INVESTOR PRESENTATION THIRD QUARTER 2017 RESULTS

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Transcription:

INVESTOR PRESENTATION THIRD 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 3Q17 2Q17 Commercial Strategy Diversification Strategy NAR 2Q17 3Q17 Historical NAR Growth 3Q17 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-LTM Sep17 PAX 8.8% Revenues 15.2% Adjusted EBITDA 19.9% 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% 19.6 5,738 26% 74% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM Sep17 % 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 12.6% SETA 1 BB shares 85.5% Public Float 2 - B Shares 1.9% CONOISA 1 B shares Market Cap 3. Ps. Bn. $39.7 / USD Bn. $2.2 Note: Share holding information as of September 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 BM V Price Ps.100.89 as of September 30, 2017. Exchange rate used: 17.8545 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 3Q17

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 2 5 n e w d i r e c t r o u t e s i n 9 M 1 7 Domestic Routes Milwaukee Detroit 4 Tijuana Ciudad Juárez Chicago 16 4 Hermosillo Obregón Chihuahua 8 Culiacán Monterrey International Routes 1 Bajío Guadalajara Puerto Vallarta Zihuatanejo Querétaro Ciudad de México Cancún 2 Acapulco 5 1 Otros +10.9% P A X i n 2 0 1 6 1 2 c a n c e l l e d r o u t e s i n 2 0 1 6 6 5 4 2 2 1 5 3 c a n c e l l e d r o u t e s i n 9 M 1 7 5

Aeronautical Business Passenger Traffic 3Q17 Passenger Traffic 9M17 Passenger Traffic Total Pax: 5.2 million (+1.3%) Total Pax: 14.7 million (+5.8%) 89% Domestic: 4.6 million (+1.3%) 87% Domestic: 12.8 million (+6.2%) 11% Domestic: 0.6 million (+1.3%) 13% Domestic: 1.8 million (+3.5%) At Monterrey Airport Tourist 9% Border Cities 9% CJS +8% CUU Aeromexico regional hub VivaAerobus main base and headquarters Volaris secondary base Interjet secondary base Regional 30% Metropolitan 52% CUL +11% +11% DGO MZT +7% -6% TRC -2% ZCL +5% REX MTY -9% +4% SLP TAM -1% +11% Note: Percentages in graphs represent Passenger share by type of airport. ZIH +9% ACA (%) YoY 9M17 Passenger Growth -4% 13

Aeronautical Business Airline Participation 89% Domestic Passengers 11% International Passengers Magnicharter 4% (+3.3%) Interjet 17% (+0.1%) Other 5% (-4%) VivaAerobus 29% (+13.7%) Volaris 10% (-10.7%) Copa Airlines 1% (-25.6%) Other 3% (-6.9%) Alaska 4% (+7%) Interjet 6% (-3.9%) United 24% (+3.8%) Delta 12% (+16.5%) Volaris 19% (-6.6%) American 23% (+6.6%) Aeroméxico 26% (-3.3%) Aeroméxico 18% (-0.5%) Note: Percentages in graphs represent 1) Passenger share by category and 2) % change 3Q17 v s 3Q16. 14

Aeronautical Business Aeronautical Revenues 3Q17 Domestic Passenger Charges International Passenger Charges Airport Services Aeronautical Revenues Ps.807 +14.1% Ps.206 +2.7% mm 18% of Aeronautical Revenue mm Ps.151 +1.9% mm Ps.1,163mm +10.2% 76% of Total Revenue* Ps. 223.7 / PAX 69% of Aeronautical Revenue 13% of Aeronautical Revenue * Total Revenues excluding Construction Revenues 15

Non - Aeronautical Business 1 2 3 4 Commercial Strategy Diversification Strategy NAR 3Q17 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 17 Commercial Initiatives Implemented in 3Q17 Airport Type Quantity Acapulco, Durango, Tampico, Zacatecas and Zihuatanejo Comunications 5 Monterrey Restaurants 5 Culiacán and Reynosa Car Rental 3 Monterrey Retail 2 Acapulco Publicity 1 Chihuahua VIP Lounge 1 17

Non-Aeronautical Business Diversification Strategy NH Collection Hotel at Mexico City Airport Hilton Garden Inn Hotel in MTY 15.4% 17.4% of NAR 287 Rooms Avg. Room Rate:Ps.2,226 Ps.2,175 per night (+5.1% yoy) Occupancy Rate: 83% 88% EBITDA Margin: 38.8% 38.3% 6.1% of NAR 134 Rooms Avg. Room Rate: Ps.1,915 Ps.2,023 per night (+3. Occupancy Rate: 77% 73% EBITDA Margin: 38.2% 38.4% OMA Carga Real Estate Industrial Park In MTY 11.0% of NAR +13.6% revenues in 3Q17 1.0% of NAR +4.0% 1,650m 2 New ground cargo facility revenues in 3Q17 started operations on February 16, 2017 0.9% of NAR Ps.3,177 mm 1 st and 2 nd warehouses leased 2 nd warehouse expansion to 8,200 m 2 additional revenue 1Q18 3 rd warehouse leased; revenue starts 4Q17 4 th warehouse in commercialization 5 th warehouse under construction 18

Non-Aeronautical Business NAR 3Q17 Commercial Activities Diversification Activities Complementary Activities Non- Aeronautical Revenues Ps.128 mm +8.7% Ps.368mm +8.8% 35% of NAR 24% of Total Rev.* Ps. 70.8 / PAX Ps.179 mm +10.3% Ps.61 mm +4.5% 49% of NAR 17% 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 27 7% 4% NAR - Commercial/PAX NAR - Diversification/PAX NAR Complementary/PAX NAR PAX CAGR 2011 - LTM Sep17 PAX +8.8% NAR +15.9% NAR/PAX +6.5% Base = 2005 24 26 32 8% 12% 4% 9% 3% 8% 42 8% 25% 89% 89% 84% 83% 67% 50 7% 55 18% 29% 28% 60 21% 28% 64% 54% 51% 61 21% 28% 51% 66 17% 32% 51% 71 16% 35% 49% 48% +351% 73 16% 36% +66% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 LTM Sep17 20

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

Financial Results 3Q17 Highlights Revenues* Total Operating Cost and Expenses Adjusted EBITDA** Consolidated Net Income Ps. 1,015 +45.9% mm Ps. 580 +19.1% mm Ps. 195.2 / PAX (+44%) Ps. 111.5 / PAX (+17.6%) Ps. 1,532 +9.9% mm Ps. 1,023 +9.8% mm Ps. 294.5 / PAX (+8.5%) Ps. 196.6 / PAX (+8.4%) Aeronautical +10.2% Non-Aero. +8.8% 3Q17 Margin 66.8% * 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 - LTM Sep17 10.1% 5.8% 2011 2012 2013 2014 2015 2016 LTM Sep17 0.2% Distribution of Operating Costs and Expenses* 11% 12% 10% 5% 23% 39% 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 September 30, 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 4,629 2,153 2,476 0.6 0.9 1.0 0.8 0.5 0.7 Total Debt Cash Net Debt 2012 2013 2014 2015 2016 LTM Sep17 Debt Profile * Capital Structure Improvement * Total Debt Shareholders Equity Short Term 1% USD 3% 25% 33% 44% 44% 41% 41% 75% 67% 56% 56% 59% 59% Long Term 99% MXN 97% 2012 2013 2014 2015 2016 LTM Sep17 *Information as of September 30, 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 - LTM Sep17 ROA +15.2% ROE +20.8% EPS +22.8% 6.6 10.1 8.2 12.8 10.9 18.8 8.3 16.8 9.9 20.8 13.9 28.0 15.5 31.5 2011 2012 2013 2014 2015 2016 LTM Sep17 Earnings per Share Pesos 4.8 5.3 1.5 2.1 3.0 2.6 3.1 2011 2012 2013 2014 2015 2016 LTM Sep17 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

1,6 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 14,100 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% 99.40% MT Compliance 93.70% 94% - 95% 2015 2016 2017e 2015 2016 2017 (2) 13 Airports MT MT MT Maximum Minimum 217 (ACA & ZIH) 143 (SLP) 280 (ACA & ZIH) 180 (SLP) 296 (ACA & ZIH) 191 (SLP) Weighted average (1) 177 222 235 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 2016-2036 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. Chief Financial Officer Vicsaly Torres vtorres@oma.aero +52.81.8625.4300 Investor Relations Team Emmanuel Camacho ecamacho@oma.aero +52.81.8625.4308 Investor Relations in USA Daniel Wilson Zemi Communications dbmwilson@zemi.com +1.212.689.9560