Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q2 2019 Earnings Presentation
39 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, July 2019
Slide 1: Second Quarter 2019 Results
SECOND QUARTER 2019 RESULTS Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.
Slide 2: Forward-looking information and 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 ma
Slide 3: About the Company
Our Businesses Who we are Listed in BMV and NASDAQ since 2006 13 Airports in the central-north More than 900 employees region of Mexico, serving 22 million committed to providing Part of the main index of the BMV passengers in LTM June 2019. aeronautical, commercial and real (IPC) state services of
Slide 4: Company Overview, Aeronautical Business, Non-Aeronautical Business
Company Overview Value Proposition | Historical Performance | Shareholder Structure | Board of Directors and Management Team | Operations & Sustainability Aeronautical Business Connectivity & New Routes | Passenger Traffic | Airline Participation | Aeronautical Revenue 2Q19 Non-Aeronautical Business
Slide 5: Company Overview
Company Overview Value Proposition Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability 5
Slide 6: Value Proposition
Company Overview Value Proposition Cost and Constant growth Healthy balance Maximizing value Experienced expenses in Adjusted sheet distribution board of directors efficiency EBITDA and and management margins team High potential Sustained Visibility in Successful Commitment to portfolio of passenger
Slide 7: Historical Performance
Company Overview Historical Performance Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) Sustained CAGR 2012-LTM Jun19 PAX Revenues¹ 8.5% 14.4% 21.6 22.4 positive trends 22.0 Adjusted EBITDA 8,000 19.5% 19.7 7,217 18.8 6,766 20.0 through 16.9 5,803 24% 18.0 6,000 24% 14.7
Slide 8: Shareholder Structure
1.9% 12.6% CONOISA 1 B Shares SETA¹ BB Shares Company Overview Shareholder 85.5% Public Float 2 B Shares Structure Market Capitalization 3 Ps. Bn. $46.2 / USD Bn. $2.4 Note: As of June 30, 2019 ¹ Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Operaciones de Infraestru
Slide 9: Board of Directors & Management
Experienced Management Team (Average time with OMA: 6 years) Ricardo Dueñas *2018 Chief Executive Officer Company Overview Board of Ruffo Pérez Pliego *2018 Chief Financial Officer Adriana Díaz *2018 General Counsel Directors & Héctor Cortés *2001 Chief Commercial Officer Management Enrique Navarro
Slide 10: Operations & Sustainability
Aerodrome & Safety Certifications Quality and Customer Service Social Responsibility Company Overview Operations & Sustainability Sustainability Performance 10
Slide 11: Aeronautical Business
Aeronautical Business Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenue 2Q19 11
Slide 12: Connectivity & New Routes 6M19
New Domestic Routes New International Routes Top Routes* 12 01 2 1 MTY – MEX (+7%) MTY – CUN (+17%) 02 1 1 MTY – GDL (+11%) 03 4 1 CUL – TIJ (+10%) *Based on number of seats offered during 6M19 CUU – MEX (+16%) 04 05 +22 +7.8% Seats +7.6% Total New Terminal Routes added Passengers Aeronautical Busin
Slide 13: Passenger Traffic
Aeronautical Business 2Q19 Passenger TOTAL PAX: 6.0 MILLION (+10.7%) 89% Domestic: 5.3 million (+10.5%) 11% International: 0.7 million (+11.7%) Traffic 6M19 TOTAL PAX: 11.1 MILLION (+7.6%) 87% Domestic: 9.7 million (+7.9%) 13% International: 1.4 million (+5.6%) PASSENGER SHARE PASSENGER GROWTH by ty
Slide 14: Airline Participation
Total 88% 12% Aeronautical Business Airline Participation PAX Domestic Passengers International Passengers Note: Percentages in graphs represent 1) Passenger share by category and 2) % change LTM Jun19 vs LTM Jun18 Ma gni charter Ma gni charter 2% 3% (+15.4%) Other Al a ska (+17.3%) Other 11% 5% Ai
Slide 15: Aeronautical Revenues 2Q19
Aeronautical Business Aeronautical Ps.1,496mm +17.9% Revenues 2Q19 77% of Total Revenue* Ps. 251.1 / PAX * Total Revenues excluding Construction Revenues Domestic Passenger Charges International Passenger Charges Airport Services Ps.1,010mm Ps.294mm Ps.192mm +18.3% +21.8% +10.4% 68% of 20% of 12% of
Slide 16: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Non-Aeronautical Revenues 2Q19 Historical NAR Growth 16
Slide 17: Commercial Strategy
Non-Aeronautical Business Commercial Strategy 16 COMMERCIAL INITIATIVES IMPLEMENTED IN 2Q19 MTY & MZT Bank services 7 TAM, MZT & DGO Hotel Promotion 3 MTY, ZIH & CUU Car rental 3 CUU Restaurant 1 CJS Passenger services 1 ACA Retail 1 Increase of Optimize international passenger Develop brands Mainta
Slide 18: Diversification Strategy
T2 NH Collection Hilton Garden Inn Non-Aeronautical Business Diversification Strategy 13.7% of NAR | 287 Rooms Avg. Room Rate: Ps.2,239 per night 5.7% of NAR | 134 Rooms Avg. Room Rate: Ps.2,226 per night Occupancy Rate: 83.4% Occupancy Rate: 77.9% EBITDA Margin 47.5% EBITDA Margin 43.1% OMA Carga M
Slide 19: Non-Aeronautical Revenues 2Q19
Non-Aeronautical Business Non- Ps.455mm Aeronautical +13.7% Revenues 2Q19 23% of Total Rev.* Ps. 76.4 / PAX * Total Revenues excluding Construction Revenues Commercial Activities Diversification Activities Complementary Activities Ps.231mm Ps.152mm Ps.73mm +19.9% +6.8% +10.6% 51% of 33% of 16% of No
Slide 20: Historical Non-Aeronautical Revenue Growth
Non-Aeronautical Business Historical Non-Aeronautical Revenue Growth NAR – Commercial/PAX NAR – Diversification/PAX NAR – Complementary/PAX NAR PAX 1 CAGR 2012 - LTM Jun19 2 ,0 00 • PAX ¹ +8.5% 1, 80 0 77 4 40 • NAR +14.1% 75 • NAR/PAX +5.1% 1, 60 0 16% 74 16% 39 0 1,40 0 71 16% 34 0 1,20 0 66 16% 3
Slide 21: Financial Results
Financial Results Highlights 2Q19 Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 21
Slide 22: Highlights 2Q19
Financial Results Highlights Consolidated Net Income 2Q19 Ps. 848mm +19.6% Ps. 142.4 / PAX (+8.1%) * Total Revenues excluding Construction Revenues ** Adjusted EBITDA Margin = Adjusted EBITDA / (Aeronautical + Non-Aeronautical Revenues). Adjusted EBITDA = Operating income + Depreciation and Amortiza
Slide 23: Cost & Efficiency
Financial Results Cost & Efficiency Cost and expense control has contributed to EBITDA growth Cost Control Strategy Adj. EBITDA / PAX AR+NAR / PAX Total Op. Costs and Exp./ PAX 1 • Seek operational leverage CAGR • Energy consumption 2012 - LTM Jun19 • Development of a culture of savings Cost of 9.9%
Slide 24: Balance Sheet
Financial Results Balance Sheet Strong Financial Position Low Leverage Ps.Million Net Debt / Adjusted EBITDA 1.0 0.9 0.8 4,562 0.5 0.5 2,608 0.4 0.3 1,954 Total Debt Cash Net Debt 2013 2014 2015 2016 2017 2018 LTM Jun19 Debt Profile* Capital Structure Evolution Total Debt | Shareholders’ Equity (Boo
Slide 25: Return on Assets / Return on Equity and Earnings Per Share
Return On Assets (ROA) / Return On Equity (ROE) 40.0 CAGR 2012 - LTM Jun19 37.0 • ROA +13.5% 33.6 • ROE +16.4% 35.0 29.6 • EPS +21.5% 30.0 28.1 25.0 20.8 19.9 20.0 18.8 18.4 16.8 15.1 15 .0 12.8 13.9 10.9 9.9 10 .0 8.2 8.3 5.0 - 2012 2013 2014 2015 2016 2017 2018 LTM Jun19 Financial Results Earnings
Slide 26: Value Distribution
Financial Results Value Distribution 1,600 1,600 1,600 1,600 Dividend or 1,400 Capital Reimbursement 1,200 1,200 (million pesos)* 8.6 Dividend Yield** and Payout Ratio 9.0 Percentage Percentage 225 8.0 6.9 7.0 17 5 6.0 4.4 4.5 5.0 4.2 3.9 3.9 12 5 4.0 3.0 75 147 2.0 117 113 100 85 75 1 .0 56 25 - 20
Slide 27: MDP & Maximum Rates
MDP & Maximum Rates Investments 2016-2020 New Terminals Maximum Rates 27
Slide 28: Investments 2016-2020
Visibility of capital expenditure Monterrey, 28% requirements through 2020 Total Committed Investment Ps.6,002mm pesos of Dec. 31, 2018 2,50 100% Committed Actual / Expected 90 % MDP & Maximum Rates 2,00 80 % 1,750 Investments 1,678 1,575 1,500 70 % 1,276 1,284 1, 5 00 60 % 1,145 50 % 2016-2020 784
Slide 29: Investments 2016-2020: Committed Investment Breakdown
MDP & Maximum Rates Total Committed Investment Investments Ps.6,002mm 2016-2020 pesos of Dec. 31, 2018 Most Important Projects Other 6% Terminal Expansion • Chihuahua • Monterrey Operational • San Luis Potosí Infrastructre • Ciudad Juárez • Tampico Expansion Terminal 11% Expansion & Refurbishing New
Slide 30: Terminal Expansions: Terminal A and C - Monterrey Airport
MDP & Maximum Rates Terminal Expansions: Terminal A and C - Monterrey Airport CAPACITY CAPACITY (million passengers) (million passengers) Investment* TOTAL AREA TOTAL AREA Ps. 1,115 mm Terminal A: 5.3 Terminal A: 5.3 62,268 m2 69,757 m2 Terminal B: 3.2 Terminal B: 3.2 Terminal C: 3.3 Terminal C: 4.6
Slide 31: Terminal Expansions: Tampico
MDP & Maximum Rates Terminal Expansions INVESTMENT TOTAL AREA Ps. 175 mm 6,833 m2 7,981 m2* TAMPICO Terminal building, m2 +17% | Commercial spaces, m2 +31% AIRPORT CAPACITY START OF OPERATIONS 0.8mm PAX 1.1mm PAX +38% Fourth Quarter of 2020** * New terminal net surface ** Expected 31
Slide 32: Terminal Expansions: Chihuahua
MDP & Maximum Rates Terminal Expansions INVESTMENT TOTAL AREA Ps. 318 mm 7,951 m2 13,074 m2* CHIHUAHUA Terminal building, m2 +64% | Commercial spaces, m2 +30% AIRPORT CAPACITY START OF OPERATIONS 0.9mm PAX 1.6mm PAX +78% September 2019** * New terminal net surface ** Expected 32
Slide 33: New Terminals: Reynosa
MDP & Maximum Rates New Terminals INVESTMENT TOTAL AREA Ps. 325 mm 2,608 m2 7,590 m2* REYNOSA Terminal building, m2 +191% | Commercial spaces, m2 +213% AIRPORT CAPACITY START OF OPERATIONS 0.3mm PAX 0.9mm PAX | +200% December 2019** * New terminal net surface ** Expected 33
Slide 34: New Terminals: San Luis Potosí
MDP & Maximum Rates New Terminals INVESTMENT TOTAL AREA Ps. 366 mm 3,832 m2 7,170 m2* SAN LUIS POTOSÍ Terminal building, m2 +87% | Commercial spaces, m2 +32% AIRPORT CAPACITY START OF OPERATIONS 0.5mm PAX 0.9mm PAX | +80% Fully completed in August 2019 1st phase opened in August, 2018 34 * New t
Slide 35: Visibility on Aeronautical Revenues
MDP & Maximum Rates Visibility on Maximum Aeronautical Rates Revenues Through 2020 MT Recovery Maximum Tariffs 2019 (2) 97.8% 94.5% 93.7% MAXIMUM MINIMUM WEIGHT, AVG (1) Ps. $305 Ps. $197 Ps. $243 2016 2017 2018 ACA SLP 13 AIRPORTS The maximum rate for each succeeding year through 2020 will be adjus
Slide 36: Outlook and Industry
Outlook and Industry Industry Trends Airline Fleets 36
Slide 37: Industry Trends
Outlook and Industry Industry Trends 2.5 2.6 4.8% 4.5% 4.6% 3.4% 2.4% 1.0 2.0% 0.4 0.5 0.5 Flights per capita per year % Passenger Traffic CAGR Argentina Mexico Brazil Chile Canada United States United States Canada Russia Mexico Central South America America Air Industry Projected has Low Penetrati
Slide 38: Historical Airline Fleets and Available Seats
Historical Airline Outlook and Industry Airline Fleets and Fleets Available Seats Airplanes 133 131 130 2015 2016 2017 2018 2Q19 125 122 84 84 78 77 78 70 69 71 57 56 31 30 21 21 24 14 10 11 11 8 Available Seats* 12.2 12.5 13.8 14.0 0.7 18.0 11.9 11.9 17.8 10.7 5.8 5.6 0.6 0.6 16.7 16.8 8.7 9.3 0.5
Slide 39: Investor Relations Contact
Chief Financial Officer Ruffo Pérez Pliego del Castillo rperezpliego@oma.aero +52.81.8625.4300 GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V. Investor Relations Luis Emmanuel Camacho Thierry ecamacho@oma.aero +52.81.8625.4308 39
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