Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Non-Deal Roadshow (August 2011)
29 slides from Auckland International Airport's roadshow presentation, Aug 16, 2011
Slide 1: Auckland International Airport Limited
Auckland International Airport Limited 16 August 2011
Slide 2: Simon Moutter and Simon Robertson
Simon Moutter Chief Executive Simon is responsible for the overall leadership, strategic direction and executive management of the Company. Prior to joining us in 2008, Simon was chief operating officer at Telecom New Zealand, managing most parts of the business at one time or another. This was prec
Slide 3: Company overview
Company overview Auckland Airport is the largest and busiest airport in New Zealand with few natural competitors • Over 13 million passengers annually - 6.0 million domestic (44%) - 7.8 million international (56%) • 154,000 aircraft movements • 200,000 tonnes of high value freight • 23 airlines (20
Slide 4: NZ's busiest airport
NZ‟s busiest airport Auckland Airport is the busiest of NZ‟s seven international airports. Over 70% of all international visitors to NZ arrive or depart from Auckland Airport. Few natural competitors. 16 Passengers (millions) 14 13.4 12 10 7.4 8 6.0 6 5.1 1.6 0.6 4 6.0 0.8 2 4.4 4.5 0.1 0 0.7 Auckla
Slide 5: High proportion of high value international passengers
High proportion of high value international passengers Auckland Airport has a balanced distribution of domestic and international passengers. Over 88% of international passengers originate or are destined for NZ. International passengers represent 55% of total passengers, the highest proportion for
Slide 6: Robust business to shocks…
Robust business to shocks… Growth in total passengers has proven its resilience during times of upheaval in the air transport industry (CAGR of approx 5% since 1998). Total passengers (including transits) 16 Sub Prime Crisis and Global Avian Flu Outbreak Recession 14 SARS Outbreak 12 September 11 Pa
Slide 7: but with exposure to high growth
but with exposure to high growth Source: Goldman Sachs Global Aviation Trends Report, 15 November 2010 7
Slide 8: Evolution of our growth strategy
Evolution of our growth strategy Our vision is to build a great New Zealand business recognised as a world leader in creating value from modern airports Vision statement refined to reflect our clear airport focus in line with our core competencies. CORE Adding value to and enabling Reflects today‟s
Slide 9: Evolution of our growth strategy
Evolution of our growth strategy Strategic Themes Negotiate Win Win Commercial Fuel growth through aeronautical commercial arrangements which deliver long-term Frameworks superior value to regulated posted-terms Drive Growth in Tourism and Drive a sustainable upward shift in New Zealand tourism and
Slide 10: To deliver strong financial outcomes
To deliver strong financial outcomes 6 months to 31 Growth over prior Dec 2010 corresponding period (%) Revenue ($m) 198.2 8.7 Earnings before interest, tax, depreciation, fair value 151.0 9.2 adjustments and investment in associates (EBITDAFI) ($m) Underlying profit after tax ($m) 61.5 14.0 Earning
Slide 11: Changing shape of travel markets
Changing shape of travel markets Our Flight-path for Growth strategy % of international 6 months 6 months Growth on launched in March 2009 had a arrivals by region Dec 2010 Dec 2009 pcp significant emphasis on Asia New Zealand 48.4% 47.8% 5.07% passenger growth. Australia 18.9% 19.6% -0.09% “Rapidly
Slide 12: and we are proactively developing air services
and we are proactively developing air services Significant route development starting in 2011/2012 Annual Airline Service Airport Route Start Date Capacity China Airlines New service Auckland Brisbane - Taipei Jan-11 96,000 Emirates Up-gauge Auckland Brisbane Jan-11 72,000 Malaysia Airlines Increase
Slide 13: Impact of RWC 2011 on growing international passenger numbers
Impact of RWC 2011 on growing international passenger numbers A total of 85,000 international Segment Visitor Arrivals visitors are specifically expected Supporters 74,800 for RWC 2011 Visitors hosted by sponsors and suppliers 6,000 Visitors will generate more than Media 2,500 one arrival as some vi
Slide 14: Passenger update – June 2011
Passenger update – June 2011 Volcanic ash from Chile impacted domestic and June 2011 Growth over prior Financial Year corresponding international passenger volumes in June. period (%) Auckland Airport Total international passenger volumes has held firm post the Christchurch and Japan International p
Slide 15: Outstanding retail performance
Outstanding retail performance Major programme of retail expansion, refurbishment and re-tenders combined with new data driven retail capability completed. New tenants opened in the six months to December 2010 include Icebreaker, Moet, Apple, Swatch, MAC cosmetics, and a Rugby World Cup store. New t
Slide 16: Car parking yield management
Car parking yield management New online parking tool, Car park product offering at Auckland Airport launched in May 2010, enables International Terminal Domestic Terminal Park & Ride dynamic management of Proximate short-term and long-term parking options Multi-level car park with direct connectivit
Slide 17: Property development opportunities
Property development opportunities Over 1,500 hectares of freehold land with over 440 hectares potentially available for commercial development. Comprehensive land use plan published with broader appeal to non-traditional airport tenants. Property kick-start strategy succeeded and now well positione
Slide 18: Accelerating property success
Accelerating property success Project Construction Value Auckland Airport Expected Completion $m Construction Cost $m Aviation Security Office 5.9 5.9 Completed - July 2010 Mercedes Parts Warehouse 3.0 3.0 Completed – Feb 2011 Novotel Hotel 65.0 6.5 Completed - May 2011 DSV Air and Sea 3.8 3.8 Compl
Slide 19: The cyclical nature of capital allocation
The cyclical nature of capital allocation Capital Expenditure Existing international terminal infrastructure 160 can accommodate growth in passenger 140 movements without major investment 34.6 120 required. 100 NZ$ million 34.2 31.0 Domestic terminal and runway infrastructure 80 42.2 pressures are r
Slide 20: Strong Balance Sheet
Strong Balance Sheet Debt maturity as at 31 March 2011 US Private Placement (USPP) US$150 400 million issuance confirmed in 350 December 2010 – first funding Debt Maturity ($ million) 300 occurred in February 2011 and 250 second in July 2011 to repay 200 maturing fixed bonds. 150 100 Long tenors of
Slide 21: Auckland Airport Master Plan – Moving to a highly efficient future
Auckland Airport Master Plan – Moving to a highly efficient future Auckland Airport strives to balance supply with demand to optimise the efficiency of existing infrastructure and deliver additional capacity when needed. Master plan moves to a dual-runway, integrated terminal design combining domest
Slide 22: Why masterplanning is a key component of strategy
Why masterplanning is a key component of strategy A320-200 fleet up gauge impact on the DTB will be significant Between FY 11–16, Air NZ will take delivery of 14 Airbus 320-200 jets, each configured to seat 171 passengers This compares with the 133 seat configuration of the Boing 737‟s they replace
Slide 23: Impact of pax growth on DTB service experience
Impact of pax growth on DTB service experience The domestic terminal is currently ~27% undersize for its peak busy throughput, based on IATA standard C (represented by the shaded green area). Absent any intervention, the service experience will continue to slide to the bottom of the IATA scale. 23
Slide 24: Together with airlines we will find the path for a better solution
Together with airlines we will find the path for a better solution We are working towards identifying the best solution with our domestic airlines. Options include investing in the current DTB location - lower initial cost - probably a medium-term solution Or investing in a new DTB to the north of t
Slide 25: Airport Boundary
Atrport Boundary Designation Line Proposed Second Runway AB Auckland Airport 25
Slide 26: Delivering operating leverage benefits
Delivering operating leverage benefits Auckland Airport 25.0% for six months ended 31 December 2010 Volume growth can be achieved 20.0% without incurring significant 15.0% operating costs or capital expenditure to deliver strong cash 10.0% flow and profit growth. 5.0% 0.0% Total Revenue EBITDA Net P
Slide 27: Earthquake impacts manageable
Earthquake impacts manageable Significant impact on Christchurch and Japan, but impact on Auckland Airport, Queenstown Airport and Cairns Airport is likely to be short and relatively modest. Impact of Japan on Cairns likely to slow the very strong growth momentum experienced this financial year. Any
Slide 28: Supportive airport regulation in NZ
Supportive airport regulation in NZ Dual-till regime with information disclosure requirements • Aeronautical till: subject to limited competition and therefore regulated • Non-aeronautical till: subject to open market competitive forces New Zealand Commerce Commission monitors regulatory regime: • D
Slide 29: The case for investment
The case for investment Low risk exposure to Asia–Pacific growth story. Ownership position in four airports all with considerable upside potential. Growth strategies succeeding in growing passenger volumes, aero revenues, retail yields and property rents and plenty more to come Strong Balance Sheet
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