APG World Connect ConferenceConference

Neil WilsonVice President, General Counsel

& Corporate Secretary

October 2012

• Private, non-share capital company

• 2nd largest ANSP in the world

• 12 million aircraft movements annually

Who We Are

annually

• 18 million square km of airspace

• Cdn.$1.2 billion annual revenues

• AA Ratings

Our Services• Air Traffic Control

• Flight Information

• Weather Briefings

• Aeronautical Information

• Airport Advisory Services• Airport Advisory Services

• Electronic Navigation Aids

• Sale of technology & services

Safety

Service Charges• Introduced in 1997-99

– Air Transportation Tax (ATT) abolished

– Terminal, enroute, oceanic

• Can only be set at the level required to meet our financial requirements of providing ANS servicesfinancial requirements of providing ANS services

• Must adhere to other charging principles covering safety, non-discriminatory pricing, Northern Services etc.

• Charges can be appealed

HISTORY OF NAV CANADA RATE CHANGES(1)

VERSUS CONSUMER PRICE INDEX(2)

115

120

125

130

135

IND

EX

TO

199

9

CONSUMER PRICE INDEX

Service Charges

85

90

95

100

105

110

Mar

-99

Jun-

99Sep

-99

Dec-9

9M

ar-0

0Ju

n-00

Sep-0

0Dec

-00

Mar

-01

Jun-

01Sep

-01

Dec-0

1M

ar-0

2Ju

n-02

Sep-0

2Dec

-02

Mar

-03

Jun-

03Sep

-03

Dec-0

3M

ar-0

4Ju

n-04

Sep-0

4Dec

-04

Mar

-05

Jun-

05Sep

-05

Dec-0

5M

ar-0

6Ju

n-06

Sep-0

6Dec

-06

Mar

-07

Jun-

07Sep

-07

Dec-0

7M

ar-0

8Ju

n-08

Sep-0

8Dec

-08

Mar

-09

Jun-

09Sep

-09

Dec-0

9M

ar-1

0Ju

n-10

Sep-1

0Dec

-10

Mar

-11

Jun-

11Sep

-11

Dec-1

1M

ar-1

2Ju

n-12

IND

EX

TO

199

9

1. AVERAGE CHANGES SINCE CHARGES WERE FULLY IMPLEMENTED ON MARCH 1, 19992. CONSUMER PRICE INDEX - GROWTH ASSUMED TO BE 2.0 PER CENT FOR 2012

NAV CANADA RATES

Technology Progress

• Investment– over $1.8 billion in new

systems, technology and systems, technology and facilities since 1996

• Significant benefits to customers

• Planned joint venture between Iridium Communications Inc. and NAV CANADA.

• Constellation of 66 cross-linked Low Earth Orbit (LEO) satellites, extends ADS-B coverage to every flight path across the planet.extends ADS-B coverage to every flight path across the planet.

• Will enable all air traffic management agencies around the globe to increase operational efficiencies, fuel savings and better use of air space.

• Designed to be a platform for innovation and growth and will generate business opportunities for partners and customers around the world.

11/7/201210 Iridium Proprietary and Confidential

Aireon Provides a Transformative Solution

Estimation based on Iridium commissioned independent studies

Aireon Summary of Benefits• First ever complete pole-to-pole coverage

• Estimated annual fuel savings of $100 million for North Atlantic

• Enhanced safety and decreased congestion• Enhanced safety and decreased congestion

• Increased air operations capacity and efficiency

• Reduced emissions and environmental impact

• NAV CANADA involvement as partner, subject to completion of formal agreements in the near future

11/7/201213 Iridium Proprietary and Confidential

• 21 M Metric tons of GHG

reductions by 2020

• $7 B Projected total fuel savings

1997-2020

“Best Air Navigation Service Provider”

International Air Transport Association (IATA) Eagle Award Program