Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (November 2017)
53 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, November 2017
Slide 1: On the Right Track – Corporate Presentation Nov 2017
On the Right Track Corporate Presentation Nov 2017
Slide 2: About GAP
About GAP Shareholder Structure AENA Controladora Mexicana de 33.3% Aeropuertos (CMA) 66.7% Public Float 85% Aeropuertos Mexicanos del Pacífico (“AMP”) 15% Desarrollo de Concesiones Aeroportuarias 100% In 2016, GAP served one-fourth of Mexico´s terminal passengers and almost three – fourths of MBJ A
Slide 3: Shareholder Structure
Shareholder Structure AMP (Strategic Partner) AENA 33.3% No Voting Power CMA Cannot be represented in any 66.7% shareholders meeting Treasury 35,424,453 6.3% GMexico: Total Shares: 561,000,000 Excess of shares 21,617,785 AMP BB Series BB (AMP): 84,150,000 3.9% 84,150,000 Series B (Free Float): 476,8
Slide 4: Strategic Outlook
Strategic Outlook —— Sep eome i R egeeetae eae EN THAT
Slide 5: Mexican Airport Industry
Mexican Airport Industry Traffic Overview Mexico City Airport • Air traffic grew 10.9% during 2016, for a total of 126.0 million • First phase of the new Mexico City airport is expected to be passengers while GAP grew 18% in 2016. completed at the end of 2020; representing an opportunity for other a
Slide 6: Transition from Ground to Air Travel Continues
Transition from Ground to Air Travel Continues • The total number of air passengers per capita has risen in recent years in Mexico, from 0.22x in 2011 to 0.42x in 2016, and this trend is expected to continue throughout this decade (Source: Santander and Volaris). It is important to highlight that ai
Slide 7: The Jamaican Market
The Jamaican Market Total Jamaica traffic during 2016 was 5.5 million passengers Montego Bay (Sangster International Airport) Kingston International Airport • Montego Bay transported 3.9 million passengers • Kingston transported 1.6 million passengers during 2016. during 2016. • Currently, there is
Slide 8: I – Airport Industry in 2016
I – Airport Industry in 2016
Slide 9: Largest Private Mexican Airport Operator
Largest Private Mexican Airport Operator 1.7% increase in Mexico’s market share during 2016 4% Mexican Airport Total 15% ASA / Others Groups Passengers OMA 2016 33% AICM 41,407,523 AICM GAP 32,191,017 ASUR 28,407,051 23% OMA 18,763,638 ASUR Others 5,253,872 Total Mexico 126,023,101 26% Source: SCT D
Slide 10: GAP Operates 5 of the 10 Most Important Airports
GAP Operates 5 of the 10 Most Important Airports Passenger Traffic in Mexico 50.0 in 2016 45.0 41.4 These 5 airports 40.0 represented 22% of the 35.0 total passenger traffic of all Mexican airports 30.0 GAP Airports Millions 25.0 21.4 Other Airport Groups 20.0 15.0 11.4 9.2 10.0 6.3 4.1 4.0 5.0 1.9
Slide 11: GAP's Key to Success: Diversification
GAP’s Key to Success: Diversification % Passenger Share 2016 % Growth Share 2016 AGU MLM LMM ZLO AGU MLM LMM ZLO MXL 1% 1% 1% 0% MXL 1% 1% 1% 3% 2% LAP LAP 2% 3% 2% HMO HMO 4% BJX 4% BJX GDL 4% GDL 5% 31% MBJ 31% 3% MBJ 11% PVR 9% PVR SJD 11% TIJ 12% SJD 17% TIJ 12% 28% Page 11
Slide 12: Diversified Airport Portfolio in 2016
Diversified Airport Portfolio in 2016 Diversified portfolio of airports by Total Revenue by Airport* passenger traffic Others Mid-sized Puerto 15% Guadalajara cities Vallarta 28% 15% 12% Metropolitan Tijuana Montego Tourist areas Bay 13% destinations 49% Los Cabos 17% 36% 15% * Excluding IFRIC 12 Ty
Slide 13: Main Airlines by Passengers Transported 2016
Main Airlines by Passengers Transported 2016 Total seat growth 6.5 million or 16.6% Total Passenger Share 2016 Additional GAP CONSOLIDATED Airline Seats vs % Seat Growth vs 2015 2015 Volaris 2,455,030 19.9% Westjet 2% Volaris VivaAerobus 1,135,838 53.9% Southwes 32% Aeromexico 550,722 7.5% t 3% Inte
Slide 14: Main Drivers for 2017
Main Drivers for 2017 • Mexican airlines continue expanding fleets and opening new routes. • Remittances from the U.S. continue rising, reaching over US$ 25 billion during 2016, boosting purchasing power. • A growing middle-class means more demand for business and leisure flights. • Bilateral agreem
Slide 15: What to Expect for GAP's Airports
What to Expect for GAP´s Airports 49.9 million total seats in 2017 Offered through GAP’s Airport Network Total Load Factor: 81% METROPOLITAN AREAS Tijuana: CAGR 2011-2017E: 13.4% Guadalajara: CAGR 2011-2017E: 9.7% • Expected to remain one the best performing airport in terms of • Expected to have be
Slide 16: What to Expect at GAP's Airports
What to Expect at GAP´s Airports 67% of the international traffic is driven by GAP’s tourist destinations Los Cabos and Puerto Vallarta: CAGR 2011-2017E: 9.2% Montego Bay: CAGR 2011-2017E: 4.5% • 4,500 + 3,000 additional hotel rooms, respectively, will be • Over 1,000 rooms to be added to the hotel
Slide 17: What to Expect for GAP's Airports
What to Expect for GAP´s Airports Bajio Region: CAGR 2011-2017: 14.3% • Best performing pair of airports (Aguascalientes • Growing leisure and VFR (visiting friends and and Guanajuato) in GAP during the past 6 years as a relatives) market. result of the region’s industrial growth. • Aggressive low-c
Slide 18: Constant Evolution of the Aviation Industry
Constant Evolution of the Aviation Industry Total Seats Offered at GAP / Airline Type 60,000,000 50,000,000 40,000,000 59% 30,000,000 52% 38% 20,000,000 37% 61% 44% 10,000,000 - 2010 2011 2012 2013 2014 2015 2016 2017 Full Service Low-Cost Regional & Charter Low-cost carriers have gained a significa
Slide 19: Mexican Airlines Fleet Strategy
Mexican Airlines Fleet Strategy Number of Aircraft – All Mexico Bullish Number of Aircraft 133 129 105 118 Capacity Growth 73 76 69 70 44 44 VOI + AIJ + VIV to add over 3.0 million 23 seats in GAP full 21 22 21 15 7 year Grupo Aeroméxico Volaris Interjet VivaAerobus 2009 2013 2016 2017 Seat Growth a
Slide 20: Record Passengers in GAP Mexico
Record Passengers in GAP Mexico From 99 – 2017E the average load factor for our Mexican airports: 77% 50.00 CAGR 2012 - 2017E: 11.3% 45.00 45 40.00 CAGR 99 – 2017E: 4.6% 35.00 36 30.00 33 Millions 25.00 28 25 24 23 20.00 22 21 21 19 20 20 19 Passengers 15.00 18 16 16 16 16 Seats 15 10.00 Page 20
Slide 21: MBJ General Overview
MBJ General Overview • 90% of Jamaica´s room capacity is within MBJ´s natural catchment area. Passenger Traffic 4.5 • Tourism sector confidence is reflected in additional CAGR 12 – 2017E: 5.1% 4.21 hotel capacity investments. 3.90 4.0 3.74 3.58 Millions 3.5 3.42 3.28 3.0 2.5 Currently in Other, bidd
Slide 22: Traffic Evolution 10M17
Traffic Evolution 10M17 Expected growth at the end of 2017= 11% Airports 2016 16 vs 15 10M17 vs 10M16 Guadalajara 11,395,765 16.4% 10,488,454 12.7% Tijuana 6,332,451 30.0% 5,836,117 14.3% Los Cabos 4,247,971 16.3% 4,048,134 16.5% Puerto Vallarta 4,063,306 13.1% 3,665,853 11.5% Montego Bay 3,901,630
Slide 23: Traffic Evolution by Airline 10M17 vs 16
Traffic Evolution by Airline 10M17 vs 16 Load Factor Load Factor Airline Pax 2016 Pax 2017 Change % 2016 2017 Volaris 9,788,694 11,197,343 1,408,649 14.4% 81.2% 82.6% Aeromexico 4,899,005 4,984,876 85,871 1.8% 75.2% 78.4% Interjet 2,735,543 3,142,847 407,304 14.9% 74.7% 74.8% VivaAerobus 2,072,924 2
Slide 24: II – Revenue Development
II – Revenue Development
Slide 25: Total Revenues
Total Revenues Aero + Non Aero (MXP Millions) CAGR 06 – 17E:12.4% 11,040 9,432 7,556 5,264 4,787 4,374 3,903 3,717 3,491 3,477 3,266 3,046 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017E *2015 Figures consolidate information for MBJ as if the acquisition had taken place January 1, 2015
Slide 26: Revenue Mix
Revenue Mix 100% 90% 81% 81% 80% 79% 79% 78% 77% 76% 75% 75% 75% 74% 80% 70% 60% Aeronautical Revenue 50% CAGR 06 – 17E:12.1% 40% 30% 20% 26% 25% 25% 25% 24% 23% 22% 21% 21% 20% 19% 19% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E NON AERONAUTICAL REVENUE AERONAUTICAL REVENUE
Slide 27: Commercial Revenue per passenger 9M17
Commercial Revenue per passenger 9M17 (In Mexican Pesos) LO S CABO S 115.3 119.6 MONT EGO BAY 105.2 112.2 PUERT O V ALLART A 69.7 78.3 AGUASCALI EN T ES 52.8 56.5 GUANAJ UAT O 46.7 55.1 GUAD ALAJ ARA 48.1 48.9 T I J UANA 39.9 41.3 9M17 9M16 M ANZ ANI LLO 33.8 38.2 In 2017 we are estimating a M O REL
Slide 28: Commercial Revenue growth
Commercial Revenue growth TOTAL REVENUES 25% USD (In thousand of Mexican Pesos) 9M16 9M17 Change 75% MXN Businesses operated by third parties: Leasing of space 127,503 150,486 18.0% Car rentals 142,869 177,721 24.4% Food and bev erage operations 167,463 217,470 29.9% Retail operations 199,504 239,16
Slide 29: Revenue Strategy - Summarized
Revenue Strategy - Summarized Our main goal is to translate current traffic and future growth into higher revenues… Optimizing Rates Traffic at our network Working with commercial partners for higher sales per Maximize our Enhanced passenger by our Air share of a healthy Service aviation industry De
Slide 30: Commercial Revenue Development
Commercial Revenue Development While GAP has strong commercial revenue per passenger from Montego Bay, we continue working on increasing our ratios in the Mexican network: Commercial Revenue Per Passenger MXP at our top five Mexican Airports 140.00 117.6 120.00 100.00 88.6 80.00 76.6 56.0 50.2 55.2
Slide 31: Commercial strategy: 254% increase 2006 to 2016
Commercial Strategy has led to an increase of 254% from 2006 to 2016 in our Mexican airports Commercial revenue per passenger 70.00 (MXN) 59 60.00 55 CAGR 06-17E 53 50.00 8.1% 46 48 44 37 39 40.00 36 32 30.00 25 27 20.00 10.00 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 30.0% 25%
Slide 32: III – Airport Infrastructure
III – Airport Infrastructure
Slide 33: Master Development Program: CAPEX 2015 – 2019
Master Development Program: 2015 - 2019 MEXICO CAPEX 2015 – 2019 4% In thousand of Mexican pesos 15% 41% 1,875.4 420.0* 40% 1,550.0 1,126.4 948.2 Terminal Buildings Apron and airfield 383.1 Equipment Environment 2015 2016 2017 2018 2019 2017, 2018 and 2019 figures are updated to 2017 expected prices
Slide 34: CBX: Key Driver for Tijuana Airport
CBX: Key Driver for Tijuana Airport SOLICITAR FOTOS A third of Tijuana airport´s growth is due to CBX. As a result, domestic routes from Mexico are less expensive than international routes to cities such as Los Angeles and San Diego. CBX offers GAP’s passengers a new, safe and efficient option
Slide 35: CBX: Key Driver for Tijuana Airport
CBX: Key Driver for Tijuana Airport In the first year of operations, 1.3 million or The number of seats offered to/from tourist 21% of Tijuana passengers, used CBX. destinations is expected to increase 12% during 2017; this is a result of growing tourism During the first 9M17, this amount was
Slide 36: MAIN PROJECTS – GUADALAJARA Terminal Area
MAIN PROJECTS – GUADALAJARA Terminal Area Terminal 1 expansion. Ongoing, to be completed Dec 2017 Expansion of 15.000 sqm, equivalent to 35% of existing terminal building area 3 new contact gates with boarding bridges; 13 remote boarding gates. 40% increase in boarding gates Increasing the n
Slide 37: MAIN PROJECTS – GUADALAJARA
MAIN PROJECTS – GUADALAJARA Reorganization of external roadways. completed July 2017 Separate lanes for passengers cars and for public transportation vehicles. New access lane of 1,800 sqm Page 37
Slide 38: MAIN PROJECTS – TIJUANA Terminal Area
MAIN PROJECTS – TIJUANA Terminal Area Terminal building expansion. Ongoing, to be completed in 2018 Expansion of 25,000 sqm, equivalent to 57% of existing terminal building area Remodeling of 15,000 sqm Upgrading finishes of departure lounges and baggage claim areas New security checkpoint
Slide 39: MAIN PROJECTS – GUANAJUATO Terminal Area
MAIN PROJECTS – GUANAJUATO Terminal Area Remodeling and expansion of the Terminal Building. Just started, to be completed June 2018 New security control with one additional lane reaching 4 Tripling boarding lounge capacity 1 additional gate. reaching 6 Expansion of immigration point and cu
Slide 40: MAIN PROJECTS – HERMOSILLO Terminal Area
MAIN PROJECTS – HERMOSILLO Terminal Area Renovation and expansion of the Terminal Building. Completed 2017 New security checkpoint with two additional lanes reaching 4 New boarding lounge of 2,200 sqm with two contact gates and two air bridges Expansion of immigration and customs areas. 100%
Slide 41: MAIN PROJECTS – LOS CABOS Terminal Area
MAIN PROJECTS – LOS CABOS Terminal Area International Terminal Building Extension. Detailed design underway Construction of new boarding lounge 6,500 m2 and 10 remote boarding gates; commercial development improvements 3 new air bridges reaching 7 25% of expansion of immigration point: 2,300
Slide 42: IV – Financial Highlights
IV – Financial Highlights
Slide 43: Financial Results for 9M17
Financial Results for 9M17 9M16 9M17 Change Revenues Aeronautical serv ices 5,132,886 6,139,184 19.6% Non-aeronautical serv ices 1,773,034 2,107,452 18.9% Improv ements to concession assets (IFRIC 12) 1,437,879 1,049,786 (27.0%) Total revenues 8,343,799 9,296,422 11.4% Operating costs Costs of serv
Slide 44: FX Effect
FX Effect The Mexican peso devaluation generated a positive effect in our EBITDA in 2016 (millions of MEX MBJ TOTAL Percentage* USD): Total Revenue** 43 86 129 25% Total Expenses 14 41 55 18% EBITDA 29 45 74 25% * Percentage over the total amount in Mexican pesos **Excluding the effects of IFRIC 12
Slide 45: Outstanding Performance
Outstanding Performance If GAP reaches projected 2017 EBITDA, it will be doubling the amount in three years 2017E: MXP 11,040 2017E: MXP 7,640 2017E: MXP 4,267 CAGR 06 – 17E: 12.4% CAGR 06 – 17E: 12.8% CAGR 06 – 17E: 14.9% Page 45
Slide 46: Proven Track Record
Proven Track Record NET INCOME CAPEX STOCK MARKET MXP MILLIONS MXP MILLIONS CAPITALIZATION MXP MILLIONS 8 a S one SEs 2 06 07 08 O09 10 11 12 13 14 15* 16 06 O07 O08 O09 10 11 12 13 14 15* 16 6 07 08 09 10 11 412 13 14 15 16 f . a im fe: A *. - . F | RETURN ON ASSETSMR@A) RETURN ON EQUITY (ROE) Ba =
Slide 47: EBITDA Strength
EBITDA Strength 2016 Margin: 73% Mexico EBITDA MARGIN 53% Jamaica 70% 70% 69% 69% 68% 67% 67% 67% 66% 66% 65% 64% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E Cost of Service per PAX 11% EBITDA per PAX (MXP) 52 54 (MXP) 48 49 50 49 47 49 180 188 43 45 166 37 CAGR 06 – 17E: 6.0% 149 3
Slide 48: Financial Targets
Financial Targets • Maintain healthy financial levels Long Term Financial Targets: • Leveraging CAPEX Net Debt to EBITDA: below 2.2x • Potential Expansions leveraged Capital structure: 50 / 50 • Compliant debt covenants WACC: below 8.0% vs • Sustain debt ratings Interest coverage: above 5x • Improvi
Slide 49: Debt Ratings
Debt Ratings Standard & Poor’s: Downward rating if: Net debt to EBITDA over 3x • mxAAA – National scale • Outlook: Stable Interest coverage below 5x • Issued in October 2017 FFO/debt ratio below 30% Moody´s: Covenants 2016: Net debt to EBITDA = 0.7x • Aaa.mx – National scale • A3 – Global scale Inte
Slide 50: Debt Structure as of November 10, 2017
Debt Structure as of November 10, 2017 Total $13,121 (MXP millions) NET DEBT/ EBITDA Interest Rate Hedges 0.7X (77% Floating Interest Rate) Amount Rate Floor CAP1 CAP2 Maturity 30% USD (millions) MBJ Scotia Jan-Feb $478 $1,821 USD 191 Libor30 0.42% 1.75% 2.75% BBVA 2021 $1,821 “GAP15” Floating TIIE2
Slide 51: Distribution Policy
Distribution Policy • Pay all the excess of cash above a minimum cash balance (two months of OPEX + the debt service) • Dividend payment, or capital reimbursement, will take into account the most efficient fiscal practice 5,000 70 4,756 9% 47 4,500 8% 31 8% 8% 93 4,000 7% 7% 6% 3,889 3,500 170 43 15
Slide 52: Guidance 2017
Guidance 2017 Updated during July 17 GAP CONSOLIDATED Passenger Traffic 11% +- 1% Aeronautical Revenue 17% +- 1% Non-Aeronautical Revenue 17% +- 1% Total Revenue 17% +- 1% EBITDA 16% +- 1% EBITDA Margin 69% +- 1% CAPEX – MDP MXP 2,500 million Page 52
Slide 53: Forward-looking statements disclaimer
This document may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “be
Grupo Aeroportuario del Pacífico (GAP) — Investor Presentation (November 2017) on 6ix