TAV AIRPORTS HOLDING January 2011

Transcription

1 TAV AIRPORTS HOLDING January 2011

2 2 Page Overview 1 Financial Overview 23 Operations 33 Conclusion 54

3 3 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%) Skopje & Ohrid (100%) BTA (67%) HAVAŞ (65%) TAV O&M (100%) TAV IT (99%) TAV Security (67%) TGS (%50) North Hub Services (%50)

4 Revenues TAV Airports Overview 4 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%) 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 BTA (67%) Operating in Turkey, Georgia, Macedonia and Tunisia Operates Istanbul Airport Hotel (131 rooms) Total seating capacity of at144 points Bakery & pastry factory serving in Turkey Havaş (65%) Major groundhandler in Turkey with a c.65% (4) share Operates in 22 airports in Turkey including Istanbul (AHL&SGA), 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 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 2010 (5) Revenues represent the proportional interest of these companies in TAV Airports (50% of ATÜ revenues) (before eliminations) O&M, IT and Security TAV O&M (100%): TAV IT (99%): Commercial area allocations & CIP/VIP,travel agency services Airport IT services (FIDS,FMS,etc) TAV Security (67%): Security service provider in Istanbul, Ankara, Izmir and Gazipasa 355m/377m 123m/145m 55m/59m 130m/126m 43m/66m *TGS started operations as of 1 January 2010

5 Ownership Structure (as of 31 December, 2010) 5 Shareholder Structure Founding Shareholders (5) 40,1% (1) 26,1% 1. Tepe Insaat Sanayi A.Ş. Turkish integrated conglomerate focused on infrastructure and construction 2. Akfen Holding A.Ş. Holding company operating in the construction, tourism, insurance and energy sector 3. Sera Yapi Endustrisi A.Ş. (4) 3,5% (3) 4,2% (2) 26,1% 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 (5.07%) shares in the free float as of July Schreders has (5.02%) shares in the free float as of January TAVHL effective free float is 40% Family of Dr. Sani Sener, CEO of TAV Airports 4. Other Non-floating 5. Other Free Float Other shareholders

6 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)

7 Diversification into high growth markets 7 Large catchment areas in operation Operating 3 of the 4 largest airports in Turkey Macedonia Georgia 32,1 (Passenger number, million) Turkey 22,0 Tunisia 7,5 7,8 İstanbul Antalya İzmir** Ankara Turkey TAV is the leading airport operator in Turkey The airport terminals which we operate in Turkey handled 42 million passengers in 2010 Istanbul is the largest business center in the region Tunisia The operation started as of January 1, 2008 in Tunisia Monastir Airport, which handled 3.9 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 2010 **TAV only operates the International Terminal, which had 2,1m passengers in 2010 (Passenger number, million) 3,92 0,91 0,73 Tunisia Georgia Macedonia Source: TAV Tunisie, Georgian Authority, Macedonia Aviation Authority, Passenger figures for 2010

8 Favourable Economic and Demographic Backdrop 8 Average Projected Real GDP Growth during Substantial market size 6th largest economy in Europe 16th largest economy in the world Expected to beat the market 7,8 3, ,7 3,1 GDP Growth Rate 1,7 1,5 Turkey Emerging Europe EURO Area Sizable population with favourable demographics 2 nd largest population in Europe 8% 15% 64% 50% 28% 35% Turkey EU Source: IMF

9 Prime Location 9 Transportation junction between Europe, North Africa and Asia Investment backyard with a GDP of $35 trillion and a population of 1.4 bn Turkey has the 8th largest network across the world with 130 international and 46 domestic routes. EUROPE GDP: $18.0 trillion Population: 588 mn NORTH AFRICA & MIDDLE EAST GDP: $3.5 trillion Population: 586 mn RUSSIA & CIS GDP: $1.3 trillion Population: 142 mn CAUCASIAN GDP: $0.2 trillion Population: 105 mn

10 Turkish Aviation Market Domestic Intl'l total Tourist Arrivals Deregulation of the domestic market in nd largest country in Europe in terms of population: 72.5m** Source: DHMI, **Turkstat, ***Ministry Culture and Tourism Limited alternative transport infrastructure In 2010, foreign visitors reached 29m***

11 Aircraft Growth in Turkey 11 Turkey CAGR : 15% Aircraft number in Turkey will reach 750 in 2023

12 12 Turkish Aviation Market and TAV Airports Total Passenger Traffic of Turkish Aviation Market by year (mn) CAGR 15% Total Passenger Traffic of TAV Airports by year (mn) CAGR 23%

13 TAV Traffic Performance 13 In 2010 (January December Period) TAV Total Passenger Istanbul Ataturk Airport Int l Passenger 47,6m 20,3m 13% 11% TAV Passenger Figures (million) TAV Air Traffic Movements ( 000) Airports 2008* 2009* 08/09 (%) % Istanbul Ataturk ,8 4% 29,8 32,1 8% Int l ,4 8% 18,4 20,3 11% Dom ,4-1% 11,4 11,8 3% Ankara Esenboga 5.7 6,1 7% 6,1 7,8 28% Int l 1.2 1,1-12% 1,1 1,3 21% Dom ,0 12% 5,0 6,4 29% Izmir A.Mend. (int l) 1.7 1,7-2% 1,7 2,1 28% Monastir Airport(ınc. Enfidha) 4.2 3,8-10% 3,8 3,92 4% Georgia (inc. Batumi) 0.8 0,77-3% 0,77 0,91 18% Macedonia(Skopje&Ohrid)** 0,70 0,64-9% 0,64 0,73 14% TAV Total *** ,1 3% 42,1 47,6 13% Int l ,7 3% 25,7 29,3 14% Dom ,4 3% 16,4 18,3 11% Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie,TAV Macedonia Airports 2008* 2009* 08/09 (%) % Istanbul Ataturk ,8 4% 265,8 273,7 3% Int l ,9 9% 169,9 178,8 5% Dom ,8-4% 95,8 94,9-1% Ankara Esenboga ,3 0% 51,3 63,4 24% Int l ,1-17% 10,1 11,7 16% Dom ,2 6% 41,2 51,6 25% Izmir A.Mend. (int l) ,1 0% 13,1 16,1 23% Monastir Airport(Inc. Enfidha) ,4-9% 30,4 31,8 5% Georgia (inc. Batumi) ,6-5% 15,6 18,7 20% Macedonia(Skopje&Ohrid)** 14,3 12,8-10% 12,8 12,8 0% TAV Total *** ,2 2% 376,2 416,6 11% Int l ,4 3% 237,4 267,9 13% Dom ,8-1% 138,8 148,7 7% ** Operation commencement date: March 01, 2010 *** TAV 2009 traffic figures do not include Macedonia

14 Duty Free Performance 14 Revenue m % % Sales of duty free goods increased by 13% from 106 million in 9M09 to 120 million in 9M10 on the back of the strong passenger growth. Despite the limitations on duty free purchases set by the Undersecretariat of Customs, effective from October 2009, duty free sales grew in-line with the passenger growth of 13%. Note that the Customs Undersecretariat alleviated the limits as of September 6 th, impact of which has been seen only one month during September Q 2Q 3Q 4Q Duty Free Spend Per Pax ( ) % 9M09 9M10 % ATU Average 15,8 14,7-7% 14,7 13,9-5% Average per passenger spending decreased by 5% YoY from 14.7 in 9M09 to 13.9 in 9M10, mainly due to dilutive impact of commencement of Macedonia and Tunisia operations and also increase in transit / transfer traffic. dilutive impact

15 Customs Law 15 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 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 Parfume, lotion, essence, cologne, lavender water 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 15

16 TAV vs Other Airport Operators 16 TAV Airports Counterparts SHAREHOLDER STRUCTURE - No state stake - No foreign ownership limit - Active state participation - Foreign ownership limits BUSINESS MODEL -Integrated business model with service companies active in every step of the value chain - Active mainly in airport/terminal management with some participation in airport services PORTFOLIO OWNERSHIP - Ownership of the operational rights of the airport portfolio over a predetermined period through BOTs and concessions - Mostly own the airport portfolio CAPITAL EXPENDITURE If BOT, high upfront capex with minimal or no mandatory capex throughout the operation period -If concession, annual concession payment - Regular capital expenditure with bulk investments time-totime

17 Earnings Visibility 17 AVIATON NON-AVIATON 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 main driver Ground Handling Ramp, passenger services and traffic ATM growth and aircraft type are the main drivers Other Catering, car park, advertising, area allocation, lounge services Notes: Passenger service charges apply to departing passengers only

18 Concession Overview 18 Airport Type/Expire TAV Stake Scope 2009 Pax(mppa) fee/pax Int'l fee/pax dom. Volume Guarantee Concession Fee Net Debt* Istanbul Ataturk Concession (Jan. 2021) 100% Int'l+Dom. 29,8 US$15, 5 (Transfer) 3 No $140m/yr + VAT 237m Ankara Esenboga BOT (May 2023) 100% Int'l+Dom. 6, ,6 M. Dom., 0,75 Int'l for 2007+%5 p.a - 108m Izmir A.Menderes BOT (Jan. 2015) 100% Int'l 1, m Int l for %3 p.a. - 31m Gazipasa Tbilisi Batumi Concession (July 2034) BOT (Feb. 2027) BOT (Aug. 2027) 100% Int'l+Dom. - 5 TL4 No $ VAT 16m 66% Int'l+Dom. 0,7 US$22 US$6 No - 24m 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.

19 19 Operations Map & Potential Projects Riga Int l Airport (with Air Baltic) Saudi Airport (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

20 Operational Highlights 20 Antalya Gazipasa and Tunisia Enfidha Airports commenced operations Traffic Growth TAV started to collect 5 transfer fee as of Jan in Istanbul Ataturk Airport 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 BTA took over operation of F&B service points at Istanbul Airport Domestic Terminal. 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 2010 on top of 3% growth attained in FY09 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

21 Financial Highlights 21 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

22 22 TAV Airports Overview 1 Page TAV Airports Financial Overview 23 TAV Airports Operations 33 Conclusion 54

23 Financial Overview 23 (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

24 24 Revenue & EBITDA Revenue breakdown (9M09) Revenue breakdown (9M10) Other 18% F&B 6% Duty-free 33% Other 18% F&B 6% 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% HAVAŞ 16% ATU 5% Other Services 0% Istanbul 46% BTA 4% ATU 9% Other Airports 10% Other Airports 29%

25 25 OPEX Breakdown FY08 FY09 9M09 9M10 9M09 9M10 D&A 7% Other 14% catering 3% duty-free 11% services rendered 7% D&A 9% Other 16% catering 3% duty-free 10% services rendered 7% Concession 29% Personnel 29% Concession 21% Personnel 34%

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

27 9M10 Financial Summary 27 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 below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir ** TAV Istanbul EBITDAR: 170m

28 Revenue by country (9M10) 28 3% 2% 89% 6%

29 29 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

30 Debt Structure 30 NET DEBT ( million) 31 December December June September 2010 Airports Istanbul Ankara Izmir Tunisia Gazipasa Tbilisi Batumi 0 0 (0) (0) Macedonia Services ATU (50%) BTA 1 2 (4) (4) Havas (4) Others* Total * Including Holding Co.

31 Debt Repayment 31 Million, as of September 30, 2010 Havaş Holding ATU TAV Tbilisi TAV Izmir TAV Esenboğa TAV Tunisie TAV Istanbul 551 De-leveraging Process Rights Issue ( 57m, January 09) TAV Tunisie Sale to IFC ( 28m, August 09) 1- years 2-years 3- years 4- years 5- years 5+ years Havaş sale to HSBC - Is Girisim ( 102m, March 10) Debt on Holding Co. (as of September 30, 2010) TAV Tunisie sale to PAIDF ( 39.7m, June 10) ( million) 1- years 2-years

32 32 TAV Airports Overview 1 Page TAV Airports Financial Overview 23 TAV Airports Operations 33 Conclusion 54

33 33 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%

34 34 Istanbul Atatürk Airport (100% owned) Largest in the region Passenger traffic (m) Main hub and home base for Turkish Airlines One of the fastest growing airports in Europe & 39th busiest airport in the world Revenue of 260 million in ,4 12,1 15,6 Int'l Domestic 28,6 23,2 21,3 19,3 29,8 32,1 193 million EBITDAR in 2009, implies 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: 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

35 35 Ankara Esenboga Airport (100% owned) Passenger traffic (m) 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 ,8 2,8 3,3 Int'l Domestic 5,0 4,5 3,8 5,7 6,1 7,8 In 2009, received Best Airport Award by ACI, in 5-10 million category 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 35

36 Izmir Adnan Menderes Airport (100% owned) 36 Passenger traffic (m) Third largest city with the second biggest port in Turkey Int'l Major tourist destination Operations commenced in September 13, ,5 1,4 1,5 1,7 1,5 1,6 1,7 1,7 2,1 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

37 Georgia 37 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.

38 Tbilisi International Airport (66% owned) 38 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 Passenger traffic ( 000) 0,82 0,71 0,70 0,62 0,55 0,57 0,40 0,27 0,32 Selected as the Best Emerging Airport Russia, CIS and Baltic States 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

39 39 Batumi International Airport (60% owned) Passenger traffic ( 000) Operations in the terminal commenced in May 26, Second biggest city of Georgia with strategic importance 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

40 Tunisia 40 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

41 Monastir International Airport (67% owned)(*) 41 TAV started to operate in January 1, 2008 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 2010 Source: TAV Tunisie Passenger traffic (m) 4,1 4,2 4,2 4,2 3,7 3,8 3,9 2,9 2, Air Traffic Movement per airline (2009) TUNIS AIR (%30) NOUVELAIR TUNISIA(%20) KARTHAGO AIRLINES(%6) OTHER (%43) Source: TAV Tunisie 41

42 42 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. 42

43 43 Skopje and Ohrid International Airports (100% owned) We are awarded the tender on September 2, 2008 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. 575 Passenger traffic ( 000) 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)

44 ATU Duty Free 44 ATU is Turkey s leading duty free operator chain, established in 2000 as a joint venture between TAV Airports Holding and Unifree Duty Free A.S. It is the sole duty free operator of the Istanbul, Izmir, Ankara in Turkey, Tbilisi and Batumi airports in Georgia, Enfidha airport in Tunisia, Skopje and Ohrid airports in Macedonia and Riga International Airport in Latvia as of January 2011 ATU which is an enterprise constituting a perfect partnership collaboration model between TAV and Unifree creates a considerable operation, purchasing capacity and an effective logistics network.

45 45 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

46 BTA Catering Services 46 BTA Catering was founded in 1999 under the partnership of Bilintur, Tepe and Akfen in order to handle the food & beverage operation of the Istanbul Atatürk Airport's International Terminal. Following the opening of the new International Terminal of Istanbul Atatürk Airport on the 10 th of January 2000, all food & beverage operations of the terminal, both for the passengers and the terminal personnel, are managed by BTA Catering.

47 BTA Catering Services (67% owned) 47 Financial Data BTA is the food and beverage operator at Istanbul Ataturk(Int l and domestic terminal), Ankara, Izmir,Tbilisiand Batumi,Monastir,Enfidha,Skopje and Ohrid Total revenue increased by 2% in 2009 Concession fees: BTA pays c40% of its revenues to TAV ( 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 ( )* 29, ,3 58,1 59,1 1,3 1,5 1,9 2,4 1,8 2,1 2 14,9 21, * 2007,2008 and 2009 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only

48 Havaş Ground Handling 48 Havaalanları Yer Hizmetleri A.Ş. (Havaş), the first Ground Handling Services Company in Turkey, was founded by the state in 1933 to provide ground handling and catering services for airlines. Whereas catering services of the company were privatized under the name USAŞ in 1987, ground handling services unit continued to render services under the name Havaalanları Yer Hizmetleri A.Ş.

49 Havaş Ground Handling (65% owned) 49 Total revenue of Havas increased by 4% in 2009 Operating at 22 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) % Figures imply 100% of Havas Revenue ( m) Aircrafts Handled* ( 000) 84,1 99,5 108,1 120,6 125,9 109 Havas Only % %13 TGS Only* %33 Havas+TGS * THY flights served by Havas at Istanbul Ataturk Airport in 2010

50 Havaş & TGS Operation Map 50 İstanbul (AHL,ISG) Zonguldak Sinop Ankara Merzifon/ Amasya Trabzon Sivas İzmir Nevşehir Kayseri Elazığ Muş Bodrum Antalya Konya Adıyaman Urfa Batman Adana Gaziantep Dalaman

51 North Hub Services 51 Riga 1 Jan 2010 Helsinki 1 July 2010 Stockholm April 2011 Gothenburg June 2011

52 Other Services 52 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 TAV O&M Holding 39% 39% Stemming from one off gain from sale of TAV Tunisia to IFC TAV Security 11% TAV IT 11%

53 53 TAV Airports Overview 1 Page TAV Airports Financial Overview 23 TAV Airports Operations 33 Conclusion 54

54 Share Performance (as of January 13, 2011) Closing Price 7,68 Avg. DailyVol. (USD) 13 mn 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 ($) Market Cap (USD) 1,8bn Free Float 44% Foreign Ownership 82% TAVHL ($) Relative to ISE-100 Effective Free Float 40% Share Price Performance Weekly 1M 3M 2009 to date Since IPO TL -1% 3% -2% 62% -8% USD 0% -1% -11% 55% -19% Relative to ISE % -1% 0% 25% -42% Notes: Share figures in this page was prepared as of January 13, 2011.

55 55 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 2010

56 Traffic Outlook World 5.3% CAGR in RPK World 4.2 pax - 5.3% CAGR in RPK World % RPK World 4.7% CAGR in RPK Turkey 11% CAGR in Passengers 56

57 Tourism 57 Tourist Arrivals increased by 6% in 2010 International Tourist Arrivals by Country 6% Turkey # /07 09/08 Countries Change Germany 4,4 4,5-2% Russia 3,1 2,7 15% UK 2,7 2,4 10% Iran 1,9 1,4 36% Bulgaria 1,4 1,4 2% Georgia 1,1 1,0 12% Netherlands 1,1 1,1-5% France 0,9 0,9 0% Syria 0,9 0,5 76% Italy 0,7 0,6 6% Other 10,5 10,5 0% TOTAL 28,6 27,1 6% Source : Ministry of Culture and Tourism 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 :UNWTO

58 58 Revenue sources Aeronautical Charges Non-aeronautical Charges Passenger Fee Ground Handling Landing Parking Fuel Duty Free F&B Car Park Istanbul Turkey Esenboga Izmir Gazipasa Tunisia Enfidha Monastir Georgia Tbilisi Batumi Macedonia Latvia Skopje Ohrid Riga 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 2018

59 Istanbul as a Transit Hub 59 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

60 Growth Rates of Pax Number in Selected Airports TAV Airports Fraport World 3 Aeroports de Paris BAA Europe AENA Schiphol % TAV 3% TAV Airports Fraport World* AENA Europe* Schiphol* 13 Aeroports de Paris BAA 9 TAV 13% % Source: ACI * As of 11M

61 Historic Overview 61 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 redevelopment 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%

62 Developments in TAV Tunisia minority share sale aggreement Change in costoms law Havas stake sale announcement 4 3 %50 Rights Issue TAV Tunise stake sale to IFC TAV Tunusie started to provide services for Enfidha Airport 2 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09

63 Developments in Takeover of operations of Skopje and Ohrid Airport NHS share Purchase Agreement AKFEN IPO MoU with AirBaltic MoU with Indonesia Removed from the MSCI Small Cap Index Corporate Governance Report Update Riga Commercial Areas Change in Duty Free Limits AKFEN SPO 5 TAV Tunisie minority share sale agreement Medina Airport Tender 4 3 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10

64 Corporate Governance Rating 64 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 (9,03) 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. Highest corporate governance rating in Turkey 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 Dividend Policy 65 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 Management Team 66 Positions within TAV Airports Dr. Sani Şener Senior Management Murat Ulug Serkan Kaptan Altug 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 Zoran Krstevski Service Companies GMs Ersan Arcan Sadettin Cesur Müjdat Yücel Levent Güler Binnur Onaran Eda Bildiricioğlu Chief Executive Officer (CEO) Chief Financial Officer (CFO) Business Development 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, TAV Macedonia GM, ATU GM, BTA GM, HAVAS GM Deputy, TAV Security GM, TAV IT GM, TAV O&M

67 67 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 IFRIC 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 IFRIC 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 69

70 70 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) 6.5

71 71 Consolidated Income Statement 9M10 9M09 FY09 Construction revenue 14,9 248,8 284 Total operating income 568,5 463,5 609 Sales of duty free goods 120,0 106,3 142 Aviation income 129,9 101,2 131 Ground handling income 121,4 89,8 113 Commission from sales of duty free goods 56,9 51,7 68 Catering services income 34,5 27,7 38 Other operating income 105,8 86,8 116 Construction expenditure (14,7) (237,2) (271) Operating expenses 0,0 0,0 (509) Cost of catering inventory sold (12,9) (10,2) (14) Cost of duty free inventory sold (48,2) (42,5) (55) Cost of services rendered (30,7) (25,0) (34) Personnel expenses (158,9) (110,9) (153) Concession rent expenses (95,3) (109,0) (144) Depreciation and amortization expense (43,5) (27,5) (37) Other operating expenses (75,3) (51,0) (72) Operating profit 104,0 99,0 113 Finance income 16,7 13,0 25 Finance expenses (67,0) (60,0) (85) Profit before income tax 53,7 52,0 53 Income tax expense (14,3) (16,7) (2) Profit for the period from continuing operations Attributable to: Owners of the Company 33,5 33,8 51 Non-controlling interest 5,9 1,5 1 39,4 35,3 51 Other Financial Data: Adjusted EBITDA * 172,5 135,1 167 Adjusted EBITDAR * 267,8 244,1 311 Summary Cash Flow Data: Net cash provided by (used in): Operating activities 151,4 111,9 210 Investing activities 68,5 (233,6) (285) Financing activities (225,0) 144,8 86 Summary Balance Sheet Data: Cash and cash equivalents 30,1 34,0 34 Restricted bank balances 317,1 313,8 314 Total assets 2,037,4 1,923,1 1,923 Bank loans 1,237,7 1,288, Total liabilities 1,526,3 1,510, Total equity 511,1 413,0 413 Net debt 890,5 940,8 941

72 Consolidated Balance Sheet 72 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 Consolidated Balance Sheet 73 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 Consolidated Balance Sheet 74 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 Consolidated Cash Flow Statement 75 9M10 9M09 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 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 Consolidated Cash Flow Statement 76 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 TAV Investor Relations 77 For further information, please visit or call (x2120, 2122, 2123, 2124) 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 :