INVESTOR PRESENTATION FOURTH QUARTER 2017 RESULTS

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Transcription:

INVESTOR PRESENTATION FOURTH QUARTER 2017 RESULTS

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

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 2017. 2 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

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 2016-2020 New Terminals Maximum Rates Industry Trends Airline Fleets: Orders and Expected Load Factor

C o m p a n y O verview 1 2 3 4 5 Value Proposal Historical Performance Shareholder Structure Board of Directors and Management Team Operations & Sustainability

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

6,000 4,000 2,000-20.0 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 Company Overview Historical Performance Sustained positive trends through economic and business cycles CAGR 2011-2017 PAX 8.9% Revenues 15.4% Adjusted EBITDA 20.5% Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 14.2 14.1 13.3 12.6 11.8 11.5 11.6 11.8 3,065 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% 18.8 16.9 5,205 14.7 4,145 26% 3,422 24% 24% 74% 76% 76% 19.7 3 5,803 26% 74% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 % Adj. EBITDA 2 54% 56% 53% 51% 44% 51% 54% 55% 55% 59% 64% 66% Note: From 2010 to 2016 figures expressed under IFRS; 2001-2009 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, 2017 7

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, 2017 1 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.101.67 as of December 31, 2017. Exchange rate used: 19.7354 8

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 2001 9

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

Aeronautical Business 1 2 3 4 Connectivity & New Routes Passenger Traffic Airline Participation Aeronautical Revenues 4Q17

Aeronautical Business Connectivity & New Routes 4 1 n e w d i r e c t r o u t e s i n 2 0 1 6 Domestic Routes 4 16 4 8 International Routes 1 2 4 4 n e w d i r e c t r o u t e s i n 1 2 M 1 7 Domestic Routes 11 5 5 3 6 Other International Routes 5 5 1 +10.9% P A X i n 2 0 1 6 4 5 Other +4.8% P A X i n 2 0 1 7 +2.0% Seats added in 2017 1 2 c a n c e l l e d r o u t e s i n 2 0 1 6 5 8 c a n c e l l e d r o u t e s i n 1 2 M 1 7

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

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

Aeronautical Business Aeronautical Revenues 4Q17 Domestic Passenger Charges International Passenger Charges Airport Services Aeronautical Revenues Ps.215-2.2% mm 20% of Aeronautical Revenue Ps.717mm Ps.158 +4.6% +6.7% mm Ps.1,090mm +3.4% 74% of Total Revenue* Ps. 217.6 / PAX 66% of Aeronautical Revenue 14% of Aeronautical Revenue * Total Revenues excluding Construction Revenues 15

Non - Aeronautical Business 1 2 3 4 Commercial Strategy Diversification Strategy NAR 4Q17 Historical NAR Growth

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

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 10.4.0% of NAR +9.1% revenues in 4Q17 1.0% of NAR -0.3.0% revenues in 4Q17 1,650m 2 New ground cargo facility started operations on February 16, 2017 0.9% 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

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. 77.9 / PAX Ps.193 mm +8.6% Ps.60 mm +8% 49% of NAR 15% of NAR * Total Revenues excluding Construction Revenues 19

1,600 1,400 1,200 1,000 800 600 400 200-440 390 340 290 240 190 140 90 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 2011-2017 PAX +8.9% NAR +16.3% NAR/PAX +6.8% Base = 2005 66 71 74 16% 16% 55 60 21% 61 21% 17% 32% 35% 36% 27 7% 4% 24 26 32 8% 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% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20

Financial Results 1 2 3 4 5 4Q17 Highlights Cost & Efficiency Balance Sheet Profitability Indicators Value Distribution

Financial Results 4Q17 Highlights Revenues* Cost of Services and G&A Adjusted EBITDA** Consolidated Net Income Ps. 1,058 mm +23.3% Ps. 625 +9.5% mm Ps. 211.1 / PAX (+21.1%) Ps. 124.7 / PAX (+7.6%) Ps. 1,480 +4.6% mm Ps. 999 +13.6% mm Ps. 295.5 / PAX (+2.7%) Ps. 199.4 / 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

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 2011-2017 10.6% 5.9% 2011 2012 2013 2014 2015 2016 2017-0.2% 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, 2017. Excluding construction cost and other expenses (revenues). 23

Financial Results Balance Sheet Strong Financial Position * Low Leverage vs Industry * Ps.Million Net Debt / Adjusted EBITDA 4,633 2,333 0.9 1.0 0.8 2,300 0.6 0.5 0.6 Total Debt Cash Net Debt 2012 2013 2014 2015 2016 2017 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% 2012 2013 2014 2015 2016 2017 *Information as of December 31, 2017 24

35.0 30.0 25.0 20.0 15.0 10.0 5.0 - Financial Results Profitability Indicators ROA / ROE Percentage CAGR 2011-2017 ROA +14.1% ROE +19% EPS +22.8% 6.6 10.1 8.2 12.8 10.9 18.8 8.3 16.8 9.9 20.8 13.8 28.0 28.8 14.7 2011 2012 2013 2014 2015 2016 2017 Earnings per Share Pesos 4.8 5.3 1.5 2.1 3.0 2.6 3.1 2011 2012 2013 2014 2015 2016 2017 25

250 200 150 100 50-9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 - Financial Results Value Distribution Dividend or Capital Reimbursement Ps. Million Dividend Yield / Payout Ratio Percentage Percentage 1,600 1,400 8.6 1,200 1,200 1,200 6.9 5.7 147 4.4 4.2 4.5 117 113 500 81 100 85 2011 2012 2013 2014 2015 2016 Note: The amounts shown were paid in the following year, after the annual shareholder meeting. 1 The payment was made on May 16, 2017. 2011 2012 2013 2014 2015 2016 Dividend Yield was calculated with the stock price at the end of each year. 26

M D P & M a x i m u m Rates 1 2 3 Investments 2016-2020 New Terminals Maximum Rates

1,800 1,600 1,400 1,200 1,000 80 60 40 20 0 10% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% MDP & Maximum Rates Investments 2016-2020 Total Committed Investment Ps.5,443mm pesos of Dec. 31, 2017 Visibility of capital expenditure requirements through 2020 1,586 1,522 Zacatecas, 2% Mazatlán, 3% Torreón, 3% 1157 Durango, 3% Ciudad Juárez, 4% Culiacán 4% Monterrey 28% Tampico 6% 29% 28% 21% 711 13% 466 9% Zihuatanejo 7% Reynosa 8% San Luis Potosí 9% Chihuahua 10% Acapulco 13% 2016 2017 2018 2019 2020 28

MDP & Maximum Rates Investments 2016-2020 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.150-200 mm 29

MDP & Maximum Rates New Terminals Acapulco Airport Investment Capacity Comfort Total Area Start of Operations Ps.547 mm Total PAX mm 1.1 1.3, +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

MDP & Maximum Rates New Terminals Reynosa Airport Investment Capacity Comfort Total Area Start of Operations Ps.314 mm Total PAX mm 0.3 1.0, +233% 2 levels 7,590 m 2* Terminal building, m 2 +191% Commercial spaces, m 2 +213% 4Q 2018 ** * New terminal net surface ** Expected 31

MDP & Maximum Rates Expansion & Remodeling Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Ps.359 mm Total PAX mm 0.4 1.2, +200% 3,832 m 2 10,398 m 2* Terminal building, m 2 +171% Commercial spaces, m 2 +116% 1Q 2019 ** * Net surface after remodeling and expansion ** Expected 32

MDP & Maximum Rates Expansion & Remodeling Terminals Chihuahua Airport Investment Capacity Total Area Start of Operations Ps.311 mm Total PAX mm 0.9 1.7, +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

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% 2015 2016 2017 2015 2016 2017 (2) 13 Airports MT MT MT Maximum Minimum 217 (ACA) 143 (SLP) 280 (ACA) 180 (SLP) 290 (ACA) 187 (SLP) Weighted average (1) 177 222 248 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, 2018. 34

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

Outlook and Industry Industry Trends Air Industry Low Penetration in Mexico Projected Domestic Passenger Traffic CAGR 2016-2036 2.4 2.5 4.4% 4.8% 4.8% 5.1% 3.5% 0.9 2.0% 2.3% 0.3 0.4 0.5 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 2017-2036) 36

Available Seats Fleet Outlook and Industry Airline Fleets: Orders and Expected Historical Airline Fleets and Available Seats Airplanes 133 129 124 125 117 2013 2014 2015 2016 2017E 77 70 69 56 56 51 50 45 44 73 19 19 21 21 23 0 3 8 10 10 13,321 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 4,324 400 700 500-150 Source: Airlines latest fleet information available. Estimated seats, based in fleet. 37

Outlook and Industry Airline Fleets: Orders and Expected Airline Expansion Orders (2013 2022) 100 80 52 47 20 Aeromexico Interjet Vivaaerobus Volaris TAR Source: DGAC, Airlines. Latest information available. 38

Outlook and Industry Load Factor Load Factor (2006 2016) 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% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Note: Load Factor = Total Passengers / Total Available Seats 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. Investor Relations Emmanuel Camacho ecamacho@oma.aero +52.81.8625.4308