Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q4 2014 Earnings Presentation
51 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, 2015
Slide 1: Fourth Quarter 2014
Fourth Quarter 2014
Slide 2: Investment Highlights
Investment Highlights 1 Mexican airport portfolio positioned to take full advantage of global growth. 2 Diversified business model contributing to earnings resilience. 3 Well-defined strategy to capitalize favorable industry dynamic in traffic increases and profitability. 4 Successful implementation
Slide 3: Company Overview
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Slide 4: Passenger Traffic
Passenger Traffic 10.6% • 2014: 14.7 MPAX Metropolitan Regional Tourist Border Cities NH Hotel 4
Slide 5: Historical Performance
A History of Successful Milestones Historical Performance Revenue figures in Ps. Million 14.7 4,000 14.2 14.1 15.0 13.3 12.6 3,422 1 3,500 11.8 11.5 11.6 11.8 13.0 3,065 10.6 3,000 9.7 2,820 26% 11.0 8.6 8.9 2,459 26% 2,500 24% 9.0 2,144 1,897 1,988 1,896 24% 2,000 7.0 1,687 23% 1,480 18% 19% 19% 1,
Slide 6: Shareholders
Shareholders Mexico’s leading construction and infrastructure operations company, with important operations in AEROINVEST, Latin America and Europe. 23.80% SETA- AEROINVEST, 1 12.40% SETA, 16.70% PUBLIC FLOAT, Company that specializes in airport management 2 59.50% around the world, as well as parti
Slide 7: Industry Outlook
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Slide 8: Positive Trends in Aeronautical Industry
Projected GDP GAGR1 2012-2030 Projected Domestic Passenger Traffic CAGR1 2013-2032 Positive Trends in Aeronautical Industry 1 Air Passenger Transport per Capita Projected Domestic Passenger Traffic CAGR 2014-2033 6.0% 2.4 5.6% 2.0 4.7% 4.7% 2.5% 0.8 1.9% 2.0% 0.3 0.5 0.2 Mexico Argentina Brazil Cana
Slide 9: Positive Outlook in Mexico
Positive Outlook in Mexico Travelers in Mexico by Type of Transportation Airlines’ Fleet and Expansion Plans Economy bus Airplane 23.9% 0.4% Executive bus Airplanes 124 22 52 50 3 19 1.5% Train 1.6% Orders/ 1.9% 70.7% 97 51 58 42 3 9 additional Sea Transportation Average 8.5 20.6 6.0 4.3 12.3 16.0 L
Slide 10: OMA Strategy
Increase Aeronautical Revenues Operational, Security, and Efficiency Leadership Develop Air Traffic and Sustainable Company Connectivity OMA Strategy Diversification Increase Non- Aeronautical Revenues Improve Passenger Experience
Slide 11: Air Traffic Development Strategy
Air Traffic Development Strategy
Slide 12: Develop Air Traffic and Connectivity 2014
Develop Air Traffic and Connectivity 2014 Air national +46 net new routes connectivity 14.7 million passengers Air international connectivity Air regional connectivity 12
Slide 13: Aeromexico's HUB in Monterrey
Aeromexico’s HUB in Monterrey +11 new direct routes 13
Slide 14: Volaris' Regional HUB in Monterrey
Volaris’ Regional HUB in Monterrey +20 new routes 14
Slide 15: Interjet's Regional HUB in Monterrey
Interjet’s Regional HUB in Monterrey +8 new direct routes 15
Slide 16: New Airline: TAR
New Airline: TAR +14 new routes 16
Slide 17: Traffic Growth
Traffic Growth 2,000 2.9% 9.0% 6.9% 11.1% 13.8% 14.1% 10.0% 15.1% 16.0% 10.3% 7.9% 12.5% 13.3% 14.0% 1,500 12.0% 10.0% 1,000 8.0% 500 6.0% 4.0% 2.0% 14.3% in 4Q14 0 0.0% March October June August February April September July May January November December 2013 2014 % Growth 10.6% in 2014 17
Slide 18: Commercial Strategy
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Slide 19: Commercial key points
Commercial key points • Maximize commercial areas. • Increase presence of international franchises and renowned local brands. • Introduce “Premium” strategy focus and loyalty programs. • Innovative and alternative advertising. 19
Slide 20: Parking lots improvements
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Slide 21: Magnopantallas
Innovative and alternative advertising Magnopantallas
Slide 22: OMA Premium
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Slide 23: Diversification Strategy
Cargo Service Stations Intermodal Centers Hotels and Offices Industrial Parks Diversification Sports Centers Strategy
Slide 24: Monterrey Airport Hotel
Monterrey Airport Hotel Monterrey Airport Hotel TERMINAL A • Partnership: Grupo Hotelero Santa Fe with15% stake and OMA 85%. ESTACIONAMIENTO • Completition and opening 1H15. GLORIETA ACCESO/SALIDA • 134 rooms. PUENTE CONEXION MOTOR LOBBY • Expected investment 2014 from TERMINAL B ESTACIONAMIENTO OMA
Slide 25: Industrial Park at Monterrey Airport
Industrial Park at Monterrey Airport Industrial Park at Monterrey Airport • Joint venture: OMA 51%- VYNMSA 49%. • 32 hectares. • Urbanization works and first warehouse (5,000 m2) . • Expected investment 2014 from OMA: Ps. 24 million. 25
Slide 26: Operational and Sustainability Leadership
Operational and Sustainability Leadership
Slide 27: Sustainable Management Model
Sustainable Management Model 2014 Culiacan Airport Mazatlan Airport 27 Source: Company filings, GRI Report.
Slide 28: Results & Track Record
Results & Track Record & Track Record Results
Slide 29: Aeronautical Revenues 4Q14
Aeronautical Revenues 4Q14 72% of total revenues excluding construction Aeronautical revenue per passenger Ps. 165.0 (Ps. Million) 4Q13 4Q14 % Var Domestic Passenger Charges 353 418 18.4 International Passenger Charges 106 105 (0.8) Aeronautical Services, Regulated Leases and Access Rights Aeronauti
Slide 30: Non Aeronautical Revenues 4Q14
Non Aeronautical Revenues 4Q14 28% of total revenues excluding construction Non Aeronautical revenue per passenger Ps. 63.5 (Ps. Million) 4Q13 4Q14 % Var Commercial Activities 109 133 22.1 Diversification Activities 64 67 5.2 Complementary Activities 35 41 14.2 Cost Recovery 10 9 (5.8) 14.7% Non Aer
Slide 31: NH Hotel Results 4Q14
NH Hotel Strong Results NH Hotel Results 4Q14 (Ps. Million) 4Q13 4Q14 % Var Mexico City Airport Hotel Market +4.9% Total Revenues 47 50 5.8 vs 4Q13 Operating Results 15 8 (47.1) EBITDA 20 13 (34.9) RevPAR2: 1,497 EBITDA Margin1 42.2% 26.0% Occupancy Rate 79.1% 81.4% 230 bp Occupancy Rate Average Dai
Slide 32: Operating Cost and Expenses 4Q14
Operating Cost and Expenses Operating Cost and Expenses 4Q14 10.5% (Ps. Million) Cost of Services General and Administrative 4Q13 192 136 4Q14 207 150 %Var 8.1 10.5 Expenses Cost of Airport Services +GA 327 357 9.1 Major Maintenance Provision 140 54 (61.7) Cost of airport Construction Cost 147 94 (3
Slide 33: 4Q14 Highlights
4Q14 Highlights (Million Passengers and Ps. Million) 4Q13 4Q14 %Var c Passenger Traffic 3.4 3.9 14.3 Aeronautical+Non 787 898 14.1 Aeronautical Revenues Construction Revenues 147 94 (35.7) Total Revenues 993 992 6.3 Income from Operations 234 365 56.3 1 Adjusted EBITDA 424 483 13.9 Adjusted EBITDA M
Slide 34: Aeronautical Revenues 2014
Aeronautical Revenues 2014 74% of total revenues excluding construction Aeronautical revenue per passenger Ps. 172.3 (Ps. Million) 2013 2014 % Var Domestic Passenger Charges 1,441 1,613 12.0 International Passenger Charges 413 455 10.2 Aeronautical Services, Regulated Leases and Access Rights Aerona
Slide 35: Non Aeronautical Revenues 2014
Non Aeronautical Revenues 2014 26% of total revenues excluding construction Non Aeronautical revenue per passenger Ps. 60.5 (Ps. Million) 2013 2014 % Var Commercial Activities 407 453 11.1 Diversification Activities 228 251 10.1 Complementary Activities 129 150 16.3 Cost Recovery 32 36 12.1 11.7% No
Slide 36: NH Hotel Results 2014
NH Hotel Strong Results NH Hotel Results 2014 (Ps. Million) 2013 2014 % Var Total Revenues 176 196 10.9 Mexico City Airport Hotel Market +8.0% vs 4Q13 Operating Results 52 52 (0.1) 1 EBITDA 73 72 (1.0) RevPAR2: 1,441 EBITDA Margin 41.2% 36.9% Occupancy Rate 82.5% 79.6% (290)bp Occupancy Rate Average
Slide 37: Operating Cost and Expenses 2014
Operating Cost and Expenses Operating Cost and Expenses 2014 1.6% (Ps. Million) Cost of Services General and Administrative 2013 725 501 2014 773 536 %Var 6.6 6.9 Expenses Cost of Airport Services +GA 1,227 1,309 6.7 Major Maintenance Provision 263 180 (31.6) Cost of airport Construction Cost 353 30
Slide 38: 2014 Highlights
2014 Highlights (Million Passengers and Ps. Million) 2013 2014 %Var c Passenger Traffic 13.3 14.7 10.6 Aeronautical+Non 3,065 3,422 11.6 Aeronautical Revenues Construction Revenues 353 307 (12.9) Total Revenues 3,418 3,730 9.1 Income from Operations 1,209 1,486 22.9 1 Adjusted EBITDA 1,674 1,890 12.
Slide 39: Diversification and Cost Control
OMA’s Strategy has resulted in Strong Traffic, Revenues and Adjusted EBITDA Growth Diversification and Cost Control Million of terminal passengers and Ps. Million Y-o-Y growth CAGR 12% 3,500 Financial Downturn 9% 2,900 1200 14 14 15 16 09-14 15% 13 3,000 5.0% 15% 1000 12 12 12 12 13 890 14 2,500 13%
Slide 40: Focus on Generating Value
Focus on Generating Value Historical Dividend / Capital Reimbursement Dividend Yield and Payout Ratio 1,400 Ps. Million Percentage 1,200 1,600 8.6 9.0 6.9 1,000 1,200 1,200 1,400 8.0 1,200 5.7 7.0 800 1,000 4.5 4.2 81 147 6.0 5.0 600 800 4.0 600 400 500 3.0 200 400 400 400 61 2.0 200 74 85 1.0 0 0 0
Slide 41: Focus on Generating Value
Focus on Generating Value ROA/ROE EPS Percentage Pesos ROA ROE 3.01 20.0 18.0 16.0 18.8 2.58 14.0 16.8 12.0 2.05 10.0 12.8 1.65 11.2 10.9 1.54 8.0 10.1 6.0 7.6 8.2 8.2 1.19 4.0 6.1 6.6 2.0 4.6 - 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 41
Slide 42: Balance Sheet
Balance Sheet Current Portion of Long 0.4% Term Debt Debt Maturity Profile Cash and Equivalents 22.5% Long Term Debt 37.5% Other Current Assets Ps. Million 5.3% Land, Buildings, Machinery and 18.3% Major Maintenance Provision 1.5% Equipment Other Liabilities 11.7% 3,000 Investment in Airport Concess
Slide 43: MDP
1,2 MDP Ps. Million 147 146 326 5 579 82 537 Additional Recognition of Land Acquired 454 469 Federal Government agreed to recognize land reserve for Ps. 487 million acquired for Culiacan and Monterrey 107 airports as improvement in concession assets. 218 2011 2012 2013 2014 2015 MDP Investment in La
Slide 44: Subsequent Events
Subsequent Events OMA is a component of the Bolsa’s Sustainability Index. On January 20, 2015, the Mexican Stock Exchange [again] included OMA as a component of the IPC Sustainability Index for the period February 3, 2015 to January 29, 2016. This reflects the efforts of the Company to adopt best pr
Slide 45: Outlook
Outlook Passenger Traffic Growth 6%-8% Aeronautical Revenue Growth 7%-9% 2015 Non Aeronautical Revenue Growth 13%-16% Adjusted EBITDA 53%-55% MDP Investments (Ps.Million) 500-700 Strategic Investments (Ps.Million) 100-200 OMA is providing this outlook based on internal estimates. A number of factors
Slide 46: Monterrey
Results & Monterrey Track Record
Slide 47: Culiacán
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Slide 48: Zihuatanejo
Zihuatanejo
Slide 49: San Luis Potosí
San Luis Potosí
Slide 50: Acapulco
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Slide 51: Mazatlán
Mazatlan AEROPUERTO INTERNACIONAL DE MAZATLAN
Grupo Aeroportuario del Centro Norte (OMA) — Q4 2014 Earnings Presentation on 6ix