Aena Sme S.A Unsp/Adr

Hello everyone and thank you for joining us today for the AENA Q1 2026 results presentation. My name is Sammy and I'll be coordinating your call today. During the presentation you can register a question by pressing star followed by 1 on your telephone keypad. If you change your mind please press star followed by 2 on your telephone keypad to remove yourself from the question queue. I'll now hand over to your host Carlos, head of IR to begin. Please go ahead Carlos.

Good afternoon, everyone, and welcome to our Q1 2026 results presentation. This is Carlos Gallego speaking, head of IR. It's a pleasure to be with you today. Our CFO, Ignacio Castejón, will host the call together with me. We are going to cover some of the main topics explained in the results presentation that is already available in the CNC website, and we'll finish with a Q&A session. As usual, to ensure that we remain on schedule, we kindly ask you to limit yourself to one question per participant. Without further ado, I give the floor to Ignacio Castellón. Thank you.

Thank you very much, Carlos. Hello, everyone. Good afternoon, and thank you for joining us today with our Q1 2026 results presentation. I will start commenting some highlights, and afterwards, I give the floor to Carlos. We'll have a Q&A session at the end of the call. Let me start on slide four with some comments on traffic trends. As you can see, traffic increased for the group 3.8% year-on-year, up to 81.3 million passengers. If we look at the Spanish network, the annual increase was 3.2%, and we reached almost 65.6 million passengers, slightly ahead of our forecast for this quarter. Please note that the traffic performance for this quarter has been positively affected by the timing of the Easter break. Last year, the Easter break took place in April, and this year has happened between March and April. And we have also experienced some positive shift from rail to air transport. I would say it took place on an extraordinary basis. If we look at the short term from a traffic standpoint, what I can say with you at this moment in time is that April so far is performing well. Let's have a look at the financial performance. 2026 Q1 total revenues for the group. accounted for 1,479.9 million euros. That's an increase of 154.3 million euros. EVDA reached 661 million increasing by 17.4 million. And we look at net profit, profit after taxes, That was circa 330 million euros, an increase of 9.3%, circa an increase of 30 million euros. The growth in revenues was driven by traffic performance, traffic evolution, the increase in the aero charges from March, from March the 1st, the improvement in commercial activity, and the performance of our international assets. Please let me highlight that when we look at the performance on the international assets, Given the increasing construction services, and now looking at the slide six, they mostly explained that increase. The construction services amounted to 84.3 million euros in the first quarter of 2026, compared with only 8 million euros in the first quarter of 2025. Basically, this reflects the progress that we are having in the Congonhas portfolio with the progress in that specific airport in all the construction activities. If we exclude these IFRIC 12 construction revenues, the underlying consolidated revenue growth for the group was 6% in this quarter. Let's have a look at the performance by business lines. Aero revenues, they grow by 5.2%. Commercial revenues, 5.5%. Revenues from real estate, a very positive and high increase with a 16.8%. And international revenues increased by 57.7. Largely driven, as I was explaining earlier, by the construction revenues recognized on the IFRIC-12. If we exclude this effect, the revenue growth, sorry, of our international revenues would have been 8%. Let's have a look in more detail to Aero and commercial. Aero, just a couple of comments. As you know, As you I'm sure have seen in the papers we have said with the market, dilution in this quarter has been 28.7 million euros. That's much higher than the dilution that we had last year. And the main reason is the increase in tariff. Last year, tariff was flat for the first quarter. And in this specific year, the tariff has been flat for the first two months. has increased in the third month and we are taking into account the final tariff for the whole year in order to calculate dilution. That's the main rationale behind the 28 million euros of dilution that are not part of the revenues at this moment in time, in this quarter, but will be revenues for the group in a couple of years through the dilution factors to the K factor. If we look at the commercial revenues, just a few comments. Sales keep increasing, circa 5% in the first quarter of 2026, and also very important growth in all our activities that we manage in-house. I'm referring to VIP services and parking. VIP services keep delivering growth rates higher than 30%, and parking revenues also perform very strongly. When we look at retail activities, I would like to share with you that we have excellent results in the awards of the contracts in F&B and specialty shops, as you can see in the information provided to the market. For example, in F&B, max increased by 30% when comparing max for 2096. And if we look at the specialty shops, max increased by 45% when we compare the max in 2026 to 2025. So very good results from all the contracts award for retailing activities in this quarter. And let me finish on commercial business with another topic. We have managed to reach agreement with a number of tenants in relation to all the losses that the company had through COVID because traffic losses. As a result of these agreements, the company will have a cash inflow in the next months and also an income inflow that you will be seeing in the next quarter when we see the results for the first half of the year. The income that you will be able to see at that moment in time will be circa 30 million euros as part of our commercial income mainly. Let's have a look at cost. So I could move into slide seven. I've seen a number of notes on operating costs this morning from many of your notes. Basically, let me share some information and we can exchange views later on the Q&A. With respect to information, operating expenses, so that includes supplies, staff costs, and other operating expenses for the group. If you look and compare year to year, the increase is 17.8%, total of 850 million euros. Please note that that increase is taking into account the IFRIC 12. So if we remove from that item the IFRIC 12 impact, the increasing cost in OPEX would be circa 7% for the whole group, for the consolidated group. We have been, for a number of years, and especially in the last two calls that we have had with all of you, we have been anticipating that we are seeing a trend with respect to our OPEX in which that trend is provoking that the OPEX figures of the company go north. uh we have also tried to be very transparent about the reasons of that uh of that change of that increase that is mainly explained by more fdes higher traffic regulation quality levels inflation so happy to provide more insight later and i'm sure carlos will will spend some time explaining the other operating expenses later on but that's what we are seeing so when we look at the spanish network The total OPEX figure has increased by 7.9%, reaching 644.3 million euros, with an increase in staff costs of 12.4%, and also a significant increase in other operating expenses. Let's have a look at EBITDA. So I'm referring to slide eight. Reported EBITDA for the first quarter of 2016 amounted to €661.1 million. That's a growth of 2.7% year-on-year, and the reported EBITDA margin for the quarter was 44.7%. These figures on EBITDA, growth, margin, and number, are impacted when we compare those figures with the figures of the previous year or the first quarter of the previous year. And the main impacts are basically explained by the Luton situation in relation to the fire that the parking and the reconstruction of that parking after the fire and insurance compensation, but also IFRIC 12 impacting on the margin. So if we remove the impact, the extraordinary revenues that we had in the first quarter of 2025 related to the fire compensation for the reconstruction of the parking, the increase in the EBITDA of the group would have been higher than 5%, 5.1%, amounting to an increase of 32.1 million euros. If we remove from the margin calculations this compensation, but also the IFRIC-12, the margin of the group would stand this quarter at 2026 at 47.4% compared with a margin also in 2025 of 47.7%. So a decrease, but a very slight decrease. I would say a flattening of the margins when we remove all these extraordinary items. Let's have a look at the net profit that is also in that slide. Net profit amounted to 329 million euros. in the first quarter of 2026. That's an increase of 9.3% year on year. That's a very strong growth that is explained by, of course, the business growth that we have been explaining earlier, but also by the lower depreciation and amortization this quarter compared to the quarter of 2025 because of the adjustments in the useful lives that we explained last year. but also because of the lower net financial expenses that were reduced by 20 million when we compare quarter to quarter. Basically explained by the compensation of all the costs that we have in Brazil that we have in order to be able to pay for the CAPEX in the following months and the applicable exchange rates for this quarter. Let me finish with some comments on EBITDA. With respect to EBITDA moving to slide nine by business segments, EBITDA growth in the real estate activities has amounted to 60, sorry. Sorry, just give me a minute because I cannot see properly. Yeah, 31%, sorry, that was right. The EBITDA for the real estate business increased by 32%, mainly explained by the increase in revenues that I was discussing earlier, 16%, but also by the cost control in that specific business segment. And with respect to international activities, you will see in this slide, Nine, a decline of 3.5%, but it's also explained by all those extraordinary effects mainly related to the reconstruction of the parking facility and the insurance compensation related to that reconstruction. If we were removing that impact, EBITDA for international activity would be going up by circa 16% in this quarter, confirming the very strong underlying performance of all our assets in Brazil and the UK. as Carlos will explain further. Let me finish with some further notes. Hopefully, in the next weeks of this quarter, we will achieve the financial close of the acquisition of a stake in a new holding company that will be owning 100% of the Leeds Abathur Airport and also Newcastle Airport, as we anticipated before year-end. And with respect to the announced transaction related to Rio de Janeiro-Caleao International Airport a few weeks ago, the initial steps in order to achieve financial close of that transaction are happening as we were expecting. On regulatory and corporate matters, as you know, the company made their proposal for DORA last February. That's progressing according to our plans. The AGM that took place in mid-April approved all the resolutions proposed to our shareholders and therefore the distribution of the dividend approved at that AGM took place this week, on Monday, in which €1.09 per share was paid to all our shareholders, an incredible dividend for all our shareholders. And that was all from me. I will let Carlos go into further detail in a number of topics for today's presentation. Thank you very much, Carlos. Thank you.