Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2012 Earnings Presentation
29 slides from Auckland International Airport's earnings presentation, Aug 30, 2012
Slide 1: Auckland Airport Annual Results 2012
~ Auckland Wider Ambition Airport Annual Results 2012 | Auckland International Airport
Slide 2: Simon Robertson, Acting Chief Executive
Simon Robertson Acting Chief Executive This annual results presentation dated 30 August 2012 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
Slide 3: Auckland Airport: Wider Ambition
Auckland Airport: Wider Ambition We have a strong leadership team – ambitious for our growth and the growth of businesses that touch New Zealand’s travel, trade & tourism industries Simon Robertson – Acting Chief Executive Peter Alexander – GM Property Adrian Littlewood – GM Retail & Commercial Judy
Slide 4: High Performance
High Performance Outstanding operational and financial performance with revenue up 7.3% and underlying profit up 15.0%. Performance and healthy cash flow delivers reward for shareholders with full year dividend up 20.7% to 10.50 cps. Confirmation that strategic direction is delivering results throug
Slide 5: High Performance: Financial Results Summary
High Performance: Financial Results Summary 30 June 2012 30 June 2011 % ($m) ($m) Change Income 426.813 397.723 7.3 EBITDAFI* 319.289 298.229 7.1 Reported Profit 142.284 100.761 41.2 Underlying Profit 139.025 120.870 15.0 * EBITDAFI means Earnings before interest, taxation, depreciation, fair value
Slide 6: High Performance: Operations
High Performance: Operations 85.3% arriving passengers processed under 25 minutes 96.4% of departing passengers processed under 12 minutes Successful RWC performance Best Airport in Australia Pacific 4th year in a row in Skytrax Constructive pricing engagement and a fair outcome Range of product and
Slide 7: Outstanding Financial Performance
Outstanding Financial Performance 30 June 2012 30 June 2011 % ($m) ($m) Change Revenue 426.813 397.723 7.3 Expenses 107.524 99.494 8.1 EBITDAFI 319.289 298.229 7.1 Share of profit of associates 9.240 4.755 94.3 Gain on sale of associates - 1.240 (100.0) PPE revaluation movements - (63.465) 100.0 Inv
Slide 8: Underlying Profits: A Reconciliation
Underlying Profits: A Reconciliation 30 June 2012 ($m) 30 June 2011 ($m) Reported Adjustments Underlying Reported Adjustments Underlying Earnings ($m) ($m) Earnings ($m) Earnings ($m) ($m) Earnings ($m) EBITDAFI per Income Statement 319.289 - 319.289 298.229 - 298.229 Share of profit of associates 9
Slide 9: Passenger volume growth across all airports
Passenger volume growth across all airports 30 June 2012 30 June 2011 % Change Auckland Airport International passengers (including transits) 7,769,207 7,392,045 5.1 Domestic passengers 6,236,915 6,040,265 3.3 Total passengers 14,006,122 13,432,310 4.3 Queenstown Airport International passengers 195
Slide 10: Aircraft numbers and MCTOW growth
Aircraft numbers and MCTOW growth 30 June 2012 30 June 2011 % Change Auckland Airport Aircraft Movements International aircraft movements 45,094 43,782 3.0 Domestic aircraft movements 110,421 110,508 (0.1) Total aircraft movements 155,515 154,290 0.8 MCTOW (tonnes) International 4,167,792 4,007,728
Slide 11: Revenue growth across the business
Revenue growth across the business 30 June 2012 30 June 2011 % ($m) ($m) Change Airfield income 77.299 72.529 6.6 Passenger Services Charge 83.081 78.760 5.5 Terminal services charge 28.604 28.342 0.9 Retail income 120.863 111.150 8.7 Rental income 54.974 49.927 10.1 Car park income 36.620 33.437 9.
Slide 12: Expenses driven by rates, insurance and RWC
Expenses driven by rates, insurance and RWC 30 June 2012 30 June 2011 % ($m) ($m) Change Staff 34.326 32.607 5.3 Asset management, maintenance 36.717 32.854 11.8 and airport operations Rates and insurance 9.082 7.829 16.0 Marketing and Promotions 12.207 11.751 3.9 Other 15.192 14.453 5.1 Total opera
Slide 13: NQA business performing well
NQA business performing well 30 June 2012 30 June 2011 % Change Domestic Passenger Volume - Cairns 4,405,202 4,224,574 4.3 and Mackay Airports International Passenger Volume 775,999 749,488 3.5 (including transits) - Cairns Airport Total Passengers 5,181,201 4,974,062 4.2 Operating EBITDAFI AU$70.08
Slide 14: Queenstown exceptional growth continues
Queenstown exceptional growth continues 30 June 2012 30 June 2011 % Change Domestic Passenger Volume 851,795 763,159 11.6 International Passenger Volume 195,249 161,089 21.2 Total Passengers 1,047,044 924,248 13.3 Operating EBITDAFI ($’000) 11,529 9,881 16.7 Dividends received and receivable ($’000)
Slide 15: Strong balance sheet in uncertain times
Strong balance sheet in uncertain times Debt ratios 30 June 2012 30 June 2011 Average interest rate for the year 6.5% 6.6% Underlying EBITDAFI Interest cover ratio 4.36 4.16 Average debt maturity 4.46 4.17 Debt/Debt + equity 30.9% 30.5% Capital expenditure ($m) ($m) Aeronautical 25.5 14.6 Property 4
Slide 16: Investors' rewards from strong performance are clear
Investors’ rewards from strong performance are clear Total Total share Share Price Share Price Dividend return holder Opening (NZ$) Closing (NZ$) (cps) (cps) return % 1 July 2009 to 30 June 2010 1.61 1.87 8.20 34.20 21.2% 1 July 2010 to 30 June 2011 1.87 2.23 8.70 44.70 23.9% 1 July 2011 to 30 June
Slide 17: Ambition 2020
Ambition 2020: - aiming high to continuously lift performance - take advantage of reshaping travel markets Flight-path for growth launched in 2009. Strategy evolved as market conditions developed. Time is right to move from launching a growth strategy to setting a path for long-term growth momentum.
Slide 18: Market trends and industry leadership
Market trends and industry leadership Current conditions are muted with international passenger volumes down 0.2% from 1 July to 26 August 2012. China set to become 2nd largest tourism market for New Zealand and volumes up 31.9% in FY12. Asia, Americas and Australia are our key focus as Europe and U
Slide 19: Ambition 2020: delivering a smart airport future
Ambition 2020: delivering a smart airport future DTB capacity enhancement project to commence shortly to allow 2 carriers to remain within the facility to mid-decade, then one carrier will move to phase one of a new terminal leaving a single carrier in DTB until late this decade at which time they w
Slide 20: Ambition 2020: delivering a smart airport future
Ambition 2020: delivering a smart airport future Spatial Masterplanning inception process underway led by Arup (global airport master- planning experience). Inception process will take 5 weeks. Full spatial master-plan process concluded within FY13. New terminal facility planning process being worke
Slide 21: Ambition 2020: growing the Auckland Airport Business District
Ambition 2020: growing the Auckland Airport Business District Rental growth strong in FY2012 after development in FY2010 and FY2011 brings in new rental income. Current market for new property development is relatively weak. Recent completed developments include Toll, CEVA and the Quad 5 office buil
Slide 22: Ambition 2020: building on retail success
Ambition 2020: building on retail success International Passenger Spend Rate growth of 5.2% in FY12 compared to FY11, although rate of growth slowing. Retail income per international passenger increased from $15.64 to $16.15. Car park revenue from online sales increased to 20% in FY12, and 24% for J
Slide 23: Ambition 2020: accepting a leadership role
Ambition 2020: accepting a leadership role The benefits of direct services to fast growing markets are significant. The industry requires product, channels, promotions and processes to deliver higher value outcomes that maximise the opportunity for New Zealand. Competition for these high-growth mark
Slide 24: Progress against Big Aspirational Targets
Progress against Big Aspirational Targets In 2011 we established Underlying profit for the year ended 30 some big business targets June 2012 was $139.025 million, up 15%. for the future. This is outstanding progress in FY12 after significant growth in FY11 (up 15%) The targets were not and we remain
Slide 25: Progress against Big Aspirational Targets
Progress against Big Aspirational Targets Chinese arrivals grew 31.9% in the financial year to June 2012, and 66.9% from base year of FY10. In June 2012, management launched Ambition 2020 to target Australia, Asia and America as key growth markets. International passenger numbers increased to 7.194
Slide 26: Progress against Big Aspirational Targets
Progress against Big Aspirational Targets Property rent roll for properties outside the terminal was $41 million for the year to 30 June 2012, 14.1% increase on prior year. An outstanding result, but will take another two outperforming years in FY13 and FY14 to achieve this goal. Retail segment reve
Slide 27: Future capital expenditure
Future capital expenditure Forecast FY2013 Capital expenditure ($m) Aeronautical 66 Property 30 Retail and car parking 5 Infrastructure and other 3 Total 104 Capital expenditure is forecast to be between $100m and $110m in FY13, excluding yet to be committed property expenditure and yet to be commit
Slide 28: Opportunities exist for long term growth
Opportunities exist for long term growth Despite the challenge of rapidly changing global markets for travel, trade and tourism, we still see opportunities for long term growth: Designing and developing a Smart Airport future with increased domestic capacity, and improved infrastructure for all st
Slide 29: Auckland Airport Annual Results 2012
~ Auckland Wider Ambition Airport Annual Results 2012 | Auckland International Airport
Auckland International Airport — FY2012 Earnings Presentation on 6ix