ANNUAL SHAREHOLDER REVIEW2013

Profit before taxation was $256 million, an increase of 172% on the previous year. Net profit after taxation was $182 million. This is our best result in five years, and it is pleasing to note that we have comfortably exceeded our initial guidance of more than doubling last year’s profit figure. Operating cash flow was a record $750 million, reflecting the strength and quality of the result.

A number of factors have contributed to this, including the benefits of a modern, more fuel efficient fleet and an optimised global network with fewer underperforming routes. All parts of the network contributed positively, which hasn’t always been the case.

Following a period of disappointing results, we are now making good progress towards our goal of delivering sustainably improved returns to shareholders. Having reviewed the current trading environment and the airline’s financial position, the Board has declared a fully imputed final dividend of 5.0 cents per share.

After nearly 12 years as your Chairman and this being my last annual report, it is timely to reflect on some of the events and changes that have driven the business over that time.

The collapse of Ansett Australia and the events of 9/11 provided a challenging environment in which to start rebuilding Air New Zealand in late 2001. Since that time,

the airline has benefited from outstanding leadership, embracing a culture of innovation and calculated risk taking.

There are numerous examples of Air New Zealand’s leading innovations, including creative safety videos, the acclaimed Skycouch and a revolutionary new airport experience using self check kiosks and bag drops for customers.

The airline today bears little resemblance to that of a decade ago. Fuel prices are at levels that would have been unimaginable in 2001, and yet Air New Zealand has remained consistently profitable through a range of adverse economic conditions and global events. It is one of very few airlines globally to maintain an investment grade credit rating.

Having the Crown as a majority shareholder has given the airline the stable ownership dynamic required to successfully execute this turnaround story. The New Zealand government has received in excess of $500 million in dividends during this time, and the fact that the airline is being held up as a model for the mixed ownership programme is testament to how far we’ve come from the dark days of 2001.

When Tony Carter assumes the Chairmanship after this year’s Annual Shareholder Meeting on 27 September, shareholders and customers alike can be confident that the progress will continue. Tony is an experienced and successful business leader with a great understanding of competitive markets and the importance of customer focus.

It has been a privilege for me to lead this iconic company. We’ve made great progress on many fronts and our people can be proud of what they have achieved. Despite all the industry pressures, we are again generating acceptable shareholder returns. The challenge for the new Board and management is to further improve on that momentum – I’m confident that they can.

I wish Tony, the Board and the Air New Zealand family all the very best in the next stage of the journey.

John Palmer – CHAIRMAN

Air New Zealand Annual Shareholder Review 2013 3Air New Zealand Annual Shareholder Review 20132 LEFT TO RIGHT: Rob Jager, Paul Bingham, Dr Jim Fox, Tony Carter – DEPUTY CHAIRMAN, Jan Dawson and Roger France

contents 2 > Chairman’s report

4 > CEO’s report

8 > Executive team

12 > Financial commentary

13 > Change in profitability

14 > Financial summaryCover image © Airbus S.A.S 2013

Photo by Exm Company

THE 2013 FINANCIAL YEAR WAS ONE OF SIGNIFICANT PROGRESS FOR AIR NEW ZEALAND.

John Palmer – CHAIRMAN

Significant

progress

The fortunes of Air New Zealand and our nation are inextricably linked.We play a critical role in connecting families, friends, tourists and businesses to, from and within New Zealand. I am incredibly proud of the efforts of our 11,000 people in delivering a much improved result in the 2013 financial year.

Air New Zealanders have a commitment to customer care, a resilience, spirit and attitude that are the envy of our competitors. They also have a wonderful maturity that was abundant as I transitioned into my first year as Chief Executive Officer and I would like to take this opportunity to thank all Air New Zealanders for the way they have embraced our Go Beyond strategy and the organisational structure that supports it.

I would also like to acknowledge the outstanding contribution of my Executive team, which is the best I have worked with in my career. Together we have a resolute focus on success and growth to build on the wonderful work that has gone in over the past decade.

One of my key priorities when I started on 1 January this year was to rapidly build strong relationships with key stakeholders who influence the fortunes of Air New Zealand. These include our local tourism industry and trade partners, airports, alliance partners, government officials and the investment community.

Wherever I go there is incredible interest in Air New Zealand and our company is held in high regard.

Firing on all

Air New Zealand Annual Shareholder Review 2013 5Air New Zealand Annual Shareholder Review 20134

Christopher Luxon – CHIEF EXECUTIVE OFFICER

Our Tasman and Pacific Islands routes continue to go from strength to strength due in part to our Seats to Suit fare structure, which allows us to offer a range of competitive fares and service levels within the same aircraft.

Along with our alliance partner Virgin Australia we are committed to maintaining a strong competitive position on the Tasman and believe the alliance is delivering a superior offering for our customers with access to 35 domestic Australian ports.

In July this year the Australian Competition and Consumer Commission issued its draft decision to reauthorise our alliance. We will continue to develop and enhance cooperation between our two airlines.

We have increased our economic ownership interest in Virgin Australia to 22.99%. Our strategy behind this investment is simple – it gives us an efficient, cost effective exposure to the growing domestic Australian market, as well as reinforcing our alliance relationship.

While Virgin Australia’s recent financial performance has been disappointing, it is making great progress in rebranding as an airline which appeals to all market segments, including corporate customers.

Large investments have been made as Virgin Australia goes through this critical growth phase, and we are confident of its success going forward.

Clearly, we are not alone in that view, with both Singapore Airlines and Etihad Airways making significant investments, forming a group of strong and supportive shareholders.

The biggest change has been the turnaround of our International long haul network, which is now profitable and positioned for growth. During the past year we have continued to see improvement in both demand and yields, and we are acutely focused on making sure we have our network optimised to market dynamics.

The Pacific Rim offers us significant growth opportunities, and it is pleasing to report that we are seeing consistent traffic increases on our routes. While China in particular will see strong travel growth to New Zealand, we are actively exploring other opportunities in Asia and expect to be in a position to make growth related announcements during the coming year.

Our Domestic network is in good shape. We have added further capacity during the past year and seen demand continue to increase. Our turboprop network throughout New Zealand is one of the best in the world, and we are focused on keeping it that way. Our new ATR72-600 turboprop aircraft are steadily entering service, further boosting capacity on these routes.

At the Paris airshow in June of this year we took delivery of our first new sharklet equipped Airbus A320. The sharklet is essentially an extension of the aircraft’s main wing, improving performance while reducing fuel burn. The efficiency gains of this aircraft are tangible, as is the improved customer experience of a wider, quieter cabin.

IN THE COMING YEARS, THE AIRBUS A320 WILL FORM THE BACKBONE OF OUR DOMESTIC NETWORK, REPLACING THE OLDER GENERATION BOEING 737-300 AND REDUCING OUR COST BASE AS THEY ARRIVE.

cylinders

UNIT COST

improved

3.0%LOAD

FACTORincreased to

83.6%

YIELDup to

13.6cper RPK

OPERATING REVENUE

up

3.0%

CAPACITY (ASKs)

up

1.7%

DURING 2014 WE WILL BEGIN REFURBISHING OUR BOEING 777-200ER FLEET. THIS REPRESENTS A SIGNIFICANT INVESTMENT FOR AIR NEW ZEALAND.

Air New Zealand Annual Shareholder Review 2013 7

be worthwhile and we are looking forward to getting this aircraft into service around the middle of 2014.

Our Cargo network continues to perform well, achieving solid revenue growth in a challenging industry. During the year the team have been focused on building a wider network with interline partners, providing greater connectivity for our exporters and importers.

Our Airpoints programme continued to grow during the year, up 17% to more than 1.4 million members. Our customer engagement also continues to improve, with 20% more customers now earning Airpoints with our retail partners, and further growth in activations of OneSmart cards.

We have been reviewing our customer loyalty programme and engaging with customers to better understand what is working and what is not. In July this year, in direct response to concerns raised, the first set of changes to upgrades and seat selection were made.

We are continuing to modernise our wide body fleet. The new Boeing 777-300ERs are performing very well, offering significant efficiency improvements over the retiring Boeing 747-400s. We have two more of these aircraft due to be delivered in the second half of the 2014 calendar year.

During 2014 we will begin refurbishing our Boeing 777-200ER fleet. This is a significant investment for us, and will see a total of eight aircraft upgraded over a 12 month period. Our inflight product will then be better aligned across both B777 variants that we operate, including entertainment systems, premium cabins and our award winning Skycouch.

Our first Boeing 787-9 is currently being assembled in the United States and every indication is that the programme is progressing to schedule. In the 787, the engineers at Boeing have designed an incredibly innovative new plane that will take operating economics and passenger comfort to new levels. While the wait has been long, it will

The improvements were met with universally positive feedback. You can expect to see more of the results from this review flow through into changes in the coming months.

We are actively working to continually improve the consistency and quality of our customer experience. Air New Zealand already enjoys a strong reputation for customer service, but we can further improve. Our goal is to have a globally aligned brand where we are delivering a consistent customer experience across the entire customer journey.

Several of our lounges will be undergoing upgrades during the coming year, and a key highlight will be the opening of the new lounge in the Tom Bradley International Terminal in Los Angeles.

Once the terminal transition is complete, our premium customers will be able to relax in a brand new Star Alliance lounge, which Air New Zealand is proud to have been selected to both design and manage. This stunning new lounge is three times larger than our current lounge in Los Angeles, and will feature a unique open air terrace overlooking the runway.

Key elements of our $250 million profit improvement programme are now in place and set to deliver as planned. Our focus on improvement is relentless, and

over the coming years we will continue identifying ways to materially increase our efficiency, effectiveness and ultimately our profitability.

We are focused on further improving on this result in the 2014 financial year. Based on our forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging.

None of this is possible however, without great people. Air New Zealand is a people driven business, and in the following pages you will hear from the members of my Executive team who will describe what is important in each of their respective areas.

We are more committed than ever to being the best at what we do.

Christopher Luxon – CHIEF EXECUTIVE OFFICER

EarliEr this yEar wE unvEilEd a bold nEw aircraft livEry for thE

air nEw ZEaland flEEt.

thE livEry is distinctivE yEt has a modErn EdgE that wE bEliEvE will inspirE a sEnsE

of pridE for nEw ZEalandErs.

as you can sEE, thE livEry fEaturEs thE iconic nEw ZEaland fErn mark – thE usE of which is managEd by tourism nEw ZEaland and nEw ZEaland tradE and EntErprisE.

thE nEw look livEry will bE progrEssivEly rollEd out across thE air nEw ZEaland flEEt from latEr this yEar.

Air New Zealand Annual Shareholder Review 20136

Air New Zealand Annual Shareholder Review 2013 9Air New Zealand Annual Shareholder Review 20138

Bruce Parton >CHIEF OPERATIONS OFFICER

This is a tough industry to succeed in.

There are too many examples of airlines failing because they did not focus enough on their cost base.

If we are to remain competitive and grow as an airline, we must be relentless in pursuing continuous improvement across all levels of our organisation.

We continue to invest in technology, upgrading the core systems which power the day-to-day operations of the airline. You can see this in our self check kiosks, which we are now rolling out in the international environment, including at a number of overseas airports.

Mobile technology means that we can communicate more effectively with both our customers and employees, enabling us to better manage disrupt situations.

We are working to more closely align our product specifications with demand, giving customers more of the things they actually want to pay for.

Norm Thompson ONZM >DEPUTY CHIEF ExECUTIVE OFFICER & CHIEF SALES OFFICER

We are focused on improving our execution in existing markets, as well as identifying new growth opportunities to pursue.

The online channels have been delivering great results, with significant growth in revenue during the past year.

Our indirect distribution channels through our partners in the travel industry are as important as ever, and we are committed to further developing these.

The crucial inbound leisure market segment is showing increasing signs of recovery, particularly in our key Pacific Rim markets.

With our valued industry partners including Tourism New Zealand, we are working to maximise opportunities to further promote New Zealand as a destination.

< Rob McDonald CHIEF FINANCIAL OFFICER

Air New Zealand is in great financial shape.

We are well positioned with strong liquidity and low gearing as we head into a phase of higher capital expenditure over coming years to modernise and grow our fleet.

With this newer fleet comes superior operating economics, bringing our cost base down and delivering an outstanding customer experience.

We have fully embraced mobile as an effective means of connecting with our customers in a convenient and spontaneous manner.

Our popular mPass app is being updated to include domestic bookings, but this is just the beginning. Expect big things from us in the mobile space later this year.

Our Executive

team

Mike Tod >CHIEF MARKETING & CUSTOMER OFFICER

The foundation has been laid to see Air New Zealand become an even more customer centric airline that is a benchmark across industries.

We are consistently delivering a customer experience that is among the best in the world, and our people are critical in enabling us to achieve this.

We are listening to our customers more than ever before, and turning off what they don’t want and dialling up what they value.

We have step changed our capabilities in areas such as customer insights, giving us much improved visibility on who our customers are and what they want.

Our brand is known for innovation and creativity, and is one of very few New Zealand brands to be acknowledged on the world stage.

But we are not satisfied with this. We have a restless ambition to see Air New Zealand recognised amongst the world’s best.

Air New Zealand Annual Shareholder Review 201310 Air New Zealand Annual Shareholder Review 2013 11

< Stephen JonesCHIEF STRATEGY, NETWORKS & ALLIANCES OFFICER

Air New Zealand’s performance is built on good strategy, getting the big decisions right and executing the plan; which markets to serve, which partners to work with and which aircraft to deploy.

Our partnership with Virgin Australia on the Tasman has created a compelling customer proposition in this critical market, and our growth into international markets is now clearly focused on the Pacific Rim.

We have moved decisively in suspending poor performing routes and redeploying capacity into growth markets.

Our alliance with Cathay Pacific on Hong Kong and the increase to daily services on Shanghai demonstrate our commitment to China.

< Captain David MorganCHIEF FLIGHT OPERATIONS & SAFETY OFFICER

The safety of our customers and employees is paramount and non-negotiable.

Every day we deliver world class flight operations expertise that transports customers and cargo to 53

destinations in New Zealand and around the world.

This expertise also allows us to seek out and deliver new and innovative ways to reduce our carbon footprint and impact on the

environment across the 200,000 flights we operate annually.

Air New Zealand takes social responsibility seriously, and as such we are actively pursuing a new world-class sustainability framework which will launch this financial year.

Lorraine Murphy >CHIEF PEOPLE OFFICER

We are driving a high performance culture by attracting, retaining and developing great people, and leveraging the power of one Air New Zealand working together.

We want to be known for developing world class leaders who make a strong and enduring imprint on our organisation and our nation.

With this in mind, one of our focus areas over the coming year will be enhancing our talent management framework, of which a key element is workplace diversity.

We are developing our capability in all of the markets we serve. Air New Zealanders collectively speak more than 40 languages.

This, along with staff who understand the numerous cultures of our customers and partners, helps us make better decisions as an organisation and better relate to those from all walks of life.

revenueOperating revenue increased by $135 million to $4.6 billion, up 3.0 percent on the previous year. Excluding the negative impact of foreign exchange movement, operating revenue was up 4.0 percent on the previous year.

Passenger revenue increased by $131 million or 3.6 percent. This can be attributed to increased capacity (available seat kilometres) of 1.7 percent, an improvement in load factors of 0.8 percentage points to 83.6 percent, and stronger yields. The New Zealand dollar remained strong against major trading currencies during the period, which reduced New Zealand dollar passenger revenue by $40 million.

International long haul yields were up 4.3 percent on a 1.0 percent reduction in capacity as the network was further optimised with exits from the underperforming Hong Kong-London and Auckland-Beijing services. Demand was up 0.9 percent, and load factor increased 1.6 percentage points to 84.0 percent.

Capacity increased 6.0 percent on Tasman and Pacific Islands routes, driven by the introduction of B777-200 aircraft on the Auckland-Perth and Auckland-Honolulu services, as well as the new seasonal Auckland-Bali service. Demand was up 5.1 percent, with load factor decreasing 0.7 of a percentage point to 83.5 percent. Yield on Tasman and Pacific Islands routes improved 1.9 percent during the period.

Capacity on Domestic routes increased 2.8 percent, due to the introduction of new A320 aircraft replacing the smaller B737-300, and additional ATR72-600 aircraft into service. Load factor improved 1.1 percentage points to 82.6 percent. Yield reduced 5.3 percent, a result of pricing reductions to stimulate demand, which increased 4.2 percent during the period.

Cargo revenue for the year was $301 million, an improvement of $3 million or 1.0 percent. Excluding the impact of foreign exchange, Cargo revenue was $8 million or 2.7 percent higher than last year. This result was driven by a 2.0 percent increase in volume (revenue tonne kilometres) as well as yield growth of 0.7 percent. Contract Services revenue was $313 million for the period down 0.9 percent, while Other revenue increased by $4 million or 1.7 percent to $239 million with a continued focus on ancillary revenue opportunities.

expensesOperating expenditure decreased $48 million or 1.3 percent. Excluding foreign exchange related movements and net gains on non-hedge accounted and ineffective derivatives, operating expenditure increased 1.2 percent on the previous year, on a 1.7 increase in capacity and a 2.7 percent increase in demand.

Unit costs reduced by 3.0 percent with improved operating efficiencies combined with reduced hedging losses.

Labour costs were $1,069 million for the year, an increase of $19 million or 1.8 percent. Rate increases were offset by productivity improvements as well as headcount reductions.

Fuel costs were down $15 million due to reduced prices and improved fleet efficiencies, partially offset by increased flying with capacity (available seat kilometres) increasing by 1.7 percent. The average US dollar into plane cost excluding hedge timing was 1.6 percent lower than the previous year. Fuel also benefited from a stronger New Zealand dollar during the period.

Air New Zealand undertakes a fuel hedging programme, of which a significant component

is crude oil. The impact of the programme (including the cost of options) was losses totalling $21 million for the year, compared to losses of $24 million for the previous year.Aircraft maintenance and overhaul costs were $303 million for the period, flat against the previous year, with reduced maintenance costs on the Air New Zealand fleet offset by increased costs relating to third party contracts. Foreign currency decreased the current period expense by $3 million compared to the prior period. Aircraft operations costs were up $29 million or 7.4 percent to $419 million, offset slightly by a favourable foreign exchange impact of $3 million. The increase was driven mostly by higher New Zealand airport landing charges of $26 million.Passenger services expenses were down $11 million to $222 million, due to inflight passenger entertainment and meal savings achieved through a series of product alignment and supply chain initiatives.Fleet replacement programmes resulted in increased depreciation and reduced lease costs as owned aircraft replaced operating leased aircraft. The residual values of exiting fleets were reassessed, resulting in an increase in depreciation.Net finance costs were down $10 million on the previous period, benefiting from increased cash holdings and more favourable interest rates.

foreign exchange impactThe impact of a stronger New Zealand dollar against Air New Zealand’s major trading currencies resulted in a negative foreign exchange movement of $18 million on the revenue and cost base, offset by a positive movement from the hedging programme. Foreign exchange gains of $7 million in the current year compared to losses of $68 in the prior year resulted in a $75 million improvement. Overall, currency movements had a $57 million favourable impact on the Group’s result.

cash & financial positionNet cash at year end was $1.15 billion, $123 million higher than the previous year. The key driver was operating cash flow of $750 million, an increase of $278 million, offset by the acquisition of fixed assets and debt repayments during the period. Net gearing, including capitalised operating leases, improved 7.0 percentage points to 39.1 percent.

Air New Zealand’s earnings before taxation for the 2013 financial year were $256 million, an increase of 172 percent on the previous year. Net profit after taxation was $182 million, up 156 percent. The result reflects sustained earnings momentum with revenue growth and continued improvements in cost efficiencies across the Group. Operating cash flow of $750 million was a record for the Group.

financial commentaryThe key changes in profitability, after isolating the impact of foreign exchange movements, are set out in the table below*:

2012 earnings before taxation $94m

Passenger yield $34m

> Yield growth in International routes offset by reduced Domestic yield to stimulate growth

> Long haul yields improved by 4.3 percent (6.1 percent Fx adjusted)

> Short haul yields deteriorated 2.3 percent (1.7 percent Fx adjusted)

Passenger traffic $137m

> Passenger demand was up 2.7 percent, driven by strong demand in Tasman Pacific (up 5.1 percent), and Domestic (up 4.2 percent)

> Capacity increased by 1.7 percent, with growth across the short haul network

> The resulting passenger load factor for the Group improved 0.8 percentage points to 83.6 percent

Cargo, contract services and other revenue $12m > Increase in cargo volumes and yield and focus on ancillary revenues

Labour -$20m> Reduced headcount and productivity improvements offset by

rate increases

Fuel price $11m> The average US$ into plane cost decreased 1.6 percent compared

to last year offset by derivatives hedging exposures in other financial periods

Fuel volume -$11m> Higher consumption due to an increase in capacity of 1.7 percent

partially offset by the introduction of new fuel efficient aircraft

Maintenance -$3m> Increase in third party activity offset by reduced maintenance costs

on the Air New Zealand fleet and completion of end of lease activity

Aircraft operations -$32m> Landing charge price increases across New Zealand airports and

activity driven cost increases

Passenger services $9m > Cost savings from product alignment

Sales and marketing -$8m > Revenue driven commission increases

Other expenses -$1m> Continued focus on discretionary spend offset by losses on Virgin

derivative and New Zealand Commerce Commission settlement

Depreciation, lease and funding costs -$23m

> Depreciation costs increased reflecting new aircraft (including the full period impact of investment in B777-300ER aircraft in the prior year) and the reassessment of residual values on exiting fleets offset by lease savings

Net impact of foreign exchange movements $57m> The net impact of currency movements on revenue and costs,

including reduced foreign exchange hedging losses

2013 earnings before taxation $256m

Air New Zealand Annual Shareholder Review 2013 13Air New Zealand Annual Shareholder Review 201312

change in profitability

*The numbers referred to in the Financial Commentary on the previous page have not isolated the impact of foreign exchange.

DIVIDEND RECORD DATE: 13/09/2013

DIVIDEND PAYMENT DATE: 23/09/2013

10.0

8.0

6.0

4.0

2.0

0.02009 2013201220112010

dividend history

CEN

TS P

ER S

HA

RE

6.5 7.0

5.5 5.5

8.0

FINANCIAL PERFORMANCE12 MONTHS TO

30 JUNE 2013$M

12 MONTHS TO 30 JUNE 2012

$M

Operating Revenue

Passenger revenue CargoContract services and other revenue

3,765301552

3,634298551

4,618 4,483Operating Expenditure

LabourFuelMaintenanceAircraft operationsPassenger servicesSales and marketingForeign exchange gains/(losses)Other expenses

(1,069) (1,204)

(303)(419)(222)(274)

7 (236)

(1,050) (1,219)

(303)(390)(233)(270)

(68) (235)

(3,720) (3,768) Earnings Before Finance Costs, Depreciation, Amortisation, Rental Expenses and Taxation 898 715

Depreciation and amortisationRental and lease expenses

(411) (177)

(348) (209)

Earnings Before Finance Costs and Taxation 310 158Net finance costs (54) (64) Profit Before Taxation 256 94Taxation expense (74) (23)Net Profit Attributable to Shareholders of Parent Company 182 71

Interim and final dividend declared per share (cents) 8.0 5.5Net tangible assets per share (cents) 158 148

Supplementary informationEarnings before Taxation (per NZ IFRS above) 256 94Reverse net (gains)/losses on derivatives that hedge exposures in other financial periods:

Fuel derivatives (2) (11)Foreign exchange derivatives 2 8

Normalised Earnings before Taxation 256 91Normalised Earnings after Taxation 182 69

Normalised Earnings represents Earnings stated in compliance with NZ IFRS (Statutory Earnings) after excluding net gains and losses on derivatives that hedge exposures in other financial periods. Normalised Earnings is a non-IFRS financial performance measure that matches derivative gains or losses with the underlying hedged transaction, and represents the underlying performance of the business for the relevant period. Statutory Earnings is similar to Normalised Earnings in both the 2013 and 2012 financial years and accordingly has been used in the current year Financial Commentary.

CASH FLOWS 12 MONTHS TO

30 JUNE 2013$M

12 MONTHS TO 30 JUNE 2012

$M

Cash inflows from operating activitiesCash outflows from operating activities

4,692 (3,953)

4,544 (4,089)

Rollover of foreign exchange contracts relating to operating activities739

11455

17

Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities

750 (480)

(147)

472(654)

349

Increase in cash and cash equivalentsCash and cash equivalents at the beginning of the year

123 1,027

167860

Cash and Cash Equivalents at the End of the Year 1,150 1,027

FINANCIAL POSITIONAS AT 30 JUNE 2013

$M30 JUNE 2012

$M

Bank and short term deposits 1,150 1,029 Trade and other receivables 350 374 Inventories 155 170 Derivative financial assets 98 40 Income taxation - 20 Other assets 105 67 Total Current Assets 1,858 1,700

Trade and other receivables 49 48 Property, plant and equipment 2,935 3,092 Intangible assets 69 63 Investment in quoted equity instruments 261 203 Investments in other entities 46 60 Other assets 394 293 Total Non-Current Assets 3,754 3,759 Total Assets 5,612 5,459

Bank overdraft and short term borrowings - 2 Trade and other payables 382 373 Revenue in advance 918 902 Interest-bearing liabilities 159 155 Derivative financial liabilities 13 14 Provisions 15 61 Income taxation 27 - Other liabilities 196 176 Total Current Liabilities 1,710 1,683

Revenue in advance 140 135 Interest-bearing liabilities 1,470 1,537 Provisions 145 94 Other liabilities 21 25Deferred taxation 310 297 Total Non-Current Liabilities 2,086 2,088 Total Liabilities 3,796 3,771 Net Assets 1,816 1,688

Issued capital 2,277 2,282 Reserves (462) (596) Non-controlling interests 1 2 Total Equity 1,816 1,688

The summary financial information has been derived from, and should be read in conjunction with, the Air New Zealand Group Annual Financial Statements (the ‘Annual Financial Statements’). The Annual Financial Statements, dated 29 August 2013, are available at: www.airnzinvestor.com. The summary financial information cannot be expected to provide as complete an understanding as provided by the Annual Financial Statements. The accounting policies used in these financial statements are attached in the notes to the Annual Financial Statements.

Electronic Shareholder CommunicationWe encourage investors to elect to receive investor communications electronically. This is more efficient and aligns with our strategic objective of becoming one of the most environmentally sustainable airlines in the world. Simply visit the Link Market Services website www.linkmarketservices.com or contact them directly (details at right).

Full Annual Financial ReportThe full Annual Financial Report is available by visiting our website www.airnzinvestor.com or you may elect to have a copy sent to you by contacting Investor Relations.

Investor Relations OfficePrivate Bag 92007, Auckland 1142, New Zealand

Phone: 0800 22 22 18 (New Zealand) (64 9) 336 2287 (Overseas)

Fax: (64 9) 336 2664

Email: investor@airnz.co.nz

Website: www.airnzinvestor.com

Share RegistrarLINK MARKET SERVICES LIMITED

Level 7, Zurich House, 21 Queen Street, Auckland 1010, New Zealand PO Box 91976, Auckland, 1142, New Zealand

Email: enquiries@linkmarketservices.co.nz

Website: www.linkmarketservices.com

New Zealand Phone: (64 9) 375 5998 Fax: (64 9) 375 5990

Australia Phone: (61) 1300 554 474

financial summary financial summary

Air New Zealand Annual Shareholder Review 2013 15Air New Zealand Annual Shareholder Review 201314

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