Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (GAPB) Earnings Call Transcript & Summary

Good day, everyone, and welcome to the Conference Call Fourth Quarter 2022. [Operator Instructions] It is now my pleasure to turn the conference over to CEO, Raul Revuelta. Please go ahead.

Thank you. Good morning, everybody, and thank you for joining us today during 2022. Happy to report that GAAP it previous records on all fronts, making this year the more significant in one in our trajectory. Total revenues were up by 57% compared to 2019, supported by continued passenger traffic growth and a strong commercial revenue increase. Throughout the year, we transported almost 57 million passengers, a 60.4% increase over 2019. With this figure, GAP was positioned as the largest airport operator in Mexico for the third consecutive year, representing approximately 31% of the total market. This performance was mainly driven by the growth of the Tijuana, Los Cabos and Puerto Vallarta airports which was outstanding. Likewise, in Guadalajara, we are finally seeing a return to 2019 levels. In Jamaica, passenger traffic also showed struggling signs of recovery compared to 2019. If you recall, passenger traffic numbers were deeply impacted by the covenant related government-imposed travel restrictions, which were very severe and delayed the recovery in that country. We continue to work through with airlines seeking to secure additional routes and frequencies. Thus, during the first quarter, GAAP added 12 new international group and 4 domestic ones. On February 15, the airline Aramark announced the suspension of operations for financial reasons and there is difficulty in closing agreements to operate in the long term under viable conditions. Aramark operated only in the airport of Guadalajara, Puerto Vallarta and Aguascalientes without exclusive routes, representing 0.23% of total passenger traffic at our Mexican airports. Moving on to our revenue performance. Excluding IFRS 12, during 2022, we reached revenue of MXN 22.5 billion. Aeronautical revenues increased by almost 55% versus 2019, driven mainly by passenger traffic growth as well as increase in maximum tariff inflation. On the other hand, commercial revenue increased by almost 30% compared to 2019. This was due to the additional commercial spaces in Montego Bay, Los Cabos and Guadalajara. In addition to the renegotiation of pad contracts under better conditions for GAAP compared to the previous one. Additionally, revenues from food and beverage and retail stores accounted for the most on the growth. With respect to business lines operated directly by us increased by 35% due to the higher revenues for packing lots and convenience stores. However, this was offset by weak advertising revenues, which were initially impacted at the beginning of the pandemic and have struggled to regain pre-COVID 2019 levels. In 2022, EBITDA was MXN 16.1 billion, which was the result of various factors, including an outstanding faster profit recovery. Tariff increase and higher commercial spending per passenger. This was partially offset by the higher cost of service, mainly related to the opening of the new terminal processor building in Tijuana, the new commercial spaces in Los Cabos Airport as well as the new VIP launches. Personnel expenses rose due to the increase of headcount, mainly related to the larger number of operations. The effect of inflation and minimum wage also impacted maintenance, janitorial and security costs. Despite the challenge in 2022, we were able to successfully reach the highest EBITDA margin in the history of cap. Net comprehensive income increased by MXN 2.2 billion compared to 2021 or 34%. This increase was below the net income increase of 52%. It was originated by the currency translation effect resulting from the valuation of Jamaican airports then eliminated in U.S. dollars due to the 6% appreciation of the peso. On the other hand, the effective tax rate increased from 23% in 2021 to 25% in 2022. It was derived mainly from the effect of high concession over the net financial liability position, which increased the taxable income of 2022. On the balance sheet front, cash and cash equivalents reached at MXN 12.4 billion at the end of the year and that was a total of MXN 34.3 billion. Thus, according to this, we continued on a healthy leverage level at our net debt-to-EBITDA ratio of 1.4x. Moving on to the CapEx. The construction of the second one will continue at the Guadalajara airport in addition to the construction of a new commercial mixed-use building. That includes a help with 180 rooms corporate office and commercial spaces. We expect that this building will be completed at the end of 2023, and we look forward to sharing those updates with you in the future communications. In Tijuana, the construction of the first phase of the terminal processor building concluded initiating operations in May of 2022. This new building completely renews the potential of success of this airport as it will achieve several objectives. For one, it will raise the airport capacity to go come additional flights, routes and frequencies. It will also really expand our ability to better serve international markets by complementing the rest functionality of the cross-border bridge. Additionally, we are expecting to reopen our routes from China at the end of this year. At Los Cabos, we continued expansion of the international terminal building that will add about 20,000 square meters. In Puerto Vallarta, we began the construction of the second terminal building orientated to the Neptune energy concept. Now according to our guidance for 2023, we expect sustainable passengers growth across our network of airports. This is based on our view of airlines frequency and feeds offerings. Despite the high passenger scrubber levels at the beginning of the year, we believe this will adjust throughout the year to deal and expect 6 to day increase compared to the last year. This correlated with the increase in revenue in both Aeronautic and non-aeronautical. Aeronautical revenues are expected to increase from 12% to 14% due to passenger traffic increase and inflation, which have already been passed sent in January. Then the non-aeronautical revenue are expected to grow from 13% to 15%, considering passengers traffic growth, inflation and the development of additional business lines, such as the opening of 7 community stores and 1 additional VIP launch as well as change in existing contracts. On the EBITDA margin side, we expect a 70% margin plus or less 1%. This is mainly due to the opening of new operational areas that will require more janitorial, security and maintenance services. In addition to the recent minimum wage increase in Mexico as well as the new changes in the labor road. The CapEx we expect to deploy is MXN 10.2 billion. This is 75% related to CapEx committed and 25% related to commercial investments. Aside from the committed CapEx in Mexico for this year, which amounts to MXN 4.5 billion, we are also taking into account the forecast of land for future expansion in Guadalajara. This will be for about MXN 1.2 billion as well as around MXN 1 billion for CapEx that was deployed in 2022, but will be paid until 2023. We also include about MXN 1 billion in investments in Jamaica. In Jamaica, CapEx has been limited as a result of our waiver agreement with authorities until we complete our renegotiation of the capital development program. However, some investments must be met and cannot wait any longer. On the commercial side, this includes the last phase of the construction of a mixed-use building Guadalajara as well as the expansion of the parking lots and the opening of additional business lines that are operated directly by us. With this, I would like to thank for all of your attention. We are now ready to take your questions. Operator, please open the line for questions.

[Operator Instructions] And we'll take our first question from Guilherme Mendes with JPMorgan.

2 questions actually, the first one is regarding the potential upgrade to at one of the Mexico vicinity. I just wanted to hear your thoughts on the potential time of it? And the second question is regarding the Jamaica contract rebalance, what are the expectations also in terms of timing.

In terms of the category, I will say that the federal government still hasn't the schedule for recovery of the category in the first half of the year, we really don't have additional information on that, at least what the authority is saying and is working in, that is the original schedule of May of this year for the recovery of the cater. But we don't have, I mean, further information on that. We are more -- our personal view is that this could happen more in the third to fourth quarter of the year. But I mean, we need to have more information or at least in our position, in our guidance, for instance, we are not considering, at least for the numbers that we released in our guidance, the recovery of the category.

Regarding your second question, we are working with the Jamaican government in order to try to reach an agreement, we already sent a proposal and they are in the process of reviewing with their advisers, and they are going to send to the cabinet a proposal, then we will have another deep conversation regard to this and probably -- our best estimate is April, May to have a conclusion of the process.

So maybe one quick follow-up on the rebalance in Jamaica. Should you expect a reduction on CapEx or an increase in tariffs? What are likely the shortcome of the rebalance?

Well, it is a mix. We cannot release too much about this. But our target is to balance the cash flows of every concession from MEG and from Kingston. So it is a balance, a good price and include CapEx. CapEx and different and OpEx. So it's a full review of the model.

We'll move next with Raphael Frankel with Bradesco BBI.

I have a couple as well. The first one is on the cost side. When we look at the cost of services that you reported in the fourth quarter, I mean, it tends to be heavier on the OpEx side. But just if you can elaborate, you mentioned some of the pressures that you're facing in your initial comments are old, but if you can expand a little bit more on what you're expecting for cost of services, especially as you open these new areas in 2023? And the second one is on the dividend payment. If you can just take us a little bit through your thinking. I mean, I know that this is going to be later disclosed, but just how you think of the dividend, especially considering the CapEx commitments that you have going on this year? And if you can remind us what your -- what would be the lowest cash balance that you'd be comfortable with, just to put that dividend in perspective and frame it.

This is Saul. I will begin with the part of the cost of service. For sure, in all the infrastructure, when we deploy additional square meters, we need to have some additional maintenance security costs, for instance. In the case of Tijuana, was our biggest new terminal that already opened that for sure impacted the result -- but we also are having during 2023 important increases from additional square meters for in the case of Cabos and in the case of Guadalajara Airport also. So for sure, it is always -- we need to think that the cost will arrive first at the revenue in some way the -- all the maximization of the use of the infrastructure was going to happen as soon as we begin to have a bigger increase on the time or additional passengers. So I will say that the first impact in some ways during the next couple of years, we're going to see an increase on the economies of scale in our terminals. But always, when we are in the middle of this kind of the expansion plan, we're going to have increasing costs in terms of million square meters. The other part that will be really -- I mean, important to follow in the -- at least in this year and we begin to see it on the past years. What is related with the salaries cost, we have the review of minimum wage that was an impact. But also, as you remember, 20 months ago, we have also the impact of the outsourcing reform law. And then we are having some -- we will see some other additional impacts for this '23 that is, again, the review of the minimum weight but also the review on the holidays, that's going to have an impact related with the need of additional headcount for cover all that additional holidays that the employees were going to have to take on -- from this year and looking forward. No, it's the same this is all the labor law changes have been impacting the -- all our costs in all lines. Additionally, the impact of inflation, not only in Mexico but also in Jamaica. So we have stress in the cost of services in general. So it's important to consider that Additionally, I will mention that regarding Montego Bay we have the impact of the additional concession fee that it is additional cost. If we look the comps with 2021, we will see an additional cost or additional increase in the concession fees that it comes from Jamaica is very significant. So we had an increase of 54% in 2022. So I think as Al mentioned, the effects of labor law, but also the effects of concession fees Related to the dividend payment, Raul?

I mean, in a couple of days, we would have -- we release the number. But as you know, as a company, we're going to always make the best possible effort for [indiscernible] as big a dividend yield that is possible in terms of what is fiscal have an optimal use of the fiscal resources. So I will say that, that will continue in the same line, but the fact the number is going to be released in a couple of weeks.

And just a follow-up, if I may, on -- you mentioned that you had increased prices in January. What would you expect your maximum tariff compliance to be this year with that price increase?

It will be from -- I mean, for sure, it depends on inflation and also we are having some additional pressure from a stronger peso, as you know, as you remember, all international to is related to dollars. But in general terms, we are expecting to be around 97% to 98% of fulfillment on the tariff from this year. for sure, depends on inflation and the dollar change et cetera.

We'll take our next question from Alberto Valerio with UBS.

And congrats for the amazing year in 2022. Just a follow-up on the COGS, if you could detail a little bit more what you have in the order operate expense for the next few quarters that you see an increase in the year. Another point as well is on Montego Bay, we see a little bit cheaper.. So on the other operating expenses for the Mexican airport operations, if you could give a little bit of more color besides the deep amounts in convenience stores that we have a little bit increase for the fourth quarter, if you could provide a little bit more color and design what drove the decrease year-over-year. The second one is about Jamaica as well. I think you mentioned the piece that you increased in Jamaica, [indiscernible] and if there is something else that increased cost in general? And lastly, on the financial results, besides the interest rates and the other financial results...

Alberto sorry to interrupt, it sounds very, very bad, is barely understanding your questions. Can you please add your questions in the webcast, please? Write down your questions.

We'll take our next question from Anton Mortenkotter with GBM.

Congrats on your results. I understand that you guys did a deployment of around MXN 2 billion for commercial projects during 2022 and you expect to do something near that amount for 2023 also. Could you provide some detailed breakdown of that deployment? I mean how much has been expend for the mixed-use facilities, how much for the parking and all of that?

Well, in 2022, we deployed around MXN 1.5 billion regarding commercial projects. For 2023, we are expecting to deploy around MXN 2.5 billion. So you are correct. We are doing huge investment in mixed use building Guadalajara. We are expanding the airport, the parking lot in Guadalajara Airport. We are doing a huge expansion in Los Cabos airport in the all the commercial areas. You will see that the commercial revenue in 2024 with a better revenue for Cabos. We have been doing additional investments in commercial stores and VIP launches. In all our other medium-sized airports, we have been doing some investment in terms of parking lots in some commercial areas. But it's important also to mention is that in Montego Bay, we did a huge expansion of the -- all the commercial and retail area for this airport that is very relevant for 2022. And for 2023, that we are planning to continue with the conclusion of the mixed-use building in Guadalajara. We continue with the expansion of Guadalajara Airport. Just to have in mind that currently, we have 2,000 spaces in the parking lot in Guadalajara. At the end of '23, we will have around 45,000 spaces in this parking lot. And at the end of 2026, we will have around 10,000 spaces. So we are in the plan of expanding all the commercial areas. And you can see it in the commercial revenue that we are reporting. It's also important to mention that the payback of the commercial investment is around 5 to 7 years, and we are trying to get at least the same return that we expect from the Aeronautical revenues, at least -- so we ask additional return in all the commercial projects. So in general, all the investment that we are deploying is related with the commercial revenues is having an additional return than the aeronautical revenues.

Just to trying to break down the numbers a little bit. Would it be possible to get a rough amount of how much has been spent for the parking spaces, how much for the hotel and how much for the mixed-use facilities?

Yes. Well, in general numbers in very, very general numbers regarding the mixed building is around MXN 1 billion. In the case of the expansion of Montego Bay in 2022, it was around USD 40 million because it was a huge future expansion. So the other is the beginning of the expansion of the parking lots and the commercial stores and the VP launches. And for 2023, the main investment is to continue with -- and to finalize the mixed-use building, that will be around 100 million to conclude this building and also to continue with the expansion of the Parking lot to finalize the 4,500 spaces of the parking lot in Guadalajara. We are also doing and finalizing the investment of the investment and the expansion of the Los Cabos commercial spaces that will be around MXN 600 million.

Okay. And I understand that the mix building has roughly 30,000 square meters, right? The one where you already deploy MXN 1 billion and are expecting to deploy an additional MXN 800 million.

It will be around 50,000 square meters when you take in account the office building, the hotel building and special area in the middle of that. That will be that around 50,000 square meters told for the complete project.

We'll move next with Pablo Monsivais with Barclays.

I have a quick question in terms of the traffic that you are forecasting for, I don't know, 2023, '24 and '25 for the medium term. How do you see your CapEx and your increased capacity being ready to serve that amount of partners that most likely you didn't expect at the time you negotiated your MDP? Should we start forecasting a higher CapEx for those years? What are you -- what is basically the balancing between additional capacity and additional traffic.

I would say let me begin with which areas of the airport, we need to increase capacity for the coming years. Now first I will talk about why it's included on this master plan and what would be included on the coming matter plan. In this master plan, we have the second long way of Guadalajara that will need to be open at the end of this year '23. And we are beginning the construction of the new terminal building on Guadalajara. But that's going to be concluded on 2026 that is then going to be partially part of the new master plan. That is for the case of Guadalajara. So for the case of Guadalajara, talking about the new master plan, it will include to conclude the new terminal building of their terminal building of the airport. And also, we include some major maintenance of the first runway that it needs -- for the moment of the construction of the second runway, we have some -- we need to do some deep maintenance of the first runway as soon as we begin the new mask. Let me jump to Tijuana. In the current case of Tijuana, in this master plan, we will conclude the last part of the new terminal building that's going to be concluded. That is mainly the facilities for the [indiscernible] claiming on the international side. With that, we will conclude this master plan. For the coming years, it's clear that the increase of passengers on Tijuana and the potential that we see in that terminal with Magnus deploy an important increase on capacity in terms of terminal building. for sure. Right now, we are running the specific amount of additional square meters and additional gates that we will need for the coming years. But I will say that for sure, in the case of Tijuana, we will need to deploy an important increase in terms of capacities of our terminal buildings. Jumping to those Cabos. In Dos Cabos on this master plan, we are concluding an important expansion of the Terminal 2, that is the international terminal building for that airport. And with that, I would say that we will conclude the increase of capacity of these master plan. For sure, in the coming master plan, we will need to deploy a completed brand-new thermal building for the domestic passenger -- so we are working on that project. But in terms of capacity, we know that we need to add capacity for the domestic passengers and the case of caps. Lastly, for the case of Puerto Vallarta, we will -- on this masterplan will include the new terminal building facility in terminal 2 in turning out to in Puerto Vallarta that will give us a lot of additional capacity for that. For the next master plan, we will have some general or deep refurbishment of the Terminal 1 on Puerto Vallarta, but will not add additional capacity will be more general refurbishment of the terminal building. For the case of the rest of the airports, I would say that in this master plan that will conclude in 2024, we generally done didn't add capacity for the rest of the airports in Mexico. So the natural thing on the coming master plan is that the rest of the airport without capacity in terms of terminal business. Saying that, that we could expect in terms of CapEx for the next master plan would be in the same level of CapEx per passenger that we will have in the -- I mean, as in the last master plans. So we will continue to align the same ratio of investment or CapEx per passenger. And I will say that is the best way to understand the -- how much money we are seeing on the next multiple. But Also, we are finalizing the couple of months what's going to be our new master plan. We are running all the studies of capacity and forecasting. So I will say that today, we don't have completely clear what's going to be the number or the rough number that we're going to have on the negotiation with authority. But in general terms, talking about what we saw in terms of capacity, we -- I already mentioned, which are -- which is going to be our biggest increases or that will be our biggest increases on capacity on coming years. So I mean, in general, there is what we are seeing for the market plan.

[Operator Instructions] We will move next with Gabriel Himelfarb Mustri with Scotiabank.

Just a quick question. Basically, we're seeing a strong increase in international traffic on Los Cabos, Puerto Vallarta and also in Tijuana and Guadalajara. Can you give us a bit of color of how much could be driven by Canadian traffic that is incorporating into international traffic?

Yes, as you say, I mean, it's -- there is a big increase on the capacity of Canadian traffic because, as you remember, 1 year ago in 2022, in some way, we lose the winter season of Balata Cabos, Montego Bay airport mainly. So this year, we are seeing a full recovery of the capacity and offer of seats for the Canadian market. So for sure, that is helping us to have a much better increase on passengers in those airports. But what is also important to know is that in 2022, also different U.S. carriers add capacity in Cabo in Vallarta airport, -- and in some way, we thought that, that could be a change in some way that we will not completely clear that's going to be sustainable in the time because at that moment, if we remember 2022, we were talking that a lot of the capacity on the long haul from U.S., Ireland was in some way were canceled and in some way deferred to other Mexican leisure destinations. So one of the big questions that we have for this 2017 was all that additional asset will continue or not. And the great news is that the answer is -- for instance, for this winter season from January to March, we are seeing that the number of ships of the U.S. carriers also are increasing. So in some way, that the great news for the leisure Mexican destination is that the capacity is doing great. The yields are doing great and the load factors are doing great. So in general terms, we think that the laser destinations at Cabos and Vallarta are in a great moment for continue their growth for -- in this year.

Okay. And just an addition question. Do you think this capacity will now start to normalize by next year?

I mean it's difficult to have all the view of what's going to happen in next year. But I will say that what is interesting that is happening in Kagan in Vallarta is that today, there's a really big amount of additional room rooms, hotel rooms or her rooms under construction in those areas. So I would say that, for instance, in the case of Vallarta, data of 2024, the opening of the new complex of the Mayan of Grupo Vidanta. [indiscernible] Vallarta will bring a really big amount of additional hotel rooms to the region. And for sure, we are expecting that at least the market could react for that additional offer of rooms bringing additional hits to the market. In both airports, we are seeing that expansion of rooms in Cabos and in Vallarta. So we are still optimistic about the growth on the offer of seats on those markets for the coming years.

[Operator Instructions]

Thank you. We have already received the question from Alberto Valerio from U.S. and he's asking, can you provide additional details on what drove the increase of the other operating expenses line?

Alberto, this is a very important point because in this line, we include because of related with the operation of our convenience stores our VIP launches and FDO terminal. In this, it's important to mention that it is increased because these business lines are increasing. So it implies in rough numbers, EUR 100 million increase means that we have around EUR 250 million of commercial revenues, additional commercial learnings over these business lines. Additionally, we had a little peak of roar net accounts that we couldn't collect during 2022. We were expecting since 2022, the bankruptcy from Aramark. So we reserve the accounts from Miramar. So it is the integration of this business line.

Can you provide additional color on the operating expenses increase in MBDA. What were the main expenses increased beside the concession fee that you have already mentioned?

Well, the cost of operating was almost in line that we expected. Basically, it had an increase based on inflation around 8% U.S. inflation. But more significant increase was the additional construction fee. If you recall, according to our transaction model in MBJ has closed that mentioned that in the moment that the real revenues is above of a certain figure of revenue. We have to pay 45% of the excess of that trigger to the authority. So that's why in the previous year, 2020, '21, we had a credit. So once we recover the past year traffic in 2022, we decreased that credit, and we had to make a provision of this additional concession fee that will be paid during 2023. But it's basically the main increase.

Is there anything that impacted the financial expense of lines besides higher interest on debt?

Well, no, the main effect, obviously, is the level of debt. As you know, as part of our strategy is to leverage 100% of our CapEx, the commercial and committed CapEx. So that's the main reason. And obviously, the interest rates that we have seen in the last year. So that's the main effect.

We have now 2 questions from Bruno Amorim from Goldman Sachs. How do you expect for currently high 10-year bond yields peak cost of capital for MVP purposes? Should this drive higher tariffs or else held constant?

For the case of this, let me -- everybody -- it is important to remember that at the moment that we were negotiating the last master plan, it was in the market, all the noise about the cancellation of the New Mexico City Airport. So in that moment, the deals of the long-term debt of the Mexican government was really in the same level of yields that we are seeing today. So we really don't see any kind of additional pressure for an increase of the level of yield that in some way could affect this call rate for the next review. I will say, in that moment, we have a really specific moment of a lot of noise related to the cancellation of the or the New Mexico City Airport. And in some way, are the level of the different curves are mainly in the same, I would say, area. So I really don't see that -- a bigger increase in forward looking for this core rate.

Also, Bruno asked in the prior NTP cycles in general for GAAP and other operators, strong traffic less to higher CapEx levels, allowing for higher tariff in real terms. Do you see any reason why this time the 2024 MTP tariff could eventually follow.

I will say that it is important to remember that we are -- or the new maximum tariff cycle, the new negotiation, the maximum tariff will begin with a really bigger amount of work of June of passenger and cargo in the year base for the forecasting. So -- and a lot of some of our infrastructure or the bit of capacity already happened. I mean, we built the second runway on Guadalajara. We built some the new terminal of Bajada. So the natural way to see what would happen with the tariff on the covenant on the coming maximum in the next master plan will be something more aligned to some kind of decrease or neutral result on the tariff. But I mean the most important thing is to note that the base of the calculus is the number of passengers where you begin the run in the forecasting. So what we're going to see in the coming years for all the airport groups is that the amount of passengers is much bigger than the one where we have when we run in 2019, the forecasting for the maximum tariff. So the correct view going to be something a little negative or around neutral for the result of tariff in real terms for the Colony master plan.

Can you give us color regarding your guidance for EBITDA margin for 2023 and the midterm level you expect?

Yes, Pablo, it's -- that we released in our guidance is 70% of EBITDA margin, more plus 1%. So we believe that historically, the EBITDA margin of GAV is around 69%, 60%, 70%, like this year, in 2022, we have above of 71%. It was a great year. But what do we expect is to have around 70%. So historically, it has been below that. But in some way, we will have in the average of 70%.

Can you give us some color on the impact that near shoring is having in your operations? And what do you expect in the midterm?

Yes. I mean we think that we are just in the beginning of what the real potential that will bring for additional passengers to our airports about the near shoring. We are really optimistic that we could see some results, important results on the case of the area of Maquilas automotive areas that could be Guanajuato as Caliente and Jalisco, or Guadalajara. We also are beginning to see a really positive impact or beginning of new sharing impact on the case of Tijuana and Mexicali airports. -- around the cities, we are seeing a lot of increasing on the warehouse factories, [indiscernible]. At the moment, I could say that in Baja, California, we are seeing a really dynamic economy that in some way is moving related with the new showing. So in general terms, I would say that we are beginning to see some of the impact. It's not fully clear yet, but we are optimistic that on the coming years, we will begin to see more of that impact. For instance, Isan just has announced a really big amount of additional investments for the Caliente factory, what is a great news for the Caliente airport that is really related to business traffic, and it mainly comes from the automotive industry. So I will say that we are at the beginning of what could be a great but gradual impact on the passengers related with the new sharing.

And then we have the last one from the webcast from rubber crime from inside LLP. Could you please split out the CapEx in 2022 because it seems very high. Does the total amount change with the MDT? Or how do you will receive a return on the extra CapEx. And what is end in the CapEx for 2022?

Well, the CapEx in 2022, as we mentioned, we deployed around MXN 8.4 billion. It was MXN 6.9 billion related with the mandatory CapEx in Mexico in Jamaica and MXN 1.5 billion in commercial investments. Related with your question that is very high, we have to consider that the commitment with the authorities is that is in 2017 numbers, the inflation related from 2017 up to 2022, it was around 45%. We have had a huge pressure in terms of inflation in our investments, the mandatory investment, not only in Mexico, but also in Jamaica. On the other hand, all the commercial investment that we expect is to have a return, a higher return than the investments related to aeronautical revenues oratory investment. So if we expect a return on extra CapEx, yes, we expect the return on extra and is a better return than established in the maximum tariffs. Connecting to your question, what is the CapEx for 2023 as we mentioned before, it's around MXN 10 billion is divided MXN 7.5 billion related with the mandatory CapEx in Mexico and Jamaica and MXN 2.5 billion will be for commercial purposes. We are explained about the mid-dose, the expansion of the parking lot, the expansion of the IP launches and the convenience stores. For part, we have a huge investment and expansion in commercial terms.

We show no further questions over the phone. I would like to turn the call over to Raul Revuelta for any closing remarks.

Thank you. Thank you very much for your attention. Before I conclude, I would just want to mention that the GAP date 2023 will be held on March 16 in the New York Stock Exchange. We hope that you can join us for morning of management presentations and more information on future projects and outlooks. Please contact our Investor Relations team for more information. Have a great day.

And this does conclude today's program. Thank you for your participation. You may disconnect at any time.