4. HSSE Performance Note: Rate of high risk SPAD’s is zero vs industry average 0.20

5. Financial Overview

7. HEx within BAA

8. Mode Share v EBITDA contribution 2009 – 2010 to be provided by PB £0.2M from bus licenses moving towards cost recovery £11.5M from concessions £0.4M from departure charges £45.5M from Heathrow Express and Heathrow Connect £14M from car park stays less than 10 hours £30M from all other car park income £0.1M direct though contributes to short stay parking revenue £0 £0

9. Finance Outlook – Q5

11. CY2010 F3 Forecast

13. Strategy Overview

15. EXTERNAL BUSINESS DEVELOPMENT Commercial Strategy Our strategy is to be the best at: Critical Success Factors Innovative technology Market understanding Customer behaviour IKAM Mobile sales interface Market understanding Innovative products e-commerce Sales tools Technology Consumer understanding Seamless proposition Brand engagement Brand communication Innovative NPD Technology Aggressive data capture Consumer profiling 121 Communication Market understanding New business opportunities Consumer media consumption Brand of choice Transfer market Leisure segmentation 2 nd markets BRAND DEVELOPMENT INTERNAL COMMERCIAL DEVELOPMENT CUSTOMER RELATIONSHIP MARKET EXCELLENCE COMMERCIAL AGILITY Maximise External Sales Potential Maximise Internal Commercial Revenue Consumer Understanding Consumer Acquisition Data and Commercial Analysis Market & consumer centric Objectives NFR £ Sales Revenue (T&G) Yield by channel Missed revenue 1 st time user penetration Channel sales (Pre-P) Channel sales (%) Yield by channel Product distribution Unique visitors Conversion rate Innovation Brand Health Brand Awareness Awards Modal shares Terminal penetration Dbase numbers Revenue High value customers Churn rate Annual value Automated revenue analysis Media consumption Vitality Index (= new business initiatives) Pax numbers Revenue EBITDA Terminal Penetration Modal shares KPI’s

16. Commercial Strategy 2010 Deliverables

18. Service Strategy 2010 Deliverables T4 Service Enhancement Business Partner Performance Maintain Ops Performance Customer Service Enhancement Attack Costs Insourcing / Pay Deal Service Strategy

19. Heathrow Express Continuous Improvement

20. Heathrow Express Continuous Improvement

21. Heathrow Connect Continuous Improvement

22. CREATING A CONSTRUCTIVE CULTURE THAT PEOPLE ADMIRE Critical Success Factors Managers and employees understand the benefits of a constructive culture and play an active role in creating it People processes are logical, fair, accessible and enable its creation Performance management is understood and implemented by managers, viewing it as their most important responsibility Development of managers is owned and driven by senior managers Development opportunities tailored and available to those who perform well Involvement of employees encourages participation and engagement People processes are logical, fair and relevant Rewards are fair and encourage excellent individual and team performance Line managers have excellent people management skills Unions and managers work in partnership at early stages on all relevant matters People are recognised for positive participation and contribution Communication channels support effective two way communication Employee relations support the growth of the business Culture/ employee surveys/ focus groups Employer brand - TBC Employer awards wins Calibre of new recruits Financial targets Operational performance targets Culture/ employee surveys/ focus groups Success of internal promotions/ transfers/ secondments Employee turnover trends Absence trends Retention of high performing employees Ease of change implementation - TBC Culture/ employee surveys/ focus groups Disciplinary/grievance trends Employee turnover trends Absence trends CREATING & DEVELOPING HIGH PERFORMING PEOPLE AND TEAMS DEVELOPING EXCELLENT EMPLOYEE RELATIONS HR Strategy KPI’s

23. OCI Survey – Target Culture Same employees surveyed March 2007 Constructive Culture Styles Humanistic-Encouraging: Members are expected to be supportive, constructive and open to influence in dealing with others. Affiliative: Members are expected to be friendly, open and sensitive to the satisfaction of the work group. Achievement: Members are expected to set challenging but realistic goals and solve problems effectively. Self-actualising: Members are expected to gain enjoyment from their work and produce high-quality products/ services.

24. Key activities CREATING A CONSTRUCTIVE CULTURE THAT PEOPLE ADMIRE CREATING & DEVELOPING HIGH PERFORMING PEOPLE AND TEAMS DEVELOPING EXCELLENT EMPLOYEE RELATIONS Corporate welcome programme Refresh & embed values Culture survey & action planning Management development programme Performance management skills development High performer recognition scheme Corporate welcome programme Management development programme Performance management skills development High performer recognition scheme Elearning development Development two way feedback & pulse surveys using extranet Management development programme Performance management skills development

25. Finance Strategy

26. Performance Systems & Top Line KPI’s

29. Heathrow Express end 2012 HR Constructive Culture enhances business performance Pay deal for the Olympics Improved attendance levels More internal promotions Commercial HAL modal share14% Inner London modal 34% Passenger 5.6m Technology innovator Brand re-fresh/comms/trains Service Proposition Mobile sales 200k new pax Increased T4 share >10% Data and decision making at SM/SPMS level Customer service awards Modernised stations & trains Convenient onward travel PPM above 95% Reliability above 95% QSM above 90% Finance Exceed Q5 EBITDA

30. Management of Business Partners

31. Approach to Business Partners Management & Review Bench marking Risk & Value Commercial Strategy World Class Performance

34. Rail Infrastructure: Track maintenance cost per km against OPPPA benchmark comparison Year – 2007

35. Rolling Stock: Maintenance cost per car-km against OPPPA benchmark comparison Year – 2007

36. Commercial metrics - Cost: OpEx per train-km (2006) Commercial metrics - Cost: OpEX per passenger-km (2006) [£ per train km] [£ per passenger km]

37. Commercial Metrics – Revenue: Passenger revenue per train km (2006) Commercial Metrics - Revenue: Passenger revenue per passenger km (2006) [£ per train km] [£ per passenger km]

38. Commercial Metrics: Revenue Operating profit margin % (EBITDA/Turnover) (2006) [Percentage]

39. Commercial Metrics – Cost: OpEX per passenger km & Passenger revenue per passenger km (2006) [£ per passenger km]

40. Asks from NC

42. End

44. Brand Development History 1991 1996 1998 2001 2007 2008 2009 Brand Design by Wolff Olins BAA granted authorisation to construct the Heathrow Express. Order for five new carriages, costing a total of £6.5 million. Official launch by Prime Minister Tony Blair World first in-tunnel WiFi Hotspot and mobile phone service introduced Terminal 5, e-ticketing and the biggest multimedia campaign to date: ‘The Airport is closer than you think” Flight Information Display Screens and Airline Self Service Check-In at Paddington

46. Financial and Market Overview

50. Organisation and Strategy

51. Senior Management Team (and Heads of Function)

52. Brand Identity

56. Top Line KPI’s & Performance Systems

59. Heathrow Express Continuous Improvement

60. Heathrow Connect Continuous Improvement

61. End

62. Service Strategy Fastest journey between Heathrow & Central London Highest Certainty Best Service Best Quality Most Convenient

65. OCI Survey – Target Culture Same employees surveyed March 2007 Constructive Culture Styles Humanistic-Encouraging: Members are expected to be supportive, constructive and open to influence in dealing with others. Affiliative: Members are expected to be friendly, open and sensitive to the satisfaction of the work group. Achievement: Members are expected to set challenging but realistic goals and solve problems effectively. Self-actualising: Members are expected to gain enjoyment from their work and produce high-quality products/ services.