Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q1 2014 Earnings Presentation
37 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, 2014
Slide 1: First Quarter 2014
First Quarter 2014 Grupo Aeroportuario del Centro Norte S.A.B. de C.V.
Slide 2: Investment Highlights
Investment Highlights 1 Mexican airport portfolio positioned to take full advantage of global growth. 2 Diversified business model contributing to earnings resilience. 3 Well-defined strategy to capitalize favorable industry dynamic in traffic increases and profitability. 4 Successful implementation
Slide 3: Company Overview
Company Overview
Slide 4: Broad Portfolio of Mexican airports
Broad Portfolio of Mexican airports Airport Distribution: Portfolio of 13 airports across 9 Mexican states. 1 Metropolitan 7 Regional 50-year Federal concessions with 34 years of 3 Tourist remaining life. 2 Border City Hotel NH T2 20-year lease to operate the NH Hotel T2 in the Mexico City airport t
Slide 5: A History of Successful Milestones
A History of Successful Milestones Positive trend in passenger traffic. Sustained growth in revenues. Track record of operating efficiency and profitability. Business model resilient due to increasing Non-Aeronautical revenues. Consistent Growth and Operating Performance 1 Revenue figures in MXN mil
Slide 6: World Class and Experienced Shareholders
World Class and Experienced Shareholders AEROINVEST, 24.70% SETA-AEROINVEST, SETA 1 12.40% 16.70% PUBLIC FLOAT, 2 58.60% SETA-ADP, 4.30% Mexico’s leading construction and infrastructure operations Company that specializes in airport management around the company, with important operations in Latin A
Slide 7: Industry Outlook
Strong Strategic Partner AEROINVEST, 24.70% SETA-AEROINVEST, 12.40% 16.70% SETA1 PUBLIC FLOAT,2 58.30% SETA-ADP, 4.30% Aeroinvest, Mexico’s leading construction and Company that specializes in airport management infrastructure operations company, with important around the world, as well as participa
Slide 8: Positive Trends in Aeronautical Industry
Positive Trends in Aeronautical Industry Projected GDP GAGR1 2012-2030 Projected Domestic Passenger Traffic CAGR1 2013-2032 3.6% 3.5% 5.7% 5.7% 3.2% 5.0% 5.0% 2.6% 3.2% 2.3% 2.1% 1.9% Mexico Brazil Argentina Colombia Mexico United Eastern Canada Middle South Asia Central Mexico Brazil Argentina Colo
Slide 9: Positive Outlook in Mexico
Positive Outlook in Mexico Travelers in Mexico by Type of Transportation Air Passenger Transport per Capita 2.3 2.1 23.9% Economy bus 0.4% 1.5% Airplane 1.6% Executive bus 1.9% 70.7% Train 0.7 Sea Transportation 0.5 0.3 0.2 Luxury bus Mexico Argentina Brazil Chile Canada United States Source: Minist
Slide 10: OMA Strategy
Increase Aeronautical Develop Air Traffic and Revenues Operational, Security, and Connectivity Efficiency Leadership Sustainable Company New Concession Opportunities OMA Strategy Diversification Increase Non- Aeronautical Revenues Improve Passenger Experience
Slide 11: Air Traffic Development Strategy
Air Traffic Development Strategy
Slide 12: Well-Defined Strategy to Drive Increase in Traffic and Profitability
Well-Defined Strategy to Drive Increase in Traffic and Profitability Incentive Strategy to Increase Aggregate Traffic Increase and Capture Growing LCC Passenger Traffic 1 2 Million of Passengers 10.4 9.4 6.1 5.8 5.3 6.5 6.5 Limited-Time Discounts Complementary Marketing 6.5 6.7 5.4 5.8 6.1 4.6 3.8 F
Slide 13: Commercial Strategy
s i \ | Heinek Ae \ Wy Wl . VS La — = «=a y a J =m Commercial strategy
Slide 14: Improve Passenger Experience
Improve Passenger Experience Commercial Key Points Maximize commercial areas. Improve commercial offerings. Increase presence of international franchises and renowned local brands. New services and sales channels. Introduce “Premium” strategy focus and loyalty programs. Marketing strategy: campaigns
Slide 15: Diversification Strategy
Diversification Strategy
Slide 16: Diversification Strategy Moving Forward
Diversification Strategy Moving Forward Intermodal Centers Industrial and Logistic Hotels Parks Expansion plan through new businesses in our land reserve. Commercial and Retail Centers 16 Offices Service Stations
Slide 17: Monterrey Airport Hotel
Monterrey Airport Hotel Partnership: Grupo Hotelero Santa Fe with15% stake and OMA 85%. Terminal A Completition and opening 1Q15. 134 rooms. Hotel Terminal B Restaurant-bar services. Gym. Business center. Expected Hotel investment Ps. 160 million. 17
Slide 18: Industrial Park at Monterrey Airport
Industrial Park at Monterrey Airport Joint venture: OMA 51%-VYNMSA 49%. 32 hectares. Urbanization works and first warehouse (5,000 m2) expected to be finished on late 2014. Expected investment Ps.600 million. Commercial area (future) Industrial Park 18
Slide 19: Operational and Sustainability Leadership
Operational and Sustainability Leadership
Slide 20: Sustainable Management Model
Sustainable Management Model OMA is part of the Mexican Stock Exchange OMA Sustainability Report issued according Sustainability Index since 2012. to Global Reporting Initiative Guidelines. Corporate Social Occupational Health and Quality Assurance Environmental Care Responsibility Safety ISO 9001 C
Slide 21: Results & Track Record
Results & Track Record & Track Record Results
Slide 22: Diversified Business Model Contributing to Earnings Resilience
Diversified Business Model Contributing to Earnings Resilience Aeronautical and Non-Aeronautical Revenue Mix 1Q14 Aeronautical Revenue/pax: Ps.172.5 Non Aeronautical Revenue/pax:Ps. 64.0 +1.1 vs. 1Q13. +5.5% vs. 1Q13. 73% 27% Aeronautical Revenues Non-Aeronautical Revenues Million Pesos Million Peso
Slide 23: Commercial Strategy Results
Commercial Strategy Results 6.8% increase in commercial revenues: 96.2% occupation rate in commercial areas. +13.8% increase in parking revenues. +20.5% increase in restaurant revenues. +10.1% increase in advertising revenues. +13.9% increase in car rentals revenues. +8.8% increase in retail revenue
Slide 24: NH Hotel Strong Results
NH Hotel Strong Results Now operates its own parking area. Well positioned in market. 3 new events salons. %Change Ps. million 1Q14 QoQ1 Total Revenues 48 18.3 Operating Result 15 35.3 Mexico City Airport Hotel Market +15.7% vs 1Q13 EBITDA 20 22.9 RevPAR2: 1,423 EBITDA Margin 41.7% 156 bp Occupancy
Slide 25: Operating Cost and Expenses
Operating Cost and Expenses % Change Cost control initiatives: Ps. million 1Q14 QoQ1 Increase efficiency in conjunction with Total Operating Costs and suppliers. Expenses Cost of Services 180 15.5 Strengthen audit and cost control system. General and Administrative 123 17.9 Expenses Develop a saving
Slide 26: 1Q14 Highlights
1Q14 Highlights % Change Million pax/pesos 1Q14 QoQ1 Strategy execution across all Passenger Traffic 3.2 6.8 business lines: Aeronautical Revenues 558 7.9 +7.9% Aeronautical Revenues: Non Aeronautical 19 new routes. 207 12.7 Revenues 6.8% increase in passenger traffic. Total Aeronautical + Non +12.7
Slide 27: OMA's Strategy has resulted in Strong Traffic, Revenues and Adjusted EBITDA Growth
OMA’s Strategy has resulted in Strong Traffic, Revenues and Adjusted EBITDA Growth Passenger Traffic and Revenue Growth Passenger Traffic and Non Aeronautical Revenue Growth Pesos and million of terminal passengers Million of terminal passengers and Million of Pesos .0 232 CAGR 224 231 250 CAGR 09-1
Slide 28: Focus on Generate Value
Focus on Generate Value ROA / ROE EPS Pesos ROA ROE 20.0% 18.0% 3.01 18.8% 16.0% 14.0% 12.0% 2.05 12.8% 10.0% 11.2% 10.9% 1.65 10.1% 1.54 8.0% 1.37 8.2% 1.19 6.0% 7.2% 7.6% 6.1% 6.6% 4.0% 5.5% 4.6% 2.0% 0.0% 2008 2009 2010 2011 2012 2013 2008 2009 2010 2011 2012 2013 Historical Dividend / Capital Re
Slide 29: Solid Balance Sheet and Capital Structure
Solid Balance Sheet and Capital Structure Total Debt Profile as of March 2014 Debt Maturity Profile Million Pesos 1,600 1,400 1,500 7% 1,200 1,300 1,000 800 600 400 100 93% 200 - 34 34 34 26 79 1 year 2 year 3 years 4 years 5 years + USD Debt OMACP OMA11 OMA13 Pesos USD Net Debt as of March 2014 Net
Slide 30: High Visibility for Capital Investments
High Visibility for Capital Investments 2011-2015 MDP1,2 Additional Recognition of Land Acquired Million Pesos Federal Government agreed to recognize land reserve for Programmed MDP Investments = Ps. 2,745.2 Ps. 492.2 million acquired for Culiacan and Monterrey Oriented to improve quality of service
Slide 31: Subsequent Events
Subsequent Events Capital Reimbursement Approved Additional Line of Credit The Annual Shareholders’ Meeting approved on April 10, US$ additional Debt of US$ 3.1 million, guaranteed by ExIM Bank. Quarterly amortization, maturity 2019. 2014 a capital reimbursement to shareholders of Ps 1,200 Floating
Slide 32: Outlook
Outlook
Slide 33: Outlook
Outlook Real 1Q14 Expected 2014 Traffic growth 6.8% 4%-6% Aeronautical revenue + 9.2% 8%-10% Non-Aeronautical revenue growth Adjusted EBITDA Margin 52.8% 51%-53% MDP CAPEX(million pesos) 123 600-750 Strategic CAPEX (million pesos) 16 250-450 OMA is providing this outlook based on internal estimates.
Slide 34: Our Airports
Our Airports
Slide 35: San Luis Potosí
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Slide 36: Acapulco
Acapulco
Slide 37: Mazatlán
Mazatlan AEROPUERTO INTERNACIONAL DE MAZATLAN
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (OMA) — Q1 2014 Earnings Presentation on 6ix