Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Q1 2024 Earnings Presentation
74 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's earnings presentation, May 8, 2024
Slide 1: 1Q24 Corporate Presentation
1Q24 CORPORATE PRESENTATION
Slide 2: Content
CONTENT Company Overview 3 Regulatory changes in Mexico 9 Operational Information 16 Traffic drivers backing future growth 23 Overview of main airports 30 Financial perspective 38 Master Development Program 2020-2024 54 Sustainability 65 Consolidated figures for 2015 include information for Montego
Slide 3: Company Overview
COMPANY OVERVIEW
Slide 4: Record traffic: 63.5 million passengers in 2023
Record traffic: 63.5 million passengers in 2023 +11.9% vs 2022 4
Slide 5: Key Value Drivers
KEY VALUE DRIVERS Transparent Highly diversified Resilient business regulatory asset portfolio model framework New commercial Positive cash flow Commitment to projects with and healthy Sustainability attractive returns leverage Consistent distributions to our shareholders
Slide 6: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE CMA1 AENA 66.7% 33.3% Capital Stock Series BB (AMP): 75,791,620 Series B (Public Float): 429,485,844 Total Shares: 505,277,464 AMP2 PUBLIC FLOAT (Strategic Partner) 85% 15% GAP’s board members 6 independent 1 non-independent 4 appointed by AMP (1) Controladora Mexicana de Aer
Slide 7: International and domestic airports
81 24 International and 57 domestic
Slide 8: GAP Competitive Advantages 2023
GAP COMPETITIVE ADVANTAGES 2023 Total revenues Revenues by airport Passenger profile Passenger distribution Passenger profile
Slide 9: Regulatory Changes in Mexico
REGULATORY CHANGES IN MEXICO
Slide 10: Rules for Tariff Regulation in Mexico
RULES FOR TARIFF REGULATION IN MEXICO • New Formula for Maximum Tariff: 5 (𝑀𝑇 • 𝑊𝐿𝑈𝑡 ) − (𝐼𝑡 + 𝐶𝑡) 𝑁𝑃𝑉𝑛 = + 𝑇𝑉 1+𝑟 𝑡 𝑡=1 NPV (Net Present Value) Refers to Reference Value I & C (Capex and Opex) (RV) of year n •Investment = Master Development Program (5y Mandatory) •C = Cost of…
Slide 11: Rules for Tariff Regulation in Mexico
RULES FOR TARIFF REGULATION IN MEXICO Discount rate - changed from Ke to WACC: this modification reflects the actual balance sheet position of the Company, as well as the leverage strategy followed in recent years. Inputs for WACC Definition Risk Free Rate ➢ 5-year average of UMS Bonds with maturity
Slide 12: Rules for Tariff Regulation in Mexico
RULES FOR TARIFF REGULATION IN MEXICO • Claw back of the 3% excess passengers: the trigger will occur when the actual aggregated workload units for the quinquennium surpass the 3% over the workload units projected in the MDP on a consolidated basis. In that case, the excess revenues generated airpor
Slide 13: Rules for Tariff Regulation in Mexico
RULES FOR TARIFF REGULATION IN MEXICO • Terminal Value: The main change is that the terminal value will now begin in year 6 until the end of the concession, instead of year 16 • Redistribution of the Reference Values of the airports: During the process of determining the Maximum Tariff for the follo
Slide 14: Federal Duties Law in Mexico
FEDERAL DUTIES LAW IN MEXICO • Concession fee changed from 5% to 9% over total revenues (aeronautical + non-aeronautical), as of January 1, 2024. • The payments disbursed in 2024 to the Government over those included in the most recent ordinary review, will be added to the reference value for the 20
Slide 15: Timeline for MDP Ordinary Review
TIMELINE FOR MDP ORDINARY REVIEW Jan 2023 – Jun 2023 Quality standards survey Jan 2023 – Jun 2023 Traffic projections & Investment needs by airport Jun 2023 – Dec 2023 Master Development Program (MDP) proposal by airport Jan 2024 – Mar 2024 Presentation of the MDP to the Operations and Schedules Com
Slide 16: Operational Information
OPERATIONAL INFORMATION
Slide 17: Drivers for Sustainable Growth
DRIVERS FOR SUSTAINABLE GROWTH Expected seat capacity Passenger traffic Increase of hotel growth +60% by 2027 expansion from capacity and real estate (Mexican airlines) connecting markets in tourist destinations Nearshoring effect Larger VFR market and benefitting Tijuana, New Terminal Building comm
Slide 18: EBITDA Historical Performance
HISTORICAL PERFORMANCE EBITDA Margin 65.7% 66.5% 67.2% 68.0% 70.1% 71.5% 69.8% 69.9% 69.5% 68.4% 60.2% 69.7% 71.6% 69.5% All figures are in millions of pesos. Passenger traffic in millions. Revenues and EBITDA Margin exclude IFRIC 12.
Slide 19: Largest Airport Operator in Mexico
LARGEST AIRPORT OPERATOR IN MEXICO DURING 1Q24 GAP OPERATED 5 OF THE TOP-TEN BUSIEST AIRPORTS IN MEXICO Source: Passenger traffic reports as of March 31, 2024.
Slide 20: GAP's Key to Success: Diversification
GAP’S KEY TO SUCESS: DIVERSIFICATION Change Airport 1Q24 vs 1Q23 23 vs 22 22 vs 19 21 vs 20 21 vs 19 20 vs 19 19 vs 18 18 vs 17 17 vs 16 Guadalajara 4,161.8 (0.3%) 13.5% 5.1% 50.7% (17.5%) (45.3%) 3.4% 12.1% 12.4% Tijuana 2,938.0 (5.7%) 7.1% 38.1% 53.2% 8.4% (29.2%) 13.9% 10.3% 12.2% 81.5% Puerto Va
Slide 21: Passenger Traffic Evolution by Airport
PASSENGER TRAFFIC EVOLUTION BY AIRPORT Airport 1Q24 2023 2022 2021 2020 2019 2018 Guadalajara 4,161.8 17,710.2 15,606.6 12,243.0 8,125.6 14,846.3 14,351.6 Tijuana 2,938.0 13,194.9 12,324.6 9,677.9 6,316.6 8,925.9 7,835.1 Puerto Vallarta 2,118.7 6,790.1 6,208.7 4,120.0 2,536.1 5,051.9 4,767.1 Los Cab
Slide 22: Main Airlines by Passengers Transported in 1Q24
MAIN AIRLINES BY PASSENGERS TRANSPORTED IN 1Q24 MARKET SHARE IN GAP
Slide 23: Traffic Drivers Backing Future Growth
TRAFFIC DRIVERS BACKING FUTURE GROWTH
Slide 24: Fleet Orders - Mexican Airlines
FLEET ORDERS - MEXICAN AIRLINES 154 134 130 109 100 87 80 36 23 2019 2024 New 2019 2024 New 2019 2024 New Orders Orders Orders
Slide 25: GDP Growth
GDP GROWTH Historically, GDP and Aviation growth have been highly correlated 57.5% GDP Mex – GAP Pax traffic 0.90 Correlation 2009-2023 In GAP, pax demand is growing 28.5% 3.8x faster than GDP (2009-2023) 8.9% 6.7% 11.8% 18.2% 11.7% 10.9% 11.3% 7.7% IMF GDP Mex 1.9% 2024 – 2028 annual growth forecas
Slide 26: Nearshoring
NEARSHORING Nearshoring represents a unique opportunity for Mexico, comparable to the implementation of the Free Trade Agreement in 1994 The Mexican economy could turn to grow at an annual rate of 3.7% compared with 2.6% in the last two decades (Forbes) 5 of the top 10 most benefitted states in Mexi
Slide 27: Nearshoring: Imports into the U.S. by Country
NEARSHORING IMPORTS INTO THE U.S. BY COUNTRY 538.51 536.75 505.17 504.94 483.20 475.60 468.47 462.42 449.11 454.93 440.43 432.68 427.20 384.65 China 356.09 343.68 323.52 Mexico 312.67 295.73 296.43 293.50 280.56 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Source: New York Times. Figures i
Slide 28: Growth Drivers – Leisure Markets
GROWTH DRIVERS – LEISURE MARKETS LOS CABOS PUERTO VALLARTA MONTEGO BAY ❑ + 900 New Hotel Rooms 2024 – 2025 ❑ + 2,500 New Hotel Rooms 2024 – 2025 ❑ Largest expansion of tourist development in the history of Jamaica ❑ 3 new Golf Courses ❑ VIDANTA WORLD Theme Park 2024 ❑ + 12,300 New Hotel Rooms 2024 –
Slide 29: Growth Drivers – Leisure Markets
GROWTH DRIVERS – LEISURE MARKETS Mexico and Jamaica are the top two countries Los Cabos, Montego Bay, and Puerto Vallarta U.S. tourists wish to visit in 2024 were among the Top 10 tourist destinations for U.S. tourists (2023) Source: Allianz Travel Source: Marriot survey
Slide 30: Overview of Main Airports
OVERVIEW OF MAIN AIRPORTS
Slide 31: Guadalajara
GUADALAJARA Guadalajara is well connected to markets of By monetary value, Guadalajara moves more North, Central, and South America and Europe international cargo than both Mexico City airports combined 960,828 AIFA 88,340 AICM 819,673 Guadalajara CDMX Mexico City 32 25 Madrid Bogota Panama City Van
Slide 32: Guadalajara – Cargo Imports by Segment 1Q24
GUADALAJARA – CARGO IMPORTS BY SEGMENT 1Q24 CARGO VOLUME CARGO VALUE Source: GAP
Slide 33: Guadalajara – Cargo Exports by Segment 1Q24
GUADALAJARA – CARGO EXPORTS BY SEGMENT 1Q24 CARGO VOLUME CARGO VALUE Source: GAP
Slide 34: Tijuana
TIJUANA Tijuana Passenger Traffic Evolution, 2013-2023 13.2 12.3 + 7.1% 2023 vs 2022 +27.3% 2022 vs 2021 9.7 8.9 7.8 7.1 6.3 6.3 4.9 4.3 4.4 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 41 Mexican cities New route to Phoenix (PHX) by American Airlines 41 destinations Hainan (HU) to resume
Slide 35: Puerto Vallarta
PUERTO VALLARTA Puerto Vallarta traffic reached historic levels with almost 7 million passengers during 2023. The Airport will offer an average of 533 weekly 1 departures to 53 routes for current year. 13 destinations 23 destinations 16 destinations destination
Slide 36: Los Cabos
LOS CABOS Los Cabos Passenger Traffic Evolution, 2013- 2023 Million 9.9% 2023 vs 2022 7.7 26.5% 2022 vs 2021 7.0 5.2 5.6 5.5 4.9 4.2 3.4 3.3 3.7 3.1 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Los Cabos is the 6th busiest airport in 12 destinations 30 destinations terms of annual passenge
Slide 37: MBJ
MBJ 24 destinations 10 destinations Cancun 11 destinations CARIBBEAN 5 destinations
Slide 38: Financial Perspective
FINANCIAL PERSPECTIVE
Slide 39: Key Financial Drivers
KEY Financial Drivers Preserve a healthy financial position Strategic Leverage Debt covenants compliance WACC improvement Distributions consistent with financial results
Slide 40: Aeronautical Revenues
AERONAUTICAL REVENUES ▪ During 1Q24 GAP reached 99% of the Maximum Tariffs approved for the year ▪ Aeronautical revenues represented 75% of aeronautical + non-aero revenues in 1Q24 CAGR 2010-2023: 15.5%
Slide 41: Non-Aeronautical Revenues
NON-AERONAUTICAL REVENUES ▪ Non-aeronautical revenues represented 25% of aeronautical + non-aero revenues in 1Q24 Non-Aeronautical Revenues per passenger 38 41 47 51 54 59 65 68 71 77 90 85 92 97 94 109 MXP All figures are in millions of pesos. CAGR 2010-2023: 17.5%
Slide 42: Commercial Strategy
COMMERCIAL STRATEGY GAP operated Strategic layouts business lines Development of new Improve passenger business lines experience
Slide 43: Non-Aeronautical Revenues by Business Line
NON-AERONAUTICAL REVENUES BY BUSINESS LINE 1Q23 1Q24 Change Businesses operated by third parties: Food and beverage 238,448 297,367 24.7% Duty-free 143,408 198,598 38.5% Retail 194,585 184,653 (5.1%) Car rentals 171,134 181,852 6.3% Leasing of space 43,711 84,472 93.3% Time shares 85,020 86,473 1.7%
Slide 44: Non-Aeronautical per Passenger 1Q24
NON-AERONAUTICAL PER PASSENGER 1Q24 Non-aeronautical revenues consolidated per pax 1Q23 - MXP 94 1Q24 - MXP 109 All figures are in pesos.
Slide 45: Total Revenues
TOTAL REVENUES CAGR 2010-2023: 15.9%
Slide 46: EBITDA Evolution
EBITDA EVOLUTION EBITDA Margin 65.7% 66.5% 67.2% 68.0% 70.1% 71.5% 69.8% 69.9% 69.5% 68.4% 60.2% 69.7% 71.6% 69.5% 72.3% 69.8% All figures are in millions of pesos.
Slide 47: Net Income
NET INCOME All figures are in millions of pesos.
Slide 48: EBITDA Generated in USD 1Q24
EBITDA GENERATED IN USD 1Q24 USD (millions): Mexico Jamaica 1Q24 % over the total Aeronautical revenue - 43 43 15% Non-aeronautical revenue 19 16 35 35% Total Revenues (1) 19 59 78 20% Total Expenses 9 35 44 38% EBITDA 10 23 34 12% 1Excluding IFRC-12
Slide 49: Debt Composition as of March 2024
DEBT COMPOSITION AS OF MARCH 2024 Total debt $40,500 million Credit rating agencies: mxAAA: National Scale Outlook: Stable February 27, 2024 AAA.mx: National Scale Outlook: Stable February 28, 2024
Slide 50: Debt Maturity 2024 – 2033
DEBT Maturity 2024 – 2033 (as of March 31, 2024) (millions of pesos)
Slide 51: Leverage Ratios
LEVERAGE Ratios 33.3 x INTEREST DEBT SERVICE 21.7 x 12.9 x 10.3 x 9.0 x NET DEBT / EBITDA 6.6 x 6.8 x 5.7 x 4.2 x 1.7 x 1.7 x 1.3 x 1.4 x 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.9 x 0.9 x 0.7 x 0.7 x 0.6 x 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 52: Shareholder Distribution
SHAREHOLDER Distribution Repurchase program (millions of pesos) executed 2,000 8,000 9.0% 7,498 7,313 7.9% 3,000 8.0% 7,000 7.2% 6,018 6,015 6.5% 7.0% 6,000 6.1% 5,256 6.0% 5,000 4,756 3,889 5.3% 5.3% 5.0% 4.2% 4,000 4.9% 3,100 3,153 4.6% 4.0% 3,000 3.0% 2,000 2.0% 1,000 1.0% - - 0.0% 2014 2015 2016
Slide 53: Guidance 2024
GUIDANCE 2024 2024 vs 2023 Traffic (5%) to (3%) Aeronautical revenues (4%) to (2%) Non-aeronautical revenues 12% to 14% Total revenues 0% to 2% EBITDA (7%) to (5%) EBITDA Margin 65% + / - 1% CAPEX MXP 9,000 million ➢ Passenger traffic estimates are based on the consolidation of the routes developed
Slide 54: MDP 2020-2024
MDP 2020 -2024
Slide 55: Guadalajara Second Runway and Second Terminal
GUADALAJARA SECOND RUNWAY AND SECOND TERMINAL ➢ Infrastructure development to meet future demand and ensure a seamless connection process includes: ▪ Second runway ▪ New aprons ▪ New terminal building (will start in this quinquennium and will be concluded in the next one) ➢ Opportunity to transform
Slide 56: Airfield Reconfiguration - 2024
AIRFIELD RECONFIGURATION - 2024 Second Runway New General Aviation Facilities Runway length → 3,538 m New apron → 126,090 sqm Increase of capacity for +20 million passenger 85 aircraft positions Execution term: 2022-2024 4 positions for helicopters Taxiways New General Aviation Buildin
Slide 57: Guadalajara Mixed-Use Building
GUADALAJARA MIXED-USE BUILDING Offices building Hilton Garden Hotel with 180 rooms (10 levels) → 12,580 sqm Offices building (11 levels) → 12,330 sqm Commercial spaces → 5,732 sqm Triangular offices building (5 levels) → 1,578 sqm Parking lot buses → 655 sqm Refurbishment of current terminal b
Slide 58: Parking Lot Expansion
PARKING LOT EXPANSION Current Parking lot Expansion Phase 2 (2025-2027) Expansion Phase 1 (2022-2024) 58
Slide 59: Parking Lot Expansion
PARKING LOT EXPANSION 59
Slide 60: Parking Lot Expansion 2022-2027
PARKING LOT EXPANSION 2022-2027 70,000 sqm Current Parking lot 2,204 spaces Total future Phase 1 –Terminal 1 133,736 sqm CurrentParkinglot+Phase1 capacity 3,860 spaces 10,110 spaces Execution term: 2022-2024 Phase 2 –Terminal 2 313,296 sqm CurrentParkinglot+Phase1+Phase2 10,110 spaces Execu
Slide 61: Tijuana Terminal Processor Building
TIJUANA TERMINAL PROCESSOR BUILDING ➢ Building that will enable international passengers in transit to go through Tijuana Airport in a fast way without being processed by Mexican Authorities - Expansion of International Terminal Building → 39,391 sqm - Refurbishment of current Terminal Building → 7,
Slide 62: Passenger Traffic Growth Drivers
PASSENGER TRAFFIC GROWTH DRIVERS A. Traffic from the South of California aiming to go to Mexican beaches and VFR Market B. Potential International destinations to be explored ASIA LatAm USA Beijing Panama Phoenix Shanghai Guatemala Oakland Drivers de crecimiento Seoul de tráfico El Salvador
Slide 63: Puerto Vallarta New Terminal Building
PUERTO VALLARTA NEW TERMINAL BUILDING ➢ Construction oriented towards the concept of “Net-Zero” energy ➢ 8 additional aprons ➢ 8 contact departure gates ➢ 4 remote departure gates ➢ Opportunity to develop more commercial offer ➢ +74,000 sqm ➢ Construction is expected to conclude in 2026 and will sta
Slide 64: Los Cabos Terminal Expansion
LOS CABOS TERMINAL EXPANSION ➢ Expansion of International Terminal Building (+20,000 sqm) ➢ Four additional aprons ➢ Two additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Phase 1 operating since 2021 ➢ Phase 2 under construction, concluded during 2023 64
Slide 65: Sustainability
SUSTAINABILITY
Slide 66: ESG Strategic Axes
ESG Strategic Axes In 2022, we developed the GAP 2030 Sustainability Strategy to align all our efforts with the ESG issues most relevant to the business and our stakeholders. Our Sustainability Strategy is aligned with the United Nations 2030 Agenda and addresses 12 of its 17 Sustainable Development
Slide 67: Sustainability 2023 Ranking Results
Sustainability 2023 Ranking Results Socially Responsible National Emission Great place to work S&P Global CSA Company Registry (RENE) In 2023, we participated in this For the third time, we actively We have participated in this We report annually under this initiative, positioning our company partic
Slide 68: Sustainability 2023 Ranking Results
Sustainability 2023 Ranking Results IC-500 Corporate Equality Gender Index Moody’s ESG Solutions Carbon Disclosure Project Integrity Bloomberg For the 4th consecutive year, we In 2022 and 2023 we participated in this For the third consecutive year, we For the second year in a row, we participated in
Slide 69: GAP Foundation
GAP Foundation GAP believes education is crucial to society’s development. In 2013, we established the GAP Foundation, a non-profit organization that promotes quality education through two initiatives: GAP Schools and Community Training Centers OVER THE LAST 7 YEARS, WE HAVE DONATED AROUND MXP $500
Slide 70: GAP Schools
GAP Schools GAP Schools, at the elementary, middle and high school levels, provide excellent education for vulnerable local communities. Currently, there are six campuses in the areas near the Guadalajara and Los Cabos airports, with 909 students in Guadalajara and 480 students in Los Cabos. In addi
Slide 71: GAP Community Training Centers
GAP Community Training Centers The Community Training Centers are located at GAP’s 12 Mexican airports, with programs to combat educational lag (elementary, middle, and high school) and various courses and workshops. This endeavor raises the quality of life and promotes social mobility through educa
Slide 72: Corporate Governance
CORPORATE Governance ➢ GAP complies with the best national and international Corporate Governance practices to maximize value creation, optimize decision-making, and promote a culture of compliance and accountability. ➢ The Board of Directors is responsible for the administration of the Company. The
Slide 73: Investor Information
INVESTOR Information Alejandra Soto Corporate Headquarters IR & Social Responsibility Officer Av. Mariano Otero No. 1249-B 6th floor asoto@aeropuertosgap.com.mx Torre Pacífico, Rinconada del Bosque Guadalajara, Jalisco, México. Zip Code 44530 Gisela Murillo +(52) 33 3880 1100 Investors Relations Aer
Slide 74: Grupo Aeroportuario del Pacifico
Grupo DN Aeroportuario del Pacifico
Grupo Aeroportuario del Pacífico — Q1 2024 Earnings Presentation on 6ix