Grupo Aeroportuario del Pacifico Announces Results for the Second Quarter of 2021

·41 min read

GUADALAJARA, Mexico, July 29, 2021 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the second quarter ended June 30, 2021 (2Q21) (at the end of this report, tables are presented of passenger traffic and consolidated results for 2021 compared to 2019, in order to illustrate the recovery of our financial results and their trend). Figures are unaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

COVID-19 Impact

During the first half of the year (1H21), passenger traffic increased 37.8% compared to 1H20 and decreased 23.4% as compared to 1H19, demonstrating a better-than-expected recovery, despite continuing restrictions on international travel. The United States Government expanded the requirement for negative COVID-19 testing for all air passengers entering the United States beginning January 26, 2021. Additionally, as of January 7, 2021, there were similar testing requirements for air passengers traveling to Canada, and subsequently, the Canadian Government suspended flights with Mexico and the Caribbean until July 5, 2021, directly affecting the recovery of passenger traffic levels at our Puerto Vallarta, Montego Bay and Kingston airports.

Company measures during 2Q21:

  • The Company continued supporting airlines and commercial clients. For commercial contracts, the Company granted discounts on guaranteed minimum rent amounts in accordance with the percentage decrease in passenger traffic at each airport as compared to 2Q19, while maintaining our percentage of participation in revenues. With regards our support to the airlines, the Company continued its incentive program in accordance with the reactivation of routes and frequencies that were held prior to the pandemic.

  • The control measures for our cost of services were maintained throughout some expense line items and primarily at our airports that have experienced a slower recovery. However, as a result of the increase in passenger traffic during 2Q21, we have freed certain restrictions particularly on personnel, maintenance, security, and cleaning services, among others.

Impact of COVID-19 on the Company’s Financial Position:

During 2Q21, results were significantly better as compared to 2Q20, with an increase in revenues in 2Q21 of 345.4% and an increase in cost of services of 8.5%, the Company generated positive EBITDA of Ps. 2,797.1 million.

In 2Q21, operating activities continued generating positive cash flow. The Company reported a financial position of cash and cash equivalents as of June 30, 2021, of Ps. 15,503.0 million (1.6% lower than the 2Q20 balance). During 2Q21, the Company issued long-term bond certificates (Certificados Bursátiles) for Ps. 4,500.0 million. The proceeds were used to pay off the Ps. 1,000.0 million debt contracted for working capital in 2Q20 with Scotiabank, the Ps. 1,500.0 million maturity payment for the “GAP16” certificate (which was paid on July 2, 2021), and the remainder will be used for committed investments at our Mexican airports. Additionally, cash flow from operating activities was used to pay off the Ps. 1,000.0 million debt contracted for working capital in May 2020 with BBVA. Additionally, a payment of Ps. 3.8230950615 per share outstanding was made as a capital reduction and Ps. 872.9 million in share repurchases were made during 2Q21.

In 2Q21, the Company performed an assessment of the portfolio risk of our airlines and commercial clients in terms of liquidity. As a result, during this quarter it was not necessary to recognize the reserve provision for expected credit losses due to growth and recovery of our main airlines and commercial clients.

During 2Q21, the Company continued evaluating the possible adverse impacts of the pandemic on its financial condition and operating results. The Company also reviewed key indicators and impairment tests of significant long-term assets, expected credit losses and recovery of assets due to deferred taxes. In this evaluation, the Company reviewed financial results for the short, medium, and long term, concluding that a significant deterioration of the Company’s assets is not expected. As such, the Company does not foresee a business interruption or closing operations at any of its airports. However, the Company cannot ensure that the negative effect of the pandemic will continue decreasing in the coming quarter, nor can it ensure that local and global economic conditions will improve. The Company can also not predict the availability of financing, or what general credit conditions will be.

The Company will continue to monitor the pandemic’s adverse effects on the results of operations, including the monitoring of key indicators, impairment tests, projections, budgets, fair values, future cash flow related to the recovery of significant financial and non-financial assets, as well as possible contingencies. The Company will continue informing the market in a timely manner regarding future material updates on airport operations and the measures adopted for preserving liquidity and ensuring business continuity.

Summary of Results 2Q21 vs. 2Q20 (and 2Q19 for purposes of illustrating the recovery trend):

  • The sum of aeronautical and non-aeronautical services revenues increased by Ps. 3,051.2 million, or 345.4% (Ps. 399.7 million, or 11.3%, as compared to 2Q19). Total revenues increased by Ps. 3,410.7 million, or 229.7% (Ps. 1,238.3 million, or 33.9%, as compared to 2Q19).

  • Cost of services increased by Ps. 52.1 million, or 8.1% (as compared to 2Q19, cost of services decreased Ps. 9.7 million, or 1.4%).

  • Income from operations increased by Ps. 2,655.4 million, or 720.3% (Ps. 287.7 million, or 14.4%, as compared to 2Q19).

  • EBITDA increased by Ps. 2,660.6 million, or 1,948.8% (Ps. 372.2 million, or 15.3%, as compared to 2Q19), going from Ps. 136.5 million in 2Q20 to Ps. 2,797.1 million in 2Q21. EBITDA margin (excluding the effects of IFRIC 12) increased from 15.6% in 2Q20 to 71.2% in 2Q21 (EBITDA margin (excluding the effects of IFRIC 12) was 68.8% in 2Q19).

  • Net comprehensive income increased Ps. 2,247.0 million, or 237.5% (Ps. 228.7 million, or 18.8%, as compared to 2Q19), from a loss of Ps. 946.0 million in 2Q20 to an income of Ps. 1,300.9 million in 2Q21.

Passenger Traffic

During 2Q21, total passengers at the Company’s 14 airports increased by 9,373.9 thousand passengers, an increase of 562.6%, compared to 2Q20 (as compared to 2Q19, total passengers decreased by 1,169.3 thousand, or 9.6%).

During 2Q21, the following new routes were opened:

National:

Airline

Departure

Arrival

Opening date

Frequencies

Aeromar

La Paz

Mazatlán

June 17, 2021

2 weekly frequencies

Volaris

Méxicali

Cancún

June 18, 2021

2 weekly frequencies

Note: Frequencies can vary without prior notice.

International:

Airline

Departure

Arrival

Opening date

Frequencies

United

Guanajuato

Chicago O’Hare

June 3, 2021

7 weekly frequencies

American Airlines

Hermosillo

Dallas Fort Worth

June 3, 2021

7 weekly frequencies

JetBlue

Los Cabos

Los Ángeles

June 17, 2021

6 weekly frequencies

JetBlue

Los Cabos

Nueva York (JFK)

June 17, 2021

5 weekly frequencies

Note: Frequencies can vary without prior notice.

Domestic Terminal Passengers – 14 airports (in thousands):

Airport

2Q20

2Q21

Change

6M20

6M21

Change

Guadalajara

393.8

2,177.8

453.0%

2,730.3

3,751.4

37.4%

Tijuana *

460.3

1,773.3

285.3%

1,880.3

3,184.1

69.3%

Los Cabos

76.1

520.5

584.0%

478.8

887.4

85.3%

Puerto Vallarta

34.0

453.1

1233.5%

401.8

753.5

87.6%

Guanajuato

55.9

394.9

606.6%

480.5

680.9

41.7%

Montego Bay

0.0

0.0

0.0%

1.0

0.0

(100.0%)

Hermosillo

58.5

360.8

517.2%

454.6

618.4

36.0%

Mexicali

46.9

273.0

481.5%

323.9

463.2

43.0%

Morelia

46.1

145.8

216.2%

171.9

255.7

48.7%

La Paz

33.5

228.5

582.2%

247.0

397.7

61.0%

Aguascalientes

20.0

144.6

622.4%

157.6

242.4

53.8%

Kingston

0.0

0.7

3204.8%

1.3

0.7

(46.6%)

Los Mochis

10.6

91.7

763.9%

97.4

162.6

66.9%

Manzanillo

1.9

23.1

1105.9%

25.1

40.3

60.4%

Total

1,237.6

6,587.9

432.3%

7,451.5

11,438.1

53.5%

*CBX users are classified as international passengers.

International Terminal Passengers – 14 airports (in thousands):

Airport

2Q20

2Q21

Change

6M20

6M21

Change

Guadalajara

159.9

949.3

493.7%

1,117.7

1,544.3

38.2%

Tijuana *

140.7

737.8

424.4%

825.0

1,162.6

40.9%

Los Cabos

28.2

983.4

3392.3%

975.2

1,517.8

55.6%

Puerto Vallarta

25.0

575.8

2201.1%

1,111.3

928.2

(16.5%)

Guanajuato

16.9

163.4

867.5%

165.1

248.8

50.7%

Montego Bay

16.7

656.8

3832.9%

1,149.6

961.5

(16.4%)

Hermosillo

1.9

25.9

1286.7%

20.6

45.8

121.8%

Mexicali

0.1

1.1

1108.6%

1.3

1.8

39.9%

Morelia

9.3

101.8

996.6%

108.9

176.9

62.4%

La Paz

0.4

4.3

871.7%

3.8

8.3

119.9%

Aguascalientes

6.9

54.6

696.6%

55.3

88.6

60.2%

Kingston

21.6

183.4

749.1%

375.1

298.8

(20.3%)

Los Mochis

0.1

2.4

3542.4%

1.3

4.0

198.6%

Manzanillo

1.1

12.1

1031.6%

29.5

21.5

(27.3%)

Total

428.6

4,452.2

938.7%

5,939.9

7,008.7

18.0%

*CBX users are classified as international passengers.

Total Terminal Passengers – 14 airports (in thousands):

Airport

2Q20

2Q21

Change

6M20

6M21

Change

Guadalajara

553.7

3,127.2

464.8%

3,848.1

5,295.7

37.6%

Tijuana *

600.9

2,511.1

317.9%

2,705.3

4,346.6

60.7%

Los Cabos

104.3

1,503.9

1342.5%

1,454.0

2,405.1

65.4%

Puerto Vallarta

59.0

1,028.9

1643.8%

1,513.1

1,681.8

11.1%

Guanajuato

72.8

558.3

667.2%

645.6

929.7

44.0%

Montego Bay

16.7

656.8

3832.9%

1,150.6

961.5

(16.4%)

Hermosillo

60.3

386.8

541.1%

475.2

664.2

39.8%

Mexicali

47.0

274.1

482.8%

325.2

465.0

43.0%

Morelia

55.4

247.6

347.0%

280.8

432.5

54.0%

La Paz

33.9

232.9

586.0%

250.8

406.0

61.9%

Aguascalientes

26.9

199.3

641.3%

212.9

330.9

55.4%

Kingston

21.6

184.1

751.5%

376.4

299.5

(20.4%)

Los Mochis

10.7

94.1

781.0%

98.7

166.6

68.7%

Manzanillo

3.0

35.2

1079.4%

54.6

61.7

13.0%

Total

1,666.2

11,040.1

562.6%

13,391.4

18,446.9

37.8%

*CBX users are classified as international passengers.

CBX (thousands)

Table 5

Airport

2Q20

2Q21

Change

6M20

6M21

Change

Tijuana

140.4

731.6

421.1%

817.7

1,152.6

41.0%


Consolidated Results for the Second Quarter of 2021 (in thousands of pesos):

2Q20

2Q21

Change

Revenues

Aeronautical services

551,875

3,023,604

447.9%

Non-aeronautical services

331,641

911,151

174.7%

Improvements to concession assets (IFRIC 12)

601,542

960,983

59.8%

Total revenues

1,485,058

4,895,738

229.7%

Operating costs

Costs of services:

643,554

695,644

8.1%

Employee costs

239,260

289,828

21.1%

Maintenance

97,402

109,037

11.9%

Safety, security & insurance

104,079

124,605

19.7%

Utilities

79,692

95,591

20.0%

Other operating expenses

123,121

76,583

(37.8%)

Technical assistance fees

8,777

135,441

1443.1%

Concession taxes

94,721

303,817

220.7%

Depreciation and amortization

505,174

510,380

1.0%

Cost of improvements to concession assets (IFRIC 12)

601,542

960,983

59.8%

Other (income) expense

(58)

2,712

4775.9%

Total operating costs

1,853,710

2,608,977

40.7%

(Loss) income from operations

(368,651)

2,286,761

720.3%

Financial Result

(311,089)

(406,199)

30.6%

Share of loss of associates

(83)

-

100.0%

(Loss) income before income taxes

(679,823)

1,880,562

376.6%

Income taxes

97,616

(456,589)

(567.7%)

Net (loss) income

(582,207)

1,423,973

344.6%

Currency translation effect

(66,233)

(146,953)

121.9%

Cash flow hedges, net of income tax

(287,997)

23,233

108.1%

Remeasurements of employee benefit – net income tax

(9,558)

735

107.7%

Comprehensive (loss) income

(945,995)

1,300,988

237.5%

Non-controlling interest

29,645

13,545

(54.3%)

Comprehensive (loss) income attributable to controlling interest

(916,350)

1,314,533

243.5%

2Q20

2Q21

Change

EBITDA

136,523

2,797,141

1948.8%

Comprehensive (loss) income

(945,994.96

1,300,988

237.5%

Comprehensive (loss) income per share (pesos)

(1.69

2.5018

248.4%

Comprehensive (loss) income per ADS (US dollars)

(0.73

1.2568

272.0%

Operating (loss) income margin

(24.8%)

46.7%

288.2%

Operating (loss) income margin (excluding IFRIC 12)

(41.7%)

58.1%

239.3%

EBITDA margin

9.2%

57.1%

521.5%

EBITDA margin (excluding IFRIC 12)

15.6%

71.2%

357.6%

Costs of services and improvements / total revenues

83.8%

33.8%

(59.6%)

Cost of services / total revenues (excluding IFRIC 12)

72.8%

17.7%

(75.7%)

- Net (loss) income and comprehensive (loss) income per share for 2Q21 were calculated based on 520,024,505 shares outstanding as of June 30, 2021, and for 2Q20 were calculated based on 525,525,547 shares outstanding as of June 30, 2020. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.9060 per U.S. dollar (the noon buying rate on June 30, 2021, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay and Kingston airports, the average three-month exchange rate of Ps. 20.0503 per U.S. dollar for the three months ended June 30, 2021, was used.

Revenues (2Q21 vs. 2Q20)

  • Aeronautical services revenues increased by Ps. 2,471.7 million, or 447.9%.

  • Non-aeronautical services revenues increased by Ps. 579.5 million, or 174.7%.

  • Revenues from improvements to concession assets increased by Ps. 359.4 million, or 59.8%.

  • Total revenues increased by Ps. 3,410.7 million, or 229.7%.

  • The change in aeronautical services revenues was composed primarily of the following factors:

    1. Revenues at the Company’s Mexican airports increased by Ps. 2,201.1 million or 481.6% compared to 2Q20, mainly as a result of the 526.5% increase in passenger traffic. As international passenger traffic accelerates and business passenger traffic recovers, the Company expects to be closer to recovering pre-pandemic revenue levels.

    2. Revenues from the Montego Bay airport increased by Ps. 197.5 million, or 393.3%, compared to 2Q20. This was mainly due to the 3,832.9% increase in passenger traffic. The passenger traffic increase was partially offset by the 14.2% appreciation of the peso versus the U.S. dollar during 2Q21, which went from an average exchange rate of Ps. 23.3631 in 2Q20 to Ps. 20.0503 in 2Q21.

    3. Revenues from the Kingston airport increased by Ps. 73.0 million, or 163.5% compared to 2Q20, mainly due to a 751.5% increase in passenger traffic. The appreciation of the peso versus the dollar partially offset the increase in passenger traffic.

  • The change in non-aeronautical services revenues was composed primarily of the following factors:

    1. Revenues from the Company’s Mexican airports increased by Ps. 511.2 million, or 204.5%, compared to 2Q20. Revenues from businesses operated by third parties increased by Ps. 368.3 million. This was mainly due to an increase in revenues from food and beverage, duty-free stores, car rentals, retail, and time shares, which jointly increased by Ps. 318.1 million, or 239.6%. Revenues from businesses operated directly by the Company increased by Ps. 128.1 million, or 176.6%, while the recovery of costs increased by Ps. 14.7 million, or 62.0%.

    2. Revenues from the Montego Bay airport increased by Ps. 57.8 million, or 99.6%, compared to 2Q20. Revenues in U.S. dollars increased by US$ 3.3 million, or 132.6%. However, the 14.2% appreciation of the peso versus the dollar partially offset the revenue increase in 2Q21.

    3. Revenues from the Kingston airport declined by Ps. 10.6 million, or 44.7%, compared to 2Q20. Revenues in U.S. dollars decreased by US$ 0.7 million, or 68.7%.

2Q20

2Q21

Change

Businesses operated by third parties:

Duty-free

25,647

141,096

450.1%

Food and beverage

32,575

122,340

275.6%

Retail

36,812

100,186

172.2%

Car rentals

46,340

94,946

104.9%

Leasing of space

49,487

61,215

23.7%

Time shares

1,085

49,656

4475.7%

Ground transportation

12,414

34,431

177.4%

Communications and financial services

5,820

22,524

287.0%

Other commercial revenues

13,548

31,427

132.0%

Total

223,727

657,820

194.0%

Businesses operated directly by us:

Car parking

23,130

97,921

323.4%

VIP lounges

19,401

52,638

171.3%

Advertising

23,739

11,414

(51.9%)

Convenience stores

8,542

43,852

413.4%

Total

74,811

205,826

175.1%

Recovery of costs

33,103

47,503

43.5%

Total Non-aeronautical Revenues

331,641

911,151

174.7%

Figures expressed in thousands of Mexican pesos.

  • Revenues from improvements to concession assets1
    Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 359.4 million, or 59.8%, compared to 2Q20, mainly in:

    1. The Company’s Mexican airports, which increased by Ps. 401.3 million, or 74.6%, as a result of the increase in committed investments in the Master Development Program for the 2020-2024 period.

    2. Improvements to concession assets at the Montego Bay airport decreased Ps. 41.8 million, or 66.0%. During 2Q21, no investments in improvements to concession assets were made at the Kingston airport.

________________________
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.

Total operating costs increased by Ps. 755.3 million, or 40.7%, compared to 2Q20, mainly due to a Ps. 359.4 million, or 59.8%, increase in the cost of improvements to the concession assets (IFRIC-12), a Ps. 335.8 million, or 324.4%, increase in concession taxes and technical assistance fees, and a Ps. 52.1 million, or 8.1% increase in cost of services (excluding the cost of improvements to concession assets, operating costs increased Ps. 395.8 million, or 31.6%). Total operating costs increase was composed primarily of the following factors:

Mexican Airports:

  • Operating costs increased by Ps. 726.2 million, or 50.2%, compared to 2Q20, primarily due to a Ps. 401.3 million, or 74.6%, increase in the cost of improvements to the concession assets (IFRIC-12) (excluding this cost, operating costs increased by Ps. 324.9 million or 35.8%), a Ps. 261.6 million, or 593.6%, increase in technical assistance fees and concession taxes, a Ps. 45.2 million, or 9.1%, increase in cost of services and a Ps. 20.3 million, or 5.6%, increase in depreciation and amortization.

The change in the cost of services during 2Q21 was mainly due to:

  • Employee costs increased Ps. 53.2 million, or 28.5%, compared to 2Q20, mainly due to the recognition of labor provisions in accordance with the reform to the Labor Law in Mexico and the hiring of additional personnel as required for airport operations.

  • Safety, security, and insurance costs increased Ps. 21.9 million, or 32.8%, compared to 2Q20, mainly due to an increase in the number of security staff as compared to 2Q20 when the partial closure of some operating areas reduced the need for personnel.

  • Maintenance costs increased by Ps. 12.7 million, or 16.7%, compared to 2Q20.

  • Other operating expenses decreased by Ps. 49.5 million or 44.0%, compared to 2Q20, mainly due to a Ps. 67.5 million decrease in the allowance for credit losses and the cost of sanitation supplies, purchase of supplies and donations to the medical sector for the prevention of COVID-19. This decrease was partially offset by a Ps. 18.0 million increase in the cost of sales in VIP lounges and convenience stores, FBO services and travel expenses.

Montego Bay Airport:

  • Operating costs decreased by Ps. 25.7 million, or 8.3%, compared to 2Q20, mainly due to a Ps. 41.8 million, or 66.0%, decrease in cost of improvements to the concession assets (IFRIC-12), a Ps. 15.1 million, or 11.0%, decrease in depreciation and amortization and the 14.2% appreciation of the Mexican peso against the U.S. dollar. However, this decrease was partially offset by an increase in concession taxes of Ps. 25.5 million, or 161.1%. Operating costs in U.S. dollars declined by US$ 0.3 million.

Kingston Airport:

  • Operating costs increased by Ps. 54.8 million, or 55.2%, compared to 2Q20, mainly due to a Ps. 48.7 million, or 111.6% increase in concession taxes, and a Ps. 6.2 million, or 11.7% increase in the cost of services. Operating costs in U.S. dollars increased by US$ 3.1 million.

Operating margin for 2Q21 went from a negative margin of 24.8% in 2Q20 to a positive margin of 46.7% in 2Q21. Excluding the effects of IFRIC-12, operating margin went from a negative margin of 41.7% to a positive margin of 58.1% in 2Q21. Operating income increased Ps. 2,655.4 million, or 720.3%, compared to 2Q20.

EBITDA margin went from 9.2% in 2Q20 to 57.1% in 2Q21. Excluding the effects of IFRIC-12, EBITDA margin went from 15.6% in 2Q20 to 71.2% in 2Q21. The nominal value of EBITDA was Ps. 2,797.1 million in 2Q21, compared to Ps. 136.5 million in 2Q20.

Financial cost increased by Ps. 95.1 million, from a net expense of Ps. 311.1 million in 2Q20 to a net expense of Ps. 406.2 million in 2Q21. This increase was mainly the result of:

  • Foreign exchange rate fluctuations, which went from an expense of Ps. 49.3 million in 2Q20 to an expense of Ps. 102.1 million in 2Q21. This generated an increase in the foreign exchange loss of Ps. 52.7 million. The currency translation effect increased Ps. 80.7 million, compared to 2Q20.

  • An increase in interest expenses of Ps. 53.6 million, or 15.0%, compared to 2Q20, mainly due to higher debt as a result of the issuance of long-term bonds and bank loans disbursed during 2020.

  • Interest income increased by Ps. 11.3 million, or 11.7%, compared to 2Q20, mainly due to an increase in the average balance of cash and cash equivalents during 2Q21 as compared to 2Q20.

In 2Q21, comprehensive income increased by Ps. 2,247.0 million, or 237.5%, compared to 2Q20. This increase was mainly due to the Ps. 2,560.4 million increase in profit before taxes derived from the significant increase in passenger traffic, as well as the Ps. 311.2 million increase in the cash flow hedge reserve. This increase was partially offset by an increase in income taxes of Ps. 554.2 million.

During 2Q21, net income increased by Ps. 2,006.2 million, or 344.6%, compared to 2Q20. Income taxes increased by Ps. 633.7 million and were partially offset by a Ps.79.6 million increase in the benefit for deferred taxes, mainly due to a higher inflation rate, that went from deflation of 0.62% in 2Q20 to inflation of 1.01% in 2Q21.

Consolidated Results for the First Six Months of 2021 (in thousands of pesos):

6M20

6M21

Change

Revenues

Aeronautical services

3,675,657

5,096,371

38.7%

Non-aeronautical services

1,353,482

1,547,138

14.3%

Improvements to concession assets (IFRIC 12)

1,424,757

1,890,226

32.7%

Total revenues

6,453,897

8,533,734

32.2%

Operating costs

Costs of services:

1,380,112

1,348,342

(2.3%)

Employee costs

486,466

533,462

9.7%

Maintenance

211,805

203,476

(3.9%)

Safety, security & insurance

229,405

248,431

8.3%

Utilities

171,319

172,764

0.8%

Other operating expenses

281,117

190,209

(32.3%)

Technical assistance fees

141,041

223,798

58.7%

Concession taxes

538,427

517,657

(3.9%)

Depreciation and amortization

987,231

1,013,125

2.6%

Cost of improvements to concession assets (IFRIC 12)

1,424,757

1,890,226

32.7%

Other expense (income)

9,022

(637)

(107.1%)

Total operating costs

4,480,591

4,992,510

11.4%

Income from operations

1,973,307

3,541,224

79.5%

Financial Result

(326,183)

(485,503)

48.8%

Share of loss of associates

3

1

66.7%

Income before income taxes

1,647,127

3,055,722

85.5%

Income taxes

(421,271)

(594,170)

41.0%

Net income

1,225,856

2,461,552

100.8%

Currency translation effect

1,351,131

(85,224)

(106.3%)

Cash flow hedges, net of income tax

(348,105)

240,027

169.0%

Remeasurements of employee benefit – net income tax

(9,705)

1,837

118.9%

Comprehensive income

2,219,177

2,618,192

18.0%

Non-controlling interest

(164,109)

650

100.4%

Comprehensive income attributable to controlling interest

2,055,068

2,618,842

27.4%

6M20

6M21

Change

EBITDA

2,960,536

4,554,349

53.8%

Comprehensive income

2,219,176

2,618,192

18.0%

Comprehensive income per share (pesos)

3.9558

5.0347

27.3%

Comprehensive income per ADS (US dollars)

1.7138

2.5293

19.2%

Operating income margin

30.6%

41.5%

35.7%

Operating income margin (excluding IFRIC 12)

39.3%

53.3%

35.5%

EBITDA margin

45.9%

53.4%

16.3%

EBITDA margin (excluding IFRIC 12)

58.9%

68.6%

16.5%

Costs of services and improvements / total revenues

43.5%

38.0%

(12.7%)

Cost of services / total revenues (excluding IFRIC 12)

27.4%

20.3%

(26.0%)

- Net income and comprehensive income per share for 1H21 were calculated based on 520,024,505 shares outstanding and for 1H20 were calculated based on 525,525,547 shares outstanding. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 19.9060 per U.S. dollar (the noon buying rate on June 30, 2021, as published by the U.S. Federal Reserve Board).
- For purposes of the consolidation of the Montego Bay and Kingston airports, the average exchange rate of Ps. 19.8027 per U.S. dollar for the six months ended June 30, 2021, was used.

Revenues (1H21 vs. 1H20)

  • Aeronautical services revenues increased by Ps. 1,420.7 million, or 38.7%.

  • Non-aeronautical services revenues increased by Ps. 193.7 million, or 14.3%.

  • Revenues from improvements to concession assets increased by Ps. 465.5 million, or 32.7%.

  • Total revenues increased by Ps. 2,079.8 million, or 32.2%.

  • The change in aeronautical services revenues was composed of the following factors:

    1. Revenues at the Company’s Mexican airports increased by Ps. 1,529.8 million or 51.3% compared to 1H20, mainly as a result of the 44.9% increase in passenger traffic and the increase in the maximum tariffs applicable for 2021 as a result of the Extraordinary Review Process of our Master Development Program.

    2. Revenues from the Montego Bay airport decreased by Ps. 123.6 million, or 24.4%, compared to 1H20. This was mainly due to the 16.4% decrease in passenger traffic and the 6.6% appreciation of the peso versus the U.S. dollar during 1H21, which went from an average exchange rate of Ps. 21.6091 in 1H20 to Ps. 20.1847 in 1H21.

    3. Revenues from the Kingston airport increased by Ps. 14.4 million, or 7.8% compared to 1H20, mainly due to an increase in tariffs beginning in April 2020 and partially offset by a 20.4% decrease in passenger traffic and the 6.6% appreciation of the peso versus the dollar.

  • The change in non-aeronautical services revenues was composed primarily of the following factors:

    1. Revenues from the Company’s Mexican airports increased by Ps. 218.6 million, or 20.3%, compared to 1H20. Revenues from businesses operated by third parties increased by Ps. 193.3 million, or 27.9%. This was mainly due to an increase in revenues from duty-free stores, food and beverage, time shares, retail, car rentals and other commercial revenues, which jointly increased by Ps. 176.7 million, or 32.3%. Revenues from businesses operated directly by the Company increased by Ps. 27.6 million, or 9.0%. This increase was primarily due to a Ps. 67.1 million increase in revenue from parking and was partially offset by a Ps. 49.7 million decrease in combined revenues from publicity and VIP lounges. The recovery of costs decreased by Ps. 2.4 million, or 3.3%.

    2. Revenues from the Montego Bay airport decreased by Ps. 10.6 million, or 5.2%, compared to 1H20. Revenues in U.S. dollars increased by US$ 0.2 million, or 1.5%. However, the 6.6% appreciation of the peso versus the dollar offset the revenue increase.

    3. Revenues from the Kingston airport declined by Ps. 14.2 million, or 18.8%, compared to 1H20. Revenues in U.S. dollars decreased by US$ 0.5 million, or 13.1%. The 6.6% appreciation of the peso versus the dollar further contributed to the decrease.

6M20

6M21

Change

Businesses operated by third parties:

Duty-free

177,674

222,438

25.2%

Food and beverage

177,321

203,829

14.9%

Retail

143,233

165,662

15.7%

Car rentals

156,716

175,653

12.1%

Leasing of space

105,197

110,244

4.8%

Time shares

53,543

80,020

49.4%

Ground transportation

50,674

61,072

20.5%

Communications and financial services

36,927

38,875

5.3%

Other commercial revenues

39,064

58,321

49.3%

Total

940,349

1,116,116

18.7%

Businesses operated directly by us:

Car parking

101,234

167,265

65.2%

VIP lounges

100,687

84,410

(16.2%)

Advertising

57,673

21,857

(62.1%)

Convenience stores

58,812

69,045

17.4%

Total

318,406

342,577

7.6%

Recovery of costs

94,727

88,445

(6.6%)

Total Non-aeronautical Revenues

1,353,482

1,547,138

14.3%

Figures expressed in thousands of Mexican pesos.

  • Revenues from improvements to concession assets2
    Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 465.5 million, or 32.7%, compared to 1H20, mainly in:

    1. The Company’s Mexican airports, which increased by Ps. 503.6 million, or 37.4%, as a result of the increase in committed investments in the Master Development Program for the 2020-2024 period.

    2. Improvements to concession assets at the Montego Bay airport decreased Ps. 38.1 million, or 48.0%. During 1H21, no investments in improvements to concession assets were made at the Kingston airport.

________________________
[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.

Total operating costs increased by Ps. 511.9 million, or 11.4%, compared to 1H20, mainly due to a Ps. 465.5 million, or 32.7%, increase in the cost of improvements to the concession assets (IFRIC-12) and a Ps. 61.9 million, or 8.3%, increase in concession taxes and technical assistance fees. This increase was partially offset by a Ps. 31.8 million, or 2.3% decrease in cost of services (excluding the cost of improvements to concession assets, operating costs increased Ps. 46.5 million, or 1.5%). Operating costs was composed primarily of the following factors:

Mexican Airports:

  • Operating costs increased by Ps. 715.4 million, or 20.7%, compared to 1H20, primarily due to a Ps. 503.6 million, or 37.4%, increase in the cost of improvements to the concession assets (IFRIC-12), a Ps. 170.2 million, or 33.1%, increase in technical assistance fees and concession taxes as a result of the increase in revenues, a Ps. 35.4 million, or 4.9%, increase in depreciation and amortization and a Ps. 13.0 million, or 1.3%, increase in the cost of services.

The cost of services during 1H21 was mainly comprised of the following:

  • Employee costs increased Ps. 58.5 million, or 15.5%, compared to 1H20, mainly due to the recognition of labor provisions in accordance with the reform to the Labor Law in Mexico and the hiring of additional personnel as required for airport operations.

  • Safety, security, and insurance costs increased Ps. 23.4 million, or 15.3%, compared to 1H20.

  • Other operating expenses decreased by Ps. 69.5 million or 30.2%, compared to 1H20, mainly due to a Ps. 72.1 million, or 91.4%, decrease in the allowance for credit losses, professional fees, publicity, sanitation supplies, and the decrease in the purchase of supplies and donations to the medical sector for the prevention of COVID-19.

Montego Bay Airport:

  • Operating costs decreased by Ps. 177.7 million, or 24.6% compared to 1H20, mainly due to a Ps. 108.9 million, or 60.8%, decrease in concession taxes, a Ps. 17.7 million, or 8.7%, decrease in the cost of services, a Ps. 38.1 million, or 48.0%, decrease in the cost of improvements to concession assets (IFRIC-12), and a Ps. 10.1 million, or 4.0%, decrease in depreciation and amortization. Operating costs in U.S. dollars declined by US$ 9.2 million.

Kingston Airport:

  • Operating costs decreased by Ps. 25.7 million, or 8.5% compared to 1H20, mainly due to a Ps. 26.9 million, or 19.1%, decrease in the cost of services. Operating costs in U.S. dollars decreased by US$ 1.3 million.

Operating margin went from 30.6% in 1H20 to 41.5% in 1H21. Excluding the effects of IFRIC-12, operating margin went from 39.3% to 53.3% in 1H21. Operating income increased Ps. 1,567.9 million, or 79.5%, compared to 1H20. EBITDA margin increased 750 basis points from 45.9% in 1H20 to 53.4% in 1H21. Excluding the effects of IFRIC-12, EBITDA margin increased 970 basis points from 58.9% in 1H20 to 68.6% in 1H21. The nominal value of EBITDA was Ps. 4,554.3 million in 1H21 compared to Ps. 2,960.5 million in 1H20, an increase of 53.8%. Financial cost increased by Ps. 159.3 million, from a net expense of Ps. 326.2 million in 1H20 to a net expense of Ps. 485.5 million in 1H21. This increase was mainly the result of:

  • Foreign exchange rate fluctuations went from an income of Ps. 187.1 million in 1H20 to an income of Ps. 117.5 million in 1H21. This generated a decrease in the foreign exchange gain of Ps. 69.6 million. Currency translation effect income also decreased by Ps. 1,436.4 million as compared to 1H20, due to the fact that the exchange rate for 1H20 closed at Ps. 22.9715 and for 1H21 it closed at Ps. 19.8027, an appreciation by the peso of 13.8%.

  • An increase in interest expense of Ps. 92.3 million, or 13.1%, compared to 1H20, mainly due to higher debt as a result of the issuance of long-term bonds issued during 2021.

  • Interest income increased by Ps. 2.6 million, or 1.4%, compared to 1H20, mainly due to an increase in the average balance of cash and cash equivalents during 1H21.

In 1H21, comprehensive income increased Ps. 399.0 million, or 18.0% compared to 1H20. This increase was mainly due to the Ps. 1,408.6 million increase in profit before taxes and the Ps. 588.1 million increase in the cash flow hedge reserve. This increase was partially offset by a Ps. 1,436.4 million decrease in currency translation effect.

During 1H21, net income increased Ps. 1,235.7 million, or 100.8% compared to 1H20. Income taxes increased by Ps. 172.9 million, or 41.0%, as a result of a Ps. 332.1 million increase in current income taxes and were partially offset by a Ps. 159.2 million increase in the benefit for deferred taxes, mainly due to a higher inflation rate, that went from 0.6% in 1H20 to 3.4% in 1H21.

Statement of Financial Position

Total assets as of June 30, 2021, increased by Ps. 1,435.0 million as compared to June 30, 2020, primarily due to the following items: (i) improvements to concession assets of Ps. 1,026.5 million; (ii) machinery, equipment and leasehold improvements and advances to suppliers of Ps. 729.7 million; (iii) trade accounts receivable of Ps. 494.4 million and (iv) other current assets of Ps. 394.3 million. This was partially offset by a Ps. 1,022.6 million decrease in the value of concession assets (due to the valuation of the Jamaica concessions in U.S. dollars and the appreciation of the peso), among others.

Total liabilities as of June 30, 2021, increased by Ps. 2,063.7 million compared to June 30, 2020. This increase was primarily due to the following items: (i) issuance of Ps. 4,500.0 million in long-term bonds and (ii) concession taxes of Ps. 190.8 million. This was partially offset by decreases of: (i) Ps. 2,000.0 million in bank loans, (ii) Ps. 590.2 million in derivative financial instruments and (iii) Ps. 227.1 million in deferred taxes, among others.

Recent Events

On July 2, 2021, the Ps. 1,500.0 million maturity payment was made on “GAP16” debt securities with the proceeds obtained from the issuance on May 7, 2021.

From March 1st, 2021, and as of the date of this report, the Company has repurchased 8,721,192 shares at an average price of Ps. 217.00 per share, for a total of Ps. 1,892.4 million.

Company Description

Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz, and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali, and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport in Kingston, Jamaica and took control of the operation in October 2019.

This press release contains references to EBITDA, a financial performance measure not recognized under IFRS, and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.

This press release 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 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.

In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a “whistleblower” program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site is www.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.


Exhibit A: Operating results by airport (in thousands of pesos):

Airport

2Q20

2Q21

Change

6M20

6M21

Change

Guadalajara

Aeronautical services

170,144

801,607

371.1%

975,551

1,428,326

46.4%

Non-aeronautical services

83,201

210,343

152.8%

302,391

372,292

23.1%

Improvements to concession assets (IFRIC 12)

172,627

281,771

63.2%

431,567

563,542

30.6%

Total Revenues

425,972

1,293,721

203.7%

1,709,507

2,364,159

38.3%

Operating (loss) income

(12,121)

663,821

5576.7%

667,015

1,144,946

71.7%

EBITDA

79,807

756,372

847.7%

849,966

1,340,433

57.7%

Tijuana

Aeronautical services

128,227

502,450

291.8%

508,525

834,812

64.2%

Non-aeronautical services

46,017

114,282

148.4%

163,218

201,045

23.2%

Improvements to concession assets (IFRIC 12)

95,507

408,844

328.1%

238,766

814,066

240.9%

Total Revenues

269,750

1,025,577

280.2%

910,509

1,849,922

103.2%

Operating income

1,084

413,895

38089.0%

305,299

644,762

111.2%

EBITDA

62,999

475,112

654.2%

429,375

774,446

80.4%

Los Cabos

Aeronautical services

44,404

539,396

1114.7%

474,805

863,652

81.9%

Non-aeronautical services

37,445

217,022

479.6%

252,977

346,090

36.8%

Improvements to concession assets (IFRIC 12)

108,233

124,067

14.6%

270,583

222,815

(17.7%)

Total Revenues

190,082

880,484

363.2%

998,365

1,432,558

43.5%

Operating (loss) income

(58,947)

548,325

1030.2%

392,276

819,034

108.8%

EBITDA

7,720

610,502

7807.6%

524,268

945,321

80.3%

Puerto Vallarta

Aeronautical services

29,989

329,995

1000.4%

484,538

555,761

14.7%

Non-aeronautical services

29,183

106,473

264.8%

170,709

175,514

2.8%

Improvements to concession assets (IFRIC 12)

75,804

78,275

3.3%

189,511

155,633

(17.9%)

Total Revenues

134,976

514,743

281.4%

844,758

886,909

5.0%

Operating (loss) income

(49,519)

289,658

684.9%

387,502

453,018

16.9%

EBITDA

(7,701)

332,049

4411.6%

469,982

542,136

15.4%

Montego Bay

Aeronautical services

50,229

247,781

393.3%

506,791

383,205

(24.4%)

Non-aeronautical services

58,020

115,814

99.6%

203,673

193,051

(5.2%)

Improvements to concession assets (IFRIC 12)

63,390

21,577

(66.0%)

79,377

41,273

(48.0%)

Total Revenues

171,639

385,172

124.4%

789,841

617,529

(21.8%)

Operating (loss) income

(136,422)

102,791

175.3%

67,090

72,485

8.0%

EBITDA

517

224,576

43305.5%

320,634

315,892

(1.5%)


Exhibit A: Operating results by airport (in thousands of pesos): (continued)

Airport

2Q20

2Q21

Change

6M20

6M21

Change

Guanajuato

Aeronautical services

21,967

148,653

576.7%

163,714

248,529

51.8%

Non-aeronautical services

16,977

36,051

112.4%

63,953

62,570

(2.2%)

Improvements to concession assets (IFRIC 12)

21,646

3,094

(85.7%)

54,116

6,187

(88.6%)

Total Revenues

60,590

187,798

210.0%

281,783

317,287

12.6%

Operating (loss) income

(8,907)

116,878

1412.2%

113,980

186,058

63.2%

EBITDA

9,224

135,633

1370.4%

149,494

223,356

49.4%

Hermosillo

Aeronautical services

17,314

82,214

374.8%

100,283

143,002

42.6%

Non-aeronautical services

11,519

19,910

72.8%

35,810

35,761

(0.1%)

Improvements to concession assets (IFRIC 12)

2,898

4,341

49.8%

7,246

8,682

19.8%

Total Revenues

31,731

106,465

235.5%

143,339

187,446

30.8%

Operating (loss) income

(15,892)

47,961

401.8%

31,792

70,345

121.3%

EBITDA

3,022

66,432

2098.3%

69,723

109,106

56.5%

Others (1)

Aeronautical services

89,602

371,509

314.6%

461,452

639,084

38.5%

Non-aeronautical services

49,280

89,727

82.1%

160,751

158,402

(1.5%)

Improvements to concession assets (IFRIC 12)

61,437

39,014

(36.5%)

153,592

78,027

(49.2%)

Total Revenues

200,319

500,250

149.7%

775,795

875,513

12.9%

Operating (loss) income

(96,136)

118,958

223.7%

(15,563)

134,498

964.2%

EBITDA

(36,625)

182,761

599.0%

102,764

264,510

157.4%

Total

Aeronautical services

551,875

3,023,604

447.9%

3,675,657

5,096,371

38.7%

Non-aeronautical services

331,641

909,622

174.3%

1,353,482

1,544,725

14.1%

Improvements to concession assets (IFRIC 12)

601,542

960,983

59.8%

1,424,757

1,890,226

32.7%

Total Revenues

1,485,058

4,894,209

229.6%

6,453,898

8,531,322

32.2%

Operating (loss) income

(376,860)

2,302,287

710.9%

1,949,390

3,525,147

80.8%

EBITDA

118,965

2,783,437

2239.7%

2,916,205

4,515,200

54.8%

(1) Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali, Morelia, and Kingston airports.


Exhibit B: Consolidated statement of financial position as of June 30 (in thousands of pesos):

2020

2021

Change

%

Assets

Current assets

Cash and cash equivalents

15,748,829

15,502,987

(245,842)

(1.6%)

Trade accounts receivable - Net

1,060,950

1,555,349

494,399

46.6%

Other current assets

821,097

1,215,368

394,271

48.0%

Total current assets

...

18,273,704

642,828

3.6%

Advanced payments to suppliers

367,078

627,829

260,751

71.0%

Machinery, equipment and improvements to leased buildings - Net

1,999,903

2,468,753

468,850

23.4%

Improvements to concession assets - Net

12,978,449

14,004,941

1,026,492

7.9%

Airport concessions - Net

11,426,767

10,404,130

(1,022,637)

(8.9%)

Rights to use airport facilities - Net

1,318,500

1,245,103

(73,397)

(5.6%)

Deferred income taxes

5,855,337

6,043,134

187,797

3.2%

Other non-current assets

212,791

157,094

(55,697)

(26.2%)

Total assets

51,789,700

53,224,688

1,434,988

2.8%

Liabilities

Current liabilities

6,079,799

5,390,130

(689,669)

(11.3%)

Long-term liabilities

22,821,284

25,574,660

2,753,376

12.1%

Total liabilities

28,901,083

30,964,790

2,063,707

7.1%

Stockholders' Equity

Common stock

6,185,082

4,185,082

(2,000,000)

(32.3%)

Legal reserve

1,592,551

1,592,551

-

0.0%

Net income

1,227,550

2,463,307

1,235,757

100.7%

Retained earnings

9,940,035

9,927,597

(12,438)

(0.1%)

Reserve for share repurchase

3,283,374

5,264,666

1,981,292

60.3%

Repurchased shares

(1,733,374)

(2,944,448)

(1,211,074)

69.9%

Foreign currency translation reserve

1,711,320

951,116

(760,204)

(44.4%)

Remeasurements of employee benefit – Net

(3,099)

(8,215)

(5,116)

165.1%

Cash flow hedges- Net

(520,200)

(231,080)

289,120

(55.6%)

Total controlling interest

21,683,239

21,200,576

(482,663)

(2.2%)

Non-controlling interest

1,205,379

1,059,323

(146,056)

(12.1%)

Total stockholder's equity

22,888,618

22,259,899

(628,719)

(2.7%)

Total liabilities and stockholders' equity

51,789,700

53,224,688

1,434,988

2.8%

The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).


Exhibit C: Consolidated statement of cash flows (in thousands of pesos):

2Q20

2Q21

Change

6M20

6M21

Change

Cash flows from operating activities:

Consolidated net (loss) income

(582,208)

1,423,973

344.6%

1,225,855

2,461,552

100.8%

Postemployment benefit costs

2,048

7,771

279.4%

6,666

16,671

150.1%

Allowance expected credit loss

41,084

(2,455)

(106.0%)

87,051

21,070

(75.8%)

Depreciation and amortization

505,174

510,380

1.0%

987,231

1,013,125

2.6%

(Gain) loss on sale of machinery, equipment and improvements to leased assets

(11,147)

739

106.6%

(14,199)

1,335

109.4%

Interest expense

312,080

419,651

34.5%

626,261

800,790

27.9%

Share of profit of associate

89

-

(100.0%)

3

(1)

(133.3%)

Provisions

885

6,635

649.7%

(1,345)

(5,677)

322.1%

Income tax expense

(97,616)

456,589

567.7%

421,271

594,170

41.0%

Unrealized exchange loss

(111,964)

(226,877)

102.6%

652,719

(63,839)

(109.8%)

Net loss on derivative financial instruments

30,312

-

(100.0%)

58,754

-

(100.0%)

88,737

2,596,406

2826.0%

4,050,266

4,839,196

19.5%

Changes in working capital:

(Increase) decrease in

Trade accounts receivable

711,733

(243,232)

(134.2%)

382,344

(316,920)

(182.9%)

Recoverable tax on assets and other assets

(617,650)

(18,877)

(96.9%)

(458,057)

(75,310)

(83.6%)

(Decrease) increase

Concession taxes payable

(411,611)

103,830

125.2%

(376,329)

60,738

116.1%

Accounts payable

(565,673)

174,976

130.9%

(343,322)

216,618

163.1%

Cash (used) generated by operating activities

(794,463)

2,613,101

428.9%

3,254,903

4,724,322

45.1%

Income taxes paid

(152,568)

(82,750)

(45.8%)

(629,357)

(385,099)

(38.8%)

Net cash flows provided by operating activities

(947,031)

2,530,351

367.2%

2,625,546

4,339,223

65.3%

Cash flows from investing activities:

Machinery, equipment and improvements to concession assets

(606,257)

(849,081)

40.1%

(1,244,295)

(1,679,015)

34.9%

Cash flows from sales of machinery and equipment

28

2,296

8100.0%

193

2,947

1426.9%

Other investment activities

(40,617)

(27,577)

(32.1%)

(55,001)

(24,372)

(55.7%)

Net cash used by investment activities

(646,847)

(874,362)

35.2%

(1,299,104)

(1,700,441)

30.9%

Cash flows from financing activities:

Capital distribution

-

(2,000,000)

100.0%

-

(2,000,000)

100.0%

Debt securities

4,200,000

4,500,000

7.1%

7,200,000

4,500,000

(37.5%)

Payment from Debt securities

-

-

0.0%

(2,200,000)

-

(100.0%)

Bank loans

-

(2,080,739)

100.0%

-

(5,860,151)

100.0%

Repurchase of shares

-

(872,890)

100.0%

-

(1,211,074)

100.0%

Interest paid

(257,118)

(433,039)

68.4%

(608,416)

(772,236)

26.9%

Bank loans

2,151,264

-

(100.0%)

2,151,264

3,779,413

75.7%

Interest paid on lease

(675)

(438)

(35.1%)

(1,392)

(940)

(32.5%)

Payments of obligations for leasing

(3,163)

(2,985)

(5.6%)

(6,815)

(6,045)

(11.3%)

Net cash flows used in financing activities

6,090,308

(890,091)

(114.6%)

6,534,640

(1,571,033)

(124.0%)

Effects of exchange rate changes on cash held

278,509

8,698

(96.9%)

387,554

(9,311)

(102.4%)

Net increase in cash and cash equivalents

4,774,939

774,596

(83.8%)

8,248,636

1,058,438

(87.2%)

Cash and cash equivalents at beginning of year

10,973,890

14,728,391

34.2%

7,500,193

14,444,549

92.6%

Cash and cash equivalents at the end of year

15,748,829

15,502,987

(1.6%)

15,748,829

15,502,987

(1.6%)


Exhibit D: Consolidated statements of profit or loss and other comprehensive income (in thousands of pesos):

2Q20

2Q21

Change

6M20

6M21

Change

Revenues

Aeronautical services

551,875

3,023,604

447.9%

3,675,657

5,096,371

38.7%

Non-aeronautical services

331,641

911,151

174.7%

1,353,482

1,547,138

14.3%

Improvements to concession assets (IFRIC 12)

601,542

960,983

59.8%

1,424,757

1,890,226

32.7%

Total revenues

1,485,058

4,895,738

229.7%

6,453,897

8,533,734

32.2%

Operating costs

Costs of services:

643,554

695,644

8.1%

1,380,112

1,348,342

(2.3%)

Employee costs

239,260

289,828

21.1%

486,466

533,462

9.7%

Maintenance

97,402

109,037

11.9%

211,805

203,476

(3.9%)

Safety, security & insurance

104,079

124,605

19.7%

229,405

248,431

8.3%

Utilities

79,692

95,591

20.0%

171,319

172,764

0.8%

Other operating expenses

123,121

76,583

(37.8%)

281,117

190,209

(32.3%)

Technical assistance fees

8,777

135,441

1443.1%

141,041

223,798

58.7%

Concession taxes

94,721

303,817

220.7%

538,427

517,657

(3.9%)

Depreciation and amortization

505,174

510,380

1.0%

987,231

1,013,125

2.6%

Cost of improvements to concession assets (IFRIC 12)

601,542

960,983

59.8%

1,424,757

1,890,226

32.7%

Other (income) expense

(58)

2,712

4775.9%

9,022

(637)

(107.1%)

Total operating costs

1,853,710

2,608,977

40.7%

4,480,591

4,992,510

11.4%

(Loss) income from operations

(368,651)

2,286,761

720.3%

1,973,307

3,541,224

79.5%

Financial Result

(311,089)

(406,199)

30.6%

(326,183)

(485,503)

48.8%

Share of loss of associates

(83)

-

100.0%

3

1

66.7%

Income (loss) before income taxes

(679,823)

1,880,562

376.6%

1,647,127

3,055,722

85.5%

Income taxes

97,616

(456,589)

(567.7%)

(421,271)

(594,170)

41.0%

Net (loss) income

(582,207)

1,423,973

344.6%

1,225,856

2,461,552

100.8%

Currency translation effect

(66,233)

(146,953)

121.9%

1,351,131

(85,224)

(106.3%)

Cash flow hedges, net of income tax

(287,997)

23,233

108.1%

(348,105)

240,027

169.0%

Remeasurements of employee benefit – net income tax

(9,558)

735

107.7%

(9,705)

1,837

118.9%

Comprehensive (loss) income

(945,995)

1,300,988

237.5%

2,219,177

2,618,192

18.0%

Non-controlling interest

29,645

13,545

(54.3%)

(164,109)

650

100.4%

Comprehensive (loss) income attributable to controlling interest

(916,350)

1,314,533

243.5%

2,055,068

2,618,842

27.4%

The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).


Exhibit E: Consolidated stockholders’ equity (in thousands of pesos):

Common
Stock

Legal Reseve

Reserve
for Share
Repurchase

Repurchased
Shares

Retained
Earnings

Other
comprehensive
income

Total
controlling
interest

Non-
controlling
interest

Total
Stockholders'
Equity

Balance as of January 1, 2020

6,185,082

1,592,551

3,283,374

(1,733,374)

9,940,035

360,504

19,628,172

1,041,271

20,669,443

Comprehensive income:

Net income

-

-

-

-

1,227,550

-

1,227,550

(1,695)

1,225,855

Foreign currency translation reserve

-

-

-

-

-

1,185,327

1,185,327

165,804

1,351,131

Remeasurements of employee benefit – Net

-

-

-

-

-

(9,705)

(9,705)

-

(9,705)

Reserve for cash flow hedges – Net of income tax

-

-

-

-

-

(348,105)

(348,105)

-

(348,105)

Balance as of June 30, 2020

6,185,082

1,592,551

3,283,374

(1,733,374)

11,167,585

1,188,022

21,683,240

1,205,379

22,888,618

Balance as of January 1, 2021

6,185,082

1,592,551

3,283,374

(1,733,374)

11,908,891

556,287

21,792,811

1,059,972

22,852,783

Reserve for share repurchase

-

-

1,981,292

-

(1,981,292)

-

-

-

-

Capital distribution

(2,000,000)

-

-

-

-

-

(2,000,000)

-

(2,000,000)

Repurchase of share

-

-

-

(1,211,074)

-

-

(1,211,074)

-

(1,211,074)

Comprehensive income:

Net income

-

-

-

-

2,463,307

-

2,463,307

(1,756)

2,461,552

Foreign currency translation reserve

-

-

-

-

-

(86,330)

(86,330)

1,106

(85,224)

Remeasurements of employee benefit – Net

-

-

-

-

-

1,837

1,837

-

1,837

Reserve for cash flow hedges – Net of income tax

-

-

-

-

-

240,027

240,027

-

240,027

Balance as of June 30, 2021

4,185,082

1,592,551

5,264,666

(2,944,448)

12,390,904

711,821

21,200,576

1,059,323

22,259,899

For presentation purposes, the 25.5% stake in Desarrollo de Concesiones Aeroportuarias, S.L. (“DCA”) held by Vantage appears in the Stockholders’ Equity of the Company as a non-controlling interest.

As a part of the adoption of IFRS, the effects of inflation on common stock recognized pursuant to Mexican Financial Reporting Standards (MFRS) through December 31, 2007, were reclassified as retained earnings because accumulated inflation recognized under MFRS is not considered hyperinflationary according to IFRS. For Mexican legal and tax purposes, Grupo Aeroportuario del Pacífico, S.A.B. de C.V., as an individual entity, will continue preparing separate financial information under MFRS. Therefore, for any transaction between the Company and its shareholders related to stockholders’ equity, the Company must take into consideration the accounting balances prepared under MFRS as an individual entity and determine the tax impact under tax laws applicable in Mexico, which requires the use of MFRS. For purposes of reporting to stock exchanges, the consolidated financial statements will continue being prepared in accordance with IFRS, as issued by the IASB.


Exhibit F: Other operating data:

2Q19

2Q21

Change

6M20

6M21

Change

Total passengers

1,666.2

11,040.1

562.6%

13,391.4

18,446.9

37.8%

Total cargo volume (in WLUs)

462.2

688.7

49.0%

1,015.0

1,356.7

33.7%

Total WLUs

2,128.3

11,728.8

451.1%

14,406.4

19,803.5

37.5%

Aeronautical & non aeronautical services per passenger (pesos)

530.3

356.4

(32.8%)

375.6

360.1

(4.1%)

Aeronautical services per WLU (pesos)

259.3

257.8

(0.6%)

255.1

257.3

0.9%

Non aeronautical services per passenger (pesos)

199.0

82.5

(58.5%)

101.1

83.9

(17.0%)

Cost of services per WLU (pesos)

302.4

59.3

(80.4%)

95.8

68.1

(28.9%)

WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo).


Passenger Traffic and Consolidated Results for 2Q21 and 1H21 compared to the same periods of 2019:

Domestic Terminal Passengers – 14 airports (in thousands):

Airport

2Q19

2Q21

Change

6M19

6M21

Change

Guadalajara

2,674.0

2,177.8

(18.6%)

5,094.4

3,751.4

(26.4%)

Tijuana *

1,533.7

1,773.3

15.6%

2,894.9

3,184.1

10.0%

Los Cabos

490.9

520.5

6.0%

885.5

887.4

0.2%

Puerto Vallarta

479.5

453.1

(5.5%)

831.3

753.5

(9.4%)

Guanajuato

532.3

394.9

(25.8%)

994.3

680.9

(31.5%)

Montego Bay

2.4

0.0

(100.0%)

4.2

0.0

(100.0%)

Hermosillo

475.0

360.8

(24.0%)

859.9

618.4

(28.1%)

Mexicali

303.4

273.0

(10.0%)

569.4

463.2

(18.6%)

Morelia

115.7

145.8

26.0%

225.9

255.7

13.2%

La Paz

256.3

228.5

(10.8%)

466.4

397.7

(14.7%)

Aguascalientes

162.3

144.6

(10.9%)

305.2

242.4

(20.6%)

Kingston

0.0

0.7

N/A

0.0

0.7

N/A

Los Mochis

103.3

91.7

(11.3%)

187.1

162.6

(13.1%)

Manzanillo

25.4

23.1

(8.8%)

49.2

40.3

(18.2%)

Total

7,154.1

6,587.9

(7.9%)

13,367.7

11,438.1

(14.4%)

*CBX users are classified as international passengers.

International Terminal Passengers – 14 airports (in thousands):

Airport

2Q19

2Q21

Change

6M19

6M21

Change

Guadalajara

1,088.6

949.3

(12.8%)

2,076.7

1,544.3

(25.6%)

Tijuana *

736.1

737.8

0.2%

1,394.2

1,162.6

(16.6%)

Los Cabos

963.1

983.4

2.1%

2,019.3

1,517.8

(24.8%)

Puerto Vallarta

713.7

575.8

(19.3%)

1,970.6

928.2

(52.9%)

Guanajuato

173.8

163.4

(6.0%)

345.1

248.8

(27.9%)

Montego Bay

1,179.9

656.8

(44.3%)

2,516.2

961.5

(61.8%)

Hermosillo

17.4

25.9

49.1%

34.5

45.8

32.8%

Mexicali

1.9

1.1

(40.7%)

3.3

1.8

(45.5%)

Morelia

105.8

101.8

(3.8%)

207.1

176.9

(14.6%)

La Paz

3.1

4.3

41.2%

6.6

8.3

24.9%

Aguascalientes

54.8

54.6

(0.3%)

99.3

88.6

(10.9%)

Kingston

0.0

183.4

N/A

0.0

298.8

N/A

Los Mochis

1.9

2.4

29.6%

3.5

4.0

13.4%

Manzanillo

15.2

12.1

(20.3%)

52.3

21.5

(59.0%)

Total

5,055.2

4,452.2

(11.9%)

10,728.8

7,008.7

(34.7%)

*CBX users are classified as international passengers.

Total Terminal Passengers – 14 airports (in thousands):

Airport

2Q19

2Q21

Change

6M19

6M21

Change

Guadalajara

3,762.6

3,127.2

(16.9%)

7,171.1

5,295.7

(26.2%)

Tijuana *

2,269.7

2,511.1

10.6%

4,289.1

4,346.6

1.3%

Los Cabos

1,453.9

1,503.9

3.4%

2,904.8

2,405.1

(17.2%)

Puerto Vallarta

1,193.2

1,028.9

(13.8%)

2,801.9

1,681.8

(40.0%)

Guanajuato

706.2

558.3

(20.9%)

1,339.4

929.7

(30.6%)

Montego Bay

1,182.5

656.8

(44.5%)

2,520.4

961.5

(61.9%)

Hermosillo

492.4

386.8

(21.4%)

894.5

664.2

(25.7%)

Mexicali

305.3

274.1

(10.2%)

572.7

465.0

(18.8%)

Morelia

221.5

247.6

11.8%

433.0

432.5

(0.1%)

La Paz

259.4

232.9

(10.2%)

473.0

406.0

(14.2%)

Aguascalientes

217.1

199.3

(8.2%)

404.6

330.9

(18.2%)

Kingston

0.0

184.1

N/A

0.0

299.5

N/A

Los Mochis

105.2

94.1

(10.6%)

190.6

166.6

(12.6%)

Manzanillo

40.5

35.2

(13.1%)

101.5

61.7

(39.2%)

Total

12,209.3

11,040.1

(9.6%)

24,096.5

18,446.9

(23.4%)

*CBX users are classified as international passengers.

CBX Users (thousands)

Table 20

Airport

2Q19

2Q21

Change

6M19

6M21

Change

Tijuana

723.6

731.6

1.1%

1,370.9

1,152.6

(15.9%)

The Company took control of the operation of the Kingston airport on October 10, 2019, consequently no figures are available for comparison purposes from January to June 2019.


Consolidated Results and Other Data for 2Q21 and 1H21 compared with 2019 (in thousands of pesos):

2Q19

2Q21

Change

6M19

6M21

Change

Revenues

Aeronautical services

2,577,773

3,023,604

17.3%

5,209,098

5,096,371

(2.2%)

Non-aeronautical services

957,275

911,151

(4.8%)

1,858,600

1,547,138

(16.8%)

Improvements to concession assets (IFRIC 12)

122,363

960,983

685.4%

268,850

1,890,226

603.1%

Total revenues

3,657,411

4,895,738

33.9%

7,336,548

8,533,734

16.3%

Operating costs

Costs of services

705,304

695,644

(1.4%)

1,300,943

1,348,342

3.6%

Technical assistance fees

113,644

135,441

19.2%

229,218

223,798

(2.4%)

Concession taxes

292,887

303,817

3.7%

618,154

517,657

(16.3%)

Depreciation and amortization

425,839

510,380

19.9%

847,440

1,013,125

19.6%

Cost of improvements to concession assets (IFRIC 12)

122,363

960,983

685.4%

268,850

1,890,226

603.1%

Other (income) expense

(5,025)

2,712

(154.0%)

(8,933)

(637)

(92.9%)

Total operating costs

1,655,012

2,608,977

57.6%

3,255,672

4,992,510

53.3%

Income from operations

2,002,399

2,286,761

14.2%

4,080,877

3,541,224

(13.2%)

Financial Result

(235,745)

(406,199)

72.3%

(318,354)

(485,502)

52.5%

Income taxes

(503,081)

(456,589)

(9.2%)

(1,101,400)

(594,170)

(46.1%)

Net income

1,263,573

1,423,973

12.7%

2,661,123

2,461,552

(7.5%)

Currency translation effect

(45,788)

(146,953)

220.9%

(139,739)

(85,224)

(39.0%)

Cash flow hedges, net of income tax

-

23,233

100.0%

-

240,027

100.0%

Remeasurements of employee benefit – net income tax

(146)

735

(603.4%)

(293)

1,837

(727.0%)

Comprehensive income

1,217,639

1,300,988

6.8%

2,521,091

2,618,192

3.9%

Non-controlling interest

(19,763)

13,545

168.5%

(44,929)

650

101.4%

Comprehensive income attributable to controlling interest

1,197,876

1,314,533

9.7%

2,476,162

2,618,842

5.8%

2Q19

2Q21

Change

6M19

6M21

Change

EBITDA

2,428,238

2,797,141

15.2%

4,928,317

4,554,349

(7.6%)

Comprehensive income

1,217,639

1,300,988

6.8%

2,521,091

2,618,192

3.9%

Comprehensive income per share (pesos)

2.17

2.5018

15.3%

4.4939

5.0347

12.0%

Comprehensive income per ADS (US dollars)

1.13

1.2568

11.2%

2.3395

2.5293

8.1%

Operating income margin

54.7%

46.7%

(14.7%)

55.6%

41.5%

(25.4%)

Operating income margin (excluding IFRIC 12)

56.6%

58.1%

2.6%

57.7%

53.3%

(7.7%)

EBITDA margin

66.4%

57.1%

(13.9%)

67.2%

53.4%

(20.6%)

EBITDA margin (excluding IFRIC 12)

68.8%

71.2%

3.5%

69.7%

68.6%

(1.7%)

Costs of services and improvements / total revenues

22.6%

33.8%

49.5%

21.4%

38.0%

77.4%

Cost of services / total revenues (excluding IFRIC 12)

20.0%

17.7%

(11.4%)

18.4%

20.3%

10.3%


IR Contacts:

Saúl Villarreal, Chief Financial Officer

svillarreal@aeropuertosgap.com.mx

Alejandra Soto, IRO and Corporate Finance Director

asoto@aeropuertosgap.com.mx

Gisela Murillo, Investor Relations

gmurillo@aeropuertosgap.com.mx / +523338801100 ext. 20294


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