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.