Annual Report June 2011
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New horizons Auckland Airport Annual Review 2011 2007 $101.9m Underlying earnings 12.3m Passenger movements in Auckland Te Manukanuka o Hoturoa Marae opened Higher at Auckland Airport New domestic terminal altitudes retail area opened Contents 4 Features Stronger growth Better journeys Greater success Results at a glance 12 Company report _ A breakout year 30 Board profiles _ Across the board 33 Financial report _ A higher altitude Financial report Financial performance 49 The full financials Financial statements 121 Corporate governance Shareholder information Corporate directory 2 011 $120.9m Underlying earnings 13.8m Passenger movements in Auckland Formed alliance with 2010 Queenstown Airport $105.1m Strong growth in Underlying earnings Queenstown Airport and North Queensland 13.4m Airports passenger Passenger movements volumes in Auckland Voted eighth best 2008 2009 Voted ninth best airport in the world airport in the world in Skytrax Awards $103.7m $105.9m in Skytrax Awards New Novotel Auckland Underlying earnings Underlying earnings Airport opened as part Formed alliance with of expanding property 13.2m 13.0m North Queensland portfolio Passenger movements Passenger movements Airports in Auckland in Auckland International departures More than 850,000 extra area revamp completed Domestic terminal Voted tenth best airport in international seats added and retail performing well refurbished world in Skytrax Awards Asia clearly emerging More air connections Removal of international New international as main driver of global with Asia, in particular departure fee pier opened travel demand China, opened up Stronger growth We’re growing Auckland Our Airport Business District is attracting many high- We’re growing quality businesses and connections We’re growing the amenities, we are New Zealand economy transporting millions of dollars We now provide more Our outstanding work in of high-value airfreight each air connections and growing air services means year and we are directly or destination choices between we are now delivering over indirectly facilitating around New Zealand and overseas 350,000 extra visitors a quarter of the total GDP markets than ever before, into the New Zealand of the entire Auckland particularly with Asia, visitor economy regional economy the world’s growth engine We’re growing service We’re determined choices for travellers We are determined to play and business our part in growing travel, With the new international trade and tourism for the departures shopping markets we serve experience complete, two new airport hotels opened, a surge of new property developments completed or near completion and a much wider range of parking options including booking online, there are now many more choices of products and services Better journeys We’re improving the passenger We have a experience We’re committed smarter airport We’ve recognised that to making There’s been the the existing domestic journeys better introduction and expansion terminal is coming to the In the 2011 global Skytrax of SmartGate and the end of its useful life and Awards, voted on by over roll-out of many LEAN Six we’re busy forging a 11 million people, we were Sigma-led initiatives to help future long-term pathway awarded the best airport make processing more for the development of in Australia/Pacifi c for the effi cient than ever, we’ve an integrated terminal, third year in a row and voted expanded the aviation supported by a second eighth best airport in the security processing space runway that, when world, up from ninth in 2010 and we’ve worked with fi nished, will provide an and tenth in 2009; that’s MAF Biosecurity on their even better passenger a journey shareholders transition to more risk- experience for domestic can be proud of based biosecurity screening and international travellers We’re a key part We’re taking of the tourism our community journey on a journey We’re not just the fi rst We’ve continued a wide and last impression of range of positive community New Zealand, we are a initiatives, including a major player in the support comprehensive sustainability and promotion of programme, a number New Zealand tourism. of long-term sponsorships We have a big role to play and the good works in developing air services of our Auckland Airport and travel choices, and Community Trust our ambition to grow the number and value of visitors is good not just for us, it’s good for tourism and for New Zealand Greater success Our airline partners are successful We have some new airline friends, including some of the biggest airlines in the world in China Southern and Continental; we have ambitious airline partners such as Jetstar, We’ve had a successful which is growing fast, fi nancial year We have successful and our home airline airport partners We have a resilient business partner Air New Zealand and, despite the tough Our partnerships with has continued to show times and natural events Queenstown Airport and its world-class service, and disasters such as the North Queensland Airports adaptability, innovation Christchurch earthquakes, are going well, and their and ability to compete we’ve made sure that passenger growth has been on the world stage. revenue growth has even more outstanding than It’s all part of a successful outstripped cost growth that of Auckland airline partner mix We have successful We’ve had We’re far relationships more success from fi nished with Government with investors We’ve had important More and more investors Our vision is to become support from the understand our strategy a great New Zealand Government on a wide and can see the results business which is range of fronts that has that we are delivering recognised as a world made it possible for us leader in creating value to deliver greater success from modern airports for New Zealand and we’re working well with the Auckland Council. We have also had a great deal of success working alongside Tourism New Zealand and the rest of the industry 10 Feature Revenue $397.723 million up 9.5% Operating 450 EBITDAFI $298.229 million 400 up 7.9% 350 Underlying profit 350 $120.870 million 300 300 up 15.1% Capital 250 250 250 expenditure $74.774 million 200 200 200 up 37.7% Results 150 150 150 150 at a glance 100 100 100 100 50 50 50 50 Highlights Strong H H H H customer 4-star-plus, 263 rooms 2011 Novotel Auckland Airport satisfaction completed in time for So many awards... top 10 in Rugby World Cup 2011 Supreme winner Red Retail Design Awards 2011 the world Excellence Award at Property for third year running Council Rider Levett Bucknall in Skytrax Awards Awards 2011 Skytrax Best Airport Australia/Pacific 2011 International passenger Queenstown international Frost and Sullivan Best movements up 4.9% passenger growth up 72% Practices Award Won Collaboration in 7,781,819 49.7% of all international visitors Communities category at to New Zealand arrive Robin Hood Awards for the or depart from Auckland Auckland Airport/Leukaemia & Blood Foundation/ Major revamp of international Sky Tower partnership departures completed 2011 Australasian Reporting Awards – Silver Profit after tax up 239.3% Charles Spillane awarded Corporate Lawyers $100.761m Association of New Zealand In-house Lawyer of the Year EarthCheck’s Silver status Auckland Airport Annual Review 2011 Results, highlights and aspirational goals 11 Ordinary Earnings Passenger dividends per share movements 8.70 cents 7.65 cents 13.824 million up 6.1% up 224.2% up 2.8% 20 20 20 18 18 18 MCTOW 5,690,552 tonnes 16 16 16 up 0.4% 14 14 14 7 Aircraft 12 12 movements 12 6 154,290 10 10 down 0.4% 10 5 8 8 200 8 4 6 6 150 6 3 4 4 100 4 2 2 2 50 2 1 They definitely aren’t a Increase passenger Develop property Stay number one Big dreams guide to the market for numbers We want to develop the We know that our business for Auckland the 2012 year, but we With international passengers property business so that the depends on the passenger do have some longer- our biggest value driver we committed rent-roll on property experience, so we are Airport… term aspirations which aim to grow international developments built or committed to remaining we’ve been setting over passenger numbers under construction outside the number one airport in the years since we first (excluding transit passengers) of the terminals is more than Australia/Pacific as rated an additional two million $50 million by FY14. by passengers in the Skytrax outlined our growth movements by FY14. Base year FY09 rent-roll: World Airports survey. strategy in 2009 – our Base year FY09 passenger $30 million Base year FY09 ranking: big dreams if you like. movements: 6.4 million Rent-roll as at 30 June 2011: Number one While it will be Passenger movements $37 million Ranking in FY11: Number one extremely challenging in FY11: 6.8 million to achieve even some Expand our retail offering Integrate domestic of them, they do help Grow Chinese and international We want to develop the and Indian arrivals us to keep our eyes products and services that If the time is right, we hope on the far horizon. We seek to double Chinese passengers want to buy so to have industry agreement arrivals by FY16 and increase as to grow our retail business by the end of FY12 on a Indian arrivals 50% by FY14. revenue to $170 million pathway towards a dual Grow total earnings Base year FY10 arrivals: by FY13. runway and integrated We are committed to work China 101,000; India 26,000 Base year FY10 revenue: domestic and international together to try and unlock the terminal including a price Arrivals in FY11: $132 million potential value in our airport path to support this investment.