Grupo Aeroportuario del Centro Norte SAB de CV Q1 FY2024 earnings call

• Passenger traffic: Total down 1.5% y-o-y; international up 10% driven by expanded capacity. Excluding Acapulco, other airports had positive growth. - Financial highlights: Aeronautical revenues up 5.3%, commercial up 12%, diversification up 21%, cargo up 2%. - Capital expenditures: Total investments of Ps.1.1 billion, with projects like Monterey airport terminal expansion and others. - Upcoming event: Tomorrow's 2024 annual shareholders meeting with vote on Ps. 4.25 billion cash dividend.

In the first quarter, OMA's passenger traffic was 5.9 million, a 1.5% decrease vs last year. Excluding Acapulco, other 12 airports had a 0.9% aggregate increase. Domestic traffic declined 1.2% due to lower seat capacity, while international traffic rose 10% with 7.1% growth in international seat capacity. Aeronautical revenues increased 5.3%, with aeronautical revenue per passenger up 7%. Commercial revenues grew 12%, led by car rentals (+25.4%), restaurants (+18.6%), and parking (+8.3%). Diversification revenues (hotel services) increased 21%, with Terminal 2NH occupancy at 89% and Hilton Garden Inn at 77%. Cargo increased 2%. Adjusted EBITDA was Ps.2 billion, up 3%, with a margin of 74.6%. Excluding concession tax surplus, adjusted EBITDA would be Ps.2.127 billion with a margin of 77.7%.

• Traffic outlook: Monitoring traffic closely, expecting mid-to-low negative single digit for 2024 depending on Pratt & Whitney engine issue. - Acapulco recovery: Operating at 50% of pre-Hurricane Otis capacity, recovery pace dependent on city recovery.

• Pratt & Whitney engine issues affecting Volaris' traffic. - Impact of Mexico City airport slot reductions on traffic network. - Uncertain accounting treatment of concession tax and its impact on profitability.

Q: Regarding traffic outlook, is the flattish traffic performance expectation still valid given aircraft groundings and Acapulco recovery?

A: Monitoring traffic closely, expecting mid-to-low negative single digit for 2024; Acapulco operating at 50% of pre-Otis capacity, recovery dependent on city.

Q: On national tour and non-aeronautical revenue per passenger, insights on strategies and future performance?

A: Aeronautical yield affected by basis of comparison; working with VINCI on commercial initiatives, expecting strong non-aeronautical performance to continue.

Q: On technical assistance expense, will levels continue?

A: Technical assistance fee is 3% of EBITDA from airport concessions, no modification expected.

Q: Impact of Mexico City slot reductions and Monterrey airport?

A: Traffic will shift to other airports, network development key; no official update on Monterrey military airport project.

Q: MVP negotiation and margin outlook?

A: Early stage of MDP, working on traffic and CapEx projections; expect margins around 72%-74%.

Q: Concession fee accounting and offsetting mechanisms?

A: Still assessing accounting treatments; cash flow benefit in next tariff negotiation, using cost control measures.