INVESTOR PRESENTATION SECOND QUARTER 2017 RESULTS

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Transcription:

INVESTOR PRESENTATION SECOND 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 18.8 million passengers in 2016. 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 2Q17 Commercial Strategy Diversification Strategy NAR 2Q17 Historical NAR Growth 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

21.0 19.0 17.0 15.0 13.0 11.0 9.0 7.0 5.0 3.0 Company Overview Historical Performance Sustained positive trends through economic and business cycles 7,500 6,500 4,500 3,500 2,500 1,500 500 CAGR 2011-LTM2Q17 PAX Revenues 5,500 Adjusted EBITDA 11.8 1,687 19% Aeronautical Revenues Non-Aeronautical Revenues Passenger Traffic (million) 18.8 +8.8% +14.7% +19.4% 14.2 14.1 11.5 11.6 11.8 1,897 1,988 1,896 2,144 18% 19% 19% 23% 2,459 81% 82% 81% 81% 77% 76% 76% 74% 74% 24% 12.6 2,820 24% 13.3 3,065 26% 14.7 3,422 26% 16.9 4,145 27% 73% 5,205 26% 74% 19.5 5,600 25% 75% (500) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM 6M17 % Adj. EBITDA 2 54% 56% 53% 51% 44% 51% 54% 55% 55% 59% 64% 65% 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. 7

Company Overview Shareholder Structure 85.5% Public Float 2 - B Shares 12.6% SETA 1 BB shares 1.9% CONOISA 1 B shares Market Cap 3. MxN Bn Ps.43.2 / USD Bn $2.4 Note: Share holding information as of June 30, 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 BMV Price Ps.109.68 as of June 30, 2017. Exchange rate used: 18.0279 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 Vicsaly Torres Chief Financial Officer With the Company since 2006 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 New Businesses and Diversification Director 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 2Q17

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 1 5 n e w d i r e c t r o u t e s i n 6 M 1 7 Domestic Routes Milwaukee Detroit Chicago 4 Tijuana Ciudad Juárez 16 Hermosillo Obregón Chihuahua 4 Culiacán Monterrey 8 International Routes Guadalajara Puerto Vallarta Bajío Querétaro Ciudad de México Cancún 1 Zihuatanejo Acapulco 2 5 1 +10.9% P A X i n 2 0 1 6 4 3 2 2 2 1 1 1 2 c a n c e l l e d r o u t e s i n 2 0 1 6 4 5 c a n c e l l e d r o u t e s i n 6 M 1 7

Aeronautical Business Passenger Traffic 2Q17 Passenger Traffic 6M17 Passenger Traffic Total Pax: 4.9 million (+8.3%) 88% Domestic: 4.3 million (+8.8%) 12% International: 0.6 million (+4.9%) Total Pax: 9.5 million (+8.5%) 87% Domestic: 8.2 million (+9.2%) 13% International: 1.3 million (+4.6%) Tourist 11% Regional 30% Border Cities 9% Metropolitan 50% +7% CJS CUL CUU +20% TRC +14% DGO MZT +6% -7% ZCL +10% At Monterrey Airport Aeromexico regional hub VivaAerobus main base and headquarters Volaris secondary base Interjet secondary base -1% MTY +9% REX SLP TAM +1% +11% -9% Note: Percentages in graphs represent Passenger share by type of airport. 13 (%) YoY 6M17 Passenger Growth ZIH +25% ACA 0%

Aeronautical Business Airline Participation 88% Domestic Passengers 12% International Passengers Interjet, 18% (+4.3%) TAR, 2% (-2.2%) Other, 6% (+4.9%) VivaAerobus, 28% (+37.6%) Interjet, 6% (-8.3%) Other, 6% (-6.9%) VivaAerobus, 2% (-13.9%) Alaska, 4% (+0%) American, 22% (+3.7%) Volaris, 10% (+41.5%) Delta, 12% (+10.7%) United, 22% (-0.4%) Volaris, 19% (-4.3%) Aeroméxico, 27% (+1.3%) Aeroméxico, 16% (+7.4%) Note: Percentages in graphs represent 1) Passenger share by category and 2) % change 2Q17 vs 2Q16. 14

Aeronautical Business Aeronautical Revenues 2Q17 Domestic Passenger Charges International Passenger Charges Airport Services Aeronautical Revenues Ps.225mm +22.5% Ps.1,079mm +13.0% 21% of Aeronautical Revenue 75% of Total Revenue* Ps. 219.6 / PAX Ps.691mm +13.2% Ps.163mm +1.5% 64% of Aeronautical Revenue 15% of Aeronautical Revenue * Total Revenues excluding Construction Revenues 15

Non - Aeronautical Business 1 2 3 4 Commercial Strategy Diversification Strategy NAR 2Q17 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 16 Commercial Initiatives Implemented in 2Q17 Airport Type Quantity Ciudad Juárez, Chihuahua, Culiacán, Reynosa, San Luis Potosí, Tampico, Zacatecas and Zihuatanejo Financial Services 8 Ciudad Juárez, Mazatlán, Reynosa, Culiacán and Torreón Comunications 5 Durango and Monterrey Retailers 2 San Luis Potosí Hotel Promotion 1 17

Non-Aeronautical Business Diversification Strategy NH Collection Hotel at Mexico City Airport Hilton Garden Inn Hotel in MTY 17.4% of NAR 287 Rooms Avg. Room Rate: Ps.2,226 per night (+5.1% yoy) Occupancy Rate: 88% EBITDA Margin: 38.3% 6.1% of NAR 134 Rooms Avg. Room Rate: Ps.2,023 per night (+3.0% yoy) Occupancy Rate: 73% EBITDA Margin: 38.4% OMA Carga Real Estate Industrial Park In MTY 10.3% of NAR +16.6% revenues in 2Q17 1,650m 2 New ground cargo facility started operations on February 16, 2017 1.0% of NAR -6.5% revenues in 2Q17 0.8% of NAR Ps.2,762mm 1 st and 2 nd warehouses leased 2 nd warehouse expansion request to 8,200 m 2 and additional revenue generation since 1Q18 3 rd warehouse leased; revenue generation since 4Q17 4 th warehouse in commercialization process 18

Non-Aeronautical Business NAR 2Q17 Commercial Activities Diversification Activities Complementary Activities Non- Aeronautical Revenues Ps.129mm +13.2% Ps.360mm +6.8% 36% of NAR. 25% of Total Rev. * Ps.73.3 / PAX Ps.172mm +2.0% Ps.59mm +8.1% 48% of NAR 16% NAR * Total Revenues excluding Construction Revenues 19

1,60 0 1,40 0 1,20 0 1,00 0 800 600 400 200-345 295 245 195 145 95 45-5 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 INA/PAX Comercial INA/PAX Diversificación INA/PAX Complementarios INA Total PAX +358% 71 72 CAGR 2011-LTM2Q17 PAX NAR NAR/PAX Base = 2005 +8.8% +15.5% +6.2% 55 60 21% 61 21% 66 17% 32% 16% 35% 16% 35% 26 7% 4% 89% 26 24 32 8% 12% 4% 9% 3% 8% 42 8% 25% 89% 84% 83% 67% 50 18% 7% 28% 29% 28% 64% 54% 51% 28% 51% 51% 49% 49% +66% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM2T17 20

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

Financial Results 2Q17 Highlights Revenues* Total Operating Cost and Expenses Adjusted EBITDA** Consolidated Net Income Ps.949mm +39.9% Ps.510mm +14.4% Ps.193.2 / PAX (+29.2%) Ps.103.7 / PAX (+5.6%) Ps.1,439mm +11.4% Ps.292.8 / PAX (+2.8%) Aeronautical +13.0% Non-Aero +6.8% Ps. 936mm +16.0% Ps.190.6 / PAX (+7.1%) 2Q17 Margin 65.1% * 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 CAGR 2011-LTM2Q17 +9.7% Costs and expenses control has contributed to the generation of EBITDA Aj EBITDA / PAX AR+NAR / PAX Total Operating Costs and Expenses 1 / PAX +5.4% Distribution of Operating Cost and Expenses* 11% 11% 11% 5% 23% 39% Cost of Services *As of June 30, 2017. Excluding construction cost and other expenses (revenues). Administrative Expenses Depreciation and Amortization Concession Taxes Major Maintenance Provision Technical Assistance Fee 2011 2012 2013 2014 2015 2016 LTM2Q17 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 +0.1% 1 Total Operating Cost and Expenses excluding construction cost, maintenance provision and other expenses (revenues). 23

Financial Results Balance Sheet Strong Financial Position * Low Leverage vs Industry * Ps.Million Net Debt / Adjusted EBITDA 4,643 1,886 0.9 1.0 0.8 0.8 2,757 0.6 0.5 Total Debt Cash Net Debt Debt Profile * 2012 2013 2014 2015 2016 LTM 2Q17 Capital Structure Improvement * Total Debt Shareholders Equity Short Term 1% USD 3% 25% 33% 44% 44% 41% 43% Long Term 99% MXN 97% 75% 67% 56% 56% 59% 57% 2012 2013 2014 2015 2016 LTM 2Q17 *Information as of June 30, 2017 24

Financial Results Profitability Indicators ROA / ROE 35.0 32.8 30.0 25.0 20.0 15.0 10.0 Percentage CAGR 2011-LTM2Q17 ROA ROE Earnings per Share 6.6 10.1 8.2 +15.3% +21.6% +21.8% 12.8 10.9 18.8 8.3 16.8 9.9 20.8 13.9 28.0 15.6 5.0-2011 2012 2013 2014 2015 2016 LTM 2Q17 Earnings per Share Pesos 4.76 5.05 1.54 2.05 3.01 2.58 3.15 2011 2012 2013 2014 2015 2016 LTM 2Q17 25

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 Dividend Yield / Payout Ratio Percentage Percentage 1,800 Ps. Million 1,600 1,600 1 1,400 250 8.6 1,400 1,200 1,200 1,200 1,200 200 6.9 1,000 5.7 150 800 147 4.4 4.2 4.5 600 400 500 100 81 100 117 113 85 50 200 - - 2011 2012 2013 2014 2015 2016 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. 26 Dividend Yield was calculated with the stock price at the end of each year.

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

1,6 00 1,4 00 1,2 00 1,0 00 800 600 400 200 0 100 % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% MDP & Maximum Rates Investments 2016-2020 Total Committed Investment Ps.5,044mm pesos of Dec. 31, 2016 Visibility of capital expenditure requirements through 2020 1,470 1,410 Zacatecas, 2% Mazatlán, 3% Torreón, 3% 1,072 Durango, 3% Ciudad Juárez, 4% Culiacán, 4% Monterrey, 28% 29% 28% 21% 659 13% 433 9% Tampico, 7% 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.5,044mm pesos of Dec. 31, 2016 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 18,800 m 2* Terminal building, m 2 +44% Commercial spaces, m 2 +32% 1Q 2018 ** * New terminal total surface ** Expected 30

MDP & Maximum Rates New Terminals Reynosa Airport Investment Capacity Comfort Total Area Start of Operations Ps.302 mm Total PAX mm 0.3 1.0, +233% 2 levels 8,000 m 2* Terminal building, m 2 +188% Commercial spaces, m 2 +147% 4Q 2018 ** * New terminal total surface ** Expected 31

MDP & Maximum Rates Expansion & Remodeling Terminals San Luis Potosí Airport Investment Capacity Total Area Start of Operations Ps.351 mm Total PAX mm 0.4 1.2, +200% 4,111 m 2 13,000 m 2* Terminal building, m 2 +204% Commercial spaces, m 2 +45% 1Q 2019 ** * Total surface after remodeling and expansion ** Expected 32

MDP & Maximum Rates Expansion & Remodeling Terminals Chihuahua Airport Investment Capacity Total Area Start of Operations Ps.308 mm Total PAX mm 0.9 1.7, +89% 9,510 m 2 15,253 m 2* Terminal building, m 2 +60% Commercial spaces, m 2 +29% 4Q 2018 ** * Total 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% 99.4% MT Compliance 93.7% 95-96% 2015 (1) 2016 (1) (1) (2) 2017 13 Airports MT MT MT Maximum Minimum 217 (ACA & ZIH) 166 (MTY) 2015 2016 2017e 280 (ACA & ZIH) 207 (MTY) 278 (ACA & ZIH) 205 (MTY) Weighted average 177 222 221 Average rate increase 3 +4.8% Domestic Passenger Charges +4.0% International Passenger Charges +6.5% in SAEs 1 Weighted average using passenger traffic for each period (2017 has been weighted with traffic of 2016) and expressed in constant pesos of December 31, 2016 considering efficiency factor effect 2 Considering an expected PPI of December 31, 2017 of +6.5% 3 Expected 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 2016-2035 2.4 2.5 4.6% 4.9% 5.1% 5.0% 3.7% 0.9 2.1% 2.5% 0.6 0.3 0.5 Mexico Argentina Brazil Canada Chile United States Mexico Brazil United States Canada Russia Central America South America Source: World Bank. Latest information available of 2016 Source: Airbus. (Global Market Forecast 2016-2035) 36

Available Seats Fleet Outlook and Industry Airline Fleets: Orders and Expected Historical Airline Fleets and Available Seats Airplanes 133 130 124 125 117 2013 2014 2015 2016 2017E 70 72 69 56 56 51 50 45 44 75 19 19 21 21 26 0 3 8 10 10 13,321 14,944 15,335 16,723 16,635 6,222 6,594 7,917 8,722 9,645 7,230 8,160 9,296 14,370 12,282 2,812 2,972 3,472 3,600 4,500 400 700 700-150 Source: DGAC, Airlines. Latest information available. 37

Outlook and Industry Airline Fleets: Orders and Expected Airline Expansion Orders (2013 2022) 100 80 60 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. Chief Financial Officer Vicsaly Torres vtorres@oma.aero +52.81.8625.4300 Investor Relations Team Emmanuel Camacho ecamacho@oma.aero +52.81.8625.4308 Laury Franco Castillo lfranco@oma.aero +52.81.8625.4377 Investor Relations in USA Daniel Wilson Zemi Communications dbmwilson@zemi.com +1.212.689.9560