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TAV AIRPORTS HOLDING

First Half of 2010 Results

“Superb performance”

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TAV Havalimanları Holding A.Ş. / TAV Airports Holding Inc.İstanbul Atatürk Havalimanı Dış Hatlar Terminali / İstanbul Atatürk Airport International Terminal34149 Yeşilköy / İstanbul / TurkeyTel : (90) 212 463 30 00 2122-2123-2124 Pbx / Fax : (90) 212 465 31 00 http://ir.tav.aero e-mail: [email protected]

13% pax, 25% revenue, 52% EBITDA growth attainedHighest quarterly revenue ever Net profit turned to positive territory Positive free cash flowNine-folds increase in cash flow from operations Decline in holdco debt

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Contents Page

CEO’s Message 3IFRIC 12 & Hedge Accounting 4Basis of Consolidation 5Highlights of 1H10 6Financial Results (1H10) 11

Income Statement 24Balance Sheet 25Cash Flow Statement 27

Traffic Results 29About TAV Airports 33

TAV Havalimanları Holding A.Ş. / TAV Airports Holding Inc.

İstanbul Atatürk Havalimanı Dış Hatlar Terminali / İstanbul Atatürk Airport International Terminal

34149 Yeşilköy / İstanbul / Turkey

Tel : (90) 212 463 30 00 2122-2123-2124 Pbx / Fax : (90) 212 465 31 00

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TAV Airports Holding has expanded its organic and inorganic growth, posting impressive operational and

financial growth figures in the first half of 2010. Against closure of the 06/24 runway at Istanbul Ataturk

Airport between March 08th-June 30th period, as well as the flight cancellations in April due to volcanic ash

cloud, TAV attained an exceptional 13% passenger growth in 1H10, outpacing European passenger growth

of 2.4% and global passenger growth of 5.9%.

On the back of new operations such as TAV Macedonia, TGS and NHS, revenue growth realized at even

higher level at 25% to reach €351 million. During April and June 2010 period, TAV Airports Holding

recorded the highest quarterly revenue figure ever. Coupled with the operational leverage, EBITDA

increased by 52%, bringing EBITDA to €85 million and EBITDA margin 4.2 percentage points up to 24%.

All in all, net profit turned to positive at €7 million in 1H10, compared to a net loss of €2.5 million in

1H09 and €15.7 million in 1Q10.

Cash flow from operations increased around nine-folds to €65 million, while capital expenditures

decreased substantially with the completion of Enfidha Airport construction. Accordingly, free-cash-flow

turned to positive territory from negative €194 million in 1H09.

Deleveraging process initiated at the beginning of 2009 completed with TAV Tunisie stake sale to PAIDF in

June 2010. Net debt at the holding level decreased from €200 million at the end of 2008 to €44 million at

the end of 1H10.

With a sound balance sheet and exceptional operational performance, we have delivered what we have

promised. We are confident in the cash generation capacity of our business. I would like to thank all TAV

Group employees and the passengers for their contributions.”

Dr.M.Sani Şener

Member of Board of Directors,

President & CEO

CEO’s Message




Tel : (90) 212 463 30 00 2122-2123-2124 Pbx / Fax : (90) 212 465 31 00

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Introduction to Financials

TAV Havalimanları Holding A.Ş. / TAV Airports Holding Inc.İstanbul Atatürk Havalimanı Dış Hatlar Terminali / İstanbul Atatürk Airport International Terminal34149 Yeşilköy / İstanbul / TurkeyTel : (90) 212 463 30 00 2122-2123-2124 Pbx / Fax : (90) 212 465 31 00http://ir.tav.aero

Income

StatementDecrease (guaranteed pax fees)Aviation income

AddedDiscount interest income

Decrease

Depreciation and amortisation

expense (-)

AddedConstruction expenditure (-)

AddedConstruction revenue

Decrease (guaranteed pax fees)Aviation income

AddedDiscount interest income

Decrease

Depreciation and amortisation

expense (-)

AddedConstruction expenditure (-)

AddedConstruction revenue

Removed

Build-operate-transfer

(“BOT”) Investment

IncreaseTrade receivables

AddedAirport operation right

Removed

Build-operate-transfer

(“BOT”) Investment

IncreaseTrade receivables

AddedAirport operation right

Balance Sheet

(Assets)

1 – IFRIC 12 & Hedge Accounting

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 depreciationexpenses while the increase in financial income in accordance with such interpretation. “BOT assets” are classified as “airportoperation 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-upon costs) on its financials instead of investments according to the completion of infrastructure throughout the constructionperiods. Mark-up rates for TAV Izmir, TAV Esenboga, TAV Tbilisi, TAV Tunisia and TAV Gazipasa, which are in the application ofIFRIC 12 are assessed by the management as 0%, 0%, 15%, 5% and 0% during the application periods, respectively.

•The remaining discounted guaranteed passenger fee to be received from DHMİ according to the agreements made for theoperations of Ankara Esenboga Airport and Izmir Adnan Menderes Airport is represented as guaranteed passenger feereceivable in the balance sheet as a result of IFRIC 12 application.

•Subsidiaries, TAV Istanbul, TAV Esenboga, TAV Izmir and TAV Tunisie enter into swap transactions in order to diminishexposure to foreign currency mismatch relating to DHMI installments and interest rate risk to manage exposure to thefloating interest rates relating to loans used.

•100%, 68% and 100% of floating bank loans for TAV Istanbul, TAV Izmir and TAV Esenboga, respectively are fixed withfinancial derivatives, 100% of floating senior bank loans for TAV Tunisie is fixed with financial derivative until 31 October2009 and 85% of floating senior bank loans for TAV Tunisie is fixed with financial derivative starting from 1 November2009.

•Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognized directly inequity to the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value arerecognized in profit or loss.

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Introduction to Financials


2. Basis of Consolidation

•The attached consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”).

•Although the currency of the country in which the Group is domiciled is Turkish Lira (TRL), most of the Group entities’ functional currency and reporting currency is EUR.

•Each entity is consolidated based on the following methods:

•TAV Istanbul, TAV Izmir, TAV Esenboğa, TAV İşletme (TAV O&M), TAV Gazipaşa, TAV Batumi and TAV Macedonia are fully consolidated without non-controlling interest’s ownership.

•TAV Tunisie, HAVAŞ Holding, HAVAŞ, BTA, BTA Georgia, BTA Tunisie, BTA Macedonia, Cakes & Bakes, TAV İşletme Georgia (TAV O&M Georgia), TAV İşletme Tunusie (TAV O&M Tunisie), TAV Bilişim (TAV IT), TAV Tbilisi, Batumi Airport LLC and TAV Güvenlik (TAV Security) are fully consolidated with the non-controlling interest’s ownership reflected as a minority interest. The share capital of Batumi Airport LLC is fully allocated as non-controlling interest due to the transfer of right onshares to JSC at the end of share management agreement period.

•With the sale of HAVAŞ to HAVAŞ Holding, in which TAV Airports Holding has 65% ownership, TAV started to deduct minority interest for the 35% non-controlling interest.

•Turkish Ground Services (TGS) is jointly controlled by HAVAŞ and Turkish Airlines (THY) and has been proportionately consolidated starting from December 31st, 2009. TGS started to serve ground handling services to Turkish Airlines flights at Istanbul, Ankara, Izmir, Adana and Antalya Airports, starting January 1st 2010.

•After the acquisition of 6% share in TAV Tbilisi in November 2009, TAV Holding obtained the control of TAV Tbilisi and accordingly started to fully consolidate it from the effective date of share transfer.

• ATÜ, ATÜ Georgia, ATÜ Tunisie, ATÜ Macedonia, TAV Gözen, CAS, TGS and NHS are proportionately consolidated. TGS’s 50% stake was acquired by HAVAŞ following the approval of the joint venture agreement between THY and Havas by the Competition Board in August 2009. TGS is jointly controlled by HAVAŞ and THY and is proportionately consolidated as of 31 December 2009.

3. Macro Data

Average Rate Reporting Date Closing Rate

1H10 1H09 FY09 FY08 1H10 1H09 FY09 FY08

TL-EUR 2.0157 2.1400 2.1510 1.8968 1.9216 2.1473 2.1603 2.1409

TL-USD 1.5162 1.6056 1.5459 1.2976 1.5746 1.5304 1.5057 1.5123

USD-EUR 1.3294 1.3328 1.3914 1.4618 1.2204 1.4031 1.4347 1.4156

EUR-GEL 2.3381 2.2207 2.3305 2.1887 2.2482 2.3294 2.4195 2.3646

1Q10 FY09 FY08GDP (TL billion) 243.0 954.0 951.0GDP (USD billion) 161.0 618.0 742.0GDP Growth Rate (%) 11.7% -4.7% 0.7%CPI Inflation 8.4% 6.5% 10.1%Tourism Revenues (US$ mn) *1,592 21,250 21,951 * as of May 2010

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Highlights of 2010


01.07.2010, Take over of service points from USASTAV Airports Holding’s 66.66% subsidiary, BTA Airports Food and Beverage Co. (BTA) has taken over the operations of 5 F&Bservice points (Kantin, Beerport, Kokpit Cafe, Kokpit Brasserie, Botanik Cafe) at the Istanbul Ataturk Airport Domestic Terminalfrom USAŞ Uçak Servisi A.Ş. as of July 1st, 2010. With the take-over, BTA’s service points increased to 138.

30.06.2010, Memorandum of Understanding (Indonesia)A Memorandum of Understanding ("MOU") has been signed among TAV Airports Holding Co., Sigma Group/PT Wira CiptaSukses from Indonesia and the Indonesian Government on June 30, 2010 for cooperation in potential airport projects to becarried out in Indonesia.

23.06.2010, Upgrade of Antalya Gazipasa Airport from 2C to 3CWe have received legal approval for the category upgrade of Antalya Gazipaşa Airport from 2C to 3C. TAV Gazipaşa Yatırım,Yapım ve İşletme A.Ş. (TAV Gazipaşa), owned by TAV Airports Holding, is entitled to operate the airport until July 2034.As per Ministry of Transportation Airport Construction, Operation, and Certification Regulations, code 1 and 2 airports aredescribed as small airports and can be used by small jets and STOL aircraft with a low passenger capacity. Code 3 airports--including Gazipasa Airport--are considered mid-sized airports and can accommodate the landings and take-offs of passengeraircraft.

14.06.2010, Medina Int’l Airport TenderA tender will be made for the Medina International Airport in Medina, Saudi Arabia whose operating period shall be 25 years,by the concerned local authority the General Authority of Civil Aviation (GACA). The consortium formed by TAV AirportsHolding, Saudi Oger Ltd., Al Rajhi Holding Group, and Consolidated Contracting Company (CCC) have got the preliminaryqualification for the above cited tender. The public shall be informed of all stages regarding the matter.

09.06.2010, MoU wtih AirBalticTAV Airports Holding has signed a Memorandum of Understanding ("MOU") with the the Latvian national airline AirBaltic fora Joint Venture partnership on a 50:50 shareholding basis for the development, construction and operation of a newpassenger terminal at Riga International Airport.AirBaltic based at Riga Airport has been the fastest growing flag carriers of Europe by number of routes added, launching 27new routes in 2009 and bringing its destination number to 80. In 2009, AirBaltic transported 2.8 million passengers, while RigaInternational Airport served 4.1 million passengers in the year.

08.06.2010, TAV Tunisie Share Sale to PAIDFIn our disclosure dated 5th March, 2010, we stated that the agreement regarding the sales of 18 percent minority shares ofTAV Tunisie SA to Pan African Infrastructure Development Fund (PAIDF) for 39,690,000 Euros in total was signed. Hereby, westate that the required approvals for sale transaction have been received and the payment of the above mentioned amounthas been collected in cash. Proceeds from the sale shall be used to strengthen the capital structure of our Company.

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24.05.2010, Ordinary General Shareholders’ Meeting Resolutions

Ordinary General Shareholders’ Meeting, regarding the 2009 operations of the company, convened on 24th May 2010,Monday at 10:00 in Akfen Meeting Hall located in the headquarters at the address of Atatürk Havalimanı Dış Hatlar Terminali,Yeşilköy, Istanbul.In the Ordinary General Shareholders’ Meeting;1. Balance Sheet and Profit/Loss Accounts, Activity Report of Board of Directors and Auditors’ Report and IndependentAuditors’ Report for the year 2009 (01st January 2009-31st December 2009) were read and approved.2. Resolved; setting aside the consolidated net profit as extraordinary reserves, instead of distributing it as dividend, as a netprofit of 41,082,219 TL was attained in the financial accounts whereas a net loss of 141,232,832 TL accumulated in thefinancial accounts achieved as a result of the 2009 operations of the Company.3. Resolved; amendment of the clause 13.1 of the Articles of Association of the Company.4. Resolved, Members of the Board of Directors and Auditors shall be released for their activities relating to the year 2009.5. Resolved, Mr. Önder Sezgi, Mr. İhsan Sancay, Mr. Vehbi Serkan Kaptan and Mr. Aziz Murat Uluğ shall be appointed for thevacancies in the Members of the Board of Directors throughout the year.6. Resolved, election of new Board Members replacing the Board Members whose term of duty has come to an end anddetermination of their term and remuneration. Accordingly, the following Board Members are selected to perform theirduties for 3 (three) years as of the registration date;Mr. Hamdi AKIN, Mr. Mustafa Sani ŞENER, Mr. İbrahim Süha GÜÇSAV, Mr. Ali Haydar KURTDARCAN, Mr. Abdullah ATALAR ,Mr. Önder SEZGİ, Mr. Ahmet Ersagun YÜCEL and as Independent Board Members; Mr. Mehmet Cem KOZLU and Mr. PierreCharles Mari Pichot De CHAMPFLEURY.7. Resolved, Akis Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. (KPMG) shall be appointed as IndependentAuditing Firm within the frame of the Capital Market Law and Capital Markets Board (SPK) regulations.8. Resolved, Chairman of the Board of Directors and Board Members shall be authorized to execute the transactions written inthe articles 334 and 335 of the Turkish Commercial Code.Herein the Minutes of General Shareholders’ Meeting is attached.In addition to the abovementioned items, the General Assembly is informed regarding the following issues;1. Donations and contributions in the total amount of TL 120,771 were made to various nonprofit associations and trustsworking for public benefit in 2009.2. Disclosure Policy document of the Company prepared within the framework of Corporate Governance Principles of CapitalMarkets Board.3. “Transactions with the Related Parties” within the context of Article 5 of the notification Series: IV No:41 of Capital MarketsBoard.4. Commitments and contingencies given as per the decision no. 28/780 of the Capital Markets Board dated 09/09/2009.5. The administrative fine issued in the Weekly Bulletin dated 24/07/2009.

07.05.2010, Regarding Ordinary General Shareholders' Meeting for the year 2009The Agenda of Year 2009 Ordinary General Shareholders’ Meetingof TAV HAVALİMANLARI HOLDİNG ANONİM ŞİRKETİ to Be Held on24 May 2010•Opening and forming of the Presidential Board,•Granting authorization to the Presidential Board on signing the Ordinary General Shareholders’ Meeting Minutes,•Review and discussion on the Reports of the Board of Directors and the Auditors for the fiscal year 2009,•Discussion on and approval of the Balance Sheet and the Profit and Loss Statements for the fiscal year 2009,•Discussion and approval of setting aside the consolidated net profit as extraordinary reserves, instead of distributing it asdividend, as a net profit of 41.082.219 TL was attained in the financial accounts whereas a net loss of 141.232.832 TLaccumulated in the financial accounts prepared in accordance with the legal records,•Amendment of the clause 13.1 of the Articles of Association of the Company•Releasing the Members of the Board and the Auditors for their activities for the fiscal year 2009,•Approval of the appointment of the new Members of the Board to the Board memberships which became vacant during theyear,•Election of new Members of the Board replacing the Members of the Board whose term of duty has come to an end anddetermination of their term and remuneration,•Approval of the Independent External Auditor,•Presentation to the Shareholders of the Disclosure Policy prepared pursuant to the Corporate Governance Principles of theCapital Markets Board,

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•Presentation to the Shareholders of the transactions of the “Related Parties” within the framework of the provision of Article5 of the Communique of the Capital Markets Board Serial IV No. 41,•Presentation to the Shareholders of the donations made by the Company during 2009,•Granting authorization to the Chairman and the Members of the Board pursuant to Article 334 and 335 of the TurkishCommercial Code,•Giving information regarding pledges, collaterals, and mortgages to the shareholders as per the decision no. 28/780 of theCapital Markets Board dated 09/09/2009.•Giving information regarding the administrative fine issued in the Weekly Bulletin dated 24/07/2009.•Wishes and requests,•Closing.

27 04 2010, Amendment in the Articles of Association

In the board meeting of our Company dated 27.04.2010, a resolution has been reached to make an amendment in the clauseof the Articles of Association concerning the decrease of the number of board members from at least 15 (fifteen) to at least 9(nine). The amendments in the Articles of Association will be submitted for the approval of the general assembly of ourCompany pursuant to obtaining legal authorization.

20 04 2010, On the impact of the volcanic activity in Iceland

The ash cloud caused by an erupting volcano in Iceland has been causing interruptions in air traffic and flight cancellationsmainly in Northern Europe. Air space in many Northern European countries has been closed. However, news has beenreceived that the air space in some countries such as Germany will be opened.

The General Directorate of State Airports Authority (DHMI) announced on 19th April 2010 that the air space of Turkey doesnot need to be closed; takeoffs and landings are being orchestrated through altitude arrangements and route alterations. Theair spaces of Istanbul Ataturk, Ankara Esenboga, Izmir Adnan Menderes and Antalya Gazipasa Airports in Turkey and theairports in Georgia, Macedonia and Tunisia operated by TAV Airports Holding are also open.

A 26% increase has been recorded in the number of International Departing passengers between April 1-11, 2010 at IstanbulAtaturk Airport operated by TAV Airports Holding Co., compared to the same period of last year. After that date, due tonegative impacts caused by the ash cloud and the closure of air space in some countries, nearly 600 flights were cancelled andnearly 1.350 flights were realized between April 15-18, 2010 in International Arrivals and Departures flights.

As TAV Airports Holding, we have initiated the distribution of provisions to meet the basic food and sheltering needsof stranded passengers through our affiliate company BTA Catering Services. Additionally, some of the stranded passengersare being accomodated at the Airport Hotel next to the Airport.

13 04 2010, North Hub Services Share Purchase Agreement

We had announced in our special announcement dated 22.03.2010 that Ground Handling Services Co. (HAVAŞ), a subsidiaryof TAV Airports Holding Co. started negotiations to purchase 50% shares of North Hub Services (“NHS”), a company renderingground handling services at Latvia Riga International Airport and aiming to expand its operations in Northern Europeancountries.

As a result of the negotiations, the parties signed the agreement on 12.04.2010 regarding the purchase of 50% shares of NHSby HAVAŞ for €3,250,000 in total. The purchase price shall be paid in cash upon receiving of necessary approvals. The publicshall be informed about all the concerned developments.

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25 03 2010, Havaş SaleIn our special announcement dated March 18th, 2010, we reported the launch of the Havaş Airports Ground HandlingInvestment Holding (“Havaş Holding”). In accordance with its ownership in Havas Holding, our company (TAV Airports HoldingCo., TAV Operations Services Co. and TAV IT Services Co.) had transferred capital of 78,000,000 Euros to Havas Holding, asHSBC Investment Bank Holdings Plc (“HSBC”) and Is Private Equity injected respective 34,000,000 and 8,000,000 Euros incapital into the new company, totaling to a capital of 120,000,000 Euros. Havas Holding utilised 60,000,000 Euros from Türkiyeİş Bankası (Is Bank) and took over 100% of Havaş shares for a total of 180,000,000 Euros. Upon completion of the necessarytransactions, Havas Holding and Havas will be merged and in this manner all parties shall be direct shareholders of Havaş.As part of the loan agreement signed between Havaş Holding and Is Bank, each shareholder of Havas Holding including ourcompany, signed a Share Pledge Agreement with Is Bank. In accordance with this agreement, our company pledged 65% ofthe Havaş Airports Ground Handling Investment Holding Co. shares in favor of the Is Bank.

22 03 2010, Negotiations with North Hub ServicesHAVAS Ground Handling Services Co., a subsidiary of TAV Airports Holding Co., has started negotiations to purchase 50%shares of North Hub Services (“NHS”), a company rendering ground handling services at Latvian Riga International Airport.NHS started its operations at Riga Airport as of 1st January 2010 and aims to extend its operations in Northern Europeancountries.

18 03 2010, Launch of Havas HoldingIn order to finalize the sales transactions referred to in our special announcement dated the 19th of October 2009, ourcompany (TAV Airports Holding Co., TAV Operations Services Co., TAV IT Services Co.) possesses a 65% share, HSBCInvestment Bank Holdings Plc a 28.3333% share and Is Private Equity Investment Trust Inc. has a 6.6667% share in HavaşAirports Ground Handling Investment Trust Co., which has been established with 228,000,000 TL in principal capital and isregistered at the Istanbul Trade Registry.

05 03 2010, TAV Tunisie minority share sales agreementIn the special announcement dated 01.03.2010, TAV Airports Holding had disclosed that negotiations had started for the saleof 18% shares in TAV Tunisie SA, 85% stake of which is owned by TAV Airports Holding Co., for €39,690,000 to the Pan AfricanInfrastructure Development Fund.

As a result of the negotiations, an agreement concerning the sale of 18% minority shares of TAV Tunisie SA for €39,690,000 tothe Pan African Infrastructure Development Fund has been signed. Upon obtaining the necessary approvals, the total saleprice will be collected in cash. The funds generated by the sale transaction will be utilized to strengthen the financial structureof our Company.

01 03 2010, TAV Tunisie minority share salesNegotiations have started for the sale of 18% shares in TAV Tunisie SA, 85% stake of which is owned by TAV Airports HoldingCo., for €39,690,000 to the Pan African Infrastructure Development Fund. The public will be kept informedabout developments regarding the share sale, as they occur.

01 03 2010, Takeover of operations of Skopje and Ohrid AirportsTAV Macedonia DOOEL, wholly-owned subsidiary of TAV Airports Holding Co., has taken over operations of the airports inMacedonia, Alexander the Great in Skopje and St. Paul the Apostle in Ohrid, as of March 1, 2010. The operating period of theairports is 20 years (until March 2030) and the operations shall comprise all airport business activities except air trafficcontrol. Currently, both airports are operational.

The passenger service fees have been set as €17.5 per passenger (including security charges) for Alexander the Great Airportand €16.2 for St. Paul the Apostle Airport. As per 2009 figures, service was rendered for 599K passengers at Alexander theGreat Airport and 36K passengers at St. Paul the Apostle Airport.

26 01 2010, BTA Tax Issue

BTA Airports Food and Beverage Inc. (BTA) (66.66% owned by TAV Airports Holding Inc.) and the Ministry of Flnance werenot able to reach an agreement upon a reconciliation requested for the corporate and value added tax notified in the penaltyreport regarding the accounts of October 2007-December 2007. BTA has decided to file alawsuit disputing the abovementioned tax and penalty. The public will be kept informed about developments as they occur.

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25 01 2010 Havaş - Directorate General of Civil Aviation ApprovalWe have released that we received the approval of the Competition Authority in our special case announcement dated 11th December 2009 which had been mentioned in our special case announcement dated 19th October 2009. We have been notified about the approval of the Directorate General of Civil Aviation on 25th January 2010. The execution regarding the transfer of the shares is subject to fulfillment of other commercial preconditions.

05 01 2010 TAV Macedonia Concession AgreementRe : Our material disclosure dated 30.05.2008, 25.08.2008, 03.09.2008, 04.09.2008, 23.09.2008, 24.09.2008, 29.12.2008 and 27.08.2009We had declared in our special announcement dated 27.08.2009 that the Concession Agreement signed between TAV Macedonia DOOEL Skopje (renamed as “TAV Macedonia DOOEL, Petrovec“) and the Macedonian Ministry of Transportation on 24.09.2008 for the Alexander the Great Airport in Skopje and the St. Apostle Paul Airport in Ohrid, as well as the construction of the new cargo airport in Shtip, and the operation thereof for 20 years will be effective on 01.03.2010. The Concession Agreement is amended by the parties to delay the construction date of the cargo airport to be constructed in Shtip to a further date to complete the meteorological and technical measurements as per the amendments made in Macedonian aviation regulations. Accordingly, upon the completion of the meteorological and technical measurements which will be carried out by an institution to be authorized by Macedonian government for not less than 10 years, the construction of Shtip cargo airport will be completed by TAV Macedonia in accordance with the conditions stated in the Concession Agreement.

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Superb operational performance carried bottom-line and FCF to positive territory.

TAV Airports Holding announced €6.9 million profit in 1H10 versus €2.5 million loss in the first half of 2009.

Financial Results

Highlights of the first half of 2010

Construction revenue and construction expenditure are excluded and guaranteed passenger fee revenues from airports in Ankara and Izmir areincluded while computing the operational performance in the explanations below. Figures in parentheses refer to the reported figures in IFRSreport.

The number of passengers using airports operated by TAV increased by 13% to 21.3 million in 1H10. According to TurkishState Airports Authority (DHMI) figures, the number of passengers in international terminal of Istanbul Ataturk Airport alsoshowed a similar trend, increasing by 13% YoY to 9.3 million in 1H10.

0.9

1.1

1.3

1.5

1.7

1.9

2.1

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

2010 2009 2008


(in mn €, unless stated otherwise)* 1H10 1H09 ∆ y-o-y 2Q10 1Q10

Revenues** 351.3 280.0 25% 211.3 139.9

EBITDA** 85.4 56.3 52% 67.8 17.6

EBITDA** margin (%) 24.3% 20.1% 4.2 ppt 32.1% 12.6%

EBITDAR** 146.0 126.3 16% 99.5 46.4

EBITDAR** margin (margın) 41.6% 45.1% -3.6 ppt 47.1% 33.2%

Net Income (Loss) 6.9 (2.5) nm 22.6 (15.7)

Cash flow from operations 64.5 6.5 887% 104.6 (40.1)

Capex (59.6) (200.1) -70% (34.9) (24.7)

Free Cash Flow 4.9 (193.6) nm 69.7 (64.8)

Shareholders’ Equity 418.5 324.6 29% 418.5 352.4

Net Debt 932.3 972.0 -4% 932.3 996.8

Average number of employees 16,011 11,775 36% 17,810 14,212

Number of passengers (mn) 21.3 18.8 13% 11.9 9.4

- International 12.6 11 15% 7.4 5.2

- Domestic 8.7 7.8 12% 4.5 4.2

Duty free spend per pax (€)*** 14.6 15.5 -6% 13.8 15.8

* 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

*** Commencement of Macedonia operations diluted duty-free spend per pax in 2Q10 and 1H10.

Source: TAV Airports Holding, DHMI, TAV Tunisie, TAV Macedonia, Georgian Aviation Authority

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Adjusted revenues increased by 25% to €351 million in 1H10 from €280 million in1H09, on the back of organic and inorganic growth. Passengers served at the existingairports surged by 13%, while TGS and NHS commenced their operations as of January1st and Macedonia operations were taken over as of March 1st. Depreciation of the Euroagainst other currencies also supported the top-line growth, given the increase of USDand TL denominated revenues in Euro terms, the functional currency.

The weight of aeronautical revenues (including guaranteed passenger fee revenuesfrom airports in Ankara and Izmir) in total operating income has increased from 41% in1H09 to 43% in 1H10, with higher contribution from ground handling with thecommencement of TGS operations. Second revenue contribution comes from duty-freeservices with 31%, followed by other revenues accounting for 26%.

Adjusted EBITDA surged by 52% to €85.4 million in 1H10 from €56.3 million in 1H09, implying respective 24.3% and 20.1%margins in 1H10 and 1H09. Strong operational leverage and the decline in the concession rent in Euro terms supported EBITDAgrowth.

Adjusted EBITDAR increased by 16% to €146.0 million in 1H10, staying behind the growth in EBITDA, mainly because of thedecline of the concession rent payment in Euro term.

As bottom line turned positive €6.9 million in 1H10 from negative €2.5 million in 1H09, net profit attributable to the owners of thecompany in 1H10 was €8.5 million compared to a net loss of €2.1 million in 1H09 according to IFRS financial statements.


1H101H09

85.4

56.3

EBITDA (mn €)

52%

1H101H09

6.9

(2.5)

Net Profit/(Loss) (mn €)

1H101H09

351.3

280.0

Revenues (mn €)

25%

43% 41%

31% 35%

26% 24%

1H10 1H09

Other revenues

Duty-free revenues

Aeronautical revenues

With the €40 million cash proceeds from TAV Tunisie stake sale to PAIDF, net debt at the holding company level decreased from €72million at the end of March 2010 to €44 million at the end June 2010. Accordingly, consolidated net debt became €932 million as ofJune 30th, 2010 versus €997 million at the end of March 31st 2010 and €972 million at the end of June 09.

Tunisia Enfidha Airport construction had depressed the free cash flow in the negative territory throughout 2009. With thecompletion of Tunisia investment and commencement of operations at the airport, free cash flow (net cash provided from operatingactivities – capex) turned positive to €4.9 million in 1H10 from minus €193.6 million in 1H09.

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Revenue breakdown (1H10) Revenue Breakdown (1H09)

Cost Breakdown (1H10) Cost Breakdown (1H09)


EBITDA Breakdown (1H10) EBITDA Breakdown (1H09)

Duty-free, 31%

Aviation, 25%

Ground Handling,

19%

F&B, 6%

Others, 20%

Duty-free, 35%

Aviation, 25%

Ground Handling,

17%

F&B, 6%

Others, 18%

catering, 3%

duty-free inventory sold, 10%

services rendered,

6%

personnel, 34%

concession rent, 21%

D&A, 9%

others, 17%

catering, 3%

duty-free inventory sold, 11%

services rendered,

6%

personnel, 30%concession

rent, 29%

D&A, 8%

others, 14%

TAV Istanbul ,

53%Other

Airports, 24%

ATU , 7%

BTA , 3%HAVAŞ ,

12%

TAV Istanbul ,

45%

Other Airports,

20%

ATU , 11%

BTA , 5%

HAVAŞ , 16%

Other services,

2%

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Overview of the period

Adjusted revenues increased by 25% to €351 million in 1H10 from €280 million in 1H09, on the back of organic andinorganic growth. Passengers served at the existing airports surged by 13%, while TGS and NHS commenced their operationsas of January 1st and Macedonia operations were taken over as of March 1st. Depreciation of Euro against other currenciesalso supported the growth in the top-line, as USD and TL denominated revenues increased in Euro terms, the functionalcurrency.

Our income stream is hard currency, based primarily in Euro and U.S. dollars, with aviation operations (which includesground handling), accounting for 43% of total operating income and non-aviation operations accounting for 57% of totaloperating income in 1H10.

Aviation income (excluding ground handling income) amounted €87million in 1H10, versus €69 million in 1H09. In IFRIC 12 application, totalguaranteed passenger fee revenues from Ankara Esenboga Airport (€7.2million) and Izmir Adnan Menderes Airport (€5.4 million) in 1H10 areexcluded from the P&L. However we included these revenues in aviationrevenues throughout our announcement and presentations.

Sales of duty free goods increased by 11% from €66 million in 1H09 to €74 million in 1H10 on the back of the strongpassenger growth. Average per passenger spending decreased by 6% YoY from €15.5 in 1H09 to €14.6 in 1H10, mainly due todilutive impact of commencement of Macedonia operations. Per passenger spend averaged €10.9 at Izmir Adnan Menderes(1H09: €10.8) and €14.2 at Ankara Esenboga Airports (1H09: €14.7). Due to the dilutive impact of increasing transferpassengers, average per passenger spending declined to €16.0 in 1H10 from €16.5 in 1H09 at Istanbul Ataturk Airport (dutyfree revenues divided by the number of international passengers including transfer passengers). Due to the limitations onduty free purchases set by the Undersecretariat of Customs, effective from October 2009, our duty free sales remainedslightly below the passenger growth.


43% 41%

57% 59%

1H10 1H09

Non-aeronautical revenues

Aeronautical revenues

(€ mn) 1H10 1H09 Change (%) 2Q10 1Q10

Sales of duty free goods 73.6 66.1 11% 41.1 32.5

Aviation income 86.7 69.0 26% 52.0 34.7

Ground handling income 66.1 46.6 42% 45.0 21.1

Commission from duty free sales 34.2 31.3 9% 19.1 15.1

Catering services income 20.5 17.0 20% 11.2 9.3

Other operating revenue 70.2 49.9 41% 43.0 27.2

Total operating revenue 351.3 280.0 25% 211.3 139.9

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Ground handling income increased by 42% to €66 million in 1H10 from €47 million in 1H09. Commencement of TGSoperations (serving THY aircraft at Istanbul, Ankara, Izmir, Antalya and Adana airports) propped up the ground handlingrevenues. Yet, it is important to note that the number of aircrafts served by HAVAŞ increased by 21% YoY to 47K, excluding THYflights served by TGS in 1H10 and THY flights served by Havas at Istanbul Ataturk Airport in 1H09 and turned over to TGS at thebeginning of 2010. TGS served 63K flights during the same period, as compared to 41K THY flights served at Istanbul AtaturkAirport by Havas in 1H09.

Commission from sales of duty free goods increased by 9% from €34 million in 1H10 to €31 million in 1H09.

Catering service income, mainly denominated in TL, surged by 20% €21 million in 1H10 to €17 million in 1H09.

Other operating income increased by 41% from €50 million in 1H09 to €70 million in 1H10. This increase primarily reflected theinsurance income (€7.9 million) stemming from the trigeneration plant in Istanbul, as well as the increase of bus service, car parkand lounge revenues.

Note that, TAV Airports has not recorded any gain/loss from the sales of Havaş and TAV Tunisie, as the Group complied with theamendment in IAS 27, which requires accounting of changes in ownership interests in a subsidiary under equity unless the controlchanges.




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(€ million) 1H10 1H09 Change (%) 2Q10 1Q10

Cost of catering inventory sold 8.0 6.5 22% 4.4 3.6

Cost of duty free inventory sold 29.6 26.4 12% 16.5 13.0

Cost of services rendered 18.0 14.1 28% 10.9 7.2

Personnel expenses 101.1 72.9 39% 52.3 48.8

Concession rent expenses 60.5 70.1 -14% 31.7 28.9

Depreciation and amortisation expenses 27.7 18.4 51% 15.3 12.4

Other operating expenses 48.6 33.6 45% 27.7 20.9

Total Operating Expenses 293.6 242.0 21% 158.8 134.7

38.8K

46.8K

1H09 1H10

HAVAS Only

21%

40.7

63.2

1H09* 1H10

TGS

55%

* THY flights served by Havaş at Istanbul Ataturk Airport in 1H09.

79.5

110.0

1H09 1H10

HAVAS+ TGS

38%

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Operating expenses increased by 21% from €242 million in 1H09 to €294 million in 1H10. This was primarily the result ofincrease in personnel expenses and depreciation and amortization expenses with the commencement of new operations(Enfidha Airport as of Dec 2009, NHS and TGS as of January 2010 and TAV Macedonia as of March 2010.)

Concession rent expenses decreased by 14% to €61 million in 1H10, because of the decline in rent payment for IstanbulAtatürk Airport in Euro terms. Concession rent expenses principally consists of payments to DHMI under the terms of theIstanbul Ataturk Airport lease agreement and renovation of the domestic terminal (total: €56.9 million in 1H10) andpayment made to Tunisian Airports and Civil Aviation Authority (OACA) (€2.9 million in 1H10) based on a predeterminedpercentage of revenues derived from Monastir (operational as of January 1, 2008) and Enfidha Airports (operational as ofDecember 2009). While the concession payment of Istanbul Ataturk Airport is made in USD terms at the beginning of eachyear, due to amortization schedule of the payment, Istanbul Ataturk Airport’s concession decreased by 14% from €65million in 1H09 to €57 million in 1H10.

Cost of duty-free inventory sold increased by 12% to €30 million in 1H10, as cost of inventory sold as a % of duty-freerevenues stayed flat year-on-year.

Cost of catering inventory sold increased by 22% from €7 million in 1H09 to €8 million in 1H10, in line with the cateringrevenue growth.

Personnel expense increased by 39% from €73 million in 1H09 to €101 million in 1H10, with new operations (TGS, NHSand commencement of operations at Enfidha Airport and TAV Macedonia) and 36% increase in the average number ofemployees in 1H10 compared to 1H09.

Cost of services rendered increased by 28% from €14 million in 1H09 to €18 million in 1H10. Cost of services renderedprincipally consists of the consolidated portion of ATU, BTA, TAV O&M and Havaş’ operating expenses.

Depreciation and amortization expense increased by 51% from €18 million in 1H09 to €28 million in 1H10, mainly dueto new operations particularly Enfidha Airport in Tunisia.

Other operating expenses increased by 45% from €34 million in 1H09 to €49 million in 1H10, mainly due to theimpairment loss recognised (€6.6 million) related with trigeneration plant in Istanbul.


(€ million) 1H10 1H09 ∆ y-o-y 2Q10 1Q10

Operating profit * 57.7 37.9 52% 52.5 5.2

EBITDA** 85.4 56.3 52% 67.8 17.6

EBITDA margin 24% 20% 4.2 ppt 32% 13%

EBITDAR*** 146.0 126.3 16% 99.5 46.4

EBITDAR margin 42% 45% -3.6 ppt 47% 33%

* ignoring net effect of construction revenue and construction expenditure

** profit (loss) adjusted for income taxes, finance income and expenses and depreciation & amortization expense

*** EBITDA before concession rent payment

Note: Adjusted figures include guaranteed passenger fee revenues from airports in Ankara and Izmir

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Adjusted operating profit (ignoring net effect of construction revenue and construction expenditure) increased from €38 million in 1H09 to €58 million in 1H10, with an increase of 52% YoY.

Adjusted EBITDA, which we define as profit (loss) adjusted for income taxes, finance income and expenses and depreciation & amortisation expense, surged by 52% and amounted €85 million in 1H10, which was €56 million in 1H09.

Adjusted EBITDAR, which we define as EBITDA before concession rent payment, increased by 16% from €126 million in 1H09 to €146 million in 1H10.

Net finance expenses decreased from €31 million in 1H09 to €30 million in 1H10. TAV recorded translation gain of €4.3 million in 1H10 versus translation loss of €3.6 million in 1H10. With the commencement of Enfidha Airport operations, TAV Tunisie started to book finance expenses, which had been capitalized before.




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(€ million) 1H10 1H09 Change 2Q10 1Q10

Finance income 14.0 7.9 77% 13.1 0.9 Finance costs (44.0) (38.6) 14% (27.2) (16.7)

Translation gain/loss 4.3 3.9 9% 7.9 (3.6)Net finance income/(Expense) (29.9) (30.6) -2% (14.1) (15.8)

Profit/(Loss) before income tax 15.4 6.3 146% 30.7 (15.4)

Income tax expense (8.5) (8.7) -3% (8.2) (0.3)

Profit/(Loss) for the period 6.9 (2.5) nm 22.6 (15.7)

Attributable to Equity holders of the Company 8.5 (2.1) nm 23.8 (15.3)Non-controlling interest (1.6) (0.4) 334% (1.3) (0.4)

Income tax benefit (expense) consists of deferred tax and corporate taxes. Current income tax expense was €22 million in 1H10,compared to €4 million in 1H09, mainly stemming from TAV Istanbul.

With the recognition of previously unrecognized investment incentives of TAV Esenboga and TAV Izmir, TAV recorded deferred taxbenefits of €13 million in 1H10 as compared to deferred tax expense of €5 million in 1H09. Accordingly, total income tax expenseamounted €8 million in 1H10 versus €9 million in 1H09.

Income Tax (€ million) 1H10 1H09 Change 2Q10 1Q10

Current period tax expense 21.6 4.0 442% 14.5 7.1

Deferred tax expense (13.1) 4.7 nm (6.3) (6.8)

Tax income/expense 8.5 8.7 -3% 8.2 0.3

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Net profits attributable to the owners of the company for 1H10 is realized as €8.5 million compared to a net loss of €2.1 million in1H09 according to IFRS financial statements. Non-controlling interest reflects the allocation of profit / losses held by the non-controlling interest and amounted €-1.6 million in 1H10.

Summary Cash Flow StatementNet cash flow provided from operating activities

During the first half of 2010, we generated €65 million net cash in operating activities as compared to €7 million cash generated in1H09. Cash generated from operations before changes in working capital items was €143 million for first half of 2010 versus €130million for first half of 2009.


(Audited) 1H10

(Audited) 1H09

CASH FLOWS FROM OPERATING ACTIVITIES Profit / (Loss) for the period 6.9 (2.5)Adjustments for:

Amortisation of airport operation right 16.0 9.5 Depreciation of property and equipment 9.1 6.6 Amortisation of intangible assets 2.7 2.3 Amortisation of prepaid concession rent 60.5 70.1 Provision for employment termination benefits 2.3 1.9 Provision set for doubtful receivables 0.3 0.1 Provision set for tax penalties - 0.4 Other provisions released (0.1) (0.0)Discount on receivables and payables, net 0.0 0.2 Gain on sale of property and equipment (0.1) (0.1)Impairment of property and equipment 6.6 -Provision set for unused vacation 0.9 0.7 Provision set / (released) for slow moving inventory 0.1 (0.0)Accrued insurance income (7.9) -Income accrual (4.5) -Interest income (5.6) (5.5)Interest expense on financial liabilities 39.9 24.6 Income tax expense 8.5 8.7 Discount income from concession receivable (4.0) (2.4)

Unrealised foreign exchange differences on balance sheet items 11.6 15.3 Cash flows from operating activities 143.0 129.8

Change in trade receivables (18.8) (13.6)Change in non-current trade receivables 14.3 13.3 Change in inventories (1.6) 0.2 Change in due from related parties (5.3) 1.3 Change in restricted bank balances 63.5 44.3 Change in other receivables and current assets 7.6 11.9 Change in trade payables 4.4 (0.4)Change in due to related parties (3.5) (41.5)Change in other payables and provisions 0.3 (2.6)Change in other long term assets 5.8 1.4 Additions to prepaid concession expenses (97.5) (104.5)

Cash provided from operations 112.2 39.8 Income taxes paid (9.1) (1.2)Interest paid (37.7) (31.4)Retirement benefits paid (0.9) (0.7)

Net cash provided from operating activities 64.5 6.5

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Net Cash flow generated from investing activities

In 1H10, TAV generated €85 million net cash from investing activities on the back of declining capital expenditure with thecompletion of Enfidha Airport construction, as well as €102 million cash proceeds from Havas sale and €40 million cash proceedsfrom TAV Tunisie stake sales. TAV had undertaken €200 million capex in 1H09, mainly for Enfidha Airport versus €60 millioncapex spend for projects in 1H10.

Net Cash flow from financing activities

Our cash flow from financing activities is mainly related to bank loans and project finance loans and the associatedrepayments. In the first quarter of 2010, HAVAŞ Holding signed a loan agreement of around €60 million to purchase HAVAŞfrom TAV Airports. On the other hand, TAV Holding reduced its indebtness with HAVAŞ and TAV Tunisie stake sales repayingits loans worth of €107million. In the first half of 2009, TAV had generated €184 million of cash from financing activities,which principally included the project finance facility of TAV Tunisie and the €57 million rights issue.


CASH FLOWS FROM FINANCING ACTIVITIES 1H10 1H09

New borrowings raised 113.1 231.6

Repayment of borrowings (174.8) (116.7)

Change in restricted bank balances (24.7) 11.7

Non-controlling interest change (58.2) (0.1)

Change in revaluation surplus and translation reserves 6.1 -

Addition to / (repayment of) finance lease liabilities 0.5 (0.1)

Increase in share premium - 0.1

Increase in share capital - 57.5

Net cash (used in) / provided from financing activities (138.0) 184.0

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 12.0 (4.1)

CASH AND CASH EQUIVALENTS AT 1 JANUARY 31.6 20.7

CASH AND CASH EQUIVALENTS AT 30 JUNE 43.6 16.6

CASH FLOWS FROM INVESTING ACTIVITIES 1H10 1H09

Interest received 4.4 5.1

Proceeds from sales of non-controlling interest in subsidiaries 141.7 -

Proceeds from sale of property and equipment and intangible assets 2.3 0.3

Acquisition of property and equipment (45.4) (13.2)

Additions to airport operation right (13.7) (186.4)

Acquisition of joint venture net of cash acquired (3.2) -

Acquisition of intangible assets (0.5) (0.5)

Net cash provided from / (used in) investing activities 85.4 (194.7)

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Free Cash FlowFree cash flow (net cash provided from operating activities – capex) realized as €4.9 million in 1H10 versus negative €194 million in1H09, with the decrease in capex with the completion of Tunisia Enfidha Airport construction and stronger cash flow fromoperations . TAV made €60 million capex in 1H10 versus €200 million capex in 1H09.

Net Debt

Deleveraging process initiated at the beginning of 2009 completed with 18% stake sale to PAIDF in June 2010. With the €40 millioncash proceeds from TAV Tunisie sale, net debt at the holding company level decreased from €200 million at the end of 2008 to €44million at the end of June 2010. Consolidated net debt realized at €932 million as of June 30, 2010.

Maturity Profile of Financial Debt


(€ million) 1H10 % FY09 %On demand or within one year 142 11% 197 15%In the second year 162 13% 147 11%In the third year 126 10% 133 10%In the fourth year 118 10% 119 9%In the fifth year 118 10% 106 8%After five years 575 46% 584 45%

1,242 100% 1,286 100%

Net Debt (eop, € mn) 1H10 1Q10 FY09

Airports 805 851 778

Istanbul 264 309 241

Ankara 112 114 119

Izmir 40 44 46

Tunisia 341 342 335

Gazipasa 16 12 9

Tbilisi 30 30 30

Batumi (0) 0 0

Macedonia 3 0 0

Services 127 146 163

ATU (50%) 22 22 17

BTA (4) 2 2

Havas 70 54 (9)

Others 39 67 152

Total 932 997 941

(€ million) 1H10 1H09

Cash flow provided operating activities 64.5 6.5

- Capex for property and equipment (45.4) (13.2)

- Capex for investment in airport operation right (13.7) (186.4)

- Capex for intangible assets (0.5) (0.5)

Free Cash Flow (FCF) 4.9 (193.6)

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Number of Employees

Due to transition of HAVAŞ personnel to TGS, HAVAŞ personnel figure experienced a steep decline at 2009 year-end. With thecommencement of TGS operations as of January 1st 2010, a similar increase was experienced. Commencement of operations atEnfidha Airport in Tunisia and takeover of operations at Ohrid&Skopje Airports in Macedonia also boosted the employee numbers.

Number of Employees (eop) 1H10 4Q091H10/

4Q09 ∆ 1H09

1H10/1H09 ∆

TAV ISTANBUL 2,158 1,996 162 2,008 150

TAV ESENBOĞA 836 813 23 827 9

TAV İZMİR 452 444 8 445 7

TAV TUNISIE 686 507 179 507 179

TAV GAZİPAŞA 17 17 0 0 17

TAV Georgia 701 702 -1 605 96

TAV Macedonia 763 0 763 0 763

HAVAŞ 9,263 3,040 6,223 5133 4,130

ATÜ 1,201 1,103 98 1,039 162

BTA 1,562 1,382 180 1,357 205

TAV HOLDING 146 114 32 120 26

TAV O&M 195 223 -28 179 16

TAV IT 131 115 16 120 11

TAV Security 218 263 -45 173 45

TOTAL 18,329 10,719 7,610 12,513 5,816


Sensitivity Analysis

A 10 percent strengthening/weakening of the EUR against the following currencies at 30 June 2010 and 31 December 2009 would have increased/decreased “equity” and “profit/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 FY2009.

Equity Profit or lossStrengthening Weakening Strengthening Weakening

of EUR of EUR of EUR of EUR

30-Jun-10USD (29.7) 36.3 (2.7) 2.7 TRL - - (6.0) 6.0 Other - - (0.4) 0.4 Total (29.7) 36.3 (9.1) 9.1

31-Dec-09USD (26.0) 31.8 (0.2) 0.2 TRL - - (4.7) 4.7 Other - - (1.5) 1.5 Total (26.0) 31.8 (6.5) 6.5

Based on the Group’s current borrowing profile, a 50 basis points increase in Euribor or Libor would have resulted inadditional annual interest expense of approximately EUR 3.7 million on the Group’s variable rate debt when ignoring effect ofderivative financial instruments. EUR 1.9 million of the exposure is hedged through IRS contracts. Therefore, the net exposureon income statement would be EUR 1.8 million. A 50 basis points increase in Euribor or Libor would have resulted an increasein hedging reserve in equity approximately by EUR 28.4 million and a 50 basis points decrease in Euribor or Libor would haveresulted an decrease in hedging reserve in equity approximately by EUR 29.7 million.

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(€ million) Revenues EBITDA (*) EBITDA (*) Margin Net Debt

Airports 212 70 33% 805 Istanbul 152 105 69% 264 Ankara 17 8 46% 112 Izmir 12 5 44% 40 Tunisie 16 7 44% 341 Gazipasa 0 (1) nm 16 Tbilisi & Batumi 10 4 44% 30 Macedonia 5 1 12% 3

Services 208 16 8% 127 ATU (50%) 76 6 7% 22 BTA 33 3 10% (4)HAVAŞ 72 11 15% 70 Others 28 (4) nm 39

Total 420 86 20% 932 Eliminations (68) (0)

Consolidated 351 85 24% 932

* EBITDAR for TAV Istanbul,TAV Tunisie and TAV Macedonia

Note: Figures are adjusted by including guaranteed passenger fee revenues from airports in Ankara and Izmir

TAV Airports Revenues

(€ million) 1H10 1H09 Change

Airports 212 167 27%

Istanbul 152 124 23%

Others 60 43 40%

Services 208 170 22%ATU (50%) 76 67 13%

BTA 33 27 22%

HAVAŞ 72 52 38%

Others 28 23 22%

Total 420 337 25%

Eliminations (68) (57)

Consolidated 351 280 25%

TAV Airports EBITDA

(€ million) 1H10 1H09 Change

Airports 70 36 94%

Istanbul 48 25 92%Others 22 11 100%

Services 16 19 -16%

ATU (50%) 6 6 0%

BTA 3 3 0%

HAVAŞ 11 9 22%

Others (4) 1 nm

Total 86 55 56%Eliminations (0) 1

Consolidated 85 56 52%


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TAV Airports Holding Selected Financials 1H10 1H09(Amounts expressed in mn Euro)

Construction revenue 13.5 197.6Total operating income 351.3 280.0

Sales of duty free goods 73.6 66.1Aviation income 86.7 69.0Ground handling income 66.1 46.6Commission from sales of duty free goods 34.2 31.3Catering services income 20.5 17.0Other operating income 70.2 49.9

Construction expenditure (13.2) (188.3)Operating expenses (293.6) (242.0)

Cost of catering inventory sold (8.0) (6.5)Cost of duty free inventory sold (29.6) (26.4)Cost of services rendered (18.0) (14.1)Personnel expenses (101.1) (72.9)Concession rent expenses (60.5) (70.1)Depreciation and amortization expense (27.7) (18.4)Other operating expenses (48.6) (33.6)

Operating profit 45.3 36.9Finance income 14.0 7.9Finance expenses (44.0) (38.6)Profit before income tax 15.3 6.3

Income tax expense (8.5) (8.7)Profit for the period from continuing operations 6.9 (2.5)Attributable to: Owners of the Company 8.5 (2.1)Non-controlling interest (1.6) (0.4)

6.9 (2.5)

Other Financial Data:Adjusted EBITDA * 85.4 56.3Adjusted EBITDAR * 146.0 126.3

Summary Cash Flow Data:

Net cash provided by (used in):Operating activities 64.5 6.5Investing activities 85.4 (194.7)Financing activities (138.0) (184.0)

Summary Balance Sheet Data: 30-June-10 31-Dec-09Cash and cash equivalents 47.0 34.0 Restricted bank balances 267.0 313.8 Total assets 2,043.5 1,923.1 Bank loans 1,246.3 1,288.7 Total liabilities 1,527.3 1,510.1 Total equity 516.2 413.0 Net debt 932.3 940.8

* Ignoring net effect of construction revenue and construction expenditure and including guaranteed passenger revenues from airports in Ankara and Izmir

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Income Statement (€ mn) 1H10 1H09 2Q10 1Q10

Construction revenue 13,475,616 197,582,214 4,423,959 9,051,657 Operating revenue 315,994,101 257,799,386 187,476,196 128,517,905

Other operating income 22,607,281 11,854,663 16,192,815 6,414,466 Construction expenditure (13,192,427) (188,307,237) (4,370,886) (8,821,541)Cost of catering inventory sold (7,985,730) (6,534,753) (4,413,770) (3,571,960)Cost of duty free inventory sold (29,572,673) (26,435,425) (16,549,288) (13,023,385)Cost of services rendered (18,042,859) (14,111,887) (10,856,652) (7,186,207)Personnel expenses (101,102,627) (72,942,052) (52,285,126) (48,817,501)Concession rent expenses (60,530,636) (70,064,429) (31,679,893) (28,850,743)Depreciation and amortisation expense (27,720,232) (18,353,236) (15,334,884) (12,385,348)Other operating expenses (48,610,201) (33,604,201) (27,715,059) (20,895,142)Operating profit 45,319,613 36,883,043 44,887,412 432,201

Finance income 14,022,032 7,940,477 13,094,587 927,445 Finance costs (43,970,732) (38,569,562) (27,241,915) (16,728,817)Net finance costs (29,948,700) (30,629,085) (14,147,328) (15,801,372)

Profit before income tax 15,370,913 6,253,958 30,740,084 (15,369,171)

Income tax expense (8,496,807) (8,722,659) (8,163,720) (333,087)Profit / (loss) for the period 6,874,106 (2,468,701) 22,576,364 (15,702,258)

Profit / (loss) attributable to:Owners of the Company 8,498,416 (2,094,162) 23,839,833 (15,341,417)Non-controlling interest (1,624,310) (374,539) (1,263,469) (360,841)Profit / (loss) for the period 6,874,106 (2,468,701) 22,576,364 (15,702,258)

Total comprehensive income / (loss)attributable to:Owners of the Company 31,983,289 (26,947,469) 46,163,668 (14,180,379)Non-controlling interest (9,956,662) (612,932) (9,125,713) (830,949)Total comprehensive income / (loss)

22,026,627 (27,560,401) 37,037,955 (14,180,379)for the period

Weighted average number of shares outstanding 363,281,250 329,644,099 363,281,250 363,281,250

Income / (loss) per share – basic 0.023 (0.006) 0.066 (0.042)

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ASSETS (eop, € mn) 1H10 FY09

Property and equipment 147,574,996 117,527,566

Intangible assets 39,494,929 41,320,152

Airport operation rights 725,765,019 723,041,011

Other investments 24,950 24,238

Goodwill 154,561,157 151,402,835

Prepaid concession expenses 142,555,145 107,413,971

Trade receivables 124,134,230 134,457,502

Due from related parties 125,000 -

Other non-current assets 3,169,287 8,930,598

Deferred tax assets 65,793,842 54,254,039

Total non-current assets 1,403,198,555 1,338,371,912

Inventories 12,989,673 11,403,317

Prepaid concession expenses 122,666,129 117,275,560

Trade receivables 80,527,466 62,044,641

Due from related parties 15,627,094 10,482,379

Derivative financial instruments 54,762,782 6,390,781

Other receivables and current assets 39,771,121 29,287,322

Cash and cash eHuivalents 47,010,509 34,010,922

Restricted bank balances 266,989,021 313,849,601

Total current assets 640,343,795 584,744,523

TOTAL ASSETS 2,043,542,350 1,923,116,435

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EQUITY & LIABILITIES (eop, € mn) 1H10 FY09

EQUITYShare capital 162,383,978 162,383,978Share premium 220,286,470 220,286,470Legal reserves 19,450,763 18,385,795Other reserves 14,622,932 -Revaluation surplus 2,153,521 2,324,325Purchase of shares of entities under common control 40,063,860 40,063,860Cash flow hedge reserve (42,388,236) (59,776,657)Translation reserves 4,005,775 (2,056,517)Accumulated losses (2,064,964) (9,168,016)

Total equity attributable to equity holders of the Company 418,514,099 372,443,238

Non-controlling interest 97,678,108 40,555,777

Total Equity 516,192,207 412,999,015

LIABILITIESLoans and borrowings 1,100,614,338 1,089,524,346Reserve for employee severance indemnity 6,562,632 4,645,483Due to related parties 20,255,148 19,082,385Deferred income 19,964,266 14,339,463Deferred tax liabilities 6,107,380 7,335,962Total non-current liabilities 1,153,503,764 1,134,927,639

Bank overdraft 3,381,614 2,379,933Loans and borrowings 142,293,099 196,758,985Trade payables 37,310,822 29,306,087Due to related parties 7,590,927 12,285,718Derivative financial instruments 126,047,281 85,400,809Current tax liabilities 13,897,278 1,391,675Other payables 35,621,710 39,264,452Provisions 3,661,013 2,695,918Deferred income 4,042,635 5,706,204Total current liabilities 373,846,379 375,189,781

Total Liabilities 1,527,350,143 1,510,117,420

TOTAL EQUITY AND LIABILITIES 2,043,542,350 1,923,116,435

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(Audited) 1H10 (Audited) 1H09

CASH FLOWS FROM OPERATING ACTIVITIES

Profit / (Loss) for the period 6,874,106 (2,468,701)

Adjustments for:

Amortisation of airport operation right 15,961,616 9,504,940

Depreciation of property and equipment 9,055,433 6,585,058

Amortisation of intangible assets 2,703,183 2,263,238

Amortisation of prepaid concession rent 60,530,636 70,064,429

Provision for employment termination benefits 2,251,657 1,871,926

Provision set for doubtful receivables 299,335 82,983

Provision set for tax penalties - 444,174

Other provisions released (78,815) (31,767)

Discount on receivables and payables, net 11,442 163,762

Gain on sale of property and equipment (92,640) (53,126)

Impairment of property and equipment 6,638,910 -

Provision set for unused vacation 914,012 670,904

Provision set / (released) for slow moving inventory 62,194 (4,726)

Accrued insurance income (7,903,142) -

Income accrual (4,541,462) -

Interest income (5,625,555) (5,498,222)

Interest expense on financial liabilities 39,906,193 24,633,561

Income tax expense 8,496,807 8,722,659

Discount income from concession receivable (4,006,060) (2,397,436)

Unrealised foreign exchange differences on balance sheet items 11,582,584 15,267,252

Cash flows from operating activities 143,040,434 129,820,908

Change in trade receivables (18,795,535) (13,588,725)

Change in non-current trade receivables 14,329,332 13,322,113

Change in inventories (1,648,549) 230,764

Change in due from related parties (5,269,715) 1,297,949

Change in restricted bank balances 63,495,746 44,332,926

Change in other receivables and current assets 7,586,360 11,934,544

Change in trade payables 4,406,057 (386,196)

Change in due to related parties (3,522,028) (41,496,877)

Change in other payables and provisions 318,492 (2,617,601)

Change in other long term assets 5,761,310 1,413,304

Additions to prepaid concession expenses (97,461,768) (104,458,367)

Cash provided from operations 112,240,136 39,804,742

Income taxes paid (9,081,461) (1,153,026)

Interest paid (37,700,273) (31,415,562)

Retirement benefits paid (908,811) (698,157)

Net cash provided from operating activities 64,549,591 6,537,997

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(Audited) 1H10 (Audited) 1H09

CASH FLOWS FROM INVESTING ACTIVITIES

Interest received 4,374,604 5,133,579

Proceeds from sales of non-controlling interest in subsidiaries 141,668,682 -

Proceeds from sale of property and equipment and intangible assets 2,272,279 294,592

Acquisition of property and equipment (45,401,147) (13,212,493)

Additions to airport operation right (13,747,090) (186,447,035)

Acquisition of joint venture net of cash acquired (3,241,766) -

Acquisition of intangible assets (485,618) (450,514)

Net cash provided from / (used in) investing activities 85,439,944 (194,681,871)

CASH FLOWS FROM FINANCING ACTIVITIES

New borrowings raised 113,125,249 231,583,202

Repayment of borrowings (174,816,675) (116,660,449)

Change in restricted bank balances (24,703,318) 11,677,729

Non-controlling interest change (58,201,393) (111,061)

Change in revaluation surplus and translation reserves 6,062,292 -

Addition to / (repayment of) finance lease liabilities 542,216 (66,340)

Increase in share premium - 103,989

Increase in share capital - 57,473,711

Net cash (used in) / provided from financing activities (137,991,629) 184,000,781

NET INCREASE / (DECREASE) IN CASH AND CASH EQUIVALENTS 11,997,906 (4,143,093)

CASH AND CASH EQUIVALENTS AT 1 JANUARY 31,630,989 20,727,590

CASH AND CASH EQUIVALENTS AT 30 JUNE 43,628,895 16,584,497

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January - June

Passengers (1) 2009 2010 Change %

Ataturk Airport 13.599.139 14.955.290 10%International 8.181.778 9.284.671 13%Domestic 5.417.361 5.670.619 5%Esenboga Airport (2) 2.828.995 3.500.667 24%International 453.139 530.358 17%Domestic 2.375.856 2.970.309 25%Izmir Airport (3) 631.467 777.260 23%

DHMI TOTAL 33.209.152 39.369.698 19%

International 16.410.483 19.352.840 18%

Domestic 16.798.669 20.016.858 19%Monastir Airport (Inc. Enfidha) (4) 1.408.301 1.362.938 -3%Tbilisi Airport (5) 293.908 322.397 10%Batumi Airport (6) 20.958 31.841 52%

Macedonia (Skopje&Ohrid)(8) 268.356 302.765 13%

TAV TOTAL(9) 18.798.691 21.253.158 13%

International 10.990.755 12.595.424 15%

Domestic 7.807.936 8.657.734 11%

January - June

Air Traffic Movements (7) 2009 2010 Change %

Ataturk Airport 125.206 128.035 3%International 79.644 83.483 5%Domestic 45.562 44.552 -2%Esenboga Airport (2) 23.706 28.473 20%International 4.241 5.027 19%Domestic 19.465 23.446 20%Izmir Airport (3) 5.069 6.440 27%

DHMI TOTAL 275.528 313.859 14%

International 137.154 154.666 13%Domestic 138.374 159.193 15%Monastir Airport (Inc. Enfidha) (4) 12.010 12.069 0%Tbilisi Airport (5) 6.102 7.128 17%Batumi Airport (6) 804 814 1%Macedonia (Skopje&Ohrid)(8) 5.751 5.946 3%TAV TOTAL(9) 172.567 188.907 9%International 106.739 120.165 13%Domestic 65.828 68.742 4%Source:Turkish State Airports Authority (DHMI), Georgian Authority for Tbilisi & Batumi, TAV Tunisie for Monastir & Enfidha,TAV Macedonia for Skopje & Ohrid Airports

Note: DHMI figures for January- June 2010 are tentative. DHMI passenger figures are including transfer passengers(1) Both departing and arriving passengers, excluding transit (2) Operation commencement date: October 16, 2006

(3) International Terminal only and operation commencement date: September 13, 2006(4) Operation commencement date: January 1, 2008.Transit passengers are not included in pax numbers.(Including Enfidha Airport)

(5) Operation commencement date for new terminal: February 7, 2007

(6) Operation commencement date: May 26, 2007 (Including passenger using Hopa Terminal)(7) Commercial flights only(8) Operation commencement date: March 01, 2010(9) TAV 2009 traffic figures do not include Macedonia

TRAFFIC RESULTS


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ISTANBUL ATATURK ANKARA ESENBOGA IZMIR ADNAN MENDERES

Duration / Expiration of Operation Duration / Expiration of Operation Duration / Expiration of Operation

15 years 6 months / January 2021 16 years 7 months / May 2023 8 years 4 months / January 2015

2009 Passenger Traffic 2009 Passenger Traffic 2009 Passenger Traffic

29.757.384 6.085.126 1.667.353

2009 Commercial Flight Traffic 2009 Commercial Flight Traffic 2009 Commercial Flight Traffic

264.481 51.293 13.137

ANTALYA GAZIPASA TUNISIA ENFIDHA

Duration / Expiration of Operation Duration / Expiration of Operation

25 years / July 2034 40 years / May 2047

Distance between Gazipaşa Airport and some major touristic destinations

km

Alanya 40

Anamur 80

Manavgat 95

Side 105

Beldibi 135

Serik/Belek 143

Kundu 170

Kemer 219

Distance between Enfidha Airport and some major touristic destinations

km

Monastir (City Center) 8

Sousse 30

Mahdia 42

Kairouan 92

Hammamet 103

Nabeul 110

Grombalıa 125

Tunis 154


1H091H10

14

15

10%

1H091H10

2.8

3.5

24%

1H091H10

0.6

0.8

23%

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GEORGIA TBILISI GEORGIA BATUMI TUNISIA MONASTIR

Duration / Expiration of Operation Duration / Expiration of Operation Duration / Expiration of Operation

20 years / February 2027 20 years / August 2027 40 years / May 2047

2009 Passenger Traffic 2009 Passenger Traffic 2009 Passenger Traffic

702.714 69.936 3.781.256

2009 Commercial Flight Traffic 2009 Commercial Flight Traffic 2009 Commercial Flight Traffic

13.842 1.806 30.393

MACEDONIA SKOPJE MACEDONIA OHRID

Duration / Expiration of Operation Duration / Expiration of Operation

20 years / March 2030 20 years / March 2030

2009 Passenger Traffic 2009 Passenger Traffic

599.519 36.652

2009 Commercial Flight Traffic 2009 Commercial Flight Traffic

12.117 676


1H091H10

0.27

0.30

13%

1H091H10

0.29

0.32

10%

1H091H10

0.20

0.30

52%

1H091H10

1.41

1.36

-3%

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Airport Companies

Ataturk Airport (100%)

Esenboga Airport (100%)

Adnan Menderes

Airport (100%)

Gazipasa Airport (100%)

Tbilisi (%66) & Batumi

(60%)

Monastir & Enfidha

Airport (67%)

Skopje & Ohrid (100%)

Service Companies

ATÜ (50%)

BTA (67%)

HAVAS (65%)

TAV O&M (100%)

TAV IT (97%)

TAV Security (67%)

TGS %50)

North Hub

Services

(%50)

TAV Airports Holding

1. Tepe Insaat Sanayi A.Ş. Turkish integrated conglomerate focused on infrastructure and construction

2. Akfen Holding A.Ş.Holding company operating in the construction, tourism, insurance and energy sector

3, Sera Yapi Endustrisi A.Ş.Family of Dr. Sani Sener, CEO of TAV Airports

4. Other Non-floating

5. Other Free Float

Shareholder Structure Founding Shareholders

(1)26,06%

(2)26,12%

(3)4,46%

(4)3,52%

(5)39,84%

33

For further information, please visit http://ir.tav.aero,e-mail [email protected] call +90-212-463 3000 (x2120 – 2122 – 2123 – 2124 )

TAV Airports Holding Co.Istanbul Ataturk Havalimanı Dış Hatlar Terminali (A Kapısı VIP Yanı)34149 Yesilkoy, Istanbul

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

Burcu GÜNHARInvestor Relations Associate [email protected] :+90 212 463 3000 / 2123Fax : +90 212 465 3100

Besim MERİÇ Investor Relations Associate [email protected] :+90 212 463 3000 / 2124Fax : +90 212 465 3100

Contact

TAV Airports Holding is the leader airport operator in Turkey with a market share of 48% as per the DHMI 2009passenger statistics including transfer passengers. TAV Airports Holding operates Istanbul Atatürk Airport (one of thebusiest in Europe), Ankara Esenboğa Domestic and International Terminals, Izmir Adnan Menderes Airport InternationalTerminal and Antalya Gazipasa Airport in Turkey, the Tbilisi and Batumi Airports in Georgia, the Monastir HabibBourguiba International Airport and the Enfidha Zine Abidine Ben Ali Airport in Tunisia and Skopje Alexander the GreatAirport and Ohrid St Paul the Apostle International Airport in Macedonia.

TAV Airports operates in other branches of airport operations as well, such as duty free sales, food and beverageservices, ground handling services, information technologies, security and operation services. TAV Airports serve 375Kflights for approximately 300 airline companies and 42 million passengers on average per year.

About TAV Airports Holding
http://ir.tav.aero/mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]

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