Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q3 2018 Earnings Presentation
37 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, October 2018
Slide 1: Third Quarter 2018 Results
Grupo Aeroportuario del Centro Norte SAB de CV THIRD QUARTER 2018 RESULTS
Slide 2: Forward-looking 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 m
Slide 3: About the Company
About the Company Our businesses 13 Airports in the central-north region of Mexico, serving 21 million passengers in LTM September 2018. 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 ar
Slide 4: Agenda
Non- MDP & Company Aeronautical Financial Outlook and Aeronautical Maximum Overview Business Results Industry Business Rates Value Proposition Historical Performance Connectivity & 3Q18 Highlights Commercial Strategy Shareholder Structure New Routes Cost & Efficiency Investments 2016-2020 Diversific
Slide 5: Company Overview
Company Overview 1 Value Proposition 2 Historical Performance 3 Shareholder Structure 4 Board of Directors and Management Team 5 Operations & Sustainability 5
Slide 6: Company Overview | Value Proposition
Company Overview | Value Proposition 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 Constant growth Cost and Maximizin
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) 21.0 22.0 CAGR 2011-LTM Sep18 8,000 • PAX 8.7% 19.7 18.8 20.0 • Rev enues¹ 14.9% • Adjusted EBITDA 20.1% 6,504 16.9 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. $52.5 / USD Bn. $2.8 Note: Shareholding information as of September 30, 2018 1 Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controlador
Slide 9: Board of Directors & Management Team
Company Overview | Board of Directors & Management Team EXPERIENCED MANAGEMENT TEAM (Average time with OMA: 9 years) Porfirio González Chief Executive Officer With the Company since 1998 Ruffo Pérez Pliego Chief Financial Officer With the Company since 2018 CORPORATE GOVERNANCE Adriana Díaz Galindo
Slide 10: Company Overview | 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 3Q18 11
Slide 12: Aeronautical Business | Connectivity & New Routes
Aeronautical Business | Connectivity & New Routes 34 new direct rou tes i n 9M 18 Domestic Routes Top Routes LTM 1. MTY-MEX 3. CUL-TIJ 12 2. MTY-CUN 4. MTY-GDL 6 5. CUU-MEX 6 2 Top New Routes Opened in 2018 2 MTY-VER Aeroméxico Other MTY-QRO Vivaaerobus Domestic Routes MTY-DTW Aeroméxico 2 + 9.4% PA
Slide 13: Aeronautical Business | Passenger Traffic
Aeronautical Business | Passenger Traffic 3Q18 Passenger Traffic 9M18 Passenger Traffic Total Pax: 5.7 million (+10.5%) Total Pax: 16.0 million (+9.4%) 90% Domestic: 5.1 million (+11.4%) 88% Domestic: 14.1 million (+10.2%) 10% International: 0.6 million (+3.7%) 12% International: 1.9 million (+4.0%)
Slide 14: Aeronautical Business | Airline Participation
Aeronautical Business | Airline Participation LTM Sep18 TAR 3% (+25.1%) Total PAX 88% Domestic Other 5% (+6.9%) Passengers VivaAerobus Interjet 29% 16% (+17.8%) (-1.9%) American Airlines 2% (-1.1%) Other 12% (+3.9%) Volaris Aeroméxico 21% (+8.1%) 26% (+5.7%) Aeroméxico 27% (+4.1%) Interjet 15% (+0.1
Slide 15: Aeronautical Business | Aeronautical Revenues 3Q18
Aeronautical Business | Aeronautical Revenues 3Q18 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps.258mm Ps.1,355mm +25.4% +16.5% 76% of Total 19% of Revenue* Aeronautical Ps. 235.8 / PAX Revenue Ps.920 mm Ps.177 mm +14% +6.3% 68% of 13% of Aerona
Slide 16: Non-Aeronautical Business
Non - Aeronautical Business 1 Commercial Strategy 2 Diversification Strategy 3 NAR 3Q18 4 Historical NAR Growth 16
Slide 17: Non-Aeronautical Business | Commercial Strategy
Non-Aeronautical Business | Commercial Strategy Optimize Increase of passenger international Develop Add Maintain high exposure to brands premium innovative occupancy rates commercial complemented offerings advertising areas with local offering 38 Commercial Initiatives Implemented in 3Q18 Airport T
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 14.1% of NAR | 287 Rooms 6.0% of NAR | 134 Rooms Avg. Room Rate:PPs.2,182 per night Avg. Room Rate: Ps.2,150 per night 39.2% Occupancy Rate: 84%| EBITDA Margin: 38.3% Occupa
Slide 19: Non-Aeronautical Business | 3Q18
Non-Aeronautical Business | 3Q18 Non- Commercial Diversification Complementary Activities Activities Activities Aeronautical Revenues Ps.418mm Ps.141 mm +13.5% +10.2% 24% of Total Rev.* 34% of NAR Ps. 72.8 / PAX +2.7% Ps.211 mm Ps.67 mm +17.5% +9.0% 50% of NAR 16% of NAR * Total Revenues excluding C
Slide 20: Non-Aeronautical Business | 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 75 44 0 CAGR 2011 - LTM S
Slide 21: Financial Results
Financial Results 1 3Q18 Highlights 2 Cost & Efficiency 3 Balance Sheet 4 Profitability Indicators 5 Value Distribution 21
Slide 22: Financial Results | 3Q18 Highlights
Financial Results | 3Q18 Highlights Cost of Services and Consolidated Net Revenues* Adjusted EBITDA** G&A Income Ps. 379 mm Ps. 725 mm -5.2% +25.1% Ps. 65.9 / PAX (-14.3%) Ps. 126.2 / PAX (+13.2%) Ps. 1,774mm Ps. 1,266 mm +15.8% +23.8% Ps. 308.5 / PAX (+4.7%) Ps. 220.1 / PAX (+12%) Aeronautical +16.
Slide 23: Financial Results | Cost & Efficiency
Financial Results | Cost & Efficiency CAGR 2011 - LTM Sep18 Adj. EBITDA / PAX AR+NAR / PAX² Total Operating Costs and Expenses/ PAX 10.6% Costs and expenses control has contributed to EBITDA 5.8% growth -0.8% 2011 2012 2013 2014 2015 2016 2017 LTM Sep18 Distribution of Operating Costs and Expenses¹
Slide 24: Financial Results | Balance Sheet
Financial Results | Balance Sheet Strong Financial Position Low Leverage Ps.Million Net Debt / Adjusted EBITDA 1.0 4,592 2,305 0.9 0.8 0.6 0.5 0.5 0.5 2,287 2012 2013 2014 2015 2016 2017 LTM Total Debt Cash Net Debt Sep18 Debt Profile Capital Structure Evolution Total Debt | Shareholders’ Equity (Bo
Slide 25: Financial Results | Profitability Indicators
Financial Results | Profitability Indicators 35.0 ROA / ROE 32.9 Percentage 29.6 30.0 CAGR 2011 - LTM Sep18 28.0 • ROA +14.4% • ROE +18.3% 25.0 • EPS +22.6% 20.8 20.0 18.8 16.8 17.0 15.1 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 Sep18 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 27
Slide 28: 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 Committed 2,500 10 0% Actual / Expected 90 % Zacatecas, 2% Mazatlán, 3% 2,000 80 % Torreón, 3% Durango, 3% 1,788 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: 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* 1Q 2019** 0.3 0.9, +200% Terminal building, m2 +191% Commercial spaces, m2 +213% * New terminal net surface 30 ** Expected
Slide 31: Expansion & Remodeling of Terminals: Chihuahua Airport
MDP & Maximum Rates |Expansion & Remodeling of 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% 1Q 2019** 0.9 1.6, +78% Commercial spaces, m2 +30% * Net surface after remodeling and expansion 31 ** Ex
Slide 32: Expansion & Remodeling: San Luis Potosí Airport
MDP & Maximum Rates |Expansion & Remodeling of Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Total PAX mm 3,832 m2 7,170 m2* 1st phase opened in Ps.366 mm Terminal building, m2 +87% August, 2018 and fully 0.5 0.9, +80% Commercial spaces, m2 +32% completed in 2Q
Slide 33: 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 Recovery 99.
Slide 34: Outlook and Industry
Outlook and Industry 1 Industry Trends 2 Airline Fleets 34
Slide 35: Outlook and Industry | Industry Trends
Outlook and Industry | Industry Trends Air Industry has Low Projected Passenger Traffic Penetration in Mexico CAGR 2017-2037 Flights per capita per year Domestic Traffic, except Mexico-USA 2.6 4.8% 2.5 4.6% 4.5% 3.7% 3.4% 2.4% 2.0% 1.0 0.4 0.5 0.5 Argentina Mexico Brazil Chile Canada United United C
Slide 36: Outlook and Industry | Airline Fleets
Outlook and Industry | Airline Fleets Historical Airline Fleets and Available Seats Airplanes 2013 2014 2015 2016 2017 3Q18 133 131 130 124 125 117 85 78 Fleet 73 70 69 71 57 56 51 50 45 44 27 24 19 19 21 21 10 10 11 8 3 0 18,045 Available Seats 16,723 13,090 5,032 700 16,635 12,190 12,544 14,944 15
Slide 37: Grupo Aeroportuario del Centro Norte contacts
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 37
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMA) — Q3 2018 Earnings Presentation on 6ix