Auckland International Airport Limited · NZX:AIA
Auckland International Airport — Merger or Acquisition (July 2010)
21 slides from Auckland International Airport's merger presentation, Jul 8, 2010
Slide 1: A strategic alliance to boost tourism
A strategic alliance to boost tourism 8 July 2010
Slide 2: Contents
Contents • Strategic alliance announced • Strategic context • Growth strategy update • Summary of strategic alliance • Rationale for strategic alliance • Benefits to Queenstown • Benefits to Auckland • Deal structure • Investment proposition • NQA update • Appendices: – Queenstown overview – Queenst
Slide 3: Strategic alliance announced
Strategic alliance announced: Auckland Airport and Queenstown Airport have formed a strategic alliance to boost tourism growth through Queenstown and Auckland Alliance is established via an agreement to collaborate on air services development and destination marketing as well as pursue joint ini
Slide 4: Strategic context
Strategic context Primary goal: to drive business growth ahead of the organic growth rate and achieve sustained double-digit profit growth Reallocating resources and maximising Aim: assets to build capability, maximise Accelerated pax growth revenue, minimise cost, and ultimately add Greater ret
Slide 5: Growth strategy update
Growth strategy update Theme Achievements WIN-WIN • Positive regulatory environment foreshadowed in Commerce Commission draft determination (creating a healthier • Northern runway construction deferred for 12 months and a further review underway commercial • New roading plan developed which avoids $
Slide 6: Strategic alliance summary
Strategic alliance summary Queenstown Airport and Auckland Airport are forming a strategic alliance to boost tourism growth and enhance the performance of their respective airport businesses The key points of the alliance include: Focus on coordinated destination promotion and route developmen
Slide 7: Strategic alliance summary (ctd)
Strategic alliance summary (ctd) Auckland Airport will make an initial equity investment of $27.7m in Queenstown Airport, and be issued with 24.99% of its shares This commitment by Auckland Airport cements the alliance and provides incentives for both parties to maximise the benefits of the stra
Slide 8: Rationale for strategic alliance
Rationale for strategic alliance Auckland Airport is New Zealand‟s only global scale international airport and handles over 70% of all international visitors coming to New Zealand Auckland Airport has invested significantly over the last 18 months in air services development, sales and destinati
Slide 9: Rationale for strategic alliance (ctd)
Rationale for strategic alliance (ctd) Regarded as one of the „jewels in the crown‟ of New Zealand tourism, Queenstown is a highly attractive destination that strengthens the business case when Auckland Airport is marketing air services into New Zealand internationally Queenstown has the stronge
Slide 10: Benefits to Queenstown
Benefits to Queenstown Over and above the growth forecast by Queenstown Airport as a well run standalone airport business, it is expected that the Strategic Alliance will, within five years, deliver: An additional 176,000 (132,000 via domestic, 44,000 via direct international) passenger movements
Slide 11: Forecast Queenstown Airport 2010-2015 Growth
Forecast Queenstown Airport 2010-2015 Growth 1400000 1,249,000 1200000 1,072,000 1000000 811,000 800000 600000 400000 200000 0 2010 Actual 2015 Standalone forecast 2015 Alliance driven forecast International annual pax Domestic annual pax
Slide 12: Benefits to Auckland
Benefits to Auckland Paying a fair price for a great asset with exposure to a high growth market In addition to partial ownership benefits, Auckland Airport will grow its own long-haul passenger volumes through highly coordinated multi destination promotion and itinerary management, working in p
Slide 13: Deal structure
Deal structure Effective 8 July 2010, Auckland Airport will acquire an initial 24.99% shareholding of the increased capital in Queenstown Airport by subscribing for 4.0 million new shares at a price of $6.91 per share, for a total consideration of $27.7 million. Queenstown Airport may exercise a
Slide 14: Investment proposition
Investment proposition Queenstown Airport has achieved high growth in the past, and this is expected to continue The majority of growth comes from high yield international travellers This translates into high revenue and EBITDA growth Future growth is supported by indicative schedules for FY
Slide 15: Investment proposition (ctd)
Investment proposition (ctd) On a multiple basis, the investment value compares well with Auckland Airport‟s trading range Represents a “fair price”, reflective of Queenstown Airport‟s high growth prospects offset by Auckland Airport‟s minority position Auckland Airport incurs a premium for ac
Slide 16: Investment proposition (ctd)
Investment proposition (ctd) Queenstown Airport is currently serviced by Air New Zealand, Jetstar, Qantas, and Pacific Blue, with international flights from Sydney, Brisbane, and Melbourne Significant capital expenditure has been spent in the previous 5 years to upgrade facilities and infrastruc
Slide 17: NQA update
NQA update Extensive collaboration at a working level well underway In active discussions about formalising operating partnership now that Technical Services Agreement between NQA and Queensland Airports Limited has been terminated Performance milestones for NQA have recently been published
Slide 18: Appendices
Appendices: A | Auckland of Airport QUEENSTOWN airport
Slide 19: Queenstown Airport overview
Queenstown Airport overview Situated in the Wakatipu Basin, a short drive to Queenstown, overlooked by the Remarkables mountain range. Queenstown Airport is a key driver of economic prosperity in the Lakes District and an outstanding international gateway for the region. Queenstown Airport has
Slide 20: Queenstown overview
Queenstown overview Queenstown is an international resort town in Otago, known for its commerce-oriented tourism, especially adventure and ski tourism. It is popular with international and New Zealand travellers alike. Queenstown provides adventure tourism during the day and a vibrant nightlif
Slide 21: Queenstown Airport
QUEENSTOWN airport
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