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

Good day, ladies and gentlemen, and welcome to ASUR's first quarter 2026 results conference call. My name is Sachi, and I'll be your operator. At this time, all participants are in listen-only mode. We will conduct a question-and-answer session toward the end of today's teleconference. 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, Mr. David Barlow, Corporate Governance, Strategic Planning Manager and IRO at ASUR. Please go ahead, sir.

Thank you, Sachi, and thank you, everyone, for joining us today to discuss ASUR's results for the first quarter 2026. With me on today's call is Adolfo Castro, Chief Executive Officer. Additional details about our results can be found in our first release, which was issued yesterday after market calls. and is available on our website. As usual, all comparisons discussed on this call will be year-on-year, and all figures are expected in Mexican pesos unless specified otherwise. As a reminder, certain statements made during the call today may constitute forward-looking statements which are based on current management expectations and beliefs and are subject to several risks and uncertainties that could cause actual results to differ materially. including factors that may be beyond our company's control. Please refer to the forward-looking statements disclosure included in this earnings presentation for additional information. With that, I will now turn the call to Adolfo. Please go ahead, Adolfo.

Thank you, David, and good morning, everyone. Before I begin, I would like to note that David Barlow has assumed a responsibility for investor relations. that David has been with Azure for more than 20 years and knows the company and operations very well. He attends our Board of Directors meeting and committee sessions. Now, let me start by bringing the quarter. We started the first quarter We were operating in an environment where the traffic trends on our Mexican market were stabilizing after a period of normalization. Puerto Rico entering a more mature phase following strong post-pandemic growth, and Colombia in a growth with momentum. Recall that the first quarter of Mexico is the seasonal peak at the strongest. then, we were negatively affected by the security-related events beginning on February 22nd, and after that, by the TSA-related disruptions in the U.S. airports, which also impacted Puerto Rico. This effect contributed to increased volatility in traffic trends, particularly toward the end of the quarter. On the positive side, we've made progress on two key priorities. The first one, integration of ASUS U.S. airports. This makes the first full work of consolidation of our U.S. commercial platform. The business contributed to non-aerobic and revenues while profitability reflects the early land park operations. We expect travel improvement as the platform scales, supported by the new commercial openings in Terminal 8 and the upcoming opening of the Terminal 1 this year, both at GEA which will further expand the commercial base. Second, continued execution of our regional expansion strategy. We remain focused on completing the Motiva transaction which is now pending remaining regulatory approvals and is expected to close in the second quarter this year. diversification, expanding our presence in new markets, and further balancing our portfolio. Our strategy remains consistent, diversifying our revenue base, including a greater focus on non-regulated revenue, selecting expanding into markets with attractive long-term demand, and deploying capital in a disciplined and value-attractive manner. Let me now review Azur's operational performance for the quarter. Total passenger traffic increased 1.9% year-to-year, reaching nearly 90 million passengers, driven by strong traffic in Colombia, stabilization in Mexico, and short-term softness in Puerto Rico. Colombia remains our fastest-growing market with traffic off. Mexico remained broadly stable, with international traffic showing modest growth, while domestic traffic remained slightly below prior year's levels. Trafficking then declined 2% during the quarter, while the other ATEM was in Mexico, grew by 5%. Positive trends in January and February were offset by weaker March. Beginning on February 22nd, traffic was affected by the security-related events in Mexico, which impacted traffic to and from the United States through mid-March. Later that month, traffic was affected by a TSA-related screening disruptions in the U.S. airports. We believe these factors were temporary and do not reflect a change in the underlying demand. As we move through the year, we expect to see difficult operating conditions, including higher fuel prices and recent capacity reductions. Passage volumes from the United States, our largest international source market, decreased 4.6%, while South America contracted 1.4%. On the positive note, Canada and Europe increased by 11% and 11.4% respectively. In Puerto Rico, traffic trends driven primarily by domestic demand and the effects of DSA when international traffic continued to grow. Turning now to financial performance. As a reminder, all figures that exclude construction revenue and cost and comparison are year-on-year, otherwise otherwise noted. Total revenues increased to 0.2% year-on-year firmly driven by an early mindset increasing non-aeronautical revenues, supported by the first full consolidation of the U.S. airports, which added approximately 138 million pesos in non-aeronautical revenue during the quarter. In turn, aeronautical revenues declined low single digits, mainly reflecting the FX conversion impacts in Puerto Rico and Colombia, together with the lower traffic in Puerto Rico. Commercial revenues increased nearly 7%, primarily reflecting the new commercial operations in the U.S. and the able single-digit organic road in Colombia. Performance in Mexico and Puerto Rico remained soft within the quarter, reflecting a combination of FX headwinds, even the strength of the Mexican peso against the U.S. dollar, combined with low traffic in Puerto Rico. We continue to execute of a revenue base, with a growing contribution from non-regulated and donor-denominated sources. The integration of the U.S. commercial platform is an important step in that direction, and while still in its early stages, it already represents an attractive addition to our portfolio. Over the past year, we also continue to actively expand our commercial footprint across the network. On a per-passage basis, commercial revenue increased mid-season digits to 153.6 pesos, benefited from a full quarter of operations from the U.S. commercial operations. Despite the impact of depreciation of the Mexican and Colombian pesos against the U.S. dollar and a mixed traffic environment, by geography, Puerto Rico delivered the highest levels with the passenger, despite the 5% decline in 3.5% tax conversion and the slight reduction in traffic levels. Mexico's 0.4% decline mainly reflected the impact on the Tesla precision of the US dollar, denominated commercial roads. Lastly, Colombia posted a mid-season decline despite the strong traffic flow, reflecting effects and mixed effects Turning to operation costs, total expenses increased 25% year-on-year, mainly driven by the integration of U.S. commercial operations, higher depreciation, and amortization in Colombia, professional fees related to the U.S. acquisition, together with the ongoing inflationary pressures. Excluding these effects, underlying operating costs was moderate. By region, Mexico recorded a 6% increase in expenses. If clearing production would be associated with a U.S. commercial acquisition, expenses would have grown just 0.9%, mainly reflecting modest increases in labor and service-related costs. In Puerto Rico, expenses declined nearly 7%, benefiting from depreciation on the Mexican peso against the U.S. dollar. Expenses in Colombia increased 33%, largely driven by the higher depreciation and amortization change in amortization methodology. Recall this change reflects the expected evolution of the consortium, including the phase-out of regulated revenues starting in 2007 and the remaining life of the asset through 2032. Excluding depreciation and amortization, expenses in Colombia will have increased by just 2.6%. In the U.S., we recorded lease-related adjustments, account reconciliation items, provisions for uncollectible accounts, and prior year employees bonus. Moving on to profitability, consolidated EBITDA decreased nearly 6% to $5.4 billion in the quarter. EBITDA was lower across regions, down mid-single digits in Mexico and Colombia, high single digits in Puerto Rico, while our U.S. commercial operation costing a negative UDA of 50 million pesos in the quarter. The adjusted UDA margin declined nearly 600 basis points to 64.1% the other year, mainly reflecting the ramp-up of the U.S. increased interest expenses following the recent financings, and a lower interest income. Importantly, the reported profitability of Arcturus USA for this quarter is not yet indicative of the underlying earnings capacity of the business and costs associated to sell out the business. As disclosed in our 20-hour report on a performance base, billion in revenues and $711 million in net income in the fiscal year 2025. In addition, the launch of the new Terminal 1 at GMA Airport, expected to come online during the third quarter this year, will further support commercial revenue growth as it ramps up, further enhancing the performance of this business. Moving into the balance sheet, we close the quarter with cash Our partnership continues to prove significant flexibility to firm growth while maintaining conservative leverage. Capital expenditures total $544 million, primarily focused on Mexico, where our investments under the Mass Development Program continue to advance, including the construction of terminal 1 in Cuy, on track to open on the third quarter this year, which will enhance capacity, improve passenger flow, and optimize commercial working hard for the full year as per our mass development plan, total 7.9 billion pesos. In Puerto Rico, we remain focused on operational improvements and while capital deployment in Colombia . At the end of March, airplane sign an agreement authorizing immediate interventions at Jose Maria Cordoba Airport. To address unexpected events, with an estimated investment of approximately 165 billion Colombian pesos, the project covers a series of capacity expansions, a service-level improvement works, including domestic and international checking facilities, a reporting baggage handling system, security checkpoints, remote boarding areas, In summary, ASTRO is becoming a more diversified platform with increasing exposure to U.S. denominated revenues. A clear visibility on key road drivers, including the ramp-up of U.S. commercial operations and expected closing of motivator sections. While in the near-term, traffic trends remain mixed across regions, County underlying the land for air travel and we may focus on execution. Cost discipline and long-term value creation. The final comment is that a social service meeting will take place at 10 a.m. Mexico City time today with the proposed dividend payment of 10 pesos per share to be paid at the end of May. Now, I will open the floor for questions. Sashi, please open the floor.

Thank you. We will now begin the question and answer session. To ask a question, dial in by phone and press star and then one 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, press star then two. Please limit yourself to one question and one follow-up. Join the queue again if you have additional questions. At this time, we will pause momentarily to assemble our roster. The first question is from Rodolfo Ramos from Vardesco BVI. Please go ahead.

Thank you, Rodolfo, and congratulations on your new responsibilities, all the success there. I have a couple of questions. The first one is in regards with your U.S. commercial business. I'm assuming there is some level of seasonality. can you give us a sense of how much should Azure US should be contributing in EBITDA on a 12-month rolling basis, you know, considering the new commercial space in JFK, and if you expect any material extraordinary expenses in the coming quarter as you close the Motiva acquisition? So that would be my first one. And the second one on traffic, and let me perhaps take a little bit of a different approach here. I mean, the Cancun-Mexico route has been an important bottleneck for you guys. I mean, do you see a scenario where we could see a short-term pressure during the World Cup as, you know, Guadalajara-Monterrey routes are prioritized? Thank you.

Thanks, Monique. In the case of the U.S., it's important to say that the point of vision we have is not exactly what we will have, what we expect to have at the end of this year. Just to say, on the 21st of April, new openings took place at Jonathan Kennedy Terminal 8, and we are expecting the opening of new Terminal 1 end of this year. New Terminal today is a project that is under construction. It is a new terminal, so it's not in operation. So even though, even if I tell you that a number would not mean anything to give some Basically, I would say the EVA this year should be close to, let's say, $20 million that we will be basically investing or reinvesting in the projects we have. In the case of the traffic in Cancun, yes, we are right. Mexico City Airport is or has been a bottleneck for a while. If they are going to relocate some traffic, because of the work that I don't think so. Remember that the work at the end of the day in Mexico is just 30 days. They're the most important ones here in Mexico City, and probably there's one that is particularly important in the case of Guadalajara. Apart from that, nothing else. On the other side, I have to say that Cancun Airport is probably the only one in the world that has to the 16 values of the word, if that is a different story for some of the people that lives outside Mexico. Thank you.

The next question is from J.P. Morgan. Please go ahead.

Good morning. Thanks for taking my question. A follow-up on perfect performance. You mentioned that the trend is kind of mixed in the near term. If you can help us try to understand what to expect, especially in Mexico. I know there's a lot of moving parts, but it looks like some of the negative impacts of the first quarter seem to be fading away. So is it fair to assume some kind of increase in traffic on a year-over-year basis going forward? And the second one is a follow-up from the Motivas Airport. You can share what kind of synergies or upside on the commercial front you expect to get once you integrate this business into a source platform. Thank you.

Yes, of course. Well, in the case of traffic, I have to say that in the case of Mexico traffic, and particularly in the case of the most important source of traffic, for the first quarter, which is the U.S. Everything went well up to February 22nd, and then basically collapsed. That collapsed up to March 14th, that we were back on track again, and then the PSA thing appeared. So I have to say that the quarter was severely affected by these two things. Going forward, The only thing I can say is Holy Week is in a different date as it was last year. So probably the beginning of April is something that we can see on the positive side, no? On the other side, I'm saying that we will be facing difficult operational conditions going forward, and we don't know how much. the oil price of 100 tons per barrel is not . We have received some capacity from the spirit, so far the only one. But we don't know how much this is going to last soon. It is not an easy moment to be saying how the year is going to end up. In terms of . The word synergy is not probably the right one. They have a business that is operating well. We have some common customers. Yes, it's true. The large ones, you know, they are also in the U.S. But I don't see synergy as an important

Got it. Thanks, Adolfo. Have a nice day.

The next question is from Anton Montencotter from GDM. Please go ahead.

Hi, Adolfo and David. Thank you for the call, guys. Just two quick ones. One is related to the investments in Colombia. I was wondering if this investment will trigger any amendment to concession or any or any kind of compensation on that front. And the second one is related to the maximum tariff. Just wondering if due to the lower depreciation, maybe there are some places where you are still slightly below the maximum tariff that we should see some adjustments going forward, or if you could give us some color on that one. Thank you.

Absolutely. In the case of Colombia, I'm not sure anything we signed an amendment to our concession agreement. That was the . The content of this document is that once again we are able to invest in this country, not for the moment as an emergency plan for the case of . And this will include But for the moment, what this document allows is to invest 165 billion pesos, Colombian pesos. And of course, that will be moving the day when our regular revenues will pay down. So, so far, we were expecting that to happen on February 27th. with this investment that we are making. All the calculations with the current conditions probably will be up to the end of 2017. But again, this will give us the opportunity, this is giving us the opportunity to invest more and to solve some issues that we have there. So we will keep you posted on how these things evolve in the future. But for the moment, this is very good news in the case of Colombia. In our maximum time, The objective we have over here is 98%. And for the moment, we do not see why we should not be reaching the 98%.

Thank you. You're welcome.

The next question is from Alberto Valerio from UBS. Please go ahead.

Good morning, I know for welcome that is successful on the new vote. And I go for a follow up on the maximum tariffs and also on the expenses for this quarter. Remind us how is the methodology for maximum tariffs from the NDP on the international flight? if you can adjust later, because that's appreciated or not. And also, if you could tell us from the list that you paid, this quarter, if there is any one of those that is not recurring. We saw 90 million in the Mexican network, and as well, 120 for the U.S. operations. Thank you very much.

Yes, Alberto. In the case of maximum tax, renewable maximum tax, that we can charge in a year. So, when you're saying the mass of traffic, that is part of the maximum time. So, if peso of the system is the dollar, dollar is the peso, we will have to just, in accordance, to try to reach the amount in pesos, no? So, there's no different treatment for dinosaur flights versus domestic flights. It's one basket, and it's peso denominator. In the case of the one-time events, yes, you're right, 91 million is what we have paid as a professional piece to get the U.S. acquisition. And also I have mentioned that in the case of the U.S., we have the good things that were related to last year, so one-time events as well of approximately 70 million.

Again, if you have a question, please press star, then 1. The next question is from Gabriel from Scotiabank. Please go ahead.

Hi. Good morning. Thanks for the call. Just a quick question. Have you seen any shifts on traffic or seats or capacity from airlines? from both perhaps U.S. and domestic airlines, and what would be, like, the outlook or the drivers for the traffic ahead? Thank you.

Good morning. Well, the only shift that we have seen or we have been informed is what I just mentioned. It's the case of the Spirit. The Spirit has decreased its capacity. That's the only one we have so far, and as I said before, it's difficult times with the level of the fuel prices we have today, and the uncertainty that we have about the situation in the Middle East, you know, and look at the situation in the Middle East so quickly. just affects, let's say, the end of April and some pieces of May, you know, and that's it. But, of course, it's difficult for me to say when it is going

okay thank you and if i may another question and perhaps in the terms of commercial revenues um what is like the trend on the passenger profiles they're like lower standards around terminals lower uh lower time on the terminals or what's driving the the the trends on the commercial revenues well let me let me say let me start with Puerto Rico because

And let's say in the third week of March, the PSA lines over the weekend reach four and a half hours, plus one hour more for the case of the aviculture filter. So you have to be there more than six hours before your flight, no? a lot of flights have to be rescheduled, et cetera, et cetera. But we have seen, let's say, low-spending people with similar effects that have been affecting the situation. The effects that I have mentioned during my call, during my initial remarks, remember last year, the cash flow versus dollar was 20-something, and today it's 17-something.

Okay, thank you very much.

The next question is from Andres Cardona from Citigroup. Please go ahead.

David, I have one question about the UBA contribution of the U.S. business. You can share how much you expect on an annual basis from there. Thank you.

repeat your question again. How much?

How much will be a contribution respect on the U.S. business on a manual basis?

For the moment, what I was saying is this year, so far, $30 million in ETA. Of course, next year should be more as a result of the opening of the new terminal one. Thank you.

The next question is from Francisco Suarez from Scotiabank. Please go ahead.

Hey, thanks for the call, David. Congrats on the new appointments. The question that I have also with the U.S. operations, it is about excluding Terminal 1. What would be the overall occupancy rates that you see over there? And also in a related question, what is the overall outlook, again excluding Terminal 1, on potential increases in the overall leases that you may see there and your overall strategy to manage those assets?

Well, randomness, I would say, Francisco, we have more than 400 contracts there, so 400 units. If you see some of them in the case of LEDX are empty, but that doesn't mean that those does not have a contract. Some of them are empty because they are in the process of being remodeled or in the process of new spaces. So basically I would say we have all or almost all the spaces contracted.

Okay. And also, if you can discuss a little bit about your overall average life on those leases and what would be the potential to see further increases in rents. Do you have any idea of how likely it is to see an improvement on rents once the leases are

It was an average life, basically, I would say between 15 to 17 years. Okay. I would invite you to see some news related to Terminal 8, Attorney Patrick Kennedy, and you can see the spaces that were opened recently, you know. Those spaces were empty for a long time. Those were in a severe remodeling process, you know. But now we have finished that piece. We are focused now on two major projects. One is, of course, the new terminal one. And the other one we have is a new agreement that we reached with LAX at last year. where we will be preparing the terminals for the Olympic Symphony, you know. Some places are going to be remodeled for the Super Bowl. That is going to the first quarter next year. But the most important event, of course, is the Olympic Symphony.

Great, great color, and thanks for the tip. So, in other words, I think that the overall tenant improvements and all these investments and the remodulation are linked towards better rents because you will be recovering those investments, isn't it? Absolutely. Ah, fantastic. Thank you so much for the color.

You're welcome. Again, if you have a question, please press star then 1. We will pause momentarily to assemble our roster. This concludes the question and answer session of today's conference call. I would like to turn it back over to Mr. Castro for closing remarks.

Thanks, David, and thanks, Sashi. Ladies and gentlemen, that concludes ASUS first quarter 2016 results conference call. We would like to thank you again for your participation. Now you may disconnect.

Ladies and gentlemen, that concludes ASUR's first quarter 2026 results conference call. We would like to thank you again for your participation.

You may now disconnect.