Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q3 2015 Earnings Presentation
30 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, 2015
Slide 1: Third Quarter 2015 Results
aRalicom@lerclacsie 2015 Results
Slide 2: Investment Highlights
Investment Highlights Positioned to take full advantage of global growth Diversified business model Well-defined strategy to capitalize on favorable industry dynamic Successful commercial and diversification strategy Track record of operating and financial performance Solid capital structure Well-de
Slide 3: Contents
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Contents Company Overview Commercial and Diversification Strategy Strong Financial Position Aeronautical Business Operational & Sustainability Leader
Slide 4: Company Overview
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Company Overview Historical Performance 3Q 2015 Highlights Shareholders Business Strategy
Slide 5: Historical Performance
Historical Performance Positive tendency despite adverse economic & industry conditions Aeronautical Revenues Non Aeronautical Revenues Passenger Traffic (million) 16.5 4,900 14.2 14.1 14.7 1 16.0 CAGR 13.3 3,905 4,400 12.6 14.0 2002-2014 3,900 11.8 11.5 11.6 11.8 3,422 10.6 3,065 26% 12.0 9.7 3,400
Slide 6: 3Q15 Highlights
3Q15 Highlights Adjusted Consolidated Passengers Revenues* EBITDA** Net Income 4.6m Ps. 1,079m Ps. 673m +15.8% +19.3% +29.1% Ps. 305m Domestic +14.8% Aeronautical +16.1% 3Q15 Margin 62.4% +12.9% International +23.3% Non-Aero +29.7% 3Q14 Margin 60.3% * Total Revenues not considering Construction Reve
Slide 7: Shareholders
Shareholders AEROINVEST, 23.80% 20.9% (B Shares) SETA- AEROINVEST, 12.40% SETA, 16.7% 16.70% (BB Shares) PUBLIC FLOAT, 62.4%* 59.50% SETA-ADPM, (B Shares) SETA-ADP, 4.30%4.30% (B Shares) *Includes 7,250,623 repurchased shares as of September 3oth, 2015 (1.8% of total shares).
Slide 8: Business Strategy
Business Strategy Operational, Security & Efficiency Leadership Maximize Aeronautical Maximize Non-Aeronautical Revenues Revenues Air Traffic & Connectivity Improve Passenger Experience Development Diversification Business Sustainable Company
Slide 9: Aeronautical Business
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Aeronautical Business Synergy with Airlines Connectivity Passenger Traffic Airline Participation Aeronautical Revenues 3Q15
Slide 10: Airline Synergy
Airline Synergy Important Projects in 2014... Aeromexico Volaris Interjet Operations with New Regional HUB in MTY Secondary Base in MTY Secondary Base in MTY Airline TAR 11 new routes in 2014 21 new routes in 2014 9 new routes in 2014 12 new routes in 2014
Slide 11: Connectivity
Connectivity 13 new direct routes in 9M15 Domestic Routes Airline Monterrey – Toluca Aeromexico Acapulco – Tijuana Interjet Durango – Puerto Vallarta TAR Mazatlán – Guadajalara TAR Mazatlán – La Paz TAR Culiacán – La Paz Volaris Culiacán – San José del Cabo Volaris Torreón – Guadalajara Volaris Torr
Slide 12: Passenger Traffic
Passenger Traffic (+14%) Airport Types (%Part) Metropolitan (50.2%) Passenger Traffic 3Q2015 Border Cities ( 8.1%) Tourist (12.8%) • Total Pax: 4.6 million (+15.8%) (+16%) Regional (28.9%) • Domestic: 4.0 million (+14.8%) (2%) (+21%) • International: 0.6 million (+23.3%) (+10%) (+7%) (+20%) (+16%) (
Slide 13: Airline Participation
Airline Participation Domestic Passengers International Passengers 8% 14% 20% 31% 4% 17% 4% Alaska A. 4% 5% 19% 21% 22% 12% 16%
Slide 14: Aeronautical Revenues 3Q15
Aeronautical Revenues 3Q15 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps. 495m Ps. 167m Ps. 138m Ps. 800m +8.5% +49.0% +14.2% +16.1% 62% of 21% of 17% of 74% of Total Rev.* Aeronautical Rev. Aeronautical Rev. Aeronautical Rev. Ps. 175 / PAX * To
Slide 15: Non-Aeronautical Business
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Non-Aeronautical Business Commercial Strategy Diversification Strategy Historical Non-Aeronautical Revenue Performance Non-Aeronautical Revenues 3Q15
Slide 16: Commercial Strategy
Commercial Strategy Innovative Maximize International Premium Strategy Advertising Commercial Areas Franchises & & Loyalty Programs Renowned Local Brands Commercial Initiatives Implemented in 3Q15 Type Quantity Acapulco, Culiacan y Chihuahua Advertising 4 Ciudad Juarez, San Luis y Zihuatanejo Retail
Slide 17: Diversification Strategy
Diversification Strategy OMA Carga - Logistics Center Hotel NH-T2 Real Estate Development Av. Rate Ps.1,881 Occ. Rate 81.5% %EBITDA 9M15 +154% revenues in 3Q15 38.8% Industrial Park| OMA-VYNMSA Hotel Hilton Garden Inn - MTY Beginning of Operations First August 27th warehouse ready to be Av. Rate lea
Slide 18: Historical Non-Aeronautical Revenue Performance
Historical Non-Aeronautical Revenue Performance Non-Aeronautical Revenues (NAR) have increased faster than passenger traffic as a result of commercial initiatives and diversification projects 179.1 Percentage Change NAR Total Passengers 2009 = 0 140.9 115.6 86.6 59.4 43.1 33.2 27.6 9.3 15.4 0.0 0.6
Slide 19: Non-Aeronautical Revenues 3Q15
Non-Aeronautical Revenues 3Q15 Commercial Diversification Complementary Non-Aeronautical Activities Activities Activities Revenues Ps.143m (+26.3%) Ps. 89m (+37.2%) Ps. 48m (+27.1%) 52% of Non-A. Rev. 32% of Non-A. Rev. 17% of Non-A. Rev. Ps. 279m (+29.7%) 26% of Total Rev * Main Activities Main Act
Slide 20: Operations & Sustainability Leadership
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Operations & Sustainability Leadership 2014 Culiacán Airport Mazatlán Airport
Slide 21: Strong Financial Position
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Strong Financial Position Profitability Indicators Value Distribution Healthy Balance Sheet Master Development Plan
Slide 22: We Continue to Improve Profitability
We Continue to Improve Profitability ROA / ROE 25.0 18.8 20.1 20.0 Percentage 16.8 15.0 12.8 10.1 10.9 8.2 8.2 9.2 6.6 10.0 5.0 - 2011 2012 2013 2014 LTM Earnings per Share 3.01 2.58 2.85 Ps. 2.05 1.54 2011 2012 2013 2014 LTM
Slide 23: Focus on Generating Value
Focus on Generating Value Historical Dividend or Capital Dividend Yield and Payout Reimbursement Ratio Ps. Million 1,400 Percentage Payout Ratio Dividend Yield Título del gráfico 1,200 1,200 1,200 250 8.6 10.0 6.9 1,200 5.7 1,000 4.2 4.4 200 5.0 800 150 147 0.0 117 600 500 100 400 100 81 -5.0 61 400
Slide 24: Healthy Balance Sheet
Healthy Balance Sheet Strong Financial Position Low Leverage vs Industry Ps. Million Net Debt / Adjusted EBITDA 1.0 1.0 0.9 0.8 0.8 4,723 2,389 0.6 2,334 2,334 Total Debt Cash Net Debt 2010 2011 2012 2013 2014 LTM Debt Profile 5% USD Capital Structure Improvement Total Debt | Shareholders’ Equity 1%
Slide 25: Master Development Plan
Master Development Plan Additional Recognition of MDP* Investment in Land Recognized Land Acquired 147 Federal Government agreed to recognize land 146 326 reserve for Ps. 487 million acquired for Culiacan and 579 Monterrey airports as improvements to concession 82 5 537 assets. 469 454 We are curren
Slide 26: Industry and Company Outlook
1 2 3 4 5 6 Company Overview Aeronautical Business Com & Div Strategy Operations & Sustainability Strong Financial Position Industry & Company Outlook Industry and Company Outlook Industry Trends Company Outlook 2015
Slide 27: Positive Trends in the Aeronautical Industry
Positive Trends in the Aeronautical Industry Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2014-2033 2.4 6.0% 2.0 5.6% 4.7% 4.7% 2.5% 0.8 1.9% 2.0% 0.5 0.3 0.2 Mexico Argentina Brazil Canada Chile United Mexico Brazil United Canada Russia Central South States State
Slide 28: Positive Outlook in Mexico
Positive Outlook in Mexico Airlines’ Fleet Airlines’ Expansion Orders Airplanes Airplane orders (2013 – 2022) 122 100 70 54 55 52 44 18 8 3 TAR Vivaaerobus Interjet Volaris Aeromexico Aeromexico Interjet Vivaaerobus Volaris TAR Source: DGAC, Airlines. Last information available. Source: DGAC, Airlin
Slide 29: Outlook 2015
Outlook 2015 Current Previous Passenger Traffic Growth 13%-15% 10%-12% Aeronautical Revenue Growth 16%-18% 13%-15% Non-Aeronautical Revenue Growth 23%-26% 18%-20% Adjusted EBITDA Margin 57%-60% 56%-58% MDP Investments (Ps. Million) 500-700 500-700 Strategic Investments (Ps. Million) 100-200 100-200
Slide 30: Investor Relations Contacts
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 Investor Relations in USA Daniel Wilson | Zemi Communications dbmwilson@zemi.com |
OMA (Grupo Aeroportuario del Centro Norte) — Q3 2015 Earnings Presentation on 6ix