Athens International Airport

A successful airport in challenging times

Prof. Stratos PapadimitriouChairman of the Board of Directors

Setting-up a new airport

Athens International Airport (AIA) is located at “Mesoghia”

� A central location

� 33 km from City Centre

� Between 3 ports

� With well-established access

� Modern motorway system

� Suburban rail and metro link

� Expanded bus transport network

6

AIA is a pioneer PPP greenfield project

� 1996-2026 “usufruct” BOT contract (ADA)

� ADA ratified as Law 2338/95, provides for extension

� A 2.2 billion Euro Project

� 60% funded by commercial debt

Hochtief Airport 26.67%

Hochtief Airport Capital 13.33%•Hastings Fund Mngt (Australia)

•Caisse de dépôt & placement du Québec (Canada)

•KfW-IPEX Bank (Germany)

Copelouzos Family 4.99%

Greek State 55.00%

• Ministry of Economy & Finance

• Ministry of Infrastructure, Transportation & Networks

� User recovery principle

� a new airport company created from “zero base”

� a “commercial, profit-oriented company of the private sector”

� run by a Board of Directors: (4) Private Shareholders, (4) Greek State , (1) Independent,

� and CEO proposed by the private shareholders

� with a wide corporate scope of commercial rights and services,

� with a right to set Airport charges “under the Dual Till” principle,

� with an option to be listed in the stock exchange

…and a novel private sector governance

One of the most modern airports in Europe

� 2 independent runways

� 24-hr operation

� 168 T m2 MTB, 34 T m2 STB

� 24 Contact Bridges

� 75 active remote positions

� 3 Maintenance Hangars

� 4 Cargo Facilities, 30+ T m2

� 3 Catering Facilities

� 24,000 m3 TF and HRS

� 53km External Fuel Pipeline

Starting-up successfully a new airport

+

Active Infrastructure Manager

Airport Marketing

IT & T Provider

Defining a clear role of the Airport Company

11

Lean client-focused organisation designed on business units

C E O

Business UnitAviation

Business UnitConsumers

Business UnitProperty

Business UnitIT & T

Corporate Unit

Finance & Admin.

CFOCOO CDO

BoD

Security Services

Environmental

Communications &

Marketing

Legal

Corporate Planning

Corporate Control

Internal Audit

Human Resources

Corporate Quality

TechnicalServices

� VBM VBM VBM VBM in place – aaaa valuablevaluablevaluablevaluable managementmanagementmanagementmanagement &&&& decisiondecisiondecisiondecision makingmakingmakingmaking tooltooltooltool

� ((((ddedddedddeddded aluealuealuealue onononon ssetsssetsssetsssets)))) keykeykeykey metricmetricmetricmetric,,,, incorporatingincorporatingincorporatingincorporating assetassetassetasset valuevaluevaluevalue &&&& costscostscostscosts inininin valuevaluevaluevalue measurementmeasurementmeasurementmeasurementAVA AVA AVA AVA AA AA V V V V A A A A

� learlearlearlear viewviewviewview onononon ssss drivingdrivingdrivingdriving valuevaluevaluevalue creationcreationcreationcreation onononon companycompanycompanycompanyCC CC KPI KPI KPI KPI

12

Airline Services

101 Service Providers

Concessions Outsourcing

Terminal Commercial

Real Estate

� Retail (17)

� F&B (5)

� Services (14)

� Advertising (1)

� Hotel (1)

� Office Bldg (1)

� Gasoline St. (1)

� Retail Park (4)

� Exhibition Centre (1)

� Security (3)

� Fire & First Aid (2)

� Maintenance & Cleaning (7)

� Waste (1)

� Parking & Transportation (2)

� IT&T (3)

Total: 38 Total: 37 Total: 8 Total: 18

� IF-Catering (2)

� Cargo (4)

� Fuel (3)

� Ramp & Bagg.

Handling (5)

� Pax Handling (7)

� Ancillary (17)

…supported by a concession & outsourcing business model

Payroll: 687 Outsourced: 1100 Concessed: 7500 Total: 9300

7% 12% 81% 100%

Running an Airport Profitably

Value for Money Services

Accelerate Profitable Growth

� Development of Current Traffic

� The Low-cost Carrier Strategy

� The Regional Development Strategy

Aeronautical

� Commercial Terminal Development

� Real Estate Development

� IT&T Expansion

Non-Aeronautical

Based on a solid customer focused strategy

14.515.416.2

16.5

10.2 11.812.2

13.714.3

15.1

16.5

1,5031,400

1,352

995 9901,056

1,1491,232

1,3141,423 1,435

9

10

11

12

13

14

15

16

17

18

Apr-Dec

2001

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

0

200

400

600

800

1,000

1,200

1,400

1,600

AIA Traffic Europe Traffic

15

Demonstrating strong traffic performance until 2008

ΑΙΑ

Pax, m

illio

n

AIA 2002-7 CAGR 6.9% AIA

-0.4%

Europe +0.7%

� From 2008 onwards, the recession -with different timing

vs. Europe- affects AIA traffic

� Greek financial crisis impacts AIA from 2010

AIA-1.5%

Europe -5.5%

2008:Recession starts/High fuel prices

Euro

pe

Pax, m

illion

European airports 2001-7 CAGR 6.1%

2010:Europe exits recession/Greek financial

crisis

2009:Europe in recession

AIA-5.0%

Europe +3.6%

2011:Greece in deep

recession

AIA-6.2%

Europe +7.3%

16

379.5406.4419.5420.5

227.4271.5

290.8329.8 331.7 356.5

399.3

28.9

267.0220.5

176.899.3145.8

124.9

105.8 104.0

243.9163.7

129.5

-9.614.3 29.0 47.1

61.894.6

125.7149.6 158.5152.5

0

50

100

150

200

250

300

350

400

450

Apr-Dec

2001

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

-40

0

40

80

120

160

200

240

280

320

Revenues Closing cash PBT

With continuous revenue and profit growth and healthy cash position

2001 10 month2001-2005 PBT is based on GAAP2006-2010 PBT is according to IFRS2009 PBT & Revenues excluding once-off provisions impact of €112 m and €91.5 m respectively

PBT &Closing Cash

m €

� 2002-11 shareholder dividends €679 million

Revenues

m €

17

At the top of European airports benchmark

� At top-3 of European

airports in revenue

generation

� In addition to high

aero revenues…

� …AIA also excels in

commercial activities

Revenues per Passenger

0.0

8.0

16.0

24.0

32.0

Paris

Heathrow

Athens

Oslo

Zurich

Amsterdam

Brussels

BAA Group

Copenhagen

Vienna

Berlin

Milano

Geneva

ANA

Stockholm

Roma

AENA

SDR / Pax

Total Revenues / Passenger Average

Notes:- Figures as per 2009 financial year

- For Athens, 2009 exludes extraordinary items Source: Leigh Fisher Airport Performance Indicators 2011

Non Aeronautical Revenue per Passenger

0.0

3.0

6.0

9.0

12.0

15.0

Oslo

Heathrow

Paris

Athens

BAA Group

Berlin

Brussels

Zurich

Copenhagen

Amsterdam

Geneva

Milano

Vienna

ANA

Roma

Stockholm

AENA

SDR / Pax

Non Aero Revenue per Passenger Average

Source: Leigh Fisher Airport Performance Indicators 2011

Notes:- Figures as per 2009 financial year

- For Athens, 2009 exludes extraordinary items

18

…with first position in profitability

� AIA offers value-for-

money services…

� …maintaining cost

competitiveness

� High performance in

all value drivers…

� …leads to No 1

position in profitability

Operating Expenses per Passenger

0.0

5.0

10.0

15.0

20.0

Heathrow

Paris

Amsterdam

Berlin

BAA Group

Zurich

Oslo

Brussels

Geneva

Milano

Vienna

Athens

Copenhagen

Stockholm

ANA

Roma

AENA

SDR / Pax

Operating Expenses / Passenger Average Source: Leigh Fisher Airport Performance Indicators 2011

NoteFigures as per 2009 financial year

EBITDA per Passenger

0.0

5.0

10.0

15.0

20.0

Athens

Paris

Oslo

Zurich

Brussels

Copenhagen

BAA Group

Heathrow

Vienna

Amsterdam

ANA

Milano

Roma

Stockholm

Geneva

Berlin

AENA

SDR / Pax

EBITDA / Passenger Average Source: Leigh Fisher Airport Performance Indicators 2011

Notes:

- Figures as per 2009 financial year

- For Athens, 2009 exludes extraordinary items

19

Restructured EIB loan & early loan repayments to lower debt costs

€, m

0

200

400

600

800

1000

1200

1400

Initial Repaid April 2012

Shareholder Loan

Commercial Loan

EIB

€997 m €678 m

€328 m

Total€1,370 m

€45 m

Repaid by 2005

€328 m

€319 mRestructured with EIB in 2009

Repaid by 2008

0

50

100

150

200

250

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Greek State Tax Greek State Dividends

Greek State ADF Private Shareholders

Income for Greek State €871 mil; three times higher than private shareholders

Total 2002-2011 €1,169.4 m

8.2

43.163.3 65.5

101.9

146.2

166.1

263.8

Greek State

€871.4m Private

Shareholder

€298.0 m

€, m

149.4161.8

21////////44 44 2323 2323 20122012 20122012

One of the most renowned airports worldwide for its operational and business excellence

� “Value for Money” strategy:

� Ample Capacity (>21 mio pax) with potential to expand up to 50 mio pax

� 24-hour operation in state-of the-art facilities with no curfews and fast turnaround times

� Only medium/large Schedule Facilitated European airport

� Effective aeronautical strategy with 67 operating airlines serving 106 destinations

� High Quality Passenger Services

� Proven Operational Excellence (e.g. 2004 ATH OG, 2007 Champions League)

� No operational disruptions, No industrial action

� Exporting its know-how to other airports, e.g. Sydney, Beijing, Amman, Budapest, Dubai,

Abu Dhabi, Tirana, Dusseldorf, Hyderabad, Astana, Warsaw, Singapore, 5 Greek Airports

30 awards and distinctions

in 10 years of operations

in all aspects of airport business

22

The Economic Impact

23

From Infrastructure to Business Community

Infrastructure Business EntityAirport Business Community

Impact on Economy and Society

� 2 Runways

� 24hour operation

� 21 million passenger capacity

� Aeronautical Business

� Commercial Business

� Profitability

� CSR

� 15 million passengers

� 4,9 million visitors

� 300 Companies

� 5,000 Suppliers

� 15,000 Employees

Offices - 2001Cargo & Catering

2001

Terminal Retail Area 2001

Train Station 2003/04

Airport Hotel 2001

Factory Outlet -2005

IKEA & Electronics Store 2004

Leroy Merlin 2006 Exhibition Centre - 2009

8MW PV Park 2011

An Airport City has been developed…….with potential for more

25

IT&T Network

Energy NetworkWaste

Management System

Industrial Waste

Treatment Facility

Sewage Treatment Plant

…an Airport Community under a single utility system

26

…with wider socio-economic impact

� A 2009 Study by Athens University of Economic & Business

on the impact of Athens Airport on the Greek Economy

� AA AAirport annually creates €.... billionbillionbillionbillion economiceconomiceconomiceconomic addedaddedaddedadded valuevaluevaluevalue fromfromfromfrom directdirectdirectdirect,,,, indirectindirectindirectindirect,,,,44 44 89 89 89 89

inducedinducedinducedinduced andandandand incrementalincrementalincrementalincremental tourismtourismtourismtourism effectseffectseffectseffects

� irportirportirportirport createscreatescreatescreates moremoremoremore thanthanthanthan ,,,, jobsjobsjobsjobs onononon locallocallocallocal,,,, regionalregionalregionalregional andandandand nationalnationalnationalnational levellevellevellevelAA AA 6363 6363 000 000 000 000

� irportirportirportirport addedaddedaddedadded valuevaluevaluevalue representsrepresentsrepresentsrepresents ....%%%% ofofofof reekreekreekreekAA AA 2222 1414 1414 G G G G GDP GDP GDP GDP

hehehehe largestlargestlargestlargest engineengineengineengine forforforfor economiceconomiceconomiceconomic growthgrowthgrowthgrowth andandandand jobjobjobjobTT TT

creationcreationcreationcreation inininin reecereecereecereece G G G G

Addressing Current Challenges

Current circumstances pose new challenges…

� Privatised Olympic and Aegean announced merge rejected by EU

� Airlines consolidating their network

� Pros and cons of non-merge: Lower airport home carrier dependence

vs. doubtful sustainability of two carriers

Developments in Athens aviation market

� Impact on Greek travellers’ traffic demand & business travel

� EU/ECB/IMF pressure on production costs & prices

� Athens retail & property market

� Athens city destination profile

Greek economy crisis

How does the Airport Company respond?

Macroeconomic Environment

Athens

Aviation

Market

II. Reduce operating costs

III. Optimise investments

IV. Maintain service level

I. Defend Revenues

� Outsourcing strategy

� 3rd party costs reduction exercise in 2008-11 with 18% opex

savings

� Staff reduced since 2008 through attrition and non-replacement

II. Reducing operating expenses

� Aero revenues: defending volumes, protecting margins

� Commercial revenues: retain high share (40% of revenues – 65%

of profits)

I. Defending revenues

In a low-growth environment, costs become a major value driver

� Value-for-money services a key strategy

� AIA unique model for service level monitoring

IV. Maintaining service level

� “Sweating the assets”

� Investing in value-adding activities: 8MW Photovoltaic park,

External business activities

III. Optimizing investments

Adapting to changes: flexibility in investment planning necessary

AIA remains an attractive investment opportunity

� Despite areas of investors’ concern…

Traffic & aero activities

Commercial activities

Regulation InfrastructureFinancial

Performance

� …AIA demonstrates strong points and constitutes an

attractive investment opportunity

Concession Extension

� To be further enriched…

Concession period

Macro environment