TAV Airports Holding Management Presentation May 2013
Contents
Page
Operational and Financial Highlights 3
Appendix 19
2
TAV Airports Holding
3
TGS (50%)
Havaş Europe (67%)
Airport Companies
Atatürk (100%)
Esenboğa (100%)
Adnan Menderes (100%)
Gazipaşa (100%)
Tbilisi & Batumi (76%)
Monastir & Enfidha (67%)
Skopje & Ohrid (100%)
Latvia (100%)
Medinah (33%)
Service Companies
ATÜ (50%)
BTA (67%)
Havaş (100%)
O&M (100%)
IT (99%)
Security (100%)
2012 Revenues/EBITDA(3) (€m)
631/268 255/28 115/11 211/21 92/10
Airports Duty Free Food and Beverage
Ground Handling
Others
TAV Airports Overview
O&M, IT and Security
TAV O&M (100%):
Commercial area
allocations & lounges, travel
agency services, TAV Passport
TAV IT (99%):
Airport IT services
TAV Security (100%):
Security service provider in Istanbul, Ankara, Izmir and Gazipasa
TAV Latvia (100%):
Commercial area management in Riga Airport
Turkey
Istanbul Ataturk Airport (100%),
Ankara Esenboğa Airport (100%),
Izmir Adnan Menderes Airport (100%),
Gazipasa Airport (100%)
Georgia
Tbilisi and Batumi Airports (76%)
Tunisia
Monastir and Enfidha Airports
(67%)
Macedonia
Skopje and Ohrid Airports (100%)
Saudi Arabia
Medinah Airport (33%)
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, and Tunisia
Operates Istanbul Airport Hotel (131 rooms)
Total seating capacity of 12.500 at 146 points
Bakery & pastry factory serving in Turkey
BTA Marine (50%) is the F&B operator of Istanbul Deniz Otobusleri (IDO)
HAVAŞ (100%)
Major ground handler in Turkey with a c.65% (1) share
Operates in 24 airports in Turkey including Istanbul, Ankara, Izmir and Antalya
TGS (%50) (2) operates in Istanbul (AHL&SGA), Ankara, Izmir, Antalya and Adana
%67 partner of Havaş Europe, operating in Riga and Germany (six locations)
(1) Based on number of flights for 2012 (2) TGS started operations in January 2010 (3) Revenues and EBITDA represent the proportional interest of these companies in TAV Airports (50% of ATÜ revenues) (before eliminations)
4
TAV Airports 2013 Guidance
Notes:
All financial targets have been adjusted to reverse the effects of IFRIC 12 and IFRS 11 in 2013 financials.
IFRS 11 is applied for the first time to 1Q2013 financials and retrospectively to FY2012 financials.
All financial targets are subject to the passenger targets being met.
5
Growth in Istanbul Ataturk Airport Passengers
Growth in Total TAV Airports Passengers
Growth in Revenues
Growth in EBITDA
Consolidated CAPEX
14 to 16 percent
15 to 18 percent
14 to 16 percent
17 to 19 percent
€330 million to €350 millon
Aéroports de Paris Acquired 38% of TAV Airports in May 2012
6
Pre-Transaction Shareholder Structure Post-Transaction Shareholder Structure
(1) 26.1%
(2) 26.1% (3)
4.0%
(4) 3.5%
(5) 40.3%
(1) 8.1% (2)
8.1%
(3) 2.0%
(4) 3.5%
(5) 40.3%
(6) 38.0%
1. Tepe Insaat Sanayi A.Ş. Turkish integrated conglomerate focused on infrastructure and
construction 2. Akfen Holding A.Ş. Holding company operating in the infrastructure, construction, seaport,
REIT and energy sector
3. Sera Yapi Endustrisi A.Ş. Focused on construction in Turkey & MENA region 4. Other Non-floating 5. Free Float 6. Aéroports De Paris* Internationally acclaimed airport operating company with global operations
*Through Tank ÖWA alpha GmbH
Aéroports de Paris (ADP) is one of the leading European airport groups:
EUR 2,502mm revenue and EUR 972mm EBITDA in 2011
88mm pax in Paris (CDG and ORY) + 40mm Pax under management in 9 countries
Over 9,100 professionals
ADP acquired
38% of TAV Airports for a total consideration of USD 874mm (TRL 11.3 per share)
Senior management team of TAV Airports to remain in place and committed to the business post-transaction, Deputy CEO appointed by ADP
Board structure is 3 Tepe&Akfen, 3 ADP, CEO and 4 independents (formerly 3 Tepe, 3 Akfen, CEO, 2 independents)
ADP – TAV Airports: A Global Footprint
7
France
Paris-CDG: 62mn pax
Paris-Orly: 27mn pax
Owner and operator
Schiphol Group (8%)
51mn pax
Industrial cooperation
Liège (25.6%)
0.6mn tons of freight
Strategic partner
Jeddah (Hajj Terminal) –
Saudi Arabia
7mn pax
Management contract
Amman – Jordan (9.5%)
6mn pax
Management contract
Strategic partner
Cambodian Airports
Phnom Penh & Siam Reap:
4mn pax
Assistance in management
Conakry Airport (29%)
0.3mn pax
Operator
Algier Airport
5mn pax
Operator
Mauritius (10%)
3mn pax
Operator
Strategic partner
Tunisia (67%)
Enfidha & Monastir
3.3mn pax
Concession operator
Turkey
Istanbul Ataturk: 45mn pax
Ankara: 9mn pax
Izmir: 9mn pax
Gazipasa
Concession operator
Georgia (76%)
Tbilisi & Batumi: 1.4mn pax
Concession operator
Macedonia (100%)
Skopje & Ohrid: 0.9mn pax
Concession operator
Medinah (Saudi Arabia) (33%)
Concession operator
13 Regional airports
Mexico North Central (25.5%)¹
13mn pax
Operator & Strategic partner
TAV Airports
ADP
Source: ADP, TAV Airports
Notes: Mexico: ADP holds a 25.5% stake in the Mexican company Servicios de Tecnología Aeroportuaria (SETA), which itself has a 16.7% stake in holding company Grupo Aeroportuario del Centro Norte (GACN), which controls 13 airports in the
north and centre of Mexico, including Monterrey International Airport
Passenger numbers are for FY 2012.
A platform of 37 airports under management representing 200m Pax
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013 2012 2011 2010
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2013 2012 2011 2010
8 8
January-March FY
Passengers (1) 2012 2013 Chg % 2011 2012 Chg %
Ataturk Airport 9.144.058 11.216.643 23% 37.394.694 44.998.508 20%
International 5.938.655 7.406.177 25% 23.973.158 29.717.196 24%
Domestic 3.205.403 3.810.466 19% 13.421.536 15.281.312 14%
Esenboga Airport (2) 2.137.710 2.405.357 13% 8.485.467 9.237.886 9%
International 306.987 335.842 9% 1.405.395 1.574.039 12%
Domestic 1.830.723 2.069.515 13% 7.080.072 7.663.847 8%
Izmir Airport (3) 1.825.239 2.031.383 11% 8.523.533 9.356.284 10%
International 290.683 259.343 -11% 2.398.457 2.411.257 1%
Domestic 1.534.556 1.772.040 15% 6.125.076 6.945.027 13%
Gazipaşa Airport 0 17.142 n.m. 14,083 84,253 498%
International 0 717 n.m. 9,434 81,251 761%
Domestic 0 16.425 n.m. 4,649 3,002 -35%
Medinah(5) 1.020.695 1.204.080 18% 3.547.508 4.588.158 29%
Tunisia 259.108 257.962 0% 2.289.131 3.321.244 45%
Georgia 246.514 282.702 15% 1.190.922 1.387.824 17%
Macedonia 171.032 192.376 12% 838.164 913.567 9%
TAV TOTAL (4) 13.783.661 17.607.645 28% 52.596.835 71.525.928 36%
International 7.201.827 9.503.908 32% 32.019.832 40.756.688 27%
Domestic 6.581.834 8.103.737 23% 20.577.003 30.769.240 50%
January-March FY
ATM(2) 2012 2013 Chg % 2011 2012 Chg %
Ataturk Airport 75.248 87.720 17% 301.518 348.698 16%
International 50.642 58.696 16% 197.580 231.596 17%
Domestic 24.606 29.024 18% 103.938 117.102 13%
Esenboga Airport (2) 17.563 19.352 10% 71.752 74.847 4%
International 2.595 2.878 11% 11.795 12.946 10%
Domestic 14.968 16.474 10% 59.957 61.901 3%
Izmir Airport (3) 13.331 14.414 8% 62.402 67.222 8%
International 2.153 1.869 -13% 17.494 17.124 -2%
Domestic 11.178 12.545 12% 44.908 50.098 12%
Gazipaşa Airport 0 91 n.m. 196 566 189%
International 0 4 n.m. 94 543 478%
Domestic 0 87 n.m. 102 23 -77%
Medinah(5) 6.947 9.461 36% 32.935 36.499 11%
Tunisia 2.989 3.148 5% 20.805 27.350 31%
Georgia 4.792 4.652 -3% 23.118 23.596 2%
Macedonia 2.475 2.555 3% 11.878 11.285 -5%
TAV TOTAL (4) 116.398 141.393 21% 446.565 573.309 28%
International 64.988 78.054 20% 278.934 331.051 19%
Domestic 51.410 63.339 23% 167.631 242.258 45%
+25% YTD
+28% YTD
Traffic Performance
Istanbul International Pax (m)
TAV Total Pax (m)
Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAH Notes: DHMİ figures for 2012 and 2013 are tentative. (1) Both departing and arriving passengers, including transfer pax (2) Commercial flights only
(3) TAV started to serve domestic passengers at Izmir Airport in January 2012 (4) 2011 totals do not include Medinah, Gazipaşa and Izmir domestic traffic data while 2012 totals do not include Medinah data for the first half of the year and Gazipaşa for the whole year (5) TAV started to serve Medinah passengers on July 1, 2012
Istanbul ATM Capacity vs Peers with Similar Runway Structure
9
Istanbul Atatürk Airport
Zurich Airport Vienna Airport
Istanbul Atatürk**: 58 ATM/hr
Zurich Airport: 68 ATM/hr
Vienna Airport : 72 ATM/hr
Declared Capacities*
*State Airports Authority (DHMI), Zurich Airport, Vienna Airport **Please note that runways, aprons and taxiways of Istanbul Ataturk Airport are operated by State Airports Authority (DHMI)
Ongoing Projects
10
IZMIR MEDINAH
Operations Right Izmir Airport International Terminal, CIP, Domestic Terminal and the auxiliary structures
Prince Mohammed Bin Abdulaziz Airport structures
Concession Expiry 2032 2037
TAV Stake 100% 33%
New Terminal
€250mn ~$1bn
Start: 2012 Operations started in June 2012
Total Area Increase: 28.500 sqm to 204.500 sqm
Total terminal capacity will Increase from 4mn to 8mn
Pax Fees €15 per international pax and €3 per domestic
SAR 80 from departing and arriving international pax.
Volume Guarantee
No volume guarantee, except for existing international terminal guarantee valid until January 2015
No volume guarantee
Concession/Lease
Total concession rent for entire operating period (until 2032) €610mn (excluding VAT)
Total concession rent for entire operating period (until 2037): 54.5% of total revenues
Lease payment schedule: • 2% paid in 4Q 2011 (€12m) • 3% paid in 1Q 2012 (€18mn) • first instalment paid on 2 January 2013 (€29mn) • afterwards annually on first business day of each year.
The concession charge reduced to 27.3 % for the first two years that follow the completion of the construction.
Izmir and Medinah Projects BTA Marine (IDO)
BTA was awarded the F&B operations of Istanbul Deniz Otobusleri AS (IDO, with c.50m pax) and formed a 50-50 JV with TASS (operator of IDO)
BTA Marine has gradually taken over the current F&B sales points since September 2011
BTA Marine will serve at 82 outlets in 21 Terminals, 17 Vehicle Ferries and 8 Fast Ferries, comprising;
50 BTA Marine owned and operated Sales Points 7 International Fast Food Restaurant (Mc Donald's) 22 International Coffee Shop Chain (Nero) 3 Other Tenants
Concession Overview
11
1) As of 31 March 2013 2) The concession fee is going to be 15% of the gross annual turnover until the number of passengers using the two airports reaches 1 million, and when the number of passengers exceeds 1 million, this percentage shall change between 4% and 2% depending on the number of passengers 3) SAR 80 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years 4) The concession charge will be reduced to 27.3 % for the first two years that follow the completion of the construction. 5) TAV Gazipaşa shall make a yearly rent payent of US$ 50,000 + VAT as a fixed amount, until the end of the operation period; as well as a share of 65% of the net profit to the DHMI. 6) Cash Basis
Airport Type/Expire TAV Stake Scope 2012
Pax(mppa) fee/pax
Int'l fee/pax
Dom. Volume
Guarantee
Lease/ Concession
Fee Net Debt (1)
Istanbul Ataturk Lease
100% Terminal 45.0 US$15
€3 No $140m/yr +
VAT €209m
(Jan. 2021) € 2.5 (Transfer)
Ankara Esenboga BOT
100% Terminal 9.2 €15 €3 0.6m Dom. ,
0.75m Int'l for 2007+%5 p.a
- €91m (May 2023)
Izmir A.Menderes BOT+Lease
100% Terminal 9.4 €15 €3 1.0m Int’l for
2006 + %3 p.a.
€29m starting from 2013 (6)
€57m
(Dec. 2032)
Gazipasa Lease
100% Airport - €5 TL4 No $50,000+VAT(5) €17m (May 2034)
Tbilisi BOT
76% Airport 1.2 US$22 US$6 No - €6m (Feb. 2027)
Batumi BOT
76% Airport 0.17 US$12 US$7 No - €(1)m (Aug. 2027)
Monastir&Enfidha BOT+Concession
67% Airport 3.3 €9 €1 No
11-26% of revenues from €355m
(May 2047) 2010 to 2047
Skopje & Ohrid BOT+Concession
100% Airport 0.9 €17.5 in
Skopje, €16.2 in Ohrid
- No 15% of the
gross annual turnover (2)
€60m (March 2030)
Medinah BTO+Concession
33% Airport 4.6 SAR 80 (3) - No 54.5%(4) €97m (2037)
47
55
1Q12 1Q13
211
252
1Q12 1Q13
Financial Overview
12
(in m€, unless stated otherwise) 1Q13 1Q12 Chg % 2011 2012 Chg %
Revenues* 252 211 19% 881 1,099 25%
EBITDA* 55 47 18% 257 332 29%
EBITDA* margin (%) 22,0% 22,2% -0,2 ppt 29.2% 30.2% 1.1 ppt
FX Gain (Loss)* 5 2 209% (5) 2 n.m.
Deferred Tax (Gain)* (4) (6) n.m. (4) (6) n.m.
Net Income 16 12 33% 53 124 135%
Net Cash Provided from Operating Activities 26 (68) n.m. 355 414 16%
Capex (56) (4) 1.163% (106) (131) 24%
Free Cash Flow (30) (72) n.m. 250 283 13%
Shareholders’ Equity 533 479 11% 475 504 6%
Net Debt* 1,038 907 15% 792 882 11%
Average number of employees 22,554 20,231 11% 19,838 22,227 12%
Number of passengers (m) 17.6 13.7 28% 52.8 71.5 36%
- International 9.5 7.1 33% 31.9 40.8 28%
- Domestic 8.1 6.6 23% 20.8 30.8 48%
Consolidated Revenue (€m) EBITDA (€m) Net Profit (€m)
19% 18%
• IFRS 11 and /or IFRIC 12 adjusted for 2013, IFRIC 12 adjusted for 2012
33%
12
16
1Q12 1Q13
Revenue, EBITDA and OPEX Breakdown
13
Consolidated Revenue (%) EBITDA (%) Opex (%)
33
24
22
6
16 32
25
20
7
16
Duty-free Aviation Ground-handling F&B Other
53
24
8
2
13 -1
53
26
8
3 6 3
Istanbul Other Airports ATU BTA HAVAŞ Other Services
3 9
9
11
15 19
34
3 9
8
11
15 17
36
Catering Services rendered D&A
Duty-free Other Concession rent
Personnel
2011
2012
33%
24%
19%
7%
16% 34%
25%
18%
7%
16%
Duty-free Aviation Ground-handling F&B Other
74%
19%
9% -1% 4% -4%
76%
18%
11%
4% -2% -6%
Istanbul Other Airports ATU
BTA HAVAŞ Other Services
3% 8%
10%
11%
14% 18%
37%
3% 8%
9%
11%
14%
18%
38%
Catering Services rendered D&A
Duty-free Other Concession rent
Personnel
1Q12
1Q13
• IFRS 11 and IFRIC 12 adjusted for 2013, IFRIC 12 adjusted for 2012
USD; 85%
EUR; 8%
Other; 6%
USD; 17%
EUR; 47%
TL; 33%
Other; 4% USD;
14%
EUR; 33%
TL; 45%
Other; 8%
€1044m
€79m
USD; 1%
EUR; 91%
TL; 1% Other;
7%
(1) Combined figures, pre-eliminations, IFRIC 12 adjusted (2) Includes concession rent expenses (€144m) and depreciation (€72m)
Revenues (1) Opex (1)(2)
Concession Rent Expense Gross Debt
€1311m €613m
€429m
€220m
€341m
€144m €1341m
€9m
€474m
€151m
€49m
€123m
€88m
€12m €20m
€17m
€1216m
FX Exposure of Operations (FY12)
14
Net Debt
15
Debt Schedule (€m, 1Q13) Debt Composition
Borrowing through long term project finance facilities
All project finance facilities are back-ended and well-aligned with the future cash flows of the SPV
Net Debt*(eop, €m) 1Q13 FY12 1Q12
Airports 891 640 738
Istanbul 209 45 186
Ankara 91 92 102
Izmir (including Ege) 57 (1) (2)
Gazipasa 17 17 18
Tunisia 355 351 362
Georgia 5 8 13
Macedonia 60 58 59
Medinah(33%) 97 70 0
Services 147 243 168
ATU (50%) 9 3 16
HAVAS 73 62 66
BTA (5) (2) (5)
Others 70 179 92
Total 1,038 882 907
(€m) ** 1Q13 FY12
On demand or within one year 239 212
In the second year 200 244
In the third year 148 126
In the fourth year 122 127
In the fifth year 126 125
After five years 391 400
Total 1,226 1,234
* IFRS 11 adjusted
**IFRS
71%
27%
2%
Turkey Saudi Arabia Other
16
Enfidha Macedonia
CAPEX*
Quarterly Capex (€m) Capex Composition (1Q13)
€m 80 Medinah
Izmir
-20
0
20
40
60
80
100
120
140
1Q
07
2Q
07
3Q
07
4Q
07
1Q
08
2Q
08
3Q
08
4Q
08
1Q
09
2Q
09
3Q
09
4Q
09
1Q
10
2Q
10
3Q
10
4Q
10
1Q
11
2Q
11
3Q
11
4Q
11
1Q
12
2Q
12
3Q
12
4Q
12
1Q
13
property and equipment airport operation right intangible assets
* IFRS 11 adjusted
1Q13 Comparative Financials*
17
1Q12 – 1Q13 EBITDA Bridge (€m)
1Q12 – 1Q13 Revenue Bridge (€m) Revenue (€m) 1Q13 1Q12 Chg.(%)
Airports 147.5 122.7 20% Istanbul 102.8 87.8 17% Ankara 11.9 10.2 17% Izmir (including TAV Ege) 10.1 9.3 8%
Gazipasa 0.1 0.0 220% Tunisia 4.6 5.2 -12% Georgia 6.9 6.3 10%
Macedonia 3.9 3.9 -2% Medinah 7.2 0.0 nm Services 152.5 129.6 18% ATU (50%) 61.3 50.5 21%
Havas 44.8 39.3 14% BTA 28.2 24.4 16% Others 18.2 15.4 18%
Total 300.0 252.3 19%
Elimination -47.7 -41.0 nm Consolidated 252.3 211.3 19%
EBITDA (€m) 1Q13 1Q12 Chg.(%)
Airports 52.3 43.2 21%
Istanbul 42.1 34.5 22%
Ankara 5.8 4.8 21%
Izmir (including TAV Ege) 2.2 2.3 -5%
Gazipasa -0.3 -0.2 18%
Tunisia -2.0 -0.9 nm
Georgia 3.1 2.9 6%
Macedonia 0.0 -0.1 nm
Medinah 1.4 0.0 nm
Services 3.3 3.6 -8%
ATU (50%) 6.2 4.3 45%
Havas -1.4 -0.7 nm
BTA 2.1 2.0 2%
Others -3.6 -2.1 74%
Total 55.6 46.8 19% Elimination -0.2 0.0 nm Consolidated 55.4 46.8 18%
46,8
7,6 1,4 1,9 1,0 0,2 0,2 0,0 0,0 0,1 0,2
-0,7 -1,1
-1,5
55,4
1Q
12
Istanb
ul
Med
inah
ATU
(50
%)
An
kara
Geo
rgia
Maced
on
ia
BTA
Gazip
asa
Izmir+Ege
Elimin
ation
Havas
Tun
isia
Oth
ers
1Q
13
21
1,3
25
2,3
15,1 10,8
7,2 5,5 3,8 2,8 1,8 0,8 0,6 0,1 -0,1 -0,6 -6,7
9M
11
Istanb
ul
ATU
(50
%)
Med
inah
Havas
BTA
Oth
ers
An
kara
Izmir+Ege
Geo
rgia
Gazip
asa
Maced
on
ia
Tun
isia
Elimin
ation
9M
12
1Q
12
1Q
13
• IFRS 11 and IFRIC 12 adjusted for 2013, IFRIC 12 adjusted for 2012
23
30
41 42 48
53
72
2006 2007 2008 2009 2010 2011 2012
8.146 9.473
11.289 12.194
17.535
19.838
22.227
2006 2007 2008 2009 2010 2011 2012
29
77
141 167
212
257
332
2006 2007 2008 2009 2010 2011 2012
402
508
627 640
785
881
1.099
2006 2007 2008 2009 2010 2011 2012
Exceptional Growth Sustained
18
Revenues (€m)
CAGR (2006-12) 50%
EBITDA (€m)
CAGR (2006-12) 21%
Passenger (m)
CAGR (2006-12) 18%
Average Number of Employees
CAGR (2006-12) 18%
Source: DHMI
Page
Overview 20
Operations 30
References 45
Appendix
19
Investment Highlights
20
Turkey is the fastest growing aviation market in Europe Passenger growth of 14% p.a. during 2002-2012 Projected passenger growth of 11% p.a. during 2009-2023(1)
Access to fast growing MENA region Istanbul is the most efficient hub for Europe, MENA Region(2)
Diversified, balanced portfolio with leading market positions #1 airport terminal operator in Turkey 12 airports operating in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia and Latvia (large
catchment areas)
Strong momentum with EBITDA posting 50% CAGR between 2006 and 2012 High earnings visibility given clear / agreed regulatory framework Proven track record of growth and profitability with attractive organic growth prospects High financial returns and cash flow generation given fixed cost base (operational leverage) and
minimal ongoing capex
Attractive market with strong growth prospects
Strong financial performance and cash
flow generation
Well-positioned to benefit from further organic and inorganic growth
(1) Source: Turkey’s Ministry of Transport (2) Determining Hub Efficiency in Europe, MIiddle East and North Afirca a comparative study, E. Nur Günay, Şükrü Nenem
Leading airport operator with diversified portfolio
“Platform play”
Worldwide traffic outlook up to 2030
21
Europe
2011–2030 2021–2030
4.1% 3.9%
Asia-Pacific
2011–2030 2021–2030
5.4% 5.1%
Latin America
2011–2030 2021–2030
5.9% 5.2%
North America
2011–2030 2021–2030
3.3% 3.3%
CIS
2011–2030 2021–2030
5.4% 4.8%
Middle East
2011–2030 2021–2030
7.3% 4.9%
Africa
2011–2030 2021–2030
5.1% 4.9%
World
2011–2030 2021–2030
4.7% 4.4%
Source: Airbus Global Markets Outlook (2011-2030)
Passenger traffic growth by airline domicile
The region where TAV operates is projected to experience the highest passenger traffic growth worldwide over the next 20 years.
110
162
202
240 259 250
270 299
332 349
370
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
9 9 10 17
23
30
41 42 48
53
72
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
9
9
14
21
31
32
36
41
51
58
65
25
25
31
36
34
38
44
44
53
59
65
34 34 45
57 65
70 79
86 103
118
130
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Domestic Int'l Total
Growth of the Turkish Aviation Market and TAV Airports
22 Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Ministry of Transport
CAGR (2002-12) 14%
Turkish Aviation Market (mPax) Number of Aircraft in Turkey
CAGR (2002-12) 13%
TAV Airports Passenger Traffic (mPax)
CAGR (2002-12) 23%
Deregulation of the domestic market in 2003
2nd largest country in Europe in terms of population:
75m (1)
In 2012, foreign visitors reached 32m (2)
Limited alternative transport infrastructure
Aircraft number in Turkey expected to reach 750 in 2023 (3)
Tourism
23
Countries 2012 2011 2010 2009
Germany 5,0 4.8 4.4 4.5
Russia 3,6 3.5 3.1 2.7
UK 2,5 2.6 2.7 2.4
Iran 1,2 1.9 1.9 1.4
Bulgaria 1,5 1.5 1.4 1.4
Georgia 1,4 1.2 1.1 1.0
Netherlands 1,3 1.2 1.1 1.1
France 1,0 1.1 0.9 0.9
Syria 0,7 1.0 0.9 0.5
U.S.A 0,8 0.8 0.6 0.7
Other 12,8 12.0 10.5 10.5
TOTAL 31,8 31.5 28.6 27.1
Source : Ministry of Culture and Tourism
Top Tourism Destinations (m tourists) Top visitors to Turkey (m tourists)
Turkey is the 6th most visited country in the world !!
Visitors to Turkey increased 10% in 2011.
Source : UNWTO
Countries 2000 2005 2006 2007 2008 2009 2010 2011
1-France 77.2 75 77.9 80.9 79.2 76.8 76.8 79.5
2-USA 51.2 49.2 51 56 57.9 55.0 59.7 62.3
3-China 31.2 46.8 49.9 54.7 53.0 50.9 55.7 57.6
4-Spain 46.4 55.9 58 58.7 57.2 52.2 52.7 56.7
5-Italy 41.2 36.5 41.1 43.7 42.7 43.2 43.6 46.1
6-Turkey 9.6 20.3 18.9 22.2 25.0 25.5 27.0 29.3
7-UK 23.2 28 30.7 30.9 30.1 28.2 28.1 29.2
8-Germany 19 21.5 23.6 24.4 24.9 24.2 26.9 28.4
9-Malaysia 10.2 16.4 17.5 21 22.1 23.6 24.6 24.7
10-Mexico 20.6 21.9 21.4 21.4 22.6 21.5 22.4 23.4
World 682 801 846 900 919 882 940 983
Strong Growing Presence in the Broader Region
24
Tbilisi Ankara
Izmir
Istanbul
Batumi
Ohrid
Skopje
Enfidha
Monastir
Ankara Tbilisi
Gazipaşa
Medinah
Source: DHMI
Asset overview / catchment area No.1 Airport operator in Turkey
2012 Passengers of 5 Largest Turkish Airports (mPax)
TAV operates in Turkey’s 3 largest cities
Since IPO TAV has expanded into the broader region, winning concessions and/or BOTs in Tunisia, Macedonia, Turkey (Gazipaşa), Georgia (Batumi) and most recently Saudi Arabia (Medinah)
TAV is the leading airport operator in the region (55% market share in Turkey) and its airports/terminals handling 72m passengers in 2012.
Latvia
45,0
25,0
14,5
9,2 9,4
AHL Antalya SAW Ankara Izmir
Integrated Unique Business Model
25
Integration
Operational Excellence Financial Excellence
Service Companies Airport Companies
High earnings visibility Pax fees regulated by authorities and set until end of concession Revenue guarantees in Ankara İzmir ATM’s drive airside and ground handling revenues.
Operating Leverage Predominantly fixed cost base
High Cash Flow Conversion
No hard assets, brand new portfolio
High profitability Service companies have lucrative margins. High potential to increase per pax spending & penetration
Streamlining
360 degree control facilitates best practice in performance. 360 degree data flow enables constant innovation.
Margin Conservation
All value added is preserved inside the group.
TAV vs Other Airport Operators
26
No state stake
No foreign ownership limit
Active state participation
Foreign ownership limits
Integrated business model with service companies active in every step of the value chain
Active mainly in airport/terminal management with some participation in airport services
Ownership of the operational rights of the airport portfolio over a predetermined period through BOTs and concessions
Mostly own the airport portfolio
If BOT, high upfront capex with minimal or no mandatory capex throughout the operation period
If lease, annual rent payment
Regular capital expenditure with bulk investments time-to-time
Business Model
Portfolio Ownership
Capital Expenditure
Counterparts TAV Airports
Shareholder Structure
Revenue sources
27
Aeronautical Charges Non-aeronautical Charges
Passenger Fee Ground Handling Landing Parking Fuel Duty Free F&B Car Park
Turkey
Istanbul X X X X X
Esenboga X X X X X
Izmir X X X X X
Gazipasa X X X X X X X X
Tunisia Enfidha X X X X X X X X
Monastir X X X X X X X X
Georgia Tbilisi X X X X X X X X
Batumi X X X X X X X X
Macedonia Skopje X X X X X X X X
Ohrid X X X X X X X X
Latvia Riga X X
Saudi Arabia Medinah X X X X X X X X
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
Earnings Visibility
28 Notes: Passenger service charges apply to departing passengers only (except Medinah)
Landside
Agreed passenger service charge of airports / terminals depending on project
Ankara and Izmir have revenue guarantees (fixed PSC and volume growth p.a.)
Check-in counter, bridge Passenger & ATM growth is the main driver.
Parking, Landing and lighting fees 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
Aeronautical Revenues Non-Aeronautical Revenues
32
27 25
20 18
14 14 14 13 13 10
9 7 6
5 4
0
5
10
15
20
25
30
35
Spai
n
Gre
ece
Slo
ven
ia
Cze
ch R
ep
.
Slo
vaki
a
Cro
atia
Hu
nga
ry
Po
lan
d
Ru
ssia
Latv
ia
Turk
ey
Ro
man
ia
Bu
lgar
ia
Serb
ia
Bo
snia
Ukr
ain
e
161%
120%
99% 86% 82% 82% 80%
68% 66%
39%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Gre
ece
Ital
y
Bel
giu
m
Fran
ce
UK
Ger
man
y
Hu
nga
ry
Spai
n
Net
her
lan
ds
Turk
ey
Turkey – Strong Economic Fundamentals
29
2nd largest country in Europe (>70m people) 6th largest economy in Europe; 16th largest economy in the world (by
GDP) Nominal GDP growth of 8.0% p.a. over the last six years, and recorded
8.5% real GDP growth in 2011, well ahead of EU 27 average of 1.6% Despite this, GDP per capita is still one of the lowest in Europe The Turkish economy has one of the lowest public debt levels in Europe Demographics support further market growth in the long term 64% of population between ages of 15-60, 28% between 0-14 and 8%
above 60 Passport ownership still in the low teens 3.9 million Turkish immigrants living in Europe offer a resilient traffic
flow
Strong historic GDP growth trajectory, but still significant upside potential in GDP per capita
Source: EIU.
483 531647
730615
734 772 828 895 959 1,0521,156
8.4% 6.9% 4.7%0.7%
(4.7%)
8.2% 8.5% 4.0%
5.0% 5.0% 4.3% 4.5%
(5%)
0%
5%
10%
15%
0
400
800
1,200
20
05
A
20
06
A
20
07
A
20
08
A
20
09
A
20
10
A
20
11
A
20
12
E
20
13
E
20
14
E
20
15
E
20
16
E
GDP Real GDP Growth
Source: IMF, Turkstat, Ministry of Development Note: 2012–2015E based on Ministry of Development and IMF forecasts.
(US$ in billions)
Source: IMF, Ministry of Development
Source: IMF
Comments Turkish GDP Growth
European Public Debt (2011 Gross Debt as % of GDP) GDP per Capita (‘000 USD)
CAGR (2011-16) 7%
CAGR (2005-11) 8%
Significant upside
potential
8,5
9,0
10
,2
11
,8
12
,2
13
,6
17
,1
18
,4
20
,3
23
,8
29
,7
2,9
3,1
5,4
7,5
9,1
9,6
11
,5
11
,4
11
,8
13
,6 1
5,3
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
int'l Domestic
Istanbul Atatürk Airport
30
Map of Istanbul
Istanbul Atatürk Airport – A Natural Hub
International ATM (%) Domestic ATM (%)
Istanbul Historical Pax (m)
CAGR (2006-12) 13%
Source: DHMI
Source: TAV Istanbul
2
72
2
24
Lufthansa THY Atlasjet Diğer
74
10
14 3
THY Atlasjet Onur Air Other
1,0 1,0 1,1 1,2 1,3 1,3 1,2 1,1 1,3 1,4 1,6
1,8 1,8 2,1 2,6 3,3 3,6
4,4 5,0
6,4 7,1
7,7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
int'l Domestic
Operations commenced in October 16, 2006.
Newest in the region
Secondary hub of Turkish Airlines (THY)
THY flying direct international flights
“2009 Best Airport Award” by ACI, in 5-10 million category
Ankara Esenboğa Airport
31
Passenger Traffic (mPax, 2006-2012) International ATM (%) Domestic ATM (%)
Source: DHMI
CAGR (2006-12)
13%
Source: TAV Ankara
37
14 18
31
THY Lufthansa Pegasus Other
76
14
10
THY Pegasus Other
1,5 1,6 1,7 1,7 2,1 2,4 2,4
3 3,6 3,8 4,5
5,4 6,1
6,9
2006 2007 2008 2009 2010 2011 2012
International Domesctic
Izmir Adnan Menderes Airport
32
Passenger Traffic (mPax, 2006-2012) Domestic ATM (%) International ATM (%)
Source: DHMI
Third largest city with the second biggest port in Turkey Major tourist destination Operations commenced in September, 2006. Diversified passenger base
CAGR (2006-12)
13%
Source: TAV Izmir
28
8
4
14 8
38
SunExpress Lufthansa Atlasjet
Pegasus Onur Air Other
31
25
21
9
8 6
Pegasus THY SXS
Atlasjet Anadolujet Other
6,4 7,8
10,2
12,9
10,8 11,6
14,3 16,0
17,3 18,5
20,2
22,3
-6
-4
-2
0
2
4
6
8
10
12
14
0
5
10
15
20
25
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
E
20
13
E
20
14
E
20
15
E
20
16
E
Nominal GDP Real GDP Growth (%)
(US$ in billions)
International tourist arrivals (millions), 2009 = 1.5m International tourism receipts (US$ millions), 2009 = 470m
Source: IMF.
Source: World Economic Forum Report. Source: IMF.
0
200
400
600
800
1.000
1.200
1.400
1.600
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
0-14 years old
15-64 years old
65 years old or more
Comments Georgia GDP growth
Population mix Travel and Tourism indicators
Country Overview: Georgia
Population: 4.4m (1.5m in Tbilisi – the capital) Located on the east of Black Sea, Georgia controls most of the
trade routes through Caucasus Mountains Constructions of several oil and gas pipelines have proved the
strategic location of Georgia One of the fastest growing economies among Former Soviet
Union until the dispute with Russia on Abkhazia and South Ossetia
Presidential-democratic form of government Strong tourism potential (rich history, culture, climate), wide
catchment area
33
CAGR (2005-11) 14.3%
CAGR (2011-16) 9.3%
0,6 0,6
0,8 0,8 0,9
1,2
1,4
2006 2007 2008 2009 2010 2011 2012
Georgian Airports
34
Passenger Traffic (mPax,2006-2012)
Batumi Airport Tbilisi Airport
Tbilisi Airport
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 the Best Emerging Airport – Russia, CIS and Baltic States Batumi Airport Operations in the terminal commenced in May 26, 2007.
Second biggest city of Georgia with strategic importance
Source: TAV Georgia
CAGR (2006-12) 16%
–
2.0%
4.0%
6.0%
8.0%
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Tunisia Northern Africa Africa
International tourist arrivals (millions), 2009 = 6.9m International tourism receipts (US$ billions), 2009 = 2.8bn
Source: IMF.
Source: IMF, African Economic Outlook.org
Source: World Economic Forum Report.
Population: 10.5m
Privatisation policies of the government have pushed the economy forward over the past decade
Fairly well developed infrastructure (in particular for air and rail transport – 37th place in the World Economic Forum Competitiveness Rankings)
Increasingly popular as a holiday destination, with 90% of travellers visiting Tunisia preferring air transportation
December 2010 marked the beginning of the Jasmine revolution, a series of protests and social unrest sparked by the self-immolation of 26-year-old Mohamed Bouazizi
The wave of demonstrations subsequently led to the ousting of President Zine El Abidine Ben Ali and put an end to his 23-year rule
0-14 years old
15-64 years old
65 years old or more
–
50
100
150
200
250
300
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
International tourist arrivals (thousands)
International toursim receipts (US$ millions)
Comments Tunisia Real GDP growth
Population mix Travel and Tourism indicators
Country overview: Tunisia
35
22
17
14 10
5
32
NOUVELAIR THOMAS COOK UK TUNIS AIR
THOMSON FLY JET AIR FLY Other
4,2 4,2 4,2 3,8 3,9
2,3
3,3
2006 2007 2008 2009 2010 2011 2012
Tunisian Airports
36
Tunisian passenger Traffic (mPax) Air Traffic Movements by Airline
Enfidha Airport TAV started to operate in December, 2009. The Enfidha International Airport, is located 65 kilometers from the Monastir International Airport and has the potential to become one of the major air travel hubs in Africa and is a crucial facility for Tunisia’s tourism industry due to its proximity to major tourist destinations. TAV Tunisie reached agreements with many prominent airlines and tourism agencies of the region to increase the traffic at Enfidha.
Monastir Airport
TAV started to operate in January 1, 2008. Tunisia has potential to be the primary hub of Africa in near future. 90% of travelers visiting Tunisia prefer air transportation. Selected the Best Emerging Airport in Africa, surpassing all other African airports.
Enfidha Airport Monastir Airport
Source: TAV Tunisia
Arab Spring Financial Crisis
6,0 6,6
8,2
9,9 9,3 9,2
10,3 10,1 10,7
11,3 11,9
12,6
-2,0
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
E
20
13
E
20
14
E
20
15
E
20
16
E
Nominal GDP Real GDP Growth (%)
(US$ in billions)
International tourist arrivals (thousands), 2009 = 259k International tourism receipts (US$ millions), 2009 = 218m
Source: World Economic Forum Report. Source: IMF
Source: IMF.
0-14 years old
15-64 years old
65 years old or more
–
50
100
150
200
250
300
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
International tourist arrivals (thousands)
International toursim receipts (US$ millions)
Comments Macedonia Real GDP growth
Population mix Travel and Tourism indicators
Country Overview: Macedonia
Population: 2.1m – Skopje (capital) has over 500,000 inhabitants Skopje has deep historical connections with Turkey and still harbours
large population of Turks and Albanians Important crossroads of trade in Balkan region Adoption of visa liberalization for Macedonia in December 2009 has
freed the traffic between Macedonia and EU member states comprising 500 million citizens
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
37
CAGR (2005-11) 9.5%
CAGR (2011-16) 4.1%
Macedonian Airports
38
Skopje Airport Ohrid Airport
Macedonian Passenger Traffic (mPax) Skopje and Ohrid
Skopje and Ohrid Airports TAV Airports was awarded the tender on September 2, 2008
TAV started to operate Skopje and Ohrid Airports in March 2010
The European Parliament’s adoption of the visa liberalization for Macedonia on December 19, 2009 has freed traveling between Macedonia and 25 out of 27 EU member states with 500 million citizens.
Source: TAV Macedonia
0,64
0,73
0,84 0,91
2009 2010 2011 2012
Country Overview: Saudi Arabia
(US$ in billions)
International tourist arrivals (millions), 2010 = 12
International tourism receipts (US$ billions), 2010 = 7
Source: IMF
Source: Euromonitor, World Economic Forum Report.
Note: International tourism receipts figures not available before 2005. Source: Euromonitor
–
5.000
10.000
15.000
20.000
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
International tourist arrivals (thousands) Incoming toursim receipts (US$ billions)
0-14 years old
15-64 years old
65+ years old
Saudi Arabia Real GDP growth
Population mix Travel and Tourism indicators
Comments
Population: 27.1m
Occupies 80% of the Arabian peninsula
Saudi Arabia sits on more than 25% of the world’s known oil reserves, with a production capacity of 10 million barrels per day
Petroleum sector accounts for 55% of total GDP
Part of the WTO and OPEC, where it plays a leading role
Saudi Arabia has been ruled since its foundation by the Al Saud dynasty
Saudi Arabia is home to the two holiest sites of Islam (Mecca and Medinah)
39
316 357
385
477
377
451
578
652 667 683 703 730
0
1
2
3
4
5
6
7
8
0
100
200
300
400
500
600
700
800
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
E
20
13
E
20
14
E
20
15
E
20
16
E
Nominal GDP Real GDP Growth (%)
0,7 1,1
1,9
2,5
3,2 3,7
4,1
4,7 5,1
4,8
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
2,3
3,1 3,4
3,8
3,3 3,6
4,6
2006 2007 2008 2009 2010 2011 2012
Saudia Arabian and Latvian Airports
40
Medinah Pax (m)
Medinah – Jeddah (450 km)
Riga Pax (m)
Source: GACA
TAV Airports is in a JV with Al Rajhi and Oger groups (all 33%) for the improvement and management of the Medinah Airport.
TAV Airports operates only the commercial areas in Riga Airport, Latvia.
Terminal Renovation
CAGR (2003-12) 24%
Source: JSC Riga International Airport
ATÜ
41
ATÜ Revenues (m€) Duty Free Spend per Pax (€)
ATÜ is Turkey’s leading duty free operator chain, established as a joint venture between TAV and Unifree (Heinemann). ATÜ is the sole duty free operator of the Istanbul, Izmir, Ankara airports 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 ATÜ, has access to a considerable operational know-how, purchasing power and an effective logistics network. Competitive concession fee paid to TAV for ATÜ operated shops in Ataturk Airport ATÜ also pursues tenders outside TAV operations and has been operating in Riga (Latvia)
Source: ATÜ Source: DHMI, ATÜ
29 33 41 50 61 38 42 53
65 41 47 57
72 37
47 56
68
2009 2010 2011 2012 2013
Q1 Q2 Q3 Q4 16,0
17,1 15,7 16,3 16,6 16,5
17,5 17,3
14,8 15,8
14,7 14,5 14,9 15,1 15,4 16,0
2007 2008 2009 2010 2011 2012 1Q12 1Q13
Istanbul TAV
35
50 58 59
75 81
115
2006 2007 2008 2009 2010 2011 2012
BTA
42
Spend per Pax (€)
BTA Revenues (m€)
BTA Catering was established in 1999 as a partnership between Bilintur, Tepe and Akfen in order to handle the food & beverage operation of the Istanbul Atatürk Airport's International Terminal.
BTA is the food and beverage operator at Istanbul Ataturk, Ankara, Izmir, Tbilisi and Batumi, Monastir, Enfidha, Skopje and Ohrid
BTA, through its subsidiary, Cakes&Bakes produces pastry products for reputable international food chains
BTA, through its subsidiary, BTA Marine (IDO) provides food and beverage services at IDO (Istanbul Sea Ferry) sales points
CAGR (2006-12)
22%
1,8
2,1 2
1,6
1,3 1,5
2007 2008 2009 2010 2011 2012
116
161
31
308
117
203
43
363
HAVAŞ TGS HVŞ E HAVAŞ + TGS + HVŞ E
FY11
FY12
Havaş, TGS, Havaş Europe
43
Operations Map – Havaş, TGS
15%
29%
21%
1%
2009 2010 2011 2012
Revenues 126 163 197 211
EBITDA 24 26 34 21
EBITDA Margin 19% 16% 17% 10%
Aircraft Handled ('000) 182.785 269.244 308.100 363.352
Aircraft Handled (‘000) 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 same name.
Operating at 24 airports in Turkey
Havaş has been chosen by THY as partner in the TGS Ground Handling Services Inc. which commenced its operations in January 2010
Havaş can be divided in five operational units
Passengers services
Aircraft services
Cargo / Postal services
Flight operation, freight control and communication services
Representation services
Exceptional service coverage throughout Turkey
TGS, operates at a total of six airports in Turkey and provides ramp, operation, cargo and passenger services
Expansion into northern Europe through its 67% stake in Havaş Europe
Riga – January 2010
Germany - Frankfurt, Munich, Berlin, Dusseldorf, Hamburg and Stuttgart – 2012
Other Services
44
Revenue Breakdown
Revenues (m€)
TAV O&M (100%), incorporated in 2004
Commercial area allocations, maintenance and Lounges
TAV IT (99%), become a separate entity in 2005
Airport IT services, software and hardware sales
TAV Security (100%), became a separate entity in 2006
Security service provider in Istanbul, Ankara, Izmir and Gazipaşa
TAV Latvia (100%) incorporated in 2010
TAV Airports commenced the management of all Commercial Areas in January 2011 including DutyFree, Food&Beverage and other Retail areas for 10 years
39
50 55
66 61
66
92
2006 2007 2008 2009 2010 2011 2012
31%
19% 10%
30%
11% TAV O&M
TAV IT
TAV Security
Holding
TAV Latvia
Tax Regimes
45
Corporate income tax rate of 20%
Advance tax returns are filed on a quarterly basis.
Losses can be carried forward for offsetting against future taxable income for up to 5 years
Losses cannot be carried back
Corporate income tax rate of 15%
Corporate income tax rate of 30%
TAV Tunisia is exempt from corporate tax for a period of 5 years starting from the concession
agreement date
Corporate income tax of 10%
Corporate income tax rate of 15%
Turkey
Georgia
Tunisia
Macedonia
Latvia
IFRS P&L
46
IFRS Income Statement (mEUR) 1Q13 1Q12*
Construction revenue 52 0
Total operating income 179 158
Sales of duty free goods 0 1
Aviation income 51 45
Ground handling income 23 23
Commission from sales of duty free goods 50 41
Catering services income 17 14
Other operating income 38 33
Construction expenditure (52) (0)
Operating expenses (156) (140)
Cost of catering inventory sold (6) (5)
Cost of duty free inventory sold 0 0
Cost of services rendered (11) (11)
Personnel expenses (62) (51)
Concession rent expenses (35) (33)
Depreciation and amortization expense (17) (16)
Other operating expenses (26) (23)
Share of profit of equity-accounted investees, net of tax 6 5
Operating profit 29 23
Finance income 11 8
Finance expenses (22) (23)
Profit before income tax 18 7
Income tax expense (5) 2
Profit for the period from continuing operations
Attributable to:
Owners of the Company 16 12
Non-controlling interest (3) (3)
Profit for the year 13 9
* Restated
IFRS Balance Sheet
47
€ million 1Q13 1Q12*
ASSETS
Property and equipment 157 150 Intangible assets 22 25 Airport operation rights 808 755 Other investments 0 0 Goodwill 136 136 Prepaid concession expenses 160 172 Trade receivables 72 90 Other non-current assets 0 1 Deferred tax assets 100 90 Equity Accounted Investees 69 65 Total non-current assets 1,523 1,484
Inventories 7 6 Prepaid concession expenses 138 95 Trade receivables 80 71 Due from related parties 36 32 Derivative financial instruments 4 0 Other receivables and current assets 31 66 Cash and cash equivalents 134 71 Restricted bank balances 160 213 Total current assets 590 555
TOTAL ASSETS 2,113 2,039
€ million 1Q13 1Q12*
EQUITY
Share capital 162 162 Share premium 220 220 Legal reserves 73 38 Other reserves (18) 8 Revaluation surplus 1 2 Purchase of shares of entities under common control 40 40 Cash flow hedge reserve (83) (76) Translation reserves (2) (1) Retained earnings 140 87 Total equity attributable to equity holders of the Company 534 480 Non-controlling interest 31 84 Total Equity 565 564
LIABILITIES
Loans and borrowings 989 993 Reserve for employee severance indemnity 15 10 Due to related parties 11 12 Deferred income 29 33 Other payables 9 15 Deferred tax liabilities 2 3 Trade payables (0) 0 Total non-current liabilities 1,056 1,066
Bank overdraft 0 0 Loans and borrowings 240 193 Trade payables 32 21 Due to related parties 4 13 Derivative financial instruments 152 135 Current tax liabilities 9 3 Other payables 36 28 Provisions 7 5 Deferred income 13 11 Total current liabilities 492 409 TOTAL LIABILITIES 1,548 1,475
TOTAL EQUITY AND LIABILITIES 2,113 2,039
* Restated
IFRS Cash Flow Statement
48
1Q13 1Q12* CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the period 13 9 Adjustments for:
Amortisation of airport operation right 10 10 Depreciation of property and equipment 6 5 Amortisation of intangible assets 1 1 Concession and rent expenses 35 33 Provision for employment termination benefits 0 1 Provision for doubtful receivables 0 0 Other provisions released 0 0 Discount on receivables and payables, net (0) 0 Gain on sale of property and equipment (0) (0) Provision for unused vacation (0) 0 Provision for slow moving inventory 0 0 Interest income (3) (4) Interest expense on financial liabilities 20 22 Tax expense/(benefit) 5 (2) Unwinding of discount on concession receivable (3) (3)
Share of profit of equity-accounted investees, net of tax (6) (5) Unrealised foreign exchange differences on statement of financial position items 4 2
Cash flows from operating activities 81 69 Change in trade receivables 1 (3) Change in non-current trade receivables 8 7 Change in inventories (0) (0) Change in due from related parties 16 (21) Change in restricted bank balances 98 53 Change in other receivables and current assets (7) (23) Change in trade payables (6) (9) Change in due to related parties (10) (7) Change in other payables and provisions 7 5 Change in other long term assets (0) (1) Additions to prepaid rent expenses (136) (107)
Cash provided from / (used in) operations 51 (37) Income taxes paid (8) (11) Interest paid (16) (19) Retirement benefits paid (1) (0)
Net cash provided from / (used in) operating activities 26 (68)
1Q13 1Q12* CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3 4 Proceeds from sale of property, equipment and intangible assets 0 1 Acquisition of property and equipment (4) (4) Additions to airport operation right (52) (0) Acquisition of intangible assets (1) (0) Acquisition of non-controlling interest 17 13
Net cash provided from / (used in) investing activities (36) 14 CASH FLOWS FROM FINANCING ACTIVITIES
New borrowings raised 38 62 Repayment of borrowings (57) (78) Change in restricted bank balances 124 86 Non-controlling interest change 1 (0) Dividends paid 0 Change in finance lease liabilities (1) (0)
Net cash (used in) / provided from financing activities 105 69
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 95 15 CASH AND CASH EQUIVALENTS AT 1 JANUARY 38 56 CASH AND CASH EQUIVALENTS AT 31 MARCH 134 71
* Restated
Notes on Financials
FX Rates Basis of Consolidation
Hedging
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’ functional currency and reporting currency is EUR.
Each entity is consolidated as follows:
Subsidiaries, TAV İstanbul, TAV Esenboğa, HAVAŞ, TAV
Macedonia, TAV Tunisia, Tibah Development and TAV Ege 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%, 85%, 100%, 100%, 50%, 100% and 100% of floating bank loans for TAV Esenboğa, TAV Tunisia, TAV İstanbul, TAV Ege, Havaş, TAV Macedonia respectively are fixed with financial derivatives.
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognized directly in equity to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are recognized in profit or loss.
Summary IFRS Consolidation Table
1Q13 1Q12
Name of Subsidiary Consolidation % Stake Consolidation % Stake
TAV İstanbul Full - No Minority 100 Full - No Minority 100
TAV Esenboğa Full - No Minority 100 Full - No Minority 100
TAV Izmir Full - No Minority 100 Full - No Minority 100
TAV Ege Full - No Minority 100 Full - No Minority 100
TAV Gazipaşa 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 - With Minority 67
TAV Urban Georgia (Tbilisi) Full - With Minority 76 Full - With Minority 76
TAV Batumi Full - With Minority 76 Full - With Minority 76
TIBAH Development Equity 33 - -
TIBAH Operation Equity 51 - -
HAVAŞ Full - No Minority 100 Full - With Minority 65
BTA Full - With Minority 67 Full - With Minority 67
TAV O&M Full - No Minority 100 Full - No Minority 100
TAV IT Full - With Minority 99 Full - With Minority 99
TAV Security Full - No Minority 100 Full - No Minority 100
HAVAS Europe (NHS) Full - With Minority 67 Full - With Minority 67
ATÜ Equity 50 Proportionate 50
TGS Equity 50 Proportionate 50
BTA Denizyollari (IDO) Equity 50 Proportionate 50
Average Rate 31 March 31 Dec 31 Mar
1Q13 1Q12 2013 2012 2012
EUR/TRL 2.35 2.35 2.32 2.35 2.32
USD/TRL 1.78 1.79 1.81 1.78 1.75
EUR/USD 1.32 1.31 1.28 1.32 1.32
EUR/GEL 2.19 2.18 2.12 2.18 2.21
EUR/MKD 61.58 61.50 61.73 61.35 61.35
EUR/TND 2.07 1.98 2.05 2.05 2.05
EUR/SEK 8.50 8.86 8.34 8.61 8.61
EUR/SAR 4.95 5.27 4.81 4.95 4.95
49
Adjusted Financials - IFRS 11
Effects of IFRS 11
According to the IFRS 11 standard, joint ventures cannot be consolidated “proportionately” starting with 2013 first set of financials. These types of entities have to be consolidated using the “equity-pick-up” method.
In the case of TAV Airports, this standard implies that previously “proportionately” consolidated entities such as ATÜ, TGS, TIBAH Development (Medinah) and BTA Marine (IDO) have to be consolidated using the “equity-pick- up” method.
In the IFRS report, these entities have been consolidated in accordance with the IFRS 11 standard, recording the “net income/(loss)” contributions of these entities as a source of operating revenue.
50
However, to enable the capital markets participants a
smooth transition process into the new standard, TAV Airports will provide a summary of consolidated P&L items adjusted to reverse the effects of IFRS 11 for 2013.
Financials Adjusted for IFRS 11
Guaranteed Pax Structure 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
An
kara
International Departing Pax (m) 0.16 0.75 0.79 0.83 0.87 0.91 0.96 1.01 1.06 1.11 1.16 1.22 1.28 1.35 1.41 1.49 1.56 0.64
Guaranteed Pax Income (€m) 2.3 11.3 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) 0.13 0.60 0.63 0.66 0.70 0.73 0.77 0.80 0.84 0.89 0.93 0.98 1.03 1.08 1.13 1.19 1.25 0.51
Guaranteed Pax Income (€m) 0.4 1.8 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
İzm
ir
International Departing Pax (m) 0.25 1.03 1.06 1.09 1.13 1.16 1.19 1.23 1.27 0.03
Guaranteed Pax Income (€m) 3.7 15.5 15.9 16.4 16.9 17.4 17.9 18.4 19.0 0.5
IFRIC 12 & Our Adjusted Financials Policy
Debit Credit
1. During Construction
BS Debt
BS Cash
BS Construction in progress
PL Construction Expense Construction Income
2. Completion of Construction
BS Construction in progress
BS (NPV of) Passenger Revenue Receivable (Trade Receivables)
BS Airport Operation Right *
3. Operations During Year
PL Aviation Income for the Current Year **
BS Cash **
4. Year Close
PL Aviation Income for the Current Year ***
PL
Finance Income (Difference between discounted receivables and the actual receivables)
BS Passenger Revenue Receivable****
PL Amortisation of Airport Operation Right
BS Accumulated Amortisation of Airport Operation Right
* AOR = Construction in progress- (NPV of ) Passenger Revenue Receivable
** TR-GAAP
***IFRS (IFRIC 12 application)
****Discounted guaranteed passenger revenues for that period
Introduction to IFRIC 12 IFRIC 12 booking model
IFRIC 12- is an accounting application treating BOT assets with special provisions for guaranteed income. Ankara Esenboga Airport and Izmir Adnan Menderes Airport International Terminal, with their guaranteed passenger fee structures, fall under the scope.
The capex we incur on our BOT assets, is routinely booked as “airport operation right” in the balance sheet. However when there are guaranteed passenger fees in question, these fees are discounted to their NPV and subtracted from the “airport operation right” of the BOT in question. The remaining capex amount gets booked as “airport operation right” and the NPV of guaranteed passenger fees gets booked as “trade receivables.”
When the guaranteed passenger fees become earned during the course of operations, these are credited from the balance sheet and the difference between discounted (NPV of) guaranteed passenger fees and the actual fees as they are earned are booked as finance income.
Due to the application of IFRIC 12, guaranteed passenger fees stop being P&L items and get treated as Balance Sheet/Cash Flow items, while at the same time, part of these fees gets shown as finance income. This unduely decreases aviation income and increases finance income and distorts our P&L. To adjust for the distortion we add back guaranteed passenger fees while reporting our adjusted revenues.
On the other hand the capex incurred during the construction phase is immediately transferred to P&L with an offsetting construction income assigned to it. This income may or may not carry a mark-up on it. Since this method of booking also distorts both the P&L and the Balance Sheet we adjust our financials to disregard the effects of both “construction expense” and “construction income.”
51
Board of Directors and Management Team
52
Board Member Position
Hamdi Akın Chairman
Augustin de Romanet Deputy Chairman
Mustafa Sani Şener Board Member
Pierre Graff Board Member
Laurent Galzy Board Member
Ali Haydar Kurtdarcan Board Member
Abdullah Atalar Board Member
Tayfun Bayazıt Independent Board Member
Necmi Bozantı Independent Board Member
Jerome Calvet Independent Board Member
Sevdil Yıldırım Independent Board Member
Management Team
Dr. Sani Şener Chief Executive Officer (CEO)
David Olivier Tarac Deputy CEO
Burcu Geriş Chief Financial Officer (CFO)
Senior Management
Altug Koraltan Internal Audit Director
Bengi Vargul Corporate Communications Director
Ceyda Akbal Legal Counsel
Deniz Aydın Financial Affairs Director
Ersagun Yücel General Secretary
Haluk Bilgi North Africa Director
Mehmet Erdoğan External Affairs Director
Murat Örnekol Operations Director
Nursel Ilgen Investor Relations Director
Serkan Kaptan Business Development Director
Waleed Youssef GCC Director and ACI Representative
Yiğit Oğuz Duman Human Resources Director
Airport GMs
Kemal Ünlü GM, TAV Istanbul
Erkan Balcı GM, TAV Izmir
Nuray Demirer GM,TAV Esenboga
Metin Kibar GM Deputy, TAV Tunisie
Mete Erkal GM, TAV Georgia
Zoran Krstevski GM, TAV Macedonia
Sofiene Abdessalem GM, Medinah Airport
Service Co. GMs
Ersan Arcan GM, ATU
Sadettin Cesur GM, BTA
Müjdat Yücel GM, HAVAS
Turgay Şahan GM, TAV Security
Binnur Onaran GM, TAV IT
Eda Bildiricioğlu GM, TAV O&M
Share Performance (April 29, 2013)
53
Share Price Performance
Closing Price Market Cap Av. Daily Volume Foreign Ownership Free Float Effective Free Float
12,95 USD 2,6b USD 5,5m 84% 44% 40%
Share Price Performance
1M 3M YTD
TL 4% 24% 42%
USD 4% 22% 41%
Relative to ISE -100 5% 20% 30% 0,6
0,7
0,8
0,9
1,0
3,5
4,0
4,5
5,0
5,5
6,0
6,5
7,0
7,5
29
-04
-13
1
2-0
4-1
3
29
-03
-13
1
5-0
3-1
3
01
-03
-13
1
5-0
2-1
3
01
-02
-13
1
8-0
1-1
3
04
-01
-13
2
0-1
2-1
2
06
-12
-12
2
2-1
1-1
2
08
-11
-12
2
2-1
0-1
2
08
-10
-12
2
4-0
9-1
2
10
-09
-12
2
4-0
8-1
2
08
-08
-12
2
5-0
7-1
2
11
-07
-12
2
7-0
6-1
2
13
-06
-12
3
0-0
5-1
2
16
-05
-12
0
2-0
5-1
2
16
-04
-12
0
2-0
4-1
2
19
-03
-12
0
5-0
3-1
2
20
-02
-12
0
6-0
2-1
2
23
-01
-12
0
9-0
1-1
2
Price ($) Relatif
TAVHL ($) Relative to ISE-100
Corporate Governance Rating
54
Sub-categories Weight Grade
Shareholders 0.25 90.98
Public Disclosure and Transparency 0.35 96.26
Stakeholders 0.15 94.53
Board of Directors 0.25 87.29
Total 1.00 92.40
Highest corporate governance rating in Turkey !!
The “Corporate Governance Rating Report” for TAV Airpors was prepared by RiskMetrics Group - Institutional Shareholder Services (ISS), a global corporate governance rating company with official authorization to assign corporate governance ratings in accordance with the Capital Markets Board (CMB) Corporate Governance Principles in Turkey.
TAV Airports is rated at 92.40 (9.24) in total average in its Corporate Governance Rating Report.
Final rating grades are determined by the separate weighting of four sub-categories within the framework of the related resolution of CMB.
The breakdown of corporate governance rating grades is stated below.
Macro Outlook
55
2010 2011 2012 2013 2014 2015 2016 2017 Estimates Start After CAGR 2012-2017
Georgia
Real GDP Growth (%) 6,3 7,0 6,5 5,5 5,5 5,5 5,5 5,5 2010 nm
GDP, current prices (US $, billion) 11,6 14,3 15,8 17,3 18,3 19,8 21,9 24,3 2010 7,4%
GDP per capita, current prices (US $) 2.623 3.210 3.514 3.824 4.042 4.370 4.853 5.404 2009 7,4%
GDP based on PPP per capita (US $) 5.064 5.491 5.908 6.283 6.707 7.192 7.748 8.388 2009 6,0%
Inflation, average consumer prices 7,1 8,5 0,2 5,5 6,0 6,0 6,0 6,0 2010 nm
Population (million) 4,4 4,5 4,5 4,5 4,5 4,5 4,5 4,5 2009 0,0%
Latvia
Real GDP Growth (%) -0,3 5,5 4,5 3,5 4,2 4,2 4,0 4,0 2011 nm
GDP, current prices (US $, billion) 24,0 28,3 27,2 28,1 29,8 31,6 33,4 35,4 2011 4,5%
GDP per capita, current prices (US $) 10.681 13.618 13.316 13.808 14.695 15.611 16.578 17.615 2010 4,8%
GDP based on PPP per capita (US $) 14.407 16.818 18.140 19.075 20.213 21.466 22.812 24.305 2010 5,0%
Inflation, average consumer prices -1,2 4,2 2,4 2,2 2,2 2,2 2,2 2,2 2011 nm
Population (million) 2,2 2,1 2,0 2,0 2,0 2,0 2,0 2,0 2010 -0,3%
Macedonia
Real GDP Growth (%) 2,9 3,1 1,0 2,0 3,5 4,2 4,0 4,0 2011 nm
GDP, current prices (US $, billion) 9,4 10,6 10,2 10,7 11,3 12,1 12,9 13,6 2011 5,0%
GDP per capita, current prices (US $) 4.552 5.162 4.935 5.147 5.439 5.815 6.168 6.530 2010 4,8%
GDP based on PPP per capita (US $) 9.964 10.469 10.718 11.048 11.577 12.238 12.940 13.715 2010 4,2%
Inflation, average consumer prices 1,5 3,9 2,0 2,0 2,0 2,0 2,0 2,0 2011 nm
Population (million) 2,1 2,1 2,1 2,1 2,1 2,1 2,1 2,1 2010 0,2%
Saudi Arabia
Real GDP Growth (%) 5,1 7,1 6,0 4,2 3,8 4,3 4,3 4,2 2011 nm
GDP, current prices (US $, billion) 455,9 597,1 657,0 682,6 697,5 722,2 750,0 778,8 2011 2,9%
GDP per capita, current prices (US $) 16.541 21.196 22.823 23.199 23.218 23.569 23.997 24.428 2010 1,1%
GDP based on PPP per capita (US $) 22.818 24.411 25.722 26.564 27.399 28.478 29.654 30.923 2010 3,1%
Inflation, average consumer prices 5,4 5,0 4,9 4,6 4,0 4,0 4,0 4,0 2011 nm
Population (million) 27,6 28,2 28,8 29,4 30,0 30,6 31,3 31,9 2010 1,7%
Tunisia
Real GDP Growth (%) 3,1 -1,8 2,7 3,3 4,1 5,3 5,5 6,0 2010 nm
GDP, current prices (US $, billion) 44,3 46,0 44,7 45,6 47,0 49,2 51,7 54,8 2010 3,5%
GDP per capita, current prices (US $) 4.199 4.317 4.152 4.187 4.279 4.429 4.602 4.835 2010 2,6%
GDP based on PPP per capita (US $) 9.460 9.389 9.698 10.048 10.496 11.118 11.825 12.665 2010 4,5%
Inflation, average consumer prices 4,4 3,5 5,0 4,0 3,5 3,5 3,5 3,5 2011 nm
Population (million) 10,5 10,7 10,8 10,9 11,0 11,1 11,2 11,3 2010 0,9%
Turkey
Real GDP Growth (%) 9,2 8,5 3,0 3,5 4,0 4,3 4,4 4,4 2010 nm
GDP, current prices (US $, billion) 731,3 774,3 783,1 839,0 900,4 980,6 1.072,2 1.170,1 2010 6,9%
GDP per capita, current prices (US $) 10.017 10.363 10.457 11.067 11.738 12.636 13.662 14.748 2010 5,9%
GDP based on PPP per capita (US $) 13.294 14.393 15.029 15.574 16.237 17.010 17.890 18.870 2010 3,9%
Inflation, average consumer prices 8,6 6,5 8,7 6,5 5,3 5,0 5,0 5,0 2011 nm
Population (million) 73,0 74,7 74,9 75,8 76,7 77,6 78,5 79,3 2011 1,0%
International Monetary Fund, World Economic Outlook Database, October 2012
Contact IR
56
Besim MERİÇ Investor Relations Assistant Manager [email protected] Tel :+90 212 463 3000 / 2123 Fax : +90 212 465 3100
Nursel İLGEN, CFA Head of Investor Relations [email protected] Tel :+90 212 463 3000 / 2122 Fax : +90 212 465 3100
Ali Özgü CANERİ Investor Relations Assistant Manager [email protected] Tel :+90 212 463 3000 / 2124 Fax : +90 212 465 3100
IR Website ir.tav.aero
e-mail [email protected]
Phone +90-212-463 3000 (x2122 – 2123 – 2124 - 2125)
Twitter twitter.com/irTAV
Facebook facebook.com/irTAV
Address TAV Airports Holding Co.
Istanbul Ataturk Airport International Terminal (Besides Gate A and VIP)
34149 Yesilkoy, Istanbul
IR Team About TAV Airports
TAV Airports, the leading airport operator in Turkey, operates 12 airports: Turkey
Istanbul Atatürk, Ankara Esenboga, Izmir Adnan Menderes Antalya Gazipasa
Georgia Tbilisi and Batumi
Tunisia Monastir and Enfidha
Macedonia Skopje and Ohrid
Saudi Arabia Medinah
Latvia Riga (only commercial areas)
TAV Airports provides service in all areas of airport operations such as duty-
free, food and beverage, ground handling, IT, security and operations services. The Company and its subsidiaries, provided service to approximately 575 thousand flights and 72 million passengers in 2012. The Company’s shares are listed in the Istanbul Stock Exchange since February 23, 2007, under the ticker code “TAVHL”
Disclaimer
57
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 30 April , 2013