1. Port of Seattle Presentation to the Western States Institutional Investors Conference
Elizabeth Morrison, Director of Corporate Finance, Port of Seattle
Revised June 22, 2017

2. Port of Seattle Overview 3 SeaTac Airport Update 9
TABLE OF CONTENTS
Port of Seattle Overview 3
SeaTac Airport Update 9
Non-Airport Businesses 11
Port of Seattle Capital Plan and Funding 12
The 2015 financial information has been restated to reflect the Port’s new organization structure that took effect in 2016 and may not tie to the Port’s audited financial statements.  The 2016 information is based on actual performance as of December 31, 2016.  The information is provided as preliminary, subject to change, for illustrative purposes.

3. Port of Seattle – Independent Port Authority In A Growing Economy
BUSINESSES
STATUTORY TAXING AUTHORITY
Port operates and manages Sea-Tac International Airport
Port has a 50% interest in the Northwest Seaport Alliance (NWSA), a joint venture with the Port of Tacoma
Other businesses include various Maritime and Economic Development Division (EDD) activities
Port is authorized to levy property taxes within King County
Maximum 2017 property tax levy: $99.0 million
Actual 2017 property tax levy: $72.0 million
Port’s tax levy represents 1.6% of total King County property tax levy
In 2016, Seattle was the fastest growing big city
According to the U.S. Census Bureau

4. Port of Seattle – Organizational Structure Changed in 2016
NWSA
PORT OF SEATTLE COMMISSION
INTERNAL AUDIT
PORT OF TACOMA COMMISSION
EXECUTIVE OFFICE
Airport
Maritime
EDD
Corporate

5. Port of Seattle – 2017 Initiatives
AIRPORT INITIATIVES
OTHER INITIATIVES
Capital improvements to accommodate traffic growth
Near-term projects include expansion of the North Satellite Terminal, construction of a new international arrivals facility and temporary hardstand facilities
Longer-term development of an airport master plan
Negotiations for a new or amended airline agreement
Current agreement expires at the end of 2017
Key issues include gate allocation and costs
“Plan B” is to continue current agreement month-to-month or rates and charges by resolution (adopted May, 2013 and currently suspended)
Real Estate and Fishermen’s Terminal Strategic Plans to improve utilization of existing properties and identify future opportunities to support Port businesses
Evaluation of ways to reduce greenhouse gas emissions

6. Port Benefits From Strong Local Economy
KING COUNTY PER CAPITA INCOME
KING COUNTY
MULTIFAMILY BUILDING PERMITS

7. Revenue Bonds Secured by Pledge of Consolidated Port Revenue
2016 OPERATING REVENUE : $598 Million(1)
TOTAL NON-AIRPORT=22%
(NWSA + MARITIME + EDD & OTHER)
TOTAL AIRPORT=78% (AERONAUTICAL(2) +
NON-AERONAUTICAL)
2016 CAFR
Aeronautical revenues are based on full recovery of aeronautical costs

8. Port of Seattle Financial Performance ($ Million) (1)
2017
2015 (2)
2016
Budget (1)
Airport
Aeronautical
$ 226
$ 244
$ 275
Non-Aeronautical
197
221
227
Total Airport Revenue
$ 423
$ 465
$ 501
Airport Operating Expenses
(238)
(261)
(303)
Airport NOI Before Depreciation
$ 185
$ 204
$ 199
Non-Airport
Port's Share of NWSA
$ 61
$ 62
$ 47
Maritime 47 51 52
Economic Development & Other 21 20
Total Non-Airport Revenue
$ 130
$ 133
$ 119
Non-Airport Expenses
(74)
(64)
(82)
Non-Airport NOI Before Depreciation
$ 56
$ 69
$ 37
Total Port NOI Before Depreciation
$ 241
$ 273
$ 236
Key Non-Operating Resources
Tax Levy
$ 73
$ 72
G.O. Bond Debt Service
(30)
(40)
(37)
Passenger Facility Charges 79 86 89
Customer Facility Charges 24 25 26
Airport expenses driven by growth and security enhancements
NWSA revenue decline due to Terminal 5 vacancy and increase in operating expense (including depreciation)
Non-Airport expense increasing to accommodate maintenance costs and the Port’s mission-driven initiatives
Based on the 2017 budget
Restated to reflect re-organization and formation of the NWSA

9. SeaTac Airport Growth Continues in 2017
TOTAL ENPLANED PASSENGERS
(MILLIONS)
Enplanements grew by 37% from
Enplanements increased by 8% in 2016
Strong local economy is the foundation of growth
69% of passengers begin or end their flight in Seattle
Alaska and Delta are both growing and competing with each other

10. SeaTac is growing as an international gateway
Growth in international flights has been particularly strong, with airlines now serving 22 international routes
INTERNATIONAL ENPLANED PASSENGERS
(MILLIONS)
International enplanements grew 49% from
International enplanements increased 11% in 2016
New international hub created by Delta
Foreign flag carriers adding service to Seattle

11. Non-Airport Businesses
NWSA
Port has 50% share
All revenue to the Port is net of operating expenses (including depreciation)
MARITME
Includes cruise, grain export, and commercial and recreational marinas
High expenses result in modest net income
ECONOMIC DEVELOPMENT
Includes commercial and industrial properties and supports the Port’s economic development mission
Mission-driven programs result in negative net income but supported by the tax levy
Norwegian “Bliss,” newest of fleet, to homeport in Seattle 2018

12. PORT OF SEATTLE CAPITAL PLAN AND FUNDING
NWSA photo

13. $2,812 FIVE-YEAR CIP SPENDING ($ MILLION)
Port’s $2.8 Billion Five-Year Capital Improvement Plan is Dominated by the Airport
Of the Airport’s $2,401 million share of the CIP, nearly 46% is for the North Satellite Terminal and the International Arrivals Facility
The Port’s 50% share of the NWSA CIP is $109.2 million
Other projects include renewal and replacement of Maritime and real estate facilities, contingency, and pre-development of some vacant Port properties
Approximately 30% of the CIP is prospective, early in the scoping and approval process
Excludes potential capital investment associated with Sustainable Airport Master Plan, Real Estate Strategic Plan, and Port’s share of Terminal 5 modernization costs
$2,812 FIVE-YEAR CIP SPENDING ($ MILLION)

14. Port’s Five-Year Funding Plan Includes New Debt
The Port estimates funding $1,579 million of Airport projects with new debt
Funds-on-hand above Port’s target balances plus net income from operations provide significant funding
Tax levy funds certain Non-Airport projects in support of the Port’s economic development mission (assumes no change in tax levy during the funding period)
Grants and Passenger Facility Charges contribute to capital funding
11% funding gap for Non-Airport projects: $34 million of Non-Airport CIP is unfunded and likely will be addressed with reduction in contingency or deferral of projects
$2,778 TOTAL FUNDING PLAN
($ MILLION)

15. North Satellite Terminal Project
Collaboration with Alaska Airlines
Multiple projects to expand and improve the North Satellite Terminal
Total program costs estimated at $538 million
Estimated completion in 2021

16. International Arrivals Facility
Need for new facility is driven by growth in international traffic, shift to inter-continental wide-bodies, and connections to domestic flights that create peak time constraints
Total program estimated at $660 million
Estimated completion in 2020

17. Sustainable Airport Master Plan: Long-term Plan to Accommodate Growth
SeaTac PAX/acre is 10x DEN with limited expansion opportunities
Need for more gate capacity and landside access
SAMP feasibility review underway with FAA
Project costs and timing are too preliminary to be included in the current CIP
Options include sequencing and use of temporary hardstand terminal

18. 2017 Finance Initiatives
REVENUE BONDS
Planned new-money issue to fund Airport capital spending
Issuance timing likely Q3 2017
Monitoring refunding opportunities

19. Contact Information
Elizabeth Morrison Director, Corporate Finance Port of Seattle
Port’s website:
NWSA website:
All photos except where noted: Don Wilson

20. Appendix
APPENDIX

21. All of the Airport’s Revenues Have Some Element of Cost Recovery or Guarantee
AERONAUTICAL REVENUES
Aeronautical revenues are derived from cost recovery formulas in the SLOA III lease
Aeronautical cost recovery is based on operating and capital costs, which include debt service and amortized payments for cash-funded assets
All aeronautical costs are allocated to a cost center
Cost recovery model establishes a floor for aeronautical charges and effectively guarantees recovery of all airport costs
Excess revenue sharing better aligns Airport to airline interests
NON-AERONAUTICAL REVENUES
Non-aeronautical revenues have no cost recovery, but instead have a back-up guarantee from the airlines
Airport can charge airlines if airport-wide coverage drops below 1.25x