NATS Unclassified NATS overview. NATS Unclassified What do we do? Slide 2.

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NATS overview

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What do we do?

Slide 2

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also provides services worldwide

is the UK’s leading air traffic management provider, maintaining the orderly, efficient and, above all, safe passage of aircraft through UK airspace and beyond

» 24 hours a day, 365 days a year

» Handled nearly 2.2m flights in FY 2011/12 (87% of flights to/from UK 13% overflights

is the UK’s leading provider of innovative air traffic services and solutions.

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Slide 4

Our service lines

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USA

Linking of NATS Airport CDM platform to US Next

Generation Testbed

Qatar

Two year airspace design and implementation

consultancy project at the New Doha

International AirportSingapore

Terminal airspace design and ATC system

surveillance trackers' performance projects

underway

Japan

Airport capacity modelling and analysis to

help the design and development of Narita

India

Capacity enhancement study to analyse reducing

congestion, enhancing productivity and increasing

operational efficiency at Mumbai International

Airport

Hong Kong

Airspace re-design and related services for Hong

Kong Civil Aviation Authority

South Africa

Procedure design for ATNS South Africa around 2010

World Cup

USA

Opening of NATS USA subsidiary

Providing services worldwide

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Oman

Airspace re-design for DGMAN Oman

United Kingdom

New environmental metric and performance scheme to drive down carbon emissions and

fuel costs

United Kingdom

Fit out of new Manchester Airport control tower

Spain

ferroNATS selected to provide ATS at ten

airfields

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NATS Airports represents our innovative ATC and airport optimisation services which we offer to UK and international airport customers

»Provides Airport ATS at 15 major commercial airports in UK, as well as Gibraltar, under competitive contract to the airport operator

»Delivers new solutions to capacity constrained airports to improve their operations

»Recently won a contract to provide air traffic control services at 10 Spanish airports

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UK Airports

Slide 7

EDINBURGH

BELFAST

GLASGOW

ABERDEEN

MANCHESTER

LUTON

STANSTED

LONDON CITY

GATWICKHEATHROW

SOUTHAMPTON

FARNBOROUGH

CARDIFF

BRISTOL

BIRMINGHAM

Heathrow has over 1,300 flights per day

85/90 aircraft per hour during the operating day and the most intensively utilised airport in Europe

Gatwick is the busiest single runway airport in the world

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NATS Airspace represents our safe and efficient en route services

» The sole provider of en route air traffic services in UK airspace – economically regulated and operating under licence from the CAA» Two control centres at

Prestwick and Swanwick

» Provides Shanwick air traffic services for the easternNorth Atlantic

» Provides all the supporting communications, navigation and surveillance infrastructure and facilities

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SCOTTISH AREA CONTROL CENTRE

LONDON AREA CONTROL CENTRE

SHANWICK AREA CONTROL CENTRE

Two control centres- Swanwick & Prestwick

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Prestwick

Responsible for 880,000 flights per year in the airspace over the north of the UK (Scotland, Northern Ireland, Northern England, the Midlands, North Wales and the North Sea), and 390,000 flights over the North Atlantic Ocean, the busiest ‘remote area’ operation in the world

Handles approximately 41% of the UK’s air traffic

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Swanwick

Handles on average 5,500 flights each and every day of the year

Controls 200,000 square miles of airspace above England and Wales including the complex airspace of London

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London Area Control Operations

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Controls upper level en route traffic over London and South East England

Handles around 5,500 flights per day, busiest Area Control Centre in Europe

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London Terminal Control Operations

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Controls low level traffic around London and South East England

Including aircraft making approaches and departures to and from the main London airports

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NATS Consultancy is the initial point of contact for many of our new UK and international customers.

It provides a window to the range of capability of services available.

Slide 14

» Our areas of expertise include airspace design, engineering, ATC operations and transition management, safety management, operational analysis, project management, wind farm mitigation and simulation, human factors and training.

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NATS Defence is the main point of contact for our military customers. NATS provides a range of innovative defence services.

Slide 15

NATS already has a well established relationship with the MoD in the UK, through the provision of joint and integrated civil and military air traffic control services under the Future Military Area Radar Services (FMARS) contract

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Slide 16

NATS Engineering provides engineering services to airport operators, construction companies and ATM industry suppliers, mainly integrating new ATM infrastructure at airports.

Recent examples of our work include the delivery into operation of new control towers at Heathrow, Farnborough, Edinburgh, Newcastle, Jersey and Isle of Man and the ground-breaking Virtual Control Tower (VCF) at Heathrow, the first fully certified virtual tower anywhere in the world.

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Slide 17

NATS Information seeks to source and integrate traffic, meteorological and AIM data which can be offered to our customers to transform their performance.

Increasingly our customers are looking to information as the key enabler for future efficiency, improved passenger experience and flight optimisation.

Large development programmes in Europe (SESAR) and America (NextGen) have established a future concept of operations which is underpinned by the need for a common operational picture, shared between the ground and aircraft.

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Our people

Slide 18

currently has approximately 4550 employees:

1900AIR TRAFFIC CONTROLLERS

750AIR TRAFFIC SERVICE ASSISTANTS

1000ENGINEERS

900ADMINISTRATION AND SUPPORT

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How did we get here?

Slide 19

1972BECOMES PART

OF THE CAA

1962

NATS ESTABLISHED

1996

PUBLIC-PRIVATE PARTNERSHIP FOR NATS IS PROPOSED

1996NATS IS REORGANISED INTO A COMPANY AND BECOMES A WHOLLY-OWNED SUBSIDIARY OF THE CAA, PUTTING IT AT ARM’S LENGTH DISTANCE

FROM ITS REGULATOR

2000

TRANSPORT ACT ENSHRINES THE PPP

2001AIRLINE GROUP CHOSEN AS PREFERRED PARTNER; AG BUYS 46% OF SHARES, 5%

DEVISED TO STAFF

2003

TEN YEAR £1 BILLION INVESTMENT

PROGRAMME LAUNCHED

2003FINANCIAL RESTRUCTURING OF NATS, NECESSITATED BY AVIATION INDUSTRY

DOWNTURN AFTER SEPTEMBER 11 2001, IS COMPLETED, WITH FURTHER

INVESTMENT FROM GOVERNMENT AND BAA PLC OF £65M EACH. BAA TAKES 4%

SHAREHOLDING, REDUCING AG’S SHAREHOLDING TO 42%. £600M BOND

ISSUE SUCCESSFULLY COMPLETED

2008

SALE OFHEATHROW TOWER

2010COMPLETION OF THE

TWO-CENTRE STRATEGY WITH CONTROL CENTRES IN SWANWICK AND PRESTWICK

2011

NATS WINS SPANISH TOWERS CONTRACT

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Slide 20

NATS MANAGES PEAKS IN TRAFFIC THROUGHOUT THE LONDON OLYMPIC

GAMES

2012

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21

London 2012 Olympic Games

For the London Olympic Games NATS had to plan and prepare for:

»Half a million overseas spectators arriving into the UK;

»Flights carrying 70,000 overseas ‘Games Family’ members;

»Flights carrying 150 Heads of State;

»700 extra commercial flights into London’s main airports;

»10,000 business jet movements.

While managing all that NATS also had to serve its customers and the flying public and:

»Maintain and maximise capacity of London’s core Terminal Manoeuvring Area Airports who would be operating at maximum capacity at times;

»Create extra capacity to satisfy demands on Instrument Flight Rules (IFR) airspace to continue to meet core demands without significant disruption;

»Manage a significant expected increase in IFR movements to London’s second and third tier airports;

»Satisfy national security requirements in terms of various threats.

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22

London 2012 Olympic Games

After years of preparation, NATS delivered a gold-medal level performance. Despite traffic peaks, there were only 593 minutes of delay attributable to NATS throughout the whole Olympics. This compares to last year’s figure for the same period of more than 13,000 minutes of delay - a 95% reduction.

This was made possible through our close working relationships with the MOD, CAA, General Aviation Community, Airlines and Airport Operators.

With no risk bearing losses of separation attributed to the Olympics and just two infringements of NATS temporary Controlled Airspace by general aviation aircraft.

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Inside NATS

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Financial summary

£865 million had an annual turnover of(FY 2011/12)

£195 million made an annual profit of(FY 2011/12)

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NOTE: NATS TOOK ADVANTAGE OF THE EXEMPTION AVAILABLE UNDER IFRS1 AND HAS NOT RESTATED NET DEBT AS AT 31 MARCH 2005 TO TAKE ACCOUNT OF THE REQUIREMENTS OF ACCOUNTING STANDARDS APPLICABLE TO FINANCIAL INSTRUMENTS (IAS32 AND IAS39).  THESE STANDARDS WERE ADOPTED AS OF 1 APRIL 2005 AND NET DEBT FROM 31 MARCH 2006 REFLECTS THE REQUIREMENTS OF THESE STANDARDS.

1 – THIS INCLUDES THE SALE OF THE OLD HEATHROW TOWER

Five years of performance

Financial Year Ended 31 March 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12

Flights Handled 2,405,573 2,480,004 2,371,624 2,172,025 2,116,000 2,167,000

Average Delay in Seconds (Attributable to NATS)

22.6 26.8 19.3 4.3 4.3 7.3

Safety (Airprox)

Where NATS is providing the service 55 57 52 41 34 29NATS attributable 17 18 17 6 6 5

Risk-bearing (A or B)1

2 0 0 0 0

NATS Group Profit/(Loss) before Tax (£m)

As stated under UKGAAPAs stated under IFRS 94.4 66.7 135.51 78.3 106.1 194.5

NATS Group Net Debt (£m)

As stated under UKGAAPAs stated under IFRS (NB) 577.3 538.1 480.3 519.7 528 509

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OperationsNATS (En Route) plc

NATS structure and ownership

En route & Oceanic

BAA(4%)

Airline Group (42%)

Government(49%)

Licensed by Govtvia CAA

ServicesNATS (Services) Ltd

CAA

Slide 26

Employees(5%)

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NATS Executive

Slide 27

Chief Executive Officer

Richard Deakin

Finance Director

Nigel Fotherby

General Counsel & Company Secretary

Human Resources Director

Gerry Skelton

Managing Director Operations

Martin Rolfe

Managing Director Services

Paul Reid

Communications Director

Simon Warr

Safety Director

David Harrison

Richard Churchill - Coleman

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Operations Leadership Team

Slide 28

Managing Director Operations

Martin Rolfe

General Counsel & Company SecretaryRichard Churchill - Coleman

International Strategy Director

Safety DirectorDavid Harrison

Strategy and Deployment DirectorSimon Hocquard

Training & Simulation Director

Garry Jackson

Human Resources DirectorGerry Skelton

Mike Stoller

Operations Director (Prestwick)Pauline Lamb

Head of Employee CommunicationsDeborah Seymour

Finance DirectorNigel Fotherby

Alastair Muir

Engineering & Programmes Director

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Services Leadership Team

Slide 29

Managing Director NATS ServicesPaul Reid

Engineering DirectorIain Harris

Finance Director, Services Communications DirectorSimon Warr

Safety Director, ServicesSteve Williamson

Human Resources DirectorSarah Stacey

Guy Adams

International Strategy DirectorAlastair Muir

Business Development DirectorAndy Head

Operations Director (Airports)Juliet Kennedy

Head of ConsultancyFergus Cusden

Head of InformationBen Kiff

Head of DefenceEwan Kelbie

Assistant General CounselTony Payne

General Manager Customer AffairsAndy Shand

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Visit www.nats.co.uk

for more information