INVESTOR PRESENTATION FOURTH QUARTER 2017 RESULTS

Transcription

1 INVESTOR PRESENTATION FOURTH QUARTER 2017 RESULTS

2 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 may be identified by the words believe, expect, anticipate, target, estimate, or similar expressions. While OMA's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and are generally beyond the control of OMA, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to, those discussed in our most recent annual report filed on Form 20-F under the caption Risk Factors. OMA undertakes no obligation to update publicly its forwardlooking statements, whether as a result of new information, future events, or otherwise. 2

3 A b o u t t h e C o m p a n y Our businesses 13 Airports in the central-north region of Mexico, serving 19.7 million passengers in Hotels; NH Collection Hotel in Terminal 2 of the Mexico City Airport, and Hilton Garden Inn at Monterrey Airport 1 Industrial Park at Monterrey Airport Who we are More than 1,000 employees committed to providing aeronautical, commercial and real state services of excellence to our passengers and clients. Listed in BMV and NASDAQ since 2006 Part of Dow Jones Sustainability Index for Emerging Markets and the Sustainability Index of BMV 3

4 Company Overview Aeronautical Business Non- Aeronautical Business Financial Results MDP & Maximum Rates Outlook and Industry Value Proposal Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability Connectivity & New Routes Passenger Traffic Airline Participation AR 4Q17 2Q17 Commercial Strategy Diversification Strategy NAR 2Q17 4Q17 Historical NAR Growth 4Q17 2Q17 Highlights Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution Investments New Terminals Maximum Rates Industry Trends Airline Fleets: Orders and Expected Load Factor

5 C o m p a n y O verview Value Proposal Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability

6 Company Overview Value Proposal High potential portfolio of airports and businesses Sustained passenger growth Visibility in aeronautical tariffs Successful commercial and diversification strategies Commitment to sustainability, safety and security Cost and expenses management efficiency Constant growth in Adjusted EBITDA and margins Balanced capital structure Maximizing value distribution Experienced board of directors and management team 6

7 6,000 4,000 2, Company Overview Historical Performance Sustained positive trends through economic and business cycles CAGR PAX 8.9% Revenues 15.4% Adjusted EBITDA 20.5% Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) ,065 2,820 2,459 23% 2,144 19% 1,897 1,988 1,896 19% 1,687 19% 19% 18% 19% 16% 84% 81% 81% 81% 82% 81% 81% 77% , ,145 26% 3,422 24% 24% 74% 76% 76% ,803 26% 74% % Adj. EBITDA 2 54% 56% 53% 51% 44% 51% 54% 55% 55% 59% 64% 66% Note: From 2010 to 2016 figures expressed under IFRS; figures expressed under MFRS. 1 Represents the sum of aeronautical and non-aeronautical revenues (excludes construction). 2 Adjusted EBITDA Margin = Adjusted EBITDA / (Aeronautical + Non-Aeronautical Revenues). Adjusted EBITDA = Operating income + Depreciation and Amortization + Maintenance Provision. 3 Passenger traffic as of December 31,

8 Company Overview Shareholder Structure 12.6% SETA 1 BB shares 85.5% Public Float 2 - B Shares 1.9% CONOISA 1 B shares Market Cap 3. Ps. Bn. $40 / USD Bn. $2 Note: Share holding information as of December 31, Servicios de Tecnología Aeroportuaria, S.A. de C.V. (SETA) and Controladora de Operaciones de Infraestructura, S.A. de C.V. (CONOISA) are wholly owned subsidiaries of Empresas ICA,S.A.B. de C.V. 2 Float includes repurchased shares ³ BM V Price Ps as of December 31, Exchange rate used:

9 Company Overview Board of Directors & Management Team CORPORATE GOVERNANCE 5 of 11 Directors are independent members Board Audit and Corporate Practices Commitees are 100% independent EXPERIENCED MANAGEMENT TEAM (Average time with OMA: 14 years) Porfirio González Chief Executive Officer With the Company since 1998 Alfredo Domínguez General Counsel With the Company since 2004 Juan Manuel Jauregui Director of Airport Operations With the Company since 1999 Roberto Ontiveros Infraestructure and Maintenance Director With the Company since 2008 Héctor Cortés Chief Commercial Officer With the Company since

10 Company Overview Operations & Sustainability Always striving to meet international standards. Occupational Health and Safety Aerodrome Certification CULIACÁN AIRPORT MAZATLÁN AIRPORT Environment Quality and Customer Service Social Responsibility Sustainability Performance 10

11 Aeronautical Business Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenues 4Q17

12 Aeronautical Business Connectivity & New Routes 4 1 n e w d i r e c t r o u t e s i n Domestic Routes International Routes n e w d i r e c t r o u t e s i n 1 2 M 1 7 Domestic Routes Other International Routes % P A X i n Other +4.8% P A X i n % Seats added in c a n c e l l e d r o u t e s i n c a n c e l l e d r o u t e s i n 1 2 M 1 7

13 Aeronautical Business Passenger Traffic 4Q17 Passenger Traffic 12M17 Passenger Traffic Total Pax: 5 million (+1.8%) Total Pax: 19.7 million (+4.8%) 88% Domestic: 4.4 million (+2.0%) 12% International: 0.6 million (+0.6%) 88% Domestic: 17.2 million (+5.1%) 12% International: 2.4 million (+2.8%) At Monterrey Airport Tourist 11% Border Cities 8% CJS +6% CUU Aeromexico regional hub VivaAerobus main base Volaris secondary base Interjet secondary base Regional 31% Metropolitan 50% CUL +8% +11% DGO MZT +6% -7% TRC -4% ZCL +2% REX MTY -14% +2% SLP TAM 0% +10% Note: Percentages in graphs represent Passenger share by type of airport. ZIH +7% ACA (%) YoY 12M17 Passenger Growth -5% 13

14 Aeronautical Business Airline Participation 88% Domestic Passengers 12% International Passengers TAR 2% (+6.4%) Other 5% (+7.4%) Charters 3% (-13.7%) Other 7% (-6.9%) Interjet 17% (-4.6%) VivaAerobus 28% (+17.5%) Interjet 6% (+2.8%) Alaska 7% (+9.8%) United 22% (-5.6%) Volaris 7% (-19.9%) Volaris 21% (-3.6%) Delta 8% (-11.8%) American 21% (+11%) Aeroméxico 27% (-4.2%) Aeroméxico 18% (+16.5%) Note: Percentages in graphs represent 1) Passenger share by category and 2) % change 4Q17 v s 4Q16. 14

15 Aeronautical Business Aeronautical Revenues 4Q17 Domestic Passenger Charges International Passenger Charges Airport Services Aeronautical Revenues Ps % mm 20% of Aeronautical Revenue Ps.717mm Ps % +6.7% mm Ps.1,090mm +3.4% 74% of Total Revenue* Ps / PAX 66% of Aeronautical Revenue 14% of Aeronautical Revenue * Total Revenues excluding Construction Revenues 15

16 Non - Aeronautical Business Commercial Strategy Diversification Strategy NAR 4Q17 Historical NAR Growth

17 Non-Aeronautical Business Commercial Strategy Maximize commercial areas Balance between international franchises & local brands Develop premium offerings & loyalty programs Add innovative advertising 29 Commercial Initiatives Implemented in 4Q17 Airport Type Quantity Monterrey and San Luis Potosí Car rental 16 Monterrey Restaurant 7 Monterrey, Mazatlán, and Zihuatanejo Retailer 3 Monterrey VIP Lounge 1 Culiacán Bank services 1 Tampico Hotel promotion 1 17

18 Non-Aeronautical Business Diversification Strategy NH Collection Hotel at Mexico City Airport Hilton Garden Inn Hotel in MTY 16.9% 17.4% of NAR 287 Rooms Avg. Room Rate:Ps.2,226 Ps.2,324 per night (+5.1% yoy) Occupancy Rate: 89% 88% EBITDA Margin: 38.6% 38.3% 6.1% 5.8% of NAR 134 Rooms Avg. Room Rate: Ps.1,960 Ps.2,023 per night (+3. Occupancy Rate: 77% 73% EBITDA Margin: 37.4% 38.4% OMA Carga Real Estate Industrial Park In MTY % of NAR +9.1% revenues in 4Q17 1.0% of NAR % revenues in 4Q17 1,650m 2 New ground cargo facility started operations on February 16, % of NAR Ps.3,620 mm 3 warehouses leased 5 warehouses signed in 4Q18; revenue starts in 2Q18 and 3Q18 1 warehouse in commercialization 1 warehouse under construction 18

19 Non-Aeronautical Business NAR 3Q17 Commercial Activities Diversification Activities Complementary Activities Non- Aeronautical Revenues Ps.138 mm +7.2% Ps.390mm +8% 35% of NAR 26% of Total Rev.* Ps / PAX Ps.193 mm +8.6% Ps.60 mm +8% 49% of NAR 15% of NAR * Total Revenues excluding Construction Revenues 19

20 1,600 1,400 1,200 1, 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 NAR - Commercial/PAX NAR - Diversification/PAX NAR Complementary/PAX NAR PAX +360% CAGR PAX +8.9% NAR +16.3% NAR/PAX +6.8% Base = % 16% % 61 21% 17% 32% 35% 36% 27 7% 4% % 12% 4% 9% 3% 8% 42 8% 25% 89% 89% 84% 83% 67% 50 18% 7% 28% 29% 28% 64% 54% 51% 28% 51% 51% 49% +67% 48%

21 Financial Results Q17 Highlights Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution

22 Financial Results 4Q17 Highlights Revenues* Cost of Services and G&A Adjusted EBITDA** Consolidated Net Income Ps. 1,058 mm +23.3% Ps % mm Ps / PAX (+21.1%) Ps / PAX (+7.6%) Ps. 1, % mm Ps % mm Ps / PAX (+2.7%) Ps / PAX (+11.6%) Aeronautical +3.4% Non-Aero. +8% 4Q17 Margin 67.5% * Total Revenues excluding Construction Revenues ** Adjusted EBITDA Margin = Adjusted EBITDA / (Aeronautical + Non-Aeronautical Revenues). Adjusted EBITDA = Operating income + Depreciation and Amortization + Maintenance Provision. 22

23 Financial Results Cost & Efficiency Costs and expenses control has contributed to the generation of EBITDA Aj EBITDA / PAX AR+NAR / PAX Total Operating Costs and Expenses 1 / PAX CAGR % 5.9% % Distribution of Operating Costs and Expenses* 11% 12% 11% 5% 23% 38% Cost of Services Administrative Expenses Depreciation & Amortization Concession taxes Major Maintenance Provision Technical Assistance Fee Cost Control Strategy Economies of scale Generation and purchase of green power Development a culture of savings Use of innovative technology Improvement of operational systems Development of human capital *As of December 31, Excluding construction cost and other expenses (revenues). 23

24 Financial Results Balance Sheet Strong Financial Position * Low Leverage vs Industry * Ps.Million Net Debt / Adjusted EBITDA 4,633 2, , Total Debt Cash Net Debt Debt Profile * Capital Structure Improvement * Total Debt Shareholders Equity Short Term 1% USD 3% 25% 33% 44% 44% 41% 39% 75% 67% 56% 56% 59% 61% Long Term 99% MXN 97% *Information as of December 31,

25 Financial Results Profitability Indicators ROA / ROE Percentage CAGR ROA +14.1% ROE +19% EPS +22.8% Earnings per Share Pesos

26 Financial Results Value Distribution Dividend or Capital Reimbursement Ps. Million Dividend Yield / Payout Ratio Percentage Percentage 1,600 1, ,200 1,200 1, Note: The amounts shown were paid in the following year, after the annual shareholder meeting. 1 The payment was made on May 16, Dividend Yield was calculated with the stock price at the end of each year. 26

27 M D P & M a x i m u m Rates Investments New Terminals Maximum Rates

28 1,800 1,600 1,400 1,200 1, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% MDP & Maximum Rates Investments Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 Visibility of capital expenditure requirements through ,586 1,522 Zacatecas, 2% Mazatlán, 3% Torreón, 3% 1157 Durango, 3% Ciudad Juárez, 4% Culiacán 4% Monterrey 28% Tampico 6% 29% 28% 21% % 466 9% Zihuatanejo 7% Reynosa 8% San Luis Potosí 9% Chihuahua 10% Acapulco 13%

29 MDP & Maximum Rates Investments Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 Most Important Projects Other Terminal Expansion Monterrey Ciudad Juárez Chihuahua San Luis Potosí Tampico ICAO Certification Operational Infrastructure Expansion 11% 7% 6% Terminal Expansion & Remodeling New Terminals Acapulco Reynosa Major Maintenance 11% 49% Operational Infrastructure Monterrey Culiacán Durango Security, Safety & IT Equipment 16% + Expected Strategic Investment 2017 Ps mm 29

30 MDP & Maximum Rates New Terminals Acapulco Airport Investment Capacity Comfort Total Area Start of Operations Ps.547 mm Total PAX mm , +18% 3 levels plus a mezzanine 15,326 m 2* Terminal building, m 2 +13% Commercial spaces, m 2 +42% April 2018 ** * New terminal net surface ** Expected 30

31 MDP & Maximum Rates New Terminals Reynosa Airport Investment Capacity Comfort Total Area Start of Operations Ps.314 mm Total PAX mm , +233% 2 levels 7,590 m 2* Terminal building, m % Commercial spaces, m % 4Q 2018 ** * New terminal net surface ** Expected 31

32 MDP & Maximum Rates Expansion & Remodeling Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Ps.359 mm Total PAX mm , +200% 3,832 m 2 10,398 m 2* Terminal building, m % Commercial spaces, m % 1Q 2019 ** * Net surface after remodeling and expansion ** Expected 32

33 MDP & Maximum Rates Expansion & Remodeling Terminals Chihuahua Airport Investment Capacity Total Area Start of Operations Ps.311 mm Total PAX mm , +89% 7,951 m 2 12,929 m 2* Terminal building, m 2 +63% Commercial spaces, m 2 +30% 4Q 2018 ** * Net surface after remodeling and expansion ** Expected 33

34 MDP & Maximum Rates Maximum Rates Visibility on Aeronautical Revenues Through 2020 Maximum rate (Regulated revenue per workload unit) 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% 99.40% MT Compliance 93.70% 94.5% (2) 13 Airports MT MT MT Maximum Minimum 217 (ACA) 143 (SLP) 280 (ACA) 180 (SLP) 290 (ACA) 187 (SLP) Weighted average (1) Average rate increase (3) +9.4% Domestic Passenger Charges +6.3% International Passenger Charges +6.3% in SAEs 1 Weighted average using passenger traffic for each period and expressed in constant pesos of December 31, 2017 considering efficiency factor effect 2 Considering an PPI as of December 31, 2017 of +4.4% 3 As of January 31,

35 Outlook and Industry 1 2 Industry Trends Airline Fleets: Orders and Expected 3 Load Factor

36 Outlook and Industry Industry Trends Air Industry Low Penetration in Mexico Projected Domestic Passenger Traffic CAGR % 4.8% 4.8% 5.1% 3.5% % 2.3% Argentina Mexico Brazil Chile Canada United States United States Canada Russia Mexico Brazil Brazil Central America Source: World Bank. Latest information available of 2016 Source: Airbus. (Global Market Forecast ) 36

37 Available Seats Fleet Outlook and Industry Airline Fleets: Orders and Expected Historical Airline Fleets and Available Seats Airplanes E ,321 14,944 15,335 16,723 17,895 6,222 6,594 7,917 8,722 10,464 7,230 8,160 9,296 12,282 12,948 2,812 2,972 3,472 3,600 4, Source: Airlines latest fleet information available. Estimated seats, based in fleet. 37

38 Outlook and Industry Airline Fleets: Orders and Expected Airline Expansion Orders ( ) Aeromexico Interjet Vivaaerobus Volaris TAR Source: DGAC, Airlines. Latest information available. 38

39 Outlook and Industry Load Factor Load Factor ( ) CAGR = 2.8% During 2016, in our 13 Airports we had an increase of +1.0% to 75.4% in load factor In 2016, Culiacán had the highest load factor of 80.7% 74% 75% 68% 72% 72% 72% 70% 65% 63% 57% 59% Note: Load Factor = Total Passengers / Total Available Seats 39

40 G r u p o A e r o p o r t u a r i o d e l C e n t r o N o r t e, S. A. B., d e C. V. Investor Relations Emmanuel Camacho ecamacho@oma.aero