management presentationir.tav.aero/.../tavhl_investor_presentation_1q18.pdf · management...

Management Presentation April 2018

Investment Highlights

2

Turkey is the fastest growing aviation market in Europe

Diversified, balanced portfolio with leading market positions

Strong momentum with EBITDA posting 28% CAGR between 2006 and 2017

Well-positioned to benefit from further organic and inorganic growth

Attractive market with strong growth prospects

Leading airport operator with diversified portfolio

& integrated structure

Strong financial performance and cash

flow generation “Platform play”

Passenger growth of 12% p.a. during 2002-2017

Projected passenger growth of 10% p.a. between 2017-2023(1)

Aggressive capacity expansion plans of major airlines in Turkey(2)

Access to fast growing MENA region

#1 airport terminal operator in Turkey

14* airports operated in Turkey, Georgia, Tunisia, Macedonia, Saudi Arabia, Croatia and Latvia

80 airports around the world have a TAV subsidiary functioning in them

Strong vertically integrated value chain

As of April 2018

* TAV will add 3 more airports in Saudi Arabia, bringing airports operated to 17.

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

Hard currency based cash flow & visible earnings

50% dividend payout policy

TAV will receive compensation for all loss of profit in case of new Istanbul airport opening before 2021

Central and Eastern Europe, Africa, Middle East, South East Asia and Cuba

Inorganic growth of service companies

(1) Source: Turkey’s Ministry of Transport (2) THY and Pegasus web site

Exceptional Growth

3

Revenue (€m)

402 508 627 640 785 881 1099 1205 1092

847 904

983 1079 1,104 1143

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pre-IFRS11

Post-IFRS11

EBITDAR (€m)

170 189 267 311 342 387 483 555 597

463 524

569 621 611

683

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Pre-IFRS11

Post-IFRS11

23 30

41 42 48

53

72

84 95

102 105 115

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-71

-38

4

51 50 53

129 133

218 210

127

175

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Passenger (m) Net Profit (€m)

2006 2007

26 51

120

1

5

234 31 44

1

206 222 242

2016 Restated

2016 Restated

TAV Corporate and Shareholder Structure

4

26 51

120

1

234 31 44

1

242 247 252

9

5.06%

1.29%

3.20%

44.33%

46.12%

Shareholder Structure (as of April 2018)

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%)

Academy (100%)

Havas (100%)

TGS (50%)

Havas Latvia (100%)

Ataturk (100%)

Esenboga (100%)

Adnan Menderes (100%)

Gazipasa Alanya (100%)

Milas Bodrum (100%)

Medinah (33%)

Tbilisi (80%) & Batumi (76%)

Monastir & Enfidha (67%)

Skopje & Ohrid (100%)

Latvia (100%)

Zagreb (15%)

Havas Saudi (67%)

Yanbu, Hail & Qassim (50%)

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

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

TAV Airports Business Areas

5

ATU (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, Latvia, Oman and Medinah Operating in Houston, USA, since September 2015.

BTA (100%) Operating in Turkey, Georgia, Macedonia, Tunisia, Latvia, Saudi Arabia, Oman and Croatia Operates Istanbul Airport Hotel (128 rooms) Operates İzmir Airport Hotel (81 rooms) Total seating capacity of c. 23 thousand at c. 380 points including BTA IDO and UNIQ Baker and pastry factory serving in Turkey BTA Denizyollari (50%) is the F&B operator of Istanbul Deniz Otobusleri (IDO) Uniq shopping mall food-court Operating in New Muscat Int’l Airport since March 2018

HAVAS (100%) Major ground handler in Turkey with a c.70% share Operates in 31 airports in Turkey including Istanbul, Ankara, Izmir and Antalya TGS (50%) operates in Istanbul (IST&SAW), Ankara, Izmir, Antalya, Adana, Bodrum and Dalaman 100% owner of Havas Latvia, with c.66% market share 67% owner of Saudi HAVAS operating in Medina

TAV OS (100%) Commercial area allocations and lounges, travel agency services

TAV Technologies (100%) Airport IT services

TAV Security (100%) Security service provider in Istanbul, Ankara, Izmir and Gazipasa

TAV Latvia (100%) Commercial area management in Riga Airport

Airports Duty free Food and beverage Ground handling Others

Turkey Istanbul Ataturk Airport (100%)

Ankara Esenboga Airport (100%) Izmir Adnan Menderes Airport (100%) Gazipasa Alanya Airport (100%) Milas Bodrum Airport (100%)

Georgia

Tbilisi (80%) and Batumi Airports (76%)

Tunisia Monastir and Enfidha Airports (67%)

Macedonia Skopje and Ohrid Airports (100%)

Saudi-Arabia Medinah (33%) Yanbu, Hail &Qassim (50%)*

Croatia Zagreb Airport (15%)

*The airports are planned to be taken over by 1H 2018.

Source: State Airports Authority

Growth of the Turkish Aviation Market

6

Foreign Visitors in Turkey

Deregulation of the domestic market in 2003

2nd largest country in Europe in terms of population: 81m (1)

In 2016, foreign visitors amounted 25m (vs. 36mn in 2015) (2)

In 2017, foreign visitors reached to 32,4m (+28%)

Passport ownership of Turkish citizens (+18) is only 8%. (3)

Only 11% of Turkish people vacationed abroad. (3)

Aircraft number in Turkey expected to reach 750 in 2023 (4)

Source: DHMI, (1)Turkstat, (2) Ministry Culture and Tourism, (3) Konda Research and Consultancy 2017 Turkey Report (4) Ministry of Transport

41 51 58 65 76 86 97 103 110 116 123 180

44 52 59 66

73 80

84 71 83 89

100

170

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e 2019e 2023e

International

Domestic223

86 104 118 130

149 166 181 174 193 205

350

State Airports Authority Turkish Aviation Market Forecast

Mn, pax

//

Foreign Visitors in Turkey (mn)

-16%

6%

16%

5% 7%

8% 12%

6%

38% 32%

-10% -7% -4%

18% 16%

43% 46% 46% 43%

22% 22% 31%

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

2018/2017 2017/2016 2016/2015

28% -30%

4,5 3,6 0,9

4,7

5,3 5,6

3,9

3,6

14,1 13,5

9,3

9,5

5,7 6,2

4,8

6,9

7,1 7,3

6,6

7,6

2014 2015 2016 2017

Russia Federation Germany Rest of Europe Total Asia Rest of the world

36,8 36,2

25,4

32,4 3%

-11% 16% 8%

-22% 45%

-5%

-31% 3%

6% -30% -8%

-20%

-75% 422%

-2%

-30% 28%

YTD 35%

Traffic Outlook

7 Source: IATA, Airbus Global Market Forecast 2017, Boeing Current Market Outlook 2017

Source: IATA, Eurocontrol, DHMI

Source: THY presentation (February 2018) Pegasus Presentation (March 2018)

1

Source: ADI

2 3 4

World Air Traffic will double in 20 years

Turkish air traffic will double in 7 years

Aggressive fleet expansion plans of

major airlines in Turkey

~7% international seat capacity growth in

2018

Eurocontrol, projects 7% CAGR for Turkey until 2020 DHMI expects 10% CAGR in Turkey until 2023 IATA expects Turkish air traffic to grow at a 4.7% CAGR in the next twenty years

Boeing projects 4.7% CAGR for world air traffic (2017-2036) Airbus projects 4.4% CAGR for for world air traffic (2017-2036) IATA expects 7.8 bn pax to travel in 2036 a near doubling of 4 bn in 2017

~7% seat capacity increase expected at Ataturk Airport international scheduled traffic in 2018

THY to expand fleet size to 372 by 2020 (from 329 in 2017) Pegasus to increase fleet to 94 by 2020 (from 76 in 2017)

Traffic Performance

Istanbul Traffic started to recover in April with low base when Turkish Airlines declared to re-utilise grounded fleet. Strong O&D recovery since the second quarter of 2017.

Ankara Significant growth continues thanks to year-on-year effect of routes opened in mid/late 2017

İzmir Increased seat capacity on several routes by Turkish carriers

Milas-Bodrum Off-season

Gazipasa

Off-season

Medinah Strong growth in scheduled international and Umrah traffic

Tunisia Recovery started following lift of UK travel ban in late July, off-season

Georgia Increase in seat capacity, new routes

Macedonia Driven by WizzAir

Zagreb Driven by new routes, new terminal opened at the end of March 2017

Pax Strong growth in all markets continues

Source: Turkish State Airports Authority (DHMI), Georgian Authority, TAV Tunisie, TAV Macedonia, TIBAH and MZLZ Note: DHMI figures for 2017 are tentative. (1) Both departing and arriving passengers, including transfer pax, pax numbers NOT stake adjusted (2) Commercial flights only

6

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8

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January-March January-December

Passengers (1) 2017 2018 Chg 2016 2017 Chg %

Ataturk Airport 12,788,210 15,538,831 22% 60.415.470 63.727.448 5%

International 8,628,611 10,934,412 27% 41.281.937 44.277.101 7%

Domestic 4,159,599 4,604,419 11% 19.133.533 19.450.347 2%

Esenboga Airport 3,137,106 4,435,137 41% 13.044.116 15.845.878 21%

International 388,849 493,405 27% 1.496.876 1.991.979 33%

Domestic 2,748,257 3,941,732 43% 11.547.240 13.853.899 20%

Izmir Airport 2,665,033 3,093,933 16% 12.051.243 12.823.701 6%

International 276,719 335,153 21% 2.096.076 2.354.622 12%

Domestic 2,388,314 2,758,780 16% 9.955.167 10.469.079 5%

Gazipaşa Airport 81,037 104,873 29% 718.718 823.238 15%

Milas-Bodrum 265,231 330,468 25% 3.221.776 3.509.347 9%

International 1,975 4,413 123% 909.734 935.849 3%

Domestic 263,256 326,055 24% 2.312.042 2.573.498 11%

Medinah 1,820,680 2,088,466 15% 6.572.787 7.805.295 19%

Tunisia (Monastir&Enfidha) 118,743 153,845 30% 1.593.780 1.683.604 6%

Georgia (Tbilisi&Batumi) 550,881 757,506 38% 2.560.462 3.654.389 43%

Macedonia (Skopje&Ohrid) 369,177 448,729 22% 1.794.376 2.027.344 13%

Zagreb Airport 516,000 585,576 13% 2.766.087 3.092.047 12%

TAV TOTAL (3) 22,312,098 27,537,364 23% 104.738.815 114.992.291 10%

International 12,024,627 15,092,631 26% 58.745.737 65.220.285 11%

Domestic 10,287,471 12,444,733 21% 45.993.078 49.772.006 8%

January-March January-December

Air Traffic Movements (2) 2017 2018 Chg 2016 2017 Chg %

Ataturk Airport 97,691 106,701 9% 447.963 449.448 0%

International 68,594 75,505 10% 318.355 314.713 -1%

Domestic 29,097 31,196 7% 129.608 134.735 4%

Esenboga Airport 22,758 29,207 28% 94.170 106.746 13%

International 3,138 3,669 17% 12.694 15.237 20%

Domestic 19,620 25,538 30% 81.476 91.509 12%

Izmir Airport 17,729 18,817 6% 78.846 82.853 5%

International 1,978 2,347 19% 15.697 16.758 7%

Domestic 15,751 16,470 5% 63.149 66.095 5%

Gazipaşa Airport 601 769 28% 5.338 5.662 6%

Milas-Bodrum 1,773 2,209 25% 22.832 23.260 2%

International 16 44 175% 6.499 6.074 -7%

Domestic 1,757 2,165 23% 16.333 17.186 5%

Medinah 12,829 14,973 17% 54.451 58.045 7%

Tunisia (Monastir&Enfidha) 1,603 1,421 -11% 12.631 12.011 -5%

Georgia (Tbilisi&Batumi) 6,346 8,006 26% 27.788 37.908 36%

Macedonia (Skopje&Ohrid) 3,383 4,018 19% 16.883 18.130 7%

Zagreb Airport 8,512 8,874 4% 40.796 41.585 2%

TAV TOTAL (3) 173,225 194,995 13% 801.698 835.648 4%

International 99,554 111,363 12% 476.537 491.128 3%

Domestic 73,671 83,632 14% 325.161 344.520 6%

251 243 223

8

34% 27% 29%

-13% -12%

-5%

7%

-1%

3%

28% 28%

14% 19%

23% 20%

-30%

-20%

-10%

0%

10%

20%

30%

40%


18/17 change 17/16 change 16/15 change

Istanbul Int2int Transfer and O&D Pax, Yoy % Change

3,0

3,5

4,0

4,5

5,0

5,5

6,0

6,5

7,0


2014 Seat Capacity 2015 Seat Capacity2016 seat capacity 2017 Seat Capacity

International Scheduled Traffic Developments & Outlook

9

Istanbul International O&D Pax Istanbul International Seat Capacity

Istanbul Transfer Pax / International Pax

2011 30%

2012 33%

2013 38%

2014 38%

2015 40%

2016 49%

2017 47%

+7%

(m, pax)

235 242 250

8

O&D : 6%

Transfer : 21%

2008-2017 CAGR

-16%

THY started to ground aircraft 2018e: ~+7%

9% YTD 30%

-30%

-20%

-10%

0%

10%

20%

30%

40%

2016

Jan

2016

Feb

2016

Mar

2016

Ap

r

2016

May

2016

Ju

n

2016

Ju

l

2016

Au

g

2016

Sep

2016

Oct

2016

No

v

2016

Dec

2017

Jan

2017

Feb

2017

Mar

2017

Ap

r

2017

May

2017

Ju

ne

2017

Ju

ly

2017

Au

g

2017

Sep

2017

Oct

2017

No

v

2017

Dec

2018

Jan

2018

Feb

2018

Mar

O&D Transfer

IFRIC 12 Adjusted Financials (in m€, unless stated otherwise) 1Q17 (5) 1Q18 Chg %

Revenue (1) 226.2 248.4 10%

EBITDAR(2) 117.0 137.2 17%

EBITDAR margin (%) 51.7% 55.2% 3.5 ppt

EBITDA(2) 77.6 96.7 25%

EBITDA margin (%) 34.3% 38.9% 4.6 ppt

FX Loss (0.2) (19.1) nm

Deferred Tax Expense (2.8) (2.9) 5%

Net Profit(3) 11.7 7.2 -39%

Capex 10.2 20.5 101%

Net Debt 925 746 -19%

Average number of employees 15,947 17,219 8%

Number of passengers (m) 22.3 27.5 23%

- International 12.0 15.1 26%

- Domestic 10.3 12.4 21%

Duty free spend per pax (€) (4) 14.6 12.7 -13% (1) IFRIC 12 adjusted (please refer to page 21, for revenue reported by Groupe ADP)

(2) IFRIC 12 adjusted, before impairment (please refer to page 21, for EBITDA reported by Groupe ADP)

(3) Attributable to equity holders of the company

(4) Transfer numbers are tentative and subject to change

(5) Restated

1Q18 Summary Financials

10

Source: TAV Airports Holding, DHMI, TAV Tunisia, TAV Macedonia, Georgian Aviation Authority, TIBAH , MZLZ

Spend per Pax

From €14.6 to €13.3, mainly due to depreciation of TRY impacting Turkish passengers’ spending, as well as weakness in European passengers.

Pax -+23%

Istanbul Airport international pax +27% in 1Q18 with +23% in international-to-international transfer pax and +30% in international O&D O&D recovery started in Q2 2017 Share of transfer is 46% in Istanbul (1Q17: 47%)

6

235 242 250

8

0 0 0

çizgiler

251 243 223

Revenue +10%

Revenue growth supported by traffic growth, while impacted by depreciation of TRY, strong EUR vs USD as well as lower ground handling revenue %45 aero, %55 non-aero

EBITDA +25%

EBITDA margin expansion due to cost control and TAV Istanbul’s rent expense increasing less than revenue growth

FX Loss n.m.

Forward EUR transactions and depreciation of TRY impacted FX loss

Net Profit -39%

Impacted by FX loss and higher tax expense

Net Debt -19%

Net debt decreased with cash generation

EBITDAR +17%

EBITDAR margin expansion, mainly due to cost control

77,6

28,6

4,2 2,2 -1.1 -4.2 -4.7 -5.9

96,7

1Q17

Vo

lum

e

EPU

**

Mix

Ren

t

F/X

Oth

er

Price

1Q18

77,6

10,0 5,4

1,9 1,7 0,9 0,7 0,6 0,2 -0.0 -0.3 -0.4 -1.3

96,7

1Q

17

Istanb

ul

Oth

ers

Havas

Ge

orgia

Izmir

Mace

do

nia

Tun

isia

Bo

dru

m

Gazip

asa

Elimin

ation

BT

A

An

kara

1Q

18

226,2

10,8 4,0 3,6 1,4 1,0 0,9 0,7 0,1 0,1 0,1 -0.1 -0.2

248,4

1Q17

Istanb

ul

BTA

Oth

ers

Geo

rgia

Havas

Izmir

Maced

on

ia

An

kara

Bo

dru

m

Gazip

asa

Tun

isia

Elimin

ation

1Q18

1Q18 Revenue and EBITDA Bridges *

Revenue Bridges (€m) EBITDA Bridges (€m)

26 51

120

1

5

234 31 44

1

206 222 242

* IFRIC 12 adjusted

251 243 223

11

** Equity Pick -up

Ege

Ege

226,2

36,7 4,4 3,6 2,2 0,1

-24.8

248,4

1Q1

7

Vo

lum

e

Oth

er

Price

Mix

On

e-Offs

F/X

1Q1

8

2018 1Q Comparison (2017 figures restated)

56% 32%

3% 4%

55% 28%

2% 6%

9%

Istanbul Other Airports BTA HAVAS Other Services

12

Consolidated Revenue (1) (€m) Net Profit (2) (€m)

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

226 248

1Q17 1Q18

78 97

1Q17 1Q18

12

7

1Q17 1Q18

(1) IFRIC 12 adjusted


21%

32% 13%

9%

25%

21%

33% 12%

10%

24%

Duty-free Aviation Ground-handling F&B Other

32%

22% 16%

17%

7% 6% 33%

22%

17%

16%

7% 5% 0%

Personnel Concession rent Other

D&A Services rendered Catering

1Q17

1Q18

EBITDAR (1) (€m)

26 51

120

144 146 148

247 166 63

234 31 44

85 129 193

186 186 186

206 222 242

230 231 232

253 219 151

248 182 187

5

228 238 248

245 245 247

EBITDA (1) (€m)

117 137

1Q17 1Q18

2017 FY Comparison (2016 figures restated)

54% 33%

3% 4%

48%

35%

3% 9%

5%

Istanbul Other Airports BTA HAVAS Other Services

13

Consolidated Revenue (1) (€m) Net Profit (2) (€m)

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

1104 1143

FY16 FY17

459 519

FY16 FY17

127

175

FY16 FY17

(1) IFRIC 12 adjusted


22%

32% 13%

8%

25%

21%

34% 13%

9%

23%

Duty-free Aviation Ground-handling F&B Other

33%

20% 17%

14%

9% 7% 31%

21% 15%

18%

9% 5%

Personnel Concession rent Other

D&A Services rendered Catering

FY16

FY17

EBITDAR (1) (€m)

26 51

120

144 146 148

247 166 63

234 31 44

85 129 193

186 186 186

206 222 242

230 231 232

253 219 151

248 182 187

5

228 238 248

245 245 247

EBITDA (1) (€m)

611 684

FY16 FY17

Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s (1Q18)

14

(€m) Revenue EBITDA EBITDA

Margin (%) Net Debt

Airports 175.7 81.1 46% 803 Istanbul 119.7 53.7 45% 32 Ankara 14.9 7.8 52% 7 Ege 13.4 7.6 57% 213 Gazipasa 0.3 -0.5 nm 49 Tunisia 2.2 -2.6 nm 355 Georgia 17.0 12.8 75% -14 Macedonia 6.4 2.2 34% 42 Bodrum 1.8 0.1 8% 118

Services 101.0 16.3 16% -57 Havas 27.0 6.0 22% 8 BTA 36.7 1.6 4% 6 Others* 37.3 8.7 23% -70

Total 276.6 97.5 35% 746

Elimination -28.2 -0.7 0

Consolidated 248.4 96.7 39% 746

Revenue (€m) 1Q17* 1Q18 Chg.(%)

Airports 161.8 175.7 9% İstanbul 109.0 119.7 10% Ankara 14.8 14.9 1% Ege 12.5 13.4 7% Gazipasa 0.3 0.3 22% Tunisia 2.3 2.2 -5% Georgia 15.6 17.0 9% Macedonia 5.7 6.4 12% Bodrum 1.7 1.8 4%

Services 92.4 101.0 9% Havas 26.0 27.0 4% BTA 32.7 36.7 12% Others 33.7 37.3 11%

Total 254.2 276.6 9% Elimination -28.0 -28.2 1% Consolidated 226.2 248.4 10% ATU** 68.3 76.0 11% TGS** 25.5 29.0 14% TIBAH** 16.8 16.8 0%

Number of Employees (eop) 1Q17* 1Q18

Istanbul 2,986 3,078 Ankara 949 952 Ege 918 931 Tunisia 800 771 Gazipasa 57 65 Georgia 778 876 Macedonia 667 681 Havas 3,880 4,251 BTA 2,969 3,464 Holding 109 114 O&S 722 717 Technologies 260 337 Security 899 1,193 Latvia 6 6 Bodrum 75 79 Academy 2 2

TOTAL 16,077 17,517

EBITDA (€m) 1Q17* 1Q18 Chg.(%)

Airports 68.5 81.1 18% Istanbul 43.7 53.7 23% Ankara 9.1 7.8 -14% Ege 6.8 7.6 13% Gazipasa -0.4 -0.5 3% Tunisia -3.1 -2.6 nm Georgia 11.1 12.8 15% Macedonia 1.5 2.2 43% Bodrum -0.1 0.1 nm

Services 9.5 16.3 72% Havas 4.1 6.0 45% BTA 2.0 1.6 -20% Others* 3.3 8.7 161%

Total 78.0 97.5 25% Elimination -0.4 -0.7 88% Consolidated 77.6 96.7 25% ATU** 5.9 6.9 17% TGS** 1.9 1.1 -41% TIBAH** 3.4 4.2 21%

*Others EBITDA includes share of profit of equity accounted investees (equity-pick up).

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**Equity accounted investee *Others EBITDA includes share of profit of equity accounted investees (equity-pick up). * Restated

Selected Financials by Assets (IFRIC 12 Adjusted) and employee #s (FY17)

15

(€m) Revenue EBITDA EBITDA

Margin (%) Net Debt

Airports 806.9 430.6 53% 668 Istanbul 506.3 249.6 49% -76 Ankara 67.4 44.5 66% 18 Ege 68.5 44.0 64% 186 Gazipasa 4.4 1.1 25% 48 Tunisia 23.0 -2.5 nm 348 Georgia 85.5 68.1 80% -15 Macedonia 28.0 11.7 42% 43 Bodrum 24.0 14.1 59% 116

Services 458.0 88.7 19% -81 Havas 139.5 49.1 35% 7 BTA 158.4 13.7 9% 7 Others* 160.1 25.9 16% -95

Total 1,264.9 519.2 41% 586

Elimination -122.2 -0.4 0

Consolidated 1,142.7 518.9 45% 586

Revenue (€m) FY16* FY17 Chg.(%)

Airports 777.5 806.9 4% İstanbul 500.9 506.3 1% Ankara 67.5 67.4 0% Ege 66.5 68.5 3% Gazipasa 4.5 4.4 -1% Tunisia 24.3 23.0 -5% Georgia 62.8 85.5 36% Macedonia 26.6 28.0 5% Bodrum 24.4 24.0 -2%

Services 456.8 458.0 0% Havas 131.6 139.5 6% BTA 170.2 158.4 -7% Others 154.9 160.1 3%

Total 1,234.3 1,264.9 2% Elimination -130.1 -122.2 -6% Consolidated 1,104.1 1,142.7 3% ATU** 336.4 342.1 2% TGS** 130.2 126.7 -3% TIBAH** 59.8 70.2 17%

Number of Employees (eop) FY16* FY17

Istanbul 2,936 2,993 Ankara 928 941 Ege 878 928 Tunisia 672 778 Gazipasa 57 62 Georgia 781 876 Macedonia 675 681 Havas 3,853 4,135 BTA 2,904 3,165 Holding 105 111 O&S 700 678 Technologies 277 332 Security 774 1,070 Latvia 6 6 Bodrum 75 78 Academy 3 2

TOTAL 15,624 16,836

EBITDA (€m) FY16* FY17 Chg.(%)

Airports 395.0 430.6 9% Istanbul 245.8 249.6 2% Ankara 40.6 44.5 9% Ege 39.5 44.0 12% Gazipasa 0.9 1.1 25% Tunisia -3.7 -2.5 -32% Georgia 47.1 68.1 45% Macedonia 11.6 11.7 1% Bodrum 13.2 14.1 7%

Services 63.4 88.7 40% Havas 31.8 49.1 54% BTA 13.5 13.7 2% Others* 18.2 25.9 42%

Total 458.5 519.2 13% Elimination 0.3 -0.4 -209% Consolidated 458.8 518.9 13% ATU** 27.4 28.7 5% TGS** 11.2 15.6 40% TIBAH** 26.8 15.1 -43%

*Others EBITDA includes share of profit of equity accounted investees (equity-pick up).

6

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8

0 0 0

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**Equity accounted investee *Others EBITDA includes share of profit of equity accounted investees (equity-pick up). * Restated

2,7 3,3 3,4 3,5

5,5

4,6 4,5

2011 2012 2013 2014 2015 2016 2017

39 62 66

109 105

64 87

53

124 133

218 210

127

175

74%

50% 50% 50% 50% 50% 50%

2011 2012 2013 2014 2015 2016 2017

Dividends Paid Net Income Payout Ratio

CAPEX Development / Dividends

16

Quarterly Capex (€m)(i) Q1 2018 Capex

Dividend Yield (%) Dividend History (€m)

The bulk of the capex was made in new lounges and food courts

(i) Adjusted to exclude effects of IFRIC 12 accounting change

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

26 51

120

1

5

206 222 242

251 243 223

2018 YTD CAPEX

€20m 14

8

14 13 12 14

6

20

9 6

16

11

20

13

19

10 12 12

6

20

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Istanbul Other

218

77 89 53 42

255

361

1 Year 2 Years 3 Years 4 Years 5 Years 6+ Years

Tunisia

TAV Airports

Decentralized Debt Structure - Prudently Levered

17

Net Debt (eop, €m) March

2017 December

2017 March

2018

Airports 941 668 803

İstanbul 131 (76) 32

Ankara 35 18 7

Ege 226 186 213

Gazipasa 47 48 49

Tunisia* 344 348 355

Georgia -13 -15 -14

Macedonia 43 43 42

Bodrum 128 116 118

Services -16 -81 -57

HAVAS 29 7 8

BTA 3 7 6

Holding (stand alone) -54 -101 -80

Others 6 6 9

Total 925 586 746

Gross Debt Maturity Profile (€m)

Door to Door Maturity 8.0 Years

Average Maturity 4.9 Years

Average € Cost of Debt (Hedged*) 4.3%

Net Debt / 2017 FY EBITDA 1.2

* 70% of all loans have fixed rates. -as of March 31, 2018

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0 0 0

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With the Istanbul refinancing the average cost of debt decreased from 4.6% in 2015 to 4.3% in 2018. ·

*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 15

Non-recourse

2018 Guidance

2018 Guidance

Istanbul Ataturk

Airport Int. Pax

Total TAV Airports

Pax Revenue EBITDA CAPEX Net Profit

Istanbul Ataturk

Airport Int. O&D Pax

18

6 to 8 Percent

increase

10 to 12 Percent

increase

2 to 4 Percent

increase

double digit

increase

~ €80m 9 to 11 Percent

increase

5 to 7 Percent

increase

Under our traffic and FX assumptions

Notes: All financial targets have been adjusted to reverse the efects of IFRIC 12 and are compliant with IFRS 11; assuming Istanbul Ataturk Airport will operate for the full year in 2018.

2017 Guidance and Realization

2017 Revised Guidance

Istanbul Ataturk

Airport Int. Pax

Total TAV Airports

Pax Revenue

EBITDAR (EBITDA before concession &

rent)

CAPEX Net Profit

Notes: All financial targets have been adjusted to reverse the effects of IFRIC 12 and are compliant with IFRS 11.

Istanbul Ataturk

Airport Int. O&D Pax

Realization

Guidance is revised due to better than expected passenger recovery and updated FX assumptions.

19

4 to 6 percent

6 to 8 percent

1 to 3 percent

significant increase

~ €50m 6 to 8 percent

6 to 8 percent

7 percent

9 percent

10 percent

3 percent

12 percent

37 percent

€41m

FX Exposure of Operations (FY17)

20

10%

23%

10%

57%

Opex (1)(2)

€75m

€182m

€79m

€452m

98%

1%

Gross Debt

€1092m

4%

18%

56%

22%

Revenue (1)

€716m

€230m

€54m

€281m

96%

4%

Concession Rent Expense

€7m

€158m

€4m

€1282m

€165m

€788m

€1119m

EUR USD TRY Other

(1) Combined figures, pre-elimination IFRIC12 adjusted, includes equity-pick up (€16m) (2) Includes concession rent expenses (€165m), does not include depreciation (€141m)

€22m

Average 31 March

FX Rates 1Q17 1Q18 2017 2018

EUR/TRY 3.93 4.68 3.91 4.87

USD/TRY 3.69 3.81 3.64 3.95

EUR/USD 1.07 1.23 1.07 1.23

EUR/GEL 2.77 3.05 2.63 2.98

EUR/MKD 61.73 61.56 61.73 61.50

EUR/TND 2.45 2.97 2.48 2.98

EUR/SAR 3.99 4.61 4.03 4.62

FX Exposure

21

Hedging

Subsidiaries, TAV Esenboğa, TAV Ege, TAV Macedonia, TAV İşletme and TAV Milas Bodrum enter into swap transactions in order to diminish exposure interest rate risk to manage exposure to the floating interest rates relating to loans used. Interest payments of 100%, 100%, 100%, 100% and 90% of floating bank loans for TAV Esenboğa, TAV Ege, TAV Macedonia, TAV İşletme and TAV Milas Bodrum respectively are fixed with interest rate swaps.. 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 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 March 2018 and 31 December 2017 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.

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8

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Equity Profit or loss

(‘000)

Strengthening of EUR

Weakening of EUR

Strengthening of EUR

Weakening of EUR

31 March 2018

USD - - (17,085) 17,085

TRY - - (3,941) 3,941

Other - - (377) 377

Total - - (21,403) 21,403 31 December 2017

USD - - (23,331) 23,331

TRY - - (2,799) 2,799

Other - - (1,634) 1,634

Total - - (27,764) 27,764

ATU (50%)

22

ATU Financials (€m) Duty Free Spend per Pax (€)

16,6 16,5 16,0

14,4 15,3 15,3

14,2 15,6

13,6 14,9 15,0 14,8

13,3 14,3 14,2

13,1

14,6

12,7

2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

Istanbul TAV

Operations started in 5 Tunisian airports in Q4 2014, ramp up in 2017 (one-off income in Q4 2016).

SPP dropped in 1Q18, mainly due to TRY depreciation impacting Turkish passengers’ spending, as well as weakness in European passengers.

206 222 242

72,1 84,7

93,0 86,5

68,3

85,8 102,0

86,0 76,0

1,5 4,7 10,2 11,1

5,9 6,4 12,7

3,8 6,9

2%

6%

11%

13%

9%

7%

12%

8% 9%

0%

2%

4%

6%

8%

10%

12%

14%

0

20

40

60

80

100

120

1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18

Revenue EBITDA Margin

BTA

23

BTA Financials (€m)

39,5 44,6

48,3

37,8 32,7

40,1 47,5

38,1 36,7

1,9 4,1

6,3

0,7 1,9 2,9 7,0

1,8 1,6

5%

9%

13%

2%

6%

7%

15%

5% 4%

0%

2%

4%

6%

8%

10%

12%

14%

16%

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

Revenue EBITDA

TAV F&B Spend per Pax (€)

1,8

2,1 2

1,6

1,3 1,3 1,3 1,3 1,3 1,3 1,2 1,2

1,1

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q17 1Q18

Predominantly TRY based revenue and opex Cease of third party operations of BTA Logistics during 2016 Croatia added in 4Q17, Muscat added 1Q18

26

64

10

100

29

77

6

112

HAVAS TGS HVS E HAVAS + TGS +HVS E

1Q171Q18

HAVAS

24

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

Havas Solo FX Exposure FY 2017 # of Flights Served (‘000)

* Post IFRS 11

9%

40%

51%

Revenue

3%

73%

24%

Cost

28,0 33,3

39,0

31,3 26,0

34,8

46,9

31,8 27,0

4,2

9,7

17,1

0,4 4,0

11,7

24,0

9,3 6,0

0%

20%

40%

60%

0,0

10,0

20,0

30,0

40,0

50,0

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18


32,4 36,0

39,5

22,3 25,5

32,0 36,8

32,4 29,0

3,3 4,9 5,8

-2,8

1,9 3,8

7,3 2,6 1,1

-20%

-10%

0%

10%

20%

30%

-10,0-5,00,05,0

10,015,020,025,030,035,040,045,0

1Q

16

2Q

16

3Q

16

4Q

16

1Q

17

2Q

17

3Q

17

4Q

17

1Q

18


EUR USD TRY

26 51

120

1

5

206 222 242

IFRIC 12 & Our Adjusted Financials Policy

25

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.”

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

Was: Finance Income Is: Other operating revenue (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

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

An

kara

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

6

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8

251 243 223

Reconciliation of Revenue and EBITDA

26

Revenue Reconciliation (1Q 2018)

243,2

5,2 0,0

248,4

IFR

S R

even

ue

(re

po

rte

d b

yA

DP

)

An

kara

Gu

aran

teed

Pax

Rev

enu

e

Co

nst

ruct

ion

Rev

enu

e

Ad

just

edR

even

ue

(re

po

rte

d b

yTA

V)

EBITDA Reconciliation (1Q 2018)

89,0

5,2 2,5

96,7

EBIT

DA

rep

ort

ed b

yA

DP

An

kara

Gu

aran

teed

Pax

Rev

enu

e

Equ

ity

Pic

k-u

p

EBIT

DA

rep

ort

ed b

yTA

V

Equity Accounted Investees – IFRS 11

27

1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 4Q17 FY17 1Q18 ATU (50%) Revenue 72.1 84.7 93.0 86.7 336.4 68.3 85.8 102.0 86.0 342.1 76.0

EBITDA 1.5 4.7 10.2 11.1 27.4 5.9 6.4 12.7 3.8 28.7 6.9 Net Profit 1.3 3.5 1.8 10.4 16.9 3.3 4.5 8.4 4.3 20.5 5.0 Net Debt 13.3 12.2 18.0 9.3 9.3 8.8 4.5 -1.1 -4.6 -4.6 -9.3

1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 4Q17 FY17 1Q18 TGS (50%) Revenue 32.4 36.0 39.5 22.3 130.2 25.5 32.0 36.8 32.4 126.7 29.0

EBITDA 3.3 4.9 5.9 -2.8 11.2 1.9 3.8 7.3 2.6 15.6 1.1 Net Profit 1.8 2.7 3.5 -3.6 4.4 0.6 2.0 5.0 1.8 9.4 0.3 Net Debt 0 0.0 0.0 0.1 0.1 - 0.0 0.0 -11.4 -11.4 0.0

1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 4Q17 FY17 1Q18

TIBAH (33%) Revenue 14.1 14.8 16.5 14.3 59.8 16.8 18.2 21.4 13.8 70.2 16.8

EBITDA 8.8 6.1 7.1 4.8 26.8 3.4 4.1 5.5 2.1 15.1 4.2

Net Profit 0.8 -1.3 -0.7 -2.9 -4.2 -4.5 -3.7 -0.7 -2.7 -11.6 -1.6

Net Debt 317.0 322.6 315.6 316.5 316.5 311.0 300.7 300.3 283.0 283.0 274.9 1Q16 2Q16 3Q16 4Q16 FY16 1Q17 2Q17 3Q17 4Q17 FY17 1Q18

BTA IDO (50%) Revenue 2.5 2.9 3.7 5.4 11.5 1.2 1.6 2.4 1.1 6.3 1.1

EBITDA 0.2 0.3 0.4 0.5 0.9 -0.2 0.1 0.1 -0.2 -0.2 -0.1

Net Profit 0.1 0.2 0.2 0.2 0.3 -0.4 -0.1 0.2 -0.3 -0.6 -0.2

Net Debt 0.9 0.3 -0.3 0.3 -0.4 -0.2 -0.3 -0.2 -0.1 -0.1 -0.2

HAVAS* pre IFRS 11 post IFRS 11

Revenue Havas Solo + TGS (50%) Havas Solo

EBITDA Havas EBITDA + TGS (50%) EBITDA Havas EBITDA + TGS (50%) Net Profit

Net Profit Havas Net Profit + TGS (50%) Net Profit Havas Net Profit + TGS (50%) Net Profit

BTA** pre IFRS 11 post IFRS 11

Revenue BTA + BTA IDO (50%) BTA

EBITDA BTA EBITDA + BTA IDO (50%) EBITDA BTA EBITDA + BTA IDO (50%) Net Profit

Net Profit BTA Net Profit + BTA IDO (50%) Net Profit BTA Net Profit + BTA IDO (50%) Net Profit

6

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8

251 243 223

*Havas Solo defined as all companies under HAVAS consolidation – TGS **BTA defined as all companies under BTA consolidation – BTA IDO

Income Statement / Balance Sheet

28

INCOME STATEMENT (€m) 1Q17 1Q18

Construction revenue 5.9 0.0 Total operating revenue 223.0 243.2 Other operating income 0.3 0.0 Aviation income 71.2 80.2 Ground handling income 29.3 28.9 Commission from sales of duty free goods 46.6 52.2 Catering services income 21.1 24.0 Other operating revenue 54.9 57.9 Construction expenditure (5.9) 0.0 Operating expenses (176.9) (183.4) Cost of catering inventory sold (9.8) (8.8) Cost of services rendered (13.1) (13.5) Personnel expenses (57.0) (60.7) Concession rent expenses (39.3) (40.4) Depreciation and amortization expense (29.6) (29.3) Other operating expenses (28.1) (30.7) Equity Pick-up (1.7) 2.5 Operating profit 44.8 62.2 Finance income 2.1 3.4 Finance expenses (23.4) (40.6) Profit before income tax 23.5 25.0 Income tax expense (13.7) (19.4) Profit for the period from continuing operations Attributable to: Owners of the Company 11.7 7.2 Non-controlling interest 1.9 1.5

EQUITY AND LIABILITIES (€m) 1Q17 1Q18

EQUITY

Share capital 162.4 162.4

Share premium 220.3 220.3

Legal reserves 112.8 112.3

Other reserves -70.0 -80.8

Revaluation surplus 0.0 0.0

Purchase of shares of entities under common control 40.1 40.1

Cash flow hedge reserve -56.1 -51.5

Translation reserves -30.6 -49.8

Retained earnings / (Accumulated losses) 381.5 458.9

Total equity attributable to equity holders of the Company 760.3 811.8

Non-controlling interest -1.3 -5.5

Total Equity 759.0 806.4

Loans and borrowings 662.4 525.0

Reserve for employee severance indemnity 21.6 23.3

Due to related parties 0.0 0.0

Derivative financial instruments 46.0 35.1

Deferred income 33.3 20.2

Other payables 584.6 533.5

Deferred tax liabilities 17.0 16.2

Total non-current liabilities 1,364.9 1,153.3

Bank overdraft 1.8 -0.0

Loans and borrowings 555.7 581.1

Trade payables 43.6 41.1

Due to related parties 2.6 0.7

Current tax liabilities 15.9 18.5

Other payables 229.6 251.1

Provisions 6.8 6.5

Deferred income 13.8 14.7

Derivative financial instruments 0.0 -0.0

Total current liabilities 869.8 913.6

Total Liabilities 2,234.7 2,067.0

TOTAL EQUITY AND LIABILITIES 2,993.7 2,873.3

ASSETS (€m) 1Q17 1Q18

Property and equipment 219.6 196.7

Intangible assets 13.3 11.8

Airport operation rights 1,688.3 1,605.0

Other investments -0.0 0.0

Goodwill 135.8 136.0

Prepaid concession expenses 38.3 11.0

Trade receivables 89.3 75.9

Other non-current assets 4.3 5.5

Deferred tax assets 35.8 32.4

Equity pick-up assets 78.7 69.2

Total non-current assets 2,303.2 2,143.6 Inventories 8.8 8.9 Prepaid concession expenses 159.0 143.3 Trade receivables 136.5 127.1 Due from related parties 32.0 33.1 Derivative financial instruments 0.0 0.0 Other receivables and current assets 59.7 56.9 Cash and cash equivalents 161.9 202.5 Restricted bank balances 132.7 157.8 Total current assets 690.5 729.7 TOTAL ASSETS 2,993.7 2,873.3

6

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8

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Cash Flow Statement

29

CASH FLOWS FROM OPERATING ACTIVITIES 1Q17 1Q18

Profit for the period 9.8 5.6

Adjustments for:

Amortisation of airport operation right 15.8 15.4

Depreciation of property and equipment 12.6 13.2

Amortisation of intangible assets 1.2 0.6

Concession and rent expenses 39.3 40.4

Provision for employee severance indemnity 0.8 0.9

Provision for doubtful receivables 0.1 0.1

Discount on receivables and payables, net 0.0 0.0

Provision set for unused vacation 0.4 0.9

Interest income -2.1 -3.4

Interest expense on financial liabilities 12.8 11.5

Tax expense 13.7 19.4

Unwinding of discount on concession receivable and payable

5.4 6.8

Share of profit of equity-accounted investees, net of tax 1.7 -2.5

Unrealised foreign exchange differences on statement of financial position items

-1.4 -5.8

Cash flows from operating activities 110.1 103.3

Change in current trade receivables -6.3 2.9

Change in non-current trade receivables 4.1 4.4

Change in inventories 0.0 1.0

Change in due from related parties -11.5 -10.7

Change in restricted bank balances 29.2 25.8

Change in other receivables and assets 2.1 11.3

Change in trade payables -12.5 -5.3

Change in due to related parties -0.2 0.0

Change in other payables and provisions -26.0 -33.5

Cash provided from operations 88.9 99.1

Income taxes paid -18.1 -17.7

Interest paid -2.3 -1.1

Retirement benefits paid -0.9 -1.0

Additions to prepaid concession and rent expenses -134.1 -116.0

Dividends from equity-accounted investees 14.2 15.8

Net cash provided from operating activities -52.4 -21.0

CASH FLOWS FROM INVESTING ACTIVITIES 1Q17 1Q18

Interest received 2.0 4.7

Proceeds from sale of property, equipment and intangible assets

0.5 0.6

Acquisition of property and equipment -3.5 -19.6

Additions to airport operation right -6.2

Acquisition of intangible assets -0.5 -0.9

Net cash used in investing activities -7.7 -15.1

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 11.1 5.2

Repayment of borrowings -41.0 -25.2

Cash inflows and outflows from derivative instruments -0.2

Dividends paid -65.2 -85.4

Interest from employee severance indemnity 0.6 0.6

Change in finance lease liabilities -0.7 -0.6

Net cash used in financing activities -95.1 -105.5

NET INCREASE IN CASH AND CASH EQUIVALENTS -155.3 -141.7

CASH AND CASH EQUIVALENTS AT 1 JANUARY 315.3 344.2

CASH AND CASH EQUIVALENTS AT 31 MARCH 160.1 202.5

6

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8

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Airport Type/Expire TAV Stake Scope 2016 Pax (mppa)

fee/pax Int'l

fee/pax Dom.

Volume Guarantee

Yearly Lease/ Concession Fee Paid

Net Debt (1)

Istanbul Ataturk Lease

100% Terminal 63.7 US$15

€3 No $140m + VAT €32m (January 2021) €2.5 (Transfer)

Ankara Esenboga BOT

100% Terminal 15.8 €15

€2.5 (Transfer) €3

0.6m Dom. , 0.75m Int'l for 2007+5% p.a

- €7m (May 2023)

Izmir A.Menderes (Ege) Concession

100% Terminal 12.8 €15

€2.5 (Transfer) €3 No

€29m+VAT (2)

€213m

(December 2032)

Gazipasa Alanya Lease

100% Airport 0.8 €10(3) TL7.5(3) No $50,000+VAT(4) €49m (May 2034)

Milas Bodrum Concession

(December 2035) 100% Terminal 3.5 €15 €3 No

€143.4m upfront+ €28.7m+VAT (5)

€118m

Tbilisi BOT

80% Airport 3.2 US$24 US$6 No - €-9m (February 2027)

Batumi BOT

76% Airport 0.5 US$12 US$7 No - €-5m (August 2027)

Monastir&Enfidha BOT+Concession

67% Airport 1.7 €9 €1 No 11-26% of revenue from

€355m

(May 2047) 2010 to 2047

Skopje & Ohrid BOT+Concession

100% Airport 2.0 €17.5 in Skopje, €16.2 in Ohrid

- No 4% of the gross annual

turnover (6) €42m

(March 2030)

Medinah BTO+Concession

33% Airport 7.8 SAR 87 (7) - No 54.5% (8) - (2037)

Yanbu, Hail & Qassim(7,9)

BTO+Concession

50% Airport

3.5 SAR 87(7) SAR 10 No

3% of the gross annual turnover for Yanbu

3,6% of the gross annual turnover until 2026, 7,2% between 2026-2047 for

Hail&Qassim

- (2047)

Zagreb BOT+Concession

(April 2042) 15% Airport 3.1

€15

€7 No €2.0 - €11.5m fixed 0.5% (2016) - 61%

(2042) variable -

€4 (Transfer)

Concession Overview

30

1) As of 31 March 2018 2) 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 3) TAV Gazipasa tariff increased on January 1, 2015 4) TAV Gazipasa will make a yearly rent payment of US$ 50,000 + VAT plus 65% of net profit to DHMI. 5) Yearly payments start October 2015. 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 6) The percentage will be tapered towards 2% as passenger numbers increase. 7) SAR 87 from both departing and arriving international pax. Pax charge will be increase as per cumulative CPI in Saudi Arabia every three years 8) The concession charge was reduced to 27.25 % for the first two years that follow the completion of the construction of the new terminal in Q2 2015 9) The aiirports are planned to be taken over by 4Q 2017.

6

235 242 250

8

251 243 223

Airport Type/Expire TAV Stake Scope 2017 Pax (mppa)

fee/pax Int'l

fee/pax Dom.

Volume Guarantee

Yearly Lease/ Concession Fee Paid

Net Debt (1)

TAV became 100% shareholder of BTA

EUR25million impairment of Milas Bodrum (net profit impact of EUR20million, after deferred tax)

Havas Germany operations shut down

Accounting methodology changes

~EUR15m software sales revenue accrued in Q4, mainly from Abu Dhabi and Saudi projects

MoU signed to undertake exclusive negotiations with the Cuban government for Havana Airport

Q4

Timeline

31

2017 2018 2016

TRY 348 million cash dividends paid

Macedonia loan refinanced with one-off cost of ~EUR7m

Q1


Adverse weather conditions in January led to flight cancellations in İstanbul

New terminal building of Zagreb Airport opened at the end of March

Q1


Signed SPA to purchase 49% of Antalya Airport with co-control and equal dividend rights from IC for EUR 360 million

Q1

Istanbul loan refinanced with one-off cost of ~EUR11m (will be net income neutral by year-end)

Tunisia deferred tax asset reversal of ~EUR14m

Ataturk extension complete

Tbilisi runway and taxiway rehabilitation complete

Attack on the airport (June 28), coup attempt (July 15)

Q2

Consortium with TAV invited to exclusive negotiations for Havana Airports, Cuba

Started negotiations with Saudi Oger Ltd. to purchase half of its 33.3% shares of Tibah

Q3

Philippines regional airports tender cancelled

Saudi airports awarded (Yanbu, Qasim and Hail)

New arrival terminal building of Tbilisi Airport opened at the end of June

Q2

Change in shareholder structure

Guidance Revision for 2017

Q3

Q4

Tax Regimes

32

Corporate income tax rate of 25%


Corporate income tax rate of 20% as of 2018 (15% previously)

Corporate income tax rate of 20% for non-residents


Corporate income tax rate of 22% for 2018-2019-2020.(20% previously) %. 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


Turkey

Georgia

Tunisia

Macedonia

Latvia

Saudi Arabia

Croatia

Share Price Performance 1M 3M 2017 to Date

TRY 1% 14% 91%

USD -1% 4% 66%

Relative to BIST -100 10% 26% 38%

Share Performance (April 25, 2018)

ESG & Share Performance

33

Corporate Governance rating has increased to 96.17 (9.62 out of 10) from a rating of 95.38 (9.54 out of 10), owing to our strong emphasis on developing good corporate governance practices. The previous rating was announced on 19.08.2016.

Corporate Governance Rating Weight Grade

Shareholders 25% 95.77

Public Disclosure and Transparency 25% 97.34

Stakeholders 15% 98.82

Board of Directors 35% 94.48

Total 100% 96.17 Closing Price (TRY)

24.22 Market Cap USD 2.2bn

Avg. Daily Volume** USD 8.1m

Free Float* 44%

Effective Free Float* 44%

Foreign Ownership

~90%

* Source: Central Registry Agency (MKK) ** 2018 yearly average

85 129 193

247 166 63

TAV Airports was included in the BIST Sustainability Index on November 4, 2014.

6

235 242 250

8

251 243 223

Sustainability

3,04,05,06,07,08,09,0

10,0

25.

04.2

01

81

3.03

.20

18

30.

01.2

01

81

8.12

.20

17

06.

11.2

01

72

5.09

.20

17

09.

08.2

01

72

8.06

.20

17

12.

05.2

01

73

0.03

.20

17

16.

02.2

01

70

5.01

.20

17

24.

11.2

01

61

3.10

.20

16

25.

08.2

01

61

4.07

.20

16

30.

05.2

01

61

5.04

.20

16

04.

03.2

01

62

2.01

.20

16

10.

12.2

01

52

8.10

.20

15

14.

09.2

01

50

3.08

.20

15

19.

06.2

01

50

7.05

.20

15

24.

03.2

01

51

0.02

.20

15

29.

12.2

01

41

7.11

.20

14

01.

10.2

01

42

0.08

.20

14

04.

07.2

01

42

3.05

.20

14

08.

04.2

01

42

5.02

.20

14

TAVHL ($)

TUNISIA

UAE

QATAR

GEORGIA

TURKEY

OMAN KENYA

SAUDI ARABIA

LATVIA

GERMANY

USA CROATIA

MACEDONIA

Global Presence with Service Companies in 19 Countries and 77 Airports

34

THAILAND

CHILE

INDONESIA

JORDAN

DENMARK

SWITZERLAND

EGYPT

Source: Groupe ADP, TAV Airports * Groupe ADP sold its 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. Since end of December 2016, Groupe ADP manages Antananarivo & Nosy Be airports in Madagascar but Group traffic figures do not include yet in 2016 their traffic figures. ** Passenger numbers are for FY 2017, excluding passenger numbers for Schiphol, Riga Airports and Yanbu, Hail and Qassim Airports in Saudi Arabia. This calculation takes into account Paris Aéroport and TAV Airports’ figures at 100% for 2017 and, for minority stakes, it takes into account the trafffic weighted by stake of ownership. 35

A Platform of 23 airports* and 228 million passengers**

FRANCE Paris-CDG: 69.5mn pax Paris-Orly: 32.0mn pax Owner and operator

Schiphol Group (8%) 68.5mn pax Industrial cooperation

Liège (25.6%) Strategic partner Croatia (TAV 15% ADPM

21%) Zagreb Airport:3.1mn pax Concession operator

Turkey Istanbul Ataturk: 63.7mn pax Ankara: 15.8mn pax Izmir: 12.8mn pax Mlas-Bodrum: 3.5mn pax Gazipasa: 0.8mn Concession operator

Amman – Jordan (9.5%) 7.9 mn pax Management contract Strategic partner

Medinah (Saudi Arabia) (33%) 7.8mn pax

Concession operator

Tunisia (67%) Enfidha & Monastir 1.7mn pax Concession operator

Jeddah (Hajj Terminal) – Saudi Arabia

8.0mn pax Management contract

Mauritius (10%) 3.7mn pax Operator Strategic partner

Conakry Airport (29%) 0.5mn pax Operator

Santiago de Chile (45%) 21.4mn pax Concession

ADP TAV Airports

Groupe ADP – TAV Airports: A Global Footprint

Macedonia (100%) Skopje & Ohrid: 2.0 mn pax

Concession operator

Georgia Tbilisi(80%) & Batumi(76%): 3.7 mn pax Concession operator

Madagascar (35%) (Since December 2016)

1.1mn pax Concession Operator

Major Airports in Turkey

36

Istanbul / Ataturk Airport Tender Date: 2005 Type: Lease Expire: 2021

63,7 m Intl: 44,3 m

Dom: 19,5 m

Ankara / Esenboga Airport Tender Date: 2006 Type: BOT Expire: 2023

15,8 m Intl: 2,0 m

Dom: 13,9 m

İzmir / A.Menderes Airport Tender Date: 2011* Type: Lease Expire: 2032

12,8 m Intl: 2,4 m

Dom: 10,5 m

Milas-Bodrum Airport Tender Date: 2014* Type: Lease Expire: October 22,2035

3,5 m Intl: 0,9 m

Dom: 2,6 m Mugla / Dalaman Airport

Tender Date: 2014 Type: BOT+Lease Expire: 2039

3,7 m Intl: 2,3 m

Dom: 1,4 m

Antalya Airport Tender Date: 2007 Type: Lease Expire: 2024

25,9 m Intl: 18,5 m Dom: 7,5 m

Gaziantep Airport 2,9 m Intl: 0,3 m

Dom: 2,6 m

Adana Airport 5,6 m Intl: 0,6 m

Dom: 5,0 m

Kapadokya Airport 0,1 m Intl: 0 m

Dom: 0,1 m

Trabzon Airport 4,2 m Intl: 0,2 m

Dom: 4,0 m

Samsun Airport 1,2 m Intl: 0,0 m

Dom: 1,1 m

GazipasaAirport Tender Date: 2007 Type: Lease Expire: 2034

0,8 m Intl: 0,3 m

Dom: 0,5 m

* International terminal to be taken over October 2015 ** Pax numbers are for 2017.

Operated by TAV Airports

Not privatized

Operated by others

230 231 232

İstanbul / Sabiha Gokcen Airport

Tender Date: 2007 Type: BOT Expire: 2032

31,4 m Intl:10,3 m

Dom: 21,1 m

New Airport

Sabiha Gokcen

Ataturk Int.

Airport

3rd Bridge

Macro Outlook

37

Country Subject Descriptor Units Scale 2015 2016 2017 2018 2019 2020 2021 2022 Gross domestic product, constant prices % Ch. 2.2 3.0 2.9 2.7 2.5 2.3 2.2 2.1

Croatia

Gross domestic product, current prices USD Billions 48.9 50.7 53.5 57.9 60.4 62.9 65.1 68.9 Gross domestic product per capita, current prices USD Thousands 11.6 12.2 12.9 14.0 14.6 15.2 15.8 16.7 Inflation, average consumer prices % Ch. -0.5 -1.1 1.1 1.2 1.5 1.7 1.8 1.9 Population Persons Millions 4.2 4.2 4.2 4.1 4.1 4.1 4.1 4.1 Gross domestic product, constant prices % Ch. 2.9 2.7 4.0 4.2 4.5 5.0 5.5 5.5

Georgia

Gross domestic product, current prices USD Billions 14.0 14.3 15.2 16.7 18.0 19.5 21.2 23.0 Gross domestic product per capita, current prices USD Thousands 3.8 3.9 4.1 4.5 4.9 5.3 5.7 6.3 Inflation, average consumer prices % Ch. 4.0 2.1 6.0 3.0 3.2 3.0 3.0 3.0 Population Persons Millions 3.7 3.7 3.7 3.7 3.7 3.7 3.7 3.7 Gross domestic product, constant prices % Ch. 2.7 2.0 3.8 3.9 3.5 3.2 3.1 3.0

Latvia


FYR Macedonia

Gross domestic product, current prices USD Billions 10.1 10.9 11.4 12.3 13.0 13.8 14.5 15.4 Gross domestic product per capita, current prices USD Thousands 4.9 5.3 5.5 5.9 6.3 6.6 7.0 7.4 Inflation, average consumer prices % Ch. -0.3 -0.2 0.3 2.6 1.9 2.0 2.0 2.0 Population Persons Millions 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 Gross domestic product, constant prices % Ch. 4.1 1.7 0.1 1.1 1.6 1.8 2.0 2.0

Saudi Arabia

Gross domestic product, current prices USD Billions 654.3 646.4 678.5 708.5 733.1 761.0 793.3 813.7 Gross domestic product per capita, current prices USD Thousands 21.1 20.4 21.0 21.5 21.8 22.1 22.6 22.8 Inflation, average consumer prices % Ch. 2.2 3.5 -0.2 5.0 2.0 2.2 2.1 2.0 Population Persons Millions 31.0 31.7 32.4 33.0 33.7 34.4 35.0 35.7 Gross domestic product, constant prices % Ch. 1.1 1.0 2.3 3.0 3.5 4.1 4.3 4.3

Tunisia


Turkey

Gross domestic product, current prices USD Billions 859.4 863.4 841.2 905.7 962.2 1018.9 1074.9 1132.2 Gross domestic product per capita, current prices USD Thousands 10.9 10.8 10.4 11.1 11.7 12.3 12.8 13.4 Inflation, average consumer prices % Ch. 7.7 7.8 10.9 9.3 8.8 7.9 7.5 7.5 Population Persons Millions 78.7 79.8 80.6 81.4 82.2 83.0 83.7 84.4

IMF, World Economic Outlook Database, October 2017

228 238 248

10

242 247 252

9

Contact IR

38

IR Team About TAV Airports

Nursel İLGEN, CFA Director, Head of Investor Relations [email protected] Tel :+90 212 463 3000 / 2122 Fax : +90 212 465 3100

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

Ali Ozgu CANERİ Investor Relations Coordinator [email protected] Tel :+90 212 463 3000 / 2124 Fax : +90 212 465 3100

IR Website http://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

Turkey

Georgia

Tunisia

Macedonia

Saudi Arabia

Latvia

Croatia

Istanbul Ataturk Ankara Esenboga Izmir Adnan Menderes

Gazipasa Alanya Milas Bodrum

Tbilisi and Batumi

Monastir and Enfidha

Skopje and Ohrid

Medinah Yanbu, Hail & Qassim*

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 2017, the company provided services for 836K flights and more than 115 million passengers. The Company’s shares are listed in Borsa Istanbul since February 23, 2007, under the ticker code “TAVHL”

* The airports are planned to be taken over by year-end

mailto:[email protected]

http://ir.tav.aero/

mailto:[email protected]

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

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

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 27, 2018.

39

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