Just please be advised that today's conference is being recorded. Without further ado, I'll hand the conference over to your first speaker for today, Adrian Littlewood. Thank you, and please go ahead, Adrian. Thank you. Good morning, everyone, and welcome to the results webcast for FY 2021. Just a quick note. We are doing this remotely, given the Level 4 lockdown here in N.Z. Just an advanced apology for any audio quality issues or if we have some bumps along the way with dial-in and dial-outs. We'll work our way through that. Thank you for joining us. I'm joined by Phil Neutze, our CFO, who's on the call, and some of our team also listening in. FY 2021 really reflects, I guess, the status of our business in the context of a pandemic. It's significant impact from passenger activity and volume, underlying strength and us looking through and out the other side of this current phase and really trying to strengthen our business for the longer term. I'm going to turn to, in say a few words, an intro and summary, referencing the slides. I'll then hand to Phil, who will walk through some of the more detailed results, and then I'll then give you an overview of some of the detailed activities and looking ahead to the future. I'm going to turn to page five of the presentation results. Look, this just gives you a quick scan of really what I said is the impact across our business, quite heavily dominated by passenger impact, with, if I reference FY 2019 numbers, international down about 95%, domestic still down almost 40% on what might've been normal in FY 2019. Quite high impact flowing through to retail. Again, heavily down in the period, down 87%. Transport have been a bit better, obviously supported by the return of domestic travel during the year. Only down about 42% in the period. We'll touch on that more later. Hotels also affected by the same dynamic as is our investment in Queenstown. Property, though, has been the shining light in our current results. Breaking through the NZD 100 million revenue mark for the first time, up almost 14%. Still have a good pipeline with NZD 160 million of projects under construction. Our portfolio value has now broken through the NZD 2.5 billion mark with the lift in underlying property values. The metrics there remain very strong. I'll touch on that in more detail later. Just looking at the high-level results and how that all rolls up on page four. Sorry, going back a page. Our top line revenue down 50% to NZD 281 million. Underlying earnings, NZD 171 million for the year, down 34%. Reflecting some discipline there in cost management, but obviously the headline being the underlying loss in the period. Page six of the presentation really shows that story quite starkly in the context of our history, and we've talked a lot about this, but this just shows you how the 2020 and 2021 have been affected by the pandemic compared to our long history back through to 1995 in this period. That sharp decline. On the right-hand side, you can see that breakout for international versus domestic and the various lockdowns throughout the year affecting domestic volumes. Obviously, as we all know, we're back into Level 4 now, we're back into something that looks closer to April 2020, until we get out of this Level 4 period. Turning to page seven before I hand to Phil, I just really wanted to preview and touch on what a great job our team have done. Literally our team have not wasted a day during this last 19, 20 months, getting after what matters. If I think about the four legs to that, working on running the border safely and doing our work to protect New Zealand from COVID at the border. At the same time leading, I think, the work on how do we think about future border models. That work continues. Secondly, investing in core asset resilience and investments, runways, roads, fuel lines, fiber. Taking the time while we have it to invest in those core assets. At the same time, resetting our infrastructure program. Announcing that last week. In our commercial business, again, we've worked very hard with our tenants right across our retail and commercial property portfolio, stay helping them, supporting them, but obviously working and keeping that momentum and discount fashion out that we've announced today is, I think a sign of our view looking through this. Underpinned through all of that has been the work we did to stabilize the balance sheet, raise new liquidity, really concentrate our effort on our capital operational cost management, and then reset our funding and covenants for the years ahead. That really does allow us to chart our own path through this pandemic. With that, I'm going to hand to Phil, who will pick up on page nine of the presentation. Over to you, Phil. Thanks, Adrian. Thanks to my team for giving me this confronting slide to kick off on. It's slide nine. The comparison of PAX versus PCP is consistent with our usual approach, but it slightly understates the impact of COVID-19 on our FY 2021 numbers. Versus the pre-COVID FY 2019 results, international PAX for FY 2021 were down 94.7% and domestic PAX were down 39.1%. In the final quarter of FY 2021, domestic PAX were running at just over 77% of pre-COVID numbers, and this peaked at nearly 90% in July of this year. On to slide 10. This is pretty self-explanatory. The main call-out is that government-subsidized international cargo services held up our international aircraft movements in MCTOW at circa 30% of pre-COVID levels relative to the much greater decline in international PAX. Again, slide 11 doesn't make great reading. It shows that border restrictions continue to have a dramatic impact on Auckland Airport's revenues during FY 2021. We did, however, carefully control operating expenses, as Adrian mentioned, during the year, and we guided investors to expect this time last year. This slide overstates the turnaround in expenses owing to some FY 2021 reversals of CapEx impairments and termination costs. A better view is set out on s lide 14, which we'll get to shortly. Depreciation was up by about NZD 12 million in FY 2021. This reflected prior years' CapEx and completion in FY 2021 of runway slab replacements, air bridge refurbishments, and various IT upgrades. That included installing new car park guidance systems. Interest expense rose by NZD 22.2 million in FY 2021, all of that increase relates to one-off impacts of USPP makegood payments and various swap closeout costs. These changes will deliver more than NZD 10 million per annum of interest savings going forward. Moving to slide 12. The two main call-outs I want to make from this slide relate to retail income and investment property income. Retail income was down nearly 90% versus PCP. International retailer sales were down by nearly 95%, slightly more than the reduction in international PAX versus PCP. This is because MAG was waived for FY 2021, and there were also some concession rate reductions. Investment property income, on the other hand, was our key standout performer in FY 2022. It was up NZD 12 million, or nearly 14% versus PCP. This reflected some big new property developments coming online in FY 2021. That included the Foodstuffs, warehouse, and office development, I think you'll learn a bit more about later, and some rent revisions. We're now on slide 13, as indicated last year, Auckland Airport needed to quickly resize after the border was closed and our revenues fell quite dramatically. This impacted many expense lines. Sadly, we had to farewell many fellow staff in the final quarter of FY 2020, and the annualized impact of this contributed to the 27.5% staff cost reductions in FY 2021. The FY 2021 P&L also benefited from some one-offs. We reduced impairments on some paused CapEx projects that we now expect to resume over the next couple of years, and successful negotiations with several contractors who had to down tools on CapEx projects when we paused them. We've resolved those discussions and resulted in significantly lower termination costs than we provided for in FY 2021, FY 2020, I should say. Together, these resulted in NZD 19.4 million of reversals of prior period fixed asset losses, and that was partly offset by NZD 2.5 million of new provisions that we made in FY 2021. Turning now to slide 14. As I first mentioned a few slides back, and as we indicated to investors this time last year, Auckland Airport was able to significantly cut back on operational expenditure in FY 2021 to respond to COVID-19. On a normalized basis, we reduced OpEx by circa 30% versus FY 2019, and those savings were concentrated in staff costs, as I mentioned earlier, as well as outsourced operations. Examples include baggage handling, bus services, our Strata Lounge, valet services, and park and ride. We also had reductions in utilities, cleaning, and marketing costs. On slide 15, and not too long before I hand back to Adrian. This slide is self-explanatory, and it calls out some of the main projects that contributed to Auckland Airport's nearly NZD 200 million of CapEx in FY 2021. Key projects included a major upgrade of the northern airport access roads, that's George Bolt Memorial Drive. The construction of State Highway 20B, that's the road that goes east, high occupancy vehicle lanes. We renewed runway slabs as well as some additional apron slabs and fuel systems. We stood up a dedicated facility for processing passengers to manage isolation, and we completed the Foodstuffs office and warehouse development, as well as a couple of other investment property projects. Turning to slide 16. As you can see from the table to the right of the slide, if it wasn't for the interest coverage covenant waivers that we negotiated with our banks back in April last year, we would've been in default on this covenant for FY 2021. Moving forward from then, even before the Tasman bubble was closed on 23rd of July, and later, of course, New Zealand's Level 4 lockdown from midnight this Tuesday, we were getting uncomfortable regarding our ability to comply with the 1.5 x EBIT-based interest coverage covenant for FY 2022 after the existing waivers were due to expire. We set about negotiating a modified EBITDA-based interest coverage covenant to apply from June next year. This starts at 2 x and steps up in calendar 2023 to 2.5x, and again in calendar 2024 to 3x. I should just clarify that this EBITDA measure in this context is measured before fair value changes and investments in associates. It's equal to our reported EBITDA measure. We expect to comply with this covenant going forward, waiver is no longer required. At the same time, we extended nearly NZD 700 million of bank facilities due to mature early next year for between seven and 19 months. All in all, we're very comfortable in terms of liquidity going forward. Finally for me today, we're on slide 17. Again, the slide is self-explanatory, but there's a couple of highlights I'd like to call out. Non-current assets grew strongly as a result of the circa 13% lift in PP&E, that was dominated by the NZD 760 million uplift in the fair value of non-investment property land in FY 2021. We also booked a nearly NZD 530 million fair value increase in our investment property portfolio in FY 2021. This includes yet-to-be-developed investment property land. Cash reduced significantly during the year. That mainly related to the circa NZD 650 million of debt repayments that we made in FY 2021. That was largely USPP. There was some maturities, as well as prepaying the remaining balance and NZD 150 million New Zealand debt capital markets bond that we repaid. Together, this resulted in our total borrowings falling by more than 1/3. As I mentioned earlier, these debt repayments, plus the close out of some interest rate and currency hedges, will reduce our interest expense by more than NZD 10 million per annum going forward. Back to Adrian now. Thank you, Phil. Starting at page 19, just as a reminder for followers of our results, this presentation is really designed not only to support this call, but also for others who can't join, who can view it later. It is a bit of a record of the year, as well as something to talk to. Some of these things we've talked about or touched on already, so I'll just touch on highlights as we go through. We may move quickly through this next section. On page 19, I guess it's just a reflection and a summary of the broad-based activity we've taken right across the business. No stones have been left unturned, both to reset the business for the pandemic phase, put ourselves in control as much as we can of our own destiny through the equity raise and restructured financing. All the work we've done to reset the business, and I think that's paid dividends and will help us on the way up. That's a sort of a summary of the strategy going into this. If I turn to page 20, again, I just want to acknowledge the great work our team have done over the past 19 months, to safely operate the border, to work closely with government border agencies and airlines around getting domestic travel going again, and then really investing time and energy on how do we make our systems and process work again in a safe way. For example, we led the work on the Trans-Tasman safe travel zone. We built a quantitative risk-based border model. It was peer-reviewed through the New Zealand Medical Journal. We obviously split our terminal into a health management zone and a quarantine-free travel zone. Again, no trifling issue, particularly when you have to put all systems into separate categories and manage that safely. That's been a real joint effort, and I just want to acknowledge our team's work on that. That's operations. If I turn to page 21, the other theme that I touched on before was keeping on with the critical infrastructure investment despite the pandemic. We have taken advantage of this time to keep on with key projects as well as bring forward others that were previously planned, which are very difficult to get after. I think we've spent about NZD 220 million across, obviously a couple of financial years, but since the pandemic started in runways, airfields, utilities, and roading. That's been a feature and for those of you who've traveled, you would have seen the roadworks. They're getting close to completion now. It's a great example. The runway upgrade was another huge project. We've taken that same philosophy through into our updated infrastructure program. It was great last week to be able to talk to that, and talk about how we've reset that program. I think that the key in all of that has been, again, that close work with border agencies through the Border Executive Board, BARNZ in New Zealand, the other airlines, and how we've rethought about that program. That is a narrowed-down program, with an anchor around the new domestic hub merging into the international terminal. Just quickly touching on that in a bit more detail, this is the next page, which is page 22. Just to try and locate it, because sometimes it's hard to get your head around different elements. This tries to capture what was the eight anchor projects on this map. You can see there's projects that are now on hold, which is obviously the northern runway, northern taxiways and stands, the international arrivals project and the cargo precinct. Those are on hold, and as we said last week, they are more orientated towards international travel. It's absolutely appropriate for those that go on hold, they are protected. The work is not lost. It will be restarted. The team did a great job of navigating a way out of those contracts where they were underway. The four that are continuing, which I touched on, was obviously anchored by the new domestic hub merging with the international terminal in that location there in the center of the page. A new ground transport hub, which I'll come back to later. The road and transit system, which I think all up we will be spending NZD 160 million in this phase on that program, which creates an entirely new traffic and transport system. Then obviously ongoing investment in the current domestic terminal. That is the plan. If you can locate the parts of that new domestic hub, you can imagine underneath that headhouse area, we call it, there's a lot of existing infrastructure that will be decommissioned, like baggage systems and bag halls, power centers, operation centers, services and utilities that service aircraft. We were not able to do that prior to 2019 under our previous model because of how intensively used some of those assets were. We are trying to use this time to decommission those assets. In fact, where we will end up with is a better end product for airlines, passengers, and those operating in the airport environments. It allows us to get real efficiency through contiguous security screening, common check-in, single ground transport hub in a way that wasn't as possible before. It's great to look at that, and that work will really kick off in the new year. That work's been continuing over the last 19 months, but we'll be into enablement work, demolition, and preparation of the site early in the calendar next year. The next page gives a quick artist's impression of the walk here. If you can imagine for those regular travelers through international at New Zealand and Auckland, if you go through current aviation security, you sort of head right towards the international gates. Under this model, imagine going left and heading down towards a new pier. That is the view you will see looking out towards the pier in the background. This is the transitional area as you go through F&B and other shops on the way out to the new domestic pier. We think this is going to be a great product and something New Zealanders are really keen to see happen. Turning to page 24, obviously the air terminal is only part of it. The transport hub and how you get from vehicles and transport into the terminal is a key part of that transition. We have updated our plans that we were starting out on previously. I think, again, we've used this time to make a better answer. We have reconfigured our transport hub that will provide public pickup and drop-off, commercial operators and transport with access to the front door of the terminal, connected to the terminal with air bridges, so you'll be able to transit across at grade or at a air bridge. It'll provide about 2,500 car parks with a covered pickup and drop-off area for the public. Really does form part of a wider multi-mode transport plan that considers both what we need now but also the future. We have a really clear view on stage two, and we also have a clear view on how mass transit would integrate into this transport hub. We are aggregating activity and traffic or public movement into the terminals from this area. This will be a huge step up in terms of experience for travelers, and I think will be well welcome and fits very tidily into the landside precinct, with a hotel precinct just adjacent to that area, and is entirely aligned with our current roading program that is almost complete. Now, turning to page 25. This really digs a bit deeper into the retail and transport subsegments that Phil touched on before. Look, again, I won't go into too much detail, but we've worked really hard to support our retailers in the retail segment. Our rent abatement arrangement is now circa NZD 185 million in the year. That's really a reflection of our support. I guess that's also reflected in the fact our occupancy still remains very high. I think something like 96% in terminal retail and 99% on commercial property. That's because we've supported them through that. Obviously, we are focusing on the restart and want to make sure they are ready and whole to restart when they can. We've had fantastic feedback from our retailers on that. On the transport side, look, pleasing, I guess to some degree, still well down on the prior year. What we have seen is domestic parking recover strongly relative to passengers. We've actually seen a bit of a mode shift away from share or taxi vehicles into private vehicles. That's been helped. Our team have worked hard on also promotions and upgrade cycles to give a great customer experience. You've seen a stronger car parking exit in domestic relative to passenger activity. If you compare back to the July 20 period, you can see that separation going. That's great, and the team managed that for the full suite of products in the year. Look, turning to page 26. One of the highlights here has been our investment property, and that has continued. I think both the quality of the product we build, the feedback from tenants, the core metrics on the portfolio have remained very strong. I think we brought in roughly NZD 500 million of assets into the portfolio in the past year with Foodstuffs DC and head office, the Interwaste developments, and the spec warehouse that has now been leased at Timberlea Road. We've got a great pipeline of high-quality tenants coming through. Just as an update on the hotels, we continue to adopt our policy on the hotels, which is on hold. We're tracking recovery very closely. The Mercure, last time we would've talked, was getting close to completion on closing the façade and protecting that site. That's now all complete, and then works have stopped there. On the Te Arikinui 5-star Pullman Hotel, that work is continuing. Façade is ongoing. We will track the decision about whether we continue with that when that moment comes. Novotel has been supported by the MIQ contract there. Investment property has continued to be very strong and a real standout in this period. Really underpinning our plan to plot our way through the pandemic and out the other side, we've announced today a fashion outlet, discount fashion outlet, located on the northeastern boundary of the airport precinct, on what is the old aviation golf course that has been out of action for some time now. This is a concept we've been thinking about for quite a long period, and we obviously have some landside retail today and some discount stores in there. Really, we have been holding this until we were clear on some key actions, which really revolves around runway orientation, consenting, the associated transport planning and investment that we've been doing in the last little while, and then updating our infrastructure program focused on the domestic terminal. We wanted to confirm that and understand the path on that and be clear with that before we confirmed on the discount fashion outlet. This is a really exciting development. About 22,000 NLA, net lettable area, in this development, located away from the airport precinct, generous parking, and owner-operator or develop and operate model, where we will be the sole operator owner of this. We think that's important for the overall airport business and system, both commercially and operationally, that we're able to manage that effectively. We spent a lot of time looking at these similar developments overseas, Vancouver Airport, spent a lot of time talking to them, Brisbane and Perth and others. We think there's a real opportunity in the market for a really focused DFO development. We've had fantastic feedback from retail brands and actually through our market testing with end consumers about what they're looking for. We want this to be a really quality development in the context of what a DFO should be. We're focusing on things like retail rating, how we work on general sustainability initiatives in this context. We want to make this a really fantastic development. These things take obviously time to develop, but we are plotting our way through that path, and excited about announcing that today. I'm going to move now to page 28 and 29. Again, for a small number of team with reduced headcount, our team have worked really, really hard on many different fronts. One of the really pleasing bits of work our team right across our business have been involved in is updating our sustainability strategy and goals. We have announced a whole range of new targets. That's been matched with our updated reporting, which includes the climate change disclosure report and the greenhouse gas emissions report, explaining our impact on the world and what we're doing about it. We're not recent to this rodeo. We've been at this for a long time, over many, many years. In fact, targets we set in 2012 around sustainability focused on warming at a 1.5-degree rate, we have well surpassed. Actually, it's appropriate to reset that. We've reset that at a 2-degree scenario and have tested scenarios right through up, I think, to 4.8 degrees of warming across the world. Obviously climate change and carbon is not the only bit, but important to acknowledge carbon in the context here is a net zero by 2030 target, which I think is worth celebrating. It goes across four dimensions of purpose, place, people and community, and touches on customer satisfaction in terms of their experience of the airport, our procurements, shareholder returns, carbon, water, and waste targets, people targets around gender, and diversity and safety, and then how we can play a part in helping our community to benefit from being alongside an important economic hub for our country. Some real meaningful targets there for us to work on, mainly focused on 2030. If you're interested on page 30, you can dig into this in more detail. As is best practice, we, for the first time, have published these reports alongside our annual report. You'll be able to dig into some real detail on our disclosures in there. You'll see that we've got some things to work on, I think as every company does, but important that we put that down on paper and work towards it. Now sort of turning a little bit to outlook, and this is in a couple of phases. If I turn to page 31, we acknowledge that there's still uncertainty right now. This is a very unusual time. Nothing like this in the history of the airport over 50 odd years. We have worked hard on this and will continue to work hard on it. You would've seen the Prime Minister last week talked about the Reconnecting New Zealand strategy. I'm pleased to say our team have been leading on a lot of that work. The Prime Minister mentioned an eight-week program to look at how we might design a border model for the future. We've been central to that alongside our aviation colleagues. That is a public and private partnership model. We are determined to try and help first design it, but then also importantly convert it into a credible operating model that can be operated at the border. Underneath all that, obviously vaccine rollouts are critical, as is health capacity in the country, and health technology around testing and surveillance. I guess we are looking for clues overseas, and we can see those countries who've had a tougher road through COVID, no doubt, but have had high vaccination rates where a new normal is emerging. It's important for listeners on this call to remember that we don't need a switch back to FY 2019 to continue on with our program. We have quite a degree of flexibility to work with any recovery scenario and continue with our program. We want to be involved in helping plotting that path out with the government, we're working hard on that. What does positioning for a post-COVID world look like on page 32? Really simple. We need to work our way through reestablishing our aeronautical network and our aero commercial team. Our aero commercial team, although much smaller and not traveling nearly as much, has maintained very close contact with our airline partners around the world. We continue to get really good feedback about the desire to contact, reconnect with New Zealand. New Zealand is seen as a safe destination that's done a good job on COVID. I do still think that in the future model of travel, high-value travel, New Zealand's proposition features very strongly in that. We will work very hard on reestablishing that network, route by route, working with governments and airlines. We will work with trade here to support growth in travel and cargo, and we do want to make sure our commercial business is in great shape so that we can come out the other side in an even better position than what we were. If I then turn to 34 in terms of guidance and outlook. We are facing the uncertainties I mentioned, and that's really why we are suspending underlying earnings guidance for FY 2022. There are just too many moving parts at the moment for us to give that, and I think we'd be in constant updates to the market if we try to. Having said that, we are committing to guiding on CapEx. CapEx guided to NZD 250 million-NZD 300 million in FY 2022. That does include completing some existing projects that are underway, but also progressing the design and enabling works, as I mentioned before, about the terminal development program. We want to see that through, and it's important for you to know that that program has been part of the discussions with our banks and our partners, so they're really clear on that path. Obviously, pricing is looming on the horizon. We are consulting on whether we defer that. Obviously, with the uncertainty, it's quite hard to apply the usual building blocks model in the way that we normally would. We need to go through that process of consultation with the airlines just to work that out. I note that some of the other airports have done the same. Look, obviously, that guidance is subject to any of those material adverse changes which are becoming more frequent these days. Just finally, before I sign off and hand over the Q&A, my final results in this job. It's been a great privilege to work for this company. I'm incredibly proud of what our team has done, particularly during the pandemic period, but even pre-pandemic. They work incredibly hard, and I'm really proud of the work they do. We'll see our way through this, and I'm hoping that the work we've been putting in the last 19 months has really set that up for the future. It's also been great to work with all of you on this call. Unfortunately, we won't get a chance to meet face-to-face probably before I leave, but I just want to thank you all for your support. With that, I'll hand back to the moderator. Thank you. Ladies and gentlemen, we'll begin that Q&A session. Just once again, if you'd like to ask a question, you can just press star one on your telephone and just wait for your name to be announced. Our first question today comes from the line of Amit from Jefferies. Please ask your questions, Amit. Good morning, all. Thank you for taking my question. The first question is on the domestic hub infrastructure investment. Now, if I think correctly, you said it would be dependent on the aviation recovery as well. I was just wondering if you can talk to some of the passenger triggers you agreed with the airlines when this investment gets activated in a meaningful way. Yeah, sure. Good morning. Look, I think the way we've constructed the program and the way we're thinking about the program is in phases. We've highlighted and focused on the enabling works, that first NZD 30 million in the early part of next year as the first phase. Obviously, the next phases, where you're starting to press big buttons around spend coming out of the ground, is obviously those points where we will pause and just look at the market. It's quite hard to be precise about what specific metrics we'll be watching, but clearly, passengers will feature most highly and a combination of both domestic and international. If I try and give you a reference point, back in February, we talked about you only have to believe domestic operating roughly where it has been in the last year or so, plus roughly just over half or close to 2/3 of Tasman traffic coming back for us to be able to continue on our program completely. What that means is we don't need a full FY 2019 traffic recovery to continue on the program as we've described it. We've got quite a lot of capacity. We're in a position where when markets or passenger volume drops heavily, it's quite hard because we've got fixed costs. On the other side, when markets recover, you also get a significant amount of capacity quite quickly. That's probably a rough guide, Amit, in terms of how we'd look at it. We're obviously still quite a way away from those moments, but we are thinking about that as we construct contracts and programs. Very good. Thank you. Just another question on the PSE4. Obviously, you've said the pricing would be delayed, and you've said some of the under-recovery from lower pricing would be recovered through the years as PSE4 progresses. Can you just give a sense of, in terms of would you be still retaining the passenger volume risk in the PSE4, or would you be looking to share some of this risk, both upside and downside, with the airlines? Phil, do you want to take that one? Yeah. Yes, sure. The concept that we are consulting on is that for the period of the price freeze, effectively, we are sharing passenger aircraft movement recovery risk on that, because that year or whatever the price freeze period would flow into the building blocks models as actuals. To the extent that we had an under-return in that period, it would be made up through the forecast return over the remainder of PSE4. At the moment, we are not looking at an extended form of risk-sharing around recovery, but that is definitely something that we would need to look into in detail. Effectively, what we are talking about is a two-stage consultation. One is the consultation to freeze prices for a period while we've got the extreme levels of uncertainty on the outlook. Then we would consult on the remainder of the period. Discussions around risk sharing around passenger recovery will come into that consultation. Great. Thank you. A final question on the OpEx now. Obviously, NZD 133 million in OpEx in FY 2021. That's a 30% reduction. Good outcome. Just your view for FY 2022. Would you be able to deliver similar levels of underlying OpEx for the next year, or how sticky are some of these decreases? Yeah. Well, we did provide some guidance on the 1st of July around the OpEx outlook as well as our expected retail income. We still see that range as being relevant. I'm just trying to remember off the top of my head actually what that range was that we guided. Perhaps I'll just. I think it was NZD 160-NZD 175. Yes, that's correct. Given recent events, I think it's fair to assume that we would be aiming for something less than the top of that range. We need to work through our response to the current disruption and the extent of that will impact OpEx over FY 2022. There were a number of areas that were on hold during FY 2021 that we can't indefinitely, so we do need to incur that additional expenditure. Examples include our upcoming retender of duty free. There's quite a process that's involved with that, as well as Adrian touched on earlier, the aeronautical pricing reset. There's quite a bit of input from economists and regulatory lawyers, et cetera, that go into that, and there's some other compliance areas that we do need to pick up. We're not expecting to be able to continue at FY 2021 levels, but we are expecting to be within that guidance range that we announced in July. Okay. Understood. Thank you. That's all from me. Your next question comes from the line of Benjamin Brayshaw from Barrenjoey. Please ask your question, Benjamin. Yes. Good morning, Adrian. Thanks for the presentation and congratulations on a successful tenure as CEO. I just wanted to firstly chat about tax. There would appear to be NZD 29 million of tax expense for the second half of 2021. Could you just clarify what does that relate to, and does AIA have carry forward tax losses that it can utilize for the next 12 months? Firstly, thank you for the kind comments. I'll hand to Phil on tax. This is deferred tax expense, so it relates to the investment property revaluation, non-land component of that. It's not going to be incurred as a cash expense this financial year, and yes, we do have significant losses that we'll carry forward. Okay. Thank you. Just on the, I suppose, the covenant renegotiation, could you just clarify, has there been any change in the margin for the underlying syndicated facility? Yes. The way we went about the extensions was bilateral conversations with the five or so of the eight banks that had maturing facilities over January to April next year. The line fees and margin were part of that discussion. Taken together, there was a material reduction in overall fees through this refi compared to where we got to when we did the refinancing in April last year. Okay. Thank you. Just finally, in relation to the property portfolio, you're highlighting 185 hectares of land available for future development. Could you just talk about the composition of that? How much is available for development within The Landing, and how much is outside of The Landing and therefore presumably more long-term in opportunity? Yes. I think the available land from The Landing is around about 40 hectares of that. In terms of our total investment property land holding, we've got more like 220 hectares. There's approximately 40 hectares of that that we've tagged as not developable. That's things like riparian margins around estuaries, and other areas unsuitable for the development. Yes, it's the minority that's in The Landing. There's a significant area in the old golf course and also as you move east on Puhinui Road, to the right of the road as you're heading east. Okay. Thank you. Okay, your next question comes from the line of Andy Bowley from Forsyth Barr. Please ask your questions, Andy. Thanks, operator, and good morning, guys. Best wishes, Adrian, for the future. A couple of questions from me, the first of which is around the recovery profile. Really keen to dig into your thoughts about how things unfold here in New Zealand. There's clearly a lot of unknowns out there at the moment. I ask if we step back, we're expecting global PAX recovery back to pre-COVID levels by calendar year 2023. Maybe the way to frame my question is, could you give us an idea of how you're thinking about Auckland Airport in calendar 2023 versus pre-COVID type levels? Sure, Andy, and slightly disappointed you can get first some of the question. That breaks a streak. It's really hard to say what it looks like, and as we said consistently through this, it has been the New Zealand dimension on this. My personal view is it's going to be clunky on the way out, and it will probably happen initially slowly, and then will accelerate in terms of what the recovery shape. That curve will sort of take a while to get going and then really take off. That's all subject, though, to what we don't know around virus behavior activity and also mitigations and response. I know we're all prognosticators on viruses now, but these things do tend to fizzle out over time as vaccines sort of take place and it becomes endemic. It's just New Zealand may be slower to that path than the rest of the world. I think we've been tracking very closely, as I know you do and others do, what's happening in other markets, U.S., Europe, and others. There are still bumps, no question. Some of those domestic airlines in the U.S. are operating over FY 2019 performance. People are, I think, very keen to travel again. There will be some catch-up in there. It's also why we are very focused on how do we help safely reopen the border, and we've got a government on that. I think the government here knows, as the PM said, that we have to reconnect. It's going to be a tricky period between now and then. We want to make sure we put the effort into designing the system so it's not a hit-and-hope outcome. Look Andy, I do think in the new year you'll start to see markets recover. Naturally, Australia will always be the focus for our country. You will see other countries reconnect and some candidates that were mentioned were Singapore, Korea, and others, Taiwan. Yeah. Look, it's hard to give a clear view, but by 2023, 2024 maybe normal is getting closer again. It will be a new normal, there's no question. Some things that we have today around process will remain and be new, other things will fall away as it becomes more normalized. Sorry, Andy, that's about as good as we can give at this stage. No. Fair enough. I don't know either. I'm not sure any of us do. Second question, retail. Phil, you mentioned a couple of things. One, you mentioned concession rate reductions, and you also mentioned around the RFP process for duty-free concessions. Maybe could you elaborate on both of those. Firstly, in terms of the concession reductions, are they temporary, and how are you thinking about concession rates when borders reopen? On the RFP side of things, what's the process? What's the timing for the duty-free concessions? Yeah. I'll go to that. Look, right through this, Andy, we've taken quite a bespoke. It's been very custom to each tenant and their circumstance in the market. Certainly whether it's landside or terminal, it has been temporary in nature. We're sort of rolling. Maybe that's gone from more month to month to a slightly longer sort of window. We're constantly leaving in thresholds and metrics that allow us to restart the conversation with retailers about when now it's time to get going again. I mean, domestic, while very small compared to international, is a good example of that. We supported the domestic terminal retailers through the initial lockdown periods, got them going again, and some of them were trading ahead of where they were pre-pandemic. That's a great sign. What's important for us is the continuity through to the other side and getting going again. A lot of the hard decisions by some of those retailers have been made. As I said, our occupancy is, I think close to 96%. That's been really pleasing. Obviously we are looking ahead to the next tender cycle. Again, not sort of focused on here, but our team has done a lot of work on looking ahead to that next tender cycle and trying to think about how our replan and approach would look. What we had to land first in that sequence was the terminal integration plan and how domestic would integrate into international. We did a lot of work working through a range of options, which we don't need to go to here, but how that would work because obviously we don't want to hit a tender process with a lot of details not confirmed. Look, I think we're actually in pretty good shape. We are still focused on, I guess, a single operator model for the duty free, which is by far the vast majority of airports around the world. There's only a handful, literally like a couple globally, who run a full-service dual model. That still remains our focus. We've got to work our way through that. I think we're in good shape for that ending. Just in terms of timing of that, I think the current concessions end, what, end of next year. Yeah. Expecting still to manage the process as those expire? Or can we extend the existing concessions further because of the uncertainty? A lot of those are all parts of the calculation we need to work through. I guess we'll leave our time as long as we can to get a clearer path, a little bit like we're doing on aero pricing. I think that the greater certainty we can have on what recovery looks like, the better. I think we'll start to get clues on that Q1 to calendar year next year. That will help us. Look, no change in program right now. We're working on the basis we're running a standard program in terms of re-tender. Obviously we can modify that if we need to discuss some of the retailers as we go through. Great. Thanks, Adrian, and best wishes. Thank you. Your next question comes from Andrew Steele from Jarden. Please ask your question, Andrew. Good morning, guys. The first one from me is just on your CapEx guidance. Could you just highlight the swing factor between the top end and bottom end of the range? If you could, in particular, call out the amount of investment property expenditure that you expect. Phil, do you want to pick that one up for Andrew? Yes, sure. Hi, Andrew. The range really reflects potential range in our delivery of those CapEx plans over FY 2022. As we've talked about, particularly this time last year, we put on ice almost the entire, in excess of NZD 2 billion aeronautical CapEx program, a bit before this time last year. That means that quite a few of the redundancies were focused in that project management space. We're in the process now of ramping up that team again. It's just applying a risk adjustment to delivery of the budgeted CapEx. Sorry, what was the second part of your question, Andrew? How much within that do you expect for investment property expenditure? Oh, yeah. Investment. Yep. If you look in page 15 of the financial results, at the bottom of it, we've got the outlook for FY 2022. Investment property between NZD 50 million and NZD 65 million. Great. Thank you, Phil. Just I guess a follow-up to Andy's question on the retail side of things, how would you describe your current relationship with the two existing duty free operators? Yeah, really good. We're in constant contact, both head office and more local offices. Look, they're going through the same thing in parallels, it's actually not dissimilar to the airlines, right? There's nothing like an existential crisis to bring everyone together. Look, it's very regular. That applies not only to the duty-free guys, but all the retailers. Great. Thank you. Just last one from me is just on the change in profile of capitalization of OpEx and interest costs. What's the level of those two numbers do you expect for FY 2023 to FY 2022? We'll have to come back to you on that one, Andrew. I actually don't have that at my fingertips. We are restarting a number of projects, so we would expect capitalized interest to increase reasonably significantly in FY 2022. Great. That's all from me. Thanks, guys. Your next question comes from the line of Wade Gardiner from Craigs Investment. Please ask your question, Wade. Hi, guys. Just want to labor the point on retail. Outside of the duty-free operators, are there a number of other tenders? I understand we know the timing of the duty-free, but some of the other retailers are on different timing, is my understanding. Are there a number of those that are also expiring, and are you comfortable that they will be happy renewing contract? Good day, Wade. Look, the timing is different, you're right. I can't off the top remember exactly when the sequence is. If you think about when we went through that cycle, duty-free certainly came out of the blocks first and was contracted some 18 or 24 months, I think, before the new space was complete. There is a profile to the expiry, which starts really with duty-free. Look, in terms of what that means out the other side, look, it's still a little bit hard to say because we're not alone in this. This is a global issue. Some of the retailers are global, some of them are more local and local operators. I don't want to pretend it's going to be a perfect pivot out the other side, and there will be some bumps no doubt for some of them as they spin up and start going again. Look, the best thing we can do, the most that we can do to stay in control around destiny is to stay close to them, support them, and keep them operating on the return path. Sorry, that's probably all I can say, Wade. Until we get there, it's a little hard to say. Okay. Just on the aero discussions, can you give a bit of color on how far through those discussions are you? Is the clawback of FY 2023 going to be a sticking point? Yeah. We have completed the initial round of consultations, so we've had feedback on the proposal. We are working with BARNZ. We'll come back to a couple of the airlines regarding their request. We would expect to have that completed. We have an Aeronautical Pricing Committee meeting coming up in November, so we want to run that to ground by then. Yeah, there's certainly a strong understanding of why we would expect to recover under earnings in the first year if that's the period of any price freeze. You may recall that this is quite similar to the approach that Wellington Airport adopted. Unlike Wellington Airport, though, we're not seeking to recover in PSE4 the several hundred million of aeronautical losses that we've incurred as a result of COVID. Wellington, COVID actually spanned its pricing period that was consulting on, so it's been able to forecast to recover those losses. Those are the sort of things that are under discussion, and we haven't quite landed it. Okay. Just final question. The retail guidance that you gave in early July, that was clearly before this most recent lockdown and I think also prior to New South Wales really, cases taking off. Are you still comfortable with that retail range? Should we assume that given the current situation, you'd be more comfortable with the low end than the high end? Yes, that's a valid assumption, Wade. As in the low end of the range is a better guide now. Okay. That's all from me. Your next question comes from Suraj Nebhani from Citigroup. Please ask your question, Suraj. Good morning, everyone. Thanks for taking the question. Firstly, sorry to harp on about retail, but just wanted to get something clear. When exactly does the duty-free contract expire, please? Yes, Suraj, it's not a contract, it's two contracts, and the two don't expire at the same time, so they're split. From memory, it's towards the end of next year and a period thereafter, some half a year or something after that. Okay. Thank you. Just one for Phil. I think you were talking about the additional costs through FY 2022, the ones included in the NZD 160 million-NZD 175 million number. Can you just provide a bit more detail on that, Phil? We are rebuilding teams, so there's going to be additional headcount will come through there. I mentioned the consulting and legal work around aeronautical pricing reset. There's similar work around the duty-free retender. Also we had significant savings in outsourced operations, so the likes of car park operation, park and ride, valet in particular, and also cleaning with operation of the red zone separate processing facility in Pier B, that's incurring additional costs that will carry forward. Those are all the categories that are contributing to that step-up in OpEx in FY 2022. Okay. All right. Is it possible to quantify them, and is there any flex around those items depending on how the lockdowns progress? Yes, there is. We see the flex as being reflected in that range that we provided back in July, NZD 160-NZD 175. Okay. On the debt cost, I think, Phil, you were talking about a reduction in the overall fees. Are you still able to quantify that or give some numbers around the debt cost expectations for FY 2022, maybe? Yeah. The best guidance is to reiterate that we're expecting, on a normalized basis, interest expense to reduce by a little bit over NZD 10 million for FY 2022 going forward. It was roughly NZD 70 million pre the abnormals through the restructuring expenses in FY 2021. Got it. Okay. That makes sense. Thank you. Okay, your next question comes from Marcus Curley from UBS. Please ask your question, Marcus. Thanks. Can we just start maybe, Adrian, with where you see the key gateways next year for border reopening, in particular, what needs to happen to get Australia back operating? Well, look, the gateways, I mean, look, the attention we're going to focus on is obviously Australia, as you sort of finished on. That's going to be fundamental, both from a personal connection, commercial, and tourism point of view. It's a critical market. We got most of the way there, and that was great. It was building, actually. While it was not where it needed to be longer term, it was building strongly. Look, that's an obvious place to start, and I think we should be realistic that a vaccinated traveler pathway rather than the quarantine-free traveler unvaccinated model that was there before is how it's going to restart, I think given the outbreak of Delta in New South Wales and the rest of Australia and now here. A vaccinated pathway to Australia I think is probably realistic. Beyond that, I think it'll be a little bit the start again from the beginning and go to where your fundamental routes were before it started expanding significantly in the sort of 2016, 2017 era. Singapore would be an obvious one. Probably Korea, Taiwan, you'd look to the U.S. as obvious candidates. The Emirati hubs, there's a lot of cargo going that way at the moment, they would be natural. What it will depend on is how those hubs operate their infrastructure. It's something we've been dealing with. They have significant infrastructure and will be able to operate potentially different traveler types and/or process to make reconnection here work. It's actually that detail, Marcus, that we need to work through this Make Work Work program, because ultimately, New Zealand has to decide what it needs from here. We are a small country, right? We've got to be realistic around that, and I think that's a dose of operating reality we need to advise the government on in terms of what can be achieved at those ports. Yeah, I would start from the simple principle of go to the core hub routes that we had in the early part of our network before 2016, 2017, and then build back from there. The biggest swing factor is probably China, I think, and that will really depend on both China's attitude and New Zealand's attitude. They're world-class at getting people tested and vaccinated in a short period of time. I think if they can work that out and New Zealand wants to reconnect with that market, which it does, that will be the thing that will probably shape the speed of the recovery. In your discussions with the government, or can you provide any color on whether there is a minimum threshold for New Zealand vaccination levels before a vaccine passport traveler from Australia can enter our country? No. Look, I can't give any color on that, unfortunately, Marcus. That's really a question for the government. We'll try and make it work, whatever standard they choose to. I think the key thing, I think this was mentioned last week, was the intent to open and the sort of sense that it's figuring out how to do that and no hard target on vaccination. In a way, you could argue that was smart because it allows a more nuanced approach to our vaccination status in the country as we understand what the rollout looks like. In a roundabout way, as I said, the current outbreak might encourage vaccination rates to go quickly as it has in New South Wales. That might accelerate whatever metrics the scientists and the advisors to the government are thinking about in terms of what reopening looks like. I think they understand, though, both the human impact and the commercial impact on being disconnected from the world means. Figuring out that answer is, I think they really understand we've got to get on with it. Secondly, has there been any change in the dividend policy? What are you thinking around the dividend policy post the covenant changes? I'll dive in there, Marcus. Yeah. The dividend policy hasn't changed. However, we are still under a dividend blocker. The existing covenant waivers are in place until 1st of January next year. Our dividend policy is to pay, obviously, dividends out of underlying profit. It will very much depend on the recovery over FY 2022 and 2023, the extent to which there's this funding through underlying profit to pay a dividend. This will be re-examined by the board probably around about this time next year. There is a possibility that dividend policy may change, reflecting what we've experienced through COVID. Okay, thank you. Just on the new outlet center. I know it's early days, but any sort of ballpark on the CapEx investment there and potential timing? Look, it's probably a, I mean, this is a rough guide, right? There's milestones we have to get through. Probably a few, which in retrospect, probably a four-year project. Look, we haven't disclosed any numbers, but it's a meaningful project, if I can call it that. Look, as we get further through the project, I think we'll be able to talk more about that. You can kind of get a sense of scale, 20-some thousand squares net lettable area. It's a meaningful size project. Look, Marcus, we'll come back to that once we get through the project a bit more. Okay. Just finally, just hopeful as well. You mentioned interest costs. Can you give any guidance on where you think depreciation lands next year? Yeah, most of the projects will be ongoing, the CapEx projects that are in place today. There will be likely a small uplift, but not significant, certainly not at the level we experienced between FY 2020 and FY 2021. Okay. Thank you very much. Your final question comes from Jason Hamilton from the ACC. Please ask your question, Jason. Hi. Good afternoon, guys. Sort of Marcus stole mine a little bit. Just on the outlet centre, can you just talk about what sort of metrics, what hurdles you're looking at, what sort of yield and costs you're targeting? Just for clarity, you will be the owner, sole landlord, et cetera, so taking all tenant risk, et cetera? Yeah. Look, that's right, Jason, and that's actually an important part of the story. We did think about this, and you can imagine these are well-understood operations and commercial businesses globally, and so there's real interest in this kind of concept. We thought about it as part of a total system, and we talked many times before about how we saw the future of our retail business emerging through four different dimensions, including the online channel, as well as terminal, off terminal, and then land side. This is the final leg, I guess, to some degree, of that retail stuff, that strategy coming to bear. In terms of metrics, I think what I would really refer you to, and I won't sort of talk about those, but we've looked at local examples, looked at square meter rates there in terms of rental rates, and compared them. We have a pretty good handle, I think, on what that looks like. I think it's a very attractive proposition from that point of view for us. We've had excellent feedback, and I can't underdo this, but we have been working very closely across Australia and New Zealand. Pre-pandemic, we were doing work on this, talking to brands in Aussie and NZ, as well as doing a lot of consumer research and qual and quant work. Some of our feedback has been exceptional. It's been really strong. I think both on a commercial analysis, using our reference cases, and based on tenant feedback and consumer feedback, I think it's a very exciting prospect, and it is complementary, and I think that's been a big part of our thinking. The overlaps with our terminal activity and online stuff, I think we can really focus on complementary because there are brands that just don't and won't fit in a terminal environment that we've been missing out on. We know there are products around Auckland where some of those brands don't fit what they want to do in a DFO style model. I think this proposition, the feedback we've had, absolutely fits that gap. Yeah. I know that's not specific, Jason, but hopefully that gives you a rough guide how we're looking at it. Okay. Just on retail. I just want to labor the point. If we look back to when you gave that guidance on 1st July, NZD 25 million-NZD 30 million, NZD 35 million. You look at what you delivered this year. To the bottom end, there's not much of a step up. Clearly, when you gave the guidance, the Tasman bubble was operating. There was probably an expectation at some stage might see a bit more international traffic coming back. I'm just trying to understand why this uplift wasn't expected to be greater. I guess I'll marry that with what you said today around passenger spend rates by those travelers who were heading across to Tasman being back above or back to 2019 levels. I'm just surprised that that number wasn't higher when you guided back in 1st July. Can you just allude to why that is the case? Perhaps I'll dive in there. It reflects the level of relief that we're providing to international retailers at the moment. As I mentioned, it's a combination of MAG relief notes, so no MAG, and also some reduction in concession rates. Probably fair to say, we tend to take a conservative approach to our recovery assumptions, which we know were below market consensus. Of course, that's changed dramatically now with the Tasman bubble closed and the lockdown we're experiencing in N.Z. Just one, final one. Just on the new covenants, I'm right in thinking that they apply on a calendar year basis rather than financial year basis, i.e., start applying from 1st of January 2022 and then 1st of January 2023? Actually, they apply on a rolling 12-month basis, and they're only measured twice a year. They're measured at 30th of June and 31st of December. We express them in terms of calendar years because the metrics themselves adjust on a calendar year basis. 2.0 x for calendar 2022, 2.5x for 2023, 3 x from 30th of June 2024 onwards. Okay. To assess, the covenant as at this time next year for the full year 2022 result will be based on the 2x number, which applies to the whole of calendar year 2022. Yes, that's right. I'll just re-emphasize that it's equivalent to our EBITDA measure that excludes fair value changes and associates. Cool. No worries. Adrian, all the best. Thank you for your great stewardship of the Airport. You've done a fantastic job. Obviously, it hasn't been the last 18 months or so that, I guess, you or perhaps other people have planned for. Well done, and all the best for the future. Appreciate it, Jason. Thank you. Once again, just star one to ask a question. [inaudible], question we've got from Paul Butler from Credit Suisse. Please ask your question, Paul. Hi. Thank you. I just wanted to ask about your proposal to delay the PSE4 regulatory pricing for 12 months. Look, I completely appreciate that there's a good deal of uncertainty in trying to do that now. I'm just wondering, apart from volume forecasts, what are the key inputs that are difficult to nail down? Just question, is there not an opportunity to do that now in an environment where there's uncertainty, where potentially you could argue for higher returns because of that uncertainty? Building blocks, the key components in the forecast are forecast, obviously, passenger numbers or units of demand, because you use them to divide your required revenue by to get prices. Forecast operating expenditure and forecast capital expenditure. The elements that are most uncertain there are certainly units of demand, I should say, passenger numbers and MCTOW. We are somewhat concerned that there will still be significant uncertainty on that come around May next year when we'd have to set prices. The problem of having that uncertainty is then it becomes difficult to reach agreement between airlines and the airports. Naturally, airlines argue for a strong recovery so that the unit prices are lower, and airports tend to base it on what evidence we're seeing at the time. It's not helpful to have a big scrap around your forecast demand assumptions, and that's part of the reason why we would prefer to put off the decision until we have greater alignment with the airlines on the recovery. Also, as we touched on earlier, we've got a significant aeronautical infrastructure program that we're targeting moving forward. Other than the enabling works per FY 2022 CapEx guidance, the rest of that program isn't yet triggered. As Adrian touched on, we would need to see something like the Tasman reopening at circa 2/3 of pre-COVID levels to trigger the whole program. It's a moot point whether or not we'll be at that at the time that we need to set prices. On the question of what about target return, yes, there is certainly evidence that we have compiled with expert advisors that would suggest that there is an argument around target return, systematic risk associated with COVID, and risk of pandemics. We will apply that. The pricing period, even if it was deferred, would start from 1st of July next year. We would have to calculate weighted average cost of capital and our target return from the 1st of July next year. That would simply apply for the five-year period. As we touched on, the first period during price freeze would be based on actuals rather than forecast. Certainly, any arguments around a weighted average cost of capital and target return will apply right from the beginning of that period. Thanks very much. Okay. With that, there's no further questions. I might hand the call back to you for now, Adrian, to perhaps for some concluding remarks. Great. Well, thank you everyone. Really appreciate the questions, and thanks again for your support over the past year and obviously beyond. I just wanted again to finish by thanking our team for an unbelievable effort the last 18 months. They've done themselves proud, and I think the results and the path out reflects their hard work. Thanks again, everyone. Hope you have a good day, and hope lockdown goes okay for you. Thank you. Ladies and gentlemen, that does conclude today's conference call. Once again, thank you all for participating today. You may now all disconnect.