Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2007 Earnings Presentation
27 slides from Auckland International Airport's earnings presentation, June 2007
Slide 1: Annual Results
Annual Results 12 months ended 30 June 2007 Don Huse, CEO Robert Sinclair, CFO Haere mai - Welcome to Our Airport
Slide 2: Summary of 2007 results
Summary of 2007 results • International pax (excl. transits / transfers) +2.6% • Domestic pax +2.1% • Revenue $321.9m +5.3% • EBITDA $242.8m +1.1% • Result impacted by $9.9m provision for long-term incentive plans • EBITDA $252.7 m +5.2% (excl. for LTI provision) • Surplus after tax $92.0m -10.8%, $
Slide 3: 2007 highlights
2007 highlights • New vision and strategy developed and adopted • Passenger growth returning to trendline • Aeronautical consultation completed, new prices announced • Retail income continued positive trend • Major retail concessions successfully re-tendered • New car parking facilities and services
Slide 4: Ordinary dividends
Ordinary dividends FY07 FY06 Interim – cents per share (cps) 3.75 3.75 Final cps1 4.45 4.45 Total cps 8.20 8.20 TOTAL AMOUNT $100.149m $100.108m Earnings per share (cps)2 7.53 8.44 Payout ratio3 108.9% 97.0% Shares on issue at 30 June 1,221,690,439 1,220,509,639 1 Fully imputed, books close 12 Octob
Slide 5: AIAL passenger movements – FY07
AIAL passenger movements – FY07 % FY07 FY06 change International pax 6,373,427 6,213,647 +2.6 Transits and transfers 912,970 889,388 +2.7 Total international pax 7,286,397 7,103,035 +2.6 Domestic pax 5,068,794 4,963,142 +2.1 TOTAL PAX MOVEMENTS 12,355,191 12,066,177 +2.4 5
Slide 6: AIAL passenger movements – years
AIAL passenger movements – 10 years 14,000,000 12,355,191 +2.4% 12,000,000 Total passengers 10,000,000 International 8,000,000 6,000,000 4,000,000 Domestic 2,000,000 0 98 99 00 01 02 03 04 05 06 07 Year 6
Slide 7: Monthly passenger volumes
Growth on pcp -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Monthly passenger volumes Oct-05 Nov-05 Dec-05 Jan-06 Month Passenger growth Feb-06 Mar-06 Apr-06 May-06 Jun-06 Trendline Jul-06 Aug-0
Slide 8: Arriving passengers at Auckland by country
Arriving passengers at Auckland by country Country of last permanent residence FY07 % of total FY06 % of total Movement % change New Zealand 1,415,325 44.7 1,364,348 44.5 50,977 3.7 Australia 514,446 16.3 502,828 16.4 11,618 2.3 UK (incl. Ireland) 255,116 8.1 250,725 8.2 4,391 1.8 USA 181,700 5.7 18
Slide 9: Aircraft statistics – FY07
Aircraft statistics – FY07 % FY07 FY06 change Aircraft International movements 38,406 38,759 -0.9 Domestic movements 117,469 122,140 -3.8 TOTAL AIRCRAFT MOVEMENTS 155,875 160,899 -3.1 Cargo Cargo handled (tonnes) 224,515 232,655 -3.5 MCTOW (maximum certificated take-off weight) International (tonnes
Slide 10: Financial overview
Financial overview FY07 FY06 % $m $m change Total revenue 321.9 305.8 +5.3 Operating expenses 79.1 65.6 +20.6 EBITDA1 242.8 240.2 +1.1 Depreciation 43.1 38.5 +11.9 Interest expense 62.7 54.9 +14.3 Surplus before taxation 136.9 146.7 -6.7 Taxation 45.0 43.5 +3.2 Surplus after taxation2 92.0 103.2 -10
Slide 11: Revenue analysis
Revenue analysis FY07 FY06 % % Aeronautical $m $m change Airfield 66.3 20.6 67.4 -1.6 Development charge 64.4 20.0 60.4 +6.6 Terminal services charge 21.9 6.8 17.3 +26.7 Total aeronautical revenue 152.6 47.4 145.1 +5.2 Non-aeronautical Retail 93.7 29.1 86.7 +8.1 Rental 33.3 10.4 31.5 +5.6 Car parks
Slide 12: Expense analysis
Expense analysis FY07 FY06 % % $m $m change Staff1 36.0 19.5 25.9 +38.6 Repairs and maintenance2 23.0 12.5 20.5 +12.1 Rates and insurance 6.3 3.4 5.8 +8.3 Other 13.9 7.5 13.4 +3.9 Total operating expenses 79.1 42.9 65.6 +20.7 Depreciation 43.1 23.3 38.5 +11.9 Interest 62.7 33.9 54.9 +14.3 TOTAL EXPE
Slide 13: Statement of financial position
Statement of financial position June 07 June 06 $m $m Non-current assets 2,878 2,731 Current assets 29 27 TOTAL ASSETS 2,907 2,758 Non-current liabilities 596 602 Current liabilities 377 301 Equity 1,934 1,855 TOTAL EQUITY AND LIABILITIES 2,907 2,758 Equity ratio 66.5% 67.3% Debt to enterprise value
Slide 14: Key financial ratios
Key financial ratios FY07 FY06 Operating margin1 75.4% 78.5% Effective tax rate 32.8% 29.7% Debt / debt + equity 32.0% 31.7% Capex / depreciation (times) 2.5 2.8 Interest cover (times)2 3.0 3.5 Operating staff numbers 281 278 1 Excluding the LTI provision, operating margin was 78.5% 2 Excluding the
Slide 15: Operating efficiencies
Operating efficiencies FY07 FY06 Passengers per operating staff 43,908 43,404 Operating revenue per operating staff 1,144,126 1,100,051 Operating revenue per pax $26.06 $25.34 Retail revenue per international pax $12.87 $12.21 Car park revenue per pax $2.26 $2.22 Operating staff costs / operating re
Slide 16: Our vision and strategy “Representing our country”
Our vision and strategy “Representing our country” • Core values: Outstanding, Uniquely Kiwi, Welcoming • Strategy: • Grow New Zealand tourism and business • Provide a unique and compelling New Zealand airport experience • Deliver outstanding customer service • Operate in a safe, secure, sustainable
Slide 17: Aeronautical update
Aeronautical update • Aeronautical revenue + 5.2% • Major expansion projects progressing well • Comprehensive three year pricing consultation concluded • New aeronautical charges: • Landing charges: 2.5% p.a for five years, from 1 September 2007 • ADC: effective $1 increase for three years, commenci
Slide 18: Retail update
Retail update • Retail income +8.1% • Income per international pax $12.87 (+5.4%) • Strong focus on enhancing passenger choice, service and experience • Major retail concessions awarded: • Foreign exchange (Travelex) • Car rentals (Hertz, Avis, Budget, Thrifty and Europcar) • Duty free (DFS) • Singl
Slide 19: Retail update (continued)
Retail update (continued) • Combined uplift in income of $7m in FY08 and $10m in FY10 • New 150m2 ‘adidas’ flagship store • DTB retail precinct open, trading well • ITB expanded arrivals duty free on track to open in April 2008 • Largest arrivals duty free store in Asia/Pacific • ITB first floor red
Slide 20: Retail income per international passenger
Retail income per international passenger $16.00 $14.49 $13.79 $13.58 $13.60 $13.11 $14.00 $13.10 $12.74 $11.82 $12.60 $12.62 $11.59 $11.71 $12.00 $10.68 $10.89 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 30 Jun 01 30 Jun 02 30 Jun 03 30 Jun 04 30 Jun 05 30 Jun 06 30 Jun 07 31 Dec 00 31 Dec 01 31 Dec 02 31
Slide 21: Car parking update
Car parking update • Car park income +4.1% • Total of 8,449 spaces • Solid growth from domestic • Dedicated business parking trading well • International growth slower • Management of car parks outsourced to Wilsons Parking • Forecourt services outsourced to ADT • Launch of new facilities, services
Slide 22: Property update
Property update • Rental income +5.6% • $18m invested during the year • Developments completed include: • NZ Van Lines ($7.8m) • Fliway Logistics ($5.0m) • Expeditors ($6.0m) • Fedex extension ($1.8m) • Lollipops childcare ($1.2m) • Air NZ cargo and freight ($3.0m) • New developments include: • Air
Slide 23: Capex FY07
Capex FY07 $m Key projects Airfield 10.2 Taxiway reconstruction and northern runway Expanded arrivals ($28.4m) and Pier B International terminal 44.1 ($6.1m) New retail precinct ($8.0m) and renovation Domestic terminal 20.6 of Air NZ terminal ($12.4m) Car parking 0.5 Domestic multi-level facility In
Slide 24: Capex estimates FY08 to FY09
Capex estimates FY08 to FY09 FY08 FY09 $m $m Airfield 14 22 International terminal: Expanded arrivals 46 - Pier B 26 8 Stage 3B 12 23 Other 16 11 Domestic terminal renovation 7 1 Car parking 1 - Infrastructure and other 14 13 Property development 25 35 TOTAL CAPEX 161 113 • Capex of $90 – 100m (excl
Slide 25: Other achievements in 2007
Other achievements in 2007 • New people capability framework “Our Spirit” launched • Upgrade of Operations Centre and Emergency Response • Introduction of LAGs screening • Installation of low visibility landing equipment progressed • Expansion of IT & T systems, wireless infrastructure and MIS • Sur
Slide 26: Outlook
Outlook • Passenger growth returning to positive trend • Outlook for airlines positive • Major developments on time, on budget • Aeronautical pricing reset • Major retail concessions successfully tendered • Car park growth resuming and repositioned • Property development opportunities growing • Reve
Slide 27: Auckland International Airport Limited
Auckland International Airport Limited 27
Auckland International Airport — FY2007 Earnings Presentation on 6ix