1. Airbus Alternative Fuels 27 July 2010 Targeting carbon-neutral aircraft operations New Zealand Presented by Paul Nash – Environmental Affairs Head of New Energy - Airbus New Zealand

2. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Eco-Efficient Aviation Aviation needs to flourish with reduced environmental impact Aviation is necessary for development Facts: 8% Global GDP 2% man made CO 2 emissions Over 40 years the focus on innovation has lead to  70% reduced aviation fuel consumption and related CO 2 emissions Targets: Carbon Neutral growth by 2020 50% CO 2 reductions by 2050 compared to 2005 New Zealand Sustainable Aviation Growth with Environmental targets Page 2

3. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Background: What Aviation is Proposing New Zealand 2005 2050 2020 100 Carbon Neutral Growth 2020 20302040 Minus 50% CO 2 by 2050 CO 2 2010 1. Technologies, Operations, ATM 2. Additional technology and 3. biofuels 4. Economic measures CO 2 Growth if we do nothing Four key strategic approaches to reducing CO2 emissions Page 3

4. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Background: What’s Required? New Zealand Meet all current safety requirements Same Aircraft performance considerations Same properties as Aviation Jet-fuel Kerosene  Consistent, thermally stable,  High energy content  Low freezing point, high flash point... Meets Jet-fuel specifications Any new fuel has to meet the above characteristics Page 4

5. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Background: Short/Medium Term Requirement New Zealand Use existing airport fuel storage Common aviation fuel distribution network With common piping and transport infrastructure / mechanisms Any alternative should be “drop-in” …..and mixable with fossil fuel A “Drop-in” solution is required Page 5

6. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Where we are: What are the Options? Non- Renewable (Fossil) Renewable Jet Fuel CTL GTL Hydrogenated Biomass Oils (HBO)  Low energy content per unit volume, Availability, Infrastructure Cryogenic Fuels Ethanol … Fame Hydrogenated Biomass BTL Liquefied Natural Gas Conventional (“Kerosene”) AlcoholsBio EstersSynthetic Fuels Fuels    10% lower energy content, -5°C Freeze point… 35% lower energy content Liquid Hydrogen TYPE BIO- JET FUELS * FAME =Fatty Acid Methyl Esters CTL, GTL & BTL =Coal, Gas or Biomass to Liquid New Zealand Not all options are suitable for aviation today Page 6

7. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Alternative Fuels illustrated: JET A-1 Ethanol FAME starts freezing (if no FL limitation) FAME (FL limited) xTL / HBO New Zealand (GRU) Guarulhos Intl, Sao Paulo, SP, BR JET A-1, xTL’s and HBO’s gives the performance as a drop-in Page 7

8. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Algae Jatropha SalicorniaCamelina Wood waste Yeast What are the alternative fuels? Potential sustainable feedstocks New Zealand Multi options in different locations Page 8

9. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. New Zealand Page 9 Airbus in the Fuels Approval Process APPROVAL Engine Safety, Performance and Durability (DEF STAN 91-91, ASTM D1655, MIL DTL 83133, MIL DTL 5624) Specification Properties Chemistry, Ground Handling & Safety, Materials compatibility, Electrical Properties, Bulk Physical & Performance Properties Fit For Purpose Properties Engine Hot Section, Aircraft Fuel System, Engine Combustor Rig Component Testing Engine Endurance Test Full Scale Engine Rig Test 2012 2013 2011 2010 2009 50% FT Fuel Approved HBO 50% 100% FT Fuel Approved 100% HBO Fuel Approved HBO Research Airbus supports the Def-Stan and ASTM Approval processes

10. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Airbus GTL* Flights New Zealand *GTL = Gas To Liquid Synthetic fuels work and are a precursor for Biofuels February 2008  Flight test  ~50% GTL  A380 on one out of the four engines October 2009  First ever commercial revenue flight  ~50% GTL  A340-600 all engines Page 10

11. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Focus on Value Chain Projects New Zealand Source: ATAG Biofuels Beginners Guide Airbus acting as a Catalyst for Biofuel commercialisation Projects that develop the Biofuel value chain in different regions  Farmers, Refiners, Investors, Airlines…. Closed loop process to reduce CO 2 emissions Develop projects that speed up sustainable commercialisation Page 11

12. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Value Chain Projects New Zealand A detailed implementation plan for 2nd generation bio-fuel Biofuel production / commercialisation A Biofuel investment strategy An advanced technology development program Ongoing market and strategic analysis Biofuel flight with TAM Quarter 4 2010 Using 50% blend of Brazilian Jatropha A320 CFMI Engines Aviation Biofuel commercialisation  Farmers, Refiners, Investors, Airlines…. Full sustainability pilot projects with the Roundtable on Sustainable Bio-fuels More projects under development Page 12

13. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Where we are: Messages, Issues... and Expectations Alternative Fuels work! Cross Industry Collaboration is essential Bio Fuel Commercialisation is 7 – 10 years away  too slow Aviation has limited solutions (Biofuels) Missing common sustainability analysis. Why invest? Other industries have alternatives New Zealand 30% Aviation Biofuels by 2030? Page 13

14. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. What’s Next? (Some) R&T already delivered, let’s deploy and implement  Common sustainability criteria  Lifecycle analysis More industry wide and Airbus R&T needed on e.g. algae  Also building on early industrial experience Government support through policy and incentives  Prioritisation of Energy types for different transport modes  Tax incentives / carbon credits New ZealandPage 14

15. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. What’s next? Cross industry approach  Aircraft / Engine Manufacturers to provide technical support for qualification  Airlines to commit to using and buying bio-fuels Investors needed!  Growing local economies in various world locations  Sustainability criteria  Joint ventures with airlines and stakeholders New Zealand Alternative fuels must be commercially viable… Page 15

16. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. New Zealand © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. This document and all information contained herein is the sole property of AIRBUS S.A.S.. No intellectual property rights are granted by the delivery of this document or the disclosure of its content. This document shall not be reproduced or disclosed to a third party without the express written consent of AIRBUS S.A.S. This document and its content shall not be used for any purpose other than that for which it is supplied. The statements made herein do not constitute an offer. They are based on the mentioned assumptions and are expressed in good faith. Where the supporting grounds for these statements are not shown, AIRBUS S.A.S. will be pleased to explain the basis thereof. AIRBUS, its logo, A300, A310, A318, A319, A320, A321, A330, A340, A350, A380, A400M are registered trademarks. Page 16

17. © AIRBUS S.A.S. All rights reserved. Confidential and proprietary document. Glossary GDPGross Domestic Product ATMAir Traffic Management ASTMAmerican Society for Testing and Materials Def-StanUK Defense Standard HBOHydrogenated Biomass Oils FTFisher Tropsch GTLGas To Liquid CTLCoal To Liquid BTLBiomass to Liquid RSBRoundtable on Sustainable Biofuels FAMEFatty Acid Methyl Esters ATAGAir Transport Action Group CO 2 Carbon Dioxide CFMICFM International (Engine joint venture between GE Aviation of the United States and Snecma of France) LCALife Cycle Analysis New ZealandPage 17