CEO Presentation to Airport Consultative Committee Meeting March 7, 2017 Strategic Goals

Attract and Be a Leader in Maintain Air Environmental Service Protection

Operate in a Provide Financially Exceptional Responsible Airport Facilities Manner

Retain and Provide a Safe Attract Talented and Secure and Motivated Airport Employees

VICTORIA INTERNATIONAL AIRPORT Environmental Management Plan

VICTORIA INTERNATIONAL AIRPORT TenTen Creek

Reay Creek

VICTORIA INTERNATIONAL AIRPORT TenTen Creek

VICTORIA INTERNATIONAL AIRPORT Reay Creek Detention Pond

VICTORIA INTERNATIONAL AIRPORT New Glycol Remediation Facility

VICTORIA INTERNATIONAL AIRPORT Electric Vehicle Charging Stations

VICTORIA INTERNATIONAL AIRPORT Bike Assembly Shelter

VICTORIA INTERNATIONAL AIRPORT Operate in a Financially Responsible Manner

. Operating and Capital Budgets achieved and financial performance improving each year for 5 consecutive years

. Non-aviation revenue as a percentage (67%) of total revenue is the highest in the country

. Airline operating costs lowest quartile in Canada

. Debt fully retired as of January 3, 2017

VICTORIA INTERNATIONAL AIRPORT Financial Income Statement Revenue and Expenses

2016 2015 Variance ($millions) (unaudited) Actual from 2015 Revenue $34.5 $29.2 $5.3

Expenses excluding amortization 15.9 14.3 (1.6)

Net income before amortization 18.6 14.9 3.7

Amortization 7.1 6.5 (0.6)

Net Income $11.5 $8.4 $3.1

VICTORIA INTERNATIONAL AIRPORT Air Transport Research Society Top Efficient Airports

VICTORIA INTERNATIONAL AIRPORT Sidney Crossing

VICTORIA INTERNATIONAL AIRPORT VICTORIA INTERNATIONAL AIRPORT Provide a Safe and Secure Airport

VICTORIA INTERNATIONAL AIRPORT New Baggage System CATSA Funded

VICTORIA INTERNATIONAL AIRPORT Non-Passenger Vehicle Screening

VICTORIA INTERNATIONAL AIRPORT Live Emergency Exercise September 29, 2016

VICTORIA INTERNATIONAL AIRPORT Photo Credit: James Crowley Water Main Break April 13, 2016

VICTORIA INTERNATIONAL AIRPORT Attract and Retain Air Service

VICTORIA INTERNATIONAL AIRPORT VICTORIA INTERNATIONAL AIRPORT Annual Passenger Traffic

1,900,000

8.5% 1,800,000

3.7% 1,700,000 6.0%

1,600,000

3.4% 1,500,000

1,400,000

VICTORIA INTERNATIONAL AIRPORT 2016 Passenger Growth by Month

Record month

16.0% 14.1% 13.4% 14.0%

12.0% 10.7% 10.8% 10.1% 10.0% 8.7% 9.1% 8.0% 8.0% 5.9% 6.0% 4.5% 4.0% 2.0% 2.6% 2.0% 0.0%

VICTORIA INTERNATIONAL AIRPORT Pacific Coastal Airlines Non-stop service to Prince George and Kelowna

Photo credit: Pacific Coastal Airlines VICTORIA INTERNATIONAL AIRPORT Delta Air Lines New Non-stop Service to Seattle

Photo credit: Delta Air Lines

VICTORIA INTERNATIONAL AIRPORT New Leaf

Photo credit: New Leaf Travel / CBC News VICTORIA INTERNATIONAL AIRPORT Canada Jetlines

Photo Credit: Canada JetLlines VICTORIA INTERNATIONAL AIRPORT Air Canada Rouge 767-300 Service to Toronto

Photo credit: Air Canada Rouge

VICTORIA INTERNATIONAL AIRPORT Growth Scenarios

4,000

3,500

3,000

2,500 1% 2,000 3% 1,500 5%

1,000 Total E/D Passengers (Thousands) E/D Passengers Total 500

- 2016 2021 2026 2031

VICTORIA INTERNATIONAL AIRPORT Adapt

VICTORIA INTERNATIONAL AIRPORT Phase 1

VICTORIA INTERNATIONAL AIRPORT Phase 2

VICTORIA INTERNATIONAL AIRPORT Phase 3

VICTORIA INTERNATIONAL AIRPORT Phase 4

VICTORIA INTERNATIONAL AIRPORT Phase 5

VICTORIA INTERNATIONAL AIRPORT Phase 6

VICTORIA INTERNATIONAL AIRPORT Phase 7

VICTORIA INTERNATIONAL AIRPORT Phase 8

VICTORIA INTERNATIONAL AIRPORT Phase 9

VICTORIA INTERNATIONAL AIRPORT Phase 10

VICTORIA INTERNATIONAL AIRPORT Phase 11

VICTORIA INTERNATIONAL AIRPORT All Phases

VICTORIA INTERNATIONAL AIRPORT Average Capital additions ($ millions)

$20.0

$15.0

$10.0

$5.0

$- 2012 - 2016 2017 - 2021

VICTORIA INTERNATIONAL AIRPORT Expansion of Lower Hold Room

VICTORIA INTERNATIONAL AIRPORT Expanded Parking

VICTORIA INTERNATIONAL AIRPORT Long Term Plan

VICTORIA INTERNATIONAL AIRPORT Rehabilitate Airfield Pavements 2017 VICTORIA INTERNATIONAL AIRPORT Provide Exceptional Facilities and Customer Service

Best Regional Airport North America – ACI

• 2012 – First place • 2013 – Third place • 2014 – First place • 2015 – Third place • 2016 – Third place

CNN Travel - 10 most loved airports in the world

VICTORIA INTERNATIONAL AIRPORT Customer Information

• Security wait times • Handing back control • Community programs

VICTORIA INTERNATIONAL AIRPORT Tectoria Innovation Station

Photo credit: Times Colonist VICTORIA INTERNATIONAL AIRPORT Hospital Hill Commemorative Monument ‘Lost Airmen of the Empire’ by Illarian Gallant

VICTORIA INTERNATIONAL AIRPORT Airport Divestiture

VICTORIA INTERNATIONAL AIRPORT