Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Shareholder Meeting (November 2003)
72 slides from Auckland International Airport's shareholder meeting presentation, Nov 19, 2003
Slide 1: Auckland International Airport Limited Annual Meeting
SIZ Auckland International AWS Airport Limited 10.30 AM Wednesday, 19 NOVEMBER 2003 Newmarket Room, Ellerslie Convention Centre, Ellerslie Racecourse, Greenlane Road, Auckland
Slide 2: Chairman's Welcome
1. Chairman’s Welcome (Wayne Boyd) Good Morning ladies and gentlemen. Welcome to the sixth Annual Meeting of Auckland International Airport Limited since our listing on the New Zealand Stock Exchange in July 1998. My name is Wayne Boyd, and | am a _ non- executive Director and Chairman of the Compan
Slide 3: Introduce Board Members
2. Also, in accordance with the Company's Constitution, we will carry out voting on resolutions by a show of hands, or unless a poll is requested. Introduce Board Members (Wayne Boyd) Refer individually to Directors: > Sir Wilson Whineray » Mike Smith » Tony Frankham » Joan Withers » Chris Curley »
Slide 4: Notice of Meeting and Proxies
3. had an extensive career in financial and general management, including 11 years with Cable Price Downer. He was also a Director of the listed public company, Transalta, from 1996 to 1999. Don will have an opportunity to introduce himself and to address shareholders later in the meeting. Notice of
Slide 5: Chairman's Address
representatives of the Company’s Auditors, Deloitte Touche Tohmatsu, are in attendance and can, of course, answer any queries that might relate to audit matters. Do | have a seconder? | second the motion. lt has been moved and seconded that “the Annual Report and Financial Statements for the year en
Slide 6: Financial Results
Financial Results > Results for the four months to the end of October, > Outlook for the year. The last two years have been, to say the least, traumatic in respect of the international aviation industry. The events of September 11, the bombing in Bali, hostilities in Iraq, followed by the outbreak o
Slide 7: Record results and dividends
Despite all the difficulties last year, we were still able to record a 5.1% increase in international passengers, as well as an 11.6% increase in domestic numbers. These increases, together with higher aircraft activity, were reflected in our 13.4% increase in operating revenue which amounted to $22
Slide 8: Whenuapai
Whenuapai the Company commit to cease incineration of ail quarantine waste within 12 months and change to steam sterilisation. The resolution was discussed and considered by shareholders and, when put to the meeting, was lost on a show of hands. The Company, however, gave an undertaking at the meeti
Slide 9: Whenuapai Air Force Base consultation
Force Base. The consultation timetable sets submissions by the end of the calendar year, followed by a further round of consultation, culminating in a recommendation to Cabinet by the end of March next year. The Company’s view is that a second commercial airport for Auckland is not needed. Commercia
Slide 10: First Four Months Outlook
First Four Months Outlook Customarily, we advise our results for the first four months of the current financial year at the Annual Meeting. Conditions for the first four months have been particularly buoyant. International passenger numbers, inclusive of transits and transfers, are 7.9% ahead of the
Slide 11: Airline capacity increases
Many of our existing carriers ~ Air New Zealand, Qantas, Singapore and Cathay Pacific ~ have expanded services, while we also have three new airlines in the form of Emirates (from Dubai), Asiana (from Korea) and Royal Brunei. While the airlines’ increases in seat capacity are encouraging, the real i
Slide 12: Conclusion
Conclusion address commenting on this and a number of other key issues currently being addressed by the Company. In respect of the year-end result, the Board is confident that last year’s operating surplus of $76.8 million will be comfortably exceeded. The consensus amongst financial analysts at pre
Slide 13: Directors
6. Directors (Wayne Boyd) Is there any discussion or comment from shareholders? | now put the motion. All those in favour, please raise your right hand. All those against, please raise your right hand. | declare the motion carried. The Company currently has five Directors. We previously had six, whi
Slide 14: Director re-election
Therefore, Sir Wilson Whineray and Mr Anthony Frankham both retire by rotation and offer themselves for re-election. | move that “Sir Wilson Whineray be and is hereby re-elected a Director of the Company”. Do | have a seconder please? It has been moved and seconded that “Sir Wilson Whineray be and i
Slide 15: Auditors
7. 8. Auditors (Wayne Boyd) All those in favour, please raise your right hand. All those against, please raise your right hand. | declare the motion carried. In terms of section 196 (1) of the Companies Act 1993, | move that “the Directors be authorised to fix the fees and expenses of the Auditors”.
Slide 16: Directors' Remuneration
Pursuant to NZX Listing Rule 3.5.1 and ASX Listing Rule 10.17, the Notice of Meeting records that the Board is seeking shareholder approval to an increase in the total quantum of Directors’ fees by $47,500 from $290,000 per annum to $337,500 per annum. As explained with the Notice of Meeting, the Co
Slide 17: General and Closure
9. General (Wayne Boyd) 10. Closure (Wayne Boyd) | now put the motion. All those in favour, please raise your right hand. All those against, please raise your right hand. | declare the motion carried/ost. There is no other ordinary business. However, as | indicated earlier, shareholders have an oppo
Slide 18: Auckland International Airport Limited
SIZ Auckland International AW Airport Limited 10.30 AM Wednesday, 19 NOVEMBER 2003 Newmarket Room, Ellerslie Convention Centre, Ellerslie Racecourse, Greenlane Road, Auckland
Slide 19: CEO Address: Opening
Thank you, Mr Chairman. Mr Chairman, | am pleased to second the motion and very much welcome the opportunity to address shareholders. Ladies and gentlemen, fellow shareholders. It is a particular pleasure for me to be here in Auckland, attending my first Annual Meeting of the Company after just four
Slide 20: Introduction
Introduction | am keenly aware of the responsibilities and expectations that come with my appointment. Let me at the outset, acknowledge the contribution of my predecessor, John Goulter, the whole Airport team and, importantly, the Board. | have received a very warm welcome from across the whole Com
Slide 21: Approach and Investment Attributes
Approach Management is committed to delivering sustainable shareholder value. | see this being achieved through helping to deliver sustainable value to our Company’s many business partners and to our Company's broader community interests. Such an approach to my mind is crucial for all commercial ent
Slide 22: Growing high yield airport enterprise
2. It is a growing high yield airport enterprise. It enjoys a number of structural advantages: > Over 70% of international visitors to New Zealand travel through Auckland; > 5.5 million international passengers, comprising 57% of Auckland’s annual total passengers; > Operates 24 hours a day, with no
Slide 23: Business Priorities
* and notwithstanding last weekend’s result for the All Blacks, there have been positive travel volume spin-offs from the Rugby World Cup. Business Priorities There are clearly a number of important priorities currently before us. They include: 1. Supporting aircraft and passenger growth: > We have
Slide 24: Long-term capital expenditure programme
> Long-term capital expenditure programme: * Completion of main runway rehabilitation in further stages by 2012. * Second runway is in the Manukau City Plan. This will ensure Auckland International Airport at Mangere can meet the airport needs of the greater Auckland Region for the next, say, 50 yea
Slide 25: Property and Retail
2. Property: 2003/04 has been and will continue to be a busy year with the following properties either under construction or due for completion: > New office warehouse facilities: » Wilson Logistics; = Excel New Zealand: = Fliway Logistics; * Barber Logistics; * Supply Chain Solutions. > New food an
Slide 26: New concessions and Security
Some of the specialty stores have new operators. New concessions operating at the airport include: Walker & Hall — one of NZ’s renowned jewellers; Pumpkin Patch - specialising in children’s wear; Beach Culture — which has been operating a landside store has now added an airside one: The Great New Ze
Slide 27: Passenger separation project
Design work on the project is advancing well. The concepts and passenger flows necessary to achieve a full separation of passengers have been determined and agreed in principle with the airlines. Current estimates of the cost of the project are in the vicinity of $35 million. The project is likely t
Slide 28: Airport charges and future investment
Airport charges and future investment: As noted in the 2003 Annual Report, in May this year the Hon Lianne Daiziel, Minister of Commerce, announced no controls would be imposed on airfield activities at any of New Zealand's three major airports. Her decision took into account a wider range of issues
Slide 29: Conclusion
Conclusion The Airport Marae which is due to be built on land near the Aviation Country Club is being managed by a Trust involving the airport and Tainui, as tangatawhenua. A blessing ceremony was held earlier this year for the unique and culturally significant asset to the airport and community. Th
Slide 30: Closing remarks
With all this in prospect, and as | noted in my brief comments (on Page 9) in the 2003 Annual Report: “There is certainly much to look forward to.” Mr Chairman, ladies and gentlemen, thank you. oc000c00 13
Slide 31: Auckland International
Auckland International 1 Airport Limited
Slide 32: Welcome
Welcome. . Sixth Annual Meeting since listing Quorum = Please give your name when moving _ or seconding motion ._.. Roving microphones | | Questions at the end of the meeting — Voting on resolutions by show of hands Auckland International Airport Limited
Slide 33: Directors
Sir Wilson Whi Joan wit Wayne Boyd Auckland International Airport Limited
Slide 34: Auckland International
Zi a Auckland International Airport Limited
Slide 35: Chief Executive Officer
| anage cer _ Chief executive offi Auckland International Airport Limited
Slide 36: John Goulter
ie a i ce. Goulter_ John AES berk Auckland International Airport Limited
Slide 37: Chief Executive Officer
| anage cer _ Chief executive offi Auckland International Airport Limited
Slide 38: Annual Report
a - ] = Annual Report — Auckland International Airport Limited
Slide 39: ch a - - - a / - Auckland International
ch a - - - a / - Auckland International Airport Limited
Slide 40: ae | .
ae | . Auckland International Airport Limited 40
Slide 41: Auckland International
Auckland International Airport Limited 14
Slide 42: Record passenger numbers
Record passenger 1% i increase ir Auckland International 12 Airport Limited
Slide 43: Operating revenue and surplus
13 Operating revenue | Operating expenses Surplus before interest, | taxation & depreciation interest | Depreciation Surplus before taxation Taxation Operating surplus after taxation Non “recurring revenue Surplus after taxation _ 168 Auckland International Airport Limited
Slide 44: 7.4% increase in operating surplus after tax
= 7. 4% i increase in operating : surplus after ta fe $76.8 : _ 2. cents per sr share or oe million Auckland International 14 Airport Limited
Slide 45: Cents per share
Cents per share Interim [Final 7 : | Total CPS _ | - - | Total $67.0m| $56.9m|_ _| Earnings per share 27.44 16.95 | Shares on issue as at 30 June 304,354,619 | 422,000,000 / Auckland International 15 Airport Limited
Slide 46: Greenpeace proposed resolution
reenpuace proposed =. : _ resolution © | ‘Lost c on show of han ® Undertaking to investigate . alternatives © Tv wo processes being _ evaluated : Joint venture. e partner - Tredi SA Operating within Resource e Management consents — Auckland International 16 Airport Limited
Slide 47: New Zealand Defence Force consultation document
= New Zealand Defence Force _ _consultationdocument = Auckland International 17 Airport Limited
Slide 48: Existing approvals
ing approvals = Can meet aviation dem nds for the : next years Auckland International 18 Airport Limited
Slide 49: Passenger movements and results
19 International pax movemen | Domestic pax movements Revenue | Surplus aft rta | Auckland International Airport Limited
Slide 50: International seat capacity
Zi a inten national seat Auckland International Airport Limited
Slide 51: Chief Executive
. _ . Chief Auckland International Airport Limited
Slide 52: Business model attributes
22 ambiguous, transparent governal e _ Quality, resil ent earnings/operating — _ cash flows | Strong fina ncial position. _ ng term growth capacity | Economically efficient Auckland International Airport Limited
Slide 53: Structural advantages
70% of international visitors travel through AKL . * 5. 5m international passengers | _ = 57% total passengers — of 24l7 operation, no curfew _ - Long term capacity to grow é aviation, retail, Car parking and id Pianery businesses | Auckland International 23 Airport Limited
Slide 54: Growth prospects
. GDP growth i Ta n NZ, Australia and beyond 8 International airline capacity and | competition | _® Visitor arrivals forecast to increase from 2.05m (2002) to 2.7m (2007), Auckland International Airport Limited
Slide 55: Visitor arrivals chart
25 peste a pistes Source: Statistics N Auckland International Airport Limited
Slide 56: Auckland International
Auckland International Airport Limited
Slide 57: Supporting aircraft and passenger growth
is = Supporting : aircraft and passenger growth | Operat ee and short-term capital _- Task roups _ Bussing . new aircraft stands oading improvements _ ar park expansion unw rehabilitation Auckland International Airport Limited 27
Slide 58: Second international pier and domestic terminal capacity
Secon " Domestic terminal capacity Auckland International Airport Limited 28
Slide 59: Auckland International
Auckland International 29 Airport Limited
Slide 60: Se STS SU GES
Se STS SU GES RN ee . oe Se So LL fs 2: oS ted oe : 7 7 - a Lo a Auckland International Airport Limi aie _ Ff \ ws C —hUwrrt—™sCO*FeG 4) 2 cc -, Nii 7 7 7 Le a 7 - [ SH Muiiiicn. ce oS oo . . 7 | ye oo ey ae Lo Bone _ ae FF yp ue _ 7 ee Soe or & co Cc a a Cc @ 2 —o co) ) wy) Ss 7°) e CS ale y TIES i
Slide 61: New office warehouse facilities
Nev office warehouse facilities Vehic servicing f facilities _ National Rental Cars Auckland International 31 Airport Limited
Slide 62: New retail concessions
- Pumpkin Patch - Po vulture Auckland International 32 Airport Limited
Slide 63: Security projects
- “Separation of arriving and : departing international passengers: -— CAArequirement . Passenger separation _ — Design project underway _ Estimated cost $35 | mi tion Airline agr Feement Screaning International hold stow bagg a CAA study — . _ nternational obl gations -i January 2006 _. = Implement
Slide 64: Auckland International
Auckland International 34 Airport Limited
Slide 65: Auckland International
Auckland International 35 Airport Limited
Slide 66: Chairman
i Chairman Auckland International 36 Airport Limited
Slide 67: Auckland International
Auckland International Airport Limited 37
Slide 68: Directors for re-election
oe _. _ Sir Wilson Whi neray Mr Anthony Frankham Auckland International Airport Limited 38
Slide 69: Auckland International
Auckland International Airport Limited
Slide 70: Directors' fees resolution
. “That the total guenhime of an ua . fees bei increased by $47, 500 nom ‘$290, 000 to _ such amount to be divided amongst _ “the directors as they face appropriate” Auckland International 40 Airport Limited
Slide 71: Positive Outlook for Auckland Airport
P O Box 73-020 WIZ Auckland International Auckland Airport Aus Airport Limited Now Zealand 19 November 2003 Positive Outlook for Auckland Airport At the company’s Annual Meeting held in Auckland on Wednesday, Auckland international Airport Limited (AIAL} chairman, Wayne Boyd, reflected on the last t
Slide 72: Press release continued
P O Box 73-020 WIZ Auckland International Auckland Airport Aus Airport Limited Now Zealand deliver shareholder value growth by leveraging off the company’s particular attributes and structural strengths as New Zealand’s premier airport.” Shareholders heard from Huse that he had a commitment to “deli
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