Grupo Aeroportuario del Centro Norte B de C : OMA Announces Second Quarter 2021 Operating and Financial Results

OMA Announces Second Quarter 2021

Operating and Financial Results

Mexico City, Mexico, July 27, 2021- Mexican airport operator Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., known as OMA (NASDAQ: OMAB; BMV: OMA), today reported its unaudited, consolidated financial and operating results for the second quarter 2021 (2Q21).

Summary

• Passenger traffic increased 679% as compared to 2Q20, reaching 4.5 million passengers, and decreased 23.9% as compared to 2Q19. The airports with the highest traffic recovery compared to 2Q19 were Mazatlán, Durango, Reynosa, Ciudad Juárez and Culiacán.
• Adjusted EBITDA was Ps.1,308 million, which compares to Ps.25 million in 2Q20, and was 9.2% lower than in 2Q19.
• Adjusted EBITDA margin reached 74.7%, as compared to 7.3% in 2Q20 and 73.9% in 2Q19.
• Capital investments and major maintenance works included in the Master Development Plans (MDPs) plus strategic investments were Ps.482 million for the quarter.

(Thousand Passengers and Million Pesos)	2Q19	2Q20	2Q21	%Var	%Var	6M19	6M20	6M21	%Var	%Var
vs 2Q19	vs 2Q20	vs 6M19	vs 6M20
Passenger Traffic	5,958	583	4,537	(23.9)	678.8	11,072	5,447	7,562	(31.7)	38.8
Aeronautical Revenues	1,496	154	1,350	(9.8)	778.0	2,819	1,429	2,222	(21.2)	55.5
Non-Aeronautical Revenues	455	193	401	(12.0)	107.3	881	634	719	(18.5)	13.4
Aeronautical + Non-Aeronautical Revenues	1,951	347	1,750	(10.3)	404.3	3,701	2,063	2,940	(20.6)	42.5
Construction Revenues	216	288	430	99.6	49.5	408	469	723	77.3	54.3
Total Revenues	2,167	635	2,181	0.6	243.5	4,109	2,531	3,663	(10.8)	44.7
Adjusted EBITDA	1,441	25	1,308	(9.2)	5,065.6	2,711	1,265	2,116	(21.9)	67.3
Adjusted EBITDA Margin (%)	73.9%	7.3%	74.7%			73.3%	61.3%	72.0%
Income from Operations	1,276	(150)	1,037	(18.8)	n.a.	2,404	934	1,648	(31.4)	76.5
Operating Margin (%)	58.9%	-23.6%	47.5%			58.5%	36.9%	45.0%
Consolidated Net Income	848	(181)	620	(26.9)	n.a.	1,609	789	1,036	(35.6)	31.3
Net Income of Controlling Interest	849	(180)	620	(27.0)	n.a.	1,605	785	1,035	(35.5)	31.8
EPS (Ps.)	2.16	(0.46)	1.59	(26.3)	n.a.	4.08	2.01	2.65	(35.0)	31.9
EPADS (US$)	0.90	(0.16)	0.64	(28.8)	n.a.	1.70	0.70	1.07	(37.1)	54.0
MDP and Strategic Investments	269	376	482	79.1	28.1	509	596	842	65.3	41.2

Chief Financial Officer

Ruffo Pérez Pliego del Castillo [phone] [e-mail]

Investor Relations:

Luis Emmanuel Camacho Thierry [phone] [e-mail]

www.oma.aero

OMA will hold its 2Q21 earnings conference call on July 28, 2021 at 9:30 a.m. Eastern time, 8:30 a.m. Mexico City time.

Call [phone]toll-free from the U.S. or [phone] from outside the U.S. The conference ID is 13721149. The conference call will also be available by webcast at http://ir.oma.aero/events.cfm.

2Q21 Operating Results

Operations, Passengers, and Cargo

The number of seats offered increased 410% as compared to 2Q20 and decreased 23.6% as compared to the second quarter of 2019, mainly due to the number of routes suspended by the airlines.

Total passenger traffic reached 4.5 million passengers, representing an increase of 679% as compared to 2Q20 and decreased 23.9% versus 2Q19. During the quarter, of total traffic, 85.9% was domestic and 14.1% was international.

Domestic passenger traffic increased 610% as compared to 2Q20, while international traffic increased 17.8x. As compared to 2Q19, domestic passenger traffic and international passenger traffic decreased 26.6% and 1.5%, respectively.

The airports with the largest contribution to passenger traffic recovery, in volume terms as compared to 2Q19, were:

• Mazatlán (+1.9%), on its Tijuana and Chihuahua routes.
• Durango (-6.0%), on its Dallas and Tijuana routes.
• Reynosa (-14.2%), on its Tapachula and Villahermosa routes.
• Ciudad Juárez (-16.6%), on its Cancún, Tijuana and Puerto Vallarta routes.
• Culiacán (-18.0%), on its Phoenix and Tijuana routes.

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	2Q19	2Q20	2Q21	%Var	%Var	6M19	6M20	6M21	%Var	%Var
	vs 2Q19	vs 2Q20	vs 6M19	vs 6M20
Available Seats	7,837,398	1,175,323	5,991,005	(23.6)	409.7	15,011,842	8,516,882	10,579,923	(29.5)	24.2
Passenger Traffic:
Domestic	5,307,291	548,497	3,895,884	(26.6)	610.3	9,676,827	4,711,948	6,587,134	(31.9)	39.8
International	650,792	34,055	640,987	(1.5)	1,782.2	1,394,757	734,817	974,726	(30.1)	32.6
Total Passenger Traffic	5,958,083	582,552	4,536,871	(23.9)	678.8	11,071,584	5,446,765	7,561,860	(31.7)	38.8
Commercial Aviation (Regular and Charter)	5,914,843	563,312	4,498,557	(23.9)	698.6	10,982,423	5,386,902	7,482,976	(31.9)	38.9
General Aviation	43,240	19,240	38,314	(11.4)	99.1	89,161	59,863	78,884	(11.5)	31.8
Cargo Units	248,955	171,953	287,699	15.6	67.3	488,551	390,336	558,208	14.3	43.0
Workload Units	6,207,038	754,505	4,824,570	(22.3)	539.4	11,560,135	5,837,101	8,120,068	(29.8)	39.1
Flight Operations (Takeoffs and Landings):
Domestic	75,796	23,179	58,467	(22.9)	152.2	147,471	89,053	109,753	(25.6)	23.2
International	11,134	2,813	10,849	(2.6)	285.7	23,145	14,540	19,953	(13.8)	37.2
Total Flight Operations	86,930	25,992	69,316	(20.3)	166.7	170,616	103,593	129,706	(24.0)	25.2

Commercial Operations

The commercial space occupancy rate in the passenger terminals was 84.9% as of June 30, 2021. During the quarter, a total of 471 m2 in commercial spaces were vacated.

Freight Logistics Services

OMA Carga's revenues increased by 69.3%, as compared to 2Q20 due to higher handling, storage and custody activity related to air import cargo during the quarter. Total tonnage handled was of 9,667 metric tons, 102.2% higher than 2Q20.

Hotel Services

The NH Collection Terminal 2 Hotel had a 55.8% occupancy rate. The average room rate was Ps.2,053 per night, during the quarter.

Hilton Garden Inn had a 45.8% occupancy rate. The average room rate was Ps.1,886 per night during the quarter.

Industrial Services

OMA VYNMSA Aero Industrial Park: Revenues reached Ps.15 million, representing an increase of 25.6% versus 2Q20. The increase is due to additional revenues generated from three warehouses rented during 2020. which started generating revenues since 4Q20.

Consolidated Financial Results

Revenues

Aeronautical revenues increased 778% mainly due to an increase in passenger traffic as compared to 2Q20.

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(Ps. Thousands)	2Q20	2Q21	% Var	6M20	6M21	% Var
Domestic Passenger Charges	49,361	869,841	1,662.2	823,533	1,417,022	72.1
International Passenger Charges	17,850	311,079	1,642.7	324,960	494,014	52.0
Other Aeronautical Services, Regulated Leases and Access Rights	86,501	168,674	95.0	280,513	310,511	10.7

Aeronautical Revenues	153,712	1,349,594	778.0	1,429,006	2,221,547	55.5
Aeronautical Revenues/Passenger (Ps.)	263.9	297.5	12.7	262.4	293.8	12.0

Non-aeronautical revenues increased 107%.

Commercial revenues increased 87.8%. The line items with the largest variations were:

Parking, +580% as a result of an increase in passenger traffic.

Restaurants, Car Rentals and Retail, +104%, +63.2% and +51.2%, respectively, as a result of lower levels of discounts granted, as well as an increase in revenues from revenue shares.

(Ps. Thousands)	2Q20	2Q21	% Var	6M20	6M21	% Var
Commercial Activities:
Parking	8,083	54,970	580.0	67,982	89,019	30.9
Advertising	20,067	16,454	(18.0)	40,028	29,200	(27.1)
Retail	11,951	18,069	51.2	38,814	33,010	(15.0)
Duty Free	1,118	1,960	75.3	6,304	4,282	(32.1)
Restaurants	13,811	28,224	104.4	52,237	49,156	(5.9)
Car Rentals	19,754	32,235	63.2	58,973	59,450	0.8
Passenger Services	1,249	802	(35.8)	2,339	1,565	(33.1)
Time Shares & Hotel Promotion	3,014	3,601	19.5	7,592	6,515	(14.2)
Communications and Networks	4,145	4,374	5.5	8,273	9,107	10.1
VIP Lounges	5,338	11,277	111.2	19,603	20,550	4.8
Financial Services	1,773	1,922	8.4	4,140	3,878	(6.3)
Other Services	7,281	9,399	29.1	18,493	18,846	1.9
Total Revenues from Commercial Activities	97,583	183,286	87.8	324,778	324,577	(0.1)

Diversification revenues increased 114%, mainly due to higher revenues from hotel services and OMA Carga.

(Ps. Thousands)	2Q20	2Q21	% Var	6M20	6M21	% Var
Diversification Activities:
Hotel Services	7,519	52,957	604.3	84,611	88,566	4.7
OMA Carga (Freight Logistics Service)	37,956	64,247	69.3	87,000	127,955	47.1
Real Estate Services	4,270	4,728	10.7	9,256	9,062	(2.1)
Industrial Services	12,168	15,281	25.6	23,152	30,680	32.5
Other Services	2,819	1,509	(46.5)	4,329	3,355	(22.5)

Total Revenues from Diversification Activities	64,732	138,721	114.3	208,347	259,617	24.6
Complementary Activities:
Checked Baggage Screening	4,305	37,923	781.0	42,652	63,164	48.1
Other Leases	21,908	33,424	52.6	43,814	57,399	31.0
Access Rights	2,376	4,827	103.2	9,024	8,947	(0.9)
Other Services	2,482	2,615	5.4	5,128	4,819	(6.0)

Total Revenues from Complementary Activities	31,070	78,790	153.6	100,617	134,329	33.5
Non-Aeronautical Revenues	193,386	400,797	107.3	633,742	718,523	13.4
Non-Aeronautical Revenues/Passenger (Ps.)	332.0	88.3	(73.4)	116.4	95.0	(18.3)

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Construction revenues represent the value of improvements to concessioned assets. They are equal to construction costs and generate neither a gain nor a loss. Construction revenues and costs are determined based on the advance in the execution of projects in accordance with the airports' Master Development Programs (MDP), and variations depend on the rate of project execution.

(Ps. Thousands)	2Q20	2Q21	% Var	6M20	6M21	% Var
Aeronautical Revenues	153,712	1,349,594	778.0	1,429,006	2,221,547	55.5
Non-Aeronautical Revenues	193,386	400,797	107.3	633,742	718,523	13.4
Aeronautical + Non-Aeronautical Revenues	347,098	1,750,391	404.3	2,062,748	2,940,070	42.5
Construction Revenues	287,841	430,400	49.5	468,688	723,307	54.3
Total Revenues	634,939	2,180,791	243.5	2,531,436	3,663,377	44.7
Aeronautical Revenues + Non-Aeronautical Revenues / Passenger (Ps.)	595.8	385.8	(35.2)	378.7	388.8	2.7

Costs and Operating Expenses

The sum of cost of airport services and general and administrative expenses (G&A) increased 6.9%, mainly due to higher contracted services costs and an increase to minor maintenance cost, as a result of passenger traffic growth during the quarter.

(Ps. Thousands)	2Q20	2Q21	% Var	6M20	6M21	% Var
Payroll	128,667	124,855	(3.0)	259,683	243,218	(6.3)
Contracted Services (Security, Cleaning and Professional Services)	54,177	76,810	41.8	122,659	129,266	5.4
Minor Maintenance	23,569	32,605	38.3	67,232	64,034	(4.8)
Basic Services (Electricity, Water, Telephone)	13,405	19,187	43.1	31,537	33,118	5.0
Materials and Supplies	9,535	7,814	(18.1)	16,691	14,997	(10.1)
Insurance and Bonding	8,618	8,225	(4.6)	14,994	18,951	26.4
Other costs and expenses	39,247	26,923	(31.4)	79,989	73,771	(7.8)
Cost of Airport Services + G&A	277,218	296,418	6.9	592,785	577,355	(2.6)
Cost of Hotel Services	13,140	29,694	126.0	55,611	51,570	(7.3)
Cost of Industrial Park Services	2,944	2,040	(30.7)	4,279	3,783	(11.6)
Subtotal (Cost of Services + G&A)	293,301	328,152	11.9	652,676	632,708	(3.1)
Subtotal (Cost of Services + G&A) / Passenger (Ps.)	503.5	72.3	(85.6)	119.8	83.7	(30.2)

The major maintenance provision was Ps.151 million, and reflects a higher level of future executions of major maintenance works, pursuant to the Master Development Program for the period 2021-2025. The outstanding balance of the maintenance provision as of June 30, 2021 was Ps.1,553 million.

The airport concession tax was Ps.81 million and the technical assistance fee was Ps.34 million.

As a result of the foregoing, total operating costs and expenses increased 45.8%. Excluding construction cost, total operating costs and expenses increased 43.6%

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