Air New Zealand Limited · NZX:AIR

Air New Zealand — Non-Deal Roadshow (May 2006)

23 slides from Air New Zealand's roadshow presentation, May 8, 2006

  1. Slide 1: US Investor Roadshow

  2. Slide 2: ell J

    ell J

  3. Slide 3: New Zealand is a wonderful destination for a travel business to market

    New Zealand is a wonderful | AURMEW ZEAL ANTD a destination for a travel business to market... PLAINES CHRISTCHURCH DIN EDIN INUIT NEW ZEALAND © AWISTRALLA OB TOURIST POREC: CB a BT CAGE 8-06) 5.4 lis 28% WELUMG TON: OUTBOUND NEWZEALAND = AUSTRALIA 08 TOUREST FORECAST 1S CARR (OCG) BM POPULATION Ain

  4. Slide 4: Tourism accounts for 19% of exports and is NZ's largest export earner

    AIR NEW ZALAND ES Tourism accounts for 19% of exports | and is NZ's largest export camer - TOURESM ACCOLINTS FOR G46 OF NZ'S GOP INTERNATIONAL TOURISM CONTRIBUTES $7 BILLION TO NZS ECONOMY ~ DOMESTIC TOURISM CONTRIBUTES 440 BILLION TO Nits ECONOMY ~ 1006 OF WS WORKFORCE 5 RELATED TO TOURIGM (1 JOB I

  5. Slide 5: New Zealand travel businesses are profitable, but with significant margin differentials

    AJR MEW. ZEAL ANID’ New Zealand travel bus inesses are profitable, but there are significant margin. differentials - | EBITOA MARGING BBA 000 Air NZ Travel Tourise Agents Operator

  6. Slide 6: The market value chain

    The market value chain TH & A WIDE VARIETY OF OF REM? BUSINE J ANTA ATOM PLEX ARRAY OF INFORMATION! | ADICE : DISTRIBLITION SERVICE PROVIDERS OO PETAL TRAVEL AGENTS SINGLE AMD MULTI-S LORENG FOODS "ENTERTAINMENT | OTHER SERMICES CAPACITY PROVIDERS NETHIORK AIRLINES EPEMOENT HARTER AML INES WHOLESALE

  7. Slide 7: Air NZ is increasing its focus on extracting value at different levels of the value chain

    AIR MEW ALND | Air NZ is increasing its focus on extracting value at different levels of the market value chain INFORMATION? : * FOODS ADNWICE : DISTRIBUTION LODGING | ENTERTAINMENT | OTHER SERMICES SERVICE PROVIDERS APLME TRAVEL CENTRES (2) : : : TOURISM : TRAVEL ; : : RE] } INSURANCE ARUME ONLINE

  8. Slide 8: Air NZ is building a world class customer value proposition

    | | : .. : i NEWSZE wwe | ‘Air NZis building, a world clas | customer Valued proposition a ee fy IMPORMATION?S . ADAADE — OTHER SERVICES TRAVEL GAPERIEMCE ~ LODIGINS POO0 ENTERTAINMENT SIMPLIFIED BOOMING: ANCILLARY REVENUE: UCTURE MILT WHO AIR MZ TRAVEL CENTRE “B LORG-AAUL DIRECT Bexe,

  9. Slide 9: Air NZ is building a world class customer value proposition (cont)

    AUR NEW! zeatann & Air NZis building a world class customer value proposition (cont) EN PORMEATRON?S DISTRIBLITION ADVICE LOD FOO” .ENTERTAINMENM? ~ ONBOARD SERVICE NEW AIRPOINTS DOLLAR LOYALTY PROGRAMME GR MEW SCHEME SPCANTS DOLLAR thin (LE CREPES MOST OF CUR REDEMPTINGARE SHORT)

  10. Slide 10: Air NZ is building a world class customer value proposition (cont)

    ‘Air NZis building a world class a customer value propasition (cont} INFORMATIONS DISTRIBUTION ADVICE LODGING FOOD ENTERTAINMENT OTHER SERVICES: LOVALTY PROGRAMME — LOUNGES LONG MAUL (COMPORT & ENTERTAINMENT)

  11. Slide 11: Air NZ is building a world class customer value proposition (cont)

    Ainnew eaten S| ; Air NZ is building a.world class customer value proposition (cont) LODGING UFQO0 | EMTERTAINMERT OTHER SERMICES INFORMATION? CESTRIBUTION ADMICE LOVALTY PROGRAMM LOUNGES TASMAN / PACIFIC COOMPOIRT, FREQUENCY & PRICE) i

  12. Slide 12: Air NZ is building a world class customer value proposition (cont)

    AIR NEW 2CALAND } Air NZis building a world class customer value proposition (cont) LOCKSS FOOD ERTERTAINMEMTT OTHER — SERVICES INFORMATION: DES TRIBUTEOM ADVICE LOYALTY PROGRAMM Lou 7 ‘ DOMESTIC IPRICE & FREGUERICY)

  13. Slide 13: Airlines have placed too much emphasis on the operations value chain

    Airlines have placed too much ey | emphasis on thé operations value chain - Aur NZ is shifting towards — anew travel business model — OPERATIONS VALUE CHAIN 2 AIRAPT _ _EASING . FUEL | AIRPORT a MAINTEMSHICE GROUND: ) COATERIME WGMURALSTUBE SUPPLY -DPENATIONS 1g HOMOLING 9 UTHER Si AMCILLAPY ELJSINE

  14. Slide 14: Air NZ operates related ancillary businesses

    AIRNEW zane Air NZ operates related Ancillary businesses AIRCRAFT LEASING — FUEL RMAMUPACTURE EUPPEY MAINTENANCE

  15. Slide 15: 2003 to 2006 short-haul growth; 2007 focused on long-haul growth

    2003 to 2006 mol short-haul AINNoWzEALANO Growth. 2007 will be focused on long-haul growth AIRCRAFT LEASING | FUEL BIRPORT MANUFACTURE SUPPLY OF ERATIONS MAINTENANCE - GROUND CATERING & HAMDLING OTHER SERVICES a, UIE Shor haul ASKs. ‘Long - haul ASKs Teta Group AOKS. 95 Growth 72008 CAGE 2007 Planne

  16. Slide 16: Higher jet fuel costs have a disproportionate impact on short and long haul operations

    AWRLMEW ZEALAND € ‘Higher jet fuel costs hike o A disproportionate inapact on the short and long haul operations SHORTHAUL COST BASE LON WG <ALL OST Bae. FYO4 FYOR PYG FUEL EPPECIENCY 18 A KEY DRIVER BEHIND THE NEW FLEET PURCHASE (BT? ?, B7e?, OCG, AdzO)

  17. Slide 17: High fuel costs - capacity rationalisation to/from NZ

    AUR ISEW zane | | High fuel Costs = | CAPAC Yationalisation to/from NZ peeTD ARE PA G00) | RUTROUSD FAK OG: A AARKET ME SEE SENIOR | AMIE SOR RES | BeMeHTY Rar SAE (1 1 L : Austiaia B8d $88 ce cei ABLADL (3) MMH and 73 10002 cupacity acit NE & OF: Taeman Code Shore unk ea aI UBRLHEG-LON IT) | Roler

  18. Slide 18: Cost savings partially offsetting higher fuel cost

    ’ Anew ceacann | Cost savings partially offsetting. = higher fuel cost | (OST SAVINGS P¥O4 ~ PYOS CHANNEL G DISTRIBUTION = 862M LAROUE S44 TASMAN REVIEW B55 iT BEAM LOMALTY So2M AIRLINE SERWICES aM AIRPORTS BibM OFHER SSM TOTAL COST SAVINGS $3210 CUMULATIVE COST SAVINGS OF $923M PER ANNUM

  19. Slide 19: Example: Cost savings - Tasman review

    oo ~ ; oo Ak NeW ZALanDe | Example «ee . Cost savings ~ Tasman review (50m) AOR ME VE EDOM MARRCW-BIODY CASH COMPARISON Air MZ ASQO GPs cat, diflerential TOTAL OVERHEAD IN-FLIGHT COSTS y SROUND HANDLING Freedom Ago)

  20. Slide 20: Example: Cost savings - Tasman code share

    Example Cost Savings -— Tasman Code share RGN FOR CODE SHARE FILED JSP, AIR NE CATES | BY6? AND 1 AGU EXAMPLE: Wi SYD SCHEDULE Code Shars Schad BooG - 0000 - GAG - 0860 - G800 - OO - 1100 - 1200 - 180) - 1400 - 1550 - 1600 - Current Sthedule VS - 1800

  21. Slide 21: Example: Cost savings - labour productivity

    Exanple AIR NEW ZEALAND Cost Savings — labour productivity ed, [ BRORERCIRNAY ne reneneRan ET i | REGIE ENTE Plots cess 1068 Figta Adiensdards | aan ese | Mew Fight Sarde Manager robecrested, Tasman | Review London crewbase and olher off-shorm Airport Series: | 1200 Engrearkig ee | malrisiance outso

  22. Slide 22: Strong financial base allows for repositioning of business

    AIR NEW. zea Strong Financial base allows for _ fepositioning of business CASH HELD GEARING (MCL. CAPITALISED OPERATING LEASES) MRED NZBMilliord) Boog BOOS Gone YOU Boos BOOR BOGS 2004 D008 omaar “OS AS AA OEE OOS “AS AT 30 DER O08

  23. Slide 23: ARnowzenn &

    ARnowzenn & AA nn

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