STAKEHOLDER PRESENTATION

Transcription

1 STAKEHOLDER PRESENTATION MARCH 2017

2 AIRPORTS COMPANY SOUTH AFRICA 2 CONTENTS 3 OVERVIEW 8 GOVERNANCE 10 ECONOMIC REGULATION 15 FINANCIAL PLAN 24 FUNDING PLAN 28 KEY TAKEOUTS

3 OVERVIEW

4 AIRPORTS COMPANY SOUTH AFRICA 4 FOOTPRINT GHANA KOTOKA INTERNATIONAL AIRPORT IN ACCRA (Technical advisory and consulting services) BRAZIL GUARULHOS INTERNATIONAL AIRPORT IN SÃO PAOLO (Equity investment) SOUTH AFRICA TOTAL ANNUAL DEPARTING PASSENGERS AIRCRAFT LANDINGS TOTAL PERMANENT EMPLOYEES INDIA CHHATRAPATI SHIVAJI INTERNATIONAL AIRPORT IN MUMBAI (Equity investment)

5 AIRPORTS COMPANY SOUTH AFRICA 5 VISION 2025 TO BE THE MOST SOUGHT-AFTER PARTNER IN THE WORLD FOR THE PROVISION OF SUSTAINABLE AIRPORT MANAGEMENT SOLUTIONS BY 2025 RUN AIRPORTS DEVELOP AIRPORTS GROW OUR FOOTPRINT

6 AIRPORTS COMPANY SOUTH AFRICA 6 SUSTAINABILITY FRAMEWORK People and Society Broad-based social inclusion and deracialisation of the economy Sustainability Framework Business Economic Growth Environment Environmental Sustainability

7 AIRPORTS COMPANY SOUTH AFRICA 7 FIVE BUILDING BLOCKS FOR SUCCESS 1 OUR GOVERNANCE FRAMEWORK AND OPERATING MODEL 2 BUSINESS DIGITISATION 3 ENVIRONMENTAL SUSTAINABILITY FRAMEWORK 4 SUPPLY CHAIN MANAGEMENT EVOLUTION 5 ECONOMIC TRANSFORMATION FRAMEWORK

8 GOVERNANCE

9 AIRPORTS COMPANY SOUTH AFRICA 9 GOVERNANCE STRUCTURE ACSA Board Audit & Risk Committee Board Investment Committee Executive Committee Remuneration and Nominations Committee Social & Ethics Committee Board Regulation Committee Chief Financial Officer* Chief Executive Officer* Chief Audit Executive Chief Strategy and Performance Officer Chief Financial Chief of Staff Officer Group Manager Transformation Company Secretary Chief Operating Officer Group Executive Business Development Group Executive Human Resources Group Executive Corporate Affairs Group Executive Governance and Assurance Group Executive Airports Management Group Executive Infrastructure Asset Mngt Group Executive Technical Services and Solutions Chief Information Officer General Manager O.R. Tambo International Airport General Manager Cape Town International Airport General Manager King Shaka International Airport General Manager Regional Airports * Executive Director

10 ECONOMIC REGULATION

11 AIRPORTS COMPANY SOUTH AFRICA 11 ECONOMIC REGULATORY 2015/ / / / /20 Permission Application -7.50% -7.50% 0.0% 0.0% 0.0% Corporate Plan 0.0% 0.0% -35.5% 5.8% 7.4% ECONOMIC REGULATORY REVIEW Limited progress made since the publication of the Draft Amendment Bill Amendment to primary legislation to introduce a merit-based appeals mechanism was not finalised in time for the 2015/16 to 2019/20 Permission Pre-funding remains absent from the funding model FINAL PERMISSION DECISION Agreements with the Economic Regulator To be resolved Sharing of proceeds of a land sale transaction Explicit disallowance of projects Smoothing of revenue over permission period Direct adjustment to OPEX forecast Reasonable efficiency factors Ring-fencing of share investments

12 AIRPORTS COMPANY SOUTH AFRICA 12 RETURNS VS REGULATORY WACC 14,0% 12,0% 11,4% 10,6% 10,6% 10,4% 10,0% 8,0% 7,9% 6,9% 6,0% 5,1% 5,9% 4,0% 2,0% 0,0% 2012/ / / / / / / /20 Return on capital employed Regulatory WACC Claw-backs that would have been effective in 2015/16 were postponed (and compounded) to 2017/18 by the delay to the Permission

13 R million AIRPORTS COMPANY SOUTH AFRICA 13 TOTAL ASSETS VS RAB / / / / / / / /20 Total Fixed Assets RAB Difference between RAB & Total Fixed Assets attributable to the following: Work in progress Assets restatement due to IFRS

14 FINANCIAL PLAN

15 AIRPORTS COMPANY SOUTH AFRICA 15 KEY FINANCIAL HIGHLIGHTS 2015/16FY 6.8% REVENUE R8.3BN (2015: R7.8BN) 59.0% CAPITAL EXPENDITURE R1.3BN (2015: R830M) 4.9% TOTAL ASSETS R29.9BN (2015: R28.5BN) 20.3% PROFIT AFTER TAXATION R1.96BN (2015: R1.63BN) 7.1% EBITDA R5.2BN (2015: R4.8BN) 8.6% DEPARTING PASSENGERS 19.4M (2015: 17.8M) 6.8% TOTAL LIABILITIES R12.7BN (2015: R13.7BN) 4.0% AIRCRAFT LANDINGS 284K (2015: 273K)

16 AIRPORTS COMPANY SOUTH AFRICA 16 TRAFFIC VOLUME DEPARTING PAX(THOUSANDS) PAX GROWTH RATE ,0% 9,0% 8,0% 7,0% 8,6% ,0% 5,0% 4,0% 3,0% 2,0% 1,0% 2,4% 2,7% 4,3% 4,3% - International Regional Domestic Unscheduled 0,0% AIRCRAFT LANDINGS (THOUSANDS) LANDING GROWTH RATE ,0% 5,0% 4,0% 3,0% 4,0% 4,9% 3,0% International Regional Domestic Unscheduled 2,0% 1,0% 0,0% -1,0% 0,4% -0,1%

17 R million AIRPORTS COMPANY SOUTH AFRICA 17 PROJECTED FINANCIAL INDICATORS ,0% ,4% ,0% ,0% ,1% 4,2% ,9% 5,1% ,9% 6,8% ,0% 5,0% 3,0% ,0% Total revenue EBITDA Cash generated Net profit Return on equity Return on capital employed -1,0%

18 R million AIRPORTS COMPANY SOUTH AFRICA 18 REVENUE ANALYSIS % 49% 48% 60% 50% % 38% 40% % % % % Aeronautical revenue Non-aeronautical revenue Non-aeronautical % Total revenue is based on the total revenue allowance as permitted by the economic regulator

19 R million AIRPORTS COMPANY SOUTH AFRICA 19 NON-AERONAUTICAL REVENUE Actual Forecast Budget Plan Plan Retail Car rental Car parking Advertising Property Advisory services Growth in international passengers at Cape Town International Airport reduced the yield per passenger for retail revenue in the 2016/17 forecast

20 R million AIRPORTS COMPANY SOUTH AFRICA 20 OPERATING EXPENSES Personnel Costs Outsourced Services Utilities Corporate Services & Administration Rates & Taxes Information & Communciation Services Marketing The Group continues to focus on sustainable cost reductions within the context of the strategic focus areas Some regulated charges continue to increase at a rate above inflation

21 R million R million AIRPORTS COMPANY SOUTH AFRICA 21 CAPITAL EXPENDITURE CAPEX SPENT 2014 TO 2017 PROJECTED CAPEX 2018 TO F to 2020 Capex Budget amounts to R4.9 billion Capacity Efficiency & Technology Statutory & Compliance Commercial Refurbishment & Replacement

22 AIRPORTS COMPANY SOUTH AFRICA 22 MAJOR PROJECTS Cargo warehouse and office refurbishment Terminal A refurbishment and redevelopment Remote apron stands New domestic arrivals Terminal New runway realignment 2021 Aircraft parking stands KING SHAKA Apron stands and bravo taxiway extension * Please refer to annexures for detailed major projects

23 FUNDING PLAN

24 YTD AIRPORTS COMPANY SOUTH AFRICA 24 DEBT EVOLUTION & MATURITY PROFILE EVOLUTION OF DEBT (R BILLION) DEBT MATURITY PROFILE (R BILLION) 20 4,5 4,0 Inflation linked bond , ,0 2,5 5 2,0 0 1,5 1,0 (5) 0,5 0, Change in debt levels Debt levels Fixed rate bonds Bank Loans Inflation linked bonds DFI Loans (INCA & AFD) Credit rating agency Date Long-term national scale Global scale Outlook 10 May 2016 Aa1.za Baa2 Negative

25 AIRPORTS COMPANY SOUTH AFRICA 25 THREE YEAR FUNDING REQUIREMENTS O p e n i n g C a s h C a s h Generated Ta x I n v e s t i n g A c t i v i t i e s D e b t R e p a y m e n t O t h e r c o s t s I n t e r e s t & O t h e r F i n a n c e C o s t s E n d i n g C a s h Capex & debt redemptions to be funded by cash carried forward plus cash generated Debt redemptions total R2.9 billion Refinancing requirements considerations AIR01 fixed rate bonds and AIRL01 inflation linked bonds

26 AIRPORTS COMPANY SOUTH AFRICA 26 KEY CREDIT METRICS EBITDA INTEREST COVER RATIO (ABOVE 3X) NET DEBT TO EBITDA RATIO (BELOW 4X) 5,7x 5,8x 6,3x 6,1x 2,9x 3,3x 3,9x 3,7x 4,2x 4,1x 2,9x 1,7x 2,2x 2,3x 1,8x 1,5x 1,4x 2,0x 1,9x 1,6x 2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F 2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F NET DEBT/CAPITALIZATION (BELOW 65%) DSCR RATIO BY AVAILABLE CASH (ABOVE 1.5X) 5.9x 62% 59% 53% 46% 39% 31% 26% 24% 23% 22% 2.1x 2.0x 2.2x 2.2x 3.3x 4.9x 1.9x 4.5x 2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F

27 KEY TAKEOUTS 27

28 AIRPORTS COMPANY SOUTH AFRICA 28 KEY TAKEOUTS STRATEGY THAT IS AIMED AT LONG TERM SUSTAINABLE VALUE CREATION CONTINUOUSLY IMPROVING THE PASSENGER EXPERIENCE IDENTIFYING AND SECURING NEW BUSINESS OPPORTUNITIES STRENGTHENING REPUTATION AND CONTINUING TO BUILD WIN-WIN PARTNERSHIPS WITH OUR STAKEHOLDERS MANAGING AND DEVELOPING A HIGH PERFORMANCE TEAM MOVING TOWARDS A DIGITIZED BUSINESS ACCELERATING SUSTAINABILITY AND TRANSFORMATION PROGRAMMES REDUCING ENVIRONMENTAL IMPACT

29 ANNEXURE: MAJOR PROJECTS 29

30 AIRPORTS COMPANY SOUTH AFRICA 30 A. ORTIA TERMINAL A REFURBISHMENT ADDITIONAL BAGGAGE CAROUSEL IN TERMINAL A BUSSING GATES RAS

31 AIRPORTS COMPANY SOUTH AFRICA 31 B. CTIA CTIA RUNWAY CTIA APRONS New Realigned Runway Existing Runway DOMESTIC ARRIVALS TERMINAL 2 New Domestic Arrivals Terminal 2

32 AIRPORTS COMPANY SOUTH AFRICA 32 C. KSIA BRAVO TAXIWAY EXTENSION

33 AIRPORTS COMPANY SOUTH AFRICA 33 DISCLAIMER The information contained in this presentation is confidential, and is intended solely for this presentation. This presentation may contain information proprietary to the Airports Company South Africa SOC Limited ( the Company ), and may not be reproduced or disseminated in whole or in part without the Company's written consent. The Company is not acting as your adviser in any transaction that may be proposed herein, and this presentation does not constitute a recommendation, guidance or proposal to enter into any transaction. Any decision to enter into a transaction should be made on the basis of information contained within an offering circular, programme memorandum or prospectus published in relation to such an offering. The Company does not guarantee or otherwise assure the expected results of any transaction as envisaged in this presentation. You shall not be entitled to place any reliance on the information contained in this presentation for the purposes of entering into any proposed transaction or otherwise.