Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2014 Earnings Presentation
27 slides from Auckland International Airport's earnings presentation, Aug 26, 2014
Slide 1: Annual Results 2014
Annual Results 2014 Auckland International Airport Limited 26 August 2014 For our future 1
Slide 2: Annual results presentation notice
This annual results presentation dated 26 August 2014 provides additional comment on the media and financial materials released before the market opened on the same date. As such, it should be read in conjunction with, and subject to, the explanations and views provided in that release.
Slide 3: Summary
Summary FY14 annual results Adrian Littlewood, chief executive
Slide 4: Delivering performance today
2014 Annual Results Delivering performance today Passenger movements Total profit UP 3.8% 15.1m international 7.7m domestic 6.9m 5.1% | international transits 0.5m 2.2% 5.5% UP 21.3% $215.9m Revenue Underlying profit UP 6.1% $475.8m UP 10.5% $169.9m Operating EBITDAFI Final dividend per share UP 7.4
Slide 5: Positioning for our future: Grow travel markets
2014 Annual Results Positioning for our future Grow travel markets • A very good year for the addition of new services, charters and capacity: Air New Zealand, Emirates, Jetstar, LAN, China Southern, Malaysia, Qantas (Perth), China Airlines and China Eastern. • These far outweighed areas of reduced
Slide 6: Positioning for our future: Strengthen our consumer business
2014 Annual Results Positioning for our future Strengthen our consumer business • FY14 sales on core trans-Tasman routes affected by AUD/NZD movement and tail end of tobacco display changes. Total passenger spend rates declined 2.4%. Spend rates in Asian growth markets strong at +10%. • Inbound toba
Slide 7: Positioning for our future: Be fast, efficient and effective
2014 Annual Results Positioning for our future Be fast, efficient and effective • Focus on cost efficiency led to a 1.1% drop in operating costs per passenger. • Progress made on goal of stronger airport collaborative decision making with building of platform for new airport operating system. • Join
Slide 8: Positioning for our future: Invest for future growth
2014 Annual Results Positioning for our future Invest for future growth Aeronautical • Announced 30-year vision for the ‘airport of the future’. A culmination of two years of strategic planning. • Completed $29 million upgrade of the existing domestic terminal. Passenger feedback is positive. Invest
Slide 9: Financial performance
performance Financial FY14 annual results Simon Robertson, chief financial officer
Slide 10: Great financial outcome
2014 Annual Results Great financial outcome Full year financial results 12 months to 12 months to Change 30 June 2014 30 June 2013 % $m $m Revenue 475.814 448.458 6.1 Expenses (120.646) (117.624) 2.6 Earnings before interest, taxation, depreciation, fair value adjustments and investments in associat
Slide 11: Healthy underlying trend
2014 Annual Results Healthy underlying trend Underlying profit 2014 2013 Reported Underlying Reported Underlying earnings Adjustments earnings earnings Adjustments earnings $000 $000 $000 $000 $000 $000 EBITDAFI 355,168 - 355,168 330,834 - 330,834 Share of profit from associates 11,632 (2,938) 8,694
Slide 12: Broad international passenger growth
2014 Annual Results Broad international passenger growth Auckland Airport passenger movements 12 months to 12 months to Change 30 June 2014 30 June 2013 % International arrivals 3,847,132 3,664,376 5.0 International departures 3,840,704 3,652,948 5.1 International passengers excluding transits 7,687
Slide 13: Broad international passenger growth
2014 Annual Results Broad international passenger growth 13
Slide 14: Larger domestic aircraft + more international frequency
2014 Annual Results Larger domestic aircraft + more international frequency Aircraft movements and MCTOW 12 months to 12 months to Change 30 June 2014 30 June 2013 % Aircraft movements International departures 45,809 44,315 3.4 Domestic aircraft movements 107,454 110,832 (3.0) Total aircraft movemen
Slide 15: International passenger growth leads to revenue growth
2014 Annual Results International passenger growth leads to revenue growth Revenue 12 months to 12 months to Change 30 June 2014 30 June 2013 % $m $m Airfield income 87.607 81.573 7.4 Passenger services charges (PSC) 131.552 120.242 9.4 Retail income 127.073 124.308 2.2 Car park income 42.815 40.370
Slide 16: Cost base maintained
2014 Annual Results Cost base maintained Expenses 12 months to 12 months to Change 30 June 2014 30 June 2013 % $m $m Staff 42.502 39.953 6.4 Asset management, maintenance and airport operations 40.310 39.607 1.8 Rates and insurance 10.081 9.707 3.9 Marketing and promotions 13.750 14.138 (2.7) Profes
Slide 17: Capital return executed
2014 Annual Results Capital return executed • Capital return of $454 million paid to shareholders in April 2014. • Financing of capital return subsequently executed: April 2014 $150 million 3 year floating rate notes at 60bps over bank bills May 2014 $150 million 7 year fixed rate bond at 5.52% July
Slide 18: Our future
Our future FY14 annual results Adrian Littlewood, chief executive 18
Slide 19: Our future – 30-year vision launched
2014 Annual Results Our future – 30-year vision launched • Bold 30-year vision developed with international experts (www.airportofthefuture.co.nz). Very positive stakeholder feedback. • Vision is based on a combined domestic and international terminal as well as an efficient, affordable and staged d
Slide 20: Concept design for international passenger area
2014 Annual Results Concept design for international passenger area 20
Slide 21: Our future – growing travel markets
2014 Annual Results Our future – growing travel markets • Continue to focus on sustainable growth in FY15 via mix of seasonal, up gauging and frequency increases – plus new routes. • Scheduled capacity additions include: Air New Zealand and Singapore Airlines alliance (~100k seats); China Southern m
Slide 22: Responding to challenges in retail
2014 Annual Results Responding to challenges in retail • Strong programme to lift future retail performance: • Continue temporary/pop-up retail programme to test new brands and categories. • Launch new speciality and F&B concessions/refurbishments: e.g. 3WiseMen, Shaky Isles at domestic; Juicy Detai
Slide 23: Car park & hotel business expanding
2014 Annual Results Car park & hotel business expanding Car parking • Car park revenue growth of 6.1% in the financial year. • Overall average revenue per parking space increased 0.4% even with the full year of extra space added. • Valet product launched at domestic terminal to extend the premium ca
Slide 24: To shop, eat, work and play
2014 Annual Results To shop, eat, work and play • Several pre-committed projects are under construction e.g. ibis budget hotel and Hellman. • Two speculative industrial properties (Duplex and Flex 2) are also underway to fill gap in the market. Half of the Duplex has a lease commitment. • Appetite t
Slide 25: Regulation remains core to our focus
2014 Annual Results Regulation remains core to our focus • Our approach to regulation has not changed. We remain committed to: • Making information disclosure work; • Searching for innovation and productivity; • Building customer choice; and • Investing capital efficiently. • Next price setting will
Slide 26: Guidance
2014 Annual Results Guidance • We are confident in Auckland Airport’s ability to grow revenues and EBITDAFI in the 2015 financial year. • Allowing for the increased interest costs from the $454 million capital return we expect underlying net profit after tax (excluding any fair value changes and oth
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