1

Acquisition of Bratislava and Kosice Airports

Developing the future of the regionVienna - Bratislava - Kosice

Herbert KaufmannCEO Flughafen Wien AGFebruary 2006

2

The Region Vienna – Bratislava - Kosice

Vienna

3

Competition between Regions

The Bratislava-Vienna region is expected to be the fastestgrowing region in Europe.

The competitors of the Bratislava-Vienna region include Munich, Milan, Paris, Budapest, Prague, etc.

4

Catchment Area

Criteria for the Catchment Area:• Access to the airport within

two hours by car• Easiest access to a main airport

5

Propensity to travel (trips per year per inhabitant)

0

1

2

3

4

5

6

7

8

9

Cyp

rus

Mal

ta

Irela

nd

Den

mar

k

Luxe

mbu

rg UK

Spai

n

Gre

ece

Net

herla

nds

Swed

en

Finn

land

Aust

ria

Portu

gal

Fran

ce

Ger

man

y

Belg

ium

Italy

Cze

ch R

epub

lic

Esto

nia

Hun

gary

Slov

enia

Latv

ia

Lith

uani

a

Pola

nd

Slov

akia

New EU member states

EU 15

Source: Eurostat 2004

6

Growth in Air Transport (flights flown)C

zech

Rep

ublic

New EU member states

EU 15

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

Cyp

rus

Mal

ta

Irela

nd

Den

mar

k

Luxe

mbu

rgUK

Spa

in

Net

herla

nds

Sw

eden

Finn

land

Aus

tria

Por

tuga

l

Fran

ce

Ger

man

y

Bel

giumIta

ly

Est

onia

Hun

gary

Slo

veni

a

Latv

ia

Lith

uani

a

Pol

and

Slo

vaki

a

Source: Eurostat, 2004

7

Vienna International Airport

Vienna Airport plc

- Privatised in 1992- Present ownership structure:

40% Public sector10% Employee trust50% Free float

15.9 m passengers in 2005

High dividend yield

Two runways

Airport area: 10km2

Full airport provider(including ground handling)

8

Bratislava Airport

Airport area: 477 ha

2 runways:

- Runway 13/31: 3,190m

- Runway 04/22: 2,900m

1.3m passengers in 2005

Operated by:- M.R. Stefanik Airport

Full airport provider(including ground handling)

9

Kosice Airport

1 runway:

- Runway 01/19: 3,1000m

269,885 passengers in 2005

Operated by: Letisko Kosice -Airport Kosice a.s. Full airport provider(including ground handling)

10

Passenger Growth 2000 – 2010 Bratislava-Vienna region

25

23.6

22.0

20.4

18.9

17.2

15.7

13.312.412.212.2

10

12

14

16

18

20

22

24

26

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PAX

m

11

Passenger Growth 2000 – 2010 Vienna International Airport

20.019.1

18.317.5

16.815.9

14.8

12.812.011.911.9

10

12

14

16

18

20

22

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Growth rate 2007-2010: + 4.6%

2005: + 7.3%

Forecast 2006: + 6%

PAX

m

12

Passenger Growth 2005 – 2015 Bratislava

5.0

4.5

3.7

2.9

2.1

1.30.9

0.50.40.30.3

0

1

2

3

4

5

6

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PAX

m

13

Passenger Growth 2005 – 2015 Kosice

480444

404

361

318

270

231188

161138125

0

50

100

150

200

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

PAX

thou

s.

14

Vienna & Bratislava AirportsWide-ranging opportunities for growth

2005: 17.2 million passengers: 15.9m (VIE) + 1.3m (BTS)

2010: 25 million passengers: 20m (VIE) + 5 m (BTS)

2015: 30.0 million passengers: 23m - 24m (VIE) + 6m - 7m (BTS)

• Leading position in Central Europe

• Main drivers of development- Transfer and point to point trafic- Fast growing market with little exploitation in Slovakia

15

Cooperation allows for the best development of potential

Vienna: focused on transfer hub west/east/long-haul

Bratislava: focused on point-to-point traffic:low-cost carriers and charter

,

Competitive advantages over airports like Zurich, Munich, Budapest, Prague etc.

Kosice: focused on connections to hubs like Vienna andFrankfurt and tourism

16

Linking of Vienna and Bratislava market

Express connections between Vienna City Centre – BTS Airport less than 1 hour travelling time (CAT extension by 2009)

Starting 2006:City check-in in Vienna for flights from BratislavaCity check-in in Bratislava for flights from Vienna plus bus connections

17

Consortium TwoOneThe “Airport TwoOne“ consortium consists of:

Voting rights

Flughafen Wien Aktiengesellschaft 50.1

Raiffeisen Zentralbank Österreich AG (RZB) 20.0

Penta Investment Limited 29.9

18

Key figures of the bid

Bratislava- Price 10.5 billion SKK (~EUR 275 m)- Capital contribution: 7.9 billion SKK (~EUR 203 m)- Investment programme: 9.37 billion SKK (~EUR 240 m) over the first

five yearsKošice- Price 900 million SKK (~EUR 24 m)- Capital contribution: 380 million SKK (~EUR 10 m)- Investment programme: 415.6 million SKK (~EUR 11 m) over the first

five years

19

Key figures of the bid - Bratislava

Consortium thereof VIEPurchase price 275 138 Capital contribution 204 102

Comitted investment during the first 5 years 240

- thereof capital contribution 204

- out of cash flow 36

20

Key figures of the bid - Kosice

Consortium thereof VIE

Offered purchase price 24 12 Capital contribution 10 5

Comitted investment during the first 5 years 11

- thereof capital contribution 10

- out of cash flow 1

21

Specific Expansion Projects for Bratislava Airport

22 projects have been defined for Bratislava Airport, each with an exactfinancial plan and time schedule:

Project Forecasted Costs Schedule

Existing terminal – expansion SKK 326 m (ca. € 8.4 m) 2006 - 2007

New terminal SKK 2,850 m (ca. € 73 m) 2006 - 2009

Expansion of runways SKK 1,243 m (ca. € 32 m) 2007 - 2010

Car park SKK 216 m (ca. € 5.6 m) 2006 – 2007

Further 18 projects SKK 4,735 m (ca. € 122 m) 2006 - 2010

22

Financial approach

Enterprise value (100%) of Bratislava Airport above EUR 534 mEBITDA multiple (5 years average): 23Flughafen Wien AG- 7% WACC - Debt / Equity ratio: 50:50

Bratislava shows positive results after one yearFrom 2011 onwards profit contribution of Bratislava exceeds cost of debt

23

Synergies

e.g.- Capacity management: (Construction of third runway in VIE will be

postponed up to four years- Facility management- Procurement- IT

24

Privatisation Process BTS/KSC

11 July 2005: Start of the privatisation process5 September 2005: Submission of the preliminary bid15 September 2005: Selection of short-listed bidders5 December 2005: Submission of the final bid20 December 2005: Preferred bidder/privatisation commission20 January 2006: Announcement of second round27 January 2006: Submission of final bid/second round1 February 2006: Preferred bidder/government

OUTLOOK:Signing of the final contract with the National Property Fund and Ministry of TransportSummer 2006: Expected closing of the privatisation process after approval by the Anti-Monopoly Office

25

Thank you for your attention.