Auckland International Airport Limited · NZX:AIA
Auckland International Airport — FY2024 Earnings Presentation
38 slides from Auckland International Airport's earnings presentation, Aug 22, 2024
Slide 1: Annual results presentation
Annual results presentation 22 August 2024 Carrie Hurihanganui Chief Executive Stewart Reynolds Chief Financial Officer Auckland Airport
Slide 2: Important notice
Important notice Disclaimer This presentation is given on behalf of Auckland International Airport Limited (NZX: AIA; ASX: AIA; ADR: AUKNY). Informationin this presentation: + _ is provided for general information purposes only, and is not an offer or invitation for subscription, purchase, or recomm
Slide 3: FY24 highlights
FY24 highlights Aeronautical 18.5m passenger movements up 17% © 8.5m domestic PAX up 5% Q 9.3m international PAX up 30% © 0.8m transit PAX up 26% © 42 international destinations up 2 (4) 27 international airlines up 2 FY24 Annual results presentation Auckland Airport Financial $895.5m revenue up 43%
Slide 4: We are building a better future
We are building a better future Strong, sustainable financiahresults, building a Investing in critical infrastructure to create an dynamic commercial community that supports airport that is more resilient and is fit for future New Zealand's economic prosperity generations Working to deliver an enhan
Slide 5: Financial results
Auckland Airport Financial results
Slide 6: Other Other rental Investment
Other Other rental Investment property Car park Retail Aeronautical
Slide 7: Revenue growth lifts underlying profit
Revenue growth lifts underlying profit For the year ended 30 June Revenue Expenses EBITDAFI4 Share of profit / (loss) from associate and joint ventures Derivative fair value change Property, plant and equipment revaluation Investment property fair value change Depreciation Interest expense and other
Slide 8: Passenger growth elevates revenue across the business
Passenger growth elevates revenue across the business For the year ended 30 June Airfield income Passenger services charge Retail income Car park income Investment property rental income Other rental income Flood related income Other income Total revenue FY24 Annual results presentation Auckland Air
Slide 9: Operating expenses
• Staff Asset management, maintenance and airport operations • Rates and insurance Marketing and promotions Professional services and levies Fixed asset write-offs, impairments and termination costs • Reversal of fixed asset impairment and termination costs Flood-related expense and impairment rever
Slide 10: Significant lift in capital expenditure
Significant lift in capital expenditure $1,158.7 million of capital expenditure in the year spanning both aeronautical and commercial assets Terminal integration: $283 million * Significant construction activity including the new eastern bag hall, western truck dock baggage system and inner terminal
Slide 11: Significant investment phase funded by new borrowings
Significant investment phase funded by new borrowings Aeronautical recovery and commercial growth has driven improved operating cash flows which, combined with increased borrowing, supports the major investment phase in 2024 financial year FY24 Cash Flow $m 589.9 — (116.8) Gis) 8410 a (99.8) j nes |
Slide 12: Strength of balance sheet persists
Strength of balance sheet persists As at ($m) Current assets Cash Other current assets Non-current assets Property, plant and equipment Investment property Other non-current assets Total assets Current liabilities Non-current liabilities Term borrowings Other non-current liabilities Equity Total lia
Slide 13: Liquidity position and credit metrics continue to be robust
Liquidity position and credit metrics continue to be robust Strong financial metrics with covenant headroom and liquidity continue to support the planned investment * Total drawn debt of $2,685 million as at 30 K dit metri . . 5 FA June 2024, an increase of 48% or $868 million ‘ey credit metrics Dra
Slide 14: Building a better future
Auckland Airport Building a better future
Slide 15: Connecting New Zealand with the world
Connecting New Zealand with the world During the year ended 30 June 2024, 27 airlines connected Auckland Airport with 42 destinations across the Middle East, Asia, the Americas and the Pacific Islands compared with 25 airlines and 40 destinations in the year ended 30 June 2023 *@Ee 4 cigs We rs ox 0
Slide 16: International passenger mix recovery
International passenger mix recovery International passenger movements recovered to 87% of the FY19 pre-COVID equivalent. NZ nationals have recovered to 95% compared to all other passport holders at 83% International PAX recovery 10% » 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% PRHR SSSR PS SS 5335
Slide 17: Domestic recovery remains challenged
Domestic recovery remains challenged Auckland Airport's domestic recovery is lagging its peers due to capacity issues impacting domestic carriers Domestic PAX recovery Domestic capacity recovery Domestic capacity Regional Trunk 100% ‘ 87% 2 1% 90% ° a NY i how Sas 80% | ao 7.0 70% i « 60 60% FY23: i
Slide 18: Delivering improved customer experience
Delivering improved customer experience Continued streamlining of processes and investments in new capabilities are driving reduced customer journey times and a smoother travel experience Improved pick up and drop off The Transport Hub offers 320 metres of covered kerbside access close to the intern
Slide 19: Financial performance outlook highlights
Building a Financial Outlook Highlights 2024 better future performance Interim Results Page 19
Slide 20: Significant progress toward terminal integration with works well advanced
Significantsorogress toward terminal integration with works well advanced * Completion of key enabling projects including: — the new eastern bag hall providing increased capacity and an improved operating environment; = airport operations centre; and — relocation of eastern airfield operations inclu
Slide 21: When complete, terminal integration will transform the customer experience
When complete, terminal integration will transform the customer experience * Key features of the planned integrated terminal: — 12jet aircraft gates capable of handling Code C aircraft or 6 Code E jet aircraft; — 26% more gate seat capacity, with a further 10% seat capacity in dedicated bus lounges
Slide 22: Resilient retail performance driven by a refreshed experience and greater choice
Resilient retail performance driven by a refreshed experience and greater choice ¥ — . es avs Ata glance Performance Development activity q * Retail income rose 41% on FY23 to $185 million, reflecting —_ errereincame + Renovations are currently being undertaken across the $184.5 million indhopestite
Slide 23: Car park income
of car park income in the period number of public car parks number of exits? average revenue per public car park space 9. Exits whioh generated parking income FY24 Annual results presentation Auckland Airport Parking revenue is up 15% to $66.4 million in the period with increased demand for travel f
Slide 24: Investment property
Investment property portfolio value Commercial property rent roll!© Commercial property portfolio occupancy"! Commercial property weighted average lease term of land available for property development average hotel occupancy average hotel daily room rate FY24 Annual results presentation Auckland Air
Slide 25: Carbon
Carbon Whilst emissions have increased on the prior year, initiatives to decarbonise our operations have resulted in a 25% decrease in scope | and 2 emissions against the 2019 baseline Reused end of life runway slabs as backfill for remote stands and invested in low carbon concrete Efforts to decarb
Slide 26: Regulatory update
Regulatory update Review of price setting event 4 On 17% July 2024, the Commerce Commission (the “Commission") issued its draft report into Auckland Airport's pricing decisions for the five-year period running from 1 July 2022 to 30 June 2027 Auckland Airport welcomed the draft conclusion that the p
Slide 27: Outlook
Outlook Guidance + Aswe look to the coming year, we continue to see interest from new and existing international airlines in providing additional capacity into AKL * However, uncertainty around the impact of domestic macroeconomic environment remains, as well as external factors continuing to constr
Slide 28: Slide 28
Slide 29: Supplementary slides
Supplementary slides
Slide 30: Underlying profit reconciliation
Supplementary slides: Underlying profit reconciliation 2024 2023 Reported Adjustments Underlying Reported Underlying For the year to 30 June($m) profit profit’? profit Adjustments profit? EBITDAFI” per income statement 614.0 2 614.0 397.1 - 397.1 Investment property fair value change (15.3) 15.3 e (
Slide 31: Aircraft movements and MCTOW
Supplementary slides: Aircraft movements and MCTOW For the year ended 30 June Aircraft movements International aircraft movements Domestic aircraft movements Total aircraft movements MCTOW (tonnes) International MCTOW Domestic MCTOW Total MCTOW 2024 2023 53,024 42,423 105,161 101,998 158,185 144,421
Slide 32: Total passenger movements
Supplementary slides: Total passenger movements Precovip “of pre For the year ended 30 June 2024 2023 Change 2019" ooo International passengers excluding transits 9305620 7,174,471 30% 10,506,660 89% Transit passengers 753,648 599,084 26% 1,001,328 78% Total international passengers 10,059,268 7,773
Slide 33: Associates' performance
Supplementary slides: Associates’ performance For the year ended 30 June ($m) 2024 2023 Change 2 ON Queenstown Airport (24.99% ownership) Total revenue 647 59.6 9% Queenstown Airport EBITDA 461 43.9 5% Underlying earnings (Auckland Airport's share) 5 4) 57 (28)% Domestic passengers 1,630,389 1,633,4
Slide 34: Passenger movements by country
Supplementary slides: Passenger movements by country Passenger movements excluding transits 2024 2023 Change Share oftotal «+ catend, Top 10 countries of origin / destination 2024 calencar year 2019 movements Australia 3,976,335 3,415,983 16% 43% 88% United States 980,979 762,285 29% 1% 100% China 7
Slide 35: Passenger arrivals by country of residence
Supplementary slides: Passenger arrivals by country of residence International passenger arrivals Country of last permanent residence 2024 2023 Change Share of total Share of total 2024 arrivals 2023 arrivals New Zealand 2,336,520 774,116 32% 50% 49% Australia 715,955 684,129 5% 15% 19% United State
Slide 36: Visitor arrivals by purpose of visit
Supplementary slides: Visitor arrivals by purpose of visit Visitor arrivals by purpose of visit 2024 2023 Change Share of Share of Purpose of visit total 2024 total 2023 arrivals arrivals Foreignresidents Holiday 932,222 599,217 56% 20% 7% Visit friends/relatives 755,195 702,234 8% 17% 20% Business/
Slide 37: Public car parking capacity as at 30 June
Supplementary slides: Public car parking capacity as at 30 June Public car parking capacity as at 30 June Domestic terminal International terminal Park and Ride Total public car parking capacity FY24 Annual results presentation Auckland Airport 2024 3,136 2,026 431 9,473 2023 3,176 2,638 1,400 7,214
Slide 38: Glossary
Glossary PS Cents per share EBITDAFI Earnings before interest, taxation, depreciation, fair value adjustments and investments in associates FFO Funds from operations FY Financial year to 30 June GAAP Generally accepted accounting principles McTOW Maximum certified take-off weight NPAT Net profit aft
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