Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Debt Investor Presentation (March 2017)
30 slides from Auckland International Airport's debt investor presentation, Mar 2, 2017
Slide 1: Debt market update
Debt market update March 2017 Philip Neutze Chief Financial Officer
Slide 2: Important Notice
Important Notice 2017 March Debt Investor Update Presentation Disclaimer This presentation is for preliminary information purposes only and is not an offer to sell or the solicitation of any offer to purchase or subscribe for any financial products and no part of it shall form the basis of or be rel
Slide 3: Agenda
Agenda 2017 March Debt Investor Update Presentation Page 1. Company overview 5 2. Strategy for our future 12 3. Financial information 16 4. Outlook 22 Appendices 3
Slide 4: Auckland Airport at a glance
Auckland Airport at a glance 2017 March Debt Investor Update Presentation 18.3 million 91 % share of long haul arrivals to New Zealand annual passengers to December 2016 Highlights 29 international airlines including Auckland Airport announced in 2016 Company share of overview 46 international desti
Slide 5: Company overview
Company overview
Slide 6: Auckland Airport is the busiest in New Zealand
Auckland Airport is the busiest in New Zealand 2017 March Debt Investor Update Presentation New Zealand international airports by passenger numbers for 12 months to 30 June 2016 Highlights • The largest airport in New Zealand Auckland 16.682 million • ~74% of international passengers to New Zealand
Slide 7: Connecting New Zealand to the world
Connecting New Zealand to the world 2017 March Debt Investor Update Presentation Auckland Airport connects New Zealand to 46 international destinations Highlights Company overview London Vancouver Strategy for our future Beijing San Francisco Tianjin Seoul Chengdu Tokyo Los Angeles Chongqing Houston
Slide 8: Regulatory environment
Regulatory environment 2017 March Debt Investor Update Presentation Overview • Dual-till regime, with the aeronautical segment (1st till) subject Highlights ~50% of revenue is to information disclosure regulation under the Commerce Act regulated 1 1986 350.0 Company overview • Disclosure regime incl
Slide 9: Proven passenger growth
Proven passenger growth 2017 March Debt Investor Update Presentation Total Passengers at Auckland Airport (excl. Transits) 18.0 Highlights Half 1 Half 2 16.0 Company overview Sub Prime 14.0 Crisis and Christchurch Annual passengers (m) Global Earthquake Avian Flu Recession 12.0 Outbreak Strategy for
Slide 10: Compares favourably to Australasian airports
Compares favourably to Australasian airports 2017 March Debt Investor Update Presentation Passenger growth rates % for 12 months to International vs domestic passenger mix for 12 December 2016 months to December 2016 Highlights 14.0% 12.5% 12.0% Brisbane 5,410 17,259 Passenger Growth Rates % 10.4% C
Slide 11: Diverse business activities
Diverse business activities 2017 March Debt Investor Update Presentation Aeronautical Base • ~50% of revenues come from aeronautical activities • 6 new airlines announced and 10 new routes established in 12 months to 31 December 2016 Highlights • Continued focus on route development Diverse Retail O
Slide 12: Strategy for our future
Strategy for our future
Slide 13: Our strategy
Our strategy 2017 March Debt Investor Update Presentation Adopt an ambitious and innovative approach to help Highlights New Zealand to sustainably unlock the growth opportunities in travel, trade and tourism Grow Travel Markets Company overview Strengthen and extend our retail, transport and hotel S
Slide 14: Delivering on our ambitions
Delivering on our ambitions 2017 March Debt Investor Update Presentation In 2013 we established several ambitious targets under our Faster, Higher, Stronger growth strategy Highlights Aspirations: Where we were in How we tracked to June 2013: December 2016: Company overview 400,000 213,781 366,487 D
Slide 15: Investing for future growth
Investing for future growth 2017 March Debt Investor Update Presentation • Bold 30-year vision developed with international Highlights experts (www.airportofthefuture.co.nz) • Vision based on a combined domestic and international terminal as well as an efficient, Company overview affordable and stag
Slide 16: Financial Information
Financial Information
Slide 17: Strong five year financial performance
Strong five year financial performance 2017 March Debt Investor Update Presentation For the year ended 30 June H1 2017 2016 2015 2014 2013 2012 NZ$m Highlights Revenue 310.9 573.9 508.5 475.8 448.5 426.8 Expenses 75.0 143.6 128.5 120.6 117.6 107.5 Earnings before interest, taxation, depreciation, Co
Slide 18: Summary balance sheet
Summary balance sheet 2017 March Debt Investor Update Presentation For the year ended 30 June Dec 2016 June 2016 June 2015 June 2014 June 2013 June 2012 NZ$m Highlights Cash 28.5 52.6 38.5 41.4 69.2 42.8 Trade and other receivables 55.5 42.3 36.6 29.0 26.8 23.1 Company overview Other current assets
Slide 19: Credit metrics
Credit metrics 2017 March Debt Investor Update Presentation 5.00 Auckland Airport's key credit rating metrics 25.00% 4.50 Highlights 4.00 20.00% 3.50 $454m capital return 3.00 15.00% 2.50 Company overview 2.00 10.00% 1.50 1.00 5.00% Strategy for our future 0.50 FFO Interest Cover Ratio (rolling twel
Slide 20: Funding
Funding 2017 March Debt Investor Update Presentation • Auckland Airport sources debt funding Debt maturity profile as at 31 December 2016 from a variety of markets and maintains $400 Highlights Maturing balance ($m) a wide range of debt maturities $350 $300 • Weighted average maturity of existing $2
Slide 21: Capital expenditure
Capital expenditure 2017 March Debt Investor Update Presentation 450 400 2016 2015 Change For the year ended 30 June 350 $m $m Highlights 300 Capex $m Renewal 18.4 13.7 34.3% 250 200 Growth 224.8 133.9 67.9% Company overview 150 Total capital expenditure 243.2 147.6 64.8% 100 50 Strategy for our fut
Slide 22: Outlook
Outlook
Slide 23: Outlook: Guidance
Outlook 2017 March Debt Investor Update Presentation Guidance Highlights • Ongoing strong performance to date has been in line with expectations • We expect underlying net profit after tax (excluding any fair value changes and other one-off Company overview items) to be between $235 million and $243
Slide 24: Contact details
Contact details 2017 March Debt Investor Update Presentation Debt investor inquiries Campbell De Morgan Treasury Specialist DDI: +64 9 255 9029, Mobile: +64 27 478 3243 campbell.demorgan@aucklandairport.co.nz 24
Slide 25: Questions
Questions
Slide 26: Appendices
Appendices
Slide 27: Significant land holdings
Significant land holdings 2017 March Debt Investor Update Presentation Highlights Company overview Strategy for our future Information Financial Outlook Auckland Airport boundaries Auckland CBD (transposed) • Auckland Airport owns approximately 1,500 hectares of freehold land with ~290 hectares avai
Slide 28: Strong revenue growth across the business
Strong revenue growth across the business 2017 March Debt Investor Update Presentation Revenue by segment Highlights For the year ended 30 June H1 2017 2016 2015 2014 2013 2012 $m Airfield income 59.2 103.4 93.3 87.6 81.6 77.3 Company overview Passenger services charge 85.9 154.9 140.9 131.5 120.2 8
Slide 29: Runway movements growing
Runway movements growing 2017 March Debt Investor Update Presentation Aircraft movements Highlights 180,000 160,000 140,000 120,000 Company overview 107,929 111,704 100,000 110,421 110,832 107,454 104,264 International aircraft 80,000 movements 60,000 Domestic aircraft 40,000 movements Strategy for
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