AIA Conference John Nicholson Chief Executive Aviation NZ

AIA Conference John Nicholson Chief Executive Aviation NZ 27 July 2010 Engineering Division Connecting customers to New Zealand Aviation solutions

Overview Will cover: • Review of last year • Update on Aviation NZ • The region by sector matrix • What we are doing • Who wants a boarding pass? Connecting customers to New Zealand Aviation solutions

Supply Influence Demand NZ Companies Customers Aviation NZ Need Scale Collaboratio n Sector Champions Respond -Identifies -Validates -Facilitates -Builds scale -Develops Programmes -Promotes -Champions CAA AIA Mo. T NZTE Connecting customers to New Zealand Aviation solutions Interaction Opportunities Respond

Aviation NZ Role • Develops strategic relationships with international companies • Identifies, and validates opportunities • Facilitates and project manages responses • Raises NZ aviation profile • Encourages regulatory alignment Connecting customers to New Zealand Aviation solutions

The market outlook • Farnborough sales nearly US$29 b • Bullish Boeing and Bombardier 20 year forecasts • Asia Market growing fastest • Less maintenance, more outsourcing • EU moving away from Euro base • OEM technology relationships • Service function and relationships more important Connecting customers to New Zealand Aviation solutions

The sector/market mix Training MRO Airports India Yes No Poss China Yes No Poss South Pacific Poss Yes Poss Connecting customers to New Zealand Aviation solutions

The culture of doing business “… if we go into another country and make decision based on how we operate in our own home country – the chances are we’ll make some very bad decisions. ” Prof. Geert Hofstede, author of Culture’s Consequences, et al. “Know your enemy and know thyself and you can fight a hundred battles without peril (Sun Zi, The Art of War, 6 th century BC) iglobal

What is a brand? • The link between an organisation and its audience internal and external • A reputation • A perception of an organisation – both emotional and rational • A sum of all of the parts of an organisation • The glue that binds an organisation together and provides its stakeholders and members with a sense of belonging • A common voice and a collective force

Why build a brand? • To connect with your audiences – both internal and external • To build a reputation • To express the promise that your organisation offers • To deliver the promise that your organisation offers • To develop consistency which leads to trust • To build strength through solidarity • To increase the value of your organisation

What we are doing: the brand The vision: A specialised, globally connected high value, growing and sustainable service and manufacturing industry based on 21 st century technologies. Values Professional – expert advice Innovative – develops solutions Collaborative – brings together Responsive – customer focus Accountable – measured by results Connecting customers to New Zealand Aviation solutions

What we are doing - positioning Positioning statement: • New Zealand’s competitive MRO expertise keeps your aircraft safe and cost-efficient Substantiation • High quality standards, rising productivity levels and moderate OECD-level costs mean New Zealand MRO companies are internationally competitive. Connecting customers to New Zealand Aviation solutions

What we are doing: actions • Relationships in market • Relationships with key NZ companies for MRO project • ICAO –ACI AMPAP, Akl early Oct 2010 • ASPA event, Akl 11 and 12 Nov 2010 • Avalon Airshow 1 to 6 March 2010 • Potential visit from India • Potential South America research Connecting customers to New Zealand Aviation solutions

Who we are working with Anzes Axiam CHEC DC Ross Eurocopter Fieldair Hamilton Aero JMI Aerospace National A/C Interiors Oceania Peet Aviation Strategic Sourcing W&G Davies Aviation Enterprises Castech Compotec Eagle-i Fibreglass Developments Flight Interiors Hawker Pacific Metrology Group Northland Contract Boat Builders Pacific Aerospace Southair Southern Cross Engineering Connecting customers to New Zealand Aviation solutions

Collaboration at a price Connecting customers to New Zealand Aviation solutions

Conclusion • Aviation NZ is about collaboration to achieve the scale and breadth of response • We focus on higher value, but more complex solutions • Some programmes are in place • Opportunities exist for involvement • Who wants a Boarding Pass? Connecting customers to New Zealand Aviation solutions