TAV Ai t H ldiTAV Airports HoldingManagement Presentation
Enfidha Zine El Abidine Ben Ali International Airport
0
October 2009
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 13
TAV Airports – Operations 26TAV Airports Operations 26
Conclusion 37
11
TAV Airports Structure
Project Companies
TAV Istanbul
Service Companies
ATÜ (50%)34% of total revenue in 200865% of total EBITDAR in 2008
20% of total revenue in 20085% of total EBITDAR in 2008Istanbul
(100%)
TAV Esenboga
(100%)
ATÜ (50%)
BTA (67%)
65% of total EBITDAR in 200836% of total EBITDA in 2008
4% of total revenue in 20084% of total EBITDAR in 20089% of total EBITDA in 2008
5% of total EBITDAR in 200810% of total EBITDA in 2008
8% of total revenue in 20081% of total EBITDAR in 20083% of total EBITDA in 2008
TAV Izmir (100%)
HAVAS (100%)
4% of total revenue in 20085% of total EBITDAR in 200811% of total EBITDA in 2008
5% of total revenue in 2008
16% of total revenue in 200810% of total EBITDAR in 200820% of total EBITDA in 2008
TAV Tunisie (85%)
TAV Georgia (60%)
TAV O&M (100%)
TAV IT (97%)
5% of total revenue in 200810% of total EBITDAR in 200810% of total EBITDA in 2008
1% of total revenue in 20081% of total EBITDAR in 20082% f t t l EBITDA i 2008
3% of total revenue in 2008
1% of total revenue in 2008(60%)
TAV Gazipasa (100%)
(97%)
TAV Security (67%)
2% of total EBITDA in 2008
Opened to receive flights as of July 13, 2009
1% of total revenue in 2008
2
TAV Macedonia
(100%)Effective date of concession contract is March 01, 2010.
Note: Figures before eliminations
TAV Airports Overview
Airports Duty Free Food and Beverage
Ground Handling Other
O&M, IT and SecurityTAV O&M (100%):
TurkeyIstanbul Ataturk Airport
ATÜ (50%)Largest duty free
BTA (67%)Total seating
Havaş (100%)Traffic ramp and TAV O&M (100%):
Commercial area allocationsCIP / VIP
TAV IT (97%): Airport IT services
Istanbul Ataturk Airport (100%),
Ankara Esenboğa Airport (100%),
Izmir Adnan Menderes Airport (Intl. Terminal) (100%),
Largest duty free operator in Turkey
Partner with Unifree – owned by Heinemann, leading German t l t il
Total seating capacity of 10,500 in Turkey and GeorgiaOperates Istanbul Airport Hotel (85 rooms)
Traffic, ramp and cargo handling
Major groundhandler in Turkey with a c.52%(4) share
Operates in 21airports in Turkey services
TAV Security(67%):
Security service provider in Istanbul, Ankara and Izmir
Gazipasa Airport (1)
(100%)
GeorgiaTbilisi International Airport(66%) and Batumi Airport
Tunisia
travel retailer (Travel Value)
rooms)
Bakery & pastry factory serving in Turkey
airports in Turkey including Istanbul, Ankara, Izmir and AntalyaSelected as a partner for TGS by THY
and IzmirMonastir and Enfidha Airports (2) (85%)
MacedoniaSkopje, Ohrid and Shtip Airports (3) (100%)
nues
9(5
)
€
3
€148m
Rev
en1H
09 €66m €19m€24mNotes: (1) We had signed Gazipasa Airport concession agreement on January 7, 2008 and we have not started operations yet.
(2) We started operations in Monastir Airport on January 1, 2008. Enfidha Airport is under construction (greenfield investment)(3) We are awarded the tender on September 2, 2008 and we have not started operations yet.(4) Based on number of flights for 2008(5) Revenues represent the proportional interest of these companies in TAV Airports (e.g. 50% of ATÜ revenues, 60% of TAV Georgia for whole period) (before eliminations)
€52m
Ownership Structure (As of September 30, 2009)
Founding shareholders
1. Tepe – Turkish integrated conglomerate focused on infrastructure and construction
2 Akfen holding company operating in the
Shareholder Structure
2. Akfen – holding company operating in the construction, tourism, aviation, insurance and energy sector
3. Sera Yapi Endustrisi – family of Dr. Sani Sener, CEO of TAV Airports
(1) 26,06%(6)
42,82%
4. Goldman Sachs International *5. Other Non-floated
F Fl (42 82%)
Other shareholders
(2)18,06%
6. Free Float (42.82%)Global Investment House (2.18%)IDB Infrastructure Fund (3.56%)Other Free Float (37.08%)
* 14,821,875 of the shares owned by Goldman Sachs that correspond to 4.08% of our issued
(4) 4,08%(3) 3,91%(5) 5,07%
and outstanding share capital have been provided by Akfen Holding A.Ş. to Goldman Sachs as collateral and the title of those shares have been transferred to Goldman Sachs for this purpose. A pledge granted by Goldman Sachs in favour of Akfen Holding A.Ş. exists on those shares. As a result, the voting rights, right of receiving dividends, pre-emption rights for participating in cash share capital increase in connection with those (except for acquiring gratis shares under any share capital increase) belong to Akfen Holding A.Ş. as if such shares had not been owned by Goldman Sachs.
4
Traffic Performance
In 9M 2009 (January-Sept. period)
Passenger:
TAV Passenger Figures (million pax)Airports 2006 2007 2008* 9M08* 9M09* %Istanbul Ataturk 21.3 23.2 28.6 21,7 22.2 2%
Int’l 12.2 13.6 17.1 12.8 13.5 6%Passenger:31. 8 million total passenger (1% growth)
13.5 million int’l passenger in
Dom. 9.1 9.6 11.5 8.8 8.6 -2%Ankara Esenboga 4.5 5.0 5.7 4.1 4.4 7%
Int’l 1.2 1.3 1.2 0.96 0.82 -14%Dom. 3.3 3.6 4.4 3.2 3.6 13%
Izmir A.Mend. (int’l) 1.5 1.6 1.7 1.4 1.3 -4%Monastir Airport 4.2 4.2 4.2 3.5 3.1 -10%
Istanbul Ataturk Airport (6% growth)
TAV Air Traffic Movements (‘000)
pGeorgia (inc. Batumi) 0.6 0.7 0.8 0.6 0.56 -7%TAV Total 32.0 34.6 40.9 31.4 31.8 1%
Int’l 19.6 21.4 25.0 19.3 19.4 1%Dom. 12.4 13.2 15.9 12.1 12.3 2%
Air Traffic Movement:281.5 thousand ATM
Note: Since 2008 and 2009 DHMI passenger figures
Airports 2006 2007 2008 9M08 9M09 %Istanbul Ataturk 225.5 243.4 254.5 191.4 197 3%
Int’l 130.5 142.5 155.4 115.3 125.3 9%Dom. 95.0 100.9 99.1 76.1 71.7 -6%
Ankara Esenboga 47.4 50.1 51.1 38.2 37.4 -2%I t’l 12 5 13 7 12 2 9 5 7 4 22%
p g gare including transfer passengers, 2008 and 2009 passenger figures are not comparable with previous years’ passenger figures.
Int’l 12.5 13.7 12.2 9.5 7.4 -22%Dom. 34.9 36.4 38.9 28.7 30 4%
Izmir A.Mend. (int’l) 11.5 13.1 13.2 10.7 10.2 -5%Monastir Airport 35.2 34.6 33.6 27.8 25.2 -9%Georgia (inc. Batumi) 10.8 13.9 16.4 12.7 11.5 -9.2%TAV Total 330.4 355.0 368.8 281.0 281.5 0%
5
Int’l 199.3 216.0 229.2 174.9 178.2 2%Dom. 131.1 139.0 139.6 106 103.2 -3%
Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie(*) Since 2008 DHMI passenger figures are including transfer passengers, 2008 and 2009 passenger figures are
not comparable with 2007 passenger figures.
Istanbul Airport Traffic Performance
According to Turkish State AirportsAuthority (DHMI) figures (including transferpassengers), the number of passengers in 6M 2009 Pax growthinternational terminal of Istanbul AtaturkAirport increased by 6% to 13.5 million inthe 9M of 2009 (1Q: -1%, 2Q: 7%, 3Q09: 10%growth).
6M 2009 Pax growth
+1%
-5% Worldwide
-6%
-7%
8%5% 6%9%
8%
1,7
1,9
2,1mn
Atatürk Airport Int'l Pax
%13-8%
-11%
-11%-2% -2%
0%
10%5%
1,1
1,3
1,5
,
0,9Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 2009
6
Tourist Arrivals
According to Turkish Statistical Institute(TurkStat) figures, the number of visitors toTurkey from abroad increased by 0.3% in
Tourist arrivals by Country (Jan-July)
the first half of 2009 (2Q09: 2% growth).
72% of tourist arrivals via air in 2008.
16%18%
17%18%
Germany
England
Others
5,0
6,0mn Number of visitors (Turkey)
9%
5%21%
8%
5%22%
England
Netherlands
1,0
2,0
3,0
4,0
-2% -1%-4%
9% -4%
3%
31%
30%2008
2009
Other EU
CIS
0,0Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2008 2009
% %
7
Duty Free Performance
4841
58 56
TAV Airports duty free revenue
-3%
-15% 5%
10%
Duty free revenue growth in Istanbul (2009)
5%
41
€m
1Q 2Q 1Q 2Q -10%
-5%
0%Jan Feb Mar Apr May Jun Jul
-10%
14%
-10%
-2%
-6%
-1%
2008 2009 -15%
-14%
8
Aviation Industry
≈19.000 commercial aircraft
4.8 billion passengers expected to double in the next 20 years (*)
TODAY≈ 4.8 billion passengers
≈ 2000 commercial airports
93 Airports represent % 64 of the
BY
passengers in the world
35.000 commercial aircraft
9 6 billiBY YEAR 2027
9.6 billion passengers
~$300 billion investment is needed for Airport construction & Expansion
Problem Inadequate Airport Infrastructure
Solution Airport Privatisation
9
(*) Source: Airports Council International (ACI) Airport Economics Survey 2008
Total Passenger Growth by Region
Airports 2008 2009 2010 2011 2012 2017 2027 2007-2012 2007-2027
Africa 5.8% 6.7% 6.8% 6.4% 6.1% 5.5% 5.0% 6.3% 5.5%
Asia/Pasifics 4.3% 6.9% 8.2% 7.7% 7.2% 8.5% 6.0% 6.9% 6.3%
Europe 3.0% 4.5% 4.9% 4.5% 4.2% 3.4% 3.0% 4.2% 3.4%
Lat America/Caribbean 3.3% 5.3% 6.0% 5.7% 5.5% 5.1% 4.9% 5.1% 5.0%
Middle East 5.5% 7.0% 6.5% 5.9% 5.4% 4.5% 3.8% 6.0% 4.6%
North America -0,8% -0,8% 3,3% 3,1% 3,1% 2,9% 2,7% 1,5% 2,5%
Source: ACI (Airports Council International)
2009 Monthly Passenger Trends
WORLD 2.3% 3.6% 5.4% 5.1% 4.9% 4.4% 4.1% 4.3% 4.2%
h 0%
3%
6%
9%
g r o
w t
-9%
-6%
-3%
%JAN FEB MAR APR MAY JUN
10Source: ACI, TAV Airports
-12%
World TAV total Istanbul Int'l
Potential Projects
Airports need development!!!
Potential projects in the region
p pSignificant traffic growth expected in the region
Thus, significant number of airport developments continuing and upcoming in the Middle East, Africa, Europe the CIS countries including Russia and IndiaEurope, the CIS countries including Russia and India
Thus, experienced international airport operators will be needed as the infrastructure developments reach completion
1111
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 13
TAV Airports Operations 26TAV Airports – Operations 26
Conclusion 37
1212
Operational Performance(in million €)* 2006 2007** 2008** ∆ y-o-y 1H09 ** 1H08 ** ∆ ∆ y-o-yRevenues 401.8 507.5 627.3 24% 280.0 285.8 (2%)EBITDA 28.9 77.0 140.8 83% 56.3 53.6 5%EBITDA margin 7.2% 15.2% 22.4% - 20.1% 18.8% -EBITDAR 169 5 217 8 296 8 36% 126 4 129 0 (2%)EBITDAR 169.5 217.8 296.8 36% 126.4 129.0 (2%)EBITDAR margin 42.2% 42.9% 47.3% - 45.1% 45.2% -Net Income (Loss) (70.3) (43.8) 4.7 n.m. (2.5) (16.9) n.m.Cash flow from operations 134.3 13.4 226.3 n.m. 6.5 47.7 n.m.Capex 344.7 120.3 214.6 78% 200.1 101.0 n.m.Free Cash Flow (210.3) (106.9) 11.7 n.m. (193.6) (53.3) n.m.Shareholders’ Equity 327.4 322.5 294.0 (9%) 324.6 318.5 2%Net Debt 540.7 678.4 785.0 16% 971.7 742.2 31%Average number of employees 8,146 9,473 11,223 19% 11,775 11,004 7%(*) Construction revenue and construction expenditure are excluded while computing the operational performance in the table.(**) Fi dj t d b i l di t d f f i t i A k d I i (2008 €29 6 2007 €28 5 1H09(**) Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir (2008: €29.6mn, 2007: €28.5mn, 1H09: €10.3mn, 1H08: €10.7mn)
Consolidated Revenue (€m)
280
y-o-y -2%286
EBITDA (€m)
5456y-o-y
5%
Net Loss (€m)
280 54
-2.5
1H08 1H09
13
1H08 * 1H09 *
* Adjusted by including guaranteed pax fee revenues
1H08 * 1H09 *
* Adjusted by including guaranteed pax fee revenues
-16,9
Revenue & EBITDAR
125 118
160 162
150
200Total Revenues
-6%
+1%79 83
80
100EBITDAR
13%
+5%
125 118
50
100€m
1Q 2Q 1Q 2Q
5043
20
40
60
€m
-13%
1Q 2Q 1Q 2Q
Revenue breakdown (1H09) EBITDAR breakdown (1H09)
02008 2009
Q Q Q Q0
2008 2009
( ) ( )
Aviation22%
Other19% Havas
8%
ATU4%
BTA2%
Other services
1%
Ground Handling
17%
F&B6%
TAV
Other Airports
13%
14
Duty Free 36%
Istanbul72%
OPEX
120
128126
Opex
-3%
-2%
75 7581 79
Opex *
-1%-3%
120116
€m
1Q 2Q 1Q 2Q
€m
1Q 2Q 1Q 2Q
Opex breakdown (1H09) Opex breakdown (1H09)*
2008 2009 2008 2009
* Excluding concession rent expenses and D&A expense
Catering3% Duty free
11%Services
rendered6%
D&A7%
Other14%
Catering4%
Duty free17%
Other22%
Personnel30%
Concession29%
Services rendered
9%
15
29%Personnel
48%
* Excluding concession rent expenses and D&A expense
Revenue by country
2% of revenue
93% of revenue
5% of revenue
Note; We are awarded the tender in Macedonia on September 2, 2008 and we have not started operations yet.
16
FX Exposure
Revenues FX Breakdown (2008) Expenses FX Breakdown (2008)
€ 22%others
4%
$ 31%
TL 43%
17
1H09 Financial Summary
Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
TAV Airports Consolidated– 1H09
(€ million) Revenues EBITDAR(*) EBITDAR(*) MarginAirports 167 107 54%
Istanbul 124 90 73%Ankara 15 6 41%Izmir 9 3 34%Tbilisi (60%) 4 2 38%Batumi 0 (0) -Tunisie 14 6 42%Gazipasa - (0) -Macedonia - (0) -Macedonia (0)
Services 170 19 11%ATU (50%) 67 6 8%BTA 27 3 11%Havas 52 9 18%Others 23 1 3%
(*) EBITDAR figure is used for Istanbul and Tunisie
Others 23 1 3%Total 337 125 37%
Eliminations (57) 1Consolidated 280 126 45%
18
( ) EBITDAR figure is used for Istanbul and Tunisie
2008 Financial Summary
Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
TAV Airports Consolidated– 2008
(€ million) Revenues EBITDAR(*) EBITDAR(*) MarginAirports 377 252 67%
Istanbul 262 192 73%Ankara 34 12 35%Izmir 30 16 54%Tbilisi (60%) 10 3 32%Batumi 0 0 -Tunisie 42 29 69%Gazipasa - 0 -Macedonia - 0 -Macedonia 0
Services 385 44 11%ATU (50%) 151 14 9%BTA 58 4 6%Havas 121 28 23%Others 55 (2)
(*) EBITDAR figure is used for Istanbul and Tunisie
Others 55 (2) -Total 761 295 39%
Eliminations (134) 2Consolidated 627 297 47%
19
( ) EBITDAR figure is used for Istanbul and Tunisie
Cash Flow
(million € )
100
150
0
50
100
100
‐50
0
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
‐200
‐150
‐100
(*) Cash flow from operating activities less capex
‐200
Cash flow from operating activities Free Cash Flow (FCF) *
Seasonality
20
( ) Cash flow from operating activities less capex
CAPEX
1H09 Capex composition
(million €)113Enfidha Airport capex
A k
Gazipasa1%
Other2%
6762 68
45
88Ataturk Airport *
5%
1% 2%
18 15 20
3945
T i i
(*) Istanbul Ataturk Airport Development
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
property and equipment airport operation right * intangible assets
Tunisia92%
( ) Istanbul Ataturk Airport Development Project (expansion project) and Trigeneration Project
(*) BOT and concession assets
21
Cash & Debt Structure
TAV Airports Consolidated– As of 30 June 2009
(€ million) Cash and cash equivalents Debt Net DebtAirports 226 991 765
Istanbul 154 439 285Ankara 29 146 117Izmir 21 80 59Tbilisi (60%) 1 20 19Batumi 0 0 0Tunisie 22 299 278Gazipasa 0 7 7Macedonia 0 0 0Macedonia 0 0 0
Services 19 225 206ATU (50%) 4 24 20BTA 1 1 0Havas 6 0 -6Others 8 200 192Others 8 200 192
Total 245 1,217 972
22
Debt Repayment
TAV Istanbul
409(€ million, as of June 30, 2009)
TAV Istanbul
TAV Tunisie
TAV Esenboga
TAV Izmir
ATÜ
Debt on Holding Co. (as of June 30, 2009)
TAV Tbilisi
Others
151
88 83 99 105 97
135 (€ million)
1‐year 2‐year 3‐year 4‐year 5‐year 6‐10 year 10+ year 1‐year 2‐year 3‐year 4‐year
22 18 9
23
Debt Structure
NET DEBT (€ million) 30 June 2009 31 March 2009 31 December 2008
Airports 765 720 571
İstanbul 285 306 229
Ankara 117 119 119
Izmir 59 65 65
Tbilisi (60%) 19 22 21
Increase in Istanbul’s debt due to lease payment at the beginning of the year
Tbilisi (60%) 19 22 21
Batumi 0 0 0
Tunisie 278 205 134
Gazipasa 7 3 3
Drawndown of the project finance facility for the construction of Enfidha Airport in Tunisia
Macedonia - - -
Services 206 213 214
ATU (50%) 20 22 20
BTA 0 1 1BTA 0 1 1
HAVAŞ (6) (1) (4)
Others 192 191 197
Total 972 933 785
Holding Co. debt level mainly stemmed from acquisition of 40% of Havaş shares and equity contribution of TAV Tunisie
24
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 13
TAV Airports – Operations 26TAV Airports – Operations 26
Conclusion 37
25
Istanbul Atatürk Airport (100% owned)
Largest in the region
Main hub and home base for Turkish Airlines 28.623.2
21.319 3
Passenger traffic 2003-2008 (m)
Fastest growing airport in Europe
Revenue of €262 million in 2008, up 7%
€192 million EBITDAR in 2008, implies 7% growth and 73% margin
19.315.612.1
2003 2004 2005 2006 2007 2008and 73% margin
(€ )( )
Source: DHMI, Terminal passenger figures exclude transit passengersNote: Since 2008 DHMI passenger figures are including transfer passengers, 2008
passenger figures are not comparable with 2007 passenger figures.
2003 2004 2005 2006 2007 2008
International Domestic
Revenue (€m)
Domestic International
Passengers per airline (2008)
200
250
300 y-o-y +7%THY
71%
Atl J t
0
50
100
150
200
Onur Air16%
Atlas Jet12%
other1%
26Source: DHMİ
02003 2004 2005 2006 2007 2008
1%
THY(55%)
Lufthansa(3%)
MNG Air(2%)
Atlas Jet(2%)
other(38%)
Ankara Esenboga Airport (100% owned)
Newest in the region
Passenger traffic 2003-2008 (m)
+15% 5.75 0
y-o-y 15%
Secondary hub of Turkish Airlines (THY)
THY’s Ankara based brand Anadolu Jet began to fly in May 2008.
Operations commenced in October 16, 2006.
CAGR 5.04.5
3.83.32.8
p ,
(€ )( )
2003
2004
2005
2006
2007
2008
International DomesticSource: DHMI
Revenue (€m)Passengers per airline (2008)
THY(29%)Lufthansa
(11%)
bmi(7%)
Blue wings(8%)
27Source: DHMI
THY(79%)
Pegasus(18%)
Atlas Jet(3%)
other(0%)
other(45%)
Izmir Adnan Menderes Airport (100% owned)
Third largest city with the second biggest port in
Passenger traffic 2003-2008 (m) (*)
1.71.61 51.7
1 51 4
y-o-y +6%
Turkey
Major tourist destination
Operations commenced in September 13, 2006.
Diversified customer base
1.51.51.4
(€ )( )
2003
2004
2005
2006
2007
2008
Source: DHMI(*) International passengers only
Revenue (€m)Passengers per airline (2008)
Sun express(52%)
THY
KTHY(18%)
Atlas(6%)
(5%)
28
Source: DHMI
Pegasus(19%)
Tbilisi International Airport (66% owned)
Operations in new terminal commenced in February 7, 2007.
Passenger traffic 2003-2008 (‘000)
547 567 616y-o-y +16%+18%
CAGR715
Capturing 91% of all air traffic in Georgia
Capital city of Georgia with promising business opportunities
Capacity: 2.8 million passengers per year
318402
CAGR
p y p g p y
(€ )( )
2003
2004
2005
2006
2007
2008
International DomesticSource: Georgian Civil Aviation Authority
Revenue (€m)Passengers per airline (1H08)
Georgian Airw ays (31%)
THY (17%)
Lufthansa (9%)
Azal (7%)
Austrian Airlines (5%)
Air Baltic (4%)
Others (27%)
29
Others (27%)Source: Georgian Civil Aviation Authority
Batumi International Airport (60% owned)
Operations in the terminal commenced in May 26,
Passenger traffic 2007-2008 (‘000)
81
2007.
Second biggest city of Georgia with strategic importance
40
07 08
(€ )( Q )
200
200
International Domestic
Source: Georgian Civil Aviation Authority
Revenue (€m)Passengers per airline (1Q08)
Georgian Airw ays (14%)
THY (69%)THY (69%)
JSC TAM AIR (16%)
South Airlines (1%)
30
Source: Georgian Civil Aviation Authority
Monastir International Airport (85% owned)(*)
4.24.24.24 1
TAV started to operate in January 1, 2008
Tunisia have potential to be the hub of Africa in near future
Passenger traffic 2003-2008 (m)
y-o-y -1%+8%
CAGR 4.13.72.8
3 4 5 6 7 8
near future
Capturing 39% of all air traffic in Tunisia, mainly tourists using charters
90% of travelers (6 million in 2007) visiting Tunisia prefered air transportation
2003
2004
2005
2006
2007
2008
International + Domestic
p p
New terminal building construction in Enfidha will be completed by October 2009
(€ )( )
Source: TAV Tunisie* TAV sold 15% of shares of TAV Tunisie SA to IFC in June 2009.
Revenue (€m)Passengers per airline (2008)
Tunis Air (31%)
Nouvelair Tunusia (24%)Nouvelair Tunusia (24%)
Karthago Airlines (9%)
Air Berlin (4%)
Others (32%)
31
Source: TAV Tunisie
ATU Duty Free (50% owned)
ATU is the sole duty free operator at Istanbul Ataturk, Ankara, Izmir, Tbilisi and BatumiCompetitive concession fee paid to TAV for ATÜ-operated shops in Ataturk Airport
Financial Data
(€ m) 2006 2007* 2008* Changeoperated shops in Ataturk AirportSpending per pax increased from €14.8 in 2007 to €15.4 in 2008, mainly because of new layout of duty free area at Istanbul Ataturk Airport. Spending per pax increased to €13.4 (2007: €11.6) Note: Figures imply 100% of ATU
gTotal Revenues 217.2 277.0 302.8 9%EBITDA 7.6 17.6 27.6 57%EBITDA Margin 3.5% 6.4% 9.1% -Spend per pax (€) 16.0 14.8 15.4 4%
* 2007 d 2008 d t f d i l d I t b l A k & I i hilin Ankara EsenbogaATÜ also pursues tenders outside TAV operations
* 2007 and 2008 duty-free spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only
Spend per pax (€)*Revenue (€m)
14.814.814.816.0 15.4
14.3
217277
y-o-y +9%
303
188217
166142
32
2003 2004 2005 2006 2007 20082003 2004 2005 2006 2007 2008
* 2007 and 2008 duty-free spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only
BTA Catering Services (67% owned)
BTA is the food and beverage operator at Istanbul Ataturk (Int’l), Ankara, Izmir, Tbilisi and BatumiTotal revenue increased by 15% in 2008, reflecting the increase in per pax spend and improvement of (€ m) 2006 2007* 2008* Change
Financial Data
the increase in per pax spend and improvement of Cakes&Bakes operations.Concession fees: BTA pays c40% of its revenues to TAVSpend per pax increased from €1.8 in 2007 to €2.0
( ) gTotal Revenues 35.0 50.3 58.1 15%EBITDA 3.0 -0.2 3.5 n.m.EBITDA Margin 8.6% n.m. 6.0% -
Spend per pax (€) 2.4 1.8 2.0 14%
Note: Figures imply 100% of BTAin 2008.
g p y
* 2007 and 2008 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only
Spend per pax (€)*
50.3
y-o-y +15%
1.82.4
1.91 6
Revenue (€m)
58.12.0
2003 2004 2005 2006 2007 2008
29.435.0
21.114.9
1.31.6
33
2003 2004 2005 2006 2007 2008
2003 2004 2005 2006 2007 2008 * 2007 and 2008 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only
Havaş Ground Handling (100% owned)(*)
Total revenue of Havas increased by 12% in 2008, with 15% YoY growth in ground handling revenues.
Currently operating at 18 airports in Turkey
Financial Data
(€ m) 2006 2007 2008 ChangeFormed strategic partnership with Cyprus Turkish Airlines (KTHY) to undertake ground handling operations in Nothern Cyprus (Ercan Airport)
Havaş has been elected by THY as a 50% partner for the TGS Ground Handling Services Inc.
( ) gTotal Revenues 99.5 108.1 120.6 12%EBITDA 11.1 20.3 28.1 39%EBITDA Margin 11.2% 18.7% 23.3% -
# Aircrafts handled (‘000) 122.7 139.3 158.6 14%
for the TGS Ground Handling Services Inc.Note: Figures imply 100% of HAVAS
* TAV increased its stake in Havaş to 100% in Nov 2007.
122.7 139.3
Revenue (€m) # Aircrafts handled (‘000)
84.199.5
y-o-y +12%
108.1
y-o-y +14%
158.6120.6
58.5
34
2005 2006 2007 20082005 2006 2007 2008
Other Services
Other services income mainly contains incomes from maintenance, CIP lounge services, security services and software sales.
TAV O&M (100%), incorporated in 2004 (€ m) 2006 2007 2008 Change
Financial Data
Commercial area allocations and maintenance
CIP / VIP
TAV IT (97%), become a separate entity in 2005
Airport IT services software and hardware sales
Note: All periods include TAV Holding, TAV O&M, TAV IT and TAV Security
( ) ChangeTotal Revenues 38.8 50.3 54.5 8%EBITDA 6.7 -6.6 -1.7 n.m.EBITDA Margin 17.3% n.m. n.m. -
Airport IT services, software and hardware sales
TAV Security (67%), became a separate entity in 2006
Security service provider in Istanbul, Ankara and Izmir
Revenue Breakdown (2008)y-o-y +8%
50.3
Revenue (€m)
54.5
TAV Holding
30%
TAV IT14%
38.8
TAV O&M44%
TAV Security
35
2006 2007 2008
y12%
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 13
TAV Airports Operations 26TAV Airports – Operations 26
Conclusion 37
3636
Outlook
Traffic &passenger growth
THY joined Star Alliance in April 2008passenger growth
ATÜ and BTA expected to increase revenues at new airportsCommercial Commercial
revenuesrevenues
ATÜ and BTA expected to increase revenues at new airports
All international passengers eligible for duty free (departing and arriving)
New projectsNew projects
Started operations in Monastir Airport in Tunisia in 2008
Macedonia concession contract efective date; March 1, 2010
TGS Yer Hizmetleri A.Ş.; 50%-50% partnership between Havaş and T rkish AirlinesTurkish Airlines
CapexCapex Minimal maintenance capex on existing concessions as all terminals are brand new
37
brand new
AppendixShare Performance
Revenue Sources
Concession Overview
Historic Overview
Developements in 2007, 2008, 2009Developements in 2007, 2008, 2009
IFRIC 12 & Cash Flow Hedge Accounting
Revenue and EBITDAR ProfileRevenue and EBITDAR Profile
Consolidated Financial Statements
Corporate Governance Rating
38
Corporate Governance Rating
Share Performance (as of September 30, 2009)
Closing Price TL 4.08 (US$ 2.75) per share
Market Cap US$ 999 mn
Share Price Performance
TL USD Relative to ISE-100
Weekly -2% -2% -7%Avg. Daily Volume US$ 9.2 mn (last 3 months)
Free Float 42.82%
Foreign ownership 73 1% of free float
Weekly -2% -2% -7%
1M -2% -1% -18%
3M 0% 3% -32%
YTD 61% 67% -21%
Since IPO 46% 50% 58%Foreign ownership 73.1% of free float
Max Mcap US$ 2,626 mn(23.07.2007)
Min Mcap US$ 402 mn 1 31,4
78Price ($)Relative
8 35Price ($) Volume ($m)
Since IPO -46% -50% -58%
Market Performance
Min Mcap US$ 402 mn(16.10.2008)
0,60,70,80,91,01,11,21,3
2345
67
2
3
4
5
6
7
15
20
25
30
0,30,40,50,6
012
30-0
9-09
06-0
7-09
08-0
4-09
14-0
1-09
14-1
0-08
17-0
7-08
22-0
4-08
29-0
1-08
01-1
1-07
06-0
8-07
14-0
5-07
0
1
2
5
1030
.09.
09
06.0
7.09
08.0
4.09
14.0
1.09
14.1
0.08
17.0
7.08
22.0
4.08
29.0
1.08
01.1
1.07
06.0
8.07
14.0
5.07
39
Notes: Share figures in this page was prepared as of September 16, 2009.
TAVHL ($) Relative to ISE
Revenue sources
Aeronautical Charges Non-aeronautical Charges
Passenger Fee Ground Handling Landing Parking Fuel Duty Free F&B Car Park
Turkey
Istanbul
Esenboga
Izmir
Gazipasap
TunisiaEnfidha
Monastir
GeorgiaTbilisi
Batumi
MacedoniaSkopje
MacedoniaOhrid
BTA will start operations in Istanbul Ataturk Airport Domestic Terminal starting from July 2010
40
BTA will start operations in Istanbul Ataturk Airport Domestic Terminal starting from July 2010ATU will start operations in Monastir starting from 2015BTA will start operations in Monastir starting from 2018
Concession Overview
Type / expire Scope Concession fee Net Debt (*)2008
Pax (mppa)Fee/pax Intern’l
Fee/pax domesticAirport Volume
guaranteeTAV stake
Concession(2021) Intl + dom $140m/yr +
VAT €285m28.6 US$15 €3Istanbul Ataturk
BOT(2023) Intl + dom - €117m5.7 €15 €3Ankara
E b
No
0.6m Dom.0.75 Int’l for 2007 5%
100%
100%(2023) Intl dom €117m5.7 €15 €3Esenboga
BOT(2015) Intl - €59m1.7 €15 -Izmir A
Menderes
2007 + 5% p.a.
1.0m Int’l for 2006 + 3%
p.a.
100%
100%
BOT(2027) Intl + dom - €19m0.71 US$22 US$6Tbilisi No66%
BOT + concession Intl + dom
11-26% of revenues €278m4 2 €9 in 2009 €9 in 2009
Monastir& No85%
BOT(2027) Intl + dom - -0.08 US$12 US$7Batumi No60%
41(*) As of 30 June 2009
concession(2047)
Intl + dom from 2010 to 2047
€278m4.2 €9 in 2009 €9 in 2009&Enfidha
No85%
Historic Overview
Established under the name of Tepe Akfen Vie Yatirim Yapim ve Isletme A.S.TAV successfully
May 2004BTA started operating the Istanbul International Airport Hotel
August 2004
March 2006TAV Security became a separate entity
August 2006Name changed to TAV Havalimanlari Holding A S
January 2008TAV started operating Monastir Airport
March 2008TAV Istanbul refinancingTAV successfully
tendered for BOT project for Istanbul Atatürk Airport(Concession deadline May 7, 2004)
August 2004Executed the BOT agreement for Ankara Esenboğa International Airport (right to operate through mid-2023)
September 2004
Holding A.S.September 2006
Completed the construction of Izmir Adnan Menderes Airport’s international terminal
October 2006Ankara Esenboğa’s new domestic and
TAV Istanbul refinancingApril 2008
TAV Tunisie signed project financing agreement
September 2008TAV is awarded the tender for Macedonian Airport
1997 1998 2000 2003 2006200220011999 20052004
TAV O&M incorporated international terminals completedBTA was founded
2007 2008
pInfrastructure Development
January 2000ATÜ began operationsInternational terminal building completed c 8
June 2005TAV won the tender for Ataturk Airport to operate for 15.5 years (through 2nd Jan 2021)
July 2005TAV acquired 60% of Havaş sharesTAV obtained control of the BOT for Izmir Adnan
February 2007IPO: TAV Havalimanlari Holding offered 44.56 million of its shares to public
March 2007TAV won the tender to operate Monastir and Enfidha Airports in Tunisia for 40 yearscompleted c.8
months ahead of schedule
June 2000Concession agreement extended through to
TAV obtained control of the BOT for Izmir Adnan Menderes Airport (right to operate through Jan 2015) through the acquisition of Havaş
August 2005TAV IT became a separate entity
September 2005TAV Urban Georgia LLC won the BOT tender for
Airports in Tunisia for 40 yearsMay 2007
TAV started to operate Batumi AirportJuly 2007
TAV acquired remaining 25% of TAV Esenboga and 5% of TAV Izmir
August 2007TAV i d d h d f A l G i
42
g2nd July 2005 in return for a 30% enlargement of the int’l terminal
the Tbilisi Airport (10.5 years operating contract) with a 9.5-year extension granted in return for the re-development of the Batumi Airport
TAV is awarded the tender of Antalya-Gazipasa Airport
November 2007TAV increased its stake in Havaş to 100% from 60%
Developments in 2007
January
February
March
April
May
June
July
August
September November
October December2007
18 May 2007 - Tunisia Enfidha and Monastir airports concession agreement is signed
26 May 2007 – Batumi Airport commenced operations
6 July 2007 – We purchased 25% of TAV Esenboga
22 June 2007 – TAV Esenboga signed the refinancing agreement
y p g
30 July 2007 – We purchased 5% of TAV Izmir from Havas
31 August 2007 – We won Antalya-Gazipasa tender for 25 years
19 November 2007 – The share of TAV in Havaş has increased from 60% to 100%.
43
Developments in 2008
January
February
March
April
May
June
July
August
September November
October December2008
1 January 2008 - We started operating the Monastir Airport in Tunisia
7 January 2008 – Antalya-Gazipasa Airport concession agreement is signed.
10 March 2008 – TAV Istanbul signed the refinancing agreement
25 April 2008 – TAV Tunisie signed a project financing agreement
44
Developments in 2008
January
February
March
April
May
June
July
August
September November
October December2008
2 September 2008 – TAV was awarded the tender in Macedonia.
24 September 2008 – The concession agreement for three airports in Macedonia has been signed
4 N b 2008 At t k Ai t i j t h b i d b t TAV4 November 2008 – Ataturk Airport expansion project has been signed between TAV Istanbul and State Airport Authority (DHMI)
19 December 2008 – Turkish Airlines declared that HAVAS has been elected as a 50% partner for the TGS Ground Handling Services Inc.
45
Developments in 2009
January
February
March
April
May
June
July
August
September November
October December2009
30 January - 13 February 2009 – The shareholders exercised their pre-emptive rights stemming from the 50% rights issue for 15 days
02 March 2009 – The consortium by TAV Airports and Skonto Buve LTD has been elected02 March 2009 The consortium by TAV Airports and Skonto Buve LTD has been elected for the partnership with the SJSC Riga International Airport Management.
30 June 2009 – The agreement regarding the sale of 15% of shares of TAV Tunisie SA to International Finance Corporation (IFC) is signed by the parties. p ( ) g y p
30 June 2009 The agreement regarding the sale of 15% of shares of TAV Tunisie SA to
06 July 2009 – The negotiations with the potential investors have been started regarding the sale of minority shares up to 40% of Havaş.
30 June 2009 – The agreement regarding the sale of 15% of shares of TAV Tunisie SA to International Finance Corporation (IFC) is signed by the parties. 27 August 2009 – New effective date of Macedonia concession contract is determined as
March 1, 2010.
31 August 2009 – The partnership within TGS Yer Hizmetleri A.Ş. by the joint venture
46
g p p Ş y jcontract signed between HAVAŞ and Turkish Airlines is approved by the Competition Board.
IFRIC 12
IFRIC 12 is a new application regarding to interpretation of most of existing standards in the IFRS for example, IAS 11-Construction Contracts, IAS 16-Property Plant and equipment, IAS 17-Leases, IAS 36-Impairment of Assets and IAS 38-Intangible Assets.
IFRIC 12 S i C i A t d l d b th I t ti l Fi i lIFRIC 12 Service Concession Arrangements was developed by the International Financial Reporting Interpretations Committee. Effective date of the application is 1 January 2008.
TAV Airports adopted IFRIC 12 in the consolidated financial statements for the first time as of 31 March 2008 retrospectively.
IFRIC 12 affects P&L in terms of the decrease in aviation income (for the guaranteed passenger fees) and depreciation expenses while the increase in financial income in accordance with such interpretation. “BOT assets” are classified as “airport operation right” and “trade receivable” in the consolidated financial statements.
It means the operator (TAV Airports) should account these investments as cost and book construction revenue (if a mark-up on costs) on its financials instead of investments according to the completion of infrastructure throughout the construction periods. Mark-up rates for TAV İzmir, TAV Esenboğa TAV Tbilisi TAV Tunisia and TAV Gazipasa which are in the application of IFRIC 12 areEsenboğa, TAV Tbilisi, TAV Tunisia and TAV Gazipasa, which are in the application of IFRIC 12 are assessed by the management as 0%, 0%, 15%, 5% and 0% during the application periods, respectively.
The remaining discounted guaranteed passenger fee to be received from DHMİ according to the agreements made for the operations of Ankara Esenboğa Airport and İzmir Adnan Menderes Airport
47
agreements made for the operations of Ankara Esenboğa Airport and İzmir Adnan Menderes Airport is represented as guaranteed passenger fee receivable in the balance sheet as a result of IFRIC 12 application.
IFRIC 12
The effect of adoption of IFRIC 12
Airport operation right AddedTrade receivables IncreaseBuild-operate-transfer (“BOT”) Investment Removed
Balance Sheet (Assets)
Construction revenue Added
Income Statement
Construction expenditure (-) Added
Aviation income Decrease (guaranteed pax fees)
Discount interest income AddedDepreciation and amortisation expense (-) Decrease
48
Cash Flow Hedge Accounting
Subsidiaries, TAV Istanbul, TAV Esenboğa, TAV İzmir and TAV Tunisie enter into swap transactions in order to diminish exposure to foreign currency mismatch relating to DHMI instalments and interest rate risk to manage exposure to the floating interest rates relating to loans used.
100%, 85%, 75% and 100% of floating bank loans for TAV İstanbul, TAV Tunisia, TAV İzmir and TAV Esenboğa, respectively are fixed with financial derivatives.
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 effective. To the extent that the hedge is ineffective, changes in fair value are recognized in profit or loss.
Equity Profit or loss30 June 2009USD (27 719 381) (1 696 791)
Sensitivity Analysis
A 10 percent strengthening of the EUR against the following currencies at 30 June 2009 and 31 December 2008 would have increased (decreased) equity and profit or loss by the amounts
USD (27,719,381) (1,696,791)TRY - 3,044,013Other - 2,122,168Total (27,719,381) 3,469,390
shown below. This analysis assumes that all other variables, in particular interest rates, remain constant. The analysis is performed on the same basis for 2008
Based on the Group’s current borrowing profile, a 50 basis points increase in Euribor or Libor would have resulted in additional
31 December 2008USD (33,310,535) (5,152,864)TRY - 4,212,636Other - 2,531,786Total (33,310,535) 1,591,558
annual interest expense of approximately EUR 0.7 million on the Group’s variable rate debt when ignoring effect of derivative financial instruments. EUR 0.3 million of the exposure is hedged through IRS contracts. Therefore, the net exposure on income statement would be EUR 0.4 million. A 50 basis points increase in
49
Euribor or Libor would have resulted a decrease in hedging reserve in equity approximately by EUR 12 million.
Revenue Profile
TAV Airports Revenues
(€ million) 2006 2007* 2008* Change 1H09 * 1H08 * ChangeAirports 247 314 377 20% 167 172 (3%)Airports 247 314 377 20% 167 172 (3%)
Istanbul 227 244 262 7% 124 126 (2%)Others 19 70 115 66% 43 46 (6%)
Services 244 313 384 23% 170 176 (3%)ATU (50%) 109 138 151 9% 67 73 (8%)BTA 35 50 58 15% 27 27 1%BTA 35 50 58 15% 27 27 1%Havas 61 74 121 63% 52 52 1%Others 39 50 54 8% 23 24 (4%)
Total 490 627 761 21% 337 348 (3%)Eliminations (89) (119) (134) (57) (63)
Consolidated 402 508 627 24% 280 285 (2%)
(*) Adjusted by including guaranteed pax fee revenues from airports in Ankara and Izmir (2008: €29.6mn, 2007: €28.5mn, 1H09: €10.3mn, 1H08: €10.7mn)
50
EBITDAR Build-up
Adjusted revenues decreased by 2% to € 280
Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
1H09 EBITDAR Build-up (€m)j y
million (IFRS:€ 270 million) in 1H09
Aviation operations (including ground handling), account for 41% of total operating income and non-aviation operations account vi
atio
n
115.7 242
pfor 59% of total operating income in 1H09.
Operating expenses decreased by 3% to €242million in 1H09
Av
164.3
Adjusted EBITDA: €56.3 million in 1H09, which was €53.6 million in 1H08.
Concession rent expenses decreased by 7% to €70.1 million in 1H09
Non
-avi
atio
n
38.018.4
70.1 126.4
Adjusted EBITDAR declined by 2% to €126 million in 1H09, implying 45% margin.
nues
Ope
x
EBIT
D&
A
exp.
DA
R
N
51
Rev
en O E D
Con
c.
EBIT
EBITDAR Profile
TAV Airports EBITDAR (*)
(€ million) 2006 2007** 2008** Change 1H09 ** 1H08 ** ChangeAirports 151 200 252 26% 107 114 (7%)
Istanbul 150 180 192 7% 90 92 (2%)Others 1 20 60 196% 16 22 (25%)
Services 19 14 44 n.m. 19 12 56%ATU (50%) 4 9 14 57% 6 6 (6%)BTA 3 0 3 n.m. 3 0 n.m.Havas 5 12 28 137% 9 7 29%Others 7 -7 -2 n.m. 1 (1) n.m.
Total 170 214 295 38% 125 126 (1%)Eliminations 0 4 1 1 3
Consolidated 170 218 297 36% 126 129 (2%)
(*) EBITDAR figures for Istanbul and Tunisie include concession rent expense(**) Adjusted by including guaranteed pax fee revenues from airports in Ankara and Izmir (2008: €29.6mn, 2007: €28.5mn,
1H09: €10.3mn, 1H08: €10.7mn)1H09: €10.3mn, 1H08: €10.7mn)
52
Consolidated Income Statement(€ million) (Audited) 1H09 (Audited) 1H08Construction revenue 197,582,214 108,786,116Operating revenue 257,799,386 261,857,498
Other operating income 11,854,663 12,674,221Construction expenditure (188,307,237) (103,605,825)Cost of catering inventory sold (6 534 753) (6 025 406)Cost of catering inventory sold (6,534,753) (6,025,406)Cost of duty free inventory sold (26,435,425) (28,904,457)Cost of services rendered (14,111,887) (15,643,297)Personnel expenses (72,942,052) (71,609,092)Concession rent expenses (70,064,429) (75,364,164)Depreciation and amortisation expense (18,353,236) (16,898,911)Other operating expenses (33,604,201) (34,022,905)Operating profit 36,883,043 31,243,778Finance income 7,940,477 7,474,573Finance expenses (38,569,562) (50,122,901)Net finance expense (30,629,085) (42,648,328)
Profit / (loss) before income tax 6,253,958 (11,404,550)(5 448 952)Income tax expense (8,722,659) (5,448,952)
(Loss) / profit for the period (2,468,701) (16,853,502)
Other comprehensive (loss) / incomeRevaluation of property and equipment 34,160 34,160Effective portion of changes in fair value
of cash flow hedges (29,869,631) 14,594,577Foreign currency translation differences
for foreign operations (176,755) 405,910Income tax on cash flow hedge reserves 4,920,526 (2,198,813)
Other comprehensive (loss) / income for the period, net of tax (25,091,700) 12,835,834Total comprehensive (loss) / income for the period (27,560,401) (4,017,668)
(Loss) / profit attributable to:
53
( ) pOwners of the Company (2,094,162) (17,115,012)Non-controlling interest (374,539) 261,510
(Loss) / profit Loss for the period (2,468,701) (16,853,502)
Consolidated Balance Sheet
ASSETS(€ million) 30 June 2009 31 December 2008 Property and equipment 84,646,001 78,111,498Intangible assets 31,105,654 32,679,835Airport operation right 635 061 453 457 410 838Airport operation right 635,061,453 457,410,838Other investments 24,238 24,238Goodwill 131,564,539 131,564,539Prepaid concession expenses, non-current portion 167,793,076 120,285,515Non-current trade receivables 145,382,179 156,306,856Non-current due from related parties 8,883,080 8,140,329Other non-current assets 13,477,763 14,891,066Deferred tax assets 37,987,447 37,366,642
Total non-current assets 1,255,925,430 1,036,781,356Inventories 9,544,681 9,770,719Prepaid concession expenses, current portion 120,858,464 128,688,749Trade receivables 69,410,835 55,968,143Due from related parties 4,979,219 7,019,918Derivative financial instruments 13,008,552 32,257,634Other receivables and current assets 35,238,027 46,732,857Cash and cash equivalents 17,899,895 22,572,015Restricted bank balances 226,898,749 291,098,061
Total current assets 497,838,422 594,108,096TOTAL ASSETS 1,753,763,852 1,630,889,452
54
Consolidated Balance Sheet
EQUITY (€ million) 30 June 2009 31 December 2008
Share capital 162,383,978 104,910,267Share premium 220,286,470 220,182,481Legal reser es 18 385 794 15 062 069Legal reserves 18,385,794 15,062,069Revaluation surplus 2,495,128 2,665,932Purchase of shares of entities under common control 40,063,860 40,063,860Cash flow hedge reserve (56,250,908) (31,301,803)Translation reserves (810,913) (872,551)Accumulated losses (61,941,354) (56,688,149)
Total equity attributable to equity holders of the Company 324,612,055 294,022,106
Non-controlling interest 14,906,133 15,017,194
Total Equity 339,518,188 309,039,300, , , ,
55
Consolidated Balance Sheet
LIABILITY(€ million) 30 June 2009 31 December 2008 LIABILITIES
Loans and borrowings 975,846,720 876,556,773Reserve for employee severence indemnity 4 412 061 3 247 519Reserve for employee severence indemnity 4,412,061 3,247,519Due to related parties 9,599,983 9,591,944Deferred income 14,712,721 16,659,877Long term trade payables - 75,022Deferred tax liabilities 6,193,552 5,752,448
Total non-current liabilities 1,010,765,037 911,883,583
Bank overdraft 1,315,398 1,844,425Loans and borrowings 239,346,114 220,234,320Trade payables 32,541,161 27,543,307Due to related parties 10,923,751 52,428,667Derivative financial instruments 80,320,362 69,699,812Current tax liabilities 2,828,808 2,488,341Other payables 27,653,831 25,299,953Provisions 3,225,544 3,762,121Deferred income 5,325,658 6,665,623
Total current liabilities 403,480,627 409,966,569
Total Liabilities 1,414,245,664 1,321,850,152, , , , , ,
TOTAL EQUITY AND LIABILITIES 1,753,763,852 1,630,889,452
56
Consolidated Cash Flow Statement
(€ million) 1H09 1H08Profit / (loss) for the year (2,468,701) (16,853,502)
Amortisation of airport operation right 9,504,940 9,456,251Depreciation of property and equipment 6,585,058 5,581,604A ti ti f i t ibl t 2 263 238 1 861 056Amortisation of intangible assets 2,263,238 1,861,056Amortisation of concession asset 70,064,429 75,364,164Provision for employment termination benefits 1,871,926 1,874,319Provision set for doubtful receivables 82,983 436,091Collections of doubtful receivables (211,044) (42,305)Provision set for tax penalties 444,174 (234,557)Other provisions (released) / set (31,767) 2,132,568p ( ) ( , ) , ,Discount on receivables and payables, net 163,762 489,566Gain on sale of property and equipment (53,126) (357,845)Accrual set for unused vacation 670,904 582,934Reversal of provision for slow moving inventory (4,726) -Accrued interest income (439,713) 449,719Accrued interest expense on financial liabilities 24,633,561 35,366,896I t 8 722 659 5 448 952Income tax expense 8,722,659 5,448,952Marked to market valuation of derivative instruments - (14,393,323)Unrealised foreign exchange differences on balance sheet items 10,208,743 (38,586,423)Cash flows from operating activities 132,007,300 68,576,165Change in Working Capital (92,202,558) (4,317,316)
Cash generated from operations 39,804,742 64,258,849Income taxes paid (1,153,026) (1,368,600)Interest paid (31,415,562) (14,765,566)Retirement benefits paid (698,157) (452,460)Net cash from operating activities 6,537,997 47,672,223
57
Consolidated Cash Flow Statement
(€ million) 1H09 1H08
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 5,133,579 5,676,492Interest received 5,133,579 5,676,492
Net change in investments held for trading - 248,683Proceeds from sale of property and equipment and intangible assets and correction of airport
operation right 294,592 1,604,744
Acquisition of property and equipment (13,212,493) (6,287,509)
Additions to airport operation right (186,447,035) (93,920,275)p p g ( , , ) ( , , )
Net cash used in investing activities (450,514) (757,170)
58
Consolidated Cash Flow Statement
(€ million) 1H09 1H08CASH FLOWS FROM FINANCING ACTIVITIES
New borrowings raised 231,583,202 534,690,259Repayment of borrowings (116,660,449) (584,701,201)Change in restricted bank balances 11 677 729 48 816 766Change in restricted bank balances 11,677,729 48,816,766Non-controlling interest change (111,061) (699,728)Repayment of finance lease liabilities (66,340) 438,711Increase in share premium 103,989 -Increase in share capital 57,473,711 -Net cash provided from / (used in) financing activities 184,000,781 (1,455,193)
NET (DECREASE) / INCREASE FROM CASH AND CASH EQUIVALENTS (4,143,093) (47,218,005)CASH AND CASH EQUIVALENTS AT 1 JANUARY 20,727,590 62,681,735CASH AND CASH EQUIVALENTS AT 30 JUNE 16,584,497 15,463,730
59
Corporate Governance Rating
The “Corporate Governance Rating Report” for TAV Airpors made by RiskMetrics Group - Institutional Shareholder Services (ISS), a global corporate governance rating company having the official authorization to do rating in accordance with the Capital Markets Board (CMB) Corporate Governance Principles in Turkey.
Our company is rated with the grade 83.3 (8.5) in general average as per Corporate Governance Rating Report.
Final rating grades are determined by the separate weighting of four sub-categories within the frame of the related resolution of CMB.
The breakdown of corporate governance rating grades is stated belowThe breakdown of corporate governance rating grades is stated below.
Sub-categories Weight Grade Grade assigned
Shareholders 0.25 8.11 8.00
Public Disclosure and Transparency 0.35 8.69 8.50
Stakeholders 0.15 8.88 9.00
Board of Directors 0.25 7.78 8.00
Total 1.00 8.33 8.50
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Board of Directors
Ali Haydar KurtdarcanVi Ch i
Hamdi AkınChairman
Chairman of Tepe Construction Ind. Inc
Chairman of Akfen HoldingMember of Ankara Chamber of Commerce (ATO) and board member of Turkey Industrialists’ and Businessmen’s Association
Positions within TAV Airports and other companies
Vice ChairmanDr. Sani Şener
Member and CEOIbrahim Suha Guçsav
Member
Önder Sezgi
p
Chief Executive Officer of TAV Airports
Vice Chairman of Akfen HoldingAbdullah Atalar
Member Vice Chairman of Bilkent HoldingÖnder Sezgi
Member Financial Affairs and Audit Director of Bilkent Holding
Şeref ErenM b Advisor, TAV Airports
H. Kadri Samsunlu Member Advisor to Chairman of the Board of Akfen Holding
Süleyman SonMember General Manager and Board member of Tepe Construction
Mumtaz KhanMember CEO of Middle East & Asia Capital Partners
Shailesh Kumar DashMember Global Investment House (Kuwait)
Member Advisor, TAV Airports
Mehmet ErdoğanMember External Affairs Coordinator, TAV Airports
Dr. Cem KozluIndependent member Independent Board Member
Member
Pierre de Champfleury I d d t B d M b
Ahmet Ersagun YücelMember General Secretary of TAV Airports
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Pierre de ChampfleuryIndependent member Independent Board Member
Management Team
CEO Chief Executive Officer (CEO)
Positions within TAV Airports
Dr. Sani ŞenerSenior Management
Chief Financial Officer (CFO)Murat UluğBusiness Development DirectorSerkan KaptanHuman Resources DirectorÖzlem TekayInternal Audit DirectorAltuğ KoraltanOperations DirectorMurat ÖrnekolBusiness Development Director (Subsidiaries)Haluk Bilgi
Airport GMsGM, TAV IstanbulKemal Ünlü
Strategy DirectorWaleed YoussefGeneral SecretaryErsagun YücelLegal CounselBanu Pektaş
p ( )g
GM, TAV IzmirErkan BalcıGM,TAV EsenbogaNuray DemirerGM, TAV TunisieErsel GöralGM, TAV Georgia Mete Erkal
Service Companies GMsService Companies GMsGM, ATUErsan ArcanGM, BTASadettin CesurGM, HAVASMüjdat YücelGM, TAV Security Yusuf AcıbiberGM TAV ITUğur Yiğiter
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GM, TAV ITUğur YiğiterGM, TAV O&MEda Bildiricioğlu
Disclaimer
This presentation does not constitute an offer to sell or the solicitation of an offer to buy or acquire any shares of TAV HavalimanlariHolding A.Ş. (the "Company") in any jurisdiction or an inducement to enter into investment activity. No information set out in this doc ment or referred to in s ch other ritten or oral information ill form the basis of an contractdocument 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 noresponsibility 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 madethe 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
t l lt t diff t i ll Th i k d t i ti i l d th f t h i b i thmay 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 statementsperformance. As a result, you are cautioned not to place reliance on such forward looking statements.
Information in this presentation was prepared as of 30 September, 2009.
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