Philoxenia 2017 – Asian tourism: Connectivity & Travel Facilitation Airport: Potential & Conditions for Development

George Vilos Executive Director of Commercial & Business Development

A Subsidiary of AG Fraport Regional Airports of Management Company S.A. The 14 Greek Regional Airports project has multi- dimensional impact..

Up-to-date operational Socio-economical impact Commercial attributes features

• The project includes an • Route development • High standard services, upfront payment of strategy will boost safety & security will be €1.234bn, an annual fixed passenger traffic ensured payment of €22,9mn and • Synergies and co-actions • Significant capacity an 1/3 of the profits with airlines and local upgrades both landside • Investment plans of stakeholders will fuel and airside €400 mn until 2020 at the markets’ developmental • Efficient Counter, Gate & 14 airports potential Stand allocation by airport • The project will promote • Improved retail model operation the cities and regions as meterialised in new, re- • Implementation of CUTE touristic destinations developed areas, will • Upgraded BHS & • Local communities, provide all involved Integrated HBS (Hold companies and service concessionaires with Baggage Screening) providers will be heavily great potential in terms of supported and benefited business development • Introduction of PRM meeting points • Upgraded traveling • New retail stores and experience from check-in F&B units are designed to • Upgraded signage to boarding add value into systems passengers and visitors • Installation of FIDS traveling experience

2 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A Fraport Greece (FG) Airports: Among the low-cost airports in Europe Competitive - per departing pax - cost compared to Spanish & Portuguese airports

Charges Benchmarking - B738 a/c International (Intra EU route) - 85% LF - Remote Stand (1h) 6.000 €

31,41 5.000 € 26,68

4.000 € 18,54 16,39 18,93 Group Average 3.000 € 15,47 17,65 15,08 14,35 14,06 13,02 13,02 2.000 €

1.000 €

0 € MAD BCN LIS PMI AGP ALC LPA TFS IBZ ACE VLC FUE SVQ BIO OPO FAO FRG GRO VGO REU

A/C related charges PAX Related charges Security & PRM

Source: Airports’ Published Tariffs

Thessaloniki Airport: Potential & Conditions for Development 3 Fraport Regional Airports of Greece Management Company S.A FG Traffic development: January–September 2017 vs 2016 International traffic demonstrates a very healthy growth (12,5%), being the main volume driver (77%) during the first 9 months of 2017.

13,3% Total 11% 5,9%

5,3% 5,2% 18,5% 12,0% 16,4% 19,3% 13,7%

18,6% 4,4% 14,7% 5,0% 12,2% Total Traffic Total

SKG RHO CHQ CFU KGS JTR ZTH JMK EFL PVK JSI SMI MJT KVA

Domestic 4,5% 2,4%

1,5% -0,8% 12,6% 26,6%

-4,9% 6,5% 32,4% 15,9% -11,7% -4,1% 5,2% -5,7% -13,5% Domestic SKG RHO CHQ CFU KGS JTR ZTH JMK EFL PVK JSI SMI MJT KVA

International 12,5% 6,6% 20,8% 6,3% 7,6% 19,8% 15,7% 11,3% 15,2% 13,4% 20,0% 5,4% 20,6% 48,8% 21,4%

International SKG RHO CHQ CFU KGS JTR ZTH JMK EFL PVK JSI SMI MJT KVA

4 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A The Unique Profile of Thessaloniki City: Major transportation hub of south-eastern Europe and top tourist destination

 Greece’s 2nd major economic, industrial and commercial centre  Growing City Break tourism over the past 5 years  1,1 million inhabitants - 3,5 million catchment area  One hour drive from the natural beauties and the 5* infrastructure of Halkidiki  Major gateway to Balkans: 104 km to Pieria Resorts, 110 km to Balkans’ borders  Growing port for cruises  Leading Conference City in Greece with modern infrastructure for Conventions & Conferences  Crossroad of civilizations, a place where the East and West meets, where great cultures and religions have been mixed  Renowned for its festivals, events, exciting cultural life and entertainment  Home to 36 museums, 3 of the top museums in Greece

5 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A SKG Traffic development - January – September 2017 vs 2016 International demonstrates a robust growth (20,8%), being the strongest volume driver (63%) during the first 9M of 2017

12.000.000 +591k additional pax 13,3%

10.000.000 5,034 +547k additional pax 20,8% 4,443 8.000.000 1,303 3,178 1,317 2,631 Traffic 6.000.000

+44k additional pax 4.000.000 2,4% 2.000.000 1,812 1,856

0 Domestic International Total

2016 2017

Source: HCAA 1/1-10/4 & FG Traffic Data Management 11/4-30/9 (Preliminary Data)

6 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A SKG Airport: The largest airport in Fraport Greece’s portfolio With great developmental potential in terms of new markets’ attraction..

Total Passenger Traffic 2015 – YTD September 2017

900.000 Target: Extending Shoulder Months & Winter Operations 800.000

700.000

600.000

500.000

400.000

300.000 SKG 2015: 5,396,626 200.000 SKG 2016: 5,735,581 (+6.3%) SKG YTD SEP’17: 5,033,886 (+13,3%) 100.000

0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

2015 2016 YTD SEP 2017

*Source: HCAA & FG Traffic Management

7 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A International Traffic Mix: The Top 20 countries accommodate 96% of the total SKG International traffic (Jan-Sept 2017 vs 2016)

Top 20 International Markets in SKG 1.200.000 24%

1.000.000

800.000

600.000

400.000 24,5% 17,6% 16,4%

3,5% 200.000 4,3% 15,3% 34,7% -3,4% 19,8% 62,6% 26,1% 26,2% 35% 13,2% 240,4% 293% 184% -0,5% -16,2% 0

Jan-Sep'16 Jan-Sep'17

Source: HCAA 1/1-10/4 & FG Traffic Data Management 11/4-30/9 (Preliminary Data)

8 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A The Top 20 Nationalities in terms of Overnight Stays in Thessaloniki January-August 2017 vs 2016

120.000

100.000 0,6%

80.000

10,8% 90,5% 60.000 31,5% 25,8%

16,6% 23,9% 1,2% 18,4% 40.000

66,6% 12,1% 0,2% 520,3%22,0% 20.000 61,6% 76,0% 32,2% 10,8%

0

Israel Spain Cyprus Turkey Germany Romania Italy Federation Mondenegro Bulgaria USA Syria Kingdom France Albania Iraq F.Y.R.O.M. Poland Sweden Australia

Russian United Serbia & Serbia

2016 2017

9 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A The Best Performing Non-Asian Nationalities In terms of Overnight Stays in Thessaloniki (January-August 2017 vs 2016)

120.000

100.000 0,6%

80.000

10,8% 60.000 90,5% 31,5% 25,8%

23,9% 16,6% 1,2% 40.000 18,4%

0,2% 12,1% 22,0% 20.000 61,6% 76,0% 32,2% 10,8% 3,3% 6,7% 30,2% 20,9% 12,8% 1,4% 20,2% 0

2016 2017

10 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A The Best Performing Asian Nationalities In terms of Overnight Stays in Thessaloniki (January-August 2017 vs 2016)

25.000

20.000 9,8% 520,3%

15.000

10.000

41,9% 2,9% 5.000 74,9% 71,7%

0 Iraq Georgia Japan Korea Syria China

2016 2017

11 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A Australasian Indirect Traffic – Last 12 months SKG accommodates 45,000 passengers despite the lack of direct services

Indirect Passengers (last 12 months) 18.000 Connecting 16.000 Airports 15,912 14.000 15,252 12.000 13,840 • • Doha 10.000 • Dubai 8.000 • Abu Dhabi • 6.000 • Larnaca 4.000 2.000 Number of Stops 0 Far East Central Asia/Southeast Australia Asia/ Asia Subcontinent • 1 stop 49% • 2 stops 47% • 3 stops 4% • Shanghai 26% • Bangkok 17% • Melbourne 58% • Hong Kong 20% • Delhi 11% • Sydney 22% • Guangzhou 13% • Singapore 10% • Other 20% • Beijing 10% • Almaty 9% • Other 31% • Other 47%

Source: MIDT data

12 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A Thessaloniki will continue its upward course as a top tourist destination also in 2018 SKG attracts new routes of major importance inS18. Indicatively…

Jet2: Birmingham, Glasgow, Newcastle & Stansted

Germania: Dresden, Erfurt, Muncher,& Nuremberg

SAS: Stockholm & Copenhagen (the routes will be upgrated to year-round as of W‘17-18) & to Oslo

Eurowings:

Wizz Air: Iasi (Romania)

Qatar Airways Thessaloniki to Doha (year-round as of end of March 2018)

Source: Airlines (developments are subject to slot availability & *In red are the currently non-served routes to/from the airport airlines’ final route development decisions)

13 Fraport Regional Airports of Greece Management Company S.A Seamless traveling experience with high quality standards will boost the developmental potential..

 Customer centric behavior & practice: a prerequisite towards the attainment of both aeronautical & non-aeronautical business objectives

 Route development strategy: targeted actions will fuel passenger traffic & attract additional traffic, focusing primarily on the shoulder and winter months operations

 Synergies: co-actions with local authorities/bodies will support the destinations’ promotion and development, focusing on the peculiarities of the targeted markets

 New retail stores and F&B units: designed to add value into passengers and visitors traveling experience, serving each market’s characteristics

14 Fraport Regional Airports of Greece Management Company S.A Thank You!

15 Thessaloniki Airport: Potential & Conditions for Development Fraport Regional Airports of Greece Management Company S.A