Manchester Airports Group Update Call April 2014 Introduction Nei - PowerPoint PPT Presentation

Manchester Airports Group Update Call April 2014

Introduction Nei Neil Thompson Thompson ACA, CTA ACA, CTA – Chief hief Financial Financial Offi Officer cer Joined MAG in 2005, being Commercial FD and then Corporate FD, prior to taking on the role of Chief Financial Officer in March 2011. Neil previously held senior finance roles at The MAN Group and ALSTOM, with responsibility across businesses in the UK, Europe, North America, Canada, India, Singapore and Australia. Prior to the power generation sector, Neil spent seven years in financial practice, specialising in Corporate Finance and M&A transactions, latterly with PricewaterhouseCoopers Ken O’Toole FCA – Chief Ken O’Toole FCA hief Commerci Commercial Offi Officer cer Ken was appointed as Chief Commercial Officer in January 2012. Prior to that he spent six years with Ryanair Holdings plc, joining initially as Head of Revenue Management and latterly as Director of New Route Development. A qualified Chartered Accountant, his previous experience includes Musgrave Group, a leading Irish and UK based retailer, and Credit Suisse First Boston 2

Second bond issuance part of MAG’s planned long-term financing strategy MAG h G has s esta tablish blished ed a a lo long-term f erm financin ing p programme f mme focused o sed on the c capital m tal markets rkets   Planned strategy to refinance the £900m term loan Stansted Inaugural MAGAIR £450m 2034 issued 12 months after the Acquisition Facility through the issuance of a series of bonds acquisition of Stansted   Steady state financing structure with core debt in long-term The issuance of the second bond brought forward based on capital markets strong reception to the debut bond and on MAG’s visibility of the  next 12 to 24 months of performance and growth Timing of bond issuance triggered by the delivery of integration  and growth drivers – these are ahead of plan Build a curve of maturities Manch Manchest ster Stanste Stansted 3

Strong BBB+ credit and robust financial metrics MAG G is a is a U UK a airport group se servin ing 42 m million llion p passen ssenger ers s per a annum A Truly N A y National Airport tional Airport 42m passengers 42m passe Group Group Long-term, S Lo -term, Suppo portive rtive £638m Reven £638m Revenue Shareholde eholders rs Diversified Mix Diversi Mix Of Of £234m EBITDA £234m EBITDA Revenues Reven 3.6x conser 3.6x conservat vative ve Diversi Diversified Mix Mix Of Of leverage leverag Route Routes >50m people in the >50m peo in the Diversi Diversified Mix Mix Of Of catchment area catchment area Airlines Airl es Well-i Wel -invest nvested 275 destinations 275 desti infrastructure with infrastructure with Predicta Predi tabl ble Costs Costs Strong BBB+ Strong BBB+ ratin ratings s Experienced Experi enced from Moody’s from Moody’s and Fitch and Fitch Management Team Management Team Source: MAG Annual report, MAG Pro MAG has availa MAG has available spa spare capaci capacity ty of 25m of 25m passe passeng ngers, inclu s, including 17m 17m at at Forma Consolidated Financial Stansted. With modest investment Stansted . With modest investment spare ca are capacity is city is 46m passengers. gers. Statements, Prospectus - for the year ended 31 March 2013 4

Continued strong performance and delivery of strategy MA MAG remai remains on s on trac track to k to deli deliver the comm the commercial al and and op operatio ional st l strategy d tegy described scribed t to in investo stors in s in February Passenger gr Passenger growth and owth and route devel ute developme pment Stanste Stansted inte integrat ation and n and termi terminal transfo transformati tion   Investing £40m in the redevelopment of Stansted’s terminal with MAG continues to grow passenger numbers – up 4.6% to 43.8m retailers contributing up to another £40m for the twelve months to February 2014:   Double retail airside space MAN: 20.8m (+5.4%)   Improve passenger flows STN: 18.0m (+3.0%)   100% footfall Passengers and market share now back on a positive trajectory at Stansted  25,000 sq. ft. walk through Duty Free store  Long-term commercial agreements secured with major airlines  Terminal transformation proceeding to plan:  Continued route development; fifty new routes for summer 2014  New security area opened on 22 December 2013  Walk through Duty Free store opening in July  Tenants for Food & Beverage and Specialist retail units  IT separation from Heathrow now completed – 5 months ahead of plan  New car parking products introduced and distribution channels opened  CAA decision to fully de-regulate Stansted, including cargo, provides cost and commercial yield upside and endorses MAG commercial approach 5

Indicative Terms Conservative Conservative financing package with financing package with comprehensive comprehensive creditor protections co creditor protections comm mmensurate surate with peer group issuers with peer group issuers   Financial and operating covenants Full fixed and floating security   Common funding platform with bank and bond creditors pari passu Ability to appoint an administrative receiver   Clean hedging position Liquidity support Terms Te Minimum Mini m Issuer Issuer Manchester Airport Group Funding plc £100,000 / £1,000 Denominat Denomi nations ons Full fixed and floating security over assets Borrower Borrowe Manchester Airport Group Finance Limited Sec Security in the security group Se Seri ries Secured EMTN Programme Issuance Issuance Siz Size Minimum benchmark Currency Currency GBP Listing Listing London Stock Exchange Maturi Maturity Profi Profile Bullet Coupon Type Coupon Type Fixed rate To refinance the Existing Indebtedness on Tenor Tenor [10-12] years Use of Use of Proc Proceeds ds the Initial Issue Date Expect Expected Issue Rating Issue Rating Baa1 / BBB+ (Moody’s / Fitch) Increme Incremental tal Debt Debt None expected 6

Q&A 7