ASUR 2Q19 Passenger Traffic Increased 4.7% YoY

in Mexico, 6.1% in Puerto Rico and 14.9% in Colombia

Mexico City, July 22, 2019 - Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE: ASR; BMV: ASUR) (ASUR), a leading international airport group with operations in Mexico, the U.S., and Colombia, today announced results for the three-and six-monthperiods ended June 30, 2019.

2Q19 Highlights1

  • Passenger traffic in Mexico rose 4.7% YoY, reflecting increases of 9.3% and 0.7% in domestic and international traffic, respectively, principally driven by Cancun Airport.
  • Traffic in Puerto Rico (Aerostar) increased 6.1% YoY, supported by increases of 5.5% in domestic traffic and 11.4% in international traffic.
  • Traffic in Colombia (Airplan) rose 14.9% YoY, driven by growth of 14.3% in domestic traffic and 18.5% in international traffic.
  • Consolidated commercial revenues per passenger reached Ps.99.7.
  • Consolidated EBITDA increased 16.3% YoY, reaching Ps.2,745.0 million. Excluding a one-time insurance claim recovery of Ps.162.6 million in Puerto Rico during 2Q19 in connection with Hurricane Maria in 2017, consolidated EBITDA would have increased 9.4% YoY to Ps.2,582.4 million.
  • Cash position at year-end was Ps.4,851.3 million. Net Debt to LTM EBITDA stood at 0.9x.
  • Paid Ps.10.0 peso per share cash dividend totaling Ps.3.0 billion

2Q19 Earnings Call

Date & Time: Tuesday, July 23, 2019 at 10:00 AM US ET; 9:00 AM CT

Dial-in:1-866-548-4713(Toll-Free) and 1-323-794-2093

(International & Mexico). Access Code: 9908128.

Replay: Tuesday, July 23 at 1:00 PM US ET, ending at 11:59 PM US ET on Tuesday, July 30, 2019. Dial-in number: 1-844-512-2921Dial-in number: 1-844-512- 2921 (US & Canada) 1-412-317-6671 (International & Mexico); Access Code 9908128

1 Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS), including application of IFRS 9 and 15 that came into force in 2018, and represent comparisons between the three-andsix-month periods ended June 30, 2019, and the equivalent three- and six-month periods ended June 30, 2018. On May 26, 2017, ASUR increased its share ownership in Aerostar to 60% from its prior 50% ownership. Accordingly, starting June 1, 2017, ASUR began to fully consolidate Aerostar results on a line by line basis, while until then, results were accounted for by the equity method. Furthermore, starting October 19, 2017, ASUR began to consolidate results of Airplan in Colombia. All figures in this report are expressed in Mexican pesos, unless otherwise noted. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures for Mexico and Colombia exclude transit and

Table 1: Financial & Operational Highlights 1

Second Quarter

% Var

2018

2019

Financial Highlights

Total Revenue

3,887,392

4,069,379

4.7

Mexico

2,579,526

2,777,678

7.7

San Juan

831,818

784,432

(5.7)

Colombia

476,048

507,269

6.6

Commercial Revenues per PAX

99.7

99.7

0.0

Mexico

115.5

115.4

(0.1)

San Juan

109.8

114.4

4.2

Colombia

38.6

40.6

5.2

EBITDA

2,359,840

2,745,049

16.3

Net Income

1,098,404

1,523,506

38.7

Majority Net Income

1,086,332

1,426,741

31.3

Earnings per Share (in pesos)

3.6211

4.7558

31.3

Earnings per ADS (in US$)

1.8851

2.4759

31.3

Capex

407,185

170,830

(58.0)

Cash & Cash Equivalents

3,688,908

4,851,261

31.5

Net Debt

12,907,507

9,295,296

(28.0)

Net Debt / LTM EBITDA

1.49

0.92

(38.5)

Operational Highlights

Passenger Traffic

Mexico

8,332,943

8,727,405

4.7

San Juan

2,277,680

2,417,300

6.1

Colombia

2,495,862

2,868,929

14.9

general aviation passengers, unless otherwise noted. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Mexican Ps.19.2087 (source: Diario Oficial de la Federacion de Mexico) while Colombian peso figures are calculated at the exchange rate of COL$167.75 = Ps. 1.00 Mexican pesos (source: Investing). Definitions for EBITDA, Adjusted EBITDA Margin, Majority Net Income can be found on page 16 of this report.

ASUR 2Q19 Page 1 of 24

Passenger Traffic

ASUR's 2Q19 total passenger traffic increased 6.9% YoY reaching 14.0 million passengers driven by increases of 4.7% in Mexico, 6.1% in Puerto Rico, and 14.9% in Colombia.

Passenger traffic growth of 4.7% YoY in Mexico reflects increases of 9.3% and 0.7% in domestic and international traffic, respectively. Cancun was the main driver behind traffic growth, with increases of 5.3% and 1.1% in domestic and international traffic, respectively. The majority of ASUR's other Mexican airports also contributed to higher traffic. Note that during 2019, the impact of Holy Week on passenger traffic in Mexico began on April 12, while in 2018 it began in March.

Traffic in Puerto Rico increased 6.1% YoY, recovering following the impact of Hurricane Maria, which hit the island in September 2017. Domestic traffic increased 5.5% YoY while international traffic rose 11.4%.

Colombia reported a 14.9% YoY increase in total traffic driven by growth of 14.3% and 18.5% in domestic and international traffic, respectively. Rionegro Airport in Medellin was the main driver of traffic growth, reporting increases of 18.1% and 18.5% in domestic and international traffic, respectively.

Tables with detailed passenger traffic information for each airport can be found on page 19 of this report.

Table 2: Passenger Traffic Summary

Second Quarter

% Chg.

2018

2019

Total Mexico

8,332,943

8,727,405

4.7

- Cancun

6,392,782

6,554,989

2.5

- 8 Other Airports

1,940,161

2,172,416

12.0

Domestic Traffic

3,923,529

4,287,115

9.3

- Cancun

2,203,247

2,319,867

5.3

- 8 Other Airports

1,720,282

1,967,248

14.4

International Traffic

4,409,414

4,440,290

0.7

- Cancun

4,189,535

4,235,122

1.1

- 8 Others Airports

219,879

205,168

(6.7)

Total San Juan, Puerto Rico

2,277,680

2,417,300

6.1

Domestic Traffic

2,031,833

2,143,342

5.5

International Traffic

245,847

273,958

11.4

Total Colombia

2,495,862

2,868,929

14.9

Domestic Traffic

2,111,042

2,413,058

14.3

International Traffic

384,820

455,871

18.5

Total Traffic

13,106,485

14,013,634

6.9

Domestic Traffic

8,066,404

8,843,515

9.6

International Traffic

5,040,081

5,170,119

2.6

Six-Months

% Chg.

2018

2019

16,854,859

17,450,634

3.5

12,937,983

13,214,393

2.1

3,916,876

4,236,241

8.2

7,382,487

7,897,876

7.0

4,032,505

4,219,050

4.6

3,349,982

3,678,826

9.8

9,472,372

9,552,758

0.8

8,905,478

8,995,343

1.0

566,894

557,415

(1.7)

4,135,978

4,717,808

14.1

3,714,790

4,216,167

13.5

421,188

501,641

19.1

4,880,688

5,614,966

15.0

4,123,159

4,757,830

15.4

757,529

857,136

13.1

25,871,525

27,783,408

7.4

15,220,436

16,871,873

10.9

10,651,089

10,911,535

2.4

Note: Passenger figures for Mexico and Colombia exclude transit and general aviation passengers, while Puerto Rico includes transit passengers and general aviation.

Review of Consolidated Results

In May 2017, ASUR increased its share ownership in Aerostar, operator of LMM Airport in Puerto Rico, to 60% from its prior 50% ownership. Accordingly, until May 31, 2017, ASUR's ownership in Aerostar was accounted for by the equity method, while starting June 1, 2017, ASUR began to fully consolidate Aerostar results on a line by line basis. In addition, on October 19, 2017, ASUR acquired a 92.42% ownership stake in Airplan, which operates six airports in Colombia, and starting on that date, ASUR began to fully consolidate Airplan's operations on a line by line basis. On May 25, 2018, ASUR acquired an additional 7.58% ownership stake in Airplan, bringing its total share ownership in Airplan to 100.0%.

ASUR 2Q19 Page 2 of 24

Table 3: Summary of Consolidated Results

Second Quarter

% Chg.

2018

2019

Total Revenues

3,887,392

4,069,379

4.7

Aeronautical Services

2,259,322

2,425,088

7.3

Non-Aeronautical Services

1,420,201

1,522,412

7.2

Total Revenues Excluding Construction Revenues

3,679,523

3,947,500

7.3

Construction Revenues 1

207,869

121,879

(41.4)

Total Operating Costs & Expenses

2,090,054

1,984,125

(5.1)

Other Income

162,630

n/a

Operating Profit

1,797,338

2,247,884

25.1

Operating Margin

46.2%

55.2%

900 bps

Adjusted Operating Margin 2

48.8%

56.9%

810 bps

EBITDA

2,359,840

2,745,049

16.3

EBITDA Margin

60.7%

67.5%

675 bps

Adjusted EBITDA Margin 3

64.1%

69.5%

540 bps

Net Income

1,098,404

1,523,506

38.7

Majority Net Income

1,086,332

1,426,741

31.3

Earnings per Share

3.6211

4.7558

31.3

Earnings per ADS in US$

1.8851

2.4759

31.3

Total Commercial Revenues per Passenger 4

99.7

99.7

0.0

Commercial Revenues

1,315,392

1,406,447

6.9

Commercial Revenues from Direct Operations per

18.8

21.6

14.8

Passenger 5

Commercial Revenues Excl. Direct Operations per

80.9

78.2

(3.4)

Passenger

Six-Months

% Chg.

2018

2019

7,803,965

8,170,729

4.7

4,464,018

4,801,230

7.6

2,819,679

3,088,919

9.5

7,283,697

7,890,149

8.3

520,268

280,580

(46.1)

3,809,225

3,910,102

2.6

204,074

n/a

3,994,740

4,464,701

11.8

51.2%

54.6%

345 bps

54.8%

56.6%

174 bps

4,815,514

5,407,958

12.3

61.7%

66.2%

448 bps

66.1%

68.5%

243 bps

2,565,489

3,042,656

18.6

2,540,960

2,895,189

13.9

8.4699

9.6506

13.9

4.4094

5.0241

13.9

99.8

102.2

2.4

2,598,944

2,857,685

10.0

18.5

21.7

17.1

81.3

80.5

(1.0)

  1. Construction revenues for Airplan in 2Q18 include the actual construction revenues which is equal to the construction cost of Ps.166.7 million and an estimate to the downside of income derived from the valuation of the intangible asset to present value (construction income) of Ps.183.7 million, according to IFRIC 12. Construction revenues for Airplan in 2Q19 are equal to the construction cost of Ps.37.2 million.
  2. Adjusted Operating Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, Puerto Rico and Colombia and is equal to operating profit divided by total revenues excluding construction services revenues.
  3. Adjusted EBITDA Margin excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico and is calculated by dividing EBITDA by total revenues excluding construction services revenues.
  4. Passenger figures include transit and general aviation passengers for Mexico, Puerto Rico, and Colombia.
  5. Represents ASUR's operations in convenience stores.

Consolidated Revenues

Consolidated Revenues for 2Q19 rose 4.7% YoY, or Ps.182.0 million to Ps.4,069.4 million, mainly driven by increases of:

  • 7.3% in revenues from aeronautical services to Ps.2,425.1 million. Mexico contributed with Ps.1,615.8 million, while Puerto Rico and Colombia contributed with Ps.460.2 million and Ps.349.1 million, respectively; and
  • 7.2% in revenues from non-aeronautical services to Ps.1,522.4 million, mainly due to the 6.9% increase in commercial revenues. Mexico contributed with Ps.1,122.1 million in revenues from non-aeronautical services, while Puerto Rico and Colombia contributed with Ps.279.5 million and Ps.120.9 million, respectively.

This was partially offset by a 41.4%, or Ps.86.0 million, decline in revenues from construction services. This was mainly due to a decrease in construction revenues in Colombia and Puerto Rico, as a result of lower capital expenditures and other investments in concessioned assets during the period.

Excluding revenues from construction services, which are deducted as costs under IFRS accounting standards, total revenues would have increased 7.3% YoY to Ps.3,947.5 million. Mexico contributed with 69.4% of total revenues excluding revenues from construction services, while Puerto Rico and Colombia represented 18.7% and 11.9%, respectively.

Commercial Revenues in 2Q19 increased 6.9% YoY to Ps.1,406.4 million, mainly reflecting the 6.9% increase in total passenger traffic. Commercial revenues in Mexico rose 4.5% to Ps.1,011.0 million, mainly driven by the opening of new commercial spaces, including duty free, retail, food and beverages, and car rentals, among others. Likewise, Puerto Rico reported a YoY increase of 10.6% to Ps.276.6 million in commercial revenues, and Colombia an increase of 20.9% to Ps.118.9 million.

ASUR 2Q19 Page 3 of 24

Commercial Revenues per Passenger remained practically unchanged at Ps.99.7 in 2Q19. Mexico contributed with commercial revenues per passenger of Ps.115.4 in 2Q19, Puerto Rico with Ps.114.4, and Colombia with Ps.40.6. Commercial revenues per passenger declined 0.1% in Mexico and increased 4.2% in Puerto Rico and 5.2% in Colombia.

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses, including construction costs, for 2Q19 declined 5.1% YoY, or Ps.105.9 million, to Ps.1,984.1 million.

Excluding construction costs, operating costs and expenses increased 0.6%, or Ps.11.2 million, year-on-year, reflecting the following variations:

  • A 6.1%, or Ps.54.8 million, increase in Mexico reflecting higher energy and maintenance costs, along with increases in technical assistance and concession costs;
  • A 0.5%, or Ps.2.7 million decline in Puerto Rico mainly due to a lower maintenance provision; and
  • A 9.8%, or Ps.40.9 million, decline in Colombia composed of: i) a Ps.18.5 million decline in the the provision for labor litigation expenses for employees of a contractor created in previous years, partially offset by a Ps.6.3 million increase in the maintenance provision for the future replacement of fixed assets as per IFRIC12 and ii) a 19.7%, or Ps.38.3 million, decline in depreciation and amortization principally reflecting a change in amortization methodology, which starting January 2019 is on a straight-line basis instead of the percentage of completion method which implied variations in the accumulated amortization rate of the concession. This was partially offset by the recognition starting March 2018 of the amortization of the concession resulting from the valuation of ASUR's investment in Airplan.

Cost of Services rose by 0.9%, or Ps.8.8 million. In Mexico, cost of services increased 7.5% YoY, or Ps.34.5 million, mainly reflecting higher maintenance expenses, along with increased energy costs resulting from higher consumption and utility tariffs. By contrast, cost of services in Colombia declined 10.1%, or Ps.14.5 million, principally due to a Ps.18.5 million decline in the provision for labor litigation expenses for employees of a contractor created in previous years, partially offset by a Ps.6.3 million increase in the maintenance provision for the future replacement of fixed assets as per IFRIC12. Cost of services in Puerto Rico declined 3.3%, or Ps.11.2 million.

Construction Costs declined by 49.0% YoY, or Ps.117.1 million. This was mainly driven by declines of 64.7%, or Ps.82.3 million in Puerto Rico and 59.0%, or Ps.53.5 million in Colombia, partially offset by an increase of 88.6%, or Ps.18.7 million in Mexico.

G&A Expenses, which reflect administrative expenses in Mexico, increased 2.6% YoY mainly reflecting higher salaries, partly offset by a decline in travel expenses and professional fees.

Consolidated Technical Assistance increased 6.8% YoY, mainly reflecting EBITDA growth in Mexico, excluding extraordinary items, a factor in the calculation of the fee.

Concession Fees increased 9.9% YoY, principally reflecting higher fees paid to the Mexican government, mainly due to an increase in regulated revenues in Mexico, a factor in the calculation of the fee. Concession fees for 2Q19 also reflect increases in Puerto Rico and Colombia.

Depreciation and Amortization declined 5.4%, or Ps.28.5 million, principally due to a Ps.38.3 million, or 19.7% decline in Colombia, resulting mainly from the change in the amortization methodology, which as of January 1, 2019 is on a straight line rather than a percentage of completion basis. This was partially offset by the recognition starting March 2018 of the amortization of the concession resulting from the valuation of ASUR's investment in Airplan under IFRS 3. By contrast, depreciation and amortization in Mexico increased 1.7%, or Ps.3.0 million increase, while Puerto Rico reported an increase of 4.3%, or Ps.6.9 million, mainly from the recognition starting March 2018 of the amortization of the intangible asset resulting from the valuation of the investment in Aerostar under IFRS 3, while.

ASUR 2Q19 Page 4 of 24

Consolidated Operating Profit and EBITDA

In 2Q19, ASUR reported a Consolidated Operating Profit of Ps.2,247.9 million and Operating Margin of 55.2%. This was principally due to increases of 7.3%, or Ps.165.8 million, in aeronautical revenues, and 7.2%, or Ps.102.2 million in non-aeronautical revenues. Mexico reported an operating profit of 1,783.0 million, Puerto Rico of Ps.372.6 million, and Colombia Ps.92.3 million.

Additionally, during 2Q19 Puerto Rico benefited from a Ps.162.6 million insurance claim recovery in connection with Hurricane Maria in 2017. Excluding this one-time income, operating profit for Puerto Rico in 2Q19 would have been Ps.210.0 million, and consolidated operating profit would have been Ps.2,085.3 million.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets in Mexico, Colombia, and Puerto Rico, and is calculated as operating profit divided by total revenues less construction services revenues, was 56.9% in 2Q19 compared with 48.8% in 2Q19.

EBITDA increased 16.3%, or Ps.385.2 million, to Ps.2,745.0 million in 2Q19. EBITDA increased 6.9%, or Ps.126.8 million in Mexico, 59.5%, or Ps.202.2 million in Puerto Rico, and 29.3%, or Ps.56.2 million in Colombia. 2Q19 EBITDA Margin was 67.5% compared to 60.7% in 2Q18. Excluding the Ps.162.6 million onetime income discussed above, consolidated EBITDA for 2Q19 would have been Ps.2,582.4 million and EBITDA for Puerto Rico would have been Ps.379.4 million, representing YoY increases of 9.4% and 11.7%, respectively.

Adjusted EBITDA Margin, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Puerto Rico, and Colombia was 69.5% in 2Q19 compared to 64.1% in 2Q18.

Consolidated Comprehensive Financing Gain (Loss)

Table 4: Consolidated Comprehensive Financing Gain (Loss)

Second Quarter

% Chg.

2018

2019

Interest Income

80,617

87,877

9.0

Interest Expense

(304,425)

(273,731)

(10.1)

Foreign Exchange Gain (Loss), Net

27,670

8,291

(70.0)

Total

(196,138)

(177,563)

(9.5)

Six-Months

% Chg.

2018

2019

150,862

199,036

31.9

(615,931)

(558,135)

(9.4)

72,587

(9,808)

n/a

(392,482)

(368,907)

(6.0)

In 2Q19, ASUR reported a Ps.177.6 million Consolidated Comprehensive Financing Loss, compared to a Ps.196.1 million loss in 2Q18.

Interest expense declined by Ps.30.7 million during the period, or 10.1%, mainly reflecting a Ps.16.4 million decline in interest payments in Mexico as the Company paid down loans in June and November 2018, together with a Ps.16.6 million decline in interest payments in Colombia, reflecting a loan payments in 2H18. Interest income increased Ps.7.3 million, or 9.0%, reflecting a higher cash balance in the quarter.

In 2Q19, ASUR reported a foreign exchange gain of Ps.8.3 million, resulting from the 1.3% quarterly average appreciation of the Mexican peso against the U.S. dollar together with a lower U.S. dollar foreign currency net asset position. This compares to a Ps.27.7 million foreign exchange gain in 2Q18 resulting from the 7.3% quarterly average Mexican peso depreciation during that period on a higher foreign currency net asset position.

Income Taxes

Income Taxes for 2Q19 increased by Ps.44.0 million year-over-year, principally due to the combination of following factors:

  • A Ps.65.8 million YoY decline in deferred income taxes, mainly reflecting the reduction in the tax rate used for the calculation of deferred income taxes in Colombia from 33% to 30% resulting from the fiscal reform enacted on December 23, 2018. This was partially offset by a decrease in the tax benefit in Mexico resulting from a change in the tax amortization rate on the concessioned assets starting in the second quarter of

ASUR 2Q19 Page 5 of 24

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ASUR - Grupo Aeroportuario del Sureste SA de CV published this content on 24 July 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2019 15:14:07 UTC