Good day and welcome to the OMA Fourth Quarter 2016 Earnings Conference Call. Today’s conference is being recorded. At this time, I’d like to turn the conference over to Vicsaly Torres. Please go ahead.

Good morning. Welcome to OMA’s fourth quarter 2016 earnings conference call. Joining me this morning are Emmanuel Camacho, and Laury Franco from the IR team, as well as our Chief Accounting Officer, Jesús Villagómez. I also want to introduce Paul Rivero, who joined us at the end of last year as the newest member of our IR team. This morning, I will review our operational performance and financial results; secondly, provide an update on the execution of Master Development Program; and finally, discuss our outlook for 2017. Then, we will be pleased to answer your questions. OMA delivered another strong performance in the fourth quarter and for the full year 2016. For the full year, we set records for passenger traffic, revenues, adjusted EBITDA, adjusted EBITDA margins and consolidated net income. We ended the year with more than Ps. 3,000 million in cash and our investment program for 2017 will be completely funded out of our cash balances and expected operating cash flow generation. Turning to our fourth quarter operational performance. We continued to demonstrate the strong momentum in all areas of the business. Passenger traffic grew 12.5% in the quarter to 4.9 million passengers, led by domestic traffic growth. 11 of our 15 airports grew passenger traffic. Passenger traffic has now grown for 23 quarters in a row. The growth reflects the expansion of the airlines, new route openings, addition of frequencies, and increasing load factors. During the quarter, 9 of the 14 main scheduled airlines in our airports increased passenger volumes with the largest contribution to growth from VivaAerobus, Volaris, Aeroméxico and TAR. 13 new routes opened in the quarter, nine domestic and four international. Our three domestic routes closed. For the full year 2016, we had 41 route openings and 12 closing for a net of 29…

Thank you. [Operator Instructions] And we’ll go first to Mauricio Martínez of GBM. Mauricio Martínez: Hi. Good morning, everyone, and thank you for taking my question. My first question is regarding the Terminal 2 hotel in Mexico City, as we saw slowdown revenue due to I think low occupancy rate which dropped like 500 basis points. What is the main reason for that drop and what level of occupancy rate are you expecting for 2017?

Hello, Mauricio. Thank you for your question. Well, your question is related to the hotel and the occupancy rate in the hotel. We have a decreased a little bit occupancy rate but the average room rate increased in a big percentage. So, we are rebalancing the better average room rate with the occupancy rate. We are maximizing our revenues with less occupancy rate but higher room rates. Additionally, in the fourth quarter, we did not have the same occupancy because Formula One benefit of last year. Mauricio Martínez: Okay. And my second question is on the cost-of-service front. As we did see an improvement on that line during the year, do you expect this performance to continue in 2017, or should we expect an increase? And if you can share with us your expectations for EBITDA margin?

Okay. Cost of services increased in fourth quarter. Every year, it’s common having a higher cost of services in the fourth quarter because we finalize all our programs in terms maintenance, suppliers and everything. We put a lot of effort to control our cost, trying to increase our efficiency. I think it’s more controlled, [ph] these increases in cost of services in the fourth quarter. Mauricio Martínez: And any guidance for EBITDA margin, Vicsaly?

For 2017, we don’t have specific guidance for that concept. We will try to increase our efficiency with -- because our target is at least maintain the margins. But if we can increase it, we will do it. We received in 2016 a big expansion in margins because we will have significant increases in traffic and significant increases in tariffs. But this year, the increases in tariffs will be more moderate and the traffic -- we don’t know specific number in terms of traffic. We are expecting increases in traffic, but we don’t know what is the number. So, if traffic continues to be strong with increases in tariffs, then we are going do it. If possible, we will have some expansion in margins.

Next, we’ll go to Pablo Barroso of Credit Suisse.

Hello. Good morning. Congratulations on the results, Vicsaly. I have a couple of questions over here. There has been some, on the local news that ICA is starting the bankruptcy restructuring process. I just wanted to see what do you guys think, and if there is change in the control group performance; is there tag along right? That’s my first question. And my second question is regarding commercial revenues. We have been witnessing a really strong performance in Monterrey retail restaurants and car rentals as you mentioned before. Should we expect this along 2017, this growth trend or more consolidated trends? Thank you.

Thank you, Pablo. Related to your first question about the strategic partners that is ICA basically. We don’t know a strategic plan. We know that the participation in services at the Aeroportuario [ph] that is our expectation further are guarantee loan. [Ph] So, that means when they declare Chapter 11 or the process, that participation is not included in the [indiscernible] by the suppliers. That is the only that I know and I think that is a question for ICA about their plans.

Could you just repeat the last past, that it’s not, I couldn’t hear you. Just a last part that it’s not -- I know it’s on the guarantee return to -- it has no guarantee return. It’s on guarantee to Fintech but could you repeat the last part?

Yes. That means that that participation or ICA’s participation instead is not included in the all assets that are going to shared by the suppliers.

Okay.

So, the participation is going be part of the payment for Fintech.

And regarding the commercial revenues?

Yes. And the commercial revenues, as I mentioned in my remarks, in 2017, we are not expecting significant increases in commercial activities specifically. Because the expansion terminals will be completed in 2018. So in terms of commercial areas inside the terminals is because to increase more than the traffic increases. In terms of diversification activities, we have positive expectations in terms of OMA Carga because we’ve doubled the capacity this year for ground cargo activities. And also we will continue to commercialize the industrial [ph] part because we have two new warehouses built. So, we expect getting some contracts for those warehouses.

Just one follow-up, regarding the terminal expansion, you will be deploying CapEx out of your Master Development Plan, 49 will be to terminal expansion, right? So we could see the more positive effect on 2018?

In terms of commercial revenues, yes. Because on the Master Development Programs, 10% of the total spaces expanded could be commercial area.

And up next from Scotiabank we got to Ramón Obeso. Ramón Obeso: Hi, Vicsaly and team. Thank you for the call. Two questions. The first one is could you give us some color on the Ps. 156 million in interest income related to be update of the maintenance provision? I think it’s a non-cash item, but I would like to confirm this with you and try to understand better rewards behind this. And my second question is regarding industrial park, could you share with us the price per square meter for the two facilities already in operations?

About the increases in interest income, variation in fourth quarter seen is mainly due to an increase in the discount rate used to calculate the present value of the major maintenance provision. The update [ph] generated a decrease in the liability, which was also recorded as a benefit in the income statement in the interest income line item, basically that is the effect. And in terms of industrial park, as you know, we have two warehouses leased. The first warehouse is warehouse of 7,400 square meters. The contract that we have on that warehouse is, our contract for three years and four months. The total value of the contract for the three years and four months is for $1.2 million. And the second warehouse is almost 5,000 square meters warehouse. We have also a client there with the contract of three years and six months with a total value of $700,000. And last month, we finished the construction of two more warehouses. So, this year, we could have new revenues for these two new warehouses. The contracts that I’ve mentioned were started in May, the first one; and in June, the second one.

[Operator Instructions] And we’ll go next to Ulises Argote from Santander.

Hi, Vicsaly and team. Good morning. Just to clarify with the tariff increases you will be doing in April, what is your expectation for tariffs in 2017 as a percentage of the maximum allowed tariffs? And then, the second one, if you could provide an update on M&A opportunities you might be looking at? Thanks.

Thank you, Ulises. Yes, in terms of increases in tariffs, we expect to increase domestic passenger charges in average for 5%. And we also expect to increase around 6% in airport services, which is the average of both of Mexican CPI and CPI from November 2015 to November 2016. We have filed with DGAC our rate proposals, which will take effect in April, as I mentioned in my remarks. These increases will allow us to bring maximum cash compliance to a level between 95% and 96%, approaching progressively to the level of 99%. And we will have a total of four or five airports with more than 99% for maximum tariff. And in terms of your -- could you repeat your second question? M&A opportunities, right?

Yes. Just an update on the M&A you might be looking at.

Well, as you know one of our pillars of growing in diversification growth is new concession. We have a pacific team analyzing different projects in the region, basically Latin America. We have analyzed different projects but at this moment we don’t have any specific. We are not in any specific project.

Our next question comes from Augusto Ensiki from HSBC.

Hi. Good morning. Thanks for questions. Just to clarify on that interest income term; that is one-time of entity adjustments, so that’s not related to debt or to cash investments, correct?

Correct. It’s one-time effect. This year in 2016, interest rate increased in U.S. and in Mexico. We need to use a discount rate to a calculate the net present value based on the market condition interest rate. So, we increased the discount rate and that is the effect, that it’s only effect.

Okay, great. Thank you. And so regarding -- so, you’re bringing up the domestic passenger rate, is there any similar move for international passengers, or I guess the question is, are you offering incentives to get those new international routes that you mentioned?

The domestic and international increases will be between 4% and 5% both.

Okay. But, so, there is no incentives in terms of -- for new routes?

Yes. We have not a specific program, incentive program to motivate airlines to operate new routes in our airports and increase the volume operate in our airports. But basically this year as we are defining that incentive program.

And sorry, just one last follow-up. You said you didn’t have any specific projects at this time, but is the team looking at the upcoming airport concessions in Brazil, I think the coming option I guess next month?

Our team analyzed all the projects that they know. But in our perspective, Brazil is no -- in the best condition now. And I don’t think Brazil concessions are interest -- we interest in Brazil market right now.

We’ll take our next question from [indiscernible]

Hi. Congratulations on the results. I have two questions. Do you -- what about the plans to privatize more airports in Mexico? Are you interested in any of that; do you have any news related to that? How you [indiscernible] OMA to receive a strategy plan for Monterey’s industrial park or other initiatives that you have in mind. Thank you?

At this moment, we don’t know or we don’t have new news about new Mexico -- new construction in Mexico. We are interested in any project in the region and mainly in Mexico when those airports or the process for those airports come up there, we are going to analyze them. But we don’t have no new news. And in terms of the diversification projects or new initiatives in our airports, we are making some studies, market studies in our airports to know what type of business we can develop in each one. We know that there is some potential in Chihuahua for another industrial park. We know that there is potential to develop hotels in Tampico and Ciudad Juarez airports. But at this moment, we don’t have -- we are in a preliminary basis analyzing the projects, trying to find a partner for those projects, but could be some potential projects in the medium term.

There appears to be no further questions at this time. Ms. Torres, I would like turn the conference back over to you for any additional or closing remarks.

Thank you. On behalf of OMA, I want to thank all of you again for your participation in this call. Emmanuel, Paul, Laury and I are always available to answer your question. And we hope to see you soon at our offices in Monterrey. Thank you and have a good day.

And this does conclude today’s presentation. Thank you all for your participation.