Subject: Announcement of results for the first half of 2007

Transcription

1 Date: Subject: Annuncement f results fr the first half f 2007 TAV Airprts Hlding Inc. (ISE: TAVHL, TAV ) annunced results fr the first half ended June 30, The financial results in this annuncement are audited, prepared in accrdance with Internatinal Financial Reprting Standards ( IFRS ) and expressed in Eur. Highlights f the first half The number f passengers using airprts perated by TAV increased by 13% t 14.1 millin in the first half f Similarly, air traffic mvements (ATM) grew by 11% t 148,481 during the same perid, indicating a higher lad factr. 1H07 results are nt directly cmparable with the previus year. Our results f peratins fr 1H06 cnsist almst entirely f incme and expenses generated frm the peratin f Istanbul Ataturk Airprt, under the Lease Agreement. TAV Izmir began peratins n September 13, 2006 and TAV Esenbğa n Octber 16, TAV Gergia has started t prvide mainly passenger, ramp, check-in cunter services and parking-aprn-taxi services in New Tbilisi Internatinal Airprt since 8 February Furthermre, TAV Security became a separate entity within TAV Airprts Hlding n March 2006 and started t be included in cnslidatin frm the secnd quarter f Ttal perating incme increased by 26% frm millin in 1H06 t millin in 1H07. This increase primarily reflected increases in aviatin incme, catering services incme and ther perating incme. The grwth mainly stemmed frm rganic grwth; i.e. higher passenger numbers at Istanbul Ataturk Airprt, and inrganic grwth; i.e. incme frm new terminals. EBITDAR (EBITDA befre cncessin rent) increased by 25% frm 75.7 millin in 1H06 t 95.0 millin in 1H07. EBITDAR margin remained almst flat at 42.2% in 1H07. EBITDA (prfit (lss) adjusted fr incme taxes, investment incme, ther gains and lsses, finance csts, transactin gains and lsses and depreciatin & amrtisatin) amunted t 25.2 millin in 1H07, which was 5.4 millin in 1H06. EBITDA margin imprved frm 3% in 1H06 t 11.2% in 1H07, mainly because f fixed cncessin fee payment and kick-in peratinal leverage. Net lss fr 1H07 was 17.5 millin cmpared t 50.1 millin in 1H06. The net lss figure attributable t the equity hlders f TAV Airprts was 17.3 millin in 1H07, cmpared t 48.0 millin in 1H06; mainly because f the transactin gain (stable exchange rates in 1H07), incme tax benefit (deferred taxes), lwer finance expenses; despite higher emplyee benefit expense and depreciatin & amrtizatin expense f new airprts. With the start f peratins at the new airprts, the BOT assets are straight line depreciated based n their useful lives during the term f the BOT agreement. Hwever, the csts assciated with the cnstructin and financing f these airprts were capitalised thrugh their respective phases f cnstructin. Net debt remained almst the same at 655 millin at the end f June 2007 cmpared t end f March. Average duty-free revenue per passenger decreased frm 17.9 in 1H06 t 16.6 in 1H07, at Istanbul Atatürk Airprt (duty free revenues divided by the sum f internatinal and transit passengers), mainly due t the 36% surge in transit passengers. In the first half f this year, average duty-free revenue per passenger amunted 11.7 at Izmir Adnan Menderes Airprt and 11.8 at Ankara Esenbğa Airprt.

2 Overview f 1H07 Financials Ttal perating incme increased by 26% frm millin in 1H06 t millin in 1H07. This increase primarily reflected increases in aviatin incme, sales f duty free gds and catering services incme. Our incme stream is hard currency, based primarily in Eur and U.S. dllars, with aviatin peratins (which includes grund handling), accunting fr 35% f ttal perating incme and nn-aviatin peratins accunting fr 65% f ttal perating incme in 1H07. Aviatin incme increased by 33% frm 42.2 millin in 1H06 t 56.3 millin in 1H07. This increase primarily reflects the higher passenger number at Istanbul Ataturk Airprt, the inclusin f aviatin incme related t the dmestic and internatinal terminals at Esenbğa Airprt (cntributing 6.9 millin) and the internatinal terminal at Izmir Adnan Menderes Airprt (cntributing 4.8 millin) fr 1H07. TAV Gergia cntributed 2.0 millin t ur aviatin incme. Sales f duty free gds increased by 22% t 62.9 millin in 1H07. This increase principally reflected an increase in internatinal and transit passengers at Istanbul Ataturk Airprt by 17% during the tw perids. Average per passenger spend decreased frm 17.9 in 1H06 t 15.6 in 1H07, n average, reflecting lwer per passenger spend at Izmir Adnan Menderes and Ankara Esenbğa Airprts, cmpared t the Istanbul Ataturk Airprt. Grund handling incme increased by 10% frm 20.7 millin in 1H06 t 22.8 millin in 1H07. Cncessin fee-duty free increased by 18% frm 24.1 millin in 1H06 t 28.4 millin in 1H07. The cncessin fee payable by ATU t TAV Istanbul is apprximately 43% f ttal perating incme generated by ATU in Istanbul Ataturk Airprt. The cncessin fee payable by ATU t TAV Esenbğa and TAV Izmir is apprximately 40% f ttal perating incme generated by ATU. Catering service incme increased by 44% frm 9.9 millin in 1H06 t 14.2 millin in 1H07. The increase mainly reflects the inclusin f catering service incme related t the new airprts; i.e. increase in the ttal area allcated fr catering services. Other perating incme increased by 31% frm 30.9 millin in 1H06 t 40.4 millin in 1H07. The steep increase principally reflects an increase in incme frm area allcatin, incme frm car park peratins and incme frm CIP lunge services. Thugh the bus services incme indicates a 4% drp during the tw perids, the drp stemmed frm the change in the recgnitin f bus services incme. In 2006, TAV Isletme, whlly wned by TAV Airprts, recgnised bus service incme by invicing t Havaş. Starting frm 2007, bus services incme is recrded under Havaş, which is prprtinally cnslidated. If such peratins had been recgnised like in 2006, bus services incme actually wuld grw by 60% in Operating expenses increased by 26% frm millin in 1H06 t millin in 1H07. This was primarily the result f increases in emplyee benefit expense and depreciatin & amrtizatin expense f new airprts, against the remval f ne-ff cnsultancy expenses. With the start f peratins at the new airprts, the BOT assets are straight line depreciated based n their useful lives during the term f the BOT agreement. Hwever, the csts assciated with the cnstructin and financing f these airprts were capitalised thrugh their respective phases f cnstructin. Cncessin rent expenses decreased by 1% frm 70.3 millin t 69.8 millin in 1H07. Cncessin rent expenses principally cnsists f payments t DHMI under the terms f the Istanbul Ataturk Airprt lease agreement and renvatin f the dmestic terminal. The amunt reflects the amrtizatin f the pre-paid cncessin expense and renvatin investment.

3 Cst f duty free inventry sld was 22.0 millin in 1H06, representing 43% f sales f duty free gds, and increased by 20% t 26.5 millin in 1H07, representing 42.2% f sales f duty free gds. Cst f catering inventry sld was 3.2 millin in 1H06 and increased by 55% t 4.9 millin in 1H07. This increase primarily reflects the csts assciated with the increase in ttal area allcated t catering services in new airprts and csts f Cakes&Bakes peratins. Emplyee benefit expense increased by 63% frm 29.9 millin in 1H06 t 48.7 millin in 1H07. This increase principally reflected the increased number f emplyees (38% YY) assciated with new terminals and service cmpanies. Cst f services rendered decreased by 35% frm 11.1 millin in 1H06 t 7.2 millin in 1H07. Cst f services rendered principally cnsists f the cnslidated prtin f ATU, BTA, TAV O&M and Havaş perating expenses. Depreciatin and amrtisatin expense increased frm 3.5 millin in 1H06 t 23.9 millin in 1H07. Depreciatin and amrtisatin expense in 1H06 mainly related t Istanbul Ataturk Airprt and Havaş. Depreciatin and amrtizatin f the Izmir Airprt BOT investment began upn the pening f the internatinal terminal n September 13, 2006 and amunted 9.96 millin in 1H07. Similarly, Ankara Esenbğa Airprt BOT investment began n Octber 16, 2006 and the amunt f depreciatin and amrtizatin expense was 7.6 millin. Other perating expenses increased by 15% frm 37.1 millin in 1H06 t 42.7 millin in 1H07. The increase was principally driven by an increase in cnsultancy expenses, insurance expense, advertisement and marketing expenses. An additinal cnsultancy expense fr Tunisia peratins is arund 4 millin. Furthermre, with the start f peratins at Izmir and Esenbğa terminals, ther perating expenses increased by arund 11 millin in 1H07. Operating expenses als include IPO expenses amunting apprximately 3.4 millin which is ne-ff expenses relating t the first quarter. On the ther hand, management cnsultancy expenses remved in 1H07 (ne-ff expenses amunted 7.4 millin in 1H06) and maintenance expenditures declined, with the finalisatin f the refurbishment wrks at Ataturk Airprt s dmestic terminal. Operating prfit amunted 1.3 millin in 1H07, which was 1.9 millin in 1H06, mainly fr the reasns described abve. EBITDA, which we define as prfit (lss) adjusted fr incme taxes, investment incme, ther gains and lsses, finance csts, transactin gains and lsses and depreciatin & amrtisatin, amunted t 25.2 millin in 1H07, which was 5.4 millin in 1H06, because f the reasns highlighted abve. EBITDAR, which we define as EBITDA befre cncessin rent, increased by 25% frm 75.7 millin in 1H06 t 95.0 millin in 1H07. Finance csts decreased by 14% frm 31.6 millin in 1H06 t 27.3 millin in 1H07, which was principally driven by the decline in interest charged n bank lans. Transactin gain (lss) reflects the impact f exchange gains and lsses n ur US$ denminated and New Turkish Lira denminated mnetary assets and liabilities. The change frm a transactin lss f 16 millin in 1H06 t a transactin gain f 0.9 millin in 1H07, was due t mre stable exchange rates in the first half f Incme tax benefit (expense) cnsists f deferred tax and crprate taxes. In 1H06, incme tax expense was 13.4 millin as cmpared t 2.7 millin incme tax benefit in 1H07. In 2006, we wrte ff deferred tax assets related t unutilised investment incentives due t a change in tax regulatins, which resulted in ur nt being able t use such tax incentives. We have deferred tax assets, primarily tax carry-frward lsses, which may be used in the future. Minrity interest reflects the allcatin f prfit /lsses held by the minrity interest. Minrity interest cnsists f the 25% f TAV Esenbğa and 33.33% f BTA. Hwever, starting frm 3Q07, minrity interest will nt include any prtin f TAV Esenbğa since ur cmpany acquired remaining 25% shares f TAV Esenbğa in July.

4 Net lss fr 1H07 was 17.5 millin as cmpared t 50.1 millin in 1H06. The net lss figure attributable t the equity hlders f TAV Airprts was 17.3 millin in 1H07, cmpared t 48.0 millin in 1H06. TAV AIRPORTS HOLDING 1H07 FINANCIAL SUMMARY ( millin) Revenues EBITDA (*) EBITDA(*) Margin Net Debt Airprts % 632 Istanbul % 404 Ankara % 120 Izmir % 94 Gergia (60%) % 28 Tunisia Services % 23 ATU (50%) % 13 BTA % -1 Havas (60%) % -2 Others % 12 Ttal % 655 Eliminatins Cnslidated % 655 * EBITDAR fr TAV Istanbul TAV Airprts Revenues ( millin) H06 1H07 Change Airprts ,4 142,3 29% Istanbul ,6 115,4 7% Others ,8 26,9 875% Services ,1 137,1 29% ATU (50%) ,1 64,3 23% BTA ,0 22,7 52% Havas (60%) ,6 27,3 6% Others ,3 22,8 72% Ttal ,4 279,4 29% Eliminatins ,3-54,4 Cnslidated ,1 225,0 26% TAV Airprts EBITDAR ( millin) H06 1H07 Change Airprts ,7 87,1 29% Istanbul ,4 84,7 26% Others - 1 0,3 2,4 675% Services ,9 7,1-20% ATU (50%) 6 4 2,6 3,6 40% BTA ,5 1,5 3% Havas (60%) 0 5 6,3 4,7-25% Others 2 9-1,5-2,8 - Ttal ,5 94,2 23% Eliminatins 4 0-0,8 0,7 Cnslidated ,7 94,8 25%

5 (Audited) (Audited) 6 mnths perid 6 mnths perid TAV Airprts Hlding Selected Financials ended ended (Amunts expressed in Eur) 30 June June 2006 Ttal perating incme 225,035, ,137,556 Sales f duty free gds 62,913,697 51,379,113 Aviatin incme 56,305,279 42,183,317 Cncessin fee-duty free 28,446,902 24,062,995 Grund handling incme 22,775,896 20,724,853 Catering services incme 14,231,889 9,909,768 Other perating incme 40,361,856 30,877,510 Operating expenses -223,701, ,281,285 Cst f catering inventry sld -4,875,636-3,150,483 Cst f duty free inventry sld -26,524,820-22,054,959 Cst f services rendered -7,174,193-11,106,998 Emplyee benefit expense -48,676,425-29,945,425 Cncessin rent expenses -69,815,918-70,334,327 Depreciatin and amrtizatin expense -23,889,060-3,541,195 Other perating expenses -42,745,021-37,147,898 Operating prfit 1,334,446 1,856,271 Investment incme 4,958,973 8,232,312 Other gains and lsses -15,828 1,049,560 Finance csts (net) -27,318,777-31,585,307 Transactin gain/(lss) (net) 857,285-16,223,180 Prfit/(lss) befre tax -20,183,901-36,670,344 Incme tax benefit /(expense) 2,716,441-13,459,531 Prfit/(lss) fr the perid frm cntinuing peratins -17,467,460-50,129,875 Attributable t: Equity hlders f the parent -17,262,213-48,021,459 Minrity interest -205,247-2,108,416-17,467,460-50,129,875 Other Financial Data: EBITDA 25,223,506 5,397,466 EBITDAR 95,039,424 75,731,793 Summary Cash Flw Data: Net cash prvided by (used in): Operating activities 62,200,866 45,796,981 Investing activities -34,030, ,246,852 Financing activities 125,055, ,221,963 Summary Balance Sheet Data: 30 June December 2006 Cash and cash equivalents 35,078,767 6,254,146 Restricted bank balances 159,162, ,524,530 Ttal assets 1,309,289,351 1,349,978,310 Bank lans 848,843, ,427,273 Ttal liabilities 945,337,834 1,022,572,475 Ttal equity 363,951, ,405,835 Net debt 654,602, ,648,597

6 TRAFFIC FIGURES 1st Half Year (Jan-June) Jan-Dec Passengers (1) 1H05 1H06 Change % 1H07 Change % Change % Ataturk Airprt % % % Internatinal % % % Dmestic % % % Esenbga Airprt (2) % % % Internatinal % % % Dmestic % % % Izmir Airprt (3) % % % TURKEY TOTAL % % % Internatinal % % % Dmestic % % % Tbilisi Airprt (4) % % % Internatinal % % % Dmestic % % % TAV TOTAL % % % Internatinal % % % Dmestic % % % 1st Half Year (Jan-June) Jan-Dec Air Traffic Mvements (5) 1H05 1H06 Change % 1H07 Change % Change % Ataturk Airprt % % % Internatinal % % % Dmestic % % % Esenbga Airprt (2) % % % Internatinal % % % Dmestic % % % Izmir Airprt (3) % % % TURKEY TOTAL % % % Internatinal % % % Dmestic % % % Tbilisi Airprt (4) % % % Internatinal % % % Dmestic % % % TAV TOTAL % % % Internatinal % % % Dmestic % % % Surce: Turkish State Airprts Authrity (DHMI) and Gergian Authrity fr Tbilisi Airprt (1) Bth departing and arriving passengers, excluding transit (2) Operatin cmmencement date: Octber 16, 2006 (3) Internatinal Terminal nly and peratin cmmencement date: September 13, 2006 (4) Operatin cmmencement date fr new terminal: February 7, 2007 (5) Cmmercial flights nly TAV Airprts Hlding Inc. Aziz Murat Uluğ Nursel Ilgen, CFA Mehmet Emin Zümrüt CFO Investr Relatins Manager Investr Relatins Specialist Fr further infrmatin please t investrrelatins@tav.aer