New Zealand Professional Investment Services Firm

Forsyth Barr

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Step-up in yields: The strong yield driven earnings rebound is consistent with airlines globally; robust COVID demand has been in excess of industry supply creating a very favourable pricing backdrop</li><li>Capacity in step with competition for now: AIR's international capacity recovery appears in step with competing airlines into the New Zealand market, though this is likely to change over the next 18 months</li><li>Cost reinvestment: The reinvestment in people and capability is adding unproductive costs in the near-term</li></ul>

Step-up in yields: The strong yield driven earnings rebound is consistent with airlines globally; robust COVID demand has been in excess of industry supply creating a very favourable pricing backdropCapacity in step with competition for now: AIR's international capacity recovery appears in step with competing airlines into the New Zealand market, though this is likely to change over the next 18 monthsCost reinvestment: The reinvestment in people and capability is adding unproductive costs in the near-term

Air New Zealand: 1H23 — Close to Full Thrust