Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Central North Airport Group — Q2 2015 Earnings Presentation
30 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Jul 22, 2015
Slide 1: OMA Announces Second Quarter 2015 Operating and Financial Results
OMA Announces Second Quarter 2015 Operating and Financial Results Monterrey, Mexico, July 22, 2015 – Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), reported its unaudited, consolidated results for the second quarter of 2015 today
Slide 2: Second quarter 2015 principal results
§ Total terminal passenger traffic increased 16.6% to 4.2 million in 2Q15, and all 13 airports recorded passenger traffic growth. Domestic traffic increased 15.6%; international traffic increased 23.6%. Interjet, Volaris, and Grupo Aeroméxico contributed the most to traffic growth, and accounted for
Slide 3: Investor relations contacts
» José Luis Guerrero Cortés = > Daniel Wilson OMA, CFO Zemi Communications +52.81.8625.4300 ext. 308 +1.212,689.9560 ext. 264 jlguerrero @oma.aero dbmwilson@zemi.com
Slide 4: Total passenger traffic increased 16.6%
Total passenger traffic increased 16.6% (+592,672 passengers). All thirteen airports recorded growth, and the most important increases in Monterrey (+23.0%; +400,152), Chihuahua (+15.0%; +35,249), Tampico (+19.0%; +30,675), San Luis Potosí (+24.8%; +22,040), Culiacán (+6.6%; +21,789), Acapulco (+14.
Slide 5: International passenger traffic
International passenger traffic increased 23.6%. Seven airports increased international traffic. Monterrey (+32.9%; +81,259 passengers) had the largest increase, as a result of traffic growth on its Houston, Miami, Las Vegas, New York, San Antonio, Los Angeles, and Chicago routes. During the quarter
Slide 6: NH Terminal Hotel Operations
NH Terminal 2 Hotel Operations The operation of the NH T2 hotel in the Mexico City International Airport produced solid results. Revenues rose 6.4%, to Ps. 52 million, principally as a result of an 8% increase in the average room rate, which reached Ps. 1,910. The occupancy rate was 78.5%.
Slide 7: Aeronautical revenues
Monterrey contributed 50.1% of aeronautical revenues, Culiacán 8.6%, and Chihuahua 6.4%. Aeronautical revenue per passenger was Ps. 180.1.
Slide 8: Non-aeronautical revenues table
(Ps. Thousands) 2014 2015 = %Var em14 6M15—% Var Commercial Activities: Parking 34,606 45,186 30.6 67,684 85,814 26.8 Advertising 17,894 25,534 427 35,759 47,490 328 Retail 15,709 19,101 21.6 31,594 37,718 19.4 Restaurants 12,933 16,779 29.7 25,578 31,931 24.8 Car Rentals 11,734 14,592 24.4 23,127 2
Slide 9: Commercial activities contributed
Commercial activities contributed an additional Ps. 33 million (+31.3%). The line items that contributed most to growth were: · Parking revenues (+30.6%; +Ps.11 million), principally as a result of higher volumes and an increase in rates. · Advertising revenues (+42.7%; +Ps.8 million), as a result o
Slide 10: Costs and Operating Expenses
Costs and Operating Expenses The total cost of airport services and general and administrative expenses , which exclude those related to the hotel, increased 6.0%, demonstrating OMA’s efforts to realize savings and control costs and expenses. The most significant variations were: · Utility payments
Slide 11: Maintenance provision and other costs
The maintenance provision increased by Ps. 38 million as a result of an increase in the estimated requirements for major maintenance in the MDPs for the thirteen airports. The airport concession tax increased Ps. 11 million because of the growth in revenues. The technical assistance fee increased Ps
Slide 12: Adjusted EBITDA and Operating Income
Adjusted EBITDA and Operating Income Adjusted EBITDA increased 29.1% to Ps. 590 million in 2Q15, as a result of the Company’s initiatives to increase revenues and control costs. The Adjusted EBITDA margin rose 375 basis points to 58.2%. (See Notes to the Financial Information for additional discussi
Slide 13: Financing Expense
Financing Expense Financing expense was Ps. 61 million in 2Q15. The increase compared to 2Q14 was principally the result of a higher level of debt.
Slide 14: Taxes
Taxes Taxes were Ps. 114 million. Cash tax payments were Ps. 97 million, an increase of 29.0% as a result of an increase in the taxable base. Deferred taxes were Ps. 17 million. The effective tax rate was 29.2%.
Slide 15: MDP and Strategic Investment Expenditures
MDP and Strategic Investment Expenditures Total investment expenditures were Ps. 195 million including MDP projects and strategic investments. Expenditures under the MDP included improvements to concessioned assets (Ps. 84 million), various smaller accounts (Ps. 3 million), and major maintenance (Ps
Slide 16: Airport Project Status
Airport Project Status Culiacan Runway rehabiltation Smied Zihuatanejo Expansion and remodeling of terrrinal building Started — Expansion and remodeling of emergency services — building Monterrey Construction of the Hilton Garden Inn ih process Reconfiguration, closing of spaces, partial demolition
Slide 17: Derivative Financial Instruments and Cash Flow Statement
Derivative Financial Instruments As of the date of this report, OMA has no derivatives exposure. Cash Flow Statement For the first six months of 2015, operating activities generated cash of Ps. 961 million, an increase of 59.7% compared to the same period of 2014. The increase was principally the re
Slide 18: Passenger Traffic by airport
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Passenger Traffic (Terminal Passengers - Excludes Transit Passengers) Total Passengers 2014 2015 % Var emg emis % Var ‘Acapulco 149,346 171,048 145 313,847 370,287 18.0 Ciudad Juarez 185,774 206,833 13 357,169 401,475 12.4 Culiacan 329,979 351,768
Slide 19: Domestic and international passengers by airport
‘San Luis Potosi 61,693 78,619 27.4 110,483 148,621 34.5 Tampico 149,689 180,410 20.5 282,809 343,353 21.4 Torreon 120,527 121,711 1.0 230,925 227,817 (1.3) Zacatecas 51,301 52,034 14 90,892 92,973 23 Zihuatanejo 76,160 80,631 59 146,270 164,722 12.6 Total 3,128,162 3,614,748 15.6 5,805,442 6,755,38
Slide 20: Unaudited Consolidated Balance Sheet
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Consolidated Balance Sheet (Thousands of Pesos) AsofJun.30, AsofDec.31, As of Jun. 30, Var %Var 2014 2014 2015 Juntsijunt4 JuntsiDect4 ‘Assets Curent Assets ‘Cash and Cash Equivalents 4,496,597 2,808,149 2,031,512 (64.8) er7) Trade Accou
Slide 21: Balance sheet liabilities and equity
‘Long-Term Debt 5,971,917 4,877,325 ‘Guarantee Deposits 46,886 100,941 Employee Benefits 88,404 94,313, Major Maintenance Provsion 411,796 403,060 123 ‘Common Stock 4,482,696 1,491,023 Adgitional paid-in capital 29,786 29,786 Retained Eamings 3,759,319 4,312,686 ‘Share Repurchase Resene 280,271, 241
Slide 22: Unaudited Consolidated Statement of Income
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Consolidated Statement of Income (Thousands of Pesos) 2014 2015 %Var om14 6M15__%Var Revenues Aeronautical Revenues 637,534 751,445 18 1,195,724 1,426,783 193 Non-Aeronautical Revenues 202,516 263,380 30.1 402,503 502,393 4.8 ‘Aeronautic
Slide 23: Income statement: financing, taxes and net income
Interest (Expense) (64,231) (77,030) 42.0 (82,678) (175,988) 112.9 Exchange Gain (Loss) - Net (244) (3.815) 1,463.9 (1,066) (11,467) 975.4 Total Financing (Expense) Income (39,044) (60,513) 55.0 (53,877) (148,722) 176.0 Income before Taxes 322,777 391,008 = 214 618,287 737,923 19.3, Income Tax 108,7
Slide 24: Unaudited Consolidated Cash Flow Statement
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Consolidated Cash Flow Statement (Thousands of Pesos) As of June 30, 2014 2015 %Var. Operating Activities Consolidated Net Income 471,913, 534,972 BA income Tax 146,374 202,951 387 Doubtful Accounts Provision (623) 7m na tems in Results
Slide 25: Cash flow statement (continued)
Major Maintenance Provision Other Long Term Liabilities Net Flow from Operating Activities Investment Activities Land, Building, Machinery and Equipment Acquisition Investment in Airport Concessions Other Assets Charge for Sale of Machinery and Equipment Interest Income Net Flow from Investing Activ
Slide 26: Statement of Changes in Stockholders' Equity 2014
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Statement of Changes in Stockholders’ Equity As of June 30, 2014 (Thousand Pesos) Additional Share Non- Total Number of Capitalstock Paid-in Retained Repurchase Labor Controlling Stockholder’s Shares Nominal Capital___Earnings _ Reserve
Slide 27: Statement of Changes in Stockholders' Equity 2015
Balance as of December 31, 2014 Capital Reimbursement Reissuance (Repurchase) of Shares - Net Increase in Non-Controling interest Comprehensive Income (Loss) Balance as of June 30, 2015 ‘SeeNotes to the Financial information Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Statement of
Slide 28: Unaudited Operating Results by Airport
Grupo Aeroportuario del Centro Norte, $.A.B. de C.V. ‘Unaudited Operating Results by Airport ‘Thousand Passengers and Thousand Pesos Monterrey 2014 2015 6M14 6M15 Cutiacén 20142015 6M14—__6M15 Total Passengers 1,740.7 2,140.8 3,157.9 3,932.9 Total Passengers 330.0 351.8 656.5 665.9 Total Revenues 38
Slide 29: Operating results by airport (continued)
Income from Operations 8,062 6,249 19,183, 21,590 Income from Operations 10,308 7,571 14,347 16,979 EBITDA 14,901 18,269 32,862 42,586 EBITDA 15,576 14,970 24,533 30,479 Zihuatanejo} Other six airports Total Passengers 105.9 116.5 27 329.2 Total Passengers 637.2 716.9 1,190.2 1,336.5 Total Revenues
Slide 30: Analyst coverage
Company Actinver Casa de Bolsa Bank of America Memill Lynch Barclays Bank PLC BBVA Bancomer Citigroup Credit Suisse Deutsche Bank Goldman Sachs Grupo Bursatil Mexicano (GBM) Grupo Financiero Interacciones Grupo Financiero Monex HSBC Intercam Casa de Bolsa Invex ital BBA J.P. Morgan Morgan Stanley Sa
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