Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 FY2020 Earnings Presentation
34 slides from Auckland International Airport's earnings presentation, Feb 20, 2020
Slide 1: Interim Results Presentation
Interim Results Presentation 20 February 2020 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Disclaimer
Disclaimer 2020 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, purch
Slide 3: Highlights
~ Sal ~<a Highlights
Slide 4: Interim results at a glance
Interim results at a glance 2020 Interim Results Highlights Revenue EBITDAFI Underlying Profit after tax profit1 performance $374.7m $279.2m $139.9m $147.2m Financial 1.1% 0.8% 2.2% unchanged Our continuing journey Passenger Capital Operating Underlying movements investment cashflow earnings per sha
Slide 5: Diversified, resilient and growing revenues
Diversified, resilient and growing revenues 2020 Interim Results Highlights Aeronautical Retail Transport performance Financial $151.9m revenue (3.6%) $113.6m revenue 2.5% $34.3m revenue 4.3% New direct routes to Seoul and Solid, resilient income growth and Capacity led revenue growth Our continuing
Slide 6: Coronavirus (Covid-19) is evolving quickly
Coronavirus (Covid-19) is evolving quickly 2020 Interim Results Covid-19 presents a challenge to the industry Covid-19 confirmed cases by date Highlights • The recent Covid-19 outbreak is impacting the tourism industry 4,500 80,000 across the globe as travel restrictions and reductions in airline Cu
Slide 7: Substantial investment underway
Substantial investment underway 2020 Interim Results Highlights performance Financial Our continuing journey Airfield expansion and redevelopment – stands and taxiways Northern road network (artists impression) New international arrivals area render Indicative location of new Domestic Jet Hub Mercur
Slide 8: Outlook and guidance
Outlook and guidance 2020 Interim Results Profit guidance1 Highlights • Covid-19 impact on FY20 underlying profit is uncertain. Current forecast is approximately $10m after tax impact in 2H FY20 over both aeronautical and non-aeronautical revenues. Assumes increasing impacts over March/April and a g
Slide 9: Financial performance
Financial performance
Slide 10: Revenue and EBITDA growth continues
Revenue and EBITDA growth continues 2020 Interim Results For the six months ended 31 December ($m) 2019 2018 Change Highlights Revenue 374.7 370.6 1.1% Expenses 95.5 93.5 2.1% performance Financial Earnings before interest, taxation, depreciation, 279.2 277.1 0.8% fair value adjustments and investme
Slide 11: Revenue growth driven by non-aeronautical
Revenue growth driven by non-aeronautical 2020 Interim Results For the six months ended 31 December ($m) 2019 2018 Change Highlights Airfield income 60.8 64.3 (5.4)% Passenger services charge 91.1 93.3 (2.4)% performance Financial Retail income 113.6 110.8 2.5% Car park income 34.3 32.9 4.3% Our con
Slide 12: Passenger numbers moderating after multi-year growth
Passenger numbers moderating after multi-year growth 2020 Interim Results For the six months ended 31 December 2019 2018 Change Highlights International arrivals 2,715,217 2,724,021 (0.3%) International departures 2,574,181 2,570,486 0.1% performance Financial International passengers excluding tran
Slide 13: Lower aircraft movements and MCTOW in the period
Lower aircraft movements and MCTOW in the period 2020 Interim Results Highlights For the six months ended 31 December 2019 2018 Change Aircraft movements International aircraft movements 28,616 29,101 (1.7%) performance Financial Domestic aircraft movements 59,974 61,776 (2.9%) Total aircraft moveme
Slide 14: Prudent opex management
Prudent opex management 2020 Interim Results For the six months ended 31 December ($m) 2019 2018 Change Highlights Staff 30.6 29.8 2.7% Asset management, maintenance and airport operations 42.5 38.6 10.1% performance Financial Rates and insurance 8.9 7.9 12.7% Marketing and promotions 5.6 5.5 1.8% O
Slide 15: Associates' performance
Associates’ performance 2020 Interim Results Highlights For the six months ended 31 December ($m) 2019 2018 Change Queenstown Airport (24.99% ownership) Total Revenue 29.1 25.3 15.0% performance Financial EBITDA 20.4 17.4 17.2% Underlying Earnings (Auckland Airport share) 2.7 2.1 28.6% Our continuin
Slide 16: Capital expenditure
Capital expenditure 2020 Interim Results Significant increase in capital spend in 1H FY20 Historical capital expenditure Highlights • Capital spend of $230.8m in the first half of FY20, up 700 74% on the first half of FY19 • Key aeronautical projects undertaken in the period performance 600 Financia
Slide 17: Funding position
Funding position 2020 Interim Results • Total borrowings at 31 December increased to Drawn debt maturity profile Highlights $2,376m, up 8.5% versus 30 June Less than 1 year • Committed undrawn facility headroom at 31 December of c.$283.9m performance 1 to 3 years Financial • Committed to our A- cred
Slide 18: Our continuing journey
Our conti inuing journey
Slide 19: Growing travel and trade markets
Strategic priority: Growing travel and trade markets 2020 Interim Results Capacity constraints have led to strengthening load factors1 Highlights Capacity Passengers Domestic -2.8% -1.2% International -1.1% -0.1% Total ex Transits -1.9% -0.6% performance Financial North America Capacity: -0.3% North
Slide 20: Growing travel and trade markets: China and Australia
Strategic priority: Growing travel and trade markets 2020 Interim Results China direct passenger growth while indirect slows Australia changing airline partnerships and fewer Highlights (pre Covid-19) indirect PAX 1,200,000 -5.6% in 1H (23%) FY20 100.0% Chinese nationals to/from 1,000,000 Tasman PAX
Slide 21: Resilient long term passenger growth
Resilient long term passenger growth 2020 Interim Results The long term fundamentals of travel and trade markets are strong Highlights International including Transits Domestic 20.0 performance Financial Sub Prime Crisis and Christchurch Our continuing Earthquake Annual passengers (millions) 15.0 Gl
Slide 22: Invest for future growth: four anchor projects in execution
Strategic priority: 2020 Invest for future growth Interim Results Four anchor projects are now in execution phase 2 Northern road network 6 Northern runway 8 New cargo precinct Multi-storey carpark and a new 7 1 Northern stands & taxiways pick up and drop off 4 New international arrivals 5 New domes
Slide 23: Substantial work is underway on our anchor projects
Strategic priority: 2020 Invest for future growth Interim Results Substantial work is underway on our anchor projects Highlights 1 Northern stands and taxiways • Construction is now underway on two new taxiways and six performance remote aircraft stands covering more than 250,000m2 Financial • Inves
Slide 24: International arrivals anchor project underway
Strategic priority: 2020 Invest for future growth Interim Results 4 $350 million-plus international arrivals anchor project Highlights underway • Agreed key elements in collaboration with border agencies and airlines. Appointed Hawkins as contractor performance Financial • Enabling works began in Se
Slide 25: New Domestic Jet Hub progress
Strategic priority: 2020 Invest for future growth Interim Results 5 New Domestic Jet Hub progress in the first six months Highlights • Design, procurement and costing work progressing on this $1 billion-plus development. Responding to customer requirements and securing agreements with the best perfo
Slide 26: Planning and design continues on remaining anchor projects
Strategic priority: 2020 Invest for future growth Interim Results Planning and design continues on remaining anchor Highlights projects 6 Northern runway performance • Notice of requirement is complete Financial • Progressing concept design and reviewing timing 7 Multi-storey car park and new pickup
Slide 27: Track record of successful property development
Strategic priority: 2020 Invest for future growth Interim Results Track record of successful property development $105m Investment property rent roll Highlights • Completed developments include: – 5,500m2 development leased to ASX listed Bapcor 99.4% Occupancy in the portfolio performance – Airways
Slide 28: Be fast, efficient and effective
Strategic priority: 2020 Be fast, efficient and effective Interim Results In the first six months we have… Over the next six months we are… Highlights • Launched 12 new automated pre-security gates, • Launching second stage of the automated replaced manual checking of boarding passes boarding pass s
Slide 29: Retail growth across multiple revenue streams
Strategic priority: 2020 Strengthen our consumer business Interim Results Retail growth across multiple revenue streams 2.5% Increase in retail income per Highlights international passenger • Overall retail income per passenger grew 2.5% driven by steady growth in terminal income and double-digit gr
Slide 30: Parking revenue increased following capacity additions
Strategic priority: 2020 Strengthen our consumer business Interim Results Parking revenue increased following capacity additions 13.6% Valet revenue growth Highlights • Parking income grew 4.3% supported by strong Valet demand and a 8.1% increase in parking capacity1: Online channel as % of total –
Slide 31: People, place and community
People, place and community 2020 Interim Results Highlights Customer Safety and Education and performance Financial experience sustainability employment Invest in infrastructure that enhances the Commit to operating in a safe and Share the benefits of our investment customer experience sustainable w
Slide 32: Questions
Questions
Slide 33: Appendix: underlying profit reconciliation
Appendix: underlying profit reconciliation 2020 Interim Results • The directors and management of Auckland Airport understand the importance of reported profits meeting accounting standards. Because we comply with accounting standards, investors know that comparisons can be made with confidence betw
Slide 34: Glossary
Glossary 2020 Interim Results AMTN Australian medium term notes ARPS Average revenue per parking space ASQ Airport Service Quality CAGR Compound annual growth rate EBITDA Earnings before interest, taxation, depreciation and amortisation EBITDAFI Earnings before interest, taxation, depreciation, fair
Auckland International Airport — H1 FY2020 Earnings Presentation on 6ix