Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Q2 2022 Earnings Presentation
49 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's earnings presentation, September 2022
Slide 1: Corporate Presentation Second Quarter 2022
CORPORATE PRESENTATION SECOND QUARTER 2022 The future IS BUILT HERE
Slide 2: Table of Contents
Table of Contents 1 Company Overview 3 2 Operational Information 9 3 Revenue Development 16 4 Financial Information 24 5 Master Development Program 2020-2024 34 6 Environmental, Social & Corporate Governance 41 7 New Opportunities 46 C o n s o l i d ate d f i g u re s fo r 2 0 1 5 i n c l u d e i n
Slide 3: Company Overview
> COMPANY OVERVIEW
Slide 4: Our Network 2021
Our Network 2021 Passengers (thousands) 1,094 793 Mexicali Aguascalientes 9,678 Tijuana 2,119 Guanajuato 1,560 Hermosillo 947 368 Los Mochis Morelia 2,582 920 Montego Bay La Paz 830 5,550 Kingston Los Cabos 4,120 Puerto Vallarta -11.8% vs 2019 12,243 Guadalajara 133 Manzanillo 4
Slide 5: GAP's Competitive advantages 2021
GAP’s Competitive advantages 2021 5
Slide 6: 2021 – Outstanding year post pandemic
2021 – Outstanding year post pandemic ➢ 88% recovery of traffic versus 2019, driven by remarkable performance of Tijuana airport ➢ Positive rebalance of Mexican concessions, tariffs enacted in January 2021 ➢ Support to airlines and tenants through discounts and incentives ➢ Highest EBITDA in GAP’s h
Slide 7: The Future is built here
The Future is built here ➢ Expecting robust passenger growth for the coming years: ▪ 28% increase in seat capacity in 2026 compared to 2021 ▪ Increase ~13k in room capacity in leisure destinations ▪ Remittances growth ➢ Developing of second runway in Guadalajara and increase of platforms in most of
Slide 8: Outstanding financial performance 6M22
Outstanding financial performance 6M22 26.6 million 10,633 million MXP Passengers Revenues1 44.5% vs 6M21 60.5% vs 6M21 10.7% vs 6M19 50.9% vs 6M19 3,096 million MXP 7,790 million MXP CAPEX EBITDA, Margin1 73.1% 71.0% vs 6M21 58.1% vs 6M19 3,676 million MXP 1,075 million 4,692 million MX
Slide 9: Operational Information
: = OPERATIONAL INFORMATION
Slide 10: Airport group with biggest market share in Mexico
Airport group with biggest market share in Mexico DURING THE FIRST SIX MONTHS OF 2022 GAP OPERATED 5 OF THE TOP-TEN BUSIEST AIRPORTS IN MEXICO 10 Source: Passenger traffic reports as of June 30, 2022: GAP, OMA, ASUR, AICM & ASA
Slide 11: Passenger traffic evolution by Airport
Passenger traffic evolution by Airport Change Airport 6M22 vs 6M19 21 vs 20 20 vs 19 19 vs 18 18 vs 17 17 vs 16 16 vs 15 Guadalajara 7,101.7 -1.0% 50.7% -45.3% 3.4% 12.1% 12.4% 16.4% Tijuana 5,771.7 34.6% 53.2% -29.2% 13.9% 10.3% 12.2% 30.0% 80.8% Los Cabos 3,453.7 18.9% 81.1% -45.4% 6.9% 6.9% 15.6%
Slide 12: Passenger traffic evolution by Airport
Passenger traffic evolution by Airport Airport 6M22 2021 2020 2019 2018 2017 2016 Guadalajara 7,101.7 12,243.0 8,125.6 14,846.3 14,351.6 12,808.0 11,395.8 Tijuana 5,771.7 9,677.9 6,316.6 8,925.9 7,835.1 7,103.2 6,332.5 Los Cabos 3,453.7 5,549.6 3,064.2 5,609.1 5,249.0 4,909.7 4,248.0 Puerto Vallarta
Slide 13: Market Share 6M22
Market Share 6/22 viva >» 10.0% AEROMEXICO. *7) 17.2% —_ 7.9% American Airlines “¢ 3.9% UNITED By. volaris ~)- AIRLINES PARTICIPATION 42.5% °) INGAP 3.6% ADELTA 6M22 _— 2.8% 7Waska 2.8% Southwests « 9.4% Others 13
Slide 14: Airlines Potential Growth
Airlines Potential Growth ➢ Airlines are increasing their capacity in the Mexican market ➢ +28.4% compared to 2021, potential capacity growth Fleet by 2026e Fleet by 2025e Fleet by 2026e 14 Source: Volaris, Viva and Aeromexico reports
Slide 15: Airlines recovery at GAP Mexican airports 2021 vs 2019
Airlines recovery at GAP Mexican airports 2021 vs 2019 Market Share by Airline 2019-2021 2019 2021 Other Other 14.6% 14.5% American American 4.4% 5.5% Volaris Interjet 43.6% Aeroméxico Volaris 10.4% 11.4% 51.0% Aeroméxico 14.0% VivaAerobus 17.6% VivaAerobus 13.0% 15 Source: GAP, OAG, IR Airlines.
Slide 16: Revenue Development
= REVENUE DEVELOPMENT
Slide 17: Aeronautical Revenues Performance
Aeronautical Revenues Performance ➢ Represents ~77% of total revenues ➢ In the first 6M22 we reached ~97% of the maximum tariffs approved Figures in MXP millions 17
Slide 18: Commercial Revenues
Commercial Revenues Figures in MXP millions 18
Slide 19: Commercial Strategy
Commercial Strategy 1) Improve passenger travel journey - Development of app that concentrates all the airport services - Quality service control 2) Spaces and layouts - More square meters and layouts redesign in Los Cabos, Guadalajara, Puerto Vallarta, Montego Bay - Redefinition of commercial offer
Slide 20: Commercial square meter Growth
Commercial square meter Growth NEW BRANDS Increase in F&B 29,584 commercial SQM 45 52 Los Cabos (2021 vs 2019) 136 +9.2% 310 28,224 GROWTH BY 27,090 AIRPORT 2,494 SQM RETAIL Montego Bay 1,951 2019 2020 2021 *F&B, Retail, Car Rental and Duty Free SJD GDL MLM PVR OTHERS 20
Slide 21: Total commercial areas Expansion
Total commercial areas Expansion Commercial square meters 2019 2020 2021 2022 e 16% Aguascalientes 487 544 677 677 Guanajuato 1,031 1,545 1,642 1,705 Guadalajara 10,119 10,213 10,084 10,674 Hermosillo 1,162 1,162 1,228 1,228 La Paz 497 497 586 586 Los Mochis 190 190 266 266 Morelia 150 150 352 352 M
Slide 22: Expanding direct Operation 2022
Expanding direct Operation 2022 FBO Los Cabos Ampliación de 5,019m2 6,078m2 7,403m2 + 87 Aircraft parking positions Plataforma en ejecución + 2 Aircraft parking positions for helicopters + 99,400 sqm Branding strategies for “Primesky” (GAP brand) Additional Parking Spaces Guadalajara – One this year
Slide 23: Commercial Revenues 6M22
Commercial Revenues 6M22 Change Change 6M19 6M21 6M22 22 vs 19 22 vs 21 Businesses operated by third parties: Duty-free 260,140 222,438 341,795 31.4% 53.7% Food and beverage 234,568 203,829 373,749 59.3% 83.4% Retail 186,767 165,662 296,652 58.8% 79.1% Car rentals 184,247 175,653 262,211 42.3% 49.3%
Slide 24: Financial Information
: = FINANCIAL INFORMATION
Slide 25: Historical Sustained Growth
Historical Sustained Growth EBITDA TOTAL REVENUES1 MXP MILLIONS MXP MILLIONS EBITDA1 MARGIN NET INCOME MXP MILLIONS 25 1 Excluding IFRIC 12
Slide 26: Trend per passenger
Trend per passenger AERO REVENUE PER PAX NON-AERO REVENUE PER PAX MXP MXP EBITDA PER PAX COST OF SERVICES PER PAX MXP MXP 26
Slide 27: Historical sustained growth – Operating Cash Flow
Historical sustained growth – Operating Cash Flow ➢ Noteworthy liquidity recovery ➢ Very resilient business model +35.9% 27 Figures expressed in MXP millions
Slide 28: Key financial Drivers & Financial Targets
Key financial Drivers & Financial Targets Financial Drivers Financial Targets ➢ Maintain healthy financial levels ➢ Net debt to EBITDA: below 3.0x ➢ Preserve liquidity ➢ Capital structure: 70/30 ➢ Optimize operational leverage ➢ WACC: below 9.0% ➢ Comply with debt covenants ➢ Maintain investment gra
Slide 29: EBITDA in USD 6M22
EBITDA in USD 6M22 USD (millions): Mexico Jamaica 6M22 % over the total MXN (millions) Total Revenue (1) 28 82 110 21% 2,240 Total Expenses 10 40 50 35% 1,016 EBITDA 18 42 60 16% 1,224 1 Excluding IFRIC 12 29
Slide 30: Current Debt profile as of June 2022
Current Debt profile as of June 2022 Variable 21% USD Fixed Total Debt MXP Total Debt 16% 84% 79% MXP 31,125 MXP 31,125 Net Debt to EBITDA ratio 1.2x (million) Aaa.mx – National Scale mxAAA– National Scale Outlook: Stable Outlook: Stable Issued on August 19, 2022 Issued on August 19, 2022 30
Slide 31: Debt Maturity 2022-2033
Debt Maturity 2022-2033 USD 191* (Figures in MXP millions) 31 Exchange rate as of June 30, 2022 of $19.9847
Slide 32: Debt Covenants
Debt Covenants NET DEBT EBITDA RATIO INTEREST DEBT SERVICE 32
Slide 33: Shareholders' Distributions
Shareholders’ Distributions ➢ Pay all excess of cash above a minimum cash balance (two months of OPEX + the debt service) ➢ Dividend payment and capital reimbursement, considering the most efficient tax practice Repurchase Program 2,000 3,000 e Payout Ratio 83.5% 72.8% 100.0% 66.7% 69.7% 112.9% 53.9
Slide 34: Master Development Program 2020-2024
MASTER DEVELOPMENT PROGRAM 2020-2024
Slide 35: Extraordinary Review in Mexico Post-COVID 19
Extraordinary Review in Mexico Post-COVID 19 s r MXP 6,029 million in CAPEX 7.35% Tariff = Operating cash flow Maximum Tariff Master Development 7.35% Program 14.88% 219.49 208.77 21,832 -27.6% 179.56 15,802 MXP MXP MILLIONS MDP** 2020-2024 MDP 2020-2024 MT* 2019 MT 2020 MT 2020 Extraordinary Review
Slide 36: MDP Mexico 2020-2024
MDP Mexico 2020-2024 4,124 3,518 2,937 2,696 2,528 MXP MILLIONS 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 36
Slide 37: Guadalajara Second Runway and Second Terminal
Guadalajara 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 continue in the next five year-period) ➢ Opportunity to
Slide 38: Tijuana Terminal Processor Building
Tijuana 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 (+39,500 sqm) ➢ Possibility to develop international routes from/to Asia, U.S. and Latin America ➢ Total inve
Slide 39: Puerto Vallarta New Terminal Building
Puerto Vallarta New Terminal Building ➢ New terminal building under the concept “Net-Zero” energy ➢ 8 additional aprons ➢ 15 additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Total investment of ~MXP 3,026 millions* ➢ +42,000 sqm ➢ Construction will start in 2022 and conclud
Slide 40: Los Cabos Terminal expansion
Los Cabos Terminal expansion ➢ Expansion of international Terminal Building (+10,500 sqm) ➢ 28 additional aprons ➢ Two additional boarding gates ➢ Opportunity to develop more commercial offer ➢ Total investment of MXP ~ 1,579 millions* ➢ Construction already commenced and will conclude during 2022 4
Slide 41: Environmental, Social & Corporate Governance
ENVIRONMENTAL, SOCIAL & CORPORATE GOVERNANCE
Slide 42: Sustainability Achievements
Sustainability Achievements National Registry of Emissions. UN Global Compact Environmental Management Reporting annually in this registry and GAP is adhered to the Global Compact, System ISO 14001-2015. verify every 3 years, the consolidated supporting its ten principles, since 2020. 12 airports ce
Slide 43: Sustainability Achievements
Sustainability Achievements Expansión Socially Responsible Bloomberg Gender-Equality Index Super Empresas - Expansión ISO 9001:2015 Quality Company Since January 2022, we have been We participate in this ranking, Management System We participated for the 13th included in this index, due to our posit
Slide 44: Social Commitments
Social 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 an
Slide 45: Corporate Governance
Corporate 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
Slide 46: M&A
M&A
Slide 47: M&A – Drivers for Potential Investments
M&A – Drivers for Potential Investments Country Risk – Analysis of country risk premium, its reference rate, the FX risk Regulatory Framework – General conditions of the Concession Agreement, laws applicable to the concession and revenue system Passenger traffic – Analysis of passenger profiles (VFR
Slide 48: Guidance 2022
Guidance 2022 GUIDANCE 2022 vs 2021 Traffic 26% - 30% Aeronautical Revenue 34% - 38% Non-aeronautical Revenue 31% - 35% Total Revenue 33% - 37% EBITDA 33% - 37% EBITDA Margin 71% +- 1% CAPEX MXP 8.0 billion 48
Slide 49: Investor Information
Investor Information Saúl Villarreal Corporate Headquarters Chief Financial Officer Av. Mariano Otero No. 1249-B 6th floor svillarreal@aeropuertosgap.com.mx Torre Pacífico, Rinconada del Bosque Guadalajara, Jalisco, México. Zip Code 44530 Alejandra Soto +(52) 33 3880 1100 IRO & Corporate Finance Dir
Grupo Aeroportuario del Pacífico (GAP) — Q2 2022 Earnings Presentation on 6ix