1. 2005 Performance Report OS February 28, 2006 ITEM NO. 6b Supp-1 DATE OF MEETING 2/28/06

2. Port of Seattle Year End Results 20052 Port Wide Financial Results

3. Port of Seattle Year End Results 20053 Port Wide Income Results

4. Port of Seattle Year End Results 20054 Port Wide 2005 Capital Spending

5. 2005 Performance Report Aviation Division

6. Port of Seattle Year End Results 20056 Aviation Business Highlights Passenger level hit 29.3 million, +1.7% over 2004 –Landed weight down 3.6%; equals 88% of 2000 –Operations down 4.9%; equals 77% of 2000 –Load factor at 79.1% vs. 75% in 2004 Non-aeronautical NOI +$18.3M vs. 2004 Reduced Airline costs –Cost per enplanement (CPE) $11.10 vs. $11.45 in budget –Revenue sharing: $23.6 million, up $5.9 million over 2004 –Reduced forecasted 2009 CPE to $14.15 Reached agreement on new 7-year airline agreement Major project milestones: –Opened CTE –Third Runway Project on schedule and budget

7. Port of Seattle Year End Results 20057 Goals & Strategic Issues Progress Develop and Maintain Community Support –Completed ILA negotiations with city of SeaTac –Modified 55-acre development agreement with city of SeaTac –Established ILA with City of Des Moines –Regular meetings of Highline Forum Extraordinary NW Customer Experience –Opened Central Terminal –Enhanced international arrivals assistance –Relocated hourly parking in garage –Installed new airport directories

8. Port of Seattle Year End Results 20058 Goals & Strategic Issues Progress High Density Development –Phase I Program on schedule; 79% completion –Refined Comprehensive Development Program and completed environmental process –Completed funding strategy for SR518 3 rd lane –Established effective design and construction collaboration with Sound Transit –Restarted rental car facility project –Delays in completion of baggage systems C-60 is 85% complete (goal was 100%) C-1 is 49% complete (goal was 60%)

9. Port of Seattle Year End Results 20059 Goals & Strategic Issues Progress High Performance Workplace –Implemented employee development initiative focused on enhanced job proficiency and succession preparation Special assignment pilot completed Development planning education completed –Diversity awareness milestones completed –Eliminated backlog of labor contract negotiations –Continued labor relations education series: 9 labor relations sessions attended by 227 employees 9 collective bargaining sessions attended by 127 –Workplace Safety: achieved lowest incident rate and lost work days since measurements began

10. Port of Seattle Year End Results 200510 Goals & Strategic Issues Progress Maximize Financial Performance –Airline CPE - 3.1% under budget –Non-airline revenues per enplanement – exceeded budget by 6% –Opened new concessions in Central Terminal –Implemented new financing strategy: New intermediate lien: –Lower debt service coverage –Structure facilitates PFC offset Increased liquidity level

11. Port of Seattle Year End Results 200511 Enplanements 2000-2005

12. Port of Seattle Year End Results 200512 Aviation Q4 Operating Results

13. Port of Seattle Year End Results 200513 Aviation Key Indicators

14. Port of Seattle Year End Results 200514 Aviation Expense Variance Drivers

15. Port of Seattle Year End Results 200515 Capital Spending 1999-2005 $ in millions

16. Port of Seattle Year End Results 200516 Aviation Capital Budget

17. 2005 Performance Report Seaport Division

18. Seaport Division Overview 2002 - 2005

19. Port of Seattle Year End Results 200519 Seaport in 2002 NOI in 2002 was $13.2M Container volume flat at 1.439M TEU’s (3 year avg annual growth rate negative (1.2)%) Nearly 200 vacant acres –Consolidation in containers – SE harbor vacant –Car Shipper (DAS) and Hasbro departure –Rainier Cold Storage earthquake damage Cruise 1 berth, 3 homeport ships and 245,000 passengers Impacts of 9/11 and Nisqually earthquake Set a goal of reaching $34M NOI by 2005

20. Port of Seattle Year End Results 200520 Lease of Vacant Acres 2003-2005 T46 – Completed TTI/Hanjin Expansion 18 acres T30 – 2 berth cruise facility 25 acres T25/28 – Redevelop into container facility for SSAT 32 Acres T25 – SCS Refrigerated Services, LLC 15 Acres T106 – Container storage yard for SSAT 15 Acres T5 – Use of option area by Eagle Marine 19 Acres (month to month) T91 – Carnitech facility 2 Acres T115 – 30 Year Lease with Northland (property was occupied by other tenants prior to this transaction)

21. Port of Seattle Year End Results 200521 Seaport 2002-2005 2005 container volume at 2.088M TEU’s (3 year avg annual growth rate of 13.2%) Leased 126 Acres to maritime and industrial tenants Cruise 3 berths, 8 homeport ships and 687,000 passengers

22. Port of Seattle Year End Results 200522 Seaport 2002-2005 Carried out key transportation and environmental initiatives Reduced expenses Staff reduced from 217 to 169 not including warehouse NOI in 2005 is $40.4M: 18.8% above goal and 3 times 2002 NOI

23. 2005 Performance Report POS

24. Port of Seattle Year End Results 200524 Seaport Business Goals Provide Compelling Value and Asset Utilization TEU’s: Up 17.6% over 2004 to 2.088 million. Full inbound up 19.2% and full outbound up 22.1%. Grain: Up 30% over 2004 to 5.0 million metric tons. Cruise:169 calls and 687,000 passengers.

25. Port of Seattle Year End Results 200525 Seaport Business Goals Provide Compelling Value and Asset Utilization Vacant Property : 14 additional acres leased. Occupancy Rates: commercial property at 91% occupancy, below target of 96% but above market average of 81%. Industrial buildings and warehouses occupancy 91%, market 96%. Marina Occupancy : two of five marinas exceeded occupancy targets: SBM 93% vs. goal 90%; FT 89% vs. goal 85%; HIM 98% vs. goal 99%; BHM 80% vs. goal 90%; MIC 73% vs. goal 80%.

26. Port of Seattle Year End Results 200526 Seaport Community Goals Relationships: 36 speaking engagements. No regulatory violations. Air emissions inventory 12/06. Regional Transportation: Viaduct south end design better accommodating T-46 access. 519 discussions restarted. East Marginal Way work on track: design progressing, offers made to property owners, detailed MOA with City in progress. Security: 98% of the tasks identified in 2004 have been completed. Projects on track. High Performance: 48% of performance reviews completed one week prior to anniversary date, 61% completed by anniversary date. Safety index at 98.6% as of Q3.

27. Seaport Division Operating Results

28. Seaport Division Key Variances Revenue Detail ($’s in Millions) Business Unit - Revenue Variance to Budget B(W) Containers$3.7 Docks$3.0 Cruise$.7 Harbor Services$.4 Real Estate$(.6) Security$(2.8) Total$4.4

29. Seaport Division Key Variances Expense Detail ($’s in Millions) Expense Variance to Budget B(W) Security – offset by revenues$2.2 Unemployment Reserves$1.2 Environmental Reserve$(2.6) Maintenance$(.7) Utilities$.5 All Other$1.3 Total Expense$1.9

30. Port of Seattle Year End Results 200530 Seaport Business Groups NOI Before Depreciation ($’s in Millions) Actual NOI Variance to Budget B(W) Cargo and Cruise$37.4$8.4 Harbor Services$1.8$.7 Real Estate$2.5$(2.2) Security$(1.3)$(.6) Total Seaport$40.4$6.3

31. Port of Seattle Year End Results 200531 Seaport Capital 2005 $’s in Millions Plan of Finance Approved Budget ActualVariance to Budget Act. as % of App. Budget $74.8$72.0$87.6$(15.6)122%

32. Port of Seattle Year End Results 200532 Seaport Capital Projects 2005 Spending was 122% of the approved budget for the year. Projects not in Plan of Finance were authorized by Commission: –Terminal 25 development for Matson $15 million. –Terminal 91 Berth C&D and utility upgrade planning $8 million. Shilshole Bay Marina spending was $13 million in excess of Approved Budget. Approved Budget was not adjusted to reflect shorter project time frame. Actual spending in line with Plan of Finance. Projects less than Approved Budget due to delays: –Terminal 5 Admin Building delayed due to weather $2.6 million. –Terminal 115 Dock Reconstruction was delayed due to permitting issues $5 million. –Security due to delays on Round II projects for Tacoma and Everett, $4.3 million below budget.

33. Port of Seattle Year End Results 200533 Seaport Recent Results NOI $40.4M exceeding $34M NOI target and triple 2002 NOI. 17.6% Container growth in 2005. 22% growth in Cruise passengers in 2005. Grain volumes up 30% over 2004. Aggressive capital project milestones met. Commercial building occupancy at 92%. Received Envirostar awards at 3 Marinas and Maintenance.

34. Seaport Division Overview Excluding Security Grants ($’s in Millions)

35. 2005 Performance Report POS

36. 2005 Fourth Quarter Performance Report Economic Development Division

37. Port of Seattle Year End Results 200537 Economic Development Division Today’s Presentation Introduction Business Goals, Progress & Highlights for: –Real Estate Development –Regional Transportation –Economic, Business and Trade Development 2005 Operating Results 2005 Capital Program & Results

38. Port of Seattle Year End Results 200538 Real Estate Development 2005 Business Goals 1)Advance the planning and development of certain assets the Port currently owns (e.g. North Bay) 2)Identify and respond to new opportunities and projects 3)Seek to establish a center of expertise within the Port for real estate planning and development Create regional economic vitality through three real estate-related initiatives:

39. Port of Seattle Year End Results 200539 Real Estate Development Progress & Business Highlights –North Bay Project Selected preferred development alternative Published final Environmental Impact Statement Integrated planning with Pier 91 improvements Continued outreach to community Acquired Tsubota Steel site

40. Port of Seattle Year End Results 200540 Real Estate Development Progress & Business Highlights Central Waterfront Concept Plan Participated in Waterfront Partners Group Colman Dock Expansion Monitored planning efforts by WSDOT and City of Seattle Appraising Pier 48 Waterfront Streetcar Extension Completed joint feasibility study

41. Port of Seattle Year End Results 200541 Regional Transportation 2005 Business Goals Be a Catalyst for Regional Transportation Solutions 1)Ensure access to existing and future Port facilities 2)Enhance freight mobility 3)Promote regional economic competitiveness

42. Port of Seattle Year End Results 200542 Regional Transportation Progress & Business Highlights –Project Planning & Activities: Viaduct/Seawall Replacement SR518 East Marginal Way, South Downtown Rail Corridor/SR519 Magnolia Bridge, Mercer Corridor –Defeat of I-912 maintained state funding –Developed federal and state 2006 legislative strategies

43. Port of Seattle Year End Results 200543 Economic, Business & Trade Development Business Goals Create regional economic vitality by proactively seeking international and regional trade related opportunities 1)Regional Economic Development 2)International Trade & Business Development 3)New Business Opportunities

44. Port of Seattle Year End Results 200544 Economic, Business & Trade Development Progress & Business Highlights Regional Economic Development Formulation and implementation of Prosperity Partnership’s “Regional Economic Development Strategies for Central Puget Sound” Action Strategy Groups International Trade and Business Development Port Asia Offices (Japan, South Korea, Shanghai, Hong Kong and Singapore) Strategy for identifying trade leads and Foreign Direct Investment leads, and Transportation and Logistics intelligence gathering and interpretation China Initiative

45. Port of Seattle Year End Results 200545 Economic, Business & Trade Development Progress & Business Highlights Developing New Business Opportunities Inland Northwest Project Cruise business MOU with Shanghai Int’l Ports Group Foreign Manufacturing Company site selection

46. Port of Seattle Year End Results 200546 Economic Development Division Operating Results 20042005 2005 Bud Var Actual Budget $% Expenses: Direct Op & Maint Exp $ 2,8722,4083,01260420.1% Divisional Allocations0210(21) Corporate Allocations541511488(23)4.7% Total Expenses3,4132,9403,50056016.0% NOI Before Depreciation(3,413)(2,940)(3,500)303-16.0% Depreciation9310872(36)-49.0% NOI After Depreciation(3,506)(3,048)(3,572)524-14.7%

47. Port of Seattle Year End Results 200547 Capital Program 2005 SR 518 ("Gov't Expense" Project) North BayTsubotaTotal R.E.Reg. Trans. 2005 Plan of Finance1.50.01.5 2005 Approved Budget1.80.01.8 2005 Actuals2.56.18.6 Variance (0.7)(6.1)(6.8) Authorization7.36.113.45.0 2005 Spending2.56.18.61.7 Previous Spending4.00.04.00.0 Total Spending6.56.112.61.7 Remaining Budget0.80.00.83.3

48. 2005 Performance Report Corporate Professional & Technical Services

49. Port of Seattle Year End Results 200549 Corporate Highlights Corporate performance for the year 2005 was $3.7 million or 6.3% unfavorable compared to the approved budget. –$1.9 million for ICT restructuring & Systems Remediation –$1.9 million in environmental reserves Commission meetings accessible via web-site Environmental Services reached agreement on air emissions inventory ICT completed restructuring

50. Port of Seattle Year End Results 200550 Corporate Indicators Workers Compensation costs decreased 19% 1019 employees participated in learning calendar classes Processed 7,256 employment applications compared to 5,155 for 2004, up 40% Electrical consumption decreased by 11% Saved $6,684,763 PV (9.97%) on bond Refunding

51. Port of Seattle Year End Results 200551 Corporate Professional and Technical Services Operating Results

52. Port of Seattle Year End Results 200552 Small Business Initiative Highlights May 2003 Port Commission adopted the Small Business Initiative Small Business Roster (SBR) developed for easy access to register with the Port as qualified small business Port set a 10% target for purchases of Goods and services from qualified small business Regional Contracting Forum: The Port was one of the lead agencies in planning and organizing of this forum Northwest Minority Showcase: The port hosted a booth in which major corporations, minority business, and public agencies from across the country came to develop business relationships and attend workshops

53. Port of Seattle Year End Results 200553 Small Business Initiative

54. 2005 Performance Report POS