Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Virtual Investor Conference (November 2014)
28 slides from Auckland International Airport's conference presentation, November 2014
Slide 1: Company Overview
Auckland International Airport Limited November 2014 Company Overview 1
Slide 2: Important Disclaimer
Important Disclaimer This presentation has been prepared by Auckland Airport. It does not purport to be complete or comprehensive. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contain
Slide 3: International Gateway to New Zealand
ADR American Depositary Receipt Programme International Gateway to New Zealand • New Zealand is an island nation and arrival by road and rail is impossible. Sea transport is unattractive for most overseas travellers. • Auckland Airport is the only commercial airport in New Zealand’s largest city. •
Slide 4: Aeronautical Assets
ADR American Depositary Receipt Programme Aeronautical Assets • Single 3,866 yards (3,535m) runway and associated taxiways and aprons, able to accommodate all current aircraft types, including A380 and Boeing 787 Dreamliner. • Main taxiway can function as a standby runway in emergencies. • Future No
Slide 5: Market Capitalisation US$3,596m
ADR American Depositary Receipt Programme Overview Register Composition Market Capitalisation US$3,596m * Cost of Total Returns to Share Price Share Price Capital Cancelled Total Shareholder Opening Closing Dividend Return Shares Return Return Shareholders $ $ cps cps cps $ % 1 July 2010 to 30 June
Slide 6: Overview
ADR American Depositary Receipt Programme Overview • Auckland International Airport Limited is listed on the NZX and ASX. Auckland International Airport Limited • Acquired 24.55% ownership of North Queensland Airports (Cairns and Mackay) Auckland Auckland Airport International in January 2010. Auckl
Slide 7: Passengers and Aeronautical Revenue
ADR American Depositary Receipt Programme Passengers and Aeronautical Revenue • Auckland airport earns aeronautical revenue through Landing Charges and Passenger Service Charges. • Landing charges are based on the size of aircraft using the runway. Landing charges are based on the maximum certified
Slide 8: Aeronautical Regulatory Environment
ADR American Depositary Receipt Programme Aeronautical Regulatory Environment • Dual-till regime under the Commerce Act 1986 (NZ) with information disclosure regulation. • Aeronautical is subject to disclosure regulation. • Non-aeronautical till faces open market competitive forces. • Airport Author
Slide 9: Positioning for our future
ADR American Depositary Receipt Programme Positioning for our future Grow travel markets • Unique approach to driving airline capacity. • AIA does not discount landing charges but rather offers cooperative marketing campaigns to help drive traffic on new routes as well as wider marketing initiatives
Slide 10: Chinese travellers are a key target market
ADR American Depositary Receipt Programme Chinese travellers are a key target market Retail Spend Rates By Nationality • Chinese passengers (NZ resident + non-resident) represent 7% of all traffic, yet 14% of international terminal retail spend. • Non-resident Chinese spend rate is +166% above the o
Slide 11: The Retail Equation
ADR American Depositary Receipt Programme The Retail Equation Passengers x (Penetration (%) x Conversion (%)) x ATV ($) = Sales ($) x Yield (%) = Revenue ($) # of pax # of Average entering a purchases Transaction store made Value Passenger Spend Rate (PSR) Income Per Passenger (IPP) 11
Slide 12: Concept design for international passenger area
ADR American Depositary Receipt Programme Concept design for international passenger area 12
Slide 13: Car Parking Business
ADR American Depositary Receipt Programme Car Parking Business • As at 1 June 2014, the Airport had 8,802 parking spaces. • In FY13 Auckland Airport moved some airline and other staff car parking from the domestic terminal to the Park & Ride facility, providing more car parks close to the terminal f
Slide 14: Property Business
ADR American Depositary Receipt Programme Property Business • Developments comprise all types of land use except permanent residential and heavy industrial. The Auckland Airport business district (“The District”) has been divided into seven precincts Historic WALT 4.6 reflecting logical groupings of
Slide 15: Significant Land Holdings
ADR American Depositary Receipt Programme Significant Land Holdings • Auckland Airport owns approximately 3,707 acres (1,500 hectares) of freehold land. • Land value NZ$2,650 million as at 30 June 2014 (excluding Investment Property), considerably more than total debt. • The land holding provides op
Slide 16: Hotels
ADR American Depositary Receipt Programme Hotels • Auckland Airport completed its first Hotel in May 2011. • The Novotel is a 263 room (4+ star) hotel. • The hotel was a joint venture with Tainui Holdings and Accor Hospitality with Auckland Airport holding a 20% stake. • Auckland Airport also collec
Slide 17: Associates – Queenstown Airport
ADR American Depositary Receipt Programme Associates – Queenstown Airport • Queenstown Airport is the gateway airport to New Zealand’s adventure capital, a major tourist destination and the fourth largest international airport in New Zealand. It is the fastest growing airport in New Zealand and is p
Slide 18: Associates – North Queensland Airports
ADR American Depositary Receipt Programme Associates – North Queensland Airports • Cairns Airport is the gateway airport to Tropical North Queensland, a major Australian leisure destination. Two world heritage listed attractions, the Great Barrier Reef and Wet Tropics Rainforests are accessed from C
Slide 19: Performance
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Slide 20: Five year results overview
ADR American Depositary Receipt Programme Five year results overview Auckland International Airport Group 30 Jun 2014 30 June 2013 30 June 2012 30 June 2011 30 June 2010 30 June 2009 (NZ$’000) Revenue 475,814 448,458 426,813 397,723 363,113 368,295 Expenses 120,646 117,624 107,524 99,494 86,802 88,8
Slide 21: Diverse revenue base
ADR American Depositary Receipt Programme Diverse revenue base Revenue 12 months to 30 June 2014 $m Airfield income 87.607 Passenger services charges (PSC) 131.552 Retail income 127.073 Car park income 42.815 Rental income 59.260 Rates recoveries 4.626 Interest income 2.002 Other income 20.879 Total
Slide 22: Cost control provides operating leverage
ADR American Depositary Receipt Programme Cost control provides operating leverage Expenses 12 months to 12 months to Change 30 June 2014 30 June 2013 % $m $m Staff 42.502 39.953 6.4 Asset management, maintenance and airport operations 40.310 39.607 1.8 Rates and insurance 10.081 9.707 3.9 Marketing
Slide 23: Capital structure efficiency
ADR American Depositary Receipt Programme Capital structure efficiency • Targeting stable A- S&P credit rating. • In August 2012 the dividend pay-out ratio was increased from 90% to 100% of underlying profit after tax. • Capital return of $454 million paid to shareholders in April 2014. Credit metri
Slide 24: Our future
Our future 24
Slide 25: Guidance
ADR American Depositary Receipt Programme Guidance • Allowing for the increased interest costs from the $454 million capital return we expect FY15 underlying net profit after tax (excluding any fair value changes and other one off items) to be between $160 million and $170 million. • Due to the 10%
Slide 26: Our 30 Year Vision
ADR American Depositary Receipt Programme Our 30 Year Vision Capacity for growth to 2044 and beyond 26
Slide 27: Our future – 30-year vision
ADR American Depositary Receipt Programme Our future – 30-year vision • Auckland Airport has over 3,707 acres (1,500 hectares) of land, ensuring land availability for future development. • The 30 year vision will be built in stages, flexible, business case lead, affordable and triggered by ongoing g
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