Auckland International Airport Limited · NZX:AIA
Auckland International Airport — ADR virtual investor conference (March 2018)
22 slides from Auckland International Airport's conference presentation, March 2018
Slide 1: Auckland Airport ADR virtual investor conference
Auckland Airport ADR virtual investor conference ADR investor conference
Slide 2: Auckland Airport at a glance
Auckland Airport at a glance 22km from the CBD or ~25 Associates mins via tunnel • Queenstown (24.99%) 19.7m annual • Novotel hotel (40%) passengers $1.3b investment 1,500 ha of freehold property land, 250 ha available for property development Diverse parking offering ~90 retail stores across Two ho
Slide 3: Strong foundations for growth
Strong foundations for growth Positive exposure Strong network Attractive customer Strong development to growth markets base potential 2/3rds 94% #1 #1 of the global middle class will be share of long haul arrivals to Highest individual footfall Largest owner of vacant land in residents of the Asia-
Slide 4: Why invest in Auckland Airport?
Why invest in Auckland Airport? One of the largest listed corporates in New Zealand with a market capitalisation of US$5.5 billion and debt of US$1.6 billion1 Average total shareholder return of 22.1% per annum since FY12 Ideal platform for exposure to buoyant local economy and very strong Asi
Slide 5: Company overview
M21/30A0 Auedwios
Slide 6: Regulatory environment
Regulatory environment Overview • Dual-till regime, with the aeronautical segment subject to information ~50% of revenue is disclosure regulation under the Commerce Act 1986 regulated1 350 • Disclosure regime includes monitoring of service standards, asset availability, capital expenditure plans, ef
Slide 7: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand New Zealand international airports by passenger numbers 1 • The largest airport in New Zealand Auckland • 75% of international passengers to New 18.345 million* Zealand arrive or depart from Auckland Airport and 94% of total long haul arrivals2 • Main c
Slide 8: Connecting New Zealand to the world
Connecting New Zealand to the world Routes added since 2015 have connected Auckland with new cities of nearly 140 million people while passengers increased 24% and airlines serving Auckland increased by 67% 30 international airlines 46 international destinations London Vancouver domestic Beijing Han
Slide 9: Proven passenger growth
Proven passenger growth Total Passengers at Auckland Airport (excl. Transits) 20.0 Half 1 Half 2 18.0 16.0 Sub Prime Crisis and Christchurch 14.0 Annual passengers (m) Global Earthquake Avian Flu Recession 12.0 Outbreak Sept 11 SARS 10.0 Terrorist Outbreak Attacks 8.0 6.0 4.0 2.0 0.0 FY00 FY01 FY02
Slide 10: Diverse business activities
Diverse business activities Aeronautical Retail Car park 1H18: $149m revenue, 2.7% $89m revenue, 10.2% $31m revenue, 8.7% • 45% of 1H18 revenue • Diverse retail offering with • 12,332 parking spaces ~90 stores, 2 duty free • 1 new airline, 4 new routes operators • Options range of parking in 1H18 se
Slide 11: Diverse business activities
Diverse business activities Investment Property Hotel portfolio Associates 1H18: $90m rent roll, 38.9% 93.4% occupancy, 1.3% $11.2m underlying profit, 47.4% • $1.3b portfolio value at 31 • Novotel 263 room 4+star • ~25% stake in Queenstown Dec. 2017, $90m rent roll hotel, Auckland Airport Airport, t
Slide 12: Our strategy – faster, higher, stronger
Our strategy – faster, higher, stronger Description Our focus areas Adopt an ambitious and innovative • Sustain and grow existing airline capacity approach to help New Zealand to • Diversify our geographic source market portfolio sustainably unlock the growth opportunities in travel, trade and • Rea
Slide 13: Strong demand growth and asset renewal is driving capital investment
Strong demand growth and asset renewal is driving capital investment Phase 6 Arrivals and MPI expansion, check-in Phase 4 (completed) expansion Second runway Pier B extension, Progressing planning 17-19 contact stands and earthworks Taxiways & stands Code F taxiways, Roading stands and aprons Road i
Slide 14: Significant projects will create benefits for consumers
Significant projects will create benefits for consumers International departures expansion New domestic jet terminal Transport Nth Park & Ride Key benefits: Nixon Rd Bypass • Improving land transport is a key priority for Auckland Airport Altitude Drive • Requires a multi-mode solution GBMD HOV Tom
Slide 15: Financial information
Financial information
Slide 16: 1H18 results at a glance
1H18 results at a glance Revenue Passenger movements 6.9% $332.4m 6.4% 10.0m Operating EBITDAFI Aircraft movements 6.0% $250.1m 4.2% 88,113 Underlying profit Interim dividend per share 7.8% $133.1m 7.5% 10.75 cents ADR investor conference 16
Slide 17: Strong five year financial performance
Strong five year financial performance 4 year For the year ended 30 June 2017 2016 2015 2014 2013 CAGR NZ$m Revenue 629.3 573.9 508.5 475.8 448.5 8.8% Expenses 156.2 143.6 128.5 120.6 117.6 7.4% Earnings before interest, taxation, depreciation, fair value adjustments and investments in 473.1 430.3 3
Slide 18: Capital structure
Capital structure For the year ended 30 June 2017 2016 2015 2014 2013 Debt / debt + market value of equity 19.5% 19.7% 22.5% 24.7% 22.8% Debt / EBITDAFI 4.3x 4.4x 4.5x 4.2x 3.5x Funds from operations / net debt 16.5% 16.7% 15.3% 16.0% 19.9% Funds from operations interest cover 4.9x 4.6x 3.9x 4.5x 4.
Slide 19: Outlook
Outlook FY18 Guidance • Underlying profit after tax (excluding any fair value changes and other one-off items) guidance of between $250m and $257m • Capital expenditure guidance of between $410m and $460m • This guidance is subject to any material adverse events, significant one-off expenses, non-ca
Slide 20: Summary
Summary • Unique business model with 75% EBITDAFI margin, ~50% regulated activities, a broad business mix, and $6.7b assets including 1,500 hectares of freehold land • Strong foundations for future growth with an attractive macro environment, a strong network, attractive customer base and strong dev
Slide 21: Reference material and further details
Reference material and further details Reference material • Auckland Airport website: https://corporate.aucklandairport.co.nz/ • Regulation overview: https://corporate.aucklandairport.co.nz/investors/regulation • Commerce Commission: http://www.comcom.govt.nz/regulated-industries/airports/ • ADR ove
Slide 22: 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
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