TAV Airports Holding

Transcription

1 TAV Airports Holding December

2 Page Overview 1 Financial Overview 19 Operations 29 Conclusion 48 1

3 TAV Airports Structure TAV Airports Holding Co. Airport Companies Service Companies Ataturk Airport (100%) ATÜ (50%) Esenboga Airport (100%) Adnan Menderes Airport (100%) Gazipasa Airport (100%) Tbilisi (%66) & Batumi (60%) Monastir & Enfidha Airport (67%) BTA (67%) HAVAS (65%) TAV O&M (100%) TAV IT (99%) TGS (%50) North Hub Services (%50) Skopje & Ohrid (100%) TAV Security (67%) 2

4 Revenues TAV Airports Overview Airports Duty Free Food and Beverage Ground Handling Others 9M10 / FY09 (5) Turkey Istanbul Ataturk Airport (100%), Ankara Esenboğa Airport (100%), Izmir Adnan Menderes Airport (Intl. Terminal) (100%), Gazipasa Airport (1) (100%) Georgia Tbilisi International Airport (66%) and Batumi Airport Tunisia Monastir and Enfidha Airports (2) (67%) Macedonia Skopje, Ohrid and Shtip Airports (3) (100%) 355m/377m ATÜ (50%) Largest duty free operator in Turkey Partner with Unifree owned by Heinemann, leading German travel retailer (Travel Value) Operating in Turkey,Georgia, Tunisia and Macedonia 123m/145m BTA (67%) Operating in Turkey, Georgia, Macedonia and Tunisia Operates Istanbul Airport Hotel (131 rooms) Bakery & pastry factory serving in Turkey 55m/59m Notes: (1) We had signed Gazipasa Airport concession agreement on January 7, 2008 and operations started on July 13, (2) We started operations in Monastir Airport on January 1, Enfidha Airport (greenfield investment) started operations in December (3) We are awarded the tender on September 2, 2008 and TAV commenced its operations as of 1 March, (4) Based on number of flights for 2009 (5) Revenues represent the proportional interest of these companies in TAV Airports (50% of ATÜ revenues) (before eliminations) *TGS started operations as of 1 January 2010 Havaş (65%) Major groundhandler in Turkey with a c.57% (4) share Operates in 22 airports in Turkey including Istanbul, Ankara, Izmir and Antalya *TGS(%50) operates in Istanbul, Ankara, Izmir, Antalya and Adana %50 partner of North Hub Services, operating in Riga and Helsinki 130m/126m O&M, IT and Security TAV O&M (100%): Commercial area allocations & CIP/VIP,travel agency services TAV IT (99%): Airport IT services (FIDS,FMS,etc) TAV Security (67%): Security service provider in Istanbul, Ankara, Izmir and Gazipasa 43m/66m 3

5 Ownership Structure (as of 30 November, 2010) Shareholder Structure Founding Shareholders 1. Tepe Insaat Sanayi A.Ş. (5) 40,1% (1) 26,1% Turkish integrated conglomerate focused on infrastructure and construction 2. Akfen Holding A.Ş. Holding company operating in the construction, tourism, insurance and energy sector (4) 3,5% (3) 4,2% (2) 26,1% 3. Sera Yapi Endustrisi A.Ş. Family of Dr. Sani Sener, CEO of TAV Airports Other shareholders 4. Other Non-floating 5. Other Free Float 2.Akfen Holding A.Ş. has 14,466,267 (3.98%) shares in the free float 3. Sera Yapi Endustrisi ve Tic. Ltd. Sti. has 806,544 (0.22%) shares in the free float * Morgan Stanley has 18,429,937 (5.07%) shares in the free float 4

6 Investment Highlights Diversified portfolio with leading market position Diversified Portfolio 10 airports operating in Turkey, Georgia, Tunisia and Macedonia (large catchment areas). Distinctive business model with an integrated structure Buoyant Turkish economy & young population strong pax growth Clear Regulatory Framework and Earnings Visibility Agreed regulatory framework providing high visibility Long-term concessions (Istanbul: 2021, Georgia: 2027, Macedonia: 2030, Tunisia: 2047) Fixed cost base (operational leverage) and minimal ongoing capex high cash flow conversion Well Positioned for Growth Benefiting both organic and inorganic growth Well positioned to win international concessions Development of the service business (e.g. ATÜ, BTA, Havaş) 5

7 Diversification into high growth markets Large catchment areas in operation Operating 3 of the 4 largest airports in Turkey 29,8 (Passenger number, million) Macedonia Turkey Georgia 18,4 48% MARKET SHARE Tunisia 6,2 6,1 İstanbul Antalya İzmir** Ankara Turkey TAV is the leading airport operator in Turkey with a 48% market share and high quality passengers The airport terminals which we operate in Turkey handled 37.5 million passengers in 2009 Istanbul is the largest business center in the region Tunisia The operation started as of January 1, 2008 in Tunisia Monastir Airport, which handled 3.8 million passengers in The operation commenced in Tunisia Enfidha Airport following the completion of the construction (December 2009) Georgia TAV operates Tbilisi Airport and Batumi Airport in Georgia Macedonia TAV started operations at Skopje and Ohrid Airports in Macedonİa as of March 1, Source: DHMI, Passenger figures for 2009 Since 2008 DHMI passenger figures are including transfer passengers, 2008 passenger figures are not comparable with 2007 passenger figures. **TAV only operates the International Terminal, which had 1,7m passengers in ,8 (Passenger number, million) 0,8 0,6 Tunisia Georgia Macedonia Source: TAV Tunisie, Georgian Authority, Macedonia Aviation Authority, Passenger figures for

8 IATA Traffic Flows 7

9 Turkish Aviation Market Turkish Aviation Market has grown rapidly ( ) Pax, Mn total int'l dom. Tourist Arrivals Deregulation of the domestic market in rd largest country in Europe in terms of population: 72.5m** Limited alternative transport infrastructure In 2009, foreign visitors reached 27m*** Tourist, Mn Source: DHMI, **Turkstat, ***Ministry Culture and Tourism 8

10 Aircraft Growth in Turkey CAGR : % Aircraft numbers will reach 750 in 2023 Source: Directorate General of Civil Aviation 9

11 Turkish Aviation Market and TAV Airports Total Passenger Traffic of Turkish Aviation Market by year (mn) CAGR 13% Total Passenger Traffic of TAV Airports by year (mn) CAGR 26% Source : DHMI

12 TAV Traffic Performance Passenger In 2010 (January November Period) ATM TAV Total Passenger 44 Million 13% 13% Istanbul Ataturk Airport Int l Passenger 18.8 Million TAV Total Air Traffic Movement 380 Thousand 11% 10% 10% TAV Passenger Figures (Milllion) TAV Air Traffic Movements ( 000) Airports 2008* 2009* 08/09 (%) Jan- Nov09 Jan- Nov10 Istanbul Ataturk % 27,5 29,7 8% Int l % 16,9 18,8 11% Dom % 10,5 10,9 4% Ankara Esenboga % 5,5 7,1 28% Int l % 1,0 1,2 22% Dom % 4,5 5,9 29% Izmir A.Mend. (int l) % 1,6 2,1 30% Monastir Airport(ınc. Enfidha) % 3,7 3,82 3% Georgia (inc. Batumi) % 0,71 0,84 18% Macedonia(Skopje&Ohrid)** 0,70 0,64-9% 0,6 0,67 14% TAV Total *** % 39,0 44,2 13% Int l % 23,9 27,4 15% Dom % 15,1 16,8 11% % Airports 2008* 2009* 08/09 (%) Jan- Nov09 Jan- Nov10 Istanbul Ataturk % 243,4 247,2 2% Int l % 155,2 161,1 4% Dom % 88,2 86,2-2% Ankara Esenboga % 46,5 57,9 25% Int l % 9,2 10,9 18% Dom % 37,3 47,1 26% Izmir A.Mend. (int l) ,1 0% 12,4 15,6 26% Monastir Airport(Inc. Enfidha) % 29,5 30,7 4% Georgia (inc. Batumi) % 14,3 17,0 19% Macedonia(Skopje&Ohrid)** 14,3 12,8-10% 11,8 11,78 0% TAV Total *** % 346,1 380,3 10% Int l % 218,9 245,1 12% Dom % 127,3 135,1 6% % Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie,TAV Macedonia * Since 2008 DHMI, passenger figures include transfer passengers ** Operation commencement date: March 01, 2010 *** TAV 2009 traffic figures do not include Macedonia 11

13 Duty Free Performance TAV Duty Free Revenues (, Mn) % % q 2q 3q 4q Duty Free Spend Per Pax ( ) % 9M09 9M10 % ATU Average 15,8 14,7-7% 14,7 13,9-5% 12

14 Customs Law Products* As of Tobacco Products Alcohol - Beverages with more than 22% alcohol such as whiskey and raki - Beverages with less than 22% alcohol such as wine and champaigne Parfume, lotion, essence, cologne, lavender water 2 cartoons of cigarettes OR other tobacco products at their own limits 3 cartoons of cigarettes AND other tobacco products at their own limits 1 Liter OR 1 Liter AND 2 Liters 2 Liters 5 bottles (each bottle can be 120 ml max ) 5 bottles (each bottle can be 120 ml max ) AND 5 packages of skin care products & make-up Chocolate 1 kg AND 2 kg OR Sugar Products 1 kg 2 kg * The table does not include all products covered under Customs Law, but includes high importance products for ATU 13

15 Earnings Visibility Aviation Non-Aviation Pax service charge (PSC) Agreed passenger service charge of airports / terminals depending on project Ankara and Izmir have revenue guarantees (fixed PSC and volume growth p.a.) Passenger growth is the main driver Duty Free Duty Free available to all international inbound and outbound passengers Increased number of shops, improved selection of products and higher penetration Airside Revenues Bridge, check-in counter, parking, apron, taxi etc ATM growth is the main driver Ramp, passenger services and traffic Other Catering, car park, advertising, area allocation, lounge services Ground handling ATM growth and aircraft type are the main drivers Notes: Passenger service charges apply to departing passengers only 14

16 Concession Overview Airport Type/Expire TAV Stake Scope 2009 Pax(mppa) fee/pax Int'l fee/pax dom. Volume Guarantee Concession Fee Net Debt* Istanbul Ataturk Ankara Esenboga Concession (Jan. 2021) BOT (May 2023) 100% Int'l+Dom. 29,8 US$15, 5 (Transfer) 100% Int'l+Dom. 6, No 0,6 M. Dom., 0,75 Int'l for 2007+%5 p.a $140m/yr + VAT 237m - 108m Izmir A.Menderes BOT (Jan. 2015) 100% Int'l 1, m Int l for %3 p.a. - 31m Gazipasa Concession (July 2034) 100% Int'l+Dom. - 5 TL4 No $ VAT 16m Tbilisi BOT (Feb. 2027) 66% Int'l+Dom. 0,7 US$22 US$6 No - 24m Batumi BOT (Aug. 2027) 60% Int'l+Dom. 0,07 US$12 US$7 No - - Monastir&Enfidha BOT+Concession (May 2047) 67% Int'l+Dom. 3,8 9 9 No 11-26% of revenues from 2010 to m Skopje & Ohrid BOT+Concession (March 2030) 100% Int'l+Dom. 0, in Skopje, 16.2 in Ohrid - No 15% of the gross annual turnover ** 9m (*) As of 30 September 2010, ** The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers TAV Gazipaşa shall make a yearly rent payent of US$ 50,000 + VAT as a fixed amount, until the end of the operation period; as well as a share of 65% of the net profit to the DHMI. 15

17 Operations Map & Potential Projects Riga Int l Airport (with Air Baltic) Saudi Arabia (with Al-Rajhi,Saudi Oger ) *Potential projects are indicated by red dots, as current operations by orange dots Significant traffic growth expected in our target region We define our target region as Middle East, Africa, Europe, the CIS countries including Russia and India Experienced international airport operators will be needed as the infrastructure developments reach completion 16

18 Operational Highlights Antalya Gazipasa and Tunisia Enfidha Airports commenced operations TAV started to collect 5 transfer fee as of Jan in Istanbul Ataturk Airport Traffic Growth Havaş partnered with THY in TGS; and TGS commenced operations at 5 main airports in Turkey as of January 2010 Macedonia started operations in March 2010 New Developments Havas acquired 50% stake in North Hub Services, a ground handling company with aggressive growth plans in Baltics; and NGS commenced operations in Riga and Helsinki 10 th Year Target accomplished: 10 airports under portfolio as of 2010! New target is to serve to 100 pax per annum by % pax growth in 9M10 on top of 3% growth attained in FY09 BTA took over operation of F&B service points at Istanbul Airport Domestic Terminal. Launch of TAV Passport Customs Law Amendment relieved the duty-free purchase limits at International Arrival Terminals We won the tender to operate commercial areas at Riga International Airport 17

19 Financial Highlights Deleveraging completed with lucrative ROEs on stake sales %50 rights issue in Feb 2009 ( 58m) Sale of TAV Tunisie stake to IFC ( 28m) and PAIDF ( 40m) Havaş sale to HSBC and Is Private Equity ( 102m) Capex Final tranche of Enfidha Airport investment of 500 mn completed Minimum maintenance capex needed for the young airport portfolio No mandatory capex requirements in airport operation contracts Deleveraging Completed Dividends Dividends are expected to commence in 2 to 3 years Progressive policy with high payment of free cash flow 18

20 TAV Airports Overview 1 Page TAV Airports Financial Overview 19 TAV Airports Operations 29 Conclusion 48 19

21 Financial Overview (in mn )* y-o-y 9M10 9M09 y-o-y Revenues % % EBITDA % % EBITDA margin 22% 26% 4 ppt 29.0% 27.9% 1.1 ppt Net Income (Loss) % % Cash flow from operations % % Capex % % Free Cash Flow nm nm Shareholders Equity % % Net Debt % % Average number of employees % 17,090 12,204 40% Number of passengers (mn) 40,9 42,1 3% % - International 25,0 25,7 3% % - Domestic 15,9 16,4 3% % Duty free spend per pax ( ) 15,9 14,9-6% % * Construction revenue and construction expenditure are excluded while computing the operational performance in the table. ** Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir Consolidated Revenue ( m) EBITDA ( m) Net Profit ( m) 484 % % % M09 9M10 9M09 9M10 9M09 9M10 * Adjusted by including guaranteed pax fee revenues 20

22 Revenue & EBITDA Revenue breakdown (9M09) Revenue breakdown (9M10) F&B 6% Other 18% Duty-free 33% F&B 6% Other 18% Duty-free 30% Groundhandling 19% Aviation 25% Groundhandling 20% Aviation 26% EBITDA Breakdown (9M09) EBITDA Breakdown (9M10) HAVAŞ 25% Other Services 10% Istanbul 42% BTA 3% ATU 5% HAVAŞ 16% Other Services 0% Istanbul 46% BTA 4% ATU 9% Other Airports 10% Other Airports 29% 21

23 OPEX Breakdown Q 3Q 3Q FY08 FY09 9M09 9M10 9M09 9M10 D&A 7% Other 14% catering 3% duty-free 11% services rendered 7% Other 16% catering 3% duty-free 10% services rendered 7% D&A 9% Concession 29% Personnel 29% Concession 21% Personnel 34% 22

24 OPEX Breakdown (Excluding concession rent and D&A expenses) Q 3Q FY08 FY09 9M09 9M10 9M09 9M10 catering 3% catering 4% Other 16% duty free 13% Other 23% duty free 15% services rendered 8% services rendered 9% Personnel 34% Personnel 49% 23

25 9M10 Financial Summary Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir TAV Airports Consolidated 9M10 ( million) Revenues EBITDA (*) EBITDA (*) Margin Net Debt Airports % Istanbul % Ankara % Izmir % 31.4 Tunisie % Gazipasa 0.0 (0.8) nm 16.0 Tbilisi & Batumi % 23.7 Macedonia % 9.1 Services % ATU (50%) % 17.0 BTA % (4.1) HAVAŞ % 69.5 Others 43.5 (8.4) nm 41.9 Total % Eliminations (112.3) (0.9) - Consolidated % - Note: Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir 24

26 Revenue by country (9M10) 3% 2% 88% 7% 25

27 CAPEX (million ) Enfidha Airport capex Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 intangible assets airport operation right property and equipment 26

28 Debt Structure NET DEBT ( million) 31 December June September 2010 Airports Istanbul Ankara Izmir Tunisia Gazipasa Tbilisi Batumi 0 (0) (0) Macedonia Services ATU (50%) BTA 2 (4) (4) Havas Others Total

29 Debt Repayment Million, as of September 30, 2010 De-leveraging Rights Issue ( 57m, January 09) TAV Tunisie Sale to IFC ( 28m, August 09) Havaş sale to HSBC - Is Girisim ( 102m, March 10) Havaş Holding ATU TAV Tbilisi TAV Izmir TAV Esenboğa TAV Tunisie TAV Istanbul 551 TAV Tunisie sale to PAIDF ( 39.7m, June 10) Debt on Holding Co. (as of September 30, 2010) ( million) years 2-years 3- years 4- years 5- years 5+ years 1- years 2-years 28

30 TAV Airports Overview 1 Page TAV Airports Financial Overview 19 TAV Airports Operations 29 Conclusion 48 29

31 Turkey Penetration is still quite low with passport ownership at low teens Demographics support further market growth in the long term 2nd most populous country in Europe with a population of 72.6 million Fastest growing and youngest population in Europe 67% of the population is between ages 15-64, while %26 are between 0-14 and only 7% are above 65 years. Turkish Airlines' Star Alliance membership builds Turkey into a regional hub. 3.9 million Turkish immigrants living in Europe offers a resilient traffic flow Ministry of Transport projects 350 million pax by 2023, implying to a CAGR of 11% 30

32 Istanbul Atatürk Airport (100% owned) Largest in the region Main hub and home base for Turkish Airlines One of the fastest growing airport in Europe Revenue of 260 million in 2009 Passenger traffic (m) 28,6 29,8 21,3 23,2 19,3 15,6 12,1 193 million EBITDAR in 2009, implies growth and 74% margin 5 Transfer Fee (from Int l Pax) Terminal Expansion in 2010 Among 50 Best Travel Centers list in Monocle, as a Magnet for Transit Flights. Source: Note: International domestic DHMI 2009 and 2008 are not comparable with previous periods Air Traffic Movement per airline (2009) Domestic International THY(%76) Atlas Jet(%7) Onur Air(%14) Pegasus(%3) THY(%64) Lufthansa(%3) Atlas Jet(%1) Air France(%1) Alitalia(%1) Others(%30) Source: DHMİ 31

33 Ankara Esenboga Airport (100% owned) Newest in the region Secondary hub of Turkish Airlines (THY) Operations commenced in October 16, THY s Ankara based brand Anadolu Jet began to fly in May 2008 In 2009, received Best Airport Award by ACI, in 5-10 million category Passenger traffic (m) Domestic International Source: DHMI Air Traffic Movement per airline (2009) Domestic International THY(%25) Lufthansa(%15) Pegasus(%11) THY(%83) Pegasus(%16) Others(%1) Cyprus Turkish(%9) Others(%40) Source: DHMI 32

34 Izmir Adnan Menderes Airport (100% owned) Passenger traffic (m) Third largest city with the second biggest port in Turkey Major tourist destination Operations commenced in September 13, Diversified customer base Source: DHMI (*) International passengers only Air Traffic Movement per airline (2009) Sun Express(%35) Pegasus(%13) Onur Air(%6) Cyprus Turkish(%6) Others(%39) Source: DHMI 33

35 Georgia Located on the east of Black Sea, Georgia controls most of the trade routes through Caucasus Mountains. Constructions of several oil and gas pipelines such as Baku-Tbilisi-Ceyhan have proved the strategic location of Georgia. Georgian Economy had been one of the fastest growing economies among Former Soviet Union until the dispute with Russia on Abkhazia and South Ossetia. 34

36 Tbilisi International Airport (66% owned) Operations in new terminal commenced in February 7, Capturing almost all air traffic in Georgia Capital city of Georgia with promising business opportunities Capacity: 2.8 million passengers per year Selected as the Best Emerging Airport Russia, CIS and Baltic States Passenger traffic ( 000) Source: Georgian Civil Aviation Authority Air Traffic Movement per airline (2009) GEORGIAN A/W (%24) TURKISH AIRLINES(%18) LUFTHANSA(%8) OTHERS(%50) Source: Georgian Civil Aviation Authority 35

37 Batumi International Airport (60% owned) Passenger traffic ( 000) Operations in the terminal commenced in May 26, Second biggest city of Georgia with strategic importance International Domestic Note: Domestic Passenger numbers included Hopa Terminal Passengers Source: Georgian Civil Aviation Authority Air Traffic Movement per airline (2009) TURKISH AIRLINES(%76) GEORGIAN AIRWAYS(%9) OTHERS(%15) Source: Georgian Civil Aviation Authority 36

38 Tunisia The privatization policies of the Government have pushed the economy forward over the past decade. Tunisia has been getting increasingly popular as a holiday destination. The country, with its charming beaches, attracts around 9.5 million tourists per annum. Has 10.5 million young population, 23% of which is between ages 0-14 and 70% of which is between

39 Monastir International Airport (67% owned)(*) TAV started to operate in January 1, 2008 Passenger traffic (m) Tunisia have potential to be the hub of Africa in near future 90% of travelers (6 million in 2007) visiting Tunisia preferred air transportation TAV Tunisia SA started to provide services for Enfidha Zine El Abidine Ben Ali International Airport since December 2009 Selected as the Best Emerging Airport in Africa, surpassing all other African airports. * TAV sold 15% of shares of TAV Tunisie SA to IFC in and 18% of shares to PAIDF in June Source: TAV Tunisie Air Traffic Movement per airline (2009) TUNIS AIR (%30) NOUVELAIR TUNISIA(%20) KARTHAGO AIRLINES(%6) OTHER (%43) Source: TAV Tunisie 38

40 Macedonia Is an important crossroads of trade in Balkan Region Adoption of visa liberalization for Macedonia in Dec 2009 has freed the traffic between Macedonia and EU member states of 500 million population. On the verge of joining the European Common Aviation Area (ECAA), which will lift the bilateral agreements and boost the air traffic in the region. 39

41 Skopje and Ohrid International Airports (100% owned) We are awarded the tender on September 2, 2008 Passenger traffic ( 000) TAV started to operate Skopje and Ohrid Airports in March 1, 2010 The European Parliament s adoption of the visa liberalization for Macedonia on December 19, 2009 has opened a new era for Macedonian travel. The removals of visa requirements have freed traveling between Macedonia and 25 out of 27 EU member states with 500 million citizens Skopje Ohrid Air Traffic Movement per airline (Skopje-2009) Austrian Airlines (%8) Turkish Airlines (%5) Adria Airways (%11) Malev Airways (%9) Croatia Airlines (%6) Others (%61) 40

42 ATU Duty Free (50% owned) ATU is the sole duty free operator at Istanbul Ataturk(Int l and Domestic Terminal), Ankara, Izmir, Tbilisi,Batumi and Enfidha Competitive concession fee paid to TAV for ATÜoperated shops in Ataturk Airport ATÜ also pursues tenders outside TAV operations Financial Data ( m) * 2008* 2009* Change Total Revenues % EBITDA ,7 0% EBITDA Margin 3.5% 6.4% 9.1% 9,5% - Spend per pax ( ) 15,7 14,8 15,8 14,7-7% Note: Figures imply 100% of ATU Revenue ( m) Spend Per Pax ( )* ,7 15, ,3 14,8 14,8 14,8 14, * 2007,2008 and 2009 duty-free spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only 41

43 BTA Catering Services (67% owned) BTA is the food and beverage operator at Istanbul Ataturk (Int l), Ankara, Izmir, Tbilisi and Batumi, Monastir, Enfidha, Skopje and Ohrid Total revenue increased by 2% in 2009 Concession fees: BTA pays c40% of its revenues to TAV Financial Data ( m) * 2008* 2009* Change Total Revenues ,1 2% EBITDA n.m. EBITDA Margin 8.6% n.m. 6.0% 11% - Spend per pax ( ) % Note: Figures imply 100% of BTA * 2007 and 2008 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only Revenue ( m) Spend Per Pax ( )* 14,9 21,1 29, ,3 58,1 59,1 1,3 1,5 1,9 2,4 1,8 2, * 2007,2008 and 2009 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only 42

44 Havaş Ground Handling (65% owned)* Total revenue of Havas increased by 4% in 2009 Currently operating at 20 airports in Turkey Havaş has been elected by THY as partner in the TGS Ground Handling Services Inc. which commenced its operations as of 01 January, 2010 Havaş purchased 50% shares of North Hub Services as of 12 April, 2010 Financial Data ( m) Change Total Revenues % EBITDA % EBITDA Margin 11.2% 18.7% 23.3% 19.2% - # Aircrafts handled ( 000) % *TAV signed a subscription & shareholders agreement with HSBC Investment Bank Holdings Plc and İş Girişim Sermayesi Yatırım Ortaklığı A.Ş. on 16 October 2009 to establish a new company that TAV has 65% of the shares. The new company will take over the whole shares of Havas. Note: Figures imply 100% of HAVAS Revenue ( m) Aircrafts Handled* ( 000) 84,1 99,5 108,1 120,6 125,9 HAVAŞ ONLY 13% TGS ONLY* 54% HAVAŞ + TGS 32% 85K 75K 100K 65K 184K 140K M10 9M09 9M10 9M09 9M10 9M09 *THY flights served by Havas at Istanbul Ataturk Airport in 9M09 43

45 Havaş & TGS Operation Map İstanbul (AHL,ISG) Zonguldak Sinop Ankara Merzifon/ Amasya Trabzon Sivas İzmir Nevşehir Kayseri Elazığ Muş Bodrum Antalya Konya Adıyaman Urfa Batman Gazipaşa Adana Gaziantep Dalaman 44

46 North Hub Services 45

47 Other Services Other services income mainly contains incomes from maintenance, CIP lounge services, security services and software sales. TAV O&M (100%), incorporated in 2004 Commercial area allocations and maintenance CIP / VIP TAV IT (99%), become a separate entity in 2005 Airport IT services, software and hardware sales Financial Data ( m) Change Total Revenues % EBITDA n.m. EBITDA Margin 17.3% n.m. n.m. 30% - TAV Security (67%), became a separate entity in 2006 Security service provider in Istanbul, Ankara and Izmir, Gazipaşa Note: All periods include TAV Holding, TAV O&M, TAV IT and TAV Security Revenue ( m) Revenue Breakdown ( 2009) 38,8 50,3 54,5 66,1 Holding 39% TAV O&M 39% TAV Security 11% TAV IT 11% 46

48 TAV Airports Overview 1 Page TAV Airports Financial Overview 19 TAV Airports Operations 29 Conclusion 48 47

49 Appendix Share Performance Macro Outlook Traffic Outlook Airports Tourism Revenue Sources Istanbul as a Transit Hub Istanbul Ataturk Traffic Performance Growth rate of Selected Airports Historic Overview Developments in 2009, 2010 Corporate Governance Rating Dividend Policy Management Team Board of Directors IFRIC 21 & Cash Flow Hedge Accounting Consolidated Financial Statemnets Contact IR 48

50 Share Performance (as of December 06, 2010) Closing Price Market Cap(USD) Avg. Daily Volume(USD) Free Float Foreign Ownership 7,36 1,802 13mn 44% 82% 1,4 1,3 1,2 1,1 1,0 0,9 0,8 0,7 0,6 0,5 0,4 0,3 Relative Price ($) TAVHL ($) Relative to ISE-100 Share Price Performance Weekly 1M 3M YTD Since IPO TL 2% -3% 7% 55% -12% USD 3% -9% 8% 56% -18% Relative to ISE % 1% -4% 21% -43% Notes: Share figures in this page was prepared as of December 06,

51 Macro Outlook Estimates Start After CAGR Georgia GDP (USD, bn) % GDP per capita (USD, 000) % GDP based on PPP per capita (int dollars) % Inflation (average, % change) Population (mn) % Latvia GDP (USD, bn) % GDP per capita (USD, 000) % GDP based on PPP per capita (int dollars) % Inflation (average, % change) (1) Population (mn) % Former Yugoslav Republic of Macedonia GDP (USD, bn) % GDP per capita (USD, 000) % GDP based on PPP per capita (int dollars) % Inflation (average, % change) 2 8 (1) Population (mn) % Tunisia GDP (USD, bn) % GDP per capita (USD, 000) % GDP based on PPP per capita (int dollars) % Inflation (average, % change) Population (mn) % Turkey GDP (USD, bn) , % GDP per capita (USD, 000) % GDP based on PPP per capita (int dollars) % Inflation (average, % change) Population (mn) % International Monetary Fund, World Economic Outlook Database, October

52 Traffic Outlook World 5.8% CAGR in RPK World 5.3% CAGR in RPK World % % RPK World 5.3% CAGR in RPK Turkey 11% CAGR in Passengers 51

53 Airports Major Hubs > 25m Passengers Global flagcarrier/alliance High share of transfer traffic Small share of LCC traffic Sustained growth Secondary Hubs 10-25m Passengers Diverse carrier mix Medium share of transfer traffic Growing share of LCC traffic Dynamic Growth Regional Airports 5-10m Passengers Diverse carrier mix Limited transfer traffic LCC traffic up to 50% Sustained growth Small Regional Airports < 5m Passengers Dependence on LCC/ regional carriers No transfer traffic Aggressive growth Source: ACI 52

54 Tourism Tourist Arrivals increased by 9% in 1H10 International Tourist Arrivals by Country 9% Turkey #7 Countries 1H10 1H09 10/09 1H08 09/08 Germany 1,68 1,68 0% 1,83-8% Russia 1,26 1,00 25% 1,18-15% England 1,00 0,85 18% 0,77 12% Iran 0,93 0,53 76% 0,49 7% Bulgaria 0,62 0,64-2% 0,55 16% Georgia 0,45 0,56-19% 0,34 63% Netherlands 0,42 0,41 0% 0,46-10% Syria 0,38 0,18 109% 0,18 2% France 0,37 0,37 0% 0,35 5% Greece 0,29 0,27 8% 0,25 7% Other 4,18 4,10 2% 4,29-4% TOTAL 11,57 10,59 9% 10,69-1% /07 09/08 1-France 77, ,9 80,9 79,2 74,2-2 -6,3 2-USA 51,2 49, ,9 54,9 3,5-5,3 3-Spain 46,4 55, ,7 57,2 52,2-2,5-8,7 4-China 31,2 46,8 49,9 54, ,9-3,1-4,1 5-Italy 41,2 36,5 41,1 43,7 42,7 43,2-2,1 1,2 6-UK 23, ,7 30,9 30,1 28-2,4-7 7-Turkey 9,6 20,3 18,9 22,2 25,0 25,5 12,3 2,0 8-Germany 19 21,5 23,6 24,4 24,9 24,2 1,9-2,7 9-Malaysia 10,2 16,4 17, ,1 23,6 5,1 7,2 10-Mexico 20,6 21,9 21,4 21,4 22,6 21,5 5,9-5,2 World ,1-4,3 Source : Ministry of Culture and Tourism Source :UNWTO 53

55 Revenue sources Passenger Fee Aeronautical Charges Ground Handling Non-aeronautical Charges Landing Parking Fuel Duty Free F&B Car Park Istanbul Turkey Esenboga Izmir Gazipasa Tunisia Enfidha Monastir Georgia Tbilisi Batumi Macedonia Skopje Ohrid BTA started operations in Istanbul Ataturk Airport Domestic Terminal starting from July 2010 ATU will start operations in Monastir starting from July 2014 BTA will start operations in Monastir starting from

56 Istanbul as a Transit Hub Best Transit Hub, (%of Routes) İstanbul AHL Frankfurt Cairo London Dubai Paris Madrid 3 1 Istanbul is the most efficient hub for Europe, MENA Region, according to a study by Bosphorus University Analysis based on cost per ASK and a sample of 4,080 distinct O&D pairs Comparison of 7 existing and emerging hubs: London, Paris, Frankfurt, Dubai, Cairo, Madrid and Istanbul Source: Determining Hub Efficiency in Europe, MIiddle East and North Afirca a comparative study, E. Nur Günay, Şükrü Nenem 55

57 Istanbul Ataturk Airport Traffic Performance Airport Code Passengers Change 1 1 Atlanta ATL 88,4-1,8% 2 3 London LHR 66,0-1,5% 4 2 Beijing PEK 65,3 16,8% 5 4 Chicago ORD 64,4-8,8% 6 5 Tokyo HND 61,9-7,2% 7 6 Paris CDG 57,9-4,9% 8 7 Los Angeles LAX 56,5-5,5% 9 9 Dallas-FortWorth DFW 56,1-1,8% Frankfurt FRA 50,9-4,7% Detroit DTW 31,6 13,1% Seattle SEA 31,2-3,0% Philedelphia PHL 30,7-3,7% Toronto YYZ 30,4-6,1% Istanbul (AHL) IST 29,8 4,2% Kuala Lumpur KUL 29,7 7,8% Seoul ICN 28,6-4,8% Barcelona BCN 27,3-9,7% Boston BOS 25,5-2,3% Delhi DEL 25,3-2,3% Paris ORY 25,1-4,2% Source: ACI 56

58 Growth Rates of Pax Number in Selected Airports 2009 TAV Airports Fraport World 3 Aeroports de Paris BAA Europe AENA Schiphol % TAV 3% M10 TAV Airports Fraport World AENA Europe Schiphol 13 Aeroports de Paris BAA % 9 TAV 13% Source: ACI -3 57

59 Historic Overview Established under the name of Tepe Akfen Vie Yatirim Yapim ve Isletme A.S. TAV successfully tendered for BOT project for Istanbul Atatürk Airport (Concession deadline May 7, 2004) BTA was founded May 2004 BTA started operating the Istanbul International Airport Hotel August 2004 Executed the BOT agreement for Ankara Esenboğa International Airport (right to operate through mid-2023) September 2004 TAV O&M incorporated March 2006 TAV Security became a separate entity August 2006 Name changed to TAV Havalimanlari Holding A.S. September 2006 Completed the construction of Izmir Adnan Menderes Airport s international terminal October 2006 Ankara Esenboğa s new domestic and international terminals completed January 2008 TAV started operating Monastir Airport March 2008 TAV Istanbul refinancing April 2008 TAV Tunisie signed project financing agreement September 2008 TAV is awarded the tender for Macedonian Airport Infrastructure Development January 2000 ATÜ began operations International terminal building completed c.8 months ahead of schedule June 2000 Concession agreement extended through to 2 nd July 2005 in return for a 30% enlargement of the int l terminal June 2005 TAV won the tender for Ataturk Airport to operate for 15.5 years (through 2 nd Jan 2021) July 2005 TAV acquired 60% of Havaş shares TAV obtained control of the BOT for Izmir Adnan Menderes Airport (right to operate through Jan 2015) through the acquisition of Havaş August 2005 TAV IT became a separate entity September 2005 TAV Urban Georgia LLC won the BOT tender for the Tbilisi Airport (10.5 years operating contract) with a 9.5-year extension granted in return for the re-development of the Batumi Airport February 2007 IPO: TAV Havalimanlari Holding offered million of its shares to public March 2007 TAV won the tender to operate Monastir and Enfidha Airports in Tunisia for 40 years May 2007 TAV started to operate Batumi Airport July 2007 TAV acquired remaining 25% of TAV Esenboga and 5% of TAV Izmir August 2007 TAV is awarded the tender of Antalya-Gazipasa Airport November 2007 TAV increased its stake in Havaş to 100% from 60% 58

60 Developments in 2009 January March May July September November 2009 February April June August October December 30 January - 13 February 2009 The shareholders exercised their pre-emptive rights stemming from the 50% rights issue for 15 days 02 March 2009 The consortium by TAV Airports and Skonto Buve LTD has been elected for the partnership with the SJSC Riga International Airport Management. 30 June 2009 The agreement regarding the sale of 15% of shares of TAV Tunisie SA to International Finance Corporation (IFC) is signed by the parties. 06 July 2009 The negotiations with the potential investors have been started regarding the sale of minority shares up to 40% of Havaş. 13 July 2009 Antalya Gazipaşa Airport wholly owned by TAV Airports Holding Co., via a lease of June years, 2009 is opened The to agreement receive flights. regarding the sale of 15% of shares of TAV Tunisie SA to International Finance Corporation (IFC) is signed by the parties. 27 August 2009 New effective date of Macedonia concession contract is determined as March 1, August 2009 The partnership within TGS Yer Hizmetleri A.Ş. by the joint venture contract signed between HAVAŞ and Turkish Airlines is approved by the Competition Board. 59

61 Developments in 2009 January March May July September November 2009 February April June August October December 06 October 2009 SJSC Riga Int.Airport Tender is cancelled due changing economic conditions in Latvia. Our Company started partnership negotiations with Air Baltic to operate a new Terminal in Riga Airport 16 October - TAV signed a subscription & shareholders agreement with HSBC Investment Bank Holdings Plc and Is Girisim Sermayesi Yatirim Ortakligıi A.Ş. on 16 October 2009 to establish a new company ( the New Company ) as per the laws of the Republic of Turkey that our Company (TAV Airports Holding, TAV Operational Services, TAV IT Services) has 65% of the shares, HSBC Investment Bank Holdings has 28,33% and İş Girişim Sermayesi Yatırım Ortaklığı A.Ş. has 6,66% of the shares. The new company will take over the whole shares of Havas. 09 November 2009 A Joint Venture Agreement is signed between TAV Airports Holding Co.and AL-RAJHI Holding Group which is established and has been operating in the Kingdom of Saudi Arabia. 60

62 Developments in 2009 January March May July September November 2009 February April June August October December 07 December 2009 TAV Tunisie SA started to provide services for Enfidha Zine El Abidine Ben Ali International Airport 10 December 2009 We have received the approval of the Competition Authority regarding the transfer of Havas shares. 61

63 Developments in 2010 January March May July September November 2010 February April June August October December 25 January 2010 Our company has received preliminary qualification to place a bid for the Male Airport tender 1 March 2010 TAV Macedonia DOOEL has taken over operations of the airports in Macedonia, Alexander the Great in Skopje and St. Paul the Apostle in Ohrid, as of March 1, March 2010 An agreement concerning the sale of 18% minority shares of TAV Tunisie SA for 39,690,000 to the Pan African Infrastructure Development Fund has been signed. 18 March 2010 A our company (TAV Airports Holding Co., TAV Operations Services Co., TAV IT Services Co.) possesses a 65% share, HSBC Investment Bank Holdings Plc a % share and Is Private Equity Investment Trust Inc. has a % share in Havaş Airports Ground Handling Investment Trust Co. 62

64 Developments in 2010 January March May July September November 2010 February April June August October December 131 April 2010 Havas Our purchased company has 50% decided shares of tonhs cooperate for 3,250,000 with another in total. pre-qualified candidate, Aeroports de Paris Management (ADPM), a subsidiary of Aeroports de Paris (ADP), in Male International Airport project. 9 June 2010 TAV Airports Holding has signed a Memorandum of Understanding ("MOU") with the the Latvian national airline AirBaltic. 14 June 2010 The consortium formed by TAV Airports Holding, Saudi Oger Ltd., Al Rajhi Holding Group, and Consolidated Contracting Company (CCC) have got the preliminary qualification for Medina Int l Airport tender. 30 June A Memorandum of Understanding ("MOU") has been signed among TAV Airports Holding Co., Sigma Group/PT Wira Cipta Sukses from Indonesia and the Indonesian Government 63

65 Developments in 2010 January March May July September November 2010 February April June August October December 11July April BTA Our tookcompany over the has operations decidedof to 5 F&B cooperate servicewith points another (Kantin, pre-qualified Beerport, Kokpit candidate, Cafe, Kokpit Aeroports Brasserie, de Paris Botanik Management Cafe) at the (ADPM), Istanbul a Ataturk subsidiary Airport of Aeroports Domestic Terminal de Paris from (ADP), USAŞ in Male Uçak Servisi International A.Ş. as Airport of July project. 1st, With the take-over, BTA s service points increased to August The Corporate Governance Grade of our Company which was rated as 83.3 (8.5) on was revised upwards to (9.0) as of , owing to the importance given to Corporate Governance and consistent practice besides consideration of continuous betterment and improvement activities of our Company. 6 September 2010 With the amendment in Customs Law (#4458), Article #134 of, effective as of September 6, 2010, restrictions applied to products which can be brought from abroad has been relieved. Accordingly, maximum purchase limits applied to arriving international passengers have also changed with the amendment, as ATU s sales at international arrival terminals is subject to Customs Law. 27 September 2010 We became the preferred bidder in the tender held by SJSC Riga International Airport Management regarding the operations of the commercial areas (Duty-Free, Food and Beverage, Lounges, Exchange Offices, etc.) within Riga Airport. 64

66 Corporate Governance Rating The Corporate Governance Rating Report for TAV Airpors made by RiskMetrics Group - Institutional Shareholder Services (ISS), a global corporate governance rating company having the official authorization to do rating in accordance with the Capital Markets Board (CMB) Corporate Governance Principles in Turkey. Our company is rated with the grade (9,0) in general average as per Corporate Governance Rating Report. Final rating grades are determined by the separate weighting of four sub-categories within the frame of the related resolution of CMB. The breakdown of corporate governance rating grades is stated below. Sub-categories Weight Grade Grade assigned Shareholders ,05 9,0 Public Disclosure and Transparency ,26 9,0 Stakeholders ,54 9,5 Board of Directors ,40 8,5 Total ,03 9,0 65

67 Dividend Policy Under Turkish law, the distribution of profits and the payment of an annual dividend in respect of the preceding financial year is recommended by our Board each year for approval by the shareholders at the annual general meeting, which must be held within three months following the end of the preceding fiscal year. Dividends are payable on a date determined at the annual general meeting of shareholders or on a date to be determined by the Board if the general meeting of shareholders authorises the board to make such a decision. Pursuant to the requirements of the CMB, listed companies should distribute dividends on a date no later than the end of the fifth month following the end of the preceding fiscal year. Distribution of dividends by listed companies can be made in the form of cash or bonus shares, or a combination of both. Each share entitles its holder to the amount of dividend corresponding to its shareholding. TAV Airports Holding has not distributed any dividends to shareholders, yet. Although TAV Airports recorded a net profit in its 2009 financials, it did not distribute any dividends to its shareholders due to accumulated loss in the TR-GAAP financials. 66

68 Management Team CEO Dr. Sani Şener Senior Management Murat Uluğ Serkan Kaptan Özlem Tekay Altuğ Koraltan Deniz Aydın Murat Örnekol Haluk Bilgi Waleed Youssef Ersagun Yücel Banu Pektaş Airport GMs Kemal Ünlü Erkan Balcı Nuray Demirer Ersel Göral Mete Erkal Service Companies GMs Ersan Arcan Sadettin Cesur Müjdat Yücel Levent Güler Binnur Onaran Eda Bildiricioğlu Positions within TAV Airports Chief Executive Officer (CEO) Chief Financial Officer (CFO) Business Development Director Human Resources Director Internal Audit Director Financial Affairs Director Operations Director Business Development Director (Subsidiaries) Strategy Director General Secretary Legal Counsel GM, TAV Istanbul GM, TAV Izmir GM,TAV Esenboga GM, TAV Tunisie GM, TAV Georgia GM, ATU GM, BTA GM, HAVAS GM Deputy, TAV Security GM, TAV IT GM, TAV O&M 67

69 Board of Directors Board Member Hamdi Akın (Chairman) Ali Haydar Kurtdarcan (Vice Chairman) Dr. Sani Şener (Member and CEO) İbrahim Süha Güçsav (Member) Abdullah Atalar (Member) Önder Sezgi (Member) Ahmet Ersagun Yücel (Member) Dr. Cem Kozlu (Independent Board Member) Pierre de Champfleury ( Independent Member ) Positions within TAV Airports and other Companies Chairman of Akfen Holding Chairman of Tepe Construction Ind. Inc. CEO of TAV Airports CEO of Akfen Holding Vice Chairman of Bilkent Holding Financial Affairs and Audit Director of Bilkent Holding General Secretary of TAV Airports Independent Board Member Independent Board Member 68

70 IFRIC 12 IFRIC 12 is a new application regarding to interpretation of most of existing standards in the IFRS for example, IAS 11-Construction Contracts, IAS 16-Property Plant and equipment, IAS 17-Leases, IAS 36-Impairment of Assets and IAS 38-Intangible Assets. IFRIC 12 Service Concession Arrangements was developed by the International Financial Reporting Interpretations Committee. Effective date of the application is 1 January TAV Airports adopted IFRIC 12 in the consolidated financial statements for the first time as of 31 March 2008 retrospectively. IFRIC 12 affects P&L in terms of the decrease in aviation income (for the guaranteed passenger fees) and depreciation expenses while the increase in financial income in accordance with such interpretation. BOT assets are classified as airport operation right and trade receivable in the consolidated financial statements. It means the operator (TAV Airports) should account these investments as cost and book construction revenue (if a mark-up on costs) on its financials instead of investments according to the completion of infrastructure throughout the construction periods. Mark-up rates for TAV Izmir, TAV Esenboga, TAV Tbilisi, TAV Tunisia and TAV Gazipasa, which are in the application of IFRIC 12 are assessed by the management as 0%, 0%, 15%, 5% and 0% during the application periods, respectively. The remaining discounted guaranteed passenger fee to be received from DHMİ according to the agreements made for the operations of Ankara Esenboga Airport and Izmir Adnan Menderes Airport is represented as guaranteed passenger fee receivable in the balance sheet as a result of IFRIC 12 application. 69

71 IFRIC 12 The effect of adoption of IFRIC 12 Balance Sheet (Assets) Airport operation right Trade receivables Build-operate-transfer ( BOT ) Investment Added Increase Removed Income Statement Construction revenue Construction expenditure (-) Aviation income Discount interest income Depreciation and amortisation expense (-) Added Added Decrease (guaranteed pax fees) Added Decrease 70

72 Cash Flow Hedge Accounting Subsidiaries, TAV Istanbul, TAV Esenboga, TAV Izmir and TAV Tunisie enter into swap transactions in order to diminish exposure to foreign currency mismatch relating to DHMI installments and interest rate risk to manage exposure to the floating interest rates relating to loans used. 100%, 68% and 100% of floating bank loans for TAV Istanbul, TAV Izmir and TAV Esenboga, respectively are fixed with financial derivatives, 100% of floating senior bank loans for TAV Tunisie is fixed with financial derivative until 31 October 2009 and 85% of floating senior bank loans for TAV Tunisie is fixed with financial derivative starting from 1 November Sensitivity Analysis A 10 percent strengthening/weakening of the EUR against the following currencies at 30 September 2010 and 31 December 2009 would have increased/decreased equity and profit/loss by the amounts shown below, This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for FY09. Based on the Group s current borrowing profile, a 50 basis points increase in Euribor or Libor would have resulted in additional annual interest expense of approximately EUR 2.8 million on the Group s variable rate debt when ignoring effect of derivative financial instruments. EUR 2.3 million of the exposure is hedged through IRS contracts. Therefore, the net exposure on income statement would be EUR 0.5 million. A 50 basis points increase in Euribor or Libor would have resulted an increase in hedging reserve in equity approximately by EUR 27.9 million and a 50 basis points decrease in Euribor or Libor would have resulted an decrease in hedging reserve in equity approximately by EUR 29.1 million. Equity Profit or loss Strengthening Weakening Strengthening Weakening of EUR of EUR of EUR of EUR 30-Sep-10 USD (31.4) 29.6 (4.7) 4.7 TRL - - (6.4) 6.4 Other (0.9) Total (31.4) 29.6 (10.2) Dec-09 USD (26.0) 31.8 (0.2) 0.2 TRL - - (4.7) 4.7 Other - - (1.5) 1.5 Total (26.0) 31.8 (6.5)

73 Consolidated Income Statement Construction revenue 14,9 248,8 Total operating income 568,5 463,5 Sales of duty free goods 120,0 106,3 Aviation income 129,9 101,2 Ground handling income 121,4 89,8 Commission from sales of duty free goods 56,9 51,7 Catering services income 34,5 27,7 Other operating income 105,8 86,8 Construction expenditure (14,7) (237,2) Operating expenses 0,0 0,0 Cost of catering inventory sold (12,9) (10,2) Cost of duty free inventory sold (48,2) (42,5) Cost of services rendered (30,7) (25,0) Personnel expenses (158,9) (110,9) Concession rent expenses (95,3) (109,0) Depreciation and amortization expense (43,5) (27,5) Other operating expenses (75,3) (51,0) Operating profit 104,0 99,0 Finance income 16,7 13,0 Finance expenses (67,0) (60,0) Profit before income tax 53,7 52,0 Income tax expense (14,3) (16,7) Profit for the period from continuing operations Attributable to: Owners of the Company 33,5 33,8 Non-controlling interest 5,9 1,5 39,4 35,3 Other Financial Data: Adjusted EBITDA * 172,5 135,1 Adjusted EBITDAR * 267,8 244,1 Summary Cash Flow Data: Net cash provided by (used in): Operating activities 151,4 111,9 Investing activities 68,5 (233,6) Financing activities (225,0) 144,8 Summary Balance Sheet Data: Cash and cash equivalents 30,1 34,0 Restricted bank balances 317,1 313,8 Total assets 2,037,4 1,923,1 Bank loans 1,237,7 1,288,7 Total liabilities 1,526,3 1,510,1 Total equity 511,1 413,0 Net debt 890,5 940,8 9M10 9M09 72

74 Consolidated Balance Sheet 9M10 FY09 ASSETS Property and equipment 155,656, ,527,566 Intangible assets 38,292,276 41,320,152 Airport operation rights 712,693, ,041,011 Other investments 24,238 24,238 Goodwill 154,561, ,402,835 Prepaid concession expenses 110,878, ,413,971 Trade receivables 118,972, ,457,502 Other non-current assets 2,181,418 8,930,598 Deferred tax assets 70,174,999 54,254,039 Total non-current assets 1,363,434,849 1,338,371,912 Inventories 13,355,829 11,403,317 Prepaid concession expenses 125,406, ,275,560 Trade receivables 88,802,301 62,044,641 Due from related parties 31,704,594 10,482,379 Derivative financial instruments 26,715,924 6,390,781 Other receivables and current assets 40,674,902 29,287,322 Cash and cash equivalents 30,129,215 34,010,922 Restricted bank balances 317,138, ,849,601 Total current assets 673,927, ,744,523 TOTAL ASSETS 2,037,362,599 1,923,116,435 73

75 Consolidated Balance Sheet EQUITY Share capital 162,383, ,383,978 Share premium 220,286, ,286,470 Legal reserves 19,494,019 18,385,795 Other reserves 14,622,932 - Revaluation surplus 2,068,119 2,324,325 Purchase of shares of entities under common control 40,063,860 40,063,860 Cash flow hedge reserve (73,391,130) (59,776,657) Translation reserves 1,659,210 (2,056,517) Retained earnings / (Accumulated losses) 22,953,397 (9,168,016) Total equity attributable to equity holders of the Company 410,140, ,443,238 9M10 FY09 Non-controlling interest 100,965,576 40,555,777 Total Equity 511,106, ,999,015 74

76 Consolidated Balance Sheet LIABILITY ( Million) 9M10 FY09 Loans and borrowings 1,061,947,300 1,089,524,346 Reserve for employee severance indemnity 6,614,845 4,645,483 Due to related parties 19,249,243 19,082,385 Deferred income 18,940,930 14,339,463 Deferred tax liabilities 6,133,945 7,335,962 Total non-current liabilities 1,112,886,263 1,134,927,639 Bank overdraft 3,575,458 2,379,933 Loans and borrowings 172,215, ,758,985 Trade payables 29,290,482 29,306,087 Due to related parties 8,668,333 12,285,718 Derivative financial instruments 141,246,256 85,400,809 Current tax liabilities 4,387,084 1,391,675 Other payables 43,985,536 39,264,452 Provisions 3,297,820 2,695,918 Deferred income 6,703,336 5,706,204 Total current liabilities 413,369, ,189,781 Total Liabilities 1,526,256,168 1,510,117,420 TOTAL EQUITY AND LIABILITIES 2,037,362,599 1,923,116,435 75

77 Consolidated Cash Flow Statement CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period 39,407,452 35,290,398 Adjustments for: Amortisation of airport operation right 24,646,701 14,208,889 Depreciation of property and equipment 14,742,929 9,861,449 Amortisation of intangible assets 4,072,926 3,400,137 Amortisation of prepaid concession rent 95,341, ,001,339 Provision for employment termination benefits 3,075,370 2,106,376 Provision set for doubtful receivables 334, ,438 Provision set for tax penalties - 972,275 Other provisions released (179,028) (13,261) Gain on sale of non-controlling interest in a subsidiary - (8,993,461) Discount on receivables and payables, net 34, ,920 Gain on sale of property and equipment (367,936) (59,798) Impairment of property and equipment 6,638,910 - Provision set for unused vacation 651, ,936 Provision set / (released) for slow moving inventory 61,692 14,387 Accrued insurance income (8,923,823) - Other income accrual (9,450,966) - Interest income (8,598,002) (8,143,081) Interest expense on financial liabilities 55,456,812 35,119,148 Income tax expense 14,318,236 16,666,950 Discount income from concession receivable (7,973,726) (4,775,899) Unrealised foreign exchange differences on statement of financial position items 13,487,795 18,674,203 9M10 9M09 Cash flows from operating activities 236,777, ,482,345 Change in trade receivables (27,113,041) (20,007,380) Change in non-current trade receivables 23,458,635 21,162,915 Change in inventories (2,014,144) (1,793,481) Change in due from related parties (21,222,215) (1,796,901) Change in restricted bank balances 86,415,176 57,239,724 Change in other receivables and current assets 14,465,621 25,206,832 Change in trade payables (9,504,080) 2,536,730 Change in due to related parties (3,450,526) (48,374,147) Change in other payables and provisions 10,319,683 4,870,382 Change in other long term assets 7,868,769 1,250,361 Additions to prepaid concession expenses (97,461,768) (104,458,367) Cash provided from operations 218,539, ,319,013 Income taxes paid (19,632,391) (6,498,534) Interest paid (46,001,706) (41,165,144) Retirement benefits paid (1,540,572) (733,524) Net cash provided from operating activities 151,364, ,921,811 76

78 Consolidated Cash Flow Statement 9M10 9M09 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 4,942,989 7,615,708 Proceeds from sales of non-controlling interest in subsidiaries 141,668,682 27,999,826 Proceeds from sale of property and equipment and intangible assets 2,242, ,602 Acquisition of property and equipment (61,208,084) (20,501,080) Additions to airport operation right (15,211,456) (234,710,210) Net change in investments - (13,799,449) Acquisition of joint venture net of cash acquired (3,241,766) - Acquisition of intangible assets (644,533) (559,242) Net cash provided from / (used in) investing activities 68,548,017 (233,613,845) CASH FLOWS FROM FINANCING ACTIVITIES New borrowings raised 121,535, ,617,978 Repayment of borrowings (191,241,082) (154,281,617) Change in restricted bank balances (100,275,409) (59,536,934) Non-controlling interest change (59,538,367) (4,045,669) Change in revaluation surplus and translation reserves 3,715,727 (453,422) Addition to / (repayment of) finance lease liabilities 813,402 (99,513) Increase in share premium - 103,989 Increase in share capital - 57,473,711 Net cash (used in) / provided from financing activities (224,989,751) 144,778,523 NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS (5,077,232) 23,086,489 CASH AND CASH EQUIVALENTS AT 1 JANUARY 31,630,989 20,727,590 CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER 26,553,757 43,814,079 77

79 TAV Investor Relations For further information, please visit or call (x2120) TAV Airports Holding Co. Istanbul Ataturk Havalimanı Dış Hatlar Terminali Yesilkoy, Istanbul Nursel İLGEN, CFA Head of Investor Relations Tel : / 2122 Fax : Burcu GÜNHAR Investor Relations Associate burcu.gunhar@tav.aero Tel : / 2124 Fax : Besim MERİÇ Investor Relations Associate besim.meric@tav.aero Tel : / 2123 Fax :