Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Non-Deal Roadshow (September 2013)
39 slides from Auckland International Airport's roadshow presentation, Sep 6, 2013
Slide 1: Investor Roadshow
Investor Roadshow Auckland International Airport Limited 2 – 6 September 2013
Slide 2: Adrian Littlewood and Simon Robertson
Adrian Littlewood Chief Executive Simon Robertson Chief Financial Officer 2
Slide 3: A quality investment story
Auckland Faster aN Higher Stronger —-_—- 2018 A quality investment story
Slide 4: New Zealand's outlook is lifting
Investor Roadshow September 2013 New Zealand’s outlook is lifting GDP – annual average % growth Country/Region 2014 • New Zealand economy is showing strong signs of China 7.8 growth and positivity – ahead of many OECD New Zealand 3.1 nations. Australia 2.6 US 2.3 • The NZ economy is gaining momentum
Slide 5: Auckland is important for NZ's growth
Investor Roadshow September 2013 Auckland is important for NZ’s growth Auckland is New Zealand’s centre for commercial, industrial, residential and migration growth. Auckland is one of the most culturally diverse cities in the world – almost 40% of the people living in Auckland were born overseas. A
Slide 6: Auckland Airport is a quality asset
Investor Roadshow September 2013 Auckland Airport is a quality asset . . . Auckland Airport provides a fantastic investment opportunity to participate in this growth: • 74% of New Zealand’s visitors arrive or depart from Auckland Airport, and over 90% of long haul visitor arrivals. • Only commercial
Slide 7: A resilient passenger base and strong financial performance
Investor Roadshow September 2013 . . . with a resilient passenger base and strong financial performance • Highest proportion of international passengers (over 53%) of all Australasian airports and second highest number of international passengers – second only to Sydney. • 18 international airlines
Slide 8: A transparent regulatory environment
Investor Roadshow September 2013 A transparent regulatory environment • Dual-till regime with information disclosure regulation: o Aeronautical till: subject to disclosure regulation o Non-aeronautical till: open market competitive forces • New information disclosure regime includes monitoring of se
Slide 9: Strategy for our future
Investor Roadshow September 2013 Strategy for our future 9
Slide 10: We set ourselves ambitious targets
Investor Roadshow September 2013 We set ourselves ambitious targets How we are tracking on the achievement of our previous longer-term aspirational goals: Grow earnings above $150m by FY13 Achieved, FY13 underlying earnings $153.781m Remain #1 in Skytrax World Airports Awards for Australia/Pacific R
Slide 11: We have maintained growth in FY2013
Investor Roadshow September 2013 We have maintained growth in FY2013 Delivered positive FY13 financial results Maintained growth momentum in the business Built strong relationships with tourism industry and customers Ensured the regulatory review of our aeronautical pricing decision reflected our ba
Slide 12: Going forward – Faster, Higher, Stronger
Investor Roadshow September 2013 Going forward – Faster, Higher, Stronger Adopt an ambitious and Strengthen and extend our Continue to improve our Build on our strong innovative approach to help retail, transport and performance by increasing foundations for long-term New Zealand to sustainably acco
Slide 13: Grow Travel Markets: Aviation outlook strengthening
Investor Roadshow September 2013 Grow Travel Markets: Aviation outlook strengthening Recent announcements of growth at Auckland support the view that the aviation market is strengthening: • Emirates upgrade to A380 on Brisbane/Auckland from 2 Oct 2013; • Malaysian Airlines increase from 6 services p
Slide 14: Grow Travel Markets: Lifting industry ambition
Investor Roadshow September 2013 Grow Travel Markets: Lifting industry ambition • NZ has an opportunity to capture a larger share of the fast growing Asia-Pacific aviation market. • Aligning industry on opportunities is a key part of our “Ambition 2020: High Opportunity Target”. • We are working wit
Slide 15: Grow Travel Markets: China Plan
Investor Roadshow September 2013 Grow Travel Markets: China Plan Our strategic review identified that while the China market was growing significantly there are issues with the value proposition for industry participants (airlines, hotels, tourism operators). However, at Auckland Airport, Chinese re
Slide 16: Strengthening our consumer business: Retail
Investor Roadshow September 2013 Strengthening our consumer business: Retail • International terminal development has boosted retail revenue in all areas: o Duty Free (arrivals and departures) o Food and Beverage o Specialty stores • New Zealand has one of the largest duty free allowance in the worl
Slide 17: Strengthening our consumer business: Hotels
Investor Roadshow September 2013 Strengthening our consumer business: Hotels • Auckland Airport has 100% ownership of the Ibis Budget 2+ star hotel and 20% ownership in 4+ star Novotel hotel joint venture situated next to the international terminal in Auckland. • Occupancy growing in FY13: – Novotel
Slide 18: Strengthening our consumer business: Transport
Investor Roadshow September 2013 Strengthening our consumer business: Transport Car park product offering at Auckland Airport International Domestic Park & Ride Terminal Terminal 2,974 public parking 2,705 public bays 650 parking bays bays In addition, there are 2,513 staff car parks across domestic
Slide 19: Be fast, efficient & effective: Collaboration
Investor Roadshow September 2013 Be fast, efficient & effective: Collaboration • Successfully managing airport operations requires pro-active collaboration, data sharing and real- time information. • We are investing in systems to leverage more from collaboration with Airport Operating Systems (AOS)
Slide 20: Invest for future growth: The potential of the Business District
Investor Roadshow September 2013 Invest for future growth: The potential of the Business District 20
Slide 21: Invest for future growth: Building more rent roll
Investor Roadshow September 2013 Invest for future growth: Building more rent roll • The Auckland property market is recovering after a subdued 5 years and we are starting to see more active enquiry and demand. • We are striving to change the perception of Auckland Airport as a location to strengthe
Slide 22: Invest for future growth: Masterplanning
Investor Roadshow September 2013 Invest for future growth: Masterplanning • Refurbishment of the current domestic terminal is underway to provide improved gate access, baggage collection, faster security screening, a new regional lounge and two new air bridges. • Our long term future requires planni
Slide 23: FY2013 Financial Results
Auckland Faster aN Higher Stronger —-_—- 2018 FY2013 Financial Results
Slide 24: Positive FY13 outcomes
Investor Roadshow September 2013 Positive FY13 outcomes Reported net profit after tax – up 25.1% $177.967m Positive outcomes achieved, notwithstanding some challenges to the growth momentum: Underlying profit – up 10.6% • Lapping the RWC period; $153.781m • Loss of Qantas to Los Angeles and Aeroline
Slide 25: Delivering profit growth momentum
Investor Roadshow September 2013 Delivering profit growth momentum 25
Slide 26: Underlying profit: $150m aspiration achieved
Investor Roadshow September 2013 Underlying profit: $150m aspiration achieved Notes: Adjustments between reported earnings and underlying earnings in the 2013 and 2012 financial years include: • We have reversed out the impact of revaluations of investment property in 2013 and 2012. An investor shou
Slide 27: Auckland's international passenger growth building
Investor Roadshow September 2013 Auckland’s international passenger growth building • Exceptional growth in Asian visitor arrivals, with China and Malaysia both recording 26.5% growth compared to 2012. • China is now the second largest source of visitor arrivals after Australia. • Domestic passenger
Slide 28: Auckland's international passenger growth building
Investor Roadshow September 2013 Auckland’s international passenger growth building • After a flat first half with the comparative period including the 2011 Rugby World Cup, passenger growth rebounded in the second half (3.3% growth) to record positive annual growth of 1.7%. 28
Slide 29: Aircraft movements and MCTOW
Investor Roadshow September 2013 Aircraft movements and MCTOW • International aircraft movements and MCTOW affected by the withdrawal of Qantas on Los Angeles and Aerolineas Argentinas on Buenos Aires. • Declines were slightly offset by additional services by China Southern to Guangzhou and Hawaiian
Slide 30: Solid revenue growth
Investor Roadshow September 2013 Solid revenue growth • New aeronautical pricing from 1 July 2013 reshapes aeronautical revenue. • Completed property developments contribute to the 12.5% lift in property rental income. • Additional car park capacity and continued improvements in yield management dri
Slide 31: Investing for long term growth
Investor Roadshow September 2013 Investing for long term growth • Staff costs increased in the year due to long-term incentive bonus accruals based on strong share performance and costs associated with CEO recruitment. • Increase in utility pricing, marine rescue maintenance, technology investments,
Slide 32: Share of profit in NQA climbing
Investor Roadshow September 2013 Share of profit in NQA climbing • Cairns international passengers were stable with increases on routes to China, Japan and Papua New Guinea, offset by some decreases in services to New Zealand and Singapore. • Revenue was boosted by strong retail performance with 14.
Slide 33: NQA milestones: EBITDA AU$75m achieved
Investor Roadshow September 2013 NQA milestones: EBITDA AU$75m achieved • Pleasing to achieve the key EBITDAFI target of AU$75 million, an increase of 66.8% over the 2010 financial year result of AU$45 million. • The proposed Aquis resort development at Cairns highlights the potential of the destina
Slide 34: Queenstown passenger growth continues
Investor Roadshow September 2013 Queenstown passenger growth continues • Additional services on domestic and international routes by Air New Zealand and Jetstar have increased capacity and fuelled growth. • Financial performance was strong across aeronautical, property and retail sectors. • Net prof
Slide 35: Balance Sheet remains in great shape
Investor Roadshow September 2013 Balance Sheet remains in great shape • Interest expense in the year was $66.689 million, down $2.269 million (3.3%), driven by lower interest cost and higher capitalised interest. • Auckland Airport issued a 7 year New Zealand bond in December 2012 at 4.73%. • Credit
Slide 36: Investors rewarded for business performance
Investor Roadshow September 2013 Investors rewarded for business performance • Strong share price growth has rewarded shareholders with outstanding returns for the past four years. • Following last year’s change in dividend policy to 100% of net profit after tax (excluding unrealised gains and losse
Slide 37: Historical performance
Investor Roadshow September 2013 Historical performance 2013 2012 2011 2010 2009 Auckland Airport passenger summary Domestic Passengers 6,760,537 6,236,915 6,040,265 6,032,410 5,598,077 International Passengers (incl. transits) 7,755,678 7,769,207 7,392,045 7,415,792 7,359,611 Total Passengers 14,51
Slide 38: Faster, Higher, Stronger: The outlook for 2014
Investor Roadshow September 2013 Faster, Higher, Stronger: The outlook for 2014 • Despite challenges in some source markets from slowing growth, we see the aviation market solidifying recent gains and we are therefore optimistic about the 2014 financial year. • We expect 2014 net profit after tax (e
Slide 39: Questions?
Auckland Faster aN Higher Stronger —-_—- 2018 Questions?
Auckland International Airport — Non-Deal Roadshow (September 2013) on 6ix