TAV Airports Holding

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 strong growth prospects  Projected passenger growth of 9% p.a. between 2014-2023(1)  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  #1 airport terminal operator in Turkey Leading airport operator with diversified portfolio & integrated structure  14 airports operated in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia, Croatia and Latvia (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  Proven track record of growth and profitability with attractive organic growth prospects  High financial returns and cash flow generation given fixed cost base (operational leverage) and minimal ongoing capex Strong financial performance and cash flow generation  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  Istanbul Ataturk Airport expansion project  Philippines: with Metro Pacific and ADP Group  Inorganic growth of service companies “Platform play” (1) Source: Turkey’s Ministry of Transport 2(2) THY and Pegasus web site Exceptional Growth Sustained <ul style="display: flex;"><li style="flex:1">EBITDA (€m) </li><li style="flex:1">Revenue (€m) </li></ul>434 <ul style="display: flex;"><li style="flex:1">CAGR (2006-14) </li><li style="flex:1">CAGR (2006-14) </li></ul><ul style="display: flex;"><li style="flex:1">12% </li><li style="flex:1">40% </li></ul>381 983 904 328 847 Pre-IFRS11 Post-IFRS11 Pre-IFRS11 Post-IFRS11 402 508 627 640 785 881 1099 1205 <ul style="display: flex;"><li style="flex:1">29 </li><li style="flex:1">77 141 167 212 257 339 397 </li></ul>2006 2007 2008 2009 2010 2011 2012 2013 2014 2006 2007 2008 2009 2010 2011 2012 2013 2014 <ul style="display: flex;"><li style="flex:1">Passenger (m) </li><li style="flex:1">Net Profit (€m) </li></ul><ul style="display: flex;"><li style="flex:1">95 </li><li style="flex:1">CAGR (2006-14) </li><li style="flex:1">CAGR (2008-14) </li></ul>218 <ul style="display: flex;"><li style="flex:1">19% </li><li style="flex:1">94% </li></ul>84 72 133 129 53 48 42 41 53 <ul style="display: flex;"><li style="flex:1">51 </li><li style="flex:1">50 </li></ul>30 23 42006 2007 2008 2009 2010 2011 2012 2013 2014 -38 -71 2006 2007 2008 2009 2010 2011 2012 2013 2014 3TAV Corporate and Shareholder Structure <ul style="display: flex;"><li style="flex:1">TAV Airports Holding Co. </li><li style="flex:1">Shareholder Structure </li></ul>Airport Companies Service Companies (2) 8.1% (3) 8.1% Ataturk (100%) ATU (50%) (4) 2.0% (1) 38.0% (5) 3.5% Esenboga (100%) BTA (67%) Adnan Menderes (100%) Havas (100%) TGS (50%) (6) 40.3% Gazipasa Alanya (100%) Milas Bodrum (100%) Shareholders Havas Europe (67%) Medinah (33%) 1. Aéroports De Paris* Internationally acclaimed airport operating company with global operations 2. Tepe Insaat Sanayi A.S. Turkish integrated conglomerate focused on infrastructure and construction 3. Akfen Holding A.S. Holding company operating in the infrastructure, construction, seaport, REIT and energy sector 4. Sera Yapi Endustrisi A.S. Tbilisi (80%) & Batumi (76%) OS (100%) IT (100%) Monastir & Enfidha (67%) Skopje & Ohrid (100%) Focused on construction in Turkey & MENA region 5. Other Non-floating 6. Other Free Float Security (100%) Academy (100%) Latvia (100%) Zagreb (15%) 4*Through Tank oWA Alpha GMBH TAV Airports Business Areas <ul style="display: flex;"><li style="flex:1">Airports </li><li style="flex:1">Duty free </li><li style="flex:1">Food and beverage </li><li style="flex:1">Ground handling </li></ul>Others <ul style="display: flex;"><li style="flex:1">Turkey </li><li style="flex:1">ATU (50%) </li><li style="flex:1">BTA (67%) </li><li style="flex:1">HAVAS (100%) </li><li style="flex:1">TAV OS (100%) </li></ul> Istanbul Ataturk Airport (100%)  Ankara Esenboga Airport (100%)  Izmir Adnan Menderes Airport (100%)  Gazipasa Alanya Airport (100%)  Milas Bodrum Airport (100%) Georgia  Tbilisi (80%) and Batumi Airports (76%) Tunisia  Monastir and Enfidha Airports (67%)  Largest duty free operator in Turkey  Operating in Turkey, Georgia, Macedonia, Tunisia, Medinah and Oman  Operates Istanbul Airport Hotel (131 rooms)  Total seating capacity of c. 21 thousand at c. 300 points including BTA IDO and UNIQ  Baker and pastry factory serving in Turkey  BTA Denizyollari (50%) is the F&B operator of Istanbul Deniz Otobusleri (IDO)  Uniq shopping mall foodcourt  Major ground handler in Turkey with a c.65% share  Commercial area allocations and lounges, travel agency services TAV IT (100%)  Airport IT services TAV Security (100%)  Security service provider in Istanbul, Ankara, Izmir and Gazipasa  Partner with Unifree–owned by Heinemann, leading German travel retailer (Travel Value)  Operating in Turkey, Georgia, Tunisia, Macedonia and Latvia, Oman and Medinah  Operating in Houston, USA as of September,2015.  Operates in 25 airports in Turkey including Istanbul, Ankara, Izmir and Antalya  TGS (50%) operates in Istanbul (AHL&SGA), Ankara, Izmir, Antalya, Adana, Bodrum and Dalaman  67% owner of Havas Europe, operating in Riga and 6 airports in Germany TAV Latvia (100%)  Commercial area management in Riga Airport TAV Academy (100%) Macedonia  Skopje and Ohrid Airports (100%) Saudi-Arabia  Medinah (33%) Croatia  Zagreb Airport (15%) 5Growth of the Turkish Aviation Market and TAV Airports <ul style="display: flex;"><li style="flex:1">Turkish Aviation Market (mPax) </li><li style="flex:1">Number of Aircraft in Turkey </li></ul><ul style="display: flex;"><li style="flex:1">Domestic </li><li style="flex:1">Int'l </li><li style="flex:1">Total </li></ul>130 441 CAGR (2002-14) 12% 166 385 150 CAGR (2002-14) 370 14% 349 332 118 299 103 86 270 259 250 79 70 240 65 202 57 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) 72 22%  2nd largest country in Europe in terms of population: 75m (1) 53 48  In 2014, foreign visitors reached 37m (2) 42 41 30  Limited alternative transport infrastructure 23 17 10 <ul style="display: flex;"><li style="flex:1">9</li><li style="flex:1">9</li></ul> 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 6State Airports Authority Turkish Aviation Market Forecast <ul style="display: flex;"><li style="flex:1">Domestic </li><li style="flex:1">International </li></ul>Mn, pax 350 CAGR (2009-23) 11% CAGR (2014- 170 18) 8% 226 204 192 178 20% 2% 166 6% 6% 115 9% 149 96 91 130 83 118 80 104 73 86 66 180 59 52 7% 44 <ul style="display: flex;"><li style="flex:1">110 </li><li style="flex:1">107 </li></ul>101 95 86 76 65 58 51 41 <ul style="display: flex;"><li style="flex:1">2009 </li><li style="flex:1">2010 </li><li style="flex:1">2011 </li><li style="flex:1">2012 </li><li style="flex:1">2013 </li><li style="flex:1">2014 </li><li style="flex:1">2015e </li><li style="flex:1">2016e </li><li style="flex:1">2017e </li><li style="flex:1">2018e </li><li style="flex:1">// </li><li style="flex:1">2023e </li></ul>Source: State Airports Authority 7Traffic Outlook 1. <ul style="display: flex;"><li style="flex:1">2. 3. </li><li style="flex:1">5. </li></ul>4. Turkish air traffic will double in the next 10 years Aggressive fleet expansion plans of major airlines in Turkey 11% seat capacity growth in 2015 World Air Traffic will double in the next 15 years Extension plans at Ataturk Airport . Terminal capacity will increase by extension of International . Pax to double in 10 . 11% seat capacity increase expected at Ataturk Airport int’l scheduled . Boeing projects 4.9% CAGR for world air . THY to expand fleet size to 428 by 2020. years. traffic (2014-2034) Terminal. . Eurocontrol, projects 7% CAGR for Turkey until 2020 while DHMI expects 9% CAGR in Turkey until 2023. traffic in 2015 following 13% increase in 2014. . Airbus projects 4.6% CAGR for for world air traffic (2014-2034) . Pegasus to increase fleet to 100 by 2020. . Number of aircraft parking positions to increase from 102 to 145 (funded by DHMI). Source: THY Presentation (3Q 2015) Pegasus Presentation (3Q 2015) Source: Airbus Global Market Forecast 2015, Boeing Current Market Outlook 2015 Source: ADI Source: DHMI, Ministry of Transport Source: Eurocontrol, DHMI 8Traffic Performance 10M 2015 47.774.322 52.162.125 32.112.128 35.672.335 15.662.194 16.489.790 9.248.659 10.209.125 FY Passengers (1) Ataturk Airport International Domestic Esenboga Airport International Istanbul: 11% international pax growth with 16% increase in int-to-int transfer pax. 2014 Chg % <ul style="display: flex;"><li style="flex:1">2013 </li><li style="flex:1">2014 </li></ul>Chg % 11% 12% 9% 1% -8% 2% 9% 51,297,790 56,954,790 11% 34,079,118 38,200,788 5% 17,218,672 18,754,002 10% 10,942,060 11,012,119 Spearheaded by THY’s fleet expansion 1.260.473 7.988.186 1.367.096 8.842.029 8% 11% 1,572,228 9,369,832 1,445,044 9,567,075 Domestic 9.358.577 10.292.790 10% 10,233,140 10,936,772 7% 4% 8% Izmir Airport International Domestic Gazipasa Airport International Domestic Milas-Bodrum Domestic Medinah Istanbul transfer share: 39%, 38% in 9M14 2.391.070 6.967.507 676.345 2.399.733 7.893.057 855.562 0% 13% 26% 29% 23% 15% 1% -58% 16% 20% 7% 2,479,157 7,753,983 338,522 227,932 110,590 1,738,027 4,669,181 3,437,849 1,642,597 1,067,467 2,300,231 2,577,908 8,358,864 726,252 409,253 316,999 2,017,703 5,703,349 3,332,391 1,788,571 1,278,343 2,430,971 115% 80% 187% 16% 22% -3% 9% 20% 6% 14% 15% 12% Ankara: Increased international capacity by various carriers and domestic capacity by Anadolu Jet 390.720 504.022 285.625 351.540 1.861.035 5.008.516 3.148.655 1.551.497 1.098.636 2.091.449 2.137.850 5.078.354 1.337.455 1.801.854 1.321.328 2.233.166 Izmir: Domestic driven by THY, Pegasus & Sunexpress Tunisia (Monastir&Enfidha) Georgia (Tbilisi&Batumi) Macedonia (Skopje&Ohrid) Zagreb Airport Gazipasa: THY and Anadolu Jet introduced year round domestic flights. (3) 80.767.908 87.429.609 46.895.510 49.588.283 33.872.398 37.841.326 8% 83,628,606 95,127,477 6% 47,407,199 54,615,845 12% 36,221,407 40,511,632 TAV TOTAL International Domestic Milas-Bodrum: THY increased frequency of flights Medinah: Ongoing construction in the Harem area Tunisia: Impact of Bardo and Sousse attacks <ul style="display: flex;"><li style="flex:1">10M </li><li style="flex:1">FY </li></ul>Air Traffic Movements (2) Ataturk Airport International Domestic Esenboga Airport International Domestic Izmir Airport International Domestic Gazipasa Airport International Domestic Milas-Bodrum Domestic Medinah 2014 351.148 238.562 112.586 69.101 10.063 59.038 61.500 15.974 45.526 4.837 2015 375.337 261.603 113.734 73.883 10.500 63.383 68.591 17.986 50.605 6.188 Chg % 7% 10% 1% 2013 385,998 259,432 126,566 85,077 13,051 72,026 69,216 16,617 52,599 2,469 2014 422,174 287,519 134,655 82,239 11,697 70,542 74,048 17,770 56,278 5,349 Chg % 9% 11% 6% -3% -10% -2% 7% 4% 7% 12% 13% 11% 28% 33% 22% 13% 0% -46% 5% 10% 5% 7% 7% 7%  Georgia: New routes by Aeroflot and THY, increased capacity in CIS and Middle Eastern routes 117% 66% 228% 23% 21% -11% 1% 13% -1% 15% 17% 11% 2.665 2.172 3.534 2.654 1,698 771 2,822 2,527 Macedonia: Driven by WizzAir 13.873 41.913 20.811 20.384 11.902 32.502 620.266 366.830 253.436 15.618 42.112 11.321 21.492 13.033 34.056 661.631 389.545 272.086 12,718 40,000 30,077 23,512 12,380 38,894 648,729 374,678 274,051 15,642 48,549 26,763 23,804 13,969 38,348 742,892 438,379 304,513 Tunisia (Monastir&Enfidha) Georgia (Tbilisi&Batumi) Macedonia (Skopje&Ohrid) Zagreb Airport Zagreb: Driven by Croatian Airlines Pax+%: +7% like-for-like growth, +1% from Milas Bodrum domestic terminal (3) 7% 6% 7% TAV TOTAL International Domestic Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAH and MZLZ Note: DHMI figures for 2015 are tentative. (1) Both departing and arriving passengers, including transfer pax, pax numbers NOT stake adjusted (2) Commercial flights only (3) 2014 TAV totals do not include Milas-Bodrum until August. 9International Scheduled Traffic Developments & Outlook <ul style="display: flex;"><li style="flex:1">Istanbul International Seat Capacity </li><li style="flex:1">Istanbul International Pax </li></ul>(m, pax) <ul style="display: flex;"><li style="flex:1">2012 Pax </li><li style="flex:1">2013 Pax </li><li style="flex:1">2014 Pax </li><li style="flex:1">2015 Pax </li></ul>55443322(m, pax) 65544332Ramadan Effect 10M15: +11% +11% +13% Harsh winter <ul style="display: flex;"><li style="flex:1">+11% </li><li style="flex:1">+12% </li></ul>+14% 2012 Seat Capacity 2014 Seat Capacity 2013 Seat Capacity 2015 Seat Capacity <ul style="display: flex;"><li style="flex:1">Jan Feb Mar Apr May Jun </li><li style="flex:1">Jul </li><li style="flex:1">Aug Sep Oct Nov Dec </li></ul>Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Istanbul Transfer Pax / International Pax  11% Seat Capacity increase in 2013 vs 2012  13% Seat Capacity Increase in 2014 vs 2013  11% Seat Capacity Increase in 2015 vs 2014

TAV Airports Holding

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