TAV AIRPORTS HOLDINGir.tav.aero/uploads/documents/TAVHL_Investor... · 2020. 4. 3. · O&M, IT and...
Transcript of TAV AIRPORTS HOLDINGir.tav.aero/uploads/documents/TAVHL_Investor... · 2020. 4. 3. · O&M, IT and...
TAV AIRPORTS HOLDING
March 2011
Page
Overview 1
Financial Overview 23
Operations 33
Conclusion 54
2
Airport Companies
Ataturk Airport (100%)
Esenboga Airport (100%)
Adnan Menderes
Airport (100%)
Gazipasa Airport (100%)
Tbilisi (%66) & Batumi (60%)
Monastir & Enfidha (67%)
Skopje & Ohrid
(100%)
Service Companies
ATÜ (50%)
BTA (67%)
HAVAŞ
(65%)
TAV O&M (100%)
TAV IT (99%)
TAV Security (67%)
TGS (%50)
North Hub
Services
(%50)
TAV Airports Holding Co.
3
Heinemann
Bilintur
Tepe Savunma ve Guvenlik
IFC (15%)
PAIDF (18%)
HSBC(28%)
Is Private Equity(6,7%)
O&M, IT and Security
TAV O&M (100%):
Commercial area
allocations &
CIP/VIP,travel agency
services
TAV IT (99%):
Airport IT services
(FIDS,FMS,etc)
TAV Security (67%):
Security service
provider in Istanbul,
Ankara , Izmir and
Gazipasa
Airports Duty FreeFood and
Beverage
Ground
HandlingOthers
Turkey
Istanbul Ataturk Airport (100%),
Ankara Esenboğa Airport (100%),
Izmir Adnan Menderes Airport (Intl. Terminal) (100%),
Gazipasa Airport (1) (100%)
Georgia
Tbilisi International Airport(66%) and Batumi Airport
Tunisia
Monastir and Enfidha Airports(2) (67%)
Macedonia
Skopje, Ohrid and Shtip
Airports (3) (100%)
ATÜ (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 and Latvia
BTA (67%)
Operating in Turkey,
Georgia, Macedonia,
Tunisia and Latvia
Operates Istanbul Airport
Hotel (131 rooms)
Total seating capacity of
12.500 at144 points
Bakery & pastry factory
serving in Turkey
Revenues
2010 /
2009
(5)
Notes: (1) We had signed Gazipasa Airport concession agreement on January 7, 2008 and operations started on July 13, 2009.
(2) We started operations in Monastir Airport on January 1, 2008. Enfidha Airport (greenfield investment) started operations in December 2009.
(3) We are awarded the tender on September 2, 2008 and TAV commenced its operations as of 1 March, 2010.
(4) Based on number of flights for 2010
(5) Revenues represent the proportional interest of these companies in TAV Airports (50% of ATÜ revenues) (before eliminations)
Havaş (65%)
Major groundhandler in
Turkey with a c.65% (4)
share
Operates in 22 airports
in Turkey including
Istanbul (AHL&SGA),
Ankara, Izmir and
Antalya
*TGS(%50) operates in
Istanbul, Ankara, Izmir,
Antalya and Adana
%50 partner of North
Hub Services, operating
in Riga and Helsinki
*TGS started operations as of 1 January 2010
TAV Airports Overview4
€471m/377m €170m/145m €75m/59m €163m/126m €61m/66m
Ownership Structure (as of 31 December, 2010)
1. Tepe Insaat Sanayi A.Ş.
Turkish integrated conglomerate focused on infrastructure and
construction
2. Akfen Holding A.Ş.
Holding company operating in the construction, tourism, insurance
and energy sector
3. Sera Yapi Endustrisi A.Ş.
Focused on construction in Turkey & MENA region
4. Other Non-floating
5. Other Free Float
Shareholder Structure Founding Shareholders
Other shareholders
2.Akfen Holding A.Ş. has 14,466,267 (3.98%) shares in the free float
3. Sera Yapi Endustrisi ve Tic. Ltd. Sti. has 806,544 (0.22%) shares in the free float
-Morgan Stanley has 18.429.937 (5.07%) shares in the free float as of July 2010
-Schroders has 18.235.856 (5.02%) shares in the free float as of January 2011
- TAVHL effective free float is 40%
(1)26,1%
(2)26,1%
(3)4,2%
(4)3,5%
(5)40,1%
5
Investment Highlights
Diversified portfolio with leading market position
10 airports operating in Turkey, Georgia, Tunisia and Macedonia (large catchment
areas).
Distinctive business model with an integrated structure
Buoyant Turkish economy & young population strong pax growth
Agreed regulatory framework providing high visibility
Long-term concessions (Istanbul: 2021, Georgia: 2027, Macedonia: 2030, Tunisia:
2047)
Fixed cost base (operational leverage) and minimal ongoing capex high cash
flow conversion
Benefiting both organic and inorganic growth
Well positioned to win international concessions
Development of the service business (e.g. ATÜ, BTA, Havaş)
6
Diversified Portfolio
Clear Regulatory
Framework and
Earnings Visibility
Well
Positioned
for
Growth
Diversification into high growth markets
(Passenger number, million)
Large catchment areas in operation Operating 3 of the 4 largest airports in Turkey
Source: DHMI, Passenger figures for 2010
**TAV only operates the International Terminal, which had 2,1m passengers in 2010
Turkey
GeorgiaMacedonia
Tunisia
(Passenger number, million)
Source: TAV Tunisie, Georgian Authority, Macedonia Aviation Authority,
Passenger figures for 2010
Turkey
TAV is the leading airport operator in Turkey
The airport terminals which we operate in Turkey handled 42 million passengers in 2010
Istanbul is the largest business center in the region
Tunisia
The operation started as of January 1, 2008 in Tunisia Monastir Airport, which handled 3.9 million passengers in 2010.
The operation commenced in Tunisia Enfidha Airport following the completion of the construction (December 2009)
Georgia
TAV operates Tbilisi Airport and Batumi Airport in Georgia
Macedonia
TAV started operations at Skopje and Ohrid Airports in Macedonİa as of March 1, 2010.
7
İstanbul Antalya İzmir** Ankara
32,1
22,0
7,5 7,8
Tunisia Georgia Macedonia
3,92
0,91 0,73
8
Favourable Economic and Demographic Backdrop
Substantial market size
6th largest economy in Europe
16th largest economy in the world
Expected to beat the market
Sizable population with favourable
demographics
2nd largest population in Europe
Source: IMF
Average Projected Real GDP Growth during 2010-11
7,8
3,7
1,7
3,6 3,1
1,5
Turkey Emerging Europe EURO Area
2010 2011
28% 35%
64% 50%
8% 15%
Turkey EU
60+ 15-60 0-14
GDP Growth Rate
EUROPE
GDP: $18.0 trillion
Population: 588 mn
NORTH AFRICA
& MIDDLE EAST
GDP: $3.5 trillion
Population: 586 mn
RUSSIA & CIS
GDP: $1.3 trillion
Population: 142 mn
CAUCASIAN
GDP: $0.2 trillion
Population: 105 mn
Transportation junction between Europe, North Africa and Asia
Investment backyard with a GDP of $35 trillion and a population of 1.4 bn
Turkey has the 8th largest network across the world with 130 international
and 46 domestic routes.
Prime Location
9
10
Deregulation of the domestic market in 2003
2nd largest country in Europe in terms of population: 72.5m**
Limited alternative transport infrastructure
In 2010, foreign visitors reached 29m***
Turkish Aviation Market
Source: DHMI, **Turkstat, ***Ministry Culture and Tourism
9 9 1421
31 3236
41
50
25 2531
36 3438
44 44
5234 34
45
57
6570
7985
103
0
5
10
15
20
25
30
35
0
20
40
60
80
100
2002 2003 2004 2005 2006 2007 2008 2009 2010
Domestic Intl'l total Tourist Arrivals
11
110
162
202
240
259 250
270
300
347
Turkey 2002-2010
CAGR : 15%
Aircraft number in Turkey will reach 750 in 2023
Aircraft Growth in Turkey
2002 2003 2004 2005 2006 2007 2008 2009 2010
Turkish Aviation Market and TAV Airports 12
CAGR 15%
2002-2010
CAGR 24%
2002-2010
Total Passenger Traffic of Turkish Aviation Market by year (mn)
Total Passenger Traffic of TAV Airports by year (mn)
2002 2003 2004 2005 2006 2007 2008 2009 2010
9 9 10
17
23
30
41 42
48
2002 2003 2004 2005 2006 2007 2008 2009 2010
34 34
45
5765
7079
86
103
13
Airports 2009 2010 09/10 (%)Jan-
Feb10
Jan-
Feb11%
Istanbul Ataturk 29,8 32,1 8% 4,4 4,7 7%
Int’l 18,4 20,3 11% 2,6 2,9 11%
Dom. 11,4 11,8 3% 1,8 1,8 1%
Ankara Esenboga 6,1 7,8 28% 1,0 1,3 22%
Int’l 1,1 1,3 21% 0,1 0,2 32%
Dom. 5,0 6,4 29% 0,9 1,1 21%
Izmir A.Mend. (int’l) 1,7 2,1 28% 0,1 0,2 32%
Monastir Airport(ınc. Enfidha) 3,8 3,92 4% 0,2 0,1 -43%
Georgia (inc. Batumi) 0,77 0,91 18% 0,1 0,1 30%
Macedonia(Skopje&Ohrid)** 0,64 0,73 14% 0,1 0,1 10%
TAV Total *** 42,1 47,6 13% 5,9 6,5 9%
Int’l 25,7 29,3 14% 3,2 3,5 10%
Dom. 16,4 18,3 11% 2,7 2,9 8%
Airports 2009 2010 09/10 (%)Jan-
Feb10
Jan-
Feb11%
Istanbul Ataturk 265,8 273,7 3% 40,8 42,8 5%
Int’l 169,9 178,8 5% 26,3 28,3 8%
Dom. 95,8 94,9 -1% 14,5 14,5 1%
Ankara Esenboga 51,3 63,4 24% 8,8 10,8 23%
Int’l 10,1 11,7 16% 1,4 1,6 14%
Dom. 41,2 51,6 25% 7,4 9,3 26%
Izmir A.Mend. (int’l) 13,1 16,1 23% 1,3 1,4 4%
Monastir Airport(Inc. Enfidha) 30,4 31,8 5% 1,8 1,3 -27%
Georgia (inc. Batumi) 15,6 18,7 20% 2,2 3,0 34%
Macedonia(Skopje&Ohrid)** 12,8 12,8 0% 1,7 1,5 -16%
TAV Total *** 376,2 416,6 11% 56,6 60,8 7%
Int’l 237,4 267,9 13% 34,7 36,7 6%
Dom. 138,8 148,7 7% 22,0 24,2 10%
In 2010 (January – December Period)
TAV Total Passenger Istanbul Ataturk Airport Int’l Passenger
47,6m 20,3m13% 11%
TAV Traffic Performance
TAV Passenger Figures (million) TAV Air Traffic Movements (‘000)
Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie,TAV Macedonia** Operation commencement date: March 01, 2010
*** TAV 2009 traffic figures do not include Macedonia
14
Duty Free Spend Per Pax (€) 2008 2009 % 2010 %
ATU Average 15,8 14,7 -7% 14,5 -2%
Duty Free Performance
Sales of duty free goods increased by 17% from
€142 million in 2009 to €166 million in 2010 on the
back of the strong international passenger growth.
Against the limitations on duty free purchases set by
the Undersecretariat of Customs, effective between
October 2009 and September 2010, duty free sales
grew in-line with the passenger growth. Note that the
Customs Undersecretariat alleviated the limits as of
September 6th , positive impact of which has been seen
only four months of 2010.
Revenue €m
Average per passenger spending decreased by
2% YoY in 2010, mainly due to dilutive impact of
commencement of Macedonia and Tunisia operations
and also increase in transit / transfer traffic.
dilutive impact
and change in
Customs Law
2008 2009 2010
3329
33
3937
4140 40
46
37 36
46
1Q 2Q 3Q 4Q
14214917%
166-4%
15
Customs Law
Products* 07.10.2009-05.09.2010 As of 06.09.2010
Tobacco Products
2 cartoons of cigarettes OR other
tobacco products at their own
limits
3 cartoons of cigarettes AND
other tobacco products at their
own limits
Alcohol
- Beverages with more than 22%
alcohol such as whiskey and raki1 Liter OR 1 Liter AND
- Beverages with less than 22% alcohol
such as wine and champaigne2 Liters 2 Liters
Parfume, lotion, essence, cologne, lavender
water
5 bottles (each bottle can be 120
ml max )
5 bottles (each bottle can be
120 ml max ) AND 5 packages
of skin care products & make-up
Chocolate 1 kg AND 2 kg OR
Sugar Products 1 kg 2 kg
* The table does not include all products covered under Customs Law, but includes high importance products for ATU
15
TAV vs Other Airport Operators
16
TAV Airports Counterparts
- No state stake
- No foreign ownership limit
-Integrated business model with
service companies active in
every step of the value chain
- Ownership of the operational
rights of the airport portfolio
over a predetermined period
through BOTs and concessions
If BOT, high upfront capex with
minimal or no mandatory capex
throughout the operation period
-If concession, annual concession
payment
- Active state participation
- Foreign ownership limits
- Active mainly in
airport/terminal management
with some participation in
airport services
- Mostly own the airport
portfolio
- Regular capital expenditure
with bulk investments time-to-
time
SHAREHOLDER STRUCTURE
BUSINESS MODEL
PORTFOLIO OWNERSHIP
CAPITAL EXPENDITURE
Earnings Visibility
Notes: Passenger service charges apply to departing passengers only
Pax service charge(PSC)
Agreed passenger service charge of
airports / terminals depending on project
Ankara and Izmir have revenue guarantees
(fixed PSC and volume growth p.a.)
Passenger growth is the main driver
Bridge, check-in counter, parking,
apron, taxi etc
ATM growth is main driver
Airside Revenues
Ground Handling
Ramp, passenger services and traffic
ATM growth and aircraft type are the
main drivers
Duty Free
Other
Duty Free available to all international
inbound and outbound passengers
Increased number of shops, improved
selection of products and higher
penetration
Catering, car park, advertising,
area allocation, lounge services
AVIATON NON-AVIATON
17
Concession Overview
18
Airport Type/ExpireTAV
StakeScope
2009
Pax(mppa)
fee/pax
Int'l
fee/pax
dom.
Volume
Guarantee
Concession
FeeNet Debt*
Istanbul AtaturkConcession
(Jan. 2021)100% Int'l+Dom. 29,8
US$15 ,€ 5 (Transfer)
€ 3 No$140m/yr +
VAT €160m
Ankara EsenbogaBOT
(May 2023)100% Int'l+Dom. 6,1 €15 € 3
0,6 M. Dom. ,
0,75 Int'l for
2007+%5 p.a
- €110m
Izmir A.MenderesBOT
(Jan. 2015)100% Int'l 1,7 €15 -
1.0m Int’l for
2006 + %3 p.a.- €26m
GazipasaConcession
(July 2034)100% Int'l+Dom. - €5 TL4 No $50.000+VAT €16m
TbilisiBOT
(Feb. 2027)66% Int'l+Dom. 0,7 US$22 US$6 No - €24m
BatumiBOT
(Aug. 2027)60% Int'l+Dom. 0,07 US$12 US$7 No - -
Monastir&EnfidhaBOT+Concession
(May 2047)67% Int'l+Dom. 3,8 €9 €9 No
11-26% of
revenues from
2010 to 2047€343m
Skopje & OhridBOT+Concession
(March 2030)100%
Int'l+Dom.0,6
€17.5 in
Skopje,
€16.2 in
Ohrid
- No
15% of the
gross annual
turnover **
€18m
(*) As of 31 December 2010
** The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million,
and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers
TAV Gazipaşa shall make a yearly rent payent of US$ 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.
Operations Map & Potential Projects19
*Potential projects are indicated by red dots, as current operations by orange dots
- Significant traffic growth expected in our target region
- We define our target region as Middle East, Africa, Europe, the CIS countries including Russia and India
- Experienced international airport operators will be needed as the infrastructure developments reach completion
Riga Int’l Airport (with Air Baltic)
Medina Airport (with Al-Rajhi, Saudi Oger)
20
New Developments
•10th Year Target accomplished: 10 airports under portfolio as of 2010!
•New target is to serve to 100mn paxper annum by 2020.
•13% pax growth in 2010 on top of 3% growth attained in FY09
Traffic
Growth
•Antalya Gazipasa and Tunisia Enfidha Airports commenced operations
•TAV started to collect €5 transfer fee as of Jan. 2010 in Istanbul Ataturk Airport
•Havaş partnered with THY in TGS; and TGS commenced operations as of January 2010
•Macedonia started operations in March 2010
•Havas acquired 50% stake in North Hub Services, a ground handling company with aggressive growth plans in Baltics; and NGS commenced operations in Riga and Helsinki
•BTA took over operation of F&B service points at Istanbul Airport Domestic Terminal.
•Launch of TAV Passport
•Customs Law Amendment relieved the duty-free purchase limits at International Arrival Terminals
•We won the tender to operate commercial areas at Riga International Airport
Operational Highlights
21
Dividends
•Dividends are expected to commence in 1 to 2 years
•Progressive policy with high payment of free cash flow
Deleveraging
Completed
•Deleveraging completed with lucrative ROEs on stake sales
•%50 rights issue in Feb 2009 (€58m)
•Sale of TAV Tunisie stake to IFC (€28m) andPAIDF (€40m)
•Havaş sale to HSBC and Is Private Equity (€102m)
Capex
•Minimum maintenance capexneeded for the young airport portfolio
•No mandatory capex requirements in airport operation contracts
Financial Highlights
22
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 23
TAV Airports – Operations 33
Conclusion 54
Financial Overview23
(in mn €)* 2008 2009 ∆ y-o-y 2010 ∆ y-o-y
Revenues 627 640 2% 785 23%
EBITDA 141 167 19% 212 27%
EBITDA margin 22% 26% 4 ppt 27,0% 0,9 ppt
Net Income (Loss) 5 51 1.003% 52 0%
Cash flow from operations 214 211 -2% 336 59%
Capex 215 311 45% 118 -62%
Free Cash Flow -1 -100 nm 217 nm
Shareholders’ Equity 294 372 27% 438 18%
Net Debt 785 941 20% 821 -13%
Average number of employees 11.289 12.194 8% 17.535 44%
Number of passengers (mn) 40,9 42,1 3% 47,6 13%
- International 25,0 25,7 3% 29,3 14%
- Domestic 15,9 16,4 3% 18,3 11%
* Construction revenue and construction expenditure are excluded while computing the operational performance in the table.
** Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
Consolidated Revenue (€m) EBITDA (€m) Net Profit (€m)
2010 2009
785
640
%23
2010 2009
212
167
%27
2010 2009
52
51
%0
24
Revenue & EBITDA
EBITDA Breakdown (2009) EBITDA Breakdown (2010)
Revenue breakdown (2009) Revenue breakdown (2010)
33%
25%
18%
18%
6%
Duty-free
Aviation
Ground Handling
Other
F&B
51%
27%
12%
7%3%
0%
Istanbul
Other Airport
HAVAŞ
ATU
BTA
Other Services
40%
25%
15%
9%
4%
7%
Istanbul
Other Airport
HAVAŞ
ATU
BTA
Other Services
31%
26%
19%
18%
6%
Duty-free
Aviation
Ground Handling
Other
F&B
25
OPEX Breakdown
2009 2010
35%
21%
16%
10%
9%
7% 3%Personnel
Concession rent
Other Services
Duty Free
D&A
Services rendered
Catering
30%
28%
14%
11%
7%
7% 3%Personnel
Concession rent
Other Services
Duty Free
D&A
Services rendered
Catering
26
OPEX Breakdown
2009 2010
(Excluding concession rent and D&A expenses)
4%
15%
9%
49%
23%Catering
duty free
services rendered
Personnel
Other
4%
17%
10%
47%
22%Catering
duty free
services rendered
Personnel
Other
2010 Financial Summary27
Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
** TAV Istanbul EBITDAR: €228m (margin: 72%)
(€ million) Revenues EBITDA (*) EBITDA (*) Margin Net Debt
Airports 471,0 170,2 36% 697
Istanbul** 318,6 110,7 35% 160
Ankara 37,9 15,3 40% 110
Izmir 32,7 19,4 59% 26
Tunisie 45,7 12,2 27% 343
Gazipasa 0,0 (1,2) nm 16
Tbilisi & Batumi 22,0 11,3 51% 23
Macedonia 14,1 2,5 18% 18
Services 469 43,5 9% 125
ATU (50%) 170 15,4 9% 21
BTA 75,0 7,2 10% (3)
Havaş 163,5 25,5 16% 76
Others 60,7 (4,6) nm 32
Total 940 213,7 23% 822
Eliminations (155) (1,5) -
Consolidated 785 212,2 27% 822
TAV Airports Consolidated – 2010
28
Revenue by country (2010)
90%
3%
6%
2%
CAPEX
(million €)
Enfidha Airport capex
29
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10
property and equipment airport aviation right intabgible assets
1520
67
39
6268
45
113
88
55 56
25
35
17
42
18
Debt Structure
30
NET DEBT
(€ million)31 December 2008 31 December 2009 30 December 2010
Airports 571 778 697
Istanbul 229 241 160
Ankara 119 119 110
Izmir 65 46 26
Tunisia 134 335 343
Gazipasa 3 9 16
Tbilisi 21 30 24
Batumi 0 0 -0
Macedonia - 0 18
Services 214 163 125
ATU (50%) 20 17 21
BTA 1 2 (3)
Havas (4) 9 76
Others* 197 152 32
Total 785 941 822
* Including Holding Co.
Debt Repayment
€ Million, as of December 31, 2010
De-leveraging Process
Rights Issue (€57m, January 09)
TAV Tunisie Sale to IFC (€28m, August 09)
Havaş sale to HSBC - Is Girisim (€102m,
March 10)
TAV Tunisie sale to PAIDF (€39.7m, June 10)
31
1- years 2-years 3- years 4- years 5- years 5+ years
TAV Holding
TAV Gazipaşa
TAV Macedonia
Havaş
ATU
TAV Tbilisi
TAV Izmir
TAV Esenboğa
TAV Tunisie
TAV Istanbul
125129
117 121
515
212
32
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 23
TAV Airports – Operations 33
Conclusion 54
Turkey33
Penetration is still quite low with passport ownership at low teens
Demographics support further market growth in the long term 2nd most populous country in Europe with a
population of 72.6 million
Fastest growing and youngest population in Europe
67% of the population is between ages 15-64, while %26 are between 0-14 and only 7% are above 65
years.
Turkish Airlines' Star Alliance membership builds Turkey into a regional hub.
3.9 million Turkish immigrants living in Europe offers a resilient traffic flow
Ministry of Transport projects 350 million pax by 2023, implying to a CAGR of 11%
34
Istanbul Atatürk Airport (100% owned)
Largest in the region
Main hub and home base for Turkish Airlines
One of the fastest growing airports in Europe & 39th busiest
airport in the world
Revenue of €319 million in 2010
€228 million EBITDAR in 2010, implies 72% margin
€5 Transfer Fee (from Int’l Pax)
Terminal Expansion in 2010
Among “50 Best Travel Centers” list in Monocle, as a “Magnet
for Transit Flights.”
Domestic International
Source: DHMİ
Air Traffic Movement per airline (2010)
Source: DHMI
Note: 2009 and 2008 are not comparable with previous periods
Passenger traffic 2002 - 2010 (m)
2002 2003 2004 2005 2006 2007 2008 2009 2010
Int'l Domestic
21,319,3
15,6
12,1
28,6
23,2
32,129,8
11,4
THY (%65)
Lufthansa (%2)
Atlas Jet (%2)
MNG (%2)
THY (%75) Onur Air (%14)
Atlas Jet (%8) Other (%3)
Ankara Esenboga Airport (100% owned)
Newest in the region
Secondary hub of Turkish Airlines (THY)
Operations commenced in October 16, 2006.
THY’s Ankara based brand Anadolu Jet began to fly in May
2008
In 2009, received “Best Airport Award” by ACI, in 5-10 million
category
Air Traffic Movement per airline (2010)
Passenger traffic 2002-2010 (m)
Source: DHMI
Source: DHMI
InternationalDomestic
2002 2003 2004 2005 2006 2007 2008 2009 2010
Int'l Domestic
5,7
5,04,5
3,83,32,8
6,1
7,8
2,8
35
THY (%83) Pegasus (%12) Other (%5)
THY (%38)
Lufthansa (%12)
Pegasus (%11)
Other (%38)
36
Izmir Adnan Menderes Airport (100% owned)
Third largest city with the second biggest port in Turkey
Major tourist destination
Operations commenced in September 13, 2006.
Diversified customer base
Air Traffic Movement per airline (2010)
Passenger traffic 2002 - 2010 (m)
Source: DHMI
Source: DHMI
(*) International passengers only
2002 2003 2004 2005 2006 2007 2008 2009 2010
1,51,4
1,5 1,71,5
1,6 1,7 1,7
2,1
Int'l
Sun Express (%32)
Pegasus (%14)
Lutfhansa (%7)
Other (%47)
Georgia
37
Located on the east of Black Sea, Georgia controls most of the trade routes through Caucasus Mountains.
Constructions of several oil and gas pipelines such as Baku-Tbilisi-Ceyhan have proved the strategic location of
Georgia.
Georgian Economy had been one of the fastest growing economies among Former Soviet Union until the
dispute with Russia on Abkhazia and South Ossetia.
38
Tbilisi International Airport (66% owned)
Operations in new terminal commenced in February 7,
2007.
Capturing almost all air traffic in Georgia
Capital city of Georgia with promising business
opportunities
Capacity: 2.8 million passengers per year
Selected as the Best Emerging Airport – Russia, CIS and
Baltic States
Air Traffic Movement per airline (2010)
Passenger traffic 2002 - 2010 (‘000)
Source: Georgian Civil Aviation Authority
Source: Georgian Civil Aviation Authority
2002 2003 2004 2005 2006 2007 2008 2009 2010
0,270,32
0,40
0,55 0,570,62
0,71 0,70
0,82
Georgian (%30)
THY (%13)
Armavia (%9)
Other (%48)
39
Batumi International Airport (60% owned)
Operations in the terminal commenced in May 26, 2007.
Second biggest city of Georgia with strategic importance
Air Traffic Movement per airline (2010)
Passenger traffic 2007-2010 (‘000)
Source: Georgian Civil Aviation Authority
Note: Domestic Passenger numbers included Hopa Terminal Passengers
Source: Georgian Civil Aviation Authority
2007 2008 2009 2010
40
8188
96
THY (%26)
Georgian A/W (%15)
Air Batumi (%12)
Other (%46)
Tunisia
40
The privatization policies of the Government have pushed the economy forward over the past decade.
Tunisia has been getting increasingly popular as a holiday destination. The country, with its charming beaches, attracts
around 9.5 million tourists per annum.
Has 10.5 million young population, 23% of which is between ages 0-14 and 70% of which is between 15-65.
Monastir International Airport (67% owned)(*)
TAV started to operate in January 1, 2008
Tunisia have potential to be the hub of Africa in near
future
90% of travelers visiting Tunisia prefer air transportation
TAV Tunisia SA started to provide services for Enfidha
Airport since December 2009
Selected as the Best Emerging Airport in Africa,
surpassing all other African airports.
Air Traffic Movement per airline (2010)
Passenger traffic 2003-2009 (m)
Source: TAV Tunisie
Source: TAV Tunisie
* TAV sold 15% of shares of TAV Tunisie SA to IFC in 2009. and 18% of shares to
PAIDF in June 2010
2002 2003 2004 2005 2006 2007 2008 2009 2010
2,9 2,8
3,74,1 4,2 4,2 4,2
3,8 3,9
41
Tunis Air (%30)
Nouvelair Tunisa (%26)
Air Berlin (%4)
Other (%40)
Macedonia
Is an important crossroads of trade in Balkan Region
Adoption of visa liberalization for Macedonia in Dec 2009 has freed the traffic between Macedonia and EU
member states of 500 million population.
On the verge of joining the European Common Aviation Area (ECAA), which will lift the bilateral agreements and
boost the air traffic in the region.
42
43
We are awarded the tender on September 2, 2008
TAV started to operate Skopje and Ohrid Airports in
March 1, 2010
The European Parliament’s adoption of the visa
liberalization for Macedonia on December 19, 2009 has
opened a new era for Macedonian travel. The removals
of visa requirements have freed traveling between
Macedonia and 25 out of 27 EU member states with 500
million citizens.
Passenger traffic 2005 -2010 (‘000)
Air Traffic Movement per airline (Skopje-2010)
Skopje and Ohrid International Airports (100% owned)
2005 2006 2007 2008 2009 2010
Skopje Ohrid
593672
697 636725
575
Adria (%11)
Malev (%9)
Austria Airways (%8)
Other (%72)
ATU Duty Free
44
ATU is Turkey’s leading duty free operator chain, established as a joint venture between TAV
Airports Holding and Unifree Duty Free A.S. It is the sole duty free operator of the Istanbul,
Izmir, Ankara in Turkey, Tbilisi and Batumi airports in Georgia, Enfidha airport in Tunisia,
Skopje and Ohrid airports in Macedonia and Riga International Airport in Latvia as of
January 2011
ATU which is an enterprise constituting a perfect partnership collaboration model between TAV
and Unifree creates a considerable operation, purchasing capacity and an effective logistics
network.
ATU Duty Free (50% owned)
ATU is the sole duty free operator at Istanbul Ataturk,
Ankara, Izmir, Tbilisi, Batumi and Enfidha
Competitive concession fee paid to TAV for ATÜ-
operated shops in Ataturk Airport
ATÜ also pursues tenders outside TAV operations and
started to operate in Riga (Latvia)
Note: Figures imply 100% of ATU
Revenue (€m) Spend Per Pax (€)*
Financial Data
* 2007,2008 and 2009 duty-free spend per pax includes Istanbul, Ankara & Izmir; while
previous periods indicate Istanbul only
(€ m) 2006 2007* 2008* 2009* 2010 Change
Total Revenues 217.2 277.0 302.8 290.3 340,0 17%
EBITDA 7.6 17.6 27.6 27,7 30,8 11%
EBITDA Margin 3.5% 6.4% 9.1% 9,5% 9,0% -
Spend per pax (€) 15,7 14,8 15,8 14,7 14,5 -2%
45
142166
188217
277303 290
340
2003 2004 2005 2006 2007 2008 2009 2010
14,3
14,8 14,8
16
14,8
15,9
14,714,5
2003 2004 2005 2006 2007 2008 2009 2010
BTA Catering Services
46
BTA Catering was founded in 1999 under the partnership of Bilintur, Tepe and Akfen in
order to handle the food & beverage operation of the Istanbul Atatürk Airport's
International Terminal.
Following the opening of the new International Terminal of Istanbul Atatürk Airport on the
10th of January 2000, all food & beverage operations of the terminal, both for the
passengers and the terminal personnel, are managed by BTA Catering.
BTA Catering Services (67% owned)
BTA is the food and beverage operator at Istanbul
Ataturk(Int’l and domestic terminal), Ankara,
Izmir,Tbilisiand Batumi,Monastir,Enfidha,Skopje and
Ohrid
Total revenue increased by 27% in 2010
Concession fees: BTA pays c40% of its revenues to TAV
Note: Figures imply 100% of BTA
* 2007 ,2008 and 2009 food & beverage spend per pax includes Istanbul, Ankara & Izmir;
while previous periods indicate Istanbul only
Revenue (€m) Spend Per Pax (€)*
Financial Data
* 2007 and 2008 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while
previous periods indicate Istanbul only
(€ m) 2006 2007* 2008* 2009* 2010* Change
Total Revenues 35.0 50.3 58.1 59,1 75,0 27%
EBITDA 3.0 -0.2 3.5 6.5 7,2 11%
EBITDA Margin 8.6% n.m. 6.0% 11% 10% -
Spend per pax (€) 2.4 1.8 2.1 2.0 1,6 -21%
47
14,921,1
29,435
50,358,1 59,1
75,0
2003 2004 2005 2006 2007 2008 2009 2010
1,31,5
1,9
2,4
1,82,1 2
1,6
2003 2004 2005 2006 2007 2008 2009 2010
48
Havaalanları Yer Hizmetleri A.Ş. (Havaş), the first Ground Handling Services Company in Turkey,
was founded by the state in 1933 to provide ground handling and catering services for airlines.
Whereas catering services of the company were privatized under the name USAŞ in 1987,
ground handling services unit continued to render services under the name Havaalanları Yer
Hizmetleri A.Ş.
Havaş Ground Handling
49
Havaş Ground Handling (65% owned)
Total revenue of Havas increased by 30% in 2010
Operating at 22 airports in Turkey
Havaş has been elected by THY as partner in the TGS Ground
Handling Services Inc. which commenced its operations as of 01
January, 2010
Havaş purchased 50% shares of North Hub Services as of 12
April, 2010
Financial Data
(€ m) 2006 2007 2008 2009 2010 Change
Total Revenues 99.5 108.1 120.6 125.9 163,5 30%
EBITDA 11.1 20.3 28.1 24.2 25,5 6%
EBITDA Margin 11.2% 18.7% 23.3% 19.2% 15,6% -
# Aircrafts handled
(‘000) 122.7 139.3 158.6 182.7 242,7 33%
Revenue (€m) Aircrafts Handled* (‘000)
2010 2009
134
87
TGS Only*
%54
2010 2009
109
96
Havas Only
2010 2009
243
183
Havas+TGS
%33%13
* THY flights served by Havas at Istanbul Ataturk Airport in 2010
Figures imply 100% of Havas
84,199,5
108,1120,6 125,9
163,5
2005 2006 2007 2008 2009 2010
Havaş & TGS Operation Map
50
Dalaman
Bodrum
İzmir
Antalya
İstanbul
(AHL,ISG)
Konya
Ankara
Trabzon
Sivas
Muş
Urfa
Batman
Elazığ
Adıyaman
GaziantepAdana
Kayseri
Nevşehir
ZonguldakSinop
Merzifon/
Amasya
North Hub Services
51
Riga – 1 Jan 2010
Helsinki – 1 July 2010
Stockholm – April 2011
Gothenburg – June 2011
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
Commercial area allocations and maintenance
CIP / VIP
TAV IT (99%), become a separate entity in 2005
Airport IT services, software and hardware sales
TAV Security (67%), became a separate entity in 2006
Security service provider in Istanbul, Ankara and Izmir,
Gazipaşa
Note: All periods include TAV Holding, TAV O&M, TAV IT and TAV Security
In 2009, €9million one-off gain was recorded due to the sale of TAV Tunisie shares to IFC
In 2010, approximately €5 million one-off expense was recorded due to consultancy charges
Revenue (€m) Revenue Breakdown ( 2010)
Financial Data
(€ m) 2006 2007 2008 2009 2010 Change
Total Revenues 38.8 50.3 54.5 66.1 60,7 -8%
EBITDA 6.7 -6.6 -1.7 19.6 -4,6 n.m.
EBITDA Margin 17.3 n.m. n.m. 30 n.m. -
52
38,8
50,354,5
66,160,7
2006 2007 2008 2009 2010
TAV O&M 50%
TAV IT 16%
TAV Security
14%
Holding 20%
53
Page
TAV Airports – Overview 1
TAV Airports – Financial Overview 23
TAV Airports – Operations 33
Conclusion 54
Share Performance (as of March 02, 2011)
Notes: Share figures in this page was prepared as of March 02 , 2011.
Share Price Performance
Weekly 1M 3M Year to Date Since IPO
TL -2% -12% -13% -15% -24%
USD -3% -14% -20% -19% -35%
Relative to ISE -100 6% -2% -1% -4% -43%
Closing Price
6,38
Market Cap (USD)
1,4bn
Avg. DailyVol.
(USD)
11mn
Free Float
44%
Foreign Ownership
82%
Effective Free Float
40%
54
0,3
0,4
0,5
0,6
0,7
0,8
0,9
1,0
1,1
1,2
1,3
1,4
0
1
2
3
4
5
6
7
8
02-0
3-1
1
08-1
2-1
0
06-0
9-1
0
11-0
6-1
0
09-0
3-1
0
11-1
2-0
9
11-0
9-0
9
19-0
6-0
9
24-0
3-0
9
29-1
2-0
8
24-0
9-0
8
02-0
7-0
8
07-0
4-0
8
14-0
1-0
8
16-1
0-0
7
20-0
7-0
7
27-0
4-0
7
Price ($)Relative
TAVHL ($) Relative to ISE-100
Macro Outlook
2007 2008 2009 2010 2011 2012 2013 2014 2015
Estimates Start
After
CAGR
2009-15
Georgia
GDP (USD, bn) 10 13 11 11 12 13 14 15 16 2009 7%
GDP per capita (USD, 000) 2.3 2.9 2.5 2.6 2.7 2.9 3.2 3.4 3.7 2009 7%
GDP based on PPP per capita (int dollars) 4.7 4.9 4.8 5.1 5.3 5.7 6.0 6.4 6.9 2009 6%
Inflation (average, % change) 9 10 2 6 7 6 6 6 6 2009
Population (mn) 4 4 4 4 4 4 4 4 4 2009 0%
Latvia
GDP (USD, bn) 29 34 26 23 24 25 26 27 28 2009 2%
GDP per capita (USD, 000) 12.6 14.9 11.5 10.4 10.6 11.1 11.6 12.2 12.8 2009 2%
GDP based on PPP per capita (int dollars) 17 17 14 14 15 16 17 18 19 2009 5%
Inflation (average, % change) 10 15 3 (1) 1 1 1 1 1 2008
Population (mn) 2 2 2 2 2 2 2 2 2 2009 0%
Former Yugoslav Republic of Macedonia
GDP (USD, bn) 8 10 9 10 10 11 12 12 13 2009 6%
GDP per capita (USD, 000) 4.0 4.8 4.5 4.6 4.9 5.2 5.5 5.9 6.2 2009 5%
GDP based on PPP per capita (int dollars) 9 9 9 9 10 10 11 11 12 2009 4%
Inflation (average, % change) 2 8 (1) 2 3 3 3 3 3 2009
Population (mn) 2 2 2 2 2 2 2 2 2 2009 0%
Tunisia
GDP (USD, bn) 39 45 44 44 46 48 51 54 57 2006 5%
GDP per capita (USD, 000) 3.8 4.3 4.2 4.2 4.3 4.4 4.7 4.9 5.1 2006 4%
GDP based on PPP per capita (int dollars) 8 9 9 9 10 10 11 12 13 2006 5%
Inflation (average, % change) 3 5 4 5 4 3 3 3 3 2007
Population (mn) 10 10 10 11 11 11 11 11 11 2006 1%
Turkey
GDP (USD, bn) 649 730 614 729 790 846 903 966 1,033 2009 9%
GDP per capita (USD, 000) 9.4 10.5 8.7 10.2 10.9 11.5 12.2 12.9 13.6 2009 8%
GDP based on PPP per capita (int dollars) 13 13 12 13 14 14 15 16 16 2009 5%
Inflation (average, % change) 9 10 6 9 6 6 5 4 4 2009
Population (mn) 69 70 71 71 72 73 74 75 76 2009 1%
International Monetary Fund, World Economic Outlook Database, October 2010
55
56
Traffic Outlook
2009 -2014
2010 -2030
2010 -2030
2010 -2030
2009 -2023
World
World
World
World
Turkey
5.3% CAGR in RPK
4.2 pax - 5.3% CAGR in
RPK
2010-2030 4.8% RPK
4.7% CAGR in RPK
11% CAGR in Passengers
56
Tourism
Countries 2010 2009 Change
Germany 4,4 4,5 -2%
Russia 3,1 2,7 15%
UK 2,7 2,4 10%
Iran 1,9 1,4 36%
Bulgaria 1,4 1,4 2%
Georgia 1,1 1,0 12%
Netherlands 1,1 1,1 -5%
France 0,9 0,9 0%
Syria 0,9 0,5 76%
Italy 0,7 0,6 6%
Other 10,5 10,5 0%
TOTAL 28,6 27,1 6%
Source : Ministry of Culture and Tourism
2000 2005 2006 2007 2008 2009 08/07 09/08
1-France 77,2 75 77,9 80,9 79,2 74,2 -2 -6,3
2-USA 51,2 49,2 51 56 57,9 54,9 3,5 -5,3
3-Spain 46,4 55,9 58 58,7 57,2 52,2 -2,5 -8,7
4-China 31,2 46,8 49,9 54,7 53 50,9 -3,1 -4,1
5-Italy 41,2 36,5 41,1 43,7 42,7 43,2 -2,1 1,2
6-UK 23,2 28 30,7 30,9 30,1 28 -2,4 -7
7-Turkey 9,6 20,3 18,9 22,2 25,0 25,5 12,3 2,0
8-Germany 19 21,5 23,6 24,4 24,9 24,2 1,9 -2,7
9-Malaysia 10,2 16,4 17,5 21 22,1 23,6 5,1 7,2
10-Mexico 20,6 21,9 21,4 21,4 22,6 21,5 5,9 -5,2
World 682 801 846 900 919 880 2,1 -4,3
Source :UNWTO
6% Turkey # 7
57
Tourist Arrivals increased by 6% in 2010 International Tourist Arrivals by Country
Revenue sources
Aeronautical Charges Non-aeronautical Charges
Passenger Fee Ground Handling Landing Parking Fuel Duty Free F&B Car Park
Turkey
Istanbul
Esenboga
Izmir
Gazipasa
Tunisia
Enfidha
Monastir
Georgia
Tbilisi
Batumi
Macedonia
Skopje
Ohrid
Latvia Riga
BTA started operations in Istanbul Ataturk Airport Domestic Terminal starting from July 2010
ATU will start operations in Monastir starting from July 2014
BTA will start operations in Monastir starting from 2018
58
Istanbul as a Transit Hub
Best Transit Hub, (%of Routes)
Source: Determining Hub Efficiency in Europe, MIiddle East and North Afirca a comparative study, E. Nur Günay, Şükrü Nenem
Istanbul is the most efficient hub for Europe, MENA Region, according to a study by Bosphorus University
Analysis based on “cost per ASK” and a sample of 4,080 distinct O&D pairs
Comparison of 7 existing and emerging hubs: London, Paris, Frankfurt, Dubai, Cairo, Madrid and Istanbul
0
5
10
15
20
25
30
35
İstanbul AHL
Frankfurt Cairo London Dubai Paris Madrid
33
23
16
13 13
31
59
TAV Airports Fraport World
Aeroports de Paris BAA Europe AENA Schiphol
3
-3 -3
-5 -5-6
-8 -8
Growth Rates of Pax Number in Selected Airports
%
%
Source: ACI
60
TAV 3%
2009
2010
TAV 13%
TAV Airports Fraport World AENA Europe Schiphol
Aeroports de Paris BAA
13
9
6 6
4 4
0
-3
61
Historic Overview
1997 1998 2000 2003 200620022001
January 2000
ATÜ began
operations
International terminal
building completed
c.8 months ahead of
schedule
June 2000
Concession agreement
extended through to
2nd July 2005 in
return for a 30%
enlargement of the
int’l terminal
1999 20052004
Established under the name
of Tepe Akfen Vie Yatirim
Yapim ve Isletme A.S.
TAV successfully tendered
for BOT project for Istanbul
Atatürk Airport (Concession
deadline May 7, 2004)
May 2004
BTA started operating the
Istanbul International Airport
Hotel
August 2004
Executed the BOT agreement
for Ankara Esenboğa
International Airport (right to
operate through mid-2023)
September 2004
TAV O&M incorporated
June 2005
TAV won the tender for Ataturk Airport to operate
for 15.5 years (through 2nd Jan 2021)
July 2005
TAV acquired 60% of Havaş shares
TAV obtained control of the BOT for Izmir Adnan
Menderes Airport (right to operate through Jan
2015) through the acquisition of Havaş
August 2005
TAV IT became a separate entity
September 2005
TAV Urban Georgia LLC won the BOT tender for 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
March 2006
TAV Security became a separate entity
August 2006
Name changed to TAV Havalimanlari Holding
A.S.
September 2006
Completed the construction of Izmir Adnan
Menderes Airport’s international terminal
October 2006
Ankara Esenboğa’s new domestic and
international terminals completed
BTA was founded
2007
February 2007
IPO: TAV Havalimanlari Holding offered 44.56 million of
its shares to public
March 2007
TAV won the tender to operate Monastir and Enfidha
Airports in Tunisia for 40 years
May 2007
TAV started to operate Batumi Airport
July 2007
TAV acquired remaining 25% of TAV Esenboga and 5%
of TAV Izmir
August 2007
TAV is awarded the tender of Antalya-Gazipasa Airport
November 2007
TAV increased its stake in Havaş to 100% from 60%
2008
January 2008
TAV started operating Monastir
Airport
March 2008
TAV Istanbul refinancing
April 2008
TAV Tunisie signed project
financing agreement
September 2008
TAV is awarded the tender for
Macedonian Airport
Infrastructure Development
Developments in 200962
2
3
4
5
Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09
%50 Rights Issue
TAV Tunisia
minority share sale
aggreement
TAV Tunusie started
to provide services
for Enfidha Airport
Havas stake sale
announcement
TAV Tunise stake
sale to IFC
Change in
costoms law
63
Developments in 2010
3
4
5
6
7
8
9
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10
TAV Tunisie
minority share sale
agreement
NHS share
Purchase
Agreement
MoU with
AirBaltic
MoU with
Indonesia
Removed from
the MSCI Small
Cap Index
AKFEN
IPO
Riga
Commercial
Areas
Takeover of
operations of Skopje
and Ohrid Airport
AKFEN
SPO
Corporate
Governance
Report Update
Change in Duty
Free Limits
64
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 90.35 (9,03) 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 below.
Sub-categories Weight Grade Grade assigned
Shareholders 0.25 9,05 9,0
Public Disclosure and Transparency 0.35 9,26 9,0
Stakeholders 0.15 9,54 9,5
Board of Directors 0.25 8,40 8,5
Total 1.00 9,03 9,0
Highest corporate governance rating in Turkey
65
Dividend Policy
Under Turkish law, the distribution of profits and the payment of an annual dividend in respect of the preceding financial year is
recommended by our Board each year for approval by the shareholders at the annual general meeting, which must be held within
three months following the end of the preceding fiscal year.
Dividends are payable on a date determined at the annual general meeting of shareholders or on a date to be determined by
the Board if the general meeting of shareholders authorizes the board to make such a decision.
Pursuant to the requirements of the CMB, listed companies should distribute dividends on a date no later than the end of the fifth
month following the end of the preceding fiscal year.
Distribution of dividends by listed companies can be made in the form of cash or bonus shares, or a combination of both. Each
share entitles its holder to the amount of dividend corresponding to its shareholding.
TAV Airports Holding has not distributed any dividends to shareholders, yet.
Although TAV Airports recorded a net profit in its 2009 financials, it did not distribute any dividends to its shareholders due to
accumulated loss in the TR-GAAP financials.
66
Management Team
Positions within TAV Airports
Dr. Sani Şener Chief Executive Officer (CEO)
Senior Management
Murat Ulug Chief Financial Officer (CFO)
Serkan Kaptan Business Development Director
Altug Koraltan Internal Audit Director
Deniz Aydın Financial Affairs Director
Murat Örnekol Operations Director
Haluk Bilgi Business Development Director (Subsidiaries)
Waleed Youssef Strategy Director
Ersagun Yücel General Secretary
Banu Pektaş Legal Counsel
Airport GMs
Kemal Ünlü GM, TAV Istanbul
Erkan Balcı GM, TAV Izmir
Nuray Demirer GM,TAV Esenboga
Ersel Göral GM, TAV Tunisie
Mete Erkal GM, TAV Georgia
Zoran Krstevski GM, TAV Macedonia
Service Companies GMs
Ersan Arcan GM, ATU
Sadettin Cesur GM, BTA
Müjdat Yücel GM, HAVAS
Levent Güler GM Deputy, TAV Security
Binnur Onaran GM, TAV IT
Eda Bildiricioğlu GM, TAV O&M
67
Board of Directors
Board Member Positions within TAV Airports and other Companies
Hamdi Akın (Chairman)Chairman of Akfen Holding
Ali Haydar Kurtdarcan (Vice Chairman)Chairman of Tepe Construction Ind. Inc.
Dr. Sani Şener (Member and CEO)CEO of TAV Airports
İbrahim Süha Güçsav (Member)CEO of Akfen Holding
Prof. Dr. Abdullah Atalar (Member)Vice Chairman of Bilkent Holding
Önder Sezgi (Member)Financial Affairs and Audit Director of Bilkent Holding
Ahmet Ersagun Yücel (Member)General Secretary of TAV Airports
Dr. Cem Kozlu (Independent Board Member)Independent Board Member
Pierre de Champfleury ( Independent Member )Independent Board Member
68
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 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 Izmir, TAV Esenboga, TAV Tbilisi, TAV Tunisia, TAV Macedonia and TAV Gazipasa, which are in the
application of IFRIC 12 are assessed by the management as 0%, 0%, 15%, 5%, 0% 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 Esenboga Airport and Izmir Adnan Menderes Airport is represented as guaranteed passenger fee
receivable in the balance sheet as a result of IFRIC 12 application.
IFRIC 12
69
IFRIC 12
Airport operation right Added
Trade receivables Increase
Build-operate-transfer
(“BOT”) Investment Removed
The effect of adoption of IFRIC 12
Balance Sheet
(Assets)
Income
Statement
Construction revenue Added
Construction expenditure (-) Added
Aviation income Decrease (guaranteed pax fees)
Discount interest income Added
Depreciation and amortisation
expense (-) Decrease
69
70
Cash Flow Hedge Accounting
•Subsidiaries, TAV Istanbul, TAV Esenboga, TAV Izmir and TAV Tunisie enter into swap transactions in order to diminish exposure to foreign currency mismatch
relating to DHMI installments and interest rate risk to manage exposure to the floating interest rates relating to loans used.
•100%, 65%, 100% and 50% of floating bank loans for TAV Istanbul, TAV Izmir, TAV Esenboga and HAVAŞ, respectively are fixed with financial derivatives.
100% of floating senior bank loans for TAV Tunisie was fixed with financial derivative until 31 October 2009 and 85% of floating senior bank loans for TAV
Tunisie is fixed with financial derivative starting from 1 November 2009.
Sensitivity Analysis
A 10 percent strengthening/weakening of the EUR against the following
currencies at 31 December 2010 and 31 December 2009 would have
increased/decreased “equity” and “profit/loss” by the amounts shown
below. This analysis assumes that all other variables, in particular interest
rates, remain constant.
Based on the Group’s current borrowing profile, a 50 basis points
increase in Euribor or Libor would have resulted in additional annual
interest expense of approximately EUR 4.6 million on the Group’s
variable rate debt when ignoring effect of derivative financial
instruments. EUR 3.9 million of the exposure is hedged through IRS
contracts. Therefore, the net exposure on income statement would be EUR
0.7 million. A 50 basis points increase in Euribor or Libor would have
resulted an increase in hedging reserve in equity approximately by EUR
25.3 million and a 50 basis points decrease in Euribor or Libor would
have resulted an decrease in hedging reserve in equity approximately by
EUR 26.5 million.
Equity Profit or loss
Strengthening Weakening Strengthening Weakening
of EUR of EUR of EUR of EUR
31-Dec-10
USD -26,0 31,7 2,9 -2,9TRL -8,7 8,7Other -0,4 0,4Total -26,0 31,7 -6,2 6,2
31-Dec-09
USD -26,0 31,8 -0,2 0,2TRL -4,7 4,7Other -1,5 1,5Total -26,0 31,8 -6,5 6,5
71
Consolidated Income Statement
(€ million) 2010 2009Construction revenue 41,6 284,5 Total operating income 713,3 573,0 Aviation Income 169,7 113,2 Sales of duty free goods 165,8 131,4 Ground handling income 152,0 142,0 Commission from sales of duty free goods 77,8 68,2 Catering services income 47,8 38,1 Other operating income 39,6 36,0 Construction expenditure (41,4) (271,4)Operating expenses (632,4) (509,5)Cost of catering inventory sold (16,5) (13,9)Cost of duty free inventory sold (64,9) (55,3)Cost of services rendered (42,1) (34,3)Personnel expenses (219,3) (152,8)Concession rent expenses (129,6) (143,6)Depreciation and amortization expense (59,5) (37,2)Other operating expenses (100,4) (72,3)Operating profit 120,8 112,6 Finance income 31,9 25,1 Finance expenses (89,2) (84,6)Profit before income tax 63,5 53,1 Income tax expense (11,8) (1,6)Profit for the period from continuing operationsAttributable to: Owners of the Company 49,8 50,5 Non-controlling interest 1,9 0,9
51,6 51,5 Other Financial Data:Adjusted Revenue * 785,0 639,7 Adjusted EBITDA * 212,2 167,4 Adjusted EBITDAR * 341,8 311,1
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Consolidated Balance Sheet
2010 2009
ASSETS
Property and equipment 169.534.780 117.527.566
Intangible assets 37.877.865 41.320.152
Airport operation rights 734.271.656 723.041.011
Other investments 24.238 24.238
Goodwill 154.019.707 151.402.835
Prepaid concession expenses 82.283.714 107.413.971
Trade receivables 113.810.957 134.457.502
Other non-current assets 601.680 8.930.598
Deferred tax assets 79.492.563 54.254.039
Total non-current assets 1.371.917.168 1.338.371.912
Inventories 13.966.668 11.403.317
Prepaid concession expenses 122.592.025 117.275.560
Trade receivables 77.681.614 62.044.641
Due from related parties 5.124.375 10.482.379
Derivative financial instruments 0 6.390.781
Other receivables and current assets 33.305.357 29.287.322
Cash and cash equivalents 32.442.373 34.010.922
Restricted bank balances 382.444.797 313.849.601
Total current assets 667.557.271 584.744.523
TOTAL ASSETS 2.039.474.431 1.923.116.435
73
2010 2009
EQUITY
Share capital 162.383.978 162.383.978
Share premium 220.286.470 220.286.470
Legal reserves 21.655.917 18.385.795
Other reserves 14.622.932 -
Revaluation surplus 1.982.718 2.324.325
Purchase of shares of entities under common control 40.063.860 40.063.860
Cash flow hedge reserve -61.729.366 -59.776.657
Translation reserves 849.301 -2.056.517
Retained earnings / (Accumulated losses) 37.209.526 -9.168.016
Total equity attributable to equity holders of the Company 437.325.336 372.443.238
Non-controlling interest 103.060.117 40.555.777
Total Equity 540.385.453 412.999.015
Consolidated Balance Sheet
74
LIABILITY 2010 2009
Loans and borrowings 1.008.094.394 1.089.524.346
Reserve for employee severance indemnity 7.451.972 4.645.483
Due to related parties 14.130.564 19.082.385
Deferred income 21.688.366 14.339.463
Deferred tax liabilities 6.281.309 7.335.962
Total non-current liabilities 1.057.646.606 1.134.927.639
Bank overdraft 2.865.313 2.379.933
Loans and borrowings 225.363.062 196.758.985
Trade payables 34.158.390 29.306.087
Due to related parties 14.021.181 12.285.718
Derivative financial instruments 104.968.109 85.400.809
Current tax liabilities 9.920.571 1.391.675
Other payables 38.074.621 39.264.452
Provisions 4.832.799 2.695.918
Deferred income 7.238.327 5.706.204
Total current liabilities 441.442.372 375.189.781
Total Liabilities 1.499.088.978 1.510.117.420
TOTAL EQUITY AND LIABILITIES 2.039.474.431 1.923.116.435
Consolidated Balance Sheet
75
Consolidated Cash Flow Statement
2010 2009Profit for the period 51.639.930 51.464.776Adjustments for:
Amortisation of airport operation right 32.765.582 19.266.667Depreciation of property and equipment 21.218.211 13.464.997Amortisation of intangible assets 5.560.792 4.492.928Amortisation of prepaid concession rent 129.638.846 143.621.639Provision for employment termination benefits 4.393.388 5.640.693Provision set for doubtful receivables 1.336.568 306.451Provision set for tax penalties - 444.174Other provisions released 204.048 172.277Gain on sale of non-controlling interest in a subsidiary - -8.993.461Discount on receivables and payables, net -22.078 9.937Gain on sale of property and equipment -386.413 -67.121Impairment of property and equipment 6.638.910 -Provision set for unused vacation 1.802.934 -47.067Provision set / (released) for slow moving inventory 53.749 31.887Accrued insurance income -6.924.254 -Interest income -14.619.447 -17.514.462Interest expense on financial liabilities 81.804.039 68.068.857Income tax expense 11.826.115 1.645.831Discount income from concession receivable -10.242.300 -7.542.366Unrealised foreign exchange differences on statement of financial position items 23.649.535 18.182.260
340.338.155 292.648.897
Change in working capital 101.280.243 11.738.909
441.618.398 304.387.806
Income taxes paid -24.797.818 -11.158.291Interest paid -78.695.629 -79.336.425Retirement benefits paid -1.834.364 -4.215.585
Net cash provided from operating activities 336.290.587 209.677.505
76
Consolidated Cash Flow Statement
2010 2009CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 14.509.566 16.952.284
Proceeds from sale of property and equipment and intangible assets 1.863.704 350.517Acquisition of subsidiary net of cash acquired -3.241.766 -18.164.878Acquisition of property and equipment -79.841.910 -52.459.245
Proceeds from sale of non-controlling interest in a subsidiary 141.668.682 27.999.826
Additions to airport operation right -38.015.639 -259.025.519Acquisition of intangible assets -1.046.598 -594.035
35.896.039 -284.941.050Net cash provided from / (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIESNew borrowings raised 140.991.003 378.969.675
Repayment of borrowings -215.050.661 -198.880.814
Change in restricted bank balances -242.350.100 -136.500.200Non-controlling interest change -59.633.892 -14.952.311Repayment of finance lease liabilities 1.803.095 -47.106Increase in share premium - 103.989Increase in share capital - 57.473.711
-374.240.555 86.166.944Net cash (used in) / provided from financing activities
-2.053.929 10.903.399NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS 31.630.989 20.727.590CASH AND CASH EQUIVALENTS AT 1 JANUARY 29.577.060 31.630.989
77
For further information, please visit http://ir.tav.aero, [email protected]
or call +90-212-463-30-00(x2120, 2122, 2123, 2124)
TAV Airports Holding Co.
Istanbul Ataturk Havalimanı Dış Hatlar Terminali
34149 Yesilkoy, Istanbul
Nursel İLGEN, CFA
Head of Investor Relations
Tel :+90 212 463 3000 / 2122
Fax : +90 212 465 3100
Besim MERİÇ
Investor Relations Senior Associate
Tel :+90 212 463 3000 / 2123
Fax : +90 212 465 3100
TAV Investor Relations
Disclaimer
78
This presentation does not constitute an offer to sell or the solicitation of an offer to buy or acquire any shares of TAV Havalimanlari Holding A.Ş. (the "Company")
in 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 March, 2011.