$1b Recovery Plan

Financial risk management framework VOLUME Hedging Program Reducing cash flow volatility in the short term through disciplined hedging program to allow for implementation of operational levers SHORT TERM HEDGING [Rolling 24 months) Greater volume of hedging required in short term to mitigate earnings volatility TIME LONG TERM OPERATIONAL LEVERS Business implements strategies to minimise earnings volatility. Timeframe to take effect is longer than hedging Capacity discipline has delivered revenue increases in line with fuel price increases Principles of Financial Risk Management Principles of financial risk management - - - Manage net cash flow impacts Takes into consideration both revenue and cost drivers Greater use of derivatives in the short term and reliance on operational levers in the long term Rolling 24 month hedge horizon Preference for optionality to minimise worst case outcome and allow participation in favourable market moves Remaining financial risks impacting earnings are largely accounting based and include - - Interest rate impact on valuation of accounting provisions FX revaluation of foreign currency non-hedged balance sheet items e.g. lease return provisions accounted for in USD As accounting estimates become cash obligations and fall within 24 month hedge horizon, principles of financial risk management are applied | 21

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