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 2017 Earnings Presentation
48 slides from Grupo Aeroportuario Del Centro Norte Sab De Cv Class B's earnings presentation, Feb 23, 2018
Slide 1: OMA announces Fourth Quarter and Full Year 2017 Operational and Financial Results
OMA announces Fourth Quarter and Full Year 2017 Operational and Financial Results Monterrey, Mexico, February 22, 2018 — Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated results for the fo
Slide 2: Notes on references and exchange rates
1 Unless otherwise stated, all references are to the fourth quarter of 2017 (4Q17) or full year 2017, and all percentage changes are with respect to the same period of the prior year. The exchange rates used to convert foreign currency amounts were Ps. 19.7354 as of December 31, 2017 and Ps. 20.6640
Slide 3: Investor Relations
Investor Relations: ‘Emmanuel Camacho +452 (Ba) 8625 4308 lecamacho(@oma aero In the US: Daniel Wilson Zemi Communications 42222) 689 9560 ddbmuntzon@zemi.com Media Relations: Paola Femandez “+52 (82) 8625 4300, pfemandex@oma.sero @ OOO /OMAeropuertos
Slide 4: The principal results of the fourth quarter include
The principal results of the fourth quarter include: § Total terminal passenger traffic increased 1.8% to 5.0 million. Domestic traffic increased 2.0% and international traffic increased 0.6%. The Monterrey and Culiacán airports contributed the most to passenger growth. § Aeronautical revenues incre
Slide 5: Consolidated net income increased 13.9%
§ Consolidated net income increased 13.9% to Ps. 2,137 million. Earnings per share were Ps. 5.40 and earnings per ADS were US$2.19. In order to develop passenger terminal and operating infrastructure and to improve service quality in OMA’s 13 airports, total investments in accordance with the Master
Slide 6: 4Q17 Operating Results
4Q17 Operating Results Operations, Passengers, and Cargo The total supply of seats decreased 2.1% in 4Q17, as a result of the closing of routes and reductions in frequencies during the full year 2017. Notwithstanding this, airlines opened a total of 19 routes in the fourth quarter, including 11 dome
Slide 7: Domestic and International Routes
Domestic Routes ViveAerobus 5 CUL ‘Tijuana CUL Chihuahua CUU Culiacén MTY — Huatulco MTY._ Querétaro Veiaris 3. MTY Cozumel 6 MTV Acapuico MTY — Huatulco ACA Monterrey MTY — Mexicali MTY — Tuxtla Gutiérrez MTY — Veracruz MTY — Bajio* TRC Mexico City* interjet POS MTV Aguascalientes POU REX Mexico Ci
Slide 8: Total passenger traffic increased 1.8%
Total passenger traffic increased 1.8% (+89,262 passengers). Of total passenger traffic, 87.9% was domestic and 12.1% was international. Commercial aviation accounted for 99.0% of passenger traffic. Monterrey generated 50.2% of passenger traffic, Culiacán 10.6%, and Chihuahua 7.1%. Domestic passenge
Slide 9: Available Seats and Passenger Traffic
Available Seats 6,943,432 6,800,526 (2.4) 26,003,068 26,515,842, 20 Passenger Traffic Domestic 4319377 4,404,855 20 26,387,946 17,219,950 5a Intemational 600,858 604,682 0.6 2.375692 2.442,064 28 Total Passenger Trafic 41920275 5,009,537 1.8 18,763,638 19,662,014 48 Commercial Aviation (Regular and
Slide 10: Commercial Operations
Commercial Operations OMA implements its commercial strategy through continuous improvement in the services offerings in its airports. This strategy resulted in the opening of 29 commercial initiatives in 4Q17, including car rental, restaurants, retail stores, a VIP lounge, banking services, and hot
Slide 11: Hotel Services
Hotel Services § The NH Collection Terminal 2 Hotel had an 89.2% occupancy rate compared to 79.1% in 4Q16; this was the highest occupancy rate in its history. The average room rate was Ps. 2,324 per night. Revenues increased 11.4% to Ps. 66 million. § The Hilton Garden Inn had a 76.8% occupancy rate
Slide 12: Consolidated Financial Results
Consolidated Financial Results Revenues Aeronautical revenues increased 3.4% to Ps. 1,090 million, principally as a result of higher traffic volumes and increases in specific tariffs in 2Q17. Revenue from domestic passenger charges increased 4.6%, revenue from international passenger charges decreas
Slide 13: Non-aeronautical revenues increased 8.0%
Non-aeronautical revenues increased 8.0% to Ps. 390 million, and represented 26.4% of the sum of aeronautical and non-aeronautical revenues. The increase reflected principally the expansion of commercial activities. Non-aeronautical revenues per passenger increased 6.1% to Ps. 77.9. Non-aeronautical
Slide 14: OMA
OMA
Slide 15: Commercial Activities
Commercial Activities: Parking 495523 728 65 192,083 200.968 46 Advertising 27.384 23068 (58) 220.592, 106,045 (42.2) Retail 30,966 29951 (33) 97.630 106,908 95 Restaurants 2557 34336287 85,995 103577 3B CorRentals 22,627 29078 8s 75,985 e270 aaa Passenger Services 745 68 (6.4) 2,803 2662 (50) Time
Slide 16: Commercial activities contributed an incremental increase
Commercial activities contributed an incremental Ps. 15 million (+8.6%). The line items that had the largest variations were: § Car rental (+28.5%; +Ps. 6 million), as a result of better contractual terms and the leasing of sixteen new locales in 4Q17. § Restaurants (+21.7%; Ps. +6 million), as a re
Slide 17: Construction revenues and costs and operating expenses
Construction revenues , which represent the value of improvements to concessioned assets, were Ps. 408 million (+136.7%) during the quarter. They are equal to construction costs recognized, and generate neither a gain nor a loss. Construction revenues and costs are a function of the advance in execu
Slide 18: OMA
OMA
Slide 19: Major maintenance provision and operating costs
The major maintenance provision increased 11.0% to Ps. 91 million. The balance of the maintenance provision as of December 31, 2017 was Ps. 858 million, compared to Ps. 670 million at the end of 2016. The airport concession tax increased 1.2% as a result of the growth in revenues. The technical assi
Slide 20: Cost of Services and Operating Expenses table
Cost of Services 233.456 239,035, 24 — gootgr 982,065 90 Administrative Expenses (GBA) 199,284 146,277 (266) 642345 587,917 G5) Subtotal (Cost of Services + G&A) 1328 385312 G20) 2,542,486 2,568,982 17 Major Maintenance Provision 81,808 90,833 a0 262,871 29,038 107 Construction Cost 172.54 407.553 1
Slide 21: Adjusted EBITDA and Operating Income
Adjusted EBITDA and Operating Income As a result of the Company’s continuing initiatives to increase revenues and control costs and expenses, Adjusted EBITDA increased 13.6% to Ps. 999 million. The Adjusted EBITDA margin was 67.5%, the highest quarterly margin in OMA’s history. (See Notes to the Fin
Slide 22: Financing (Expense) Income
Financing (Expense) Income Financing (Expense) Income decreased by Ps. 25 million to Ps. 19 million in 4Q17. The reduction was principally because of a decrease in interest income.
Slide 23: Net Income
Net Income Consolidated net income increased 9.5% to Ps. 625 million. Earnings per share , based on net income of the controlling interest, increased 9.5% to Ps. 1.58; earnings per ADS increased 14.7% to US$0.64. Each ADS represents eight Series B shares.
Slide 24: MDP, Strategic Investment, and Quality Improvement Expenditures
MDP, Strategic Investment, and Quality Improvement Expenditures OMA maintains its firm commitment to provide services of the highest quality for its passengers and airline clients in all thirteen airports. As a result, we are constantly undertaking maintenance projects, developing and optimizing inf
Slide 25: OMA
OMA
Slide 26: Debt
Debt As of December 31, 2017, total debt was Ps. 4,633 million and net debt was Ps. 2,300 million. The ratio of net debt to Adjusted EBITDA was 0.60 times. Of total debt, 97% was denominated in Mexican pesos, and 3% in U.S. dollars.
Slide 27: Derivative Financial Instruments
Derivative Financial Instruments As of the date of this report, OMA has no derivatives exposure.
Slide 28: Cash Flow Statement
Cash Flow Statement For the full year 2017, operating activities generated cash of Ps. 2,925 million, a 22.8% increase compared to 2016. The increase resulted principally from higher operating income and a reduction in client accounts receivable, which were partially offset by higher tax payments. I
Slide 29: Material and Subsequent Events
Material and Subsequent Events OMA included in the Dow Jones Sustainability MILA Pacific Alliance Index. In October 2017, OMA was selected for inclusion in this index that includes companies with the best sustainability practices in the four countries of the Pacific Alliance: Mexico, Colombia, Peru,
Slide 30: Earnings conference call and sustainability recognition
OMA (NASDAQ: OMAB; BMV: OMA) will hold its 4Q17 earnings conference call on February 26, 2018 at 12 pm Eastern time, 11 am Mexico City time. The conference call is accessible by calling 1-888-394-8218 toll-free from the U.S. or 1-323-701-0225 from outside the U.S. The conference ID is 8312253 . The
Slide 31: Annex Table
Annex Table 1
Slide 32: Passenger traffic by airport
(Terminal Passengers- Excludes Tanst Passengers) Total Passengers 4036 4Oay_S6Var 206 yy %Var Acapulco wea 363.3 as) 738493 685224) Ciudad Jutrez 27am 253.004 26 © azenfes 4.72025 64 culacén 486g saps B38 17286, 936 306 Chinvahus x6s52 ag (os) 4305962 a405.579 79 Durango wo6 30 675 (88) gagaas ws905
Slide 33: Annex Table
Annex Table 2
Slide 34: Statement of Financial Position
(Thousands of Pesos) December, December 3, over ons ae Deca7iDecss Assets Curent Assets Cash and Cath Equivalents 3005792 2.283.007 24) Other investments Held te Maturtty 49.239 ‘Trade Accounts Receivable. Net 7430 0757 (a7) ‘Trade Accounts Receivable rom Related Parties 48o22 36405 2052 Recoverable
Slide 35: Annex Table
Annex Table 3
Slide 36: Consolidated Comprehensive Income Statement
Grupo Aeroportuario del nauditad Consol hensive In (Thousands of Pesos) 4036 40:7 svar 206 207 %6Var Revenues Awonautical Revenues 055859 sog0ara 34 BBs agar Non-Aerorautical Revenues a Ben BARRIER an BASE. {Aeronautical Revenues + Non-AeronauticalRevenves 4424966 440,208 46 5205497 5.803369 0 aS Go
Slide 37: Annex Table
Annex Table 4
Slide 38: Statement of Cash Flows
SAB. de (Thousands of Pesos) ‘Asof December, os 2017 6Var. Operating Activities Income Before Taxes 263283 2950595 235 CChangein thevalueofeath and can eguivalenteforfairvalve kasi - ne Depreciation and Amonization 255% 299352 22 Major Minterance Prouiion 252571 asie38 107 Doubtful Accounts Provisio
Slide 39: Annex Table
Annex Table 5
Slide 40: Statement of Changes in Stockholders' Equity
Grupo Aeroportuario del Centro Norte, 5.A.B. de C.V. Unaucited Statement of Changes in Stockholders’ Equity AAs of December 31, 2026 (Thousand Pesos) Additional Share Non- Total Number of Capital stock Paid-In Retained Repurchase Labor Controlling Stockholder's Shares ___Nominal___Capital__Earnings
Slide 41: Annex Table
Annex Table 6
Slide 42: Results by airport
Thousand Pasengersand Thovsnd Pesos Montes as 404 aos 200) cua es ams 20 Teal sens 2allaagn8 gars gra ‘TotalPunengers wg smarty 49007 ronal sevens sesa7e 7086823457470 saftey Totalmerenues mbes ata seheey sob seronavicalmeverues gga supsns areata aesGomr —sernautialmennues——sgas5 sont? ana 40009 Non
Slide 43: Analysts covering OMA
Annex Table 7 In accordance with the requirements of the Mexican Stock Exchange, the analysts covering OMA are:
Slide 44: Analyst coverage list
Actinver Casa de Bolsa Bank of America Merrill Lynch Banorte-IKE Barclays Bank PLC BBVA Bancomer Bradesco BB! Citigroup Credit Suisse Goldman Sachs Grupo Bursétil Mexicano (GBM) Grupo Financiere Interacciones HSBC Intercam Casa de Bolsa Insight Investment Research trad BBA LP. Morgan Morgan Stanley
Slide 45: Notes to the Financial Information
Notes to the Financial Information Financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), and presented in accordance with IAS 34 “Interim Financial Reporting.” In December 2015, OMA elected early adoption of the amendments established by Internati
Slide 46: Notes: baggage liability and construction revenue
maximum rates, while the operational aspects are assessed as a non-regulated service charge. In accordance with the Civil Aviation Law and the regulations issued by the DGAC, the primary responsibility for damages and losses resulting from checked baggage lies with the airline. Notwithstanding the f
Slide 47: Notes: major maintenance, MDP, maximum rate system
estimates of the disbursements it needs to make. The use of the provision corresponds to the outflows made for the conservation of these operational assets. Master Development Plan (MDP): The investment plan agreed to with the government every five years, under the terms of the concession agreement.
Slide 48: Forward-looking statements
This report 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 may be
Central North Airport Group — Q4 2017 Earnings Presentation on 6ix