Heathrow, Publication of Investor Report

Update for investors

Publication of Investor Report

Heathrow Funding Limited

Heathrow Finance plc

2012-12-19 — /travelprnews.com/ — On behalf of Heathrow Airport Limited, Stansted Airport Limited, Heathrow Express Operating Company Limited, Heathrow (AH) Limited and Heathrow (SP) Limited, LHR Airports Limited (as Security Group Agent) is today distributing an Investor Report to various parties pursuant to the terms of the Common Terms Agreement entered into on 18 August 2008.

The Investor Report is also being distributed by the Security Group Agent and Heathrow Finance plc to various parties pursuant to Heathrow Finance plc’s £325 million 7.125% and £275 million 5.375% Senior Secured Notes due 2017 dated 4 November 2010 and due 2019 dated 10 December 2012 respectively and its Facilities Agreements dated 26 October 2010 and 6 December 2011.

The Investor Report contains information relevant to creditors of both Heathrow (SP) Limited (and its subsidiaries) and Heathrow Finance plc.

The attention of potential readers of the Investor Report is drawn to page 2 of the document that contains an Important Notice relating to certain forward-looking statements included in the report and a description of the basis on which the operational and financial information included in the document has been prepared.

The Investor Report includes a forecast for 2013 financial performance, together with an updated forecast for 2012, of Heathrow (SP) Limited prepared on a consolidated basis. Heathrow (SP) Limited currently owns two London airports of Heathrow and Stansted.

A disposal process for Stansted airport is currently underway and the forecasts included in this Investor Report assume the sale will occur in early 2013. As a result, whilst Stansted’s performance in 2012 is discussed in the relevant parts of the document, for 2013, other than in respect of the impact of the sale on net debt, Regulatory Asset Base, interest costs and financial ratios, the financial and operational commentary focuses only on Heathrow airport.

Heathrow (SP) Limited’s financial performance has remained consistent with expectations since publication of its 2012 third quarter results with Adjusted EBITDA⁽¹⁾ for the year ending 31 December 2012 expected to be £1,246 million, up 10.1% on 2011.

Heathrow (SP) Limited expects to deliver strong growth in revenue and Adjusted EBITDA in 2013 as illustrated by the following highlights for next year:

• Heathrow’s passenger traffic is forecast to increase 1.2% to 70.9 million reflecting a marginal increase in the expected number of flights and larger average aircraft size.
• Heathrow’s revenue is expected to grow 9.7% to £2,439 million reflecting primarily increased passenger numbers and aeronautical tariffs supported by further growth in retail income per passenger.
• Heathrow’s Adjusted EBITDA⁽¹⁾ growth of 16.6% to £1,344 million with the increasing cash flow helping to finance Heathrow’s significant investment programme

Heathrow expects to spend over £1.3 billion on its capital investment programme during 2013 reflecting particularly accelerating activity on construction of the new Terminal 2. This programme is the biggest private development in the country which will support the UK economy with thousands of high calibre jobs as the pressure on public sector spending continues.

Click here to view the December 2012 Investor Report PDF document.

The Investor Report is also available from today via the Investor Centre at www.baa.com within the Document Centre.

Pursuant to the terms of the Common Terms Agreement, the Security Group Agent is also today distributing the consolidated financial information of Heathrow (SP) Limited for the six months ended 30 June 2012.

Pursuant to the terms of its £325 million 7.125% and £275 million 5.375% Senior Secured Notes due 2017 dated 4 November 2010 and due 2019 dated 10 December 2012 and its Facilities Agreements dated 26 October 2010 and 6 December 2011, Heathrow Finance plc is also today distributing its consolidated financial statements for the six months ended 30 June 2012.

These documents are available via the Investor Centre at www.baa.com within the Document Centre.

Notes to editors

(1) Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation and exceptional items

For further information please contact

Contact information
Name Heathrow Airport media centre
Telephone +44 (0)20 8745 7224
Email heathrowmediacentre@baa.com

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Northern runway and tower