Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Q1 2022 Earnings Presentation
51 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's earnings presentation, May 2022
Slide 1: Corporate Presentation First Quarter 2022
CORPORATE PRESENTATION FIRST QUARTER 2022 The future IS BUILT HERE
Slide 2: Table of Contents
Table of Contents 1 Company Overview 3 2 Operational Information 9 3 Revenue Development 17 4 Financial Information 25 5 Master Development Program 2020-2024 35 6 Environmental, Social & Corporate Governance 42 7 New Opportunities 47 C o n s o l i d ate d f i g u re s fo r 2 0 1 5 i n c l u d e i n
Slide 3: Company Overview
> COMPANY OVERVIEW
Slide 4: Our Network
Our Network Passengers (thousands) 2021 1,094 793 Mexicali Aguascalientes 9,678 Tijuana 2,119 Guanajuato 1,560 Hermosillo 947 368 Los Mochis Morelia 2,582 920 Montego Bay La Paz 830 5,550 Kingston Los Cabos 4,120 Puerto Vallarta 12,243 Guadalajara 133 Manzanillo 4
Slide 5: GAP's Competitive advantages 2021
GAP’s Competitive advantages 2021 5
Slide 6: 2021 – Outstanding Year Post Pandemic
2021 – OUTSTANDING YEAR POST PANDEMIC ➢ 88% recovery of traffic versus 2019, driven by remarkable performance of Tijuana airport ➢ Positive rebalance of Mexican concessions, tariffs enacted in January 2021 ➢ Support to airlines and tenants through discounts and incentives ➢ Highest EBITDA in GAP’s h
Slide 7: 2022 – The Future Is Built Here
2022 – The Future IS BUILT HERE ➢ Expecting robust passenger growth for the coming years: ▪ 28% increase in seat capacity in 2026 ▪ Increase ~13k in room capacity in leisure destinations ▪ Remittances growth ▪ Potential increase in international traffic in Tijuana ➢ Preparing infrastructure for futu
Slide 8: Outstanding financial performance 1Q22
Outstanding financial performance 1Q22 12.6 million 5,022 million MXP Passengers Revenues1 69.9% vs 2021 85.4% vs 2021 5.8% vs 2019 42.2% vs 2019 1,117million 3,708 million MXP MXP CAPEX EBITDA, Margin 1 73.8% 111.0% vs 2021 48.3% vs 2019 2,000 million MXP 14.40 per share 2,327 million M
Slide 9: Operational Information
: = OPERATIONAL INFORMATION
Slide 10: Passenger traffic evolution in Mexico
Passenger traffic evolution in Mexico PASSENGERS CAGR1 1999-2021: 4.1% AVERAGE GDP GROWTH 1999-2021: 1.3% PASSENGERS CAGR 2012-2021:7.1% 1Compound Annual Growth rate 10
Slide 11: Monthly traffic evolution 2019-2021
Monthly traffic evolution 2019-2021 5.0 TOTAL 86% (including Kingston 12M19) 4.0 3.0 50.1M 2019 2020 27.3M 2.0 2021 42.9M 1.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 93% 2.0 DOMESTIC 2.5 INTERNATIONAL 3.5 3.0 74% 2.5 1.5 2.0 1.5 1.0 1.0 0.5 0.5 0.0 0.0 Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 12: Airport group with biggest market share in Mexico in 2021
Airport group with biggest market share in Mexico in 2021 DURING 2021 GAP OPERATED 5 OF THE TOP-TEN BUSIEST AIRPORTS IN MEXICO 12 Source: Passenger traffic reports as of December 31, 2021: GAP, OMA, ASUR, AICM & ASA
Slide 13: Passenger traffic evolution by Airport
Passenger traffic evolution by Airport Change Airport 3M22 vs 3M19 21 vs 20 20 vs 19 19 vs 18 18 vs 17 17 vs 16 16 vs 15 Guadalajara 3,330.3 -2.3% 50.7% -45.3% 3.4% 12.1% 12.4% 16.4% Tijuana 2,744.1 35.9% 53.2% -29.2% 13.9% 10.3% 12.2% 30.0% 81.1% Los Cabos 1,637.6 12.9% 81.1% -45.4% 6.9% 6.9% 15.6%
Slide 14: Diversifications of carriers 1Q22
Diversifications of carriers 1Q22 9.0% 16.3% 7.7% 4.0% AIRLINES PARTICIPATION 43.5% IN GAP 1Q22 4.0% 3.0% 2.7% 9.6% Others 14
Slide 15: Airlines Potential Growth
Airlines Potential Growth ➢ Airlines are increasing their capacity in the Mexican market ➢ +28.4% compared to 2021, potential capacity growth Fleet by 2024 Fleet by 2025 Fleet by 2026 15 Source: Volaris, Viva and Aeromexico reports
Slide 16: Airlines recovery at GAP Mexican airports 2021 vs 2019
Airlines recovery at GAP Mexican airports 2021 vs 2019 Market Share by Airline 2019-2021 Seats Offering & Growth 2021 vs 2019 2019 Other 14.6% American 4.4% 18.7% Volaris Interjet 43.6% 26.0 10.4% Total seats 21.9 recovery -2.2% Aeroméxico 14.0% 16.9 16.5 VivaAerobus 2021 13.0% Other 34.7% 14.5% -18
Slide 17: Revenue Development
= REVENUE DEVELOPMENT
Slide 18: Aeronautical Revenues Performance
Aeronautical Revenues Performance ➢ Represents ~77% of total revenues ➢ In the 1Q22 we reached ~97% of the maximum tariffs approved +13.6% 11,984 10,548 9,499 -31.5% +65.8% 8,281 7,038 7,226 5,623 +46.5% +46.5% 3,926 3,854 3,617 3,366 2,958 3,078 2,631 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 19: Commercial Revenues
Commercial Revenues -1.7% México - Business operated directly by us 3,536 3,476 México - Third parties 593 565 Jamaica - Total 2,983 -35.7% +52.8% 519 2,573 474 2,274 2,246 436 415 1,783 333 +33.4% 1,184 1,958 2,086 1,076 1,115 936 1,676 188 1,448 835 738 784 1,185 1,308 145 920 706 758 636 657 574
Slide 20: Commercial Strategy
Commercial Strategy 1) Improve passenger travel journey - Added Apps and Quality Assurance and Customer Experience 2) Spaces and layouts - SJD, GDL, PVR, MBJ - Redefinition of commercial offer, well-known brands, new bidding processes improving the current conditions 3) Strengthen GAP-operated busin
Slide 21: Commercial square meter Growth
Commercial square meter Growth NEW BRANDS Increase in BIDS F&B 29,584 c o m me r c i a l S Q M 45 52 Los Cabos (2021 vs 2019) 136 +9.2% 310 28,224 GROWTH BY 27,090 AIRPORT 2,494 SQM BIDS RETAIL Montego Bay 1,951 2019 2020 2021 *F&B, Retail, Car Rental and Duty Free SJD GDL MLM PVR OTHERS 21
Slide 22: Total commercial areas Expansion
Total commercial areas Expansion I N C R E A S E I N 2022e vs 2019 16% 2019 2020 2021 2022 e Aguascalientes 487 544 677 677 Guanajuato 1,031 1,545 1,642 1,705 Guadalajara 10,119 10,213 10,084 10,674 Hermosillo 1,162 1,162 1,228 1,228 La Paz 497 497 586 586 Los Mochis 190 190 266 266 Morelia 150 150
Slide 23: Expanding direct Operation 2022
Expanding direct Operation 2022 FBO Los Cabos Ampliación de 5,019m2 6,078m2 7,403m2 + 87 Aircraft parking positions Plataforma en ejecución + 2 Aircraft parking positions for helicopters + 99,400 sqm Branding strategies for “Primesky” (GAP brand) Additional Parking Spaces Guadalajara – One this year
Slide 24: Commercial Revenues 3M22
Commercial Revenues 3M22 Change Change 3M19 3M21 3M22 22 vs 19 22 vs 21 Businesses operated by third parties: Duty-free 131,050 81,342 161,984 23.6% 99.1% Food and beverage 112,396 81,489 169,159 50.5% 107.6% Retail 91,826 65,476 134,444 46.4% 105.3% Car rentals 92,173 80,707 129,819 40.8% 60.9% Lea
Slide 25: Financial Information
: = FINANCIAL INFORMATION
Slide 26: Historical Sustained Growth
Historical Sustained Growth EBITDA TOTAL REVENUES1 MXP MILLIONS MXP MILLIONS EBITDA1 MARGIN NET INCOME MXP MILLIONS 26 1 Excluding IFRIC 12
Slide 27: Trend per Passenger
TREND PER PASSENGER AERO REVENUE PER PAX NON-AERO REVENUE PER PAX MXP MXP EBITDA PER PAX COST OF SERVICES PER PAX MXP MXP 27
Slide 28: Historical sustained growth – Operating Cash Flow
Historical sustained growth– Operating Cash Flow ➢ Strong recovery from Mexico´s domestic traffic ➢ Noteworthy liquidity recovery CASH FLOW FROM OPERATING ACTIVITIES MXP MILLIONS 28
Slide 29: Key financial Drivers & Financial Targets
Key financial Drivers & Financial Targets Financial Drivers Financial Targets ➢ Maintain healthy financial levels ➢ Net debt to EBITDA: below 3.0x ➢ Preserve liquidity ➢ Capital structure: 70/30 ➢ Optimize operational leverage ➢ WACC: below 9.0% ➢ Comply with debt covenants ➢ Maintain investment gra
Slide 30: EBITDA in USD 2021
EBITDA in USD 2021 USD (millions): Mexico Jamaica 2021 % over the total MXN (millions) Total Revenue (1) 52 104 156 20% 3,140 Total Expenses 26 60 86 37% 1,731 EBITDA 26 44 70 13% 1,409 1 Excluding IFRIC 12 30
Slide 31: Current Debt profile as of March 2022
Current Debt profile as of March 2022 Variable 22% USD Total Debt MXP Total Debt 17% Fixed 83% 78% MXP 31,207 MXP 31,207 Net Debt to EBITDA ratio 1.1x (million pesos) Aaa.mx – National Scale Baa1 – Global Scale Outlook: Stable mxAAA– National Scale Issued on March 17, 2022 Issued on February 24, 202
Slide 32: Debt Maturity 2022-2032
Debt Maturity 2022-2032 USD 191* (Figures in MXP millions) 32 Exchange rate of $20.5835
Slide 33: Debt Covenants 2021
Debt Covenants 2021 NET DEBT EBITDA RATIO INTEREST DEBT SERVICE 1.70 x 56.09 x 1.34 x 0.92 x 33.29 x 0.85 x 0.71 x 0.73 x 0.55 x 21.74 x 12.86 x 10.35 x 9.05 x 0.04 x 6.62 x 4.22 x 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 33
Slide 34: Shareholders' Distributions
Shareholders’ Distributions ➢ Pay all excess of cash above a minimum cash balance (two months of OPEX + the debt service) ➢ Dividend payment or capital reimbursement, considering the most efficient tax practice Repurchase Program 2,000 3,000 e Payout Ratio 83.5% 72.8% 100.0% 66.7% 69.7% 112.9% 53.9%
Slide 35: Master Development Program 2020-2024
MASTER DEVELOPMENT PROGRAM 2020-2024
Slide 36: Extraordinary Review in Mexico Post-COVID 19
Extraordinary Review in Mexico Post-COVID 19 s MXP 6,029 million in CAPEX r 7.35% Tariff = Operating flow Maximum Tariff Master Development 7.35% Program 14.88% 219.49 208.77 21,832 -27.6% 179.56 15,802 MXP MXP MILLIONS MDP** 2020-2024 MDP 2020-2024 MT* 2019 MT 2020 MT 2020 Extraordinary Review Extr
Slide 37: MDP Mexico 2020-2024
MDP Mexico 2020-2024 4,124 3,518 2,937 2,696 2,528 MXP MILLIONS 2020 2021 2022 2023 2024 Total committed investments of MXP15,802 million *Figures expressed in pesos as of December 31, 2017 The Capital Development program for our Jamaican airports is under review 37
Slide 38: Guadalajara Second Runway and Second Terminal
Guadalajara Second Runway and Second Terminal ➢ Infrastructure development to meet future demand and ensure a seamless connection process, includes: ▪ Second runway ▪ New aprons ▪ New terminal building (will start in this quinquennium and will continue in the next five year-period) ➢ Opportunity to
Slide 39: Tijuana Terminal Processor Building
Tijuana Terminal Processor Building ➢ Building that will enable international passengers in transit to go through Tijuana Airport in a fast way without being processed by Mexican Authorities (+39,500 sqm) ➢ Possibility to develop international routes from/to Asia, U.S. and Latin America ➢ Total inve
Slide 40: Puerto Vallarta New Terminal Building
Puerto Vallarta New Terminal Building ➢ New terminal building under the concept “Net-Zero” energy ➢ 8 additional aprons ➢ 15 additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Total investment of MXP 3,026 millions* ➢ +42,000 sqm ➢ Construction will start in 2022 and conclude
Slide 41: Los Cabos Terminal expansion
Los Cabos Terminal expansion ➢ Expansion of international Terminal Building (+10,500 sqm) ➢ 28 additional aprons ➢ Two additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Total investment of MXP 1,579 millions* ➢ Construction already commenced and will conclude during 2022 41
Slide 42: Environmental, Social & Corporate Governance
ENVIRONMENTAL, SOCIAL & CORPORATE GOVERNANCE
Slide 43: Sustainability Achievements
Sustainability Achievements National Registry of Emissions. UN Global Compact Environmental Management Reporting annually in this registry and GAP is adhered to the Global Compact, System ISO 14001-2015. verify every 3 years, the consolidated supporting its ten principles, since 2020. 12 airports ce
Slide 44: Sustainability Achievements
Sustainability Achievements Expansión Socially Responsible Bloomberg Gender-Equality Index Super Empresas - Expansión ISO 9001:2015 Quality Company Since January 2022, we have been We participate in this ranking, Management System We participated for the 13th included in this index, due to our posit
Slide 45: Social Commitments
Social Commitments ➢ GAP Foundation has the purpose of improving the social well-being of the communities close to GAP airports through educational initiatives: GAP Schools and Community Training Centers ➢ GAP Schools are schools at the primary and secondary level that provide excellent education an
Slide 46: Corporate Governance
Corporate Governance ➢ GAP complies with the best national and international Corporate Governance practices to maximize value creation, optimize decision-making and promote a culture of compliance and accountability. ➢ The Board of Directors is responsible for the administration of the Company. The
Slide 47: M&A
M&A
Slide 48: M&A – Drivers for Potential Investments
M&A – Drivers for Potential Investments Country Risk – Analysis of country risk premium, its reference rate, the FX risk Regulatory Framework – General conditions of the Concession Agreement, laws applicable to the concession and revenue system Passenger traffic – Analysis of passenger profiles (VFR
Slide 49: Guidance 2022
Guidance 2022 2022 vs 2021 Passenger Traffic 14% - 20% Aeronautical Revenue 19% - 25% Non-aeronautical Revenue 17% - 23% Total Revenue 18% - 24% EBITDA 18% - 24% EBITDA Margin 70% +- 1% CAPEX MXP 8.0 billion 49
Slide 50: Investor Information
Investor Information Saúl Villarreal Corporate Headquarters Chief Financial Officer Av. Mariano Otero No. 1249-B 6th floor svillarreal@aeropuertosgap.com.mx Torre Pacífico, Rinconada del Bosque Guadalajara, Jalisco, México. Zip Code 44530 Alejandra Soto +(52) 33 3880 1100 IRO & Corporate Finance Dir
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