2016 Annual Report Airport Operations of Tav and Adp
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TURKEY ISTANBUL ISTANBUL ATATURK AIRPORT ANKARA ESENBOGA AIPRORT IZMIR ADNAN MENDERES AIRPORT GAZIPASA ALANYA AIRPORT MILAS BODRUM AIRPORT ADANA SAKIRPASA AIRPORT ADIYAMAN AIRPORT AGRI AIRPORT ANTALYA AIRPORT BATMAN AIRPORT DALAMAN AIRPORT ELAZIG AIRPORT ERZINCAN AIRPORT GAZIANTEP OGUZELI AIRPORT HATAY AIRPORT HOPA AIRPORT KAHRAMANMARAS AIRPORT KASTAMONU AIRPORT KAYSERI ERKILET AIRPORT KONYA AIRPORT KUTAHYA ZAFER AIRPORT MALATYA AIRPORT MUS AIRPORT AMASYA MERZIFON AIRPORT NEVSEHIR CAPPADOCIA AIRPORT ORDU-GIRESUN AIRPORT SABIHA GOKCEN AIRPORT SAMSUN CARSAMBA AIRPORT SINOP AIRPORT SIVAS AIRPORT SIRNAK AIRPORT SANLIURFA AIRPORT TRABZON AIRPORT KOCAELI AIRPORT VAN AIRPORT GEORGIA AIRPORT TBILISI AIRPORT BATUMI AIRPORT KOPITNARI AIRPORT KUTAISI AIRPORT CROATIA ZAGREB AIRPORT LATVIA RIGA AIRPORT MACEDONIA SKOPJE ALEXANDER THE GREAT AIRPORT OHRID ST. PAUL THE APOSTLE AIRPORT TUNISIA ENFIDHA HAMMAMET AIRPORT MONASTIR HABIB BOURGUIBA AIRPORT CARTHAGE AIRPORT TOZEUR NEFTA AIRPORT SFAX THYNA AIRPORT TABARKA AIN DRAHAM AIRPORT DJERBA ZARZIS AIRPORT SAUDI ARABIA MADINAH AIRPORT RIYADH AIRPORT DAMMAM AIRPORT JEDDAH AIRPORT USA HOUSTAN GEORGE BUSH AIRPORT WASHINGTON AIRPORT GERMANY FRANKFURT AIRPORT MUNICH AIRPORT STUTTGART AIRPORT LEIPZIG HALLE AIRPORT HAMBURG AIRPORT BERLIN TEGEL AIRPORT DUSSELDORF AIRPORT BAE ABU DHABI AIRPORT QATAR DOHA AIRPORT THAILAND PHUKET AIRPORT OMAN SALALAH AIRPORT MUSCAT AIRPORT KENYA NAIROBI AIRPORT JOMO KENYATTA AIRPORT TURKEY ISTANBUL ISTANBUL ATATURK AIRPORT ANKARA ESENBOGA AIPRORT IZMIR ADNAN MENDERES AIRPORT GAZIPASA ALANYA AIRPORT MILAS BODRUM AIRPORT ADANA SAKIRPASA AIRPORT ADIYAMAN AIRPORT AGRI AIRPORT ANTALYA AIRPORT BATMAN TAV AIRPORTS ANNUAL REPORT 2016 REPORT ANNUAL AIRPORTS TAV AIRPORT DALAMAN AIRPORT ELAZIG AIRPORT ERZINCAN AIRPORT GAZIANTEP OGUZELI AIRPORT HATAY AIRPORT HOPA AIRPORT KAHRAMANMARAS AIRPORT KASTAMONU AIRPORT KAYSERI ERKILET AIRPORT KONYA AIRPORT KUTAHYA ZAFER AIRPORT MALATYA AIRPORT MUS AIRPORT AMASYA MERZIFON AIRPORT NEVSEHIR CAPPADOCIA AIRPORT ORDU-GIRESUN AIRPORT SABIHA GOKCEN AIRPORT SAMSUN CARSAMBA AIRPORT TAV AIRPORTS ANNUAL REPORT 2016 SINOP AIRPORT SIVAS AIRPORT SIRNAK AIRPORT SANLIURFATAV AIRPORTS AIRPORT ANNUAL TRABZON REPORT AIRPORT 2016 KOCAELI AIRPORT VAN AIRPORT GEORGIA AIRPORT TBILISI4 AIRPORTCONTINENTS BATUMI 15 AIRPORT COUNTRIES KOPITNARI 69 AIRPORTS AIRPORT KUTAISI AIRPORT CROATIA ZAGREB AIRPORT LATVIA RIGA AIRPORT MACEDONIA SKOPJE ALEXANDER THE GREAT AIRPORT OHRID ST.PAUL THE APOSTLE AIRPORT TUNISIA ENFIDHA HAMMAMET AIRPORT MONASTIR HABIB BOURGUIBA AIRPORT CARTHAGE AIRPORT TOZEUR NEFTA AIRPORT SFAX THYNA AIRPORT TABARKA AIN DRAHAM AIRPORT DJERBA ZARZIS AIRPORT SAUDI ARABIA MADINAH AIRPORT RIYADH AIRPORT DAMMAM AIRPORT JEDDAH AIRPORT USA HOUSTAN GEORGE BUSH AIRPORT WASHINGTON AIRPORT GERMANY FRANKFURT AIRPORT MUNICH AIRPORT STUTTGART AIRPORT LEIPZIG HALLE AIRPORT HAMBURG AIRPORT BERLIN TEGEL AIRPORT DUSSELDORF AIRPORT BAE ABU DHABI AIRPORT QATAR DOHA AIRPORT THAILAND PHUKET AIRPORT OMAN SALALAH AIRPORT MUSCAT AIRPORT KENYA NAIROBI AIRPORT JOMO KENYATTA AIRPORT TURKEY ISTANBUL ISTANBUL ATATURK AIRPORT ANKARA ESENBOGA AIPRORT IZMIR ADNAN MENDERES AIRPORT GAZIPASA ALANYA AIRPORT MILAS BODRUM AIRPORT ADANA SAKIRPASA AIRPORT ADIYAMAN AIRPORT AGRI AIRPORT ANTALYA AIRPORT BATMAN AIRPORT DALAMAN AIRPORT ELAZIG AIRPORT ERZINCAN AIRPORT GAZIANTEP OGUZELI AIRPORT HATAY AIRPORT HOPA AIRPORT KAHRAMANMARAS AIRPORT KASTAMONU AIRPORT KAYSERI ERKILET AIRPORT KONYA AIRPORT KUTAHYA ZAFER AIRPORT MALATYA AIRPORT MUS AIRPORT AMASYA MERZIFON AIRPORT NEVSEHIR CAPPADOCIA AIRPORT ORDU-GIRESUN AIRPORT SABIHA GOKCEN AIRPORT SAMSUN CARSAMBA AIRPORT SINOP AIRPORT SIVAS AIRPORT SIRNAK AIRPORT SANLIURFA AIRPORT TRABZON AIRPORT KOCAELI AIRPORT VAN AIRPORT GEORGIA AIRPORT TBILISI AIRPORT BATUMI AIRPORT KOPITNARI AIRPORT KUTAISI AIRPORT CROATIA ZAGREB AIRPORT LATVIA RIGA TAV AIRPORTS HOLDING Stock Ticker Symbol: TAVHL AIRPORT MACEDONIA SKOPJE ALEXANDER THE GREAT AIRPORT OHRID ST.PAUL THE APOSTLE AIRPORT Date of Istanbul Trade Registry: 07.11.1997 TUNISIA ENFIDHA HAMMAMET AIRPORT MONASTIR HABIB BOURGUIBA AIRPORT CARTHAGE AIRPORT Trade Registration & MERSIS No: 590256 / 0832-0062-0900-0011 TOZEUR NEFTA AIRPORT SFAX THYNA AIRPORT TABARKA AIN DRAHAM AIRPORT DJERBA ZARZIS Phone: +90 212 463 3000 / 2122-2123-2124 AIRPORT SAUDI ARABIA MADINAH AIRPORT RIYADH AIRPORT DAMMAM AIRPORT JEDDAH AIRPORT USA Fax: +90 212 465 3100 HOUSTAN GEORGE BUSH AIRPORT WASHINGTON AIRPORT GERMANY FRANKFURT AIRPORT MUNICH Website: www.tavhavalimanlari.com.tr AIRPORT STUTTGART AIRPORT LEIPZIG HALLE AIRPORT HAMBURG AIRPORT BERLIN TEGEL AIRPORT Address: Istanbul Ataturk Airport International Terminal (Gate A-Next to VIP) 34149 Yesilkoy, Istanbul DUSSELDORF AIRPORT BAE ABU DHABI AIRPORT QATAR DOHA AIRPORT THAILAND PHUKET AIRPORT AMMAN SALALAH AIRPORT MUSCAT AIRPORT KENYA NAIROBI AIRPORT JOMO KENYATTA AIRPORT CONTENTS 02 TAV Airports: A Global Brand in Airport Operations 03 Airport Operations of TAV and ADP 04 TAV’s Growth Strategy 06 Board of Directors’ Message 08 CEO’s Message 10 Concessions at a Glance 12 MAJOR DEVELOPMENTS IN 2016 12 Aviation Industry and TAV 22 Financial Summary 23 Investments in 2016 23 Awards & Achievements 24 Our Service Companies in 2016 31 Highlights of 2016 35 Subsequent Events 36 Investor Relations and BIST Performance 38 CORPORATE GOVERNANCE AND SUSTAINABILITY 38 Sustainability 40 Risk Management and Internal Audit 43 Corporate Governance Principles Compliance Report 58 Operating Principles of the Committees 60 Ordinary General Assemblies 62 Board of Directors 68 Senior Management 73 Financial Benefits Provided to the Members of the Board of Directors and Senior Management 74 Amendment of the Articles of Association 74 Dividends 75 Subsidiary Report 75 Auditor’s Report 76 Auditor’s Report on Risk Assessment Committee and Risk Management 76 Statement of Responsibility 77 Statement of Independence 78 OPERATIONAL & FINANCIAL FIGURES 78 Euro Based Financials 78 Guidance and Actuals 78 Developments in 2016 78 Guidance for 2017 79 Operational and Financial Performance 80 Airport Companies 81 Service Companies 81 TAV in Figures 83 Consolidated Financial Statements and Independent Audit Report 194 Glossary * 4 Continents 15 Countries 69 Airports on December 31, 2016. IN MEMORY OF TAV AIRPORTS: A GLOBAL BRAND IN AIRPORT OPERATIONS TAV Operations ADP Operations TAV Airports, Turkey’s global airport operator, has operations in many TAV Commercial Flights countries around the world. The Company operates Istanbul Ataturk, Ankara Esenboga, Izmir Adnan Menderes, Gazipasa Alanya and Milas ADP’s Share Bodrum Airports in Turkey. Additionally, TAV Airports operates one TAV’s Share airport in Saudi Arabia, two airports each in Macedonia, Tunisia and Georgia and Zagreb Airport in Croatia. TAV Airports Holding with its ADP Passengers subsidiaries and affiliates also conducts business in related areas TAV Passengers of airport operations including duty free, food & beverage services, ground handling services, information technologies, security and operation services. In addition, TAV Airports provides commercial LATVIA services at Riga Airport in Latvia’s capital city. Riga A. 100% In 2016, TAV Airports served nearly 808 thousand flights and 104 Only commercial areas million passengers. The Company’s shares are listed on Borsa Istanbul under the ticker code TAVHL. FRANCE Paris Charles de Gaulle A. 100% TAV AIRPORTS OWNERSHIP STRUCTURE(1) Paris Orly A. 100% MEXICO Groupe ADP* Passengers 97 Million Tepe Insaat Sanayi A.S. Akfen HoldIng A.S. Sera YapI EndustrIsI ve TIcaret A.S. CROATIA Free-float (Other) Zagreb A. 15% Non-floatIng (Other) Zagreb A. 21% GROUPE ADP* Commercial Flights 38.0% 41 Thousand CHILE TEPE INSAAT SANAYI A.S. Passengers 8.1% 2.8 Million Concession Operator AKFEN HOLDING A.S. 8.1% MEXICO TURKEY SERA YAPI ENDUSTRISI VE TICARET A.S. Istanbul Ataturk A. 2.0% 13 Regional Airports 100% FREE-FLOAT (OTHER) Number of Passengers: Izmir Adnan Menderes A. 40.6% 18.9 Million 100% Consulting Ankara Esenboga A. NON-FLOATING (OTHER) 100% 3.2% Gazipasa Alanya A. JORDAN 100% There are no privileged shares in TAV Airports Holding. Mr. Amman Queen Alia A. Milas Bodrum A. 9% 100% Hamdi Akin indirectly has 6.9% of TAV Airports Holding shares Passengers Commercial Flights due to his shares in Akfen Holding. 7.4 Million 655 Thousand Management Contract and Passengers * TANK OWA Alpha GmbH, a wholly owned subsidiary of Groupe ADP*. Strategic Partner (1) As of 31 December 2016 89 Million 2 TAV AIRPORTS HOLDING 2016 ANNUAL REPORT AIRPORT OPERATIONS OF TAV AND ADP TAV TAV AND ADP 3 4 CONTINENTS CONTINENTS 7 15 COUNTRIES COUNTRIES 14 23 AIRPORTS AIRPORTS 104 Million 240 Million PASSENGERS PASSENGERS *Excluding Schiphol and Riga Airport passengers TUNISIA BELGIUM Monastir A. LATVIA 67% NETHERLANDS Enfidha A. CROATIA 67% MACEDONIA Commercial Flights 13 Thousand GEORGIA Passengers 1.6 Million FRANCE TURKEY Concession Operator TUNISIA JORDAN SAUDI ARABIA SAUDI ARABIA Medinah A. 33% Commercial Flights 54 Thousand Passengers 6.6 Million GUINEA Concession Operator MAURITIUS GEORGIA Tbilisi A. 80% Batumi A. 76% Commercial Flights 28 Thousand CHILE NETHERLANDS REPUBLIC OF MAURITIUS Passengers 2.6 Million Santiago de Chile A. Amsterdam Schiphol A. Mauritius A. 45% 8% 10% Concession Operator Passengers Passengers Passengers 19.2 Million 63.6 Million 3.5 Million MACEDONIA Concession Operator Industrial Cooperation Operator and Strategic Partner Ohrid A. 100% Skopje A. GUINEA BELGIUM SAUDI ARABIA 100% Conakry A. Liège A. Jeddah A. Commercial