Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 2021 Earnings Presentation
33 slides from Auckland International Airport's earnings presentation, Feb 18, 2021
Slide 1: Interim Results Presentation
Interim Results Presentation 18 February 2021 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Important notice
Important notice 2021 Interim Results 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 invitation for subscription,
Slide 3: Highlights
Highlights
Slide 4: The past months have been a period of adjustment
The past 6 months have been a period of adjustment 2021 Interim Results We have responded to the demands of the …and have prepared for a recovery in the Highlights COVID-19 environment while taking the opportunity business to upgrade core infrastructure… performance Financial Our continuing journey
Slide 5: Results at a glance
Results at a glance 2021 Interim Results Highlights Revenue Reported profit Passenger Dividend after tax movements performance $131.5m $28.1m 2.8m 0.0cps Financial -64.9% -80.9% -73.4% Our continuing journey Earnings per share 1.91 cps Outlook EBITDAFI Underlying Aircraft Capital 2 loss 1 movements
Slide 6: Impact of travel restrictions felt across the business
Impact of travel restrictions felt across the business 2021 Interim Results Highlights Aeronautical Retail Transport performance Financial $40.3m revenue -73.5% $7.0m income -93.8% $12.5m revenue -63.6% Lower PAX reflecting COVID-19 Majority of international retail closed Lower activity reflecting C
Slide 7: Domestic recovering, but international effectively shut
Domestic recovering, but international effectively shut 2021 Interim Results Monthly passenger numbers Highlights 80.0% 70.0% Passenger movements (6 months to December) performance Monthly PAX as a % of PCP Financial 60.0% 12 50.0% Total PAX (m) in the six months to December 10 40.0% Our continuing
Slide 8: Living with COVID and proposing a managed path out
Living with COVID and proposing a managed path out 2021 Interim Results Played a critical role in managing COVID-19 The path out will need further close coordination Highlights and proposing options for recovery paths across business and government • Close coordination with government, border • Ongo
Slide 9: Financial performance
Financial performance
Slide 10: First underlying loss in the airport's history
First underlying loss in the airport’s history 2021 Interim Results For the six months ended 31 December ($m) 2020 2019 Change Highlights Revenue 131.5 374.7 (64.9%) Expenses7 43.3 95.5 (54.7%) performance Financial Earnings before interest, taxation, depreciation, 88.2 279.2 (68.4%) fair value adju
Slide 11: Lower PAX numbers impacted key income streams
Lower PAX numbers impacted key income streams 2021 Interim Results For the six months ended 31 December ($m) 2020 2019 Change Highlights Airfield income 30.8 60.8 (49.3%) Passenger services charge 9.5 91.1 (89.6%) performance Financial Retail income 7.0 113.6 (93.8%) Car park income 12.5 34.3 (63.6%
Slide 12: Significant cost reductions to reposition the business
Significant cost reductions to reposition the business 2021 Interim Results For the six months ended 31 December ($m) 2020 2019 Change Highlights Staff 21.0 30.6 (31.4%) Asset management, maintenance and airport operations 24.5 42.5 (42.4%) performance Financial Rates and insurance 10.6 8.9 19.1% Ma
Slide 13: Normalised opex down materially
Normalised opex down materially 2021 Interim Results 1H21 v 1H20 operating expenditure Highlights 100.0 95.5 (8.9) 80.0 (8.1) (34%) performance Financial (5.4) (55%) (5.0) 62.6 60.0 NZ$m (5.5) 43.3 Our continuing (14.9) 40.0 (3.8) (0.6) journey 20.0 Outlook - Opex Outsourced Staff Marketing & Utilit
Slide 14: Scaled-back capex focused on asset upgrades
Scaled-back capex focused on asset upgrades 2021 Interim Results Lower aeronautical activity has facilitated the upgrade and Highlights renewal of core assets Historical capital expenditure • Capital expenditure of $93.7 million9 targeted core airfield renewals, the roading network and new property
Slide 15: Significant liquidity available
Significant liquidity available 2021 Interim Results Liquidity of $1.6 billion to support the business Highlights Credit metrics and key lending covenants • No change in debt facilities since 30 June 2020 Covenant Dec-20 Jun-20 • Committed undrawn facility headroom at 31 December Gearing10 ≤ 60% 23.
Slide 16: Our continuing journey
Our continuing journey
Slide 17: Response to COVID-19
Response to COVID-19 Respond Recover Accelerate 2021 Interim Results Having moved quickly to respond to challenging environment that COVID-19 presented, Auckland Highlights Airport is positioning for a recovery in aeronautical activity • Following the outbreak, we immediately revised operational Foc
Slide 18: Positioning for the recovery
Positioning for the recovery Respond Recover Accelerate 2021 Interim Results The low-volume of aeronautical activity has provided a unique Highlights opportunity to accelerate select infrastructure upgrades • With the support of airline partners and other industry stakeholders we’ve successfully com
Slide 19: Positioning for the recovery (cont'd): retail and transport
Positioning for the recovery (cont’d) Respond Recover Accelerate 2021 Interim Results Our retail and transport offering has repositioned to cater to the resumption in domestic travel Highlights Retail Transport 90.0% 80.0% performance Financial Update 70.0% % of PCP month 60.0% 50.0% Our continuing
Slide 20: Positioning for the recovery (cont'd): property
Positioning for the recovery (cont’d) Respond Recover Accelerate 2021 Interim Results Development momentum and quality of tenants provide $116.0m Investment property rent roll Highlights resilience and underpin future income growth • 10.5% increase in rent roll continues to demonstrate the 98.2% Occ
Slide 21: Positioning for the recovery (cont'd): international markets
Positioning for the recovery (cont’d) Respond Recover Accelerate 2021 Interim Results Reposition the business to respond to a recovery Auckland Airport international PAX flows pre-COVID-19 by market15 Highlights in the travel industry when safe to do so 37.3% • While domestic PAX achieved c.65% of F
Slide 22: Establishing a trigger-based capital roadmap
Positioning for the recovery (cont’d) Respond Recover Accelerate 2021 Interim Results Establishing a trigger-based capital roadmap to further invest in infrastructure when conditions Highlights support Key future capacity projects • Flexible, resilient, affordable, and stageable 30-year masterplan r
Slide 23: Supporting our local community
Supporting our local community 2021 Interim Results We are committed to doing our best for our business, our shareholders and also for our local Highlights community • Contributed $356,682 to the Auckland Airport Community Trust performance Financial • Local community focus for the Twelve Days of Ch
Slide 24: Operating sustainably
Operating sustainably 2021 Interim Results Continued strong focus on operating in a sustainable way to create enduring value Highlights • FY20 marked the end of many of the Four pillars of Auckland Airport’s 2030 Sustainability Strategy environmental targets we set in 2013 ✓ nearly doubled targeted
Slide 25: Outlook
Outlook
Slide 26: Outlook: Guidance
Outlook 2021 Interim Results Guidance Highlights • As we look to the remainder of the 2021 financial year, we continue to face considerable uncertainty regarding the timing of the recovery in international travel performance Financial • Despite this uncertainty, we are providing underlying earnings
Slide 27: Questions
Questions
Slide 28: Appendix: Passenger numbers
Appendix: Passenger numbers 2021 Interim Results For the six months ended 31 December 2020 2019 Change Highlights International arrivals 65,210 2,715,217 (97.6%) International departures 88,765 2,574,181 (96.6%) performance Financial International passengers excluding transits 153,975 5,289,398 (97.
Slide 29: Appendix: Aircraft movements and MCTOW
Appendix: Aircraft movements and MCTOW 2021 Interim Results For the six months ended 31 December 2020 2019 Change Highlights Aircraft movements International aircraft movements 6,762 28,616 (76.4%) performance Financial Domestic aircraft movements 37,975 59,974 (36.7%) Total aircraft movements 44,73
Slide 30: Appendix: Associates' performance
Appendix: Associates’ performance 2021 Interim Results For the six months ended 31 December ($m) 2020 2019 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 13.6 29.1 (53.3%) performance Financial EBITDA 9.1 20.4 (55.4%) Underlying Earnings (Auckland Airport share) 0.6 2.7 (77.8%
Slide 31: Appendix: Balance sheet remains strong
Appendix: Balance sheet remains strong 2021 Interim Results As at ($m) Dec-20 Jun-20 Change Highlights Non-current assets 8,433.4 8,448.7 (0.2%) Property, plant and equipment 6,066.5 6,060.8 0.1% performance Financial Investment properties 2,094.0 2,042.7 2.5% Other non-current assets 272.9 345.2 (2
Slide 32: Appendix: Underlying profit / (loss) reconciliation
Appendix: Underlying profit / (loss) reconciliation 2021 Interim Results 2020 2019 Highlights For the six months ended 31 December ($m) Underlying Underlying Reported profit Adjustments profit / (loss) Reported profit Adjustments profit / (loss) EBITDAFI per Income Statement 88.2 - 88.2 279.2 - 279.
Slide 33: Glossary
Glossary 2021 Interim Results ACI Airports Council International AMTN Australian medium term notes ARPS Average revenue per parking space EBITDA Earnings before interest, taxation and depreciation EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in as
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