Auckland International Airport Limited (AIA) Earnings Call Transcript & Summary

Good morning, everybody. I'm Julia Hoare. I am Chair of Auckland Airport, and it's my really big pleasure to welcome you here today. And thank you for joining us at today's 2026 Annual Meeting, whether or not you're here in the room here or whether you're taking part in the live stream. 60 years ago, Auckland Airport opened its doors and changed the way that New Zealand connects to the world. As we mark this milestone, it's a real privilege to welcome you. With us today are my fellow directors, and I'll ask them to put their hands up. I've got Mark Binns, Tania Simpson, Dean Hamilton, Liz Savage, Mark Cairns and Grant Devonport, along with Sean Donohue here, who's been nominated by the Board and is up for his first election here today. And Sean will address the meeting prior to the vote today. I'll also address you on my reelection as a director today and also by extension, my role as Chair for up to the next 3 years. Our Chief Executive, Carrie Hurihanganui, who's here, will also address the meeting today. And with her, we've got our CFO, Stewart Reynolds, who's down here. And other members of the leadership team who are here below as well as our auditors. So thank you for joining us. As we've got a quorum of shareholders, I'll declare today's meeting open. First, some housekeeping and some important points on how the meeting is going to run today. The bathrooms are located over in the foyer through the area that you entered. And if you experience an emergency, please follow the Eden Park staff and exit by the stairs and proceed through to the ground level to the car park assembly point on Walters Road. Time is allocated later in the meeting for questions. So unless you have specific questions in relation to the resolutions, we ask that you hold your questions today to the time at the end that is allocated. And for those that are up for reelection or election today, you'll be able to ask your questions at the time of the vote. All of the resolutions will be decided by poll, and the polls are administered by our share registry in the usual way. And we'll announce the results of the polls by the stock exchanges today after the close of today's meeting. The meeting order was released on the 15th of September 2026 and was also released sent to shareholders and also released to the auditors, the company and has also been posted on our website. The financial statements for the year ended 30 June 2026 and the audit report are included in our annual report, which is available online. Representatives of Deloitte, our auditors, are also here to answer any questions you may have in relation to audit queries. After my presentation, Carrie is going to give a review of the year, and we'll then move on to the motions followed by the Q&A. As is our custom, I will start with a snapshot of our FY '26 financial results. Overall, Auckland Airport delivered steady performance amid global headwinds, backed by strong delivery on infrastructure. The second half of the year brought significant disruption to global aviation with the Middle Eastern conflict driving sharp rises in jet fuel costs. This prompted airlines to trim capacity across their networks, including at Auckland Airport. Despite this, travel demand to New Zealand has remained resilient. And while we have some catch-up to do, board scheduling is pointing to a really strong summer ahead. So running through the results now. Our total passenger numbers increased to 19.04 million, which was up 1.6% on the previous year. Auckland Airport's revenue was up 3% to $1,036 million. Operating EBITDAFI was up $724 million, up 3% year-on-year. Reported profit after tax, including revaluations, decreased to $335 million. Of note there, we booked a much smaller $35.8 million net revaluation gain compared to the $127.5 million net revaluation gain in the previous year. The net underlying profit was trimmed by 0.5% to $309 million. Auckland paid a final dividend of [ $0.0675 ] per share on the 2nd of October, and total dividends for FY '26 were $224.9 million, which equates to a payout of 72.8% of underlying net profit after tax. Auckland Airport saw strong momentum in key international and domestic markets early in FY '26, thanks to New Zealand's continuing appeal as a destination and the strength of outbound travel. Overall, we had 25 airlines flying between Auckland and 43 international destinations across the year, with airlines continuing to see strong demand for travel to and from Auckland. We saw a 4% uplift in [ trans-Tasman ] capacity, powered by both growth from Air New Zealand, who added 132,000 seats and Jetstar adding 82,000 seats. The United States mostly held its ground in the face of global turbulence with a slight decline in capacity of 3%. We're also seeing growing interest in Auckland Airport as a connection point between Asia, New Zealand and South America. Government changes to visa settings and a 2% gain in airline capacity saw Chinese visitation uptick strongly by about 11% year-on-year. And this also included the launch of the Shanghai Auckland Buenos Aires service by China Eastern, which commenced in December 2025. And this network connectivity is known to Southern Link, and it's something that we've been working incredibly hard at behind the scenes for a number of years. It effectively positions Auckland Airport as a strategic transit point for broader global connectivity, and we're really pleased with the demand we've seen on the route to date. Argentine visitors arrivals rose 35% between December 2025 and March 2026, while air cargo export value was up 127% year-on-year for the period December '25 to April 2026. China Eastern will double the service to 4 flights per week from December this year. Earlier this month, we also welcomed the announcement by Singapore Airlines that they will extend the use of the world's largest passenger aircraft, Airbus A380 beyond the summer peak. This brings an extra 90,000 seats to Auckland from April to the end of October. Looking ahead to the summer peak, New Zealand continues to attract visitors drawn by our summer landscapes, vibrant cities and regions, culture, food and wine, while actually more [ Kiwis ] also packed their bags for their overseas trips. Auckland Airport will be supporting close to 6 million international seats between November 2026 and March 2027, with international airline capacity growing by 5% compared with last summer. Key markets showing capacity growth include China, Australia, Canada, South Pacific and the Middle East alongside new routes launched by Air New Guinea from Port Moresby, [ Starlux ] from Taipei, and that comes through Sydney to Auckland and Air New Zealand to Western Sydney. China is a real standout. China Southern Airlines has increased its Guangzhou services by 21% compared with last summer, operating up to a record of 18 flights per week, while Air China has increased its capacity from Beijing by 46%, which is included double daily services during the Chinese New Year period. And New Zealand is also increasing its services to Singapore from 7 to 11 flights per week, lifting capacity by about 45% or 47,000 seats compared with last summer. These capacity increases are good, great news actually for both Auckland and New Zealand as a whole. They strengthen New Zealand's connections with the world and are expected to support close to $5.7 billion of international visitor spend, benefiting urban and regional economies right across the country. This continued resilience in travel demand reinforces the case for long-term infrastructure development alongside sharpening focus on operational performance. We're now midway through the most significant aviation infrastructure program that New Zealand has had in its history, one designed to increase capacity and build resilience. It is generational infrastructure that will serve New Zealanders, also serve businesses and all our visitors for decades to come. Our integrated terminal program is over 50% complete now and construction remains on the critical path. The terminal must be completed before the essential runway safety upgrades can begin at the end of the decade. Our program is already delivering value for customers and experience will keep on improving as each new stage comes into service. The investments we're making aren't just increasing capacity and resilience at Auckland Airport. It actually helps power New Zealand. We asked EY to remeasure Auckland Airport's economic impact to align with our updated master plan, which we released in June this year. They found that 25,000 jobs are supported by our operations. We're the third largest port by value in New Zealand, and we also support $31.2 billion per annum in tourism activity -- international tourism activity, that is, alongside $6.7 billion in domestic tourism activity. Each time an international aircraft lands here, it generates $1.42 million in value for New Zealand. These wider benefits for New Zealand Inc. underline the importance of maintaining a stable regulatory playing field, which has been our area of focus over the past year. The Commerce Commission proposal to introduce a new approach in its draft decision on cost of capital input methodologies. It's the third review we've had in 3 years. It really risks shifting the goalpost for investors who are already invested and have already invested their capital with us. It affects the attractiveness of New Zealand as an investment destination, which is the point we've been respectfully submitting on while we wait their final decision. We're now underway with consulting with substantial customers on our Price Setting Event 5, which will set our aeronautical pricing for the period from 1 July 2027 to 30 June 2032. Airline charges cover both the cost of operating and maintaining the aeronautical assets as well as contributing to the new airport infrastructure. These are the assets that airlines use to operate their business, the runways, the terminals, the baggage systems, power, storm water and rescue fire services. Auckland Airport's current domestic charges are some of the lowest in Australia and New Zealand. Between 2023 and 2027, Auckland domestic charges have increased on average $1.26 a year and now sit at $13 per person. So for a domestic jet traveler, the airport charge is about the same price as a coffee and a muffin and certainly less than the cost of checking an extra bag onto an aircraft. It's important to note that the scale of our investment is consistent with major comparable Australian airports and what they're doing there. Melbourne, Brisbane and Sydney are all investing at least $5 billion in Australia over the next decade. So Auckland Airport isn't an outlier in terms of our infrastructure investment. Our infrastructure program has been benchmarked against comparable projects and is designed to deliver long-term value for airlines, passengers and New Zealand. Through the pricing consultation process, we'll seek to strike the right balance between maintaining competitiveness with our other airports in our region, also supporting critical infrastructure that's needed and recognizing that the capital provided by investors who fund it is also critical. There's no doubt airlines and the whole aviation industry are currently impacted quite significantly by elevated fuel prices. As always, we need to look through the short-term disruption to ensure the airport remains resilient for the long term. We remain very optimistic about the future and are confident that people have a strong desire to travel to New Zealand and the aviation will grow. Over the last 18 months, we've spent significant time considering the skills and attributes and composition we require for Auckland Airport's future. And we're also mindful that we actually have a number of directors that would be retiring at next year's October 2027 ASM. As you'll be aware, Christine Spring's stood down from the Board at last year's ASM, and we announced at that time that we're in the process of recruiting a new director to replace Christine. And I'm delighted to say that, that new director is Sean Donohue, who joined our Board on the 1st of February this year. He sits on the Infrastructure Development Committee and the Safety, Sustainability and Operational Risk Committee. And later in the meeting, you will be invited to vote on a motion that Sean be elected as a Director of our company. His full biography was contained in the Notice of Meeting, but just a little plotted piece about Sean. He was the Chief Executive of Dallas-Fort Worth International Airport for 10 years until he resigned in 2025, and he's currently a Nonexecutive Director of Atmos Energy Corporation and Willow Inc. He's held senior roles at Virgin Australia and United Airlines as well as international aviation and tourism bodies. So Sean's depth of experience in global aviation strategy and operations is highly aligned to the direction and aspirations that we want to go at Auckland Airport. He brings his strong global connections through his membership of various global travel and tourism councils and committees, including chairperson roles. So you won't be surprised to realize that Sean has hit the ground running when he joined us, and he's been fabulous to have around our table. So the Board unanimously recommends shareholders vote in favor of Sean's election. As you'll also be aware, after 9 years of service, I'm required to stand for reelection again, and I need to retire in the normal process. But having been eligible, I've offered myself for reelection. As I mentioned before, we've been looking at the Board composition and timing and making sure that we have the right mix of new and seasoned directors. So we did a huge amount of work around our succession planning. And the Board supported me to stand for a further term so that we've maintained that continuity. But as has been indicated in the notice of meeting, this is my last term, so I won't be standing again in the future. So when it comes to my term for my reelection piece, I'm going to ask my fellow director, Tania Simpson, to speak to that specific resolution. Today, I would also really like to recognize Mark Binns, who stands down from the Board after almost 9 years. Mark is a fantastic director. He's got deep governance experience and construction sector experience, and he's been a significant contributor to Auckland Airport. His experience, his expertise and his contribution around the table and his input into our guidance into our infrastructure development program has been absolutely invaluable. And Mark, we're really going to miss you. He's been a fantastic director to have and work with. We're currently in the process of recruiting a new director to replace Mark, a bit like we were in the same position last year with Sean, and we look forward to being able to introduce that new director to you at next year's annual meeting, and we'll seek your support with their appointment at that time. We're now into year 4 of our building a better future strategy. The results are evident across the precinct as well as increasingly embedded in the systems that sit behind the scenes and serve the evolving needs of travelers, airlines, airport stakeholders and the wider community. With the strategy now on track and now extended to 2030, we've got a clear line of sight on what is required and the experience and confidence to deliver it. In FY '26, the priority has been the capital program that delivered safely, on time, on budget and to the standards that this country deserves. Alongside this focus, we remain absolutely firmly laser-driven focused on driving commercial outcomes, operational efficiency and innovation right the way across the business and maintaining at the same time, a disciplined cost control. We're optimistic about the future as Auckland Airport looks ahead to the balance of FY '27. As I outlined earlier, there's a strong underlying demand for air travel to New Zealand for the upcoming summer peak travel period and ongoing momentum in our commercial business. However, challenges do still really remain on the domestic front. I'd like to take this opportunity to thank Carrie and her team for another very strong year of great progress. And also to my fellow directors, I'm very blessed to have such a great group of people around our table. So I'd now like to invite Carrie to take us through some of the operational detail and delivering on the pillars of our strategy. So thank you, Carrie.

Well, thank you, Julia. [Foreign Language] It's great to see all of you here today at Eden Park, and also welcome to those of you that are online with us today. Holding our meeting at Eden Park is a useful reminder that success doesn't come from a single shot of glory. It's built steadily through preparation, teamwork and persistence. And I think that's a pretty good description of what Auckland Airport has been doing for the past year as we navigate short-term disruption to build the infrastructure for the future. After several years of planning and preparatory works, we are well and truly into the thick of the build program. We know that there will be disruption ahead, and we're focused on managing it well for travelers, for airport partners and for investors. As Julia mentioned, we've made strong progress on our transformation program, and this includes advancing the new integrated domestic jet terminal, along with delivering significant airfield upgrades and improvements to transport infrastructure. During FY '26, we commissioned a total of $1 billion of assets, including our international airfield expansion and significant upgrades to our storm water and air conditioning systems. We are in the peak investment phase of our development program. The first phase of international check-in upgrades is close to completion and the first 2 stages of our international airside retail precinct redevelopment are also complete. As we advance construction, our focus is increasingly shifting from building the new infrastructure to bringing it into operational use. Our team is laser-focused on improvements to deliver a better experience for our customers and technology innovation and efficiency improvements will continue to deliver step change. Despite the most intensive stage of the build still being in progress, the data shows that our work with airport partners is delivering shorter journey times with greater consistency. International rivals have seen the biggest improvement. Since financial year '23, medium processing times have fallen by 47%. Over the past year alone, they're down 2% for international rivals and 7% for transits. And we've also seen strong gains in departures as well. Medium processing times there are down 16% for international departures and 7% for domestic departures year-on-year. But if we look back to FY '23, that number is 27% overall. These changes are reflected also in the continued improvement we're seeing in our customer satisfaction scores with an overall 4.4 out of 5 score on our voice of the customer measures across financial year '26. And that's with 20,000 responses gathered through this ongoing monitoring tool. In terms of a global benchmark, across the year, we achieved a score with ASQ or Airport Service Quality of 4.19 out of 5 for passenger satisfaction. Now a few things can frustrate operations and spoil the customer experience like digital lag. So we've also made a substantial digital network upgrade in the past year to support with the increasing volume that we're seeing of devices, systems and data across the precinct. This includes support for our check-in transformation. Over the next 3 years, our check-in hall will transform into a 13,000 square meter departures area that's modern, digital and intuitive. New self-service kiosks and automated bag drops will be future-proofed with biometric capability and will replace those traditional counters you might be used to, freeing up space, easing queues and improving flow. We're soon to fully open a 520 square meter flagship check-in area called Zone C, and this will give travelers an early look at what's ahead, smarter technology, less time spent queuing, which I think everybody loves and a smoother journey through check-in. Gone are the '90s era of airline desks in Zone C, now replaced by 28 modern self-service kiosks and 15 automated bag drops in a completely redesigned space. The technology means the area can be used by different airlines rather than set aside for just one carrier. That gives the airlines greater flexibility as flight schedules and traveler demands can change across the course of a day. For anyone flying, it means more freedom to move through at your own pace. Families, larger groups and people who don't travel often will have more time and space to get organized without feeling rushed, while frequent flyers will excuse upon fly through. We want it to feel easy and relaxed with help always close at hand for anyone who might need it. By the end of the decade, people traveling on domestic jet services will check in alongside international travelers with shared check-in facilities supporting both in the new integrated terminal. All of this means that there will be some disruption in the months ahead. As construction continues, travelers may find that check-in counters, walkways and facilities are in new places. So in response to that, we have installed extra signage, more flight information screens, and we've positioned more staff in key areas to guide people through the process. And we certainly appreciate travelers' patience as the terminal changes around them. And we're confident that result will be well worth it when the integrated terminal is complete in 2029. More than 50,000 travelers a day, that's up to 30,000 international and 20,000 domestic currently move through Auckland Airport. We continue to work closely with transport agencies to plan for the road and public transport improvements needed beyond the airport boundary, but we're also playing our part, ensuring the airport's 24 kilometers of roading network keeps pace with growth. In 3 years, we've added and extended transit lanes. We've upgraded forecourts, expanded park and ride facilities and improved wayfinding alongside smarter traffic management. This includes a new dynamic lane system at the [ Pukaki ] Bridge Southeastern entrance to effectively double the peak direction capacity for customers on one of our busiest roads, and that's to come in the new year. Since the full opening of the transport hub in late 2024, parking has also become faster and more intuitive, not just with the transport hub itself, but across the precinct with license flight recognition and mobile and online payment now available across all 5 international car parks and Park and Ride South. It's fair to say that Auckland has had a tough few years between the pandemic, a muted economy and disruption from major infrastructure projects across the wider city. It's exciting to see [ TomakiMakoto ] now turning a corner following a few years of hard yards. And you can see that in the wholesale and ongoing redevelopment of the Auckland Waterfront along with port and cruise infrastructure, renewal of the public transport fleet with increasing electrification of buses, trains and ferries, the opening of the New Zealand International Convention Center in February this year, alongside available hotel rooms increasing 25% since 2019. And last month, the City Rail Link opened, giving Aucklanders faster and more reliable ways to get around. In the context of the citywide makeover, Auckland Airport's once-in-a-generation transformation will further contribute to a connected urban network and set us up for success as a primary international gateway for tourism, trade and commerce. I'm heartened that the recently signed Auckland City deal identifies Auckland Airport as one of the strategic growth areas for our city. It highlights priority transport projects that have the potential to unlock significant economic benefit for both Auckland and New Zealand. We're preparing for the future where the number of travelers through Auckland Airport is expected to almost double to 38 million by the 2040s. So easy, reliable access to the airport is a key priority. We strongly support better public transport links, which alongside the investments we are making now will help us welcome this continuing growth, both as a city and the country. In a sometimes troubled world, New Zealand is certainly holding its own as an aspirational destination in a place of beauty and hospitality, not that I'm biased or anything. But we see tourism continuing to drive passenger numbers through Auckland Airport and bring economic benefits to the wider region. For example, between July 2025 and March 2026, Australians spent 11% more in the North Island year-on-year, North Americans 48% more and Chinese 31% more. The Visa waiver trial that the government rolled out in November 2025 for those Chinese visitors already holding certain Australian visas has successfully unlocked a new segment of Chinese visitors entering New Zealand. And these incremental visitors are ones that New Zealand wouldn't have otherwise had. The benefits of those visitors are also positively impacting the regions. For example, [ Waikato ] is emerging as a genuine new draw card. Tourists heading to [ Hoitton ] have seen a quadrupling of [ Matamato's ] Chinese visitor share and visitors to Hamilton are staying twice as long. All of this reflects the hard work of promoters like Kiwi North, a regional grouping of 15 tourism organizations, including Auckland Airport. We work together to put the North Island on the radar of international visitors and give them a compelling reason to come. This kind of active targeted work gives us agency as a region and a country even when there is the potential global disruption that we're seeing now, such as the conflict in the Middle East. I'm pleased to say customers are still traveling and confidence across the sector is holding. Overall, as Julia mentioned, we are optimistic about the future of travel. The aviation sector and travelers alike have been tested most certainly in recent years, and both have come through more resilient. People's desire to travel remains as strong as ever. Notwithstanding that, we continue to take a cautious approach in our near-term forecasting with the current fuel price volatility and geopolitical instability expected to keep flight and passenger volumes relatively flat in financial year '27. Trading performance for the first quarter of the year has been positive. And while we remain confident about the strength of inbound passenger demand, we also see continued challenges in the domestic aviation market. As such, we remain and maintain the underlying profit guidance range for FY '27 of $290 million to $330 million. And as I've emphasized today, we certainly continue to make strong progress in our infrastructure program. Our financial year '27 guidance for capital investment remains at $1 billion to $1.3 billion for the year. As always, there is the possibility of unforeseen changes as a result of global market conditions or other circumstances. Looking ahead, the big picture is important. We see an underlying trend of airline capacity returning, including Air New Zealand getting its fleet back up to full strength. As Julia mentioned, airline slot filings for Northern Winter 2027 point to a positive outlook. Tourism settings remain supportive. Hotels and event infrastructure across Auckland and the country are in much better shape, and our investment in Auckland Airport is already delivering enhancements for travelers. We are building New Zealand's gateway to the world, and I am looking forward to sharing that journey with all of you. [Foreign Language] Thank you.

Thanks, Carrie. And sorry for my delays up here. I have a newfound appreciation in respect for those with mobility issues, but I'm lucky that mine is only for 6 weeks, but yes, I'm a bit slower from the stage. Look, thank you, Carrie. Now all the resolutions will turn to. You may ask questions on the matters that are being put to shareholders in person or through the virtual meeting website. And I'll ask for any questions for each director standing for reelection or election to be asked immediately after either Sean or I have spoken. Can I also ask that shareholders please give their name when speaking to the resolutions and confirm if you're either a shareholder or a proxy holder. We've got roving microphones in the room. And so can you please make sure that you wait until you get the microphone because those online can't hear the questions unless it goes into the mic. So we'll be very careful about that. So shareholders participating in the meeting online will have the ability also to ask questions through the virtual meeting platform. And a member of our legal team will be reading out those questions to us here on stage at the appropriate time of the meeting. So everyone attending the meeting can also hear those questions. If you do require assistance, those of you that are online, please refer to your virtual meeting guide or call the specified help line number. We also may amalgamate questions of a similar nature because that makes the flow of the meeting easier. But if at the end of the meeting, you don't feel like we've addressed your question or you'd like us to address it further, you can either catch us here, myself and the Board and management team will all be here after the meeting or for those of you that are online, please do make contact to us via our Investor page on our website. As mentioned earlier, the voting on all resolutions will be conducted by way of a poll. So if you're voting as a shareholder, proxy holder or corporate representative, please use the voting paper handed to you at the registration for the meeting. And shareholders who are joining online, you'll be able to use the electronic system and cast your vote using electronic voting, and you will have received that when your registration was validated. To vote, you're going to need to click the get voting card within the online meeting platform. You'll be asked to enter your shareholder or proxy number to validate and then please mark your voting card the way you wish either clicking for, against or abstain on the voting card. Once you've made your selection, please those online, press the submit vote on the bottom of the card to lodge your vote. And as I said, please refer to the virtual meeting online guide or portal and the help line, you should have it on your forms, but if you don't, it's [ 0800-200-220 ]. So if you require assistance, that is the number. Proxies have been received from 739 shareholders for about 1.3 billion shares, which represents approximately 77% of the shares on issue. Shareholders, the company's constitution allows for a maximum of 8 directors. And as I mentioned earlier, we have 2 directors offering themselves for election or reelection. We'll ask the directors to address the meeting first, and then we'll take any questions. And then we'll then request shareholders to cast the votes for each of the resolutions. And as I mentioned before, there's going to be an opportunity to ask general questions after the formal resolutions. So let me turn now to ordinary resolution #1. And I've already provided a fairly detailed background in relation to Sean Donohue when I spoke earlier. Sean Donohue joined Auckland Airport as a Director of the company in February earlier this year. The Board unanimously recommends that shareholders vote in favor of Sean's election. It's considered by the Board to be an independent nonexecutive director. So I'd now like to ask Sean to address the meeting.

Good morning, everybody. Chair, fellow directors, Carrie and the airport team and shareholders. Thank you for the opportunity to speak today. It is indeed a privilege to have joined the Board of Auckland Airport earlier this year, and I'm pleased to be standing for election today. My entire career has been spent in aviation, an industry that I continue to find enormously rewarding because of the role it plays in connecting people, communities and economies. Most recently, as Julia mentioned, I spent a decade leading the team as Chief Executive of Dallas-Fort Worth International Airport in the United States, the fourth largest airport in the world. And as Julia mentioned, before that, I spent 30 years in the airline industry, many of those with United Airlines, but I also had the opportunity to live in Australia when I worked for Virgin Australia. During my time at DFW, the airport delivered over $7 billion in infrastructure improvements, strengthened operational resiliency and supported our goal of being carbon net zero by 2030. Airport infrastructure projects are complex and challenging given the necessity of delivering these projects in active airport operation environment. I have to say in the time I've been at Auckland Airport on the Board, one of the things that has most impressed me with Carrie and her team is the incredible focus they have on creating a safe working environment for the thousands of people that work at Auckland Airport. It has been very, very impressive to see that. Major transformation programs also require a long-term view and disciplined execution. They also need to deliver for the people who use the airport every day. The millions of customers that travel through Auckland Airport, the over 2 dozen airline partners and the hundreds and hundreds of business partners. And collectively, I believe at Auckland Airport, and I've seen this at airports all over the world, it helps make the airport an incredible economic engine and asset for the country and for the city and the region it supports. I hope the experience and perspective I have gained over many years in global aviation can make a useful contribution as Auckland Airport continues that work. I'm also very conscious of those who are directors serve. Auckland Airport shareholders range from large institutions to thousands of individual New Zealanders, many of whom have backed this company for decades. Each of you has placed your trust in this Board to oversee your investment wisely and to make decisions that build lasting value. Serving you in that role is a responsibility I take seriously. It would be a privilege to continue as a director, and I respectfully seek your support today. Thank you.

Thanks, Sean. I now move that Sean be elected as a Director of the company. But first, are there any questions that we have from the floor? Someone here. Could you please wait for the mic and then if you could state your name and then ask your question.

[indiscernible] shareholder. Sean, where are you domiciled?

Where do I live?

Yes.

Where? I live in Massachusetts outside of Boston, Massachusetts.

Right. So that's quite a long way to come down for Board meetings.

Yes, it is.

And that's not a problem.

It's not a problem for me. Again, being in aviation for 40 years, I have traveled extensively and the travel does not bother me. And I've been able -- and my commitment is to make every Board meeting in person in Auckland.

Could I ask, do you use Air New Zealand?

I have been flying [ Qantas ] because they have the most service from Auckland to JFK, which is the airport I fly out of.

Are there other questions from the floor? I can't see any. Are there any questions online, Shannon?

We have received a question from...

We can't hear you. Could you just hold on a minute.

We have received a question from a shareholder online from Stephen Mayne. Could new Director, Sean Donohue and the Chair comment on the recruitment process that led to his appointment to the Board? Was a headhunter involved? Did the full Board interview any other candidates? And did Sean know any of our directors or key management personnel before engaging with the recruitment process? Where does Sean live? And how much time each year does he expect to spend in Auckland?

Well, let me start responding to that piece. In terms of Sean's appointment, we are very, very mindful that we wanted someone with deep, deep sector experience. And to find the right person with that deep sector experience meant that we needed to not just look within New Zealand, but do an international search. So we did use a search firm out of Australia to assist us with that process. We had a very good list of individuals that came forward, but Sean really shone through in that process. It was an entirely independent process, and we did interview others, but Sean was our standout person in relation to the role. In terms of knowing people on the Board, I think he crossed over for a short while with Liz Savage when she was also at Virgin Australia. So she was able to, when Sean's name came into the mix from the headhunter, confirm that we had a pretty good person that was going to be in the mix for us to consider. And as I said when I was commenting about Sean earlier, he's got that in spades. The amount that he's added to our Board during that period has been fantastic. We've already asked the question in relation to Sean. He doesn't live in New Zealand, but he has traveled down to all of our meetings. Travel has not been an issue for him and is an absolutely fabulous contributor. And I think for the benefit of Auckland Airport and our longer-term piece, not only in terms of the large infrastructure play, but also understanding all the dynamics of the airport itself and the various interrelated factors we need to think about. And also the work that Sean, he didn't really talk about it, but whilst he was at Dallas-Fort Worth, did a huge amount in terms of bringing the relationship between its key airline customer and the airport together much more. And we think that's a really important thing for us here in Auckland as well. It adds a lot of value. So yes, very independent, and we're delighted with the process.

There are no further questions online.

Thank you, Shannon. Well, I now move that I shall stand up for this. I'll now move that Sean be elected as a Director of the company. There's no more questions. So what I will do is -- will let shareholders vote at the end, Shannon, once the resolution is all done.

At the end of the meeting.

Perfect. Okay. Thank you. Well, I'll ask then Tania, if you wouldn't mind stepping up for my reelection. Thank you.

Thank you, Julia. We now turn to the ordinary resolution 2, the reelection of Julia Hoare. Julia was appointed to the company as a director at our 2017 meeting, and she has been in the Chair role for the past 2 years. Julia is considered to be an independent Nonexecutive Director with the skills, experience and understanding of Auckland Airport's business to be able to execute the largest infrastructure program in its history. And the Board considers that the continuity of governance oversight during this significant period of delivery to be in the best interests of the company and its shareholders. If Julia is reelected, the Board intends that she will remain the Chair until the completion of a further 3-year term. A detailed biography in the Notice of Meeting notes that Julia has been a Director of Auckland Airport since 2017, bringing extensive multinational chartered accounting experience and expertise that spans finance, commercial, tax, regulatory, sustainability and climate change. Her other directorships include being a Chair of the Port of [ Tyana ] and a Director of Meridian Energy. The Board unanimously recommends that shareholders vote in favor of Julia's reelection. She's considered by the Board to be an independent Nonexecutive Director, and we now invite Julia to address the meeting.

Thanks very much, Tania. And I'd like to thank you all for your ongoing support of both Auckland Airport and also myself over my time here on the Board. It's been an absolute privilege to serve you as a director and more recently as Chair of your company. As I reflect on my time on the Board of Auckland Airport, I'm reminded of the incredible resilience, adaptability, foresight that Auckland Airport and the team have demonstrated in navigating numerous challenges over the years. We've weathered the storms of the global pandemic and geopolitical uncertainty, and we've adapted as patterns of travel and trade have shifted over time. So through all of it, we've never lost sight of building the long-term resilient infrastructure that will open us up for new opportunities for trade, tourism and growth right across New Zealand. I'm proud to be part of a strong group of governors and management who have guided the airport through these challenging times while pursuing our strategy of building a better future, which means meeting the evolving needs of travelers, airlines, stakeholders, investors and the wider community. If you've been through the airport lately, you'll have seen the strategy taking shape before you. And as Carrie mentioned, we're now halfway through the terminal program, and it's -- the build is now very, very visible when you go out to the airport. We want to thank you also for your patience with all the changes that are taking place at the airport at this time. We're working hard to keep you travel and keep you moving with as little disruption as possible. I'm also actually really proud of the laser focus that we've had on our customers where we aim to make the airport experience a really positive one for all, and none of this happens alone. It's through the partnership and close collaboration with our airport partners that we've been able to deliver a more enjoyable airport experience for our customers. I've offered myself for reelection in order to provide continuity through this critical phase of delivery of our strategy. I understand the complexities and the opportunities we have ahead. However, as was made clear in the Notice of Meeting, this will be my last term on the Board. I welcome your continued support as a Director and Chair of Auckland Airport as we deliver our next phase of growth, innovation and opportunity. Again, I truly thank you for your support, and I look forward to continuing this journey with you. So thank you so much, Tania.

So I now move that Julia Hall be reelected as a director of the company. Are there any questions on the matter firstly from the floor? 1, 2.

Could we see the proxy for and against votes up on the screen, please?

Shannon, can you comment on that?

The shareholder poll will be published on the NZX after the meeting. So those proxy results will be available then.

And is that an NZX -- I mean the shareholders Association recommendation that we don't show -- I just recall, historically, there was a recommendation that you don't show them at a meeting, which is why we don't.

Correct. That's correct. And the voting is also not finalized until the meeting is closed.

Sorry, we don't have them to put up on the screen. Apologies. There was another question here. Do we have an issue with showing the proxies or...

There are no issues.

The shareholders -- I am a shareholder right from the beginning. My question was same [indiscernible], why I wasn't the proxy...

My understanding that I will defer to our legal team. My understanding was that we used to -- not in the last few years, but historically, we used to, and there was a recommendation from the I thought Shareholders' Association that it was not to be shown until after the conclusion of the voting. But I don't have any issue with it being shown. I just -- that's why we have not prepared a slide on it.

That is correct. And as the proxies aren't finalized until the end of the meeting, we do not publish those results. They will be available shortly after the meeting is closed.

Okay. Well, we will definitely take that away and revisit that for next year's annual meeting. We've got no concern on any of the proxies. The proxies as far as I'm aware, have been very supportive of all of the resolutions. So I don't think there's any issue around the proxies. We have just not shown them as what we understood was best practice, but we had no issue. So we will -- I'll take that away and Shannon can talk about that with the legal team later. We'll just get the mic to you so that we can all hear.

I hold several portfolios in all the meetings that [indiscernible] they show the proxy give some indication to the shareholders what's happening.

Well, I don't have them here to give you any detail. I don't know whether Shannon has them. Shannon, do you have -- we're not trying to hide the information. So...

We do have proxies. However, as we've mentioned earlier, they're not finalized. We will publish them at the end of the meeting.

There's another question over here. We can have the mic, please.

Paul, a shareholder. I think you'll find there's been a transition away from providing proxies during the course of the meeting. And I think it's not only to do with the requirements from the Shareholders' Association, but also the NZX they like to check that out as well. The last meeting I went to, there were no proxies provided during the meeting, but only afterwards.

Thank you. Are there any more questions from the floor? It appears not. So Shannon, are there any questions from shareholders online?

There is a question from shareholder, [indiscernible]. Why is Ms. Hoare not seeking reelection after the next term? And secondly, may I know where Ms. Hoare's boot jacket is bought from?

Look, thank you. I've served on this Board now for 9 years, and it's been an absolute pleasure and a total privilege to be a director of your company and also the Chair. And I've offered myself for reelection for a 3-year period. I just think that good governance is such that once you hit a 12-year period, some may question whether or not you're independent or not. I'd love to be here forever. I love the company. I think the management team are fantastic. I sit in a good company of a fantastic Board. So it's a real privilege. But I just think that you need to be governed with the best governance, and I think that, that is appropriate and bringing new ideas, new people around the table. So respectfully, it's been a fabulous 9 years. I'm hoping that I have your support for the next 3. And after that, I won't be seeking reelection because I think you, I owe it to you for good governance. In terms of my jacket, it's an oldie, but a goodie. So do I give plus -- it's an Adrian Winkelman jacket, but I've had it for a long time now. She has closed to business. So -- but I still it out of the coup because I know -- there we go. So thank you, Eva.

Thank you. Are there any further questions from shareholders online, Shannon?

There are no further questions.

Thank you. I will move that resolution and pass back to Julia.

Thanks very much for that, Tania. So now turning to Resolution 3. Deloitte is automatically reappointed auditor this year of the company under Section 207T of the Companies Act. So I move that directors be authorized to fix the fees and expenses of the auditor. So are there any questions from the floor on this matter? No, there's none. Shannon, are there any questions?

There is a question from shareholder, Stephen Mayne. How many audit tenders have we run during Deloitte's uninterrupted 25-year plus run as external auditor of our business? If the answer isn't 0, when was the last tender? And when are we next likely to run an audit tender?

So let me start answering that question, and I'm going to actually pass across to Grant Devonport to further fill in the rest of the detail. This is a matter that we have been considered quite deeply, and we understand the perspectives of shareholders in relation to auditor rotation. We've been incredibly well served by Deloitte and so have absolutely no issues with them. But as we highlighted in this year's annual report, we recognize from a governance perspective, it is appropriate to have auditor rotation. We're now in the process of appointing a new auditor. And through that process, we actually asked Deloitte not -- we didn't invite Deloitte to be part of that tender process because the whole point about change is to have a change in rotation of auditors. So I just would like to acknowledge Deloitte. They've done a fantastic job for us, but we are currently going through a process of changing our auditors for exactly the reasons that are being indicated here. But Grant, would you like to make any further comment?

I think you covered it well, Julia. So yes, we look forward to announcing that in the next year and having that the Annual Shareholders' Meeting next year.

Thank you. Shannon, any other questions?

There are no further questions.

Thank you. Okay. We will now conduct the polls in respect of the meeting, the motions which have been put to the meeting, and the poll is going to be administered by our share registry, MUFG, Pension and Market Services, and they're going to act as scrutineers. So could you all please complete your voting papers, either ticking for or against or if you wish to abstain from casting a vote. And anyone that is having difficulty in the room, could you please raise your hand and assistance will be provided. And the share registry staff are going to move through the room to collect your voting papers. As I mentioned earlier, those shareholders of you who are participating in the meeting -- virtual meeting through the website, you should also submit your votes and the results from the polls will be announced on the NZX and ASX later today. Now to the more general business, and I invite shareholders to raise any questions that they may wish to pose to us. And I'll start with those in the room but questions, comments and discussions, whether they're related to the presentations, the annual report, financial statements or any matters of concern in relation to the governance or management of the company or also ask any other matters that may lawfully be considered at this meeting. And again, those shareholders who are participating online, you are able to ask questions through the virtual meeting website. But please, can you keep those questions short and clear because they're being processed at our end and then need to be relayed to us. But for those of you in the meeting venue today, as I said before, if you don't get a chance to ask your questions here or you don't feel that it's been answered fulsomely enough. The Board will be here after the meeting as will the management team and available to answer any of your questions. You'll easily be able to -- yes, I'll just give a bit of the detail then there is the first question in a minute there, but you'll easily be able to identify the Board. The Board have black badges and the management team have blue badges. So I'll ask shareholders, corporate representatives and proxy holders who wish to speak, just please again just wait for the microphone, state your name as appropriate and the organization to which you represent, if you're representing an organization. And so there are questions from the floor. So can I start here, please?