Introduction Neil Thompson mpson Chief Financial Officer, MAG - PowerPoint PPT Presentation

Introduction Neil Thompson mpson Chief Financial Officer, MAG Andr drew ew Cowan an Chief Executive Officer, Manchester Airport 2

Contents  FY19 H H1 H Highlight ights  Passe seng nger er Growth h & Co Commerc rcial ial Developm pmen ent  Tradi ding ng Perfor ormanc mance  Capital al Invest stme ment nt  Financing ncing  CSR CSR 3

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FY19 H1 Highlights Anoth ther good half year for MAG with soli lid year r on year performa ormance ce and continu inued investment tment across ss the Group p to suppo port rt long-te term rm growth th Continued strong growth carrying 35.7million passengers in YTD (+1.3m, +3.8%). MAG delivers above market annual pax growth of 2.0m (+3.5%) year on year. Key driver being STN airport, with MAN impacted by timing of Monarch backfill. EBITDA up £8.8m (+3.7%) on prior year. Monarch combined with air traffic control and pilot strikes impacted UK aviation and were a 3% drag on EBITDA growth. Routes continue to increase with our airports now serving 280+ destinations around the world. WOW Airlines, Air Corsica, Pobeda and Montenegro Airlines all operating new services from MAG airports. New STN facilities capex plan accelerated due to outperformance of growth plans and an opportunity to bring forward operational and commercial benefits from investment. Secured permission to grow to up to 43 million passengers p.a. MAN TP investment programme is a year in to construction and on target cost and schedule. Strong long-term funding platform - £175m of £350m new shareholder loans drawn during H1. The second tranche will be drawn in December 2018. MAG-O - our technology and e-commerce business continues to develop and drive improvements in airport experience and MAGs digital footprint. Well positioned for continued growth – aviation pipeline, spare runway capacity, focussed MAN & STN investment. 5

FY19 H1 Financial Highlights The continuing success of MAG’s commercial and operational strategy is reflected in a 3.8% year on year increase in passenger senger numbe bers rs and a 3.7% incre reas ase in EBITD TDA Group up Pax: 35.7 .7m m (+3.8 .8%) %) EBITD TDA: £244.5 .5m m (+3.7 .7%) %) Commercial strategy driving Strong EBITDA growth record passenger numbers ahead of plan and growth. MAN Pax: : 16. 6.6m 6m (0%) %) Cash genera erate ted from operations ations: : £246.3 .3m m MAN passengers flat (+31.0 .0%) %) despite Monarch and air Strong cash generation to support traffic impacts investment STN Pax: 15.9 .9m m (+8.9 .9%) %) Capital tal Inves estm tment ent: : £277.5 .5m m (+117%) %) STN growing faster than LHR and LGW. Transformation plans on budget and time Leverage: age: 3.1 .1x (+0.4 .4x) EMA Pax: : 3.2 .2m (0%) %) Important dual role for Conservative financial leverage with 2.9x headroom passengers and cargo Source: MAHL FY19 H1 Interim Report & Accounts Note: For a reconciliation between MAHL and MAGIL FY19 Interim Results see Appendix on Page 29 6

Brexit Brexit it consens sensus s forecas casts ts indica icate te slow ow-dow down in growt wth. MAG's 's Financial cial strateg ategy y mean ans s strong g finan ancial cial position ition to deal with the potential tial impact acts of Brexit  Strong Financial Position: Airport Businesses in strong positions:  financial performance ahead of five-year plan and strong growth  in its core businesses; Strength in low cost carrier base   capex programme that can be flexed to economic conditions; Manchester:  Operates as northern hub – strong  low leverage and debt levels compared to its higher medium- catchment area and good geographical term optimal levels; location for airlines.  commitment to two strong BBB+ ratings enabling efficient capital  Stansted: market access;  LHR/LGW will operate at full capacity in the  core long-term bond financing of £1,110m; and availability of a £500m five-year bank facility. 10-15 years before a runway is built at LHR  Both UK and EU have set out robust contingency plans for aviation in  35% inbound traffic benefit from FX rates. the event of ‘no deal’.  The UK/EU political declaration commits the parties to developing a Comprehensive Air Transport Agreement covering market access, investment, safety and security and provisions to ensure open and fair competition. Nine bilateral ‘open skies’ deals already agreed, including with US.  Latest set of results and our contingency planning demonstrates resilience to economic and political uncertainty.  If deal is agreed, status quo for 2 year transition period to Dec 2020 7

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Above-Market Growth & Rising 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 rising ing market t share (21.2% 2% of UK market t reflectin ting g +0.3% % increas ase on prior r year market t share) MAG AG has s the fast stest est growin owing g London on airport ort in term rms of pass sseng enger er growt wth. h. With th STN out perform orming ng both h LGW and LHR R despite te air tr traffic contr ntrol ol and pilot ot strikes. es. MAN AN growth owth impac acted ted by timing ng of Monarc narch h backfill. STN 8.9% LCY 8.3% LTN 3.3% LHR 2.4% LGW 0.4% MAN 0.0% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Growth on PAX for r Apri ril to Septemb mber r 2018 against prior r year r (%) Source: CAA – September 2018 / company websites / Management Information 9

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 over r 280 route tes. s. Capacity city is growi wing g togeth ther with th introduc oductio tion of new routes Europe pe • Jet2 increase to 9 based aircraft Middl dle East t / Asia ia North Americ ica Africa ica at STN, along with a host of new routes; frequency and • • • New Emirates service from STN, New Thom omas as Cook k service from New Thomas Cook k service from capacity growth at MAN • operating daily to Dubai, MAN to Seattle commenced in EMA to Hurghada started in easyJe Jet to add 2 based aircraft commenced in Summer ‘18 Summer ’18 February ’18 at MAN and several new routes • • • New Jet Airwa ways ys weekly kly service from WOW Air began flights to easyJe Jet launch Hurghada from Winter ‘18 • MAN launched in Winter ’18, with 5 numerous US destinations from services from STN in November Ryanair ir increased based fleet at weekly flights to Mumbai STN via Reykjavik hub in Summer ‘18 MAN by 3 aircraft as well as a • • ’18 New El Al service from Tel Aviv to New Ethiop iopia ian Airli lines service number of new destinations • • MAN to commence in Summer ’19 Virgin gin Atlantic ic to launch Los from Manchester to Addis Ababa New airli lines to MAG – • Angeles services in Summer ‘19 from Winter ’18 easyJe Jet launched twice-weekly Tel Wideroe, Laudamotion, Air as part of a c.20% increase in Aviv services from STN in Winter ’18, Corsica, Pobeda and peak summer capacity whilst Arkia will now operate the Montenegro Airlines operating route year-round new services from STN Source: Management Information 10

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FY19 H1 EBITDA Robus ust t trading ing perform rmance nce across oss the Group. MAG EBITD TDA has incre reased ased by £8.8m 8m (+3.7%) 7%) year on year. Monarch rch and air traffic fic contr trol ol and pilot t strik ikes caused sed a c.3% drag on year on year EBITDA growth th, main inly ly at MAN. EBIT ITDA DA (£ million) on) 250 £244.5 million Total £235.7 million MAG +£8.8m m (+3.7%) 200 MAN 121.1 +£3.0m 118.1 (+2.5%) 150 STN +£11.4m (+12.4%) 100 92.1 103.5 50 EMA, Pruoerty & Other +£6.6m 25.5 (+28.1%) 19.9 0 FY18 H1 FY19 H1 Note: For a reconciliation between MAHL and MAGIL FY19 Interim Results see Appendix on Page 29 Source: MAHL FY19 H1 Interim Report & Accounts 12