Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Presentation (May 2010)
35 slides from Auckland International Airport's investor presentation, May 12, 2010
Slide 1: Auckland International Airport Limited Research Analyst Property & Retail Afternoon
Auckland International Airport Limited Research Analyst Property & Retail Afternoon Wednesday 12 May 2010
Slide 2: Agenda
AGENDA • Welcome and Introduction – Simon Robertson (CFO) • Property – Peter Alexander (General Manager, Property) • Retail – Adrian Littlewood (General Manager, Retail) • Q&A • Tour of property and international departures retail space
Slide 3: Non Aeronautical Revenue
Non Aeronautical Revenue • Non-Aeronautical revenue represent Revenue Mix – 6 months 55% of our revenue base. ended Dec 2009 • New property brand and precinct Other 6% plan launched to property market on Carpark Airfield income income 18% 28 April 2010. 9% • Two new hotels in development in the airp
Slide 4: Property Overview
Property Overview Peter Alexander
Slide 5: Analyst Day Presentation – Property
Analyst Day Presentation – Property
Slide 6: Overview
Overview Northern Runway AIAL Boundary Designation Boundary BA Auckland Airport
Slide 7: Property Division Portfolio
Property Division Portfolio Portfolio Composition by Value Land Portfolio 43% Investment Portfolio 57% Investment Portfolio - $313m Land Portfolio - $240m Includes assets classified as both Property, Plant and Equipment (PP&E) and Investment Property (IP). IP valued as at 30 June 2009, PP&E last val
Slide 8: Asset Diversity
Asset Diversity Portfolio by Income – year ended 30 June 2009 Ground Leases = 14.8% Retail = 8.3% Office = 5.9% Industrial = 54.4% Service = 13.4% Hangars = 3%
Slide 9: Auckland Airport Top Customers (by income)
Auckland Airport Top Customers (by income) DFS NEW ZEALAND LIMITED SUPPLY CHAIN SOLUTIONS AIR NATIONAL LTD GEODIS WILSON NEW ZEALAND LTD FEDERAL EXPRESS EXPEDITORS INTERNATIONAL LIMITED UTI NEW ZEALAND LIMITED SPAZIO CASA LIMITED THE WAREHOUSE LIMITED PROGRESSIVE ENTERPRISES LIMITED NZ VAN LINES SHE
Slide 10: Lease Expiry Profile
Lease Expiry Profile Lease Expiry Profie - Annual Income 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2010 2011 2012 2013 2014 2015 2016 Calendar Year
Slide 11: Auckland Airport Property Division Investment
Auckland Airport Property Division Investment** Investment Portfolio Value Net Passing Weighted Land Area (ha) Net Lettable Vacancy (% Vacancy m² ($m)* Income Yield (%) Average Area (NLA) of Annual (NLA) ($m pa) * Lease Term (m²) Income) June 2009 (years) Ground lease 56.34 4.41 7.83% 9.4 34.20 Occu
Slide 12: Land Portfolio
Land Portfolio • Auckland Airport owns over 1,500 hectares of freehold land, of which 443 hectares is potentially available for airport commercial development. • Within the Airport Business District we have created seven specialised precincts that focus on common land use themes. • The seven precinc
Slide 13: Precinct Plan
Precinct Plan Precinct Phan | he HB Cargo soutn GN Te ous HE Coyonetn HE vince WB teria Preccte HE te Commen BA Auckland Airport
Slide 14: Strategy
Strategy • Kick start Development – Maximise Airport proximity advantage – Leverage Airport attributes identify Target Markets • Supply Chain • Knowledge Industries/Travel Rich • Interaction • Tourism, Leisure and Entertainment – Location of choice • Flexibility • Security • Quality – Magnet activit
Slide 15: Focus/Achievements
Focus/Achievements • 263 room 4 star Novotel Hotel Joint Venture • 125 room Formula 1 Hotel • 10 year pre-commitment for Mercedes 3,400 sqm parts warehouse facility • Active Management – high occupancy, maintaining WALT – minimising vacancy periods – restructuring and refocus is delivering benefits.
Slide 16: Outlook
Outlook • Economic recovery still feels fragile • Leasing Market – Cautious attitude amongst business owners, however, have noticed an increase in leasing enquiry over the past 6 months – Total package important – efficiency, investment, incentives – Airport Oaks vacancy 6.0% – Suburban office vacan
Slide 17: Retail & Commercial Overview
Retail & Commercial Overview Adrian Littlewood
Slide 18: In early 2009 we elected a 'proactive landlord' approach to airport retail
In early 2009 we elected a new approach to our airport retail under the banner of ‘proactive landlord’ Strong operational foundation Clearly defined retail experience and standards • Clear understanding of key • Clearly defined customer value drivers and alignment of experience and unifying retail a
Slide 19: Focusing on each of the key drivers of retail performance
At a high level we are focusing on each of the key drivers of retail performance and prioritising activities accordingly Key retail performance drivers Activity prioritised by ability to influence key drivers
Slide 20: As landlord we are in a unique position to drive retailer efficiency
As landlord we are in unique position to help drive retailer efficiency and effectiveness through exploiting rich data Example data sets targeted by Auckland Airport for tracking and analysis Retail sales data by Store traffic counters, category, time of day, dwell time precinct etc measurement Airp
Slide 21: We already have some of the core building blocks in place
We already have some of the core building blocks in place EXAMPLE Auckland Airport’s Advanced Passenger Data System (real time data) • Overall view of passenger flows • System allows user to drill down • User can further drill down into in real time into specific time slots for specific flight to ge
Slide 22: A retailer can drive performance using richer data sets
A retailer can drive performance using richer data sets… Retailer decisions: EXAMPLE PAX Staff Stock Incentives Display Without rich data capability ‘Chinese PAX ‘I think there are ‘I probably should ‘Bonus set at 10% ‘I think I need more more Chinese PAX employ more don’t seem to for achieving buy
Slide 23: The Airport can use this information to drive retailer performance
. . . and the Airport can use this information to drive retailer performance EXAMPLE Example of how AA could use data to manage retailer performance Retailer X Sales Strike Rate Index Report: Morning Session Time 7:00am 8:00am 9:00am 10:00am 11:00am Average Sales Category Strike Rate Product A 0.25
Slide 24: Our proactive landlord model also aims to bring scale to retailers
Our proactive landlord model also aims to bring scale to retailers Tier 1 Retailer Tier 2 Retailer Bespoke support working with their brand Airport driven/funded retail marketing Marketing partners and in line with their promo cycle programme cycles Enhance Tier 1 retailer’s existing Supply airport
Slide 25: We are investing in a world class retail environment
We are investing in a world class retail environment We are here
Slide 26: Phase 1 – Landside and PAX processing
Phase 1 – Landside and PAX processing
Slide 27: Phase 2 – Duty Free
Phase 2 — Duty Free - Asie BAR AB Auckland Airport
Slide 28: Phase 3/4 – Airside main retail area
Phase 3/4 – Airside main retail area
Slide 29: Auckland Airport
Auckland Airport A
Slide 30: Phase 3/4 – Fly through
Phase 3/4 — Fly through BA Auckland Airport
Slide 31: The parking market is increasingly competitive
The parking market is increasingly competitive
Slide 32: Transformation of the parking business – understanding market growth
Last year we started the transformation of the parking business – starting by better understanding market growth EXAMPLE Assessment of DTB market growth factors
Slide 33: We also benchmarked our product and pricing mix
We also benchmarked our product and pricing mix EXAMPLE
Slide 34: Evolving our parking business to a yield focus with dynamic management
We are now evolving our parking business to a yield focus with dynamic management capability Key improvements in transport business How we monitor performance • Clear customer segmentation model • Daily/weekly automated reporting based on research and measurable parking data • Detailed analysis by s
Slide 35: Any questions?
Any questions?
Auckland International Airport — Investor Presentation (May 2010) on 6ix