Agenda Developments in daa Dublin Airport 75 years & key gateway Dublin Airport = 4.4% GVA Irish economy Growing market to China of 65,000 pax “Real World” Economics of long haul scheduled services. What does a Chinese carrier need to operate to Dublin ?

1. Asia Matters
Ireland China Business Summit
8 July 2015
Radisson Blu Royal Hotel, Dublin
‘The Role of Twin Cities in
Driving Business Partnerships’

2. 8 July 2015
Radisson Blu Royal Hotel, Dublin
The Crucial Role of Airports and
Airlinks in Driving Economic Growth
Kevin Toland
Chief Executive, Dublin Airport Authority

3. Ireland-China Business Summit
The role of airports in
driving economic links
8th July 2015

4. Agenda
• Developments in daa
• Dublin Airport 75 years & key gateway
• Dublin Airport = 4.4% GVA Irish
economy
• Growing market to China of 65,000 pax
• “Real World” Economics of long haul
scheduled services. What does a
Chinese carrier need to operate to
Dublin ?

5. daa Overview

6. daaOverview
• Owner/operator Dublin & Cork airports
• Commercial mandate
• No State funding
• Pivotal strategic/economic position
• 23.9m passengers in 2014
• 90% of ROI air traffic, 71% island of Ireland
• Substantial overseas operations
• ARI retail - India, Middle East, Cyprus, N America
• Airport investments – Europe
• daa International

7. FinancialPerformance2014
• Turnover €564m -13%
• Operating costs €282m +13%
• EBITDA €182m +13%
• Profit after tax pre-exceptional €40m +€12m
• Profit after tax post exceptional €19m -€19m
• €600m net debt
• €3.3x EBITDA

8. QualityAtACompetitive Price
• Major investment in improved facilities
• Dublin Airport now ranked in top 5 in Europe for
customer service
• Dublin’s airport charge 25% lower than its peers
• Strategy to keep charges flat in medium term
• Cork Airport – named world’s best regional airport for
service in 2013
• No increase in airport charges in 10 years

9. StrongGrowthAtDublinAirport
• 21.7m passengers in 2014 + 8%
• Continental Europe 11m + 5%
• Britain 7.8m + 8%
• Transatlantic 2.1m +14%
• Middle East 0.6m +19%
• DUB-London 4.1m +4%
• 53 airlines; 179 routes
• 24 new services launched

11. DublinAirportPassengerTraffic–RecoveringFast
15.9m
17.1m
18.5m
21.2m
23.3m 23.5m
20.5m
18.4m 18.7m 19.1m
20.2m
21.7m
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Passengers(000’s)
Dublin Airport Historical Traffic
15% growth from Jan-Jun 2015 (+1.5m passengers) versus 2014

12. CorkAirport
• Key gateway to South of Ireland/Munster
• Start of the Wild Atlantic Way
• 50 routes, 2.1million passengers 2014
• Connections to LRH, CDG & AMS
• State’s second largest airport
• No increase in charges in 10 years
• 1.2 million people within 90-minute drive
• Challenging local marketplace
• World’s best regional airport for customer service
2013 – ACI study
• Short-listed for ACI Airport of the Year 2015

13. ConnectingIrelandtotheWorldfor75Years
• Four years passenger growth
2010-2014
• Airport reach extends across
whole island
• Almost 18 times the
population of Dublin used
the airport in 2014
• First flight - 19th January 1940
• 21.7m passengers in 2014
• 179 destinations, 53 airlines
• Dublin – London is busiest
International route in Europe
• 328 return flights per week
direct to North America
• US Pre Clearance

14. TheEconomicImportanceofDublinAirport
 Island nation
 Very high propensity to travel – 4 times EU
average
 International hub for aviation leasing
 One of world’s most open economies
 Ireland a leading location for FDI
• 6 of Top 10 on Forbes list of The World’s
Most Innovative Companies are herd
• 2nd largest exporter of MedTech products in
Europe
• Fastest-growing economy in the Euro zone

15. DublinAirport’sEconomic Impact
DIRECT
At airport and airport
related businesses
Jobs: 15,700
GDP: €1.3bn
INDIRECT
Supplying and
supporting businesses
Jobs: 9,600
GDP: €0.7bn
INDUCED
Employees spending
in the economy
Jobs: 12,000
GDP: €0.8bn
CATALYTIC
Air service facilitating:
tourism, trade,
investment, productivity
Jobs: 60,100
GDP: €4.2bn
TOTAL
Jobs: 97,400
GDP: €6.9bn

16. DublinAirport= AMajorEmployer Onsite
Total: 15,700 Direct Jobs

17. DublinAirportisIreland’sAirport
 Ireland has a population of 6.2m
 Dublin Airport is within a 3-hour
drive of 90% of island
population = 5.6m people
 82% of air passengers in the
Republic of Ireland in 2014 used
Dublin Airport

18. LongHaulRoutesfromDublinin1996–LimitedNetwork

19. LongHaul2015–SignificantExpansioninNorthAmerica

20. OurLong-haulExpansionPlans

21. Dublin’sUSP–UnrivalledCombinationofMarketOpportunities
168 flights per week
from US/Canada can
connect to 787
flights per week to
UK and 1016 flights
per week to Europe
Capability
for flights from China
and other parts of
Asia to access the
same UK and
European network

22. Dublin=14thBestConnectedEuroAirport

23. China Market potential

24. GrowingDemandfromIrelandtoChina
Source: Airport IS 2009 - 2014. Information based on indirect two-way traffic from Whole Island Airports.
23,836 20,638 19,827 20,920 22,625 20,658
15,301 18,115
13,927
18,992
20,237 24,270
8,785 8,568
10,483
12,940
16,324
19,898
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2009 2010 2011 2012 2013 2014
Passengers
Beijing, CN Shanghai, CN Rest China
2014 65,000 passengers
travelled between China and
Ireland

25. Ireland-BeijingTrafficFlows 2009–2014*
Dublinaccountsfor85%ofdemandtoBeijing
20
18 17 18
20
18
4
3 3
3
3
3
0
5
10
15
20
25
30
2009 2010 2011 2012 2013 2014
Passengers(,000)
Dublin Rest Ireland
Source: IATA Airport IS 2009-2014, * Ireland includes Northern Ireland

26. Airline Economics

27. Whatdoairlineslookforinanewroute?
Direct services to China have to commercially sustainable – Chinese
airlines are financially well structured and astute. There are no charity
cases…..

28. • Typical Total Operating Costs =
c€200,000 per round trip between
Dublin and Beijing
• c€41.6m annual costs for a 4/week
operation
• Typical 250 seat A330 aircraft requires
revenues of €1600 per return trip to
simply cover production cost of each
seat
• Challenge for Ireland – show a carrier
where there is €45m of annual revenue
(passengers and cargo) to underpin a
business case
Fuel
46%
Airport
3%
Handling
4%
Maintenance
8%
Navigation
3%
Aircraft
16%
Crew + Trng
9%
Catering
6%
Sales
2%
Other
3%
Cost Breakdown
Fuel Airport Handling Maintenance
Navigation Aircraft Crew + Trng Catering
Sales Other
Typical Long Haul Scheduled Carrier Operating Economics

29. AreWeStartingtoLoseTheRace?
• Booming China-US market has seen significant direct service expansion in 2015,
including secondary cities such as Seattle and San Jose
• Competition in Europe for Chinese service is intense. Smaller cities such as
Budapest, Vienna and Minsk have seen service expansion this year, and
Birmingham has secured a programme of inbound charter flights from Beijing
• Competition is focussed, well-s structured and adequately funded

30. DirectServicestoChina–NextSteps?
StrongIrelandIncmessage,basedoneconomicsratherthansentiment,needstobe consistently
presentedtoChinesestakeholderstosupportapotentialnewroute
Strengthen Market Demand
•Business traffic – work with key
stakeholders in Ireland and
China to accurately identify key
market sectors and operating
companies
•Leisure Traffic – ongoing
sustained investment in “smart”
tourism marketing required in
core Chinese source markets.
Competition from other
countries is intense
•Freight traffic – need Irish
stakeholders to focus and
project what freight potential
could be with a direct flight eg
live seafood
Key Enablers
•Visas for leisure market – BIV is a
huge step forward but Chinese
market is now benchmarking
against 10 year multiple entry
visas now offered by USA
•Visa for investors – need to make
access to Ireland easy for
potential Chinese investors
Key Relationships
•Government to Government
relationships have never been
stronger. Three senior Chinese
delegations to Ireland in last
three years
•Continue to build airline
relationships. Both air China and
Hainan Airlines have sent senior
delegations to Dublin in the last
12 months
•Dublin Airport “Twin Sister”
relationship with Beijing Airport
important in ensuring Dublin
exposure at senior decision-
making levels in China

31. www.dublinairport.com
Thank you !