Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (January 2017)
56 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, January 2017
Slide 1: Corporate Presentation January 2017
Corporate Presentation January 2017
Slide 2: Unique Value Proposition
Unique Value Proposition Page 2
Slide 3: Shareholder Structure and listings
GAP’s shares are listed on the NYSE under ticker symbol “PAC” and on the Mexican Stock Exchange under ticker symbol “GAP”. Shareholder Structure AENA Controladora Mexicana de 33.3% Aeropuertos (CMA) 66.7% Public Float 85% Aeropuertos Mexicanos del Pacífico 15% Desarrollo de Concesiones Aeroportuaria
Slide 4: Shareholder Structure
Shareholder Structure AMP (Strategic Partner) AENA 33.3% CMA No Voting Power 66.7% Cannot be represented in any shareholders meeting Treasury 35,424,453 6.3% GMexico: Total Shares: 561,000,000 Excess of shares 27,739,520 AMP BB Series BB (AMP): 84,150,000 4.9% 84,150,000 Series B (Free Float): 476,8
Slide 5: A Story of Growth and Success
A Story of Growth and Success •GAP reached maximum passenger traffic • Expansion of the Company: Acquisition of Montego Bay Airport • Opening of the CBX GAP is the second largest private airport operator in the Americas* 2016 Launch of directly operated advertising and VIP lounge 2015 businesses 201
Slide 6: Main private operator in Mexico
Main private operator in Mexico →Serves one-fourth of Mexico’s terminal passengers and more than three-quarters of Jamaica’s terminal passengers. →Diversified geographically and commercially Mexican Airport Total Passengers 16% Groups 2016 AICM 41,710,254 GAP 32,647,361 34% ASUR 28,407,051 OMA 18,76
Slide 7: Passenger Traffic in 2016
GAP operates 5 of the 10 most important airports in Mexico 50.0 Passenger Traffic in 2016 45.0 41.7 40.0 35.0 GAP Airports 30.0 25.0 Other Airport Groups Millions 21.4 20.0 15.0 11.4 9.2 10.0 6.3 4.2 4.1 5.0 1.9 1.7 1.7 0.0 Source: SCT Page 7
Slide 8: GAP grew 18.2% from 2015 to 2016 in Mexican Airports
GAP grew 18.2% from 2015 to 2016 in Mexican Airports 35.00 33.00 32.6 31.00 Ebitda Margin: 29.00 CAGR 99 – 2016: 71% 4.2% 27.6 27.00 Ebitda Margin: Millions 25.00 67% 24.7 23.6 23.00 23.2 22.3 21.00 21.3 20.5 20.2 20.2 19.00 19.1 19.3 17.5 Ebitda Margin: 17.00 16.4 16.1 16.4 65% 16.2 15.00 15.3 1999
Slide 9: Briefing on the Mexican Airport Industry
Briefing on the Mexican Airport Industry Mexico City Airport (Current and New) There are key factors that are increasing the internal Mexico City Airport (growth of 8.5% in 2016, for a total 41.7 demand: million passengers) has reached maximum capacity. • Middle-class is increasing purchasing power.
Slide 10: Mexican Airport Industry
Mexican Airport Industry Where is it headed? According to Tony Tyler, IATA´s CEO “profitability enables airlines to pay down debt, invest in new aircraft and products, and reward shareholders. On a global basis, fares in 2015 are estimated to have fallen 5% compared to 2014 after adjusting for t
Slide 11: Why GAP entered the Jamaican market
Why GAP entered the Jamaican market Montego Bay (Sangster) International Airport Kingston International Airport The airport handles 71% of the total air traffic in The privatization process will continue, and will be Jamaica. reviewed by the newly-elected Government The airport has reported st
Slide 12: Jamaican Airport Industry
Jamaican Airport Industry Where is it headed? Airlines strategy on the island: Traffic has historically been highly correlated with Legacy Carriers will continue to use their HUBs the North American economy, therefore most of as the main gateways to the island. the growth will depend on the econom
Slide 13: MBJ General Overview
MBJ General Overview • Economic growth forecasted at MBJ’s Natural Catchment Area 2.1% for FY2015/16 continues and projection of 2.9% for Montego Falmouth FY2017/18 (GoJ Policy Paper Lucea FY2015/2016) Bay Ocho Rios Negril • Confidence in the tourism sector reflected in additional investments Kingst
Slide 14: Mature and stable market: MBJ grew 4.3%
Mature and stable market: MBJ grew 4.3% from 2015 to 2016 Traffic growth has accelerated over 4.5 the last five years CAGR 03 – 2016: 1.8% 4.0 3.9 Growth rates above Caribbean 3.7 3.6 average 3.4 3.5 3.3 3.3 3.2 3.2 3.2 3.2 3.1 3.2 3.2 Solid and stable tourism market 3.0 3.0 Increased number
Slide 15: Key Players: Volaris, Aeromexico and Interjet
Key Players: Volaris, Aeromexico and Interjet Total Passenger Share 2016 Total Passenger Share 2016 Total Passenger Share 2016 Mexican Airports TOTAL PASSENGER SHARE 2016 GAP International Mexican Airports GAP INTERNATIONAL TAR 1.0% Others 4.8% 10.7%, Others Westjet 1.3% 1.1%, Sunwing Aereocalafia 1
Slide 16: Number of routes served per year
Number of routes served per year Main Routes Share Main Routes in Share 300 in Mexico MBJ Mexico 26% Pearson International 13% 280 Tijuana 8% Atlanta 10% 276 Guadalajara 8% John F Kennedy 9% 268 Los Ángeles 6% 260 Charlotte 8% 259 Monterrey 5% Ft. Lauderdale 7% 251 Others 47% Others 54% 240 220 220
Slide 17: 2015 Commercial Development drivers
2015 Commercial Development drivers Mexican Airports 1,500 1,450 17 1,450 23 22 1,400 26 29 27 1,350 30 MXP Millions 1,300 42 1,250 50 1,184 1,200 1,150 + 22.4% 1,100 1,050 1,000 Page 17
Slide 18: Revenue strategy focus on non-aeronautical development
Beyond traffic creation, revenue strategy focus on non-aeronautical development $120.0 Commercial Revenue per passenger (MXP) $101.7 $100.0 $88.8 $80.0 $63.1 $64.3 $60.0 $54.1 $47.3 $43.1 $38.5 $36.7 $40.0 $36.0 $29.0 $26.6 $24.9 $25.3 $19.3 $20.0 $10.7 $- LOS CABOS PUERTO GUADALAJARA TIJUANA MONTEG
Slide 19: Commercial strategy increased revenue 111% from 2006 to 2015
Commercial strategy has led to an increase of 111% from 2006 to 2015 Commercial revenues per passenger (MXN) at GAP Mexican airports 60.00 CAGR 05-16E $55 8.2% $53 50.00 $46 $48 $44 $37 $36 $39 40.00 $32 30.00 $25 $27 20.00 10.00 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 25.0% 22% 23
Slide 20: GAP International: Commercial revenue per airport in 9M16
GAP International: Commercial revenue per airport in 9M16 LO S CA BO S 101.5 115.3 MO NT EG O BAY 85.6 105.2 PUE RTO VA LLA RTA 64.5 69.7 AG UA SCA LI E NT ES 44.4 52.8 G UA DA LA JA RA 47.0 48.1 G UA NA JUATO 48.0 46.7 T I JUA NA 37.0 39.9 HE RMO SI LLO 38.9 39.9 GAP International in 2016 is expect
Slide 21: GAP International: Commercial revenue growth
GAP International: Commercial revenue growth COMMERCIAL REVENUES Business operated directly 28% Business 9M15 9M16 Change Businesses operated by third parties: operated by a Leasing of space 108,598 127,503 17.4% third party Car rentals 112,297 142,869 27.2% 72% Food and beverage operations 139,835
Slide 22: 2016 Outlook
2016 Outlook
Slide 23: Traffic Evolution in 2016: GAP International
Traffic Evolution in 2016: GAP International Airports 2016 16 vs 15 Guadalajara 11,395,765 16.4% Tijuana 6,332,451 30.0% Los Cabos 4,247,971 16.3% Puerto Vallarta 4,063,306 13.1% Available seats 2015 vs 2016 5.00 Montego Bay 3,901,630 4.3% Change 16 vs 4.50 15: 14.6% Guanajuato 1,711,408 14.7% 4.00
Slide 24: Mexican Airlines Fleet Strategy
Mexican Airlines Fleet Strategy Number of Aircraft 140 132 125 118 120 105 100 80 70 70 The low-cost carriers have 63 60 56 experienced constant growth 44 44 40 levels for the past 8 years. 21 22 21 21 15 20 7 0 Grupo Aeroméxico Volaris Interjet VivaAerobus 2009 2013 2015 2016E GAP’s seats growth 16
Slide 25: GAP International: Revenue
GAP International: Revenue 100% 90% 81% 81% 80% 79% 79% 78% 77% 76% 75% 74% 74% 80% 70% 60% 50% 40% 30% 20% 26% 26% 25% 24% 23% 22% 21% 21% 20% 19% 19% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E NON AERONAUTICAL REVENUE AERONAUTICAL REVENUE +24% 2,514.0 2,203.0 Evolution of 2,014
Slide 26: Directly-operated business lines - Strategies
Directly-operated business lines- Strategies Creation of personalized service in the arrival of VIP Passengers in Puerto Vallarta and Los Cabos Increase in the number of VIP lounges, 3 more than 2015 with a total of 10 VIP lounges at the end of 2016 - Our VIP Lounge will be the largest network i
Slide 27: Directly-Operated Business Line Revenues and Margins
Directly-Operated Business Line Revenues and Margins Parking Advertising 2016E EBITDA: 85.1% 2016E EBITDA: 82.4% Parking Advertising $260 $160 $150 $244 $244 $140 $240 $122 $230 $120 $221 $100 Key drivers: $220 $100 $87 $76 $80 $194 $200 $60 Expanding $180 $40 $160 $20 Redefining 2012 2013 2014
Slide 28: Tijuana: the ideal gateway from Asia to LATAM
Tijuana: the ideal gateway from Asia to LATAM Closest city to any place in Asia from Latin America. Located at sea level, no slot Japan, constraints, improved terminals China, South Three potential markets: Korea… connecting (hub), Tijuana (Mexico) and Southern California (USA) Under certain
Slide 29: Tijuana and Guadalajara: efficient places for Asia-Pacific markets
Tijuana and Guadalajara: the two most efficient places to build Asia-Pacific markets in LATAM Distance from/to (kilometers) Tijuana Guadalajara Mexico City Bogota Santiago Chile Tokyo 9,066 10,985 11,332 14,286 17,228 Seoul 9,900 11,744 12,085 14,858 18,355 Beijing 10,318 12,159 12,473 14,923 19,045
Slide 30: Cross Border Overview
CROSS BORDER OVERVIEW Provides an efficient and economic way to cross the busiest border in the world (Tijuana-San Diego) High quality standards for all its users. Historically 60% of Tijuana’s passengers have the intention to cross the border Located 20 minutes from downtown San Diego and a
Slide 31: Cross Border Performance
CROSS BORDER PERFORMANCE From January to December 2016, around 1.3 million passengers have used the bridge in both ways; at an average rate of passenger usage of 21% over total traffic passenger. It is expected that in the middle term more that 1.0 million passengers from the US will use the CBX
Slide 32: Infrastructure Outlook
Infrastructure Outlook
Slide 33: Master Development Program: Mexico
Master Development Program: Mexico CAPEX 2016 CAPEX Guadalajara 745 Tijuana 370 MXP Millions 2,250.0 Los Cabos 215 Hermosillo 215 Puerto Vallarta 190 Total CAPEX 1999 – 2019 Guanajuato 120 MXP 16.5 billion 1,550.0 Others 395 TOTAL 2,250 1,287.1 MXP Millions 1,126.4 983.8 935.5 931.6 806.0 759.3 681.
Slide 34: Original Master Development Program: Mexico
Original Master Development Program: Mexico (in thousands of Pesos): Airport 2015 2016 2017 2018 2019 Total Aguascalientes 64,770 79,512 8,503 19,603 18,376 190,764 Guanajuato 65,333 101,453 60,484 40,160 2,270 269,700 Guadalajara 230,477 645,884 315,342 136,365 30,892 1,358,960 Hermosillo 88,508 18
Slide 35: Main Projects for Guadalajara
Main Projects for Guadalajara • 2016 - expansion of 4,000 sqm and integration of terminal 2 and terminal 1 • Adding 8 new gates • Reorganization of the external roadways • Expansion of the baggage screening system, • Upgrades in the cargo apron, taxiways and runway. Page 35
Slide 36: Main Projects for Guadalajara
Main Projects for Guadalajara • 2017 - Increasing 15,000 sqm capacity in terminal 1 • Adding 3 contact and 6 remote gates, • 20% more available space • 40% more gates • Additional 3,000 sqm for commercial activities Page 36
Slide 37: Main Projects for Tijuana
Main Projects for Tijuana • 2016 /17, 18,000 sqm in terminal expansions and upgrades with 25% more available space • Adding 6 boarding gates for remote operations • Enlarging and reordering departure lounges and baggage claim areas. • Additional 4,600 sqm for commercial activities Page 37
Slide 38: Main Projects for Tijuana
Main Projects for Tijuana • Renovation the entire airside of the airport with 4 new positions • Complete runway renovation including new lighting for operations in low visibility Page 38
Slide 39: Main Projects for Hermosillo
Main Projects for Hermosillo • Expansion of the terminal building adding 2,500 sqm , 50% more available space • Adding 2 new contact gates • Expansion of the baggage claim and waiting areas • Additional 500 sqm for commercial activities including a new VIP Lounge Page 39
Slide 40: Main Projects for Los Cabos
Main Projects for Los Cabos • Apron expansion with 2 new commercial and 14 general aviation parking positions • Terminal 1 –Refurbishment only for domestic traffic growing and improving commercial spaces. • Terminal 2 in 2017 – Increase capacity with 5,000 sqm, 5 new contact gates and a new remote l
Slide 41: Main Projects in other airports
Main Projects in other airports • Guanajuato airport – will increase 1,800 sqm for improve departure lounges and security control • Mexicali will increase 1,000 sqm capacity, adding new baggage belt Page 41
Slide 42: Master Plan
Master Plan MBJ CAPEX for 2017: more than $500 million MBJ currently reviewing its Master Plan with the pesos approved by the Jamaican Authority Authority. Highlights include: • In extension of buildings • Runway extension - from 2,662 to 2,943m • airside pavement • Ramp upgrade and Additional stand
Slide 43: Financial Highlights
Financial Highlights
Slide 44: Outstanding Results
Outstanding Results (in thousands of Pesos): 9M15 9M16 Change Revenues Aeronautical serv ices 4,128,915 5,132,886 24.3% Non-aeronautical serv ices 1,451,125 1,773,034 22.2% Improv ements to concession assets (IFRIC 12) 751,420 1,437,879 91.4% (in millions of USD): Total revenues 6,331,459 8,343,799
Slide 45: Outstanding Performance
Outstanding Performance Total Revenues EBITDA 41% (MXP Millions) (MXP Millions) CAGR 06 – 16E: 11.7% CAGR 06 – 16E: 12.2% 6,420 9,245 5,215 7,556 3,690 5,264 3,256 4,787 2,941 4,374 2,597 3,903 3,717 2,441 2,337 3,491 3,477 2,239 3,266 2,134 3,046 2,023 2006 2007 2008 2009 2010 2011 2012 2013 2014 2
Slide 46: Cost Efficiency = EBITDA Strength
Cost Efficiency = EBITDA Strength 2015 Variation Cost of Service per PAX (MXP) (Mexican Pesos) 48 49 50 49 47 52 49 -4 MBJ 45 43 37 36 +9 MEXICO 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E EBITDA per PAX (Mexican Pesos) 177 166 GAP looks for continuing cost CAGR 06 – 16E: 6.1% 138 141 14
Slide 47: GAP's hand in MBJ Airport
GAP’s hand in MBJ Airport Cost efficiency Additional Concession Fee USD$ 9 million more than in 2016 2015’s EBITDA Margin 56%... 2016’s 52% normalized Operating expenses lowered by USD$ 1.5 million vs. 2016 Synergies = Expense savings… purchasing process, better prices, better conditions f
Slide 48: Leverage Strategy
| Leverage Strategy Financing 100% of Mexican CAPEX up through 2019 via a bond program Financing MBJ’s future CAPEX (Wet Debt-to-EB/TDA ratio: 2x) Future mergers or acquisitions 100% leveraged Prudent leverage policy, fully compliant debt covenants; geting the best conditions in the market. Debt/Equ
Slide 49: Current debt structure (As of September 2016)
Current debt structure (As of September 2016) Total $9,556 (MXP millions) 44% USD MBJ Interest rate mix Scotia $631 $1,862 Fix Var Bond 16% BBVA $3,700 $1,862 Fix Bond $1,500 Floating 84% 56% MXP Ref Ints Millions Currency Amount Spread Amortization Maturity Rate Fix bond MXP $ 1,500 N/A 7.08% Bulle
Slide 50: Expected Net Debt-to-EBITDA ratio of 0.9x at end of 2016
GAP expects to have a Net Debt-to-EBITDA ratio of 0.9x at the end of 2016, keeping in line with healthy leverage levels. Page 50
Slide 51: Debt Ratings
Debt Ratings Standard & Poor’s Downward rating if… mxAAA - National scale •Net debt / EBITDA ratio consistently above 3.0 The outlook is stable (issued in June 2016) times Moody´s •Cash interest coverage ratio consistently Aa1.mx - National scale (Baa1 – Global scale) below 5.0 times The outlook on
Slide 52: 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 Distribution graph by year of the Net Income, paid in the following year: 4,00
Slide 53: Continued Returns for Investors: 2016 Distribution
Continued Returns for Investors: 2016 Distribution Delivering one of the highest dividend yields in the market 2016 Annual Shareholders’ Meeting: approved a dividend payment and equity reduction that will result in a dividend yield of 5% • Ps. 1.75 billion (Ps. 3.33 per share) already paid in May 20
Slide 54: Solid Financial Profile
Solid Financial Profile Solid capital structure and high cash flow generation Revenue diversification and optimum passenger traffic mix Efficient cost control Record of six consecutive years of double digit growth in EBITDA Well defined CAPEX increasing capacity for future growth Low interest cost l
Slide 55: Guidance 2017
Guidance 2017 GAP INTERNATIONAL Traffic 9% +- 1% Aeronautical Revenue 14% +- 1% Non-Aeronautical Revenue 15% +- 1% Total Revenue 14% +- 1% EBITDA 11% +- 1% EBITDA Margin 68% +- 1% CAPEX –MDP Ps. 2.08 billion Page 55
Slide 56: 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
Grupo Aeroportuario del Pacífico (GAP) — Investor Presentation (January 2017) on 6ix