Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Presentation (April 2020)
25 slides from Auckland International Airport's investor presentation, Apr 6, 2020
Slide 1: Equity Raising Presentation
Equity Raising Presentation 6 April 2020 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 2: Disclaimer and important notice
Disclaimer and important notice Equity raising This presentation has been prepared by Auckland International Airport Limited (AIAL). This presentation has been prepared in relation to the offer of new shares in AIAL (New Shares) by way of a: • placement to selected investors (Placement); and • Share
Slide 3: Disclaimer and important notice (cont’d)
Disclaimer and important notice (cont’d) Equity raising Not an offer: This presentation is not a product disclosure statement or other offering document under New Zealand law (and will not be lodged with the Registrar of Financial Service Providers) or any other law or a prospectus or other disclosu
Slide 4: Overview of the equity raising and rationale
Overview of the equity raising and rationale Equity raising Comprehensive plan to • Auckland Airport is acting to strengthen its balance sheet and ensure it remains well capitalised during this period of strict border controls and significant remain well capitalised reduction in passenger numbers, a
Slide 5: Auckland Airport’s response to COVID-19
Auckland Airport’s response to COVID-19 Equity raising Auckland Airport’s priority continues to be the safety and wellbeing of its people, travellers, customers and stakeholders, while mitigating the impact of COVID-19 on its operations to ensure it remains strongly positioned for the recovery Capit
Slide 6: Pro-forma capitalisation and liquidity
Pro-forma capitalisation and liquidity Equity raising Following the equity raising, Auckland Airport will be well capitalised with expected capacity to meet all funding requirements to at least 31 December 2021 • Equity raising is expected to provide Auckland Airport with sufficient liquidity to: ‒
Slide 7: Pro-forma capitalisation and liquidity (cont’d)
Pro-forma capitalisation and liquidity (cont’d) Equity raising Pro Forma Liquidity Position Capital Markets Debt Pro Forma Adjusted Liquidity Pay Down Bank Pro Forma Liquidity4 NZ$m Impact of Offer Maturities due prior to Liquidity6 (31 March 2020) Facilities (31 March 2020) 31 December 2021 (31 Mar
Slide 8: Strong underlying business
Strong underlying business Equity raising The long-term, fundamental characteristics of Auckland Airport’s business are solid • Auckland Airport is New Zealand’s gateway for travel and trade, linking New Zealand to the world and Auckland to New Zealand Tourism • Positioned to capture long-term econo
Slide 9: Well positioned for a post COVID-19 recovery
Well positioned for a post COVID-19 recovery Equity raising Auckland Airport is well positioned for a post COVID-19 recovery • Government actions are supportive of broad recovery • Decisive action has been taken to secure balance sheet • Strategic cost cutting initiatives and employee reductions ‒ r
Slide 10: Key details of the equity raising
Key details of the equity raising Equity raising Offer size • NZ$1,200 million comprising: ‒ underwritten placement of NZ$1,000 million; and ‒ non-underwritten Share Purchase Plan to raise up to NZ$200 million together representing approximately 19.6% of Auckland Airport’s market capitalisation as o
Slide 11: Timetable
Timetable Equity raising Placement Date / Time Trading halt and bookbuild 8:45am NZST (6:45am AEST) Monday 6 April 2020 Upon announcement of Placement results, expected to be 1:00pm NZST (11:00am AEST) Trading halt lifted Tuesday 7 April 2020 Settlement on ASX Tuesday 14 April 2020 Settlement on NZX
Slide 12: Appendix A: Revised capital programme and debt maturity profile
Appendix A: Revised capital programme and debt maturity profile NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 13: Revised capital programme
Revised capital programme Equity raising Auckland Airport has prudently suspended or cancelled capacity driven capital expenditure, reducing its capital programme to focus on those projects that are essential for safety, those that replace legacy infrastructure and projects that provide resiliency.
Slide 14: Debt maturity profiles
Debt maturity profiles Equity raising Total facility amounts prior to bank debt extensions Total facility amounts post bank debt extensions 1,200 1,200 1,075 1,000 1,000 845 800 800 NZ$m NZ$m 600 562 600 543 439 439 413 400 365 400 325 280 266 280 266 242 200 200 - - CY20 CY21 CY22 CY23 CY24 CY25 CY
Slide 15: Appendix B: Risk factors
Appendix B: Risk factors NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 16: Risk factors
Risk factors Equity raising There are risks associated with an investment in Auckland Airport shares. Whilst the section below aims to highlight some of the key risks, it is not exhaustive. Additionally, some risks may be unknown and other risks, currently believed to be immaterial, could turn out t
Slide 17: Risk factors (cont’d)
Risk factors (cont’d) Equity raising Performance of non-aeronautical revenues • Non-aeronautical revenues include revenue from retail operations, hotels, carparks and Auckland Airport's property portfolio. Retail revenues are largely driven by passengers and their propensity to spend in the retail o
Slide 18: Risk factors (cont’d)
Risk factors (cont’d) Equity raising Impairments • Auckland Airport re-values its Investment Property portfolio on an annual basis and reviews the portfolio to assess the need for a re-valuation at each half year. Land, buildings and services, runway, taxiways and aprons and infrastructural assets w
Slide 19: Risk factors (cont’d)
Risk factors (cont’d) Equity raising The introduction of new regulations may have a material adverse effect on Auckland Airport’s financial performance • Auckland Airport’s business is divided, for regulatory purposes, into two ‘tills’. The aeronautical till is subject to information disclosure regu
Slide 20: Appendix C: Foreign selling restrictions
Appendix C: Foreign selling restrictions NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES
Slide 21: Foreign selling restrictions
Foreign selling restrictions Equity raising Australia This document and the offer of New Shares under the Placement is only made available in Australia to persons to whom a disclosure document is not required to be given under Chapter 6D of the Australian Corporations Act 2001 (Cth) (“Australian Cor
Slide 22: Foreign selling restrictions (cont’d)
Foreign selling restrictions (cont’d) Equity raising Any financial information contained in this document has been prepared in accordance with generally accepted accounting practice in New Zealand (NZ GAAP). It complies with New Zealand equivalents to International Financial Reporting Standards (NZ
Slide 23: Foreign selling restrictions (cont’d)
Foreign selling restrictions (cont’d) Equity raising Hong Kong WARNING: The contents of this document have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the Placement. If you are in any doubt about any of the contents of this document,
Slide 24: Foreign selling restrictions (cont’d)
Foreign selling restrictions (cont’d) Equity raising Switzerland This document is not intended to constitute an offer or solicitation to purchase or invest in the New Shares described herein. The New Shares may not be publicly offered, sold or advertised, directly or indirectly, in, into or from Swi
Slide 25: Glossary
Glossary Equity raising AIAL Auckland International Airport Limited AMTN Australian medium term notes ASX Australian Securities Exchange Capex Capital expenditure EBITDA Earnings before interest, taxation, depreciation and amortisation FRN Floating rate note NZX New Zealand Stock Exchange Placement
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