Operative & Financial Results:

Transcription

1 Operative & Financial Results: F i r s t Q u a r t e r

2 Grupo Posadas, S.A.B. de C.V. & Subsidiaries Mexico City, April 18, 2013 Information presented with respect to the same quarter of last year under IFRS accounting standards: Total revenues and EBITDA grew 108% and 171%, respectively System-wide RevPAR increased 7% in pesos Sale of 12 hotels to Fibrahotel (REIT) US$50 million Add-on with a YTM of 6.3% Cash available as of March 31, 2013 of $1.8 billion (US$149 million) Pipeline considers 32 more hotels and 24% more rooms for the next 24 months We had another good quarter posting three digit growth rate both of our consolidated revenues and EBITDA mainly driven by a good performance of our hotels system-wide and from the sale of twelve hotels to Fibrahotel that we continue managing under long term agreements, said Jose Carlos Azcarraga, Posadas CEO 2 > Financial Highlights Million of pesos Var. March 31, Q13 % YoY % Totales Revenues 3, EBIT EBITDA Net Income EBITDA grew 171.4% during the 1Q13, comparing very favorably with 1Q12. During 1Q13 the sale of twelve hotels was concluded and generated an EBITDA of $425.2 million. Improved margins in all segments that is Owned & Leased hotels, Management, and Vacation Club- generated an additional EBITDA of $19.0 million representing an 8.9% increase under same basis. System-wide hotel performance continued improving during the first quarter of Our Revenue Per Available Room (ADR) increased 7.5%, occupancy decreased slightly by 0.5 percent points ( pp ), which resulted in a RevPAR growth of 6.6%. Urban hotels, which represent 79% of the total rooms operated, continue to perform better with an increase in RevPAR of 3.0%. On the other hand, our coastal hotels had an even better performance with a RevPAR increase of 22.3%. These operational results are also due to the additional number of international tourists that are returning to our coastal hotels and to the holy week vacationing period that happened during the last week of March of 2013 while occurred the first week of April in the previous year. For additional information: Gerardo de Prevoisin Tel.: (5255) gerardo.deprevoisin@posadas.com

3 On On January 21, 2013, Posadas, executed the sale of 11 hotels to FIBRAHOTEL and simultaneously paid the outstanding $270.2 million (US$20.8 million) bank loan with Scotiabank. On February 28 the remaining hotel was sold. On October 22, 2012, Posadas announced that it had reached an agreement with FIBRAHOTEL to sell the property, plant and equipment of twelve hotels located in the center and north of Mexico that are currently managed under the Fiesta Inn and One Hotels brands. Posadas held majority in these hotels. Posadas continues operating these hotels and the cash received will be used to further its development in Mexico. The sale of the twelve hotels with a book value of $1,258 also represented approximately US$10 million in EBITDA (pro forma 2012). After the sale of approximately 10% of the total systemwide rooms, Posadas owns or leases 42% of the total rooms under management. The Shareholders Extraordinary and Ordinary General Meeting held on March 15, 2013 approved a cash dividend of $83.6 million equivalent to $0.15 (fifteen cents) per share. The dividend payment will be available as of April 18, On January 30th, 2013, Posadas announced the successful placement at a yield to maturity of 6.3% of an Add-on of US$50 million of its 7.875% Senior Notes Due 2017 originally offered on November 27, The net proceeds of the Add-on were used to pay the balance of a US$21.5 million bank loan as well as for corporate purposes, becoming free of amortizations for the next 21 months.

4 > Development As of March 31st, 2013 our pipeline is comprised of executed agreements to operate 32 new hotels with 4,454 rooms. This development plan represents an increase in capacity of approximately 24% with 83% of these hotels under the economy and business formats. These hotels represent a total investment of US$286.7 million of which approximately 10% will be contributed by Posadas, mainly due to the construction of the last phase of the Los Cabos Vacation Club. Openings are expected to begin in the third quarter of 2013, and we expect all of these to be operating before December 2014 according to commitments made with the different property owners. Brands Mexico Total % Hotels Rooms Hotels Rooms Hotels Rooms Arrendados Posadas Fiesta Americana Fiesta Inn 11 Administrados 1, ,583 Terceros 36 FA Vacation Club Propios One hoteles 17 2, , Total 31 4, , Distribution by rooms Total investment US $287 M 10% 97% 3% Owned Managed Own Third parties 90% Openings LTM No. of rooms Type FI Puebla las Animas 140 Leased One Guadalajara Centro Historico 146 Managed One Xalapa Las Animas 108 Managed Live Aqua Bosques 135 Managed One Queretaro Aeropuerto 126 Managed One Oaxaca Centro 109 Managed Total 764

5 > Owned and Leased Hoteles Total Urban Coastal % Var. % Var. % Var. 5 1Q13 (QQ) Average rooms Daily rate Occupancy (Var. in pp) RevPAR During the quarter, after excluding the effects of the sale to Fibrahotel, revenues from this segment represented 44% of the consolidated revenues. Against last year s same quarter, this segment had a 14% increase in EBITDA. 6,469 1,098 64% 703 (16.6) 9.8 (1.2) 7.8 5, % 603 (17.5) 5.9 (2.9) 1.0 A higher ADR of 9.8% and a decrease of 1.2 pp in occupancy, resulted in a RevPAR increase of 7.8%. The average number of rooms available was reduced by 16.6% as a result of the hotels sold. 1,025 1,519 81% 1,237 (11.0) Results for urban hotels showed an improvement when compared with 1Q12; on average with 17.5% less rooms owned, a 5.9% increase in ADR and a decrease in occupancy of 2.9pp, RevPAR improved by 1.0%. The average number of rooms available for coastal hotels was lower by 11.0% due to the transfer of the Fiesta Americana hotel in Cozumel that as of July 1st, 2012 is operated by the Vacation Club business segment. This segment showed an increase in ADR of 15.9% and in occupancy of 7.2pp. All of the above resulted in a RevPAR increase of 27.1% when compared with the same period of last year. This was in part due to the good performance during the holy week vacation period that was accounted for in March 2013 versus April in 2012.

6 > Management Total Urban Coastal % Var. % Var. % Var. 1Q13 (QQ) Average rooms Daily rate Occupancy (Var. in pp) RevPAR 16,545 1,082 61% 665 Includes Ownwd & Leased and Managed hoteles (0.5) , % (1.8) 3.0 2,287 1,660 74% 1,234 Revenue for the Management business represented, after excluding the effects of the sale to Fibrahotel, 25% of total revenue in the quarter, increasing 3.4% with an EBITDA margin of 29.0% representing a 6.5pp improvement versus 1Q12. The average number of rooms operated recorded a 3.5% increase in the quarter, while System-wide hotels reported a 7.5 % improvement in ADR, a 0.5pp drop in occupancy, and a RevPAR growth of 6.6%. (3.4) System-wide urban hotels had an increase in the average number of operated rooms of 4.7% with an improvement in ADR of 6.1%, along with a 1.8pp decrease in occupancy to achieve a higher RevPAR by 3.0%. Coastal hotels showed a decrease of 3.4% in the average number of available rooms, including the transferred hotel in Cozumel to be managed by the Vacation Club segment and the opening of the One Ciudad del Carmen and FI Cancun las Americas hotels. In addition, ADR, occupancy and RevPar increased 9.9%, 7.5pp and 22.3%, respectively. During the first quarter of 2013, the Company opened two new hotels and six in the last twelve months. These six hotels represent 764 additional rooms: FI Puebla las Animas, One Guadalajara Centro Historico, One Xalapa Las Animas, Live Aqua Bosques in Mexico City, One Queretaro Plaza Galerias and One Oaxaca Centro.

7 > Vacation Club & Other The Vacation Club and Other business segment mainly include the Fiesta Americana Vacation Club (FAVC). Total revenues for the quarter amounted, after excluding the effects of the sale to Fibrahotel, 31% of the group s consolidated revenues in 1Q13, an increase of 19.3% when compared to the same quarter of the previous year. During the first quarter of 2013, we continued to observe a better performance in this business segment, mainly from the sale of memberships of the Vacation Club and the KiVac program that have more than 30,000 and 8,000 members, respectively. > EBITDA In 1Q13 an EBITDA of $666.1 million was recorded, that compares very favorably with the $245.4 million recorded in 1Q12. The margins for each period with respect to consolidated revenues were 21.1% and 16.1%, respectively. For the last twelve months, EBITDA (IFRS) was $1.474 billion, (US$119.5 million), 125% higher than the $653.7 million of 1Q12 (LTM). After excluding the effects of the sale to Fibrahotel, EBITDA was $1,048.6 million (US$85.0 million). 7 > Capital Expenses Capital expenditures during the quarter were $110.4 million, 52% was used for maintenance of hotels, 22% for corporate purposes and the remaining 29% for the vacation club.

8 > Comprehensive Financial Cost Dic -12 Dic -12 Concept 1Q13 1Q12 Interests earned Interests expense Fluctuations loss (gain) Other expenses (products) Financial expenses Total Figures in thousands At the end of the quarter, considering the effect of IFRS, the coverage ratio is 2.8 times, 1.0 times higher than the observed in the same quarter of the previous year. The foreign exchange unrealized variation was due to the 5.2% appreciation of the MXN against the USD from 4Q12 to 1Q13. (17,525) 95,225 (198,455) (46,963) 20,348 (147,371) As of March 31, 2013, the derivatives notional amount (Cross currency swap) was US$9.4 million and no collateral was posted. This Cross Currency swap matured on April 4th, 2013 and as of the date of release of this report we have no other derivatives in our books. (866) 138,901 (210,354) (154,970) 10,982 (216,307) 8 > Net Income As a result of the aforementioned, net income for the quarter was $445.4 million. This was mainly due to the profit from the sale of the 12 hotels.

9 > Financial Position As As of March 31, 2013 the cash balance was $1.842 billion. The main uses of cash during the quarter were, among other items: debt amortizations and interests paid. Total Debt at the end of the quarter was US$358 million while Net Debt (IFRS) was US$199 million, the Net Debt to EBITDA ratio was 1.7 times under IFRS, this ratio is 5.2 times lower than the ratio observed in 1Q12. 9 The Total Debt mix under IFRS at the closing of the quarter was as follows: 100% in long-term, in U.S. dollars and fixed rate. The average debt maturity was 4.0 years and there was no secured debt. As of the release date of this report, the existing ratings for the 9.25% Senior Notes Due 2015 and 7.875% Senior Notes Due 2017 were: Fitch: global Issuer Default Rating (IDR) B+ and local (Caval) BB+, both with stable outlook. Moody s: global scale B2 and stable outlook. S & P: global B with stable outlook. In compliance with article Frac. VIII of the Mexican Stock Exchange rules, Posadas informs that JP Morgan provides analysis coverage to Grupo Posadas.

10 > Grupo Posadas as of March 31st, 2013 Posadas is the leading hotel operator in Mexico that owns, leases and manages 107 hotels and 18,592 rooms in the most important and visited urban and coastal destinations in Mexico (99% of total rooms) and own one hotel in the United States (1%). 79% of rooms are in urban destinations and 21% in coastal. Posadas operates under the following brands: Live Aqua, Fiesta Americana Grand, Fiesta Americana, The Explorean, Fiesta Americana Vacation Villas, Fiesta Inn and One Hotels. Posadas trades in the MSE since For further information please visit Distribution by rooms 58% 27% 15% Leased Managed Owned 2,810 rooms 10,861 rooms 4,921 rooms 10 Brand Mexico USA Total Hotels Rooms Hotels Rooms Hotels Rooms Live Aqua Fiesta Americana 16 4, ,616 Fiesta Inn 61 8, ,867 FA Vacation Villas 6 1, ,692 One Hotels 20 2, ,495 Other Total , ,592 % 99% 1% 100%

11 > Income Statement IFRS (millions of pesos) 11 Concept 1Q13 % 1Q12 % Var.% Total Revenues Owned & Leased Hotels Revenues Direct cost Contribution Management Revenues Direct cost Contribution FA Vacation & Other Revenues Direct cost Contribution 3, , , , (5.2) Corporate expenses Depreciation / amortization Other expenses (revenue) Operating Profit (11.4) (88.9) EBITDA Comprehensive financing cost Profit Before Taxes & Assoc. Co. Part. in results of Associated Co. Profit Before Taxes Discontinued Operations Income taxes Deferred taxes (147.4) (4.7) (216.3) (37.7) (14.2) (2.5) (31.9) na na (3.5) 81.5 Net Income before Minority Minority Interest Net Majority Income , With the application of the IFRS as of January 1st, 2012 the following important changes are presented in the financial information; In order to show the results of our different segments, we did not eliminate certain intercompany transactions in our income statement under NIF before January 1st, Under the criteria established in IAS 27, Consolidated and Individual Financial Statements, such transactions were eliminated as of January 1st, Intercompany expenses and income from fees paid for the hotels operation are eliminated, the expenses correspond to the owned and leased hotels and are accounted as revenue in the Management segment. These expenses and income were not previously elimininated.

12 > Consolidated Balance Sheet as of March 31st. of 2013 and December 31st of IFRS (million pesos) Concept Mar -13 % Dec - 12 % 12 ASSETS Current Cash & short term investments Notes & accounts receivable Inventories Other assets Total current assets Long Term Accounts and notes receivable Investments in shares Other investments Property, plant and equipment, net Intangible and deferred assets Non current assets Total Assets LIABILITIES Current Suppliers Bank loans Stock market loans Other Other current liabilities Total current liabilities 1, , , , , , , , ,48 1, , , , , , , , , Long Term Bank loans Stock market loans Other liabilities Deferred liabilities and Other Total Liabilities 4, , , , , , CONSOLIDATED STOCKHOLDERS EQUITY Majority interest Minority interest Total 5, , , , Total Liabilities & Stockholders Equity 13, ,248.4

13 > Consolidated Cash Flow Statement - IFRS (million pesos from January 1st. to March 31, 2012 & 2011) Consolidated Net Income Before Taxes + (-) Items not requiring cash + (-) Other unrealized items + (-) Entries related to Investments + Depreciation and amortization for the year + (-) Gain or loss on sale of property, plant and equipment + (-) Equity in results of associates and joint ventures (-) Interest income +(-) Other items + (-) Items related to financing activities + Accrued interest + (-) Currency fluctuations + Derivatives Cash before taxes Cash flow provided or used in operation + (-) Decrease (increase) in accounts receivable + (-) Decrease (increase) in inventories + (-) Decrease (increase) in other accounts receivables and other assets + (-) Increase (decrease) in suppliers + (-) Increase (decrease) in other liabilities + (-) Income taxes paid or returned Net cash flows from operation Net cash flow from investing activities (-) Investment in intangibles (-) Investment in property, plant and equipment + Business sales (-) Interests received + (-) Other items Net cash from financing activities Net cash flows + Bank financing + Stock market financing + Other financing, includes margin calls (-) Bank and stock market financing amortization (-) Other financing amortization (-) Dividends paid + Premium on issuance of shares + Contribution for future capital increases (-) Interest expense (-) Repurchase of shares + (-) Other items (456.6) (456.6) (0.1) (17.5) (41.1) (104.0) 95.2 (198.5) (0.8) (635.0) (301.3) 3.5 (24.5) (48.1) (228.0) (36.6) (439.0) 1,841.4 (81.2) 1, ,402.4 (1,040.2) (1,647.3) (42.6) (154.5) (31.3) (44.0) (44.0) (0.4) (2.6) (578.9) (210.4) (507.4) (142.0) (265.9) (299.8) 5.8 (11.5) (123.1) (19.8) (407.9) (10.3) (247.0) (1,099.1) (210.2) (11.6) Net increase (decrease) in cash and cash equivalents Changes Cash and cash equivalents at the begining of period Cash and cash equivalents at the end of period ,48 1,842.2 (3.2)