Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Day (November 2017)
108 slides from Auckland International Airport's investor day presentation, Nov 17, 2017
Slide 1: Auckland Airport Investor Day market advisory
For personal use only Market Advisory 17 November 2017 Auckland Airport Investor day Attached is the presentation that will be provided at the Auckland Airport investor day being held at Novotel Auckland Airport today. The presentation and accompanying videos can also be found on our website: corpor
Slide 2: Auckland Airport 2017 Investor Day
For personal use only Auckland Airport 2017 Investor Day 2017 Investor day
Slide 3: Introduction
For personal use only Introduction Sir Henry van der Heyden 2017 Investor day
Slide 4: Agenda
Agenda For personal use only 8.30am Introduction Sir Henry van der Heyden Chairman 8.35am Overview & strategy Adrian Littlewood Chief Executive Officer 9.00am Driving aeronautical growth Scott Tasker GM – Aero Commercial 9.30am Investing for future growth Steven Crook GM – Airport Development & Deli
Slide 5: Overview & strategy
For personal use only Overview & strategy Adrian Littlewood 2017 Investor day
Slide 6: What we are reaching for
What we are reaching for For personal use only We want be a great In doing so, we are New Zealand committed to making business recognised journeys better for as a world leader in our customers and creating value from partners modern airports Our vision is to be a great New Zealand business that is a
Slide 7: Auckland Airport at a glance
Auckland Airport at a glance For personal use only 22km from the CBD or ~25 mins via tunnel 19.3m annual Associates passengers • Queenstown (24.99%) $1.3b investment • Cairns and Mackay (24.55%) property 1,500 hectares of freehold land Diverse parking offering 89 retail stores across Two hotels inte
Slide 8: Strong foundations
Strong foundations For personal use only Positive exposure Strong network Attractive customer Strong development to growth markets base potential 2/3 rds of the global middle class will be 94% #1 #1 share of long haul arrivals to Highest individual footfall residents of the Asia-Pacific New Zealand
Slide 9: The evolution of our four strategic themes
The evolution of our four strategic themes For personal use only OUTCOMES WE WILL PURSUE WHAT WE WILL DO Grow travel Invest for future Strengthen our Be fast, and trade growth consumer efficient and markets business effective OUR FOUNDATIONS Safety and Customer Focus on our Operate security, always
Slide 10: Core Faster, Higher Stronger strategic themes
Core Faster, Higher Stronger strategic themes For personal use only Objective Why it matters Example measures of success1 Primary driver of sustainable value • Passenger/cargo growth Grow travel & for Auckland Airport and New • Route/market performance trade markets Zealand’s travel and trade sector
Slide 11: Our foundations
Our foundations For personal use only Objective Why it matters Example measures of success1 Safety and Ensure our people, contractors and • Safety outcomes partners can get home safely every security, always day People Our people are able and motivated to • Employee engagement focus do their best •
Slide 12: Delivering on our Faster, Higher Stronger ambitions
Delivering on our Faster, Higher Stronger ambitions For personal use only Aspirations set in early 2013 June 2013 June 2017 400,000 213,781 356,315 A decrease of 2,955 Double Chinese arrivals to 400,000 by FY17 (0.8%) in FY17 $60m Build property rent roll to $60 million by FY17 $44m $72.9m An in
Slide 13: Our track record
Our track record For personal use only Objective Example outcomes Setting high safety standard for wide number of PCBU on airport Safety and Staff health and safety engagement increased to 68% in FY17 security Employee recordable injuries down 22% in FY17 Contractor lost time injury frequenc
Slide 14: Proven passenger and earnings growth over the last five years
Proven passenger and earnings growth over the last five years For personal use only Since FY13, passengers increased at a CAGR of 7.0% and the number of Underlying profit has grown at an average rate of 12.7% driven by greater airlines using Auckland Airport is up 12% p.a. passengers and operational
Slide 15: Growth has been remarkably resilient over 50 years
Putting recent growth in context; growth has been remarkably resilient over 50 years For personal use only 50 year passenger growth trend Work begins on: 10.0 New domestic jet facility Arrivals expansion 9.0 Second runway New International international terminal Pier B opens 8.0 terminal opened expa
Slide 16: Setting up for the next years
Setting up for the next 50 years For personal use only Investment today… …enables tomorrow’s growth 30 year master plan Principled airport development Enables 30+ years of growth supported Planning addressing legacy issues by efficient and timely development Development consents in place Lowers futu
Slide 17: Focus for FY18 and key themes for today
Focus for FY18 and key themes for today For personal use only Themes for today Grow travel & trade markets • Grow, sustain, diversify capacity and market mix • Continue pursuing multiple route development opportunities and drive off-peak demand Invest for future growth • Deliver on our capital plan
Slide 18: Driving aeronautical growth
For personal use only Driving aeronautical growth Scott Tasker 2017 Investor day
Slide 19: Aeronautical business
Aeronautical business For personal use only 55% 65 30 The busiest airport in New International 46 international destinations and International airlines and Zealand passengers 19 domestic destinations 5 domestic airlines Market fundamentals Located in the high growth Asia- New Zealand remains 3,635 m
Slide 20: Significant increase in connectivity over the last two years
Significant increase in connectivity over the last two years For personal use only Network 11 18 +20% FY15-17 New Routes New Destinations Capacity Added Tianjin Chongqing Beijing Haneda San Francisco Chengdu Osaka Los Angeles Dubai Shanghai Shenzhen Houston Doha Hong Kong Manila Ho Chi Minh City Rar
Slide 21: Growth driven by a supportive macro environment
Growth driven by a supportive macro environment For personal use only Singapore jet fuel (USD) 200 150 100 50 0 New Zealand is underserved Aircraft technology is making more Jet fuel remains ~30% lower than long haul routes to New Zealand three years ago1 viable and more profitable 2015 2035 118.4 m
Slide 22: Structural change in airline economics is enabling supply
Structural change in airline economics is enabling supply For personal use only Step change in economics to serve New Zealand from next generation Proportion of next generation aircraft still aircraft remains relatively low 100% Auckland Airport seat capacity served 80% by next generation aircraft C
Slide 23: New Zealand tourism can continue to grow sustainably
With the appropriate investment New Zealand tourism can continue to grow sustainably For personal use only New Zealand tourism density is low compared with The New Zealand government is investing in tourism infrastructure peer group countries and hotel capacity constraints are forecast to ease Visit
Slide 24: Active approach to developing tourism markets
Active approach to developing tourism markets For personal use only Strategy Outcome Auckland’s airline network has the Airline capacity right capacity to the right destinations to serve demand Diversify markets Consumers and Source channels in target Grow capacity markets have markets desire and ab
Slide 25: Demand for travel to New Zealand remains high
Demand for travel to New Zealand remains high For personal use only Hong Kong China Japan Canada 15% 36% 26% 33% Germany 42% 37% 48% 33% UK S.Korea USA 24% Taiwan 32% 42% Philippines 38% India Brazil 35% 24% Chile 38% New Zealand = underserved demand Domestic for travel to New Zealand 29% 39% 25% Ar
Slide 26: China direct flights have increased NZ's competitiveness
China direct flights have increased NZ’s competitiveness as a destination and opened up SE Asia routes For personal use only Modelled passenger flows in IATA Northern Summer 2015 2017 North Asia 7% 10% Seats on SE Asia routes opened China direct services have up to other passenger flows as Non Stop
Slide 27: Chinese market is evolving quickly
Chinese market is evolving quickly For personal use only Chinese passenger mix has changed significantly towards We remain confident in future Chinese passenger growth higher value independent travellers 400,000 +350m Rolling 12 month Chinese visitor visa Shopping as a reason for vising 350,000 othe
Slide 28: Driving passenger demand from the China market
Driving passenger demand from the China market For personal use only Market Gap Supporting and Opportunities Partnering with Airlines 2017 Investor day 27
Slide 29: Direct Middle East flights transformed European visitation
Direct Middle East flights transformed European visitation For personal use only Modelled passenger flows in IATA Northern Summer 2015 2017 North Asia 3% 9% Middle East direct flights China create a one stop 3% 7% connection to 40 European North America cities, increasing Middle East (via AUS) SE As
Slide 30: India is underserved
India is underserved, traffic flows through multiple hubs similar to China flows before direct flights to New Zealand For personal use only Modelled passenger flows in IATA Northern Summer 2015 2017 China 7% 6% Due to the absence of direct India – New Zealand flights all North Asia passengers must t
Slide 31: 13.7 million Indians are actively considering travel to New Zealand
13.7 million Indians are actively considering travel to New Zealand For personal use only …and New Zealand is capturing an Indian outbound departures are increasing share, but still only represents Indian visitors often travel in the off peak growing rapidly… 0.3% of total outbound departures1 seaso
Slide 32: Route development is focused on multiple opportunities for growth
Route development is focused on multiple opportunities for growth For personal use only India direct China direct capacity capacity Year-round US carriers Middle East Incremental carriers growth Asia Choice for domestic travellers Competition and choice Hub carrier scale 2017 Investor day 31
Slide 33: Market development focused on driving off peak demand
Market development is focused on driving off peak passenger demand For personal use only Australian market Australian winter United States Auckland as a short break market Driving demand across the year destination North Island as a winter holiday destination China SE & North Asia, UK/EU, Argentina
Slide 34: Driving aeronautical growth summary
Driving aeronautical growth summary For personal use only Grow travel & trade markets • New Zealand is underserved • Macro environment is supportive of continued growth • Strategy to grow, sustain, diversify capacity and market mix • Market development work is focused on driving off-peak demand and
Slide 35: Market development activity is extensive
Market development activity is extensive For personal use only Online link to video: https://vimeo.com/231978222/b99f7de826 2017 Investor day 34
Slide 36: Investing for future growth
For personal use only Investing for future growth Steven Crook 2017 Investor day
Slide 37: Substantial growth and asset renewal driving capital investment
Substantial growth and asset renewal driving capital investment For personal use only As growth has Regulated Capex & Pax Volumes FY8-FY22 accelerated, capital 700 25 spend has been brought forward to meet demand 600 20 We invested 80% more capex than planned in 500 PSE2 15 400 Pax (m) Capex ($m) 30
Slide 38: Fundamental change in masterplan after airline feedback
Fundamental change in masterplan after airline feedback led to significant planning demands, but development continued in parallel For personal use only 2012 2013 2014 2015 2016 2017 Primary NTF Masterplan updated Airport Development Plan Terminal Development Plan planning Masterplan reset Consolida
Slide 39: Considerable expertise put in place
Considerable expertise put in place For personal use only Step change in the airport’s delivery capability That have worked on some of the worlds leading infrastructure projects 2013 2017 Industry leadership on the delivery team 4 11 Heathrow T5 Melbourne Airport Hamad Airport Qatar Expansion Airpor
Slide 40: Supported by key partnerships
Supported by key partnerships For personal use only Examples Delivery specialists / partners Supported by key partners and a Execution highly experienced specialists Board Key relationships 2017 Investor day 39
Slide 41: Adding leading systems, tools and technology
Adding leading systems, tools and technology to enhance long term capability For personal use only Opportunities • 3D project models integrate with schedule and cost to drive efficient and effective collaborative planning • Stakeholder VR visualisation of the 5 dimensional BIM built environment duri
Slide 42: An illustration of our project tool: efficiency through BIM
An illustration of our project tool: efficiency through BIM For personal use only 2017 Investor day 41
Slide 43: Our investment in capability is delivering results
Our investment in capability is delivering results For personal use only 100% Investment against plan1 100% Completed against plan1 97% Incepted against plan1 >40 Projects over $1m delivered 1/5 Construction accident 50,000 sqm of new or completely since 2015 frequency rate refurbished terminal spac
Slide 44: Our programme over the next five years
Our programme over the next five years For personal use only 2017 Investor day 43
Slide 45: International departures expansion
Phase 3 – International departures expansion For personal use only Key benefits: • ~35,000 sqm of new and New farewell refurbished floor space area • Doubled capacity for departure processing including customs Void clearance and security infill New truck dock & screening emigration • New decompressi
Slide 46: New Domestic Jet Terminal
New Domestic Jet Terminal For personal use only Key benefits: • Integrated terminal allowing direct access between domestic and international travel • Step change increase in passenger processing capability • Common landside functions • Swing operations on the airfield • New airline lounge facilitie
Slide 47: Northern Runway
Northern Runway Key benefits: For personal use only • A step change in runway capacity • Enhanced resilience to the airport runway system Timing: • Around 2028 based on forecast demand Next steps: • Notice of requirement process underway • Working with stakeholders to maximise the efficiency of the
Slide 48: Transport
Transport Transport Nth Park & Ride Key benefits: For personal use only Key benefits: Nixon Rd Bypass • Improving land transport is a key • priority Improving land transport for Auckland Airportis a key Altitude Drive priority for Auckland Airport Tom Pearce HOV • Requires a multi-mode solution GBMD
Slide 49: Investing for future growth summary
Investing for future growth summary For personal use only Investing for future growth • Our careful planning has provided a robust platform for focused expansion • We have built an enviable team with a wealth of experience in efficient delivery • We have built solid partnerships with key stakeholder
Slide 50: Q&A
For personal use only 2017 Investor day Q&A
Slide 51: Enhancing the retail experience
For personal use only Enhancing the retail experience Richard Barker 2017 Investor day
Slide 52: Auckland Airport's retail business
Auckland Airport’s retail business For personal use only Retail income Other, 13% PSR x PAX = Sales Sales x Yield = Concession income Retail income is largely driven by Retail income is the greater of the the international minimum annual guaranteed rent by terminal retailer and the concession income
Slide 53: What is unique about our retail business
What is unique about our retail business For personal use only #1 >$10b 2x Highest individual footfall Size of domestic retail Retail sales growth p.a. vs of any retail operator in New markets we compete in equivalent high street and Zealand shopping mall competitors in greater Auckland Source: Mark
Slide 54: Retail income has grown at a CAGR of 5.7% since FY08
Retail income has grown at a CAGR of 5.7% since FY08 For personal use only Retail income growth driven by: passenger growth, strong Retail income per passenger has trended up over the last ten leasing program, new space and continuous upgrade of offer years, but at a slower rate. Our challenge is to
Slide 55: Retail performance compares well to industry benchmarks
Retail performance compares well to industry benchmarks For personal use only Retail productivity fares well compared with Income per international passenger is on par Terminal retail sales are growing faster Sydney, consistent with temporary limited with Melbourne, which has similar than the wider
Slide 56: Retail and parking strategy focused on three horizons
Retail and parking strategy is focused on three horizons For personal use only To provide a solid foundation for growth and remain relevant to our customers we are focused on achieving the following objectives: 1 2 3 Leverage physical travel 3 Extending reach and Strengthen the relationship retail m
Slide 57: New way of segmenting customers drives Strata Club
New way of segmenting our customers is driving force behind Strata Club For personal use only Traditionally we measured retail performance by passenger …however we can now also add a customer lens to our market aligned to passenger growth by route/region… approach International Duty Free PSR by coun
Slide 58: Multi-Retailer Mall will leverage strong growth in e-commerce
Multi-Retailer Mall will leverage strong growth in e-commerce For personal use only Digital and web influenced sales are growing rapidly in the We are investing in our business to enhance the online Asia-Pacific market and at Auckland Airport shopping experience Digital vs Web-influenced sales as a
Slide 59: An improved connected cross-channel customer experience
An improved connected cross-channel customer experience For personal use only A typical illustrative journey showing how we aim to extend customer touchpoints beyond the physical interaction with the airport Visit Auckland Book parking App push with offers Pick up order at Pick up order at Airport p
Slide 60: International departures expansion first stages delivered
International departures expansion first stages delivered For personal use only Doubled emigration area New lounge and duty free 2017 Investor day 59
Slide 61: International departures upgrade phasing
International departures upgrade phasing For personal use only Proposed phasing: Expanded Duty Free and Q2 FY18 Western precinct Q3 FY18 Remaining Destination offer Q4 FY18 Standalone store Q1 FY19 Specialty & Luxury High Street Additional retail storage H1 FY19 Food & Beverage area to facilitate ne
Slide 62: New and exclusive brands with more to come
New and exclusive brands with more to come For personal use only Delivered by Partridge Jewellers First NZ airport store First standalone NZ store First standalone NZ store First NZ airport store First NZ airport store First NZ airport store First standalone NZ store 2017 Investor day 61
Slide 63: Best of New Zealand and the world
Best of New Zealand and the world For personal use only • The increase in international airside dwell area and footprint will help showcase fantastic new concepts • Includes upgrades to a number of concepts operated by existing retailers providing passengers with a much improved retail experience •
Slide 64: Parking growth driven by passengers and new products
Parking growth driven by passengers and new products For personal use only diversifying +8% +101 +22 % % Car parking the product income has mix been driven passenger by a number growth Parking income Valet income Park & Ride FY17 growth (2 year CAGR) (2 year CAGR) of key factors investment including
Slide 65: Positioning our parking business for the future
Positioning our parking business for the future For personal use only +3,000 Net additional carparks brought on board between New parking products are in the pipeline FY18 and FY20, subject to demand Assessing service-based offerings to Primarily around the International terminal in advance compleme
Slide 66: What are we delivering
What are we delivering For personal use only Additional Strata Club First phase of New exclusive Upgraded Food Additional parking International brands & Beverage Close, covered, airside level 1 connected redevelopment parking New parking Strata Lounge Expanded New and MRM + Click products duty free
Slide 67: Enhancing the retail experience summary
Enhancing the retail experience summary For personal use only Investing for future growth • Adapting to market conditions and providing consumer choice Strengthen our consumer business • Executing on our vision of delivering the Best of NZ and the World • Exclusive brands with flagship store concept
Slide 68: Digital innovation
For personal use only Digital innovation Jason Delamore 2017 Investor day
Slide 69: Delivering better customer service, efficiency and value
Delivering better customer service, efficiency and value For personal use only Where we have come from? To where are we going to? Outcomes to date Known and engaged Unknown customers, 285k known customers, up customers in a multi transactional activity 65% year on year channel environment Total airp
Slide 70: Customer platform that will drive insights
Customer platform that will drive insights For personal use only Opportunities Journey mapping • Real time customer feedback enabling enhanced passenger experience • Personalised, timely and relevant E-commerce messages based on real history and behaviour • Extending customer engagement to before Mo
Slide 71: Operations platform that will drive efficiency
Operations platform that will drive efficiency For personal use only Opportunities • Real time operations data (CX, PAX, plane, ground transport) feeding real time decision making Customer feedback • Detect and address issues before they arise, or before they escalate • Streamline data and processes
Slide 72: Achieving the vision of Total Airport Management
Achieving the vision of Total Airport Management to drive productivity and efficiency of the airport system For personal use only Land Landside exit Transport Check-in Baggage Land Lounge / Baggage Claim Transport Landside Gate Handling access Boarding De-boarding Bio security Security Immigration U
Slide 73: Digital innovation summary
Digital innovation summary For personal use only Investing for future growth • Setting up scalable pan-organisation technology platforms • Utilising operational tools to optimise capital investment Be fast, efficient and effective • Greater and more effective customer engagement – Strata, Omni, AI •
Slide 74: Investment property
For personal use only Investment property Mark Thomson 2017 Investor day
Slide 75: Auckland Airport's investment property
Auckland Airport’s investment property For personal use only $1.3b 341,189m 2 $72.9m Portfolio Value - up 82% Net Lettable Area – up Rent Roll – up 65% since June 20131 55% since 2013 since June 2013 1) Includes both Investment Property and all rent generating Plant, Property and Equipment 2017 Inve
Slide 76: Investment property highlights
Investment property highlights For personal use only Accelerated development Stabilised asset base is Uniquely positioned for strategy has underpinned performing strongly growth growth • Portfolio value $1.3b – up • Record rentals achieved in • 21 new income producing from $727m in June 2013 new pro
Slide 77: Performance against Faster Higher Stronger aspirations
How did we perform against our Faster Higher Stronger aspirations? For personal use only FHS vs Recalibrated Targets Millions $110 New aspirational $100 goal of $100m $7m of hotel rent roll by FY20 EBIT included $90 $80 Rent roll ($m) $70 Project at Same Run Rate $60 Original aspirational $50 goal o
Slide 78: Strategy for the future
Strategy for the future For personal use only $100m Grow Rent Roll to $100m by FY2020 Grow hotel capacity to 900 rooms by 2020 Position Auckland Airport as New Zealand’s Transform our trade and cargo precinct and best business location grow trade volumes to and from New Zealand 2017 Investor day 77
Slide 79: Auckland industrial market
Auckland industrial market For personal use only Auckland Airport has one of the largest reserves of development- Grade A Auckland industrial vacancy ready land in the Auckland region 3.00% 2,500,000 2.50% Precinct Sizes (sqm) Auckland Industrial 2,000,000 2.00% 1,500,000 1.50% 1,000,000 1.00% 500,0
Slide 80: Portfolio snapshot
Portfolio snapshot For personal use only FY17 Revenue by category Change in revenue by category FY17 Revenue by precinct Other, 3% The Common, 3% Retail, 5% Category Change vs FY15 Altitude, 4% Commercial, 7% Industrial 1% The Terminal, 9% Ground Lease 3% Office, 8% Hotel 6% The Quad, 11% The Landin
Slide 81: Recent developments
Recent developments For personal use only Hellmann 15 Maurice Coca Worldwide Wilson Cola Agility Ave Fonterra Amatil Rohlig Logistics (Spec Quad Fuji Logistics Build) (NZ)7Ltd Xerox Logistics 2017 Investor day 80
Slide 82: Projects underway
Projects underway For personal use only Ministry of Primary Industries Ministry of Primary Industries Bunnings Distribution Centre Airways Corporation 2017 Investor day 81
Slide 83: Investing in future development capacity
Investing in future development capacity For personal use only Aligning development capacity with demand • Civil works for Phase 3B at The Landing now complete, adding 14ha of developable land • Immediate capacity to accommodate ~100,000sqm of new projects 2017 Investor day 82
Slide 84: How do we compare?
How do we compare? For personal use only Company Portfolio Value ($) WALT Occupancy Kiwi Property 2,969,000,000 5.6 98.80% Goodman 2,400,000,000 5.8 98.00% Precinct Properties 2,040,000,000 8.7 100.00% Augusta Capital 1,700,000,000 5.3 98.00% Argosy 1,440,000,000 5.59 98.60% Auckland Airport 1,321,0
Slide 85: Transitioning to an integrated airport community
Transitioning to an integrated airport community For personal use only 2017 Investor day 84
Slide 86: The Landing Business Park and The Quad Office Campus
Bypass For personal use only Altitude Drive Terminal Roads The Landing Business Park The Quad Office Campus • New Zealand’s leading mixed use business park • Airport Town Centre • Developable Land Area: >100 Ha • Retail and Recreational Facilities • Highest Standard of Design and Excellence • Premie
Slide 87: Central Connector and Gateway Bridge
For personal use only Central Connector The Central Connector is a walking cycling route that connects our airport terminals with amenities for passengers and tenants Gateway Bridge A new bridge for pedestrians and cyclists over George Bolt Memorial Drive. This will better connect our airport termin
Slide 88: Public Spaces
For personal use only Public Spaces Parks, walking and running trials, mountain biking tracks, and sports fields provide amenity to both staff and our visitors. Auckland Airport 2020 2017 Investor day 87
Slide 89: Hotels
For personal use only Ibis Hotel Future Hotel Sites New 5-Star Pullman Hotel Novotel Hotel Together with Tainui Group Holdings we are developing a new 5-star, Pullman hotel. This new 300-room hotel will be operated by Accor Hotels and located close to our international terminal. Auckland Airport 202
Slide 90: Cargo Central
For personal use only Cargo Central Long Term Asset Management Planning • Optimising Land Use • Facilitating Cargo/Trade • Land Transport Infrastructure Auckland Airport 2020 2017 Investor day 89
Slide 91: Hotel market
Hotel market For personal use only Auckland Airport hotel portfolio AIA’s Novotel compared to the Auckland 5-star hotel market $250 $250 Revenue per available room Revenue per available room $200 $200 $150 $150 $100 $100 $50 $50 $0 $0 Jan 13 Jul 13 Jan 14 Jul 14 Jan 15 Jul 15 Jan 16 Jul 16 Jan 17 Ju
Slide 92: Hotel
Hotel 3 For personal use only Pullman Hotel 300 Rooms In 50/50 partnership with Tainui Group Holdings Expected construction start date Q4 2018 Expected opening 2020 Rooftop restaurant and bar 2017 Investor day 91
Slide 93: Trade
Trade For personal use only Auckland Airport is New Zealand’s third largest Cargo Port (by value), handling >200,000 tonnes of cargo annually1 Transformational project underway to position Auckland Airport as a world class gateway for the movement of goods to, from and through New Zealand Emphasis o
Slide 94: Investment property summary
Investment property summary For personal use only Investing for the future • Position Auckland Airport as New Zealand’s best business location • Accelerate development momentum • Increase hotel capacity • Transform cargo activities and grow trade volumes to, from, and through Auckland Airport 2017 I
Slide 95: Financial management & regulation
For personal use only Financial management & regulation Philip Neutze 2017 Investor day
Slide 96: Key investment highlights
Key investment highlights For personal use only High quality New Zealand’s Maturing regulatory Exposure to growth Track record of asset with gateway environment markets delivery strong long term growth 2017 Investor day 95
Slide 97: A unique business model
A unique business model For personal use only Steady margin business Targeting operating leverage Broad business mix ~35% 76.0% EBITDAFI margin 75.5% 75.0% 74.5% 74.0% 73.5% variable costs 73.0% 2013 2014 2015 2016 2017 Even balance between regulated Considerable financial strength Own our assets an
Slide 98: What has changed?
What has changed? For personal use only In 2012 the next decade looked like this… Five years on, it now looks like this… 70% increase in 10 80% increase in year forecast pax growth FY22 RAB estimate vs PSE2 estimate 25 2.5 25 2.5 20 2.0 20 2.0 Regulated asset base, billions Regulated asset base, bil
Slide 99: Pricing completed, now focusing on delivery
Pricing completed, now focusing on delivery For personal use only Comprehensive consultation delivered reasonable Now focused on delivery aeronautical prices for PSE3 (FY18-22) Aeronautical prices in place for the five year period to 30 June 2022 Average annual change in real revenue per PAX Interna
Slide 100: How we fund the capital plan
How we fund the capital plan For personal use only Efficiently fund infrastructure while delivering fair returns for shareholders Dividends Passengers & Planes Commercial Earnings Cashflow Investors Dividend Non-cash reinvestment depreciation plan Aeronautical Commercial Funding New debt Capital man
Slide 101: Our borrowing programme
Our borrowing programme For personal use only Funding diversified across three Core funding from shorter dated Well diversified maturity profile core markets bank borrowings, medium term creates considerable flexibility for NZDCM issuance and long-term the term of debt issues offshore issues Aucklan
Slide 102: Committed to maintaining our A- credit rating
Committed to maintaining our A- credit rating For personal use only Headroom in key credit metrics Capital investment will soften credit metrics 6.0 25.0% Increasing capital 5.0 20.0% investment will lessen credit 4.0 metric headroom $454m capital 15.0% return 3.0 10.0% 2.0 Utilise capital managemen
Slide 103: Committed to operating efficiently and effectively
Committed to operating efficiently and effectively For personal use only Successfully increased operating Focus on efficiency will deliver better Our philosophy is to: efficiency outcomes Real aeronautical operating costs per PAX (2017$) $30 75.5% Provide quality $6.40 1 services $25 $6.20 75.0% $6.
Slide 104: Financial management summary
Financial management summary For personal use only Investing for the future • Capital management strategy delivering infrastructure funding flexibility and efficiency Innovation driving improved customer experience and efficiency • Managing growth with a disciplined focus on efficiency and operating
Slide 105: Wrap up
For personal use only Wrap up Adrian Littlewood 2017 Investor day
Slide 106: Summary
Summary For personal use only 2017 Investor day 105
Slide 107: Q&A
For personal use only 2017 Investor day Q&A
Slide 108: Important notice
Important notice For personal use only Disclaimer This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of
Auckland International Airport — Investor Day (November 2017) on 6ix