1. Change in UK Airports Paul Kehoe BHX - CEO 10 March 2016 BBGA

2. Birmingham Airport

3. Location, population and transport  10m within 60 minutes  2nd largest city in UK  Metro Pop c4 million  Centre of UK manufacturing  Tourism – Shakespeare, Warwick, Cotswolds, Wales  Rail – direct to London in 1h10m  Car – centre of UK motorway network

4. Changing dynamics - UK Pre 1986 Government managed and control National Ts and Cs Limited connectivity/domestic schedule/ international charter dominant Post 1986 Privatisation and sale and re-sale/more competition Rise of the LCC Changing nature of revenue sources Rise of the business manager Post 2009 Break up of BAA Increase in overseas ownership Regrouping of airports Competition, Low cost dominance, closure Post 2012 -15 The Airports Commission

5. Changing airport management dynamic - UK Past Operators Pilots Navigators Town Clerks Air Traffickers Engineers Fire Officers Businessmen/women

6. Airport utopia

7. Airport reality NOT RYANAIR

8. Service business We thought – “what if Disney ran airports...?” Put customer/consumer first – airline & pax Making the journey transparent Where’s my plane? gate? shops or bag?

9. Service delivery Intelligence Marketing – Airlines, Passengers Social Media Communications Press Events TV and radio advertising Print advertising Search engine optimisation – pay per click Sponsorship Service Performance

10. Current airport strategy  Shareholder asks  Marketing & customer service  Optimize revenue, margin and dividend  Deliver capex on time  Cultural change and business transformation  Innovation, operational excellence  Strategic Intent  Safe and secure operation  Get planes, get pax, extract value, control costs  Create economic opportunity  Good stewardship of business

11. £300m investment

12. New facilities and capabilities

13. Airport Policy Political Campaign – A Challenge to Aviation Orthodoxy

14. “ It’s the economy, stupid!” BHX worth £1.7bn and 40,000 jobs to UK economy Existing evidence shows that the Midlands has a competitive advantage within the UK economy for manufacturing exports. Businesses in the catchment area consider the lack of long-haul connectivity from the region to be restricting their growth SE Runway – 15 years away What are we doing next week?

15. Capacity

16. Connectivity

17. High Speed Rail

18. BIRMINGHAM AIRPORT

19. Thank you & Q and A