Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (May 2018)
52 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, May 2018
Slide 1: GAP Airports: Outstanding Flight
GAP AIRPORTS OUTSTANDING FLIGHT Corporate Presentation May 2018 1
Slide 2: GAP in Numbers: 2017
GAP in Numbers: 2017 +3,700 average weekly frequencies Page 2
Slide 3: Our Airports in 2017
Our Airports in 2017 MEXICALI 7 Bs0a HERMOSILLO Xs & 1,628 TIJUANA %34 &7,103 LAPAZ - X23 2.848 LOS CABOS %a as PUERTO VALLARTA %a9 2.4523 GUADALAJARA YX Destinations X58 212,808 g Passengers Thousands LOS MOCHIS %e 349 AGUASCALIENTES Ke B754 ; MONTEGO BAY er & 4,226 x - GUANAJUATO 15 21,956 '__——.
Slide 4: Largest private Mexican Airport Operator
Largest private Mexican Airport Operator Mexican % Passenger Passengers Airport growth vs 2017 Groups 2016 AICM 44.5 7.5% GAP 36.0 11.8% ASUR 31.1 9.3% OMA 19.5 3.8% ASA/OTHERS 5.7 7.7% Total Mexico 136.7 8.5% 0.7 pp increase in Mexico’s market share during 2017 Figures are expressed in millions Sou
Slide 5: Top Mexican Airports – 2017 passenger traffic
Top Mexican Airports – 2017 passenger traffic 50 +7.5% 44.5 45 40 35 GAP Operates 5 of the 10 Most 30 +10.2% Important Airports in Mexico 25 23.6 20 +12.5% 15 12.8 +5.5% 9.7 +12.2% 10 +15.0% +11.1% 7.1 +10.5% +14.1% 4.7 4.4 +7.6% 5 2.1 1.9 1.9 0 Figures are expressed in millions Source: SCT DGAC Pag
Slide 6: Competitive Advantages: 2017
Competitive Advantages: 2017 Page 6
Slide 7: Mexican Airport Industry
Mexican Airport Industry Traffic Overview Air traffic grew 8.5% during 2017, for Mexico City Airport a total of 136.7 million passengers; GAP grew 11.7% in 2017 and we are estimating 8.0% for 2018 full-year. This airport continues to grow (7.5% Air travel penetration increased during 2017, for a tot
Slide 8: Jamaican Airport Industry
Jamaican Airport Industry Montego Bay Montego Bay transported 4.2 million passengers during 2017, growing 8.3% vs 2016 The growth was mainly driven by: • Additional hotel capacity at this destination • Additional seat capacity in U.S. and Europe flights • Shift of flights as other destinations in th
Slide 9: Main Drivers for 2018
Main Drivers for 2018 Strong Tourism – In 2017, Mexico was ranked eighth most popular tourism destination in the world. Remittances from the U.S. continue rising, reaching over US$ 26.1 billion during 2017, boosting local purchasing power. Mexican airlines continue expanding fleets with higher capac
Slide 10: Market Risks for 2018
Market Risks for 2018 Slowdown in the Mexican US Immigration Policy economy driven by NAFTA could affect international negotiations. flights to Mexico. Volatility during the Mexican International travel Warnings elections. Oil prices, which affect airlines’ ability to keep competitive pricing. Page
Slide 11: Another Year, Another Record
Another Year, Another Record The average load factor for our Mexican airports has been 78% since 1999, while in 55.00 CAGR 12-18E: 2017 it was 81% 11.0% 50.00 50 45.00 40.00 CAGR 99-18E: 4.8% 40 35.00 36 Millions 30.00 Passengers 33 Seats 25.00 28 25 24 23 20.00 22 21 21 20 20 19 19 15.00 18 16 16 1
Slide 12: GAP’s Airports – Looking Ahead
GAP’s Airports – Looking Ahead 54.5M total seats in 2018 81.2% load factor GUADALAJARA TIJUANA Expected to have best year in its history, During 2016, it was the fastest-growing surpassing the 14 million passenger mark for airport within the top 100 airports of the the very first time. Americas, and
Slide 13: GAP’s Airports – Looking Ahead
GAP’s Airports – Looking Ahead LOS CABOS & PUERTO VALLARTA MONTEGO BAY 2.5K and 3.5K additional hotel rooms, Montego Bay Airport surpassed the 4 million respectively, will be added during 2018, passenger mark for the first time during 2017 and consolidating their position as the strongest is expecte
Slide 14: CBX: Key driver for Tijuana Airport
CBX: Key driver for Tijuana Airport The number of seats offered to/from beach destinations* is expected to increase 8.0% during first half of 2018; this is a result of growing tourism from Southern California. Residents of Southern California have benefitted from the airport’s growth; Tijuana’s seat
Slide 15: Strategic Outlook Mexican Airport Industry
Strategic Outlook Mexican Airport Industry
Slide 16: GAP’s Key to Success: Diversification
GAP’s Key to Success: Diversification Million Growth vs Airport Passengers 2016 2017 Guadalajara 12.8 12.4% % Passenger Share 2017 % Growth Share 2017 Tijuana 7.1 12.2% Los Cabos 4.9 15.6% Puerto Vallarta 4.5 11.3% Montego Bay 4.2 8.3% Guanajuato 2.0 14.3% Hermosillo 1.6 4.3% La Paz 0.8 0.2% Mexical
Slide 17: Diversification of Carriers
Diversification of Carriers Top 10 Performers Total Passenger Share 2017 by additional seats GAP CONSOLIDATED Others Total Seat Growth: 10.2% Additional % Seat Airline Seats vs Growth vs 2016 2016 Volaris 1,885,362 13.0% Interjet 665,400 14.9% VivaAerobus 650,814 19.7% Southwest 498,475 43.6% United
Slide 18: Resiliency of Legacy Carriers in a Growing Market
Resiliency of Legacy Carriers in a Growing Market Total seats offered at GAP/ Airline Type 59% 52% 38% 61% 44% 37% Low-Cost Carrier evolution had no negative effect in legacy carriers since 2013 Source: Airports IS. Only regular scheduled flights are included in the graph. For comparison purposes, t
Slide 19: Fleet Strategy
Fleet Strategy Number of Aircraft 140 129 134 118 120 105 100 84 77 79 80 71 60 44 44 40 28 21 22 24 15 20 7 0 Aeromexico Interjet Volaris VivaAerobus 2009 2013 2017 2018E New Seats Expected in Backlog 2019- Onwards 2018 at GAP Wide-Body Narrow-Body Aeromexico 266,296 6 55 Interjet 1,102,666 40 Vola
Slide 20: Traffic Evolution by airport
Traffic Evolution by airport Airports 2017 17 vs 16 1Q18 vs 1Q17 Guadalajara 12.8 12.4% 3.3 16.0% Tijuana 7.1 12.2% 1.8 12.7% Los Cabos 4.9 15.6% 1.4 8.6% Puerto Vallarta 4.5 11.3% 1.6 8.7% Montego Bay 4.2 8.3% 1.2 6.7% Guanajuato 2.0 14.3% 0.5 21.1% Hermosillo 1.6 4.3% 0.4 15.4% La Paz 0.8 0.2% 0.2
Slide 21: Traffic Evolution by airline 1Q18
Traffic Evolution by airline 1Q18 Load Factor Load Factor Airline Pax 2017 Pax 2018 Change % 2017 2018 Volaris 3,226,613 3,692,748 466,135 14.4% 81.2% 81.5% Aeromexico 1,397,716 1,471,235 73,519 5.3% 73.2% 78.2% Interjet 810,223 1,070,718 260,495 32.2% 72.4% 74.5% VivaAerobus 659,996 949,014 289,018
Slide 22: Commercial Revenue Development
Commercial Revenue Development
Slide 23: Commercial Revenue grew 2.5x in the past 5 years
Commercial Revenue grew 2.5x times in the past 5 years GAP Intl CAGR GAP MX CAGR 22.4% 17.5% 3,050.0 3,000.00 2,572.7 531.0 2,500.00 2,245.7 474.4 2,000.00 435.7 1,783.1 1,769.0 332.7 1,500.00 1,184.3 1,448.3 1,075.9 1,185.1 936.2 1,000.00 783.9 920.3 738.1 758.3 706.5 635.9 500.00 552.5 574.3 757.0
Slide 24: Commercial revenue per passenger ratios keep increasing
Even on a high-growth passenger environment, ratios keep increasing Commercial revenue per Commercial revenue per passenger passenger MEXICO (MXP) JAMAICA (USD) 6.2 6.0 70 63 6.1 65 58 6 60 55 5.9 55 53 5.9 5.8 50 46 48 5.8 44 45 5.7 39 5.6 40 5.6 35 5.5 30 5.4 25 20 5.3 2011 2012 2013 2014 2015 201
Slide 25: Commercial Revenue per Passenger by Airport
Commercial Revenue per Passenger by Airport 112.7 Los Cabos 122.2 Montego Bay 104.7 114.5 Puerto Vallarta 66.3 69.8 52.8 Aguascalientes 59.7 Guadalajara 50.8 52.7 Guanajuato 50.6 57.5 36.8 1Q18 1Q17 Tijuana 43.2 33.6 Morelia 32.1 32.0 Hermosillo 34.2 29.9 Manzanillo 24.9 21.6 Mexicali 24.6 21.2 La P
Slide 26: Growth from Diversified Portfolio
Growth from Diversified Portfolio 3,100,000 3,050,000 78,000 3,000,000 25,000 41,000 57,000 2,900,000 56,000 222,000 2,800,000 2,700,000 2,600,000 2,571,000 2,500,000 2017 GDL SJD MBJ PVR TIJ OTHERS 2018 E Commercial AIRPORTS Commercial Revenues Revenues MXP thousands Page 26
Slide 27: Commercial Revenue Strategies in 2018
Commercial Revenue Strategies in 2018 GAP’s Commercial Added Value Expansion and Remodeling New Layouts and Top Brands Customer Experience Retail, Duty Free and Food and Beverage Top business operators + 1,250 and +1,260 square meters of new commercial Deep understanding of our development in GDL ma
Slide 28: Airport Infrastructure
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Slide 29: Master Development Program
Master Development Program CAPEX 2015 – 2019 (in million of Mexican pesos ) 4% 150.0* 15% Terminal Buildings 41% 800.0* Apron and airfield 2,177.5 40% Equipment 1,527.0 1,644.0 Environment al 1,000.0 461.6 2015 2016 2017 2018E 2019E 2018 and 2019 figures are updated to 2018 and 2019 expected prices.
Slide 30: Main projects: Guadalajara
Main projects: Guadalajara Main Terminal remodeling and expansion TOTAL CAPEX: MXP 640 million First and main phase in operation since October 2017 o Extension of 8,800 m2 in two levels o 3 new contact gates with boarding bridges + 1,250 m2 of new commercial development o 6 remote boarding gates o N
Slide 31: Main projects: Guadalajara
Main projects: Guadalajara Main Terminal remodeling and expansion Second and last phase is expected to be completed in September 2018 o Extension of 3,300 m2 and remodeling of additional 3,200 m2 o 5 remote boarding gates o New food court with an extension of 1,300 m2 Page 31
Slide 32: Main projects: Tijuana
Main projects: Tijuana Terminal building remodeling and expansion o TOTAL CAPEX: MXP 850 Million o Expansion of 8,500 sqm, and remodeling of 17,300 m2 o New check-in area with 12 additional counters (in operation since September 2017) o 5 new baggage claim belts, with extended capacity, in substitut
Slide 33: Main projects: Guanajuato
Main projects: Guanajuato Terminal building remodeling and expansion o CAPEX: MXP 170 million o Expansion of 3,000 m2 and renovation of 8,000 m2 o New security control with one additional lane: 4 vs the current 3 (in operation since August 2017) o Tripling boarding lounge capacity o 1 additional gat
Slide 34: Main projects: La Paz
Main projects: La Paz Terminal building remodeling and expansion o CAPEX: MXP 55 million o Extension of 1,100 m2 and renovation of 800 m2 o 70% increase in boarding lounge capacity: 1,200 m2 vs the current 700 m2 o 2 new boarding gates. 6 compared with the existing 4 o Security check point extension
Slide 35: Main projects: Aguascalientes
Main projects: Aguascalientes Terminal building remodeling and expansion o CAPEX: MXP 60 million o Procurement for construction underway o 30% increase in boarding lounge with 2 additional boarding gates o Expanded and completely refurbished security check point: 1 additional lane 270 m2 compared wi
Slide 36: Main projects: Los Cabos
Main projects: Los Cabos International Terminal building expansion o CAPEX: MXP 530 million o New boarding lounge with 6,500 m2 and 10 remote boarding gates o Three new air bridges. 7 compared with the existing 4 o 25% expansion of immigration point: 2,300 m2 vs the current 1,800; 20 new automatic i
Slide 37: Main projects: Los Cabos
Main projects: Los Cabos New Fire Rescue Building o CAPEX: MXP 100 million o Construction area:1.740 m2 o Commencement date: February 2018; completion date expected: January 2019 Page 37
Slide 38: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 39: Financial Results for 2017
Financial Results for 2017 Page 39
Slide 40: Breakdown of Growth: 2017
Breakdown of Growth: 2017 Aero Revenue per Pax Non-Aero Revenue per Pax Cost of Service per Pax 2017 $ 203 5.6% 2017 $ 68 4.0% 2017 $ 52 6.3% 2016 $ 193 2016 $ 65 2016 $ 49 Page 40
Slide 41: EBITDA Generated in USD
EBITDA Generated in USD (millions of USD): Mexico Jamaica 2017 % in USD Pesos Total Revenue (1) 43 94 137 23% $ 2,594 Total Expenses 8 46 54 31% $ 1,023 EBITDA (2) 35 48 83 20% $ 1,572 (1) Excluding the effects of IFRIC12 (2) 63% corresponds to MBJ and 37% from leasing agreements in our Mexican airp
Slide 42: Outstanding Performance
Outstanding Performance 12,450 8,550 2018E 2018E (1) Excluding IFRIC12 Page 42
Slide 43: EBITDA Strength
EBITDA Strength 69.0% 69.9% 8,550 69.8% 7,725 71.5% 70.1% 6,583 68.0% 67.2% 66.5% 5,404 65.7% 3,690 3,256 2,939 2,597 2,441 2010 2011 2012 2013 2014 2015 2016 2017 2018E (Million Mexican Pesos) Page 43
Slide 44: Trend per Pax
Trend per Pax Aero Revenue per PAX Non-Aero Revenue per PAX (MXP) (MXP) 210 73 203 68 193 65 179 62 152 158 156 159 54 146 51 47 41 38 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2010 2011 2012 2013 2014 2015 2016 2017 2018E Cost of Service per PAX EBITDA per PAX (MXP) (MXP) 190 194 180 52 52 53 1
Slide 45: M&A Activity and Opportunities
M&A Activity and Opportunities Main Drivers to invest: Potential opportunities: 2015 (dismissed): Country - Aerodom (Dominican Republic) Regulatory Framework 2016 (dismissed): - Airplan + Aeropuertos de Oriente (Colombia) Passenger traffic - 4th Round for four airports (Brazil) 2017-2018 (on going):
Slide 46: Key Financial Drivers
Key Financial Drivers Maintain healthy financial levels Potential expansions leveraged Leveraging CAPEX Compliant debt covenants Sustain debt ratings Improving WACC Distribution Policy: consistent and increasing Page 46
Slide 47: Total Debt as of March 2018
Total Debt as of March 2018 2018E Total MXP12,883 77% Floating 30% USD Net Debt / (millions) 23% Fixed 70% MXP EBITDA 1.0x Amount Ints Rate Spread Amortization Maturity (millions) Fixed bond “GAP15-2” $1,500 7.08% n/a Bullet Feb-2025 Floating bond “GAP15” $2,200 TIIE 28 0.24% Bullet Feb-2020 Floatin
Slide 48: Debt Ratings
Debt Ratings Standard & Poor’s: mxAAA–National scale Outlook: Stable Issued in October 2017 Downward rating if: Net debt to EBITDA over 3x Interest coverage below 5x FFO/debt ratio below 30% Moody´s: Aaa.mx –National scale A3 –Global scale Outlook: Stable Issued in October 2017 Covenants 2017: Net d
Slide 49: Financial Targets
Financial Targets Net debt to EBITDA: below 2.4x Capital Structure: 50 / 50 WACC: below 8.0% Interest coverage: above 5x FFO/debt ratio above 40% Page 49
Slide 50: Distribution Policy
Distribution Policy - Pay all the excess of cash above a minimum cash balance (two months of OPEX + the debt service) - Dividend payment, or capital reimbursement, will take into account the most efficient fiscal practice 9.0% 6,000 7.9% 5,256 ** 8.0% 7.5% 4,756 5,000 7.0% 6.8% 6.1% 3,889 6.0% 4,000
Slide 51: Guidance 2018
Guidance 2018 Traffic 8% +/- 1% Aeronautical Revenue 12% +/- 1% Non-aeronautical Revenue 16% +/- 1% Total Revenue 13% +/- 1% EBITDA 11% +/- 1% EBITDA margin 69% +/- 1% CAPEX MXP 2.6 billion Page 51
Slide 52: economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions
This document may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “be
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