AIA – FY20 Annual Results

Media release | 20 August 2020

FY20 Annual Results: Rapid response
mitigates historic impact of COVID-19

Auckland Airport today announced its financial results for the 12 months ended 30
June 2020.

Auckland Airport Chair Patrick Strange said: “The last six months have been the
most challenging of Auckland Airport’s 54-year history. The global pandemic and
the extremely difficult aviation and tourism operating conditions we have seen over
the past six months are far from over.

“But we have worked quickly to respond with our sights set firmly on our future. The
long-term fundamentals of our business remain strong and we have taken steps to
ensure we remain resilient and well positioned for a recovery as demand for
international travel returns.”

Mr Strange said the year's results were skewed by a huge drop in passenger
numbers after a solid first seven months of the year.

Key performance data for the full year includes:

• Total number of passengers decreased to 15.5 million, down 26.5% on the
previous year. International passenger numbers (including transits) were 8.5
million while domestic passenger numbers were 7 million
• Operating EBITDAFI was down by 53.1% to $260.4 million
• Reported profit after tax was down 63% to $193.9 million
• Underlying profit after tax was down 31.4% to $188.5 million
• Earnings per share was down 64.5% to 15.2 cents per share and underlying
earnings per share was also down 34.7% to 14.7 cents per share

• Revenue was down 23.7% to $567 million
• No final dividend will be paid

Chief Executive Adrian Littlewood said the 2020 financial year had been
dramatically split in two.

“The first half of the year saw Auckland Airport embark upon a series of ambitious
infrastructure projects which were transforming our precinct into an airport of the
future. The second half of the financial year brought a global pandemic and
international tourism in New Zealand to a virtual halt.

“Throughout this time, we have remained focused on the health and safety of our
people, passengers and other front line staff, working with border agencies and the
Ministry of Health to protect New Zealand against the spread of COVID-19.

“We have also played a critical role in keeping New Zealand connected to the world,
continuing to maintain safe and secure airfield operations as the pandemic took
hold. Our team is proud to have supported 115 repatriation flights and we have
worked alongside our airline customers to keep trade links alive, ensuring the
ongoing flow of critical cargo supplies and the export of high-value Kiwi goods.”

Mr Littlewood said that due to the significant fall in passenger numbers and the
scaling back of the organisation’s infrastructure development programme,
Auckland Airport had made the difficult decision to reduce the size of its workforce.
As at 30 June 2020 these changes had resulted in a 25% reduction in the number
of staff and contractors employed by Auckland Airport.

“It goes without saying that it’s been an extraordinarily difficult time for our team.
Unfortunately, we’re not alone and recognise that many of the organisations that
operate alongside us at Auckland Airport have suffered major job losses, including
our retail and airline partners and companies that supply services at the airport.”

Despite the challenging operating conditions, Mr Littlewood said Auckland Airport
remained focused on the future, doing all it could to drive the recovery of the
business and assist New Zealand to manage through the pandemic. In April,

Auckland Airport carried out a successful $1.2 billion equity raise to reinforce the
company’s balance sheet during this period of uncertainty, and a new strategic plan
- Respond, Recover, Accelerate - has been developed.

“In May, with flight movements at an all-time low and with the support of our airline
partners and other stakeholders, we brought forward the planned $26 million
runway pavement replacement works, temporarily shortening the runway by 1.1km
during construction to renew 280 sections of pavement in the eastern touchdown
zone. This work was successfully completed on budget in August 2020.”

In contrast to its travel-linked businesses, Auckland Airport’s investment property
business performed strongly throughout the 2020 financial year. This resulted in
the investment property annual rent roll increasing 4% to $104 million and the
portfolio value rising 17% to $2.04 billion during the period.

“Despite the uncertainty created by the outbreak of COVID-19 we have maintained
the momentum of our property business. We continue to field enquiries from high-
quality tenants and close out significant contracts, cementing our position as a
leader in industrial and commercial sectors.

“As we look to the 2021 financial year, we continue to face significant uncertainty
on the timing of Auckland Airport’s recovery. Our financial performance is strongly
linked to international arrivals and departures, and while there is no doubt
international travel will recover, there is not yet any consensus how and when that
will unfold.

“With so much uncertainty, we think it prudent at this time to adopt more
conservative planning assumptions than either the International Air Travel
Association (IATA) or Standard & Poor’s, which are forecasting a full recovery of
international travel in approximately three years. At this stage, we think a full
recovery could take longer. However, we are hopeful that domestic travel will return
to normal comfortably within two years. With Australia being our largest
international market, we are also hopeful that short-haul Tasman and Pacific Island
travel will resume sometime in 2021, with a full recovery of both these markets
occurring before long-haul international travel returns to normal.

“Because of the high uncertainty around the recovery of international passengers
and its strong impact on our commercial performance, combined with the return of
nationwide restrictions on people movement due to COVID-19 the company has
suspended underlying earnings guidance for the 2021 financial year. We will
reassess this decision at the October annual meeting and again at our interim
results in February 2021.”

Mr Littlewood said Auckland Airport’s capital investment in the 2021 financial year
will be focused on advancing existing roading infrastructure projects; delivering
core airfield renewals such as slab replacement and apron works; upgrades to the
baggage system; and completing pre-leased property developments. Capital
expenditure for the 2021 financial year is expected to be between $250 million and
$300 million.

“Auckland Airport will continue to play a critical role in connecting New Zealand to
the world, and this is only possible thanks to the support of our investors and the
ongoing commitment of our people, who have done us and New Zealand proud
throughout this crisis,” said Mr Littlewood.

ENDS

For further information please contact:

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


Investors:
Stewart Reynolds
Head of Strategy, Planning and Performance
+64 27 511 9632
stewart.reynolds@aucklandairport.co.nz

---

Annual Report 2020
Respond
Recover
Accelerate

Respond
Unprecedented events that called for
a rapid response to best protect our travellers, our people,
precinct workers and our business.
Recover
Considered and concise decisions made
to reset our business and ensure we are best placed
to recover and manage through uncertainty.
Accelerate
Ready to accelerate when the time is right.
We’re aligning our organisation to be best placed for a rapid
restart to support New Zealand’s future prosperity.
Photography – Annual Report 2020
Jordan Tan, Richard Maher, Brett Phibbs,
Ollie Dale and Auckland Airport Communications team

Facing unprecedented challenges as
COVID-19 impacted aviation and tourism,
Auckland Airport took quick action to
protect people’s health and safety and to
keep New Zealand connected to the world.
Looking after our retailers
Since the outset of the crisis, we have
worked closely with our retail partners
and tenants on a case-by-case basis
to provide support.
Infrastructure reset
Auckland Airport moved swiftly
to re-evaluate our infrastructure
programme, cancelling or deferring
projects with a projected total
completion value of more than
$2 billion.
Runway maintenance
The reduction in air travel created
an opportunity to bring forward
scheduled maintenance work on
the touchdown zone at the eastern
end of the runway.
Keeping people safe
Despite a significant fall in passenger
numbers, Auckland Airport’s duty of
the care to look after staff and guests
continued to be our top priority. From
the very first days of the pandemic,
we supported public-health workers in
the international terminal and increased
cleaning in high-touch areas.
We brought in measures to encourage
social-distancing and spread key health
messaging across both terminals.
Our team played
a leadership role
in supporting 115
successful repatriation
flights to and from
New Zealand
As fleets were
grounded by border
restrictions and a
fall in passenger
demand our
operations team
supported our airline
partners in parking
planes on the airfield
Respond
Airport Emergency
Services crew
members, like
Lorna Biggam,
were on hand
to help guests
throughout the
COVID-19 outbreak
Annual Report 2020 3

As the world moves past the immediate
impact of the pandemic, Auckland Airport
will have a key role in charting the path to
recovery for New Zealand’s aviation and
tourism sectors and the wider economy.
Triggering infrastructure
Auckland Airport’s long-term vision
to create an airport of the future
remains. We continue to prioritise
core aeronautical projects and
ensure we are positioned strongly
for a successful restart of our
infrastructure development programme.
Safe-travel bubbles
Since the earliest days of the pandemic,
Auckland Airport has led a programme of
work to propose how New Zealand could
establish safe travel bubbles with other
countries. Our team played a key role in
co-ordinating a group of 40 experts from
airlines, government border agencies
and the Ministry of Health to develop
plans for how a safe air corridor could
be established, when the Government
decides the time is right.
See video – RNZ Checkpoint
Maintaining global connections
We’ve worked hard for many years
to build a global network connecting
Auckland to the world and we
will work just as hard to rebuild it.
The airport’s role as a cargo hub
through the crisis has proved critical
to maintaining airlinks and nurturing
aviation’s recovery.
Resilient portfolio
Our strategy of diversifying into
property continues to provide resilience
and support our recovery. The new
Foodstuffs NZ headquarters is on track
for completion in January 2021, and its
office building was recently certified as
5-Star Green.
The New Zealand story
With international border restrictions
in place, Kiwis were out exploring their
own country during the July school
holidays, making Auckland Airport one
of the busiest airports in Australasia.
We’ll continue to support local tourism
and assist in the development of future
services.
Recover
Safe and secure
Everyone travelling through Auckland
Airport has a right to do so with a sense
of safety and security. That’s why we’ve
developed a plan to create separate
zones in the international terminal for
different categories of passengers,
helping to enable future travel bubbles.
5-Star
Green build – Foodstuffs NZ
4 Annual Report 2020Annual Report 2020 5

For many years Auckland Airport has
been proud to play a leading role in
New Zealand’s economic prosperity,
connecting our people and businesses
with the world. We continue to work
for New Zealand. When the time is
right we will be ready to forge ahead,
growing our country’s success in
travel, trade and tourism.
Accelerate
Airlines
Prior to the pandemic, 29 airlines
were flying into Auckland Airport,
connecting the city to 43 international
destinations. Our team has worked
hard alongside our airline partners to
develop and promote these new routes.
As economies and airlines return to
strength, we will do so again.
Retail
As part of providing the best possible
experience for travellers, Auckland
Airport has attracted some of the
world’s leading brands to our retail
space and we have developed strong
customer relationships. We will
continue to innovate and the excellent
retail experience travellers have come
to expect will remain part of their
future journeys.
Tourism
New Zealand has always been among
the most desirable destinations in the
world and we know it will continue to
be an attractive place to visit in a post
COVID-19 world.
6 Annual Report 2020Annual Report 2020 7

Adrian Littlewood
Chief Executive
Patrick Strange
Chair
Nau mai &
welcome
The last six months have been
the most challenging of Auckland
Airport’s 54-year history. The
world is in the grip of a global
pandemic and the extremely
difficult aviation and tourism
operating conditions we have
seen over the past six months
are far from over.
But during this time of crisis, we
have worked quickly to respond with
our sights set firmly on our future.
The long-term fundamentals of our
business remain strong and we have
taken steps to ensure we remain
resilient and well positioned for a
recovery, accelerating into growth as
demand for international travel returns.
At the outset, we would like to thank
our investors for their continuing
support as we navigate through this
crisis. We do so with the confidence
that trade will continue to flow between
New Zealand and overseas, that
our country remains an extremely
attractive place to visit and that
travel will recover.
For now, we are focused on what’s
most important in the immediate term:
the health and safety of our people,
workers and visitors to the airport
precinct, maintaining New Zealand’s
essential air connectivity to the world
and to our regions through domestic
travel. Safety and security have always
been at the heart of our operation and
throughout this time of crisis our people,
especially those on the frontline, have
worked tirelessly to keep everyone safe
and to protect New Zealand from the
spread of COVID-19. The strength of our
relationships with border agencies,
airlines and airport partners have served
us well, allowing us to collaborate and
implement changes, often at very short
notice. From additional cleaning regimes
in the terminals, to developing a
comprehensive and evolving plan to
protect our staff and airport workers we
continue to do all we can to help
everyone travel safely and with
confidence.
The emerging pandemic left Kiwis
stranded overseas and foreign visitors
unable to return home from
New Zealand. Our team played a
leadership role in supporting 115
successful repatriation flights to and from
New Zealand, transporting more than
22,700 people home across the globe
from February to the end of July. We
have also maintained our close
relationships with airlines to keep trade
links alive, ensuring the ongoing flow of
critical cargo supplies and the export of
high-value Kiwi goods.
Just as we took steps to support trade
and repatriation flights, we moved
decisively to secure the future of our
organisation as the pandemic impacted
our business:
During this time of crisis,
we have worked quickly
to respond with our sights
set firmly on our future. The
long-term fundamentals of
our business remain strong
and we have taken steps to
ensure we remain resilient
and well positioned for
a recovery.
• In April, shareholders strongly
supported us in the successful equity
raise of $1.2 billion, reinforcing our
balance sheet and ensuring we
remain well capitalised during this
period of uncertainty and are
positioned for a post-COVID-19
recovery
• We secured significant support from
our lenders, including extending the
maturity dates of our bank loans and
confirming covenant waivers from our
banking group and United States
Private Placement (USPP) lenders until
31 December 2021
• We implemented a range of measures
to manage cash flow, including
cancelling the interim dividend for the
2020 financial year and suspending all
future dividends while the debt
covenant waivers are in place. We
also reduced the remuneration of our
directors and executives to 80% and
lowered most other employees’ hours
and salaries to 80%
• We applied strong cost control and
eliminated discretionary spending
• We cancelled or deferred
infrastructure projects with a projected
total completion value of more than
$2 billion until we have more certainty
about future market conditions and
are again able to support higher
capital expenditure levels and
associated borrowings. These
projects include the second runway,
the Domestic Jet Hub, a multi-storey
car park, Park & Ride South and the
international arrivals expansion project
Prior to the pandemic we had a strong
start to the 2020 financial year with
solid passenger volumes in the six
months to 31 December 2019.
However, New Zealand’s border is now
tightly restricted and passenger volumes
are currently at a fraction of what they
have been in previous years. In the 2020
financial year there was a 26.5% decline
in overall passenger numbers to
15.5 million in comparison with the
year before, with domestic passenger
numbers falling at a similar rate to
7 million during the period. With borders
closed around the world, the number
of international carriers flying scheduled
passenger services to New Zealand fell
from 29 in March to four as at 30 June
2020, contributing to a 26.4% fall in
international passenger numbers
(including transits) in the 2020 financial
year to 8.5 million. For the month
of June 2020, domestic passenger
numbers were down 71% on last year
and international passengers down 97%.
This significant fall in passenger
numbers, combined with the scaling
back of our infrastructure development
programme, meant we had to make the
difficult decision to reduce the size of
our workforce in line with our new
operating reality. While ensuring we
make no compromises on the safety
8 Annual Report 2020Annual Report 2020 9

and security of our operation, as at
30 June 2020 these changes had
resulted in a 25% reduction in the
number of staff and contractors we
employ. We recognise the pandemic
has also impacted many of our business
partners and other organisations
operating at Auckland Airport, including
those in retail, aviation and construction,
with many job losses.
Despite the current challenging operating
conditions, we remain focused on the
path ahead, doing all we can to drive
the recovery of our business and assist
the industry to manage throughout
the pandemic.
Since the earliest days of the pandemic,
Auckland Airport has led the charge on
the development of a comprehensive
plan to reopen our border to other
low-risk countries when it becomes
safe. Co-ordinated via the Australia
New Zealand Leadership Forum, we
helped bring together and support a
team of 40 experts in the development
of a blueprint for the future safe
reopening of quarantine-free travel
between New Zealand and Australia,
when our respective governments
decide it is appropriate to do so.
We continue to consider systems
and approaches for the safe and
gradual reopening of borders with
other low risk countries.
With flight movements at an all-time
low, we have also taken opportunities
to advance core asset replacement,
maintenance and resilience projects
to ensure we emerge in the strongest
position possible beyond COVID-19.
We are investing in our core roading
network, upgrading the southbound
corridor of George Bolt Memorial Drive,
adding a high occupancy vehicle lane
and new underground utilities. In May,
with the support of our key airline
partners and other stakeholders, we
brought forward the planned $26 million
runway pavement replacement works,
temporarily shortening the runway by
1.1km during construction to renew
280 sections of pavement in the eastern
touchdown zone. This work was
successfully completed on budget
in August 2020.
We also continue to consider
opportunities and advance new
developments in investment property,
an area of the business which has
performed strongly even during the
outbreak of COVID-19. This resulted in
the investment property annual rent roll
increasing 4% to $104 million and the
portfolio value rising 17% to $2.04 billion
in the 2020 financial year.
Overall, Auckland Airport’s financial
results are in line with the challenging
economic conditions we currently face.
In the year to 30 June 2020, revenue
was down 23.7% to $567 million,
with earnings before interest expense,
taxation, depreciation, fair value
adjustments and investments in
associates (EBITDAFI) decreasing
53.1% to $260.4 million.
Reported profit after tax was down 63%
to $193.9 million, underlying net profit
was down 31.4% to $188.5 million and
our underlying earnings per share was
down 34.7% to 14.7 cents for the 2020
financial year. No final dividend will be
paid in line with our covenant waivers.
As we look to the 2021 financial year, we
continue to face significant uncertainty
on the timing of Auckland Airport’s
recovery. Our financial performance is
strongly linked to international arrivals
and departures, and while there is no
doubt that international travel will recover,
there is not yet any consensus how
and when that will unfold.
With so much uncertainty, we think
it prudent at this time to adopt more
conservative planning assumptions
than either the International Air Travel
Association (IATA) or Standard & Poor’s,
which are forecasting a full recovery of
international travel in approximately
three years. At this stage, we think a full
recovery could take longer. However,
we are hopeful that domestic travel will
return to normal comfortably within two
years. With Australia being our largest
international market, we are also hopeful
that short-haul Tasman and Pacific Island
travel will resume sometime in 2021, with
a full recovery of both these markets
occurring before long-haul international
travel returns to normal.
Because of the high uncertainty around
the recovery of international passenger
numbers and its strong impact on our
commercial performance, combined with
the return of nationwide restrictions on
people movement due to COVID-19,
the company has suspended underlying
earnings guidance for the 2021 financial
year. We will reassess this decision at the
October annual meeting and again at our
interim results in February 2021.
Auckland Airport’s capital investment
in the 2021 financial year will be
focused on advancing existing
roading infrastructure projects;
delivering core airfield renewals such
as slab replacement and apron works;
upgrades to the baggage system to
meet compliance requirements; and
completing pre-leased property
developments. Capital expenditure for
the 2021 financial year is expected to be
between $250 million and $300 million.
Underlying net profit
$188.5m
31.4%
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,
dividends are temporarily suspended
while Auckland Airport has financial
covenant waivers in place with our
lenders. This dividend suspension
is expected to span the reporting
periods ending 30 June 2020 to
31 December 2021.
In referring to underlying profits, we
acknowledge our obligation to show
investors how we have derived this
result. The reconciliation between
underlying profit and reported profit
for the current reporting period can
be found on page 41.
Auckland Airport continues to play a
critical role in connecting New Zealand to
the world and in the time of COVID-19
this has never been more important.
We do not yet know the course
of the pandemic, but our long-term
commitment to growing New Zealand’s
success in travel, trade and tourism
remains unchanged and we remain
confident about our future.
Thank you to our community, customers
and investors for your ongoing support
during this very challenging year. Lastly,
we would like to acknowledge the
continued professionalism of our people
who have had to say goodbye to friends
and colleagues and cease working on
infrastructure projects we were all proud
to be delivering for New Zealand. It’s
been a tough year for our team and your
unrelenting hard work and commitment
are hugely appreciated.
Patrick Strange
Chair
Adrian Littlewood
Chief Executive
We also continue to
consider opportunities and
advance new developments
in investment property, an
area of the business which
has performed strongly
even during the outbreak
of COV ID -19.
The EBOS Group development at The Landing Business Park
10 Annual Report 2020Annual Report 2020 11

Revenue
$ 5 6 7. 0 m
23.7%
Domestic
7. 0 m
26.5%
International
7.7m
26.3%
International transits
0.7m
2 7. 4%
Operating
EBITDAFI
$260.4m
5 3 .1%
Reported profit
$193.9m
63%
Underlying profit
$188.5m
31.4%
Dividend per share
–
Underlying earnings
per share
14.7 cents
34.7%
Net capex additions
$370.8
1
m
30.5%
Five-year average annual
shareholder return
8.4%
15.5m
Passengers
2020 /
key numbers
2020 /
key statistics
Health and safety
72%
Employee recordable injury rate
89%
Reporting of safety
observations and hazards
5.9%
Passenger incident rate
Auckland Airport
Community Trust
$351,572
Granted to community projects
by the Auckland Airport Community
Trust to support learning, literacy
and life skills in South Auckland
Direct investment into
community projects
$ 5 6 7,72 2
Invested in our local communities
(including the $351,572 granted
to the Auckland Airport Community
Trust and $216,150 granted
through other Auckland Airport
grant programmes)
Diversity
62.5%
Percentage of female
Board directors
41%
Female senior managers
44
Recorded ethnicities – noting
that not everyone who works
at Auckland Airport chooses
to disclose their ethnicity
Environmental
impact reductions
The below results are in
comparison with our base
year, 2012.
19%
Energy use
per passenger
 by 19% against our target
of 20% by 2020
39%
Waste to landfill
per passenger
 by 39% against our target of
20% reduction by 2020
45%
Carbon emissions per m
2
Our performance in the
12 months to 30 June 2020
Interim 0.0¢Final 0.0¢
1 Net capital expenditure additions after $62.2 million
of write-offs and impairments
12 Annual Report 2020Annual Report 2020 13

In March 2020, Auckland Airport launched
an immediate response to the outbreak of
COVID-19 and the impact travel and border
restrictions would have on the business.
This included a shift away from the successful
Faster, Higher, Stronger strategy we have pursued
for the past seven years. While we are confident we
will return to growth, the global downturn in aviation
and tourism will present ongoing challenges for
Auckland Airport and we need to act decisively.
Our new strategic plan is to Respond to
the pandemic and our new operating reality,
to optimise the organisation to Recover quickly 
and to position ourselves to Accelerate, unlocking
opportunities once the market recovers.
Respond
We worked quickly to stabilise our
organisation following the significant
impact of the pandemic and
subsequent border restrictions, while
continuing to ensure New Zealand’s
air connectivity to the world through
the ongoing safety and security of
our operation. We will do all we can
to protect the ongoing health and
safety of our people, airport workers
and travellers, and are committed to
supporting border agencies and the
government to protect New Zealand
against the spread of COVID-19.
Recover
As we emerge from our initial
response to COVID-19, we will
ensure our organisation is positioned
to advance in our new operating
reality. Collaborating with government
agency stakeholders and our aviation
partners, we will play a critical role
in helping to build the path to
recovery for New Zealand aviation
over the coming years. We will unlock
opportunities as the domestic and
international travel markets begin to
return and restore public confidence
in travel. We know that a fast, efficient
and effective airport makes journeys
better, and we will develop a trigger-
based infrastructure development
plan to identify timing for key
aeronautical projects.
Accelerate
In a post-COVID-19 world, we
will look to accelerate long-term
sustainable growth. We will invest
in the infrastructure New Zealand
needs to grow its success in travel,
trade and tourism, delivering on
our aspirations to build an airport
of the future.
We are working for New Zealand,
creating enduring value for
generations to come.
Arrivals
Departures
Number of international arrivals into
and departures from New Zealand
in the month of May since 1950
Our strategy
0
100
200
300
400
500
600
20202010200019901980197019601950
Number — month of May — ‘000s
Respond
Recover
Accelerate

Month of May
Annual Report 2020 1514Annual Report 2020

Putting
health and
safety first
What we are doing
to keep our people,
workers and
travellers safe
People are what brings our airport
to life – the excitement, anticipation,
and even apprehension of the journey.
We have worked hard to ensure,
whatever the circumstances, everyone
feels safe and welcome when they
come to Auckland Airport.
This has never been more important
than during the outbreak of COVID-19.
Fast-changing border restrictions and
the subsequent global disruption of the
aviation industry created a challenging
environment for everyone – from the
travellers through to the airlines,
businesses, border agencies and
our own staff working at the heart
of our operation.
As ever, we have strived to deliver an
assured, reliable experience at a time
when conditions for our travellers and
our people are unpredictable, stressful
and uncertain.
In mid-March we implemented our full
Crisis Management Team to guide us
through the escalating risk of the spread
of COVID-19 to our travellers, staff and
the wider community. We worked hard
and fast alongside government border
agencies, the Ministry of Health (MOH),
the Ministry of Transport, airlines and
the wider travel and tourism industry.
Meeting daily, our collaborative cross-
agency team effort allowed us to make
rapid changes to reduce the COVID-19
risk. We introduced various layers of
protection across the terminal to keep
people safe and healthy, including
high-frequency cleaning in all areas
and widespread social distancing
messaging. We also helped foreign
embassies set up support for stranded
passengers and made the 260-room
Novotel Hotel available to the MOH to
provide managed isolation facilities for
returning New Zealanders.
16 Annual Report 2020Annual Report 2020 17
Review
A closer look

As we look to the future of aviation in a COVID-19
world, travellers will have new expectations around
how airports work to protect their health and safety.
Our airport experience needs to reflect this new
environment, providing reassurance to travellers and
guests that they should feel safe and comfortable at
all points of interaction at the airport.
The pandemic has accelerated the global trend of
contactless airport journeys, and over the past year
we have put the technology building blocks in place
to bring this to life.
The Auckland Airport app now pulls together the
complete journey from home to the gate of any flight
departing from the airport, creating a personalised
itinerary for the day of travel – from when to leave
home, to predictive estimates of the time required
to clear Customs and Aviation Security, to gate
allocations and alerts. The app puts the guest in
control and provides the basis of an end-to-end
digital journey.
We have introduced 12 eGates at international
departures to scan boarding passes and allow
access to security areas. Replacing the need
to physically check a boarding pass, the eGates
provide a touchless security process focused on
self-service. Two gates are configured to include
biometric authentication to enable a future seamless
customer journey from check-in to aircraft boarding.
We are now working on technology enhancements
to further reduce the physical touchpoints in
the airport journey – from ticketless parking
and self-service baggage drops to contactless
food and beverage ordering and virtual queuing.
These touchless experiences can help with
safety and efficiency as well as providing a
better guest experience.
The Juicery, the only food and
beverage operator open airside
during the COVID-19 lockdown, is a
standout example of Kiwi
hospitality and flexibility in a crisis.
In the face of one of the most
challenging situations the business
had ever been through, it adapted
to meet the new trading conditions.
While the airport was considered
an essential service and the airfield
continued to operate for domestic
and a small number of international
flights, there were strict limitations
on the types of food and beverage
that could be provided airside for
passengers under the
Government’s Alert Level system.
With less than a day’s notice The
Juicery converted its menu from
poké bowls, salads, juices and
smoothies to ready-to-eat healthy
sandwiches, fruit salad, snack bars
and bottled drinks – a food range
that complied with government
requirements for pre-prepared,
grab-and-go food only.
The company’s staff, who had
already said farewell to each other
in preparation for lockdown,
became part of a small group of
‘essential’ retail workers, providing
food and beverage options for
departing passengers. Two other
international terminal retailers, Take
Home and NZ Health & Beauty,
were also open during lockdown to
provide essential supplies to airport
workers and travellers.
THE JUICERY
Health and safety in the wider
airport community
Auckland Airport’s strong safety culture
extends to our retail and business
partners, many of whom have been
significantly impacted by COVID-19.
We included precinct stakeholders in
our communication strategy, providing
practical and up-to-date advice and
guidance to help keep them and their
workers informed. For our construction
partners, when building activity was able
to resume at Alert Level 3 we reviewed
and approved the health and safety plans
before teams returned to work.
Protecting our workplace
As an essential service, Auckland Airport
continued to operate throughout the
COVID-19 lockdown period.
Making changes to ensure the continued
health and safety of our people in the
workplace was one of our key priorities,
and we were quick to respond to
evolving operational demands and MOH
requirements. This included developing
a comprehensive and evolving Business
Response Plan to ensure our people
understood clearly how we would
operate during the pandemic and
what this meant for each of them.
We communicated frequently with staff
and created a confidential register of
vulnerable staff to help identify those
who may be at higher risk of contracting
COVID-19, while ensuring their working
arrangements were suitable to keep
them safe.
We also carried out detailed planning
to split operational staff shifts into
smaller groups during the higher alert
levels to further reduce the risk of staff
exposure, and safety equipment was
made freely available to all operational
staff. Meanwhile, remote working was
introduced for all non-frontline staff
ahead of the whole-of-country lockdown.
TOUCHLESS
TRAVEL
Auckland Airport’s strong
safety culture extends to
our retail and business
partners, many of whom
have been significantly
impacted by COVID-19.
We included precinct
stakeholders in
our communication
strategy, providing
practical and up-to-date
advice and guidance to
help keep them and their
workers informed.
18 Annual Report 2020Annual Report 2020 19

Auckland Airport’s goal of ensuring
consistent, reliable journeys for our
travellers remains unchanged.
We began the 2020 financial year with an
ambitious infrastructure development
programme that started at the airfield,
the centre of our operation, and
stretched to the edges of the airport
precinct.
Development was well underway,
including a 250,000m
2
expansion of
airfield taxiways and remote stands;
preparation work for two key terminal
expansion projects – the $1 billion-plus
Domestic Jet Hub and a new $350
million-plus international arrivals area; a
$100 million-plus upgrade to our core
roading network; and construction of an
additional Park & Ride facility. We also
made further progress in the
development of a second runway with
the Environment Court approving design
changes, including extending the
planned runway length by 833m to
2,983m, to accommodate predicted
growth in passenger numbers and
developments in aircraft technology.
The outbreak of COVID-19 and the
swift reduction in flight and passenger
numbers meant we had no option but
to carry out an immediate re-evaluation
of our entire infrastructure programme.
Such a rapid decline in aeronautical
demand and revenue meant we needed
to act prudently and take fast action,
but in a way that preserved what we
had already achieved.
Our long-term plans remain the same
but until there is more certainty about
future market conditions projects
predicated on growing passenger
numbers have been deferred. These
deferrals include:
• Construction of the new 30,000m²
arrivals area at the international
terminal
• The full expansion of our core roading
network, including the addition of all
high-occupancy vehicle lanes to
key thoroughfares, and enhanced
pedestrian and shared pathway links
as part of the Northern Network and
Southern Network projects
• Expanding the airfield including
a new taxiway and remote stands
• Planning and design for a
second runway
• The accelerated delivery of a new
Domestic Jet Hub, a new terminal
connected to the existing
international terminal
• Plans for an upgraded pedestrian
plaza and forecourt connected to the
existing international terminal
• Building additional car parks,
including construction of the
Park & Ride South facility on Puhinui
Road and plans for a six-storey,
3,200-bay car park in front of the
international terminal
Building
blocks
for the future
Recalibrating
our infrastructure
programme for a
post-COVID-19 world
20 Annual Report 2020Annual Report 2020 21

Triggers for future development
The impact of COVID-19 and the uncertainty around the
speed and timing of the aviation industry recovery have
required a refresh of the existing infrastructure plan.
We are taking the opportunity to reset our plans
to ensure we are ready to restart our infrastructure
programme as soon as demand justifies it.
By preserving and building on work that’s already
taken place, the refresh of our capital plan will look
at current capacity and scenarios around future
demand requirements for our airfield, terminal
and transport network, utilising the already
existing plans, infrastructure and asset information.
Prioritising core projects
Despite the current market challenges,
we have continued to progress selected
capital expenditure projects focused
on essential safety, resilience and
asset maintenance.
In May, following the dramatic reduction
in flight movements, we brought forward
budgeted and planned runway pavement
replacement work. This followed two
unplanned temporary closures of the
runway in January and February 2020.
We worked with our key project partners
to reach agreement on the safety case
needed to enable us to accelerate
delivery of the project. The $26 million
replacement of 280, 36m
2
concrete slabs
in the eastern touchdown zone was
successfully completed in August 2020.
Performing slab replacement work
is a normal part of maintaining safe
airfield operations and one undertaken
regularly by airports around the world.
Our runway, which was originally
constructed in 1965, has been
developed and renewed over the years
as part of a programme of work that
follows recognised standards and is
overseen by independent experts.
Throughout the initial lockdown period
we also completed safety compliance
work on the jet-fuel pipeline network,
as well as planned replacement work on
one of the original airbridges connected
to Pier A in the international terminal.
FUEL
PIPELINE
Work to create a resilient airfield
fuel network was underway when
New Zealand first went into lockdown.
Elements of the project relating
to essential safety and asset
maintenance continued through
Alert Level 4, making it one of the
only active worksites at the airport
during that time.
As New Zealand emerged from that
initial lockdown, fewer aircraft and
traffic on the airfield provided an
opportunity to enhance the sequence
of work on the fuel network, involving
4.4km of new pipeline. This was not
possible when managing construction
around activity on a busy airfield.
We took the time to evaluate each
of the remaining packages of
construction work to ensure any
deferred work was not only stopped
safely but in a way that also made it
easier and less expensive to return
to complete the works in the future.
Pipelines in place, although not yet
fully functional, have been filled with
nitrogen – an inert gas that prevents
pipeline deterioration – and are
monitored regularly.
Construction work on the pipeline,
which pumps 14,300 litres of fuel
per minute to 22 different aircraft
stands, will continue into the early
part of the 2021 financial year.
14,300
Litres of fuel per minute
DIGITAL
DOUBLE
Putting Auckland Airport in the best place
possible to quickly reignite our infrastructure
programme means digitally bringing together
earlier construction work.
Supporting the planning, design and
management of our core terminal infrastructure
has seen all key assets being developed as
digital replicas. Aligning Building Information
Modelling (BIM) with Geographical Information
Systems (GIS) enables Auckland Airport to
convert our bricks-and-mortar structures into
detailed 3D models.
Since its construction in the 1970s, the
international terminal has been renovated,
reconfigured and extended several times,
with each project generating different
architectural plans, engineering drawings,
construction detailing and maintenance
records. We are now building a complete
digital picture of our terminal – right down
to the furniture, available anywhere, anytime.
Initially tested on the redevelopment of the
international airside departures area and the
Pier B extension, the ‘Digital Twin’ approach
was fully adopted as a project tool for the
Domestic Jet Hub and international arrivals
expansion projects. The approach was used
in the design process as well as when working
with the many stakeholders involved in these
complex projects. These models will also form
the baseline data that is used to manage and
maintain the asset throughout its life cycle.
Although the outbreak of COVID-19 has seen
these big infrastructure projects deferred,
with no immediate requirement to support
the construction programme, work on refining
the model continues. This digital development
means not only will we be in a better position
when work on these projects recommences,
but this will also help us today to manage our
terminal assets and facilities in a cost-effective,
safe and efficient manner.
Before the outbreak of COVID-19, a 250,000m
2
airfield expansion (above) was underwayPreparation had begun for a new international arrivals area
We are taking the
opportunity to reset
our plans to ensure
we are ready to restart
our infrastructure
programme as soon
as demand justifies it.
22 Annual Report 2020Annual Report 2020 23

Aviation in the
time of COVID-19

No industry in the world has been
hit harder by COVID-19 than aviation.
At Auckland Airport, the effects of the
pandemic were felt immediately as
border restrictions came into force,
people stopped travelling and airlines
around the world moved quickly to
scale back their services in line with
lower demand.
New Zealand closed its border to anyone
who was not a New Zealand citizen
or permanent resident at 11.59pm on
19 March 2020. The importance of
cargo and repatriation flights came
to the fore straight away, underlining
Auckland Airport’s fundamental
purpose: We serve as New Zealand’s
main air connection point with the world.
More than 80% of the high-value,
time-critical goods that are transported
by air to and from New Zealand flow
through Auckland Airport. In the earliest
days of the pandemic, as airlines’
scheduled services plummeted,
a small number of passenger services
(Air New Zealand, China Eastern and
China Southern) continued to operate
throughout the lockdown, providing an
important lifeline for the flow of critical
imports like medical supplies, and the
export of Kiwi goods such as food and
meat products to key markets.
We saw other carriers follow suit,
adding further cargo capacity to
normal scheduled freight services.
Airlines such as Air Canada, Emirates
and China Airlines moved quickly to
repurpose passenger services to
airfreight only. Some airlines stored
cargo in the seating areas of aircraft as
well as in the belly hold, with the rise in
cargo capacity supported and enabled
by the New Zealand Government’s
International Air Freight Capacity (IAFC)
Scheme. This initiative has provided
financial support to carriers and airfreight
businesses to ensure New Zealand’s
critical freight routes remain open.
We worked hard to
grow New Zealand’s
air links to the world
and we will work just
as hard to safely
rebuild them
24 Annual Report 2020Annual Report 2020 25

SAFE BORDER
GROUP

REPATRIATION
FLIGHTS
Domestic travel
While international passenger numbers
fell 53% in the six months to 30 June
2020 compared with the previous half
year, domestic services have continued
to play a part in connecting Kiwi families,
enabling key business travel, and
supporting our local tourism industry.
Despite domestic capacity and demand
falling sharply during lockdown, it
rebounded at Alert Level 2. Jetstar
resumed its domestic services from
Auckland in July and was operating at
about 54% of its normal schedule as at
the end of July, while Air New Zealand
was operating at around 63% of its
usual domestic seat capacity, prior
to Auckland’s return to Alert Level 3
on 12 August.
Future of international travel
In the short term, the recovery of our
aeronautical business is dependent on
how the pandemic progresses and on
New Zealand’s ability to open up safe
corridors with other countries that have
had success in battling COVID-19, with
likely early candidates including the
Pacific Islands, Australia and several
countries in Asia. In the medium term,
the recovery of our aeronautical business
is dependent on the pathway to a wider
reopening of borders and Auckland
Airport continues to play a role in
supporting government officials in
planning for reopening when the
Government decides it is safe to do so.
According to the International Air
Transport Association (IATA), airlines are
expected to lose $130 billion this year.
We continue to work closely with our
airline partners, ensuring we are well
positioned to help them rebuild their
connections to and from New Zealand
as the market begins to recover.
Our outlook for the long term remains
strong. New Zealand continues to be an
attractive place to visit, do business,
study and live, and our reputation as a
safe, secure country will endure. Longer
KEY STATS:
International cargo capacity
Second half of the financial year
224,031 tonnes
-27% YoY
Dedicated freighter
movements
977
+27% YoY
Belly-hold
aircraft capacity
166,945 tonnes
-34% YoY
Passenger aircraft
freighter movements
1,435
As borders closed around the
world and scheduled flight services
were cancelled following COVID-19
lockdowns, the team at Auckland
Airport quickly switched focus into
supporting repatriation flights.
Our core role remained the same:
helping Kiwis get home and helping
other travellers get where they
need to be. But timelines for
supporting repatriation flights were
greatly contracted – while
preparing for a new airline service
into Auckland can typically take up
to a year, some repatriations were
arranged within days.
We are proud to have supported
airlines such as Air India, Swiss Air
Lines, Vietnam Airlines and
Austrian Airlines, which had either
never flown to New Zealand before,
or not operated regular scheduled
services here. In total, more than
22,700 travellers flew home via
Auckland Airport between February
and the end of July 2020.
Several airlines including Lufthansa
memorably acknowledged the
efforts of Auckland Airport and the
people of Auckland with flyovers of
the central city. A French Air Force
Airbus A400M paid a visit also,
repatriating citizens to Tahiti and
paying tribute to Auckland with a
low-level salute.
22,700+
travellers flown home via
Auckland Airport between
February and end July 2020
From the outset of the COVID-19
crisis, Auckland Airport has led a
programme of work to consider how
safe passenger connections could
be created between New Zealand
and other low-risk countries.
Recognising that safe passenger
travel would be crucial for both our
business and the national recovery,
Auckland Airport and the Australia
New Zealand Leadership Forum
(ANZLF) worked to bring together
health experts and airline, airport
and border agencies from both
sides of the Tasman to develop
new guidelines and protocols.
The Safe Border Group united
40 business and government
representatives. Its recommendations
for safely reopening the air border
have since been presented to the
governments of both countries to
support their decision making.
A safe air corridor between two
countries does away with the need
for a 14-day quarantine between
nations with similar COVID-19
infection rates and management
systems, boosting business, leisure
and tourism travel.
term, Asia’s fast-emerging middle class,
particularly in China, India and several
countries in South East Asia, represents
significant opportunities for New Zealand
tourism as well.
Our history shows what’s possible
To look to the future, we only need to
reflect on how far we have come in
growing New Zealand’s air connectivity
to the world.
Auckland Airport experienced more than
50 years of passenger growth before
COVID-19. It took 48 years to reach
15 million annual passengers at Auckland
Airport, and only another four years
(2014 – 2018) to exceed 20 million annual
passengers, flying to 50 destinations
around the globe. We added 13 new
airlines and 22 new international routes
between 2015 and 2019, adding capacity
and unlocking new markets in South
Korea, Canada, eastern United States
and the Middle East.
We worked hard to build these
connections and we are committed
to rebuilding them when it’s appropriate
to do so.
26 Annual Report 2020Annual Report 2020 27

We are pleased to report the 2020
financial year was an exceptional
12 months for Auckland Airport’s
investment property business. Our
annual rent roll has increased 4% to
$104 million and the portfolio value
has increased 17% to $2.04 billion.
The weighted average lease term (WALT)
for the portfolio is 9.3 years and remains
one of the longest WALTs in Australasia
for portfolios of this type.
Despite the challenges brought by
COVID-19, three new pre-leased building
commitments were secured, and all
projects within our $300 million-plus
development programme continue
to track within budget and ahead of
schedule. This sets a solid platform
for another strong contribution from
the investment property business in
the year to 30 June 2021.
Auckland Airport’s investment
property portfolio remains weighted
towards the industrial and logistics
sectors. Our assets are typically
modern, efficient buildings that are
leased to high-covenant tenants
on long-term leases with fixed rent
growth mechanisms in place.
When the developments currently
underway have been completed,
more than 70% of portfolio revenue
will be derived from assets less than
10 years old. Portfolio income is
diversified across a variety of industry
sectors (see diagram 1), adding
further resilience should economic
conditions further decline.
Working
hard for our
commercial
partners
Unlocking
value in
property
Our strategy of
diversifying into
investment property
provides resilience
Image: Percy café opened at The Landing in January
28 Annual Report 2020Annual Report 2020 29

The initial COVID-19 lockdown was
an unprecedented event felt differently
across the airport precinct. While some
tenants remained closed throughout
the period, others continued to
operate. We have worked hard to
support customers most affected
by this crisis, providing relief on a
case-by-case basis – in particular to
our smaller tenants within the retail,
service and hospitality sectors.
Despite these challenges, the
performance and outlook for our
investment property business
remains strong and continues to be
underpinned by development activity.
During the 2020 financial year, we
completed new developments leased
to ASX-listed Bapcor, Tempur Group
and Airways Corporation, and we
completed ‘Percy’, a landmark café
in The Landing Business Park. We
also secured three new development
commitments which are expected
to contribute a further $85 million
to the portfolio once completed.
These are:
16,000m
2
A 16,000m² purpose-built facility for
Hellmann Worldwide Logistics – the
second development for Hellmann
in The Landing Business Park
8,000m
2
An 8,000m² expansion for DHL Supply
Chain at The Landing Business Park –
DHL will increase the current footprint
to 20,000m², and extend its term to
10 years. This is our third development
for DHL Group at the airport in the
past six years
4,000m²
A new state-of-the-art 4,000m² facility
for Interwaste, which provides critical
waste collection, treatment and
disposal solutions for Auckland Airport,
Ports of Auckland, Port of Tauranga
and District Health Boards around the
North Island. This is located in our
eastern land holdings
The impact of COVID-19 has been
significant for our retail partners at
Auckland Airport, including those inside
our terminals.
When our terminals were fully operational,
we had 108 businesses open employing
around 2,500 people, creating a busy,
dynamic environment for our travellers.
All of this changed almost overnight as
the pandemic began to take hold.
Under the COVID-19 Alert Level 4
restrictions while operating at less than
10% of capacity, there were just three
retail businesses open at the international
terminal providing valuable travel
essentials and grab-and-go food
services to travellers and essential staff.
With some retail businesses reopening
as lockdown restrictions have started
to lift and others remaining closed until
international borders reopen, we have
worked alongside each of our retail
tenants to provide relief on a case-by-
case basis.
New Zealanders began booking
domestic flights again as travel
restrictions eased, giving many of our
domestic terminal retailers and service
operators the confidence to restart.
There were more than 275,000 domestic
passengers during the July school
holiday period, around 60% of July 2019
volumes, prior to Auckland’s recent
return to Alert Level 3.
Looking ahead
While the outlook for the immediate
future is uncertain, the past year has
included highlights that will ensure
we are in the best place possible to
enable us to accelerate growth once
international air travel resumes.
Since 2018, we have complemented
our terminal retail investment with an
innovative online shopping platform, The
Mall, and our online loyalty programme,
the Strata Club. With six major retailers
now on board, The Mall is a growing
retail channel with sales growth of 827%
for the first half of the 2020 financial year
compared to the previous period.
Logistics24%
FMCG19%
Aeronautical16%
Hotels13%
Government8%
Distribution7%
Manufacturing7%
Car Rental4%
Services2%
Sector composition
of porfolio income
Supporting
our retail
customers
Sustaining the
long-term future of
our retail business
85,000m
2
The 85,000m² Foodstuffs NZ
development, also situated within The
Landing Business Park, continues to
progress well and remains on track to be
completed in January 2021, with the office
building recently certified as 5-Star Green.
In partnership with Tainui Group
Holdings, the Novotel Hotel has provided
dedicated accommodation for travellers
arriving in New Zealand and serving their
14-day quarantine period.
Construction continues on our two hotel
developments – the 146-room Mercure
Hotel and the 311-room luxury Te Arikinui
Pullman Auckland Airport Hotel, the latter
in partnership with Tainui Group
Holdings. Post COVID-19 we have
adjusted our approach and our plan to
deliver these projects in a staged
development approach by first
completing the structure and façade of
the buildings while deferring fitout and
other construction works until market
conditions improve.
In the 2020 financial year, The Mall was
recognised at The Moodies – the
international airport and travel retail
digital, social media and marketing
awards. At the forefront of travel retail
innovation worldwide, The Mall won
the Best E-Commerce and Mobile
Commerce category.
We also advanced our e-commerce
offering with our targeted WeChat
mini store. Again, this places Auckland
Airport at the leading edge of travel retail
innovation, and through leveraging the
trust of our brand, the WeChat mini store
experienced 58% growth between the
first and second quarters of the 2020
financial year.
While the international travel restrictions
mean The Mall has temporarily ceased
processing orders, we have seen
consumer shopping behaviour
increasingly shift to online following the
outbreak of COVID-19. Auckland Airport’s
investment in e-commerce and loyalty
means we are well placed to respond
when international travel resumes.
The award-winning EBOS Group development
30 Annual Report 2020Annual Report 2020 31

Auckland Airport’s resilience has been
put to the test in the 2020 financial
year, but our commitment to making a
positive contribution socially, culturally,
environmentally and economically has
not faltered.
We know that many diverse groups
share a stake in Auckland Airport and
its future and that’s why we strive to
do better every day, recognising that
sustainability must be embedded across
our activities if we are to create and
share value.
In the 2020 financial year we made good
progress on achieving our sustainability
targets but the outbreak of COVID-19
has prompted a review of our approach
to sustainability. The pandemic has
had a significant impact across our
organisation and we are working to
re-evaluate our priorities, while ensuring
sustainability remains at the heart of
our business strategy.
Because of this, we have chosen to
take more time to develop our refreshed
sustainability strategy and are looking
forward to providing an update on
our new strategy and targets when
we release our interim results for the
2021 financial year.
Our people
It has been an extremely challenging
year for our team at Auckland Airport,
as we have shifted away from delivering
transformational infrastructure to
managing through a pandemic.
The outbreak of COVID-19 had a sudden
impact on our operation, and in the
space of a few short months we had to
make changes that would have seemed
unimaginable in January: shutting down
key projects; reducing the size of our
workforce; lowering employee hours
and salaries; and disrupting the growth,
progress and development our team
was proud to be leading.
These are among the toughest things
any business can experience.
Throughout this time of uncertainty,
we have put the health and safety of
our team first (see page 17) and we are
enormously proud of the professionalism,
grace and determination they have shown.
While many of our workers remained on
the frontline, more than 300 staff worked
remotely during lockdown. We were able
to quickly scale up our use of technology
to ensure we could meet, call and
collaborate in one virtual space – ways
of working that have now become a firm
fixture within our workplace culture.
Being a
sustainable
business
matters
We are purpose led
and values based
Our people are the face of Auckland
Airport and we have worked to
assist our staff in ensuring everyone
coming to the airport experiences
manaakitanga – a warm and uniquely
New Zealand hospitality.
This year we introduced the guest
promise and supporting training
modules for our staff to ensure we
deliver on our promise: we make
sure every guest leaves wanting
to come back.
Four service principles guide the
behaviour of our staff in delivering
on our guest promise: treating every
guest like they’re our only guest;
making it feel like a walk in the park;
making relaxation our guests’
destination; and helping our guests
enjoy their time, their way. In the 2020
financial year 172 people took part in
training across our operations, guest
services, engineering and support
office teams.
GUEST PROMISE
The symbol representing Auckland Airport’s new guest promise
32 Annual Report 2020Annual Report 2020 33

Supporting our
community
Auckland Airport’s approach to
sustainability is focused on our
commitment to empower the people
and community of South Auckland
and across wider Auckland.
Ara, our Auckland Airport Jobs and
Skills hub, has continued to play a
leading role in this, connecting local
people with training and employment
opportunities prior to the outbreak of
COVID-19, as part of a joint initiative
with government agencies, training
providers and employers.
During the 2020 financial year, we built
a strong partnership with the Ministry
of Social Development (MSD) and jointly
hosted two job expos at the new
headquarters of Ara, located at the
refurbished clubhouse of the former
Aviation Golf Course. One expo focused
on the hospitality industry and another
on construction, with more than 60
businesses and 940 job seekers
collectively attending the expos.
In the 2021 financial year, the MSD
and the Auckland Business Chamber
will manage the provision of services
and Ara’s name will change to Ara,
the Business and Employment Hub.
With Auckland Airport’s support,
Ara will stay in its current location at
the heart of the airport precinct and
continue to connect local people
with work and training opportunities
in and around Auckland Airport.
Our programme of community support
included a number of highlights in the
2020 financial year, including:
• Nine year 13 school leavers were
awarded an Auckland Airport
Education Scholarship, including a
financial grant, laptop and the help
of a mentor from the airport team
to kick-start their university careers
• We supported several local
organisations and events through our
sponsorship programme, including
the Counties Manukau Life Education
Trust, Firefighter Sky Tower Stair
Challenge (Leukaemia & Blood
Cancer New Zealand) and the Lakes
District Air Rescue Trust. These
sponsorships amounted to $83,468.
Auckland Airport has also been a
committed financial supporter of ASB
Polyfest, and while the 2020 event
had to be cancelled in response to
COVID-19, we contributed $17,500
to cover costs
• We granted $80,000 to community
groups across Auckland, comprising
$50,000 in He Tangata Grants to
10 community groups in Ōtara,
Māngere, Papatoetoe, Ōtāhuhu,
Manurewa and Papakura, and a
further $30,000 to 30 community
groups across Auckland
• We also granted $351,572 to the
Auckland Airport Community Trust,
which distributes these funds to
residents, schools, community
groups and organisations,
targeting projects and initiatives
that support learning, literacy and
life skills in South Auckland
• Auckland Airport also redistributed
$144,000 of donations made by
generous travellers into charity
globes in our terminals to 12 charities,
celebrating the 12th year of our annual
12 Days of Christmas programme
• Auckland Airport is in the final stages
of establishing a new permanent fund
for the benefit of local iwi groups
(Te Ākitai Waiohua, Te Kawerau ā
Maki and Te Ahiwaru). A total of
$50,000 will be available per year
through this programme (increasing
with inflation over time) for the
purpose of education scholarships
and vocational training relating to
travel, trade, tourism, sport, aviation,
engineering, construction and
environmental planning. Applications
for the first round of grants will be
called for in the 2021 financial year
Auckland Airport’s
approach to
sustainability is
focused on our
commitment to
empower the people
and community of
South Auckland
and across wider
Auckland.
Respectful
OUR VALUES
We careCollaborativeExceptional
Integrity
As an organisation, we also believe
strongly in the benefits of diversity and
inclusiveness. In the 2020 financial year,
we advanced diverse leadership with
female representation on the Board
increasing from 50% to 62.5%. The
percentage of females in the leadership
team increased from 22% to 25%, while
senior leaders increased from 33% to
41%. We still have further progress to
make as an organisation in achieving
our diversity target objectives and this
will continue to be a focus.

During the initial lockdown period,
we faced the difficult task of beginning
to reshape our organisation in line
with fewer flights arriving and the
deferral of a significant part of our
infrastructure development programme.
As at 30 June 2020, we had reduced
our workforce by 25% to 527 full-time
staff members. In June, we also began
consultation with our people on further
staff changes impacting our operations
and infrastructure teams, with additional
job losses following our balance date.
Throughout this difficult time, our
approach has been guided by our
values of being respectful, collaborative,
exceptional, acting with integrity and
demonstrating that we care.
We are committed
to ensuring that our
actions continue to
reflect these values,
and at the moment this
is centred around open
communication about the
challenges we face and
the changes we need to
make in the future.
Ara job expo
34 Annual Report 2020Annual Report 2020 35

Health and safety
89%
Reporting of safety
observations and hazards
72%
Employee recordable injury rate
5.9%
Passenger incident rate
Reducing our environmental footprint
This financial year we have continued to reduce energy use, waste and carbon
across our operations.
While good progress has been maintained our results have been influenced by
the significant reduction in overall passenger numbers during the second half
of the 2020 financial year because our environmental impact reductions are
calculated on a per-passenger basis.
The following results are in comparison with our base year, 2012.
Ara – Airport Jobs and Skills Hub
940
job seekers attended two job expos
60
businesses took part
Auckland Airport
Community Trust
$351,572
granted to community projects by
the Auckland Airport Community
Trust to support learning, literacy
and life skills in South Auckland
Non-financial disclosure
In the 2020 financial year we
continued in our proud history
of voluntary disclosure of our
sustainability performance,
including featuring in the Dow Jones
Sustainability Index and FTSE4Good.
KEY STATISTICS
Supporting strong
communities and
partnerships
External recognition for online
interactive consultation tool
In April 2020, Auckland Airport won the
New Zealand Planning Institute’s Best
Practice – Consultation Participation
Strategies and Processes award
for the development and use of an
online interactive tool to help property
owners understand the potential
impact of the planned second
runway on their property. There
were 146,682 views within the first
month of the map being launched.
Health and safety partnership
Our drive for better health and safety
outcomes and commitment to zero
harm means we continually seek to
improve our processes.
We introduced new Health and Safety
Contractor forums in the 2020 financial
year where Auckland Airport,
contractors and industry experts shared
ideas, initiatives and knowledge across
all areas of health and safety. We also
reviewed and consolidated our key
critical health and safety risks.
The proactive attitudes and increased
engagement relating to safety were
reflected in the number of safety
observations and hazards reported,
and the decline in employee injury
and passenger incident rates.
We know that we are stronger at
Auckland Airport when we work as a
team and this extends beyond our
organisation.
The successful, safe and reliable
operation of our business relies on our
many and diverse stakeholders, and in
the 2020 financial year we placed great
emphasis on building an environment
focused on trust, shared interests and
open communication and collaboration.

SPOTLIGHT ON THE
AUCKLAND AIRPORT
COMMUNITY TRUST
The Auckland Airport Community
Trust provides financial assistance
to a wide range of community
groups in the Manukau area.
Since its establishment in 2003, the
Trust has distributed over $4 million
in grants for community benefit,
focusing on improving education
outcomes. The core focus of these
grants has been to support
learning, literacy and life skills,
although that focus has widened in
recent years to benefit a greater
range of people and activities.
In the 2019/2020 funding round,
18 groups received community
grants to support a wide variety
of activities, including youth
support, artistic activities,
sporting facility development,
environmental improvement
and conservation initiatives,
volunteering programmes, and
programmes targeted to help
elderly and disabled people within
our communities. Some of the
very worthy recipients of these
grants include Garden to Table,
an organisation which teaches
essential food skills to children,
and Sistema Aotearoa, an Ōtara-
based organisation working to
bring about social change through
orchestral music-making.
Stay in the know
As work began on a series of major
infrastructure projects in the 2020
financial year, we launched a multi-
channel communications campaign
built around the idea that travellers,
local businesses and workers
could “stay in the know” on airport
infrastructure projects and how
they might impact their journey.
Runway pavement replacement
Work to replace and renew the pavement
in the runway touchdown zone is a key
part of our continuous programme of
ensuring a safe and reliable airfield.
Strong collaboration with our
stakeholders and agreement
on the significant benefits of an
early start allowed the work to be
brought forward and completed
without compromising safety.
Stay in the know campaign image
Auckland Airport introduced health and safety contractor forums
in the 2020 financial year and took part in exercises with contractors
Sistema Aotearoa
The 2020 financial year marks the end of many of our environmental impact
reduction targets which were set in 2013. Work is underway to develop our
refreshed sustainability strategy and we are looking forward to providing an
update on our new strategy and targets when we release our interim results
for the 2021 financial year.
UnitF Y17F Y18F Y19FY20
Energy use per passenger%-34%-35%-38%-19%
Waste to landfill per passenger%-46%-46%-47%-39%
CO
2
-e emissions per m
2

of terminal area
%-29%-34%-40%-45%
36 Annual Report 2020Annual Report 2020 37

Governance
and leadership
Seated – from left
Patrick Strange
Michelle Kong
Justine Smyth
Dean Hamilton
Standing – from left
Tania Simpson
Julia Hoare
Liz Savage
Christine Spring
Mark Binns
Future director
Michelle Kong
Michelle Kong was selected to
participate in the Future Director
Programme in January 2019 and her
term ended in June 2020. We would like
to thank Michelle for her valuable
contribution.
Company officer changes
Richard Barker
General Manager Retail and Commercial
In June 2020, it was announced
that General Manager Retail and
Commercial Richard Barker would
be leaving the company.
Richard has been responsible for
developing Auckland Airport’s retailing
businesses, including duty free, specialty
retail, and food and beverage, as well as
overseeing passenger experience and
car-parking. Under his leadership, in
2019 Auckland Airport’s refurbished
departure terminal and dining precinct
was named the global Airport Food &
Beverage Offer of the Year, while The
Mall won Best E-commerce Platform
at the 2020 Moodies travel journey
digital awards.
Richard’s leadership and commitment
to delivering an exceptional customer
experience means Auckland Airport’s
retail business will be in an excellent
position to rebuild quickly once the
market begins to recover.
Responsibility for Richard’s business
portfolios has been shared between
other members of the executive team.

Liz Savage
Liz Savage became a director of
the company after the 2019 annual
meeting. She has worked for 20 years
in senior leadership roles in Australia
and Europe, including as Chief
Commercial Officer of Virgin Australia
during the early transformation of the
airline, and Business Development
Director of easyJet during the
airline’s first 10 years of growth.
Liz is currently a director of Intrepid
Group, North Queensland Airports,
and People Infrastructure. She is also
a board member of Brisbane Marketing.
Retired director
Brett Godfrey
Brett Godfrey became a director of the
company in 2010. Brett officially retired
from the Board at the 2019 annual
meeting. We would like to thank Brett
for all his hard work and many years
of commitment to Auckland Airport
New director
38 Annual Report 2020Annual Report 2020 39

The 2020 financial year was one of
contrasting halves. The first half of
the year saw the company embark
on a historic period of infrastructure-
related transformation, while the
second half of the financial year
was significantly impacted by the
global travel restrictions put in place
following the outbreak of COVID-19.
Our reported profit after taxation for the
2020 financial year was $193.9 million –
a decrease of 63% on the prior year’s
reported profit of $523.5 million.
Underlying profit after taxation for the
2020 financial year was $188.5 million,
a decrease of 31.4% on the prior year’s
underlying profit of $274.7 million.
Revenue decreased 23.7% to $567.0
million reflecting subdued passenger
flows in the second half of the year driven
by the introduction of travel restrictions
associated with the COVID-19 outbreak.
Total aeronautical income for the 2020
financial year fell 25.3% on the prior
year as a result of substantially lower
aeronautical activity. In the three months
to June 2020, passenger numbers at
Auckland Airport were down 92.6%.
In response to the reduced aeronautical
activity, Auckland Airport undertook
a cost reduction programme that
has generated significant savings in
discretionary and activity based
operating expenditure in the second
half of the year. However, operating
expenses for the year increased
62.6% to $306.6 million as additional
COVID-related costs were incurred
including capital expenditure project
write-offs, impairments, contractor
termination expenses, redundancies
and provisions for expected credit
losses. As a result, earnings before
interest expense, taxation, depreciation,
fair value adjustments and investments
in associates (EBITDAFI) in the year to
30 June 2020 decreased 53.1% to
$260.4 million.
Auckland Airport’s share of underlying
profit from associates was $9.2 million
for the 2020 financial year, an increase
of $1.0 million on the prior year reflecting
profit of $4.5 million from Queenstown
Airport and a 14.6% increase in Auckland
Airport’s share of underlying profit from
the Novotel Hotel to $4.7 million.
The unparalleled trading environment
driven by the COVID-19 outbreak
resulted in earnings per share
decreasing by 64.5% to 15.2 cents.
Underlying earnings per share also
decreased by 34.7% to 14.7 cents.
The Board has resolved not to pay
a final dividend in 2020 owing to the
impacts of the COVID-19 pandemic.
Under the terms of the financial
covenant waivers in place from June
2020 until December 2021 granted
by Auckland Airport’s banking group
and USPP noteholders, dividend
payments are suspended until
the covenant waivers expire.
The table above shows the reconciliation
between reported profit after tax and
underlying profit after tax for the years
ended 30 June 2020 and 30 June 2019.

We have made the following adjustments
to show underlying profit after tax for
the years ended 30 June 2020 and
30 June 2019:
• We have reversed out the impact of
revaluations of investment property
in 2020 and 2019. 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 out the
revaluation of the land, infrastructure,
and runways, taxiways and aprons
classes of assets within property,
plant and equipment for the 2020
financial year and 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
20202019
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
EBITDAFI per Income Statement
1
260.4–260.4554.8–554.8
Investment property fair value increase168.6(168.6)–254.0(254.0)–
Property, plant and equipment revaluation(45.9)45.9–(3.8)3.8–
Fixed asset write-offs, impairments and
termination costs–117. 5117. 5 –––
Derivative fair value movement(1.9)1.9–(0.6)0.6–
Share of profit of associates and
joint ventures8.40.89.28.2–8.2
Impairment of investment in joint venture(7.7)–(7.7)–––
Depreciation(112.7 )–(112.7 )(102.2)–(102.2)
Interest expense and other finance costs(71.8)–(71.8)(78.5)–(78.5)
Taxation expense(3.5)(2.9)(6.4)(108.4)0.8( 10 7. 6 )
Profit after tax193.9(5.4)188.5523.5(248.8)274.7
• We have reversed out the impact
of fixed asset project write-offs,
impairments and termination costs
for the 2020 financial year. In
response to the COVID-19 outbreak,
some capital expenditure projects
were abandoned and fully written off
and others were suspended. Some
of these abandoned or suspended
projects incurred contractor
termination costs. The abandonment
or suspension of live capital
expenditure projects is extremely
rare and is the direct consequence
of COVID-19. These fixed asset
write-off costs, impairments and
termination costs are not considered
to be an element of the group’s
normal business activities and on
this basis have been excluded from
underlying profit
• We have also reversed out the impact
of derivative fair value movements.
These are unrealised and relate
to basis swaps that do not qualify
for hedge accounting on foreign
exchange hedges, as well as any
ineffective valuation movements 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(b) of the
financial statements
• In addition, we have adjusted the
share of profit of associates and
joint ventures in 2020 to reverse out
the impacts on those profits from
revaluations of investment property
and financial derivatives
• We have also reversed out the
taxation impacts of the above
movements in both the 2020
and 2019 financial years
Financial
summary
Underlying earnings
per share
34.7%
14.7 cents per share
1. EBITDAFI includes $117.5 million relating to fixed asset project write-offs, impairments and termination costs
40 Annual Report 2020Annual Report 2020 41

aucklandairpor t.co.nz
Please recycle me
Share registrar
Link Market Services Limited
Level 11, Deloitte Centre
80 Queen Street, Auckland 1010
New Zealand
PO Box 91976, Auckland 1142
New Zealand
Email: enquiries@linkmarketservices.com
Website: www.linkmarketservices.co.nz
New Zealand telephone: +64 9 375 5998
New Zealand facsimile: +64 9 375 5990
Australia telephone: +61 1300 554 474
Annual Report 2020
This annual report covers the performance of
Auckland International Airport Limited for the
period from 1 July 2019 to 30 June 2020.
This volume contains overview information
and a summary of our performance against
financial and non-financial targets for the
2020 financial year. Our audited financial
statements for the period from 1 July 2019
to 30 June 2020 are contained in a separate
volume, which may be accessed at
report.aucklandairport.co.nz
2020 Financial Statements
The 2020 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
Email: investors@aucklandairport.co.nz
Website: www.aucklandairport.co.nz

---

Financial
Report
2020

Financial Statements
This annual report covers the performances of
Auckland International Airport Limited (Auckland
Airport) from 1 July 2019 to 30 June 2020. This
volume contains our audited financial statements.
Overview information and a summary of our
performance against financial and non-financial
targets for the 2020 financial year are obtained in
a separate volume, which may be accessed at
report.aucklandairport.co.nz.

Financial report 2020
Introduction
Auckland Airport is pleased to present the financial results for the year to 30 June 2020.
This was a year of contrasting halves with the first half dominated by the company
embarking on a historic period of infrastructure-related transformation and the second
impacted by the travel restrictions put in place to mitigate the effects of the COVID-19
outbreak.
The eight-month period to February 2020 was a period of transformation for Auckland
Airport, with key milestones reached in the airport infrastructure upgrade, including the
commencement of four of our eight key anchor projects. Auckland Airport also focused
on delivering meaningful customer improvements including launching new automated
pre-security gates, the continued rollout of check-in kiosks and the completion of the
international departures upgrade. International air connectivity continued to grow in the
eight-month period to February 2020 with new or enhanced services launched to
Vancouver and Seoul. Regrettably, domestic passenger volumes marginally fell during the
first half reflecting increased yield management by airlines and the impact of Jetstar’s
exit from regional services.
Following the global outbreak of COVID-19 and the subsequent imposition of travel
restrictions from February 2020, Auckland Airport took a number of decisive measures
to withstand the challenging and unparalleled operating environment. This included the
suspension of capacity-driven capital expenditure with an estimated completed project
value in excess of $2.0 billion, a substantial reduction in operating costs, undertaking a
$1.2 billion equity raise, the largest secondary issue in New Zealand’s history, and a
comprehensive debt restructure including extending bank loan maturities and agreeing
financial covenant waivers from June 2020 to December 2021 (inclusive).
Despite all the disruption of the last four months, we remain committed to customer
service and providing a safe and efficient travel experience. During the ongoing period
of uncertainty, we will continue to deliver on what is most important for our customers,
our community, our country, our people and our investors.
This financial report analyses our results for the 2020 financial year and its key trends. It
covers the following areas:
• 2020 Financial performance summary;
• Impact of COVID-19;
• Key performance measures;
• 2020 Passenger movement analysis;
• 2020 Aircraft volume analysis;
• 2020 Financial performance analysis;
• 2020 Financial position analysis; and
• 2020 Returns for shareholders.
1
Financial report

2020 Financial performance summary
This financial summary provides an overview of the financial results and key trends for the
year ended 30 June 2020 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 2020 financial year, revenue decreased by 23.7% to $567.0 million, with revenue
across a number of business segments significantly impacted by the subdued passenger
flows following the global outbreak of COVID-19. Aeronautical revenues decreased
25.3% on the prior year, reflecting reduced passenger volumes following the imposition
of travel restrictions. Retail and carparking revenues decreased 37.3% and 21.7%
respectively. Despite the economic headwinds, property rental income delivered
moderate growth of 2.2% in the period as a result of completed developments
contributing income.
Our reported profit after taxation for the 2020 financial year was $193.9 million –
a decrease of 63.0% on the prior year's reported profit of $523.5 million. Our underlying
profit after taxation for the 2020 financial year was $188.5 million, a decrease of 31.4%
on the prior year's underlying profit of $274.7 million.
A summary of the financial results for the year to 30 June 2020 and the 2019
comparative is shown in the table below.
2020
$M
2019
$M% change
Income567.0743.4(23.7)
Operating expenses306.6188.662.6
Earnings before interest, taxation, depreciation, fair value adjustments
and investments in associates (EBITDAFI)260.4554.8(53.1)
Reported profit after tax193.9523.5(63.0)
Underlying profit after tax188.5274.7(31.4)
Earnings per share (cents)15.242.8(64.5)
Underlying earnings per share (cents)14.722.5(34.7)
Ordinary dividends for the full year
1
– cents per share-22.25(100.0)
– value distributed-269.1(100.0)
1. Comprising the 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
believe that an underlying profit measurement can also 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, dividends are temporarily suspended while Auckland
Airport has financial covenant waivers in place with our lenders. The dividend suspension
is expected from the reporting periods ending 30 June 2020 to 31 December 2021.
In referring to underlying profits, we acknowledge our obligation to show investors how
we have derived this result. The table below shows the reconciliation between reported
profit after tax and underlying profit after tax for the years ended 30 June 2020 and 2019.
2
Auckland International Airport Limited

20202019
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
EBITDAFI per income statement
1
260.4-260.4554.8-554.8
Investment property fair value increase168.6(168.6)-254.0(254.0)-
Property, plant and equipment revaluation(45.9)45.9-(3.8)3.8-
Fixed asset write-offs, impairments and
termination costs-117.5117.5---
Derivative fair value movement(1.9)1.9-(0.6)0.6-
Share of profit of associate and joint ventures8.40.89.28.2-8.2
Impairment of investment in joint venture(7.7)-(7.7)---
Depreciation(112.7)-(112.7)(102.2)-(102.2)
Interest expense and other finance costs(71.8)-(71.8)(78.5)-(78.5)
Taxation expense(3.5)(2.9)(6.4)(108.4)0.8(107.6)
Profit after tax193.9(5.4)188.5523.5(248.8)274.7
1. EBITDAFI includes $117.5 million relating to fixed asset project write-offs,
impairments and termination costs.
We have made the following adjustments to show underlying profit after tax for the years
ended 30 June 2020 and 2019:
• We have reversed out the impact of revaluations of investment property in 2020 and
2019. 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 out the revaluation of the land, infrastructure, and runways, taxiways and
aprons classes of assets within property, plant and equipment for the 2020 financial
year and 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 fixed asset project write-offs, impairments and
termination costs for the 2020 financial year. In response to the COVID-19 outbreak,
some capital expenditure projects were abandoned and fully written off and others
were suspended. Some of these abandoned or suspended projects incurred
contractor termination costs. The abandonment or suspension of live capital
expenditure projects is extremely rare and is the direct consequence of COVID-19.
These fixed asset write-off costs, impairments and termination costs are not
considered to be an element of the group’s normal business activities and on this
basis have been excluded from underlying profit;
• We have also reversed out the impact of derivative fair value movements. These are
unrealised and relate to basis swaps that do not qualify for hedge accounting on
foreign exchange hedges, as well as any ineffective valuation movements 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(b) of the financial statements;
• In addition, we have adjusted the share of profit of associates and joint ventures in
2020 to reverse out the impacts on those profits from revaluations of investment
property and financial derivatives; and
• We have also reversed out the taxation impacts of the above movements in both the
2020 and 2019 financial years.
3
Financial report

Impact of COVID-19
The global spread of COVID-19 and the subsequent imposition of travel restrictions has
dramatically impacted Auckland Airport. The aviation industry has been fundamentally
impacted by the outbreak, resulting in a substantial drop in Auckland Airport's aircraft
movements and passenger numbers in the second half of the 2020 financial year.
International passenger flows are a key driver of financial performance and whilst travel
restrictions remain in place, these have essentially ground to a halt. In May 2020, the
number of people that arrived in New Zealand was the lowest for any month since May
1959. However, more recently we have enjoyed a gradual recovery in domestic
passengers as the country emerged from its lockdown, providing opportunities for Kiwis
to travel, do business and see more of our beautiful country. As at 13 August when this
commentary was completed, it was unclear how significant the setback to the domestic
passenger recovery would be from Auckland re-entering Alert Level 3 on 12 August and
the rest of the country going into Alert Level 2.
4
Auckland International Airport Limited

The impact of reduced passenger numbers extends beyond Auckland Airport’s
aeronautical activities and into the retail, transport and the hotel segments of the business.
Recognising the scale of disruption from ongoing travel restrictions, Auckland Airport
reacted quickly and decisively to COVID-19, including:
• Implementing a significant reduction in operating expenditure, including the
suspension of discretionary expenditure, reviewing work underway with external
consultants, reducing the number of external contractors, reducing the remuneration
of board members, executives and the majority of employees by 20%, suspending
bonuses and all short-term incentives for the 2020 financial year, and the general
reduction of operational activities in line with the new operating environment;
• The suspension or cancellation of capacity-driven capital expenditure with an
estimated completed project value in excess of $2.0 billion;
• The extension of all bank debt facilities maturing in the period to 31 December 2021
and the granting of waivers from the business’ banking group and USPP noteholders
for potential covenant breaches until 31 December 2021; and
• The completion of a $1.2 billion equity raise to strengthen the group’s balance sheet
and provide liquidity for the foreseeable future.
In addition to responding to challenges in our own business, Auckland Airport recognises
we are part of a wider community and we have a role to play in supporting our industry
partners through the COVID-19 disruption. In support of our airline partners, Auckland
Airport suspended aircraft parking charges allowing non-operating aircraft to park free
of charge. Secondly, Auckland Airport has supported some of our retailers and tenants
to manage through the significant disruption caused by COVID-19 by providing rental
abatements and deferrals.
While a high level of uncertainty remains around the shape and timing of the recovery in
travel and tourism, Auckland Airport’s decisive actions position us well for the eventual
recovery.
5
Financial report

Key performance measures
Auckland Airport monitors a wide range of financial and non-financial performance
measures. Since 2013, Auckland Airport’s strategy of Faster, Higher, Stronger has been
very successful in growing the business and delivering improved outcomes for all of our
stakeholders.
However, the imposition of travel restrictions associated with the COVID-19 pandemic
has necessitated a different strategic posture by the company. Our strategy has changed
to one of immediately responding to the imposition of travel restrictions, positioning the
business for the recovery in travel and tourism and pursuing accelerated growth once the
recovery is well underway. This strategy significantly changes the immediate priorities of
the business depending on which of the 'respond', 'recover' or 'accelerate' stages that
the company is operating in. As a result, the key performance measures summarised
below will be more relevant over the longer term once aviation markets have recovered
from COVID-19.
Measure
202020192018
% change
2019–2020
% change
2018–2019
Total aircraft seat capacity
International aircraft seat capacity10,550,42414,062,76113,658,147(25.0)3.0
Domestic aircraft seat capacity8,645,57511,424,08411,143,891(24.3)2.5
Passenger movements
International passengers7,739,26010,506,66010,202,526(26.3)3.0
International transit passengers734,6861,011,3281,063,856(27.4)(4.9)
Domestic passengers7,047,1089,593,6259,263,666(26.5)3.6
Maximum certified take-off
weight (MCTOW)
International MCTOW (tonnes)4,669,9295,894,1125,798,018(20.8)1.7
Domestic MCTOW (tonnes)1,830,7112,372,4122,341,699(22.8)1.3
Cargo volume
Volume of international cargo movements
(tonnes)165,005190,905187,258(13.6)1.9
Passenger spend rate (PSR)
Change in International Terminal PSR(0.5%)6.6%(1.8%)
Income per passenger (IPP)
Retail IPP$17.45$20.50$17.76(14.9)15.4
Average revenue per
parking space (ARPS)
Change in ARPS(26.5%)3.8%1.9%
Return on investment
Return on capital employed2.9%8.3%11.0%
1
Passenger satisfaction/
Airport Service Quality (ASQ)
International4.35
2
4.264.122.13.4
Domestic4.02
2
4.033.97(0.2)1.5
Rent roll
Annual rent roll $m (property division)104.0100.090.24.010.9
EBITDAFI
EBITDAFI per passenger$16.78$26.28$24.67(36.2)6.5
1. Includes $297.4 million gain on sale of 24.6% shareholding in North Queensland
Airports.
2. 2020 ASQ Survey scores reflect results to the third quarter, as fourth quarter ASQ
data was not collected during the lockdown period.
6
Auckland International Airport Limited

2020 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 revenue generated by an international passenger being between four and five times
that of a domestic passenger.
20202019% change
Auckland Airport passenger movements
International arrivals3,948,2485,284,325(25.3)
International departures3,791,0125,222,335(27.4)
International passengers excluding transits7,739,26010,506,660(26.3)
Transit passengers734,6861,011,328(27.4)
Total international passengers8,473,94611,517,988(26.4)
Domestic passengers7,047,1089,593,625(26.5)
Total passenger movements15,521,05421,111,613(26.5)
International passenger movements
Passenger movements for the year to 30 June 2020 were characterised by contrasting
periods, with the initial eight-month period tracking broadly in line with the prior year,
before the imposition of travel restrictions in relation to COVID-19 resulted in passenger
volumes that were a fraction of the previous years.
International passenger numbers decreased by 26.4% in the year to 30 June 2020
reflecting the impact of the travel restrictions imposed by the New Zealand Government
in response to the COVID-19 outbreak.
Prior to any imposition of travel restrictions, the initial eight-month period to February
2020 was a mix of ongoing achievement and challenges, with international passenger
growth tracking in line with the previous financial year. New or enhanced air services
were launched to Vancouver and Seoul, along with the announcement of new services
to New York and Dallas Fort Worth. However, this growth in air connectivity was met
with reductions in airline seat capacity as airlines consolidated certain routes within their
networks, particularly to Asia and Australia. International passenger growth was
strongest across the Pacific Islands and North America in the eight months to February
2020, driven by capacity growth from both new services and additional frequency
introduced on existing routes.
Passenger arrivals by country of last residence saw increases from five of our top ten
largest source markets for the initial eight-month period to February 2020. The additional
services to Canada helped deliver an increase in Canadian arrivals of 1,806 (4.0%). Indian
arrivals increased by 4,935 (12.7%) following increased connectivity between Auckland
and Singapore.
The global outbreak of the COVID-19 virus has had a significant impact on the last four
months of the financial year. Airlines began reducing services in February 2020 in
response to the first travel restriction imposed by the New Zealand Government on
foreign nationals travelling or transiting to and from mainland China. The closure of the
New Zealand border to all but New Zealand citizens and permanent residents from
20 March 2020 had an immediate and significant effect on aeronautical capacity. Airlines
suspended or drastically reduced their services with international passenger numbers in
the final quarter of the financial year to 30 June 2020 down 97.1% on the prior year.
7
Financial report

The table below shows the top 20 volumes of passenger arrivals by country of last
permanent residence to Auckland Airport in the 2020 financial year.
International passenger arrivals
Country of last permanent residence20202019% change
% of total 2020
arrivals
% of total 2019
arrivals
New Zealand1,835,1482,441,015(24.8)46.546.2
Australia655,655874,027(25.0)16.616.5
United States of America226,693291,469(22.2)5.75.5
China, People's Republic of203,274360,805(43.7)5.16.8
United Kingdom and Ireland156,262188,099(16.9)4.03.6
Japan68,48292,132(25.7)1.71.7
Germany58,43675,652(22.8)1.51.4
Korea, Republic of52,55567,988(22.7)1.31.3
Canada52,37062,511(16.2)1.31.2
India48,09258,879(18.3)1.21.1
Taiwan34,35344,237(22.3)0.90.8
Hong Kong31,15745,600(31.7)0.80.9
France28,87735,713(19.1)0.70.7
Singapore26,65237,190(28.3)0.70.7
Fiji23,92530,715(22.1)0.60.6
Samoa22,98129,523(22.2)0.60.6
South Africa22,24824,384(8.8)0.60.5
Malaysia20,84443,628(52.2)0.50.8
Netherlands19,79522,504(12.0)0.50.4
French Polynesia19,30124,764(22.1)0.50.5
SOURCE: Statistics New Zealand
Visitor arrivals by purpose of visit
The most common purpose of international arrivals to New Zealand continued to be
holidays (23.7%) and visiting friends and relatives (15.9%).
Purpose of visit
20202019% change% of total
Foreign residents
Holiday936,1691,309,162(28.5)23.7
Visit friends/relatives626,849803,758(22.0)15.9
Business/conference233,351296,930(21.4)5.9
Education/medical45,20959,115(23.5)1.1
Other (incl. not stated/not
captured)
271,522374,345(27.5)6.9
New Zealand residents1,835,1482,441,015(24.8)46.5
SOURCE: Statistics New Zealand
Until the New Zealand border is reopened, visitor arrivals will largely comprise the
repatriation of New Zealanders.
Domestic passenger movements
Domestic passenger numbers similarly decreased by 26.5%, or 2,546,517 passengers,
in the year to 30 June 2020 reflecting the impact of the travel restrictions imposed in
response to COVID-19.
The first eight-month period to February 2020 saw domestic passenger numbers tracking
slightly below the prior year, driven by airline capacity reductions on main trunk routes
and Jetstar’s withdrawal from regional services in December 2019.
8
Auckland International Airport Limited

Following the global outbreak of COVID-19, reductions in domestic services were
announced in February 2020 as a result of the fall in international passenger demand.
Further reductions occurred once domestic air travel was restricted to essential services
only while New Zealand was under Alert Level 4 and Alert Level 3 lockdown over a period
of seven weeks from 26 March 2020 to 13 May 2020. Non-essential air travel was
permitted again when New Zealand entered Alert Level 2 on 14 May 2020; however,
airlines were required to physically distance passengers on board the aircraft which
meant that approximately 40% of domestic seat capacity operating was unsellable. On
9 June 2020 all domestic air travel restrictions were lifted when New Zealand entered
Alert Level 1. This saw domestic passenger movements recover ahead of international
passengers with domestic passenger numbers in the month of June 2020 at 29.1% of
the prior year. Auckland re-entered Alert Level 3 on 12 August with the rest of New
Zealand re-entering Alert Level 2.
2020 Aircraft volume analysis
Total aircraft movements in the year were 139,137, a decrease of 22.2% from the 2019
financial year, while MCTOW decreased 21.4% to 6,500,640 tonnes. The decline in
MCTOW and aircraft movements reflects the reduction in both international and
domestic air services as a result of the travel restrictions imposed in response to the
COVID-19 pandemic.
2020
2019% change
Aircraft movements
International44,96257,082(21.2)
Domestic94,175121,689(22.6)
Total aircraft movements139,137178,771(22.2)
MCTOW (tonnes)
International MCTOW4,669,9295,894,112(20.8)
Domestic MCTOW1,830,7112,372,412(22.8)
Total MCTOW6,500,6408,266,524(21.4)
9
Financial report

2020 Financial performance analysis
Revenue
In the 2020 financial year, revenue decreased by 23.7% to $567.0 million, with reduced
passenger numbers having impacts across most business segments. Retail revenue was
down 37.3%, Car parking revenue down 21.7% and Aeronautical rental income down
2.4%. Property rental income was subject to only minor impacts from the pandemic,
increasing 2.2% on the prior year. Total aeronautical income fell 25.3% from 2019, as
passenger numbers and aviation activity ground to a halt due to COVID-19.
2020
$M
2019
$M% change
Operating revenue
Airfield landing charges88.4116.9(24.4)
Airfield parking charges12.210.714.0
Total airfield income100.6127.6(21.2)
Passenger services charge133.0185.1(28.1)
Total aeronautical income233.6312.7(25.3)
Retail income141.5225.8(37.3)
Car parking income50.364.2(21.7)
Rental income - Property88.586.62.2
Rental income - Aeronautical20.320.8(2.4)
Rental income - Retail0.40.4-
Total rental income109.2107.81.3
Rates recoveries7.76.714.9
Interest income1.71.8(5.6)
Other income23.024.4(5.7)
Total revenue567.0743.4(23.7)
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 decreased by
$27.0 million, or 21.2%, to $100.6 million. Total MCTOW across international and
domestic landings decreased by 21.4%. This decrease reflected the reduction in air
services and movements in response to the travel restrictions that were imposed in
response to COVID-19.
Airfield parking charges income was $12.2 million in the 2020 financial year, an increase
of 14.0% on the prior year, driven by a combination of aircraft being parked for longer
periods on the airfield and a scheduled increase in aircraft parking prices.
During the period of the COVID-19 disruption, Auckland Airport supported our airline
partners by suspending aircraft parking charges, allowing non-operating aircraft to park
free of charge.
Passenger services charge
Passenger services charge (PSC) income decreased by $52.1 million, or 28.1%, in the
2020 financial year. FY20 was the third year of the FY18-FY22 aeronautical pricing
schedule and included further reductions in international passenger service charges. On
22 February 2019, Auckland Airport discounted our previously published aeronautical
prices for FY20-FY22 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.
10
Auckland International Airport Limited

2019
$
2020
$
2020 price
change %
2021
$
2021 price
change %
International PSC
1
15.4414.91(3.4)15.212.0
Domestic PSC
1
2.482.625.62.869.2
Regional PSC
1
2.292.352.62.496.0
Transits PSC
1
4.825.116.05.6610.8
1. PSC charges applied to passengers two years and older.
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. In addition, retail income
is generated through Auckland Airport's Strata Lounge in the international terminal, as
well as off-airport duty and tax-free sales collected by passengers from our international
terminal collection points.
The 2020 financial year saw a continuation of our retail strategy providing the best of New
Zealand and the world to the travelling public. The year started with the completion of the
expanded Food and Beverage offering in the departure area of the international terminal
and an expansion of the food court landside in the domestic terminal. It was pleasing to
see these enhancements to the retail environment resonating with travellers, delivering
an increase in income per passenger and higher ASQ Survey scores reflecting improved
passenger amenity.
The Mall, our online duty and tax-free shopping experience, is now in its second year of
trading. International travellers are now able to purchase and collect our full online
catalogue as they depart or arrive at Auckland Airport. Customers are continuing to enjoy
tax-free savings on technology and core duty-free categories as well as the newly added
fashion accessories. The Mall sales increased by 90% on the prior year and transactions
increased by 37%.
In December 2019, Auckland Airport further extended our retail reach through our digital
channels. This provided the ability for customers to order and have items directly shipped
to them in mainland China. Auckland Airport’s loyalty programme, Strata Club, reached
another important milestone with in excess of 275,000 members in 2020, an increase
of over 25% on the prior year. The programme ties our retail, lounge and parking
products together to enable cross-purchasing through the provision of tailored offers to
members.
During the elevated COVID-19 alert levels, the majority of retail stores in both terminals
were temporarily closed. As New Zealand moved into Alert Level 1, domestic retailers
gradually reopened to service the increasing number of travellers. Reflecting the current
border restrictions, the majority of retailers within the international terminal still remain
closed due to the low number of travellers arriving or leaving the country.
Total retail income for the 2020 financial year was $141.5 million, a decrease of
$84.3 million, or 37.3%, on the previous financial year. Auckland Airport’s retail income
per international passenger was $17.45 for the 2020 financial year, a 14.9% decrease
on the prior year. This decline in income per international passenger was driven by the
support Auckland Airport offered to our tenants during the challenging operating
environment caused by the COVID-19 related travel restrictions.
Both international passenger spend rate (PSR) and domestic PSR held relatively stable
during the 2020 financial year. The completion of our Food and Beverage offering in the
international terminal resulted in an 8.1% increase in PSR. The constantly improving Duty
Free offerings have led to growth in the PSR also, of 11.4%, 2.4% and 1.2% for the
electronics, cosmetics and skincare, and liquor categories respectively, while wines
decreased by 5.8%. Growth in these areas offset the decline in categories such as
Destination, Luxury and Specialty.
Strata Lounge generated steady income growth of 16.0% at the half year prior to
COVID-19. However, revenue for the full year was down 25.0% on the prior financial year
due to the closure of the lounge when New Zealand went into Alert Level 4 in March 2020.
11
Financial report

Car parking income
Car parking income in the 2020 financial year was $50.3 million, a decrease of
$13.9 million or 21.7%. The average revenue per space decreased by 26.5% as a result
of lower demand in the second half of the financial year.
During the first eight months of the financial year, Auckland Airport continued our
investment in parking capacity, technology solutions and improving the product offering.
Completion of our new multi-storey car park and expansion of valet storage added a
total of 2,790 spaces. In preparation for work on future construction projects, around
1,000 spaces were closed during October 2019 and January 2020 for project-enabling
works and fuel pipeline works. With the suspension on the majority of capital works due
to the impact of COVID-19, parking capacity has been optimised again using some of the
available space that was previously set aside for capital works.
The table below outlines the number of spaces available at 30 June 2020 and 30 June
2019.
Parking capacity as at 30 June
20202019change% change
International terminal3,3153,392(77)(2.3)
Domestic terminal2,3963,226(830)(25.7)
Park and Ride
1
4,3721,4272,945206.4
Valet1,9957951,200150.9
Staff8003,092(2,292)(74.1)
Total12,87811,9329467.9
1. This includes spaces used for temporary car rental storage lease.
Demand for parking at the airport continues to be driven by New Zealand passenger
movements. In response to far lower passenger numbers, from April 2020, all staff have
been moved from Park and Ride to on-terminal parking, at both the domestic and
international terminals.
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
$109.2 million in the 2020 financial year, an increase of 1.3% on the previous financial
year. Property rental income (excluding aeronautical and retail rental income) was
$88.5 million in the 2020 financial year, an increase of $1.9 million, or 2.2%, on the
previous financial year. Revenue growth in the year reflected the completion of new
property assets such as Bapcor, Airways, Percy Café, Europcar and
Thrifty, as well as the full-year impact of developments completed during the previous
financial year, such as EBOS, DSV and Air New Zealand ULD Storage.
Soon to be completed projects, such as Foodstuffs, DHL Expansion, Interwaste,
Hellmann Worldwide Logistics, and the leasing of 27 Timberly Road, will positively impact
rental income in the 2021 financial year.
As a result of the COVID-19 pandemic, Auckland Airport supported our property tenants
in the fourth quarter through various rental abatements or deferrals.
Income from the ibis Budget Hotel fell $1.5 million, or 16.0%, compared to the previous
financial year reflecting lower occupancy of 76.2% in the year.
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 $23.0 million, a decrease of $1.4 million, or 5.7%, on the previous financial
year. This reduction was due to lower transport licence fees and revenue from marketing
contributions as a result of the COVID-19 travel restrictions. These were partially offset
by additional revenue from leased IT services.
12
Auckland International Airport Limited

Expenses
Total expenses including depreciation, interest and taxation were $494.6 million in the
2020 financial year, an increase of $16.9 million, or 3.5%, on the prior year.
Operating expenses
Following the imposition of travel restrictions associated with the COVID-19
pandemic, Auckland Airport instigated a cost reduction programme, generating
significant savings in discretionary and activity-based operating expenditure in the second
half of the year. However, these savings were dwarfed by $117.5 million of fixed asset
project write-offs, impairments and termination costs, plus $5.9 million of redundancy
costs and $7.3 million of provisions for expected credit losses as some customers
struggled under the impacts of COVID-19. Total operating expenses (excluding
depreciation, interest and taxation) were $306.6 million in the 2020 financial year, an
increase of $118.0 million, or 62.6%, on the prior year.
2020
$M
2019
$M% change
Operating expenses
Staff62.959.16.4
Asset management, maintenance and airport operations77.581.1(4.4)
Rates and insurance18.016.111.8
Marketing and promotions8.312.7(34.6)
Professional services and levies6.28.6(27.9)
Fixed asset write-offs, impairments and termination costs117.5-N/A
Other16.211.047.3
Total operating expenses306.6188.662.6
Depreciation112.7102.210.3
Interest71.878.5(8.5)
Taxation3.5108.4(96.8)
Total expenses494.6477.73.5
Staff costs rose $3.8 million, or 6.4%, in the year. This reflected an increase in head-
count in the first half of the year, plus $5.9 million of redundancy costs, partially offset by
the majority of staff working at 80% of their pay and 80% of hours in response to
COVID-19 and the receipt of the Government's Wage Subsidy.
Asset management, maintenance and airport operations expenses decreased by
$3.6 million, or 4.4%, in the 2020 financial year. A number of outsourced operations
were scaled down as a result of reduced aeronautical activity, including maintenance and
operation of baggage handling assets, bus services supporting airside operations and
Park and Ride, valet parking and the Strata Lounge. In addition, repairs and maintenance
activity was reduced as a result of lower asset utilisation, and airport operation costs
reduced following the hibernation of assets such as international terminal Pier B and Park
and Ride since travel restrictions were imposed.
Rates and insurance expenses increased by $1.9 million, or 11.8%, in the 2020 financial
year with rates accounting for $1.4 million of the increase. Rates increases were driven
by Auckland Council's average general rates increase of 2.5%, the delivery of several new
investment properties, as well as the delivery of new retail and commercial space within
the international and domestic terminals. Rates increases on developed investment
property are matched by offsetting increases in rates recoveries from tenants. The
increase in insurance, including fire service levy costs, was driven by the annualised
effect of the larger footprint of the terminal buildings.
Marketing and promotions expenses in the 2020 financial year declined by
$4.4 million, or 34.6%, as activity was scaled down reflecting the adverse aeronautical
environment.
13
Financial report

Fees for professional services saw a reduction of $2.4 million, or 27.9%, to $6.2 million
in the 2020 financial year, reflecting greater use of internal resources and the impact of
reductions as part of the company’s cost reduction plan.
During the year to 30 June 2020, Auckland Airport incurred $117.5 million of one-off
costs associated with the write-off, impairment and termination of capital works in
progress. The substantial reduction in passenger and aircraft movements due to
COVID-19 has created surplus capacity within key areas of the airport’s infrastructure.
These costs reflect the write-down and impairment of a number of projects no longer
considered necessary in the near term due to the capacity now available.
Other expenses increased by $5.2 million, or 47.3%, in the 2020 financial year, mainly
reflecting provisions that have been made for expected credit losses relating to airlines
and some retail tenants.
Depreciation
Depreciation expense in the 2020 financial year was $112.7 million, an increase of
$10.5 million, or 10.3%, on the previous financial year. This increase reflects
fixed assets commissioned in the year, the annualised impact of the fixed assets
commissioned partway through the 2019 financial year, and an increase in the
depreciable amount of the buildings and services asset class following their revaluation
at 30 June 2019.
Interest
Interest expense was $71.8 million in the 2020 financial year, a decrease of $6.7 million,
or 8.5%, on the previous financial year. The reduction in interest expense reflects the
combined effects of a decrease in the average interest rate for the year to 3.89%
from 4.28% and an increase in the proportion of interest costs that were capitalised into
capital works in progress.
Taxation
Taxation expense was $3.5 million in the 2020 financial year, a decrease of $104.9 million
on the previous financial year. The underlying tax expense was $6.4 million, a decrease
of $101.2 million, or 94.1%, on the previous financial year. Underlying tax excludes the
tax effect of fixed asset and financial derivatives revaluations. Underlying tax also
excludes a deferred tax adjustment following the Government's decision to re-introduce
depreciation deductions on commercial buildings for tax purposes. This amendment
applies from 1 April 2020 and the depreciation rate is 2.0% diminishing value. The
impact of this change increases the depreciable tax base for these assets, which results
in an immediate one-off reduction in deferred tax liability and a reduction in tax expense
of $44.7 million. While this transaction is non-cash in the year ended 30 June 2020, it
represents future tax benefits that will be realised as reduced income tax payments over
the remaining lives of the buildings.
Share of profit from associates
Our total share of the profit from associates in the 2020 financial year was $8.4 million,
comprising Tainui Auckland Airport Hotel Limited Partnership (TAAH) ($3.9 million) and
Queenstown Airport ($4.5 million). This was a $0.2 million increase on the $8.2 million
share of profit from associates in the previous financial year.
There was $0.8 million of fair value losses related to derivatives for TAAH in the 2020
financial year. In the 2019 financial year, the share of profit from associates did not
include any fair value gains and losses. Excluding these fair value changes, Auckland
Airport’s share of underlying profit from associates was up by $1.0 million, or 12.2%, to
$9.2 million for the 2020 financial year.
14
Auckland International Airport Limited

Queenstown Airport
Queenstown Airport's net profit after tax for the 2020 financial year increased by 6.0%
to $17.6 million. Auckland Airport’s 24.99% share of Queenstown Airport’s net profit
after tax was $4.5 million, a $0.4 million increase on the previous financial year.
2020
$M
2019
$M% change
Financial performance
Total revenue46.749.6(5.8)
EBITDAFI31.334.3(8.7)
Total net profit after tax17.616.66.0
Passenger performance
Domestic passengers1,287,0721,665,397(22.7)
International passengers583,219655,950(11.1)
Total passengers1,870,2912,321,347(19.4)
Queenstown Airport's passenger volumes were down 19.4% to 1,870,291 compared
with growth of 8.4% in the prior year. International passengers fell 11.1% and domestic
passengers decreased by 22.7%, both of which were impacted by subdued passenger
flows as a result of COVID-19 in the second half of the year.
In the 2020 financial year, Auckland Airport received a dividend of $2.1 million from our
investment in Queenstown Airport, relating to Queenstown Airport's 2019 financial year.
Queenstown Airport's directors have resolved not to pay a dividend for the 2020
financial year.
Tainui Auckland Airport Hotel Limited Partnership
At 30 June 2020, Auckland Airport had a 50% investment in the Novotel hotel joint
venture with Tainui Group Holdings. In 2017, Auckland Airport entered into an agreement
with Tainui Group Holdings and Accor Hotel Group to increase our 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 was completed in the 2020 financial year when Auckland Airport
purchased Accor Hotel Group’s 10% stake in the joint venture.
In the 2020 financial year, Auckland Airport’s share of underlying profit from this
investment was $4.7 million, an increase of $0.6 million, or 14.6%, compared with the
previous financial year. Auckland Airport's share of the joint venture's reported profit in
the 2020 financial year was $3.9 million.
The Novotel hotel’s average occupancy rate for 2020 financial year was 87.3%, down
from 93.1% in the 2019 financial year. The average daily rate decreased by 1.0%,
reflecting a more competitive hotel market environment across the Auckland region. As
a result of COVID-19, the Novotel entered into an exclusive contract with the Ministry of
Health for the Government to use the entire hotel for managed isolation services
throughout the fourth quarter.
The group assessed the joint venture for impairment following the economic impact of
COVID-19. A discounted cash flow valuation assessed that the recoverable amount was
lower than the carrying amount and a $7.7 million goodwill impairment was recognised.
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 $22.0 million of equity into this partnership.
During the year, the partnership commenced construction of a new 311 room five-star
Pullman Hotel with an initial expected completion date of March 2022. Work continues
on the project; however, construction has now been broken into two phases. The first
phase will involve completing the structure and full exterior so that the building is
15
Financial report

weather-tight. The construction contract has been renegotiated to commit the
partnership only to completing works in the first phase. The second phase involves the
completion of the remaining interior fit-out works of the hotel and will be undertaken when
the demand outlook is favourable.
Two of Auckland Airport’s senior management team 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 2020 financial year, investment property fair value changes resulted in a gain in the
income statement of $168.6 million, compared with a gain of $254.0 million in the
previous financial year. Improved land values for vacant land, firming of the capitalisation
rates of the property portfolio and the addition of new properties were the drivers of this
increase.
As at 30 June 2020, the land, infrastructure and runway, taxiway and aprons asset
classes within property, plant and equipment were revalued. These revaluations resulted
in a combined $645.7 million reduction in the carrying value of these three asset classes
comprising a $45.9 million expense to reported profit (representing downwards
revaluations in excess of prior revaluation reserve balances for these assets) and a
$599.8 million decrease in revaluation reserve (representing downwards revaluations
offsetting prior period upwards revaluations in the revaluation reserve). Further information
is included in note 2(f) of the financial statements.
Looking at each asset class separately, the $721.2 million reduction in the land valuation
within property, plant and equipment was dominated by the reduction in land value
under retail areas of the international and domestic terminals owing to COVID-19
impacts on forecast retail income. A total of $715.9 million of this downwards revaluation
was booked against prior period upwards revaluations held within the revaluation
reserve, with the remaining $5.3 million booked to reported profit.
The net upwards revaluation of infrastructure of $35.8 million was split $75.3 million
between upwards revaluations booked to the revaluation reserve and $39.5 million of
downwards revaluations booked to reported profit. Further information is included in note
3(c) of the financial statements.
The net upwards revaluation of the runway, taxiway and apron asset class of
$39.7 million was split between $40.8 million of upwards revaluations booked to the
revaluation reserve and $1.1 million of downwards revaluations booked to reported profit.
2020 Financial position analysis
As at 30 June
2020
$M
2019
$M% change
Non-current assets8,448.78,590.8(1.7)
Current assets848.5106.3698.2
Total assets9,297.28,697.16.9
Non-current liabilities2,192.82,104.24.2
Current liabilities467.3560.0(16.6)
Equity6,637.16,032.910.0
Total equity and liabilities9,297.28,697.16.9
As at 30 June 2020, the book value of Auckland Airport's total assets was
$9,297.2 million, an increase of $600.1 million, or 6.9%, on the prior year. This increase
in total assets reflects the capital expenditure in the year, the revaluation of investment
property and increased cash from the proceeds of the company's equity raise, partially
offset by a reduction in the land value within the property, plant and equipment class of
assets.
Shareholders’ equity was $6,637.1 million as at 30 June 2020, an increase of
$604.2 million, or 10.0%, on 30 June 2019. The movement in equity reflects the rise in
16
Auckland International Airport Limited

shares on issue following the $1.2 billion equity raise during the period, retained profit for
the year and the net revaluations in property, and property, plant and equipment
valuations booked through the revaluation reserve.
Capital expenditure
Category20202019%Key 2020 projects
Gross
capex
Write-offs and
impairments
Net capex
$M$M$M$Mchange
Aeronautical205.0(52.6)152.4106.043.8
Activity in the year was focused on design and
construction on several large multi-year aeronautical
projects including two new taxiways and six remote
aircraft stands, expansion of the arrivals biosecurity
screening area, the new Domestic Jet Hub, landside
expansion at the international terminal including a
new pedestrian plaza, and design activity on a future
second runway. As a result of the impact of
COVID-19 on future aeronautical demand, these
projects have been suspended.
Infrastructure
and other
52.7(3.6)49.146.06.7
Activity in the year included enabling works required
to facilitate the construction of key aeronautical-
related projects, delivery activity on the Northern
Transport Network, creation of dedicated High
Occupancy Vehicle lanes on State Highway 20B and
ongoing investment in infrastructure and core
operating systems. As a result of the impact of
COVID-19, the enabling works associated with
suspended projects have also ceased.
Property146.6(0.4)146.287.866.5
Activity in the year included completion of custom-
built premises for Airways' Auckland control centre,
Stage 1 of The Landing commercial centre, specialist
car rental storage facilities, a warehouse
development leased to ASX-listed Bapcor and a
development which is currently in the process of
being leased. Development on the purpose-built
facility for Foodstuffs NZ continued and design
activity on three pre-leased warehouse
developments commenced. Construction activity
was undertaken on the conversion of an existing
office building into a new 4-star hotel.
Retail14.0(3.3)10.719.0(43.7)
The 2020 capital expenditure included the
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. In addition, construction of
a domestic Strata Lounge was undertaken during
the period; however, this was suspended due to the
impact of COVID-19.
Car parking
14.7(2.3)12.425.3(51.0)
Activity in the year included the completion of a new
valet storage facility, commencing construction of a
3,000+ space Park and Ride South facility and
design of a 3,000+ space multi-storey car park to
be built in front of the current international terminal.
Both Park and Ride South and the multi-storey
carpark were suspended due to the impact of
COVID-19.
Total433.0(62.2)370.8284.130.5
Despite a strong start to the 2020 financial year, COVID-19 has had a significant impact
on both the current year and future development plans of Auckland Airport. In the year
to 30 June 2020, capital expenditure totalling $433.0 million was undertaken reflecting
a significant investment across the precinct and 52.4% up on the 2019 financial year. In
response to the COVID-19 outbreak, some capital expenditure projects were abandoned
and fully written off and others were suspended, with some of the latter category now
17
Financial report

subject to uncertain timing and scope. The carrying value of some suspended projects
has been impaired and, together with the project write-offs, this resulted in net capital
expenditure additions of 370.8 million in the 2020 financial year.
Significant investment in aeronautical infrastructure occurred in the year with four of the
company’s eight key aeronautical projects entering execution phase. Construction
activity began on the development of new taxiways and remote stands to the north and
west of Pier B, as well as enabling and design activity for the expansion of the landside
roading, public pick-up and drop-off areas, and a large multi-storey-car park in front of
the international terminal, the new arrivals biosecurity screening area and the Northern
Transport Network. In addition, design and enabling activities continued for the new
Domestic Jet Hub and construction activity commenced on the development of High
Occupancy Vehicle lanes on State Highway 20B.
The significant disruption to the business following the imposition of travel restrictions
associated with COVID-19 necessitated Auckland Airport suspending the majority of our
aeronautical capital programme in March 2020. Recognising the quieter operating
environment, we have taken the opportunity to bring forward repair and maintenance
works, including undertaking the replacement of the touchdown area of the 23L runway
with minimal disruption to operations and customers. This project was completed in
August 2020.
Investment property capital expenditure was underpinned by significant expenditure on
a pre-leased 85,000m
2
office and warehouse facility for Foodstuffs NZ Limited, which is
scheduled for completion in the 2021 financial year. In addition, a substantial amount of
physical works was undertaken on the conversion of an existing office building into a new
mid-range hotel. As a result of the impact of COVID-19, only the exterior and structural
elements of this project will be completed at this stage. A decision to proceed with the
internal hotel fit-out will be made when future demand conditions improve.
One-off costs relating to COVID-19
During the year to 30 June 2020, Auckland Airport incurred $117.5 million of one-off
operating costs associated with the write-off, impairment and termination of capital works
in progress that were either abandoned or suspended, with some of the latter category
now subject to uncertain completion timing and final scope.
Capital expenditure outlook for FY21
Capital investment in the year to 30 June 2021 is focused on completing existing roading
infrastructure projects, delivering core airfield renewals such as runway slab replacement
and apron works, upgrades to the baggage system to meet compliance requirements
and completing pre-leased property developments.
Reflecting this, capital expenditure for the 2021 financial year is forecast to be between
$250 million and $300 million, with the mid-point of the forecast range shown below.
Category
Forecast 2021
$M
Aeronautical114.0
Infrastructure and other55.0
Property development105.0
Retail and car parking1.0
Total capital expenditure275.0
The runway is at the heart of all our operations at Auckland Airport, and while the
downturn in flights that came with COVID-19 has had a significant impact on the
business, it has created an opportunity to increase airfield renewals activity including
runway slab replacement, apron rehabilitation and airside roading renewals. In 2021
Auckland Airport will complete the 23L slab replacement project (eastern approach),
undertake design and construction works on runway 05R slab replacement (western
approach), sections of taxiways Bravo and Kilo, airside roading and airfield ground
lighting renewals. In addition, we will replace an ageing airbridge at the international
terminal, upgrade sections of the baggage handling system in advance of pending
18
Auckland International Airport Limited

changes to baggage screening requirements and undertake significant renewal on
terminal lighting and fire systems.
Other infrastructure projects in 2021 include the completion of Northern Transport
Network works on George Bolt Memorial Drive and the High Occupancy Vehicle lanes
project on State Highway 20B. Both these projects will improve access to the airport
precinct from the north and south. In addition, Auckland Airport intends to continue to
invest in core IT infrastructure, including a major upgrade to the campus fibre network
to ensure diversification and resilience of service, investment in cyber security and
initiatives to restart the digital customer journey through the airport.
Property projects planned for 2021 include the completion of the Foodstuffs NZ office
and warehouse development, Auckland Airport's largest single investment property
development to date, and an additional three pre-leased industrial developments. In
addition, Auckland Airport and Tainui Group Holdings plan to make further equity
contributions to the Pullman Hotel joint venture with construction activity planned on the
new hotel to complete external and structural elements.
While no major new terminal development is planned in 2021, the future development
pathway for Auckland Airport will continue to be evaluated including a feasibility
investigation into relocating domestic jet operations from the current domestic terminal
to the international terminal. The worldwide COVID-19 pandemic will continue to impose
significant uncertainty on the future development activity for the airport; however,
Auckland Airport remains committed to the principle of developing new capacity as and
when demand triggers are met.
Borrowings
As at 30 June 2020, Auckland Airport’s total borrowings were $2,145.2 million, a
decrease of $45.2 million or 2.1% on the previous year. The decrease in borrowings
reflects debt repayments during the year partially, offset by increases in the fair value of
existing debt. This is mainly owing to continued reductions in market interest rates and
further weakening of the New Zealand dollar exchange rate.
All foreign-sourced debt (namely the USPP and the AMTN 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. The USPP debt carrying value increased by $60.5 million and
the AMTN debt carrying value increased by $19.2 million. These exchange rate
movements were matched by equal and offsetting movements in the fair value of the
associated cross-currency interest rate swaps.
At 30 June 2020, Auckland Airport’s borrowings comprised: USPP notes totalling
$692.4 million; AMTN notes totalling $330.9 million; New Zealand fixed rate bonds
totalling $725.0 million; New Zealand floating rate bonds totalling $100.0 million; drawn
bank facilities totalling $205.0 million; and commercial paper totalling $91.9 million.
19
Financial report

Short-term borrowings with a maturity of one year or less accounted for $320.8 million,
or 15.0%, of total borrowings. This was a decrease on the previous year’s
$441.8 million. Current debt is made up of $91.9 million of commercial paper, US
$50.0 million of USPP borrowings that mature in February 2021 and a $150.0 million
fixed rate bond that matures in May 2021.
As at 30 June 2020, Auckland Airport had total bank facilities of $1,141.3 million, of
which $205.0 million was drawn and $936.3 million was available in a standby capacity.
In April 2020 Auckland Airport sought covenant waivers from USPP noteholders and
bank lenders in response to the expected impact of travel restrictions from COVID-19.
Auckland Airport also extended all bank facilities that were to mature before 31 December
2021. At 30 June 2020, Auckland Airport had a mix of drawn and undrawn facilities with
all eight banking counterparties, a full breakdown of which is available in note 18(d) of the
financial statements.
The commercial paper programme had a balance of $91.9 million at 30 June 2020. As
the commercial paper is supported by undrawn facilities which mature in late FY23, they
are included in the one-to-three year bracket for the purpose of the following debt
maturity profile chart as at 30 June 2020, matching the maturity of the supporting bank
facilities.
Auckland Airport manages our exposure to financial risk on a prudent basis. This is
achieved by spreading borrowings across various interest rate reset 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(d) of the financial
statements.
Credit metrics and key lending covenants
Covenant20202019% change
Gearing≤ 60%23.5%25.9%
Interest coverage≥ 1.5x2.62x5.87x
Debt to enterprise value19.4%15.5%
Net debt to enterprise value12.5%15.3%
Debt to underlying EBITDAFI5.0x3.6x38.9
Funds from operations interest cover3.4x5.4x(37.0)
Funds from operations to net debt18.6%18.6%-
Weighted average interest cost3.89%4.28%
Average debt term to maturity (years)4.664.1213.1
Percentage of fixed borrowings65.4%60.1%
Credit rating
As at 30 June 2020, Standard & Poor’s long-term credit rating of Auckland Airport was
‘A- Stable’ and the short-term credit rating was 'A2'.
20
Auckland International Airport Limited

Cash flow
Cash flow summary
2020
$M
2019
$M% change
Net cash inflow from operating activities
1
175.8375.9(53.2)
Net cash outflow from investing activities
2
(396.6)(318.7)24.4
Net cash inflow/(outflow) from financing activities
3
948.8(126.6)(849.4)
Net (decrease)/increase in cash held728.0(69.4)(1,149.0)
1 Net cash inflow from operating activities was $175.8 million in the 2020 financial year, a decrease of $200.1 million, or 53.2%, on the previous financial year, which
is broadly in line with the decline in earnings during the year.
2 Net cash outflow applied to investing activities was $(396.6) million in the 2020 financial year, an increase of $77.9 million, or 24.4%. The increase in outflows from
investing activities was the result of an increase in the capital expenditure programme in the 2020 financial year.
3 Net cash inflow from financing activities was $948.8 million in the 2020 financial year, an increase of $1,075.4 million, or 849.4%, on the previous financial year.
This was mainly due to the completion of the $1.2 billion equity raise.
2020 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.
However, dividends are temporarily suspended while Auckland Airport has financial
covenant waivers in place with our lenders. The dividend suspension is expected from
the reporting periods ending 30 June 2020 to 31 December 2021. The dividend policy
is reviewed annually.
Share price performance and total shareholder returns
On the back of a challenging trading environment brought about by the COVID-19
pandemic, Auckland Airport has seen significant share price decline in the year to 30 June
2020, with our share price decreasing from $9.85 as at 30 June 2019 to $6.57 as at
30 June 2020. Total shareholder return, including share price movement and dividends
relating to the 2020 financial year, was -33.3%.
Five-year compound average total shareholder return
Share price
opening
Share price
closing
DividendsTotal returnAverage annual
shareholder return
$$cps$%
1 July 2015 to 30 June 20204.946.5782.002.458.4%
21
Financial report

Financial statements
FOR THE YEAR ENDED 30 JUNE 2020
22
Auckland International Airport Limited

Consolidated income statement
FOR THE YEAR ENDED 30 JUNE 2020
20202019
Notes
$M$M
Income
Airfield income100.6127.6
Passenger services charge133.0185.1
Retail income5141.5225.8
Rental income5109.2107.8
Rates recoveries7.76.7
Car park income50.364.2
Interest income1.71.8
Other income23.024.4
Total income
567.0743.4
Expenses
Staff562.959.1
Asset management, maintenance and airport operations77.581.1
Rates and insurance18.016.1
Marketing and promotions8.312.7
Professional services and levies6.28.6
Fixed asset write-offs, impairment and termination costs5117.5-
Other expenses516.211.0
Total expenses
306.6188.6
Earnings before interest expense, taxation, depreciation, fair value adjustments and
investments in associate and joint ventures (EBITDAFI)
260.4554.8
Investment property fair value change12168.6254.0
Property, plant and equipment fair value revaluation11(a)(45.9)(3.8)
Derivative fair value change18(b)(1.9)(0.6)
Share of profit of associate and joint ventures88.48.2
Impairment of investment in joint venture8(7.7)-
Earnings before interest, taxation and depreciation (EBITDA)
381.9812.6
Depreciation11(a)112.7102.2
Earnings before interest and taxation (EBIT)
269.2710.4
Interest expense and other finance costs571.878.5
Profit before taxation
197.4631.9
Taxation expense7(a)3.5108.4
Profit after taxation attributable to the owners of the parent
193.9523.5
CentsCents
Earnings per share
Basic and diluted earnings per share1015.1642.79
The notes and accounting policies on pages 29 to 74 form part of, and are to be read in conjunction with, these financial statements.
23
Financial statements

Consolidated statement of comprehensive income
FOR THE YEAR ENDED 30 JUNE 2020
20202019
Notes
$M$M
Profit for the year
193.9523.5
Other comprehensive income
Items that will not be reclassified to the income statement
Net property, plant and equipment revaluation movement11(a), 16(b)(599.8)87.6
Tax on the property, plant and equipment revaluation reserve16(b)(32.5)(24.6)
Items that will not be reclassified to the income statement
(632.3)63.0
Items that may be reclassified subsequently to the income statement:
Cash flow hedges
Fair value losses recognised in the cash flow hedge reserve16(d)(44.5)(47.1)
Realised (gains)/losses transferred to the income statement16(d)(2.2)1.6
Tax effect of movements in the cash flow hedge reserve16(d)13.113.3
Total cash flow hedge movement(33.6)(32.2)
Movement in cost of hedging reserve16(e)2.7(4.8)
Tax effect of movement in cost of hedging reserve16(e)(0.8)2.3
Items that may be reclassified subsequently to the income statement
(31.7)(34.7)
Total other comprehensive income
(664.0)28.3
Total comprehensive income for the year, net of tax attributable to the owners of the parent
(470.1)551.8
The notes and accounting policies on pages 29 to 74 form part of, and are to be read in conjunction with, these financial statements.
24
Auckland International Airport Limited

Consolidated statement of changes in equity
FOR THE YEAR ENDED 30 JUNE 2020
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
associate
and joint
ventures
Retained
earningsTotal
Notes
$M$M$M$M$M$M$M$M$M
For the year ended
30 June 2020
At 1 July 2019
468.2(609.2)4,968.81.4(67.1)(5.8)28.81,247.86,032.9
Profit for the year-------193.9193.9
Other comprehensive
income--(632.3)-(33.6)1.9--(664.0)
Total comprehensive
income
--(632.3)-(33.6)1.9-193.9(470.1)
Reclassification to
retained earnings16(b)--(2.8)----2.8-
Shares issued151,210.4-------1,210.4
Long-term incentive
plan16(c)---0.2----0.2
Dividend paid9-------(136.3)(136.3)
At 30 June 2020
1,678.6(609.2)4,333.71.6(100.7)(3.9)28.81,308.26,637.1
For the year ended
30 June 2019
At 30 June 2018
404.2(609.2)4,913.91.3(38.2)-28.8981.35,682.1
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)28.8981.35,682.1
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(b)--(8.1)----8.1-
Shares issued1564.0-------64.0
Long-term incentive
plan16(c)---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)28.81,247.86,032.9
The notes and accounting policies on pages 29 to 74 form part of, and are to be read in conjunction with, these financial statements.
25
Financial statements

Consolidated statement of financial position
AS AT 30 JUNE 2020
20202019
Notes
$M$M
Non-current assets
Property, plant and equipment11(a)6,060.86,577.1
Investment properties122,042.71,745.4
Investment in associate and joint ventures8114.7105.7
Derivative financial instruments18230.5162.6
8,448.78,590.8
Current assets
Cash and cash equivalents13765.337.3
Trade and other receivables1446.269.0
Taxation receivable21.6-
Derivative financial instruments1815.4-
848.5106.3
Total assets
9,297.28,697.1
The notes and accounting policies on pages 29 to 74 form part of, and are to be read in conjunction with, these financial statements.
26
Auckland International Airport Limited

20202019
Notes
$M$M
Shareholders’ equity
Issued and paid-up capital151,678.6468.2
Reserves163,650.34,316.9
Retained earnings1,308.21,247.8
6,637.16,032.9
Non-current liabilities
Term borrowings18(a)1,824.41,748.6
Derivative financial instruments18134.688.4
Deferred tax liability7(c)231.7265.3
Other term liabilities2.11.9
2,192.82,104.2
Current liabilities
Accounts payable and accruals17106.3101.5
Taxation payable-15.3
Derivative financial instruments183.0-
Short-term borrowings18(a)320.8441.8
Provisions2137.21.4
467.3560.0
Total equity and liabilities
9,297.28,697.1
These financial statements were approved and adopted by the Board on 20 August 2020.
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 29 to 74 form part of, and are to be read in conjunction with, these financial statements.
27
Financial statements

Consolidated cash flow statement
FOR THE YEAR ENDED 30 JUNE 2020
20202019
Notes
$M$M
Cash flow from operating activities
Cash was provided from:
Receipts from customers586.0756.0
Interest received1.62.0
587.6758.0
Cash was applied to:
Payments to suppliers and employees(242.5)(203.6)
Income tax paid(94.2)(101.1)
Interest paid(75.1)(77.4)
(411.8)(382.1)
Net cash flow from operating activities
6175.8375.9
Cash flow from investing activities
Cash was provided from:
Proceeds from sale of property, plant and equipment0.1-
Proceeds from sale of investment properties22(a)-1.5
Dividends from associate and joint ventures814.99.2
15.010.7
Cash was applied to:
Purchase of property, plant and equipment(240.5)(239.1)
Interest paid - capitalised11(a), 12(11.8)(7.0)
Expenditure on investment properties(136.1)(81.0)
Investment in joint ventures8(23.2)(2.3)
(411.6)(329.4)
Net cash flow applied to investing activities
(396.6)(318.7)
Cash flow from financing activities
Cash was provided from:
Increase in share capital151,178.1-
Increase in borrowings18(a)125.0150.0
1,303.1150.0
Cash was applied to:
Decrease in borrowings18(a)(250.0)(75.0)
Dividends paid9, 15(104.3)(201.6)
(354.3)(276.6)
Net cash flow applied to financing activities
948.8(126.6)
Net increase/(decrease) in cash held728.0(69.4)
Opening cash brought forward37.3106.7
Ending cash carried forward
13765.337.3
The notes and accounting policies on pages 29 to 74 form part of, and are to be read in conjunction with, these financial statements.
28
Auckland International Airport Limited

29
Financial statements
Notes and accounting
policies
FOR THE YEAR ENDED 30 JUNE 2020

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, associate and joint ventures (the
group). There are five active 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 (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 20 August 2020.
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 16 Leases is effective for annual periods beginning on or
after 1 January 2019. The group has applied NZ IFRS 16 from
1 July 2019. When applying the new standard, the group reviewed:
• Leases where the group is the lessor and has concluded that
these will remain as operating leases under NZ IFRS 16; and
• Leases where the group is the lessee and has concluded that
there is no material impact of NZ IFRS 16 on the financial
statements.
Application of this standard by the group has not materially affected
any of the amounts recognised in these financial statements.
However, the impact of COVID-19 has resulted in the group
providing rent abatements to tenants, which materially affect the
2020 financial statements. The group has assessed that the rent
abatements are not lease modifications that would be spread over
the remaining terms of the leases, as there were pre-existing
contractual obligations to adjust rents for the impact of COVID-19.
The group has therefore recognised the abatements as negative
variable lease payments with a reduction to 2020 income.
The application of this standard resulted in additional disclosures
relating to the disaggregation of leased vs non-leased assets (refer
to note 11 and note 12) as well as additional qualitative disclosures
that are included in note 2(f) and note 2(g).
There are no other new or amended standards that are issued but
not yet effective that are expected to have a material impact on the
group.
30
Notes and accounting policies CONTINUED
FOR THE YEAR ENDED 30 JUNE 2020
Auckland International Airport Limited

(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 inter-company balances and
transactions, income and expenses, and profit and losses resulting
from transactions within the group have been eliminated in full.
(e) Investments in associate and joint ventures
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 associate and joint ventures’ 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 associate and joint
ventures. 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
Leased assets
Space within the terminals and certain properties used for
aeronautical purposes, where the group acts as a lessor, are
leased to tenants under operating leases with rentals payable
monthly. Lease payments for some contracts include CPI
increases, sales-based concession fees and adjustments to
rentals depending on the passenger numbers.
To manage credit risk exposure where considered necessary, the
group may obtain bank guarantees for the term of the lease.
Although the group is exposed to changes in the residual value at
the end of the current leases, the group typically enters into new
operating leases and therefore will not immediately realise any
reduction in residual value at the end of these leases. Expectations
about the future residual values are reflected in the fair value of the
properties.
(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.
31
Financial statements