Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q3 2020 Earnings Presentation
37 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, October 2020
Slide 1: Third Quarter 2020 Results
THIRD QUARTER 2020 RESULTS GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V. 1
Slide 2: Forward-looking information and statements
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 ma
Slide 3: About the Company
ABOUT Who we are ABOUT • More than 800 employees committed to THE COMPANY providing aeronautical, commercial and real state services of excellence to our passengers THE COMPANY and clients. Our Businesses • 13 Airports in the central-north region of Mexico, serving 23 million passengers in 2019. • 2
Slide 4: Company Overview, Aeronautical, Non-Aeronautical, Financial Results
Company Overview Value Proposition | Historical Performance | Shareholder Structure | Board of Directors and Management Team | Operations & Sustainability Aeronautical Business Connectivity & New Routes | Passenger Traffic | Airline Participation | Aeronautical Revenue 3Q20 Non-Aeronautical Business
Slide 5: Company Overview
Company Overview Value Proposition Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability 5
Slide 6: Cost and expenses efficiency
Cost and Constant Healthy Maximizing Experienced expenses growth in balance value board of efficiency Adjusted sheet distribution directors and EBITDA and management High margins team potential portfolio of Sustained Visibility in Successful Commitment to airports and passenger aeronautical commerci
Slide 7: Historical Performance
Company Overview Historical Performance CAGR 2012-LTM Sep20 Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) PAX 1.1% Revenues¹ 6.9% Adjusted EBITDA 9.4% 28% 72% % Adj. EBITDA2 43.6% 50.8% 53.6% 54.6% 54.7% 59.1% 63.8% 66.0% 70.0% 73.5% 64.5% All figures in millions, inclu
Slide 8: Shareholder Structure
Company Overview Shareholder Structure 14.7% SETA 1 Shares 85.3% Public Float B Shares Market Capitalization 2 Ps. Bn. $39.6 / USD Bn. $1.8 Note: As of September 30, 2020 ¹ Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA - 12.8% BB Shares and 1.9 B Shares) ² BMV Price Ps.101.55 as of Septe
Slide 9: Board of Directors & Management Team
Company Overview Board of Directors & Management Team Experienced Management Team (Average time with OMA: 7 years) Ricardo Dueñas *2018 Chief Executive Officer Ruffo Pérez Pliego *2018 *2018 Chief Financial Officer Adriana Díaz General Counsel Héctor Cortés *2004 *2001 Chief Commercial Officer Enriq
Slide 10: Aeronautical Business
Aeronautical Business Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenue 3Q20 10
Slide 11: Passenger Flows and Top Routes 9M20
Aeronautical Business Passenger Flows and Top Routes 9M20 Total PAX Domestic PAX International PAX Top Routes* Passenger traffic started to show recovery signs since June, 2020. MTY – MEX (-47%) 01 881 MTY - CUN (-49%) 02 03 819 CUL - TIJ (-33%) 62 CUU - MEX (-50%) 04 JAN-20 FEB-20 MAR-20 APR-20 MAY
Slide 12: Passenger Traffic
Aeronautical Business Passenger Traffic HIGHLIGHTS PASSENGER GROWTH PASSENGER SHARE (%) YoY 9M20 Passenger Growth by type of airport 9M20 3Q20 Millions ∆% Total PAX 2.3 -62.4 Domestic 2.2 -60.7 International 0.2 -76.8 9M20 Millions ∆% Total PAX 7.8 -54.9 Domestic 6.9 -54.7 International 0.9 -56.7 Pa
Slide 13: Airline Participation (3Q20)
Aeronautical Business Airline Participation (3Q20) Total PAX 93% 88% 7% 12% 2.3 mm Domestic International 22.9 mmPassengers Passengers Viva Viva American 42% -51% 39% -58% 41% -51% Airlines Aerob… Aerobus Viva -12% 22% Volaris 29% -52% Volaris 30% -51% Aerobus Volaris 16% -65% Grupo Grupo 20% -64% 2
Slide 14: Aeronautical Revenues 3Q20
Aeronautical Business Aeronautical Ps.594mm -60.1% 72% of Total Revenue* Revenues 3Q20 Ps. 257.2/PAX *Total Revenues excluding Construction Revenues Domestic Passenger Charges International Passenger Charges Airport Services Ps.399mm -60.3% Ps.77mm -73.8% Ps.119mm -38.9% 67% of 13% of 20% of Aeronau
Slide 15: Non-Aeronautical Business
Non-Aeronautical Business Diversification Revenues Non-Aeronautical Revenues 3Q20 Historical NAR Growth 15
Slide 16: Diversification Revenues
Non-Aeronautical Business Diversification Revenues NHT2 OMA CARGA HILTON MTY REAL ESTATE COLLECTION GARDEN INN INDUSTRIAL PARK 8.8% of NAR | 287 Rooms 19% of NAR 2.2% of NAR | 134 Rooms 5.4% of NAR 1.8% of NAR Avg. Room Rate: Avg. Room Rate: -12.8% revenues in 3Q20 +25.5% revenues in 3Q20 -5% revenu
Slide 17: Non-Aeronautical Revenues 3Q20
Non-Aeronautical Ps.230mm -50.5% Revenues 3Q20 28% of Total Rev.* *Total Revenues excluding Construction Revenues Commercial Activities Diversification Activities Complementary Activities Ps.98mm -58.7% Ps.87mm -43.4% Ps.45mm -39.2% 42% of 38% of 20% of Non-aeronautical Revenue Non-aeronautical Reve
Slide 18: Historical Non-Aeronautical Revenue Growth
Non-Aeronautical Business Historical Non-Aeronautical Revenue Growth NAR – Commercial/PAX NAR – Diversification/PAX NAR – Complementary/PAX NAR PAX 1 CAGR 2012 - LTM Sep20 • PAX ¹ +1.1% • NAR +8.6% • NAR/PAX +7.5% +94% +9% 1 Passenger traffic for the last twelve months as of September 30, 2020 18
Slide 19: Financial Results
Financial Results Highlights 3Q20 Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 19
Slide 20: Highlights 3Q20
Financial Highlights Highlights 3Q20 Consolidated Net Income Ps. 69mm -91.9% Revenues* Cost of Services and G&A Adjusted EBITDA** Ps. 825mm -57.9% Ps. 332mm -11% Ps. 432mm -70.2% Ps. 356.8 / PAX (+12.1%) Ps. 143.6 / PAX (+136.8%) Ps. 186.8 / PAX (-20.8%) Aeronautical -60.1% 3Q20 Margin 52.3% Non-Aer
Slide 21: Cost and Efficiency
Financial Results Cost and Efficiency Cost and expense control has contributed to EBITDA growth Cost Control Strategy Adj. EBITDA / PAX AR+NAR / PAX Total Op. Costs and Exp./ PAX 1 CAGR 2012 - LTM Sep20 220 .0 Seek operational leverage 200 .0 Energy consumption 180 .0 8.2% Development of a culture o
Slide 22: Balance Sheet
Financial Results Balance Sheet Strong Financial Position* Low Leverage Ps.Million Net Debt / Adjusted EBITDA 1 Debt Profile* Capital Structure Evolution No significant debt maturities until June 2021 Total Debt | Shareholders’ Equity (Book Value) USD 1% Short Term 35% Long Term MXN 65% 99% 1 *Infor
Slide 23: Profitability Indicators
Financial Results Profitability Indicators CAGR 2012 - LTM Sep20 Return on Assets (ROA) Return on Equity (ROE) 40.0 35.0 • ROA +1.2% 33.6 32.6 30.0 • ROE +2.3% 28.1 29.6 20.8 25.0 18.8 18.4 18.7 16.8 15.3 15.1 20.0 12.8 13.9 10.9 9.9 1 5.0 1 0.0 8.2 8.3 9.0 5.0 - 2012 2013 2014 2015 2016 2017 2018 2
Slide 24: Value Distribution
Financial Results Value Distribution Dividend or Capital Reimbursement Dividend Yield** Payour Ratio (million pesos)* Percentage Percentage 1,600 1,600 1,600 1,400 1,200 1,200 1,200 8.6 9.0 6.9 225 8.0 7.0 17 5 6.0 4.4 4.2 4.5 3.9 3.9 5.0 12 5 4.0 3.0 147 117 75 2.0 100 113 85 75 56 1 .0 25 - 2012 2
Slide 25: MDP & Maximum Rates
MDP & Maximum Rates Investments 2016-2020 New Terminals Maximum Rates 25
Slide 26: Investments 2016-2020
MDP & Maximum Rates Investments 2016-2020 Upcoming negotiation of Master Development Program for 2021-2025 period in 2H20 Total Committed Investment MTY, 28% Ps.5,999mm pesos of Dec. 31, 2019 2,50 Committed Actual / Expected 100% 90 % 2,00 80 % 1,748 1,677 1,575 70 % 1,377 1,276 1,284 1,264 1, 5 00
Slide 27: Investments 2016-2020: Committed Investment and Projects
MDP & Maximum Rates Investments 2016-2020 Total Committed Investment Most important projects Ps.5,999mm Terminal Expansion pesos of Dec. 31, 2019 Other Ciudad San Luis 6% Monterrey Chihuahua Tampico Juárez Potosí Operational Infrastructre Expansion 11% Terminal Expansion & New Terminals Operational
Slide 28: Terminal Expansions: TA-MTY Airport Project
MDP & Maximum Rates Terminal Expansions:TA-MTY Airport Project Terminal C Terminal A Terminal B Terminal A: 5.3 CAPACITY Terminal B: 3.4 (million passengers) Total Area 61,520 m2 Terminal C: 3.1 Total: 11.8 28
Slide 29: Terminal A - Monterrey Airport Project 1st Phase
MDP & Maximum Rates Terminal A - Monterrey Airport Project 1 Phase st Expansion of the public áreas and Terminal A and Construction of Wing #1 Wing #1 Terminal C Terminal A Public Area of TA Terminal B CAPACITY (million passengers) *Expected start of operations Terminal A: 5.3 CAPACITY Terminal B: 3
Slide 30: Terminal A - Monterrey Airport Project 2nd Phase
MDP & Maximum Rates Terminal A - Monterrey Airport Project 2 Phase nd Construction of Wing #2 and Expansion of Both Public and Restricted Areas Wing #1 Wing #2 General Espansion of Terminal A Terminal A Terminal B *Expected start of operations Terminal A: 11.6 91,696 m2 CAPACITY Terminal Terminal B:
Slide 31: New Terminal: Tampico Airport
MDP & Maximum Rates New Terminal: Tampico Airport Second half 2021* *Expected start of operations 6,833m2 7,981m2** 0.8mm PAX 1.1mm Investment Ps.175 mm Total Area Terminal building, m2 +17% Capacity Commercial spaces, m2 +25% PAX +38% **New Terminal net surface 31
Slide 32: New Terminal: Reynosa Airport
MDP & Maximum Rates New Terminal: Reynosa Airport Pending Inauguration 2,608m2 7,590m2* 0.3mm PAX 0.9mm Investment Ps.325 mm Total Area Terminal building, m2 Capacity +191% Commercial spaces, m2 +187% PAX +200% *New Terminal net surface 32
Slide 33: Maximum Rates
MDP & Maximum Rates Maximum Rates MT Recovery Maximum Tariffs 2020 (2) 99.0% 98.3% WEIGHT AVG(1) 97.8% 94.5% Ps.257 13 AIRPORTS 13 Airports 2017 2018 2019 Sep 30, 2020 The maximum rate for each succeeding year through 2020 will be adjusted by inflation minus an efficiency factor of 0.70% 1 Weighted
Slide 34: Outlook and Industry
Outlook and Industry Industry trends Airline Fleets 34
Slide 35: Industry Trends
Outlook and Industry Industry Trends Air Industry has Low Penetration Projected in Mexico* Passenger Traffic CAGR 2017-2037** Flights per capita per year 2.7 Domestic Traffic, except Mexico-USA 2.4 4.8% 4.5% 4.6% 3.4% 2.4% 1.0 2.0% 0.5 0.5 0.4 Flights per capita per year % Passenger Traffic CAGR Arg
Slide 36: Airline Fleets and Available Seats
Outlook and Industry Airlines Fleets Historical Airline Fleets and Available Seats 2016 2017 2018 2019 3Q20 Aircraft 133 131 130 125 101 78 84 84 77 81 84 70 69 71 36 40 24 31 21 14 6 10 11 11 11 NA NA Available seats* 6.7 7.1 0.7 18.0 17.8 10.7 11.9 11.9 11.9 14.6 14.9 5.8 17.4 8.7 NA 12.2 12.5 13.
Slide 37: Chief Financial Officer and Investor Relations contacts
Chief Financial Officer Ruffo Pérez Pliego del Castillo rperezpliego@oma.aero +52.81.8625.4300 GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V. Investor Relations Luis Emmanuel Camacho Thierry ecamacho@oma.aero +52.81.8625.4308 37
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. — Q3 2020 Earnings Presentation on 6ix