Publication of June 2018 Investor Report

27 June 2018

Heathrow Funding Limited

Heathrow Finance plc

Publication of June 2018 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 its semi-annual 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 £275 million 5.375% Senior Secured Notes dated 10 December 2012 and due 2019, £250 million 5.75% Senior Secured Notes dated 13 October 2014 and due 2025 and £275 million 3.875% Senior Secured Notes dated 5 June 2017 and due 2027 (the 'Heathrow Finance Bonds') and pursuant to Heathrow Finance plc's Facilities Agreements dated 15 December 2014, 10 February 2016 and 5 October 2016 (the 'Heathrow Finance Facilities Agreements').

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 which contains an Important Notice, including in relation to certain forward-looking statements included in the Investor Report, and contains a description of the basis on which the operational and financial information included in the document has been prepared.

The Investor Report includes 2018 forecasts for the financial performance of Heathrow (SP) Limited prepared on a consolidated basis, forecast nominal debt and financial ratios for Heathrow (SP) Limited and Heathrow Finance plc. Heathrow (SP) Limited, through its indirect subsidiary, Heathrow Airport Limited, owns Heathrow airport.

Heathrow (SP) Limited's latest expectations for financial performance for the year ending 31 December 2018 indicate that Adjusted EBITDA(1) will be £1,816 million, up 3.2% on 2017, representing a small decrease from £1,830 million included in the previous Investor Report published in December 2017. The reduction is primarily coming from higher winter resilience costs to protect operations at all times as well as aeronautical revenue yield dilution due to accelerated traffic growth in domestic routes and through cleaner and quieter aircraft (dilution to be fully recovered in 2 years through the relevant regulatory mechanism). Retail income per passenger is expected to increase 3.1% versus 2017 to £8.71, a small decline compared to prior forecast of £8.81 following the appreciation of the pound. Heathrow's focus will remain on giving passengers the best airport service in the world while delivering its ambitious cost optimisation plans for 2018. Heathrow expects to be cash flow positive in 2018 after capital expenditure and external interest costs. Interest costs are expected to reduce in 2018.

On 25 June 2018, Parliament unambiguously backed Heathrow's expansion by voting in favour of the Airports National Policy Statement ('NPS'). The Secretary of State for Transport subsequently designated the NPS, clearing the way for Heathrow to submit a development consent order planning application for the project. Expanding Heathrow in a sustainable, affordable and financeable way will unlock billions of pounds in growth and create tens of thousands of new skilled jobs across the UK. On 26 June 2018, rating agency Moody's confirmed Heathrow's strong credit rating would remain unchanged following the historic parliamentary vote.

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

http://www.rns-pdf.londonstockexchange.com/rns/6800S_1-2018-6-26.pdf

The Investor Report is available from today via the Heathrow Investor Centre at www.heathrow.com/company/investor-centre within the Document Centre.

Pursuant to the terms of the Common Terms Agreement, the Security Group Agent is today also distributing the consolidated financial information of Heathrow (SP) Limited for the year ended 31 December 2017 and the regulatory accounts for Heathrow Airport Limited for the year ended 31 December 2017.

Pursuant to the terms of the Heathrow Finance Bonds and the Heathrow Finance Facilities Agreements, Heathrow Finance plc is today also distributing its consolidated financial statements for the year ended 31 December 2017.

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

For investor enquiries please contact Christelle Lubin on +44 20 8745 0811.