Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (2013)
25 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, Jun 18, 2013
Slide 1: Strategic Overview
Strategic Overview Fernando Bosque Chief Executive Officer
Slide 2: Mexican Airport Industry
Mexican Airport Industry
Slide 3: Mexican Airports - Total Passengers 2012
Mexican Airports - Total Passengers 2012 Mexican Airport Mexican Aiport Groups Groups OTHERS 4.83% Mexican Airport Groups Total Passsengers 2012 AICM 29,481,343 14.50% GAP 21,287,278 ASUR 19,316,695 OMA 12,594,382 33.94% OTHERS 4,193,494 TOTAL MEXICO 86,873,192 22.24% 24.50% Page 3
Slide 4: Strategic Outlook–Mexican Airport Industry: Challenges
Strategic Outlook–Mexican Airport Industry Challenges •Since 2007, airline industry lost 155 aircrafts due to air carrier bankruptcy •There is still a deficit of over 70 planes in the country •Mexican carriers continue to have low capacity •Small but growing competition: 3 Mexican carriers control 7
Slide 5: Strategic Outlook–Mexican Airport Industry: New Industry Dynamic
Strategic Outlook–Mexican Airport Industry However, a new industry dynamic… •Growing fleet: Current overall domestic fleet is around 260 aircrafts and is expected to grow 12% (over 29 aircrafts) vs. 2012 •Volaris and Interjet are purchasing new A-320s •AMX will substitute ERJ’s with 190LR’s; Interje
Slide 6: Post-2009 Global Recovery Continues
Post-2009 Global Recovery Continues… … Expectation to recover 2007 passenger figures in 2014 Passenger Traffic Trend (scheduled and charter flights) Mexico International Market1 Mexico-U.S.1 Passengers Passengers (‘000) (‘000) Financial MX Ceases 30,000 Crisis Ops 25,000 Financial Crisis MX Ceases 2
Slide 7: Total Traffic in Mexico: Share Domestic and Foreign Air Carriers
Total Traffic in Mexico: Share Domestic and Foreign Air Carriers Share: Domestic and Foreign Air Carriers 70.00% 61.5% 59.5% 60.00% 50.00% 40.00% 29.1% 30.00% 27.0% 20.00% 10.00% 4.2% 4.0% 3.8% 3.6% 3.4% 3.8% 0.00% Mexican Total* American Total Canadian Total European Total Central and Latinamerican
Slide 8: Share by Mexican Airlines in Domestic and International Market
Share by Mexican Airlines in Domestic and International Market: Total Mexico 11 vs 12 Share: Domestic and Internatinonal Market 50.00% 45.6% 45.00% 42.8% 40.00% 35.00% 30.00% 25.00% 21.2% 21.3% 20.7% 20.00% 18.7% 15.00% 10.0% 10.7% 10.00% 5.00% 2.6% 2.8% 1.9% 1.6% 0.00% Aeroméxico Group Interjet (AB
Slide 9: Share by Mexican Airlines in Domestic Market
Share by Mexican Airlines in Domestic Market: Total Mexico 11 vs 12 Share: Domestic Market 45.00% 40.1% 40.00% 37.7% 35.00% 30.00% 24.9% 25.00% 23.9% 20.5% 20.00% 18.1% 15.00% 12.5% 11.5% 10.00% 5.00% 3.1% 3.4% 2.3% 2.0% 0.00% Aeroméxico Group Interjet (ABC Volaris Vivaaerobus Magnicharters Aeromar
Slide 10: Share by Mexican Airlines in International Market
Share by Mexican Airlines in International Market: Total Mexico 11 vs 12 Share: International Market 80.00% 74.9% 70.00% 67.0% 60.00% 50.00% 40.00% 30.00% 22.0% 21.9% 20.00% 9.0% 10.00% 1.6% 1.6% 2.2% 0.0% 0.0% 0.00% Aeroméxico Group Volaris (Concesionaria Interjet (ABC Aerolíneas) Vivaaerobus Aerom
Slide 11: What this means for GAP
What this means for GAP…. Growth of market will directly benefit GAP • Mexican carriers will add more capacity introducing additional planes to address demand • Market will expand 25% seats capacity so GAP´s airports will benefit in coming years • Beach destinations will benefit U.S. and CAN capacit
Slide 12: Growth Pillars
Growth Pillars
Slide 13: GAP's Growth Pillars
GAP’s Growth Pillars Cost Commercial Revenue CAPEX Quality Controls Maximization Page 13
Slide 14: Cost Controls
Cost Controls • Management of the operational cost • Outsourcing of security services and passenger shuttles and buses to third parties, generating important savings • Procurement strategies providing savings and certainly of costs in the future • Good relationships with unions, generating workforce
Slide 15: Commercial Revenue Maximization
Commercial Revenue Maximization GAP’s ability to implement commercial strategies • Development non-aeronautical revenue sources: • i.e ground transportation, retail, DuFry and food and beverages, direct management of VIP lounges, advertising, FBO, and convenience stores to be the main contributor of
Slide 16: EBITDA Strength
=EBITDA Strength • In 2007, GAP highest level of traffic (23.5 million of EBITDA and EBITDA PER PAX passengers), we obtained Ps. 3,500 140.00 140.00 140.00 99 EBITDA / PAX ratio. 140.00 3,000 130.00 130.00 130.00 130.00 • In 2008, despite losing Ps. 2,500 120.00 120.00 120.00 120.00 1.3 million pass
Slide 17: CAPEX
CAPEX • GAP’s airports have enough growth capacity; however renovations necessary to improve quality and incentivize commercial activities • Proper planning to gradually develop capacity • Good execution of CAPEX program to adjust capacity to demand • Completed 80% of 5-year Master Development Progr
Slide 18: Quality
Quality GDL, SJD and PVR shows good quality ratio following ASQ standards, achieving more than 4 over 5… 2008 2009 2010 2011 2012 Quality Index (Average) 4.16 4.18 4.10 4.25 4.37 GAP´s Average Quality Index 4.4 4.37 4.35 4.3 4.25 4.25 4.2 4.18 4.15 4.16 4.1 4.10 4.05 4 3.95 2008 2009 2010 2011 2012
Slide 19: Why the Sky is the Limit at GAP: Strengths
Why the Sky is the Limit at GAP Strengths
Slide 20: Unique Airport Portfolio
Unique Airport Portfolio Balanced assets: Half of GAP´s airports produce: 90% of traffic and revenues but only 80% of operational cost, delivering 95% of total EBITDA, 70% margin and 100% of net earnings. Type / Airport By Market Tourist destinations (PVR, SJD, LAP & ZLO) 30% Domestic 66% Business d
Slide 21: Opportunities
Opportunities …to add value: Commercial businesses development Fleet / network expansion expected to bring more passengers Technological innovations to improve operating efficiencies Improve ground transportation system, which has important potential Analysis of other markets for expansion
Slide 22: Distribution Policy Strategy
Distribution Policy Strategy PAC is a steady value stock with a high level of profitability Full cash available to shareholders considering net earnings and equity reduction, in line to the concession asset amortization A prudent approach for return to shareholders Dividends from net earnings
Slide 23: Tijuana International Airport
Tijuana International Airport Important expectations of air carriers to attract pax /create new demand… - Tijuana upgrade seeks to develop options for passengers who use Tijuana as point of entrance in California area Page 23
Slide 24: Targets
Targets In 2014, reach 2007 figures… EBITDA must increase at the same pace, a minimum of 4%, as its was during 2007-2012 --- reaching 30% increase GAP seeking to reach 50% higher margin in 2013 than in 2007, when GAP was the top of the activity of the airport group Commercial revenues must gen
Slide 25: Forward-looking statements disclaimer (Spanish)
Este documento puede contener en las declaraciones ciertas estimaciones. Estas declaraciones son hechos no históricos, y se basan en la visión actual de la administración de GAP de las circunstancias económicas futuras, de las condiciones de la industria, el desempeño de la com pañía y resultados fi
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