Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (May 2014)
20 slides from Auckland International Airport's debt investor presentation, May 20, 2014
Slide 1: Seven Year Fixed Rate Bonds
Seven Year Fixed Rate Bonds Auckland International Airport Limited 20 May 2014
Slide 2: Disclaimer
Disclaimer Auckland International Airport Limited (the “Issuer” or “Auckland Airport”) is seeking to issue up to NZ$150 million of unsecured, unsubordinated fixed rate bonds (“Bonds”) for general corporate purposes and the refinancing of the April 2014 capital return to shareholders. Application has
Slide 3: Indicative Terms Sheet
Seven Year Fixed Rate Bonds Indicative Terms Sheet Direct, unsecured, unsubordinated, fixed rate debt obligations of Auckland Description of Bonds Airport Issuer Long-Term Credit Rating (S&P) A- Expected Long-Term Issue Credit Rating (S&P) A- Issue Amount Up to NZ$150 million Opening Date Tuesday, 2
Slide 4: Company Position in the Group
Seven Year Fixed Rate Bonds Company Position in the Group Investing in Auckland International Airport Limited – the parent • Auckland International Airport Limited is listed on the NZX and ASX. • Acquired 24.55% ownership of North Auckland International Airport Limited (the Issuer) Queensland Airpor
Slide 5: New Zealand's busiest airport and our international gateway
Seven Year Fixed Rate Bonds New Zealand’s busiest airport and our international gateway • Auckland Airport is the largest and busiest airport in New Zealand in terms of passenger movements and revenue. • International passengers represented 53% of total passenger movements in the year to 30 June 201
Slide 6: Historically Resilient Business
Seven Year Fixed Rate Bonds Historically Resilient Business • The business has been resilient during times of stress in global economies and during times of external negative events. Christchurch Sub Prime Crisis and Earthquake Global Recession Avian Flu Outbreak SARS Outbreak Sept 11 Terrorist Atta
Slide 7: Gateway to New Zealand
Seven Year Fixed Rate Bonds Gateway to New Zealand • 75% of New Zealand’s visitors arrive or depart from Auckland Airport, and over 90% of long haul visitor arrivals. • Only commercial airport in New Zealand’s largest city – 40% of New Zealand’s total population within a two hour drive. • No curfew,
Slide 8: Significant Land Holdings
Seven Year Fixed Rate Bonds Significant Land Holdings ---- Auckland Airport boundary ---- Approx. CBD boundaries (Bounded by waterfront and motorways) • Auckland Airport owns approximately 1,500 hectares of freehold land. • The land holding provides opportunities for expansion of aeronautical infras
Slide 9: Our Strategy – Faster, Higher, Stronger
Seven Year Fixed Rate Bonds Our Strategy – Faster, Higher, Stronger STRENGTHEN BE FAST, GROW TRAVEL INVEST FOR OUR EFFICIENT MARKETS FUTURE CONSUMER AND GROWTH BUSINESS EFFECTIVE 9
Slide 10: Our 30 Year Vision
Seven Year Fixed Rate Bonds Our 30 Year Vision • Staged and Affordable • Capacity for growth to 2044 and beyond 10
Slide 11: Regulatory Environment
Seven Year Fixed Rate Bonds Regulatory Environment • Dual-till regime under the Commerce Act 1986 with information disclosure regulation. • Aeronautical till: faces limited competition and therefore is subject to disclosure regulation. • Non-aeronautical till: open market competitive forces. • Airpo
Slide 12: A performance update
Seven Year Fixed Rate Bonds A performance update Auckland International Airport Limited (Parent) • Net profit after tax of $183.6 million for year to 30 June 2013 (up 28.4% from 2012). • Underlying profit of $160.9 million for the year to 30 June 2013 (up 12.7% from 2012). • Passenger growth has con
Slide 13: Five year results overview
Seven Year Fixed Rate Bonds Five year results overview Auckland International Airport Limited 30 June 2013 30 June 2012 30 June 2011 30 June 2010 30 June 2009 (Parent only) $’000 $’000 $’000 $’000 $’000 Revenue 469,146 441,089 411,625 369,300 368,313 Expenses 117,624 108,537 99,526 86,802 88,881 Ear
Slide 14: Capital Return – Rationale
Seven Year Fixed Rate Bonds Capital Return – Rationale • Auckland Airport has been reinvesting surplus cash flows in the business to drive growth. • This investment and strong execution has significantly improved profitability over the last five years. • Key credit metrics have strengthened beyond h
Slide 15: Auckland Airport borrowings
Seven Year Fixed Rate Bonds Auckland Airport borrowings • Auckland Airport currently utilises a mixture of NZ DCM term bonds, bank facilities, USPP notes, commercial paper and money market facilities. • As at 30 April 2014, Auckland Airport had: • $1.519 billion total drawn debt. • $336.6 million co
Slide 16: Auckland Airport borrowings
Seven Year Fixed Rate Bonds Auckland Airport borrowings The BNZ multi currency facility and the CBA multi currency bank facility both support the commercial paper programme (current balance of $81.675 million as at 30 April 2014) through the availability of same-day draw-downs and provide liquidity
Slide 17: Passenger Volume Growth and Volatility
Seven Year Fixed Rate Bonds Passenger Volume Growth and Volatility FY02 – FY13 CAGR AIAL International 3.7% Domestic 5.9% Total 4.6% Standard Deviation International 4.5% Domestic 5.3% Total 4.0% Coefficient of Variation 0.86 17
Slide 18: Key credit metrics
Seven Year Fixed Rate Bonds Key credit metrics Auckland International Airport Limited 30 June 2013 30 June 2012 30 June 2011 30 June 2010 30 June 2009 (Parent only) S&P Long-term credit rating A- (Positive) A- (Stable) A- (Stable) A- (Stable) A- (Stable) FFO / average net debt (%) 20.7 19.8 19.2 15.
Slide 19: How to Find Out More
Seven Year Fixed Rate Bonds How to Find Out More Auckland International Airport Limited ANZ Bank New Zealand Limited First Floor Level 7, 1 Victoria Street 4 Leonard Isitt Drive Wellington 6012 Auckland Airport Telephone: 0800 269 476 Manukau 2022 Telephone: 09 255 9029 Deutsche Craigs Limited Forsy
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