OMA Announces Third Quarter 2021 Operating and Financial Results

OMA Announces Third Quarter 2021

Operating and Financial Results

Mexico City, Mexico, October 26, 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 third quarter 2021 (3Q21).

Summary

• Passenger traffic increased 121% during 3Q21, as compared to 3Q20, reaching 5.1 million passengers, and decreased 16.9% as compared to 3Q19. The airports with the highest traffic recovery compared to 3Q19 were Ciudad Juárez, Mazatlán, Reynosa, Zacatecas, and San Luis Potosí.
• Adjusted EBITDA was Ps.1,473 million, which compares to Ps.432 million in 3Q20, and was 1.6% higher than in 3Q19.
• Adjusted EBITDA margin reached 75.2%, as compared to 52.3% in 3Q20 and 74.1% in 3Q19.
• Capital investments and major maintenance works included in the Master Development Plans (MDPs) plus strategic investments were Ps.524 million in the quarter.

(Thousand Passengers and Million Pesos)	3Q19	3Q20	3Q21	%Var	%Var	9M19	9M20	9M21	%Var	%Var
vs 3Q19	vs 3Q20	vs 9M19	vs 9M20
Passenger Traffic	6,145	2,311	5,105	(16.9)	120.9	17,217	7,758	12,666	(26.4)	63.3
Aeronautical Revenues	1,491	594	1,504	0.8	153.0	4,310	2,023	3,725	(13.6)	84.1
Non-Aeronautical Revenues	465	230	456	(2.0)	98.1	1,347	864	1,175	(12.8)	35.9
Aeronautical + Non-Aeronautical Revenues	1,956	825	1,960	0.2	137.7	5,657	2,887	4,900	(13.4)	69.7
Construction Revenues	199	389	417	109.7	7.3	607	858	1,140	87.9	33.0
Total Revenues	2,155	1,213	2,377	10.3	95.9	6,264	3,745	6,040	(3.6)	61.3
Adjusted EBITDA	1,450	432	1,473	1.6	241.3	4,160	1,696	3,589	(13.7)	111.6
Adjusted EBITDA Margin (%)	74.1%	52.3%	75.2%			73.5%	58.8%	73.3%
Income from Operations	1,286	255	1,187	(7.8)	365.0	3,691	1,189	2,835	(23.2)	138.4
Operating Margin (%)	59.7%	21.0%	49.9%			58.9%	31.8%	46.9%
Consolidated Net Income	858	69	812	(5.4)	1,070.0	2,466	859	1,848	(25.1)	115.2
Net Income of Controlling Interest	856	70	809	(5.5)	1,055.4	2,462	855	1,844	(25.1)	115.6
EPS (Ps.)	2.18	0.18	2.08	(4.4)	1,061.2	6.26	2.19	4.74	(24.4)	116.1
EPADS (US$)	0.89	0.06	0.81	(8.2)	1,166.6	2.55	0.78	1.85	(27.4)	135.8
MDP and Strategic Investments	357	438	524	46.8	19.6	867	1,034	1,366	57.6	32.1

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 3Q21 earnings conference call on October 27, 2021 at 11:00 a.m. Eastern time, 10:00 a.m. Mexico City time.

Call [phone]toll-free from the U.S. or [phone] from outside the U.S. The conference ID is 13723634. The conference call will also be available by webcast at http://ir.oma.aero/events.cfm.

3Q21 Operating Results

Operations, Passengers, and Cargo

The number of seats offered increased 86.0% compared to 3Q20 and decreased 14.9%, compared to the third quarter of 2019, mainly due to the number of routes suspended by the airlines.

Total passenger traffic reached 5.1 million passengers, representing an increase of 121% as compared to 3Q20 and decreased 16.9% versus 3Q19. During the quarter, of total traffic, 87.2% was domestic and 12.8% was international.

Domestic passenger traffic increased 106%, compared to 3Q20, while international traffic increased 329%. Compared to 3Q19, domestic passenger traffic and international passenger traffic decreased 18.9% and 0.4%, respectively.

The airports with the largest contribution to passenger traffic recovery, in volume terms as compared to 3Q19, were:

• Ciudad Juárez (+7.7%), on its Guadalajara, Mexico City and Cancún routes.
• Mazatlán (+3.2%), on its Tijuana and Chihuahua routes.
• Reynosa (-1.9%), on its Tapachula and Villahermosa routes.
• Zacatecas (-9.0%), on its Tijuana, Chicago and Dallas routes.
• San Luis Potosí (-9.8%), on its Cancún and Houston routes.

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	3Q19	3Q20	3Q21	%Var	%Var	9M19	9M20	9M21	%Var	%Var
	vs 3Q19	vs 3Q20	vs 9M19	vs 9M20
Available Seats	8,127,223	3,720,633	6,919,783	(14.9)	86.0	23,139,065	12,237,515	17,499,706	(24.4)	43.0
Passenger Traffic:
Domestic	5,488,464	2,158,513	4,450,345	(18.9)	106.2	15,165,291	6,870,461	11,037,479	(27.2)	60.7
International	656,510	152,503	654,176	(0.4)	329.0	2,051,267	887,320	1,628,902	(20.6)	83.6
Total Passenger Traffic	6,144,974	2,311,016	5,104,521	(16.9)	120.9	17,216,558	7,757,781	12,666,381	(26.4)	63.3
Commercial Aviation (Regular and Charter)	6,106,776	2,281,775	5,067,628	(17.0)	122.1	17,089,199	7,668,677	12,550,604	(26.6)	63.7
General Aviation	38,198	29,241	36,893	(3.4)	26.2	127,359	89,104	115,777	(9.1)	29.9
Cargo Units	238,977	232,544	311,465	30.3	33.9	727,528	622,880	869,673	19.5	39.6
Workload Units	6,383,951	2,543,560	5,415,986	(15.2)	112.9	17,944,086	8,380,661	13,536,054	(24.6)	61.5
Flight Operations (Takeoffs and Landings):
Domestic	73,639	43,122	62,136	(15.6)	44.1	221,110	132,175	171,889	(22.3)	30.0
International	11,046	4,942	10,288	(6.9)	108.2	34,191	19,482	30,241	(11.6)	55.2
Total Flight Operations	84,685	48,064	72,424	(14.5)	50.7	255,301	151,657	202,130	(20.8)	33.3

Commercial Operations

The commercial space occupancy rate in the passenger terminals was 85.1% as of September 30, 2021. During the quarter, a total of 596 m2 in commercial spaces were occupied.

Freight Logistics Services

• OMA Carga's revenues increased by 51.8%, compared to 3Q20 due to higher handling, storage and custody activity related to air import cargo, as well as handling of high-end cargo during the quarter. Total tonnage handled was 10,887 metric tons, 72.9% higher than 3Q20.

Hotel Services

• The NH Collection Terminal 2 Hotel had a 69.5% occupancy rate, as compared to 35.8% in 3Q20. The average room rate was Ps.2,200 per night during the quarter.
• Hilton Garden Inn had a 51.0% occupancy rate, compared to 18.6% in 3Q20. The average room rate was Ps.1,903 per night during the quarter.

Industrial Services

• OMA VYNMSA Aero Industrial Park: Revenues reached Ps.15 million, an increase of 24.4% versus 3Q20. The increase is explained by additional revenues generated from three warehouses rented during 2020, which started generating revenues since 4Q20. During the quarter, a lease was signed for a 4,849 m2 warehouse that will start to generate revenues in 4Q21.

Consolidated Financial Results

Revenues

Aeronautical revenues increased 153% mainly due to an increase in passenger traffic, compared to 3Q20.

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(Ps. Thousands)	3Q20	3Q21	% Var	9M20	9M21	% Var
Domestic Passenger Charges	398,798	969,959	143.2	1,224,320	2,386,982	95.0
International Passenger Charges	77,038	351,514	356.3	400,010	845,528	111.4
Other Aeronautical Services, Regulated Leases and Access Rights	118,529	182,215	53.7	399,042	492,727	23.5

Aeronautical Revenues	594,366	1,503,689	153.0	2,023,372	3,725,236	84.1
Aeronautical Revenues/Passenger (Ps.)	257.2	294.6	14.5	260.8	294.1	12.8

Non-aeronautical revenues increased 98.1%.

Commercial revenues increased 125%. The line items with the largest variations were:

• Parking, +140% as a result of an increase in passenger traffic.
• Restaurants, Car Rentals and Retail, +267%, +112% and +190%, respectively, granted to our tenants during 3Q20, as well as an increase in revenues from

as a result of the supports revenue shares.

(Ps. Thousands)	3Q20	3Q21	% Var	9M20	9M21	% Var
Commercial Activities:
Parking	25,895	62,251	140.4	93,877	151,270	61.1
Advertising	8,657	19,916	130.1	48,685	49,116	0.9
Retail	8,426	24,442	190.1	47,240	57,451	21.6
Duty Free	1,236	2,969	140.2	7,540	7,251	(3.8)
Restaurants	10,106	37,097	267.1	62,343	86,253	38.4
Car Rentals	18,464	39,156	112.1	77,437	98,606	27.3
Passenger Services	568	931	63.9	2,907	2,496	(14.1)
Time Shares & Hotel Promotion	2,809	3,266	16.3	10,401	9,781	(6.0)
Communications and Networks	5,298	4,499	(15.1)	13,571	13,606	0.3
VIP Lounges	6,925	13,319	92.3	26,529	33,869	27.7
Financial Services	1,796	2,225	23.9	5,936	6,103	2.8
Other Services	7,651	10,383	35.7	26,144	29,229	11.8
Total Revenues from Commercial Activities	97,832	220,454	125.3	422,611	545,031	29.0

Diversification revenues increased 70.9%, mainly due to higher revenues from hotel services and OMA Carga.

(Ps. Thousands)	3Q20	3Q21	% Var	9M20	9M21	% Var
Diversification Activities:
Hotel Services	25,483	60,516	137.5	110,093	149,081	35.4
OMA Carga (Freight Logistics Service)	43,635	66,219	51.8	130,635	194,174	48.6
Real Estate Services	4,100	4,663	13.7	13,356	13,725	2.8
Industrial Services	12,440	15,472	24.4	35,592	46,152	29.7
Other Services	1,721	2,431	41.2	6,050	5,786	(4.4)

Total Revenues from Diversification Activities	87,379	149,301	70.9	295,726	408,918	38.3
Complementary Activities:
Checked Baggage Screening	18,048	43,132	139.0	60,699	106,296	75.1
Other Leases	21,337	36,432	70.7	65,151	93,830	44.0
Access Rights	2,884	4,328	50.1	11,909	13,275	11.5
Other Services	2,764	2,368	(14.3)	7,891	7,187	(8.9)

Total Revenues from Complementary Activities	45,033	86,260	91.5	145,650	220,588	51.5
Non-Aeronautical Revenues	230,244	456,014	98.1	863,986	1,174,537	35.9
Non-Aeronautical Revenues/Passenger (Ps.)	99.6	89.3	(10.3)	111.4	92.7	(16.7)

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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)	3Q20	3Q21	% Var	9M20	9M21	% Var
Aeronautical Revenues	594,366	1,503,689	153.0	2,023,372	3,725,236	84.1
Non-Aeronautical Revenues	230,244	456,014	98.1	863,986	1,174,537	35.9
Aeronautical + Non-Aeronautical Revenues	824,610	1,959,703	137.7	2,887,358	4,899,773	69.7
Construction Revenues	388,850	417,164	7.3	857,538	1,140,471	33.0
Total Revenues	1,213,460	2,376,867	95.9	3,744,896	6,040,244	61.3
Aeronautical Revenues + Non-Aeronautical Revenues / Passenger (Ps.)	356.8	383.9	7.6	372.2	386.8	3.9

Costs and Operating Expenses

The sum of cost of airport services and general and administrative expenses (G&A) increased 4.9%, mainly due to higher costs for contracted services costs basic services, as a result of passenger traffic growth. Additionally, payroll recorded a one-timeexpense of Ps.8 million related to the organizational restructuring as a result of changes in labor regulation in Mexico.

(Ps. Thousands)	3Q20	3Q21	% Var	9M20	9M21	% Var
Payroll	127,718	147,544	15.5	387,402	390,762	0.9
Contracted Services (Security, Cleaning and Professional Services)	47,057	58,989	25.4	169,716	188,255	10.9
Minor Maintenance	31,662	32,133	1.5	98,894	96,167	(2.8)
Basic Services (Electricity, Water, Telephone)	17,769	24,843	39.8	49,306	57,961	17.6
Materials and Supplies	7,807	9,176	17.5	24,498	24,173	(1.3)
Insurance and Bonding	8,687	8,561	(1.5)	23,681	27,511	16.2
Other costs and expenses	65,958	40,321	(38.9)	145,947	114,092	(21.8)
Cost of Airport Services + G&A	306,658	321,566	4.9	899,443	898,921	(0.1)
Cost of Hotel Services	23,644	34,615	46.4	79,255	86,185	8.7
Cost of Industrial Park Services	1,464	1,825	24.6	5,744	5,608	(2.4)
Subtotal (Cost of Services + G&A)	331,766	358,006	7.9	984,442	990,714	0.6
Subtotal (Cost of Services + G&A) / Passenger (Ps.)	143.6	70.1	(51.1)	126.9	78.2	(38.4)

The major maintenance provision was Ps.165 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 September 30, 2021 was Ps.1,659 million.

The airport concession tax was Ps.91 million and the technical assistance fee was Ps.38 million.

As a result of the foregoing, total operating costs and expenses increased 24.2%.

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