TAV Airports Holding Management Presentation November 2015 Investment Highlights Turkey is the fastest growing aviation market in Europe Passenger growth of 14% p.a. during 2002-2014 Attractive market with Projected passenger growth of 9% p.a. between 2014-2023(1) strong growth prospects Aggressive capacity expansion plans of major airlines in Turkey. (2) (fleet to double in 10 years) Access to fast growing MENA region Diversified, balanced portfolio with leading market positions Leading airport operator #1 airport terminal operator in Turkey with diversified portfolio 14 airports operated in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia, Croatia and Latvia & integrated structure (large catchment areas) 65 airports around the world have a TAV Airports subsidiary functioning in them Strong vertically integrated value chain Strong momentum with EBITDA posting 40% CAGR between 2006 and 2014 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 Hard currency based cash flow & visible earnings Well-positioned to benefit from further organic and inorganic growth “Platform play” Istanbul Ataturk Airport expansion project Philippines: with Metro Pacific and ADP Group Inorganic growth of service companies (1) Source: Turkey’s Ministry of Transport (2) THY and Pegasus web site 2 Exceptional Growth Sustained Revenue (€m) EBITDA (€m) CAGR (2006-14) CAGR (2006-14) 434 12% 983 40% 381 904 Pre-IFRS11 847 328 Pre-IFRS11 Post-IFRS11 Post-IFRS11 402 508 627 640 785 881 1099 1205 29 77 141 167 212 257 339 397 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 Passenger (m) Net Profit (€m) CAGR (2006-14) 95 CAGR (2008-14) 218 19% 84 94% 72 129 133 53 48 41 42 53 30 51 50 23 4 2006 2007 2008 2009 2010 2011 2012 2013 2014 -38 2006 2007 2008 2009 2010 2011 2012 2013 2014 -71 3 TAV Corporate and Shareholder Structure TAV Airports Holding Co. Shareholder Structure Airport Companies Service Companies (2) 8.1% (3) 8.1% Ataturk (100%) ATU (50%) (4) (1) 2.0% 38.0% (5) Esenboga 3.5% (100%) BTA (67%) Adnan Menderes (100%) Havas (100%) (6) Gazipasa Alanya 40.3% (100%) TGS (50%) Milas Bodrum (100%) Shareholders Havas Europe (67%) Medinah (33%) 1. Aéroports De Paris* Tbilisi (80%) & Internationally acclaimed airport operating company with global Batumi (76%) OS (100%) operations 2. Tepe Insaat Sanayi A.S. Turkish integrated conglomerate focused on infrastructure and Monastir & construction Enfidha (67%) IT (100%) 3. Akfen Holding A.S. Holding company operating in the infrastructure, construction, seaport, Skopje & Ohrid REIT and energy sector (100%) 4. Sera Yapi Endustrisi A.S. Focused on construction in Turkey & MENA region Security (100%) 5. Other Non-floating Latvia (100%) 6. Other Free Float Zagreb (15%) Academy (100%) 4 *Through Tank oWA Alpha GMBH TAV Airports Business Areas Airports Duty free Food and beverage Ground handling Others Turkey ATU (50%) BTA (67%) HAVAS (100%) TAV OS (100%) Istanbul Ataturk Airport Largest duty free operator in Operating in Turkey, Georgia, Major ground handler in Commercial area (100%) Turkey Macedonia, Tunisia, Turkey with a c.65% share allocations and lounges, Ankara Esenboga Airport Partner with Unifree–owned Medinah and Oman Operates in 25 airports in travel agency services (100%) by Heinemann, leading Operates Istanbul Airport Turkey including Istanbul, TAV IT (100%) Izmir Adnan Menderes German travel retailer Hotel (131 rooms) Ankara, Izmir and Antalya Airport (100%) Airport IT services (Travel Value) Gazipasa Alanya Airport Total seating capacity of c. 21 TGS (50%) operates in TAV Security (100%) Operating in Turkey, Georgia, thousand at c. 300 points Istanbul (AHL&SGA), Ankara, (100%) Security service provider in Tunisia, Macedonia and including BTA IDO and UNIQ Izmir, Antalya, Adana, Milas Bodrum Airport (100%) Istanbul, Ankara, Izmir and Latvia, Oman and Medinah Bodrum and Dalaman Georgia Baker and pastry factory Gazipasa Tbilisi (80%) and Batumi Operating in Houston, USA serving in Turkey 67% owner of Havas Europe, TAV Latvia (100%) Airports (76%) as of September,2015. BTA Denizyollari (50%) is the operating in Riga and 6 Commercial area Tunisia airports in Germany F&B operator of Istanbul management in Riga Monastir and Enfidha Deniz Otobusleri (IDO) Airport Airports (67%) Uniq shopping mall food- TAV Academy (100%) Macedonia court Skopje and Ohrid Airports (100%) Saudi-Arabia Medinah (33%) Croatia Zagreb Airport (15%) 5 Growth of the Turkish Aviation Market and TAV Airports Turkish Aviation Market (mPax) Number of Aircraft in Turkey Domestic Int'l Total CAGR (2002-14) 441 166 12% 385 CAGR (2002-14) 150 370 14% 349 130 332 118 299 103 270 86 259 79 240 250 65 70 57 202 45 162 34 34 110 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TAV Airports Passenger Traffic (mPax) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 95 84 Deregulation of the domestic market in 2003 CAGR (2002-14) 22% 72 2nd largest country in Europe in terms of population: (1) 53 75m 48 41 42 In 2014, foreign visitors reached 37m (2) 30 23 Limited alternative transport infrastructure 17 9 9 10 Aircraft number in Turkey expected to reach 750 in 2023 (3) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Ministry of Transport 6 State Airports Authority Turkish Aviation Market Forecast Domestic International Mn, pax 350 CAGR (2009-23) 11% CAGR (2014- 170 18) 8% 226 204 192 178 20% 166 6% 115 149 9% 96 130 91 83 118 80 104 73 2% 86 66 59 6% 180 52 7% 44 110 95 101 107 76 86 58 65 41 51 2009 2010 2011 2012 2013 2014 2015e 2016e 2017e 2018e // 2023e Source: State Airports Authority 7 Traffic Outlook 1. 2. 3. 4. 5. World Air Traffic will Turkish air traffic will Aggressive fleet 11% seat capacity Extension plans at double in the next 15 double in the next 10 expansion plans of growth in 2015 Ataturk Airport years years major airlines in Turkey . Boeing projects 4.9% . Pax to double in 10 . THY to expand . 11% seat capacity Terminal capacity will CAGR for world air years. fleet size to 428 by increase expected increase by extension traffic (2014-2034) 2020. at Ataturk Airport of International . Eurocontrol, projects int’l scheduled Terminal. Airbus projects 4.6% 7% CAGR for Turkey . Pegasus to traffic in 2015 . CAGR for for world air until 2020 while DHMI increase fleet to following 13% Number of aircraft traffic (2014-2034) expects 9% CAGR in 100 by 2020. increase in 2014. parking positions to Turkey until 2023. increase from 102 to 145 (funded by DHMI). Source: THY Presentation (3Q 2015) Source: Airbus Global Market Forecast 2015, Source: ADI Pegasus Presentation (3Q 2015) Source: DHMI, Ministry of Transport Boeing Current Market Outlook 2015 Source: Eurocontrol, DHMI 8 Traffic Performance 10M FY Istanbul: 11% international pax growth with 16% increase Passengers (1) 2014 2015 Chg % 2013 2014 Chg % in int-to-int transfer pax. Ataturk Airport 47.774.322 52.162.125 9% 51,297,790 56,954,790 11% International 32.112.128 35.672.335 11% 34,079,118 38,200,788 12% Domestic 15.662.194 16.489.790 5% 17,218,672 18,754,002 9% Esenboga Airport 9.248.659 10.209.125 10% 10,942,060 11,012,119 1% Spearheaded by THY’s fleet expansion International 1.260.473 1.367.096 8% 1,572,228 1,445,044 -8% Domestic 7.988.186 8.842.029 11% 9,369,832 9,567,075 2% Istanbul transfer share: 39%, 38% in 9M14 Izmir Airport 9.358.577 10.292.790 10% 10,233,140 10,936,772 7% International 2.391.070 2.399.733 0% 2,479,157 2,577,908 4% Domestic 6.967.507 7.893.057 13% 7,753,983 8,358,864 8% Gazipasa Airport 676.345 855.562 26% 338,522 726,252 115% Ankara: Increased international capacity by various International 390.720 504.022 29% 227,932 409,253 80% carriers and domestic capacity by Anadolu Jet Domestic 285.625 351.540 23% 110,590 316,999 187% Milas-Bodrum Domestic 1.861.035 2.137.850 15% 1,738,027 2,017,703 16% Medinah 5.008.516 5.078.354 1% 4,669,181 5,703,349 22% Izmir: Domestic driven by THY, Pegasus & Sunexpress Tunisia (Monastir&Enfidha) 3.148.655 1.337.455 -58% 3,437,849 3,332,391 -3% Georgia (Tbilisi&Batumi) 1.551.497 1.801.854 16% 1,642,597 1,788,571 9% Macedonia (Skopje&Ohrid) 1.098.636 1.321.328 20% 1,067,467 1,278,343 20% Gazipasa: THY and Anadolu Jet introduced year round Zagreb Airport 2.091.449 2.233.166 7% 2,300,231 2,430,971 6% domestic flights. TAV TOTAL (3) 80.767.908 87.429.609 8% 83,628,606 95,127,477 14% International 46.895.510 49.588.283 6% 47,407,199 54,615,845 15% Domestic 33.872.398 37.841.326 12% 36,221,407 40,511,632 12% Milas-Bodrum: THY increased frequency of flights 10M FY Air Traffic Movements (2) 2014 2015 Chg % 2013 2014 Chg % Ataturk Airport 351.148 375.337 7% 385,998 422,174 9% Medinah: Ongoing construction in the Harem area International 238.562 261.603 10% 259,432 287,519 11% Domestic 112.586 113.734 1% 126,566 134,655 6% Esenboga Airport 69.101 73.883 7% 85,077 82,239 -3% Tunisia: Impact of Bardo and Sousse attacks International 10.063 10.500 4% 13,051 11,697 -10% Domestic 59.038 63.383 7% 72,026 70,542 -2% Izmir Airport 61.500 68.591 12% 69,216 74,048 7% Georgia: