AIA – Investor presentation on intended retail bond offer

Market Release | 1 November 2021

Auckland Airport investor presentation
in relation to intended retail bond offer

As announced on 1 November 2021 Auckland International Airport Limited (“Auckland
Airport”) is considering an offer of fixed rate bonds maturing in November 2026 to New
Zealand retail investors and to institutional investors.

The offer will be made pursuant to the Financial Markets Conduct Act 2013 as an offer of debt
securities of the same class as Auckland Airport’s existing quoted debt securities. The bonds
are expected to be quoted on the NZX Debt Market. It is expected that full details of the bond
issue will be released prior to the offer opening, which is expected to be on or around 8
November 2021.

A copy of an investor presentation to be made by Auckland Airport is attached.

Investors can register their interest with the Joint Lead Managers (details below) or a financial
adviser. Indications of interest will not involve an obligation or commitment of any kind. No
money is currently being sought and no bonds can be applied for or acquired until the offer
opens and the investor has received a copy of the offer document in relation to the bonds.

Ends

For assistance, please contact:

Campbell De Morgan
Treasury Specialist
+64 27 478 3243
campbell.demorgan@aucklandairport.co.nz


Bank of New Zealand (BNZ)
0800 284 017


Westpac Banking Corporation (ABN 33 007 457 141) (acting through its New Zealand
branch)
0800 772 142

---

Investor Update
Debt Capital Markets
November 2021

November Investor Update
Important Notice
Disclaimer
Auckland International Airport Limited (Auckland Airport) is considering an offer of fixed rate bonds maturing in November 2026 to New Zealand retail investors and institutional
investors.
No money is currently being sought and no bonds can be applied for or acquired until the offer opens and the investor has received a copy of the offer documents in relation to
the bonds. If Auckland Airport offers the bonds, the offer will be made in accordance with the FMCA as an offer of debt securities of the same class as existing quoted debt
securities.
This presentation is for preliminary information purposes only, does not constitute a recommendation by Auckland Airport, Bank of New Zealand (Joint Lead Manager), Westpac
Banking Corporation (Joint Lead Manager) or The New Zealand Guardian Trust Company Limited, nor any of their respective directors, employees or agents to subscribe for, or
purchase, any of bonds and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. The information in
this presentation is given in good faith and has been obtained from sources believed to be reliable and accurate at the date of preparation, but its accuracy, correctness and
completeness cannot be guaranteed.
All ofthe data provided in this presentation is derived from publicly available information in relation to Auckland Airport (including the annual report of Auckland Airport for its
financial year ended 30 June 2021), unless otherwise indicated. Any internet site addresses provided in this presentation are for reference only and, except as expressly stated
otherwise, the content of any such internet site is not incorporated by reference into, and does not form part of, this presentation.
This presentation may contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy, of Auckland Airport.
Auckland Airport gives no assurance that the assumptions upon which Auckland Airport based its forward lookingstatements on will be correct, or that its business and
operations will not be affected in any substantial manner by other factors not currently foreseeable by Auckland Airport or beyond its control. Accordingly, Auckland Airport can
make no assurance that the forward lookingstatements will be realised.
All currency amounts are in New Zealand dollars unless otherwise stated and figures, including percentage movements, are subjectto rounding.
Neither of the Joint Lead Manager nor any of its directors, officers, employees and agents:
(a)accept any responsibility or liability whatsoever for any loss arising from this presentation or its contents or otherwise arising in connection with the offer of bonds;
(b)authorisedor caused the issue of, or made any statement in, any part of this presentation; and
(c)make any representation, recommendation or warranty, express or implied regarding the origin, validity, accuracy, adequacy, reasonableness or completeness of, or any
errors or omissions in, any information, statement or opinion contained in this presentation and accept no liability (except to the extent such liability is found by a court to
arise under the FMCA or cannot be disclaimed as a matter of law).
Auckland Airport and their directors, officers, employees and agents expressly disclaim any and allliability relating to or resulting from inaccurate or incomplete information or
the use of or reliance on all or any part of the information contained within this presentation, except to the extent such liability is found by a court to arise under FMCA or cannot
be disclaimed as a matter of law.
This presentation is dated 1 November 2021.
2

Agenda
1.Overview
2.Our continuing journey
3.Financial information
Appendices

Overview

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
AeronauticalRetailTransport
Investment PropertyHotelsQueenstown Airport
Company Overview
5
Diverse and complementary business activities

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
Auckland Airport, a gateway to New Zealand...
6
Notes:
1.Pre-COVID-19, for the 12 months to 31 Dec 2019
•NewZealand’slargestcommercialairportservingthe
country’slargestcity
•Pre-COVID,AucklandAirporthadanextensive
domesticnetworkserving20destinations
•Significantmarketsharewith2/3rdsofalldomestic
sectorseitheroriginating,passingthroughorending
inAuckland
1
•Processed9.5milliondomesticpassengersinthe12
monthsto31Dec2019
•HubtoAirNewZealand,thecountry’smaindomestic
carrierandthedomestichubforJetstarNZ
•Locatedon1,500hectaresoffreeholdland26km
fromAuckland’scentralbusinessdistrict
•Noflightcurfew,capableofoperating24hoursaday,
7daysaweekfromasingle3,635mrunway
•Provisionforasecondrunwayinthefuturewillcater
forAuckland’saviationrequirementsforthe
foreseeablefuture
Extensive domestic aeronautical network pre-COVID
1

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
...and New Zealand to the world
7
Pre-COVID,gatewayforNewZealandtotheworld:
•connectingNewZealandto45internationaldestinationsacrossAsia,thePacificandtheAmericas
•75%ofallinternationalvisitorsand92%ofalllong-haularrivalsenteringNewZealandthroughAuckland
1
•AucklandAirportprocessed10.5millioninternationalO&Dpassengersand1.0milliontransitpassengers
1
Notes:
1.Pre-COVID-19, for the 12 months to 31 Dec 2019

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
-
2
4
6
8
10
12
14
19951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020
2021
PAX (m) in the 12 months to June
International (incl Transits)Domestic
COVID has had a significant impact on the business
8
Source: Auckland Airport
Auckland Airport total annual passenger movements
Pre-COVID, passenger numbers at Auckland Airport were
resilient to a number of major external shocks over the long
term...
...but COVID has continued to impact passenger numbers
with activity down on pre-COVID levels
Whilst positive to see a recovery in passenger numbers as travel restrictions eased, total passenger
numbers remain well below pre-COVID levels
Monthly passenger numbers
1
0%
20%
40%
60%
80%
100%
120%
Jul-19Oct-19Jan-
20
Apr-20Jul-20Oct-20Jan-
21
Apr-21Jul-21Oct-21
FY20FY21FY22
Monthly PAX (% of FY19)
International (incl Transits)Domestic
Notes:
1. October figures based on forecasts
Source: Auckland Airport

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
We have taken decisive action to respond to COVID-19
9
Decisive action taken to mitigate the impact of COVID
•In 2020 Auckland Airport outlined a three-stage
plan Respond, Recover and Accelerate for its
management through and beyond the
pandemic. The Respondstage included:
‒a comprehensive approach to scaling down
the business;
‒reducing operating and capital expenditure;
‒suspending or deferring major infrastructure
projects;
‒restructuring bank debt; and
‒raising $1.2 billion new equity from
shareholders
•Having moved quickly to respond to the challenging
environment that COVID presented, in 2021
Auckland Airport has gone further to:
‒scale down activity to reflect the current
operating environment;
‒invest in critical infrastructure;
‒repay $640 million of debt to reduce interest
costs;
‒extend short-term bank maturities;
‒modify our interest coverage covenant; and
‒continue to support our tenants and business
partners who are critical to the long-term success
of the precinct

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
10
We haven't wasted a day getting after what matters
Safe management of border and
leading the design of future
border models
Investing in core asset resilience
and developing a new trigger-
based infrastructure programme
Stabilisingexisting commercial
business and establishing new
foundations
Shored up liquidity immediately following the first lockdowns, disciplined operational and
capital expenditure throughout 2021, negotiated extensions to nearly $700 million of soon-to-
mature bank facilities and introduced an EBITDA based interest cover covenant

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
Key gateway to New ZealandExpected to benefit from COVID
recovery
Significant commercial property
portfolio
Significant freehold
assetbase
Strong capital expenditure and
operating cost control
Proactive capital
management
Credit highlights
11
$9.8bn
Book value of assets at
30 June 2021
0
20
40
60
80
100
120
FY10FY12FY14FY16FY18FY20
Rental income
0%
20%
40%
60%
80%
100%
120%
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
FY20FY21FY22
International (incl Transits)
Domestic
Monthly PAX (%of FY19)
188.6
179.0
11.7
11.0
7.8
7.3
3.0
2.6
3.0
132.7
80.0
100.0
120.0
140.0
160.0
180.0
200.0
Opex
(FY19)
Normalised
opex (FY20)
Staff
Outsourced
operations
Utilities &
cleaning
Marketing &
promotions
Repairs &
maintenance
Professional
services
Other
Normalised
opex (FY21)
NZ$m

Our continuing
journey

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
13
Auckland Airport’s COVID strategy
Unprecedented reduction in passengers has impacted the entire industry
Time
Phases of Auckland Airport’s COVID strategy
Respond
Recover
Accelerate
Normal
cycle
Crisis cycle
•The global spread of COVIDand the subsequent imposition of
travel restrictions has had a profound impact on the aviation
industry
•The reduction in traffic has heavily impacted revenue across the
business, but primarily in the passenger connected parts of
aeronautical, retail, transport and hotel business
•In addition, we have also seen a secondary impact of the travel
restrictions on tenants in the airport’s investment property
division that are directly linked to passenger movements, e.g.
rental car
•The scale of the impact meant a change in Auckland Airport’s
corporate strategy from Faster, Higher, Strongerto one of
Respond, Recover and Accelerate

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
First line of defence
•Close coordination with government, border agencies
and airlines to reinstate domestic services and manage
ongoing changes to the international border
•Introduced new protocols for cleaning, physical
distancing, testing and passenger communications to
assiststaff, travellersand support the new border
requirements
•Collaborated with partners on the Safe Border projects
to establish:
‒a blueprint for a trans-Tasman Safe Travel Zone; and
‒a quantitative risk-based border framework
•In April 2021, the international terminal was split into
two areas to support the reopening of quarantine-free
travel between New Zealand and other countries
•Currently, Auckland Airport is playing a leading role in a
public-private sector work programmeto develop
options for future border settings under the
reconnecting New Zealanders portfolio
The airport’s primary objective throughout the pandemic has been on ensuring the safe and secure
operation of our facility to protect New Zealand’s border
14
Zone B –Health management zone
Zone A –Quarantine free travel

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
Continuing to invest in critical infrastructure
•Activity during 2021 focused on the upgrade and renewal of
core infrastructure including runway, airfield, utilities and
roading
•Following being halted in April 2020, the Airport infrastructure
development programmewas reprioritisedto reflect a post
COVID environment:
‒new projects will be triggered based on either regulatory
requirements, asset replacement or aeronautical demand
with significant additions of new capacity aligned with the
recovery in aviation; and
‒completing existing projects focused on asset renewal and
resilience
•The key element of our infrastructure programmeover the
next five years will be a new domestic terminalthat is
integrated with international operations
•In 2022, the terminal integration programmewill focus on
enabling works for the domestic terminal
The low-volume of aeronautical activity continues to provide a unique opportunity to accelerate critical
infrastructure upgrades whilst minimisingdisruption
15
Runway slab replacement programme
Construction at the George Bolt Memorial Drive intersection

16
Four key projects underway whilst four remain on hold
1
2
3
4

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
17
Artist impression of the new domestic terminal

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
18
A new transport hub at the front door of the terminals
Concept design of the Transport Hub
Pick up and drop off on the ground floor of the Transport Hub
•A new transport hub is planned to integrate public transport
with commercial operators and parking for the general public
at the front door of the international and new domestic
terminals
•The new facility will provide approximately 2,500carparks
alongside a ground floor pick-up and drop-off to enable close
and covered access to the terminal precinct
•Facility part of a comprehensive transport plan formulti-
modetransport access to the terminal precinct and considers
both current and future developments (e.g. future expansion
to parking capacity)
•Transport hub design also provides a path for mass transport
connectivity
A new transport hub will provide improved passenger amenity, connectivity and capacity for the
integrated terminal precinct

Portfolio Overview
Portfolio
$117m
Rent Roll
99%
Occupancy
$2.6bn
Portfolio Value
9.7 years
WALT
60%
Assets under 10 years old
Development
+50
Tenancies created since 2015
75%
Of developments pre-
committed
$160m
of development pre-
commitments
8.1ha
Of development ready land.
1
Performance
A Grade
Tenant Covenants
13%
Rent Roll CAGR
(5 years)
20%
Portfolio Value CAGR
(5 Years)
100%
Of bespoke projects delivered
within budget
Notes:
1Information as at 30 June 2021
2Excludes 2.2ha of land locked expansion land

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
Illustrative only, actual layout will vary
Exciting fashion outlet centre planned for the precinct
100+ stores
m
2
23,000+

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
21
Operating sustainably to create enduring value
As a long-term multi-generational business, it is natural for us to take a long-term approach to our place
in the world, the New Zealand economy and the local environment and community in which we operate
Purpose
Kaupapa
Creating value for our business,
shareholders, partners, customers and
New Zealand
Place
Kaitiakitanga
Creating value for future generations and
protecting the planet
People
Whānau
Creating value for our employees
Community
Hapori
Creating value for Auckland
•Auckland Airport has developed a new
sustainability strategy and goals that build
on our significant achievements over the
last 15 years
•Our sustainability strategy is framed by
four pillars of Purpose, Place, People and
Community

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
22
A pathway to Net Zero
For the first time, we have set a pathway to reach Net Zero
scope 1 & 2 carbon emissions by 2030
•This means reducing our scope 1 and 2 emissions as far as is
feasible, which will be achieved by:
‒phasing out the use of natural gas in the terminal;
‒electrifying our corporate vehicle fleet;
‒using refrigerants with the lowest global warming potential
possible; and
‒using renewable electricity
•In 2030, should there be any residual emissions these will be
neutralisedby the purchase of certified carbon removals
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY19FY20FY21
Scope 1 emissionsScope 2 emissions
-
50
100
150
200
250
300
350
400
FY19FY20FY21
Thousand m
3
-
500
1,000
1,500
2,000
2,500
3,000
FY19FY20FY21
Tonnes
Carbon Emissions
Water consumption
Waste to landfill

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
Purpose
Kaupapa
Place
Kaitiakitanga
People
Whānau
Community
Hapori
85%
Of customers rate their
overall experience as
‘excellent’ or ‘very good’ by
2030
100%
Of procurement activity is
aligned with sustainable
procurement guidelines
ISO20400 by 2030
TSR
Rolling 3 year total
shareholder return exceeds
cost of equity by 1%
Net Zero
Scope 1 and 2 carbon
emissions by 2030
20%
Reduction in potable water
use by 2030 from 2019 levels
20%
Reduction in waste to landfill
by 2030 from 2019 levels
40 | 40 | 20
Gender balance across
Auckland Airport’s Board,
Leadership Team and its
direct report populations by
2025
Safety
Year on year improvement in
number of high-quality safety
observations per employee
20%
Of people leaders of Maori /
Pasifika ethnicity by 2030
Ethnicity
Workforce reflective of the
ethnicity of New Zealand by
2030
40%
Of employees participating in
community volunteer
programme by 2030
Apprenticeship
Create a pathway for women,
Maori and Pasifika into the
trades, with
30% of total trade staff
sourced from a targeted
apprenticeship scheme by
2030
23
Our long-term ambitions

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
24
Positioning for a post-COVID world
Re-establishing our aeronautical
network
Supporting the recovery in travel
and trade for New Zealand
Driving the recovery in our
commercial business
INSERT IMAGE OF EMPTY
RETAIL IN INT

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
25
Positioning for a post-COVID world
DriversEnablersAttractiveness of New Zealand
Pent up demand for travel and a growing middle class
New Zealand and Auckland population growth
Vaccine rates across the region increasing
Next generation aircraft and fleet availability
Diverse range of activities
Long-term fundamentals remain
Infrastructure programme
Seen as a safe destination

Financial
information

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
27
Recent performance impacted by travel restrictions
1.2020 includes capital expenditure write-offs, impairments and contractor termination costs of $117.5 million, redundancy costs of $5.9 million and credit losses of $7.3 million in 2020. 2021 includes
a net reversal of $16.9m of fixed asset impairment and termination costs and a $4.2m reversal of expected credit losses
2.A reconciliation between profit after tax and underlying profit after tax is included in the Appendix
For the year ended 30 June
$m
20212020201920182017
Revenue
281.1567.0743.4683.9629.3
Expenses
109.6306.6188.6177.5156.2
Earnings before interest, taxation, depreciation,
fair value adjustments and investments in associates(EBITDAFI)
1
171.5260.4554.8506.4473.1
EBITDAFI Margin61.0%45.9%74.6%74.0%75.2%
Share of profit / (loss) from associates
21.18.48.216.719.4
Gain on sale of associates
---297.4-
Impairment on investment in JV--7.7---
Derivative fair value (decrease) / increase
-0.5-1.9-0.6-0.72.5
Property, plant and equipment revaluation
-7.5-45.9-3.8--
Investment property revaluation
527.3168.6254.0152.291.9
Depreciation expense
124.7112.7102.288.977.9
Interestexpense
94.071.878.577.272.8
Taxationexpense
29.03.5108.4155.8103.3
Reported net profit after tax
464.2193.9523.5650.1332.9
Underlying profit / (loss)after tax
2
-41.8188.5274.7263.1247.8

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
28
Property growth, other segments declined
For the year ended 30 June
$m
20212020201920182017
Airfield income
64.0100.6127.6
122.1119.6
Passenger services charge
24.2133.0185.1
179.1174.3
Retail income
17.8141.5225.8
190.6162.8
Car park income
28.750.364.2
61.056.3
Rental income
115.2109.2107.8
97.684.9
Other income
31.232.432.9
33.531.4
Total revenue
281.1567.0743.4
683.9629.3

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
29
Balance sheet remains strong
As at 30 June
$m
20212020201920182017
Cash
79.5765.337.3106.745.1
Trade and other receivables
25.434.769.071.555.5
Other current assets
20.937.0-0.23.4
Current assets
125.8837.0106.3178.4104.0
Property, plant and equipment
6,832.06,060.86,577.16,378.04,947.8
Investment properties
2,641.42,054.21,745.41,425.61,198.0
Investment in associates
154.4114.7105.7104.4171.6
Derivative financial instruments
29.2230.5162.6110.482.1
Total assets
9,782.89,297.28,697.18,196.86,503.5
Borrowings
1,392.82,145.22,190.52,060.32,056.6
Other liabilities
456.5514.9473.7454.4417.9
Total liabilities
1,849.32,660.12,664.22,514.72,474.5
Equity
7,933.56,637.16,032.95,682.14,029.0
Total liabilities and equity
9,782.89,297.28,697.18,196.86,503.5

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
30
1.Gearing defined as nominal value of debt plus derivative liabilities divided by nominal value of debt plus derivative liabilities plus the
book value of equity
2.Interest coverage defined as reported NPAT plus taxation, interest expense, revaluations and derivative changes (broadly EBIT)
divided by interest expense. Waivers for any interest coverage and gearing covenant breaches until 31 December 2021
(inclusive).Moving to an EBITDA interest coverage covenant after that (2.0x in calendar 2022, 2.5x in 2023, 3.0x thereafter)
3.S&P A-rating threshold. Metrics as per S&P report on Auckland Airport dated October 2021
4.2021 includes one off close out costs for interest rate swaps, USPP notes and associatedcross currency swaps of$23.5m.Excluding
these costs the weighted average interest cost was 4.16%
Credit metrics and key lending covenants
For the year ended 30 June
Covenant20212020
Gearing
1
≤ 60%15.3%23.5%
Interest coverage
2
≥ 1.5x0.8x2.6x
Debt to enterprise value11.6%19.4%
Net debt to enterprise value10.9%12.5%
Funds from operations interest cover
3
2.5x1.9x3.4x
Funds from operations to net debt
3
11.0%5.8%18.6%
Weighted average interest cost
4
5.4%3.9%
Average term to maturity (years)2.94.6
Percentage of fixed borrowings80.4%65.4%
•Waivers for any interest coverage and gearing
covenant breaches until 31 December 2021
(inclusive)
•Thereafter moving to an EBITDA interest
coverage covenant (2.0x in calendar 2022, 2.5x
in 2023, 3.0x thereafter)
‒based on the 90% vaccination rates being
achieved, we expect domestic air travel
through Auckland to open up prior to Xmas
‒we expect international travel to gradually
rebuild through calendar 2022
‒in the absence of this recovery, or similar,
further accommodation from the company’s
banking group will be required
•A-credit rating from S&P reaffirmed on a stable
outlook, revised in Oct-21 noting “Proactive
capital management and financial policies will
continue to support the current rating”
•Auckland Airport remains committed to an A-
credit rating
Strong credit metrics with support from lenders

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
31
Liquidity to support the business
Capital management and liquidity
•Strong liquidity position with $831.7m of committed undrawn facilities and $79.5m in available cash available
at 30 June 2021
•Extended nearly $700m of bank facilities maturing over Jan-Apr 2022 by between 7-19 months
•Domestic bonds are a cornerstone source of funding for the airport and whilst no immediate use of funds,
issue will maintain liquidity in key capital pools with proceeds utilisedto fund infrastructure investment
Drawn debt maturity profile (post August refinancing)
26
66
193
62
55
100
0
200
225
150
284
0
100
200
300
400
500
600
Jun 22Jun 23Jun 24Jun 25Jun 26Jun 27Jun 28
$m
Commercial paperBank facilitiesFloating bondsFixed bondsAMTN
Weighted average
maturity

Questions

2021
November Investor Update
Company
Overview
Our continuing
journey
Financial
Information
Appendices
Reference material and further details
33
Reference material
Auckland Airport website: https://corporate.aucklandairport.co.nz/
Debt investor inquiries
Campbell De Morgan, Treasury Specialist
DDI: +64 27 478 3243
Campbell.demorgan@aucklandairport.co.nz

Appendices

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
Board of directors
35
Christine Spring
Director
Dr Patrick Strange
Chair
Mark Binns
Director
Liz Savage
Director
Julia Hoare
Director
Dean Hamilton
Director
Tania Simpson
Director

2021
Company
Overview
Our continuing
journey
Financial
Information
Appendices
November Investor Update
20212020
For the year ended 30 June($m)
Reported
profit
AdjustmentsUnderlying
profit
Reported
profit
AdjustmentsUnderlying
profit
EBITDAFI per Income Statement
1
171.5-171.5260.4-260.4
Investment property fair value increase
527.3(527.3)-168.6(168.6)-
Property, plant and equipment revaluation
(7.5)7.5-(45.9)45.9-
Fixed asset write-offs, impairments and termination costs
1
-2.52.5
-117.5117.5
Reversal of fixed asset impairments and termination costs
1
-(19.4)(19.4)
---
Derivative fair value movement
(0.5)0.5-(1.9)1.9-
Share of profit of associates and joint ventures
21.1(15.7)5.48.40.89.2
Impairment of investment in joint venture
---(7.7)-(7.7)
Depreciation
(124.7)-(124.7)(112.7)-(112.7)
Interest expense and otherfinance costs
(94.0)-(94.0)(71.8)-(71.8)
Taxation expense / (credit)
(29.0)45.916.9(3.5)(2.9)(6.4)
Profit after tax
464.2(506.0)(41.8)193.9(5.4)188.5
•We have made the following adjustments to show underlying profit after tax for the years ended 30 June 2021 and 2020:
–We have reversed out the impact of revaluations of investment property in 2021 and 2020. 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 revaluations of the land class of assets within property, plant and equipment in 2021 and
the land, infrastructure, and runways, taxiways and aprons classes of assets within property, plant and equipment in 2020. 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 capital expenditure write-offs, impairments and termination cost expenses and reversals for both the 2021 and 2020 financial years. In response to the
COVID outbreak, some capital expenditure projects were abandoned and fully written off and others were suspended and impaired. During the 2020 financial year, some of these abandoned
or suspended projects incurred contractor termination costs which were provisioned for in 2020 with the actual amounts finalisedduring the 2021 financial year resulting in some reversals of
2020 expenses. The abandonment or suspension of live capital expenditure projects is extremely rare and is the direct consequence of COVID. 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 intends to hold 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 both 2021 and 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 2021 and 2020 financial years.
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Appendix: Underlying profit reconciliation
1.2021 EBITDAFI includes a reversal of $19.4 million of previously expensed fixed asset write-offs, impairments and termination costs, partially reversing the full $117.5 million of costs that were
booked in 2020. 2021 EBITDAFI also includes $2.5 million of new fixed asset write-offs, impairments and termination costs.

November Investor Update
Glossary
COVIDCOVID-19
EBITDAEarnings before interest, taxation and depreciation
EBITDAFIEarnings before interest, taxation, depreciation, fair value adjustments and investments in associates
FMCAFinancial Markets Conduct Act 2013
JVJoint venture
NPATNet profit after tax
O&DOriginal and destination
PAXPassenger
S&PS&P Global Ratings Australia Pty Limited
TSRTotal shareholder return
USPPUnited States Private Placement
WALTWeighted average lease term
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