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 2017 Earnings Presentation
42 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Jul 20, 2017
Slide 1: OMA announces Second Quarter 2017 Operational and Financial Results
OMA announces Second Quarter 2017 Operational and Financial Results Monterrey, Mexico, July 20, 2017 — Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated results for the second quarter 2017.
Slide 2: Reference notes and exchange rates
___________ Unless otherwise stated, all references are to the second quarter of 2017 (2Q17), and all percentage changes are with respect to the same period of the prior year. The exchange rates used to convert foreign currency amounts were Ps. 18.3207 as of June 30, 2016, Ps. 20.6640 as of December
Slide 3: Investor and Media Relations contacts
Chief Financial Officer: Investor Relations: Media Relations: Viesaly Tomes Ruiz Emmanuel Camacho Paul RiveroZavala Pola Fernandez +52 (8) 8625 4300 +52 (1) 8625 4308 +522) 8525 4334, +452 (62) 8625 4300 wtorres@oma 2er0 ecamacho@oma.2ero | piyssoGDoma aa pfernandes@ oma 2er0 Laury Franco Casilo__ I
Slide 4: The principal results of the second quarter include
The principal results of the second quarter include: §
Slide 5: 2Q17 Operating Results
2Q17 Operating Results Operations, Passengers, and Cargo Total available seats increased 4.4% to 6,508,664 seats, as airlines continue to optimize their fleets. The total number of flight operations (takeoffs and landings) decreased 6.2% to 83,342 operations. Domestic flight operations decreased 6.7
Slide 6: Total passenger traffic increased 8.3%
Total passenger traffic increased 8.3% (+377,446 passengers). Of total passenger traffic, 88.4% was domestic, and 11.6% was international. Commercial aviation accounted for 98.4% of passenger traffic. Monterrey generated 50.0% of passenger traffic, Culiacán 9.5%, and Chihuahua 7.3%. Domestic passeng
Slide 7: International passenger traffic
International passenger traffic increased 4.9%, and eleven airports recorded increases in international traffic. The most important increases were: Monterrey (+3.3%; +10,161 passengers), as a result of traffic on its Detroit, Chicago, and Atlanta routes; Zacatecas (+18.7%; +5,483), with increased tr
Slide 8: Commercial Operations
Commercial Operations OMA implements its commercial strategy through continuous improvement in the services offerings in its airports. This strategy resulted in the opening of 16 commercial initiatives in 2Q17, including financial services, communication, retail stores, and hotel promotion. The comm
Slide 9: Hotel Services
Hotel Services § The NH Collection Terminal 2 Hotel had an 87.5% occupancy rate and a 5.1% increase in the average room rate to Ps. 2,226 per night. Revenues increased 13.1% to Ps. 63 million. § The Hilton Garden Inn had a 73.5% occupancy rate, with an average room rate of Ps. 2,023, up 3.0%. Revenu
Slide 10: Non-aeronautical revenues per passenger
Non-aeronautical revenues per passenger decreased 1.4% to Ps. 73.3. Non-aeronautical revenues per passenger, excluding diversification activities, were Ps. 47.0.
Slide 11: Commercial and diversification revenues table
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Slide 12: Commercial activities contributed an incremental increase
Commercial activities contributed an incremental Ps. 3 million (+2.0%). The line items that had the largest variations were: § Revenue from retailers (+12.2%; +Ps. 3 million), as a result of increased participation revenues from the stores that opened in 2016, the increase in passenger traffic, and
Slide 13: OMA
OMA
Slide 14: Major maintenance provision and costs
The major maintenance provision was a charge of Ps. 74 million in 2Q17, a decrease of 7.8%, resulting from a reduction in the estimated future levels of the National Producer Price Index (INPP) applied to the cost of projects. The balance of the maintenance provision as of June 30, 2017 was Ps. 779
Slide 15: OMA
OMA
Slide 16: Adjusted EBITDA and Operating Income
Adjusted EBITDA and Operating Income As a result of the Company’s continuing initiatives to increase revenues and control costs and expenses, Adjusted EBITDA increased 16.0% to Ps. 936 million. The Adjusted EBITDA margin rose 2.57 percentage points to 65.1%. (See Notes to the Financial Information f
Slide 17: Consolidated Net Income and EBITDA reconciliation
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Slide 18: Financing Expense
Financing Expense Financing expense increased by Ps. 58 million to Ps. 90 million in 2Q17. The increase was principally the result of the exchange loss in 2Q17 from the appreciation of the peso against the U.S. dollar, which affected the valuation of cash holdings denominated in U.S. dollars.
Slide 19: Net income and EPS
20316 6M36_ 6 May 445509 509,500 144 «ag, 92,005 Net Margin 96 322% 233% 332% 37.8% Netincome of Non-Controlling interest (se) 2a ona. G7) sam ona. Netincome of Controlling Interest aero: so7268 335 89,638 927,904 32 EPS" (Ps) 234 229000 203 238 any EPADS= (USS) 2.50 oy 8 og2 305 eS “Bases on wagnte
Slide 20: MDP, Strategic Investment, and Quality Improvement Expenditures
MDP, Strategic Investment, and Quality Improvement Expenditures OMA maintains its firm commitment to provide services of the highest quality for its passengers and airline clients in all thirteen airports. As a result, we are constantly undertaking maintenance projects, development and optimization
Slide 21: Debt
Debt As of June 30, 2017, total debt was Ps. 4,643 million and net debt was Ps. 2,758 million. The ratio of net debt to Adjusted EBITDA was 0.76. Of total debt, 97% was denominated in Mexican pesos, and 3% in U.S. dollars. _________________ 3 The amounts for MDP and strategic investments include wor
Slide 22: OMA
OMA
Slide 23: OMA
OMA
Slide 24: Conference call and Material and Subsequent Events
OMA (NASDAQ: OMAB; BMV: OMA) will hold its 2Q17 earnings conference call on July 24, 2017 at 11 am Eastern time, 10 am Mexico City time. The conference call is accessible by calling 1-877-741-4240 toll-free from the U.S. or 1-719-325-4762 from outside the U.S. The conference ID is 6796691 . The conf
Slide 25: Annex Table
Annex Table 1
Slide 26: Passenger Traffic by airport
Slide 27: Annex Table
Annex Table 2
Slide 28: Statement of financial position
Assets Current Asst ‘cath and Cath Equivalents sgaheag—300g792 885774 6) @7> ‘Trade Accounte Receivable Net 78,752 7aya30 56284 GB) GR) ‘Trade Accounte Recevable rom Related Parties . 46.032 oe na. wea Recoverable Taxes 43099 04,304 62.083 29 Gow) Advancesta Contractors rT 399,486 cna aS 378 ‘Other
Slide 29: Annex Table
Annex Table 3
Slide 30: Income statement
‘Aeronutical Revenues gs4628 3078953 23.2 3785466 sonseng | B7 [NonsAmrennutical Revenues eS en eronauticalRevenves +Non-Acronautcal Revenues 3293878 3438.9 kg 9849 SERS 3S ‘Gonstruction Revenues BEES RO BED 208 E ae SEBATEE a TER, “Fatal Revenues Sinni7ezhyagan8 399 Aa86,595 aas7.967 362 Operating
Slide 31: Annex Table
Annex Table 4
Slide 32: Statement of cash flows
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Slide 33: Annex Table
Annex Table 5
Slide 34: Statement of changes in stockholders' equity
'upo Aeroportuario del Centro Norte, SA.B.de Unauditedstatementof changesin stockholders Equity sof tune 0.2015 Thousand Pesos dational share Nom Total ‘numberof Capitalstock Paidin Retained Repurchase Labor Contoing Stockholders ‘Shares_Nominal__capital_Eamings Reserve _Obligatons_interest__Equty B
Slide 35: Annex Table
Annex Table 6
Slide 36: Unaudited Operating Results by Airport
Slide 37: Analysts covering OMA
Annex Table 7 In accordance with the requirements of the Mexican Stock Exchange, the analysts covering OMA are:
Slide 38: Analyst coverage list
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Slide 39: Notes to the Financial Information
Notes to the Financial Information Financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), and presented in accordance with IAS 34 “Interim Financial Reporting.” In December 2016, OMA elected early adoption of the amendments established by Internati
Slide 40: Notes to the Financial Information (continued)
maximum rates, while the operational aspects are assessed as a non-regulated service charge. In accordance with the Civil Aviation Law and the regulations issued by the DGAC, the primary responsibility for damages and losses resulting from checked baggage lies with the airline. Notwithstanding the f
Slide 41: Notes: Master Development Plan and Maximum Rate System
estimates of the disbursements it needs to make. The use of the provision corresponds to the outflows made for the conservation of these operational assets. Master Development Plan (MDP): The investment plan agreed to with the government every five years, under the terms of the concession agreement.
Slide 42: Forward-looking statements
This report 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 may be
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