Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B

Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Presentation (May 2019)

45 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor presentation, May 2019

  1. Slide 1: Corporate Presentation May 2019

    CORPORATE PRESENTATION MAY 2019

  2. Slide 2: 13 Airports

    13 Airports 12.7 MXP Revenues1 14.7% increase vs 2017 332 Destinations 8.8 MXP EBITDA 14.1% increase vs 2017 35 69.5% EBITDA margin1 Airlines 5.1 MXP 44.9 Net income 8.6% increase vs 2017 Passengers 10.4% increase vs 2017 2.5 MXP 1,337 CAPEX Employees 1 Excluding IFRIC12 2

  3. Slide 3: Passengers by airport (thousands)

    1,139 1,744 345 7,835 4,483 926 5,249 869 2,339 4,767 14,352 173 730 Passengers (thousands) * GAP expects to begin operating in 4Q19 3

  4. Slide 4: Aeropuertos Mexicanos del Pacífico Public Float

    Aeropuertos Mexicanos del Pacífico Public Float 15% 85% 12 Mexican airports & Kingston airport MBJ Airports Limited 100.0% 74.5% ’ Series BB (AMP): 84,150,000 6 independent Series B (Free Float): 441,425,547 4 appointed by AMP Series B (Repurchased): 35,424,453 1 appointed by Grupo Mexico Total Shar

  5. Slide 5: Revenue and passenger breakdown

    16% Others 4% 77% 12% 58% Other 25% MXP Puerto 29% Domestic Vallarta Guadajalara VFR 45% Leisure 15% 13% Los Cabos 26% Tijuana Business 42% 23% 15% International USD Montego Bay 1 Excluding IFRIC12 5

  6. Slide 6: Airport Groups Passengers

    4.1% 14.5% 32.0% Airport Passengers Passenger Growth Groups 2018 (million) vs 2017 AICM 47.7 7.1% GAP 40.5 10.9% ASUR 33.2 7.1% 22.3% OMA 21.6 10.7% ASA/Others 6.1 8.6% TOTAL 149.1 8.7% 27.1% Source: GAP, AICM, OMA, DGAC * ASUR Airports do not include general aviation passengers 6

  7. Slide 7: 5 of top 10 airports in Mexico operated by GAP

    47.7M 7.1% 5 of top 10 Airports in Mexico are operated by GAP 25.2M 6.8% 14.4M 12.1% 10.7M 9.8% 7.8M 10.3% 5.2M 4.8M 2.5M 2.3M 2.3M 6.9% 5.4% 14.1% 19.6% 18.9% Mexico City Cancún Guadalajara Monterrey Tijuana Los Cabos Puerto Vallarta Merida Guanajuato Culiacán Source: GAP, AICM, OMA, DGAC. *Cancun

  8. Slide 8: Airport Passengers Growth vs 2017

    Airport Passengers Growth vs 2017 Guadalajara 14,351,563 12.1% Tijuana 7,835,064 10.3% Los Cabos 5,249,039 6.9% Puerto Vallarta 4,767,060 5.4% Montego Bay 4,482,460 6.1% Guanajuato 2,338,752 19.6% Hermosillo 1,743,754 7.1% Mexicali 1,138,467 41.6% La Paz 926,334 9.2% Aguascalientes 868,505 15.2% Mor

  9. Slide 9: Airline Passengers and Load Factor

    Load Factor Load Factor Airline Pax 2017 Pax 2018 Change % 2017 2018 Volaris 13,662,722 15,828,200 2,165,478 15.8% 83.6% 83.5% Aeromexico 6,008,640 6,196,011 187,371 3.1% 80.1% 79.9% VivaAerobus 3,436,425 4,471,068 1,034,643 30.1% 86.8% 84.5% Interjet 3,876,516 4,456,110 579,594 15.0% 75.5% 76.6% Am

  10. Slide 10: Domestic and International Growth

    Domestic Growth International Growth vs 1Q18 vs 1Q18 3.9% 6.7% 10

  11. Slide 11: Airport Industry

    AIRPOR Thdustry 11

  12. Slide 12: Airbus Global Market Forecast growth by region

    2.1% 3.6% 2.0% 2.0% 4.5% 4.8% 7.0% 3.1% Source: Airbus Global Market forecast * Sub-Saharan Africa does not include South Africa 5.9% 12

  13. Slide 13: Seats and passengers in Mexico

    The average load factor for the Mexican airports has been 79.0% since 1999, while in 2018 it was 81.8% 55.0 52 AVERAGE GDP 50.0 GROWTH PAX CAGR 45.0 99-19E: 2.1% 1999-2019E: 5.1% 40.0 44 40 millions 35.0 36 30.0 33 25.0 28 Seats 25 24 23 Passengers 20.0 22 21 21 20 20 19 19 15.0 18 16 16 16 16 15 10

  14. Slide 14: Main Expectations for 2019

    Main Expectations for 2019 57 million seats (2.5 million additional seats vs. 2018) ~ 7% passenger traffic growth 83% load factor (2 basis points increase vs 2018) +350 total routes Growing Mexican airline fleet 140 130 127 118 120 105 100 86 90 77 80 80 60 44 44 40 31 35 21 22 20 15 7 0 Aeromexico

  15. Slide 15: New routes and airlines

    Route Airline Route Airline Guadalajara - Acapulco Volaris Guadalajara - Charlotte American Guadalajara - Chetumal Volaris Guadalajara - Detroit Aeromexico Guadalajara - Los Mochis TAR Guadalajara- San Salvador Volaris Guadalajara- Durango Volaris Los Cabos - Las Vegas Sun Country Guadalajara- Queré

  16. Slide 16: NAICM cancellation, an opportunity for GDL

     NAICM cancellation, an opportunity for GDL  Impressive infrastructure development to meet future demand and ensure a seamless connection process:  Second runway  New apron  New terminal building, road access and parking  Outstanding domestic and international connectivity  More direct routes

  17. Slide 17: Cross Border Xpress passengers

    2.2 million Passengers used CBX 28.9% TIJ PAX using CBX during 2018 17.6% more passengers Used CBX than in 2017 CBX benefits travelers from several regions, since this airport has more than 30 domestic connections to Mexican cities not covered The number of seats offered to/from beach destinations*

  18. Slide 18: Beach destinations: Los Cabos, Puerto Vallarta, La Paz

    6 0 t h o u s a n d total available hotel rooms amongst the three destinations, with the expectation to open additional 8 thousand additional rooms in the short-mid term. 8 4 % average load factor for the three airports, the highest in the Group. + 1 5 0 routes to destinations in 1 3 c o u n t r i e

  19. Slide 19: Commercial Revenues

    COMMERCIAL revenues

  20. Slide 20: Commercial revenues growth 2010-2019E

    16% growth in 2018 E > 3,550 2010-2019E Direct Operation 560 Third Parties 2,983 19.1% CAGR MBJ 519 2,573 International 2,246 474 2,000 436 1,783 333 1,676 1,448 1,184 1,185 1,076 936 920 738 784 758 706 636 574 553 990 788 530 625 650 369 426 231 300 164 2010 2011 2012 2013 2014 2015 2016 2017 2018

  21. Slide 21: Commercial revenues by airport and category

    (MXP (MXP 0% OTHERS 354 760 655 CAR PARKING 277 43 16% 613 578 519 CAR RENTAL 235 75 32% 474 DUTY FREE 398 71 18% 374 305 369 342 284 281 F&B 276 61 22% VIP LOUNGES 192 71 37% RETAIL 271 27 10% TIME SHARE 187 10 GDL SJD MBJ PVR TIJ OTHERS 5% 2017 2018 ADVERTISING 169 25 15% OUT OF TERMINAL 162 29 18

  22. Slide 22: Commercial revenue expectations 2019E

    (USD (MXP (MXP +19% 3,550 68.6 560 2,982 6.1 519 +13% +2% 60.9 2,463 2, 990 6.0 2018 2019 E 2018 2019 E 2018 2019 E MBJ MEXICO 22

  23. Slide 23: Commercial revenue and new image

    COMMERCIAL REVENUE 1st $3,550 units and new image 2nd 22.0% commercial square meters CAGR 2015-2019E GAP International 3rd commercial layouts 23

  24. Slide 24: Commercial square meters by airport

    AIRPORT SQM Guadalajara 10,119 Los Cabos 5,116 Puerto Vallarta 4,604 Tijuana 3,467 Hermosillo 1,107 Guanajuato 968 Mexicali 382 La Paz 347 Aguascalientes 339 Los Mochis 190 Morelia 150 Manzanillo 46 Total 26,833* *F&B, Retail, Car Rental and Duty Free 24

  25. Slide 25: Airport Infrastructure

    AIRPORT INFRASTRUCTURE

  26. Slide 26: CAPEX for 2019

    2,178 1,450* Others 1,656 Environmental 7% 1,527 4% 1,159 Equipment 10% 450 2015 2016 2017 2018 2019E Terminal Buildings Apron and airfield 25% 53% - 2019 figure is updated to expected prices - Figures in millions of MXP o *MXP 550 million will be allocated to Tijuana for the Processing Terminal, MX

  27. Slide 27: Terminal expansion project

    640 MXP Million o LAST PHASE to be completed in June 2019 o EXTENSION of 3,300 sqm and remodeling of additional 3,200 sqm o 5 REMOTE boarding gates o NEW FOOD COURT with an extension of 1,300 sqm 27

  28. Slide 28: Terminal expansion project

    850 MXP Million o EXPANSION of 8,500 sqm, and remodeling of 17,300 sqm o NEW CHECK-IN AREA with 12 additional counters o 5 NEW BAGGAGE CLAIM BELTS with extended capacity, in substitution of the old ones o NEW SECURITY CHECK POINT with two lanes for CBX passengers o ADDITIONAL and improved space for

  29. Slide 29: Terminal expansion project

    640 MXP Million o NEW BOARDING LOUNGE with 6,500 sqm and 10 remote boarding gates o THREE NEW AIR BRIDGES o 25% EXPANSION of immigration point: 2,300 sqm vs the current 1,800; 20 new automatic immigration kiosks o 1 NEW BAGGAGE CLAIMS BELT o ADDITIONAL and improved commercial areas o CONSTRUCTION co

  30. Slide 30: Terminal expansion project

    48 MXP Million o 30% INCREASE in boarding lounge with 2 additional boarding gates o EXPANDED and completely refurbished security check point: o 1 ADDITIONAL lane o 270 sqm additional o INCREASE in commercial offer from existing 25 sqm to new 192 sqm (+680%) o CONSTRUCTION commencement date: July 201

  31. Slide 31: Terminal expansion project

    55 MXP Million o EXTENSION of 1,100 sqm and renovation of 800 sqm o 70% INCREASE in boarding lounge capacity: 1,200 sqm vs the current 700 sqm o 2 NEW BOARDING GATES. 6 compared with the existing 4 o SECURITY check point extension and refurbishment o 35% INCREASE in baggage claims area o NEW VIP LOU

  32. Slide 32: Financial Highlights

    FINANCIAL HIGHLIGHTS

  33. Slide 33: Revenues, EBITDA and investment 2008-2018

    14 5,264 14 2,243 1 *15 7,556 *15 2,873 *1 16 9,431 16 3,354 1 17 11,053 17 4,731 1 18 18 1 12,683 5,139 08 3,490 0808 1,541 64% 08 541 08 2,238 3,490 08 085.8% 1,541 0 09 3,266 0909 1,199 092,134 3,266 65% 09 09 542 4.5% 09 1,199 0 10 3,716 1010 1,500 10 2,441 3,716 66% 10 10 935 105.6% 1,500 1 11

  34. Slide 34: Historical financial metrics

    *15 7,556 *15 2,873 *15 1,126 16 9,431 16 3,354 16 1,875 17 11,053 17 4,731 17 1,939 18 18 18 12,683 5,139 2,501 08 08 541 2,238 08 5.8% 08 5.5% 09 09 542 2,134 09 4.5% 09 4.2% 10 10 935 2,441 10 5.6% 10 5.2% 11 11 2,597 1,287 11 6.8% 11 6.0% 12 12 983 2,939 12 8.3% 12 7.2% 13 13 681 3,556 13 10.1%

  35. Slide 35: 1Q19 results statement

    1Q18 1Q19 % Change Revenues Aeronautical services 2,360,500 2,631,325 11.50% Non-aeronautical services 749,140 901,324 20.30% Sum of aeronautical and non-aeronautical services 3,109,640 3,532,649 13.60% Improvements to concession assets (IFRIC 12) 298,090 146,487 -50.90% Total revenues 3,407,730 3,6

  36. Slide 36: Mexico and MBJ results 1Q19

    (millions of USD): Mexico MBJ 1Q19 % in USD Pesos Total Revenue (1) 13 31 44 24% 843 Total Expenses 5 15 20 37% 379 EBITDA 8 16 24 19% 464 (1) Excluding the effects of IFRIC12 36

  37. Slide 37: Per-passenger metrics 2007-2019E

    (MXP) (MXP) 223 79 203 211 193 68 71 179 65 158 156 159 62 146 152 54 132 47 51 119 124 38 38 41 33 28 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E (MXP) (MXP) 209 59 190 196 52 52 55 172 180 48 49 50 49 47 49 43

  38. Slide 38: Debt profile and credit ratings

    Standard & Poor’s Floating Fixed Floating Fixed 76% 24% 49% 51% mxAAA Debt Debt / National scale Issued in March 2019 $13,535 $16,728 Moody’s Aaa.mx / National scale A3 / Global scale Issued in March 2019 MXP USD 66% USD MXP Debt 34% 72% 28% Debt $13,535 $16,728 Figures in MXP millions 0.8x Net debt

  39. Slide 39: Maintain healthy financial levels

    Maintain healthy financial levels Net debt to EBITDA: below 2.5x Potential expansions leveraged Capital Structure: 50 / 50 Leveraging CAPEX WACC: below 8.0% Compliant debt covenants Interest coverage: above 5x Sustain debt ratings FFO/debt ratio above 40% Improving WACC Distribution Policy: consiste

  40. Slide 40: Distribution policy and dividend yield

    - Pay all excess of cash above a minimum cash balance (two months of OPEX + the debt service) - Dividend payment 9.0% or capital reimbursement, will take into account the most efficient tax7,000 practice 6,018 ** 8.0% 6,000 7.9% 7.5% 5,256 7.2% 7.0% 4,756 5,000 6.8% 6.0% 3,889 4,000 6.1% 5.3% 3,100

  41. Slide 41: Investments Overseas

    Investments OVEr seas 41

  42. Slide 42: Kingston airport concession

    1.6 million passengers during 2018, growing 2% vs 2017. USD 7.1 million Upfront Fee The passenger profile is comprised mainly of 62% VFR and business. Concession Fee 25 years + 5 On October 10th, 2018, we signed the Concession Period Concession Agreement to modernize and expand the Kingston airport.

  43. Slide 43: Guatemala La Aurora airport opportunity

    Country 2019: - La Aurora International Airport (Guatemala) Regulatory Framework - Pax: 2.8 million - Request for Proposal (“RFP”) hasn’t been published yet Passenger traffic Investment amount Return vs Risk 43

  44. Slide 44: 2019 guidance

    Traffic 7% +/- 1% Aeronautical Revenue 13% +/- 1% Non-aeronautical Revenue 20% +/- 1% Total Revenue 15% +/- 1% EBITDA 14% +/- 1% EBITDA margin 69% +/- 1% CAPEX MXP 2.2 billion 44

  45. Slide 45: Investor Relations Contact

    INVESTOR RELATIONS CONTACT: Gisela Murillo Herrera Investor Relations gmurillo@aeropuertosgap.com.mx +(52) 33 3880 1100 ext. 20294 Alejandra Soto Ayech IR & Financial Plannning asoto@aeropuertosgap.com.mx Saúl Villarreal García Chief Financial Officer svillarreal@aeropuertosgap.com.mx CORPORATE HEAD

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