tav presentation fy08 30march09 · 5 developments in 2008 january february march april may june...
TRANSCRIPT
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TAV Airports HoldingFY 2008 Financial Results
30 March 2009
1
Page
8TAV Airports – Financial Overview
15TAV Airports – Operations
1TAV Airports – Overview
2
TAV Airports Overview
O&M, IT and SecurityTAV O&M (100%):
Commercial areaallocationsCIP / VIP
TAV IT (97%): Airport IT services
TAV Security(67%):
Security service provider in Istanbul, Ankara and Izmir
Airports Duty Free Food and Beverage
Ground Handling Other
TurkeyIstanbul Ataturk Airport (100%),
Ankara Esenboğa Airport (100%),
Izmir Adnan Menderes Airport (Intl. Terminal) (100%),
Gazipasa Airport (1)
(100%)
GeorgiaTbilisi International Airport(66%) and Batumi Airport
TunisiaMonastir and Enfidha Airports (2) (100%)
MacedoniaSkopje, Ohrid and Shtip Airports (3) (100%)
ATÜ (50%)Largest duty free operator in Turkey
Partner with Unifree– leading German travel retailer (Travel Value)
BTA (67%)Total seating capacity of 10,500 in Turkey andGeorgiaOperates Istanbul Airport Hotel (85 rooms)
Bakery & pastry factory serving in Turkey
€377m
Rev
enue
s20
08(5
)
€151m €55m€58mNotes: (1) We had signed Gazipasa Airport concession agreement on January 7, 2008 and we have not started operations yet.
(2) We started operations in Monastir Airport on January 1, 2008. Enfidha Airport is under construction (greenfield investment)(3) We are awarded the tender on September 2, 2008 and we have not started operations yet.(4) Based on number of flights for 2008(5) Revenues represent the proportional interest of these companies in TAV Airports (e.g. 50% of ATÜ revenues, 60% of TAV Georgia for whole period) (before eliminations)
Havaş (100%)Traffic, ramp and cargo handling
Majorgroundhandler in Turkey with a c.52%(4) share
Operates in 18airports in Turkey including Istanbul, Ankara, Izmir and Antalya
€121m
3
Ownership Structure
Founding shareholders
1. Tepe – Turkish integrated conglomerate focused on infrastructure and construction
2. Akfen – holding company operating in the construction, tourism, foreign trade, insurance and natural gas sector
3. Sera Yapi Endustrisi – family of Dr. Sani Sener, CEO of TAV Airports
4. Goldman Sachs International *5. Babcock & Brown – infrastructure fund6. Other Non-floated7. Free Float (38.37%)
a) Global Investment House – a Kuwait based fund (4.84%)
b) Airports International (10.1%)c) IDB Infrastructure Fund (3.62%) d) Other Free Float (19.81%)
Shareholder Structure
Other shareholders
* 52,312,500 of the shares owned by Goldman Sachs that correspond to 14.4% of our issuedand outstanding share capital have been provided by Tepe, Akfen Holding and Sera toGoldman Sachs as collateral and the title of those shares have been transferred to GoldmanSachs for this purpose. A pledge granted by Goldman Sachs in favour of Tepe, Akfen Holding and Sera exists on those shares. As a result, the voting rights, right of receiving dividends, pre-emption rights for participating in cash share capital increase in connection with those (exceptfor acquiring gratis shares under any share capital increase) belong to Tepe, Akfen Holding and Sera.
18,86%
16,03%
2,83%
14,40%2,30%7,21%
4,84%
10,10%
3,62%
19,81%
7-d 1
2
3
4(*)56
7-c
7-b
7-a
4
Developments in 2008
January
February
March
April
May
June
July
August
September November
October December
1 January 2008 - We started operating the Monastir Airport in Tunisia
7 January 2008 – Antalya-Gazipasa Airport concession agreement is signed.
10 March 2008 – TAV Istanbul signed the refinancing agreement
25 April 2008 – TAV Tunisie signed a project financing agreement
30 May 2008 – We have been awarded the PQ for the tender of airports in Macedonia.
2008
30 July 2008 – TAV has submitted a prequalification application for the tender of SJSC Riga International Airport.
5
Developments in 2008
January
February
March
April
May
June
July
August
September November
October December
2 September 2008 – TAV was awarded the tender in Macedonia.
24 September 2008 – The concession agreement for three airports in Macedonia has been signed
31 Ocober 2008 – The ownership stake of TAV Airports Holding in TAV Urban Georgia LLC has increased from 60% to 66%
4 November 2008 – Ataturk Airport expansion project has been signed between TAV Istanbul and State Airport Authority (DHMI)
2008
19 December 2008 – Turkish Airlines declared that HAVAS has been elected as a 50% partner for the TGS Ground Handling Services Inc.
6
Developments in 2009
January
February
March
April
May
June
July
August
September November
October December
26 January 2009 – The consortium by TAV Airports and Skonto Buve LTD bid for the SJSC Riga International Airport tender in Latvia
2009
30 January - 13 February 2009 – The shareholders exercised their pre-emptive rights stemming from the 50% rights issue for 15 days
02 March 2009 – The consortium by TAV Airports and Skonto Buve LTD has been elected for the partnership with the SJSC Riga International Airport Management.
7
Traffic Performance
TAV Passenger Figures (million pax)
1%13.214%13.111.512.411.1Izmir A.Mend. (int’l)
6%8%7%
28%-2%
4%9%6%6%9%8%%
139.0216.0355.013.934.6
36.413.750.1
100.9142.5243.42007
83.2171.2254.410.027.9
23.310.633.959.2
112.3171.52004
110.7188.0298.711.231.1
29.110.739.880.8
123.4204.22005
139.7229.1368.816.433.6
38.912.251.199.1
155.4254.52008
4%330.4TAV Total 6%199.3Int’l
2%47.4Ankara Esenboga-11%12.5Int’l
7%34.9Dom.
-3%35.2Monastir Airport18%10.8Georgia (inc. Batumi)
-2%95.0Dom.9%130.5Int’l5%225.5Istanbul Ataturk
0%131.1Dom.
%2006Airports
Source: Turkish State Airports Authority (DHMI), Georgian Civil Aviation Authority, TAV Tunisie
TAV Air Traffic Movements (‘000)
-1%4.21%4.24.24.13.7Monastir Airport
7%9%8%
16%
10%10%7%9%6%
12%9%%
13.221.434.6
0.7
1.63.61.35.09.6
13.623.22007
7.616.924.5
0.4
1.52.21.13.35.4
10.215.62004
10.119.329.4
0.5
1.72.61.23.87.5
11.819.32005
13.722.235.9
0.8
1.74.41.25.79.2
14.323.52008
4%32.0TAV Total 4%19.6Int’l
15%4.5Ankara Esenboga-8%1.2Int’l23%3.3Dom.6%1.5Izmir A.Mend. (int’l)
21%0.6Georgia (inc. Batumi)
-4%9.1Dom.5%12.2Int’l1%21.3Istanbul Ataturk
4%12.4Dom.
%2006AirportsIn 2008 (January-December period)
Passenger:35.9 million total passenger, 4% growth (14.3 million int’l passenger in Istanbul Ataturk Airport, 5% growth)
Total int’l passenger traffic grew 4%
4% growth in domestic passenger traffic
Air Traffic Movement:369 thousand ATM, 4% growth
Int’l ATM grew 6%
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Page
8TAV Airports – Financial Overview
15TAV Airports – Operations
1TAV Airports – Overview
9
Operational Performance
19%16%(9%)n.m.78%n.m.n.m.
-41%
-129%25%
∆ y-o-y
-------
47.3%296.822.4%140.8627.3
2008 **
9,473678.4322.5
(106.9)120.313.4
(43.8)39.5%189.310.1%48.5
479.0
2007
-------
42.9%217.815.2%77.0
507.5
2007 **
-11,223Average number of employees-785.0Net Debt-294.0Shareholders’ Equity-11.7Free Cash Flow-214.6Capex-226.3Cash flow from operations-4.7Net Income (Loss)-44.7%EBITDAR margin
36%267.2EBITDAR-18.6%EBITDA margin
83%111.2EBITDA24%597.7Revenues
∆ ∆ y-o-y2008(in million €)*
€4.7 million net profit for the year ended December 31, 2008.
Cash flow from operating activities reached €226 million during the period, the highest level in the company’s history.
(*) Construction revenue and construction expenditure are excluded while computing the operational performance in the table.
(**) Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
10
Operational Performance
Continuing revenue growth:Consolidated adjusted revenue increased by 24% to €627 million (IFRS: €598 million) in 2008
Improving operational performance:Adjusted EBITDAR increased by 36% to €297 million, implying 47.3% margin
Swinging to a net profit:Reported €4.7 million net profit in 2008, compared to €43.8 million net loss in 2007
EBITDAR (€m)
Consolidated Revenue (€m)
2007 2008 2007 * 2008 *
598 627y-o-y +24%
479
2007 2008 2007 * 2008 *
34
218
297y-o-y +36%267
189
Net Income (Loss) (€m)
4.7
-43,8
2007
2008
508
y-o-y +25%
* Adjusted by including guaranteed pax fee revenues
y-o-y +41%
* Adjusted by including guaranteed pax fee revenues
11
Revenue Profile
TAV Airports Revenues
Total consolidated revenues increased by 25% to € 598 million in 2008.
Including guaranteed passenger fee revenues from airports in Ankara and Izmir, adjusted revenues increasedby 24% to €627 million in 2008.
25%
22%8%
63%15%
9%23%
108%7%22%
Change
66%115708641Others7%262244262244Istanbul20%377314347285Airports
15%58505850BTA9%151138151138ATU (50%)23%384313384313Services
24%627508598479Consolidated-134-119-134-119Eliminations
21%761627732598Total8%54505450Others
63%1217412174Havas (60%)(*)
Change2008 **2007 **20082007(€ million)
(*) Fully consolidated for 4Q07 and 2008 while 60% proportionally consolidated before(**) Adjusted by including guaranteed pax fee revenues from airports in Ankara and Izmir
12
EBITDAR Build-up
Adjusted revenues increased by 24% to € 627million (IFRS:€ 598 million) in 2008
Aviation operations (including ground handling), account for 42% of total operating income and non-aviation operations account for 58% of total operating income in 2008.
Operating expenses increased by 13% to €521million in 2008
Adjusted EBITDA: reached €141 million in 2008, which was €77 million in 2007.
Concession rent expenses increased by 11%to €156 million in 2008, due to the concessionpayment for Monastir Airport
Adjusted EBITDAR rose by 36% to €297million in 2008, implying 47.3% margin.
Rev
enue
s
Ope
x
EBIT
D&
A
Con
c. e
xp.
EBIT
DA
R
Non
-avi
atio
nA
viat
ion
265
362
521
10635
156 297
2008 EBITDAR Build-up (€m)
Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
13
EBITDAR Profile
TAV Airports EBITDAR (*)
Adjusted EBITDAR rose by 36% to €297 million in 2008, implying 47% margin.
Istanbul has a good like-for-like EBITDAR track record
41%
43%n.m.
137%n.m.57%n.m.n.m.7%30%
Change
n.m.602030-8Others7%192180192180Istanbul26%252200222171Airports
n.m.3030BTA57%149149ATU (50%)n.m.44144414Services
36%297218267189Consolidated1414Eliminations
38%295214266185Totaln.m.-2-7-2-7Others
137%28122812Havas (60%)(**)
Change2008 **2007 **20082007(€ million)
(*) EBITDAR figures for Istanbul and Tunisie include concession rent expense(**) Fully consolidated for 4Q07 and 2008 while 60% proportionally consolidated before
14
2008 Financial Summary
TAV Airports Consolidated– 2008
(*) EBITDAR figure is used for Istanbul and Tunisie(**) Fully consolidated for 4Q07 and 2008 while 60% proportionally consolidated before
13469%2942Tunisie0-00Batumi
2132%310Tbilisi (60%)
2-134Eliminations78539%295761Total197--255Others
11935%1234Ankara6554%1630Izmir
3-00Gazipasa
22973%192262Istanbul57167%252377Airports
16%458BTA209%14151ATU (50%)
21411%44385Services
78547%297627Consolidated
-423%28121Havas (**)
Net DebtEBITDAR(*) MarginEBITDAR(*)Revenues(€ million)
Note: Figures below are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir
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Page
8TAV Airports – Financial Overview
15TAV Airports – Operations
1TAV Airports – Overview
16
Istanbul Atatürk Airport (100% owned)
Largest in the region
Main hub and home base for Turkish Airlines
Fastest growing airport in Europe
5% YoY int’l passenger volume growth in 2008
Revenue of €262 million in 2008, up 7%
€192 million EBITDAR in 2008, implies 7% growthand 73% margin
Revenue (€m)
THY (58%) Atlas Jet (16%)
Onur Air (23%) Others (3%)
Domestic International
THY (%47) Atlas Jet (2%)
Luf thansa (4%) Onur Air (2%)
KTHY (2%) Others (43%)Source: DHMİ
Passengers per airline (2007)
Source: DHMI, Terminal passenger figures exclude transit passengers
23.523.221.3
19.315.612.1
2003 2004 2005 2006 2007 2008
International Domestic
14% CAGR 2003-08
0
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008
12% CAGR 2003-08y-o-y +7%
y-o-y +1%
Passenger traffic 2003-2008 (m)
17
Ankara Esenboga Airport (100% owned)
Newest in the region
Secondary hub of Turkish Airlines (THY)
THY’s Ankara based brand Anadolu Jet began to fly in May 2008.
Operations commenced in October 16, 2006.
Revenue (€m)Passengers per airline (2007)
Passenger traffic 2003-2008 (m)
THY (64%)Pegasus (15%)Lufthansa (3%)Onur Air (2%)KTHY (2%)Atlas Jet (5%)Others (9%)
Source: DHMI
+15%CAGR
5.75.0
4.53.83.32.8
2003
2004
2005
2006
2007
2008
International Domestic
y-o-y 15%
Source: DHMI
18
Izmir Adnan Menderes Airport (100% owned)
Third largest city with the second biggest port in Turkey
Major tourist destination
Operations commenced in September 13, 2006.
Diversified customer base
Revenue (€m)Passengers per airline (2007)
Passenger traffic 2003-2008 (m) (*)
Source: DHMI
Sun Express (30%)Onur Air (12%)Atlas Jet (3%)Pegasus (9%)Lufthansa (7%)KTHY (6%)THY (3%)Others (30%)
1.71.61.51.7
1.51.4
2003
2004
2005
2006
2007
2008
y-o-y +6%
Source: DHMI(*) International passengers only
19
Tbilisi International Airport (66% owned)
Operations in new terminal commenced in February 7, 2007.
Capturing 98% of all air traffic in Georgia
Capital city of Georgia with promising business opportunities
Capacity: 2.8 million passengers per year
Revenue (€m)Passengers per airline (1H08)
Passenger traffic 2003-2008 (‘000)
Georgian Airways (31%)
THY (17%)
Lufthansa (9%)
Azal (7%)
Austrian Airlines (5%)
Air Baltic (4%)
Others (27%)Source: Georgian Civil Aviation Authority
318402
547 567 616
2003
2004
2005
2006
2007
2008
International Domestic
y-o-y +16%
Source: Georgian Civil Aviation Authority
+18%CAGR
715
20
Batumi International Airport (60% owned)
Operations in the terminal commenced in May 26, 2007.
Second biggest city of Georgia with strategic importance
Revenue (€m)Passengers per airline (1Q08)
Passenger traffic 2007-2008 (‘000)
81
40
2007
2008
International Domestic
Source: Georgian Civil Aviation Authority
Georgian Airways (14%)
THY (69%)
JSC TAM AIR (16%)
South Airlines (1%)
Source: Georgian Civil Aviation Authority
21
Monastir International Airport (100% owned)
4.24.24.24.13.72.8
2003
2004
2005
2006
2007
2008
International + Domestic
TAV started to operate in January 1, 2008
Tunisia have potential to be the hub of Africa in near future
Capturing 39% of all air traffic in Tunisia, mainly tourists using charters
90% of travelers (6 million in 2007) visiting Tunisia prefered air transportation
New terminal building construction in Enfidha will be completed by October 2009
Revenue (€m)Passengers per airline (1H08)
Passenger traffic 2003-2008 (m)
Source: TAV Tunisie
y-o-y -1%
Tunis Air (26%)
Nouvelair Tunusia (22%)
Karthago Airlines (6%)
Air Berlin (5%)
Others (41%)
Source: TAV Tunisie
+8%CAGR
22
ATU Duty Free (50% owned)
ATU is the sole duty free operator at Istanbul Ataturk, Ankara, Izmir, Tbilisi and BatumiCompetitive concession fee (~43%) paid to TAV for ATÜ-operated shops in Ataturk AirportSpending per pax increased from €14.8 in 2007 to€15.4 in 2008, mainly because of new layout of duty free area at Istanbul Ataturk Airport. Spending per pax increased to €13.4 (2007: €11.6) in Ankara EsenbogaATÜ also pursues tenders outside TAV operations
Spend per pax (€)*
Note: Figures imply 100% of ATU
Revenue (€m)
Financial Data
14.86.4%17.6
277.02007*
57%27.67.6EBITDA9%302.8217.2Total Revenues
4%15.416.0Spend per pax (€) -9.1%3.5%EBITDA Margin
Change2008*2006(€ m)
14.814.814.816.0 15.4
14.3
2003 2004 2005 2006 2007 20082003 2004 2005 2006 2007 2008
188217
277
y-o-y +9%
166142
* 2007 and 2008 duty-free spend per pax includes Istanbul, Ankara & Izmir; whileprevious periods indicate Istanbul only
303
* 2007 and 2008 duty-free spend per pax includes Istanbul, Ankara & Izmir; whileprevious periods indicate Istanbul only
23
BTA Catering Services (67% owned)
BTA is the food and beverage operator at Istanbul Ataturk (Int’l), Ankara, Izmir, Tbilisi and BatumiTotal revenue increased by 15% in 2008, reflectingthe increase in per pax spend and improvement of Cakes&Bakes operations.Concession fees: BTA pays c40% of its revenues to TAVSpend per pax increased from €1.8 in 2007 to €2.0in 2008. BTA is in negotiations to provide in-flight catering operations within the local market
Spend per pax (€)*
1.8
n.m.-0.250.3
2007*
n.m.3.53.0EBITDA15%58.135.0Total Revenues
14%2.02.4Spend per pax (€)
-6.0%8.6%EBITDA Margin
Change2008*2006(€ m)
2003 2004 2005 2006 2007 2008
2003 2004 2005 2006 2007 2008
29.435.0
50.3
y-o-y +15%
1.82.4
1.9
Note: Figures imply 100% of BTA
* 2007 and 2008 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only
21.114.9
1.31.6
Revenue (€m)
Financial Data
58.12.0
* 2007 and 2008 food & beverage spend per pax includes Istanbul, Ankara & Izmir; while previous periods indicate Istanbul only
24
Havaş Ground Handling (100% owned)(*)
122.7
58.5
139.3
2005 2006 2007 2008
Total revenue of Havas increased by 12% in 2008, with 15% YoY growth in ground handling revenues.
Currently operating at 18 airports in Turkey
Formed strategic partnership with Cyprus TurkishAirlines (KTHY) to undertake ground handlingoperations in Nothern Cyprus (Ercan Airport)
Havaş has been elected by THY as a 50% partner for the TGS Ground Handling Services Inc.
Revenue (€m) # Aircrafts handled (‘000)
Financial Data
139.3
18.7%20.3
108.12007
39%28.111.1EBITDA12%120.699.5Total Revenues
14%158.6122.7# Aircrafts handled (‘000)
-23.3%11.2%EBITDA Margin
Change20082006(€ m)
2005 2006 2007 2008
84.199.5
y-o-y +12%
Note: Figures imply 100% of HAVAS
108.1
y-o-y +14%
158.6
* TAV increased its stake in Havaş to 100% in Nov 2007.
120.6
25
Other Services
Other services income mainly contains incomesfrom maintenance, CIP lounge services, securityservices and software sales.
TAV O&M (100%), incorporated in 2004
Commercial area allocations and maintenance
CIP / VIP
TAV IT (97%), become a separate entity in 2005
Airport IT services, software and hardware sales
TAV Security (67%), became a separate entity in 2006
Security service provider in Istanbul, Ankara and Izmir
Revenue Breakdown (2008)
Note: All periods include TAV Holding, TAV O&M, TAV IT and TAV Security
17.3%6.7
38.82006
n.m.-6.650.32007
n.m.-1.7EBITDA8%54.5Total Revenues
-n.m.EBITDA Margin
Change2008(€ m)
2006 2007 2008
38.8
y-o-y +8%
50.3
Revenue (€m)
54.5
Financial Data
TAV O&M44%
TAV Holding
30%
TAV IT14%
TAV Security
12%
26
Appendix
Consolidated Income Statement
Cash Flow Hedge Accounting
Consolidated Balance Sheet
IFRIC 12
Concession Overview
Consolidated Cash Flow Statement
Historic Overview
Share Performance
27
Share Performance (as of March 30, 2009)
Market Performance
15%-1%10%YTD
12%-3%8%3M
-42%-70%-64%Since IPO
-6%-7%-5%Weekly
Share Price Performance
-6%2%0%1M
Relative toISE-100USDTL
Avg. Daily Volume US$ 3.2 mn (last 3 months)
Free Float 38.37%
Foreign ownership 80.7% of free float
Closing Price TL 2.80 (US$ 1.65) per share
Market Cap US$ 600 mn
Notes: Share figures in this page was prepared as of 30 March 2009.
0
12
34
56
78
30-0
3-09
16-0
2-09
05-0
1-09
17-1
1-08
03-1
0-08
19-0
8-08
08-0
7-08
27-0
5-08
11-0
4-08
29-0
2-08
18-0
1-08
04-1
2-07
22-1
0-07
07-0
9-07
26-0
7-07
14-0
6-07
03-0
5-07
21-0
3-07
Relative
0,30,40,50,60,70,80,91,01,11,21,31,4 Price ($)
TAVHL ($) Relative to ISE
5
10
15
20
25
30
35
30.0
3.09
16.0
2.09
05.0
1.09
17.1
1.08
03.1
0.08
19.0
8.08
08.0
7.08
27.0
5.08
11.0
4.08
29.0
2.08
18.0
1.08
04.1
2.07
22.1
0.07
07.0
9.07
26.0
7.07
14.0
6.07
03.0
5.07
21.0
3.07
Volume ($m)
0
12
3
4
56
7
8 Price ($)
28
Concession Overview
(*) As of 31 December 2008
Type / expire Scope Concession fee Net Debt (*)2008
Pax (mppa)Fee/paxIntern’l
Fee/paxdomesticAirport
Concession(2021) Intl + dom $169m/yr €229m23.5 US$15 €3Istanbul
Ataturk
BOT(2023) Intl + dom - €119m5.7 €15 €3Ankara
Esenboga
BOT(2015) Intl - €65m1.7 €15 -Izmir A
Menderes
BOT(2027) Intl + dom - €21m0.71 US$22
(+ 2% p.a.) US$6Tbilisi
Volume guarantee
No
0.6m Dom.0.75 Int’l for 2007 + 5%
p.a.
1.0m Int’l for 2006 + 3%
p.a.
No
TAV stake
100%
100%
100%
66%
BOT + concession
(2047)Intl + dom
11-26% of revenuesfrom2010 to 2047
€134m4.2 €8.25 in 2008€9 in 2009
€8.25 in 2008€9 in 2009
Monastir&
EnfidhaNo100%
BOT(2027) Intl + dom - -0.08 US$12 US$7Batumi No60%
29
Historic Overview
1997 1998 2000 2003 200620022001
January 2000ATÜ began operationsInternational terminal building completed c.8 months ahead of schedule
June 2000Concession agreement extended through to 2nd July 2005 in return for a 30% enlargement of the int’l terminal
1999 20052004
Established under the name of Tepe AkfenVie Yatirim Yapim veIsletme A.S.TAV successfully tendered for BOT project for Istanbul Atatürk Airport(Concession deadline May 7, 2004)
May 2004BTA started operating the Istanbul International Airport Hotel
August 2004Executed the BOT agreement for Ankara Esenboğa International Airport (right to operate through mid-2023)
September 2004TAV O&M incorporated
June 2005TAV won the tender for Ataturk Airport tooperate for 15.5 years (through 2nd Jan 2021)
July 2005TAV acquired 60% of Havaş sharesTAV obtained control of the BOT for Izmir AdnanMenderes Airport (right to operate through Jan 2015) through the acquisition of Havaş
August 2005TAV IT became a separate entity
September 2005TAV Urban Georgia LLC won the BOT tender for the Tbilisi Airport (10.5 years operating contract) with a 9.5-year extension granted in return for the re-development of the Batumi Airport
March 2006TAV Security became a separate entity
August 2006Name changed to TAV HavalimanlariHolding A.S.
September 2006Completed the construction of Izmir Adnan Menderes Airport’s international terminal
October 2006Ankara Esenboğa’s new domestic and international terminals completedBTA was founded
2007
February 2007IPO: TAV Havalimanlari Holding offered 44.56 million of its shares to public
March 2007TAV won the tender to operate Monastir and EnfidhaAirports in Tunisia for 40 years
May 2007TAV started to operate Batumi Airport
July 2007TAV acquired remaining 25% of TAV Esenboga and5% of TAV Izmir
August 2007TAV is awarded the tender of Antalya-GazipasaAirport
November 2007TAV increased its stake in Havaş to 100% from 60%
2008
January 2008TAV started operating Monastir Airport
March 2008TAV Istanbul refinancing
April 2008TAV Tunisie signed project financing agreement
September 2008TAV is awarded the tender for Macedonian Airport Infrastructure Development
30
IFRIC 12
IFRIC 12 is a new application regarding to interpretation of most of existing standards in the IFRS for example, IAS 11-Construction Contracts, IAS 16-Property Plant and equipment, IAS 17-Leases, IAS 36-Impairment of Assets and IAS 38-Intangible Assets.
IFRIC 12 Service Concession Arrangements was developed by the International Financial Reporting Interpretations Committee. Effective date of the application is 1 January 2008.
TAV Airports adopted IFRIC 12 in the consolidated financial statements for the first time as of 31 March 2008 retrospectively.
IFRIC 12 affects P&L in terms of the decrease in aviation income (for the guaranteed passenger fees) and depreciation expenses while the increase in financial income in accordance with such interpretation. “BOT assets” are classified as “airport operation right” and “trade receivable” in the consolidated financial statements.
It means the operator (TAV Airports) should account these investments as cost and book construction revenue (if a mark-up on costs) on its financials instead of investments according to the completion of infrastructure troughtout the construction periods. Mark-up rates for TAV İzmir, TAV Esenboğa, TAV Tbilisi and TAV Tunisia, which are in the application of IFRIC 12 are assessed by the management as 0%, 0%, 15% and 5% during the application periods, respectively.
The remaining discounted guaranteed passenger fee to be received from DHMİ according to the agreements made for the operations of Ankara Esenboğa Airport and İzmir Adnan Menderes Airport is represented as guaranteed passenger fee receivable in the balance sheet as a result of IFRIC 12 application.
31
IFRIC 12
RemovedBuild-operate-transfer (“BOT”) Investment
IncreaseTrade receivables AddedAirport operation right
The effect of adoption of IFRIC 12
Balance Sheet (Assets)
Income Statement
Decrease (guaranteed pax fees)Aviation income
AddedDiscount interest income
DecreaseDepreciation and amortisation expense (-)
AddedConstruction expenditure (-)AddedConstruction revenue
32
Cash Flow Hedge Accounting
Subsidiaries, TAV İstanbul, TAV Esenboğa and TAV İzmir enter into swap transactions in order to diminish exposure to foreign currency mismatch relating to DHMI instalments and interest rate risk to manage exposure to the floating interest rates relating to loans used.
100%, 100%, 80% and 100% of floating bank loans for TAV İstanbul, TAV Tunisie, TAV İzmir and TAV Esenboğa, 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.
180,713-Total831,833-Other
3,434,629-TRY(4,085,749)-USD
31 December 2007
1,591,55833,310,535Total2,531,786-Other4,212,636-TRY
(5,152,864)33,310,535USD31 December 2008
Profit or lossEquity
Sensitivity Analysis
A 10 percent strengthening of the EUR against the following currencies at 31 December 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. The analysis is performed on the same basis for 2007.
Based on the Group’s current borrowing profile, a 50 basis points increase in Euribor or Libor would have resulted in additional annual interest expense of approximately EUR 1 million on the Group’s variable rate debt when ignoring effect of derivative financial instruments. EUR 0.6 million of the exposure is hedgedthrough IRS contracts. Therefore, the net exposure on income statement would be EUR 0.4 million. A 50 basis points increase in Euribor or Libor would have resulted a decrease in hedging reserve in equity approximately by EUR 21 million.
33
Consolidated Income Statement
(0.1821)0.0193Income / (loss) per share – basic 240,717,076242,187,500Weighted average number of shares outstanding
(43,836,419)4,667,741Profit / (loss) for the period(121,940)608,919Minority interest
(43,714,479)4,058,822Equity holders of the Company
Attributable to:(43,836,419)4,667,741Profit / (loss) for the period
4,745,4453,434,844Income tax benefit (48,581,864)1,232,897Profit / (loss) before income tax(67,973,470)(84,580,204)Net finance expense(84,851,337)(103,010,045)Finance expenses
16,877,86718,429,841Finance income19,391,60685,813,101Operating profit
(86,914,049)(75,755,017)Other operating expenses(30,103,199)(34,891,411)Depreciation and amortisation expenses
(140,789,005)(155,950,811)Concession rent expenses(113,294,400)(145,902,809)Personnel expenses
(22,578,695)(36,874,795)Cost of services rendered(56,040,406)(58,811,314)Cost of duty free inventory sold
(10,890,429)(13,220,873)Cost of catering inventory sold(52,941,288)(189,747,858)Construction expenditure
20,305,19623,953,081Other operating income458,723,597573,779,658Operating revenue
53,914,284199,235,250Construction revenueRestated 20072008(€ million)
34
Consolidated Balance Sheet
1,475,404,0541,630,889,452TOTAL ASSETS
570,694,420594,108,096Total current assets248,683 -Investments held for trading
257,520,816254,097,284Restricted bank balances
64,652,43359,572,792Cash and cash equivalents43,579,33146,732,857Other receivables and current assets
-32,257,634Derivative financial instruments4,702,8977,019,918Due from related parties
49,883,34655,968,143Trade receivables140,797,438128,688,749Prepaid concession expenses, current portion
9,309,4769,770,719Inventories904,709,6341,036,781,356Total non-current assets21,157,80837,366,642Deferred tax assets24,788,45414,891,066Other non-current assets
-8,140,329Non-current due from related parties179,431,221156,306,856Non-current trade receivables
154,155,439120,285,515Prepaid concession expenses, non-current portion131,564,539131,564,539Goodwill
1,235,34824,238Other investments295,835,595454,306,163Airport operation right
30,395,63632,679,835Intangible assets66,145,59481,216,173Property and equipment
ASSETS
Restated 31 December 2007 31 December 2008 (€ million)
35
Consolidated Balance Sheet
337,468,308309,039,300Total Equity14,986,68015,017,194Minority interest
322,481,628294,022,106Total equity attributable to equity holders of the Company(56,584,597)(56,688,149)Accumulated losses
343,039(872,551)Translation reserves
-(31,301,803)Cash flow hedge reserve40,063,86040,063,860Purchase of shares of entities under common control
3,007,5392,665,932Revaluation surplus10,559,03915,062,069Legal reserves
220,182,481220,182,481Share premium104,910,267104,910,267Share capital
EQUITY
Restated31 December 2007 31 December 2008 (€ million)
36
Consolidated Balance Sheet
1,475,404,0541,630,889,452TOTAL EQUITY AND LIABILITIES
1,137,935,7461,321,850,152Total Liabilities
345,589,713409,966,569Total current liabilities9,364,3556,665,623Deferred income
11,533,5603,762,121Provisions
18,014,08125,299,953Other payables1,487,6982,488,341Current tax liabilities
17,144,78069,699,812Derivative financial instruments29,298,69952,428,667Due to related parties
22,007,74927,543,307Trade payables 234,768,093 220,234,320Loans and borrowings
1,970,6981,844,425Bank overdraft792,346,033911,883,583Total non-current liabilities
4,581,2035,752,448Deferred tax liabilities-75,022Long term trade payables
19,068,15016,659,877Deferred income-9,591,944Due to related parties
4,884,1073,247,519Reserve for employee severence indemnity763,812,573876,556,773Loans and borrowings
Restated31 December 2007 31 December 2008
(€ million)
LIABILITIES
37
Consolidated Cash Flow Statement
(€ million)
187,040,759272,672,465Cash flows from operating activities7,203,279-Marked to market valuation of derivative instruments
(4,745,445)(3,434,844)Income tax benefit
55,257,88169,068,363Accrued interest expense on financial liabilities-(289,393)Accrued interest expense
(18,480,348) 16,828,426Unrealised foreign exchange differences on balance sheet items(97,767)135,864Addition / (Reversal) of provision for slow moving inventory
1,256,739713,239Accrual for unused vacation-318,277Impairment of property and equipment
-(448,847)Gain on sale of property and equipment112,80641,733Discount on receivables and payables, net
-55,195Other provisions set9,248,823(2,900,918)(Reversal of) / provision for tax penalties
(676,397)-Reversal of provision for doubtful receivables46,458736,615Provisions set for doubtful receivables
723,817532,968Provision for employment termination benefits10,135,128-Non-recoverable VAT related to concession payments
140,789,005151,756,635Amortisation of concession asset2,583,1134,119,224Amortisation of intangible assets
8,588,49011,673,655Depreciation of property and equipment18,931,59619,098,532Amortisation of airport operation right
Adjustments for:(43,836,419)4,667,741Profit / (loss) for the period
Restated 20072008CASH FLOWS FROM OPERATING ACTIVITIES
38
Consolidated Cash Flow Statement
Restated 20072008(€ million)
13,385,021226,319,746Net cash provided from operating activities (990,213)(1,187,169)Retirement benefits paid
(50,058,532)(71,603,765)Interest paid
(2,371,559)(7,605,088)Income taxes paid
66,805,325306,715,768Cash generated from operations(7,801,633)(38,605,549)Change in VAT portion of prepaid rent
(107,355,756)(95,196,116)Additions to prepaid concession expenses
(2,093,673)28,396,308Change in other long term assets
1,420,715(2,631,291)Change in other payables and provisions
(16,023,619)32,721,912Change in due to related parties
(25,977,895)(5,153,312)Change in trade payables
(7,852,633)18,453,605Change in other receivables and current assets
5,056,392104,994,275Change in restricted bank balances
(108,694)(10,457,349)Change in due from related parties
2,190,048(597,107)Change in inventories
24,476,03323,124,365Change in non-current trade receivables
13,835,281(6,756,180)Change in trade receivables
-(14,250,258)Change in derivative instruments
39
Consolidated Cash Flow Statement
(€ million)
(196,229,884)(213,234,031)Net cash used in investing activities (1,267,225)(5,821,624)Acquisition of intangible assets
(101,552,254)(177,959,052)Additions to airport operation right
(17,444,906)(30,832,563)Acquisition of property and equipment571,7401,130,525
Proceeds from sale of property and equipment and intangible assets and correction of airport operation right
(76,446,285)-Acquisition of subsidiary net of cash acquired(90,954)248,683Net change in investments held for trading
Restated 20072008CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
62,681,73557,728,367CASH AND CASH EQUIVALENTS AT 31 DECEMBER6,254,14662,681,735CASH AND CASH EQUIVALENTS AT 1 JANUARY
56,427,589(4,953,368)NET (DECREASE) / INCREASE FROM CASH AND CASH EQUIVALENTS
239,272,452(18,039,083)Net cash (used in) / provided from financing activities5,366,739-Increase in share capital
48,300,648-Increase in share premium699,089(213,318)(Repayment of) / addition to finance lease liabilities
(369,959)-Dividends paid4,474,119-Purchase of shares under common control
13,522,50030,515Minority change(34,601,256)-Effect of group structure change
60,947,322(110,098,414)Change in restricted bank balances(92,224,347)(674,482,682)Repayment of borrowings
233,157,597766,724,816New borrowings raised
40
Disclaimer
This presentation does not constitute an offer to sell or the solicitation of an offer to buy or acquire any shares of TAV HavalimanlariHolding 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 noresponsibility 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 March, 2009.