Classification: Public Heathrow (SP) Limited Results for the 6 months ended 30 June 2019 23 July 2019
Classification: Public Contents Page 1. H1 2019 Highlights 3 2. Business Highlights 5 3. Financial Review 15 4. Strategic Update 24 5. Appendices 27
Classification: Public H1 2019 Highlights
Classification: Public A strong start to 2019 Operational highlights • Record 38.8 million passengers, up 1.8% 1 Best airport in Western Europe for 5 th year running • • Connecting Heathrow with new domestic and international routes Financial performance • Adjusted EBITDA (pre IFRS16) up 3.9% to £881 million 2 • Investing for future growth • Strong global appetite to invest in Heathrow with £1.4 billion raised Strategic priorities • Greater resilience, better service, lower cost 3 • Net zero carbon aviation • Delivering a sustainable, affordable and financeable expanded Heathrow Page 4 See page 30 for notes, sources and defined terms Visit us: www.heathrow.com/company/investor-centre
Classification: Public Business Highlights
Classification: Public 38.8 million passengers, 32 consecutive months of record growth Passenger traffic by market – 2019 vs. 2018 Passenger traffic at European hubs Year on year growth in traffic for 12 months to 30 June 2019 UK +7.6% 2.3m (1.2%) Europe North America 15.9m +5.9% 8.9m +0.3% M. East +5.6% 3.6m +4.8% (1.5%) Africa 1.8m Asia Pacific +9.5% +2.3% 5.6m +1.8% +1.1% Latin America 0.7m +3.7% Schiphol Heathrow Frankfurt Charles de Madrid Gaulle Runways 6 2 4 4 4 38.8 million passengers Annual +1.8% 74.6 59.7 71.5 80.8 70.5 passengers (m) H1 2018 H1 2019 H1 2018 H1 2019 Passengers ATM 232,203 233,956 Long-haul traffic growth (%) 2.5% 3.3% Short-haul traffic growth (%) 2.6% Seats per ATM 213.3 213.0 0.1% Load factors (%) 76.9 77.8 China Southern: Zhengzhou New routes Cargo tonnage (‘000) 841 806 British Airways: Marrakesh, Seychelles, Durban and Pittsburgh Flybe: Newquay, Guernsey, Isle of Man Virgin Atlantic: Las Vegas, Dallas Page 6 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Maintaining strong service standards and robust operations Quarterly passenger satisfaction Passenger satisfaction European ranking Q2 2009 – Q2 2019 Q2 2019 4.30 4.18 4.20 ASQ score (out of 5) 4.10 ASQ score (out of 5) 4.10 3.90 3.78 4.00 3.70 3.90 3.50 3.80 3.30 3.70 Q2-09 Q4-09 Q2-10 Q4-10 Q2-11 Q4-11 Q2-12 Q4-12 Q2-13 Q4-13 Q2-14 Q4-14 Q2-15 Q4-15 Q2-16 Q4-16 Q2-17 Q4-17 Q2-18 Q4-18 Q2-19 LHR 2009 LHR Q2 2019 European competitors European comparators Heathrow European top quartile European average Departures Baggage performance within 15 minutes of schedule connection rate per 1,000 passengers 100% 90% 99.1% 83% 80% 98.8% 98.8% 78% 77% 99% 80% 99% 70% 98.1% 60% 98% 98% 50% 2009 2018 H1 2018 H1 2019 2009 2018 H1 2018 H1 2019 Terminal 5 - World’s Best Airport Terminal Best Airport in Western Europe World’s Best Airport Shopping Page 7 See page 30 for notes, sources and defined terms Visit us: www.heathrow.com/company/investor-centre
Classification: Public Progressing on all Heathrow 2.0 flagship goals A GREAT A GREAT A THRIVING A WORLD PLACE PLACE SUSTAINABLE WORTH TO WORK TO LIVE ECONOMY TRAVELLING Page 8 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Moving to net zero carbon for aviation Since 2017 Heathrow has been fully running on renewable electricity. Heathrow has already reduced its on-airport carbon emissions by 48% since 1990, Our targets, as set out in Heathrow 2.0: despite passenger numbers ➢ Carbon neutral airport operations from 2020 Emissions level from aircraft prior to expansion rising from 43 million per ➢ Zero carbon airport operations by 2050 year to over 80 million. ➢ Carbon neutral growth from the new runway Page 9 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Heathrow expansion on track Completed To come CAA Airspace and Heathrow • CAA Heathrow consultation Future Operations consultation consultations and final report consultation 1 launched Government and policy to Secretary of updates CAA State on airline engagement 2019 2017 2018 2020 2021 • Government Heathrow Government Heathrow NPS Heathrow submits Heathrow consultation on draft statutory decision to ‘designated’ Initial Development Innovation National Policy consultation grant DCO Business by Consent Order Statement (‘NPS’) Partners Plan (‘IBP’) Government (DCO) application short list • NPS consultation 2 • Parliamentary scrutiny Page 10 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Expansion – Masterplan overview Draft preferred masterplan proposes a new full length runway to the north-west. Benefits include: • 10,000 apprenticeships by 2030 • Up to 40,000 new local jobs during construction and operation of the expanded airport • Supply chain opportunities spread across the UK, including 4 Logistics Hubs • At least 260,000 additional ATMs • Up to 40 new long haul trading routes • 2x current cargo capacity for British exporters • Economic growth and benefits for UK PLC Page 11 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Sustainable Expansion • Construction plans to mitigate environmental impact such as pioneering offsite manufacturing. • Capacity to be released according to a number of legally binding, strict environmental limits. • Limits based around: • Noise and Air Quality; • Surface Access, and • Carbon. • Independent Scrutiny Panel to validate monitoring and ensure compliance. • Increasing to a 6.5 hour ban on scheduled night flights and halving the number of “late runners”. AIR NOISE AIR QUALITY SURFACE ACCESS CARBON • Carbon neutral airport • 25% reduction in staff • Heathrow Ultra Low • Fewer people impacted operations by 2020. car trips by 2030 and Emissions Zone. with noise than in 2013. 50% by 2040. • Zero carbon airport • Expanded infrastructure • Noise Insulation Policy for • At least 50% of operations by 2050. for charging electric and eligible residents. journeys made to the hybrid vehicles • Carbon neutral growth airport by public transport by 2030 and at from the new runway. • Surface Access least 55% by 2040. Proposals Page 12 implementation.
Classification: Public Affordable expansion 2035 (to Early growth (pre- 2026 (Opening 2030 (to c.2050 (to 142 mppa) 2026) year) 115mppa) 130mppa) • Terminals and • Existing 480,000 • Additional • Further terminal satellites complete. • 3rd runway facilities and ATM cap lifted by terminal facilities • Terminal 3 replaced opens additional 25,000 & satellite satellite by transformed • M25 realigned once the DCO is buildings buildings Central Terminal granted • Diversion of • Reconfigured • New parking Area. local roads, • Movement cargo area areas • Additional taxiways rivers and increase • Some hotels • Further work on • Further airport surface water consistent with completed hotels and other treatment related environmental airport related development policies of the development Airports NPS Benefits of our proposal include: • Promotes competition between airlines and increasing choice of routes and reducing ticket prices; • Reduces operational impacts on airport users and ensures the best customer experience; • Cost-efficient way of delivering large scale infrastructure; and • New infrastructure can be brought into use as and when needed, allowing passenger growth to be accommodated while keeping the charges close to 2016 levels in real terms Page 13 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Financeable Expansion We remain committed to maintaining our existing investment grade credit ratings throughout expansion The key steps to achieving a financeable masterplan are: • Finalise masterplan for summer 2020 • Engage with the CAA to confirm the regulatory framework • Engage with rating agencies to deliver on our investment grade credit rating commitments Expansion will be entirely privately funded using our existing debt platform. Our financing strategy remains focused on: LIQUIDITY DIVERSIFICATION DURATION Page 14 Visit us: www.heathrow.com/company/investor-centre
Classification: Public Financial Review
Classification: Public Financial highlights H1 H1 Versus (£ million) 2018 2019 H1 2018 % 1,405 Revenue 1,461 4.0 557 Operating costs* 580 4.1 848 881 Adjusted EBITDA* 3.9 Capital expenditure 370 412 11.4 Dec Jun Change from 2018 2019 31 Dec 18 % Consolidated nominal net debt 12,407 Heathrow (SP) 12,520 0.9 13,980 Heathrow Finance 14,145 1.2 16,200 16,420 RAB 1.4 * Excluding impact of IFRS16 to ease comparability (£26million of operating costs reclassified to below EBITDA in 2019) Page 16 See page 30 for notes, sources and defined terms Visit us: www.heathrow.com/company/investor-centre
Recommend
More recommend
