Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (June 2018)
51 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, June 2018
Slide 1: GAP: Outstanding Flight – Corporate Presentation June 2018
GAP: OUTSTANDING FLIGHT CORPORATE PRESENTATION JUNE 2018 1
Slide 2: GAP in Numbers: 2017
GAP in Numbers: 2017 billion EBITDA; 17.3% airports increase vs 2016 69.9% EBITDA margin destinations billion Net income; 35 airlines 41.1% increase vs 2016 million passengers; 11.4% MXP 1.9 billion increase vs 2016 billion in revenues; 17.2% increase vs 2016 employees Page 2
Slide 3: Our Airports in 2017 & Shareholder Structure
Our Airports in 2017 & Shareholder Structure Shareholder Structure Controladora Mexicana de Aeropuertos (CMA) AENA 66.7% 33.3% Aeropuertos Public Float Mexicanos del Pacífico 15% 85% 12 Mexican airports MBJ Airports Limited 100.0% 74.5% Series BB (AMP): 84,150,000 BOARD members: Series B (Free Float
Slide 4: Largest private Mexican Airport Operator
Largest private Mexican Airport Operator 26.3% 22.7% Mexican % Passenger Passengers Airport growth vs 2017 Groups 2016 AICM 44.5 7.5% 14.3% GAP 36.0 11.8% ASUR 31.1 9.3% 32.6% 4.1% OMA 19.5 3.8% ASA/OTHERS 5.7 7.7% Total Mexico 136.7 8.5% 0.7 pp increase in Mexico’s market share during 2017 Figures
Slide 5: Top Mexican Airports – 2017 passenger traffic
Top Mexican Airports – 2017 passenger traffic +7.5% 50 44.5 45 40 35 GAP Operates 5 of the 10 Most 30 +10.2% Important Airports in Mexico 25 23.6 20 +12.5% +5.5% 15 12.8 9.7 +12.2% 10 7.1 +15.0% +11.1% 4.7 4.4 +10.5% +14.1% +7.6% 5 2.1 1.9 1.9 0 Jose Cancun Guanajuato Culiacan Mexico City Guadalajar
Slide 6: Competitive Advantages: 2017
Competitive Advantages: 2017 TOTAL REVENUES REVENUE BY AIRPORT Others 15% Guadalajara 23% USD 28% Puerto Vallarta 12% Tijuana Los Cabos 13% 16% Montego Bay 77% MXP 16% PASSENGER DISTRIBUTION PASSENGER PROFILE IN OUR AIRPORTS Other 4% International 44% Visiting friends and relatives (VFR) Leisure 25%
Slide 7: Mexican Airport Industry
Mexican Airport Industry Traffic Overview Air traffic grew 8.5% during 2017, for Mexico City Airport a total of 136.7 million passengers; GAP grew 11.7% in 2017 and we are estimating 8.0% for 2018 full-year. This airport continues to grow (7.5% Air travel penetration increased during 2017, for a tot
Slide 8: Jamaican Airport Industry
Jamaican Airport Industry Montego Bay Montego Bay transported 4.2 million passengers during 2017, growing 8.3% vs 2016 The growth was mainly driven by: • Additional hotel capacity at this destination (+21,000 rooms, ∆5%) • Additional seat capacity in U.S. and Europe flights Kingston • 1.6 million pa
Slide 9: Main Drivers for 2018
Main Drivers for 2018 Strong Tourism – In 2017, Mexico was ranked eighth most popular tourism destination in the world. Remittances from the U.S. continue rising, reaching over US$ 26.1 billion during 2017, boosting local purchasing power. Mexican airlines continue expanding fleets with higher capac
Slide 10: Market Risks for 2018
Market Risks for 2018 US Immigration Policy Slowdown in the Mexican could affect international economy driven by NAFTA flights to Mexico. negotiations. International travel Warnings Volatility during the Mexican elections. Oil prices, which affect airlines’ ability to keep competitive pricing. Page
Slide 11: Another Year, Another Record
Another Year, Another Record The average load factor for our Mexican airports has been 78% since 1999, while in CAGR 12-18E: 55.00 2017 it was 81% 11.0% 50.00 50 45.00 40.00 CAGR 99-18E: 4.8% 40 35.00 36 Millions 30.00 Passengers 33 Seats 25.00 28 25 24 23 20.00 22 21 21 20 20 19 19 15.00 18 16 16 1
Slide 12: GAP’s Airports – Looking Ahead
GAP’s Airports – Looking Ahead 54.5M total seats in 2018 81.2% load factor GUADALAJARA TIJUANA Expected to have best year in its history, During 2016, it was the fastest-growing surpassing the 14 million passenger mark for airport within the top 100 airports of the the very first time. Americas, and
Slide 13: GAP’s Airports – Looking Ahead
GAP’s Airports – Looking Ahead LOS CABOS & PUERTO VALLARTA MONTEGO BAY 2.5K and 3.5K additional hotel rooms, Montego Bay Airport surpassed the 4 million respectively, will be added during 2018, passenger mark for the first time during 2017 and consolidating their position as the strongest is expecte
Slide 14: CBX: Key driver for Tijuana Airport
CBX: Key driver for Tijuana Airport The number of seats offered to/from beach destinations* is expected to increase 8.0% during first half of 2018; this is a result of growing tourism from Southern California. Residents of Southern California have benefitted from the airport’s growth; Tijuana’s seat
Slide 15: Strategic Outlook Mexican Airport Industry
Strategic Outlook Mexican Airport Industry
Slide 16: Diversification: Key to Success
Diversification: Key to Success % Passenger Share 2017 Million Growth vs Airport Passengers 2016 2017 Guadalajara 12.8 12.4% Tijuana 7.1 12.2% Los Cabos 4.9 15.6% Puerto Vallarta 4.5 11.3% Montego Bay 4.2 8.3% Guanajuato 2.0 14.3% Hermosillo 1.6 4.3% La Paz 0.8 0.2% Mexicali 0.8 12.3% % Growth Share
Slide 17: Diversification of Carriers
Diversification of Carriers Top 10 Performers Total Passenger Share 2017 by additional seats GAP CONSOLIDATED Others Total Seat Growth: 10.2% Additional % Seat 11% Airline Seats vs Growth vs 2% 3% 2016 2016 34% 3% Volaris 1,885,362 13.0% 3% Interjet 665,400 14.9% 5% VivaAerobus 650,814 19.7% Southwe
Slide 18: Resiliency of Legacy Carriers in a Growing Market
Resiliency of Legacy Carriers in a Growing Market Total seats offered at GAP/ Airline Type 60.0 50.0 40.0 59% MILLIONS 30.0 52% 38% 20.0 10.0 37% 61% 44% 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 E Full Service Low-Cost Regional & Charter Low-Cost Carrier evolution had no negative effect in l
Slide 19: Fleet Strategy
Fleet Strategy Number of Aircraft 140 129 134 118 120 105 100 84 77 79 80 71 60 44 44 40 28 21 22 24 15 20 7 0 Aeromexico Interjet Volaris VivaAerobus 2009 2013 2017 2018E New Seats Expected in Backlog 2019- Onwards 2018 at GAP Wide-Body Narrow-Body* Aeromexico 266,296 6 55 Interjet 1,102,666 40 Vol
Slide 20: Traffic Evolution by airport 5M18
Traffic Evolution by airport 5M18 Airports 2017 17 vs 16 5M18 vs 5M17 Guadalajara 12.8 12.4% 5.7 15.3% Tijuana 7.1 12.2% 3.1 12.1% Los Cabos 4.9 15.6% 2.3 6.9% Puerto Vallarta 4.5 11.3% 2.3 7.0% Montego Bay 4.2 8.3% 1.9 6.6% Guanajuato 2.0 14.3% 0.9 21.7% Hermosillo 1.6 4.3% 0.7 14.1% La Paz 0.8 0.2
Slide 21: Traffic Evolution by airline 5M18
Traffic Evolution by airline 5M18 Load Factor Load Factor Airline Pax 2017 Pax 2018 Change % 2017 2018 Volaris 5,473,065 6,247,299 774,234 14.1% 82.7% 82.8% Aeromexico 2,377,607 2,501,063 123,456 5.2% 76.9% 78.6% Interjet 1,418,481 1,886,194 467,713 33.0% 73.1% 77.4% VivaAerobus 1,198,851 1,643,696
Slide 22: Revenue Development
Revenue Development
Slide 23: Total Revenues
Total Revenues AERO + NON AERO (Million Mexican Pesos) 12,491 11,053 AERONAUTICAL REVENUE 9,432 CAGR 07 -18E: 11.5% NON AERONAUTICAL 7,556 REVENUE CAGR 07 -18E: 15.4% 5,264 4,787 4,374 3,903 3,717 3,491 3,477 3,266 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E Page 23
Slide 24: Revenue Mix
Revenue Mix 90% AERO 80% Revenue Mix NON AERO 81% 80% 79% 79% 78% 77% 76% 75% 70% 75% 75% 74% 74% 60% 50% 40% 30% 26% 26% 25% 25% 25% 20% 24% 23% 22% 21% 21% 20% 19% 10% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E Commercial revenue (Million Mexican Pesos) 3,050 2,573 2,231 1,782
Slide 25: Commercial revenue per passenger
Even on a high-growth passenger environment, ratios keep increasing Commercial revenue per Commercial revenue per passenger passenger MEXICO (MXP) JAMAICA (USD) 6.2 6.0 70 63 6.1 65 60 58 6 55 5.9 55 53 5.9 48 5.8 50 46 5.8 44 45 5.7 39 5.6 40 5.6 35 30 5.5 25 5.4 20 5.3 2011 2012 2013 2014 2015 201
Slide 26: Commercial Revenue per Passenger by Airport
Commercial Revenue per Passenger by Airport 113 Los Cabos 122 105 Montego Bay 115 66 Puerto Vallarta 70 53 Aguascalientes 60 51 Guadalajara 53 51 Guanajuato 58 Tijuana 37 1Q18 1Q17 43 34 Morelia 32 32 Hermosillo 34 30 Manzanillo 25 22 Mexicali 25 21 La Paz 26 18 Los Mochis 17 Page 26
Slide 27: Commercial Revenue Strategies in 2018
Commercial Revenue Strategies in 2018 GAP’s Commercial Added Value Expansion and Remodeling New Layouts and Top Brands Customer Experience Retail, Duty Free and Food and Beverage Top business operators + 1,250 and +1,260 square meters of new commercial development in GDL and Deep understanding of ou
Slide 28: Maximum Tariffs
Maximum Tariffs
Slide 29: Maximum tariff determination
Maximum tariff determination [ (RV - TV) * (1 + DR) ] + CAPEX + OPEX MT = WLU's MT - Maximum Tariff RV – Reference Value TV - Terminal Value DR - Discount Rate WLU - Work Load Units Discount rate, Capex and Opex have a positive correlation with the maximum tariffs. WLU have a negative correlation wi
Slide 30: Time Line – 2020-2024
Time Line – 2020-2024 24 months before a Surveys quality standards 24 months before a Traffic projections & Investment necessities 18 months before a Preparation of the MDP and projections for the MT 12 months before a The MDP project and MT projections will be available for the Operations and Sched
Slide 31: Airport Infrastructure
Airport Infrastructure
Slide 32: Master Development Program
Master Development Program CAPEX 2015 – 2019 (in million of Mexican pesos ) 4% 150.0* 15% Terminal Buildings 800.0* 41% 2,177.5 Apron and airfield 1,527.0 1,644.0 40% Equipment 1,000.0 Environment 461.6 2015 2016 2017 2018E 2019E 2018 and 2019 figures are updated to 2018 and 2019 expected prices. *M
Slide 33: Main projects: Guadalajara
Main projects: Guadalajara Main Terminal remodeling and expansion TOTAL CAPEX: MXP 640 million First and main phase in operation since October 2017 o Extension of 8,800 m2 in two levels o 3 new contact gates with boarding bridges + 1,250 m2 of new o 6 remote boarding gates commercial development
Slide 34: Main projects: Tijuana
Main projects: Tijuana Terminal building remodeling and expansion o TOTAL CAPEX: MXP 850 Million o Expansion of 8,500 sqm, and remodeling of 17,300 m2 o New check-in area with 12 additional counters (in operation since September 2017) o 5 new baggage claim belts, with extended capacity, in substitut
Slide 35: Main projects: Guanajuato
Main projects: Guanajuato Terminal building remodeling and expansion o CAPEX: MXP 170 million o Expansion of 3,000 m2 and renovation of 8,000 m2 o New security control with one additional lane: 4 vs the current 3 (in operation since August 2017) o Tripling boarding lounge capacity o 1 additional gat
Slide 36: Main projects: La Paz
Main projects: La Paz Terminal building remodeling and expansion o CAPEX: MXP 55 million o Extension of 1,100 m2 and renovation of 800 m2 o 70% increase in boarding lounge capacity: 1,200 m2 vs the current 700 m2 o 2 new boarding gates. 6 compared with the existing 4 o Security check point extension
Slide 37: Main projects: Aguascalientes
Main projects: Aguascalientes Terminal building remodeling and expansion o CAPEX: MXP 60 million o Procurement for construction underway o 30% increase in boarding lounge with 2 additional boarding gates o Expanded and completely refurbished security check point: 1 additional lane 270 m2 compare
Slide 38: Main projects: Los Cabos
Main projects: Los Cabos International Terminal building expansion o CAPEX: MXP 530 million o New boarding lounge with 6,500 m2 and 10 remote boarding gates o Three new air bridges. 7 compared with the existing 4 o 25% expansion of immigration point: 2,300 m2 vs the current 1,800; 20 new automatic i
Slide 39: Financial Highlights
Financial Highlights
Slide 40: Financial Results for 1Q18
Financial Results for 1Q18 1Q17 1Q18 % Change Revenues Aeronautical services 2,084,906 2,360,500 13.2% Non-aeronautical services 732,919 749,140 2.2% Sum of aeronautical and non-aeronautical services 2,817,825 3,109,640 10.4% Improvements to concession assets (IFRIC 12) 349,929 298,090 (14.8%) Total
Slide 41: EBITDA Generated in USD
EBITDA Generated in USD (millions of USD): Mexico Jamaica 2017 % in USD Pesos Total Revenue (1) 43 94 137 23% $ 2,594 Total Expenses 8 46 54 31% $ 1,023 EBITDA (2) 35 48 83 20% $ 1,572 (1) Excluding the effects of IFRIC12 (2) 63% corresponds to MBJ and 37% from leasing agreements in our Mexican airp
Slide 42: Outstanding Performance
Outstanding Performance 12,450 8,550 2018E 2018E (1) Excluding IFRIC12 Page 42
Slide 43: EBITDA Strength
EBITDA Strength 69.0% 8,550 69.9% 7,725 69.8% 6,583 71.5% 5,404 70.1% 68.0% 67.2% 3,690 66.5% 3,256 67.3% 64.3% 65.7% 2,939 65.0% 2,597 2,441 2,340 2,246 2,123 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E (Million Mexican Pesos) Page 43
Slide 44: Trend per Pax
Trend per Pax Aero Revenue per PAX Non-Aero Revenue per PAX (Mexican Pesos) (Mexican Pesos) 210 73 203 68 193 65 179 62 158 156 159 54 146 152 51 47 124 132 119 41 38 38 33 28 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018E Co
Slide 45: M&A Activity and Opportunities
M&A Activity and Opportunities Main Drivers to invest: Potential opportunities: 2015 (dismissed): Country - Aerodom (Dominican Republic) Regulatory Framework 2016 (dismissed): - Airplan + Aeropuertos de Oriente (Colombia) Passenger traffic - 4th Round for four airports (Brazil) 2017-2018 (on going):
Slide 46: Key Financial Drivers / Financial Targets
Key Financial Drivers / Financial Targets Maintain healthy financial levels Net debt to EBITDA: below 2.4x Potential expansions leveraged Capital Structure: 50 / 50 Leveraging CAPEX WACC: below 8.0% Compliant debt covenants Interest coverage: above 5x Sustain debt ratings FFO/debt ratio above 40% Im
Slide 47: Total Debt as of March 2018
Total Debt as of March 2018 2018E Total MXP12,883 77% Floating 30% USD Net Debt / (millions) 23% Fixed 70% MXP EBITDA 1.0x Amount Ints Rate Spread Amortization Maturity (millions) Fixed bond “GAP15-2” $1,500 7.08% n/a Bullet Feb-2025 Floating bond “GAP15” $2,200 TIIE 28 0.24% Bullet Feb-2020 Floatin
Slide 48: Debt Ratings
Debt Ratings Standard & Poor’s: mxAAA–National scale Outlook: Stable Issued in May 2018 Downward rating if: Net debt to EBITDA over 3x Interest coverage below 5x FFO/debt ratio below 30% Moody´s: Aaa.mx –National scale A3 –Global scale Outlook: Stable Issued in April 2018 Covenants 2017: Net debt to
Slide 49: Distribution Policy
Distribution Policy - Pay all the excess of cash above a minimum cash balance (two months of OPEX + the debt service) - Dividend payment, or capital reimbursement, will take into account the most efficient fiscal practice 9.0% 6,000 7.9% 5,256 ** 8.0% 7.5% 4,756 5,000 7.0% 6.8% 6.1% 3,889 6.0% 4,000
Slide 50: Guidance 2018
Guidance 2018 Traffic 8% +/- 1% Aeronautical Revenue 12% +/- 1% Non-aeronautical Revenue 16% +/- 1% Total Revenue 13% +/- 1% EBITDA 11% +/- 1% EBITDA margin 69% +/- 1% CAPEX MXP 2.6 billion Page 50
Slide 51: Forward-looking statements disclaimer
This document may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “be
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