Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (October 2017)
33 slides from Auckland International Airport's debt investor presentation, October 2017
Slide 1: October 2017 NZDCM Presentation
October 2017 NZDCM Presentation
Slide 2: Important Information
Important Information 2017 October NZDCM Presentation Important Information 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 Conduct Act 2013 (FMCA). Except for the interest rate and the maturity
Slide 3: Agenda
Agenda 2017 October NZDCM Presentation Page Company overview 1. Key Terms of the Offer 4 Strategy for our future 2. Company overview 5 Information Financial 3. Strategy for our future 14 Outlook 4. Financial information 19 5. Outlook 26 3
Slide 4: Key Terms of the Offer
Key Terms of the Offer 2017 October NZDCM Presentation Issuer Auckland International Airport Limited (“Auckland Airport”) Company overview Direct, unsecured, unsubordinated, fixed rate debt obligations of Auckland Airport ranking equally and without preference among themselves and equally with all o
Slide 5: Company overview
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Slide 6: Auckland Airport at a glance
Auckland Airport at a glance 2017 October NZDCM Presentation 19.0 million 95 % share of long haul arrivals to Company overview New Zealand annual passengers 30 international Auckland Airport Strategy for our future airlines in 2017 46 international destinations 79 % share of international visitors t
Slide 7: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2017 October NZDCM Presentation New Zealand international airports by passenger numbers 1 Company overview • The largest airport in New Zealand Strategy for • 79% of international passengers to New our future Auckland 18.345 million* Zealand arrive or d
Slide 8: Connecting New Zealand to the world
Connecting New Zealand to the world 2017 October NZDCM Presentation Auckland Airport connects New Zealand to 46 international destinations Company overview Strategy for our future Information Vancouver Financial London Beijing San Francisco Tianjin Seoul Chengdu Tokyo Los Angeles Chongqing Houston D
Slide 9: Proven passenger growth
Proven passenger growth 2017 October NZDCM Presentation Total Passengers at Auckland Airport (excl. Transits) Company overview 20.0 Half 1 Half 2 18.0 Strategy for our future 16.0 Sub Prime Christchurch 14.0 Annual passengers (m) Crisis and Information Earthquake Financial Global Avian Flu Recession
Slide 10: Compares favourably to Australasian airports
Compares favourably to Australasian airports 2017 October NZDCM Presentation Passenger growth rates %* International vs domestic passenger Company overview mix (thousands)* 12.0% 11.0% Strategy for our future 10.0% Brisbane 5,638 17,242 8.9% 8.2% 8.4% 8.0% 6.9% 6.9% Christchurch 1,656 4,911 Informat
Slide 11: Strong growth across the business
Strong growth across the business 2017 October NZDCM Presentation Aeronautical Retail Car park Company overview $293.9m revenue, 13.8% $162.8m revenue, 5.2%1 $56.3m revenue, 8.1% Strategy for our future Information Financial Outlook • 47% of FY17 revenue • Diverse retail offering with • 11,489 parki
Slide 12: Strong growth across the business
Strong growth across the business 2017 October NZDCM Presentation Investment Property Hotel portfolio Associates Company overview $72.9m rent roll, 15.7% 92.1% occupancy, 3.8% $14.9m underlying profit, 29.6% Strategy for our future Information Financial Outlook • $945m investment property • Novotel
Slide 13: Regulatory environment
Regulatory environment 2017 October NZDCM Presentation Overview Company overview • Dual-till regime, with the aeronautical segment subject to information disclosure regulation under the Commerce Act ~50% of revenue is 1986 regulated1 Strategy for our future • Disclosure regime includes monitoring of
Slide 14: Strategy for our future
Strategy for our future
Slide 15: Our strategy
Our strategy 2017 October NZDCM Presentation Company Highlights 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 Grow Travel & Trade Markets Information Financial Strengthen and
Slide 16: Delivering on our ambitions
Delivering on our ambitions 2017 October NZDCM Presentation In 2013 we established several ambitious targets under our Faster, Higher, Stronger growth Company Highlights overview strategy Aspirations: Where we were in How we tracked to Strategy for our future June 2013: June 2017: 400,000 213,781 35
Slide 17: Investing for future growth
Investing for future growth 2017 October NZDCM Presentation Investing more than $1m every working day on airport infrastructure Company Highlights overview • Bold 30-year vision developed with international experts (www.airportofthefuture.co.nz) Strategy for our future • Vision based on a combined d
Slide 18: Significant projects over the next years
Significant projects over the next 5 years 2017 October NZDCM Presentation Company Highlights overview Phase 6 Arrivals and MPI expansion, check-in Phase 4 expansion Second runway Strategy for our future Pier B extension, Progressing planning 17-19 contact stands and earthworks Information Financial
Slide 19: Financial information
Financial information
Slide 20: Strong five year financial performance
Strong five year financial performance 2017 October NZDCM Presentation Company Highlights overview For the year ended 30 June 2017 2016 2015 2014 2013 CAGR NZ$m Revenue 629.3 573.9 508.5 475.8 448.5 8.8% Strategy for our future Expenses 156.2 143.6 128.5 120.6 117.6 7.4% Earnings before interest, ta
Slide 21: Growth across all revenue streams
Growth across all revenue streams 2017 October NZDCM Presentation Revenue by segment Company Highlights overview For the year ended 30 June 2017 2016 2015 2014 2013 CAGR $m Strategy for our future Airfield income 119.6 103.4 93.3 87.6 81.6 10.0% Passenger services charge 174.3 154.9 140.9 131.5 120.
Slide 22: Summary balance sheet
Summary balance sheet 2017 October NZDCM Presentation Company Highlights overview For the year ended 30 June June 2017 June 2016 June 2015 June 2014 June 2013 CAGR NZ$m Cash 45.1 52.6 38.5 41.4 69.2 (10.2%) Strategy for our future Trade and other receivables 55.5 42.3 36.6 29.0 26.8 20.0% Other curr
Slide 23: Capital expenditure
Capital expenditure 2017 October NZDCM Presentation Capital expenditure by type Company Highlights overview Guidance 450 400 Strategy for 350 Capital expenditure ($m) our future 300 250 Aeronautical Retail and car parking Information 200 Financial Infrastructure and other 150 Property development 10
Slide 24: Credit metrics
Credit metrics 2017 October NZDCM Presentation Company Highlights overview For the year ended 30 June 2017 2016 2015 2014 2013 Debt / debt + market value of equity 19.5% 19.7% 22.5% 24.7% 22.8% Strategy for our future Debt / EBITDAFI 4.3x 4.4x 4.5x 4.2x 3.5x Funds from operations / net debt 16.5% 16
Slide 25: Funding
Funding 2017 October NZDCM Presentation Debt maturity profile as at 30 June 2017 Company Highlights overview 400.0 • Auckland Airport sources debt funding 350.0 300.0 from a variety of markets and maintains 250.0 Strategy for 200.0 our future a wide range of debt maturities 150.0 100.0 • Weighted av
Slide 26: Outlook
Outlook
Slide 27: Outlook
Outlook 2017 October NZDCM Presentation Strategic review Highlights Company overview • North Queensland Airports review completed, confirming it is a highly attractive asset but not Strategy for integral to our current business strategy our future Guidance1 • Relative to recent years, more modest un
Slide 28: Reference material and further details
Reference material and further details 2017 October NZDCM Presentation Reference material Highlights Company overview Auckland Airport website: https://corporate.aucklandairport.co.nz/ Strategy for our future Debt investor inquiries Campbell De Morgan, Treasury Specialist Information Financial DDI:
Slide 29: Appendices
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Slide 30: Significant land holdings
Significant land holdings 2017 October NZDCM Presentation Auckland Airport boundary Auckland CBD • Auckland Airport owns approximately 1,500 hectares of freehold land (268 hectares available for investment property development, bounded by the blue line and sea shore) • Vacant land enables staged and
Slide 31: Runway movements growing
Runway movements growing 2017 October NZDCM Presentation Aircraft movements 180,000 160,000 140,000 120,000 107,944 114,366 Domestic aircraft 100,000 110,832 107,454 104,264 movements 80,000 60,000 International aircraft movements 40,000 44,314 45,809 46,692 49,828 54,879 20,000 0 2013 2014 2015 201
Slide 32: Underlying profit reconciliation
Underlying profit reconciliation 2017 October NZDCM Presentation 2017 2016 Reported Adjustments Underlying Reported Adjustments Underlying For the year ended 30 June profit $m profit profit $m profit $m $m $m $m EBITDAFI 473.1 - 473.1 430.3 - 430.3 Share of profits of associates 19.4 (4.5) 14.9 (8.4
Slide 33: Important Notice and Glossary
Important Notice and Glossary 2017 October NZDCM Presentation Disclaimer 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 form the basis of or be rel
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