Grupo Aeroportuario del Sureste, S. A. B. de C. V.

Good day, ladies and gentlemen, and welcome to SOAR's fourth quarter 2023 results conference call. My name is Doug, and I'll be your operator. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of today's conference. If you'd like to ask a question, please press star 1. If you'd like to withdraw your question at any time, please press star 2. If you are using a speakerphone, please lift the handset before making a selection. As a reminder, today's call is being recorded. Now I'd like to turn the call over to Mr. Adolfo Castro, Chief Executive Officer. Please go ahead, sir.

Thank you, Doug. And good morning, everyone. Before I begin... Discussing our results, let me remind you that certain statements made during this call may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to several risks and uncertainties that would cause actual results to differ materially, including factors that may be beyond our company's control. As usual, additional details about our quarterly results can be found in our press release, which was issued yesterday after markets closed. and is available on our website Investor Relations Sector. Following my presentation, I will be available for Q&A. Before getting into discussion of the quarterly results, let me start today's call with a recap of recent developments. A significant milestone for the quarter was the December 2023 approval of the 2024-2028 Mass Development Plan for our Mexican efforts. This approval occurred under the government's new regulations and increase of the concession fee to 9% from the 5% of total gross revenues starting from January 3rd of this year. Some key highlights of the new NBP include the efficiency factor used to analyze the maximum tax increase from 0.7 to 0.8 in the prior NBP. The methodology to calculate the discount rate is now based on weighted average cost per capita compared to cost of equity before. The new MDP 2024-2028 also calls for a total capex commitment of $28.5 billion measured in December 2022 terms for the five-year period. Of these five-year capex, 75% equivalent to 21 billion pesos, or approximately $1.4 billion, will be invested at Kenton Airport, 70% of which will be allocated to expansion works. Key projects include the second phase of expansion of the International Terminal 4, which includes additional four boarding gates that have been delayed due to the pandemic. and new roads connecting the terminals to the Niger train. We also plan to rebuild and expand Terminal 1, as well to expand airport roads. These investments support a new growth phase for Cancun in the years ahead. The remaining 25% will be allocated across our eight smaller airports in Mexico, with approximately 7% allocated to Oaxaca, where we plan to reconstruct dropped and expanded terminal building. Finally, minor terminal expansions at four of the other airports. For 2024, we plan to invest a total of 3.5 billion pesos, 73% of which will be invested in Cancun. Also note that the new MVP revalues the impact of the recent opening of the Tulum airport. We ended the year with a 98.2% maximum tax compliance, PASSENGER FEE DISCOUNT GRANTED DURING NOVEMBER AND DECEMBER AS A RESULT OF THE AGREEMENT REACHED WITH THE MEXICAN GOVERNMENT. DURING THE QUARTER, WE CONCLUDE NEGOTIATIONS WITH OUR STRATEGIC PARTNER, ITA, BY TWITCH. STARTING JANUARY 2024, THE TECHNICAL ASSISTANCE FEES HAVE BEEN REDUCED TO 2.5% FROM 5% OF THE EVDA GENERATED BY MEXICAN OPERATIONS. On December 21st of last year, the Supreme Court of Justice rejected the appeal filed by the Aeropuerto Internacional Bávaro against judgment that suspended the permit to start construction previously issued by the Civil Aviation Institute. More recently, on January the 5th, the President of the Dominican Republic issued a decree canceling the previous decree issued by the previous president, which had approved the establishment of Bávaro International Airport. On January 19th, an appeal for constitutional review was brought before the Constitutional Court against the Supreme Court of Justice, notified on December last year. On the Sustainability Front, during the fourth quarter, we completed the installation of solar panels in the airports of Tapachula and Baturco. will generate a combined output of 1.5 million kilowatt hours in the first year of operation. These, in addition to the solar panel projects already completed in the airports of Cancun, Merida, and Oaxaca, will generate a total of nearly 632,000 kilowatt hours of solar energy during the fourth quarter. As part of our continued sustainability efforts, our airports in Mexico renewed their certification at level two under the Airport Carbon Accreditation Program. This program is organized by the Airport Council International to provide a framework for measuring, reducing, and compensating carbon emissions. Also in the fourth quarter, we became signatories of the Science-Based Targets Initiative with the goal of establishing a roadmap to achieve zero emissions by 2050. Among the community projects ASUR is involved in, we provided support to promote ecological tourism activities in the Himalayan speaking rural communities in the northern region of the state of Yucatán. Locals are provided with training and equipment to supplement their income from traditional fishing activities. By close of 2023, 49 years starts with approximately 100 economic dependents. We're provided with training and we intend to scale up these activities to additional communities in 2024. We plan to publish our 2023 annual sustainability report next month and encourage you to read it. Let's review our source operation and financial performance for the quarter. As usual, all comparison discussed will be .

Mr. Castro, are you there? One moment, ladies and gentlemen. It appears that we have lost Mr. Castro. I'm going to try and reconnect. Rejoining Adolfo Castro.