ACI ConferenceMontreal 2016

Amit RikhyPresident and CEO

Global Sector Trends

• Investors more comfortable with airport asset class

• Field becoming ever-more crowded

• Governments finding political will to privatize

• Secondary market in early-adopter countries

• Wide variety of models for private participation

P3 in Airport Sector is Nothing NewP3 in airports have been ongoing for the past 30 years, but mostly outside the US

Thailand Airports1989, 1996, 2002

Melbourne1997

Sydney2002

Auckland1989

Wellington1998

Malaysia Airports1999

Cambodia Airports1995, 2001, 2006

Meilan-Hainan, 2002Macau, 1989

Cheongju2012

Tokyo-Haneda, 1990

Kansai-Osaka, 2015

Beijing2005

Schenzen, 1998

Delhi, 2008

Bangalore, 2004

Male2010

Mumbai, 2006

Hyderabad, 2005

Amman, 2007

Macedonia, 2008 Tbilisi, 2008

St. Petersburg2009

Brussels, 2004

Berlin, 2000

Dusseldorf, 1997

Skavsta1998

Hamburg, 2000

London Airports, 1987Midlands, 1994

London Luton, 1998Belfast, 1993

Budapest, 2005Vienna, 1991

Athens1995 Larnaka, 2006

Cairo, 2001

Copenhagen1992

Nantes, 2010

Turin, 2000

Rome, 1997

Naples, 1997Malta, 2002

Madinah2011

Kilamanjaro1998

South Africa1998

Anatolya, 2007

Zagreb, 2012

Montevideo1999

Sao Paulo2012

Belo Horizonte, 2013

Brasilia, 2012

Rio-Galeao, 2013

Natal, 2011

Bolivia, 1997

Isla Margarita, 1994

Dominican Republic, 2000

Nassau, 2006

San Juan, 2012

Hamilton1995

New York JFK, 1996

La Guardia, 2016

Stewart1998

Toronto1989

Branson2009

Orlando Sanford1997Mexico

(GAP, ASUR, OMA)1998, 1999, 2000

Montego Bay, 2001Honduras, 2000Liberia, 2009San Jose, 2000

Medellin, 2008

French Polynesia2010

Northeast Colombia, 2010Quito, 2002

Lima, 2000

Santiago1997,2015

Argentina1998

Bogota, 1994, 2006

Guayaquil2003

Source: ICF SH&E; internal research

Note: Sample of major global transactions; not all transactions are shown

Barranquilla, 2014

Jeddah2006

Nice 2016

Toulouse, 2014

Greek Regionals

2015

Zurich2000

Lyon 2016

Brisbane1997Perth

1997

Sochi, 2006

Moscow (Sheremetyevo)

2015 Moscow (Domodedovo)

2001

Common Misconceptions of Airport P3s

4

Public authority retains ownership,

control and oversight

Loss of Control

Focus on efficiency, street pricing, better choice, overall lower

user cost

Cost Increases / Higher Prices

Make airport more competitive / equal

access

Less Competition

Staff retained, Competitive wages,

pay-for-performance,

training and mobility

Labor Concerns

Long term investments and

thinking

Short-term Focus

Strict compliance with

environmental laws, sustainability

programs, energy efficiency

Environmental

US Airports – Historical Impediments

Changes in aviation industry are lessening these historical impediments

Low-cost financing

Airline control

Competing priorities

Misconceptions on P3s

Lack of political will / social context

Procurement processes

US Airports – Key Trends

ACI estimates US airports need $75.7bn to fund capex

Potential Congressional removal of financing

tax-exemptions

Reduction in federal grants + cap on PFCs

Strained balance sheets

Aging/commercially inadequate facilities

Users seeking faster solutions

Competition among airports

Airline consolidation and change in pax mix

P3 Airport Models in the US

Different P3 Models have been tested in the US market

P3 MODEL P3 EXAMPLE

Concession (FAA Pilot Program)

• Stewart (SWF)• San Juan (SJU)

ManagementContract (O&M)

• Atlanta Hartsfield (ATL)• Burbank Airport (BUR)• Indianapolis (RDU)

Terminal Lease orConcession

• JFK T4 (JFK)• Orlando Sanford (SFB)• LaGuardia (LGA)

How Do We Get There

• Educate authorities and staff on P3 benefits

• Allow flexibility in scopes so private sector can innovate

• Apply “Lessons Learned” from precedent global P3s

• Persistence

• Political will and social context

Public authorities transition fromOperators to Regulators

•Align stakeholders

•Clear requirements

•Defined schedule and

process

•Allocate risks properly

•Responsiveness and

flexibility

•Maintain transparency

Global Lessons Learned

THANK YOU