UBS Latin American New Opportunities Conference June 11 th -12 th, 2007
Company Overview OMA operates a diversified portfolio of 13 airports distributed throughout Northern and Central Mexico and is diversified in terms of geography and type of passenger. Passenger Mix* Metropolitan Monterrey Tourist Acapulco Mazatlán Regional & Border Chihuahua Culiacán Zihuatanejo Durango Zacatecas San Luis Potosí International 24% Domestic 76% Torreón Tampico Reynosa Passengers by Airport* Cd. Juárez Regional & Border Cities 32% Metropolitan 43% * Share in total passenger traffic in 1Q 2007 Tourist Destinations 25%
Business Strategy Capitalize on favorable industry dynamics Execute initiatives to grow non-aeronautical revenues Execute investment program to accommodate expected growth
Favorable Industry Dynamics Air passenger traffic in Mexico is growing more rapidly than in previous years, fueled in part by new airlines Terminal Passenger Growth 14.5% 1. Domestic Traffic: entry of new airlines starting in late 2005 4.0% 4.0% Six new airlines: Alma, Avolar, Interjet, Volaris, Viva Aerobus and Aladia last two, based in Monterrey. Mexican Industry 01'- 05' CAGR OMA '01-'05 CAGR OMA 1Q 06 vs 1Q 07 2. International Traffic: Mexico - U.S. bilateral agreement (2006) Increased from 2 to 3 the number of carriers from each country eligible to operate certain routes. Agreement came into force in July 2006. Includes OMA s Acapulco, Mazatlán, and Zihuatanejo airports. Will include Monterrey Airport by October 2007. Sources: Prospectus, SCT.
Routes opened in 1Q 07 Los Ángeles Tijuana Herm osillo Ciudad Juárez Chihuahua 15 total routes opened, 3 of them are international routes. Mazatlán Culiacán Torreón Monterrey Guadalajara Puerto Vallarta Querétaro Celaya Tam pico San Luis Potosí Toluca México Cuernavaca
Strong Traffic Growth Passenger traffic in 1Q 2007 grew above passenger traffic growth in full year 2006 (+11.2%) 1Q 2007 traffic grew 14.5% First months 2007 show passenger traffic growth Quarterly Passenger Traffic Monthly Passenger Traffic, 2007 2,936 2,893 2,951 3,054 3,360 +14.1% +12.1% 1,054 1,012 924 903 +16.7% 1,109 1,294 +17.8% +25.8% 1,155 1,181 980 938 1Q 06 2Q 06 3Q 06 4Q 06 1Q 07 January February March April May Total Traffic *Thousands of passengers 2006 2007
Growth by Airport Growth was distributed across the group 9 of the 13 airports showed year over year growth 7 reported double-digit growth 450 1600 +21.3% 3500 +14.5% 400 350 300 250 200 150 +35.6% +26.5% +21.8% +20.5% -4.5% +24.8% -2.7% +4.2% 1200 800 2800 2100 1400 100 50-4.9% -4.5% +23.7% +5.0% 400 700 0 0 0 REX SLP DGO ZCL TRC TAM CUU CJS ZIH CUL MZT ACA MTY OMA 1Q 06 1Q 07 (Thousands)
Domestic-International Passenger Traffic Traffic growth is generated principally by domestic traffic 1Q 2007 Passenger Mix by Airport 1Q 2006-1Q 2007 Passenger Traffic 100% +22.9% -5.9% 80% 24% 2,075 2,550 861 810 60% 40% 76% 20% 0% REX CJS CUL TAM CUU DGO MTY TRC ZCL SLP ACA ZIH MZT OMA Domestic International Domestic International
Distribution of Total Passengers Distribution 2005 Distribution 1Q06 Distribution 1Q07 General Aviation 2.7% New Airlines 0.2% General Aviation 3.7% New Airlines 2.5% New Airlines, 19.40% General Aviation, 2.10% Traditional Airlines 97.1% Traditional Airlines 93.8% Traditional Airlines, 78.50% New airlines: Interjet, Volaris, Avolar, Vivaaerobus, Alma, y Aladia * Thousand passengers
Summary Financial Results (Millions) 2005 2006 % Var. 1Q 06 1Q 07 % Var. Total Passengers 10.6 11.8 11.2 2.9 3.4 14.5 Total Revenues 1,426 1,626 14.0 397 436 10.0 Income from operations 487 603 23.8 175 172 (1.9) Net income 367 452 23.1 117 124 5.8 EPS (Ps.) 0.94 1.15 22.3 0.30 0.31 3.6 EPADS (US$) 0.69 0.85 22.3 0.22 0.22 3.6 EBITDA 707 885 25.2 229 244 6.6 EBITDA Margin % 49.6 54.4 57.7 55.9
Total Revenues Total revenues IN 1Q 2007 grew Ps. 39.7 million, an increase of 10% compared to 1Q 2006 Full year Revenues by airport Revenues (Millions Ps.) Zihuatanejo 7% Other 19% Monterrey 43% $500 $400 +10% 397 409 417 421 76 80 77 75 436 81 Chihuahua 5% Mazatlán 8% $300 $200 320 329 340 346 356 Culiacán 7% Acapulco 11% $100 1Q06 2Q06 3Q06 4Q06 1Q07 Aeronautical Non-aeronautical
Aeronautical Revenues Aeronautical revenues grew 11% in 1Q 2007 Aeronautical Revenues Composition Aircraft parking charges 7.2% Other 11.6% Aeronautical revenues growth driven by: 17.2% increase in passenger traffic that pay passenger charges (TUA) Landing fees 8.6% 7.6% increase in airport operations Passenger charges 72.6%
Non-Aeronautical Revenue Initiatives The company is implementing an integrated approach to develop additional commercial activities in its airports Retail Air Freight Real Estate OMA Plaza brand Remodel and expand commercial space Optimize mix of retailers and products Improve quality of tenants Royalty-based agreements OMA Carga Operates warehouses Cargo Operations Mail and cargo operations carried out by external carriers Attract investors to develop existing land reserves Projects include industrial parks and commercial centers No investments required by OMA
Non Aeronautical Revenues 2006 Non-aeronautical revenues grew Ps. 4.6 million in 1Q 2007, an increase of 6.1% compared to 1Q 2006 Main increases : Car parks: + Ps. 3.2 million or +15.5% Food and beverage operations: +Ps.1.1 million or +20% Car rentals: + Ps. 1.7 million or +33.3% Main decreases : Duty free operations: -13.5% (new security measures on flights to the United States) Non-Aeronautical Revenues Composition Other 24.2% Car parking charges 29.5% Retail operations 9.4% Food and beverage operations 8.4% Car Rental 8.3% Leasing of space 9.7% Advertising 10.5%
EBITDA Generation EBITDA increased 6.6% to Ps. 244 million 1Q 2007 EBITDA margin of 55.9% 1Q 2007 EBITDA Composition (Millions Ps.) EBITDA Margin (%) 60% 10.0% 19.4% 81 50% 356 Revenues 265 Operating costs 172-1.9% Operating Income 34.2% 6.6% 72 244 D&A EBITDA 40% 30% 2003 2004 2005 2006 1Q 07
Capital Expenditures Commitment investments Master Development Plan (Million Us.) Historical CAPEX (Million Ps.) $80 $60 $40 $20 $0 72 27 39 Total: US$177 million 36 36 26 19 22 17 8 5 17 9 9 7 5 1 2006 2007 2008 2009 2010 Terminals Baggage Screening Equipment Other $450 $350 $250 $150 $50 202 375 269 283 418 182 2002 2003 2004 2005 2006 1Q 07 Annual amounts expressed in million of pesos of purchasing power of December 31st,of 2006 Tourist Regional & Border Metropolitan Main investments activities (2006-2010 PMD): Terminal B (MTY) Runways maintenance OMA expects that capital investments in 2007 will exceed Ps. 500 million.
Closing Remarks Balanced airport portfolio Centered in rapid growth northern region of Mexico Strong, experienced strategic partners Business strategy for growth and profitability Take advantage of favorable industry dynamics Specific initiatives to grow non-aeronautical revenues CAPEX program to accommodate growth Solid operating and financial performance En 1Q 2007 Traffic up 14.5% Revenue up 10% EBITDA margin was 55.9%
http://ir.oma.aero
Disclaimer This presentation contains forward-looking information and statements. Forward-looking statements are statements that are not historical facts. These statements are only predictions based on our current assumptions, expectations and projections about future events. Forward-looking statements may be identified by the words believe, expect, anticipate, target, 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, which 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 Prospectus under the caption Risk Factors. Further, if OMA s actual results are less favorable than those shown in the projections or if the assumptions used in the projections prove to be incorrect, OMA may not be able to make dividend payments in the amount forecasted, or at all. OMA undertakes no obligation to publicly update its forward-looking statements, whether as a result of new information, future events, or otherwise, nor makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied upon as a promise or representation. Management is not making and you should not infer any representation about the likely existence of any particular future set of facts or circumstances. EBITDA represents net income minus net comprehensive financing income and other income (expenses), plus income taxes, asset tax, statutory employee profit sharing and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance, or as an alternative to cash flow as an indicator of liquidity. Our management believes that EBITDA provides a useful measure of our performance that is widely used by investors and analysts to evaluate our performance and compare it with other companies, however it may be calculated differently by different companies. Figures in constant pesos as of March 31, 2007 converted to U.S. dollars (US$) at an exchange rate of Ps.11.0336/US$1.00