Q4 2021 Grupo Aeroportuario del Pacifico SAB de CV Earnings Call
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Good morning, and welcome to Gap's fourth quarter 2021 conference call all lines have been placed on mute to prevent any background noise. After their presentation. We'll open the floor for questions and at that time instructions will be given if you would like to ask a question.
It is now my pleasure to turn the call over to <unk> Investor Relations. Kim. Please go ahead.
Thank you and welcome to the Glu boarder portfolio of the C. V go fourth quarter 2021 conference call presenting from the company today, we have Mr. Walter <unk>, Chief Executive Officer, and Mr. Sal Villarreal Chief Financial Officer. Please be advised that forward looking statements may be made during this conference call. These do not account for future.
Her economic circumstances industry conditions, the company's future performance or financial results as such statements made are based on several assumptions and factors that could cause actual results to materially differ from current expectations for a complete note on forward looking statements. Please refer to the quarterly report issued on Tuesday.
Thank you at this point I will turn the call over to Mr. Revuelta for his opening remarks. Please go ahead Sir.
Thank you Maria good.
Morning, everyone and welcome to today's call.
220, 111 of the more significant years of golf projectors.
Not only did we never hear through one of the most challenging periods in the industry.
While at the same time, achieving the best result in the history.
Traffic across our operations continue to recover during the last quarter of this year, reaching almost 43 million passengers in 2021.
57% of compared to the 2020 and down only 12% versus 2019.
For the second jewelry in a row.
<unk> is the largest airport operator in Mexico.
Traffic decrease of only 9% representing around 32% of total market.
This performance was mainly driven by the outstanding growth experience in the corner on this cultural book.
There was a horrible how sort of slow recovery, but was mainly due to the business revenue Mark.
It is important to note that while the Hell out of Mexico C U E.
Is there one that has closed.
Most challenging recovery unfolds.
In addition to stronger Metropolitan airports for example, one of water available.
The passengers traffic up our Jamaican Airbus also remaining fairly impact.
In 2021 delivered by government both traffic the future related to COVID-19 virus.
Our aim is to mitigate the impact therefore, we continue working closely with airlines trying to secure additional routes on purpose.
As evidence of this during the fourth quarter GAAP launch, both new into Russia with some for domestic ones.
Our hospital got during December of 2021 for the first time in the history of Wella color. We opened a direct route to Europe , there aren't a whole lot to motherhood, which references per week.
All channels, but looking forward to 2022.
Be opening new routes through to include portable to Manchester portfolios like the work week and establish commodities.
Onto the revenue performance.
Our fruit during 2021, delighting increase about 9% compared to 2019.
15, 6 billion pesos in 2021 aeronautical revenues increased by 14% versus 2019, driven mainly by the recovery in passenger traffic as well as increase in maximum impact.
On the commercial side.
Continue supporting our tenants via discounts over the many of our rental fleet, which have you discussed in the past calls.
This is comps are now youre more pool abaxis.
Passenger traffic at most of our airports have recovered to about 2019 levels.
What this means is that we see that the end of the discount programs in the near future.
We'll see.
Signify that we will be going back to the revenue share fees. After the original Devon contract.
On this basis under renovation, so baidu contracts have offset the commercial revenue declined by only 2%, which is minimal compared to 2019.
<unk> revenue in duty free stores accounted for most of the recovery.
Both surpassing 2019, let us this was offset by the lagging revenue from VIP lounges, and advertising, which has been impacted since the beginning of the pandemic.
I have been struggling with.
Regain their protein levels.
In 2021, EBITDA was $10 9 billion pesos.
The result of various factors, including a nonstandard passengers' traffic recovery.
Tariff increase.
Commercial area of spending per passenger.
This was partially offset by the increase of cost of service, mainly due to the full consolidation of the Kingston Airport considering that there were only 13 airports in the Netherlands in 2019 versus 2021 .
Increasing the cost of service will be only three 6%.
Because of service also royalty rose to the opening of new commercial spaces is a Scottish airports as well as in Europe .
B IP launch.
The first quarter head count also increased as a result of the size of the construction projects.
We plan to execute in 2021, and therefore illegal juice umbrella the minimum wage increase in Mexico does that fixed cost for maintaining that material and security services.
Addition to the change in the living room.
The tight cost control measures implemented in 2020 was rather loosen the 2021 in accordance with the passenger traffic recovery experience in each area.
In order to maintain quality of service is traffic discrete and it is important to mention that EBITDA. If you represent an 11% increase comparing to 2019.
Reaching an EBITDA margin of 69, 7%.
To limit the recovery of total passengers.
On the balance sheet front cash on cash equity holdings.
13.3 Bureau business update of the year.
At the end of the year was a total of $27 9 million basis. According to the east we continued with a healthy level of flavor with a net debt EBITDA ratio of one three times.
There is a maturity payment of $1 5 billion pesos that is due to the first quarter of 2020 corresponding to the GAAP 17th Bond certificate and this will be recognized through a bond issuance in the coming weeks.
Moving onto the Capex in there while.
We continued with the construction of the second one as well as the new commercial mix of juice beauty.
Which really good quarter on hotel rooms.
Corporate office as well as our commercial business.
And we expect that building will be completed during 2023, and we look forward to sharing those updates with you in the future of communications.
Would be quite up the construction of the terminal processor building progress.
We expect that it will be finalized towards the end of March of this year and we will start operation on April of 2022.
Give your buildings are timely unnecessary projects projects that will add around 40000 square meters. We.
We will complete any renewed the viability and success of airport and we have seen in the past years, not only will it bring the capacity up to grow more flags routes and frequencies, but it will readily expand our ability to better service international markets complementing the Greg.
Seasonality of cross border bridge.
Carlos we continued to expand international terminal building.
Around 20000 additional square meters, which will also add commercial spaces. The construction project coverage, 50% approach.
Additionally, we are currently working on the design of the second terminal building portfolio.
Which we expect to really start construction during the fourth quarter of 2022.
Moving onto the EOG.
We're proud to announce that gap what's included in the Bloomberg gender equality index.
Just referencing this measure gender equality across five pillars.
On the leadership and talent pipeline equal pay and gender pay parity inclusive culture anti sexual harassment policies.
For women's initiative.
The index it good.
<unk> hundred 80, <unk> companies around the World and Mexico listing companies going through it.
Regarding the gap Foundation I just want to mention that during 2021, we operate 12 community centers.
One at each of Mexican airports, where employees and their communities have access to aluminum middle and high school as well as to the meter technical training courses designed interest pregnant the professional skill and knowledge these tools.
Which group, which provides the foundation. So first then you have embedded opportunities in the future.
During 2021, we provide training and education to more than 80000 students.
Irrespective of Catholic schools. During 2021, we offer the first Middle school and we keep the operation of the preliminary schools.
In 2021, we'd have more than 1000 full time students.
For GAAP there is a lot to look forward.
We know that tolerance are always they're always on in the industry, but we are confident that the future is built here too.
Together with our team and our partners deadlines for the passengers. Thank you all for your support and for your attention.
We'll ask the operator to please open the floor for your questions.
Yeah.
At this time, if you would like to ask a question. Please press the star and one on your Touchtone phone.
Draw your question at any time by pricing the pound key.
Once again to ask a question over the phone. Please press the star and one on your Touchtone phone.
You May also submit your questions via Webex.
And we will take our first question from Guillermo Fernandez with JP Morgan. Please go ahead. Your line is open.
Hey, guys. Good morning, and thanks for taking my question I have two questions actually the first one is the truck performance.
What are your expectations on theory about on traffic, especially now post the army Crone situation and the second one regarding the Jamaican operations.
Christian or potentially rebalance.
Being evolving thanks.
Thank you.
Let me begin with our expectations for this year in terms of traffic first of all it's important to remember that at least the first quarter and part of the second quarter, we would have some way.
E Commerce comps, so we will see.
A great increase in passengers on these when we compare with 2000 2021.
After that we're going to see a more.
Ryanair recovery room.
I will say that we are seeing a double.
Double digit growth in traffic.
At the end of the day to day, it's been difficult to do to see if all the.
The impact of the Covid, it's already in the past or is it something.
Something that could continue.
We expect that gradually.
Business travelers will come back to the airports will go back to the physicians and we'll come back to the different theories.
Continues more normality way, but I will say that at least from the information that we have today.
We expect to close this year with a record year with passengers.
First up and also we are expecting that.
The full recovery of almost all of our airports.
Good.
The case of Jamaica for sure.
It will depend of.
The time and the policies that the Jamaican government.
Fully opened the four operations on the on the island.
We will see that rather leave that there.
The policies against cut it in in Jamaica.
And again the market. So we also expect.
A gradual recovery in our Jamaican airports, but for sure.
We are shown.
Shown about any.
And the impact that the cabinet completing today.
The market for.
For conclude I will say that in general terms we.
<unk> picked up.
The biggest part of our our airports will be.
In a record year.
We will see a more a grades recovery that will continue in the in the <unk> side.
The BC relative France routes.
And we.
Still seen I'd, rather leave or a slower recovery in business for at least the first half of the year.
Okay very clear. Thanks, just one quick clarification, and Jamaica are still discussing a rebalance with the government.
Yes.
Let me let me let me try to explain you. Thank you for your question yes.
Yes, we are continue talking with authorities about the rebalancing proposal, which is meeting in November 2020, However, they have been facing some.
Problems.
Confirming the specialist team that will be negotiating with these are balancing as you may know, we have two independent discussions about Montego Bay, and Kingston, and we are pushing and trying to do.
To meet and to try to discuss but we haven't started yet.
Got a couple of meetings next month, and we will try to.
Try to push and move forward.
Speedy way because.
Obviously, we need to have certainty about the rebalancing proposal, but we had middle of the process.
Yeah.
Okay Super clear thank you.
So we'll take our next question from Pablo <unk> with Barclays. Please go ahead.
Hi.
Good morning, Thanks for taking my question.
I just have a quick one in terms of the maximum allowed how close are you to reach 100%.
What is your view on how inflation is evolving.
If you can shed some light on that thank you.
Hi, Pablo.
Thanks for your question, Yes, you're right.
We are having.
Reached the 100% of the of the tariff.
'twenty one.
<unk> Ah hi.
Inflation.
With the tariff flashing possible to reach as 100%.
We are expecting for 2022 to be closer to the 100% that we used to have in the previous years, but it's complicated.
That we have two times per year suggests our specific targets.
In 2021 week recorded at just enough.
And for 2022, we are expecting another 100% that just to be close to the 99.
96% of the Lucky Friday.
That's our target independence and inflation and it depends on the exchange rate, which is unimportant in.
In the in the Formula for for the maximum tariff walls.
Sure.
If I may for modeling purposes, how much and when.
Are you increasingly.
Each year.
Correct.
I will say that the first increase already of course.
All of our airports.
First of January .
And we will not have an additional increase.
For just the two indicators so <unk>.
The quarter well ahead of that will be in place in may of this year.
Okay.
And do you have a sense of the magnitude of the increases.
You are speaking to us.
Yeah.
Well the magnitude.
Tableau is a.
Is it in <unk>.
That we manage.
The studies.
The adjustment for a specific tablets are correlating to each airport saw it.
At the end our target is to reach the 90, 687% of the maximum tariff.
We adjust.
Adjust.
The target for the airlines and.
Charges, both and it depends on each on each airplane and we cannot say specific.
The percentage because we make a different adjustments depend on each each airport.
What is important then that it would be our belief.
The robust shown.
Inflation.
E Intp collection product inflation index.
It would be a relief adapt leaving the increase of the ore.
Each one of our our I will say in some specific cases.
Depending on our foreseen.
<unk>.
Dollar exchange, he will be a little bit higher or a little below.
Total leaf.
All our tier if you will see.
And increased debt.
Taking account the product.
The production project.
<unk> index.
Perfect very clear thank you very much.
Okay.
We will take our next question from Alan Macias with Bank of America. Please go ahead. Your line is open.
Yes.
Hi, good morning.
For the call.
Yes.
One question on dividend payments and when do you expect for this year.
Yeah.
The comment you might have on dividend.
Policy.
Thank you.
Hi, Alan Thanks.
Thanks for your question, Yes, we are ready to make a proposal for the board of directors, we are going to release the agenda for that.
And our shareholders.
Meeting this year.
And we will revisit next week.
Then we will continue with our policy in previous years as you know GAAP is one of the highest dividend payments.
Companies in Mexico. So we will continue with that trend and we once we release the agenda you will see our dividend.
And our proposal, but the general comment is we will continue with our previous policy.
Thank you.
Yeah.
We will take our next question from Gabriel chemotherapy with Scotiabank. Please go ahead.
Hi, good morning, congratulations on the results.
Can you give us a bit of color about why.
One is connectivity do you think that the clinical.
Add more exposure to international routes to for example Asian destinations and become like a breach point from Asia to the U S.
Yes.
So I would say that.
In general terms.
Everybody knows.
Quanta has a really great pressure on domestic market. We have 34 direct routes from from Tijuana, where the second airport in Mexico with more direct routes Joe softer in Mexico City Airport, so that gives us a key strength for <unk>.
More important or to begin to build.
Across our support there in the past disclaimer already operates two routes to Asia, we used to have Shanghai and we used to have <unk>.
One of these wound a key.
Factors that made us develop the new.
Tell me all building decline up is to adding to our product and cats international passengers to Bay area. I mean, we are trying to bring international play.
Claims due to the quarter or birth and in some way.
Taking the advantage of the market of California to attract those those routes so with a new terminal building, we'll be able to attract additional routes for sure.
What we think that will not happen in the coming years. It will be a gradual composition of what could be or a gradual transformation of what could be a new <unk>.
What I hope for the country, but at the very beginning we will begin or we expect to see some routes to two.
Central America markets first.
Then some some some specific comps up this out it could be Panama.
We also are.
Checking to see direct connection direct routes to some of the biggest hub.
In the U S.
After that for sure we will try to recover the slides.
Slides that we used to have to Asia. So in general terms I would say that for sure. The new facility will give us the chance to attract new passengers.
International passengers in some way, we read the connection with South, California, when we know that will be in some way easier to begin some direct routes to Asia and to.
Central America, and South America. So this will be gradual but the great news is that we will have the correct purely to begin to our practice of specific international routes.
Our operating Dst's disturb me now for the <unk>. So for the for this amount of fun thing in Mexico.
Okay. Thank you and how much do you think of the demand you are going to capture from.
For example, the San Diego Airport, or maybe a little bit opening.
Uh huh.
San Francisco.
I would say that is.
Difficult to talk about a specific.
Proportion that we can.
Upfront for all the airports.
We'll set up in the other hand.
For instance for dinnerware Bert is completely packaged completely full.
<unk> done operate 24 hours per data only be operator until later in the night.
So we have a great opportunity to our platform.
Additional.
Passengers two hour to hour.
For sure I will.
You said that today the quanta is one of the most.
<unk> windows to Archrock.
South, California market that guy going to do it in different Mexican beaches that is something that in the past.
We then used to have I will say that.
The last three years, we completely compared that market. So we have a really important market from Tijuana to cabos two backyard.
Two la Paz to defer and Mexican beaches in Mexico.
And I will set that we almost fully attract dot dot dot dot broad sign.
Yes.
An important decrease in groups from San Diego Airport to to the different Mexican beaches, so I could say that.
Red part.
The product that we are put in the market of South, California as the Mexican beaches.
Really competitive airport with a really competitive airlines in terms of their first.
We are really having a great great success on that on that on that strategy for sure. The long term strategy will be I will say.
Lower and Robert but we expect to our proactive offering long hauls.
Sure.
Services to the airports.
Okay. Thank you.
Yeah.
And we will take our next question from Noah Kaye.
Please go ahead.
Hi.
Thank you for taking my question.
Could you give us some color on the commercial front given that the company posted strong numbers.
Yes.
Allison.
In our commercial programs we will.
One of the key parts for surely transformed different layouts.
Airports.
A key part in our strategy.
To keep fresh experience on the commercial area. So we are changing different layouts and nowhere for instance, we are Joseph Chinese completely relate commercial laid out for the <unk> that will help us to increase the the revenue the commercial.
We knew that we will see this year.
Also we have this change on their layouts happening on wireless <unk> Airport.
<unk> airport that will be ready for the summer for instance, but in general terms first we are hiring the chance for.
Reviewing on changing our layouts, bringing view new brands.
And keep the tickets up as high as possible.
First of our strategy then.
The second part is how to explore the new the new era.
The areas that we are developing with the growing of our terminal in that in that site for instance.
Our opinion.
Towards the end of this year, a new food.
Food and beverage area.
Her airport.
We also spent this quarter neither.
Cabos Airport.
The coming two years, we will see a completely.
Completely new offer of commercial areas that will be included in a new terminal productivity out of that.
Also the new terminal decline that will be a collection of a term loan b why not we will wrap additional stages that will put on service in a couple of months. So I would say that in general terms in the second strategy is we need to to take advantage of all the additional meters that we will develop to.
In this five year period ups for adding commercial offering in our terminal.
Third party related with the directly operated business by gap that finance, we are having.
Great increase or we will see.
Increase our number of point of sale for our <unk>.
<unk> the other markets, we will increase in.
I'll leave a 20 point of sales in the coupled to you in the next few years that we will for sure boost our revenue on the on the.
The convenient stores.
Also in the in the alliance.
All business regulatory by GAAP.
We are.
Implement our newest strategy on the <unk> for the case of travels.
We think that we have.
Great impact on the revenue for that specific business line this year.
And also.
Finally, we are we expect that.
To operate new business.
It could be the whole thing.
I should say is under construction today, we expect to open in 2023.
The next step in the hotels would be one that today, we are developing the business plan review.
That would be the presence of the hotel in that area, but.
I will say that our our strategy could be at least three rig.
Pillars related first to two have been related to capture better consumer consumption in the in the thermal cycle related or how to develop the newest basis I'm sorry, how how can we boost.
Revenues in the in the bid.
There are directly operated by <unk>.
Yeah.
Okay. Thank you very much.
Okay.
We'll take our next question from Philippe <unk>.
With Citibank. Please go ahead.
Hi, everyone. Thanks for taking my questions.
I have two questions I'll start with the first one.
Ken can you refresh our memory a little regarding the potential.
Interest in airports outside of Mexico.
And a side of but from Barbados are you.
Do you see do you looking at anything else anything new.
Auctions interesting.
In terms of South America, and especially in Brazil.
Hi, Felipe Thank you for your question yes.
Yes, we are continue in the process of the Barbados airports is the only one that we are already qualified we are expecting only that.
Find out RFP to two four.
For the airport. So that's in the standby in the case of Brazil.
Brazilian Air Force right now they are three around us of three different one run that with three different clusters.
We view these clusters and we are not interested.
Yes.
Sure.
Okay, great. So you're you're not interest is that a is there any specific reason for fitness this not oh that's interesting.
Yes.
However.
Yes.
And the things of the Brazilian market.
I would say that first of all.
We are seeing a really competitive market in terms of our concession or are you just going to the to the beans, and we see the positive results from that.
The buildings.
The multiples of EBITDA multiples of our divisions was really really high I would say that they are out there for GAAP.
We always want that any kind of a conscious decision would be a creep in terms of value. So one of the key points that we are seeing.
Our strategy will be first which could be at the general terms of value.
It adds value to gap.
We are creating value the second part is related.
Our which are our main clients would say.
Markets that we.
He served we serve for instance, when we gave the step into that.
Thank God, we clearly know that all the airlines that operate over there I already clients of gap I would say American Delta Jetblue all the airlines.
It was mainly operate in a local market.
Based on some <unk> that could be exactly the same way of operate.
Marketing.
You arrive to deals with airlines as could be gobbled by yard and so in general terms I will say that we feel more comfort.
We'll now put that in some way to share market with us or would be in some way.
Yes.
We share clients and that is.
Somewhat will give us the chance for four negotiate pockets for new seats for instance, so in general terms I will say that for international expansion, we are going to reduce two lanes the kind of the of the market and satcom.
The possible competition.
Four other bidders that could make.
Really expense here.
Deal that we did not create too.
Due to the company.
So anything Super clear.
And the second one is regarding tariffs.
Ted you said already that are your targets there.
You're expecting to reach near 100% of the maximum tariffs and those are related to inflation.
I was wondering if you see any correlation between oil prices affecting this.
The raise of tariffs and other.
Interest rates and other.
Aspects.
Pushing your your tariffs as well.
Yeah I mean.
Sure we did with the news of cranes.
Cranes yesterday.
I would say that we are really kind of shows about what's going to happen with it.
Product price index in Mexico, because I've been a good day.
All the news that we are seeing is that at least oil and gas pretty high on an additional push our increase.
On inflation.
Or at least in the short term.
So for sure we are beginning to see that we grew faced.
An important inflation during this year.
And with that also.
Given the need for mainly push a little more hour hour hour type the part that will be in some way.
Difficult is that in terms of our concession we only have two windows.
Two to change tariff, we already reduced their first one or January .
So we are expecting for the middle of the year due to mail it may be changed a little uneven.
To adjust our hour buried in line of what is happening with <unk>.
Pleasure.
We have some kind of offset in the in the <unk> studies related with the exchange rate.
In terms of our maximum tariff.
When we have it.
Some increase.
As you know our passengers international partners fees for instance, or in dollar explicitly dollars.
But our concession on the way that we.
Fulfill the maximum turnkey basis, so any change or increase.
On dollar basis vessels will give us in some way the chance.
We will feel that they're in a better way the maximum tariff.
For this year, but I mean.
We really are trying to see how good have either coming months because with the last news.
Say that some of our previous.
Sure when we.
We will change.
Yeah.
Thank you very much super helpful.
We will take our next question from Alejandro semi corner with credit Suisse. Please go ahead.
Yeah, Hi, it's Howard.
Sorry, if you already discussed this.
What we've commented a couple times so having connections.
With my conviction. So just just a quick question on the cost of service.
And to what extent do you believe it could be continued to increase in 2022.
Or what could be a normalized cost of certain passenger going forward.
Thank you Alejandro.
Well, we will continue.
Adjusting because of service.
And the way we are.
Improving.
The capacity of traffic.
I think the best way to see it is in the EBITDA margin and we will continue at the level of $69 58.
Percent.
We had a very good.
The margin this year $69 seven four.
For a full year.
After the chair of Covid.
It was a better result.
Then we cannot.
Continue.
Pushing down the cost of services, we have to normalize the maintenance.
Janitorial security services and tell us in terms of headcount, we have to add more head count the challenging capex.
It has to be.
Deploy and we have a great chance.
There so.
We have built during force our our head count. So there are several issues to consider landscape not only to.
I think that the cost control.
We implemented in 2020 could continue so.
I think our base approaching in the cost of service is to maintain the operation of the airports.
The great level of service.
Income for the passengers and obviously the level of security needed in our operation So.
We will continue looking that the cost of service will be increasing a little bit and normalized at the level of and the margin in the range of 69 to 68 in that range.
And I will add this is.
That.
No our.
I was business is really a business of economy of scales. So each time that we open a new terminal or increase this quarter mean yourself. A term you know we have is it first of all may not jump in terms of the cost per passengers.
As we begin to capture the additional passengers will begin to decrease the cost per bit.
<unk> capacity. So you know in terms of the cost.
Right.
For the passengers when you open new facility. So I can say that we do.
Going to have some of that print.
In some of our airports are the areas where we are.
Increasing but the great part is always to remember that as an economy of scale as soon as the <unk>.
Passengers to introduce these new facilities and we are beginning to gain additional passengers that the cost per passengers will begin to decrease again.
Okay. Thank.
Thank you Raul if it makes sense and then my second.
It's a blow up.
And we do negotiation to Jamaica.
And that you are under this process.
What are the previous expectations, if there are any.
The potential outcome for these negotiations.
In terms of Capex.
Well.
Our intention is to adjust in terms of the capex.
And in terms of the operating expenses, we cannot ask for.
Many studies, it's almost impossible to increase status.
And give the entire support of the rebalancing.
Also in guidance then.
Our approach is to leverage it with their therapy differ the Capex program of deferred the main projects.
Once we reach the passenger traffic before.
'twenty and that's that.
I mean, the main intention obviously in middle of the negotiation.
Race.
Are there options.
But we can.
First we have to to begin with this with this with this process as I said before.
We submit our rebalancing proposal in November 2020.
Therefore.
We are expecting for more than 14 months.
Conversations with the government authorities.
And they have been deferring the beginning of the negotiations in the following week.
We would be in Jamaica.
Two different meetings with different instance of the of the government.
To try to push it.
For the negotiation.
Yeah.
Okay. Thank you.
Now we will take the webcast questions I will now turn the call over to Alejandro <unk>.
Thank you and we have some questions from the webcast. The first one is from tableau kalana.
Metlife and it says could you give us some guidance of the Capex will be deployed through income attended to clinical entry antenna tuning.
Yes.
Thank you Pablo.
Well.
The level of Capex.
As you know we have to.
Fulfill the 100% of the commitment with the government of Mexico intermodal demand.
Erica.
Case of Jamaica.
Ed.
In the negotiation process.
But in any case, we are doing some <unk>.
And investments in this in this air force for <unk> and for Kingston in the case of Mexico, We have a great challenge for this year.
<unk>.
We will deploy around.
6 billion pesos of MVP, and we are going to make it very significant investments in terms of commercials.
As Raul said.
We are.
<unk>.
Under construction for mixed use buildings that will include 180 rooms hotel.
Offices corporate offices commercial areas in the world of her airport, we are in the process of <unk>.
<unk>.
Scott will therefore, we have made significant investments.
On the wrong way for a while the hot airports and therefore for 2022.
Look for about three years.
'twenty two 'twenty three 'twenty four.
Where our total investment.
15 billion peso is will depend on inflation and will depend on the commercial projects also but.
For this for this hesitant attitude.
We are making some.
Significant investments in Guadalajara Airport.
Well. Thank you and the next question also from Tableau says that.
Are you planning for rice, and our debt to begin undercutting bonds that will be taking place in the following weeks.
Yes, Paolo we are going to.
Raise additional funds.
Our plan is to maintain that.
At that same level of leverage.
Our financial strategy is to.
Alright.
And refinanced all that.
So we will continue with this with this is Doug.
With this plan for the following.
Following maturities we have.
In March $1 5 billion peso.
Above that.
And we have also.
For November $2 3 billion pesos of month Tuesday, So we are going to finance.
This and we will continue with that with the same with the same study of leverage.
Thank you.
Then we have another question from Carlos <unk> from Azimut Ken.
What are your margin expectations going forward given the traffic is almost at 2019 level.
Thank you Carlos.
We are going to see the same range.
EBITDA margins 69 68.
The 2021 was a very good year, considering the circumstances of the pandemic.
67% it was one of that.
Hi.
EBITDA margins in the story of the company.
For the following years, we will continue to see this range.
Do not expect to reach 70 or more than 70%.
We have to consider that.
Future expansions will bring.
Operational costs.
In addition, our head count so it will come.
With.
It will come with the most.
Yeah.
Additional costs once we have more expansions so we add.
Commercial revenues we have.
We have more pricing choppy, we have more and more.
I do not think of revenues, but we also have cost cost of services.
And all additional okay.
Cost of operation for the submission of our areas. So.
To be fair.
The range 68 to 69 up to 70 in a Goodyear that's enough to see it.
Thank you Sal.
And the other one was already answered about the cost controls.
Thank you.
Thank you thanks Ellen.
And now I would like to turn the floor back over to Mr. Cao will go quite that for any closing or additional remarks.
Remarks.
Okay.
Thank you very much for your attention before I conclude I just want to mention that the gap day 2022, we held this year in decline.
Will take place on March 24, the decline of airports, where we will be touring the new terminal building.
Where is the cross border bridge.
We hope you can join us for a morning of management presentation on more information on future projects on outlook. Please contact our investor relation teams for more information. Thank you have a nice day.
This does conclude today's program. Thank you for your participation you may disconnect at any time.
Okay.
Okay.
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