PERFORMANCE REPORT 3Q17 & 9M17. Page 1/9

Transcription

1 3557 PERFORMANCE REPORT 3Q17 & 9M17 Page 1/9

2 GRU Airport announces R$ million of adjusted EBITDA with a margin of 64.6% in 3Q17 São Paulo, November 9, 2017 The quarterly information and the standard financial statements are presented according to the accounting practices generally accepted in Brazil, in compliance with the provisions of Brazil s Corporate Law, IFRS, and the standards of the Accounting Pronouncements Committee (CPC). Concessionária do Aeroporto Internacional de Guarulhos S.A. ( Airport or GRU Airport or Concessionaire or Company ) presents its Performance Report for the three and nine-month period ended September 30, 2017 or 3Q17. Highlights of 3Q17 GRU Airport ended 3Q17 with a total of 9.9 million passengers (international and domestic) in the three terminals it operates: TPS1, TPS2 and TPS3; In 3Q17, the Concessionaire presented a Total Aircraft Movement of 68.5 thousand aircraft; In 3Q17, the GRU Airport recorded a cargo volume of 74.8 thousand metric tons handled; Adjusted net revenue of R$ million in 3Q17; In 3Q17, the Concessionaire presented R$ million of adjusted EBITDA, it represents a margin of 64.6%. Page 2/9

3 1. OPERATIONAL PERFORMANCE Operating Performance 3Q17 3Q16 9M17 9M16 Total Number of Passengers including connections (Million) % % Total Number of International Passengers (MM) % % Total Number of Domestic Passengers (MM) % % Total Aircraft Movement (MTA) - Thousand % % International MTA (Thousand) % % Domestic MTA (Thousand) % % Cargo Volume 1 (Thousand Tons) % % Airlines % % Destinations % % Parking Spaces 3 9,232 9, % 9,232 9, % Business Establishments % % 1 Volume of cargo loaded and unloaded at GRU Airport cargo terminal (TECA) 2 Considers only the airlines that performed regular scheduled flights 3 Including spaces for motorcycles 4 Disregarding ATMs, Lending, Storage, Temporary Leases, Vending Machines and Secure Bags. The Company recorded a 6.0% increase in the total number of passengers in 3Q17 compared to the same period in the previous year. The main factors for the increase were as follows: (i) expansion of Avianca s operations at the airport, with emphasis on international GRU-MIA operations that began in June 2017 in addition to two daily flights to Santiago, Chile that began in August 2017; and (ii) 14% growth in volume of flights to North America, the market that suffered most from the economic crisis in Brazil the previous year; (iii) increase in capacity across all markets (domestic and international) through the use of larger aircraft. At the beginning of 2017, the effects of the market downturn were still being felt, with decreased volume on the domestic segment. However, the market shows signs of a robust recovery, with September recording the highest domestic growth since April 2014 (10.2%). Therefore, in YTD, it recorded a growth of 1.4% compared to the same period in the last year. The Concessionaire s total aircraft movement showed a 2.6% growth in 3Q17 compared to 3Q16, influenced by the increase in the operation of domestic airlines, offsetting the effect of the downturn reported by other airlines, which reduced the volume of connections and increased the size of the aircraft. The 9M17 decrease of 2.6% in the volume of aircraft movement in counterpoint to the increase in the number of passengers compared to the previous year is explained by: (i) increased rate in flight utilization, particularly in the international segment; (ii) increase of the share of airlines that operate aircraft with greater passenger capacity; (iii) increased use of A321 aircraft by LATAM, to replace the A320 aircraft in the domestic segment; (iv) increases in aircraft size, especially at companies operating flights to the United States and inside South America. Cargo volumes increased by 21.6% in 3Q17 compared to 3Q16, due mainly to: (i) the increased cargo volume of customers from GRU Airport that also operate through Viracopos Airport; (ii) the start of the regular operation of Turkish Airlines and Qatar cargo aircraft; and (iii) the higher demand for parts for export and direct consumption in the automotive segment. The events highlighted in the quarter influenced the 9M17 performance in relation to the previous year. Page 3/9

4 2. OPERATING REVENUE Operating Revenue (MM) 3Q17 3Q16 9M17 9M16 Gross Revenue % 1,475 1, % Tariff Revenue % % Non-Tariff Revenue % % Construction Revenue (IFRS) % % Adjusted Gross Revenue % 1, , % Gross Revenue Deduction (63.7) (59.0) 8.0% % Adjusted Net Revenue % 1, , % Adjusted Net Revenue (MM) Current Period Previous Period 9M17 9M16 Adjusted Net Revenue % 1, , % Tariff Revenues % % Non-Tariff Revenue % % ¹. Disregarding IFRS impacts in relation to Construction Revenue and tariff contribution In 3Q17, GRU Airport recorded an Adjusted Gross Revenue of R$ million, corresponding to an increase of 8.3% over the same period the previous year, and the item Gross Tariff Revenue contributed to the increase, rising R$ 33.7 million stemming from: (i) the annual adjustment of tariffs; (ii) 5% increase in international flights, which have a higher average ticket compared to domestic passengers; (iii) increase in the average size of aircraft, with growth of wide-body aircraft share in operations in South America and the United States, as well as the use of A321 aircraft over the A320 model for domestic flights; (iv) changes in legislation with regard to charging for aircraft length stay, since August 2017; (v) the 3% increase in the market share of GRU Airport impacted by the 21.6% increase in volume of cargo; (vi) change in the method of charging for weight to paper money; and (vii) start of warehousing charges on Saturdays, also since August The item Gross Non-Tariff Revenue increased by 2.9% in 3Q17 compared to the same period in the previous year. Highlighted among the main contributions to the increase are: (i) growth in Duty Free revenue in response to the increase of PAX; (ii) a 14.9% increase in parking revenues, influenced by growth in the number of passengers and diversification of the business plan. On the other hand, there was a reduction of 55% in the item Advertising, attributed to the rescission that took place in December 2016 with the company responsible for advertising activity at GRU Airport, which operated in the first half of 2017 through a temporary contract, until it was replaced in July of that year by another company, still in the ramp-up phase. The events highlighted in the item Gross Tariff Revenue 3Q17 influence the 11.9% variation in 9M17. Regarding the performance of Non-Tariff Gross Revenue, its negative variation of 0.8% in 9M17 is mainly explained by the rescission with the advertising company, which has already been replaced by a new player. Page 4/9

5 3. COSTS & EXPENSES Costs and Expenses (MM) 3Q17 3Q16 9M17 9M16 Operating Costs and Expenses % -1, , % Personnel % % Conservation & Maintenance % % Operational % % Variable Grant % % Administrative Expenses % % Construction Cost (IFRS) % % Depreciation & Amortization % % Adjusted Operating Costs & Expenses % % ¹ Disregarding Depreciation & Amortization and the IFRS impacts in relation to Construction Cost 2 Considers the accounting of TECA-TECA Rebalancing Revenues as of 4Q16 Operating Costs and Expenses decreased by R$ 29.4 million in 3Q17, or 7.6% less than the same quarter in the previous year. Construction Cost represents a reduction of R$ 20.5 million, when it ceased to be established in 2017 due to the lower investment curve compared to the previous year. The decrease in Operating Costs and Expenses also includes the following factors: (i) Personnel: a reduction of R$ 8.7 million compared to 3Q16, which is a reflection of the organizational restructuring carried out starting in 3Q16 and 1Q17; (ii) energy expenses, which after migration to the purchase of energy on the free market brought a significant decrease in electricity rates, representing a positive variation of R$ 7 million compared to 3Q16; (iv) contingencies in the engagement of advisory/consulting services, as well as moving communication services to in-house departments, which resulted in a favorable variation of R$ 6.5 million over the same period in the previous year. Additionally, regarding administrative expenses, there was a favorable variation in the Condominium Reimbursement, explained by the readjustment in the cost table to the assignees. Under the caption Other Revenues, verified the credit related to the deferred TECA-TECA Rebalancing revenue, accounted for only as of 4Q16, after partial recognition of the Concessionary's claim by means of Decision No. 191 published in the Official Journal of the Union on December 23, 2016 by ANAC and (v) Variable Grant, whose increase of 8.4% follows the growth of Net Revenue. In addition to the highlighted events, the caption Conservation and Maintenance recorded a 4.2% decrease in 9M17, influenced by the unification of the cleaning contracts and the scope review of the maintenance contract for green areas in addition to the review of other maintenance contracts, which occurred between December 2016 and January 2017, contributing to a reduction of 10.5% in Costs and Expenses in the nine-month period of Page 5/9

6 4. EBITDA & EBITDA MARGIN EBITDA and EBITDA Margin (MM) 3Q17 3Q16 9M17 9M16 EBIT % % (+) Depreciation & Amortization % % EBITDA % % Adjustments % % (-) Construction Revenue (IFRS) % % (+) Construction Cost (IFRS) % % Adjusted EBITDA % % Adjusted Net Revenue % 1, , % Adjusted EBITDA Margin (%) 64.6% 57.7% 6.9 p.p 63.3% 56.9% 6.3 p.p. ¹CVM Instruction 527/12; ²Disregarding the impacts of IFRS in relation to Revenue and Cost and Construction; Variation in Adjusted EBITDA Adjusted EBITDA 3Q16 (+) Adjusted Net Revenue (-) Adjusted Operating Costs and Expenses Adjusted EBITDA 3Q17 The Adjusted EBITDA of R$ million in 3Q17 represents a growth of 21.4% over the same period of Among the main contributions to growth, the caption Adjusted Net Revenue contributes to the EBITDA growth and its favorable performance comes mainly from tariff revenues which, in addition to the annual tariff readjustment, was also impacted by the growth in the number of international passengers and the increase in the cargo volume. Adjusted Operating Costs and Expenses also presented a favorable variation, influenced by the reduction of expenses with electricity, organizational restructuring and contingency plan in the engagement of advisory firms. 5. FINANCIAL INCOME (LOSS) Financial Income (Loss) 3Q17 3Q16 9M17 9M16 Financial income % % Financial expenses % , % Financial income (loss) % , % The favorable variation of R$ 35.5 million in the Company's Net Financial Income in 3Q17 in relation to 3Q16 includes the reduction in financial expenses arising from the monetary updating of the Fixed Grant by the Extended National Consumer Price Index (IPCA), which in the third quarter of 2017 was 0.53% (accumulated in the third quarter), while it was 1.04% in the same period of 2016, representing a reduction of 0.51 pp. In 9M17, Page 6/9

7 the favorable variation of R$ million is also influenced by the financial expenses of the Fixed Grant impacted by the IPCA 3.67 pp below the same period of the previous year. 6. NET INCOME (LOSS) Net Income (Loss) 3Q17 3Q16 9M17 9M16 Income/Loss for the Year % % Variation in Income/Loss for the Year (142.4) (284.0) 51.9 (7.9) 35.5 Income/Loss for the Year 3Q16 (+) Adjusted EBITDA (-) Depreciation and Amortization (+) Financial Income (Loss) 62.1 (+) Income and Social Contribution Taxes Income/Loss for the Year 3Q17 In 3Q17, the Company presented a negative net income of R$ million, which corresponds to a favorable variation of 49.8% in relation to the same period of the previous year, as a result of (i) the increase of R$ 51.9 million in the Adjusted EBITDA, showing the reduction in Costs and Expenses and the increase in Adjusted Net Revenue; (ii) the increase of R$ 7.9 million in the caption Depreciation & Amortization as a result of investments made as of 2016, and the beginning of depreciation/amortization of fixed assets in 2017, that were still in progress in 2016; (iii) the favorable variation of R$ 35.5 million in the Company's Financial Result arising from the reduction of financial expenses of the fixed grant monetarily updated by the IPCA, whose rate in 3Q17 was 0.51 pp lower than 3Q16, and (iv) the variation of R$ 62.1 in Deferred Income and Social Contribution Taxes, impacted by the reduction of tax losses. 7. FUNDS AVAILABLE & INDEBTNESS Cash and cash equivalents and Indebtedness (MM) 9M17 9M16 Gross Debt 3, , % Short term % Long-term 2, , % Debentures % Funds Available % Cash and Cash Equivalents % Financial Investments % Net Debt 3, , % In the 12-month period ended in 3Q17, Gross Debt increased 2.3% in relation to the same period of the previous year, partly due to FINEM releases of approximately R$ 77 million and interest on debentures. The significant Page 7/9

8 variation in the caption Current represents the reclassification of long-term FINEM amounts to the short-term, due to the start of amortization of the Sub-Credit A that occurred as of July Regarding Funds Available, the increase of R$ 145 million in the third quarter of 2017 in relation to the same period of the previous year is mainly due to a Bank Deposit Certificate assignment celebrated in 2017 to the insurer Pottencial as a warranty to the guaranteed insurance policy. 8. INVESTMENTS Investments (MM) 9M17 9M16 Total Investment 18, , % Fixed Assets (Gross) % Intangible Assets (Gross) 18, , % Software and Other 4, , % Concession Right (Investments) 14, , % (-) Non-cash Transaction % (-) Construction Margin % *Amounts referring to the base date of each period Investments made in 9M17 totaled R$ 204 million and represent a 1% increase compared to December The monetary restatement of the Fixed Grant represents the main variation and, in addition, major investments in progress should be highlighted, such as: (i) Sustaining Works; (ii) Revitalization of the 09L/27R runway and (iii) expansion of the parking lot enlarging the offer of parking spaces, and (iii) safety equipment installed throughout the airport perimeter, increasing surveillance capacity. 9. CONSIDERATIONS The GRU Airport concession contract provides for the payment of a fixed contribution, called Grant, to the Federal Government in 20 annual installments payable in July of each year. In response to the request for rescheduling the contribution payment flow, the Concessionaire obtained, through Technical Note No. 11 (SEI)/2017/ SRA of ANAC, an authorization to renegotiate the Fixed Grant in order to (i) anticipate, in December 2017, a portion of the contribution of the following year; (ii) in July 2018, make partial payment of the contribution and rescheduling balance equivalent to the advance contribution in December 2017; (iii) between 2019 and 2030, pay the Fixed Contribution according to the amounts originally provided for in the Concession Contract; (iv) in 2031 and 2032, in addition to the amount of the originally contracted contribution, the payment of the Fixed Grant rescheduling balance is expected. 10. SUBSEQUENT EVENT On October 16, 2017, the Concessionaire paid interest and amortization of the long-term financing loans in the amount of R$ 26,678, of which R$ 18,554 to BNDES and R$ 8,124 to the onlending banks; Also on this date, the Concessionaire paid interest on Debentures in the amount of R$ 23,144; On October 31, 2017, the Concessionaire paid the 5th installment of the fixed grant in the amount of R$ 70,579. Page 8/9

9 11. GLOSSARY For a better understanding, find below definitions of the acronyms used throughout this material: TPS1 Terminal 1; TPS2 Terminal 2; TPS3 Terminal 3; TECA Cargo Terminal; PAX Passengers; EDG Multi-storey car park located in TPS3; RESA Runway End Safety Area; Adjusted Net Revenue Net Revenue disregarding impacts of IFRS in relation to construction Revenue; Adjusted EBITDA Disregard the impacts of IFRS in relation to revenue and construction costs; Adjusted Income Managerial Income, excluding: Construction Margin; Provision for Maintenance; and other adjustments (e.g.: sale of assets); PMD Average Aircraft Weight; MTA - Total Aircraft Movements; Q Factor the quality factor that comprises the annual adjustment of airport tariffs applied by GRU Airport; ANAC The National Civil Aviation Agency (ANAC) is the body responsible for regulating and oversighting civil aviation and airport infrastructure activities in the country. Page 9/9