Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2008 Earnings Presentation
29 slides from Auckland International Airport's earnings presentation, June 2008
Slide 1: Annual results
Annual results 12 months ended 30 June 2008 Don Huse, CEO Robert Sinclair, CFO
Slide 2: Summary of 2008 results
Summary of 2008 results • International pax (exc. transits / transfers) +2.5% • Domestic pax +13.2% • Revenue $351.0m +9.0% • Operating EBITDA1 $275.8m +13.7% • Cost of ownership proposals ($9.6m) expensed • Profit after tax $113.0m -51.1% • Excluding one-off items and IPP, profit after tax $103.7m
Slide 3: 2008 highlights
2008 highlights • Strong growth in domestic pax volumes • International pax volumes positive, but below trend • Significant new capacity and facilities in place • Recent growth capex cycle now ending • New aeronautical and commercial pricing resets in place • $550m refinancing completed, strong bala
Slide 4: Ordinary dividends
Ordinary dividends FY08 FY07 Interim – cents per share (cps) 5.75 3.75 Final cps1 2.45 4.45 Total cps 8.20 8.20 TOTAL AMOUNT $100.213m $100.136m Basic earnings per share (cps) 9.24 18.91 Adjusted earnings per share (cps)2 8.49 8.23 Payout ratio3 96.6% 99.7% Shares on issue at 30 June 1,222,295,239 1
Slide 5: Passenger movements – FY08
Passenger movements – FY08 % FY08 FY07 change International pax 6,533,285 6,373,427 +2.5 Transits and transfers 929,398 912,970 +1.8 Total international pax 7,462,683 7,286,397 +2.4 Domestic pax 5,740,089 5,068,794 +13.2 TOTAL PAX MOVEMENTS 13,202,772 12,355,191 +6.9 5
Slide 6: Domestic passenger volumes
Domestic passenger volumes Monthly Domestic Passenger Growth January 2005 - June 2008 Pacific Blue announces domestic services 25% Passenger growth 20% 15% Growth on pcp 10% 5% 0% -5% 38353 38384 38412 38443 38473 38504 38534 38565 38596 38626 38657 38687 38718 38749 38777 38808 38838 38869 38899 38
Slide 7: Arriving pax at Auckland by country
Arriving pax at Auckland by country Country of last permanent residence FY08 % of total FY07 % of total % Movement change New Zealand 1,500,932 46.1 1,415,325 44.7 85,607 +6.0 Australia 536,864 16.5 514,446 16.3 22,418 +4.4 UK (incl. Ireland) 249,744 7.7 255,116 8.1 -5,372 -2.1 USA 172,225 5.3 181,7
Slide 8: Northern winter schedule update
Northern winter schedule update Northern winter schedule – landings per week1 % Carriers 2008 2007 2 change NZ/Australian 294 283 +3.9 Asian 75 76 -1.3 South American 22 20 +10.0 Pacific 21 21 0.0 Others 7 7 0.0 Total 419 407 +2.9 Source: Auckland International Airport Limited. Includes schedule cha
Slide 9: Aircraft statistics – FY08
Aircraft statistics – FY08 % FY08 FY07 change Aircraft International movements 39,053 38,406 +1.7 Domestic movements 120,574 117,469 +2.6 TOTAL AIRCRAFT MOVEMENTS 159,627 155,875 +2.4 Cargo Cargo handled (tonnes) 220,999 224,515 -1.6 MCTOW (maximum certificated take-off weight) International (tonnes
Slide 10: Financial overview
Financial overview FY08 FY07 % $m $m change Total revenue 351.0 321.9 +9.0 Operating expenses 75.2 79.2 -5.1 Operating EBITDA 275.8 242.7 +13.7 Investment property FV 13.7 140.2 -90.2 Ownership costs -9.6 0.0 -100.0 Total EBITDA 279.9 382.9 -26.9 Depreciation 47.0 43.2 +8.8 Interest expense 72.5 62.
Slide 11: Operating performance
Operating performance FY08 Adjustments FY08 FY08 FY07 % change 1 Reported Normalised TCS Normalised FY08 vs FY07 $m $m $m $m $m Normalised Revenue 351.0 351.0 341.4 321.9 +9.0 Operating expenses 75.2 4.7 79.9 73.5 69.3 +15.3 Operating EBITDA 275.8 271.1 267.9 252.6 +7.3 Investment property FV 13.7 -
Slide 12: Revenue analysis
Revenue analysis FY08 FY07 % % Aeronautical $m $m change Airfield 70.1 20.0 66.3 +5.8 Passenger services charge 67.0 19.1 64.4 +4.0 Terminal services charge 22.9 6.5 21.9 +4.6 Total aeronautical revenue 160.0 45.6 152.6 +4.9 Non-aeronautical Retail 103.4 29.5 93.7 +10.3 Rental 40.2 11.5 33.3 +20.9 C
Slide 13: Expense analysis
Expense analysis FY08 FY07 % % $m $m change Staff 24.9 12.8 36.0 -30.9 Repairs and maintenance 25.7 13.2 23.0 +11.9 Rates and insurance 7.4 3.8 6.3 +17.8 Other 17.2 8.8 13.9 +23.5 Total operating expenses 75.2 38.6 79.2 -5.1 Depreciation 47.0 24.1 43.2 +8.8 Interest 72.5 37.3 62.7 +15.6 TOTAL EXPENS
Slide 14: Statement of financial position
Statement of financial position June 08 June 07 $m $m Non-current assets 3,060 2,955 Current assets 33 28 TOTAL ASSETS 3,093 2,983 Non-current liabilities 846 689 Current liabilities 350 378 Equity 1,897 1,915 TOTAL EQUITY AND LIABILITIES 3,093 2,983 Equity ratio 61.3% 64.2% Debt to enterprise value
Slide 15: Debt maturity, liquidity and hedging
Debt maturity, liquidity and hedging 700.0 Average debt maturity 3.2 years 600.0 Maturity Fixed Interest Cover 500.0 400.0 $m 300.0 200.0 100.0 0.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Year Ended 30 June 15
Slide 16: Key financial ratios
Key financial ratios FY08 FY07 Operating margin1 77.2% 78.5% Debt / debt + equity 35.5% 32.1% Capex / depreciation (times) 3.0 2.4 Interest cover (times)2 3.1 3.3 Operating staff numbers 301 281 1 Operating EBITDA / Total revenue, excluding the change in the LTI provision 2 EBIT / Interest expense,
Slide 17: Operating efficiencies
Operating efficiencies FY08 FY07 Passengers per operating staff 43,917 43,908 Operating revenue per operating staff $1,167,648 $1,144,126 Operating revenue per pax $26.59 $26.06 Retail revenue per international pax $13.85 $12.87 Car park revenue per pax $2.38 $2.26 Operating staff costs / operating
Slide 18: Aeronautical update
Aeronautical update • Aeronautical revenue +4.9% • ITB expanded arrivals opened • DTB renovation completed • Pier B opens 21 October • Northern runway commenced • ADC replaced by PSC • Fuel price impact clear concern • Emirates A380 arrive in February • New Pacific Blue services • Route development
Slide 19: Review of regulatory regime
Review of regulatory regime • Currently regulatory environment is working well • Auckland Airport investing in timely and efficient infrastructure • Recent price increases modest at CPI or less • Auckland Airport prices similar to peer airports • Commerce Amendment Bill has far reaching implications
Slide 20: Retail update
Retail update • Retail income +10.3% • Income per intl. pax $13.85 (+7.6%) • New leases and strong performances • Car Rental, FX and F&B in particular • Domestic retail performing strongly • Travelex no longer collecting ADC • Arrivals duty-free store open • Duty-free spend softening • Domestic reta
Slide 21: Car parking update
Car parking update • Car park income $29.3m +13.0% • Strong growth from domestic • Increased usage +19% • International growth slower • Increased competition • Impact of fuel prices • Broadening product mix • Differentiated product offering • Customer choice, service standards 21
Slide 22: Property update
Property update • Rental income +20.9% • $6.7m invested during the year • Developments include: – Cargo 1 and 4 extension ($0.3m) – Hangar 5 Air National ($1.7m) – Barber Logistics ($2.2m) – NZ Post ($0.8m) and Spazio Casa ($0.4m) completing soon • North Airport re-zoning process • Planning for reta
Slide 23: Capex FY08
Capex FY08 $m Key projects Northern runway development and taxiway Airfield 11.7 reconstruction Arrivals expansion, Pier B, western International terminal 95.4 forecourt and ground power units Air NZ terminal renovation, new retail Domestic terminal 9.6 precinct and regional upgrade Domestic car par
Slide 24: Capex estimates FY09
Capex estimates FY09 FY09 $m Airfield 18 International terminal: 21 Pier B 9 First floor retail 8 Other 4 Domestic terminal 5 Car parking 3 Infrastructure and other 18 Property development 18 TOTAL CAPEX 83 • Stage 3B of the international terminal expansion has been deferred 24
Slide 25: A resilient business…
A resilient business… • Long-term passenger growth remains positive: – Real airfares and GDP growth – New capacity and fuel efficient aircraft – Emergence of low cost carriers – Increased airline competition – NZ remains leading tourism destination • Core Australasian passenger base • Carriers in st
Slide 26: … with exciting long-term prospects
… with exciting long-term prospects • Northern winter schedule up on last year • LCC model just starting at AKL • Trans-Tasman – the next big growth story • Strong growth from Asia – Pacific region • Seeing early signs from China and India • Lower NZ$ stimulating inbound tourism • Further retail and
Slide 27: Conclusion and outlook
Conclusion and outlook • Solid financial result in line with expectations • Competition driving demand, particularly domestic • Significant new facilities, capacity and pricing in place • Key regulatory risks continue to be major focus • Growth capex cycle now coming to an end • Smooth transition to
Slide 28: Thank you
fay Auckland Airport Thank you
Slide 29: Auckland Airport
ya Auckland Airport 29
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