Management Presentation · and 2017 Well-positioned to benefit from growth Attractive market with strong growth prospects Leading airport operator with diversified portfolio & integrated

Management Presentation February 2018

Investment Highlights

2

Turkey is the fastest growing aviation market in Europe

Diversified, balanced portfolio with leading market positions

Strong momentum with EBITDA posting 28% CAGR between 2006 and 2017

Well-positioned to benefit from further organic and inorganic growth

Attractive market with strong growth prospects

Leading airport operator with diversified portfolio

& integrated structure

Strong financial performance and cash

flow generation “Platform play”

Passenger growth of 12% p.a. during 2002-2017

Projected passenger growth of 10% p.a. between 2017-2023(1)

Aggressive capacity expansion plans of major airlines in Turkey(2)

Access to fast growing MENA region

#1 airport terminal operator in Turkey

14* airports operated in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia, Croatia and Latvia

80 airports around the world have a TAV subsidiary functioning in them

Strong vertically integrated value chain

As of February 2018

* TAV will add 3 more airports in Saudi Arabia, bringing airports operated to 17.

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

Hard currency based cash flow & visible earnings

50% dividend payout policy

TAV will receive compensation for all loss of profit in case of new Istanbul airport opening before 2021

Central and Eastern Europe, Africa, Middle East, South East Asia and Cuba

Inorganic growth of service companies

(1) Source: Turkey’s Ministry of Transport (2) THY and Pegasus web site

Exceptional Growth

3

Revenue (€m)

402 508 627 640 785 881 1099 1205 1092

847 904

983 1079 1,104 1143

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pre-IFRS11

Post-IFRS11

EBITDAR (€m)

170 189 267 311 342 387 483 555 597

463 524

569 621 611

683

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pre-IFRS11

Post-IFRS11

23 30

41 42 48

53

72

84 95

102 105 115

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-71

-38

4

51 50 53

129 133

218 210

127

175

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Passenger (m) Net Profit (€m)

2006 2007

26 51

120

1

5

234 31 44

1

206 222 242

2016 Restated

2016 Restated

TAV Corporate and Shareholder Structure

4

26 51

120

1

234 31 44

1

242 247 252

9

5.06%

1.29%

3.20%

44.33%

46.12%

Shareholder Structure (as of February 2018)

Shareholders

TAV Airports Holding Co.

1

2

3

4

5

*Through Tank oWA Alpha GMBH

1. Groupe ADP* Internationally acclaimed airport operating company with global operations

2. Tepe Insaat Sanayi A.S. Turkish integrated conglomerate focused on infrastructure and construction

3. Sera Yapi Endustrisi A.S. Focused on construction in Turkey & MENA region

4. Other Non-floating

5. Other Free Float

Airport Companies Service Companies

ATU (50%)

BTA (100%)

OS (100%)

TAV Technologies (100%)

Security (100%)

Academy (100%)

Havas (100%)

TGS (50%)

Havas Latvia (100%)

Ataturk (100%)

Esenboga (100%)

Adnan Menderes (100%)

Gazipasa Alanya (100%)

Milas Bodrum (100%)

Medinah (33%)

Tbilisi (80%) & Batumi (76%)

Monastir & Enfidha (67%)

Skopje & Ohrid (100%)

Latvia (100%)

Zagreb (15%)

Havas Saudi (67%)

Yanbu, Hail & Qassim (50%)

Note: Groupe ADP bought Akfen Holding’s 8.12% stake in TAV Airports as of July 7, 2017

http://www.sera.com.tr/tr_index.php

TAV Airports Business Areas

5

ATU (50%) Largest duty free operator in Turkey Partner with Unifree–owned by Heinemann, leading German travel retailer (Travel Value) Operating in Turkey, Georgia, Tunisia, Macedonia, Latvia, Oman and Medinah Operating in Houston, USA, since September 2015.

BTA (100%) Operating in Turkey, Georgia, Macedonia, Tunisia, Latvia, Saudi Arabia, Oman and Croatia Operates Istanbul Airport Hotel (128 rooms) Operates İzmir Airport Hotel (81 rooms) Total seating capacity of c. 22 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 food-court Will be operating in New Muscat Int’l Airport

HAVAS (100%) Major ground handler in Turkey with a c.70% share Operates in 31 airports in Turkey including Istanbul, Ankara, Izmir and Antalya TGS (50%) operates in Istanbul (IST&SAW), Ankara, Izmir, Antalya, Adana, Bodrum and Dalaman 100% owner of Havas Latvia, with c.66% market share 67% owner of Saudi HAVAS operating in Medina

TAV OS (100%) Commercial area allocations and lounges, travel agency services

TAV Technologies (100%) Airport IT services

TAV Security (100%) Security service provider in Istanbul, Ankara, Izmir and Gazipasa

TAV Latvia (100%) Commercial area management in Riga Airport

Airports Duty free Food and beverage Ground handling Others

Turkey 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%)

Macedonia Skopje and Ohrid Airports (100%)

Saudi-Arabia Medinah (33%) Yanbu, Hail &Qassim (50%)*

Croatia Zagreb Airport (15%)

*The airports are planned to be taken over by 1H 2018.

Source: State Airports Authority

Growth of the Turkish Aviation Market and TAV Airports

6

Foreign Visitors in Turkey

Deregulation of the domestic market in 2003

2nd largest country in Europe in terms of population: 81m (1)

In 2016, foreign visitors amounted 25m (vs. 36mn in 2015) (2)

In 2017, foreign visitors reached to 32,4m (+28%)

Passport ownership of Turkish citizens (+18) is only 8%. (3)

Only 11% of Turkish people vacationed abroad. (3)

Aircraft number in Turkey expected to reach 750 in 2023 (4)

Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Konda Research and Consultancy 2017 Turkey Report (4) Ministry of Transport

41 51 58 65 76 86 97 103 110 116 123 180

44 52 59 66

73 80

84 71 83 89

100

170

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2023e

International

Domestic223

86 104 118 130

149 166 181 174 193 205

350

State Airports Authority Turkish Aviation Market Forecast

Mn, pax

//

Foreing Visitors in Turkey (mn)

-16%

6%

16%

5% 7%

8% 12%

6%

-10% -7% -4%

18% 16%

43% 46% 46% 43%

22% 22% 31%

-6% -10% -13%

-28% -35%

-41% -37% -38%

-33% -26%

-21%

-11%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017/2016 2016/2015 2015/2014

-2% -30%

27,1 28,6 31,5 31,8

34,9 36,8 36,2

25,4

32,4

2009 2010 2011 2012 2013 2014 2015 2016 2017

+28%

Traffic Outlook

7 Source: IATA, Airbus Global Market Forecast 2017, Boeing Current Market Outlook 2017

Source: IATA, Eurocontrol, DHMI

Source: THY presentation (November 2017) Pegasus Presentation (November 2017)

1

Source: ADI

2 3 4

World Air Traffic will double in 20 years

Turkish air traffic will double in 7 years

Aggressive fleet expansion plans of

major airlines in Turkey

~7% international seat capacity growth in

2018

Eurocontrol, projects 7% CAGR for Turkey until 2020 DHMI expects 10% CAGR in Turkey until 2023 IATA expects Turkish air traffic to grow at a 4.7% CAGR in the next twenty years

Boeing projects 4.7% CAGR for world air traffic (2017-2036) Airbus projects 4.4% CAGR for for world air traffic (2017-2036) IATA expects 7.8 bn pax to travel in 2036 a near doubling of 4 bn in 2017

~7% seat capacity increase expected at Ataturk Airport international scheduled traffic in 2018

THY to expand fleet size to 369 by 2020 (from 334 in 2016) Pegasus to increase fleet to 94 by 2020 (from 82 in 2016)

Traffic Performance

Istanbul Traffic started to recover in April with low base and Turkish Airlines declared to re-utilise grounded flet. Strong O&D recovery since the second quarter.

Ankara International growth strong with new routes in Ukraine, Iraq, Afghanistan and KSA starting Q4 2016

İzmir More lines by Turkish carriers

Milas-Bodrum Domestic traffic strong, international dominated by European traffic

Gazipasa

Gradually recovering, weakness in Western European traffic

Medinah Strong growth in international and religious traffic

Tunisia 2016 1H was a strong base due to fight diversions from Libya, recovery started following lift of UK travel ban in late July

Georgia Increase in Russia, CIS, Israel and Iran traffic; new routes

Macedonia Driven by WizzAir

Zagreb Driven by new airlines, new terminal opened at the end of March

Pax Up by 10%

Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAH and MZLZ Note: DHMI figures for 2017 are tentative. (1) Both departing and arriving passengers, including transfer pax, pax numbers NOT stake adjusted (2) Commercial flights only

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January-December

Passengers (1) Jan 2017 Jan 2018 Chg 2016 2017 Chg %

Ataturk Airport 4.033.182 5.247.975 30% 60.415.470 63.727.448 5%

International 2.727.147 3.649.134 34% 41.281.937 44.277.101 7%

Domestic 1.306.035 1.598.841 22% 19.133.533 19.450.347 2%

Esenboga Airport 1.051.887 1.552.221 48% 13.044.116 15.845.878 21%

International 134.180 169.804 27% 1.496.876 1.991.979 33%

Domestic 917.707 1.382.417 51% 11.547.240 13.853.899 20%

Izmir Airport 884.482 1.075.903 22% 12.051.243 12.823.701 6%

International 89.413 106.771 19% 2.096.076 2.354.622 12%

Domestic 795.069 969.132 22% 9.955.167 10.469.079 5%

Gazipaşa Airport 24.780 33.764 36% 718.718 823.238 15%

Milas-Bodrum 0 1.855 n.m 3.221.776 3.509.347 9%

International 24.780 31.909 29% 909.734 935.849 3%

Domestic 82.967 108.866 31% 2.312.042 2.573.498 11%

Medinah 1.498 0 n.m 6.572.787 7.805.295 19%

Tunisia (Monastir&Enfidha) 81.469 108.866 34% 1.593.780 1.683.604 6%

Georgia (Tbilisi&Batumi) 607.405 720.875 19% 2.560.462 3.654.389 43%

Macedonia (Skopje&Ohrid) 42.016 43.583 4% 1.794.376 2.027.344 13%

Zagreb Airport 168.129 231.381 38% 2.766.087 3.092.047 12%

TAV TOTAL (3) 127.544 151.380 19% 104.738.815 114.992.291 10%

International 168.788 191.276 13% 58.745.737 65.220.285 11%

Domestic 7.191.180 9.357.224 30% 45.993.078 49.772.006 8%

January-December

Air Traffic Movements (2) Jan 2017 Jan 2018 Chg 2016 2017 Chg %

Ataturk Airport 31.233 36.295 16% 447.963 449.448 0% International 22.242 25.665 15% 318.355 314.713 -1% Domestic 8.991 10.630 18% 129.608 134.735 4% Esenboga Airport 7.594 10.034 32% 94.170 106.746 13% International 1.074 1.253 17% 12.694 15.237 20% Domestic 6.520 8.781 35% 81.476 91.509 12% Izmir Airport 5.897 6.583 12% 78.846 82.853 5% International 637 748 17% 15.697 16.758 7% Domestic 5.260 5.835 11% 63.149 66.095 5% Gazipaşa Airport 197 231 17% 5.338 5.662 6% Milas-Bodrum 0 11 n.m 22.832 23.260 2% International 197 220 12% 6.499 6.074 -7% Domestic 568 691 22% 16.333 17.186 5% Medinah 10 0 n.m 54.451 58.045 7% Tunisia (Monastir&Enfidha) 558 691 24% 12.631 12.011 -5% Georgia (Tbilisi&Batumi) 4.360 5.140 18% 27.788 37.908 36% Macedonia (Skopje&Ohrid) 574 437 -24% 16.883 18.130 7% Zagreb Airport 2.032 2.530 25% 40.796 41.585 2% TAV TOTAL (3) 1.179 1.393 18% 801.698 835.648 4% International 2.798 3.039 9% 476.537 491.128 3% Domestic 56.432 66.373 18% 325.161 344.520 6%

251 243 223

8

-30%

-20%

-10%

0%

10%

20%

30%

40%

2016

Jan

2016

Feb

2016

Mar

2016

Ap

r

2016

May

2016

Ju

n

2016

Ju

l

2016

Au

g

2016

Sep

2016

Oct

2016

No

v

2016

Dec

2017

Jan

2017

Feb

2017

Mar

2017

Ap

r

2017

May

2017

Ju

ne

2017

Ju

ly

2017

Au

g

2017

Sep

2017

Oct

2017

No

v

2017

Dec

2018

Jan

O&D Transfer

34%

-13% -12%

-5%

7%

-1%

3%

28% 28%

14% 19%

23% 20%

-30%

-20%

-10%

0%

10%

20%

30%

40%


18/17 change 17/16 change 16/15 change

Istanbul Int2int Transfer and O&D Pax, Yoy % Change

3,0

3,5

4,0

4,5

5,0

5,5

6,0

6,5

7,0


2014 Seat Capacity 2015 Seat Capacity2016 seat capacity 2017 Seat Capacity

International Scheduled Traffic Developments & Outlook

9

Istanbul International O&D Pax Istanbul International Seat Capacity

Istanbul Transfer Pax / International Pax

2011 30%

2012 33%

2013 38%

2014 38%

2015 40%

2016 49%

2017 47%

+7%

(m, pax)

235 242 250

8

O&D : 6%

Transfer : 21%

2008-2017 CAGR

-16%

THY started to ground aircraft 2018e: ~+7%

9%

IFRIC 12 Adjusted Financials (in m€, unless stated otherwise) FY16 (5) FY17 Chg %

Revenue (1) 1104.1 1142.7 3%

EBITDAR(2) 611.0 683.5 12%

EBITDAR margin (%) 55.3% 59.8% 4.5 ppt

EBITDA(2) 458.8 518.9 13%

EBITDA margin (%) 41.6% 45.4% 3.9 ppt

FX Gain (loss) 6.2 (20.9) nm

Deferred Tax Expense (31.6) (1.2) -96%

Net Profit(3) 127.1 174.5 37%

Capex 108 41 -62%

Net Debt 761 586 -23%

Average number of employees 15,791 16,796 6%

Number of passengers (m) 104.7 115.0 10%

- International 58.7 65.2 11%

- Domestic 46.0 49.8 8%

Duty free spend per pax (€) (4) 14.3 13.0 -10% (1) IFRIC 12 adjusted (please refer to page 25, for revenue reported by Groupe ADP)

(2) IFRIC 12 adjusted, before impairment (please refer to page 25, for EBITDA reported by Groupe ADP)

(3) Attributable to equity holders of the company

(4) Transfer numbers are tentative and subject to change

(5) Restated

FY17 Summary Financials

10

Source: TAV Airports Holding, DHMI, TAV Tunisia, TAV Macedonia, Georgian Aviation Authority, TIBAH , MZLZ

Spend per Pax

From €14.3 to €13.0, mainly due to TRY depreciation impacting Turkish passengers’ spending, as well as weakness in European passengers.

Pax -+10%

Istanbul Airport international pax +7% in FY17 with +5% in international-to-international transfer pax and +9% in international O&D O&D recovery started in Q2 Share of transfer is 47% in Istanbul (FY16: 49%)

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Revenue +3%

Revenue growth with pax recovery and strong ground handling, despite weak TRY and cease of BTA logistics third party operations 47% aero, 53% non-aero

EBITDA +13%

EBITDA growth almost in line with EBITDAR growth

FX Gain (Loss) Mostly due to depreciation of USD and TRY versus EUR

Net Profit +37%

Impacted by lower finance expenses and elimination of one-off deferred tax expense related with TAV Tunisie in 2Q 2016, despite higher minority interest; higher D&A&I mainly due to TAV Milas Bodrum; lower contribution from Medinah and FX losses due to depreciation of USD and TRY versus EUR

Net Debt -23%

Net debt decreased significantly with cash flow generation

EBITDAR +12%

EBITDAR bolstered by decline in cash opex

458,8

87,7 4,0 0,4 4,4 0,7 12,4 14,5

518,9

FY16

Vo

lum

e

F/X

Mix

Oth

er

EPU

**

Ren

t

Price

FY17

FY17 Revenue and EBITDA Bridges *

Revenue Bridges (€m) EBITDA Bridges (€m)

26 51

120

1

5

234 31 44

1

206 222 242

* IFRIC 12 adjusted, 2016 restated

251 243 223

11

** Equity Pick -up

1104

22,7

7,9 7,8

5,3 5,1 1,9 1,4 -0.1 -0.1 -0.4 -1.3 -11.8

1143

FY16

Geo

rgia

Elimin

ation

Havas

Istanb

ul

Oth

ers

Izmir

Maced

on

ia

An

kara

Gazip

asa

Bo

dru

m

Tun

isia

BTA

FY17

459

21,0

17,3 7,7 4,5 3,9 3,8 1,2 0,9 0,3 0,2 0,1 -0.7

519

FY16

Geo

rgia

Havas

Oth

ers

Izmir

An

kara

Istanb

ul

Tun

isia

Bo

dru

m

BTA

Gazip

asa

Maced

on

ia

Elimin

ation

FY17

1104.1

102,5

17,6 10,3 3,1 2,3 -97.0

1142,7

FY16

Vo

lum

e

Oth

er

Price

Mix

On

e-Offs

F/X

FY17

Ege

Ege

YoY Comparison (2016 figures restated)

54% 33%

3% 4%

48%

35%

3% 9%

5%

Istanbul Other Airports BTA

HAVAS Other Services

12

Consolidated Revenue (1) (€m) Net Profit (2) (€m)

Consolidated Revenue (%) EBITDA (%) Opex (%)

1104 1143

FY16 FY17

459 519

FY16 FY17

127

175

FY16 FY17

(1) IFRIC 12 adjusted

(2) Attributable to equity holders of the company

22%

32% 13%

8%

25%

21%

34% 13%

9%

23%

Duty-free AviationGround-handling F&BOther

33%

20% 17%

14%

9% 7% 31%

21% 15%

18%

9% 5%

Personnel Concession rentOther D&AServices rendered Catering

FY16

FY17

EBITDAR (1) (€m)

26 51

120

144 146 148

247 166 63

234 31 44

85 129 193

186 186 186

206 222 242

230 231 232

253 219 151

248 182 187

5

228 238 248

245 245 247

EBITDA (1) (€m)

611 684

FY16 FY17

Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s (FY17)

13

(€m) Revenue EBITDA EBITDA

Margin (%) Net Debt

Airports 806.9 430.6 53% 668 Istanbul 506.3 249.6 49% -76 Ankara 67.4 44.5 66% 18 Ege 68.5 44.0 64% 186 Gazipasa 4.4 1.1 25% 48 Tunisia 23.0 -2.5 nm 348 Georgia 85.5 68.1 80% -15 Macedonia 28.0 11.7 42% 43 Bodrum 24.0 14.1 59% 116.0

Services 458.0 88.7 19% -81 Havas 139.5 49.1 35% 7 BTA 158.4 13.7 9% 7 Others* 160.1 25.9 16% -95

Total 1,264.9 519.2 41% 586

Elimination -122.2 -0.4 0

Consolidated 1,142.7 518.9 45% 586

Revenue (€m) FY16* FY17 Chg.(%)

Airports 777.5 806.9 4% İstanbul 500.9 506.3 1% Ankara 67.5 67.4 0% Ege 66.5 68.5 3% Gazipasa 4.5 4.4 -1% Tunisia 24.3 23.0 -5% Georgia 62.8 85.5 36% Macedonia 26.6 28.0 5% Bodrum 24.4 24.0 -2%

Services 456.8 458.0 0% Havas 131.6 139.5 6% BTA 170.2 158.4 -7% Others 154.9 160.1 3%

Total 1,234.3 1,264.9 2% Elimination -130.1 -122.2 -6% Consolidated 1,104.1 1,142.7 3% ATU** 336.4 342.1 2% TGS** 130.2 126.7 -3% TIBAH** 59.8 70.2 17%

Number of Employees (eop) FY16* FY17

Istanbul 2,936 2,993 Ankara 928 941 Ege 878 928 Tunisia 672 778 Gazipasa 57 62 Georgia 781 876 Macedonia 675 681 Havas 3,853 4,135 BTA 2,904 3,165 Holding 105 111 O&S 700 678 Technologies 277 332 Security 774 1,070 Latvia 6 6 Bodrum 75 78 Academy 3 2

TOTAL 15,624 16,836

EBITDA (€m) FY16* FY17 Chg.(%)

Airports 395.0 430.6 9% Istanbul 245.8 249.6 2% Ankara 40.6 44.5 9% Ege 39.5 44.0 12% Gazipasa 0.9 1.1 25% Tunisia -3.7 -2.5 -32% Georgia 47.1 68.1 45% Macedonia 11.6 11.7 1% Bodrum 13.2 14.1 7%

Services 63.4 88.7 40% Havas 31.8 49.1 54% BTA 13.5 13.7 2% Others* 18.2 25.9 42%

Total 458.5 519.2 13% Elimination 0.3 -0.4 -209% Consolidated 458.8 518.9 13% ATU** 27.4 28.7 5% TGS** 11.2 15.6 40% TIBAH** 26.8 15.1 -43%

*Others EBITDA includes share of profit of equity accounted investees (equity-pick up).

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**Equity accounted investee *Others EBITDA includes share of profit of equity accounted investees (equity-pick up). * Restated

2,7 3,3 3,4 3,5

5,5

4,6

2011 2012 2013 2014 2015 2016

39 62 66

109 105

64 53

124 133

218 210

127

74%

50% 50% 50% 50% 50%

2011 2012 2013 2014 2015 2016

Dividends Paid Net Income Payout Ratio

CAPEX Development / Dividends

14

Quarterly Capex (€m)(i) 2017 Capex

Dividend Yield (%) Dividend History (€m)

€30m invested in Tbilisi runway and taxiway rehabilitation in 2016, €17m in 2017

(i) Adjusted to exclude effects of IFRIC 12 accounting change

TAV Airports’ dividend policy: 50% of the consolidated IFRS net profit.

26 51

120

1

5

206 222 242

251 243 223

2017 YTD CAPEX

€41m

23

14

0 0 0

14

8

14 13 12

14

6 6

18 16

19 20

9 6

16

11

20

13

19

10 12 12

6

1Q142Q143Q144Q141Q152Q153Q154Q151Q162Q163Q164Q161Q172Q173Q174Q17

Ege Istanbul Other

Decentralized Debt Structure - Prudently Levered

15

Net Debt (eop, €m) December 2016 September 2017 December

2017

Airports 750 773 668

İstanbul (32) 12 (76)

Ankara 48 22 18

Ege 198 200 186

Gazipasa 46 47 48

Tunisia* 339 346 348

Georgia (17) (18) (15)

Macedonia 45 46 43

Bodrum 124 118 116

Services 11 (118) (81)

HAVAS 32 12 7

BTA 7 4 7

Holding (stand alone) (35) (141) (101)

Others 6.5 7 6

Total 761 655 586

Gross Debt Maturity Profile (€m)

Door to Door Maturity 8.2 Years

Average Maturity 5.1 Years

Average € Cost of Debt (Hedged**) 4.3 %

Net Debt / 2017 FY EBITDA 1.2

** 54% of all loans have fixed rates.

-as of December 31, 2017

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** With the Istanbul refinancing the average cost of debt decreased from 4.6% in

2015 to 4.3% in 2017. The refinancing transaction had a neutral effect on the bottom line in 2016 and saved approximately €10m in 2017. ·

*Due to the trilateral negotiations in Tunisia, all financial debt has been reclassified to short term borrowings. Details can be found in IFRS financials Note 26

207 94 94 56 42

255

359*

1 Year 2 Years 3 Years 4 Years 5 Years 6+ Years

Tunisia

Non-recourse

2017 Guidance and Realization

2017 Revised Guidance

Istanbul Ataturk

Airport Int. Pax

Total TAV Airports

Pax Revenue

EBITDAR (EBITDA before concession &

rent)

CAPEX Net Profit

Notes: All financial targets have been adjusted to reverse the effects of IFRIC 12 and are compliant with IFRS 11.

Istanbul Ataturk

Airport Int. O&D Pax

Realization

Guidance is revised due to better than expected passenger recovery and updated FX assumptions.

16

4 to 6 percent

6 to 8 percent

1 to 3 percent

significant increase

~ €50m 6 to 8 percent

6 to 8 percent

7 percent

9 percent

10 percent

3 percent

12 percent

37 percent

€41m

2018 Guidance

2018 Guidance

Istanbul Ataturk

Airport Int. Pax

Total TAV Airports

Pax Revenue EBITDA CAPEX Net Profit

Istanbul Ataturk

Airport Int. O&D Pax

17

6 to 8 Percent

increase

10 to 12 Percent

increase

2 to 4 Percent

increase

double digit

increase

~ €80m 9 to 11 Percent

increase

5 to 7 Percent

increase

Under our traffic and FX assumptions

Notes: All financial targets have been adjusted to reverse the efects of IFRIC 12 and are compliant with IFRS 11; assuming Istanbul Ataturk Airport will operate for the full year in 2018.

FX Exposure of Operations (FY17)

18

10%

23%

10%

57%

Opex (1)(2)

€75m

€182m

€79m

€452m

98%

1%

Gross Debt

€1092m

4%

18%

56%

22%

Revenue (1)

€716m

€230m

€54m

€281m

96%

4%

Concession Rent Expense

€7m

€158m

€4m

€1282m

€165m

€788m

€1119m

EUR USD TRY Other

(1) Combined figures, pre-elimination IFRIC12 adjusted, includes equity-pick up (€16m) (2) Includes concession rent expenses (€165m), does not include depreciation (€141m)

€22m

Average 31 December

FX Rates FY16 FY17 2016 2017

EUR/TRY 3.34 4.12 3.71 4.52

USD/TRY 3.02 3.64 3.52 3.77

EUR/USD 1.11 1.13 1.05 1.20

EUR/GEL 2.62 2.83 2.79 3.10

EUR/MKD 61.73 61.57 61.48 61.49

EUR/TND 2.37 2.72 2.43 2.95

EUR/SAR 4.15 4.24 3.95 4.49

FX Exposure

19

Hedging

Subsidiaries, TAV Esenboga, TAV Milas Bodrum and TAV Ege enter into swap transactions in order to diminish exposure interest rate risk to manage exposure to the floating interest rates relating to loans used.

Interest payments of 100%, 100% and 90% of floating bank loans for TAV Esenboga, TAV Ege and TAV Milas Bodrum respectively are fixed with interest rate swaps. Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognized directly in equity to the extent that the hedge is highly effective. To the extent that the hedge is ineffective, changes in fair value of the ineffective are recognized in profit or loss.

Sensitivity Analysis

The Group’s principal currency rate risk relates to changes in the value of the Euro relative to TRY and the USD. The Group manages its exposure to foreign currency risk where possible by incurring expenses with respect to each contract in the currency in which the contract is denominated and attempt to maintain its cash and cash equivalents in currencies consistent with its obligations. The basis for the sensitivity analysis to measure foreign exchange risk is an aggregate corporate-level currency exposure. The aggregate foreign exchange exposure is composed of all assets and liabilities denominated in foreign currencies, both short-term and long-term purchase contracts. The analysis excludes net foreign currency investments. A 10 percent strengthening / (weakening) of EUR against the following currencies at 31 December 2017 and 31 December 2016 would have increased / (decreased) equity and profit or loss by the amounts shown above. This analysis assumes that all other variables, in particular interest rates, remain constant.

6

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8

251 243 223

Equity Profit or loss

(‘000)

Strengthening of EUR

Weakening of EUR

Strengthening of EUR

Weakening of EUR

31 December 2017

USD - - (23,331) 23,331

TRY - - (2,799) 2,799

Other - - (1,634) 1,634

Total (27,764) 27,764 31 December 2016

USD - - (16,987) 16,987

TRY - - (2,662) 2,662

Other - - (534) 534

Total - - (20,183) 20,183

ATU (50%)

20

ATU Financials (€m) Duty Free Spend per Pax (€)

16 17,1

15,7 16,3 16,6 16,5 16,0

14,4 15,3 15,4

14,1 14,8 15,8

14,7 14,5 14,9 15,0 14,8

13,3 14,3 14,3

13,0

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Istanbul TAV

Operations started in 5 Tunisian airports in Q4 2014, ramp up in 2017 (one-off income in Q4 2016).

SPP dropped in FY17, mainly due to TRY depreciation impacting Turkish passengers’ spending, as well as weakness in European passengers.

Recovery in Istanbul, Georgia very strong.

206 222 242

71,6

88,2 91,9 81,9

72,1 84,7

93,0 86,5

68,3

85,8 102,0

86,0

4,7 7,1 7,2 3,7 1,5 4,7

10,2 11,1 5,9 6,4

12,7

3,8

7%

8% 8%

5%

2%

6%

11%

13%

9%

7%

12%

8%

0%

2%

4%

6%

8%

10%

12%

14%

0

20

40

60

80

100

120

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Revenue EBITDA Margin

BTA

21

BTA Financials (€m)

37,8 42,1

47,2 39,8 39,5

44,6 48,3

37,8 32,7

40,1 47,5

38,1

2,6 4,9 5,9

0,2 1,9 4,1

6,3

0,7 1,9 2,9 7,0

1,8

7%

12% 12%

1%

5%

9%

13%

2%

6%

7%

15%

5%

0%

2%

4%

6%

8%

10%

12%

14%

16%

0,0

10,0

20,0

30,0

40,0

50,0

60,0

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17


TAV F&B Spend per Pax (€)

1,8

2,1 2

1,6

1,3 1,3 1,3 1,3 1,3 1,3 1,2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Predominantly TRY based revenue and opex Cease of third party operations of BTA Logistics during 2016 Ramp up in Latvia and Medinah in 2016 Croatia added in 2017 Q4

123

312

49

485

135

329

32

496

HAVAS TGS HVS E HAVAS + TGS +HVS E

FY16

FY17

HAVAS

22

Havas Consolidated * Financials (€m) TGS Financials (50%) (€m)

Havas Solo FX Exposure FY 2017 # of Flights Served (‘000)

* Post IFRS 11

9%

40%

51%

Revenue

3%

73%

24%

Cost

25,4

40,1

49,7

32,7 28,0

33,3 39,0

31,3 26,0

34,8

46,9

31,8

0,0

14,2

22,8

7,8 4,2 9,7

17,1

0,4 4,0

11,7

24,0

9,3

0%

20%

40%

60%

0,0

20,0

40,0

60,0

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17


25,0 28,3

41,9

35,2 32,4

36,0 39,5

22,3 25,5

32,0 36,8

32,4

2,3 3,1 8,6

4,8 3,3

4,9 5,8

-2,8

1,9 3,8 7,3

2,6

-20%

-10%

0%

10%

20%

30%

-10,0-5,00,05,0

10,015,020,025,030,035,040,045,0

1Q

15

2Q

15

3Q

15

4Q

15

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17


EUR USD TRY

26 51

120

1

5

206 222 242

IFRIC 12 & Our Adjusted Financials Policy

23

Introduction to IFRIC 12 IFRIC 12 booking model

IFRIC 12- is an accounting application treating BOT assets with special provisions for guaranteed income. Ankara Esenboga Airport and Izmir Adnan Menderes Airport 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 operation 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 “airport operation right” of the BOT in question. The remaining capex amount gets booked as “airport operation right” and the NPV of guaranteed passenger fees gets booked as “trade receivables.”

When the guaranteed passenger fees become earned during the course of 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 earned are booked as finance income.

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, 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 distortion we add back guaranteed passenger fees while reporting our adjusted revenues.

On the other hand the capex incurred during the construction phase is immediately transferred to P&L with an offsetting construction income assigned to it. This income may or may not carry a mark-up on it. Since this method of booking also distorts both the P&L and the Balance Sheet we adjust our financials to disregard the effects of both “construction expense” and “construction income.”

Debit Credit

1. During Construction

BS Debt

BS Cash

BS Construction in progress

PL Construction Expense Construction Income

2. Completion of Construction

BS Construction in progress

BS (NPV of) Passenger Revenue Receivable (Trade Receivables)

BS Airport Operation Right *

3. Operations During Year

PL Aviation Income for the Current Year **

BS Cash **

4. Year Close

PL Aviation Income for the Current Year ***

PL

Was: Finance Income Is: Other operating revenue (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 = Construction in progress-(NPV of Passenger Revenue Receivable ** TR-GAAP *** 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

An

kara

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

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

Total Guaranteed Pax Income (€m) 13.7 14.4 15.1 15.9 16.7 17.5 18.4 19.3 20.2 21.3 22.3 23.4 24.6 25.8 27.1 11.1

Discount Income (€m) 11.80 10.96 9.93 8.69 7.21 5.47 3.43 0.43

İzm

ir

International Departing Pax (m) 1.1 1.1 1.1 1.2 1.2 1.2 1.3

Guaranteed Pax Income (€m) 15.9 16.4 16.9 17.4 17.9 18.4 19.0

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

6

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8

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2016 Restated Financials

24

As Reported Restated Adjusted Revenue € mn 12M16 12M16 Difference Difference(%) Note Airports 765,7 777,5 11.8 2% Istanbul 500.9 500.9 0.0 0% Ankara 55.7 67.5 11.8 21% 1 Ege 66.5 66.5 0.0 0% Gazipasa 4.5 4.5 0.0 0% Tunisia 24.3 24.3 0.0 0% Georgia 62.8 62.8 0.0 0% Macedonia 26.6 26.6 0.0 0% Bodrum 24.4 24.4 0.0 0% Services 456.8 456.9 0.1 0% Havas 131.6 131.6 0.0 0% BTA 170.2 170.2 0.0 0% Others 154.9 155.0 0.1 0% Total 1222.5 1234.4 11.9 1% Eliminations -130.2 -130.2 0.0 0% Consolidated Revenue (*) 1092.3 1104.1 11.9 1%

Adjusted EBITDA 12M16 12M16 Difference Difference(%) Airports 382.3 395.0 12.8 3% Istanbul 244.9 245.8 1.0 0% Ankara 28.6 40.6 12.0 42% Ege 39.7 39.5 -0.2 -1% Gazipasa 0.9 0.9 0.0 1% Tunisia -3.7 -3.7 0.0 0% Georgia 47.1 47.1 0.0 0% Macedonia 11.6 11.6 0.0 0% Bodrum 13.2 13.2 0.0 0% Services 62.4 63.4 1.0 2% Havas 31.4 31.8 0.4 1% BTA 12.9 13.5 0.5 4% Others 18.1 18.2 0.1 1% Total 444.6 458.5 13.8 3% Eliminations 0.3 0.3 0.0 0% Adjusted EBITDA 445.0 458.8 13.8 3% 2

Guaranteed passenger fee revenue from Ankara 20.2 20.2 0.0 0% Discount Income from Ankara 11.8 11.8 0.0 0% 1

As Reported Restated P&L€mn 12M16 12M16 Difference Difference(%) Note Aviation income 352.7 352.7 0.0 0%

Commission from sales of duty free goods 241.5 241.5 0.0 0% Ground handling income 141.4 141.4 0.0 0% Catering services income 113.0 113.0 0.0 0% Income from car parking operations 31.9 31.9 0.0 0%

Other Operating Revenue 142.1 223.6 81.5 57% 1,3

Other operating income 69.8 0.1 -69.6 -100% 3 Total revenue 1092.3 1104.1 11.9 1% Construction revenue 31.5 31.5 0.0 0% Construction expenditure -31.5 -31.5 0.0 0% Cost of catering inventory sold -52.9 -52.9 0.0 0% Cost of services rendered -68.3 -68.3 0.0 0%

Personnel expenses -257.7 -255.7 2.0 -1% 2 Concession rent expenses -152.2 -152.2 0.0 0%

Depreciation and amortization expense -105.3 -105.3 0.0 0% Other operating expenses -133.3 -133.3 0.0 0% Equity Pick-up 17.1 17.1 0.0 0% IFRIC 12 -20.2 -20.2 0.0 0% Operating profit 339.7 353.5 13.8 4%

Finance income 15.3 15.3 0.0 0% Translation Gain 6.2 6.2 0.0 0%

Finance expenses -124.4 -138.2 -13.8 11% 1,2 Translation Loss Net finance expense -109.1 -122.9 -13.8 13% Profit / (loss) before income tax 210.3 210.3 0.0 0% Tax (expense) / benefit -90.7 -90.7 0.0 0% Current tax -59.1 -59.1 0.0 0% Deferred tax -31.6 -31.6 0.0 0% Profit / (loss) for the period 119.7 119.7 0.0 0% Minority Interest -7.5 -7.5 0.0 0%

Profit / (loss) for the period after Minority 127.1 127.1 0.0 0%

6

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8

0 0 0

çizgiler

251 243 223

1) Discount Income from collection of discounted DHMI receivables was reclassified from Net Finance Expense to Other Operating Revenue

2) Discount Expense from Employee Termination Benefits was reclassified from Personnel Expenses to Finance Expenses

3) Most Other Operating Income items were reclassified to Other Operating Revenue. Discount Income from collection of discounted DHMI receivables was reclassified from Finance Income to Other Operating Revenue (€69.8m + €11.8m = €81.7m)

EBITDA Reconciliation (FY 2017)

Reconciliation of Revenue and EBITDA & Accounting Changes

25

Revenue Reconciliation (FY 2017) The following changes were made to the financials:

Discount Income from unwinding of TAV Esenboga’s discounted receivables from DHMI (pls refer to page 23 of the presentation for IFRIC 12 booking model and discount income figures). Discount income, which is the difference between discounted receivables and the actual receivables which was previously classified to finance income is now classified to Other Operating Revenue. The impact on 2017 IFRS financials is EUR 10,96 million. Please note that 2016 financials are restated accordingly.

Items like advertising income, rent income from sublease, utility and participation income, which were reported as «Other Operating Income» items are now reclassified to «Other Operating Revenue» for full year 2017. Please note that 2016 financials are restated accordingly.

Depreciation and Amortization method for Georgia, Macedonia, Saudi Arabia and Gazipasa airports has been changed from «straight-line» to «unit of production» (i.e. passenger number projections), in line with Ege and Bodrum, following end of ramp up period and thanks to passenger volume visibility. The impact on 2017 IFRS financials is EUR 5,04 million. Please note that the accounting changes have been applied to Q3 2017 financials, but previous periods have not been restated.

Discount Expense on Employee Termination Benefits is reclassified to finance expense. 2016 financials are restated accordingly and the impact on 2017 IFRS financials is EUR 2,40 million.

Other Operating Income, which mainly consists of extra ordinary items like gain fixed asset sale or reversal of provision for doubtful receivables, for the full year of 2016 and 2017 is not reported as revenue. The impact on 2017 IFRS financials is EUR 493 thousand. Please note that 2016 financials are restated accordingly.

1138,5

+21.3 -17.1

1142,7

IFR

S R

even

ue

(re

po

rte

d b

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DP

)

An

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Gu

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Pax

Rev

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Co

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Rev

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Ad

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481,2

21,3 16,4

518,9

EBIT

DA

rep

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DP

An

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Gu

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Pax

Rev

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Equ

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Pic

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Equity Accounted Investees – IFRS 11

26

1Q15 2Q15 3Q15 4Q15 FY15 1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 4Q17 FY17

ATU (50%) Revenue 71.6 88.2 91.9 81.9 333.6 72.1 84.7 93.0 86.7 336.4 68.3 85.8 102.0 86.0 342.1

EBITDA 4.7 7.1 7.2 3.7 22.7 1.5 4.7 10.2 11.1 27.4 5.9 6.4 12.7 3.8 28.7

Net Profit 3.0 5.2 5.9 3.8 17.9 1.3 3.5 1.8 10.4 16.9 3.3 4.5 8.4 4.3 20.5

Net Debt 12.5 7.9 6.4 10.7 10.7 13.3 12.2 18.0 9.3 9.3 8.8 4.5 -1.1 -4.6 -4.6


TGS (50%) Revenue 25.0 28.3 41.9 35.2 130.4 32.4 36.0 39.5 22.3 130.2 25.5 32.0 36.8 32.4 126.7

EBITDA 2.3 3.1 8.6 4.8 18.8 3.3 4.9 5.9 -2.8 11.2 1.9 3.8 7.3 2.6 15.6

Net Profit 1.3 1.8 5.1 2.8 10.6 1.8 2.7 3.5 -3.6 4.4 0.6 2.0 5.0 1.8 9.4

Net Debt - 0.0 0.0 -5.9 -5.9 0 0.0 0.0 0.1 0.1 - 0.0 0.0 -11.4 -11.4


TIBAH (33%) Revenue 11.0 10.1 13.3 11.9 46.3 14.1 14.8 16.5 14.3 59.8 16.8 18.2 21.4 13.8 70.2

EBITDA 1.9 2.6 5.0 4.2 13.7 8.8 6.1 7.1 4.8 26.8 3.4 4.1 5.5 2.1 15.1

Net Profit 1.7 -3.5 -1.8 -3.9 -7.6 0.8 -1.3 -0.7 -2.9 -4.2 -4.5 -3.7 -0.7 -2.7 -11.6

Net Debt 315.4 311.0 311,0 328.8 328.8 317.0 322.6 315.6 316.5 316.5 311.0 300.7 300.3 283.0 283.0


BTA IDO (50%) Revenue 2.5 3.2 4.6 2.5 12.8 2.5 2.9 3.7 5.4 11.5 1.2 1.6 2.4 1.1 6.3

EBITDA 0.1 0.4 0.9 0.2 1.6 0.2 0.3 0.4 0.5 0.9 -0.2 0.1 0.1 -0.2 -0.2

Net Profit -0.1 0.2 0.7 0.1 0.9 0.1 0.2 0.2 0.2 0.3 -0.4 -0.1 0.2 -0.3 -0.6

Net Debt -0.5 -0.6 -1.2 -0.4 -0.4 0.9 0.3 -0.3 0.3 -0.4 -0.2 -0.3 -0.2 -0.1 -0.1

HAVAS* pre IFRS 11 post IFRS 11

Revenue Havas Solo + TGS (50%) Havas Solo

EBITDA Havas EBITDA + TGS (50%) EBITDA Havas EBITDA + TGS (50%) Net Profit

Net Profit Havas Net Profit + TGS (50%) Net Profit Havas Net Profit + TGS (50%) Net Profit

BTA** pre IFRS 11 post IFRS 11

Revenue BTA + BTA IDO (50%) BTA

EBITDA BTA EBITDA + BTA IDO (50%) EBITDA BTA EBITDA + BTA IDO (50%) Net Profit

Net Profit BTA Net Profit + BTA IDO (50%) Net Profit BTA Net Profit + BTA IDO (50%) Net Profit

6

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8

251 243 223

*Havas Solo defined as all companies under HAVAS consolidation – TGS **BTA defined as all companies under BTA consolidation – BTA IDO

Income Statement / Balance Sheet

27

INCOME STATEMENT (€m) FY16 FY17

Construction revenue 31.5 17.1 Total operating income 1083.9 1121.4

Aviation income 332.4 367.0 Ground handling income 138.9 152.8 Commission from sales of duty free goods 241.5 245.6 Catering services and retail income 93.2 98.7 Other operating income 277.8 257.5

Construction expenditure -31.5 -17.1 Operating expenses -767.9 -781.8

Cost of catering inventory sold -52.9 -41.4 Cost of services rendered -68.3 -71.6 Personnel expenses -255.7 -243.6 Concession rent expenses -152.2 -164.6 Depreciation and amortization expense -105.3 -141.1 Other operating expenses -133.5 -119.4

Equity pick-up 17.1 16.4 Operating profit 333.2 356.5 Finance income 15.3 12.5 Finance expenses -138.2 -123.8 Profit before tax 210.3 245.2 Income tax expense -90.7 -59.9 Profit for the period attributable to:

Owners of the Company 127.1 174.5 Non-controlling interest 7.5 -10.8 Profit for the period 119.7 185.3

EQUITY AND LIABILITIES (€m) FY16 FY17

EQUITY

Share capital 162 162

Share premium 220 220

Legal reserves 111 110

Other reserves (68) (79)

Revaluation surplus 0 0

Purchase of shares of entities under common control 40 40

Cash flow hedge reserve (59) (53)

Translation reserves (33) (48)

Retained earnings / (Accumulated losses) 435 541

Total equity attributable to equity holders of the Company 808 893

Non-controlling interest (1) (4)

Total Equity 807 889

Loans and borrowings 674 551

Reserve for employee severance indemnity 21 23

Due to related parties 0 0

Derivative financial instruments 49 36

Deferred income 36 21

Other payables 598 554

Deferred tax liabilities 15 15

Total non-current liabilities 1,394 1,201

Bank overdraft 1 0

Loans and borrowings 566 568

Trade payables 56 46

Due to related parties 3 1

Current tax liabilities 23 20

Other payables 230 252

Provisions 7 6

Deferred income 14 18

Derivative financial instruments 0 2

Total current liabilities 900 912

Total Liabilities 2,294 2,113

TOTAL EQUITY AND LIABILITIES 3,101 3,002

ASSETS (€m) FY16 FY17

Property and equipment 230 192

Intangible assets 14 12

Airport operation rights 1,694 1,618

Other investments 0 0

Goodwill 136 136

Prepaid concession expenses 9 6

Trade receivables 90 79

Other non-current assets 3 10

Deferred tax assets 37 35

Equity pick-up assets 94 88

Total non-current assets 2,308 2,175 Inventories 9 10 Prepaid concession expenses 92 72 Trade receivables 130 130 Due from related parties 20 22 Derivative financial instruments 0 0 Other receivables and current assets 61 61 Cash and cash equivalents 317 344 Restricted bank balances 164 188 Total current assets 793 827 TOTAL ASSETS 3,101 3,002

6

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8

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Cash Flow Statement

28

CASH FLOWS FROM OPERATING ACTIVITIES FY16 FY17

Profit for the period 119.7 185.3

Adjustments for:

Amortisation and impairment of airport operation right 60.1 86.0

Depreciation of property and equipment 40.7 51.1

Amortisation of intangible assets 4.5 4.1

Concession and rent expenses 152.2 164.6

Provision for employee severance indemnity 3.3 3.4

Provision for doubtful receivables 1.5 3.4

Discount on receivables and payables, net 0.0 -0.1

Gain on sale of property and equipment 0.0 0.0

Provision set for unused vacation 0.5 0.4

Interest income -9.0 -12.4

Interest expense on financial liabilities 87.1 59.3

Tax expense 90.7 59.9

Unwinding of discount on concession receivable and payable 24.3 24.0

Share of profit of equity-accounted investees, net of tax -17.1 -16.4

Unrealized foreign exchange differences on statement of financial position items -2.9 -18.5

Cash flows from operating activities 555.6 594.2

Change in current trade receivables -31.9 1.7

Change in non-current trade receivables 21.2 22.2

Change in inventories 2.3 -1.1

Change in due from related parties 14.5 -2.0

Change in restricted bank balances 246.7 -38.0

Change in other receivables and other assets -7.8 6.0

Change in trade payables 6.0 -9.7

Change in due to related parties -2.6 -2.2

Change in other payables and provisions -29.4 -75.9

Cash provided from operations 774.6 495.3

Income taxes paid -50.9 -62.1

Interest paid -42.6 -34.8

Retirement benefits paid -4.2 -4.4

Additions to prepaid concession and rent expenses -130.3 -134.1

Dividends from equity-accounted investees 24.2 18.7

Net cash provided from operating activities 570.8 278.5

CASH FLOWS FROM INVESTING ACTIVITIES FY16 FY17

Interest received 7.1 13.4

Proceeds from sale of property, equipment and intangible assets 10.0 3.7

Acquisition of property and equipment -74.8 -23.2

Additions to airport operation right -29.5 -15.6

Acquisition of non-controlling interest net of cash acquired -9.5

Acquisition of intangible assets -3.3 -1.4

Net cash used in investing activities -90.6 -32.6

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 284.3 55.3

Repayment of borrowings -514.7 -181.7

Cash inflows and outflows from derivative instruments -30.0 -12.0

Financial provision for employee benefit obligation 2.0 2.4

Dividends paid -115.7 -76.8

Change in finance lease liabilities -2.4 -4.4

Net cash used in financing activities -376.5 -217.1

NET INCREASE IN CASH AND CASH EQUIVALENTS 103.7 28.9

CASH AND CASH EQUIVALENTS AT 1 JANUARY 211.7 315.3

CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER 315.3 344.2

6

235 242 250

8

251 243 223

Airport Type/Expire TAV Stake Scope 2016 Pax (mppa)

fee/pax Int'l

fee/pax Dom.

Volume Guarantee

Yearly Lease/ Concession Fee Paid

Net Debt (1)

Istanbul Ataturk Lease

100% Terminal 63.7 US$15

€3 No $140m + VAT €12m (January 2021) €2.5 (Transfer)

Ankara Esenboga BOT

100% Terminal 15.8 €15

€2.5 (Transfer) €3

0.6m Dom. , 0.75m Int'l for 2007+5% p.a

- €22m (May 2023)

Izmir A.Menderes (Ege) BOT+Concession

100% Terminal 12.8 €15

€2.5 (Transfer) €3 No

€29m+VAT (2)

€200m

(December 2032)

Gazipasa Alanya Lease

100% Airport 0.8 €10(3) TL7.5(3) No $50,000+VAT(4) €47m (May 2034)

Milas Bodrum Concession

(December 2035) 100% Terminal 3.5 €15 €3 No

€143.4m upfront+ €28.7m+VAT (5)

€118m

Tbilisi BOT

80% Airport 3.2 US$24 US$6 No - €-12m (February 2027)

Batumi BOT

76% Airport 0.5 US$12 US$7 No - €-6m (August 2027)

Monastir&Enfidha BOT+Concession

67% Airport 1.7 €9 €1 No 11-26% of revenues

from €346m

(May 2047) 2010 to 2047

Skopje & Ohrid BOT+Concession

100% Airport 2.0 €17.5 in Skopje, €16.2 in Ohrid

- No 4% of the gross annual

turnover (6) €46m

(March 2030)

Medinah BTO+Concession

33% Airport 7.8 SAR 87 (7) - No 54.5% (8) - (2037)

Yanbu, Hail & Qassim(7,9)

BTO+Concession

50% Airport

3,6 SAR 87(7) SAR 10 No

3% of the gross annual turnover for Yanbu

3,6% of the gross annual turnover until 2026, 7,2% between 2026-2047 for

Hail&Qassim

- (2047)

Zagreb BOT+Concession

(April 2042) 15% Airport 3.1

€15

€7 No €2.0 - €11.5m fixed 0.5% (2016) - 61%

(2042) variable -

€4 (Transfer)

Concession Overview

29

1) As of 30 September 2017 2) Accrual basis: Depreciation expense of €13.5m in 2015 to €32.4m in 2032 plus finance expense of €17.8m in 2015 to €0m in 2032 3) Gazipasa tariff increased on January 1, 2015 4) TAV Gazipasa will make a yearly rent payment of US$ 50,000 + VAT plus 65% of net profit to DHMI. 5) Yearly payments start October 2015. Accrual basis: Depreciation expense of €11.1m in 2016 to €38.0m in 2032 plus finance expense of €18.8m in 2016 to €0m in 2032 6) The percentage will be tapered towards 2% as passenger numbers increase. 7) SAR 87 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years 8) The concession charge was reduced to 27.25 % for the first two years that follow the completion of the construction of the new terminal in Q2 2015 9) The airports are planned to be taken over by 1H 2018.

6

235 242 250

8

251 243 223

Airport Type/Expire TAV Stake Scope 2017 Pax (mppa)

fee/pax Int'l

fee/pax Dom.

Volume Guarantee

Yearly Lease/ Concession Fee Paid

Net Debt (1)

TAV became 100% shareholder of BTA

EUR25million impairment of Milas Bodrum (net profit impact of EUR20million, after deferred tax)

Havas Germany operations shut down

Accounting methodology changes

~EUR15m software sales revenue accrued in Q4, mainly from Abu Dhabi and Saudi projects

MoU signed to undertake exclusive negotiations with the Cuban government for Havana Airport

Q4

Timeline

30

2017 2015 2016

TRY 348 million cash dividends paid

Macedonia loan refinanced with one-off cost of ~EUR7m

Q1

TRY 247 million cash dividends paid

Adverse weather conditions in January led to flight cancellations in İstanbul

New terminal building of Zagreb Airport opened at the end of March

Q1

4% of TAV Georgia (Tbilisi) bought for USD 5.2m

Ten year duty-free concession at Houston George Bush Airport, USA won

Harsh winter conditions led to flight cancellations and unbudgeted de-icing revenue

Q1

The consortium including TAV was not selected as preferred bidder in LaGuardia tender.

New terminal building of Medinah Airport opened.

ATU operation in Oman Salalah started

Dividends paid

Q2

Gazipasa runway extension complete

Mezzanine floor opens in Ataturk Airport International Terminal

ATU started in Houston.

Q3

Milas-Bodrum Airport international terminal taken over

Gazipasa runway extension complete

Havas became 100% shareholder of Havas Europe

Q4

Istanbul loan refinanced with one-off cost of ~EUR11m (will be net income neutral by year-end)

Tunisia deferred tax asset reversal of ~EUR14m

Ataturk extension complete

Tbilisi runway and taxiway rehabilitation complete

Attack on the airport (June 28), coup attempt (July 15)

Q2

Consortium with TAV invited to exclusive negotiations for Havana Airports, Cuba

Started negotiations with Saudi Oger Ltd. to purchase half of its 33.3% shares of Tibah

Q3

Philippines regional airports tender cancelled

Saudi airports awarded (Yanbu, Qasim and Hail)

New arrival terminal building of Tbilisi Airport opened at the end of June

Q2

Change in shareholder structure

Guidance Revision for 2017

Q3

Q4

Tax Regimes

31

Corporate income tax rate of 25%


Corporate income tax rate of 20% as of 2018 (15% previously)

Corporate income tax rate of 20% for non-residents


Corporate income tax rate of 22% for 2018-2019-2020.(20% previously) %. 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


Turkey

Georgia

Tunisia

Macedonia

Latvia

Saudi Arabia

Croatia

Share Price Performance 1M 3M 2017 to Date

TRY 7% 26% 69%

USD 6% 30% 59%

Relative to BIST -100 3% 15% 13%

Share Performance (February 15, 2018)

ESG & Share Performance

32

Corporate Governance rating has increased to 96.17 (9.62 out of 10) from a rating of 95.38 (9.54 out of 10), owing to our strong emphasis on developing good corporate governance practices. The previous rating was announced on 19.08.2016.

Corporate Governance Rating Weight Grade

Shareholders 25% 95.77

Public Disclosure and Transparency 25% 97.34

Stakeholders 15% 98.82

Board of Directors 35% 94.48

Total 100% 96.17 Closing Price (TRY)

22.50 Market Cap USD 2.2bn

Avg. Daily Volume** USD 9.5m

Free Float* 44%

Effective Free Float* 44%

Foreign Ownership

~90%

* Source: Central Registry Agency (MKK) ** 2017 yearly average

85 129 193

247 166 63

TAV Airports was included in the BIST Sustainability Index on November 4, 2014.

6

235 242 250

8

251 243 223

Sustainability

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

15.

02.2

01

80

4.01

.20

18

22.

11.2

01

71

1.10

.20

17

25.

08.2

01

71

4.07

.20

17

31.

05.2

01

71

7.04

.20

17

06.

03.2

01

72

3.01

.20

17

12.

12.2

01

63

1.10

.20

16

19.

09.2

01

60

1.08

.20

16

15.

06.2

01

60

3.05

.20

16

22.

03.2

01

60

9.02

.20

16

28.

12.2

01

51

6.11

.20

15

02.

10.2

01

51

9.08

.20

15

07.

07.2

01

52

6.05

.20

15

09.

04.2

01

52

6.02

.20

15

15.

01.2

01

50

3.12

.20

14

21.

10.2

01

40

5.09

.20

14

22.

07.2

01

41

0.06

.20

14

25.

04.2

01

41

3.03

.20

14

30.

01.2

01

4

TAVHL ($)

TUNISIA

UAE

QATAR

GEORGIA

TURKEY

OMAN KENYA

SAUDI ARABIA

LATVIA

GERMANY

USA CROATIA

MACEDONIA

Global Presence with Service Companies in 19 Countries and 77 Airports

33

THAILAND

CHILE

INDONESIA

JORDAN

DENMARK

SWITZERLAND

EGYPT

Source: Groupe ADP, TAV Airports * Groupe ADP sold its 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. Since end of December 2016, Groupe ADP manages Antananarivo & Nosy Be airports in Madagascar but Group traffic figures do not include yet in 2016 their traffic figures. ** Passenger numbers are for FY 2017, excluding passenger numbers for Schiphol, Riga Airports and Yanbu, Hail and Qassim Airports in Saudi Arabia. This calculation takes into account Paris Aéroport and TAV Airports’ figures at 100% for 2017 and, for minority stakes, it takes into account the trafffic weighted by stake of ownership. 34

A Platform of 23 airports* and 228 million passengers**

FRANCE Paris-CDG: 69.5mn pax Paris-Orly: 32.0mn pax Owner and operator

Schiphol Group (8%) 68.5mn pax Industrial cooperation

Liège (25.6%) Strategic partner Croatia (TAV 15% ADPM

21%) Zagreb Airport:3.1mn pax Concession operator

Turkey Istanbul Ataturk: 63.7mn pax Ankara: 15.8mn pax Izmir: 12.8mn pax Mlas-Bodrum: 3.5mn pax Gazipasa: 0.8mn Concession operator

Amman – Jordan (9.5%) 7.9 mn pax Management contract Strategic partner

Medinah (Saudi Arabia) (33%) 7.8mn pax

Concession operator

Tunisia (67%) Enfidha & Monastir 1.7mn pax Concession operator

Jeddah (Hajj Terminal) – Saudi Arabia

8.0mn pax Management contract

Mauritius (10%) 3.7mn pax Operator Strategic partner

Conakry Airport (29%) 0.5mn pax Operator

Santiago de Chile (45%) 21.4mn pax Concession

ADP TAV Airports

Groupe ADP – TAV Airports: A Global Footprint

Macedonia (100%) Skopje & Ohrid: 2.0 mn pax

Concession operator

Georgia Tbilisi(80%) & Batumi(76%): 3.7 mn pax Concession operator

Madagascar (35%) (Since December 2016)

1.1mn pax Concession Operator

Major Airports in Turkey

35

Istanbul / Ataturk Airport Tender Date: 2005 Type: Lease Expire: 2021

63,7 m Intl: 44,3 m

Dom: 19,5 m

Ankara / Esenboga Airport Tender Date: 2006 Type: BOT Expire: 2023

15,8 m Intl: 2,0 m

Dom: 13,9 m

İzmir / A.Menderes Airport Tender Date: 2011* Type: Lease Expire: 2032

12,8 m Intl: 2,4 m

Dom: 10,5 m

Milas-Bodrum Airport Tender Date: 2014* Type: Lease Expire: October 22,2035

3,5 m Intl: 0,9 m

Dom: 2,6 m Mugla / Dalaman Airport

Tender Date: 2014 Type: BOT+Lease Expire: 2039

3,7 m Intl: 2,3 m

Dom: 1,4 m

Antalya Airport Tender Date: 2007 Type: Lease Expire: 2024

25,9 m Intl: 18,5 m Dom: 7,5 m

Gaziantep Airport 2,9 m Intl: 0,3 m

Dom: 2,6 m

Adana Airport 5,6 m Intl: 0,6 m

Dom: 5,0 m

Kapadokya Airport 0,1 m Intl: 0 m

Dom: 0,1 m

Trabzon Airport 4,2 m Intl: 0,2 m

Dom: 4,0 m

Samsun Airport 1,2 m Intl: 0,0 m

Dom: 1,1 m

GazipasaAirport Tender Date: 2007 Type: Lease Expire: 2034

0,8 m Intl: 0,3 m

Dom: 0,5 m

* International terminal to be taken over October 2015 ** Pax numbers are for 2017.

Operated by TAV Airports

Not privatized

Operated by others

230 231 232

İstanbul / Sabiha Gokcen Airport

Tender Date: 2007 Type: BOT Expire: 2032

31,4 m Intl:10,3 m

Dom: 21,1 m

New Airport

Sabiha Gokcen

Ataturk Int.

Airport

3rd Bridge

Macro Outlook

36

Country Subject Descriptor Units Scale 2015 2016 2017 2018 2019 2020 2021 2022 Gross domestic product, constant prices % Ch. 2.2 3.0 2.9 2.7 2.5 2.3 2.2 2.1

Croatia

Gross domestic product, current prices USD Billions 48.9 50.7 53.5 57.9 60.4 62.9 65.1 68.9 Gross domestic product per capita, current prices USD Thousands 11.6 12.2 12.9 14.0 14.6 15.2 15.8 16.7 Inflation, average consumer prices % Ch. -0.5 -1.1 1.1 1.2 1.5 1.7 1.8 1.9 Population Persons Millions 4.2 4.2 4.2 4.1 4.1 4.1 4.1 4.1 Gross domestic product, constant prices % Ch. 2.9 2.7 4.0 4.2 4.5 5.0 5.5 5.5

Georgia

Gross domestic product, current prices USD Billions 14.0 14.3 15.2 16.7 18.0 19.5 21.2 23.0 Gross domestic product per capita, current prices USD Thousands 3.8 3.9 4.1 4.5 4.9 5.3 5.7 6.3 Inflation, average consumer prices % Ch. 4.0 2.1 6.0 3.0 3.2 3.0 3.0 3.0 Population Persons Millions 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 Gross domestic product, constant prices % Ch. 2.7 2.0 3.8 3.9 3.5 3.2 3.1 3.0

Latvia


FYR Macedonia

Gross domestic product, current prices USD Billions 10.1 10.9 11.4 12.3 13.0 13.8 14.5 15.4 Gross domestic product per capita, current prices USD Thousands 4.9 5.3 5.5 5.9 6.3 6.6 7.0 7.4 Inflation, average consumer prices % Ch. -0.3 -0.2 0.3 2.6 1.9 2.0 2.0 2.0 Population Persons Millions 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 Gross domestic product, constant prices % Ch. 4.1 1.7 0.1 1.1 1.6 1.8 2.0 2.0

Saudi Arabia

Gross domestic product, current prices USD Billions 654.3 646.4 678.5 708.5 733.1 761.0 793.3 813.7 Gross domestic product per capita, current prices USD Thousands 21.1 20.4 21.0 21.5 21.8 22.1 22.6 22.8 Inflation, average consumer prices % Ch. 2.2 3.5 -0.2 5.0 2.0 2.2 2.1 2.0 Population Persons Millions 31.0 31.7 32.4 33.0 33.7 34.4 35.0 35.7 Gross domestic product, constant prices % Ch. 1.1 1.0 2.3 3.0 3.5 4.1 4.3 4.3

Tunisia


Turkey

Gross domestic product, current prices USD Billions 859.4 863.4 841.2 905.7 962.2 1018.9 1074.9 1132.2 Gross domestic product per capita, current prices USD Thousands 10.9 10.8 10.4 11.1 11.7 12.3 12.8 13.4 Inflation, average consumer prices % Ch. 7.7 7.8 10.9 9.3 8.8 7.9 7.5 7.5 Population Persons Millions 78.7 79.8 80.6 81.4 82.2 83.0 83.7 84.4

IMF, World Economic Outlook Database, October 2017

228 238 248

10

242 247 252

9

Contact IR

37

IR Team About TAV Airports

Nursel İLGEN, CFA Director, Head of Investor Relations [email protected] Tel :+90 212 463 3000 / 2122 Fax : +90 212 465 3100

Besim MERİC Investor Relations Coordinator [email protected] Tel :+90 212 463 3000 / 2123 Fax : +90 212 465 3100

Ali Ozgu CANERİ Investor Relations Coordinator [email protected] Tel :+90 212 463 3000 / 2124 Fax : +90 212 465 3100

IR Website http://ir.tav.aero

e-mail [email protected]

Phone +90-212-463 3000 (x2122 – 2123 – 2124 - 2125)

Twitter twitter.com/irTAV

Facebook facebook.com/irTAV

Address TAV Airports Holding Co. Istanbul Ataturk Airport International Terminal (Besides Gate A and VIP) 34149 Yesilkoy, Istanbul

Turkey

Georgia

Tunisia

Macedonia

Saudi Arabia

Latvia

Croatia

Istanbul Ataturk Ankara Esenboga Izmir Adnan Menderes

Gazipasa Alanya Milas Bodrum

Tbilisi and Batumi

Monastir and Enfidha

Skopje and Ohrid

Medinah Yanbu, Hail & Qassim*

Riga (only commercial areas)

Zagreb

TAV Airports through its affiliates and subsidiaries, in auxiliary airport services including duty free, food and beverage, ground handling services, IT, security and operation services. As part of these diversified services TAV Airports also operates the duty-free, food and beverage and other commercial areas at Riga Airport in Latvia. In 2017, the company provided services for 836K flights and more than 115 million passengers. The Company’s shares are listed in Borsa Istanbul since February 23, 2007, under the ticker code “TAVHL”

* The airports are planned to be taken over by year-end

mailto:[email protected]

http://ir.tav.aero/

mailto:[email protected]

https://itunes.apple.com/tr/app/tav-ir/id1144512307

https://play.google.com/store/apps/details?id=com.tav.ir&hl=en

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.S. (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 February 21, 2018.

38

Documents

Management Presentation · and 2017 Well-positioned to benefit from growth Attractive market with strong growth prospects Leading airport operator with diversified portfolio & integrated