TAV AIRPORTS HOLDING. November 2011

Transcription

1 TAV AIRPORTS HOLDING November 2011 September 2011

2 2 Contents Page Operational and Financial Highlights 1 Appendix 20

3 TAV Airports Holding Co. 3 Airport Companies Atatürk Airport (100%) Esenboga Airport (100%) Adnan Menderes Airport (100%) Services Companies ATÜ (50%) BTA (67%) HAVAŞ (65%) Heinemann Bilintur HSBC (28.3%) İş Girişim (6.7%) Gazipaşa Airport (100%) Tbilisi & Batumi (76%) TGS (50%) North Hub Services (50%) Monastir & Enfidha (67%) Skopje & Ohrid (100%) TAV Latvia (100%) TAV O&M (100%) TAV IT (99%) TAV Security (100%)

4 Revenues TAV Airports Overview 4 Airports Duty Free Food and Beverage Ground Handling Others 9M11 (4) Turkey Istanbul Ataturk Airport (100%), Ankara Esenboğa Airport (100%), Izmir Adnan Menderes Airport (Intl. Terminal) (100%), Gazipasa Airport (100%) Georgia Tbilisi and Batumi Airports (76%) Tunisia Monastir and Enfidha Airports (67%) Macedonia Skopje and Ohrid Airports (100%) Saudi Arabia Medinah Airport (33%) 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, Macedonia and Latvia BTA (67%) Operating in Turkey, Georgia, Macedonia, andtunisia Operates Istanbul Airport Hotel (131 rooms) Total seating capacity of at 146 points Bakery & pastry factory serving in Turkey BTA Denizyollari (50%) (3) is the F&B operator of Istanbul Deniz Otobusleri (IDO) HAVAŞ (65%) Major ground handler in Turkey with a c.65% (1) share Operates in 22 airports in Turkey including Istanbul, Ankara, Izmir and Antalya TGS (%50) (2) operates in Istanbul (AHL&SGA), Ankara, Izmir, Antalya and Adana %50 partner of North Hub Services, operating in Riga, Helsinki and Stockholm O&M, IT and Security TAV O&M (100%): Commercial area allocations & lounges, travel agency services TAV IT (99%): Airport IT services TAV Security (100%): Security service provider in Istanbul, Ankara, Izmir and Gazipasa TAV Latvia (100%): Commercial area management in Riga Airport 381m 152m 60m 151m 45m Notes: (1) Based on number of flights for 2010 (2) TGS started operations as of 1 January, 2010 (3) BTA Denizyollari will gradually took over the F&B operations (4) Revenues represent the proportional interest of these companies in TAV Airports (50% of ATÜ revenues) (before eliminations)

5 5 Investment Highlights Attractive market with strong growth prospects Turkey is the fastest growing aviation market in Europe Passenger growth of 15% p.a. during Projected passenger growth of 11% p.a. during (1) Access to fast growing MENA region Istanbul is the most efficient hub for Europe, MENA Region (2) Leading airport operator with diversified portfolio Diversified, balanced portfolio with leading market positions #1 airport terminal operator in Turkey 10 airports operating in Turkey, Georgia, Tunisia and Macedonia (large catchment areas) Awarded Medinah Airport in Saudi Arabia Strong financial performance and cash flow generation Strong momentum with EBITDA posting 64% CAGR between 2006 and 2010 High earnings visibility given clear / agreed regulatory framework Proven track record of growth and profitability with attractive organic growth prospects High financial returns and cash flow generation given fixed cost base (operational leverage) and minimal ongoing capex Platform play with significant untapped cross-fertilization potential Well-positioned to win international concessions and benefit from further organic and inorganic growth (1) Source: Turkey s Ministry of Transport (2) Determining Hub Efficiency in Europe, MIiddle East and North Afirca a comparative study, E. Nur Günay, Şükrü Nenem

6 Turkey Malaysia China Germany UK Spain USA Italy Mexico France World 6 Turkey Fastest Growing Aviation Market in Europe Comments The Turkish aviation market has historically showed strong growth and resilience Penetration is still low vs. Western European countries (passenger km / capita: Turkey 0.5, Italy 0.8, Spain 1.6, Germany 2.1) (1) Limited alternative transport infrastructure in a very large country Transportation junction between Europe, North Africa and Asia Young population, average age is 31 years (versus Spain 41 years, and UK 39 years) and 50% of its population is currently younger than 29 years Visa policies are currently changing with more countries having eliminated or simplified the visa process with Turkey From 2000 to 2009, Turkey was the fastest growing tourist country in the world. As a result, Turkey is now the 7th largest tourist destination in the world Turkey has a number of attractive tourist destinations, e.g. Antalya, Istanbul (largest business centre in the region), Mugla (Bodrum and Dalaman) and Izmir Source: Euromonitor, IATA. (1) Based on thousands km per capita. Traffic outlook Turkey one of the fastest growing airline markets International Domestic Rank Country CAGR (%) Country CAGR (%) 1 Algeria 7.8 China Kazakhstan 7.6 Turkey Romania 7.3 Philippines Egypt 6.9 Brazil Lebanon 6.8 Iran Latvia 6.7 Greece Turkey 6.3 Argentina Ukraine 6.1 Vietnam Indonesia 6.0 Italy Russian Federation 6.0 India 4.3 World total 3.2 World total 3.5 Source: IATA. Note: Only those countries with traffic in excess of 2 million passengers per annum have been included. Intl. tourist arrivals 10 largest countries ranked by growth World 4.2% pax 5.1% CAGR in RPK 11.5% 9.8% World 4.8% RPK 5.6% 2.7% 2.1% 1.3% 0.8% 0.5% 0.5% 2.9% World 4.7% CAGR in RPK (0.4%) Turkey 11% CAGR in Passengers Source: UNWTO. The resilient Turkish aviation market is set to continue to grow rapidly in the next few years

7 7 Growth of the Turkish Aviation Market Pax, Mn Domestic Intl'l total Tourist Arrivals Number of Aircrafts in Turkey Deregulation of the domestic market in nd largest country in Europe in terms of population: 72.5m(1) Limited alternative transport infrastructure In 2010, foreign visitors reached 29m(2) Aircraft number in Turkey expected to reach 750 in 2023(3) Source: DHMI, (1)Turkstat, (2)Ministry Culture and Tourism, (3)Ministry of Transport

8 TAV Traffic Performance 8 January October Period Number of Passengers Growth TAV Total Passenger Ataturk Airport Total Pasenger 44.6 m 31.4 m TAV Passenger Figures (million) TAV Air Traffic Movements ( 000) Airports % 10M10 10M11 % Istanbul Ataturk 29,8 32,1 8% 27,1 31,4 16% Int l 18,4 20,3 11% 17,1 19,9 17% Dom. 11,4 11,8 3% 10,0 11,4 14% Ankara Esenboga 6,1 7,8 28% 6,4 7,1 10% Int l 1,1 1,3 21% 1,1 1,2 6% Dom. 5 6,4 29% 5,3 5,9 11% Izmir A.Mend. (int l) 1,7 2,1 28% 1,9 2,3 17% Tunisia (Monastir & Enfidha) 3,8 3,92 4% 3,7 2,1-42% Georgia (inc. Batumi) 0,77 0,91 18% 0,77 1,02 32% Macedonia(Skopje&Ohrid)** 0,64 0,73 14% 0,62 0,72 15% TAV Total *** 42,1 47,6 13% 40,5 44,6 10% Int l 25,7 29,3 14% 25,1 27,2 8% Dom. 16,4 18,3 11% 15,4 17,4 13% Airports % 10M10 10M11 % Istanbul Ataturk 265,8 273,7 3% 228,3 254,4 11% Int l 169,9 178,8 5% 148,4 165,6 12% Dom. 95,8 94,9-1% 79,9 88,8 11% Ankara Esenboga 51,3 63,4 24% 52,2 59,8 15% Int l 10,1 11,7 16% 9,9 10,2 3% Dom. 41,2 51,6 25% 42,3 49,7 17% Izmir A.Mend. (int l) 13,1 16,1 23% 14,5 15,7 8% Tunisia (Monastir & Enfidha) 30,4 31,8 5% 29,2 18,6-36% Georgia (inc. Batumi) 15,6 18,7 20% 15,3 19,4 27% Macedonia(Skopje&Ohrid)** 12,8 12,8 0% 9,9 10,1 2% TAV Total *** 376,2 416,6 11% 349,5 378,1 8% Int l 237,4 267,9 13% 349,5 378,1 5% Dom. 138,8 148,7 7% 225,6 236,5 14% Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie,TAV Macedonia ** Operation commencement date: March 01, 2010 *** TAV 2009 traffic figures do not include Macedonia

9 Growth Rates of TAV Airports in 5 years 9 Passengers (m) CAGR ( ) 20% Number Of Employees CAGR ( ) 21% Revenue (m ) CAGR ( ) 18% EBITDA (m ) CAGR ( ) 64%

10 10 Financial Overview (in mn )* 9M11 9M10 y-o-y y-o-y Revenues % % EBITDA % % EBITDA margin 30.8% 29.0% 1.7ppt 27.0% 26.2% 0.9 ppt Net Income (Loss) % % Cash flow from operations % % Capex (92) (72) 28% (119) (312) -62% Free Cash Flow % 217 (102) nm Shareholders Equity % % Net Debt % % Average number of employees 19,847 17,090 16% 17,535 12,194 44% Number of passengers (mn) % % - International % % - Domestic % % * 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) % 19% 5% M11 9M10 9M11 9M10 9M11 9M10

11 11 Revenue & EBITDA Revenue breakdown (9M11) Revenue breakdown (9M10) 6% 15% 32% Duty-free Aviation Ground-handling 6% 18% 30% Duty-free Aviation Ground-handling 22% 25% F&B Other 20% 26% F&B Other EBITDA Breakdown (9M11) EBITDA Breakdown (9M10) 0% 7% 3% 15% 26% 50% Istanbul Other Airports HAVAŞ ATU BTA Other Services 3% 5% 16% 29% 0% 46% Istanbul Other Airports HAVAŞ ATU BTA Other Services

12 12 OPEX Breakdown 9M11 9M10 35% 3% 8% 10% 11% 14% 20% Catering Services rendered D&A Duty free Other Concession rent Personnel 34% 21% 3% 7% 9% 16% 10% Catering Services rendered D&A Duty free Other Concession rent Personnel Excluding concession rent and D&A expenses 49% 4% 11% 20% 16% Catering Services rendered Duty free Other Personnel 49% 4% 9% 23% 15% Catering Services rendered Duty free Other Personnel

13 13 CAPEX Enfidha Airport capex ( m) Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 property and equipment airport operation right intangible assets

14 Maturity Profile of Debt Others TAV Holding - solo Havaş TGS TAV Gazipaşa TAV Macedonia ATU TAV Tbilisi TAV Izmir TAV Esenboğa TAV Tunisie TAV Istanbul 1- years 2-years 3- years 4- years 5- years 5+ years

15 Debt Structure 15 NET DEBT (million) 30 September June March December 2010 Airports Istanbul Ankara Izmir Tunisia Gazipasa Tbilisi Batumi Macedonia Services ATU (50%) BTA -5 (2) (5) (3) Havas Others* Total * Including Holding Co.

16 Revenue by country (9M11) 16 Latvia 1% 5% 2% 91% 2%

17 9M11 Comparative Financials 17 TAV Airports Consolidated 9M11 REVENUES ( million) 9M11 9M10 Change Airports % Istanbul % Others % Services % ATU (50%) % BTA % HAVAŞ % Others % Total % Eliminations (122) (112) 9% Consolidated % EBITDA ( million) 9M11 9M10 Change Airports % Istanbul % Others % Services % ATU (50%) % BTA 6 6-4% HAVAŞ % Others (1) (8) n.m Total % Eliminations (1) (1) -30% Consolidated % Note: Figures above are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir ** Regarding BTA, there is a one-off expense of 618K in the second quarter of 2011, related with the tax court case.

18 2010 Financial Summary 18 TAV Airports Consolidated 2010 ( million) Revenues EBITDA (*) EBITDA (*) Margin Net Debt Airports 471,0 170,2 36% 697 Istanbul** 318,6 110,7 35% 160 Ankara 37,9 15,3 40% 110 Izmir 32,7 19,4 59% 26 Tunisie 45,7 12,2 27% 343 Gazipasa 0,0 (1,2) nm 16 Tbilisi & Batumi 22,0 11,3 51% 23 Macedonia 14,1 2,5 18% 18 Services ,5 9% 125 ATU (50%) ,4 9% 21 BTA 75,0 7,2 10% (3) Havaş 163,5 25,5 16% 76 Others 60,7 (4,6) nm 32 Total ,7 23% 822 Eliminations (155) (1,5) - Consolidated ,2 27% 822 Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir ** TAV Istanbul EBITDAR: 228m (margin: 72%)

19 19 Appendix Page Overview 21 Operations 40 References 63

20 Historic Overview 20 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 was 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 July 2, 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 Jan 2, 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 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 re-development of the Batumi Airport February 2007 IPO: TAV Havalimanlari Holding floated million shares 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 was awarded the tender of Antalya-Gazipasa Airport November 2007 TAV increased its stake in Havaş to 100% from 60%

21 Developments since Takeover of operations of Skopje and Ohrid Airport AKFEN IPO Riga Commercial Areas tender AKFEN SPO TAV started operations in Riga Airport Preferred bidder in Medina Tender %50 Rights Issue TAV Tunisia minority share sale aggreement Change in customs law TAV Tunusie minority share sale to PAIDF Enfidha Airport started the operations Removed from the MSCI Small Cap Index Change in Duty Free Limits Added to MSCI Turkey Index 3 TAV Tunise stake sale to IFC Havas stake sale announcement 2 1 0

22 Ownership Structure (as of 30 September, 2011) 22 Shareholder Structure Founding Shareholders 1. Tepe Insaat Sanayi A.Ş. (5) 40.3% (1) 26.1% Turkish integrated conglomerate focused on infrastructure and construction 2. Akfen Holding A.Ş. Holding company operating in the construction, seaport, REIT and energy sector 3. Sera Yapi Endustrisi A.Ş. (4) 3.5% (3) 4.0% (2) 26.1% Focused on construction in Turkey & MENA region 4. Other Non-floating 5. Other Free Float Other shareholders 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 446,544 (0.01%) shares in the free float - Schroders has (5.02%) shares in the free float as of January TAVHL effective free float is 40%

23 Worldwide traffic outlook up to 2030 Passenger traffic growth by airline domicile North America % 3.1% Europe CIS 4.2% 3.8% % 4.3% Middle East % 5.0% Latin America % 5.2% Africa % 4.9% Asia-Pacific % 4.9% Source: Airbus Global Markets Outlook ( ). World % 4.3% The region where TAV operates is projected to experience the highest passenger traffic growth worldwide over the next 20 years 23

24 No. 1 Airport Terminal Operator in Turkey with Strong Growing Presence in the Broader Region 24 Asset overview / catchment area PAX (in millions) 35.0 No.1 Airport operator in Turkey Enfidha Istanbul Batumi Tiblisi Tbilisi Ankara Gazipasa TAV TAV operates in Turkey s 3 largest cities Izmir 22.0 Skopje 20.0 Ohrid Medinah 15.0 Monastir TAV has cornered in Turkey s 3 largest cities Since IPO TAV has expanded into the broader region, winning concessions and/or BOTs in Georgia, Tunisia, and Macedonia Further opportunities in the region as infrastructure developments reach completion TAV Istanbul Antalya Ankara Izmir Source: DHMI. (1) TAV only operates the International Terminal, which had 2.1m passengers in (2) Source: DHMI. TAV (1) TAV is the leading airport operator in Turkey with a c.41% market share (2) and its terminals handling 48m passengers in 2010

25 25 TAV vs Other Airport Operators 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 Regular capital expenditure with bulk investments time-to-time If concession, annual concession payment

26 26 Turkish Aviation Market and TAV Airports Total Passenger Traffic of TAV Airports by year (mn) Total Passenger Traffic of Turkish Aviation Market by year (mn)

27 Growth Rates of Pax Number in Selected Airports 27 TAV Airports Fraport World Aeroports de Paris BAA Europe AENA Schiphol % -3-3 TAV 3% TAV Airports Fraport World AENA Europe Schiphol Aeroports de Paris BAA 13 TAV 13% % 0-3 Source: ACI

28 28 Favorable Economic and Demographic Backdrop Flows adding most movements, 2017 v Substantial market size 6th largest economy in Europe 16th largest economy in the world Expected to beat the market 9,0 4, ,7 3,1 GDP Growth Rate 1,7 1,5 Turkey Emerging Europe EURO Area Sizable population with favorable demographics 2 nd largest population in Europe 8% 15% 64% 50% 28% 35% Turkey EU Source: Eurocontrol Source: IMF

29 29 Tourism Tourist Arrivals increased by 6% in 2010 International Tourist Arrivals by Country 6% Turkey # 7 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 Countries /08 10/09 1-France 77, ,9 80,9 79,2 76,8 76,8-3,0 0 2-USA 51,2 49, ,9 55,0 59,7-5,1 8,7 3-China 31,2 46,8 49,9 54,7 53,0 50,9 55,7-4,1 9,4 4-Spain 46,4 55, ,7 57,2 52,2 52,7-8,8 1,0 5-Italy 41,2 36,5 41,1 43,7 42,7 43,2 43,6 1,2 0,9 6-UK 23, ,7 30,9 30,1 28,2 28,1-6,4-0,2 7-Turkey 9,6 20,3 18,9 22,2 25,0 25,5 27,0 2,0 5,9 8-Germany 19 21,5 23,6 24,4 24,9 24,2 26,9-2,7 10,9 9-Malaysia 10,2 16,4 17, ,1 23,6 24,6 7,2 3,9 10-Mexico 20,6 21,9 21,4 21,4 22,6 21,5 22,4-5,2 4,4 World ,8 6,6 Source :UNWTO

30 30 Earnings Visibility AERONAUTICAL NON-AERONAUTICAL Landside Agreed passenger service charge of airports / terminals depending on project Ankara and Izmir have revenue guarantees (fixed PSC and volume growth p.a.) Check-in counter, bridge Passenger & ATM 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 Parking, Landing and lighting fees 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

31 Revenue sources 31 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

32 32 Concession Overview Airport Istanbul Ataturk Ankara Esenboga Izmir A.Menderes Gazipasa Tbilisi Batumi Monastir&Enfidha Type/Expire TAV Stake Scope Concession (Jan. 2021) BOT (May 2023) BOT (Jan. 2015) Concession (May 2034) BOT (Feb. 2027) 2010 Pax(mppa) 100% Int'l+Dom. 32,1 fee/pax Int'l fee/pax dom. US$15, 2.5 (Transfer) 100% Int'l+Dom. 7, % Int'l 2, Volume Guarantee 3 No 0,6 M. Dom., 0,75 Int'l for 2007+%5 p.a 1.0m Int l for %3 p.a. Concession Fee $140m/yr + VAT Net Debt* 177m - 104m - 10m 100% Int'l+Dom. - 5 TL4 No $ VAT 16m 76% Int'l+Dom. 0,82 US$22 US$6 No - 14m BOT (Aug. 2027) 76% Int'l+Dom. 0,09 US$12 US$7 No - - BOT+Concession 11-26% of 67% Int'l+Dom. 3,9 9 1 No revenues from 360m (May 2047) 2010 to 2047 Skopje & Ohrid BOT+Concession (March 2030) 100% Int'l+Dom. 0, in Skopje, 16.2 in Ohrid - No 15% of the gross annual turnover ** 48m Medinah BTO+Concession (2037) 33% Int'l+Dom. 3,3 SAR 80*** - No 54.5%**** n.a. * As of 30 September 2010 ** The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers TAV Gazipaşa shall make a yearly rent payent of US$ 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. *** SAR 80 from both departing and arriving international pax. TAV Airports will increase pax charge as per CPI in Saudi Arabia every three years **** The concession charge will be reduced to 27.3 % for the first two years that follow the completion of the construction.

33 Greece Italy Belgium France Hungary UK Germany Spain Turkey Netherlands Turkey Spain Greece Slovenia Czech Republic Slovakia Croatia Hungary Poland Latvia Russia Romania Bulgaria Serbia Bosnia Ukraine Upside potential to closest peer 2005A 2006A 2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E 33 Turkey Strong Economic Fundamentals Comments 2nd largest country in Europe (>70m people) 6th largest economy in Europe; 16th largest economy in the world (by GDP) Nominal GDP growth of 9.0% p.a. over the last five years, and recorded 8.2% real GDP growth in 2010, well ahead of EU 27 average of 1.8% and Spain of (0.2%) Despite this, GDP per capita is still one of the lowest in Europe The Turkish economy has one of the lowest public debt levels in Europe Demographics support further market growth in the long term 64% of population between ages of 15-60, 28% between 0-14 and 8% above 60 Passport ownership still in the low teens 3.9 million Turkish immigrants living in Europe offer a resilient traffic flow Source: EIU. (Total debt as % of GDP) 142% (US$ in billions) Turkish GDP growth European public debt levels (2010) GDP per capita (2010) % ,9% 4,7% 0,7% (4.7%) ,2% 4,6% ,5% 4,1% 4,1% 4,0% Nominal GDP Real GDP growth (%) Source: Datamonitor, IMF. Note: E based on IMF forecasts. (US$ in thousands) % 10% 5% 0% (5%) 100% 82% 75% 73% 69% 54% 49% 35% 27% Source: EIU. Source: EIU, World Bank and IMF. Strong historic GDP growth trajectory, but still significant upside potential in GDP per capita

34 34 Istanbul Atatürk Airport (100%) Largest in the region Passenger traffic (m) Main hub and home base for Turkish Airlines One of the fastest growing airports in Europe & 39 th busiest airport in the world Revenue of 319 million in million EBITDAR in 2010, implies 72% margin 11,4 12,1 15,6 Int'l Domestic 23,2 21,3 19,3 28,6 29,8 32,1 2.5 Transfer Fee (from Int l Pax) Terminal Expansion completed 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 (2010) Domestic International THY (%65) Lufthansa (%2) Atlas Jet (%2) MNG (%2) THY (%75) Onur Air (%14) Atlas Jet (%8) Other (%3) Source: DHMİ

35 35 Ankara Esenboga Airport (100%) Passenger traffic (m) Newest in the region Int'l Domestic 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 2,8 2,8 3,3 3,8 4,5 5,0 5,7 6,1 7, Source: DHMI Air Traffic Movement per airline (2010) Domestic International THY (%38) Lufthansa (%12) Pegasus (%11) Other (%38) THY (%83) Pegasus (%12) Other (%5) Source: DHMI

36 36 Izmir Adnan Menderes Airport (100%) Passenger traffic (m) Third largest city with the second biggest port in Turkey Major tourist destination Operations commenced in September 13, ,5 1,4 1,5 1,7 Int'l 1,5 1,6 1,7 1,7 2,1 Diversified customer base Source: DHMI (*) International passengers only Air Traffic Movement per airline (2010) Sun Express (%32) Pegasus (%14) Lutfhansa (%7) Other (%47) Source: DHMI

37 2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E 37 Country overview: Georgia Comments Georgia GDP growth Population: 4.4m (1.5m in Tbilisi the capital) Located on the east of Black Sea, Georgia controls most of the trade routes through Caucasus Mountains Constructions of several oil and gas pipelines have proved the strategic location of Georgia One of the fastest growing economies among Former Soviet Union until the dispute with Russia on Abkhazia and South Ossetia Presidential-democratic form of government Strong tourism potential (rich history, culture, climate), wide catchment area (US$ in billions) % Source: IMF % % 4.8% 4.8% 4.8% 4.8% 6.4% (3.8%) Nominal GDP Real GDP growth (%) 15% 10% 5% 0% (5%) Travel and Tourism indicators Population mix International tourist arrivals (millions), 2009 = 1.5m International tourism receipts (US$ millions), 2009 = 470m 1,600 1, years old or more 15% 0-14 years old 19% International tourist arrivals (thousands) International toursim receipts (US$ millions) years old 66% Source: World Economic Forum Report. Source: IMF.

38 38 Tbilisi International Airport (76%) 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 ( mn) 0,82 0,71 0,70 0,62 0,55 0,57 0,40 0,32 0, Source: Georgian Civil Aviation Authority Air Traffic Movement per airline (2010) Georgian (%30) THY (%13) Armavia (%9) Other (%48) Source: Georgian Civil Aviation Authority

39 39 Batumi International Airport (76%) Passenger traffic ( mn) Operations in the terminal commenced in May 26, ,81 0,88 0,96 Second biggest city of Georgia with strategic importance 0, Note: Domestic Passenger numbers included Hopa Terminal Passengers Source: Georgian Civil Aviation Authority Air Traffic Movement per airline (2010) THY (%26) Georgian A/W (%15) Air Batumi (%12) Other (%46) Source: Georgian Civil Aviation Authority

40 Country overview: Tunisia Comments Population: 10.5m (capital Tunis population 728,000) Privatisation policies of the government have pushed the economy forward over the past decade Fairly well developed infrastructure (in particular for air and rail transport 37th place in the World Economic Forum Competitiveness Rankings) Increasingly popular as a holiday destination, with 90% of travellers visiting Tunisia preferring air transportation December 2010 marked the beginning of the Jasmine revolution, a series of protests and social unrest sparked by the self-immolation of 26-year-old Mohamed Bouazizi The wave of demonstrations subsequently led to the ousting of President Zine El Abidine Ben Ali and put an end to his 23-year rule On 3 March 2011, the president announced that elections to a Constituent Assembly would be held on 23 October 2011 Travel and Tourism indicators 8.0% 6.0% 4.0% 2.0% Tunisia Northern Africa Africa Source: IMF, African Economic Outlook.org Tunisia Real GDP growth Population mix International tourist arrivals (millions), 2009 = 6.9m International tourism receipts (US$ billions), 2009 = 2.8bn 7,500 6,000 4,500 3,000 1, years old or more 7% 0-14 years old 26% International tourist arrivals (thousands) International tourism receipts (US$ millions) Source: World Economic Forum Report. Source: IMF years old 67%

41 41 Monastir International Airport (67%*) TAV started to operate in January 1, 2008 Tunisia has potential to be the primary hub of Africa in near future 90% of travelers visiting Tunisia prefer air transportation 2,9 2,8 Passenger traffic (m) 3,7 4,1 4,2 4,2 4,2 3,8 3,9 Selected as the Best Emerging Airport in Africa, surpassing all other African airports Source: TAV Tunisie * TAV sold 15% of shares of TAV Tunisie SA to IFC in and 18% of shares to PAIDF in June 2010 Air Traffic Movement per airline (2010) Tunis Air (%30) Nouvelair Tunisa (%26) Air Berlin (%4) Other (%40) Source: TAV Tunisie

42 42 Enfidha International Airport (67%) TAV started to operate in December, 2009 The Enfidha International Airport, is located 65 kilometers from the Monastir International Airport and has the potential to become one of the major air travel hubs in Africa and is a crucial facility for Tunisia s tourism industry due to its proximity to major tourist destinations. TAV Tunisie reached agreements with many prominent airlines and tourism agencies of the region to increase the traffic at Enfidha. As a result of intensive marketing efforts, ground handling contracts were signed with nearly 30 airlines, and an agreement was reached with the world s leading cargo operator DHL for the operation of the cargo center at Enfidha.

43 2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E 43 Country overview: Macedonia Source: World Economic Forum Report. Comments Population: 2.1m Skopje (capital) has over 500,000 inhabitants Skopje has deep historical connections with Turkey and still harbours large population of Turks and Albanians Important crossroads of trade in Balkan region Adoption of visa liberalization for Macedonia in December 2009 has freed the traffic between Macedonia and EU member states comprising 500 million citizens 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 Travel and Tourism indicators (US$ in billions) % 5.0% Source: IMF. Note GDP at current prices. 9.7 Macedonia GDP growth (0.9%) 0.7% 3.0% 3.7% 4.2% 4.0% 4.0% Nominal GDP Real GDP growth (%) Population mix 15% 10% 5% 0% (5%) International tourist arrivals (thousands), 2009 = 259k International tourism receipts (US$ millions), 2009 = 218m years old or more 11% 0-14 years old 21% International tourist arrivals (thousands) International toursim receipts (US$ millions) Source: IMF years old 68%

44 44 Skopje and Ohrid International Airports (100%) We were awarded the tender on September 2, 2008 Passenger traffic ( 000) TAV started to operate Skopje and Ohrid Airports on 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 removal of visa requirements has freed traveling between Macedonia and 25 out of 27 EU member states with 500 million citizens Skopje Ohrid Air Traffic Movement per Airline (Skopje-2010) Adria (%11) Malev (%9) Austria Airways (%8) Other (%72)

45 2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E Country Overview: Saudi Arabia 45 Comments Saudi Arabia GDP growth Population: 27.1m (US$ in billions) Occupies 80% of the Arabian peninsula Saudi Arabia sits on more than 25% of the world s known oil reserves, with a production capacity of 10 million barrels per day Petroleum sector accounts for 55% of total GDP Part of the WTO and OPEC, where it plays a leading role % % % % % % % 4.6% 4.2% 15% 10% 5% Saudi Arabia has been ruled since its foundation by the Al Saud dynasty 0 0% Saudi Arabia is home to the two holiest sites of Islam (Mecca and Medinah) Source: IMF. Nominal GDP Real GDP growth (%) Travel and Tourism indicators Population mix International tourist arrivals (millions), 2010 = 12 International tourism receipts (US$ billions), 2010 = 7 15,000 12,500 10,000 7,500 5,000 2, years old 3% 0-14 years old 32% International tourist arrivals (thousands) Incoming toursim receipts (US$ billions) years old 65% Source: Euromonitor, World Economic Forum Report. Note: International tourism receipts figures not available before Source: Euromonitor.

46 Medinah Airport (33%) 46 Summary First full scope airport privatisation in Saudi Arabia Consortium with Al Rajhi Holding Group and Saudi Oger Ltd, each having a 33.3% stake Total Capex of $1 1.5bn; TAV share of $ m. Medinah benefits from strong religion-driven pilgrimage traffic growth Operating rights of the new terminal for 25 years on a BTO model basis after take over of operations (expected in first half of 2012) Runways 2 runways: 3,850m x 45m and 3,050m x 45m Source: DHMI Passenger traffic ( 000) Medina Mecca Jeddah Note: Haji and Umrah refers to people making pilgrimage to Mecca.

47 ATU Duty Free 47 ATU is Turkey s leading duty free operator chain, established 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 airports 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.

48 48 ATU Duty Free (50%) ATU is the sole duty free operator at Istanbul Atatürk, Ankara, Izmir, Tbilisi, Batumi, Enfidha, Skopje and Ohrid Competitive concession fee paid to TAV for ATÜoperated shops in Ataturk Airport ATÜ commenced operations in Riga International Airport (Latvia), starting from January 2011, contributing around 4.7m revenue in the first nine months of Financial Data ( m) Change Total Revenues ,0 17% EBITDA ,7 30,8 11% EBITDA Margin 3.5% 6.4% 9.1% 9,5% 9,0% - Spend per pax ( ) % Note: Figures imply 100% of ATU Revenue ( m) Spend Per Pax ( )* % % % Duty Free Spend Per Pax ( ) * 9M11 9M10 % % ATU Average % % Istanbul % % * Latvia was not included in duty free spend per pax spend calculation Q 2Q 3Q 4Q

49 49 Customs Law Products* As of Tobacco Products Alcohol - Beverages with more than 22% alcohol such as whiskey and raki - Beverages with less than 22% alcohol such as wine and champaigne 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 49

50 50 BTA Catering Services 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 passengers and the terminal personnel, are managed by BTA Catering.

51 BTA Catering Services (67%) 51 Financial Data BTA is the food and beverage operator at Istanbul Ataturk(Int l and domestic terminal), Ankara, Izmir, Tbilisi and Batumi, Monastir, Enfidha, Skopje and Ohrid Total revenue increased by 27% in 2010 Concession fees: BTA pays c40% of its revenues to TAV ( m) * 2008* 2009* 2010* Change Total Revenues ,1 75,0 27% EBITDA ,2 11% EBITDA Margin 8.6% n.m. 6.0% 11% 10% - Spend per pax ( ) ,6-21% 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 ( )* 75,0 58,1 59,1 50,3 29, ,9 21, ,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 1,6

52 Havaş Ground Handling 52 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.

53 Havaş Ground Handling (65%) 53 Total revenue of Havas increased by 30% in 2010 Operating at 22 airports in Turkey Havaş has been chosen 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 on 12 April, 2010 Financial Data ( m) Change Total Revenues ,5 30% EBITDA ,5 6% EBITDA Margin 11.2% 18.7% 23.3% 19.2% 15,6% - # Aircrafts handled ( 000) ,7 33% Figures imply 100% of Havas Revenue ( m) Aircrafts Handled* ( 000) TGS Only HAVAŞ Only HAVAŞ + TGS ,1 99,5 108,1 120,6 125,9 163, M10 9M11 9M10 9M11 9M10 9M11 * THY flights served by Havas at Istanbul Ataturk Airport in 2010

54 54 Havaş, TGS and North Hub Operations Havaş can be divided in five operational units Passengers services Aircraft services Cargo / Postal services Flight operation, freight control and communication services Expansion into northern Europe through acquisition of 50% stake in North Hub Services Riga January 2010 Helsinki July 2010 Stockholm June 2011 Representation services Exceptional service coverage throughout Turkey TGS, operates at a total of six airports in Turkey and provides ramp, operation, cargo and passenger services 11,012 employees Havaş & TGS coverage (Turkey) North Hub coverage (Northern Europe) North Hub coverage Sweden Finland Latvia Denmark Lithuania Poland

55 Other Services 55 TAV O&M (100%), incorporated in 2004 Commercial area allocations, maintenance and Lounges TAV IT (99%), become a separate entity in 2005 Airport IT services, software and hardware sales TAV Security (100%), became a separate entity in 2006 Security service provider in Istanbul, Ankara, Izmir and Gazipaşa TAV Latvia (100%) incorporated in 2010 TAV Airports commenced the management of all Commercial Areas on January 1st, 2011 including DutyFree, Food&Beverage and other Retail areas for 10 years Financial Data ( m) Change Total Revenues ,7-8% EBITDA ,6 n.m. EBITDA Margin 17.3 n.m. n.m. 30 n.m. - Note: All periods include TAV Holding, TAV O&M, TAV IT and TAV Security In 2009, 9million one-off gain was recorded due to the sale of TAV Tunisie shares to IFC In 2010, approximately 5 million one-off expense was recorded due to consultancy charges Revenue ( m) Revenue Breakdown ( 2010) 38,8 50,3 54,5 66,1 60,7 TAV Security 14% Holding 20% TAV O&M 50% TAV IT 16%

56 Share Performance (as of November 02, 2011) 56 Closing Price 8.04 Avg. DailyVol.* (USD) 6mn 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 ($) Market Cap (USD) 1.6bn Free Float 44% Foreign Ownership 84% TAVHL ($) Relative to ISE-100 Effective Free Float 40% Share Price Performance % Weekly 1M 3M Year to Date Since IPO TL -2% 9% 1% 7% 5% USD -3% 15% -3% -7% -18% Relative to ISE % 17% 12% 27% -17% Notes: This page was prepared with market data of November 02, * Jan 2011 to date

57 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, TAV Macedonia and TAV Gazipasa, which are in the application of IFRIC 12 are assessed by the management as 0%, 0%, 15%, 5%, 0% 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.

58 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 58

59 59 Cash Flow Hedge Accounting The Group has used material amounts of bank borrowings from foreign sources and banks. Although most of these bank borrowings have floating interest rates, the Group management and banks fixed interest rates by using derivative financial instruments. TAV İstanbul, TAV İzmir, TAV Esenboğa, TAV Tunisia, HAVAŞ and TAV Macedonia use interest rate swaps to hedge the fluctuations in Euribor and Libor rates (i.e. 100%, 49%, 100%, 85%, 50% and 100% of floating loans of TAV İstanbul, TAV İzmir, TAV Esenboğa, TAV Tunisia, HAVAŞ, and TAV Macedonia, respectively are fixed). Sensitivity Analysis The Group s principal currency rate risk relates to changes in the value of the Euro relative to TRL and the USD. The Group manages its exposure to foreign currency risk by entering into derivative contracts and, where possible, seeks to incur expenses with respect to each contract in the currency in which the contract is denominated and attempt to maintain its cash and cash equivalents in currencies consistent with its obligations. The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies, both short-term and long-term purchase contracts. The analysis excludes net foreign currency investments. A 10 percent strengthening / (weakening) of EUR against the following currencies at 30 September 2011 and 31 December 2010 would have increased / (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. 30 September 2011 Equity Strengthening Weakening Profit or loss Strengthening Weakening of EUR of EUR of EUR of EUR USD TRL Other Total December 2010 USD TRL Other Total

60 Dividend Policy 60 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 authorizes 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 net profit in its 2009 & 2010 financials, it did not distribute any dividends to its shareholders due to accumulated loss in the TR-GAAP financials.

61 Corporate Governance Rating 61 The Corporate Governance Rating Report for TAV Airpors was prepared by RiskMetrics Group - Institutional Shareholder Services (ISS), a global corporate governance rating company with official authorization to assign corporate governance ratings in accordance with the Capital Markets Board (CMB) Corporate Governance Principles in Turkey. TAV Airports is rated at (9,09) in total average in its Corporate Governance Rating Report. Final rating grades are determined by the separate weighting of four sub-categories within the framework 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 Shareholders Public Disclosure and Transparency Stakeholders Board of Directors Total

62 Management Team 62 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 Yiğit Oğuz Duman Airport GMs Kemal Ünlü Erkan Balcı Nuray Demirer Metin Kibar Mete Erkal Zoran Krstevski Service Companies GMs Ersan Arcan Sadettin Cesur Müjdat Yücel Turgay Şahan 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 Human Resources Director GM, TAV Istanbul GM, TAV Izmir GM,TAV Esenboga GM Deputy, TAV Tunisie GM, TAV Georgia GM, TAV Macedonia GM, ATU GM, BTA GM, HAVAS GM, TAV Security GM, TAV IT GM, TAV O&M

63 63 Board of Directors Board Member Hamdi Akın (Chairman) Ali Haydar Kurtdarcan (Vice Chairman) Dr. Sani Şener (Member and CEO) İbrahim Süha Güçsav (Member) Prof. Dr. Abdullah Atalar (Member) Önder Sezgi (Member) Ahmet Ersagun Yücel (Member) Dr. Cem Kozlu Pierre de Champfleury 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

64 64 Macro Outlook Estimates Start After CAGR Georgia GDP, current prices (US $) % GDP per capita, current prices % GDP based on (PPP) per capita GDP % Inflation, average consumer prices % Population % Latvia GDP, current prices (US $) % GDP per capita, current prices % GDP based on (PPP) per capita GDP % Inflation, average consumer prices % Population % Macedonia GDP, current prices (US $) % GDP per capita, current prices % GDP based on (PPP) per capita GDP % Inflation, average consumer prices nm Population % Tunisia GDP, current prices (US $) % GDP per capita, current prices % GDP based on (PPP) per capita GDP % Inflation, average consumer prices % Population % Turkey GDP, current prices (US $) % GDP per capita, current prices % GDP based on (PPP) per capita GDP % Inflation, average consumer prices % Population %

65 65 Consolidated Income Statement (Amounts expressed in mn Euro) 9M11 9M10 Construction revenue 64,8 14,9 Total operating income 610,8 537,0 Sales of duty free goods 148,2 120,0 Aviation income 146,6 121,4 Ground handling income 138,9 129,9 Commission from sales of duty free goods 63,8 56,9 Catering services income 38,6 34,5 Other operating income 26,3 31,5 Construction expenditure (64,8) (14,7) Operating expenses (509,1) (464,8) Cost of catering inventory sold (12,9) (12,9) Cost of duty free inventory sold (57,1) (48,2) Cost of services rendered (40,4) (30,7) Personnel expenses (176,9) (158,9) Concession rent expenses (102,2) (95,3) Depreciation and amortization expense (48,4) (43,5) Other operating expenses (71,3) (75,3) Operating profit 128,0 104,0 Finance income 21,8 11,3 Finance expenses (81,3) (61,6) Profit before income tax 68,5 53,7 Income tax expense (31,3) (14,3) Profit for the period from continuing operations Attributable to: Owners of the Company 35,2 33,5 Non-controlling interest 2,0 5,9 37,2 39,4 Other Financial Data: Adjusted EBITDA * 204,9 172,5 Adjusted EBITDAR * 307,1 267,8 Summary Cash Flow Data: Net cash provided by (used in): Operating activities 240,8 150,4 Investing activities (78,5) 73,2 Financing activities (140,8) (228,7)

66 Consolidated Balance Sheet 66 9M ASSETS Property and equipment 170,5 169,5 Intangible assets 34,5 37,9 Airport operation rights 773,5 734,3 Other investments 0,0 0,0 Goodwill 154,0 154,0 Prepaid rent expenses 97,8 82,3 Trade receivables 99,2 113,8 Other non-current assets 0,9 0,6 Deferred tax assets 73,8 79,5 Total non-current assets 1.404, ,9 Inventories 19,7 14,0 Prepaid concession expenses 120,7 122,6 Trade receivables 88,0 77,7 Due from related parties 4,4 5,1 Derivative financial instruments 0,0 0,0 Other receivables and current assets 30,2 33,3 Cash and cash equivalents 53,6 32,4 Restricted bank balances 326,0 382,4 Total current assets 642,7 667,6 TOTAL ASSETS 2.046, ,5

67 Consolidated Balance Sheet 67 9M EQUITY Share capital 162,4 162,4 Share premium 220,3 220,3 Legal reserves 36,3 21,7 Other reserves 8,3 14,6 Revaluation surplus 1,7 2,0 Purchase of shares of entities under common control 40,1 40,1 Cash flow hedge reserve -71,1-61,7 Translation reserves -4,1 0,8 Retained earnings 57,9 37,2 Total equity attributable to equity holders of the Company 451,8 437,3 Non-controlling interest 89,0 103,1 Total Equity 540,9 540,4

68 Consolidated Balance Sheet 68 9M LIABILITIES Loans and borrowings 1.008, ,1 Reserve for employee severance indemnity 9,0 7,5 Due to related parties 11,8 14,1 Deferred income 21,7 21,7 Other payables 1,8 0,0 Deferred tax liabilities 5,8 6,3 Total non-current liabilities 1.058, ,6 Bank overdraft 2,5 2,9 Loans and borrowings 200,5 225,4 Trade payables 33,4 34,2 Due to related parties 14,8 14,0 Derivative financial instruments 124,7 105,0 Current tax liabilities 10,6 9,9 Other payables 44,6 38,1 Provisions 4,9 4,8 Deferred income 11,2 7,2 Total current liabilities 447,3 441,4 Total Liabilities 1.506, ,1 TOTAL EQUITY AND LIABILITIES 2.046, ,5

69 Consolidated Cash Flow Statement 69 9M11 9M10 CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period 37,2 39,4 Amortisation of airport operation right 26,7 24,6 Depreciation of property and equipment 17,5 14,7 Amortisation of intangible assets 4,2 4,1 Amortisation of concession and rent 102,2 95,3 Provision for employment termination benefits 4,4 3,1 Provision for doubtful receivables 6,8 0,3 Other provisions released -0,3-0,2 Discount on receivables and payables net - 0,0 Gain on sale of property and equipment -1,6-0,4 Impairment of property and equipment - 6,6 Provision for unused vacation 1,0 0,7 Provision for slow moving inventory 0,0 0,1 Reversal of / (accrued) insurance income 0,1-8,9 Other income accrual -9,5 Interest income -11,0-8,6 Interest expense on financial liabilities 62,6 55,5 Income tax expense 31,3 14,3 Discount income from concession receivable -10,8-8,0 Unrealised forex differences on statement of financial items -8,3 12,6 Cash flows from operating activities Change in trade receivables -17,1-27,1 Change in non-current trade receivables 25,4 23,5 Change in inventories -5,8-2,0 Change in due from related parties 0,7-21,2 Change in restricted bank balances 150,7 86,4 Change in other receivables and current assets 13,3 14,5 Change in trade payables -9,9-9,5 Change in due to related parties -1,6-3,5 Change in other payables and provisions 12,4 10,3 Change in other long term assets -0,3 7,9 Additions to prepaid rent expenses -106,6-97,5 Cash provided from operations 323,8 217,6 Income taxes paid -20,0-19,6 Interest paid -61,6-46,0 Retirement benefits paid -1,5-1,5 Net cash provided from operating activities 240,8 150,4

70 Consolidated Cash Flow Statement 70 9M11 9M10 CASH FLOWS FROM INVESTING ACTIVITIES Interest received 10,9 4,9 Proceeds from sales of non-controlling interest in subsidiaries - 141,7 Proceeds from sale of property. equipment and intangible assets 2,7 2,2 Acquisition of property and equipment -30,3-60,7 Additions to airport operation right -61,2-11,1 Acquisition of joint venture net of cash acquired - -3,2 Acquisition of intangible assets -0,7-0,6 Net cash provided from / (used in) investing activities -78,5 73,2 CASH FLOWS FROM FINANCING ACTIVITIES New borrowings raised 114,3 121,5 Repayment of borrowings -138,4-191,2 Change in restricted bank balances -105,2-100,3 Acquisiton of non-controlling interest -9,2 - Non-controlling interest change -2,6-59,5 Addition to finance lease liabilities 0,3 0,8 Net cash (used in) / provided from financing activities -140,8-228,7 NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 21,5-5,1 CASH AND CASH EQUIVALENTS AT 1 JANUARY 29,6 31,6 CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER 51,1 26,6

71 TAV Investor Relations 71 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 : Ali Özgü CANERİ Investor Relations Assistant Manager ali.caneri@tav.aero Tel : / 2124 Fax : Besim MERİÇ Investor Relations Senior Associate besim.meric@tav.aero Tel : / 2123 Fax :