Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2017 Earnings Presentation
28 slides from Auckland International Airport's earnings presentation, 2017
Slide 1: Interim Results 2017
Adrian Littlewood Chief Executive Philip Neutze Interim Results 2017 Chief Financial Officer
Slide 2: Highlights
Highlights FY17 interim results Adrian Littlewood, chief executive
Slide 3: Results at a glance
Results at a glance 2017 Interim Results Highlights Revenue Passenger movements 10.8% $310.9m 12.4% 9.4m performance Financial Operating EBITDAFI Aircraft movements Our continuing journey 10.5 % $235.9m 8.9% 84,593 Underlying profit Interim dividend per share 18.6% $123.5m 17.6% 10 cents 3
Slide 4: Growing and supporting tourism, upgrading infrastructure
Highlights 2017 Interim Results ✓ Growing and supporting tourism Highlights • Rapidly changing market structure – the number of international airlines servicing Auckland has increased 50% in only 18 months • International passengers up 11.9%1, domestic passengers up 11.7% performance Financial • Sus
Slide 5: Financial performance
performance Financial FY17 interim results Philip Neutze, chief financial officer
Slide 6: Strong half year result
Strong half year result 2017 Interim Results Highlights 2016 2015 Change For the 6 months to 31 December $m $m Revenue 310.9 280.6 10.8% Expenses 75.0 67.1 11.8% performance Financial Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates 235.9 213.5 1
Slide 7: Strong revenue growth across the business
Strong revenue growth across the business 2017 Interim Results 2016 2015 Change Highlights For the 6 months to 31 December $m $m Airfield income 59.2 50.2 17.9% Passenger services charge 85.9 75.5 13.8% performance Financial Retail income 80.7 78.6 2.7%1 Car park income 28.9 26.0 11.2% Our continuin
Slide 8: Exceptional passenger growth
Exceptional passenger growth 2017 Interim Results Highlights For the 6 months to 31 December 2016 2015 Change International arrivals 2,462,690 2,209,510 11.5% International departures 2,328,575 2,070,923 12.4% performance Financial International passengers excluding transits 4,791,265 4,280,433 11.9
Slide 9: Continuing growth in runway movements
Continuing growth in runway movements 2017 Interim Results Highlights For the 6 months to 31 December 2016 2015 Change Aircraft movements International aircraft movements 27,476 24,343 12.9% performance Financial Domestic aircraft movements 57,117 53,357 7.0% Total aircraft movements 84,593 77,700 8
Slide 10: Expenses driven by business growth
Expenses driven by business growth 2017 Interim Results 2016 2015 Change Highlights For the 6 months to 31 December $m $m Staff 24.9 22.4 11.2% Asset management, maintenance and airport operations 26.1 23.5 11.1% performance Financial Rates and insurance 6.1 5.7 7.0% Marketing and promotions 7.9 6.3
Slide 11: Associates' performance
Associates’ performance 2017 Interim Results 2016 2015 Change For the 6 months to 31 December Highlights $m $m Queenstown Airport (24.99% ownership) Total Revenue 19.6 15.7 24.8% performance Financial EBITDAFI 13.1 11.7 12.0% Domestic Passengers 660,231 565,595 16.7% International Passengers 299,088
Slide 12: Our continuing journey
Our continuing journey FY17 interim results Adrian Littlewood, chief executive
Slide 13: Growing Travel Markets: new routes and capacity
Strategic priority: Growing Travel Markets 2017 Interim Results New routes and capacity underpin passenger growth 27 international Highlights airlines 1 • International airline capacity up 17% in the six months to 31 December with increases in service frequency, aircraft upgauging, 4 new airlines an
Slide 14: Sustainably growing travel markets
Strategic priority: Growing Travel Markets 2017 Interim Results Sustainably growing travel markets Highlights Europe / Middle East China USA • European visitors up 13%1 • Chinese visitors up 5%1 • USA visitors up 37%1 • • • Entry of USA carriers and access performance Significantly enhanced connecti
Slide 15: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2017 Interim Results Strong performance despite significant disruption Highlights • International terminal PSR up 0.9% on prior year despite ongoing construction work to upgrade the international departure area performance Financial • Duty Free pe
Slide 16: Major upgrade of international departure retail hub
Strategic priority: Strengthen our consumer business 2017 Interim Results Major upgrade of our international departure retail hub Highlights • ~45 units up for tender in the new international terminal expansion • Excellent interest from retailers in securing space performance Financial • Confident i
Slide 17: Parking revenue growth in line with passenger growth
Strategic priority: Strengthen our consumer business 2017 Interim Results Parking revenue growth in line with passenger growth Highlights • Parking revenue up 11.2% driven by double digit passenger growth • ARPS up 2.6% due to increased car parking space utilisation performance Financial • Continuin
Slide 18: Investing in our customer experience
Strategic priority: Be fast, efficient and effective 2017 Interim Results Investing in our customer experience 45 New mobile international self- Highlights service check-in kiosks • 13 new check-in counters and 45 new mobile check-in kiosks in the international terminal • Upgraded back-of-house bagg
Slide 19: Invest for future growth
Strategic priority: Invest for future growth 2017 Interim Results 42 capital expenditure projects currently underway each valued at over $1m Highlights • Completed new taxiway and fully serviced airfield stand • Completed critical water, waste water, electricity and fuel projects to ensure robust on
Slide 20: Improving our transport network
Strategic priority: Invest for future growth 2017 Interim Results Improving our transport network Highlights • Established a taskforce with the NZ Transport Agency and Auckland Transport focused on improving access to the airport precinct performance Financial • Transport initiatives to improve trav
Slide 21: 16.5% growth in property revenue
Strategic priority: Invest for future growth 2017 Interim Results 16.5% growth in property revenue Highlights • Rent roll up 12% on the prior year $64.6 million Investment property rent roll • $141m of projects under construction 281 hectares Land available for performance • 10,000 sqm of pre-commit
Slide 22: Investing in our community
Strategic priority: Invest for future growth 2017 Interim Results Investing in our community Highlights • Ara, the Auckland Airport jobs and skills hub, is gaining momentum. In the past six months Ara organised 746 training opportunities and placed 61 people into employment performance – 35 came off
Slide 23: Regulatory update
Regulatory update 2017 Interim Results Economic regulation Highlights • The Commerce Commission completed its input methodologies review in December 2016 • The final decision reaffirmed that the Commission does not set prices for airport services and that its focus is on ensuring there is transparen
Slide 24: Outlook
Outlook 2017 Interim Results Guidance Highlights • Ongoing strong performance to date has been in line with expectations performance • We are now tightening underlying net profit after Financial tax (excluding any fair value changes and other one-off items) guidance to between $235 million and $243
Slide 25: Questions
Questions
Slide 26: Appendix
Appendix
Slide 27: Underlying profit reconciliation
Underlying profit reconciliation 2017 Interim Results 2016 2015 Reported Adjustments Underlying Reported Adjustments Underlying For the 6 months to 31 December earnings $m earnings earnings $m earnings $m $m $m $m EBITDAFI 235.9 - 235.9 213.5 - 213.5 Share of profit from associates 10.0 (2.4) 7.6 4.
Slide 28: Important Notice and Glossary
Important Notice and Glossary 2017 Interim Results Disclaimer This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription, purchase, or recomm
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