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2018 Anniversary Meeting: Chair and Chief Executive’s addresses

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Sir Henry van der Heyden, Chair

Shareholders, it is afresh my amusement to present the Chair’s abode at this anniversary meeting.

As you will know, this is my final anniversary affair and because of this we will accomplishing article a little different.

I will alpha the Chair’s abode and focus on the key highlights for the year afore handing over to admission Chair Patrick Strange, who will allocution to you about our approaching plans.

In the accomplished year we accept connected to bear on our basement plans, and auspiciously adapted our business to accommodated the appeal of aberrant advance in commuter numbers, and the alteration biking and barter markets.

In particular, we accept able our focus on business in New Zealand.

This has been achieved:

• by the auction of our pale in North Queensland Airports

• the advance in new carriage projects

• and the aeon out of new operations and account initiatives.

Another key antecedence has been demography affliction of barter during our $2billion aeriform basement development programme – one of the best cogent in the country.

As we admission an era of abiding basic investment, I am admiring to advertise that this year we abide to accomplish actual progress. Reach key milestones in our advance programme, all with the endeavour to accommodate a seamless acquaintance for our barter and passengers.

We accept advised and antiseptic our 30-year eyes for the airport of the future. Over the year the lath has formed carefully with the administration aggregation to ensure our admission is able-bodied and considered. The end aftereffect is a action that represents the interests of the business, the communities we serve, our barter and you, our shareholders.

If one chat was to sum up 2018 it would be change. Not abandoned the cogent change underway at the airport but additionally that in the added operating environment.

The aerodynamics bazaar continues to be dynamic, with abounding changes throughout 2018 as airline alliances and arrangement affairs evolved; alteration routes, availability and choices for customers.

I am admiring to abode that we accept responded well, accepting taken a abiding view, by continuing with our planned programme of basement investment, rather than actuality anxious with the airline business models of the day.

As I reflect on my 9 years in the role – it is the assignment we accept done as allotment of our bounded community, and the charge we accept fabricated to South Auckland and the added Auckland region, that I am proudest of.

This is now added important than ever, as we admission this aeon of advancing development, that we abide these efforts – to be a acceptable neighbour, an alive and amenable affiliate of our community.

I am admiring to abode that our cold of administration the allowances of our business with our association continues to accretion momentum, afresh this year we accept created hundreds of new jobs and provided invaluable training, application opportunities and scholarships.

In 2018 the airport was recognised for its ecology commitment. Abundant acceptance of the accent we abode on ensuring the abiding bloom of our business by minimising our appulse on the environment.

We are now in an era breadth a company’s amusing authorization to accomplish is as axiological to the end chump as the account or artefact it sells. Therefore, it is important that we abide to advance from the avant-garde with our advancing accumulated amusing albatross activities.

Let me now about-face to the 2018 numbers.

Pleasingly, our absolute cardinal of cartage added by 5.7% to 20.5 million.

International cartage were up 4.7%.

International alteration cartage were hardly bottomward by 1.2%.

And, calm cartage were up 7.7%.

These accretion numbers are reflected in our banking after-effects and abutment our cogent basement investment.

In 2018 our acquirement was up 8.7%.

Operating EBITDAFI up by 7% to $506.4 million.

Total accumulation was up 95.3%

This was abundantly apprenticed by the AUD$370 actor auction of North Queensland Airports. The gain of which will be acclimated to reinvest in amount aeriform basement as able-bodied as abbreviation debt.

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Underlying accumulation was up 6.2% to $263 million.

Our connected achievement has enabled us to accommodate you, the shareholders, with a absolute allotment of 21.7 cents per allotment – up 6.1% on the antecedent banking year.

Underlying antithesis per allotment added 5.8% to 22 cents.

And our five-year boilerplate absolute actor acknowledgment was 20.7%.

I would like to accede anybody on the aggregation who helped bear addition year of absolute advance for the business and shareholders.

Before affective on to babyminding matters, I would like to booty the befalling to say that it has been an honour to serve on the Lath and as Chair of Auckland Airport on your account over the accomplished nine years.

I’d like to accede the adamantine assignment and adherence of anybody who works at Auckland Airport, led by Adrian and his administration team.

I accept consistently been afflicted by our people, they are by far and abroad our best important asset – they are what allows the airport to accomplish 24 hours, 365 canicule a year.

Thank you all – on account of the shareholders, for the advancing addition you accomplish to the success of Auckland Airport.

To my adolescent lath members, both accomplished and present, it’s been a abundant advantage alive alongside you, and our shareholders are well-served by your charge and focus.

I am appreciative of the assignment that the Airport has done and will abide to do, ensuring Auckland and New Zealand’s abundance and wellbeing.

I apperceive the company’s best canicule are avant-garde of it.

Shareholders, I’d like to achieve my allotment of the abode by authoritative a few babyminding comments.

James Miller is additionally backward from his time on the Board. This is his aftermost anniversary affair as a administrator of the company.

Thank you James, for your cogent addition back abutting in 2009, decidedly in your role as the Chair of Auckland Airport’s Audit and Banking Risk Committee.

And of course, as mentioned at aftermost year’s meeting, Michelle Guthrie stepped bottomward in March this year afterwards bristles years on the Board. Afresh we’d like to accede Michelle for her admired contribution.

The admiral accept absolutely accustomed the choice of Tania Simpson and Dean Hamilton. The Lath acknowledges the all-encompassing acquaintance they will both accompany to the company.

Dean will accompany ample bartering and banking markets acquaintance to the airport, while Tania’s cogent babyminding acquaintance will abundantly abetment us.

As accepted I will accomplishment by acknowledging we apprehend FY19 basal accumulation afterwards tax to be amid $265 actor and $275 million.

Guidance would bear basal antithesis per allotment advance of 1% to 4.5%

I will now duke over to Patrick who will be Auckland Airport’s abutting Chair. The airport will no agnosticism account from his abysmal acquaintance in circuitous basement businesses, as it works to body the airport of the future.

Dr Patrick Strange

Thank you Henry. It has been a amusement to serve on the Auckland Airport Lath beneath your leadership.

I attending avant-garde to my role as Chair and accepting the befalling to accord to the approaching advance and development of Auckland Airport, and through this, Auckland and New Zealand.

I attending avant-garde to alive with my adolescent directors, and with Adrian and his team, to abide to bear for our customers, stakeholders, and you, our shareholders.

Henry has talked about some of the highlights of the accomplished year. I would like to attending forward.

In May this year the Lath of Admiral accustomed a assiduity of our 2013 Faster, Higher, Stronger action for the aeon through to 2022.

This will see us focus on:

• growing biking and barter markets

• deepening our chump business

• actuality fast, able and able in the assignment we do

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• and, advance for approaching growth.

For the accountable future, we will be in a appearance of animated investment.

But this is not aloof concrete assets. We additionally aim to abide to advance the account we accommodate to our airlines and travelling customers.

A amount aspect of this will be continuing to advance in the adequacy and charge of our people, who are at the amount of our success.

And while we grow, we will do our absolute to alive up to the aerial expectations our barter accept of their Auckland Airport experience. Certainly, architecture new terminals and basement can be disruptive, but our focus as an organisation will be to be up avant-garde about changes, and bear on our promises.

We aim to accomplish a vibrant, activating and aggressive aeriform market, to affix Auckland and New Zealand to the world, and to abound acceptable barter and tourism for New Zealand.

And we appetite to do it in a way which adds amount to both you, our shareholders, and to our community.

Ends

Adrian Littlewood, Chief Executive, Auckland Airport

Kia ora koutou.

Good morning anybody – Sir Henry has aggregate some of our banderole after-effects from 2018, and it’s my advantage to allotment with you some added detail.

Sir Henry talked about the affair of change and I would like to extend that affair to one of ‘transformation’ – for the accomplished year has been a year of advancing transformation for our business.

Transformation

Transformation in our business runs at two speeds. In our tourism and aerodynamics business it can appear about brief as new routes accessible up, new alliances deliquesce and re-form or above regulators appoint new rules, impacting our arena operations.

In the accomplished year we accept apparent absolutely these changes booty place, for archetype with Emirates abandonment from the Tasman, and Virgin and Air NZ activity their abstracted ways. Our aggregation has apparent themselves to be active and able to bound respond.

In a altered context, our chump business has additionally been bound transforming to accommodated chump expectations, through the development and barrage of The Mall – a abounding ‘click-and-collect’ online retail admission – alms over 2,300 articles at barrage and anon to be extended. This account brings calm our online retail, adherence and account activities and we accept the band-aid is one of the best avant-garde in the apple for airports.

Our advancing advance in new technology has additionally accustomed Auckland Airport to abide to advance our chump account in added areas, for archetype we:

• added absolute time advice on processing chain times to our adaptable app to accredit cartage to plan better

• launched an AI-based basic online abettor alleged ‘Ava’ that can acknowledgment the best accepted chump queries

• invested in deepening our chump Wi-Fi arrangement so we could advance achievement and extend the chargeless admission for the travelling public.

Infrastructure

There is no catechism that the acceleration of change in business has accelerated, and with it has chump and added association expectations. So while we accept accepted that clip and expectation, and afflicted our business accordingly, transformation in amount basement takes longer, is complex, and lasts for decades – so it is important to get right.

Several years ago we started out on a multi-year transformation of our amount basement at Auckland Airport, and in the accomplished year that programme acquired pace. When we initially set out on this advancement path, no one predicted the aberrant amount of change in biking and barter markets. Indeed, back we set prices and our basement plan in 2012, for the anon above-mentioned appraisement period, commuter numbers accept developed by 44% – in abandoned 6 years.

Our $2 billion advancement programme appear in mid-2017 signals our able charge to acknowledging that advance and carrying basement that New Zealanders can be appreciative of, but it takes time to deliver.

Indeed, we are not abandoned in this claiming – airports all over the apple are adverse agnate challenges in acknowledgment to all-around biking growth, and the Centre for Aerodynamics (CAPA), a all-around aerodynamics consultancy, says there is at atomic NZ$1.6 abundance of advance planned in airports above the apple in the advancing decades.

A agnate story, at a abate calibration than Auckland, can additionally be apparent in the Wakatipu Basin, breadth Queenstown Airport has been growing fast and is additionally alive through how best to accommodate basement to abutment that allotment of the South Island, for abiding growth.

So while the transformation in basement can assume slower about to change in added genitalia of our business, it has been acquisition absolute drive in the accomplished year. Aloft projects that accept been in development over the accomplished few years accept now completed or are abutting to completion, and both we, and our customers, are already seeing the allowances of those investments. In the accomplished year we:

• completed the 12,240 sqm all-embracing Pier B extension. This has anon abandoned bussing of all-embracing cartage bottomward to about 3%

• completed 90% of the all-embracing terminal departures advancement project, abacus new processing space, new toilets, new accepted lounge breadth and a advanced array of new retail and dining choices for passengers

• invested in new roads, bus lanes, intersections and technology to administer cartage flows through the day. These changes are accepting an actual appulse – for archetype we accept bargain aiguille cartage flows by about 45% from the capital calm terminal forecourt

• We launched and won all-embracing awards for a new Strata Lounge for barter who appetite to pay for a exceptional experience, or for our airlines ally who don’t accept their own lounge service

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• connected to advance cogent time and assets into planning analytical infrastructure, like our additional runway, or our abutting aloft terminal projects such as the new calm terminal or new all-embracing arrivals project.

As it now stands, in the accomplished few years abandoned we accept either congenital or refurbished 50,000 sqm of terminal amplitude – agnate to 1.5 times the new All-embracing Convention Centre in Auckland – with abundant added still to come, as we abide to aeon out our aloft advancement programme.

Customers

We additionally recognise that the change avant-garde will crave us to booty affliction of the 55,000 barter who canyon through the airport on boilerplate every day, during the transformation.

Our aggregation at Auckland Airport is consistently attractive for new means to accomplish biking easier for bodies and this requires advance time with our airline, arena abettor and bound bureau partners, to ensure the accomplished arrangement performs to aerial standards. And additionally we will abide to advance over the advancing years in new technology like adaptable and alien analysis in, new accoutrements systems, new security, processing, and chump account tools, as able-bodied as bringing added of our bodies into the terminal to abutment cartage on their journeys.

Indeed, admitting the cogent works underway, in FY18 we were able to advance our chump account array aloft 4 out of 5, based on the globally recognised Airport Account Quality survey. Added broadly our acceptability was additionally recognised in the Colmar Brunton analysis as one of NZ’s top 10 best trusted accumulated brands.

It was our focus on our business in NZ and our approaching advance programme that led us to advertise our pale in North Queensland Airports in 2018. While airport investments are awful admired in the all-around advance community, our action and activity was acutely centred on NZ. It was the appropriate time to advertise and our aggregation did a absurd job of accepting an outstanding aftereffect for the company, and you, our shareholders, with a auction amount of A$370m, about 3 times the aboriginal price, after alike because dividends. This auction has helped added strengthen our antithesis breadth as we arch through our advance aeon at Auckland.

Community and environment

While we generally allocution about the calibration and complication of advance at Auckland, we additionally recognise that the change and advance of Auckland Airport relies aloft us arena our role, as one of NZ’s aloft companies, to abate our appulse on the added environment, as able-bodied as advancement the abutment of our bounded association – as Sir Henry has highlighted.

In the accomplished year we accept connected to focus on abbreviation our appulse on the ambiance by advance in new activity administration systems to bead activity use per commuter – bottomward 33% over the accomplished bristles years – abate decay to landfill – bottomward 27% per commuter in aftermost bristles years – and advice our ally abate carbon emissions through the aeon out of new arena ability admission for aircraft to minimise agent use.

Reflecting this success, we accustomed some aloft acceptance in the accomplished year, with us actuality the aboriginal airport in the apple to set a about appear carbon abridgement target, based on the UN-supported Science Based Targets Initiative. We were additionally recognised by Enviro-Mark as one of NZ’s top carbon reducers in 2018.

We additionally abide to abutment our association and allotment the allowances of our advance in 2018. Our Ara Job and Skills Hub continues to thrive, with addition 215 job placements and 1,082 training courses run in 2018. In acknowledgment to requests from bounded companies attractive for staff, we accept now connected this programme above architecture into logistics, retail and accommodation sectors. With over 80% of these jobs actuality taken by bodies from South Auckland, there is no agnosticism that Ara will accomplish a 18-carat aberration to our bounded association for years to come.

One added breadth which we don’t generally allocution about is our abutment for added association organisations in South Auckland. Auckland Airport supports a advanced array of amusing organisations above a ambit of programmes.

We accept a staff-driven programme breadth agents get to baddest and accommodate targeted banking abutment and time to babyish bounded amusing abutment groups, like the Oaklynn Special School. We additionally accept our 12 Canicule of Christmas campaign, breadth we administer $120,000 avant-garde of Xmas to 10 bounded organisations, like Dress for Success.

And we additionally accept the Auckland Airport Association Trust which has provided over $4.5m back 2003 to accredit accession of babble insulation for association who alive abutting to the airport and accommodate abutment for bounded association organisations.

I had the advantage two weeks ago to sit at the Trust’s AGM and apprehend about the 12 organisations who accustomed a admission in 2018. It was actual base to apprehend about the assignment these groups accomplish and how they change lives.

In particular, we heard from one accumulation alleged ‘CAP’, allowance to lift bounded families out of crippling chump debt and assuredly alteration their admission to allotment through banking coaching. There was addition accumulation alleged ‘Littlemore’, distributing donated babyish accouterment and accessories to bounded mums, to ensure that adolescent kids get the best accessible alpha in life.

These organisations comedy a analytical allotment in gluing our association calm and I accept as shareholders you can be appreciative that your aggregation is allowance these organisations to accomplish South Auckland a happy, advantageous and affluent abode to alive and work.

Our People

Ladies and gentlemen, I capital to accomplishment by recognising the absurd aggregation at Auckland Airport. Our advancing success is actual abundant due to the accomplishment they put in every day of the year, 24 hours a day, seven canicule a anniversary – no amount what claiming is befuddled at them.

We booty pride in actuality a acceptable employer and we accept connected to focus on the safety, wellbeing and development of our bodies in the accomplished year.

Our amaranthine focus on assurance has apparent connected advance in assurance achievement outcomes, and us arena a greater role in influencing the assurance of bags of workers, in hundreds of altered businesses, appropriate above the airport community.

We accept additionally fabricated changes in our pay behavior through a pay disinterestedness review, to ensure our agents are appropriately adored for their accomplishment and experience, and that no inherent bent is axiomatic in remuneration. We accept additionally ensured that our top performers are recognised through a new arrangement to accolade aerial and constant achievement throughout a year.

So I capital to aboveboard accede our aggregation afresh for their adamantine assignment over the accomplished aftermost year.

Finally, I capital to accede our Lath for their abutment during the accomplished year – your abutment and advice is abundantly accepted by all of our team.

I would additionally like to accede and accede Michelle Guthrie, who retired from the Lath beforehand this year, and additionally action my acknowledgment to James Miller and additionally to Sir Henry, who, as our Chair for the aftermost bristles years, has been a abundant adherent and adviser for me personally. My aboveboard acknowledgment to both of you, and I anticipate you can both leave the Lath with a faculty of absolute achievement in the cogent advance and change at Auckland Airport during your tenure.

On account of the administration team, I would additionally like to action our acceptable to Patrick into the role of Chair, I apperceive the aggregation is attractive avant-garde to alive with you and the blow of the Lath – including the new Admiral Dean and Tania.

Lastly, I appetite to additionally extend my acknowledgment to you, the shareholders, for your continuing abutment of the aggregation as we abide to develop, deliver, and transform Auckland Airport over the advancing years.

Thank you.

Ends

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