New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Aeronautical returns: AIA will continue to generate aeronautical returns in excess of its 'true market' WACC applied by the marginal investor, despite the Commerce Commission's (ComCom) potential move to lower the target returns available for airports.</li><li>RAB multiple highlights the incentive to invest: Returns in excess of cost of capital create value in most valuation frameworks</li><li>Aeronautical currently represents less than a third of group value: We expect AIA's aeronautical business to represent ~56% of group EBITDA in FY28 (once the step-up in PSE5 pricing is absorbed in earnings), but only ~33% of pre-tax earnings, given its increasing depreciation and interest burden</li></ul>

Aeronautical returns: AIA will continue to generate aeronautical returns in excess of its 'true market' WACC applied by the marginal investor, despite the Commerce Commission's (ComCom) potential move to lower the target returns available for airports.RAB multiple highlights the incentive to invest: Returns in excess of cost of capital create value in most valuation frameworksAeronautical currently represents less than a third of group value: We expect AIA's aeronautical business to represent ~56% of group EBITDA in FY28 (once the step-up in PSE5 pricing is absorbed in earnings), but only ~33% of pre-tax earnings, given its increasing depreciation and interest burden

Auckland Airport: Still Incentivised to Invest

Auckland Intl Airport

Auckland Airport: Still Incentivised to Invest