Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Central North Airport Group — Q3 2018 Earnings Presentation
32 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Oct 25, 2018
Slide 1: OMA Announces Third Quarter 2018 Operating and Financial Results
OMA Announces Third Quarter 2018 Operating and Financial Results Monterrey, Mexico, October 24, 2018 — Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated financial and operating results for
Slide 2: Summary financial and traffic table
Passenger Traffic 5201, 5750.10.5. 14652, 16035 9a ‘Aeronautica! Revenues 4iss 1355001853257 3.82875 Non-Aeronautica! Revenues ee ee ee ee ‘Aeronautical + Non-Aeronautical Revenues 453244778158 4)323 5,023 16.2 Construction Revenues 352.00 988 O58). 848. 863... (6-4) Total Revenues 1886196744 5242 5
Slide 3: Investor Relations
Investor Relations: Chief Financial Officer Rutfo Pérez Pigo del Castilo ui Emmanuel Camacho Thierry +50 (1) 9625 4200 +52 (83) 8625 4308 ‘perezpllego@oma.ser0 90 O@ /OMAeropuertos scomacho@oma.sere www.oma.aero
Slide 4: 3Q18 Results Summary
OMA will hold its 3Q18 earnings conference call on October 25, 2018 at 11 am Eastern time, 10 am Mexico City time. Call 1-877-407-9208 toll-free from the U.S. or 1-201-493-6784 from outside the U.S. The conference ID is 13684397. The conference call will also be available by webcast at http://ir.oma
Slide 5: 3Q18 Operating Results
3Q18 Operating Results Operations, Passengers, and Cargo Airlines opened 3 routes during the quarter, including one domestic route and 2 international seasonal routes, and 4 routes were cancelled. However, the number of available seats offered increased 12.5% compared to 3Q17, as a result of more fr
Slide 6: Total passenger traffic increased
Total passenger traffic increased 10.5%. Of total traffic, 89.7% was domestic and 10.3% was international. Domestic passenger traffic increased 11.4%. Ten airports increased traffic. The airports with the largest increases were: § Monterrey , mainly on the Mexico City, Cancún, Guadalajara, and Tijua
Slide 7: OMA
OMA
Slide 8: Commercial Operations
Commercial Operations OMA implemented 38 commercial initiatives in the quarter. The commercial space occupancy rate in the passenger terminals was 99.0%.
Slide 9: Hotel Services
Hotel Services § The NH Collection Terminal 2 Hotel had an 84.0% occupancy rate, an increase of 0.7 percentage points. The average room rate was Ps. 2,182 per night. § The Hilton Garden Inn had a 79.2% occupancy rate, an increase of 2.0 percentage points, with an average room rate of Ps. 2,150. Frei
Slide 10: Industrial Services
Industrial Services § OMA VYNMSA Aero Industrial Park: Rental income reached Ps. 6.6 million. In 3Q18, two new warehouses started generating revenues. Consolidated Financial Results Revenues Aeronautical revenues increased 16.5%, mainly as a result of higher traffic volumes and an increase in flight
Slide 11: OMA
OMA
Slide 12: Diversification revenues grew
Diversification revenues grew 10.2%.
Slide 13: Construction revenues
Construction revenues represent the value of improvements to concessioned assets. They are equal to construction costs and generate neither a gain nor a loss. Construction revenues and costs are determined based on the advance in the execution of projects in accordance with the airports’ Master Deve
Slide 14: OMA
OMA
Slide 15: The major maintenance provision
The major maintenance provision was Ps. 85 million. The outstanding balance of the maintenance provision as of September 30, 2018 was Ps. 955 million. The airport concession tax increased 16.7% as a result of the growth in revenues, while the technical assistance fee increased 25.4%. As a result of
Slide 16: OMA
OMA
Slide 17: Operating Income and Adjusted EBITDA
Operating Income and Adjusted EBITDA Operating income rose 25.5%, with an operating margin of 55.5%. Adjusted EBITDA increased 23.8%, with an Adjusted EBITDA margin of 71.4%.
Slide 18: Financing Income, Taxes, and Net Income
Financing Income, Taxes, and Net Income Financing Expense was Ps. 78 million.
Slide 19: Taxes and net income
Taxes were Ps. 287 million, and the effective tax rate was 28.4%. Consolidated net income increased 25.1% to Ps. 725 million. Earnings per share , based on net income of the controlling interest, increased 25.0% to Ps. 1.84; earnings per ADS increased 18.6% to US$0.78. Each ADS represents eight Seri
Slide 20: OMA
OMA
Slide 21: MDP Investments by airport
Airport Project MDP Investments Durango Expansion ofgeneral aviation platform Started Mazatlan Minor rehabilitation of runway Started Tampico Minor rehabilitation of runway Started Acapulco Commercial aviation platform drainage improvements In Process Tampico Major rehabilitation of taxiways In Proc
Slide 22: Debt
Debt
Slide 23: Derivatives and Cash Flow Statement
Derivatives As of the date of this report, OMA has no financial derivatives exposure. Cash Flow Statement In the nine months of 2018, cash flows from operating activities increased 24.7% to Ps. 2,825 million. The increase resulted mainly from higher operating income. Investing activities used cash o
Slide 24: OMA
OMA
Slide 25: Material Events
Material Events OMA informs the retirement of its Chief Executive Officer. On October 1st, 2018, OMA announced that after twenty years of an invaluable career in the Company, Mr. Porfirio Gonzalez decided to step down from his position as Chief Executive Officer. The Board has initiated a selection
Slide 26: Terminal Passengers by airport
(Terminal Passengers-Excludes Transit Passengers) Total Passengers 3017 3018 %Var oma7 omig_ Var Acapulco 161,551 181,983 26 522,905 563,053, ra Cludad Juarez 326,626 365,962 20 81,121 1,012,135 14.9 Cutiacén 483,673 558,149 154 1,380,035, 1680334 (28 Chihuahua 372,232 430,824 157 1,056,028, 41,163,
Slide 27: Terminal Passengers by airport
(Terminal Passengers-Excludes Transit Passengers) Total Passengers 3017 3018 %Var oma7 omig_ Var Acapulco 161,551 181,983 26 522,905 563,053, ra Cludad Juarez 326,626 365,962 20 81,121 1,012,135 14.9 Cutiacén 483,673 558,149 154 1,380,035, 1680334 (28 Chihuahua 372,232 430,824 157 1,056,028, 41,163,
Slide 28: Unaudited Consolidated Statement of Comprehensive Income
Grupo Aeroportuario del Centro Nort Unaudited Consolidated Statement of Comprehensive income (Thousands of Pesos) 3017 3018 %Var 9mi7 oMis__%Var Revenues Aeronautical Revenues 1,163,441 1,355,473 16.5 3,256,860 3,828,508 17.6 Non-Aeronautical Revenues 368,475 418,380 13.5.__2,066,301 1,194,871 12.1
Slide 29: Cash flow statement
(Thousands of Pesos) AsofSeptember 30, 2017 2018 s6Var. Operating Activities Income Before Taxes 2,101,737, 2,906,930 383 Change in the value of cash and cash equivalents for fair value 137,374 138,035, 05 Depreciation and Amortization 221,087 257,943, 167 Major Maintenance Provision 200,205 183,755
Slide 30: Statement of changes in stockholders equity
Grupo Aeroportuario del Centro Norte, SA.B. de GV. Unaudited statement ofchangesin Sockholéers Equity Additional sae Non otal umberof captalstock —Paif-In Retained == Repurchawe © Labor Ccontrlling Stockholder's Shares___Nomind __capitd__eamings Reserve __Obligations__—_mterest equity salance ssofDa
Slide 31: Results by airport
Thousands ofPesos} Monterey 3017 sais ous emis culiacén sax7 sai omy ows Total Revenues (55,750 904645 —-2255,717 2,484,608 TotalRevenues sus 152,386 372214 462,408 Aeronautical Revenues 580,156 «677274 «116972 4,812,420 © AeronguticalRevenues 110,114 135,092 290512 401,987 Non-seronaticalRevene 141
Slide 32: Analyst coverage
Company Actinver Cacade Bolsa Bank of America Mertll Lynch Banorte-DE BarclaysBank PLC BBVA Bancomer Bradesco BB! Citigroup Credit sulsse Goldman Sachs Grupo BursétiI Mexicano (GBM) GrupoFinanclerointeracclones Name Pablo Abraham Alan Maclas José Espitia Pablo Monsivdis Mauricio Heménde2Prida Leaner
Central North Airport Group — Q3 2018 Earnings Presentation on 6ix