Heathrow6.45% S Regulatory News (88BX)

27 June 2014

Heathrow Funding Limited

Heathrow Finance plc

Publication of Investor Report

On behalf of Heathrow 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 6 December 2011 and 15 May 2013.

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 2014 financial performance of Heathrow (SP) Limited prepared on a consolidated basis. Heathrow (SP) Limited owns Heathrow airport.

Heathrow (SP) Limited's latest expectations for financial performance for the year ending 31 December 2014 indicate that Adjusted EBITDA(1) will be £1,533 million, up 7.9% on 2013. This is consistent with the financial outlook for 2014 set out in Heathrow (SP) Limited's results for the three months ended 31 March 2014. It reflects an increase of 1.3% on a like for like basis to the forecast 2014 Adjusted EBITDA included in the December 2013 Investor Report once adjustment is made for the subsequent treatment of Terminal 2 operational readiness costs as exceptional items.

Other highlights of Heathrow (SP) Limited's expected performance in 2014 include:

· passenger traffic growth of 0.7% to 72.8 million; and

· revenue growth of 8.4% to £2,681 million primarily reflecting traffic growth and aeronautical tariff changes. This is supported by further growth in non-aeronautical income.

Heathrow expects to invest around £800 million in its capital programme in 2014, reduced from £1.3 billion in 2013. This represents a shift in spending from major capital projects such as the completion of Terminal 2 to capital spend on regular maintenance and operational resilience.

Click on or paste the following link into your web browser to view the June 2014 Investor Report PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/6979K_1-2014-6-26.pdf 

The Investor Report is also available from today via the Investor Centre at

www.heathrowairport.com/about-us/investor-centre 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 year ended 31 December 2013 and the regulatory accounts for Heathrow Airport Limited for the year ended 31 March 2014.

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 6 December 2011 and 15 May 2013, Heathrow Finance plc is also today distributing its consolidated financial statements for the year ended 31 December 2013.

These documents are available via the Investor Centre at

www.heathrowairport.com/about-us/investor-centre within the Document Centre

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

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