2009 was one of the most difficult years in the history of the airport industry. After devastating the entire world, the global financial crisis turned into a major worldwide recession in 2009. We believe there is going to be a recovery in the global economy and in the aviation industry in 2010 and beyond.

Thanks to the comprehensive measures taken by governments to counter the repercussions of the crisis which broke out in 2008, and the large-scale rescue packages that they unveiled to boost liquidity, the crisis was stopped in its tracks before worsening even further. The emerging markets are expected to gain prominence in the gradual, but long-lasting period of growth that is forecast to take hold after the global recession ends. Accordingly, the global economy is expected to grow 3% in 2010 after contracting 1% in 2009.

Registering rapid growth rates in foreign trade volume, Turkey currently has the 17th largest economy in the world. Contracting approximately 5% as of year-end 2009 due to the global economic turmoil, the Turkish economy nevertheless manifested better-than-expected crisis management performance and was one of the most noteworthy countries in this respect.

The airport industry was one of the sectors that escaped relatively unscathed from the crisis in 2009. Airline companies had a difficult year due to a rapid rise in fuel costs, as well as the major slump in demand as passenger traffic decreased 3% globally and 6% in Europe. Turkey, on the other hand, had a slightly different experience.

I am proud to share with our esteemed shareholders the fact that TAV Airports Holding's passenger traffic grew 3% and our total number of passengers for the year exceeded 42 million despite these negative data and global outlook. Passenger traffic at the International Terminal of Istanbul Atatürk Airport, the flagship operation of the Holding, increased 8%. This increase was due in large part to the young population and growing aviation industry in Turkey, as well as Istanbul Atatürk Airport becoming a major transit hub thanks to Turkish Airlines, our national flagship carrier, joining the Star Alliance network.

As in previous years, the accomplishments of the airports operated by the Holding were crowned with international awards. Istanbul Atatürk Airport was named the Center of Attraction for Transit Flights on the 2009/2010 Travel Top 50 list of Monocle, the world's most prestigious business and lifestyle magazine. Ankara Esenboğa Airport was named the Best Airport in Europe in its size category by the European region of Airports Council International (ACI Europe).

The Holding's operating profit (EBITDA) increased 39% over the previous year on a TL basis, reaching TL 294 million, and net profit surged 10-fold in 2009 to TL 111 million (EUR 51.5 million). The Holding's revenue rose 16% over the previous year, reaching TL 1.3 billion. The loyalty and dedication of TAV employees is the impetus behind this achievement. Despite the global contraction in employment, the Holding's average number of employees rose from approximately 11.3 thousand in 2008 to approximately 12.2 thousand in 2009.

The greatest accomplishment of TAV Airports Holding in 2009 was its utilization of all vehicles a company has at its disposal to boost its liquidity. These methods included generating more cash from operational cash flow, as well as raising capital from existing shareholders and asset sales. In this respect, we generated EUR 210 million of cash from our operations in 2009. We reached an agreement to sell 35% of Havas, Turkey's first and largest ground handling company, which operates in 19 airports, to İş Girişim (İş Private Equity) and HSBC Principal Investments, two powerful partners. In addition, we sold 15% of TAV Tunisie's outstanding shares to IFC, a member of the World Bank Group, increasing our capital by TL 121 million amid the crisis. Our purpose in all of these transactions was to reduce TAV Airports Holding's debt position and create additional resources.

Antalya Gazipaşa Airport and the Enfidha Airport in Tunisia were completed in 2009 and they commenced operations during the same year, while the Skopje and Ohrid airports in Macedonia will commence service in the first quarter of 2010. We expect a high level of performance from these projects, proving that we will realize a worthy return for our investments in these airports. In addition to our financial performance, we believe that environmental awareness and social responsibility are also important to ensure a sustainable world. In this respect, we continued to undertake efforts in 2009 to equip all of the Holding's operating companies with environmental-friendly technologies. In addition, in line with our belief that Turkey's future will be shaped by education, culture and the arts, we organized numerous activities and events during the year and assumed the sponsorship of many projects.

The Holding gained the trust of investors and all its stakeholders in Turkey, as well as internationally, as a company focusing on passenger satisfaction and keeping its promises while maintaining strict discipline in cost control. We will continue to work with the same determination and commitment to maintain this trust.

All the numbers stated in our Annual Report reflect the operational success of the Holding in Turkey as well as in the region. For all of our accomplishments during the year, I first of all would like to thank TAV employees, each of whom is a valued member of the TAV family. As I conclude my remarks, I also would like to express my deepest gratitude to our shareholders, customers and all of our social and economic stakeholders who help move TAV forward into the future.

Dr. M. Sani Şener
Board Member, President & CEO