Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 2023 Earnings Presentation
39 slides from Auckland International Airport's earnings presentation, Feb 23, 2023
Slide 1: Interim Results Presentation
Interim Results Presentation 23 February 2023 Carrie Hurihanganui Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Important notice
Important notice 2023 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,
Slide 3: Highlights
Highlights
Slide 4: Results at a glance
Results at a glance 2023 Interim Results Highlights Revenue Reported profit Passenger Interim after tax movements dividend $287.8m $4.8m 7.6m 0.0cps performance Financial 128% on 1H22 96% on 1H22 341% on 1H22 (78% of 1H19) (3% of 1H19) (71% of 1H19) Our continuing journey 1H23 earnings per share of
Slide 5: The recovery in aviation driving improved results
The recovery in aviation driving improved results 2023 Interim Results Highlights Aeronautical Retail Parking performance Financial $101.5m revenue 195% $59.4m income 761% $27.5m revenue 216% 7.6m passengers comprising: Largely reopen (ITB 87%, DTB 95%) Strong activity reflecting increased Our conti
Slide 6: Passenger numbers recovering
Passenger numbers recovering 2023 Interim Results No domestic and international travel restrictions for most of 1H23 enabled further recovery of international PAX in the six Highlights months to 31 December 2022. Total passenger numbers are expected to be back to pre-pandemic levels during 2025 • Do
Slide 7: We are 'building a better future'
We are ‘building a better future’ 2023 Interim Results Reconnecting New Zealand to the Recovery in our commercial Investment in aeronautical Highlights world through the return of businesses as system activity infrastructure and commercial property international carriers increases developments perfo
Slide 8: Financial performance
Financial performance
Slide 9: Total passenger numbers up reflecting the recovery
Total passenger numbers up reflecting the recovery 2023 Interim Results Pre-COVID % of pre- Highlights For the six months ended 31 December 2022 2021 Change 20186 COVID 2018 International arrivals 1,646,063 114,400 1,339% 2,724,021 60% International departures 1,537,116 137,518 1,018% 2,570,486 60%
Slide 10: Aircraft movements and MCTOW
Aircraft movements and MCTOW 2023 Interim Results Pre-COVID % of Pre- Highlights For the six months ended 31 December 2022 2021 Change 20187 COVID 2018 Aircraft movements International aircraft movements 19,133 8,349 129% 29,101 66% performance Financial Domestic aircraft movements 50,803 23,846 113
Slide 11: Return to underlying profit
Return to underlying profit 2023 Interim Results Highlights For the six months ended 31 December ($m) 2022 2021 Change Revenue 287.8 126.2 128% Expenses 98.8 65.9 50% performance Financial Earnings before interest, taxation, depreciation, 189.0 60.3 213% fair value adjustments and investments in ass
Slide 12: Higher PAX numbers driving improved performance
Higher PAX numbers driving improved performance 2023 Interim Results Highlights For the six months ended 31 December ($m) 2022 2021 Change Airfield income 40.9 26.2 56% Passenger charges 60.6 8.2 639% performance Financial Retail income 59.4 6.9 761% Car park income 27.5 8.7 216% Our continuing Inve
Slide 13: Operating costs
Operating costs 2023 Interim Results Highlights For the six months ended 31 December ($m) 2022 2021 Change Staff 29.5 21.7 36% Asset management, maintenance and airport operations 40.8 29.5 38% performance Financial Rates and insurance 17.4 10.4 67% Marketing and promotions 1.9 0.8 138% Our continui
Slide 14: Significant lift in capital expenditure
Significant lift in capital expenditure 2023 Interim Results Stronger aeronautical outlook and continuing demand for commercial property on the airport campus have driven a Highlights significant increase in capital expenditure in the period • Capital expenditure in the half year of $262 million9 as
Slide 15: Strong liquidity position with improved credit metrics
Strong liquidity position with improved credit metrics 2023 Interim Results Liquidity of $1,076 million to support the business Key credit metrics Highlights Test Dec-22 Jun-22 • Total drawn debt of $1,611 million at 31 December 2022, 10 an increase of 9% or $134 million on June 2022 Gearing covenan
Slide 16: Balance sheet remains strong
Balance sheet remains strong 2023 Interim Results Highlights As at ($m) Dec-22 Jun-22 Change Non-current assets 10,204.3 10,078.1 1% Property, plant and equipment 7,130.3 6,986.1 2% performance Financial Investment properties 2,848.4 2,897.4 (2)% Other non-current assets 225.6 194.6 16% Our continui
Slide 17: Our continuing journey
Our continuing journey
Slide 18: The recovery in travel is underway
The recovery in travel is underway Respond Recover Accelerate 2023 Interim Results International seat capacity serving Auckland is expected to significantly increase over the remainder of the calendar year Highlights as airlines restart previous Auckland services and launch new routes Auckland inter
Slide 19: Reconnecting New Zealand to the world
Reconnecting New Zealand to the world Respond Recover Accelerate 2023 Interim Results 23 airlines connected Auckland Airport with 35 destinations internationally as at 31 December 2022. With the restart of Highlights services and the launch of new routes, 24 airlines will connect Auckland Airport wi
Slide 20: Broad-based recovery driven from PAX mix
Broad-based recovery driven from PAX mix Respond Recover Accelerate 2023 Interim Results The recovery in aviation markets is strengthening as Kiwi outbound travellers are joined by increasing numbers of Highlights international visitors. Diverse reasons for travel and strong load factors are further
Slide 21: The recovery is not without its challenges
The recovery is not without its challenges Respond Recover Accelerate 2023 Interim Results From labour shortages, poor on-time performance, lost baggage and cost inflation to high ticket prices, a number of Highlights factors are presenting as challenges to the recovery in the aviation system Worker
Slide 22: Retail has reopened as demand recovers
Retail has reopened as demand recovers Respond Recover Accelerate 2023 Interim Results The airport retail proposition has reopened and is serving growing $8.15 Retail income per PAX Highlights international passenger numbers • Retail income of $59.4 million was up materially on the $6.9 million in t
Slide 23: Parking business is recovering well
Parking business is recovering well Respond Recover Accelerate 2023 Interim Results With a full suite of products open for the period and increased demand, Highlights parking revenue is recovering towards pre-COVID-19 levels • Transport revenue is up three-fold to $27.5 million from the prior period
Slide 24: Investment property
Investment property Respond Recover Accelerate 2023 Interim Results Development momentum, lease renewals and new quality tenants to our $133 million Rent roll Highlights portfolio continue to provide income growth and income diversification • 4.6% increase in rent roll in the six months to December
Slide 25: Continuing to invest in critical infrastructure
Continuing to invest in critical infrastructure Respond Recover Accelerate 2023 Interim Results Airline consultation on the draft 10-year aeronautical capital plan is ongoing, but expected to be completed soon. In the Highlights meantime, upgrades to key elements of the system continued, including a
Slide 26: Significant progress towards terminal integration
Significant progress towards terminal integration 2023 Interim Results Substantial enabling work continues on the design of an integrated terminal that is planned to be tightly integrated with Highlights the existing international terminal building • Detailed consultation with airline stakeholders c
Slide 27: Re-energising the airport with solar
Re-energising the airport with solar 2023 Interim Results Highlights performance Financial Our continuing journey and outlook Regulatory Artist’s illustration Auckland Airport is looking skywards as we take our first steps to generate onsite renewable energy, with plans for rooftop solar systems ato
Slide 28: Continuing on our decarbonisation pathway
Continuing on our decarbonisation pathway 2023 Interim Results Highlights performance Financial Our continuing journey and outlook Regulatory Reducing Auckland Airport’s carbon footprint through the use of electric heat pumps for heating in terminal buildings • Auckland Airport is taking our first s
Slide 29: Recent flood at Auckland Airport
Recent flood at Auckland Airport Respond Recover Accelerate 2023 Interim Results Unprecedented level of rainfall with the equivalent of over three January months’ rain falling in one day and two months Highlights of rain falling in two hours Heaviest daily rain ever recorded at the airport Multiple
Slide 30: Climate change resilience
Climate change resilience Respond Recover Accelerate 2023 Interim Results Like all major infrastructure providers, we are very conscious of how climate change will impact the future environment Highlights we operate in. We are aware of the need to design our future infrastructure to withstand the ef
Slide 31: Building a better future…
Building a better future… Respond Recover Accelerate 2023 Interim Results Re-establishing our aeronautical Driving the recovery in our Continued disciplined approach to Highlights network and supporting the recovery commercial business investment in infrastructure and in travel commercial opportunit
Slide 32: Regulatory and outlook
Regulatory and outlook
Slide 33: Regulatory
Regulatory 2023 Interim Results Consultation with airlines on aeronautical prices for PSE4 is well underway and is due to be completed by June 2023 Highlights • Prices for FY23 to FY27 (PSE4) will be determined following airline consultation on the ‘building block’ forecasts: ‒ 10-year draft capital
Slide 34: Outlook
Outlook 2023 Interim Results Guidance Highlights • As we look to the remainder of the 2023 financial year, we continue to see positive signs in the recovery of the aviation industry performance • Increased connectivity, combined with the reopening of Auckland Financial Airport’s commercial operation
Slide 35: Ka nui te mihi Auckland Airport community
Regulatory Our continuing Financial Highlights 2023 and outlook journey performance Interim Results Ka nui te mihi Auckland Airport community
Slide 36: Appendix
Appendix
Slide 37: Appendix: Associate and joint ventures
Appendix: Associate and joint ventures 2023 Interim Results For the six months ended 31 December ($m) 2022 2021 Change Highlights Queenstown Airport (24.99% ownership) Total revenue 30.0 12.7 136% performance Financial EBITDA 22.5 6.3 257% Underlying earnings (Auckland Airport share) 2.9 0.2 1,350%
Slide 38: Appendix: Underlying profit / (loss) reconciliation
Appendix: Underlying profit / (loss) reconciliation 2023 Interim Results 2022 2021 Highlights For the six months ended 31 December ($m) Underlying Underlying Reported profit Adjustments profit / (loss) Reported profit Adjustments profit / (loss) EBITDAFI per income statement 189.0 - 189.0 60.3 - 60.
Slide 39: Glossary
Glossary 2023 Interim Results AMTN Australian medium term notes Cps Cents per share DTB Domestic Terminal Building EBITDA Earnings before interest, taxation and depreciation EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates FRN Floating r
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