Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (September 2018)
38 slides from Auckland International Airport's debt investor presentation, September 2018
Slide 1: NZDCM Presentation
Delivering NZDCM Presentation Philip Neatze _ Chief Financial Officer Stewart Reynolds Strategy, Planning @nd Performan
Slide 2: Important notice
Important notice 2018 September NZDCM Presentation Auckland Airport intends to make an offer of fixed rate bonds (Bonds) in reliance upon the exclusion in clause 19 of schedule 1 of the Financial Markets Conduct Act 2013 (FMCA). Except for the interest rate and the maturity date, the Bonds will have
Slide 3: Key Terms of the Offer
Key Terms of the Offer 2018 September NZDCM Presentation Issuer Auckland International Airport Limited (“Auckland Airport”) Direct, unsecured, unsubordinated, fixed rate debt obligations of Auckland Airport ranking equally and without preference among themselves and equally with all other Descriptio
Slide 4: Company overview
Company overview
Slide 5: Auckland Airport at a glance
Auckland Airport at a glance 2018 September NZDCM Presentation 20.5 million 93 Company Overview % share of long haul arrivals to New Zealand annual passengers 30 international Strategy for Auckland Airport our future airlines in 2018 48 international destinations 75 % share of international visitors
Slide 6: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2018 September NZDCM Presentation New Zealand international airports by passenger numbers 1 Company Overview • The largest airport in New Zealand Auckland • Main commercial airport serving New Zealand’s Strategy for largest city with: our future 20.53 m
Slide 7: Connecting New Zealand to the world
Connecting New Zealand to the world 2018 September NZDCM Presentation Auckland Airport connects New Zealand to 48 international destinations Company Overview Strategy for our future London Vancouver Chicago Information Beijing Financial Haneda Xi’an Tianjin Seoul Narita San Francisco Chengdu Osaka L
Slide 8: Proven passenger growth
Proven passenger growth 2018 September NZDCM Presentation Total passengers at Auckland Airport Company Overview 22 20 Strategy for our future 18 16 Sub-Prime Crisis Christchurch and Global Earthquake Information Financial 14 Recession Annual Passengers (m) Avian Flu Outbreak SARS 12 Outbreak Sept 11
Slide 9: Diverse and complementary business activities
Diverse and complementary business activities 2018 September NZDCM Presentation Company Overview Aeronautical Retail Transport Strategy for our future Information Financial • $301.2m revenue in FY18 • $190.6m revenue in FY18 • $61.0m revenue in FY18 (9% Outlook (44% of the company) (28% of the compa
Slide 10: Diverse and complementary business activities
Diverse and complementary business activities 2018 September NZDCM Presentation Company Overview Investment Property Hotel Portfolio Queenstown Strategy for our future Information Financial • $1.2bn investment property • Portfolio of two hotels being a • ~25% stake in Outlook portfolio Novotel 263 r
Slide 11: Regulatory environment
Regulatory environment 2018 September NZDCM Presentation Overview ~50% of FY18 revenue is Company Overview • Dual-till regime, with the aeronautical segment subject to regulated 400 information disclosure regulation under the Commerce Act 350 1986 Strategy for our future 300 • Disclosure regime incl
Slide 12: Strategy for our future
Strategy for our future
Slide 13: Our strategy
Our strategy 2018 September NZDCM Presentation Company Overview Adopt an ambitious and innovative approach to help New Zealand to sustainably unlock the growth opportunities in travel, trade and tourism Strategy for our future Strengthen and extend our retail, transport and hotel Information Financi
Slide 14: Growing travel and trade markets
Strategic priority: 2018 Growing travel and trade markets September NZDCM Presentation Long-term the outlook remains positive… Multiple opportunities for growth remain Company Overview • Chinese and Indian middle-class • Continue to focus on emergence and passenger growth underserved markets such as
Slide 15: Investing for future growth
Strategic priority: 2018 Investing for future growth September NZDCM Presentation Company Overview Strategy for our future Information Financial International departures expansion New domestic jet terminal Outlook Transport Nth Park & Ride Key benefits: Nixon Rd Bypass • Improving land transport is
Slide 16: Auckland Airport 2044 concept and development timeline
Improved s = Improved public >=. —._ international transport and roading a= = arrival New 5-star infrastructure es experience” ~hotel = 2017 to 2022 2024 Upgrade internatiorra= departure experience = = 2017 t0-2019 New domestic jet terminal* Upgrade ‘ international-=*=* ¢heck-ir’area Building for pl
Slide 17: Be fast, efficient and effective
Strategic priority: 2018 Be fast, efficient and effective September NZDCM Presentation Investing in our core operations Company Overview To improve airport coordination To improve operational effectiveness To improve passenger services Strategy for our future Information Financial First stage trial
Slide 18: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2018 September NZDCM Presentation Improved retail offering driving strong revenue growth New retail concepts opened 13 Company Overview during the year • 2018 was a milestone year for our most complex project to date - the expansion of the interna
Slide 19: International departures delivering an improved experience
Strategic priority: Strengthen our consumer business 2018 September NZDCM Presentation International departures delivering an improved experience Company Overview Events during the FY18 year • Opened new enlarged security screening, ‘decompression’ and dwell areas Strategy for our future • First sta
Slide 20: New and exclusive names are coming
New and exclusive names are coming 2018 September NZDCM Presentation Luxury Destination Food & Beverage Company Overview Strategy for our future Information Financial Outlook 20 Excludes existing brands
Slide 21: Focusing on what's important
Focusing on what’s important 2018 September NZDCM Presentation Company Overview Customer Safety and Education and experience sustainability employment Strategy for our future Invested in infrastructure that has Committed to operating in a safe and Sharing the benefits of our enhanced the customer ex
Slide 22: Financial information
Financial information
Slide 23: Strong five year financial performance
Strong five year financial performance 2018 September NZDCM Presentation Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 CAGR $m Revenue 683.9 629.3 573.9 508.5 475.8 9.5% Expenses 177.5 156.2 143.6 128.5 120.6 10.1% Strategy for our future Earnings before interest, taxation, de
Slide 24: Growth across all revenue streams
Growth across all revenue streams 2018 September NZDCM Presentation Revenue by segment Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 CAGR $m Strategy for our future Airfield income 122.1 119.6 103.4 93.3 87.6 8.7% Passenger services charge 179.1 174.3 154.9 140.9 131.5 8.0% Re
Slide 25: Summary balance sheet
Summary balance sheet 2018 September NZDCM Presentation Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 CAGR $m Cash 106.7 45.1 52.6 38.5 41.4 26.7% Trade and other receivables 71.5 55.5 42.3 36.6 29.0 25.3% Strategy for our future Other current assets 0.2 3.4 8.0 12.3 3.2 (50.0
Slide 26: Capital expenditure
Capital expenditure 2018 September NZDCM Presentation • Capital expenditure in 2018 increased 8.1% to Historical and forecast capital expenditure Company Overview $405.2m 600 • Over 90% of the capital expenditure is investing 500 for future earnings growth, c.$40m renewals Strategy for 400 our futur
Slide 27: Credit metrics
Credit metrics 2018 September NZDCM Presentation Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 Debt / debt + market value of equity 20.4% 19.5% 19.7% 22.5% 24.7% Debt / EBITDAFI 3.8x 4.3x 4.4x 4.5x 4.2x Strategy for our future Funds from operations / net debt 18.4% 16.5% 16.7%
Slide 28: Funding
Funding 2018 September NZDCM Presentation • Reflecting increased infrastructure investment, Sources of funding Company Overview offset by proceeds from the sale of North Queensland Airport, total borrowings at 30 June 2018 were flat with the prior year at $2,060m Commercial paper (4.7%) Strategy for
Slide 29: Outlook
Delivering Planning Building Delivering Planning
Slide 30: Outlook: Guidance
Outlook 2018 September NZDCM Presentation Guidance Company Overview • Moderate underlying profit growth anticipated as we enter the second year of international aeronautical price reductions in the new FY18-22 pricing period Strategy for our future and infrastructure investment continues at pace • W
Slide 31: Questions?
Delivering Planning Building Delivering Planning
Slide 32: Reference material and further details
Reference material and further details 2018 September NZDCM Presentation Reference material Company Overview Auckland Airport website: https://corporate.aucklandairport.co.nz/ Strategy for our future Debt investor inquiries Campbell De Morgan, Treasury Specialist DDI: +64 9 255 9029 Information Fina
Slide 33: Appendices
Delivering Planning Building Delivering Planning
Slide 34: Board of directors
Board of directors 2018 September NZDCM Presentation Sir Henry van der Heyden Mark Binns Brett Godfrey Julia Hoare Chair Director Director Director James Miller Justine Smyth Christine Spring Dr Patrick Strange Director Director Director Director 34
Slide 35: Significant land holdings
Significant land holdings 2018 September NZDCM Presentation Auckland Airport boundary Auckland CBD • Auckland Airport owns approximately 1,500 hectares of freehold land (250 hectares available for investment property development, bounded by the blue line and sea shore) • Vacant land enables staged a
Slide 36: Runway movements growing
Runway movements growing 2018 September NZDCM Presentation Aircraft movements 200,000 180,000 160,000 140,000 Domestic aircraft 120,000 114,366 118,583 movements 100,000 110,832 107,454 104,264 107,944 International aircraft 80,000 movements 60,000 40,000 44,314 45,809 46,692 49,828 54,879 55,693 20
Slide 37: Underlying profit reconciliation
Underlying profit reconciliation 2018 September NZDCM Presentation 2018 2017 Reported Underlying Reported Underlying For the year ended 30 June profit Adjustments profit profit Adjustments profit $m $m $m $m $m $m EBITDAFI 506.4 - 506.4 473.1 - 473.1 Share of profits of associates 16.7 - 16.7 19.4 (
Slide 38: Important Notice and Glossary
Important Notice and Glossary 2018 September NZDCM Presentation Disclaimer This presentation is for preliminary information purposes only and is not an offer to sell or the solicitation of any offer to purchase or subscribe for any financial products and no part of it shall form the basis of or be r
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