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

Good day, ladies and gentlemen, and welcome to ABSORB's third quarter 2025 results conference call. My name is LaTanya, 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 would like to ask a question, please press star 1. If you want 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, Natalia, and good morning, everyone. Before I begin discussing our results, let me remind you that certain statements made during the call today may constitute forward-looking statements, which are based on current management and are subject to several risks and uncertainties that would cause adverse results to differ materially, including factors that may be beyond our company's control. Additional details about our third quarter 2025 results can be found in our prejudice, which was issued yesterday after market close, and is available on our website in the debtor relations section. Following my presentation, I will be available for Q&A. As usual, all comparisons discussed on this call will be year-on-year, and figures are expressed in Mexican pesos, unless specified otherwise. Before discussing our results, I would like to begin today's call with an important strategic development. As recently announced, for an enterprise value of $295 million. This transaction marks a significant step forward in Azur's international expansion strategy. Building our established presence in the U.S., which began with the operation of San Juan Puerto Rico Airport in 2013, URW Airports UIW airports manage commercial programs at three of the terminals, at three of the airports in the United States. Los Angeles International Airport with six terminals, Chicago-Hare International Airport at Terminal 1, and the case of John F. Kennedy International Airport covering Terminals 8 and the upcoming new Terminal 1. Together, these terminals process around 40 million employment channels This acquisition provides us with a strategic foothold in the three of the largest U.S. air travel markets and strengthens our position in the high growth, non-regulated commercial segment in the U.S. airport industry. The acquisition will be financed by JPMorgan Chase. As with all our strategic positions, with a financial discipline and operational vigor that has long defined ASUS execution. Closing is expected during the second half of the 2025. Subject to customary regulatory approvals, we look forward to keeping you updated on our progress in the quarters ahead. Now turning to our third quarter performance. we served over 17 million passengers across our airports, with traffic remaining practically flat as continued growth in Colombia and Puerto Rico, helping to offset persistent headwinds in Mexico. Starting with Colombia, passenger traffic rose 3% to close to 5 million, supported by a solid 11% increase in international traffic and a modest growth, just under 1% in domestic public In Puerto Rico, total traffic was up 1%, reaching over 3 million passengers. Growth was prevented by international passengers, which increased nearly 12% year-on-year, offsetting the 0.5% decrease in domestic traffic. In Mexico, traffic declined 1%, to nearly 10 million passengers for the quarter. The decrease reflects software demands domestic traffic, which was down nearly 2%, and international, which saw a slight contraction of 0.3%. Passenger volumes from the United States, our largest international source market, decreased just 0.2%, while South America contracted 7.2%. On the positive note, Canada and Europe increased 9.3% and 1.3%, respectively. Looking ahead, we anticipate a more balanced operating environment across our portfolio. In Mexico, we expect traffic to gradually stabilize over the next year as air traffic ability improves. In Puerto Rico and Colombia, we expect continued positive momentum supported by the Health International of the Land and improving connectivity. Now turning to review our collection results, As a reminder, all figures exclude construction revenues and cost, unless otherwise noted. Comparisons are all year-on-year, unless otherwise noted. Total revenues increase in the middle single digits, reaching over 7 billion pesos, driven by global Puerto Rico and Colombia. Mexico, at 72% of total revenues, posted a slight low single-digit decline. without aeronautical revenues practically flat or non-aeronautical revenues down in the middle single digits. Revenue growth was limited by softer passenger volumes and a stronger vessel, which continues to wait on the U.S.-linked revenue streams. Puerto Rico, at nearly 18% of total revenues, reported revenue growth in the high single digits percent in non-aeronautical revenues. This performance reflects positive passenger traffic trends and sustained the matter across commercial activities. Colombia, which accounted for 12% of the total revenues, delivered revenue growth in the high single digits, reflecting a mid-single digit increase in aeronautical revenues, while non-aeronautical revenues were partially offset by the strong Mexican peso. Continuing our ongoing focus on commercial development, we are employing five new commercial stations across our airports over the last 12 months, including 31 in Colombia, eight in Puerto Rico, and six in Mexico. We supported a low single-digit increase in commercial revenues, a solid growth in Puerto Rico, and Colombia was felt partially upset by a weaker performance in Mexico. On a per-passager basis, commercial revenue rose 1 percent to 126 pesos. By region, Colombia left a 14 percent increase, followed by Puerto Rico up 10 percent, while Mexico posted a 4 percent decline, reaching 144 pesos per passenger. by region Mexico posted a 4% increase, largely due to higher maximum minimum wages and service costs. Puerto Rico reported expense increase of nearly 8%, reflecting inflationary pressures and higher operating revenues. While Colombia cost increases 76% would have been 5.4%. Lastly, in Puerto Rico and Colombia, costs benefited from the decision on Mexican pesos against the U.S. dollar. On the profitability front, consolidated MDA declined just over 1% year-on-year to 4.6 billion pesos in the quarter. Puerto Rico and Colombia delivered MDA growth of nearly 5% reflecting lower traffic and higher operating costs. Tetra Stabilia margin, which excludes construction-related revenues and costs under IFRIC 12, declined by 157 basis points to 66.7%. This reflects lower margin contribution from the Mexican and Puerto Rican operation, where the margin contracted 150 price. On our bottom line, this quarter was negatively impacted by the acquisition of the Mexican peso against the U.S. dollar, which resulted in a foreign exchange loss of nearly 1 billion pesos compared to the reverse effect during the third quarter of last year. Profitability was also affected by the 333 million pesos adjustment in the concerted amortization method I just explained. Now, moving toward balance sheet, we close the quarter with a solid cash position of 63 billion pesos, down 19% from December 31st, 2024, primarily reflecting dividend payments major in the period. Our net debt from written items. Note that in November we will be trading an additional dividend of 15 pesos per share. Lastly, we invest close to 1.9 billion pesos in the quarter, currently directed to projects In closing, our third quarter is offered by the resilience of multi-country traffic and the value of our discipline execution amid a more temperate demand environment. While traffic in Mexico continues to face near-term half-wheels, we are encouraged by the ongoing momentum in Thank you.

We will now begin the question and answer session. To ask a question, dial in by phone and press the star then 1 on your telephone keypad. Make sure your mute function is turned off. And if you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press the star, then two. At this time, we will pause momentarily to assemble our roster. One moment. The first question comes from Adolfo Ramos with Bradesco BBI. Please proceed.