TAV Airports Holding
Management Presentation
April 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-March FY Passengers (1) 2013 2014 Chg % 2012 2013 Chg % Review of 2013: Ataturk Airport 11.181.683 12.422.066 11% 45,091,962 51,320,875 14% International 7.386.479 8.236.545 12% 29,812,307 34,096,770 14% The number of passengers using airports operated by TAV increased 17% (like-for- Domestic 3.795.204 4.185.521 10% 15,279,655 17,224,105 13% like growth of 13%) to 84 million in 2013, on the back of organic and inorganic Esenboga Airport 2.402.466 2.714.497 13% 9,273,108 10,928,403 18% growth. International 337.203 322.827 -4% 1,593,737 1,573,943 -1% Domestic 2.065.263 2.391.670 16% 7,679,371 9,354,460 22% Izmir Airport 2.034.266 2.245.116 10% 9,355,902 10,208,627 9% The number of international passengers served at Istanbul Ataturk continued to International 258.623 299.082 16% 2,410,858 2,467,436 2% grow in double digits, increasing by 14%, with 28% surge in international to Domestic 1.775.643 1.946.034 10% 6,945,044 7,741,191 11% international transfer passengers. Gazipaşa Airport 16.879 51.187 n.m. 79,740 363,024 n.m. International 707 10.751 n.m. 75,886 242,949 n.m. Domestic 16.172 40.436 n.m. 3,854 120,075 n.m. Istanbul growth at double-digit spearheaded by THY’s aggressive fleet expansion Medinah 1.204.080 1.673.258 39% 4,588,158 4,669,181 2% plan. Tunisia (Monastir&Enfidha) 257.962 267.130 4% 3,321,244 3,437,849 4% Georgia (Tbilisi&Batumi) 282.703 309.766 10% 1,387,946 1,642,597 18% Macedonia (Skopje&Ohrid) 192.376 207.963 8% 913,567 1,067,467 17% Ankara’s strong growth in domestic driven by Sun Express. Zagreb Airport 441.510 429.504 -3% 2,342,309 2,300,231 -2% TAV TOTAL (3) 17.572.415 20.320.487 16% 71,654,344 83,638,023 17%
International 9.484.840 11.138.001 17% 40,871,220 47,429,862 16% Strong domestic growth in Izmir driven by SunExpress and Pegasus. Domestic 8.087.575 9.182.486 14% 30,783,124 36,208,161 18%
January-March FY Air Traffic Movements (2) 2013 2014 Chg % 2012 2013 Chg % SAS, SunExpress and Pegasus increased regular flights to Gazipaşa dramatically. Ataturk Airport 86.200 96.154 12% 346,060 387,965 12% International 58.322 65.908 13% 231,293 260,686 13% Domestic 27.878 30.246 8% 114,767 127,279 11% Medinah passenger was flat due to visa restrictions arising from construction in the
Esenboga Airport 19.295 20.600 7% 74,860 85,241 14% holy pilgrimage area. International 2.929 2.661 -9% 13,266 13,133 -1% Domestic 16.366 17.939 10% 61,594 72,108 17% Izmir Airport 14.220 15.383 8% 66,417 70,057 5% International 1.779 2.142 20% 17,078 17,215 1% Tunisian passengers was relatively flat due to the political situation. Domestic 12.441 13.241 6% 49,339 52,842 7% Gazipaşa Airport 112 412 n.m. 578 2,577 n.m. International 8 87 n.m. 532 1,805 n.m. Georgian airports are attracting both Turkish and Russian tourists. Domestic 104 325 n.m. 46 772 n.m. Medinah 9.461 12.871 36% 36,282 40,000 10% Tunisia (Monastir&Enfidha) 3.148 2.885 -8% 27,350 30,077 10% Georgia (Tbilisi&Batumi) 4.652 4.906 5% 23,598 23,512 0% Macedonia is being driven mainy by WizzAir. Macedonia (Skopje&Ohrid) 2.555 2.593 1% 11,285 12,380 10% Zagreb Airport 8.592 8.212 -4% 39,038 38,894 0% Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAH and MZLNote: DHMI TAV TOTAL (3) 139.643 164.016 17% 569,790 651,809 14% figures for 2014 are tentative. (1) Both departing and arriving passengers, including transfer pax. International 77.645 94.234 21% 330,935 376,719 14% (2) Commercial flights only 238,855 275,090 15% Domestic 61.998 69.782 13% (3) 2013 TAV totals do not include Zagreb Airport. 3
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) 4 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
5 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.
6 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) 7 *** 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:2015 3,6 m Intl:0,6 m 1,9 m Intl:1,9 m Dom:3,8 m Intl:0,2 m Dom:1,7 m 0,36 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 . 8 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.
9 Financial Overview
IFRIC 12 IFRS 11 and IFRIC 12 Adjusted Financials Adjusted Financials
(in m€, unless stated otherwise) 2012(2) 2013 Chg % 2012(2) 2013 Chg % Revenues 847 904 7% 1,099 1,205 10% EBITDA 328 381 16% 339 397 17% EBITDA margin (%) 38.7% 42.1% 3.4 ppt 30.8% 32.9% 2.1 ppt EBITDAR 463 524 13% 483 555 15% EBITDAR margin (%) 54.7% 58.0% 3.3 ppt 44.0% 46.1% 2.1 ppt FX Gain (Loss) 1 (32) nm 2 (33) nm Deferred Tax Income (Expense) 5 (16) nm 4 (17) nm Net Profit 129 133 3% 129 133 3% Net Cash Provided from Operating Activities(3) 417 526 26% 417 526 26% Capex(3) (69) (234) 238% (69) (234) 238% Free Cash Flow(3) 347 293 (16%) 347 293 (16%) Shareholders’ Equity 505 594 18% 505 594 18% Net Debt 816 874 7% 882 1022 16% Average number of employees 13,091 13,598 4% 22,797 24,016 5% Number of passengers (m) 71.7 83.6 17% 71.7 83.6 17% - International 40.9 47.4 16% 40.9 47.4 16% - Domestic 30.8 36.2 18% 30.8 36.2 18% Duty free spend per pax (€) (1) 15.0 14.8 -2% 15.0 14.8 -2%
(¹) Transfer numbers are tentative and subject to change (²) Restated retrospectively due to IAS 19 (³) IFRS Source: TAV Airports Holding, DHMI, TAV Tunisie, TAV Macedonia, Georgian Aviation Authority, TIBAH
10 2013 Guidance Attained
Guidance Realization
Growth in Istanbul Ataturk Airport Passengers 14 to 16 percent 14 percent
Growth in Total TAV Airports Passengers 15 to 18 percent 17 percent
Growth in Revenues 10 to 12 percent 10 percent
Growth in EBITDA 17 to 19 percent 17 percent
Consolidated CAPEX €330m to €350m €354m
Notes: All financial targets have been adjusted to reverse the effects of IFRIC 12 and IFRS 11 in 2013 financials. All financial targets are subject to the passenger targets being met.
11 Comparison to 2012
Consolidated Revenue (€m) EBITDA (€m) Net Profit (€m)
16% 3% 7%
381 133 904 129 847 328
FY11 FY12 2012FY11 2013FY12 2012FY11 2013FY12 2012 2013
Consolidated Revenue (%) EBITDA (%) Opex (%) Duty-free Aviation Istanbul Other Airports BTA Personnel Concession rent Ground-handling F&B Other D&A HAVAŞ Other Services Other Services rendered 0% Catering Duty-free 10% 19% 4% 8% 25% 11% 20% 8% 25% 3% 3% 5% 11% 36% 8% 8% 54% 55% 16% 26% 18% 24% 16% 31% 31% 23%
2012 12 2013 * IFRIC 12 adjusted Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s
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% Gazipaşa 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% HAVAŞ 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
13 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.
14 CAPEX Development & Outlook
Quarterly Capex (€m)
Ege Other 66
52 51 42
. 87% of total Capex was incurred in Izmir Adnan Menderes Domestic Terminal Construction 10 11 7 4 .The bulk of the remainder of the capex was incurred at Istanbul and Havas
1Q13 2Q13 3Q13 4Q13
Total EPC* EPC Cumulative Cumulative (¹+²) 2012¹ 2013² Airport Scope (€m) (€m) (€m) (€m) (€m) % Completed
Izmir Re-construction of the domestic terminal 266 237 250 39 210 89 % Re-construction of the terminals and extension of the Medinah (33%) runway 248 137 153 52 101 58 %
15 *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) 2012 9M13 2013 Door to Door Maturity 7.6 Years Airports 569 624 652 Istanbul 45 68 (1) Average Maturity 5.1 Years Ankara 92 83 84 Izmir (including Ege) (1) 58 155 Average € Cost of Debt (Hedged*) 5.5 % Gazipasa 17 16 16 Tunisia 351 345 344 Net Debt/EBITDA 2.3x Georgia 8 (4) (2) Macedonia 58 57 55 Services 246 251 222 HAVAS 68 64 58 *91% of all loans have fixed rates. BTA (1) 0 2 Others 179 187 162 Total 816 874 874 Net Debt to Cash Flow (€m) Gross Debt Maturity Profile (€m)
-187 296 4 -58 3
816 874 417
281 217
161 159
NetDebt Changein Restricted Borrowings Repayment Other NetDebt Borrowings
112 Changein
2012 2013
Raised
Cash
Cash
New of 2014 2015 2016 2017 2018 2019+
16 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). 17 FX Exposure
FX Rates
Equity Profit or loss Average Rate 31 Dec 31 Dec Strengthening Weakening Strengthening Weakening 2012 2013 2012 2013 (€’000) of EUR of EUR of EUR of EUR 31 December 2013 EUR/TRL 2.30 2.53 2.35 2.94 USD (16,039) 15,607 (14,012) 14,012 USD/TRL 1.79 1.90 1.78 2.13 TRL - - (10,027) 10,027 Other - - (1,028) 1,028 EUR/USD 1.29 1.33 1.32 1.38 Total (16,039) 15,607 (25,067) 25,067 EUR/GEL 2.12 2.21 2.18 2.39 EUR/MKD 61.35 61.73 61.51 61.50 31 December 2012 USD (28,469) 18,012 (12,534) 12,534 EUR/TND 2.01 2.16 2.05 2.27 TRL - - (8,956) 8,956 EUR/SEK 8.71 8.65 8.61 8.94 Other - - (1,181) 1,181 EUR/SAR 4.82 4.99 4.95 5.16 Total (28,469) 18,012 (22,671) 22,671
Hedging Sensitivity Analysis
Subsidiaries, TAV Istanbul, TAV Esenboğa, HAVAŞ, TAV
Macedonia, TAV Tunisia and TAV Ege enter into swap The Group’s principal currency rate risk relates to changes in the value of the Euro relative to transactions in order to diminish exposure to foreign currency TRL and the USD. The Group manages its exposure to foreign currency risk by entering into mismatch relating to DHMI installments and interest rate risk derivative contracts and, where possible, seeks to incur expenses with respect to each to manage exposure to the floating interest rates relating to contract in the currency in which the contract is denominated and attempt to maintain its loans used. cash and cash equivalents in currencies consistent with its obligations.
100%, 100%, 50%, 80%, 85% and 100% of floating bank loans The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate for TAV Istanbul, TAV Esenboğa, HAVAŞ, TAV Macedonia, TAV corporate-level currency exposure. The aggregate foreign exchange exposure is composed of Tunisia and TAV Ege respectively are fixed with interest rate all assets and liabilities denominated in foreign currencies, both short-term and long-term purchase contracts. The analysis excludes net foreign currency investments. swaps as explained in Note 34.
A 10 percent strengthening / (weakening) of EUR against the following currencies at 31 Changes in the fair value of the derivative hedging instrument December 2013 and 31 December 2012 would have increased / (decreased) equity and profit designated as a cash flow hedge are recognized directly in or loss by the amounts shown to the left. This analysis assumes that all other variables, in equity to the extent that the hedge is highly effective. To the particular interest rates, remain constant. extent that the hedge is ineffective, changes in fair value of the ineffective are recognized in profit or loss. 18 FX Gain / Loss Analysis
TAV has EUR140m equivalent USD financial assets mainly related with TAV Istanbul’s rent payment to DHMI and EUR100m equivalent TRL financial assets as at 31 December 2013 (Note 26 in IFRS Report, derivatives are not taken into consideration, since they affect other comprehensive income, not P&L). Strengthening of EUR against USD and TRL will impair these financial assets in IFRS financials and increase FX losses.
When we consider that TAV had a similar foreign currency position throughout 2013 and calculate the FX loss by using these USD and TRL financial assets (see below), a 4.3% strengthening of EUR against USD will have an FX loss effect amounting to EUR6m (calculated as 140m x - 4.3% = - 6m) on the USD financial assets. Likewise, a 24.9% strengthening of EUR against TRL will have an FX loss effect amounting to EUR25m (calculated as 100m x – 24.9% = - 25m) on TRL financial assets.
The total calculated effect of these FX rate changes are EUR31m loss. We almost reach the actual exchange loss for 2013 only by using these two currencies, which are actually the only major currencies affecting TAV’s FX gain/losses.
2013 (€ ‘000) USD TRL TOTAL Net Exposure 129,695 100,272 Less: Derivatives (10,424) - Net Exposure affecting PL 140,119 100,272
Strengthening of EUR against Foreign Currencies 4.3% 24.9% Calculated FX Loss (6,025) (24,967) (30,992) Effect of other currencies (1,243) Actual FX Loss (32,235)
19 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. 20
Income Statement
(€m) 2012* 2013 Construction revenue 39.1 210.4 Total operating income 811.9 867.7 Aviation income 230.8 247.6 Ground handling income 138.0 146.5 Commission from sales of duty free goods 208.7 227.5 Catering services income 67.5 75.5 Other operating income 166.8 170.5 Construction expenditure (39.1) (210.4) Operating expenses (611.4) (625.3) Cost of catering inventory sold (24.5) (27.0) Cost of services rendered (53.5) (51.1) Personnel expenses (218.1) (223.2) Concession rent expenses (135.6) (143.4) Depreciation and amortization expense (66.4) (68.7) Other operating expenses (114.3) (111.9) Equity pick-up 26.9 33.6 Operating profit 226.6 276.0 Finance income 31.7 32.2 Finance expenses (94.3) (120.2) Profit before tax 164.0 188.0 Income tax expense (31.7) (55.3) Profit for the period Attributable to: Owners of the Company 129.2 132.9 Non-controlling interest 2.9 (0.2) Profit for the period 132.2 132.7
* Restated
21 Balance Sheet
€m 2012* 2013 ∆% €m 2012* 2013 ∆% ASSETS EQUITY Property and equipment 158 157 -1% Share capital 162 162 0% Intangible assets 23 20 -14% Share premium 220 220 0% Airport operation rights 760 930 22% Legal reserves 55 78 43% Other investments 0 0 nm Other reserves (18) (18) 0% Goodwill 136 136 0% Revaluation surplus 1 1 -26% Prepaid concession expenses 57 56 -3% Purchase of shares of entities under Trade receivables 76 58 -23% common control 40 40 0% Other non-current assets 0 2 281% Cash flow hedge reserve (96) (69) -28% Deferred tax assets 100 72 -27% Translation reserves (3) (16) 391% Equity Accounted Investees 80 92 15% Retained earnings 143 194 36% Total non-current assets 1,394 1,523 9% Total equity attributable to equity holders of the Company 505 594 18% Non-controlling interest 32 32 0% Inventories 7 8 8% Total Equity 538 626 16% Prepaid concession expenses 138 138 0% LIABILITIES Trade receivables 81 74 -9% Loans and borrowings 1,025 1,068 4% Due from related parties 52 15 -72% Reserve for employee severance indemnity 14 12 -18% Derivative financial instruments 0 1 523% Due to related parties 13 10 -20% Other receivables and current assets 21 24 15% Derivative financial instruments 166 123 -26% Cash and cash equivalents 40 98 148% Deferred income 30 24 -20% Restricted bank balances 385 382 -1% Other payables 11 11 0% Total current assets 723 739 2% Deferred tax liabilities 3 4 38%
Trade payables (0) 0 nm TOTAL ASSETS 2,118 2,262 7% Total non-current liabilities 1,262 1,251 1%
* Restated Bank overdraft 1 2 12% Loans and borrowings 213 283 33% Trade payables 37 41 11% Due to related parties 13 9 -28% Current tax liabilities 8 10 33% Other payables 27 21 -24% Provisions 7 6 -10% Deferred income 11 11 -4% Total current liabilities 318 384 20% TOTAL LIABILITIES 1,580 1,635 4%
TOTAL EQUITY AND LIABILITIES 2,118 2,262 7%
* Restated 22 Cash Flow Statement
€m 2012* 2013 ∆% €m 2012* 2013 ∆% CASH FLOWS FROM OPERATING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Profit for the period 132 133 0% Interest received 14 11 -21% Adjustments for: Proceeds from sale of property, equipment and Amortisation of airport operation right 40 40 -1% intangible assets 2 2 -3% Depreciation of property and equipment 22 24 11% Acquisition of property and equipment -29 -31 8% Amortisation of intangible assets 4 4 3% Acquisition of non-controlling interest -80 0 nm Concession and rent expenses 136 143 6% Additions to airport operation right -39 -202 417% Provision for employee severance indemnity 3 5 106% Acquisition of intangible assets -2 -1 -21% Provision for doubtful receivables 1 1 -15% Net cash (used in) / provided from investing activities -133 -220 66% Discount on receivables and payables, net 0 0 Nm CASH FLOWS FROM FINANCING ACTIVITIES Gain on sale of property and equipment 0 -1 98% Proceeds from borrowings 195 296 52% Provision set for unused vacation 2 0 -82% Repayment of borrowings -163 -187 15% Interest income -15 -15 nm Change in restricted bank balances -293 -295 1% Interest expense on financial liabilities 85 81 nm Non-controlling interest change -1 -4 187% Reversal of insurance income 3 0 Nm Dividends paid -39 -59 49% Tax expense 32 55 75% Change in finance lease liabilities -1 1 Nm Unwinding of discount on concession receivable -15 -17 16% Net cash used in financing activities -302 -248 -18% Share of profit of equity-accounted investees, net of nm tax -27 -34 25% NET INCREASE IN CASH AND CASH EQUIVALENTS -18 58 nm Unrealised foreign exchange differences on statement CASH AND CASH EQUIVALENTS AT 1 JANUARY 56 38 -32% of financial position items 4 -5 nm Cash flows from operating activities 407 416 2% CASH AND CASH EQUIVALENTS AT 31 DECEMBER 38 96 153% Change in current trade receivables -13 8 Nm Change in non-current trade receivables 34 35 4% Change in inventories -1 -1 Nm Change in due from related parties -41 38 Nm Change in restricted bank balances 249 287 15% Change in other receivables and current assets 32 11 -65% Change in trade payables 5 4 -19% Change in due to related parties -7 -6 -7% Change in other payables and provisions -3 -19 437% Change in other long term assets 0 -1 Nm Additions to prepaid concession and rent expenses -138 -136 -1% Cash provided from operations 523 637 22% Income taxes paid -39 -37 -5% Interest paid -84 -85 1% Retirement benefits paid -2 -5 102% Dividends from equity-accounted investees 19 17 -12% Net cash provided from operating activities 417 526 26%
* Restated 23 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 24 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 Adjusted Financials - IFRS 11
Effects of IFRS 11 Financials Adjusted for IFRS 11
According to the IFRS 11 standard, joint ventures cannot be However, to enable the capital markets participants a consolidated “proportionately” starting with 2013 first set smooth transition process into the new standard, TAV of financials. These types of entities have to be consolidated Airports will provide a summary of consolidated P&L items using the “equity pick-up” method. adjusted to reverse the effects of IFRS 11 for 2013.
In the case of TAV Airports, this standard implies that Shares of profit of equity accounted investees are previously “proportionately” consolidated entities such as classified in the consolidated operating profit of the ATÜ, TGS, TIBAH Development (Medinah) and BTA Marine Holding company, but these sums are not included in the (IDO) have to be consolidated using the “equity pick- up” consolidated revenues. method.
In the IFRS report, these entities have been consolidated in accordance with the IFRS 11 standard, recording the “net income/(loss)” contributions of these entities as a source of operating profit.
Please be reminded that we will discontinue reporting consolidated financials adjusted for IFRS 11 with 1Q14 financials.
25 Reconciliation of 2013 Adjusted Financials* to IFRS
Revenue (€m) EBITDA (€m)
11 0 IFRIC 12 28 IFRIC -116 4 1 Adjustments 100 12 12 -34 Adj. 33 IFRS 11 Adjustments -1 IFRS 11 Adjustments 277 36 -210 36
1.078 345
1.205 397
IFRS Guaranteed ATU(50%) Havas Medinah BTA Others Elimination IFRS 11 &
BTA IFRS Construction Guaranteed ATU(50%) Havas Medinah Others Elimination IFRIC 12 adj.
IFRIC12
IFRS 11 &
IFRIC12
IFRIC12
IFRIC12
Income
adj.
Pax Pax
Net Debt (€m) Share of Profit of Equity-accounted investees (€m)
ATU Havas TIBAH BTA Zagreb 2 5 0 -0,2 146 0,6
3,7 874 IFRS 11 Adjustments 1.022 7,3
22,2
(50%) IFRS Medinah Havas BTA IFRS11
ATU adj.
26 *IFRS 11 and IFRIC 12 adjusted Selected Financials by Assets (IFRS 11 and IFRIC 12 adjusted) and employee #’s
EBITDA Revenue (€m) 2012 2013 Chg.(%) (2013, €m) Revenues EBITDA Margin (%) Net Debt Airports 631.3 686.4 9% Airports 686.4 307.8 45% 798 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 Medinah 16.5 28.4 72% Medinah (33%) 28.4 4.4 15% 146 Services 673.5 733.5 9% Services 733.5 89.9 12% 224 ATU (50%) 255.1 277.1 9% ATU (50%) 277.1 32.9 12% 5 Havas (incl. TGS) 210.9 240.9 14% Havas (incl. TGS) 240.9 40.9 17% 55 BTA (incl. IDO) 115.4 127.2 10% BTA (incl. IDO) 127.2 12.5 10% 2 Others 92.2 88.4 -4% Others 88.4 3.5 4% 162 Total 1,304.8 1,419.8 9% Total 1,419.8 397.7 28% 1,022 Elimination -205.4 -215.2 5% Elimination -215.2 -1.1 0 Consolidated 1,099.4 1,204.7 10% Consolidated 1,204.7 396.6 33% 1,022 EBITDA (€m) 2012 2013 Chg.(%) Number of Employees (eop) 2012 2013 Istanbul 2,640 2,724 Airports 270.5 307.8 14% 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% Gazipaşa 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% HAVAŞ 11,082 11,670 Macedonia 2.2 5.7 154% ATU 1,551 1,376 Medinah 3.1 4.4 42% BTA 2,642 2,894 Holding 102 99 Services 73.6 89.9 22% O&M 296 307 ATU (50%) 28.5 32.9 15% IT 197 210 Havas (incl. TGS) 23.2 40.9 76% Security 233 270 BTA (incl. IDO) 11.5 12.5 9% Latvia 3 3 Others 10.4 3.5 -66% Medinah(100%) 254 291 Total 344.1 397.7 16% Academy - 11 Elimination -5.3 -1.1 -78% TOTAL 22,704 23,698 Consolidated 338.8 396.6 17% 27 Service Companies KPIs
ATU Revenues (€m) Duty Free Spend per Pax (€)
Q1 Q2 Q3 Q4 Istanbul TAV
17,1 69 16,6 16,5 68 16,3 16,0 16,0 15,7 56 74 47 72 37 57 47 73 41 65 53 38 42 61 29 33 41 50 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 # of Flights Served (‘000) TAV F&B Spend per Pax (€)
15% FY12 426 2,1 FY13 2,0 363 1,8 19% 1,6 1,3 1,3 252 1,3 5% 203
117 124 13%
43 49
HAVAŞ TGS HAVAŞHVŞ EUROPE E HAVAŞHAVAŞ + TGS + + TGS HAVAŞ + 2007 2008 2009 2010 2011 2012 2013 EUROPE HVŞ E 28 Source: DHMI, TAV Timeline
2011 2012 2013 Q1 Q1 Q1
• Tunisian civil unrest started • Izmir domestic operations were taken over by TAV Ege on •Compensation letter received from DHMI regarding our • TAV Latvia took over the duty free operations in Riga January 2012. Company’s concession rights in Istanbul Ataturk Airport International Airport • HAVAS had to suspend bus services in Istanbul temporarily as •Tbilisi extension project cancelled • Increased shareholding in TAV Security from 67% to 100% of 14.01.2012 due to the decision of Istanbul Metropolitan Municipality.
Q2 Q2 Q2
• Increased shareholding in TAV Urban Georgia from 66% to • Transfer of 38% of TAV Airports shares to ADP has taken •The New Istanbul Airport tender was held. TAV Airports did 76% place in May 2012 not win the tender. • Increased shareholding in TAV Batumi from 60% to 76% • First time cash dividend of €39m •Cash dividend of €59m paid. • Adjustments incurred within the context of the tax amnesty • Operations of Medinah Airport were taken over in June 2012 •Havas Europe Helsinki & Stockholm stations closed. legislation (€2.9m one-off expense) • 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 Q3
• Skopje Airport construction finalized •An MoU is signed to extend the Tbilisi concession for 10 years •TAV Airports’ consortium prequalified for LaGuardia Airport • BTA IDO established and the multistage takeover of the 9 months in exchange for new runway to cost $65m (MoU tender. catering operations in IDO ferries initiated cancelled in Q1 2013. No Capex) • One-off provision of c€5m (KTHY) •TAV Airports agreed to acquire the remaining 35% of Havas • THY CIP Lounge operations at Istanbul Atatürk Airport shares for €80m. International terminal ended •Holding made one off Medinah acquisition expenses (€0.2m in Q1, €0.5m in Q2, €2.0m in Q3)
Q4 Q4 Q4
• Tunisian elections took place •Transfer of acquired HavaS shares took place on October 3, •Zagreb airport taken over in December 2013 by consortium. • Increased shareholding in Havas Europe from 50% to 67% 2012. • At the end of 2013, corporate taxes in Tunisia have been • Izmir Adnan Menderes Airport International and domestic •TAV Airports signed a LOI for 15% participation in the Zagreb decreased from 30% to 25%. tender won , TAV Ege was established, €12m paid as rent Airport consortium composed of ADPM and BBI. advance •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
29 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 30 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 !!
31 Share Performance (April 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 TL 14% 16% 11% 1,70 5,50 USD 14% 13% 7% 1,50 5,00 Relative to ISE -100 -1% 8% 7% 4,50 1,30
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
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
32 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 2012, foreign visitors reached 32m (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 33 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 34 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 €(1)m (Jan. 2021) €2.5 (Transfer) VAT BOT 0.6m Dom. , Ankara Esenboga 100% Terminal 10,9 €15 €3 0.75m Int'l for - €84m (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) €155m 2006 + %3 p.a. (Dec. 2032) Lease Gazipasa 100% Airport 0,4 €5 TL2 No $50,000+VAT(5) €16m (May 2034) BOT Tbilisi 76% Airport 1.4 US$22 US$6 No - €(1)m (Feb. 2027) BOT Batumi 76% Airport 0.2 US$12 US$7 No - €(1)m (Aug. 2027) 11-26% of BOT+Concession Monastir&Enfidha 67% Airport 3.4 €9 €1 No revenues from €344m (May 2047) 2010 to 2047 BOT+Concession €17.5 in 15% of the Skopje & Ohrid 100% Airport 1,1 Skopje, €16.2 - No gross annual €55m (March 2030) in Ohrid turnover (2) BTO+Concession Medinah 33% Airport 4.7 SAR 80 (3) - No 54.5%(4) €146m (2037) BOT+Concession €15 (7) €2.0 - €11.5m fixed Zagreb 15% Airport 2.3 €7(7) No 0.5% (2016) - 61% - (April 2042) €4 (Transfer) (2042) variable
1) As of 31 December 2013 2) The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers 3) SAR 80 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years 4) The concession charge will be reduced to 27.3 % for the first two years that follow the completion of the construction. 5) TAV Gazipaşa shall make a yearly rent payent of US$ 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 35 Macro Outlook
Estimates Country Units Scale 2011 2012 2013 2014 2015 2016 2017 2018 Start After Croatia U.S. dollars Billions 61,722 56,475 58,601 61,280 64,833 69,035 73,476 78,203 2012 U.S. dollars Units 14,021,390 12,829,451 13,312,349 13,920,989 14,728,139 15,682,694 16,691,559 17,765,316 2012 %chg 2,262 3,427 2,988 2,500 2,700 2,900 3,000 3,000 2012 Persons Millions 4,402 4,402 4,402 4,402 4,402 4,402 4,402 4,402 2012 Georgia U.S. dollars Billions 14,435 15,830 15,953 16,622 17,806 19,462 21,293 23,310 2012 U.S. dollars Units 3,229,808 3,519,588 3,557,975 3,718,576 3,995,667 4,380,646 4,807,533 5,279,142 2012 %chg 8,543 -0,944 -0,260 4,000 5,000 5,000 5,000 5,000 2012 Persons Millions 4,469 4,498 4,484 4,470 4,456 4,443 4,429 4,415 2012 Latvia U.S. dollars Billions 28,480 28,380 30,380 32,454 34,914 37,491 40,199 43,053 2012 U.S. dollars Units 13,728,016 13,899,892 14,923,985 15,990,686 17,254,825 18,584,047 19,986,389 21,469,736 2012 %chg 4,223 2,285 0,688 2,100 2,300 2,300 2,300 2,300 2012 Persons Millions 2,075 2,042 2,036 2,030 2,023 2,017 2,011 2,005 2012 Macedonia U.S. dollars Billions 10,561 9,630 10,507 11,424 12,421 13,405 14,399 15,452 2012 U.S. dollars Units 5,122,036 4,660,052 5,073,330 5,503,798 5,970,850 6,429,596 6,890,950 7,378,698 2011 %chg 3,902 3,314 2,800 2,100 2,000 2,000 2,000 2,000 2011 Persons Millions 2,062 2,066 2,071 2,076 2,080 2,085 2,090 2,094 2011 Saudi Arabia U.S. dollars Billions 669,507 711,050 718,472 746,819 770,569 798,830 832,741 870,977 2012 U.S. dollars Units 23,599,107 24,523,916 24,246,471 24,684,740 24,970,328 25,378,559 25,937,184 26,596,173 2010 %chg 3,749 2,857 3,760 3,582 3,526 3,507 3,502 3,501 2012 Persons Millions 28,370 28,994 29,632 30,254 30,859 31,477 32,106 32,748 2010 Tunisia U.S. dollars Billions 46,435 45,407 48,379 51,471 55,659 59,754 64,603 69,365 2012 U.S. dollars Units 4,350,336 4,213,149 4,431,304 4,654,021 4,968,085 5,265,197 5,619,394 5,956,128 2010 %chg 3,529 5,582 6,000 4,700 4,700 4,200 4,000 4,000 2012 Persons Millions 10,674 10,778 10,918 11,060 11,203 11,349 11,496 11,646 2010 Turkey U.S. dollars Billions 774,775 788,299 821,798 851,434 941,925 1,042,781 1,155,239 1,279,825 2012 U.S. dollars Units 10,477,014 10,526,796 10,744,699 11,011,252 12,052,480 13,205,276 14,482,852 15,888,582 2012 %chg 6,472 8,892 7,71 6,491 6,041 6,041 6,041 6,041 2012 Persons Millions 73,950 74,885 76,484 77,324 78,152 78,967 79,766 80,550 2012
IMF, World Economic Outlook Database, October 2013 36 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. 37 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 (99%) 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%) 38 *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 39 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 April 09, 2014
40