Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2016 Earnings Presentation
33 slides from Auckland International Airport's earnings presentation, 2016
Slide 1: Annual Results 2016
Annual Results 2016 Adrian Littlewood Chief Executive Delivering results Philip Neutze From 1966 - 2016 Chief Financial Officer
Slide 2: Highlights
Highlights 2016 full year results Adrian Littlewood, chief executive
Slide 3: 50 years of history
50 years of history 2016 Annual Results Highlights performance Financial Our continuing journey 6.6% average annual passenger growth over 50 years 3
Slide 4: Results at a glance
Results at a glance 2016 Annual Results Revenue Passenger movements Highlights 12.9% $573.9m 9.1% 17.3m International 8.8m up 8.1% | International transits 0.6m up 17.2% Domestic 7.9m up 9.8% performance Financial Operating EBITDAFI Retail income 13.2 % $430.3m 19.3% $157.5m Our continuing journey U
Slide 5: Results at a glance: strong growth driven by enhanced connectivity
Results at a glance 2016 Annual Results Strong growth driven by enhanced connectivity to new and established markets Highlights 8 new international airlines launched or announced during FY16 6.7% increase in international aircraft movements, domestic up 3.5% performance 8.5% increase in total seat c
Slide 6: Financial performance
performance Financial 2016 full year results Philip Neutze, chief financial officer
Slide 7: Excellent twelve months
Excellent twelve months 2016 Annual Results 2016 financial results Highlights 2016 2015 Change For the year ended 30 June $m $m performance Revenue 573.9 508.5 12.9% Financial Expenses 143.6 128.5 11.8% Earnings before interest, taxation, depreciation, fair value adjustments and investments in assoc
Slide 8: Strong growth across the business
Strong growth across the business 2016 Annual Results 2016 2015 Change Highlights For the year ended 30 June $m $m Airfield income 103.4 93.3 10.8% Passenger services charge 154.9 140.9 9.9% performance Financial Retail income 157.5 132.0 19.3% Car park income 52.1 46.6 11.8% Our continuing Investme
Slide 9: Significant growth in passengers
Significant growth in passengers 2016 Annual Results Passenger movements Highlights 2016 2015 Change performance International arrivals 4,420,669 4,077,749 8.4% Financial International departures 4,358,907 4,046,686 7.7% International passengers excluding transits 8,779,576 8,124,435 8.1% Our contin
Slide 10: Runway movements growing
Runway movements growing 2016 Annual Results Aircraft movements and MCTOW Highlights For the year ended 30 June 2016 2015 Change performance Aircraft movements Financial International aircraft movements 49,825 46,692 6.7% Domestic aircraft movements 107,929 104,264 3.5% Our continuing Total aircraft
Slide 11: Expenses
Expenses 2016 Annual Results 2016 2015 Change Highlights For the year ended 30 June $m $m Staff 46.8 46.3 1.1% Asset management, maintenance and airport operations 49.1 44.2 11.1% performance Financial Rates and insurance 11.5 10.7 7.5% Marketing and promotions 16.3 13.2 23.5% Professional services
Slide 12: Associates' performance
Associates’ performance 2016 Annual Results 2016 2015 Change Highlights For the year ended 30 June $m $m Queenstown Airport (24.99% ownership) Total Revenue 31.5 24.8 27.0% performance Financial EBITDAFI 21.5 16.6 29.5% Domestic Passengers 1,176,330 1,000,713 17.5% International Passengers 474,779 3
Slide 13: Capital expenditure
Capital expenditure 2016 Annual Results 400 2016 2015 Change Highlights 350 For the year ended 30 June $m $m 300 Renewal 18.4 13.7 34.3% Capex $m 250 Growth 224.8 133.9 67.9% performance 200 Financial Total capital expenditure 243.2 147.6 64.8% 150 100 Depreciation 73.0 64.8 12.7% Our continuing 50
Slide 14: Funding
Funding 2016 Annual Results Drawn borrowings by category as at 30 June 2016 • Reflecting greater investment, total Highlights borrowings at 30 June rose 9.5% in the year, but gearing reduced to 19.7% at 30 Commercial Paper (4.9 per cent) June1 Drawn Bank Facilities performance (17.4 per cent) • Weig
Slide 15: Our continuing journey
Our continuing journey 2016 full year results Adrian Littlewood, chief executive
Slide 16: Growing Travel Markets: strong growth in connectivity
Strategic priority: Growing Travel Markets 2016 Annual Results Strong growth in connectivity Highlights • Strong international growth driven by enhanced connectivity to established, emerging and new markets: – 8 new international airlines launched or announced during FY16 performance Financial – 15
Slide 17: Delivering growth through travel markets
Delivering growth through travel markets 2016 Annual Results 2016 passenger movements and capacity by direct connecting regions Highlights performance Financial Our continuing journey 17 Note: passenger movements on routes, not arrivals by country of residence
Slide 18: Passenger mix is changing
Passenger mix is changing 2016 Annual Results Strong passenger growth in 2016 Fastest growing arrivals by country in Highlights FY16 • Strong international and domestic passenger growth 30% driven by capacity increases and solid load factors 25% • Passenger growth driven by mix of established, perfo
Slide 19: Tourism sector in a state of growth
Tourism sector in a state of growth 2016 Annual Results Successes in developing shoulder season is spreading the load Highlights New Zealand monthly visitor arrivals1 • Tourism sector experiencing strong growth with (000) total international visitor arrivals up over 10% and 500 Low season arrivals i
Slide 20: Strengthen our consumer business: retail
Strategic priority: Strengthen our consumer business 2016 Annual Results Retail offering proving very popular with sales up over 10% Total Retail Sales (excl FX)1 Highlights • Total international PSR (ex tobacco) up 1.3% on prior year • Two new world-class duty free operators with enhanced store fit
Slide 21: Parking revenue growth ahead of passenger growth
Strategic priority: Strengthen our consumer business 2016 Annual Results Parking revenue growth ahead of passenger growth Highlights • Revenue management tool and improved promotions driving parking revenue up 11.8% and ARPS up 11.6% performance • Valet services now established at terminals. Valet F
Slide 22: Be fast, efficient and effective
Strategic priority: Be fast, efficient and effective 2016 Annual Results Real-time collaborative decision making delivering tangible results Highlights • Applying a ‘total airport management’ concept to drive International departure operational efficiency through collaborative decision 4.1% processi
Slide 23: To be one of the safest airport workplaces
Strategic priority: Be fast, efficient and effective 2016 Annual Results To be one of the safest airport workplaces 76% Health & safetyreporting incident Highlights • Auckland Airport has a strong commitment to safeguard the health and safety of people who work at or visit the airport 43% Lost time
Slide 24: A significant period of investment is underway
Strategic priority: Invest for future growth 2016 Annual Results A significant period of investment is underway Highlights • 2016 has seen a step change in investment as we build to accommodate the ongoing growth in passengers, aircraft and businesses operating at the airport performance Financial •
Slide 25: Significant work planned for 2017
Strategic priority: Invest for future growth 2016 Annual Results Significant work planned for 2017 Highlights • Expansion of the international departure area will Extension to Pier B of the international terminal continue throughout 2017 • Commence construction of the Pier B extension performance Fi
Slide 26: Another standout year for our property business
Strategic priority: Invest for future growth 2016 Annual Results Another standout year for our property business Highlights • Rent roll up 12.3% on the prior year • Ten new income generating developments completed including: performance Financial – a 12,000 sqm processing facility for Coca-Cola Amat
Slide 27: Being a good neighbour
Being a good neighbour 2016 Annual Results Supporting and lifting achievement within our local community Highlights Education Established a range of programmes to support education including: - scholarship programme for local teachers performance Financial - scholarships for local students enablin
Slide 28: Regulatory: economic regulation
Regulatory 2016 Annual Results Economic regulation Highlights • The Commerce Commission’s review of the current Input Methodologies (“IM”) is underway, expected to finish in December 2016 • The Commission’s draft decision on the IM review was released in June reaffirming that the performance Financi
Slide 29: Outlook
Outlook 2016 Annual Results Guidance Supportive macro environment Highlights • Ongoing strong growth and performance means that Travel industry benefiting from we are confident that the Company will again deliver continued favourable drivers strong financial results in the next 12 months performan
Slide 30: Appendix
Appendix
Slide 31: Underlying profit reconciliation
Underlying profit reconciliation 2016 Annual Results 2016 2015 Reported Adjustments Underlying Reported Adjustments Underlying For the year ended 30 June earnings $m earnings earnings $m earnings $m $m $m $m EBITDAFI 430.3 - 430.3 380.0 - 380.0 Share of profit from associates (8.4) 19.9 11.5 12.5 (1
Slide 32: Important Notice and Glossary
Important Notice and Glossary 2016 Annual Results Disclaimer This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription, purchase, or recomme
Slide 33: Thank you
Thank you
Auckland International Airport — FY2016 Earnings Presentation on 6ix