Air NZ launches comprehensive recapitalisation package

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES 30 March 2022 Air New Zealand launches comprehensive recapitalisation package including pro rata renounceable rights offer Air New Zealand is launching a comprehensive NZ$2.2 billion recapitalisation package to help position the airline for recovery. Full details of the recapitalisation are set out in the attachment. The recapitalisation has been sized with a view to maintaining Air New Zealand's investment grade credit rating (Moody's Baa2 - stable outlook) and to support the execution of Air New Zealand's strategic priorities. The package includes a $1.2 billion pro rata renounceable Rights Offer, allowing eligible shareholders an opportunity to buy additional shares in Air New Zealand at a discount relative to the prevailing share price. Air New Zealand Chair Dame Therese Walsh, said: "While there will still be bumpy skies ahead over the next few years, the moment is right for Air New Zealand to raise equity, recapitalise its balance sheet and repay the loan it received from the Crown during the Covid crisis. This is an important step in refuelling for our recovery. The Rights Offer we are launching today is structured to provide all eligible Air New Zealand shareholders with a fair opportunity to participate." Details of the recapitalisation package Air New Zealand's recapitalisation comprises: o A pro rata renounceable rights offer of ordinary shares to Eligible Shareholders to raise NZ$1.2 billion (Rights Offer). The Crown has committed to supporting the Rights Offer and will participate in the Offer to ensure it holds a 51% shareholding in Air New Zealand on completion of the Rights Offer. The Rights Offer, other than the Crown participation, is underwritten o NZ$600m of redeemable shares to be issued to the Crown under the existing subscription agreement previously announced on 14 December 2021 (Redeemable Shares) o A new committed unsecured 4 year Crown Loan of NZ$400 million (New Crown Loan) Air New Zealand updates FY22 loss guidance On 24 February 2022, Air New Zealand announced with its FY2022 interim results that its expectation at that time was that the 2022 financial year will incur a loss before taxation and other significant items that exceeds $800 million. Air New Zealand has seen some benefits from the limited period of sales after the Government's recent announcement accelerating the plan to open New Zealand's borders, but a large degree of uncertainty remains. Air New Zealand now expects its FY2022 full year result to be a loss before other significant items and taxation of less than $800 million. Beyond FY2022, further losses are expected to be incurred in the near-term with the amount of such losses subject to the level and pace of the return of demand. Investor call details A conference call regarding the announcement will be hosted by Chief Executive Officer Greg Foran and Chief Financial Officer Richard Thomson on Thursday, 31 March 2022 at 10:30am NZ time. To register for the call and access a dial-in, please use the following link: https://s1.c-conf.com/diamondpass/10021059-dfje333.html Ends. This announcement has been authorised for release to NZX and ASX by: Jennifer Page General Counsel & Company Secretary Email: jennifer.page@airnz.co.nz Phone: +64 27 9090 691 For investor relations queries please contact: Leila Peters GM Corporate Finance Email: leila.peters@airnz.co.nz Phone: +64 21 743 057 For media enquiries, please contact: Air New Zealand Communications Email: media@airnz.co.nz Phone: +64 21 747 320 Important Information This communication is not for distribution or release in the United States. This communication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The Rights and the New Shares have not been, and will not be, registered under the US Securities Act of 1933 (US Securities Act), or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold, directly or indirectly, in the United States or to any person acting for the account or benefit of any person in the United States, except in transactions exempt from, or not subject to, registration under the US Securities Act and applicable securities laws of any state or other jurisdiction of the United States. End CA:00389769 For:AIR Type:OFFER Time:2022-03-30 18:04:28