GATWICK AIRPORT* RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2015

Transcription

1 GATWICK AIRPORT* RESULTS FOR THE PERIOD ENDED 30 SEPTEMBER 2015 * Consolidated results for Ivy Holdco Limited, the parent of Gatwick Airport Limited, representing the performance of the Gatwick Airport group of companies

2 OPERATIONAL AND FINANCIAL PERFORMANCE HIGHLIGHTS TRAFFIC GROWTH EBITDA GROWTH PROFIT FOR THE PERIOD CAPITAL EXPENDITURE SENIOR NET DEBT * SENIOR RAR * SENIOR ICR + 4.7% + 6.8% 94m 92m 1,648m 0.54x 3.49x Contracts and Commitments framework working well with airlines - accounting for over 80% of passengers Awaiting decision from Government in December 2015 about the next new runway in the South East Strong service and satisfaction levels Record passengers of 23.5m driven by significant growth in existing airlines resulting in rolling annual total over 40m Air Traffic Control transition commenced and on target for March 2016 Airline moves project commenced Winter Season 16/17 * All figures are for the six months 30 September 2015 except Senior Net Debt and Senior RAR which are shown as at 30 September

3 OUR AMBITION & STRATEGY, CONSISTENTLY APPLIED

4 HELP OUR AIRLINES GROW Increased by 5.6% year to date, and launched new routes to Friedrichshafen and Corsica. Have reached 17mppa on a rolling annual basis. Announced the 11 th long haul aircraft to be based at LGW from May 2016 flying to Costa Rica and Lima. Also announced a new daily service to New York from April Increased by 21.8% year to date and declared plans to grow long haul at Gatwick including Puerto Rico, announcing Boston as the first new route from May New airlines and routes, long & short-haul, business & leisure Confirmed that all 3 Gatwick services to Dubai will be operated with A380 aircraft from January Announced 6 destinations, 4 flights per day from May 2016: Vancouver, Calgary, Edmonton, Winnipeg, Toronto and St. John s. New routes launched in November 2015 to Costa Rica and January 2016 to Reykjavik. 90% capacity growth in the last 12 months to 49 weekly departures. Have announced a new route to Paris (CDG) from May Announced a new daily Toronto service from May

5 HIGH SERVICE LEVELS AND SATISFACTION Service Quality Scores Remain Strong On Time Departure Remains a Key Focus 100% 95% 90% 85% 80% 75% 70% 65% 60% 55% 50% % Measures Passed % Measures Failed Change of ownership 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Percentage of flights departing on time - 12 Month Moving Average Total By Month 95% 85% 75% 65% 55% 45% Change of ownership % on time 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Security Clearance Bounces Back Post New Technology Launch Arrivals Bags Significant Improvement 100% 95% 90% 85% North Terminal Average <5 min South Terminal Average <5 min Target 100% 99% 98% 97% 96% 95% Percentage of flights last bag delivered within 5mins 80% Change of ownership 94% 93% Change of ownership % of flights successfully served 75% 09/10 10/11 11/12 12/13 13/14 14/15 15/16 92% 09/10 10/11 11/12 12/13 13/14 14/15 15/16 * Service metrics are updated to October

6 HIGH SERVICE LEVELS AND SATISFACTION Significant Improvements Independently Recognised LGW Average Rankings Q LGW Average Rankings Q Source: The Airport Service Quality (ASQ) - an independent survey run under the auspices of Airports Council International (ACI) Sustained Passenger Ratings at Near 12/13 Record Levels Overall QSM 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Target 6

7 STRATEGIC CAPITAL INVESTMENT CONTINUES Key projects delivered during the period include: NT fast bag drop phase 1 Pier 5 phase 2 reconfiguration Capital Expenditure ( m) - 1.4bn Actively considering opportunities to accelerate capital investment (depending on traffic growth) Selection of key projects ongoing: Pier 1 redevelopment (+ 180m) HBS Standard 3 replacement ( 140m) North Terminal check-in phase 2, security, arrivals, and IDL (+ 100m), facilitating airline moves IDL capacity expansion in both terminals (+ 35m) Railway station transformation (+ 30m) North Terminal immigration (+ 9m) /15 15/16 16/17 17/18 18/19 19/20 20/21 7

8 STRONG TRAFFIC GROWTH THROUGH EFFICIENT ASSET UTILISATION 42m 40m Passengers Rolling Annual Total (millions) 6 MTHS ENDED 30 SEP MTHS ENDED 30 SEP m 36m Change of ownership Passengers (m) % Seats per ATM % 34m 32m 30m 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 Load factors 86.1% 87.2% +1.1% pts ATMs (k) % Passenger numbers up 4.7% a factor of larger, fuller planes and increased movements. 40m passengers on a moving annual total basis to date. Record breaking passenger numbers a decade ahead of forecasts prepared by DfT and Airports Commission. ACDM55 project enabled 55 runway movements an hour to be declared and delivered in Summer Expectations are that passengers numbers will reach 41 million by the end of the financial year. 8

9 TRAFFIC GROWTH IN A COMPETITIVE MARKET GATWICK HEATHROW STANSTED LUTON Last 12 months Last 12 months Last 12 months Last 12 months +5.7% +2.0% +15.7% +14.3% 22.6% 15.9% 5.3% 8.1% 7.4% 4.7% 1.7% 1.9% 1.6% 2.3% 4.5% 10.9% 10.8% 1.8% 11.9% 9.9% 6 mths to Mar 14 6 mths to Sep 14 6 mths to Mar 15 6 mths to Sep 15 Targeted business development efforts have resulted in increased volumes Market remains competitive with growth opportunities being distributed across rival airports 9

10 SOLID FINANCIAL PERFORMANCE FOR GATWICK AIRPORT* First reporting period following transition to IFRS m 6 MTHS ENDED 30 SEP 2014 Unaudited 6 MTHS ENDED 30 SEP 2015 Unaudited CHANGE Passengers (m) % Turnover % Operating costs (excl depreciation and exceptional items) (165.9) (170.8) 3.0% EBITDA (pre-exceptionals) % Depreciation (62.3) (61.1) (1.9)% Exceptional costs - (5.9) - EBIT % Capital expenditure % Net debt** 1, , % * Consolidated results for Ivy Holdco Limited, the parent of Gatwick Airport Limited, representing the performance of the Gatwick Airport group of companies ** Net debt is shown as at 30 September 2014 and

11 5.2% INCREASE IN TURNOVER REFLECTING TRAFFIC GROWTH Aeronautical revenues increased by 5.1%, due to 4.7% rise in departing passengers and an increase in the level of airport charges, offset by discounts and traffic mix changes. Turnover analysis TOTAL 391.6m +5.2% 411.8m Retail income up by 1.4%, but net income per passenger decreased 3.0% to 3.60 due to challenging trading in the Duty and tax-free category % Car parking income up by 7.4% and net income per passenger increased 11.9% to 1.60 due to improved yield management, valet capacity increases and cost savings % 85.5 Other income increased by 10.0% largely as a result of increased traffic related operational facilities income and revised pricing structure for passengers with reduced mobility % +10.0% H H1 Other income Car parking Retail Aeronautical 11

12 3.0% INCREASE IN OPERATING COSTS REDUCED COSTS PER PASSENGER Staff costs increase reflects 2 ½ year pay deal agreed to September 2017 Offset by reduced salary costs for new starters Increase in pension costs under IFRS Operating costs analysis * TOTAL 165.9m +3.0% 170.8m % 72.8 General & other expenses increase reflects various factors, including: Rebates of 2.1m payable to airlines for service standards Increase in passengers with reduced mobility and associated costs Utilities decrease reflects A change in membership requirements for the carbon credit scheme % -2.9% % H H1 Maintenance + IT Rent, rates & utilities General & other expenses Staff costs (net) Operating costs excluding depreciation and exceptional items 12

13 CASHFLOW POSITIVE AFTER CAPITAL INVESTMENT AND NET INTEREST m NET DEBT 1 APRIL 2015 TO 30 SEPTEMBER ,900 1, ,700 1, ,500 1,400 1,300 1, , ,200 1,100 Opening Capital investment Net interest Cash flow from operations Restricted payments Other Closing 13

14 CREDIT OVERVIEW DEBT MATURITY PROFILE REDUCES FINANCING RISK 1,550m Class A Bonds Maturities m Bank Facilities March 2019 TRANSITION TO TRANSFER RAB Transfer date 1 April 2014 Relevant Multiple 11.1 STRONG LIQUIDITY POSITION TO FUND ONGOING CAPITAL INVESTMENT PROGRAMME Annual cash flow from operations 290m for the year ended 31 March 2015 Undrawn bank commitments 225m as at 31 March 2015 Restricted payments proposed 100m during 2015/2016 ( 52m paid July 2015) FINANCIAL RATIO 12 Months ended 30 SEPTEMBER 2015 YEAR ENDING 31 MARCH 2016 YEAR ENDING 31 MARCH 2017 YEAR ENDING 31 MARCH 2018 Cash flow (per covenant) 272.8m 255.9m 269.1m 290.8m Total interest (net) 78.2m 85.3m 90.5m 96.3m Senior ICR ( trigger <1.50x) 3.49x 3.00x 2.97x 3.02x Senior Net Debt (per covenant) 1,648.3m 1,791.0m 1,901.5m 2,024.0m Transfer RAB 3,027.5m 3,266.1m 3,640.6m 4,023.9m Senior RAR (trigger >0.70x) 0.54x 0.55x 0.52x 0.50x Net Debt to EBITDA FFO to Net Debt 15.4% 13.0% 13.9% 14.9% 14

15 GATWICK S SECOND RUNWAY PROPOSAL Gatwick is the best solution, does not breach air quality legal limits - even with a second runway - requires no taxpayer funding and can be delivered quickly. A decision for Gatwick is a decision for a runway which can actually be delivered and built by

16 CONCLUSION Contracts and Commitments proposal adopted by the CAA tailored offerings to each airline, enhancing the customer experience with contracts in place with airlines which accounted for over 80% of passengers for the six months to 30 September 2015 with a CAA review due in November Robust financial performance in line with expectations, reflecting passenger growth, new retail and car parking products delivering increased income per passenger and careful cost management. Continued success in service quality measures. Traffic growth has continued through both incumbent and new airlines and routes allowing the airport to achieve record number of passengers. Growth is expected to continue throughout 2015/16. Investment programme continuing to deliver new, improved and innovative facilities. Pressing Government to back Gatwick s proposal for the next new runway in the South East - the only deliverable solution. Full details of today s announcement at: gatwickairport.com/investor 16

17 DISCLAIMER This material contains certain tables and other statistical analyses (the Statistical Information ) which have been prepared in reliance on publicly available information and may be subject to rounding. Numerous assumptions were used in preparing the Statistical Information, which may or may not be reflected herein. Actual events may differ from those assumed and changes to any assumptions may have a material impact on the position or results shown by the Statistical Information. As such, no assurance can be given as to the Statistical Information s accuracy, appropriateness or completeness in any particular context; nor as to whether the Statistical Information and/or the assumptions upon which it is based reflect present market conditions or future market performance. The Statistical Information should not be construed as either projections or predictions nor should any information herein be relied upon as legal, tax, financial or accounting advice. Gatwick Airport Limited ( GAL ) does not make any representation or warranty as to the accuracy or completeness of the Statistical Information. These materials contain statements that are not purely historical in nature, but are forward-looking statements. These include, among other things, projections, forecasts, estimates of income, yield and return, and future performance targets. These forward-looking statements are based upon certain assumptions, not all of which are stated. Future events are difficult to predict and are beyond GAL s control. Actual future events may differ from those assumed. All forward-looking statements are based on information available on the date hereof and neither GAL nor any of its affiliates or advisers assumes any duty to update any forward-looking statements. Accordingly, there can be no assurance that estimated returns or projections will be realised, that forward-looking statements will materialise or that actual returns or results will not be materially lower than those presented. This material should not be construed as an offer or solicitation to buy or sell any securities, or any interest in any securities, and nothing herein should be construed as a recommendation or advice to invest in any securities. This document has been sent to you in electronic form. You are reminded that documents transmitted via this medium may be altered or changed during the process of electronic transmission and consequently neither GAL nor any person who controls it (nor any director, officer, employee not agent of it or affiliate or adviser of such person) accepts any liability or responsibility whatsoever in respect of the difference between the document sent to you in electronic format and the hard copy version available to you upon request from GAL. Any reference to GAL will include any of its affiliated associated companies and their respective directors, representatives or employees and/or any persons connected with them. 17

18 QUESTIONS