Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (January 2018)
51 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, January 2018
Slide 1: On the Right Track – Corporate Presentation Jan 2018
On the Right Track Corporate Presentation Jan 2018
Slide 2: About GAP
About GAP Shareholder Structure AENA Controladora Mexicana de 33.3% Aeropuertos (CMA) 66.7% Public Float 85% Aeropuertos Mexicanos del Pacífico (“AMP”) 15% Desarrollo de Concesiones Aeroportuarias 100% In 2017, GAP served one-fourth of Mexico´s terminal passengers and almost three – fourths of MBJ A
Slide 3: Shareholder Structure as of January 2018
Shareholder Structure as of January 2018 AMP (Strategic Partner) AENA 33.3% CMA 66.7% No Voting Power Cannot be represented in any shareholders meeting Treasury 35,424,453 6.3% GMexico: Excess Total Shares: 561,000,000 of shares Series BB (AMP): 84,150,000 AMP BB 15,737,430 Series B (Free Float): 47
Slide 4: Strategic Outlook
Strategic Outlook —— Sep eome i R egeeetae eae EN THAT
Slide 5: Transition from Ground to Air Travel Continues
Transition from Ground to Air Travel Continues • The total number of air passengers per capita has risen in recent years in Mexico, from 0.22x in 2011 to 0.42x in 2016, and this trend is expected to continue throughout this decade (Source: Santander and Volaris). It is important to highlight that ai
Slide 6: The Jamaican Market
The Jamaican Market Total Jamaica traffic during 2017 was 5.8 million passengers growing 6.9% vs 2016 Montego Bay (Sangster International Airport) Kingston International Airport • Montego Bay transported 4.2 million passengers or • Kingston transported 1.6 million passengers during 2017. 8% during 2
Slide 7: I – Airport Industry
I – Airport Industry
Slide 8: Largest Private Mexican Airport Operator
Largest Private Mexican Airport Operator 15% OMA 34% AICM Air traffic grew 8.6% during 2017 while GAP grew 11.7% Mexican Private Total Passengers 2017 vs Airports 2017 2016 24% AICM 44,732,418 7.2% GAP 36,483,037 11.7% ASUR ASUR 31,052,569 9.3% OMA 19,662,014 4.8% TOTAL 131,930,038 8.6% 28% GAP Sour
Slide 9: GAP Operates 5 of the 10 Most Important Airports
GAP Operates 5 of the 10 Most Important Airports Passenger Traffic in Mexico 50.0 +7.2% 44.7 in 2017 45.0 40.0 35.0 30.0 +10.2% GAP Airports 23.6 Millions 25.0 Other Airport Groups 20.0 +12.4% 15.0 12.8 +6.5% +12.2% 9.8 +15.6% 10.0 +11.3% 7.1 4.9 +10.5% +14.3% +10.6% 4.5 5.0 2.1 2.0 1.9 0.0 Page 9
Slide 10: GAP's Key to Success: Diversification
GAP’s Key to Success: Diversification % Passenger Share 2017 % Growth Share 2017 AGU 2% MLM 2% MLM 2% LMM 0% AGU 1% MXL 2% LMM 1% ZLO 0% ZLO 0% MXL 2% LAP 2% HMO 2% HMO 4% BJX BJX 6% 5% GDL 32% MBJ GDL 8% 34% MBJ 10% PVR 11% PVR 11% TIJ SJD 17% TIJ SJD 16% 19% 12% Page 10
Slide 11: Diversified Airport Portfolio in 2017
Diversified Airport Portfolio in 2017 Diversified portfolio of airports by Total Revenue by Airport* passenger traffic Others Mid-sized Puerto 15% Guadalajara cities Vallarta 28% 15% 12% Metropolitan Tijuana Montego Tourist areas Bay 13% destinations 49% Los Cabos 17% 36% 15% * Excluding IFRIC 12 Ty
Slide 12: Main Airlines by Passengers Transported 2017
Main Airlines by Passengers Transported 2017 Total seat growth: 4.5 million or 10.1% Total Passenger Share 2017 GAP CONSOLIDATED Airlines Additional Seats % Seat Growth 17 17 vs 16 vs 16 Volaris 1,806,591 12.2% VivaAerobus 724,082 22.3% Westjet Aeromexico 641,492 14.3% 2% Others Interjet 498,475 43.
Slide 13: Main Drivers: 2017
Main Drivers: 2017 • Mexican airlines expanded fleets and opened new routes. • Remittances from the U.S. rose, boosting purchasing power. • A growing middle-class means more demand for business and leisure flights. • Bilateral agreement supports overall transportation industry, driving capacity to M
Slide 14: GAP's Airports during 2017
GAP´s Airports during 2017 49.4 million total seats in 2017 Offered through GAP’s Airport Network Total Load Factor: 81.2% METROPOLITAN AREAS Tijuana: CAGR 2011-2017: 12.5% Guadalajara: CAGR 2011-2017: 10.1% • One of the best performing airport in terms of passenger • Reached the best year in its hi
Slide 15: GAP's Airports during 2017
GAP´s Airports during 2017 67% of the international traffic is driven by GAP’s tourist destinations Los Cabos and Puerto Vallarta: CAGR 2011-2017: 9.8 and 10.1% Montego Bay: CAGR 2011-2017: 4.5% • 4,500 + 3,000 additional hotel rooms, respectively, will be • Over 1,000 rooms added to the hotel inven
Slide 16: GAP's Airports during 2017
GAP´s Airports during 2017 Bajio Region: CAGR 2011-2017: 14.8% • Best performing pair of airports (Aguascalientes • Growing leisure and VFR (visiting friends and and Guanajuato) in GAP during the past 6 years as a relatives) market. result of the region’s industrial growth. • Aggressive low-cost air
Slide 17: Constant Evolution of the Aviation Industry
Constant Evolution of the Aviation Industry Total Seats Offered at GAP / Airline Type 60,000,000 50,000,000 40,000,000 59% 30,000,000 52% 38% 20,000,000 37% 61% 44% 10,000,000 - 2010 2011 2012 2013 2014 2015 2016 2017 Full Service Low-Cost Regional & Charter Low-cost carriers have gained a significa
Slide 18: Mexican Airlines Fleet Strategy
Mexican Airlines Fleet Strategy Number of Aircraft – All Mexico 140 133 Bullish 129 118 120 100 105 Capacity 80 69 71 70 77 Growth 60 44 44 VOI + AIJ + VIV to 40 add over 3.1 million 21 15 22 21 24 seats in GAP full 20 7 year 0 Grupo Aeroméxico Volaris Interjet VivaAerobus 2009 2013 2016 2017 Seat G
Slide 19: Record Passengers in GAP Mexico
Record Passengers in GAP Mexico From 99 – 2017 the average load factor for our Mexican airports: 77.5% 50.00 CAGR 2012 - 2017: 11.4% 45.00 CAGR 99 – 2017: 4.6% 45 40.00 35.00 36 33 Millones 30.00 25.00 28 25 24 23 20.00 22 Passengers 21 21 20 20 Seats 19 19 15.00 10.00 2005 2006 2007 2008 2009 2010
Slide 20: MBJ General Overview
MBJ General Overview • 90% of Jamaica´s room capacity is within MBJ´s natural catchment area. Passenger Traffic 2017 • Tourism sector confidence is reflected in additional 4.5 4.23 hotel capacity investments. CAGR 12 – 2017: 5.2% 4.0 3.90 3.74 3.58 Millions 3.5 3.42 3.28 3.0 2.5 Currently in Other,
Slide 21: Traffic Evolution 2017
Traffic Evolution 2017 Airports 2016 2017 17 vs 16 Guadalajara 11,395,765 12,808,007 12.4% Tijuana 6,332,451 7,103,249 12.2% Los Cabos 4,247,971 4,909,746 15.6% Puerto Vallarta 4,063,306 4,522,571 11.3% Montego Bay 3,901,630 4,225,590 8.3% Guanajuato 1,711,408 1,955,608 14.3% Hermosillo 1,561,455 1,
Slide 22: Traffic Evolution by Airline 2017 vs 2016
Traffic Evolution by Airline 2017 vs 2016 Load Factor Load Factor Airline Pax 2016 Pax 2017 Change % 2016 2017 Volaris 12,020,005 13,662,674 1,642,669 13.7% 81.0% 82.1% Aeromexico 5,952,112 6,008,825 56,713 1.0% 75.1% 78.5% Interjet 3,372,260 3,876,516 504,256 15.0% 75.2% 75.6% VivaAerobus 2,577,181
Slide 23: II – Revenue Development
II – Revenue Development
Slide 24: Total Revenues
Total Revenues Aero + Non Aero (MXP Millions) CAGR 06 – 17E:12.4% 11,040 9,432 7,556 5,264 4,787 4,374 3,903 3,717 3,491 3,477 3,266 3,046 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016 2017E *2015 Figures consolidate information for MBJ as if the acquisition had taken place January 1, 2015
Slide 25: Revenue Mix
Revenue Mix 100% 90% 81% 81% 80% 79% 79% 78% 77% 76% 75% 75% 75% 74% 80% 70% 60% Aeronautical Revenue 50% CAGR 06 – 17E:12.1% 40% 30% 20% 26% 25% 25% 25% 24% 23% 22% 21% 21% 20% 19% 19% 10% 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E NON AERONAUTICAL REVENUE AERONAUTICAL REVENUE
Slide 26: Commercial Revenue per passenger 9M17
Commercial Revenue per passenger 9M17 (In Mexican Pesos) LO S CABO S 115.3 119.6 MONT EGO BAY 105.2 112.2 PUERT O V ALLART A 69.7 78.3 AGUASCALI EN T ES 52.8 56.5 GUANAJ UAT O 46.7 55.1 GUAD ALAJ ARA 48.1 48.9 T I J UANA 39.9 41.3 9M17 9M16 M ANZ ANI LLO 33.8 38.2 In 2017 we are estimating a M O REL
Slide 27: Commercial Revenue growth
Commercial Revenue growth TOTAL REVENUES 25% USD (In thousand of Mexican Pesos) 9M16 9M17 Change 75% MXN Businesses operated by third parties: Leasing of space 127,503 150,486 18.0% Car rentals 142,869 177,721 24.4% Food and bev erage operations 167,463 217,470 29.9% Retail operations 199,504 239,16
Slide 28: Revenue Strategy - Summarized
Revenue Strategy - Summarized Our main goal is to translate current traffic and future growth into higher revenues… Optimizing Rates Traffic at our network Working with commercial partners for higher sales per Maximize our Enhanced passenger by our Air share of a healthy Service aviation industry De
Slide 29: Commercial Revenue Development
Commercial Revenue Development While GAP has strong commercial revenue per passenger from Montego Bay, we continue working on increasing our ratios in the Mexican network: Commercial Revenue Per Passenger MXP at our top five Mexican Airports 140.00 117.6 120.00 100.00 88.6 80.00 76.6 56.0 50.2 55.2
Slide 30: Commercial Strategy: 2006 to 2016 in our Mexican airports
Commercial Strategy has led to an increase of 254% from 2006 to 2016 in our Mexican airports Commercial revenue per passenger 70.00 (MXN) 59 60.00 55 CAGR 06-17E 53 50.00 8.1% 46 48 44 37 39 40.00 36 32 30.00 25 27 20.00 10.00 - 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 30.0% 25%
Slide 31: III – Airport Infrastructure
III – Airport Infrastructure
Slide 32: Master Development Program: 2015 - 2019
Master Development Program: 2015 - 2019 MEXICO CAPEX 2015 – 2019 4% In thousand of Mexican pesos 15% 41% 1,875.4 150.0* 1,550.0 40% 800.0* 1,126.4 1,000.0 419.7 Terminal Buildings Apron and airfield Equipment Environment 2015 2016 2017E 2018E 2019E 2018 and 2019 figures are updated to 2018 expected
Slide 33: CBX: Key Driver for Tijuana Airport
CBX: Key Driver for Tijuana Airport SOLICITAR FOTOS A third of Tijuana airport´s growth is due to CBX. As a result, domestic routes from Mexico are less expensive than international routes to cities such as Los Angeles and San Diego. CBX offers GAP’s passengers a new, safe and efficient option
Slide 34: CBX: Key Driver for Tijuana Airport
CBX: Key Driver for Tijuana Airport In the first year of operations, 1.3 million or The number of seats offered to/from tourist 21% of Tijuana passengers, used CBX. destinations increased 12% during 2017; this is a result of growing tourism from Southern During 2017, 1.9 million or 27% of Tiju
Slide 35: Main Projects – Guadalajara Terminal Area
MAIN PROJECTS – GUADALAJARA Terminal Area Terminal 1 expansion. Ongoing, to be completed during 1Q18 Expansion of 15.000 sqm, equivalent to 35% of existing terminal building area 3 new contact gates with boarding bridges; 13 remote boarding gates. 40% increase in boarding gates Increasing th
Slide 36: Main Projects – Tijuana Terminal Area
MAIN PROJECTS – TIJUANA Terminal Area Terminal building expansion. Ongoing, to be completed in 2018 Expansion of 25,000 sqm, equivalent to 57% of existing terminal building area Remodeling of 15,000 sqm Upgrading finishes of departure lounges and baggage claim areas New security checkpoint
Slide 37: Main Projects – Guanajuato Terminal Area
MAIN PROJECTS – GUANAJUATO Terminal Area Remodeling and expansion of the Terminal Building. To be completed April 2018 New security control with one additional lane reaching 4 Tripling boarding lounge capacity 1 additional gate. reaching 6 Expansion of immigration point and customs. 950 m2
Slide 38: Main Projects – Hermosillo Terminal Area
MAIN PROJECTS – HERMOSILLO Terminal Area Renovation and expansion of the Terminal Building. Completed 2017 New security checkpoint with two additional lanes reaching 4 New boarding lounge of 2,200 sqm with two contact gates and two air bridges Expansion of immigration and customs areas. 100%
Slide 39: Main Projects – Los Cabos Terminal Area
MAIN PROJECTS – LOS CABOS Terminal Area International Terminal Building Extension. Detailed design underway Construction of new boarding lounge 6,500 m2 and 10 remote boarding gates; commercial development improvements 3 new air bridges reaching 7 25% of expansion of immigration point: 2,300
Slide 40: IV – Financial Highlights
IV – Financial Highlights
Slide 41: Financial Results for 9M17
Financial Results for 9M17 9M16 9M17 Change Revenues Aeronautical serv ices 5,132,886 6,139,184 19.6% Non-aeronautical serv ices 1,773,034 2,107,452 18.9% Improv ements to concession assets (IFRIC 12) 1,437,879 1,049,786 (27.0%) Total revenues 8,343,799 9,296,422 11.4% Operating costs Costs of serv
Slide 42: FX Effect
FX Effect The Mexican peso devaluation generated a positive effect in our EBITDA in 2016 (millions of MEX MBJ TOTAL Percentage* USD): Total Revenue** 43 86 129 25% Total Expenses 14 41 55 18% EBITDA 29 45 74 25% * Percentage over the total amount in Mexican pesos **Excluding the effects of IFRIC 12
Slide 43: Outstanding Performance
Outstanding Performance If GAP reaches projected 2017 EBITDA, it will be doubling the amount in three years 2017E: MXP 11,040 2017E: MXP 7,640 2017E: MXP 4,267 CAGR 06 – 17E: 12.4% CAGR 06 – 17E: 12.8% CAGR 06 – 17E: 14.9% Page 43
Slide 44: Proven Track Record
Proven Track Record NET INCOME CAPEX STOCK MARKET MXP MILLIONS MXP MILLIONS CAPITALIZATION MXP MILLIONS 8 a S one SEs 2 06 07 08 O09 10 11 12 13 14 15* 16 06 O07 O08 O09 10 11 12 13 14 15* 16 6 07 08 09 10 11 412 13 14 15 16 f . a im fe: A *. - . F | RETURN ON ASSETSMR@A) RETURN ON EQUITY (ROE) Ba =
Slide 45: EBITDA Strength
EBITDA Strength 2016 Margin: 73% Mexico EBITDA MARGIN 53% Jamaica 70% 70% 69% 69% 68% 67% 67% 67% 66% 66% 65% 64% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E Cost of Service per PAX 11% EBITDA per PAX (MXP) 52 54 (MXP) 48 49 50 49 47 49 180 188 43 45 166 37 CAGR 06 – 17E: 6.0% 149 3
Slide 46: Financial Targets
Financial Targets • Maintain healthy financial levels Long Term Financial Targets: • Leveraging CAPEX Net Debt to EBITDA: below 2.2x • Potential Expansions leveraged Capital structure: 50 / 50 • Compliant debt covenants WACC: below 8.0% vs • Sustain debt ratings Interest coverage: above 5x • Improvi
Slide 47: Debt Ratings
Debt Ratings Standard & Poor’s: Downward rating if: Net debt to EBITDA over 3x • mxAAA – National scale • Outlook: Stable Interest coverage below 5x • Issued in October 2017 FFO/debt ratio below 30% Moody´s: Covenants 2016: Net debt to EBITDA = 0.7x • Aaa.mx – National scale • A3 – Global scale Inte
Slide 48: Debt Structure as of November 10, 2017
Debt Structure as of November 10, 2017 Total $13,121 (MXP millions) NET DEBT/ EBITDA Interest Rate Hedges 0.7X (77% Floating Interest Rate) Amount Rate Floor CAP1 CAP2 Maturity 30% USD (millions) MBJ Scotia Jan-Feb $478 $1,821 USD 191 Libor30 0.42% 1.75% 2.75% BBVA 2021 $1,821 “GAP15” Floating TIIE2
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 5,000 70 4,756 9% 47 4,500 8% 31 8% 8% 93 4,000 7% 7% 6% 3,889 3,500 170 43 15
Slide 50: Guidance 2018
Guidance 2018 GAP CONSOLIDATED Passenger Traffic 8% +- 1% Aeronautical Revenue 12% +- 1% Non-Aeronautical Revenue 16% +- 1% Total Revenue 13% +- 1% EBITDA 11% +- 1% EBITDA Margin 69% +- 1% CAPEX – MDP MXP 2,600 million 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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