Grupo Aeroportuario Del Pacifico Sab De Cv Class B · BMV:GAP/B
Grupo Aeroportuario Del Pacifico Sab De Cv Class B — Investor Day (2014)
57 slides from Grupo Aeroportuario Del Pacifico Sab De Cv Class B's investor day presentation, Mar 10, 2014
Slide 1: Fernando Bosque, Chief Executive Officer
Fernando Bosque Chief Executive Officer
Slide 2: Strategic Overview
Strategic Overview Grupo sar2014 AR Seas
Slide 3: Mexican Airports – Total Passengers
Mexican Airports – Total Passengers Mexican Airport Groups Mexican Airport Total Passengers Groups 2013 AICM 31,532,331 14.2% GAP 23,173,384 33.6% ASUR 21,141,601 OMA 13,292,473 OTHERS 4,647,078 22.5% TOTAL MEXICO 93,786,867 24.7% Page 3
Slide 4: Total Traffic in Mexico: evolution of domestic and foreign carriers
Total Traffic in Mexico: evolution of domestic and foreign carriers 70.0% 61.5% 62.2% 59.5% 60.0% 50.0% 40.0% 29.1% 30.0% 27.0% 26.4% 20.0% 10.0% 4.2% 4.0% 4.0% 3.8% 3.6% 3.4% 3.4% 3.8% 4.0% 0.0% Mexican Total American Total Canadian Total European Total Central and Latinamerican Total Share 2011 Sh
Slide 5: Strategic Outlook – Mexican Airport Industry
Strategic Outlook – Mexican Airport Industry • AICM (MEX) • Mexico City Airport (growth of 6.9% in 2013, for a total 31 million passengers) is reaching its maximum capacity. • Some slot restrictions were announced last October. • Its hub operation depends in their capacity to grow in high density ro
Slide 6: What to Expect from the Airlines
What to Expect from the Airlines • Mexican Carriers • VivaAerobus, Aeromexico and Volaris will expand their seat capacities by 1.8 million in our network. • Interjet new SuperJet 100’s are ideal for regional and medium-density markets • Congestion at Mexico City airport limit potential for additiona
Slide 7: Mexican Carriers will add 9.4% seats capacity in 2014
Mexican Carriers will add 9.4% seats capacity in 2014 2007 2013 December 2014 Forecast 2014 vs 2013 Aircraft Total Seats Aircraft Total Seats Aircraft Total Seats Aircraft Total Seats Interjet 11 1,650 45 6,522 52 7,350 15.6% 12.7% Vivaaerobus 5 750 18 2,678 22 3,300 22.2% 23.2% Grupo Aeroméxico 112
Slide 8: Evolution of total traffic and perspectives for 2014
Evolution of total traffic and perspectives for 2014. 26.0 24.9 24.0 23.6 OTHERS 188,363 23.2 22.0 22.3 21.3 HMO 100,194 Millions 20.5 20.0 20.2 20.2 19.1 19.3 BJX 125,146 18.0 PVR 168,124 16.0 SJD 183,336 14.0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E TIJ 382,604 GDL 579,921 0 100,000 200,
Slide 9: Volaris and Aeromexico: the key players in GAP traffic
Volaris and Aeromexico: the key players in GAP traffic Total Passenger Share Sunwing 0.9% Frontier 0.6% Magnicharters 1.0% Others 4.5% What to expect in 2014? West Jet 1.4% Delta 2.0% - Volaris will continue 7.2% 2.9% offering a wide range of 4.3% domestic and international VFR 5.4% markets - Aerome
Slide 10: Revenue Strategies
Revenue Strategies Grupo sar2014 AR Seas
Slide 11: 2014 Revenue Growth
2014 Revenue Growth In thousands of Mexican Pesos 227,413 5,364,427 349,906 4,787,108 2013 Revenues Increase in Increase in Non 2014 Expected Aeronautical Aeronautical Revenues Revenues Revenues Page 11
Slide 12: Historic Revenue Mix
Historic Revenue Mix 100% 90% 80% 70% 75.5% 73.9% 77.7% 78.9% 76.9% 60% 82.4% 81.5% 81.4% 80.9% 79.1% 79.6% 85.0% 90.2% 88.6% 91.9% 50% 40% 30% 20% 24.5% 26.1% 22.3% 21.1% 23.1% 10% 17.6% 18.5% 18.6% 19.1% 20.9% 20.4% 15.0% 9.8% 11.4% 8.1% 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 20
Slide 13: Non-aeronautical revenues evolution 2006-2014
Non-aeronautical revenues evolution 2006-2014 Each year compared to year 2006 160.0% 140.0% 143.0% 110.4% 120.0% 100.0% 83.1% 80.0% 53.3% 60.0% 44.3% 37.4% 38.3% 40.0% 22.7% 20.0% 13.0% 21.4% 14.9% 8.5% 3.8% -1.4% -1.5% 0.0% 2006 2007 2008 2009 -6.0% 2010 2011 2012 2013 2014E -20.0% Passenger Growth
Slide 14: How non-aeronautical revenues are growing?
How non-aeronautical revenues are growing? 2012 2013 Change Real estate activities Leasing of space 126,478 151,204 19.5% Car rentals 92,277 101,114 9.6% Recovery of Food and beverage operations 86,010 103,138 19.9% costs Retail operations 80,288 93,468 16.4% 8.1% Duty free operations 86,376 115,564
Slide 15: Commercial Revenues Ratios
Commercial Revenues Ratios Ratio: Revenue per Total Passenger 2013 Los Mochis $17.3 La Paz $22.0 Mexicali $25.6 Morelia $26.3 Hermosillo $28.0 Manzanillo $29.9 Tijuana $30.5 Aguascalientes $35.3 Guanajuato $36.7 Guadalajara $44.5 Puerto Vallarta $55.2 Los Cabos $88.6 0.00 10.00 20.00 30.00 40.00 50.
Slide 16: Non-aeronautical revenue development 2000-2014
Non-aeronautical revenue development 2000-2014 Commercial Revenue per Passenger 60.0 $49.9 50.0 CAGR 00 VS 14E: 15.35% $46.4 CAGR 11 VS 14E: 8.76% $44.0 $38.8 40.0 $36.7 $36.5 $31.6 30.0 $26.6 $24.9 $23.5 $20.5 20.0 $15.4 $10.5 $9.1 10.0 $6.8 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201
Slide 17: Commercial revenues ratios evolution (by airport)
Commercial revenues ratios evolution (by airport) $96 Los Cabos $89 $81 $61 Puerto Vallarta $55 $57 $50 2014 Est GAP (12 Airports) $46 $44 2013 2012 $47 Guadalajara $44 $43 $33 Tijuana $31 $27 $- $20 $40 $60 $80 $100 $120 Mexican Pesos per passenger Page 17
Slide 18: Main direct commercial operations: revenues and EBITDA – Parking
Main direct commercial operations: revenues and EBITDA In thousands of Mexican Pesos Parking 2013 EBITDA: 80% 300,000 246,732 250,000 220,783 193,550 200,000 169,602 150,000 100,000 50,000 - 2011 2012 2013 2014 est Page 18
Slide 19: Main direct commercial operations: revenues and EBITDA – Advertising
Main direct commercial operations: revenues and EBITDA In thousands of Mexican Pesos Advertising 2013 EBITDA: 79% 120,000 99,141 100,000 87,304 76,206 80,000 54,031 60,000 40,000 20,000 - 2011 2012 2013 2014 est Page 19
Slide 20: Main direct commercial operations: revenues and EBITDA – VIP Lounges
Main direct commercial operations: revenues and EBITDA In thousands of Mexican Pesos VIP Lounges 2013 EBITDA: 59% 50,000 38,435 40,000 30,000 24,243 20,000 10,497 10,000 272 - 2011 2012 2013 2014 est Page 20
Slide 21: Our VIP Lounge network is growing fast
Our VIP Lounge network is growing fast 160,000 >150,000 140,000 120,000 116,184 Annual customers 100,000 Tijuana Hermosillo 80,000 Puerto Vallarta 60,000 53,658 Guadalajara 40,000 Cabos 20,000 3,717 0 2011 2012 2013 2014 * * Estimate Page 21
Slide 22: Business/VIP Lounges
Business/VIP Lounges Los Cabos Terminal 2 Guadalajara Tijuana Puerto Vallarta Page 22
Slide 23: Main direct commercial operations: revenues and EBITDA – Aeromarket
Main direct commercial operations: revenues and EBITDA In thousands of Mexican Pesos Aeromarket (Convenience stores) 2013 EBITDA: 41% 60,000 48,058 50,000 40,000 30,000 20,000 16,087 10,000 1,401 - 2012 2013 2014 est Page 23
Slide 24: Aeromarket Convenience Store Chain - Stores Open
Aeromarket Convenience Store Chain - 6 Stores Open Los Cabos Terminal 2 Puerto Vallarta Aguascalientes Los Cabos T2 Gates 1-4 Page 24
Slide 25: Looking Ahead
Looking Ahead Expansion of direct commercial We’ll focus our real estate efforts with operations by adding to our current third parties in royalty based contracts portfolio: to: - Hotels in Guadalajara and Tijuana - Attract the best retail brands for our - Cargo facilities customers - Private Aviati
Slide 26: Airport Infrastructure
Nig eye) at Infraestructure Grupo sa2014 AR Seas
Slide 27: Current Projects - Guadalajara
Current Projects - Guadalajara Increase capacity for international operations • Total investment: US$ 20 million • Refurbishing and expansion of 10,000 m2, including international arrivals and departures • Two new gates and jet ways • Two new baggage carrousels • 20 immigration counters and 8 custom
Slide 28: Current Projects - Guadalajara Terminal building expansion
Current Projects - Guadalajara Terminal building expansion Página 28 Page 28
Slide 29: Current Projects - Guadalajara Refurbishing and apron expansion
Current Projects - Guadalajara Refurbishing and apron expansion Increase Apron capacity • Total investment: US$ 20 million • Refurbishing of 75,000m2 and 20 parking positions. • New layout: including 1 position for type E (B747) and the rest for Type C or D planes Page 29
Slide 30: On-Going Projects - Tijuana Cross Border facility
On-Going Projects - Tijuana Cross Border facility Cross border… as scheduled • Civil Aviation has authorized a US$ 14.5 million investment for the airport integration with CBF. It will include the changes and expansion for customs, immigration and international arrivals as well as bridge and buildin
Slide 31: Current Projects - Tijuana Cross Border facility
Current Projects - Tijuana Cross Border facility Page 31
Slide 32: Completed Projects – Los Cabos Terminal 2 expansion
Completed Projects – Los Cabos Terminal T2 expansion Terminal 2 expansion • T2 operational in November 2012, our traffic expectations have been exceeded • 3.500 m2 from the old terminal 3 departure hall has been refurbished and integrated with the new terminal 2 hall. Two new boarding gates were add
Slide 33: Completed Projects – Los Cabos Terminal 2 expansion
Completed Projects – Los Cabos Terminal T2 expansion Level +6.60. Departures AEROPASILLO AEROPASILLO AEROPASILLO AEROPASILLO TERMINAL 3 T3 Departure hall and 2 new gates Page 33
Slide 34: Completed Projects – Los Cabos Terminal 2 expansion
Completed Projects – Los Cabos Terminal T2 expansion Page 34
Slide 35: Updates
Updates Grupo sar2014 AR Seas
Slide 36: Corporate Structure
Corporate Structure Total Shares: 561,000,000 GMexico ADRs Series BB (AMP): 84,150,000 154,316,760 85,994,990 Treasury 27.5% 15.3% Series B (Free Float): 476,850,000 35,424,453 6.3% Series BB BMV 84,150,000 201,113,797 15.0% 35.8% Series BB - AMP CMA AENA 33.3% 33.3% GAP’s BOARD: Independent 6 Indep
Slide 37: Recent Legal Events and Governance
Recent Legal Events and Governance I. GAP’s by-laws provide governance rules to ensure transparency and control by shareholders… o Board of Directors is comprised of 11 members --- 4 appointed by the strategic partner, currently, 1 appointed by GM as tenure of 10% or more shares, and 6 appointed by
Slide 38: Strategic Partner empowerments and responsibility
II. However, the Strategic Partner has special empowerments and responsibility to conduct and lead the company’s strategy and performance, including: 1. Appointment of the first level of management 2. Budget goals 3. CAPEX program 4. growth and development strategies, and 5. distribution and debt po
Slide 39: Legal dispute over GAP's by-laws
III. At the core issue of the legal dispute is the validity of Articles 10 and 12 of GAP’s by-laws, which would erode the strategic partner’s empowerment: o GM disputes 10% limit of shares as per Articles 10 and 12 o The Mexican Supreme Court considers this subject matter a question of national impo
Slide 40: Instrument to Implement Strategic Partner Expertise is CATT
Instrument to Implement Strategic Partner Expertise is CATT IV. GAP´s management committed to provide complete information related to the services and value provided by the Technical Assistance and Transfer of Technology Agreement (CATT) to governance bodies and shareholders prior to the Ordinary Ge
Slide 41: Special Shareholders' Meeting regarding CATT
V. Regarding the Special Shareholders’ Meeting to vote against continuity of Technical Service Agreement (CATT)… o Neither the Board of Directors, Audit Committee or Management was notifies regarding GM’s intention to conduct a Special Shareholders’ Meeting o The meeting was called illegitimately; n
Slide 42: Conclusion - CATT
Conclusion - CATT • The CATT is one of the key pillars of the Mexican airport privatization program and… • … a minor part of total costs. Most of the CATT is passed through as part of the maximum tariff • GAP has significantly increased revenues and EBITDA since privatization – far outpacing GDP gro
Slide 43: Oliver Wyman - CATT Assessment
Oliver Wyman - CATT Assessment
Slide 44: Opportunities for the Future
Opportunities for the Future
Slide 45: Opportunities for the Future
Opportunities for the Future • Obtain additional cost efficiencies in the directly-operated businesses • Build and develop new terminal areas to accommodate brand innovative commercial layout • Seeking new businesses inside and outside GAP’s concessions • Maximum tariff negotiations Page 45
Slide 46: Financial Highlights – Raúl Revuelta, CFO
Financial Highlights Raúl Revuelta Chief Financial Officer
Slide 47: Financial Results: 2013
Financial Results: 2013 • Solid growth on total revenues 12M 12 12M 13 Change impulse by an increase of 8.9 % Revenue Aeronautical serv ices 3,365,982 3,616,616 7.4% on traffic and 16.1% growth of No aeronautical serv ices 1,008,452 1,170,492 16.1% non aeronautical services. Total revenues (without
Slide 48: Maintaining EBITDA Strength
Maintaining EBITDA Strength • Cost-control consciousness and continuous search for operational efficiencies : • GAP will continue to set aggressive targets for efficient energy usage , that will be supported by more efficient cooling and other systems. • All new building designs will take in account
Slide 49: Maintaining EBITDA Strength
Maintaining EBITDA Strength We expect to continue the double-digit growth of EBITDA value for third year in a row… • Important growth of passenger combined with the correct strategies for non aeronautical revenue, and cost control, will allow us to reach double digit EBITDA growth for 2014. Page 49
Slide 50: Maintaining EBITDA Strength
Maintaining EBITDA Strength Page 50
Slide 51: Financial Strategies
Financial Strategies • Since 2007, GAP has been leveraging its balance sheet to fund investments in Guadalajara, Puerto Vallarta, Los Cabos, Hermosillo and Guanajuato airports • Total debt at February 2014 Ps. Tasa1.6 de billion interés promedio $900 $802 $800 $639 $700 $600 $500 TIIE + 165 TIIE + 1
Slide 52: Distribution Policy
Distribution Policy Dividend and Equity Reimbursement Policy: • Pay all the excess cash above a minimum “cash balance” (two months of OPEX) • Dividend payment, or capital reimbursement , should consider the most efficient fiscal practice. • Board of Directors proposed at Shareholders’ Meeting the hi
Slide 53: Master Development Program: Next Negotiation
Master Development Program: Next Negotiation
Slide 54: Master Development Program: Next Negotiation
Master Development Program: Next Negotiation 𝑅.𝑉.−𝑇.𝑉. ∗ 1+𝐷𝑅 +𝐶𝐴𝑃𝐸𝑋 +𝑂𝑃𝐸𝑋 • MT= 𝑊𝐿𝑈´𝑠 – RV: Reference Value – TV: Terminal Value – DR: Discount Rate – WLU: Work Load Units • Discount rate, CAPEX, OPEX have a positive correlation with the maximum tariff. • WLU have a negative…
Slide 55: Master Development Program: Next Negotiation
Master Development Program: Next Negotiation • The last negotiation was conducted during 2009. • Due to the decrease of country risk for Mexico, the UM is lower than during the past negotiation. • WLU forecasting base (year of negotiation) is higher than in the past. 26.6 Page 55
Slide 56: Master Development Program: Next Negotiation
Master Development Program: Next Negotiation • The pressure of higher WLU and a lower discount rate could decrease the maximum tariff for the upcoming master development program. • This decrease could be offset by increases in CAPEX: – Airports such as GDL, TIJ, SJD and HMO need to increase terminal
Slide 57: Question and Answer Session
Question and Answer Session email your questions to: maliaga@aeropuertosgap.com.mx
Grupo Aeroportuario del Pacífico (GAP) — Investor Day (2014) on 6ix