Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2022 Earnings Presentation
38 slides from Auckland International Airport's earnings presentation, Aug 18, 2022
Slide 1: Annual Results Presentation
Annual Results Presentation 18 August 2022 Carrie Hurihanganui Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Important notice
Important notice 2022 Annual 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: Auckland Airport is about connections
Our continuing Financial Outlook Highlights 2022 journey performance 3 Annual Results Auckland Airport is about connections…
Slide 4: Highlights
Highlights
Slide 5: Results at a glance
Results at a glance 2022 Annual Results Highlights Revenue Reported profit Passenger Operating after tax movements cashflow performance $300.3m $191.6m 5.6m $101.2m Financial 7% (59)% (13)% 67% Our continuing journey Earnings per share 13.0 cps Outlook EBITDAFI Underlying Aircraft Capital loss1 move
Slide 6: 2022 reflects a recovery in key business segments
2022 reflects a recovery in key business segments 2022 Annual Results Highlights Aeronautical Retail Transport performance Financial $94.7m revenue 7% $22.7m income 28% $26.2m revenue (9)% COVID-19 restrictions impacted Recovering retail environment: Continued impact from Auckland Our continuing act
Slide 7: AKL is open with passenger numbers recovering
AKL is open with passenger numbers recovering 2022 Annual Results The Delta and subsequent Omicron outbreaks had a significant impact on aeronautical activity for much of the year. With the removal of almost all of New Zealand’s travel restrictions, we have seen a gradual recovery in both domestic H
Slide 8: We are focused on positioning for the future
We are focused on positioning for the future 2022 Annual Results Reconnecting New Zealand to the Disciplined investment in aeronautical Reopening of commercial businesses Highlights world through the return of infrastructure and commercial property to cater for the increased activity international c
Slide 9: Financial performance
Financial performance
Slide 10: Passenger numbers
Passenger numbers 2022 Annual Results Pre-COVID For the year ended 30 June 2022 2021 Change Highlights 20195 International arrivals 596,104 261,469 128% 5,284,325 International departures 656,657 297,592 121% 5,222,335 performance Financial International passengers excluding transits 1,252,761 559,0
Slide 11: Aircraft movements and MCTOW
Aircraft movements and MCTOW 2022 Annual Results Pre-COVID For the year ended 30 June 2022 2021 Change Highlights 2019 Aircraft movements International aircraft movements 18,315 15,102 21% 57,084 performance Financial Domestic aircraft movements 67,748 83,582 (19)% 121,703 Total aircraft movements 8
Slide 12: Travel restrictions drove underlying loss
Travel restrictions drove underlying loss 2022 Annual Results Restated Highlights For the year ended 30 June ($m) 2022 20216 Change Revenue 300.3 281.1 7% Expenses7 155.8 110.0 42% performance Financial Earnings before interest, taxation, depreciation, 144.5 171.1 (16)% fair value adjustments and in
Slide 13: Investment Property the mainstay, plus PAX growth
Investment Property the mainstay, plus PAX growth 2022 Annual Results For the year ended 30 June ($m) 2022 2021 Change Highlights Airfield income 60.9 64.0 (5)% Passenger services charge 33.8 24.2 40% performance Financial Retail income 22.7 17.8 28% Car park income 26.2 28.7 (9)% Our continuing Inv
Slide 14: Operating costs
Operating costs 2022 Annual Results Restated For the year ended 30 June ($m) Highlights 2022 2021 Change Staff 50.0 45.6 10% Asset management, maintenance and airport operations 66.7 53.4 25% performance Financial Rates and insurance 21.0 20.8 1% Marketing and promotions 1.4 1.0 40% Professional ser
Slide 15: Operating costs increasing as activity returns
Operating costs increasing as activity returns 2022 Annual Results 2022 operating expenditure bridge Highlights 180 155.8 20.7 6.9 160 133.1 (2.5) (2.3) 140 16.9 4.2 2.0 performance 110.0 Financial 120 NZ$m 100 80 Our continuing journey 60 40 20 Outlook - Opex FY21 reversal - FY21 reversal - FY21 Go
Slide 16: Capital expenditure, building for the future
Capital expenditure, building for the future 2022 Annual Results Balanced investment across renewals, strategic aeronautical projects and property development Highlights • Capital expenditure in the year totalled a net $253.1 million 9 focused on upgrades to the roading network, core infrastructure
Slide 17: Capital management and liquidity
Capital management and liquidity 2022 Annual Results Prudent capital management as the business positions for Credit metrics and key lending covenants Highlights the recovery in aviation For the year ended 30 June Covenant 2022 2021 • Total drawn debt of $1,476.6 million, an increase of 6% or Gearin
Slide 18: Equity book value continued to grow
Equity book value continued to grow 2022 Annual Results Restated Highlights For the year ended 30 June ($m) 2022 2021 Change Non-current assets 10,078.1 9,651.5 4% Property, plant and equipment 6,986.1 6,826.5 2% performance Financial Investment properties 2,897.4 2,641.4 10% Other non-current asset
Slide 19: Our continuing journey
Our continuing journey
Slide 20: The recovery in travel is underway
The recovery in travel is underway Respond Recover Accelerate 2022 Annual Results International seat capacity serving Auckland is expected to significantly increase over the remainder of the calendar year Highlights as airlines restart previous Auckland services and launch new routes AKL internation
Slide 21: Reconnecting New Zealand to the world
Reconnecting New Zealand to the world Respond Recover Accelerate 2022 Annual Results 17 airlines connected Auckland Airport with 28 destinations across the region at 30 June 2022. With the restart of Highlights services and the launch of new routes, 23 airlines will connect Auckland Airport with 37
Slide 22: Long-term fundamentals remain strong
Long-term fundamentals remain strong Respond Recover Accelerate 2022 Annual Results Aeronautical capacity is expected to increase over the remainder of the year as airlines restart previous services and Highlights launch new routes. However, the new world of travel presents opportunities and challen
Slide 23: Design of the integrated terminal is progressing well
Design of the integrated terminal is progressing well 2022 Annual Results Significant work undertaken in the year on the design of a new domestic terminal that will be tightly integrated with the Highlights existing international building • Final stages of design and on-site enabling works for: perf
Slide 24: Reopening Retail as demand recovers
Reopening Retail as demand recovers Respond Recover Accelerate 2022 Annual Results The airport retail proposition is gradually reopening in line with Highlights growing international passenger numbers • Retail income of $22.7 million was up 28% on the prior year following the international retail of
Slide 25: Transport business recovering well
Transport business recovering well Respond Recover Accelerate 2022 Annual Results With a full suite of products open and an increased demand for self-drive and premium products, Transport is outpacing Highlights the passenger recovery Domestic parking exits relative to passengers • Transport revenue
Slide 26: A new transport hub at the front door of the terminals
A new transport hub at the front door of the terminals 2022 Annual Results Construction of a new transport hub Highlights is underway that will provide improved passenger amenity, connectivity and capacity for the integrated terminal precinct14 • The new transport hub is planned to integrate perform
Slide 27: Investment Property
Investment Property 2022 Annual Results Development momentum and quality of tenants continue to provide Portfolio value $2.9bn Highlights income growth and income diversification • 9% increase in rent roll and a 10% increase in the portfolio value in the year 522,588m2 Portfolio net lettable area pe
Slide 28: Delivering on our sustainability agenda
Delivering on our sustainability agenda 2022 Annual Results Good progress against all our eight material issues, which are aligned to the UN Sustainable Development Goals Highlights Purpose Place People Community Kaupapa Kaitiakitanga Whānau Hapori performance Financial Material issues: Material iss
Slide 29: Clear path to net zero established
Clear path to net zero established 2022 Annual Results Auckland Airport recognises that climate change and the role carbon plays is one of the most significant issues facing Highlights the global aviation industry. As a result, climate change considerations are integrated across all elements of stra
Slide 30: Accelerating into the recovery…and the future
Accelerating into the recovery…and the future Respond Recover Accelerate 2022 Annual Results Re-establishing our aeronautical Driving the recovery in our Disciplined investment in Highlights network and supporting the recovery commercial business infrastructure and commercial in travel opportunities
Slide 31: Outlook
Outlook
Slide 32: Aeronautical pricing
Aeronautical pricing 2022 Annual Results Consultation with airlines on aeronautical prices for PSE4 is now Highlights underway 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 considering the “
Slide 33: Outlook: Guidance
Outlook 2022 Annual Results Guidance Highlights • As we look to the 2023 financial year, we continue to face uncertainty regarding the pace of recovery of international travel • Reflecting this, Auckland Airport is providing the following guidance performance Financial for FY23 of: ‒ underlying earn
Slide 34: Questions
Questions
Slide 35: Appendix: Associates' performance
Appendix: Associates’ performance 2022 Annual Results For the year ended 30 June ($m) 2022 2021 Change Highlights Queenstown Airport (24.99% ownership) Total Revenue 26.8 27.8 (4)% performance Financial EBITDA 14.0 17.1 (18)% Underlying Earnings (Auckland Airport share) 0.3 0.4 (25)% Domestic Passen
Slide 36: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2022 Annual Results 2022 2021 Restated For the year ended 30 June ($m) Reported Adjustments Underlying Reported Adjustments Underlying Highlights profit profit profit profit EBITDAFI per Income Statement19 144.5 - 144.5 171.1 - 171.1 Investment property fai
Slide 37: Appendix: Normalised opex reconciliation
Appendix: Normalised opex reconciliation 2022 Annual Results For the year ended 30 June ($m) Restated Highlights 2022 2021 Change Reported operating expenses 155.8 110.0 42% Reversal of prior period fixed asset write-offs, impairments and termination costs - 16.9 (100%) performance Financial Fixed a
Slide 38: Glossary
Glossary 2022 Annual Results AMTN Australian medium term notes ARPS Average revenue per parking space BARNZ Board of Airline Representatives New Zealand Inc. CPS Cents per share EBIT Earnings before interest and taxation, EBITDA Earnings before interest, taxation, depreciation and amortisation EBITD
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