Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q1 2018 Earnings Presentation
40 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, April 2018
Slide 1: Investor Presentation First Quarter 2018 Results
INVESTOR PRESENTATION FIRST QUARTER 2018 RESULTS
Slide 2: Forward-looking statements disclaimer
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 m
Slide 3: About the Company
About the Company Our businesses 13 Airports in the central-north region of Mexico, serving 20 million passengers in LTM 1Q18. 2 Hotels; NH Collection Hotel in Terminal 2 of the Mexico City Airport, and Hilton Garden Inn at Monterrey Airport 1 Industrial Park at Monterrey Airport Who we are More tha
Slide 4: Company Overview Aeronautical Business Non-Aeronautical Business agenda
Non- MDP & Company Aeronautical Financial Outlook and Aeronautical Maximum Overview Business Results Industry Business Rates Value Proposal Historical Performance Connectivity & 2Q17 Highlights 1Q18 Commercial Strategy Industry Trends Shareholder Structure New Routes Cost & Efficiency Investments 20
Slide 5: Company Overview
Company Overview 1 Value Proposal 2 Historical Performance 3 Shareholder Structure 4 Board of Directors and Management Team 5 Operations & Sustainability
Slide 6: Company Overview | Value Proposal
Company Overview | Value Proposal Successful High potential Commitment to Sustained Visibility in commercial portfolio of safety, security passenger aeronautical and airports and and growth tariffs diversification businesses sustainability strategies Experienced Cost and Constant growth Maximizing b
Slide 7: Company Overview | Historical Performance
Company Overview | Historical Performance Sustained positive trends through economic and business cycles Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 3 20.0 CAGR 2011-LTM Mar18 19.7 18.8 20.0 • PAX 7.9% 6,031 • Rev enues 6,000 13.7% 5,803 • Adjusted EBITDA 16.9 18.0 18
Slide 8: Company Overview | Shareholder Structure
Company Overview | Shareholder Structure 12.6% 1 SETA – BB shares 85.5% 2 Public Float - B Shares 1.9% 1 CONOISA – B shares 3 Market Cap . Ps. Bn. $34.9 / USD Bn. $1.9 Note: Share holding information as of M arch 31, 2018 1 Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora
Slide 9: Board of Directors & Management Team
Company Overview | Board of Directors & Management Team EXPERIENCED MANAGEMENT TEAM (Average time with OMA: 12 years) Porfirio González Chief Executive Officer With the Company since 1998 Ruffo Pérez Pliego Chief Financial Officer CORPORATE GOVERNANCE With the Company since 2018 5 of 11 Directors ar
Slide 10: Operations & Sustainability
Company Overview | Operations & Sustainability Always striving to meet international standards. Occupational Health and Safety Aerodrome Certification Environment Quality and Customer Service CULIACÁN AIRPORT MAZATLÁN AIRPORT Social Responsibility Sustainability Performance 10
Slide 11: Aeronautical Business
Aeronautical Business Connectivity & 1 New Routes 2 Passenger Traffic 3 Airline Participation 4 Aeronautical Revenues 1Q18
Slide 12: Connectivity & New Routes
Aeronautical Business | Connectivity & New Routes 4 4 n e w d i r e c t r o u t e s i n 2 0 1 7 2 1 n e w d i r e c t r o u t e s i n 1Q18 Domestic Routes Domestic Routes 11 6 5 6 5 3 3 2 6 Other 2 Other International Routes International Routes 5 1 4 1 5 Other +2.0% +5.8% + 4 . 8 % Seats added + 8
Slide 13: Aeronautical Business | Passenger Traffic
Aeronautical Business | Passenger Traffic 2017 Passenger Traffic 1Q18 Passenger Traffic Total Pax: 19.7 million (+4.8%) Total Pax: 4.9 million (+8%) 88% Domestic: 17.2 million (+5.1%) 85% Domestic: 4.2 million (+8.4%) 12% International: 2.4 million (+2.8%) 15% International: 0.7 million (+5.8%) At M
Slide 14: Airline Participation LTM18
Aeronautical Business | Airline Participation LTM18 85% Domestic 15% International Passengers Passengers Magnicharter 3% Alaska 5% (+14.8%) (-18.4%) Other 6% Other 5% (-6.9%) (+2.7%) United 21% VivaAerobus (-0.6%) Charters 6% Interjet 28% (+0.2%) 17% (+22%) (+0.4%) Interjet 6% (+10.8%) Volaris 8% (-
Slide 15: Aeronautical Revenues 1Q18
Aeronautical Business | Aeronautical Revenues 1Q18 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps.301mm Ps.1,204mm +9% +18.7% 76% of Total 25% of Revenue* Aeronautical Ps. 245.6 / PAX Revenue Ps.734mm Ps.169mm +25.2% +11% 61% of 14% of Aeronautic
Slide 16: Non-Aeronautical Business
Non - Aeronautical Business 1 Commercial Strategy 2 Diversification Strategy 3 NAR 1Q18 4 Historical NAR Growth
Slide 17: Non-Aeronautical Business | Commercial Strategy
Non-Aeronautical Business | Commercial Strategy Balance Develop Maximize between premium Add commercial international offerings & innovative areas franchises & loyalty advertising local brands programs 10 Commercial Initiatives Implemented in 1Q18 Airport Type Quantity Monterrey Car rental 4 Culiacá
Slide 18: Non-Aeronautical Business | Diversification Strategy
Non-Aeronautical Business | Diversification Strategy NH Collection Hotel at Mexico City Airport Hilton Garden Inn Hotel in MTY 17.1% 17.4% of of NAR NAR || 287 287 Rooms Rooms 6.3% of 6.1% of NAR NAR || 134 134 Rooms Rooms Ps.2,342per Avg. Room Rate:Ps.2,226 pernight night(+5.1% yoy) Avg. Room Rate:
Slide 19: Non-Aeronautical Business | 1Q18
Non-Aeronautical Business | 1Q18 Non- Commercial Diversification Complementary Activities Activities Activities Aeronautical Revenues Ps.138mm Ps.376mm +5.9% +11.3% 24% of Total Rev.* 37% of NAR Ps. 76.7 / PAX Ps.174mm Ps.64 mm +13.8% +17.0% 46% of NAR 17% of NAR * Total Revenues excluding Construct
Slide 20: Historical NAR Growth
Non-Aeronautical Business | Historical NAR Growth Non-Aeronautical Revenues (NAR) have increased faster than passenger traffic as a result of commercial initiatives and diversification projects 800 NAR - Commercial/PAX NAR - Diversification/PAX NAR Complementary/PAX NAR PAX 44 0 CAGR 2011 - LTM Mar1
Slide 21: Financial Results
Financial Results 1 1Q18 Highlights 2 Cost & Efficiency 3 Balance Sheet 4 Profitability Indicators 5 Value Distribution
Slide 22: Financial Results | 1Q18 Highlights
Financial Results | 1Q18 Highlights Cost of Services and Consolidated Net Revenues* Adjusted EBITDA** G&A Income Ps. 394 mm Ps. 610 mm +3.1% +44% Ps. 80.4 / PAX (-4.5%) Ps. 124.5 / PAX (+33.4%) Ps. 1,580mm Ps. 1,072 mm +16.8% +23.1% Ps. 322.3 / PAX (+8.2%) Ps. 218.8 / PAX (+14%) Aeronautical +18.7%
Slide 23: Financial Results | Cost & Efficiency
Financial Results | Cost & Efficiency CAGR 2011 - LTM Mar18 Aj EBITDA / PAX AR+NAR / PAX Total Operating Costs and Expenses1/ PAX 10.6% Costs and expenses control 5.9% has contributed to the generation of EBITDA -0.2% 2011 2012 2013 2014 2015 2016 2017 LTM Mar18 Distribution of Operating Costs and E
Slide 24: Financial Results | Balance Sheet
Financial Results | Balance Sheet Strong Financial Position* Low Leverage Ps.Million Net Debt / Adjusted EBITDA 1.0 4,612 2,666 0.9 0.8 0.6 0.5 0.5 0.5 1,946 2012 2013 2014 2015 2016 2017 LTM Total Debt Cash Net Debt Mar18 Debt Profile* Capital Structure Evolution Total Debt | Shareholders’ Equity (
Slide 25: Financial Results | Profitability Indicators
Financial Results | Profitability Indicators 35.0 ROA / ROE Percentage 29.6 29.3 30.0 CAGR 2011 - LTM Mar18 28.0 • ROA +13.0% • ROE +16.4% 25.0 • EPS +21.1% 20.8 20.0 18.8 16.8 15.1 15.6 13.8 12.8 15.0 10.1 10.9 9.9 10.0 8.2 8.3 6.6 5.0 - 2011 2012 2013 2014 2015 2016 2017 LTM Mar18 Earnings per Sha
Slide 26: Financial Results | Value Distribution
Financial Results | Value Distribution Dividend or Capital Dividend Yield / Payout Ratio Reimbursement Percentage Percentage Ps. Million 1,600 1,600 250 8.6 9.0 1,400 8.0 1,200 1,200 1,200 200 6.9 7.0 5.7 6.0 150 147 4.4 4.5 5.0 4.2 3.9 4.0 100 117 113 500 100 3.0 81 85 75 2.0 50 1.0 - - 2011 2012 2
Slide 27: MDP & Maximum Rates
MDP & Maximum Rates 1 Investments 2016-2020 2 New Terminals 3 Maximum Rates
Slide 28: MDP & Maximum Rates | Investments 2016-2020
MDP & Maximum Rates | Investments 2016-2020 Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 Visibility of capital expenditure requirements through 2020 2,377 2,500 10 0% Committed 90 % Zacatecas, 2% Actual / Expected Mazatlán, 3% 2,000 80 % Torreón, 3% Durango, 3% Ciudad Juárez, Monterr
Slide 29: Investments 2016-2020: Most Important Projects
MDP & Maximum Rates | Investments 2016-2020 Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 Most Important Projects Other Terminal Expansion ICAO Certification Terminal • Chihuahua Expansion • Monterrey 0% • San Luis Potosí 6% & Remodeling • Ciudad Juárez Operational • Tampico Infrastru
Slide 30: New Terminals: Acapulco Airport
MDP & Maximum Rates | New Terminals Acapulco Airport m2 Investment Capacity Comfort Total Area Start of Operations Total PAX mm Ps.589 mm 3 levels plus a 13,534 m2 15,326 m2* April 17, 2018 1.1 1.3, +18% Terminal building, m2 +13% mezzanine Commercial spaces, m2 +42% * New terminal net surface 30
Slide 31: New Terminals: Reynosa Airport
MDP & Maximum Rates | New Terminals Reynosa Airport Investment Capacity Comfort Total Area Start of Operations Total PAX mm Ps.327 mm 2 levels 2,608 m2 7,590 m2* 4Q 2018** 0.3 0.9, +200% Terminal building, m2 +191% Commercial spaces, m2 +213% * New terminal net surface 31 ** Expected
Slide 32: San Luis Potosí Airport expansion and remodeling
MDP & Maximum Rates | Expansion & Remodeling Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Total PAX mm 3,832 m2 10,398 m2* Ps.366 mm Terminal building, m2 +171% 1Q 2019** 0.5 1.3, +160% Commercial spaces, m2 +116% * Net surface after remodeling and expansion 3
Slide 33: Chihuahua Airport expansion and remodeling
MDP & Maximum Rates | Expansion & Remodeling Terminals Chihuahua Airport Investment Capacity Total Area Start of Operations Total PAX mm 7,951 m2 13,074 m2* Ps.322 mm Terminal building, m2 +64% 4Q 2018** 0.9 1.6, +78% Commercial spaces, m2 +30% * Net surface after remodeling and expansion 33 ** Expe
Slide 34: Monterrey Airport Regional Boarding Area
MDP & Maximum Rates | Expansion & Remodeling Terminals Monterrey Airport – Regional Boarding Area Investment Capacity Total Area Start of Operations Total PAX mm 87 m2 502 m2* Ps.125 mm Terminal building, m2 +477% 2Q 2018** 2.3 3.2, +39% Commercial spaces, m2 +12% * Net surface after remodeling and
Slide 35: Visibility on Aeronautical Revenues Through 2020
MDP & Maximum Rates | Maximum Rates Visibility on Aeronautical Revenues Through 2020 • Maximum rate (Regulated revenue per workload unit) increased in each airport • The maximum rate for each succeeding year through 2020 will be adjusted by inflation and an efficiency factor of 0.70% MT Compliance 9
Slide 36: Outlook and Industry
Outlook and Industry 1 Industry Trends Airline Fleets: Orders and 2 Expected 3 Load Factor
Slide 37: Industry Trends
Outlook and Industry | Industry Trends Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2016-2036 5.1% 2.5 4.8% 4.8% 2.4 4.4% 3.5% 2.3% 2.0% 0.9 0.4 0.5 0.3 Argentina Mexico Brazil Chile Canada United United Canada Russia Mexico Brazil Brazil Central States States Ame
Slide 38: Airline Fleets: Orders and Expected
Outlook and Industry | Airline Fleets: Orders and Expected Historical Airline Fleets and Available Seats Airplanes 2013 2014 2015 2016 2017 1Q18 133 131 130 124 125 117 78 78 Fleet 70 69 71 70 56 56 51 50 45 44 24 24 19 19 21 21 8 10 10 10 3 0 Available Seats 18,268 17,846 16,723 12,282 12,574 12,40
Slide 39: Airline Expansion Orders
Outlook and Industry | Airline Fleets: Orders and Expected Airline Expansion Orders (2013 – 2022) 100 80 55 47 Aeromexico Interjet Vivaaerobus Volaris Source: DGAC, Airlines. Latest information available. 39
Slide 40: Contact / Investor Relations
Grupo Aeroportuario del Centro N o r t e , S . A . B . , d e C . V. Chief Financial Officer Ruffo Pérez Pliego | rperezpliego@oma.aero | +52.81.8625.4300 Investor Relations Emmanuel Camacho | ecamacho@oma.aero | +52.81.8625.4308
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