Auckland International Airport Limited · NZX:AIA
Auckland International Airport — H1 2015 Earnings Presentation
28 slides from Auckland International Airport's earnings presentation, Feb 20, 2015
Slide 1: From strength to strength: Interim Report 2015
From strength to strength Interim Report 2015
Slide 2: Interim results presentation notice
Auckland International Airport Limited 2015 Interim Results This interim results presentation dated 20 February 2015 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, th
Slide 3: Summary
Auckland International Airport Limited 2015 Interim Results Summary Adrian Littlewood 3
Slide 4: Results at a glance
Auckland International Airport Limited 2015 Interim Results Total profit Results at a glance Up 8.1% $ 92.8m Passenger movements Underlying profit Up 3.8% International 4.0m Up 4.0% | International transits 0.3m Domestic 3.6m Up 3.1% 7.9m Up 1.3% 87.8m Up 10.9% $ Revenue Underlying earnings per shar
Slide 5: Business is going from strength to strength
Auckland International Airport Limited 2015 Interim Results Business is going from strength to strength Solid financial results consistent with strong performance across the business in the six months to 31 December 2014: • Strong international passenger volumes this summer, especially from Asia • D
Slide 6: Business is going from strength to strength
Auckland International Airport Limited 2015 Interim Results Business is going from strength to strength • Progressed vision for the airport-of–the-future with the expansion of the 2,500m2 international baggage hall. Advanced planning for the first major phase of the integrated terminal – expanding e
Slide 7: Financial section
Auckland International Airport Limited 2015 Interim Results Financial section Simon Robertson 7
Slide 8: Profitability growing even after the capital return
Auckland International Airport Limited 2015 Interim Results Profitability growing even after the capital return 6 months to 6 months to 31 Dec 2014 31 Dec 2013 Change $m $m % Revenue 251.421 238.506 5.4 Expenses 62.328 60.607 2.8 Earnings before interest, taxation, depreciation, fair value 189.093 1
Slide 9: Underlying profit reconciliation
Auckland International Airport Limited 2015 Interim Results Underlying profit reconciliation Six months to December 2014 Six months to December 2013 Reported Underlying Reported Underlying profit Adjustments earnings profit Adjustments earnings $000 $000 $000 $000 $000 $000 Earnings before interest,
Slide 10: Summer strength lifts passenger growth
Auckland International Airport Limited 2015 Interim Results Summer strength lifts passenger growth 6 months to 6 months to Change 31 Dec 2014 31 Dec 2013 % International arrivals 2,054,639 1,967,636 4.4 International departures 1,937,548 1,870,949 3.6 International passengers excluding transits 3,99
Slide 11: A half of two halves
Auckland International Airport Limited 2015 Interim Results A half of two halves • Passenger growth in the six months was significantly stronger in the second quarter • Quarter 1: Passengers up 26k (+1.4%) • Quarter 2: Passengers up 128k (+6.4%) • North Asia (China, Hong Kong, Japan, Korea and Taiwa
Slide 12: Lifting runway productivity
Auckland International Airport Limited 2015 Interim Results Lifting runway productivity 6 months to 6 months to Change 31 Dec 2014 31 Dec 2013 % Aircraft Movements International movements 23,678 23,080 2.6 Domestic aircraft movements 53,203 55,879 (4.8) Total aircraft movements 76,881 78,959 (2.6) M
Slide 13: Revenue performance solid across the business
Auckland International Airport Limited 2015 Interim Results Revenue performance solid across the business 6 months to 6 months to 31 Dec 2014 31 Dec 2013 Change $m $m % Airfield income 46.854 44.162 6.1 Passenger services charge 69.523 65.826 5.6 Retail income 64.785 63.779 1.6 Car park income 23.42
Slide 14: Expenses linked to business growth
Auckland International Airport Limited 2015 Interim Results Expenses linked to business growth 6 months to 6 months to Change 31 Dec 2014 31 Dec 2013 % Staff 22.060 21.299 3.6 Asset management, maintenance and airport operations 21.586 20.322 6.2 Rates and insurance 5.401 5.033 7.3 Marketing and pro
Slide 15: Associates contribute double digit growth
Auckland International Airport Limited 2015 Interim Results Associates contribute double digit growth Reported profit Underlying earnings 6 months to 6 months to 6 months to 6 months to 31 Dec 2014 31 Dec 2013 31 Dec 2014 31 Dec 2013 $m $m Change % $m $m Change % Queenstown Airport 1.173 0.955 22.8
Slide 16: Underlying EPS up 12.5%
Auckland International Airport Limited 2015 Interim Results Underlying EPS up 12.5% • The capital return to shareholders in April 2014 reduced the number of shares on issue • Underlying earnings grew 1.3% while underlying earnings per share increased by 12.5% • Dividend declared of 7.3 cents per sha
Slide 17: From strength to strength
Auckland International Airport Limited 2015 Interim Results From strength to strength Adrian Littlewood 17
Slide 18: Building air connectivity key to driving tourism growth
Auckland International Airport Limited 2015 Interim Results Building air connectivity key to driving tourism growth • Industry’s Tourism 2025 growth framework seeks to grow sustainable air connectivity to lift tourism revenue by 6% CAGR, to $41 billion by 2025 • Have just surpassed our own ‘ambitiou
Slide 19: Strong duty free tender outcome
Auckland International Airport Limited 2015 Interim Results Strong duty free tender outcome • LS travel Retail Pacific and Aer Rianta International selected as duty free partners for seven years from 1 July 2015 • Selection criteria aligned with our strategy. Key considerations included: Providing
Slide 20: Expanding 'click and collect'
Auckland International Airport Limited 2015 Interim Results Expanding ‘click and collect’ • Our trial of a click and collect model for online duty free purchases is showing the potential for lifting sales and competing with other channels • Our online product range now covers thousands of SKU’s and
Slide 21: Car parking business continues its growth
Auckland International Airport Limited 2015 Interim Results Car parking business continues its growth • Online channel now represents about half of all car park transactions • Average transaction value for online is increasing, narrowing the gap with drive up • Increased at grade car park capacity p
Slide 22: Deepening our relevance and value to customers
Auckland International Airport Limited 2015 Interim Results Deepening our relevance and value to customers • Constantly looking for ways to make journeys better for our customers. Have invested in improving quality of customer interactions, particularly in mobile, social and online transactions • Cu
Slide 23: New deals driving property growth
Auckland International Airport Limited 2015 Interim Results New deals driving property growth • Significant increase in number of industrial property development wins in the last six months • Shaping up to have our largest year for development with $100m+ market value of industrial projects in eithe
Slide 24: New deals driving property growth
Auckland International Airport Limited 2015 Interim Results New deals driving property growth A range of activities driving growth in the rent roll. Examples include: Existing tenant expanding business • Ceva Logistics doubling existing warehouse from 7,700m2 to 14,600 m2 only two years after reloca
Slide 25: Hotel room demand remains high
Auckland International Airport Limited 2015 Interim Results Hotel room demand remains high • Major addition of 73 rooms (~50% growth) at Ibis budget hotel completed in December 2014 • Minimal impact on occupancy during build coinciding with the typically weaker winter season • January 2015 occupancy
Slide 26: Progressing the 30 year vision of the airport of the future
Auckland International Airport Limited 2015 Interim Results Progressing the 30 year vision of the airport of the future • Concept design work on expanding international departure processing, passenger seating and expanded retail is nearing completion. Consultation with key stakeholders and further r
Slide 27: Lifting guidance for the financial year
Auckland International Airport Limited 2015 Interim Results Lifting guidance for the financial year • Strong first half result and stronger than expected summer season passenger volumes has raised our expectation for FY2015 • We now expect underlying net profit after tax (excluding any fair value ch
Slide 28: Questions
Auckland International Airport Limited 2015 Interim Results Questions 28
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