Going Forward Together

Scott Clements, President & CEO FMAA

Brief to NavCanada Oil Patch Group November, 2011

MissionWe are responsible stewards of our

airports, achieving superior performance in the conduct of safe,

secure, effective and efficient operations. Our airport businesses

contribute significantly to the economy of both the Region and the

Province.

Going Forward Together

Vision

We are Canada’s Premier Regional Airport, connecting the World to the People, Resources and Opportunities in the Wood Buffalo

Region

Going Forward Together

Board of DirectorsPeter Wallis - At Large – (ExDir Van Horne Institute) Interim ChairMario Kulas – Oil Sands Development Group – (Shell – Mgr Scotford Plant) 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 Public School Board)Roy Williams – RMWB – (Stantec)Bernd Wehmeyer - RMWB – (Suncor – Manager Firebag Aerodrome)Ken Balkwill – CUPE – (Retired CUPE Executive/LAPP Board) Cheryl Alexander - At Large – (Consultant/Businesslady)

Going Forward Together

Board Committee StructureGovernance Committee (Standing)

Peter Wallis – Chair Cheryl AlexanderKen Balkwill

Finance and Audit Committee (Standing)Jeff Fitzner – ChairMildred RalphAllan Kallal

Capital Project Committee (Special)Sheldon Shroeder – ChairBernd WehmeyerMario Kulas

Governance PrinciplesAct as a Governance BoardSole fiduciary responsibility to the AuthorityOperate 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, conflict of interest)Focus on assisting Management to achieve Business

Plan ObjectivesEnjoy the honour and experience

Planning Cycle Phase I:Preparation - Input

Phase II:Planning

Phase III:Approval

Phase IV:Communication

Phase V:Ongoing Measurement

JulyJuly

Aug-OctAug-Oct

NovemberNovember

DecemberDecember

QuarterlyQuarterly

We are through Year One And almost done Year Two

Going Forward Together

Key Success Drivers1. To Optimize the Customer Experience

Strategic Goals ---> Annual Corporate Objectives

2. To Lead a High Performing Airport Team Strategic Goals ---> Annual Corporate Objectives

3. To Achieve Sustainable and Profitable Growth Strategic Goals ---> Annual Corporate Objectives

4. To Foster Effective Stakeholder Relationships Strategic Goals ---> Annual Corporate Objectives

 

Going Forward Together

Management Team

President & CEO – Scott ClementsCOO – Sally WarfordCFO – Ter HamerLegal Counsel/Corporate Secretary – Ron Odynski (Ogilvie LLP)Business Development – Jim Meyer (LeighFisher)Project Management – Bruce Ferguson (Stantec)Engineering – Brad Pryde (PSMI)Architects – Steve McFarlane (MGB)Real Estate Management – Ken Williamson (Colliers)Auditors – Deloitte’sBankers – RBCLong Term Lenders – Alberta Capital Finance AuthorityBond Ratings – Standard & PoorsCivil Works Contractor – EConstructionATB Contractor – Ledcor Construction

Going Forward Together

FMAA Annual Report 2010May 13, 2011

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec200000

300000

400000

500000

600000

700000

800000

2008

2007

2009

2010

2006

2005

2004

Rolling 12 Months Passenger Count

2011

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec690,000

700,000

710,000

720,000

730,000

740,000

750,000

760,000

770,000

720,684

725,732

730,551

735,331

739,205

743,634

746,465

750,973

755,788

759,509

2011 Actual

2009

2010

2011 Business Plan

Rolling 12 Month Passenger Count - Emplanements and Deplanements

2011 First Eight Months over 2010 % Change in E/D Passengers

% o

f C

hang

e

-2.0%

-1.3%

1.0% 1.1% 1.1%

1.8%2.2% 2.2% 2.3%

2.9%

5.4%

6.3%

7.8%

-0.7%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Growth Projection 2010

We assume the medium scenario in our Plan

Going Forward Together

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030

Actual Moderate (CAPP) Medium (AMC) Low High

Low

High

Moderate

MediumWe assume the Medium Line = 2.5% Annual

Fort McMurray - 15

Thunder Bay - 16 *

Hamilton - 17 *

Moncton - 18 *

Abbotsford - 19 *

London - 20 *

Prince George - 21 *

Vancouver Harbour - 22 *

Grande Prairie - 23

Victoria Harbour - 24 *

Yellowknife - 25 *

Comox - 26 *

Charlottetown - 27 *

Deer Lake - 28 *

Fredricton - 29 *

Saint John - 30 *

Kamloops - 31 *

Whitehorse - 32 *

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

Airports < 1 Million Passengers

200920082007

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)and Grande Prairie (23)

Going Forward Together

Air Service DevelopmentsWorking with Air Canada and Westjet

Westjet Toronto Daily Service (Seasonal in 2011)Air Canada upgrading Toronto ServiceConsiderations for Vancouver and International

Working with Regional partners to improve servicesGrande Prairie, Red Deer, Fort Chipewyan,

LethbridgeSaskatoon, Regina, LaRongeKelowna, Cranbrook

Building the case for international servicesLas Vegas, Mexico, Denver (United Airlines)

Case for AIR CARGO

Terminal ImprovementsParking – 182 news stallsSafety in the walking/parking areaFood and Beverage – Subway and Delaney’sCounters – fully leasedAdvertising/InformationAirport Team Visibility/InformationCleanliness/Disease MitigationSecurity Area – Expanded hold room/customsOffices – New Administration BuildingImprovements to building utilities, appearance

Going Forward Together

Airport Development Plan

East Boundary Road

West Boundary Road

Major Capital ProjectThe right plan for the future

•Plan approved and in implementation•Funding in place from ACFA albeit large debt•Two Major Contracts awarded under budget•Minimal taxation•Public funding grant of $25M thus far•Renewed Real Estate Policy/Opportunities•International Airport Potential

Current Terminal

2250 powered parking stalls

Access Road

Planned Hotel

Taxi/Bus Waiting Area

Aircraft Ramp AreaNew

Terminal

New Parallel Taxiway

Challenges and IssuesWorld economic challenges/uncertaintyChange in provincial leadershipOrganization Development - Board and ManagementFederal Taxation IssueRefinancing OpportunityAlberta Oilsands Inc (AOS)International Airport StatusAir Cargo OpportunitiesReal Estate OpportunitiesManage Fort Chip AirportRegional Air Transportation StudyProvincial and Federal Funding SupportThe Airport Team (FlyFortMac)Union Negotiations in 2012

Summary – Things are going well Transition from Commission to Authority is complete Robust Strategic Plan in place YMM Passenger Traffic up – Leads the nation Significantly ahead of budget Strong Projections for Oil Sands Growth in Investment Project financing in place (ACFA) - $198M @ 4.718% over 30 years – BBB

Credit Rating (S&P) Both major contracts underway with full approved scope and overall under

budget – Contingencies and Escalation allocations in tact – Project ahead of schedule

Municipal taxation bylaw in place and very favourable Municipal Grant of $25M approved to assist in civil works Potential for material grant assistance from Province and Feds - CRISP New Real Estate policies now in place and being implemented Airlines onside - Good potential for international service in the near term

(United) Strong community support - Our Shared Bold Vision in tact and progressing

well

BUT............

Big Challenge on $$$$$$$$$

- 5,000

10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000 60,000 65,000 70,000 75,000 80,000

2006

2008

2010

2012

2014

2016

2018

2020

2022

2024

2026

2028

2030

Total Operating RevenuesOpExDebt service, capital costs and OpEx

HISTORICAL AND PROJECTED FINANCIAL DATAMedium Case

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

Dol

lars

(00

0's)

Proposal for Alberta Transportation

Help FMAA and RMWB with the Roads West Boundary RoadEast Boundary RoadConnections to Hwy 69Connection to Airport RoadSome improvements to roads on airport

Requesting $15M in grants for the work above

Could be done in phasesCould be part of CRISP Phase One

Proposal for Alberta InfrastructureHelp FMAA and RMWB with Sewage and

Crown LandFund the Airport portion of the Trunk Sewage

LineFund the Airport portion of the Water LinesFund the Acquisition of the Crown Land for

Second RunwaySome infrastructure improvements on airport

Requesting $20M in grants for the items above

Could be done in phases Could be part of CRISP Phase One

Proposal for Federal GovernmentJoin the GOA, RMWB to support the special case for

funding FMAA and supporting its dramatic growthInclude FMAA as a designated Airport Authority under

the Airport Transfer Miscellaneous Matters ActAssist FMAA to achieve international status with the

facilitation of full time CBSA servicesFund the extension of the main runway to 9000 feet

(as was done for Prince George)Contribute to Civil Works required for the airport

expansionRequesting $25M for the items above

Nav Canada IssuesRelocated Receiver SiteRelocated Weather StationConstruction CoordinationILS Replacement – No back course?Space Reservation for long term in Airport

Master PlanAir Transportation Study for the RegionTeam FlyfortMac

Going Forward Together

Questions

Onwards and Upwards