Air Berlin PLC AGM 06 June 2013 London

Air Berlin PLC AGM 06 June 2013 London

airberlin a strong European carrier Market position as of 31 December 2012 No. 2 in core market: Germany / Austria / Switzerland No. 7 in Europe with 33.3 m guests in 2012 < Network carrier focused on business & leisure travelers Group revenue of EUR 4.31 billion Positive operating result (EBIT) of EUR 70.2 million improvement of more than EUR 300 million over the previous year Net profit of EUR 6.8 million Air Berlin PLC l AGM 2013 2

2012 - good progress in reducing costs and increasing efficiency 2012 start of a transformation process Challenges in 2012: increase in fuel prices the German Aviation tax intense competition Shape & Size improvements of >EUR 250 million airberlin became an integrated full service airline with numerous partnerships Transformation led to upfront investments and startup costs Air Berlin PLC l AGM 2013 3

Key performance indicators FY 2012 Operational development 2012 vs. 2011 35.30-5.5% Guests [m] Capacity [m] Number of flights [#] 33.35 Due to capacity reductions, number of guests declined 45.14-7.4% 41.79 Cancellation of unprofitable routes, hence number of offered seats reduced -7.4% 270,498 250,406 Network adjustments result in fewer number of total flights Guests [m] Capacity [m] Flights 78.2 Seat load factor [%] +1.6%p. 79.8 Seat load factor improves in line with capacity adjustments 111.4 +7.7% Yield [EUR] 120.1 Due to cancellation of unprofitable routes and measures to increase yield, topline quality improved 62.16-2.8% 60.40 ASK [bn] Due to route adjustments available seat kilometer declined by -2.8% Guests/capacity [%] Yield [EUR] based on IFRS flight revenue including a/p tax revenue ASK Air Berlin PLC l AGM 2013 2011 2012 4

Development Revenue and Cost per ASK 2012 vs. 2011 Revenue 1) per ASK [EUR ct] Cost 2) per ASK excluding fuel [EUR ct] 6.80 +5.0% 7.14 5.52 +1.3% 5.59 Airport charges 31.6% 30.2% R/ASK 2011 Cost 2) per ASK [EUR ct] 2012 Leasing & depreciation 16.1% 16.2% +3.6% Personnel 16.5% 17.4% 7.20 7.46 Navigation 8.3% 7.7% Others 27.5% 28.5% C/ASK incl fuel 2011 2012 2011 2012 1) Total revenue 2) Cost on EBIT level excluding other operating result Air Berlin PLC l AGM 2013 5

Financial Performance FY 2012 Revenue Despite a reduction of capacity, an increase in revenue is achieved from a slightly higher seat load factor and an increase in yield [EUR m] EBITDAR EBIT Net result Revenue growth, volume related cost reductions and "topbonus" transaction helped to improve EBITDAR significantly Improvement in EBIT is following EBITDAR development Followed by a better financial result, the company returned to net profit and improved by more than EUR 270 m (before adjustment of deferred taxes in 2011) +2% 4,227.3 4,311.7 +73% 425.9 736.4 +128% 70.2 6.8 2011 2012-247.0-420.4 Air Berlin PLC l AGM 2013 6

airberlin 2013 well positioned in core market Europe 150 destinations in 40 countries (incl. codeshare partners: 260 destinations) Leveraging global connectivity through Etihad Airways and oneworld Destinations Codeshare destinations Air Berlin PLC l AGM 2013 7

Strategic partnership with Etihad Airways continues to grow impressively the development promises to significantly exceed 2012 Codeshare performance Etihad Airways Etihad Airways is codeshare partner No.1 for airberlin Common Guests development 2012 Q1 2013 [ 000] Portfolio of nearly 100 codeshare routes 323.2 Further extensions intended, implementation upon approval of traffic rights 2012 2013 279.9 240.8 Utilization of growing opportunities resulting from hub improvement (i.e. Vietnam) Adding codeshare agreements with more Etihad Airways partner airlines in 2013 (i.e. Virgin Australia, JAT) 141.2 90.3 47.0 52.2 33.4 13.4 0.2 2.2 74.5 198.2 162.4 114.9 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Air Berlin PLC l AGM 2013 8

Network & Fleet Codesharing and interlining with Etihad multiplies the number of destinations and flights on offer A whole new world of choice Destinations operated by airberlin Destinations operated by Etihad Airways Los Angeles Chicago New York Dusseldorf Frankfurt Berlin Munich Beijing Fort Myers Miami Abu Dhabi Bangkok Phuket Joint strategic network approach Portfolio of almost 100 routes* 65 AB routes carry the EY code 32 EY routes carry the AB code By combining both airlines flight networks, the number of available flights increased to include 227 destinations in 83 countries Johannesburg Sydney *Codeshare scope as of Mar 2013 Air Berlin PLC l AGM 2013 9

Further synergies with Etihad Airways along the entire value chain The partnership with Etihad Airways is developing positively Sales Finance Marketing campaigns in major markets Joint placement of insurance policies Joint dealings Credit card acquiring Collaboration between AB Business points & EY Business Connect Fuel tendering Negotiations with lessors Operations Product Joint Procurement Pilot exchange programme Joint training Fuel efficiency programme Joint ULD contract Common cargo operation on AUH routes Premium lounges around the world Access to a growing number of Six Senses spas New Business Class cabin Private chauffeur service for business class travellers Purchasing 787: seats, IFE Selection of engines Aligning of Entry into Service programme Airport sourcing Catering Air Berlin PLC l AGM 2013 10

oneworld presents further opportunities for growth by providing airberlin with access to new destinations and additional passengers Codeshare performance oneworld More than 300,000 guests on joint codeshare routes in 2012 Extended codeshare network with oneworld partners cause strong increase of booking intakes demand exceeded 100,000 already in first quarter Alliance of service-orientated quality airlines Highest quality and safety standards News: American Airlines Expansion of cooperation, now including AA s hub in Chicago Planned merger with US Airways prospectively increases the route portfolio 103.1 98.2 59.6 74.6 34.4 56.1 31.6 16.3 Jan 2012 Feb Mar Common Guests development 2012 Q1 2013 [ 000] 2013 Apr May 126.9 Jun 157.8 Jul 189.5 Aug 222.7 Sep 253.6 Oct 279.6 Nov 310.1 Dec Air Berlin PLC l AGM 2013 11

Financial Performance [EURm] Q1 2013 compared to Q1 2012 Revenue EBIT Net result Despite 11% decline in available seat kilometers, revenue only declined by 3% due to better yield and load performance 812.9 791.9 EBIT in Q1 2013 was EUR 188.4m after EUR 149.3m Q1 2013: turnaround charges and other extraordinary items Resources not fully adapted to the changed production volume (e.g. fleet, personnel) Due to weaker noncash financial result, net result is weaker than previous year -149.3-188.4-163.6-196.3 Air Berlin PLC l AGM 2013 Q1/12 Q1/13 12

Key performance indicators Q1 2013 Operational development Q1 2013 vs. Q1 2012 Guests Capacity Number of flights -9% 6.51 5.92 Number of guests reduced, however less than capacity -12% 8.53 7.51 Capacity has been significantly reduced due to cancellation of routes -14% 52,101 45,065 In line with capacity reduction Guests [m] Capacity [m] Flights Load factor Yield ASK +3.3%p. 82.3 85.6 Improvement of load factor coming from good intercontinental performance 109.7 +6% 116.2 Good yield development 12.6-11% 11.2 Reduction in available seat kilometers due to cancellation of routes Load factor, RPK/ASK [%] Yield [EUR] based on IFRS flight revenue including a/p tax revenue ASK [bn.] Air Berlin PLC l AGM 2013 Q1/12 Q1/13 13

Stakeholder negotiations Lean & smart What we are doing to fix our core business Turbine combines internal structural changes and negotiations with major stakeholders 1 Internal: highly efficient organisation & processes External: highly regarded by customer 2 LEAN Optimise operations Efficient structures and workflows Cost reduction a b c d Network & Fleet Commercial Product / Service Operation SMART Focus on key markets Touristic and business segments Customer needs Brand values Bring major stakeholder relationships in line with market best practice Airport & ground handling Lessors & OEMs Labour and overhead TOP & distributors Wet lease providers Maintenance suppliers Air Berlin PLC l AGM 2013 14

Stakeholder negotiations Lean & smart Turbine progress: On track 1 2 Area Organisation effectiveness Human resources Commercial / Ancillaries Network & Fleet Operations Lessors Labour Other stakeholders Activities New airport operations, integrated network and revenue management organisations New airport operations, integrated network and revenue management organisations Headcount reduction of ~250 FTEs until end of May Executive functions reduced by ~40 FTEs, pay cuts implemented New distribution strategy focused on revenue quality New ancillary revenue initiatives underway Improved sales intelligence systems Improved summer schedule Optimised winter schedule being developed New boarding procedure / baggage policy agreed; roll-out to begin in June together with SLAs Final round of negotiations with majority of stakeholders Ongoing negotiations with pilot, cabin crew and ABT unions Ongoing negotiations with key third party providers (e.g., top 15 airports, top 4 catering providers, main wet lease and maintenance providers, etc.) Air Berlin PLC l AGM 2013 15

Turbine: Timeline for achieving financial targets Cumulative benefit 2013/14 (Illustrative) Target ~ EUR 400m >EUR 200m 2013 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 Effects of >EUR 200m on EBIT level targeted in 2013 Majority of effects in 2013 ramp up from Q3 onwards Q1/Q2 with over proportional fix costs, i.e. aircraft, aircraft redeliveries, personnel etc. Program will deliver ~EUR 400m on EBIT level compared to 2012 Realisation of network effects full on track Air Berlin PLC l AGM 2013 16

Guidance for 2013 Operational performance Capacity Increase in long haul Decrease in short and medium haul Capacity utilization and income Increasing load factor through network reduction, improved sales platform and partnerships Result Revenue Growth in revenue through yield and load factor expected despite capacity reduction Expenses Cost per ASK excl. fuel will decrease in the course of the year Structural cost increases will be offset through Turbine Result Operational profitability Balance sheet Balance sheet Liquidity improved through the issued convertible bond and good booking intakes Equity ratio target of 15-20% by mid term Deleveraging is the key objective for 2013; initiatives are on the way A L Net debt target remains to be around EUR 500 m by the end of 2013 Target: operational profitability Air Berlin PLC l AGM 2013 17

Air Berlin PLC AGM 06 June 2013 London