Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Non-Deal Roadshow (April 2018)
49 slides from Auckland International Airport's roadshow presentation, April 2018
Slide 1: USA and Canada Investor Roadshow
USA and Canada Investor Roadshow April 2018
Slide 2: Agenda
Agenda 2018 Investor Roadshow Page Highlights 1. Highlights 3 Company overview 2. Company overview 7 Strategy for our future 3. Strategy for our future 18 Information Financial 4. Financial information 38 Outlook 5. Outlook 43 2
Slide 3: Auckland Airport at a glance
Auckland Airport at a glance 2018 Investor Roadshow Highlights Company overview 22km from the Strategy for CBD or ~25 our future Associates mins via tunnel • Queenstown (24.99%) • Novotel hotel (40%) 19.8m annual Information Financial passengers $1.4b investment property 1,500 hectares of Outlook fr
Slide 4: Three fast growing airport businesses
Three fast growing airport businesses 2018 Investor Roadshow Auckland 1 Highlights • Auckland is the gateway to New Zealand with more than three quarters of all international visitors Australia • 46 international destinations, 19 Company overview domestic New • International passengers +7% and Zeala
Slide 5: Strong foundations for continued growth
Strong foundations for continued growth 2018 Investor Roadshow Highlights Positive exposure Strong network Attractive customer Strong development to growth markets base potential #1 #1 Company 2/3 94% overview rds Strategy for our future of the global middle class will be share of long haul arrivals
Slide 6: Why invest in Auckland Airport?
Why invest in Auckland Airport? 2018 Investor Roadshow One of the largest listed corporates in New Zealand Highlights with a market capitalisation of US$5.6 billion and debt of US$1.6 billion1 Company overview Attractive macro environment continues to support future growth Strategy for our futur
Slide 7: Company overview
Company overview
Slide 8: Stable New Zealand economy
Stable New Zealand economy 2018 Investor Roadshow • The New Zealand economy is stable and GDP % change from same quarter previous year Highlights 5% growing. Supported by population growth, low interest rates, increased government 4% spending, a positive international outlook 3% Company overview and
Slide 9: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2018 Investor Roadshow New Zealand’s international airports by passenger numbers 1 Highlights • The largest airport in New Zealand • 75% of international passengers to New Company overview Auckland 19.1 million* Zealand arrive or depart from Auckland Ai
Slide 10: Connecting New Zealand to the world
Connecting New Zealand to the world 2018 Investor Roadshow Routes added since FY15 have connected Auckland with new cities of nearly 140 million Highlights people while passengers increased 25% and airlines serving Auckland increased by 67% Company overview 30 international airlines 46 international
Slide 11: Proven passenger growth through economic cycles and global shocks
Proven passenger growth through economic cycles and global shocks 2018 Investor Roadshow Total Passengers at Auckland Airport (excl. Transits) Highlights 20.0 Company overview Half 1 Half 2 18.0 16.0 Strategy for our future Sub Prime Crisis and Christchurch 14.0 Annual passengers (m) Global Earthqua
Slide 12: Diverse business activities (1 of 2)
Diverse business activities (1 of 2) 2018 Investor Roadshow Highlights Aeronautical Retail Car park Company overview Strategy for our future Information Financial • ~50% of revenue • Diverse retail offering with • 12,332 parking spaces ~90 stores, 2 duty free • Growth driven by supportive operators
Slide 13: Diverse business activities (2 of 2)
Diverse business activities (2 of 2) 2018 Investor Roadshow Highlights Investment Property Hotel portfolio Associates Company overview Strategy for our future Information Financial • $1.4b portfolio value at 31 • Novotel 263 room 4+star • ~25% stake in Queenstown Dec. 2017, $90m rent roll hotel, Auc
Slide 14: Significant land holdings
Significant land holdings 2018 Investor Roadshow Highlights Company overview Strategy for our future Information Financial Outlook Auckland Airport boundary Central Park, New York • Auckland Airport owns approximately 1,500 hectares of freehold land (bounded by the blue line and sea shore). 250 hect
Slide 15: Capacity for long term growth
Capacity for long term growth 2018 Investor Roadshow Highlights Company overview Strategy for Runways 2 1 (planning for second) our future Information Land area 1,227 hectares 1,500 hectares Financial Aircraft movements 475,241 173,510 Outlook 12 months to Feb-18 Passenger movements 78.2 million 19.
Slide 16: Connected business location
Connected business location 2018 Investor Roadshow Highlights Company overview Strategy for our future Information Financial Auckland Airport is centrally located Outlook and well connected • 22km from Auckland’s CBD, direct motorway access • ~25 mins north to the CBD, 1 hour south to Hamilton • Sit
Slide 17: Stable regulatory environment
Stable regulatory environment 2018 Investor Roadshow Overview Highlights • Dual-till regime, with the aeronautical segment subject to information disclosure regulation under the Commerce Act ~50% of revenue is 1986 regulated1 Company overview 350 • Disclosure regime includes monitoring of service st
Slide 18: Strategy for our future
Strategy for our future
Slide 19: Addressing today's opportunities (1 of 2)
Addressing todays opportunities…(1 of 2) 2018 Investor Roadshow Highlights Our foundations Safety and Customer Focus Operate Company overview security, always centred on people sustainably Strategy for our future What we will do Why it matters Example measures of success1 Primary driver of sustainab
Slide 20: Setting up for long term growth (2 of 2)
…and setting up for long term growth (2 of 2) 2018 Investor Roadshow Investment today… …enables tomorrow’s growth Highlights 30 year master plan Enables 30+ years of growth Company overview Principled airport development Planning addressing legacy issues supported by efficient and timely development
Slide 21: Strategic priority 1: Growing Travel and Trade Markets
Strategic priority 1: Growing Travel and Trade Markets 2018 Investor Roadshow Macro environment is supportive of continued, albeit slower, capacity growth Highlights Aircraft technology is making long Fuel Prices rose in 2017 but remain New aircraft growth is forecast to haul routes to NZ more profi
Slide 22: Demand for travel to New Zealand remains high
Demand for travel to New Zealand remains high 2018 Investor Roadshow Hong Kong China Japan Canada Highlights 15% 36% 26% 33% Germany Company overview 42% Strategy for our future 37% 48% 33% Information Financial UK 24% S.Korea USA Outlook Taiwan 32% 42% Philippines 38% India 35% Brazil 24% Chile 38%
Slide 23: Strategy to grow, sustain and diversify
Strategy to grow, sustain and diversify 2018 Investor Roadshow Highlights Company overview Grow Capacity Sustain Capacity Diversify markets Strategy for our future • Continue to focus on growing • Continue to invest in market • De-risk market profile by seat capacity to Asia Pacific development acti
Slide 24: Route development is focused on multiple opportunities for growth
Route development is focused on multiple opportunities for growth 2018 Investor Roadshow Highlights India direct India direct China direct capacity capacity capacity Company overview Strategy for our future Information Year-round US Financial carriers Middle East Incremental carriers growth Asia Out
Slide 25: Air cargo capacity has increased rapidly
Air cargo capacity has increased rapidly 2018 Investor Roadshow Auckland-China air cargo Food and beverage is the New Zealand products Highlights capacity increased 7.8x fastest growing commodity are highly traded in Asia over the last 6 years China-Auckland top growth Company overview commodities (
Slide 26: Our strategy to grow trade markets
Our strategy to grow trade markets 2018 Investor Roadshow Highlights Auckland Airport is New Zealand’s third largest Cargo Port (by value), handling >200,000 tonnes of cargo annually1 Company overview Transformational project underway to position Auckland Strategy for our future Airport as a world c
Slide 27: Strategic priority 2: Strengthen our consumer business
Strategic priority 2: Strengthen our consumer business 2018 Investor Roadshow Significant retail development is ongoing Highlights • International departures retail net lettable area is increasing by 65% Company • The expanded departures Duty Free stores and first overview Destination stores opened
Slide 28: Car parking business is growing rapidly
Car parking business is growing rapidly 2018 Investor Roadshow Parking income FY13 – FY17 Growth drivers Highlights 8.7% CAGR 60 50 diversifying Company overview 40 the product mix $m 30 passenger Strategy for 20 growth our future 10 investment 0 2013 2014 2015 2016 2017 in capacity Information Fina
Slide 29: Retail and parking strategy focused on three horizons
Retail and parking strategy focused on three horizons 2018 Investor Roadshow To provide a solid foundation for growth and remain relevant to our customers we are focused on Highlights achieving the following objectives: 1 2 3 Company overview Leverage physical Extending reach & Strengthen customer t
Slide 30: Investment property demand is high
Investment property demand is high 2018 Investor Roadshow Rent roll FY13 – 1H18 Growth drivers Highlights +23.0% 100 • Portfolio of outstanding quality, long 90 leases and exceptional tenants Company 13.5% CAGR overview 80 70 • Significant development land reserves Rent roll $m 60 in a market starve
Slide 31: Hotel offering is expanding
Hotel offering is expanding 2018 Investor Roadshow Auckland Airport hotel growth Growth drivers Highlights $250 • Coherent suite of hotel products +11.0% CAGR Revenue per available room • Construction award pending for new Company overview $200 Pullman 5 star terminal hotel. New $150 mid-tier hotel
Slide 32: Strategic priority 3: Investing to support current & future growth
Strategic priority 3: Investing to support current & future growth 2018 Investor Roadshow Highlights Phase 6 Arrivals and MPI expansion, check-in Phase 4 (completed) expansion Second runway Company overview Pier B extension, Progressing planning 17-19 contact stands and earthworks Strategy for our f
Slide 33: Strong demand growth and asset renewal is driving capital investment
Strong demand growth and asset renewal is driving capital investment 2018 Investor Roadshow Highlights Company overview Strategy for our future Information International departures expansion New domestic jet terminal Financial Transport Outlook Nth Park & Ride Key benefits: Nixon Rd Bypass • Improvi
Slide 34: International departures expansion
International departures expansion 2018 Investor Roadshow Project status: ~90% complete Highlights Key benefits: New farewell • ~35,000 sqm of new and area refurbished floor space Company overview • Doubled capacity for departure processing Void including customs clearance infill New truck dock Stra
Slide 35: New Domestic Jet Terminal
New Domestic Jet Terminal 2018 Investor Roadshow Project status: Design phase Highlights Key benefits: • Integrated terminal allowing direct access between domestic and Company overview international travel • Step change increase in passenger processing capability • Strategy for Common landside func
Slide 36: Sharing benefits with the community
Sharing benefits with the community… (1 of 2) 2018 Investor Roadshow Recognition for our efforts Highlights Company overview Strategy for our future Business and Community Shares (BACS) recognised Auckland Airport as a top New Zealand Businesses in the Social Index 2017-18 Information Financial Educ
Slide 37: Protecting the natural environment
…and protecting the natural environment (2 of 2) 2018 Investor Roadshow Achievements 2012-17 Goals Science-based targets Highlights 47% 1st Company overview Strategy for Reduction in waste per Company in Oceania to adopt an our future We achieved our 2020 goal of reducing passenger our environmental
Slide 38: Financial information
Financial information
Slide 39: 1H18 results at a glance
1H18 results at a glance 2018 Investor Roadshow Revenue Passenger movements Highlights 6.9% $332.4m 6.4% 10.0m Company overview Strategy for Operating EBITDAFI Aircraft movements our future 6.0% $250.1m 4.2% 88,113 Information Financial Outlook Underlying profit Interim dividend per share 7.8% $133.
Slide 40: Strong five year financial performance
Strong five year financial performance 2018 Investor Roadshow Highlights 4 year For the year ended 30 June 2017 2016 2015 2014 2013 CAGR NZ$m Revenue 629.3 573.9 508.5 475.8 448.5 8.8% Company overview Expenses 156.2 143.6 128.5 120.6 117.6 7.4% Earnings before interest, taxation, depreciation, fair
Slide 41: Capital structure
Capital structure 2018 Investor Roadshow Highlights For the year ended 30 June 2017 2016 2015 2014 2013 Debt / debt + market value of equity 19.5% 19.7% 22.5% 24.7% 22.8% Company overview Debt / EBITDAFI 4.3x 4.4x 4.5x 4.2x 3.5x Funds from operations / net debt 16.5% 16.7% 15.3% 16.0% 19.9% Funds fr
Slide 42: Benchmarks favourably in a global context
Benchmarks favourably in a global context 2018 Investor Roadshow Highlights Passengers (million) 19.6 43.3 64.5 249.2 29.4 101.5 129.2 70.0 Company overview Dec17 Share of ** country’s N/a N/a N/a international pax Strategy for our future International visitation to N/a N/a N/a country by air % Info
Slide 43: Outlook
Outlook
Slide 44: Outlook
Outlook 2018 Investor Roadshow FY18 Guidance Highlights • Underlying profit after tax (excluding any fair value changes and other one-off items) guidance of between $250m and $257m Company overview • Capital expenditure guidance of between $410m and $460m Strategy for our future • This guidance is s
Slide 45: Reference material and further details
Reference material and further details 2018 Investor Roadshow Highlights Reference material • Auckland Airport website: https://corporate.aucklandairport.co.nz/ • Regulation overview: https://corporate.aucklandairport.co.nz/investors/regulation Company overview • ADR overview: https://corporate.auck
Slide 46: Important disclaimer
Important disclaimer 2018 Investor Roadshow This presentation is given on behalf of Auckland International Airport Limited. Information in this presentation: • is provided for general information purposes only, and is not an offer or invitation for subscription, purchase, or recommendation of securi
Slide 47: Appendix
Appendix
Slide 48: 1H18 income statement
1H18 income statement 2018 Investor Roadshow Highlights For the 6 months to 31 December (NZ$m) 2017 2016 Change Revenue 332.4 310.9 6.9% Company overview Expenses 82.3 75.0 9.7% Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates 250.1 235.9 6.0% St
Slide 49: 1H18 passenger growth
1H18 passenger growth 2018 Investor Roadshow Highlights For the 6 months to 31 December* 2017 2016 Change International arrivals 2,592,506 2,462,690 5.3% Company overview International departures 2,477,695 2,328,885 6.4% International passengers excluding transits 5,070,201 4,791,575 5.8% Strategy f
Auckland International Airport — Non-Deal Roadshow (April 2018) on 6ix