2016 & Beyond

2016 Q2 Launching Point Strategies for 2016 & Beyond

Community is at the heart of everything we do at ways that CVG is showcasing the region to millions CVG, whether it’s helping to support jobs and grow of travelers. the economy, or showcasing the many things that make the region great. Growing and strengthening our Because together with our community partners we own business is paramount. are passionate about making Greater Cincinnati and Northern Kentucky a world-class place to live, to work The 2nd quarter of 2016 has seen continued and to visit. progress, evident in the new service announcements from Frontier, Allegiant and OneJet, along with continued success in keeping airfares low. A new Use and Lease Agreement with our airline partners has prompted both Moody’s and Fitch to upgrade CVG’s bond rating, reflecting the airport’s strong J. Michael Schlotman | Board Chairman financial position. Executive VP and CFO, The Kroger Co. Just as a vibrant airport makes for a stronger region, CVG’s success, in turn, is dependent on support from the community. As the front door to the Tri-State, CVG is proud to highlight the region’s unique strengths.

The new Graeter’s storefront in Concourse A, and Candace McGraw | CEO several exhibits from Cincinnati Museum Center, Cincinnati/Northern including Neil Armstrong’s spacesuit, are the latest Kentucky International Airport

CVGairport.com | 2016 Q2 Report 2016 & Beyond THE AIRPORT OF CHOICE TO WORK FOR, FLY FROM AND DO BUSINESS WITH

Take Flight Grow Business More Air Service Growth Maintaining a Strong CVG has continued to see positive Financial Position air service trends as local passenger traffic saw sustained growth in the Moody’s Investors Service and 2nd quarter. Low fares Fitch Ratings have taken notice continued to drive of CVG’s strong financial profile much of the by upgrading our bond ratings. demand. Among the positive findings: a more diverse carrier base, large- OneJet is scale cargo services and minimal starting debt. The ratings help us to lower Local passenger the cost of building CVG’s future. traffic saw sustained weekday flights to growth in the 2nd Pittsburgh, With one 50-acre development for quarter. an Wayfair now complete, four important additional projects will business soon be underway market that provide extra that was revenue for the not otherwise airport while being served boosting jobs Moody’s and Fitch within the nonstop. Frontier is adding three have taken notice of new destinations for the fall community. and winter season, including Projects CVG’s strong Tampa, Ft. Lauderdale and include two financial profile. Cancun, plus a 2nd daily flight commercial to Denver through September. warehouses Allegiant is adding service to (VanTrust New York / Newark starting Nov. Real Estate 16 and has extended Destin, Fla., and Dermody), a service through the holidays. multi-tenant cargo building (Aeroterm) and an additional facility for the Bosch campus (Paul Hemmer Co.).

a World War II-era Aeronca airplane, vintage cars and the spacesuit Propel Community of Neil Armstrong (a former CVG Fostering Relationships board member). Keep an eye to Strengthen out for other exhibits to pop up throughout 2016 and 2017. Our Region CVG is partnering CVG and the City of Cincinnati with one of the collaborated to relocate nine historic region’s greatest murals from the former Terminals 1 CVG is partnering with & 2 to the Duke Energy Convention Cincinnati Museum assets, Cincinnati Museum Center, Center. The move makes way Center to showcase to showcase for a new rental car facility that exhibits. exhibits while will provide greater convenience, the museum lower operating costs and reduced undergoes emissions from shuttles no longer restoration. Travelers having to transport customers are already enjoying to and from the Terminal.

CVGairport.com | 2016 Q2 Report Elevate Services Surprising and Delighting Travelers In May we introduced miniature therapy horses twice a month to reduce stress and put smiles on people’s faces. The horses, from Seven Oaks Farm, are a hit with travelers and have become celebrities of sorts, earning coverage from Good Morning America, NPR, BBC, Go Beyond MSN and the New York Post. Providing a Seamless A hometown favorite Passenger Experience now has a storefront Travelers will continue to see in your hometown many upgrades to the Terminal airport. Replacing Garage, ValuPark lot and the kiosk that Curbside Valet as we strive to Graeter’s success at opened in ensure outstanding service. CVG is an indicator 2013, Graeter’s The latest improvement will of the growth in has opened a entail consolidating the Valet new store in drop-off and pick-up on the passenger traffic. Concourse A, Terminal Baggage Claim level serving decadent — providing streamlined service pastries, candy and covered access at both and ice cream. ends of the passenger journey. The success of Graeter’s at CVG is a Parking plays a critical role reflection of passengers’ in CVG’s continued success demand for delicious treats, and because, more than any other an indicator of the growth in service, it generates revenue to local passenger traffic. help minimize the landing fees charged to airlines. The success of CVG’s parking operations have helped to Travelers will lower landing fees by 42% in the last continue to see 3 years, making upgrades to ensure CVG one of the outstanding service. most economical airports in the Local Passenger Growth region — all while parking rates have CVG has enjoyed 22 months of year- stayed competitive. over-year growth in local passenger traffic, including 14 consecutive months of double-digit growth.

CVGairport.com | 2016 Q2 Report 2016 & Beyond

THE CVG OF TOMORROW

TAKE FLIGHT ELEVATE SERVICES 9,000,000 PASSENGERS BY 2021 FUNCTIONALLY OBSOLETE TERMINAL FACILITIES DEMOLISHED AND STATE-OF- THE-ART CONSOLIDATED RENTAL CAR GROW BUSINESS FACILITY CONSTRUCTED BY 2021 350 ACRES OF AIRPORT LAND LEASED FOR DEVELOPMENT BY 2021 GO BEYOND AIRPORT SERVICE QUALITY RANKING PROPEL COMMUNITY SURPERIOR TO PEER AIRPORTS BY 2021 $5 BILLION ANNUAL ECONOMIC IMPACT BY 2021

CVGairport.com | 2016 Q2 Report