Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2024 Earnings Presentation
33 slides from Auckland International Airport's earnings presentation, Feb 22, 2024
Slide 1: Interim Results Presentation
Interim Results Presentation 22 February 2024 Carrie Hurihanganui Chief Executive Stewart Reynolds Chief Financial Officer (Acting) Prepared by: Strategy, Planning & Performance
Slide 2: Important notice
Important notice Interim 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, purc
Slide 3: Highlights
Highlights
Slide 4: 1H24 highlights
1H24 highlights 2024 Interim Results We have been focused on ‘Building a Better Future’ Highlights Passenger Revenue Capital Aeronautical Completion of Te movements investment regulation Arikinui Pullman hotel performance Financial 9.3m $440.5m $602.8m IM review 311 rooms up 22% on 1H23 up 53% on 1H
Slide 5: Financial results at a glance
Financial results at a glance 2024 Interim Results Total Aeronautical Retail Highlights Parking Commercial revenue revenue revenue revenue property revenue $440.5m $194.8m $90.3m $33.8m $72.5m performance Financial 53% 92% 52% 23% 11% better future Building a $3.0bn portfolio valuation Outlook EBITD
Slide 6: We are building a better future
We are building a better future 2024 Interim Results Highlights New flights driving additional …focused on improving the …and investing to deliver choice for travellers… operating efficiencies… further capacity and resilience performance Financial better future Building a Outlook Page 6
Slide 7: Financial performance
Financial performance
Slide 8: Aircraft movements and MCTOW
Aircraft movements and MCTOW 2024 Interim Results Pre-COVID % of pre- • International aircraft movements and MCTOW Highlights COVID For the six months ended 31 December 2023 2022 Change 20183 increased by 39% and 42% respectively following 2018 a strong recovery of the international airline Aircraft
Slide 9: Total passenger movement growth continues
Total passenger movement growth continues 2024 Interim Results Pre-COVID % of pre- • Total PAX volumes increased 22% on the prior Highlights COVID For the six months ended 31 December 2023 2022 Change 20184 2018 period reflecting the growth in international travel seen in the period International ar
Slide 10: Revenue growth propelling underlying profit
Revenue growth propelling underlying profit 2024 Interim Results • Revenue was up significantly in the period Highlights For the six months ended 31 December ($m) 2023 2022 Change reflecting the combined effects of higher PAX volumes and the commencement of PSE4 Revenue 440.5 287.8 53% aeronautical
Slide 11: Passenger-driven revenue uplift across the business
Passenger-driven revenue uplift across the business 2024 Interim Results • Revenue from airfield and the passenger services Highlights For the six months ended 31 December ($m) 2023 2022 Change charge grew a combined 92% reflecting strong growth in passenger numbers and the new Airfield income 75.3
Slide 12: Operating costs
Operating costs 2024 Interim Results • Higher staff numbers and outsourced operations Highlights For the six months ended 31 December ($m) 2023 2022 Change to support customer experience, cleaning, bussing and parking (within asset management, Staff 36.9 29.5 25% maintenance and airport operations)
Slide 13: Significant lift in capital expenditure
Significant lift in capital expenditure 2024 Interim Results Record capital expenditure in the period of $602.8 million, spanning both aeronautical and commercial assets, including: Highlights Terminal Integration ($147 million): Capital expenditure • Significant construction activity underway on se
Slide 14: Balance sheet remains strong
Balance sheet remains strong 2024 Interim Results • The substantial investment in aeronautical Highlights As at ($m) Dec-23 Jun-23 Change infrastructure and commercial projects in the Non-current assets 11,187.0 10,668.5 5% period has resulted in an increase in non-current assets performance Propert
Slide 15: Strong liquidity position and robust credit metrics
Strong liquidity position and robust credit metrics 2024 Interim Results Strong financial metrics with strong covenant headroom and liquidity continue to support the planned investment Highlights • Total drawn debt of $2,231 million at Key credit metrics Drawn debt maturity profile by financial year
Slide 16: Building a better future
Building a better future
Slide 17: New Zealand's gateway to the world
New Zealand’s gateway to the world 2024 Interim Results With the continued growth in the international network, during the six months ended 31 December 2023, 27 airlines connected Auckland Airport with 42 Highlights destinations across the Middle East, Asia, the Americas and the Pacific Islands comp
Slide 18: Continued focus on improving efficiency and customer experience
Continued focus on improving efficiency and customer experience 2024 Interim Results Highlights Collaboration with Optimising check-in Digitisation Additional support stakeholders assets performance Financial >20% 39 26% 64 reduction in international arrivals’ new self-service kiosks adoption of NZ
Slide 19: Investing in important capacity right across the precinct
Investing in important capacity right across the precinct 2024 Interim Results Highlights performance Financial better future Building a Outlook Page 19
Slide 20: Progress continues towards terminal integration
Progress continues towards terminal integration… 2024 Interim Results Following conclusion of consultation, enabling works continue on the new domestic terminal Highlights • Detailed design of the integrated facility now in final stages with completion of this stage expected by mid-calendar 2024 per
Slide 21: First stage of the Transport Hub expected to open in April
2024 First stage of the Transport Hub expected to open in April 2024 Interim Results Highlights performance Financial better future Building a Outlook Page 21
Slide 22: Continued growth in parking
Continued growth in parking 2024 Interim Results Auckland Airport’s parking proposition continues to resonate with travellers, with strong revenue growth in Highlights the period • Parking revenue is up 22% to $33.8 million in of car park income the period reflecting the combined effects of the grow
Slide 23: Strong retail performance, including transition to single operator
Strong retail performance, including transition to single operator 2024 Interim Results Growth in international travel and an enhanced product offering have driven an improvement in performance Highlights • Retail income in the six months ended of retail income 31 December 2023 was $90.3 million, up
Slide 24: Investment property continues strong growth
Investment property continues strong growth 2024 Interim Results Development momentum underpinning strong growth Highlights • Rental income up 11% to $72.5 million, reflecting IP portfolio value a combination of lease renewals and new tenancies $3.0 billion annual rent performance • Rent roll at Dec
Slide 25: 782 rooms will be available each day for travellers
782 rooms will be available each day for travellers 273 198 311 rooms rooms rooms Page 25
Slide 26: Continuing to build a sustainable future
Continuing to build a sustainable future Reducing waste Resilience against climate Protecting and enhancing change our natural environment Organic waste separation in Construction of 3,500 metres of Continuing to support a landside food courts is stormwater pipes to manage successful protection and
Slide 27: Regulatory update
Regulatory update 2024 Interim Results 1H24 was the first financial period in which the new aeronautical charges for PSE4 applied, and the Commerce Commission completed its Input Methodologies review Highlights Review of price setting event 4 Timetable for review of aeronautical pricing for PSE4 • O
Slide 28: Outlook
Outlook
Slide 29: Outlook
Outlook 2024 Interim Results Guidance Highlights • As we look to the remainder of FY24, we continue to see growth in capacity deployed by international airlines and strong demand for our commercial products and services performance • However, uncertainty remains around the pace of growth given the e
Slide 30: Appendix
Appendix
Slide 31: Appendix: Associates' performance
Appendix: Associates’ performance 2024 Interim Results For the six months ended 31 December ($m) 2023 2022 Change Queenstown Airport (24.99% ownership) Total revenue 33.0 30.0 10% EBITDA11 24.1 22.5 7% Underlying earnings (Auckland Airport’s share) 11 3.1 2.9 7% Domestic passengers 799,301 845,216 (
Slide 32: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2024 Interim Results 2023 2022 For the six months ended 31 December ($m) Reported Adjustments Underlying Reported Adjustments Underlying profit profit profit profit EBITDAFI per income statement 310.2 - 310.2 189.0 - 189.0 Investment property fair value cha
Slide 33: Glossary
Glossary Interim results AMTN Australian medium-term notes CPS Cents per share EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates FFO Funds from operations FY Financial year to 30 June GAAP Generally accepted accounting principles IM New Z
Auckland International Airport — H1 FY2024 Earnings Presentation on 6ix