Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q4 2016 Earnings Presentation
36 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, March 2017
Slide 1: Fourth Quarter 2016 Results
a“ a Fourth Quarter OMA | 2016 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 18.8 million passengers in 2016. 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: Fourth Quarter 2016 Results
Fourth Quarter 2016 Results Company Overview Non-Aeronautical Business Aeronautical Business Value Proposal Commercial Strategy Historical Performance Connectivity Diversification Strategy Shareholders Structure Passenger Traffic Historical NAR Growth Board of Directors and Management Team Airline P
Slide 5: Company Overview
Company Overview Value Proposal Historical Performance Shareholders Structure Board of Directors and Management Team 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 Cost and Growth in Maximizing Experienced expense
Slide 7: Company Overview | Historical Performance
Company Overview | Historical Performance Sustained positive trends through economic and business cycles 6,000 Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 18.8 19.0 CAGR 2010-2016 5,205 16.9 • PAX +8.4% 5,000 17.0 • Revenues +15.9% • Adjusted EBITDA +23.4% 26% 14.7 4,
Slide 8: Company Overview | Shareholder Structure
Company Overview | Shareholder Structure OMAB.MX • Price at 3/17/17 Mxn $97.9 • Market Cap Mxn bn 39.2 SETA1, 12.4% Float, 85.7% BB Shares B Shares2 CONOISA, 1.9% B Shares Note: Information as of December 31, 2016 . 1 Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Ope
Slide 9: Board of Directors and Management Team
Company Overview | Board of Directors and Management Team BOARD OF DIRECTORS MANAGEMENT TEAM Diego Quintana Kawage Porfirio González Chairman and Director appointed by SETA - Member Chief Executive Officer – With the Company since 1998 since 2011 Vicsaly Torres Guadalupe Phillips Margain Chief Finan
Slide 10: Operations & Sustainability Leadership
Company Overview | Operations & Sustainability Operations & Sustainability Leadership 2014 Culiacán Airport Mazatlán Airport
Slide 11: Aeronautical Business
Aeronautical Business Connectivity Passenger Traffic Airline Participation Aeronautical Revenues 4Q16
Slide 12: Aeronautical Business | Connectivity
Aeronautical Business | Connectivity 41 new direct routes in 2016 Domestic Routes Airline Domestic Routes Airline Chihuahua – Tijuana Aeroméxico Connect Chihuahua – Mexico City VivaAerobus Monterrey – Torreón Aeroméxico Connect Monterrey – Tijuana VivaAerobus Torreón – Monterrey Aeroméxico Connect C
Slide 13: Aeronautical Business | Passenger Traffic
Aeronautical Business | Passenger Traffic Passenger Traffic 4Q16 January - December 2016 Total Pax: 4.9 million (+12.5%) Total Pax: 18.8 million (+10.9%) 88% Domestic: 4.3 million (+13.9%) 87% Domestic: 16.4 million (+12.6%) 12% International: 0.6 million (+3.8%) 13% International: 2.4 million (+0.2
Slide 14: Aeronautical Business | Airline Participation
Aeronautical Business | Airline Participation 88% Domestic 12% International Passengers Passengers Other TAR 4% Other 2%, +41.0% 9% VivaAerobus 2%, -4.1% American Alaska 23%, -7.5% Interjet Aeroméxico 6%, -2.2% 18%, -3.7% 29%, +8.0% Interjet 6%, -10.7% Delta 9%, +3.4% United Volaris 20%, +2.7% 22%,
Slide 15: Aeronautical Revenues 4Q16
Aeronautical Business | Aeronautical Revenues 4Q16 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps. 686mm Ps. 220mm Ps. 148mm Ps. 1,054mm +38.4% +28.4% +6.0% +30.6% 65% of Aeronautical 21% of 14% of 74% of Total Rev.* Rev. Aeronautical Rev. Aerona
Slide 16: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Historical NAR Growth NAR 4Q16
Slide 17: Non-Aeronautical Business | Commercial Strategy
Non-Aeronautical Business | Commercial Strategy International Franchises Premium Strategy Maximize Innovative & & Commercial Areas Advertising Renowned Local Loyalty Programs Brands Detail of Commercial Initiatives Implemented in 4Q16 Airport Type Quantity Acapulco, Tampico, Torreón, Reynosa and Zac
Slide 18: Non-Aeronautical Business | Diversification Strategy
Non-Aeronautical Business | Diversification Strategy OMA Carga 10.3% of NAR Real Estate 1.0% of NAR Industrial Park 0.7% of NAR +30.8% revenues in 4Q16 Ps. 2,689mm 1,650m2 +38.7% New ground cargo facility revenues in 4Q16 First two warehouses leased started operations on February 16, Third and Fourt
Slide 19: Non-Aeronautical Business | 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 Base = 2005 NAR Total Passengers 400 CAGR 2010-2016 +363% 350 • PAX +8.4% • NAR +18.1% 300 250 200 150 100
Slide 20: Non-Aeronautical Revenues 4Q16
Non-Aeronautical Business | Non-Aeronautical Revenues 4Q16 Commercial Diversification Complementary Non-Aeronautical Activities Activities Activities Revenues Ps. 177mm Ps. 128mm Ps. 55mm Ps. 361mm (+17.3%) +19.1% +20.1% +6.3% 26% of Total Rev * Ps. 73.4 / PAX 49% of 36% of 15% of NAR NAR NAR * Tota
Slide 21: Financial Results
Financial Results 4Q16 Highlights Profitability Indicators Value Distribution Balance Sheet
Slide 22: Financial Results | 4Q16 Highlights
Financial Results | 4Q16 Highlights Adjusted Consolidated Passengers Revenues* EBITDA** Net Income 4.9mm Ps. 1,415mm Ps. 879mm +12.5% +27.0% +35.2% Ps. 569mm Domestic +13.9% Aeronautical +30.6% 4Q16 Margin 62.2% +43.7% International +3.8% Non-Aero +17.3% 4Q15 Margin 58.4% *Total Revenues not conside
Slide 23: Financial Results | Profitability Indicators
Financial Results | Profitability Indicators 28.0 ROA / ROE 30.0 Percentage 25.0 20.8 20.0 18.8 16.8 13.9 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 Earnings per Share 4.76 Ps. 3.01 3.15 2.58 2.05 1.54 2011 2012 2013 2014 2015 2016
Slide 24: Financial Results | Focus on Generating Value
Financial Results | Focus on Generating Value Dividend or Capital Dividend Yield and Payout Reimbursement Ratio Ps. Million Percentage 1,600 Payout Ratio Dividend Yield 1,400 1,400 250 8.6 9.0 1,200 1,200 1,200 8.0 1,200 200 6.9 7.0 1,000 5.7 6.0 150 800 147 4.4 5.0 4.2 4.0 600 117 113 500 100 100 3
Slide 25: Financial Results | Healthy Balance Sheet
Financial Results| Healthy Balance Sheet Strong Financial Position* Low Leverage vs Industry* Ps. Million Net Debt / Adjusted EBITDA 1.0 4,694 3,006 0.9 0.8 0.8 0.6 0.5 1,688 Total Debt Cash Net Debt 2011 2012 2013 2014 2015 2016 Debt Profile* Capital Structure Improvement* Total Debt | Shareholders
Slide 26: Master Development Plan
Master Development Plan Investments 2016-2020 New Terminals Maximum Tariffs
Slide 27: Master Development Plan | 2016-2020 Total Committed Investment
Master Development Plan | 2016-2020 Total Committed Investment Ps. 4,640mm pesos of Dec. 31, 2015 Visibility of capital expenditure requirements through 2020 ZIH, 7% ZCL, 2% 1,6 00 100 % ACA, 13% 1,4 00 1,352 1,297 90% TRC, 3% CJS, 4% 80% TAM, 7% 1,2 00 CUL, 4% 987 70% 1,0 00 60% SLP, 9% 800 50% CUU
Slide 28: Master Development Plan | Total Investment
Master Development Plan | 2016-2020 Total Investment Ps. 4,640mm pesos of Dec. 31, 2015 Terminal Other Expansion & Most Important Projects Remodeling ICAO Certification 6% • Terminal Expansion • Monterrey 7% • Ciudad Juárez • Chihuahua Operational • San Luis Potosí Infrastructure Expansion 11% • Tam
Slide 29: New Acapulco Airport Terminal
Master Development Plan | New Acapulco Airport Terminal Ps. 547 mm investment 3 levels plus a mezzanine 1.3 mm PAX Total Capacity Comfort , Safety & Efficiency Beginning 6ofboarding gates July 2016 construction: Termination: 3 security 3T 2018checkpoints Surface: 18,800 Start of m2.: operations* 3Q
Slide 30: New Reynosa Airport Terminal
Master Development Plan | New Reynosa Airport Terminal Ps. 302 mm investment 22levels levels 1 mm PAX Total Capacity Comfort , Safety & Efficiency Beginning of construction: July 2016 Termination: 3T 2018 Surface: 18,800 Start of m2.: operations* 4Q 2018 * Expected
Slide 31: Expansion of SLP and CUU Airport Terminals
Master Development Plan | Expansion of SLP and CUU Airport Terminals Ps. 400 mm investment - SLP Beginning of construction: December 2016 Termination: 20 months 1.2 mm PAX Surface expansion: 8,600 m2 Total Surface remodeling: 4,100 m2 Capacity Total Surface: 13,000 m2 Ps. 308 mm investment - CUU Beg
Slide 32: Master Development Plan | Maximum Tariffs
Master Development Plan | Maximum Tariffs 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% Airport 2
Slide 33: Outlook
Outlook Industry Trends
Slide 34: Positive Trends in the Aeronautical Industry
Outlook | Positive Trends in the Aeronautical Industry Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2016-2035 5.1% 5.0% 2.5 4.9% 2.2 4.6% 3.7% 2.5% 2.1% 0.8 0.5 0.4 0.3 Mexico Argentina Brazil Canada Chile United Mexico Brazil United Canada Russia Central South St
Slide 35: Positive Outlook in Mexico
Outlook | Positive Outlook in Mexico Current Airline Fleets Airline Expansion Orders Airplanes Airplane orders (2013 – 2022) 133 100 80 69 70 60 47 21 14 11 TAR VivaAerobus Volaris Interjet Aeromexico Aeromexico Interjet VivaAerobus Volaris TAR Source: DGAC, Airlines. Latest information available.
Slide 36: Grupo Aeroportuario del Centro Norte
Grupo Aeroportuario del Centro Norte Chief Financial Officer Vicsaly Torres | vtorres@oma.aero | +52.81.8625.4300 Investor Relations Team Emmanuel Camacho | ecamacho@oma.aero | +52.81.8625.4308 Laury Franco Castillo | lfranco@oma.aero | +52.81.8625.4377 Paul Rivero Zavala | privero@oma.aero | +52.81
Grupo Aeroportuario del Centro Norte (OMA) — Q4 2016 Earnings Presentation on 6ix