Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q4 2017 Earnings Presentation
40 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, 2018
Slide 1: Investor Presentation Fourth Quarter 2017 Results
INVESTOR PRESENTATION FOURTH QUARTER 2017 RESULTS
Slide 2: Forward-looking statements disclaimer
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 m
Slide 3: About the Company
About the Company Our businesses 13 Airports in the central-north region of Mexico, serving 19.7 million passengers in 2017. 2 Hotels; NH Collection Hotel in Terminal 2 of the Mexico City Airport, and Hilton Garden Inn at Monterrey Airport 1 Industrial Park at Monterrey Airport Who we are More than
Slide 4: Agenda
Non- MDP & Company Aeronautical Financial Outlook and Aeronautical Maximum Overview Business Results Industry Business Rates Value Proposal Historical Performance Connectivity & 2Q17 Highlights 4Q17 Commercial Strategy Industry Trends Shareholder Structure New Routes Cost & Efficiency Investments 20
Slide 5: Company Overview
Company Overview 1 Value Proposal 2 Historical Performance 3 Shareholder Structure 4 Board of Directors and Management Team 5 Operations & Sustainability
Slide 6: Company Overview | Value Proposal
Company Overview | Value Proposal Successful High potential Commitment to Sustained Visibility in commercial portfolio of sustainability, passenger aeronautical and airports and safety and growth tariffs diversification businesses security strategies Experienced Cost and Constant growth Maximizing b
Slide 7: Company Overview | Historical Performance
Company Overview | Historical Performance Sustained positive trends through economic and business cycles Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 3 19.7 20.0 CAGR 2011-2017 18.8 • PAX 8.9% • Rev enues 6,000 15.4% 16.9 5,803 18.0 • Adjusted EBITDA 20.5% 5,205 16.0 1
Slide 8: Company Overview | Shareholder Structure
Company Overview | Shareholder Structure 12.6% 1 SETA – BB shares 85.5% 2 Public Float - B Shares 1.9% 1 CONOISA – B shares 3 Market Cap . Ps. Bn. $40 / USD Bn. $2 Note: Share holding information as of December 31, 2017 1 Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de
Slide 9: Board of Directors & Management Team
Company Overview | Board of Directors & Management Team EXPERIENCED MANAGEMENT TEAM (Average time with OMA: 14 years) Porfirio González Chief Executive Officer – With the Company since 1998 CORPORATE GOVERNANCE Alfredo Domínguez General Counsel – With the Company since 2004 5 of 11 Directors are ind
Slide 10: Operations & Sustainability
Company Overview | Operations & Sustainability Always striving to meet international standards. Occupational Health and Safety CULIACÁN AIRPORT MAZATLÁN AIRPORT Aerodrome Certification Environment Quality and Customer Service Social Responsibility Sustainability Performance 10
Slide 11: Aeronautical Business
Aeronautical Business Connectivity & 1 New Routes 2 Passenger Traffic 3 Airline Participation 4 Aeronautical Revenues 4Q17
Slide 12: Connectivity & New Routes
Aeronautical Business | Connectivity & New Routes 4 1 n e w d i r e c t r o u t e s i n 2 0 1 6 44 n ew d i rect rou tes i n 12 M 17 Domestic Routes Domestic Routes 4 11 16 5 4 5 8 3 International Routes 6 Other 1 International Routes 2 5 5 4 1 5 Other +2.0% + 1 0 . 9 % + 4 . 8 % Seats added P A X i
Slide 13: Passenger Traffic
Aeronautical Business | Passenger Traffic 4Q17 Passenger Traffic 12M17 Passenger Traffic Total Pax: 5 million (+1.8%) Total Pax: 19.7 million (+4.8%) 88% Domestic: 4.4 million (+2.0%) 88% Domestic: 17.2 million (+5.1%) 12% International: 0.6 million (+0.6%) 12% International: 2.4 million (+2.8%) At
Slide 14: Airline Participation
Aeronautical Business | Airline Participation 88% Domestic 12% International Passengers Passengers TAR 2% (+6.4%) Charters 3% Other (-13.7%) Other 7% 5% (-6.9%) (+7.4%) United 22% VivaAerobus Interjet 6% (-5.6%) Interjet 28% (+2.8%) 17% (+17.5%) (-4.6%) Alaska 7% (+9.8%) Volaris 7% (-19.9%) Volaris
Slide 15: Aeronautical Revenues 4Q17
Aeronautical Business | Aeronautical Revenues 4Q17 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps.215mm Ps.1,090mm -2.2% +3.4% 74% of Total 20% of Revenue* Aeronautical Ps. 217.6 / PAX Revenue Ps.717mm Ps.158mm +4.6% +6.7% 66% of 14% of Aeronauti
Slide 16: Non-Aeronautical Business
Non - Aeronautical Business 1 Commercial Strategy 2 Diversification Strategy 3 NAR 4Q17 4 Historical NAR Growth
Slide 17: Commercial Strategy
Non-Aeronautical Business | Commercial Strategy Balance Develop Maximize between premium Add commercial international offerings & innovative areas franchises & loyalty advertising local brands programs 29 Commercial Initiatives Implemented in 4Q17 Airport Type Quantity Monterrey and San Luis Potosí
Slide 18: Diversification Strategy
Non-Aeronautical Business | Diversification Strategy NH Collection Hotel at Mexico City Airport Hilton Garden Inn Hotel in MTY 17.4% of NAR | 287 Rooms 16.9% 6.1% 5.8% of NAR | 134 Rooms Avg. Room Rate:Ps.2,226 Ps.2,324 per per night night (+5.1% yoy) Avg. Room Rate: Ps.1,960 Ps.2,023 per per night
Slide 19: Non-Aeronautical Revenues
Non-Aeronautical Business | NAR 3Q17 Non- Commercial Diversification Complementary Activities Activities Activities Aeronautical Revenues Ps.138mm Ps.390mm +7.2% +8% 26% of Total Rev.* 35% of NAR Ps. 77.9 / PAX Ps.193mm Ps.60mm +8.6% +8% 49% of NAR 15% of NAR * Total Revenues excluding Construction
Slide 20: Historical NAR Growth
Non-Aeronautical Business | Historical NAR Growth Non-Aeronautical Revenues (NAR) have increased faster than passenger traffic as a result of commercial initiatives and diversification projects 1,600 NAR - Commercial/PAX NAR - Diversification/PAX NAR Complementary/PAX NAR PAX +360% 44 0 1,400 CAGR 2
Slide 21: Financial Results
Financial Results 1 4Q17 Highlights 2 Cost & Efficiency 3 Balance Sheet 4 Profitability Indicators 5 Value Distribution
Slide 22: Financial Results | 4Q17 Highlights
Financial Results | 4Q17 Highlights Cost of Services and Consolidated Net Revenues* Adjusted EBITDA** G&A Income Ps. 1,058 mm Ps. 625 mm +23.3% +9.5% Ps. 211.1 / PAX (+21.1%) Ps. 124.7 / PAX (+7.6%) Ps. 1,480mm Ps. 999 mm +4.6% +13.6% Ps. 295.5 / PAX (+2.7%) Ps. 199.4 / PAX (+11.6%) Aeronautical +3.
Slide 23: Cost & Efficiency
Financial Results | Cost & Efficiency CAGR 2011 - 2017 Aj EBITDA / PAX AR+NAR / PAX Total Operating Costs and Expenses1/ PAX 10.6% Costs and expenses control 5.9% has contributed to the generation of EBITDA -0.2% 2011 2012 2013 2014 2015 2016 2017 Distribution of Operating Costs and Expenses* 5% Cos
Slide 24: Balance Sheet
Financial Results | Balance Sheet Strong Financial Position* Low Leverage vs Industry* Ps.Million Net Debt / Adjusted EBITDA 1.0 4,633 2,333 0.9 0.8 0.6 0.6 0.5 2,300 Total Debt Cash Net Debt 2012 2013 2014 2015 2016 2017 Debt Profile* Capital Structure Improvement* Total Debt | Shareholders’ Equity
Slide 25: Profitability Indicators
Financial Results | Profitability Indicators 35.0 ROA / ROE Percentage 30.0 28.0 28.8 CAGR 2011 - 2017 • ROA +14.1% • ROE +19% 25.0 • EPS +22.8% 20.8 20.0 18.8 16.8 13.8 14.7 12.8 15.0 10.1 10.9 9.9 10.0 8.2 8.3 6.6 5.0 - 2011 2012 2013 2014 2015 2016 2017 Earnings per Share 5.3 Pesos 4.8 3.0 3.1 2.
Slide 26: Value Distribution
Financial Results | Value Distribution Dividend or Capital Dividend Yield / Payout Ratio Reimbursement Percentage Percentage Ps. Million 1,600 250 8.6 9.0 1,400 8.0 1,200 1,200 1,200 200 6.9 7.0 5.7 6.0 150 147 4.4 4.5 5.0 4.2 4.0 100 117 113 500 100 3.0 81 85 2.0 50 1.0 - - 2011 2012 2013 2014 2015
Slide 27: MDP & Maximum Rates
MDP & Maximum Rates 1 Investments 2016-2020 2 New Terminals 3 Maximum Rates
Slide 28: Investments 2016-2020
MDP & Maximum Rates | Investments 2016-2020 Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 1,800 10 0% Visibility of capital expenditure requirements through 2020 1,586 1,522 90 % 1,600 Zacatecas, 2% 1,400 80 % Mazatlán, 3% Torreón, 3% Durango, 3% 1157 70 % 1,200 Ciudad Juárez, Monterr
Slide 29: Investments 2016-2020: Most Important Projects
MDP & Maximum Rates | Investments 2016-2020 Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 Most Important Projects Other Terminal Expansion ICAO Certification Terminal • Chihuahua Expansion • Monterrey 6% • San Luis Potosí 7% & Remodeling • Ciudad Juárez Operational • Tampico Infrastru
Slide 30: New Terminals: Acapulco Airport
MDP & Maximum Rates | New Terminals Acapulco Airport Investment Capacity Comfort Total Area Start of Operations Total PAX mm Ps.547 mm 3 levels plus a 15,326 m2* April 2018** 1.1 1.3, +18% Terminal building, m2 +13% mezzanine Commercial spaces, m2 +42% * New terminal net surface 30 ** Expected
Slide 31: New Terminals: Reynosa Airport
MDP & Maximum Rates | New Terminals Reynosa Airport Investment Capacity Comfort Total Area Start of Operations Total PAX mm Ps.314 mm 2 levels 7,590 m2* 4Q 2018** 0.3 1.0, +233% Terminal building, m2 +191% Commercial spaces, m2 +213% * New terminal net surface 31 ** Expected
Slide 32: Expansion & Remodeling: San Luis Potosí Airport
MDP & Maximum Rates | Expansion & Remodeling Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Total PAX mm 3,832 m2 10,398 m2* Ps.359 mm Terminal building, m2 +171% 1Q 2019** 0.4 1.2, +200% Commercial spaces, m2 +116% * Net surface after remodeling and expansion 3
Slide 33: Expansion & Remodeling: Chihuahua Airport
MDP & Maximum Rates | Expansion & Remodeling Terminals Chihuahua Airport Investment Capacity Total Area Start of Operations Total PAX mm 7,951 m2 12,929 m2* Ps.311 mm Terminal building, m2 +63% 4Q 2018** 0.9 1.7, +89% Commercial spaces, m2 +30% * Net surface after remodeling and expansion 33 ** Expe
Slide 34: Visibility on Aeronautical Revenues Through 2020
MDP & Maximum Rates | Maximum Rates Visibility on Aeronautical Revenues Through 2020 • Maximum rate (Regulated revenue per workload unit) increased in each airport • The maximum rate for each succeeding year through 2020 will be adjusted by inflation and an efficiency factor of 0.70% MT Compliance 9
Slide 35: Outlook and Industry
Outlook and Industry 1 Industry Trends Airline Fleets: Orders and 2 Expected 3 Load Factor
Slide 36: Industry Trends
Outlook and Industry | Industry Trends Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2016-2036 5.1% 2.5 4.8% 4.8% 2.4 4.4% 3.5% 2.3% 2.0% 0.9 0.4 0.5 0.3 Argentina Mexico Brazil Chile Canada United United Canada Russia Mexico Brazil Brazil Central States States Ame
Slide 37: Airline Fleets: Orders and Expected
Outlook and Industry | Airline Fleets: Orders and Expected Historical Airline Fleets and Available Seats Airplanes 2013 2014 2015 2016 2017E 133 129 124 125 117 77 Fleet 73 70 69 56 56 51 50 45 44 21 21 23 19 19 8 10 10 3 0 Available Seats 17,895 700 16,723 12,282 12,948 14,944 15,335 10,464 4,324 1
Slide 38: Airline Expansion Orders
Outlook and Industry | Airline Fleets: Orders and Expected Airline Expansion Orders (2013 – 2022) 100 80 52 47 20 Aeromexico Interjet Vivaaerobus Volaris TAR Source: DGAC, Airlines. Latest information available. 38
Slide 39: Load Factor (2006 – 2016)
Outlook and Industry | Load Factor Load Factor (2006 – 2016) • CAGR = 2.8% • During 2016, in our 13 Airports we had an increase of +1.0% to 75.4% in load factor • In 2016, Culiacán had the highest load factor of 80.7% 75% 74% 72% 72% 72% 70% 68% 65% 63% 59% 57% 2006 2007 2008 2009 2010 2011 2012 201
Slide 40: Investor Relations Contact
Grupo Aeroportuario del Centro N o r t e , S . A . B . , d e C . V. Investor Relations Emmanuel Camacho | ecamacho@oma.aero | +52.81.8625.4308
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