Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q2 2014 Earnings Presentation
44 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, July 2014
Slide 1: Second Quarter 2014
Second 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 11.5% • 2Q14: 3.6 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 13.9 15.0 13.3 12.6 3,500 11.8 11.5 11.6 11.8 3,216 13.0 10.6 3,065 3,000 9.7 2,820 11.0 8.6 8.9 2,459 26% 26% 2,500 2,144 24% 9.0 1,897 1,988 1,896 24% 2,000 1,687 19% 23% 7.0 1,480 18% 19% 1,50
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 119 22 50 46 3 19 1.5% Train 1.6% Orders/ 1.9% 70.7% 118 49 51 52 14 0 additional Sea Transportation Average 9.0 21.6 6.2 4.0 5.0 15.3
Slide 10: OMA Strategy
Increase Aeronautical Develop Air Traffic and Revenues Operational, Security, and Connectivity Efficiency Leadership Sustainable Company New Concession Opportunities 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 +22 net new routes 6M14 connectivity +9.3 passenger growth 6M14 Air international connectivity Air regional connectivity 12
Slide 13: Aeromexico's HUB in Monterrey
Aeromexico’s HUB in Monterrey + 150,000 additional passengers 13
Slide 14: Volaris' Regional HUB in Monterrey
Volaris’ Regional HUB in Monterrey + 255,000 additional passengers +10 new direct routes 14
Slide 15: New Airline: TAR
New Airline: TAR + 135,000 additional passengers +11 new routes 15
Slide 16: Commercial Strategy
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Slide 17: 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. 17
Slide 18: Parking lots improvements
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Slide 19: Magnopantallas
Innovative and alternative advertising Magnopantallas
Slide 20: OMA Premium
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Slide 21: Diversification Strategy
Diversification Strategy
Slide 22: 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: TERMINAL B ESTACIONAMIENTO Ps.160
Slide 23: 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: Ps. 60 million. 23
Slide 24: Operational and Sustainability Leadership
Operational and Sustainability Leadership
Slide 25: Sustainable Management Model
Sustainable Management Model 25 Source: Company filings, GRI Report.
Slide 26: Results & Track Record
Results & Track Record & Track Record Results
Slide 27: Aeronautical Revenues
Aeronautical Revenues 75% of total revenues excluding construction Aeronautical revenue per passenger Ps. 178.2 (Ps. Million) 2Q13 2Q14 % Var Domestic Passenger Charges 372 413 11.0 International Passenger Charges 95 110 15.9 Other Aeronautical Services, Regulated Leases and Access Rights Aeronautic
Slide 28: Non Aeronautical Revenues
Non Aeronautical Revenues 25% of total revenues excluding construction Non Aeronautical revenue per passenger Ps. 58.6 (Ps. Million) 2Q13 2Q14 % Var Commercial Activities 96 104 8.2 Diversification Activities 54 61 12.9 Complementary Activities 30 36 17.8 Cost Recovery 8 9 12.7 11.3% Aeronautical Re
Slide 29: NH Hotel Results
NH Hotel Strong Results NH Hotel Results Mexico City Airport Hotel Market +10.9% vs 2Q13 (Ps. Million) 2Q13 2Q14 % Var RevPAR1: 1,417 Total Revenues 42 49 16.0 Operating Results 12 15 28.0 Occupancy Rate EBITDA 17 20 18.4 EBITDA Margin 40.5% 41.4% Occupancy Rate 83.7% 79.7% Average Daily Room Rate (
Slide 30: Operating Cost and Expenses
Operating Cost and Expenses Operating Cost and Expenses 4.0% (Ps. million) Cost of Services General and Administrative 2Q13 191 131 2Q14 193 133 %Var 1.3 1.3 Expenses Cost of Airport Services +GA 298 298 0.2 Major Maintenance Provision 41 42 2.5 Cost of airport Construction Cost 67 49 (27.2) Concess
Slide 31: 2Q14 Highlights
2Q14 Highlights (Million Passengers and Million Pesos) 2Q13 2Q14 %Var c Passenger Traffic 3.2 3.6 11.5 Aeronautical+Non 761 847 11.4 Aeronautical Revenues Construction Revenues 67 49 (27.2) Total Revenues 828 896 8.3 Income from Operations 314 362 15.3 1 Adjusted EBITDA 405 457 12.8 Adjusted EBITDA
Slide 32: 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 9% 5% CAGR 3,500 Financial Downturn 15% 2,900 1200 14 14 13 14 16 09-13 3,000 15% 3.6% 12 12 12 12 13 14 5% 13% 2,400 1
Slide 33: 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 34: Focus on Generating Value
Focus on Generating Value ROA/ROE EPS 25.0 3.19 Percentage Pesos 3.01 20.0 ROA ROE 22.1 18.8 15.0 2.05 12.8 1.65 1.54 10.0 11.2 10.9 1.37 10.1 1.19 8.2 8.8 7.2 7.6 5.0 6.1 6.6 5.5 4.6 0.0 2008 2009 2010 2011 2012 2013 LTM 1 2008 2009 2010 2011 2012 2013 LTM 1 1As of June 2014. 34
Slide 35: Balance Sheet
Balance Sheet Net Debt as of June 2014 Debt Maturity Profile Million Pesos Million Pesos UPS Comercial Paper OMA11 OMA13 OMA14 6,213 4,497 3,000 1 1,300 1,500 1,716 1,716 99 42 42 39 34 78 less 1 year 1 year 2 years 3 years 4 years 5 years + Total Debt Cash Net Debt 1 Initially due on 2016. Prepaid
Slide 36: 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 37: Subsequent Events
Subsequent Events Prepayment of Ps. 1,300 million in OMA11 notes: On July 11, 2014, OMA prepaid the Ps. 1,300 million in long term notes issued in 2011 using a part of the proceeds of the OMA14 notes issued on June 16, 2014 for Ps. 3,000 million. Second capital reimbursement payment of Ps. 300 milli
Slide 38: Outlook
Outlook Real 2T14 2014E Passenger Traffic Growth 11.5% 6%-8% Aeronautical and Non Aeronautical Revenue Growth 1.4% 9%-11% Adjusted EBITDA 53.9% 52%-54% MDP Investments 152 mdp 850-1,100 mdp OMA is providing this outlook based on internal estimates. A number of factors could have a significant effect
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) — Q2 2014 Earnings Presentation on 6ix