TAV IT

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TAV Airports Holding Annual Report 2008
2008 at a glance
• Despite the increase in provision expenses, other
operating expenses dropped 13%, to EUR 75.8 million in
2008 from EUR 86.9 million in 2007, thanks primarily
to lower non-recurring (one time) expenses and
management consulting expenses. The largest nonrecurring
expense item registered in 2007 is the public
offering expenditures that were incurred during the first
quarter of 2007.
Adjusted operating profit (excluding construction income
and expenses, including guaranteed passenger income),
increased from EUR 46.9 million (EUR 18.3 million according
to financial statements prepared in accordance with
the IFRS) in 2007 to EUR 105.9 million (EUR 76.3 million
according to financial statements prepared in accordance
with the IFRS) in 2008.
Adjusted EBITDA reached EUR 140.8 million in 2008, an
increase from EUR 77.0 million in 2007.
Adjusted EBITDAR (adjusted EBITDA before concession rent
payments) rose 36% in 2008, to EUR 296.8 million, from
EUR 217.8 million in 2007. The EBITDAR margin increased
to 47.3% in 2008, from 42.9% in 2007, as a result of
operational leverage. 65% of the Company’s total EBITDAR
was derived from TAV Istanbul, whereas the EBITDAR
margin of TAV Istanbul was 73% in 2008.
Net finance costs increased from EUR 68 million in 2007 to
EUR 84.6 million in 2008. On the other hand, total financial
expenses rose from EUR 84.9 million in 2007 to EUR 103.0
million in 2008.
Income tax benefit (expense) consists of deferred taxes and
corporate taxes. The Company had an income tax benefit
of EUR 3.4 million in 2008, whereas it had an income tax
benefit of EUR 4.7 million in 2007. The deferred tax benefit
of TAV Airports increased from EUR 9.1 million in 2007 to
EUR 11.7 million in 2008.
The Company’s profits (losses) attributable to minority
interest reflect the profit and loss of 33.33% of TAV
Security and BTA, which amounted to EUR 0.6 million in
2008.
The Company turned a net profit of EUR 4.7 million in 2008,
after registering a net loss of EUR 43.8 million in 2007.
While the net loss attributable to TAV Airports Holding
shareholders was EUR 43.7 million in 2007, there was a
net profit of EUR 4.1 million attributable to TAV Airports in
2008, thanks to a high level of operating profit.
Consolidated Cash Flow Summary
Net cash generated from operating activities
TAV Airports generated EUR 226.3 million cash from its
operating activities in 2008 (2007: EUR 13.4 million). Cash
generated from operating activities before the change
in working capital rose from EUR 187.0 million in 2007 to
EUR 276.9 million in 2008. The Company used EUR 120.2
million in 2007 for working capital requirements, whereas it
generated EUR 29.8 million cash as a result of the change
in working capital levels.
Net cash used in investment activities
In 2008, TAV Airports used EUR 213.2 million cash for
investment activities, EUR 178.0 million of which was for
the Tunisia Enfidha Airport investment. The corresponding
figure for 2007 was EUR 196.2 million; EUR 78.5 million of
it was used for the Enfidha Airport investment, whereas
EUR 11.1 million was used for Tbilisi and Batumi airport
investments and the İzmir Adnan Menderes Airport
Domestic Terminal modernization.
Net cash generated from financing activities
Cash flows resulting from financing activities, for the most
part, are related to borrowings from banks, project finance
loans and repayments of these. During the first three
months of 2008, TAV Istanbul entered into a EUR 440
million loan agreement and refinanced its existing debt.
In 2007, there was a cash inflow of EUR 239.3 million due
to financing activities, EUR 53.7 million of which was from
stock issue at the public offering.
Free Cash Flow
Free cash flow (net cash generated from operations - cash
used in investments) in 2008 was EUR 11.7 million, while it
was minus EUR 106.9 million in 2007. Free cash flow in 2007
was negative due to the Tunisia Enfidha Airport investment
that commenced on July 24, 2007.