TAV Airports Holding
Management Presentation
May 2014
Investment Highlights
Turkey is the fastest growing aviation market in Europe Passenger growth of 14% p.a. during 2002-2013 Attractive market with Projected passenger growth of 11% p.a. during 2009-2023(1) strong growth prospects Access to fast growing MENA region Istanbul is the most efficient hub for Europe, MENA Region(2) Aggressive capacity expansion plans of Turkish Airlines (seat capacity to double by 2021) (3)
Diversified, balanced portfolio with leading market positions Leading airport operator #1 airport terminal operator in Turkey with diversified portfolio 13 airports operating in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia, Croatia and Latvia & integrated structure (large catchment areas) Strong vertically integrated value chain
Strong momentum with EBITDA posting 45% CAGR between 2006 and 2013 High earnings visibility given clear / agreed regulatory framework Strong financial Proven track record of growth and profitability with attractive organic growth prospects performance and cash High financial returns and cash flow generation given fixed cost base (operational leverage) and flow generation minimal ongoing capex TAV will receive compensation for all loss of profit in case of new Istanbul airport opening before 2021 Favorable cash flow exposure to FX due to FX denominated revenue (77% of combined revenues)
Well-positioned to benefit from further organic and inorganic growth La Guardia Airport tender “Platform play” Istanbul Ataturk Airport expansion project Gazipasa runway extension
(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 2 (3) THY web site Traffic Performance
January-April FY Passengers (1) 2013 2014 Chg % 2012 2013 Chg % Ataturk Airport 15.442.716 17.199.071 11% 45,091,962 51,320,875 14% Review of first quarter of 2014: International 10.262.742 11.400.382 11% 29,812,307 34,096,770 14% Domestic 5.179.974 5.798.689 12% 15,279,655 17,224,105 13% Esenboga Airport 3.295.226 3.649.885 11% 9,273,108 10,928,403 18% The number of passengers using airports operated by TAV increased 16% (like- International 466.949 429.721 -8% 1,593,737 1,573,943 -1% for-like growth of 13%) to 20.3 million in 1Q14, on the back of organic and Domestic 2.828.277 3.220.164 14% 7,679,371 9,354,460 22% inorganic growth. Izmir Airport 2.829.804 3.088.476 9% 9,355,902 10,208,627 9% International 416.354 468.265 12% 2,410,858 2,467,436 2% The number of international passengers served at Istanbul Ataturk continued to Domestic 2.413.450 2.620.211 9% 6,945,044 7,741,191 11% grow in double digits, increasing by 12%, with 25% surge in international to Gazipaşa Airport 32.890 91.790 n.m. 79,740 363,024 n.m. international transfer passengers. Istanbul total pax growth is expected to International 8.695 28.726 n.m. 75,886 242,949 n.m. converge to 8-10 % throughout the year. as per our official guidance Domestic 24.195 63.064 n.m. 3,854 120,075 n.m. Medinah 1.614.320 2.188.087 36% 4,588,158 4,669,181 2% Istanbul growth at double-digit spearheaded by THY’s aggressive fleet expansion Tunisia (Monastir&Enfidha) 419.356 432.694 3% 3,321,244 3,437,849 4% plan. Georgia (Tbilisi&Batumi) 394.400 426.188 8% 1,387,946 1,642,597 18% Macedonia (Skopje&Ohrid) 269.029 315.000 17% 913,567 1,067,467 17% Ankara’s strong growth in domestic driven by Sun Express. Zagreb Airport 628.173 621.947 -1% 2,342,309 2,300,231 -2% (3) TAV TOTAL 24.297.741 28.013.138 15% 71,654,344 83,638,023 17% Strong domestic growth in Izmir driven by Sun Express and Pegasus while International 13.273.767 15.482.737 17% 40,871,220 47,429,862 16% Pegasus is driving international growth. 11.023.974 12.530.401 14% 30,783,124 36,208,161 18% Domestic SAS, Sun Express and Pegasus increased regular flights to Gazipasa dramatically. January-April FY
Air Traffic Movements (2) 2013 2014 Chg % 2012 2013 Chg % Ataturk Airport 117.454 131.024 12% 346,060 387,965 12% Medinah passengers increased dramatically due to easing of visa restrictions . International 79.353 89.561 13% 231,293 260,686 13% Domestic 38.101 41.463 9% 114,767 127,279 11% Tunisian passengers was relatively flat due to the political situation. Esenboga Airport 26.192 27.596 5% 74,860 85,241 14% International 4.050 3.582 -12% 13,266 13,133 -1% Georgian airports are hosting Turkish tourists and transit travelers to Istanbul. Domestic 22.142 24.014 8% 61,594 72,108 17% Izmir Airport 19.810 21.374 8% 66,417 70,057 5% International 2.958 3.328 13% 17,078 17,215 1% Macedonia is being driven mainy by WizzAir. Domestic 16.852 18.046 7% 49,339 52,842 7% Gazipaşa Airport 244 724 n.m. 578 2,577 n.m. International 75 221 n.m. 532 1,805 n.m. Domestic 169 503 n.m. 46 772 n.m. Medinah 12.705 17.011 34% 36,282 40,000 10% Tunisia (Monastir&Enfidha) 4.892 4.514 -8% 27,350 30,077 10% Georgia (Tbilisi&Batumi) 6.478 6.692 3% 23,598 23,512 0% Macedonia (Skopje&Ohrid) 3.468 3.731 8% 11,285 12,380 10% Zagreb Airport 12.118 11.322 -7% 39,038 38,894 0% Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAH and MZLZ TAV TOTAL (3) 191.243 223.988 17% 569,790 651,809 14% Note: DHMI figures for 2014 are tentative. (1) Both departing and arriving passengers, including transfer pax. International 106.987 129.076 21% 330,935 376,719 14% (2) Commercial flights only 84.256 94.912 13% 238,855 275,090 15% Domestic (3) 2013 TAV totals do not include Zagreb Airport. 3
Traffic Outlook
1. 2. 3. 4. 5. Encouraging aviation Seat Capacity Aggressive fleet Ongoing Planned outlook for Turkey increase vs. 2013 expansion plan of construction of terminal major airlines in parking stands extension in Turkey in Ataturk Ataturk Airport Airport
. The total passenger . 11% seat capacity . THY aims to . Number of parking . Terminal capacity is to traffic in Turkey is increase is double its fleet to positions will be increase 10%-15% by poised to double in expected in 2014. 450 planes by increased from the extension of the next 10 years. 2020. 102 to 164. International Terminal. Eurocontrol, projects 7% CAGR for Turkey . Pegasus aims to over the course of the increase its fleet to next seven years while 100 by 2020. Airbus expects 7% CAGR in Middle Eastern traffic growth. 4 International Scheduled Traffic Developments & Outlook
3,5 (m, pax) 2011 Seat Capacity 2011 Pax 4,0 (m, pax) 2012 Seat Capacity 2012 Pax
3,0 3,5
2,5 3,0 2,5 2,0 2,0 1,5 1,5 1,0 1,0 0,5 0,5
0,0 0,0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
4,5 (m,pax) (m,pax) 2013 Seat Capacity 2013 Pax 5,0 4,0 2103 Pax 2014 Seat Capacity 4,5 3,5 4,0 3,0 3,5 2,5 3,0 2,0 2,5 Gezi & Ramadan Effect 2,0 1,5 11% seat capacity increase vs. 2013 1,5 1,0 1,0 0,5 0,5 0,0 0,0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Source: Airport Data Intelligence (ADI) 5 State Airports Authority Turkish Aviation Market Forecast
Mn, pax Domestic International 350
CAGR (2009-23) 11%
CAGR (2012-16) 12% 207 190 172 150 9% 130 10% 118 13% 104 15% 10% 9% 86 14% 7% 20% 10% 11% 12% 14% 18% 10% 11% 16% 13% 23% 15% 18%
2009 2010 2011 2012 2013 2014e 2015e 2016e // 2023e
Source: State Airports Authority
6 New Win: Bodrum Airport
Concession type: Terminal Lease Concession amount: € 717mn + VAT Concession length: 20 years Takeover date: Domestic: upon legal approvals International: October 2015
Airlines operating flights from Bodrum
AtlasJet Onur Air Istanbul Istanbul Sabiha Gokcen Istanbul Pegasus Azerbaijan Airlines Adana Baku Ankara blu-express Brussels Rome London Deutsche Lufthansa AG Sabiha Gokcen Istanbul Munich Sun Express EasyJet Ankara Bodrum Historical Pax (mn) Bristol Sabiha Gokcen Istanbul Edinburgh Swiss International Liverpool Zurich Domestic International London Transavia Airlines Edelweiss Air Amsterdam Zurich Bodrum Dalaman 2,0 1,9 1,9 1,9 1,9 Jet2.com Eindhoven 1,8 1,8 Glasgow Izmir Leeds Rotterdam Manchester Transavia France Newcastle Paris Nottingham Turkish Airlines Inc. 1,6 1,7 Jetairfly Istanbul 1,4 1,2 Brussels Sabiha Gokcen Istanbul 0,8 0,8 1,0 Lüttich - Liege Tyrolean Airways Oostende Vienna Monarch Airlines Birmingham 2007 2008 2009 2010 2011 2012 2013 Leeds London Manchester 7 Ataturk Airport – DHMI’s Extension Plans
Domestic Terminal
International Terminal
Additional 15 new parking positions at the opposite of international terminal
THY’s Cargo Terminal
Additional 43 new parking positions and taxiway in former military area
104 existing parking positions Parking capacity to increase from 104 to 162 (+56%) Construction is ongoing and funded by DHMI.
8 Istanbul ATM Capacity vs Peers with Similar Runway Structure
Istanbul Atatürk Airport Declared ATM Capacities*
Istanbul Atatürk**: 58 ATM/hr
Zurich Airport: 68 ATM/hr
Vienna Airport : 72 ATM/hr
Zurich Airport Vienna Airport
*State Airports Authority (DHMI), Zurich Airport, Vienna Airport **Please note that runways, aprons and taxiways of Istanbul Ataturk Airport are operated by State Airports Authority (DHMI) 9 *** ATM: Air Traffic Movement Major Airports in Turkey
51,3 m Intl:34,1 m İstanbul / Sabiha Gökçen Airport Dom:17,2 m -Tender Date: 2007 -Type: BOT - Expire :2030 Istanbul / Atatürk Airport -Tender Date: 2005 -Type: Lease 18,6 m 2,6 m -Expire: 2021 Intl:6,7 m Intl:0,1 m Dom:11,9 m Dom:2,5 m Trabzon Airport
10,2 m Intl:2,5 m Dom:7,7 m 10,9 m İzmir / A. Menderes Airport Intl:1,6 m -Tender Date: 2011 -Type: BOT+Lease Dom:9,4 m - Expire :2032 Ankara / Esenboğa Airport -Tender Date: 2006 -Type: BOT Muğla / Bodrum-Milas Airport -Expire:2023 -Tender Date: 2006/2011*-Type: BOT 4,3 m Gaziantep Airport -Expire:October 22, 2015 Intl:0,6 m 3,6 m Dom:3,8 m 1,9 m Intl:1,9 m Intl:0,2 m 0,36 m Dom:1,7 m Dom:1,7 m Intl:0,24 m Dom:0,12 m Adana Airport Gazipaşa Airport -Tender Date: 2007 -Type: Lease 4,1 m -Expire:2034 Intl:3,2 m Dom:0,9 m Operated by TAV Antalya Airport Muğla / Dalaman Airport -Tender Date: 2007 -Type: Lease Not privatized -Tender Date: 2014 -Type: BOT+Lease -Expire:2024 -Expire:2039 27,0 m Intl:21,5 m Operated by others * Astaldi took over the project in 2011 Dom:5,5 m ** Pax numbers are for 2013 . To be operated by TAV*** *** Upon necessary legal approvals 10 La Guardia Airport
LaGuardia Airport LaGuardia Airport PQ The LGA Central Terminal Consortium, composed of Our Company, Aeroports de Paris (ADP) Management, Goldman Sachs (GS Global Infrastructure Partners II, L.P. and GS International Infrastructure Partners II, L.P.), Tutor Perini Corporation, Ove Arup & Partners PC, Kohn Pederson Fox Associates PC, Suffolk Construction Company, STV Incorporated and ADP Ingenierie, received preliminary qualification (“PQ”) to place a bid in the tender for the " Design / Build / Finance / Operate & Maintain LaGuardia Airport Central Terminal Building* Replacement Project " in NYC, USA held by the Port Authority of New York and New Jersey (PANYNJ). LaGuardia International Airport served a total of 27 million passengers in 2013.
* Central Building Terminal served a total of 13 million passengers in 2013.
11 28% Net Profit Growth YoY
IFRIC 12 In 1Q14, total number of passengers served increased 16%, thanks Adjusted Financials to the addition of Zagreb Airport. Like-for-like growth was 13%. In (in m€, unless stated otherwise) 1Q13 1Q14 Chg % 1Q14, Istanbul Ataturk Airport realized 12% international passenger growth. Revenue 186 190 2%
EBITDA 53 67 27% Revenue increased by 2% to €190 million in 1Q14 from €186 million EBITDA margin (%) 28.2% 35.2% 6.9 ppt in 1Q13. Revenue growth lagged passenger both mainly because of EBITDAR 87 102 16% weak Turkish Lira and weak duty free sales. The weight of aeronautical revenues in consolidated revenues was 46% in 1Q14 versus 44% in EBITDAR margin (%) 47.0% 53.6% 6.5 ppt 1Q13. FX Gain (Loss) 5 (2) n.m. Deferred Tax Income (Expense) 4 (1) n.m. EBITDA grew by 27% to €67 million in 1Q14 from €53 million in Net Profit 16 20 28% 1Q13, implying respective 35.2% and 28.2% margins in 1Q14 and Net Cash Provided from Operating 1Q13, thanks to strong operating leverage, Havas turnaround and Activities(2) 43 19 -56% favorable FX movements. Likewise, EBITDAR increased by 16% to Capex(2) (56) (25) -55% €102 million in 1Q14, reaching 54% EBITDAR margin.
Free Cash Flow(2) (13) (7) -49% On the back of strong operational performance, the bottom-line Shareholders’ Equity 534 539 1% (net profit attributable to owners of the company) came in at €20.3 Net Debt 936 1.043 11% million in 1Q14 versus €15.9 million in 1Q13, despite FX and deferred Average number of employees 13,085 13,425 3% tax turning to loss in 1Q14.
Number of passengers (m) 17.6 20.3 16% Revaluation of predominantly TRL and USD denominated monetary - International 9.5 11.1 17% assets resulted in FX loss, due to appreciation of EUR. Temporary - Domestic 8.1 9.2 14% differences in airport operation rights, as well as loans and borrowings resulted in deferred tax expense in 1Q14. Duty free spend per pax (€) (1) 15.9 14.1 -11% (¹) Transfer numbers are tentative and subject to change
(2) IFRS Consolidated net debt came at €1,043 million at 1Q14 versus €936 Source: TAV Airports Holding, DHMI, TAV Tunisia, TAV Macedonia, Georgian Aviation Authority, million at 1Q13. Increase in net debt was 11%, due to ongoing TIBAH , MZLZ investments and dividend payments.
12 Strong Bottom-Line
Consolidated Revenue (€m) EBITDA (€m) Net Profit (€m)
27% 28% 2%
190 186 67 20 53 16
1Q13FY11 1Q14FY12 1Q13FY11 1Q14FY12 1Q13FY11 FY121Q14
Consolidated Revenue (%) EBITDA (%) Opex (%) Personnel Concession rent Aviation Duty-free Ground-handling F&B Other Istanbul Other Airports BTA HAVAŞ Other D&A Other Services Services rendered Catering Duty-free 0% 8% 5% 20% 7% 0% 5% 4% 20% 1% -4%4% 7% 34% 4% 31% 12% 11% 37% 17% 39% 10% 9% 17% 17% 13% 16% 80% 12% 27% 69% 22%
24% 23%
1Q13 1Q14 13 * IFRIC 12 adjusted Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s (1Q14)
EBITDA Revenue (€m) 1Q13 1Q14 Chg.(%) (1Q14, €m) Revenue EBITDA Margin (%) Net Debt Airports 140.3 141.3 1% Airports 141.3 56.7 40% 871 Istanbul 102.8 102.4 0% Istanbul 102.4 45.5 44% 176 Ankara 11.9 12.1 1% Ankara 12.1 7.0 58% 83 Izmir (including TAV Ege) 10.1 10.5 5% Izmir (including TAV Ege) 10.5 2.4 23% 191 Gazipasa 0.1 0.2 88% Gazipasa 0.2 -0.4 n.m. 18 Tunisia 4.6 4.9 5% Tunisia 4.9 -2.2 n.m. 349 Georgia 6.9 7.3 7% Georgia 7.3 3.8 51% (3) Macedonia 3.9 3.9 2% Macedonia 3.9 0.6 16% 57 Services 67.5 70.5 4% Services 70.5 9.5 13% 172 Havas 23.4 22.9 -2% Havas 22.9 3.0 13% 65 BTA 26.2 27.9 7% BTA 27.9 1.0 4% 2 Others 17.9 19.6 10% Others 19.6 5.5 28% 105 Total 207.8 211.7 2% Total 211.7 66.2 31% 1.043 Elimination -22.2 -22.2 Elimination -22.2 0.5 Consolidated 185.6 189.6 2% Consolidated 189.6 66.7 35% 1.043 ATÜ* 61.3 56.2 -8% TGS* 21.0 21.4 2% TIBAH* 7.2 9.6 33%
Number of Employees (eop) 1Q13 1Q14 EBITDA (€m) 1Q13 1Q14 Chg.(%) Istanbul 2,681 2,766 Airports 50.9 56.7 11% Ankara 885 935 Istanbul 42.1 45.5 8% Izmir+Ege 681 849 Ankara 5.8 7.0 21% Tunisia 748 777 Izmir (including TAV Ege) 2.2 2.4 11% Gazipasa 23 34 Gazipasa -0.3 -0.4 34% Georgia 770 766 Tunisia -2.0 -2.2 12% Macedonia 649 632 Georgia 3.1 3.8 20% HAVAS 3,749 3,537 Macedonia 0.0 0.6 n.m. BTA 2,093 2,357 Services 1.7 9.5 444% Holding 108 104 Havas -2.2 3.0 n.m. O&M 296 296 BTA 1.9 1.0 -48% IT 175 213 Others 2.1 5.5 164% Security 220 290 Total 52.7 66.2 26% Latvia 3 4 Elimination -0.2 0.5 Akademi 5 11 Consolidated 52.5 66.7 27% TOTAL 13,086 13,571 ATÜ* 6.2 5.2 -16% TGS* 1.5 4.0 167% TIBAH* 1.4 2.5 79% *Consolidated with equity method 14 Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s (FY13)
EBITDA Revenue (€m) 2012 2013 Chg.(%) (2013, €m) Revenues EBITDA Margin (%) Net Debt Airports 614.8 658.0 7% Airports 658.0 303.5 46% 652 Istanbul 413.8 442.1 7% Istanbul 442.1 210.6 48% (1) Ankara 44.6 48.1 8% Ankara 48.1 21.4 45% 84 Izmir (including TAV Ege) 56.5 60.0 6% Izmir (including TAV Ege) 60.0 27.3 46% 155 Gazipasa 0.5 1.8 251% Gazipasa 1.8 -0.1 -8% 16 Tunisia 50.6 51.9 3% Tunisia 51.9 17.0 33% 344 Georgia 30.9 35.3 14% Georgia 35.3 21.6 61% (2) Macedonia 17.8 18.8 6% Macedonia 18.8 5.7 30% 55 Services 328.6 344.9 5% Services 344.9 77.4 22% 222 Havas 140.5 29.1 21% 58 Havas 130.6 140.5 8% BTA 116.0 11.2 10% 2 BTA 105.8 116.0 10% Others 88.3 37.1 42% 162 Others 92.2 88.3 -4% Total 1,002.9 380.8 38% 874 Total 943.4 1,002.9 6% Elimination -96.7 -99.3 3% Elimination -99.3 -0.2 0 Consolidated 846.6 903.6 7% Consolidated 903.6 380.6 42% 874
Number of Employees (eop) 2012 2013 EBITDA (€m) 2012 2013 Chg.(%) Istanbul 2,640 2,724 Airports 267.4 303.5 13% Ankara 872 921 Istanbul 181.1 210.6 16% Izmir+Ege 623 686 Ankara 19.1 21.4 12% Tunisia 748 775 Izmir (including TAV Ege) 26.8 27.3 2% Gazipasa 19 29 Gazipasa -0.9 -0.1 -85% Georgia 794 806 Tunisia 21.7 17.0 -22% Macedonia 648 626 Georgia 17.5 21.6 24% HAVAS 3,852 3,648 Macedonia 2.2 5.7 154% ATU - - Services 65.5 77.4 18% BTA 2,086 2,255 Havas 18.3 29.1 59% Holding 102 99 BTA 10.2 11.2 10% O&M 296 307 Others 37.1 37.1 0% IT 197 210 Total 332.9 380.8 14% Security 233 270 Elimination -5.1 -0.2 -96% Latvia 3 3 Consolidated 327.8 380.6 16% Medinah(100%) - - Akademi - 11 TOTAL 13,113 13,370
15 Dividends
Dividend Yield (%) Dividend History (€m)
Dividends Paid Net Income Payout Ratio
140 133 80% 3,3 3,4 74% 124 120 70% 2,7 50% 60% 100 50% 50% 80 66 62 40% 60 53 39 30% 40 20%
20 10%
0 0% 2011 2012 2013 2011 2012 2013
* TRL Payout ratios are 79%, 52% and 61%, respectively.
The TAV Airports’ dividend policy of 50% of the consolidated IFRS net profit has been approved by the General Assembly in 2014.
Accordingly TRL 0.55 (55%) gross cash dividend per share having nominal value of TL 1 has been distributed to our shareholders and total gross cash dividend distribution amount is TRL 199,008,765 for 2013.
16 CAPEX Development & Outlook
Quarterly Capex (€m)
Ege Other 66
52 51 42
23 1Q14 Capex mainly due to Izmir Adnan Menderes Domestic Terminal Construction 10 11 7 4 6
1Q13 2Q13 3Q13 4Q13 1Q14
Total EPC* EPC Cumulative Cumulative (¹+²+3) 2012¹ 2013² 20143 Airport Scope (€m) (€m) (€m) (€m) (€m) (€m) % Completed Re-construction of the domestic Izmir terminal 266 264 272 39 210 23 99 % Medinah Re-construction of the terminals and (33%) extension of the runway 248 181 196 52 101 42 74 %
17 *While EPC capex does not include capitalized interest costs and other charges, IFRS capex does. Medinah EPC calculated at 1.3 EUR/USD Debt Structure
Net Debt (eop, €m) 1Q13 2013 1Q14 Door to Door Maturity 8.1 Years Airports 794 652 871 Istanbul 209 (1) 176 Average Maturity 5.6 Years Ankara 91 84 83 Izmir (including Ege) 57 155 191 Average € Cost of Debt (Hedged*) 5.7 % Gazipasa 17 16 18 Tunisia 355 344 349 Net Debt / 2013 FY EBITDA 2.7x Georgia 5 (2) (3) Macedonia 60 55 57 Services 142 222 172 *89 % of all loans have fixed rates. HAVAS 76 58 65 BTA (4) 2 2 -as of March 31 2014 Others 70 162 105 Total 936 874 1,043 ATÜ* 9 5 7 TGS* (3) (2) (3) Gross Debt Maturity Profile (€m) TIBAH* 97 146 169
432
231 207 225 164 71
2015 2016 2017 2018 2019 2020+
*Consolidated with equity method 18 FX Exposure of Operations (2013)
Revenues (1) Opex (1)(2) €33m €61m €158m Other; €166m Other; 3% USD; 8% USD ; 16% 22% TL; 23% €367m €239m €138m €1037m €599m €724m EUR ; TL ; 19% 51% EUR; 58%
Concession Rent Expense Gross Debt €24m €14m TL €17m USD 2% EUR 1% €129m 10% €1306m
€143m €1347m
USD 90% EUR 97%
(1) Combined figures, pre-eliminations IFRIC 12 adjusted. Includes equity pick-up (€34m) (2) Includes concession rent expenses (€143m) and depreciation (€69m). 19 FX Exposure
FX Rates
Equity Profit or loss Average Rate 31 Mar 31 Dec 31 Mar Strengthening Weakening Strengthening Weakening 1Q14 1Q13 2014 2013 2013 (€’000) of EUR of EUR of EUR of EUR 31 March 2014 EUR/TRL 3.03 2.35 3.01 2.94 2.32 USD (16,518) 16,126 (3,422) 3,422 USD/TRL 2.21 1.78 2.19 2.13 1.81 TRL - - 2,960 (2,960) Other - - (728) 728 EUR/USD 1.37 1.32 1.37 1.38 1.28 Total (16,518) 16,126 (1,190) 1,190 EUR/GEL 2.40 2.19 2.40 2.39 2.12 EUR/MKD 61.65 61.59 61.00 61.51 61.61 31 December 2013 USD (16,039) 15,607 (14,012) 14,012 EUR/TND 2.20 2.07 2.18 2.27 2.05 TRL - - (10,027) 10,027 EUR/SEK 8.86 8.50 8.94 8.94 8.34 Other - - (939) 939 EUR/SAR 5.14 4.95 5.16 5.16 4.81 Total (16,039) 15,607 (24,978) 24,978
Hedging Sensitivity Analysis
Subsidiaries, TAV Istanbul, TAV Esenboga, HAVAS, TAV Macedonia, The Group’s principal currency rate risk relates to changes in the value of the Euro relative to TAV Tunisia and TAV Ege enter into swap transactions in order to TRL and the USD. The Group manages its exposure to foreign currency risk by entering into diminish exposure to foreign currency mismatch relating to DHMI derivative contracts and, where possible, seeks to incur expenses with respect to each installments and interest rate risk to manage exposure to the floating contract in the currency in which the contract is denominated and attempt to maintain its interest rates relating to loans used. cash and cash equivalents in currencies consistent with its obligations.
100%, 100%, 43%, 80%, 85% and 100% of floating bank loans for TAV The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate Istanbul, TAV Esenboga, HAVAS, TAV Macedonia, TAV Tunisia and TAV corporate-level currency exposure. The aggregate foreign exchange exposure is composed of Ege respectively are fixed with interest rate swaps as explained in all assets and liabilities denominated in foreign currencies, both short-term and long-term Note 12. purchase contracts. The analysis excludes net foreign currency investments.
Changes in the fair value of the derivative hedging instrument A 10 percent strengthening / (weakening) of EUR against the following currencies at 31 designated as a cash flow hedge are recognized directly in equity to March 2014 and 31 December 2013 would have increased / (decreased) equity and profit or the extent that the hedge is highly effective. To the extent that the loss by the amounts shown to the left. This analysis assumes that all other variables, in hedge is ineffective, changes in fair value of the ineffective are particular interest rates, remain constant. recognized in profit or loss. 20 Equity Accounted Investees – IFRS 11
HAVAS* pre IFRS 11 post IFRS 11 Revenue Havas Solo + TGS Havas Solo EBITDA Havas EBITDA + TGS EBITDA HAVAS EBITDA + TGS Net Income Net Income Havas Net Income + TGS Net Income HAVAS Net Income + TGS Net Income
BTA** pre IFRS 11 post IFRS 11 Revenue BTA + BTA IDO BTA EBITDA BTA EBITDA + BTA IDO EBITDA BTA EBITDA + BTA IDO Net Income Net Income BTA Net Income + BTA IDO Net Income BTA Net Income + BTA IDO Net Income
2012 2013 ATÜ Revenue 255.1 277.1 EBITDA 28.0 32.9 Net Income 20.8 28.2 Net Debt 3.0 5.1 2012 2013 TGS Revenue 78.4 98.4 EBITDA 4.9 11.9 Net Income 2.7 8.1 Net Debt -6.1 -2.0 2012 2013 TIBAH Revenue 16.5 28.4 EBITDA 3.1 4.4 Net Income 2.7 3.7 Net Debt 70.3 145.7 2012 2013 BTA IDO Revenue 11.6 11.7 EBITDA 1.3 1.2 Net Income 0.8 0.5 Net Debt -0.3 -0.2 *Havas Solo defined as all companies under HAVAS consolidation – TGS **BTA defined as all companies under BTA consolidation – BTA IDO 21
Income Statement
(€m) 1Q13 1Q14 Construction revenue 51.7 22.9 Total operating income 179.1 182.3 Aviation income 50.9 56.3 Ground handling income 23.4 23.4 Commission from sales of duty free goods 50.0 46.1 Catering services income 16.9 18.4 Other operating income 37.8 38.1 Construction expenditure (51.7) (22.9) Operating expenses (156.5) (148.8) Cost of catering inventory sold (6.1) (7.2) Cost of services rendered (10.6) (10.0) Personnel expenses (61.6) (54.9) Concession rent expenses (34.9) (34.8) Depreciation and amortization expense (16.9) (17.6) Other operating expenses (26.3) (24.3) Equity pick-up 6.2 8.4 Operating profit 28.8 41.9 Finance income 10.9 7.3 Finance expenses (22.1) (23.6) Profit before tax 17.7 25.6 Income tax expense (4.6) (9.2) Profit for the period Attributable to: Owners of the Company 15.9 20.3 Non-controlling interest (2.9) (3.9) Profit for the period 13.0 16.4
22 Balance Sheet
1Q13 1Q14 1Q13 1Q14 €m €m ASSETS EQUITY Share capital 162 162 Property and equipment 157 156 Share premium 220 220 Intangible assets 22 19 Legal reserves 73 83 Airport operation rights 808 942 Other reserves -18 -18 Other investments 0 0 Revaluation surplus 1 1 Goodwill 136 136 Purchase of shares of entities under common Prepaid concession expenses 160 155 control 40 40 Trade receivables 72 56 Cash flow hedge reserve -83 -77 Other non-current assets 0 1 Translation reserves -2 -17 Deferred tax assets 100 78 Retained earnings 140 143 Equity Accounted Investees 69 83 Total equity attributable to equity holders of the Total non-current assets 1.,523 1,626 Company 534 539 Non-controlling interest 31 27 Total Equity 565 567 Inventories 7 8 Prepaid concession expenses 138 137 LIABILITIES Loans and borrowings 989 1.101 Trade receivables 80 75 Reserve for employee severance indemnity 15 13 Due from related parties 36 14 Due to related parties 11 2 Derivative financial instruments 4 1 Derivative financial instruments 152 136 Other receivables and current assets 31 29 Deferred income 29 23 Cash and cash equivalents 134 146 Other payables 9 13 Restricted bank balances 160 146 Deferred tax liabilities 2 4 Total current assets 590 556 Total non-current liabilities 1,056 1,291
TOTAL ASSETS 2,113 2,181 Bank overdraft 0 2 Loans and borrowings 240 232 Trade payables 32 28 Due to related parties 4 11 Current tax liabilities 9 9 Other payables 36 27 Provisions 7 6 Deferred income 13 9 Total current liabilities 492 324 TOTAL LIABILITIES 1,548 1,615
TOTAL EQUITY AND LIABILITIES 2,113 2,181 23 Cash Flow Statement
1Q13 1Q14 €m €m 1Q13 1Q14 CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Profit for the period 13 16 Interest received 3 3 Adjustments for: Proceeds from sale of property, equipment and Amortisation of airport operation right 10 10 intangible assets 0 1 Depreciation of property and equipment 6 6 Acquisition of property and equipment -4 -6 Amortisation of intangible assets 1 1 Additions to airport operation right -52 -19 Concession and rent expenses 35 35 Acquisition of intangible assets -1 0 Provision for employee severance indemnity 0 1 Net cash used in investing activities -53 -21 Provision for doubtful receivables 0 0 CASH FLOWS FROM FINANCING ACTIVITIES Discount on receivables and payables, net 0 0 Proceeds from borrowings 38 66 Gain on sale of property and equipment 0 0 Repayment of borrowings -57 -90 Provision set/(released) for unused vacation 0 1 Change in restricted bank balances 124 140 Interest income -3 -3 Non-controlling interest change 1 0 Interest expense on financial liabilities 20 20 Dividends paid - -65 Tax expense 5 9 Change in finance lease liabilities -1 -1 Unwinding of discount on concession receivable -3 -4 Net cash provided from financing activities 105 50
Share of profit of equity-accounted investees, net of tax -6 -8 NET INCREASE IN CASH AND CASH EQUIVALENTS 95 47 Unrealised foreign exchange differences on statement of CASH AND CASH EQUIVALENTS AT 1 JANUARY 38 96 financial position items 4 -2 CASH AND CASH EQUIVALENTS AT 31 MARCH 134 143 Cash flows from operating activities 81 82 Change in current trade receivables 1 -1 Change in non-current trade receivables 8 6 Change in inventories 0 -1 Net cash provided from operating activities decreased YoY Change in due from related parties 16 1 mainly due to working capital items. Change in restricted bank balances 98 93 Change in other receivables and current assets -7 -1 Change in trade payables -6 -13 Major capex cycle for consolidated entities has completed Change in due to related parties -10 -7 with the end of the construction in Izmir. Change in other payables and provisions 7 5 Change in other long term assets 0 0 Additions to prepaid concession and rent expenses -136 -132 Cash provided from operations 51 32 Income taxes paid -8 -10 Interest paid -16 -19 Retirement benefits paid -1 -1 Dividends from equity-accounted investees 17 17 Net cash provided from operating activities 43 19 24 IFRIC 12 & Our Adjusted Financials Policy
Introduction to IFRIC 12 IFRIC 12 booking model
Debit Credit IFRIC 12- is an accounting application treating BOT assets with special provisions 1. During Construction for guaranteed income. Ankara Esenboga Airport and Izmir Adnan Menderes Airport International Terminal, with their guaranteed passenger fee structures, BS Debt fall under the scope. BS Cash BS Construction in progress The capex we incur on our BOT assets, is routinely booked as “airport operation PL Construction Expense Construction Income right” in the balance sheet. However when there are guaranteed passenger fees in question, these fees are discounted to their NPV and subtracted from the 2. Completion of Construction “airport operation right” of the BOT in question. The remaining capex amount gets booked as “airport operation right” and the NPV of guaranteed passenger BS Construction in progress fees gets booked as “trade receivables.” (NPV of) Passenger Revenue Receivable BS (Trade Receivables) When the guaranteed passenger fees become earned during the course of BS Airport Operation Right * operations, these are credited from the balance sheet and the difference between discounted (NPV of) guaranteed passenger fees and the actual fees as they are 3. Operations During Year earned are booked as finance income. PL Aviation Income for the Current Year ** BS Cash ** Due to the application of IFRIC 12, guaranteed passenger fees stop being P&L items and get treated as Balance Sheet/Cash Flow items, while at the same time, 4. Year Close part of these fees gets shown as finance income. This unduely decreases aviation income and increases finance income and distorts our P&L. To adjust for the PL Aviation Income for the Current Year *** distortion we add back guaranteed passenger fees while reporting our adjusted Finance Income revenues. (Difference between discounted receivables and the actual PL receivables) On the other hand the capex incurred during the construction phase is BS Passenger Revenue Receivable**** immediately transferred to P&L with an offsetting construction income assigned PL Amortisation of Airport Operation Right to it. This income may or may not carry a mark-up on it. Since this method of BS Accumulated Amortisation of Airport Operation Right booking also distorts both the P&L and the Balance Sheet we adjust our financials * AOR = Construction in progress- (NPV of ) Passenger Revenue Receivable to disregard the effects of both “construction expense” and “construction ** TR-GAAP income.” ***IFRS (IFRIC 12 application) ****Discounted guaranteed passenger revenues for that period
Guaranteed Pax Structure 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
International Departing Pax (m) 0.8 0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.2 1.2 1.3 1.3 1.4 1.5 1.6 0.6 Guaranteed Pax Income (€m) 11.8 12.4 13.0 13.7 14.4 15.1 15.8 16.6 17.5 18.3 19.2 20.2 21.2 22.3 23.4 9.6
Ankara Ankara Domestic Departing Pax (m) 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.2 1.2 0.5
Guaranteed Pax Income (€m) 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.7 2.8 2.9 3.1 3.2 3.4 3.6 3.7 1.5
International Departing Pax (m) 1.1 1.1 1.1 1.2 1.2 1.2 1.3 İzmir İzmir Guaranteed Pax Income (€m) 15.9 16.4 16.9 17.4 17.9 18.4 19.0 25 Total Guaranteed Pax Income (€m) 29.6 30.8 32.0 33.3 34.6 35.9 37.4 19.3 20.2 21.3 22.3 23.4 24.6 25.8 27.1 11.1 Service Companies KPIs
ATU Revenues (€m) Duty Free Spend per Pax (€)
Q1 Q2 Q3 Q4 Istanbul TAV
17,1 16,6 16,5 17,1 16,0 15,7 16,3 16,0 69 14,6 68
56 74 47 72 37 57 47 73
41 65
53 38 42
61 56
15,8 14,7 14,5 14,9 15,1 14,8 15,9 14,1 29 33 41 50 14,8 2009 2010 2011 2012 2013 2014 2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14 # of Flights Served (‘000) TAV F&B Spend per Pax (€)
10% 93 2,1 1Q13 84 2,0 1Q14 1,8 14% 1,6 59 1,3 1,3 1,3 1,3 51 1,2
10%
-11% 21 23 12 11
HAVASHAVAŞ TGS HAVASHVŞ EUROPE E HAVAŞHAVAS+TGS+ + TGS + HVŞ E 2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14 HAVAS EUROPE 26 Source: DHMI, TAV Timeline
2012 2013 2014 Q1 Q1 Q1
• Izmir domestic operations were taken over by TAV Ege on •Compensation letter received from DHMI regarding our •Milas-Bodrum Airport tender was won. January 2012. Company’s concession rights in Istanbul Ataturk Airport •Dividend policy of 50% payout implemented. • HAVAS had to suspend bus services in Istanbul temporarily as •Tbilisi extension project cancelled •Cash Dividend of €65m paid. of 14.01.2012 due to the decision of Istanbul Metropolitan •Izmir Domestic Terminal opened. Municipality.
Q2 Q2
• Transfer of 38% of TAV Airports shares to ADP has taken •The New Istanbul Airport tender was held. TAV Airports did place in May 2012 not win the tender. • First time cash dividend of €39m •Cash dividend of €59m paid. • Operations of Medinah Airport were taken over in June 2012 •Havas Europe Helsinki & Stockholm stations closed. • The insurance claim on the trigen facility has finalized and •THY aircrafts are served by TGS now instead of Havas at resulted in lower than inially expected, hence insurance Bodrum and Dalaman. Havas personnel were transferred to income accrual amounting €2.7m was reversed. TGS. •TGS added SunExpress to clients served. •Gezi events took place. Q3 Q3
•An MoU is signed to extend the Tbilisi concession for 10 years •TAV Airports’ consortium prequalified for LaGuardia Airport 9 months in exchange for new runway to cost $65m (MoU tender. cancelled in Q1 2013. No Capex) •Macedonia concession rent dropped to 4% from 15% •TAV Airports agreed to acquire the remaining 35% of Havas retrospectively. shares for €80m. • Havas turnaround project launched. •Holding made one off Medinah acquisition expenses (€0.2m in Q1, €0.5m in Q2, €2.0m in Q3)
Q4 Q4
•Transfer of acquired Havas shares took place on October 3, •Zagreb airport taken over in December 2013 by consortium. 2012. • At the end of 2013, corporate taxes in Tunisia have been •TAV Airports signed a LOI for 15% participation in the Zagreb decreased from 30% to 25%. Airport consortium composed of ADPM and BBI. •Holding made one off Medinah acquisition expenses (€0.9m in Q4, €3.7m for FY) •The Tunisian concession payable due from 2010 was decreased €3.9 million •TIBAHD paid €12.6m to TAV Airports Holding (€8.4m after eliminations) as success fee
27 2014 Guidance
Growth in Istanbul Ataturk Airport Passengers 8 to 10 percent
Growth in Total TAV Airports Passengers 10 to 12 percent
Growth in Revenues 9 to 11 percent
Growth in EBITDA 12 to 14 percent
Consolidated CAPEX €100m to €120m
Growth in net profit Significant improvement expected
Notes: All financial targets are subject to the passenger targets being met. All financial targets have been adjusted to reverse the effects of IFRIC 12 and are compliant with IFRS 11. 28
Tax Regimes
Corporate income tax rate of 20%
Advance tax returns are filed on a quarterly basis. Turkey Losses can be carried forward for offsetting against future taxable income for up to 5 years
Losses cannot be carried back
Corporate income tax rate of 15% Georgia
Corporate income tax rate of 25% Tunisia TAV Tunisia is exempt from corporate tax for a period of 5 years starting from the concession agreement date
Corporate income tax of 10% Macedonia
Corporate income tax rate of 15% Latvia
Corporate income tax rate of 20% for non-residents Saudi Arabia
Corporate income tax rate of 20% Croatia 29 Corporate Governance Rating
The New Corporate Governance Communiqué (II-17.1) came into effect on January 3rd, 2014 after being launched by the Capital Markets Board of Turkey (CMB). The Corporate Governance Principles are updated with this new Communiqué as a part of an ongoing process by the introduction of the CMB Law no.6362.
Within the scope of the developments stated above, the weighting of main topics of Corporate Governance Principles compliance methodology has been updated to capture the rating of minimum requirements and represent the amendments in corporate governance principles.
In this context, our Corporate Governance rating grade which was announced as 93.97 (9.39 over 10) on 23rd August 2013 has been revised as 91.76 (9.17 over 10).
Sub-categories Weight Grade Shareholders 0,25 91,36 Public Disclosure and Transparency 0,25 96,51 Stakeholders 0,15 90,07 Board of Directors 0,35 89,38 Total 1.00 91.76
Second highest corporate governance rating in 2013 !!
30 Share Performance (May 02, 2014)
TAVHL ($) Relative to BIST-100
8,50 2,70
8,00 2,50
7,50 2,30 Share Price Performance 7,00 2,10 6,50 1,90 1M 3M YTD 6,00 1,70 TL 3% 3% 13% 5,50 USD 5% 11% 14% 1,50 5,00 Relative to ISE -100 -2% -15% 2% 1,30 4,50
4,00 1,10
3,50 0,90
02.01.2013 23.01.2013 13.02.2013 06.03.2013 27.03.2013 17.04.2013 08.05.2013 29.05.2013 19.06.2013 10.07.2013 31.07.2013 21.08.2013 11.09.2013 02.10.2013 23.10.2013 13.11.2013 04.12.2013 25.12.2013 15.01.2014 05.02.2014 26.02.2014 19.03.2014 09.04.2014 30.04.2014
Closing Price (TRL) Market Cap Avg. Daily Volume** Free Float* Effective Free Float* 16,65 USD 2,7b USD 10m 44% 40%
*Source: Central Registry Agency (MKK) ** 2014 to date
31 Growth of the Turkish Aviation Market and TAV Airports
Turkish Aviation Market (mPax) Number of Aircraft in Turkey
Domestic Int'l Total CAGR (2002-12) 150 13% 370 349 CAGR (2002-13) 332 130 14% 299 118 270 259 250 86 103 240 79 202 70 65 162 57 45 110 34 34
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
TAV Airports Passenger Traffic (mPax)
Deregulation of the domestic market in 2003 84 CAGR (2002-13) 72 2nd largest country in Europe in terms of population: 23% 75m (1)
53 48 In 2013, foreign visitors reached 35m (2) 41 42 30 Limited alternative transport infrastructure 23 17 Aircraft number in Turkey expected to reach 10 9 9 750 in 2023 (3)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Ministry of Transport 32 Exceptional Growth Sustained
Revenues (€m) EBITDA (€m)
CAGR (2006-13) CAGR (2006-13) 1205 397 17% 45% 1099 339
881 257 785 212 627 640 167 508 141 402 77 29
2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013
Passenger (m) Average Number of Employees
CAGR (2006-13) 84 CAGR (2006-13) 20% 17% 72 24.014 22.227 19.838 53 17.535 48 41 42 11.289 12.194 30 9.473 23 8.146
2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013
IFRS 11 and IFRIC 12 adjusted 33 Concession Overview
Lease/ 2013 fee/pax fee/pax Volume Airport Type/Expire TAV Stake Scope Concession Net Debt (1) Pax(mppa) Int'l Dom. Guarantee Fee Lease US$15 $140m/yr + Istanbul Ataturk 100% Terminal 51,3 €3 No €176m (Jan. 2021) €2.5 (Transfer) VAT BOT 0.6m Dom. , Ankara Esenboga 100% Terminal 10,9 €15 €3 0.75m Int'l for - €83m (May 2023) 2007+%5 p.a BOT+Lease €29m starting 1.0m Int’l for Izmir A.Menderes 100% Terminal 10,2 €15 €3 from 2013 (6) €191m 2006 + %3 p.a. (Dec. 2032) Lease Gazipasa 100% Airport 0,4 €5 TL2 No $50,000+VAT(5) €18m (May 2034) BOT Tbilisi 76% Airport 1.4 US$22 US$6 No - €(2)m (Feb. 2027) BOT Batumi 76% Airport 0.2 US$12 US$7 No - €(1)m (Aug. 2027) 11-26% of BOT+Concession Monastir&Enfidha 67% Airport 3.4 €9 €1 No revenues from €349m (May 2047) 2010 to 2047 BOT+Concession €17.5 in 15% of the Skopje & Ohrid 100% Airport 1,1 Skopje, €16.2 - No gross annual €57m (March 2030) in Ohrid turnover (2) BTO+Concession Medinah 33% Airport 4.7 SAR 80 (3) - No 54.5%(4) - (2037) BOT+Concession €15 (7) €2.0 - €11.5m fixed (7) 0.5% (2016) - 61% Zagreb 15% Airport 2.3 (7) €7 No - (April 2042) €4 (Transfer) (2042) variable
1) As of 31 March 2014 2) The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers 3) SAR 80 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years 4) The concession charge will be reduced to 27.3 % for the first two years that follow the completion of the construction. 5) TAV Gazipaşa shall make a yearly rent payent of US$ 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. 6) Cash Basis 7)€10, €4, €4 before April 2014 respectively for international, domestic and transfer pax 34 Macro Outlook
Country Subject Descriptor Units Scale 2012 2013 2014 2015 2016 2017 2018 2019
Gross domestic Croatia product, current U.S. dollars Billions 56.162 58.058 59.766 61.690 64.528 68.137 72.317 76.656 prices Gross domestic product per capita, U.S. dollars Units 13,118.942 13,561.708 13,960.688 14,410.105 15,072.998 15,916.179 16,892.604 17,906.034 current prices
Population Persons Millions 4.281 4.281 4.281 4.281 4.281 4.281 4.281 4.281
Gross domestic Georgia product, current U.S. dollars Billions 15.847 16.162 16.286 17.599 19.026 20.492 22.079 23.790 prices Gross domestic product per capita, U.S. dollars Units 3,523.407 3,604.511 3,643.361 3,949.128 4,282.576 4,626.749 5,000.508 5,426.879 current prices
Population Persons Millions 4.498 4.484 4.470 4.456 4.443 4.429 4.415 4.384
Gross domestic Latvia product, current U.S. dollars Billions 28.379 30.953 33.731 36.715 39.878 43.277 46.763 50.324 prices Gross domestic product per capita, U.S. dollars Units 13,899.260 15,205.424 16,620.070 18,145.004 19,767.314 21,516.790 23,320.049 25,171.202 current prices
Population Persons Millions 2.042 2.036 2.030 2.023 2.017 2.011 2.005 1.999
Gross domestic FYR Macedonia product, current U.S. dollars Billions 9.585 10.238 11.070 11.867 12.808 13.888 14.948 16.158 prices Gross domestic product per capita, U.S. dollars Units 4,638.287 4,943.671 5,333.130 5,704.406 6,143.359 6,646.371 7,138.018 7,698.570 current prices Population Persons Millions 2.066 2.071 2.076 2.080 2.085 2.090 2.094 2.099 Gross domestic Saudi Arabia product, current U.S. dollars Billions 733.956 745.273 772.610 790.905 815.948 849.710 888.890 932.212 prices Gross domestic product per capita, U.S. dollars Units 25,139.004 24,847.162 25,228.782 25,319.799 25,609.311 26,146.065 26,815.324 27,570.838 current prices Population Persons Millions 29.196 29.994 30.624 31.237 31.861 32.499 33.149 33.812 Gross domestic Tunisia product, current U.S. dollars Billions 45.425 47.439 46.736 48.058 49.523 51.381 53.240 55.305 prices Gross domestic product per capita, U.S. dollars Units 4,214.836 4,345.173 4,225.873 4,289.614 4,363.625 4,469.302 4,571.530 4,687.963 current prices Population Persons Millions 10.778 10.918 11.060 11.203 11.349 11.496 11.646 11.797 Gross domestic Turkey product, current U.S. dollars Billions 788.042 827.209 767.066 820.872 870.888 927.539 987.875 1,052.136 prices Gross domestic product per capita, U.S. dollars Units 10,523.360 10,815.457 9,920.152 10,503.528 11,028.506 11,628.249 12,264.119 12,938.055 current prices
Population Persons Millions 74.885 76.484 77.324 78.152 78.967 79.766 80.550 81.321 35 IMF, World Economic Outlook Database, April 2014 ADP – TAV Airports: A Global Footprint
13 Regional airports France Schiphol Group (8%) Liège (25.6%) Croatia (TAV 15% ADPM 21%) Mexico North Central (25.5%)¹ Paris-CDG: 62mn pax 52,6mn pax 0.6mn tons of freight Zagreb Airport; 2.3 mn pax 13,3mn pax Paris-Orly: 27mn pax Industrial cooperation Strategic partner Concession operator Operator & Strategic partner Owner and operator
Georgia (76%) Tbilisi & Batumi: 1.6mn pax Concession operator
Macedonia (100%) Skopje & Ohrid: 1.1mn pax Concession operator
Turkey Istanbul Ataturk: 51,3mn pax Ankara: 10,9mn pax Izmir: 10,2mn pax Gazipasa: 0,3mn Concession operator
Amman – Jordan (9.5%) Conakry Airport (29%) 6,5mn pax 0.3mn pax Management contract Operator Strategic partner
Cambodian Airports Phnom Penh & Siam Reap: 5,1mn pax Assistance in management
TAV Airports Algier Airport Tunisia (67%) Jeddah (Hajj Terminal) – Mauritius (10%) Medinah (Saudi Arabia) (33%) 5,9mn pax Enfidha & Monastir Saudi Arabia 2,8mn pax 4,7mn pax ADP Operator 3.4mn pax 6,8mn pax Operator Concession operator Concession operator Management contract Strategic partner
Source: ADP, TAV Airports Notes: Mexico: ADP holds a 25.5% stake in the Mexican company Servicios de Tecnología Aeroportuaria (SETA), which itself has a 16.7% stake in holding company Grupo Aeroportuario del Centro Norte (GACN), which controls 13 airports in the north and centre of Mexico, including Monterrey International Airport Passenger numbers are for FY 2013. 36 TAV Corporate and Shareholder Structure
TAV Airports Holding Co. Shareholder Structure
Airport Companies Service Companies (2) 8.1% (3) 8.1% Atatürk (100%) ATÜ (50%) (4) (1) 2.0% 38.0% (5) 3.5% Esenboğa (100%) BTA (67%)
Adnan Menderes Havaş (100%) (100%) (6) 40.3%
Gazipaşa (100%) TGS (50%)
Shareholders Medinah (33%) Havaş Europe (67%)
1. Aéroports De Paris* Tbilisi & Batumi Internationally acclaimed airport operating company with global (76%) O&M (100%) operations 2. Tepe Insaat Sanayi A.Ş. Turkish integrated conglomerate focused on infrastructure and Monastir & Enfidha (67%) construction IT (100%) 3. Akfen Holding A.Ş. Holding company operating in the infrastructure, construction, seaport, Skopje & Ohrid REIT and energy sector (100%) 4. Sera Yapi Endustrisi A.Ş. Focused on construction in Turkey & MENA region Security (100%) 5. Other Non-floating
Latvia (100%) 6. Other Free Float
Zagreb (15%) 37 *Through Tank ÖWA Alpha GMBH Contact IR
IR Team About TAV Airports
Nursel İLGEN, CFA Director, Head of Investor Relations TAV Airports, the leading airport operator in Turkey, operates 13 airports: [email protected] Turkey Tel :+90 212 463 3000 / 2122 Istanbul Ataturk Fax : +90 212 465 3100 Ankara Esenboga Izmir Adnan Menderes Antalya Gazipasa Georgia Tbilisi and Batumi Tunisia Ali Özgü CANERİ Monastir and Enfidha Investor Relations Manager Macedonia [email protected] Skopje and Ohrid Tel :+90 212 463 3000 / 2124 Saudi Arabia Fax : +90 212 465 3100 Medinah Latvia Riga (only commercial areas) Croatia Zagreb
Besim MERİÇ Investor Relations Manager TAV Airports provides service in all areas of airport operations such as duty [email protected] free, food and beverage, ground handling, IT, security and operations Tel :+90 212 463 3000 / 2123 services. The Company and its subsidiaries, provided service to Fax : +90 212 465 3100 approximately 652 thousand flights and 84 million passengers in 2013. The Company’s shares are listed in Borsa Istanbul since February 23, 2007, under the ticker code “TAVHL”
IR Website http://ir.tav.aero e-mail [email protected] Address TAV Airports Holding Co. Istanbul Ataturk Airport International Terminal Phone +90-212-463 3000 (x2122 – 2123 – 2124 - 2125) (Besides Gate A and VIP) Twitter twitter.com/irTAV 34149 Yesilkoy, Istanbul Facebook facebook.com/irTAV 38 Disclaimer
This presentation does not constitute an offer to sell or the solicitation of an offer to buy or acquire any shares of TAV Havalimanlari Holding A.Ş. (the "Company") in any jurisdiction or an inducement to enter into investment activity. No information set out in this document or referred to in such other written or oral information will form the basis of any contract. The information used in preparing these materials was obtained from or through the Company or the Company’s representatives or from public sources. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its accuracy, completeness or fairness. The information in this presentation is subject to verification, completion and change. While the information herein has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by the Company or any of its group undertakings, employees or agents as to or in relation to the accuracy, completeness or fairness of the information contained in this presentation or any other written or oral information made available to any interested party or its advisers and any such liability is expressly disclaimed. This disclaimer will not exclude any liability for, or remedy in respect of fraudulent misrepresentation by the Company. This presentation contains forward-looking statements. These statements, which may contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning, reflect the Company’s beliefs, opinions and expectations and, particularly where such statements relate to possible or assumed future financial or other performance of the Company, are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. These forward-looking statements speak only as at the date of this presentation. The Company expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Past performance cannot be relied upon as a guide to future performance. As a result, you are cautioned not to place reliance on such forward-looking statements.
Information in this presentation was prepared as of May 9, 2014
39