Share Investor Q & A: Auckland Airport's Simon Moutter

Auckland International Airport Ltd [AIA.NZX] is a company with an asset that is known by most New Zealanders who have traveled and we are all aware that it is an expensive place to shop, park and fly. It has also been a great investment for long term shareholders since it listed nearly 13 years ago.

Over the last few years though the company has stalled in profit growth due to a downturn in world travel and some high expense capital requirements to modernise and expand the business.

It looks set for some good gains over the next few years however and announced on February 24 its 2011 half year result which comfortably beat last years.

AIA has been headed by Simon Moutter since 2008 but he is a relatively low profile individual.

What do we know of his plans for the Airport he heads, where does he intend to take the company into the future and what makes this CEO tick?

With that in mind I thought I would like my readers would like to find out more about Simon in another Share Investor Q & A.

The Q & A was conducted by Email with questions submitted and returned using this method so no counter questions were put. This method is used by me because I do not have the time to sit down and do a face to face.



The Q & A

Share Investor - Your 2011 half year result of $61.536 million was up 14% on overall revenue up 8.7%, compared to the 2010 half result. What contributed to these profit levels and in comparison to last year how do you feel the company has performed considering the overall global economy and its impact on tourism and travel?
Simon Moutter - We thought it was a great result, and it was great to break out of a six year flat spot in terms of profit.

Our half year profit indicates that our “Flight-path for Growth” strategy, that has repositioned the business to be sales-led rather than infrastructure led, is beginning to pay off.

Our biggest value driver is growing international passenger volumes and our investment in air services development and route development activity is underpinning this growth. We’re particularly focused on the fast growing outbound tourist markets of Asia and in the half year, with arrivals from Asia increased 20% over the previous corresponding period.

We have also invested heavily in those aspects of our businesses, such as retail and property, which leverage commercial opportunities arising from growth in air services and passenger volumes.

Retail revenue increased in the period by 12.9%, up to $54.809 million, and was probably main driver behind the half-year performance. We’ve just completed a major revamp of our international departures retail area and our two duty free operators are performing strongly.

We’ve also focused on keeping tight control of our operating costs, so that we improve our operating leverage – ensuring that as much as possible of every extra dollar of revenue flows through into our bottom line.

SI - How does AIA manage to keep on its toes competitively when in essence it has little competition from other airports in New Zealand - what keeps you honest in other words?

SM - We compete every day for a ‘share of wallet’ in terms of consumer spending so we see ourselves now as being more commercially competitive than ever before across all categories. We also compete as a destination for the attention of new airlines, new routes and expanded air services. For every new or spare aircraft that an airline has available, there are many choices of routes which it can be assigned to. We’ve got to sell New Zealand as a destination and business opportunity for airlines to succeed and Auckland Airport as a solution to this business opportunity. We work with each airline on a compelling business case, often backed by promotional support, to get them to fly here.

Competition in other parts of our business, such as carparking and commercial property, is very intensive. We have set ourselves some very aggressive growth goals for volumes and financial performance across all aspects of our business. We are also focused on giving airlines and travellers a world-class airport experience (we’ve been voted a world top 10 airport buy travellers two years running). To achieve any of these goals, we must keep ourselves nimble and hungry.

SI - Looking towards 2012 do you think you will be able to beat the 2011 result and if not why not?

SM - That’s our plan, but we do face some genuine unknowns (e.g. the impact of rising fuel-prices and the Christchurch earthquake on travel and tourism demand).

The focus of the world on New Zealand during the RWC will provide a boost to passenger numbers at that time which we aim to ensure provides the opportunity to lift tourism growth rates for the years following the RWC event.

Certainly we have generated good operating leverage, and if passenger volumes continue to rise we expect a good 2012 result.

Reader Question - Why does AIA give discounted landing fees and preferential treatment to every other airline that wants to start a new route (Continental, JetStar International, China Southern etc) bar your biggest customer, Air NZ?

Surely a strong and growing Air NZ is in the long term best interest of AIA?

SM - We’re prepared to offer promotional support to any airline – including Air New Zealand – that wants to open new or expanded air-services. For example, we recently announced a joint venture arrangement with Air New Zealand to market their Japanese air services.

A strong national carrier is very important, but when it comes to growth in air-links NZ Inc shouldn’t expect Air New Zealand alone to carry the weight of New Zealand’s tourism and trade aspirations. While, Air NZ is our biggest international customer, it currently carries about 35% of international traffic to/from Auckland- that means two-thirds is carried on one of two dozen or so other airlines flying in Auckland. A lot of these airlines are fast expanding and have strong links with growth markets in Asia, so it’s important we work with them and with Air New Zealand for the benefit of our own business and for New Zealand overall.

SI - What are your medium to long-term growth plans (5-10 years) in terms of company size and revenue growth and mix of revenue streams?

SM - Our vision is to build a great New Zealand business recognised as a world-leader in creating value from modern airports.

We want to use our expanded airport footprint (Auckland, Queenstown, Cairns and Mackay in north Queensland) to leverage higher passenger volume growth.

We aim to keep growing air-services and tourism into New Zealand at faster than the market organic rate (in other words, the growth we could expect under a more passive marketing approach).

Expect us to continue to diversify our revenue streams, by expanding and actively marketing the range of products and services that benefit passengers. And we will continue to drive property development strategies to create more value in our land holdings.

SI - What sort of positive impact do you expect from the 2011 Rugby World Cup in terms of numbers through the port and increases in revenue?

SM - The biggest opportunity is to use RWC to build stronger destination preference among potential visitors in the coming years. What we all hope is that NZ gains more repeat business and more positive referrals subsequent to the RWC.

In terms of passenger volumes, the RWC will be little different to our usual summer peak, however it does give us a second peak for the year which will give our annual numbers a boost.

SI - The Christchurch Earthquake will surely impact upon the Airport directly through less travel being done by Cantabrians coming through your doors and indirectly from an impact on the rest of us because of the cost of the quake and its impact on the economy. Couple this with the global economic fallout from the Middle East, they could be a throttle on short to medium term growth. How will you handle what could be a serious slowdown from these two macro events?

SM - We’re definitely sounding a note of caution on these two events.

The Christchurch earthquake is definitely a tragic and significant event that may possibly have a negative halo effect on NZ tourism in general in terms of reducing travel demand, however it’s important to note that NZ tourism will continue (and is continuing) and that everyone within the industry has a collective incentive to help the Christchurch tourism industry recover.

As a colleague airport we have a lot in common and we are doing what we can to help them.

Working in conjunction with Tourism NZ, regional tourism organisations, airline and travel trade partners, we’re going to put a lot of resource into stimulating travel back into the South Island and the Canterbury region to mitigate against the risk.

The impact of higher fuel prices is hard for us to predict or mitigate. But it strengthens our focus on maintaining tight controls on capital expenditure and operating costs, to ensure our cost structures don’t get ahead of demand.

SI - On the recent acquisitions you have made in Australia and Queenstown. Do you expect AIA to move to diversify further in this respect in the future with other Airport purchases and partnerships with Airports and how important is this strategic move for the company in the medium to long-term?

SM - Our two investments in Queenstown and North Queensland have given us a lot of upside potential, and I think the performance to date of our airport investments is vindicating our strategy. But we don’t have anything else on the radar at this stage.

SI - On the purchase of a stake in Queenstown Airport late last year. Please explain, from your point of view, why there has been so much opposition from some quarters down in Queenstown and specifically from Air New Zealand?


SM - This power in the constitution was used exactly as designed – to allow the Board to exercise commercial judgement in the best interests of the airport and the community. This is consistent with good corporate governance, which involves having clear rules that delineate the respective roles of shareholders, directors and managers. In contrast, opponents of the deal believe that the Board should have passed the process over to the Council, which would then have undertaken community consultation before making a decision. As would any business, we preferred the certainty achieved through the deal we negotiated with the Board.
We’re now focused on demonstrating to the Council and the Queenstown Lakes community that we are a good shareholder who is making a real, positive contribution to Queenstown Airport and to the regional economy. Our status as NZ’s pre-eminent international airport and our relationships with many of the world’s top airlines mean we can offer value to Queenstown that no other partner can. Regarding Air New Zealand, I must admit I’ve struggled to understand their opposition. I note they have publicly stated a desire to own a shareholding in Queenstown Airport themselves, so perhaps this is behind their stance. Air New Zealand has claimed our investment will push up airport prices at Queenstown, but I believe this is a red herring as Auckland Airport's current charges to airlines are, on average, lower than Queenstown Airport's. This opposition to an alliance also seems at odds with their own desire to form a similar sort of alliance with Virgin Blue.

SI - Would you consider a strategic or financial alliance -another port taking a stake in AIA - with a larger airport to leverage business in the same way you have done with the smaller ports you have purchased?

SM - Well, shareholders decide who owns the company in terms of ability to buy or sell shares. With regards to an alliance with a larger airport, we’re not actively pursuing anything like this right now. As with any investment or alliance, we would want to be satisfied that any deal enables us to leverage our core competencies better and enhances shareholder value. Those have certainly been key drivers behind our investments in Queenstown and North Queensland.

SI - There has been a history of animosity coming from Air New Zealand, especially in terms of the business relationship between AIA & AIR. Is this a symptom of AIA being your biggest customer in terms of aircraft movements or are there other reasons for this?

SM - We shouldn’t overdramatise this issue. Air New Zealand is indeed our largest single airline customer and we both have important roles to play in supporting trade and tourism growth, for the benefit of NZ Inc.

We are continually co-operating with Air NZ on many things – just recently, for instance, we announced a joint marketing campaign related to Air NZ’s expanded Japan services, and their recent expanded China services. And we’ve been a big supporter of Air NZ’s drive to revamp check-in processes on domestic and trans-tasman flights by using computer kiosks.

There will always be areas of commercial tension between airports and airlines. This commercial tension is the same around the world. A lot of this relates to pricing as a lot of airport revenue represents a cost to airline customers. Strategically, our paths can also differ. Airports are commercially incentivised to increase passenger volumes, including through the introduction of new airlines. Not surprisingly, incumbent airlines aren’t that keen on increased competition. This can also create business tension – that’s just a fact of life.

SI - With China Airlines expanding into New Zealand through AIA how much scope for growth do you see for this link and others in the Asia region and specifically China?

SM - We’ve recently attracted two new Asian airlines: China Airlines out of Taiwan, and China Southern Airlines that will be flying non-stop to Auckland from Guangzhou in southern China. Air New Zealand has also announced increased frequencies from Shanghai and Beijing.

Mainland China represents the fastest growing travel market in the world. Already, China has grown to be New Zealand’s fourth largest visitor market (behind Australia, United Kingdom and United States) and the market has enormous potential.

For instance, China Southern recently indicated it will spend around $10 million to promote its new route. We are working with them to maximise this marketing spend, showcasing some of NZ’s best tourism destinations.

Our aeronautical business development team is working overtime with the respective airlines to ensure all these routes are successful and encourage these and other airlines to grow the market further.

If we are able to increase our natural market share of China and other higher growth Asian markets by a factor of 2 or 3 that will make a huge difference to NZ tourism.

SI - How crucial is the undeveloped land in around the port that the Airport owns and can develop, itself or with partners, for future revenue streams?

SM - We’ve made exceptional progress in a relatively short time with our property portfolio. We’ve currently got 2 hotels under construction and a number of commercial/retail developments – given the current state of the property market in general, this is an impressive achievement.

We’ve also launched a property strategy that has segmented our land holdings into precincts for different types of use (offices, warehousing and logistics, entertainment, retail and educations etc) to maximise value. Given the extent of our land holdings, this is a long term plan which will take years to fully execute.

In the medium term, our aspirational target is to grow property segment reviews from $30m in FY09 to $50-$60m by FY14. That’s a big ask but we made a strong start and we aim to gain traction as the property market recovers.

Reader Question - Is there scope for a higher proportion of retail at AIA?

SM - To an extent, growth in our retail business is linked to growth in passenger volumes. As this growth also increases our overall revenue through higher aeronautical income, there’s unlikely to be a drastic change in retail as a proportion of our overall revenue at least in the short term.

That said, we are very focused on improving the yield from our retail operations, in terms of the income we gain from each passenger travelling through the airport. This is all about having the right mix of retail offerings to attract travellers and encourage them to spend more time in our airport stores. New tenants in the last six months include Icebreaker, Moet, Apple, Swatch, MAC cosmetics and a Rugby World Cup store.

SI - What percentage of net profit is contributed by property/retail now and what do you envisage it to be in the long-term vs profit from aeronautical and associated businesses?

SM - Non-aeronautical businesses (mostly retail, property, carparking) currently represent around just over half of our income.

Although our non-aero businesses are influenced by passenger volumes, we obviously want them to grow at a faster rate than this if possible. We’re particularly focused on improving yield in our retail business, and accelerating our property development activities.

We’re also mindful that our aero business is now regulated under the Commerce Act, so we have a greater incentive to grow our other businesses which all operate in competitive commercial environments.

All this means I would expect our non-aero businesses to be bigger contributors proportionately over time – but I’m not going to put a percentage figure on that.

Reader Question - How much revenue will the new hotel being built onsite provide for AIA?

SM - This is a private commercial venture with ourselves as a 20% stakeholder, so we are unable to disclose all the numbers on the arrangement, however I can say that the ground-rent is based on a participatory lease so if the hotel goes well, we gain a benefit, and we will also recover some spin-off from the hotel through parking, dining etc.

SI - How does AIA compare against other airports in this part of the world in terms of efficiency and competitiveness for business?

SM - What is really great is that we have been voted as one of the 10 best airports in the world, two years in a row. Nearest competitor in Australia Pacific is Brisbane at 18.

Given the regulatory and commercial debate that centres on aeronautical charges, we were keen to get a realistic and professional assessment of how our charges compare with other airports that are relevant to our market, so we recently commissioned two reports.

The first report, by international aviation consultants, Jacobs, was conducted in September 2010 and reviewed our international charges. According to Jacobs, our international aeronautical charges are “middle of the pack”, just below the average of the 20 airports serviced by Air New Zealand that handle more than 500,000 international passengers a year.

The second report, by Australasian aviation consultants, Airbiz, was conducted in August 2010 and reviewed our domestic charges. It found our domestic charges are among the lowest in Australasia. We are proud that while charging competitive rates, we provide a passenger service level which has seen us named one of the world‟s top 10 airports for two years running. We are also continuing to invest in the infrastructure capacity needed to accommodate ambitious tourism and trade growth targets.

Reader Question - Simon, when will we see a second runway, how will that be funded when it does happen and what additional infrastructure in terms of new terminals and retail would you envisage would be needed with this addition?

SM - As we announced in July 2010, we’ve deferred construction of the second runway for several more years. This was a pragmatic and sensible decision after we worked out that we could get a few more years’ growth out of the existing runway by working with our airline customers to be smarter about runway capacity management. The airlines are all for this as ultimately they would bear much of the cost of the new runway through landing fees.

We’re also very mindful that to make best use of the second runway, we will need to reconfigure our existing terminals. In essence, the current domestic terminal location next to the existing southern runway would probably need to be moved north, between the two runways. Our masterplan envisages an integrated terminal complex by expanding the international terminal to the north. Both the second runway and any new terminal developments would be large investments in infrastructure that would require commercial outcomes that create value for our customers by providing efficiencies to airlines, improving the quality of the passenger experience as well as providing a fair return to Auckland Airport.

SI - I had a question from a reader that contains expletives deleted regarding a poor response to a complaint from him. Everyone has a story to tell about an experience at the Airport, I know I do, and this person says he didn't get a satisfactory response to his complaint or subsequent replies to comments posted on a feedback form. What is your response to these kind of complaints, how are they generally handled and how important is achieving a resolution so airport visitors don't get the feeling they just making the airport a "grudge" destination rather than a place you would want to come back to because of good service?

SM - Sorry to hear that. Like any business, we’re well aware of the potential damage someone’s poor experience can have on our reputation and we take complaint resolution seriously. It’s hard to comment on the specifics of this particular incident without knowing more about it, however we do have a robust feedback process and we do actively encourage passengers to use that process – feedback is an essential aspect of improving the way we do things.

We are very focused on improving the passenger experience. As well as anecdotal responses, we track passenger feedback through formal surveys and research. These included participating in a global service monitor that Airports Council International undertakes on a quarterly basis. We are also proud of our achievements in the annual Skytrax global traveller survey, in which we have been voted as one of the world’s top 10 airports for the past two years.

SI - Is a light rail line important at all in terms of significant passenger numbers to the airport and is the airport up for any financial input should the line be built?

SM - We’ve made it clear that we want improved public transport links between the airport and all parts of Auckland. This is important for not only for airport travellers, but for the thousands of people who work within the Airport Business District. We recently commissioned an economic study which estimated employment in and around the airport would grow from 21,000 currently to as much as 38,000 by 2031.

We’re participating with Auckland Transport, Auckland Council, NZ Transport Agency and Kiwirail on a joint study into preferred routes for rapid transit and state highway links to the airport. The first stage of the study will be funded by NZTA.We’re a long way from determining how any new links will be funded. And we’re leaving it to the public transport experts to work out how rail might be part of the solution.
SI - What kind of profit margins are you achieving and can the company do better?

SM - For a business that invests heavily in infrastructure to earn a return on this investment margins can be misleading if misinterpreted. After adjusting for one-off items and non-cash fair value changes, our underlying profit in FY10 was $105m, whicih works out at a 29% margin on income. We improved this margin slightly to 30.5% in the first half of FY11. While we always aim to do better, the biggest rewards in terms of shareholder returns will come from growing our overall business volumes. That’s why we have placed so much focus on strengthening air links and increasing passenger volumes from high growth regions such as Asia.

SI - Are you happy with the large 22.5% stake that Auckland City has in AIA and how much influence will that shareholding have on the direction of the company with a change in council policy last year to allow the council to buy more shares in AIA rather than maintain their current stake?

SM - The relationship between Auckland Airport and our largest shareholder remains very positive and constructive. We actively engage across many levels with Auckland Council on a wide range of issues, including community, investment, the visitor economy, economic growth, international relations, transport, environmental and spatial-planning matters.

There hasn’t been any change in Council policy regarding the shareholding – the policy you refer to is in effect a rollover of the previous policies adopted by Auckland City Council and Manukau City Council, prior to the supercity amalgamation.

It’s a good structure with a commercially governed holding company, ACIL, which provides a sound basis for the shareholder ownership and relationship.

Post interview note on this question - I wrote a piece about this earlier this year that indicates there has been a change to this policy which allows the new council to buy more shares in AIA. This allowance did not feature in the old policy and the main point is outlined here:

"I must point out though that the following part of the Oct 2010 policy, which has changed from the 2007 version, is the significant part of the story though:

The previous policy did not allow the council to buy shares or other securities in Auckland International Airport Ltd outside of a restructuring transaction. The council believes there are a few other scenarios where buying additional shares in the airport would be prudent and having the flexibility to do so, should such a scenario arise, would be beneficial.

Consequently, the policy on Auckland Airport shares, has been changed to enable the purchase of more shares in the airport subject to council approval, following rigorous analysis against the objectives and criteria outlined in the policy".

SI - What are some of your business and management principles and what strategic planning method do you adhere to?

SM - I have a really simple approach; I’m an advocate of Graeme Hart’s ‘suc-dri’ formula. I tend to figure out the businesses value drivers on this basis, and then invest in the right people and capability to make a difference to the outcomes of those value drivers. The aim is to generate long-term superior shareholder returns and value. To this end, getting it right for customers is critical.

SI - In my investing experience I have found the level of business leadership in New Zealand wanting – with a few very notable exceptions - when it comes to making good long-term decisions based on sound business skills, the basic understanding of running a business and accountability when it comes to making mistakes and this is often reflected in businesses hiring from an overseas talent pool. What are your views on how we can get good shareholder representation in the boardroom?

SM - Being a director of a public listed company these days is a tough ask. In recent years the governance responsibilities have become even more challenging, not to mention the legal liabilities that can come with a directorship.

I think a critical factor for a successful Board is having the appropriate blend of skills, knowledge and experience that is relevant to the business. Diversity is vital – it leads to vigorous discussion around the Board table. There’s no value having a Board where everyone comes from similar backgrounds as they tend to end up thinking the same way.

We’re fortunate to have a great mix on our Board. Individual directors bring experience from a range of relevant business areas, including aviation, infrastructure, property and financial markets. They represent a good cross section of NZ Inc. And they share a common passion for the airport business, recognising our important economic role.

SI - What company or companies do you admire the most (apart from AIA) that you don't have a financial interest in and why?

SM - I really admire Apple – I admire their long-term value and vision, and their incredible ability to innovate through simplicity. They are an incredible example of less is more.

SI - I have read Benjamin Graham's Security Analysis and find it crucial to long-term investing not just in the stockmarket but for investing in general. Have you read it and if you have what have you taken from it as its main points?

SM - No – sorry I haven’t read it Darren.

SI - Who are some of your business mentors/heroes and why?

SM - Again sorry – I really don’t think about heroes – I’ve tried to learn from every business person I’ve ever dealt with, some more than others, and I try and maintain that focus on always learning from good people. I’ve learnt that the ‘hero’ model of leadership has its flaws.

SI - What do you see as the strongest and weakest quality of your leadership style?

SM - I think one of my strengths is my willingness to search for and identify the big organisational aspirations and then organise the resources and people to go for them. Weaknesses? –well, I’m probably not the best listener on the planet.


SI - Where do you see yourself and the business you lead over the next five years?

SM - It would be fantastic to see Auckland Airport recognised as a great NZ business success story, and I’d be really happy if I could play a part in that.

END



About Simon Moutter - From NZ Herald

Qualifications:

B.Sc. Bachelor of Science (Physics)

Massey University

B.E. (Hons) Bachelor of Engineering with Honours (Electrical and Electronics)

University of Canterbury

M.E. Master of Engineering (Electrical and Electronics)

University of Canterbury

Significant Career Achievements

Steered Telecom's entry into the IT market to become the first Telco in the world to gain number one market share position in IT services and steered the resurgence of Telecom's struggling mobile business in 2003 – returning it to return to market share growth for the subsequent three years.

Appointed to head up Telecom's New Zealand Business in 2002, a career goal many years in the making, then completed the shift from infrastructure leadership roles to sales, service and marketing leadership.

Completed the corporatisation, expansion and re-positioning of a small, ex-Municipal Electricity Department and built it into a very successful, Top 4 Energy Distribution Company operating in the deregulated market in New Zealand.

Youngest ever Manager (at that time) of a major power station in New Zealand.

Successful establishment of an Engineering Consulting and Contracting business with a $ million fee base whilst a young Graduate Engineer.

Six publications in internationally recognised technical journals.

Awards

1986 Fulton-Downer Gold Medal, the Institution of Professional Engineers premier award, for best paper presented at conference.

1989 Evan Parry Award for best electrical engineering publication in IPENZ Transactions.

Career Summary

2009 - 2012: member of the New Zealand Racing Board

2008 - current: CEO, Auckland International Airport

2006 - Recent: Chief Operating Officer (Business) – Telecom NZ Ltd

2002 - 2006: Chief Operating Officer – Telecom NZ Ltd

2000 - 2002: Group General Manager Network & International – Telecom NZ Ltd

1999 - 2000: General Manager Network Delivery – Telecom NZ Ltd

1992 - 1999: Chief Executive – Powerco Ltd

1991 - 1992: Station Manager – New Plymouth Power Station

1987 - 1990: MD / Owner – Electrotech Consultants Ltd

1983 - 1987: Electrical Engineer, Electricity Division – NZ Ministry of Energy

About Auckland Airport - From AIA Website & ASB data
Auckland Airport is the major connection between the world and New Zealand.
It is where New Zealand touches the world - welcoming visitors and farewelling friends.
Auckland International Airport Limited (Auckland Airport) was formed in 1988, when the New Zealand Government corporatised the management of Auckland International Airport. In 1998, the Government sold down its shareholding, and Auckland Airport became the fifth airport company in the world to be publicly listed.
Today, Auckland Airport has been voted as one of the 10 best airports in the world two years in a row, and is a major driver of the economy. Auckland Airport generates billions of dollars for the economy, creating thousands of jobs, and making a vital contribution to New Zealand trade and tourism by strengthening connections with the world.
Over 70 per cent of visitors enter or leave New Zealand via Auckland Airport, which handles over 13 million passengers a year. More than 20 international airlines serve Auckland Airport, Australasia’s second busiest international airport, after Sydney.
As New Zealand's major transport hub, Auckland Airport is investing in an airport and traveller experience that all New Zealanders can be proud of.
Auckland Airport is continually developing the capacity and services to ensure it will sustainably cope with an anticipated 24 million passengers a year by 2025, reflecting New Zealand’s growing popularity as one of the world’s leading tourism destinations.
The airport also owns 1500 hectares of land presenting it with a huge opportunity for commercial and retail property development.
Where & What

Sector	Transportation
Registered office	Jean Batten International Terminal, Auckland International Airport, Manukau, New Zealand, New Zealand, 2022
Postal address	PO Box 73-020, Auckland International Airport, New Zealand, New Zealand, 2150
Telephone	+64 9 275 0789
Website	www.aucklandairport.co.nz
First listed	22/02/1999
Directors:	Mr Hugh Richmond Lloyd Morrison, Mr John Alston Brabazon
Chairman	Tony Frankham
Managing director	Simon Moutter,
Auditors	Deloitte
Bankers	ANZ National Bank
Registry:	Link Market Services, Level 16, Brookfields House, 19 Victoria St West, Auckland, New Zealand, New Zealand, 1010, PO Box 91976, Auckland, 1142
Telephone	+64 9 375 5998
Facsimile	+64 9 375 5990
Website	www.linkmarketservices.com

Current Board

Joan Withers MBA, AFinstD

Joan was appointed a director of the company in 1997 and became Chair on 28 October 2010. She has spent over 25 years working in the media industry holding CEO positions in both newspaper and radio, and has been a professional director for 11 years. In July 2005, Joan became chief executive officer of Fairfax New Zealand Limited, New Zealand’s largest media company, a role from which she retired on 30 June 2009. Joan is also chair of Mighty River Power Limited, deputy chair of TVNZ Limited, and a trustee of The Tindall Foundation and Sweet Louise.

Keith Turner BE (Hons), ME, PhD, FIEE, FIPENZ, FNZM

Keith Turner was appointed a Director of the Company in 2004. He has 39 years’ experience in the New Zealand electricity industry, the last 21 years of which have been spent in senior executive positions. He has undertaken widespread participation in reform of the industry, both in industry review teams and acting for the Government on a range of industry boards. In 1999 he took up the position of Chief Executive of Meridian Energy following the breakup of ECNZ, a role he retired from on 31 March 2008. He now holds a number of small and large board positions, and undertakes executive coaching and international consulting activities.

John Brabazon BCom (Auck)

John Brabazon was appointed a director of the company in 2007, and is a member of the Audit & Risk Committee, and Takeovers Committee. He is an executive director of boutique Merchant Bankers DBB Capital Limited and has over 25 years experience in the capital markets, including eight years with Brierley Investments Limited. His other directorships include Kern River Oil Corporation in the United States and The New Zealand Wine Fund Limited. His former directorships include 13 years in aggregate spent on the board of six companies with total assets exceeding NZ$1.6 billion. He is a member of the New Zealand Institute of Chartered Accountants, an Accredited Director of the Institute of Directors in NZ Inc, and a Fellow of the Financial Services Institute of Australasia.

Richard Didsbury BE (Auck)

Richard was appointed a director of the company in November 2007. He graduated in Engineering from The University of Auckland. He was a co-founder of the Kiwi Income Property Trust in 1992 which is now the largest property vehicle listed on the NZX, and he remains a director of that company. Within KIPT, he led the Sylvia Park project team which successfully completed New Zealand's biggest retail development. Richard offers complementary skills to the board of Auckland Airport, particularly his extensive property development expertise which, together with his experience of transportation issues gained during his time on the board of Infrastructure Auckland, will be of value to the company as it deals with the future issues of land access to and from Mangere.

Lloyd Morrison LLB (Hons)

Lloyd was appointed a director of the company in November 2007. He is one of New Zealand's most experienced infrastructure investors and managers. He founded NZX-listed Infratil in 1994 to invest in infrastructure companies in New Zealand and internationally. Infratil has been one of the NZX’s top-performing companies since its formation, and today owns businesses in the airport, renewable generation, energy retailing, waste to energy and public transport sectors. Lloyd is managing director of Infratil, chairman of HRL Morrison & Co which, in addition to Infratil, manages infrastructure investments for the New Zealand Superannuation Fund, chairman of Infratil Airports Europe and a director of TrustPower. In respect of airport companies, he has board experience with airport companies in New Zealand, Australia, USA, UK and Continental Europe.

Sir Henry van der Heyden KNZM, BE (Hons)

Sir Henry van der Heyden was appointed a director of Auckland Airport in September 2009. He has been Chairman of Fonterra Co-operative Group since September 2002. As a founding Director of the Co-operative he has contributed to industry governance for nearly 20 years, both as a Director and Chairman. This included leading New Zealand Dairy Group through the process which ultimately saw Fonterra formed in 2001 and subsequent innovations in governance such as the formation of a Shareholders Council. Awarded New Zealand Herald Business Person of the Year in 2007, Sir Henry was honoured with a Distinguished Companion of the New Zealand Order of Merit in 2009 in recognition of his extensive services to agriculture. In addition to directing family interests in dairy farming in the Waikato and Chile, Sir Henry is a Director of King St Advertising, Independent Egg Producers, Northern Feedmills, Elevation Capital and Manuka SA. He is a member of Rabobank’s Food Agribusiness Advisory Board of Australia.

James Miller BCom, FCA

James Miller was appointed to the Auckland Airport board in September 2009. Mr Miller has spent 14 years working in the share broking industry. During this time he has specialized in the strategy and valuation of airport and utility companies. Specifically, Mr Miller had a leading role in the valuation and global pre marketing of the Auckland International Airport, Beijing Capital International Airport, Contact Energy, and Vector initial public offers. Mr Miller is a qualified chartered accountant and is a Fellow of the Institute of Chartered Accountants of New Zealand, a Certified Securities Analyst Professional, a Member of the New Zealand Stock Exchange, a Member of the Institute of Directors and is a graduate of The Advanced Management Program, Harvard Business School (USA). Mr Miller is a director of Vector and Craig’s Investment Partners. He was previously on the ABN AMRO Securities Board, INFINZ Board, and Financial Reporting Standards Board.

Brett Godfrey

Brett Godfrey has had a 20 year career in aviation, initially holding finance positions in small airlines, then moving to flag carriers and culminating in establishing and leading the Virgin Blue Airlines Group. Brett conceptualised, established and led Virgin Blue, Australia’s second largest airline, as Chief Executive for its first 10 years. Under Brett’s leadership, Virgin Blue successfully navigated through such hazards as 9/11, the Bali bombings and more recently the GFC. Now, in the year of his stepping down, the Group employs 6,000 people, operates four airlines, including new long haul premium carrier V Australia, all up carrying 20,000,000 ‘guests’ per annum. Brett and his team have changed the face of aviation in Virgin Blue’s region and in so doing made air travel accessible to a great many more people. Brett has been awarded the Australian Centenary Medal for his service to Tourism and Aviation, was recognised as the Australian Chief Executive of the Year by the Institute Of Customer Service, and the Outstanding Chartered Accountant in Business, by the Australian Institute of Chartered Accountants.

Disclosure: I own AIA shares in the Share Investor Portfolio


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