Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (October 2022)
34 slides from Auckland International Airport's debt investor presentation, October 2022
Slide 1: Auckland Airport Update for debt investors
Confidential Auckland Airport Update for debt investors October 2022 Prepared by: Strategy, Planning & Performance
Slide 2: Important Notice
Confidential Important Notice Debt investor update Disclaimer This presentation is for preliminary information purposes only, does not constitute a recommendation by Auckland International Airport Limited (Auckland Airport), Bank of New Zealand (Joint Lead Manager), Westpac Banking Corporation (Join
Slide 3: Agenda
Confidential Agenda 1. Company overview 2. Our continuing journey 3. Financial information Appendices Page 3
Slide 4: Company overview
Confidential Company overview Page 4
Slide 5: Auckland Airport, a gateway to New Zealand
Confidential 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 Company Overview Kiwis from Kaitaia to Invercargill • New Zealand’s largest commercial airport serving the country’s
Slide 6: Connecting New Zealand to the world
Confidential …and connecting New Zealand to the world 17 airlines connected Auckland Airport with 28 destinations across the region at 30 June 2022. With the restart of services and the Company Overview launch of new routes, 23 airlines will connect Auckland Airport with 35 destinations across the M
Slide 7: The recovery in travel is underway
Confidential The recovery in travel is underway International seat capacity serving Auckland is expected to significantly increase over the remainder of the calendar year as Company Overview airlines restart previous Auckland services and launch new routes AKL international seat capacity (000’s) Ann
Slide 8: AKL is open with passenger numbers recovering
Confidential AKL is open with passenger numbers recovering The Delta and subsequent Omicron outbreaks had a significant impact on aeronautical activity for much of the year. With the Company Overview removal of almost all of New Zealand’s travel restrictions, we have seen a strong recovery in both d
Slide 9: Results at a glance
Confidential Results at a glance Company Overview Revenue Reported profit Passenger Operating after tax movements cashflow Our continuing $300.3m $191.6m 5.6m $101.2m journey 7% (59)% (13)% 67% Information Earnings per share Financial 13.0 cps Appendices EBITDAFI Underlying Aircraft Capital loss1 mo
Slide 10: Credit highlights
Confidential Credit highlights Key gateway to Benefiting from the recovery Significant commercial Company Overview New Zealand post COVID-19 property portfolio 110% 120 100% 90% 100 Our continuing 80% Monthly PAX as a % of FY19 70% journey Rental income $m 60% 80 50% 40% 30% 60 20% 10% 40 Informatio
Slide 11: Our continuing journey
Confidential Our continuing journey Page 11
Slide 12: Diverse and complementary business activities
Confidential Our continuing journey Diverse and complementary business activities Company Overview Aeronautical Retail Transport Our continuing journey Information Financial Appendices Investment Property Hotels Queenstown Airport Page 12
Slide 13: Four key projects underway whilst four remain on hold
Confidential Four key projects underway whilst four remain on hold 2021 Annual Results Highlights performance Financial Our continuing journey Outlook 13 Page 13
Slide 14: Artist impression of the new domestic terminal
Confidential Artist impression of the new domestic terminal 2021 Annual Results Highlights performance Financial Our continuing journey Outlook 14 Page 14
Slide 15: Artist impression of the new Transport Hub
Confidential Artist impression of the new Transport Hub 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Page 15
Slide 16: Driving the recovery in our consumer business
Confidential Driving the recovery in our consumer business ANZ Investor Day Page 16 16
Slide 17: Exciting fashion outlet centre planned
Confidential Exciting fashion outlet centre planned 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Illustrative only, actual layout will vary 100+ stores m2 23,000+ Page 17
Slide 18: Significant commercial property portfolio continues to grow
Confidential Significant commercial property portfolio continues to grow Notes: 1. Pre-COVID-19, for the 12 months to 31 Dec 2019 Page 18
Slide 19: Sustainability is central to who we are
Confidential Sustainability is central to who we are Company Overview Purpose Place People Community Kaupapa Kaitiakitanga Whānau Hapori Our continuing journey 85% Net Zero 40 | 40 | 20 40% Customers rate their overall experience 90% reduction in scope 1 and 2 carbon Gender balance across Auckland O
Slide 20: Clear path to net zero established
Confidential Clear path to net zero established Auckland Airport recognises that climate change and the role carbon plays is one of the most significant issues facing the global Company Overview aviation industry. As a result, climate change considerations are integrated across all elements of strat
Slide 21: Financial information
Confidential Financial information Page 21
Slide 22: Travel restrictions drove underlying losses in recent years
Confidential Travel restrictions drove underlying losses in recent years For the year ended 30 June Restated Company Overview $m 2022 20214 2020 2019 2018 Revenue 300.3 281.1 567.0 743.4 683.9 Expenses1 155.8 110.0 306.6 188.6 177.5 Our continuing journey Earnings before interest, taxation, deprecia
Slide 23: Investment property the mainstay, plus PAX growth
Confidential Investment property the mainstay, plus PAX growth For the year ended 30 June 2022 2021 2020 2019 2018 Company Overview $m Airfield income 60.9 64.0 100.6 127.6 122.1 Passenger services charge 33.8 24.2 133.0 185.1 179.1 Our continuing journey Retail income 22.7 17.8 141.5 225.8 190.6 Ca
Slide 24: Balance sheet remains strong
Confidential Balance sheet remains strong As at 30 June Restated Company Overview $m 2022 20211 2020 2019 2018 Cash 24.7 79.5 765.3 37.3 106.7 Trade and other receivables 28.5 25.4 34.7 69.0 71.5 Our continuing journey Other current assets 21.6 20.9 37.0 - 0.2 Current assets 74.8 125.8 837.0 106.3 1
Slide 25: Credit metrics
Confidential Credit metrics Prudent capital management as the business positions for the Company Overview recovery in aviation Credit metrics and key lending covenants • Drawn debt of $1,477 million, an increase of 6% or $84 million on June 2021 For the year ended 30 June Key metric 2022 2021 • Comm
Slide 26: Regulatory and aeronautical pricing
Confidential Regulatory and aeronautical pricing Consultation with airlines on aeronautical prices for PSE4 is now underway Company Overview and due to be completed by June 2023 • Prices for FY23-27 (PSE4) will be determined following airline consultation over the remainder of the financial year con
Slide 27: Outlook
Confidential Outlook As we look to the 2023 financial year, we continue to face uncertainty regarding the pace of recovery of international travel. Company Overview Reflecting this, Auckland Airport is providing the following guidance for FY23 • Capital expenditure of between $600 million and $700 m
Slide 28: Long-term fundamentals remain strong
Confidential Long-term fundamentals remain strong Aeronautical capacity is expected to increase over the remainder of the year as airlines restart previous services and launch new Company routes. However, the new world of travel presents opportunities and challenges Overview Drivers of growth Enable
Slide 29: Thank you
Confidential Thank you Page 29
Slide 30: Appendices
Confidential Appendices Page 30
Slide 31: Appendix: Board of directors
Confidential Appendix: Board of directors Company Overview Our continuing journey Information Financial Dr Patrick Strange Tania Simpson Dean Hamilton Christine Spring Chair Director Director Director Appendices Julia Hoare Mark Binns Liz Savage Mark Cairns Director Director Director Director Page 3
Slide 32: Appendix: Management team
Confidential Appendix: Management team Company Overview Our continuing journey Information Financial Carrie Hurihanganui Anna Cassels-Brown Melanie Dooney Jonathan Good André Lovatt Chief Executive GM Operations GM Corporate Services GM Technology and Marketing GM Infrastructure Appendices Phil Neut
Slide 33: Appendix: Underlying profit reconciliation
Confidential Appendix: Underlying profit reconciliation 2022 2021 Restated For the year ended 30 June ($m) Reported Adjustments Underlying Reported Underlying Company Overview Adjustments profit profit profit profit EBITDAFI per Income Statement 1 144.5 - 144.5 171.1 - 171.1 Investment property fair
Slide 34: Glossary
Confidential Glossary Debt investor update Auckland Airport Auckland International Airport Limited COVID COVID-19 EBITDA Earnings before interest, taxation and depreciation EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates JV Joint ventur
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