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

Good morning, everyone, and welcome to GAP's fourth quarter 2025 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'd like to ask a question. Now, it's my pleasure to turn the call over to GAP's investor relations team. Please go ahead.

Thank you, and welcome to GAP's conference call. I'd like to take a few moments to review the forward-looking statements as described in the financial disclosure statement. Please be advised that statements made today may not account for future economic circumstances, industry conditions, the company's future performance, or financial results. As such, any information discussed is based on several assumptions and factors that could change, causing actual results to materially differ from current expectations. For the complete note on forward-looking statements, please refer to the quarterly report. Thank you for your attention. It is my great pleasure to introduce Mr. Raul Revuelta, GAAP Chief Executive Officer, and Mr. Saul Villarreal, Chief Financial Officer. The gentleman will be our speaker today. At this time, I will turn the call over to Mr. Revuelta for his opening remarks.

Thank you, Maria. Good morning, everyone, and thank you for your time here today. I'm pleased to share with you the company's operational and financial highlights for the fourth quarter of 2025, which concludes a solid year despite the several external challenges that I will discuss today. I will begin with the quarterly passenger traffic and then move on the financial results, followed by a brief review of the full year. Passenger traffic decreased 0.9% during the fourth quarter compared to the same period of 2024. This performance stems from the two clearly separated dynamics within our portfolio. The first, in Mexico traffic trends remain relatively stable, despite varying performance across the different airports. While passengers growth was 2.9% revenue was totally supported by the implementation of the new maximum tariff approved and applied in 2025, as well as expansion of the routes in select markets. Secondly, as you are aware, Hurricane Melissa struck Jamaica in October 28th, leading to the temporary suspension of operations at Montego Bay, as well as Kingston Airport. This resulted in a traffic decrease of nearly 35% during the quarry. Although there was no material damage to either airports, passenger traffic did significantly decline in November and December, mainly in Montego Bay. The main factor was the hurricane impact of the surrounding area as well as the hotel infrastructure with around 70% of the total capacity affected. On a positive note, the recovery of total capacity as well as tourist infrastructure across the region has been better than expected. While the actual timing of a full normalization remains unclear, the Minister of Tourism has indicated that hotel capacity is expected to return to 100% by the upcoming 2026 winter season. we remain confident in the long-term fundamentals of the Jamaica market and its overall structural growth potential. Now moving on to the revenues, combined aeronautical and non-aeronautical service revenues include by 12.8%, reflecting the sustained structural strength of our business model. Aeronautical revenues grew by 12.6%, primarily driven by the aforementioned maximum terms that were approved and applied during 2025 in Mexico, as well as the continuous expansion of our routes. No aeronautical revenues increased by 13.3%, quarter over quarter. In Mexico particularly, commercial revenues were strong, mainly supported by the performance of the cargo and bound warehouse business, and the opening and renegotiation of commercial spaces under improved market conditions. The most dynamic segments include food and beverage, retail, run transportation, and leasing activities. EBITDA increased by 7.5%, reaching 5.1 billion pesos. EBITDA margin, excluding Africa 12, stood at 63.8%, a decrease compared to the 4.25%, as a result of the higher concession fees in Mexico, additional headcount, and increasing maintenance costs. due to the new operations of the jet bridges and air buses. A path that must now be operated directly by GAP, but was previously managed by the third party. In addition, this includes the impact of lower traffic and therefore lower revenues in Jamaica in the aftermath of the Hurricane Melissa. Net income declined compared to the fourth quarter before. mainly due to a higher financial expense and decreasing the interest income due to a lower cash average balance. The effects affect as well as the lower interest rate. This is in addition to the provision of the deferred taxes adjustment in the aggregate balance of the year. Now let us review the full year performance. 2025 was a year of strong structural growth for GAAP. Aeronautical revenue grew by 19.4%, driven mainly by the new tariff applied during 2025, and a 3.7% increase in passenger traffic in Mexico. New aeronautical revenue increased by 26.5% for the year. Further, underscoring the strategic importance of our commercial platform. New aeronautical revenue per passenger increased to 152 pesos in 2025, compared to the 123 We threatened improved commercial execution, pricing optimization, and a stronger contribution from cargo and modern warehouse approach. The consolidation of the business has become a meaningful contributor to our revenue diversification strategy and strengthens the long-term sustainability of our income streams. 21.3 billion pesos with an evident margin excluding IFRIC 12 of 65.6%. Despite higher concessions fee and a cost pressure, profitability remains solid and operational will remain disciplined. From a balance sheet perspective, as of December 31 of 2025, we close the deal with 10.5 billion pesos in cash and cash equivalents. During the year, we strengthen our capital structure throughout the issuance of bond certificates while reducing certain bank loan pressures, maintaining flexibility to fund our long-term commitments. In terms of CAPEX, throughout 2025, we invest 12.4 billion pesos. This was comprised by the first year of execution under the 2025-2029 Master Development Program. capex in our Jamaican airports, and the commercial investments. The capex for the five-year period in Mexico will be focused on major terminal expansion and capacity enhancements, positioning us strongly for the future passenger growth and expanded commercial opportunities. Additionally, in December, at the extraordinary shareholders meeting, the business combination between CVX and terminal assistance agreement was approved. This strategic transaction will allow us to further integrate and strengthen the cross-border express platform, enhancing operational efficiency, expanding services capabilities, and reinforcing our position in the cross-border passenger segment. The transaction is currently in the formalization process, and we expect it to contribute positively to GAAP's long-term value creation. Strategy. Let me touch on international expansion opportunities. The process was ultimately canceled by the government. And as has been our track record, we remain disciplined in our capital allocation decisions and in our remaining focus on projects that meet our strategic and financial return criteria. Therefore, we continue evaluating growth opportunities that complement our existing portfolio strengths over our shareholders' body. Before I continue with the presentation, I want to address the recent events concerning to the state of Jalisco, namely Guadalajara and Puerto Vallarta. Certain incidents were reported throughout different locations of the state of Jalisco on February 22. And I just want to affirm that gas facilities, the Guadalajara and Puerto Vallarta airport, remain fully operational all weekend and up until this moment. As many of you may be aware, The terminals are under protection of the Mexican National Guard, as well as the Minister of National Defense, as part of the permanent coordination and security measures with the federal authorities. From an operational standpoint, we experienced flight cancellations, including 171 flights in Guadalajara and 134 flights in Puerto Vallarta during February 22 and 23. However, yesterday, February 24th, we only had four cancellations in Puerto Vallarta and 11 in Guadalajara. And today, all the operations are back to normal. Thus, it has been a steady and consistent improvement from the weekend as we work to regain normally after the events of the last weekend. The rest of our airport portfolio continue to operate without disruption at this stage. We don't anticipate any additional impact. We are monitoring the situation and will update the market as necessary. Back to the results and outlook. I would like to continue with our discussion on guidance, which does not include the CVX business combination and the technical assistance agreement implementation, which will remain the formalization process. Once the final timing of the consolidation is confirmed, we will update you on the results. That being said, We expect 2026 to be another year of moderate growth, supported by the established structural drivers across our portfolio. Passengers traffic is expected to grow between 2% and 5%, reflecting the consolidation of routes developed to date, estimated load factors, and the potential of increasing frequencies and ship capacity across our network. On the revenue side, agronautical revenues are projected to increase between 9% and 12%, driven by the implementation of current maximum tariffs in Mexico and Kingston Airport in Jamaica, combined with traffic performance, inflation assumptions, and projected exchange rates. Non-agronautical revenues are expected to continue expanding from 6% to 9%, driven by improved contract solution and traffic growth. As a result, total revenues are expected to grow between 8% and 11% year over year. We expect EBITDA to grow between 8% to 11% while EBITDA margins will remain solid at approximately 65% plus or minus 1%, reflecting continued operation discipline while maintaining flexibility to absorb external volatility. Looking ahead, we remain confident in our strategic direction. as we focus on our four growth pillars. Strengthening connectivity, expanding commercial revenues, discipline execution of our infrastructure program, and maintaining long-term leverage strategy. While external factors such as exchange rate volatility, natural events, and global uncertainty may generate temporary fluctuations, CAP diversified airport portfolios strong domestic demand base, disciplined capital structure, position us so we need to continue generating sustainable long-term value. We appreciate your continued trust and support in GATT. Thank you for joining us today, and we now open the floor to your questions.

Thank you, Raul. If you'd like to ask a question over the phone, please press star 1 at this moment. You may remove yourself from the queue at any time by pressing pound 1. And as a reminder, participants joining via webcast may submit questions at any time using the Q&A function. Again, everyone, to ask a question on the phone, press star 1. And we'll pause briefly to form the queue. All right. Our first question comes from Gabriel Inosbar of Scotiabank.

Hi. Good morning. Just can you give a bit of color on Guadalajara and Puerto Vallarta, any cancellations seen? or any lower bookings. And my second question goes for, is there a, can you give us a bit of color on, do you think you might be expanding your footprint on the U.S. besides the CDX? Thank you.

Thank you, Robert. In the case of Gran Vallarta, as we noted, I mean, where we saw on the Sunday, an important number of cancellations, more than 100 in both airports. For the Monday, we began to see an important recovery. Just yesterday, we only had four cancellations in Puerto Vallarta and 11 in Guadalajara. And today, we are expecting that all the operations are back to normal. So what we are seeing for sure has a, I mean, a major impact on Sunday, but after that, the services from the airlines have rather the normalization process. Saying that, we are expecting that there will not be any additional impact for our airports in the coming days. The big number of the impact of these two days, almost three days of impact, we are forecasting that, or we are seeing that the possible impact was around 50,000 passengers in these both airports. Jumping to the second question, the footprint in the U.S. besides the CDX. For sure, in the land with our discipline for capital allocation, we will continue to look in for other opportunities. And for sure, with the platform of the CDX in the U.S., it opens the possibilities for new investments in the U.S. We will still be looking for opportunities that be a generous value to our shareholders and be completely accurate for the company. But yes, it will open the opportunity for additional or review additional products in the U.S.

Okay, thank you. And I'm expecting the coming month a decrease in traffic on Guadalajara and Puerto Vallarta from international passengers.

I mean, we are expecting that the trends that we have seen in the last months continue. For the case of Guadalajara, as you know, we have a positive number with all the openings of new goods from Canadian markets, mainly, and also a recovery from the classic BFR markets of Guadalajara, Los Angeles, and South California in general terms. But also, in the coming months, we will have the first two matches for the last elimination of teams for the World Cup. So, yeah, we are expecting some additional passengers for sure in the coming months. And, I mean, in general terms, connecting with these teams terrible news of the weekend, we are not expecting any further impact on the traffic.

Okay, thank you very much.

Our next question comes from Enrique Cantu of GBM.

Hi, thank you for taking my question. So regarding the pending tariff adjustments, Could you provide more detail on expected timing and visibility around their implementation?

Yes. I mean, just going back on last year, as you remember, in March of the last year, we increased 15% of general passengers being all of our airports. In September 1st, we had another 7.5%. And in January, on January 1st, we increased in general terms around five to 6% depending on the airport. For all of that, we are seeing that the maximum price of the year, for sure, depending on the effects of the present dollar, We are going around 95% of fulfillment. And in the summer, we will have two additional increases for 202 airports, Vallarta and Couch. With all this put in place, we think that we will achieve the 95% of fulfillment on time. Okay, perfect. Thank you very much.

We will now move to questions submitted through the webcast platform, and I'll turn the call over to Alejandra Soto, Investor Relations Officer, to read the questions. Please go ahead.

Thank you. We have one question from Andres Abaroto from UBS, and he's asking, regarding your guidance, can you break down traffic increase expectations for Mexico and Jamaica, and how you are seeing the recovery from the hurricane Elisa in Jamaica and the World Cup impacts in Mexico? Also, well, and the other question was already explained.

In terms of traffic, we are seeing in our guidance an increase on traffic that goes from 2 to 5%. In general terms, what we are seeing to Jamaica is we are seeing as continuous recovery on the hotel capacity for Montego Bay mainly. What we are seeing is for the end of the year could be around minus two to zero percent on increase of passengers. What is important to have in mind is that The two main peaks of the terminal of Montego Bay, or the two moments of increase of passengers, is the spring season and the winter season. On this spring season, I would say that there will be a large and important impact on the number of available hotel rooms in Jamaica, so we will expect that in this in this spring winter, spring season, the decrease of passengers continue, but for the winter season, that is the second big high season for Montego Bay, we are expecting a full recovery of the total capacity of hotels on the island. With that in mind, we are expecting that, minus two to zero percent on Jamaica.

Thank you. It is the only question on the webcast, so I will turn the call again to the question to the floor.

Thank you. And we do have a question from Julia Orsi of J.P. Morgan.

Yes. Hello, everyone. Good morning. So just a question on capital allocation. So now that the Turks and Caicos process is pretty much over, can you comment a bit on what's the priority on the capital allocation side? And that's it.

Thank you, Julia. I would say that in the first half of the year, we will be focused on what means CVX and bringing all the efficiencies to our company. That would be, I think, one of the biggest new projects bringing to the company. But parallel to that, we are working in other projects and looking for other projects that could be interest for us. we will continue reviewing opportunities on the cargo facility business. But I would say with the discipline that is like the part of the DNA of the company, we will continue only on projects that are completely upgraded for our company. With that in mind, we will as always continue reviewing different projects. But for the moment, the only, The only focus that we will have to bring additional value is all the process to bring CBX and the synergies of CBX to the company.

Thank you. Just a follow-up on the CBX. What is the expected timeline for the deal to be fully integrated into GAAP? Do you have any updates on the expected synergies throughout the year? How much should we capture this year?

Yes, I mean, in general terms, what we are talking about the formalization process, we are in the middle of that. We are expecting that in the second quarter of the year, we could fully consolidate all the transactions. In terms of the efficiency, it will be gradually on the year. I will say that if we begin with the consolidation of the second quarter, for this work where we could show important efficiencies on the CVS consolidation process. I would say that the full program, the full program of what we think that could be the synergies of the company, we're gonna fully, looking fully implemented for the half of the year of 2017. I mean, our first view of what we think that will happen on all these projects of CDX.

Got it. Thank you.

There are no further questions at this time. I will turn the call back over to Mr. for closing remarks.

Thank you once again for joining us today. Please contact our investor relations team with an additional question you may have. Have a great day, and thank you for your attention.

That concludes our meeting today. You may now disconnect.