Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Central North Airport Group — Q2 2016 Earnings Presentation
43 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Jul 26, 2016
Slide 1: OMA announces Second Quarter 2016 Operational and Financial Results
OMA announces Second Quarter 2016 Operational and Financial Results Monterrey, Mexico, July 25, 2016 — Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated results for the second quarter of 20
Slide 2: Unless
1 Unless otherwise stated, all references are to the second quarter of 2016 (2Q16), and all percentage changes are with respect to the same period of the prior year. The exchange rates used to convert foreign currency amounts were Ps. 18.3207 per U.S. dollar as of June 30, 2016 and Ps. 15.4816 per U
Slide 3: Investor and media relations contacts
Chief Financial Officer: Investor Relations: Media Relations: Strategicpartners OMAislisted Visesly Torres Ruiz Emmanuel Camacho ManuelHiginiodeLeén Paola Fernandez ICAl oe QMBB +52 (@2) 8625 490 +52 (Bs) 8525 4308 +52 (62) 8525 4334 +52 (2) 8625 4300 =e os \torres@oma 26r0 eeamacho@oma.aero —_mdele
Slide 4: The principal results of the second quarter include
The principal results of the second quarter include: § Total terminal passenger traffic increased 8.7% to 4.5 million in 2Q16. Domestic traffic increased 10.4%, while international traffic decreased 2.3%. The Monterrey, Ciudad Juárez, Culiacán, Durango, and Chihuahua airports had the most growth. §
Slide 5: 2Q16 Operating Results
2Q16 Operating Results Passenger Traffic, Flight Operations, and Cargo Volumes The total number of flight operations (takeoffs and landings) increased 3.5% to 88,838 operations. Domestic flight operations increased 4.9%, and international operations decreased 5.6%.
Slide 6: Total passenger traffic increased 8.7%
Total passenger traffic increased 8.7% (+364,875 passengers). Of total passenger traffic, 88.0% was domestic, and 12.0% was international. Commercial aviation accounted for 98.1% of passenger traffic. Monterrey generated 49.8% of passenger traffic, Culiacán 9.0%, and Chihuahua 6.6%. Domestic passeng
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Slide 8: International passenger traffic decreased 2.3%
International passenger traffic decreased 2.3%. Seven airports increased international traffic. Durango (+93.9%; +4,568 passengers) had the largest increase as a result of traffic growth on its Chicago route. Monterrey (-6.1%, -19,906) had the largest decrease, principally because of reductions on t
Slide 9: Hotel Services and Consolidated Financial Results
Hotel Services · NH Collection Terminal 2 Hotel had a 77.7% occupancy rate, with a 10.8% increase in the average room rate to Ps. 2,117 per night. Revenues increased 7.0% to Ps. 56 million. · Hilton Garden Inn had a 77.0% occupancy rate, with an average room rate of Ps. 1,964. Revenues reached Ps. 2
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Slide 11: Commercial activities revenues
Commercial activities contributed an incremental Ps. 27 million (+18.6%). The line items that had the largest variations were: § Advertising revenues (+30.0%; +Ps. 8 million), as a result of the start of the contract with a new operator. § Restaurants (+32.6%; +Ps. 5 million), principally as a resul
Slide 12: Car rental, retailers, diversification and complementary activities
§ Car rental (+36.7%; +Ps. 5 million) as a result of increased participation revenues and two new contracts in the Zihuatanejo airport. § Revenue from retailers (+26.5%; +Ps. 5 million), as a result of increased passenger traffic, new stores, and changes in the mix of stores since 2Q15, including fi
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Slide 14: Maintenance provision and operating costs
The maintenance provision was unchanged from 2Q15. The balance of the maintenance provision as of June 30, 2016 was Ps. 678 million, compared to Ps. 604 million at the end of 2015. Construction costs are equal to construction revenues and generate neither gains nor losses. The airport concession tax
Slide 15: Operating costs and expenses table
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Slide 16: Adjusted EBITDA and Operating Income
Adjusted EBITDA and Operating Income As a result of the Company’s continuing initiatives to increase revenues and control costs and expenses, Adjusted EBITDA increased 36.8% to Ps. 808 million. The Adjusted EBITDA margin rose 478 basis points to 62.5%. (See Notes to the Financial Information for add
Slide 17: Financing Expense
Financing Expense Financing expense decreased to Ps. 32 million. This was the result of an exchange gain, as compared to a loss in 2Q15.
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Slide 19: MDP and Strategic Investment Expenditures
MDP and Strategic Investment Expenditures Total 2Q16 investment expenditures for MDP projects and strategic investments [3] were Ps. 142 million. Strategic investments were Ps. 85 million. Expenditures under the MDP were Ps. 47 million in improvements to concessioned assets, Ps. 9 million were appli
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Slide 21: Debt
Debt As of June 30, 2016, total debt was Ps. 4,699 million and net debt was Ps. 2,782 million. The ratio of net debt to Adjusted EBITDA was 0.98. Of total debt, 95% was denominated in Mexican pesos, and 5% in U.S. dollars.
Slide 22: Derivative Financial Instruments
Derivative Financial Instruments As of the date of this report, OMA has no derivatives exposure.
Slide 23: Cash Flow Statement
Cash Flow Statement For the first six months of 2016, operating activities generated cash of Ps. 897 million, a decrease compared to the same period of 2015, as a result of an increase in accounts receivable and taxes paid. Investing activities used cash of Ps. 120 million. The most important line i
Slide 24: Material and Subsequent Events
Material and Subsequent Events Start of Construction of the new Acapulco Airport Terminal: On July 13, 2016, the inauguration ceremony for the construction of the new terminal took place; the total estimated investment is Ps. 547 million, to be executed over 20 months. Expansion and Remodeling of th
Slide 25: Revised 2016 Outlook
Revised 2016 Outlook As a result of the increase in traffic volumes in the first six months of 2016 above the levels expected, and taking into account the optimization of specific aeronautical tariffs at the Group’s airport, OMA is revising its outlook for 2016. OMA estimates that total passenger tr
Slide 26: Annex Table
Annex Table 1
Slide 27: Total passengers by airport
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Slide 28: Annex Table
Annex Table 2
Slide 29: Statement of financial position
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Slide 30: Annex Table
Annex Table 3
Slide 31: Income statement
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Slide 32: Annex Table
Annex Table 4
Slide 33: Cash flow statement
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Slide 34: Annex Table
Annex Table 5
Slide 35: Adjusted EBITDA reconciliation
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Slide 36: Annex Table
Annex Table 6
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Slide 38: Annex Table
Annex Table 7
Slide 39: Analyst coverage
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Slide 40: Notes to the Financial Information
Notes to the Financial Information Financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), and presented in accordance with IAS 34 “Interim Financial Reporting.” Adjusted EBITDA: OMA defines Adjusted EBITDA as EBITDA less construction revenue plus c
Slide 41: Notes: construction revenue and cost
del Centro Norte, S.A. de C.V., and c) related to or occurring during the baggage screening undertaken by OMA Servicios Complementarios del Centro Norte, S.A. de C.V. Construction revenue, construction cost: IFRIC 12 “Service Concession Arrangements” addresses how service concession operators should
Slide 42: Notes: maximum rate system and definitions
Maximum Rate System: The Ministry of Communications and Transportation (SCT) regulates all our aeronautical revenues under a maximum rate system, which establishes the maximum amount of revenues per workload unit (one terminal passenger or 100kg of cargo) that may be earned by each airport each year
Slide 43: Forward-looking statements
This report 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 may be
Central North Airport Group — Q2 2016 Earnings Presentation on 6ix