Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2023 Earnings Presentation
38 slides from Auckland International Airport's earnings presentation, Aug 24, 2023
Slide 1: Annual Results Presentation
Annual Results Presentation 24 August 2023 Carrie Hurihanganui Chief Executive Philip Neutze Chief Financial Officer Prepared by: Strategy, Planning & Performance
Slide 2: Important notice
Important notice Annual results Disclaimer This presentation is given on behalf of Auckland International Airport Limited (NZX: AIA; ASX: AIA; ADR: AUKNY). Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription, purch
Slide 3: Highlights
Highlights
Slide 4: FY23 highlights
FY23 highlights 2023 Annual Results A year of transformative change at Auckland Airport Highlights Passenger Revenue Capital Price setting Payment of a movements investment event 4 dividend performance Financial 15.9m $625.9m $647.1m $5.0bn 4.0cps up 183% on the prior year up 108% on the prior year
Slide 5: Financial results at a glance
Financial results at a glance 2023 Annual Results Revenue Aeronautical Retail Reported profit Final Highlights revenue revenue after tax dividend $625.9m $219.5m $130.9m $43.2m 4.0cps performance Financial 108% 132% 477% 77% better future 84% of FY19 Building a 2023 earnings per share of 2.93cps Out
Slide 6: Strong recovery in passenger numbers
Strong recovery in passenger numbers… 2023 Annual Results International passengers continued to recover strongly throughout the year with the greater number of international carriers serving Auckland improving Highlights connectivity and choice for travellers Monthly passenger numbers as a % of FY19
Slide 7: Strong recovery in commercial performance
…coupled with strong recovery in commercial performance 2023 Annual Results The recovery in passenger movements during the year has driven improved performance across the commercial elements of the business Highlights Retail Car parking Hotels performance Financial better future Building a Outlook R
Slide 8: We are 'building a better future'
We are ‘building a better future’ 2023 Annual Results Supported the recovery in travel Reopened our commercial Focused on improving operating Continued our disciplined Highlights through increased connectivity businesses to cater for increased efficiency and effectiveness to approach to investment i
Slide 9: Financial performance
Financial a performance
Slide 10: Total passenger movements well up on FY22
Total passenger movements well up on FY22 2023 Annual Results Pre-COVID % of pre- • Total PAX volumes increased 183% on prior year Highlights For the year ended 30 June 2023 2022 Change 20196 COVID 2019 reflecting the strong recovery in international travel and a full year of domestic travel without
Slide 11: Aircraft movements and MCTOW
Aircraft movements and MCTOW 2023 Annual Results Pre-COVID % of pre- • International aircraft movements and MCTOW Highlights COVID For the year ended 30 June 2023 2022 Change 20197 increased by 132% and 91% respectively 2019 following a strong recovery of the international Aircraft movements airline
Slide 12: Return to underlying profit
Return to underlying profit 2023 Annual Results • Revenue up significantly in the year reflecting Highlights For the year ended 30 June ($m) 2023 2022 Change strong passenger-related and investment property growth Revenue 625.9 300.3 108% • Operating costs increased 47% reflecting the performance Ex
Slide 13: Return of passengers driving revenue uplift across the business
Return of passengers driving revenue uplift across the business 2023 Annual Results For the year ended 30 June ($m) 2023 2022 Change • Despite aeronautical prices held at FY22 levels Highlights for the first year of PSE4, revenue from Airfield Airfield income 86.6 60.9 42% and the Passenger Services
Slide 14: Operating costs
Operating costs 2023 Annual Results • The recovery in aviation necessitated higher staff Highlights For the year ended 30 June ($m) 2023 2022 Change numbers and outsourced operations for bussing, cleaning and parking (within asset management, Staff 63.3 50.0 27% maintenance and airport operations) t
Slide 15: Significant lift in capital expenditure
Significant lift in capital expenditure 2023 Annual Results Capital expenditure in the year of circa $647 million, a record year spanning both aeronautical and Highlights commercial assets Terminal Integration ($215 million): Capital expenditure 700 • Construction underway on several elements perfor
Slide 16: Balance sheet remains strong
Balance sheet remains strong 2023 Annual Results • Non current assets increased reflecting the net Highlights As at 30 June 2023 ($m) 2023 2022 Change $203 million upwards revaluations of land, Non-current assets 10,668.5 10,078.1 6% infrastructure, and runways, taxi ways & aprons classes of assets
Slide 17: Strong liquidity position and robust credit metrics
Strong liquidity position and robust credit metrics 2023 Annual Results Strong financial metrics with strong covenant headroom and liquidity to support the planned capex Highlights • Total drawn debt of $1,817 million at 30 June Key credit metrics Drawn debt maturity profile by financial year 2023,
Slide 18: Dividend
Dividend 2023 Annual Results Final dividend for FY23 of 4.0 cents per share Highlights Auckland Airport dividends per share • In June 2023, Auckland Airport revised its dividend policy to: Dividend per share (cents) 25 ‒ pay 70% to 90% of underlying net profit after tax (excluding unrealised gains a
Slide 19: Building a better future
Building a better future
Slide 20: Passenger markets are recovering
Passenger markets are recovering 2023 Annual Results After over two years of lockdowns and travel restrictions, passenger numbers recovered quickly in 2023 with strong demand for both domestic and Highlights international travel performance Financial Europe China 82% 23% North America better future
Slide 21: New Zealand is reconnecting to the world
New Zealand is reconnecting to the world 2023 Annual Results With the restart of services and the launch of new routes, during 2023, 25 airlines connected Auckland Airport with 40 destinations across the Middle East, Highlights Asia, the Americas and the Pacific Islands versus compared to 29 airline
Slide 22: The recovery in travel remains broad based
The recovery in travel remains broad based 2023 Annual Results Strong recovery in aviation markets across both Kiwi outbound travellers and international visitors, with a diverse mix of reasons for travel, despite Highlights COVID-19 related airline capacity shortages leading to very high air fares
Slide 23: Focused on improving efficiency and customer experience
We remain focused on improving efficiency and customer experience 2023 Annual Results Highlights performance Financial better future Building a Outlook • The rebound of passenger numbers, combined • Airport rosters are typically based on airline • On time departure performance for both Observation w
Slide 24: Transforming the aviation system at Auckland
Transforming the aviation system at Auckland 2023 Annual Results Airline consultation on the 10-year capital programme concluded in the year with circa $6.7 billion of investment planned for Auckland Airport over PSE4 and PSE5 that will transform the aviation system Highlights performance Financial
Slide 25: Significant progress towards terminal integration
Significant progress continues towards terminal integration 2023 Annual Results Substantial enabling works continue on the new domestic terminal that is planned to be tightly integrated with the existing international terminal building Highlights • Detailed consultation with airline stakeholders con
Slide 26: Airfield expansion providing important capacity for growth
Airfield expansion providing important capacity for growth 2023 Annual Results Highlights performance Financial better future Building a Outlook Page 26
Slide 27: Transport Hub is taking shape
2023 Transport Hub that will transform the guest experience is taking shape Annual Results Highlights performance Financial better future Building a Outlook Page 27
Slide 28: Retail recovery is underway
Retail recovery is underway 2023 Annual Results 2023 has been a transformative year for retail at Auckland Airport. With the recovery in travel, of Retail income $130.9 million Highlights the international retail precinct has reopened driving a significant lift in retail income in the year • By 30 J
Slide 29: Parking services continue to resonate with travellers
Parking services continue to resonate with travellers 2023 Annual Results With a full suite of products open for the year and ongoing strong demand for self-drive and Highlights premium products, Parking income outpaced the passenger recovery Number of public carparks • Parking revenue is up two-fol
Slide 30: Investment property continues strong growth
Investment property continues strong growth 2023 Annual Results Development momentum underpinning strong growth Highlights • Rental income up 27% to $143 million reflecting Portfolio value a combination of lease renewals, new tenancies and $8.4 million of ‘straight-lined’ future revenue $2.9 billion
Slide 31: Sustainability remains central to our activities
Sustainability remains central to our activities 2023 Annual Results Sustainability is a key priority for us – our planned investments will help us move towards climate change goals and create a more Highlights sustainable airport performance Financial Purpose Place People Community better future Bu
Slide 32: Outlook
Outlook 2023 Annual Results Guidance Highlights • As we look to the 2024 financial year, we continue to see positive signs in the recovery of the aviation industry with increased connectivity continuing to facilitate a recovery in travel performance • Reflecting this, Auckland Airport is providing t
Slide 33: Regulatory
Regulatory
Slide 34: Regulatory
Regulatory 2023 Annual Results On 8 June 2023, Auckland Airport reset aeronautical prices covering the five year pricing period to 30 June 2027 Highlights • Airline charges will rise following the current price freeze, with the increases driven by a combination of: performance ‒ $2.5 billion of pric
Slide 35: Appendix
Appendix
Slide 36: Appendix: Associates' performance
Appendix: Associates’ performance 2023 Annual Results For the year ended 30 June ($m) 2023 2022 Change Queenstown Airport (24.99% ownership) Total Revenue 59.6 26.8 122% EBITDA 43.9 14.0 214% Underlying Earnings (Auckland Airport share) 5.7 0.3 1,325% Domestic Passengers 1,633,459 1,096,655 49% Inte
Slide 37: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2023 Annual Results 2023 2022 For the year ended 30 June ($m) Reported Adjustments Underlying Reported Adjustments Underlying profit profit profit profit EBITDAFI per Income Statement 397.1 - 397.1 144.5 - 144.5 Investment property fair value change (139.7)
Slide 38: Glossary
Glossary Annual results AMTN Australian medium-term notes BPS Basis points CPS Cents per share DRP Dividend reinvestment plan EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates EV Electric vehicle FFO Funds from operations FY Financial yea
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