Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q4 2015 Earnings Presentation
32 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, February 2016
Slide 1: Fourth Quarter 2015 Results
Grupo Aeroportuario del Centro Norte Fourth Quarter 2015 Results
Slide 2: Agenda
Aeronautical Company Overview Business Historical Performance Synergy with Airlines 4Q15 Highlights Connectivity Shareholders Passenger Traffic Business Strategy Airline Participation Aeronautical Revenues 4Q15 Non-Aeronautical Business Financial Information Commercial Strategy Profitability Indicat
Slide 3: Menu: Company Overview
Menu Company Overview | Historical Performance | 4Q15 Highlights | Shareholders | Business Strategy
Slide 4: Historical Performance
Menu Historical Performance Sustained positive trends through economic and business cycles Aeronautical Revenues Non Aeronautical Revenues Passenger Traffic (million) 16.9 CAGR 5,000 14.2 14.1 14.7 1 16.0 4,500 13.3 4,145 12.6 14.0 2002-2015 11.8 11.6 11.8 4,000 11.5 3,422 3,500 10.6 3,065 29% 12.0
Slide 5: 4Q15 Highlights
Menu 4Q15 Highlights Adjusted Consolidated Passengers Revenues* EBITDA** Net Income 4.4mm Ps. 1,137mm Ps. 651mm +11.3% +26.6% +39.6% Ps. 396mm Domestic +11.6% Aeronautical +24.5% 4Q15 Margin 57.2% +39.3% International +9.5% Non-Aero +32.4% 4Q14 Margin 51.9% * Total Revenues not considering Construct
Slide 6: Shareholders
Menu Shareholders AEROINVEST, 3.8% (B Shares) SETA- AEROINVEST, SETA, 16.7% 12.4% PUBLIC FLOAT, * (12.4% BB Shares + 79.5% 4.3% B Shares) (B Shares) SETA-ADP, 4.3% *Includes 7,843,623 repurchased shares as of February 26th, 2016 (2.0% of total shares). Note: Information as of February 26th, 2016
Slide 7: Business Strategy
Menu Business Strategy Operational, Security & Efficiency Leadership Maximize Aeronautical Maximize Non-Aeronautical Revenues Revenues Air Traffic & Connectivity Improve Passenger Experience Development Diversification Business Sustainable Company
Slide 8: Menu: Aeronautical Business
Menu Aeronautical Business Airlines Sinergy | Connectivity | Traffic | Airline Participation | Aeronautical Revenues
Slide 9: Airline Synergy
Menu Airline Synergy Important Projects New Routes Airline Project 2014 2015 Total Regional HUB in MTY 11 3 14 Secondary Base in MTY 9 1 10 Secondary Base in MTY 21 7 28 Operations with New 12 15 27 Airline
Slide 10: Connectivity
Menu Connectivity 31 new direct routes in 2015 Domestic Routes Airline Domestic Routes Airline International Routes Airline Monterrey – Tijuana Aeromexico Mazatlan – Monterrey TAR Monterrey – Miami Aeromexico Monterrey – Toluca Aeromexico Mazatlan – Guadalajara TAR Monterrey – Miami American Airline
Slide 11: Passenger Traffic
Menu Passenger Traffic (+12%) Airport Types (%Part) Metropolitan (50.0%) Passenger Traffic 4Q2015 Border Cities ( 8.1%) Tourist (12.7%) • Total Pax: 4.4 million (+11.3%) (+15%) Regional (29.2%) • Domestic: 3.8 million (+11.6%) (+6%) (+19%) • International: 0.6 million (+9.5%) (+7%) (+10%) (+23%) (+1
Slide 12: Airline Participation
Menu Airline Participation Domestic Passengers International Passengers Other Other VivaAerobus American 8% Aeromexico 13 14% Volaris 21 20% 31% 4% 18% Volaris 4% Alaska 4% 5 6 5% 19% 21% Interjet United 22% 12% Interjet 16% VivaAerobus Delta Aeromexico Note: Information as of December 31st, 2015
Slide 13: Aeronautical Revenues 4Q15
Menu Aeronautical Revenues 4Q15 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps. 496mm Ps. 171mm Ps. 139mm Ps. 807mm +18.6% +63.6% +11.4% +24.5% 62% of 21% of 17% of 71% of Total Rev.* Aeronautical Rev. Aeronautical Rev. Aeronautical Rev. Ps. 185
Slide 14: Menu: Non-Aeronautical Business
Menu Non-Aero. Business | Commercial Strategy | Diversification Strategy | Historical NAR Growth | NAR 3Q15
Slide 15: Commercial Strategy
Menu Commercial Strategy Innovative Maximize International Premium Strategy Advertising Commercial Areas Franchises & & Loyalty Programs Renowned Local Brands Commercial Initiatives Implemented in 4Q15 Type Quantity Ciudad Juárez, Chihuahua, and Torreon Passenger Services 3 Acapulco, Monterrey, San
Slide 16: Diversification Strategy
Menu Diversification Strategy OMA Carga - Logistics Center Hotel NH-T2 Real Estate Development Av. Rate Ps.2,164 Occ. Rate 84.3% %EBITDA 2015 +101% revenues in 4Q15 39% Industrial Park| OMA-VYNMSA Hotel Hilton Garden Inn - MTY Beginning of Two Operations Contracts August 27th Signed on Av. Rate Buil
Slide 17: Historical Non-Aeronautical Revenue Growth
Menu Historical Non-Aeronautical Revenue Growth Non-Aeronautical Revenues (NAR) have increased faster than passenger traffic as a result of commercial initiatives and diversification projects NAR Total Passengers 201.1% Base = 2009 140.9% 115.6% 86.6% 59.4% 46.7% 33.2% 27.6% 9.3% 15.4% 0.0 0.6% 2.2%
Slide 18: Non-Aeronautical Revenues 4Q15
Menu Non-Aeronautical Revenues 4Q15 Commercial Diversification Complementary Non-Aeronautical Activities Activities Activities Revenues Ps. 142mm (+7%) Ps. 104mm (+56%) Ps. 50mm (+21%) Ps. 330mm (+32%) 43% of NAR 32% of NAR 15% of NAR 29% of Total Rev * Ps. 75.5 / PAX Main Activities Main Activities
Slide 19: Menu: Financial Information
Menu Financial Information | Profitability Indicators | Value Distribution | Balance Sheet
Slide 20: We Continue to Improve Profitability
Menu We Continue to Improve Profitability ROA / ROE 25.0 20.8 18.8 20.0 Percentage 16.8 15.0 12.8 10.1 10.9 9.9 8.2 8.2 6.6 10.0 5.0 - 2011 2012 2013 2014 2015 Earnings per Share 3.01 2.58 3.14 Ps. 2.05 1.54 2011 2012 2013 2014 2015
Slide 21: Focus on Generating Value
Menu Focus on Generating Value Historical Dividend or Capital Dividend Yield and Payout Reimbursement Ratio Ps. Million 1,400 Percentage Payout Ratio Dividend Yield Título del gráfico 1,200 1,200 1,200 250 8.6 10.0 6.9 1,200 5.7 1,000 4.2 4.4 200 5.0 800 150 147 0.0 117 600 500 100 400 100 81 -5.0 6
Slide 22: Healthy Balance Sheet
Menu Healthy Balance Sheet Strong Financial Position* Low Leverage vs Industry* Ps. Million Net Debt / Adjusted EBITDA 1.0 0.9 0.8 0.8 0.8 4,713 2,666 0.6 2,047 2,047 Total Debt Cash Net Debt 2010 2011 2012 2013 2014 2015 Debt Profile* 5% USD Capital Structure Improvement* Total Debt | Shareholders’
Slide 23: Menu: MDP & Maximum Tariffs
Menu MDP & Maximum Tariffs | | Investments 2011-2015 | Investments 2016-2020 | Maximum Tariffs
Slide 24: Master Development Plan 2011-2015
Menu Master Development Plan 2011-2015 Total Investment Ps. $3,275mm $1,0 00 100 % $866 $815 $90 0 90% pesos of Dec. 31st, 2014 $80 0 80% $70 0 $640 70% $565 Most Important Projects $60 0 60% • MTY Terminal A rehabilitation $50 0 50% • MTY Terminal C expansion $40 0 $389 40% • MTY Platform expansion
Slide 25: Master Development Plan 2016-2020
Menu Master Development Plan 2016-2020 ZIH, 7% Total Investment Ps. $4,446mm ZCL, 2% ACA, 13% pesos of Dec. 31st, 2014 TRC, 3% CJS, 4% TAM, 7% CUL, 4% $1,4 00 $1,296 $1,243 100 % 90% SLP, 9% $1,2 00 $1,0 00 $945 80% 70% CUU, 10% 60% $581 REX, 8% $80 0 50% $60 0 29% 28% $381 40% DGO, 3% 21% MZT, 3% 3
Slide 26: Master Development Plan 2016-2020
Menu Master Development Plan 2016-2020 Investment Distribution Terminal Other Expansion & Most Important Projects Remodeling ICAO Certification 6% • Terminal Expansion 7% • Monterrey Operational • Ciudad Juarez Infrastructure • Chihuahua 11% • San Luis Potosi Expansion 49% • Tampico • New Terminals
Slide 27: Maximum Tariffs
Menu Maximum Tariffs Airport 2015(1) (2) 2016(1) Visibility on Acapulco 210.95 242.73 Aeronautical Cd. Juarez Chihuahua 162.71 166.51 183.80 185.11 Revenues Through Culiacan Durango 173.67 196.87 195.71 224.73 2020 Monterrey Mazatlán 160.80 193.84 179.37 215.89 Reynosa 186.30 209.77 • Maximum tariff
Slide 28: Menu: Outlook
Menu Industry Outlook | Company Outlook | Industry Trends | Mexican Industry Outlook
Slide 29: Outlook 2016
Menu Outlook 2016 Passenger Traffic Growth 6%-8% Aeronautical Revenue Growth 22%-24% Non-Aeronautical Revenue Growth 13%-15% Adjusted EBITDA Margin 60%-62% MDP Investments (Ps. Million) 1,500-1,700 Strategic Investments (Ps. Million) 150-250 OMA is providing this outlook based on internal estimates.
Slide 30: Positive Trends in the Aeronautical Industry
Menu Positive Trends in the Aeronautical Industry Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2015-2034 5.4% 5.6% 2.4 4.8% 2.1 2.0 4.2% 2.4% 0.8 1.7% 0.5 0.9% 0.3 0.2 Mexico Argentina Brazil Canada Chile United Mexico Brazil United Canada Russia Central South Sta
Slide 31: Positive Outlook in Mexico
Menu Positive Outlook in Mexico Airlines’ Fleet Airlines’ Expansion Orders Airplanes Airplane orders (2013 – 2022) 122 100 70 54 55 52 44 18 8 3 TAR Vivaaerobus Interjet Volaris Aeromexico Aeromexico Interjet Vivaaerobus Volaris TAR Source: DGAC, Airlines. Last information available. Source: DGAC, A
Slide 32: Investor Relations Contacts
Grupo Aeroportuario del Centro Norte Fourth Quarter 2015 Results Chief Financial Officer Vicsaly Torres | vtorres@oma.aero | +52.81.8625.4300 Investor Relations Team Emmanuel Camacho | ecamacho@oma.aero | +52.81.8625.4308 Manuel Higinio de León | mdeleon@oma.aero | +52.81.8625.4334 Laury Franco Cast
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