2020 FIRST QUARTER FINANCIAL RESULTS PRESENTATIONir.tav.aero/uploads/documents/Documents21042020180437_.pdf · FINANCIAL RESULTS PRESENTATION. ... Istanbul’s exit from ATU results

2 0 1 9April 22, 2020

2020 FIRST QUARTER

FINANCIAL RESULTS PRESENTATION

TAV Airports – 1Q20 Results|1

CEO’s Message 2

Changes to the Financials 3

Highlights 4

Summary Financial and Operational Results 5

Traffic Performance 6

Comparison to 1Q20 9

1Q20 P&L 10

Revenue 11

Opex 12

Profitability 13

Debt Structure 14

CAPEX and Dividends 15

Selected Financials by Assets 16

Revenue and EBITDA Bridges 18

Antalya Overview 19

Havas Overview 20

ATU Overview 21

BTA Overview 22

FX 23

Guidance 25

Equity Accounted Investees 26

APPENDIX 27

Quarterly Revenue and EBITDA by Assets 28

Notes on Financials 29

IFRIC 12 30

Income Statement & Balance Sheet & Cash Flow Statement 31

Operating Environment 34

Timeline 35

Concessions Overview 36

TAV Corporate and Shareholder Structure 37

Contact IR 38

TAV Airports Operations Map*

* as of March 31, 2020

CONTENTS


2019 was a year of all time highs in Turkish tourism and 2020 was poised to be another great year as we had achieved 13%growth in international passengers in the first two months of the year. However, with the spread of the COVID-19 pandemic toEurope which is our main source market, one after another, authorities started restricting flights to and from the airports thatwe operate starting with the last week of February and airlines started grounding their planes due to cancelled flights. By thefourth week of March the international traffic in our airports dropped almost to zero.

The guidance that we disclosed for 2020 is thus no longer valid and due to the uncertainties regarding the duration of the saidprecautions, we cannot share a revised guidance for 2020 at this time. However, as soon as the uncertainty regarding theduration of flight restrictions disappears we intend to disclose revised 2020 guidance.

Since this is a force majeure event, we have contacted the aviation authorities to officially notify them that a force majeure event has happened and we would like to start discussions on how to compensate for the consequences of this unforeseeable and uncontrollable event that has affected all of our traffic. At the present we do not expect much international traffic until June and we have stopped all non-emergency capital expenditures. We have also made substantial cuts to our operating expenditures to weather the financial impact of this period. Since most of our terminals are almost 100% closed, we were ableto make significant savings on terminal operation costs. We have also scheduled all of our employees and management to take one third of each coming month as unpaid leave until traffic restarts. The periods of unpaid leave are supported by Short Working Allowance in Turkey for 3 months and differing levels of governmental support is provided for our operations in othercountries. With these measures we have achieved a substantial decrease in our operating expenditures for the zero traffic period.

We have entered this crisis with a strong balance sheet and I can easily say that in the global aviation sector we are one of the very few companies who are ready to take on the challenges of this new period and emerge stronger at the end. To this end, we are continuing the share purchase negotiations for Almaty Airport in Kazakhstan which we believe will be a great addition to our portfolio due to its unlimited operating period, defensive characteristics and significant growth potential. We are also very close to finalizing the debt restructuring discussions in Tunisia which will unlock material value for our shareholders.

Since we believe that the price extremes caused by market volatility created by the pandemic do not reflect the true value ofour shares at all, we started buying our shares back on Borsa Istanbul for which we have earmarked up to 200 million Turkish Lira.

We have weathered many similar crises in the past. This one is the longest and the deepest so far but we will emerge out of thiscrisis even stronger. I would like to thank all our employees, shareholders and business partners for their unending support in this trying period.

CEO’S MESSAGE

Dr. M. Sani SenerCEO & Executive Board Member


1. Net Debt Definition Change – Made in Q1 2020

To harmonize with Groupe ADP reporting practices, Bank Overdrafts and Financial Loans provided to Related

Parties (TAV JVs) have been included in the definition of Net Debt.

Groupe ADP Definition of Net Debt = Current&Non-Current Borrowings +Shareholder Loan and Accrued Interest

+Bank Overdrafts –Cash -Restricted Bank Balances -Financial Loans provided to Related Parties (TAV JVs)

Financial Loans provided to Related Parties (TAV JVs) can be found in IFRS Footnote 20 under Other Related Party

Transactions at lines Current loan to related parties & Non-current loan to related parties

Bank Overdrafts can be found on the Liabilities Page of the IFRS Report

2. Adjusted Revenue and EBITDA – Made in Q1 2020

To harmonize with Groupe ADP reporting practices, reporting of Adjusted Revenue and Adjusted EBITDA has

been discontinued in Q1 2020. In Q1 2020 financials, we only provide IFRS Revenue and EBITDA not adjusted for

IFRIC 12 and before Equity Pick-up.

3. Net Debt Reclassification – Made in Q2 2019

Net Debt has been restated to include the €300m shareholder loan plus accrued interest from Groupe ADP.

4. Discontinued Operations – Made in Q2 2019

All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. As

per IFRS 5.13, Revenue and EBITDA reported after the closure have been restated to exclude the results of TAV

Istanbul

(the concession holder of Istanbul Ataturk Airport). TAV total passenger numbers reported after the closure also do

not include the results of Istanbul Ataturk Airport.

CHANGES TO THE REPORTING OF FINANCIAL RESULTS


HIGHLIGHTS OF 2020 FIRST QUARTER RESULTS (1)

(1) All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. As per IFRS 5.13, Revenue and EBITDA reported

after the closure have been restated to exclude the results of TAV Istanbul. TAV Total pax numbers reported after closure also do not include the results of Istanbul Ataturk Airport.

Consolidated Revenue(1) of €118m

(-22% vs 1Q19)

Revenue impacted by effect of Ataturk’s closure on service companies,

Russian flight ban to Georgia and other airports’ revenue which was

lower despite a very strong first two months, due to flight restrictions that

started mainly in March due to Covid-19 pandemic. Also impacted by

effect of depreciation of Turkish Lira on TL revenue

Net Profit of €-56m

(nm vs 1Q19)The change stems from discontinued operations, EBITDA drop and

performance of Equity Accounted Investees

Net Debt of €791m

(-4% vs 1Q19)Slíght decrease in net debt mainly due to €193m cash collection of the

first installment of Istanbul Compensation Receivable

11m Passengers Served(1)

(-23% vs 1Q19)

-18% international and -26% domestic due flight restrictions that started

mainly in March due to Covid-19 pandemic

Domestic was affected adversely by price caps before the pandemic.

Consolidated EBITDA(1) of €16m

(-57% vs 1Q19)Cost control measures, depreciation of Turkish Lira and lower variable

costs contained opex in EUR


(in m€, unless stated otherwise) 1Q19(*) 1Q20(*) Chg %

Revenue 150.9 118.5 -22%

EBITDA 37.2 16.1 -57%

EBITDA margin (%) 24.6% 13.6% -11.0 ppt

FX Gain /(Loss) 0.4 0.5 20%

Deferred Tax Expense (4.2) (4.6) 10%

Equity Accounted Investees (10.6) (19.6) nm

Net Profit after Minority 23.9 (56.1) nm

Continuing Operations (20.5) (47.8) 133%

Discontinued Operations 44.4 (8.3) -119%

Capex 22.3 6.5 -71%

Net Debt (includes Sh. Loan) 827.3 790.8 -4%Number of employees (av, incl.

Istanbul) 17,095 15,212 -11%

Number of passengers (m) 13.7 10.6 -23%

- International 5.4 4.5 -18%

- Domestic 8.3 6.2 -26%

Duty free spend per pax (€) (*) 6.3 7.5 20%(*) All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th,

2019. As per IFRS 5.13, Revenue and EBITDA reported after the closure have been restated to exclude the

results of TAV Istanbul. TAV Total pax numbers reported after closure also do not include the results of Istanbul

Ataturk Airport.

1Q20 SUMMARY FINANCIAL AND OPERATIONAL RESULTS(*)

Pax(*)

-23%

-18% int. growth

Flights and passenger numbers affected by flight restrictions

that started mainly in March 2020 due to Covid-19 pandemic.

Domestic was affected by price caps before pandemic.

Domestic traffic does not have a very significant effect on TAV

financials. The main driver of financial results is international

traffic.

Revenue(*)

-22%

Revenue impacted by effect of Ataturk closure on service

companies, Russian flight ban to Georgia and other airport

revenue which was lower despite a very strong first two months,

due to flight restrictions that started mainly in March due to

Covid-19 pandemic. Also impacted by effect of depreciation

of Turkish Lira on TL revenue

• Airports 34%, Services 66%

FX Lossnm

FX Gain Loss was immaterial in both periods

EBITDA(*)

-57%

• Cost control measures, depreciation of Turkish Lira and

lower variable costs contained opex in EUR

• Airports 90%, Services 10%

(*) All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. As per IFRS 5.13, Revenue and EBITDA reported

after the closure have been restated to exclude the results of TAV Istanbul. TAV Total pax and SPP numbers reported after closure also do not include the results of

Istanbul Ataturk Airport.

Net Profit nm%

Impacted mainly by Discontinued Activities. Stake increase

to 50% and early closure of Medinah Airport for Umrah and

Istanbul’s exit from ATU results affected Equity Accounted

Investees.

Net Debt -4%

Slíght decrease in net debt mainly due to €193m cash

collection of the first installment of Istanbul Compensation

Receivable. Second installment of €196m expected 1Q21.

Spend per Pax

From €6.3 to €7.5 due to price hikes in Turkish local market in

3Q19

Discont.TAV Istanbul had fx losses totaling €8m due to tax and

dividend payments. The tax fx loss of €4.2m is non-cash

and will be reversed when corporate tax settles.


January – March

Passengers (million) (*) 2019 2020 Chg

Esenboga Airport 3.526 2.522 -28%

International 0.455 0.398 -13%

Domestic 3.071 2.124 -31%

Izmir Airport 2.790 2.185 -22%

International 0.326 0.341 5%

Domestic 2.465 1.845 -25%

Gazipaşa Airport 0.101 0.078 -22%


Domestic 0.085 0.068 -20%

Milas-Bodrum 0.287 0.220 -24%


Domestic 0.287 0.220 -23%

Antalya 2.804 2.359 -16%


Domestic 1.648 1.306 -21%

Medinah 2.070 1.711 -17%

Tunisia (Monastir&Enfidha) 0.220 0.130 -41%

Georgia (Tbilisi&Batumi) 0.855 0.526 -38%

N. Macedonia (Skopje&Ohrid) 0.481 0.430 -11%

Zagreb Airport 0.605 0.484 -20%

TAV TOTAL (*) 13.739 10.646 -23%


Domestic 8.292 6.167 -26%

TRAFFIC PERFORMANCE

Ankara

İzmir

Milas-

Bodrum

Gazipasa

Medinah

Tunisia

Georgia

North

Macedonia

Zagreb

Pax

-18% int. growth

Flights and passenger numbers affected by flight restrictions

that started mainly in March 2020 due to Covid-19 pandemic.

Domestic was affected by price caps before pandemic

* All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul

Airport on April 6th, 2019.

TAV Total figures do not include Ataturk Airport for 2019

Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV

Macedonia, TIBAH and MZLZ, DHMI figures for are tentative for one year. Both

departing and arriving passengers, including transfer pax

Antalya

Flights and passenger numbers affected

across the board by flight restrictions that

started mainly in March 2020 due to Covid-19

pandemic. Please see next page for a timeline

of Covid-19 events.

Before the pandemic, in the first two months of

the year, international traffic was up 13% with

double digit int pax growth in most airports.

Traffic weakness in Georgia had started earlier

due to Russian flight ban put in place in July 19

and the Iran Covid outbreak in February which

is a source market for Georgia. Tunisia was

affected from the Thomas Cook fallout before

the pandemic.


COVID-19 RESTRICTIONS

* March data excludes Zagreb

-100%

-90%

-80%

-70%

-60%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Jan Feb Mar-I Mar-II Mar-III Mar-IV

TAV Airports Traffic* – Major COVID-19 Restrictions

International Domestic

8th-KSA suspended flights with 14 countries

12th-KSA extended suspension with additional 39 countries

13th-TR suspended flights to 9 countries

21th-TR suspended intl’l flights

-Georgia suspended int’l flights

-KSA suspended

dom flights

23th-Georgia suspended flights to Iran

27th-KSA suspended Umrah visits

15th

-KSA

suspended

int’l flights

-Ohrid Airport

closed

16th

-Tunisia

suspended

flights

-TR extended

ban with 6

countries

18th

-Skopje

Airport closed

Jan-TR domtraffic affected by airlines shifting capacity to int. due to price

ceilings in domestic routes

Jan-Strong intgrowth despite Russianflight ban

to Georgia

AirportOfficial Deadline for

RestrictionsAirline Cancellations

Ankara

Int'l - Until Further NoticeDom - 19th April

Cancellations until JuneTHY canceled int. until May 20

IzmirCancellations until Mid JuneTHY canceled int. until May 20

Gazipasa AlanyaCancellations until JulyTHY canceled int. until May 20

BodrumCancellations until Mid JuneTHY canceled int. until May 20

AntalyaCancellations until Mid JuneTHY canceled int. until May 20

Medinah Until Further Notice Hajj is not officially cancelled

Tunisia19th April - possibly to be extended

Most airlines cancelled until Mid-May, TUI cancelled until Q4

Georgia30th April - possibly to be extended

Cancellations until Mid-May, Russiaassumed to be back in H2

Macedonia Until Further Notice Cancellations until Mid-May


AIRPORT SEASONALITY (PERCENTAGE OF PAX BY QUARTER)

0%

10%

20%

30%

40%

50%

60%

Q1 Q2 Q3 Q4

Bodrum

Tunisia

Izmir

Antalya

Macedonia

Georgia

Ankara

Medinah

Airports in order of decreasing seasonality (2019 int. pax):


YOY COMPARISON

Consolidated Revenue (*) (€m) Net Profit after Minority (€m)

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

42%

14%

18%

12%

7% 3%2%

1%

43%

14%

14%

13%

5%

6%2%

3%

0%

Personnel DepreciationOther Cost of ServicesCost of Catering RentMaintenance UtilityConcession Rent

1Q19

1Q20

EBITDA (*) (€m)

20%

19%

17%

12%

8%

3%4%

15%

19%

24%

16%

11%

7%

4%

5%

14%

Aviation GH Catering

Lounge Sublease DF

Software Other

All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. As per IFRS 5.13, Revenue and EBITDA reported after the

closure have been restated to exclude the results of TAV Istanbul. TAV Total pax numbers reported after closure also do not include the results of Istanbul Ataturk Airport.

-22%-57% nm%

151

118

1Q19 1Q20

37

16

1Q19 1Q20

44.4

-8.3-20.5-47.8

1Q19 1Q20

Continuing

Discontinued

24

-56

42%

2%

19%13%

-5%

4%

25%

52%

35% 36%

18%

-15%

-1%

-25%Georgia Havas İzmir Ankara Tunisia Other

Airports

Other

Services

1Q19

1Q20


(€m) 1Q19 1Q20 Chg(%)

Aviation 30.6 22.0 -28%

Ground handling 28.7 28.5 -1%

Catering services 26.1 19.5 -25%

Lounge & loyalty card 18.7 13.4 -29%

Area all., sublease& advertising 12.8 7.8 -39%

Duty free 5.0 4.8 -3%

Software 5.9 5.4 -7%

Car parking 4.5 3.8 -15%

Bus services 3.0 2.5 -17%

Other 15.7 10.7 -32%

Total 150.9 118.5 -22%

1Q20 P&L

(€m) (*) 1Q19 1Q20 Chg (%)

EBITDA 37.2 16.1 -57%D&A &Impairment -17.8 -16.3 -9%

Equity Accounted Investees -10.6 -19.6 84%

EBIT 8.7 -19.8 -327%

Finance income 3.0 3.1 5%

Finance costs -24.5 -23.8 nm

FX gain/(loss) 0.4 0.5 20%

Net finance costs -21.5 -20.7 -4%

Profit before income tax -12.8 -40.4 217%

Tax expense -8.7 -5.8 -34%

Current period tax expense -4.6 -1.2 -74%

Deferred tax (expense) -4.2 -4.6 10%

Discontinued Operations 44.4 -8.3 -119%

Profit for the period 22.9 -54.5 -339%

Non-controlling interest 1.1 -1.5 -246%

Net Profit After Minority 23.9 -56.1 -335%

Continuing Operations -20.5 -47.8 133%

Discontinued Operations 44.4 -8.3 -119%

Revenue

Operating Expenses

Net Profit

(€m) 1Q19 1Q20 Chg (%)

Personnel -55.3 -50.7 -8%D&A &Impairment -17.8 -16.3 -9%Services Rendered -16.0 -15.7 -2%Catering COGS -9.0 -6.2 -31%Rent -4.5 -6.9 55%Maintenance -1.3 -2.6 107%Utility -3.1 -3.4 11%Concession Rent -0.9 -0.2 -72%Other -23.8 -17.8 -25%

Other Operating Income 0.0 1.1 nm

Total -131.6 -118.7 -10%




151

-0.2 -0.3 -0.4 -0.5 -0.7 -5.0 -5.0-5.4

-6.5-8.5

118.5

1Q1

9

DF

GH

Soft

war

e

Bu

s

Car

par

k

AA

,S&

A

Oth

er

Lou

nge

Cat

erin

g

Avi

atio

n

1Q2

0

REVENUE

Spend per

Pax

From €6.3 to €7.5 due to price hikes in Turkish local market in

3Q19

Revenue

-22%

The main items that decreased were aviation, catering, lounge,

other, aas&a while software, ground handling and duty free were

not as much affected.

Aviation

-28%

Drops across the board due to Covid-19. Revenue drop YoY in

Georgia was -7.5 which accounted for bulk of the drop.

Georgia has relatively flatter seasonality with traffic more evenly

spread throughout the year. Georgia was also affected by

Russian flight ban in the first two months.Duty Free

-3%

Ground

Handling

-1%

Total flights served -14%, HAVAS only -6% (fully consolidated), TGS

-17% (equity pick-up)

Ground handling was supported by favorable mix (international

vs. domestic), better pricing at IGA and warehouse revenue

Catering

-25%

Catering affected by closure of Ataturk and lower pax ín most

international operations

Other

-32%Decrease mostly due to closure of Hotel in Ataturk

-22%(€m) 1Q19 1Q201Q20-

1Q19

Chg(%

)

Aviation 30.6 22.0 -8.5 -28%Ground handling 28.7 28.5 -0.3 -1%Catering services 26.1 19.5 -6.5 -25%Lounge & loyalty card 18.7 13.4 -5.4 -29%Area all., sublease&ads 12.8 7.8 -5.0 -39%Duty free 5.0 4.8 -0.2 -3%Software 5.9 5.4 -0.4 -7%Car parking 4.5 3.8 -0.7 -15%Bus services 3.0 2.5 -0.5 -17%Other 15.7 10.7 -5.0 -32%Total 150.9 118.5 -32.5 -22%

Lounge

-29%Affected by Ataurk’s closure and COVID-19 effects on new

lounges

Area All.

-39% Ataturk’s closure affected sublease revenues of BTA.

Bus

-17%Impacted by drop in domestic pax and depreciation of

Turkish Lira

Carpark

-15%Carpark negatively affected by flight restrictions and TL

depreciation

Software

-7%Modest decrease due to changes in some contracts

SPP positively affected by price hikes in Turkish market




132

-6.1-4.6

-2.8 -1.5 -1.1 -0.6 -0.4 0.3 1.4 2.5

119

1Q1

9

Oth

er

Pe

rso

nn

el

Cat

erin

g

Dep

reci

atio

n

Oth

er O

p.

Inc.

Co

nce

ssio

n

CO

SR

Uti

lity

Mai

nte

nan

ce

Ren

t

1Q2

0

(€m) 1Q19 1Q201Q20-1Q19

Chg (%)

Personnel -55.3 -50.7 4.6 -8%D&A &Impairment -17.8 -16.3 1.5 -9%Services Rendered -16.0 -15.7 0.4 -2%Catering COGS -9.0 -6.2 2.8 -31%Rent -4.5 -6.9 -2.5 55%Maintenance -1.3 -2.6 -1.4 107%Utility -3.1 -3.4 -0.3 11%Concession Rent -0.9 -0.2 0.6 -72%Other -23.8 -17.8 6.1 -25%

Other Op. Income 0.0 1.1 1.1 nm

Total -131.6 -118.7 12.9 -10%

OPEX

Services

Rendered

-2%

Notable increases in IT and notable decreases in BTA,

OS and Havas. Drop also supported by weaker TL

Personnel

-8% Due to changes in payment scheduling

Catering COGS

-31%

Catering COGS decreased due to discontinuation of

BTA’s business in Istanbul Ataturk, TL depreciation and

lower other volume due to Covid-19

Depreciation &

Amortization &

Impairment

-9%

With the unit of account methodology depreciation

decreases as pax decreases.

Rent

+55%Rent increase for BTA due to IGA and Orly operationsOpex

-10%Cost control measures and depreciation of Turkish Lira

contained opex in EUR.

Maintenance

+107%Ad Hoc maintenance works in various terminals and service

cos

Utility

+11% Higher utility unit costs and BTA’s IGA operations

Concession

Rent

-72%Decrease due to restructuring in Tunisia

Other

-25%High emphasis on cost control measures also helped by

TL depreciation

-10%




23.9

3.0 1.5 0.8 -2.6 -9.0

-21.1

-52.7 -56.1

1Q19 Tax D&A Finance Minority EAI EBITDA Discont. 1Q20

FX Loss

nm

NET PROFIT

TGS: All JVs under Havas

No material FX Loss

Tax

-34%Decrease due to discontinued operations

Current Tax

-74%Current tax decreased due to discontinued operations

)TIBAH = 33% in 1Q19 vs 50% in 1Q20

EAI

nm%

Stake increase to 50% and early closure of Medinah Airport for

Umrah and Istanbul’s exit from ATU impacted EAI adversely.

EBITDA

-57%Cost control measures, depreciation of Turkish Lira and lower

variable costs contained opex in EUR

EBIT

nm% D&A decreased due to volume drop

Net Finance

Costs

-4%

No material change

Deferred Tax

+10%Deferred tax changes mainly due to TRY denominated investment

incentives

Net Profit

nm%

Discontinued operations affected net income

significantly.Discontinued operations also had fx losses in 1Q20 due

to tax and dividend payments. The tax fx loss of €4.2m is non-cash

and will be reversed when corporate tax settles.

(€m) (*) 1Q19 1Q201Q20-1Q19

Chg (%)

EBITDA 37.2 16.1 -21.1 -57%D&A &Impairment -17.8 -16.3 1.5 -9%

Equity Accounted Investees -10.6 -19.6 -9.0 nm

EBIT 8.7 -19.8 -28.5 nm

Finance income 3.0 3.1 0.1 5%

Finance costs -24.5 -23.8 0.7 nm

FX gain/(loss) 0.4 0.5 0.1 20%

Net finance costs -21.5 -20.7 0.8 -4%

Profit before income tax -12.8 -40.4 -27.7 nm

Tax expense -8.7 -5.8 3.0 -34%

Current period tax expense -4.6 -1.2 3.4 -74%

Deferred tax (expense) -4.2 -4.6 -0.4 10%

Discontinued Operations 44.4 -8.3 -52.7 nm

Profit for the period 22.9 -54.5 -77.4 nm

Non-controlling interest 1.1 -1.5 -2.6 nm

Net Profit After Minority 23.9 -56.1 -80.0 nmContinuing Operations -20.5 -47.8 -27.3 nmDiscontinued Operations 44.4 -8.3 -52.7 nm

+nm%

-10.42

3.38

-1.22 -1.36 -0.82 -0.19

-9.96

-3.81-4.87

0.34

-0.78 -0.51

Antalya ATU TIBAH TGS Zagreb Others

Equity Accounted Investees (€m) 1Q19

1Q20

All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. As per IFRS 5.13, Revenue and EBITDA reported after the closure have been restated to

exclude the results of TAV Istanbul. TAV Total pax numbers reported after closure also do not include the results of Istanbul Ataturk Airport.


Non-recourse

Net Debt(*)

(eop, €m)

Mar

2019

Dec

2019

Mar

2020

Airports 755.5 743.0 975.7

İstanbul -46.6 -40.4 165.8

Ankara 96.4 81.6 73.4

Ege (İzmir) 221.1 190.6 218.4

Gazipasa -30.7 22.1 22.8

Tunisia 356.0 346.1 350.5

Georgia -16.8 -16.2 -16.1

N. Macedonia 34.9 26.5 26.4

Bodrum 141.2 132.8 134.6

Services 71.8 54.8 -184.9

HAVAS 67.7 156.8 162.4

BTA 6.1 36.3 43.2

Holding (solo) -19.0 -153.2 -398.2

Others 17.0 15.0 7.7

Total 827.3 797.8 790.8

DECENTRALIZED DEBT STRUCTURE - PRUDENTLY LEVERED

Gross Debt Maturity Profile(**) (€m)

as of March 31, 2020

(*)To harmonize with Groupe ADP reporting practices, Bank Overdraftsand Financial Loans provided to Related Parties (TAV JVs) have beenincluded in the definition of Net Debt in 1Q20. Past periods have beenrestated to reflect the new definition

Groupe ADP Definition of Net Debt = +Current&Non-Current Borrowings+Shareholder Loan & Accrued Interest +Bank Overdrafts –Cash-Restricted Bank Balances -Financial Loans provided to Related Parties(TAV JVs)

Financial Loans provided to Related Parties (TAV JVs) can be found inIFRS Footnote 20 under Other Related Party Transactions at linesCurrent loan to related parties & Non-current loan to relatedparties. Bank Overdrafts can be found on the Liabilities Page ofthe IFRS Report

** Due to the trilateral negotiations in Tunisia, all financial debt has been

reclassified to short term borrowings. Details can be found in IFRS financials

Note on Loans and Borrowings

Does not include Shareholder Loan from Groupe ADP

Door to Door Maturity 5.9 Years

Average Maturity 3.6 Years

Average € Cost of Debt (Hedged*) 4.1%

Net Debt(*) / 2019 FY EBITDA 2.4

* 71% of all loans have fixed rates

367

175157

384

186

<One Year

(Tunisia)

<One Year

(Istanbul)

<One Year

(Other)

>One Year &

<Five Years

> Five Years


3.3 3.4 3.5

5.5

4.6 4.5

8.1

6.9

2012 2013 2014 2015 2016 2017 2018 2019

3962 66

109 105

6487

128

6053

124 133

218 210

127

175

255

37374%

50%

16%

2011 2012 2013 2014 2015 2016 2017 2018 2019

Dividends Paid Net Income Payout Ratio

CAPEX DEVELOPMENT / DIVIDENDS

Quarterly Cash Capex (€m) Cash Capex

Dividend Yield (%)

Dividend History (€m)

Capex mostly done by Havas, BTA and OS

Capex excludes IFRS16 (non-cash) effects. Consolidated IFRS16 impact (non-cash additions to rights of use assets) €3.6m in 1Q20

All non-emergency capex put on hold since March 2020

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

2020 1QCAPEX €6.5m

20

33

11

28

1617

15

22

7

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Discontinued

Activities

300


(€m) Revenue EBITDA

EBITDA

Margin

(%)

Net Debt

Airports 43.8 14.6 33% 976

Istanbul 166

Ankara 8.8 2.9 33% 73

Ege (İzmir) 12.0 5.8 49% 218

Gazipasa 0.3 -0.5 nm 23

Tunisia 2.5 -2.4 nm 351

Georgia 13.0 8.4 65% -16

N. Macedonia 6.0 0.9 16% 26

Bodrum 1.2 -0.7 nm 134.6

Services 86.7 1.6 2% -185

Havas 27.9 5.7 20% 162

BTA 23.0 -3.3 nm 43

Others 35.8 -0.8 nm -390

Total 130.5 16.1 12% 791

Elimination -12.0

Consolidated 118.5 16.1 14% 791

SELECTED FINANCIALS BY ASSETS AND EMPLOYEE #S (1Q20)

Number of Employees (eop) 1Q19 1Q20

Istanbul 2,284 33

Ankara 934 954

Ege (İzmir) 946 949

Tunisia 756 727

Gazipasa 59 73

Georgia 942 923

N. Macedonia 733 806

Havas 4,602 4,681

BTA 3,212 2,884

Holding 106 120

OS 932 931

Technologies 320 315

Security 1,275 1,696

Latvia 5 5

Bodrum 81 81

Academy - -

TOTAL 17,187 15,178




SELECTED FINANCIALS BY ASSETS

(*) All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019.

As per IFRS 5.13, Revenue and EBITDA reported after the closure have been restated to exclude the results of TAV Istanbul.

Revenue (€m) 1Q19 1Q20 Chg Chg(%)

Airports 55.8 43.8 -12.0 -22%

Ankara 10.6 8.8 -1.8 -17%

Ege (İzmir) 13.0 12.0 -1.0 -8%

Gazipasa 0.4 0.3 -0.1 -17%

Tunisia 3.2 2.5 -0.7 -22%

Georgia 20.5 13.0 -7.5 -37%

N. Macedonia 6.9 6.0 -0.9 -13%

Bodrum 1.3 1.2 -0.1 -6%

Services 113.3 86.7 -26.6 -23%

Havas 27.1 27.9 0.7 3%

BTA 39.7 23.0 -16.6 -42%

Others* 46.5 35.8 -10.7 -23%

Total 169.1 130.5 -38.6 -23%

Elimination -18.2 -12.0 6.2 -34%

Consolidated 150.9 118.5 -32.5 -22%

EBITDA (€m) 1Q19 1Q20 Chg Chg(%)

Airports 26.9 14.6 -12.4 -46%

Ankara 4.7 2.9 -1.8 -39%

Ege (İzmir) 7.2 5.8 -1.3 -18%

Gazipasa -0.5 -0.5 0.0 nm

Tunisia -1.8 -2.4 -0.6 nm

Georgia 15.6 8.4 -7.2 -46%

N. Macedonia 2.2 0.9 -1.2 -56%

Bodrum -0.4 -0.7 -0.3 Nm

Services 10.2 1.6 -8.7 -85%

Havas 0.8 5.7 4.9 606%

BTA 2.3 -3.3 -5.7 nm

Others* 7.1 -0.8 -7.9 nm

Total 37.1 16.1 -21.0 -57%

Elimination

Consolidated 37.2 16.1 -21.1 -57%


37.2

4.90.0 -0.0 -0.3 -0.6 -1.2

-1.3-1.8

-5.7

-7.2

-7.9

16.11

Q19

Ha

va

s

Ga

zipa

sa

Elim

ina

tion

Bo

dru

m

Tun

isia

Ma

ce

do

nia

Izmir

An

ka

ra

BTA

Ge

org

ia

Oth

ers

1Q

20

151

6.2 0.7 0.1 0.1 0.7 -0.9 -1.0 -1.8-7.5

-16.6

-10.7

119

1Q

19

Elim

ina

tion

Ha

va

s

Bo

dru

m

Ga

zipa

sa

Tun

isia

Ma

ce

do

nia

Izmir

An

ka

ra

Ge

org

ia

BTA

Oth

ers

1Q

20

1Q20 CONSOLIDATED REVENUE AND EBITDA BRIDGES BY ASSETS

Revenue* (€m)EBITDA (€m)

*** Equity Pick -up


ANTALYA INTERNATIONAL AIRPORT

Transaction Overview

Transaction

TAV acquires IC Ictas’ 49% stake in ICF Antalya, the joint-venture that manages Antalya Airport

TAV stake entitles it to co-control; i.e. 50% dividend rights and 50% of voting rights

Fraport AG maintains 51% stake

Date of Closing 8 May 2018

Price EUR 360 million cash

Impact on TAV Transaction expected to be EPS accretive

Source of funding

Transaction financed through debt (EUR 300 million) and equity (EUR 60 million)

Consolidation Consolidated by equity method

*EBITDAR=IFRS EBITDA which is before rent amortization

**EBITDA= Adjusted IFRS EBITDA after rent amortization

Antalya Airport Financials (100%)

Note on Pax:

Severe international traffic decrease occured in 2016 with

Russian ban to charters (started late 2015) and security issues

in Turkey. Majority of Russian traffic recovered in 2017 with

the lift of travel ban. Domestic traffic increased non-stop

during last 10 years.

EUR (m) 2014 2015 2016 2017 2018 2019

Revenue 327 303 182 260 324 390

EBITDAR* 283 258 141 223 277 331

EBITDA** 151 130 16 106 158 220

EBITDA Margin 46% 43% 9% 41% 49% 56%

Source for Pax: DHMI

15.2

18.320.5 20.2

21.5 22.1 20.9

11.7

18.5

24

28.6

18.3

22.025.1 25.1

27.028.3 27.8

18.7

26.0

31.6

35.7

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Antalya Pax (m)

IntTotal


27

76

6

109

25

65

5

95

HAVAS TGS HVS E HAVAS + TGS +

HVS E

1Q19

1Q20

HAVAS

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

Havas Solo FX Exposure FY 2019# of Flights Served (‘000)

10%

29%

61%

Revenue

10%

63%

27%

Cost

29.0

36.4 36.4

46.0

31.1

40.8

47.6

39.7

32.4

1.1

6.8

10.6

4.9

0.8

10.312.9

5.73.8

0%

5%

10%

15%

20%

25%

30%

35%

0.0

10.0

20.0

30.0

40.0

50.0

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

Revenue EBITDA Margin

EUR USDTRY

140.9

170.2

27.0 27.1 27.9

47.5 48.1

5.7 0.8 5.7

0%

5%

10%

15%

20%

25%

30%

35%

40%

0

20

40

60

80

100

120

140

160

180

2018 2019 1Q18 1Q19 1Q20



ATU (50%)

ATU Financials (€m) TAV Duty Free Spend per Pax (without Ataturk) (€)

SPP positively affected from price increases in Turkish local market after 3Q19

Istanbul operations discontinued on April 6, 2019 and IGA Luxury stores and Bazaar operations started.

72.184.793.086.5

68.385.8

102.086.0

76.088.2

97.380.6

69.1

43.9 4837.1

23.51.5 4.710.211.1

5.9 4,012.7

3.8 6.910.1 11.67 7.7

4 6.50.2

-1.4

2%

6%

11%

13%

9%10%

12%

8%9%

11%12%

9%

11%

9%

14%

1%

-4%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

-20

0

20

40

60

80

100

120

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20


6.7 6.8 6.86.3

6.7 6.6 6.70 6.906.4

7.5 7.5

201

8

201

9

1Q

18

1Q

19

2Q

18

2Q

19

3Q

18

3Q

19

4Q

18

4Q

19

1Q

20


BTA

BTA Financials (€m)

39.541.7

48.3

37.832.7

40.147.5

38.136.741.744.4

40.139.730.3

37.930.0

23

1.9 2.96.3

0.7 1.9 2.97.0

1.81.62.91

9.4

-6.1

2.40.5

2.8

-6.1-3.3

5% 9%

13%

2%

6%

7%

15%

5%4% 7%

21%

-15%

6%

2%

7%

-20%

-14%

-25%

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

-10.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18

2Q

18

3Q

18

4Q

18

1Q

19

2Q

19

3Q

19

4Q

19

1Q

20


TAV F&B Spend per Pax (without Ataturk) (€)

Predominantly TRY based revenue and opex

Croatia added in 4Q17, Muscat added end of March 2018

Personnel expenses increased significantly in 4Q18 due to employee termination benefits causing sharp decline in EBITDA margin

BTA IDO 100% owned since 1Q19

BTA Orly operations that started in 2Q19 affected by runway renovation in Orly and Aigle Azur’s cease of operations

0.8

0.9

0.7

0.8

0.7

0.8 0.8

1.0

0.8

0.9 0.9

2018 2019 1Q181Q192Q182Q193Q183Q194Q184Q191Q20


Equity Profit or loss

(‘000)Strengthening

of EURWeakening

of EURStrengthening

of EURWeakening

of EUR

31 March 2020

USD (15,996) 15,996

TRY (1,507) 1,507

Other (1,238) 1,238

Total (18,741) 18,74131 December 2019

USD (15,260) 15,260

TRY (2,097) 2,097

Other (2,084) 2,084Total (19,441) 19,441

FX EXPOSURE

Hedging

Subsidiaries, TAV Ege, TAV Macedonia, TAV İşletme, TAV İşletme Americaand TAV Milas Bodrum enter into swap transactions in order to diminishexposure interest rate risk to manage exposure to the floating interest ratesrelating to loans used.

Interest payments of 99%, 100%, 100%, 100% and 90% of floating bank loans

for TAV Ege, TAV Macedonia, TAV İşletme, TAV İşletme America and TAV

Milas Bodrum respectively are fixed with interest rate swaps.

Changes in the fair value of the derivative hedging instrument designatedas a cash flow hedge are recognized directly in equity to the extent that thehedge is highly effective. To the extent that the hedge is ineffective,changes in fair value of the ineffective are recognized in profit or loss.

Sensitivity Analysis

The Group’s principal currency risk relates to changes in the value of the

Euro relative to TRL and USD. The Group manages its exposure to foreign

currency risk by entering into derivative contracts and, where possible, seeks

to incur expenses with respect to each contract in the currency in which the

contract is denominated and attempt to maintain its cash and cash

equivalents in currencies consistent with its obligations.

The basis for the sensitivity analysis to measure foreign exchange risk is an

aggregate corporate-level currency exposure. The aggregate foreign

exchange exposure is composed of all assets and liabilities denominated in

foreign currencies, both short-term and long-term purchase contracts.

A 10 percent strengthening / (weakening) of EUR against the following

currencies at 31 December 2019 and 31 March 2020 would have increased

/ (decreased) equity and profit or loss by the amounts shown below. This

analysis assumes that all other variables, in particular interest rates, remain

constant.


5%

7%

8%

78%

3%

€99m

10%

4%

4%

5%

52%

20%5%

97%

2%

1%

€1.415m

FX EXPOSURE OF OPERATIONS (FY19)

6%3%

12%

54%

23% €30m

€58m

€882m €553m

€25m

€110m

EUR USDTRY

(1) Combined figures, pre-elimination and consolidated adjustment, IFRIC12 adjusted, includes equity-pick up (€33.4m)(2) Includes concession rent expenses (€2.6m), does not include depreciation (€44.8m)

€1.466m

€36m€12m

€204m

Revenue(1) Opex1), (2)

D&A Gross Debt

€480m

OtherOMR GEL TND

€286m

€113m€54m

€23m

€25m

€28m

€77m

€8m

€7m

€5m€3m

€3m


EBITDA

(excluding Istanbul Ataturk Airport)

2019 GUIDANCE AND REALIZATION

Total TAV Airports Pax(excluding Istanbul Ataturk Airport) 90 to 94 million

Subject to our traffic and FX assumptions, excluding passenger and EBITDA generated from Istanbul Ataturk Airport operations in 2019, our company’s targets for 2019 are as follows:

38 to 42 % lower

Capexbetween

€70m to €80m

Guidance Realization

89 million1% below guidance due

to softer than expected

domestic market and to

Russian flight ban to

Georgia

Remarks

43 % lower 1% below guidance

mostly due to Russian

flight ban to Georgia

€69.5m better than guidance


2020 GUIDANCE IS NO LONGER VALID DUE TO COVID-19 RELATED FLIGHT RESTRICTIONS

280.4

14.7

33.4

328.6

EBITDA reported

by ADP*

Ankara

Guaranteed

Pax Revenue

Equity Pick-up EBITDA reported

by TAV

2019FY EBITDA Reconciliation

Starting with 2020, we will discontinue reporting adjusted EBITDA.

The basis for 2020 EBITDA guidance is EBITDA reported by Groupe ADP which is before equity pick-up and does not include

Ankara Guaranteed Pax Revenue.

2019 2020

Total Pax (m) 89.13/5%

growth

Int Pax(m) 55.44/6%

growth

EBITDA reported by Groupe ADP (*) (€m)

280.49/11%

growth

Capex(€m) 69.5 70/75

Note: 2020 targets are subject to our fx and passenger

assumptions. 2019 passengers do not include Istanbul

Ataturk.

*before Groupe ADP consolidation effects*before Groupe ADP consolidation effects


EQUITY ACCOUNTED INVESTEES – IFRS 11

FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

Antalya(50%) ¹

Revenue 130.2 12,0 43,4 77.1 29.5 161.9 12.1 55.5 89.0 38.2 194.8 10.6

Adj. EBITDAR ² 111.3 4.3 41.1 69.7 23.5 138.7 6.5 48.4 80.7 29.8 165.5 5.6

Adj. EBITDA ² 52.8 -10.9 25.8 55.2 8.9 79.0 -7.3 34.6 66.8 15.8 109.9 -7.6

Net Profit 20.0 -12.4 16.8 34.1 6.9 45.4 -12.6 28.4 49.9 9.5 75.1 -12.7

Net Debt -21.2 29.9 54.0 34.5 -7.8 -7.8 78.6 65.8 25.4 10.5 10.5 59.8

PPAA ³ -8.5 -19.3 -9.0 -36.8 2.2 -14.3 -25.9 -5.4 -43.5 2.7

Net Profit+PPAA4 8.5 14.8 -2.1 21.2 -10.5 14.1 24.0 4.1 31.6 -10.0


ATU (%50)

Revenue 342.1 76.0 88.2 97.3 80.6 342.0 69.1 43.9 48.0 37.1 198.1 23.5

EBITDA* 28.7 6.9 10.1 11.6 7.0 35.6 7.7 4.0 6.5 0.2 18.4 -1.4

Net Profit 20.5 5.0 7.5 7.5 2.1 22.1 3.3 2.7 4.5 -2.2 9.3 -3.9

Net Debt -4.6 -9.3 -5.4 -15.1 -18.9 -18.9 -19.0 4.1 -1.6 8.1 8.1 11.7


TGS (50%)

Revenue 126.7 29.0 36.4 36.4 46.0 147.8 31.1 40.8 47.6 39.7 159.2 32.4

EBITDA 15.6 1.1 6.8 10.6 4.9 23.4 0.8 10.3 12.9 5.7 29.6 3.8

Net Profit 9.4 0.3 5.2 9.9 0.4 15.8 -1.5 4.1 8.2 1.1 11.9 0.3

Net Debt -11.4 0.0 0.0 0.0 -3.7 -3.7 -0.3 8.7 -1.7 8.2 8.2 -3.2

(50% with 2Q19 33% before) FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

TIBAH (Medinah)

Revenue 70.2 16.8 17.3 23.1 13.9 71.2 17.9 36.2 35.9 24.3 114.3 30.6

EBITDA 15.1 4.2 3.9 6.0 2.3 16.4 4.1 8.4 10.0 3.9 26.4 5.5

Net Profit -11.6 -1.6 -1.8 -0.6 -4.5 -8.5 -1.2 -4.8 -1.4 -8.2 -15.6 -4.9

Net Debt 283.0 274.9 294.4 284.2 299.9 299.9 302.9 445.6 457.9 454.6 454.6 474.6

1 TAV Airports’ 49% stake in TAV Antalya entitles it to equal governance and 50% of dividends.2 Adjusted EBITDAR defined as IFRS EBITDA (which is before concession rent amortization.) Adjusted EBITDA defined as IFRS EBITDA after concession rent amortization 3 TAV Airports’ Purchase Price Allocation (PPA) Amortization for Antalya Airport. Purchase Price Allocation for TAV Antalya was changed in 4Q18 to include no goodwill 4 TAV Antalya’s net contribution to TAV Airports EBITDA since share purchase in May 2018.

*50% after 2Q19


QUARTERLY REVENUE & EBITDA BY ASSETS

As per IFRS 5.13, Revenue and EBITDA reported after the closure have been restated to exclude the results of TAV Istanbul

m€ 1Q19 1Q20

Airports 55.8 43.8

Ankara 10.6 8.8

Izmir 13.0 12.0

Gazipasa 0.4 0.3

Tunisia 3.2 2.5

Georgia 20.5 13.0

N. Macedonia 6.9 6.0

Milas Bodrum 1.3 1.2

Services 113.3 86.7

Havas 27.1 27.9

BTA 39.7 23.0

Other 46.5 35.8

Total 169.1 130.5

Eliminations -18.2 -12.0

Consolidated Revenue 150.9 118.5

Airports 26.9 14.6

Ankara 4.7 2.9

Izmir 7.2 5.8

Gazipasa -0.5 -0.5

Tunisia -1.8 -2.4

Georgia 15.6 8.4

N. Macedonia 2.2 0.9

Milas Bodrum -0.4 -0.7

Services 10.2 1.6

Havas 0.8 5.7

BTA 2.3 -3.3

Others 7.1 -0.8

Total 37.1 16.1

Eliminations 0.0 0.0

EBITDA 37.2 16.1


1Q19 1Q20

Name of Subsidiary Consolidation % Stake Consolidation % Stake

TAV Istanbul Full - No Minority 100 Full - No Minority 100

TAV Esenboga Full - No Minority 100 Full - No Minority 100

TAV Ege Full - No Minority 100 Full - No Minority 100

TAV Gazipasa Full - No Minority 100 Full - No Minority 100

TAV Macedonia Full - No Minority 100 Full - No Minority 100

TAV Latvia Full - No Minority 100 Full - No Minority 100

TAV Tunisia Full - With Minority 67 Full - No Minority 100

TAV Urban Georgia (Tbilisi) Full - With Minority 80 Full - With Minority 80

TAV Batumi Full - With Minority 76 Full - With Minority 76

TIBAH Development Equity 33 Equity 50

TIBAH Operation Equity 51 Equity 51

HAVAS Full - No Minority 100 Full – No Minority 100

BTA Full - With Minority 67 Full – No Minority 100

TAV O&M Full - No Minority 100 Full - No Minority 100

TAV Technologies Full - No Minority 100 Full – No Minority 100

TAV Security Full - No Minority 100 Full - No Minority 100

HAVAS Latvia Full - No Minority 100 Full - No Minority 100

ATU Equity 50 Equity 50

TGS Equity 50 Equity 50

BTA Denizyollari (IDO) Equity 50 Full – No Minority 100

MZLZ Equity 15 Equity 15

MZLZ Operations Equity 15 Equity 15

TAV Milas Bodrum Full - No Minority 100 Full - No Minority 100

TAV Akademi (Academy) Full - No Minority 100 Full - No Minority 100

Havas Saudi Equity 67 Equity 67

Tunisia Duty Free* Proportionate 30 Proportionate 30

Antalya Equity 49** Equity 49**

NOTES ON FINANCIALS

**Tunisia Duty Free is 30% held and proportionately consolidated to ATU because ATU has 65% of the voting rights.**49% Stake in Antalya gives TAV equal governance and 50% of dividends

Basis of

Consolidation

The consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

Although the currency of the country in which the Group is domiciled is Turkish Lira (TRL), most of the Group entities’ funct ional currency and reporting currency is EUR.

Each entity is consolidated as follows:

Summary IFRS Consolidation Table


Guaranteed Pax Structure 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

An

ka

ra

International Departing Pax (m) 0.8 0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.2 1.2 1.3 1.3 1.4 1.5 1.6 0.6

Guaranteed Pax Income (€m) 11.8 12.4 13.0 13.7 14.4 15.1 15.8 16.6 17.5 18.3 19.2 20.2 21.2 22.3 23.4 9.6

Domestic Departing Pax (m) 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.9 0.9 1.0 1.0 1.1 1.1 1.2 1.2 0.5

Guaranteed Pax Income (€m) 1.9 2.0 2.1 2.2 2.3 2.4 2.5 2.7 2.8 2.9 3.1 3.2 3.4 3.6 3.7 1.5

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

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

İzm

ir

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

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

Total Guaranteed Pax Income (€m) 29.6 30.8 32.0 33.3 34.6 35.9 37.4 19.3 20.2 21.3 22.3 23.4 24.6 25.8 27.1 11.1

IFRIC 12

Introduction to IFRIC 12 IFRIC 12 booking model

IFRIC 12- is an accounting application treating BOT assets with special provisions forguaranteed income. Ankara Esenboga Airport and Izmir Adnan Menderes AirportInternational Terminal, with their guaranteed passenger fee structures, fall underthe scope.

The capex we incur on our BOT assets, is routinely booked as “airport operationright” in the balance sheet. However when there are guaranteed passenger fees inquestion, these fees are discounted to their NPV and subtracted from the “airportoperation right” of the BOT in question. The remaining capex amount gets bookedas “airport operation right” and the NPV of guaranteed passenger fees getsbooked as “trade receivables.”

When the guaranteed passenger fees become earned during the course ofoperations, these are credited from the balance sheet and the differencebetween discounted (NPV of) guaranteed passenger fees and the actual fees asthey are earned are booked as finance income.

Due to the application of IFRIC 12, guaranteed passenger fees stop being P&Litems and get treated as Balance Sheet/Cash Flow items, while at the same time,part of these fees gets shown as finance income.

On the other hand the capex incurred during the construction phase isimmediately transferred to P&L with an offsetting construction income assigned toit. This income may or may not carry a mark-up on it.

Debit Credit1. During Construction

BS DebtBS CashBS Construction in progressPL Construction Expense Construction Income

2. Completion of ConstructionBS Construction in progress

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

BS Airport Operation Right *

3. Operations During YearPL Aviation Income for the Current Year **BS Cash **

4. Year ClosePL Aviation Income for the Current Year ***

PL

Was: Finance IncomeIs: Other operating revenue (Difference between discounted receivables and

the actual

receivables)

BS Passenger Revenue Receivable****

PL Amortisation of Airport Operation Right

BSAccumulated Amortisation of Airport Operation Right

* AOR = Construction in progress-(NPV of Passenger Revenue Receivable

** TR-GAAP

*** IFRS (IFRIC 12 application)

**** Discounted guaranteed passenger revenue

for that period


IFRS INCOME STATEMENT

INCOME STATEMENT (€m) 1Q19 1Q20

Construction revenue 0.0 0.0

Operating Revenue 150.9 118.5

Aviation income 30.6 22.0

Ground handling income 28.7 28.5

Commission from sales of duty free goods 5.0 4.8

Catering services income 26.1 19.5

Other operating revenue 60.6 43.6

Construction expenditure 0.0 0.0

Operating expenses -131.6 -119.8

Cost of catering inventory sold -9.0 -6.2

Cost of services rendered -16.0 -15.7

Personnel expenses -55.3 -50.7

Concession rent expenses -0.9 -0.2

Depreciation and amortization expense -17.8 -16.3

Other operating expenses -32.6 -30.7

Other operating income 0.0 1.1

Equity Pick-up -10.6 -19.6

Operating profit 8.7 -19.8

Finance income 3.0 3.1

Finance expenses -24.5 -23.8

Profit before income tax -12.8 -40.4

Income tax expense -8.7 -5.8

Profit from continuing operations -21.5 -46.2

Profit from discontinued operations 44.4 -8.3

Net Profit 22.9 -54.5

Minority 1.1 -1.5

Net Profit After Minority 23.9 -56.1


EQUITY AND LIABILITIES (€m) FY19 1Q20

Share capital 162.4 162.4

Share premium 220.3 220.3

Legal reserves 122.0 122.0

Other reserves -29.6 -29.6

Treasury reserves - -2.7

Purchase of shares of entities under common

control 40.1 40.1

Cash flow hedge reserve -59.2 -70.9

Translation reserves -37.4 -51.2

Retained earnings 900.8 768.7

Total equity attributable to equity holders of the

Company 1319.3 1159.0

Non-controlling interests -9.7 14.3

Total Equity 1309.6 1173.3

Loans and borrowings 633.4 627.2

Reserve for employee severance indemnity 18.7 18.3

Due to related parties 305.9 308.1

Derivative financial instruments 36.6 39.2

Deferred income 17.0 16.5

Other payables 599.7 588.9

Deferred tax liabilities 20.7 19.7

Total non-current liabilities 1631.9 1618.0

Bank overdraft 1.4 1.8

Loans and borrowings 526.8 703.7

Trade payables 55.5 45.3

Due to related parties 1.0 0.6

Current tax liabilities 98.6 91.8

Other payables 198.0 191.1

Provisions 5.5 4.7

Deferred income 14.4 13.5

Total current liabilities 901.3 1052.5

Total Liabilities 2533.2 2670.5

TOTAL EQUITY AND LIABILITIES 3842.8 3843.8

ASSETS (€m) FY19 1Q20

Property and equipment 205.7 194.2

Intangible assets 13.6 13.3

Airport operation right 1581.9 1567.7

Right of use assets 58.6 60.0

Equity-accounted investees 393.4 374.7

Goodwill 137.7 137.6

Trade receivables 49.7 45.5

Non-current due from related parties 1.9 2.5

Other non-current assets 295.6 104.3

Deferred tax assets 26.6 22.2

Total non-current assets 2764.7 2522.0

Inventories 8.9 8.7

Trade receivables 116.2 106.0

Due from related parties 26.9 27.1

Other receivables and current assets 273.2 350.6

Cash and cash equivalents 583.8 785.2

Restricted bank balances 69.0 44.2

Total current assets 1078.1 1321.8

TOTAL ASSETS 3842.8 3843.8

BALANCE SHEET


CASH FLOW STATEMENT

CASH FLOWS FROM OPERATING ACTIVITIES 1Q19 1Q20

Profit for the period -21.5 -46.2Profit from discontinued operations 44.4 -8.3

Amortisation of airport operation right 11.3 7.0

Depreciation of property and equipment 14.8 8.6

Amortisation of intangible assets 0.6 0.7

Concession and rent expenses 35.2 0.2

Provision for employee severance indemnity 0.8 0.9

Provision for doubtful receivables 0.5 0.1

Provision set for unused vacation 0.7 -0.3

Discount on receivables and payables, net -0.1 -1.3

Gain on sale of property and equipment -1.1

Interest income -4.4 -3.4

Interest expense on financial liabilities 15.3 14.0

Tax expense 22.8 7.3

Unwinding of discount on concession receivable

and payable 5.3 5.6

Share of profit of equity-accounted investees, net

of tax 10.6 19.6

Unrealised foreign exchange differences on

statement of financial position items -20.9 -12.6

Cash flows from operating activities 115.5 -9.3

Change in current trade receivables -8.1 8.0

Change in non-current trade receivables 6.2 4.3

Change in inventories 0.0 -0.1

Change in due from related parties 3.2 3.1

Change in other receivables and assets -12.2 113.7

Change in trade payables 0.7 -7.1

Change in due to related parties 0.3 -1.0

Change in other payables and provisions 3.2 -39.8

Cash provided from operations 108.8 71.7Income taxes paid -13.2 -9.2Retirement benefits paid -1.4 -1.0

Net cash provided from operating activities 94.2 61.5

CASH FLOWS FROM INVESTING ACTIVITIES 1Q19 1Q20

Proceeds from sale of property, equipment

and intangible assets 1.7 0.6

Additions to property, plant and equipment

and intangible assets related with acquisition

of subsidiary -4.9

Acquisition of property and equipment -15.1 -6.2

Acquisition of intangible assets-0.5 -0.3

Change in due from related parties -8.8 5.4

Change in due to related parties -25.1

Dividends from equity-accounted investees 68.4 0.9

Effect of acquisition of subsidiary -2.2

Net cash provided from/(used in) investing

activities 13.4 0.4

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 7.1 192.1

Repayment of borrowings -15.9 -18.7

Dividends paid -123.7 -57.6

Interest received 4.2 0.9

Interest paid -1.2 -0.1

Change in due to related parties -0.2 0.1

Purchase of treasury shares -2.7

Change in restricted bank balances 20.8 24.9

Change in finance lease liabilities -0.8 0.3

Net cash provided from/(used in) in financing

activities -109.7 139.1

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS -2.0 201.0

CASH AND CASH EQUIVALENTS AT 1 JANUARY 552.2 582.4

CASH AND CASH EQUIVALENTS AT 31 MARCH 550.1 783.4


40.9 41.1

48.9 48.7 48.6 49.151.3 50.1

62.3

40.0

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Passenger Growth in Selected Airports (1Q20) Number of Tourists Visiting Turkey

TAV Airports’ Market Share (%) in Turkey

OPERATING ENVIRONMENT

Source: Company Data

Source: Ministry of Tourism

Source: DHMI

1.8 1.71.5 1.7

2.2

3.3

4.0

5.3

6.66.3

5.4

4.3

2.2 2.1

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

2020 2019 2018

-20.4%

-20.8%

-20.9%

-24.9%

-23.0%

AENA

Schiphol Airport

Paris Aéroport

Frankfurt Airport

TAV (post Ataturk Airport)

Turkish market share increased with addition of Antalya

Airport to the portfolio and decreased with the shutdown of

Ataturk Airport

Remarks


TIMELINE

2020

TRY 392 million cash dividends paid

Covid-19 related travel restrictions

First installment of Istanbul compensation of

EUR 193m collected in cash

Q1

2018 2019

TRY 758 million cash dividends paid

BTA IDO stake increased to 100%

TAV OS acquired 70% of Spanish Lounge

operator GIS

Q1TRY 406 million cash dividends paid

Signed SPA to purchase 49% of Antalya

Airport with co-control and equal

dividend rights from IC for EUR 360 million

Q1

Antalya Airport share transfer took place

in May 2018

TGS contract renewed for 15 more years

Guidance revision for 2018

Q2

Volatility in markets

Q3

TAV Airports Holding included in Turquality

program

EUR 10million impairment of Milas Bodrum

reversed

Employee termination benefits provisioned

Higher PPAA allocation for Antalya Airport

due to change in accounting

Q4

Commercial traffic of Istanbul Ataturk Airport

transferred to Istanbul Airport

BTA Orly operations started

Stake in TIBAH (Medinah) increased to 50%

Q2

Q3

€389m of pre-tax compensation income

accrued due to early closure of Ataturk

Tunisian concession agreement with the

authority restructured.

Shareholding in Tunisia increased to 100%

Q4

Russian flight ban to Georgia


CONCESSION OVERVIEW

Airport Type/Expire TAV Stake Scope 2019 Pax

(mppa)

fee/pax

Int'l

fee/pax

Dom.

Security

fee/pax int’l(7)

Volume

Guarantee

Yearly Lease/

Concession Fee

Paid

Ankara Esenboga

BOT

100% Terminal 13.7€15

€2.5 (Transfer)€3 €1.5

0.6m Dom. ,

0.75m Int'l for

2007+5% p.a

-(May 2023)

Izmir A.Menderes

(Ege)

Concession100% Terminal 12.4

€15

€2.5 (Transfer)€3 €0.75 No

€29m+VAT (1)

(December 2032)

Gazipasa Alanya Lease

100% Airport 1.1 €12 TL10 €1.0 No $50,000+VAT+65%

of net profit(May 2034)

Milas BodrumConcession

(December 2035)100% Terminal 4.3 €15 €3

€0.75No

€143.4m upfront+

€28.7m+VAT (2)

AntalyaConcession

(December 2024)50%(6) Terminal 35.7

€15

€2.5 (Transfer)€3

€0.75No €100.5m + VAT

Tbilisi BOT

80% Airport 3.7 US$24 US$6 - No -(February 2027)

Batumi BOT

76% Airport 0.6 US$12 US$7 - No -(August 2027)

Monastir&Enfidha BOT+Concession

100% Airport 3.0 €13 €1 €0.8 No

11-26% of

revenue from(8)

(May 2047) 2010 to 2047

Skopje & Ohrid

BOT+Concession

100% Airport 2.7€11.5 in Skopje,

€10.2 in Ohrid-

€6.5 in

Skopje, €6.5

in Ohrid

No

4% of the gross

annual turnover (3)(March 2030)

Medinah

(TIBAH)

BTO+Concession50% Airport 8.4 SAR 91 (4) - - No 54.5% (5)

(2037)

Zagreb

(MZLZ)

BOT+Concession

(April 2042)15% Airport 3.4

€17

€7.5 €6.5 No

€2.0 - €11.5m

fixed

0.5% (2016) - 61%

(2042) variable€4 (Transfer)

Istanbul Ataturk* Lease

100% Terminal 16.0US$15

€3 €1.5 No $140m + VAT (January 2021) €2.5 (Transfer)

1) Accrual basis: Depreciation expense of €13.5m in 2015 to €32.4m in 2032 plus finance expense of €17.8m in 2015 to €0m in 2032

2) Accrual basis: Depreciation expense of €11.1m in 2016 to €38.0m in 2032 plus finance expense of €18.8m in 2016 to €0m in 2032

3) The percentage will be tapered towards 2% as passenger numbers increase.

4) SAR 91 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years,

5) Was reduced to 27.25 % for the first two years after construction of new terminal in Q2 2015

6) TAV Airports’ 49% stake in Antalya Airport entitles it to equal governance and 50% of dividends.

7) Security fee for int’l pax are collected in Turkish Airports starting from January 2019.

8) The concession fees have been restructured in November 2019 with this multiplier: (*35% if pax<4m, *75% if 4m<pax<5m, *125% if 5m<pax<7.5m, *150% if pax>7.5m)

*All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. DHMI had stated that it would reimburse our company for loss of profit due to opening of the New

Istanbul Airport before the end of TAV Istanbul's lease period which ends on January 3, 2021.


5.06%

1.18%

3.20%

44.45%

46.12%

Academy (100%)

TAV CORPORATE AND SHAREHOLDER STRUCTURE

Shareholder Structure (as of December 2019)

Shareholders

TAV Airports Holding Co.

1

2

3 4

5

*Through Tank oWA Alpha GMBH

1. Groupe ADP*

Internationally acclaimed airport operating company

with global operations

2. Tepe Insaat Sanayi A.S.

Turkish integrated conglomerate focused on infrastructure

and construction

3. Sera Yapi Endustrisi A.S.

Focused on construction in Turkey & MENA region

4. Other Non-floating

5. Other Free Float

Airport Companies Service Companies

ATU (50%)

BTA (100%)

OS (100%)

TAV Technologies

(100%)

Security (100%)

Havas (100%)

Esenboga (100%)

Adnan Menderes (100%)

Gazipasa Alanya (100%)

Milas Bodrum (100%)

Medinah (50%)

Tbilisi (80%) & Batumi (76%)

Monastir & Enfidha (100%)

Skopje & Ohrid (100%)

Latvia (100%)

Zagreb (15%)

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

Antalya (50%)

*All commercial traffic of Istanbul Ataturk Airport was transferred to the New Istanbul Airport on April 6th, 2019. DHMI had stated that it would reimburse our company for loss of profit due to opening of the New Istanbul Airport before the end of TAV Istanbul's lease period which ends on January 3, 2021.

TGS (50%)

Havas Latvia (100%)

Havas Saudi (67%)

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


CONTACT IR

IR Team About TAV Airports

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

Ali Ozgu CANERİInvestor Relations [email protected] :+90 212 463 3000 / 2124Fax : +90 212 465 3100

IR Website

e-mail

Phone

Twitter

Facebook

Address

Turkey

Georgia

Tunisia

North Macedonia

Saudi Arabia

Latvia

Croatia

• Ankara Esenboga

• Izmir Adnan Menderes

• Gazipasa Alanya

• Milas Bodrum

• Antalya

Tbilisi and Batumi

Monastir and Enfidha

Skopje and Ohrid

Medinah

Riga (only commercial areas)

Zagreb

TAV Airports through its affiliates and subsidiaries, in auxiliary airport services

including duty free, food and beverage, ground handling services, IT, security

and operation services. As part of these diversified services TAV Airports also

operates the duty-free, food and beverage and other commercial areas at

Riga Airport in Latvia. In 2019, the company provided services for 600 thousand

flights and 89 million passengers. The Company’s shares are listed in Borsa

Istanbul since February 23, 2007, under the ticker code “TAVHL”

http://ir.tav.aero

[email protected]

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

twitter.com/irTAV

facebook.com/irTAV

TAV Airports Holding Co.

Vadistanbul Bulvar, Ayazaga Mahallesi Cendere Caddesi

No:109L 2C Blok 34485 Sarıyer/Istanbul

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

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

http://ir.tav.aero/

mailto:[email protected]


DISCLAIMER

This presentation does not constitute an offer to sell or the solicitation of an offer to buy or acquire any shares of TAV Havalimanlari

Holding A.S. (the "Company") in any jurisdiction or an inducement to enter into investment activity. No information set out in this

document or referred to in such other written or oral information will form the basis of any contract.

The information used in preparing these materials was obtained from or through the Company or the Company’s representatives or

from public sources. No reliance may be placed for any purposes whatsoever on the information contained in this presentation or on

its accuracy, completeness or fairness. The information in this presentation is subject to verification, completion and change. While the

information herein has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no

responsibility or liability is or will be accepted by the Company or any of its group undertakings, employees or agents as to or in relation

to the accuracy, completeness or fairness of the information contained in this presentation or any other written or oral information

made available to any interested party or its advisers and any such liability is expressly disclaimed. This disclaimer will not exclude any

liability for, or remedy in respect of fraudulent misrepresentation by the Company.

This presentation contains forward-looking statements. These statements, which may contain the words “anticipate”, “believe”,

“intend”, “estimate”, “expect” and words of similar meaning, reflect the Company’s beliefs, opinions and expectations and,

particularly where such statements relate to possible or assumed future financial or other performance of the Company, are subject to

risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include, among other factors,

changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These

and other factors could adversely affect the outcome and financial effects of the plans and events described herein. These forward-

looking statements speak only as at the date of this presentation. The Company expressly disclaim any obligation or undertaking to

disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s

expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Past

performance cannot be relied upon as a guide to future performance. As a result, you are cautioned not to place reliance on such

forward-looking statements.

Information in this presentation was prepared as of April 22, 2020.