OMAB

Business Context and Reporting Period

Company: Central North Airport Group (Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.), trading as OMA (NASDAQ: OMAB; BMV: OMA).

Reporting Period: First Quarter 2011 (ended March 31, 2011).

Accounting Standards: The Company elected early adoption of International Financial Reporting Standards (IFRS) for the year ending December 31, 2011. 2010 is the transition year. Financial statements for 1Q10 and 1Q11 are prepared under IAS 34 "Interim Financial Reporting," with 2010 data reformulated for comparison.

Operations: OMA operates 13 international airports in central and northern Mexico and manages the NH Terminal 2 hotel at Mexico City International Airport.

Key Financial Metrics

Margins: Operating margin was 30.4%. EBITDA margin was 36.6%. Adjusted EBITDA margin was 51.5%.

Material Changes vs. Prior Period

• Traffic Decline: Total passenger traffic decreased 3.7% to 2.7 million. International traffic fell 12.1%, while domestic traffic dropped 1.4%. Flight operations decreased 3.8%.
• Revenue Mix Shift: Non-aeronautical revenues surged 22.5% (driven by the NH T2 hotel and new Terminal B in Monterrey), offsetting a 1.2% decline in aeronautical revenues.
• Cost Increases: Costs and G&A expenses rose 23.9% to Ps. 261 million. This was primarily due to a new non-cash maintenance provision (Ps. 41 million in 1Q11 vs. Ps. 16 million in 1Q10) and higher variable costs from the NH T2 hotel.
• Profitability Impact: Net income dropped 41.0% due to higher tax provisions and the increased maintenance provision. However, Adjusted EBITDA remained nearly flat, indicating stable core cash flow generation.
• Liquidity: Operating cash flow improved significantly to Ps. 140.5 million due to better receivables collection and reduced accounts payable. Financing activities showed an outflow of Ps. 117.5 million, largely due to dividend payments.

Guidance, Outlook, and Risks

Management Commentary: Management highlighted successful diversification of revenue streams, particularly the 111.6% revenue growth at the NH T2 hotel (occupancy rate 80.5% vs. 42.2% in 1Q10). The opening of Terminal B in Monterrey contributed to non-aeronautical growth. Adjusted EBITDA stability demonstrates the company's ability to sustain cash flow despite new operational costs.

Key Risks and Contingencies:

• Airline Suspension: Traffic was negatively impacted by the suspension of Grupo Mexicana airlines in August 2010.
• Seasonality: Timing of the Holy Week vacation period affected traffic comparisons (March 2010 vs. April 2011).
• Accounting Transition: The shift to IFRS introduced changes in accounting policies, including the recognition of a maintenance provision and changes in deferred tax calculations.
• Forward-Looking Statements: The filing includes standard disclaimers regarding risks that could cause actual results to differ from projections, referencing the "Risk Factors" section of the most recent Form 20-F.

Investor Verification Checklist

• Verify the impact of the new IFRS maintenance provision (Ps. 41 million) on future earnings and cash flow projections.
• Monitor the sustainability of the NH T2 hotel occupancy rates (80.5%) and revenue growth post-transition.
• Assess the recovery of international passenger traffic, which declined 12.1% year-over-year.
• Review the capital expenditure plan (Ps. 194 million in 1Q11) regarding the Master Development Plan (MDP) and strategic investments.
• Confirm the timeline and impact of the remaining dividend payments (fourth installment of 2009 dividend paid in April 2011).