Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Day (November 2015)
143 slides from Auckland International Airport's investor day presentation, Nov 6, 2015
Slide 1: Investor Day Presentation market release
Market Release | 6 November 2015 For personal use only Investor Day Presentation Attached is the presentation that will be delivered at Auckland Airport’s Investor Day 2015 in Auckland today. Ends For further information, please contact: Investors: Campbell De Morgan +64 27 478 3243 campbell.demorga
Slide 2: Delivering for the future
For personal use only Delivering for the future Investor Day – 6 November 2015
Slide 3: Agenda
Agenda For personal use only 9:00 a.m. Phil Neutze Acting Chief Financial Officer Welcome 9:05 a.m. Adrian Littlewood Chief Executive Introduction and strategy update 9:20 a.m. Norris Carter GM, Aeronautical Commercial Growing travel markets 10:05 a.m. Judy Nicholl GM, Aeronautical Operations Operat
Slide 4: Strategy Update
For personal use only Strategy Update Adrian Littlewood Chief Executive Investor Day: 6 November 2015
Slide 5: For personal use only
For. petional 7 . , HIGHER of » ea = re >» —w—t c ae %
Slide 6: Annual Meeting 2013
For personal use only Annual Meeting 2013
Slide 7: Grow travel markets
Ji, © GROW TRAVEL MARKETS
Slide 8: 3m visitor arrivals to Aug 2015
For personal use only At 3m visitor arrivals to Aug 2015 we are at the top of the “Ambitious” targets
Slide 9: Strengthen our consumer business
Ji, SERENGTHEN OUR CONSUMER BUSINESS A
Slide 10: Be fast, efficient & effective
Ji, BE. FAST, EFFICIENT & EFFECTIVE
Slide 11: Invest for future growth
INVEST*FOR FUTURE-GROWTH
Slide 12: For personal use only
For personal use only
Slide 13: Strategic targets
For personal use only Double Chinese arrivals to 400,000 by FY17 10 million international aaaas passengers by FY18 ft i ft ft i 20 million total passengers #4488 >) 2020 a Build property rent BEER to$60m by FY17—s Pa RID
Slide 14: Growing Travel Markets
For personal use only Growing Travel Markets Norris Carter General Manager Aeronautical Commercial Investor Day: 6 November 2015
Slide 15: Strategic Framework
Strategic Framework For personal use only Grow travel markets by working with partners across the whole value chain 14
Slide 16: Growing air capacity
Growing air capacity For personal use only Airline network modelling tools are used to evaluate existing and new routes 15
Slide 17: Opportunities to grow on all routes
Opportunities to grow on all routes For personal use only China is Canada is Germany is underserved underserved underserved UK is underserved USA is Japan is underserved underserved India is Australia is Brazil is underserved underserved underserved South East Asia is Chile is underserved underserve
Slide 18: Segment view of airline routes
Segment view of airline routes For personal use only Illustrative Auckland Los Angeles 2600 passengers/week 17
Slide 19: Dynamic network flow model
Dynamic network flow model For personal use only Illustrative Alternative routes Via San Francisco, Honolulu, Sydney London Nelson Auckland Los Angeles New York Melbourne 2600 passengers/week Miami Queenstown 12% connect through Auckland 70% local traffic 30% connect through Los Angeles 18
Slide 20: North American Traffic Flows
North American Traffic Flows For personal use only High proportion of West Coast passengers between Auckland and North America 19
Slide 21: Opening eastern North America
Opening eastern North America For personal use only Two flights to different cities would carry different passengers 20
Slide 22: China Flows
China Flows For personal use only Growth in non-stop flights to/from China provides increased seat capacity for Chinese inbound travel growth and also releases capacity to/from South East Asian hubs 21
Slide 23: South East Asia and India
South East Asia and India For personal use only Growth in non-stop flights to/from China releases capacity to South East Asian hubs, enabling growth from South and East Asia 22
Slide 24: United Kingdom and Europe
United Kingdom and Europe For personal use only Middle East capacity is increasingly important 23
Slide 25: Domestic Network
Domestic Network For personal use only Domestic capacity growth supports international growth; 19% of international passenger traffic connects with the domestic network at Auckland 24
Slide 26: New airline capacity in 2015
New airline capacity in 2015 For personal use only Singapore Buenos Aires Houston Perth Domestic 25
Slide 27: Strategic Framework
Strategic Framework For personal use only Grow travel markets by working with partners across the whole value chain 26
Slide 28: Top NZ visitor markets 2015 to 2025
Top 10 NZ visitor markets 2015 to 2025 For personal use only 27
Slide 29: Four Seasons Five Senses
Four Seasons Five Senses For personal use only 28
Slide 30: Tourism Partnerships
Tourism Partnerships For personal use only 29
Slide 31: Tourism product development
Tourism product development For personal use only 30
Slide 32: Growing travel markets: summary
Growing travel markets: summary For personal use only Middle East China Grow capacity to Match capacity to unlock Europe and growth, target high India growth value travellers and year-round travel Americas Tasman Grow capacity to unlock Grow capacity visitor growth to feed the potential Auckland to
Slide 33: Operational Excellence
For personal use only Operational Excellence Judy Nicholl General Manager Aeronautical Operations Investor Day: 6 November 2015
Slide 34: Operational Excellence
Operational Excellence For personal use only . Multi Nature of our stakeholder schedule and Pace of growth environment location
Slide 35: From Silos to Structure
From Silos to Structure For personal use only Fueling Ground Baggage reclaim Handler Check in 1 Cabin cleaning Stand Allocation Bio-security Baggage Immigration sorting Ground Airport Co Handler Catering 3 Ground Handler 2 Air Traffic Emigration Apron Control Control Pushback Disposition Passenger W
Slide 36: Collaborative Vision and Measurement
Collaborative Vision and Measurement For personal use only COG Vision COG Metrics “We will work collaboratively to deliver 1. Safety a world leading customer experience 2. On Time Performance (OTP) while promoting growth for New 3. Customer experience Zealand, upholding safety and security 4. Passen
Slide 37: Structured Collaboration
Structured Collaboration Collaborative Operations Group (COG) For personal use only Purpose: Quarterly: Oversight and CEO COG Leadership Purpose: Monthly: Strategic Senior COG Continuous improvement projects Purpose: Daily COG Tactical Apron Oversize Arrivals Departures A-CDM Optimise Fragile 36
Slide 38: Airport Operating System (AOS)
Airport Operating System (AOS) For personal use only
Slide 39: AOS module: A-CDM
For personal use only AOS module: A-CDM 38
Slide 40: A-CDM Portal: one source of the truth
A-CDM Portal: one source of the truth For personal use only
Slide 41: How A-CDM works
Put together, A-CDM works like this….. For personal use only
Slide 42: Customer Service
For personal use only Customer Service
Slide 43: Airfield Efficiency and Safety
Airfield Efficiency and Safety For personal use only 42
Slide 44: Operational Compliance
Operational Compliance For personal use only
Slide 45: Being a good neighbour
Being a good neighbour For personal use only • Casper: Noise Management System • Linking communities and aviation through technology 44
Slide 46: Future operating mode
Future operating mode For personal use only 45
Slide 47: Future Vision: Joint Operations Centre
Future Vision: Joint Operations Centre (JOC) For personal use only 46
Slide 48: For personal use only
For personal use only
Slide 49: Retail & Commercial
For personal use only Retail & Commercial
Slide 50: Strengthening Our Consumer Business
FHS – Strengthening Our Consumer Business For personal use only Retail & Commercial focus areas at the last investor day: Drive the core business hard • Preserve existing strengths • Extend customer reach • Higher customer engagement • Smart capacity add-ons Secure future growth 49
Slide 51: Major achievements (Retail)
Major achievements in the last 2 years (Retail) For personal use only Utilisation of space Upgrades and enhancements Online developments 50
Slide 52: Major achievements (Transport)
Major achievements in the last 2 years (Transport) For personal use only Valet Parking Park & Ride Expansion Online Optimisation 51
Slide 53: Major achievements (Advertising, Passenger Products)
Major achievements in the last 2 years (Advertising, Passenger Products) For personal use only Advertising tender Emperor lounge & concierge services 52
Slide 54: Delivering the results (Retail)
Delivering the results (Retail) For personal use only ITB Retail Sales FY13 - Duty Free Sales FY13 - FY15 ITB F&B Sales FY13 - FY15 ITB Specialty Sales FY13 - FY15 FY15 (excl tobacco) (excl tobacco) 55% growth 3% 19% growth growth 13% growth FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY1
Slide 55: Delivering the results (Transport)
Delivering the results (Transport) For personal use only Valet Revenue per month Strong growth in Valet with revenue in the last 12 months exceeding $2m Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Spaces & ARPS % Growth YoY 7,500 Spaces ARPS % Growth 30% Added substantial capacity 20% 7,000 to our pub
Slide 56: Delivering the results (Emperor Lounge, Advertising)
Delivering the results (Emperor Lounge, Advertising) For personal use only Emperor Lounge Advertising Sales Revenue and Customers # of customers Emperor Lounge 200 6000 180 5000 160 140 4000 120 100 3000 80 2000 60 New 40 operator 1000 20 Dec-14 0 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 J
Slide 57: However, our market is changing
However, our market is changing For personal use only ITB Retail PSR FY13 vs FY15 (excl tobacco) 1% growth FY13 FY14 FY15 56
Slide 58: Market Insight: Customer Value Measurement
Market Insight: Customer Value Measurement For personal use only 57
Slide 59: Market Insight: Spend by passenger nationality
Market Insight: Spend by passenger nationality For personal use only Retail Segments by Region Size of bubble = Sales (Oct-14 to Sep-15) PAX (millions) 4.5 Australia China 4.0 Other Europe United States 3.5 United Kingdom Although passenger Other Asia growth from China 3.0 Japan is considerably Rest
Slide 60: Market Insight: Segments and market share
Market Insight: Segments and market share For personal use only Spend by customer type Opportunities to grow categories Market Share vs Category Downtown & Online Fashion 1% Jewellery 3% Technology & Entertainment 1% • NZ residents still Destination & Souvenirs 4% contribute almost 80% of total sale
Slide 61: Market Insight: Customer Journey
Market Insight: Customer Journey For personal use only Most passengers decide whether to shop at the airport before they leave home For passengers who made a purchase, Those who plan to purchase are: the decision to buy was made: 8x F&B Retail Duty Free 3x 6x More likely to More likely to More likel
Slide 62: The big moves: Retail Value Proposition
The big moves: Retail Value Proposition For personal use only Overarching concept THE BEST OF NEW ZEALAND & THE WORLD The distinctive & unique environment, culture, values, people Our place in the world 1. Enablement 2. Liberated 3. Discovery Functional Emotional Experiential What is there I want. H
Slide 63: The big moves: Duty Free Tender
The big moves: Duty Free Tender For personal use only 62
Slide 64: The big moves: Duty Free Tender
The big moves: Duty Free Tender For personal use only 63
Slide 65: The big moves: ITB expansion
The big moves: ITB expansion For personal use only *Not to scale
Slide 66: The big moves: Smart additions / capacity
The big moves: Smart additions / capacity For personal use only 65
Slide 67: Future focus areas
Future focus areas For personal use only • Deliver business results • Lease new space to deliver “Best of NZ & World” • Manage retail through construction disruption • Online transformation
Slide 68: Strengthening Customer Relationships
For personal use only Strengthening Customer Relationships Jason Delamore General Manager Marketing Investor Day: 6 November 2015
Slide 69: Marketing – New function
Marketing – New function (Jan 14) For personal use only • Building team capability – both internal and external. Ranging from creative talent to digital boffins – underpinned by project management and strong delivery • Building platforms to optimise customer knowledge – culling, or shifting effort s
Slide 70: Early Forays and Outcomes
Early Forays and Outcomes For personal use only Tourism • Successful Tourism Growth engines Partnership with MBIE significantly improved • Delivering FIT and high net worth travellers through referral channels • Digital footprints improved – seasonal campaigns targeting right segments • MOU with Tou
Slide 71: Early Forays and Outcomes
Early Forays and Outcomes For personal use only Search and • 15% YOY improvement in online digital to parking bookings and 79% YOY drive base improvement in online Emperor assets lounge bookings • 5.8M digital sessions. Mobile access grew by 27% and is now half of all our traffic • Effectiveness of
Slide 72: Core Themes
Core Themes For personal use only Outbound NZ Inbound Customer Experience Customer engagement Participate in markets Pan-business and value exchange that need support framework created (data, behaviour, (China, Australia) influence) CE and revenue are Leverage partner reach, linked – drivers vary Ma
Slide 73: Customer Experience programme
Customer Experience - an ambitious programme of activity For personal use only 72
Slide 74: Understanding customer behaviour
Understanding customer behaviour For personal use only Understanding behaviour leads to knowing what customers are doing, when and how often. The next phase is to capture who they are, predict behaviour and recognise appropriately • Unique NZ • “ASQ”- travellers per year understanding = 1.7M what ma
Slide 75: Our vision – real relationships
Our vision – real relationships For personal use only SOCIAL INTERACTION MOBILE Creating social Recognize and Being with the currency engagement respond to every customer, wherever and leveraging reach interaction, not just and whenever and the transaction before they arrive at the airport REAL-TIME
Slide 76: Developing a robust digital framework
Developing a robust digital framework For personal use only • Enabling customer choice • Enhancing end-to-end Insights & Opportunities experience (before airport- at airport- beyond airport)…where relevant Optimisation Auckland Strategy • Building depth and breadth of Airport customer knowledge and
Slide 77: Macro Digital Trends
Macro Digital Trends For personal use only Mobile (whether App or browser) is dominating the digital experience 76
Slide 78: eCommerce continues to grow
eCommerce continues to grow For personal use only 77
Slide 79: mCommerce chasing hard
mCommerce chasing hard For personal use only Mobile commerce is growing at high rates …But desktop is ‘currently’ still the engine room of online sales 78
Slide 80: NZ Context
NZ Context For personal use only NZ Retail & Consumer Goods Market $m (Categories relevant to Auckland Airport Retailers) International Auckland Airport growing mobile Online Sales presence $1,781m Retail Store Sales (22.7% growth) $3,818m (5% growth) • Approx 50% of digital traffic now via mobile d
Slide 81: Bringing campaigns to life
Bringing campaigns to life For personal use only 80
Slide 82: Coming soon – new online experience
Coming soon – new online experience For personal use only 81
Slide 83: Coming soon – new online experience
Coming soon – new online experience For personal use only Log-in for personalisation Quick home page access to key transactions and areas Featured deals and offers 82
Slide 84: Coming soon – new online experience
Coming soon – new online experience For personal use only
Slide 85: Coming soon – new online experience
Coming soon – new online experience For personal use only Quick cross-sell specific to Upgrade selected and upsell terminal options Presentment options (price, convenience, promotions)
Slide 86: Coming soon – new online experience
Coming soon – new online experience For personal use only 85
Slide 87: Coming soon – new online experience
Coming soon – new online experience For personal use only Cross-sell promotional area Shopping filters and search area Promotional and collections areas 86
Slide 88: Next steps
Next steps For personal use only Optimising • Execute on variety of projects (improving overall experience) Customer • More dynamic/ granular measures so we can target initiatives Experience more effectively • More collaboration with broad range of stakeholders (airlines, border agencies) • Provide
Slide 89: Next steps
Next steps For personal use only Exploring • Targeting repeat customers with high spend potential reward & • 40-50% of travellers park – improving online experience presents recognition more choice and enhances knowledge with Retail partners • 75% of high value customers have indicated interest in d
Slide 90: For personal use only
For personal use only 89
Slide 91: Airport Development
For personal use only AIRPORT DEVELOPMENT
Slide 92: Why? Total passenger growth
Why? For personal use only 60,000,000 40 year Total Passenger Growth 55,000,000 50,000,000 45,000,000 40,000,000 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 High Forecast Total PAX (CAGR 3.6%) Low Forecast Total PAX (CAGR 2.3%) Base Forecast Total PAX (CAGR 3.2%) Actu
Slide 93: How? Our Development Platform
How? Our Development Platform For personal use only Leading-edge planning tools • Project process • Airport Development Plan • Transport and utilities strategies Technology • GIS • BIM
Slide 94: How? Our Team
How? Our Team For personal use only • Strong internal team with international experience • International framework consultant panel We do three things • Development planning building our vision • Statutory planning obtaining permissions • Delivery design and construction 93
Slide 95: Development Planning
Development Planning Our 30-year vision For personal use only Airport Masterplan • Published 2014 • 30-year vision • High-level view Airport Development Plan • Detailed 30-year plan • Input to capital planning and pricing Planning Studies • Northern Runway • Core Infrastructure • Transport & Utiliti
Slide 96: Statutory Planning
Statutory Planning For personal use only • Proposed Auckland Unitary Plan • Notice of Requirement • Social licence
Slide 97: Delivery: Summary of key projects
Delivery Summary of key projects For personal use only
Slide 98: Key projects – to 2022
Delivery Summary of key projects – to 2022 For personal use only InTB Phase 4 Terminal Plaza Extended Pier B InTB Phase 3 Extended outbound processing & dwell InTB Phase 5 Domestic Terminal For illustrative purposes only
Slide 99: Key projects – to 2030
Delivery Summary of key projects – to 2030 For personal use only Road Northern Runway infrastructure (first stage) InTB Phase 6 Extended international arrivals Airport Rail (tentative alignment) Terminal precinct For illustrative purposes only
Slide 100: Key projects – to 2044
Delivery Summary of key projects – to 2044 For personal use only Developed road infrastructure Extended International Terminal plus Pier C Extended domestic & regional capacity For illustrative purposes only
Slide 101: Key projects – post 2044
Delivery Summary of key projects – post 2044 For personal use only Extended northern runway Additional roads infrastructure. Airport access re-alignment For illustrative purposes only
Slide 102: Our programmes
Delivery Our programmes For personal use only • Domestic Terminal • Integrated Terminal • Airfield • Transport and utilities
Slide 103: Existing Domestic Terminal
Delivery Existing Domestic Terminal For personal use only Extension and upgrade September 2014 Further extension: • Regional Stands 49 and 50 September 2015 • Western Regional Facility • Stage 1 Christmas 2015 • Stage 2 February 2016
Slide 104: Integrated Terminal
Delivery Integrated Terminal For personal use only Built in phases, a combined domestic and international terminal Phase 1.1 Additional Code F baggage belt Complete November 2014 Phase 1.2 Second additional Code F Scheduled November 2015 baggage belt Phase 2 Reconfigured inbound processing Completed
Slide 105: Phase 3: Outbound processing and airside dwell
Delivery Integrated terminal: Phase 3: Outbound processing and airside dwell For personal use only
Slide 106: Phase 3: Outbound processing and airside dwell
Delivery Integrated terminal: Phase 3: Outbound processing and airside dwell For personal use only Recompose area 105
Slide 107: Phase 3: Outbound processing and airside dwell
Delivery Integrated terminal: Phase 3: Outbound processing and airside dwell For personal use only Airside dwell 106
Slide 108: Phase 3: Outbound processing and airside dwell
Delivery Integrated terminal: Phase 3: Outbound processing and airside dwell For personal use only Airside dwell – from mezzanine 107
Slide 109: Expansion of Pier B
Delivery Integrated terminal – Phase 4 Expansion of Pier B For personal use only Deliverables Timing Bus Lounge, at ramp level December 2015 Stage 1 - Pier extension to the west December 2016 - Contact stand at gate 17 (MARS) - Remote stand 19 extended west Stage 2 - Pier extension to the north Dece
Slide 110: Airfield
Delivery Airfield For personal use only Providing capacity to meet growth • Aprons, stands and taxiways • Fuel hydrants and support services • Northern runway
Slide 111: Airfield – Northern runway
Delivery Airfield – Northern runway For personal use only Factors influencing runway capacity and timing Separation distances Peak spreading Up-gauging Fleet-mix Regulatory requirements DKMA forecast update in 2017
Slide 112: Airfield – Northern runway
Delivery Airfield – Northern runway For personal use only Design and staging based on comprehensive analysis Masterplan MACAD modelling by MIT o Existing runway has a capacity for 41-43 peak-hour movements o By comparison London Gatwick has 55 peak-hour capacity LGW AIRCRAFT MIX AKL AIRCRAFT MIX
Slide 113: Transport Strategy
Delivery Transport Strategy For personal use only Transport Strategy • Infrastructure development • Modal shift • Demand management
Slide 114: Transport – Infrastructure development
Delivery Transport – Infrastructure development For personal use only Wider network improvements Close working relationship Waterview Connection with Auckland Transport and New Zealand Transport Agency East-West link Kirkbride Road Verissimo Drive Puhinui Road
Slide 115: Transport – modal shift
For personal use only Average Daily Traffic - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 180,000 Harbour Bridge Newmarket Viaduct Vic Park SH20 - Mangere Crossing SH16 (Patiki Road) Delivery SH16 (Lincoln Road) SH18 (Caribbean Drive) SH18 (Upper Harbour Bridge) SH1 S of Warkworth re
Slide 116: Transport – Modal shift
Delivery Transport – Modal shift For personal use only Enhanced bus network – 2016 Rail
Slide 117: Transport – Demand management
Delivery Transport – Demand management For personal use only • Advancing traffic management technology • Better traffic information 116
Slide 118: Transport – Demand management
Delivery Transport – Demand management For personal use only Into the future… • Road-user charging • Transport-on-demand
Slide 119: Property
For personal use only Property
Slide 120: Highlights
Highlights For personal use only • FY15 leasing and development success lifted rent roll >20% • Airport campus attracting quality customers • Hotel portfolio performing ahead of expectations • Excellent safety record • Portfolio Value $998M (includes $235M of development land) – up 36% since 2013 •
Slide 121: Precincts
For personal use only Precincts 120
Slide 122: Faster Higher Stronger – 2013 Strategy
Faster Higher Stronger – 2013 Strategy For personal use only • Develop New Zealand’s best business location • ‘Place’ based strategy • Capability, proposition, track-record • $60M rent roll by 2017
Slide 123: Faster Higher Stronger – Status
Faster Higher Stronger – Status For personal use only Property Rent Roll - FHS vs Forecast • 2013 aspirational goal was to lift rent roll $65 to $60M by 30 June 2017 On track to deliver in FY16 $60 • FY15 was our best year ever 20% lift in rent roll $55 Millions • All hotels performing ahead of expe
Slide 124: Portfolio Snapshot
Portfolio Snapshot For personal use only FY16 Revenue by Category FY16 Revenue by Precinct Other, 3% The Terminal, The Common, 1% 4% Commercial, Altitude, 9% 6% Retail, 8% The Landing, 16% Hotel, 4% Cargo South, Office, 7% Industrial, 52% 36% The Quad, 12% Ground Lease, 17% Cargo North, 25% WALT Occ
Slide 125: Market Outlook
Market Outlook For personal use only Grade A Auckland Industrial Vacancy Prime Industrial Combined Net Effective Rents 4.5% $130 $120 3.0% $110 $100 1.5% $90 0.0% $80 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Auckland Airport Corridor Auckland
Slide 126: How do we compare?
How do we compare? For personal use only Occupancy WALT Company Occupancy Company WALT (years) Property for Industry 100% Vital Healthcare 17.6 Vital Healthcare 99.4% Stride Property 8.3 Stride Property 99.4% NPT Ltd 6.0 AUCKLAND AIRPORT 99.3% Augusta Capital 5.9 Argosy Property 98.8% Property for I
Slide 127: The Landing Business Park Stage 3B
The Landing Business Park For personal use only Stage 3B
Slide 128: The Landing Business Park
The Landing Business Park For personal use only World Class Asset • Premium product • Over 100ha of developable land Development Momentum Building • $110M of new projects in FY16 • Quality tenants, long leases Positive Outlook • Sound development pipeline
Slide 129: The Landing – Capacity
The Landing – Capacity For personal use only Stage 3B
Slide 130: The Landing – Projects under Construction
The Landing – Projects under Construction For personal use only 129
Slide 131: Speculative Building
Speculative Building For personal use only • Low vacancy levels and strong demand • $40M of speculative industrial projects embarked upon in past 18 months • 94% of projects leased prior to project completion • Construction of $13M four unit development in Timberly Place commencing in January 2016
Slide 132: The Quad Office Park
The Quad Office Park For personal use only • Campus style office park Office space 100% let • Airport community epicentre • Linking terminals via connecting boulevard and planned pedestrian bridge • Quad 7 project underway 8,500sqm grade A office space Completes November 2016
Slide 133: Hotels
Hotels For personal use only • Existing hotels performing strongly • Novotel has stabilised occupancy at 87% with strong room rate growth • Ibis budget expanded by 73 rooms in December 2014. Maintained occupancy at 89%, room rate up 5.4% • Coherent suite of hotel products • Planning advanced on hote
Slide 134: Future Focus
Future Focus For personal use only • Maintain high standard of safety performance • Accelerating development programme • Cement The Landing as NZ’s premium business park • Increase hotel capacity
Slide 135: Capital Expenditure
Capital Expenditure For personal use only Auckland Airport Capex 250 200 150 $ million 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016F Total Aeronautical Property development Infrastructure & other Retail Car parking Into phase of higher aeronautical and investme
Slide 136: Capex Principles
Capex Principles For personal use only Individual projects: Overall capex programme: • align with Faster Higher Stronger • Aeronautical programme delivers strategy affordable aero price path • business-cased • Total company capex programme consistent with maintaining credit • must meet forecast retu
Slide 137: ITB Level Redevelopment
ITB Level 1 Redevelopment For personal use only Expanded outbound processing, airside dwell and retail project (Phase 3) • Enabling works underway • Project to be delivered in 3 phases (Dec 16, Dec 17, Mar 18) • EFC - $160-$180m: • 50+ year building (may find surprises) • Possible design evolution (
Slide 138: Funding & Capital Management
Funding & Capital Management For personal use only Funding future investment Capital management: • Retained cashflow (depreciation) • No foreseeable need to raise equity • Debt: • If forecast credit metrics again First commercial paper or bank approach levels consistent with debt, then ‘term-out’
Slide 139: Auckland Airport Borrowings
Auckland Airport Borrowings For personal use only Upcoming debt facility maturities Type Maturity Date Drawn Volume The ANZ, Westpac and BNZ standby facilities all support our NZD Bond November 2015 $100m commercial paper programme, which had a balance of $92 Wpac Facility April 2016 Nil million as
Slide 140: Regulatory Environment
Regulatory Environment For personal use only • Dual-till regime under the Commerce Act 1986 with information disclosure regulation • Aeronautical till faces limited competition / subject to information disclosure regulation • Airport Authorities Act 1966 provides for and requires: Airports to set
Slide 141: PSE2 Aeronautical Returns
PSE2 Aeronautical Returns For personal use only Figures above exclude revaluations • FY15 outturn to be finalised and published end of November this year • Entire PSE2 period IRR expected to be close to 75th percentile WACC target 140
Slide 142: Commerce Commission Review
Commerce Commission Review For personal use only • ‘Input Methodology Review’ underway (December 2016 completion) • Key issues for AIAL: WACC percentile treatment of land held for future aeronautical use risk apportionment (when under/over deliver versus forecast) • Auckland Airport’s FY18-22
Slide 143: For personal use only
For personal use only
Auckland International Airport — Investor Day (November 2015) on 6ix