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

Good morning and welcome to GAP's second 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. It is now my pleasure to turn the call over to GAP's investor relations team. Please go ahead.

Thank you and welcome to GAP's second quarter 2026 conference call. Prior to introducing GAP's management team, I'd like to take a few moments to mention the forward-looking statements as described in the financial report. Please be advised that any comments 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 issued previously. Thank you for your attention. It is my pleasure to introduce our speakers from GAP today, who will be discussing with you the operational and financial highlights for the second quarter of 2026. These are Mr. Raul Revuelta, Chief Executive Officer, and Mr. Saul Villarreal, Chief Financial Officer. Mr. Revuelta, please proceed with your opening remarks.

Thank you, Maria. Good morning, everyone, and thank you for joining us today. The second quarter of 2026 has the resilience of GAAP's business model. Passenger traffic declined by 5.6% compared with the second quarter of 2035. Nevertheless, revenue, including construction services, increased by 4.9%, area grew by 8.4%, and area margin expanded by 230 basis points to 69.3%. These results reflect the combined strength of our diversified airport portfolio, the continued growth of business operating directly by GAP, initial contribution from the Crossword Express, the global implementation of approved types and internalization of technical systems services. While we are not satisfied with the current traffic performance, this query demonstrates that GAP is increasingly capable of protecting earnings and generating growth through multiple complementary revenue streams. Let me begin with passengers' traffic. During the second quarter, total passengers' traffic across GAS network of 14 airports declined by 5.6% versus the second quarter of 2021, reflecting a combination of factors affecting both our Mexican and Jamaican operations. In Jamaica, we continue to experience the impact of Hurricane Melissa, while the recovery of hotel capacity along the main tourist corridor gradually continues. It has not yet returned to the pre-storm levels. However, we can hope there will be opening points to extend recovery throughout the second half of this year. If this continues with spectacular traffic, we'll continue to strain in the coming months. The operating environment in Mexico remains challenging throughout the quarry. While airlines practically manage capacity in response to the current economic environment, rising jet fuel costs continue to pressure airfare prices. In addition, international issues Demand for some of our big destinations are affected by security concerns, including the security incident in Puerto Vallarta during the previous quarter, as well as various travel and battery issues by the U.S. government as a result. International traffic broke the quarter decline highlighted by the 27% reduction in international passengers at Puerto Vallarta. We are actively partnering with airlines and regional tourist stakeholders to rebuild world connectivity and boost travel confidence in this area. In the month of June, the city of Guadalajara hosted four or five FIFA World Cup matches. We are proud to highlight that this demonstrates the operational strength of the Guadalajara airport. Throughout the tournament, the airport successfully handled additional charter flights as well as the arrival of national teams, official delegations, and flags. Despite heightened security protocols, operations remained normal, preserving excellent standard service levels for both daily passengers and airline partners. As a result, traffic at Guadalajara Airport rose by 6%. This was partially offset by a temporary shutdown in business and leisure travel at early-gap airports during the World Cup. We expect this demand to normalize in July following the completion of the tournament. We believe that a significant portion of the headwinds affecting traffic is temporary. Although the pace of normalization will vary by market, our revised guidance does not assume an immediate or complete recovery. Instead, it represents a gradual improvement by 19 new routes launched during the quarter, the contribution of new frequencies that began operation in June, the gradual restoration of hotel capacity in Jamaica, A more favorable year-over-year comparison with the second half. During their financial results, aeronautical revenue decreased by 3.2% primarily due to the lower passenger traffic both in Mexico and Jamaica, as well as a 10.9% appreciation on Mexican pesos, which negatively affects the transition of revenue generation in U.S. dollars, as well as international passenger charges. It is important to highlight that those effects were partially offset by the gradual implementation of maximum tariffs approved for the 2045-2029 creditory period in Mexico. Neurological revenues increased by 23.9%, supported by continued growth across the business line operated directly by CAAT, as well as the consolidation of the cross-border spread beginning on the 1st of May of this year. Without considering the consolidation of the CDX, Revenue from the business lines operated directly by GAP once again delivered strong growth, increasing by 17%, despite lower passing restrictions. The carbon-bounded warehouse operations grew by 22%, advertising by 58%, hotel operations by 27%, convenience stores by 11%, and parking by 9%. Let's just take a pause here because This demonstrates that JAP's commercial strategy is not solely dependent on passengers' volume. The commercial strategy we have in place increasingly reflects our ability to include monetization, expand directly operated platforms, and capture a greater share of passengers' and logistics-related spending. Thus, these measures are becoming a more significant source of recurring earnings and central to our strategy of building a more diversified infrastructure platform. At the same time, Businesses that are more directly exposed to international-issued traffic and freight exchange, including duty-free and VIP lunch, remain under pressure. We expect these categories to improve as international traffic gradually recovers. In terms of CDX, this operation generates revenue of 168 million pesos during the months of May and June. Juan Luis Perez, over 6,226 passengers, thousand passengers using the facility going in both directions. This generates an average revenue of $42.8 per passenger, which is aligned with the GAAP expectations. Although CVS traffic stream will remain below those of the prior year, this finance initial financial contribution demonstrates the strength and resilience of pricing and commercial models. We continue to see opportunities in dynamic pricing, ancillary services, passenger experience, and improved connectivity between Tijuana and Southern California. Moving on to total operating costs, deals remain relatively stable compared to the same period of the last year. Deal results include the positive effect of the reversal of the technical assistance fee provision due to the internalization. It also includes two months of CDX operation expenses and the one-off merger-related expenses. During this effect, operating expenses increased by 3% compared to the second quarter of 2025. Cost of service probably increased due to the higher personnel expenses, maintenance costs, and security expenses across our represents. As I recall, EBITDA increased by 8.4%, reaching 6 billion pesos during the quarter, an EBITDA margin of 69.3%. In terms of our financial position, we continue to maintain a solid liquidity profile. The business combination contributes by 5.4 billion pesos in cash and cash equivalents, and focuses on the scale and diversification of our asset base. Moving on to the CAPEX, we continue to execute our investment forum on the 2025-2029 Master Development Plan in Mexico and our capital development programs in Jamaica. Our investment remains focused on expanding airport capacity, improving operational infrastructure, and enhancing passenger experience throughout, all while supporting the long-term growth of our airport network. Let me now turn on the revised 2026 growth guidance. Considering the concentrations of CVX, internalization of technical assistance services, current passenger traffic trends, and the progress of the company investment projects, we have updated our annual expectations. Currently, we expect passenger traffic to land at a range of between minus three and flat growth. I just want to mention that this hour reflects a rather long problem during the second half, but must not assume that all airports return to the world at the same time, Puerto Vallarta and Montego Bay achieve a complete recovery during 2026. Aeronautical revenues are expected to increase between 1% and 4%, supported by the implementation of tariffs approved by the authorities for our airports in Mexico. No aeronautical revenues are expected to grow between 21% and 24%, driven by the performance and cap of the air business as well as the consolidation of CVX. Evida is expected to grow between 10% to 12%. This would yield an Evida margin of approximately 67% plus or minus 1%. This reflects, among other factors, the internalization of technical assistance and technology transfer service. Finally, CAPES is expected to be around $4 billion. This includes $9 billion for community investment at airports in Mexico under the Master Development Program. Two billion for investment at airports in Jamaica and one billion for commercial investments. A follow-up will continue to undergo to the approval of projects with the relevant authorities to incorporate Fibra Gap with the objective of subscribing a minority equity interest in the 12 Mexican airport concession areas. We expect this to go throughout during the third quarter of this year and we will keep you informed of any update on this project. Before concluding, I would like to emphasize three points. First, despite the 5.6 overall decline in passenger traffic, the strong of the Lion Air for Business Protect, the company earnings capacity. Note that the report data increased by 8.4% and the FDR margin expanded to 69.3%. Second, our diversification strategy is already producing measurable results. Excluding CVS, business operated directly by GAAP grew by 17%, while CVS contributed 216 million pesos in EBITDA during the first two months of the consolidation. Third, our long-term strategy remains unchanged. We continue investing in airport capacity, commercial platform, logistics, and across-order mobility, while maintaining disciplined capital allocation. This quarter demonstrates that GAAP is no longer dependent on a single road driver. Traffic remains fundamental to our business, but a proprietary, directly operating commercial business, logistics, CVS, and internalization of technical assistance services provide a complementary source of earnings and receivables. Thank you again for your time. Operator, please open the line for questions.