Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Presentation (April 2023)
37 slides from Auckland International Airport's investor presentation, Apr 21, 2023
Slide 1: Overview of Auckland Airport for Hamilton Hindin Greene
Overview of Auckland Airport for Hamilton Hindin Greene 21 April 2023 Prepared by: Strategy, Planning & Performance
Slide 2: Auckland Airport, a gateway to New Zealand…
Auckland Airport, a gateway to New Zealand… Auckland Airport is the largest and busiest airport in New Zealand with an extensive domestic aeronautical network, connecting with Kiwis from Kaitaia to Invercargill • New Zealand’s largest commercial airport serving the country’s largest city • Auckland
Slide 3: …and connected New Zealand to the world
…and connected New Zealand to the world Pre-COVID Auckland Airport connected New Zealand to 43 international destinations Key New services Routes launched or announced based on single ticketed fares. Page 3
Slide 4: Over 50 years of passenger growth in the lead up to COVID
Over 50 years of passenger growth in the lead up to COVID It took 48 years to reach 15m passengers and only another 4 years to exceed 20m 25 PAX (m) 20 6.7% Auckland Airport officially opened International terminal New international expansion terminal opened 52 year CAGR 15 International terminal ne
Slide 5: Overview of Auckland Airport
Overview of Auckland Airport Diverse and complementary business activities Aeronautical Retail Transport Investment Property Hotels Queenstown Airport Page 5
Slide 6: Quality retail precinct
Quality retail precinct ANZ Investor Day Page 6 6
Slide 7: Extensive transport business…
Extensive transport business… Page 7
Slide 8: …with a range of products currently on offer and in development
…with a range of products currently on offer and in development Page 8
Slide 9: Significant hotel portfolio
Significant hotel portfolio 273 198 311 rooms rooms rooms Page 9
Slide 10: High quality commercial property portfolio
High quality commercial property portfolio Page 10
Slide 11: Significant land holding enables a precinct wide vision
Significant land holding enables a precinct wide vision Notes: 1. Pre-COVID-19, for the 12 months to 31 Dec 2019 Page 11
Slide 12: The airport is a combination of regulated and unregulated activities
The airport is a combination of regulated and unregulated activities 2019 Revenue composition - $738.2m 17% Airfield income 12% Rental income 30% Retail income 3% Rental 1% Other 25% Passenger services charge 9% Car park income 3% Other Page 12 12
Slide 13: Historically Auckland Airport has been resilient to external shocks
Historically Auckland Airport has been resilient to external shocks Pre-COVID, passenger numbers at Auckland Airport had displayed resilience to several external shocks, but COVID has had a significant impact on the business Auckland Airport annual passenger movements to FY20 Phases of Auckland Airp
Slide 14: So where are we today? Respond Recover Accelerate
So where are we today? Respond Recover Accelerate COVID-19 and the associated imposition of travel restrictions resulted in two full financial years of disruption for Auckland Airport. Passenger numbers are expected to be back to pre-pandemic levels during 2025 Monthly passenger numbers 110% 100% 90
Slide 15: Broad-based recovery driven from PAX mix
Broad-based recovery driven from PAX mix Respond Recover Accelerate The recovery in aviation markets is strengthening as Kiwi outbound travellers are joined by increasing numbers of international visitors. Holiday travel has rebounded strongly with the overall purpose of travel mix similar to pre-CO
Slide 16: International travel recovery ongoing
International travel recovery ongoing Respond Recover Accelerate International seat capacity serving Auckland is expected to significantly increase over the remainder of the calendar year as airlines restart previous Auckland services and launch new routes Auckland international seat capacity (000s)
Slide 17: The recovery is not without its challenges
The recovery is not without its challenges Respond Recover Accelerate From labour shortages, poor on-time performance, lost baggage and cost inflation to high ticket prices, a number of factors are presenting as challenges to the recovery in the aviation system Worker shortages Displaced baggage Ele
Slide 18: 1H23 Results at a glance
1H23 Results at a glance Revenue Reported profit Passenger Operating after tax movements Cashflow $287.8m $4.8m 7.6m $140.3m 128% on 1H22 96% on 1H22 341% on 1H22 474% on 1H22 (78% of 1H19) (3% of 1H19) (71% of 1H19) (90% of 1H19) 1H23 earnings per share of 0.33cps 1 1 EBITDAFI Underlying Aircraft C
Slide 19: The recovery in aviation is driving improved results
The recovery in aviation is driving improved results Aeronautical Retail Parking $101.5m revenue 195% $59.4m income 761% $27.5m revenue 216% 7.6m passengers comprising: Largely reopen (ITB 87%, DTB 95%) Strong activity reflecting increased 3.2m international Retail IPP3 up 102% demand for self-drive
Slide 20: Return to underlying profit
Return to underlying profit For the year ended 30 June (H1 2023 6 months to 31 December 2022) Restated $m H1 2023 2022 20213 2020 2019 Revenue 287.8 300.3 281.1 567.0 743.4 Expenses1 98.8 155.8 110.0 306.6 188.6 Earnings before interest, taxation, depreciation, fair value adjustments and 189.0 144.5
Slide 21: Balance sheet remains strong
Balance sheet remains strong As at 30 June Restated $m Dec-2022 2022 20211 2020 2019 Cash 62.8 24.7 79.5 765.3 37.3 Trade and other receivables 58.7 28.5 25.4 34.7 69.0 Other current assets 21.7 21.6 20.9 37.0 - Current assets 143.2 74.8 125.8 837.0 106.3 Property, plant and equipment 7,130.3 6,986.
Slide 22: Building a better future…
Building a better future… Re-establishing our aeronautical network and Driving the recovery in our commercial Continued disciplined approach to investment supporting the recovery in travel business in infrastructure and commercial opportunities Delta Airlines announced a daily Auckland-Los Angeles R
Slide 23: …and connecting New Zealand to the world
…and connecting New Zealand to the world Pre-COVID Auckland Airport connected 29 airlines to 43 international destinations. Next summer, Auckland expects it will connect 26 airlines to 37 international destinations Vancouver Beijing Chicago San Francisco Seoul New York Tokyo Los Angeles Dallas Fort
Slide 24: Five key projects now underway whilst three remain on hold
Five key projects now underway whilst three remain on hold 2021 Annual Results Highlights performance Financial Our continuing journey Outlook 24 Page 24
Slide 25: Significant progress towards terminal integration
Significant progress towards terminal integration 2021 Annual Results Substantial enabling work continues on the design of an integrated terminal that is planned to be tightly integrated with the existing international terminal building Highlights • Construction on key enabling work projects well un
Slide 26: Artist impression of the new domestic terminal
2021 Artist impression of the new domestic terminal Annual Results Highlights performance Financial Our continuing journey Outlook 26
Slide 27: Construction of key enabling projects well underway
2021 Construction of key enabling projects well underway Annual Results Highlights performance Financial Our continuing journey Outlook 27
Slide 28: Artist impression of the new Transport Hub
Artist impression of the new Transport Hub 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Page 28
Slide 29: Our continuing journey
Our continuing Financial Outlook Highlights 2021 journey performance Annual Results Page 29
Slide 30: Exciting fashion outlet centre under construction
Exciting fashion outlet centre under 2021 Annual Results construction Highlights performance Financial Our continuing journey Outlook Illustrative only, actual layout will vary 100+ stores m2 23,000+ Page 30
Slide 31: Sustainability is central to who we are
Sustainability is central to who we are Purpose Place People Community Kaupapa Kaitiakitanga Whānau Hapori 85% Net Zero 40 | 40 | 20 40% Customers rate their overall 90% reduction in scope 1 and 2 Gender balance across Auckland Of employees participating in experience as ‘excellent’ or carbon emissi
Slide 32: Re-energising the airport with solar
Re-energising the airport with solar 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Artist’s illustration Auckland Airport is looking skywards as we take our first steps to generate onsite renewable energy, with plans for rooftop solar systems atop two of our new
Slide 33: Continuing on our decarbonisation pathway
Continuing on our decarbonisation pathway 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Reducing Auckland Airport’s carbon footprint through the use of electric heat pumps for heating in terminal buildings • Auckland Airport is taking our first steps away from f
Slide 34: Thank you
Thank you 5 a
Slide 35: Appendix
xa a] < 7) Q. 2 <x
Slide 36: Appendix: Underlying profit / (loss) reconciliation
Appendix: Underlying profit / (loss) reconciliation 2022 2021 For the six months ended 31 December ($m) Underlying Underlying Reported profit Adjustments profit / (loss) Reported profit Adjustments profit / (loss) EBITDAFI per income statement 189.0 - 189.0 60.3 - 60.3 Investment property fair value
Slide 37: Important notice
Important notice Introduction for Hamilton Hindin Greene Disclaimer This presentation is given on behalf of Auckland International Airport Limited (NZX: AIA; ASX: AIA; ADR: AUKNY). Information in this presentation: • is provided for general information purposes only, and is not an offer or invitatio
Auckland International Airport — Investor Presentation (April 2023) on 6ix