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