2 introduction
play

2 Introduction Neil Thompson mpson Chief Financial Officer, MAG - PowerPoint PPT Presentation

2 Introduction Neil Thompson mpson Chief Financial Officer, MAG Andr drew ew Cowan an Chief Executive Officer, Manchester Airport 3 Contents INVESTING Invest stment t in enhancing cing our capab abil ilitie ities FY19 H is


  1. 2

  2. Introduction Neil Thompson mpson Chief Financial Officer, MAG Andr drew ew Cowan an Chief Executive Officer, Manchester Airport 3

  3. Contents INVESTING Invest stment t in enhancing cing our capab abil ilitie ities  FY19 H is paying ing off and underpi pinnin ing g our Highli lights ghts £1.5bn transf sforma ormation tion program ammes mes  Passe seng nger er Growth h & Co Commerc rcial ial Developm pmen ent TRANSFORMING  Trading ding Perfor orma manc nce  Capital al Investme stment nt Contin tinuou ous s improveme rovement t and  Financing ncing invest stment t in our people le, process sses s and syst stems s across ss all our operatio ations, becomin oming g more digita ital l CONNECTING Serving ving our custom tomer catch chments ments with th global al connection ctions, s, leisu sure re and busine iness ss, that attract act people le to our airpor orts ts 4

  4. 5

  5. FY19 Highlights Anoth ther good year for MAG with th stron ong trading ing and continu inued investment tment across ss the Group to support ort long-te term rm growth th and passeng senger r experie ience ce Continued strong growth carrying 61.8 million passengers (+4.9%). STN passenger numbers grew by 9% this year adding more 6 6 passengers than any other UK airport (+2.3m). MAN passenger numbers grew by 3%, after successful backfilling of 6 6 routes lost after the collapse of Monarch. EBITDA of £380m and 6% up on prior year. Strong conversion to cash at 109%. Routes continue to increase with our airports now serving 280+ destinations around the world. Air Corsica, Pobeda and Laudamotion all operating new services from MAG airports. Jet2 and EasyJet continuing to increase number of based aircraft. Capex of £591m including MAN TP investment programme delivers first phase of new infrastructure – Pier 1 and T2 Multi-storey car park – on schedule and only 18 months after work commences. Strong long-term funding platform - £350m listed bond issued and £350m of new shareholder funding provided. Leverage currently low at 3.2x MAG-O - our technology and e-commerce business continues to develop and drive improvements in airport experience and MAGs digital footprint. Well positioned for continued growth – aviation pipeline, spare runway capacity, focussed MAN & STN investment. Our airports contributed £7.8bn to the UK economy (+10%) and directly supported the education of 31,000 young people. 6

  6. 7

  7. Commercial Growth Strategy Yielding Results The success of MAG’s commercial strategy is reflected in a 5% year -on on-ye year ar incre reas ase in passenger sengers s spread ad acros oss s all our airpor orts ts  Pax growth outperforming UK market FY19 9 Pass sseng ngers ers (millions) ons) despite impact of Monarch and Ryanair.  Investment in facilities matched by equal Group focus on passenger experience.  Commercial strategy incentivises growth.  Record passenger numbers in 80 th year.  Best UK Airport for 4 th consecutive year MAN awarded by Travel Weekly.  Phase one of £1bn Transformation Programme complete.  Enabling works for new Arrivals Terminal underway. STN  Emirates launch daily service to Dubai.  Opening of Stansted Airport College.  Pax growth combined with an ever expanding cargo network EMA is well EMA placed to drive the “Midlands Engine”.  UPS double cargo operations at EMA with a new £114m development. Source: MAHL FY19 Annual Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY19 Annual Results see Appendix on Page 33 8

  8. Above-Market Growth & Rising Market Share A comm mmercial rcial strat ategy gy that t incentivis tivises s growth th is translat slating ing into o above-marke market performa ormance ce and rising ing market t share (21.0% 0% of UK market t reflectin ting g +0.4% % increas ase on prior r year market t share) MAG AG has s the fast stest est growin owing g UK airport ort in term rms of pass sseng enger er increases reases with th STN which h is out perform orming ng both h LGW and LHR R desp spite te air traffic control ntrol and pilot ot stri rikes. . MAN conti tinu nuing ng to grow w desp spite te timin ming impact act of Mon onarch arch backfill. STN 2.3 LCY 8.9% LHR 1.8 LTN 1.1 EDI 1.1 STN 8.8% LGW 0.7 MAN 0.7 LTN 8.6% BFS 0.6 BRS 0.5 LCY 0.4 MAN 2.5% LPL 0.1 LBA 0.0 LHR 2.3% EMA 0.0 ABZ -0.1 GLA -0.3 LGW 1.6% BHX -0.3 -1.00 -0.50 0.00 0.50 1.00 1.50 2.00 2.50 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Year-on on-year growth (pax 'm) m) Year-on on-year growth (%) Source: CAA – March 2019 9

  9. MAG G contin inues to diversif ify its routes tes and airli line ne network and now serves over 280 routes tes. . Capacity ity is growin ing togethe ther with th introductio tion n of new routes tes Europe • Jet2 increase to 12 based aircraft at STN, along with a host of new routes; frequency and capacity Africa ica North Americ ica Middl dle East t / Asia ia growth at MAN including Chania • (Crete) and Izmir • New Thomas Cook k service from • New Thomas Cook k service New Emirates service from • EMA to Hurghada started in easyJe Jet add 5 based aircraft at from MAN to Seattle STN commenced in Summer February ’18 MAN and 5 new routes including commenced in Summer ’18 ’18 • Barcelona, Bordeaux and Faro. • EasyJe Jet launched Hurghada • Virgin gin Atlan antic ic launch Los New El Al service from Tel New route to Paris CDG from STN services from STN in November Angeles services in Summer Aviv to MAN commenced in • ‘18 New airli lines to MAG – Wideroe, ‘19 Summer ’19 • • Laudamotion (Vienna) , Air New Ethiop iopia ian Airli lines service Qatar three times daily to Corsica, Pobeda (St Petersburg) from Manchester to Addis Ababa Doha from MAN and Montenegro Airlines operating from Winter ’18 new services from STN Source: Management Information 10

  10. 11

  11. FY19 EBITDA Robust st trading ing perform rmance ce acros oss s the Group. p. MAG EBITD TDA has incre reas ased d by £21m m (+5.9%) %) year on year, despi pite te the impact act of Monarch rch and air traffic fic control rol and pilot t strik ikes EBIT ITDA DA (£ million) on) Source: MAHL FY19 Annual Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY19 Annual Results see Appendix on Page 33 12

  12. FY19 Trading Performance Group p EBITD TDA up by £21 mill llio ion (6%) from m £359 mill llion ion to £380 mill llion ion – ahead d of plan and driven ven by stron ong g pax and yield ld growth th  Continuing growth in pax at MAN and STN drives Grou oup Incom ome Statem tement nt strong aeronautical revenues  7%. Aeronautic ical l revenue  Aeronautic ical al yield lds s increase sed 2% as airlines have Group Group Variance Variance £m £m increased capacity and introduced new destinations. FY19 FY18 (£'m) (%)  400,000+ sqft retail space with over 50 operators. Aeronautical 354.5 332.7 +21.8 +6.6%  Pax growth drives retail revenues  9%. Retail 198.1 181.6 +16.5 +9.1% Retail  Retail l yield ld increas ase of 4% despite challenging Car Parking 221.4 187.2 +34.2 +18.3% market conditions particularly in duty free. Property 46.2 44.4 +1.8 +4.1%  Market-leading analytics, e-commerce, marketing Other 69.2 72.2 (3.0) (4.2%) and trading expertise to deliver a tried and tested formula - continues to achieve results with all tastes Car Parking Revenue 889.4 818.1 +71.3 +8.7% and budgets catered for.  Growth of 18% and yield ld increas ase of 13% . Employee costs (249.1) (218.4) (30.7) (14.0%)  Strong focus on passenger experience. Cost growth Non-employee costs (262.3) (242.2) (20.1) (8.3%) to support increase in volumes and invest in Operatin ing Operating Costs (511.4) (460.6) (50.8) (11.0%) customer service, together with additional cost Costs directly related to the £34.2m income growth in car Property development 1.8 1.3 +0.5 +38.5% parking. Source: MAHL FY19 Annual Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY19 Annual Results see Appendix on Page 33 EBITDA 379.8 358.8 +21.0 +5.9% 13

  13. 14

Recommend


More recommend