Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q2 2018 Earnings Presentation
39 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Jul 30, 2018
Slide 1: Second Quarter 2018 Results
Grupo Aeroportuario del Centro Norte SAB de CV SECOND 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 June 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 are Mor
Slide 4: Agenda
Non- MDP & Company Aeronautical Financial Outlook and Aeronautical Maximum Overview Business Results Industry Business Rates Value Proposition Historical Performance Connectivity & 2Q18 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) 3 20.5 CAGR 2011-LTM Jun18 19.7 18.8 6,262 20.0 • PAX 8.2% • Rev enues¹ 6,000 14.3% 5,803 • Adjusted EBITDA 16.9 18.0 1
Slide 8: Company Overview | Shareholder Structure
Company Overview | Shareholder Structure 12.6% 1 SETA – BB shares 85.5% Public Float2 - B Shares 1.9% CONOISA1 – B shares Market Cap3. Ps. Bn. $40.8 / USD Bn. $2.1 Note: Shareholding information as of June 30, 2018 1 Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Oper
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: 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 2Q18 11
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 31 new direct rou tes i n 6M 18 Domestic Routes Domestic Routes 11 12 5 6 5 5 3 2 6 Other 2 Other International Routes International Routes 5 2 4 1 5 Other +2.0% 1 +8.6% Seats Seats + 4 . 8 % added in + 8
Slide 13: Aeronautical Business | Passenger Traffic
Aeronautical Business | Passenger Traffic 2Q18 Passenger Traffic 6M18 Passenger Traffic Total Pax: 5.4 million (+9.6%) Total Pax: 10.3 million (+8.8%) 89% Domestic: 4.8 million (+10.6%) 87% Domestic: 8.9 million (+9.5%) 11% International: 0.6 million (+2.2%) 13% International: 1.3 million (+4.2%) At
Slide 14: Airline Participation LTM Jun18
Aeronautical Business | Airline Participation LTM Jun18 Magnicharter 2% (+6.2%) 90% Domestic Other 5% (+9.8%) Passengers VivaAerobus Interjet 28% United Airlines 17% (+16.5%) 3% (+0.1%) (+3.9%) Other 12% (+3.2%) Aeroméxico 26% (+1.6%) Volaris 20% (+2.1%) Aeroméxico 27% Interjet 15% (+0.3%) (+1.3%) O
Slide 15: Aeronautical Revenues 2Q18
Aeronautical Business | Aeronautical Revenues 2Q18 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps.241mm Ps.1,269mm +7.5% +17.6% 76% of Total 19% of Revenue* Aeronautical Ps. 235.7 / PAX Revenue Ps.854 mm Ps.174 mm +23.6% +6.3% 67% of 14% of Aeron
Slide 16: Non-Aeronautical Business
Non - Aeronautical Business 1 Commercial Strategy 2 Diversification Strategy 3 NAR 2Q18 4 Historical NAR Growth 16
Slide 17: Non-Aeronautical Business | Commercial Strategy
Non-Aeronautical Business | Commercial Strategy Optimize Increase of passenger international Develop Add premium Maintain high innovative exposure to brands offerings occupancy rates advertising commercial complemented areas with local offering 33 Commercial Initiatives Implemented in 2Q18 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% 17.4% of of NAR NAR || 287 287 Rooms Rooms 6.4% of 6.1% of NAR NAR | | 134 134 Rooms Rooms Ps.2,252per Avg. Room Rate:Ps.2,226 pernight night(+5.1% yoy) Ps.2,252 per A
Slide 19: Non-Aeronautical Business | 2Q18
Non-Aeronautical Business | 2Q18 Non- Commercial Diversification Complementary Activities Activities Activities Aeronautical Revenues Ps.142 mm Ps.401mm +10.1% +11.3% 24% of Total Rev.* 35% of NAR Ps. 74.4 / PAX Ps.193 mm Ps.66 mm +11.8% +12.3% 49% of NAR 16% of NAR * Total Revenues excluding Constr
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 Jun1
Slide 21: Financial Results
Financial Results 1 2Q18 Highlights 2 Cost & Efficiency 3 Balance Sheet 4 Profitability Indicators 5 Value Distribution 21
Slide 22: Financial Results | 2Q18 Highlights
Financial Results | 2Q18 Highlights Cost of Services and Consolidated Net Revenues* Adjusted EBITDA** G&A Income Ps. 370 mm Ps. 709 mm -7.9% +39.2% Ps. 68.7 / PAX (-16%) Ps. 131.8 / PAX (+27.1%) Ps. 1,670mm Ps. 1,178 mm +16% +25.7% Ps. 310.1 / PAX (+5.9%) Ps. 218.7 / PAX (+14.7%) Aeronautical +17.6%
Slide 23: Financial Results | Cost & Efficiency
Financial Results | Cost & Efficiency CAGR 2011 - LTM Jun18 Adj. EBITDA / PAX AR+NAR / PAX² Total Operating Costs and Expenses/ PAX 10.1% Costs and expenses control has contributed to EBITDA 5.6% growth -0.5% 2011 2012 2013 2014 2015 2016 2017 LTM Jun18 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 4,610 1,624 0.9 0.8 0.7 0.6 0.5 0.5 2,986 2012 2013 2014 2015 2016 2017 LTM Total Debt Cash Net Debt Jun18 Debt Profile Capital Structure Evolution Total Debt | Shareholders’ Equity (Bo
Slide 25: Financial Results | Profitability Indicators
Financial Results | Profitability Indicators 40.0 ROA / ROE 36.3 35.0 Percentage CAGR 2011 - LTM Jun18 29.6 30.0 • ROA +15.3% 28.0 • ROE +20.0% 25.0 • EPS +22.6% 20.8 18.8 18.0 16.8 20.0 15.1 15.0 12.8 13.8 10.1 10.9 9.9 10.0 8.2 8.3 6.6 5.0 - 2011 2012 2013 2014 2015 2016 2017 LTM Jun18 Earnings pe
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 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.615 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 & Remodeling
MDP & Maximum Rates |Expansion & Remodeling of Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Total PAX mm 3,832 m2 10,398 m2* 1st phase in August, Ps.366 mm Terminal building, m2 +171% 2018 and fully 0.5 1.3, +160% Commercial spaces, m2 +116% completed in 1Q 20
Slide 33: Chihuahua Airport Expansion & Remodeling
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% 4Q 2018** 0.9 1.6, +78% Commercial spaces, m2 +30% * Net surface after remodeling and expansion 33 ** Ex
Slide 34: Monterrey Airport Regional Boarding Area
MDP & Maximum Rates |Expansion & Remodeling of 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% August 2018** 2.3 3.2, +39% Commercial spaces, m2 +12% * Net surface after remodelin
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 Recovery 99.
Slide 36: Outlook and Industry
Outlook and Industry 1 Industry Trends 2 Airline Fleets 36
Slide 37: 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 38: Outlook and Industry | Airline Fleets
Outlook and Industry | Airline Fleets Historical Airline Fleets and Available Seats Airplanes 2013 2014 2015 2016 2017 2Q18 133 131 132 124 125 117 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 18,316 16,723 12,282 12,574 12,542 500 500 500 14,944
Slide 39: 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 39
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