March 19, 2018

LOS ANGELES INTERNATIONAL AIRPORT INVESTOR PRESENTATION

2

Disclaimer GENERAL – This presentation you are about to view is provided as of March 12, 2018 in connection with the proposed issuance of the Department of Airports of the City of Los Angeles, Los Angeles International Airport, Senior Refunding Revenue Bonds, 2018 Series B (the “Bonds”). If you are viewing this presentation after March 12, 2018 there may have been events that occurred subsequent to such date that would have a material adverse effect on the information that is presented in this presentation, and the Department of Airports of the City of Los Angeles (the “Department”) does not undertake any obligation to update this presentation. The information provided in this presentation is not warranted as to completeness or accuracy and is subject to change without notice. All numbers contained in this presentation are approximate.

ADDITIONAL INFORMATION – For further information and a more complete description of the Department and the Bonds, investors are referred to the Preliminary Official Statement of the Department regarding the Bonds dated as of March 12, 2018. This presentation is provided for your information and convenience only. Any investment decisions regarding the Bonds should only be made after a careful review of an Official Statement of the Department related to the Bonds. The issuance of the Bonds, and the size and timing of any transaction are subject to, among other things, market conditions. The Department is under no obligation to pursue any transaction, or any particular structure and reserves the right to change or modify its plans as it deems appropriate. Capitalized terms not defined in this presentation have the meanings ascribed to them in the Preliminary Official Statement.

NO OFFER OF SECURITIES – This presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument, including the Bonds or other Department securities, or to adopt any investment strategy. Any offer or solicitation with respect to the Bonds will be made solely by means of an Official Statement of the Department related to the Bonds, which describes, among other things the actual terms of the Bonds. In no event shall the Department be liable for any use by any party of, for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained in this presentation and such information may not be relied upon by any party in evaluating the merits of participating in any transaction mentioned in this presentation. Nothing in these materials constitutes a commitment by the Department to enter into any transaction. No assurance can be given that any transaction mentioned in this presentation could in fact be executed. Past performance is not indicative of future returns, which will vary. Transactions involving the Bonds may not be suitable for all investors. Each investor should consult with his, her or its own advisors as to the suitability of securities or other financial instruments for the investor’s particular circumstances.

FORWARD-LOOKING STATEMENTS – Certain statements included in this presentation constitute “forward-looking statements.” Such statements are generally identifiable by the terminology used, such as “plan,” “expect,” “estimate,” “budget,” or other similar words. The achievement of certain results or other expectations contained in such forward-looking statements involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements described to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. No assurance can be given that any future results discussed in this presentation will be achieved, and actual results may differ materially from the expectations and forecasts described in this presentation. All projections, forecasts, assumptions, expressions of opinion, estimates and other forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth in this presentation. The Department does not plan to issue any updates or revisions to those forward-looking statements if or when the expectations, or events, conditions or circumstances on which such statements are based, occur. Statements contained in this presentation which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described in this presentation, are intended solely as such and are not to be construed as representations of fact. Further, expressions of opinion, whether or not expressly so described in this presentation, are intended solely as such and are not to be construed as representations of fact. Further, expressions of opinion contained in this presentation are subject to change without notice and the delivery of this presentation will not, under any circumstances, create any implication that there has been no change in the affairs of the Department. By providing the information in this presentation, the Department does not imply or represent (a) that all information provided in this presentation is material to investors’ decisions regarding investment in the Bonds, (b) the completeness or accuracy of any financial, operational or other information not included in this presentation, (c) regarding any other financial, operating or other information about the Department, or its outstanding securities (including the Bonds), (d) that no changes, circumstances or events have occurred since the dated date of the information provided this presentation or (e) that no other circumstances or events have occurred or that no other information exists concerning the Department, its outstanding securities (including the Bonds) or the contemplated transactions which may have a bearing on Department financial condition, the security for Department securities (including the Bonds), or an investor’s decision to buy, sell, or hold any of the Department’s securities (including the Bonds).

RESTRICTIONS ON USE – This presentation may not be reproduced, disseminated, quoted or referred to, in whole or in part. By accessing or otherwise accepting this presentation, you agree not to duplicate, copy, screen capture, electronically store or record this presentation, nor to produce, publish or distribute this presentation in any form whatsoever.

NO RELIANCE ON THE DEPARTMENT – The Department and the Underwriters make no representations as to the legal, tax, credit or accounting treatment of any transactions mentioned in this presentation, or any other effects such transactions may have on you and your affiliates or any other parties to such transactions and their respective affiliates. You should consult with your own advisors as to such matters and the consequences of the purchase and ownership of securities or other financial instruments. The Department and the Underwriters do not provide tax advice. Any statements contained herein as to tax matters were neither written nor intended to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on such taxpayer.

SUMMARIES NOT COMPREHENSIVE OR DEFINITIVE – This presentation may include brief descriptions of the Department, the Bonds and summaries of the Department’s indentures and certain other documents. Such summaries do not purport to be comprehensive or definitive. All references in this presentation to such documents and to any other documents, statutes, reports or other instruments described in this presentation are qualified in their entirety by reference to each such document, statute, report or other instrument.

3

Transaction Summary

Senior Refunding Revenue Bonds 2018 Series B (AMT)

Par Amount* $230,465,000*

Structure* Fixed rate bonds, generally level debt service, maturing from 2024 to 2034*

Tax Status** AMT

Use of Proceeds (i) Fund an escrow to refund and defease $265,045,000 Series 2008 A Senior Bonds, and (ii) pay costs of issuance of the Bonds

Security Payable solely from and secured by a pledge of Net Pledged Revenues and certain funds and accounts held by the Senior Trustee

Call Provisions To be determined at pricing

Ratings Moody’s: Aa3 / S&P: AA / Fitch: AA Outlook: Stable

Pricing Date* March 21, 2018

Closing Date* April 4, 2018

Senior Manager Ramirez & Co., Inc.

Co-Managers Citigroup; The Williams Capital Group, L.P.

*Preliminary, subject to change ** The 2018 Series B Bonds will be exempt from California State income tax

4

Premier Domestic & International

Gateway

Largest Origin & Destination (O&D) passenger airport in the U.S.

Serves 2nd largest Combined Statistical Area (CSA) by population, number of households with income >$100,000 and gross regional product

2nd busiest international gateway airport in the U.S. and the busiest international gateway on the West Coast

Operational Results

41.6 million enplanements, 6.8% more than FY2016 No one carrier accounted for more than 20% of total passenger traffic

Financial Results

Operating Revenues grew 10.1% from FY2016, led by 10.8% growth in concession revenues

Senior Lien Debt Service Coverage = 4.71x Total Debt Service Coverage = 2.90x

Capital Development

Midfield Satellite Concourse – North will provide 12 new gates $2.9 billion of tenant-managed terminal improvement projects underway Updated FY2018-2023 Capital Program of $9.6 billion includes Automated People

Mover (APM) System project

Strong Credit Fundamentals

LAX has continued its strong operational and financial performance in FY2017

Applies to the rest of the presentation: -“Traffic” means passenger enplanements -All percentages and numbers in millions are approximated by rounding

5

Large, Wealthy and Diverse Population

LAX’s Air Trade Area is the Los Angeles CSA – the 2nd largest in the U.S. by population and number of households with income > $100,000

Competitive Advantages of the Air Trade Area

Large and growing population

Wealthy: 1.9 million households in CSA with income in excess of $100,000

Diverse: 30.3% of population is foreign-born, driving strong international travel demand

Leading global tourist destination

31.1 million overnight visitors (2016, up 3% from prior year)

7.1 million international visitors (up 6%)

Home to world-class attractions, museums and sporting events

Sources: U.S. Department of Commerce, Bureau of the Census; Fortune Magazine, Los Angeles Tourism & Convention Board; U.S. Department of Commerce, ITA, National Travel and Tourism Office

5 Largest Metropolitan Regions (2016) (Amounts in millions)

Rank Metropolitan region Population # of Households

Income > $100k

1 New York-Newark CSA 23.8 3.1

2 Los Angeles CSA 18.9 1.9 3 Chicago-Naperville CSA 10.0 1.2

4 Washington-Baltimore-Arlington CSA

9.7 1.5

5 San Jose-San Francisco-Oakland CSA

8.8 1.3

Los Angeles CSA accounts for 48% of California’s population

Region is economic anchor for Southern California

CSA: Combined Statistical Area as defined by Office of Management and Budget. LA CSA: Counties of Los Angeles, Orange, Riverside, San Bernardino, and Ventura

6

Large, Diverse and Robust Economy

A center for international trade, the Los Angeles CSA is also the nation’s 2nd largest by gross regional product

The Los Angeles CSA is the second largest CSA in the U.S. with gross regional product of $1.1 trillion (38% larger than next largest, San Francisco)

Headquarters to 15 Fortune 500 companies with global business presence and industry diversification

The Port of LA, together with the Port of Long Beach, is the busiest U.S. port complex

Home to many prestigious higher education and research institutions

The CSA accounts for 48.0% of the non-farm employment in California

Source: U.S. Department of Commerce, Fortune Magazine, Los Angeles Consular Corps.

2016 Gross Regional Product by CSA (billions of dollars)

Chart1

New York-Newark

Los Angeles

San Jose-San Francisco-Oakland

Washington-Baltimore-Arlington

Chicago-Naperville

Boston-Worcester-Providence

Dallas-Fort Worth

Houston-The Woodlands

Philadelphia-Reading-Camden

Atlanta-Athens Clarke County-Sandy Springs

Series 1

1.824

1.139

0.828

0.728

0.661

0.585

0.538

0.533

0.462

0.372

Sheet1

Series 1

New York-Newark1.824

Los Angeles1.139

San Jose-San Francisco-Oakland0.828

Washington-Baltimore-Arlington0.728

Chicago-Naperville0.661

Boston-Worcester-Providence0.585

Dallas-Fort Worth0.538

Houston-The Woodlands0.533

Philadelphia-Reading-Camden0.462

Atlanta-Athens Clarke County-Sandy Springs0.372

7

Highly Diversified Air Carrier Mix

LAX is served by 19 domestic and 56 foreign flag carriers, with no single airline accounting for more than 20% of enplanements1

1. Does not include unscheduled service. 2. For those airlines that (i) were party to a completed merger or acquisition, (ii) have

received a single FAA certificate and (iii) have completed operational integration, only the surviving entity is presented and the activity for the airlines that are now a part of the surviving airline are included in the information presented (including in years prior to the such merger or acquisition). Due to its date of publication, certain of the information contained in this table is more current than certain of the information contained in the Annual Financial Report of Los Angeles World Airports (Department of Airports of the City of Los Angeles, California) Los Angeles International Airport for the Fiscal Years ended June 30, 2017 and 2016.

Enplanements by Carrier in FY20172,3

Share of Passengers Carried By Largest Airline at Top 10 U.S. Airports4

CLT = Charlotte Douglas International Airport SFO = San Francisco International Airport

DFW = Dallas/Fort Worth International Airport DEN = Denver International Airport

ATL = Hartsfield-Jackson International Airport LAS = McCarran International Airport

SEA = Seattle-Tacoma International Airport JFK = John F. Kennedy International Airport

ORD = Chicago O’Hare International Airport LAX = Los Angeles International Airport

3. Virgin America was acquired by Alaska Airlines in December 2016; however, data for the respective airlines is being presented separately until Fiscal Year 2018 data is available. 4. Top 10 airports based on total enplaned passengers as of the 12 months ending May 2017, airline name represents largest airline at that airport. Source: Los Angeles International Airport records; Airport Consultant

Chart1

American Airlines

Delta Air Lines

United Airlines

Southwest Airlines

Alaska Airlines

Virgin America

Other

Column1

[] []

[] []

[] []

[] []

[] []

[] []

[] []

0.192

0.164

0.146

0.116

0.043

0.041

0.297

Sheet1

Column1

American Airlines19.2%

Delta Air Lines16.4%

United Airlines14.6%

Southwest Airlines11.6%

Alaska Airlines4.3%

Virgin America4.1%

Other29.7%

Chart1

CLTCLT

DFWDFW

ATLATL

SEASEA

ORDORD

SFOSFO

DENDEN

LASLAS

JFKJFK

LAXLAX

Largest Airline Share of Passengers

Largest Airline

0.91

0

0.85

0

0.794

0

0.491

0

0.458

0

0.445

0

0.417

0

0.388

0

0.27

0

0.194

0

Sheet1

AirportLargest Airline Share of PassengersLargest Airline

CLT0.91American Airlines

DFW0.85American Airlines

ATL0.79Delta Air Lines

SEA0.49Alaska Airlines

ORD0.46United Airlines

SFO0.45United Airlines

DEN0.42United Airlines

LAS0.39Southwest Airlines

JFK0.27Delta Air Lines

LAX0.19American Airlines

FIGURE 11 DATA, A-45

LAX Series 2018A

8

LAX is an International Gateway

LAX is the busiest international gateway on the West Coast, with a balanced mix of enplanements by region

Top 10 International O&D

Market

% of Int’l O&D Passengers

Number of Airlines (Dec. 2017)

Average Daily Nonstop Departures (Dec. 2017)

London 4.5% 10 6

Tokyo 3.7% 9 6

Mexico City 3.5% 16 7

Guadalajara 3.4% 9 5

Vancouver 3.3% 12 5

Seoul 3.2% 5 3

Shanghai 3.2% 5 4

Taipei 3.1% 5 2

Cancun 2.7% 6 5

Toronto 2.7% 7 3

LAX was #2 in the U.S. (after JFK) and #1 among West Coast airports for international enplanements during the 12‐month period ended May 2017

During this period, LAX served 11.6 million international enplaned passengers and accounted for over 95% of the region’s international enplaned passengers

By comparison, SFO served 6.3 million of international passengers during this period

International Enplanements by Region

Source: T100 International, IATA Pax IS; OAG Schedules *For the 12‐month period ended May2017 Note: O&D data through December 2017 (latest available)

Chart1

Asia

Europe

Mexico

Pacific

Canada

Latin American and the Caribbean

Africa/Middle East

Africa/Middle East 4.9%

Sales

[] []

[] []

[] []

[] []

[] []

[] []

0.284

0.191

0.181

0.113

0.098

0.083

0.049

Sheet1

Sales

Asia28.4%

Europe19.1%

Mexico18.1%

Pacific11.3%

Canada9.8%

Latin American and the Caribbean8.3%

Africa/Middle East4.9%

9

0

10

20

30

40

50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Mill

ions

Domestic International Total

O&D passengers represented 79.4% of total traffic 70.9% were domestic enplanements, while 29.1% were international enplanements Enplanements grew at a 5-year compound annual growth rate (CAGR) (2012-2017) of 5.7%,

outpacing overall U.S. growth of 2.6% Enplanements are projected to grow at a CAGR of 2.6% between FY2017 and FY2024

LAX Growth in Enplanements

Source: Los Angeles International Airport records and Airport Consultant

FY2017 enplanements of 41.6 million, an increase of 6.8% from FY2016

Actual & Projected Total Enplaned Passengers (FY)

Total CAGR (2017-2024): 2.6% Total EPAX 5-Year CAGR (2012-2017): 5.7%

International CAGR (2017-2024): 3.5%

Domestic CAGR (2017-2024): 2.3%

10

31% of total Capital Program costs are expected to be funded by $2.9 billion of Department cash

Capital Program

Capital Program by Cost Center (millions) Capital Program Funding Sources (millions)

Federal Grants $211.8

PAYGO PFC $261.5

LAWA Funds $2,940.5

Other Funds $138.6

Prior Bonds

$1,283.5 Series 2018A Subordinate

Bonds** $426.5

Future Bonds* $4,359.7

FY2018-2023 Capital Program totals $9.6 billion and includes APM System costs

* Excludes Series 2018A Subordinate Bonds ** Series 2018A Subordinate Bonds are scheduled closed on March 15, 2018

Chart1

Terminal

Airfield & Apron

Access

Other

Sales

[] []

[] []

[] []

[] []

6138.3

729.3

2220.4

507.6

Sheet1

Sales

Terminal$6,138.3

Airfield & Apron$729.3

Access$2,220.4

Other$507.6

To resize chart data range, drag lower right corner of range.

11

Active Construction and Risk Management

Airport Managed Projects Combination of design-bid-build and design-build

Provides greater control to the Department for projects with multiple airline tenants

Tenant Managed Projects Employed in Airlines/Concessionaires controlled areas to manage business impacts

Effective means of managing scope, cost, and schedule

Public-Private Partnerships Use Design, Build, Finance, Operate, and Maintain (DBFOM) model to transfer significant

risks associated with cost, schedule adherence and operational performance to a developer

Balances upfront investment costs with long-term lifecycle investment costs

LAX continues to employ various strategies to design, build, operate, maintain and finance multiple facilities at one time while managing risk

12

Midfield Satellite Concourse – North

12 new gates capable of both domestic and international operations

Connection via underground tunnel to TBIT/Bradley West incorporating expanded and efficient baggage processing

A total of 800,000 s.f.

Designed to reduce reliance on West Remote Gates

MSC – North is designed to improve terminal operations, concessions, and overall passenger experience

Ground Breaking: February 2017

Expected Completion: Fiscal Year 2020

North Concourse: $1.55 billion North Apron: 0.19 billion Total Cost: $1.74 billion

Status

13

Airline Managed Projects

Airline tenants initially finance, control design and construction, and focus on improving efficiencies and enhancing the passenger experience

LAWA purchases improvements at an agreed upon price when project components are completed

Construction and delivery risk is transferred to the airlines

Several terminal improvement projects are being managed by the airlines, expanding LAWA’s delivery capacity

Terminal Manager Total Amount

1 Southwest $514 million

TBIT Baggage Optimization

TBITEC $260 million

2/3* Delta $1.8 billion

6/7/8 United $545 million

Major Terminal Improvements Under Way

Terminal 1

Terminal 6

* Also referred to as the “North Terminal Improvement Program”

14

Automated People Mover (APM) System

LAWA expects to enter into a DBFOM contract for the APM System

The APM System is expected to provide 24-hour access to the Central Terminal Area (CTA), transporting passengers between the CTA and other Airport facilities, including a new consolidated rental car facility (CONRAC), a light rail station, and new public parking facilities

In January 2018, LAWA received three responses to a competitive solicitation to select the APM Developer

The Department has entered into an early works agreement with LAX Integrated Express Solutions (LINXS):

The APM System is scheduled to be operational in FY2023

Equity Members

ACS Infrastructure Development, Inc. Balfour Beatty Investments, Inc. Bombardier Transportation (Holdings) USA Inc. Fluor Enterprises, Inc. HOCHTIEF PPP Solutions GmbH

15

LAWA’s APM Financial Obligations

LAWA will make a series of milestone payments to the APM Developer during construction of the APM system and just after APM DBO

These milestone payments and other costs related to the project are expected to be paid from Department funds and net proceeds of future bonds

Availability Payments (AP) will have two components and are expected to total approximately $97 million during the first full year of operation

APs for maintenance and operation (M&O) expenses

APs for capital expenses

This does not include debt service on future bonds that the Department may issue to fund its share of APM System project costs

APM System capital and operating costs are expected to be paid from a combination of airline rates and charges, passenger facility charges (PFCs), Customer Facility Charges (CFCs), additional rental car payments, and non-airline revenues

LAWA expects to contribute to design and construction costs and, after Date of Beneficial Operation (DBO), to make annual

availability payments to the APM Developer

16

FY2017 Financial Results

Operating Revenues grew 10.1% in FY2017, led by 10.8% growth in concession revenues

Net Operating Income (before depreciation and amortization) grew by 8.0% to $586.2 million

Total debt service coverage remained very strong at 2.90x

The DSRFs are fully cash funded

Unrestricted cash totaled $791.5 million or 389 days’ cash on hand

REVENUES (000's) FY2016 FY2017 % Change

Aviation revenue $803,924 $859,952 7.0% Concession revenue 398,692 441,623 10.8% Airport sales and services 2,838 3,241 14.2% Other operating revenue* 1,158 23,783* -- * Total Operating Revenues $1,206,612 $1,328,689 10.1%

EXPENSES (000's) FY2016 FY2017 % Change

Salaries and benefits $387,595 $438,153** 13.0% Contractual services 182,659 203,277 11.3% Materials and supplies 46,062 43,830 (4.8%) Utilities 36,181 36,043 (0.4%) Other operating expenses 20,738 25,782 24.3% Allocated administrative charges (9,356) (4,585) (50.9%) Total Operating Expenses $663,879 $742,500 11.8%

NET OPERATING INCOME Before Depreciation and Amortization

$542,733 $586,189 8.0%

KEY FINANCIAL METRICS FY2016 FY2017

Senior Bond Debt Service Coverage 6.23x 4.71x

Total Debt Service Coverage 3.72x 2.90x

Airline CPE $14.83 $15.02

Liquidity – DCOH (excluding M&O Reserve)

435 389

Liquidity – DCOH (with M&O Reserve)

534 486

* FY2017 Other Operating Revenues include $21.0 million of employee salary and overhead reimbursement ** FY2017 Salaries and Benefits includes $17.4 million related to the transfer of Ontario International Airport, and $17.2 million of GASB 68 accrued pension expenses † FY2017 increase in Other Operating Expense was mainly due to the accrual and payment of $3.7 million property taxes for Park One parking lot pursuant to the lease covering FY2014-2017.

†

17

Concession Revenue Growth

Management initiatives continue to support concession revenue growth Concession revenues increased from $304.1 million in FY2013 to $441.6 million in FY2017,

representing a CAGR of 9.8% Transportation Network Companies (TNC) revenues totaled $33.7 million in FY2017 Landside concession revenue forecasts reflect conservative approach given uncertain long-term

impact of TNCs

Totals may not add due to rounding Source: City of Los Angeles, Department of Airports for historical information; Airport Consultant for forecasts Other includes, telecommunications, luggage carts and ATM revenue

Terminal Concession Revenues Landside Concession Revenues

Actual Budget Projected Actual Budget Projected

Chart1

2017201720172017201720172017

2018201820182018201820182018

2019201920192019201920192019

2020202020202020202020202020

2021202120212021202120212021

2022202220222022202220222022

2023202320232023202320232023

2024202420242024202420242024

Duty Free

Terminal Food/Beverage & Retail

Terminal Commercial Mgmt

Terminal Advertising

Foreign Exchange

Other

Total

76066

34303

43252

27977

9150

7949

198697

75000

37476

47893

26806

8490

7446

203111

80754

39873

50957

27342

8945

7792

215663

85928

46045

58843

28447

9366

8111

236740

90807

49502

63261

29596

9781

8426

251373

95754

53157

67933

30188

10203

8747

265982

100753

57016

72864

30792

10631

9072

281128

105794

61094

78076

31408

11066

9402

296840

Sheet1

Duty FreeTerminal Food/Beverage & RetailTerminal Commercial MgmtTerminal AdvertisingForeign ExchangeOtherTotal

201776,06634,30343,25227,9779,1507,949198,697

201875,00037,47647,89326,8068,4907,446203,111

201980,75439,87350,95727,3428,9457,792215,663

202085,92846,04558,84328,4479,3668,111236,740

202190,80749,50263,26129,5969,7818,426251,373

202295,75453,15767,93330,18810,2038,747265,982

2023100,75357,01672,86430,79210,6319,072281,128

2024105,79461,09478,07631,40811,0669,402296,840

xxxx

20172018201920202021202220232024Total

Concession Revenues

Auto parking96,69696,17195,16197,679100,011102,283104,484111,490803,975

Rental cars87,43397,40095,58295,65897,942100,167102,323109,641786,146

Duty free76,06675,00080,75485,92890,80795,754100,753105,794710,856xx

Food/Beverage23,17225,34526,96631,14033,47835,95038,56041,318255,929x

Retail11,13112,13112,90714,90516,02417,20718,45619,776122,537x

Commercial management43,25247,89350,95758,84363,26167,93372,86478,076483,079x

Duty paid terminal concessions77,55585,36990,830104,888112,763121,090129,880139,170861,545

Commercial vehicles58,79656,23459,25162,03564,78667,58370,41873,299512,402

Foreign exchange9,1508,4908,9459,3669,78110,20310,63111,06677,632xx

Telecommunications1,9911,0001,0001,0001,0001,0001,0001,0008,991xx

Other concession revenue5,9586,4466,7927,1117,4267,7478,0728,40257,954x

Terminal advertising27,97726,80627,34228,44729,59630,18830,79231,408232,556xx

Total Concession Revenues441,622452,916465,657492,112514,112536,015558,353591,2704,052,057

Terminal Food/Beverage & Retail34,30337,47639,87346,04549,50253,15757,01661,094378,466

Other7,9497,4467,7928,1118,4268,7479,0729,40266,945

Landside Revenues242,925249,805249,994255,372262,739270,033277,225294,4302,102,523

Terminal Concessions (Check)198,697203,111215,663236,740251,373265,982281,128296,8401,949,534

Other includes, among other items, terminal commercial management, gifts & news, foreign exchange, telecommunications, luggage carts and ATM revenue

Chart1

2017201720172017

2018201820182018

2019201920192019

2020202020202020

2021202120212021

2022202220222022

2023202320232023

2024202420242024

Auto Parking

Rental Cars

Commercial Vehicle Revenue

Total

96696

87433

58796

242925

96171

97400

56234

249805

95161

95582

59251

249994

97679

95658

62035

255372

100011

97942

64786

262739

102283

100167

67583

270033

104484

102323

70418

277225

111490

109641

73299

294430

Sheet1

Auto ParkingRental CarsCommercial Vehicle RevenueTotal

201796,69687,43358,796242,925

201896,17197,40056,234249,805

201995,16195,58259,251249,994

202097,67995,65862,035255,372

2021100,01197,94264,786262,739

2022102,283100,16767,583270,033

2023104,484102,32370,418277,225

2024111,490109,64173,299294,430

20172018201920202021202220232024Total

Concession Revenues

Auto parking96,69696,17195,16197,679100,011102,283104,484111,490803,975x

Rental cars87,43397,40095,58295,65897,942100,167102,323109,641786,146x

Duty free76,06675,00080,75485,92890,80795,754100,753105,794710,856

Food/Beverage23,17225,34526,96631,14033,47835,95038,56041,318255,929

Retail11,13112,13112,90714,90516,02417,20718,45619,776122,537

Commercial management43,25247,89350,95758,84363,26167,93372,86478,076483,079

Duty paid terminal concessions77,55585,36990,830104,888112,763121,090129,880139,170861,545

Commercial vehicles58,79656,23459,25162,03564,78667,58370,41873,299512,402x

Foreign exchange9,1508,4908,9459,3669,78110,20310,63111,06677,632

Telecommunications1,9911,0001,0001,0001,0001,0001,0001,0008,991

Other concession revenue5,9586,4466,7927,1117,4267,7478,0728,40257,954

Terminal advertising27,97726,80627,34228,44729,59630,18830,79231,408232,556

Total Concession Revenues441,622452,916465,657492,112514,112536,015558,353591,2704,052,057

18

Debt and Forecast Debt Service Coverage

LAX has $5.4 billion of long-term bonds outstanding which are 100% traditional fixed rate with a final maturity of 20471

While debt service is anticipated to increase over the forecast period, total debt service coverage is forecast to remain in excess of 1.90x in each year

Debt service coverage is forecast to remain solid

1. As of February 1, 2018; does not include subordinate commercial paper 2. Includes outstanding Commercial Paper as of February 1, 2018; the Commercial Paper Program has a total capacity of $500 million; does not include $426.5 million Series

2018A Subordinate Bonds scheduled to close on March 15, 2018 or the impact of the Series 2018B Senior Bonds Source: Department of Airports of the City of Los Angeles

Outstanding Debt2

Senior $3,510,415,000

65%

Subordinate $1,845,020,000

34%

CP, $51,438,000

1%

Forecast Debt Service Coverage

Chart1

FY 2018FY 2018FY 2018

FY 2019FY 2019FY 2019

FY 2020FY 2020FY 2020

FY 2021FY 2021FY 2021

FY 2022FY 2022FY 2022

FY 2023FY 2023FY 2023

FY 2024FY 2024FY 2024

Senior Bond Debt Service Coverage

Subordinate Obligations Debt Service Coverage

Total Bond Debt Service Coverage

Debt Service Coverage (x)

5.7

5.52

3.08

6.62

4.9

3.08

5.44

3.64

2.45

3.81

3.07

1.99

3.72

3.32

2.05

3.66

3.33

2.03

4.36

2.63

1.91

Sheet1

Senior Bond Debt Service CoverageSubordinate Obligations Debt Service CoverageTotal Bond Debt Service CoverageSubordinate Obligations Rate Covenant (115%)

FY 20185.75.523.081.15

FY 20196.624.93.081.15

FY 20205.443.642.451.15

FY 20213.813.071.991.15

FY 20223.723.322.051.15

FY 20233.663.332.031.15

FY 20244.362.631.911.15

19

Cost per Enplaned Passenger

Projected CPE reflects conservative financing and passenger growth assumptions

Projected CPE levels are reasonable in light of high demand, strong O&D base, and LAX’s role as an international gateway

The current airline agreements, tenant managed projects, and requests for improved facilities by the airlines are evidence of their commitment to, and support for, the Capital Program

CPE is forecast to rise, but reflects strong airline support for capital development at LAX

Fiscal Year

Forecast Cost per Enplanement

Source: City of Los Angeles, Department of Airports for budget information; Airport Consultant for forecasts

Actual Forecast

Chart1

2017

2018

2019

2020

2021

2022

2023

2024

Column1

15.02

16.22

17.11

18.73

21.66

23.26

23.8

25.82

Sheet1

Fiscal YearColumn1

201715.02

201816.22

201917.11

202018.73

202121.66

202223.26

202323.8

202425.82

20

Core Credit Features

Premier Global Gateway

Solid Financial Metrics

Substantial Net Cash Flow Generation

Selection of APM Developer Improves

Cost Certainty

Conservative Financial Forecasting

Use of Capital Delivery Alternatives

Diversified Air Carrier Base

2nd Largest International Gateway

Airport in the U.S.

Largest U.S. O&D Airport

Tenant Investment

Capital Program

21

Transaction Timeline and Contact Information

Contact Information Los Angeles International Airport Ryan Yakubik (424) 646-5251

Public Resources Advisory Group Jo Mortensen (510) 339-3212

Frasca & Associates Ken Cushine (212) 355-4050

Ramirez & Co., Inc. Ted Sobel (212) 378-7127

*Preliminary, subject to change

The Department plans to issue approximately $230.5 million* of Series 2018B Senior Bonds payable from, and secured by, Net Pledged Revenues

Series 2018B Senior Bonds

Use of Proceeds Bond Proceeds ($mm)

Defease 2008 Series A Bonds $265.0

Costs of Issuance $1.0

Total $266.0

Preliminary Schedule

Pricing March 21, 2018

Closing April 12, 2018

Slide Number 1DisclaimerTransaction SummaryStrong Credit FundamentalsLarge, Wealthy and Diverse PopulationLarge, Diverse and Robust EconomyHighly Diversified Air Carrier MixLAX is an International Gateway LAX Growth in EnplanementsCapital ProgramActive Construction and Risk ManagementMidfield Satellite Concourse – NorthAirline Managed ProjectsAutomated People Mover (APM) SystemLAWA’s APM Financial ObligationsFY2017 Financial ResultsConcession Revenue GrowthDebt and Forecast Debt Service CoverageCost per Enplaned PassengerCore Credit FeaturesTransaction Timeline and Contact Information