Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2006 Earnings Presentation
26 slides from Auckland International Airport's earnings presentation, June 2006
Slide 1: Annual Results 12 months ended 30 June 2006
Annual Results 12 months ended 30 June 2006 Don Huse, CEO Robert Sinclair, CFO Haere mai - Welcome to Our Airport
Slide 2: Summary of 2006 results
Summary of 2006 results • International pax (excl. transits / transfers) +1.3% • Domestic pax +2.8% • Revenue $305.814m +8.2% • EBITDA $240.161m +8.4% • Revenue and EBITDA growth similar to FY05 • Surplus after tax $103.155m -2.4% • Adjusted for interest costs / asset sales +3.2% • Final dividend 4.
Slide 3: Key investment fundamentals
Key investment fundamentals • Positive long-term pax growth driven by lower NZ$ • Aircraft upgrades and new schedules will drive demand • Enhancing facilities to accommodate 3-5 years growth • Commercial approach to consultation - negotiated outcome • Retail spend and yield turnaround • Expanding re
Slide 4: Financial overview
Financial overview FY06 FY05 % $m $m change Total revenue 305.8 282.7 +8.2 Operating expenses 1 65.6 61.2 +7.4 EBITDA 240.2 221.5 +8.4 Depreciation 38.5 31.9 +20.7 Interest expense 54.9 36.2 +51.7 Surplus before taxation 146.7 153.4 -4.4 Taxation 43.5 47.8 -9.0 Surplus after taxation 2 103.2 105.6 -
Slide 5: Ordinary dividends
Ordinary dividends FY06 FY05 Interim – cents per share (cps) 3.75 3.75 Final cps 4.45 4.45 Total cps 8.20 8.20 TOTAL AMOUNT $100.098m $100.242m Earnings per share (cps) 8.44 8.65 Payout ratio 97% 95% Shares on issue at 30 June 1,220,509,639 1,222,685,236 • Fully imputed • Books close 13 October, pai
Slide 6: AIAL passenger movements – FY06
AIAL passenger movements – FY06 % FY06 FY05 change International pax 6,213,647 6,133,899 +1.3 Transits and transfers 286,120 298,262 -4.1 Total international pax 6,499,767 6,432,161 +1.1 Domestic pax 4,958,786 4,823,916 +2.8 TOTAL PAX MOVEMENTS 11,458,553 11,256,077 +1.8 6
Slide 7: AIAL passenger movements – years
AIAL passenger movements – 10 years 14,000,000 11,458,553 12,000,000 +1.8% Total passengers 10,000,000 International 8,000,000 6,000,000 4,000,000 Domestic 2,000,000 0 97 98 99 00 01 02 03 04 05 06 Year 7
Slide 8: Arriving passengers at Auckland by country
Arriving passengers at Auckland by country Country of last permanent residence Movement % change FY06 % of total FY05 % of total New Zealand 1,364,348 44.5 1,333,836 43.9 30,512 +2.3 Australia 502,828 16.4 493,576 16.3 9,252 +1.9 UK (incl. Ireland) 250,725 8.2 257,152 8.5 -6,427 -2.5 USA 180,174 5.9
Slide 9: Aircraft statistics – FY06
Aircraft statistics – FY06 % FY06 FY05 change Aircraft International movements 38,757 38,465 +0.8 Domestic movements 122,136 119,987 +1.8 TOTAL AIRCRAFT MOVEMENTS 160,893 158,452 +1.5 Cargo Cargo handled (tonnes) 231,938 229,348 +1.1 MCTOW (maximum certificated take-off weight) International (tonnes
Slide 10: Revenue analysis
Revenue analysis FY06 FY05 % % $m $m change Aeronautical Airfield 67.4 22.0 66.3 +1.7 Development charge 60.4 19.7 49.5 +22.0 Terminal services charge 17.3 5.7 13.9 +24.5 Total aeronautical revenue 145.1 47.4 129.7 +11.9 Non-aeronautical Retail 86.7 28.4 84.7 +2.4 Rental 31.5 10.3 29.2 +7.9 Car park
Slide 11: Expense analysis
Expense analysis FY06 FY05 % % $m $m change Staff 25.9 16.3 24.0 +7.9 Repairs and maintenance 20.5 13.0 18.5 +10.8 Rates and insurance 5.8 3.6 5.5 +5.5 Other 13.4 8.4 13.2 +1.5 Total operating expenses 1 65.6 41.3 61.2 +7.2 Depreciation 38.5 24.2 31.9 +20.7 Interest 54.9 34.5 36.2 +51.7 TOTAL EXPENS
Slide 12: Statement of financial position
Statement of financial position June 06 June 05 $m $m Non-current assets 2,731 1,262 Current assets 27 18 TOTAL ASSETS 2,758 1,280 Non-current liabilities 602 403 Current liabilities 301 419 Equity 1,855 458 TOTAL EQUITY AND LIABILITIES 2,758 1,280 Equity ratio 67.3% 35.8% Debt to enterprise value 2
Slide 13: Key financial ratios
Key financial ratios FY06 FY05 Operating margin 78.5% 78.4% Effective tax rate 29.7% 31.1% Debt / debt + equity 31.7% 58.4% Capex / depreciation (times) 2.8 3.6 Interest cover (times) 3.5 4.9 Operating staff numbers 278 283 13
Slide 14: Operating efficiencies
Operating efficiencies FY06 FY05 Passengers per operating staff 41,218 39,774 Operating revenue per operating staff 1,100,051 999,028 Operating revenue per pax $26.69 $25.12 Retail revenue per international pax $13.34 $13.17 Car park revenue per pax $2.22 $2.14 Operating staff costs / operating reve
Slide 15: Aeronautical update
Aeronautical update • Aeronautical revenue + 11.9% • ADC increased $5 at 1 October 2005 • TSC uplift from new space • New aeronautical division established • International expanded arrivals • Air NZ domestic renovation underway • Pier B (2 gates) approved (subject to agreeing final pricing) • Cost $
Slide 16: Overview of Pier B
Overview of Pier B Pier B Cost: $50m Completion: Jun 2008 16
Slide 17: Aeronautical consultation update
Aeronautical consultation update • Commenced August 2004 • Significant exchange of information • Comprehensive proposal delivered • Key considerations: • timeframe between resets • level of aeronautical investment • treatment of revaluations • AIAL seeking constructive engagement and negotiated outc
Slide 18: Retail update
Retail update • Retail income +2.4% • 2H06 rebound following Pier A • Income per international pax $13.34 (+1.3%) • 2H06 $13.74 (+6.1% vs 1H06) • Pax spend rates improving • Domestic terminal retail precinct fully let, opens December 2006 • International terminal expanded arrivals duty free • Progre
Slide 19: Retail income per international passenger
Retail income per international passenger $16.00 $ 14.49 $ 13.60 $ 13.79 $ 13.58 $ 13.74 $14.00 $ 13.10 $ 12.95 $ 12.74 $ 11.59 $ 11.71 $12.00 $ 10.79 $ 10.89 $ 10.68 $ 10.31 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 30 Jun 00 30 Jun 01 30 Jun 02 30 Jun 03 30 Jun 04 30 Jun 05 30 Jun 06 31 Dec 99 31 Dec 0
Slide 20: Car parking update
Car parking update • Car park income +6.0% • Solid growth from domestic • Total of 8,449 spaces +10.6% • Includes new multi-level facility • Dedicated business parking • Initial take-up of new facility positive • Public rates last revised 1 July 2005 20
Slide 21: Property update
Property update • Rental income +7.9% • $6.1m invested during the year • New developments of $23.1m: • Air NZ cargo expansion ($3.1m) • NZ Van Lines ($7.8m) • Fliway Logistics ($5.0m) • Expeditors ($6.1m) • Lollipops childcare ($1.1m) • Chris Gudgeon appointed GM property • Development pipeline acce
Slide 22: Capex FY06
Capex FY06 $m Key projects Completion of rehabilitation and A380 Airfield 30.1 widening Separation of the pier and hold stow International terminal 42.8 baggage screening facility Forecourts, commencement of the Air NZ Domestic terminal 4.2 domestic renovation, new retail precinct and miscellaneous
Slide 23: Capex estimates FY07 to FY08
Capex estimates FY07 to FY08 FY07 FY08 $m $m Airfield 9 20 International terminal: Expanded arrivals 34 38 Pier B 12 32 Expanded departures / retail 6 28 Domestic terminal renovation 21 5 Car parking 1 0 Infrastructure and other 22 12 Property development 22 22 TOTAL CAPEX 127 157 • FY09 capex (excl
Slide 24: Update on investment programme
Update on investment programme International check-in Cost: $12m Completed: Dec 2004 Hold stow baggage Cost: $29m Int’l expanded arrivals Completed: Dec 2005 Cost: $100m Completion: Apr 2008 Domestic retail precinct Cost: $11m Pier B Completion: Dec 2006 Cost: $50m Completion: Jun 2008 Air NZ termin
Slide 25: Outlook
Outlook • Solid result in more challenging environment • Positive long-term pax outlook remains • Investment programme well underway, ends FY08 • Commercial and pragmatic approach to consultation • Focussed on non-aeronautical growth opportunities • Retail yield improving, new developments progressi
Slide 26: Auckland International Airport Limited
Auckland International Airport Limited 26
Auckland International Airport — FY2006 Earnings Presentation on 6ix