BAA (SP) Limited results for the six months ended 30 June 2011

BAA (SP) Limited owns BAA’s two London airports of Heathrow and Stansted. Throughout this document, BAA (SP) Limited and its subsidiaries are referred to as the Group. BAA (SH) plc is the parent company of BAA (SP) Limited.

• Record Heathrow passenger traffic throughout second quarter of 2011
• Passenger traffic up 7.1% at 41.4 million with 9.1% growth at Heathrow (2.9% underlying)
• Revenue up 12.1% and Adjusted EBITDA up 27.1%
• Strong financial performance reflects improved underlying traffic, increased revenue per passenger, good cost control and no recurrence of 2010’s volcanic ash and strike disruptions
• Consistent service standards including better punctuality at both Heathrow and Stansted
• Heathrow transformation continues with Terminal 5C now fully operational
• Successful debut US$1 billion bond further transforms BAA’s capital structure and liquidity
• BAA is considering a judicial review of the Competition Commission’s continued demand that Stansted and a Scottish airport are sold

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

2. Cash generated from operations in 2010 restated from £384.0 million

3. Adjusted pre-tax loss is before exceptional items, gain on disposal of Gatwick airport, impairment of fixed assets and fair value adjustments

4. Nominal net debt excluding intra-BAA group loans and including index-linked accretion

5. 2010 net debt and RAB figures are as at 31 December 2010

6. Changes in passengers and net retail income per passenger are calculated using unrounded data

7. See section 2.2.2.2 for calculation of net retail income per passenger

Colin Matthews, Chief Executive Officer of BAA, said:

“This is a strong financial performance that reflects record passenger numbers, increased revenue per passenger and good cost control. We remain focused on customer service and Heathrow has achieved some of its best ever levels of flight punctuality and baggage delivery. BAA is investing £1 billion in new passenger facilities at Heathrow during 2011 and the airport’s newest, Terminal 5C, opened in June, improving passengers’ experience of the airport.”

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