Advertising opportunity Kannur International Airport Limited Kannur gives new wings Agenda

Overview and Opportunity for Bidding Process 1 Advertising Business 2

Technical and Financial Eligibility Criteria 3 4 Evaluation

2 Kannur International Airport – the new gateway to Kerala

1. Kannur Airport, the fourth international airport in Kerala, was set up on a on Pax Traffic in Mn (Apr,19-Sept,19) Public Private Partnership (PPP) Model on a 2,300 acre land parcel

2. The airport recently achieved a major milestone of handling over 1.5 Kannur Million passengers in 12 months, an unprecedent growth for a International greenfield airport, compared to other airports in Kerala 0.8 4 Airport Limited 3. Initial passenger forecasts suggest that Kannur International Airport 3 (Kannur Airport) has the potential to realize a passenger throughput of 5 1.7 Million in 5 years and 10 Million in 10 years

4. The ratio of Passengers to Meeters & Greeters stands at 1:5* leading to 2 high eyeball hits for advertising 5.1 1 Trivandrum 5. Currently, four airlines - Indigo, Go Air, Air India Express and Air India operate from Kannur Airport: 2 Cochin

2.0 1 3 Kozhikode Sr. No. Air Traffic Movements (ATMs) # of ATMs

4 Kannur 1. Domestic 150 2. International 112 Total 262

3 *Estimates from preliminary primary interactions A business opportunity driven by growing demand Kannur airport is estimated to serve 7.5 million passengers by 2030

Passenger Forecast in Millions 8.00 7.00 6.00 5.00 4.00 International 3.00 Domestic 2.00 1.00 Total - 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 International 0.85 1.06 1.27 1.48 1.68 1.89 2.10 2.31 2.52 2.73 2.94 Domestic 1.09 1.44 1.79 2.14 2.49 2.84 3.19 3.54 3.89 4.24 4.59 Total 1.94 2.50 3.06 3.61 4.17 4.73 5.29 5.85 6.41 6.97 7.53

Assumptions supporting Kannur’s growth story

Indian carriers Increase in bilateral India’s double digit deploying additional agreements aviation growth story capacity in Kannur

These forecasts are constrained estimates. Port of Call status by 2021, could help Kannur Airport realize a passenger throughput of 10 million by 2030. These estimates are indicative, the bidders have to do their own diligence to determine their business case. 4 Supported by capacity augmentation by airlines

Kannur Airport is expected to have 162 flights per day by 2030* 2020 609 ATM Forecasts

3,942

59,068 2030 11,396

54,653 vs 50,238

45,822 2020 2020 41,406 37,195 Turboprop Narrowbody Widebody 32,947 28,745 2030 24,483 20,456 5,243 15,947 8,318

45,507

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 AIRCRAFT WISE ATM SPLIT SPLIT ATM WISE AIRCRAFT Domestic International Turboprop Narrowbody Widebody *Constrained forecast 5 Kannur International Airport embarked its journey with a set of aspirations…

Gateway Airport Land Value Tourism An Tech enabled airport to the Malabar Optimizer enabler Aerotropolis

A multi-modal center that will Increase in land value owing to A catalyst for tourism growth that A smart and codependent Airport which is technologically reposition Kannur as the gateway interventions by right strategic enhances the tourism potential ecosystem that promotes mature in order to enhance value for passengers and ‘Emporium of stakeholders to generate of ‘Gods own country’ economic activities across for all stakeholders Spice trade’ for the Indian sub- demand and develop the airport sectors in close sync with the continent as a commercial hub growth of airport

Catalyst to unlock Malabar’s socio-economic potential

Becoming the tourism axis for Malabar, Waynad, South , Coorg

Access to 1,800 acres of land for development, leading to more advertising opportunities

6 Supported by strong business and growth levers...

Key Business Drivers

Large parcel of Land Developing economic landscape 1800 acres of land area available within the catchment area for utilization for: Malls, schools and business • Integrated Aerotropolis complexes coming up in the area • Airport development

Kannur International Airport Tourism Emigrant traffic • Beaches, backwaters, • NRK from Northern Kerala – Primary catchment ayurveda centers, Kerala Middle East, Europe and SEA folklore • Almost 50% of Kerala Secondary catchment • Alternate gateway to Coorg, emigrants are from districts Mysore and Mangalore such as Kasargod, Kannur, Primary Catchment Secondary Catchment • Wellness resorts/centres and Kozhikode, Wayanad and • Dakshin Kannada (Mangalore Malappuram Kannur, Wayanad and Hajj traffic – 165 Kms) other parts of North Kerala • Coorg (70 Kms) , Mysore (128 Kms) • Malappuram (134 Kms) and Kozhikide (92 Kms) 7 Aided by NRKs – a key target segment…

Kannur District Indicator Value Area (sq km) 2,966 Population (2011) 2.523 Million Age group distribution (2011) 0-14: 23%, 15-59: 64%, 60+: 13% Male: 97.54% Literacy Rate (2011) Female: 93.57% GSVA (2017-18, constant prices), INR 316,054 million Per capita GSVA (2017-18, constant prices), INR 121,559 Number of Non-resident Keralites (NRKs) 3.44 lakh (3rd highest among districts in Kerala) UAE – 39.1%, Saudi Arabia – 23%, – 8.7% Top 5 destination countries for emigrants from Kerala Oman – 8.6%, Kuwait – 6% Amount of NRI bank deposits in Kerala (2018), INR 169,944 crore Growth rate of NRI deposits (2013-18) 20.75%

A significant number of passengers traveling through Kannur Airport comprise of non-resident Keralites (NRKs) - emigrants settled predominantly in the Gulf countries

Remittances sent by these NRKs has played a significant role in the development of Kerala in general and Kannur in particular

Airport advertising targeting the NRKs could be highly effective in Kannur Airport, given the target segment eyeball hits 8 Source: Economic Review 2018, Kerala State Planning Board Bidding Process

• The Bidder may be a single entity or a group of entities/existing joint venture, coming together to implement the Project

• Term – 7 years

• Document Fee – An amount of INR 100,000 (One lakh rupees only)

• Bid Security - An amount of INR 1,000,000 (Ten lakh rupees only)

S No Event description Date 1. Reconnaissance Visits by Prospective Bidders* On or before 27 February 2020:1700 hrs 2. Last date for receiving queries 26 February 2020; 1700 hrs 3. Pre-Bid Conference 28 February 2020; 1130 hrs 4. Kannur Airport response to queries latest by 4 March 2020 5. Bid Due Date / Bid Submission Date 13 March 2020; 1400 hrs 6. Opening of Qualification Bids 13 March 2020; 1600 hrs 7. Evaluation of Qualification Bids 3 days from Bid Due Date Financial Proposal Opening for Qualified Bidders & 8. 6 days from Bid Due Date Announcement of Selected Bidder 9. Issue of Letter of Award (LOA) Within 7 days of Financial Bid Opening 10. Signing of Advertising Agreement Within 30 days of Letter of Award 9 Bidding Process

• Kannur Airport has provided for a single-stage process for selection of bidder.

Bids from bidders Bidding

Eligibility Qualification Bid Criteria ✔ Qualification Bid

Authority has provided: • Terms of Bidding Financial Bid • Eligibility & Evaluation Criteria and Financial Bid Financial Bid • Scope of Work Evaluation

Award of project

10 Eligibility Criteria

Technical Eligibility

. The Bidder (in case of consortium, the Lead Member) must have minimum 4 (four) years of experience in the last ten financial years (FY 08-09 to FY 18-19) as an Advertising Licensee in at least 2 (two) airports in India or abroad, of which at least 1 (one) airport must be handling more than 2 million passengers per annum during each year of the Agreement.

Financial Eligibility

. The Bidder, along with its group subsidiaries, must have achieved average annual turnover of at least INR 20,00,00,000/- (Rupees Twenty Crore) in past three (3) financial years (preceding FY 2019-2020) (“Financial Capacity”).

11 Evaluation

• The Bid Parameter will be the total Minimum Guaranteed Fee payable by the Bidder over the duration of the Term. • The Minimum Guaranteed Fee for each year will be calculated based on the Revenue Share Percentage as well as the Projected Gross Revenue quoted by the Bidder in the Financial Bid.

Minimum Projected Gross Revenue Share Guaranteed Fee Revenue Percentage

• A sample calculation is shown below.

No Year 1 2 3 4 5 6 7 a) Projected Gross Revenue – 100 200 300 400 500 600 700 quoted by bidder b) Revenue Share Percentage – 70% 70% 70% 70% 70% 70% 70% quoted by bidder c) Minimum Guaranteed Fee payable - 70 140 210 280 350 420 490 a) × b) • The total Minimum Guaranteed Fee for the duration of the Term comes out to be 1,960. This calculation will be done for all Bidders and the one with the highest value of Minimum Guaranteed Fee shall be the Selected Bidder

12 Expectations from the Advertising Licensee

1. Digital spaces and use of technology – The Advertising Licensee is expected to leverage the latest technology for development of advertising spaces at Kannur Airport. This would include, inter alia, development of state-of-the-art digital advertising spaces and using innovative technology for advertising.

2. Designs and materials to match with the aesthetics of the airport – The Advertising Licensee shall develop the advertising infrastructure in such a manner that it blends smoothly with the overall aesthetics and general features of the airport. The quality and type of materials used for building the infrastructure should match with those used in the airport.

3. Locations – Work with Kannur Airport for development of advertising locations both inside the terminal building as well as other spots in the airport land.

4. Brands and Partnerships – Develop long-term partnerships with contemporary brands and advertisers to enhance the passenger experience at Kannur Airport.

13 Annexures

14 Potential Media Bucket at Kannur Airport

High Value Mid - Low Value Ambient Lit Billboard - Large Format Ambient Lit Billboard - Small Format Video Wall Pillar Branding Gantries - Access Roads Escalator Branding Unipoles - Access Roads Baggage Belt - Arrival Backlit box - Large Format Ceiling Dropdowns Fixed Digital Asset - Large Branding of FIDS & other information screen Aerobridge - Exterior & Interior Washroom Branding Landmark Installations Baggage Trolleys Product Displays Queue Managers Promotion / Activation Glass Facade - Small Size Glass Facade - Large Size Digital Standees Content Partner for Entertainment Screens Planters / Green Area Branding

15 Potential Advertising Locations – Departures (1/2)

16 Potential Advertising Locations – Departures (2/2)

17 Potential Advertising Locations – International SHA

18 Potential Advertising Locations – Arrivals (1/2)

19 Potential Advertising Locations – Arrivals (2/2)

20 Potential Advertising Locations – Baggage Handling Area

21 Potential Advertising Locations – Escalators near Arrival

22 Thank you!