AVIATION BUDGET REVIEW

OCT 2, 2013 2014 BUDGET

DEN Strategic Overview

Citywide Vision: We will deliver a world-class city where everyone matters

Denver International Airport Americas favorite connecting hub, where the Rocky Mountains meet the world

Winning the Hearts of our Customers

Partnering for operational excellence

Investing for sustainability

Putting DEN on the world map

Building Airport City

Excelling in financial performance

Inspiring our employees

Source: DEN Strategic Plan

-2-

Aviation Mission Level Metrics

Priority Metrics Total number of passengers Total number of enplaned passengers Bond ratings Gross concession revenue per enplaned passenger Cost per enplaned passenger Explanation of Metrics Total number of passengers originating & destination passengers and transfers inbound & outbound Total number of enplaned passengers originating passengers and transfers outbound Bond rating S&P and Fitch (the same)/Moody's Gross concession revenue per enplaned passenger gross concession revenues (from food & beverage, merchandise & service establishments) divided by applicable enplaned passenger count for the same period Cost per enplaned passenger calculated where the actual OR budgeted airport costs for the following categories (basic rates and charges, tenant finishes, equipment and systems) are calculated after the inclusion of the airline revenue credit and divided by the applicable enplaned passenger count for the same period 2011 Actual 52,849,132 26,455,795 A+/A1 $10.18 $11.50 2012 Actual 53,156,278 26,597,141 A+/A1 $10.58 $11.56 2013 Estimated 52,848,000 26,424,000 A+/A1 $10.88 $12.08 2014 Objective 53,620,00 26,810,000 A+/A1 $11.23 $12.52

Source: DEN revenue reports

-3-

Aviation Organization Chart

DENVER INTERNATIONAL AIRPORT 2014 ORGANIZATION

Kim Day Manager of Aviation 6000000

John Ackerman Commercial (RMB) 6019000

Dave LaPorte Airport Infrastructure Management (AIM) 6018000

Patrick Heck Finance & Administration (BTD) 6013000 6042000

Robert Kastelitz Technologies (TEC) 6017000

Ken Greene Airport Operations (OPS) 6015000

Stacey Stegman Global Communications & Marketing (PRM) 6012000

Eric Hiraga Executive Division (EXE) 6011000 6041000

Xavier Duran Director Airport Legal Services Office of the City Attorney

Dani Brown Director Office of Human Resources

Stu Williams Director Planning

Dan Poremba Managing Director Airport City Development

Sarah Bruton Director Customer Service

Heather Barry Director DIA Commercial Hub

Laura Jackson Director International Air Service

Amy Raaz Government Affairs Liaison

Source: DEN organizational charts and FP&A analysis

-4-

DEN 2014 sources and uses of revenue overview

Primary revenue sources are airline & non-airline revenues while uses of revenues are generally for Operating & Maintenance (O&M) expenses and debt service DEN 2014 Sources Total = $803 million
Other NonOperating Revenues(2) $28 4% Airline Revenues $368 46%

DEN 2014 Uses Total = $803 million

Airport Share of Revenues(4) $51 6% Airline Revenue Credit(5) $40 5%

PFCs(1) $106 13%

O&M Expenses(6) $375 47% Debt Svc(3) $337 42%

Non-Airline Revenues $301 37%

Notes: (1) Passenger Facility Charges (PFCs) $4.50 collected per enplaned passenger to fund Federal Aviation Administration (FAA) approved projects that, for example, enhance safety, security, or capacity; reduce noise; or increase air carrier competition (2) Other Non-Operating Revenue includes interest, Worldport (i.e., tenant revenues), Stapleton (i.e., interest), and concession joint marketing (i.e., advertising fees) (3) Debt Service interest and principal payments on all outstanding bonds due in 2014 (4) Airport share of revenue the airports deposit into the capital account (5) Airline Revenue Credit the airlines portion of the revenue split capped at $40 million (6) O&M Expenses includes both operating expenses of $369.7M and capital equipment of $5.2M Sources: 2013 Plan of Financing Handbook; 2013 Affordability Analysis and DEN 2014 budget documents
documents

-5-

Aviation Base Budget Overview

Budget Highlights1 Personnel Services Contracts, Supplies and Materials Internal Services and Misc. TOTAL 2012 Actual $88,633,542 $183,806,227 $48,287,783 $320,727,552 2013 Budget $99,992,724 $204,345,235 $51,345,641 $355,683,600 2014 Budget $100,892,631 $216,248,150 $52,585,919 $369,726,700 Variance 2014 vs. 2013 $899,907 $11,902,915 $1,240,278 $14,043,100 Percentage 2014 vs. 2013 0.9% 5.8% 2.4% 3.9%

Summary of 2014 Budget Proposal Expenses Personnel Services increase of 0.9% driven by incorporating vacancy savings, which is offset by merit increase, snow overtime and benefits, includes decrease in uniform personnel moved to contracts Contracts, Supplies and Materials increase of 5.8% due to CPI increases in utilities, AGTS, and shuttle service, realigned duties from uniformed police to contract guard services, & increased credit card banking fees Internal Services and Misc. increased of 2.4% due to indirect cost allocation provided by city Revenue Total Revenue 2012 Actual $778,148,493 2013 Estimated $816,856,583 2014 Proposed $803,127,200 Variance 2014 vs. 2013 ($13,729,383) Percentage 2014 vs. 2013 (1.7%)

Summary of 2014 Budget Proposal Revenues Operating: decrease of $6.1M primarily due to airline revenues, offset by increase in non-airline revenue Non-Operating: decrease by $8.2M primarily due to reduced interest on expiring long-term investments
Note: (1) Budget numbers do not include capital equipment Sources: DEN budget reports and DEN revenue reports -6-

Aviation Base Budget Overview

Division Executive Office Communications & Marketing Finance and Administration Airport Operations Planning and Development Technologies Maintenance Commercial Total Key Drivers: Executive Office: increase due to addition of art services and airport city sections Finance & Administration: increase due to sequestered funds for unplanned contingencies and implementation of strategic plan initiatives, Peak Performance initiatives, and indirect cost study Planning & Development: increase due to Pea Boulevard Study regarding non-airport use Technologies: increase due to purchasing sufficient software licenses for actual usage, market cost increases, increased maintenance for more supported users, and movement of some capital items into O&M 2012 Actuals $8,029,778 $1,840,440 $38,079,253 $58,436,567 $5,760,912 $18,666,458 $143,047,095 $46,867,049 $320,727,552 2013 Budget $11,343,200 $2,999,200 $41,877,800 $61,705,700 $6,584,619 $22,462,200 $157,225,081 $51,485,800 $355,683,600 2014 Budget $13,122,800 $3,054,700 $46,889,100 $62,153,900 $7,061,800 $25,857,300 $158,785,800 $52,801,300 $369,726,700 Variance 2014 vs. 2013 $1,779,600 $55,500 $5,011,300 $448,200 $477,181 $3,395,100 $1,560,719 $1,315,500 $14,043,100 % Change 2014 vs. 2013 15.7% 1.9% 12.0% 0.7% 7.2% 15.1% 1.0% 2.6% 3.9%

Sources: DEN budget reports and DEN audited year end financials

-7-

Aviation General Fund CSA Personnel Overview

Career Service Authority (CSA) Employees Total Personnel Budget Overtime FTE On-Call Budget On-Call FTE Total FTE-CSA 2012 Actual $88,633,542 $4,971,485 1,099 $353,776 36.5 1135.5 2013 Budgeted $99,992,724 $6,518,240 1,138 $1,710,859 36.5 1174.5 2014 Projected $100,892,631 $5,952,870 1,158 $1,902,718 38.5 1196.5 Variance 2014 vs. 2013 $899,907 ($565,370) 20 $191,859 2 22 % Change 2014 vs., 2013 0.9% (8.7%) 1.8% 11.2% 5.5% 1.9%

Key Drivers: Increase in FTEs drive variance in budget (see slide 12 for greater detail on FTEs) Decrease in snow overtime Higher rate of vacancy in positions filled On-Call 2013 FTE total includes 10 added after initial budget determined

Source: DEN budget reports

-8-

Aviation Fund Uniform Personnel Overview

Uniform Employees Police Personnel1 Fire Personnel1 Total Personnel Costs1 Police Overtime Fire Overtime Total Overtime TOTAL FTE Key Drivers: Personnel In 2012 only 117 were budgeted based on planned head count, even though 141 were authorized Actual 2012 performance was under budget with 112 personnel effective for the year Overtime Adjusted downward as police overtime is transferred to HHS guard service contract 2012 Actual $11,778,250 $11,082,000 $22,860,250 $3,625,880 $1,238,175 $4,864,055 242 2013 Budget $13,018,464 $11,287,130 $24,305,594 $2,844,000 $1,563,467 $4,407,467 218 2014 Budget $13,254,674 $11,589,591 $24,844,265 $2,000,000 $1,579,102 $3,579,102 218 Variance 2014 vs. 2013 $236,210 $302,461 $538,671 ($844,000) $15,635 ($828,365) 0 Percentage 2014 vs. 2013 1.8% 2.7% 2.2% (29.7%) 1.0% (18.8%) 0%

Note: (1) Personnel costs include workers compensation Sources: DEN budget reports, DEN audited year end financials and Police and Fire contracts

-9-

Aviation Revenue Overview

Operating Airline: Landing Fees(1) Facility Rentals(2) Non-Airline: Commercial(3) Aviation Fuel Tax(4) Other(5) Total Operating: $234,726,442 $32,782,884 $18,406,121 $624,673,151 $247,074,433 $29,503,000 $17,876,000 $673,258,454 $252,966,900 $29,736,200 $18,529,200 $668,825,500 $5,355,167 $233,200 $653,200 ($4,432,954) 2.2% 0.8% 3.7% (0.7%) $127,346,400 $211,411,304 $142,459,100 $236,346,921 $152,068,900 $215,524,300 $9,609,800 ($20,822,621) 6.7% (8.8%) 2012 Actuals 2013 Budgeted 2014 Projected Variance 2014 vs. 2013 % Change 2014 vs. 2013

Notes: (1) Landing Fees total of fee charged per 1,000 lbs. of landed weight (2) Facility Rentals based on rented space and rates charged; decrease primarily due to baggage system defeasance, debt service, and reduction in rented space (3) Commercial includes food/beverage, retail, rental car, and increased parking revenues from increased usage and fees (4) Aviation Fuel Tax increase in fuel prices (5) Other key increase is the natural resources account, which anticipated completion of a new well Sources: DEN 2013 budget reports, DEN audited year end financials, and Commercial revenue analysis - 10 -

Aviation Revenue Overview

2012 Actuals $105,472,260 2013 Budgeted $105,355,700 2014 Projected $106,200,000 Variance 2014 vs. 2013 $844,300 % Change 2014 vs. 2013 $0.8%

Non-Operating Passenger Facility Charges(1) Other: Interest(2) Other(3) Total Non Operating:

$46,550,100 $1,452,983 $153,475,342

$35,362,487 $2,879,942

$26,219,900 $1,881,800

($9,142,587) ($998,142) ($9,296,429)

(25.9%) (34.7%) (6.5%)

$143,598,129 $134,301,700

Notes: (1) Passenger Facility Charges $4.50 collected per enplaned passenger to fund Federal Aviation Administration (FAA) approved projects that enhance safety, security, or capacity; reduce noise; or increase air carrier competition; based on passenger forecasts (2) Interest majority of variance due to use of bond funds and market fluctuations lowering return on investments (3) Other primarily consists of Worldport (i.e., tenant revenues), Stapleton (i.e., interest), and decrease based on no concession joint marketing (i.e., advertising fees) budgeted in 2014 Sources: DEN 2013 budget documents, DEN audited year end financials, and Commercial revenue analysis - 11 -

Personnel
22 new FTEs as part of 2014 budget 3 in AIM
Convert from another agency, cheaper in-house

4 in Commercial
New for vendor development and relations

9 in Technologies
Contract conversions, cheaper in-house

6 in Finance and Administration1 10 new in 2013 2 in Art Program

Contract conversions, cheaper in-house

3 in Technologies
Contract conversions, cheaper in-house

4 in Airport Infrastructure Management

Contract conversions, eliminated sweeper/power wash contracts, cheaper in-house

2 Half-time on-call positions converted to full-time

Workload justified full-time positions
Note: (1) New FTEs represent new model of financial expertise residing within divisions, which will be allocated to appropriate divisions once createdno net increase of FTEs within Finance & Administration Source: DEN Budget Reports - 12 -

Aviation Accomplishments
New international flights to Japan, Mexico, Canada, and Jamaica Three new domestic cities added DEN serves second most domestic destination in the U. S. Recognized as top 10 Worlds Best Airports Over 50 Million Passenger and #3 Best Airports in North America South Terminal Redevelopment Project construction started, development on schedule with maximum price contract Record number of passengers over 53.1M, 5th straight year >50M Implemented cutting-edge RNAV arrival and departure system Installed Clear Channel Airports Video Towers largest digital displays planned for any U.S. airport Opened Southwest Airlines crew bases 5th largest SW Hub New Change for Change donation program for travelers entering security areas raised nearly $17,000 Brought total MWBE certified firm total to 1,060 businesses
General Note: 2013 YTD Accomplishments Source: DEN Communications and Marketing - 13 -

Questions

- 14 -