TAVHL Management Presentation

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TAVHL Management Presentation

  1. 1. TAV Airports Holding Management Presentation December 2012
  2. 2. Contents PageOperational and Financial Highlights 3Appendix 20 2
  3. 3. TAV Airports Holding Airport Companies Service Companies Atatürk (100%) ATÜ (50%) Esenboğa (100%) BTA (67%) Adnan Menderes Havaş (100%) (100%) Gazipaşa (100%) TGS (50%) Tbilisi & Batumi Havaş Europe (76%) (67%) Monastir & O&M (100%) Enfidha (67%) Skopje & Ohrid (100%) IT (99%) Latvia (100%) Security (100%) Medinah (33%) 3
  4. 4. TAV Airports Overview Food and Ground Airports Duty Free Others Beverage Handling Turkey ATÜ (50%) BTA (67%) HAVAŞ (100%) O&M, IT and Security   Operating in Turkey,  Major ground handler in  TAV O&M (100%): Istanbul Ataturk Airport  Largest duty free operator (100%), in Turkey Georgia, Macedonia, and Turkey with a c.65% (1) Commercial area Tunisia share  Ankara Esenboğa Airport allocations & lounges, travel  Partner with Unifree –  Operates Istanbul Airport (100%), owned by Heinemann,  Operates in 24 airports in agency services, TAV Passport Hotel (131 rooms) Turkey including Istanbul,  Izmir Adnan Menderes Airport leading German travel (100%),  Total seating capacity of Ankara, Izmir and Antalya retailer (Travel Value)  TAV IT (99%): 12.500 at 146 points  TGS (%50) (2) operates in  Gazipasa Airport (100%)  Operating in Turkey, Airport IT services  Bakery & pastry factory Istanbul (AHL&SGA), Georgia Georgia, Tunisia, Ankara, Izmir, Antalya and Macedonia and Latvia serving in Turkey  Tbilisi and Batumi Airports Adana  TAV Security (100%): (76%)  BTA Marine (50%) is the  %67 partner of Havaş Security service provider in Tunisia F&B operator of Istanbul Europe, operating in Riga, Istanbul, Ankara , Izmir and Deniz Otobusleri (IDO)  Monastir and Enfidha Airports Helsinki, Stockholm and Gazipasa (67%) Germany Macedonia  TAV Latvia (100%):  Skopje and Ohrid Airports Commercial area (100%) management in Riga Airport Saudi Arabia  Medinah Airport (33%) 2011 Revenues/EBITDA(3) (€m) 498/198 208/21 81/6 197/34 66/-2(1) Based on number of flights for 2011(2) TGS started operations in January 2010 4(3) Revenues and EBITDA represent the proportional interest of these companies in TAV Airports (50% of ATÜ revenues) (before eliminations)
  5. 5. Aéroports de Paris Acquired 38% of TAV Airports Aéroports de Paris (ADP) is one of the leading European airport groups  EUR 2,502mm revenue and EUR 972mm EBITDA in 2011  88mm pax in Paris (CDG and ORY) + 40mm Pax under management in 9 countries  Over 9,100 professionals ADP acquired  38% of TAV Airports for a total consideration of USD 874mm (TRL 11.3 per share) Senior management team of TAV Airports to remain in place and committed to the business post-transaction, Deputy CEO appointed by ADP Board structure is 3 Tepe&Akfen, 3 ADP, CEO and 4 independents (formerly 3 Tepe, 3 Akfen, CEO, 2 independents) Pre-Transaction Shareholder Structure Post-Transaction Shareholder Structure (1) 8.1% (2) 8.1% (1) (3) (6) 26.1% 2.0% (5) 38.0% (4) 40.3% 3.5% (2) (5) (4) 40.3% (3) 26.1% 3.5% 4.0% 1. Tepe Insaat Sanayi A.Ş. 3. Sera Yapi Endustrisi A.Ş. Turkish integrated conglomerate focused on infrastructure and Focused on construction in Turkey & MENA region construction 4. Other Non-floating 5. Free Float 2. Akfen Holding A.Ş. 6. Aéroports De Paris* Holding company operating in the infrastructure, construction, seaport, Internationally acclaimed airport operating company with global operations REIT and energy sector *Through Tank ÖWA alpha GmbH 5
  6. 6. ADP – TAV Airports: A Global Footprint A platform of 37 airports under management representing 180m Pax 13 Regional airports France Schiphol Group (8%) Liège (25.6%) Macedonia (100%) Georgia (76%) Mexico North Central (25.5%)¹  Paris-CDG: 58mm pax  48mm pax  0.6mm tons of freight  Skopje & Ohrid: 0.8mm pax  Tbilisi & Batumi: 1.2mm pax  14mm pax  Paris-Orly: 25mm pax  Industrial cooperation  Strategic partner  Concession operator  Concession operator  Operator & Strategic partner  Owner and operator Turkey  Istanbul Ataturk: 37.5mm pax  Ankara: 8.5mm pax  Izmir: 2.5mm pax  Gazipasa  Concession operator Amman – Jordan (9.5%)  6mm pax  Management contract  Strategic partner Cambodian Airports Conakry Airport (29%)  Phnom Penh & Siam Reap:  0.2mm pax 3mm pax  Operator  Assistance in management TAV Airports Algier Airport Tunisia (67%) Jeddah (Hajj Terminal) – Mauritius (10%) Medinah (Saudi Arabia) (33%)  4.4mm pax  Enfidha & Monastir Saudi Arabia  2.6mm pax  Concession operator ADP  Operator 2.3mm pax  5mm pax  Operator  Concession operator  Management contract  Strategic partnerSource: ADP, TAV AirportsNotes: Mexico: ADP holds a 25.5% stake in the Mexican company Servicios de Tecnología Aeroportuaria (SETA), which itself has a 16.7% stake in holding company Grupo Aeroportuario del Centro Norte (GACN), which controls 13 airports in thenorth and centre of Mexico, including Monterrey International AirportPassenger numbers are for FY 2011. 6
  7. 7. Traffic Performance November January-November LTM FY (1) Chg Dec11 Istanbul International Pax (m)Passengers 2011 2012 Chg % 2011 2012 2010 2011 Chg % % Nov12Ataturk Airport 3.101.047 3.709.645 20% 34.443.368 41.454.675 20% 44.463.494 32,143,819 37,452,187 17%International 2.009.961 2.484.697 24% 22.079.185 27.354.223 24% 29.122.873 20,342,986 23,847,835 17% 2012 2011 2010Domestic 1.091.086 1.224.948 12% 12.364.183 14.100.452 14% 15.340.621 11,800,833 13,604,352 15%Esenboga Airport (2) 719.290 752.811 5% 7.776.338 8.518.624 10% 9.262.935 7,763,914 8,520,649 10% 3,50 +24% YTDInternational 107.519 122.137 14% 1.317.845 1.480.456 12% 1.550.114 1,328,693 1,387,503 4% 3,00Domestic 611.771 630.674 3% 6.458.493 7.038.168 9% 7.712.821 6,435,221 7,133,146 11%Izmir Airport (3) 624.653 661.371 6% 7.934.895 8.724.092 10% 9.332.008 7,485,098 8,542,811 14% 2,50International 118.999 95.975 -19% 2.311.659 2.333.216 1% 2.485.891 2,127,488 2,464,334 16% 2,00Domestic 505.654 565.396 12% 5.623.236 6.390.876 14% 6.846.117 5,357,610 6,078,477 13% (5)Medinah 341.497 515.435 51% 3.266.964 4.392.505 34% 4.673.049 3,230,845 3,547,089 10% 1,50Tunisia 101.806 116.939 15% 2.211.013 3.245.893 47% 3.324.011 3,916,977 2,289,131 -42% 1,00Georgia 86.400 99.310 15% 1.103.070 1.289.968 17% 1.377.820 910,229 1,190,922 31%Macedonia 57.548 63.322 10% 774.050 846.310 9% 910.424 730,095 838,164 15% 0,50TAV TOTAL (4) 4.185.090 5.918.833 41% 48.619.498 66.194.524 36% 70.330.413 47,592,522 52,755,387 11%International 2.476.767 3.371.055 36% 29.725.455 37.929.993 28% 40.147.032 29,308,503 31,942,494 9% 0,00 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecDomestic 1.708.323 2.547.778 49% 18.894.043 28.264.531 50% 30.183.381 18,284,019 20,812,893 14% November January-November LTM FY TAV Total Pax (m) (2) Chg Dec 11ATM 2011 2012 Chg % 2011 2012 2010 2011 Chg % % Nov 12Ataturk Airport 25.336 29.176 15% 276.086 319.458 16% 349.180 273,826 305,808 12%International 16.961 19.822 17% 180.582 211.644 17% 230.968 178,862 199,906 12%Domestic 8.375 9.354 12% 95.504 107.814 13% 118.212 94,964 105,902 12% 2012 2011 2010Esenboga Airport (2) 6.225 6.149 -1% 65.561 68.658 5% 75.341 63,391 72,244 14%International 892 1.044 17% 10.986 12.025 9% 12.889 11,734 11,850 1% 8,00 +36% YTDDomestic 5.333 5.105 -4% 54.575 56.633 4% 62.452 51,657 60,394 17% 7,00Izmir Airport (3) 4.649 4.870 5% 57.932 62.463 8% 67.610 57,848 63,079 9%International 905 708 -22% 16.765 16.520 -1% 17.059 16,184 17,304 7% 6,00Domestic 3.744 4.162 11% 41.167 45.943 12% 50.551 41,664 45,775 10%Medinah(5) 3.144 4.349 38% 30.353 34.412 13% 36.994 5,00 31,278 32,935 5%Tunisia 1.214 1.234 2% 19.841 26.485 33% 27.449 31,801 20,805 -35% 4,00Georgia 1.822 1.700 -7% 21.270 21.918 3% 23.762 18,746 23,114 23%Macedonia 847 826 -2% 10.970 10.431 -5% 11.339 11,802 11,878 1% 3,00TAV TOTAL (4) 36.349 48.304 33% 410.493 527.637 29% 568.297 415,750 451,153 9% 2,00International 22.337 28.038 26% 256.992 305.735 19% 329.866 266,991 281,123 5%Domestic 14.012 20.266 45% 153.501 221.902 45% 238.431 148,759 170,030 14% 1,00 0,00Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAHNote: DHMİ figures for 2012 are tentative. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec(1) Both departing and arriving passengers, including transfer pax(2) Commercial flights only(3) TAV started to serve domestic passengers at Izmir Airport in January 2012(4) 2011 totals do not include Medinah and Izmir domestic traffic data while 2012 1H totals do not include Medinah data 7(5) TAV started to serve Medinah passengers on July 1, 2012
  8. 8. Istanbul Atatürk Airport Map of Istanbul International ATM (%) Domestic ATM (%) Pegasus Other 3,2 23,2 Atlas 10,2 Air France Onur 1,2 13,6 Onur 1,3 Lufthansa 2,0 Turkish Turkish Atlas 2,3 70,1 73,0 Source: TAV Istanbul Istanbul Atatürk Airport – A Natural Hub Istanbul Historical Pax (m) International Domestic 40 35 CAGR (2006-11) 12% 13,6 30 11,8 11,4 25 11,5 20 9,6 15 9,1 23,8 20,3 18,4 10 17,1 13,6 12,2 5 0 2006 2007 2008 2009 2010 2011 Source: DHMI 8
  9. 9. Istanbul Capacity Usage & Southern Winds Istanbul Hourly ATM Concentration (1H 2012) Istanbul Southern Winds BEFORE65 Total Arrival Departure Intersection of take-off and landing paths Declared Capacity55 TAKE-OFF45 SOUTHERN WINDS352515 5 North-5 09-10 22-23 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 23-24 Istanbul Southern Winds AFTER Source: TAV Istanbul, DHMI  Istanbul runway* usage is still below the declared 55 TAKE-OFF ATM/hour  Peak hours (09:00 to 24:00) are used efficiently to minimize local peaks SOUTHERN WINDS  ATC used to slow down take-off and landing during southern winds due to the intersection of the take-off and landing paths  The new procedures have reversed take-off direction during suitable southern winds to solve the problem North*Runways are operated by DHMI in Istanbul Atatürk Airport, TAV Airports only manages the terminals 9
  10. 10. Istanbul ATM Capacity vs Peers with Similar Runway Structure Istanbul Atatürk Airport Declared Capacities*  Istanbul Atatürk: 55 ATM/hr  Zurich Airport: 68 ATM/hr  Vienna Airport : 72 ATM/hr Zurich Airport Vienna Airport*State Airports Authority (DHMI), Zurich Airport, Vienna Airport 10
  11. 11. Recently Won Projects Izmir and Medinah Projects BTA Marine (IDO) IZMIR MEDINAH  BTA was awarded the F&B operations of Istanbul Deniz Otobusleri AS (IDO, with c.50m pax) and formed a 50-50 JV with TASS (operator of IDO) Izmir Airport International Prince Mohammed Bin Abdulaziz Operations Right Terminal, CIP, Domestic Terminal Airport structures  BTA Marine has gradually taken over the current F&B sales points and the auxiliary structures since September 2011  BTA Marine will serve at 82 outlets in 21 Terminals, 17 Vehicle Concession Expiry 2032 2037 Ferries and 8 Fast Ferries, comprising; TAV Stake 100% 33%  50 BTA Marine owned and operated Sales Points  7 International Fast Food Restaurant (Mc Donalds) €250mn ~$1bn  22 International Coffee Shop Chain (Nero) Start: 2012 Operations started in June 2012  3 Other Tenants New Terminal Total Area Increase: 28.500 sqm to Total terminal capacity will Increase 204.500 sqm from 4mn to 8mn €15 per international pax and €3 SAR 80 from departing and arriving Pax Fees Tbilisi Concession Extension per domestic international pax. No volume guarantee, except for Volume Guarantee existing international terminal No volume guarantee guarantee valid until January 2015  TAV Georgia will renovate the present unused runway to comply Total concession rent for entire Total concession rent for entire with Code F operating period (until 2032) operating period (until 2037): 54.5%  The total CAPEX for the renovation will be $65 mn €610mn (excluding VAT) of total revenues  In return for the investment TAV Georgia will extend its concession for 10 years and 9 months until November 2037 Lease payment schedule: Concession/Lease • 2% paid in 4Q 2011 (€12m) The concession charge reduced to • 3% paid in 1Q 2012 (€18mn) 27.3 % for the first two years that • First instalment to be paid on follow the completion of the 1 January 2013 (€29mn) construction. • afterwards annually on first business day of each year. 11
  12. 12. Concession Overview Lease/ 2011 fee/pax fee/pax Volume Airport Type/Expire TAV Stake Scope Concession Net Debt (1) Pax(mppa) Intl Dom. Guarantee Fee Lease US$15 $140m/yr + Istanbul Ataturk 100% Terminal 37.5 €3 No €121m (Jan. 2021) € 2.5 (Transfer) VAT BOT 0.6m Dom. , Ankara Esenboga 100% Terminal 8.5 €15 €3 0.75m Intl for - €93m (May 2023) 2007+%5 p.a BOT+Lease €29m starting 1.0m Int’l for Izmir A.Menderes 100% Terminal 8.5 €15 €3 from 2013 (6) -€13m (Dec. 2032) 2006 + %3 p.a. Lease Gazipasa 100% Airport - €5 TL4 No $50,000+VAT(5) €18m (May 2034) BOT Tbilisi 76% Airport 1.1 US$22 US$6 No - €12m (Nov. 2037) BOT Batumi 76% Airport 0.1 US$12 US$7 No - €1m (Aug. 2027) 11-26% of BOT+Concession Monastir&Enfidha 67% Airport 2.3 €9 €1 No revenues from €349m (May 2047) 2010 to 2047 BOT+Concession €17.5 in 15% of the Skopje & Ohrid 100% Airport 0.8 Skopje, €16.2 - No gross annual €60m (March 2030) in Ohrid turnover (2) BTO+Concession Medinah 33% Airport 3.5 SAR 80 (3) - No 54.5%(4) €8m (2037) 1) As of 30 September 2012 2) The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers 3) SAR 80 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years 4) The concession charge will be reduced to 27.3 % for the first two years that follow the completion of the construction. 5) TAV Gazipaşa shall make a yearly rent payent of US$ 50,000 + VAT as a fixed amount, until the end of the operation period; as well as a share of 65% of the net profit to the DHMI. 6) Cash Basis 12
  13. 13. Financial Overview (in m€, unless stated otherwise) 9M 2011 9M 2012 Chg % 2010 2011 Chg % Revenues* 666 818 23% 785 881 12% EBITDA* 205 253 23% 212 257 21% EBITDA* margin (%) 30.8% 30.9% 0.1 ppt 27.0% 29.2% 2.2 ppt FX Gain (Loss) -14 7 nm 6 (5) n.m. Deferred Tax -11 10 nm 22 (4) n.m. Net Income 35 102 191% 50 53 6% Net Cash Provided from Operating Activities 241 257 7% 336 355 6% Capex -92 -64 -31% (119) (106) -11% Free Cash Flow 149 194 30% 217 250 15% Shareholders’ Equity 452 524 16% 437 475 9% Net Debt 832 818 -2% 821 792 -4% Average number of employees 19,847 21,890 10% 17,535 19,838 13% Number of passengers (m) 40 54 35% 47.6 52.8 11% - International 24 31 27% 29.3 31.9 9% - Domestic 15 23 49% 18.3 20.8 14% Consolidated Revenue (€m) EBITDA (€m) Net Profit (€m) 23% 191% 23% 818 253 102 666 205 35 9M11 9M12 9M11 9M12 9M11 9M12• Unless otherwise noted, all Revenues, EBITDA and EBITDAR in this presentation are adjusted to include guaranteed passenger fees and to exclude construction revenues and costs (IFRIC 12 Reversal). 13
  14. 14. Revenue, EBITDA and OPEX Breakdown Consolidated Revenue (%) EBITDA (%) Opex (%) Catering Services rendered D&A Istanbul Other Airports ATU Duty-free Other Concession rent Duty-free Aviation Ground-handling F&B Other Personnel BTA HAVAŞ Other Services 3 -1 9 16 13 3 7 2 12 0 9 18 33 342010 92011 6 3 31 8 35 7 6 10 51 53 11 19 22 27 16 26 21 24 15 19 24 Duty-free Aviation Ground-handling F&B Other Istanbul Other Airports ATU BTA HAVAŞ Other Services Catering Services rendered D&A Duty-free Other Concession rent Personnel 14% 8% -1% 3% 9% 4% 15% 32% 0% 3% 8% 7% 15% 9% 9M11 32% 8% 35% 10% 9M12 6% 35% 3% 7% 50% 11% 12% 52% 22% 20% 14% 25% 26% 20% 29% 15% 26% 17% 14
  15. 15. Net Debt Debt Composition Debt Schedule (€m, September 2012)Net Debt (eop €m) September 2012 June 2012 September 2011Airports 648 720 729 Istanbul 121 185 177 397 Ankara 93 98 104 Other Izmir (including Tav EGE) (13) (7) 10 TAV Holding - solo Tunisia 349 355 360 283 Havaş Gazipasa 18 18 16 12 12 14 TAV Gazipaşa Georgia Macedonia 60 59 48 184 TAV Macedonia Medinah 8 0 0 ATU 180 126 123Services 170 176 103 TAV Tbilisi ATU (50%) 5 14 19 TAV Esenboğa BTA (5) (3) (5) TAV Tunisie Havas 63 68 59 TAV Istanbul Others 107 96 30Total 818 896 832 1- years 2-years 3- years 4- years 5- years 5+ years  Borrowing through long term project finance facilities  All project finance facilities are back-ended and well-aligned with the future cash flows of the SPV 15
  16. 16. CAPEX Quarterly Capex (€m) Capex Composition (€m, 9M 2012) property and equipment airport operation right intangible assets 120 Other 2% Georgia 3% Enfidha Airport Capex Macedonia Capex 100 80 Turkey 39% 60 64 40 Saudi Arabia 56% 20 0 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 -20 16
  17. 17. FX Exposure of Operations (9M11) Revenues (1) Opex (1)(2) €68m €52m €138m €109m Other 7% USD 14% Other 7% USD 14% €349m €256m €317m TL 33% €966m €442m €766m TL 46% EUR 33% EUR 46% Concession Rent Expense Gross Debt €20m €7m €55m €4m €12m TL 1% SAR 4% USD 2% €1.211m SAR 4% €91m EUR 12% €107m €1.294m USD 85% EUR 94%(1) Combined figures, pre-eliminations. 17(2) Includes concession rent expenses (€107m) and depreciation (€53m)
  18. 18. 9M 2012 Comparative Financials Revenue (€m) 9M12 9M11 Chg% 2010 2011 Chg% 9M11 – 9M12 Revenue Bridge (€m) Airports 477.7 380.7 25% 471 498 6% Istanbul 307.7 260.2 18% 319 344 8% Ankara 36.0 33.3 8% 38 42 11% 4,8 2,7 0,8 0,4 7,6 6,8 9,3 Izmir (including TAV Ege) 44.7 28.6 56% 33 35 7% 10,7 10,2 -25,4 14,5 Tunisia 41.5 27.0 54% 46 35 -24% 26,7 Gazipasa 0.4 0.1 652% 0 0 nm 35,7 Georgia 23.2 18.5 26% 22 25 14% 818 47,5 Macedonia 13.8 13.0 6% 14 17 19% Medinah 10.2 0.0 nm - - - 666 Services 488.1 407.4 20% 469 552 18% ATU (50%) 187.3 151.6 24% 170 208 22% BTA 86.2 59.5 45% 75 81 8% Havas 161.6 150.9 7% 163 197 21% Others 53.0 45.4 17% 61 66 9% BTA HAVAS Tbilisi & Gazipasa Ege Ankara Macedonia Istanbul Medinah Other Izmir 9M11 9M12 ATU (50%) Tunisia Eliminations Batumi Total 965.7 788.1 23% 940 1050 12% Elimination -147.9 -122.5 nm (155) (169) Consolidated 817.9 665.6 23% 785 881 12% EBITDA (€m) 9M12 9M11 Chg% 2010 2011 Chg% 9M11 – 9M12 EBITDA Bridge (€m) Airports 206.5 155.0 33% 170 198 16% Istanbul 131.8 102.4 29% 111 136 23% Ankara 18.9 19.1 -1% 15 20 29% 2.0 0.2 0.1 -0.2 5.0 3.8 3.7 1.3 Izmir (incl. TAV Ege) 21.1 19.1 11% 19 22 13% 14.7 -50% -2.6 -9.7 Tunisia 18.0 3.4 438% 12 6 29.5 Gazipasa -0.6 -0.7 nm (1) (1) nm Georgia 13.7 9.9 39% 11 13 17% Macedonia 2.2 1.9 11% 3 2 -19% Medinah 1.3 0.0 nm - - - 253 205 Services 46.9 50.5 -7% 43 60 38% ATU (50%) 19.4 14.4 34% 15 21 38% BTA 9.6 5.8 64% 7 6 -16% Havas 21.3 31.1 -31% 26 34 34% Havas BTA 9M11 Gazipasa 9M12 Macedonia Ankara Others Tunisia Tbilisi & Batumi Izmir (inc. ATU(50%) Istanbul Medinah domestic) Others -3.4 -0.8 nm (5) (2) -63% Total 253.4 205.5 23% 214 258 21% Elimination -0.4 -0.6 nm (2) (1) Consolidated 253.0 204.9 23% 212 257 21% 18
  19. 19. Exceptional Growth Sustained Revenues (€m) EBITDA (€m) CAGR (2006-11) CAGR (2006-11) 18% 881 55% 257 785 212 627 640 167 508 141 402 77 29 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011 Passenger (m) Average Number of Employees CAGR (2006-11) CAGR (2006-11) 17% 53 19% 19.838 48 17.535 41 42 12.194 30 11.289 9.473 23 8.146 2006 2007 2008 2009 2010 2011 2006 2007 2008 2009 2010 2011Source: DHMI 19
  20. 20. Appendix PageOverview 21Operations 31References 46 20
  21. 21. Investment Highlights  Turkey is the fastest growing aviation market in Europe  Passenger growth of 15% p.a. during 2002-2011 Attractive market with  Projected passenger growth of 11% p.a. during 2009-2023(1) strong growth prospects  Access to fast growing MENA region  Istanbul is the most efficient hub for Europe, MENA Region (2) Leading airport operator  Diversified, balanced portfolio with leading market positions with diversified portfolio  #1 airport terminal operator in Turkey  12 airports operating in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia and Latvia (large catchment areas) Strong financial  Strong momentum with EBITDA posting 55% CAGR between 2006 and 2011 performance and cash  High earnings visibility given clear / agreed regulatory framework flow generation  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  Well-positioned to benefit from further organic and inorganic growth “Platform play”(1) Source: Turkey’s Ministry of Transport(2) Determining Hub Efficiency in Europe, MIiddle East and North Afirca a comparative study, E. Nur Günay, Şükrü Nenem 21
  22. 22. Worldwide traffic outlook up to 2030 Passenger traffic growth by airline domicile Europe CIS 2011–2030 2021–2030 4.1% 3.9% 2011–2030 2021–2030 5.4% 4.8% North America 2011–2030 2021–2030 Middle East 3.3% 3.3% 2011–2030 2021–2030 7.3% 4.9% Africa 2011–2030 2021–2030 Latin America Asia-Pacific 2011–2030 2021–2030 5.1% 4.9% 2011–2030 2021–2030 5.9% 5.2% 5.4% 5.1% World 2011–2030 2021–2030 4.7% 4.4% The region where TAV operates is projected to experience the highest passenger traffic growth worldwide over the next 20 yearsSource: Airbus Global Markets Outlook (2011-2030) 22
  23. 23. Growth of the Turkish Aviation Market and TAV Airports Turkish Aviation Market (mPax) Number of Aircraft in Turkey Domestic Intll total CAGR (2002-11) 349 CAGR (2002-11) 332 14% 15% 118 299 259 270 103 250 86 240 79 202 70 162 65 57 45 110 58 59 34 34 51 53 38 44 41 44 36 36 31 31 34 32 25 25 21 9 9 14 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 TAV Airports Passenger Traffic (mPax)  Deregulation of the domestic market in 2003 CAGR (2002-11) 53 22% 48  2nd largest country in Europe in terms of population: 41 42 75m (1) 30  In 2011, foreign visitors reached 31m (2) 23 17  Limited alternative transport infrastructure 9 9 10  Aircraft number in Turkey expected to reach 750 in 2023 (3) 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Ministry of Transport 23
  24. 24. Tourism Top visitors to Turkey (m tourists) Top Tourism Destinations (m tourists)Countries 2011 2010 Chg 2009 Countries 2000 2005 2006 2007 2008 2009 2010 2011Germany 4.8 4.4 10% 4.5 1-France 77.2 75 77.9 80.9 79.2 76.8 76.8 79.5Russia 3.5 3.1 12% 2.7 2-USA 51.2 49.2 51 56 57.9 55.0 59.7 62.3UK 2.6 2.7 -3% 2.4 3-China 31.2 46.8 49.9 54.7 53.0 50.9 55.7 57.6Iran 1.9 1.9 0% 1.4 4-Spain 46.4 55.9 58 58.7 57.2 52.2 52.7 56.7Bulgaria 1.5 1.4 4% 1.4 5-Italy 41.2 36.5 41.1 43.7 42.7 43.2 43.6 46.1Georgia 1.2 1.1 14% 1.0 6-Turkey 9.6 20.3 18.9 22.2 25.0 25.5 27.0 29.3Netherlands 1.2 1.1 4% 1.1France 1.1 0.9 23% 0.9 7-UK 23.2 28 30.7 30.9 30.1 28.2 28.1 29.2Syria 1.0 0.9 8% 0.5 8-Germany 19 21.5 23.6 24.4 24.9 24.2 26.9 28.4U.S.A 0.8 0.6 18% 0.7 9-Malaysia 10.2 16.4 17.5 21 22.1 23.6 24.6 24.7Other 12.0 10.5 14% 10.5 10-Mexico 20.6 21.9 21.4 21.4 22.6 21.5 22.4 23.4TOTAL 31.5 28.6 10% 27.1 World 682 801 846 900 919 882 940 983Source : Ministry of Culture and Tourism Source : UNWTO Visitors to Turkey increased 10% in 2011. Turkey is the 6th most visited country in the world !! 24
  25. 25. Strong Growing Presence in the Broader Region Asset overview / catchment area No.1 Airport operator in Turkey Latvia  TAV operates in Turkey’s 3 largest cities  Since IPO TAV has expanded into the broader region, winning concessions and/or BOTs in Tunisia, Macedonia, Turkey (Gazipaşa), Georgia (Batumi) and most recently Saudi Arabia (Medinah) Batumi 2011 Passengers of 5 Largest Turkish Airports (mPax) Istanbul Tbilisi Tbilisi Enfidha Ankara Ankara 37.5 Gazipaşa Izmir 25.1 Skopje Ohrid Medinah 12.7 Monastir 8.5 8.5 AHL Antalya SAW Ankara Izmir TAV is the leading airport operator in the region (55% market share in Turkey) and its airports/terminals handling 31m passengers in 1H 2012.Source: DHMI 25
  26. 26. Integrated Unique Business Model Airport Companies Service Companies High profitability High earnings visibility  Service companies have lucrative margins  Pax fees regulated by authorities and set until end of concession  High potential to increase per pax spending & penetration  Revenue guarantees in Ankara İzmir  ATM’s drive airside and ground handling revenues Streamlining  360 degree control facilitates best practice in performance Operating Leverage  360 degree data flow enables constant innovation  Predominantly fixed cost base Margin Conservation High Cash Flow Conversion  All value added is preserved inside the group.  No hard assets, brand new portfolio Integration Operational Excellence Financial Excellence 26
  27. 27. TAV vs Other Airport Operators TAV Airports Counterparts  No state stake  Active state participation Shareholder Structure  No foreign ownership limit  Foreign ownership limits  Integrated business model with service  Active mainly in airport/terminal companies active in every step of the value management with some participation in Business Model chain airport services  Ownership of the operational rights of the  Mostly own the airport portfolio airport portfolio over a predetermined period through BOTs and concessions Portfolio Ownership  If BOT, high upfront capex with minimal or  Regular capital expenditure with bulk no mandatory capex throughout the investments time-to-time operation period Capital Expenditure  If lease, annual rent payment 27

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