Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Q3 2021 Earnings Presentation
46 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's earnings presentation, November 2021
Slide 1: Corporate Presentation Third Quarter Results 2021
dK ‘Grupo <s Aeroportuari del Pacifico. \ | Corporate Presentation Fi hird Quarter Results 2021 7. 2. } a i , a F 4 : ; ae | ‘ A
Slide 2: Disclaimer
Consolidated figures for 2015 include information for Montego Bay Airport as if the acquisition had taken place January 1, 2015 (rather than April 1, 2015). T h e C o m pa n y t o o k c o n t r o l o f t h e K i n g s to n a i r p or t i n O ct o b er 2 0 1 9 ; t h er e f or e , we i n c l u d e i n
Slide 3: Company Overview
Company Overview
Slide 4: Airport portfolio
Mexicali Aguascalientes Tijuana Guanajuato Hermosillo Morelia Los Mochis La Paz Montego Bay Los Cabos Kingston Puerto Vallarta Guadalajara Manzanillo 4
Slide 5: Investment highlights
➢ Highly diversified portfolio of airports ➢ Resilient business model with a solid regulatory framework ➢ Visibility on tariffs and capital investments until 2024 ➢ High yield commercial businesses ➢ Committed with ESG best practices ➢ Healthy leverage position ➢ Constant Shareholders’ distributions
Slide 6: Capital Stock
CMA 1 AENA 66.7% 33.3% AMP 2 Public Float 15% 85% Capital Stock 6 Series BB (AMP): 84,150,000 12 airports MEX & Series B (Public Float): 430,555,326 DCA 4 KIN 3 Series B (Repurchased): 10,870,221 100% 100% Total Shares: 525,575,547 MBJ 5 74.5% 1 Controladora Mexicana de Aeropuertos 2 Aeropuertos Mex
Slide 7: Actions taken during the pandemic
➢ Infrastructure was adapted to enhance safety & hygiene protocols across all airports to protect the well-being of passengers and personnel ➢ Drawdown of credit lines and issuance of bonds certificates for $6,200 million, jointly ➢ Operational areas were closed to control the cost of service, which
Slide 8: 9M21 key figures
MXP 30.2 million 10,997 million Passengers Revenues1 57.9% vs 2020 57.1% vs 2020 16.1% vs 2019 3.9% vs 2019 MXP 2,800 million MXP CAPEX 7,653 million EBITDA, Margin1 68.6% 88.8% vs 2020 3.8% vs 2019 MXP 6,015 million MXP Shareholders’ distributions 4,241 million Net Income 168.7% vs 20
Slide 9: Cash flow and liquidity
➢ Positive cash flow from operating activities ➢ Outstanding liquidity recovery Figures expressed in MXP millions 9
Slide 10: Outlook and recovery expectations
➢ New projections from Banxico regarding GDP growth of 6.15% for 2021 and 2.88% for 2022 is anticipated; therefore, a more accelerated economic recovery is expected in México ➢ Increased confidence of the international passenger due to the application of vaccines ➢ More rapid traffic recovery due to
Slide 11: Operational Information
Operational Information
Slide 12: Passenger traffic and GDP growth
60.0 50.0 PASSENGERS CAGR1 1999-2019: 5.1% 41 44 40.0 AVERAGE GDP GROWTH 40 1999-2019: 2.1% 36 millions 30.0 33 Asientos Pasajeros 28 25 25 24 23 20.0 22 21 21 20 20 19 19 18 16 16 16 16 15 10.0 - PASSENGERS CAGR 2012-2019: 10.8% source: IATA AirportsIS, GAP 1Compound Annual Growth rate in a prepand
Slide 13: GAP operated 5 of the top-ten busiest airports in Mexico
DURING 9M21 GAP OPERATED 5 OF THE TOP-TEN BUSIEST AIRPORTS IN MEXICO 13 Source: Passenger traffic reports as of September 30, 2021: GAP, OMA, ASUR, AICM & ASA
Slide 14: Airline fleet recovery
Fleet 2020 Fleet 2021 Airline pre-COVID 1Q21 2Q21 3Q21 82 87 92 94 -18.0% fleet vs 2020 pre-COVID fleet 37 44 48 48 125 106 118 122 * 78 - - - Total 322 237 258 264 14 Source: Volaris, Viva and Aeromexico 3Q21 Reports; Interjet :SCT 2Q21 national fleet statistic
Slide 15: Passenger traffic by airport 9M21
Change Airport 9M21 vs 9M19* vs 9M20 20 vs 19 19 vs 18 18 vs 17 17 vs 16 16 vs 15 Guadalajara 8,641.5 -21.4% 53.3% -45.3% 3.4% 12.1% 12.4% 16.4% Tijuana 6,922.3 5.1% 61.0% -29.2% 13.9% 10.3% 12.2% 30.0% 79.5% Los Cabos 3,907.5 -7.2% 91.2% -45.4% 6.9% 6.9% 15.6% 16.3% Puerto Vallarta 2,752.1 -27.4% 4
Slide 16: Historical passenger traffic by airport
Airport 2020 2019 2018 2017 2016 Guadalajara 8,125.6 14,846.3 14,351.6 12,808.0 11,395.8 Tijuana 6,316.6 8,925.9 7,835.1 7,103.2 6,332.5 Los Cabos 3,064.2 5,609.1 5,249.0 4,909.7 4,248.0 Puerto Vallarta 2,536.1 5,051.9 4,767.1 4,522.6 4,063.3 Montego Bay 1,610.5 4,707.7 4,482.4 4,225.6 3,901.6 Guana
Slide 17: Aeronautical Business
Aeronautical Business
Slide 18: Aeronautical revenues
➢ Represents ~75% of total revenues ➢ In 2020, decrease of only 31.5% vs 2019, despite passenger traffic decrease of 43.9% Figures in MXP millions 18
Slide 19: Commercial Revenues
Commercial Revenues
Slide 20: Commercial revenues
Commercial re Y México - Business operated directly by us ™ Mexico - Third parties m Jamaica - Total 2,983 : 2,573 ‘ aa ‘ «2449 2,246 2,274 . [247.1% BEEYA! +22.2% | 436 ETI | 30.0% | 1,783 333 1,184 1,958 936 ue 1,676 7 1,448 . a — 1,185 Be | -33.2% 228 920 706 758 939 636 574 553 ran pone ; ue {44
Slide 21: Commercial strategy
New business lines • Launch loyalty program • Develop new business lines according to passenger needs • Mix uses complex building in Guadalajara, that includes a hotel, offices and commercial square meters Expansions • Increase in commercial square meters and parking lots • More business units opera
Slide 22: Commercial revenues by business line
Change Change 9M19 9M20 9M21 21 vs 19 21 vs 20 Businesses operated by third parties: Duty-free 388,398 231,790 375,606 (3.3%) 62.0% Food and beverage 361,009 221,641 367,414 1.8% 65.8% Retail 282,403 186,678 285,563 1.1% 53.0% Car rentals 280,811 208,228 288,053 2.6% 38.3% Leasing of space 184,703 1
Slide 23: Financial Information
Financial Information
Slide 24: Financial drivers and targets
Financial Drivers Financial Targets ➢ Maintain healthy financial levels ➢ Net debt to EBITDA: below 3.0x ➢ Preserve liquidity ➢ Capital Structure: 70 / 30 ➢ Optimize operational leverage ➢ WACC: below 9.0% ➢ Comply with debt covenants ➢ Maintain investment grade ➢ Improve WACC ➢ Distribution policy:
Slide 25: Revenues, EBITDA, net income and cash flow
Total Revenues1 Net Income MXP MILLION MXP MILLION 68.4% EBITDA Cash Flow from Operating Activities MXP MILLION 69.5% MXP MILLION 69.9% EBITDA1 Margin 69.8% 60.2% 71.5% 70.1% 68.0% 67.2% 65.7% 66.% 1 Excluding IFRIC 12 25
Slide 26: 9M21 income statement
9M19 9M21 Change Revenues Aeronautical services 7,776,615 8,412,610 8.2% Non-aeronautical services 2,808,953 2,584,554 (8.0%) Improvements to concession assets (IFRIC 12) 1,066,398 2,829,371 165.3% Total revenues 11,651,966 13,826,535 18.7% Operating costs Costs of services 1,971,293 2,107,665 6.9%
Slide 27: Jamaica and Mexico results
USD (millions): Mexico Jamaica 9M21 % over the total MXN (millions) Total Revenue (1) 37 73 110 20% 2,214 Total Expenses 5 43 48 29% 966 EBITDA 32 30 62 16% 1,248 27
Slide 28: Debt profile
Total MXP$25,370 83% Fix 79% MXP Average interest rate (millions) 17% Floating 21% USD 6.4% Amount Interest rate Spread Maturity Fix bond "GAP15-2" 1,500 7.08% n/a feb-25 Floating bond "GAP17" 1,500 SWAP 7.21% 0.49% mar-22 Floating bond "GAP17-2" 2,300 SWAP 8.03% 0.44% nov-22 Floating bond "GAP19" 3
Slide 29: Debt and liquidity
(Figures in MXP millions) *Exchange rate as of June 30, 2021, $19.8027 ** On October 15, 2021, we issued bond certificates in Mexico for a total value of 2.5 billion pesos, $1.5 billion though green bond certificates due in 2026, with an interest rate of TIIE 28+ 25 basis points; 29 and $1.0 billion
Slide 30: Credit ratings and covenants
Standard & Poor’s: mxAAA– National Scale Outlook: Stable Issued on September 2, 2021 Downward rating if: Net Debt to EBITDA ratio over 3x Moody’s: FFO/ Debt ratio below 23% Aaa.mx – National Scale Baa1 – Global Scale Outlook: Negative Issued on September 2, 2021 Covenants September 2021: Net Debt to
Slide 31: Distribution policy
➢ Pay all excess of cash above a minimum cash balance (two months of OPEX + the debt service) ➢ Dividend payment or capital reimbursement, considering the most efficient tax practice Payout Ratio 2020 103% 31 Dividend yield = payment per share divided by the share price at the end of the prior year.
Slide 32: Master Development Program 2020-2024
Master Development Program 2020-2024
Slide 33: Maximum tariff and Master Development Program
s $6,029 millions in CAPEX r 7.35% Tariff = Operating flow Maximum Tariff Master Development Program *Maximum tariff (MT) per traffic unit (WLU), WLU= 1 Passenger or 100 kg of cargo **Master Development Program, expressed in MXP millions 33 Figures expressed in constant pesos as of December 31, 2017
Slide 34: Total commitment investments
Total commitment investments of $15,802 millions *Figures expressed in millions and constant pesos as of December 31, 2017 The Capital Development program for our Jamaican airports is under review 34
Slide 35: Guadalajara airport expansion
➢ Infrastructure development to meet future demand and ensure a seamless connection process, includes: ▪ Second runway ▪ New aprons ▪ New terminal building (will start in this quinquennium and will continue in the next five year-period) ➢ Opportunity to transform Guadalajara Airport into a HUB, driv
Slide 36: Tijuana airport investments
➢ Building that will enable international passengers in transit to go through Tijuana Airport in a fast way without being processed by Mexican Authorities (+39,500 sqm) ➢ Possibility to develop international routes from/to Asia and Latin America ➢ Total investment in Tijuana of $2,980* millions ➢ Co
Slide 37: Los Cabos airport expansion
➢ New terminal building under the concept “Net-Zero” energy ➢ 8 additional aprons ➢ 15 additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Total investment of $3,026 millions* ➢ +42,000 sqm ➢ Construction will start in 2022 and conclude during 2024 *Figures expressed in consta
Slide 38: Puerto Vallarta airport expansion
➢ Expansion of international Terminal Building (+ 10,500 sqm) ➢ 28 additional aprons ➢ Two additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Total investment of $1,579 millions* ➢ Construction already commenced and will conclude during 2022 *Figures expressed in constant pes
Slide 39: Environmental, Social & Corporate Governance
Environmental, Social & Corporate Governance
Slide 40: Environmental initiatives
➢ 12 airports registered in the voluntary Environmental Audit program issued by the Federal Attorney for Environmental Protection (PROFEPA); 6 airports with maximum level of environmental performance ➢ 9 airports with the Airport Carbon Accreditation (ACA), a global program that assesses and recogni
Slide 41: Social initiatives
➢ GAP Foundation has the purpose of improving the social well-being of the communities close to GAP airports through educational initiatives: GAP Schools and Community Training Centers ➢ GAP Schools are schools at the primary and secondary level that provide excellent education and food at no cost,
Slide 42: Corporate governance
➢ GAP complies with the best national and international Corporate Governance practices to maximize value creation, optimize decision-making and promote a culture of compliance and accountability. ➢ The Board of Directors is responsible for the administration of the Company. The directors are elected
Slide 43: New Opportunities
New Opportunities
Slide 44: Investment drivers and potential opportunities
Investment Drivers Potential Opportunities Country Grantley Adams International Airport (Barbados) Pax: 2.1 million in 2019 Regulatory Framework Request for Qualification (“RFQ”) was presented Request for Proposal (“RFP”) hasn’t been published yet Passenger traffic Investment amount Return vs Risk 4
Slide 45: Investor relations contacts
Saúl Villarreal Corporate Headquarters Chief Financial Officer Av. Mariano Otero No. 1249-B 6th floor svillarreal@aeropuertosgap.com.mx Torre Pacífico, Rinconada del Bosque Guadalajara, Jalisco, México. Zip Code 44530 Alejandra Soto +(52) 33 3880 1100 IRO & Corporate Finance Director asoto@aeropuert
Slide 46: We are GAP
Grupo Aeroportuario del Pacífico — Q3 2021 Earnings Presentation on 6ix