MEXICO CITY, July 23, 2012 /PRNewswire/ — Grupo Aeroportuario del Sureste, S.A.B. de C.V. (NYSE:ASR; BMV:ASUR), (ASUR) the first privatized airport group in Mexico and operator of Cancun Airport and eight other airports in southeast Mexico, today announced results for the three and six-month periods ended June 30, 2012.

2Q12 Highlights¹:

• EBITDA² increased by 18.97% to Ps. 740.02 million
• Total passenger traffic was up 7.36%
• Total revenues rose by 16.53% due to increases of 13.19% in aeronautical revenues, 19.38% in non-aeronautical revenues, and 24.64% in construction services revenues
• Commercial revenues per passenger increased by 13.33% to Ps.75.05
• Operating profit increased by 21.52%
• EBITDA margin increased to 58.02% from 56.82% in 2Q11

1. Unless otherwise stated, all financial figures discussed in this announcement are unaudited, prepared in accordance with International Financial Reporting Standards (IFRS) and represent comparisons between the three- and six month periods ended June 30, 2012, and the equivalent three- and six-month periods ended June 30, 2011. Financial figures for the three- and six-month periods ended June 30, 2011 have been restated to reflect IFRS. Results are expressed in nominal pesos. Tables state figures in thousands of pesos, unless otherwise noted. Passenger figures exclude transit and general aviation passengers. Commercial revenues include revenues from non-permanent ground transportation and parking lots. All U.S. dollar figures are calculated at the exchange rate of US$1.00 = Ps.13.4084.

2. EBITDA means net income before: provision for taxes, deferred taxes, profit sharing, non-ordinary items, comprehensive financing cost and depreciation and amortization. EBITDA should not be considered as an alternative to net income, as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity. Our management believes that EBITDA provides a useful measure of our performance that is widely used by investors and analysts to evaluate our performance and compare it with other companies. EBITDA is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

Passenger Traffic

For the second quarter of 2012, total passenger traffic increased year-over-year by 7.36%. Domestic passenger traffic increased by 14.95% while international passenger traffic increased by 1.79%.

The 14.95% growth in domestic passenger traffic growth was driven by increases at Cancun, Cozumel, Villahermosa, Minatitlan and Oaxaca. The 1.79% growth in international passenger traffic resulted mainly from an increase of 1.73% in international traffic at the Cancun airport.

Passenger traffic for the six-month period ended June 30, 2012 increased 8.90% compared to the same year-ago period, reflecting increases of 17.10% in domestic passenger traffic and 4.01% in international passenger traffic.

Table I: Domestic Passengers (in thousands)

Note: Passenger figures exclude transit and general aviation passengers.

II: International Passengers (in thousands)

Note: Passenger figures exclude transit and general aviation passengers.

Table III: Total Passengers (in thousands)

Note: Passenger figures exclude transit and general aviation passengers.

Consolidated Results for 2Q12

Total revenues for 2Q12 increased year-over-year by 16.53% to Ps.1,275.51 million. This was mainly due to increases of:

• 13.19% in revenues from aeronautical services, principally as a result of the 7.36% rise in passenger traffic;
• 19.38% in revenues from non-aeronautical services, reflecting the 21.49% increase in commercial revenues detailed below; and
• 24.64% in revenues from construction services as a result of capital expenditures and other investments in concessioned assets during the period.

ASUR classifies commercial revenues as those derived from the following activities: duty-free stores, car rentals, retail operations, banking and currency exchange services, advertising, teleservices, non-permanent ground transportation, food and beverage, and parking lot fees.

Commercial revenues increased by 21.49% year-over-year during the quarter, principally due to the 7.36% increase in passenger traffic. There were increases in revenues in the following activities:

• 43.20% in advertising;
• 39.29% in teleservices;
• 24.93% in other revenue;.
• 24.90% in duty-free stores;
• 23.65% in retail operations;
• 20.01% in banking and currency exchange services;
• 16.60% in car rental revenues;
• 12.73% in food and beverage;
• 2.16% in ground transportation; and
• 1.87% in parking lot fees.

Construction revenues and expenses. As a result of ASUR’s adoption of IFRIC 12 “Service Concession Contracts” ASUR is required to include in its income statement an income line reflecting the income from construction or improvements to concessioned assets made during the period. During 2Q12, ASUR recognized Ps.168.19 million in revenues from “Construction Services” because of improvements to its concessioned assets, a 24.64% year-on-year increase. The same amount is recognized under the expense line “Construction Costs” because ASUR hires third parties to provide construction services.

Because equal amounts of Construction Revenues and Construction Expenses have been included in ASUR’s income statement as a result of the application of IFRIC 12, the increase in Construction Revenues in 2Q12 did not result in a proportionate increase in the EBITDA Margin, which is equal to EBITDA divided by total revenues.

Total operating costs and expenses for 2Q12 increased 11.89% year-over-year. This was primarily due to the following increases:

• 24.64% in construction costs, due to greater improvements made to the concessioned assets during the period;
• 5.38% in costs of services, principally reflecting higher energy costs, as well as higher cost of sales resulting from the increase in revenues at the convenience stores directly operated by ASUR, and fees paid to third parties in connection with ASUR’s participation in international bidding processes. Higher insurance, as well as bond required in connection with an appeal of a decision overturning a tax credit, and higher maintenance also contributed to the increase;
• 12.46% in administrative expenses mainly due to higher professional fees paid to third parties;
• 19.10% in the technical assistance fee paid to ITA, reflecting the increase in EBITDA for the quarter (a factor in the calculation of the fee);
• 14.49% in concession fees paid to the Mexican government, mainly due to an increase in regulated revenues (a factor in the calculation of the fee); and
• 4.84% in depreciation and amortization, resulting mainly from capitalized investments.

Operating margin for the quarter increased to 50.21% from 48.14% in 2Q11. This was mainly due to the 16.53% increase in revenues which more than offset the 11.89% increase in expenses during the period.

Comprehensive Financing Result (Cost) for 2Q12 increased year-over-year by Ps.26.02 million, to Ps.33.13 million from Ps.7.10 million in 2Q11, principally due to a higher foreign exchange gain.

During 2Q12, the Company reported a foreign exchange gain of Ps.14.33 million which principally resulted from the 14.38% depreciation of the Mexican peso against the U.S. dollar during the period.

Interest expense declined in 2Q12 by Ps.6.48 million year-on-year, principally reflecting lower debt levels as a result of the Ps.368.0 million in principal payments made during 2Q12. Interest income increased by Ps.7.68 million year-on-year reflecting higher investments resulting from the increase in net income during the period.

Income Taxes. Following the changes in Mexican tax law that took effect January 1, 2008, which established a new flat rate business tax (“Impuesto Empresarial a Tasa Unica“, or “IETU”) and eliminated the asset tax, the Company evaluates and reviews its deferred assets and liabilities position as applied by Mexican Tax laws.

Income taxes for 2Q12 increased by 42.06%, or Ps.62.27 million year-over-year, principally due to the following factors:

• Provisional IETU payments of Ps.2.67 million by some of ASUR’s subsidiaries;
• A Ps.68.16 million increase in the provision for income taxes, as a result of a higher taxable base resulting from the 16.53% increase in revenues during the period, which more than offert the 11.89% increase in operating costs.
• A Ps.0.67 million increase in deferred income taxes resulting from the recognition of inflationary effects;
• A Ps.9.79 million decline in deferred IETU because of the expiry of tax credits; and
• A Ps.0.26 million decline in the asset tax for amounts that cannot be credited against other taxes.

Net income for 2Q12 increased 19.99% to Ps.463.23 million from Ps.386.05 million in 2Q11. Earnings per common share for the quarter were Ps.1.5441, or earnings per ADS (EPADS) of US$1.1516 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.1.2868, or EPADS of US$0.9597, for the same period last year.

Table IV: Summary of Consolidated Results for 2Q12

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps.13.4084.

Table V: Commercial Revenues per Passenger for 2Q12

Note: For purposes of this table, approximately 51,100 and 45,900 transit and general aviation passengers are included for 2Q11 and 2Q12, respectively.

(1) Revenues from direct commercial operations represent ASUR’s operation of convenience stores in airports and the direct sale of advertising space.

Table VI: Operating Costs and Expenses for 2Q12

Consolidated Results for the First Half of 2012

Total revenues for 1H12 increased year-over-year by 18.72% to Ps.2,561.5 million, mainly due to the following increases:

• 14.85% in revenues from aeronautical services as a result of the 8.90% increase in passenger traffic during the period;
• 22.27% in revenues from non-aeronautical services, principally as a result of the 24.02% rise in commercial revenues detailed below; and
• 31.40% in construction services in connection with higher investments during the period.

Commercial revenues for 1H12 rose by 24.02% year-over-year, principally as a result of revenue increases in the following areas:

• 37.64% in advertising;
• 28.21% in duty-free stores;
• 27.21% in retail operations;
• 23.21% in other income;
• 19.47% in banking and currency exchange services;
• 18.10% in food and beverage;
• 15.90% in ground transportation services;
• 15.53% in teleservice;
• 14.00% in car rentals; and
• 2.66% in parking lot fees.

Total operating costs and expenses for 1H12 rose 13.70%, mainly due to the following increases:

• 31.40% in construction costs resulting from higher investments;
• 8.32% in cost of services, principally reflecting higher energy costs, surveillance and maintenance, and professional fees to third parties in connection with ASUR’s participation in international bidding processes. Higher costs of sales derived from revenue growth at the convenience stores directly operated by ASUR also contributed to the increase;
• 10.38% in administrative expenses, principally due to travel expenses in connection with international bidding projects;
• 20.81% in technical assistance costs, reflecting the corresponding increase in EBITDA during the period;
• 16.19% in concession fees, mainly due to the increase in regulated revenues (a factor in the calculation of the fee); and
• 4.96% in depreciation and amortization mainly due to changes in the depreciation and amortization rates.

Operating margin increased to 53.48% for 1H12, from 51.43% in 1H11. This was mainly the result of the 18.72% growth in revenues which more than offset the 13.70% increase in operating expenses for the period.

Net income for 1H12 increased by 24.61% to Ps.1,001.20 million. Earnings per common share for the period were Ps.3.3373, or earnings per ADS (EPADS) of US$2.4890 (one ADS represents ten series B common shares). This compares with Ps.2.6781, or EPADS of US$1.9974, for the same period last year.

Table VII: Summary of Consolidated Results for 1H12
(in thousands)

Note: U.S. dollar figures are calculated at the exchange rate of US$1 = Ps. 13.4084.

Table VIII: Commercial Revenues per Passenger for 1H12
(in thousands)

* For purposes of this table, approximately 106,100 and 102,800 transit and general aviation passengers are included for 1H11 and 1H12, respectively.

(1) Revenues from direct commercial operations represent ASUR’s operation of convenience stores in airports and the direct sale of advertising space.

Table IX: Operating Costs and Expenses for 1H12
(in thousands)

Tariff Regulation

The Mexican Ministry of Communications and Transportation regulates the majority of ASUR’s activities by setting maximum rates, which represent the maximum possible revenues allowed per traffic unit at each airport.

ASUR’s regulated revenues for 1H12 were Ps.1,618.05 million, resulting in an annual average tariff per workload unit of Ps.159.66. ASUR’s regulated revenues accounted for approximately 63.17% of total income for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with the maximum rates on an annual basis at the close of each year.

Balance Sheet

On June 30, 2012, Airport Concessions represented 82.20% of the Company’s total assets, with current assets representing 16.12% and other assets representing 1.67%.

Cash and cash equivalents on June 30, 2012, were Ps.1,569.09 million, a 2.57% increase from the Ps.1,529.67 million in cash and cash equivalents recorded on December 31, 2011.

Shareholders’ equity at the close of 2Q12 was Ps.15,393.78 million and total liabilities were Ps.3,338.74 million, representing 82.18% and 17.82% of total assets, respectively. Deferred liabilities represented 63.74% of the Company’s total liabilities.

Total bank debt at June 30, 2012 was Ps.511.2 million, including Ps.1.5 million in accrued interest. During August and September of 2010, Cancun Airport entered into two three-year credit agreements of Ps.350 million and Ps.570 million with two banks. The terms of the agreement include a floating interest rate based on the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 1.5% and quarterly principal payments. In addition, in September of 2011, Veracruz Airport entered into a three-year credit agreement of Ps.50 million. The terms include a floating interest rate based on the Tasa de Interes Interbancaria de Equilibrio (TIIE) plus 0.75% and quarterly principal payments.

During the quarter, ASUR made principal payments of Ps.92.5 million in connection with the Ps.350 million and Ps.570 million three-year credit agreements.

In August 2010 ASUR purchased a hedge against the risk of a significant increase in TIIE under its Ps.350 and Ps.570 million credit agreements. The interest rate was fixed for three years at 6.37%, 6.33% and 6.21% per annum. The interest rate hedge during the quarter resulted in a Ps.0.2 million gain as of May, 2012. This hedge agreement terminated in accordance with its terms at the end of May 2012, and ASUR has not entered into any new hedge agreements since that date.

In the fourth quarter of 2011, Cancun Airport obtained authorization for two new bank loans from Banamex and BBVA Bancomer of US$300 million and Ps.1,500 million, respectively. These loans remain subject to certain conditions precedent, including the negotiation of definitive documentation for the loans. To date, ASUR has not yet made use of the authorized credit lines.

Capital Expenditures

During 2Q12, ASUR made investments of Ps.130.54 million as part of ASUR’s ongoing plan to modernize its airports pursuant to its master development plans.

Recent Events

ASUR-Highstar Consortium Named Winner of Bidding Process for LMM Airport

On July 19, 2012, the Puerto Rico Public-Private Partnership Committee declared Aerostar Airport Holdings the winner of a public bidding process to become the private operators of the Luis Munoz Marin international airport in San Juan, Puerto Rico (“LMM Airport”). Aerostar Airport Holdings is a limited liability company owned 50% by each of ASUR (through its Cancun Airport subsidiary) and Highstar Capital IV. Aerostar is expected to enter into a 40-year lease agreement for LMM Airport with the Puerto Rico Ports Authority.

Pursuant to the terms of its bid, Aerostar Airport Holdings will make an upfront payment of approximately $615 million to the Puerto Rico Ports Authority. This payment is expected to be funded at closing by a combination of debt financing and equity contributions on a 50-50 basis from each of ASUR and Highstar Capital IV. The closing of the lease remains subject to a number of conditions precedent, including the award of a Part 139 operating certificate by the Federal Aviation Authority (FAA). ASUR is currently evaluating the accounting treatment of its investment in Aerostar.

New Mexican Accounting Pronouncements

The following is a list of the new IFRS pronouncements which became effective as of January 1, 2012 as well as new pronouncements which will be effective as of January 1, 2013 and thereafter, in each case as issued by the IASB.

IFRS 10 Consolidated financial statements – This standard replaces IAS 27 and SIC 12. Its objective is to establish principles for determining when an entity should be consolidated without distinguishing between subsidiaries and special purpose entities. The principles include the analysis of the design and purpose of the entity, the relevant activities affecting the entity’s results, and how they are managed. Effective on January 1, 2013, with early application permitted.

IFRS 12 Disclosure of interest in other entities – This standard includes the disclosure requirements for all forms of investment in other entities, including joint ventures, associated companies, special purpose entities and other arrangements. Effective on January 1, 2013, with early application permitted.

IFRS 13 Fair value measurement – This standard aims to improve consistency and reduce complexity by providing a precise definition of fair value, as well as a single source of requirements for measurement and disclosure of fair value. The inclusion of credit risk for fair value measurement of derivative financial instruments is mandatory. Effective on January 1, 2013, with early application permitted.

IFRS 9 Financial instruments- IFRS 9 retains but simplifies the measurement model and provides two main categories for measurement of financial assets: fair value and amortized cost. The basis for its classification is according to the business model. Effective for periods that begin on or starting from January 1, 2015, with early application permitted.

Amendment to IAS 1 Presentation of other comprehensive income – This amendment requires entities to split items presented in the comprehensive result in two groups based on whether the items are potentially reclassifiable to profit or loss in the future or not. Effective for annual periods starting on July1, 2012 (retrospective application), early application is accepted, if applied earlier should be disclosed.

The Company is in the process of reviewing this new accounting pronouncements to determine their applicability and their effect on its results of operations.

IFRS Adoption

In compliance with regulations established by the Mexican National Banking and Securities Commission (CNBV), as of January 1, 2012 the Company has adopted International Financial Reporting Standards (IFRS) as the accounting standards to prepare its financial statements.

Furthermore, and in compliance with INIF 19 “Changes derived from the adoption of IFRS”, the most significant accumulated changes in net shareholders’ equity as of January 1, 2011 are included in the table below:

The following table presents the principal effects of IFRS on Shareholders’ Equity as of June 30, 2012, December 31, 2011 and January 1, 2011.

See REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS at the end of the release for notes on IFRS transition effects.

The following table presents the principal effects of IFRS on the Income Statement for the six-month periods ended June 30, 2011 and 2012.

See REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS at the end of the release for notes on IFRS transition effects.

Analyst Coverage

Actinver Casa de Bolsa, Barclays, BBVA Bancomer, Bofa Merril Lynch, Citi Investment Research, Credit Suisse, Grupo Bursatil Mexicano, HSBC, Intercam Casa de Bolsa, Itau BBA, INVEX, JP Morgan, Morgan Stanley, Mornigstar, Santander Investment, Scotia Capital, UBS Casa de Bolsa, Vector.

Note: ASUR is covered by the aforementioned analysts. Please note that any opinions, estimates or forecasts regarding the performance of ASUR issued by these analysts reflect their own views, and therefore do not represent the opinions, estimates or forecasts of ASUR or its management. Although ASUR may refer to or distribute such statements, this does not imply that ASUR agrees with or endorses any information, conclusions or recommendations included therein.

About ASUR:

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a Mexican airport operator with concessions to operate, maintain and develop the airports of Cancun, Merida, Cozumel, Villahermosa, Oaxaca, Veracruz, Huatulco, Tapachula and Minatitlán in the southeast of Mexico. The Company is listed both on the NYSE in the U.S., where it trades under the symbol ASR, and on the Mexican Bolsa, where it trades under the symbol ASUR. One ADS represents ten (10) series B shares.

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR’s filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

# # # TABLES TO FOLLOW # # #

REVIEW OF THE IMPACT OF TRANSITIONING TO IFRS

Below is a description of significant changes on IFRS implementation:

a) Inflation

The Company determined the inflationary effects relating to the capital stock and legal reserve accounts should be eliminated in accordance with International Accounting Standards “IAS” 21 and 29, in effect at the adoption date.

Based on IFRS 1, the Company has determined, it does not have to eliminate the effects of inflation on concessions. This due to the decision of the Company to apply the transition rules of IFRIC 12 as part of the initial adoption of IFRS 1, which allows for the exception from retrospective application in cases where the “impracticability” of reconstructing asset balances is too significant. Therefore, the Company has recorded as opening balances for the adoption of IFRIC 12, the account balances previously registered under Mexican FRS, which contain the effects of inflation through December 31, 2007.

b) Deferred taxes and deferred income tax or IETU tax

The Company has determined that it must recognize both forms of taxes (income tax or flat tax in each one of its subsidiaries) for the determination of deferred taxes based on its income projections.

c) Labor liabilities and employee profit sharing

At the adoption date, the Company eliminated the liability relating to deferred profit sharing and severance as an adjustment to opening balance sheet.

d) Creation of a reserve for unused vacations

At the adoption date, the Company recognized an accrual for the vacation rights not used by year-end, according to IAS 19 “Employee Benefits”.

e) Non ordinary items in the income statement

The line in the income statement named “Non ordinary items” has been reclassified to operating expenses since due to IFRS does not exist the extraordinary items.

SOURCE Grupo Aeroportuario del Sureste, S.A.B. de C.V.