Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (November 2021)
37 slides from Auckland International Airport's debt investor presentation, November 2021
Slide 1: Investor Update: Debt Capital Markets
Investor Update Debt Capital Markets November 2021
Slide 2: Important Notice
Important Notice November Investor Update Disclaimer Auckland International Airport Limited (Auckland Airport) is considering an offer of fixed rate bonds maturing in November 2026 to New Zealand retail investors and institutional investors. No money is currently being sought and no bonds can be app
Slide 3: Agenda
Agenda 1. Overview 2. Our continuing journey 3. Financial information Appendices
Slide 4: Overview
Overview
Slide 5: Diverse and complementary business activities
Company Overview 2021 November Investor Update Diverse and complementary business activities Company Overview Aeronautical Retail Transport Our continuing journey Information Financial Appendices Investment Property Hotels Queenstown Airport 5
Slide 6: Auckland Airport, a gateway to New Zealand
Auckland Airport, a gateway to New Zealand… 2021 November Investor Update Extensive domestic aeronautical network pre-COVID1 Company Overview • New Zealand’s largest commercial airport serving the country’s largest city • Pre-COVID, Auckland Airport had an extensive Our continuing journey domestic n
Slide 7: …and New Zealand to the world
…and New Zealand to the world 2021 November Investor Update Company Overview Our continuing journey Information Financial Appendices Pre-COVID, gateway for New Zealand to the world: • connecting New Zealand to 45 international destinations across Asia, the Pacific and the Americas • 75% of all inter
Slide 8: COVID has had a significant impact on the business
COVID has had a significant impact on the business 2021 November Investor Update Whilst positive to see a recovery in passenger numbers as travel restrictions eased, total passenger Company Overview numbers remain well below pre-COVID levels Auckland Airport total annual passenger movements Monthly
Slide 9: We have taken decisive action to respond to COVID-19
We have taken decisive action to respond to COVID-19 2021 November Investor Update Decisive action taken to mitigate the impact of COVID Company Overview • In 2020 Auckland Airport outlined a three-stage • Having moved quickly to respond to the challenging plan Respond, Recover and Accelerate for it
Slide 10: We haven't wasted a day getting after what matters
We haven't wasted a day getting after what matters 2021 November Investor Update Safe management of border and Investing in core asset resilience Stabilising existing commercial Company Overview leading the design of future and developing a new trigger- business and establishing new border models ba
Slide 11: Credit highlights
Credit highlights 2021 November Investor Update Key gateway to New Zealand Expected to benefit from COVID Significant commercial property Company Overview recovery portfolio Monthly PAX (% of FY19) Rental income 120 120% Our continuing International (incl Transits) 100% 100 journey Domestic 80% 80 6
Slide 12: Our continuing journey
Our continuing journey
Slide 13: Auckland Airport's COVID strategy
Auckland Airport’s COVID strategy 2021 November Investor Update Unprecedented reduction in passengers has impacted the entire industry Company Overview • The global spread of COVID and the subsequent imposition of Phases of Auckland Airport’s COVID strategy travel restrictions has had a profound imp
Slide 14: First line of defence
First line of defence 2021 November Investor Update The airport’s primary objective throughout the pandemic has been on ensuring the safe and secure operation of our facility to protect New Zealand’s border Company Overview • Close coordination with government, border agencies and airlines to reinst
Slide 15: Continuing to invest in critical infrastructure
Continuing to invest in critical infrastructure 2021 November Investor Update The low-volume of aeronautical activity continues to provide a unique opportunity to accelerate critical Company Overview infrastructure upgrades whilst minimising disruption • Activity during 2021 focused on the upgrade a
Slide 16: Four key projects underway whilst four remain on hold
Four key projects underway whilst four remain on hold 1 2 4 3 16
Slide 17: Artist impression of the new domestic terminal
Artist impression of the new domestic terminal 2021 November Investor Update Company Overview Our continuing journey Information Financial Appendices 17
Slide 18: A new transport hub at the front door of the terminals
A new transport hub at the front door of the terminals 2021 November Investor Update A new transport hub will provide improved passenger amenity, connectivity and capacity for the Company Overview integrated terminal precinct • A new transport hub is planned to integrate public transport with commer
Slide 19: Portfolio Overview
Portfolio Overview Portfolio Development Performance $117m +50 A Grade Rent Roll Tenancies created since 2015 Tenant Covenants 99% 75% 13% Occupancy Of developments pre- Rent Roll CAGR committed (5 years) $2.6bn Portfolio Value $160m 20% of development pre- Portfolio Value CAGR commitments (5 Years)
Slide 20: Exciting fashion outlet centre planned for the precinct
Exciting fashion outlet centre planned for the precinct 2021 November Investor Update Company Overview Our continuing journey Information Financial Appendices Illustrative only, actual layout will vary 100+ stores m2 23,000+
Slide 21: Operating sustainably to create enduring value
Operating sustainably to create enduring value 2021 November Investor Update As a long-term multi-generational business, it is natural for us to take a long-term approach to our place Company Overview in the world, the New Zealand economy and the local environment and community in which we operate •
Slide 22: A pathway to Net Zero
A pathway to Net Zero 2021 November Investor Update For the first time, we have set a pathway to reach Net Zero Carbon Emissions Company Overview scope 1 & 2 carbon emissions by 2030 7,000 6,000 • This means reducing our scope 1 and 2 emissions as far as is 5,000 feasible, which will be achieved by:
Slide 23: Our long-term ambitions
Our long-term ambitions 2021 November Investor Update Purpose Place People Community Company Overview Kaupapa Kaitiakitanga Whānau Hapori 85% Net Zero 40 | 40 | 20 40% Our continuing journey Of customers rate their Scope 1 and 2 carbon Gender balance across Of employees participating in overall expe
Slide 24: Positioning for a post-COVID world
Positioning for a post-COVID world 2021 November Investor Update Re-establishing our aeronautical Supporting the recovery in travel Driving the recovery in our Company Overview network and trade for New Zealand commercial business Our continuing journey Information Financial Appendices INSERT IMAGE
Slide 25: Positioning for a post-COVID world
Positioning for a post-COVID world 2021 November Investor Update Long-term fundamentals remain Company Overview Drivers Enablers Attractiveness of New Zealand Our continuing journey Information Financial Pent up demand for travel and a growing middle class Vaccine rates across the region increasing
Slide 26: Financial information
Financial information
Slide 27: Recent performance impacted by travel restrictions
Recent performance impacted by travel restrictions 2021 November Investor Update Company Overview For the year ended 30 June 2021 2020 2019 2018 2017 $m Revenue 281.1 567.0 743.4 683.9 629.3 Our continuing Expenses 109.6 306.6 188.6 177.5 156.2 journey Earnings before interest, taxation, depreciatio
Slide 28: Property growth, other segments declined
Property growth, other segments declined 2021 November Investor Update Company Overview For the year ended 30 June 2021 2020 2019 2018 2017 $m Airfield income 64.0 100.6 127.6 122.1 119.6 Our continuing Passenger services charge 24.2 133.0 185.1 179.1 174.3 journey Retail income 17.8 141.5 225.8 190
Slide 29: Balance sheet remains strong
Balance sheet remains strong 2021 November Investor Update Company Overview As at 30 June 2021 2020 2019 2018 2017 $m Cash 79.5 765.3 37.3 106.7 45.1 Our continuing Trade and other receivables 25.4 34.7 69.0 71.5 55.5 journey Other current assets 20.9 37.0 - 0.2 3.4 Current assets 125.8 837.0 106.3
Slide 30: Credit metrics and key lending covenants
Credit metrics and key lending covenants 2021 November Investor Update Strong credit metrics with support from lenders Company Overview • Waivers for any interest coverage and gearing For the year ended 30 June Covenant 2021 2020 covenant breaches until 31 December 2021 Gearing1 ≤ 60% 15.3% 23.5% (i
Slide 31: Capital management and liquidity
Capital management and liquidity 2021 November Investor Update Liquidity to support the business Company Overview • Strong liquidity position with $831.7m of committed undrawn facilities and $79.5m in available cash available at 30 June 2021 • Extended nearly $700m of bank facilities maturing over J
Slide 32: Questions
Questions
Slide 33: Reference material and further details
Reference material and further details 2021 November Investor Update Reference material Company Overview Auckland Airport website: https://corporate.aucklandairport.co.nz/ Our continuing Debt investor inquiries journey Campbell De Morgan, Treasury Specialist DDI: +64 27 478 3243 Information Financia
Slide 34: Appendices
Appendices
Slide 35: Board of directors
Board of directors 2021 November Investor Update Company Overview Our continuing journey Information Financial Dr Patrick Strange Tania Simpson Liz Savage Christine Spring Chair Director Director Director Appendices Julia Hoare Mark Binns Dean Hamilton Director Director Director 35
Slide 36: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2021 November Investor Update 2021 2020 Company Overview For the year ended 30 June ($m) Reported Adjustments Underlying Reported Adjustments Underlying profit profit profit profit EBITDAFI per Income Statement1 171.5 - 171.5 260.4 - 260.4 Investment proper
Slide 37: Glossary
Glossary November Investor Update COVID COVID-19 EBITDA Earnings before interest, taxation and depreciation EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates FMCA Financial Markets Conduct Act 2013 JV Joint venture NPAT Net profit after t
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