REX AGM 2010 AGAINST ALL ODDS PERFORMANCE Record Net Profit After - - PowerPoint PPT Presentation

REX AGM 2010

“AGAINST ALL ODDS”

PERFORMANCE

Record Net Profit After Tax of $24.6m Total Revenue reduced by 8.5% to $229.7m Passenger numbers declined by 5.0% to 1.24m

REX GROUP FINANCIALS

Rex Group Revenue and PAT Evolution

$24.6M $23.0M $24.3M $15.7M $6.5M $1.0M

• $30.3M

$23.6M $221.1M $244.1M $256.1M $170.8M $142.3M $110.5M $83.8M $223.9M

• $10
• $5

$0 $5 $10 $15 $20 $25 $30

• $100
• $80
• $60
• $40
• $20

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 $220 $240 $260 Operating Revenue

FY03 FY04 FY05 FY06 FY07 FY08 FY10 FY09

GFC GFC = Global Financial Crisis NPAT

PILOT SITUATION

Resignation rates remained low Cadet Programme enabled surplus pilot numbers 0.2% cancellation rate, the lowest in Australia and consistent with past levels before the pilot crisis of 07/08

REX PILOT ATTRITION

17% 7% 50% 14% 15%

10 20 30 40 50 60 70 80 90 100 110 120 FY06 FY07 FY08 FY09 FY10 Resignation

NETWORK CHANGES

Resumed Griffith – Melbourne in Q2 Q2 started Townsville - Mackay in competition with QantasLink Exit of Townsville – Mackay in Jan 2010 due to QantasLink predatory pricing Q3 commenced Northern 1 & 2 QLD Gov subsidised routes Commenced Townsville – Mount Isa direct service in Feb 2010

FUEL

20% lower fuel prices compared to previous FY

Fuel Spend FY0506 - FY0910

• 5.0

10.0 15.0 20.0 25.0 30.0 35.0 FY05/06 FY06/07 FY07/08 FY08/09 FY09/10 F u e l S p e n d ( A $ M )

INDUSTRY RECOGNITION

CAPITAL EXPENDITURE

Completed $21m pilot academy (AAPA) based in Wagga Wagga Acquired 4 Kingairs for $29m (bank financed) Acquired a $1.4m warehouse next to the Rex HQ Purchased a $1.2m house next to Rex HQ Share Buy Back of 494k shares ($377k) $10m of investment brought forward to benefit from Government’s Investment Allowance scheme

FLEET

Rex took delivery of last 8 Saab 340B+ leased aircraft AAPA took delivery of 8 new Piper Warrior and 2 new twin engine Piper Seminole aircraft Pel-Air took delivery of 4 new Beechcraft Kingair B200 C aircraft for AV project No disposal of aircraft in the period

TENDER UPDATE

Fly in/Fly out contract with Illuka Resources Cwlth Air Transport Deed of Standing Offer QLD regulated and subsidised N1 & N2 routes Air Ambulance Victoria Whole of Australian Gov travel Victorian Gov tender for the provision of Domestic/Regional Air services

Tenders Won

TENDER UPDATE

NT aero medical service Air Defence Target System (JP66)

Tenders Pending

OUR SUBSIDIARIES

Pel-Air

Reduced jet medivac operations Fly in/fly out business continued to grow in line with resource strength Stationed 1 A model Saab in QLD to capture growth opportunities in the resources industry

OUR SUBSIDIARIES

Air Link

Continued developing charter service and growing 3rd party aircraft maintenance business Commenced FIFO operation out of Townsville with B1900

OUR SUBSIDIARIES

AAPA

Received occupancy cert in Jan 2010 Attained RTO and CRICOS accreditation in Q3 – ready to accept overseas students 35 cadets from intakes 1 & 2 graduated whilst 29 were under training Campus officially opened on 27 May 2010 by Minister Anthony Albanese

OUR SUBSIDIARIES

REX IN THE COMMUNITY

Moruya City Mayor Fergus Thomson, President of Moruya Jazz Festival Roger Bayley & Rex Ambassador Max Kingston leading the parade

REX IN THE COMMUNITY

Rex donated in excess of A$ 100,000 to various charitable causes in FY0910: Country Hope in the Riverina Dragon Abreast Orange Muscular Dystrophy Association Royal Institute for Death and Blind Children Multiple Sclerosis Society

DIVIDEND

Final dividend FY09-10 : 6.6 cents per share, fully franked, payable in Nov 2010

THANK YOU

PROXY SUMMARY

AGM 2010 Proxy Results

99.0% For 98.71% For 0.65% Open 0.57% Open 0.34% Against 0.72% Against 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% Resolution 1: Adoption of remuneration report Resolution 2: Re-election of David Miller as director Resolution Percentage of Valid Votes Received

FOR OPEN AGAINST