AIA – FY19 Annual Results

Media release | 22 August 2019

FY19 Annual Results: Delivering critical
infrastructure for the future

Auckland Airport today announced its financial results for the 12 months ended 30 June
2019.

Patrick Strange, Auckland Airport’s Chair, says: “It has been another year of growth
and we are pleased with the progress we have made on our 30-year vision to build an
airport of the future.

“We achieved several milestones in the 2019 financial year as part of our
infrastructure development programme, including work beginning on two of our eight
key anchor infrastructure projects – our airfield expansion and a major upgrade of the
inner core of our roading network. We also delivered strong results for our customers,
with the completion of significant transport projects and the multi-stage redevelopment
of the departure area at the International Terminal.”

Performance highlights include:
• Total number of passengers increased to 21.1 million, up 2.8% on the previous
year
• Operating EBITDAFI up by 9.6% to $554.8 million
• Total profit after tax down 19.5% to $523.5 million
• Underlying profit after tax was up 4.4% to $274.7 million
• Underlying earnings per share rose 3.6% to 22.8 cents
• Final dividend increased 2.3% to 11.25 cents per share

The financial year 2019 was another record year for traveller numbers at both
the International and Domestic Terminals, although growth was slower than in
recent years. Overall, passenger numbers increased to 21.1 million (up 2.8% on
the previous year), with international passenger numbers including transits
reaching 11.5 million (up 2.2% on the previous year). Domestic passenger
numbers reached 9.6 million (up 3.6% on the previous year).

The completion of the upgrade and expansion of Auckland Airport’s 36,000m
2

International Terminal departure area delivered meaningful improvements for
customers in the 2019 financial year, including upgraded bathroom facilities,
generous public seating areas, greater access to device charging stations and a
sophisticated new food and beverage experience. The response from
customers has been strong across our operation, with average Airport Service
Quality (ASQ) scores ranking above 4 out of 5 for both terminals throughout the
year – a 12-year high for Auckland Airport.

The growth in Auckland Airport’s investment property business was another
highlight for the 2019 financial year. Auckland Airport now owns and manages
one of New Zealand’s largest premium investment-grade portfolios, with an
estimated value of $1.7 billion and a committed rent roll of $100 million as at
June 2019.

Chief Executive Adrian Littlewood says Auckland Airport remains focused on the
delivery of long-term core aeronautical and non-aeronautical infrastructure
projects.

“In the financial year 2019, we delivered transport upgrades that have reduced
travel times, such as the completion of the Nixon Road bypass between State
Highways 20A and 20B and the Landing Road intersection upgrade, in partnership
with NZTA. We acknowledge the importance of safe and efficient transport options
for travellers to get to, from and around the airport and we are advocating on their
behalf and working closely with our government partners to deliver meaningful
improvements.

“In June 2019 we began our largest airfield project in decades – a 250,000m
2

pavement expansion to accommodate the number of aircraft expected by 2044,
flying an estimated 40 million travellers each year. As one of eight key anchor

projects to begin at Auckland Airport over the next decade, the development
includes new taxiways and remote stands for the parking and servicing of aircraft
– increasing the surface area of the airfield by 18%.

“We reached a milestone for another key anchor project in June 2019, with a
contract being awarded for the Northern Network. The project will expand the
roading network to the north of the existing terminals to improve traffic flows,
enable public transport and upgrade and strengthen underground utilities – all to
support the future terminal and runway developments.

“In the financial year 2019, we also continued to carry out works to upgrade the
existing Domestic Terminal to improve the experience for our customers while we
prioritise our plans for a new Domestic Jet Facility to be integrated into the
International Terminal.

“These transformational projects are just a few of more than 200 projects either
planned or underway at Auckland Airport, as part of a highly complex
infrastructure development programme being rolled out in one of our country’s
busiest development precincts.

“At Auckland Airport, we are harnessing new ways of working to create a strong
foundation to underpin this next phase of growth. In 2019, we embarked upon an
intensive programme of work to refine and enhance our investment plan for key
aeronautical infrastructure projects, with the objective of delivering planning
certainty, improved cost control and a realistic and achievable build programme.
Our airline customers have been at the heart of this process, to ensure we are as
closely aligned as possible as we shift into an unprecedented phase of
development.

“We are confident with the insights and progress we have made and continue to
develop our detailed roadmap ahead for the delivery of the next decade of key
projects. The additional time we have invested in these valuable formative stages
has led to lower capital expenditure than planned for the 2019 period, reaching
$284.1 million against the previous guidance of $280 million to $330 million.
However, we expect to finish the five-year pricing period (2017 – 2022) strongly
and broadly in line with the forecast released to the market in mid-2017, delivering
approximately the same value of commissioned or in-use aeronautical assets.

“We look forward to providing a more detailed update at our investor day in
November 2019.

“As always, our progress and achievements are thanks to the commitment and
dedication of our 730 full time and contracted staff, which have increased in
number by 40% since 2016. As Auckland Airport scales up its labour force to
ensure the delivery of key infrastructure assets, we are working hard to create a
diverse, flexible and modern environment where people want to work.

“We continue to share the benefits of our investment programme with our
neighbouring communities through ongoing creation of new employment and
education opportunities. Ara, our airport jobs and skills hub, has continued to play
a pivotal role in providing training and employment opportunities, placing 210
people in jobs in the 2019 financial year. The health and safety of our customers
also remained a top priority, and we were pleased to reduce our passenger injury
rate by 41.3% year on year.

“As we look to the 2020 financial year, we expect underlying profit after tax
(excluding any fair value changes and other one-off items) to again be between
$265 million and $275 million. As always, this guidance is subject to any material
adverse events, significant one-off expenses, non-cash fair value changes to
property and deterioration as a result of global market conditions, or other
unforeseeable circumstances.

“Auckland Airport is committed to growing New Zealand’s success in travel, trade
and tourism and we would like to take this opportunity to thank our community and
customers for their continued support and patience, as we work hard to build an
airport of the future.”

ENDS

For further information please contact:

Media:
Head of Communications and External Relations Libby Middlebrook
+64 21 989 908
libby.middlebrook@aucklandairport.co.nz

Investors:
Investor Relations Natalia Plamadeala
+64 9 255 9276
+64 27 381 8981
natalia.plamadeala@aucklandairport.co.nz

---

Annual Report 2019
Delivering
for the
future

AirfieldTerminal
123
NORTHERN
RUNWAY
NORTHERN
STANDS AND
TA XIWAYS
NEW CARGO
PRECINCT
Feasibility
Design
Constructing
Delivered
Transport
45
6
78
NEW
INTERNATIONAL
ARRIVALS
NEW DOMESTIC
JET FACILITY
DOMESTIC
TERMINAL
WORKS
PICK-UP /
DROP-OFF AND
MULTI-STOREY
CAR PARK 1
NORTHERN
NETWORK
Feasibility
Design
Constructing
Delivered
1
2
3
4
7
5
8
6
▼

Reference image only, actual design will vary
Focused
Auckland Airport has eight
core infrastructure projects
that will transform our precinct
and anchor our 30-year
vision to build an airport of
the future, improving the way
New Zealanders connect with
each other and the world.
In the financial year 2019 we
were pleased to commence
two of these projects – our
airfield expansion and the
Northern Network roading
project – while progressing
others from feasibility
through to design stage.
Anchor
projects
8
Feasibility/ Design
Constructing
Key
COVER IMAGE:
Sunshower Sculpture
by Eric Rieger aka HOT TEA
1
Annual Report 2019

Auckland Airport achieved an important milestone in the financial year
2019 – the completion of our multi-stage 36,000m
2
redevelopment
of the departure area in the International Terminal, which is providing
significant customer benefits.
a better,
faster, easier
travelling
experience
International departure
area upgrade
Delivering
Our investment property business
continued its strong track record of growth,
delivering new developments, including the
award-winning facility for DSV.
We built over 2,000 new car parks in the
2019 financial year to meet customer
demand, including new valet storage
spaces and provisioning for new electric
vehicle charging stations.
Ara, our airport jobs and skills
hub, placed 210 people in jobs
in the financial year 2019 and
shifted into new headquarters.
14
New food
and beverage
outlets
Increased choice for customers
Our award-winning new food and
beverage area offers customers
everything from Vietnamese, to
award – winning Italian, to authentic
Chinese dumplings, as well as popular
New Zealand high street brands,
such as Al Brown – Best Ugly Bagels,
Mexico and Better Burger.
To read more about our modern dining
and retail precinct, turn to page 17.
32
Annual Report 2019Annual Report 2019

to accommodate
projected growth
and improve
customer journeys
Planning
A new six-storey car park is planned
for the International Terminal, featuring
more than 3,000 car parks.
Auckland Airport’s hotel business
is expanding, with plans for a
new 146-room hotel – our fourth
on the precinct.
We continue to advance our plans for
a second runway to accommodate
the 40 million passengers that are
expected to arrive by 2044.
We are progressing our plans for a
new Domestic Jet Facility to provide
additional capacity and a significantly
improved customer experience.
Our plans for a 30,000m
2
expansion
and upgrade of the International
Terminal arrivals area are well
advanced, featuring a new arrivals
hall and expanded Biosecurity and
Customs processing to improve
peak time capacity.
Transport improvements continue to be a key focus for
Auckland Airport, as we work to enable public transport
and improve travel times in and around our precinct.
We are working in partnership
with New Zealand Transport
Agency (NZTA) and
Auckland Transport (AT)
on a range of projects,
as part of the Southwest
Gateway programme. When
completed, the programme
will deliver a new bus and
rail interchange at Puhunui
Station and a rapid transit
link to Auckland Airport.
54
Annual Report 2019Annual Report 2019

Building
improving
our roads and
expanding our
airfield and
property portfolio
Our largest airfield expansion since the 1970s is under
way, as we convert 250,000m
2
of land into new airfield
space at the western end of the airport. Adding more
than 18% surface area to the airfield, the project will
deliver new taxiways and six new remote stands.
Our largest roading project in
decades is under way, with the
upgrade and expansion of our inner
core roading system. The Northern
Network project will transform the
main entranceway into the airport
and enable public transport.
Construction has begun on the new
luxury Te Arikinui Pullman Auckland
Airport Hotel – a joint venture
between the airport and Tainui
Group Holdings. The 311-room
hotel will create 300 jobs during
construction and will then employ
200 people once the hotel is open.
We are working to deliver a new
operational air traffic control centre
for Airways, a resilient 1,420m
2

facility built to withstand significant
natural disasters.
Auckland Airport is building an 85,000m
2
facility for Foodstuffs, bringing
together the supermarket co-operative’s North Island operations in one
state-of-the-art purpose-built facility. Once complete, the building will be
New Zealand’s largest logistics centre.
16
7,000m
2
18
%
cranes to install
in surface
area added
to the airfield
of roofing in one lift
Artist impression
76
Annual Report 2019Annual Report 2019

It has been a positive year for Auckland
Airport, as we continued to deliver
strong results for our customers, local
community, New Zealand and investors.
We have made considerable progress
on our 30-year vision to build an
airport of the future, achieving several
milestones in the year to 30 June 2019
as part of our multi-billion-dollar
investment programme. This includes
the beginning of two core anchor
infrastructure projects, our most
significant since the 1970s, along with
the completion of our multi-stage
redevelopment of the International
Terminal departure area.
We are proud of the growing
contribution we are making to our
community, including the work we
are doing to connect local people with
opportunities through Ara, our airport
jobs and skills hub. In 2019 we were
once again recognised by Colmar
Brunton as one of New Zealand’s
most trusted companies, and we
are making meaningful progress on
reducing our carbon footprint as a
founding member of the New Zealand
Climate Leaders Coalition.
The financial year 2019 was another
year of passenger growth, although
it was slower than in recent years.
Overall, passenger numbers increased
to 21.1 million (up 2.8% on the previous
year), with international passenger
numbers, including transits, reaching
11.5 million (up 2.2% on the previous
year). Domestic passenger numbers
reached 9.6 million (up 3.6% on the
previous year).
Those who travel through our airport
continue to give us great feedback, and
in the financial year 2019 our combined
customer satisfaction rating for the
Domestic and International terminals
climbed to its highest annual score in
12 years – 4.15 out of 5.
Separately, the International Terminal
achieved a record score in the third
quarter, rating 4.36 out of 5. This followed
our focus on delivering meaningful
customer improvements in the financial
year 2019, including upgraded bathroom
facilities, generous public seating areas,
greater access to device charging
stations and a sophisticated new
food and beverage experience in the
international departure area. We were
delighted to see some of our work at the
International Terminal recognised in a
prestigious global award in 2019, with
Auckland Airport winning the ‘Airport
Food & Beverage Offer of the Year’ at
the International Airport Food & Beverage
Awards. The health and safety of our
customers also remained a top priority,
and we were pleased to reduce our
passenger injury rate by 41.3% year
on year across our operation.
The growth in our investment property
business was another highlight. Auckland
Airport now owns and manages one
of New Zealand’s largest premium
investment-grade portfolios, with an
estimated value of $1.7 billion and a
committed rent roll of $100 million as
at June 2019.
As always, our progress and
achievements are thanks to the
commitment and dedication of
our staff and contractors and their
enduring focus on doing the very
best for our customers.
In the financial year 2019, we delivered
transport upgrades that have reduced
travel times, such as the completion of
the Nixon Road bypass and the Landing
Road intersection upgrade, in partnership
with NZTA. We acknowledge the
importance of safe and efficient transport
options for travellers to get to, from and
around the airport and we are advocating
on their behalf and working closely with
our government partners to deliver
meaningful improvements.
In June 2019 we began our largest,
airfield project in decades – a 250,000m
2

pavement expansion to accommodate
the number of aircraft expected by 2044,
flying an estimated 40 million travellers
each year. As one of eight key anchor
projects planned for Auckland Airport,
the development includes new taxiways
and remote stands for the parking and
servicing of aircraft – increasing the
surface area of the airfield by 18%.
We reached a milestone for another key
anchor project in June 2019, with a
contract being awarded for the Northern
Network. The project will expand the
roading network to the north of the
existing terminals to improve traffic flows,
enable public transport and upgrade and
strengthen underground utilities – all to
support future terminal and runway
developments.
In the financial year 2019, we also
continued to carry out works to upgrade
the existing Domestic Terminal to improve
the experience for our customers while
we prioritise our plans for a new Domestic
Jet Facility to be integrated into the
International Terminal.
These transformational projects are just
a few of more than 200 projects either
planned or underway at Auckland Airport,
as part of a highly complex infrastructure
development programme being rolled out
in one of our country’s busiest
development precincts.
At Auckland Airport, we are harnessing
new ways of working to create a strong
foundation to underpin this next phase
of growth. In 2019, we embarked upon
an intensive programme of work to refine
and enhance our investment plan for
key aeronautical infrastructure projects.
Leveraging agile methodology, we are
bringing together diverse teams and
Nau mai and welcome to
Auckland Airport’s 2019
annual report for the 2019
financial year.
Adrian Littlewood
Chief Executive
Five-year average
annual shareholder return
22.6%
Consistent returns
over period of
significant change
Leveraging agile
methodology, we are
bringing together
diverse teams and
evolving our way of
working with the
objective of delivering
planning certainty,
improved cost control
and a realistic and
achievable build
programme.”
Nau mai
& welcome
Patrick Strange
Chair
98
Annual Report 2019Annual Report 2019

evolving our way of working, with the
objective of delivering planning certainty,
improved cost control and a realistic and
achievable build programme. Our airline
customers have been at the heart of
this process, to ensure we are as
closely aligned as possible as we shift
into a major phase of development.
We are confident with the insights and
progress we have made and continue to
develop our detailed roadmap ahead for
the delivery of the next decade of key
projects. We look forward to providing
a more detailed update at our investor
day in November 2019.
The additional time we have invested
in these valuable formative stages has
led to lower capital expenditure than
planned for the 2019 period – reaching
$284.1 million against the previous
guidance of $280 million to $330 million.
However, we expect to finish the five-year
pricing period (2017 – 2022) strongly
and broadly in line with the forecast
released to the market in mid-2017,
delivering approximately the same
value of commissioned or in-use
aeronautical assets.
We look forward to the changes
ahead and the future benefits that
will undoubtedly flow through to
our customers.
Auckland Airport had a solid year from
a financial perspective, with revenue up
8.7% to $743.4 million, while earnings
before interest expense, taxation,
depreciation, fair value adjustments and
investments in associates (EBITDAFI)
increased 9.6% to $554.8 million.
The directors and management of Auckland
Airport understand the importance of reported
profits meeting accounting standards. However,
owing to the complexity of accounting standards,
it may be difficult for investors to compare one
financial year’s results with another. Therefore,
we also provide an underlying profit measure
to help investors compare profits between years
and to make comparisons between different
companies with confidence. We believe that an
underlying profit measure can assist investors
to understand what is happening in a business
such as Auckland Airport, where revaluation
changes can distort short-term financial results
or where one-off transactions, both positive and
negative, can occur.
For several years, Auckland Airport has referred
to underlying profit alongside reported results.
We do so not only when we report our results
but also when we give our market guidance
(where we exclude fair value changes and other
one-off items) or when we consider dividends
and our policy to pay 100% of underlying net
profit after tax, excluding unrealised gain and
losses arising from revaluation of property or
treasury instruments and other one-off items.
However, in referring to underlying profits, we
acknowledge our obligation to show investors
how such results have been derived. The
reconciliation for the current period can be
found on page 33.
Total profit after tax was down 19.5%
to $523.5 million, due to the previous
year including the $297.4 million gain
on the sale of our investment in North
Queensland Airports. Underlying net profit
was up 4.4% to $274.7 million and our
underlying earnings per share was up
3.6% to 22.8 cents for the 2019 financial
year. Our final dividend is 11.25 cents
per share. The dividend reinvestment plan
will again be available for the final 2019
dividend at a 2.5% discount to the market
share price.
As we look to the 2020 financial year,
we expect underlying profit after tax
(excluding any fair value changes and
other one-off items) to again be between
$265 million and $275 million. This
guidance is in line with the guidance
for the previous year, reflecting several
factors, including moderating passenger
growth, the impact of the discounts
announced in February this year to our
previously published aeronautical prices,
modest operating expense growth, along
with an increased depreciation expense
associated with the step up in our
infrastructure build. As always, this
guidance is subject to any material
adverse events, significant one-off
expenses, non-cash fair value changes
to property and deterioration, as a result
of global market conditions or other
unforeseeable circumstances.
Auckland Airport is committed to growing
New Zealand’s success in travel, trade
and tourism and we would like to take this
opportunity to thank our community and
customers for their continued support
and patience as we work hard to build
an airport of the future.

Patrick Strange
Chair
Adrian Littlewood
Chief Executive
Underlying net profit
$ 274.7m
4.4%
REGULATORY AND
PRICING UPDATE
Following a review of our aeronautical
prices that were set in 2017, the
Commerce Commission concluded
our target return was not fully justified.
Auckland Airport carefully considered
the Commission’s feedback and in
February this year we announced a
reduction in our aeronautical target
return from 6.99% to 6.62%, to be
implemented by way of discounts
on landing and passenger charges
effective 1 July 2019. In our view,
the earlier prices we set for airlines
were fair, competitive and in line
with international standards,
however, we acknowledged the
Commission reached a different
view on target return.
In March 2019, the Commerce
Commission recognised Auckland
Airport’s willingness to engage and
respond positively to its feedback,
welcoming Auckland Airport’s decision
to reduce its charges to airlines by
$33 million over the current five-year
pricing period (2018 – 2022 financial
years), the equivalent of $0.50 per
passenger per flight. It noted that
Auckland Airport’s decision to revise
its pricing was a good result for
consumers and showed the benefits
of the current information disclosure
regulations that are applied to
New Zealand’s major airports.
We look forward to
the changes ahead
and the future
benefits that will
undoubtedly flow
through to our
customers.”
1110
Annual Report 2019Annual Report 2019

Giving back
to our local
communities,
Auckland and
New Zealand.
Revenue
$743.4m
8.7%
Domestic
9.6m
3.6%
International
10.5m
3.0%
International transits
1.0m
4.9%
Operating
EBITDAFI
$554.8m
9.6%
Total profit
$523.5m
19.5%
Underlying profit
$ 274.7m
4.4%
Dividend per share
22.25 cents
2.3%
Underlying earnings
per share
22.8 cents
3.6%
Capex investment
$ 2 8 4 .1m
29.9%
Five-year average annual
shareholder return
22.6%
21.1m
Passengers
2019
highlights
Key
statistics
$583,907
$345,781
Invested in our local communities (including $345,781
to the Auckland Airport Community Trust and $238,126
through other Auckland Airport grant programmes)
Granted to community projects by the Auckland Airport
Community Trust to support learning, literacy and life
skills in South Auckland

2.8%
Health & safety
6.8%
Reporting of safety observations
and hazards
2.2%
Employee recordable injury rate
41.3%
Passenger incident rate
Ara – our airport
jobs and skills hub
784
Training opportunities
696
Participants engaged in training
210
Total job placements
175
South Aucklanders placed in jobs
77
Students on work experience
(2018 calendar year)
Diversity
40%
Percentage of female employees
33%
Female senior managers
45
Recorded ethnicities – noting
that not everyone who works
at Auckland Airport discloses
their ethnicity
Environmental
impact reductions
*
18%
Energy use
per passenger
46%
Waste to landfill
per passenger
33%
Carbon emissions per m
2
Our science-based target:
Interim

11.00¢
▲
2.3%
Final
11.25¢
▲
2.3%
* All environmental impact figures
are in relation to our 2012 baseline
* Our science-based target: 45% per
m
2
reduction in carbon emissions
by 2025 from our 2012 baseline
1312
Annual Report 2019Annual Report 2019

Faster,
Higher,
Stronger
Faster,
Higher,
Stronger
Faster,

Higher,
Stronger
In May 2018, the Board endorsed a
continuation of our five-year Faster,
Higher Stronger strategy for the next
four-year period through to 2022. This
strategy is centred around creating the
airport of the future and is anchored on
our ambition to ‘make journeys better’ for
all customers and partners of Auckland
Airport. The strategy continues to unfold
amid a number of changes in the industry,
including evolving aviation and tourism
markets, high immigration, along with the
delivery of complex development projects.
We’re growing
travel and
trade markets
We have an ambitious and
innovative approach to
helping New Zealand
sustainably unlock growth
opportunities in travel, trade
and tourism. Growing travel
markets with our airline and
industry partners makes
journeys better by providing
customers with greater
choice and delivering more
convenient flight schedules
and by offering better value for
money for all customers and
partners of Auckland Airport.
In addition, new airline routes
help to grow trade activity by
creating more opportunities
for businesses to connect
with their key customers in
global markets.
We’re
strengthening our
consumer business
We are strengthening and
extending our retail, transport
and accommodation
businesses to ensure we can
respond to evolving customer
needs. This means we are
increasing the range of
products and services we
provide and making Auckland
Airport more appealing to our
customers – thereby making
their journeys better.
We’re investing
for future
growth
We are building on our strong
foundations for long-term,
sustainable growth by
investing in the infrastructure
required to meet long-term
customer needs. This makes
journeys better both within the
airport and around our vibrant
business district.
Faster, Higher, Stronger embraces our
objective of making journeys better and
is a commitment to making improvements
in everything we do. In late 2013, the
strategy set a number of new aspirations
to drive our company’s performance.
These high-level aspirations and our
progress to date are not market guidance
and the results are likely to fluctuate from
year to year. However, they provide the
company with a sharp focus on important
goals that underpin our long-term success.
By 2019, we had achieved almost all of our
aspirations – as set out in the table below.
We’re being fast,
efficient and
effective
We are improving our
performance by increasing
the efficiency and productivity
of our assets, processes,
operations and balance sheet.
A fast, efficient and effective
airport makes journeys better
by saving time and money for
airlines and travellers.
Reach 20 million total passengers by FY20,
up from 14.5 million in FY13
An increase of 0.6 million in FY19
20m21.1m
How we tracked in FY19:
Aspirations:
Double Chinese arrivals to 400,000 by
FY17, up from 213,781 in FY13
A decrease of 8.7% in FY19
400,000360,805
Achieve 10 million international passengers
by FY18, up from 7.3 million in FY13
An increase of 0.3 million in FY19
10m11.5m
Build property rent roll to $60 million by
FY17, up from $44 million in FY13
An increase of $9.8 million in FY19
$60.0m$100.0m
Reflecting that Auckland Airport has achieved and surpassed almost all of the
aspirations set back in 2013, new medium-term aspirations are in development and
we intend to socialise these at our investor day scheduled for November 2019.
1514
Annual Report 2019Annual Report 2019

As Auckland Airport
continues to grow
New Zealand’s flight
connections to the world,
we are striving to deliver a
world-class experience for
every customer who
passes through our doors.
From improving processes for travellers,
to online shopping, we are investing
significant time and resources to deliver
improvements across every aspect of
the customer journey to ensure we meet
the expectations of travellers and deliver
a great experience.
During the 2019 financial year,
we achieved a significant milestone:
the completion of our expanded
departures area in the International
Terminal – a 36,000m
2
upgrade to
the aviation security screening area
and retail precinct providing a
sophisticated new retail high
street and a modern food and
beverage area.
For passengersFor airlines
Working for
customers,
enhancing
their journeys
The development features a wide
range of customer experience
improvements, including:
• upgraded and oversized bathroom
facilities, a dedicated ‘recompose area’
post security for customers to repack
and get organised, numerous new
charging points to power devices,
as well as two hours free Wi-Fi for
all visitors and extended hours for
members of our loyalty programme,
Strata Club;
• contemporary Ma ̄ ori design and
illustration by award-winning artist
Dr Johnson Witihera, featured in
digital panels through to carved details
on columns, doorways and pillars;
• 14 new food and beverage outlets
offering everything from Vietnamese,
to award-winning Italian and authentic
Chinese dumplings, as well as popular
New Zealand high-street brands such
as Al Brown – Best Ugly Bagels,
Mexico and Better Burger; and
• in total, 32 new retail concepts opened
in the financial year 2019, showcasing
the best of New Zealand including
Icebreaker merino clothing to Manuka
honey, Whittaker’s Chocolate and an
All Blacks Adidas outlet. Luxury
international brands include Kate
Spade, Weekend Max Mara and
Michael Kors – the first time these
stores have opened in New Zealand.
Delivering
The international departures development,
which also features sculptured godwits
and kahawai fish created by Weta
Workshop, has been recognised in
several awards, including from the
NZ Institute of Architects, the NZ Property
Council and the Moodie Davitt Report
Airport Food & Beverage Awards,
winning the F&B Offer of the Year
Award in June 2019.
Auckland Airport looks forward to
embarking upon another significant
expansion of the International Terminal
in the year 2020 – with the 30,000m
2

upgrade of the arrivals area. The project’s
physical works are currently scheduled
to begin in January 2020, featuring a new
arrivals hall and expanded Biosecurity
New Zealand and New Zealand Customs
processing and queue areas to improve
peak-time capacity.
It was another record year for traveller
numbers at both our International and
Domestic terminals. Over the 2019
financial year, an average of 31,555
travellers arrived or departed each day
from the International terminal, up 2.2%
on the previous year. At the Domestic
Terminal, an average of 26,284 travellers
arrived or departed each day, up 3.6%
year on year.
36,000
m
2
14
32
expanded departure
area – International
Terminal
new food and
beverage outlets
new retail concepts,
from local to
international brands
Delivered
1716
Annual Report 2019Annual Report 2019

The response from our customers to
the new expanded environment has
been very positive with sustained overall
customer satisfaction scores ranking
above 4 out of 5 for both terminals in all
four quarters of the year, a 12-year high
for Auckland Airport. During the third
quarter of the financial year, following
the completion of improvements to retail,
food and beverage and dwell spaces in
departures, our customer satisfaction
rating at the International Terminal
improved to its highest point in 12 years
– 4.36 out of 5. This placed Auckland
Airport third out of a comparative
international peer group of 24 airports,
selected on the basis of size, passenger
volumes, routes and ownership structure
by Airport Service Quality (ASQ), a global
benchmarking programme for airport
customer service.
Beyond the expansion of our International
Terminal, Auckland Airport has continued
to focus on additional operational and
customer service improvements
throughout the precinct.
In the financial year 2019, Auckland
Airport’s Service Delivery team carried out
research and embarked upon a customer
service transformation to ensure we
provide a relaxing and enjoyable
experience for our customers. We have
developed a customer service promise
and guiding principles to enhance service
levels throughout the customer journey.
Over the coming months, as we train our
staff on the new principles and service
standards, we are confident that our
customers will see the benefits when
travelling through.
As we shift into a new phase of significant
construction works to create an airport of
the future, we are also building a strong,
collaborative community of contractors
and stakeholders to ensure we keep our
customers safe.
In the financial year 2019, we established
a Common User Safety Protocol (CUSP)
with many of our partners (airlines, border
agencies, security partners and ground
handlers). The CUSP, signed by our CEO
and other senior executives, is a joint
commitment by businesses operating
around the airport precinct to provide the
safest working environment possible in
common-use areas in and around the
terminals. We also reallocated staff
resourcing to high-accident areas,
helping to reduce our passenger injury
rate by 41.3%.
Other customer improvements included:
• 4,000 new braked baggage trolleys
across Domestic and International
terminals. The new trolleys are an
upgrade in safety, design and
functionality being 10kg lighter and
able to handle loads up to 300kg;
AIRPORT STORE
OF THE FUTURE
AIAL & BIOSECURITY NZ
As the world becomes increasingly
digital, Auckland Airport has been
working hard behind the scenes to
develop innovative online shopping
platforms for our customers.
Auckland Airport was one of the
first airports in the world to launch
an online multi-retailer shopping
marketplace called The Mall,
enabling international travellers
to shop at multiple retailers via
a single online check out, with
a click and collect service.
In June 2019, we marked the
one-year anniversary of The Mall,
which now offers over 4,500 duty
and tax-free products across
10 categories, including over
375 leading New Zealand and
international brands. The platform
has been well received by
international travellers, with orders
growing 20% month on month
throughout the 2019 period and
earning a customer satisfaction
score of 89%.
In February 2019, we also launched
a WeChat mini-store specifically for
Chinese customers travelling
through Auckland Airport.
Customers now have available to
them more than 700 items from
across eight different categories
within the WeChat app and select
whether they would like to collect
their order as they arrive or depart
from Auckland Airport.
Greater collaboration between
Auckland Airport and Biosecurity
New Zealand has continued to
deliver an improved experience for
customers in the financial year 2019,
resulting in faster processing times
for travellers.
Over the past three years, our two
organisations have worked closely
together to enhance biosecurity
screening and provide a more
seamless experience for travellers
during busy periods, particularly
during the northern winter/summer
peak. By sharing data unique to
each organisation, the partnership
has been able to simulate and test
scenarios involving high traveller
numbers, allowing for improved
future resource planning.
Auckland Airport and Biosecurity
New Zealand also worked together
to simplify the way travellers move
through biosecurity screening,
reducing the number of lanes from
three to two and removing the option
for people to move through
biosecurity differently, depending
on their nationality.
These changes resulted in a more
streamlined customer journey
through the international arrivals area
during 2018 and 2019 and reduced
overall processing times by 10.5%,
while preserving border security
standards. We are proud of these
gains and it demonstrates what
a close working relationship can
achieve when there is a common
goal. We look forward to working
with Biosecurity New Zealand in
the year ahead, as we begin our
30,000m
2
upgrade of the arrivals
hall, including an expansion of
Biosecurity New Zealand’s area.
• four additional AviRamps purchased,
providing travelling guests with a
safer, more comfortable and faster
disembarkation experience;
• around 70% of customers now
using self-service kiosks to start their
journey. In the financial year 2019, we
doubled the number of self-service
kiosks to 120, reducing average
check-in and bag drop times from
20 minutes to 8.5 minutes; and
• ongoing works at the Domestic
Terminal to provide additional space
for aviation security screening,
a reconfiguration of the food court
area, as well as a new retail offering.
Strata Lounge at the International Terminal
continues to be a popular choice for the
travelling public, with 230,189 guests
in the 2019 financial year, up 49% on the
previous year. We are looking to introduce
a Strata Lounge into the Domestic
Terminal in the 2020 financial year,
with construction already under way.
Forging stronger
relationships to drive
customer experience
improvements
4,500+
87%
products across 10 categories,
including over 375 leading
New Zealand and international brands
increase in
Strata Club
memberships
Our online community is going from
strength to strength, as we have
continued to invest in our digital channels
to provide useful information, convenient
retail experiences and to recognise and
reward regular travellers. Highlights for
2019 included:
• We outperformed our target for new
Strata Club memberships, increasing
87% during the period; and
• The Auckland Airport app had a 9.9%
increase in travellers using the app,
and an increase of 69.2% in parking
bookings via the app, while new
features were added, such as real-time
queue wait time information.
Auckland Airport is proud to have been
recognised as one of Colmar Brunton’s
top 10 most trusted New Zealand
companies for the third year running.
Being a reputable New Zealand business
is important to us and we are proud
to be trusted by customers and
our stakeholders.
Photo credit: Biosecurity NZ
1918
Annual Report 2019Annual Report 2019

Auckland Airport is the guardian of
one of New Zealand’s most important
transport hubs and we are working
hard to build for the future, delivering
long-term improvements to the
transport network for our customers.
In the 2019 financial year, we completed
a number of significant projects and
progressed others through to design and
construction, greatly improving access
and travel times for people travelling to,
from and around the airport.
In November 2018, we completed the
new Nixon Road extension – a 920m
stretch of road providing a direct link from
north (SH20A) to south (SH20B), enabling
motorists to bypass the busy main
intersection at George Bolt Memorial
Drive and Tom Pearce Drive. In the six
months to June 2019, the connection
helped to remove 50,000 heavy vehicle
transit movements from the core airport
roading network, helping to improve flows
and travel times for terminal-bound traffic.
Currently, of all vehicles transiting through
the precinct, 27% of them are heavy
vehicles using Nixon Road.
Auckland Airport built over 2,000 new
car parks in the 2019 financial year to
meet customer demand, including 500
valet storage spaces (open in July 2019)
and a new system to guide customers
to available spaces. At the same time,
we provisioned for 20 electric vehicle
charging stations, to complement the
existing electric charging stations we
have at the Domestic Terminal and at
our valet storage area.
During the peak 2018/2019 summer
period, we introduced a range of initiatives
to ensure a well-functioning transport
network. These included a new ‘drop and
ride’ service away from terminal buildings
to reduce forecourt traffic and a travel
reward promotion to encourage airport
precinct workers to use public transport.
In the year ahead, we will continue our
programme of work to create a resilient
transport network, ensuring consistent,
reliable journeys for people travelling to,
from and around Auckland Airport.
In June 2019, a contract was awarded
for the Northern Network project – our
largest roading infrastructure upgrade
since the airport was first built. The
project will deliver a range of
benefits, including:
• widening George Bolt Memorial Drive
to add high-occupancy vehicle lanes;
• the construction of Altitude Drive which
will provide additional roading capacity,
allowing terminal bound traffic greater
journey time reliability;
• a new one-way loop road for traffic
exiting the International Terminal;
• enhanced pedestrian and shared
pathway links along George Bolt
Memorial Drive connecting to the
wider airport precinct; and
• upgrading and installing new
underground utilities to create a
resilient, future-proofed network able
to support the wider terminal and
runway developments.
Auckland Airport is continuing to work
closely with New Zealand Transport
Agency (NZTA) and Auckland Transport
(AT) to coordinate network operations
and improve access to and from the
airport, benefitting workers, travellers
and freight movements.
In collaboration with NZTA and AT, the
first stage of the Southwest Gateway
programme will begin in late 2019 and
is due to be completed in 2021 with the
following benefits:
• A new rapid transit link between
Auckland Airport and Puhinui Station,
including widening SH20B to provide
two new priority lanes for bus and
high-occupancy vehicles;
• A new bus and rail interchange at
Puhinui Station, allowing quick travel
to and from the airport;
• Fast and convenient 10-minute
bus services to run between
Puhinui Station interchange and
the Airport; and
• A shared-use path providing improved
walking and cycling opportunities
along SH20B.
NORTHERN
RUNWAY
In December 2018, following a public
hearing process, Auckland Council
released its recommendations on
the notices of requirement to enable
the construction and operation
of the northern runway. Auckland
Airport largely accepted these
recommendations, however a number
of appeals have since been lodged
with the Environment Court. Resolution
of these appeals will be a significant
milestone, allowing us to progress
the next phase of detailed planning
and design for the second runway. In
the meantime, we continue our work
on design and construction planning.
We are in deep consultation with our
airline customers regarding the timing.
Plans are also well advanced for a
new six-storey car park to be built
at the International Terminal, with
construction expected to begin in early
2021. The development will include
3,000 car parks, including rental bays,
electric vehicle charging stations, valet
products and self-parking facilities and
is expected to be complete in 2023.
Construction of a new southwest
Park and Ride facility off SH20B is
also expected to begin in 2020, with
stage 1 of the project providing circa
2,000 new car parks.
AIRFIELD EXPANSION
The financial year 2019 also
marked the beginning of our
largest airfield expansion since
the 1970s and the next phase of
our infrastructure development
programme. Over the next three
years, more than 250,000m
2
of
land or about 30 rugby fields will
be converted into new airfield at
the western end of the airport,
delivering an additional taxiway,
extension of an existing taxiway
and development of six stands
for the parking and servicing
of aircraft.
The project will add more than
18% surface area to the airfield
pavement, improving aircraft
movement and eventually linking
to the future second runway.
30
An area of about
30 rugby fields will be
converted into new airfield at
the western end of the airport
Our largest airfield
expansion since
the 1970s
Parking planning
A new six storey car park is to be built at
the International Terminal, featuring 3,000
car parks and rental bays, valet products
and self-parking facilities. Construction is
expected to begin in early 2021.
Transport
Consistent,
reliable journeys
2120
Annual Report 2019Annual Report 2019

Over the next two decades, Auckland
Airport will deliver an infrastructure
development programme that will
transform our precinct and upgrade a
number of key legacy assets, including
the International and Domestic terminals,
expansion of our airfield and substantial
changes to the roading network.
To manage the scale and complexity of
the work ahead, we have embarked on a
digital transformation journey to enhance
our building programme and the way we
manage our assets over their lifecycles,
from early design through to end of life.
Over the past two years, Auckland Airport
has trialled and adopted integrated
Building Information Modeling (BIM) and
Geographical Information Systems (GIS)
software – leading-edge design
technologies that have allowed us
to start creating digital 3D replicas
of our airport assets.
Blending geospatial and engineering,
architecture and construction data, the
technology enables designers to work
together throughout every phase of a
project. It provides a complete picture
of an asset, from its nuts and bolts to
its steel framework, helping project teams
to streamline processes and resolve
complex construction challenges prior
to building works beginning.
We initially trialled the technology for
the 36,000m
2
redevelopment of the
airside departure and dwell area of the
International Terminal, and due to its
success, we adopted the technology
in full for the development of new gates
located at Pier B at the northern end
of the airfield. The initial challenge was
to map the structure of the existing
International Terminal, which involved the
collation of existing 3D models, along with
ground-based 3D laser scanning, to
create a sophisticated replica. Designers
and builders also contributed, modelling
construction elements in detail, allowing
the team involved to collaborate and
analyse any issues in a digital world,
without even having to leave their offices.
With more than 200 projects planned over
the next two decades, Auckland Airport
has also used the technology to create
a complex model of future construction
projects at the airport precinct, called
the ‘Capital Works Master Schedule’.
The model is used to visualise complex
sets of data in an easily understood
manner. By linking 3D models to a time
schedule and project costings, the team
is now better able to assess workflow
planning, logistics and other aspects
of the construction process.
Leading the way
in infrastructure
planning and design
Building a digital world
Members of our Airport Development and Delivery
team Brian Rae (left) and Karl Fitzpatrick work on a
3D model of the International Terminal.
Delivering
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Building
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Building
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Building
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Building
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Building
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2322
Annual Report 2019Annual Report 2019

Tourism is one of New Zealand’s most
important industries and for good
reason. The sector employs at least
8% of New Zealand’s workforce and
directly contributes $15.9 billion to
GDP* – making it New Zealand’s most
valuable export earner.
Auckland Airport is committed to ensuring
our tourism industry continues to flourish.
We are working to support our tourism
partners and airlines to attract high-value
visitors from a diverse range of markets.
As New Zealand’s gateway, we are also
playing a leading role in connecting New
Zealand to the world by developing a
strong, sustainable and thriving
aeronautical network.
Driving demand
in offshore markets
In the financial year 2019, Auckland
Airport, continued to work alongside our
partners investing in emerging and more
established markets to drive growth and
support airlines to operate sustainable
air routes. The aviation market remains
dynamic and we are focused on building
a diverse network to build resilience.
In the China market, our focus was
on supporting airline partners with
e-commerce, travel trade distribution
and public relations activity, to attract
higher-value independent Chinese
travellers to New Zealand. In Australia,
we continued to work alongside airline
partners, Tourism New Zealand and
regional tourism organisations, such as
ATEED to encourage Australians to visit
Auckland and the Central North Island
all year round. In the United States, we
focused our efforts on growing visitation
from the eastern states of America.
We recognise the potential of other
promising markets, such as India, where
we appointed a representative in the
financial year 2019 to grow our interests
there. We also continue to work with
partners in South Korea, Taiwan and
Indonesia to develop these markets.
Working for New Zealand
Auckland Airport continued to work
closely with industry partners over the
period, sharing insights and analysis
to help inform decision-making. This
included supporting the development of
the Government’s tourism policy, as well
as a new industry strategy for the Tourism
Industry Association: ‘Tourism 2025 and
Beyond’. In the 2019 financial year, we
also extended our support of tourism
product innovation through our partnership
with Eat NZ, and we participated in
the development of a new tourism
management strategy for Auckland –
‘Destination AKL 2025’.
Supporting
sustainable
growth and
high-value
tourism
AUCKLAND
AUCKLAND
AUCKLAND
AUCKLAND
SEOUL
VANCOUVER
TAIPEI
CHICAGO
New non-stop flights
commencing
November 2019 to
Seoul to add 105,000
seats and grow
inbound leisure
tourism
New Vancouver route
commencing
December 2019 to
add 31,000 seats and
contribute $38 million
annually to the New
Zealand economy
Additional 95,000
seats per annum
commenced November
2018, increasing
trade opportunities
in horticulture
and agriculture
New service delivering
85,0000 seats per
annum commenced
November 2018,
opening up new
regions of North
America to non-stop
flights to New Zealand
IN FOCUS: SUSTAINABLE
TOURISM GROWTH
In the last year, over 21 million
travellers passed through Auckland
Airport – a number which is
expected to double by 2044.
The growth in tourism numbers
will provide enormous benefits
to New Zealand economically
but at the same time it will
also create challenges from
a sustainability perspective.
Auckland Airport believes the
tourism industry needs to better
understand and manage the
industry’s impact, to ensure it
can continue to successfully grow
without undermining sustainability
and to continue to hold its social
license to operate amongst
New Zealanders. Otherwise we
risk losing the support of our
local communities, impacting our
environment and visitor experience.
Auckland Airport is playing a
leading role in discussions around
the future sustainability of the
tourism industry, funding research
that has proposed a new industry
framework called the Sustainable
Tourism Growth Monitor (STGM).
The monitor suggests a broad
framework for the tourism industry
to measure itself on a range of
factors, including infrastructure,
congestion, the environment and
community wellbeing.
We believe there is an opportunity
for the industry to work together
to extend this research to create
a robust STGM for the future.
We are committed to collaborating
with government and members of
the tourism industry in the 2020 year
to build on this work.
Unlocking new routes and capacity
Auckland Airport has experienced
significant growth over the past four
years, increasing from 19 airlines in 2015
to 29 airlines as at 30 June 2019. We
welcomed announcements and capacity
changes from a range of airlines over the
2019 financial year, including:
• the introduction of a new direct
route from Auckland to Seoul by Air
New Zealand that will add 105,000
seats and 4,855 tonnes of cargo per
year, commencing in November 2019;
• new flights between Auckland
and Vancouver to be operated by
Air Canada from December 2019,
adding 31,000 seats per year and
650 tonnes of cargo;
• the introduction of a third daily
Auckland to Singapore flight from
October 2018 by Air New Zealand/
Singapore Airlines; and
• in November 2018, Air New Zealand
commencing new direct routes from
Auckland to Chicago and Auckland
to Taipei.
These and a range of other flight changes
across our airline partners resulted in
685,000 net additional seats per annum
and an estimated 60,800 net tonnes of
additional international cargo capacity in
the financial year 2019.
While our outlook for the 2020 financial
year remains solid, our strong trend of
capacity growth has slowed in recent
times due to airlines adjusting their
business strategies, reducing capacity
and softening demand for travel to
New Zealand in some visitor source
markets, such as Australia, China and
Japan. Hong Kong Airlines and AirAsia
discontinued their New Zealand services
in the year to 30 June 2019 and, from
October 2019, LATAM Airlines will reduce
its Santiago (via Auckland) to Sydney
flights, from a daily service to four times
a week. This change will coincide with
LATAM commencing non-stop Santiago
to Sydney services.
ACROSS OUR
AIRLINE PARTNERS
685,000
60,800
additional seats per annum
tonnes of additional
international cargo capacity
Eat NZ
To u r i s m
* Gross Domestic Product
2524
Annual Report 2019Annual Report 2019

The 2019 financial year was a record
year for Auckland Airport’s investment
property business, which now owns
and manages one of New Zealand’s
largest investment-grade portfolios.
Our rent roll has increased 10.9%
to $100 million, the portfolio value
now exceeds $1.7 billion and our
weighted average lease term is sitting
at 9.38 years – one of the longest in
New Zealand’s listed property sector.
Growth continues to be underpinned by
strong development activity. During the
2019 financial year, new development
projects were completed for EBOS and
DSV Logistics, while 13 hectares of land
was prepared and added to our
development-ready reserves. The quality
of our delivery model has also been
recognised in both the property and
architectural sectors. In 2019, we were
awarded the Property Council’s Property
Team of the Year Award for urban
planning at The Landing Business Park,
the NZ Institute of Architects’ Commercial
Award for the Rohlig Logistics
development and the DSV development
was awarded Excellence and Best in
Category at the 2019 Property Council
Industry Awards.
The development outlook remains strong.
Currently, we have more than $515 million
of pre-committed investment assets under
construction, including the 85,000m
2

office and warehouse complex for
Foodstuffs, a new office and control
centre for Airways Corporation, plus
standalone developments for Thrifty,
Europcar, and ASX-listed Bapcor. We
have also maintained our speculative
building programme, with 11,000m
2

of new facilities under construction in
Timberly Place.
Our investment programme also includes
the expansion of our hotel portfolio.
Construction of the 5-star Pullman
Auckland Airport Hotel, located adjacent
to the International Terminal, has
commenced and is our second project
in partnership with Tainui Group Holdings.
This is expected to complete in 2022.
A fourth hotel, comprising a 146-room
mid-tier hotel located within the Quad
Office Campus, is also under way and
this is expected to complete in Q4 2020.
Auckland Airport already operates two
hotels inside the precinct: the Novotel
Tainui Auckland Airport Hotel and the
ibis Budget Auckland Airport. When the
Pullman and our fourth hotel are open,
it will make Auckland Airport one of the
largest hotel operators (by number of
rooms) in New Zealand.
Portfolio
$1.7b
Investments under construction
$ 515m
Weighted Average Lease Term
9.38
years
An employer of choice
Auckland Airport employs more than 730
full-time and contracted staff, and we are
proud of our diverse work force and our
long-term commitment to their safety and
wellbeing. Our workforce has grown by
more than 40% over the last three years,
and we are working hard to create an
environment where people want to work,
providing new opportunities to develop,
support and empower them. As our
workforce continues to grow to drive our
infrastructure programme, we also
recognise that work-life balance is good
for our people and we are reshaping our
practices to meet the needs of a flexible
modern workplace.
In the year to 30 June 2019, we
introduced a new Parental Leave Policy,
offering parents greater financial support
and flexibility through a wide range of
key benefits.
These include two weeks’ extra paid
leave for the partner of a primary caregiver
and up to 10 days paid special leave
for a mother during pregnancy, allowing
her time to attend special appointments,
such as scans and antenatal classes.
Outstanding year
for investment
property

In addition to the existing government-
funded paid parental leave, we are also
offering primary caregivers 80% of their
base salary for a period of 18 weeks
during their parental leave, as well as
personal coaching before they return to
work to help make the transition back as
smooth as possible. Another key priority
has been to ensure we are operating
within a fair and equitable remuneration
framework. Our talented workforce
includes 45 ethnicities, and we believe
the diversity of our people is one of our
strengths. In the financial year 2019, we
increased female representation in key
positions across the business, including
at Board level (38% to 50% increase year
on year) and in our leadership team
(12.5% to 22% increase year on year).
Overall, the number of female senior
managers across the business rose
from 31% to 33%.
We also recognise and celebrate
the uniqueness of different cultures
through an annual calendar of events
and festivals and through sponsorship
of community events, such as ASB
Polyfest. Our people also continue to
learn and be inspired by other like-minded
organisations through our ongoing
association with the Global Women’s
Champions for Change programme.
In the financial year 2019, we continued
to focus on the safety and wellbeing
of our employees, creating a workplace
culture that supports people to stay
well, both from a physical and mental
health perspective.
In the 2019 financial year, we registered
a decrease in the number of recordable
injuries (lost time, medical treatment and
restricted work) amongst our people, in
comparison to the previous year. This
resulted in a reduction in our employee
recordable injury rate of 2.2%.
We are pleased that proactive attitudes
and increased staff engagement relating
to safety were reflected in the number of
safety observations and hazards reported,
increasing 6.8% year on year. Looking
ahead, we will continue to support our
staff through our digital wellbeing
programme Tracksuit, which offers
a range of health information and
challenges to engage our people and
ensure their wellbeing is front of mind.
DSV Logistics – awarded
Excellence and Best in
Category at the 2019 Property
Council Industry Awards
PropertyPeople
Firefighters Sky Tower Stair Challenge
2726
Annual Report 2019Annual Report 2019

OUR PEOPLE AND COMMUNITY:
Mana whenua as kaitiaki
We understand that as a New Zealand
business and employer, we must continue
to develop our understanding and
awareness of Tikanga Ma ̄ori, particularly
as we increase our engagement with local
iwi and work to develop the diversity of
our workforce. In 2019, members of our
Leadership Team completed a specialised
Indigenous Growth Cultural Capital
programme for executives to enhance
their understanding of mana whenua,
cultural protocols and the importance of
recognising indigenous employees. The
wa ̄nanga was facilitated by Indigenous
Growth Limited at Te Manukanuka o
Hoturoa marae – the marae located on
the Auckland Airport precinct.
We also embarked upon a design
collaboration with iwi, as part of our
departures project at the International
Terminal. Te A
̄
kitai Waiohua, Te Kawarau
a ̄ Maki and Makaurau Ma ̄ori trust shared
stories aligned with the overarching
design narrative ‘a journey through
New Zealand from the sea to the sky’.
These stories inspired award-winning
artist Dr Johnson Witehira to design
contemporary manifestations that
were interwoven through the fabric of
the interior architecture in the form of
routered relief, water-blasted etching
and laser cut stainless steel inserts.
Across the business, we have been
working closely with mana whenua
in relation to many developments,
including our airfield expansion and
the Northern Network roading project.
OUR PEOPLE AND PLACE:
Being a good neighbour
Auckland Airport is committed to
growing New Zealand’s success
in travel, trade and tourism but our
impact extends far beyond our financial
contribution to the New Zealand
economy. We continue to empower
people through a range of community
programmes in South Auckland and
across wider Auckland. Highlights
for the 2019 financial year include:
• Ten Year 13 school leavers were
awarded Auckland Airport Education
Scholarships, including a financial
grant, laptops and a mentor from the
airport team to help kick-start their
university careers;
• Our people teamed up with staff and
students from Tangaroa College to
participate in our annual environmental
coastline clean up adjacent to the
airport’s runway on Manukau Harbour;
• We several local organisations and
events through our sponsorship
programme, including the Counties
Manukau Life Education Trust, ASB
Polyfest, the Auckland Arts Festival’s
schools’ programme, Firefighters Sky
Tower Stair Challenge (Leukaemia
and Blood Cancer Foundation),
and the Second Nature Charitable
Trust. The total amount of these
sponsorships (including leverage
funding) was $140,250;
• We granted $30,000 to 30 community
groups across Auckland. In addition,
we redistributed $120,000 of donations
made by generous travellers into charity
globes in our terminals to 12 charities
as part of our annual 12 Days of
Christmas; and
• In 2019 we also granted $345,780.92
to the Auckland Airport Community
Trust, which distributes these funds to
residents, schools, community groups
and organisations living within the
Trust’s aircraft noise area.
OUR COMMUNITY:
Ara jobs and skills hub
Established in 2015 Ara, our airport jobs
and skills hub, is a joint initiative between
Auckland Airport, the South Auckland
community, government agencies,
training providers and employers.
In 2019, Ara was awarded the NZ Airports
Association Community Engagement
Initiative of the Year. Judges commented
it was a superb example of innovation,
providing benefits to the community and
the airport. Ara continues to connect
South Auckland people with training and
employment pathways. Highlights
for 2019 include:
• 210 job placements made through
the programme;
• 175 of these people reside in
South Auckland;
• 784 people completed training
opportunities offered through Ara;
• 696 participants engaged in
training; and
• 77 students from five local South
Auckland secondary-schools
graduated from a year-long working
experience programme working with
businesses within the airport precinct,
gaining valuable skills and earning
credits to support their NCEA* studies.
In 2019, Ara further strengthened its
service relocating to new headquarters
and establishing new partnerships.
As Auckland Airport’s development
programme continues to evolve,
opportunities for job seekers have
expanded beyond construction
and building to include hospitality
and logistics.
OUR PLACE:
Environment
This year we continued to progress our
targets for energy, carbon, water and
waste minimisation across our operations.
As a founding member of New Zealand
Climate Leaders Coalition, we are
particularly proud of the progress we
have made towards our new, more
ambitious carbon targets, set through
the international Science Based Target
Initiative (SBTi) in 2017. We are now
one of only 568 companies globally
that have set targets through the SBTi
commensurate with global warming less
than 2°C. We have continued to advance
one of our key initiatives to install ground
power units (GPUs), allowing arriving
and departing aircraft to use low-carbon
New Zealand grid power rather than
more carbon-intensive jet fuel while
at our gates. We are delighted that
our energy efficiency and low-carbon
initiatives have resulted in us being a
finalist in Enviro-Mark Solution’s 2019
Excellence in Climate Action Awards.
Health & Safety
6.8%
Reporting of safety observations
and hazards
2.2%
Employee recordable injury rate
41.3%
Passenger incident rate
Ara – Airport
Jobs and Skills Hub
784
Training opportunities
696
Participants engaged in training
210
Total job placements
Environmental
impact reductions
*
18%
Energy use per passenger
46%
Waste to landfill per passenger
33%
Carbon emissions per m
2
* All environmental impact figures are
in relation to our 2012 baseline
* Our science-based target: 45% per m
2

reduction in carbon emissions by 2025
from our 2012 baseline
Auckland Airport
Community Trust
$345,781
Granted to community projects by
the Auckland Airport Community
Trust to support learning, literacy
and life skills in South Auckland
SUSTAINABILITY GOVERNANCE:
Non-financial disclosure
We have a proud history of the
voluntary disclosure of our sustainability
performance. In the past year this has
included the publication of our own
Corporate Social Responsibility (CSR)
Report aligned to the Global Reporting
Initiative (GRI) Standard as well as:
• Carbon Disclosure Project (CDP):
disclosure of progress on our carbon-
reduction targets and benchmarking
against international peers. In the latest
assessment we moved upwards in
our ranking to a B, signalling active
management. This is higher than the
general average of B- and the Oceania
regional average of C;
• Dow Jones Sustainability Index:
best-in-class benchmark for investors
who have recognised that sustainable
business practices are critical to
generating long-term shareholder
value. We were included in the index
for the 7th year in a row;
• FTSE4Good: a series of ethical
investment stock market indices
launched in 2001 by the FTSE Group.
We are proud to have been included
in the index since 2008; and
• GRESB: an emerging index that
assesses the Environmental, Social
and Governance performance of real
estate and infrastructure portfolios
and assets worldwide. We have
participated in the infrastructure
assessment since 2017, including the
new Public Disclosures Assessment
in 2019.
* National Certificate of Educational Achievement
2928
Annual Report 2019Annual Report 2019

Sir Henry van der Heyden
Sir Henry van der Heyden became a
director of the company in September
2009 and was appointed Chair in 2013.
Sir Henry officially retired from the
Board on 31 October 2018.
Patrick Strange
Patrick Strange was appointed Chair
of the Board. He has been a director
of Auckland Airport since 2015.
Patrick is currently chair of Chorus
and a director of Mercury NZ and
Essential Energy Australia.
Governance
and leadership
Mary Liz-Tuck
General Manager Corporate Services
In October 2018, the chief executive
announced the appointment of Mary-Liz
Tuck as Auckland Airport’s new General
Manager Corporate Services and General
Counsel. Mary-Liz is responsible for
leading the company’s key corporate
functions, including legal, people, safety
and public affairs.
Mary-Liz brings a strong background
in the law as well as considerable
commercial and operational experience
having worked for Fisher & Paykel
Appliances in operational, customer
experience, quality, business excellence
and legal roles.
Most recently, Mary-Liz was Executive
Vice President, Business Excellence
and Quality, which involved leading an
organisational transformation programme,
delivering important benefits to the
business. Prior to these positions,
Mary-Liz practiced as a lawyer for
15 years, including with New Zealand
law firm Harmos Horton Lusk and
London based firm Freshfields
Bruckhaus Deringer.
Jonathan Good
General Manager Technology & Marketing
In May 2019, the chief executive
announced the appointment of Jonathan
Good as Auckland Airport’s new General
Manager Technology & Marketing.
Jonathan is responsible for the strategy
and execution of technology and
marketing programmes to improve
customer experience and ensure
operational excellence to meet Auckland
Airport’s current and future growth needs.
Jonathan has had extensive commercial
experience and held numerous leadership
roles, specialising in the creation of strong
teams and delivery of critical projects.
Most recently, he was Chief Technology
and Operating Officer of T&G Global,
where he transformed technology and
associated processes including the
delivery of an online auction site and
mobile applications. Before this, he led
the transformation of RD1 into Fonterra
Farm Source as General Manager
Business and Retail Development.
His background also includes working
as CEO and co-founder of a technology
start-up in the United States that was
acquired by Ancestry.com, prior to that
he worked for six years as a management
consultant at McKinsey.
Company
officer
changes
Change of chair
Board changes
New directors
Retired director
Dean Hamilton
Dean Hamilton became a director of the
company after the 2018 annual meeting.
He was previously CE of Silver Fern
Farms and prior to that held senior roles
for Deutsche Bank in both New Zealand
and Australia, advising clients on a broad
range of capital markets and mergers and
acquisition (M&A) transactions.
James Miller
James Miller became a director of the
company in September 2009 and was for
several years Chair of Auckland Airport’s
Audit and Financial Risk Committee.
James officially retired from the Board
at the 2018 annual meeting.
Tania Simpson
Tania Simpson became a director of
the company after the annual meeting on
31 October 2018. She is an experienced
professional director and is currently
a director of The Reserve Bank of
New Zealand and Tainui Group Holdings.
She previously served as a director of
Mighty River Power for 13 years. She has
experience leading Ma ̄ori organisations
and further supports Ma ̄ori development
as a trustee of Radio Maniapoto and
Waitangi National Trust.
Michelle Kong – Future Director
Michelle Kong was selected to participate
in the Future Director Programme in
January 2019. She has an extensive
background in infrastructure and strategic
development with over 15 years’
experience in the telecommunications
industry, prior to her current role at
Fletcher Distribution as General Manager
for Digital Ventures and Snappy. The
future director participates in all Board
and committee meetings but does
not take part in the actual Board
decision-making.
Seated – from left
Patrick Strange
Justine Smyth
Dean Hamilton
Standing – from left
Tania Simpson
Christine Spring
Mark Binns
Julia Hoare
Brett Godfrey
3130
Annual Report 2019Annual Report 2019

Our reported profit after taxation for the
2019 financial year was $523.5 million –
a decrease of 19.5% on the prior year’s
reported profit of $650.1 million.
Excluding the gain arising from the sale
of our investment in North Queensland
Airports in the prior year and fair value
changes, our underlying profit after
taxation for the 2019 financial year was
$274.7 million, an increase of 4.4%
on the prior year’s underlying profit of
$263.1 million.
Revenue increased 8.7% to $743.4 million
due to ongoing strong growth across a
number of business segments, including
retail, car parking and rental income.
Aeronautical revenue for the 2019
financial year was up 3.8% on 2018, with
the growth in passenger numbers and
aircraft movement partially offset by the
reduction in revenue associated with
lower aeronautical charges year on year.
Operating expenses increased 6.3%
to $188.6 million, in part due to higher
operating costs for rates and insurance,
as well as higher operating costs for asset
management, maintenance and airport
operations. Our earnings before interest
expense, taxation, depreciation, fair
value adjustments and investments in
associates (EBITDAFI) increased 9.6%
to $554.8 million.
Our total share of the underlying profit
from associates was $8.2 million for
the 2019 financial year, a decrease of
$8.5 million on the prior year following
the sale of Auckland Airport’s investment
in North Queensland Airports. The
underlying profit share from Queenstown
Airport was up 7.9% to $4.1 million and
the share from the Novotel Hotel was
down 8.9% to $4.1 million.
The final dividend for the 2019 financial
year is up 2.3% to 11.25 cents per share.
It will be imputed at the company tax rate
of 28% and paid on 18 October 2019 to
shareholders who are on the register at
the close of business on 4 October 2019.
As a result, the total dividend for the
12 months to 30 June 2019 is up 2.3%
to 22.25 cents per share. Our
performance in the 2019 financial
year means that underlying earnings
per share have continued to increase,
up 3.6% to 22.8 cents per share.
The 2019 financial year saw the company
make significant progress on the
development of key infrastructure
projects, as part of our plan to build an
airport of the future. We completed the
36,000m
2
upgrade to our International
Terminal departures area, delivering an
improved experience for customers by
offering a new retail and a food and
beverage precinct and a new aviation
security screening area. In addition,
we completed major transport upgrades
to Nixon Road and the Landing Road
intersection, reducing travel times for
customers. We also commenced work
on two of our key anchor projects – the
expansion of our airfield and the upgrade
of our inner core roading network.
The dividend reinvestment plan which
provides funding flexibility to support
our investment in new infrastructure and
growth, continues to be welcomed by
many of our shareholders. The dividend
reinvestment plan will again be in place
for the 2019 financial year final dividend,
enabling shareholders to elect to
purchase Auckland Airport shares
at a 2.5% discount to market price,
instead of receiving the dividend as cash.
The table on the following page shows
how we reconcile reported profit after tax
and underlying profit after tax for the
full-year periods ended 30 June 2019
and 30 June 2018.
The following adjustments have been
made to show underlying profit after tax
for the year ended 30 June 2019 and
30 June 2018:
• We have reversed out the gain arising
from the sale of our investment in
North Queensland Airports that
occurred in the prior financial year.
This sale was a one-off transaction
that does not reflect normal
business activities;
• We have reversed out the impact of
revaluations of investment property
in 2019 and 2018. An investor should
monitor changes in investment
property over time as a measure of
growing value. However, a change
in one particular year is too short to
measure long-term performance.
Changes between years can be
volatile and, consequently, will impact
comparisons. Finally, the revaluation
is unrealised and, therefore, is not
considered when determining
dividends in accordance with the
dividend policy;
20192018
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
EBITDAFI per Income Statement554.8–554.8506.4–
506.4
Share of profit of associates8.2–8.216.7–16.7
Gain on sale of associate–––297.4(297.4)-
Derivative fair value movement(0.6)0.6–(0.7)0.7-
Investment property fair value increases254.0(254.0)–152.2(152.2)-
Property, plant and equipment revaluation(3.8)3.8–––-
Depreciation(102.2)–(102.2)(88.9)–(88.9)
Interest expense and other finance costs(78.5)–(78.5)(77.2)–(77.2)
Taxation expense(108.4)0.8(107.6)(155.8)61.9(93.9)
Profit after tax523.5(248.8)274.7650.1(387.0)
263.1
• Consistent with the approach to
revaluations of investment property,
we also have reversed the revaluation
of the building and services class
of assets within property, plant and
equipment for the 2019 financial year.
The fair value changes in property,
plant and equipment are less frequent
than are investment property
revaluations, which also makes
comparisons between years difficult;
• We have reversed out the impact of
derivative fair value movements.
These are unrealised and relate to
basis swaps that do not qualify for
hedge accounting, as well as the
ineffective valuation movement in
other derivatives. The group holds its
derivatives to maturity so any fair value
movements are expected to reverse
out over their remaining lives. Further
information is included in note 18.2 of
the financial statements;
• In addition, to be consistent, we have
adjusted the revaluations of investment
property and financial derivatives that
are contained within the share of profit
of associates in 2018; and
• We have also reversed the taxation
impacts of the above movements in
both the 2019 and 2018 financial years.
Financial
Summary
Underlying earnings
per share
3.6%
22.8 cents per share
3332
Annual Report 2019Annual Report 2019

aucklandairpor t.co.nz
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Link Market Services Limited
Level 11, Deloitte Centre
80 Queen Street, Auckland 1010
New Zealand
PO Box 91976, Auckland 1142
New Zealand
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Annual Report 2019
This annual report covers the performance of
Auckland International Airport Limited for the
period from 1 July 2018 to 30 June 2019.
This volume contains overview information
and a summary of our performance against
financial and non-financial targets for the
2019 financial year. Our audited financial
statements for the period from 1 July 2018
to 30 June 2019 are contained in a separate
volume, which may be accessed at
report.aucklandairport.co.nz
2019 Financial Statements
The 2019 Financial Statements are available
on our website report.aucklandairport.co.nz
or you may elect to have a copy sent to you
by contacting our investor relations team.
Electronic shareholder
communication
If you would like to receive all investor
communications electronically, including
interim and annual shareholder reports,
please visit the Link Market Services website
www.linkmarketservices.co.nz or contact
them directly (details above).
Investor relations
PO Box 73020, Auckland Airport
Manukau 2150, New Zealand
Telephone: +64 9 255 9276
Email: investors@aucklandairport.co.nz
Website: www.aucklandairport.co.nz
Building
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Financial
Report
2019

Financial Statements
This annual report covers the performances of
Auckland International Airport Limited (Auckland
Airport) from 1 July 2018 to 30 June 2019. This
volume contains our audited financial statements.
Overview information and a summary of our
performance against financial and non-financial
targets for the 2019 financial year are obtained in
a separate volume, which may be accessed at
report.aucklandairport.co.nz.

Financial report 2019
Introduction
Auckland Airport is pleased to present the financial results for the year to 30 June 2019,
a year of solid financial performance and one where we made significant progress
toward our 30-year vision for the airport of the future.
In 2019, we embarked upon an intensive programme to refine our investment plan for the
delivery of a number of key aeronautical infrastructure projects that will transform the
airport over the coming years. We have also focused on delivering meaningful customer
improvements, including upgraded restroom facilities, generous public seating areas, a
sophisticated new food and beverage experience in the international departures area,
USB charging stations and a range of transport upgrades.
We remain committed to customer service, alongside the considerable activity underway
at the airport to deliver additional aeronautical capacity within the complex and
challenging environment of an operating airport. Enhancing our performance today, while
also focusing on delivering for future needs, will continue to deliver strong results for our
customers, our community, our country, our people and our investors.
This financial report analyses our results for the 2019 financial year and its key trends. It
covers the following areas:
• 2019 Financial performance summary;
• Key performance measures;
• 2019 Passenger movement analysis;
• 2019 Aircraft volume analysis;
• 2019 Financial performance analysis;
• 2019 Financial position analysis; and
• 2019 Returns for shareholders.
2019 Financial performance summary
This financial summary provides an overview of the financial results and key trends for the
year ended 30 June 2019 compared with those for the previous financial year. Readers
should refer to the notes and accounting policies set out in the financial statements for
a full understanding of the basis on which the financial results are determined.
In the 2019 financial year, revenue increased by 8.7% to $743.4 million, with strong
growth maintained across several business segments. Aeronautical revenues increased
3.8% on the prior year, on the back of growth in passenger volumes and aircraft
movements through the airport and growth in airfield parking charges. These were
partially offset by reductions in aeronautical prices for the 2019 financial year. Retail
revenue increased 18.5% following the expansion of the departure area of the
International Terminal and the opening of new stores. Car parking revenues grew slightly
ahead of passenger volumes, with income for the year up 5.2%. Aeronautical and
property rental income delivered strong growth in the period, with revenue increases of
14.9% and 9.5% respectively.
Our reported profit after taxation for the 2019 financial year was $523.5 million – a
decrease of 19.5% on the prior year's reported profit of $650.1 million. Excluding the
gain arising from the sale of our investment in North Queensland Airports in the prior year
and fair value changes, our underlying profit after taxation for the 2019 financial year was
$274.7 million, an increase of 4.4% on the prior year's underlying profit of $263.1 million.
1
Financial report

A summary of the financial results for the year to 30 June 2019 and the 2018
comparative are shown in the table below.
2019
$M
2018
$M% change
Income743.4683.98.7
Operating expenses188.6177.56.3
Earnings before interest, taxation, depreciation, fair value adjustments
and investments in associates (EBITDAFI)554.8506.49.6
Gain on sale of associate-297.4-
Reported profit after tax523.5650.1(19.5)
Underlying profit after tax274.7263.14.4
Earnings per share (cents)43.454.3(20.1)
Underlying earnings per share (cents)22.822.03.6
Ordinary dividends for the full year
1
– cents per share22.2521.752.3
– value distributed269.1261.13.1
1. Comprising the 2019 interim and final dividends.
Underlying profit is how we measure our financial performance
The directors and management of Auckland Airport understand the importance of
reported profits meeting accounting standards. Because we comply with accounting
standards, investors know that comparisons can be made with confidence between
different companies and that there is integrity in our reporting approach. However, we
also believe that an underlying profit measurement can assist investors to understand
what is happening in a business such as Auckland Airport, where revaluation changes
can distort financial results or where one-off transactions, both positive and negative, can
make it difficult to compare profits between years.
For several years, Auckland Airport has referred to underlying profit alongside reported
results. We do so when we report our results, but also when we give our market
guidance (where we exclude fair value changes and other one-off items) or when we
consider dividends and our policy to pay 100% of underlying net profit after tax (excluding
unrealised gains and losses arising from revaluation of property or treasury instruments
and other one-off items). However, in referring to underlying profits, we acknowledge our
obligation to show investors how we have derived this result.
The table below shows how we reconcile reported profit after tax to underlying profit
after tax for the years ending 30 June 2019 and 30 June 2018.
2019
2018
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
EBITDAFI per Income Statement554.8-554.8506.4-506.4
Share of profit of associates8.2-8.216.7-16.7
Gain on sale of associate---297.4(297.4)-
Derivative fair value movement(0.6)0.6-(0.7)0.7-
Investment property fair value increases254.0(254.0)-152.2(152.2)-
Property, plant and equipment revaluation(3.8)3.8----
Depreciation(102.2)-(102.2)(88.9)-(88.9)
Interest expense and other finance costs(78.5)-(78.5)(77.2)-(77.2)
Taxation expense(108.4)0.8(107.6)(155.8)61.9(93.9)
Profit after tax523.5(248.8)274.7650.1(387.0)263.1
2
Auckland International Airport Limited

We have made the following adjustments to show underlying profit after tax for the 12-
month periods ended 30 June 2019 and 30 June 2018:
• We have reversed out the gain arising from the sale of our investment in North
Queensland Airports that occurred in the prior financial year. This sale was a one-off
transaction that does not reflect normal business activities;
• We have reversed out the impact of revaluations of investment property in 2019 and
2018. An investor should monitor changes in investment property over time as a
measure of growing value. However, a change in one particular year is too short to
measure long-term performance. Changes between years can be volatile and,
consequently, will impact comparisons. Finally, the revaluation is unrealised and,
therefore, is not considered when determining dividends in accordance with the
dividend policy;
• Consistent with the approach to revaluations of investment property, we have also
reversed the revaluation of the building and services class of assets within property,
plant and equipment for the 2019 financial year. The fair value changes in property,
plant and equipment are less frequent than are investment property revaluations,
which also makes comparisons between years difficult;
• We have reversed out the impact of derivative fair value movements. These are
unrealised and relate to basis swaps that do not qualify for hedge accounting, as
well as the ineffective valuation movement in other financial derivatives. The group
holds its derivatives to maturity, so any fair value movements are expected to reverse
out over their remaining lives. Further information is included in note 18.2 of the
financial statements;
• In addition, to be consistent, we have adjusted the revaluations of investment
property and financial derivatives that are contained within the share of profit of
associates in the prior year; and
• We have also reversed the taxation impacts of the above movements in both the
2019 and 2018 financial years.
3
Financial report

Key performance measures
Auckland Airport monitors a wide range of financial and non-financial performance
measures. This year we have again considered the most relevant performance measures
against our four strategic themes:
4
Auckland International Airport Limited

The key performance measures are outlined in the following table. It lists each measure,
provides the corresponding performance outcome for the last three financial years and
indicates which of our four strategic themes is most relevant to the performance
measure. Commentaries on performance outcomes are included in the analysis in the
remainder of this financial report.
StrategyMeasure201920182017
% change
2018–2019
% change
2017–2018
GROW
TRAVEL
AND TRADE
MARKETS
Total aircraft seat capacity
International aircraft seat
capacity14,062,76113,658,14713,273,7163.02.9
Domestic aircraft seat capacity11,424,08411,143,89110,716,1192.54.0
Passenger movements
International passengers10,506,66010,202,5269,743,2793.04.7
International transit passengers1,011,3281,063,8561,077,256(4.9)(1.2)
Domestic passengers9,593,6259,263,6668,601,8413.67.7
Maximum certified take-off
weight (MCTOW)
International MCTOW (tonnes)5,894,1125,798,0185,609,2441.73.4
Domestic MCTOW (tonnes)2,372,4122,341,6992,238,8531.34.6
Cargo volume
Volume of international cargo
movements (tonnes)190,905187,258176,7561.95.9
STRENGTHEN
OUR
CONSUMER
BUSINESS
Passenger spend rate (PSR)
Change in International
Terminal PSR6.6%(1.8%)(2.4%)
Income per passenger (IPP)
Retail IPP$20.50$17.76$15.8315.412.2
Average revenue per
parking space (ARPS)
Change in ARPS3.8%1.9%(4.2%)
BE FAST,
EFFICIENT
AND
EFFECTIVE
Return on investment
Return on capital employed8.3%11.0%
1
7.9%
Passenger satisfaction/
Airport service quality
(ASQ)
International4.264.124.193.4(1.7)
Domestic4.033.974.011.5(1.1)
INVEST FOR
FUTURE
GROWTH
Rent roll
Annual rent roll $m
(property division)100.090.272.910.923.7
ALL
EBITDAFI
EBITDAFI per passenger$26.28$24.67$24.366.51.3
1. Includes $297.4 million gain on sale of associate.
5
Financial report

2019 Passenger movement analysis
Passenger movements are a significant driver of value for Auckland Airport, with the
majority of aeronautical revenue coming from passenger charges. International
passenger volumes have a greater impact on financial performance than domestic, with
the aeronautical revenue generated by an international passenger approximately four
times that of a domestic passenger.
20192018% change
Auckland Airport passenger movements
International arrivals5,284,3255,116,3413.3
International departures5,222,3355,086,1852.7
International passengers excluding transits10,506,66010,202,5263.0
Transit passengers1,011,3281,063,856(4.9)
Total international passengers11,517,98811,266,3822.2
Domestic passengers9,593,6259,263,6663.6
Total passenger movements21,111,61320,530,0482.8
International passenger movements
International passenger numbers increased by 2.2% in the year to 30 June 2019
reflecting more moderate growth across a range of markets compared with that seen in
prior years and a decline in transit numbers year on year.
International passenger growth has been strongest across the Asia, Pacific Island and
North American regions this year, driven by capacity growth from both new services and
additional frequency introduced on existing routes. Passengers to and from Chinese
cities were up 6.2% as the use of larger aircraft catered for additional demand on key
routes. Singapore passenger volumes were up 22.9% as a result of the addition of a
third daily flight. Indonesian passenger volumes were up 301.5% on the prior year
reflecting the Emirates Auckland-Denpasar service operating for a full year. The
introduction of a new direct service between Auckland-Taipei saw an increase in
capacity of 65,000 seats for the year. North America routes saw a 3.5% increase in
capacity as a result of the introduction of the new Auckland-Chicago service in
November 2018 and there was a 3.6% increase in capacity to the Pacific Islands due to
frequency increases to the region.
In passenger arrivals by country of last residence, we saw increases from three of our five
largest source markets. The additional services to the United States helped deliver an
increase in American arrivals of 19,300 (7.1%). New Zealand arrivals increased by
130,700 (5.7%) and Australians by 15,800 (1.8%). Arrivals from China fell 8.7% in the
year as the decline in group and indirect visitors offset the increase in visitors arriving on
direct flights from Chinese cities. Visitors from the United Kingdom and Ireland declined
by 2,400 (1.3%) as they favoured shorter-haul travel. Taiwanese visitor arrivals increased
by 11,600 (35.7%) following the launch of the new Auckland-Taipei direct service.
6
Auckland International Airport Limited

The table below shows the top 20 volumes of passenger arrivals by country of last
permanent residence to Auckland Airport in the 2019 financial year.
International passenger arrivals
Country of last permanent residence20192018% change
% of total 2019
arrivals
% of total 2018
arrivals
New Zealand2,441,0152,310,3705.746.245.4
Australia874,027858,1871.816.516.9
China, People's Republic of360,805395,075(8.7)6.87.8
United States of America291,469272,1707.15.55.3
United Kingdom and Ireland188,099190,482(1.3)3.63.7
Japan92,13294,304(2.3)1.71.9
Germany75,65276,074(0.6)1.41.5
Korea, Republic of67,98872,764(6.6)1.31.4
Canada62,51158,4726.91.21.1
India58,87961,316(4.0)1.11.2
Hong Kong45,60049,666(8.2)0.91.0
Taiwan44,23732,59435.70.80.6
Malaysia43,62845,034(3.1)0.80.9
Singapore37,19033,62610.60.70.7
France35,71338,363(6.9)0.70.8
Fiji30,71527,9979.70.60.6
Samoa29,52326,68710.60.60.5
French Polynesia24,76423,7154.40.50.5
South Africa24,38419,18727.10.50.4
Netherlands22,50422,832(1.4)0.40.4
SOURCE: Statistics New Zealand
Visitor arrivals by purpose of visit
The most common reasons for international arrivals continue to be holidays (24.8%) and
visiting friends and relatives (15.2%). The ongoing stability in these categories reflects New
Zealand's success in driving international tourism numbers and maintaining a broad mix
of visit purposes to New Zealand. Auckland Airport’s international passenger growth has
been underpinned by growth in the New Zealand outbound market and a diverse mix
of overseas markets delivering inbound passengers.
Purpose of visit
20192018% change% of total
Foreign residents
Holiday1,309,1621,328,496-1.524.8
Visit friends/relatives803,758814,736-1.315.2
Business/conference296,930285,2164.15.6
Education/medical59,11558,6400.81.1
Other (Incl. not stated/not captured)374,345318,88317.47.1
New Zealand residents2,441,0152,310,3705.746.2
SOURCE: Statistics New Zealand
Domestic passenger movements
Domestic passenger numbers also grew in the 2019 financial year, increasing by 3.6%
or 329,959 passengers. This growth was delivered through increased capacity added
on Air New Zealand’s main trunk jet services, particularly on the Auckland-Queenstown
route and regional passenger growth of 5.3%, following load factor improvements on
regional services.
7
Financial report

2019 Aircraft volume analysis
Total aircraft movements in the year were 178,771, an increase of 2.6% from the 2018
financial year, while MCTOW increased 1.6% to 8,266,524 tonnes. The slightly lower
MCTOW growth versus aircraft movements partly reflects the withdrawal of the Emirates
A380 aircraft on the Tasman and other carriers increasing the frequency of smaller aircraft.
20192018% change
Aircraft movements
International57,08255,6932.5
Domestic121,689118,5832.6
Total aircraft movements178,771174,2762.6
MCTOW (tonnes)
International MCTOW5,894,1125,798,0181.7
Domestic MCTOW2,372,4122,341,6991.3
Total MCTOW8,266,5248,139,7171.6
2019 Financial performance analysis
Revenue
In the 2019 financial year, revenue increased by 8.7% to $743.4 million, with strong
revenue growth across several business segments. Retail revenue was up 18.5%, Car
parking revenue up 5.2% and Aeronautical and Property rental income up 14.9% and
9.5%, respectively. Aeronautical income rose 3.8% on the prior year, as the growth in
passenger and aircraft movements, as well as aircraft parking charges, was partially
offset by a reduction of aeronautical charges for the second year in a row as per our
aeronautical pricing schedule for the FY2018-FY2022 pricing period.
2019
$M
2018
$M% change
Operating revenue
Airfield landing charges116.9116.80.1
Airfield parking charges10.75.3101.9
Total airfield income127.6122.14.5
Passenger services charge185.1179.13.4
Retail income225.8190.618.5
Car parking income64.261.05.2
Rental income - Property86.679.19.5
Rental income - Aeronautical20.818.114.9
Rental income - Retail0.40.4-
Total rental income107.897.610.5
Rates recoveries6.76.011.7
Interest income1.82.2(18.2)
Other income24.425.3(3.6)
Total revenue743.4683.98.7
Airfield income
Airfield income comprises both airfield landing charges and aircraft parking charges.
Airfield landing charges are based on the MCTOW of aircraft and parking charges are
based on the time aircraft are parked on the airfield. Total airfield income, including
landing charges and parking charges, increased by $5.5 million, or 4.5%, to
$127.6 million. Total MCTOW across international and domestic landings grew by 1.6%
in the year. This increase was largely offset by Auckland Airport reducing its landing
charges for the 2019 financial year, resulting in airfield landing charge income being flat
year on year. Aircraft parking charges were $10.7 million in the 2019 financial year, an
increase of 101.9% on prior year due to a combination of aircraft being parked for longer
8
Auckland International Airport Limited

periods on the airfield and the full year effect of the parking charge that was implemented
part way through the prior year.
Passenger services charge
Passenger services charge (PSC) income increased by $6.0 million, or 3.4%, in the 2019
financial year. 2019 was the second year of the new FY2018-FY2022 aeronautical pricing
schedule and included further reductions in international passenger service charges. On
22 February 2019, Auckland Airport discounted its previously published aeronautical
prices for FY2020-FY2022 in response to the Commerce Commission's final opinion
regarding our target return for the period. The 2020 prices shown in the table below
reflect these discounts.
2018
$
2019
$
2019 price
change %
2020
$
2020 price
change %
International PSC (≥ 2 years)15.6515.44(1.3)14.91(3.4)
Domestic PSC (≥ 2 years)2.282.488.82.625.6
Regional PSC (≥ 2 years)2.132.297.52.352.6
Transits PSC (≥ 2 years)4.274.8212.95.116.0
Retail income
Auckland Airport earns concession revenue from retailers within the Domestic and
International Terminals, including Duty Free, Specialty, Luxury and Destination stores,
Food and Beverage outlets, Foreign Exchange and Advertising, as well as some Off-
airport retailers. In addition, income is generated through Auckland Airport's Strata
Lounge in the International Terminal.
2019 was a landmark year for retail at Auckland Airport, with the opening of the Luxury
'high street' stores and an expanded Food and Beverage offering in the departure area
of the International Terminal. New retail concepts opened during the year, alongside the
previously opened new and exciting retail and Duty Free concepts, have created a retail
environment offering the best of New Zealand and the world. The improved environment
is being recognised by our customers, with the International Terminal annual ASQ score
rising to 4.26, the highest since 2012, and the Food and Beverage precinct winning top
honours at the 2019 Airport Food & Beverage (FAB) Awards in Dallas.
The Mall, our online marketplace, celebrated its first birthday during the year. The Mall
makes duty free and tax free shopping even easier, by allowing passengers to shop
online anywhere, anytime up to 24 hours before departure. Purchases across multiple
retailers are facilitated in a single online checkout and pick up can occur at either
international departures or arrivals. The number of products available in The Mall
increased during the year, with the number of transactions in the second half of the year
more than doubling those in the first six months. Auckland Airport’s customer loyalty
programme, Strata Club, reached 220,000 members in 2019, an increase of 83% on the
prior year. The programme ties our retail, lounge and parking products together to
seamlessly drive cross-purchasing through the provision of tailored offers to members.
Following the success of Strata Lounge in the International Terminal, work is currently
underway to open a Strata Lounge in the Domestic Terminal. This will provide
passengers with an option to use the lounge to relax and unwind prior to departure.
Total retail income for the 2019 financial year was $225.8 million, an increase of
$35.2 million, or 18.5%, on the previous financial year. Auckland Airport’s retail income
per international passenger was $20.50 for the 2019 financial year, a 15.4% increase on
the prior year. This growth in income per international passenger was driven by the
contribution from 32 new retail concepts that opened during the year, the full year effect
of prior year openings and strong performance from The Collection Point and Strata
Lounge.
International PSR grew 6.6% in the 2019 financial year reflecting the benefits of the
largely completed international departures development. Duty Free was a significant
contributor to this growth with a PSR increase of 6.1%. At a Duty Free product category
level, electronics, cosmetics & skincare and liquor recorded growth in PSR of 27%, 20%
and 3%, respectively, whilst wines and tobacco PSR both decreased by 7%. Growth in
9
Financial report

overall PSR was also driven by the new Luxury stores within the 'high street' area of the
new international departures lounge.
Strata Lounge had another year of strong growth, with revenue up 58.5% on the
previous financial year reflecting higher demand for the service, particularly at peak
periods.
Car parking income
Car parking income in the 2019 financial year was $64.2 million, an increase of
$3.2 million or 5.2%. The average revenue per space increased by 3.8% in the 2019
financial year as a result of an increase in demand, particularly evident in higher value
products, and improved utilisation of space.
During the year, we continued our investment in parking capacity, technology solutions
and improving the product offering. 1,021 spaces were lost during the year at the
International Terminal due to the commencement of construction of the Pullman hotel,
our new multi-storey car park and additional terminal building enabling works. In early
July 2019, we opened a new multi-storey car park, which added 1,000 new spaces.
This capacity is not included in the June numbers below and will help relieve capacity
constraints at the International Terminal. Earlier in the year, 700 spaces were added at
the Domestic Terminal through the repurposing of old cargo tenancies into parking, and
additional space was gained for Valet storage in July 2019, equivalent to 500 new bays.
Valet is proving a popular option for customers and it also reduces capacity
requirements for close proximity parking to the terminal.
The table below outlines the number of spaces available at 30 June 2019 and 30 June
2018.
Parking capacity as at 30 June
20192018change% change
International Terminal3,3924,413(1,021)(23.1)
Domestic Terminal3,2262,61161523.6
Park & Ride1,4271,719(292)(17.0)
Valet795795--
Staff3,0922,80029210.4
Total11,93212,338(406)(3.3)
Demand for parking at the airport continues to be driven by New Zealand passenger
growth. Auckland Airport provides a range of product offerings to service the market at
various competitive price points. Changes in infrastructure and consumer demands
emphasise the importance of providing options for the travelling public and investing in
technology solutions to improve customer experience. Technology investments during
the year included car park guidance systems, improving both occupancy rates and
customer experience, as well as vehicle tracking systems for Valet and an investigation
of 'frictionless parking' technology.
Rental income
Auckland Airport earns rental income from space leased in facilities, such as terminals,
cargo buildings and from stand-alone investment properties. Total rental income was
$107.8 million in the 2019 financial year, an increase of 10.5% on the previous financial
year. Property rental income (excluding aeronautical and retail rental income) was
$86.6 million in the 2019 financial year, an increase of $7.5 million, or 9.5%, on the
previous financial year. Revenue growth in the year reflected the completion of new
assets such EBOS and DSV, as well as the full-year impact of developments completed
during the previous financial year, such as Ministry for Primary Industries, Rohlig,
Bunnings, Go Rentals, Koru Valet and the Duplex at 15 Maurice Wilson Drive. Strong
rental growth in the existing portfolio and by ibis Budget Hotel also contributed to the
income growth in 2019, with the latter seeing a 7.0% increase in revenues year on year.
Soon to be completed projects, such as Bapcor, Airways and The Landing Cafe, will
positively impact rental income in the 2020 financial year.
10
Auckland International Airport Limited

Other income
Other income includes utilities, such as the sale of electricity, gas and water reticulation,
plus transport licence fees to taxis, shuttles and other operators. Total income from these
sources was $24.4 million, a decrease of $0.9 million, or 3.6%, on the previous financial
year. This reduction was due to a combination of reasons, including a reduction in
electricity line sales and recoverable on-charges as a result of fewer offices available for
rent due to the International Terminal departures expansion project, repurposing the
Cargo Central facility into a car park and lower IT revenues as the free Wi-Fi period was
expanded to two hours.
Expenses
Total expenses were $477.7 million in the 2019 financial year, a decrease of
$21.7 million, or 4.3%, on the prior year, with the majority of the decrease explained by
the higher tax expense in financial year 2018 associated with the sale of our investment
in North Queensland Airports.
Operating expenses
Total operating expenses (excluding depreciation, interest and taxation) were
$188.6 million in the 2019 financial year, an increase of $11.1 million, or 6.3%, on the
prior year. The increased operating expenses during the 2019 financial year reflect a
more moderate rate of opex growth following the two years of faster growth that we
forecast in mid-calendar 2017, when we announced our aeronautical prices for the next
five financial years.
2019
$M
2018
$M% change
Operating expenses
Staff59.157.92.1
Asset management, maintenance and airport operations81.169.516.7
Rates and insurance16.113.717.5
Marketing and promotions12.713.8(8.0)
Professional services and levies8.611.1(22.5)
Other11.011.5(4.3)
Total operating expenses188.6177.56.3
Depreciation102.288.915.0
Interest78.577.21.7
Taxation108.4155.8(30.4)
Staff costs rose $1.2 million, or 2.1%, reflecting an increase in permanent head count for
airfield safety and compliance as part of our ongoing focus on safety. It also included
higher staff costs in airport development and delivery associated with our substantial
capital programme, not all of which were capitalised. These additions were partially offset
by a decline in the use of casual staff and contractors.
Asset management, maintenance and airport operations expenses increased by
$11.6 million, or 16.7%, in the 2019 financial year. Ongoing growth in aeronautical
activity resulted in increased expenditure on precinct-wide security operations (post the
tragic events in Christchurch), baggage equipment operations and additional technology
services to cater for increased demand. Ongoing modernisation of our business
technology platforms drove additional costs. These additional expenses were partially
offset by the decrease in environmental costs, as prior year results contained a non-
recurring $1.2 million provision for contaminated foam disposal, and a decline in utilities
expenses. Finally, Strata Lounge, Park & Ride and Valet continued to drive higher
operating costs on the back of increasing demand and frequency, which were more than
offset by higher revenues.
Rates and insurance expenses increased by $2.4 million, or 17.5%, in the 2019 financial
year, with rates accounting for $1.7 million of the increase. Rates increases were driven
by Auckland Council's average rates increase of 2.5% across the portfolio, the addition
of new properties, as well as a significant increase in capital values as part of Auckland
11
Financial report

Council's three year rating valuations review cycle. Rates increases on developed
investment property are matched by offsetting increases in rates recoveries from tenants
included within other income. The increase in insurance costs was driven by the
annualised effect of the larger footprint of the terminal buildings, including the level 1
international departures expansion project, and a 40% rise in the fire service levy. In
addition, Directors & Officers premiums increased as a result of a challenging claims
environment, particularly involving class actions against ASX listed companies.
Marketing and promotions expenditure in the 2019 financial year declined by
$1.1 million, or 8.0%, as we brought marketing execution resource in-house, scaled back
on other non-aeronautical activity, as part of a more targeted approach to marketing, and
fewer air services required support compared to the prior year.
Fees for professional services saw a reduction of $2.5 million, or 22.5%, to $8.6 million
in the 2019 financial year, as the volume of work related to regulatory matters continued
to decline following our final PSE3 aero pricing decision in February this year and a
number of studies or initiatives undertaken in the prior year that did not repeat in 2019.
Depreciation
Depreciation expense in the 2019 financial year was $102.2 million, an increase of
$13.3 million, or 15.0%, on the previous financial year. The increase was driven by new
fixed assets commissioned in the 2019 financial year, the annualised impact of the fixed
assets commissioned part way through the 2018 financial year, asset splits resulting in
higher depreciation rates than when initially capitalised on a project basis and some
assets being reclassified from investment property to depreciable property, plant and
equipment.
Interest
Interest expense was $78.5 million in the 2019 financial year, an increase of $1.3 million,
or 1.7%, on the previous financial year. This was the combined result of the small
increase in the average interest rate for the year to 4.28% from 4.24% and a reduction
in the proportion of interest costs that were capitalised into capital works in progress.
Taxation
Taxation expense was $108.4 million in the 2019 financial year, a decrease of
$47.4 million on the previous financial year. The underlying tax expense was
$107.6 million, an increase of $13.7 million, or 14.6%, on the previous financial year.
Underlying tax excludes capital gains tax on the sale of our investment in North
Queensland Airports, as well as the tax effect of fixed asset and financial derivatives
revaluations.
Share of profit from associates
Our total share of the profit from associates in the 2019 financial year was $8.2 million,
comprising Tainui Auckland Airport Hotel Limited Partnership (TAAH) ($4.1 million) and
Queenstown Airport ($4.1 million). This was a $8.5 million decrease on the $16.7 million
share of profit in the previous financial year, which also included $8.5 million from North
Queensland Airports. The sale of Auckland Airport's investment in North Queensland
Airports was completed in March 2018.
There was no fair value gain/loss on financial instruments included in the 2019 financial
year's share of profit from associates. In the 2018 financial year, the share of profit from
associates included Auckland Airport's share of North Queensland Airports’ fair value
loss on financial instruments of $0.1 million and TAAH’s fair valuation gain on financial
instruments of $0.1 million. Excluding these fair value changes and excluding North
Queensland Airports, Auckland Airport’s share of underlying profit from associates was
down by $0.1 million, or 1.2%, to $8.2 million for the 2019 financial year.
Queenstown Airport
Queenstown Airport's net profit after tax for the 2019 financial year rose by 11.4% to
$16.6 million. Auckland Airport’s 24.99% share of Queenstown Airport’s net profit after
tax was $4.1 million, a $0.3 million increase on the previous financial year.
12
Auckland International Airport Limited

2019
$M
2018
$M% change
Financial performance
Total revenue49.645.78.5
EBITDAFI34.331.68.5
Total net profit after tax16.614.911.4
Passenger performance
Domestic passengers1,665,3971,544,2257.8
International passengers655,950596,44410.0
Total passengers2,321,3472,140,6698.4
Queenstown Airport's passenger volumes were up 8.4% to 2,321,347 on top of last
year’s growth of 13.1%. International passengers rose 10.0% as further capacity was
added across all the Trans-Tasman routes. In particular, the Melbourne and Brisbane
routes saw significant growth following the Air New Zealand and Virgin Australia alliance
split, as a result of increased competition on these routes. Similarly, domestic
passengers grew 7.8%, with further capacity added on the Auckland and Wellington
routes.
Auckland Airport received a dividend of $1.8 million from its investment in Queenstown
Airport in the 2019 financial year, flat on the previous financial year.
Tainui Auckland Airport Hotel Limited Partnership
At 30 June 2019, Auckland Airport had a 40% investment in the Novotel hotel joint
venture with Tainui Group Holdings and Accor Hotel Group. In 2017, Auckland Airport
entered into an agreement with Tainui Group Holdings and Accor Hotel Group to
increase its stake in the joint venture from 20% to 50%. The first phase of the transaction
was completed in February 2017 when Auckland Airport purchased a 20% stake from
Tainui Group Holdings. The second phase is now expected to be completed in the 2020
financial year when Auckland Airport purchases Accor Hotel Group’s 10% stake in the
joint venture. In the 2019 financial year, Auckland Airport’s share of underlying profit from
this investment was $4.1 million, a decrease of $0.4 million, or 8.9%, compared with the
previous financial year. Auckland Airport's share of the joint venture's reported profit in
the 2019 financial year was also $4.1 million.
The Novotel hotel’s annual average occupancy rate for the 2019 financial year increased
to 93.1%, up from 92.4% in the previous financial year, while the average daily rate
decreased by 0.8%, reflecting a more competitive hotel market environment across the
Auckland region.
Tainui Auckland Airport Hotel 2 Limited Partnership
A limited partnership between Tainui Group Holdings Limited and Auckland Airport was
formed in February 2017 to build and operate a new Pullman Hotel at Auckland Airport.
Auckland Airport and Tainui Group Holdings each hold a 50% stake in the partnership.
To date, Auckland Airport has contributed $5.2 million equity into the partnership.
Two of Auckland Airport’s senior management staff are directors on the board of the
partnership. No directors’ fees are paid in relation to these appointments, but the skills
and experience of these directors are being utilised to protect and grow Auckland
Airport’s investment.
Fair value changes
In the 2019 financial year, investment property fair value changes resulted in a gain in the
income statement of $254.0 million, compared with a gain of $152.2 million in the
previous financial year. Improved land values for vacant land, firming of the capitalisation
rates of the property portfolio, the addition of new properties and improvements in lease
terms were drivers of the increase.
As at 30 June 2019, the buildings and services asset class within property, plant and
equipment was revalued, resulting in a gain of $87.6 million to the revaluation reserve,
partially offset by a $3.8 million revaluation loss recorded in the income statement.
13
Financial report

Also, as at 30 June 2018, the land asset class within property, plant and equipment was
revalued, resulting in an upward movement of $1,189.6 million. That revaluation uplift was
recorded directly in other comprehensive income in the prior year. It had no impact on
the value of Auckland Airport’s regulatory asset values as presented in the annual
disclosure statements nor on our aeronautical pricing for the FY2018-FY2022 period.
2019 Financial position analysis
As at 30 June
2019
$M
2018
$M% change
Non-current assets8,590.88,018.47.1
Current assets106.3178.4(40.4)
Total assets8,697.18,196.86.1
Non-current liabilities2,104.22,185.6(3.7)
Current liabilities560.0329.170.2
Equity6,032.95,682.16.2
Total equity and liabilities8,697.18,196.86.1
As at 30 June 2019, our total assets book value was $8,697.1 million, an increase of
$500.3 million, or 6.1%, on the prior year. The increase in total assets is primarily the
result of increased capital expenditure and the revaluation of investment property and
property, plant and equipment buildings and services.
Shareholders’ equity was $6,032.9 million as at 30 June 2019, an increase of
$350.8 million, or 6.2%, on 30 June 2018. The movement in equity reflects the retained
profit in the year, the increase in the property, plant and equipment revaluation reserve,
as well as a $64.0 million rise in shares on issue as a result of the dividend reinvestment
plan being operative throughout the year.
Gearing, measured as debt to debt plus the market value of shareholders’ equity,
decreased to 15.5% as at 30 June 2019, from 20.3% as at 30 June 2018.
Capital expenditure
For the 2019 financial year, Auckland Airport continued to implement its 30-year vision
to build New Zealand’s airport of the future, investing $284.1 million in airport precinct
infrastructure over the period.
Key aeronautical projects during the year included the completion of the level 1
departures expansion project at the International Terminal, design activity for the
development of new taxiways and remote stands to the north and west of Pier B, design
and enabling activity for the expansion of the arrivals biosecurity screening area and
expenditure on design and consultation for the new Domestic Jet Facility.
Investment property capital expenditure was underpinned by significant expenditure on
a pre-leased 85,000m² office and warehouse facility for Foodstuffs NZ Limited, which is
scheduled for completion in the 2021 financial year.
Infrastructure and other investment was dominated by a number of transport-related
projects, including the completion of the southern bypass via Nixon Road, the
introduction of dedicated bus and transit lanes in the airport precinct and design activity
on the core Northern Network and Southern Network transport initiatives.
14
Auckland International Airport Limited

Capital expenditure summary
Category20192018%Key 2019 projects
$M$Mchange
Aeronautical106.0280.6(62.2)
International Terminal level 1 expansion, design activity for development of the
second runway, new taxiways and remote stands, design and enabling activity
for the expansion of the arrivals biosecurity screening area and consultation and
design work on the new Domestic Jet Facility.
Infrastructure
and other
46.020.8121.2
Completed the southern roading bypass via Nixon Road and completed the
conversion of a former property tenancy into ‘The Base’, a custom fitted out
facility for Auckland Airport’s Engineering Services team. Progressed design
activity on the Northern Network and Southern Network transport initiatives,
which include the development of new terminal entry and exit roads and the
introduction of high occupancy vehicle lanes on SH20B. Continued investment
in utilities infrastructure to ensure resilience of services. Ongoing investment in
technology infrastructure, including specific projects to ensure compliance with
cybersecurity requirements and replacement of end-user technology across
the company to standardise it and enable more effective operation and
support.
Property87.880.29.5
Completion of preleased premises for DSV and a speculative warehouse
development at the Landing, which has now been leased. Continued
development of a purpose-built office and warehouse facility for Foodstuffs.
Commenced construction of preleased Airways premises and two speculative
warehouse developments at Timberly Road, one of which has now been
leased. Completed design for the conversion of an existing office building into
a new 4-star hotel.
Retail19.012.552.0
Development of new Food and Beverage retail tenancies at both the
International and Domestic Terminals and continued investment in our online
retail channel, The Mall.
Car parking25.311.1127.9
Completed the development of new 1,000 bay multi-storey car park building
near the International Terminal and finalised the reconfiguration of the former
Cargo Central property precinct into car parking facilities. Commenced the
development of a new 1,000 bay Valet storage facility on Uenuku Way. 500
Valet storage spaces have been commissioned in July 2019, with the
remainder scheduled to open in Q2 FY20.
Total284.1405.2(29.9)
A key characteristic of 2019 capital investment has been the range of design and
enabling activities that have occurred across the precinct and will continue into the 2020
financial year. The implementation of our 30-year vision to build an airport of the future
involves the planning and coordination of several interdependent multi-year programmes
of work. Examples of this include the delivery of the new 1,000 bay multi-storey car park
at the International Terminal in July 2019 in advance of losing capacity during the
construction of a larger multi-storey car park in Car Park A and the development of a new
Engineering Services facility to allow for the former facility to be converted into regional
aircraft stands.
The 2020 financial year is forecast to be a significant year for Auckland Airport in terms
of capital expenditure, with a strong lift in aeronautical infrastructure investment, roading
infrastructure and investment property to meet forecast demand. Reflecting this, capital
expenditure for the 2020 financial year is forecast to be between $450 million and
$550 million, with the midpoint of the forecast range shown below.
Category
Forecast 2020
$M
Aeronautical245
Infrastructure and other63
Property development140
Retail13
Car parking39
Total capital expenditure500
15
Financial report

Significant aeronautical projects scheduled in the 2020 financial year include
commencing construction of new taxiway and remote stands to the north and west of
Pier B, finalising the design of a new arrivals facility for the International Terminal,
commencing detailed design on the development of new regional aircraft stands on the
site of the former Engineering Services facility, continued design of the Northern Runway
and undertaking a programme of works at the current Domestic Terminal to ensure that
we have enough capacity to meet demand through to when the new Domestic Jet
Facility opens. The new Domestic Jet Facility programme is complex, with many
interdependencies and requiring considerable enabling works. In 2020, Auckland Airport
will continue to progress its design and commence a number of related enabling
packages.
Key infrastructure projects in 2020 include continuing to progress the design and
execution of enabling works to support the staged delivery of significant upgrades to the
Northern and Southern transport networks. These initiatives will in time deliver new
terminal entry and exit roads, additional capacity on George Bolt Memorial Drive and the
introduction of high occupancy vehicle lanes on SH20B. In addition to these transport
initiatives, we will progress design activity on a critical project to increase supply and
resilience of electricity to the airport precinct and continue to invest in core IT
infrastructure, including significant upgrades to the core network, cybersecurity and
business continuity.
Retail projects planned for 2020 include the construction of an Auckland Airport-owned
Strata Lounge at the Domestic Terminal. This project is scheduled to be delivered in time
for the summer peak, and the lounge will operate using a similar model to that in the
International Terminal.
Property projects planned for 2020 include the continuation of several projects already
underway, including the office and warehouse facility for Foodstuffs and the finalisation
of the Airways office building and warehouse facilities on Timberly Road. In addition,
Auckland Airport will commence the construction of a new warehouse for Interwaste and
will begin works on Hotel 4.
In 2020, Auckland Airport will continue to develop the design and consenting of three new
parking facilities: a large multi-storey car park located in Car Park A and two new Park &
Ride sites, one in the North and one in the South. It is Auckland Airport’s intention that
at least one of these initiatives will move into the construction phase during 2020. All
these initiatives are required over the medium term to enable the larger domestic
integration programme, which will result in domestic jet operations moving into an
integrated International and Domestic Terminal.
Borrowings
As at 30 June 2019, Auckland Airport’s total borrowings were $2,190.4 million, an
increase of $130.1 million on the previous year. The increase in borrowings reflects
additional debt raised during the year to fund capital expenditure and increases in the
fair value of existing debt, mainly owing to reductions in market interest rates and the New
Zealand dollar exchange rate.
All foreign-sourced debt (namely the AMTN and the USPP borrowings) was revalued at
year-end to reflect the change in value due to appreciation in both the United States and
Australian dollars versus the New Zealand dollar, as well as interest rate movements in
their respective markets. USPP debt carrying value increased by $39.7 million and the
AMTN debt carrying value increased by $15.4 million. The exchange rate movements
were matched by an equal and offsetting movement in the fair value of the associated
cross-currency interest rate swaps.
At 30 June 2019, Auckland Airport’s borrowings comprised USPP notes totalling
$631.9 million; AMTN notes totalling $311.7 million; New Zealand fixed rate bonds
totalling $825.0 million; New Zealand floating rate bonds totalling $150.0 million; drawn
bank facilities totalling $180.0 million and commercial paper totalling $91.8 million.
Short-term borrowings with a maturity of one year or less accounted for $441.8 million,
or 20.2%, of total borrowings. This was an increase on the previous year’s
$166.8 million. Current debt is made up of $91.8 million of commercial paper, a
$100 million bank facility that matures in October 2019, a $100 million fixed rate bond
16
Auckland International Airport Limited

that matures in December 2019 and a $150.0 million floating rate bond that matures in
April 2020.
As at 30 June 2019, Auckland Airport had total bank facilities of $554.0 million, of which
$180.0 million was drawn and $374.0 million was available in standby capacity. Total
bank facilities included two fully drawn facilities with Bank of Tokyo totalling
$150.0 million, a fully drawn $30.0 million Bank of China facility and undrawn standby
facilities of $100.0 million from ANZ, $80.0 million from BNZ, $30.0 million from China
Construction Bank, $94.0 million from Commonwealth Bank of Australia and
$70.0 million from Mizuho Bank.
The ANZ standby facility supports our commercial paper programme, which had a
balance of $91.8 million as at 30 June 2019, and provides liquidity support for general
working capital. As the commercial paper is supported by the bank facility, for the
purpose of the following debt maturity profile chart as at 30 June 2019, commercial
paper is classified as falling into the ‘1-3 years’ bracket, matching the maturity of the
supporting ANZ facility.
Borrowings by category
Debt maturity profile at 30 June 2019
Auckland Airport manages its exposure to financial risk on a prudent basis. This is
achieved by spreading borrowings across various roll-over and maturity dates, and
entering into financial instruments, such as interest rate swaps, in accordance with
defined treasury policy parameters.
In the past year, we managed the impact of interest rate fluctuations by maintaining a
policy-mandated level of fixed-rate borrowings. Further details on Auckland Airport’s
financial risk management objectives and policies are set out in note 18.4 of the financial
statements.
17
Financial report

Key credit metrics20192018% change
Debt/Debt + market value of equity15.5%20.3%
Debt/EBITDAFI3.63.8(5.3)
Funds from operations interest cover5.45.08.0
Funds from operations to net debt18.6%18.4%1.1
Weighted average interest cost4.28%4.24%
Average debt term to maturity4.124.93(16.4)
Percentage of fixed borrowings60.1%54.7%
Credit rating
As at 30 June 2019, Standard & Poor’s long-term credit rating of Auckland Airport was
‘A- Stable’ and the short-term credit rating was ‘A2’. Standard & Poor’s ‘A- Stable’ rating
reflects the strong ability of Auckland Airport to meet its financial commitments.
Cash flow
Cash flow summary
2019
$M
2018
$M% change
Net cash inflow from operating activities375.9321.217.0
Net cash outflow from investing activities(318.7)(33.5)851.3
Net cash outflow from financing activities(126.6)(226.1)(44.0)
Net (decrease)/increase in cash held(69.4)61.6(212.7)
Net cash inflow from operating activities was $375.9 million in the 2019 financial year, an
increase of $54.7 million, or 17.0%, on the previous financial year, broadly in line with
growth in earnings during the year.
Net cash outflow applied to investing activities was $318.7 million in the 2019 financial
year, an increase of $285.2 million, or 851.3%. The significant increase in investing
outflows in the 2019 financial year was due to the 2018 result including $357.4 million in
proceeds from the sale of our investment in North Queensland Airports. This was partly
offset by a decrease in the purchase of property, plant and equipment during the 2019
financial year ($71.2 million).
Net cash outflow applied to financing activities was $126.6 million in the 2019 financial
year, a decrease of $99.5 million, or 44.0%, on the previous financial year, mainly due to
an increase in net borrowings of $102.9 million.
2019 Returns for shareholders
Dividend policy
Auckland Airport’s dividend policy is to pay 100% of underlying net profit after tax
(excluding unrealised gains and losses arising from a revaluation of property or treasury
instruments and other one-off items), noting that, in special circumstances, the directors
may consider the payment of ordinary dividends above or below this level, subject to the
company’s cash flow requirements, forecast credit metrics and outlook at the time. The
dividend policy is reviewed annually.
2019 dividend
The final dividend for the year ending 30 June 2019 is 11.25 cents per share compared
to the final dividend of 11.00 cents per share in the previous financial year, an increase
of 2.3% on the prior year.
The 2019 final dividend will be paid on 18 October 2019 to shareholders on the register
at the close of business on 4 October 2019. The dividend will carry full imputation credits
at the company tax rate of 28%. In addition, the normal supplementary dividend, sourced
from corresponding tax credits available to the company, will be paid to non-resident
shareholders.
18
Auckland International Airport Limited

Distribution history
Share price performance and total shareholder returns
Auckland Airport has seen significant share price uplift in the year to 30 June 2019, with
its share price increasing from $6.78 as at 30 June 2018 to $9.85 as at 30 June 2019.
Total shareholder return, including share price movement and dividends relating to the
2019 financial year, was 48.6%.
Five-year compound average total shareholder return
Share price
opening
Share price
closing
DividendsTotal returnAverage
annual
shareholder
return
$$cps$%
1 July 2014 to 30 June 20193.909.8596.606.9222.6%
19
Financial report

Financial statements
FOR THE YEAR ENDED 30 JUNE 2019
20
Auckland International Airport Limited

Consolidated income statement
FOR THE YEAR ENDED 30 JUNE 2019
20192018
Notes
$M$M
Income
Airfield income127.6122.1
Passenger services charge185.1179.1
Retail income5225.8190.6
Rental income5107.897.6
Rates recoveries6.76.0
Car park income64.261.0
Interest income1.82.2
Other income24.425.3
Total income
743.4683.9
Expenses
Staff559.157.9
Asset management, maintenance and airport operations81.169.5
Rates and insurance16.113.7
Marketing and promotions12.713.8
Professional services and levies8.611.1
Other expenses511.011.5
Total expenses
188.6177.5
Earnings before interest expense, taxation, depreciation, fair value adjustments and
investments in associates (EBITDAFI)
554.8506.4
Share of profit of associates and joint venture88.216.7
Gain on sale of associate-297.4
Derivative fair value decrease18.2(0.6)(0.7)
Property, plant and equipment fair value revaluation11(a)(3.8)-
Investment property fair value increase12254.0152.2
Earnings before interest, taxation and depreciation (EBITDA)
812.6972.0
Depreciation11(a)102.288.9
Earnings before interest and taxation (EBIT)
710.4883.1
Interest expense and other finance costs578.577.2
Profit before taxation
631.9805.9
Taxation expense7(a)108.4155.8
Profit after taxation attributable to owners of the parent
523.5650.1
CentsCents
Earnings per share
Basic and diluted earnings per share1043.4054.31
The notes and accounting policies on pages 27 to 69 form part of, and are to be read in conjunction with, these financial statements.
21
Financial statements

Consolidated statement of comprehensive income
FOR THE YEAR ENDED 30 JUNE 2019
20192018
Notes
$M$M
Profit for the year
523.5650.1
Other comprehensive income
Items that will not be reclassified to the income statement
Net property, plant and equipment revaluation movement11(a), 16(ii)87.61,189.6
Tax on the property, plant and equipment revaluation reserve16(ii)(24.6)-
Movement in share of reserves of associates8, 16(vi)-8.0
Items that will not be reclassified to the income statement
63.01,197.6
Items that may be reclassified subsequently to the income statement:
Cash flow hedges
Fair value losses recognised in the cash flow hedge reserve16(iv)(47.1)(9.5)
Realised losses transferred to the income statement16(iv)1.62.9
Tax effect of movements in the cash flow hedge reserve16(iv)13.30.3
Total cash flow hedge movement(32.2)(6.3)
Movement in cost of hedging reserve16(v)(4.8)-
Tax effect of movement in cost of hedging reserve16(v)2.3-
Movement in share of reserves of associates8, 16(vi)-0.4
Movement in foreign currency translation reserve-0.8
Items that may be reclassified subsequently to the income statement
(34.7)(5.1)
Total other comprehensive income
28.31,192.5
Total comprehensive income for the year, net of tax attributable to the owners of the parent
551.81,842.6
The notes and accounting policies on pages 27 to 69 form part of, and are to be read in conjunction with, these financial statements.
22
Auckland International Airport Limited

Consolidated statement of changes in equity
FOR THE YEAR ENDED 30 JUNE 2019
Issued
and
paid-up
capital
Cancelled
share
reserve
Property,
plant
and
equipment
revaluation
reserve
Share-
based
payments
reserve
Cash
flow
hedge
reserve
Cost of
hedging
reserve
Share of
reserves
of
associates
Foreign
currency
translation
reserve
Retained
earningsTotal
Notes
$M$M$M$M$M$M$M$M$M$M
For the year ended
30 June 2019
At 30 June 2018
404.2(609.2)4,913.91.3(38.2)-28.8-981.35,682.1
Adjustment on
adoption of NZ IFRS 9----3.3(3.3)----
At 1 July 2018
404.2(609.2)4,913.91.3(34.9)(3.3)28.8-981.35,682.1
Profit for the year--------523.5523.5
Other comprehensive
income--63.0-(32.2)(2.5)---28.3
Total comprehensive
income
--63.0-(32.2)(2.5)--523.5551.8
Reclassification to
retained earnings16(ii)--(8.1)-----8.1-
Shares issued1564.0--------64.0
Long-Term Incentive
Plan16(iii)---0.1-----0.1
Dividend paid9--------(265.1)(265.1)
At 30 June 2019
468.2(609.2)4,968.81.4(67.1)(5.8)28.8-1,247.86,032.9
For the year ended
30 June 2018
At 1 July 2017
348.3(609.2)3,729.01.1(31.9)-20.4(9.3)580.64,029.0
Profit for the year--------650.1650.1
Other comprehensive
income--1,189.6-(6.3)-8.40.8-1,192.5
Total comprehensive
income
--1,189.6-(6.3)-8.40.8650.11,842.6
Reclassification to
retained earnings16(ii)--(4.7)-----4.7-
Reclassification to gain
on sale of associate-------8.5-8.5
Shares issued1555.9--------55.9
Long-Term Incentive
Plan16(iii)---0.2-----0.2
Dividend paid9--------(254.1)(254.1)
At 30 June 2018
404.2(609.2)4,913.91.3(38.2)-28.8-981.35,682.1
The notes and accounting policies on pages 27 to 69 form part of, and are to be read in conjunction with, these financial statements.
23
Financial statements

Consolidated statement of financial position
AS AT 30 JUNE 2019
20192018
Notes
$M$M
Non-current assets
Property, plant and equipment11(a)6,577.16,378.0
Investment properties121,745.41,425.6
Investment in associates and joint venture8105.7104.4
Derivative financial instruments18162.6110.4
8,590.88,018.4
Current assets
Cash and cash equivalents1337.3106.7
Inventories-0.2
Trade and other receivables1469.071.5
106.3178.4
Total assets
8,697.18,196.8
The notes and accounting policies on pages 27 to 69 form part of, and are to be read in conjunction with, these financial statements.
24
Auckland International Airport Limited

20192018
Notes
$M$M
Shareholders’ equity
Issued and paid-up capital15468.2404.2
Reserves164,316.94,296.6
Retained earnings1,247.8981.3
6,032.95,682.1
Non-current liabilities
Term borrowings18.11,748.61,893.5
Derivative financial instruments1888.438.9
Deferred tax liability7(c)265.3251.4
Other term liabilities1.91.8
2,104.22,185.6
Current liabilities
Accounts payable and accruals17102.4148.0
Taxation payable15.312.9
Derivative financial instruments18-1.3
Short-term borrowings18.1441.8166.8
Provisions210.50.1
560.0329.1
Total equity and liabilities
8,697.18,196.8
These financial statements were approved and adopted by the Board on 22 August 2019.
Signed on behalf of the Board by
Patrick Strange
Director, Chair of the Board
Julia Hoare
Director, Chair of the Audit and Financial Risk Committee
The notes and accounting policies on pages 27 to 69 form part of, and are to be read in conjunction with, these financial statements.
25
Financial statements

Consolidated cash flow statement
FOR THE YEAR ENDED 30 JUNE 2019
20192018
Notes
$M$M
Cash flow from operating activities
Cash was provided from:
Receipts from customers756.0674.0
Interest received2.02.0
758.0676.0
Cash was applied to:
Payments to suppliers and employees(203.6)(180.5)
Income tax paid(101.1)(96.4)
Interest paid(77.4)(77.9)
(382.1)(354.8)
Net cash flow from operating activities
6375.9321.2
Cash flow from investing activities
Cash was provided from:
Proceeds from sale of investment in associate-357.4
Proceeds from sale of investment properties22(a)1.5-
Dividends from associate89.215.4
10.7372.8
Cash was applied to:
Purchase of property, plant and equipment(239.1)(310.3)
Interest paid - capitalised11(a), 12(7.0)(8.8)
Expenditure on investment properties(81.0)(77.1)
Investment in joint venture8(2.3)-
Costs related to sale of investment in associate-(10.1)
(329.4)(406.3)
Net cash flow applied to investing activities
(318.7)(33.5)
Cash flow from financing activities
Cash was provided from:
Increase in borrowings18.1150.0301.1
150.0301.1
Cash was applied to:
Decrease in borrowings18.1(75.0)(329.0)
Dividends paid9, 15(201.6)(198.2)
(276.6)(527.2)
Net cash flow applied to financing activities
(126.6)(226.1)
Net (decrease)/increase in cash held(69.4)61.6
Opening cash brought forward106.745.1
Ending cash carried forward
1337.3106.7
The notes and accounting policies on pages 27 to 69 form part of, and are to be read in conjunction with, these financial statements.
26
Auckland International Airport Limited

27
Financial statements
Notes and accounting
policies
FOR THE YEAR ENDED 30 JUNE 2019

1. Corporate information
Auckland International Airport Limited (the company or Auckland
Airport) is a company established under the Auckland Airport Act
1987 and was incorporated on 20 January 1988 under the
Companies Act 1955. The original assets of Auckland Airport were
vested in the company on 1 April 1988 and 13 November 1988
by an Order in Council of the New Zealand Government. The
company commenced trading on 1 April 1988. The company was
reregistered under the Companies Act 1993 on 6 June 1997. The
company is an FMC reporting entity under Part 7 of the Financial
Markets Conduct Act 2013.
The financial statements presented are for Auckland Airport and its
wholly owned subsidiaries, associates and joint venture (the
group). There are six subsidiaries in the group. Auckland Airport
Limited holds the group’s investment in Queenstown Airport in
New Zealand. Auckland Airport Holdings (No. 2) Limited holds the
group’s investment in the Tainui Auckland Airport Hotel Limited
Partnership, which operates the Novotel hotel at Auckland Airport
and the Tainui Auckland Airport Hotel 2 Limited Partnership, which
is constructing a new Pullman hotel at Auckland Airport. A third
subsidiary, Auckland Airport Holdings Limited, held the group’s
investment in North Queensland Airports (Cairns Airport and
Mackay Airport in Queensland, Australia) prior to the investment
being sold on 7 March 2018. A fourth subsidiary, Auckland Airport
Holdings (No.3) Limited, wholly owns Ara Charitable Trustee
Limited, which operates the Ara Charitable Trust (the Auckland
Airport Jobs and Skills Hub). The other two subsidiaries are the
Auckland International Airport Limited Share Purchase Plan and the
Auckland Airport Limited Executive Long-Term Incentive Plan,
which are consolidated because the company has control of the
plans (refer note 23).
All the subsidiaries are incorporated in New Zealand.
Auckland Airport provides airport facilities, supporting
infrastructure and aeronautical services in Auckland, New Zealand.
The group earns revenue from aeronautical activities, on-airport
retail concessions and car parking facilities, stand-alone
investment properties and other charges and rents associated with
operating an airport.
These financial statements were authorised for issue in accordance
with a resolution of the directors on 22 August 2019.
2
. Summary of significant accounting policies
(a) Basis of preparation
Statutory base
These financial statements have been prepared in accordance with
the requirements of Part 7 of the Financial Markets Conduct Act
2013 and the NZX Main Board and Debt Market Listing Rules.
Measurement base
The financial statements have been prepared on a historical cost
basis, except for investment properties, land, buildings and
services, runway, taxiways and aprons, infrastructural assets and
derivative financial instruments, which have been measured at fair
value.
When the group applies fair value hedges to borrowings, the
carrying value of the borrowings are adjusted for fair value changes
attributable to the risk being hedged.
Presentation currency
These financial statements are presented in New Zealand dollars,
and all values are rounded to the nearest million dollars ($M) and
one decimal point unless otherwise indicated.
(b) Statement of compliance
The financial statements have been prepared in accordance with
generally accepted accounting practice in New Zealand (NZ
GAAP). They comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS) and other applicable
Financial Reporting Standards as appropriate for profit-oriented
entities. These financial statements also comply with International
Financial Reporting Standards (IFRS).
(c) New accounting standards and
interpretations
The accounting policies set out in these financial statements are
consistent for all periods presented except as identified below. The
following accounting standards have been adopted in the
preparation of these financial statements.
NZ IFRS 9 Financial Instruments is effective for annual periods
beginning on or after 1 January 2018. NZ IFRS 9 addresses the
classification and measurement of financial assets and financial
liabilities and replaces the NZ IAS 39 Financial Instruments:
Recognition and Measurement requirements for hedge
accounting. Auckland Airport has applied NZ IFRS 9
retrospectively but has elected not to restate comparative
information as there is no material quantitative impact on the
financial statements. Changes in the fair value of the cost to
convert foreign currency to New Zealand dollars (NZD) of cross-
currency interest rate swaps are now separately accounted for as
a cost of hedging and recognised within a new reserve within
equity (cost of hedging reserve). The implementation of NZ IFRS 9
has also resulted in changes to the group’s accounting policies
(refer note 2(j), note 16 and note 18).
NZ IFRS 15 Revenue from Contracts with Customers is effective
for annual reporting periods beginning on or after 1 January 2018.
It replaces the revenue recognition guidance in NZ IAS 18 Revenue
and NZ IAS 11 Construction Contracts. NZ IFRS 15 establishes
a five-step model for revenue recognition, which is centred on
identifying the performance obligations in a contract and
recognising revenue when each performance obligation is satisfied.
Auckland Airport has considered the new guidance and identified
the main performance obligations for each of its key revenue
streams. For all revenue streams in scope of NZ IFRS 15 there
were no changes in timing of revenue recognition. The new
standard does not apply to rental income, which is recognised
under NZ IAS 17 Leases.
28
Notes and accounting policies CONTINUED
FOR THE YEAR ENDED 30 JUNE 2019
Auckland International Airport Limited

Application of these standards by the group has not materially
affected any of the amounts recognised in these financial
statements or the disclosures.
NZ IFRS 16 Leases is effective for annual periods beginning on or
after 1 January 2019. NZ IFRS 16 sets out the principles for the
recognition, measurement, presentation and disclosure of leases.
The accounting requirements for lessors are substantially the same
as those in NZ IAS 17. The group reviewed leases where the group
is the lessor and has concluded that these remain as operating
leases under NZ IFRS 16. The group also reviewed leases where
the group is the lessee and has concluded that there is no material
impact on the financial statements. The group will apply NZ IFRS
16 from 1 July 2019.
(d) Basis of consolidation
The consolidated financial statements incorporate the assets,
liabilities and results of the subsidiaries over which the group has
control.
On consolidation, all intercompany balances and transactions,
income and expenses, and profit and losses resulting from
transactions within the group have been eliminated in full.
(e) Investments in associates and joint venture
The equity method of accounting is used for the three investments
over which the group has significant influence but not a controlling
interest.
Under the equity method, the investment in the associate is carried
at cost plus post-acquisition changes in the group's share of net
assets of the associate less impairment losses. Goodwill relating
to the associate is included in the carrying amount of the
investment.
The group's share of the associates’ post-acquisition profits or
losses is recognised in the income statement, and its share of
post-acquisition movements in reserves and the property, plant
and equipment revaluation reserve is recognised in other
comprehensive income and accumulated as a separate
component of equity in the share of reserves of associates. The
post-acquisition movements are included after adjustments to
align the accounting policies with those of the group.
(f) Property, plant and equipment
Properties held for airport operations purposes are classified as
property, plant and equipment.
Property, plant and equipment are initially recognised at cost.
Vehicles, plant and equipment are carried at cost less accumulated
depreciation and impairment losses.
Land, buildings and services, runway, taxiways and aprons and
infrastructural assets are carried at fair value, as determined by an
independent registered valuer, less accumulated depreciation and
any impairment losses recognised after the date of any revaluation.
Land, buildings and services, runway, taxiways and aprons and
infrastructural assets acquired or constructed after the date of the
latest revaluation are carried at cost, which approximates fair value.
Revaluations are carried out with sufficient regularity to ensure that
the carrying amount does not differ materially from fair value at the
balance date.
Revaluations
Revaluation increases are recognised in other comprehensive
income and accumulated as a separate component of equity in the
property, plant and equipment revaluation reserve, except to the
extent that they reverse a revaluation decrease of the same asset
previously recognised in the income statement, in which case the
increase is recognised in the income statement.
Revaluation decreases are recognised in the income statement,
except to the extent that they offset a previous revaluation increase
for the same asset, in which case the decrease is recognised in
other comprehensive income and accumulated as a separate
component of equity in the property, plant and equipment
revaluation reserve.
Accumulated depreciation as at the revaluation date is eliminated
against the gross carrying amounts of the assets and the net
amounts are restated to the revalued amounts of the assets.
Depreciation
Depreciation is calculated on a straight-line basis to allocate the
cost or revalued amount of an asset, less any residual value, over
its estimated useful life.
The estimated useful lives of property, plant and equipment are as
follows:
Land (including reclaimed land)Indefinite
Buildings and services5 - 50 years
Infrastructural assets5 - 80 years
Runway, taxiways and aprons12 - 40 years
Vehicles, plant and equipment3 - 10 years
(g) Investment properties
Investment properties are properties held by the group to earn
rental income, for capital appreciation or both (including property
being constructed or developed for future use as investment
property). Land held for a currently undetermined future use is
classified as investment property.
Investment properties are measured initially at cost and then
subsequent to that initial measurement are stated at fair value. To
determine fair value, Auckland Airport commissions investment
property valuations at least annually by independent valuers. Gains
or losses arising from changes in the fair values of investment
properties are recognised in the income statement.
If the fair value of investment property under construction cannot
be reliably determined but it is expected that the fair value of the
property can be reliably determined when construction is
complete, then investment property under construction will be
measured at cost until either its fair value can be reliably determined
or construction is complete.
Transfers are made to investment property when there is a change
in use. This may be evidenced by ending of owner occupation,
commencement of an operating lease to another party or
commencement of construction or development for future use as
investment property.
29
Financial statements