Brief to NavCanada Oil Patch Group November, 2011 Scott Clements, President & CEO FMAA

Going Forward Together

We 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

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 Directors

         

Peter Wallis

At Large – (ExDir Van Horne Institute) Interim Chair

Mario 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)

Board Committee Structure



Governance Committee (Standing)

 Peter Wallis – Chair  Cheryl Alexander  Ken Balkwill 

Finance and Audit Committee (Standing)

 Jeff Fitzner – Chair  Mildred Ralph  Allan Kallal 

Capital Project Committee (Special)

 Sheldon Shroeder – Chair  Bernd Wehmeyer  Mario Kulas

Governance Principles

        Act as a Governance Board Sole fiduciary responsibility to the Authority Operate within defined Board Mandate Committees do the detail work and considerations Board Meetings well planned and prepared with major issues brought through committee recommendations High expectations of Board Members (energy, participation, attendance, decorum, conflict of interest) Focus on assisting Management to achieve Business Plan Objectives Enjoy the honour and experience

Going Forward Together

Planning Cycle

Phase V: Ongoing Measurement Phase I: Preparation - Input Quarterly Phase IV: Communication December July Phase III: Approval November Aug-Oct Phase II: Planning

We are through Year One And almost done Year Two

Going Forward Together

Key Success Drivers

1.



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 Clements COO – Sally Warford CFO – Ter Hamer Legal 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’s Bankers – RBC Long Term Lenders – Alberta Capital Finance Authority Bond Ratings – Standard & Poors Civil Works Contractor – EConstruction ATB Contractor – Ledcor Construction

May 13, 2011

800000

2009

700000 600000

2008 2010 2011

500000

2007

400000

2006

300000 200000 Jan

2005 2004

Feb Mar Apr May June July Aug

Rolling 12 Months Passenger Count

Sep Oct Nov Dec

780 000

Rolling 12 Month Passenger Count - Emplanements and Deplanements

770 000 760 000 750 000 740 000 730 000 720 000 720 684 725 732 730 551 735 331 739 205

2011 Actual

746 465 743 634 750 973 755 788 759 509

2009 2011 Business Plan

710 000 700 000

2010

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

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

Going Forward Together

Growth Projection 2010

Actual Moderate (CAPP) Medium (AMC) 1,600,000 1,400,000 1,200,000 1,000,000 We assume the Medium Line = 2.5% Annual We assume the medium scenario in our Plan Low High High Medium Moderate Low 800,000 600,000 400,000 200,000 0 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 2021 2024 2027 2030

Going Forward Together

Whitehorse - 32 * Kamloops - 31 * Saint John - 30 * Fredricton - 29 * Deer Lake - 28 * Charlottetown - 27 * Comox - 26 * Yellowknife - 25 * Victoria Harbour - 24 * Grande Prairie - 23 Vancouver Harbour - 22 * Prince George - 21 * London - 20 * Abbotsford - 19 * Moncton - 18 * Hamilton - 17 * Thunder Bay - 16 * Fort McMurray - 15 0 Airports < 1 Million Passengers

The asterisks represent all airports with some form of Customs at the Airport. Of the top 32 Airports in Canada

only two do not have any Customs – Fort McMurray (15) and Grande Prairie (23) 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 2009 2008 2007

Air Service Developments



Working with Air Canada and Westjet

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

Working with Regional partners to improve services

 Grande Prairie, Red Deer, Fort Chipewyan, Lethbridge  Saskatoon, Regina, LaRonge  Kelowna, Cranbrook 

Building the case for international services

 Las Vegas, Mexico, Denver (United Airlines) 

Case for AIR CARGO

Going Forward Together

Terminal Improvements



Parking – 182 news stalls



Safety in the walking/parking area



Food and Beverage – Subway and Delaney’s



Counters – fully leased



Advertising/Information



Airport Team Visibility/Information



Cleanliness/Disease Mitigation



Security Area – Expanded hold room/customs



Offices – New Administration Building



Improvements to building utilities, appearance

Airport Development Plan

West Boundary Road East Boundary Road

Major Capital Project

The 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

Access Road New Parallel Taxiway 2250 powered parking stalls Current Terminal Taxi/Bus Waiting Area

Challenges and Issues

              World economic challenges/uncertainty Change in provincial leadership Organization Development - Board and Management Federal Taxation Issue Refinancing Opportunity Alberta Oilsands Inc (AOS) International Airport Status Air Cargo Opportunities Real Estate Opportunities Manage Fort Chip Airport Regional Air Transportation Study Provincial and Federal Funding Support The 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 $$$$$$$$$

HISTORICAL AND PROJECTED FINANCIAL DATA

Medium Case 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Total Operating Revenues OpEx Debt service, capital costs and OpEx 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.

Proposal for Alberta Transportation

 Help FMAA and RMWB with the Roads  West Boundary Road  East Boundary Road  Connections to Hwy 69  Connection to Airport Road  Some improvements to roads on airport  Requesting $15M in grants for the work above  Could be done in phases  Could be part of CRISP Phase One

Proposal for Alberta Infrastructure

 Help FMAA and RMWB with Sewage and Crown Land  Fund the Airport portion of the Trunk Sewage Line  Fund the Airport portion of the Water Lines  Fund the Acquisition of the Crown Land for Second Runway  Some 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 Government

 Join the GOA, RMWB to support the special case for funding FMAA and supporting its dramatic growth  Include FMAA as a designated Airport Authority under the Airport Transfer Miscellaneous Matters Act   Assist FMAA to achieve international status with the facilitation of full time CBSA services Fund the extension of the main runway to 9000 feet (as was done for Prince George)  Contribute to Civil Works required for the airport expansion  Requesting $25M for the items above

Nav Canada Issues

 Relocated Receiver Site  Relocated Weather Station  Construction Coordination  ILS Replacement – No back course?

 Space Reservation for long term in Airport Master Plan  Air Transportation Study for the Region  Team FlyfortMac

Questions