Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (September 2018)
39 slides from Auckland International Airport's debt investor presentation, Sep 21, 2018
Slide 1: Auckland Airport investor presentation in relation to intended retail bond offer
For personal use only Market Release | 21 September 2018 Auckland Airport investor presentation in relation to intended retail bond offer As announced on 18 September 2018 Auckland International Airport Limited (“Auckland Airport”) is considering an offer of fixed rate bonds maturing in October 2024
Slide 2: NZDCM Presentation
Delivering NZDCM Presentation Philip Neatze _ Chief Financial Officer Stewart Reynolds Strategy, Planning @nd Performan
Slide 3: Important notice
Important notice 2018 September NZDCM Presentation Auckland Airport intends to make an offer of fixed rate bonds (Bonds) in reliance upon the exclusion in clause 19 of schedule 1 of the Financial Markets For personal use only Conduct Act 2013 (FMCA). No money is currently being sought and no Bonds c
Slide 4: Key Terms
Key Terms 2018 September NZDCM Presentation Issuer Auckland International Airport Limited (“Auckland Airport”) For personal use only Direct, unsecured, unsubordinated, fixed rate debt obligations of Auckland Airport ranking equally and without preference among themselves and equally with all other D
Slide 5: Company overview
For personal use only Company overview
Slide 6: Auckland Airport at a glance
Auckland Airport at a glance 2018 September NZDCM Presentation For personal use only 20.5 million 93 Company Overview % share of long haul arrivals to New Zealand annual passengers 30 international Strategy for Auckland Airport our future airlines in 2018 48 international destinations 75 % share of
Slide 7: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2018 September NZDCM Presentation New Zealand international airports by passenger numbers 1 For personal use only Company Overview • The largest airport in New Zealand Auckland • Main commercial airport serving New Zealand’s Strategy for largest city wi
Slide 8: Connecting New Zealand to the world
Connecting New Zealand to the world 2018 September NZDCM Presentation Auckland Airport connects New Zealand to 48 international destinations For personal use only Company Overview Strategy for our future London Vancouver Chicago Information Beijing Financial Haneda Xi’an Tianjin Seoul Narita San Fra
Slide 9: Proven passenger growth
Proven passenger growth 2018 September NZDCM Presentation Total passengers at Auckland Airport For personal use only Company Overview 22 20 Strategy for our future 18 16 Sub-Prime Crisis Christchurch and Global Earthquake Information Financial 14 Recession Annual Passengers (m) Avian Flu Outbreak SA
Slide 10: Diverse and complementary business activities
Diverse and complementary business activities 2018 September NZDCM Presentation For personal use only Company Overview Aeronautical Retail Transport Strategy for our future Information Financial • $301.2m revenue in FY18 • $190.6m revenue in FY18 • $61.0m revenue in FY18 (9% Outlook (44% of the comp
Slide 11: Diverse and complementary business activities
Diverse and complementary business activities 2018 September NZDCM Presentation For personal use only Company Overview Investment Property Hotel Portfolio Queenstown Strategy for our future Information Financial • $1.2bn investment property • Portfolio of two hotels being a • ~25% stake in Outlook p
Slide 12: Regulatory environment
Regulatory environment 2018 September NZDCM Presentation Overview ~50% of FY18 revenue is For personal use only Company Overview • Dual-till regime, with the aeronautical segment subject to regulated 400 information disclosure regulation under the Commerce Act 350 1986 Strategy for our future 300 •
Slide 13: Strategy for our future
For personal use only Strategy for our future
Slide 14: Our strategy
Our strategy 2018 September NZDCM Presentation For personal use only Company Overview Adopt an ambitious and innovative approach to help New Zealand to sustainably unlock the growth opportunities in travel, trade and tourism Strategy for our future Strengthen and extend our retail, transport and hot
Slide 15: Strategic priority: Growing travel and trade markets
Strategic priority: 2018 Growing travel and trade markets September NZDCM Presentation Long-term the outlook remains positive… Multiple opportunities for growth remain For personal use only Company Overview • Chinese and Indian middle-class • Continue to focus on emergence and passenger growth under
Slide 16: Strategic priority: Investing for future growth
Strategic priority: 2018 Investing for future growth September NZDCM Presentation For personal use only Company Overview Strategy for our future Information Financial International departures expansion New domestic jet terminal Outlook Transport Nth Park & Ride Key benefits: Nixon Rd Bypass • Improv
Slide 17: Airport development plan and timeline
Improved : Improved public >=. —._ international transport and roading SS arrival New 5-star infrastructure —— experience” ~hotel = 2017 to 2022 — 2020 == 2021 = Upgrade internatiorra= departure experience = = 2017 t0-2019 New domestic jet terminal* Upgrade ‘ international-=*=* ¢heck-ir’area — ‘Ghe
Slide 18: Strategic priority: Be fast, efficient and effective
Strategic priority: 2018 Be fast, efficient and effective September NZDCM Presentation Investing in our core operations For personal use only Company Overview To improve airport coordination To improve operational effectiveness To improve passenger services Strategy for our future Information Financ
Slide 19: Strategic priority: Strengthen our consumer business
Strategic priority: Strengthen our consumer business 2018 September NZDCM Presentation Improved retail offering driving strong revenue growth New retail concepts opened 13 For personal use only Company Overview during the year • 2018 was a milestone year for our most complex project to date - the ex
Slide 20: International departures delivering an improved experience
Strategic priority: Strengthen our consumer business 2018 September NZDCM Presentation International departures delivering an improved experience For personal use only Company Overview Events during the FY18 year • Opened new enlarged security screening, ‘decompression’ and dwell areas Strategy for
Slide 21: New and exclusive names are coming
New and exclusive names are coming 2018 September NZDCM Presentation Luxury Destination Food & Beverage For personal use only Company Overview Strategy for our future Information Financial Outlook 20 Excludes existing brands
Slide 22: Focusing on what's important
Focusing on what’s important 2018 September NZDCM Presentation For personal use only Company Overview Customer Safety and Education and experience sustainability employment Strategy for our future Invested in infrastructure that has Committed to operating in a safe and Sharing the benefits of our en
Slide 23: Financial information
For personal use only Financial information
Slide 24: Strong five year financial performance
Strong five year financial performance 2018 September NZDCM Presentation For personal use only Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 CAGR $m Revenue 683.9 629.3 573.9 508.5 475.8 9.5% Expenses 177.5 156.2 143.6 128.5 120.6 10.1% Strategy for our future Earnings before
Slide 25: Growth across all revenue streams
Growth across all revenue streams 2018 September NZDCM Presentation Revenue by segment For personal use only Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 CAGR $m Strategy for our future Airfield income 122.1 119.6 103.4 93.3 87.6 8.7% Passenger services charge 179.1 174.3 154
Slide 26: Summary balance sheet
Summary balance sheet 2018 September NZDCM Presentation For personal use only Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 CAGR $m Cash 106.7 45.1 52.6 38.5 41.4 26.7% Trade and other receivables 71.5 55.5 42.3 36.6 29.0 25.3% Strategy for our future Other current assets 0.2
Slide 27: Capital expenditure
Capital expenditure 2018 September NZDCM Presentation • Capital expenditure in 2018 increased 8.1% to Historical and forecast capital expenditure For personal use only Company Overview $405.2m 600 • Over 90% of the capital expenditure is investing 500 for future earnings growth, c.$40m renewals Stra
Slide 28: Credit metrics
Credit metrics 2018 September NZDCM Presentation For personal use only Company Overview For the year ended 30 June 2018 2017 2016 2015 2014 Debt / debt + market value of equity 20.4% 19.5% 19.7% 22.5% 24.7% Debt / EBITDAFI 3.8x 4.3x 4.4x 4.5x 4.2x Strategy for our future Funds from operations / net
Slide 29: Funding
Funding 2018 September NZDCM Presentation • Reflecting increased infrastructure investment, Sources of funding For personal use only Company Overview offset by proceeds from the sale of North Queensland Airport, total borrowings at 30 June 2018 were flat with the prior year at $2,060m Commercial pap
Slide 30: Outlook
For personal use only Outlook
Slide 31: Outlook
Outlook 2018 September NZDCM Presentation Guidance For personal use only Company Overview • Moderate underlying profit growth anticipated as we enter the second year of international aeronautical price reductions in the new FY18-22 pricing period Strategy for our future and infrastructure investment
Slide 32: Questions?
For personal use only Questions?
Slide 33: Reference material and further details
Reference material and further details 2018 September NZDCM Presentation Reference material For personal use only Company Overview Auckland Airport website: https://corporate.aucklandairport.co.nz/ Strategy for our future Debt investor inquiries Campbell De Morgan, Treasury Specialist DDI: +64 9 255
Slide 34: Appendices
For personal use only Appendices
Slide 35: Board of directors
Board of directors 2018 September NZDCM Presentation For personal use only Sir Henry van der Heyden Mark Binns Brett Godfrey Julia Hoare Chair Director Director Director James Miller Justine Smyth Christine Spring Dr Patrick Strange Director Director Director Director 34
Slide 36: Significant land holdings
Significant land holdings 2018 September NZDCM Presentation For personal use only Auckland Airport boundary Auckland CBD • Auckland Airport owns approximately 1,500 hectares of freehold land (250 hectares available for investment property development, bounded by the blue line and sea shore) • Vacant
Slide 37: Runway movements growing
Runway movements growing 2018 September NZDCM Presentation Aircraft movements For personal use only 200,000 180,000 160,000 140,000 Domestic aircraft 120,000 114,366 118,583 movements 100,000 110,832 107,454 104,264 107,944 International aircraft 80,000 movements 60,000 40,000 44,314 45,809 46,692 4
Slide 38: Underlying profit reconciliation
Underlying profit reconciliation 2018 September NZDCM Presentation 2018 2017 For personal use only Reported Underlying Reported Underlying For the year ended 30 June profit Adjustments profit profit Adjustments profit $m $m $m $m $m $m EBITDAFI 506.4 - 506.4 473.1 - 473.1 Share of profits of associa
Slide 39: Important Notice and Glossary
Important Notice and Glossary 2018 September NZDCM Presentation Disclaimer For personal use only This presentation is for preliminary information purposes only and is not an offer to sell or the solicitation of any offer to purchase or subscribe for any financial products and no part of it shall for
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