Investing In OAKCapital Development Opportunities

Oakland International Airport | March 13, 2013

OAK is un-constrained, it is the closest airport to most Bay Area residents and businesses

US 3rd Largest Air Service MarketUS 5th Largest Population Center5 new airlines and 23 successful new destinations since 2009Over 10million passengers in 20124th busiest airport in California40 nonstop destinations

OAK OverviewAirline passenger terminals– Over 10 million annual passengers– Two terminals: 29 aircraft gates– 6,100 on-Airport parking spaces

Air cargo sort facilities– FedEx– United Parcel Service

General aviationfacilities

OAK Passenger Trends

THE PORT OF OAKLAND • POWERING JOBS • EMPOWERING COMMUNITIES 5

• 3 drivers behind 30%+ drop

• 10% up in 2012; projecting 2% in 2013

• About 75% from one carrier

• Two-prong growth strategy: Domestic niche and international

Powering Jobs and Economic Growth

OAK generates 14,667 jobs from on-Airport activities, 39,095 total including visitor generated jobs

OAK generates $3.9 billion in economic impact from on-Airport activities, $6.6 billion total including visitor generated impact

Who Are We Today?“The coolest new kid on the block is Oakland”

-The Huffington Post, January 2012

• The Bay Area’s Most Reliable Airport

• In The Heart of a Globally Leading Business Environment

• Emerging Business Venues and Significant Gateway to Tourism

• The Most Profitable US Airlines All Serve OAK

• Many Unserved and Underserved Key Markets

Air Freight OAK

• Introducing 777-200 for international service

• Commitment to OAK through 2056

• China

• Paris

New North Field Tenants

With 50 locations in the U.S., Canada and Western Europe, Landmark is

one of the nation's largest FBO networks, with a continued commitment to growth

OAK Costs To Remain Lowest in Bay Area

Actuals and estimates from each airport budget reports and forecasts.

Strategic Partnering

Formalize partnership with East Bay companiesEstablish common goals

Over $500 billion in annual revenue generated by companies based within 25 miles of OAK

Major East Bay companies include:– AT & T– Chevron– Oracle– Bayer Healthcare– Bio-Rad Laboratories

OAK is the Official Airport of Cal Athletics

University of California’s flagship institution, ranked 2nd in the world, is located in the East Bay at Berkeley

OAK customers:

– Students

– Faculty

– Researchers

– Alumni

– Visiting athletes and fans

45 Cal athletes won 17 medals in the 2012 London Olympics, 11 gold – placing Cal between Germany and France in the medal count.

More CEOs, Ambassadors, Nobel Laureates, Pulitzer Prize winners

Targeted Marketing for Parking Programs

– Free parking programs– New Operator– Re-branding

   

Parking Marketing Programs

Partnering in SustainabilityGREEN AIR TRAFFIC CONTROL TOWER:Going for LEED Gold

EARTH DAY 2012 RECYCLING: Nearly 20 tons of airfield material recycled by the airport and its airline tenants

ENERGY: Partnering with Lawrence Berkeley National Labs on Energy Innovation Initiative

Airport Capital Program

Over $90M in FY13 projects, $469M in 5-yr FY13-17

Over 75 projects in Aviation Program

Strategic focus on maintenance and compliance for existing assets with emphasis on revenue generating

PROJECTS UNDERWAY--BART OAK Airport Connector BART Sponsored

• 16% of OAK customers already use BART

– Greater percentage than SFO– Connector will increase this

even further• OAK: 7-minute headways

– SFO: 20 min.

PROJECT UNDERWAY—FedEx Facility ExpansionFedex Sponsored

125,000sf expansion$50M invested in capital and equipment

PROJECTS UNDERWAY-New Air Traffic Control TowerFAA SponsoredOpens in June 2013LEED Gold certifiedConsolidates all air traffic operations in one locationRamp control service—Proposal due April 11, 2013

PROJECTS UNDERWAY—T1CUP and Mechanical Building Mechanical Building

opens in Summer 2013M104 renovation complete in 2014

PROJECTS UNDERWAY—T1 Renovation and Retrofit

On-going projects since 2008M102 Major Infrastructure Bidding through Turner underway for $65M renovationConstruction late 2013 for 2+ yearsSeismic, HVAC, plumbing, electrical, lighting, special systems, roofing, signage, office renovationMore to come

Runway Safety Area Construction—2013-2015South Field—Construction starts April 2013North Field—Advertise 1st quarter 2014, contract (est): 33M

Airport Pavement Management SystemAdvertise: April/May 2013 Contract: $300+

Upgrade Bag Claim Signs and DisplaysAdvertise: On-calls-April/May 2013 Contract (est):$450k

Pumphouse 6Advertise: 2nd quarter 2013 Contract: $2.5M

Replace Automated Vehicle Identification (AVI) SystemAdvertise: 3rd quarter 2013 Contract est: $500k

Regional Passenger Survey—SFO/OAKRFP Issued by SFO: 3rd quarter 2013 Est Contract:$200M

Passenger Boarding BridgesAdvertise: 3rd quarter 2013 Contract (est): $6M

Replace 5 PBBsat Terminal 1 gates

Airport Perimeter Dike ImprovementsAdvertise: 4th quarter 2013 Contract (est): $49M

CCTV Improvements/HeadendAdvertise: 1st quarter 2014 Contract (est): $800k

Other 2nd and 3rd Quarter 2013 Opportunities

Lift Station Construction (#1 and #5)Advertise: 2nd quarter Contract (est): $1M

M130 Upper RoofAdvertise: 2nd quarter 2013 Contract (est) 250k

L107/L105 PavingAdvertise (on-call): 2nd-3rd quarter Contract (est): 130k

North Field Tower DemoAdvertise: 3rd or 4th quarter Contract (est) 250k-750k

The Bright Side of San Francisco Bay

• Better Reliability

• Lower Costs

• Brighter Future