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

Good morning, everyone, and welcome to GAP's first quarter 2026 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. 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 first quarter 2026 conference call. Prior to introducing GAP's management team, I'd like to take a few moments to mention the forward-looking statement as described in the financial disclosure statement. Please be advised that any 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 a complete note on forward-looking statements, please refer to the quarterly report issued on Monday. Thank you for your attention. Our speakers today from GAAP are Mr. Raul Revuelta, Chief Executive Officer, and Mr. Saúl Villarreal, Chief Financial Officer. At this time, I'll turn the call over to Mr. Revuelta for his opening remarks.

Thank you, Maria. Good morning, everyone, and thank you for joining us today. FTC reports that GAAP delivered a solid start to the year on results, as I discussed the company operational and financial highlights for the first quarter of 2026. Despite the challenging traffic environment, our performance remains strong, supported by the resilience of our analytical revenues, as well as the continued growth of the new analytical piece, which helped us to offset the more complex traffic environment. Let me begin by discussing passenger traffic. Total passenger traffic across GAP 14 airports decreased by 5.5% in the first quarter compared to the same period of 2025. These decreases reflect various factors that impacted the Mexican as well as the Jamaican operations. In the Jamaican operations, we continue to face headwinds from the Hurricane Melissa. Despite this, the recovery of hotel capacity has been better than expected along the main tourist corridor. It is important to note that, while as today, passengers volume have not yet reached a pretty strong level. Trends indicate that we will regain this level by the fall quarter of this year. Trafficking clients in Mexico were largely driven by temporary disruptions, such as the security incident in Jalisco during the last week of February. This event negatively affected the perception of safety and key leisure destinations in Mexico. such as Puerto Vallarta and Euskal, thereby softening demand at these airports. These dynamics extended to the typical high-season month of March, affecting the spring break traffic and causing demand to decline. Tijuana was also, in fact, given its stronger reliance on a cross-border travel, as roughly 75% of CBX users are U.S.-based passengers accessing domestic flights to Mexican tourist destinations. Additionally, global macroeconomic volatility impacted operations. This included geopolitical tension and subterranean fuel prices, which pressured airline operation costs, prompting a realigning of capacity to maintain efficiency, as well as the possibility of economic downturn. Now moving on to the revenues, total revenues increased by 2.8% compared to the first quarter of 2025. Aeronautical revenues for the group grew by 3.9%, but in Mexico increased by 9.3%, primarily driven by the implementation of maximum tariffs of the 2035-2029 regulatory period in Mexico, which are linked to the highest level of CAPEX investments in the history of the company. Aeronautical revenues increased by 6.1%, supported by strong performance in our Mexican operation, reaching 10.7%. particularly in business operated directly by GAP. This includes the bonded warehouse business, which represents around 21% of total non-organical revenues. This performance underscores the resilience of our business model and the continued success of our increasingly diversified revenue base. Cost of service increased by 6.5% compared to the same period last year, mainly due to the higher personnel costs increased security and maintenance expenses, and the expansion of operational areas. We worked hard to offset this pressure by maintaining rigorous cost control throughout the organization. As a result, EBITDA increased by 6.4%, reaching 6 billion pesos, with an EBITDA margin of 68.3%. Reflected both revenue growth and operational efficiency. This despite the reduction of an additional concession fee in Montego Airport, due to the decrease in passenger traffic and revenues, which is a temporary effect. Regarding our financial position, CAP maintains a strong liquidity position with a cash and cash equivalence of 23.2 billion pesos during the first quarter of 2026, mainly due to the historic bond issuance of 10.7 billion pesos on March 31. Per sales we allocated towards our strategic acquisition of 25% of CVX, as well as capital expenditures. Furthermore, during the quarter, we refinanced existing debt, optimizing our balance sheet, and strengthening our overall financial flexibility. In terms of CAPEX, we continue to advance our investment program under the current master development plan. The plan will require 1.8 billion pesos, focusing on enhancing capacity as well as the passenger experience across all of our airports. I would like to briefly update you on our strategy initiatives. As you know, in December 2025, our shareholder approved the business combination related to the CDX, as well as internalization of the technical assistance services. This transaction is still in the process of being formalized. Once completed, it will be consolidated in our financial statements, and we expect the conclusion of this process to take place during the second quarter of this year. We believe this initiative will strengthen our long-term growth platform, specifically by promoting our market to close border customers profile, as well as unlocking additional commercial opportunities. As we move into the rest of the year, we remain mindful of the macroeconomics environment and short-term traffic volatility. Despite this, we believe structural demand remains strong, supported by the solid fundamentals of our market. We remain confident that our diversified asset portfolio, strong financial position, and disciplined execution to structure the position gap well to navigate near-term challenge while continuing to generate long-term shareholder value. Later today, we will hold our ordinary shareholders meeting in which we will propose a dividend payment of 20.8 pesos per outstanding share during the following 12 months, among other events. Thank you again for your time. Operator, please open the line for questions.

Yes, if you'd like to ask a question, please press star 1 on your telephone now, and you'll be placed into the queue in the order received. You may remove yourself at any time by pressing pound 1. And as a reminder, participants joining via the webcast may submit questions at any time using the Q&A function. We'll pause for a moment to form our queue. Our first question over the telephone comes from Rodolfo Ramos of Bradesco BDI.

Thank you, Raul, Saúl, Ale, and team for taking my question. My question is on the aeronautical part of the business because it's a two-parter here. After this tariff implementation, can you let us know what your current maximum tariff compliance is and how should we think about it towards, you know, year end? And secondly, you know, on the traffic outlook that you have, you know, there's a host of domestic global factors at play negatively impacting demand for travel. Just can you frame it a little bit in terms of your 2% to 6% guidance? I mean, you know, how you think about it and when do you think we could see a more meaningful recovery there? Thank you.

Thank you, Robert. First, we're living with maximum time. We are between 92 and 93% of the fulfillment. We still having to implement additional air passengers fee changes for the summer in two of our airports, Vallarta and Cabos. So we're still on the track of what we say originally will be really close to 95% for the end of the years. For sure, in all what is related with maximum tariff, we need to take in account the share rate that at the end of the day, an important part of that, of the revenues are denominated in dollars for the case of passenger tour. The other part related with traffic, I would say that today is difficult in regard to what could happen on the traffic in terms of the Iran world and the fuel prices. It would say that it's difficult to have today a more clear view of what could happen in the coming months and how this could be the decrease or the possible decrease of the adjustment on offer of seeds in the market. But the other part that I think we are still seeing is a summer that will come at least on the leisure with some additional seeds. While we are expecting that, on past years during some of these kind of geopolitical crisis, the U.S. passenger is trying to fly more over the neighborhood and the area of the neighborhood could be Cabos or Vallarta. Rather, they will go to Europe or other kind of more long-haul travel. So, what we are expecting in some ways, some additional seats for the summer on those markets. But in general terms, for the moment, we keep, without variance what we saw in the previous first moment as our guidance for the year. We think that some of the temporary effect that the security could bring in terms of the cruise of passengers will be completely behind for the summer. And also, we are seeing better than we expect in recovery of the Montego Bay hotel capacity. But for sure, for the second quarter, we will review, if that is the case, our guidance for the traffic.

Thank you very much.

Next, we'll move on to Alain Macias of Bank of America.

Hi, good morning, and thank you for the call, Raul. Just a question on the CVX and TA transaction. What is pending for it to be completed, and I guess should we expect it to be consolidated in May or in June? Thank you. Thank you, Adan. For being consolidated the result during May. So, yeah, we are just in the middle of that. But yeah, that will be our target.

Thank you.

Next, we have or JP Morgan.

Yes. Good morning. Thanks. Thanks for taking the question. Two questions. The first on the commercial front, first of all, congrats on the strong results during the first quarter of the year. Just wondering what is behind the very strong cargo performance, if there's anything in particular to GDAC or something else, and if we can assume these numbers as sustainable going forward. And the second question is on capital allocation. So now following the coming conclusion of the CBX transaction, I understand the Turks and Caicos was put on hold as well. If there's anything else that you'll be evaluating on the inorganic side of growth opportunities. Thank you.

Thank you, Guillermo. I mean, related to the results and specific to the partner warehouse business, it is important to have in mind that this business is mainly moved by the cars. And in the case of Guadalajara and all the central area of Mexico, We are seeing a really important, more than 30% increase of cargo of high value on the area, related maybe by electronics. Foxconn, for instance, has a really big movement on Guadalajara for additional plant. So what we are seeing for the last year is after the announcement of specific tariffs for China and for Asia, some different countries of Asia, We see like a shift on production on some electronic parts from Asia to Guadalajara area mainly. So we are seeing this really important increase in volumes of cargo, volume of the cargo. For these bonded warehouse business, you need to take into account that it comes for a mix of volume and value of the cargo that you are moving. So what we are seeing is that at the end of the day, all these chains of tariff bring some or shift some of the production from Asia to the central Mexico and then to Jalisco and Guadalajara area. In terms of capitalization, as you know, we are looking for some opportunities all the time. So far, we don't have nothing more important than CDX completion and integration to the consolidated commission statements. So, for now, we don't have any other project or major project. We will let know to the market as soon as we have something on the table. was canceled by the government, so we will not continue on that anymore, and so far we don't have any other relevant projects. Yeah, but complementing just the effort of Saúl, for sure we have an important focus on the development of new business in our airports. I will say we are working in two different projects for hotels in airports of Mexico, of our airports in our net, So, and for sure, the big focus on continuing working on the efficiency of the margins in all of our directly operated BIOS business. So, for sure, we will continue to see and review different kind of opportunities to MIA, but also we have like a big focus on how to include the efficiency of our directly operated BIOS business.

Amazing. Very clear. Thank you both.

From Itaú and Ivanko, we have Pablo Recalde.

Hi. Good morning, Captain. I have one question on that, on the cost side. So, we saw depreciation expense remain flat each year over year. So, I just want to understand why, despite all the cutbacks you made last year, depreciation remains stable year over year?

Well, hi. This is Saul. Well, basically, we are aligned. We don't have any other major project capitalized and depreciated. Also, as you may know, we have more than 25 years of concessions. So, the major projects that were capitalized and were depreciated during the last years were interrupted due to the term of... of the depreciation period, that the net effect of the offset of the increase in depreciation, net of those assets that were already 100% depreciated.

Okay, Saúl. Thanks a lot.

Next, we have Gabriel Himelfarb of Scotiabank.

Two quick questions.

First, are you seeing any meaningful capacity movements from airlines, mainly domestic or perhaps low-cost U.S.

airlines, given the rise of fuel prices and perhaps what happened in Jalisco in the past month? And my second question is about the CVX. I think it was financed 25% in pesos. Mexican pesos, why was the logic of being financing pesos rather than U.S.

dollars? Thank you very much.

Thank you, Gabriel. First, from the side of the seat capacity of airlines, it is important to separate the two possible effects. The first one related with the concerns I would say that we are not seeing any kind of structural change on the ship's capacity on that area. But related on the fuel cost on what would be the possible reaction or capacity movement of airlines, for sure it's something that's still on the table in some way. For the moment, we are seeing some decrease in capacity, at least not so relevant today. But we are seeing the cut of some services. For instance, announced the cut of some services in Guadalajara. We are seeing some decrease on services on Tijuana also, in Cancun. So I would say that to have a perfect view of what could happen on this level of close to $110 per barrel of oil. I would say that if you see, for instance, the price on 2022 was just close of the same level and we don't see on that moment decrease on capacity. What's still happening is the openings of different routes. For instance, Bolares announced the new routes to Guadalajara to Mazatlán, or Guadalajara to Zacatecas, Guadalajara to San Luis. We are still seeing additional capacity, but for sure, it's the moment of decrease of capacity due to the cost of the fuel is still on the table. We need to, in some way, understand how long it could take to, in some way, normalize the price of the fuel. And on the other hand, how important could be the resilience and the demand for the past few of the price of this peak on fuel into the ticket. So, yeah, I mean, I believe for the moment we are not seeing an important decrease in capacity. I would say that we are still seeing an increase due to the fact of new routes. Thank you. Related to your second question, we decided to take advantage of the level of the of the exchange rate. As you may know, we are in the lowest levels in the exchange rate. The position of the peso is playing in our favor, so the idea is to take a long-term debt in tracking to finance this asset in Mexican pesos. that avoid some volatility in our balance sheet in the long-term view. As you may know, the effects of this change rate will be affecting our P&L. So, in this way, we have a little bit higher interest rate, but we have certainty about our long-term view balance sheet.

Okay, very clear. Thank you very much.

From Barclays, we have Pablo Montenegro.

Hi, . Good morning. Just one question in terms of traffic expectations for next year. I know we're very early, but have you had any contact or new information of Viva Volaris, any color on that? or how the potential merge will shape the domestic travel, and especially in the routes they overlap. Any info there or something that you would like to share? Thank you.

Thank you, Pablo. Yeah, I would say in terms of the merger, or if you will prefer to . For the moment, we are not seeing any practical change. We are still, I mean, talking with them and having communication, direct communication with both governments. We are, they still talk about there will be two different companies, and for the moment, they are not talking about the overlapping. But once I am in Mexico, have a specific view about the transaction. We could have more color about how is it going to be this transaction in some way or the other. But at least with the communication that we are having with the veterans, at least for the moment, they are not communicating anything related with overlapping. And they are just talking about the operation These two different companies do still as it is today.

Okay. Fair enough.

Thank you. And we'll move on to Andres Aguirre of PBM.

Hi, guys. Thanks for the call and congrats on the results. We noticed that accounts payable increased sharply to around 2 billion in the cash flow statement. Could you please elaborate on what is driving this increase?

Thank you. Hi. Yes, we were, we have a significant increase in the effective or cash position because the issuance bond, the March 31st, that last, for deposits will be used for the acquisition of 25% of CDX, which will be in cash. And additionally, for capex committed into the MVP. So that's basically why we have this significant increase. It was 10.7 billion more in cash that will be used for the of CDX. Great.

Thanks for the information.

And we'll move on to Alberto Valerio of UBS.

Thank you. Thank you for taking my questions. This is one of your own topics. modeling the context during the year we know that seasonally we start a little bit weaker and then increase the characters during the year how should we expect that and the second one about uh the jet fuel uh anything that concern you guys uh we know that capability cannot mistake they do not hatch the fuel uh i know that it's not an unusual year but how much is the supply of seeds for Mexico during, during, during seeds, which is current price of oil price? Thank you very much.

Related with the, with the . Related with the seeds in Mexico, I mean, for sure, as you said, the hedge in different have different levels of, of, of . But I would say the important thing to see what will happen is the resilience and the specific demand for the pass-through of the tires, of the cost of this fuel into the airfare. So that will be the first part. And second, it's going to be the kilometers that that specific route could bring. So let me put it this way. I will say that in a first stage, we're going to see some kind of more or additional decrease on seeds on some specific routes that have more kilometers when you talk about domestic market. This is why we are expecting seeing some kind of effect on Tijuana, for instance, where their shorter flies have like two hours and a half and their average time in the plane for a Tijuana flies more than a language three hours. So on these kind of routes where the demand is not enough resilience for ghetto, the full impact of the fuel cost, we're gonna see some decrease of buses. But in the other hand, There are some specific routes that have like less than two hours of flying. That could be Los Angeles to Cabo, two hours and a half, Cabos to Vallarta, Cabos, Vallarta to Los Angeles, Bonita. Or all the short, really short routes could be Mexico to Guadalajara, Mexico to Vallarta, Mexico to Cabos. That would be interesting on the mix that, of the demand that we expect to be resilient on the increase on airfares and in some way, short flights or short kilometers, short in terms of kilometers flight. So the needs of both parts and the effect of additional leisure passengers not flying long haul from the US and flying or switching to Mexico beaches. All these effects together made us think that our original guidance was still in place for the year. But for sure, it is difficult today to have like the complete crystal ball of what would happen in terms of the fuel. But if in general terms, the conditions and the price of the barrel is still we could say that we are still seeing the same level of guidance for the end of the year. Your second question, the CAPEX will be deployed during the following months. As you may know, our economic cycle in terms of CAPEX is more concentrated in the last quarters of the year. In the first months, we are in the process for all these projects, so we are in the middle of that, so we will be more intensive in terms of deployment during the following months.

Very helpful.

Thank you very much. And as a reminder, everyone, participants joining via the webcast may submit questions at any time using the Q&A function. And we'll proceed with the phone questions. Next, we have Abraham Fuentes of Santander.

Hi. Hello. Recently, we have seen some pressure in terms of traffic in Tijuana. I wonder if you can give us more about what's going forward and maybe the main dynamics behind this expectation. Thanks.

I mean, in terms of Tijuana, what we are seeing around is for sure we have like a mix of different things happening over there. The first related that we are still with a lack of capacity related of the Pratt & Whitney Indians in Tijuana, and mainly from Volaris, are still being there. We think that for the summer, we will begin to see more of these planes flying. That is the first part. What is related, what we thought that's going to be completely temporally, that was related with all these security matters after the mental capture operation, that in some way is going to be, I mean, on the past, and we will in some way recover fully for that effect on the summer. In general terms, what we are seeing for Tijuana is that on the summer, we will see a more important revenue and recovery of traffic related for first additional seats coming back to the airport. And second, I would say a softer base of comparison versus last year. But in general terms, I would say that we're still optimistic that Tijuana, at the end of the year, is going to have a positive result or it will grow in terms of passengers.

Thank you.

If there are no further questions at this time, I'll turn the call back over to Mr. Raul Revaita for closing remarks.

Thank you once again for joining us today. Before concluding, I would like to invite you all to join us on May 13th for Gap Day 2026. The event will start at the CBX facilities and will continue at the Juana International Airport and will include a series of space traffic management presentations, followed by a guided tour for our airports and the CBX facilities. We believe this is an excellent opportunity to learn more about our strategy, operations, and long-term growth outlook. For more information and further details, please reach out to our investor relationship. Thank you, and we look forward to seeing you there. Have a great day.

Thank you. This concludes GAAP's conference call for today. Thank you for your participation, and you may disconnect.