Grupo Aeroportuario Del Pacifico, S.A. B. de C.V.

Good morning, and welcome to GAP's conference call. All lines have been placed on mute to prevent any background noise. After the presentation, we will open the floor for questions, and at that time, instructions will be given if you would like to ask a question. It is now my pleasure to turn the call over to GAP's Investor Relations team. Please go ahead.

Thank you, and welcome to the Grupo Aeroportuario del Pacifico's first quarter 2025 conference call. Presenting from the company today, we welcome Mr. Raul Revuelta, GAAP's Chief Executive Officer, and Mr. Saúl Villarreal, Chief Financial Officer. Please be advised that forward-looking statements may be made during this conference call. These do not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, statements made are based on several assumptions and factors that could change. causing actual results to materially differ from the current expectations. For a complete note on forward-looking statements, please refer to the quarterly report issued previously. At this point, I'd like to turn the call over to Mr. Rewelta for his opening remarks. Please begin, sir.

Thank you, Maria. Good morning, everyone, and thank you for joining our first QUARTER 2025 results call. Let me start with highlighting our financial performance. Despite a challenging macroeconomic and travel demand environment, we delivered a strong first quarter with solid growth across all key financial and operational indicators. Total revenue grew by 26% year-over-year, reaching 8.4 billion pesos, driven by a 20.9% increase in agricultural revenues and 41.3% growth in non-agricultural revenues. This was due to several positive factors that includes higher passenger traffic, the benefit of the new maximum tariff implement on March 1st due to the last MDP revision, the peso depreciation of around 20% and incremental revenues from new commercial spaces, which include the mixed-use building that includes the hotel and the consolidation of the cargo facilities mainly in the Guadalajara airport. On the profitability front, EDIDA increased by 21% reaching 5.6 billion patients with an EBITDA margin of 67.1%. Margin is slightly contracted compared to the first quarter of 24, mainly due to recognition in the P&L of increasing the concession fee from 5% to 9% in our Mexican airports. Although this change was enacted in January 24, it is important to recall that under the new tariff regulation, Any payment to the government exceeding those including the last tariff review will be added to the reference value for the next maximum tariff review. As such, the initial 4% of environmental revenue paid to the government during fiscal year of 2024 was recognized as an intangible asset under the IAS 38 with amortization beginning in January 2025 and continued through the end of the concession period. The related payments were included in the reference value for the determination of the maximum value of 2025-2029. This square marks the first time the full 9% concession fee has been recognized in the P&L. It's also important to highlight that the entry of the new commercial business improves our results but causes a slight resolution on the dividend margins. The reason is that While these business lines significantly contribute to the top line of EBITDA in nominal terms, the output margin levels are lower than those of the core airport operations. For example, JWTC and the new hotel operate with an EBITDA margin of around 50%, which, although healthy, is below our historical EBITDA margin profile. As we continue diversifying our revenue streams, We remain focused on balancing growth with profitability across all sectors. From a financial standpoint, the company remains strong. As of March 31, we have 16.2 billion pesos in cash, following a successful 6 billion pesos bond issuance. We also extend and refinance key credit lines in Mexico and Jamaica, providing financial flexibility to support upcoming investments. Following these figures, We maintain healthy leverage levels, reaching a net debt-to-earnings ratio of 1.7 times for the 12 months, thus complying with all our debt covenants. Moving on to the capital you will acquire, GATA executes approximately 1.7 billion pesos in capital expenditures. Just as a reminder, for the full year, the plan is to deploy around 13 billion pesos, which includes 8.8 billion in community investment across our Mexican airports under the master development program. And in addition to that figure, we have continued the construction of the new Puerto Vallarta terminal, which alone represents about 1.7 billion pesos, plus 1.35 billion of investment in our Jamaican airports and about 1 billion pesos dedicated to commercial development. These investments are central to our strategy of enhancing infrastructure, expanding our commercial footprint, and strengthening the overall passenger experience, along with key pillars for supporting our long-term growth. Let's now turn to the macroeconomics environment. We believe that for GAAP, the risk of a U.S. recession, migration, directives, and the possible tariff impact remain key concerns. We are also closely monitoring the potential effects of passenger traffic, particularly in the discretionary and leisure sectors. And we'll keep the market positive going forward. It is important to note that the Holy Week fell in April this year compared to March last year. So these months do not compare exactly with the last year. We will need a bit more time to fully assess the underlying trend for the leisure destination figures. That said, the data appears consistent with a broader economic slowdown in the United States, which quickly may manifest throughout reduced leisure travel and tourist spending. This is nothing that we have not seen before, and we are actively monitoring these changes so that we may adjust our assumptions accordingly. Very interestingly, we have looked at Canadian travelers and their travel tendencies. Many Canadians are seeking new places to travel instead of the U.S., which could represent an opportunity to attract additional flights from Canada to our airports. I mention this because we believe that these disruptions represent a strategic opportunity for Mexico. As Canadian travelers distance themselves from the U.S. destinations such as Florida and California, For example, they might likely redirect their vacation plans toward Mexican beaches and the Caribbean, whereby the airlines would be inclined to rebalance their network. Most likely, GAP's leisure airports of Puerto Vallarta, Los Cabos, and Montevideo could be well-positioned to benefit from this plan. Expanding connectivity is an opportunity that we are focused on. This year, GAP plans to announce 15 new domestic routes and 19 international routes. further strengthening our network, and these are a key critical advantage in today's landscape. Before I conclude, I'd like to highlight that our ordinary shareholders meeting took place last week, during which a dividend payment of 16.84 pesos per outstanding share was approved. The dividend will be distributed over the course of the year, reflecting our continued commitment to delivering value to our shareholders. Thank you, and we are now happy to open it four questions.