Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Day (2013)
125 slides from Auckland International Airport's investor day presentation, 2013
Slide 1: Investor Day 2013
Investor Day 2013 Auckland International Airport Limited
Slide 2: Agenda
Investor Day 2013 Agenda 9:00 a.m. Welcome Simon Robertson Chief Financial Officer 9:05 a.m. Faster, Higher, Stronger Adrian Littlewood Chief Executive Officer 9:35 a.m. Grow Travel Markets Glenn Wedlock General Manager - Business Development 10:20 a.m. Break 10:35 a.m. Progressing Our 30 Year Visio
Slide 3: Faster Higher Stronger 2013 Strategy Briefing
Faster Higher Stronger 2013 Strategy Briefing Investor Day 2013 Auckland International Airport Limited
Slide 4: Strong infrastructure heritage
Strong infrastructure heritage
Slide 5: Changed philosophy, improved performance, increased expectations
Changed philosophy, improved performance, increased expectations – a different business
Slide 6: Challenges & Opportunities
CHALLENGES & OPPORTUNITIES
Slide 7: Infrastructure and operations are the foundation of our business
Infrastructure and operations are the foundation of our business
Slide 8: Carefully managed infrastructure and operations are key
Carefully managed infrastructure and operations are key to the future of our company and country
Slide 9: We are in a race to capture growth in international tourism
We are in a race to capture the growth in international tourism markets
Slide 10: We can help New Zealand realise its potential
We can help New Zealand realise its potential
Slide 11: New customers are in control with changing expectations
New customers are in control and have changing expectations
Slide 12: We have a strong foundation to build upon
We have a strong foundation to build upon
Slide 13: It's more than just constructing buildings
It’s more than just constructing buildings
Slide 14: Need to inspire people and prove value of airport location
Need to inspire people and prove the value of the airport’s location
Slide 15: Technology gives us new ways of operating and communicating
Technology gives us new ways of operating and communicating
Slide 16: Evolution not revolution
Evolution not revolution
Slide 17: We want to be a great New Zealand business, world leader
We are a committed We want to be a great and talented team New Zealand business We strive to be a leader which shares the core that is a world leader in growing travel, trade values of outstanding, in creating value from and tourism. welcoming, ambitious, modern airports. and authentically New Zeala
Slide 18: Making Journeys Better
MAKING JOURNEYS BETTER
Slide 19: Stronger
STRONGER bee
Slide 20: Four strategic pillars
STRENGTHEN GROW BE FAST, INVEST OUR TRAVEL EFFICIENT FOR FUTURE CONSUMER MARKETS & EFFECTIVE GROWTH BUSINESS
Slide 21: Grow Travel Markets
Adopt an ambitious and innovative approach to driving growth from Asia Pacific markets GROW TRAVEL Build opportunity to become an MARKETS interregional hub Influence travel industry policy and set ambitious industry goals
Slide 22: Strengthen Our Consumer Business
Engage customers fully in the retail offer STRENGTHEN OUR Deliver smart capacity and revenue CONSUMER management tools BUSINESS Extend our customer reach through new space, offers and channels Extend our accommodation offer with more hotel rooms
Slide 23: Be Fast, Efficient & Effective
Transform operating capability so we can be BE FAST, passengers’ favourite airport EFFICIENT Carefully manage our capital programme & EFFECTIVE Stronger effective cost control throughout the business
Slide 24: Invest for Future Growth
Secure our development pathway towards INVEST an efficient airport of choice for airlines FOR FUTURE Build New Zealand’s greatest business GROWTH location at Auckland Airport Apply a disciplined approach to managing our investments
Slide 25: Organisation structure
GM aeronautical GM aeronautical operations commercial Chief GM financial corporate officer affairs CHIEF EXECUTIVE GM GM airport marketing & development communications & delivery GM retail GM & commercial property
Slide 26: Stronger
STRONGER bee
Slide 27: Developing Markets
Developing Markets Investor Day 2013 Auckland International Airport Limited
Slide 28: Developing Growth Market Structure
Investor Day 2013 Developing Growth Market Structure Grow Travel & Trade Markets A Key Theme of Faster, Higher Stronger • Today’s presentation is to cover four areas that are part of our approach to developing growth. • Building Auckland Airports position as an inter- regional hub. • Ambition and in
Slide 29: Strong Potential Growth: Southern Link position
Investor Day 2013 Strong Potential Growth Building “Southern Link” position • Building Link to Emerging Power Hubs e.g. CAN CGK, GRU • Connectivity to growth markets in Asia/India through hubs e.g. KUL, SIN, CAN • Building Premium Value Positioning in Asia/Europe • Linking Australasia/Asia to Americ
Slide 30: Strong Potential Growth: Southern Link route map
Investor Day 2013 Strong Potential Growth Building “Southern Link” position LHR AMS CDG Japan CAN DEL CNS PER BNE AKL SYD MEL EZE Guangzhou – Auckland
Slide 31: Strong Potential Growth
Investor Day 2013 Strong Potential Growth Building “Southern Link” position
Slide 32: Emerging cities to deliver global GDP growth
Investor Day 2013 Strong Potential Growth Building “Southern Link” position 440 Cities are to Deliver 47% of Global GDP Growth to 2025. Other Emerging Cities will account for 27% of GDP Growth .
Slide 33: Ambition 2020
Investor Day 2013 Ambition 2020 Building Arrivals to 4 Million by 2020 • Developing “HOT” markets for Growth • Creating Profitable Market Structure • Influencer Partnerships to Build Scale and Category Value
Slide 34: Ambition 2020: View of Future Customer
Investor Day 2013 Ambition 2020: View of Future Customer 000s Visitors to New Zealand 2012 2020 CAGRS Country Actual Scenario 1 Scenario 2 Scenario 3 Scenario 1 Scenario 2 Scenario 3 Australia 1,156 1,487 1,566 1,665 3.2% 3.9% 4.7% China 197 452 483 573 10.9% 11.9% 14.3% UK 190 206 213 228 1.0% 1.5%
Slide 35: Ambition 2020: View of Future Customer
Investor Day 2013 Ambition 2020: View of Future Customer
Slide 36: Growth in Chinese Traffic to Auckland Airport
Investor Day 2013 Construct Near Term View Growth in Chinese Traffic to Auckland Airport YE Jun 2009 YE Jun 2010 YE Jun 2011 YE Jun 2012 YE Jun 2013 YE Target 2014 Target 15% Growth (current 20%+) 600000 522968 422452 90% 2009-2013 330299 274516 272048 YE Jun 2009 YE Jun 2010 YE Jun 2011 YE Jun 2012
Slide 37: Ambition 2020: Size the Prize
Investor Day 2013 Ambition 2020: Size the Prize
Slide 38: Investing & Industry Alignment
Investor Day 2013 Investing & Industry Alignment Investment in Market Builds Understanding, Opportunity and Alignment to Create Growth • Auckland Airport Investment has supported greater understanding of opportunity and secured market/capacity. • Tourism New Zealand and regional tourism organisation
Slide 39: Ambition 2020: Growing India to $200M
Investor Day 2013 Ambition 2020: Growing India to $200M
Slide 40: Ambition 2020: Understand Drivers
Investor Day 2013 Ambition 2020: Understand Drivers
Slide 41: Understand Market Share and Players
Investor Day 2013 Understand Market Share and Players SQ 35% Auckland Other NZ Ports 20% Airport 80% MH 24% TG 8% CX 6% Other 7%
Slide 42: Understand Market Dynamics
Investor Day 2013 Understand Market Dynamics
Slide 43: Understand Airline Dynamics
Investor Day 2013 Understand Airline Dynamics Malaysian Airlines for example Passengers travelling between Auckland and India for the 12 months ending 31 May 2013 Passengers Share Rank Arrivals: 19,374 28.90% #2 Departures: 17,222 30.62% #2 Total: 36,596 29.69% #2 One-Stop One-Airline Travel between
Slide 44: Understand Connection Dynamics
Investor Day 2013 Understand Connection Dynamics AKL -> KUL -> India 18 hours 0 mins --W-F-- 09:20 MH174 11:45 13:15 MH 130 20:40 (Mo,Tu,We,Fr,Su) BOM (Tu,Th,Su) 20:10 MH 194 22:45 (Daily) AKL KUL HYD 22:15 MH 198 23:55 17 hours 10 mins -T-T--S (Daily) 00:15 MH132 07:40 17 hours 55 mins ---W-FS- (We
Slide 45: Understand Connection Dynamics
Investor Day 2013 Understand Connection Dynamics India -> KUL -> AKL 16 hours 35 mins M-W---- 20:20 MH 175 12:40 11:45 MH 131 21:45 (Mo,Tu,We,Fr,Su) BOM (Mo,We,Sa) 16 hours 20 mins M-WT--- 7:30 MH 195 23:55 (Daily) AKL KUL HYD 07:35 MH 199 00:45 15 hours 30 mins -T-TF-- (Daily) 22:45 MH 133 08:45 16
Slide 46: Understand Value of Market to Route
Investor Day 2013 Understand Value of Market to Route Airline A Airline B Airline C Airline D Airline E Hub A Hub B Hub C Hub D Hub E Disguised example – For illustrative purposes only
Slide 47: Connect Fares to Future Customers
Investor Day 2013 Connect Fares to Future Customers AIA /TNZ/Airline JV FIT/digital space/family market: agents, airline JV Honeymoon market
Slide 48: Know Where to Target Future Customer
Investor Day 2013 Know Where to Target Future Customer
Slide 49: Know Worth of Target Future Customer
Investor Day 2013 Know Worth of Target Future Customer
Slide 50: Know Which Target Future Customer
Investor Day 2013 Know Which Target Future Customer
Slide 51: Know Which Target Future Customer
Investor Day 2013 Know Which Target Future Customer Other 8,000 Education/Medical Business 7,000 Visit Friends And Relatives Holiday 6,000 5,000 4,000 3,000 2,000 1,000 0 Under 15 15 To 24 25 To 34 35 To 44 45 To 54 55 To 64 65+
Slide 52: Know Wants of Target Future Customer
Investor Day 2013 Know Wants of Target Future Customer
Slide 53: Market/Value Development – Agent Influencers
Investor Day 2013 Market/Value Development – Agent Influencers Wholesale Channel Target Awareness - Mono NZ New SIT/FIT Value Segments
Slide 54: Building Marketing Assets with Partners
Investor Day 2013 Building Marketing Assets with Partners Marketing Conversion Assets New Zealand China Other Asia Indonesia India/Malaysia TV/Digital/Print TV/Film/Digital/Print Digital/PR Digital/PR Digital/PR Digital/Print/PR Build awareness , Build awareness, Build value, partners & Build awaren
Slide 55: World First Partnership – New Travel Planner
Investor Day 2013 Ambition 2020 World First Partnership – New Travel Planner • Providing Scale & Reach In China • Accessing 500 Million Users • Focused on Tier 1 & Tier 2 Cities • Most Preferred with HNWI markets • Share Position - Largest “HOT” market • Largest number of Netizens • Largest E-commer
Slide 56: Our 30-year vision
Investor Day 2013 Our 30-year vision
Slide 57: Philosophy
Philosophy • Playing our part to enable New Zealand growth • Demand led • Customer focused: airlines and passengers • Commercially focused • Connected to the city • Asia-Pacific regional player • Principles based: efficient, resilient and flexible
Slide 58: Aims
Aims • Planned • Affordable • Stageable • Implementable • Permits future change • Considers environmental and community needs
Slide 59: Process
Process • International expertise: SOM and ARUP • Themes – Improving domestic capacity and passenger experience – A hub for Australasia, to & from Asia and the Americas – New Zealand’s best business location • Industry engagement has now commenced
Slide 60: Planning for growth
Planning for growth Indicative growth forecast* Current 2044 Passengers per annum 14.5m 40m Domestic/International 6.7 / 7.8 16 / 24 Air Traffic Movements pa 155,000 240,000 Aircraft Positions 56 (2-3F) 94 (11F) Estimated Terminal Area 130,000m2 322,000m2 Daily Vehicle Trips 63,000 140,000 Public Ca
Slide 61: Airfield
Airfield • Challenges – Growth increases congestion, aircraft delay and airline costs – Bigger and next generation aircraft require more space • Opportunities – Creating a hub airport for Australasia, to and from Asia and the Americas – Space for dual code F taxiways and taxilanes for efficient futu
Slide 62: Investor Day 2013
Investor Day 2013
Slide 63: Terminal precinct
Terminal precinct • Challenges – Growth can make terminal precincts and forecourts unpleasant and disorientating – Providing right passenger experience • Opportunities – Relatively unobstructed state of international terminal provides rare opportunity to create a uniquely New Zealand environment – F
Slide 64: Surface transport
Surface transport • Challenges – Growth means more pressure on land transport system – Journey time reliability – Mixing of aviation infrastructure and geography • Opportunities – Provide people with a range of travel options that meet their needs (a multi-modal system) – Allowance for rapid transit
Slide 65: Affordability
Affordability • Our 30-year vision is not a confirmed capital expenditure plan • Delivery of investment will be trigger led, subject to optimisation through detailed planning and design and supported by a business case • Aeronautical investment expected to be staged to provide a reasonable price pat
Slide 66: $2.4 billion investment over 30 years
Our high-level estimate: • A $2.4 billion investment in New Zealand’s core infrastructure over 30 years (in today’s dollars). This is based on forecast passenger growth and would result in a similar asset intensity in 2044 to today (in today’s dollars)
Slide 67: Where to from here
Where to from here • Key stakeholder engagement and briefings • Publish vision in the new year • Design of terminal capacity with industry consultation • Deliver terminal capacity
Slide 68: Preliminary conclusions
Preliminary conclusions • Auckland Airport has – The land holding to provide Auckland’s and New Zealand’s aviation needs for the foreseeable future – The land to enable capacity growth solutions in an efficient, resilient and flexible way • A resilient airport system that responds to demand – Integr
Slide 69: Be Fast, Efficient and Effective - Aeronautical Operations
Be Fast, Efficient and Effective - Aeronautical Operations Investor Day 2013 Auckland International Airport Limited
Slide 70: Fast, Efficient and Effective Operations
Investor Day 2013 Fast, Efficient and Effective Operations • Carefully managed operations at Auckland is core to our business – it earns us the right to do everything else that we do. • Being fast, efficient and effective is all about improving our performance by increasing the productivity of our a
Slide 71: Benefits for Customers, Airlines, Stakeholders and Investors
Investor Day 2013 Benefits for Customers, Airlines, Stakeholders and Investors • Driving efficiency and productivity in operations has benefits for multiple stakeholders: Passengers with higher satisfaction levels Airlines through our lower capital investment requirements Lower cost of operati
Slide 72: Runway Efficiency
Investor Day 2013 Runway Efficiency • Together with other stakeholders we are targeting a 10-20% improvement in runway capacity to a minimum of 46-47 runway movements in the busy hour • Two key projects are in place to deliver on the target: ACE (Airfield Capacity Enhancement); and A-CDM (Airpor
Slide 73: Airspace Efficiency
Investor Day 2013 Airspace Efficiency • Auckland Airport is a centre of economic activity, generating jobs and driving tourism, trade and travel. Aircraft noise is an inevitable consequence of operating a busy international airport. • SMART Approaches are part of innovative developments within the a
Slide 74: Apron Efficiency
Investor Day 2013 Apron Efficiency • Taxiway Lima was completed in July 2013. We are now optimising operations to alleviate apron congestion at Pier A. • We are now also working on improving apron congestion through optimisation of ground service equipment efficiency and space utilisation.
Slide 75: Data Management
Investor Day 2013 Data Management • We have committed to an investment in a new airport operating system platform and passenger tracking tools to greatly improve our ability to collaborate with all companies and agencies at the airport to manage in real time. • The new operating platform is in the d
Slide 76: Collaborative Operations
Investor Day 2013 Collaborative Operations • In the past year we have established a new collaborative operations group at Auckland Airport with border agencies, airlines and other service providers working closely together to drive operational improvements on a daily basis, a shift from solely a pro
Slide 77: Collaborative Operations – Building on Past Success
Investor Day 2013 Collaborative Operations – Building on Past Success Successes Challenges and gaps • New pax tracking tool • Data sharing • Set passenger processing KPIs • Data – insufficient and some quality issues • Direct exit AU/NZ passports • Growing buy in from certain stakeholders • Smartega
Slide 78: Operating Safely
Investor Day 2013 Operating Safely • For regular passengers and tourist visitors to New Zealand, we manage safety and risks and protect our customers through the establishment of sound policy, systems and routines. • We are focussed on safety and incident preparation management to prevent and mitiga
Slide 79: Be Fast, Efficient and Effective – Managing Costs
Be Fast, Efficient and Effective – Managing Costs Investor Day 2013 Auckland International Airport Limited
Slide 80: Be Fast, Efficient and Effective
Investor Day 2013 Be Fast, Efficient and Effective • Efficiency and effectiveness goes to the heart of the productivity of our assets • That productivity includes the use of our investors’ money. We respect your investment in Auckland Airport and aim to utilise that cash effectively Ensuring that
Slide 81: Operating Efficiency - Electricity Example
Consumption KWH 1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 1/07/2008 1/08/2008 1/09/2008 1/10/2008 1/11/2008 1/12/2008 FY09 1/01/2009 1/02/2009 1/03/2009 Investor Day 2013 1/04/2009 1/05/2009 1/06/2009 1/07/2009 1/08/2009 1/09/2009 1/10/2009 1/11/2009 1/12/2009 FY10 1/01/2010 1/02/2010 1/03/201
Slide 82: Investing for Future Growth - Property
Investing for Future Growth - Property Investor Day 2013 Auckland International Airport Limited
Slide 83: The District - Land Holdings
Investor Day 2013 The District - Land Holdings
Slide 84: The District - Land Holdings
Investor Day 2013 The District - Land Holdings The size of Auckland’s CBD fits easily into the land holding of Auckland Airport
Slide 85: The District - Precinct Plan
Investor Day 2013 The District - Precinct Plan
Slide 86: Land Bank
Investor Day 2013 Land Bank • 314 hectares of land identified for airport commercial development. • Land inventory is actively managed to ensure sufficient supply is available to meet market demand • Aim to have approximately 10 – 20 hectares of land ready for commercial development.
Slide 87: AIAL Portfolio Snapshot
Investor Day 2013 AIAL Portfolio Snapshot FY13 Revenue by Category FY13 Revenue by Precinct The Terminal, The Quad, Other, 2% 0.9% Ground Lease, 11.5% Cargo North, 21% 27.1% The Landing, Industrial, 48% 13.4% Hotel, 4% Altitude, 5.6% Commercial, 12% The Common, Cargo South, 4.5% Retail, 6% Office, 6
Slide 88: Portfolio Health Check - Occupancy
Investor Day 2013 Portfolio Health Check - Occupancy Company Occupancy 1. DNZ 99.6% 2. Vital Healthcare 99.5% 3. PFI 97.3% 4. Kiwi Income Property 97.2% 5. Auckland Airport 96.42% 6. Argosy 96.2% 7. Goodman 96.0% 8. National Property 95.6% 9. Precinct Properties 95.0% 10. Augusta Capital 91.0% What’
Slide 89: Portfolio Health Check - WALT
Investor Day 2013 Portfolio Health Check - WALT Company WALT 1. Vital Healthcare 11.8 years 2. Argosy 6.2 years 3. National Property 5.7 years 4. Precinct Properties 5.7 years 5. DNZ 5.6 years 6. PFI 5.5 years 7. Goodman 5.3 years 8. Augusta Capital 4.6 years 9. Auckland Airport 4.4 years 10. Kiwi I
Slide 90: Capability, Proposition & Track Record
Investor Day 2013 Capability, Proposition & Track Record • Developed capability, established proposition and established development and management track record • Over 150 years of Property Industry experience and knowledge Returns Across Market Segments – © Investment Property Databank Ltd. All rig
Slide 91: Initiatives – Keeping it Simple
Investor Day 2013 Initiatives – Keeping it Simple Build More: Rent Hotels
Slide 92: Property Strategy Phase 1 - 2009-2012
Investor Day 2013 Property Strategy Phase 1 - 2009-2012 Kick-Start Development • 2009 Strategy “Flightpath to Growth” – “Kickstart Property Development” • Complete, committed or under construction, 2009 to 31 January 2013 NZD $225 million 21 projects 2 hotels 39,000m2 office/warehouse 7,00
Slide 93: Market Demand Re-Emerging
Investor Day 2013 Market Demand Re-Emerging Auckland Average Annual Absorption m2/annum (source CBRE Market Outlook June 2013) Period Non CBD Office Auckland Industrial 5 Years to 2007 39,102 316,776 5 Years to 2012 2,941 113,236 5 Years to 2017 25,141 195,879
Slide 94: Auckland Plan Projections
Investor Day 2013 Auckland Plan Projections Great Potential for The District • Auckland Plan targets 5% annualised growth • Auckland Plan forecasts Auckland will require: 1,400 hectares of additional business land and 12.5million m2 of new floor space by 2041 2,968,000 m2 office space/129,000 em
Slide 95: Phase 2 – 2012+ Transformation
Investor Day 2013 Phase 2 – 2012+ Transformation Objective Change perception of location and strengthen workforce proposition Build non-travel footfall Create development momentum • First round of physical interventions complete 2012/2013 • 2013 + promotion and marketing
Slide 96: Phase 2 – 2012+ Transformation
Investor Day 2013 Phase 2 – 2012+ Transformation • Place – based strategy to create New Zealand’s greatest business location • Moving from a collection of projects and investments to a place and a community • Interventions: • Physical Interventions – landscape entrance features and connections • Ame
Slide 97: Build NZ's Best Business Location
Investor Day 2013 Build NZ’s Best Business Location Leveraging our PLACE based strategy, as we plan, develop, deliver, build, lease and manage the District, to build committed rent roll to $60m by 30 June 2017 What is our goal? To build New Zealand’s best business location By leveraging our place ba
Slide 98: Transformation +
Transformation + From To Management B2B B2B & B2C Style Market Position Managing a Curating a Place portfolio of assets, and a business opportunities and community projects Proposition Flexibility Flexibility Security Security Proximity Proximity +
Slide 99: Invest for Future Growth – Our Investments
Invest for Future Growth – Our Investments Investor Day 2013 Auckland International Airport Limited
Slide 100: Invest for future growth
Investor Day 2013 Invest for future growth • A key strategic objective is to make the most out of the strong assets we own. • These strong assets include: North Queensland Airports Queenstown Airport • North Queensland Airports has significant potential centred around its proximity to the fast g
Slide 101: Proximity of Cairns to Growing Asian Wealth
Investor Day 2013 Proximity of Cairns to Growing Asian Wealth
Slide 102: Land Use Plan at Cairns
Investor Day 2013 Land Use Plan at Cairns
Slide 103: Queenstown
Investor Day 2013 Queenstown Extending the day at Queenstown provides convenience for travellers Extending the day will grow volume with no additional infrastructure investment
Slide 104: Invest for future growth: four strategic filters
Investor Day 2013 Invest for future growth • Auckland Airport has and will continue to consider step-out opportunities • We will look at investments through four strategic filters: Would the acquisition support the Is the opportunity good business core growth strategy? stand-alone? E.g. Potential to
Slide 105: Strengthening Our Consumer Business
Strengthening Our Consumer Business Investor Day 2013 Auckland International Airport Limited
Slide 106: Retail and Parking summary
Investor Day 2013 Retail and Parking summary RETAIL CAR PARKING • $124.3m revenue in FY13 • $40.4m revenue in FY13 (+2.9% vs. PCP) (+10.2% vs. PCP) • 103 retail tenancies across both • 8567 parking bays terminals, many trade 20+ (public + staff). 10 ‘at- hours per day terminal’ public car parks • Co
Slide 107: Recent focus areas
Investor Day 2013 Recent focus areas RETAIL CAR PARKING • Driving productivity from existing • Demand growth and revenue space optimisation through yield • Optimising retailer mix management (online tools) • Product extensions to meet • Strict capacity management changing passenger • Selective produ
Slide 108: Recent achievements – Products and Services
Investor Day 2013 Recent achievements – Products and Services
Slide 109: Recent achievements – products and services
Investor Day 2013 Recent achievements – products and services
Slide 110: Recent achievements – products and services
Investor Day 2013 Recent achievements – products and services
Slide 111: Recent achievements – products and services
Investor Day 2013 Recent achievements – products and services
Slide 112: Recent marketing activity
Investor Day 2013 Recent marketing activity
Slide 113: Recent marketing activity
Investor Day 2013 Recent marketing activity
Slide 114: Television Advertising
Investor Day 2013 Television Advertising
Slide 115: The Retail equation
Investor Day 2013 The Retail equation Passengers x (Penetration (%) x Conversion (%)) x ATV ($) = Sales ($) x Yield (%) = Revenue ($) # of pax # of Average entering a purchases Transaction store made Value Passenger Spend Rate (PSR) Income Per Passenger (IPP)
Slide 116: Retail results and tools
Investor Day 2013 Retail results and tools PSR movement, FY13 vs FY12 • PSR grew +1.6% in FY13, excluding tobacco • Strong PSR growth in Specialty, Food and Beverage categories • Buoyant Duty Free ATVs, challenging conversion rates
Slide 117: Parking results and capacities
Investor Day 2013 Parking results and capacities Average Revenue Per Parking Space Growth $500 $450 $400 $350 $300 Growth of On Line Car Parking Revenue by Key $250 Segment Weekender Holidayer Business Multi Day Trip Business Single Day
Slide 118: Parking results and capacities
Investor Day 2013 Parking results and capacities Car Parking Capacities June 12 June 13 June 14 (f/c) DTB Public 2310 2638 2722 14% 3% Staff 500 150 150 ITB Public 2912 2974 3584 2% 21% Staff 1710 1710 1100 Park & Ride Public 695 695 1063 Staff 0 400 1089 Totals Public 5917 6307 7369 Staff 2210 2260
Slide 119: Strengthening our consumer business
Investor Day 2013 Strengthening our consumer business • Preserve our current strengths and extend our customer reach • Engage customers more fully • Smart capacity additions and revenue management
Slide 120: Key insights to guide direction
Investor Day 2013 Key insights to guide direction Regional airports benchmarking, 2012 Customer Value Measurement (CVM) research, 2013 Retail floorspace -23% (m2 per 1000 dep pax) vs peer airports International terminal: duty free, retail, food/bev Car park bays -21% (departing pax per bay) vs peer
Slide 121: Key insights to guide direction
Investor Day 2013 Key insights to guide direction Retail Spend Rates By Nationality • Chinese passengers (NZ resident + non-resident) represent 7% of all traffic, yet 14% of international terminal retail spend. • Non-resident Chinese spend rate is +166% above the overall average International Termin
Slide 122: The path ahead
Investor Day 2013 The path ahead Clear focus on PSR and ARPS growth Preserve existing Extend customer Higher customer Smart capacity strengths reach engagement add-ons • Proactively manage • Additional retail floorspace • Targeted campaigns to • Higher yields from at- retailers, exit drive participa
Slide 123: Aspirations
A PIRATIONS
Slide 124: Aspirations: Chinese arrivals, passengers, property rent
Double Chinese arrivals to 400,000 by FY17 2 2 2 2 @ 10 million intematonal ata a a passengers by FY18 Build property rent to $60m by FY17 Bai
Slide 125: What we do matters for our customers, our city, our country
What we do matters for our customers our city our country