GREENING FOR PROFIT

STEPHANIE BOLT

ADELAIDE AIRPORT LTD

SAFC CONFERENCE

23 SEPTEMBER 2015

ADELAIDE AIRPORT

7.7Million Total

annual passenger

900,000International passengers

6.2Million

domestic national

passengers

6International destinations

600,000Domestic regional

passengers

19Domestic

and regional destinations

ECONOMIC GROWTH

FY94

FY95

FY96

FY97

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6AAL PAXSA GSPAUS GDP

Sources:BITRE, AAL, Australian Bureau of Statistics, 5206.0 – Australian National Accounts: National Income, Expenditure and Product, November 2014

2.4x

1.7x

1.9x

AVIATION GROWTH

• GLOBALLY (2013-2014*)

Source: Airports Council International (*data based on % change YOY to July)

AFRICA ASIA PACIFIC EUROPE LATIN AMERICA CAR MIDDLE EAST NORTH AMERICA GLOBAL-4

-2

0

2

4

6

8

10

12

AVIATION GROWTH (% CHANGE YEAR ON YEAR 2014)

PASSENGERS CARGO MOVEMENTS

AVIATION GROWTH

• EXPANDING INDUSTRY ON BACK OF GROWING MIDDLE CLASS• AIRLINES TO NEED 34,000 NEW AIRCRAFT 2011-2031• AIRLINES + AIRPORTS = SYMBIOTIC RELATIONSHIP

Source: Boeing Current Market Outlook

AVIATION GROWTH

INDUSTRY LEADERSHIP

• COMMITTED TO CARBON NEUTRAL GROWTH FROM 2020, AND 50% REDUCTION BY 2050

• INCLUDES AIRPORTS

Source: IATA Aviation Carbon Model

INDUSTRY LEADERSHIP

Source: IATA Aviation Carbon Model

ADELAIDE AIRPORT VISION

AVIATION GROWTH + ECONOMIC GROWTH

Increased Capacity

and Efficiency

INDUSTRYLEADERSHIP

MISCONCEPTION:

GOING GREEN HAS TO BEEXPENSIVE OR DIFFICULT

GREEN APPROACH

TRUTH:

ENVIRONMENTAL WASTE ISTHE BEST PROXY FOR IDENTIFYINGAND ELIMINATING ECONOMIC WASTE

KEIVAN ZOKAEI, AUTHOR & LEAN OPERATIONS CONSULTANT

Low-Carbon Investments Produce Higher Returns. Seventy-nine percent of US companies in the S&P 500 that report to CDP earn a higher return on their carbon-reduction investments than on their overall corporate capital investments. Similarly, those companies with carbon reduction targets secured 9 percentage points higher overall ROI than their peers without targets.

GREEN APPROACH

TRUTH:

LOW CARBON INVESTMENTSPRODUCE HIGHER RETURNS

79% of US companies in the S&P 500 earn a higher return on their carbon-reduction investments than on their overall corporate capital investments. Similarly, those companies with carbon reduction targets secured 9% higher overall ROI than their peers without targets

CDP & WWF, 3% PROJECT REPORT

GREEN APPROACH

• SMART DESIGN• BUILDINGS• INTERIORS• UTILITIES

• BUILDING ENVIRONMENT CONTROLS• AIRFIELD INFRASTRUCTURE UPGRADES• ALTERNATIVE WATER NETWORK• TECHNOLOGY INNOVATIONS

GREEN APPROACH

GREEN APPROACH

INNOVATION