Investor Presentation Results for the Year Ended 31 March 2017 July - PowerPoint PPT Presentation

Investor Presentation Results for the Year Ended 31 March 2017 July 2017

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

Contents  FY17 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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FY17 Highlights Anoth ther stron ong g year for MAG with strong g year r on year r growth wth, financial cial outperfo rforman rmance ce against st budget t and continu inued d invest stment t acros oss s the Group to suppor ort t long-te term rm growth th Continued strong growth carrying over 55 million passengers with an increase in load factors and new destinations. MAN passenger numbers at an all-time high and more cargo processed than ever before. MAN passenger growth of 11% - 2 nd fastest growing airport in the UK STN passenger numbers grew by 5% in the past year with the 6 6 airport now having 6.8m more passengers than in 2013. EBITDA ahead of 5-year plan and 8% up on prior year. A new STN arrivals facility is in the planning stages as part of infrastructure developments to enhance passenger experience and capacity for growth. MAN TP underway - phased and modular infrastructure investment to optimise value and manage risk. Routes continue to increase with our airports now serving 282 destinations around the world. MAG Developments continues to maximise the value of MAG’s property holdings. Well positioned for continued growth – aviation pipeline, spare runway capacity, focussed MAN & STN investment.

FY17 Financial Highlights The continuing success of MAG’s commercial and operational strategy is reflected in a 8% year on year increase in passenger senger numbe bers rs and an 8% incre reas ase in EBITD TDA EBITD TDA: £343m m (+8%) %) Group p Pax: 55.9 .9m m (+8%) %) Commercial strategy driving Strong EBITDA growth record passenger numbers ahead of plan and growth MAN Pax: : 26.2 .2m m (+12%) %) Cash genera erate ted from operations ations: : £328m m (+1%) %) MAN passengers at all time high Excellent cash conversion STN Pax: 24.3 .3m m (+5%) %) Capital tal Inves estm tment ent: : £179m m (+43%) %) Jet2.com now flying from STN, its first base in the Improving efficiency and South East supporting growth EMA A and BOH Pax: 5.4m m Leverage: age: 2.7 .7x (-0.1 .1x) (+4%) %) Conservative financial Important dual role for leverage passengers and cargo Source: MAHL FY17 Annual Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY17 Results see Appendix on Page 31 7 7

Brexit Brexit it consens sensus s forecas casts ts indica icate te potential tial lower levels ls of economic omic growth th. MAG's 's Financial cial strate tegy gy means stron ong financial cial positio ition to deal with the potential tial impact acts s of Brexit  Strong Financial Position: Airport Businesses in strong positions:  financial performance ahead of five-year plan  Manchester: and strong growth in its core businesses;  Operates as northern hub – strong catchment area  a capital programme that can be flexed to and good geographical location for airlines. economic conditions;  Stansted:  low leverage and debt levels compared to its  Strength in low cost carrier base historically the most higher medium-term optimal levels; and resilient passenger segment.  commitment to two strong BBB+/Baa1 ratings  Significant passenger overspill from LHR/LGW system enabling efficient capital market access. in the 10-15 years before a runway is built at LHR.  The UK Government has identified aviation as its top  50% inbound traffic benefit from FX rates. transport Brexit issue, and highlighted the importance of minimising uncertainty for 'network industries' including aviation - MAG continues to work closely with airlines, other airports and the UK Government.  The EU has highlighted the importance of securing a new deal for aviation.  Latest set of results demonstrates resilience to economic and political uncertainty. 8

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Commercial Growth Strategy Yielding Results The success of MAG’s commercial strategy is reflected in a 8% year -on on-ye year ar incre reas ase in passenger sengers  MAN and STN pax growing strongly. FY17 7 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.  5% growth in passenger numbers in year  Named ‘Best London Airport’ 2016. STN  Jet2.com makes STN its South East base.  EMA and BOH delivering good growth in passenger numbers even with the EMA & BOH runway resurfacing works.  EMA is the largest airport for dedicated cargo in the UK. Source: MAHL FY17 Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY17 Results see Appendix on Page 31 10

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 sixth xth year ar of sustaine ustained growt wth STN…strong growth since acquisition EMA…consistent performance BOH…broadly stable but small component of MAG total Source: Management Information 11

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 (20.6% 6% of UK marke ket t reflectin ting g +0.3% % increas ase). ). MAN and STN have added more passenger sengers s than LGW and LHR HR comb mbine ined. d. MAG AG has s 2 o of the e top 5 UK airports orts for pass sseng enger growth owth and the fast stest est growin owing g airport ort outsi side e of the London on syst stem em. . Source: CAA – March 2017, March 2014 12

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 282 routes – more than any other UK airpor ort t group. Capacity city is growing ing togeth ther r with introd oduction ction of new routes s in Winter 2016 and Summ mmer r 2017 North Americ ica Europe pe / North Afric ica   Coba balt lt Aero – new service to Cyprus Singa ngapore pore Airli line nes commenced new from MAN and STN launched in service to Houston in Winter ’16  Summer’16 New MAN Thomas Cook launched  New Ryanair ir and EasyJe yJet rout utes from Los Angeles and Boston in Summer STN/MAN/BOH in Winter ’16 ’16, Tobago from Winter ’16 and  New Jet2 routes launched from EMA to San Francisco from March ’17  Salzburg and Grenoble in Winter ’16 Virgin gin began services to San  Flybe be – new Winter ‘16 services from Francisco and Boston from MAN, MAN to Chambery and Innsbruck both in March ‘17   New Monarch services from MAN to New Thomson services from STN to Zagreb, Oporto and Stockholm Montego Bay in ‘17  launched in Winter ’16 Addit dition ional MAN – New York  BA weekend services from STN in capacity with Thomas Cook in Summer ‘16 and MAN for Summer ‘17 Summer ’17  Jet2 - new 6-aircraft base at STN from Summer’17, serving 27 destinations  New Krakow w and d Naple les services from BOH Middl dle East  New Vueling ing and d Norwegi gian services from MAN  Emirates at MAN became an all Airbus A380 operation from January ‘17 Far East  Adding capacity – over 70 direct  links ks a week from MAN this summer Haina inan Airli lines launc unched d a 4 x x weekly kly  servic ice to Beijing from MAN in June ‘16 New MAN Oman Air commenced daily service to Muscat from May ‘17 – going to dail ily y from July ‘17   New MAN Saudia to launch new Singapore Airlines now operate non- service to Riyadh from June ‘17 stop p to Singapo pore from MAN  Thomson grew w its MAN long haul 13 network with services to Phuket, Mauritius and Goa Source: Management Information

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FY17 EBITDA Robust st trading ing perform rmance ce acros oss s the Group. p. MAG EBITD TDA has incre reas ased d by £101m m (42%) ) since ce the acquis isitio ition of STN in 2013. EBIT ITDA DA (£ million) on) Source: MAHL FY17 Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY17 Results see Appendix on Page 31 15