Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q3 2019 Earnings Presentation
39 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, November 2019
Slide 1: Third Quarter 2019 Results
THIRD QUARTER 2019 RESULTS Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.
Slide 2: Forward-looking information and statements
This presentation 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 ma
Slide 3: About the Company
ABOUT T HE COM P AN Y Our Businesses Who we are Listed in BMV and NASDAQ since 2006 13 Airports in the central-north More than 900 employees region of Mexico, serving 23 million committed to providing Part of the main index of the BMV passengers in LTM November 2019. aeronautical, commercial and rea
Slide 4: Company Overview, Aeronautical, Non-Aeronautical, Financial Results
Company Overview Value Proposition | Historical Performance | Shareholder Structure | Board of Directors and Management Team | Operations & Sustainability Aeronautical Business Connectivity & New Routes | Passenger Traffic | Airline Participation | Aeronautical Revenue 3Q19 Non-Aeronautical Business
Slide 5: Company Overview
Company Overview Value Proposition Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability 5
Slide 6: Value Proposition
Company Overview Value Proposition Cost and Constant growth Healthy balance Maximizing value Experienced expenses in Adjusted sheet distribution board of directors efficiency EBITDA and and management margins team High potential Sustained Visibility in Successful Commitment to portfolio of passenger
Slide 7: Historical Performance
Company Overview Historical Performance Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) Sustained CAGR 2012-LTM Sep19 PAX Revenues¹ 8.8% 14.8% 22.7 positive trends 21.6 Adjusted EBITDA 20.0% 22.0 8,000 19.7 7,399 18.8 20.0 6,766 through 16.9 24% 18.0 5,803 6,000 5,205 24%
Slide 8: Shareholder Structure
1.9% 12.6% CONOISA 1 B Shares SETA¹ BB Shares Company Overview Shareholder 85.5% Public Float 2 B Shares Structure Market Capitalization 3 Ps. Bn. $46.1 / USD Bn. $2.3 Note: As of September 30, 2019 ¹ Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Operaciones de Infra
Slide 9: Board of Directors & Management
Experienced Management Team (Average time with OMA: 6 years) Ricardo Dueñas *2018 Chief Executive Officer Company Overview Board of Ruffo Pérez Pliego *2018 Chief Financial Officer Adriana Díaz *2018 General Counsel Directors & Héctor Cortés *2001 Chief Commercial Officer Management Enrique Navarro
Slide 10: Operations & Sustainability
Aerodrome & Safety Certifications Quality and Customer Service Social Responsibility Company Overview Operations & Sustainability Sustainability Performance 10
Slide 11: Aeronautical Business
Aeronautical Business Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenue 3Q19 11
Slide 12: Connectivity & New Routes 11M19
New Domestic Routes New International Routes Top Routes* 14 3 2 1 MTY – MEX (+3%) 01 MTY – CUN (+9%) 02 MTY – GDL (-1%) 03 7 3 1 4 OTROS CUL – TIJ (+12%) *Based on number of seats offered during 11M19 CUU – MEX (+13%) 04 05 +35 +7% Seats +7.4% Total New Terminal Routes added Passengers Aeronautical
Slide 13: Passenger Traffic
Aeronautical Business 3Q19 Passenger TOTAL PAX: 6.1 MILLION (+6.9%) 89% Domestic: 5.5 million (+6.4%) 11% International: 0.7 million (+11.2%) Traffic 11M19 TOTAL PAX: 21.1 MILLION (+7.4%) 88% Domestic: 18.7 million (+7.3%) 12% International: 2.5 million (+7.6%) PASSENGER SHARE 3Q19 PASSENGER GROWTH
Slide 14: Airline Participation
Total 88% 12% Aeronautical Business Airline Participation PAX Domestic Passengers International Passengers Note: Percentages in graphs represent 1) Passenger share by category and 2) % change LTM Nov19 vs LTM Nov18 Ameri can Ma gni charter Ai rl ines 2% 2% (+6.6%) Other (+4.7%) Other 11% 4% (+0.3%)
Slide 15: Aeronautical Revenues 3Q19
Aeronautical Business Aeronautical Ps.1,491mm +10% Revenues 3Q19 76% of Total Revenue* Ps. 242.7 / PAX * Total Revenues excluding Construction Revenues Domestic Passenger Charges International Passenger Charges Airport Services Ps.1,004mm Ps.294mm Ps.194mm +9.1% +13.7% +9.6% 67% of 20% of 13% of Aer
Slide 16: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Non-Aeronautical Revenues 3Q19 Historical NAR Growth 16
Slide 17: Commercial Strategy
Non-Aeronautical Business Commercial Strategy 21COMMERCIAL INITIATIVES IMPLEMENTED IN 3Q19 CUL, CUU, MTY, MZT, TAM & TRC Restaurant 8 CUU, SLP, TAM, TRC & ZIH Bank services 5 MZT & SLP Hotel Promotion 2 MTY & ZCL Car rental 2 TAM Retail 2 MTY Passenger services 1 MTY Comunications 1 Increase of Opti
Slide 18: Diversification Strategy
T2 NH Collection Hilton Garden Inn Non-Aeronautical Business Diversification Strategy 13.4% of NAR | 287 Rooms Avg. Room Rate: Ps.2,219 per night 5.8% of NAR | 134 Rooms Avg. Room Rate: Ps.2,282 per night Occupancy Rate: 84.6% Occupancy Rate: 77.5% EBITDA Margin 43.8% EBITDA Margin 43.0% OMA Carga M
Slide 19: Non-Aeronautical Revenues 3Q19
Non-Aeronautical Business Non- Ps.465mm Aeronautical +11.2% Revenues 3Q19 24% of Total Rev.* Ps. 75.7 / PAX * Total Revenues excluding Construction Revenues Commercial Activities Diversification Activities Complementary Activities Ps.237mm Ps.154mm Ps.74mm +12.3% +9.7% +10.9% 51% of 33% of 16% of No
Slide 20: Historical Non-Aeronautical Revenue Growth
Non-Aeronautical Business Historical Non-Aeronautical Revenue Growth NAR – Commercial/PAX NAR – Diversification/PAX NAR – Complementary/PAX NAR PAX 1 CAGR 2012 - LTM Sep19 2 ,0 00 • PAX ¹ +8.8% 78 • NAR 1, 80 0 +14.5% 4 40 • NAR/PAX +5.2% 75 1, 60 0 16% 74 16% 39 0 1,40 0 71 16% 34 0 1,20 0 66 16% 3
Slide 21: Financial Results
Financial Results Highlights 3Q19 Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 21
Slide 22: Highlights 3Q19
Financial Results Highlights Consolidated Net Income 3Q19 Ps. 858mm +18.2% Ps. 139.6 / PAX (+10.6%) * Total Revenues excluding Construction Revenues ** Adjusted EBITDA Margin = Adjusted EBITDA / (Aeronautical + Non-Aeronautical Revenues). Adjusted EBITDA = Operating income + Depreciation and Amortiz
Slide 23: Cost & Efficiency
Financial Results Cost & T e x Efficiency t o Cost and expense control has contributed to EBITDA growth Cost Control Strategy Adj. EBITDA / PAX AR+NAR / PAX Total Op. Costs and Exp./ PAX 1 CAGR • Seek operational leverage 2012 - LTM Sep19 • Energy consumption 10.2% • Development of a culture of savi
Slide 24: Balance Sheet
Financial Results Balance Sheet Strong Financial Position* Low Leverage Ps.Million Net Debt / Adjusted EBITDA 1.0 0.9 0.8 4,555 3,121 0.5 0.5 0.3 0.3 1,434 Total Debt Cash Net Debt 2013 2014 2015 2016 2017 2018 LTM Sep19 Debt Profile* Capital Structure Evolution Total Debt | Shareholders’ Equity (Bo
Slide 25: Profitability: ROA, ROE and Earnings Per Share
Return On Assets (ROA) / Return On Equity (ROE) 45.0 CAGR 2012 - LTM Sep19 38.6 • ROA +14.5% 40.0 • ROE +17.1% 35.0 33.6 • EPS +22.2% 29.6 30.0 28.1 25.0 20.8 21.1 20.0 18.8 18.4 16.8 13.9 15.1 15 .0 12.8 10.9 9.9 10 .0 8.2 8.3 5.0 - 2012 2013 2014 2015 2016 2017 2018 LTM Sep19 Financial Results Ear
Slide 26: Value Distribution
Financial Results Value Distribution 1,600 1,600 1,600 1,600 Dividend or 1,400 Capital Reimbursement 1,200 1,200 (million pesos)* 8.6 Dividend Yield** and Payout Ratio 9.0 Percentage Percentage 225 8.0 6.9 7.0 17 5 6.0 4.4 4.5 5.0 4.2 3.9 3.9 12 5 4.0 3.0 75 147 2.0 117 113 100 85 75 1 .0 56 25 - 20
Slide 27: MDP & Maximum Rates
MDP & Maximum Rates Investments 2016-2020 New Terminals Maximum Rates 27
Slide 28: Investments 2016-2020
Visibility of capital expenditure Monterrey, 28% requirements through 2020 Total Committed Investment Ps.6,002mm pesos of Dec. 31, 2018 2,50 100% Committed Actual / Expected 90 % MDP & Maximum Rates 2,00 80 % 1,750 Investments 1,678 1,645 1,575 70 % 1,276 1,284 1, 5 00 60 % 50 % 1,000 2016-2020 784
Slide 29: Investments 2016-2020: Most Important Projects
MDP & Maximum Rates Total Committed Investment Investments Ps.6,002mm 2016-2020 pesos of Dec. 31, 2018 Most Important Projects Other 6% Terminal Expansion • Chihuahua • Monterrey Operational • San Luis Potosí Infrastructre • Ciudad Juárez • Tampico Expansion Terminal 11% Expansion & Refurbishing New
Slide 30: Terminal Expansions: Terminal A and C - Monterrey Airport
MDP & Maximum Rates Terminal Expansions: Terminal A and C - Monterrey Airport CAPACITY CAPACITY (million passengers) (million passengers) Investment* TOTAL AREA TOTAL AREA Ps. 1,115 mm Terminal A: 5.3 Terminal A: 5.3 62,268 m2 69,757 m2 Terminal B: 3.2 Terminal B: 3.2 Terminal C: 3.3 Terminal C: 4.6
Slide 31: New Terminals: Reynosa
MDP & Maximum Rates New Terminals INVESTMENT TOTAL AREA Ps. 325 mm 2,608 m2 7,590 m2* REYNOSA Terminal building, m2 +191% | Commercial spaces, m2 +187% AIRPORT CAPACITY START OF OPERATIONS 0.3mm PAX 0.9mm PAX | +200% January 2020** * New terminal net surface ** Expected 31
Slide 32: Terminal Expansions: Tampico
MDP & Maximum Rates Terminal Expansions INVESTMENT TOTAL AREA Ps. 175 mm 6,833 m2 7,981 m2* TAMPICO Terminal building, m2 +17% | Commercial spaces, m2 +25% AIRPORT CAPACITY START OF OPERATIONS 0.8mm PAX 1.1mm PAX +38% Fourth Quarter of 2020** * New terminal net surface ** Expected 32
Slide 33: Terminal Expansions: Chihuahua
MDP & Maximum Rates Terminal Expansions CHIHUAHUA INVESTMENT TOTAL AREA Ps. 318 mm 7,951 m2 12,896 m2* Terminal building, m2 +62% | Commercial spaces, m2 +80% AIRPORT CAPACITY START OF OPERATIONS 0.9mm PAX 1.6mm PAX +78% Inaugurated in September 2019 33 * New terminal net surface
Slide 34: New Terminals: San Luis Potosí
MDP & Maximum Rates New Terminals TOTAL AREA SAN LUIS POTOSÍ Ps. 400 mm INVESTMENT 3,832 m2 11.042 m2* Terminal building, m2 +188% | Commercial spaces, m2 +196% AIRPORT CAPACITY START OF OPERATIONS 0.5mm PAX 1.4mm PAX | +180% Inaugurated in August 2019 34 * New terminal net surface
Slide 35: Visibility on Aeronautical Revenues
MDP & Maximum Rates Visibility on Maximum Aeronautical Rates Revenues Through 2020 MT Recovery Maximum Tariffs 2019 (2) 97.8% 94.5% 93.7% MAXIMUM MINIMUM WEIGHT, AVG (1) Ps. $305 Ps. $197 Ps. $243 2016 2017 2018 ACA SLP 13 AIRPORTS The maximum rate for each succeeding year through 2020 will be adjus
Slide 36: Outlook and Industry
Outlook and Industry Industry Trends Airline Fleets 36
Slide 37: Industry Trends
Outlook and Industry Industry Trends 2.5 2.6 4.8% 4.5% 4.6% 3.4% 2.4% 1.0 2.0% 0.4 0.5 0.5 Flights per capita per year % Passenger Traffic CAGR Argentina Mexico Brazil Chile Canada United States United States Canada Russia Mexico Central South America America Air Industry Projected has Low Penetrati
Slide 38: Historical Airline Fleets and Available Seats
Historical Airline Outlook and Industry Airline Fleets and Fleets Available Seats Airplanes 133 131 130 2015 2016 2017 2018 3Q19 125 121 84 84 80 78 77 70 69 71 57 56 31 36 21 21 24 14 10 11 11 8 Available Seats* 6.7 0.7 18.0 11.9 11.9 17.8 10.7 13.8 14.4 5.8 0.6 0.6 16.7 16.7 8.7 12.2 12.5 0.5 7.9
Slide 39: Investor Relations Contacts
Chief Financial Officer Ruffo Pérez Pliego del Castillo rperezpliego@oma.aero +52.81.8625.4300 GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V. Investor Relations Luis Emmanuel Camacho Thierry ecamacho@oma.aero +52.81.8625.4308 39
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