Investor Presentation Results for the Year Ended 31 March 2015 July - PowerPoint PPT Presentation

Investor Presentation Results for the Year Ended 31 March 2015 July 2015

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Introduction Neil Thompso mpson Chief Financial Officer, MAG Ken O’Toole Managing Director, Manchester Airport 3

Contents  FY15 Highlights  Passenger Growth & Commercial Development  Trading Performance  Capital Investment  Financing 4

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FY15 Highlights Anoth ther stron ong g year for MAG with financial cial outpe performa formance ce and investm tment t across ss the Group p to target t long-te term rm growth th  Continued strong growth in passenger numbers.  STN is the fastest growing major airport in the UK.  MAN passenger numbers at an all-time high.  Continued expansion of the route network with important developments in the Group’s offering. EBITDA ahead of 5-year plan and significantly up on last  year. STN terminal transformation on track – Phase 2 completed  in April 2015. Successfully refinanced the STN acquisition debt through the  issue of a second bond in April 2014. Sir Adrian Montague appointed as new Chairman with Ken  O’Toole now MAN MD and Andrew Cowan as CSO. Well positioned for growth – aviation pipeline, spare  capacity, focussed MAN & STN investment, MAG US. 6 6

FY15 Highlights The success of MAG’s commercial and operational strategy is reflected in significant improvements in passenger numbe bers rs and tradin ing g performa ormance ce EBITD TDA: £284m m (+17%) %) Group p Pax: 48.5 .5m m (+11%) %) Commercial strategy driving Strong EBITDA growth passenger growth ahead of plan MAN Pax: : 22.3 .3m m (+7%) %) Cash genera erate ted from operations ations: : £298m m (+30%) MAN passengers at all time high Excellent cash conversion STN Pax: 20.9 .9m m (+16%) %) Capex: : £123m (-£15m) m) STN is the fastest growing Ongoing capital investment major airport in the UK EMA A Pax: : 4.6 .6m (+7%) %) Leverage: age: 3.2 .2x (-0.4 .4x) EMA continues to grow Conservative financial leverage Source: MAG FY15 Annual Report & Accounts 7 7

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Commercial Growth Strategy Yielding Results The success of MAG’s commercial strategy is reflected in an 11% year -on on-ye year ar incre reas ase in passen senge gers rs  MAN, STN and EMA growing strongly. FY15 5 Pass sseng ngers ers (millions) ons)  Benefiting from a commercial strategy Group that incentivises growth. Total  Increased frequencies, additional 60.0 MAG capacity and new routes. +4.7m m 48.5 million  Busiest year on record – beats previous (+11%) 50.0 43.8 million record of 22.2 million set in FY07.  70+ airlines and in 200+ destinations. MAN  Demonstrates importance of MAN to UK 40.0 millions) MAN 22.3 aviation and wider capacity debate. +1.5m Passengers (mi 20.8 (+7%)  Fastest growing major airport in the UK. 30.0  Ten consecutive months of double digit STN % growth.  Important additions to long- and short- 20.0 STN haul connectivity. +2.9m 20.9 18.0 (+16%)  Solid growth at EMA – fully recovered 10.0 EMA & BOH following loss of bmibaby in FY13. EMA & BOH +0.3m  BOH is steady with a stronger outlook 5.3 5.0 (+6%) 0.0 for FY16. FY14 FY15 Source: MAG FY15 Annual Report & Accounts 9

Long- term Passenger Trends…Success of MAG’s Strategy The continued growth at MAN and EMA combined with the turnaround at STN illustrates the success of MAG’s comm mmercial rcial strate tegy gy and the quali lity ty of the catch chment ment areas MAN...f N...fourth ourth consec nsecutiv utive year r of growt wth STN…back on an upwards trajectory 22.3 23.0 22.0 Acquisition - 20.9 22.0 February 2013 21.0 20.8 Passengers (m) Passengers (m) 21.0 20.0 19.8 20.0 19.1 19.0 18.3 19.0 18.0 17.8 17.7 17.5 18.0 18.0 17.0 17.0 16.0 16.0 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 EMA…strong growth following loss of bmibaby in FY13 BOH…broadly stable but small component of MAG total 4.8 0.8 4.6 0.7 0.7 0.7 0.7 4.6 0.7 0.6 Passengers (m) Passengers (m) 4.3 4.4 4.3 0.6 4.2 4.1 0.5 4.0 4.0 0.4 3.8 0.3 3.6 0.2 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Source: Management Information 10

Above-Market Growth & 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 recaptur pture of lost st marke ket t share STN is the fastest growing airport in the London system… …and MAN is the fastest growing airport outside of London MAN 7.2% STN 16.1% BHX 6.6% GLA 6.3% LCY 13.1% ABZ 6.0% EMA LTN 5.8% 10.7% NCL 4.2% LGW 7.8% EDI 4.0% BRS 3.5% SEN 5.6% LBA 0.9% BFS 0.5% LHR 1.8% LPL (4.3%) - 2.5% 5.0% 7.5% 10.0% 12.5% 15.0% 17.5% 20.0% (6.0%) (4.0%) (2.0%) - 2.0% 4.0% 6.0% 8.0% 10.0% Year-on on-year growth (%) Year-on on-year growth (%) Source: CAA 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 more than 270 routes s – more than any other UK airport rt group. There has been significa ificant t success ccess in further widening ing our networ work k of service rvices. s. Sing ngapore e  Hong Kong  North Americ ica Europe / North h Afric ica Middl dle East Far East     Cathay’s direct connect ction on from om New MAN-NY service from Delta Continuing to add capacity – now 4 new Ryan anai air and EasyJe Jet STN  MAN to Hong Kong started in over 50 direct ct links a week week Addition onal al capac acity on MAN-Atlanta routes for Summer 2015  December 2014 and is the only  from Virgin Emirates has added a secon ond A380 Flybe now operat ating at STN with 3  direct scheduled route to China to their MAN-Dubai route Thomas Cook adding long-hau aul domestic routes  outside of London  Qatar now 2x daily on MAN-Doha service ces from om STN to Orlando, 2 new European an carriers at MAN -  Cancun & Las Vegas Vueling and Iberia Express Two o new MAN routes from Iraqi   Airways New MAN connect ction on to Miami and Ryanair Winter 2015 - 2 new STN N  NY from Thomas Cook (plus LA routes and extra a flights on 23 Turkish now 3x daily on MAN- and Boston from 2016) Istanbul existing routes Source: Management Information 12

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FY15 Trading Performance Group p EBITD TDA up by £42 mill llio ion (or 17%) from m £242 mill llio ion to £284mill 4millio ion  Robust growth in pax drives strong Group oup Incom ome e Statem tement nt aeronautical revenues. Aeron onautical tical  Aeronautical yields are broadly stable. revenue Group Group Variance Variance  Best use of capacity & incentivising off- £m £m FY15 FY14 (£) (%) peak traffic, new carriers & routes.  Pax growth drives the retail revenue Aeronautical 378.8 342.7 +36.1 +10.5% increase with retail yields broadly stable. Retail 134.3 119.4 +14.9 +12.5%  Retail yield uplift from STN TTP from FY16. Retail tail Car Parking 125.7 104.4 +21.3 +20.4%  Emphasis on creating commercial spaces and increasing positive dwell time. Other 99.6 104.7 (5.1) (4.9%)  Product innovation, distribution deals and Revenue 738.4 671.2 +67.2 +10.0% capacity / facilities investment drives growth  Yields have increased Y-on-Y by 8.7%. Car Parki king Employee costs (165.9) (153.5) (12.4) (8.1%)  Focus on providing more customer choice Non-employee costs (288.9) (277.2) (11.7) (4.2%) and maximising utilisation. Operating Costs (454.8) (430.7) (24.1) (5.6%)  Investment in security and customer service to support growth. Operating ting  Tight control of underlying costs and focus Disposal of fixed assets - 1.4 (1.4) n/a Costs ts on delivery of efficiency programmes.  Costs per pax down by £0.46 (or 4.6%) EBITDA 283.6 241.9 +41.7 +17.2% Source: MAG FY15 Annual Report & Accounts 14

FY15 EBITDA Strong g tradin ing g performa ormance ce acros oss s the portfoli olio o of assets ts with the benefits fits of MAG ownersh rship ip of STN now flowi wing g through gh to the bottom om line EBIT ITDA DA (£ million) on) Total 350 MAG +£42m m £284 million 300 (+17%) £242 million 250 MAN 138 +£15m 200 (+12%) 123 150 STN 100 +£26m 115 (+29%) 89 50 Other +£1m 30 31 (+5%) 0 FY14 FY15 Source: MAG FY15 Annual Report & Accounts 15

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