Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2015 Earnings Presentation
29 slides from Auckland International Airport's earnings presentation, Aug 24, 2015
Slide 1: Delivering for the future
2015 Annual Results Delivering for the future Annual Report 2015
Slide 2: Annual results presentation notice
2015 Annual Results This annual results presentation dated 24 August 2015 provides additional comment on the media and financial materials released before the market opened on the same date. As such, it should be read in conjunction with, and subject to, the explanations and views provided in that r
Slide 3: Summary
2015 Annual Results Summary FY15 annual results Adrian Littlewood, chief executive
Slide 4: A great year
2015 Annual Results A great year Passenger movements Revenue 5.0% 15.8m International 8.1m Up 5.7% | Domestic 7.2m Up 4.2% 6.9% $508.5m International transits 0.5m Up 6.7% Operating EBITDAFI Total profit 7.0% $380.0m 3.5% $223.5m Underlying profit Underlying EPS 3.8% $176.4m 12.9% 14.8c
Slide 5: Highlights
2015 Annual Results Highlights Growing travel markets Fast, efficient and effective • Passenger growth: Momentum from Q2 • Deeper relationship with partners: maintained with strong, broad and high quality Driving greater efficiency through growth in international passengers collaborative decision ma
Slide 6: Highlights
2015 Annual Results Highlights Strengthening our consumer business • Completed duty free tender and successfully introduced two new world class duty free providers in Aelia and The Loop • Launched a range of new specialty stores throughout the year including Comvita, MAC, Saben, Casio G Shock, 3 Wis
Slide 7: Highlights
2015 Annual Results Highlights Investing for future growth • Investment in new capacity in terminals and airfield Rent 20.2% supporting domestic and regional growth roll $56.1m • Significant step up in property momentum leading to excellent results. Also benefitting from diversification of Weighted
Slide 8: Performance
2015 Annual Results Performance Financial FY15 annual results Philip Neutze, acting chief financial officer
Slide 9: Strong profit result
2015 Annual Results Strong profit result Full year financial results 12 months to 12 months to Change 30 June 2015 30 June 2014 % $M $m Revenue 508.5 475.8 6.9 Expenses 128.5 120.6 6.6 Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates 380.0 355.2
Slide 10: Underlying profit strong also
2015 Annual Results Underlying profit strong also Underlying profit 2015 2014 Reported Underlying Reported Underlying earnings Adjustments earnings earnings Adjustments earnings $M $M $M $M $M $M EBITDAFI 380.0 - 380.0 355.2 - 355.2 Share of profit from associates 12.5 (1.8) 10.7 11.6 (2.9) 8.7 Deri
Slide 11: Passenger growth across the board
2015 Annual Results Passenger growth across the board Auckland Airport passenger movements 12 months to 12 months to Change 30 June 2015 30 June 2014 % International arrivals 4,077,749 3,847,132 6.0 International departures 4,046,686 3,840,704 5.4 International passengers excluding transits 8,124,43
Slide 12: Aircraft up-gauging delivers benefits
2015 Annual Results Aircraft up-gauging delivers benefits Aircraft movements and MCTOW 12 months to 12 months to Change 30 June 2015 30 June 2014 % Aircraft movements International departures 46,692 45,809 1.9 Domestic aircraft movements 104,264 107,454 (3.0) Total aircraft movements 150,956 153,263
Slide 13: Revenue growth broad based
2015 Annual Results Revenue growth broad based Revenue composition 12 months to 12 months to Change 30 June 2015 30 June 2014 % $m $m Airfield income 93.3 87.6 6.5 Passenger services charge 140.9 131.5 7.1 Retail income 132.0 127.1 3.9 Car park income 46.6 42.8 8.9 Investment property rental income
Slide 14: Operating expenses reflect strategic focus
2015 Annual Results Operating expenses reflect strategic focus Expenses 12 months to 12 months to Change 30 June 2015 30 June 2014 % $M $M Staff 46.3 42.5 8.9 Asset management, maintenance and airport operations 44.2 40.3 9.7 Rates and insurance 10.7 10.1 5.9 Marketing and promotions 13.2 13.7 (3.6)
Slide 15: NQA and Queenstown Airports
2015 Annual Results NQA and Queenstown Airports Delivered strong contributions to our underlying profit growth 12 months to 12 months to Change 30 June 2015 30 June 2014 % Queenstown Airport $M $M Total Revenue 24.8 21.9 13.2 EBITDAFI 16.6 15.2 9.2 Domestic Passengers 1,007,713 940,477 6.4 Internati
Slide 16: Our future
2015 Annual Results Our future FY15 annual results Adrian Littlewood, chief executive
Slide 17: All regions growing through Auckland
2015 Annual Results All regions growing through Auckland 2015 passenger movements and capacity by region 17
Slide 18: Quality international passenger growth
2015 Annual Results Quality international passenger growth Chinese visa mix over time 300 46.6% Higher yielding visitors 250 Thousands • Strong growth in Chinese Free Independent 200 Travellers segment underpinned by direct 150 27.9% services 100 50 • Driving growth in average trip spend - FY2011 FY
Slide 19: Retail poised for next phase of growth
2015 Annual Results Retail poised for next phase of growth Total Retail / Duty Free • Good performance despite impact of tobacco changes. Total PSR -1% inc tobacco, +2.8% ex tobacco • Seamless transition of new operators into NZ – now refurbishing existing stores to expand footprint/range Specialty
Slide 20: End to end customer experience
2015 Annual Results End to end customer experience Lifting customer experience delivers two-way value • Ongoing investment in customer experience (roving agents, concierges, customer information systems, pre-airport travel info) • Building customer relationships through all channels (Tripit, Web, Ap
Slide 21: Future airport operating mode
2015 Annual Results Future airport operating mode Transition to future operations mode • Shifting progressively to real-time collaborative operations mode to drive productivity • ‘Airport Operating System’ and passenger flow system rollout completed during the year • Close co-ordination with airline
Slide 22: Car parking continues to grow
2015 Annual Results Car parking continues to grow Building capacity • 1,200 extra international and Park&Ride spaces for public use in FY15 • Average revenue per parking space (ARPS) dipped 5.4% due to new space, but total revenue up 8.9% Providing value-added services • International valet opened i
Slide 23: Demand supports hotel expansion
2015 Annual Results Demand supports hotel expansion • 50% expansion to Ibis budget hotel in December 2014 with an additional 73 rooms • Preferred site identified for a third hotel adjacent to international terminal • First stage of conceptual design and feasibility completed • Clear on product – exp
Slide 24: Strong property momentum
2015 Annual Results Strong property momentum Development activity has never been higher • Q4 2015 had $162m worth of development projects under construction – quadruple our best prior period • 87% of projects pre-leased (excl. Quad 7 office) Growing our logistics core… • 14,000m2 expansions includin
Slide 25: Investing in capacity for growth (1/2)
2015 Annual Results Investing in capacity for growth (1/2) 2015 progress • Addressed initial capacity priorities and took first steps on path to 30 year plan (extra MPI screening space, two new baggage belts at ITB adding +40% capacity) • Supported growth/fleet changes in domestic with two new regio
Slide 26: Investing in capacity for growth (2/2)
2015 Annual Results Investing in capacity for growth (2/2) Key focus areas for coming year • Commencing Level 1 redevelopment construction following design, scope and consultation outcomes • Staged expansion of Pier B to support international growth and fleet changes • Develop further domestic stand
Slide 27: Important recent developments
2015 Annual Results Important recent developments Economic regulation • The Commerce Commission’s current Input Methodologies (IM) Review will finish in December 2016 • We are working collaboratively with other airports and industry bodies on the IM review • WACC methodology will be a key focus • Ta
Slide 28: Guidance
2015 Annual Results Guidance • We expect total capital expenditure of between $190 million and $205 million in FY16, including approximately $100 million of aeronautical projects • Aeronautical capital expenditure will continue firming over the remainder of the current aeronautical pricing period (P
Slide 29: 2015 Annual Results
2015 Annual Results
Auckland International Airport — FY2015 Earnings Presentation on 6ix