Heathrow6.45% S Regulatory News (88BX)

26 June 2015

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%, £275 million 5.375% and £250 million 5.75% Senior Secured Notes due 2017 dated 4 November 2010, due 2019 dated 10 December 2012 and due 2025 dated 13 October 2014 respectively and its Facilities Agreements dated 6 December 2011 and 15 December 2014.

The Investor Report contains information relevant to creditors of both Heathrow (SP) Limited (and its subsidiaries) and Heathrow Finance plc. The 2015 financial forecasts are prepared on a consolidated basis. Heathrow (SP) Limited is the owner of Heathrow airport.

Heathrow (SP) Limited's forecast financial performance for 2015 is for Adjusted EBITDA of £1.6 billion an increase of over 2% versus 2014. The forecast has been increased by almost £40 million, reflecting traffic growth in the early part of the year, strong retail revenue and improved operating costs including the early closure of Terminal 1. Traffic forecasts for 2015 have been increased by 0.3 million to 74.2 million, reflecting the strong performance in the first five months of the year.

Heathrow's capital expenditure is expected to be around £700 million in 2015. The investment programme includes an integrated baggage facility at Terminal 3, passenger facility improvements such as parallel loading security lanes, a new 800-space business car park for Terminal 5 and refurbishment of retail facilities. The Regulatory Asset Base is forecast to be £15.1 billion at the end of 2015. The forecast has been reduced by £200 million reflecting a lower average RPI assumption for 2015 of 1.1%.

Heathrow (SP) Limited's nominal net debt at the end of 2015 is forecast to be flat versus 2014 at £11.65 billion, with interest payments broadly consistent with 2014 levels, as the lower cost of debt financing starts to replace higher cost financing.

The attention of 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. Adjusted EBITDA is earnings before interest, tax, depreciation and amortisation.

The June 2015 Investor Report document is available in pdf format at the following link:

http://www.rns-pdf.londonstockexchange.com/rns/3191R_-2015-6-26.pdf

The Investor Report is also available from today via the Heathrow 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 2014 and the regulatory accounts for Heathrow Airport Limited for the year ended 31 December 2014.

Pursuant to the terms of its £325 million 7.125%, £275 million 5.375% and £250 million 5.75% Senior Secured Notes due 2017 dated 4 November 2010, due 2019 dated 10 December 2012 and due 2025 dated 13 October 2014 respectively and its Facilities Agreements dated 6 December 2011, Heathrow Finance plc is also today distributing its consolidated financial statements for the year ended 31 December 2014.

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