PAC

Business Context and Reporting Period

Company: Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (Pacific Airport Group)

Filing Type: Form 6-K (Report of Foreign Private Issuer)

Reporting Period: Third Quarter ended September 30, 2014 (3Q14) and Year-to-Date (9M14).

Operations: The Company operates twelve airports in Mexico's Pacific region, including major hubs in Guadalajara and Tijuana, and tourist destinations such as Puerto Vallarta and Los Cabos. Financial results are unaudited and prepared in accordance with International Financial Reporting Standards (IFRS) in nominal pesos.

Key Financial Metrics

Third Quarter 2014 (3Q14) Performance

• Total Revenues: Increased Ps. 50.6 million (3.8%) compared to 3Q13.
• Operating Income: Increased Ps. 63.1 million (10.7%).
• EBITDA: Increased Ps. 65.9 million (8.1%). EBITDA margin (excluding IFRIC 12) rose to 67.8% from 67.5%.
• Net Income: Increased Ps. 69.1 million (14.9%).
• Operating Margin: Increased 300 basis points to 47.7% (49.1% to 50.5% excluding IFRIC 12).
• Liquidity: Cash and cash equivalents totaled Ps. 1,188.5 million as of September 30, 2014.
• Capital Expenditures (CAPEX): Ps. 474.1 million invested during the first nine months of 2014.

Year-to-Date 2014 (9M14) Performance

• Total Revenues: Increased Ps. 325.4 million (8.4%).
• Operating Income: Increased Ps. 344.6 million (19.7%).
• EBITDA: Increased Ps. 352.9 million (14.6%). EBITDA margin (excluding IFRIC 12) rose to 69.5% from 68.3%.
• Net Income: Increased Ps. 264.8 million (19.6%).
• Financing Result: Shifted from an expense of Ps. 60.0 million in 9M13 to an income of Ps. 1.6 million in 9M14.

Material Changes vs. Prior Period

Revenue Drivers

• Aeronautical Revenues: Increased Ps. 58.3 million (6.4%) in 3Q14, driven by a 3.1% growth in total passenger traffic (181.5 thousand additional passengers). Growth was led by Guadalajara (4.2%), Puerto Vallarta (17.3%), and Guanajuato (25.7%).
• Non-Aeronautical Revenues: Increased Ps. 33.1 million (11.5%) in 3Q14. This was primarily due to a 74.9% increase in recovery of costs revenues from providing checked baggage inspection services to more airlines.
• Concession Asset Improvements (IFRIC 12): Revenues decreased Ps. 40.8 million (34.4%) due to a lower level of investment in 2014 compared to 2013, consistent with the Company's Master Development Programs.

Expense Changes

• Cost of Services: Increased Ps. 12.9 million (4.4%) in 3Q14. Key drivers included higher employee costs (uniforms/security equipment), maintenance costs (baggage inspection/runways), and safety/security fees.
• Other Operating Expenses: Decreased Ps. 10.8 million (17.6%) due to lower professional service fees and provisions for doubtful accounts.
• Financing Expenses: Increased Ps. 3.1 million in 3Q14 due to lower interest income, partially offset by a net exchange rate gain.

Outlook, Risks, and Unusual Items

Hurricane Odile Impact

On September 14, 2014, Hurricane Odile severely damaged the Los Cabos International Airport, causing a suspension of commercial flights from September 15 to October 2. The Company evacuated approximately 25,000 passengers and resumed domestic flights on October 3 and international flights on October 8. While the prompt re-initiation of operations limited the impact on passenger traffic, the event caused a decrease in traffic at Los Cabos during the quarter. La Paz International Airport suffered minor damage and resumed operations almost immediately.

Regulatory and Credit Ratings

• Tariff Regulation: The Mexican Ministry of Communications and Transportation (SCT) confirmed the Company's compliance with maximum aeronautical rates for 2013. Regulated revenues accounted for 70.2% of total revenues in 9M14.
• Credit Rating: On October 10, 2014, Standard & Poor's assigned the Company a long-term credit rating of 'mxAAA' with a 'Stable' outlook.
• Financing Strategy: The Company expects to establish a long-term bond program in local markets to finance 100% of investment projects for the next five years and refinance current debt.

Accounting Policy Changes

Beginning January 1, 2014, the Company adopted several new IFRS standards, including IFRS 9 (Financial Instruments) and IFRIC 21 (Levies). The 2014 fiscal reform in Mexico also changed the corporate tax rate from 28% to 30%, impacting deferred income tax assets.

Investor Verification Checklist

• Verify the extent of physical damage and repair costs at Los Cabos International Airport following Hurricane Odile, and monitor traffic recovery trends in Q4 2014.
• Confirm the timeline and terms of the proposed long-term bond program intended to refinance current debt and fund future CAPEX.
• Monitor the impact of the 2014 Mexican fiscal reform (tax rate increase to 30%) on future net income and deferred tax liabilities.
• Review the sustainability of the 11.5% growth in non-aeronautical revenues, specifically the recovery of costs from checked baggage inspection services.
• Assess the Company's compliance with SCT maximum aeronautical rates for the full year 2014.