Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 2019 Earnings Presentation
34 slides from Auckland International Airport's earnings presentation, Feb 22, 2019
Slide 1: Interim Results Presentation
Slide 2: Important notice
Important notice 2019 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 2019 Interim Results Highlights Revenue Underlying Passenger Operating profit movements cashflow $370.6m $136.9m 10.6m $155.1m performance Financial 11.5% 2.9% 3.7% 5.2% Our continuing journey and guidance EBITDAFI Earnings Aircraft Capital Regulatory per share* movements investm
Slide 5: Growth across the business
Growth across the business 2019 Interim Results Highlights Aeronautical Retail Transport performance Financial $157.6m revenue 5.8% $110.8m revenue 24.6% $32.9m revenue 4.8% Moderating passenger growth: Footprint expansion almost complete: Replacement capacity delivered: Our continuing 4.4% Internat
Slide 6: Financial performance
Financial performance. |
Slide 7: Solid growth in revenue and EBITDA
Solid growth in revenue and EBITDA 2019 Interim Results For the six months ended 31 December ($m) 2018 2017 Change Highlights Revenue 370.6 332.4 11.5% Expenses 93.5 82.3 13.6% performance Financial Earnings before interest, taxation, depreciation, 277.1 250.1 10.8% fair value adjustments and invest
Slide 8: Revenue growth across the business
Revenue growth across the business 2019 Interim Results For the six months ended 31 December ($m) 2018 2017 Change Highlights Airfield income 64.3 59.9 7.3% Passenger services charge 93.3 89.1 4.7% performance Financial Retail income 110.8 88.9 24.6% Car park income 32.9 31.4 4.8% Our continuing Inv
Slide 9: Passenger growth moderating
Passenger growth moderating 2019 Interim Results For the six months ended 31 December 2018 2017 Change Highlights International arrivals 2,724,021 2,592,506 5.1% International departures 2,570,486 2,477,695 3.7% performance Financial International passengers excluding transits 5,294,507 5,070,201 4.
Slide 10: Steady growth in movements and MCTOW
Steady growth in movements and MCTOW 2019 Interim Results For the six months ended 31 December 2018 2017 Change Highlights Aircraft movements International aircraft movements 29,101 27,984 4.0% performance Financial Domestic aircraft movements 61,776 60,129 2.7% Total aircraft movements 90,877 88,11
Slide 11: Expenses driven by business growth
Expenses driven by business growth 2019 Interim Results For the six months ended 31 December ($m) 2018 2017 Change Highlights Staff 29.8 27.3 9.2% Asset management, maintenance and airport operations 38.6 31.7 21.8% performance Financial Rates and insurance 7.9 6.7 17.9% Marketing and promotions 5.5
Slide 12: Associates' performance
Associates’ performance 2019 Interim Results Highlights For the six months ended 31 December ($m) 2018 2017 Change Queenstown Airport* Total Revenue 25.3 23.2 9.1% performance Financial EBITDA 17.4 17.0 2.4% Underlying Earnings (Auckland Airport share) 2.1 2.2 (4.5%) Our continuing Domestic Passenge
Slide 13: Funding
Funding 2019 Interim Results • Total borrowings at 31 December increased Debt maturity profile Highlights to $2,148m, 4.3% up on 30 June less than 1 year • Committed undrawn facility headroom at 31 December of c.$374m 1 to 3 years performance Financial • Committed to our A- credit rating 3 to 5 year
Slide 14: Our continuing journey
Our continuing journey.
Slide 15: Growing travel and trade markets
Strategic priority: Growing travel and trade markets 2019 Interim Results Variable growth from traveller source markets in the six months to December 2018 Highlights North Asia performance Financial Capacity 0.8% Middle East Passengers 0.1% North America Capacity 3.4% China Capacity 6.9% Passengers
Slide 16: Growing travel and trade markets: market diversification
Strategic priority: Growing travel and trade markets 2019 Interim Results Theme Observation Implication Highlights Number of destinations served Our aeronautical market 55 70 1 Our network is maturing with indirect services being replaced 2015 2018 is also more diversified with point to point travel
Slide 17: Invest for future growth
Strategic priority: Invest for future growth 2019 Interim Results Customers are seeing the benefits of our infrastructure programme Highlights Terminal • The international outbound expansion (Phase 3) project reached practical completion in February 2019 refurbishing performance Financial or extendi
Slide 18: Anchor projects
Strategic priority: Anchor projects Invest for future growth • Eight anchor projects 2019 Interim Results create significant additional aeronautical Our seven anchor projects capacity to cater for future Highlights growth Northern road network • Since setting pricing for PSE3 we have been Northern r
Slide 19: Invest for future growth: terminal timeline
Strategic priority: Invest for future growth 2019 Interim Results 1H19 2H19 FY20 and beyond Highlights Phase 3 • Principal design elements • Procurement model to be • Continue enabling works Extended outbound established developed • Complete detailed design Terminal processing & dwell • Detailed con
Slide 20: Invest for future growth: airfield timeline
Strategic priority: Invest for future growth 2019 Interim Results 1H19 2H19 FY20 and beyond Highlights • Finalised detailed design • Tender evaluation and • Taxiway Mike and Lima • Agreed design and award testing Airfield acceleration of project with • Commencement of enabling • Stand earthworks com
Slide 21: Continued momentum with 14.6% growth in rental income
Strategic priority: Invest for future growth 2019 Interim Results Continued momentum with 14.6% growth in rental income $94.0m Investment property Highlights rent roll • Development momentum maintained. Strong pre- leasing activity and new rental benchmarks set Occupancy in the 97.7% portfolio • Com
Slide 22: Be fast, efficient and effective
Strategic priority: Be fast, efficient and effective 2019 Interim Results In the first six months we have… Over the next six months we are… Highlights Capacity and effectiveness • Agreed pathway with ACE* forum to • Undertaking a check-in-to-gate biometrics increase air traffic movements to 47 per t
Slide 23: We are focused on overall system performance
Strategic priority: Be fast, efficient and effective 2019 Interim Results We are focused on overall system performance Highlights • Our quality of service is improving across • Baggage reclaim time in 1H19 continues to both terminals improve in an environment of growing pax 5.0 11:31 performance 4.1
Slide 24: Strengthen our consumer business
Strategic priority: 2019 Strengthen our consumer business Interim Results Improved retail experience driving ongoing growth New retail concepts opened 26 Highlights during the year • Retail income up 24.6% and income per passenger grew by 19.9%* as a result of the expansion to duty free and new stor
Slide 25: New retail outlets enhancing the experience
New retail outlets enhancing the experience 2019 Interim Results 2019 Interim Results Highlights performance Financial Our continuing journey and guidance Regulatory
Slide 26: Parking revenue up in line with passenger growth
Strategic priority: Strengthen our consumer business 2019 Interim Results Parking revenue up in line with passenger growth despite capacity disruptions Highlights • Parking income up 4.8%, with ARPS also up 1.9% as a result of continued demand and 36% Increase in Valet exits customer receptiveness t
Slide 27: People, place and community
People, place and community 2019 Interim Results We are continuing to prioritise safety and play our part in the community Highlights Community • 12 days of Christmas initiative in its 10th year 31% Reduction in total passenger and public injuries in 1H • Expanded the Auckland Airport Education Scho
Slide 28: Regulatory and guidance
Regulatory and guidance.
Slide 29: Regulatory update
Regulatory update 2019 Interim Results • On 1 November 2018, the Commerce Commission Highlights published its final report on Auckland Airport's aeronautical pricing for PSE3 (FY18-22), concluding that part of our targeted return over and above its 6.41% airport-sector mid-point estimate is excessiv
Slide 30: Capital expenditure update
Capital expenditure update 2019 Interim Results • Capital spend decreased in 1H19 to $132.3m Highlights Historical capital expenditure 500 • Some anchor PSE3 projects are taking longer as concept design and consultation continues with 400 the interdependencies and complexity of projects performance
Slide 31: Outlook
Outlook 2019 Interim Results Guidance Highlights • We now expect total capital expenditure in FY19 of between $280m and $330m performance • We expect underlying net profit after tax (excluding Financial any fair value changes and other one-off items) in FY19 to be between $265m and $275m Our continu
Slide 32: Questions
Questions.
Slide 33: Appendix: Underlying profit reconciliation
Appendix: Underlying profit reconciliation 2019 Interim Results 2018 2017 Highlights For the six months ended 31 December Reported Adjustments Underlying Reported Adjustments Underlying ($m) profit profit profit profit EBITDAFI per Income Statement 277.1 - 277.1 250.1 - 250.1 performance Financial S
Slide 34: Glossary
Glossary 2019 Interim Results ACE Airfield Capacity Enhancement ARPS Average revenue per parking space ATV Average transaction value EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates GBMD George Bolt Memorial Drive MCTOW Maximum certified
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