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 — Q4 2010 Earnings Presentation
35 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Feb 28, 2011
Slide 1: Fourth Quarter and Full Year 2010 Earnings Report
Fourth Quarter and Full Year 2010 Earnings Report February 25, 2011 Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), reported its unaudited, preliminary results for the fourth quarter and full year 2010 today. 1 During 2010, OMA’s
Slide 2: Strong revenue growth for fourth quarter and full year 2010
OMA generated strong revenue growth for both the fourth quarter and full year 2010 results, despite the indefinite suspension of operations of Grupo Mexicana in August 2010, which dampened the recovery of air traffic volumes. Passenger traffic increased 0.6% in both the quarter and full year, while
Slide 3: 4Q10 Highlights
Progress in increasing commercial revenues was significant. NH Terminal 2 Hotel revenues in 4Q10 almost tripled from the prior year period, and increased almost seven times during the full year. The new Monterrey Terminal B, with 2,100m 2 of additional commercial space, started operations in Septemb
Slide 4: Net income, capex and operating results
§ Consolidated net income increased 126.5% to Ps. 368 million. Contributing to the increase was a tax credit of Ps. 298 million largely resulting from a re-estimation of deferred tax liabilities. Earnings per share were Ps. 0.92, or US$0.59 per American Depositary Share (ADS). § Capital expenditures
Slide 5: Passenger traffic by airport
Six of the 13 airports had increases in total traffic (See Annex Table 1, Passenger Traffic ). There were noteworthy increases in the airports of Monterrey, Chihuahua, Ciudad Juárez, and San Luis Potosí. Monterrey (+7.2%) benefited from increased traffic on Grupo Aeroméxico, Interjet, and VivaAerobu
Slide 6: Grupo Mexicana suspension impact on domestic traffic
The suspension of operations of the Grupo Mexicana airlines principally affected domestic traffic in Acapulco (-22.0%), Torreón (-21.2%), Reynosa (-28.6%), and Culiacán (-6.1%). Reductions on the Mexico City routes was the principal factor in the first three airports; Culiacán traffic decreased most
Slide 7: Non-aeronautical and commercial operations
Non-aeronautical and commercial operations During 4Q10, we continued to increase and improve the commercial offering and passenger services available in our airport terminals. Ten new commercial businesses opened, as did a variety of new services, such as ATMs and telephone hotlines to service provi
Slide 8: New commercial spaces by airport
Airport Chinvanua Neoterrey- TA Nenterrey-TB Nenterrey- TC San Luis Potest catiacén Nenterrey-TB AL 13 Airports Derango Nenterey- TB Tacatecas acatecas AL 13 Airports Chinas Type Leasings: Store Leasings: Store Leasings: Store Leasings: Store Leasings: Store Leasings: Store Car rental developers! Fi
Slide 9: Terminal Hotel Operations
Terminal 2 Hotel Operations The occupancy rate of the NH T2 hotel in Mexico City continued to increase as a result of advertising and marketing initiatives. The hotel also benefited from an increase in the number of passengers in Terminal 2, as a result of the suspension of operations of Grupo Mexic
Slide 10: Aeronautical revenues
Aeronautical revenues increased 4.5% to Ps. 397.3 million. Revenues from both domestic and international passenger charges increased, as did revenue from other airport services, as the result of increases in specific tariffs. Aeronautical revenue per passenger increased 3.8% to Ps. 141.3.
Slide 11: Construction revenues under INIF 17
Construction revenues recognized in accordance with INIF 17 were Ps.280.9 million, which is the value of the improvements to concessioned assets made during the quarter, based on percentage of completion accounting.
Slide 12: Costs and operating expenses
Costs and operating expenses Total costs of services and operating expenses were Ps. 721.0 million. Excluding the effect of the adoption of INIF 17, costs and expenses totaled Ps. 440.1 million, an increase of 18.0% as compared to 4Q09. The increase reflects the increase in cost of services, general
Slide 13: Cost of services and general and administrative expenses
Total cost of services and general and administrative expenses were Ps. 272.1 million. This increase was caused by costs and expenses from the operation of Terminal B (which started operations in September 2010) and the Operations Control Center in Monterrey (which started operations at the beginnin
Slide 14: Construction costs and concession tax
Construction costs were Ps. 280.9 million. In accordance with INIF 17, this amount is equal to construction revenue, and is based on the price that the Company would pay in an arm’s length transaction. Airport concession tax increased 8.3%; this tax is equal to 5% of gross revenues, in accordance wi
Slide 15: Operating income and Adjusted EBITDA
The technical assistance fee decreased 7.6%, as the result of the decrease in EBITDA generated by the airports. This fee is charged as the higher of US$3.0 million per year or 5% of Adjusted EBITDA before technical assistance. The operating results of the NH T2 hotel are not included in calculating
Slide 16: Operating results table
4909 4910 % Var 2009 2010 Var 162,640 368,331 126.5 469,525 551,976 17.6 1321 (23,218) a (22,126) (68,338), wa 5507 (4) va 10051 0%) va (298,118) n/a (152,22) Va 19097 17.3 46962 14.0 2684225 40,843 Gat) 5.58 ms 109,664 95,865 (12.6) 559,385. 471,171 (15.8) Operating margin © RT NTE Be 7.8 ‘Operatin
Slide 17: Other income, financing expense, and taxes
Other income (expense), financing expense, and taxes Comprehensive financing expense was Ps. 23.2 million, as compared to financial income of Ps. 1.3 million in 4Q09. The increase in interest expense reflects the 63.6% increase in outstanding debt, and there was an exchange loss.
Slide 18: Net income table
(Ps. thousands) 4009 4010 % Var 2009 20100 %Var Consolidated net income (lass) 462,640 368,231 126.5 469,525 551,976 17.6 Net margin Be Be 4.8% 2.8% Net margin ex INF 17 6) 33786878 24.88 278 Net income (loss) of minority interest (82) 882 va (1,464) (1,370) va Net income (loss) of majority interest
Slide 19: Capital expenditures
Capital expenditures During 4Q10 capital expenditures were Ps. 497.6 million, including both Master Development Plan (MDP) investments and strategic investments. The most important investments during the fourth quarter were: § Installation of equipment for the Baggage Handling System in the airports
Slide 20: Liquidity
Liquidity During the full year 2010, operating activities generated net cash of Ps. 610.7 million, as compared to Ps. 448.8 million during 2009. Investment activities used cash of Ps. 518.6 million; and financing activities were an outflow of Ps. 38.4 million. ( See Annex Table 4. ) In December, OMA
Slide 21: Dividend payment and early adoption of IFRS
Third quarterly payment of 2009 dividend: On January 15, 2011 the third quarterly installment of the dividend declared by the Annual Shareholders’ Meeting on April 16, 2010 was paid. The amount was Ps.0.25 per share. Early adoption of International Financial Reporting Standards: In January 2009, the
Slide 22: IFRS transition effects
§ Income taxes: The Company will recalculate its deferred taxes under IFRS based on adjusted values for assets and liabilities that require modifications based on the adoption of the new standards. The total effect of this change is Ps. 706 million. § Employee benefits: Under IFRS, the provision for
Slide 23: Annex Table
Annex Table 1
Slide 24: Passenger Traffic
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Passenger Traffic (Terminal passengers excludes transt passengers} Total passengers 4909 4Q10 svar 2009 2010 acapdco es.944 west (47.2) 359.088 735,578 cluded mez ey wo sui 233.918 cuiacén 25.87 assert 6.0) 1.082193 1.059.504 Chiao 182.982 want 8
Slide 25: Annex Table
Annex Table 2
Slide 26: Unaudited Consolidated Balance Sheet
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Consolidated Balance Sheet (Thousands of pasos) ‘As of December 21, 2009 2010 svar Tesate Currant assets (Cash and cash equivalents 267734 aie 168.8 ‘Trade Accounts receivable- nat 423.26 past 446) ‘Trade Accounts receivable from related
Slide 27: Annex Table
Annex Table 3
Slide 28: Unaudited Consolidated Statement of Income
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Consolidated Statement of Income (Trousande of pesos) 00 4010 svar 2009 2010 svar Aeronautical services soz 35729545 nT es esas Non-aeronautical services 020518678 DALIT Constiction services - 200,897 na - sors la BLESS 92 —«E DTT EBL sa
Slide 29: Annex Table
Annex Table 4
Slide 30: Unaudited Consolidated Cash Flow Statement
Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. Unaudited Consolidated Cash Flow Statement (Thousands of pesos) ‘Through December 31, 2009 2010 svar Income before taxes 547,309 399,744 _@7.0) Items related to investing activities Depreciation and amortization aig 46362140 Interest income 2205)
Slide 31: Annex Table
Annex Table 5
Slide 32: Results by airport
2 2009 9,002 tia. 195,501 180,259 sigs 5817 5378 a6 72,130 oe.704 - sar Income from operations (20,954). (18,71), rae 4.758 Adjusted EATOS ame 732 ones 548 caliacin azatiin Total passengers DES Ge 1@S 105) Total passers wat ie7 vase Te Total Revenues 4191657015008 205,915 Total Revenues ssoH7 85,338
Slide 33: Notes and disclaimers
Notes and disclaimers Adjusted EBITDA : OMA defines Adjusted EBITDA as net income minus net comprehensive financing income plus taxes and depreciation and amortization, and excludes other income (expense). Adjusted EBITDA is equivalent to the concept UAFIDA in Mexico. Adjusted EBITDA should not be c
Slide 34: Notes and disclaimers (continued)
Mexican Financial Reporting Standards (MFRS) : financial statements and other information are presented in accordance with current MFRS and their Interpretations (INIFs). These standards differ in certain significant respects from U.S. GAAP. Non-aeronautical revenues: are revenues that are not subje
Slide 35: About OMA
About OMA Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA, operates 13 international airports in nine states of central and northern Mexico. OMA’s airports serve Monterrey, Mexico’s third largest metropolitan area, the tourist destinations of Acapulco, Mazatlán, and Zihuatanejo, a
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