$1b Recovery Plan

Net Debt target range • Net Debt target range = 2.0x - 2.5x ROIC EBITDA where ROIC = 10% At average Invested Capital of $4.9b, optimal Net Debt range is $4.2b to $5.2b Invested Capital Avg Invested Capital for trailing 12 months Jun 22 Drivers of Net Debt range $B 4.9 Invested Capital will grow in line with aircraft deliveries including Project Winton and Sunrise 10% ROIC EBIT Invested Capital x 10% 0.49 Notional EBIT increases as Invested Capital grows plus rolling 12 month ROIC depreciation¹ Includes notional depreciation on aircraft operating leases 1.59 Depreciation changes as fleet renewed EBITDA where ROIC = 10% 2.08 Net Debt target range² Net Debt at 2.0x EBITDA where ROIC = 10% 4.2 Net Debt target range moves over time with the above When actual results > 10% ROIC leveraged levels are below 2.0x Net Debt at 2.5x EBITDA where ROIC = 10% 5.2 Group leverage target consistent with investment grade credit metrics 1. Equal to the ROIC depreciation for the 12 months to 30 June 2022 and includes Group Underlying depreciation and amortisation (excluding lease depreciation under AASB 16), and notional depreciation on leased aircraft. 2. The appropriate level of Net Debt reflects the Qantas Group's size, measured by Invested Capital and is premised on maintaining ROIC above 10%. | 18

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