Grupo Aeroportuario Del Centro Norte Sab De Cv Class B · BMV:OMA/B
Grupo Aeroportuario Del Centro Norte Sab De Cv Class B — Q1 2016 Earnings Presentation
34 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, May 2016
Slide 1: First Quarter 2016 Results
a“ o First Quarter OINVIA 2016 Results
Slide 2: Forward-looking statements
This presentation may contain forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current information and expectations and projections about future events. Forward-looking statements m
Slide 3: About the Company
About the Company Our businesses 13 Airports in the central-north region of Mexico, serving 16.9 million passengers in 2015 2 Hotels; NH Collection Hotel in Terminal 2 of the Mexico City Airport, and a Hilton Garden Inn at the Monterrey Airport 1 Industrial Park at the Monterrey Airport Who we are M
Slide 4: First Quarter 2016 Results
First Quarter 2016 Results Company Overview Aeronautical Business Non-Aeronautical Business Historical Performance Synergy with Airlines Commercial Strategy Shareholders Connectivity Diversification Strategy Operations & Sustainability Passenger Traffic Historical NAR Growth Airline Participation NA
Slide 5: Company Overview
Company Overview Historical Performance Shareholders
Slide 6: Historical Performance
Company Overview | Historical Performance Sustained positive trends through economic and business cycles 5,700 Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 17.3 16.9 17.0 14.7 4,700 14.2 4,335 15.0 14.1 4,145 13.3 12.6 27% 3,422 3,700 13.0 27% 11.8 11.5 11.6 11.8 3,065
Slide 7: Shareholders
Company Overview | Shareholders ICA 1.9% BB Shares Float 12.4% SETA 16.7% 81.4% Includes 7.8mm repurchased shares (2.0% of total shares) B Shares 4.3% SETA Integrated by: Empresas ICA Mexico´s largest engineering, procurement, and construction company. Also has operations in Latin America and Europe
Slide 8: Operation & Sustainability Leadership
Company Overview | Operations & Sustainability Operation & Sustainability Leadership 2014 Culiacán Airport Mazatlán Airport
Slide 9: Aeronautical Business
Aeronautical Business Synergy with Airlines Connectivity Passenger Traffic Airline Participation Aeronautical Revenues 1Q16
Slide 10: Opened Routes
Aeronautical Business | Airline Synergy Opened Routes Airline Project 2014 2015 Total Regional HUB in MTY 11 3 14 Secondary Base in MTY 9 1 10 Secondary Base in MTY 21 7 28 New Airline operating in 9 of 12 15 27 our 13 Airports Total 53 26 79 Net Routes per year(1) 46 14 60 (1)Opened routes – closed
Slide 11: 10 new direct routes January-May 2016
Aeronautical Business | Connectivity 10 new direct routes January-May 2016 Domestic Routes Airline Chihuahua – Tijuana Aeromexico Connect Monterrey – Cuernavaca TAR Monterrey – Bajío Volaris Monterrey – Toluca Volaris Reynosa – Mexico City Volaris Reynosa – Cancun Volaris Reynosa – Guadalajara Volar
Slide 12: Passenger Traffic
Aeronautical Business | Passenger Traffic Passenger Traffic 1Q16 Jan - May 2016 Total Pax: 4.2 million (+9.7%) Total Pax: 7.2 million (+8.5%) 84% Domestic: 3.5 million (+11.6%) 86% Domestic: 6.2 million (+10.6%) 16% International: 0.7 million (+1.0%) 14% International: 1.0 million (-2.5%) CJS (%Part
Slide 13: Airline Participation
Aeronautical Business | Airline Participation 86% Domestic 14% International Passengers Passengers Other TAR 6% Other United 2% 17% 18% Aeroméxico VivaAerobus Interjet 30% 1% 19% WestJet 4% Volaris 5% American Interjet 18% 5% Alaska VivaAerobus 6% 21% Volaris 22% Aeroméxico Delta 13% 12% Note: Infor
Slide 14: Aeronautical Revenues 1Q16
Aeronautical Business | Aeronautical Revenues 1Q16 Domestic International Airport Aeronautical Passenger Charges Passenger Charges Services Revenues Ps. 474mm Ps. 207mm Ps. 128mm Ps. 809mm +25.5% +20.7% +1.4% +19.8% 59% of 26% of 16% of 72% of Total Rev.* Aeronautical Rev. Aeronautical Rev. Aeronaut
Slide 15: Non-Aeronautical Business
Non-Aeronautical Business Commercial Strategy Diversification Strategy Historical NAR Growth NAR 1Q16
Slide 16: Commercial Strategy
Non-Aeronautical Business | Commercial Strategy International Franchises Premium Strategy Maximize Innovative & & Commercial Areas Advertising Renowned Local Loyalty Programs Brands Detail of Commercial Initiatives Implemented in 1Q16 Airport Type Quantity Culiacan VIP Lounge 1 Monterrey Advertising
Slide 17: Diversification Strategy
Non-Aeronautical Business | Diversification Strategy OMA Carga 9.3% of NAR Hotel NHT2 19.4% of NAR Real Estate 1.3% of NAR Av. Rate: Ps.2,157 (+15%yoy) +27.1% +58.1% Occ. Rate: 81% (+250bp) revenues in 1Q16 %EBITDA: 37.9% revenues in 1Q16 Hotel Hilton Garden Inn 6.6% of NAR Industrial Park – Revenue
Slide 18: Historical NAR Growth
Non-Aeronautical Business | Historical NAR Growth Non-Aeronautical Revenues (NAR) have increased faster than passenger traffic as a result of commercial initiatives and diversification projects Base = 2005 NAR Total Passengers 350 300 +286% 250 200 150 100 +59% 50 0 2005 2006 2007 2008 2009 2010 201
Slide 19: Non-Aeronautical Revenues 1Q16
Non-Aeronautical Business | Non-Aeronautical Revenues 1Q16 Commercial Diversification Complementary Non-Aeronautical Activities Activities Activities Revenues Ps. 135mm Ps. 108mm Ps. 45mm Ps. 296mm (+20%) +7.8% +47.4% +15.6% 27% of Total Rev * Ps. 70.9 / PAX 46% of 37% of 15% of Other revenues** wer
Slide 20: Financial Results
Financial Results 1Q16 Highlights Profitability Indicators Value Distribution Balance Sheet
Slide 21: 1Q16 Highlights
Financial Results | 1Q16 Highlights Adjusted Consolidated Passengers Revenues* EBITDA** Net Income 4.2mm Ps. 1,104mm Ps. 705mm +9.7% +19.8% +31.6% Ps. 374mm Domestic +9.7% Aeronautical +19.8% 1Q16 Margin 63.8% +44.8% International +1.0% Non-Aero +19.8% 1Q15 Margin 58.1% *Total Revenues not consideri
Slide 22: Profitability: ROA / ROE and Earnings per Share
Financial Results | Profitability ROA / ROE 25.0 20.8 21.4 Percentage 20.0 18.8 16.8 15.0 12.8 10.9 10.3 10.1 9.9 10.0 8.2 8.3 6.6 5.0 - 2011 2012 2013 2014 2015 LTM (1Q16) Earnings per Share 3.01 3.15 3.45 Ps. 2.58 2.05 1.54 2011 2012 2013 2014 2015 LTM (1Q16)
Slide 23: Focus on Generating Value
Financial Results | Focus on Generating Value Historical Dividend or Dividend Yield and Payout Capital Reimbursement Ratio Ps. Million Percentage 1,600 Payout Ratio Dividend Yield 1,400 1,400 250 8.6 9.0 1,200 1,200 1,200 8.0 1,200 200 6.9 7.0 1,000 5.7 6.0 150 800 147 4.4 5.0 4.2 4.2 4.0 600 117 11
Slide 24: Healthy Balance Sheet
Financial Results as of March 2016| Healthy Balance Sheet Strong Financial Position* Low Leverage vs Industry* Ps. Million Net Debt / Adjusted EBITDA 1.0 4,701 2,885 0.9 0.8 0.7 0.6 1,816 Total Debt Cash Net Debt 2012 2013 2014 2015 LTM (1Q16) Debt Profile* Capital Structure Improvement* Total Debt
Slide 25: Master Development Plan
Master Development Plan Investments 2011-2015 Investments 2016-2020 Maximum Tariffs
Slide 26: Investments 2011-2015
Master Development Plan | 2011-2015 Total Investment Ps. $3,418mm pesos of Dec. 31st, 2015 $1,0 00 100 % $904 $90 0 $851 90% Most Important Projects $80 0 80% $70 0 $668 70% • MTY Terminal A rehabilitation $60 0 $590 60% • MTY Terminal C expansion $50 0 50% • MTY Platform expansion $406 $40 0 40% •
Slide 27: Investments 2016-2020
Master Development Plan | 2016-2020 Total Investment Ps. $4,640mm pesos of Dec. 31st, 2015 ZIH, 7% ZCL, 2% $1,6 00 100 % ACA, 13% $1,4 00 $1,352 $1,297 90% TRC, 3% CJS, 4% 80% TAM, 7% $1,2 00 CUL, 4% $987 70% $1,0 00 60% SLP, 9% $80 0 50% CUU, 10% $606 40% REX, 8% 29% $60 0 28% DGO, 3% $40 0 21% $39
Slide 28: Investment Distribution 2016-2020
Master Development Plan | 2016-2020 Total Investment Ps. $4,640mm pesos of Dec. 31st, 2015 Investment Distribution Terminal Other Expansion & Most Important Projects Remodeling ICAO Certification 6% • Terminal Expansion 7% • Monterrey Operational • Ciudad Juárez Infrastructure • Chihuahua 11% Expans
Slide 29: Visibility on Aeronautical Revenues Through 2020
Master Development Plan | 2016-2020 Visibility on Aeronautical Revenues Through 2020 • Maximum tariffs increased in each airport • The maximum rate for each succeeding year through 2020 will be adjusted by inflation and an efficiency factor of 0.70% Airport 2015(1) (2) 2016(1) Acapulco 210.95 242.73
Slide 30: Outlook
Outlook Company Outlook Industry Trends
Slide 31: Outlook 2016
Outlook | 2016 Passenger Traffic Growth 6%-8% Aeronautical Revenue Growth 22%-24% Non-Aeronautical Revenue Growth 13%-15% Adjusted EBITDA Margin 60%-62% MDP Investments (Ps. Million) 1,500-1,700 Strategic Investments (Ps. Million) 150-250
Slide 32: Positive Trends in the Aeronautical Industry
Outlook | Positive Trends in the Aeronautical Industry Air Industry Low Projected Domestic Penetration in Mexico Passenger Traffic CAGR 2015-2034 2.4 5.6% 5.4% 2.0 4.8% 4.2% 2.4% 0.8 1.7% 0.5 0.3 0.9% 0.2 Mexico Argentina Brazil Canada Chile United Mexico Brazil United Canada Russia Central South St
Slide 33: Positive Outlook in Mexico
Outlook | Positive Outlook in Mexico Current Airlines’ Fleet Airlines’ Expansion Orders Airplanes Airplane orders (2013 – 2022) 126 100 70 59 60 52 44 20 9 8 TAR Vivaaerobus Volaris Interjet Aeromexico Aeromexico Interjet Vivaaerobus Volaris TAR Source: DGAC, Airlines. Last information available. So
Slide 34: Investor Relations Contacts
Grupo Aeroportuario del Centro Norte Chief Financial Officer Vicsaly Torres | vtorres@oma.aero | +52.81.8625.4300 Investor Relations Team Emmanuel Camacho | ecamacho@oma.aero | +52.81.8625.4308 Manuel Higinio de León | mdeleon@oma.aero | +52.81.8625.4334 Laury Franco Castillo | lfranco@oma.aero | +5
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