Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (March 2017)
51 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, March 2017
Slide 1: Corporate Presentation
Corporate Presentation March 2017
Slide 2: Unique Value Proposition
Unique Value Proposition Page 2
Slide 3: About GAP
GAP’s shares are listed on the NYSE under ticker symbol “PAC” and on the Mexican Stock Exchange About GAP 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 Aer
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: GAP operates some of the most important airports in Mexico
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 These 5 airports represented 23% of the GAP Airports 30.0 passenger traffic of the 25.0 Mexican Airport Groups 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
Slide 8: GAP grew 18.2% from 2015 to 2016 in Mexican Airports
GAP grew 18.2% from 2015 to 2016 in Mexican Airports 40.00 36.0 35.00 Ebitda Margin: 73% 32.6 CAGR 99 – 2017E: 30.00 4.5% Millions 27.6 Ebitda Margin: 25.00 67% 24.7 23.6 23.2 22.3 21.3 20.5 20.2 20.00 20.2 19.1 19.3 17.5 Ebitda Margin: 16.4 16.4 16.2 16.1 65% 15.00 15.3 1999 2000 2001 2002 2003 200
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% from 2015 to 2016
Mature and stable market: MBJ grew 4.3% from 2015 to 2016 Traffic growth has accelerated over the last five years CAGR 03 – 2017E: Growth rates above Caribbean 1.9% average 4.5 3.9 4.0 Solid and stable tourism market 4.0 3.7 3.6 3.4 3.5 3.2 3.3 3.2 3.2 3.2 3.2 3.3 Increased number of destina
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: Commercial strategy has led to an increase of 254% from 2006 to 2016
Commercial strategy has led to an increase of 254% from 2006 to 2016 in our Mexican airports Commercial revenues per passenger (MXN) at GAP Mexican airports 70.00 CAGR 06-17E 60.00 7.9% $55 $58 $53 50.00 $46 $48 $44 $37 $39 40.00 $36 $32 30.00 $25 $27 20.00 10.00 - 2006 2007 2008 2009 2010 2011 2012
Slide 18: GAP: Commercial revenue per airport in 2016
GAP: Commercial revenue per airport in 2016 LO S CA BO S 101.7 115.3 MO NT EG O BAY 88.8 108.0 PUE RTO VA LLA RTA 64.3 69.8 AG UA SCA LI E NT ES 45.7 54.1 G UA NA JUATO 47.5 47.9 G UA DA LA JA RA 47.3 47.2 T I JUA NA 36.0 39.3 HE RMO SI LLO 38.8 38.5 In 2017 we are estimating a MA NZA NI LLO 29.9 33
Slide 19: GAP: Commercial revenue growth
GAP: Commercial revenue growth COMMERCIAL REVENUES Business operated directly 28% 12M15 12M16 Change Business Businesses operated by third parties: operated by a Leasing of space 147,215 177,071 20.3% third party Car rentals 152,096 198,721 30.7% Food and beverage operations 181,832 220,548 21.3% 72
Slide 20: 2017 Outlook
2017 Outlook
Slide 21: Traffic Evolution in 2016
Traffic Evolution in 2016 Change 17E Airports 2016 16 vs 15 2M17 vs 2M16 vs 16: 11.4% Guadalajara 11,395,765 16.4% 1,905,264 16.6% Tijuana 6,332,451 30.0% 1,092,883 19.3% Available seats 2016 vs 2017E Los Cabos 4,247,971 16.3% 812,921 20.4% 5.00 Puerto Vallarta 4,063,306 13.1% 915,060 8.6% 4.50 Mont
Slide 22: Mexican Airlines Fleet Strategy
Mexican Airlines Fleet Strategy Number of Aircraft 160 138 140 133 125 118 120 105 + 38 new planes for the 100 75 85 Country 80 69 70 63 55 60 44 44 40 33 21 22 21 21 15 20 7 0 Grupo Aeroméxico Volaris Interjet VivaAerobus 2009 2013 2015 2016 2017E GAP’s seats growth 17E vs 16 Point-to-point high-yi
Slide 23: Revenue Mix
Revenue Mix 100% 90% 81% 81% 80% 79% 79% 78% 77% 76% 75% 75% 74% 74% 80% 70% 60% 50% 40% 30% 20% 26% 26% 25% 25% 24% 23% 22% 21% 21% 20% 19% 19% 10% 0% +15% 2006 3,014.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E NON AERONAUTICAL REVENUE AERONAUTICAL REVENUE 2,570.0 2,514.0 Evolution of
Slide 24: Aeronautical + Non Aeronautical Strategies
Aeronautical + Non Aeronautical Strategies Non Aeronautical – Business operated by Non Aeronautical – Business operated Aeronautical third parties directly by us •Negotiations with airlines to position •Modernize commercial offering to •Parking spaces’ expansion and their new fleet in our airports i
Slide 25: 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 26: Tijuana and Guadalajara: the two most efficient places to build Asia-Pacific markets in LATAM
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 27: 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 28: 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 29: Infrastructure Outlook
Infrastructure Outlook
Slide 30: Master Development Program: Mexico
Master Development Program: Mexico CAPEX 2017 CAPEX Guadalajara 393 Los Cabos 294 MXP Millions 2,250.0 Tijuana 289 Hermosillo 128 Guanajuato 119 Total CAPEX 1999 – 2019 Puerto Vallarta 87 MXP 16.1 billion 1,550.0 Others 240 TOTAL 1,550 1,287.1 MXP Millions 1,126.4 983.8 935.5 931.6 806.0 759.3 681.0
Slide 31: 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 32: 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 32
Slide 33: 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 33
Slide 34: 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 34
Slide 35: 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 35
Slide 36: 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 36
Slide 37: 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 38: 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 38
Slide 39: 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 40: Financial Highlights
Financial Highlights
Slide 41: Outstanding Results
Outstanding Results (in thousands of Pesos): 12M15 12M16 Change Revenues Aeronautical serv ices 5,622,575 7,037,920 25.2% Non-aeronautical serv ices 1,933,760 2,393,604 23.8% (in millions of USD): Improv ements to concession assets (IFRIC 12) 838,635 1,676,037 99.9% Total revenues 8,394,970 11,107,5
Slide 42: Outstanding Performance
Outstanding Performance 11% EBITDA Total Revenues*** (MXP Millions) (MXP Millions) CAGR 06 – 17E: 12.4% CAGR 06 – 17E: 12.2% 7,297 10,780 6,583 9,432 5,215 7,556 3,690 5,264 3,256 4,787 2,941 4,374 2,597 3,903 2,441 3,717 2,337 2,239 3,491 2,023 2,134 3,477 3,046 3,266 2006 2007 2008 2009 2010 2011
Slide 43: EBITDA Strength
EBITDA Strength Cost of Service per PAX (Mexican Pesos) 59 52 48 49 50 49 49 45 47 43 37 36 EBITDA per PAX (Mexican Pesos) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 180 182 166 CAGR 06 – 17E: 5.8% GAP looks for continuing 138 141 149 129 providing quality services 101 111 121 99 9
Slide 44: 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 45: Debt structure As of December 2016
Debt structure As of December 2016 Total $9,814 (MXP millions) Interest Rate Hedges (85% Floating Interest Rate) MBJ 47% USD Scotia Amount $667 Spread Floor CAP1 CAP2 Maturity $1,973 (Millions) Var Bond Ene-Feb USD 191 Libor30 0.42% 1.75% 2.75% $3,700 BBVA 2021 $1,973 MXP2,200 TIIE28 4.05% 5.75% 6.7
Slide 46: 2017 Expectations
2017 EXPECTATIONS GAP expects to have a Net Debt-to-EBITDA ratio of 1.0x at the end of 2017, keeping in line with healthy leverage levels. Page 46
Slide 47: 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 48: 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 49: 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 50: 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 50
Slide 51: Forward-looking statements
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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