Grupo Aeroportuario del Centro Norte SAB de CV SECOND QUARTER 2018 RESULTS

Transcription

1 Grupo Aeroportuario del Centro Norte SAB de CV SECOND QUARTER 2018 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 20 million passengers in LTM June 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 900 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 the main index of the BMV (IPC) 3

4 Company Overview Aeronautical Business Non- Aeronautical Business Financial Results MDP & Maximum Rates Outlook and Industry Value Proposition Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability Connectivity & New Routes Passenger Traffic Airline Participation AR 2Q18 Commercial Strategy Diversification Strategy NAR 2Q18 Historical NAR Growth 2Q18 Highlights Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution Investments New Terminals Maximum Rates Industry Trends Airline Fleets 4

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

6 Company Overview Value Proposition High potential portfolio of airports and businesses Sustained passenger growth Visibility in aeronautical tariffs Successful commercial and diversification strategies Commitment to safety, security and sustainability Cost and expenses 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 2011-LTM Jun18 PAX 8.2% Revenues¹ 14.3% Adjusted EBITDA 19.2% Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) , ,065 2,820 24% 2,459 23% 2,144 19% 1,897 1,988 1,896 19% 19% 19% 18% 19% 81% 81% 81% 82% 81% 81% 77% 76% , ,205 26% 4,145 26% 24% 74% 74% 76% ,262 27% 73% LTM Jun18 % Adj. EBITDA 2 56% 53% 51% 44% 51% 54% 55% 55% 59% 64% 66% 68% Note: From 2010 to LTM Jun18 figures expressed under IFRS; figures expressed under Mexican Financial Reporting Standards. 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 for the last twelve months as of June 30,

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. $40.8 / USD Bn. $2.1 Note: Shareholding information as of June 30, 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 June 30, Exchange rate used:

9 Company Overview Board of Directors & Management Team EXPERIENCED MANAGEMENT TEAM (Average time with OMA: 9 years) Porfirio González Chief Executive Officer With the Company since 1998 CORPORATE GOVERNANCE 5 of 11 Directors are independent Board Audit and Corporate Practices Commitees are 100% independent Ruffo Pérez Pliego Chief Financial Officer With the Company since 2018 Adriana Díaz Galindo General Counsel With the Company since 2018 Héctor Cortés Chief Commercial Officer With the Company since 2001 Enrique Navarro Airport Operations Director With the Company since 2004 Enrique Chacón Infrastructure Director With the Company since

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

11 Aeronautical Business Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenues 2Q18 11

12 Aeronautical Business Connectivity & New Routes 4 4 n e w d i r e c t r o u t e s i n Domestic Routes n e w d i r e c t r o u t e s i n 6 M 1 8 Domestic Routes Other 2 2 Other International Routes % P A X i n Other +2.0% Seats added in 2017 International Routes % P A X i n 6 M % Seats added in 6M18 12

13 Aeronautical Business Passenger Traffic 2Q18 Passenger Traffic 6M18 Passenger Traffic Total Pax: 5.4 million (+9.6%) 89% Domestic: 4.8 million (+10.6%) 11% International: 0.6 million (+2.2%) Total Pax: 10.3 million (+8.8%) 87% Domestic: 8.9 million (+9.5%) 13% International: 1.3 million (+4.2%) At Monterrey Airport Tourist 10% Border Cities 9% CJS +16% CUU Aeromexico regional hub VivaAerobus main base Volaris secondary base Interjet secondary base Regional 31% Metropolitan 50% CUL +7% +25% DGO MZT +5% +3% TRC +3% ZCL -3% REX MTY -14% +9% SLP TAM +5% +15% ZIH Note: Percentages in graphs represent Passenger share by type of airport. (%) YoY 6M18 Passenger Growth -7% ACA +5% 13

14 Aeronautical Business Airline Participation LTM Jun18 United Airlines 3% (+3.9%) Other 12% (+3.2%) Aeroméxico 26% (+1.6%) 90% Domestic Passengers Magnicharter 2% (+6.2%) Interjet 17% (+0.1%) Volaris 20% (+2.1%) Other 5% (+9.8%) VivaAerobus 28% (+16.5%) Interjet 15% (+1.3%) Aeroméxico 27% (+0.3%) Volaris 19% (+1.4%) VivaAerobus 25% (+16.2%) Interjet 7% (+28.4%) Volaris 8% (-10.1%) Other 11% (+6.6%) United Airlines 21% (+3.9%) 10% International Passengers Delta 9% (-12.5%) Aeroméxico 17% (+17.9%) American Airlines 21% (+0.2%) Note: Percentages in graphs represent 1) Passenger share by category and 2) % change LTM Jun18 v s LTM Jun17 14

15 Aeronautical Business Aeronautical Revenues 2Q18 Domestic Passenger Charges International Passenger Charges Airport Services Aeronautical Revenues Ps % mm Ps.1, % mm 19% of Aeronautical Revenue 76% of Total Revenue* Ps / PAX Ps % mm Ps.174 mm +6.3% 67% of Aeronautical Revenue 14% of Aeronautical Revenue * Total Revenues excluding Construction Revenues 15

16 Non - Aeronautical Business Commercial Strategy Diversification Strategy NAR 2Q18 Historical NAR Growth 16

17 Non-Aeronautical Business Commercial Strategy Optimize passenger exposure to commercial areas Increase of international brands complemented with local offering Develop premium offerings Maintain high occupancy rates Add innovative advertising 33 Commercial Initiatives Implemented in 2Q18 Airport Type Quantity Acapulco, Ciudad Juárez, Chihuahua, Monterrey, and Reynosa Retail 11 Acapulco, Ciudad Juárez, Monterrey, and Torreón Restaurants 10 Acapulco, Durango, Monterrey and Torreón Car Rental 8 Ciudad Juárez and Culiacán Bank Services 2 Culiacán Hotel Promotion 1 Acapulco VIP Lounge 1 17

18 Non-Aeronautical Business Diversification Strategy NH Collection Hotel at Mexico City Airport Hilton Garden Inn Hotel in MTY 14.1% 17.4% of NAR 287 Rooms Avg. Room Rate:Ps.2,226 Ps.2,252 per per night (+5.1% yoy) Occupancy Rate: 88% 78% EBITDA Margin: 38.3% 33.5% 6.1% 6.4% of NAR 134 Rooms Avg. Room Rate: Ps.2,023 Ps.2,252 per night (+3. Occupancy Rate: 73% 77% EBITDA Margin: 38.4% 39.7% OMA Carga Real Estate Industrial Park in MTY 12.2% of NAR +32.2% revenues in 2Q18 1.0% of NAR +15.2% revenues in 2Q18 1.4% of NAR Ps.5.8 million 1,650m 2 New ground cargo facility started operations on February 16, warehouses leased 5 warehouses generating revenue 1 warehouse under construction for commercialization 18

19 Non-Aeronautical Business 2Q18 Commercial Activities Diversification Activities Complementary Activities Non- Aeronautical Revenues Ps.142 mm +10.1% Ps.401mm +11.3% 35% of NAR 24% of Total Rev.* Ps / PAX Ps.193 mm +11.8% Ps.66 mm +12.3% 49% of NAR 16% of NAR * Total Revenues excluding Construction Revenues 19

20 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 CAGR LTM Jun18 PAX +8.2% NAR +14.7% NAR/PAX +5.9% % 75 16% 66 16% % 50 16% 7% 29% 28% 28% 64% 56% 53% 61 19% 28% 53% 17% 31% 51% 35% 49% 36% 36% 48% 48% +161% +74% LTM Jun18 20

21 Financial Results Q18 Highlights Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution 21

22 Financial Results 2Q18 Highlights Revenues* Cost of Services and G&A Adjusted EBITDA** Consolidated Net Income Ps % mm Ps % mm Ps / PAX (-16%) Ps / PAX (+27.1%) Ps. 1, % mm Ps. 1, % mm Ps / PAX (+5.9%) Ps / PAX (+14.7%) Aeronautical +17.6% Non-Aero % 2Q18 Margin 70.5% * 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 EBITDA growth Adj. EBITDA / PAX AR+NAR / PAX² Total Operating Costs and Expenses/ PAX CAGR LTM Jun % 5.6% LTM Jun18-0.5% Distribution of Operating Costs and Expenses¹ 12% 13% 8% 7% 22% 39% Cost of Services Administrative Expenses Depreciation & Amortization Concession taxes Major Maintenance Provision Technical Assistance Fee Cost Control Strategy Seek operational leverage Energy management through consumption savings and purchase of renewable energy Development of a culture of savings Optimization of contracted services Improvement of operational systems Management of human capital ¹As of June 30, Excluding construction cost and other expenses (revenues). ²Excludes Construction Cost, M ajor M aintenance Provision and Other Expenses 23

24 Financial Results Balance Sheet Strong Financial Position Ps.Million Low Leverage Net Debt / Adjusted EBITDA 4,610 1,624 2, Total Debt Cash Net Debt LTM Jun18 Debt Profile Capital Structure Evolution Total Debt Shareholders Equity (Book Value) Short Term 1% USD 3% 25% 33% 44% 44% 41% 39% 40% 75% 67% 56% 56% 59% 61% 60% Long Term 99% MXN 97% Jun18 24

25 Financial Results Profitability Indicators ROA / ROE Percentage 36.3 CAGR LTM Jun18 ROA +15.3% ROE +20.0% EPS +22.6% LTM Jun18 Earnings per Share Pesos LTM Jun18 25

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

27 M D P & Maximum Rates Investments New Terminals Maximum Rates 27

28 2,500 2,000 1,500 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 ,377 Committed Zacatecas, 2% Actual / Expected Mazatlán, 3% Torreón, 3% 1,586 1,522 1,428 1,157 Durango, 3% Ciudad Juárez, 4% Culiacán 4% Tampico 6% Monterrey 28% 452 8% 26% 44% % % Zihuatanejo 7% Reynosa 8% San Luis Potosí 9% Chihuahua 10% Acapulco 13% e 2019e 2020e MDP = Master Development Program 28

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% 0% 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 2018 Ps.100 mm 29

30 MDP & Maximum Rates New Terminals Acapulco Airport m 2 Investment Capacity Comfort Total Area Start of Operations Ps.615 mm Total PAX mm , +18% 3 levels plus a mezzanine 13,534 m 2 15,326 m 2* Terminal building, m 2 +13% Commercial spaces, m 2 +42% April 17, 2018 * New terminal net surface 30

31 MDP & Maximum Rates New Terminals Reynosa Airport Investment Capacity Comfort Total Area Start of Operations Ps.327 mm Total PAX mm , +200% 2 levels 2,608 m 2 7,590 m 2* Terminal building, m % Commercial spaces, m % 4Q 2018 ** * New terminal net surface ** Expected 31

32 MDP & Maximum Rates Expansion & Remodeling of Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Ps.366 mm Total PAX mm , +160% 3,832 m 2 10,398 m 2* Terminal building, m % Commercial spaces, m % 1 st phase in August, 2018 and fully completed in 1Q 2019 ** * Net surface after remodeling and expansion ** Expected 32

33 MDP & Maximum Rates Expansion & Remodeling of Terminals Chihuahua Airport Investment Capacity Total Area Start of Operations Ps.322 mm Total PAX mm , +78% 7,951 m 2 13,074 m 2* Terminal building, m 2 +64% Commercial spaces, m 2 +30% 4Q 2018 ** * Net surface after remodeling and expansion ** Expected 33

34 MDP & Maximum Rates Expansion & Remodeling of Terminals Monterrey Airport Regional Boarding Area Investment Capacity Total Area Start of Operations Ps.125 mm Total PAX mm , +39% 87 m m 2* Terminal building, m % Commercial spaces, m 2 +12% August 2018 ** * Net surface after remodeling and expansion ** Expected 34

35 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% 99.4% MT Recovery 98.9% 93.7% 94.5% M (2) 13 Airports MT Maximum Minimum 288 (ACA) 186 (SLP) Weighted average (1) Weighted average using passenger traffic for each period and expressed in constant MXN of December 31, 2017 considering efficiency factor effect 2 MXN of December 31,

36 Outlook and Industry 1 2 Industry Trends Airline Fleets 36

37 Outlook and Industry Industry Trends Air Industry has Low Penetration in Mexico Flights per capita per year Projected Passenger Traffic CAGR Domestic Traffic, except Mexico-USA % 4.6% 4.8% 3.4% 3.7% % 2.4% Argentina Mexico Brazil Chile Canada United States United States Canada Russia Mexico - USA Mexico Central America South America Source: World Bank. Latest information available of 2017 Source: Airbus. (Global Market Forecast ) 37

38 Available Seats Fleet Outlook and Industry Airline Fleets Historical Airline Fleets and Available Seats Airplanes Q ,321 14,944 15,335 16,723 18,268 18,316 6,222 6,594 7,917 8,722 10,698 10,698 7,230 8,160 9,296 12,282 12,574 12,542 2,812 2,972 3,472 3,600 4,512 4, Source: Airlines latest fleet information available. Estimated seats, based on fleet. 38

39 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. Chief Financial Officer Ruffo Pérez Pliego rperezpliego@oma.aero Investor Relations Emmanuel Camacho ecamacho@oma.aero