Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Non-Deal Roadshow (March 2016)
49 slides from Auckland International Airport's roadshow presentation, March 2016
Slide 1: Delivering Results
2016 Investor Presentation Delivering Results Investor presentation 2016
Slide 2: Adrian Littlewood, Chief Executive; Philip Neutze, CFO
2016 Investor Presentation Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 3: Investment Story
2016 Investor Presentation Investment Story
Slide 4: International Gateway to New Zealand
2016 Investor Presentation International Gateway to New Zealand • New Zealand is an island nation and arrival by road and rail is impossible. Sea transport is unattractive for most overseas travellers • Auckland Airport is the only commercial airport in New Zealand’s largest city • Approximately 2 m
Slide 5: Aeronautical assets
2016 Investor Presentation Aeronautical assets • Single 3,535m runway and associated taxiways and aprons can accommodate all current aircraft types, including A380 and Boeing 787 Dreamliner • Main taxiway can function as a standby runway in emergencies • Existing and planned northern runway 2,150m (
Slide 6: New Zealand's busiest airport and our international gateway
2016 Investor Presentation New Zealand’s busiest airport and our international gateway • Auckland Airport is the largest and busiest airport in New Zealand in terms of passenger movements and revenue • International passengers represented 51% of total passenger movements in the year to 30 June 2015,
Slide 7: Proven passenger growth resilience
2016 Investor Presentation Proven passenger growth resilience • Highly resilient to global economic weakness and other external shocks Total Passengers at Auckland Airport (excl. Transits) 18,000,000 16,000,000 Sub Prime 14,000,000 Crisis and Christchurch Global Earthquake Recession 12,000,000 Avian
Slide 8: Significant Land Holdings
2016 Investor Presentation Significant Land Holdings Auckland Airport boundary Central Park, New York • Auckland Airport owns approximately 1,500 hectares of freehold land (~300 hectares available for IP development) • Land value NZ$3.2 billion as at 30 June 2015 • Vacant land enables staged and aff
Slide 9: Retail
2016 Investor Presentation Retail • The retail business operates through concessions; the two duty free being the largest Retail Spend Rates By Nationality • 110 stores across the domestic and international terminals with a growing and affluent footfall • Retail concessions represented $132m of inco
Slide 10: Car parking business
2016 Investor Presentation Car parking business • Dynamic, direct to consumer, online sales channel delivers high car park occupancy and yield optimisation • As at December 2015, the Airport had 9,981 parking spaces • In FY15 Auckland Airport moved some airline and other staff car parking from the d
Slide 11: Property Business
2016 Investor Presentation Property Business • Auckland Airport holds $613.5m of investment property (excl. undeveloped land) with a rent roll totaling $56.1m as at 30 June 2015. It is one of the most active developers in the industrial sector with ~300 hectares of developable land yet to come to ma
Slide 12: Hotels
2016 Investor Presentation Hotels • Auckland Airport has interests in two hotels with advanced plans for a third and space reserved for a fourth • The hotels have outperformed ambitious expectations and are integral to our consumer growth strategy • The Novotel Hotel was completed in May 2011 - a 26
Slide 13: Associates: Queenstown Airport
2016 Investor Presentation Associates Queenstown Airport – New Zealand (24.99% ownership) • Queenstown Airport is the gateway airport to New Zealand’s adventure capital, a major tourist destination and the fourth largest international airport in New Zealand. • Queenstown Airport has a runway length
Slide 14: Associates: North Queensland Airports
2016 Investor Presentation Associates North Queensland Airports – Cairns and Mckay, Australia (24.55% ownership) • Cairns Airport is the gateway airport to Tropical North Queensland, a major Australian leisure destination. Two world heritage listed attractions, the Great Barrier Reef and Wet Tropics
Slide 15: Current Position
2016 Investor Presentation Current Position Market Capitalisation Register composition as at 31 December 2015 $7,502m * International Retail Council Domestic Institutional Cost of Total Returns to Share Price Share Price Capital Cancelled Total Shareholder Opening Closing Dividend Return Shares Retu
Slide 16: Regulatory Environment
2016 Investor Presentation Regulatory Environment • Dual-till regime, with the aeronautical segment (1st till) subject to information disclosure regulation under the Commerce Act 1986 • Disclosure regime includes monitoring of service standards, asset availability, capital expenditure plans, efficie
Slide 17: Strategy for our future
2016 Investor Presentation Strategy for our future
Slide 18: Faster, Higher, Stronger
2016 Investor Presentation Faster, Higher, Stronger Adopt an ambitious and Strengthen and extend our Continue to improve our Build on our strong innovative approach to help retail, transport and performance by increasing foundations for long-term New Zealand to sustainably accommodation businesses t
Slide 19: Delivering on our ambitions
2016 Investor Presentation Delivering on our ambitions In 2013 we established several ambitious targets under out Faster, Higher, Stronger growth strategy (On track) 340,646 in the 12 months to 31 January 2016 9 million in the 12 months to (On track) 31 January 2016 (On track) 56.1 million as at 30
Slide 20: Positioned in high growth Asia-Pacific
2016 Investor Presentation Positioned in high growth Asia-Pacific • Unique approach to driving airline capacity. • Very rarely discounts landing charges, instead preferring cooperative marketing campaigns to drive sustainable traffic on new routes • Airport aims to become the southern hub for air tr
Slide 21: Grow Travel Markets
2016 Investor Presentation Grow Travel Markets • NZ has an opportunity to capture a larger share of the fast growing Asia-Pacific aviation market • Aligning industry on opportunities is a key part of our “Ambition 2025: High Opportunity Target” Refer: www.ambition2025.co.nz • We are working with Tou
Slide 22: Strong growth potential
2016 Investor Presentation Strong growth potential At 3m visitor arrivals to Aug 2015 we are at the top of the “Ambitious” target
Slide 23: Strategic Framework
2016 Investor Presentation Strategic Framework Grow travel markets by working with partners across the whole value chain 23
Slide 24: Network analysis exposes underserved demand
2016 Investor Presentation Network analysis exposes underserved demand 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 Singapore is Chile is underserved und
Slide 25: Unprecedented access to the world
2016 Investor Presentation Unprecedented access to the world • Strong period of expansion in air services with six new airlines having commenced or announced services to Auckland in the twelve months to December 2015 • New capacity has further strengthened national hub status and is a further step o
Slide 26: Strengthen our consumer business: Retail
2016 Investor Presentation Strengthen our consumer business: Retail • Proactive landlord optimizing store mix and overall customer experience. Planning and refinement over the last two years is beginning to deliver results • Continue to add new brands and stores that meet objective of ‘best of NZ an
Slide 27: Strengthen our consumer business: Retail
2016 Investor Presentation Strengthen our consumer business: Retail • Market leading innovation continuing to drive duty free footfall and sales e.g. ‘ACE’ (duty free collections robot), Johnny Walker House (one of six world-wide) • Outstanding specialty PSR growth (+27% in the 6 months to 31 Decemb
Slide 28: Transport growth continues
2016 Investor Presentation Transport growth continues • Car parking growth continues to be driven by broad programme of improved customer choice, extra capacity and promotions: Product – Valet now well established at both international and domestic. Valet exits up 70%. New remote “Wait Zone” produ
Slide 29: Operational innovation delivering for partners and passengers
2016 Investor Presentation Operational innovation delivering for partners and passengers • Driving high quality customer experience and operational efficiency • Based on pro-active collaboration, data sharing and real-time information • Collaborative decision making (CDM) with Auckland Airport’s par
Slide 30: Customer experience innovation
2016 Investor Presentation Customer experience innocation Lifting customer experience delivers two-way value • Ongoing investment in customer experience (roving agents, concierges, customer information systems, pre-airport travel info) • Building customer relationships through all channels (Tripit,
Slide 31: Be fast, efficient & effective: Financial
2016 Investor Presentation Be fast, efficient & effective: Financial • We are monitoring cost drivers throughout the business to sustain world class EBITDA margins (76% in the six months to 31 December 2015) • We are carefully managing our capital programme to make the most of our existing infrastru
Slide 32: Our future – 30-year vision launched
2016 Investor Presentation 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 st
Slide 33: In the flow of airport capacity development
2016 Investor Presentation In the flow of airport capacity development • Following intensive period of detailed planning, strong pipeline of infrastructure development projects adding important capacity – was critical to supporting summer peak demand and new airline services • Planned approach has a
Slide 34: Future investment
2016 Investor Presentation Future investment • Phase 3 – International terminal expansion of core processing, passenger dwell space and retail footprint space will significantly improve passenger amenity. Estimated project value $160-180m. Adds approximately 65% to primary retail footprint. Delivere
Slide 35: Investment property
2016 Investor Presentation Investment property • Transformation of non-aeronautical land continues with Auckland Airport becoming an increasingly desired location for core logistics tenants and new industries • Strong performance reflects the underlying demand in Auckland for close, connected and hi
Slide 36: The Business District
2016 Investor Presentation The Business District 36
Slide 37: Portfolio Snapshot
2016 Investor Presentation Portfolio Snapshot FY16 Revenue by Category FY16 Revenue by Precinct Other, 3% The Common, The Terminal, 4% 1% Commercial, Altitude, 9% 6% Retail, 8% The Landing, 16% Hotel, 4% Cargo South, Office, 7% Industrial, 52% 36% The Quad, 12% Ground Lease, 17% Cargo North, 25% WAL
Slide 38: Hotels
2016 Investor Presentation Hotels • Auckland Airport is helping the industry deliver needed additional hotel rooms and our hotel performance strengthens from year to year. ~2,000 room increase forecast for Auckland over the next 3 years • Existing hotels performing strongly Novotel has stabilised
Slide 39: Financial Results
2016 Investor Presentation Financial Results FY16 interim results Philip Neutze, chief financial office
Slide 40: Ongoing growth in financial performance
2016 Investor Presentation Ongoing growth in financial performance Auckland International Airport Group 6 months to (NZ$’m) 31 Dec 2015 30 Jun 2015 30 Jun 2014 30 June 2013 30 June 2012 Revenue 280.6 508.5 475.8 448.5 426.8 Expenses 67.1 128.5 120.6 117.6 107.5 Earnings before interest expense, taxa
Slide 41: Underlying profit reconciliation
2016 Investor Presentation Underlying profit reconciliation 6 months to 31 Dec 2015 6 months to 31 Dec 2014 Reported Underlying Reported Underlying Adjustments Adjustments earnings earnings earnings earnings $M $M $M $M $M $M EBITDAFI 213.5 - 213.5 189.0 - 189.0 Share of profit from associates 4.1 2
Slide 42: Strong operating leverage
2016 Investor Presentation Strong operating leverage Half year financial results 6 months to 6 months to Change 31 Dec 2015 31 Dec 2014 % $m $m Revenue 280.6 251.4 11.6 Expenses 67.1 62.4 7.5 Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates 213.5
Slide 43: Associates' strong underlying profit
2016 Investor Presentation Associates’ strong underlying profit 6 months to 6 months to Change 31 December 31 December % 2015 2014 Queenstown Airport (24.99% ownership) $M $M Total Revenue 15.7 13.0 20.8 EBITDAFI 11.7 9.2 27.2 Domestic Passengers 565,595 498,506 13.5 International Passengers 264,965
Slide 44: Passenger growth underpinning performance
2016 Investor Presentation Passenger growth underpinning performance Auckland Airport passenger movements 6 months to 6 months to Change 31 December 31 December % 2015 2014 International arrivals 2,209,520 2,054,639 7.5 International departures 2,070,923 1,937,548 6.9 International passengers exclud
Slide 45: Runway movements growing again
2016 Investor Presentation Runway movements growing again Aircraft movements and MCTOW 6 months to 6 months to Change 31 December 31 December % 2015 2014 Aircraft movements International aircraft movements 24,342 23,678 2.8 Domestic aircraft movements 53,351 53,203 0.3 Total aircraft movements 77,69
Slide 46: Strong revenue growth across business
2016 Investor Presentation Strong revenue growth across business 6 months to 6 months to 31 December 31 December Change 2015 2014 % $m $m Airfield income 50.2 46.9 7.0 Passenger services charge 75.5 69.5 8.6 Retail income 78.6 64.8 21.3 Car park income 26.0 23.4 11.1 Investment property rental incom
Slide 47: Controlling expense growth
2016 Investor Presentation Controlling expense growth 6 months to 6 months to 31 December 31 December Change 2015 2014 % $m $m Staff 22.4 22.1 1.4 Asset management, maintenance and airport operations 23.5 21.6 8.8 Rates and insurance 5.7 5.4 5.6 Marketing and promotions 6.3 6.0 5.0 Professional serv
Slide 48: Building on a foundation of success
2016 Investor Presentation Building on a foundation of success Look back – celebrating 50 years • Celebrated 50th anniversary on 29th January and can reflect on 50 years of continuous growth • Passenger volumes have grown from 750k in the first year to over 16m during the last 12 months • While our
Slide 49: 2016 Investor Presentation
2016 Investor Presentation
Auckland International Airport — Non-Deal Roadshow (March 2016) on 6ix