AIA – FY21 Annual Results

Media Statement | 19 August 2021

FY21 Annual Results: Future focused
and resilient despite market conditions


Highlights
• First full-year underlying loss in the history of Auckland Airport
• Restructured funding and covenants support recovery and future
development plans
• Reset infrastructure programme and new precinct retail development
to be aligned with international aviation recovery
• New domestic hub to be merged into the international terminal
• New retail outlet centre featuring more than 100 stores and food outlets
planned
• New sustainability strategy and goals - a pathway to Net Zero Carbon
emissions by 2030
• Auckland Airport to give permanent employees $1,500 in airport
shares to thank them for their efforts over the past year

Auckland Airport today announced its financial results for the 12 months ended 30
June 2021.

Auckland Airport Chair Patrick Strange said: “It has been a year of disruption,
resilience and adaptation for Auckland Airport as we worked through the pandemic
to keep New Zealand safely connected to the world. Our results continue to reflect
the serious impact that COVID-19 has had on our business and the wider aviation
sector. This week’s national lockdown is a reminder that while there is still a great
deal of uncertainty, the accelerating vaccination programme allows us to plan
beyond the current phase of the pandemic with increasing confidence.

“I want to thank our people for the way they have responded to the COVID-19 crisis.
They have put health and safety and the community first, working hard to always
meet public-health requirements even as the apparent risks of the virus and the
protocols for managing it were constantly shifting. In this difficult environment our
team has remained committed to our recovery, planning ahead to strengthen the
business and position us to succeed as demand returns.”

Key performance data for the full year includes:

• Total number of passengers decreased to 6.4 million, down 58.5% on the
previous financial year. International passenger numbers (including transits)
were 0.6 million while domestic passenger numbers were 5.8 million
• Operating EBITDAFI was down by 34.1% to $171.5 million
1

• Reported profit after tax was up 139.4% to $464.2 million
• Underlying profit fell by $230.3 million to a loss of $41.8 million
1

• Earnings per share was up 107.2% to 31.5 cents per share (principally as a
result of investment property revaluations)
• Underlying profit per share fell to a loss of 2.8 cents per share
1

• Revenue was down 50.4% to $281.1 million
• No final dividend will be paid

Chief Executive Adrian Littlewood said the 2021 financial year had been a year like
no other for Auckland Airport, with the lowest number of international arrivals and
departures since 1972.

“COVID-19 changed our business overnight bringing constant upheaval to almost
every part of our operation. But throughout all the uncertainty of the past 18 months,
our team’s determination to get the job done and go the extra mile for New Zealand
has never faltered.

“I’m really proud of our team and their work to keep Kiwis connected to each other
and the world and in recognition of their efforts we are giving $1500 in shares to
each of our permanent employees – both as an acknowledgement of their hard
work but also the critical role they will play as aviation recovers.”

1
We recognise that EBITDAFI and underlying profit and loss are non-GAAP measures. Please refer to the table at the end of
the media release for the reconciliation of reported profit after tax to underlying loss after tax

Mr Littlewood said the recovery of domestic travel had continued in the 2021
financial year, with domestic passenger numbers reaching 5.8 million, 17% down
on the previous year.

Overall, total domestic and international travel was down 58% in the 2021 financial
year on the previous period, with 6.4 million passengers. International traffic
remained low with 0.6 million international passengers including transits at
Auckland Airport in the 12 months to 30 June 2021, down 93% year on year.

Auckland Airport’s investment property division continued to perform strongly in the
12 months to 30 June, with occupancy remaining at 99% at the end of the 2021
financial year despite the impact of COVID-19. Investment property annual rent roll
increased 12.5% to $117 million and the portfolio value grew 29% to $2.6 billion.

Auckland Airport’s recovery strategy
In 2020 Auckland Airport outlined a three-stage plan through and beyond the
pandemic: Respond, Recover, Accelerate.

Mr Littlewood said Auckland Airport had gone further to control costs and reset the
business in the 2021 financial year to ensure it reflected the new operating
environment, including:

• Scaling back operating activity resulting in a significant reduction in
operating expenses
• Repaying the remaining $425 million US Private Placement (USPP)
borrowings. This, in addition to closing out a number of interest rate and
currency hedges, is expected to reduce Auckland Airport’s 2022 financial
year interest expense by more than $10 million
• This month banks supported Auckland Airport’s request to renew nearly
$700 million of debt facilities due to mature between January and April 2022.
From January 2022, Auckland Airport has agreed that the interest cover
covenant currently waived by lenders will convert from an EBIT-based
measure to a new EBITDA-based measure.

Mr Littlewood said taking these steps had renewed Auckland Airport’s confidence
in its ability to fund the planned infrastructure programme for the 2022 financial
year and beyond.

“In the 2021 financial year we continued to support our business partners who are
critical to the long-term success of our precinct, working with organisations to
provide relief on a case-by-case basis, depending on the impact and type of
business,” Mr Littlewood said.

For example, Auckland Airport provided $9.0 million in aircraft parking support and
$3.9 million in rent reductions to off-terminal property tenants in the 12 months to
30 June, including precinct retailers whose businesses have been impacted by
lower foot traffic. Much larger abatements were provided to our in-terminal retailers,
and despite facing a tough operating environment, occupancy remains at 96%
across both terminals. Investment property occupancy remains at 99%.

Mr Littlewood said another area of focus for the 2021 financial year was the
development of a new sustainability strategy and goals. He said Auckland Airport
had set a pathway to achieve Net Zero Carbon emissions by 2030, including
transitioning away from natural gas in the terminal. It had also completed its first
report in line with the recommendations of the Taskforce for Climate-related
Financial Disclosures (TCFD).

“Auckland Airport was one of New Zealand’s early adopters of sustainability
principles and we have made considerable progress in the areas of emissions
reductions, energy savings, and waste management. Having largely met our
previous objectives, we are lifting our sights with new sustainability targets, setting
out how we will create value for our people and communities; contribute to the
economy; and help tackle global challenges such as climate change.”

Infrastructure
Prior to the outbreak of COVID-19, Auckland Airport had begun delivering on over
$2.0 billion of core aeronautical infrastructure projects with eight anchor projects in
either construction or feasibility and design.

Mr Littlewood said despite the impact of the pandemic on the aviation sector,

Auckland Airport’s capital investment in the 2021 financial year had continued,
focusing on the upgrade and renewal of core infrastructure and to take advantage
of the low traffic environment on the airfield and roads to minimise disruption. This
included:

• $26 million invested in runway and wider airfield pavement replacements
and upgrades
• $69 million in roading upgrades and construction of a mass transit system,
including a $21 million contribution towards improvements along State
Highway 20B which added high-occupancy vehicle lanes, cycling and
walking paths, as well as road safety improvements to the important
Auckland Airport-Puhunui-Britomart public transport connection.

Mr Littlewood said Auckland Airport had also carried out significant work to reset
and reprioritise its infrastructure development plan.

“We have used this time to create a refreshed infrastructure development pathway
that is realistic, prioritises the right projects, and is in line with aviation’s recovery.

“Our priority development is construction of a new domestic hub to be merged into
the international terminal at the eastern end of the building, providing a much-
improved customer experience for travellers connecting between major New
Zealand destinations and our global air connections. For Auckland-based
travellers, a new transport hub with upgraded pedestrian, transport links, and car
parking will offer a smooth connection into the terminal building.

The first $30 million stage of the $1 billion-plus domestic hub is expected to get
underway in early 2022, focusing on demolition works to clear the footprint of
building. Mr Littlewood said the next major phase of development would be
determined by a range of factors including the speed of aviation’s recovery.

“Kiwis have told us they want an improved domestic experience and we are getting
on with it with an infrastructure development pathway that will be strongly matched
to aviation’s recovery and is supported by Air New Zealand and the Board of Airline
Representatives of New Zealand (BARNZ).

“Along with the domestic hub we are continuing to progress three more of our
anchor projects: our $160 million-plus programme of transport upgrades; a $200
million-plus transport hub; and upgrades to the existing domestic terminal. Anchor
projects that remain on hold are the international airfield and taxiway expansion;
new cargo precinct; new international arrivals area and the second runway.”

Retail business
Today Auckland Airport announced plans to strengthen the precinct shopping
experience further with the development of a 23,000m
2
-plus outlet centre,
generating more than 500 new jobs across more than 100 stores and food outlets.
(see accompanying media release) Key highlights include:

• Outlet centre to be located on the north-eastern edge of the precinct offering
sought-after premium and lifestyle brands to consumers at often heavily
discounted prices
• Sustainable design principles to underpin development with Auckland
Airport targeting Green Star design and build
• Careful precinct-wide planning and ongoing investment in transport will
continue to prioritise terminal-bound traffic and enable public transport
• Major phases of development to be influenced by the strength of the retail
market and the recovery of aviation

Looking ahead
Auckland Airport continues to adopt more conservative planning assumptions than
those of the International Air Travel Association (IATA), which is forecasting global
travel to fully recover and exceed pre-pandemic levels in 2023. Mr Littlewood said
a full recovery may take longer.

“Our financial performance is strongly linked to passenger volumes, so our
recovery will be greatly influenced by the return of domestic and international travel
and changes in border settings. There are encouraging signs with vaccination
programmes now ramping up here and around the world but we expect to see
further volatility in domestic and international travel in the short term, with the global
aviation market gradually rebuilding in 2022.”

Due to uncertainty in the market, Mr Littlewood said Auckland Airport was currently
unable to provide underlying earnings guidance for the 2022 financial year.

Capital works will continue to advance existing transport infrastructure projects and
the delivery of core maintenance upgrades, with capital investment expected to be
between $250 million and $300 million in the 2022 financial year.

Mr Littlewood said Auckland Airport would remain focused on the recovery of the
tourism sector by supporting the Government in safely reopening the border, taking
a leading role in a public/private sector work programme to develop options for
future border settings.

“With New Zealand’s path to recovery ahead of us it is important that Auckland
Airport keeps delivering for our country. From safety protocols in the terminals to
upgrading our infrastructure, this is the work that will ensure we deliver the
strongest long-term prospects for New Zealand while helping to return our business
to profitable and sustainable growth.”

ENDS

For further information, please contact:

Media:
Libby Middlebrook
Head of Communications and External Relations
+64 21 989 908
libby.middlebrook@aucklandairport.co.nz

Investors:
Stewart Reynolds
Head of Strategy, Planning and Performance
+64 27 511 9632
stewart.reynolds@aucklandairport.co.nz

Note 1. Underlying profit / (loss) reconciliation

The table below shows the reconciliation between reported profit after tax and
underlying profit after tax for the years ended 30 June 2021 and 30 June 2020.


2021 2020
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
Reported
profit
$M
Adjustments
$M
Underlying
profit
$M
EBITDAFI per income statement
1

171.5 - 171.5 260.4 - 260.4
Investment property fair value increase
527.3 (527.3) - 168.6 (168.6) -
Property, plant and equipment revaluation
(7.5) 7.5 - (45.9) 45.9 -
Fixed asset write-offs, impairments and termination costs
1

- 2.5 2.5 - 117.5 117.5
Reversal of fixed asset impairments and termination costs
1

- (19.4) (19.4) - - -
Derivative fair value movement
(0.5) 0.5 - (1.9) 1.9 -
Share of profit of associates and joint ventures
21.1 (15.7) 5.4 8.4 0.8 9.2
Impairment of investment in joint venture
- - - (7.7) - (7.7)
Depreciation
(124.7) - (124.7) (112.7) - (112.7)
Interest expense and other finance costs
(94.0) - (94.0) (71.8) - (71.8)
Taxation (expense)/credit
(29.0) 45.9 16.9 (3.5) (2.9) (6.4)
Profit/(loss) after tax
464.2 (506.0) (41.8) 193.9 (5.4) 188.5

Notes
1. 2021 EBITDAFI includes a reversal of $19.4 million of previously expensed fixed asset write-offs, impairments and termination costs, partially reversing
the full $117.5 million of costs that were booked in 2020. 2021 EBITDAFI also includes $2.5 million of new fixed asset write-offs, impairments and
termination costs.

As set out in the table above, we have made the following adjustments to show underlying
profit after tax for the years ended 30 June 2021 and 2020:
• We have reversed out the impact of revaluations of investment property in 2021 and 2020.
An investor should monitor changes in investment property over time as a measure of
growing value. However, a change in one particular year is too short to measure long-term
performance. Changes between years can be volatile and, consequently, will impact
comparisons. Finally, the revaluation is unrealised and, therefore, is not considered when
determining dividends in accordance with the dividend policy
• Consistent with the approach to revaluations of investment property, we have also
reversed out the revaluations of the land class of assets within property, plant and
equipment in the 2021 and the land, infrastructure, and runways, taxiways and aprons
classes of assets within property, plant and equipment in 2020. The fair value changes in
property, plant and equipment are less frequent than are investment property revaluations,
which also makes comparisons between years difficult
• We have reversed out the impact of capital expenditure write-offs, impairments and
termination cost expenses and reversals for both the 2021 and 2020 financial years. In
response to the COVID-19 outbreak, some capital expenditure projects were abandoned
and fully written off and others were suspended and impaired. During the 2020 financial

year, some of these abandoned or suspended projects incurred contractor termination
costs which were provisioned for in 2020 with the actual amounts finalised during the 2021
financial year resulting in some reversals of 2020 expenses. The abandonment or
suspension of live capital expenditure projects is extremely rare and is the direct
consequence of COVID-19. These fixed asset write-off costs, impairments and termination
costs are not considered to be an element of the group’s normal business activities and
on this basis have been excluded from underlying profit
• We have also reversed out the impact of derivative fair value movements. These are
unrealised and relate to basis swaps that do not qualify for hedge accounting on foreign
exchange hedges, as well as any ineffective valuation movements in other financial
derivatives. The group intends to hold its derivatives to maturity, so any fair value
movements are expected to reverse out over their remaining lives. Further information is
included in note 18(b) of the financial statements.
• In addition, we have adjusted the share of profit of associates and joint ventures in both
2021 and 2020 to reverse out the impacts on those profits from revaluations of investment
property and financial derivatives.
• We have also reversed out the taxation impacts of the above movements in both the 2021
and 2020 financial years.

---

AKL
4NZ
Annual Report 2021

We are working
for New Zealand.
We are committed to
growing our country’s
success in travel, trade
and tourism, building
a vibrant economic
hub that will create
enduring value for
generations to come.
We are working for
Marlene and her family
Annual Report 2021 1

We are working
for New Zealand.
We are committed
to growing our
country’s success
in travel, trade and
tourism, building a
vibrant economic
hub that will create
enduring value for
New Zealand for
generations to come.
We are working
for New Zealand
businesses, large
and small
Our success is built on
New Zealand’s success.
Trade to and from
New Zealand has faced
significant challenges.
We are working
hard to keep our
country connected
to world markets.
2 Annual Report 2021Annual Report 2021 3

We are working
for the Berry family
New Zealand’s
health and safety
is our priority.
Our safe border
management
has helped to
keep our country
moving, supporting
domestic tourism
and the restart of
international travel.
4 Annual Report 2021Annual Report 2021 5

Welcome to our 2021
annual report — AKL | 4NZ
Welcome
This report provides a look inside one
year of disruption, resilience, and
adaptation for Auckland Airport as we
worked through the pandemic to keep
New Zealanders safely connected to each
other and the world.
In the past, Auckland Airport has published an
annual report, financial statements and a
stand-alone sustainability report. We know that
our people, shareholders, business partners and
the community are interested in our track record
across all of these aspects, which is why we have
combined our operational, sustainability and a
summary of our financial performance into one
report for the first time.
Using the combined approach, we have
prepared this report to align with our
sustainability framework: Purpose, Place, People
and Community. In addition to the financial
summary in this report, detailed financial
statements and notes can be found in the
separate financial report.
A second change to this annual report is the
inclusion of climate change-related information
following the guidelines of the Taskforce for
Climate-related Financial Disclosures (TCFD). We
have taken the step of publishing our approach to
carbon and related climate-risk in order to
prepare ourselves and our investors for
mandatory climate-related risk reporting in 2023.
The full climate change disclosure report can be
found on our website: www.aucklandairport.co.nz
Finally, we have incorporated elements of the
Integrated Reporting framework. We see
advantages in progressively adopting the
Integrated Reporting approach, which is focused
on explaining to shareholders how the company
creates value from invested capital and human
and natural resources.
We welcome your feedback on this report.
Please send any comments or suggestions to
investors@aucklandairport.co.nz.
ABOUT THIS REPORT
14
Sustainability goals
and targets
18
Who we are and
what we do
08
2021 Key numbers
and statistics
10
AWorking
for New Zealand
Chair and CE statement
1620
What matters most
Our material issues
Our business model
22
Creating value for our business,
shareholders, partners,
customers and New Zealand
Photography – Annual Report 2021
Richard Maher, Alan Gibson,
Jordan Tan, Ollie Dale, Mariska Steyn
and Helen Twose
Purpose
Kaupapa
30
Creating value for future generations
and protecting the planet
Place
Kaitiakitanga
38
Creating value for our employees
People
Whānau
44
Creating value for Auckland
Community
Hapori
48
Risk management
56
Shareholder and
company information
60
Remuneration
66
Financial summary
68
Corporate directory
6 Annual Report 2021Annual Report 2021 7

Revenue
$ 2 81.1m
50.4%
Domestic
5.84m
17.1%
International
559k
92.8%
International transits
43k
9 4 .1%
Operating
EBITDAFI
$171.5m
3 4 .1%
Reported profit
$464.2m
139.4%
Underlying profit/(loss)
($41.8m)
122.2%
Dividend per share
0.0c
Underlying earnings/(loss)
per share
(2.8) cents
119.0%
Net capex additions
1
$195.7m
47. 2%
Five-year average annual
shareholder return
4.5%
6.44m
Passengers
2021 /
key numbers
2021 /
key statistics
Health and safety
28.7%
above target
safety observations and
hazards reported
2,356
Auckland Airport became a
Quarantine Free Travel Airport
specified under the COVID-19
Public Health Response
Auckland Airport achieved the
Airport Council International’s
Airport Health Accreditation in
November 2020
Auckland Airport’s 200-plus
front-line employees completed
more than 5,600 nasopharyngeal
tests in FY21
Environment
Auckland Airport
Community Trust
$325,431
granted to community projects by the
Auckland Airport Community Trust to
support learning, literacy and life skills in
South Auckland
Diversity
37%
of overall workforce is female
62.5%
of Board is female
25%
of leadership team is female
43%
of senior leaders
1
are female
5%
of people leaders
2
are of
Maori/Pasifika ethnicity
1
Direct reports to the leadership team with
substantive roles
2
Staff members with at least one direct report
Setting sustainability pathway
In the 2021 financial year we updated our approach to sustainability,
identifying the four key pillars of Purpose, Place, People and
Community and setting new company sustainability goals and
targets including achieving Net Zero Carbon by 2030. See p14-p15
for further details.
Our performance in the
12 months to 30 June 2021
Interim 0.0¢Final 0.0¢
1 Net capital expenditure additions after $1.4 million of
write-offs and impairments
Purpose
Kaupapa
Place
Kaitiakitanga
People
Whānau
Community
Hapori
4,705(tonnes CO
2
e)
22%
Scope 1 and 2 carbon emissions
(tonnes CO
2
e)
129,514 (m
3
)
59%
Water usage (m
3
)
844 (tonnes)
18%
Waste to landfill (tonnes)
8 Annual Report 2021Annual Report 2021 9

Working for
New Zealand
Adrian Littlewood
Chief Executive
Patrick Strange
Chair
Nau mai and welcome
Auckland Airport is working for
New Zealand and throughout our
half-century of service, we’ve
connected our nation to the world,
linked our exporters to global
markets, brought travellers to our
shores and – in times of crisis –
welcomed Kiwis home.
The 2021 financial year has been like
no other on record for Auckland
Airport, but our commitment to doing
the best for our country remains
steadfast. This is all thanks to our
airport team.
We could not be prouder of the way
our team has responded to the
COVID-19 crisis. They have worked
hard to maintain New Zealand’s
airlinks to the world while doing all
they can to contain a virus that has
taken the lives of millions of people
around the globe. Our people
adjusted their approach where
necessary to always meet public-
health requirements for safe
operations even as the apparent risks
of COVID-19 and the protocols for
managing it were constantly shifting.
Auckland Airport would not be in the
position it is today if it weren’t for the
remarkable efforts of our team
through such uniquely trying times.
In recognition of this we will be giving
our permanent employees $1500 in
shares. We offer our continued and
sincere thanks to our employees
and to our shareholders for their
ongoing support.
Our strategy
In the 2020 financial year we outlined
a three-stage plan for through and
beyond the pandemic: Respond,
Recover, Accelerate. Through careful
financial management Auckland Airport
was able to regroup so we could plan
and begin our recovery in the best
possible shape. This included a
comprehensive approach to scaling
down the business: reducing operating
and capital expenditure; suspending or
deferring major infrastructure projects;
restructuring our bank debt; and raising
$1.2 billion of new equity from
shareholders.
The 2021 financial year has been another
difficult period for Auckland Airport.
International traffic remains extremely low
and we have gone further to reset the
business to ensure it reflects our new
operating environment. This includes
continuing to prioritise health and safety,
control costs and support our business
partners [see p24-p29]. We recognise
that many organisations have a stake in
Auckland Airport and our long-term
success will be dependent on the
stability of our relationships and working
closely together on the recovery.
Our recovery pathway
To chart a course through recovery, we
established two key areas of focus for
the business in the 2021 financial year:
• Recovery of the tourism sector,
including supporting the Government
in safely reopening the border for
quarantine-free travel with low-risk
countries
• Resetting our infrastructure
development plan, ensuring capital
works are aligned with the recovery in
aviation and forecast aeronautical
demand and financial performance.
An airport is a complicated system with
many moving parts. We have taken a
partnership approach with the airport
community of airlines, border agencies,
essential service providers (retail and
food and beverage), government
departments and ground operators,
working together to ensure the reopening
of borders was handled as safely and
effectively as possible.
This means Auckland Airport was able to
assist the Government in its decision-
making with an understanding of the
practical needs of the aeronautical
sector. With our aviation partners and
government agencies on both sides of
the Tasman, we helped to design a
risk-based quarantine-free travel system
to support airlinks between New Zealand
and other low-risk countries. This work
underpinned the plan supporting
quarantine-free travel with Australia and
the Cook Islands, and involved Auckland
Airport splitting the international terminal
into two areas to protect the safety of
travellers, airport workers and our
community [see p24-p25].
This work was a huge achievement for
our team, not only in keeping people safe
but also in steering our organisation
towards our recovery path. By 30 June
2021, 316,000 international and transit
passengers had passed through the split
terminal since it went live on 16 April
2021 – still a fraction of pre-pandemic
international travel numbers but a sign
that we are moving forward.
The opening of quarantine-free travel
with Australia and then with the Cook
Islands marked our transition into the
‘recover’ stage of our strategic plan.
The suspension of the trans-Tasman
bubble and the Cook Islands bubble
serve as a strong reminder that higher
vaccination rates will be necessary to
support the recovery of international
travel. As vaccination rollouts gather
momentum over the coming months
we expect demand for international travel
to gradually build during the 2022
calendar year.
We were also encouraged by the return
of domestic travel in the 2021 financial
year, achieving 78% of pre-COVID-19
levels in the final quarter. We continue to
take great care in creating protocols that
support safe air travel at all alert levels,
including during this week’s level 4
lockdown.
Infrastructure development
When COVID-19 began its march around
the globe, our team moved quickly to
suspend and preserve work on our
capital projects so these could be
restarted when conditions made it
possible to do so.
The low-demand environment created by
COVID-19 has provided a unique
opportunity for us to bring forward
activities focused on the upgrade and
renewal of core infrastructure. Taking
advantage of reduced air and road traffic
and to minimise disruption, in the 2021
financial year we invested:
• $26 million in runway slab
replacement and in pavement
upgrades to the airfield
• $69 million in upgrades to our core
roading network and construction of
high-occupancy vehicle lanes along
State Highway 20B
• $7 million in upgrades to the airfield
fuel network.
Recognising the uncertainty around
future aeronautical demand, our people
also carried out significant work in the
2021 financial year to reprioritise and
reset our infrastructure development
programme.
Our refreshed plan reconfirms our
commitment to our key anchor
infrastructure projects, but restarting
some of these developments will be
determined by the longer-term recovery
in aviation and we will align construction
with growth in demand [see p32].
We have reconfirmed our priority
development as well: a new purpose-
built domestic hub merged into the
eastern end of the international terminal,
providing a much-improved customer
experience for travellers. During the 2021
financial year, we consulted with border
agencies and airlines to design a
development pathway for the
$1 billion-plus facility [see p32], which is
supported by Air New Zealand and the
Board of Airline Representatives of
New Zealand (BARNZ).
We will take advantage of the current low
passenger environment by progressing
enabling works in early 2022 to demolish
legacy infrastructure east of the
10 Annual Report 2021Annual Report 2021 11

international terminal to make way for
the development.
Meanwhile, we are also continuing to
invest in the existing domestic terminal
to increase its resilience and service
level while the new facility is being built.
Creating value: Our purpose,
place, people and community
From front-line staff in the terminals, to
professional support workers and
maintenance teams, our organisation is
run by people who want to do the right
thing. They are guided by strong values
and a sincere belief in Auckland
Airport’s place at the heart of our city
and community. They share a desire to
be part of an organisation that is a good
neighbour, a valued citizen and is
respectful of its environment.
In the 2021 financial year we updated
our approach to sustainability,
identifying the four key pillars of
Purpose, Place, People and Community
and setting some new company
sustainability goals and targets, including
being Net Zero Carbon by 2030. By
embedding sustainability across all
aspects of our business, our
commitment is to protect, preserve and
create value for the benefit of our
stakeholders and future generations.
Results
Auckland Airport is a long-standing
multi-generational business and we
remain confident about our future,
but our 2021 financial year results reflect
the difficult operating conditions we
currently face.
In the year to 30 June, revenue was
down 50.4% to $281.1 million, while
earnings before interest expense,
taxation, depreciation, fair value
adjustments and investments in
associates (EBITDAFI) was down 34.1%
to $171.5 million.
Total reported profit after tax was up
139.4% to $464.2 million, underlying
net profit fell by $230.3 million to a loss
of $41.8 million, resulting in an
underlying loss per share of 2.8 cents for
the 2021 financial year. No final dividend
will be paid in line with our banking
covenant waivers.
Our property division continued to
perform strongly in the 12 months to 30
June [see p34-p35]. Investment property
rent roll has increased 12.5% to $117
million, our portfolio value has grown
29% to $2.6 billion, and our weighted
average lease term has strengthened to
9.7 years.
In the 2022 financial year, capital
expenditure is expected to be between
$250 million and $300 million. Looking
ahead, while operating expenses will
remain well below levels seen in the 2019
financial year, we are forecasting a
significant increase in operating
expenditure in the 12 months to 30 June
2022 to facilitate the following:
• The expected increase in international
travel in the 2022 calendar year as
vaccination rates rise
• An intensive repairs and maintenance
programme in the international
terminal while traveller numbers
are low
• Ensuring employee numbers are able
to support quality delivery of our
compliance and strategic activities.
Airline consultation
Our regulatory framework requires us to
begin consultation with airlines on new
aeronautical pricing for 2023 to 2027 by
the end of the 2022 financial year.
However, we are consulting with airlines
regarding a potential deferral of the final
pricing decision until we see a stronger
recovery in aeronautical activity and there
is more certainty on the future trajectory
of growth in travel.
Looking ahead
With New Zealand’s path to recovery
ahead of us, it is important that Auckland
Airport keeps delivering for our country.
From safety protocols in the terminals to
upgrading our infrastructure, this is the
work that will ensure we deliver the
strongest long-term prospects for
New Zealand while helping to return
our business to profitable and
sustainable growth.
We are planning an exciting expansion
to our precinct retail business [see p34]:
the construction of a fashion outlet
centre on the edge of the airport
offering a net lettable area of more than
23,000m
2
. Purpose-built fashion outlet
centres are well-established at airports
internationally and we have been
exploring the concept for many years as
part of our long-term planning. We
believe it will be a great addition to the
airport’s eco-system.
Auckland Airport’s performance is
strongly linked to passenger volumes,
so our recovery will be greatly
influenced by the return of international
travel. We continue to adopt more
conservative planning assumptions than
those of the International Air Travel
Association (IATA), which is forecasting
global travel to fully recover and exceed
pre-pandemic levels in 2023. We
believe a full recovery might take longer
and we are also expecting further
volatility in domestic and international
aviation markets in the short term.
Because of uncertainty in the market,
we are currently unable to provide
underlying earnings guidance for the
2022 financial year.
Lastly, Justine Smyth will stand down
as a director at the annual meeting later
this year, a role she has filled since
2012. We sincerely thank her for her
outstanding contribution.
Auckland Airport’s journey through
COVID-19 is not over yet, but thanks to
the resourcefulness and determination
of our people and the ongoing support
of our community, customers and
investors, we can be confident of the
course we have set.
Patrick Strange
Chair
Adrian Littlewood
Chief Executive
Underlying net profit / (loss)
($41.8m)
122.2%
The directors and management of
Auckland Airport understand the
importance of reported profits meeting
accounting standards. Because we
comply with accounting standards,
investors know that comparisons
against different companies can be
made with confidence and that there is
integrity in our reporting approach.
However, we believe that an underlying
profit measurement can also assist
investors to understand what is
happening in a business like Auckland
Airport, where revaluation changes
can distort financial results or where
one-off transactions, both positive and
negative, can make it difficult to
compare profits between years.
For several years, Auckland Airport
has referred to underlying profit
alongside reported results. We do so
when we report our results, but also
when we give our market guidance
(where we exclude fair value changes
and other one-off items) or when we
consider dividends and our policy to
pay 100% of underlying net profit after
tax (excluding unrealised gains and
losses arising from revaluation of
property or treasury instruments and
other one-off items).
In referring to underlying profits, we
acknowledge our obligation to show
investors how we have derived this
result. The reconciliation between
underlying profit and reported profit for
the current reporting period can be
found on p67.
Chief Executive’s farewell
Earlier this year, I announced my
decision to step down as chief
executive.
It’s been an absolute honour to lead
Auckland Airport for almost nine
years through times of incredible
growth and more recently during a
stern test of our resilience.
I never imagined my final year in this
role would be marked by the closing of
New Zealand’s border, but I wouldn’t
have wanted to be anywhere else during
these difficult times and I have been
constantly impressed by the commitment
and resilience of our team.
My sincere thanks go to everyone who
helped get the business through the
challenges of the past 19 months. I also
want to acknowledge my gratitude to
employees, Board members,
shareholders, business partners and our
community for their support throughout
my time at Auckland Airport. I’ll be
staying in the role until later this year
while the recruitment process continues.
As aviation and tourism move into a
recovery phase and our substantial
development programme gears up again
the years ahead will be really exciting for
Auckland Airport. I look forward to
watching the business rebuild and
grow again.
Adrian Littlewood
Chief Executive
The Board is currently part-way through
an international search for a new chief
executive, to be appointed later this year.
By embedding
sustainability across all
aspects of our business,
our commitment is to
protect, preserve and
create value for the benefit
of our stakeholders and
future generations.
12 Annual Report 2021Annual Report 2021 13

85%
CUSTOMERS RATE THEIR
OVERALL EXPERIENCE AS
‘EXCELLENT’ OR ‘VERY GOOD’
BY 2030
SCOPE 1 AND 2
CARBON EMISSIONS
BY 2030
40%
OF EMPLOYEES
PARTICIPATING IN
COMMUNITY VOLUNTEER
PROGRAMME BY 2030
100%
OF PROCUREMENT ACTIVITY IS
ALIGNED WITH SUSTAINABLE
PROCUREMENT GUIDELINES
ISO20400 BY 2030
20%
OF PEOPLE LEADERS OF
MAORI/PASIFIKA
ETHNICITY BY 2030
Ethnicity
WORKFORCE REFLECTIVE
OF THE ETHNICITY OF
NEW ZEALAND BY 2030
TSR
ROLLING 3 YEAR TOTAL
SHAREHOLDER RETURN
EXCEEDS COST OF
EQUITY BY 1%
GENDER BALANCE
ACROSS AUCKLAND
AIRPORT’S BOARD,
LEADERSHIP TEAM AND
ITS DIRECT REPORT
POPULATIONS BY 2025
40 40 20
Purpose
Kaupapa
People
Whānau
Place
Kaitiakitanga
Community
Hapori
Our long-term ambitions
Our aspiration is to create natural,
social, cultural and wider-economic value
as well as direct economic value. We will
know we are there when:
Around the world we are a good global
citizen who our peers look to for
guidance and direction, and investors
seek out based on our financial
performance, risk management,
environmental, social and governance
(ESG) performance, and the creation of
long-term value.
In our country we are recognised as an
important New Zealand business that
leads the way in transforming our
business model to create non-financial
value as well as direct economic value for
our shareholders. We are known as a
responsible business that is fair and open.
Our neighbours are proud that we are
part of their community. We grow and
prosper together with a focus on
employment, education and the
environment. We use our place, position
and partnerships to recognise the
importance of, and to work alongside,
mana whenua, and to improve the
well-being of the local and wider
New Zealand communities.
At home (our employees, tenants and
customers) we have the benefit of a
diverse workforce and an inclusive
culture and we continue to be a place
where others aspire to work. We are
creating a vibrant business and
community hub where other businesses
choose to be.
Time to set some new
sustainability goals
20%
REDUCTION IN
POTABLE WATER
USE BY 2030 FROM
2019 LEVELS
20%
REDUCTION IN
WASTE TO LANDFILL
BY 2030 FROM
2019 LEVELS
2.
3.
4.
1.
Place
Kaitiakitanga
Creating value for future
generations and protecting
the planet
People
Whānau
Creating value for
our employees
Community
Hapori
Creating value for Auckland
Purpose
Kaupapa
Creating value for our business,
shareholders, partners, customers
and New Zealand
As a long-term multi-generational business, it is natural
for us to take a long-term approach to our place in the
world, the New Zealand economy and the local
environment and community in which we operate.
Auckland Airport was one of
New Zealand’s early adopters of
sustainability principles and has made
considerable progress in the areas of
emissions reductions, energy savings
and waste management. With these
objectives largely met, we are lifting our
sights and challenging ourselves again
by setting new sustainability targets,
setting out how we will create value for
our people and communities; contribute
to the economy; and help tackle global
challenges such as climate change.
As our business steadily recovers from
the impact of COVID-19 the challenge is
to ensure Auckland Airport is fit for the
future and positioned to:
• Identify and successfully manage
emerging risks and opportunities
• Meet regulatory requirements and
stakeholder expectations
• Create environmental, social, cultural
and wider-economic value as well as
direct economic value.
To understand our future challenges and
where we should focus our energies over
the next decade, we embarked on a
four-stage process. This process
comprised a review of the wider business
environment and relevant trends, a
materiality assessment to understand
what matters most to our business and
to our communities, a benchmarking
review and, finally, development of a new
sustainability strategy.
How we talk about sustainability
Our overarching business strategy is
aligned with our sustainability strategy
which has four key pillars: Purpose,
Place, People and Community. It is also
framed by Auckland Airport’s guiding
star, the single ambition that unites and
drives us as we work to safely connect
New Zealand to the world:
We are working for New Zealand. We are
committed to growing our country’s
success in travel, trade and tourism,
building a vibrant economic hub that will
create enduring value for New Zealand
and generations to come.
2030
Net Zero
TARGETS
YEAR ON YEAR
IMPROVEMENT IN NUMBER
OF HIGH-QUALITY SAFETY
OBSERVATIONS PER
EMPLOYEE
Safety
Apprenticeship
CREATE A PATHWAY FOR
WOMEN, MAORI AND PASIFIKA
INTO TRADES, WITH 30% OF
TOTAL TRADE STAFF SOURCED
FROM A TARGETED
APPRENTICESHIP SCHEME
BY 2030
14 Annual Report 2021Annual Report 2021 15

What matters most
In 2020 we carried out a comprehensive
review of the issues and topics that
matter most to our business and our
stakeholders. We looked at matters that
were materially important and to those
issues that we, as a business, have
influence over. This review was
undertaken just as COVID-19 was
beginning to impact New Zealand and it
was completed August 2020 following
the long autumn lockdown.
Our material issues
Auckland Airport considers material
issues as those that are important to us
and our many stakeholder groups;
those that we can influence; and the
environmental or social issues that we
have an impact on.
16 Annual Report 2021Annual Report 2021 17
Responsible
employer
We strive to be a good
employer. We work hard to
create a diverse and
inclusive environment where
people want to work,
providing new opportunities
to develop, support and
empower our people.
This is especially important
following the restructuring
of our workforce after the
outbreak of COVID-19.
Climate change risk
and adaptation
We acknowledge that the
aviation sector contributes to
climate change and are
working with our aviation
partners to reduce this
impact. The effects of
climate change, including
rising sea levels and
unpredictable weather
patterns will impact our
business, community,
country and the planet.
Minimising our
environmental footprint
As a large-scale business we
work hard to reduce the
impact our operations have
on the surrounding
environment by implementing
best practice environmental
controls and ongoing
monitoring of our
environmental performance.
In addition, we implement
resource use efficiency and
waste minimisation
measures. For new
infrastructure we draw on
sustainable design to guide
our decision-making through
the planning, design and
construction phases.
Community and mana
whenua involvement
Auckland Airport’s location is
of historical and cultural
significance to Māori.
Building strong and enduring
relationships with mana
whenua is important to us.
We also strive to be a good
neighbour and play an active
part in creating value for the
whole community.
1. 2. 3. 4. 5. 6. 7. 8.
Health, safety
and security
Auckland Airport is a Port of
First Arrival and major
infrastructure operator;
therefore, the health, safety
and security of our people,
airport workers, customers
and visitors to the precinct is
our first priority. We have a
key role to play in protecting
New Zealand and its people
from diseases and
biosecurity threats,
something that has been
highlighted in the 2021
financial year with the
outbreak of COVID-19 and its
impact on our operations,
people and customers.
Wider economic
contribution
As New Zealand’s largest
international airport we are a
key driver of travel, trade and
tourism, boosting the
country’s economy as well
as employment in the
Auckland region. As the
border gradually re-opens
we will play a vital role in
helping the economy and
community to re-build.
Customer experience
The welcome and farewell
experience travellers receive
when they arrive at or depart
from New Zealand is
overseen by Auckland
Airport. We are committed to
making journeys better for
our guests; listening to and
responding to their needs;
and delivering infrastructure
in the right place at the
right time.
Aircraft noise
We continue to work with our
airline and air navigation
partners to manage aircraft
noise and the impact it has
on the community. Although
aviation activity has
decreased during the past
year, the impact of aircraft
noise on people living and
working beneath flight paths
is ongoing and this was
amplified by the return of
flights after lockdowns in
2020 and 2021. Auckland
Airport funds a
comprehensive noise
mitigation programme to
reduce the impact of aircraft
noise on the community.

Who we are
and what we do
Auckland Airport is New Zealand’s
largest owner and operator of an
airport, providing infrastructure
and services to facilitate the
movement of aircraft, passengers
and cargo. Prior to the outbreak of
COVID-19, over 75% of international
passengers arrived at or departed
from New Zealand through
Auckland Airport, generating more
than 21 million domestic and
international passenger
movements. Traditionally, the
aeronautical business segment
contributes approximately 50% of
total company revenue.
Today Auckland Airport is still the busiest
airport in the country with 6.4 million
passenger movements, the vast majority
being domestic travellers.
Auckland Airport’s consumer segment
includes the provision of amenities for
retail businesses both in the terminal and
within the surrounding precinct. It also
includes the operation of car parking
facilities and two hotels on the airport
precinct, the Novotel and Ibis, and digital
channels. These activities enhance our
customer proposition by providing
important services in and around the
airport that are valued by customers
travelling through the precinct.
The investment property portfolio has
grown strongly in recent years, through
developing and managing in excess of
500,000m
2
of new facilities ranging from
logistics and distribution warehouses to
office buildings. This property portfolio is
now valued at $2.6 billion, with an annual
rent roll of $117 million. Auckland Airport
has 185 hectares available for investment
property development.
Our value creation model outlines how
we create value for our key stakeholders
through our business activities, and
identifies the inputs that we rely on to
enable us to deliver that value and meet
our strategic objectives.
We own and operate Auckland Airport
14
166,441
T
99%
$
117m
24/7441
20,000
international airlines
servicing 27
destinations in FY21
1

of cargo in FY21
4
Real estate average
occupancy rate
5
Rental income per annum
Service providing aviation,
fire, medical and marine
search and rescue services
Employees with diverse
skills and capabilities
people typically employed
on airport precinct
120
Terminal-
based retail
tenants
• 31.4% of total revenue
from aeronautical
income
• 40km roads
We provide important services to consumers,
our tenants and their employees
We are a substantial employer
and enabler of employment
• 145 business tenants
outside the terminal
• Enhanced digital shopping
services introduced in
response to COVID-19
• Two hotels
• Car-parking facilities with
over 13,000 car parks
We are a property developer and owner
$2.6b
Real estate, including logistics and distribution
warehouses, office buildings, and shopping centres
• $415 million development
completed in FY21
• 185ha available for
development
6.4m
Passenger
movements overall
in FY21
2
98,689
3
Aircraft
movements
in FY21
3
• 1.4 million m
2
of runway
and pavement
• Two terminals with over
170,000m
2
of floor area
1 29 airlines serving 41 international destinations pre-pandemic in FY19
2 21.1 million in FY19
3 178,771 in FY19
4 190,905 tonnes in FY19
5 Landside property portfolio
18 Annual Report 2021Annual Report 2021 19

Auckland Airport’s business model
GUIDING STAR
We are working for
New Zealand. We are
committed to growing
our country’s success
in travel, trade and
tourism, building a
vibrant economic hub
that will create
enduring value for
New Zealand and
generations to come.
Strategic
direction
Respond, Recover,
Accelerate
SUSTAINABILITY
The way we create value
is shaped by our
approach to
sustainability
EXTERNAL
ENVIRONMENT
The risks and
opportunities in our
operating environment
shape the way we
conduct our business
Negative
impact of
COVID-19 on
aviation
Capacity
limits of the
infrastructure
sector
Physical and
transitional
climate
change risks
Ongoing
regulatory
oversight
Increasing
stakeholder
expectations
Technological
advancements
Globalisation
Purpose
Kaupapa
Creating value
for our business,
shareholders,
partners, customers
and New Zealand
People
Whanau
Creating value for
our employees
Community
Hapori
Creating value
for Auckland
Place
Kaitiakitanga
Creating value for
future generations
and protecting the
planet
Inputs
OUR FINANCIAL CAPITAL
• Debt, equity
• Profit
• Credit rating
OUR ASSETS
• Airfield and associated
aeronautical buildings
• Commercial property
• Roading, transport
& utilities
OUR SKILLS AND
KNOWLEDGE
• Established governance
framework and operating
model
• Project delivery
methodology
• Data & business intelligence
systems, involving IT
infrastructure & crisis
recovery systems
OUR EMPLOYEES
• 441 employees with diverse
skills and capability
• Training for all staff
• Values-based culture
OUR COMMUNITY AND
RELATIONSHIPS
• Relationships with broad
range of stakeholders
• Brand & reputation
• Recognition of mana
whenua values
OUR ENVIRONMENT
• Land for current and
future growth
• Airspace
• Water, renewable
and non-renewable
energy utilised
Business ActivitiesOutputs and outcomes
VALUE DELIVERED FOR SHAREHOLDERS
• Financial performance, return on investment
and dividends
ENDURING VALUE FOR NEW ZEALAND
• Active engagement in boosting New Zealand
travel, trade and tourism
• Trigger-based infrastructure development plan in
place to ensure sufficient capacity when required
Attracting airlines servicing a variety of ports
• Keeping our country safe from biosecurity
and health risks
• Supporting sustainable airline routes
WIN-WIN RELATIONSHIPS WITH OUR
CUSTOMERS AND STAKEHOLDERS
• Being our passengers’ favourite airport
• High occupancy and tenure in our property
portfolio
• Constructive partnerships with mana whenua
A PROUD, DIVERSE, SAFE AND
MOTIVATED WORKFORCE
• Strong employer proposition including
remuneration, benefits and development
• High calibre, diverse workforce with a variety
of skills, thoughts and capability
• Zero Harm health, safety and wellbeing culture
IMPROVING THE WELLBEING OF OUR
LOCAL COMMUNITY
• Constructive partnerships focused on education,
employment and the environment
• In kind and financial support for local
community initiatives
• Recognition of mana whenua values
KAITIAKITANGA FOR THE ENVIRONMENT
• Reduced footprint across waste, water, energy
and carbon
• Aircraft noise impact on the local community,
mitigated with noise abatement packages
• No environmental breaches which result in
prosecution under the relevant legislation
20 Annual Report 2021Annual Report 2021 21

Purpose
Kaupapa
Auckland Airport is an
organisation that strives to
create value for New Zealand no
matter what the circumstance.
Ordinarily, the efficient operation of an
airfield relies on planning and order: a
carefully designed network of systems
and processes which comes together
through the collaborative commitment of
all the organisations that make up
Auckland Airport.
But when the pandemic arrived,
everything changed almost instantly.
Since February 2020, COVID-19 has
brought constant upheaval to almost
every part of our business, but our
team’s determination to get the job done
and go the extra mile for New Zealand
has never faltered. In difficult
circumstances they have continued to
keep the terminals and airfield safe and
secure, working through lockdowns as
essential workers and fronting up for
fortnightly nasopharyngeal tests for
months on end to keep themselves and
the community safe.
“COVID-19 created the perfect storm for
our organisation and tested the character
of our staff like no other,” said Anna
Cassels-Brown, Auckland Airport’s
General Manager Operations.
“I always knew we had an outstanding
team here at Auckland Airport, and what
they’ve had to deal with to keep the
operation running smoothly through
every extreme of the COVID pandemic,
as well as keep themselves, whānau and
community safe from COVID-19 is frankly
incredible.”
Creating value for our business,
shareholders, partners,
customers and New Zealand
22 Annual Report 2021Annual Report 2021 23

Adapting airport operations to
meet New Zealand’s needs
As COVID-19 sent much of the world into
lockdown, the virus quickly pushed
Auckland Airport in new and challenging
directions.
“The world changed overnight and we
had no choice but to change with it,”
Anna said. “Safety and security always
comes first for us. We recognised early
on that we would need to make big
changes inside the international terminal
in order to safely reconnect families and
bring international travellers home,”
Anna said.
In 2020, the team at Auckland Airport
began to re-imagine how our existing
international terminal infrastructure could
be repurposed to achieve two goals:
• The separation of incoming travellers
potentially carrying COVID-19 into the
country, from departing passengers
and airport workers, recognising the
key role airports play as a first line of
defence against the spread of the
virus
• Enabling New Zealand to open its
borders again to quarantine-free travel
with other low-risk countries, helping
to reconnect whānau and support
New Zealand’s economic rebuild, and
marking a critical first step in
Auckland Airport’s recovery.
We could not achieve this alone. A
constellation of organisations deliver
aviation services at Auckland Airport and
significant operational changes would
need everyone to work together.
“Well ahead of travel bubbles with
Australia and the Cook Islands we were
working closely with government border
and health agencies, airline partners,
ground handlers, cleaning companies
and transport operators to rethink the
future of travel at Auckland Airport,”
Anna said.
The team envisaged a bold solution: the
development of two separate and
virtually self-sufficient international
terminals contained within one existing
building, including constructing a brand
new arrivals processing area out of a
ground-floor international zone previously
used for bus operations.
Putting customer care first
Auckland Airport’s Operations
Performance Delivery Manager Mark
Wilson, who jointly led the project, said
teams prioritised travellers’ comfort and
health and safety while rethinking every
detail: how to reorganise the layout inside
the terminal to prevent high-risk travellers
from interacting with low-risk travellers;
providing access to food and drink to
high-risk travellers transiting through New
Zealand; supplying personal protective
equipment (PPE) for staff; what to do
Almost half of Auckland Airport’s
staff work directly at the border, the
front-line of New Zealand’s efforts to
keep the pandemic out of the country.
With those staff required to have
regular tests for COVID-19, the airport
was quick to recognise the value of
reliable, non-invasive testing methods
for keeping the community safe.
That’s why Auckland Airport
co-funded New Zealand business
Rako Science to trial a fast-
turnaround, accurate saliva test,
providing a site in the international
terminal for airport workers to
take part.
Auckland Airport’s Health and Safety
Advisor John Vazey joined the trials.
“I took part in the trials because a
reliable, non-invasive saliva test can
help reduce the risk of outbreaks in
the community by increasing the
frequency of testing.
“If we’re going to be dealing with this
virus for a long time, we’ll need easy,
frequent and cost-effective ways to
test large workforces,” he said.
Throughout the pandemic, Auckland
Airport has followed the Ministry of
Health’s protocols and guidelines to
keep the community safe, and
welcomes the Government’s recent
decision to introduce saliva testing for
border workers. Staff who took part in
the saliva tests did so on a voluntary
basis and the saliva tests did not
replace the nasal-swab testing
required by the Government’s
border policies.
INNOVATION IN
SALIVA TESTING
with baggage; and how to manage
physical distancing.
“We always work closely with our
stakeholders but this was just next level,”
Mark said. “We repeatedly trialled the
terminal split putting 14 flight arrivals
through the new process to ensure we
got it right. We were on a mission to get
this set up and working well for New
Zealand and everyone brought that
sense of pride to the project.”
Auckland Airport also worked hard with
stakeholders to set the standard for
COVID-19 health and safety measures,
becoming a Quarantine-Free Travel
Airport specified under the COVID-19
Public Health Response Act 2020 in April
2021 [see sidebar story, p24]. Auckland
Airport also achieved Airport Council
International’s Airport Health
Accreditation in November 2020.
The split terminal went live on 16 April
this year, just ahead of the trans-Tasman
quarantine-free travel arrangements
being put into place.
“To witness all of those family reunions at
the quarantine-free arrivals gate, after so
many months of hard work and planning:
it was a wonderful moment for the entire
airport team,” Mark said. “It’s
disappointing to see the pause in the
bubble but we’re hopeful it won’t be long
before we see travel kickstart again with
Australia.”
Today the eastern side of the
international terminal building, including
the food court and retail area, forms
Zone A: Safe Travel Area and is used by
quarantine-free arrivals and all
departures. Passengers do not mingle
with those arriving from high-risk
countries, and their experience of the
terminal is very similar to what travellers
were familiar with pre-COVID-19.
A second self-contained zone on the
international terminal’s western side
forms Zone B: Health Management Area,
a separate, enclosed airport arrivals
processing area, with passengers
processed by border agencies before
being taken to their managed isolation
facilities. Auckland Airport has ensured
the care and comfort of transit
passengers in Zone B, providing them
with access to food and essential
supplies, and customer welfare checks.
Craig Chitty, New Zealand Customs
Service Manager Passenger Operations
at Auckland Airport, said: “The
challenges faced by border sector
agencies, Auckland Airport, and the
wider aviation industry was
unprecedented. I have never been
involved in such an effective working
relationship with public and private sector
groups before.
“The expertise and ideas each party
could bring to the table quickly
established a working model that could
easily adapt to changing needs. What it
demonstrated to me was that with good
people and good communication you
can achieve amazing outcomes”.
What it demonstrated
to me was that with
good people and good
communication you
can achieve amazing
outcomes.
Craig Chitty
New Zealand Customs Service
Scaling down the business
At the same time as adapting the airport
operation, Auckland Airport has been
focused on keeping the company going
through the most difficult period of its
history and setting it up for recovery in
the long term.
“Like everyone in aviation it’s been quite
a ride for Auckland Airport, and we’ve
fought hard to get our organisation back
on the right path,” said Auckland
Airport’s chief financial officer Phil
Neutze. “Quarantine-free travel to
Australia and the Cook Islands marked
an important milestone in our recovery,
but as we have seen with the current
suspension of these arrangements, the
return of international travel remains
uncertain in the short-term and low
international passenger volumes continue
to have an impact across our business.”
The strong cost controls that Auckland
Airport introduced following the outbreak
of COVID-19 continued throughout the
2021 financial year, with core operating
expenses reduced significantly in the
12 months to 30 June.
Maintaining a prudent approach to
financial management has remained a
priority and in June 2021 the remaining
$425 million US Private Placement
(USPP) borrowings was repaid. This,
combined with the cancellation of
cross-currency hedges associated with
the USPP borrowings and some future
fixed interest rate hedges, means
Auckland Airport’s 2022 financial year
interest expense is expected to reduce
by more than $10 million.
In August 2021, banks supported
Auckland Airport’s request to renew
nearly $700 million of debt facilities due
to mature between January and April
2022. From January 2022, Auckland
Airport has agreed that the interest cover
covenant currently waived by lenders will
convert from an EBIT-based measure to
a new EBITDA-based measure. Phil said
taking these steps had renewed
Auckland Airport’s confidence in its
ability to fund the planned infrastructure
programme for the 2022 financial year
and beyond.
24 Annual Report 2021Annual Report 2021 25

88%
of New Zealand’s airfreight
cargo passed through
Auckland Airport
Auckland Airport’s aeronautical
business in the time of COVID-19
The recovery of domestic travel
continued into the 2021 financial year,
with passenger numbers reaching 5.8
million, 17% down on the previous year.
In the three months to 30 June, domestic
passenger numbers reached 78% of the
equivalent period in 2019.
Overall, total domestic and international
travel was down 58% on the previous
year with 6.4 million passenger numbers.
Unsurprisingly, the 2021 financial year
had the lowest number of international
passengers since 1972, with 0.6 million
international passengers including
transits passing through the international
terminal in the 12 months to 30 June
2021 (down 93% on the previous
financial year).
Scott Tasker, Auckland Airport’s General
Manager Aeronautical Commercial, said
the airport was pleased by the early
launch of quarantine-free travel to
Australia and the Cook Islands. However,
demand had been patchy with
passengers wary about being caught up
in overseas lockdowns and the
suspensions of the trans-Tasman bubble
in July and the Cook Islands bubble in
August. In the two and a half months to
30 June 2021, a total of 264,000
passengers travelled to and from
Australia and 14,000 passengers
travelled to and from the Cook Islands.
“We believe the return of trans-Tasman
travel and further recovery in the
international market will be driven by the
uptake of vaccinations with new airlinks
most likely to be re-established with
countries that have advanced vaccination
roll-outs, such as Singapore,” Scott said.
While border restrictions impacted the
viability of many international air routes in
the 12 months to 30 June 2021, three
new trans-Tasman routes were
announced: Air New Zealand introduced
an Auckland to Hobart service and
Qantas launched Auckland services to
the Gold Coast and Cairns.
Our international network currently
connects Auckland Airport and New
Zealand to 27 Asia, Pacific and Middle-
Eastern cities operated by 14 airlines
ensuring that essential travel and cargo
flows continue.
Scott said the Government’s international
air-freight capacity support scheme has
continued to play an important role in
connecting New Zealand to its
international markets. The cargo capacity
and connectivity at Auckland Airport has
ensured that essential imports and
high-value goods exports have continued
to flow in and out of New Zealand. In the
2021 financial year 166,000 tonnes of
international cargo passed through
Auckland Airport, 88% of New Zealand’s
airfreight cargo.
The longer-term recovery
Beyond the airport precinct, Scott said
Auckland Airport has been thinking
longer term, helping to develop a
recovery path for all of New Zealand
which relies heavily on commercial
aviation.
“We’ve been working with our airline
partners and tourism industry leaders to
develop plans to revive global markets as
the recovery continues, as well as
supporting the New Zealand Government
to prepare for a recovery in international
travel as it becomes safe to do so.”
Scott said much of this work focused on
innovation, with two key projects carried
out in the 2021 financial year:
• Trialling new saliva-based testing
technologies for staff working at the
border to help test the concept and
to support the evolution of New
Zealand’s COVID-19 response [see
sidebar story on p24]
• Auckland Airport played a leading
role, alongside partner airports,
airlines and government agencies on
both sides of the Tasman, in
designing, testing and implementing a
quarantine-free travel system that has
ultimately enabled a safe restart of
travel between New Zealand, Australia
and the Cook Islands.
Auckland Airport continues to work
proactively with airline partners to
maintain the future connectivity of
New Zealand’s international network for
both the travel market and cargo flows.
“Auckland Airport’s airline customers
remain engaged in the New Zealand
market because Auckland and
New Zealand’s pre-pandemic passenger
and cargo demand growth were strong
and most airlines experienced
commercial success.
“Tourism New Zealand research
shows that consideration for travel
to New Zealand has continued to
strengthen in key offshore visitor source
markets during the pandemic; for
example, in the US market the number
of active potential travellers to
New Zealand has increased by 50%
from 2018 to 2021.”
Scott said the recovery of New Zealand’s
international air connections, providing
travellers with choice in airlines,
convenient flight routings and affordable
airfares, is highly dependent on the
clarity and timing of changes to New
Zealand’s border settings early in the
2022 calendar year. The recovery in
New Zealand’s air cargo capacity and
connectivity, required for high-value
exports and essential imports, is
also dependent on changes to
border settings.
“Clarity in timing is important to ensure
we retain the confidence of airlines to
keep New Zealand firmly in their network
and fleet deployment plans as the
international aviation industry starts to
recover global connectivity,” Scott said.
26 Annual Report 2021Annual Report 2021 27

Our family-owned
business of 35 years
would not have made
it through 2020 without
the support of the
Auckland Airport
retail team.

Sam Hulton, Mountain Jade
Thank you note received by
Auckland Airport during the
2021 financial year
Technology
Auckland Airport made significant
investment in cyber security in the 2021
financial year to keep our systems,
infrastructure and information safe.
Jonathan Good, Auckland Airport’s
General Manager Technology and
Marketing, said multiple new security
protections had been introduced to our
end-points (remote devices such as
laptops and smartphones) to further
protect the business.
“At the network level we have added new
tools and protections using the latest
artificial intelligence to monitor for
anything suspicious. At the risk and
governance level we have also updated
our standards and policies as we
constantly improve and test our tools in
the fast-changing world that we face,”
he said.
The technology team has also focused
on quality staff communications,
education and training to ensure our
Auckland Airport employees can help
keep our systems and data safe
and secure.
Standing alongside
our business partners
Few industries have been upended by
COVID-19 like aviation. That’s had a
domino effect for New Zealand tourism
operators and many of the companies
that operate from the airport.
However, despite facing a tough
operating environment, our 120-plus
terminal-based retailers remain
committed to the airport, with only one
tenant vacating their store early.
Occupancy remains at 96% across our
terminals.
“It’s been a tough period for many
organisations in our airport eco-system
and we’ve been there working right
alongside them, doing what we can to
support them and always acting with
integrity,” said Lucy Thomas, Auckland
Airport’s Head of Retail.
“Even with the low levels of passenger
numbers, we’ve been delighted to see
travellers enjoying their favourite airport
experiences such as visiting those cafés
and restaurants and shops that did their
very best to stay open even in trying
times. We know how much effort our
retailers and food operators have put into
making sure they meet Ministry of Health
safety standards, and the support from
travellers has been hugely appreciated.”
In the 2021 financial year, Auckland
Airport extended ongoing support to
tenants, working with organisations to
provide relief on a case-by-case basis,
depending on the impact and type of
business. This included:
• Providing a total of $3.9 million in rent
reductions to off-terminal property
tenants in the 12 months to 30 June,
including precinct retailers whose
businesses have been impacted by
lower foot traffic
• More than $185 million of abatements
to our in-terminal retailers across both
international and domestic operations
• Providing $9 million of aircraft parking
support (free of charge) to our airline
partners for planes not in use.
With reduced foot traffic, Auckland
Airport also moved fast to support new
ways for airport retailers to do business
and connect with their customers. The
domestic terminal became home to five
pop-up stores during the 2021 financial
year, giving international retailers the
opportunity to get their products to a
new customer market.
Digital infrastructure played a helping
hand too, with Auckland Airport shifting
the focus of our online shopping
experience, The Mall, from international
to domestic travellers. For the first time,
in October last year, people flying within
New Zealand were able to access
premium products from luxury and duty
free international retailers via a new
click-and-collect service at the domestic
terminal. Demand has been building
steadily, with monthly orders growing
12% (on average) since January 2021.
Your actions have
been critical to the
survival of my
business as a travel
retailer. Regular
contact throughout
those horrible
months, along with
your empathy and
understanding, has
been much
appreciated.
Costa Kouros
AWPL Retail Solutions Limited
Thank you note received by
Auckland Airport during the
2021 financial year
58%
Decrease in domestic and
international travel
compared to previous year
Auckland Airport has been busily
fine-tuning our cleaning protocols since
the outbreak of COVID-19: where
essential workers clean, how they clean,
and what to wear when they clean.
With the international terminal now
segregated into two different zones,
Auckland Airport’s Head of Guest
Experience Lauri Solecki said a stack of
new procedures and guidelines had
been developed to keep people safe.
“The control of COVID-19 is Auckland
Airport’s number one priority,” Lauri
said. “We are hugely grateful to the
essential workers who are carrying out
these cleaning duties, particularly on
the front-line in Zone B. Because of the
amazing work they do the airport is
open for flight operations and we really
appreciate their dedication and
commitment.”
Auckland Airport’s enhanced cleaning
standards outline in meticulous detail
how terminals should be sanitised.
Everything is planned and
choreographed, from cleaning
standards for different zones; protocols
to ensure airport workers are equipped
with the right levels of personal
protective equipment (PPE); use of PPE
donning and duffing stations; and
guidance around more frequent routine
testing for airport workers going into
higher-risk areas.
For example, after an international
arriving flight has been processed
through Zone B and passengers have
been taken to go into mandatory
managed isolation, cleaners thoroughly
disinfect along every step of the
passenger journey, including wiping
down walls, rubbish bins, doors,
handrails, bathrooms and escalators.
Other protection measures include
travellers having access to disinfectant
wipes stationed at doors and baggage
trolleys, as well as use of hand sanitiser
stations. There are 128 sanitiser units in
the international terminal alone.
In addition, Zone B operates on an
independent network of utilities
including heating, ventilation and air
conditioning, while a UV filtration
system further treats and cleans the air.
Auckland Airport is also currently
trialling air purifiers inside lifts.
This work helped us to meet
government requirements to become a
Quarantine Free Travel Airport under
the COVID-19 Public Health Response
Act 2020 .
BEHIND THE SCENES:
ENHANCED INFECTION PREVENTION
128
Sanitiser units in the international
terminal
28 Annual Report 2021Annual Report 2021 29

Place
Kaitiakitanga
With fewer aircraft in the sky,
roading upgrades, maintenance
work and property development
speed ahead.
The evolution of Auckland Airport into
an economic centre for Auckland and
New Zealand has continued throughout
the 2021 financial year, despite the
impact of the pandemic on the
aviation sector.
From wildlife protection to roading
upgrades and new property
developments, Auckland Airport’s
General Manager Infrastructure André
Lovatt said the wider Auckland Airport
precinct was far from idle in the 12
months to 30 June 2021.
“Auckland Airport’s ambition to create a
thriving economic hub for New Zealand
remains unchanged,” André said. “The
international terminal may be quieter, but
in consultation with our airlines and
border agencies, we have continued
work to reset long-term aeronautical
infrastructure development plans and to
protect the environment, ensuring
Auckland Airport remains safe, resilient
and prosperous for many years to come.”
Creating value for future
generations and protecting
the planet
30 Annual Report 2021Annual Report 2021 31

Built environment: Resetting the
infrastructure blueprint
In the space of a few short weeks last
summer, COVID-19 managed to undo
years of preparation to deliver billions of
dollars of new infrastructure at Auckland
Airport, including several major projects
that were underway or about to begin in
order to accommodate growth in travel.
They were:
• A 250,000m² expansion to the airfield
• A 30,000m² expansion to the
international arrivals areas
• The $100 million Northern Network
airport roading upgrade
• A new $1 billion-plus domestic
jet facility.
In the 2021 financial year, André said the
team had worked hard to reset the
infrastructure plan and position Auckland
Airport strongly for the inevitable recovery
in aviation with development to be staged
in line with the aviation sector’s recovery.
“We have revisited and reset our
infrastructure development roadmap in
consultation with our airline partners, to
ensure it properly reflects the reality of a
post-pandemic recovery, while serving the
needs of airline customers and the
travelling public.
“We have a refreshed blueprint for the
future, and while it reconfirms our
long-term commitment to our eight core
anchor infrastructure projects, the
creation of a new integrated domestic
facility will be the first of these priority
projects,” he said.
Along with a new domestic hub, we are
continuing to progress three more of our
anchor projects: the $160 million-plus
programme of transport upgrades;
upgrades to the existing domestic
terminal; and the $200 million-plus
transport hub. Anchor projects that
remain on hold are the international airfield
and taxiway expansion; new cargo
precinct; new international arrivals area
and the second runway.
Merging the domestic and
international terminal
Auckland Airport has announced plans
to begin groundwork for a new purpose-
built domestic facility to be merged into
the eastern end of the existing
international terminal and provide
seamless connections between domestic
and international flights.
Site preparation will begin early next year
for the project, which is likely to be
around three times the size of the current
domestic terminal once completed, when
accounting for shared check-in (kiosk-
based) for both international and
domestic travellers.
“Even though international passenger
numbers are currently at historic lows it is
important to set the wheels in motion
now in preparation for aviation’s recovery.
Kiwis want a better domestic travel
experience at Auckland Airport and
that’s what we’re focused on delivering,”
André said.
The first $30 million stage of the project
is expected to get underway in early
2022, relocating important back-of-
house infrastructure that lies within the
footprint of the planned domestic hub.
This will include demolishing the eastern
baggage hall and relocating key utilities
and the airport operations centre.
“We previously had around 30,000
people arriving and departing at the
international terminal every day. That’s
fallen by around 97% to just a thousand
or so a day currently. We’re taking
advantage of the downturn where we
can to clear the site, while bringing
forward upgrades of core utilities critical
to the functioning of the airport while
passenger numbers are low.”
Beyond demolition, the next major phase
of the $1 billion-plus domestic hub will be
determined by a range of factors
including the speed of aviation’s
recovery.
Auckland Airport aims to nurture
positive, collaborative and enduring
partnerships with mana whenua
through genuine engagement. We
work with mana whenua to develop
solutions that are then reflected in
the design and delivery of Auckland
Airport’s projects.
When Auckland Airport
collaborated with Waka Kotahi/
NZTA and Auckland Transport on
upgrades to State Highway 20B, we
were able to build on our long-
standing relationship with mana
whenua to work alongside Te Ākitai
Waiohua in the partnership. Each
party provided valuable input
throughout the programme as
SH20B was widened to deliver
better options for travellers,
including public-transport users,
cyclists and walkers. Te Ākitai
shared their unique knowledge and
ensured their narratives and
tikanga were an authentic part of
the design process.
Auckland Airport values our
relationships with mana whenua
because we recognise the history
and significance of this land and
its people as we shape the future of
the precinct.
WORKING WITH MANA
WHENUA ON THE
SH20B UPGRADE
Transport upgrades
push forward
Roading
When it comes to transport infrastructure
around the airport precinct, airline and
commercial customers require seamless
access into and around the airport.
In the 2021 financial year, both the
northern and southern entrances to the
airport precinct benefited from significant
upgrades that will serve the needs of
road users and the Auckland region well
into the future.
Auckland Airport is investing around
$160 million in these projects, including
upgrades to the inner roading network.
We recognise disruption on the roads
can be frustrating and we are committed
to completing these projects as soon
as possible.
To the north, we continued to
progressively complete work on our
$100 million-plus Northern Network
anchor infrastructure roading project,
with the majority of works to be
completed in October 2021. Along with
other maintenance upgrades, this project
was prioritised to provide long-term
resilience to the transport network and
key services while taking advantage of
reduced traffic to complete the project
and minimise disruption to road users.
The Northern Network includes key
improvements such as a new one-way
exit road system for the international
terminal, and the widening of George
Bolt Memorial Drive to include high
occupancy vehicle lanes with shared
pedestrian and cycle paths alongside
and new wayfinding gantries overhead,
as well as major services upgrades to
support the operation of the airport.
SH20B is adding mass-transit lanes, with
Auckland Airport contributing $32 million
to the project. The upgraded SH20B
connects to a new bus/rail interchange at
Puhinui Station, providing a 45-minute
public-transport service between
Britomart and the airport.
Airfield works
The pandemic has provided an
unexpected window for Auckland Airport
to accelerate maintenance work with
fewer flights making it safer, easier and
more cost effective to bring forward
scheduled projects.
In the 2020 financial year, Auckland
Airport embarked on a three-year period
of pavement renewal throughout the
airfield. This work continued during the
2021 financial year, with 365 concrete
slabs and over 15,000m
2
of asphalt
replaced across the airfield’s runway,
taxiways and apron in the 12 months
to 30 June.
The downturn in aircraft movements also
provided an opportunity to replace
sections of the runway in two tranches.
The first took place at the eastern
touchdown zone, involving the
replacement of 280 half-metre-thick
slabs of concrete. This project created
150 jobs and took 11 weeks to complete
by August 2020.
We now have a new
blueprint for the future,
and while it reconfirms our
long-term commitment to
our eight core anchor
infrastructure projects,
the creation of a new
integrated domestic facility
will be the first of these
priority projects.
André Lovatt
General Manager – Infrastructure
“We know how important the George
Bolt Memorial Drive upgrade is in
creating a resilient and reliable linkage
between the airport and the central city.
By widening the road, we’re increasing its
capacity, resilience and supporting
public-transport options,” André said.
To the south, Auckland Airport’s joint
project with Waka Kotahi/NZ Transport
Agency (NZTA), Auckland Transport, and
mana whenua Te Ākitai Waiohua on
45min
150
Public transport service
between Britomart and the
airport
Construction jobs created
– replacing 363 concrete
slabs on runway sections.
32 Annual Report 2021Annual Report 2021 33

After the completion of the eastern
section, attention moved to the western
touchdown zone and the replacement
of a further 83 slabs. A 150-strong
construction team worked on the
project which was completed in
December 2020.
Investment property:
Amid the pandemic,
our portfolio continues to grow
The development of the airport precinct
into a hub for commerce continued, with
Auckland Airport’s commercial property
business performing strongly in the 2021
financial year.
Our investment property rent roll
increased 12.5% to $117 million, driven
by the addition of new developments to
the portfolio and by rental growth within
the existing property portfolio.
The commercial investment property
portfolio is now valued at $2.6 billion, up
29% in the year to 30 June 2021, with the
weighted average lease term
strengthening to 9.7 years in the period.
“Property investment occupancy at the
end of the 2021 financial year was 99%,
which is testament to the strong tenant
covenant throughout our portfolio and
the support we have been able to
provide those companies who were
hardest hit by the pandemic [see p29],”
said Mark Thomson, Auckland Airport’s
General Manager Property and
Commercial. “We are proud of the
support that we have been able to
provide, not only because it is the right
thing to do but also because it is
necessary to retain services that support
airport workers.”
Mark said rapid growth in ecommerce
combined with structural shifts in the
logistics sector mean The Landing,
Auckland Airport’s light industrial and
logistics business park, is well positioned
for continued future property growth as
commercial tenants place greater
emphasis on locations that are close to
urban areas. Strong customer enquiry
from the logistics sector is expected to
continue well into the 2022 financial year.
In March 2021, a significant milestone
was achieved with the completion of the
85,000m
2
distribution centre and head
office for Foodstuffs North Island at The
Landing. It is the largest distribution
complex in New Zealand and has
extensive sustainability elements
interwoven through its design and
material selection. It features the
country’s largest rooftop solar array with
2,915 photovoltaic panels and a rated
output of 1.166MW to power the building.
FASHION OUTLET CENTRE PLANNED
FOR AIRPORT PRECINCT
Auckland Airport has unveiled plans to
develop a quality outlet centre on the
edge of the airport precinct, generating
more than 500 new jobs across more
than 100 stores and food outlets.
Mark Thomson, Auckland Airport’s
General Manager of Property and
Commercial, said there was a significant
gap in the market for a purpose-built
fashion outlet centre and the airport had
been exploring the concept for
several years.
“We are pleased to be introducing this
development to Auckland. It will be the
first of its kind in New Zealand, offering
an exciting new shopping experience for
Kiwis and travellers arriving to and
departing from the airport.
“Fashion outlet centres are well-
established internationally, particularly
at international airports like Auckland
Airport. There is also a strong strategic
fit – we believe focusing on a
development that is anchored in the
domestic market will strengthen our
business, while also creating a point of
difference and enhanced travel
experience for visitors to Auckland,”
Mark said.
Outlet centres have opened up near
airports in cities like Brisbane, Perth and
Vancouver, offering sought-after
premium and lifestyle brands to
consumers at often heavily
discounted prices.
Mark said the centre, to be located on
undeveloped land on the north eastern
edge of the airport precinct, will offer a
net lettable area of more than 23,000m
2
.
The development will be underpinned
by sustainable design principles, with
Auckland Airport targeting Green Star
design and build. It will also have a
modern and distinctive New Zealand
feel, providing strong connections
between indoor and outdoor spaces.
Careful precinct-wide planning and
ongoing investment in transport will
continue to prioritise terminal-bound
traffic and enable public transport,
creating a seamless travel experience
for all visitors to the precinct. Outlet
centre opening hours will be timed to
avoid flight schedule peaks.
“Many New Zealanders will be familiar
with visiting this type of bespoke
fashion outlet shopping centre on trips
overseas,” said Mark. “Our development
will look to focus on a popular range of
brands that will complement the
existing mix of retail we have here at
Auckland Airport, providing visitors to
and workers in the precinct more
variety and choice.
He said major phases of development
would be influenced by the strength
of the retail market and the recovery
of aviation.
“There’s still work to do in order to bring
this project to life, but we have an
extraordinary site and design, the
investment fundamentals are strong,
and the support from retailers and
consumers for this concept has been
very encouraging.”
Foodstuff’s adjoining office building is
5-star rated Green Star for its design and
build which incorporates other
environment-friendly features such as
rainwater capture, 32 electric vehicle (EV)
chargers and electric forklifts in the
distribution centre; this means the new
facility is likely to deliver further emissions
reductions. This facility recently won the
Commercial Architecture Award at the Te
Kāhui Whaihunga/New Zealand Institute
of Architecture Auckland Awards.
The new development of a specialised
waste facility for Interwaste was also
delivered in the 2021 financial year, with
the operation treating and processing
waste from Auckland Airport as well as
from Ports of Auckland, Port of
Tauranga, and District Health Boards.
In addition, Auckland Airport advanced
construction on the structures and
façades of the 5-star Te Arikinui Pullman
Hotel (a joint venture with Tainui Group
Holdings) and the 4-star Mercure Hotel
during the 12 months to 30 June 2021,
with the fit-out of both hotels scheduled
for completion when market conditions
improve.
“We are continuously incorporating
sustainability principles into all of our
investment projects, including on-going
discussions with tenants who have
requested sustainability to be integrated
into new build projects. We are also
working with them on how to reduce
consumption and waste, as well as
increasing the availability of renewable
and low-emissions fuels to consumers
within the airport precinct,” said Mark.
Looking ahead to the 2022 financial year,
he said foundations have been laid for
continued portfolio growth. The property
85,000m
2

distribution centre
and head office
2,915
photovoltaic panels
– the largest rooftop
solar array in NZ
5-star
rated Green Star
design and build
32
electric vehicle (EV)
charges and electric
forklifts used in the
ditribution centre
Award winning
Recently won the Commercial
Architecture Award at the
NZIA Auckland Awards
Foodstuffs North Island – completed March 2021
Te Arikinui Pullman Hotel – under construction
team has secured $160 million of
development pre-commitments including
from Geodis Wilson at Timberly Road
(6,000m
2
); from Healthcare Logistics,
a subsidiary of EBOS, in The Landing
Business Park (12,000m
2
); and Auckland
Airport is on track to deliver the
16,000m
2
Hellmann Global Logistics
facility early in the 2022 financial year.
These developments are included in our
$117 million existing rent roll and are
expected to add about $6 million in rental
income to the business once completed.
34 Annual Report 2021Annual Report 2021 35

For the first time, we have set a pathway
to reach Net Zero carbon emissions by
2030. This means reducing our scope 1
and 2
1
emissions as far as is feasible,
which will be achieved by:
• Phasing out the use of natural gas in
the international terminal
• Electrifying our corporate vehicle fleet
• Using refrigerants with the lowest
global warming potential (GWP)
possible
• Using 100% renewable electricity.
In 2030 should there be any residual
emissions these will be neutralised by the
purchase of certified carbon removals.
Environmental performance
As a significant landowner, with property
bordering the Manukau Harbour,
Auckland Airport has an important role to
play in protecting the natural environment
for future generations. Over the last
decade, we have made considerable
progress in the areas of emissions
reductions, energy savings and waste
management. In the 2021 financial year
we reset our environmental targets to set
us up for the next 10 years.
Performance against these targets
appears extraordinary during the 2021
financial year due to the low number of
international passengers. However, this is
expected to change in the coming years
with the return of international travel and
the additional airport precinct energy
consumption that this will drive.
For Auckland Airport’s full 2021 financial
year emissions profile refer to our
Greenhouse Gas Inventory Report
on the company website:
www.aucklandairport.co.nz
Information within the greenhouse gas
inventory report has been assured by
Deloitte in accordance with ISO 14064-1
Greenhouse gases – Part 1: Specification
with guidance at the organisation level for
quantification and reporting of
greenhouse gas emissions and removals,
and the Greenhouse Gas Protocol:
A Corporate Accounting and Reporting
Standard (2004).
Supporting our
business partners
Airlines flying to and from Auckland
Airport are continuing to upgrade their
fleets to more fuel-efficient aircraft.
Auckland Airport recognises we have a
role to play in assisting airlines to reduce
their carbon emissions. We have worked
with New Zealand’s air navigation service
provider Airways and airlines to help
reduce aircraft fuel burn, with fuel-saving
flight paths and the allocation of taxiways
to minimise aircraft taxi time.
We also support our partners to reduce
their carbon emissions through the
introduction of equipment that reduce
their dependence on aviation fuel while at
our airport. This includes provision of
Ground Power Units (GPUs) and
Pre-Conditioned Air (PCA) at all
international stands so that aircraft can
be serviced by New Zealand’s low-
carbon electricity grid while preparing for
the next flight, instead of burning jet fuel
while on the ground.
Auckland Airport recognises that the
impacts of climate change, including
rising sea levels and temperatures
and unpredictable weather patterns,
will impact our company, the local
community, New Zealand and the
planet. We also recognise that the
travel industry contributes to
climate change.
We are committed to reducing our
carbon footprint, improving our
operational resilience and adapting to
the predicted impacts of a changing
climate now and into the future. We
are also committed to supporting
others, particularly in the aviation
sector, to reduce carbon emissions.
In the 2021 financial year, for the first
time, we adopted the guidelines of the
Taskforce on Climate-related Financial
Disclosures (TCFD) to disclose the
impact of climate change on our
business and our impact on climate
change. As we further identify, assess
and manage climate change risks and
new opportunities for our
organisation, we will continue to
increase our degree of disclosure.
Auckland Airport expects to produce
a disclosure fully aligned with the
TCFD recommendations by 2023.
A copy of Auckland Airport’s full
Climate Change Disclosure Report
is available on our website at
www.aucklandairport.co.nz.
Governance and
risk management
Auckland Airport has assessed physical
and transitional risks for the business
due to climate change and these risks
are outlined in more detail in the full
climate change disclosure report.
Our process for risk management is
continuous and is designed to provide
advanced warning of material risks
before they eventuate.
Auckland Airport’s Board of directors is
responsible for reviewing and ratifying
the risk management structure,
processes and guidelines which are
developed, maintained and
implemented by management, including
climate change. The Board receives an
annual update on climate-related risks
and opportunities and has delegated
further risk oversight and monitoring to
the Safety and Operational Risk
Committee (SORC), which receives a
quarterly update on enterprise-wide
risks (including climate change), the
controls in place to mitigate the risk and
the planned actions to address them.
During the 2021 financial year,
management also established a
Sustainability Management Group,
involving nine senior leaders from
across the company, to oversee the
implementation of our Sustainability
Strategy including material climate
change initiatives, ESG targets and our
TCFD reporting.
Climate scenario analysis
Climate-related risks and
opportunities are considered as part
of Auckland Airport’s strategic
planning including our short-term
asset management plans, medium-
term infrastructure projects and
longer-term masterplan for the whole
of the airport precinct.
To date Auckland Airport has
undertaken analysis of current and
future flooding and inundation risk
under a high emissions scenario
representative of a 4.8°C warming
pathway (RCP 8.5). This analysis
identified that without planned
intervention, the frequency and
intensity of inundation and flooding
events on the airport precinct is
predicted to increase significantly,
eventually resulting in frequent
interruption to business activity in
2090. This potential impact is being
addressed by regular monitoring,
maintenance and upgrades to existing
infrastructure as well as strategic
planning of future infrastructure.
Scope 1 & 2 Carbon Emissions
FY19 – FY21
Water consumption
FY19 – FY21
Landfilled Waste
FY19 – FY21
0
1
2
3
4
5
6
7
202120202019
Emissions
(thousand tCO2e)
Scope 1Scope 2
0
50
100
150
200
250
300
350
400
202120202019
Water
(thousand m3)
0
500
1000
1500
2000
2500
202120202019
Climate Change Disclosure Pathway to Net Zero
Auckland Airport’s FY21 Carbon Emissions
ScopeF Y19FY20FY21
Scope 12,4722,3971, 674
Scope 2
2
3,8023,6483,031
Core elements of recommended
Climate-related Financial Disclosures
Governance
The organisation’s
governance around
climate related risks
and opportunities
Strategy
The actual and
potential impacts of
the climate related
risks and
opportunities on the
organisation’s
businesses, strategy
and financial
planning.
Risk Management
The process used
by the organisation
to identify, assess,
and manage
climate-related risks.
Metrics and
Targets
The metrics and
targets used to
access and manage
relevant climate-
related risks and
opportunities.
1 Scope 1 is the emissions from sources that are owned
or controlled by the company. Scope 2 is the emissions
from the generation of purchased electricity consumed
by the company.
2 Previous years’ scope 2 emissions have been re-stated
in FY21 to include transmission and distribution losses
from electricity lines owned by Auckland Airport
Metrics
and targets
Risk management
Strategy
Governance
36 Annual Report 2021Annual Report 2021 37

People
Whānau
Challenges bring out the best in us
Auckland Airport’s team is a resilient one.
Within a matter of weeks last autumn,
the precinct – filled with travellers,
restaurants and busy arrivals boards –
became an airport with virtually no
international flights. The border closed
and the only long-haul passenger flights
that did arrive were carrying people
potentially infected with COVID-19.
“These last 19 months have been a true
test of our company’s culture and
resilience,” said Auckland Airport’s
General Manager Corporate Services
Mary-Liz Tuck.
“Our team has had to deal with near
constant change and uncertainty, yet
every day I’m proud to see examples of
our values in action as our employees
carry out their work with care,
collaboration, integrity and respect.”
Today, more than 80% of New Zealand’s
arriving international air traffic and 95% of
international inbound cargo flows through
Auckland Airport, making it one of our
nation’s most important first lines of
defence against COVID-19, as well as
a critical social and economic link to
the world.
It is the team at Auckland Airport who
help to ensure this vital link continues, all
while maintaining the highest standards
of health and safety, not only for
passengers but also for themselves and
the community.
“The safety and wellbeing of our team is
as important to us as it is to their families
at home, the community and to our
stakeholders,” Mary-Liz said.
Creating value
for our employees
38 Annual Report 2021Annual Report 2021 39

Health and safety management
Each time the city of Auckland
experiences a lockdown a large portion
of Auckland Airport’s workforce continue
to leave home and go to work. Deemed
essential in their jobs, it is the airport’s
fire crew, cleaners, safety officers,
maintenance teams and customer
service staff who help to ensure the
airfield and terminals keep
operating 24/7.
“One of the wonderful things about the
team at Auckland Airport is the pride they
consistently show in their work, knowing
that they are providing a service to
New Zealand that really does matter.”
Mary-Liz said safety protocols to protect
employees were under constant review
at Auckland Airport, particularly in areas
of the international terminal where the
chance of coming into contact with
COVID-19 is higher. In the 2021 financial
year, we continued to introduce and
evolve infection-control measures [see
story, p28], setting high standards for
both terminals. This contributed to
Auckland Airport becoming the first
airport in New Zealand to achieve
the Airports Council International’s
Airport Health Accreditation – an
endorsement of our COVID-19 health
and safety measures.
When COVID-19 vaccinations became
available, Auckland Airport’s front-line
workforce was quick to sign up for them,
receiving external expert advice on the
vaccines, including on the science of
immunisation and the public-health
benefits. In support of the vaccine rollout,
Auckland Airport provided discretionary
sick leave to any staff members feeling
unwell after their injection.
“We know that vaccination is the pathway
forward to containing the virus and for
our country’s recovery. That’s why we
made sure our people were informed
and educated on vaccination from the
very start, by running sessions with
medical experts and immunologists,”
Mary-Liz said.
Employees continued to respond to the
requirement of ongoing routine testing for
COVID-19, she said, with comprehensive
internal policies and protocols around
what was expected. Employees are able
to access quick and regular
nasopharyngeal testing at the
international terminal, and members
of our team have also taken part in a trial
of new saliva testing technologies
[see sidebar story, p24].
When the Auckland Regional
Isolation and Quarantine Command
Centre (RIQCC) was set up for the
managed isolation and quarantine
process for Kiwis arriving home, it
needed someone with expertise on
the aviation sector and the
airport operation.
Auckland Airport moved Josh
Wright, a 14-year veteran in
Operations, into a liaison role with
RIQCC. Josh’s operational expertise
gave RIQCC a thorough
understanding of the processes
involved in the air, at the border and
inside the terminal.
With Josh’s help, the RIQCC was
better able to access and
understand data forecasts, planning
information, aeronautical
regulations, flight schedules and the
requirements of border agencies
and airlines.
“The partnership with RIQCC was
crucial in making it possible for
Auckland Airport to host arrivals in
quarantine-free travel,” Josh said.
SUPPORTING THROUGH
OUR EXPERTISE
Safety performance targets
One positive result from the challenges of
managing the impact of the pandemic
has been the increased focus on health
and safety more generally across the
airport precinct.
Safety observations were up to 2,356 in
the 2021 financial year, 28.7% above the
target of 1830. Awareness of our Safety
Management Systems sat at 82% (7%
above target).
“Safety learning never stops at Auckland
Airport. While we need to keep upskilling
and refreshing our knowledge, we also
need to keep innovating in how we
deliver safety messages so the
continuous education doesn’t get tedious
or people become complacent,”
Mary-Liz said.
Auckland Airport’s communication on
safety issues was a priority throughout
the 2021 financial year, covering a range
of channels including the company
website, staff intranet, face-to-face
briefings, electronic direct mail (eDM),
and letters to tenants and stakeholders.
Event highlights included:
• Auckland Airport’s annual Safety
Week taking place in October 2020,
with several workshops and drop-in
sessions covering safety topics from
safe driving airside to mental health
• A ‘Back to Work’ safety campaign
taking place in January 2021 for
operational and engineering staff
following the summer holiday break
• A Safety Management System Café
being established in April 2021,
offering fast and active kiosk-style
learning on emergency planning,
document control, reporting, bow-tie
risk assessments, change
management and auditing
• More than 150 employees attending
the St Johns Mental First Aid course,
focused on building mental-health
skills and support. The course helps
participants to recognise and provide
mental-health first aid and understand
the importance of self-care.
During the 2021 financial year, the
visibility and real-time use of hazard
and risk registers was improved by
uploading them to the company’s
electronic portal for employees, and also
making them available electronically to
third-party contractors.
A resilient culture
Following many months of disruption,
pressure and change, Auckland Airport
looked inward during the 2021 financial
year and carried out a study of our
workplace culture.
Taking a ‘snackable’ approach, Mary-Liz
said the aim of the culture study was to
find out where the organisation was
succeeding or falling short within its own
walls, and what it would take to improve.
The May Culture Check-in found a
resilient and strong culture, a highly
engaged workforce and a good
understanding of our purpose and
sustainability pillars.
“We asked people to describe our culture
and the top five words were diverse,
inclusive, collaborative, respectful and
siloed. Overall it was encouraging, and it
also gave us a very clear challenge to
work on,” Mary-Liz said.
The key messages for the leadership
team were consistent with previous
surveys and focused on how information
is shared, leadership effectiveness and
visibility, recognition, looking after
people’s well-being and creating a
workplace that is inclusive.
Mary-Liz said the leadership team was
acting quickly on employee feedback
with an action plan to make Auckland
Airport an even better place to work,
including offering more flexibility around
ways of working. “We know in a
company as diverse as ours that we
need to do as much as we can to break
down the internal silos and work on the
‘one team’ approach. We believe the
changes we are making will make our
team and our business stronger.”
We know that vaccination
is the pathway forward to
containing the virus and for
our country’s recovery.
That’s why we made sure
our people were informed
and educated on vaccination
from the very start, by
running sessions with
medical experts and
immunologists.
Mary-Liz Tuck
General Manager Corporate Services
The safety and wellbeing of
our team is as important to
us as it is to their families at
home, the community and to
our stakeholders.
Mary-Liz Tuck
General Manager Corporate Services
40 Annual Report 2021Annual Report 2021 41

Developing our people
Despite the challenges of operating
during a pandemic, Auckland Airport
continued to provide training and
development for our people through
the 2021 financial year.
“We know that at some stage the
pandemic will subside and an economic
recovery will lead to increased
competition for key talent. So, we
continue to remain focused on long-term
succession planning particularly for our
critical roles,” Mary-Liz said.
Along with on-the-job development
opportunities, secondment opportunities
were available to staff members [see
sidebar story, p40] and the leadership
team took part in a Leadership Shadow
exercise, challenging its members to
reflect on how their actions impact
organisational culture. Also, Auckland
Airport’s people and capability team
worked with four senior leaders and 20
young leaders to help them build insights
and skills to support them in their roles.
Looking ahead, Auckland Airport’s staff
will be able to take part in a new
programme offering them a day off work
to volunteer and contribute to the South
Auckland community.
KEY LESSONS FROM MANU AO
DEVELOPMENT COURSE
Manu Ao, a leadership programme for
Māori staff, supports Auckland Airport’s
sustainability goals and is expected to
have a lasting impact on the company
and our communities.
Facilitated by Indigenous Growth Ltd
and funded by Te Puni Kokiri, Manu Ao
enables Māori staff to chart a career
course in the corporate world and
develop their leadership skills.
Programme participant Erina Kent said
the Manu Ao course had been
transformational. “I’ve developed
practical tools to help me get the most
out of both my interactions with others
and the working week within a
professional environment.
“One of the great things about the
programme has been the
whanaungatanga, meeting people from
all over the organisation, sharing
challenges and growing personally and
professionally – it’s bonded us together.
In Māori that translates as Haumi ē! Hui
ē! Tāiki ē!”
As part of the course, participants
worked on projects in three separate
rōpū (teams). One rōpū has worked on a
project to revitalise employee
onboarding, helping new staff find a
sense of place at the airport. Another
team’s project focused on internal
cultural competency – improving the
understanding of Māori culture, te reo
and tikanga throughout the
organisation. The third has looked at an
internal mentoring programme to
attract, retain and encourage Māori
towards senior management and
improve the diversity of the people
employed by Auckland Airport.
Manu Ao involved 11 days of intensive
workshops and training. “We came
together as a group at the start of
October – and we’ve completed our
fourth wānanga workshop,” said Erina.
“There’s been work and coaching that
we’ve done in between each wānanga,
driving our individual work and our
team projects.”
Participants presented their projects to
an executive panel and graduated from
the programme in February 2021.
Our diversity numbersRefreshed safety targets
Auckland Airport set new safety targets
for the 2021 financial year:
1,830 High-Quality Safety Observations
(based on the average number of
observations per worker last year)
R ES U LT:
2,356
28.7% above target
Maintain 75% awareness of our
Safety Management System
R ES U LT:
82%
7% above target
Maintain no more than 10% of actions
outstanding in Risk Manager (maintaining
last year’s excellent result)
R ES U LT:
6.5%
3.5% ahead of our target
Diversity
Auckland Airport is committed to building
a more diverse, inclusive and equitable
workplace. Mary-Liz said the company
recognised it still had work to do in this
regard, particularly in retaining senior
females and building diverse talent in
middle management.
“As we reset our business rhythms and
re-establish our ways of working, we are
focused on creating a sense of place
where everyone is able to thrive, and one
where others aspire to work,”
Mary-Liz said.
During the 2021 financial year,
employees involved in the Manu Ao
development programme [see sidebar
story, p42] led an initiative to bring
Matariki to life for the Auckland Airport
team, with education campaigns, online
quizzes, te reo Māori greetings in the
terminal and a delicious hangi feast
for staff.
Auckland Airport is also resetting our
welcome for new staff members with the
introduction of an onboarding
programme called Tomokanga, due to
launch in August 2021 and celebrating
the organisation’s evolving diverse
workforce with the spirit of
manaakitanga.
Haumi ē! Hui ē!
Tāiki ē!
37%
of overall workforce is female
62.5%
of of Board is female
25%
of leadership team is female
43%
of senior leaders
1
are female
5%
of people leaders
2
are of Maori/
Pasifika ethnicity
1 Direct reports to the leadership team with substantive
roles
2 Staff members with at least one direct report
As we reset our business
rhythms and re-establish
our ways of working, we
remain focused on creating
a sense of place where
everyone is able to thrive,
and one where others
aspire to work.
Mary-Liz Tuck
General Manager Corporate Services
42 Annual Report 2021Annual Report 2021 43

Community
Hapori
Long-standing connections
continue
South Auckland is a strong, vibrant
community, but the past year has
been particularly tough for the
neighbourhoods immediately
surrounding Auckland Airport.
Auckland Airport’s General Manager
Corporate Services Mary-Liz Tuck said
that while the pandemic had disrupted
many of the airport’s activities, the
company’s long-standing connection
and care for our local community had
far from stopped.
“We’re a long-term business with more
than 50 years of history in South
Auckland and we bring the same
long-term view to our community
relationships,” she said. “We know our
success is built on the success of the
community around us. As we rebuild our
business, we want to focus our efforts
and resources on ensuring the
community is first to feel the benefits.”
Auckland Airport continues to work in
partnership with the Ministry of Social
Development and the Auckland Business
Chamber in supporting Ara, the Business
and Employment Hub operating at the
airport precinct. Even though the aviation
sector has felt the full impact of job
losses, Ara has continued to connect
local job seekers with a variety of
employment and training opportunities
around the wider airport precinct [see
sidebar story, p46]. Ara has held a
successful job expo aimed at students
and under the auspices of the Ara
Education Charitable Trust, has
secondary school students honing their
Creating value
for Auckland
Oke Charity was a grant recipient in the Twelve Days of Christmas
programme, which distributes currency placed in donation globes by
travellers in Auckland Airport’s terminals
44 Annual Report 2021Annual Report 2021 45

construction skills on a house renovation
project located on Nixon Road.
Auckland Airport’s community
programme also included many other
highlights for the 2021 financial year,
including:
• We continued to support the work of
Life Education Trust Counties
Manukau, a not-for-profit organisation
that aims to provide children with the
education and support to make good
choices and live healthy, happy lives.
The partnership with Life Education,
which goes back to 1988, saw
Auckland Airport contribute $50,000
and continue providing maintenance
support for the Trust’s mobile
classrooms
• Through the Auckland Airport
Community Trust, $325,431 has
been granted to a range of community
groups and projects. Many of the
Trust’s grants were to community
groups responding directly to the
challenge of COVID-19, including
responding to increased demand
on foodbanks from families
experiencing hardship
CONSTRUCTION CAREERS TAKING SHAPE
Getting local high school students into a
career in construction has taken a step
forward with the establishment of a
renovation hub at Auckland Airport
during the 2021 financial year.
In a unique collaboration between eight
schools, Auckland Airport and other
construction-based businesses,
industry training organisations, and
local and central government, the Ara
house renovation project is giving
students their first taste of working
on a building site.
Sarah Redmond, schools’ engagement
manager for the Ara Education
Charitable Trust, based at Auckland
Airport, said teams of students
undertaking trades-based study at
school take houses earmarked for
demolition and turn them back into
liveable homes. Not only does it provide
hands-on experience, with the
construction industry generating up to
50% of the waste going to landfill, it also
brings wider sustainability benefits.
“Renovating an existing house allows
students to work in all the trades –
everything from plumbing in a new
bathroom to reglazing windows – while
experiencing what it will be like to work
on site in real life. We’re working to
upskill our young people, so employers
are really keen to take them on for
apprenticeships,” said Sarah.
“It’s also about smoothing that tricky
transition from school through to work
by stitching together the different
education providers, businesses and
government agencies that can support
our young people.”
Within the project there is a specific
programme aimed at boosting the
number of Māori/ Pasifika women
taking up work opportunities in the
construction sector.
“Again, it’s about supporting these
young women so they can successfully
move into the workforce, as well as
opening their eyes to the breadth of job
opportunities in this sector. It’s an
exciting industry with so many
different, and well paid, career paths.
We’re also hoping that from this we can
be part of the solution to raising
household income levels in
South Auckland.”
And as Auckland Airport looks to the
future restart of its infrastructure
programme, these young people will
form the talent pipeline needed for the
construction projects.
• The generous donations of travellers
through our terminals saw $100,000
redistributed to 12 South Auckland
charities through the 12 Days of
Christmas grants programme. The
work of all the recipient charities
aligns with our community focus on
empowering people through
education, helping people into
employment, and protecting the
environment
• For 16 years Auckland Airport’s
Emergency Services (AES) team has
been a driving force behind the
Leukaemia Blood Cancer NZ’s
Firefighter Sky Tower Stair Challenge,
with Auckland Airport providing
$15,000 of sponsorship support and
our AES crew fundraising for the
cause. Since the first challenge in
2005, members of AES have raised
more than $500,000 for the charity by
racing the 200m vertical climb via 51
flights of steps, while wearing full
firefighting kit
• When COVID-19 meant the temporary
closure of our international terminal
Strata Lounge, frozen and dry goods
to the value of $23,000 was donated
to the South Auckland Christian
Foodbank
• The cultural and youth performance
celebration that is ASB Polyfest was
back in full force, with $20,000 of
support from Auckland Airport and
on-site representation from the Ara
Education Charitable Trust.
“We continue to look for opportunities to
grow our connections with mana
whenua,” said Mary-Liz. “This begins
within our own organisation, supported
by our new Manu Ao Māori leadership
cohort [see sidebar story, p42]. We are
uniquely placed in having a beautiful
marae at the heart of our precinct, Te
Manukanuka o Hoturoa, to provide the
cultural and educational setting for the
airport and wider community. As we have
come back together as an organisation
to navigate the post-COVID-19 world the
marae has provided the setting for us to
reconnect, grow and develop, both in our
business operations and as part of the
wider community.”
Supporting our wider community
It’s an exciting industry
with so many different,
and well paid, career
paths. We’re also hoping
that from this we can be
part of the solution to
raising household
income levels in
South Auckland.
Sarah Redmond
Schools’ Engagement Manager
Ara Education Charitable Trust
Clockwise from top left: Middlemore Foundation and Soundraise were Twelve Days of Christmas grant recipients;
Auckland Airport continues to support the Life Education Trust
46 Annual Report 2021Annual Report 2021 47

Risk management is an integral part of
the company’s business. Auckland
Airport has developed an enterprise risk
management framework, designed to
promote a culture which ensures a
proactive and consistent approach to
identifying, mitigating and managing
risk on a company-wide basis.
Auckland Airport’s risk management
policy provides clarity on roles and
responsibilities in order to minimise the
impact of financial, operational and
sustainability risk on its business. Under
this policy, the Board is responsible for
reviewing and ratifying the risk
management structure, processes and
guidelines which are developed,
maintained and implemented by
management. The Board also sets the
company’s risk-appetite on an annual
basis and tracks the development of any
existing risks and the emergence of new
risks to the company.
Risk management
Auckland Airport’s risk management
framework is underpinned by two
committees which are in place to identify
and mitigate potential financial and
operational risks, the Audit and Financial
Risk Committee and the Safety and
Operational Risk Committee,
respectively. The company also has
mechanisms in place to recognise and
manage sustainability risks, including
environmental and social risks.
The company has undertaken a robust
risk assessment process to identify and
minimise the impact of financial,
operational and sustainability risk on its
business. This process is continuous and
is designed to provide advanced warning
of material risks before they eventuate.
The process includes:
• Significant risk identification
• Risk impact quantification
• Risk mitigation strategy development
• Reporting
• Compliance, monitoring and
evaluation to ensure the ongoing
integrity of the risk management
process.
Safety and operational risk
Auckland Airport has a commitment
to zero harm and to ensure that health
and safety risk management is
embedded into the workplace culture.
The role of the Safety and Operational
Risk Committee in relation to health
and safety risks, performance and
management includes specific
responsibility to review and monitor
the application of the company’s
enterprise-wide processes for identifying
and managing:
• Health and safety matters
• Environmental issues including climate
change
• Operational risk
• Human rights violation risk
• Compliance with applicable law and
the company’s own policies.
The Safety and Operational Risk
Committee reviews the performance of
the company’s safety management
system, and safety policy statements on
an annual basis and provides guidance
on the approach and targets for the
following year.
In 2021, the company updated its
reporting system to specifically link to
and track Auckland Airport’s identified
critical health and safety risks. As part of
a continual review cycle, updated bow tie
risk assessments were conducted for
half of the critical risks prior to 30 June
2021, with the remainder programmed to
be completed by the end of the 2021
calendar year. The bow tie assessments
cover risks across the airfield,
aerodrome, security, health, natural
disasters, high risk works and
asset failure.
The company has a crisis management
team (CMT) which has an established
governance structure to effectively
manage fast evolving risk situations in
a robust and practical way. In January
2020, the CMT was initiated for the
COVID-19 response and was finally stood
down in November 2020, but is
reinstated when required including with
changes to the Government’s Alert
Levels. The CMT is responsible for
making strategic, business response,
emergency communications, staff health
and welfare and government relations
decisions. The CMT is made up of
leadership team members and senior
employees from across the company.
Auckland Airport’s business is also
subject to other internal and external
audit and review, including in particular
the regular external audit by New
Zealand’s Civil Aviation Authority to
ensure operational certification, as well
as external audits as part of the Accident
Compensation Corporation’s Workplace
Safety Management Practices
programme.
Sustainability (environmental and
social) risk
Auckland Airport operates in a
commercial environment where there is
always potential for economic,
environmental and social sustainability
risks. The company recognises its unique
role in protecting the New Zealand
natural environment and the role that
the tourism sector plays in all areas
of sustainability.
As set out above, Auckland Airport has in
place appropriate mechanisms and
controls to identify where these risks are
material to the company and to manage
these as required. Sustainability is a key
responsibility of the leadership team. In
identifying sustainability risks, the
company assesses common risks across
the business to determine the likelihood
and severity of those risks and,
subsequently, whether they are a
concern for the company. In addition to
managing the risks associated with
sustainability, the company is committed
to external disclosure and benchmarking,
and reports on a number of sustainability
performance indicators.
In 2021, Auckland Airport implemented
its refreshed supplier code of conduct,
which confirms the company’s
commitment to operate in a responsible
and sustainable manner and its
commitment to work with suppliers that
share these values. The code of conduct
includes the company policy to limit the
risk of modern slavery occurring within its
own business, infiltrating its supply
chains or through any other business
relationship. The company will not
tolerate any form of modern slavery in its
operations or supply chain and is
committed to building a supply chain that
aligns with this approach. The refreshed
supplier code of conduct reflects
Auckland Airport’s expectations for the
conduct of all suppliers, contractors,
and consultants.
The impacts of climate change, including
rising sea levels and temperatures, and
unpredictable weather patterns could
have negative effects on the
infrastructure and property assets of the
company and is a key risk. In 2021,
management developed Auckland
Airport’s Sustainability Pathway to 2030,
which outlined climate change as a
material issue to the organisation and
included the recommendation to begin
disclosing climate-related risks and
opportunities aligned with the Task Force
on Climate-related Financial Disclosures
(TCFD) framework. Management also
established a Sustainability Management
Group involving leadership team
members and senior employees from
across the company, to oversee the
implementation of the refreshed
sustainability strategy including material
climate change issues and initiatives.
Being a responsible business is a core
part of the company’s focus. By
respecting people, the community and
the environment, Auckland Airport is able
to grow its business sustainably and
create value for all stakeholders in the
long term.
Audit and financial risk
The Audit and Financial Risk Committee
is responsible for financial risk
management oversight.
Each year the chief executive and the
chief financial officer are required to
confirm in writing to the Audit and
Financial Risk Committee that:
• The company’s financial statements
are presented fairly, in all material
respects, and in accordance with the
relevant accounting standards
• The statement given in the preceding
paragraph is founded on a sound
system of risk management and
internal compliance and control,
which implements the policies
adopted by the Board
• The company’s risk management and
internal compliance and control
system is operating efficiently and
effectively in all material respects.
The Board has received assurance from
the chief executive and chief financial
officer that this confirmation is founded
on a sound system of risk management
and internal control, which is operating
effectively in all respects relating to
financial reporting.
48 Annual Report 2021Annual Report 2021 49

Auckland Airport’s Board is responsible
for the company’s corporate
governance. The Board and Auckland
Airport’s leadership team are
committed to undertaking this role in
accordance with internationally
accepted best practice appropriate to
the company’s business, as well as
taking account of the company’s listing
on both the NZX and the ASX (Foreign
Exempt Listing Category). The
company’s corporate governance
practices fully reflect and satisfy the
‘NZX Corporate Governance Code 2020’
(NZX Code) and the Financial Markets
Authority handbook ‘Corporate
Governance in New Zealand – Principles
and Guidelines’ (FMA Handbook). The
company also has regard to the ASX
Corporate Governance Council’s
‘Corporate Governance Principles and
Recommendations’ (4th Edition) (ASX
Principles) in designing its governance
framework and practices, given its
Foreign Exempt Listing on the ASX.
The Board confirms that in the year to
30 June 2021, the company’s corporate
governance practices complied with
the NZX Code recommendations.
The company’s constitution, charters
and policies are available on the
corporate information section of the
company’s website at
corporate.aucklandairport.co.nz.
Code of ethical behaviour
Ethics and code of conduct policy
Auckland Airport has always required the
highest standards of honesty and
integrity from its directors and
employees. This commitment is reflected
in the company’s ethics and code of
conduct policy, which clearly articulates
the minimum standards of ethical
behaviour that all directors, employees,
contractors and consultants of the
company are expected to adhere to.
Corporate
governance
The ethics and code of conduct policy
covers a range of areas and deals with
the company’s:
• Responsibility to act honestly and with
personal integrity in all actions
• Responsibilities to shareholders,
including protection of confidential
information, restrictions on insider
trading, rules for making of public
statements on behalf of the company,
accounting practices and cooperation
with auditors
• Responsibilities to customers and
suppliers of the company, and other
persons using the airport, including
rules regarding unacceptable
payments and inducements,
treatment of third parties, non-
discriminatory treatment and
tendering obligations
• Responsibilities to the community,
including compliance with statutory
and regulatory obligations, use of
assets and resources and conflicts
of interest.
The ethics and code of conduct policy
also sets out procedures to be followed
for reporting any concerns regarding
breaches of the policy and review of its
content by the Board.
Securities trading policy
Auckland Airport also has a policy on
share trading by directors, officers and
employees, which sets out a fundamental
prohibition on trading of the company’s
securities by any person with material
information that is not generally available
to the market and the obligation of
confidentiality in dealing with any material
information. The policy applies to
ordinary shares and debt securities
issued by the company, any other listed
securities of the company or its
subsidiaries and any listed derivatives in
respect of such securities. Under the
policy, there is also a prohibition on
directors and senior employees trading in
the company’s shares during any
black-out period.
The company’s procedure for reporting
and dealing with any concerns in respect
of the conduct of its directors, employees
and contractors is set out in its whistle-
blower policy consistent with the
requirements of the Protected
Disclosures Act 2000.
Board composition and
performance
The Board’s charter recognises the
respective roles of the Board and
management. The charter reflects the
sound base the Board has developed for
providing strategic guidance for the
company and the effective oversight of
management. The Board’s primary
governance roles are to:
• Work with company management to
ensure that the company’s strategic
goals are clearly established and
communicated, that strategies are in
place to achieve them and to monitor
performance in strategy
implementation
• Approve remuneration policies via the
People and Capability Committee
• Approve and monitor the company’s
financial statements and other
reporting, including reporting to
shareholders, and ensure that the
company’s obligations of continuous
disclosure are met
• Approve the annual budget
• Ensure there are procedures and
systems in place to safeguard the
health and safety of people
working at, or visiting, the Auckland
Airport precinct
• Ensure that the company adheres to
high ethical and corporate behaviour
standards and achieves a high level
of diversity
• Ensure that the company has
appropriate risk management and
regulatory compliance policies in
place and monitor the
appropriateness and implementation
of those policies.
The Board delegates the day-to-day
operations of the company to
management under the control of the
chief executive. Day-to-day operations
are required to be conducted in
accordance with strategies set by the
Board. The Board’s charter records this
delegation and promotes clear lines of
communication between the chair and
the chief executive.
The Auckland Airport Board
The number of directors is determined by
the Board, in accordance with the
company’s constitution, to ensure it is
large and diverse enough to provide a
range of knowledge, views and
experience relevant to the company’s
business. The constitution requires there
to be no more than eight and no fewer
than three directors.
The Board currently comprises eight
directors, all of whom are considered by
the Board to be ‘independent’ directors.
In judging whether a director is
‘independent’, the Board has regard to
whether or not the director is a
Substantial Product Holder (or is an
associated person to a Substantial
Product Holder) and is free of any interest
which may materially interfere with the
exercise of independent judgement. The
Board also has regard to whether or not
the director has been employed by the
company in an executive capacity, has
been a material supplier or customer of
the company, or has been engaged to
provide material professional services to
the company in the last three years.
The Board considers that the roles of
chair of the Board and chief executive
must be separate. The Board charter
requires that the chair of the Board is an
independent, non-executive director.
As at the date of this annual report, the directors, including the dates of their appointment and independence, are:
DirectorQualificationsGenderLocationDate of
appointment
Te nu r e
(years)
Independence
Patrick StrangeBE (Hons), PhD,
CFInstD
MNZ22 October 20156Ye s
Mark BinnsLLBMNZ1 April 20183Ye s
Dean HamiltonBCA, CMInstDMNZ1 November 20183Ye s
Julia HoareBCom, FCA,
CMInstD
FNZ23 October 20174Ye s
Liz SavageBEng, MSc,
MAICD
FAUS23 October 20192Ye s
Tania SimpsonBA, MMM,
CFInstD
FNZ1 November 20183Ye s
Justine Smyth (CNZM)BCom, FCA,
CFInstD
FNZ2 July 20129Ye s
Christine SpringBE, MSc Eng,
MBA, CMInstD
FNZ23 October 20147Ye s
Seated – from left: Patrick Strange, Christine Spring, Justine Smyth, Dean Hamilton
Standing – from left: Tania Simpson, Julia Hoare, Liz Savage, Mark Binns
50 Annual Report 2021Annual Report 2021 51