ASR

Business Context and Reporting Period

Company: Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR / Southeast Airport Group)
Filing Type: Form 6-K (Report of Foreign Private Issuer)
Reporting Period: Second Quarter (2Q) and First Half (1H) ended June 30, 2010
Business Overview: ASUR is the first privatized airport group in Mexico, operating Cancún Airport and eight other airports in southeast Mexico. Financial figures are unaudited, prepared under Mexican Financial Reporting Standards (MFRS), and expressed in nominal Mexican pesos (Ps.).

Key Financial Metrics (2Q10 vs. 2Q09)

Liquidity and Balance Sheet (as of June 30, 2010):

• Cash and Marketable Securities: Ps.669.98 million (down 31.17% from June 30, 2009).
• Total Bank Debt: Ps.181.82 million (including Ps.5.8 million accrued interest).
• Shareholder's Equity: Ps.13,780.24 million (83.17% of total assets).
• Total Liabilities: Ps.2,789.35 million (16.83% of total assets; 76.38% deferred).

Material Changes vs. Prior Period

Passenger Traffic: Total passenger traffic increased 26.75% year-over-year in 2Q10, driven by a recovery from the A/H1N1 influenza outbreak and global recession impacts in 2Q09.

• International Traffic: Up 37.79% (Cancún up 39.79%).
• Domestic Traffic: Up 13.76% (Cancún up 16.14%, Mérida up 21.40%, Veracruz up 21.54%).

Revenue Drivers:

• Aeronautical Revenues: Increased 34.14% due to higher passenger volume.
• Non-Aeronautical Revenues: Increased 29.55%. Commercial revenues rose 30.85%, with significant growth in duty-free (40.00%), food and beverage (43.44%), and banking/currency exchange (95.39%).
• Commercial Revenue per Passenger: Increased 3.16% to Ps.61.17.

Cost Structure: Total operating costs rose 11.47%.

• Administrative Expenses: Increased 53.01% due to labor cost reassignments from operating areas to corporate.
• Technical Assistance Fee: Increased 40.88% (linked to EBITDA growth).
• Concession Fees: Increased 28.03% due to a higher taxable base.
• Depreciation & Amortization: Declined 4.31%.

Guidance, Outlook, Risks, and Unusual Items

Management Commentary & Outlook:

• Management attributes the strong performance to the recovery in international tourism and the low base in 2Q09 caused by the H1N1 pandemic.
• Capital expenditures for 2Q10 were Ps.123.36 million, part of ongoing modernization plans.
• Regulated revenues accounted for 71.23% of total income, with an annual average tariff of Ps.143.81 per workload unit.

Risks and Contingencies:

• Tax Law Changes: Cancún Airport began paying income tax rather than the flat-rate IETU in 2010. The company recorded Ps.87.1 million in provisional tax payments as an asset, expecting recovery against future taxes.
• Accounting Standards: ASUR is reviewing the impact of INIF 17 ("Service Concession Contracts") on its financial statements; no significant impact is expected yet, but applicability is being assessed.
• Interest Rate Risk: The company is 100% hedged against interest rate exposure on its Ps.750 million credit agreement (fixed rates between 6.21% and 6.37%).
• Forward-Looking Statements: Future expectations are subject to risks identified in SEC filings; actual results may differ.

Investor Verification Checklist

• Tax Position: Verify the recoverability of the Ps.87.1 million tax asset recorded due to the shift from IETU to income tax at Cancún Airport.
• Accounting Impact: Monitor the final determination of INIF 17 applicability regarding concession contracts.
• Debt Servicing: Confirm the schedule for the remaining principal payments on the Ps.750 million credit agreement (Ps.309.09 million paid in 2Q10).
• Traffic Sustainability: Assess whether the 26.75% traffic growth is a one-time recovery from the 2009 H1N1 low base or a sustained trend.
• Cost Management: Review the sustainability of administrative expense growth (up 53%) driven by employee reassignments.