TAV Airports Holding Analyst Day

Transcription

1 TAV Airports Holding Analyst Day Istanbul, August 10,

2 Page Overview 1 Financial Overview 19 Operations 29 Conclusion 50 1

3 TAV Airports Structure TAV Airports Holding Co. Airport Companies Service Companies Ataturk Airport (100%) ATÜ (50%) Esenboga Airport (100%) BTA (67%) Adnan Menderes Airport (100%) Gazipasa Airport (100%) Tbilisi (%66) & Batumi (60%) Monastir & Enfidha Airport (67%) HAVAS (65%) TAV O&M (100%) TAV IT (97%) 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 1H10 / 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%) 212m/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 76m/145m BTA (67%) Operating in Turkey, Georgia, Macedonia and Tunisia Operates Istanbul Airport Hotel (131 rooms) Bakery & pastry factory serving in Turkey 33m/59m O&M, IT and Security TAV O&M (100%): Commercial area allocations & CIP/VIP,travel agency services TAV IT (97%): Airport IT services (FIDS,FMS,etc) TAV Security (67%): Security service provider in Istanbul, Ankara, Izmir and Gazipasa 28m/66m 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 (e.g. 50% of ATÜ revenues, 60% of TAV Georgia for whole period) (before eliminations) *TGS started operations as of 1 January 2010 Havaş (65%) Major groundhandler in Turkey with a c.57% (4) share Operates in 20 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 72m/126m 3

5 Ownership Structure (as of July 31, 2010) Shareholder Structure Founding Shareholders 1. Tepe Insaat Sanayi A.Ş. (5) 39,84% (1) 26,06% 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) 3,52% (3) 4,46% (2) 26,12% 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 1,964,103 (0.54%) 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 over 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 the Alexander the Great Airport in Skopje, the St. Paul the Apostle Airport in Ohrid for 20 years. 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 Diversified Portfolio 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 7

9 Turkish Aviation Market Turkish Aviation Market has grown rapidly ( ) Int l and Dom Pax.(Mn.) 50 Tourist Arrivals Int'l Pax Dom. Pax CAGR :%8 CAGR :%23 CAGR :%11 Tourist Arrivals (Mn.) 40, ,3 27,1 35,0 30, ,3 14,0 17,5 21,1 19,8 23,3 25,0 20,0 15,0 10, ,0 Deregulation of the domestic market in rd largest country in Europe population: 72.5m** Limited alternative transport infrastructure In 2009, foreign visitors reached 27m*** Source: DHMI,,**Turkstat, ***Ministry Culture and Tourism 8

10 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

11 Growth Rates of Pax Number in Selected Airports 2009 TAV Airports Fraport World Aeroports de Paris BAA Europe AENA Schiphol % 3 TAV 3% H10 TAV Airports Fraport World AENA Europe Schiphol Aeroports de Paris BAA % TAV 13% Source: ACI -6 10

12 Istanbul Ataturk Airport Traffic Performance International Passenger Growth (%) 1H10 / 1H / /10 Istanbul Ataturk 10% -7% Frankfurt(FRA) % -8% -8% London Heatrow(LHR) Vienna (VIE) Madrid(MAD) -8% Paris (CDG) 1-10% Amsterdam(AMS) 1Q 2Q 3Q 4Q 12M -15% -10% -5% 0% 5% 10% 15% Source: ACI 11

13 Istanbul as a Transit Hub Best Transit Hub, (%of Routes) İstanbul AHL Frankfurt Kahire Londra Dubai Paris Madrid 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 12

14 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 13

15 TAV Traffic Performance Passenger In 2010 (January June Period) ATM TAV Total Passenger 21,3 Million 13% 13% Istanbul Ataturk Airport Int l Passenger 9,3 Million TAV Total Air Traffic Movement 188,9 Thousand 13% 9% 9% TAV Passenger Figures (Milllion) TAV Air Traffic Movements ( 000) Airports 2008* 2009* 08/09 (%) Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie,TAV Macedonia * Since 2008 DHMI, passenger figures include transfer passengers Jan- Jun09 Jan- Jun10 Istanbul Ataturk % 13,62 14,96 10% Int l % 8,19 9,28 13% Dom % 5,42 5,67 5% Ankara Esenboga % 2,83 3,50 24% Int l % 0,45 0,53 17% Dom % 2,38 2,97 25% Izmir A.Mend. (int l) % 0,63 0,78 23% Monastir Airport(ınc. Enfidha) % 1,41 1,36-3% Georgia (inc. Batumi) % 0,31 0,35 13% Macedonia(Skopje&Ohrid)** 0,70 0,64-9% 0,27 0,30 13% TAV Total *** % 18,80 21,25 13% Int l % 10,99 12,60 15% Dom % 7,81 8,66 11% % Airports 2008* 2009* 08/09 (%) Jan- Jun09 Jan- Jun10 Istanbul Ataturk % 125,2 128,0 2% Int l % 79,6 83,5 5% Dom % 45,6 44,6-2% Ankara Esenboga % 23,7 28,5 20% Int l % 4,2 5,0 19% Dom % 19,5 23,4 20% Izmir A.Mend. (int l) ,1 0% 5,1 6,4 27% Monastir Airport(Inc. Enfidha) % 12,0 12,1 0% Georgia (inc. Batumi) % 6,9 7,9 15% Macedonia(Skopje&Ohrid)** 14,3 12,8-10% 5,8 5,9 3% TAV Total *** % 172,6 188,9 9% Int l % 106,7 120,2 13% Dom % 65,8 68,7 4% ** Operation commencement date: March 01, 2010 *** TAV 2009 traffic figures do not include Macedonia % 14

16 Duty Free Performance TAV Duty Free Revenues % 74 % Q 2Q 3Q 4Q Duty Free Spend Per Pax ( ) /09 % 1H09 1H10 % ATU Average 15,7 14,8 15,8 14,7-7% 15,5 14,6-6% Istanbul Ataturk 15,8 16,0 17,1 15,7-8% 16,5 16,0-3% Ankara Esenboga 9,9 11,6 13,4 13,7 2% 14,7 14,2-3% Izmir Adnan Menderes 15,5 11,6 11,5 10,7-7% 10,8 10,9 0% 15

17 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 16

18 Operations Map & Potential Projects Riga Int l Airport (with Air Baltic) Saudi Arabia (with Al-Rajhi,Saudi Oger and CCC) *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 17

19 TAV Airports Overview 1 Page TAV Airports Financial Overview 19 TAV Airports Operations 29 Conclusion 50 18

20 Financial Overiew (in mn )* y-o-y 1H10 1H09 y-o-y Revenues % % EBITDA % % EBITDA margin 22% 26% 4 ppt 24.3% 20.1% 4.2 ppt Net Income (Loss) % 6.9 (2.5) nm Cash flow from operations % % Capex % % Free Cash Flow nm 4.9 (193.6) nm Shareholders Equity % % Net Debt % % Average number of employees % 16,011 11,775 36% 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 / Loss( m) 280 % % H09 1H10 1H09 1H10 1H09 1H10 * Adjusted by including guaranteed pax fee revenues 19

21 Revenue & EBITDA Revenue breakdown (FY09) Revenue breakdown (1H10) Other 19% Aviation 22% Others; 20% Duty-free; 31% F&B 6% F&B; 6% Duty Free 35% Ground Handling 19% Ground Handling; 19% Aviation; 25% EBITDA Breakdown (FY09) EBITDA Breakdown (1H10) Havas 14% TAV Istanbul 38% BTA ; 3% ATU ; 7% HAVAŞ ; 12% Other Airports 24% TAV Istanbul ; 53% BTA 4% ATU 8% Other Services 14% Other Airports; 24% 20

22 OPEX Breakdown Q 3Q 3Q FY08 FY09 1H09 1H10 FY09 1H10 D&A 7% catering 3% Other 14% Concession rent expenses 28% Other ; 17% Catering inventory sold; 3% Duty free inventory sold; 10% Services rendered; 6% services rendered 7% D&A; 9% duty free inventory sold 11% Personnel expense 30% Concession rent expenses; 21% Personnel expenses; 34% 21

23 OPEX Breakdown (Excluding concession rent and D&A expenses) Q 3Q FY08 FY09 1H09 1H10 FY09 1H10 Catering 4% Other 22% Personnel 47% Other 24% Duty Free 14% Catering 4% Services rendered; 9% Services rendered 10% Duty-free 17% Personnel expenses; 49% 22

24 1H10 Financial Summary Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir TAV Airports Consolidated 1H10 ( million) Revenues EBITDA (*) EBITDA (*) Margin Net Debt Airports % 805 Istanbul % 264 Ankara % 112 Izmir % 40 Tunisie % 341 Gazipasa 0 (1) nm 16 Tbilisi & Batumi % 30 Macedonia % 3 Services % 127 ATU (50%) % 22 BTA % (4) HAVAŞ % 70 Others 28 (4) nm 39 Total % 932 Eliminations (68) (0) Consolidated % 932 * EBITDAR for TAV Istanbul,TAV Tunisie and TAV Macedonia Note: Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir 23

25 Revenue by country (1H10) 3% 2% 90% 6% 24

26 CAPEX (million ) Enfidha Airport capex Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 intangible assets airport operation right property and equipment 25

27 Debt Structure NET DEBT ( million) 31 March December June 2010 Airports Istanbul Ankara Izmir Tunisia Gazipasa Tbilisi Batumi 0 0 (0) Macedonia Services ATU (50%) BTA 2 2 (4) Havas Others Total Deleveraging process initiated at the beginning of 2009 completed with 18% stake sale to PAIDF in June With the 40 million cash proceeds from TAV Tunisie sale, net debt at the holding company level decreased from 200 million at the end of 2008 to 44 million at the end of June

28 Debt Repayment Million, as of June 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 569 TAV Tunisie sale to PAIDF ( 39.7m, June 10) Debt on Holding Co. (as of June 30, 2010) ( million) year 2-year 3- year 4- year 5- year 5+ years 1- years 2-years 27

29 TAV Airports Overview 1 Page TAV Airports Financial Overview 19 TAV Airports Operations 29 Conclusion 50 28

30 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% 29

31 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 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, 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 HAVAS Only % 40,7 TGS 55% 63,2 HAVAS+ TGS 110,0 79,5 38% H09 1H10 1H09* 1H10 1H09 1H10 43

45 Havaş & TGS Operation Map İstanbul (AHL,ISG) Zonguldak Ankara 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 (97%), 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 50 47

49 Outlook Traffic & passenger growth THY joined Star Alliance in April 2008 (boosting transfer pax traffic) Started to collect 5 transfer fee as of Jan in Istanbul Ataturk Airport Ministry of Transportation of Turkey projects 350m. pax by 2023 (Implying %11 CAGR) TAV Airports target 100m. pax by 2020 %50 rights Issue in Feb 2009 ( 58m) Deleveraging Sale of TAV Tunisie stake to IFC ( 28m), PAIDF ( 40m) Havaş sale to HSBC and Is Girisim ( 102m) Antalya Gazipasa and Tunisia Enfidha Airports commenced their operations in July 09 and December 09, respectively New projects Macedonia started operations in March 2010 TGS: 50%-50% partnership between Havaş and Turkish Airlines, started operations in January 2010 Havas purchased 50% shares of North Hub Services Capex With Completion of Enfidha Airport Project minimal maintenance capex on existing concessions, as all terminals are brand new Dividends Dividends are expected to commence in 2 to 3 years Progressive policy with high payment of free cash flow 48

50 Appendix Macro Outlook Share Performance Revenue Sources Concession Overview Historic Overview Developements in 2009,2010 IFRIC 12 & Cash Flow Hedge Accounting Consolidated Financial Statements Corporate Governance Contact IR 49

51 Macro Outlook TURKEY CAGR GDP (US$, bn) % GDP per capita (US$, 000) 9,4 10,5 8, ,3 10,6 10, ,2 4% Population (mn) 68,9 69,7 70,5 71,4 72,3 73,2 74,2 75,1 76,1 1% GDP based on PPP per capita (in dollars) 12,9 13,1 12,5 13,1 13,5 14,1 14,7 15,4 16,1 4% GEORGIA GDP (US$, bn) % GDP per capita (US$, 000) 2,3 2,9 2,4 2,5 2,7 2,9 3,1 3,4 3,6 7% Population (mn) 4,4 4,4 4,4 4,4 4,4 4,4 4,4 4,4 4,4 0% GDP based on PPP per capita (in dollars) 4,7 4,9 4,8 4,9 5,1 5,5 5,9 6,3 6,7 6% MACEDONIA GDP (US$, bn) 7,9 9,6 9,2 9,4 9,9 10,6 11,3 12,1 13 6% GDP per capita (US$, 000) 3,9 4,7 4,5 4,6 4,8 5,1 5,4 5,8 6,1 5% Population (mn) 2 2,1 2,1 2,1 2,1 2,1 2,1 2,1 2,1 0% GDP based on PPP per capita (in dollars) 8,6 9,2 9,2 9,4 9,8 10, ,6 12,1 5% TUNISIA GDP (US$, bn) % GDP per capita (US$, 000) 3,5 4 3,9 4 4,1 4,3 4,5 4,8 5 4% Population (mn) 10,2 10,3 10,4 10,5 10,6 10,7 10, ,1 1% GDP based on PPP per capita (in dollars) 7,6 8 8,3 8,6 9 9,6 10,2 10,9 11,6 6% Source: IMF World Economic Outlook April

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 Share Performance (as of August 6, 2010) Closing Price Market Cap Avg. Daily Volume Free Float Foreign Ownership TL6,65 (US$4,44) US$ 1,613mn US$ 10m (last 3 months) 44% 79% 1,4 Relative Price ($) 8 1,3 1,2 1, ,0 0,9 0,8 0, ,6 0,5 0, ,3 0 TAVHL ($) Relative to ISE TAVHL Weekly 1M 3M Year to Date Since IPO TL %4 %14 %0 %40 -%21 USD %5 %18 %3 %40 -%27 Rel. to ISE-All %4 %8 -%6 %23 -%43 Notes: Share figures in this page was prepared as of August 06,

54 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

55 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 264m - 112m Izmir A.Menderes BOT (Jan. 2015) 100% Int'l 1, m Int l for %3 p.a. - 40m 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 - 30m Batumi BOT (Aug. 2027) 60% Int'l+Dom. 0,07 US$12 US$7 No - - Monastir&Enfidha BOT+Concession (May 2047) 67% Int'l+Dom. 3,8 9 9 No 11-26% of revenues from 2010 to m Skopje & Ohrid BOT+Concession (March 2030) 100% Int'l+Dom. 0, in Skopje, 16.2 in Ohrid - No 15% of the gross annual turnover ** 3m (*) As of 30 June 2010, ** The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers TAV Gazipaşa shall make a yearly rent payent of US$ 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. 54

56 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% 55

57 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. 56

58 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. 57

59 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. 58

60 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. 59

61 Developments in 2010 January March May July September November 2010 February April June August October December 1 April 2010 Our company has decided to cooperate with another pre-qualified candidate, Aeroports de Paris Management (ADPM), a subsidiary of Aeroports de Paris (ADP), in Male 13 International April 2010 Airport Havas project. purchased 50% shares of NHS for 3,250,000 in total. 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 60

62 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. 61

63 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 62

64 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 June 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 FY2009. 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 3.7 million on the Group s variable rate debt when ignoring effect of derivative financial instruments. EUR 1.9 million of the exposure is hedged through IRS contracts. Therefore, the net exposure on income statement would be EUR 1.8 million. A 50 basis points increase in Euribor or Libor would have resulted an increase in hedging reserve in equity approximately by EUR 28.4 million and a 50 basis points decrease in Euribor or Libor would have resulted an decrease in hedging reserve in equity approximately by EUR 29.7 million. Equity Profit or loss Strengthening Weakening Strengthening Weakening of EUR of EUR of EUR of EUR 30-Jun-10 USD (29.7) 36.3 (2.7) 2.7 TRL - - (6.0) 6.0 Other - - (0.4) 0.4 Total (29.7) 36.3 (9.1) 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)

65 Consolidated Income Statement (Audited) 1H10 (Audited) 1H09 Construction revenue Total operating income Sales of duty free goods Aviation income Ground handling income Commission from sales of duty free goods Catering services income Other operating income Construction expenditure (13.2) (188.3) Operating expenses (293.6) (242.0) Cost of catering inventory sold (8.0) (6.5) Cost of duty free inventory sold (29.6) (26.4) Cost of services rendered (18.0) (14.1) Personnel expenses (101.1) (72.9) Concession rent expenses (60.5) (70.1) Depreciation and amortization expense (27.7) (18.4) Other operating expenses (48.6) (33.6) Operating profit Finance income Finance expenses (44.0) (38.6) Profit before income tax Income tax expense (8.5) (8.7) Profit for the period from continuing operations 6.9 (2.5) Attributable to: Owners of the Company 8.5 (2.1) Non-controlling interest (1.6) (0.4) 6.9 (2.5) Other Financial Data: Adjusted EBITDA * Adjusted EBITDAR * Summary Cash Flow Data: Net cash provided by (used in): Operating activities Investing activities 86.6 (194.7) Financing activities (138.0) (184.0) Summary Balance Sheet Data: 30-June Dec-09 Cash and cash equivalents Restricted bank balances Total assets 2, ,923.1 Bank loans 1, ,288.7 Total liabilities 1, ,510.1 Total equity Net debt * Ignoring net effect of construction revenue and construction expenditure and including guaranteed passenger revenues from airports in Ankara and Izmir 64

66 Consolidated Balance Sheet ASSETS (eop, mn) (Audited) 1H10 (Audited) FY09 Property and equipment 147,6 117,5 Intangible assets 39,5 41,3 Airport operation rights 725,8 723,0 Other investments 0,0 0,0 Goodwill 154,6 151,4 Prepaid concession expenses 142,6 107,4 Trade receivables 124,1 134,5 Due from related parties 0,1 - Other non-current assets 3,2 8,9 Deferred tax assets 65,8 54,3 Total non-current assets 1.403, ,4 Inventories 13,0 11,4 Prepaid concession expenses 122,7 117,3 Trade receivables 80,5 62,0 Due from related parties 15,6 10,5 Derivative financial instruments 54,8 6,4 Other receivables and current assets 39,8 29,3 Cash and cash ehuivalents 47,0 34,0 Restricted bank balances 267,0 313,8 Total current assets 640,3 584,7 TOTAL ASSETS 2.043, ,1 65

67 Consolidated Balance Sheet EQUITY & LIABILITIES (eop, mn) EQUITY (Audited) 1H10 (Audited) FY09 Share capital 162,4 162,4 Share premium 220,3 220,3 Legal reserves 19,5 18,4 Other reserves 14,6 - Revaluation surplus 2,2 2,3 Purchase of shares of entities under common control 40,1 40,1 Cash flow hedge reserve -42,4-59,8 Translation reserves 4,0-2,1 Accumulated losses -2,1-9,2 Total equity attributable to equity holders of the Company 418,5 372,4 Non-controlling interest 97,7 40,6 Total Equity 516,2 413,0 0,0 66

68 Consolidated Balance Sheet LIABILITY ( Million) (Audited) 1H10 (Audited) FY09 LIABILITIES Loans and borrowings 1.100, ,5 Reserve for employee severance indemnity 6,6 4,6 Due to related parties 20,3 19,1 Deferred income 20,0 14,3 Deferred tax liabilities 6,1 7,3 Total non-current liabilities 1.153, ,9 Bank overdraft 3,4 2,4 Loans and borrowings 142,3 196,8 Trade payables 37,3 29,3 Due to related parties 7,6 12,3 Derivative financial instruments 126,0 85,4 Current tax liabilities 13,9 1,4 Other payables 35,6 39,3 Provisions 3,7 2,7 Deferred income 4,0 5,7 Total current liabilities 373,8 375,2 Total Liabilities 1.527, ,1 TOTAL EQUITY AND LIABILITIES 2.043, ,1 67

69 Consolidated Cash Flow Statement CASH FLOWS FROM OPERATING ACTIVITIES (Audited) 1H10 (Audited) 1H09 Profit / (Loss) for the period 6.9 (2.5) Adjustments for: Amortisation of airport operation right Depreciation of property and equipment Amortisation of intangible assets Amortisation of prepaid concession rent Provision for employment termination benefits Provision set for doubtful receivables Provision set for tax penalties Other provisions released (0.1) (0.0) Discount on receivables and payables, net Gain on sale of property and equipment (0.1) (0.1) Impairment of property and equipment Provision set for unused vacation Provision set / (released) for slow moving inventory 0.1 (0.0) Accrued insurance income (7.9) - Income accrual (4.5) - Interest income (5.6) (5.5) Interest expense on financial liabilities Income tax expense Discount income from concession receivable (4.0) (2.4) Unrealised foreign exchange differences on balance sheet items Cash flows from operating activities Change in trade receivables (18.8) (13.6) Change in non-current trade receivables Change in inventories (1.6) 0.2 Change in due from related parties (5.3) 1.3 Change in restricted bank balances Change in other receivables and current assets Change in trade payables 4.4 (0.4) Change in due to related parties (3.5) (41.5) Change in other payables and provisions 0.3 (2.6) Change in other long term assets Additions to prepaid concession expenses (97.5) (104.5) Cash provided from operations Income taxes paid (9.1) (1.2) Interest paid (37.7) (31.4) Retirement benefits paid (0.9) (0.7) Net cash provided from operating activities

70 Consolidated Cash Flow Statement CASH FLOWS FROM INVESTING ACTIVITIES 1H10 1H09 Interest received Proceeds from sales of non-controlling interest in subsidiaries Proceeds from sale of property and equipment and intangible assets Acquisition of property and equipment (45.4) (13.2) Additions to airport operation right (13.7) (186.4) Acquisition of joint venture net of cash acquired (3.2) - Acquisition of intangible assets (0.5) (0.5) Net cash provided from / (used in) investing activities 85.4 (194.7) CASH FLOWS FROM FINANCING ACTIVITIES 1H10 1H09 New borrowings raised Repayment of borrowings (174.8) (116.7) Change in restricted bank balances (24.7) 11.7 Non-controlling interest change (58.2) (0.1) Change in revaluation surplus and translation reserves Addition to / (repayment of) finance lease liabilities 0.5 (0.1) Increase in share premium Increase in share capital Net cash (used in) / provided from financing activities (138.0) NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 12.0 (4.1) CASH AND CASH EQUIVALENTS AT 1 JANUARY CASH AND CASH EQUIVALENTS AT 30 JUNE

71 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. 70

72 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 83.3 (8.5) 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 Public Disclosure and Transparency Stakeholders Board of Directors Total

73 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 72

74 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 73

75 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 : / 2123 Fax : Besim MERİÇ Investor Relations Associate besim.meric@tav.aero Tel : / 2124 Fax :