Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (May 2023)
36 slides from Auckland International Airport's debt investor presentation, May 2023
Slide 1: Auckland Airport Update for debt investors
Confidential Auckland Airport Update for debt investors May 2023 Prepared by: Strategy, Planning & Performance
Slide 2: Important Notice
Confidential Important Notice Debt investor update Disclaimer This presentation is for preliminary information purposes only, does not constitute a recommendation by Auckland International Airport Limited (Auckland Airport), Bank of New Zealand (Joint Lead Manager), Westpac Banking Corporation (Join
Slide 3: Agenda
Confidential Agenda 1. Company overview 2. Our continuing journey 3. Financial information Appendices Page 3
Slide 4: Company overview
Confidential Company overview Page 4
Slide 5: Auckland Airport, a gateway to New Zealand
Confidential Auckland Airport, a gateway to New Zealand… Auckland Airport is the largest and busiest airport in New Zealand with an extensive domestic aeronautical network, connecting Company Overview Kiwis from Kaitaia to Invercargill • New Zealand’s largest commercial airport serving the country’s
Slide 6: Reconnecting New Zealand to the world
Confidential Reconnecting New Zealand to the world Prior to COVID Auckland Airport was connected by 29 airlines to 43 international destinations. As at 31 December 2022 the Company Overview recovery in aviation saw Auckland Airport connected by 23 airlines to 35 international destinations. With the
Slide 7: Broad-based recovery driven from PAX mix
Confidential Broad-based recovery driven from PAX mix The recovery in aviation markets is strengthening as Kiwi outbound travellers are joined by increasing numbers of international visitors. Diverse reasons Company Overview for travel and strong load factors are further supporting industry confiden
Slide 8: Passenger numbers recovering
Confidential Passenger numbers recovering No domestic and international travel restrictions for most of 1H23 enabled further recovery of international PAX in the six Company Overview months to 31 December 2022. Total passenger numbers are expected to be back to pre-pandemic levels during 2025 • Dome
Slide 9: The recovery is not without its challenges
Confidential The recovery is not without its challenges From labour shortages, poor on-time performance, lost baggage and cost inflation to high ticket prices, a number of factors are presenting as challenges Company Overview to the recovery in the aviation system Worker shortages Displaced baggage
Slide 10: Results at a glance
Confidential Results at a glance Revenue Reported profit Passenger Operating Company Overview after tax movements Cashflow $287.8m $4.8m 7.6m $140.3m Our continuing journey 128% on 1H22 96% on 1H22 341% on 1H22 374% on 1H22 (78% of 1H19) (3% of 1H19) (71% of 1H19) (90% of 1H19) Information Financial
Slide 11: Credit highlights
Confidential Credit highlights Key gateway to Benefiting from the recovery Significant commercial Company Overview New Zealand post COVID-19 property portfolio 140.0 Our continuing 120.0 journey 100.0 Annual Rent Roll 80.0 60.0 Information Financial 40.0 20.0 0.0 Jun-22 Jun-12 Jun-13 Jun-14 Jun-15 J
Slide 12: Our continuing journey
Confidential Our continuing journey Page 12
Slide 13: Diverse and complementary business activities
Confidential Our continuing journey Diverse and complementary business activities Company Overview Aeronautical Retail Transport Our continuing journey Information Financial Appendices Investment Property Hotels Queenstown Airport Page 13
Slide 14: Five key projects underway whilst three remain on hold
Confidential Five key projects underway whilst three remain on hold 2021 Annual Results Highlights performance Financial Our continuing journey Outlook 14 Page 14
Slide 15: Significant progress towards terminal integration
Confidential Significant progress towards terminal integration 2021 Annual Results Substantial enabling work continues on the design of an integrated terminal that is planned to be tightly integrated with the existing international terminal building Highlights • Construction on key enabling work pro
Slide 16: Artist impression of the new Transport Hub
Confidential Artist impression of the new Transport Hub 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Page 16
Slide 17: Driving the recovery in our consumer business
Confidential Driving the recovery in our consumer business ANZ Investor Day Page 17 17
Slide 18: Exciting fashion outlet centre under construction
Confidential Exciting fashion outlet centre under 2021 Annual Results construction Highlights performance Financial Our continuing journey Outlook Illustrative only, actual layout will vary 100+ stores m2 23,000+ Page 18
Slide 19: Commercial property portfolio continues to grow
Confidential Commercial Significant property remains commercial well property positioned portfolio continues to grow Auckland Airport’s commercial property portfolio has grown rapidly in recent years, leveraging an exceptional track record of Company Overview design and delivery, and the precinct’s
Slide 20: Sustainability is central to who we are
Confidential Sustainability is central to who we are Purpose Place People Community Company Overview Kaupapa Kaitiakitanga Whānau Hapori 85% Net Zero 40 | 40 | 20 40% Our continuing journey Customers rate their overall 90% reduction in scope 1 and 2 Gender balance across Auckland Of employees partic
Slide 21: Re-energising the airport with solar
Confidential Re-energising the airport with solar 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Artist’s illustration Auckland Airport is looking skywards as we take our first steps to generate onsite renewable energy, with plans for rooftop solar systems atop t
Slide 22: Continuing on our decarbonisation pathway
Confidential Continuing on our decarbonisation pathway 2021 Annual Results Highlights performance Financial Our continuing journey Outlook Reducing Auckland Airport’s carbon footprint through the use of electric heat pumps for heating in terminal buildings • Auckland Airport is taking our first step
Slide 23: Financial information
Confidential Financial information Page 23
Slide 24: Return to underlying profit
Confidential Return to underlying profit For the year ended 30 June (1H23 6 months to 31 December 2022) Restated Company Overview $m 1H23 2022 20213 2020 2019 Revenue 287.8 300.3 281.1 567.0 743.4 Expenses1 98.8 155.8 110.0 306.6 188.6 Our continuing journey Earnings before interest, taxation, depre
Slide 25: Higher PAX numbers driving improved performance
Confidential Higher PAX numbers driving improved performance For the year ended 30 June (1H23 6 months to 31 December 2022) 1H23 2022 2021 2020 2019 Company Overview $m Airfield income 40.9 60.9 64.0 100.6 127.6 Passenger services charge 60.6 33.8 24.2 133.0 185.1 Our continuing journey Retail incom
Slide 26: Balance sheet remains strong
Confidential Balance sheet remains strong As at 30 June Restated Company Overview $m Dec-2022 2022 20211 2020 2019 Cash 62.8 24.7 79.5 765.3 37.3 Trade and other receivables 58.7 28.5 25.4 34.7 69.0 Our continuing journey Other current assets 21.7 21.6 20.9 37.0 - Current assets 143.2 74.8 125.8 837
Slide 27: Strong liquidity position with improved credit metrics
Confidential Strong liquidity position with improved credit metrics Key credit metrics Liquidity of $1,076 million to support the business Company Overview Test Dec-22 Jun-22 • Total drawn debt of $1,611 million at 31 December 2022, an increase of 9% or $134 Gearing covenant1 ≤ 60% 17.0% 15.6% milli
Slide 28: Economic Regulation
Confidential Economic Regulation Airline consultation on PSE4 aeronautical prices due to complete by June 2023 with price changes effective from 1 July 2023. Separately, the revision of the Civil Aviation Bill now been passed into law retaining the ability for airports to set aeronautical prices Com
Slide 29: Outlook
Confidential Outlook • As we look to the remainder of the 2023 financial year, we continue to see positive signs in the Company Overview recovery of the aviation industry • Increased connectivity, combined with the reopening of Auckland Airport’s commercial operations, is supporting earnings for the
Slide 30: Building a better future
Confidential Building a better future… Re-establishing our aeronautical network and Driving the recovery in our commercial Continued disciplined approach to investment Company Overview supporting the recovery in travel business in infrastructure and commercial opportunities Our continuing journey In
Slide 31: Thank you
Confidential Thank you Page 31
Slide 32: Appendices
Confidential Appendices Page 32
Slide 33: Appendix: Board of directors
Confidential Appendix: Board of directors Company Overview Our continuing journey Information Financial Dr Patrick Strange Tania Simpson Dean Hamilton Christine Spring Chair Director Director Director Appendices Julia Hoare Mark Binns Liz Savage Mark Cairns Director Director Director Director Page 3
Slide 34: Appendix: Management team
Confidential Appendix: Management team Company Overview Our continuing journey Information Financial Carrie Hurihanganui Melanie Dooney To be appointed André Lovatt Phil Neutze Chief Executive Chief Corporate Chief Digital Officer Chief Infrastructure Chief Financial Officer Services Officer Officer
Slide 35: Appendix: Underlying profit reconciliation
Confidential Appendix: Underlying profit reconciliation 2022 2021 Company Overview For the six months ended 31 December ($m) Underlying Underlying Reported profit Adjustments profit / (loss) Reported profit Adjustments profit / (loss) EBITDAFI per income statement 189.0 - 189.0 60.3 - 60.3 Our conti
Slide 36: Glossary
Confidential Glossary Debt investor update Auckland Airport Auckland International Airport Limited COVID COVID-19 EBITDA Earnings before interest, taxation and depreciation EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates JV Joint ventur
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