PPP applications and Investments at Airports

Transcription

1 PPP applications and Investments at Airports Haluk Bilgi PDG, TAV Tunisie S.A. TAV AIRPORTS Tunis, December 2007

2 \\nlon14p20505a\gis$\verticals\transport and Logistics (TPT)\Clients2\TAV\IPO 2006\Other\Roadshow\TAV Roadshow presentation FINAL v9 (No Script).ppt /1 CONTENT Aviation Industry Growth in Aviation Business The Player in the Market Valuation of an Airport as abusiness TAV Airports as a succesful example for a company born through PPP IPO of TAV Example for a different type of PPP TUNISIA 1

3 \\nlon14p20505a\gis$\verticals\transport and Logistics (TPT)\Clients2\TAV\IPO 2006\Other\Roadshow\TAV Roadshow presentation FINAL v9 (No Script).ppt /2 Aviation Industry commercial aircraft TODAY 4.2 billion passengers 2000 commercial airports 93 Airports represent the % 64 of the passengers in the world BY YEAR commercial aircraft 9 billion passengers ~$300 billion investment is needed for Airport constructions, expansions Problem : Inadequate Airport Infrastructure - Solution : Public Private Partnerships (PPPs) 2

4 AIRPORTS... \\nlon14p20505a\gis$\verticals\transport and Logistics (TPT)\Clients2\TAV\IPO 2006\Other\Roadshow\TAV Roadshow presentation FINAL v9 (No Script).ppt /3 Airports, are the melting pots of globalization where travellers multibusinesses products and goods meet in one place... Airport operators have to bring dynamic life to airports which will help you to become chosen by airlines and passengers.. Airports are no longer simply infrastructure providers,they are multi-businesses, facing commercial disiplines,focusing on new investments and sustainable growth... 3

5 \\nlon14p20505a\gis$\verticals\transport and Logistics (TPT)\Clients2\TAV\IPO 2006\Other\Roadshow\TAV Roadshow presentation FINAL v9 (No Script).ppt /4 PPPs and Key Success Factors B.O.T. (Build Operate Transfer) B.T.O. (Build Transfer Operate) B.O.O. (Build Operate Own) Long Term Concessions Trade Sales Clearly defined scopes Clear definition of the Revenue Streams Clear definition of Cost Centers Agreed Capex (Capital Expenditure) based on the concept (design) Predefined legal framework Fair definition of termination clauses Dispute Clause 4

6 \\nlon14p20505a\gis$\verticals\transport and Logistics (TPT)\Clients2\TAV\IPO 2006\Other\Roadshow\TAV Roadshow presentation FINAL v9 (No Script).ppt /5 Valuation Parameters Revenues 1) Aeronautical Revenues Pax Fee Landing Fee Parking Fee Lighting Fee PBB Fee Check in CUTE Fee Security Fee... Etc Opex The OPEX in airports is mainly salaries of employees, maintenance expenditures, electricity and water consumption Capex CAPEX is the amount of investment needed to build a new terminal or a runway or expand a terminal; or for refurbishment. 2) Non aeronautical Revenues (Commercial ) Duty Free Revenues F&B Revenues Car-Park Revenues Advertisement Area allocation revenue... etc. 5

7 LODOCS1 - #172131v14 /6 Valuation: Lucrative Multiples Date Announced Target Acquiror Stake(%) EV( ) EV/EBITDA (X) Oct-06 London City Airport AIG na Jun-06 BAA Ferrovial ,8 Dec-05 Budapest Airport BAA ,3 Dec-05 Copenhagen Airport Macquarie ,4 Mar.05 Hochtief Airport CDC-Hastings ,8 Feb-05 Copenhagen Airport Macquarie ,6 Nov-04 BIAC Macquarie ,8 Nov-04 TBI Aena ,6 Oct-04 London Luton Airport TBI ,3 May.03 Belfast City Airport Ferrovial ,6 Jul-02 Rome Airport Macquarie ,5 Minimum 9,6 Maximum 39,3 Median 13,6 Mean 15,8 Source: Company reports, Pressreleases Company Country EV/07E EBITDA(X) EV/08E EBITDA(X) EV/09E EBITDA(X) ADP France 13,5 12,2 11,2 Fraport Germany 8,6 8,2 7,8 Vienna Austria 10,2 9,6 8,9 TAV (*) Turkey 8,2 6,4 5,6 Zurich Switzerland 9,9 9,3 8,9 Aero Del Sureste (ASUR) Mexico 9,6 8,2 7,3 Aero Del Pacifico (GAP) Mexico 13,2 11,5 10,4 Aero Del Central Norte (OMA) Mexico 13 10,7 9,4 Airports of Thailand Thailand Beijing Cap. Int l China 32,1 24,5 21,9 Hainan Meilan Airport China 8,4 6,9 5,3 GMR India 52,5 28,5 16,1 Source: Bloomberg, IBES Consensus Estimates Median 10,2 9,6 8,9 6

8 LODOCS1 - #172131v14 /7 Concession Overview Airport Type / expire TAV stake Scope 2006 Pax (mppa) Fee/pax Intern l Fee/pax domestic Volume guarantee Concession fee Istanbul Ataturk Lease (2021) 100% Intl + dom 21.2 US$15 3 No $165m/yr Ankara Esenboga BOT (2023) 100% 0.6m Dom. Intl + dom Int l for % - p.a. Izmir A Menderes BOT (2015) 100% 1.0m Int l for Intl % - p.a. Tbilisi BOT (2027) 60% US$22 Intl + dom 0.6 US$6 No - (+ 2% p.a.) BOT Batumi 60% Intl + dom - US$12 US$7 No - (2027) Monastir & Enfidha BOT + concession (2047) 100% Intl + dom in in in in 2009 No 11-26% of revenues from 2010 to 2047 Source: Company data, Notes: (1) As of 30 June

9 TAV Airports Overview Airports Duty Free Food and Beverage Ground Handling Turkey Istanbul Atatürk Airport (100%) ATÜ (50%) Largest duty free operator in Turkey BTA (67%) 44 outlets with a total seating capacity of 4,500 in Istanbul Havaş (100%) Traffic, ramp and cargo handling Ankara Esenboğa Airport (100%) Izmir Adnan Menderes Airport (Intl. Terminal) (100%) Georgia Tbilisi International Airport and Batumi Airport (60%) Partner with Unifree leading German travel retailer (Travel Value) Operates Istanbul Airport Hotel Bakery & pastry factory serving Starbucks in Turkey Major groundhandler in Turkey with a c.51% share Operates in 11 airports in Turkey including Istanbul, Ankara, Izmir and Antalya Tunisia Monastir and Enfidha Airports (100%) Connectivity is Productivity LODOCS1 - #172131v14 /8 Other O&M, IT and Security TAV O&M (100%): Commercial area allocations CIP / VIP TAV IT (96%): Airport IT services TAV Security (67%): Security service provider in Istanbul, Ankara and Izmir 8

10 Ownership Structure Current Shareholder Structure 18.40% 18.86% % % % 15.71% % 4* 3.15% 25.60% LODOCS1 - #172131v14 /9 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 Construction Industries 4. Goldman Sachs (Dec 2006) New shareholders 5. Babcock & Brown infrastructure fund (Dec 2006) 6. Global Investment House a Kuwait based fund (Aug 2006) 7. IDB Infrastructure fund Bahrain based private investment vehicle affiliated with the Islamic Development Bank (Apr 2006) 8. Kuwait Investment Authority 9. Free Float 9

11 LODOCS1 - #172131v14 /10 Offering Summary Offer Structure Global International Offer (69%) Outside US, institutional investors under Reg S Public offer in Turkey (31%) Offer Size 18.4% free float including over allotment Mix of 25% primary and 75% secondary shares $320m offer with a MCap of $1,740m IPO Price TRY (Price Range TRL 8.55 TRL ) Listing Istanbul Stock Exchange ( ISE ) 10 cities visited in Europe and Middle East Roadshow 11 day roadshow comprising 48 one-on-one meetings, conference calls with 11 investors and group meetings with 54 investors In total, management presented to over 113 investors, managing equity assets worth more than US$1 trillion Reception from investors c.$5 billion worth of bids received, 16 times oversubscribed International demand: c.$4 billion (18x oversubscribed), demand from 149 foreign investors Domestic demand: c.$1 billion (10x oversubscribed), demand from 18,428 domestic investors 10

12 LODOCS1 - #172131v14 /11 Airport Player Segmentation Players managing/owning airports internationally need to have both strong financial resources and established credibility Airport Operator Segmentation Matrix High Vancouver ADP Changi Fraport Hoctief Ferrovial Macquarie Airports Established Credibility Vienna TAV Low nice Schiphol Vinci Alterra Financial Institutions Goldman Sachs,ABN Amro, Deutche Bank,etc.. Source :Exambela Consulting / UK Highly Limited Significant Potential Financial Resources 11

13 One Stop Shop Solutions TAV TAV AIRPORTS AIRPORTS HOLDING HOLDING TAV ISTANBUL TAV ISTANBUL TAV IT TAV IT TAV ANATOLIA TAV ANATOLIA TAV O&M TAV O&M TAV IZMIR TAV IZMIR TAV SECURITY TAV SECURITY TAV GEORGIA, TAV GEORGIA, TBILISI TBILISI HAVAS GROUND HAVAS GROUND HANDLING HANDLING TAV GEORGIA, TAV GEORGIA, BATUMI BATUMI BTA FOOD & BTA FOOD & BEVARAGE BEVARAGE TAV TUNISIE, TAV TUNISIE, MONASTIR MONASTIR ATU DUTY FREE ATU DUTY FREE TAV TUNISIE, TAV TUNISIE, ENFIDHA ENFIDHA EMPLOYEES EMPLOYEES TAV AIRPORTS TAV AIRPORTS LODOCS1 - #172131v14 /12 TAV TAV CONSTRUCTION CONSTRUCTION TAV CAIRO TAV CAIRO TAV QATAR TAV QATAR TAV ENFIDHA TAV ENFIDHA TAV BATUMI TAV BATUMI TAV DUBAI TAV DUBAI TAV LIBYA TAV LIBYA EMPLOYESS TAV CONSTRUCTION EMPLOYESS EMPLOYESS TAV CONSTRUCTION TAV CONSTRUCTION 12

14 Operation of Habib Burgiba International Airport Construction and Operation of the Zine El Abidine Ben Ali Enfidha International Airport TAV TUNISIA SA Both concessions are for period of 40 years beginning from the date of signing The concession agreement is based on revenue sharing and investment for the both airports

15 LODOCS1 - #172131v14 /14 Mission To Create the most advanced airport in the region from a Greenfield area to increase passenger numbers and service level for airlines, passengers and employees with the utmost attention to the environment and human rights while generating direct and added value to the Tunisian Economy Vision To Generate the biggest Airport Hub in the region to serve not only for Tunisia but all Africa and Southern Europe by connecting all Continents to Enfidha with the most advanced aviation standards and technology and make the Tunisia one of the best Mediaterranain destination for Worldwide Travelers 14

16 LODOCS1 - #172131v14 /15 TUNISIA During the next plan ( ), Tunisia's economy should witness an annual growth rate of 6%, compared to 4,5% from 2001 to The 2007 Davos World Economic Forum Report ranks Tunisia first in Africa and second in the Arab World after Dubai, in terms of tourist and travel competitiveness. The report, which is based on the basis of three main criteria: business environment, human and natural resources and the quality of political reforms undertaken, also writes that Tunisia ranks 34 th in the world insofar as its travel and tourist competitiveness are concerned. Tunisia comes ahead of Turkey (52 nd ), Thailand (43 rd ) and Morocco (57 th ). Tunisia 's which is also one of the major destinations in the world when it comes to health and spa tourism, has recently launched in a significant upgrading effort of its hotels and services. More than 6 million tourists visit the country each year, making it one of the top Mediterranean destinations. 15

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