Air New Zealand Limited · NZX:AIR
Air New Zealand — Shareholder Meeting (October 2005)
14 slides from Air New Zealand's shareholder meeting presentation, Oct 19, 2005
Slide 1: Air New Zealand 66th Annual Shareholders' Meeting
Slide 2: John Palmer, Chairman
John Palmer Chairman £2. ca AIR NEW ZEALAND
Slide 3: pen
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Slide 4: Total Cash and Gearing
Total Cash ($m) 1,020 765 595 01 02 03 04 070 Gearing (%)° Target Range 01 02 03 04 + 05 * Includes capitalised operating leases
Slide 5: > $90m in cost savings achieved
$245m > $90m in cost savings achieved > $100m targeted savings in 2006 $77m 04 05, 06 07 ~+Target
Slide 6: Cost chain: sales, aircraft technology, maintenance, landing charges
Sales & _ Newaircraft Engineering : Distribution technology Maintenance Chain | handling Landing charges
Slide 7: Cost of landing a B747
Cost of landing a B747 $5,016 $4,257 $3,889 $3,770 $3,322 Auckland Nagoya London Singapore Brisbane L.A.
Slide 8: Rapidly evolving industry
> Rapidly evolving industry > Airlines outsourcing to reduce costs > Significant changes required at ANZES — Could require downsizing
Slide 9: 2006 earnings guidance of $100m PBUT
> 2006 earnings guidance of $100m PBUT > Includes transition costs of $59m — B777/B747 induction costs $18m — Q300 induction costs $4m — Scheduling inefficiencies $11m — End of lease requirements $26m > Assumes fuel price persists and we are unable to increase fuel surcharges
Slide 10: Beyond 2006 most key elements in place
> Beyond 2006 most key elements in place: — Best product in our markets — Intensified focus on customer service — Continuous cost reductions > Shifting our focus to streamlining processes
Slide 11: Rob Fyfe, Chief Executive Officer
Rob Fyfe Chief Executive Officer 2. € AIR NEW ZEALAND
Slide 12: Increased Returns
Increased Returns A
Slide 13: New fleet induction costs and benefits
> New fleet induction costs from training and setup > Exit costs for departing aircraft > New aircraft technology provides benefits — $75m in benefits per annum from 2007
Slide 14: Consultations underway on outsourcing heavy maintenance
Consultations underway on outsourcing heavy maintenance for long-haul aircraft and engines Outcomes from Tasman consultative process under review New destinations announced Delivery of first Boeing 777 aircraft next week