stakeholder presentation stakeholder presentation - 10 mar 2017.pdf · total fixed assets rab ......

STAKEHOLDER PRESENTATIONMARCH 2017

AIRPORTS COMPANY SOUTH AFRICA 2

CONTENTS

3 OVERVIEW

8 GOVERNANCE

10 ECONOMIC REGULATION

15 FINANCIAL PLAN

24 FUNDING PLAN

28 KEY TAKEOUTS

OVERVIEW


FOOTPRINT

BRAZIL

GUARULHOS INTERNATIONAL

AIRPORT IN SÃO PAOLO

(Equity investment)

INDIA

CHHATRAPATI SHIVAJI

INTERNATIONAL AIRPORT

IN MUMBAI

(Equity investment)

GHANA

KOTOKA

INTERNATIONAL

AIRPORT IN ACCRA

(Technical advisory and

consulting services)

SOUTH AFRICA

TOTAL ANNUAL DEPARTING PASSENGERS

19 374 329AIRCRAFT LANDINGS

284 285TOTAL PERMANENT EMPLOYEES

2 841


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


SUSTAINABILITY

FRAMEWORK

Sustainability

Framework

People and SocietyBroad-based social inclusion

and deracialisation of the economy

BusinessEconomic Growth

EnvironmentEnvironmental

Sustainability


FIVE BUILDING BLOCKS

FOR SUCCESS

1 OUR GOVERNANCE

FRAMEWORK AND

OPERATING MODEL

2 BUSINESS

DIGITISATION

4SUPPLY CHAIN

MANAGEMENT

EVOLUTION

3 ENVIRONMENTAL

SUSTAINABILITY

FRAMEWORK

5ECONOMIC

TRANSFORMATION

FRAMEWORK

GOVERNANCE


GOVERNANCE

STRUCTURE ACSA Board

Audit & Risk Committee

Chief Audit Executive

Board Investment Committee

Executive Committee

Chief Financial Officer*

Chief Executive Officer*

Chief Strategy and Performance

Officer

Chief Financial Officer

Chief of StaffGroup Manager Transformation

Company Secretary

Remuneration and Nominations

Committee

Social & Ethics Committee

Board Regulation Committee

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

ECONOMIC REGULATION


ECONOMIC

REGULATORY

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 2016 – 2020

2015/16 2016/17 2017/18 2018/19 2019/20

Permission Application -7.50% -7.50% 0.0% 0.0% 0.0%

Corporate Plan 0.0% 0.0% -35.5% 5.8% 7.4%

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


RETURNS VS

REGULATORY WACC

7,9%

11,4%

10,6% 10,6%10,4%

5,1%

5,9%

6,9%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

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


TOTAL ASSETS VS RAB

0

5000

10000

15000

20000

25000

30000

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20

R m

illio

n

Total Fixed Assets RAB

Difference between RAB & Total Fixed Assets attributable to the following:

› Work in progress

› Assets restatement due to IFRS

FINANCIAL PLAN


KEY FINANCIAL

HIGHLIGHTS – 2015/16FY

6.8%REVENUER8.3BN (2015: R7.8BN)

4.9%TOTAL ASSETSR29.9BN (2015: R28.5BN)

7.1%EBITDAR5.2BN (2015: R4.8BN)

6.8%TOTAL LIABILITIESR12.7BN (2015: R13.7BN)

59.0%CAPITAL EXPENDITURER1.3BN (2015: R830M)

20.3%PROFIT AFTER TAXATIONR1.96BN (2015: R1.63BN)

4.0%AIRCRAFT LANDINGS284K (2015: 273K)

8.6%DEPARTING PASSENGERS19.4M (2015: 17.8M)


TRAFFIC VOLUME

-

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

International Regional Domestic Unscheduled

2016 2017 2018 2019 2020

-

20

40

60

80

100

120

140

160

180

International Regional Domestic Unscheduled

2016 2017 2018 2019 2020

8,6%

2,4% 2,7%

4,3% 4,3%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

10,0%

2016 2017 2018 2019 2020

4,0%

0,4%

-0,1%

4,9%

3,0%

-1,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

2016 2017 2018 2019 2020

DEPARTING PAX(THOUSANDS)

AIRCRAFT LANDINGS (THOUSANDS)

PAX GROWTH RATE

LANDING GROWTH RATE


PROJECTED FINANCIAL

INDICATORS

8 647

7 042

7 703

8 448

4 964

3 062 3 357

3 840

4 262

2 915

3 237 2 835

1 949

815 1 044

1 502

10,4%

4,2%

5,1%

6,8%

5,1%

5,9%

6,9%

-1,0%

1,0%

3,0%

5,0%

7,0%

9,0%

11,0%

13,0%

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2017 2018 2019 2020

R m

illio

n

Total revenue EBITDA Cash generated Net profit Return on equity Return on capital employed


REVENUE ANALYSIS

38% 38%

50% 49% 48%

0%

10%

20%

30%

40%

50%

60%

-

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

10 000

2016 2017 2018 2019 2020

R m

illio

n

Aeronautical revenue Non-aeronautical revenue Non-aeronautical %

Total revenue is based on the total revenue allowance as permitted by

the economic regulator


1 111 1 178 1 267 1 386 1 497

226 236255

268287536

549580

612646

188180

190216

208688

729783

864940

27 12

59

65

77

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

Actual Forecast Budget Plan Plan

2016 2017 2018 2019 2020

R m

illio

n

Retail Car rental Car parking Advertising Property Advisory services

NON-AERONAUTICAL

REVENUE

Growth in international passengers at Cape Town International Airport reduced the

yield per passenger for retail revenue in the 2016/17 forecast


1 179 1 277 1 364 1 518 1 654

913 1 045

1 085

1 232 1 296 313

335 362

393 417

320

406 413

396 395

246

274 288

329

343

154

198

309

309

336

124

160

160

164

172

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

5 000

2016 2017 2018 2019 2020

R m

illio

n

Personnel Costs Outsourced Services Utilities

Corporate Services & Administration Rates & Taxes Information & Communciation Services

Marketing

OPERATING EXPENSES

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


CAPITAL EXPENDITURE

156

514

768

30

64

2

189

286

268

315

977

1 060

67

112

133

757

1 953

2 232

-

500

1 000

1 500

2 000

2 500

2018 2019 2020

R m

illio

n

Capacity Commercial

Efficiency & Technology Refurbishment & Replacement

Statutory & Compliance

CAPEX SPENT – 2014 TO 2017 PROJECTED CAPEX – 2018 TO 2020

2018 to 2020

Capex Budget amounts to

R4.9 billion

928

830

1 321

966

-

200

400

600

800

1 000

1 200

1 400

2014 2015 2016 2017F

R m

illio

n


MAJOR PROJECTS

Cargo warehouse and office refurbishment - 2018

Terminal A refurbishment and redevelopment - 2020

Remote apron stands - 2023

New domestic arrivals Terminal - 2020

New runway realignment – 2021

Aircraft parking stands - 2023

KING SHAKA

Apron stands and bravo taxiway extension - 2020

* Please refer to annexures for detailed major projects

http://www.acsa.co.za/home.asp?pid=228



FUNDING PLAN


DEBT EVOLUTION &

MATURITY PROFILE

(5)

0

5

10

15

20

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

YT

D

Change in debt levels Debt levels

Credit rating

agency Date

Long-term national

scale Global scale Outlook

10 May 2016 Aa1.za Baa2 Negative

DEBT MATURITY PROFILE (R’BILLION) EVOLUTION OF DEBT (R’BILLION)

17

10

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

4,5

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2029 2030 2031

Fixed rate bonds Inflation linked bonds

Bank Loans DFI Loans (INCA & AFD)

Inflation linked bond


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

THREE YEAR FUNDING

REQUIREMENTS

2 728

10 262

1 463

4 941

2 889

503

2 406

788

Open ing Cash Cash Gene ra ted Tax Inves t i ng Ac t i v i t i es

Deb t Repaymen t

O the r cos t s In te res t & Othe r F i nance Cos ts

End ing Cash


EBITDA INTEREST COVER RATIO (ABOVE 3X) NET DEBT TO EBITDA RATIO (BELOW 4X)

DSCR RATIO BY AVAILABLE CASH (ABOVE 1.5X)

KEY CREDIT METRICS

1,7x

2,2x

2,9x 3,3x

3,9x

5,7x 5,8x

3,7x

4,2x

6,3x

2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F

6,1x

4,1x

2,9x

2,3x1,8x

1,5x1,4x

2,0x

1,9x1,6x

2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F

2.1x 2.0x 2.2x2.2x

3.3x

5.9x

4.9x

1.9x

4.5x

2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F

NET DEBT/CAPITALIZATION (BELOW 65%)

62%59%

53%

46%

39%

31%26% 24% 23% 22%

2011A 2012A 2013A 2014A 2015A 2016A 2017E 2018F 2019F 2020F

27KEY TAKEOUTS


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

29ANNEXURE:

MAJOR PROJECTS


A. ORTIA

TERMINAL A REFURBISHMENT

BUSSING GATES

ADDITIONAL BAGGAGE CAROUSEL IN TERMINAL A

RAS


B. CTIA

New

Realigned

Runway

Existing

Runway

CTIA RUNWAY CTIA APRONS

DOMESTIC ARRIVALS

New

Domestic

Arrivals

TERMINAL 2

Terminal 2


C. KSIA

BRAVO TAXIWAY EXTENSION


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.

stakeholder presentation stakeholder presentation - 10 mar 2017.pdf · total fixed assets rab ......

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