Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Q3 2023 Earnings Presentation
63 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's earnings presentation, Nov 15, 2023
Slide 1: Sustainable Growth Corporate Presentation 3Q23
Sustainable Growth CORPORATE PRESENTATION 3Q23
Slide 2: Agenda and disclaimer
Company Overview 3 Regulatory changes in Mexico 8 Operational Information 11 Revenue Development 24 Financial Information 30 Master Development Program 2020-2024 42 Sustainability 54 Consolidated figures for 2015 include information for Montego Bay Airport as if the acquisition had taken place on Ja
Slide 3: Company Overview
CORPORATE PRESENTATION THIRD QUARTER 2023 Atv YA Company Overview —— —
Slide 4: Our Network
OUR Network Passengers (thousands) Traffic record: 56.7 million passengers in 2022 424 Los Mochis 1,080 La Paz 4,356 Montego Bay +32% vs 2021 12,325 Tijuana 7,019 Los Cabos 1,562 Kingston +16% vs 2019 1,299 Mexicali 1,945 Hermosillo 6,209 Puerto Vallarta 15,607 Guadalajara 166 Manzanillo 2,603 Guana
Slide 5: Competitive advantages
Competitive advantages 9M23 2 1 Excluding IFRIC-12 5 2 Visiting Friends and Relatives
Slide 6: Proposition
Proposition Highly diversified Resilient business Transparent asset portfolio model regulatory framework Visibility in tariffs and New commercial Philosophy and Capital Investments projects with commitment to ESG until 2024 attractive returns Consistent Positive cash flow distributions per and healt
Slide 7: Structure
Structure CMA1 AENA Capital Stock 66.7% 33.3% Series BB (AMP): 75,791,620 Series B (Public Float): 429,485,844 Total Shares: 505,277,464 AMP2 PUBLIC 15% FLOAT GAP’s board members 85% 6 independent 1 non-independent 4 appointed by AMP (1) Controladora Mexicana de Aeropuertos 7 (2) Aeropuertos Mexican
Slide 8: Regulatory main changes in Mexico
CORPORATE PRESENTATION THIRD QUARTER 2023 AK Regulatory main changes in Mexico =
Slide 9: Regulation in Mexico
Regulation in Mexico • Discount rate - going from Ke to WACC: this change reflects the actual balance sheet position of the company, as well as the leverage strategy followed in recent years. • Clawback of the 3% excess passengers: the trigger will be when the aggregated workload units for the quinq
Slide 10: Law in Mexico
Law in Mexico • Concession fee change from 5% to 9% over total revenues (aeronautical + non-aeronautical), as of January 1st, 2024. • The payments disbursed to the Government over those included in the most recent ordinary review, will be added to the reference value to be used in the 2025-2029 ordi
Slide 11: Operational Information
CORPORATE PRESENTATION THIRD QUARTER 2023 Atv YA Operational Information
Slide 12: Drivers for Sustainable Growth
privers 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 . m Li VFR ket and benefitting Tijuana, Elisha market an commercial c
Slide 13: EBITDA Performance
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% All figures are in millions of pesos. Passenger traffic in millions. Revenues and EBITDA Margin exclude IFRIC 12. 13
Slide 14: Mexico: top-ten busiest airports
MEXICO DURING 9M23 GAP OPERATED 5 OF THE TOP-TEN BUSIEST AIRPORTS IN MEXICO 14 Source: Passenger traffic reports as of September 30, 2023.
Slide 15: Diversification
Diversification Change Airport 9M23 vs 9M22 22 vs 19 21 vs 20 21 vs 19 20 vs 19 19 vs 18 18 vs 17 17 vs 16 16 vs 15 Guadalajara 13,243.9 18.2% 5.1% 50.7% (17.5%) (45.3%) 3.4% 12.1% 12.4% 16.4% Tijuana 10,006.1 10.7% 38.1% 53.2% 8.4% (29.2%) 13.9% 10.3% 12.2% 30.0% 80.0% Los Cabos 5,847.3 12.9% 25.1%
Slide 16: Passenger traffic by airport
by airport Airport 9M23 2022 2021 2020 2019 2018 2017 2016 Guadalajara 13,243.9 15,606.6 12,243.0 8,125.6 14,846.3 14,351.6 12,808.0 11,395.8 Tijuana 10,006.1 12,324.6 9,677.9 6,316.6 8,925.9 7,835.1 7,103.2 6,332.5 Los Cabos 5,847.3 7,019.3 5,549.6 3,064.2 5,609.1 5,249.0 4,909.7 4,248.0 Puerto Val
Slide 17: Main airlines by passengers transported 9M23
oem MAIN AIRLINES BY PASSENGERS TRANSPORTED IN 9M23 viva. ——» 10.0% @ e@aerobus on 17.4% 4¥F Acromexico 4 —* 6.5% x American Airlines “@ 3.1% ——* °2.9% ADELTA r* 2.4% Southwests volaris — MARKET SHARE || * 2.4% Maska UNITED 5. 17
Slide 18: Growth
Growth - Airlines are increasing their capacity in the Mexican market - Potential capacity growth by +60% by 2027 compared to 2019 Fleet by 2027e Fleet by 2025e Fleet by 2023e 18 Source: Volaris, Viva, and Aeromexico reports
Slide 19: Guadalajara
Guadalajara Strengths: Next Steps: • Jalisco is the largest recipient of remittances in • Connection to Canada, consolidate Europe and Mexico, with USD 5.4B in 2022 South America markets • GDL has a catchment area of 16 million people within a three-hour drive • Jalisco is the leader in job creation
Slide 20: Tijuana
TIJUANA Strengths: Next Steps: • Cross Border Xpress (CBX) and New Terminal • Connection to Asia, Central America and Processor Building USA • Baja California’s economy was the first in Mexico to recover from the pandemic • TIJ is benefiting from corporations “nearshoring” from Asia to Mexico • Medi
Slide 21: Only four airports recovered pre-pandemic traffic as of 2021
2021 vs 2019 AS OF 2021, ONLY FOUR AIRPORTS IN THE WORLD HAVE RECOVERED PRE -PANDEMIC PASSENGER TRAFFIC LEVELS Southwest Florida International Airport 0.66% Airport Name Passengers 2021 Passengers 2019 Adler-Sochi Airport 11,088,062 6,772,062 Aeropuerto Internacional 9,674,123 8,917,160 Luis Muñoz M
Slide 22: Tijuana third airport with highest recovery in 2022
2022 vs 2019 IN 2022, TIJUANA AIRPORT WAS THE THIRD AIRPORT 100% 90.9% WITH THE HIGHEST PRE-PANDEMIC RECOVERY IN THE WORLD 80% 60% % VAR 22 vs 19 43.6% 38.1% 40% 33.3% 23.6% 21.6% 19.6% 18.5% 20% 13.1% 11.9% 10.4% 9.1% 6.6% 6.2% 5.3% 4.8% 0% Source: ACI World Airport Traffic Report 2022 22 Note: Air
Slide 23: Destinations
Destinations Los Cabos Strengths: • Los Cabos has a collection of over 80 high quality resorts, with upwards of 18K rooms and +1.2K under construction • Puerto Vallarta has over 100 hotels with 25K rooms Puerto Vallarta and +5K more under construction • VidantaWorld, three revolutionary entertainmen
Slide 24: Revenue development
Revenue development a, Se —_
Slide 25: Breaking records
Breaking records ▪ During 9M23 GAP reached 99% of the Maximum Tariffs approved for the year ▪ Aeronautical revenues represented 76% of aeronautical + non-aero revenues in 9M23 CAGR 2010-2022: 15.9% 25 All figures are in millions of pesos.
Slide 26: Non-Aeronautical Revenues growth
Non-Aeronautical Revenues growth ▪ Non -aeronautical revenues represented 24% of aeronautical + non-aero revenues in 9M23 Non-Aeronautical Revenues per passenger 38 41 47 51 54 59 65 68 71 77 90 85 92 92 95 MXP CAGR 2010-2022: 17.4% 26 All figures are in millions of pesos.
Slide 27: Strategy
Strateg y 1) Expanding spaces and redesigned layouts - Redefinition of the commercial offer, well-known brands, new bidding processes improving current contract conditions 2) Strengthen GAP-operated business lines - New spaces and infrastructure parking lots, hangars, and new aprons for general avia
Slide 28: Non-aeronautical revenues per passenger
9M2023 Non-aeronautical revenues consolidated per pax 9M22 - MXP 92 9M23 - MXP 95 All figures are in pesos. 28
Slide 29: Non-aeronautical revenues by business line
by business line 9M22 9M23 Change Businesses operated by third parties: Food and beverage 577,652 748,361 29.6% Duty-free 535,938 583,824 8.9% Retail 451,440 531,703 17.8% Car rentals 398,902 427,802 7.2% Leasing of space 225,799 270,513 19.8% Time shares 178,968 166,585 (6.9%) Ground transportation
Slide 30: Financial Perspective
CORPORATE PRESENTATION THIRD QUARTER 2023 Financial Perspective a,
Slide 31: Key Financial Drivers
mmm KEY FINANCIAL Drivers Preserve a healthy financial aoxititen Conserve liquidity Ensure compliance with debt covenants Maintain investment grade Enhance operational efficiency Distributions consistent with Dividend Policy 31
Slide 32: Financial Results 9M23
Financial Results 9M23 47.7 million MXP 7,433 million Passengers Net Income 15.5% vs 2022 1.1% vs 2022 MXP 19,325 million MXP 7,643 million Revenues1 CAPEX 17.5% vs 2022 MXP 13,543 million MXP 14.84 per share EBITDA, Margin 1 70.1% Dividend payment approved for 14.0% vs 2022 2023 32 (1) Reve
Slide 33: Revenue Growth
Revenue Growth ▪ Mexican airports represented in 9M23 ~84% of aeronautical + non-aero revenues CAGR 2010-2022: 15.9% 33 All figures are in millions of pesos. Passenger traffic in millions. Revenues exclude IFRIC 12.
Slide 34: EBITDA Evolution
Evolution 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% 72.2% 70.1% 34
Slide 35: Net Income
_- Net INCoOMme All figures are in millions of pesos 1,484 2010 2011 2012 2013 2014 2015 2016 2017 +2018 2019 +68.4% 2020 2021 +1.1% 2022 9M22 9M23 35
Slide 36: Jamaica 9M23 results
9M23 USD (millions): Mexico Jamaica 9M23 % over the total MXN (millions) Aeronautical revenue - 117 117 14% 2,081 Non-aeronautical revenue 52 47 99 39% 1,756 Total Revenues (1) 52 163 215 20% 3,838 Total Expenses 26 96 122 38% 2,183 EBITDA 26 67 93 12% 1,655 1Excluding IFRC-12 36
Slide 37: Debt, September 2023
September 2023 NET DEBT TO EBITDA RATIO: 1.5x COMPOUNDED AVERAGE COST: 9.0% Aaa.mx – National Scale Outlook: Stable Aaa.mx – National Scale Issued on April 14, 2023 Outlook: Stable All figures are in millions of pesos. Issued on April 27, 2023
Slide 38: Debt maturity 2023-2033
All figures are in millions of pesos. Exchange rate as of September 30, 2023, of $17.6195 8.128 |USD 64") 6,346 usps 7,000 6,205 1,570 2023 2024 2025 =m DEBT MATURITY 2023-2033 8,743 lus 191, 5,598 5,378 3,000 2026 2027 mMxP 2028 muUSD 2029 4,280 2030 2031 3,000 2032 Biss 2033 38
Slide 39: Ratios
Ratios INTEREST DEBT SERVICE NET DEBT / EBITDA 39
Slide 40: Distributions
Distributions ▪ Pay all excess cash above a minimum cash balance (two months of OPEX + the short-term debt service) ▪ Dividend payment, capital reimbursement, or repurchase program, considering the most efficient tax practice Repurchase Program Executed 2,000 3,000 83.4% 69.0% 134.7% 68.3% 138.0% 14
Slide 41: Guidance 2023
2023 GUIDANCE 2023 vs 2022 Passenger traffic 10% - 12% Aeronautical revenues 13% - 15% Non-aeronautical revenues 16% - 18% Total Revenue 14% - 16% EBITDA 12% - 14% Margin EBITDA 70% +- 1% CAPEX Ps. 11.9 billion 41
Slide 42: MDP 2020-2024
CORPORATE PRESENTATION THIRD QUARTER 2023 MDP 2020-202 ee 42
Slide 43: Post-COVID maximum tariff and MDP
Post-COVID 19 MAXIMUM TARIFF MASTER DEVELOPMENT PROGRAM 14.88% 7.35% 219.49 208.77 21,832 -27.6% 179.56 15,802 MXP MILLIONS MXP MDP** 2020-2024 MDP 2020-2024 Extraordinary Review MT* 2019 MT 2020 MT 2020 Extraordinary Review s MXP 6,030 million in CAPEX r 7.35% Tariff *Maximum tariff (MT) per traffi
Slide 44: MDP 2020-2024 investments
2020-2024 4,124 3,518 2,937 MXP MILLIONS 2,696 2,528 2020 2021 2022 2023 2024 Total committed investments of MXP15,802 million *Figures expressed in pesos as of December 31, 2017 The Capital Development program for our Jamaican airports is under review, therefore Jamaican figures are not included 44
Slide 45: Second Runway and Second Terminal
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 Guadalajara
Slide 46: Reconfiguration 2024
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 New General Aviation Building → 1,440 sqm Taxi
Slide 47: Mixed-use building
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 building → 1,
Slide 48: Expansion
Expansion Current Parking lot Expansion Phase 2 (2024-2027) Expansion Phase 1 (2022-2023) 48
Slide 49: Expansion 2022-2027
Expansion 2022-2027 Total future Current Parking lot 70,000 sqm capacity 2,204 spaces 10,110 spaces Phase 1 – Terminal 1 133,736 sqm Current Parking lot+ Phase 1 3,860 spaces Execution term: 2023-2024 Phase 2 – Terminal 2 313,296 sqm Current Parking lot+ Phase 1+Phase 2 10,110 spaces Execut
Slide 50: Terminal Processor Building
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 → 7,517 sqm
Slide 51: Growth drivers
Drivers Drivers de crecimiento de A. Traffic from the South of California aiming to go to Mexican beaches and VFR Market tráfico B. Potential International destinations to be explored ASIA LatAm USA Beijing Panama Phoenix Shanghai Guatemala Oakland Seoul El Salvador Las Vegas Narita Bogot
Slide 52: New Terminal Building
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 2024 and start operations in 2025
Slide 53: Terminal expansion
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, will conclude during 2023 53
Slide 54: Sustainability
CORPORATE PRESENTATION THIRD QUARTER 2023 54
Slide 55: Strategic Axes
Strategic Axes Environmental Competitive Social Ethical Commitment Development Empowerment Governance Environmental The protection of We strive to We undertake We implement best Commitment the planet is a key contribute to the actions focused on governance issue in our economic growth the developmen
Slide 56: ESG recognitions and reporting
2022 Socially Responsible National Emission Great place to work S&P Global CSA Company Registry (RENE) In 2022 we participated in this For the second time, we actively We have participated in this We report annually under this initiative, positioning our company participated in S&P's Global program
Slide 57: ESG indices and rankings
2022 Equality Gender Index Bloomberg For the second year, we are part of this index, due to our initiatives aimed at achieving gender equity. IC-500 Corporate Carbon Disclosure Project The Most Responsible Integrity Companies -Expansión We participated for the 3rd For the second year, we remained in
Slide 58: Commitments
Commitments ➢ GAP Foundation has the purpose of improving the social well-being of the communities close to GAP airports through educational initiatives: GAP Schools and Community Training Centers ➢ GAP Schools are schools at the primary and secondary level that provide excellent education and food
Slide 59: Management systems and certifications
Integrated Management System (IMS) ISO 9001 and 14001:2015 PROFEPA Environment Quality Program Airport Carbon Accreditation (ACA) All Mexican airports are part of this program, We participate in the ACA program. By In 2022, we maintain this system which recognizes compliance with legal the end of 20
Slide 60: Blue
Blue Free service with the support of “Fundación Teletón” that assists passengers with disabilities due to a temporary or permanent, visible or invisible condition, as they pass through our airport facilities: ➢ Guided visits through the airport before the passenger flight ➢ Adapted and equipped toi
Slide 61: Governance
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 directors
Slide 62: Information
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 gmurillo@aer
Slide 63: Slide 63
Grupo Aeroportuario del Pacífico — Q3 2023 Earnings Presentation on 6ix