Investor Presentation Results for the Year Ended 31 March 2016 July - PowerPoint PPT Presentation

Investor Presentation Results for the Year Ended 31 March 2016 July 2016

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Introduction Neil Thompson mpson Chief Financial Officer, MAG Ken O’Toole Divisional Chief Executive Officer, Manchester Airport 3

Contents  FY16 H Highlights lights  Passe seng nger r Growth h & Co Commerc rcial ial Developm pment nt  Trading ding Perfor orma manc nce  Capital al Invest stme ment nt  Financin ncing 4

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FY16 Highlights Anoth ther recor ord d year for MAG with th finan ancia cial l outperfo rform rmance ce against st budget t and continu inued d invest stment ment acros oss s the Group p to support ort long-te term rm growth th Continued strong growth carrying 52 million passengers with increase in load factors and new destinations. STN is the fastest growing major airport in the UK. BA launches scheduled flights. Awarded ‘Best London Airport’ 2016. MAN passenger numbers at an all-time high and more cargo processed than ever before. Expansion of capacity and routes. First direct route to Beijing outside of London. EBITDA ahead of 5-year plan and 12% up on prior year. STN £80m terminal transformation complete. Final outlets from Phase 3 specialist retail development opened. MAN TP underway - phased and modular to optimise value and manage risk. Planning permission granted in March. Chinese President’s visit highlights Manchester Airport’s position at the hub of the Northern Powerhouse project. Property Business – Deals agreed with Amazon and DHL; Rt Hon David Cameron unveils plans for China Cluster at Airport City. Well positioned for continued growth – aviation pipeline, spare runway capacity, focussed MAN & STN investment, MAG USA. 6 6

FY16 Financial Highlights The continuing success of MAG’s commercial and operational strategy is reflected in a 7% year on year increase in passenger senger numbe bers rs and a 12% incre reas ase in EBITD TDA EBITD TDA: £318m m (+12%) %) Group p Pax: 51.9 .9m m (+7%) %) Commercial strategy driving Strong EBITDA growth passenger growth ahead of plan MAN Pax: : 23.5 .5m m (+5%) %) Cash genera erate ted from operations ations: : £325m m (+5%) %) MAN passengers at all time high Excellent cash conversion STN Pax: 23.2 .2m m (+11%) %) Capital tal Inves estm tment ent: : £125m m (+11%) %) STN is the fastest growing Improving efficiency and airport in the UK supporting growth EMA A and BOH Pax: Flat at at Leverage: age: 2.8 .8x (-0.6 .6x) 5.2m m but EBITD TDA up by 5%. . Conservative financial leverage Source: MAHL FY16 Annual Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY16 Results see Appendix on Page 29 7 7

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Commercial Growth Strategy Yielding Results The success of MAG’s commercial strategy is reflected in a 7% year -on on-ye year ar incre reas ase in passenger sengers  MAN and STN pax growing strongly. FY16 6 Pass sseng ngers ers (millions) ons)  Benefiting from a commercial strategy Group that incentivises growth.  Increased frequencies, additional capacity, and new routes.  Record passenger numbers.  Around 70 airlines flying to c.200 MAN destinations  Demonstrates importance of MAN to UK aviation and wider capacity debate.  Fastest growing airport in the UK.  Named ‘Best London Airport’ 2016. STN  BA adds scheduled service; Thomas Cook, TUI launch new long-haul routes; Ryanair increases frequencies.  EMA and BOH delivering broadly stable passenger numbers over the last three EMA & BOH years.  DHL expansion planned at EMA - the UK’s largest pure freight hub. Source: MAHL FY16 Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY16 Results see Appendix on Page 29 9

Long- term Passenger Trends…Success of MAG’s Strategy The continued strong growth at MAN and STN illustrates the success of MAG’s commercial strategy and the extensive reach of the catch chment ment areas MAN...now N...now in fifth th year ar of sustaine ustained growt wth STN…strongest growth in the UK EMA…consistent performance BOH…broadly stable but small component of MAG total Source: Management Information 10

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 marke ket t share (20.3% 3% of UK marke ket t reflectin ting g +0.3% % increas ase) MAG AG has s 2 o of the e top 5 UK airports orts for pass sseng enger growth. owth. MAG AG STN N is the e faste test st growin owing g major or airport ort in the e London on syst stem em has s the fast stest est growin owing g airport ort in the London on mark arket et (STN) N) and MAN N is the fast stes est t growing wing outs tside e of the Lond ndon on syst stem em. Source: CAA – March 2016 11

A Growing and Diversified Route Network MAG continu inues s to diversify rsify its s routes and airline ine network ork and now serves ves 279 routes – more than any other UK airpor ort t group. p. Capacity acity is growing ing togeth ther r with introd oduction ction of some me exciting ting new routes announced ced for Summ mmer r 2016 Europe pe / North Afric ica North Americ ica   Addit dition ional MAN – New York New Ryanair ir and EasyJe yJet rout utes capacity with Thomas Cook in from STN/MAN in Summer Summer 2016 2016   New MAN link to Los Angeles Jet2 adding new routes from and Boston for Summer 2016 MAN and EMA   New rout ute from MAN to Flybe be adding services from MAN Tobago with Thomas Cook to Lyon and Luxembourg   New Thomson services from New BA summer weekend STN to Cancun and Orlando services from STN   Virgin gin to operate to San New Krakow service from BOH  Francisco and Boston from New Vueling ing services to 2017 from MAN Alicante, Rome and Tenerife from MAN Far East Middl dle East  Haina inan Airli lines launc unched d a 4 x x  Continuing to add capacity – weekly kly service to Beijing from now over 50 direct links ks a week k MAN in June 2016 from MAN   Thomson set to grow w its MAN New Shaheen Air services from long haul network with services MAN to Islamabad - 4 times per to Phuket, Mauritius and Goa week  Turkis kish continue inues the 3 x x dail ily y service into Summer 2016 12 Source: Management Information

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FY16 Trading Performance Group p EBITD TDA up by £34 mill llio ion (12%) ) from m £284mill 4millio ion to £318 mill llio ion  Continuing growth in pax at STN and MAN drives Group oup Incom ome e Statem tement nt strong aeronautical revenues. Aeronautic ical al revenue  Aeronautical yields are slightly lower due to strong Group Group Variance Variance £m £m pax increases in non-peak periods. FY16 FY15 (£'m) (%)  Pax growth drives retail revenues  7%. Aeronautical 387.4 378.8 +8.6 +2.3%  Retail yield stable despite challenging conditions, Retail Retail 143.8 134.3 +9.5 +7.1% particularly duty free.  Benefit of investment seen at STN and EMA Car Parking 137.6 122.4 +15.2 +12.4% Property 47.5 46.4 +1.1 +2.4%  Focus on innovation, providing more customer choice and maximising utilisation. Other 62.5 56.5 +6.0 +10.6% Car Parking  Growth of 12%. Strong growth in pre-book coupled Revenue 778.8 738.4 +40.4 +5.5% with additional capacity, roll out of M&G.  Investment in security, customer service, and Employee costs (174.2) (165.9) (8.3) (5.0%) marketing to support growth and new routes. Operatin ing Non-employee costs (297.5) (288.9) (8.6) (3.0%)  Tight control of costs but further investment in staff Costs to support growing pax volumes. Costs per pax Operating Costs (471.7) (454.8) (16.9) (3.7%) down by £0.29 (3%).  Property strategy to realise best value form our Property development 10.6 - +10.6 n/a estate results in five completed deals. Property develo lopment  Occupiers seek benefits of locating close to global EBITDA 317.7 283.6 +34.1 +12.0% connectivity. Source: MAHL FY16 Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY16 Results see Appendix on Page 29 14

FY16 EBITDA Robust st trading ing perform rmance ce acros oss s the portfolio folio of assets ts with th the benefits fits of MAG ownersh rship ip of STN contin tinuing ing to stron ongly gly enhance ce the bottom om line EBIT ITDA DA (£ million) on) Source: MAHL FY16 Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY16 Results see Appendix on Page 29 15

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