Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q3 2014 Earnings Presentation
44 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, 2014
Slide 1: Third Quarter 2014
Third Quarter 2014
Slide 2: Investment Highlights
Investment Highlights 1 Mexican airport portfolio positioned to take full advantage of global growth. 2 Diversified business model contributing to earnings resilience. 3 Well-defined strategy to capitalize favorable industry dynamic in traffic increases and profitability. 4 Successful implementation
Slide 3: Company Overview
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Slide 4: Passenger Traffic
Passenger Traffic 9.2% • 3Q14: 4.0 MPAX Metropolitan Regional Tourist Border Cities NH Hotel 4
Slide 5: Historical Performance
A History of Successful Milestones Historical Performance Revenue figures in Ps. million 4,000 14.2 14.1 14.2 15.0 13.3 12.6 1 3,500 11.8 11.8 3,311 13.0 11.5 11.6 3,065 10.6 3,000 9.7 2,820 11.0 26% 8.6 8.9 2,459 26% 2,500 24% 9.0 2,144 1,897 1,988 1,896 24% 2,000 7.0 1,687 23% 1,480 18% 19% 19% 1,
Slide 6: Shareholders
Shareholders Mexico’s leading construction and infrastructure operations company, with important operations in Latin America and Europe. AEROINVEST, 24.70% SETA- 1 SETA AEROINVEST, 16.70% 12.40% Company that specializes in airport management PUBLIC FLOAT, 2 around the world, as well as participation
Slide 7: Industry Outlook
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Slide 8: Positive Trends in Aeronautical Industry
Projected GDP GAGR1 2012-2030 Projected Domestic Passenger Traffic CAGR1 2013-2032 Positive Trends in Aeronautical Industry 1 Air Passenger Transport per Capita Projected Domestic Passenger Traffic CAGR 2013-2032 5.7% 5.7% 5.0% 5.0% 2.3 2.1 3.2% 2.1% 2.3% 1.9% 0.7 0.3 0.2 0.5 Mexico Argentina Brazil
Slide 9: Positive Outlook in Mexico
Positive Outlook in Mexico Travelers in Mexico by Type of Transportation Airlines’ Fleet and Expansion Plans Economy bus Airplane 23.9% 0.4% Executive bus Airplanes 124 21 49 48 3 19 1.5% Train 1.6% Orders/ 1.9% 70.7% 100 52 80 44 - 9 additional Sea Transportation Average 9.3 20.6 6.0 5.7 12.3 16.0
Slide 10: OMA Strategy
Increase Aeronautical Revenues Operational, Security, and Efficiency Leadership Develop Air Traffic and Sustainable Company Connectivity OMA Strategy Diversification Increase Non- Aeronautical Revenues Improve Passenger Experience
Slide 11: Air Traffic Development Strategy
Air Traffic Development Strategy
Slide 12: Develop Air Traffic and Connectivity
Develop Air Traffic and Connectivity Air national +45 net new routes 9M14 connectivity +9.2% passenger growth 9M14 Air international connectivity Air regional connectivity 12
Slide 13: Aeromexico's HUB in Monterrey
Aeromexico’s HUB in Monterrey +12 new direct routes + 213,000 additional passengers per year 13
Slide 14: Volaris' Regional HUB in Monterrey
Volaris’ Regional HUB in + 466,000 additional Monterrey passengers per year +27 new routes 14
Slide 15: Interjet's Regional HUB in Monterrey
Interjet’s Regional HUB in Monterrey +9 new direct routes + 241,000 additional passengers per year 15
Slide 16: New Airline: TAR
New Airline: TAR + 145,000 additional passengers +10 new routes 16
Slide 17: Commercial Strategy
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Slide 18: Commercial key points
Commercial key points • Maximize commercial areas. • Increase presence of international franchises and renowned local brands. • Introduce “Premium” strategy focus and loyalty programs. • Innovative and alternative advertising. 18
Slide 19: Parking lots improvements
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Slide 20: Magnopantallas
Innovative and alternative advertising Magnopantallas
Slide 21: OMA Premium
"Mas que una sala de espera, el upgrade en miestancia” J Premium Lounge 1} \ 7 Dey oil n i. ; ] ‘ y Bienvenido Priority Pass. «Area de fumar * Bocadillos * Bebidas con/sin alcohol * Business Center Wi-Fi Premium Lounge te
Slide 22: Diversification Strategy
Diversification Strategy
Slide 23: Monterrey Airport Hotel
Monterrey Airport Hotel Monterrey Airport Hotel TERMINAL A • Partnership: Grupo Hotelero Santa Fe with15% stake and OMA 85%. ESTACIONAMIENTO • Completition and opening 1Q15. GLORIETA ACCESO/SALIDA • 134 rooms. PUENTE CONEXION MOTOR LOBBY • Expected investment 2014 from TERMINAL B ESTACIONAMIENTO OMA
Slide 24: Industrial Park at Monterrey Airport
Industrial Park at Monterrey Airport Industrial Park at Monterrey Airport • Joint venture: OMA 51%- VYNMSA 49%. • 32 hectares. • Urbanization works and first warehouse (5,000 m2) . • Expected investment 2014 from OMA: Ps. 24 million. 24
Slide 25: Operational and Sustainability Leadership
Operational and Sustainability Leadership
Slide 26: Sustainable Management Model
Sustainable Management Model 26 Source: Company filings, GRI Report.
Slide 27: Results & Track Record
Results & Track Record & Track Record Results
Slide 28: Aeronautical Revenues
Aeronautical Revenues 75% of total revenues excluding construction Aeronautical revenue per passenger Ps. 174.2 (Ps. Million) 3Q13 3Q14 % Var Domestic Passenger Charges 406 456 12.3 International Passenger Charges 100 112 11.9 Aeronautical Services, Regulated Leases and Access Rights Aeronautical Re
Slide 29: Non Aeronautical Revenues
Non Aeronautical Revenues 25% of total revenues excluding construction Non Aeronautical revenue per passenger Ps. 56.5 (Ps. Million) 3Q13 3Q14 % Var Commercial Activities 105 112 6.3 Diversification Activities 59 65 10.5 Complementary Activities 34 37 8.7 Cost Recovery 9 10 10.6 8.1% Non Aeronautica
Slide 30: NH Hotel Strong Results
NH Hotel Strong Results NH Hotel Results Mexico City Airport Hotel Market +1.9% vs 3Q13 (Ps. Million) 3Q13 3Q14 % Var RevPAR1: 1,427 Total Revenues 47 49 5.1 Operating Results 14 15 5.2 Occupancy Rate EBITDA 20 20 3.5 EBITDA Margin 42.0 41.4% Occupancy Rate 85.5% 82.1% (343) bp Average Daily Room Ra
Slide 31: Operating Cost and Expenses
Operating Cost and Expenses Operating Cost and Expenses 6.9% (Ps. million) Cost of Services General and Administrative 3Q13 187 129 3Q14 193 129 %Var 3.3 (0.4) Expenses Cost of Airport Services +GA 316 322 1.8 Major Maintenance Provision 41 42 2.8 Cost of airport Construction Cost 52 90 72.3 Concess
Slide 32: 3Q14 Highlights
3Q14 Highlights (Million Passengers and Million Pesos) 3Q13 3Q14 %Var c Passenger Traffic 3.6 4.0 9.2 Aeronautical+Non 817 912 11.6 Aeronautical Revenues Construction Revenues 52 90 72.3 Total Revenues 869 1,002 15.3 Income from Operations 352 449 27.7 1 Adjusted EBITDA 444 545 23.0 Adjusted EBITDA
Slide 33: Diversification and Cost Control
OMA’s Strategy has resulted in Strong Traffic, Revenues and Adjusted EBITDA Growth Diversification and Cost Control Million of terminal passengers and Million of Pesos Y-o-Y growth 8% 3,500 1200 14 14 14 16 9% 2,900 13 CAGR 15% Financial Downturn 14 09-13 3,000 1000 12 12 12 12 13 858 15% 796 3.6% 1
Slide 34: Focus on Generating Value
Focus on Generating Value Historical Dividend / Capital Reimbursement Dividend Yield and Payout Ratio 1,400 1,600 9 Million Pesos Percentage 8.6 1,200 1,400 Título del gráfico 6.9 8 1,200 1,200 7 1,000 1,200 5.7 5.2 147 100 6 800 1,000 4.5 4.2 5 800 600 4 600 3 400 500 400 400 400 400 81 2 200 200 7
Slide 35: Focus on Generating Value
Focus on Generating Value ROA/ROE EPS Percentage Pesos ROA ROE 25.0 3.21 3.01 20.0 21.9 18.8 2.05 15.0 1.65 1.54 10.0 12.8 1.37 11.2 10.9 10.4 1.19 10.1 5.0 7.2 7.6 8.2 6.1 6.6 5.5 4.6 - 2008 2009 2010 2011 2012 2013 LTM 1 2008 2009 2010 2011 2012 2013 LTM 1 1As of September 2014. 35
Slide 36: Balance Sheet
Balance Sheet Current Portion of Long Cash and Equivalents Term Debt Debt Maturity Profile 0.3% 21.3% Long Term Debt Other Current Assets 38.3% Million Pesos 6.2% Major Maintenance Land, Buildings, 18.0% Provision 4.9% 3,000 Machinery and Equipment Other Liabilities 8.9% Investment in Airport Conces
Slide 37: MDP
1,2 MDP Million Pesos 147 146 326 Additional Recognition of Land Acquired 579 82 5 537 454 469 Federal Government agreed to recognize land reserve for Ps. 487 million acquired for Culiacan and Monterrey 107 airports as improvement in concession assets. 218 2011 2012 2013 2014 2015 MDP Investment in
Slide 38: Outlook
Outlook 2014E (Previous) 2014E (Revised) Passenger Traffic Growth 6%-8% 8%-10% Aeronautical and Non Aeronautical Revenue 9%-11% 10%-12% Growth Adjusted EBITDA 52%-54% 54%-56% MDP Investments 850-1,100 mdp OMA is providing this outlook based on internal estimates. A number of factors could have a sig
Slide 39: Monterrey
Results & Monterrey Track Record
Slide 40: Culiacán
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Slide 41: Zihuatanejo
Zihuatanejo
Slide 42: San Luis Potosí
San Luis Potosí
Slide 43: Acapulco
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Slide 44: Mazatlán
Mazatlan AEROPUERTO INTERNACIONAL DE MAZATLAN
Grupo Aeroportuario del Centro Norte (OMA) — Q3 2014 Earnings Presentation on 6ix