Grupo Aeroportuario del Pacifico Announces Results for the Fourth Quarter of 2021
GUADALAJARA, Mexico, Feb. 22, 2022 (GLOBE NEWSWIRE) -- Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP) (“the Company” or “GAP”) reported its consolidated results for the fourth quarter ended December 31, 2021 (4Q21) (passenger traffic and consolidated results tables for 2021 compared to 2019, in order to illustrate the recovery of these metrics and their trend, are set forth at the end of this report). *Figures are unaudited and have been prepared in accordance with International Financial Reporting Standards (“IFRS”)* as issued by the International Accounting Standards Board (“IASB”).*COVID-19 Impact*
During the fiscal year ended December 31, 2021, passenger traffic increased 57.1% as compared to the same period of 2020 and decreased 11.8% as compared to 2019, demonstrating a better-than-expected recovery. Having a highly diversified portfolio of airports allowed the recovery of traffic even though certain restrictions or additional requirements were maintained to travel in some countries during 2021. The foregoing allowed the results in fiscal year 2021 to grow compared to fiscal years 2019 and 2020, generating positive net cash flow over these years.
*Company measures during 4Q21:*
· The Company continued supporting commercial clients during the quarter by granting discounts on guaranteed minimum rent amounts in accordance with the percentage decrease in passenger traffic at each airport as compared to 4Q19. However, in most of the contracts it was not applied, since the percentage of participation in revenues was higher than the minimum rents. With regards to support for the airlines, the Company continued its incentive program in accordance with the reactivation of routes and frequencies that were held prior to the pandemic.· Operating cost control measures were maintained; however, because of the trend in passenger traffic during 4Q21, we have gradually increased certain costs such as maintenance, security, personnel, cleaning services and others related to the quality and travel experience of our passengers.*Impact of COVID-19 on the Company’s Financial Position:*
During 4Q21, results were significantly better as compared to 4Q20, with an increase in total revenues of 121.3% and an increase in cost of services of 38.2%. The Company generated positive EBITDA of Ps. 3,255.0 million, 84.2% over 4Q20.
In 4Q21, operating activities continued generating positive cash flow from operating activities for Ps. 3,524.5 million. The Company reported a financial position of cash and cash equivalents as of December 31, 2021, of Ps. 13,332.9 million (7.7% lower than the balance as of December 31, 2020). During 4Q21, the Company issued Ps. 2,500.0 million in long-term debt securities (Certificados Bursátiles) to finance the committed investments for our Mexican airports. Additionally, Ps. 637.7 million in share repurchases were made during 4Q21.
In 4Q21, the Company performed an assessment of the portfolio risk of our airlines and commercial clients in terms of liquidity. Because of this assessment, it was determined that no reserve provision for expected credit losses in costs of operation was necessary for this quarter due to the growth and recovery of our main airlines and commercial clients.
During 4Q21, the Company continued evaluating the possible adverse impacts of the pandemic on its financial condition and operating results. The Company also reviewed key indicators and impairment tests of significant long-term assets, expected credit losses and recovery of assets due to deferred taxes. In this evaluation, the Company reviewed financial results for the short, medium, and long term, concluding that a significant deterioration of the Company’s assets is not expected. As such, the Company does not foresee a business interruption or closing operations at any of its airports. However, the Company cannot ensure that the negative effect of the pandemic will continue decreasing in the coming quarter, nor can it ensure that local and global economic conditions will improve. The Company can also not predict the availability of financing, or what general credit conditions will be.
The Company will continue to monitor the pandemic’s adverse effects on the results of operations and will continue informing the market in a timely manner regarding future material updates on airport operations and the measures adopted for preserving liquidity and ensuring business continuity.
*Summary of Results 4Q21 vs. 4Q20 **(and 4Q19 for purposes of illustrating the recovery trend)**:*
· The sum of* aeronautical and non-aeronautical services revenues increased by Ps. 1,975.3 million, or 73.9% *(Ps. 915.6 million, or 24.5%, as compared to 4Q19). Total revenues increased by Ps. 2,844.0 million, or 121.3% (Ps. 614.3 million, or 13.4%, as compared to 4Q19).· *Cost of services increased by Ps. 243.6 million, or 38.2% *(as compared to 4Q19, cost of services increased Ps. 108.4 million, or 14.0%).· *Income from operations increased by Ps. 1,475.1 million, or 117.0% *(Ps. 801.6 million, or 41.4%, as compared to 4Q19).· *EBITDA increased by Ps. 1,488.4 million, or 84.2% *(Ps. 832.0 million, or 34.3%, as compared to 4Q19), going from Ps. 1,766.6 million in 4Q20 to Ps. 3,255.0 million in 4Q21. EBITDA margin (excluding the effects of IFRIC 12) increased from 66.2% in 4Q20 to 70.1% in 4Q21 (EBITDA margin (excluding the effects of IFRIC 12) was 65.0% in 4Q19).· *Net comprehensive income increased Ps. 2,265.2 million, or 736.5% *(Ps.922.9 million, or 89.2%, as compared to 4Q19), from a loss of Ps. 307.5 million in 4Q20 to income of Ps. 1,957.7 million in 4Q21.*Passenger Traffic*
During 4Q21, total passengers at the Company’s 14 airports increased by 4,543.3 thousand passengers, an increase of 55.3%, compared to 4Q20 (as compared to 4Q19, total passengers increased by 12.1 thousand passengers, or 0.1%). During 4Q21, the following new routes were opened:
*Domestic:*
*Airline* *Departure* *Arrival* *Opening date* *Frequencies*
TAR Hermosillo Monterrey October 1, 2021 3 weekly frequencies
TAR La Paz Culiacan October 19, 2021 3 weekly frequencies
TAR La Paz Puerto Vallarta October 19, 2021 3 weekly frequencies
TAR Hermosillo Puerto Vallarta October 19, 2021 3 weekly frequencies
^Note: Frequencies can vary without prior notice.
*International:*
*Airline* *Departure* *Arrival* *Opening date* *Frequencies*
Frontier Los Cabos Denver October 9, 2021 3 weekly frequencies
Frontier Montego Bay Atlanta November 1, 2021 3 weekly frequencies
American Airlines Puerto Vallarta Austin November 2, 2021 3 weekly frequencies
Frontier Montego Bay Orlando November 2, 2021 3 weekly frequencies
EW Discover Montego Bay Frankfurt November 3, 2021 2 weekly frequencies
Swoop Puerto Vallarta Toronto November 4, 2021 2 weekly frequencies
American Airlines Kingston Philadelphia November 4, 2021 3 weekly frequencies
Swoop Los Cabos Toronto December 4, 2021 1 weekly frequencie
Swoop Kingston Toronto December 4, 2021 2 weekly frequencies
Aeromexico Guadalajara Madrid December 15, 2021 3 weekly frequencies
Frontier Montego Bay Newark December 17, 2021 3 weekly frequencies
Swoop Puerto Vallarta Victoria December 19, 2021 1 weekly frequencie
^Note: Frequencies can vary without prior notice.
*Domestic Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
Guadalajara 1,777.8 2,542.0 43.0% 5,768.1 8,540.2 48.1%
Tijuana * 1,506.0 1,870.1 24.2% 4,597.3 6,891.3 49.9%
Los Cabos 430.7 575.0 33.5% 1,215.3 2,020.4 66.2%
Puerto Vallarta 319.0 554.3 73.7% 951.5 1,848.5 94.3%
Montego Bay 0.0 0.0 0.0% 1.0 0.0 (100.0%)
Guanajuato 329.5 404.4 22.7% 1,051.5 1,487.1 41.4%
Hermosillo 290.3 449.5 54.8% 939.4 1,457.9 55.2%
Mexicali 215.4 324.3 50.6% 690.9 1,088.4 57.5%
Morelia 118.1 146.9 24.3% 387.3 541.0 39.7%
La Paz 192.4 266.7 38.6% 566.5 901.8 59.2%
Kingston 0.1 0.2 100.0% 1.4 1.2 (14.0%)
Aguascalientes 110.7 178.1 60.9% 356.0 582.8 63.7%
Los Mochis 75.5 106.3 40.7% 211.2 358.3 69.6%
Manzanillo 14.9 25.7 73.2% 49.1 86.8 76.6%
*Total* *5,380.4* *7,443.5* *38.3**%* *16,786.6* *25,805.6* *53.7**%*
^*CBX users are classified as international passengers.
*International** Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
Guadalajara 711.4 1,059.5 48.9% 2,357.5 3,702.7 57.1%
Tijuana * 512.3 885.5 72.9% 1,719.3 2,786.6 62.1%
Los Cabos 589.5 1,067.1 81.0% 1,848.9 3,529.2 90.9%
Puerto Vallarta 354.8 813.6 129.3% 1,584.6 2,271.5 43.4%
Montego Bay 285.5 821.3 187.7% 1,609.6 2,581.9 60.4%
Guanajuato 102.5 184.6 80.1% 336.2 631.9 87.9%
Hermosillo 16.1 25.5 58.5% 44.8 102.1 127.7%
Mexicali 0.7 2.0 198.1% 2.3 5.6 142.7%
Morelia 81.9 113.2 38.2% 244.0 406.1 66.4%
La Paz 1.9 4.6 141.0% 6.6 18.3 177.1%
Kingston 133.6 262.5 96.5% 628.0 829.3 32.0%
Aguascalientes 41.6 58.6 40.9% 119.5 210.6 76.2%
Los Mochis 0.8 2.3 196.5% 2.4 9.4 286.9%
Manzanillo 4.5 16.8 270.8% 37.1 46.5 25.3%
*Total* *2,836.9* *5,317.0* *87.4**%* *10,541.0* *17,131.6* *62.5**%*
^*CBX users are classified as international passengers.
*Total Terminal Passengers **– 14 airports* *(in thousands)**:*
*Airport* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
Guadalajara 2,489.1 3,601.5 44.7% 8,125.6 12,243.0 50.7%
Tijuana * 2,018.2 2,755.6 36.5% 6,316.6 9,677.9 53.2%
Los Cabos 1,020.2 1,642.1 61.0% 3,064.2 5,549.6 81.1%
Puerto Vallarta 673.8 1,367.9 103.0% 2,536.1 4,120.0 62.5%
Montego Bay 285.5 821.3 187.7% 1,610.6 2,581.9 60.3%
Guanajuato 431.9 588.9 36.3% 1,387.7 2,119.0 52.7%
Hermosillo 306.4 475.0 55.0% 984.2 1,559.9 58.5%
Mexicali 216.0 326.3 51.0% 693.2 1,094.0 57.8%
Morelia 200.0 260.1 30.0% 631.3 947.1 50.0%
La Paz 194.3 271.3 39.6% 573.1 920.0 60.5%
Kingston 133.7 262.7 96.5% 629.4 830.5 31.9%
Aguascalientes 152.3 236.7 55.4% 475.6 793.4 66.8%
Los Mochis 76.3 108.6 42.3% 213.6 367.7 72.1%
Manzanillo 19.4 42.6 119.4% 86.2 133.3 54.6%
*Total* *8,217.3* *12,760.5* *55.3**%* *27,327.5* *42,937.2* *57.1**%*
^*CBX users are classified as international passengers.
*CBX (thousands)*
*Airport* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
Tijuana 507.8 876.1 72.5% 1,705.7 2,754.3 61.5%
*Consolidated Results for the Fourth Quarter of 2021 **(in thousands of pesos)**:* *4Q20* *4Q21* *Change*
*Revenues*
Aeronautical services 2,023,398 3,571,344 76.5%
Non-aeronautical services 650,490 1,077,886 65.7%
Improvements to concession assets (IFRIC-12) (329,479 ) 539,140 263.6%
*Total revenues* *2,344,408* *5,188,370* *121.3**%*
*Operating costs*
Costs of services: 638,350 881,966 38.2%
Employee costs 235,311 306,052 30.1%
Maintenance 130,976 206,595 57.7%
Safety, security & insurance 120,358 137,293 14.1%
Utilities 83,106 107,333 29.2%
Other operating expenses 68,599 124,693 81.8%
Technical assistance fees 89,858 155,717 73.3%
Concession taxes 193,414 359,403 85.8%
Depreciation and amortization 506,148 519,409 2.6%
Cost of improvements to concession assets (IFRIC-12) (329,479 ) 539,140 263.6%
Other (income) (14,361 ) (2,858 ) (80.1%)
*Total operating costs* *1,083,930* *2,452,777* *126.3**%*
*Income from operations* *1,260,478* *2,735,593* *117.0**%*
Financial Result (866,839 ) (328,381 ) (62.1%)
*Income before income taxes * *393,639* *2,407,212* *511.5**%*
Income taxes (53,228 ) (604,778 ) 1036.2%
*Net income * *340,411* *1,802,434* *429.5**%*
Currency translation effect (643,284 ) 55,056 108.6%
Cash flow hedges, net of income tax (9,355 ) 96,525 1131.8%
Remeasurements of employee benefit – net income tax 4,680 3,649 22.0%
*Comprehensive income * *(307,548* *)* *1,957,664* *(736.5**%)*
Non-controlling interest 90,102 (35,128 ) (139.0%)
*Comprehensive income attributable to controlling interest* *(217,446* *)* *1,922,536* *984.1**%* *4Q20* *4Q21* *Change*
EBITDA 1,766,625 3,255,002 84.2%
Comprehensive income (307,548 ) 1,957,664 (736.5%)
Comprehensive income per share (pesos) (0.5852 ) 3.8213 (753.0%)
Comprehensive income per ADS (US dollars) (0.2853 ) 1.8628 (753.0%)
Operating income margin 53.8 % 52.7 % (1.9%)
Operating income margin (excluding IFRIC-12) 47.1 % 58.8 % 24.8%
EBITDA margin 75.4 % 62.7 % (16.7%)
EBITDA margin (excluding IFRIC-12) 66.2 % 70.1 % 6.0%
Costs of services and improvements / total revenues 13.2 % 27.4 % 107.9%
Cost of services / total revenues (excluding IFRIC-12) 23.9 % 19.0 % (20.5%)
^- Net income and comprehensive income per share for 4Q21 were calculated based on 512,301,577 shares outstanding as of December 31, 2021, and for 4Q20 were calculated based on 525,575,547 shares outstanding as of December 31, 2020. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 20.5140 per U.S. dollar (the noon buying rate on December 30, 2021, as published by the U.S. Federal Reserve Board).
^- For purposes of the consolidation of the Montego Bay and Kingston airports, the average three-month exchange rate of Ps. 20.7468 per U.S. dollar for the three months ended December 31, 2021, was used.
*Revenues (4Q21 vs. 4Q20)*· *Aeronautical services revenues increased by Ps. 1,547.9 million, or 76.5%.*
· *Non-aeronautical services revenues increased by Ps. 427.4 million, or 65.7%.*
· *Revenues from improvements to concession assets increased by Ps. 868.6 million, or 263.6%.*
· *Total revenues increased by Ps. 2,844.0 million, or 121.3%.
*
· The change in* aeronautical services revenues *was composed primarily of the following factors:
1. Revenues at the Company’s Mexican airports increased by Ps. 1,277.0 million or 69.5% compared to 4Q20, mainly as a result of the 49.7% increase in passenger traffic and the adjustment in maximum tariffs. 2. Revenues from the *Montego Bay airport* increased by Ps. 206.1 million, or 192.9%, compared to 4Q20. This was mainly due to the 187.7% increase in passenger traffic. During 4Q21, there was a 0.6% depreciation of the peso versus the U.S. dollar, which went from an average exchange rate of Ps. 20.6308 in 4Q20 to Ps. 20.7468 in 4Q21. 3. Revenues from the *Kingston airport* increased by Ps. 64.8 million, or 81.2% compared to 4Q20, mainly due to a 96.5% increase in passenger traffic and the depreciation of the peso versus the dollar during 4Q21.
· The change in* non-aeronautical services revenues *was composed primarily of the following factors:
1. The Company’s revenues from its *Mexican airports *increased by Ps. 348.2 million, or 63.3%, compared to 4Q20. Revenues from businesses operated by third parties increased by Ps. 230.9 million. This was mainly due to the recovery of passenger traffic that resulted in execution of revenue share of the clients’ revenues, which was higher than the minimum rental guarantee. The business lines that increased the most were food and beverage, duty-free stores, leasing of space, car rentals, time shares and ground transportation, which jointly increased by Ps. 213.7 million, or 72.6%. Revenues from businesses operated directly by the Company increased by Ps. 109.7 million, or 73.6%, while the recovery of costs increased by Ps. 7.6 million, or 23.8%. 2. Revenues from the *Montego Bay airport* increased by Ps. 65.5 million, or 91.9%, compared to 4Q20. Revenues in U.S. dollars increased by US$ 3.1 million, or 90.9%. 3. Revenues from the *Kingston airport* increased by Ps. 13.6 million, or 47.0%, compared to 4Q20. Revenues in U.S. dollars increased by US$ 0.6 million, or 46.2%. *4Q20* *4Q21* *Change* *Businesses operated by third parties:* Duty-free 80,685 161,459 100.1% Food and beverage 83,117 149,840 80.3% Retail 67,102 116,054 73.0% Car rentals 75,055 113,535 51.3% Leasing of space 54,267 67,052 23.6% Time shares 28,595 54,519 90.7% Ground transportation 27,442 42,902 56.3% Communications and financial services 15,647 19,482 24.5% Other commercial revenues 23,118 36,071 56.0% *Total* *455,027* *760,913* *67.2**%* *Businesses operated directly by us:* Car parking 74,499 114,784 54.1% VIP lounges 32,323 74,314 129.9% Advertising 21,752 19,548 (10.1%) Convenience stores 25,224 56,902 125.6% *Total* *153,797* *265,547* *72.7**%* Recovery of costs 41,663 51,424 23.4% *Total Non-aeronautical Revenues * *650,490* *1,077,886* *65.7**%* ^Figures expressed in thousands of Mexican pesos.
· *Revenues from improvements to concession assets*^1
Revenues from improvements to concession assets (IFRIC 12) increased by Ps. 868.6 million, or 263.6%, compared to 4Q20. The change was composed primarily of:
1. The Company’s Mexican airports increased by Ps. 921.1 million, or 219.7%, as a result of the adjustment in committed investments in the Master Development Program for the 2020-2024 period.2. Decrease in improvements to concession assets at the Montego Bay and Kingston airports of Ps. 1.1 million, or 2.9% and Ps. 51.4 million, or 100.0%, respectively.________________________
^[1] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.*
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*Total operating costs* increased by Ps. 1,368.8 million, or 126.3%, compared to 4Q20, mainly due to a Ps. 868.6 million, or 263.6%, increase in the cost of improvements to the concession assets (IFRIC 12), a Ps.231.9 million, or 81.8%, increase in concession taxes and technical assistance fees, and a Ps. 243.6 million, or 38.2% increase in cost of services *(excluding the cost of improvements to concession assets, operating costs increased Ps. 500.2 million, or 35.3%).*
This increase in total operating costs was composed primarily of the following factors:
*Mexican Airports: *
· Operating costs *increased by Ps. 1,307.2 million, or 204.9%,* compared to 4Q20, primarily due to a Ps. 921.1 million, or 219.7%, increase in the cost of improvements to the concession assets (IFRIC 12), a Ps. 224.1 million, or 46.2%, increase in cost of services, a combined Ps. 139.4 million, or 66.8%, increase in technical assistance fees and concession taxes and a Ps. 16.2 million, or 4.3%, increase in depreciation and amortization *(excluding the cost of improvements to the concession assets (IFRIC-12), operating costs increased by Ps. 386.1 million or 36.5%)*.The change in the cost of services during 4Q21 was mainly due to:
· *Maintenance costs *increased by Ps. 67.1 million, or 61.7%, compared to 4Q20.
· *Other operating expenses *increased Ps. 63.4 million or 128.0%, compared to 4Q20, mainly due to a combined increase of Ps. 83.7 million in the cost of goods and services for our VIP lounges and convenience stores, FBO services and travel expenses. This increase was partially offset by a Ps. 21.5 million combined decrease in the allowance for credit losses, sanitation supplies, and the purchase of supplies and donations for the medical sector for the prevention of COVID-19.
· *Employee costs* increased Ps. 61.9 million, or 32.2%, compared to 4Q20, mainly due to the recognition of labor provisions in accordance with the Labor Reform and the hiring of additional personnel as required for airport operations due to the recovery of passenger traffic.
· *Safety, security and insurance costs* increased Ps. 20.4 million, or 25.2%, compared to 4Q20, mainly due to an increase in the number of security staff as compared when the partial closure of some operating areas reduced the need for personnel in 4Q20.
*Montego Bay Airport:*
· *Operating costs increased by Ps. 58.2 million, or 21.3%,* compared to 4Q20, mainly due to a Ps. 36.9 million, or 228.8% increase in concession taxes, a Ps. 20.0 million, or 21.5% increase in the cost of services and a Ps. 5.7 million increase in other expenses. This increase was partially offset by a Ps. 1.1 million, or 2.9%, decrease in the cost of improvements to concession assets (IFRIC 12), and a Ps. 3.3 million, or 2.6%, decrease in depreciation and amortization.*Kingston Airport:*
· *Operating costs increased by Ps. 3.4 million, or 2.0%,* compared to 4Q20, mainly due to a Ps. 55.6 million, or 95.0% increase in concession taxes and partially offset by a Ps. 51.4 million decrease in the cost of improvements to concession assets (IFRIC-12).*Operating margin* went from 53.8% in 4Q20 to 52.7% in 4Q21. Excluding the effects of IFRIC-12, operating margin went from 47.1% in 4Q20 to 58.8% in 4Q21. Operating income increased Ps. 1,475.1 million, or 117.0%, compared to 4Q20.
*EBITDA margin *went from 75.4% in 4Q20 to 62.7% in 4Q21. Excluding the effects of IFRIC-12, EBITDA margin went from 66.2% in 4Q20 to 70.1% in 4Q21. *The nominal value of EBITDA increased Ps. 1,488.4 million, or 84.2%, *compared to 4Q20.
· *Financial cost* decreased by *Ps. 538.5 million, or 62.1%, *from a net expense of Ps. 866.8 million in 4Q20 to a net expense of Ps. 328.4 million in 4Q21. This change was mainly the result of *foreign exchange rate fluctuations, *which went from an expense of Ps. 529.9 million in 4Q20 to income of Ps. 33.1 million in 4Q21. This *generated an increase in the foreign exchange gain of Ps. 563.0 million.* The currency translation effect income increased Ps. 698.3 million, compared to 4Q20.· *Interest expenses increased by Ps. 65.4 million, or 16.2%, *compared to 4Q20, mainly due to higher debt, as a result of the issuance of long-term debt securities.· *Interest income increased by Ps. 40.9 million, or 60.5%, *compared to 4Q20, mainly due to an increase in the reference interest rates.*In 4Q21, comprehensive income increased Ps. 2,265.2 million, or 736.5%,* compared to 4Q20. This increase was mainly due to a Ps. 2,013.6 million increase in earnings before taxes derived from the significant increase in passenger traffic, as well as a Ps. 698.3 million increase in currency translation effect. This increase was partially offset by an increase in income taxes of Ps. 551.5 million.
*During 4Q21, net income increased by Ps. 1,462.0 million, or 429.5%*, compared to 4Q20. Income taxes increased by Ps. 773.4 million, partially offset by the benefit for deferred taxes by Ps. 221.8 million, mainly due to the application of Ps. 60.2 million in tax losses and an increase in the inflation rate, from 1.0% in 4Q20 to 2.4% in 4Q21.
*Consolidated Results for the Twelve Months Ended December 31 **(in thousands of pesos)**: *
*2020* *2021* *Change*
*Revenues*
Aeronautical services 7,225,742 11,983,954 65.9%
Non-aeronautical services 2,448,053 3,662,441 49.6%
Improvements to concession assets (IFRIC-12) 2,192,578 3,368,511 53.6%
*Total revenues* *11,866,373* *19,014,906* *60.2**%*
*Operating costs*
Costs of services: 2,668,707 2,989,631 12.0%
Employee costs 970,481 1,115,750 15.0%
Maintenance 426,523 546,548 28.1%
Safety, security & insurance 458,316 510,440 11.4%
Utilities 355,562 391,836 10.2%
Other operating expenses 457,825 425,057 (7.2%)
Technical assistance fees 289,154 526,220 82.0%
Concession taxes 908,310 1,231,044 35.5%
Depreciation and amortization 2,000,361 2,050,539 2.5%
Cost of improvements to concession assets (IFRIC 12) 2,192,578 3,368,511 53.6%
Other expense (income) (12,726 ) (8,231 ) (35.3%)
*Total operating costs* *8,046,384* *10,157,714* *26.2**%*
*Income from operations* *3,819,989* *8,857,192* *131.9**%*
Financial Result (1,434,222 ) (1,027,929 ) (28.3%)
*Income before income taxes * *2,385,770* *7,829,263* *228.2**%*
Income taxes (467,067 ) (1,785,546 ) 282.3%
*Net income * *1,918,703* *6,043,717* *215.0**%*
Currency translation effect 580,308 30,810 (94.7%)
Cash flow hedges, net of income tax (299,013 ) 500,765 (267.5%)
Remeasurements of employee benefit – net income tax (16,658 ) 15,263 191.6%
*Comprehensive income* *2,183,340* *6,590,555* *201.9**%*
Non-controlling interest (18,701 ) (80,248 ) (329.1%)
*Comprehensive income attributable to controlling interest* *2,164,639* *6,510,307* *200.8**%* *2020* *2021* *Change*
EBITDA 5,820,350 10,907,731 87.4%
Comprehensive income 2,183,340 6,590,555 201.9%
Comprehensive income per share (pesos) 4.1542 12.8646 209.7%
Comprehensive income per ADS (US dollars) 2.0251 6.2711 209.7%
Operating income margin 32.2 % 46.6 % 44.7%
Operating income margin (excluding IFRIC-12) 39.6 % 56.6 % 43.0%
EBITDA margin 49.0 % 57.4 % 17.0%
EBITDA margin (excluding IFRIC-12) 60.2 % 69.7 % 15.9%
Costs of services and improvements / total revenues 41.0 % 33.4 % (18.4%)
Cost of services / total revenues (excluding IFRIC-12) 27.6 % 19.1 % (30.7%)
^- Net income and comprehensive income per share for the twelve-month period ended December 31, 2021 were calculated based on 512,301,577 shares outstanding as of December 31, 2021 and for the twelve-month period ended December 31, 2020 were calculated based on 525,575,547 shares outstanding as of December 31, 2020. U.S. dollar figures presented were converted from pesos to U.S. dollars at a rate of Ps. 20.5140 per U.S. dollar (the noon buying rate on December 30, 2021, as published by the U.S. Federal Reserve Board).
^- For purposes of the consolidation of the Montego Bay and Kingston airports, the average twelve-month exchange rate of Ps. 20.2813 per U.S. dollar for the twelve months ended December 31, 2021 was used.
*Revenues (January to December 2021 vs January to December 2020)*
· *Aeronautical services revenues increased by Ps. 4,758.2 million, or 65.9%.*
· *Non-aeronautical services revenues increased by Ps. 1,214.4 million, or 49.6%.*
· *Revenues from improvements to concession assets increased by Ps. 1,175.9 million, or 53.6%.*
· *Total revenues increased by Ps. 7,148.5 million, or 60.2%.
*
· The change in* aeronautical services revenues *was composed of the following factors:
1. Revenues at the Company’s *Mexican airports* increased by Ps. 4,304.5 million or 69.7% during the period from January to December 2021, mainly as a result of the 57.5% increase in passenger traffic and the increase in the maximum tariffs applicable for 2021. 2. Revenues from the *Montego Bay airport* increased by Ps. 308.2 million, or 44.3%, compared to 2020. This was mainly due to the 60.3% increase in passenger traffic and partially offset by the 5.6% appreciation of the peso versus the U.S. dollar during 2021. 3. Revenues from the *Kingston airport* increased by Ps. 145.5 million, or 41.1% compared to 2020, mainly due to a 31.9% increase in passenger traffic and partially offset by the appreciation of the peso versus the dollar during 2021.
· The change in* non-aeronautical services revenues *was composed primarily of the following factors:
1. Revenues from the Company’s *Mexican airports *increased by Ps. 1,066.0 million, or 53.5%, compared to 2020. Revenues from businesses operated by third parties increased by Ps. 777.9 million, or 59.5%. This was mainly due to the recovery of passenger traffic that resulted in the execution of revenue share of the clients’ revenues, which was higher than the minimum rental guarantee, as well the opening of new commercial areas in some airports. The business lines that increased the most were food and beverage, duty-free stores, leasing of space, car rentals, time shares and other commercial income, which jointly increased by Ps. 701.4 million, or 70.8%. Revenues from businesses operated directly by the Company increased by Ps. 274.4 million, or 49.8%. This increase was primarily due to an increase in revenue from parking, convenience stores and VIP lounges, which jointly increased Ps. 307.3 million and was partially offset by a Ps. 32.9 million decrease in revenues from advertising. The recovery of costs increased by Ps. 13.7 million, or 10.3%. 2. Revenues from the *Montego Bay airport* increased by Ps. 127.4 million, or 38.9%, compared to 2020, primarily due to the increase in passenger traffic in 60.3%. 3. The consolidation of the *Kingston airport* contributed an increase of Ps. 21.0 million, or 16.3%, to non-aeronautical services revenues as compared to 2020, primarily due to the recovery in passenger traffic. *2020* *2021* *Change* *Businesses operated by third parties:* Duty-free 312,473 537,065 71.9% Food and beverage 304,758 517,254 69.7% Retail 253,780 401,617 58.3% Car rentals 283,283 401,589 41.8% Leasing of space 207,776 242,892 16.9% Time shares 102,750 189,196 84.1% Ground transportation 96,836 140,707 45.3% Communications and financial services 63,656 80,683 26.7% Other commercial revenues 78,794 118,748 50.7% *Total* *1,704,106* *2,629,750* *54.3**%* *Businesses operated directly by us:* Car parking 234,553 388,106 65.5% VIP lounges 144,897 219,498 51.5% Advertising 88,857 53,217 (40.1%) Convenience stores 102,052 185,338 81.6% *Total* *570,359* *846,158* *48.4**%* Recovery of costs 173,587 186,532 7.5% *Total Non-aeronautical Revenues * *2,448,053* *3,662,441* *49.6**%* ^Figures expressed in thousands of Mexican pesos.
· *Revenues from improvements to concession assets*^2
Revenues from improvements to concession assets (IFRIC-12) increased by Ps. 1,175.9 million, or 53.6%, compared to 2020, mainly comprised of the following:
1. Revenues from improvements to concession assets at the Company’s Mexican airports increased by Ps. 1,272.9 million, or 63.6%, as a result of the increase in committed investments in the Master Development Program for the 2020-2024 period.2. Decrease in the revenues from improvements to concession assets at the Montego Bay airport by Ps. 45.6 million, or 32.8% and the Kingston airport by Ps. 51.4 million.________________________
^[2] Revenues from improvements to concession assets are recognized in accordance with International Financial Reporting Interpretation Committee 12 “Service Concession Arrangements” (IFRIC 12), but this recognition does not have a cash impact or an impact on the Company’s operating results. Amounts included as a result of the recognition of IFRIC 12 are related to construction of infrastructure in each quarter to which the Company has committed in accordance with the Company’s Master Development Programs in Mexico and Capital Development Program in Jamaica. All margins and ratios calculated using “Total Revenues” include revenues from improvements to concession assets (IFRIC 12), and, consequently, such margins and ratios may not be comparable to other ratios and margins, such as EBITDA margin, operating margin or other similar ratios that are calculated based on those results of the Company that do have a cash impact.*Total operating costs* increased by Ps. 2,111.3 million, or 26.2%, compared to the same period of 2020, mainly due to a Ps. 1,175.9 million, or 53.6%, increase in the cost of improvements to the concession assets (IFRIC-12), a combined increase of concession taxes and technical assistance fees of Ps. 559.8 million, or 46.7%, and an increase in the cost of services of Ps. 321.0 million or 12.0%. *Excluding the cost of improvements to concession assets (IFRIC-12), operating costs increased Ps. 935.4 million, or 16.0%. *
*Mexican Airports: *
· Operating costs *increased by Ps. 2,196.1 million, or 35.7%,* compared to 2020, primarily due to a Ps. 1,272.9 million, or 63.6% increase in the cost of improvements to the concession assets (IFRIC-12), a Ps. 493.7 million, or 71.0% increase in concession taxes and technical assistance fees, a Ps. 75.2 million, or 5.1%, increase in depreciation and amortization and a Ps. 352.6 million, or 17.7% increase in the cost of services.The cost of services was mainly comprised of the following:
· *Employee costs* increased Ps. 144.6 million, or 18.6% compared to 2020, mainly due to the recognition of labor provisions in accordance with the Labor Reform and the hiring of additional personnel as required for airport operations.
· *Maintenance costs *increased by Ps. 121.2 million, or 36.3%, compared to 2020 as a result of the increase in essential maintenance as a result of the recovery in passenger traffic.
· *Safety, security and insurance costs* increased Ps. 67.7 million, or 22.5% compared to 2020.
· *Utility costs* increased Ps. 21.4 million, or 9.4% compared to 2020.
*Montego Bay Airport:*
· *Operating costs decreased by Ps. 100.8 million, or 8.1%,* compared to 2020, mainly due to a Ps. 45.6 million, or 32.8% decrease in the cost of improvements to concession assets (IFRIC-12), a Ps. 35.3 million, or 16.9% decrease in concession taxes, a Ps. 26.3 million, or 5.1% decrease in depreciation and amortization. This decrease was partially offset by a Ps. 2.8 million, or 0.7% increase in the cost of services.*Kingston Airport:*
· The *Kingston airport* contributed to an *increase in operating costs of Ps. 16.1 million, or 2.5%,* during 2021 as compared to 2020, mainly due to a Ps. 101.3 million, or 34.5% increase in concession taxes and partially offset by a Ps. 51.4 million decrease in the cost of improvements to concession assets (IFRIC-12), and a Ps. 34.4 million, or 12.3% decrease in the cost of services. The decrease in cost of services was primarily due to a Ps. 35.4 million, or 64.2%, decrease in *other operating costs, *as a result of a decrease in expected credit losses.*Operating margin* went from 32.2% in 2020 to 46.6% in 2021. Excluding the effects of IFRIC-12, operating margin went from 39.6% in 2020 to 56.6% in 2021. Operating income increased Ps. 5,037.2 million, or 131.9% compared to 2020.
*EBITDA margin *increased 840 basis points from 49.0% in 2020 to 57.4% in 2021. Excluding the effects of IFRIC-12, EBITDA margin increased 950 basis points from 60.2% in 2020 to 69.7% in 2021. *The nominal value of EBITDA was Ps. 10,907.7 million in 2021 *compared to Ps. 5,820.3 million during 2020, an increase of 87.4%.
*Financial cost* decreased by *Ps. 406.3 million, *from a net expense of Ps. 1,434.2 million during 2020 to a net expense of Ps. 1,027.9 million during 2021. This increase was mainly the result of:
· *Foreign exchange rate fluctuations *went from an expense of Ps. 330.4 million during 2020 to income of Ps. 238.3 million in 2021. This *generated an increase in the foreign exchange gain of Ps. 568.8 million.* Currency translation effect income decreased by Ps. 549.5 million as compared to 2020, due to the fact that the exchange rate as of December 31, 2020, was Ps. 19.9487 as compared to Ps. 20.5835 as of December 31, 2021, a depreciation of the peso of 3.2%.· An increase in *interest expenses of Ps. 172.2 million, or 10.5%, *compared to 2020 mainly due to higher debt as a result of the issuance of long-term debt securities during 2021.· *Interest income decreased by Ps. 9.7 million, or 2.3%, *compared to 2020, mainly due to a decrease in the average balance of cash and cash equivalents during 2021.*Comprehensive income increased Ps. 4,407.2 million*, or 201.9% compared to 2020. This increase was mainly due to a Ps. 5,443.5 million increase in earnings before taxes and a Ps. 799.8 million increase in the cash flow hedge reserve. This increase was partially offset by a Ps. 549.5 million decrease in currency translation effect and an increase in income taxes of Ps. 1,318.5 million.
*Net income increased* Ps. 4,125.0 million, or 215.0% during 2021 as compared to 2020. Mainly due the increase in earnings before taxes of Ps. 5,443.5 million, offset by an increase of Ps. 1,593.2 million in current income taxes and a Ps. 274.7 million increase in the benefit for deferred taxes, mainly due to the application of tax losses of Ps. 89.9 million and partially offset by an increase in the inflation rate, that went from 3.2% in 2020 to 7.4% during 2021.
*Statement of Financial Position*
Total assets as of December 31, 2021, increased by Ps. 3,961.9 million as compared to December 31, 2020, primarily due to the following items: (i) a Ps. 3,094.0 million increase in improvements to concession (ii) a Ps. 1,407.1 million increase in machinery, equipment and leasehold improvements and advances to suppliers; and (iii) a Ps. 208.7 million increase in other current assets. These increases were partially offset by decreases of Ps. 1,111.7 million in cash and cash equivalents, among others.
Total liabilities as of December 31, 2021, increased by Ps. 6,386.1 million compared to December 31, 2020. This increase was primarily due to the following items: (i) issuance of Ps. 5,500.0 million in long-term bonds; (ii) Ps. 1,880.4 million increase in accounts payable, (iii) increase income taxes of Ps. 1,241.0 million and (iv) increase of concession taxes of Ps. 154.3 million. This was partially offset by decreases of: (i) Ps. 2,000.0 million in bank loans, (ii) Ps. 590.5 million in derivative financial instruments and (iii) Ps. 170.2 million in deferred taxes, among others.
*Company Description*
Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAP) operates 12 airports throughout Mexico’s Pacific region, including the major cities of Guadalajara and Tijuana, the four tourist destinations of Puerto Vallarta, Los Cabos, La Paz and Manzanillo, and six other mid-sized cities: Hermosillo, Guanajuato, Morelia, Aguascalientes, Mexicali and Los Mochis. In February 2006, GAP’s shares were listed on the New York Stock Exchange under the ticker symbol “PAC” and on the Mexican Stock Exchange under the ticker symbol “GAP”. In April 2015, GAP acquired 100% of Desarrollo de Concesiones Aeroportuarias, S.L., which owns a majority stake in MBJ Airports Limited, a company operating Sangster International Airport in Montego Bay, Jamaica. In October 2018, GAP entered into a concession agreement for the operation of the Norman Manley International Airport in Kingston, Jamaica and took control of the operation in October 2019.
This press release contains references to EBITDA, a financial performance measure not recognized under IFRS and which does not purport to be an alternative to IFRS measures of operating performance or liquidity. We caution investors not to place undue reliance on non-GAAP financial measures such as EBITDA, as these have limitations as analytical tools and should be considered as a supplement to, not a substitute for, the corresponding measures calculated in accordance with IFRS.
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.
In accordance with Section 806 of the Sarbanes-Oxley Act of 2002 and article 42 of the “Ley del Mercado de Valores”, GAP has implemented a *“whistleblower”* program, which allows complainants to anonymously and confidentially report suspected activities that may involve criminal conduct or violations. The telephone number in Mexico, facilitated by a third party that is in charge of collecting these complaints, is 01 800 563 00 47. The web site is www.lineadedenuncia.com/gap. GAP’s Audit Committee will be notified of all complaints for immediate investigation.*Exhibit A: Operating results by airport **(in thousands of pesos):*
*Airport* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
*Guadalajara*
Aeronautical services 616,720 931,617 51.1% 2,103,574 3,296,419 56.7%
Non-aeronautical services 165,172 194,625 17.8% 591,789 783,252 32.4%
Improvements to concession assets (IFRIC 12) (162,341 ) 618,541 (481.0%) 614,479 1,463,854 138.2%
*Total Revenues* *619,550* *1,744,783* *181.6**%* *3,309,843* *5,543,525* *67.5**%*
Operating income 476,442 726,471 52.5% 1,472,456 2,614,203 77.5%
*EBITDA* *570,020* *824,268* *44.6**%* *1,841,420* *3,004,596* *63.2**%*
*Tijuana*
Aeronautical services 386,053 598,630 55.1% 1,192,187 1,944,451 63.1%
Non-aeronautical services 101,604 116,129 14.3% 335,419 431,706 28.7%
Improvements to concession assets (IFRIC 12) 251,975 (344,806 ) (236.8%) 681,755 876,292 28.5%
*Total Revenues* *739,632* *369,952* *(50.0**%)* *2,209,360* *3,252,448* *47.2**%*
Operating income 305,640 457,399 49.7% 802,056 1,496,257 86.6%
*EBITDA* *371,574* *520,735* *40.1**%* *1,056,690* *1,751,728* *65.8**%*
*Los Cabos*
Aeronautical services 302,097 599,211 98.4% 971,021 2,003,087 106.3%
Non-aeronautical services 131,607 236,312 79.6% 460,939 839,580 82.1%
Improvements to concession assets (IFRIC 12) (147,818 ) 186,589 (226.2%) 339,231 520,812 53.5%
*Total Revenues* *285,886* *1,022,112* *257.5**%* *1,771,191* *3,363,479* *89.9**%*
Operating income 256,497 594,497 131.8% 756,630 1,961,757 159.3%
*EBITDA* *322,814* *662,131* *105.1**%* *1,022,211* *2,223,223* *117.5**%*
*Puerto Vallarta*
Aeronautical services 188,780 442,359 134.3% 776,424 1,336,177 72.1%
Non-aeronautical services 61,282 105,730 72.5% 266,442 389,823 46.3%
Improvements to concession assets (IFRIC 12) (274,094 ) 52,217 (119.1%) 67,026 285,667 326.2%
*Total Revenues* *(24,031* *)* *600,306* *(2598.0**%)* *1,109,892* *2,011,667* *81.2**%*
Operating income 110,257 359,079 225.7% 526,761 1,082,157 105.4%
*EBITDA* *153,566* *403,118* *162.5**%* *695,340* *1,258,720* *81.0**%*
*Montego Bay*
Aeronautical services 106,876 313,013 192.9% 695,879 1,004,076 44.3%
Non-aeronautical services 71,295 136,844 91.9% 327,158 454,519 38.9%
Improvements to concession assets (IFRIC 12) 38,394 37,263 (2.9%) 138,768 93,205 (32.8%)
*Total Revenues* *216,565* *487,119* *124.9**%* *1,161,805* *1,551,800* *33.6**%*
Operating (loss) income (55,974 ) 160,702 387.1% (88,901 ) 406,256 557.0%
*EBITDA* *71,228* *284,621* *299.6**%* *423,197* *892,070* *110.8**%*
*Exhibit A: Operating results by airport **(in thousands of pesos): *(continued)
*Airport* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
*Guanajuato*
Aeronautical services 100,799 157,213 56.0% 338,633 570,402 68.4%
Non-aeronautical services 29,389 31,241 6.3% 113,826 131,977 15.9%
Improvements to concession assets (IFRIC 12) (61,075 ) (334 ) (99.5%) 36,334 8,947 (75.4%)
*Total Revenues* *69,114* *188,120* *172.2**%* *488,793* *711,326* *45.5**%*
Operating (loss) income 65,149 110,114 69.0% 216,044 416,623 92.8%
*EBITDA* *83,699* *129,752* *55.0**%* *288,406* *492,584* *70.8**%*
*Hermosillo*
Aeronautical services 64,405 106,590 65.5% 204,650 341,493 66.9%
Non-aeronautical services 17,327 16,523 (4.6%) 64,609 70,135 8.6%
Improvements to concession assets (IFRIC 12) 6,287 4,124 (34.4%) 19,329 17,148 (11.3%)
*Total Revenues* *88,018* *127,237* *44.6**%* *288,588* *428,776* *48.6**%*
Operating (loss) income 28,329 52,727 (86.1%) 57,770 155,691 169.5%
*EBITDA* *47,548* *71,085* *49.5**%* *134,100* *231,511* *72.6**%*
*Others* (1)
Aeronautical services 257,708 422,712 64.0% 943,415 1,487,850 57.7%
Non-aeronautical services 72,770 86,054 18.3% 287,828 343,913 19.5%
Improvements to concession assets (IFRIC 12) (32,208 ) (14,454 ) (55.1%) 295,658 102,587 (65.3%)
*Total Revenues* *298,271* *494,312* *65.7**%* *1,526,901* *1,934,351* *26.7**%*
Operating (loss) income 29,366 116,191 (295.7%) (30,745 ) 305,253 1092.9%
*EBITDA* *91,161* *181,645* *99.3**%* *210,022* *574,931* *173.7**%*
*Total *
Aeronautical services 2,023,439 3,571,344 76.5% 7,225,742 11,983,954 65.9%
Non-aeronautical services 650,446 923,457 42.0% 2,448,053 3,444,905 40.7%
Improvements to concession assets (IFRIC 12) (380,879 ) 539,140 (241.6%) 2,192,578 3,368,511 53.6%
*Total Revenues* *2,293,005* *5,033,942* *119.5**%* *11,866,373* *18,797,372* *58.4**%*
Operating income 1,215,707 2,577,180 112.0% 3,712,071 8,438,197 127.3%
*EBITDA* *1,711,609* *3,077,354* *79.8**%* *5,671,387* *10,429,363* *83.9**%*
^(1) Others include the operating results of the Aguascalientes, La Paz, Los Mochis, Manzanillo, Mexicali, Morelia and Kingston airports.
*Exhibit B: Consolidated statement of financial position as of December 31 **(in thousands of pesos)**:* *2020* *2021* *Change * *%*
*Assets*
Current assets
Cash and cash equivalents 14,444,549 13,332,877 (1,111,672 ) (7.7%)
Trade accounts receivable - Net 1,266,005 1,720,475 454,469 35.9%
Other current assets 1,135,555 1,344,223 208,668 18.4%
*Total current assets* *16,846,109* *16,397,575* *(448,534* *)* *(2.7**%)*
Advanced payments to suppliers 464,675 923,795 459,120 98.8%
Machinery, equipment and improvements to leased buildings - Net 2,146,232 3,094,220 947,988 44.2%
Improvements to concession assets - Net 13,763,840 16,857,852 3,094,012 22.5%
Airport concessions - Net 10,649,220 10,328,521 (320,699 ) (3.0%)
Rights to use airport facilities - Net 1,281,801 1,208,406 (73,395 ) (5.7%)
Deferred income taxes - Net 5,966,363 6,230,886 264,523 4.4%
Other non-current assets 242,933 281,830 38,898 16.0%
*Total assets* *51,361,173* *55,323,085* *3,961,912* *7.7**%*
*Liabilities *
Current liabilities 5,262,675 9,362,958 4,100,283 77.9%
Long-term liabilities 23,245,715 25,531,527 2,285,812 9.8%
*Total liabilities* *28,508,390* *34,894,485* *6,386,095* *22.4**%*
*Stockholders' Equity*
Common stock 6,185,082 170,381 (6,014,701 ) (97.2%)
Legal reserve 1,592,551 1,592,551 - 0.0%
Net income 1,968,856 5,997,492 4,028,636 204.6%
Retained earnings 9,940,035 7,927,599 (2,012,436 ) (20.2%)
Reserve for share repurchase 3,283,374 5,531,292 2,247,918 68.5%
Repurchased shares (1,733,374 ) (3,000,037 ) (1,266,663 ) 73.1%
Foreign currency translation reserve 1,037,446 1,034,233 (3,213 ) (0.3%)
Remeasurements of employee benefit – Net (10,052 ) 5,211 15,263 151.8%
Cash flow hedges- Net (471,107 ) 29,658 500,765 106.3%
*Total controlling interest* *21,792,811* *19,288,380* *(2,504,430* *)* *(11.5**%)*
Non-controlling interest 1,059,972 1,140,220 80,247 7.6%
*Total stockholder's equity* *22,852,783* *20,428,600* *(2,424,183* *)* *(10.6**%)*
*Total liabilities and stockholders' equity* *51,361,173* *55,323,085* *3,961,912* *7.7**%*
^The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).
*Exhibit C: Consolidated statement of cash flows **(in thousands of pesos):* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
*Cash flows from operating activities:*
Consolidated net income 340,411 1,802,434 429.5% 1,918,703 6,043,717 215.0%
Postemployment benefit costs 11,076 (10,057 ) (190.8%) 31,382 3,312 (89.4%)
Allowance expected credit loss (26,480 ) (17,153 ) (35.2%) 86,596 15,487 (82.1%)
Depreciation and amortization 506,148 519,409 2.6% 2,000,361 2,050,539 2.5%
(Gain) loss on sale of machinery, equipment and improvements to leased assets 1,604 (2,132 ) (232.9%) (14,375 ) (3,490 ) (75.7%)
Interest expense 352,339 459,578 30.4% 1,388,072 1,687,895 21.6%
Provisions 882 15,437 1650.2% 425 11,754 2665.6%
Income tax expense 53,228 604,778 1036.2% 467,067 1,785,543 282.3%
Unrealized exchange loss (454,485 ) 13,675 103.0% 57,780 (5,427 ) (109.4%)
Net (gain) loss on derivative financial instruments (4,397 ) (51,656 ) 1074.8% 43,778 (51,656 ) (218.0%) *780,326* *3,334,313* *327.3**%* *5,979,789* *11,537,673* *92.9**%*
*Changes in working capital:*
(Increase) decrease in
Trade accounts receivable 81,986 (280,531 ) (442.2%) 164,258 (464,395 ) (382.7%)
Recoverable tax on assets and other assets (189,087 ) (190,987 ) 1.0% (814,271 ) (299,842 ) (63.2%)
(Decrease) increase
Concession taxes payable 106,569 37,673 (64.6%) (253,633 ) 94,879 137.4%
Accounts payable (33,130 ) 926,703 2897.2% (697,613 ) 1,244,251 278.4%
*Cash generated by operating activities* *746,664* *3,827,171* *412.6**%* *4,378,532* *12,112,566* *176.6**%*
Income taxes paid 30,604 (302,646 ) (1088.9%) (811,965 ) (1,017,120 ) 25.3%
*Net cash flows provided by operating activities* *777,268* *3,524,524* *353.5**%* *3,566,567* *11,095,446* *211.1**%*
*Cash flows from investing activities:*
Machinery, equipment and improvements to concession assets (898,602 ) (2,146,804 ) 138.9% (3,160,111 ) (4,946,784 ) 56.5%
Cash flows from sales of machinery and equipment 3,062 226 (92.6%) 6,248 3,215 (48.5%)
Other investment activities 288 (13,756 ) (4876.4%) (63,828 ) (25,739 ) (59.7%)
*Net cash used by investment activities* *(895,252* *)* *(2,160,333* *)* *141.3**%* *(3,217,691* *)* *(4,969,308* *)* *54.4**%*
*Cash flows from financing activities:*
Capital distribution - - 0.0% - (6,014,701 ) (100.0%)
Debt securities - 2,500,000 100.0% 7,200,000 7,000,000 (2.8%)
Payment from Debt securities - - 0.0% (2,200,000 ) (1,500,000 ) (31.8%)
Bank loans - (81,512 ) (100.0%) - (5,941,663 ) (100.0%)
Repurchase of shares - (637,697 ) (100.0%) - (3,000,037 ) (100.0%)
Interest paid (417,087 ) (538,138 ) 29.0% (1,405,139 ) (1,659,473 ) 18.1%
Bank loans (96,535 ) - (100.0%) 2,709,125 3,779,413 39.5%
Interest paid on lease (564 ) (1,257 ) 122.9% (2,582 ) (2,598 ) 0.6%
Payments of obligations for leasing (3,029 ) (3,427 ) 13.1% (12,977 ) (12,467 ) (3.9%)
*Net cash flows used in financing activities* *(517,215* *)* *1,237,969* *(339.4**%)* *6,288,427* *(7,351,525* *)* *(216.9**%)*
Effects of exchange rate changes on cash held (140,686 ) 79,877 (156.8%) 307,053 113,715 (63.0%)
Net increase in cash and cash equivalents (775,885 ) 2,682,037 (445.7%) 6,944,356 (1,111,672 ) (116.0%)
*Cash and cash equivalents at beginning of the period* *15,220,432* *10,650,840* *(30.0**%)* *7,500,193* *14,444,549* *92.6**%*
*Cash and cash equivalents at the end of the period* *14,444,549* *13,332,877* *(7.7**%)* *14,444,549* *13,332,877* *(7.7**%)*
*Exhibit D: Consolidated statements of profit or loss and other comprehensive income **(in thousands of pesos)**:* *4Q20* *4Q21* *Change* *2020* *2021* *Change*
*Revenues*
Aeronautical services 2,023,398 3,571,344 76.5% 7,225,742 11,983,954 65.9%
Non-aeronautical services 650,490 1,077,886 65.7% 2,448,053 3,662,441 49.6%
Improvements to concession assets (IFRIC 12) (329,479 ) 539,140 263.6% 2,192,578 3,368,511 53.6%
*Total revenues* *2,344,408* *5,188,370* *121.3**%* *11,866,373* *19,014,906* *60.2**%*
*Operating costs*
Costs of services: 638,350 881,966 38.2% 2,668,707 2,989,631 12.0%
Employee costs 235,311 306,052 30.1% 970,481 1,115,750 15.0%
Maintenance 130,976 206,595 57.7% 426,523 546,548 28.1%
Safety, security & insurance 120,358 137,293 14.1% 458,316 510,440 11.4%
Utilities 83,106 107,333 29.2% 355,562 391,836 10.2%
Other operating expenses 68,599 124,693 81.8% 457,825 425,057 (7.2%)
Technical assistance fees 89,858 155,717 73.3% 289,154 526,220 82.0%
Concession taxes 193,414 359,403 85.8% 908,310 1,231,044 35.5%
Depreciation and amortization 506,148 519,409 2.6% 2,000,361 2,050,539 2.5%
Cost of improvements to concession assets (IFRIC 12) (329,479 ) 539,140 263.6% 2,192,578 3,368,511 53.6%
Other (income) (14,361 ) (2,857 ) (80.1%) (12,726 ) (8,231 ) (35.3%)
*Total operating costs* *1,083,930* *2,452,777* *126.3**%* *8,046,384* *10,157,714* *26.2**%*
*Income from operations* *1,260,478* *2,735,593* *117.0**%* *3,819,989* *8,857,192* *131.9**%*
Financial Result (866,839 ) (328,381 ) (62.1%) (1,434,222 ) (1,027,929 ) (28.3%)
*Income before income taxes * *393,639* *2,407,212* *511.5**%* *2,385,770* *7,829,263* *228.2**%*
Income taxes (53,228 ) (604,778 ) 1036.2% (467,067 ) (1,785,546 ) 282.3%
*Net income * *340,411* *1,802,434* *429.5**%* *1,918,703* *6,043,717* *215.0**%*
Currency translation effect (643,284 ) 55,056 108.6% 580,308 30,810 (94.7%)
Cash flow hedges, net of income tax (9,355 ) 96,525 1131.8% (299,013 ) 500,765 (267.5%)
Remeasurements of employee benefit – net income tax 4,680 3,649 22.0% (16,658 ) 15,263 191.6%
*Comprehensive (loss) income * *(307,548* *)* *1,957,664* *(736.5**%)* *2,183,340* *6,590,555* *201.9**%*
Non-controlling interest 90,102 (35,128 ) (139.0%) (18,701 ) (80,248 ) (329.1%)
*Comprehensive (loss) income attributable to controlling interest* *(217,446* *)* *1,922,536* *984.1**%* *2,164,639* *6,510,307* *200.8**%*
^The non-controlling interest corresponds to the 25.5% stake held in the Montego Bay airport by Vantage Airport Group Limited (“Vantage”).
*Exhibit E: Consolidated stockholders’ equity **(in thousands of pesos)**:* *Common Stock* *Legal Reseve* *Reserve for Share Repurchase* *Repurchased Shares* *Retained Earnings* *Other comprehensive income* *Total controlling interest* *Non-controlling interest* *Total Stockholders' Equity*
*Balance as of January 1, 2020* *6,185,082* *1,592,551* *3,283,374* *(1,733,374* *)* *9,940,035* *360,504* *19,628,172* *1,041,271* *20,669,443*
Comprehensive income:
Net income - - - - 1,968,856 - 1,968,856 (50,153 ) 1,918,703
Foreign currency translation reserve - - - - - 511,454 511,454 68,854 580,308
Remeasurements of employee benefit – Net - - - - - (16,658 ) (16,658 ) - (16,658 )
Reserve for cash flow hedges – Net of income tax - - - - - (299,013 ) (299,013 ) - (299,013 )
*Balance as of December 31, 2020* *6,185,082* *1,592,551* *3,283,374* *(1,733,374* *)* *11,908,891* *556,287* *21,792,811* *1,059,972* *22,852,783*
Capital reduction (6,014,701 ) - - - - - (6,014,701 ) - (6,014,701 )
Repurchased shares cancellation - - (1,733,374 ) 1,733,374 - - - - -
Reserve for share repurchase - - 3,981,292 - (3,981,292 ) - - - -
Repurchased share - - - (3,000,037 ) - - (3,000,037 ) - (3,000,037 )
Comprehensive income: - - - - - - - - -
Net income - - - - 5,997,492 - 5,997,492 46,225 6,043,716
Foreign currency translation reserve - - - - - (3,213 ) (3,213 ) 34,023 30,810
Remeasurements of employee benefit – Net - - - - - 15,263 15,263 - 15,263
Reserve for cash flow hedges – Net of income tax - - - - - 500,765 500,765 - 500,765
*Balance as of December 31, 2021* *170,381* *1,592,551* *5,531,292* *(3,000,037* *)* *13,925,091* *1,069,102* *19,288,380* *1,140,220* *20,428,600*
^For presentation purposes, the 25.5% stake in Desarrollo de Concesiones Aeroportuarias, S.L. (“DCA”) held by Vantage appears in the Stockholders’ Equity of the Company as a non-controlling interest.
As a part of the adoption of IFRS, the effects of inflation on common stock recognized pursuant to Mexican Financial Reporting Standards (MFRS) through December 31, 2007, were reclassified as retained earnings because accumulated inflation recognized under MFRS is not considered hyperinflationary according to IFRS. For Mexican legal and tax purposes, Grupo Aeroportuario del Pacífico, S.A.B. de C.V., as an individual entity, will continue preparing separate financial information under MFRS. Therefore, for any transaction between the Company and its shareholders related to stockholders’ equity, the Company must take into consideration the accounting balances prepared under MFRS as an individual entity and determine the tax impact under tax laws applicable in Mexico, which requires the use of MFRS. For purposes of reporting to stock exchanges, the consolidated financial statements will continue being prepared in accordance with IFRS, as issued by the IASB.
*Exhibit F: Other operating data: * *4Q20* *4Q21* *Change* *2020* *2021* *Change*
Total passengers 8,217.3 12,760.5 55.3% 27,327.5 42,937.2 57.1%
Total cargo volume (in WLUs) 673.7 723.5 7.4% 2,223.2 2,735.5 23.0%
Total WLUs 8,891.0 13,484.0 51.7% 29,550.7 45,672.7 54.6% 0.0% 0.0%
Aeronautical & non aeronautical services per passenger (pesos) 325.4 364.3 12.0% 354.0 364.4 2.9%
Aeronautical services per WLU (pesos) 227.6 264.9 16.4% 244.5 262.4 7.3%
Non aeronautical services per passenger (pesos) 79.2 84.5 6.7% 89.6 85.3 (4.8%)
Cost of services per WLU (pesos) 71.8 65.4 (8.9%) 90.3 65.5 (27.5%)
^WLU = Workload units represent passenger traffic plus cargo units (1 cargo unit = 100 kilograms of cargo).
*Passenger Traffic and Consolidated Results compared to the same periods of 2019:*
*Domestic Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *4Q19* *4Q21* *Change* *2019* *2021* *Change*
Guadalajara 2,730.0 2,542.0 (6.9%) 10,495.8 8,540.2 (18.6%)
Tijuana * 1,528.7 1,870.1 22.3% 5,979.7 6,891.3 15.2%
Los Cabos 468.0 575.0 22.8% 1,915.7 2,020.4 5.5%
Puerto Vallarta 468.1 554.3 18.4% 1,839.3 1,848.5 0.5%
Guanajuato 2.4 404.4 (100.0%) 9.2 1,487.1 (100.0%)
Montego Bay 534.6 0.0 (24.4%) 2,056.9 0.0 (27.7%)
Hermosillo 488.1 449.5 (7.9%) 1,803.8 1,457.9 (19.2%)
Mexicali 320.8 324.3 1.1% 1,191.9 1,088.4 (8.7%)
Morelia 136.0 146.9 8.0% 478.8 541.0 13.0%
La Paz 255.0 266.7 4.6% 995.4 901.8 (9.4%)
Aguascalientes 3.2 178.1 (92.8%) 3.2 582.8 (62.8%)
Kingston 169.6 0.2 N/A 635.2 1.2 N/A
Los Mochis 101.6 106.3 4.6% 384.4 358.3 (6.8%)
Manzanillo 24.9 25.7 3.5% 95.3 86.8 (9.0%)
*Total* *7,231.0* *7,443.5* *2.9**%* *27,884.8* *25,805.6* *(7.5**%)*
^*CBX users are classified as international passengers.
*International** Terminal Passengers – 14 airports **(in thousands)**:*
*Airport* *4Q19* *4Q21* *Change* *2019* *2021* *Change*
Guadalajara 1,116.0 1,059.5 (5.1%) 4,350.5 3,702.7 (14.9%)
Tijuana * 810.0 885.5 9.3% 2,946.1 2,786.6 (5.4%)
Los Cabos 928.7 1,067.1 14.9% 3,693.4 3,529.2 (4.4%)
Puerto Vallarta 794.3 813.6 2.4% 3,212.5 2,271.5 (29.3%)
Guanajuato 1,083.4 821.3 (24.2%) 4,698.5 2,581.9 (45.0%)
Montego Bay 170.8 184.6 8.1% 698.9 631.9 (9.6%)
Hermosillo 18.6 25.5 37.3% 70.2 102.1 45.3%
Mexicali 1.8 2.0 8.8% 6.9 5.6 (18.8%)
Morelia 106.1 113.2 6.7% 418.9 406.1 (3.1%)
La Paz 3.4 4.6 35.9% 12.8 18.3 43.2%
Aguascalientes 405.5 262.5 (35.3%) 405.5 829.3 104.5%
Kingston 58.9 58.6 N/A 223.2 210.6 N/A
Los Mochis 1.5 2.3 53.4% 6.9 9.4 35.6%
Manzanillo 18.6 16.8 (9.6%) 79.4 46.5 (41.4%)
*Total* *5,517.5* *5,317.0* *(3.6**%)* *20,823.9* *17,131.6* *(17.7**%)*
^*CBX users are classified as international passengers.
*Total Terminal Passengers **– 14 airports* *(in thousands)**:*
*Airport* *4Q19* *4Q21* *Change* *2019* *2021* *Change*
Guadalajara 3,846.1 3,601.5 (6.4%) 14,846.3 12,243.0 (17.5%)
Tijuana * 2,338.7 2,755.6 17.8% 8,925.9 9,677.9 8.4%
Los Cabos 1,396.7 1,642.1 17.6% 5,609.1 5,549.6 (1.1%)
Puerto Vallarta 1,262.5 1,367.9 8.3% 5,051.9 4,120.0 (18.4%)
Guanajuato 1,085.7 1,