Brief to the 3rd Annual Future Projects Summit M h  31 March, 2011

Scott Clements, President  & CEO FMAALindsay Munn, STANTEC

Going Forward Together

W     ibl   t d   f    i t  We are responsible stewards of our airport, achieving superior performance in the 

d t  f  f     ff ti   d conduct of safe, secure, effective and efficient operations.  Our airport businesses contribute significantly to the economy of  contribute significantly to the economy of  

both the Region and the Province.

Going Forward Together

We are Canada’s Premier Regional We are Canada s Premier Regional Airport, connecting the World to the 

P l  R   d O i i  i   h  People, Resources and Opportunities in the Wood Buffalo Region

Board of DirectorsGoing Forward Together

Board of Directors

Jon McKenzie – Oil Sands Development Group – (VP Suncor) CHAIR

Sheldon Schroeder – Oil Sands Development Group – (VP CNRL)Jeff Fitzner – FM Chamber of Commerce – (CEO CASMAN Construction)( )Mildred Ralph – FM Chamber of Commerce – (SNC Lavalin, O&M Logistic Inc)Allan Kallal - RMWB –– (CFO RMWB School Board)Roy Williams RMWB (Stantec)Roy Williams – RMWB – (Stantec)Bernd Wehmeyer - RMWB – (Suncor – Manager Firebag Aerodrome)Roxanne Wells-Devaney – CUPE – (Riverside Mediation)

Peter Wallis - At Large – (ExDir VanHorne Institute)At Large – Open – Active Recruitment

Committee StructureStanding Committees

GovernanceFinance and AuditStrategic and Risk Management

Ad H  C ittAd Hoc CommitteeMajor Capital Project

Governance PrinciplesAct as a Governance BoardMeet as required to satisfy Governance principlesOperate within defined Board MandateOperate within defined Board MandateCommittees do the detail work and considerationsBoard Meetings well planned and prepared with major issues brought through committee recommendationsHigh expectations of Board Members (energy, participation, attendance, decorum)participation, attendance, decorum)Focus on assisting Management to achieve Business Plan ObjectivesE j  th  h   d  iEnjoy the honour and experience

Annual Cycle for Strategic PlanningGoing Forward Together

Vision/Mission/Values

Strategic Plan

Key Success Drivers Key Success Drivers 

Strategic Goals for each KSD

Annual Corporate Objectives for each KSD

A l B i  PlAnnual Business Plan

Annual Individual Performance Objectives 

Planning Cycle Going Forward Together

a g Cyc ePhase I:Preparation ‐ Input

Phase V:Ongoing Measurement

Preparation  Input

JulyJulyQuarterlyQuarterly

Phase IV:Communication

DecemberDecember

Aug‐OctAug‐Oct

NovemberNovember

Phase II:Planning

Phase III:A lApproval

We are  through Year One

Going Forward Together

Core ValuesSafety , Security and Environmenty y

We conduct our businesses in a culture of safety and security that promotes best practices and sharing of experience and mutual support.   We are sensitive to  and support sustainable  environmental  processes.

Commercially Focused Accountability and Fiscal ResponsibilityWe have adopted a commercial operating philosophy/culture and operate the airport as a robust business  We maintain a strategic focus on risk mitigation and financial strength   robust business. We maintain a strategic focus on risk mitigation and financial strength.  

Exemplary Customer Service through TeamworkW     t   i  l d    T th   ith    t k h ld      T  Fl F tM  We are customer service leaders.   Together with our stakeholders, we are Team FlyFortMac with a common goal of superior service. 

LeadershipLeadershipWe value leadership with integrity and innovation in support of our Vision.

K S D i

Going Forward Together

Key Success Drivers1. To Be a High Performing Organization1. To Be a High Performing Organization

Strategic Goals ‐‐‐> Annual Corporate Objectives

T  O ti i  th  C t  E i2. To Optimize the Customer ExperienceStrategic Goals ‐‐‐> Annual Corporate Objectives

3. To Achieve Sustainable and Profitable GrowthStrategic Goals ‐‐‐> Annual Corporate Objectives

4. To Foster Effective Stakeholder RelationshipsStrategic Goals ‐‐‐> Annual Corporate Objectivesg p j

Key Success Driver 1 ‐ To be a High Performing Organization

2011 Business Plan Corporate Objectives Summary

Key Success Driver 1 ‐ To be a High Performing OrganizationObjective 1.1:   To have a robust Strategic Planning and Performance Measurement Program, that incorporates Enterprise Risk Management and includes an Airport Master Plan and an Airport Area Structure PlanObjective 1.2:  To develop a Succession Planning Program for the Board and Senior ManagementObjective 1.3:  To develop and implement the 2011 component of a Health and Safety StrategyObjective 1.4:   To develop a process for benchmarking our performance as a high quality employer and organization

Key Success Driver 2 ‐ To Optimize the Customer Experienceb h % lObjective 2.1:  To Achieve 100% Operational Status.

Objective 2.2:  To play a lead role in 2011 in the CRISP Air Transportation Process and optimize the amount of provincial capital funding for selected airport infrastructure projects Objective 2.3:  To implement the 2011 Phase of the Major Capital ProjectObj ti     T  i l t th    O ti  C it l E dit  PlObjective 2.4:  To implement the 2011 Operations Capital Expenditure PlanObjective 2.5:  To develop and implement the 2011 Phase of the Customer Satisfaction PlanObjective 2.6:  To achieve the 2011 Phase of Optimal Air Service as follows:

Key Success Driver 3 – To Achieve Sustainable and Profitable GrowthObj ti     T  d l   d i l t th    Ph   f th  B i  D l t PlObjective 3.1:  To develop and implement the 2011 Phase of the Business Development PlanObjective 3.2:  To develop and implement the 2011 Phase of the Multi Year Financial Strategy

Key Success Driver 4 – To Foster Effective Stakeholder Relationships Objective 4.1:  To develop and implement the 2011 portion of the Stakeholder Engagement ProgramProgramObjective 4.2:  To develop and implement the 2011 portion of the Community Investment ProgramObjective 4.3:  To develop and implement the 2011 portion of the Media Relations Program

Example of an Annual Corporate ObjectiveObjective 2.1:  To Achieve 100% Operational Status.Description

This will be a recurring annual objective.  Our mission is to operate our facilities achieving superior f  f   ff i   d  ffi i   i   Thi   bj i   ill d fi   d  if   hi  performance for effective and efficient operations.  This objective will define and quantify this 

performance.

Ownership Office of Prime Interest (OPI):  COOOffices of Collateral Interest (OCI):  COO, CFO, Bruce Ferguson, Team FlyFortMac

The ActivityWe strive to keep our facilities and operations open at all times.  We provide the equipment, trained people and refined procedures to ensure this.  It is a constant effort, with weather and regulatory p p p , g yjurisdictions (NAVCAN, Airlines/air operations, Taxis, Labour Actions/Noise) often mounting significant challenges.  

MeasurementThe measurement of our operation readiness has been in place for some time.   If the runways are p p yclosed there are always attributable reasons documented.  It is the same for any of our facilities: fire hall, maintenance garage, terminal, administration.  When jurisdictions are having problems we will draw upon Team FlyFortMac to help resolve issues in an expedient manner.  The overall record of operational readiness will be the standard for measuring this objective.

h ( f f )Weighting (8 Points of 40 for KSD 2)2 points for thorough documentation of operational readiness6 total  ‐ 1 point per percentage facilities down time (due to FMAA) from 94% through 100%

1.1 To have a robust Strategic Planning and Performance Measurement Program, that incorporates Enterprise Risk Management and includes an Airport Master Plan and an

8 pts

ObjectivesScoreKSDs1.1 To have a robust Strategic Planning and Performance Measurement Program, that

incorporates Enterprise Risk Management and includes an Airport Master Plan and an8 pts

ObjectivesScoreKSDs

1.3 To develop and implement the 2011 component of a Health and Safety Strategy 6 pts

1.2 To develop a Succession Planning Program for the Board and Senior Management.6 pts

incorporates Enterprise Risk Management and includes an Airport Master Plan and an Airport Area Structure Plan.KSD 1 – Be a High

Performing Organization

(25%) 1.3 To develop and implement the 2011 component of a Health and Safety Strategy 6 pts

1.2 To develop a Succession Planning Program for the Board and Senior Management.6 pts

incorporates Enterprise Risk Management and includes an Airport Master Plan and an Airport Area Structure Plan.KSD 1 – Be a High

Performing Organization

(25%)

2 2 To play a lead role in 2011 in the CRISP Air Transportation Process and optimize the3 pts

2.1 To Achieve 100% Operational Status.8 ptsKSD 2 – Optimized Customer Experience

1.4 To develop a process for benchmarking our performance as a high quality employer and organization.

5 pts( %)

2 2 To play a lead role in 2011 in the CRISP Air Transportation Process and optimize the3 pts

2.1 To Achieve 100% Operational Status.8 ptsKSD 2 – Optimized Customer Experience

1.4 To develop a process for benchmarking our performance as a high quality employer and organization.

5 pts( %)

2.4 To implement the 2011 Operations Capital Expenditure Plan.2 pts

2.3 To implement the 2011 Phase of the Major Capital Project.15 pts

2.2 To play a lead role in 2011 in the CRISP Air Transportation Process and optimize the amount of provincial capital funding for selected airport infrastructure projects.

3 ptsp(40%)

2.4 To implement the 2011 Operations Capital Expenditure Plan.2 pts

2.3 To implement the 2011 Phase of the Major Capital Project.15 pts

2.2 To play a lead role in 2011 in the CRISP Air Transportation Process and optimize the amount of provincial capital funding for selected airport infrastructure projects.

3 ptsp(40%)

3.1 To develop and implement the 2011 Phase of the Business Development Plan.8 ptsKSD 3 – Environmentally Responsible

2.6 To achieve the 2011 Phase of Optimal Air Service.7 pts

2.5 To develop and implement the 2011 Phase of the Customer Satisfaction Plan. 5 pts

3.1 To develop and implement the 2011 Phase of the Business Development Plan.8 ptsKSD 3 – Environmentally Responsible

2.6 To achieve the 2011 Phase of Optimal Air Service.7 pts

2.5 To develop and implement the 2011 Phase of the Customer Satisfaction Plan. 5 pts

3.2 To develop and implement the 2011 Phase of the Multi Year Financial Strategy.12 ptsResponsible Sustainable and

Profitable Growth(20%)

3.2 To develop and implement the 2011 Phase of the Multi Year Financial Strategy.12 ptsResponsible Sustainable and

Profitable Growth(20%)

4.3 To develop and implement the 2011 portion of the Media Relations Program.5 pts

4.2 To develop and implement the 2011 portion of the Community Investment Program.5 pts

4.1 To develop and implement the 2011 portion of the Stakeholder Engagement Program.5 ptsKSD 4 – Effective Stakeholder

Relationships(15%) 4.3 To develop and implement the 2011 portion of the Media Relations Program.5 pts

4.2 To develop and implement the 2011 portion of the Community Investment Program.5 pts

4.1 To develop and implement the 2011 portion of the Stakeholder Engagement Program.5 ptsKSD 4 – Effective Stakeholder

Relationships(15%)

Key PlansMaster Plan – 30 Years – in progressArea Structure Plan – Municipal – Under revisionFive Year Rolling Strategic Plan ‐ Done2011 Business Plan – DoneMajor Capital Project Implementation Plan – DoneBusiness Development Plan – In progressEnterprise Risk Management Plan – In process

All  l  i   l    i  d fAll plans in place or in draft

Going Forward Together

Management TeamPresident & CEO – Scott ClementsCOO – Sally WarfordCFO – Ter HamerBusiness Development – Jim Meyer (LeighFisher)Project Management – Bruce Ferguson (Stantec)Engineering – Brad Pryde (PSMI)g g yArchitects – Steve McFarlane (MGB)Legal Counsel – Ron Odynski (Ogilvie LLP)Real Estate Management – Ken Williamson (Colliers)g ( )Auditors – Deloitte’sBankers – RBCLong Term Lenders – Alberta Capital Finance Authorityg C p y

Management PrinciplesKnow and follow FMAA Guiding PrinciplesWork as a TeamComprehend the Strategic Plan and Business PlanPrepare ahead, anticipateHigh expectations (energy, participation, initiative)Ask for help when neededBe boldEnjoy the experience

Rolling 12 Month  ‐ PassengersGoing Forward Together800,000

2009

2010o g o t asse ge s

600 000

700,000

2008

2010

500,000

600,000

400,000

2007

300,000

2006

2005

200,000Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

5

2004

Rolling 12 Months Passenger Count

750,0002011 Projected

2010

2009

740,000

730,000

720,000

710,000

700,000

690,000Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Whitehorse ‐ 32 * Airports < 1 Million Passengers

Going Forward Together

Fredricton ‐ 29 *

Saint John ‐ 30 *

Kamloops ‐ 31 *

g

The asterisks represent  all airports with some form of Customs at the Airport.  Of the top 32 Airports in Canadaonly two do not have any Customs – Fort McMurray (15)

d G d  P i i  ( )

Comox ‐ 26 *

Charlottetown ‐ 27 *

Deer Lake ‐ 28 * and Grande Prairie (23)

Grande Prairie ‐ 23

Victoria Harbour ‐ 24 *

Yellowknife ‐ 25 *

2009

2008

2007

London ‐ 20 *

Prince George ‐ 21 *

Vancouver Harbour ‐ 22 *7

Hamilton ‐ 17 *

Moncton ‐ 18 *

Abbotsford ‐ 19 *

0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

Fort McMurray ‐ 15

Thunder Bay ‐ 16 *

G th P j ti 2010

Going Forward Together

Growth Projection 2010Actual Moderate (CAPP) Medium (AMC) Low High

1,400,000

1,600,000

Actual Moderate (CAPP) Medium (AMC) Low High

High

We assume the Medium Line   2 % Annual

We assume the medium scenario in our Plan1,000,000

1,200,000

L

Moderate

MediumWe assume the Medium Line = 2.5% Annual

600,000

800,000Low

200,000

400,000

01988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030

Going Forward Together

Air Cargo Potential is there – verifying dataWill be part of the business development planWill be part of the business development planCould use the current terminal for cargoInvestigating Port of Entry status for Cargovest gat g o t o t y status o Ca goMay lead to a longer runway

Air Service DevelopmentsWorking with Air Canada and Westjet to offer many new business opportunities both domestic and international

Westjet starting Toronto Daily ServiceAir Canada upgrading Toronto Service

Working with Regional partners to improve servicesGrande PrairieSaskatoonRed DeerKelowna

Building the case for early and long term international services

Las VegasgMexico

Going Forward Together

Terminal ImprovementsParking – 182 news stallsSafety in the walking/parking areaf y g p gFood and Beverage – Subway and Delaney’sCounters – fully leasedAdvertising/InformationAirport Team Visibility/InformationCl li /Di  Miti tiCleanliness/Disease MitigationSecurity Area – New hold room and second bridge.Offices – New Administration BuildingOffices  New Administration BuildingImprovements to building utilities, appearance

Going Forward Together

The right plan for the futureThe right plan for the future

The Airport Development PlanGoing Forward Together

Noise Contours 2016

Going Forward Together

Positive PointsWe have the confidence of our Community behind usyTeam “FlyFortMac” is moving ahead togetherWe have the airlines onsideThe Province is onside – CRISP, ACFAWe are confident that the Region will growOur Governance is solidOur Management is competentAn outstanding first year as an AuthorityA Clear and Shared Bold Vision

Big Challenge on $$$$$$$$$

70 00075,000 80,000

Total Operating Revenues

HISTORICAL AND PROJECTED FINANCIAL DATAMedium Case

40 00045,000 50,000 55,000 60,000 65,000 70,000 OpEx

Debt service, capital costs and OpEx

(000

's)

10 00015,000 20,000 25,000 30,000 35,000 40,000

Dol

lars

- 5,000

10,000

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Sources: Historical: Fort McMurray Airport. Projected: LeighFisher, November 2010.Note: Individual cost categories are stacked so as to show net revenues versus total revenues.

Opportunities for more $$$$Accelerated GrowthPublic SupportReal Estate (Current and new)Alberta Oil Sands (AOS)Cost Controls – Project and Operations

RMWB PartnershipMOU signed to effect transfer of land and chattelsSide letter to outline relationship/partnership

Urban BoundaryCompatible Land UseT tiTaxationCRISP ImplementationSewage IssuesSewage IssuesPort of Entry Status

Questions