Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q3 2016 Earnings Presentation
35 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, October 2016
Slide 1: Third Quarter 2016 Results
a“ - Third Quarter OMA | 2016 Results
Slide 2: Forward-looking statements disclaimer
This presentation may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current information and expectations and projections about future events. Forward-looking statements m
Slide 3: About the Company
About the Company Our businesses 13 Airports in the central-north region of Mexico, serving 18.2 million passengers in LTM. 2 Hotels; NH Collection Hotel in Terminal 2 of the Mexico City Airport, and a Hilton Garden Inn at the Monterrey Airport 1 Industrial Park at the Monterrey Airport Who we are M
Slide 4: Third Quarter 2016 Results
Third Quarter 2016 Results Company Overview Aeronautical Business Non-Aeronautical Business Historical Performance Airline Synergy Commercial Strategy Shareholders Connectivity Diversification Strategy Operations & Sustainability Passenger Traffic Historical NAR Growth Airline Participation NAR 3Q16
Slide 5: Company Overview
Company Overview Historical Performance Shareholders Operations & Sustainability
Slide 6: Company Overview | Historical Performance
Company Overview | Historical Performance Sustained positive trends through economic and business cycles 6,000 Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 18.2 19.0 16.9 5,000 4,927 17.0 14.7 4,145 14.2 14.1 26% 15.0 4,000 13.3 12.6 3,422 27% 13.0 11.8 11.5 11.6 11.8
Slide 7: Company Overview | Shareholder Structure
Company Overview | Shareholder Structure Float, 87.60% SETA*, 12.40% B Shares BB Shares Includes 6.2mm repurchased shares (1.6% of total shares) *Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) is a wholly owned subsidiary of Empresas ICA ,S.A.B. de C.V. Information as of October 25, 2016
Slide 8: Operations & Sustainability Leadership
Company Overview | Operations & Sustainability Operations & Sustainability Leadership 2014 Culiacán Airport Mazatlán Airport
Slide 9: Aeronautical Business
Aeronautical Business Airline Synergy Connectivity Passenger Traffic Airline Participation Aeronautical Revenues 3Q16
Slide 10: Routes Opened – Main Projects
Aeronautical Business | Airline Synergy Routes Opened – Main Projects Airline Project 2014 2015 2016 Total Regional HUB in MTY 11 3 2 16 Secondary Base in MTY 9 1 0 10 Secondary Base in MTY 21 7 12 40 New Airline operating in 9 of 13 15 10 38 our 13 Airports Headquartered in MTY 7 0 3 10 Total 61 26
Slide 11: Aeronautical Business | Connectivity
Aeronautical Business | Connectivity 28 new direct routes in 9M16 Domestic Routes Airline Chihuahua – Tijuana Aeromexico Connect Monterrey – Mérida Aeromexico Ciudad Juárez – Torreón TAR Ciudad Juárez – Puerto Peñasco TAR Chihuahua – Hermosillo TAR Mazatlán – Torreón TAR Monterrey – Cuernavaca TAR T
Slide 12: Aeronautical Business | Passenger Traffic
Aeronautical Business | Passenger Traffic Passenger Traffic 3Q16 January - September 2016 Total Pax: 5.1 million (+12.2%) Total Pax: 13.8 million (+10.3%) 89% Domestic: 4.6 million (+14.2%) 87% Domestic: 12.0 million (+12.2%) 11% International: 0.5 million (-2.0%) 13% International: 1.8 million (-1.
Slide 13: Aeronautical Business | Airline Participation
Aeronautical Business | Airline Participation 89% Domestic 11% International Passengers Passengers Other TAR Other 4% 2% 7% VivaAerobus 2% Volaris 11% United Aeroméxico 23% Interjet 27% Interjet 17% 6% Alaska 3% Delta American Volaris 10% 22% VivaAerobus 21% 26% Aeroméxico 18% Note: Information as o
Slide 14: Aeronautical Revenues 3Q16
Aeronautical Business | Aeronautical Revenues 3Q16 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps. 707mm Ps. 201mm Ps. 148mm Ps. 1,055mm +42.9% +19.9% +7.4% +32.0% 67% of Aeronautical 19% of 14% of 76% of Total Rev.* Rev. Aeronautical Rev. Aerona
Slide 15: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Historical NAR Growth NAR 3Q16
Slide 16: Non-Aeronautical Business | Commercial Strategy
Non-Aeronautical Business | Commercial Strategy International Franchises Premium Strategy Maximize Innovative & & Commercial Areas Advertising Renowned Local Loyalty Programs Brands Detail of Commercial Initiatives Implemented in 3Q16 Airport Type Quantity Monterrey Passenger Services 1 Durango Hote
Slide 17: Non-Aeronautical Business | Diversification Strategy
Non-Aeronautical Business | Diversification Strategy OMA Carga 10.5% of NAR Real Estate 1.1% of NAR Industrial Park 0.4% of NAR +16.4% revenues in 3Q16 First two warehouses leased Revenue generation since 1,650m2 +11.6% May 2016 New ground cargo facilities revenues in 3Q16 Expected Start of Operatio
Slide 18: Non-Aeronautical Business | Historical NAR Growth
Non-Aeronautical Business | Historical NAR Growth Non-Aeronautical Revenues (NAR) have increased faster than passenger traffic as a result of commercial initiatives and diversification projects Base = 2005 NAR Total Passengers 350 300 +286% 250 200 150 100 +59% 50 0 2005 2006 2007 2008 2009 2010 201
Slide 19: Non-Aeronautical Revenues 3Q16
Non-Aeronautical Business | Non-Aeronautical Revenues 3Q16 Commercial Diversification Complementary Non-Aeronautical Activities Activities Activities Revenues Ps. 163mm Ps. 118mm Ps. 59mm Ps. 339mm (+18%) +10.7% +29.3% +21.6% 24% of Total Rev * Ps. 66.0 / PAX 48% of 35% of 17% of NAR NAR NAR * Total
Slide 20: Financial Results
Financial Results 3Q16 Highlights Profitability Indicators Value Distribution Balance Sheet
Slide 21: Financial Results | 3Q16 Highlights
Financial Results | 3Q16 Highlights Adjusted Consolidated Passengers Revenues* EBITDA** Net Income 5.1mm Ps. 1,394mm Ps. 931mm +12.2% +28.4% +38.3% Ps. 487mm Domestic +14.2% Aeronautical +32.0% 3Q16 Margin 66.8% +59.4% International -2.0% Non-Aero +18.4% 3Q15 Margin 62.0% *Total Revenues not conside
Slide 22: Profitability Indicators: ROA / ROE, Earnings per Share
Financial Results | Profitability Indicators 27.9 30.0 ROA / ROE Percentage 25.0 20.8 20.0 18.8 16.8 15.0 12.8 13.2 10.1 10.9 9.9 10.0 8.2 8.3 6.6 5.0 - 2011 2012 2013 2014 2015 LTM (3Q16) Earnings per Share 4.33 Ps. 3.01 3.15 2.58 2.05 1.54 2011 2012 2013 2014 2015 LTM (3Q16)
Slide 23: Focus on Generating Value
Financial Results | Focus on Generating Value Dividend or Capital Dividend Yield and Payout Reimbursement Ratio Ps. Million Percentage 1,600 Payout Ratio Dividend Yield 1,400 1,400 250 8.6 9.0 1,200 1,200 1,200 8.0 1,200 200 6.9 7.0 1,000 5.7 6.0 150 800 147 4.4 5.0 4.2 4.0 600 117 113 500 100 100 3
Slide 24: Healthy Balance Sheet
Financial Results as of September 2016| Healthy Balance Sheet Strong Financial Position* Low Leverage vs Industry* Ps. Million Net Debt / Adjusted EBITDA 1.0 4,698 2,611 0.9 0.8 0.8 0.7 0.6 2,087 2011 2012 2013 2014 2015 LTM Total Debt Cash Net Debt (3Q16) Debt Profile* Capital Structure Improvement
Slide 25: Master Development Plan
Master Development Plan Investments 2011-2015 Investments 2016-2020 Maximum Tariffs
Slide 26: Master Development Plan | 2011-2015
Master Development Plan | 2011-2015 Total Investment Ps. 3,418mm pesos of Dec. 31st, 2015 100 0 100 % 904 900 851 90% 800 80% Most Important Projects 700 668 70% • MTY Terminal A rehabilitation 600 590 60% • MTY Terminal C expansion 500 50% • MTY Platform expansion 406 400 40% • CUL Runway expansion
Slide 27: Master Development Plan | 2016-2020 Investment
Master Development Plan | 2016-2020 Total Investment Ps. 4,640mm pesos of Dec. 31st, 2015 ZIH, 7% ZCL, 2% 1,6 00 100 % ACA, 13% 1,4 00 1,352 1,297 90% TRC, 3% CJS, 4% 80% TAM, 7% 1,2 00 CUL, 4% 987 70% 1,0 00 60% SLP, 9% 800 50% CUU, 10% 606 40% REX, 8% 29% 600 28% DGO, 3% 400 21% 398 30% MZT, 3% 13
Slide 28: Master Development Plan | 2016-2020 Main Projects
Master Development Plan | 2016-2020 Total Investment Ps. 4,640mm pesos of Dec. 31st, 2015 Terminal Other Expansion & Most Important Projects Remodeling ICAO Certification 6% • Terminal Expansion • Monterrey 7% • Ciudad Juárez • Chihuahua Operational • San Luis Potosí Infrastructure Expansion 11% • T
Slide 29: New Acapulco Airport Terminal
Master Development Plan | New Acapulco Airport Terminal Ps. 547 mm investment 3 levels plus a mezzanine 1.3 mm PAX Capacity Comfort , Safety & Efficiency Beginning 6ofboarding gates July 2016 construction: Termination: 3 security 3T 2018checkpoints Surface: 18,800 Start of m2.: operations* 3Q 2018 *
Slide 30: Maximum Tariffs: Visibility on Aeronautical Revenues Through 2020
Master Development Plan | Maximum tariffs Visibility on Aeronautical Revenues Through 2020 • Maximum rate (Regulated revenue per workload unit) increased in each airport • The maximum rate for each succeeding year through 2020 will be adjusted by inflation and an efficiency factor of 0.70% Airport 2
Slide 31: Outlook
Outlook Company Outlook Industry Trends
Slide 32: Outlook 2016
Outlook | 2016 Passenger Traffic Growth 8%-10% Aeronautical Revenue Growth 24%-26% Non-Aeronautical Revenue Growth 17%-19% Adjusted EBITDA Margin 61%-63% MDP Investments (Ps. Million) 1,500-1,700 Strategic Investments (Ps. Million) 150-250
Slide 33: Positive Trends in the Aeronautical Industry
Outlook | Positive Trends in the Aeronautical Industry Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2016-2035 5.1% 5.0% 2.5 4.9% 2.2 4.6% 3.7% 2.5% 2.1% 0.8 0.5 0.4 0.3 Mexico Argentina Brazil Canada Chile United Mexico Brazil United Canada Russia Central South St
Slide 34: Positive Outlook in Mexico
Outlook | Positive Outlook in Mexico Current Airline Fleets Airline Expansion Orders Airplanes Airplane orders (2013 – 2022) 131 100 70 65 66 52 44 21 9 8 TAR VivaAerobus Volaris Interjet Aeromexico Aeromexico Interjet VivaAerobus Volaris TAR Source: DGAC, Airlines. Latest information available.
Slide 35: Grupo Aeroportuario del Centro Norte
Grupo Aeroportuario del Centro Norte Chief Financial Officer Vicsaly Torres | vtorres@oma.aero | +52.81.8625.4300 Investor Relations Team Emmanuel Camacho | ecamacho@oma.aero | +52.81.8625.4308 Manuel Higinio de León | mdeleon@oma.aero | +52.81.8625.4334 Laury Franco Castillo | lfranco@oma.aero | +5
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