ASR

Business Context and Reporting Period

Company: Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR)

Reporting Period: First Quarter ended March 31, 2015 (1Q15)

Business Overview: ASUR operates nine airports in southeast Mexico (including Cancún) and holds a 50% joint venture stake in Aerostar Airport Holdings, LLC, which operates the Luis Muñoz Marín International Airport in San Juan, Puerto Rico. The company is a foreign private issuer listed on the NYSE (ASR) and BMV (ASUR).

Key Financial Metrics

Operational Metrics:

• Total Passenger Traffic: 6.60 million (+12.35% YoY)
• Commercial Revenue per Passenger: Ps. 82.59 (+5.95% YoY)
• EBITDA Margin: 63.63% (down from 68.76% in 1Q14)
• Operating Margin: 57.19% (down from 60.59% in 1Q14)

Material Changes vs. Prior Period

Revenue Growth Drivers:

• Aeronautical Revenues: Increased 17.02% to Ps. 982.05 million, driven by a 12.35% rise in passenger traffic.
• Non-Aeronautical Revenues: Increased 18.83% to Ps. 621.22 million. Commercial revenues rose 19.08%, supported by growth in retail (+22.05%), food and beverage (+24.85%), and car rentals (+19.43%).
• Construction Services: Surged 815.70% to Ps. 193.33 million due to higher capital expenditures on concessioned assets. This increase is offset by an equal increase in construction costs, resulting in no net impact on EBITDA but diluting the EBITDA margin.

Expense Increases:

• Total operating costs rose 41.08% to Ps. 769.11 million.
• Administrative expenses increased 31.58% due to social security contributions.
• Concession fees to the Mexican government rose 18.80% due to higher regulated revenues.
• Technical assistance fees to ITA increased 20.18% linked to higher EBITDA.

Financing and FX:

• Comprehensive financing result shifted from a Ps. 2.50 million gain in 1Q14 to a Ps. 18.48 million loss in 1Q15.
• The loss was primarily driven by a Ps. 35.18 million foreign exchange loss due to a 3.55% depreciation of the Mexican peso against the U.S. dollar.

Guidance, Outlook, and Risks

Management Commentary: Management highlighted strong passenger growth across all airports, with domestic traffic up 16.60% and international traffic up 10.02%. The company continues to invest in modernization, with Ps. 153.63 million in capital expenditures during 1Q15.

Regulatory Environment: Regulated revenues accounted for 69.18% of total income. The Mexican Ministry of Communications and Transportation sets maximum rates per traffic unit, which are reviewed annually.

Risks and Contingencies:

• Currency Risk: Significant exposure to the Mexican peso/U.S. dollar exchange rate, impacting financing costs and the translation of equity in the Puerto Rico joint venture (Aerostar).
• Regulatory Risk: Dependence on government-set tariff caps for the majority of revenue.
• Forward-Looking Statements: The filing notes that future expectations are subject to risks and actual developments may differ significantly.

Investor Verification Checklist

• Construction Accounting: Verify the impact of IFRIC 12 on revenue and expense recognition, noting that the 815% revenue spike in construction services is non-cash and fully offset by costs.
• Currency Sensitivity: Assess the impact of peso depreciation on future financing costs and the valuation of the Aerostar joint venture equity.
• Margin Compression: Analyze the sustainability of the EBITDA margin decline (from 68.76% to 63.63%) given the one-time nature of the construction revenue recognition versus recurring cost increases.
• Debt Levels: Confirm total bank debt of Ps. 3,278.63 million and review upcoming maturity schedules not detailed in this summary.
• Passenger Mix: Monitor the split between domestic (+16.60%) and international (+10.02%) traffic growth to gauge exposure to regional economic conditions.