Confidential
2020-01-16 15:19:54 +0000
St. Louis, Missouri ST. LOUIS LAMBERT aena STL INTERNATIONAL AIRPORT,. November 26, 2019 1 Introduction Aena·s team for St. Louis Lambert
Confidential
2020-01-16 15:19:54 +0000
2 Agenda
- • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability
Confidential
- • 4. Specific topics of our [email protected] 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A
3 Confidential
2020-01-16 15:19:54 +0000
4 Introduction Madrid Airport Traffic Evolution (Mpax)
+46% -24% 58 52 40
Confidential
2020-01-16 15:19:54 +0000
2007 2013 2018
5 Agenda
- • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability
Confidential
- • 4. Specific topics of our [email protected] 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A
6 Aena’s airport management experience A listed, state-owned company responsible for managing the airport network in Spain ... Shareholder configuration
~ Confidential 0"' 'I [email protected] 2020-01-16 15:19:54 +0000
7 Aena’s airport management experience
UK: • 1 Airport • 16.6 Mpax • Since 2013
Spain: Mexico: • 46 Airports and • 12 Airports Jamaica: 2 Heliports • 40.5 Mpax • 2 Airports • 263.8 Mpax • Since 1999 • 6.5 Mpax Confidential • Since 2015
2020-01-16 15:19:54 +0000 Colombia: • 2 Airports • 10.6 Mpax Brazil: • Since 1997 • 6 Airports • 13 Mpax • Since 2019
8 Aena’s airport management experience Aena's model: Be part of our network
...... Capacity -· Expansion and adjustment of airport infrastructure
0 r\ Quality -· Fulfilment of high levels of quality services
Confidential Network Operation - • Efficiency management in Opex and Cap ex [email protected]
2020-01-16 15:19:54 +0000
Commercial, Cargo & -· Redesign and optimization of the commercial offering Real Estate offering -· Best use of available land to facilitate new developments
- • Economic -competitiveness and efficiency Sustainability - • Environmental- minimizing footprint -· Social- people and community
9 Aena’s airport management experience We understand St. Louis-Lambert objectives and we have experience delivering results
Madrid Airport Improvement of the airport for all stakeholders, including -· Capacity: 70 Mpax 40 • incremental uses of the airport's - • Passenger traffic evolution (Mpax): significant excess capacity 2007 2013 2018
Confidential London Luton Airport - • Concession fees: over $ SOM 1 Net cash proceeds to the city, [email protected] - • upfront and over time for non 2020-01-16 15:19:54 +0000 - • Close work with Luton Borough airport purposes Council on development plan
Seville -· New jobs in hangar Airport - • Prosperity for the region Community and economic • development in the St. Louis Airports • -· Agreements with local schools reg1on . . in Mexico -....:
1. GBP to USD exchange rate: 1.28 (November 22nd 2019) 10 Agenda
- • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability
Confidential
- • 4. Specific topics of our [email protected] 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A
11 Financial capability
71 airports under management 353 Mpax1 in 2018
Cash Flow $B2
Confidential 2018
Market Cap $B [email protected]
2020-01-16 15:19:54 +0000
+190% revaluation since IPO (Feb. 2015) (IBEX35 -12.4%)
12 Financial capability Aena has a unique financial capability
- Creditworthiness ------ - Investment capacity --...... Investment Grade - 2018 1 EBITDA s 3.08
Net debt/EBITDA 2.5x MooDY's A3 with Stable Outlook Sector average 4.4x Confidential
2020-01-16 15:19:54 +0000 A with Stable Outlook Investment Fitch Group capacity s 5.68 o/w readily 1.58 available s
Aena has capacity to finance the transaction through internal resources
1. EUR to USD exchange rate: 1.10 (November zznd 2019) 13 Financial capability Aena has a unique financial capability
Spanish London Luton Brazil infrastructure projects Airport Airports -· Since 2000 -· 2013/14: $0.6B (51% stake) - · Awarded in March 2019
-· $ 12B1 financed for -· 2017 refinancing: - · 6 airports northeast Brazil expansion projects -· Largest UK airport private placements - · $1B investment (50% -· Bank financing with 12 Confidential Capex) -· 14 lenders including 3 US different entities - 88% [email protected] through USPP fixed cost 2020-01-16 15:19:54 +0000 - · Fully financed with equity
-· Diversified financing structure (15 different entities) -· Minimized exposure to financial markets
1. EUR to USD exchange rate: 1.10 (November zznd 2019) 14 Agenda
- • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability
Confidential
- • 4. Specific topics of [email protected] qualifications 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A
15 Specific topics of our qualifications Today, we will answer your specific questions
A. What is the basis for the US hub strategy?
B. How will we leverage our team/capabilities into active management of the airport?
Confidential c. How will we operate in the US? [email protected]
2020-01-16 15:19:54 +0000 D. What is our experience in managing assigned gates?
E. How familiar are we with elements unique to the US (such as PFCs)
16 Specific topics of our qualifications • What is the basis for the US hub strategy? Our vision for St. Louis Lambert is grounded in the Aena model
Aena Saint Louis-Lambert "Be the best airport operator "Connect our region to the world being the best in the world" Midwest hub" m Capacity - • Reach STL's full potential
Quality Confidential- • Provide world class service to passengers
2020-01-16 15:19:54 +0000 Network Operation - • Achieve excellence and synergies in operations
Commercial, Cargo & - • Ensure cash generation to the city Real Estate offering
Sustainability - • Maximize contribution to the community
17 Specific topics of our qualifications
Transformation design
Confidential
2020-01-16 15:19:54 +0000
Operation Transition
18 Specific topics of our qualifications • How will we operate in the US? STL will be our base operation in the US, with select activities supported by the Aena network Aena network operations model ,. Center of ' , Airport-led Corporate Excellence ~, Confidential
[email protected] -· Airport Operations -·2020-01-16 Procurement 15:19:54 +0000 -· Finance/Treasury Examples of network -· Governmental Affairs/ -· Route Development -· Investor Relations cooperation Community Relations -· Innovation
19 Specific topics of our qualifications . What is our experience in managing assigned gates? ✓ Coordinated locally with airlines ~--- Assigned gates ----...... -. Common use -· Gate allocation agreed with airlines -· Airlines pay only for actual use -· Higher visibility for the airlines -· Optimized capacity due to higher -· Ease of use for frequent flyers flexibility
Confidential -· More efficient operations
2020-01-16 15:19:54 +0000
20 Specific topics of our qualifications
✓ ✓
Confidential
2020-01-16 15:19:54 +0000
21 Specific topics of our qualifications . How familiar are we with elements unique to the US? We have experience working with TSA, CBP and FAA
-· Extensive cooperation, including the opening of a TSA ✓ technical office in Madrid -· Madrid Barajas Airport has been qualified as a potential CBP pre-clearance airport ✓ • CBX experience in Tijuana Airport
Confidential Federal Aviation Administration -· [email protected] cooperation in major international organizations ✓ 2020-01-16 15:19:54 +0000 International Standards -· Spain: AESA (Spanish Air Safety Agency), complying with ICAO standards ICAO -· UK: CAA (Civil Aviation Authority) ✓ -· Colombia: Airports certified by ICAO standards -· Mexico: General Directorate of Civil Aeronautics
22 Specific topics of our qualifications
✓
Confidential
[email protected] 2020-01-16 15:19:54 +0000 ✓ ✓
23 Agenda
- • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability
Confidential
- • 4. Specific topics of our [email protected] 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A
24 How our team is structured to drive value at St. Louis Our team is structured to bring value to STL along all key operational dimensions
Emilio Rotondo Finance -----+----- Legal & Compliance Maria de los Reyes Escrig
International Aeronautical Non-aeronautical development operations businesses
••••••••••••••••• ··················~ lnaki Ascacfbar Prospection Centers of Excellence Confidential and Bidding Airports Irene Yoldi [email protected]
• 2020-01-16 15:19:54 +0000 • 1------1 Operations ···· : ············································································•~-- Operations .....______...... • I ' • l-1 • • Rafael Fernandez 1------1 Infrastructures Infrastructures ····=• ············································································•!-- • • • 1------1 Airlines ···· = ············································································•~ Airlines • 1----- Commercial • • Ignacio Biosca : • • • • ...... ~ ...... • L______JI Non Aviation • 1----- Real Estate • ~- •••••••••••••••••••••••••••••••••• 1 Belen ~- Cargo The centers of excellence: leverage experience, capabilities and Landfnez resources to optimize airports in the international network 25 How our team is structured to drive value at St. Louis . Aena generates value in operations through our Network
Opex _. Leverage network model to obtain maximum efficiency
Aena's Safety,Confidential Security _. Safety and Security first and Quality Network model [email protected] with maximum quality 2020-01-16 15:19:54 +0000
Management of macro and Cap ex - • micro programs, with long and-short term balance
26 How our team is structured to drive value at St. Louis . Our network allows us to manage Opex with high efficiency
Benchmark of operating costs 1 ($/pax) 18.7 Extensive benchmarking 14.9 13.9 over own network 12.7 European ...... J ...... 11.3 ...... 11.4 average
········································ ································ ...... 9.0 WorldConfidential 6.1 average [email protected] Best practice sharing 2020-01-16 15:19:54 +0000
I I I I I I I Heathrow ADP Zurich Schiphol Fraport Aena Group Leverage of local labor Aena pax Aena Opex and business markets growth growth (CAGR14_19E) (CAGR 14_19E)
1. Operating costs defined as the combination of staff and non-staff operating costs, with depreciation omitted. EUR to USD exchange rate: 1.10 (November 22nd 2019) Source: Airport Performance Indicators 2018 by Leigh-Fisher with da 2016 27 How our team is structured to drive value at St. Louis • Efficient Capex planning and management, balancing both the long and short term
Experience and success ... and extensive managing large Capex maintenance Capex projects ... projects
On time, within budget, and without disruptions Confidential
[email protected] -· Lighting improvements 2020-01-16 15:19:54 +0000 • • -· Restrooms refurbishment $ Bl $ B invested -· VIP lounges invested in in Barcelona
Madrid Airport -· Ill Airport
1. EUR to USD exchange rate: 1.10 (November zznd 2019) 28 How our team is structured to drive value at St. Louis . Safety & Security first with maximum Quality
Safety & Highest security performance
- • Our airports are certified according - • Efficient use of slots via A- COM to strict international regulations - • Events with high traffic peaks
------,------Confidential
Maximum 2020-01-16 15:19:54 +0000 Innovation quality - powerhouse - • Quality awards - • Biometric boarding received in the last - • Remote tower
Embarca mas rlipldo three years en el aeJOpue rto AIRPORTS COUNCIL de Menorca INTERNATIONAL - • Wayfinding app
Proyecto piloto de - • loT for maintenance reconoclmiento facial
29 How our team is structured to drive value at St. Louis
Confidential
2020-01-16 15:19:54 +0000
1
30 How our team is structured to drive value at St. Louis . ... in all types of airports
Madrid Palma de Mallorca Hub Barcelona Tourist lbiza Guadalajara Baja California Sur
Confidential
2020-01-16 15:19:54 +0000
Sevilla Guanajuato Cargo Zaragoza Regional Bilbao Recife Vito ria Valencia
31 How our team is structured to drive value at St. Louis • We proactively develop traffic at our airports Personalized business cases
The indirect market between Spain and China is still very significant Passenger Profile AGP- NYC """""aena Direct and Indirect traffic by year
• P••Oir« < • P•• ln
The break-even point of a potential route could be reached with Skyscanner: Searches and redirects 650$/one way
( One Way 4 weekly frequencies Aircraft: 6787-8 228 Seat4 • :!? Me norca ~ 42.5K 2.487 "" e e e e e e e e e e e e I •••••••••••• C. ~ Mu n1ch '>P,'lr~-- w-~ ReCirects 80% 0 0% lOAD FACTOR TOTAl PROFIT PROFIT MARGIN "" 37,939 650.17 Sky>eann er market purchase (rourt d trip) "" PASSENGER MARKH SIZE R£\f[NLJ£ f>ER PASSENGER
0.0479 0.0479 0.0268 • ::::mverson rJte ""'""' c"'" Sky $2 19 $260 5.9% REVENUE PER ASK COST PER ASK CASKEXCLFUEL • ....,"""'_"""''""•" . ,... ,,,., . ... ,m'"'"''""" - ·"H""'''"""''0....,oo - V>
613.21 111 ,649.66 23,264,729.85
6,741 .45 1.402.221 .99
~EW.a 000 000 0 .00 #f1F Souroo: own fioLn> b•sec or ra~ :leta fr:lrn Sk;scaroe· T"""l ~•io11 Routes to new Transfer passengers Discounts based destinations and on growth growth, Confidential 2020-01-16 15:19:54 +0000 T London Luton Airport [ pa~ell!I'E!!rs 7 SIK discount Cl) ..... 'unt PaJSSe nee r ZSIK dlsoomrt [21 33 How our team is structured to drive value at St. Louis MAD Air Route Development Committee Confidential 2020-01-16 15:19:54 +0000 34 How our team is structured to drive value at St. Louis • Airlines are clients whose needs we strive to fulfill -· Surveys of airline satisfaction -· Working groups with the airlines on a wide range of issues Confidential [email protected] 0 0 . 2020-01-16 15:19:54 +0000 >> 35 How our team is structured to drive value at St. Louis • We will work closely with the airlines operating at St. Louis Lambert AmericanAirlines tt... . ~ . DELTA{~ Confidential 2020-01-16 15:19:54 +0000 United~~~~ FRONTIER AIRLINES Airlines ® … 36 How our team is structured to drive value at St. Louis x2 1.3 8% Confidential 1 9% $B Revenues Profitability [email protected] 13% 2020-01-16 15:19:54 +0000 0.7 12% 11% 11% 16% 15% Aena total Aena total 15% revenues profit 12% 27% 18% 2011 2018 37 How our team is structured to drive value at St. Louis • We maximize the potential of our commercial areas through six key levers Confidential 2020-01-16 15:19:54 +0000 Marketing Drivers Brands Innovation (partners) Own business 38 How our team is structured to drive value at St. Louis $221M $117M $361M Confidential Operators FOREX [email protected] $168M 2020-01-16 15:19:54 +0000 $36M $138M M sq ft. $160M $70M $74M 39 How our team is structured to drive value at St. Louis • Key Real Estate figures today 7 H sq ft Confidential • Loading bays [email protected] 2020-01-16 15:19:544.1 +0000 H sq ft 2.7 H sq ft Service stations 25 5 40 How our team is structured to drive value at St. Louis . Real Estate Plan for tomorrow MADRID AIRPORT BARCELONA AIRPORT Confidential 2020-01-16 15:19:54 +0000 • I • % $81 Acres of Acres of $81 Acres of Acres of Investment commercial green areas Investment mixed-use environmentally land land protected land 1. EUR to USD exchange rate: 1.10 (November zznd 2019). Developments to be financed by PPP with external partners 41 How our team is structured to drive value at St. Louis . Cargo infrastructure is the cornerstone of our real estate development tons of cargo managed ,...... ---Madrid Airport-...... ~-Zaragoza Airport------. ~-Vito ria Airport-...... _ Confidential 2020-01-16 15:19:54 +0000 - ·----~------··------· -- --~ - --- 1.1 635 166,000 62,000 $81 Acres Tons of cargo ZARA Tons of cargo Investment dedicated to managed managed cargo 1. EUR to USD exchange rate: 1.10 (November zznd 2019) 42 Agenda - • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability Confidential - • 4. Specific topics of our [email protected] 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A 43 How our team is organized to be successful in STL process Our core team will be complemented by partners and advisors with deep experience in the different engagement areas ~-- Our core experts team --...... _. - How we will be fully engaged -----.. - - - - Leadership & Finance ,.../ Airlines & Government • International ~ Coordination lfl ~ Affairs Development W Ignacio Biosca Emilio Rotondo Airport Operations -.s:z.T - • Working Teams in full collaboration: lfiaki Ascacibar Rafael Fernandez Legal& ~ Compliance ~ Elena Mayoral - • Offer leadership from Aena Commercial, Real Estate W & Community Development Irene Yoldi Confidential International Maria de los Reyes Escrig [email protected] - • Regular working groups Advisory team 2020-01-16 15:19:54 +0000 - • Collaboration with partners and Aena external stakeholders n - • Regular Leadership meetings ··~.~ STL Advisors Partners 44 How our team is organized to be successful in STL process U.S.: UK: • 1 Airport • 1 Airport • 15.2 Mpax • 16.6 Mpax • Since 2013 Mexico: Spain: • • 12 Airports Jamaica: 46 Airports and 2 Heliports • 40.5 Mpax • 2 Airports Confidential• 263.8 Mpax • Since 1999 • 6.5 Mpax • Since 2015 [email protected] 2020-01-16 15:19:54 +0000 Colombia: • 2 Airports • 10.6 Mpax Brazil: • Since 1996 • 6 Airports • 13 Mpax • From Jan 2020 45 How our team is organized to be successful in STL process In summary, Aena is the best partner to help St. Louis reach its vision and objectives City of St. Louis's objectives Aena's capabilities and experience - • Improvement of the airport for all stakeholders, including Transformative model incremental uses of the airport's significant excess capacity Confidential - • Net cash proceeds to the City, [email protected] up front and/or over time for 2020-01-16 15:19:54Strong +0000 track record non-airport purposes - • Community and economic development in the St. Louis Commitment reg1on• 46 Agenda - • 1. Introduction - • 2. Aena's airport management experience - • 3. Financial capability Confidential - • 4. Specific topics of our [email protected] 2020-01-16 15:19:54 +0000 - • 5. How our team is structured to drive value at St. Louis - • 6. How our team is organized to be successful in STL process -• 7. Q&A 47 Q&A Q&A - Aena's team for Saint Louis Lambert Leadership & Finance Airlines & Government International Coordination Affairs Development Ignacio Biosca Emilio Rotondo ConfidentialAirport Operations lnaki [email protected] Ascacfbar Rafael Fernandez Legal & 2020-01-16 15:19:54 +0000 Compliance Elena Mayoral Commercial, Real Estate & Community Development Irene Yoldi Marfa de los Reyes Escrig Belen Landfnez 48 Disclaimer AENA S.M.E., SA (AENA) is the exclusive owner of this document No part of this document may be reproduced (including photocopying), stored, duplicated, copied, distributed or introduced into a retrieval system of any nature or transmitted in any form or by any means without the prior written permission of AENA. This document does not constitute an offer or invitation to purchase or subscribe shares, pursuant to the provisions of the Law 24/1988 of the 28th of july of the Securities Market and its implementing regulations. In addition, this document does not constitute an offer to purchase, sell, or exchange, neither a request for an offer of purchase, sale or exchange of securities in any other jurisdiction. This document contains statements that AENA believes constitute forward-looking estimates which may include statements regarding the intent, belief, or current expectations of AENA and its management, including statements with respect to trends affecting AENA's financial condition, financial ratios, operating results, business, strategy, geographic concentration, costs, investments and dividend pay-out policies. Confidential These forward-looking statements may also include assumptions regarding future economic and other conditions, such as GOP evolution, passenger traffic estimates and exchange rates and are generally identified by the words "expects", "anticipates", "forecasts", "believes", estimates", "notices" and similar expressions. These statements are not guarantees of [email protected] performance and are subject to material risks, uncertainties, changes and other factors which may be beyond AENA's control or may be difficult to2020-01-16 predict 15:19:54 Among +0000 such risks and uncertainties are those factors and circumstances identified in the IPO Prospectus registered by Aena in the National Securities Market Commission in Spain. In consideration of the foregoing, the estimates or projections included in this document could not be fulfilled. Except to the extent required by the applicable law, AENA does not assume any obligation (even when new data is published or new facts are produced) of publicly reporting any update of revision of these estimates/statements in the future. The information contained in this document has not been verified or reviewed by the Auditors of AENA. 49