NATS overview NATS Unclassified What do we do? Slide 2 NATS Unclassified 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 2.1m flights in FY 2010/11 (87% of flights to/from UK 13% overflights also provides services worldwide » 24 hours a day, 365 days a year Slide 3 NATS Unclassified Our service lines Slide 4 NATS Unclassified Providing services worldwide United Kingdom United Kingdom Fit out of new Manchester Airport control tower New environmental metric and performance scheme to drive down carbon emissions and fuel costs Spain ferroNATS selected to provide ATS at ten airfields USA Japan Opening of NATS USA subsidiary 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 India Oman Airspace re-design for DGMAN Oman Slide 5 NATS Unclassified South Africa Procedure design for ATNS South Africa around 2010 World Cup Capacity enhancement study to analyse reducing congestion, enhancing productivity and increasing operational efficiency at Mumbai International Airport Terminal airspace design and ATC system surveillance trackers' performance projects underway » 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 Slide 6 NATS Unclassified NATS Airports represents our innovative ATC and airport optimisation services which we offer to UK and international airport customers UK Airports Heathrow has over 1,300 flights per day ABERDEEN GLASGOW EDINBURGH MANCHESTER 85/90 aircraft per hour during the operating day and the most intensively utilised airport in Europe BELFAST LUTON Gatwick is the busiest single runway airport in the world BIRMINGHAM BRISTOL STANSTED CARDIFF LONDON CITY FARNBOROUGH SOUTHAMPTON Slide 7 NATS Unclassified HEATHROW GATWICK 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 Slide 8 NATS Unclassified Two control centres - Swanwick & Prestwick SCOTTISH AREA CONTROL CENTRE SHANWICK AREA CONTROL CENTRE LONDON AREA CONTROL CENTRE Slide 9 NATS Unclassified Prestwick Responsible for 870,000 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 Slide 10 NATS Unclassified 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 Slide 11 NATS Unclassified London Area Control Operations Controls upper level en route traffic over London and South East England Handles around 5,500 flights per day, busiest Are Control Centre in Europe Slide 12 NATS Unclassified 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 Slide 13 NATS Unclassified 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. Slide 14 NATS Unclassified » 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 provides a range of innovative defence services. Slide 15 NATS Unclassified 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. Slide 16 NATS Unclassified 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 groundbreaking 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. Slide 17 NATS Unclassified 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: AIR TRAFFIC CONTROLLERS 1900 AIR TRAFFIC SERVICE ASSISTANTS 750 ENGINEERS 1000 ADMINISTRATION AND SUPPORT 900 Slide 18 NATS Unclassified How did we get here? Slide 19 NATS Unclassified NATS Unclassified PUBLIC-PRIVATE PARTNERSHIP FOR NATS IS PROPOSED TEN YEAR £1 BILLION INVESTMENT PROGRAMME LAUNCHED 1996 TRANSPORT ACT ENSHRINES THE PUBLIC PRIVATE PARTNERSHIP (PPP) NATS ESTABLISHED 1962 2000 2003 SWANWICK AREA CENTRE OPENS 2002 NATS WINS SPANISH TOWERS CONTRACT 2011 2003 FINANCIAL RESTRUCTURING OF NATS, NECESSITATED BY AVIATION INDUSTRY DOWNTURN AFTER SEPTEMBER 11 2001, IS COMPLETED. 1996 NATS IS REORGANISED INTO A COMPANY AND BECOMES A WHOLLY-OWNED SUBSIDIARY OF THE CAA. 2010 2001 1972 BECOMES PART OF UK Regulator CAA Slide 21 NATS Unclassified AIRLINE GROUP CHOSEN AS PREFERRED PARTNER; AIRLINE GROUP BUYS 46% OF SHARES, 5% DEVISED TO STAFF COMPLETION OF THE TWO-CENTRE STRATEGY WITH CONTROL CENTRES IN SWANWICK AND PRESTWICK Inside NATS Slide 22 NATS Unclassified Financial summary had an annual turnover of £777.3 million (FY 2010/11) made an annual profit of £106.1 million (FY 2010/11) Slide 23 NATS Unclassified Five years of performance Financial Year Ended 31 March Flights Handled 2005/6 2006/7 2007/8 2008/9 2,330,589 2,405,573 2,480,004 Average Delay in Seconds (Attributable to NATS) 2009/10 2010/11 2,371,624 2,172,025 2,116,000 22.2 22.6 26.8 19.3 4.3 4.3 Where NATS is providing the service 56 55 57 52 41 34 NATS attributable 17 17 18 17 6 6 0 1 2 0 0 0 Safety (Airprox) Risk-bearing (A or B) NATS Group Profit/(Loss) before Tax (£m) As stated under UKGAAP As stated under IFRS 80.3 94.4 66.7 135.51 78.3 106.1 598.5 577.3 538.1 480.3 519.7 528 NATS Group Net Debt (£m) As stated under UKGAAP As stated under IFRS (NB) 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. Slide 24 NATS Unclassified NATS structure and ownership Government (49%) CAA Airline Group (42%) NATS Unclassified Employees (5%) Licensed by Govt via CAA Operations Services NATS (En Route) plc NATS (Services) Ltd En route & Oceanic Slide 25 BAA (4%) NATS Executive Chief Executive Officer Human Resources Director Richard Deakin Gerry Skelton General Counsel & Company Secretary Communications Director Richard Churchill - Coleman Finance Director Nigel Fotherby Simon Warr Managing Director Operations Martin Rolfe Safety Director Managing Director Services David Harrison Paul Reid Slide 26 NATS Unclassified 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 Richard Churchill - Coleman Bob Bowden Finance Director Chief Information Officer Safety Director Head of Communications Operations Director (Swanwick) Engineering & Programmes Director Nigel Fotherby David Harrison Simon Hocquard Slide 27 NATS Unclassified Gavin Walker Deborah Seymour Mike Stoller Services Leadership Team Managing Director NATS Services Communications Director Paul Reid Simon Warr International Strategy Director Human Resources Director Alastair Muir Sarah Stacey Finance Director Head of Customer Affairs Guy Adams Andy Shand Engineering Director Safety Director Iain Harris Steve Williamson Business Development Director Hd of Global Consultancy Andy Head Fergus Cusden Operations Director (Airports) Defence Director Juliet Kennedy Ewan Kelbie Head of Information (Interim) Ben Kiff Slide 28 NATS Unclassified Visit www.nats.co.uk for more information NATS Unclassified