NATS overview

What do we do?

is the UK’s leading provider of innovative air traffic services and solutions. is the UK’s leading air traffic management provider, maintaining the orderly, efficient and, above all, safe passage of aircraft through UK airspace and beyond Handled nearly 2.2m flights in FY 2011/12 (87% of flights to/from UK 13% overflights also provides services worldwide 24 hours a day, 365 days a year

Our service lines

Providing services worldwide United Kingdom New environmental metric and performance scheme to drive down carbon emissions and fuel costs United Kingdom Fit out of new Manchester Airport control tower Spain ferroNATS selected to provide ATS at ten airfields USA Opening of NATS USA subsidiary Japan Airport capacity modelling and analysis to help the design and development of Narita USA Linking of NATS Airport CDM platform to US Next Generation Testbed Hong Kong Airspace re-design and related services for Hong Kong Civil Aviation Authority Qatar Two year airspace design and implementation consultancy project at the New Doha International Airport Singapore Terminal airspace design and ATC system surveillance trackers' performance projects underway India Capacity enhancement study to analyse reducing congestion, enhancing productivity and increasing operational efficiency at Mumbai International Airport Oman Airspace re-design for DGMAN Oman South Africa Procedure design for ATNS South Africa around 2010 World Cup

NATS Airports represents our innovative ATC and airport optimisation services which we offer to UK and international airport customers Provides Airport ATS at 15 major commercial airports in UK, as well as Gibraltar, under competitive contract to the airport operator Delivers new solutions to capacity constrained airports to improve their operations Recently won a contract to provide air traffic control services at 10 Spanish airports

UK Airports Heathrow has over 1,300 flights per day EDINBURGH BELFAST GLASGOW ABERDEEN MANCHESTER LUTON STANSTED LONDON CITY GATWICK HEATHROW SOUTHAMPTON FARNBOROUGH CARDIFF BRISTOL BIRMINGHAM UK Airports Heathrow has over 1,300 flights per day 85/90 aircraft per hour during the operating day and the most intensively utilised airport in Europe Gatwick is the busiest single runway airport in the world

NATS Airspace represents our safe and efficient en route services The sole provider of en route air traffic services in UK airspace – economically regulated and operating under licence from the CAA Two control centres at Prestwick and Swanwick Provides Shanwick air traffic services for the eastern North Atlantic Provides all the supporting communications, navigation and surveillance infrastructure and facilities

Two control centres - Swanwick & Prestwick SCOTTISH AREA CONTROL CENTRE SHANWICK AREA CONTROL CENTRE LONDON AREA CONTROL CENTRE NATS Unclassified

Prestwick Responsible for 880,000 flights per year in the airspace over the north of the UK (Scotland, Northern Ireland, Northern England, the Midlands, North Wales and the North Sea), and 390,000 flights over the North Atlantic Ocean, the busiest ‘remote area’ operation in the world Handles approximately 41% of the UK’s air traffic

Handles on average 5,500 flights each and every day of the year Controls 200,000 square miles of airspace above England and Wales including the complex airspace of London Swanwick

London Area Control Operations Controls upper level en route traffic over London and South East England Handles around 5,500 flights per day, busiest Area Control Centre in Europe

London Terminal Control Operations Controls low level traffic around London and South East England Including aircraft making approaches and departures to and from the main London airports

NATS Consultancy is the initial point of contact for many of our new UK and international customers. It provides a window to the range of capability of services available. Our areas of expertise include airspace design, engineering, ATC operations and transition management, safety management, operational analysis, project management, wind farm mitigation and simulation, human factors and training.

NATS Defence is the main point of contact for our military customers NATS Defence is the main point of contact for our military customers. NATS provides a range of innovative defence services. NATS already has a well established relationship with the MoD in the UK, through the provision of joint and integrated civil and military air traffic control services under the Future Military Area Radar Services (FMARS) contract

NATS Engineering provides engineering services to airport operators, construction companies and ATM industry suppliers, mainly integrating new ATM infrastructure at airports. Recent examples of our work include the delivery into operation of new control towers at Heathrow, Farnborough, Edinburgh, Newcastle, Jersey and Isle of Man and the ground-breaking Virtual Control Tower (VCF) at Heathrow, the first fully certified virtual tower anywhere in the world.

NATS Information seeks to source and integrate traffic, meteorological and AIM data which can be offered to our customers to transform their performance. Increasingly our customers are looking to information as the key enabler for future efficiency, improved passenger experience and flight optimisation. Large development programmes in Europe (SESAR) and America (NextGen) have established a future concept of operations which is underpinned by the need for a common operational picture, shared between the ground and aircraft.

Our people currently has approximately 4550 employees: 1900 AIR TRAFFIC CONTROLLERS 750 AIR TRAFFIC SERVICE ASSISTANTS 1000 ENGINEERS 900 ADMINISTRATION AND SUPPORT

How did we get here? Slide 19

1996 PUBLIC-PRIVATE PARTNERSHIP FOR NATS IS PROPOSED 2003 TEN YEAR £1 BILLION INVESTMENT PROGRAMME LAUNCHED 1962 NATS ESTABLISHED 2000 TRANSPORT ACT ENSHRINES THE PPP 2008 SALE OF HEATHROW TOWER 2011 NATS WINS SPANISH TOWERS CONTRACT 1996 NATS IS REORGANISED INTO A COMPANY AND BECOMES A WHOLLY-OWNED SUBSIDIARY OF THE CAA, PUTTING IT AT ARM’S LENGTH DISTANCE FROM ITS REGULATOR 2001 AIRLINE GROUP CHOSEN AS PREFERRED PARTNER; AG BUYS 46% OF SHARES, 5% DEVISED TO STAFF 2003 FINANCIAL RESTRUCTURING OF NATS, NECESSITATED BY AVIATION INDUSTRY DOWNTURN AFTER SEPTEMBER 11 2001, IS COMPLETED, WITH FURTHER INVESTMENT FROM GOVERNMENT AND BAA PLC OF £65M EACH. BAA TAKES 4% SHAREHOLDING, REDUCING AG’S SHAREHOLDING TO 42%. £600M BOND ISSUE SUCCESSFULLY COMPLETED 2010 COMPLETION OF THE TWO-CENTRE STRATEGY WITH CONTROL CENTRES IN SWANWICK AND PRESTWICK 2012 NATS MANAGES PEAKS IN TRAFFIC THROUGHOUT THE LONDON OLYMPIC GAMES 1972 BECOMES PART OF THE CAA NATS Unclassified

London 2012 Olympic Games For the London Olympic Games NATS had to plan and prepare for: Half a million overseas spectators arriving into the UK; Flights carrying 70,000 overseas ‘Games Family’ members; Flights carrying 150 Heads of State; 700 extra commercial flights into London’s main airports; 10,000 business jet movements. While managing all that NATS also had to serve its customers and the flying public and: Maintain and maximise capacity of London’s core Terminal Manoeuvring Area Airports who would be operating at maximum capacity at times; Create extra capacity to satisfy demands on Instrument Flight Rules (IFR) airspace to continue to meet core demands without significant disruption; Manage a significant expected increase in IFR movements to London’s second and third tier airports; Satisfy national security requirements in terms of various threats.

London 2012 Olympic Games After years of preparation, NATS delivered a gold-medal level performance. Despite traffic peaks, there were only 593 minutes of delay attributable to NATS throughout the whole Olympics. This compares to last year’s figure for the same period of more than 13,000 minutes of delay - a 95% reduction. With no risk bearing losses of separation attributed to the Olympics and just two infringements of NATS temporary Controlled Airspace by general aviation aircraft. This was made possible through our close working relationships with the MOD, CAA, General Aviation Community, Airlines and Airport Operators.

Inside NATS Slide 23

£865 million £195 million Financial summary had an annual turnover of (FY 2011/12) £195 million made an annual profit of (FY 2011/12)

Five years of performance Financial Year Ended 31 March 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 Flights Handled 2,405,573 2,480,004 2,371,624 2,172,025 2,116,000 2,167,000 Average Delay in Seconds (Attributable to NATS) 22.6 26.8 19.3 4.3 7.3 Safety (Airprox) Where NATS is providing the service 55 57 52 41 34 29 NATS attributable 17 18 6 5 Risk-bearing (A or B) 1 2 NATS Group Profit/(Loss) before Tax (£m) As stated under UKGAAP As stated under IFRS 94.4 66.7 135.51 78.3 106.1 194.5 NATS Group Net Debt (£m) As stated under UKGAAP As stated under IFRS (NB) 577.3 538.1 480.3 519.7 528 509 1 – THIS INCLUDES THE SALE OF THE OLD HEATHROW TOWER NOTE: NATS TOOK ADVANTAGE OF THE EXEMPTION AVAILABLE UNDER IFRS1 AND HAS NOT RESTATED NET DEBT AS AT 31 MARCH 2005 TO TAKE ACCOUNT OF THE REQUIREMENTS OF ACCOUNTING STANDARDS APPLICABLE TO FINANCIAL INSTRUMENTS (IAS32 AND IAS39).  THESE STANDARDS WERE ADOPTED AS OF 1 APRIL 2005 AND NET DEBT FROM 31 MARCH 2006 REFLECTS THE REQUIREMENTS OF THESE STANDARDS.

NATS structure and ownership Government (49%) Airline Group (42%) BAA (4%) Employees (5%) CAA Licensed by Govt via CAA Operations NATS (En Route) plc Services NATS (Services) Ltd En route & Oceanic

NATS Executive Richard Deakin Gerry Skelton Simon Warr Chief Executive Officer Human Resources Director Richard Deakin Gerry Skelton General Counsel & Company Secretary Communications Director Simon Warr Richard Churchill - Coleman Finance Director Managing Director Operations Nigel Fotherby Martin Rolfe Safety Director Managing Director Services David Harrison Paul Reid

Operations Leadership Team Managing Director Operations Training & Simulation Director Martin Rolfe Garry Jackson International Strategy Director Operations Director (Prestwick) Alastair Muir Pauline Lamb General Counsel & Company Secretary Human Resources Director Richard Churchill - Coleman Gerry Skelton Finance Director Engineering & Programmes Director Nigel Fotherby Mike Stoller Safety Director Head of Employee Communications David Harrison Deborah Seymour Strategy and Deployment Director Simon Hocquard

Services Leadership Team Managing Director NATS Services Operations Director (Airports) Juliet Kennedy Paul Reid International Strategy Director Safety Director, Services Steve Williamson Alastair Muir Finance Director, Services Communications Director Simon Warr Guy Adams Engineering Director Head of Information Ben Kiff Iain Harris Business Development Director Head of Defence Ewan Kelbie Andy Head Head of Consultancy Fergus Cusden Assistant General Counsel Tony Payne General Manager Customer Affairs Andy Shand Human Resources Director Sarah Stacey

Visit www.nats.co.uk for more information