Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q2 2020 Earnings Presentation
37 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, July 2020
Slide 1: Second Quarter 2020 Results
SECOND QUARTER 2020 RESULTS GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V. 1
Slide 2: Forward-looking information and statements
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 ma
Slide 3: About the Company
ABOUT Who we are ABOUT • More than 900 employees committed to THE COMPANY providing aeronautical, commercial and real state services of excellence to our passengers THE COMPANY and clients. Our Businesses • 13 Airports in the central-north region of Mexico, serving 23 million passengers in 2019. • 2
Slide 4: Agenda
Company Overview Value Proposition | Historical Performance | Shareholder Structure | Board of Directors and Management Team | Operations & Sustainability Aeronautical Business Connectivity & New Routes | Passenger Traffic | Airline Participation | Aeronautical Revenue 2Q20 Non-Aeronautical Business
Slide 5: Company Overview
Company Overview Value Proposition Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability 5
Slide 6: Cost and expenses efficiency
Cost and Constant Healthy Maximizing Experienced expenses growth in balance value board of efficiency Adjusted sheet distribution directors and EBITDA and management High margins team potential portfolio of Sustained Visibility in Successful Commitment to airports and passenger aeronautical commerci
Slide 7: Historical Performance
Company Overview Historical Performance CAGR 2012-LTM Jun20 Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) PAX 4.2% Revenues¹ 9.7% 23.2 10,000 24.0 Adjusted EBITDA 13.3% 21.6 22.0 19.7 7,572 18.8 8,000 6,766 17.5 20.0 16.9 27% 24% 5,803 18.0 26% 5,934 14.7 5,205 6,000 16
Slide 8: Shareholder Structure
Company Overview Shareholder Structure 14.7% SETA 1 Shares 85.3% Public Float 2 B Shares Market Capitalization 3 Ps. Bn. $41.7 / USD Bn. $1.8 Note: As of June 30, 2020 ¹ Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA - 12.8% BB Shares and 1.9 B Shares) ² Float includes repurchased shares
Slide 9: Board of Directors & Management Team
Company Overview Board of Directors & Management Team Experienced Management Team (Average time with OMA: 7 years) Ricardo Dueñas *2018 Chief Executive Officer Ruffo Pérez Pliego *2018 *2018 Chief Financial Officer Adriana Díaz General Counsel Héctor Cortés *2004 *2001 Chief Commercial Officer Enriq
Slide 10: Aeronautical Business
Aeronautical Business Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenue 2Q20 10
Slide 11: Passenger Flows and Top Routes 6M20
Aeronautical Business Passenger Flows and Top Routes 6M20 Total PAX Domestic PAX International PAX Top Routes* Thousand Pax 2,000 Passenger traffic has started to show 1,500 recovery signs since June, 2020. MTY – MEX (-40%) 01 1,000 CUL - TIJ (-35%) 02 500 613 573 MTY - CUN (-58%) 03 41 MTY - GDL (-
Slide 12: Passenger Traffic
Aeronautical Business Passenger Traffic HIGHLIGHTS PASSENGER GROWTH PASSENGER SHARE (%) YoY 6M20 Passenger Growth by type of airport 2Q20 Millions ∆% CJS -52% Border Cities 9% Total PAX 0.6 -90.2 Domestic 0.5 -89.7 Tourist 15% CUU -52% International 0.0 -94.8 CUL -47% TRC -54% MTY -54% REX -54% Regi
Slide 13: Airline Participation (LTM)
Aeronautical Business Airline Participation (LTM) Total PAX 88% 12% 17.5 mm Domestic 22.9 mm International Passengers Passengers Viva Viva American -11.0% 34% -11.7% 21% -15.8% 31% Aerobus Airlines Aerobus United 17% -27.1% Volaris 23% -13.8% Volaris 25% -13.7% Airlines Grupo Grupo 16% -30.0% Grupo
Slide 14: Aeronautical Revenues 2Q20
Aeronautical Business Aeronautical Ps.154mm -89.7% 44% of Total Revenue* Revenues 2Q20 Ps. 263.9/PAX *Total Revenues excluding Construction Revenues Domestic Passenger Charges International Passenger Charges Airport Services Ps.49mm -95.1% Ps.18mm -93.9% Ps.87mm -54.8% 32% of 12% of 56% of Aeronauti
Slide 15: Non-Aeronautical Business
Non-Aeronautical Business Diversification Revenues Non-Aeronautical Revenues 2Q20 Historical NAR Growth 15
Slide 16: Diversification Revenues
Non-Aeronautical Business Diversification Revenues NHT2 OMA CARGA HILTON MTY REAL ESTATE COLLECTION GARDEN INN INDUSTRIAL PARK 3.9% of NAR | 287 Rooms 19.6% of NAR 0% of NAR | 134 Rooms 6.3% of NAR 2.2% of NAR Avg. Room Rate: Avg. The Room hotel Rate: remained -23.1% revenues in 2Q20 +29.3% revenues
Slide 17: Non-Aeronautical Revenues 2Q20
Non-Aeronautical Ps.193mm -57.5% Revenues 2Q20 56% of Total Rev.* *Total Revenues excluding Construction Revenues Commercial Activities Diversification Activities Complementary Activities Ps.98mm -57.8% Ps.65mm -57.3% Ps.31mm -57.4% 50% of 33% of 16% of Non-aeronautical Revenue Non-aeronautical Reve
Slide 18: Historical Non-Aeronautical Revenue Growth
Non-Aeronautical Business Historical Non-Aeronautical Revenue Growth NAR – Commercial/PAX NAR – Diversification/PAX NAR – Complementary/PAX NAR PAX 1 100 CAGR 2012 - LTM Jun20 90 90 440 • PAX ¹ +4.2% • NAR +10.9% 79 19% 74 75 80 71 390 • NAR/PAX +6.4% 18% 70 66 8% 16% 60 61 8% 340 60 55 9% 28% 8% 7%
Slide 19: Financial Results
Financial Results Highlights 2Q20 Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 19
Slide 20: Highlights 2Q20
Financial Highlights Highlights 2Q20 Consolidated Net Income Ps. -181mm -121.4% Revenues* Cost of Services and G&A Adjusted EBITDA** Ps. 347mm -82.2% Ps. 293mm -22.4% Ps. 25mm -98.2% Ps. 595.8 / PAX (+81.9%) Ps. 503.5 / PAX (+693.9%) Ps. 43.5 / PAX (-82%) Aeronautical -89.7% 2Q20 Margin 7.3% Non-Aer
Slide 21: Cost and Efficiency
Financial Results Cost and Efficiency Cost and expense control has contributed to EBITDA growth CAGR Cost Control Strategy Adj. EBITDA / PAX AR+NAR / PAX Total Op. Costs and Exp./ PAX 1 2012 - LTM Jun20 220 .0 Seek operational leverage 200 .0 8.7% Energy consumption 180 .0 Development of a culture o
Slide 22: Balance Sheet
Financial Results Balance Sheet Strong Financial Position* Low Leverage Ps.Million Net Debt / Adjusted EBITDA 1.0 4,730 0.9 0.8 3,146 0.5 0.5 0.3 0.4 0.3 1,584 1 Total Debt Cash Net Debt 2013 2014 2015 2016 2017 2018 2019 LTM Jun20 Debt Profile* Capital Structure Evolution No significant debt maturi
Slide 23: Profitability Indicators
Financial Results Profitability Indicators Return on Assets (ROA) Return on Equity (ROE) CAGR 2013 - LTM Jun20 40.0 33.6 32.6 35.0 • ROA +3.1% 28.1 29.6 30.0 • ROE +2.9% 22.9 20.8 25.0 18.8 18.4 18.7 16.8 15.1 20.0 12.8 13.9 13.5 10.9 9.9 1 5.0 1 0.0 8.2 8.3 5.0 - 2012 2013 2014 2015 2016 2017 2018
Slide 24: Value Distribution
Financial Results Value Distribution Dividend or Capital Reimbursement Dividend Yield** Payour Ratio (million pesos)* Percentage Percentage 1,600 1,600 1,600 1,400 1,200 1,200 1,200 8.6 9.0 6.9 225 8.0 7.0 17 5 6.0 4.4 4.2 4.5 3.9 3.9 5.0 12 5 4.0 3.0 147 117 75 2.0 100 113 85 75 56 1 .0 25 - 2012 2
Slide 25: MDP & Maximum Rates
MDP & Maximum Rates Investments 2016-2020 New Terminals Maximum Rates 25
Slide 26: Investments 2016-2020
MDP & Maximum Rates Investments 2016-2020 Upcoming negotiation of Master Development Program for 2021-2025 period in 2H20 Total Committed Investment MTY, 28% Ps.5,999mm pesos of Dec. 31, 2019 2,50 Committed Actual / Expected 100% 90 % 2,00 80 % 1,748 1,677 1,575 70 % 1,377 1,276 1,284 1,264 1, 5 00
Slide 27: Investments 2016-2020: Committed Investment
MDP & Maximum Rates Investments 2016-2020 Total Committed Investment Most important projects Ps.5,999mm Terminal Expansion pesos of Dec. 31, 2019 Other Ciudad San Luis 6% Monterrey Chihuahua Tampico Juárez Potosí Operational Infrastructre Expansion 11% Terminal Expansion & New Terminals Operational
Slide 28: Terminal Expansions: TA-MTY Airport Project
MDP & Maximum Rates Terminal Expansions:TA-MTY Airport Project Terminal C Terminal A Terminal B Terminal A: 5.3 CAPACITY Terminal B: 3.4 (million passengers) Total Area 61,520 m2 Terminal C: 3.1 Total: 11.8 28
Slide 29: Terminal A Monterrey Airport Project: Phase 1
MDP & Maximum Rates Terminal A - Monterrey Airport Project 1 Phase st Expansion of the public and check-in areas of Terminal A and Construction of Wing #1 Wing #1 Terminal C Terminal A Public Area of TA Terminal B CAPACITY (million passengers) *Expected start of operations Terminal A: 5.3 CAPACITY T
Slide 30: Terminal A Monterrey Airport Project: Phase 2
MDP & Maximum Rates Terminal A - Monterrey Airport Project 2 Phase nd Construction of Wing #2 and Expansion of Both Public and Restricted Areas Wing #1 Wing #2 General Espansion of Terminal A Terminal A Terminal B *Expected start of operations Terminal A: 12.1 93,143 m2 CAPACITY Terminal Terminal B:
Slide 31: New Terminal: Tampico Airport
MDP & Maximum Rates New Terminal: Tampico Airport Fourth Quarter 2020* *Expected start of operations 6,833m2 7,981m2** 0.8mm PAX 1.1mm Investment Ps.175 mm Total Area Terminal building, m2 +17% Capacity Commercial spaces, m2 +25% PAX +38% **New Terminal net surface 31
Slide 32: New Terminal: Reynosa Airport
MDP & Maximum Rates New Terminal: Reynosa Airport Pending Inauguration 2,608m2 7,590m2* 0.3mm PAX 0.9mm Investment Ps.325 mm Total Area Terminal building, m2 Capacity +191% Commercial spaces, m2 +187% PAX +200% *New Terminal net surface 32
Slide 33: Maximum Rates
MDP & Maximum Rates Maximum Rates Visibility on Aeronautical Revenues Through 2020 MT Recovery Maximum Tariffs 2020 (2) 99.0% 99.6% WEIGHT AVG(1) 97.8% 94.5% Ps.263 13 AIRPORTS 13 Airports 2017 2018 2019 June 30, 2020 The maximum rate for each succeeding year through 2020 will be adjusted by inflati
Slide 34: Outlook and Industry
Outlook and Industry Industry trends Airline Fleets 34
Slide 35: Industry Trends
Outlook and Industry Industry Trends Air Industry has Low Penetration Projected in Mexico* Passenger Traffic CAGR 2017-2037** Flights per capita per year 2.7 Domestic Traffic, except Mexico-USA 2.4 4.8% 4.5% 4.6% 3.4% 2.4% 1.0 2.0% 0.5 0.5 0.4 Flights per capita per year % Passenger Traffic CAGR Arg
Slide 36: Airline Fleets and Available Seats
Outlook and Industry Airlines Fleets Historical Airline Fleets and Available Seats 2016 2017 2018 2019 2Q20 Aircraft 133 131 130 125 118 78 84 84 84 77 81 82 70 69 71 31 36 38 21 24 14 10 11 11 11 NA NA Available seats* 6.7 7.1 0.7 18.0 17.8 10.7 11.9 11.9 11.9 14.6 14.9 5.8 17.4 8.7 NA 12.2 12.5 13
Slide 37: Investor Relations Contacts
Chief Financial Officer Ruffo Pérez Pliego del Castillo rperezpliego@oma.aero +52.81.8625.4300 GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V. Investor Relations Luis Emmanuel Camacho Thierry ecamacho@oma.aero +52.81.8625.4308 37
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. — Q2 2020 Earnings Presentation on 6ix