Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (November 2019)
50 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, November 2019
Slide 1: Corporate Presentation November 2019
CORPORATE PRESENTATION NOVEMBER 2019
Slide 2: 13 Airports key figures
13 Airports 12.7 MXP Revenues1 14.7% increase vs 2017 332 Destinations 8.8 MXP EBITDA 14.1% increase vs 2017 35 69.5% EBITDA margin1 Airlines 5.1 MXP 44.9 Net income 8.6% increase vs 2017 Passengers 10.4% increase vs 2017 2.5 MXP 1,337 CAPEX Employees 1 Excluding IFRIC12 2
Slide 3: Passengers (thousands) by airport
1,139 1,744 345 7,835 4,483 926 5,249 869 2,339 4,767 14,352 173 Passengers (thousands) 730 * GAP began operations on October 10th, 2019 3
Slide 4: Ownership and share structure
Controladora Mexicana de Aeropuertos (CMA) AENA 66.7% 33.3% Aeropuertos Mexicanos del Pacífico Public Float 15% 85% 12 Mexican airports & Kingston airport MBJ Airports Limited 100.0% 74.5% ’ Series BB (AMP): 84,150,000 6 independent Series B (Public Float): 441,425,547 4 appointed by AMP Series B (R
Slide 5: Revenue and passenger mix by airport
16% Others 4% 77% 12% 58% Other 25% MXP Puerto 29% Domestic Vallarta Guadajalara VFR 45% Leisure 15% 26% 13% Los Cabos Business Tijuana 42% 23% 15% International USD Montego Bay 1 Excluding IFRIC12 5
Slide 6: Airport Groups Passengers
4.1% 14.5% 32.0% Airport Passengers Passenger Growth Groups 2018 (million) vs 2017 AICM 47.7 7.1% GAP 40.5 10.9% ASUR 33.2 7.1% 22.3% OMA 21.6 10.7% ASA/Others 6.1 8.6% TOTAL 149.1 8.7% 27.1% Source: GAP, AICM, OMA, DGAC * ASUR Airports do not include general aviation passengers 6
Slide 7: 5 of top 10 airports in Mexico operated by GAP
47.7M 7.1% 5 of top 10 Airports in Mexico are operated by GAP 25.2M 6.8% 14.4M 12.1% 10.7M 9.8% 7.8M 10.3% 5.2M 4.8M 2.5M 2.3M 2.3M 6.9% 5.4% 14.1% 19.6% 18.9% Mexico City Cancún Guadalajara Monterrey Tijuana Los Cabos Puerto Vallarta Merida Guanajuato Culiacán Source: GAP, AICM, OMA, DGAC. *Cancun
Slide 8: Passengers by airport
Airport Passengers Growth vs 2017 Guadalajara 14,351,563 12.10% Tijuana 7,835,064 10.30% Los Cabos 5,249,039 6.90% Puerto Vallarta 4,767,060 5.40% Montego Bay 4,482,460 6.10% Guanajuato 2,338,752 19.60% Hermosillo 1,743,754 7.10% Mexicali 1,138,467 41.60% La Paz 926,334 9.20% Aguascalientes 868,505
Slide 9: Passengers by airline
Load Factor Load Factor Airline Pax 2017 Pax 2018 Change % 2017 2018 Volaris 13,662,722 15,828,200 2,165,478 15.8% 83.6% 83.5% Aeromexico 6,008,640 6,196,011 187,371 3.1% 80.1% 79.9% VivaAerobus 3,436,425 4,471,068 1,034,643 30.1% 86.8% 84.5% Interjet 3,876,516 4,456,110 579,594 15.0% 75.5% 76.6% Am
Slide 10: Airports 9M19 traffic
Growth Airports 9M19 vs 9M18 18 vs 17 17 vs 16 16 vs 15 15 vs 14 Guadalajara 11,000.3 3.3% 12.1% 12.4% 16.4% 12.1% Tijuana 6,587.2 14.0% 10.3% 12.2% 30.0% 11.0% ~ 81.2% Los Cabos 4,212.4 6.2% 6.9% 15.6% 16.3% 11.2% Puerto Vallarta 3,789.4 5.2% 5.4% 11.3% 13.1% 14.9% Montego Bay 3,622.1 6.4% 6.1% 8.3
Slide 11: Airport Industry
AIRPOR Thdustry 11
Slide 12: Airbus Global Market Forecast growth
2.1% 3.6% 2.0% 2.0% 4.5% 4.8% 7.0% 3.1% Source: Airbus Global Market forecast * Sub-Saharan Africa does not include South Africa 5.9% 12
Slide 13: Mexican airports seats and passengers
The average load factor for the Mexican airports has been 79.0% since 1999, while in 2018 it was 81.8% 55.0 52 AVERAGE GDP 50.0 GROWTH PAX CAGR 45.0 99-19E: 2.1% 1999-2019E: 5.1% 40.0 44 40 millions 35.0 36 30.0 33 25.0 28 Seats 25 24 23 Passengers 20.0 22 21 21 20 20 19 19 15.0 18 16 16 16 16 15 10
Slide 14: Main Expectations for 2019
Main Expectations for 2019 57 million seats (2.5 million additional seats vs. 2018) ~ 8% passenger traffic growth 83% load factor (2 basis points increase vs 2018) +350 total routes Growing Mexican airline fleet 140 130 127 118 120 105 100 86 90 77 80 80 60 44 44 40 31 35 21 22 20 15 7 0 Aeromexico
Slide 15: New routes and airlines
Route Airline Route Airline Guadalajara - Acapulco Volaris Aguascalientes - Chicago Volaris Guadalajara - Chetumal Volaris Guadalajara - Charlotte American Guadalajara - Los Mochis TAR Guadalajara- San Salvador Volaris Guadalajara- Durango Volaris Los Cabos - Las Vegas Sun Country Guadalajara- Queré
Slide 16: New Mexico City airport cancellation, an opportunity for GDL
❑ New Mexico City airport cancellation, an opportunity for GDL ❑ Impressive infrastructure development to meet future demand and ensure a seamless connection process: ▪ Second runway ▪ New aprons ▪ New terminal building, road access and parking ❑ Outstanding domestic and international connectivity ▪
Slide 17: CBX cross-border terminal passengers
2.2 million Passengers used CBX during 2018 28.9% TIJ PAX using CBX during 2018 17.6% more passengers Used CBX than in 2017 CBX benefits travelers from several regions, since this airport has more than 30 domestic connections to Mexican cities not covered Tijuana's seats offer to beach destinations*
Slide 18: International traffic booster
INTERNATIONAL TRAFFIC BOOSTER ❑ Building will enable migrants in transit to travel without being processed by Mexican Authorities ❑ Opens possibilities to exploit potential international routes, mainly from the US ❑ Facilitates the transit of passengers heading to Mexico and international destinatio
Slide 19: Los Cabos, Puerto Vallarta and tourism destinations
6 0 t h o u s a n d total available hotel rooms amongst the three destinations, with the expectation to open additional 8 thousand additional rooms in the short-mid term. 8 4 % average load factor for the three airports, the highest in the Group. + 1 5 0 routes to destinations in 1 3 c o u n t r i e
Slide 20: Commercial Revenues
COMMERCIAL rEeVvenueés 20
Slide 21: Commercial revenues growth 2010-2019E
16% growth in 2018 E > 3,550 2010-2019E Direct Operation 560 Third Parties 2,983 19.1% CAGR MBJ 519 2,573 2,246 474 2,000 436 1,783 333 1,676 1,448 1,184 1,185 1,076 936 920 738 784 758 706 636 574 553 990 788 530 625 650 369 426 231 300 164 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 MXP mill
Slide 22: Commercial revenues by airport and category
(MXP (MXP 0% OTHERS 354 760 655 CAR PARKING 277 43 16% 613 578 CAR RENTAL 235 75 32% 519 474 DUTY FREE 398 71 18% 374 305 369 342 F&B 276 61 284 281 22% VIP LOUNGES 192 71 37% RETAIL 271 27 10% TIME SHARE 187 10 GDL SJD MBJ PVR TIJ OTHERS 5% ADVERTISING 169 25 2017 2018 15% OUT OF TERMINAL 162 29 18
Slide 23: Commercial revenue per pax and 2019E
(USD) (MXP) (MXP millions) +19% 3,550 68.6 560 2,982 6.1 519 +13% +2% 60.9 2,463 2, 990 6.0 2018 2019 E 2018 2019 E 2018 2019 E MBJ MEXICO 23
Slide 24: Commercial revenue and new image
COMMERCIAL REVENUE 1st $3,550 units and new image 2nd 22.0% commercial square meters CAGR 2015-2019E 3rd commercial layouts 24
Slide 25: Commercial square meters by airport
AIRPORT SQM Guadalajara 10,119 Los Cabos 5,116 Puerto Vallarta 4,604 Tijuana 3,467 Hermosillo 1,107 Guanajuato 968 Mexicali 382 La Paz 347 Aguascalientes 339 Los Mochis 190 Morelia 150 Manzanillo 46 Total 26,833* *F&B, Retail, Car Rental and Duty Free 25
Slide 26: Airport Infrastructure
AIRPORT INFRASTRUCTURE 26
Slide 27: CAPEX for 2019
(MXP ) 2,178 1,150* Others 1,656 Environmental 7% 1,527 4% 1,159 Equipment 10% 450 2015 2016 2017 2018 2019E Terminal Buildings Apron and airfield 25% 53% * Investments to be made in advance related to the MDP 2020-2024 amount to MXP 800 million. Investments related to commercial activities amount t
Slide 28: Terminal expansion project
640 MXP Million o THIRD PHASE completed in June 2019 o EXTENSION of 3,300 sqm and remodeling of additional 3,200 sqm o 5 REMOTE boarding gates o NEW FOOD COURT with an extension of 1,300 sqm 28
Slide 29: Terminal expansion project
850 MXP Million o EXPANSION of 8,500 sqm, and remodeling of 17,300 sqm o NEW CHECK-IN AREA with 12 additional counters o 5 NEW BAGGAGE CLAIM BELTS with extended capacity, in substitution of the old ones o NEW SECURITY CHECK POINT with two lanes for CBX passengers o ADDITIONAL and improved space for
Slide 30: Terminal expansion project
640 MXP Million o NEW BOARDING LOUNGE with 6,500 sqm and 10 remote boarding gates o THREE NEW AIR BRIDGES o 25% EXPANSION of immigration point: 2,300 sqm vs the current 1,800; 20 new automatic immigration kiosks o 1 NEW BAGGAGE CLAIMS BELT o ADDITIONAL and improved commercial areas o CONSTRUCTION co
Slide 31: Terminal expansion project
48 MXP Million o 30% INCREASE in boarding lounge with 2 additional boarding gates o EXPANDED and completely refurbished security check point: o 1 ADDITIONAL lane o 270 sqm additional o INCREASE in commercial offer from existing 25 sqm to new 192 sqm (+680%) o CONSTRUCTION commencement date: July 201
Slide 32: Terminal expansion project
55 MXP Million o EXTENSION of 1,100 sqm and renovation of 800 sqm o 70% INCREASE in boarding lounge capacity: 1,200 sqm vs the current 700 sqm o 2 NEW BOARDING GATES. 6 compared with the existing 4 o SECURITY check point extension and refurbishment o 35% INCREASE in baggage claims area o NEW VIP LOU
Slide 33: Tariff Review
TARIFF reEVIEW
Slide 34: Maximum tariff formula
[ (RV - TV + CAPEX + OPEX ) * (1 + DR) ] MT = WLU's MT - Maximum Tariff RV – Reference Value TV - Terminal Value DR - Discount Rate WLU - Work Load Units 34
Slide 35: Tariff review assumptions and capex
9% Projects and 15% supervision Airfield 7% Land purchases Traffic roughly 4%-5% growth 6% 15% Pavements Equipment Maintenance renotavion CAPEX around $20 billion MXP* 6% Infrastructure Improvements 1% Discount Rate approximately 13% Environmental Normativity Outcome expected 4Q19 1% OACI Normativit
Slide 36: Financial Highlights
FINANCIAL HIGHLIGHTS 36
Slide 37: Revenues and EBITDA 2008-2018
14 5,264 14 2,243 1 *15 7,556 *15 2,873 *1 16 9,431 16 3,354 1 17 11,053 17 4,731 1 18 18 1 12,683 5,139 08 3,490 0808 1,541 64% 08 541 08 2,238 3,490 08 085.8% 1,541 0 09 3,266 0909 1,199 092,134 3,266 65% 09 09 542 4.5% 09 1,199 0 10 3,716 1010 1,500 10 2,441 3,716 66% 10 10 935 105.6% 1,500 1 11
Slide 38: Revenues, EBITDA and margins
*15 7,556 *15 2,873 *15 1,126 16 9,431 16 3,354 16 1,875 17 11,053 17 4,731 17 1,939 18 18 18 12,683 5,139 2,501 08 08 541 2,238 08 5.8% 08 5.5% 09 09 542 2,134 09 4.5% 09 4.2% 10 10 2,441 935 10 5.6% 10 5.2% 11 11 2,597 1,287 11 6.8% 11 6.0% 12 12 2,939 983 12 8.3% 12 7.2% 13 13 681 3,556 13 10.1%
Slide 39: 9M19 income statement
9M18 9M19 % Change Revenues Aeronautical services 7,036,147 7,776,615 10.5% Non-aeronautical services 2,332,365 2,808,953 20.4% Sum of aeronautical and non-aeronautical services 9,368,512 10,585,568 13.0% Improvements to concession assets (IFRIC 12) 1,014,446 1,066,398 5.1% Total revenues 10,382,958
Slide 40: Trend per pax
TREND per Pax AERO REVENUE PER PAX (MXP) 211 217 __& 193. 208 14g 152 158 156 159 fill | 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E EBITDA PER PAX (MXP) 202 190 196 172 180 149 tio 221 129 138 141 T| | | | | 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E NON
Slide 41: Mexico and Jamaica 9M19 results
(millions of USD): Mexico Jamaica 9M19 % in USD Pesos Total Revenue (1) 40 89 129 21% 2,481 Total Expenses 29 46 76 37% 1,455 EBITDA 11 42 53 14% 1,026 (1) Excluding the effects of IFRIC12 41
Slide 42: Debt profile and ratings
Standard & Poor’s Floating Fixed Floating Fixed 76% 24% 49% 51% mxAAA Debt Debt / National scale Issued in March 2019 $13,535 $16,728 Moody’s Aaa.mx / National scale A3 / Global scale Issued in March 2019 MXP USD 66% USD MXP Debt 34% 72% 28% Debt $13,535 $16,728 Figures in MXP millions 0.8x Net debt
Slide 43: Debt instruments and maturities
Amount Currency Ints Rate Spread Amortization Maturity (millions) Floating bond “GAP15” MXP $2,200 TIIE 28 0.24% Bullet Feb-2020 Floating bond “GAP16” MXP $1,500 TIIE 28 0.49% Bullet Jul-2021 SWAP fix “GAP17” MXP $1,500 7.70% n/a Bullet Mar-2022 Floating bond “GAP17-2” MXP $2,300 TIIE 28 0.44% Bulle
Slide 44: Financial policy
Maintain healthy financial levels Net debt to EBITDA: below 2.5x Potential expansions leveraged Capital Structure: 50 / 50 Leveraging CAPEX WACC: below 8.0% Compliant debt covenants Interest coverage: above 5x Sustain debt ratings FFO/debt ratio above 40% Improving WACC Distribution Policy: consiste
Slide 45: Distribution policy and dividend yield
- Pay all excess of cash above a minimum cash balance (two months of OPEX + the debt service) - Dividend payment 9.0% or capital reimbursement, will take into account the most efficient tax7,000 practice 6,018 ** 8.0% 6,000 7.9% 7.5% 5,256 7.2% 7.0% 6.8% 4,756 5,000 Payout ratio 2018 6.0% 3,889 4,00
Slide 46: Investments Overseas
Investments OVEr seas 46
Slide 47: Kingston airport concession
1.6 million passengers during 2018, growing 2% vs 2017. USD 7.1 million Upfront Fee The passenger profile is comprised mainly of 62% VFR and business. Concession Fee 25 years + 5 On October 10th, 2018, we signed the Concession Period Concession Agreement to modernize and expand the Kingston airport.
Slide 48: Guatemala La Aurora airport opportunity
Country 2019: - La Aurora International Airport (Guatemala) Regulatory Framework - Pax: 2.8 million - Request for Proposal (“RFP”) hasn’t been published yet Passenger traffic Investment amount Return vs Risk 48
Slide 49: 2019 guidance
Traffic 8% +/- 1% Aeronautical Revenue 12% +/- 1% Non-aeronautical Revenue 20% +/- 1% Total Revenue 14% +/- 1% EBITDA 12% +/- 1% EBITDA margin 68% +/- 1% CAPEX MXP 1.9 billion Figures include consolidation of Kinston airport since 4Q19 49
Slide 50: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Gisela Murillo Herrera Investor Relations gmurillo@aeropuertosgap.com.mx +(52) 33 3880 1100 ext. 20294 Alejandra Soto Ayech IR & Financial Planning asoto@aeropuertosgap.com.mx Saúl Villarreal García Chief Financial Officer svillarreal@aeropuertosgap.com.mx CORPORATE HEADQ
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