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TAV Airports Holding
Management Presentation
February 2014
Investment Highlights
Turkey is the fastest growing aviation market in EuropePassenger growth of 14% p.a. during 2002‐2013Projected passenger growth of 11% p.a. during 2009‐2023(1)Attractive market with
strong growth prospectsAccess to fast growing MENA regionIstanbul is the most efficient hub for Europe, MENA Region(2)Aggressive capacity expansion plans of Turkish Airlines (seat capacity to double by 2021) (3)
strong growth prospects
Diversified, balanced portfolio with leading market positions#1 airport terminal operator in Turkey13 airports operating in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia, Croatia and Latvia(large catchment areas)Strong vertically integrated value chain
Leading airport operator with diversified portfolio& integrated structure
Strong vertically integrated value chain
Strong momentum with EBITDA posting 45% CAGR between 2006 and 2013High earnings visibility given clear / agreed regulatory frameworkStrong financial g g y g / g g yProven track record of growth and profitability with attractive organic growth prospectsHigh financial returns and cash flow generation given fixed cost base (operational leverage) and minimal ongoing capexTAV will receive compensation for all loss of profit in case of new Istanbul airport opening before 2021
Strong financial performance and cash
flow generation
2021Favorable cash flow exposure to FX due to FX denominated revenue (67% of combined revenues)
Well‐positioned to benefit from further organic and inorganic growthLa Guardia, Bodrum and Dalaman Airport tenders
2
, pIstanbul Ataturk Airport extension projectGazipasa 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(3) THY web site
“Platform play”
Double‐Digit Passenger Growth Continued
FY
Passengers (1) 2012 2013 Chg %Ataturk Airport 45,091,962 51,320,875 14%International 29,812,307 34,096,770 14%Domestic 15,279,655 17,224,105 13%E b Ai (2) 9 273 108 10 928 403 18%
The number of passengers using airports operated by TAV increased 17% (like‐for‐like growth of 13%) to 84 million in 2013, on the back of organic and inorganicgrowth.
Esenboga Airport (2) 9,273,108 10,928,403 18%International 1,593,737 1,573,943 ‐1%Domestic 7,679,371 9,354,460 22%Izmir Airport (3) 9,355,902 10,208,627 9%International 2,410,858 2,467,436 2%Domestic 6,945,044 7,741,191 11%Gazipaşa Airport 79,740 363,024 n.m.
The number of international passengers served at Istanbul Ataturk continued togrow in double digits, increasing by 14%, with 28% surge in international tointernational transfer passengers.
International 75,886 242,949 n.m.Domestic 3,854 120,075 n.m.Medinah(5) 4,588,158 4,669,181 2%Tunisia 3,321,244 3,437,849 4%Georgia 1,387,946 1,642,597 18%Macedonia 913,567 1,067,467 17%TAV TOTAL (4) 71,654,344 83,638,023 17%
Istanbul growth at double‐digit spearheaded by THY’s aggressive fleet expansionplan.
Ankara’s strong growth in domestic driven by Sun Express.
International 40,871,220 47,429,862 16%Domestic 30,783,124 36,208,161 18%
FYATM(2) 2012 2013 Chg %Ataturk Airport 346,060 387,965 12%International 231,293 260,686 13%Domestic 114 767 127 279 11%
Strong domestic growth in Izmir driven by SunExpress and Pegasus.
SAS, SunExpress and Pegasus increased regular flights to Gazipaşa dramatically.Domestic 114,767 127,279 11%Esenboga Airport (2) 74,860 85,241 14%International 13,266 13,133 ‐1%Domestic 61,594 72,108 17%Izmir Airport (3) 66,417 70,057 5%International 17,078 17,215 1%Domestic 49,339 52,842 7%Gazipaşa Airport 578 2 577 n m
Medinah passenger was flat due to visa restrictions arising from construction inthe holy pilgrimage area.
Tunisian passengers was relatively flat due to the political situation.Gazipaşa Airport 578 2,577 n.m.International 532 1,805 n.m.Domestic 46 772 n.m.Medinah(5) 36,282 40,000 10%Tunisia 27,350 30,077 10%Georgia 23,598 23,512 0%Macedonia 11,285 12,380 10%TAV TOTAL (4) 569 790 651 809 14%
Georgian airports are attracting both Turkish and Russian tourists.
Macedonia is being driven mainy by WizzAir.
3Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAHNotes: DHMİ figures for 2012 and 2013 are tentative. (1) Both departing and arriving passengers, including transfer pax(2) Commercial flights only
(3) TAV started to serve domestic passengers at Izmir Airport in January 2012(4) 2012 totals do not include Medinah data for the first half of the year and Gazipaşa for the whole year(5) TAV started to serve Medinah passengers on July 1, 2012
TAV TOTAL ( ) 569,790 651,809 14%International 330,935 376,719 14%Domestic 238,855 275,090 15%
International Scheduled Traffic Developments & Outlook
3 0
3.5
4.0 2012 Seat Capacity 2012 Pax
2 5
3.0
3.5 2011 Seat Capacity 2011 Pax(m, pax) (m, pax)
1.5
2.0
2.5
3.0
1.5
2.0
2.5
0.0
0.5
1.0
0.0
0.5
1.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
3 5
4.0
4.5 2013 Seat Capacity 2014 Seat Capacity
3 5
4.0
4.52013 Seat Capacity 2013 Pax
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec(m,pax)
(m,pax)
2 0
2.5
3.0
3.5
2 0
2.5
3.0
3.5
9 % Seat Capacity Increase vs. 2013 in the first 10 months
0 5
1.0
1.5
2.0
0 5
1.0
1.5
2.0 Gezi&Ramadan Effect
0.0
0.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0.0
0.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
4Source: Airport Data Intelligence (ADI)
State Airports Authority Turkish Aviation Market Forecast
350Domestic International Total
CAGR (2009 23)
Mn, pax
207
CAGR (2009‐23)11%
CAGR (2012‐16)12%
118130
150172
190
15%13%
10%9%
12%
86104
118
20%
18%
14%
14%
10%
11%
15%
12%10%
7%
13% 10%
9%
2009 2010 2011 2012 2013 2014e 2015e 2016e // 2023e
23% 11% 16% 13%15% 18%
5
Source: State Airports Authority
Ataturk Airport – DHMI’s Extension Plans
Domestic Terminal
International Terminal
Additional 15 new parking positions at theopposite of international terminal
Additional 43 new parking positions and taxiway
Cargo Terminal
104 existing parking positionsParking capacity to increase from 104 to 162
p g p yin former military area
6
Parking capacity to increase from 104 to 162(+56%)Construction is going
Istanbul ATM Capacity vs Peers with Similar Runway Structure
Istanbul Atatürk Airport Declared Capacities*
Istanbul Atatürk**: 58 ATM/hr
Zurich Airport: 68 ATM/hr
Vi Ai t 72 ATM/hVienna Airport : 72 ATM/hr
Zurich Airport Vienna Airport
7*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)
Major Airports in Turkey
Istanbul / Atatürk Airport
İstanbul / Sabiha Gökçen Airport‐Tender Date: 2007 ‐Type: BOT‐ Expire :2030
51,3 mIntl:34,1 mDom:17,2 m
Istanbul / Atatürk Airport‐Tender Date: 2005 ‐Type: Lease‐Expire: 2021
18,6 mIntl:6,7 mDom:11,9 m
Trabzon Airport
2,6 mIntl:0,1 mDom:2,5 m
10,9 m
10,2 mIntl:2,5 mDom:7,7 m
Ankara / Esenboğa Airport‐Tender Date: 2006 ‐Type: BOT‐Expire:2023
İzmir / A. Menderes Airport‐Tender Date: 2011 ‐Type: BOT+Lease‐ Expire :2032
Muğla / Bodrum‐Milas Airport‐Tender Date: 2006/2011*‐Type: BOT‐Expire:2015
Intl:1,6 mDom:9,4 m
4,3 m3 6 mGaziantep Airport
Intl:0,6 m Dom:3,8 m
Adana Airport
3,6 mIntl:1,9 mDom:1,7 m
1,9 mIntl:0,2 mDom:1,7 m0,36 m
Intl:0,24 mDom:0,12 m
Antalya Airport‐Tender Date: 2007 ‐Type: LeaseMuğla / Dalaman Airport
4,1 mIntl:3,2 mDom:0,9 m
Adana Airport
Operated by TAV
Gazipaşa Airport‐Tender Date: 2007 ‐Type: Lease‐Expire:2034
8
‐Tender Date: 2007 ‐Type: Lease‐Expire:2024
Muğla / Dalaman Airport‐Tender Date: 2004 ‐Type: Lease‐Expire:2015
* Astaldi took over the project in 2011** Pax numbers are for 2013 .
27,0 mIntl:21,5 mDom:5,5 m
Not privatized
Operated by others
La Guardia Airport
L G di Ai t PQLaGuardia Airport
LaGuardia Airport PQThe LGA Central Terminal Consortium, composed of Our Company, Aeroports deParis (ADP) Management, Goldman Sachs (GS Global Infrastructure Partners II, L.P.and GS International Infrastructure Partners II, L.P.), Tutor Perini Corporation, OveArup & Partners PC, Kohn Pederson Fox Associates PC, Suffolk Construction
d d d l l fCompany, 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). LaGuardiaInternational Airport served a total of 26 million passengers in 2012.
9
Financial Overview
IFRIC 12 Adjusted Financials
IFRS 11 and IFRIC 12 Adjusted Financials
(i € l t t d th i ) 2012(2) 2013 Ch % 2012(2) 2013 Ch %(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%
EBITDAmargin (%) 38.7% 42.1% 3.4 ppt 30.8% 32.9% 2.1 ppt
EBITDAR 463 524 13% 483 555 15%EBITDAR 463 524 13% 483 555 15%
EBITDARmargin (%) 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 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
10
( ) IFRS Source: TAV Airports Holding, DHMI, TAV Tunisie, TAV Macedonia, Georgian Aviation Authority, TIBAH
2013 Guidance Attained
Guidance Realization
Growth in Istanbul Ataturk Airport Passengers 14 to 16 percent 14 percent
Growth in Total TAV Airports Passengers
Growth in Revenues
15 to 18 percent
10 to 12 percent
17 percent
10 percentGrowth in Revenues
Growth in EBITDA 17 to 19 percent
10 to 12 percent 10 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 metAll financial targets are subject to the passenger targets being met.
11
Comparison to 2012
Consolidated Revenue (€m) EBITDA (€m) Net Profit (€m)
7% 16% 3%
129133
328381
847904
FY11 FY12FY11 FY12FY11 FY122012 2013 2012 2013 2012 2013
Consolidated Revenue (%) EBITDA (%) Opex (%)Duty‐free AviationGround‐handling F&BOther
Istanbul Other AirportsBTA HAVAŞOther Services
4%
Catering Services renderedD&A Duty‐freeOther Concession rentPersonnel
25%20%25%
19%
5%3%
11%
3%
8%
10%
4%9%
11%36%
4%8%
11%36%
31%16%
8%
16%
8%
54%
26%55%
24%19%
18%
2012
2013
12* IFRIC 12 adjusted
31%
16%22%
23%
Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s
Revenue (€m) 2012 2013 Chg.(%) Airports 614.8 658.0 7%Istanbul 413.8 442.1 7%Ankara 44.6 48.1 8%
(2013, €m) Revenues EBITDAEBITDA
Margin (%) Net DebtAirports 658.0 303.5 46% 652Istanbul 442.1 210.6 48% (1) Ankara 44.6 48.1 8%
Izmir (including TAV Ege) 56.5 60.0 6%Gazipasa 0.5 1.8 251%Tunisia 50.6 51.9 3%Georgia 30.9 35.3 14%Macedonia 17.8 18.8 6%
Services 328 6 344 9 5%
Ankara 48.1 21.4 45% 84Izmir (including TAV Ege) 60.0 27.3 46% 155Gazipasa 1.8 ‐0.1 ‐8% 16Tunisia 51.9 17.0 33% 344Georgia 35.3 21.6 61% (2)Macedonia 18.8 5.7 30% 55
Services 328.6 344.9 5%Havas 130.6 140.5 8%BTA 105.8 116.0 10%Others 92.2 88.3 ‐4%
Total 943.4 1,002.9 6%Elimination ‐96.7 ‐99.3 3%Consolidated 846 6 903 6 7%
Services 344.9 77.4 22% 222Havas 140.5 29.1 21% 58BTA 116.0 11.2 10% 2Others 88.3 37.1 42% 162
Total 1,002.9 380.8 38% 874Elimination ‐99.3 ‐0.2 0
Consolidated 846.6 903.6 7%
EBITDA (€m) 2012 2013 Chg.(%) Airports 267.4 303.5 13%Istanbul 181.1 210.6 16%Ankara 19 1 21 4 12%
Consolidated 903.6 380.6 42% 874
Number of Employees (eop) 2012 2013
Istanbul 2,640 2,724Ankara 872 921I i E 623 686 Ankara 19.1 21.4 12%
Izmir (including TAV Ege) 26.8 27.3 2%Gazipasa ‐0.9 ‐0.1 ‐85%Tunisia 21.7 17.0 ‐22%Georgia 17.5 21.6 24%Macedonia 2.2 5.7 154%
Services 65.5 77.4 18%
Izmir+Ege 623 686Tunisia 748 775Gazipaşa 19 29Georgia 794 806Macedonia 648 626HAVAŞ 3,852 3,648ATU ‐ ‐
Havas 18.3 29.1 59%BTA 10.2 11.2 10%Others 37.1 37.1 0%
Total 332.9 380.8 14%Elimination ‐5.1 ‐0.2 ‐96%Consolidated 327.8 380.6 16%
ATUBTA 2,086 2,255Holding 102 99O&M 296 307IT 197 210Security 233 270Latvia 3 3
13
Medinah(100%) ‐ ‐Akademi ‐ 11TOTAL 13,113 13,370
Dividends
Dividend History (€m)Dividend Yield (%)
Dividends Paid Net Income Payout Ratio
2.7
3.3 3,4* 124133
74%
50% 50%*50%
60%
70%
80%
100
120
140
Dividends Paid Net Income Payout Ratio
39
62 66*53
10%
20%
30%
40%
50%
20
40
60
80
2011 2012 20130%
10%
02011 2012 2013
* TRL Payout ratios are 79%, 52% and 61%, respectively.
The board of directors has decided to distribute 50% of 2013 IFRS net profit, totaling approximately €66m, which will be presented to theGeneral Assembly for approval. The board will also submit a dividend policy of 50% of the consolidated IFRS net profit to the approval of theGeneral Assembly.
Accordingly TRL 0.55 (55%) gross cash dividend per share having nominal value of TL 1 shall be distributed to our shareholders and total grosscash dividend distribution amount shall be TRL 199,008,765 for 2013.
14
* Subject to General Assembly approval
CAPEX Development & Outlook
Quarterly Capex (€m)
52
66
51
Ege Other
42
87% of total Capex was incurred in Izmir Adnan MenderesDomestic Terminal Construction
410
711
1Q13 2Q13 3Q13 4Q13
Domestic Terminal Construction
The bulk of the remainder of the capex was incurred atIstanbul and Havas
Airport ScopeTotal EPC*
(€m)EPC Cumulative
(€m)Cumulative (¹+²)
(€m)2012¹ (€m)
2013² (€m)% CompletedAirport Scope (€m) (€m) (€m) (€m) (€m)% Completed
Izmir Re‐construction of the domestic terminal 266 237 250 39 210 89 %
Medinah (33%)Re‐construction of the terminals and extension of the 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
Airports 569 624 652
Door to Door Maturity 7.6 YearsAirports 569 624 652 Istanbul 45 68 (1)Ankara 92 83 84 Izmir (including Ege) (1) 58 155 Gazipasa 17 16 16 T i i
Average Maturity 5.1 Years
Average € Cost of Debt (Hedged*) 5.5 %
Tunisia 351 345 344 Georgia 8 (4) (2)Macedonia 58 57 55
Services 246 251 222 HAVAS 68 64 58
Net Debt/EBITDA 2.3x
*91% of all loans have fixed rates.
BTA (1) 0 2 Others 179 187 162
Total 816 874 874
Gross Debt Maturity Profile (€m)Net Debt to Cash Flow (€m)
‐58 3
296‐187
4
816 874
281
161217
159112
417
Net Debt 2012
Change in Cash
Change in Restricted
Cash
New
Borrow
ings Raised
Repayment
of Borrow
ings
Other
Net Debt 2013
16
112
2014 2015 2016 2017 2018 2019+
FX Exposure of Operations (2013)FX Exposure of Operations (2013)
Revenues (1) Opex (1)(2)
USD 22%
Other8%USD
20%
TL
Other3%
€206m
€367m
€158m€33m
€61m
EUR 19%TL
51%EUR
TL 35%
€1037m €435m€363m
€138m€724m
EUR 42%
Concession Rent Expense Gross Debt€24m
TL2%
USD1%EUR
10%
€14m€24m
€129m
€17m
€1306m
€143m €1347m
EUR97%
USD 90%
(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
Average Rate 31 Dec 31 DecEquity Profit or loss
Average Rate 31 Dec 31 Dec
2012 2013 2012 2013
EUR/TRL 2.30 2.53 2.35 2.94
USD/TRL 1.79 1.90 1.78 2.13
29 33 32 38
(€’000)Strengthening
of EURWeakening
of EURStrengthening
of EURWeakening
of EUR
31 December 2013
USD (16,039) 15,607 (14,012) 14,012
TRL ‐ ‐ (10,027) 10,027
Other ‐ ‐ (1,028) 1,028EUR/USD 1.29 1.33 1.32 1.38
EUR/GEL 2.12 2.21 2.18 2.39
EUR/MKD 61.35 61.73 61.51 61.50
EUR/TND 2.01 2.16 2.05 2.27
Other (1,028) 1,028
Total (16,039) 15,607 (25,067) 25,067
31 December 2012
USD (28,469) 18,012 (12,534) 12,534
TRL ‐ ‐ (8,956) 8,956
HedgingSubsidiaries, TAV Istanbul, TAV Esenboğa, HAVAŞ, TAV
EUR/SEK 8.71 8.65 8.61 8.94
EUR/SAR 4.82 4.99 4.95 5.16
Sensitivity Analysis
Other ‐ ‐ (1,181) 1,181
Total (28,469) 18,012 (22,671) 22,671
Subsidiaries, TAV Istanbul, TAV Esenboğa, HAVAŞ, TAVMacedonia, TAV Tunisia and TAV Ege enter into swaptransactions in order to diminish exposure to foreign currencymismatch relating to DHMI installments and interest rate riskto manage exposure to the floating interest rates relating toloans used.
The Group’s principal currency rate risk relates to changes in the value of the Euro relative toTRL and the USD. The Group manages its exposure to foreign currency risk by entering intoderivative contracts and, where possible, seeks to incur expenses with respect to eachcontract in the currency in which the contract is denominated and attempt to maintain itscash and cash equivalents in currencies consistent with its obligations.
100%, 100%, 50%, 80%, 85% and 100% of floating bank loansfor TAV Istanbul, TAV Esenboğa, HAVAŞ, TAV Macedonia, TAVTunisia and TAV Ege respectively are fixed with interest rateswaps as explained in Note 34.
The basis for the sensitivity analysis to measure foreign exchange risk is an aggregatecorporate‐level currency exposure. The aggregate foreign exchange exposure is composed ofall assets and liabilities denominated in foreign currencies, both short‐term and long‐termpurchase contracts. The analysis excludes net foreign currency investments.
A 10 percent strengthening / (weakening) of EUR against the following currencies at 31Changes in the fair value of the derivative hedging instrumentdesignated as a cash flow hedge are recognized directly inequity to the extent that the hedge is highly effective. To theextent that the hedge is ineffective, changes in fair value of theineffective are recognized in profit or loss. 18
A 10 percent strengthening / (weakening) of EUR against the following currencies at 31December 2013 and 31 December 2012 would have increased / (decreased) equity and profitor loss by the amounts shown to the left. This analysis assumes that all other variables, inparticular interest rates, remain constant.
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 financialassets as at 31 December 2013 (Note 26 in IFRS Report, derivatives are not taken into consideration, since they affect other comprehensive income,
t P&L) St th i f EUR i t USD d TRL ill i i th fi i l t i IFRS fi i l d i FX lnot 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 financialassets (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) onthe 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 assets24.9% = ‐ 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 twocurrencies, which are actually the only major currencies affecting TAV’s FX gain/losses.
2013 (€ ‘000) USD TRL TOTAL2013 (€ ‘000) USD TRL TOTALNet Exposure 129,695 100,272Less: Derivatives (10,424) ‐Net Exposure affecting PL 140,119 100,272
St th i f EUR i t F i C i 4 3% 24 9%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
Growth in Revenues
10 to 12 percent
9 to 11 percentGrowth in Revenues
Growth in EBITDA
9 to 11 percent
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 p g
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)p (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)Finance expenses (94.3) (120.2)Profit before tax 164.0 188.0 Income tax expense (31.7) (55.3)Profit for the periodAttributable to: Owners of the Company 129.2 132.9 Non controlling interest 2 9 (0 2)Non‐controlling interest 2.9 (0.2)Profit for the period 132.2 132.7
* Restated
21
Balance SheetBalance Sheet
€m 2012* 2013 ∆%
ASSETSProperty and equipment 158 157 ‐1%Intangible assets 23 20 ‐14%
760 930 22%
€m 2012* 2013 ∆%
EQUITYShare capital 162 162 0%Share premium 220 220 0%L l 55 78 43%Airport operation rights 760 930 22%
Other investments 0 0 nmGoodwill 136 136 0%Prepaid concession expenses 57 56 ‐3%Trade receivables 76 58 ‐23%Other non‐current assets 0 2 281%Deferred tax assets 100 72 27%
Legal reserves 55 78 43%Other reserves (18) (18) 0%Revaluation surplus 1 1 ‐26%Purchase of shares of entities under common control 40 40 0%Cash flow hedge reserve (96) (69) ‐28%Translation reserves (3) (16) 391%Deferred tax assets 100 72 ‐27%
Equity Accounted Investees 80 92 15%Total non‐current assets 1,394 1,523 9%
Inventories 7 8 8%Prepaid concession expenses 138 138 0%
Translation reserves ( ) ( )Retained earnings 143 194 36%Total equity attributable to equity holders of the Company 505 594 18%Non‐controlling interest 32 32 0%Total Equity 538 626 16%
LIABILITIESPrepaid concession expenses %Trade receivables 81 74 ‐9%Due from related parties 52 15 ‐72%Derivative financial instruments 0 1 523%Other receivables and current assets 21 24 15%Cash and cash equivalents 40 98 148%Restricted bank balances 385 382 ‐1%
LIABILITIESLoans and borrowings 1,025 1,068 4%Reserve for employee severance indemnity 14 12 ‐18%Due to related parties 13 10 ‐20%Derivative financial instruments 166 123 ‐26%Deferred income 30 24 ‐20%Other payables 11 11 0%
Total current assets 723 739 2%
TOTAL ASSETS 2,118 2,262 7%
Other payables 11 11 0%Deferred tax liabilities 3 4 38%Trade payables (0) 0 nmTotal non‐current liabilities 1,262 1,251 1%
Bank overdraft 1 2 12%Loans and borrowings 213 283 33%
* Restated
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%
22* Restated
Cash Flow Statement
€m 2012* 2013 ∆%
CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period 132 133 0%Adjustments for:
€m 2012* 2013 ∆%
CASH FLOWS FROM INVESTING ACTIVITIESInterest received 14 11 ‐21%Proceeds from sale of property, equipment and j
Amortisation of airport operation right 40 40 ‐1%Depreciation of property and equipment 22 24 11%Amortisation of intangible assets 4 4 3%Concession and rent expenses 136 143 6%Provision for employee severance indemnity 3 5 106%Provision for doubtful receivables 1 1 ‐15%Discount on receivables and payables net 0 0 Nm
p p y q pintangible assets 2 2 ‐3%Acquisition of property and equipment ‐29 ‐31 8%Acquisition of non‐controlling interest ‐80 0 nmAdditions to airport operation right ‐39 ‐202 417%Acquisition of intangible assets ‐2 ‐1 ‐21%
Net cash (used in) / provided from investing activities ‐133 ‐220 66%CASH FLOWS FROM FINANCING ACTIVITIESDiscount on receivables and payables, net 0 0 Nm
Gain on sale of property and equipment 0 ‐1 98%Provision set for unused vacation 2 0 ‐82%Interest income ‐15 ‐15 nmInterest expense on financial liabilities 85 81 nmReversal of insurance income 3 0 NmTax expense 32 55 75%U i di f di t i i bl 15 17 16%
CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowings 195 296 52%Repayment of borrowings ‐163 ‐187 15%Change in restricted bank balances ‐293 ‐295 1%Non‐controlling interest change ‐1 ‐4 187%Dividends paid ‐39 ‐59 49%Change in finance lease liabilities ‐1 1 Nm
Unwinding of discount on concession receivable ‐15 ‐17 16%Share of profit of equity‐accounted investees, net of tax ‐27 ‐34 25%Unrealised foreign exchange differences on statement of financial position items 4 ‐5 nm
Cash flows from operating activities 407 416 2%Change in current trade receivables ‐13 8 Nmh d bl
Net cash used in financing activities ‐302 ‐248 ‐18%nm
NET INCREASE IN CASH AND CASH EQUIVALENTS ‐18 58 nmCASH AND CASH EQUIVALENTS AT 1 JANUARY 56 38 ‐32%CASH AND CASH EQUIVALENTS AT 31 DECEMBER 38 96 153%
Change in non‐current trade receivables 34 35 4%Change in inventories ‐1 ‐1 NmChange in due from related parties ‐41 38 NmChange 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 NmAdditions 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%Retirement benefits paid 2 5 102%Dividends from equity‐accounted investees 19 17 ‐12%
Net cash provided from operating activities 417 526 26%
23* Restated
IFRIC 12 & Our Adjusted Financials PolicyIFRIC 12 & Our Adjusted Financials Policy
Introduction to IFRIC 12 IFRIC 12 booking model
DebitCredit
1. During Construction
BS Debt
BS Cash
BS Construction in progressPL Construction Expense Construction Income
IFRIC 12‐ is an accounting application treating BOT assets with special provisionsfor guaranteed income. Ankara Esenboga Airport and Izmir Adnan MenderesAirport International Terminal, with their guaranteed passenger fee structures,fall under the scope.
The capex we incur on our BOT assets, is routinely booked as “airport operationright” in the balance sheet However when there are guaranteed passenger fees
2. Completion of Construction
BS Construction in progress
BS(NPV of) Passenger Revenue Receivable(Trade Receivables)
BS Airport Operation Right *
right in the balance sheet. However when there are guaranteed passenger feesin question, these fees are discounted to their NPV and subtracted from the“airport operation right” of the BOT in question. The remaining capex amountgets booked as “airport operation right” and the NPV of guaranteed passengerfees gets booked as “trade receivables.”
When the guaranteed passenger fees become earned during the course ofoperations these are credited from the balance sheet and the difference between
3. Operations During Year
PL Aviation Income for the Current Year **
BS Cash **
4. Year Close
PL Aviation Income for the Current Year ***
operations, these are credited from the balance sheet and the difference betweendiscounted (NPV of) guaranteed passenger fees and the actual fees as they areearned are booked as finance income.
Due to the application of IFRIC 12, guaranteed passenger fees stop being P&Litems and get treated as Balance Sheet/Cash Flow items, while at the same time,part of these fees gets shown as finance income. This unduely decreases aviationincome and increases finance income and distorts our P&L To adjust for the
PL
Finance Income(Difference between discounted receivables and the actual receivables)
BS Passenger Revenue Receivable****
PL Amortisation of Airport Operation Right
BS Accumulated Amortisation of Airport Operation Right* AOR C i i (NPV f ) P R R i bl
income and increases finance income and distorts our P&L. To adjust for thedistortion we add back guaranteed passenger fees while reporting our adjustedrevenues.
On the other hand the capex incurred during the construction phase isimmediately transferred to P&L with an offsetting construction income assignedto it. This income may or may not carry a mark‐up on it. Since this method ofbooking also distorts both the P&L and the Balance Sheet we adjust our financials
Guaranteed Pax Structure 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023International Departing Pax (m) 0.16 0.75 0.79 0.83 0.87 0.91 0.96 1.01 1.06 1.11 1.16 1.22 1.28 1.35 1.41 1.49 1.56 0.64
* AOR = Construction in progress‐ (NPV of ) Passenger Revenue Receivable** TR‐GAAP***IFRS (IFRIC 12 application)****Discounted guaranteed passenger revenues for that period
booking also distorts both the P&L and the Balance Sheet we adjust our financialsto disregard the effects of both “construction expense” and “constructionincome.”
Ankara International Departing Pax (m) 0.16 0.75 0.79 0.83 0.87 0.91 0.96 1.01 1.06 1.11 1.16 1.22 1.28 1.35 1.41 1.49 1.56 0.64Guaranteed Pax Income (€m) 2.3 11.3 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 9.6Domestic Departing Pax (m) 0.13 0.60 0.63 0.66 0.70 0.73 0.77 0.80 0.84 0.89 0.93 0.98 1.03 1.08 1.13 1.19 1.25 0.51Guaranteed Pax Income (€m) 0.4 1.8 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
İzmir International Departing Pax (m) 0.25 1.03 1.06 1.09 1.13 1.16 1.19 1.23 1.27 0.03
Guaranteed Pax Income (€m) 3.7 15.5 15.9 16.4 16.9 17.4 17.9 18.4 19.0 0.5 24
Adjusted Financials Adjusted Financials ‐‐ IFRS 11IFRS 11
Effects of IFRS 11 Financials Adjusted for IFRS 11
However, to enable the capital markets participants asmooth transition process into the new standard, TAVAirports will provide a summary of consolidated P&L itemsadjusted to reverse the effects of IFRS 11 for 2013.
According to the IFRS 11 standard, joint ventures cannot beconsolidated “proportionately” starting with 2013 first setof financials. These types of entities have to be consolidatedusing the “equity pick‐up” method. j
Shares of profit of equity accounted investees areclassified in the consolidated operating profit of theHolding company, but these sums are not included in theconsolidated revenues.
In the case of TAV Airports, this standard implies thatpreviously “proportionately” consolidated entities such asATÜ, TGS, TIBAH Development (Medinah) and BTA Marine(IDO) have to be consolidated using the “equity pick‐ up”method.
In the IFRS report, these entities have been consolidated inaccordance with the IFRS 11 standard, recording the “netincome/(loss)” contributions of these entities as a source of
i fi
Pl b i d d th t ill di ti ti lid t d fi i l dj t d f
operating profit.
Please be reminded that we will discontinue reporting consolidated financials adjusted forIFRS 11 with 1Q14 financials.
25
Reconciliation of 2013 Adjusted Financials* to IFRS
IFRIC 12
IFRIC 12 Adjustments
Revenue (€m) EBITDA (€m)
10028 11 0
‐11612 4 1
‐34Adj. IFRS 11 Adjustments
IFRS 11 Adjustments
1,078
‐21036
277
345
36
33 ‐1
1,205 397
IFRS IFRIC 12 Construction
Income
IFRIC 12Guaranteed
Pax
ATU(50%
)
Havas
Medinah
BTA
Others
Elimination
IFRS 11 &
IFRIC 12 adj.
IFRS IFRIC 12Guaranteed
Pax
ATU(50%
)
Havas
Medinah
BTA
Others
Elimination
IFRS 11 &
IFRIC 12 adj.
Net Debt (€m) Share of Profit of Equity‐accounted investees (€m)
1465 2 0
3.70 6
‐0.2
TIBAH BTA Havas ATU AJEZagreb
IFRS 11 Adjustments8741,022
0.6
7.3
26*IFRS 11 and IFRIC 12 adjusted
IFRS
Medinah
ATU
(50%)
Havas
BTA
IFRS 11 adj.
22.2
Selected Financials by Assets (IFRS 11 and IFRIC 12 adjusted) and employee #’s
(2013, €m) Revenues EBITDAEBITDA
Margin (%) Net DebtAirports 686.4 307.8 45% 798Istanbul 442.1 210.6 48% ‐1
Revenue (€m) 2012 2013 Chg.(%)
Airports 631.3 686.4 9%Istanbul 413.8 442.1 7%Ankara 44.6 48.1 8%
Ankara 48.1 21.4 45% 84Izmir (including TAV Ege) 60.0 27.3 46% 155Gazipasa 1.8 ‐0.1 ‐8% 16Tunisia 51.9 17.0 33% 344Georgia 35.3 21.6 61% ‐2Macedonia 18.8 5.7 30% 55
Izmir (including TAV Ege) 56.5 60.0 6%Gazipasa 0.5 1.8 251%Tunisia 50.6 51.9 3%Georgia 30.9 35.3 14%Macedonia 17.8 18.8 6%Medinah 16.5 28.4 72%
Medinah (33%) 28.4 4.4 15% 146Services 733.5 89.9 12% 224ATU (50%) 277.1 32.9 12% 5Havas (incl. TGS) 240.9 40.9 17% 55BTA (incl. IDO) 127.2 12.5 10% 2Others 88.4 3.5 4% 162
T l 9 8 39 28% 022
Services 673.5 733.5 9%ATU (50%) 255.1 277.1 9%Havas (incl. TGS) 210.9 240.9 14%BTA (incl. IDO) 115.4 127.2 10%Others 92.2 88.4 ‐4%
Total 1,304.8 1,419.8 9%
EBITDA (€m) 2012 2013 Chg.(%)
Airports 270.5 307.8 14%I t b l 181 1 210 6 16%
Total 1,419.8 397.7 28% 1,022Elimination ‐215.2 ‐1.1 0Consolidated 1,204.7 396.6 33% 1,022
Elimination ‐205.4 ‐215.2 5%Consolidated 1,099.4 1,204.7 10%
Number of Employees (eop) 2012 2013Istanbul 2,640 2,724
Istanbul 181.1 210.6 16%Ankara 19.1 21.4 12%Izmir (including TAV Ege) 26.8 27.3 2%Gazipasa ‐0.9 ‐0.1 ‐85%Tunisia 21.7 17.0 ‐22%Georgia 17.5 21.6 24%
Ankara 872 921Izmir+Ege 623 686Tunisia 748 775Gazipaşa 19 29Georgia 794 806Macedonia 648 626 Georgia 17.5 21.6 24%
Macedonia 2.2 5.7 154%Medinah 3.1 4.4 42%
Services 73.6 89.9 22%ATU (50%) 28.5 32.9 15%Havas (incl. TGS) 23.2 40.9 76%
HAVAŞ 11,082 11,670ATU 1,551 1,376BTA 2,642 2,894Holding 102 99O&M 296 307IT 197 210
BTA (incl. IDO) 11.5 12.5 9%Others 10.4 3.5 ‐66%
Total 344.1 397.7 16%Elimination ‐5.3 ‐1.1 ‐78%Consolidated 338.8 396.6 17% 27
Security 233 270Latvia 3 3Medinah(100%) 254 291Academy ‐ 11TOTAL 22,704 23,698
Service Companies KPIs
ATU Revenues (€m) Duty Free Spend per Pax (€)
Q1 Q2 Q3 Q4 Istanbul TAV
7274
4756
6869
16.0
17.1
15.716.3
16.6 16.516.0
29 33 41 50 6138 42 53
65 7341 4757
7237
47
TAV F&B Spend per Pax (€)
2009 2010 2011 2012 2013
FY12
# of Flights Served (‘000)
15%
2007 2008 2009 2010 2011 2012 2013
363
252
426FY12
FY13
19%
1.8
2.12.0
1.6
1.3 1.3 1.3
117
203
43
124
252
49
5%
13%
28Source: DHMI, TAV
43 49
HAVAŞ TGS HVŞ E HAVAŞ + TGS + HVŞ E
HAVAŞ EUROPE HAVAŞ + TGS + HAVAŞ EUROPE
2007 2008 2009 2010 2011 2012 2013
Timeline
Q1 Q1
2011 2012Q1
2013
• Tunisian civil unrest started• TAV Latvia took over the duty free operations in Riga International Airport• Increased shareholding in TAV Security from 67% to 100%
• Izmir domestic operations were taken over by TAV Ege on January 2012. • HAVAS had to suspend bus services in Istanbul temporarily as of 14.01.2012 due to the decision of Istanbul Metropolitan Municipality.
•Compensation letter received from DHMI regarding our Company’s concession rights in Istanbul Ataturk Airport•Tbilisi extension project cancelled
• Increased shareholding in TAV Urban Georgia from 66% to 76%• Increased shareholding in TAV Batumi from 60% to 76%• Adjustments incurred within the context of the tax amnesty
Q2• Transfer of 38% of TAV Airports shares to ADP has taken place in May 2012• First time cash dividend of €39m• Operations of Medinah Airport were taken over in June 2012
Q2
•The New Istanbul Airport tender was held. TAV Airports did not win the tender.•Cash dividend of €59m paid.•Havas Europe Helsinki & Stockholm stations closed.
Q2
• Adjustments incurred within the context of the tax amnesty legislation (€2.9m one‐off expense)
Q3
Operations of Medinah Airport were taken over in June 2012• The insurance claim on the trigen facility has finalized and resulted in lower than inially expected, hence insurance income accrual amounting €2.7m was reversed.•TGS added SunExpress to clients served.
Q3
p•THY aircrafts are served by TGS now instead of Havas at Bodrum and Dalaman. Havas personnel were transferred to TGS.•Gezi events took place.
Q3TAV Ai ’ i lifi d f L G di Ai• Skopje Airport construction finalized
• BTA IDO established and the multistage takeover of the catering operations in IDO ferries initiated• One‐off provision of c€5m (KTHY)• THY CIP Lounge operations at Istanbul Atatürk Airport International terminal ended
•An MoU is signed to extend the Tbilisi concession for 10 years 9 months in exchange for new runway to cost $65m (MoU cancelled in Q1 2013. No Capex)•TAV Airports agreed to acquire the remaining 35% of Havas shares for €80m.•Holding made one off Medinah acquisition expenses (€0.2m in Q1, €0.5m in Q2, €2.0m in Q3)
•TAV Airports’ consortium prequalified for LaGuardia Airport tender.
• Tunisian elections took place• Increased shareholding in Havas Europe from 50% to 67%• Izmir Adnan Menderes Airport International and domestic tender won , TAV Ege was established, €12m paid as rent advance
Q4 Q4•Transfer of acquired HavaS shares took place on October 3, 2012.•TAV Airports signed a LOI for 15% participation in the Zagreb Airport consortium composed of ADPM and BBI.•Holding made one off Medinah acquisition expenses (€0.9m in Q4 €3 7m for FY)
Q4•Zagreb airport taken over in December 2013 by consortium.• At the end of 2013, corporate taxes in Tunisia have been decreased from 30% to 25%.
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.
Losses can be carried forward for offsetting against future taxable income for up to 5 years
Losses cannot be carried back
Turkey
Corporate income tax rate of 15%
Corporate income tax rate of 25%
Georgia
Corporate income tax rate of 25%
TAV Tunisia is exempt from corporate tax for a period of 5 years starting from the concession
agreement date
Tunisia
Corporate income tax of 10%
Corporate income tax rate of 15%
Macedonia
LatviaLatvia
Corporate income tax rate of 20% for non-residentsSaudi Arabia
30
Corporate income tax rate of 20%Croatia
Corporate Governance Rating Corporate Governance Rating
The New Corporate Governance Communiqué (II‐17.1) came into effect on January 3rd, 2014 after being launched by the C it l M k t B d f T k (CMB) Th C t G P i i l d t d ith thi C i éCapital 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 ( February 17, 2013)
TAVHL ($) Relative to BIST-100
Share Price Performance2.30
2.50
2.70
7.00
7.50
8.00
8.50
1M 3M 2013 to date 2014 to date
TL 6% 18% 83% 5%
USD 7% 10% 50% 2%1.50
1.70
1.90
2.10
5 00
5.50
6.00
6.50
Relative to ISE ‐100 6% 36% 118% 8%
0.90
1.10
1.30
3.50
4.00
4.50
5.00
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2013
2014
2014
1/2/
2
1/23
/2
2/13
/2
3/6/
2
3/27
/2
4/17
/2
5/8/
2
5/29
/2
6/19
/2
7/10
/2
7/31
/2
8/21
/2
9/11
/2
10/2
/2
10/2
3/2
11/1
3/2
12/4
/2
12/2
5/2
1/15
/2
2/5/
2
Closing Price (TRL) Market Cap Av. Daily Volume Free Float* Effective Free Float*
16,15 USD 2,6b USD 7m 44% 40%
32
Source: Central Registry Agency (MKK)
Growth of the Turkish Aviation Market and TAV AirportsGrowth of the Turkish Aviation Market and TAV Airports
Domestic Int'l Total
Turkish Aviation Market (mPax)Turkish Aviation Market (mPax) Number of Aircraft in Turkey
( )
86 103118
130
150
202
240259 250
270299
332349
370CAGR (2002‐13)
14%
CAGR (2002‐12)13%
34 3445
5765 70
79
110
162
202
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
TAV Airports Passenger Traffic (mPax)TAV Airports Passenger Traffic (mPax)
4853
72
84
CAGR (2002‐13)23%
Deregulation of the domestic market in 2003
2nd largest country in Europe in terms of population: 75m (1)
In 2012 foreign visitors reached 32m (2)
9 9 1017
2330
41 4248 In 2012, foreign visitors reached 32m (2)
Limited alternative transport infrastructure
Aircraft number in Turkey expected to reach750 in 2023 (3)
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
33Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Ministry of Transport
Exceptional Growth SustainedExceptional Growth Sustained
Revenues (€m)
CAGR (2006 13)
EBITDA (€m)
CAGR (2006 13)
167212
257
339
397
627 640785
881
10991205
CAGR (2006‐13)45%
CAGR (2006‐13)17%
2977
141167
402508
627 640
2006 2007 2008 2009 2010 2011 2012 20132006 2007 2008 2009 2010 2011 2012 2013
Passenger (m) Average Number of Employees
4853
72
84
17,53519,838
22,22724,014
CAGR (2006‐13)20%
CAGR (2006‐13)17%
2330
41 4248
8,146 9,47311,289 12,194
2006 2007 2008 2009 2010 2011 2012 2013 2006 2007 2008 2009 2010 2011 2012 2013
34IFRS 11 and IFRIC 12 adjusted
Concession OverviewConcession Overview
Airport Type/Expire TAV Stake Scope 2013 Pax(mppa)
fee/pax Int'l
fee/pax Dom.
Volume Guarantee
Lease/ Concession
Fee Net Debt (1)
Lease US$15 $140m/yr +Istanbul Ataturk 100% Terminal 51,3$
€3 No $140m/yr + VAT €(1)m
(Jan. 2021) €2.5 (Transfer)
Ankara Esenboga BOT
100% Terminal 10,9 €15 €30.6m Dom. , 0.75m Int'l for 2007+%5 p.a
‐ €84m(May 2023)
Izmir A MenderesBOT+Lease
100% Terminal 10 2 €15 €3 1.0m Int’l for €29m starting from 2013 (6) €155mIzmir A.Menderes 100% Terminal 10,2 €15 €3 2006 + %3 p.a. from 2013 (6) €155m
(Dec. 2032)
Gazipasa Lease
100% Airport 0,4 €5 TL2 No $50,000+VAT(5) €16m(May 2034)
Tbilisi BOT
76% Airport 1.4 US$22 US$6 No ‐ €(1)m(Feb. 2027) ( )
Batumi BOT
76% Airport 0.2 US$12 US$7 No ‐ €(1)m(Aug. 2027)
Monastir&Enfidha BOT+Concession
67% Airport 3.4 €9 €1 No 11‐26% of
revenues from €344m(May 2047) 2010 to 2047
Skopje & Ohrid BOT+Concession
100% Airport 1,1€17.5 in
Skopje, €16.2 in Ohrid
‐ No15% of the gross annual turnover (2)
€55m(March 2030)
MedinahBTO+Concession
33% Airport 4.7 SAR 80 (3) ‐ No 54.5%(4) €146m(2037)
1) As of 31 December 20132) The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers
Zagreb BOT+Concession(April 2042) 15% Airport 2.3
€15 (7)€7(7) No
€2.0 ‐ €11.5m fixed0.5% (2016) ‐ 61% (2042) variable
‐€4 (Transfer)
p g g p g p g3) SAR 80 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years4) The concession charge will be reduced to 27.3 % for the first two years that follow the completion of the construction.5) TAV Gazipaşa shall make a yearly rent payent of US$ 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 Basis7)€10, €4, €4 before April 2014 respectively for international, domestic and transfer pax
35
Macro Outlook
Country Units Scale 2011 2012 2013 2014 2015 2016 2017 2018Estimates Start After
CroatiaU.S. dollars Billions 61,722 56,475 58,601 61,280 64,833 69,035 73,476 78,203 2012U.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 2012Persons Millions 4,402 4,402 4,402 4,402 4,402 4,402 4,402 4,402 2012
GeorgiaU.S. dollars Billions 14,435 15,830 15,953 16,622 17,806 19,462 21,293 23,310 2012U.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 2012Persons Millions 4,469 4,498 4,484 4,470 4,456 4,443 4,429 4,415 2012
LatviaU.S. dollars Billions 28,480 28,380 30,380 32,454 34,914 37,491 40,199 43,053 2012U.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 2012Persons Millions 2,075 2,042 2,036 2,030 2,023 2,017 2,011 2,005 2012
MacedoniaU.S. dollars Billions 10,561 9,630 10,507 11,424 12,421 13,405 14,399 15,452 2012U.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 2011Persons Millions 2,062 2,066 2,071 2,076 2,080 2,085 2,090 2,094 2011
Saudi ArabiaU.S. dollars Billions 669,507 711,050 718,472 746,819 770,569 798,830 832,741 870,977 2012U.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 2012Persons Millions 28,370 28,994 29,632 30,254 30,859 31,477 32,106 32,748 2010
TunisiaU.S. dollars Billions 46,435 45,407 48,379 51,471 55,659 59,754 64,603 69,365 2012U.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 2012Persons Millions 10,674 10,778 10,918 11,060 11,203 11,349 11,496 11,646 2010
TurkeyU.S. dollars Billions 774,775 788,299 821,798 851,434 941,925 1,042,781 1,155,239 1,279,825 2012
36IMF, World Economic Outlook Database, October 2013
, , , , , , , , , , ,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 2012Persons Millions 73,950 74,885 76,484 77,324 78,152 78,967 79,766 80,550 2012
ADP – TAV Airports: A Global Footprint
C ti (TAV 15% ADPM 21%)FranceParis‐CDG: 62mn paxParis‐Orly: 27mn paxOwner and operator
Schiphol Group (8%)52,6mn paxIndustrial cooperation
Liège (25.6%)0.6mn tons of freightStrategic partner
Georgia (76%)Tbilisi & Batumi: 1.6mn paxConcession operator
13 Regional airportsMexico North Central (25.5%)¹
13,3mn paxOperator & Strategic partner
Croatia (TAV 15% ADPM 21%)Zagreb Airport; 2.3 mn paxConcession operator
Concession operator
Macedonia (100%)Skopje & Ohrid: 1.1mn paxConcession operator
Turkey Istanbul Ataturk: 51,3mn paxAnkara: 10,9mn paxIzmir: 10,2mn paxGazipasa: 0,3mnConcession operator
Amman – Jordan (9.5%)6,5mn paxManagement contractStrategic partner
Cambodian Airports
Conakry Airport (29%)0.3mn paxOperator
Jeddah (Hajj Terminal) –Saudi Arabia
Cambodian AirportsPhnom Penh & Siam Reap: 5,1mn paxAssistance in management
Algier Airport5 9mn pax
Mauritius (10%)2,8mn pax
Tunisia (67%)Enfidha & Monastir
Medinah (Saudi Arabia) (33%)4 7mn pax
TAV Airports
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Saudi Arabia6,8mn paxManagement contract
5,9mn paxOperator
2,8mn paxOperator Strategic partner
Enfidha & Monastir 3.4mn paxConcession operator
4,7mn paxConcession operatorADP
Source: ADP, TAV AirportsNotes: 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 AirportPassenger numbers are for FY 2013.
TAV Corporate and Shareholder Structure
(2)Airport Companies Service CompaniesService Companies
Shareholder StructureTAV Airports Holding Co.
8.1%(3)8.1%
(4)2.0%
(5)
(1)38.0%
Atatürk (100%)Atatürk (100%) ATÜ (50%) ATÜ (50%)
3.5%
(6)40.3%
Esenboğa (100%)
Adnan Menderes (100%)
BTA (67%)BTA (67%)
Havaş (100%)Havaş (100%)
40.3%
TGS (50%)TGS (50%)
Havaş Europe (67%)Havaş Europe (67%)
Gazipaşa (100%)
Medinah (33%)Shareholders
1. Aéroports De Paris*Internationally acclaimed airport operating company with global operations
2. Tepe Insaat Sanayi A.Ş. Turkish integrated conglomerate focused on infrastructure and
Tbilisi & Batumi (76%) O&M (100%)O&M (100%)
Turkish integrated conglomerate focused on infrastructure and construction
3. Akfen Holding A.Ş.Holding company operating in the infrastructure, construction, seaport, REIT and energy sector
4. Sera Yapi Endustrisi A.Ş.Focused on construction in Turkey & MENA region
Monastir & Enfidha (67%)
Skopje & Ohrid (100%)
IT (99%)IT (99%)
Security (100%)Security (100%) y g5. Other Non‐floating 6. Other Free Float
*Through Tank ÖWA Alpha GMBH
Latvia (100%)
Security (100%)Security (100%)
38Zagreb (15%)
Contact IR
Nursel İLGEN, CFA
IR TeamIR Team About TAV Airports
Nursel İLGEN, CFA Director, Head of Investor Relations [email protected] Tel :+90 212 463 3000 / 2122Fax : +90 212 465 3100
TAV Airports, the leading airport operator in Turkey, operates 13 airports: Turkey
Istanbul AtaturkAnkara EsenbogaIzmir Adnan Menderes Antalya Gazipasa
Ali Özgü CANERİInvestor Relations Managerli i@
Antalya Gazipasa Georgia
Tbilisi and Batumi Tunisia
Monastir and EnfidhaMacedonia
[email protected] :+90 212 463 3000 / 2124Fax : +90 212 465 3100
Skopje and OhridSaudi Arabia
MedinahLatvia
Riga (only commercial areas)Croatia
Besim MERİÇ Investor Relations Manager [email protected] Tel :+90 212 463 3000 / 2123
CroatiaZagreb
TAV Airports provides service in all areas of airport operations such as dutyfree, food and beverage, ground handling, IT, security and operationsservices. The Company and its subsidiaries, provided service to
i l 652 h d fli h d 84 illi i 2013 ThFax : +90 212 465 3100
IR Website ir.tav.aero e‐mail [email protected] Address TAV Airports Holding Co.
approximately 652 thousand flights and 84 million passengers in 2013. TheCompany’s shares are listed in Borsa Istanbul since February 23, 2007,under the ticker code “TAVHL”
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e mail [email protected] +90‐212‐463 3000 (x2122 – 2123 – 2124 ‐ 2125)Twitter twitter.com/irTAV Facebook facebook.com/irTAV
Istanbul Ataturk Airport International Terminal (Besides Gate A and VIP)34149 Yesilkoy, Istanbul
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 anyjurisdiction 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 basisof 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 beplaced for any purposes whatsoever on the information contained in this presentation or on its accuracy, completeness or fairness. The information in this presentation is subjectto 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 andno 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 orno 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 orfairness 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 isexpressly 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 similarmeaning, reflect the Company’s beliefs, opinions and expectations and, particularly where such statements relate to possible or assumed future financial or other performance ofthe Company, are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors, changingp y, j y y , g , g gbusiness or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcomeand 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 disclaimany obligation or undertaking to disseminate any updates or revisions to any forward‐looking statements contained herein to reflect any change in the Company’s expectationswith 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 futureperformance. As a result, you are cautioned not to place reliance on such forward‐looking statements.
Information in this presentation was prepared as of February 18 , 2014
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