Grupo Aeroportuario del Centro Norte S.A.B. de C.V.

Greetings and welcome to the OMA third quarter conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Emmanuel Camacho, Investor Relations. Thank you. You may begin.

Thank you, Doug. Hello, everyone, and welcome to OMA's third quarter 2023 earnings conference call. Participating today are CEO Ricardo Duenas and CFO Rufo Perez-Pierro. Please be reminded that certain statements made during the course of our discussion today may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to a number of recent uncertainties that could cause actual results to differ materially, including factors that may be beyond our control. With that, I will turn the call over to Ricardo Venas for his opening remarks.

Thank you, Emmanuel. Good morning, everyone. We appreciate your presence on this call today. I will begin by discussing the impact that Hurricane Otis had in our Acapulco airport, and then we'll comment on recent developments in the regulatory landscape of our airport concessions. Afterward, we will move on to our quarterly results. On the night of October 25, Hurricane Otis struck Acapulco City with Category 5 intensity. The hurricane caused some damage to the terminal building of the Acapulco Airport. However, the airport remains operational and is currently focused on humanitarian operations. We are working closely with local and federal authorities to fully restore the regular operations of the airport, which we expect to be relatively soon. In 2022, Acapulco contributed with 3.6% of our total passenger traffic and 3.4% of OMA's total aeronautical and non-aeronautical revenues. Regarding recent regulatory changes, on October 4, 2023, the Civil Aviation Agency, an autonomous body under Ministry of Communication and Transportation, notified us about immediate modification established in Annex 7 of the tariff regulation basis of our airport concessions. Over the two weeks that followed, we conducted a thorough review of these new guidelines and engaged in closed and constructive communication with the ministry and the AFAC to clarify certain points. During these interactions, the Mexican government was open to dialogue, leading to agreements finally reflected in the modified basis that we received on October 19th. and subsequently made public to the market. We don't expect significant impact from this. Another matter that I would like to mention concerns the concession tax. On October 25, the Senate approved the new 2025 federal duties law. This law includes provisions to increase the concession tax from 5 to 9% based on airport revenues effective January 24th. It is worth mentioning that under new tariff regulation, the increase in the concession tax affecting the 24 and 25 period will be recognized in the next tariff negotiation of 26 to 30 period through the reference value. It is also essential to understand that the concession tax is part of the calculation variables for determining maximum tariff. This new basis did not change as relative to the original basis. After all these events, we anticipate that OMA will uphold its commitment to adaptability, resilience, and the sustained and successful track record of its financial and operational results. Turning to our main third quarter of this year results, OMA continued to deliver solid financial and operating results during the third quarter. Adjusted EBITDA grew 33% in the quarter to 2.5 billion pesos, and adjusted EBITDA margin reached 79.4%, largely as a result of the increase in both aeronautical and non-aeronautical revenues on our successful cost control strategy. In the third quarter, almost passenger traffic reached a record number of 7.4 million, an increase of 19% versus the third quarter of last year. Outstanding results were guided by the performance in Monterey, which accounted for 62% of all mass total passenger growth as compared to the third quarter of last year. The main destinations of road traffic growth were to Toluca, Queretaro, Cancun, Santa Lucia, and Mexico City. Most of them considered business routes. On aggregate, these five routes added 255,000 additional passengers in the quarter, an increase of 17% versus the third quarter of last year. Primarily, as a result of the storm passenger traffic performance, our aeronautical revenue grew by 31% in the quarter to 2.5 billion pesos. On the commercial front, revenues increased 24% compared to third quarter of last year, driven by restaurants, parking, car rentals, and VIP lounges. Occupancy rate for commercial space stood at 94.7% at the end of the quarter. Diversification revenues increased 8%. Our hotel services contributed most to this growth. In the second quarter of this year, occupancy rate at our Terminal 2 NH was 86.3%, while the Hilton Garden Inn Hotel had an occupancy rate of 73.3%. On the capital expenditures front, total investment in the quarter, including MDP investments, major maintenance, and strategic investments, were 964 million pesos. During the quarter, some of the most relevant projects we are working on are the expansion and remodeling of the Monterey Airport Terminal, A building, as well as Ciudad Juarez, Torreon, Culiacan, and Durango Terminal buildings. Reconfiguration of the Mazatlan Terminal building. Major rehabilitation and reconfiguration of platforms and taxiways in several airports. and construction of four industrial warehouses. I would now like to turn the call over to Rufo Perez-Pierro, who will discuss our financial highlights of the quarter.