Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q4 2019 Earnings Presentation
41 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Oct 1, 2021
Slide 1: Fourth Quarter 2019 Results
FOURTH 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
ABOUT T HE COM P A NY 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 23 million committed to providing Part of the main index of the BMV passengers in 2019. aeronautical, commercial and real (IPC) state
Slide 4: Agenda
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 4Q19 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 2012-2019 PAX Revenues¹ 9.1% 15.1% positive trends 10,00 23.2 Adjusted EBITDA 20.5% 24.0 21.6 22.0 8,000 19.7 7,572 through 18.8 20.0 6,766 16.9 24% 18.0 5,803 6,000 14.
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. $55.8 / USD Bn. $3 Note: As of December 31, 2019 ¹ Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Operaciones de Infraest
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 4Q19 11
Slide 12: Connectivity & New Routes 2019
New Domestic Routes New International Routes Top Routes* 16 3 5 4 MTY – MEX (+4%) 01 MTY – CUN (+8%) 02 MTY – GDL (-3%) 03 7 3 3 5 OTROS CUL – TIJ (+9%) *Based on number of seats offered during 2019 CUU – MEX (+12%) 04 05 +46 +7.4% Total New Terminal +7.1% Seats Routes added Passengers Aeronautical
Slide 13: Passenger Traffic
Aeronautical Business 4Q19 Passenger TOTAL PAX: 6.0 MILLION (+7.6%) 88% Domestic: 5.3 million (+7.3%) 12% International: 0.7 million (+9.6%) Traffic 2019 TOTAL PAX: 23.2 MILLION (+7.4%) 88% Domestic: 20.4 million (+7.4%) 12% International: 2.8 million (+7.9%) PASSENGER SHARE 2019 PASSENGER GROWTH by
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 2019 vs 2018 Ameri can Ma gni charter Ai rl ines 2% 2% (+5.7%) Other (+5.5%) Other 11% 4% (+0.1%) (-7.6%) Am
Slide 15: Aeronautical Revenues 4Q19
Aeronautical Business Aeronautical Ps.1,442mm +10% Revenues 4Q19 75% of Total Revenue* Ps. 242.3 / PAX * Total Revenues excluding Construction Revenues Domestic Passenger Charges International Passenger Charges Airport Services Ps.955mm Ps.290mm Ps.197mm +9.3% +11.1% +11.7% 66% of 20% of 14% of Aero
Slide 16: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Non-Aeronautical Revenues 4Q19 Historical NAR Growth 16
Slide 17: Commercial Strategy
Non-Aeronautical Business Commercial Strategy 24 COMMERCIAL INITIATIVES IMPLEMENTED IN 4Q19 CUL, SLP & ZCL Car rental 7 ACA, CUL, MZT & SLP Bank Services 5 CUU, CUL, MZT, SLP & ZIH Restaurants 5 CUL, MTY & ZCL Retailer 5 ACA & MTY Passenger Services 2 Increase of Optimize international passenger Dev
Slide 18: Diversification Strategy
T2 NH Collection Hilton Garden Inn Non-Aeronautical Business Diversification Strategy 14.1% of NAR | 287 Rooms Avg. Room Rate: Ps.2,366 per night 5.1% of NAR | 134 Rooms Avg. Room Rate: Ps.2,193 per night Occupancy Rate: 88.1% Occupancy Rate: 76.4% EBITDA Margin 44.9% EBITDA Margin 38.9% OMA Carga M
Slide 19: Non-Aeronautical Revenues 4Q19
Non-Aeronautical Business Non- Ps.473mm Aeronautical +9.8% Revenues 4Q19 25% of Total Rev.* Ps. 79.5 / PAX * Total Revenues excluding Construction Revenues Commercial Activities Diversification Activities Complementary Activities Ps.240mm Ps.158mm Ps.75mm +10.2% +7% +15% 51% of 33% of 16% of Non-aer
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 - 2019 2, 00 0 • PAX ¹ +9.1% • NAR +14.9% 79 +5% 1,8 00 4 40 • NAR/PAX +5.3% 75 16% 1,6 00 2 74 16% 39 0 1,4 00 71 16% 340 1,2 00 66 16% 34%
Slide 21: Financial Results
Financial Results Highlights 4Q19 Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 21
Slide 22: Highlights 4Q19
Financial Results Highlights Consolidated Net Income 4Q19 Ps. 761mm -7.1% Ps. 127.9 / PAX (-13.7%) * Total Revenues excluding Construction Revenues Revenues* Cost of Services and G&A Adjusted EBITDA** Ps. 1,915mm Ps. 384mm Ps. 1,402mm +9.9% -3.6% +15.2% Ps. 321.8 / PAX (+2.2%) Ps. 64.5 / PAX (-10.4%
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 CAGR • Seek operational leverage 2012 - 2019 • Energy consumption 220 .0 • Development of a culture of savings Cost of 20
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 4,544 3,430 0.5 0.5 0.3 0.3 1 1,114 Total Debt Cash Net Debt 2013 2014 2015 2016 2017 2018 2019 Debt Profile* Capital Structure Evolution Total Debt | Shareholders’ Equity (Book
Slide 25: Balance Sheet: ROA, ROE and Earnings Per Share
Return On Assets (ROA) / Return On Equity (ROE) 40.0 CAGR 2012 - 2019 • ROA +12.5% 33.6 32.6 • ROE +14.4% 35.0 29.6 • EPS +21.9% 30.0 28.1 25.0 20.8 20.0 18.8 18.4 18.7 16.8 15.1 1 5.0 12.8 13.9 10.9 9.9 1 0.0 8.2 8.3 5.0 - 2012 2013 2014 2015 2016 2017 2018 2019 Financial Results Earnings Per Share
Slide 26: Value Distribution
Financial Results Value Distribution Dividend or Capital Reimbursement (million pesos)* 1,600 1,600 1,600 1,400 1,200 1,200 1,200 8.6 9.0 225 Dividend Yield** and Payout Ratio 8.0 6.9 Percentage Percentage 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.5,999mm pesos of Dec. 31, 2019 2,50 100% Committed Actual / Expected 90 % MDP & Maximum Rates 2,00 80 % 1,748 Investments 1,677 1,575 70 % 1,284 1,377 1,276 1,264 1, 5 00 60 % 50 % 2016-2020 784
Slide 29: Investments 2016-2020: Most Important Projects
MDP & Maximum Rates Total Committed Investment Investments Ps.5,999mm 2016-2020 pesos of Dec. 31, 2019 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 - Monterrey Airport Project
MDP & Maximum Rates Terminal Expansions: Terminal A - Monterrey Airport Project Terminal C 2020 - Currently Terminal A Terminal B Terminal A: 5.3 CAPACITY Terminal B: 3.2 (million passengers) Total Area 61,250 m2 Terminal C: 3.3 Total: 11.8 30
Slide 31: Monterrey Terminal A: 1st Phase
MDP & Maximum Rates Terminal A - Monterrey Airport Project 1st phase Expansion of the public and check-in areas of Terminal A and Construction of Wing #1 Terminal C Wing #1 Start of operations: late 2022 Terminal A TERMINAL LAYOUT Public Area of TA Terminal B CAPACITY TC (million passengers) TC TA T
Slide 32: Monterrey Terminal A: 2nd Phase
MDP & Maximum Rates Terminal A - Monterrey Airport Project 2nd phase Construction of Wing #2 and and Expansion of Both Public and Restricted Areas Wing #1 Wing #2 Start of operations: late 2024 General Terminal A Espansion of Terminal A TERMINAL LAYOUT Terminal B TA Terminal A: 13.3 93,625 m2 CAPACI
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 +187% AIRPORT CAPACITY START OF OPERATIONS 0.3mm PAX 0.9mm PAX | +200% March 2020** * New terminal net surface ** Expected 33
Slide 34: 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 +25% AIRPORT CAPACITY START OF OPERATIONS 0.8mm PAX 1.1mm PAX +38% Fourth Quarter of 2020** * New terminal net surface ** Expected 34
Slide 35: Terminal Expansions: Chihuahua
MDP & Maximum Rates Terminal Expansions CHIHUAHUA INVESTMENT TOTAL AREA Ps. 318 mm 7,951 m2 12,896 m2* Terminal building, m2 +62% | Commercial spaces, m2 +80% AIRPORT CAPACITY START OF OPERATIONS 0.9mm PAX 1.6mm PAX +78% Inaugurated in September 2019 35 * New terminal net surface
Slide 36: New Terminals: San Luis Potosí
MDP & Maximum Rates New Terminals TOTAL AREA SAN LUIS POTOSÍ Ps. 400 mm INVESTMENT 3,832 m2 11.042 m2* Terminal building, m2 +188% | Commercial spaces, m2 AIRPORT +196% CAPACITY START OF OPERATIONS 0.5mm PAX 1.4mm PAX | +180% Inaugurated in August 2019 36 * New terminal net surface
Slide 37: Visibility on Aeronautical Revenues: Maximum Rates
MDP & Maximum Rates Visibility on Maximum Aeronautical Rates Revenues Through 2020 MT Recovery Maximum Tariffs 2019 (2) 99.0% 97.8% 94.5% WEIGHT, AVG (1) Ps. $243 2017 2018 2019 The maximum rate for each succeeding year through 2020 will be adjusted by inflation minus an efficiency factor of 0.70% 1
Slide 38: Outlook and Industry
Outlook and Industry Industry Trends Airline Fleets 38
Slide 39: Industry Trends
Outlook and Industry Industry Trends 2.4 2.7 4.8% 4.5% 4.6% 3.4% 2.4% 1.0 2.0% 0.5 0.5 0.4 Flights per capita per year % Passenger Traffic CAGR Argentina Brazil Mexico Chile Canada United States United States Canada Russia Mexico Central South America America Air Industry Projected has Low Penetrati
Slide 40: Airline Fleets and Available Seats
Historical Airline Outlook and Industry Airline Fleets and Fleets Available Seats Airplanes 133 131 130 2015 2016 2017 2018 2019 125 125 84 84 81 78 77 70 69 71 57 56 31 36 21 21 24 14 10 11 11 8 Available Seats* 6.7 0.7 18.0 11.9 11.9 14.6 17.8 17.4 10.7 13.8 5.8 0.6 0.6 16.7 8.7 12.2 12.5 0.5 7.9
Slide 41: 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 41
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