ACI Annual Assembly Conference & Exhibition

ACI Annual Assembly Conference & Exhibition

Benefits and efficiencies of managing a group of airports versus just one Revenue side: More Competiveness Promoting intra-company routes GAP gets the advantage of the double traffic unit effect as we have one departing passenger and one arriving. GAP also has better marketing programs, this in order to promote airlines at our different airports. At the end of the day, GAP has more negotiation power, with airlines, and with the government. Additionally, better conditions in our leasing agreements with our commercial tenants. Page 2

Benefits and efficiencies of managing a group of airports versus just one Cost side: Economies of scale, once the company centrally manage a group of airports we start saving in a lot of money and a lot of time; which at the end makes us more efficient. Cost efficiency Synergies Better conditions + Better prices Cost of Service per PAX (Mexican Pesos) 43 45 48 49 50 49 47 52 49 37 36 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E Page 3

Latest In Non Aeronautical Revenue The Company has developed several strategies to increase the non aeronautical revenues such as: We have focused on expanding and redesigning the layout of all of our airports Bring in well Know brands in all of our airports Renegotiation contracts based on new market conditions Development of business lines operated by the Company Page 4

Commercial strategy has led to an increase of 111% from 2006 to 2015 25.0% 20.0% 15.0% 10.0% 5.0% 12% Evolution of the commercial Revenue vs Passenger Traffic 5% 4% 6% 5% 19% 9% 15% 7% 10% 12% 22% 17% 20% 0.0% -5.0% 1% 0% 2008 2009 2010 2011 2012 2013 2014 2015 2016E -6% -10.0% -15.0% -13% Passenger annual growth rate Commercial revenues growth rate -20.0% Page 5

Strategical business lines operated by us $260 $240 $220 $200 $180 $160 $120 $100 $80 $60 $40 $20 $- $194 $221 Parking 2007: $135 million pesos Change 07 vs Parking 16E: 88% $230 VIP Lounges $244 $254 2012 2013 2014 2015 2016E $10 $24 VIP Lounges 2011: $7.6 million pesos Change 07 vs 16E: 1295% $38 $65 In millions of mexican pesos $106 2012 2013 2014 2015 2016E $160 $140 $120 $100 $80 $60 $40 $20 $- $120 $100 $80 $60 $40 $20 $- $76 $87 Advertising Advertising 2011: $54 million pesos Change 07 vs 16E: 163% $100 $122 Aeromarket $142 2012 2013 2014 2015 2016E 2011: $2 million pesos Change 07 vs 16E: 5100% $1 $16 Aeromarket (Convenience stores) (Convenience Store) $40 $81 Key drivers: Expanding Redefining Maximizing $104 2012 2013 2014 2015 2016E Page 6

Does this diversification help provide stable results? Airports Passenger Traffic 15 Guadalajara 9,790,835 Tijuana 4,870,506 Montego Bay 3,740,198 Los Cabos 3,652,921 Puerto Vallarta 3,593,496 Others 5,716,217 In 2014 Hurricane Odile hits los Cabos airport. We lost more than 300,000 passengers. However, during this year we reached the highest number of passengers transported in our network Our main airports Page 7

US Pre-Clearance: Effects on Airports Strengths Opens up the possibility to fly to airports without CBP facilities. There is a security advantage as unwanted passengers are not allowed to enter the US previous to the flight s departure. Weaknesses It does not generate additional traffic, as it diverts passengers from big HUBs. Decreases flexibility in the use of the airport s infrastructure as pre-cleared passengers need dedicated spaces. Increases airport costs, which at the end impact airport fees and ticket fares. A plus or a minus for an airport? Opportunities Creates marketing advantages as the destination is able to show its will to increase tourism. Could reduce domestic connection times for passengers transferring to other points in the US. Threats Possible reduction in commercial revenues as precleared passengers remain in isolated areas. Sovereignty issues as a result of the entrance of US CBP agents to a foreign country, which have their own regulations. Page 8

Practical Case: Los Cabos (SJD) Will the airport be able to generate additional US traffic with pre-clearance? US-Los Cabos Traffic Analysis 2% 14% Direct Flight 84% Connecting from CBPequiped airport Connecting from non CBP-equiped airport As of today, the airport offers direct services to 23 US destinations, including all of the major HUBs 84% of the total passengers flying from the US to Los Cabos do it on a direct flight, 14% connect trough a HUB and originate on a CBP-equipped airport, while only 2% come from airports with no CBP facilities. This means there is 7 times the potential to generate flights from international airports than airports that require pre-clearance. Page 9

US Pre-Clearance: Example of Infrastructure Issues Los Cabos International Airport Current Infrastructure T2 T1 T2: International Terminal T1: Domestic Terminal With additional investments, the airport could adapt T2 to make it exclusive for US-bound flights, leaving domestic flights and other international flights ( Canada, Latin America) at T1. However, only T2 has the customs and immigration facilities/services, which would force all the international passengers to arrive at T2. This mix of different terminal and passenger flows for the arrivals/departure could generate a lot of confusion for non-us international passengers, as well as a reduction in commercial revenues, employment, and airport comfort. Page 10

This document may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words anticipates, believes, estimates, expects, plans and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.