Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q1 2019 Earnings Presentation
38 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, April 2019
Slide 1: First Quarter 2019 Results
FIRST 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 21 million committed to providing Part of the main index of the BMV passengers in LTM Mar 2019. aeronautical, commercial and real (IPC) state services of e
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 1Q19 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 Mar19 PAX Revenues¹ 8.1% 13.8% 21.6 21.8 positive trends 22.0 Adjusted EBITDA 8,000 18.7% 19.7 18.8 6,935 20.0 6,766 16.9 through 18.0 5,803 24% 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. $43.2 / USD Bn. $2.2 Note: As of March 31, 2019 ¹ Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Operaciones de Infraestr
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 1Q19 11
Slide 12: Connectivity & New Routes 1Q19
New Domestic Routes New International Routes Top Routes* 1 MTY – MEX (+17%) 01 02 9 MTY – CUN (+23%) MTY – GDL (+24%) 03 1 CUL – TIJ (+1%) *Based on number of seats offered CUU – MEX (+19%) 02 05 +11 +6.0% +4.3% Total New Seats Terminal Routes added Passengers Aeronautical Business Connectivity & Ne
Slide 13: Passenger Traffic
Aeronautical Business Passenger 1Q19 Traffic TOTAL PAX: 5.1 MILLION (+4.3%) 85% Domestic: 4.4 million (+5.0%) 15% International: 0.7 million (+0.8%) PASSENGER SHARE PASSENGER GROWTH by type of airport (%) YoY 1Q19 Passenger Growth CJS|+13% Border Cities 8% Tourist CUU|+3% 15% TRC | +5% CUL|+3% TRC|+
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 Mar19 vs Mar18 TAR 3% (+3.1%) Uni ted 3% Other Al a ska (-2.6%) Other 13% 4% Ai rl ines 6% Delta 8% (-1.4%)
Slide 15: Aeronautical Revenues 1Q19
Ps.1,323mm Aeronautical Business Aeronautical Revenues 1Q19 +9.9% 76% of Total Revenue* Ps. 258.8 / PAX * Total Revenues excluding Construction Revenues Domestic Passenger Charges International Passenger Charges Airport Services Ps.808mm Ps.330mm Ps.185mm +10% +9.7% +9.8% 61% of 25% of 14% of Aerona
Slide 16: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Non-Aeronautical Revenues 1Q19 Historical NAR Growth 16
Slide 17: Commercial Strategy
Non-Aeronautical Business Commercial Strategy 14 COMMERCIAL INITIATIVES IMPLEMENTED IN 1Q19 ACA, CUU, DGO, TAM y ZIH Bank services 5 CUL y MZT Passenger Services 3 CUU y ZCL Car rental 3 TAM y ACA Hotel Promotion 2 CUU y ZCL Restaurant 1 Increase of Optimize international passenger Develop brands Ma
Slide 18: Diversification Strategy
T2 NH Collection Hilton Garden Inn Non-Aeronautical Business Diversification Strategy 14.9% of NAR | 287 Rooms Avg. Room Rate: Ps.2,363 per night 6.2% of NAR | 134 Rooms Avg. Room Rate: Ps.2,298 per night Occupancy Rate: 86.5% Occupancy Rate: 78.2% EBITDA Margin 46.7% EBITDA Margin 43.9% OMA Carga M
Slide 19: Non-Aeronautical Revenues 1Q19
Non-Aeronautical Business Non- Ps.426mm Aeronautical +13.3% Revenues 1Q19 24% of Total Rev.* Ps. 83.3 / PAX * Total Revenues excluding Construction Revenues Commercial Activities Diversification Activities Complementary Activities Ps.209mm Ps.151mm Ps.67mm +20.1% +9.1% +4.0% 49% of 35% of 16% of Non
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 CAGR 2012-LTM Mar19 2 ,0 00 • PAX +8.1% • NAR1, 80 0 +13.5% 77 4 40 • NAR/PAX +5.0% 75 1, 60 0 74 16% 15% 39 0 1,40 0 71 16% 34 0 1,20 0 66 16% 35% 35%
Slide 21: Financial Results
Financial Results Highlights 1Q19 Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 21
Slide 22: Highlights 1Q19
Financial Results Highlights Consolidated Net Income 1Q19 Ps. 760mm +24.7% Ps. 148.7 / PAX (+19.5%) * Total Revenues excluding Construction Revenues ** Adjusted EBITDA Margin = Adjusted EBITDA / (Aeronautical + Non-Aeronautical Revenues). Adjusted EBITDA = Operating income + Depreciation and Amortiz
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 Mar19 • Development of a culture of savings Cost of 9.5%
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 4,571 3,821 0.5 0.5 0.3 0.2 750 Total Debt Cash Net Debt 2013 2014 2015 2016 2017 2018 LTM Mar19 Debt Profile* Capital Structure Evolution Total Debt | Shareholders’ Equity (Book
Slide 25: Profitability Indicators: ROA, ROE, EPS
Return On Assets (ROA) / Return On Equity (ROE) 40.0 CAGR 2012 - LTM Mar19 • ROA +12.0% 33.6 32.5 • ROE +14.3% 35.0 29.6 • EPS +20.7% 30.0 28.1 25.0 20.8 20.0 18.8 18.4 18.1 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 Mar19 Financial Results Earnings
Slide 26: Value Distribution
Financial Results Value Distribution 1,70 0 1,50 0 1,600 1,600 1,600 Dividend or 1,400 Capital 1,30 0 Reimbursement 1,10 0 1,200 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 1
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: Most Important Projects
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: 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% Third Quarter of 2019 ** * New terminal net surface ** Expected 31
Slide 32: New Terminals: Reynosa
MDP & Maximum Rates New Terminals INVESTMENT TOTAL AREA Ps. 316 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% Fourth Quarter of 2019 ** * New terminal net surface ** Expected 32
Slide 33: 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 3Q 2019** 1st phase opened in August, 2018 33 * New ter
Slide 34: Visibility on Aeronautical Revenues: Maximum Rates
MDP & Maximum Rates Visibility on Maximum Aeronautical Rates Revenues Through 2020 97.8% MT Recovery 94.5% 93.7% 2016 2017 2018 The maximum rate for each succeeding year through 2020 will MAXIMUM MINIMUM WEIGHT, AVG (1) Maximum be adjusted by inflation minus an Tariffs Ps. $305 Ps. $197 Ps. $243 201
Slide 35: Outlook and Industry
Outlook and Industry Industry Trends Airline Fleets 35
Slide 36: 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 37: Airline Fleets and Available Seats
Historical Airline Outlook and Industry Airline Fleets and Fleets Available Seats Airplanes 133 131 130 127 2015 2016 2017 2018 1Q19 125 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 17.6 10.7 5.8 5.6 0.6 0.6 16.7 8.7 9.3 0.5
Slide 38: 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 38
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