Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Investor Presentation (August 2017)
23 slides from Auckland International Airport's investor presentation, August 2017
Slide 1: Price setting disclosure
Price setting disclosure July 2017 – June 2027 Adrian Littlewood Chief Executive Philip Neutze Chief Financial Officer
Slide 2: Background
Background 2017 Price setting disclosure • Under the Airport Services Information Disclosure Determination 2010, Auckland Airport is required to provide information that relates to the setting of prices for PSE3 • Consistent with our approach in 2012, this presentation summarises key financial and o
Slide 3: Our strategy
Our strategy 2017 Price setting disclosure Description Our focus areas Adopt an ambitious and innovative • Sustain existing airline capacity approach to help New Zealand to • Diversify our geographic source market portfolio sustainably unlock the growth opportunities in travel, trade and • Realise a
Slide 4: Executive summary
Executive summary 2017 Price setting disclosure Total Regulated Activities capex and demand forecasts • Total Regulated Activities capital expenditure in 2017 dollars of: – $1.9b in PSE3 comprising $1.8b Aeronautical Priced Activities and $0.1b Other Regulated Activities – $1.8b in PSE4 if second ru
Slide 5: Price setting disclosure approach
Price setting disclosure approach 2017 Price setting disclosure Disclosure process and approach • As in PSE2, our first presentation (8 June) focused on Aeronautical Pricing Activities. This Price Setting Disclosure provides additional details for Total Regulated Activities Forward looking statement
Slide 6: Overview of PSE3 and PSE4 capex (real$)
Overview of PSE3 and PSE4 capex (real$) 2017 Price setting disclosure Total Regulated Activities capex by year (2017 $)* PSE3 PSE4 500 450 400 2017 NZD (millions) 350 300 250 200 150 100 50 - FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 Total capital expenditure excl. second runway Second runwa
Slide 7: Significant projects
Significant projects 2017 Price setting disclosure C F G D D H E I G A B B Key = PSE3 = PSE4 7 Reflects Auckland Airport’s 2014 Master Plan and indicative location of significant upcoming projects for illustration purposes only
Slide 8: PSE3 key projects (real$)
PSE3 key projects (real$)* 2017 Price setting disclosure A) Domestic jet terminal ($477m) • New facility for domestic jet services co-joined to the existing international terminal. First phase commissioned at the end of PSE3, but only reflected in aeronautical prices from PSE4 B) Codes B/C/E aircraf
Slide 9: PSE4 key projects (real$)
PSE4 key projects (real$)* 2017 Price setting disclosure F) Stage 1 of the second runway ($808m**) • Earthworks and construction of first 2,265m stage of the second runway, operational by FY28 G) Code F aircraft taxiway, stands and aprons ($300m**) • Construction of fully serviced MARS Code F aircra
Slide 10: PSE3 Total Regulated Activities revenue (nominal$)
PSE3 Total Regulated Activities revenue (nominal$) 2017 Price setting disclosure NZ$ 000’s FY18 FY19 FY20 FY21 FY22 Forecast Total Regulated Activities disclosure revenue: Forecast revenue ($/pax x number of pax) incl. check-in, landing & 302,912 316,910 329,482 370,898 389,697 passenger charges Lan
Slide 11: Total Regulated Activities capex by year (real$)
Total Regulated Activities capex by year (real$)* 2017 Price setting disclosure 2017 $millions FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 PSE3 PSE4 Airfield Code B/C/E taxiway, stands and aprons 5 58 73 79 - 27 - - - - 215 27 (Phase 5) Code F taxiway, stands and aprons 10 5 2 50 95 175 126 -
Slide 12: Total Regulated Activities capex by year (real$)
Total Regulated Activities capex by year (real$)* 2017 Price setting disclosure 2017 $millions FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 FY27 PSE3 PSE4 Other cont’d Runway slab replacement & airbridge works 10 10 10 10 10 9 9 9 9 9 48 43 Other 23 25 13 14 17 15 15 14 14 12 91 70 Total Regulated A
Slide 13: PSE3 Total Regulated capex bridge (nominal$)
PSE3 Total Regulated capex bridge (nominal$) 2017 Price setting disclosure $1.9b Total Regulated Activities capex in PSE3 (nominal $) $1.9b real (2017 $) capex associated with 2.5 pricing and other regulated activities 0.12 0.02 0.01 2.35 0.13 2.20 2.0 0.28 1.80 1.5 Billions $ 1.0 0.5 0.0 PSE3 prici
Slide 14: Total Regulated capex commissioned (real$)
Total Regulated capex commissioned (real$) 2017 Price setting disclosure PSE3 Total Regulated Activities capex (2017 $) PSE4 Total Regulated Activities capex (2017 $) 2.0 2.0 0.20 1.92 0.81 1.82 0.54 1.5 1.5 * Billions FY17 $ Billions FY17 $ 1.17 * 1.0 1.0 0.05 0.96 0.5 0.5 0.0 0.0 Total Regulated A
Slide 15: Forecast Total Regulated aero asset base (nominal$)
Forecast Total Regulated aero asset base (nominal$) 2017 Price setting disclosure Forecast total regulated PSE3 and PSE4 aero asset base (nominal $) End of End of PSE2 PSE3 4.5 1.44 (0.79) 4.0 3.5 3.60 3.0 0.63 1.48 (0.46) 2.5 Billions $ 2.32 2.0 1.5 0.19 1.0 1.11 0.5 0.0 FY16 Regulated Assets Asset
Slide 16: Long term funding and capital management
Long term funding and capital management 2017 Price setting disclosure Credit rating and dividend policy • Auckland Airport is committed to its long term A- corporate credit rating from Standard & Poor’s • There is no intention to change dividend policy of paying ~100% of underlying NPAT Capital man
Slide 17: Investor calendar
Investor calendar 2017 Price setting disclosure 23 August 2017 • 2017 annual results announcement 26 October 2017 • Annual meeting Mid November 2017 • Investor day Late November 2017 • 2017 annual disclosures Late 2017 / Early 2018 • Commerce Commission review of pricing decision 17
Slide 18: Questions
Questions
Slide 19: Important Notice and Glossary
Important Notice and Glossary 2017 Aeronautical pricing Disclaimer This document has been prepared for the sole purpose of complying with the Airport Services Information Disclosure Determination 2010 (the “Determination”). As required by the Determination, the document contains forward looking stat
Slide 20: Appendix
Appendix
Slide 21: PSE4 Pricing volume assumptions
PSE4 Pricing volume assumptions* 2017 Price setting disclosure Financial year ending 30 June Metric FY23 FY24 FY25 FY26 FY27 Aircraft Volumes Aircraft less than 6 tonnes Landings 4,255 4,288 4,319 4,349 4,402 Aircraft greater than 6 tonnes but less Tonnes (000’s) 688 706 725 744 764 than 40 tonnes A
Slide 22: PSE3 Priced to Total Regulated Activities capex
PSE3 Priced to Total Regulated Activities capex 2017 Price setting disclosure PSE3 Priced PSE3 Other PSE3 Total 2017 $millions (8 June investor Reclassifications* Regulated Regulated Activities presentation) Activities Airfield Code B/C/E taxiway, stands and aprons (Phase 5) 215.2 - 215.2 Code F tax
Slide 23: Assets commissioned to the RAB
Assets commissioned to the RAB 2017 Price setting disclosure PSE3 PSE3 PSE3 PSE4 PSE4 PSE4 PSE3 + PSE4 $millions Aeronautical Other Aeronautical Other Total Total Total Pricing Regulated Pricing Regulated Capex (2017 $) 1,795 120 1,915 1,778 43 1,821 3,736 Construction Inflation 281 17 298 697 17 71
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