AIA – 2022 Annual Meeting Chair & Chief Executive Addresses

Market Release | 20 October 2022

2022 Annual Meeting: Chair and Chief
Executive addresses
Patrick Strange, Chair
Tēnā koutou, tēnā koutou, tēnā tatou katoa.
Good morning. It’s great to be here meeting in person for the first time since the start of
the pandemic, and a very warm welcome also to the people joining us on the live
broadcast today. We would love to hold these meetings at the Airport, but that was a
stretch too far this year. We are working on it!
With us today are my fellow directors of Auckland Airport: Julia Hoare, Liz Savage,
Tania Simpson, Christine Spring, Mark Binns, Dean Hamilton and Mark Cairns. Mark,
Christine and Liz are standing for election or re-election and will address the meeting a
little later today.
We will also be hearing from Carrie Hurihanganui, who is attending her first Auckland
Airport annual meeting today as our new Chief Executive. Chief Financial Officer Phil
Neutze, other executives, and our auditors from Deloitte are also here with us today.
When we wrote to shareholders a couple of months ago in our annual report, Auckland
Airport’s recovery was ramping up. I’m pleased to say that since then planes and
travellers have continued to return. The place is starting to buzz again.
There remains much hard work still to be done, but aviation is on the path to recovery
now. It is important to acknowledge the outstanding efforts of our team and the wider
aviation workforce, especially those who have worked through the challenges of the
past two and a half years. It’s not been easy, but they have continued to serve our

customers, support airport partners and keep New Zealand safe and connected. I know
my fellow Board directors join me in offering our sincere thanks to you all.
Before I discuss financial results for the 2022 year and the outlook for the year ahead, I
wanted to set the scene for you.
Today we reflect on an extraordinary year, marked by lockdowns and then the
beginnings of revival with the gradual easing of border and travel restrictions. Despite
the volatility the team got on with the job of running our country’s largest airport and
supporting New Zealand’s recovery.
We built roads; converted carparks into a vaccination centre; restarted construction on
a new hotel; and kicked off two new major development projects. We created new
aspirations to lead the transition to net zero and continued to remind international
airlines why New Zealand is such a great place to fly to. Then, at long last, we
celebrated alongside travellers in the international arrivals area as the border reopened
and they reunited with family and friends.
As I said, it’s been an extraordinary year.
As we look ahead, we must not forget that New Zealand is in a competition with other
countries to attract back airlines and visitors to New Zealand. We are a long-haul
destination, and while we have much to offer visitors, the reality is that we’ll have to
work hard to get their attention as they have many destinations to choose from.
Our performance
As you may have seen this morning, we have updated our guidance to the market for
underlying profit after tax for the 2023 financial year. Carrie will provide more detail on
this shortly.
Now, I will run through key performance numbers for the 2022 financial year, which
reflect a year of two halves. Travel restrictions and the Auckland community lockdown
impacted the first six months, followed by the gradual restart of international travel
during the second half of the financial year.
• Auckland Airport’s revenue was up 7% to $300.3 million off the very low base of
2021

• Total passenger numbers decreased to 5.6 million, down 13%: This compares to
21 million passengers in 2019, the last full year before the pandemic struck
• Operating EBITDAFI was down 16% to $144.5 million
• Reported profit after tax was down 59% to $191.6 million
• However, this included one-off revaluations and, removing these, we recorded a
net underlying loss after tax of $11.6 million
• Earnings per share was down 59% to 13.0 cents
• Net underlying loss per share was 0.8 cents
• Reflecting these results and our agreements with our lenders, no dividend was
paid for 2022.
Since early 2020 we have been guided by a three-stage plan to chart a course through
the pandemic – we called these stages; respond, recover and accelerate.
We are now well into the recovery phase, increasingly apparent as our national carrier
and global airlines rebuild their connections and schedules, and as families and
businesses, separated by Covid-19, are able to reconnect in person once again.
In April 2022, our border re-opened to visitors from Australia, followed by visitors from
visa-waiver countries. As a result, international passenger numbers including transits
increased 123% to 1.3 million compared to the previous year.
While the total number of domestic passengers fell by 27% to 4.3 million year-on-year,
this reduction does not reflect the way domestic travel surged back following
Auckland’s lockdown.
The revival of passenger numbers is clearer every day: However, the prolonged
downturn had a heavy impact on our broader airport community, particularly those
reliant on visitors to the international terminal.
In the 2022 financial year we extended a further $178 million in rent reductions and
abatements to retail and commercial tenants, and $9 million in aeronautical rental and
aircraft parking relief. This reflects our partnership-driven approach throughout the
crisis. Over the past two years we have provided a total of $388 million to our partners
in the airport community.
In January this year we also introduced a price freeze in our aeronautical charges
during the 2023 financial year to support our airline partners. We are beginning to

consult with airlines regarding Price Setting Event 4 to determine prices for the 2024-
2027 financial years.
A major bright spot through Covid has been our investment property business, which
continued to perform strongly throughout the 2022 financial year, with rent roll up 9%
year-on-year to $127.5 million. Overall, our investment portfolio valuation was boosted
by 10% to $2.9 billion. We continue to invest in this part of our business and have made
strong progress on the planned development of Mānawa Bay, a new premium fashion
outlet centre.
Looking to the future
With the recovery now well underway, we are focused on the future.
The Board, jointly with Carrie and her team, are working on a strategy refresh to ensure
a strong and sustainable Auckland Airport for the future and we are looking forward to
sharing this with you in the new year.
Sustainability is a key pillar in our refreshed strategy. We have set an ambitious target
to become net carbon zero for scope 1 and 2 emissions by 2030. This means we will
need to achieve a 90% reduction in our carbon emissions against our 2019 baseline. It
will not be easy, but there are technological pathways to achieve this. Our target
excludes carbon emissions from aircraft flying to or from Auckland, which we do not
control, but we recognise the role we must play in helping our airlines to adopt and
implement new technology to lower these.
As Carrie will outline in more detail, we are currently consulting with our airline
customers on a major lift in investment in airport infrastructure to transform the airport
for the rest of this century and beyond.
Our almost 60-year-old domestic terminal and its associated infrastructure is at
capacity and is nearing end of life, and Covid has deferred advancement of its
replacement later than we would like. We continue to progress our priority project – the
development of a combined domestic and international jet terminal, consistent with the
master plan agreed for the airport. Associated with this is new infrastructure for regional
passengers, a new baggage system, a new transport hub, taxiways, and terminal
roading.

Overall, the capital programme we are consulting on would amount to the largest
infrastructure investment programme in New Zealand's key airport gateway since it was
opened sixty years ago. It is challenging, and Covid did not help. We did manage to
use the time to complete key airside works, and a major upgrade to our roading, but
Covid not only means we have had to rebuild our teams to tackle the build, but has also
left us in a challenging and stretched construction environment.
New leadership
In Feb ruary 2022, we welcomed Carrie as our new Chief Executive. Carrie has brought
an outstanding level of energy, an absolute passion to deliver a quality experience for
our customers and a deep understanding of aviation and airlines. This will serve our
airport strongly as we re-position into the future.
We also welcomed Mark Cairns, former chief executive of the Port of Tauranga to the
Board on 1 June. Mark brings experience and expertise that will be invaluable. As a
new, board-appointed director, he is standing for election today.
Aviation’s recovery
We are working very hard to attract international airlines to return to Auckland, with
some success, but we still have a way to go. Basically, the international aviation
industry is still rebuilding, and there is a lot more passenger demand than there is
operating aircraft to fly them. New Zealand is attractive - but so are other countries. To
rebuild the visitor market which is so vital to this country - pre-Covid it was our biggest
earner and employer - we have to step up as a nation and encourage visitors to come
here. Currently, other nations - like our friends across the Tasman - are investing
heavily in encouraging airlines and international routes to return to their shores. I am
hopeful that our country will do more to rebuild visitation in the months ahead. The
decisions we make now will have a major bearing on the speed of our country’s
recovery and the future shape of our tourism industry.
Concluding remarks
At the end of another challenging year, I would like thank you, our investors, for your
continued support.

And to our customers, we thank you for your patience and support as we have ramped
up activities alongside airlines and our aviation partners to re-open and revive Auckland
Airport.
I’ll now hand over to Carrie.

Chief Executive Carrie Hurihanganui
Thank you Patrick,
Kia ora tātou, it’s lovely to be here in person for my first Annual Meeting for Auckland
International Airport since joining the team in February this year.
On a personal note, I would like to thank former chief executive Adrian Littlewood for
his support during the handover and, also, the Board and wider team at Auckland
Airport as well as our aviation partners for the warm welcome and support I’ve enjoyed
since joining.
In a m oment I will discuss the company’s position, but first it feels only right that I briefly
introduce myself as this is my first annual meeting.
I arrived at Auckland Airport more than 30 years ago on holiday from America and, was
fortunate to meet my now husband, and decided to stay on and study here, eventually
funding my way through my degree by working as cabin crew for Air New Zealand. That
was the start of my 23+ year career in aviation, for which I developed a great passion.
Over the years I was able to work my way up through the business; and in 2018 I was
proud to become Air New Zealand’s chief operating officer.
To now serve as Auckland Airport’s chief executive is a great privilege. It’s an incredibly
exciting and challenging time to join the organisation and I approach the role with a
great sense of purpose and determination to grow the potential of this business for the
benefit of customers, community, environment and for our country’s prosperity.
Despite our full-year passenger numbers being down by 13% to 5.6 million in total
versus the 2021 financial year, we are confident the numbers are heading in the right
direction.

By the end of October we will have 22 airlines now operating to 38 destinations - well
up from just 12 airlines and 21 destinations during the worst of the pandemic. This
month we are celebrating the return of two airline powerhouses, United Airlines and
American Airlines, helping to make Auckland the most connected Australasian city to
North America.
Since joining Auckland Airport I have taken a strong interest in our approach to
sustainability and how we can further shift the dial.
I have also been working with the team to understand the quality of the end-to-end
experience we’re providing to our customers. Our aspiration is to deliver experiences
that are easy, seamless and intuitive. I’m excited about the restart of our infrastructure
programme as the platform for the future modern travel experience we want to deliver.
As Patrick has mentioned we are currently underway with two major, multi-year capital
projects and we are consulting with our major airline customers on the next stages of
development for our combined domestic and international jet terminal. Together these
projects will transform Auckland Airport to deliver the customer experience we
collectively aspire to, and will assist us to support our sustainability goals.
As we fold these strands of customer experience, sustainability and transformation into
the strategy work underway with the Board, the overarching theme is about building the
best possible future for our organisation and the communities we serve.
Major projects
I’d like to provide some more detail on our capital projects for transformation.
During the 2022 financial year, we continued to focus on transport improvements, core
infrastructure upgrades and enabling works to support future terminal and new property
developments – with over $250 million in capital expenditure.
We invested $80 million in progressing the combined domestic and international jet
terminal, including design and enabling works for a new dedicated domestic jet pier,
customer dwell and retail space and smarter baggage services.
The exact timing of the combined jet terminal project will be guided by the conclusion of
airline consultation and will be a 5-year build from the point of construction
commencing. It will be a once in a generation investment to create a terminal that

appropriately represents its role as the gateway to New Zealand and is as seamless
and efficient as the best airports in the world - with fast, easy connections between
domestic and international for our customers. While the build continues, we are focused
on working with our government partners to ensure continued growth in public transport
options, making it easy for travellers and workers to access the airport.
In March 2022 we announced the development of Mānawa Bay. This is a $200 million-
plus, 100 store premium outlet shopping destination in the north-eastern edge of the
airport precinct. Earthworks is now complete on the 150,000m2 site and we are
experiencing strong interest with leasing now in progress for what will be New
Zealand’s first ever premium purpose-built outlet centre.
In May this year, we outlined the start of another key project – a $300 million world
class Transport Hub. Much more than just a carpark building, it incorporates 400
metres of public curb-side pickup and drop off and 150 spaces for electric vehicle
charging, with the team targeting a US accredited Gold Parksmart rating; which is a
measure of facilities that use innovative sustainable practices.
The Transport Hub is about putting the customer at the centre of our thinking and will
be a great leap forward to smooth out the experience for travellers arriving for and
returning from their flights. Just as importantly, we have future-proofed the design so
that it paves the way for future mass rapid transit to deliver customers into the heart of
our precinct.
When these projects are taken alongside major upgrades to our 22km local roading
network completed earlier this year, we are making significant progress on an airport fit
for the future for our travellers, visitors and employees in the airport community.
People and community
I have emphasised the focus I want to place on customers and continuing
transformation of our airport to support the customer journey.
To help drive this forward we announced two changes to the leadership team in June.
Scott Tasker was appointed to the role of General Manager Customer and Aero
Commercial. This expands on his existing roles in aeronautical commercial and airline
relationships. Scott will lead our strategy to deliver for our customers across the airport
precinct.

I was also pleased to appoint Mary-Liz Tuck to the position of General Manager
Strategic Infrastructure Planning and Transformation. In this role, Mary-Liz will co-
ordinate our approach to sustainability, infrastructure and master planning, capital
investment and aeronautical forecasting.
In November we are also looking forward to welcoming Melanie Dooney to the
leadership team as General Manager Corporate Services. Mel is joining us from her
role as Chief People Officer for Te Whatu Ora, Auckland District, where she led her
team through the challenges of the pandemic.
The airport community was pulled in many directions over the 2022 financial year from
hard lockdowns to a series of border reopenings. I want to thank our 460-strong
capable and committed team for their dedication to serve today’s travellers, but equally
their contribution to the transformational projects we have on the go.
Amidst all the calls on peoples’ attention over the past year, the team has remained
focused on health, safety and wellbeing. A priority is creating a great place for our
people to work – one that makes a positive contribution to their wellbeing and where
employees can bring their whole selves to work.
Our health and wellbeing focus also extended to our wider community. Our team
volunteered 350 hours of their time after we provided our long-term parking ‘Park &
Ride’ facility at no cost for use as a ‘Park and Vax’ facility. Dozens of our people
worked alongside health workers to keep the site flowing and safely managed. This
saw 155,000 vaccinations delivered between September 2021 and January 2022.
Along with the redeployment of our Park & Ride buses as mobile health clinics, we’re
proud of our efforts to make vaccines more accessible to our community.
In reflecting on community, it is also acknowledged that the location of Auckland Airport
is of historical and cultural significance to Māori.
In keeping with this we have worked alongside local iwi on the design and delivery of
our projects across the precinct. This includes the Transport Hub, terminal
development, and Mānawa Bay.
Creating pathways into sustainable employment requires patience and understanding.
Our partnership with the NZ Youth Mentoring Network and Ara Education Charitable
Trust provided an eight-week programme for 16 mentor/student pairs and provided

coaching and exposure to diverse work opportunities with overwhelmingly positive
feedback. In a similar vein we continued to support the Life Education Trust Counties
Manukau and ASB Polyfest.
Our Auckland Airport Community Trust granted more than $368,000 to a range of
community groups in a year when calls for health, wellbeing and social support were
greater than ever.
Sustainability
We are developing new aspirations for sustainability at Auckland Airport.
As Patrick has mentioned, this includes targeting a 90% reduction in scope 1 and 2
emissions from a 2019 baseline, to achieve Net Zero carbon emissions by 2030.
We are currently operating significantly below our 2019 financial year baseline,
however this has more to do with disrupted operations than substantive change at this
point.
We have signed up to the latest Climate Leaders Coalition Statement of Ambition and
we are very conscious that we will not achieve these ambitious targets by working the
same way we always have.
In line with this, our terminal air conditioning system is the largest in New Zealand and
we’re phasing out the use of natural gas as a source of space and water heating and
cooling. The first air-source heat pump to replace our natural gas boilers will be
installed next year as proof of concept towards our gas-free future. Auckland Airport will
also use electricity generated from a mix of on-site and off-site renewable energy
sources.
We are transitioning our transport fleet to electric vehicles, or hybrids where feasible.
Fire trucks, marine rescue vehicles and hovercraft, will remain diesel-powered due to
the lack of alternatives currently, however we will continue to monitor opportunities in
this space.
Wherever possible we are striving to help our customers, Airways and airlines to
reduce their emissions. These ‘scope 3’ emissions are beyond our absolute control –
however we can and will invest to support our stakeholders in their efforts to reduce

emiss ions. We have also set specific targets to reduce waste to landfill and potable
water use by 20%.
I am conscious that some of the examples I have provided are anecdotal. For more
detail, please refer to our website for our full Climate Change Disclosure Report. We
prepared this in line with the recommendations of the Taskforce on Climate-related
Financial Disclosures.
Outlook
As you may have seen in our market announcement this morning, Auckland Airport has
revised our guidance and outlook.
Guidance of underlying profit after tax of between $100 and $130 million is now being
provided for the 2023 financial year, an uplift on guidance we provided in August of
between $50 and $100 million.
This is as a result of aviation’s strong performance both domestically and
internationally. We have experienced a stronger than expected rebound in the aviation
market, particularly in North and South American, South Pacific and Trans-Tasman
routes.
Looking ahead, there is more certainty about the performance of the market, over the
coming months, with high aircraft load factors and continued strength in forward
international seat capacity indicating a stronger than expected summer peak.
Overall we are increasingly confident that aviation is returning to normal, with the
structure of the market becoming more balanced across inbound and outbound travel,
and ‘business’, ‘friends and family’ and ‘leisure’ travel categories.
For the full 2023 financial year we are now anticipating international passenger
numbers will be between 60 and 70% of pre-covid levels and domestic passenger
numbers between 85 and 90%.
We have also adjusted our outlook which is now in line with International Air Travel
Association’s (IATA) view that the global industry will recover to pre-pandemic levels by
the end of the 2024 calendar year.
Our capital expenditure guidance for the 2023 financial year remains unchanged at
between $600 and $700 million, reflecting a number of roading, airfield, and investment

property projects alongside progressing with the continued design and enabling works
for the combined domestic and international jet terminal.
The capital investment plan is considered within our consultation on aeronautical prices
under Price Setting Event 4 mentioned earlier, and could be subject to change as we
consult with airlines.
Finally, I would like to thank all our partners from government border agencies to
airlines, service providers to infrastructure and construction partners for their support,
communication and adaptability during what has been a period of rapid change. We
couldn’t do it without you.
Thank you.
ENDS
For further information, please contact:

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


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