~~TABLE OF CONTENTS~~

~~(continued)~~

		~~Page~~

~~ITEM 12B.~~	~~WARRANTS AND RIGHTS~~	~~192~~

~~ITEM 12C.~~	~~OTHER SECURITIES~~	~~192~~

~~ITEM 12D.~~	~~AMERICAN DEPOSITARY SHARES~~	~~192~~

~~ITEM 13.~~	~~DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES~~	~~195~~

~~ITEM 14.~~	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	~~195~~	167

ITEM 15.	CONTROLS AND PROCEDURES	~~195~~	167

ITEM 16.	[RESERVED]	~~197~~	169

ITEM ~~16A.~~16A.	AUDIT COMMITTEE’S FINANCIAL EXPERT	~~197~~	169

ITEM 16B.	CODE OF ETHICS	~~197~~	170

ITEM 16C.	PRINCIPAL ACCOUNTANT FEES AND SERVICES AUDIT AND NON-AUDIT FEES	~~198~~	170

ITEM 16D.	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES	~~198~~	170

ITEM 16E.	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS	~~198~~	170

ITEM 16F.	CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT	~~199~~	171

ITEM 16G.	CORPORATE GOVERNANCE	~~200~~	171

ITEM 16H.	MINE SAFETY DISCLOSURES	~~204~~	176

ITEM 17.	FINANCIAL STATEMENTS	~~205~~	177

ITEM 18.	FINANCIAL STATEMENTS	~~205~~	177

ITEM 19.	EXHIBITS	~~205~~	177

ii

PART I

~~PART I~~

Item 1.Identity of Directors, Senior Management and Advisers

Not applicable.

Item 2.Offer Statistics and Expected Timetable

Not applicable.

Item 3.Key Information

~~SELECTED FINANCIAL DATA~~Selected Financial Data

Our consolidated financial statements included in this annual report are prepared in accordance with International Financial Reporting Standards, or IFRS, as issued by the International Accounting Standards Board, or the IASB. We publish our consolidated financial statements in thousands of Mexican pesos.

References in this annual report on Form ~~20-F~~20‑F to “dollars,” “U.S. dollars” or “U.S.$” are to the lawful currency of the United States. References in this annual report on Form ~~20-F~~20‑F to “pesos” or “Ps.” are to the lawful currency of Mexico. This Form ~~20-F~~20‑F contains translations of certain peso amounts into U.S. dollars at specified rates solely for the convenience of the reader. These translations should not be construed as representations that the peso amounts actually represent such U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, U.S. dollar amounts have been translated from Mexican pesos at an exchange rate of ~~Ps. 14.7348~~ Ps.19.7354to U.S.$1.00, the FIX exchange rate as reported by the Mexican Central Bank (Banco de México) on December 31, ~~2014.~~2017.

This annual report on Form ~~20-F~~20‑F contains references to “workload units,” which are units measuring an airport’s passenger traffic volume and cargo volume. A workload unit currently is equivalent to one terminal passenger or 100 kilograms (220 pounds) of cargo.

The discussion in this annual report of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues in relation to our total revenues is not in accordance with IFRS because it excludes our construction revenues from such amounts. Therefore, in reviewing this annual report, you should be aware that in several sections of this annual report we take into account only revenues that resulted in actual cash inflows for the year (which we categorize as aeronautical and ~~non-aeronautical~~non‑aeronautical revenues) for ratios or comparative calculations. Both of these categories of revenues are dependent, either directly or indirectly, on passenger traffic, while revenues from construction services under IFRS Interpretations Committee (“IFRIC”) 12, “Service Concession Arrangements,” are not dependent upon passenger traffic, but from the level of capital expenditures carried out at each airport. Information reported using only revenues that generated cash inflows may be more useful for readers of this annual report because those revenues are driven by the key elements of our business: passenger traffic and our maximum tariffs. The use of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues is more common in our industry, as they represent the revenues generated from our core operations, which are services provided to passengers, airlines and other third parties based on passenger traffic at our airports. Additionally, management regularly reviews our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues as they provide representative information regarding our passenger traffic and cash flows, which allows us to compare such revenues over comparative periods as well as make projections about our expected future cash flows. Finally, management reviews ~~non-aeronautical~~non‑aeronautical revenues per terminal passenger excluding hotel services because hotel services are not necessarily driven by passenger traffic and therefore may not provide representative information with respect to passenger traffic. This metric is not considered to be an IFRS metric, given its exclusion of certain revenues. We indicate each instance in which we use only aeronautical and ~~non-aeronautical~~

non‑aeronautical 1

1

The following tables present a reconciliation of our aeronautical and non-aeronautical revenues to our total revenues per our consolidated statement of income and other comprehensive income:


																For the Year Ended December 31, 2017
																						Total
																						Aeronautical and
																				Total		Non-Aeronautical
	For the Year Ended December 31, 2014																	Non-		Aeronautical and		Revenues as a
	Aeronautical Revenues			Non- Aeronautical Revenues			Total Aeronautical and Non- Aeronautical Revenues			Total Aeronautical and Non- Aeronautical Revenues as a Percentage of Total Revenues	Construction Revenues		Total Revenues			Aeronautical		Aeronautical		Non-Aeronautical		Percentage of		Construction		Total
																Revenues		Revenues		Revenues		Total Revenues		Revenues		Revenues
	(in thousands of pesos)															(in thousands of pesos)
Metropolitan
Monterrey	Ps.	1,167,807		Ps.	360,228		Ps.	1,528,035		97.7%	Ps.	36,618	Ps.	1,564,653		Ps.	2,046,097	Ps.	547,586	Ps.	2,593,683	87.6	%	Ps.	367,214	Ps.	2,960,897

Tourist

Acapulco	117,573			22,779			140,352			74.4%		48,313		188,665			158,448		34,089		192,537	34.1	%		372,253		564,790

Mazatlán	148,781			37,002			185,783			73.6%		66,475		252,258			249,479		47,819		297,298	90.8	%		30,205		327,503

Zihuatanejo	102,780			19,990			122,770			89.4%		14,504		137,274			167,550		27,334		194,884	87.4	%		28,039		222,923

Regional

Chihuahua	162,469			34,792			197,261			92.6%		15,719		212,980			308,746		52,742		361,488	74.7	%		122,412		483,900

Culiacán	223,423			35,022			258,445			88.3%		34,097		292,542			409,399		53,296		462,695	91.4	%		43,362		506,057

Durango	48,937			7,784			56,721			80.7%		13,598		70,319			100,884		11,061		111,945	84.9	%		19,974		131,919

San Luis Potosí	84,498			17,508			102,006			87.4%		14,772		116,778			149,823		24,603		174,426	61.6	%		108,756		283,182

Tampico	124,312			18,183			142,495			91.7%		12,981		155,476			171,550		25,859		197,409	80.9	%		46,740		244,149

Torreón	98,985			15,671			114,656			90.2%		12,444		127,100			156,158		22,478		178,636	89.9	%		20,018		198,654

Zacatecas	56,872			7,535			64,407			82.1%		14,036		78,443			95,153		12,172		107,325	84.8	%		19,175		126,500

Border

Ciudad Juárez	124,252			24,784			149,036			91.5%		13,782		162,818			244,891		40,676		285,567	89.9	%		31,917		317,484

Reynosa	85,018			10,988			96,006			90.6%		9,988		105,994			104,311		15,094		119,405	48.4	%		127,353		246,758

Hotel	—			195,742			195,742			100%		—		195,742

Terminal 2 NH Collection Hotel																	—		250,777		250,777	100.0	%		—		250,777
Hilton Garden Inn Hotel																	—		90,875		90,875	100.0	%		—		90,875
OMA Vynmsa Aero Industrial Park																	—		12,914		12,914	100.0	%		—		12,914
Other(1)	—			2,441,636			2,441,636			100%		—		2,441,636			—		4,034,440		4,034,440	100.0	%		—		4,034,440

Total	2,545,707			3,249,644			5,795,351			95.0%		307,327		6,102,678			4,362,489		5,303,815		9,666,304	87.8	%		1,337,418		11,003,722

Eliminations(2)	(13,041		)	(2,359,950		)	(2,372,991		)	N/A		—		(2,372,991	)		(15,458)		(3,847,477)		(3,862,935)	N/A	%		(10,960)		(3,873,895)

Total Revenues	Ps.	2,532,666		Ps.	889,694		Ps.	3,422,360		91.8%	Ps.	307,327	Ps.	3,729,687		Ps.	4,347,031	Ps.	1,456,338	Ps.	5,803,369	81.4	%	Ps.	1,326,458	Ps.	7,129,827

(1)

Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

~~(1)~~Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Log��stica, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

(2)

Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.

~~(2)Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.~~

2


	For the Year Ended December 31, 2016
							Total
							Aeronautical and
					Total		Non-Aeronautical
			Non-		Aeronautical and		Revenues as a
	Aeronautical		Aeronautical		Non-Aeronautical		Percentage of		Construction		Total
	Revenues		Revenues		Revenues		Total Revenues		Revenues		Revenues
	(in thousands of pesos)
Metropolitan
Monterrey	Ps.	1,799,823	Ps.	560,016	Ps.	2,359,839	96.0	%	Ps.	97,631	Ps.	2,457,470
Tourist
Acapulco		149,214		30,446		179,660	70.1	%		76,772		256,432
Mazatlán		221,522		46,879		268,401	93.2	%		19,527		287,928
Zihuatanejo		141,091		26,280		167,371	86.7	%		25,699		193,070
Regional
Chihuahua		272,921		48,374		321,295	95.2	%		16,061		337,356
Culiacán		351,096		48,280		399,376	97.7	%		9,608		408,984
Durango		98,550		11,026		109,576	96.2	%		4,381		113,957
San Luis Potosí		130,337		23,666		154,003	86.3	%		24,456		178,459
Tampico		162,389		22,735		185,124	85.2	%		32,053		217,177
Torreón		151,251		20,087		171,338	96.8	%		5,722		177,060
Zacatecas		87,616		10,120		97,736	92.7	%		7,677		105,413
Border
Ciudad Juárez		208,042		34,351		242,393	96.1	%		9,905		252,298
Reynosa		113,506		14,150		127,656	84.3	%		23,847		151,503
Terminal 2 NH Collection Hotel		—		227,884		227,884	100.0	%		—		227,884
Hilton Garden Inn Hotel		—		83,625		83,625	100.0	%		—		83,625
OMA Vynmsa Aero Industrial Park		—		4,952		4,952	100.0	%		—		4,952
Other(1)		—		4,847,425		4,847,425	100.0	%		—		4,847,425
Total		3,887,358		6,060,296		9,947,654	96.6	%		353,339		10,300,993
Eliminations(2)		(14,623)		(4,727,534)		(4,742,157)	N/A			(8,567)		(4,750,724)
Total Revenues	Ps.	3,872,735	Ps.	1,332,762	Ps.	5,205,497	93.8	%	Ps.	344,772	Ps.	5,550,269

(1)

Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

For the Year Ended December 31, 2013

Aeronautical
Revenues

Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues
as a
Percentage
of Total
Revenues

Construction
Revenues

Total
Revenues

(in thousands of pesos)

Metropolitan

Monterrey

Ps.
1,046,621

Ps.
320,774

Ps.
1,367,395

94.8%

Ps.
74,722

Ps.
1,442,117

Tourist

Acapulco

108,420

20,266

128,686

74.6%

43,861

172,547

Mazatlán

136,063

34,719

170,782

92.3%

14,173

184,955

Zihuatanejo

91,203

17,843

109,046

81.7%

24,348

133,394

Regional

Chihuahua

148,028

30,461

178,489

95.1%

9,127

187,616

Culiacán

211,588

32,504

244,092

93.0%

18,294

262,386

Durango

44,341

7,144

51,485

69.0%

23,149

74,634

San Luis Potosí

65,573

14,541

80,114

52.0%

73,874

153,988

Tampico

108,330

15,504

123,834

95.3%

6,116

129,950

Torreón

87,321

14,114

101,435

89.5%

11,887

113,322

Zacatecas

51,282

7,139

58,421

69.0%

26,264

84,685

Border

Ciudad Juárez

112,707

22,460

135,167

93.7%

9,078

144,245

Reynosa

69,919

9,425

79,344

81.7%

17,795

97,139

Hotel

—

176,510

176,510

100.0%

—

176,510

Other(1)

—

2,113,785

2,113,785

100.0%

—

2,113,785

Total

2,281,396

2,837,189

5,118,585

93.6%

352,688

5,471,273

Eliminations(2)

(12,527
)

(2,040,688
)

(2,053,215
)

N/A

—

(2,053,215
)

Total Revenues

Ps.
2,268,869

Ps.
796,501

Ps.
3,065,370

89.7%

Ps.
352,688

Ps.
3,418,058

(2)

Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.

~~(1)~~Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

3

~~(2)Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.~~

3


	For the Year Ended December 31, 2015
							Total
							Aeronautical and
					Total		Non-Aeronautical
			Non-		Aeronautical and		Revenues as a
	Aeronautical		Aeronautical		Non-Aeronautical		Percentage of		Construction		Total
	Revenues		Revenues		Revenues		Total Revenues		Revenues		Revenues
	(in thousands of pesos)
Metropolitan
Monterrey	Ps.	1,443,311	Ps.	484,111	Ps.	1,927,422	96.4	%	Ps.	70,999	Ps.	1,998,421
Tourist
Acapulco		138,309		27,864		166,173	67.0	%		81,869		248,042
Mazatlán		168,703		40,820		209,523	83.5	%		41,487		251,010
Zihuatanejo		118,736		23,751		142,487	71.1	%		57,943		200,430
Regional
Chihuahua		196,033		40,204		236,237	98.4	%		3,769		240,006
Culiacán		255,921		39,981		295,902	89.7	%		34,058		329,960
Durango		63,186		9,080		72,266	96.0	%		2,992		75,258
San Luis Potosí		99,341		20,482		119,823	96.3	%		4,668		124,491
Tampico		144,178		22,810		166,988	94.6	%		9,589		176,577
Torreón		110,480		18,191		128,671	89.7	%		14,796		143,467
Zacatecas		66,957		9,304		76,261	84.9	%		10,294		86,555
Border
Ciudad Juárez		146,201		29,225		175,426	94.9	%		9,512		184,938
Reynosa		95,742		12,557		108,299	94.7	%		6,012		114,311
Terminal 2 NH Collection Hotel		—		212,488		212,488	100.0	%		—		212,488
Hilton Garden Inn Hotel		—		16,882		16,882	100.0	%		—		16,882
Other(1)		—		3,639,434		3,639,434	100.0	%		—		3,639,434
Total		3,047,098		4,647,184		7,694,282	95.7	%		347,988		8,042,270
Eliminations(2)		(13,968)		(3,535,643)		(3,549,611)	N/A			—		(3,549,611)
Total Revenues	Ps.	3,033,130	Ps.	1,111,541	Ps.	4,144,671	92.3	%	Ps.	347,988	Ps.	4,492,659

(1)

Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

For the Year Ended December 31, 2012

Aeronautical
Revenues

Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues
as a
Percentage
of Total
Revenues

Construction
Revenues

Total
Revenues

(in thousands of pesos)

Metropolitan

Monterrey

Ps.
989,976

Ps.
292,169

Ps.
1,282,145

94.7%

Ps.
72,331

Ps.
1,354,476

Tourist

Acapulco

99,498

18,725

118,223

85.7%

19,665

137,888

Mazatlán

122,061

34,900

156,961

92.9%

11,940

168,901

Zihuatanejo

89,602

17,401

107,003

87.2%

15,708

122,711

Regional

Chihuahua

139,127

27,259

166,386

86.2%

26,654

193,040

Culiacán

194,285

26,605

220,890

77.0%

66,093

286,983

Durango

45,051

6,723

51,774

98.1%

1,015

52,789

San Luis Potosí

63,281

13,836

77,117

89.2%

9,355

86,472

Tampico

105,275

14,938

120,213

93.7%

8,028

128,241

Torreón

77,305

13,259

90,564

89.8%

10,231

100,795

Zacatecas

51,177

6,713

57,890

73.1%

21,343

79,233

Border

Ciudad Juárez

110,444

20,563

131,007

82.5%

27,785

158,792

Reynosa

53,719

8,143

61,862

66.2%

31,570

93,432

Hotel

—

158,477

158,477

100.0%

—

158,477

Other(1)

—

2,123,202

2,123,202

100.0%

—

2,123,202

Total

2,140,801

2,782,913

4,923,714

93.9%

321,718

5,245,432

Eliminations(2)

(10,138
)

(2,093,956
)

(2,104,094
)

N/A

—

(2,104,094
)

Total Revenues

Ps.
2,130,663

Ps.
688,957

Ps.
2,819,620

89.8%

Ps.
321,718

Ps.
3,141,338

(2)

Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.

~~(1)~~Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

4

~~(2)Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.~~

4


	For the Year Ended December 31, 2014
							Total
							Aeronautical and
					Total		Non-Aeronautical
			Non-		Aeronautical and		Revenues as a
	Aeronautical		Aeronautical		Non-Aeronautical		Percentage of		Construction		Total
	Revenues		Revenues		Revenues		Total Revenues		Revenues		Revenues
	(in thousands of pesos)
Metropolitan
Monterrey	Ps.	1,167,807	Ps.	360,228	Ps.	1,528,035	97.7	%	Ps.	36,618	Ps.	1,564,653
Tourist
Acapulco		117,573		22,779		140,352	74.4	%		48,313		188,665
Mazatlán		148,781		37,002		185,783	73.6	%		66,475		252,258
Zihuatanejo		102,780		19,990		122,770	89.4	%		14,504		137,274
Regional
Chihuahua		162,469		34,792		197,261	92.6	%		15,719		212,980
Culiacán		223,423		35,022		258,445	88.3	%		34,097		292,542
Durango		48,937		7,784		56,721	80.7	%		13,598		70,319
San Luis Potosí		84,498		17,508		102,006	87.4	%		14,772		116,778
Tampico		124,312		18,183		142,495	91.7	%		12,981		155,476
Torreón		98,985		15,671		114,656	90.2	%		12,444		127,100
Zacatecas		56,872		7,535		64,407	82.1	%		14,036		78,443
Border
Ciudad Juárez		124,252		24,784		149,036	91.5	%		13,782		162,818
Reynosa		85,018		10,988		96,006	90.6	%		9,988		105,994
Terminal 2 NH Collection Hotel		—		195,742		195,742	100.0	%		—		195,742
Other(1)		—		2,441,636		2,441,636	100.0	%		—		2,441,636
Total		2,545,707		3,249,644		5,795,351	95.0	%		307,327		6,102,678
Eliminations(2)		(13,041)		(2,359,950)		(2,372,991)	N/A			—		(2,372,991)
Total Revenues	Ps.	2,532,666	Ps.	889,694	Ps.	3,422,360	91.8	%	Ps.	307,327	Ps.	3,729,687

(1)

Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

For the Year Ended December 31, 2011

Aeronautical
Revenues

Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues
as a
Percentage
of Total
Revenues

Construction
Revenues

Total
Revenues

(in thousands of pesos)

Metropolitan

Monterrey

Ps.
843,773

Ps.
250,719

Ps.
1,094,492

85.6%

Ps.
184,574

Ps.
1,279,066

Tourist

Acapulco

103,695

21,986

125,681

96.3%

4,853

130,534

Mazatlán

122,733

36,440

159,173

93.0%

12,002

171,175

Zihuatanejo

77,611

17,537

95,148

55.9%

75,096

170,244

Regional

Chihuahua

122,508

24,910

147,418

88.5%

19,101

166,519

Culiacán

168,427

23,614

192,041

94.0%

12,156

204,197

Durango

38,390

6,046

44,436

96.3%

1,723

46,159

San Luis Potosí

51,845

12,018

63,863

98.2%

1,179

65,042

Tampico

92,958

12,587

105,545

95.0%

5,510

111,055

Torreón

65,984

11,471

77,455

100.0%

—

77,455

Zacatecas

44,698

6,528

51,226

95.7%

2,324

53,550

Border

Ciudad Juárez

101,423

18,345

119,768

92.5%

9,771

129,539

Reynosa

36,132

6,601

42,733

94.3%

2,571

45,304

Hotel

—

142,098

142,098

100.0%

—

142,098

Other(1)

—

1,970,958

1,970,958

100.0%

3

1,970,961

Total

1,870,177

2,561,858

4,432,035

93.1%

330,863

4,762,898

Eliminations(2)

—

(1,973,187)

(1,973,187)

N/A

—

(1,973,187)

Total Revenues

Ps.
1,870,177

Ps.
588,671

Ps.
2,458,848

88.1%

Ps.
330,863

Ps.
2,787,711

(2)

Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.

~~(1)~~Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

5

~~(2)Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.~~

5


	For the Year Ended December 31, 2013
							Total
							Aeronautical and
					Total		Non-Aeronautical
			Non-		Aeronautical and		Revenues as a
	Aeronautical		Aeronautical		Non-Aeronautical		Percentage of		Construction		Total
	Revenues		Revenues		Revenues		Total Revenues		Revenues		Revenues
	(in thousands of pesos)
Metropolitan
Monterrey	Ps.	1,046,621	Ps.	320,774	Ps.	1,367,395	94.8	%	Ps.	74,722	Ps.	1,442,117
Tourist
Acapulco		108,420		20,266		128,686	74.6	%		43,861		172,547
Mazatlán		136,063		34,719		170,782	92.3	%		14,173		184,955
Zihuatanejo		91,203		17,843		109,046	81.7	%		24,348		133,394
Regional
Chihuahua		148,028		30,461		178,489	95.1	%		9,127		187,616
Culiacán		211,588		32,504		244,092	93.0	%		18,294		262,386
Durango		44,341		7,144		51,485	69.0	%		23,149		74,634
San Luis Potosí		65,573		14,541		80,114	52.0	%		73,874		153,988
Tampico		108,330		15,504		123,834	95.3	%		6,116		129,950
Torreón		87,321		14,114		101,435	89.5	%		11,887		113,322
Zacatecas		51,282		7,139		58,421	69.0	%		26,264		84,685
Border
Ciudad Juárez		112,707		22,460		135,167	93.7	%		9,078		144,245
Reynosa		69,919		9,425		79,344	81.7	%		17,795		97,139
Terminal 2 NH Collection Hotel		—		176,510		176,510	100.0	%		—		176,510
Other(1)		—		2,113,785		2,113,785	100.0	%		—		2,113,785
Total		2,281,396		2,837,189		5,118,585	93.6	%		352,688		5,471,273
Eliminations(2)		(12,527)		(2,040,688)		(2,053,215)	N/A			—		(2,053,215)
Total Revenues	Ps.	2,268,869	Ps.	796,501	Ps.	3,065,370	89.7	%	Ps.	352,688	Ps.	3,418,058

For the Year Ended December 31, 2010

Aeronautical
Revenues

Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues

Total
Aeronautical
and Non-
Aeronautical
Revenues
as a
Percentage
of Total
Revenues

Construction
Revenues

Total
Revenues

(in thousands of pesos)

Metropolitan

Monterrey

Ps.
731,415

Ps.
209,636

Ps.
941,051

83.1%

Ps.
192,050

Ps.
1,133,101

Tourist

Acapulco

115,417

22,130

137,547

75.6%

44,382

181,929

Mazatlán

117,603

34,947

152,550

77.1%

45,350

197,900

Zihuatanejo

78,644

16,528

95,172

72.9%

35,312

130,484

Regional

Chihuahua

115,961

23,250

139,211

81.4%

31,874

171,085

Culiacán

147,441

20,324

167,765

86.4%

26,391

194,156

Durango

30,628

10,785

41,413

100.0%

—

41,413

San Luis Potosí

43,747

11,512

55,259

100.0%

—

55,259

Tampico

68,193

10,863

79,056

100.0%

—

79,056

Torreón

52,473

10,805

63,278

100.0%

—

63,278

Zacatecas

41,917

5,773

47,690

72.9%

17,685

65,375

Border

Ciudad Juárez

80,682

17,369

98,051

81.0%

22,936

120,987

Reynosa

28,505

5,917

34,422

71.0%

14,049

48,471

Hotel

—

99,823

99,823

100.0%

—

99,823

Other(1)

—

1,567,270

1,567,270

100.0%

—

1,567,270

Total

1,652,626

2,066,932

3,719,558

89.6%

430,029

4,149,587

Eliminations(2)

—

(1,575,135)

(1,575,135)

N/A

—

(1,575,135
)
Total Revenues

Ps.
1,652,626

Ps.
491,797

Ps.
2,144,423

83.3%

Ps.
430,029

Ps.
2,574,452

(1)

Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V. and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

(2)

Eliminations consist of operations and balances between our subsidiaries, as well as reclassifications.

~~(1)~~Represents our subsidiaries Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Operadora de Aeropuertos del Centro Norte, S.A. de C.V., Servicios Aero Especializados del Centro Norte, S.A. de C.V., OMA Logística, S.A. de C.V., Holding Consorcio Grupo Hotelero T2, S.A. de C.V., and Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (on an individual basis).

6

~~(2)Eliminations consist~~Table of ~~operations and balances between our subsidiaries, as well as reclassifications.~~Contents

The following tables present our selected consolidated financial information for or as of each of the periods or dates indicated, and have been derived in part from our audited consolidated financial statements. This information should be read in conjunction with, and is qualified in its entirety by reference to, our consolidated financial statements, including the notes to our consolidated financial statements.


	For the Year Ended December 31,
	2013	2014	2015	2016	2017
	(in thousands of pesos, except per share and operating data)				(in thousands of dollars)(1)
Statements of Income and Other Comprehensive Income data:
Revenues:
Aeronautical services(2)	2,268,869	2,532,666	3,033,130	3,872,735	4,347,031	220,266
Non-aeronautical services(3)	796,501	889,694	1,111,541	1,332,762	1,456,338	73,793
Construction services	352,688	307,327	347,988	344,772	1,326,458	67,212
Total revenues	3,418,058	3,729,687	4,492,659	5,550,269	7,129,827	361,271
Operating costs and expenses:
Costs of services, excluding depreciation and amortization	725,329	772,946	836,133	900,141	981,065	49,711
Major maintenance provision	263,167	179,932	174,293	262,871	291,038	14,747
Cost of construction	352,688	307,327	347,988	344,772	1,326,458	67,212
Administrative expenses	501,233	539,753	558,222	642,345	587,917	29,790
Right to use airport facilities(4)	148,159	171,670	209,771	244,215	271,331	13,748
Technical assistance fees(5)	66,643	82,461	97,818	117,987	135,074	6,844
Depreciation and amortization(6)	201,226	223,982	238,809	276,634	299,205	15,161
Other income, net	(49,782)	(17,373)	(6,930)	(22,250)	(1,380)	(70)
Total operating costs and expenses	2,208,663	2,260,698	2,456,104	2,766,715	3,890,708	197,143
Operating income	1,209,395	1,468,989	2,036,555	2,783,554	3,239,119	164,128
Interest expense	(209,359)	(264,368)	(334,764)	(330,694)	(352,822)	(17,878)
Interest income	72,650	77,147	80,740	199,600	127,290	6,450
Exchange (loss) gain, net	(6,198)	(22,463)	(33,784)	(29,177)	(63,072)	(3,196)
Income before income taxes	1,066,488	1,259,305	1,748,747	2,623,283	2,950,515	149,504
Income tax (benefit) expense	(134,876)	232,345	512,110	746,782	813,073	41,199
Consolidated net income for the year	1,201,364	1,026,960	1,236,637	1,876,501	2,137,442	108,305
Items that will not be subsequently reclassified to income:
Actuarial losses on labor obligations	(2,851)	437	(1,286)	3,533	(4,199)	(213)
Income tax relating to items that will not be subsequently reclassified to profit or loss	843	(131)	386	(1,060)	1,260	64
Total comprehensive income for the year	1,199,356	1,027,266	1,235,737	1,878,974	2,134,503	108,156
Consolidated net income attributable to:
Controlling interest	1,199,636	1,024,694	1,233,772	1,870,187	2,127,576	107,805
Non-controlling interest	1,728	2,266	2,865	6,314	9,866	500
Consolidated comprehensive income attributable to:
Controlling interest	1,197,628	1,025,000	1,232,872	1,872,660	2,124,637	107,656
Non-controlling interest	1,728	2,266	2,865	6,314	9,866	500
Basic and diluted earnings per share of controlling interest(7)	3.0062	2.5844	3.1328	4.7614	5.4046	0.2739
Basic and diluted earnings per ADS(7)	24.0496	20.6752	25.0623	38.0912	43.2368	2.1908
Dividend or reimbursement of capital per share(8)	3.0000	3.0000	3.0000	3.5000	4.0000	0.2027
Other operating data:
Total terminal passengers (thousands of passengers)(9)	13,292	14,695	16,922	18,764	19,662	N/A
Total air traffic movements (thousands of movements)	321	337	345	358	332	N/A
Aeronautical and non-aeronautical revenues per terminal passenger(10)	231	233	245	277	295	15

6

7


	As of December 31,
	2013	2014	2015	2016	2017
	(in thousands of pesos)				(in thousands of dollars)(1)
Statement of Financial Position data:
Cash and cash equivalents	1,534,006	2,808,149	2,605,196	3,005,792	2,333,007	118,214
Other investments held to maturity	—	—	60,445	—	49,338	2,500
Total current assets	2,276,938	3,404,343	3,216,774	4,098,459	3,498,622	177,277
Property, leasehold improvements and equipment, net	2,165,766	2,284,314	2,370,975	2,444,205	2,601,397	131,814
Investment in airport concessions	6,092,046	6,180,277	6,348,605	6,513,514	7,648,417	387,548
Total assets	11,011,453	12,417,880	12,510,336	13,545,323	14,200,800	719,560
Current liabilities	956,989	830,680	968,782	1,108,331	1,104,273	55,954
Total liabilities	4,614,059	6,301,277	6,559,809	6,858,343	6,971,485	353,248
Total shareholders’ equity	6,397,394	6,116,603	5,950,527	6,686,980	7,229,315	366,312

For the Year Ended December 31,

2010

2011

2012

2013

2014

(in thousands of pesos, except per share and operating data)

(in
thousands of
dollars)(1)

Statements of Income and Other Comprehensive Income data:

Revenues:

Aeronautical services(2)

1,652,626

1,870,177

2,130,663

2,268,869

2,532,666

171,883

Non-aeronautical services(3)

491,797

588,671

688,957

796,501

889,694

60,381

Construction services

430,029

330,863

321,718

352,688

307,327

20,857

Total revenues

2,574,452

2,789,711

3,141,338

3,418,058

3,729,687

253,121

Operating costs and expenses:

Costs of services, excluding depreciation and amortization

688,381

603,900

656,217

725,329

772,946

52,457

Major maintenance provision

64,274

165,683

164,208

263,167

179,932

12,211

Cost of construction

430,029

330,863

321,718

352,688

307,327

20,857

Administrative expenses

380,474

434,531

457,749

501,233

536,034

36,379

Right to use airport facilities(4)

103,067

115,979

137,028

148,159

171,670

11,651

Technical assistance fees(5)

47,567

55,150

67,365

66,643

82,461

5,596

Depreciation and amortization(6)

149,232

165,088

186,803

201,226

223,982

15,201

Other income, net

(9,090)

(751)

(9,924)

(49,782)

(13,654)

(927)

Total operating costs and expenses

1,853,934

1,870,443

1,981,164

2,208,663

2,260,698

153,426

Operating income

720,518

919,268

1,160,174

1,209,395

1,468,989

99,695

Interest expense

(87,088)

(98,431)

(103,846)

(209,359)

(264,368)

(17,942)

Interest income

15,791

16,079

27,764

72,650

77,147

5,236

Exchange (loss) gain, net

1,562

(38,766)

23,168

(6,198)

(22,463)

(1,524)

Income before income taxes

650,783

798,150

1,107,260

1,066,488

1,259,305

85,465

Income tax (benefit) expense

(8,796)

182,070

288,172

(134,876)

232,345

15,768

Consolidated net income for the year

659,579

616,080

819,088

1,201,364

1,026,960

69,696

Items that will not be subsequently reclassified to income:

Actuarial losses on labor obligations

0

0

(11,313)

(2,851)

437

30

Income tax relating to items that will not be subsequently reclassified to profit or loss

0

0

3,390

843

(131)

(9)

Total comprehensive income for the year

659,579

616,080

811,165

1,199,356

1,027,266

69,717

Consolidated net income attributable to:

Controlling interest

660,897

615,823

818,121

1,199,636

1,024,694

69,542

Non-controlling interest

(1,318)

257

967

1,728

2,266

154

Consolidated comprehensive income attributable to:

Controlling interest

660,897

615,823

810,198

1,197,628

1,025,000

69,563

Non-controlling interest

(1,318)

257

967

1,728

2,266

154

Basic and diluted earnings per share(7)

1.6565

1.5433

2.0501

3.0062

2.5844

0.1754

Basic and diluted earnings per ADS(7)

13.2520

12.3464

16.4008

24.0496

20.6752

0.9058

Dividend or reimbursement of capital per share(8)

1.0000

1.0000

1.2500

3.0000

3.000

0.2036

Other operating data:

Total terminal passengers (thousands of passengers)(9)

11,588

11,773

12,594

13,292

14,695

Total air traffic movements (thousands of movements)

345

336

332

321

337

Aeronautical and non-aeronautical revenues per terminal passenger(10)

185

209

224

231

233

16

7


	For the Year Ended December 31,
	2013	2014	2015	2016	2017
	(in thousands of pesos)				(in thousands of dollars)(1)
Statement of Cash Flows data:
Net cash flows from operating activities	1,005,246	1,610,772	2,069,331	2,386,146	2,921,333	148,024
Net cash flows used in investing activities	(270,880)	(371,844)	(493,235)	(471,357)	(1,542,776)	(78,172)
Net cash flows (used in) from financing activities	(352,793)	35,215	(1,779,049)	(1,514,193)	(1,979,135)	(100,284)
Increase (decrease) in cash and cash equivalents	381,573	1,274,143	(202,953)	400,596	(600,578)	(30,432)
Effects of exchange rate changes on the foreign currency cash balance	—	—	—	—	(72,207)	(3,659)

8

(4)Each of our subsidiary concession holders is required to pay a concession tax to the Mexican government under the Mexican Federal Duties Law (Ley Federal de Derechos) for the use of public domain assets pursuant to the terms of its concession. The concession tax is currently equal to 5% of each concession holder’s gross annual revenues.

(5)We pay Servicios de Tecnología Aeroportuaria, S.A. de C.V. ~~(SETA)~~(“SETA”) a technical assistance fee under the ~~Technical~~technical assistance agreement entered into with SETA providing for management and consulting services (the “Technical Assistance ~~Agreement~~Agreement”), entered into in connection with SETA’s purchase of its Series BB shares. This fee is described in “Item 7. Major Shareholders and ~~Related-Party~~Related‑Party Transactions—~~Related-Party~~Related‑Party Transactions—Arrangements with SETA.”

8

9

market price of the ADSs. Such fluctuations will also affect the U.S. dollar conversion by the depositary of any cash dividends paid in pesos.

On December 31, ~~2014,~~2017, the U.S. Federal Reserve noon buying rate was ~~Ps. 14.75~~ Ps.19.64per U.S.$1.00. On April ~~17, 2015,~~20, 2018, the U.S. Federal Reserve noon buying rate was ~~Ps. 15.32~~Ps.18.61 per U.S.$1.00.

For a discussion of the effects of fluctuations in the exchange rates between the peso and the U.S. dollar, see “Item 10. Additional Information—Exchange Controls.”

10RISK FACTORS

10

the world, including in Mexico and the United States. Although economic conditions improved starting in 2010 and the availability of credit has increased while interest rates remained stable, another recession could significantly affect our ability to access credit to finance our future projects, therefore adversely affecting our business.

International events, such as decreases in oil prices and the slower growth in the Chinese economy, have led to volatility in the international markets and adversely affected the Mexican economy. As a result, Mexico has been forced to cut public expenses, since oil output is one of the main sources of revenue in Mexico. In February 2016, the Mexican government announced a cut of Ps.132.3 billion to the 2016 federal annual budget, equivalent to 0.7% of the Mexican GDP, and in June 2016, it announced a second cut of 31.7 billion equivalent to 0.2% of the Mexican gross domestic product (“GDP”). During the second half of 2011, global economic growth decreased, primarily due to ~~persistent weaknesses such as~~ the jobs crisis in the United States, the ~~sovereign-debt~~sovereign‑debt crises in the Eurozone, which worsened during this period, fiscal problems and the declining prospects for economic growth, especially in

15

16

11

We could be exposed to additional risks if we pursue business opportunities in other countries.

From time to time, we may consider strategic participation in airport assets located in other countries. We may evaluate international expansion opportunities through capital investment in other concessions. Expansion into a market outside of Mexico could require significant capital expenditures. If we pursue an international expansion opportunity, we could face internal or external risks, including, without limitation: (i) a lack of market experience in the relevant country, (ii) foreign exchange and economic volatility, (iii) the dedication of significant management resources to executing the international operation and (iv) exposure to risks inherent to doing business in the relevant country. Our inability to successfully manage the risks and uncertainties related to such business opportunities could have a

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~~If a change in relations with our labor force should occur, such a change~~Table of Contents

Adverse domestic events could ~~have an adverse~~negatively impact ~~on our results of operations.~~

If any conflicts with our employees were to arise, including with our unionized employees (which accounted for 56.7% of our total employees as of December 31, 2014), resulting events such as strikes or other disruptions that could arise with respect to our workforce could have a negative impact on our resultsthe Company’s business and result of operations.

Our unionized employees are represented by a national union of airport workers that operates throughout Mexico. To the extent that any unionized airport workers throughout the country successfully negotiate different employment terms than those we offer at our airports, our operations could be adversely affected by union activities, including organized strikes or other work stoppages. In addition, we could be required to increase our labor expenses to match the terms agreed by the union with other Mexican airport operators.

~~Our operations depend on certain key airline customers, and the loss or suspension of operations of one or more of them could result in a loss of a significant amount of our revenues.~~

~~Of the total aeronautical revenues generated at our airports in 2014, Aeroméxico and~~ its affiliates represented 26.6%, VivaAerobus represented 18.9%, Interjet represented 17.4%, and Volaris represented 11.0%. In recent years, discount carriers, charter carriers, low-cost carriers and other new market entrants have represented a growing proportion of the Mexican commercial airline market. In 2014, passengers traveling on discount, charter and low-cost carriers, such as VivaAerobus, Interjet and Volaris, accounted for approximately 47.3% of our commercial aviation passenger traffic.

None of our contracts with our airline customers obligate them to continue providing service from our airports and, if any of our key customers reduced their use of our airports, competing airlines may not add flights to their schedules to replace any flights no longer handled by our principal airline customers. Our business and results of operations could be adversely affected if we do not continue to generate comparable portions of our revenues from our key customers.

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During 2017, average reference interest rates in Mexico increased by 152 basis points compared to 2016. The annualized interest rates on 28‑day short‑term Mexican treasury bills, or Cetes (Certificados de la Tesorería de la Federación), averaged approximately 3.8%, 3.0%, 3.0%, 4.2% and 6.7% for 2013, 2014, 2015, 2016 and 2017, respectively. To the extent that the Company incurs peso‑denominated debt in the future, it could be at high interest rates.

If inflation or interest rates increase significantly or if the Mexican economy is otherwise further adversely impacted, the Company’s business, financial condition, prospects and results of operations could be materially and adversely affected because, among other things, demand for transportation services may decrease. Similar events may occur, and the recurrence of such events may adversely affect the Company’s business, results of operations, prospects and financial condition. ~~Such delays~~

Depreciation of the peso relative to the U.S. dollar could adversely affect the results of operations and financial condition of the Company.

Following the devaluation of the peso and the economic crisis beginning in 1994, the aggregate passenger traffic volume in the Company’s airports in 1995 (then operated by its predecessor) decreased as compared to prior years, reflecting a decrease in Mexican passenger traffic volume. From December 31, 2015 to December 31, 2016, the peso depreciated by approximately 19.9%, from Ps.17.20 per U.S.$1.00 on December 31, 2015, to Ps.20.62 per U.S.$1.00 on December 31, 2016. From December 31, 2016 to December 31, 2017, the peso slightly recovered from Ps.20.62 per U.S.$1.00 on December 31, 2016, to Ps.19.64 per U.S.$1.00 on December 31, 2017, an appreciation of 4.7%. During the beginning of 2018, the peso continued recovering, reaching Ps.18.61 per U.S.$1.00 on April 20, 2018.

A depreciation of the peso affects the Company’s business in the following ways: (i) international passengers and international flights pay tariffs reported in U.S. dollars; while these tariffs are generally collected in Mexican pesos up to 60 days following the date of each flight, any depreciation of the Mexican peso has a positive impact on the Company’s results from operations, which are reported in Mexican pesos; and (ii) the Company has financial liabilities denominated in U.S. dollars; a depreciation in the Mexican peso results in higher debt balances when converted to Mexican pesos, thus causing foreign exchange losses. As of December 31, 2017, the Company had U.S.$15.6 million of liabilities denominated in U.S. dollars, representing 6.6% of its debt.

Moreover, the depreciation of the peso also affects some of the Company’s airline customers transacting in U.S. dollars, including the purchases or ~~budgetary overruns~~leases of equipment, maintenance and fuel.

Severe devaluation or depreciation of the peso may also ~~could~~result in the disruption of the international foreign exchange markets and may limit ~~our~~the Company’s ability to ~~comply with our master development programs, which are established as~~transfer or to convert pesos into U.S. dollars and other currencies.

Changes to Mexican laws, regulations and decrees applicable to the Company could have a ~~necessary requirement to our concessions.~~material adverse impact on the results of operations.

In ~~accordance with~~ ~~applicable~~ ~~labor~~recent years, the Mexican government has implemented changes to the tax laws ~~subcontractors are~~applicable to Mexican companies, including the Company. The terms of the Company’s concessions do not exempt it from any changes to the Mexican tax laws. Should the Mexican government implement changes to the tax laws that result in the Company having significantly higher income tax, the Company will be required to ~~register their employees with~~pay the ~~Mexican Social Security Institute (~~~~Instituto Mexicano del Seguro Social~~~~), and anyone employing~~higher amounts due pursuant to any such changes, which could have a material adverse impact on its results of operations. For example, the services of subcontractors that have failed to comply with these laws is jointly liable for the payment of social security obligations as well as any applicable penalties. Therefore, if subcontractors providing services at our airports do not have their employees registered at the Mexican Social Security Institute, we could be held jointly liable for the payment of social security obligations that such contractors may have, as well as any applicable penalties.

~~We are exposed to certain risks inherently associated with the rental of real property.~~

We are exposed to risks generally associated with properties rented to third parties, such as a decline in rental market demand, occupancy rates or rent levels, non-payment of minimum rent and royalties by tenants or a weakeningissuance of the ~~real estate market. Moreover, our real estate assets are located~~Business Flat Tax (Impuesto Empresarial a Tasa Única), which was published on ~~or adjacent to our airports~~October 1, 2007 and ~~serve a particular sector of~~repealed in 2013, adversely impacted the rental market, thus exposing us to fluctuations in this specific market. Any of these risks could adversely affect the profitability of our real estate development activities and, consequently, our businessCompany’s results of operations ~~prospects and financial position.~~

~~We are exposed~~in each of the years from 2007 through 2013. In addition, changes to the ~~risk of non-performance by our subcontractors.~~

~~We subcontract certain services (including security and surveillance services, ramp-handling and baggage-handling services and checked-baggage services) necessary~~Mexican constitution or to ~~conduct our operations. The airport is obligated to provide some specific services, like ramp-handling services. In~~any other Mexican laws could also have a material adverse impact on the ~~event that our subcontractors fail to perform their obligations under our agreements, we could incur extra costs in providing replacements and~~ ~~could be exposed to liability for operations that we may have to provide directly, which could adversely affect our~~Company’s business, results of operations, prospects and financial condition.

On November 1, 2013, Mexico’s Congress approved several tax reforms that became effective at the beginning of 2014. These reforms included changes to the Income Tax Law (Ley del Impuesto Sobre la Renta), Value Added Tax Law (Ley del Impuesto al Valor Agregado) and the Tax Code (Código Fiscal de la Federación). The tax reforms also repealed the Business Flat Tax Law and the Tax on Cash Deposits Law (Ley del Impuesto a los Depósitos en Efectivo).

Our ability to expand certain of our airports and to comply with applicable safety guidelines could be limited by difficulties we encounter in acquiring additional land on which to operate our airports.

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~~Certain guidelines established by the ICAO require the maintenance of a perimeter surrounding the land used for airport operations. At several of our airports, we do not control~~ portions of the land within the required perimeters. If portions of such land adjacent to certain of our airports are developed by third parties in a manner that encroaches on the required perimeters, our ability to comply with applicable guidelines of the ICAO or to expand our airport operations could be adversely affected. Also, the growth of certain cities in the proximity of our airports could limit our ability to expand our airports.

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change, in consideration of the goals set forth by the UN Framework Convention on Climate Change; (ii) promotes the education, research, development and technology transfer, innovation and promotion with respect to adapting to and mitigating climate change; and (iii) promotes the transition to a competitive, sustainable and ~~low-carbon~~low‑carbon economy.

~~The~~ Current or future regulations regarding climate change ~~in effect~~ or their enforcement may have a material adverse effect on our business, results of operations, prospects and financial condition.

~~Furthermore,~~To ensure continuous compliance with all environmental requirements, including those related to water use, we maintain an ISO 14001 certification for all of our airports. In addition, twelve of our airports have received the Environmental Quality Certification awarded by the Federal Attorney for Environmental Protection (Procuraduría Federal de Protección al Ambiente). However, compliance with current or future environmental regulations may require us to incur additional costs in order to bring our airports into compliance, and if we fail to comply with current or future environmental regulations, we may be subject to fines and other sanctions.

~~We are liable under Mexican law for inspection of passengers and~~Minority shareholders may be less able to enforce their ~~carry-on luggage.~~rights against the Company, its directors or controlling shareholders in Mexico.

Under ~~the Mexican Airport Law, we are currently responsible for inspecting passengers and their carry-on luggage before they board any aircraft. Under~~ Mexican law, wethe protections afforded to minority shareholders are different from those afforded to minority shareholders in the United States. For example, there are no precedent cases in which Mexican courts found that the directors violated their fiduciary duties. As a result, it may be ~~liable~~difficult for minority shareholders to ~~third parties~~bring an action against directors for ~~personal injury or property damage resulting from~~breach of these duties and achieve the ~~performance of such inspection. In addition, we~~same results as in most jurisdictions in the United States. Procedures for class‑action lawsuits were incorporated into Mexican law and became effective in March 2012. However, these rules and procedures are different and more limited than those in place in the United States. Therefore, it may be ~~required~~more difficult for minority shareholders to ~~adopt additional security measures in~~enforce their rights against the ~~future~~Company, its directors or ~~undertake capital expenditures if~~its controlling shareholders.

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Risks Related to the Regulation of Our Business

The Company provides a public service regulated by the Mexican government, and the flexibility in managing aeronautical activities is limited by the regulatory environment in which the Company operates.

The Company’s aeronautical fees charged to airlines and passengers are regulated, like most airports in other countries. In 2015, 2016 and 2017, approximately 67.5%, 69.8% and 61.0% respectively, of the Company’s total revenues, and approximately 73.2%, 74.4% and 74.9%, respectively, of the sum of its aeronautical and non‑aeronautical revenues were earned from aeronautical services, which are subject to price regulation under the Company’s maximum rates. These regulations may limit the Company’s flexibility in operating its aeronautical activities, which could have a material adverse effect on its business, results of operations, prospects and financial condition. In addition, several of the regulations applicable to the Company’s operations that affect its profitability are authorized (as in the case of the master development programs) or established (as in the case of maximum rates) by the Ministry of Communications and Transportation for five‑year terms. The Company generally does not have the ability to unilaterally change its obligations (such as the investment obligations under its master development programs or the obligation under its concessions to provide a public service) or increase our maximum rates applicable under those regulations should the passenger traffic or other assumptions on which the regulations were based change during the applicable term. In addition, this price regulation system may be amended in the future in a manner that would cause additional sources of the Company’s revenues to be regulated.

The Company cannot predict how the regulations governing the business will be applied.

Many of the laws, regulations and instruments that regulate the Company’s business were adopted or became effective in 1999, and there is only a limited history that would allow it to predict the impact of these legal requirements on its future operations. Mexican law establishes ranges of sanctions that might be imposed should the Company fail to comply with the terms of one of its concessions, the Mexican Airport Law and its regulations or other applicable laws. The Company cannot predict the sanctions that are likely to be assessed for a given violation within these ranges. It may encounter difficulties in complying with these laws, regulations and instruments.

Although the master development programs and maximum rates through 2020 have been set, the Company cannot predict what the master development program for 2021 and following years will establish. When determining the maximum rates for the next five year period (from 2021 to 2025), the Ministry of Communications and Transportation may be solicited by different entities (for example, the Mexican Federal Competition Commission (Comisión Federal de Competencia Económica, or the “Competition Commission”) and the carriers operating at our airports) to modify the maximum rates, thus reducing the Company’s profitability. The laws and regulations governing the business, including the rate‑setting process and the Mexican Airport Law, may change in the future or be applied or interpreted in a way that could have a material adverse effect on the Company’s business, results of operations, prospects and financial condition.

Additionally, the Ministry of Communications and Transportation has announced that it intends to establish by 2024 a new, independent regulatory agency, the Federal Agency of Civil Aviation, that is expected to serve a similar role as the Mexican Bureau of Civil Aviation (Dirección General de Aeronáutica Civil, or “DGAC”) of establishing, coordinating, overseeing and controlling international and national air transportation, as well as the airports, complementary services and generally all activities related to civil aviation. The Company cannot predict whether or when this new agency will be organized, the scope of its authority, the actions that it will take in the future or the effect of any such actions on its business.

On February 20, 2014, a bill of the new Federal Economic Competition Law (Ley Federal de Competencia Económica) was submitted to Mexico’s Congress in furtherance and as a result of certain amendments to Mexico’s Constitution passed in 2013. The bill was enacted and published on May 23, 2014. The law grants broader powers to the Competition Commission, including the authority to regulate essential facilities, order the divestment of assets and eliminate barriers to competition in order to promote access to the market. The new law also sets forth important changes in connection with mergers and anti‑competitive behavior, increases liabilities and the amount of fines that may be imposed for violations of the law and limits the availability of legal defenses against the application of the law. The Competition Commission may therefore determine that the services that the Company provides at its airports are

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essential and require it to implement significant changes to its business operations and thus generate a significant impact on its results of operations.

For example, pursuant to the new Federal Economic Competition Law (Ley Federal de Competencia Económica), the Competition Commission determined that the slots allocated to air carriers at the Mexico City International Airport constitute an essential service. The Competition Commission found that the allocation of slots led to flight delays and cancellations and, among others, hindered entry to new competitors. On July 3, 2017, the Competition Commission issued a series of corrective measures (the “Corrective Measures”) for the Mexico City International Airport to address the inefficiencies and anticompetitive effects observed at such airport.

In response to the Competition Commission’s findings, the Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes) published an amendment to the regulations of the Mexican Airport Law in the Federal Official Gazette on September 29, 2017, as well as general guidelines for the allocation of slots at congested airports (the “General Guidelines”). The Competition Commission found that the reforms issued by the Ministry of Communications and Transportation did not provide a solution to the issues the Competition Commission had addressed and that the General Guidelines directly contradicted the Corrective Measures. As a result, the Competition Commission filed an appeal (controversia constitucional) before the Mexican Supreme Court, arguing that the Competition Commission, not the Ministry of Communications and Transportation, has the authority to regulate the allocation of slots as a public essential service. As of April 20, 2018, the Mexican Supreme Court has not resolved the appeal. If the Mexican Supreme Court rules in favor of the Competition Commission and limits the authority of the Mexican Ministry of Communications and Transportation, new rules or regulations may be established by the Competition Commission, which could adversely affect the Company’s business, results of operations, prospects and financial condition.

Even though none of its airports have been declared congested as of the date of this report, the Company cannot predict whether or when this will happen. Similarly, it cannot predict whether the Competition Commission will declare any of its airports, or any complementary or commercial service provided at the airports, as essential services, and consequently, establish rules, recommendations, guidelines or conditions that could limit or restrict the Company’s aeronautical and/or non-aeronautical revenues.

The Company business is dependent upon international regulations that affect Mexican airlines.

The FAA evaluates the legal framework for civil aviation and issues related to the monitoring, staff training and inspection processes related to regulations issued by the ICAO.

On July 30, 2010, the FAA downgraded Mexico’s aviation safety rating from an ICAO Category 1 rating to an ICAO Category 2 rating, as a result of the FAA’s visit to the Mexican Bureau of Civil Aviation between January and July 2010. The downgrade was attributable to an insufficient number of flight inspectors and administrative and organizational elements in the Mexican Bureau of Civil Aviation.

The consequences of the downgrade from a Category 1 rating to a Category 2 rating were the suspension of the right to operate code‑shared flights and the restriction of Mexican airlines’ ability to increase the frequency of, or add new routes to, the United States and that the international routes of Mexicana de Aviación would not be flown by any Mexican carrier with a Category 2 rating.

Mexico regained its Category 1 safety rating on December 1, 2010; however, Mexico may be downgraded in the future, and the Company cannot be certain of how long this Category 1 rating will be maintained.

The regulations pursuant to which the maximum rates applicable to the aeronautical revenues are established donot guarantee that the consolidated results of operations, or the results of operations of any airport, will be profitable, or that the Company will realize the expected return on investment.

The regulations applicable to the Company’s aeronautical activities establish an annual maximum rate for each airport, which is the maximum annual amount of revenues per workload unit (which is equal to one terminal passenger or 100 kilograms (220 pounds) of cargo) that the Company may earn at that airport from services subject to price

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regulation. For a discussion of the framework for establishing its maximum rates and the application of the rates, see “Item 4. Information on the Company—Regulatory Framework—Revenue Regulation.” On December 21, 2015, the Ministry of Communications and Transportation determined, based on the terms of the Company’s concessions, the maximum rates for its airports from January 1, 2016 through December 31, 2020. Under the terms of the Company’s concessions, there is no guarantee that the results of operations of any airport will be profitable. The Company may not realize its expected return on investment from investments under the master development programs.

The Company’s concessions provide that an airport’s maximum rates will be adjusted periodically for inflation (determined by reference to the Mexican producer price index, excluding fuel). Although the Company is entitled to request additional adjustments to an airport’s maximum rates under certain circumstances including, among others, required capital investments not foreseen in the master development programs, decreases in capital investments attributable to Mexican economy‑related passenger traffic decreases or modifications of the concession tax payable by the Company, its concessions provide that such a request will be approved only if the Ministry of Communications and Transportation determines that certain limited events specified in the concessions have occurred. Therefore, such a request may not be granted in the future. If a request to increase an airport’s maximum rates is not granted, and the Company is impacted by the circumstances that led to the request, its results of operations and financial condition could be adversely affected, and the value of Series B shares and ADSs could decline.

If the Company exceeds the maximum rate at any airport at the end of any year, it could be subject to sanctions.

Historically, the Company has set the prices it charges for aeronautical services at each airport in order to come as close as possible to its authorized maximum rate for that airport in any given year. For example, in 2017, the revenues subject to maximum rate regulation represented approximately 94.5% of the amounts the Company was entitled to earn under the maximum rates for all of its airports. The Company may not be able to establish prices in the future that allows it to collect substantially all of the revenues it is entitled to earn from services subject to price regulation.

The specific prices the Company charges for aeronautical services are determined based on various factors, including projections of passenger traffic volumes, the Mexican producer price index (excluding fuel), the Mexican consumer price index and the value of the peso relative to the U.S. dollar. These variables are outside of the Company’s control. The Company’s projections could differ from the applicable actual data, and, if these differences occur at the end of any year, they could cause the Company to exceed the maximum rate at any one or more of its airports during that year.

If the Company exceeds the maximum rate at any airport at the end of any year, the Ministry of Communications and Transportation may assess a fine and may reduce the maximum rate at that airport in the subsequent year. The imposition of sanctions for violations of certain terms of a concession, including for exceeding an airport’s maximum rate, can result in termination of the concession if the relevant term has been violated and sanctions have been imposed at least three times. In the event that any one of the Company’s concessions is terminated, its other concessions may also be terminated. For a discussion of events that may lead to a termination of a concession, see “Item 4. Information on the Company—Regulatory Framework—Penalties and Termination and Revocation of Concessions and Concession Assets.”

Depreciation of the peso may cause the Company to exceed the maximum rates.

The Company aims to charge prices that are as close as possible to its maximum chargeable rates, and it is entitled to adjust the specific prices only once every six months for inflation (or earlier upon a cumulative increase of 5% in the Mexican producer price index (excluding fuel)). However, the Company generally collects passenger charges from airlines 30 to 60 days following the date of each flight. The tariffs for the services that it provides to international flights or international passengers are generally denominated in U.S. dollars but are paid in Mexican pesos based on the average exchange rate for the month prior to each flight. Accordingly, depreciation of the peso, particularly late in the year, could cause the Company to exceed the maximum rates at one or more of its airports, which could lead to the imposition of fines and the subsequent termination of one or more of its concessions.

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The peso has historically experienced significant volatility. From December 31, 2015 to December 31, 2016, the peso depreciated by approximately 19.9%, from Ps.17.20 per U.S.$1.00 on December 31, 2015 to Ps.20.62 per U.S.$1.00 on December 31, 2016. From December 31, 2016 to December 31, 2017, the peso slightly appreciated by approximately 4.7%, from Ps.20.62 per U.S.$1.00 on December 31, 2016 to Ps.19.64 per U.S.$1.00 on December 31, 2017. On April 20, 2018, the exchange rate was Ps.18.61 per U.S.$1.00.

The Mexican government may terminate or reacquire the concessions under various circumstances, some of which are beyond the control of the Company.

The Company’s concessions are its principal assets, and it would be unable to continue operations without them. A concession may be revoked by the Mexican government for certain prescribed reasons, including the failure to comply with the master development programs, a temporary or permanent halt in the Company’s operations, actions affecting the operations of other concession holders in Mexico, the failure to pay damages resulting from its operations, the failure to keep the rates from exceeding its maximum rates or the failure to comply with any other material term of its concessions. Violations of certain terms of a concession (including violations for exceeding the applicable maximum rate) can result in revocation of a concession only if sanctions have been imposed for violations of the relevant term at least three times. Violations of other terms of a concession can result in the immediate termination of the concession. The concessions may also be terminated upon the Company’s bankruptcy or insolvency. Violations of the Mexican Airport Law, its regulations or other federal regulations could result in similar sanctions. In the event that any one of the Company’s concessions is terminated, its other concessions may also be terminated. For a discussion of events that may lead to a termination of a concession, see “Item 4. Information on the Company—Regulatory Framework—Penalties and Termination and Revocation of Concessions and Concession Assets.”

Under applicable Mexican law and the terms of the Company’s concessions, its concessions may also be made subject to additional conditions, including under the renewed master development programs, which the Company may be unable to meet. Failure to meet these conditions may also result in fines, other sanctions and the termination of the concessions.

The Mexican government may also terminate one or more of the concessions at any time through reversion, if, in accordance with applicable Mexican law, it determines that it is in the public interest to do so. The Mexican government may also assume the operation of any airport in the event of war, public disturbance or a threat to national security. In addition, in the case of a force majeure event, the Mexican government may require the Company to implement certain changes in its operations. In the event of a reversion of the public domain assets that are the subject of the concessions, the Mexican government under Mexican law is required to compensate the Company for the value of the concessions or added costs based on the results of an audit performed by appraisers or, in the case of a mandated change in the Company’s operations, the cost of that change. Similarly, in the event of an assumption of the Company’s operations, other than in the event of war, the government is required to compensate it and any other affected parties for any resulting damages. The Company may not receive compensation equivalent to the value of its investment in or any additional damages related to its concessions and related assets in the event of such action.

In the event that any one of the Company’s concessions is terminated, whether through revocation or otherwise, its other concessions may also be terminated. Thus, the loss of any concession would have a material adverse effect on the business and results of operations.

The Mexican government could grant new concessions that compete with the airports operated by the Company.

The Mexican government could grant additional concessions to operate existing government‑managed airports or authorize the construction of new airports, which could compete directly with the airports operated by the Company.

On February 5, 2014, the Mexican government announced in the Federal Official Gazette that the Ministry of Communications and Transportation granted to Administradora de Servicios Aeroportuarios de Chihuahua, S.A. de C.V., a concession for 20 years to construct, operate and exploit a civil‑aviation airport in the municipality of Bocoyna, Chihuahua, located 250 kilometers (144 miles) from the city of Chihuahua, within an area of 95.5 hectares (0.4 square miles). The government of the state of Chihuahua owns 98% of the capital stock of Administradora de Servicios Aeroportuarios de Chihuahua, S.A. de C.V. The Bocoyna airport is expected to operate daily public and private

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domestic flights. The airport has an ICAO Category 3C rating and could present competition to the Company’s airport located in the municipality of Chihuahua, which has a higher ICAO Category 4D rating and is located 18 kilometers (11.2 miles) from the city of Chihuahua. The Ministry of Communications and Transportation has the capacity to upgrade the category of the airport depending on improvements to infrastructure made by the concessionaire or could downgrade the category if the concessionaire does not maintain adequate conditions in the airport. To date, the airport has not announced the commencement date of operations.

In the future, the Company may face competition from Aeropuerto del Norte, an airport near Monterrey operated by a third party pursuant to a concession. Historically, Aeropuerto del Norte has been used solely for general aviation operations. The state of Nuevo León has requested in the past that the Ministry of Communications and Transportation amend Aeropuerto del Norte’s concession to allow it to serve commercial aviation operations. To date, the Ministry of Communications and Transportation has not amended Aeropuerto del Norte’s concession. However, the Ministry of Communications and Transportation may authorize such an amendment and commercial aviation flights may operate from Aeropuerto del Norte in the future. Any competition from other such airports could have a material adverse effect on the Company’s business, results of operations, prospects and financial condition. Under certain circumstances, the grant of a concession for a new or existing airport must be made pursuant to a public bidding process. In the event that a competing concession is offered in a public bidding process, the Company may not participate in such a process, or it may not successful if it were to participate. See “Item 4. Information on the Company—Regulatory Framework—Grants of New Concessions.”

Risks Related to Our Shareholders

Controladora de Operaciones de Infraestructura, S.A. de C.V. (“CONOISA”) and SETA control our management, and their interests may differ from those of other shareholders.

As of the date of this report, CONOISA is the beneficial owner of 14.5% of our total capital stock. CONOISA directly owns Series B shares representing 1.9% of our total capital stock and Series A shares of SETA representing 99.99% of its capital stock (0.01% owned by ICA Tenedora, S.A. de C.V. (“ICATEN”). SETA in turn owns Series BB shares that represent 12.6% of our capital stock. SETA and CONOISA are each direct subsidiaries of ICATEN and indirect subsidiaries of Empresas ICA, S.A.B. de C.V. (“Empresas ICA”). Pursuant to our bylaws, SETA (as holder of our Series BB shares) has the right to present to our Board of Directors the name or names of the candidates for appointment as our chief executive officer, to appoint and remove half of our executive officers and to elect three members of our Board of Directors. SETA, as holder of our Series BB shares, also has the right, pursuant to our bylaws, to veto certain actions requiring approval of our shareholders (including the payment of dividends, the amendment of our bylaws, investment projects and the amendment of its right to appoint certain members of our senior management). Additionally, most matters voted on by our Board of Directors require the affirmative vote of the directors appointed by our Series BB shareholders. If, at any time after June 14, 2015, SETA were to hold less than 7.65% of our capital stock in the form of Series BB shares, such shares must be converted into Series B shares, which would cause SETA to lose all of its special rights. As long as SETA retains at least 7.65% of our capital stock in the form of Series BB, all of its special rights will remain in place. The rights and obligations of SETA in our management are explained in “Item 7. Major Shareholders and Related Party Transactions—Major Shareholders.”

The termination of the Technical Assistance Agreement would also trigger the conversion of SETA’s remaining Series BB shares into Series B shares, resulting in the termination of all of SETA’s special rights. So long as the Technical Assistance Agreement remains in effect and SETA continues to hold any Series BB shares, it also has the obligation to appoint and nominate the same directors and officers that it currently is entitled to appoint under our bylaws. The Technical Assistance Agreement sets forth certain qualifications that members of our management appointed by them must have. The Technical Assistance Agreement was extended for a term that ends on December 31, 2020 and will be automatically extended for successive one year periods, unless any party thereto elects otherwise, so long as CONOISA retains at least 12.75% of SETA’s capital. For further information on the Technical Assistance Agreement, see “Item 7. Major Shareholders and Related Party Transactions—Related Party Transactions—Arrangements Relating to SETA.”

SETA’s continuing veto rights as holder of at least 7.65% of our capital stock in the form of Series BB shares and its right to nominate, appoint and remove certain directors and officers as holder of Series BB shares, which will

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continue for as long as it owns at least one Series BB share and the Technical Assistance Agreement remains in effect, could adversely impact our operations and constitute an obstacle for us to bring in a new strategic shareholder and/or operator. With the right to nominate, appoint and remove certain members of our senior management, SETA directs the actions of our management in areas such as business strategy, financing, distributions, acquisitions and dispositions of assets or businesses.

Furthermore, in connection with a corporate and debt restructuring carried out by Empresas ICA, ICATEN was incorporated on March 14, 2017 and Empresas ICA transferred all the shares of its direct subsidiaries, including ours, to ICATEN. On August 25, 2017, Empresas ICA and certain of its subsidiaries, including ICATEN and CONOISA, filed a joint prepackaged concurso mercantil plan (the “ICA Concurso Plan”) with the competent bankruptcy court of Mexico. Pursuant to the ICA Concurso Plan, all of the filing entities’ recognized unsecured debt was discharged and paid with shares representing up to 99.99% of ICATEN’s capital stock, resulting in a change of control in our holding structure. On March 1, 2018, the competent bankruptcy court of Mexico approved the ICA Concurso Plan; the relevant judgment was published on March 2, 2018 and became effective as of March 5, 2018.

The interests of SETA and CONOISA, or any new controlling shareholder of ICATEN, may differ from those of our other shareholders and can be contrary to the preferences and expectations of our other shareholders. SETA and CONOISA and the officers nominated or appointed by them may not exercise their rights in ways that favor the interests of our other shareholders. Furthermore, as a result of our board’s decision-making process, officers appointed by SETA and CONOISA may influence decisions taken by the rest of our officers.

If SETA, one of our principal shareholders, should sell or otherwise transfer all or a portion of our Series BB shares that it holds, our operations could be adversely affected.

SETA currently exercises a substantial influence over our management, as described above. SETA, as holder of the Series BB shares, is entitled to present to the Board of Directors the name or names of the candidates for appointment as our chief executive officer, to appoint and remove half of our executive officers, which currently includes our chief financial officer, our chief operating officer and our commercial director, and to elect three of our board members. Elimination of these rights from our bylaws would require the consent of SETA, as long as it owns Series BB shares representing at least 7.65% of our capital stock. Should SETA’s shares fall below this threshold, our management could change significantly, and our operations could be adversely affected as a result. In the event of termination of the Technical Assistance Agreement, SETA would cease to have the special rights of the Series BB shares, which may adversely affect and disrupt our operations.

Risks Related to Our ADSs

You may not be entitled to participate in future preemptive rights offerings.

Under Mexican law, if we issue new shares for cash as part of a capital increase, we generally must grant our shareholders the right to purchase a sufficient number of shares to maintain their existing ownership percentage in the Company. Rights to purchase shares in these circumstances are known as preemptive rights. We may not legally be permitted to allow holders of ADSs in the United States to exercise any preemptive rights in any future capital increase, unless we file a registration statement with the SEC with respect to that future issuance of shares or the offering qualifies for an exemption from the registration requirements of the Securities Act of 1933, as amended.

At the time of any future capital increase, we will evaluate the costs and potential liabilities associated with filing a registration statement with the SEC and any other factors that we consider important to determine whether we will file such a registration statement.

We may not file a registration statement with the SEC in the future to allow holders of ADSs or shares in the United States to participate in a preemptive rights offering. In addition, under current Mexican law, sales by the depository of preemptive rights and distribution of the proceeds from such sales to you, the ADS holders, is not possible. As a result, your equity interest in the Company may be diluted proportionately.

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Holders of ADSs are not entitled to attend shareholders’ meetings, and they may only vote through the depositary.

Under Mexican law, a shareholder is required to deposit its shares with the Secretary of the Company, S.D. Indeval Institución para el Depósito de Valores, S.A. de C.V. (“Indeval”), a Mexican or foreign credit institution or a brokerage house in order to attend a shareholders’ meeting. A holder of ADSs will not be able to meet this requirement, and accordingly is not entitled to attend shareholders’ meetings. A holder of ADSs is entitled to instruct the depositary as to how to vote the shares represented by ADSs, in accordance with the procedures provided for in the deposit agreement, but a holder of ADSs will not be able to vote its shares directly at a shareholders’ meeting or to appoint a proxy to do so.

FORWARD-LOOKING STATEMENTS

This Form 20-F contains forward-looking statements. We may from time to time make forward-looking statements in our annual and periodic reports to the SEC on Forms 20-F and 6-K, in our annual report to shareholders, in offering circulars and prospectuses, in press releases and other written materials and in oral statements made by our officers, directors or employees to analysts, institutional investors, representatives of the media and others. Examples of such forward-looking statements include:

·~~projections of operating revenues, net comprehensive income (loss), net income (loss) per share, capital expenditures, dividends, capital structure or other financial items or ratios,~~

·

projections of operating revenues, net comprehensive income (loss), net income (loss) per share, capital expenditures, dividends, capital structure or other financial items or ratios,

·~~statements of our plans, objectives or goals,~~

·

statements of our plans, objectives or goals,

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·

changes in our regulatory environment,

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refer to Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., together with its subsidiaries, and to properties and assets that we own or operate, unless otherwise specified. Our registered office is located at Torre Latitud, L501, Piso 5, Av. Lázaro Cárdenas 2225, Col. Valle Oriente, San Pedro Garza García, Nuevo León, Mexico, telephone +52.81.8625.4300. Our U.S. agent is Puglisi & Associates. Our U.S. agent’s address is 850 Library Avenue, Suite 204, Newark, Delaware 19711.

Investment by SETA and Its Affiliates

~~Investment by~~ ~~SETA~~ ~~and Its Affiliates~~

In 2000, as part of the first stage of our privatization, the Mexican government sold Series BB shares ~~currently representing 14.7% of our capital stock~~ to SETA in a public bidding process. Pursuant to this transaction, SETA paid the Mexican government a total of ~~Ps. 864,055,578~~Ps.864,055,578 (amount in nominal pesos, excluding interest) (U.S.$76.0 million based on the exchange rate in effect on the date of SETA’s bid) in exchange for:

·~~all of our Series BB shares, which currently represent 14.7% of our outstanding capital stock;~~

·an option to acquire from the Mexican government shares currently representing 35.3% of our capital stock (which subsequently was assigned to and exercised by Aeroinvest, a principal shareholder of SETA);

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·

all of our Series BB shares, which currently represent 12.6% of our outstanding capital stock;

·

an option to acquire from the Mexican government shares currently representing 35.8% of our capital stock (which subsequently was assigned to and exercised by Aeroinvest (currently CONOISA), a principal shareholder of SETA);

·~~an option to subscribe for up to 3% of newly issued Series B shares (1% of which expired unexercised on June 14, 2005, and 2% of which was exercised in September 2006); and~~

·the right and obligation to enter into various agreements with us and the Mexican government, including a participation agreement setting forth the rights and obligations of each of the parties involved in the privatization (including SETA), a 15-year Technical Assistance Agreement setting forth SETA’s right and obligation to provide technical assistance to us in exchange for an annual fee and a shareholders’ agreement under terms established during the public bidding process. These agreements are described in greater detail under “Item 7. Major Shareholders and Related-Party Transactions.”

·

an option to subscribe for up to 3% of newly issued Series B shares (1% of which expired unexercised on June 14, 2005, and 2% of which was exercised in September 2006); and

·

the right and obligation to enter into various agreements with us and the Mexican government, including a participation agreement setting forth the rights and obligations of each of the parties involved in the privatization (including SETA) (the “Participation Agreement”), a 15‑year Technical Assistance Agreement setting forth SETA’s right and obligation to provide technical assistance to us in exchange for an annual fee and a shareholders’ agreement under terms established during the public bidding process. These agreements are described in greater detail under “Item 7. Major Shareholders and Related‑Party Transactions.”

SETA’s current shareholders are:

·Aeroinvest, which owns 74.5% of SETA. Aeroinvest is a wholly owned subsidiary of Empresas ICA. Aeroinvest also directly owns Series B shares representing 23.8% of our total capital stock. Based on data from the Mexican Chamber of the Construction Industry (~~Cámara Mexicana de la Industria de la Construcción~~~~) and the Mexican National Institute of Statistics and Geography, Empresas ICA, the parent of Aeroinvest, is the largest engineering, procurement and construction company in~~ Mexico and the largest provider in Mexico of construction services to both public- and private-sector clients. Empresas ICA’s principal lines of business are the construction of infrastructure facilities, as well as industrial, urban, and housing construction and it has increased its participation in construction-related businesses both in Mexico and in foreign markets, such as infrastructure operations and, as of 2012, mining services. In addition, Empresas ICA is engaged in the development and marketing of real estate, the construction, maintenance and operation of highways, social infrastructure and tunnels and in the management and operation of water supply systems and solid waste disposal systems. Empresas ICA is listed on the Mexican Stock Exchange and the New York Stock Exchange.

·Aéroports de Paris Management, S.A., which owns 25.5% of SETA. Aéroports de Paris Management is a wholly owned subsidiary of Aéroports de Paris, S.A., a French company recognized as a leading European airport group. Aéroports de Paris, S.A. was previously the direct owner of the 25.5% participation in SETA until August 2006 when it transferred its participation in SETA to Aéroports de Paris Management. For more than 40 years, Aéroports de Paris has operated the Charles de Gaulle and Orly airports in France, managing 92.7 million passengers in 2014. Aéroports de Paris is listed on the Eurolist Market of Euronext Paris S.A.

·

CONOISA, which owns 99.9% of SETA. CONOISA is a subsidiary of Empresas ICA. CONOISA also directly owns Series B shares representing 1.9% of our total capital stock. Based on data from the Mexican Chamber of the Construction Industry (Cámara Mexicana de la Industria de la Construcción) and the Mexican National Institute of Statistics and Geography, Empresas ICA, the parent of CONOISA, is the largest engineering, procurement and construction company in Mexico and the largest provider in Mexico of construction services to both public‑ and private‑sector clients.

·

Empresas ICA, which owns 0.01% of SETA. Empresas ICA’s principal line of business is industrial, urban, and housing construction. Empresas ICA has increased its participation in construction‑related businesses both in Mexico and in foreign markets, such as infrastructure operations and mining services. In addition, Empresas ICA is involved in the development and marketing of real estate, the construction, maintenance and operation of highways, social infrastructure and tunnels and in the management and operation of water supply systems and solid waste disposal systems.

Under the Technical Assistance Agreement, SETA provides management and consulting services and transfers industry expertise and technology to us in exchange for a fee, which in ~~2014~~2017 amounted to approximately ~~Ps. 82,461 thousand~~.Ps.135,074. This agreement is more fully described in “Item 7. Major Shareholders and ~~Related-Party~~Related‑Party Transactions.”

Initial Public Offering

On November 29, 2006, a Mexican trust established by Nacional Financiera, S.N.C., or NAFIN (a Mexican national credit institution and development bank owned and controlled by the Mexican Government), acting pursuant to the instructions of the Ministry of Communications and Transportation, sold 48.02% of our outstanding capital stock through a global public offering of shares in the form of ADSs and Series B shares, concurrently in the United States and

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Mexico. The net proceeds from the sale of the shares totaled approximately U.S.$432.2 million and were paid to the Mexican government.

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The following table sets forth our current committed investments under our master development programs by category for ~~2011~~2016 through ~~2015. Figures are updated based on the Producer Price Index (excluding fuel):~~2020:

Committed Investments Under Master Development Programs by

Category
for ~~2011~~2016 through ~~2015~~2020

	For the Year Ended December 31,
	2011	2012	2013	2014	2015	Total 2011–2015	For the Year Ended December 31,
	(in thousands of pesos)											Total
Terminals	54,280	83,349	194,211	247,661	74,682	654,183
							2016	2017	2018	2019	2020	2016 - 2020
							(in thousands of pesos)
Capacity and quality projects Terminals							728,894	1,056,930	708,449	328,359	160,276	2,982,908
Projects to meet ICAO directives							72,562	82,014	25,444	15,149	8,926	204,095
Facilities for disabled passengers							6,018	4,539	1,341	3,154	599	15,651
Environmental projects							35,142	7,876	4,641	3,257	1,654	52,570
Projects requested by competent authorities							5,200	1,124	18,712	30,120	—	55,156
Runways and aprons	79,101	162,877	301,550	274,394	162,485	980,407	83,433	57,811	15,240	11,501	4,277	172,262
Machinery and equipment	165,175	79,650	201,713	145,739	56,494	648,771	169,653	79,285	132,805	142,745	109,892	634,380
Baggage-screening system – investments	156,592	16,636	7,190	3,391	57,636	241,445
Security – investments	53,479	147,129	62,872	46,323	21,776	331,579
Operative standards equipment							186,067	102,753	84,845	106,778	41,249	521,692
Security — investments							95,878	37,010	17,996	18,048	11,968	180,900
Information systems — investments							41,048	42,899	30,103	40,174	25,317	179,541
Baggage-screening system — investments							90,418	34,942	98,036	7,490	3,367	234,253
Other	131,191	75,625	98,911	97,446	15,622	418,795	72,096	14,468	19,592	4,578	98,871	209,605
Total	639,818	565,266	866,447	814,954	388,695	3,275,180	1,586,409	1,521,651	1,157,204	711,353	466,396	5,443,013

Expenditures Under the Master Development Programs and Other Strategic Capital Expenditures

Expenditures incurred to comply with our obligations under the master development programs include expenditures associated with improvements to our concession assets, major maintenance costs and other items recorded as operating costs as incurred. Major maintenance expenditures are not subject to capitalization and reduce our major maintenance provision. See “Item 5. Operating and Financial Review and Prospects—Critical Accounting Policies—Major Maintenance Provision.” Thus, not all expenditures incurred to comply with our obligations under the master development programs will constitute capital expenditures.

In addition to investments in our master development programs, we have also invested in commercial, ~~and~~ real estate and other business opportunities, including our investment in ~~a hotel~~hotels in Terminal 2 of the Mexico City International ~~Airport.~~

Airport and in the Monterrey airport, as well as our industrial park in the Monterrey airport.

The following table sets forth our actual capital expenditures, including capital expenditures made pursuant to our master development programs and other strategic capital expenditures by airport for ~~2012~~2015 through ~~2014:~~2017:

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Actual Capital Expenditures by Airport for ~~2012~~2015 through ~~2014~~2017


		For the Year Ended December 31,			For the Year Ended December 31,
	2012		2013	2014	2015	2016	2017
	(in thousands of pesos)				(in thousands of pesos)
Acapulco	23,875		50,246	60,496	84,354	77,069	372,253
Ciudad Juárez	28,395		11,548	15,194	11,391	10,005	33,404
Culiacán	69,615		20,833	45,264	35,579	9,896	44,389
Chihuahua	30,479		22,099	17,131	3,933	16,202	122,448
Durango	1,673		23,959	16,451	4,948	4,478	19,991
Mazatlán	13,657		15,779	69,158	43,502	19,632	30,222
Monterrey	96,724		85,737	44,869	73,221	98,585	505,445
Reynosa	33,778		18,297	10,416	6,384	23,944	127,353
San Luis Potosí	10,885		84,355	16,777	4,760	24,553	108,757
Tampico	9,772		7,006	13,801	9,691	32,157	46,742
Torreón	10,912		14,717	12,733	14,849	5,834	20,017
Zacatecas	22,251		26,545	14,125	10,488	7,789	19,174
Zihuatanejo	26,488		27,561	20,301	60,483	25,822	28,138
Other	13,626		35,789	79,716	184,762	173,427	103,626
Total	392,130		444,471	436,432	548,346	529,393	1,581,959

The following table sets forth our actual capital expenditures by category across all of our airports for ~~2012 through 2014:~~2015, 2016 and 2017:

Actual Capital Expenditures by Category for ~~2012~~2015 through ~~2014~~2017

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos)

Terminals

175,648

171,747

183,250

Runways and aprons

29,716

82,526

62,466

Machinery and equipment

77,638

28,767

36,916

Land

378

0

0

Baggage screening system – investments

6,789

0

0

Investments in new business ventures

4,292

707

73,771

Other

97,669

160,724

80,029

Total

392,130

444,471

436,432


		For the Year Ended December 31,
		2015
		(in thousands of pesos)
Terminals		255,086
Runways and aprons		45,939
Machinery and equipment		21,491
Investments in new business ventures		126,082
Other		99,748
Total		548,346


	For the Year Ended
	December 31,
	2016	2017
	(in thousands of pesos)
Capacity and quality project	140,989	882,289
Projects to meet ICAO directives	13,412	113,561
Facilities for disabled passengers	820	628
Environmental projects	6,616	12,429
Projects requested by competent authorities	2,283	8,216
Runways and aprons	307,768	313,707
Machinery and equipment	12,552	1,735
Operative standards equipment	11,657	2,863
Security — investments	19,669	78,735
Information systems — investments	7,287	27,309
Baggage-screening system — investments	5,565	58,545
Other	775	81,942
Total	529,393	1,581,959

For the year ended December 31, ~~2014,~~2017, our capital expenditures totaled ~~Ps. 436,432~~Ps.1,581,959 thousand. ~~Our~~2017 was the second year of the 2016-2020 Master Development Program, and we began designing, bidding and implementing all of

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the projects to which we committed at the end of 2015. As a result, our capital expenditures for ~~2014~~2017 were dedicated primarily to our committed investments pursuant to our master development programs. See “Item 5. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Principal Uses of Capital” for a further discussion on our actual expenditures made during ~~2012, 2013~~2015, 2016 and ~~2014~~2017 and their classification in our consolidated financial statements for such periods.

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·~~Terminals~~. We remodeled and performed expansion projects at our airports to improve our departure lounges, baggage-claim and arrival areas, lighting and air conditioning systems, office spaces, taxi and other ground transportation.BUSINESS OVERVIEW

·~~Paved surfaces~~~~. We improved our runways, taxiways and service roads, including lighting systems, to meet and in certain cases exceed ICAO standards. We also expanded several aircraft apron areas.~~Our Operations

·~~Machinery and equipment~~. We invested in machinery and equipment such as aircraft-approved fire-extinguishing vehicles, emergency back-up electricity generators, metal detectors and other security-related equipment, ambulances, elevators, moving walkways and public information systems, among others.

·~~Land.~~ As part of our strategic investments, in 2011 territorial reserves of Ps. 15,283 thousand were purchased to develop and expand our key airports. In 2012, 2013 and 2014, we did not purchase any territorial reserves.

·~~Baggage-screening system – investments~~. We purchased and installed screening equipment in all of our airports to facilitate compliance with the new baggage-screening guidelines to undergo a comprehensive screening process for the detection of explosives.

~~BUSINESS OVERVIEW~~

~~Our Operations~~

Through our subsidiaries, we hold concessions to operate, maintain and develop 13 airports in Mexico, which are concentrated in the country’s central and northern regions. Each of our concessions has a term of 50 years beginning on November 1, 1998. The term of each of our concessions may be extended by the Ministry of Communications and Transportation under certain circumstances for up to 50 additional years. The terms of our concessions also include the right to occupy, use and improve the land appurtenant to our airports, which we do not own and which will revert to the Mexican government upon the termination of our concession. As operator of the 13 airports under our concessions, we charge fees to airlines, passengers and other users for the use of the airports’ facilities. We also derive rental and other income from commercial and diversification activities conducted at our airports, such as the leasing of space to restaurants and retailers, the operation of parking facilities, the operation of the NH Terminal 2 NH Collection Hotel and the Hilton Garden Inn Hotel at the Monterrey airport, among others.

We operate 13 airports, which serve a major metropolitan area (Monterrey), three tourist destinations (Acapulco, Mazatlán and Zihuatanejo), seven regional centers (Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, Torreón and Zacatecas) and two border cities (Ciudad Juárez and Reynosa). Our airports are located in nine of the 3132 Mexican states, covering a territory of approximately 926,421 square kilometers (575,667 square miles), with a population of approximately ~~24.0~~27.6 million according to the Mexican National Institute of Statistics and Geography. All of our airports are designated as international airports under Mexican law, meaning that they are all equipped to receive international flights and to maintain customs and immigration services managed by the Mexican government, as well as refueling services.

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passenger traffic volume in ~~2014,~~2017, according to data published by the Mexican Bureau of Civil Aviation. In ~~2014,~~2017, our Monterrey airport accounted for approximately ~~48.5%~~ 49.7% of our terminal passenger traffic, ~~42.0%~~41.5% of our total revenues and ~~44.6%~~ 44.7% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

Three of our airports, Acapulco, Mazatlán and Zihuatanejo, serve popular Mexican tourist destinations. ~~Of these tourist destinations,~~ Acapulco ~~and Mazatlán are the largest, with Acapulco constituting~~ ~~Mexico’s 19th~~is Mexico’s 26th largest international tourist destination, ~~and~~ Mazatlán is the 17th largest and Zihuatanejo is the 29th largest, based on the number of visitors in ~~2014,~~2017 according to the Mexican ~~National Institute~~Bureau of ~~Migration (~~~~Instituto Nacional de Migración~~).Civil Aviation. Acapulco is a principal port of call for cruise ships. In ~~2014,~~2017, the Acapulco, Mazatlán and Zihuatanejo airports collectively accounted for ~~13.1%~~11.6% of our aggregate terminal passengers, ~~15.5%~~15.6% of our total revenues and ~~13.1%~~11.8% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

Seven of our airports serve small and ~~mid-sized~~mid‑sized cities that are important regional centers of economic activity, with such diverse economic activities as mining (the Durango and Zacatecas airports), maquiladoramanufacturing (the Chihuahua and Torreón airports), petroleum and chemical production (the Tampico airport), agriculture and livestock (the Culiacán airport) and transportation and logistics (the San Luis Potosí airport). In ~~2014,~~2017, these seven regional airports collectively accounted for ~~29.9%~~30.3% of our aggregate terminal passengers, ~~28.3%~~27.7% of our total revenues and ~~27.3%~~27.4% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

The remaining two airports in the group, the Ciudad Juárez and Reynosa airports, serve cities situated along the border of Mexico and the United States. Both Ciudad Juárez and Reynosa are popular entry points to the United States. In ~~2014,~~2017, the Ciudad Juárez and Reynosa airports collectively accounted for 8.4% of our aggregate terminal passengers, ~~7.2%~~7.9% of our total revenues and ~~7.2%~~7.0% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

In addition, we have an investment with a Mexican subsidiary of the international hotel operator NH Hoteles SA under Consorcio Grupo Hotelero T2, S.A. de C.V. to develop and operate a ~~287-room~~287‑room hotel and more than 5,000 square meters (53,820 square feet) of commercial space inside Terminal 2 of Mexico City International Airport under a lease agreement with Mexico City International Airport that expires in 2029. The Terminal 2 NH Collection Hotel opened in August 2009.

In November 2012, as part of our diversification activities, we signed a strategic alliance agreement with VYNMSA Desarrollo Inmobiliario, S.A. de C.V. (“VYNMSA”), to build and operate an industrial park at the Monterrey airport. As part of this strategic alliance, 32.4 hectares (0.13 square miles) within the Monterrey airport’s perimeter are being developed in phases for use as an industrial park. The first phase of the industrial park, which was inaugurated on March 20, 2015, included urbanization works and the construction of a 5,000-square-meter (53,820-square-foot) warehouse, for which we signed a 40-month lease agreement that includes a 2,400-square-meter (25,833-square-foot) expansion. Additionally, we entered into a 42-month lease agreement for a 5,000-square-meter (53,820‑square‑foot) warehouse that was inaugurated on June 10, 2016. In January 2017, we completed the construction of a 10,447 square-meter (112,451 square-foot) warehouse, for which we entered into a 60-month lease agreement on March 22, 2018, and a 3,264 square-meter (35,133 square-foot) expansion, for which we renewed the existing lease agreement for 42 months starting in January 2018. In July 2017, we signed a 42-month lease agreement for a 5,000 square-meter (53,820 square-foot) warehouse, inaugurated in December 2016, that started generating revenue in October 2017, and, in December 2017, we signed a 60-month lease agreement for a 5,000 square-meter (53,820 square-foot) warehouse that was inaugurated in March 2018. As of the date of this report, a 5,000 square-meter (53,820 square-foot) warehouse and a 4,139 square-meter (44,552 square-foot) warehouse, which is already leased for 84 months starting in September 2018, are under construction and expected to be completed in mid-2018.

~~Airlines based in Terminal 2 of Mexico City International Airport include Aeromar, Aeroméxico~~We also have an investment with Grupo Hotelero Santa Fe, S. de R.L. de C.V. (“Grupo Hotelero Santa Fe”), a Mexican hospitality investment and ~~Aeroméxico Connect, Copa, Delta~~operating company, to develop and ~~LAN.~~ operate a 134‑room hotel at the Monterrey airport under the Hilton Garden Inn brand. The hotel started operations on August 27, 2015.

We consider ~~this~~our hotel operations and the operation of our industrial park a key part of our diversification strategy to increase our ~~non-aeronautical~~non‑aeronautical revenues.

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The following table provides summary data for each of our 13 airports for the years ended December 31, ~~2012, 2013~~2015, 2016 and ~~2014:~~2017:


	For the Year Ended December 31,
	2015								2016								2017
							Aeronautical								Aeronautical								Aeronautical
				Sum of			and Non-					Sum of			and Non-					Sum of			and Non-
				Aeronautical			Aeronautical					Aeronautical			Aeronautical					Aeronautical			Aeronautical
				and			Revenues					and			Revenues per					and			Revenues
	Terminal			Non-Aeronautical			per Terminal		Terminal			Non-Aeronautical			Terminal		Terminal			Non-Aeronautical			per Terminal
	Passengers			Revenues (1)			Passenger(2)		Passengers			Revenues(1)			Passenger (2)		Passengers			Revenues(1)			Passenger (2)
	(Number			(in millions					(Number			(in millions					(Number			(in millions			(in pesos)
Airport	in millions)	%		of pesos)	%		(pesos)		in millions)	%		of pesos)	%		(pesos)		in millions)	%		of pesos)	%
Metropolitan destination:
Monterrey	8.5	50.0	%	1,927.4	50.4	%	227.8		9.2	48.9	%	2,359.8	49.3	%	257.1		9.8	49.7	%	2,593.7	49.1	%	265.4
Total metropolitan destination	8.5	50.0		1,927.4	50.4	%	227.8	(3)	9.2	48.9	%	2,359.8	49.3	%	257.1	(3)	9.8	49.7	%	2,593.7	49.1	%	265.4
Tourist destinations:
Acapulco	0.7	4.3	%	166.2	4.3	%	227.5		0.7	3.8	%	179.7	3.8	%	250.1		0.7	3.5	%	192.5	3.6	%	281.0
Mazatlán	0.9	5.0	%	209.5	5.5	%	245.5		1.0	5.2	%	268.4	5.6	%	275.7		1.0	5.1	%	297.3	5.6	%	299.0
Zihuatanejo	0.6	3.3	%	142.5	3.7	%	253.5		0.6	3.0	%	167.4	3.5	%	300.3		0.6	3.0	%	194.9	3.7	%	325.9
Total tourist destinations	2.1	12.6		518.2	13.5	%	241.5	(3)	2.3	12.0	%	615.5	12.9	%	273.6	(3)	2.3	11.6	%	684.7	12.9	%	300.7
Regional destinations:
Chihuahua	1.1	6.6	%	236.2	6.2	%	212.7		1.3	7.0	%	321.3	6.7	%	246.0		1.4	7.2	%	361.5	6.8	%	256.5
Culiacán	1.4	8.5	%	295.9	7.7	%	206.6		1.7	9.2	%	399.4	8.3	%	231.3		1.9	9.7	%	462.7	8.8	%	242.3
Durango	0.3	1.9	%	72.3	1.9	%	228.8		0.4	2.3	%	109.6	2.3	%	258.2		0.4	2.0	%	111.9	2.1	%	282.8
San Luis Potosí	0.4	2.6	%	119.8	3.1	%	269.6		0.5	2.7	%	154.0	3.2	%	305.4		0.6	2.8	%	174.4	3.3	%	315.2
Tampico	0.8	4.5	%	167.0	4.4	%	218.6		0.7	3.8	%	185.1	3.9	%	258.0		0.7	3.6	%	197.4	3.7	%	275.2
Torreón	0.6	3.3	%	128.7	3.4	%	231.2		0.7	3.4	%	171.3	3.6	%	264.9		0.6	3.1	%	178.6	3.4	%	288.6
Zacatecas	0.3	1.9	%	76.3	2.0	%	238.3		0.3	1.8	%	97.7	2.0	%	284.8		0.3	1.8	%	107.3	2.0	%	307.1
Total regional destinations	4.9	29.3	%	1,096.2	28.7	%	221.7	(3)	5.6	30.2	%	1,438.4	30.0	%	253.7	(3)	5.9	30.2	%	1,593.8	30.1	%	267.7
Border destinations:
Ciudad Juárez	0.9	5.1	%	175.4	4.6	%	203.1		1.1	5.9	%	242.4	5.1	%	219.8		1.2	6.0	%	285.6	5.4	%	243.4
Reynosa	0.5	3.0	%	108.3	2.8	%	213.5		0.6	3.0	%	127.7	2.7	%	226.4		0.5	2.5	%	119.4	2.3	%	245.8
Total border destinations	1.4	8.1	%	283.7	7.4	%	207.0	(3)	1.7	8.9	%	370.1	7.8	%	222.0	(3)	1.7	8.5	%	405.0	7.7	%	244.1
Sum of aeronautical and non-aeronautical revenues(1)	16.9	100		3,825.5	100	%	226.1	(3)	18.8	100	%	4,783.8	100	%	254.9	(3)	19.7	100	%	5,277.3	100	%	268.4

(1)

Defined as the sum of aeronautical and non-aeronautical revenues for each airport, which does not include eliminations among our subsidiaries and does not include revenues from construction services. Revenues in millions rounded to the decimal.

For the Year Ended December 31,

2012

2013

2014

Airport

Terminal
Passengers

Sum of Aeronautical
and
Non-Aeronautical
Revenues(1)

Aeronautical and
Non-Aeronautical
Revenues
per
Terminal
Passenger(2)

Terminal
Passengers

Sum of Aeronautical
and
Non-Aeronautical
Revenues(1)

Aeronautical and
Non-Aeronautical
Revenues
per
Terminal
Passenger(2)

Terminal
Passengers

Sum of Aeronautical
and
Non-Aeronautical
Revenues(1)

Aeronautical and
Non-Aeronautical
Revenues
per
Terminal
Passenger(2)

(Number
in millions)

%

(in millions
of pesos)

%

(pesos)

(Number
in millions)

%

(in millions
of pesos)

%

(pesos)

(Number
in millions)

%

(in millions
of pesos)

%

(in pesos)

Metropolitan destination:

Monterrey

6.1

48.5

1,282.1

48.5

210.0

6.4

48.3

1,367.4

48.3

213.1

7.1

48.5

1,528.0

48.4
%
214.4

Total metropolitan destination

6.1

48.5

1,282.1

48.5

210.0

6.4

48.3

1,367.4

48.3

213.1

7.1

48.5

1,528.0

48.4

214.4

Tourist destinations:

Acapulco

0.5

4.3

118.2

4.5

216.1

0.6

4.6

128.7

4.5

208.5

0.6

4.3

140.4

4.4

222.2

Mazatlán

0.7

5.3

157.0

5.9

234.5

0.7

5.5

170.8

6.0

233.5

0.8

5.4

185.8

5.9

235.4

Zihuatanejo

0.5

3.6

107.0

4.1

233.7

0.5

3.5

109.0

3.9

237.2

0.5

3.5

122.8

3.9

241.6

Total tourist destinations

1.7

13.3

382.2

14.5

228.3(3)

1.8

13.6

408.5

15.4

225.9(3)

1.9

13.1

448.9

14.2

232.7

Regional destinations:

Chihuahua

0.9

6.8

166.4

6.3

194.6

0.9

6.7

178.5

6.3

201.5

1.0

6.5

197.3

6.2

205.2

Culiacán

1.2

9.3

220.9

8.4

189.1

1.3

9.4

244.1

8.6

194.9

1.3

8.9

258.4

8.2

197.6

Durango

0.2

1.9

51.8

2.0

214.0

0.2

1.8

51.5

1.8

218.2

0.3

1.7

56.7

1.8

221.6

San Luis Potosí

0.3

2.2

77.1

2.9

284.5

0.3

2.0

80.1

2.8

306.1

0.4

2.5

102.0

3.2

272.8

Tampico

0.6

4.7

120.2

4.6

202.1

0.6

4.6

123.8

4.4

203.4

0.7

4.7

142.5

4.5

206.8

Torreón

0.4

3.3

90.5

3.4

218.1

0.5

3.5

101.4

3.6

217.0

0.5

3.6

114.7

3.6

218.9

Zacatecas

0.3

2.1

57.9

2.2

218.2

0.3

2.0

58.4

2.1

225.0

0.3

1.9

64.4

2.0

226.3

Total regional destinations

3.8

30.3

784.8

29.7

205.9(3)

4.0

29.9

837.9

29.6

211.0(3)

4.4

29.9

936.0

29.6

212.9

Border destinations:

Ciudad Juárez

0.7

5.6

131.0

5.0

187.3

0.7

5.3

135.2

4.8

192.3

0.8

5.2

149.0

4.7

193.8

Reynosa

0.3

2.4

61.9

2.3

204.2

0.4

3.0

79.3

2.8

202.3

0.5

3.2

96.0

3.0

203.4

Total border destinations

1.0

8.0

192.9

7.3

192.4(3)

1.1

8.2

214.5

7.6

195.9(3)

1.2

8.4

245.0

7.8

197.4

Sum of aeronautical and non-aeronautical revenues(1)

12.6

100

2,642.0

100

209.8(3)

13.3

100

2,828.3

100

212.8(3)

14.7

100

3,158.0

100

214.9

(2)

Revenues per terminal passenger are calculated by dividing total revenues for each airport by the number of terminal passengers for each airport. The result has been rounded to the decimal.

~~(1)~~Defined as the sum of aeronautical and non-aeronautical revenues for each airport, which does not include eliminations among our subsidiaries and does not include revenues from construction services. Revenues in millions rounded to the decimal.

~~(2)Revenues per terminal passenger are calculated by dividing total revenues for each airport by the number of terminal passengers for each airport. The result has been rounded to the decimal.~~

~~(3)Represents average total revenues per terminal passenger for the applicable airports.~~

(3)

Represents average total revenues per terminal passenger for the applicable airports.

See Note 26 to our consolidated financial statements for further information by segment. The Company’s reportable segments under IFRS present its airports, ~~and~~ the Terminal 2 NH Collection Hotel, the Hilton Garden Inn Hotel and the OMA-Vynmsa Industrial Park, individually, and information about our holding company and service companies has been combined in the “other segments” line item, as they represent other business activities and are segments that are not required to be reported separately. For purposes of analysis, segments, which are comprised of our 13two hotels and three individual airports, which have been grouped into four different regions according to their location: metropolitan, tourist, regional and border airports.

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invoices for those charges to each airline on a weekly basis and record an account receivable for the invoice corresponding to a flight during the actual month of the flight.

Until April 30, 2010, our principal airline customers were required to pay us no later than 152 days after the invoice delivery date. The term for payment was dependent upon interest rates on short-term Mexican treasury bills, or Cetes, with longer payment terms during periods of lower interest rates (within a defined range). The current agreements between our airports and our principal airline customers provide that ~~from May 1, 2010,~~ payments for passenger charges will be between 30 and 60 days after the invoice delivery date. In ~~2014,~~2017, the weighted average term of payment was 4556 days.

International passenger charges are currently U.S. ~~dollar-denominated~~dollar‑denominated but are collected in pesos based on the average exchange rate during the month prior to the flight, and the value of our revenues from those charges is therefore affected by fluctuations in the value of the U.S. dollar as compared to the peso. Domestic passenger charges are ~~peso-denominated.~~peso‑denominated. In ~~2012, 2013~~2015, 2016 and ~~2014,~~2017, passenger charges represented approximately ~~82.2%~~82.3%, ~~81.7%~~84.9% and ~~81.7%~~85.7%, respectively, of our aeronautical services revenues, ~~55.8%~~55.6%, ~~54.2%~~59.4% and ~~55.5%~~52.2%, respectively, of our total revenues and ~~62.1%~~60.2%, ~~60.5%~~63.2% and ~~60.4%~~64.2%, respectively, of the sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues. Passenger charges vary at each airport and based on the destination of each flight.

Aircraft Landing Charges

~~Aircraft Landing Charges~~

We collect landing charges from all carriers including cargo carriers for their use of our runways and taxiways, illumination systems on the runways and taxiways and other visual landing assistance services. Our landing charges are different for each of our airports and are based on each landing aircraft’s weight (determined as an average of the aircraft’s weight without fuel and maximum takeoff weight), the time of the landing, the origin of the flight and the nationality of the airline or client. In ~~2012, 2013~~2015, 2016 and ~~2014,~~2017 these charges represented approximately ~~5.1%~~5.0%, ~~5.1%~~4.3% and ~~5.2%~~4.1%, respectively, of our

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Airport Security Charges

~~Airport Security Charges~~

We also assess an airport security charge, which is collected from each airline, based on the number of its departing terminal passengers (excluding infants, diplomats and transit passengers), for use of our ~~x-ray~~x‑ray equipment, metal detectors and other security equipment and personnel. These charges are based on the time of day the services are used, the number of departing passengers and the destination of the flight. Independent subcontractors provide airport security services at our airports. In ~~2012, 2013~~2015, 2016 and ~~2014,~~2017 these charges represented approximately ~~1.2%~~1.2%, ~~1.2%~~1.0% and ~~1.2%~~1.1%, respectively, of our aeronautical services revenues, ~~0.8%~~0.8%, ~~0.8%~~0.7% and ~~0.8%~~0.7%, respectively, of our total revenues and ~~0.9%~~0.9%, ~~0.9%~~0.7% and ~~0.9%~~0.8%, respectively, of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

The ICAO, the Mexican Bureau of Civil Aviation and the Office of Public Security issue guidelines for airport security in Mexico. In response to the September 11, 2001 terrorist attacks in the United States, we have taken additional steps to increase security at our airports. The ICAO issued directives in October 2001 establishing new rules and procedures to be adopted at our airports. Under these directives, these rules and procedures were to be implemented immediately and for an indefinite period of time.

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46

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Leasing of Space to Airlines

We derive aeronautical revenues from leasing space in our airports to airlines that is necessary for their operations, such as ticket counters and offices. Our lease agreements with airline customers for the use of space in our airports are typically for terms of three years with provisions for periodic inflation adjustments to our rental fees.

Cargo Handling

~~Cargo-related~~Cargo‑related revenues include revenues from the leasing of space in the airside of our airports to cargo handling agents and shippers, landing fees for each arriving aircraft carrying cargo and a portion of the revenues derived from other complementary services provided in connection with cargo services. ~~Cargo-related~~Cargo‑related revenues are largely aeronautical and therefore subject to maximum rates applicable to aeronautical revenue sources.

Revenues from cargo handling in our airports historically have represented a negligible portion of our total revenues.

Permanent Ground Transportation

We receive revenues from ground transportation vehicles and taxi companies who pay an access fee to operate on our airport premises. Our revenues from providers of ground transport services deemed “permanent” under applicable Mexican law, such as access fees charged to taxis, are subject to price regulation.

Non-Aeronautical Services

General

~~Non-aeronautical~~Non‑aeronautical services historically have generated a significantly smaller portion of our revenues as compared to aeronautical services. Our revenues from ~~non-aeronautical~~non‑aeronautical services are principally derived from (i) commercial activities, such as the leasing of space in our airports to retailers, restaurants and other commercial tenants, maintaining parking facilities and advertising; (ii) diversification activities, such as hotel services, air cargo logistics services, operation and lease of the industrial park and real estate services; and (iii) complementary activities, which principally include the leasing of space to airlines and the ~~baggage-screening~~baggage‑screening system.

None of our revenues from ~~non-aeronautical~~non‑aeronautical services are regulated under our ~~maximum-rate~~maximum‑rate price regulation system, though other authorities may regulate them. For example, our parking facilities may be subject to certain municipal regulations.

As one of the main parts of our business strategy, we have prioritized increasing our ~~non-aeronautical~~non‑aeronautical revenues, seeking new commercial diversification and the development of complementary activities. As a result of our efforts during the last ten years, our ~~non-aeronautical~~non‑aeronautical revenues have increased as a percentage of our revenues. In ~~2000, non-aeronautical~~2006, non‑aeronautical revenues represented ~~12%~~18.7% of our total revenues, while in ~~2012, 2013~~2015, 2016 and ~~2014, non-aeronautical~~2017, non‑aeronautical revenues accounted for approximately ~~21.9%~~24.7%, ~~23.3%~~24.0% and ~~23.9%~~20.4% of our total revenues, respectively. ~~Non-aeronautical~~Non‑aeronautical revenues represented ~~24.4%~~26.8%, ~~26.0%~~25.6% and ~~26.0%~~25.1% in ~~2012, 2013~~2015, 2016 and ~~2014,~~2017, respectively, of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

47

In ~~2012,~~2014, the ~~Reynosa Airport~~Zacatecas airport received a Family Responsibility Company Certificate (Certificado de Empresa Familiarmente Responsible) granted by the Mexican Ministry of Labor and Social Welfare. ~~The~~This certificate was also granted to the Chihuahua and Tampico airports in 2015, to the Cualicán, Durango and Reynosa airports in 2016 and to the Ciudad Juárez, Monterrey, Mazatlán and Torreón airports in 2017.

In 2014 and 2016, the Zacatecas and the Culiacán airports, respectively, received the Inclusive Company Award (Distintivo Empresa Incluyente) granted by the Ministry of Labor and Social Welfare to companies with good labor practices that promote the inclusion and no discrimination of persons with a disability. This award was granted to the Culiacán airport again in 2017.

In December 2016, the Torreón airport received the Distinctive “S” (Distintivo “S”) granted by the Ministry of Tourism to companies with good practices in the development of tourism projects and its commitment to global sustainability criteria. In 2017, the Zihuatanejo airport received this ~~certificate in 2013 and the Zacatecas airport in 2014.~~

For the second time, on February 14, 2014, the Mazatlán airport was named the Best Regional Airport of 2013 in Latin America and the Caribbean by Airports Council International (“ACI”). Previous recognition was previously awarded in 2012.

award.

On February 16, 2015, the Culiacán airport was named the Best Regional Airport of 2014 in Latin America and the Caribbean by ~~ACI.~~Airports Council International (“ACI”), and on February 29, 2016 it received this recognition for the second consecutive year.

For the third time, on March 6, 2018, the Mazatlán airport was named the Best Regional Airport of 2017 in Latin America and the Caribbean by ACI. Previous recognition was awarded in 2014.

REGULATORY FRAMEWORK

Sources of Regulation

The following are the principal laws, regulations and instruments that govern our business and the operation of our airports:

·

the Mexican Airport Law, enacted December 22, 1995;

·

the regulations under the Mexican Airport Law (Reglamento del la Ley de Aeropuertos), enacted February 17, 2000;

·

the Mexican Communications Law (Ley de Vías Generales de Comunicación), enacted February 19, 1940;

·

the Mexican Civil Aviation Law (Ley de Aviación Civil), enacted May 12, 1995;

·

the regulations under the Mexican Civil Aviation Law (Reglamento de la Ley de Aviación Civil), enacted December 7, 1998;

·

the Mexican Federal Duties Law, enacted December 31, 1981, which may be revised on an annual basis and stipulates the applicable basis and rate for calculating the concession fee and duties payable under the current budget;

·

the Mexican National Assets Law (Ley General de Bienes Nacionales), enacted May 20, 2004;

·

the concessions that entitle our subsidiaries to operate our 13 airports for a term of 50 years beginning on November 1, 1998;

·

the Securities Market Law, enacted December 20, 2005;

·

the Mexican Federal Economic Competition Law, enacted May 23, 2014; and

·

the regulations under the Mexican Federal Economic Competition Law (Reglamento de la Ley Federal de Competencia Económica), enacted October 12, 2007.

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·~~the Mexican Airport Law, enacted December 22, 1995;~~

·~~the regulations under the Mexican Airport Law (~~~~Reglamento del la Ley de Aeropuertos~~~~), enacted February 17, 2000;~~

·~~the Mexican Communications Law (~~~~Ley de Vías Generales de Comunicación~~~~), enacted February 19, 1940;~~

·~~the Mexican Civil Aviation Law (~~~~Ley de Aviación Civil~~~~), enacted May 12, 1995;~~

·~~the regulations under the Mexican Civil Aviation Law (~~~~Reglamento de la Ley de Aviación Civil),~~ ~~enacted December 7, 1998;~~

·the Mexican Federal Duties Law, enacted December 31, 1981, which may be revised on an annual basis and stipulates the applicable basis and rate for calculating the concession fee and duties payable under the current budget;

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·~~the Mexican National Assets Law (~~~~Ley General de Bienes Nacionales~~~~), enacted May 20, 2004;~~

·~~the concessions that entitle our subsidiaries to operate our 13 airports for a term of 50 years beginning on November 1, 1998;~~

·~~the Securities Market Law, enacted December 20, 2005~~

·~~the Mexican Federal Economic Competition Law, enacted May 23, 2014; and~~

·~~the regulations under the Mexican Federal Economic Competition Law (~~~~Reglamento de la Ley Federal de Competencia Económica~~~~), enacted October 12, 2007.~~

The Mexican Airport Law and the regulations under the Mexican Airport Law establish the general framework regulating the construction, operation, maintenance and development of Mexican airport facilities. The Mexican Airport Law’s stated intent is to promote the expansion, development and modernization of Mexico’s airport infrastructure by encouraging investment and competition.

Under the Mexican Airport Law, the holder of a concession granted by the Ministry of Communications and Transportation is required to construct, operate, maintain and develop a public service airport in Mexico. A concession generally must be granted pursuant to a public bidding process, except for: (i) concessions granted to either (a) entities considered part of “the federal public administration” as defined under Mexican law or (b) private companies whose principal shareholders may be a state or municipal government; (ii) concessions granted to operators of private airports (who have operated privately for five or more years) wishing to begin operating their facilities as public service airports; and (iii) complementary concessions granted to existing concession holders. Complementary concessions may be granted only under certain limited circumstances, such as where an existing concession holder can demonstrate, among other things, that the award of the complementary concession is necessary to satisfy passenger demand. On June 29, 1998, the Ministry of Communications and Transportation granted 13 concessions to operate, maintain and develop the 13 principal airports in Mexico’s Central North region to our subsidiaries. Because our subsidiaries were considered entities of the federal public administration at the time the concessions were granted, the concessions were awarded without a public bidding process. However, the process of selling Series BB shares ~~currently~~(currently representing ~~14.7%~~12.6% of our capital ~~stock~~stock) to our strategic shareholder pursuant to the privatization process was conducted through a public bidding process. Each of our concessions was amended on September 12, 2000, in order, among other things, to incorporate each airport’s maximum rates and certain other terms as part of the concession.

On February 17, 2000, the regulations under the Mexican Airport Law were issued, and we believe we are currently complying in all material respects with the requirements of the Mexican Airport Law and its regulations. Noncompliance with these regulations could result in fines or other sanctions being assessed by the Ministry of Communications and Transportation, and are among the violations that could result in termination of a concession if they occur three or more times.

On May 20, 2004, a new Mexican National Assets Law was adopted and published in the Official Gazette of the Federation that, among other things, establishes regulations relating to concessions on real property held in the public domain, including the airports that we operate. The new Mexican National Assets Law establishes new grounds for revocation of concessions for failure to pay the applicable taxes, but does not specify which taxes must be paid, including whether certain taxes to municipalities must be paid by the concessionaire.

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of a cancellation, delay or overbooking and/or the damage, loss or destruction of luggage. In addition, passengers with disabilities can transport necessary implements (such as wheelchairs and walkers) at no extra charge.

On February 20, 2014, a bill of the new Federal Economic Competition Law (Ley Federal de Competencia Económica) was submitted to Mexico’s Congress in furtherance and as a result of certain amendments to Mexico’s Constitution passed in 2013. The bill was enacted and published on May 23, 2014. The new law grants broader powers to the Mexican Competition Commission, including the abilities to regulate essential facilities, order the divestment of assets and eliminate barriers to competition in order to promote access to the market. The new law also sets forth important changes in connection with mergers and anti‑competitive behavior, increases liabilities that may be incurred for violations of the law, increases the amount of fines that may be imposed for violations of the law and limits the availability of legal defenses against the application of the law. If the Mexican Competition Commission determines that a specific service or product is an essential facility, it has the ability to regulate access conditions, prices, tariffs or technical conditions for or in connection with the relevant service or product. As of April 20, 2018, the Mexican Competition Commission had not made any determination as to whether the services we render are considered an essential facility.

Role of the Ministry of Communications and Transportation

The Ministry of Communications and Transportation is the principal regulator of airports in Mexico and is authorized by the Mexican Airport Law to perform the following functions:

·

plan, formulate and establish the policies and programs for the development of the national airport system;

·

construct, administer and operate airports and airport‑related services for the public interest;

·

grant, modify and revoke concessions for the operation of airports;

·

establish air transit rules and rules regulating take‑off and landing schedules through the Mexican air traffic control authority;

·

take all necessary action to create an efficient, competitive and non‑discriminatory market for airport‑related services and set forth the minimum operating conditions for airports;

·

establish safety regulations;

·

close airports entirely or partially when safety requirements are not being satisfied;

·

monitor airport facilities to determine their compliance with the Mexican Airport Law, other applicable laws and the terms of the concessions;

·

maintain the Mexican aeronautical registry for registrations relating to airports;

·

impose penalties for failure to observe and perform the rules under the Mexican Airport Law, the regulations thereunder and the concessions;

·

approve any transaction or transactions that directly or indirectly may result in a change of control of a concession holder;

·

approve the master development programs prepared by each concession holder every five years;

·

determine each airport’s maximum rates;

·

approve any agreements entered into between a concession holder and a third party providing airport or complementary services at its airport; and

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·~~plan, formulate and establish the policies and programs for the development of the national airport system;~~

·~~construct, administer and operate airports and airport-related services for the public interest;~~

·~~grant, modify and revoke concessions for the operation of airports;~~

·~~establish air transit rules and rules regulating take-off and landing schedules through the Mexican air traffic control authority;~~

·~~take all necessary action to create an efficient, competitive and non-discriminatory market for airport-related services and set forth the minimum operating conditions for airports;~~

·~~establish safety regulations;~~

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·~~close airports entirely or partially when safety requirements are not being satisfied;~~

·~~monitor airport facilities to determine their compliance with the Mexican Airport Law, other applicable laws and the terms of the concessions;~~

·~~maintain the Mexican aeronautical registry for registrations relating to airports;~~

·~~impose penalties for failure to observe and perform the rules under the Mexican Airport Law, the regulations thereunder and the concessions;~~

·~~approve any transaction or transactions that directly or indirectly may result in a change of control of a concession holder;~~

·~~approve the master development programs prepared by each concession holder every five years;~~

·~~determine each airport’s maximum rates;~~

·~~approve any agreements entered into between a concession holder and a third party providing airport or complementary services at its airport; and~~

·~~perform any other function specified by the Mexican Airport Law.~~

·

perform any other function specified by the Mexican Airport Law.

In addition, under the Mexican Organic Law of the Federal Public Administration (Ley Orgánica de la Administración Pública Federal), the Mexican Airport Law and the Mexican Civil Aviation Law, the Ministry of Communications and Transportation is required to provide air traffic control, radio assistance and aeronautical communications at Mexico’s airports. The Ministry of Communications and Transportation provides these services through Services for Navigation in Mexican Air Space, the Mexican air traffic control authority, which is a division of the Ministry of Communications and Transportation. Since 1978, the Mexican air traffic control authority has provided air traffic control for Mexico’s airports.

Concession Tax

Under Article ~~232-A~~232‑A of the Mexican Federal Duties Law, holders of airport concessions must pay a tax for the use of ~~state-owned~~ state‑owned assets. As such, each of our subsidiary concession holders is required to pay a concession tax based on its gross annual revenues from the use of public domain assets pursuant to the terms of its concession. Currently, this concession tax is set at a rate of ~~5 %~~5% and may be revised at any time by the Mexican government. Our concessions provide that we may request an amendment of our maximum rates if there is a change in this concession tax, although such a request may not be honored in the future.

Scope of Concessions

~~Scope of Concessions~~

We hold (through subsidiary holding companies) concessions granted to us by the Mexican government to use, operate, maintain and develop 13 airports in the Central North region of Mexico in accordance with the Mexican Airport Law. As authorized under the Mexican Airport Law, each of the concessions is held by one of our subsidiaries for an initial ~~50-year~~50‑year term beginning on November 1, 1998. This initial term of each of our concessions may be renewed in one or more terms for up to an additional 50 years, subject to our acceptance of any new conditions imposed by the Ministry of Communications and Transportation and to our compliance with the terms of our concession.

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Transportation Security Administration) is responsible for screening checked baggage. Under Mexican law, however, airlines are responsible for screening checked baggage. Although Mexican law holds airlines liable for screening checked baggage, the purchase, installation and operation of the equipment could increase our exposure to liability as a result of our involvement in the screening process. In addition, although we are not currently obligated to screen checked baggage, we could become obligated to do so, and thus subject to potential liability, if Mexican law changes in the future.

The shares of a concession holder and the rights under a concession may be subject to a lien only with the approval of the Ministry of Communications and Transportation. No agreement documenting liens approved by the Ministry of Communications and Transportation may allow the beneficiary of a pledge to become a concession holder under any circumstances.

A concession holder may not assign any of its rights or obligations under its concession without the authorization of the Ministry of Communications and Transportation. The Ministry of Communications and Transportation is authorized to consent to an assignment only if the proposed assignee satisfies the requirements to be a concession holder under the Mexican Airport Law, undertakes to comply with the obligations under the relevant concession and agrees to any other conditions that the Ministry of Communications and Transportation may require.

General Obligations of Concession Holders

The concessions impose certain obligations on the concession holders, including, among others, (i) the obligation to pay the concession tax described above, (ii) the obligation to deliver concession

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~~Airport Services.~~ Airport services may be rendered only by the holder of a concession or a third party that has entered into an agreement with the concession holder to provide such services. These services include the following:

·~~the use of airport runways, taxiways and aprons for landing, aircraft parking and departure;~~

·~~the use of hangars, passenger walkways, transport buses and car parking facilities;~~

·~~the provision of airport security services, rescue and firefighting services, ground traffic control, lighting and visual aids;~~

·~~the general use of terminal space and other infrastructure by aircraft, passengers and cargo; and~~

·the provision of access to an airport to third parties providing complementary services (as defined in the Mexican Airport Law) and third parties providing permanent ground transportation services (such as taxis).

~~Complementary~~ ~~Services.~~ Complementary services for which the airlines are responsible may be rendered by an airline, by the airport operator or by a third party under agreements with airlines and the airport operator. These services include: ramp and handling services, checked-baggage screening, aircraft security, catering, cleaning, maintenance, repair and fuel supply (provided exclusively by the Mexican Airport and Auxiliary Services agency) and related activities that provide support to air carriers.

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~~Commercial Services.~~ Commercial services involve services that are not considered essential to the operation of an airport or aircraft and include, among other things, the leasing of space to retailers, restaurants and banks and advertising.

~~Diversification Services.~~ Diversification services are not linked to the operation of the airport or aircraft and include hotel services, air cargo logistics services and real estate services. These services are distinguished from commercial services based on the client served; commercial services are for passengers and activities in airport terminals, while the diversification services are intended to develop areas outside airport terminals.

·

the provision of airport security services, rescue and firefighting services, ground traffic control, lighting and visual aids;

·

the general use of terminal space and other infrastructure by aircraft, passengers and cargo; and

·

the provision of access to an airport to third parties providing complementary services (as defined in the Mexican Airport Law) and third parties providing permanent ground transportation services (such as taxis).

·

Complementary Services. Complementary services for which the airlines are responsible may be rendered by an airline, by the airport operator or by a third party under agreements with airlines and the airport operator. These services include: ramp and handling services, checked‑baggage screening, aircraft security, catering, cleaning, maintenance, repair and fuel supply (provided exclusively by the Mexican Airport and Auxiliary Services agency) and related activities that provide support to air carriers.

·

Commercial Services. Commercial services involve services that are not considered essential to the operation of an airport or aircraft and include, among other things, the leasing of space to retailers, restaurants and banks and advertising.

·

Diversification Services. Diversification services are not linked to the operation of the airport or aircraft and include hotel services, air cargo logistics services and real estate services. These services are distinguished from commercial services based on the client served; commercial services are for passengers and activities in airport terminals, while the diversification services are intended to develop areas outside airport terminals.

Third parties rendering airport, complementary or commercial services are required to do so pursuant to a written agreement with the relevant concession holder. We have entered into agreements with third parties for security and surveillance services, ~~ramp-handling~~ramp‑handling and ~~baggage-handling~~baggage‑handling services and ~~checked-baggage~~checked‑baggage services only. We provide all other airport, complementary and commercial services ourselves. All agreements relating to airport or complementary services are required to be approved by the Ministry of Communications and Transportation. The Mexican Airport Law provides that the concession holder is jointly liable with these third parties for compliance with the terms of the relevant concession with respect to the services provided by such third parties. All ~~third-party~~third‑party service providers are required to be corporations incorporated under Mexican law.

Under the reforms to the Mexican Airport Law, enacted and published in the Federal Official Gazette on January 26, 2015, a concession holder may not limit the number of providers of complementary services in its airport, except in instances in which space, efficiency and/or safety warrant such a limitation. If a concession holder denies entry to any complementary service provider, that service provider may file a complaint before the Ministry of Communications and Transportation. A concession holder is also required to allow for a competitive market for complementary services. A concession holder may only limit the number of providers of complementary services in its airport due to space, efficiency and safety considerations. If the number of complementary service providers must be limited due to these considerations, contracts for the provision of complementary services must be awarded through a competitive bidding process.

Airport and complementary services are required to be provided to all users in a uniform and regular manner, without discrimination as to quality, access or price. Concession holders are required to provide airport and complementary services on a priority basis to military aircraft, ~~disaster-support~~disaster‑support aircraft and aircraft experiencing emergencies. Airport and complementary services are required to be provided at no cost to military aircraft and aircraft performing national security activities.

In the event of force majeure, the Ministry of Communications and Transportation may impose additional regulations governing the provision of services at airports, but only to the extent necessary to address the force majeureevent. The Mexican Airport Law allows the airport administrator appointed by a concession holder to suspend the provision of airport services in the event of force majeure.

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Master Development Programs

Concession holders are also required to submit to the Ministry of Communications and Transportation a master development program describing, among other things, the concession holder’s construction and maintenance plans.

Every five years, we are required to submit to the Ministry of Communications and Transportation for approval a master development program for each of our concessions describing, among other matters, our strategy, traffic forecasts, and expansion, modernization and maintenance plans for the

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During ~~2010,~~2015, we ~~negotiate~~dnegotiated the master development program for the ~~2011~~2016 to ~~2015~~2020 period with the Ministry of Communications and Transportation for each of our subsidiary concession holders. This ~~five-year~~five‑year program is in effect from January 1, ~~2011~~2016 until December 31, ~~2015.~~2020.

Revenue Regulation

~~Revenue Regulation~~

The Mexican Airport Law provides for the Ministry of Communications and Transportation to establish price regulations for services for which the Competition Commission determines that a competitive market does not exist. In 1999, the Competition Commission issued a ruling stating that competitive markets generally do not exist for airport services and airport access provided to third parties rendering complementary services. This ruling authorized the Ministry of Communications and Transportation to establish regulations governing the prices that may be charged for airport services and access fees that may be charged to third parties rendering complementary services in our airports. On September 12, 2000, ~~a new regulation,~~ the Rate Regulation ~~was incorporated within the terms of each of our concessions. This regulation~~(Regulación Tarifaria), which provides a framework for the setting by the Ministry of Communications and Transportation of ~~five-year~~five‑year maximum ~~rates.~~rates, was incorporated within the terms of each of our concessions.

Regulated Revenues

The majority of our revenues are derived from providing aeronautical services, which generally are related to the use of airport facilities by airlines and passengers and principally consist of a fee for each departing passenger, aircraft landing fees based on the aircraft’s weight and arrival time, an aircraft parking fee, a fee for the transfer of passengers from the aircraft to the terminal building and a security charge for each departing passenger.

Since January 1, 2000, all of our revenues from aeronautical services have been subject to a price regulation system established by the Ministry of Communications and Transportation. This price regulation system establishes a “maximum rate” for each airport for every year in a ~~five-year~~five‑year period. The “maximum rate” is the maximum amount of revenues per “workload unit” that may be earned at an airport each year from regulated revenue sources. Under this regulation, a workload unit is equivalent to one terminal passenger or 100 kilograms (220 pounds) of cargo. We are able to set the specific prices for regulated services, other than complementary services and the leasing of space to airlines, for each of our airports, every six months (or more frequently if accumulated inflation since the last adjustment exceeds 5%), as long as the combined revenues from regulated services at an airport does not exceed the maximum rate per workload unit at that airport on an annual basis. Since our aggregate revenues resulting from regulated services are not otherwise restricted, increases in passenger and cargo traffic increase the workload units permit greater revenues overall within each ~~five-year~~five‑year period for which maximum rates are established.

In ~~2014,~~2017, approximately ~~67.9%~~61.0% of our total revenues were earned from aeronautical services subject to price regulation under the maximum rates, and approximately ~~74.0%~~74.9% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues were earned from aeronautical services subject to price regulation under the maximum rates.

Each airport’s maximum rate is to be determined for each year by the Ministry of Communications and Transportation based on a general framework established in our concessions. This framework reflects, among other factors, projections of an airport’s revenues, operating costs and capital expenditures, as well as the estimated cost of capital related to regulated services and projected annual efficiency adjustments determined by the Ministry of Communications and Transportation. The schedule of maximum rates for each airport is to be established every five years.

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through December 31, 2010. In December 2010, the Ministry of Communications and Transportation set airport maximum rates for the period from January 1, 2011 through December 31, 2015.

Maximum Rates for 2016 through 2020

~~The following tables~~On December 30, 2015, the Ministry of Communications and Transportation set ~~forth~~ the new airport maximum rates for ~~each of our airports for~~ the ~~periods indicated under our 2006 to 2010 master development programs and under the master development programs that went into effect as of~~five‑year period from January 1, ~~2011.~~2016 through December 31, 2020. These maximum rates are subject to adjustment only under the limited circumstances described below under “Special Adjustments to Maximum Rates.”

~~Historical~~ ~~Maximum~~ ~~Rates~~~~(1)~~

For the Year Ended December 31,

2006

2007

2008

2009

2010

Acapulco

185.64

184.23

182.86

181.48

180.12

Ciudad Juárez

145.05

143.96

142.88

141.81

140.75

Culiacán

160.53

159.33

158.14

156.94

155.76

Chihuahua

157.34

156.16

154.98

153.81

152.66

Durango

179.27

177.93

176.58

175.27

173.95

Mazatlán

184.25

182.87

181.50

180.13

178.79

Monterrey

148.48

147.36

146.25

145.17

144.08

Reynosa

168.15

166.89

165.64

164.40

163.16

San Luis Potosí

125.53

124.59

123.65

122.73

121.81

Tampico

177.84

176.51

175.19

173.88

172.56

Torreón

181.51

180.13

178.79

177.44

176.11

Zacatecas

188.09

186.68

185.27

183.88

182.51

Zihuatanejo

189.49

188.07

186.65

185.26

183.87

~~(1)Expressed in constant pesos~~ The following table sets forth the maximum rates for each of our airports under our 2016 to 2020 master development programs that went into effect as of ~~December 31, 2014, as required by the maximum rate regulation. The maximum rate for each succeeding year from 2006 is reduced by the efficiency factor of 0.75% per year.~~January 1, 2016:

84Current Maximum Rates

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·Projections for the following 15 years of workload units (each of which is equivalent to one terminal passenger or 100 kilograms (220 pounds) of commercial cargo), operating costs and expenses related to services subject to price regulation and pre-tax earnings from services subject to price regulation. The concessions provide that projections for workload units and expenses related to regulated services are to be derived from the terms of the relevant concession holder’s master development program for the following 15 years.

·Projections for the following 15 years of capital expenditures related to regulated services, based on air traffic forecasts and quality of standards for services to be derived from the master development programs.

·Reference values, which initially were established in the concessions and are designed to reflect the net present value of the regulated revenues minus the corresponding regulated operating costs and expenses (excluding amortization and depreciation), and capital expenditures related to the provision of regulated services plus a terminal value.

·A discount rate to be determined by the Ministry of Communications and Transportation. The concessions provide that the discount rate shall reflect the cost of capital to Mexican and international companies in the airport industry (on a pre-tax basis), as well as Mexican economic conditions. The concessions provide that the discount rate shall be at least equal to the average yield of long-term Mexican government debt securities quoted in the international markets during the prior 24 months plus a risk premium to be determined by the

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~~Ministry of Communications and Transportation based on the inherent risk of the airport business in~~ ~~Mexico.~~

·An efficiency factor to be determined by the Ministry of Communications and Transportation. For the five-year period ending December 31, 2010, the maximum rates applicable to our airports reflect a projected annual efficiency improvement of 0.75%. For the five-year period ending December 31, 2015, the maximum rates applicable to our airports reflect a projected annual efficiency improvement of 0.70%.

·

A discount rate to be determined by the Ministry of Communications and Transportation. The concessions provide that the discount rate shall reflect the cost of capital to Mexican and international companies in the airport industry (on a pre‑tax basis), as well as Mexican economic conditions. The concessions provide that the discount rate shall be at least equal to the average yield of long term Mexican government debt securities quoted in the international markets during the prior 24 months plus a risk premium to be determined by the Ministry of Communications and Transportation based on the inherent risk of the airport business in Mexico.

·

An efficiency factor to be determined by the Ministry of Communications and Transportation. For the five‑year period ending December 31, 2015, the maximum rates applicable to our airports reflected an annual efficiency improvement of 0.70%. For the five‑year period ending December 31, 2020, the maximum rates applicable to our airports reflect a projected annual efficiency improvement of 0.70%.

Our concessions specify a discounted cash flow formula to be used by the Ministry of Communications and Transportation to determine the maximum rates that, given the projected ~~pre-tax~~pre‑tax earnings, the efficiency adjustment, capital expenditures and discount rate, would result in a net present value equal to the reference values established in connection with the last determination of maximum rates. In connection with the preparation of the current master development programs, we prepared a proposal to submit to the Ministry of Communications and Transportation establishing the values we believe should be used with respect to each variable included in the determination of maximum rates, including the efficiency factor, projected capital expenditures and the discount rate. The maximum rates ultimately established by the Ministry of Communications and Transportation reflect a negotiation between the Ministry and us regarding these variables.

The concessions provide that each airport’s reference values, discount rate and the other variables used in calculating the maximum rates do not represent an undertaking by the Ministry of Communications and Transportation or the Mexican government as to the profitability of any concession holder. Therefore, whether or not the maximum rates (or the amounts up to the maximum rates that we have been able to collect) multiplied by workload units at any airport generate a profit or exceed our profit estimates, or reflect the actual profitability, discount rates, capital expenditures or productivity gains at that airport over the ~~five-year~~five‑year period, we are not entitled to any adjustment to compensate for this shortfall.

To the extent that such aggregate revenues per workload unit exceed the relevant maximum rate, the Ministry of Communications and Transportation may proportionately reduce the maximum rate in the immediately subsequent year and assess penalties equivalent to 1,000 to 50,000 times the general minimum wage in the Federal District (Mexico City). ~~On December 31, 2014, the~~The daily minimum wage in Mexico City as of January 1, ~~2015~~2018 was ~~Ps. 70.10.~~Ps.88.36. As a result, the maximum penalty at such date could have been ~~Ps. 3,505~~Ps.4,418 thousand (U.S.$ ~~237.8 thousand)~~223,862) per airport.

In 2000 and 2001, our concessions provided that the calculation of workload units included only terminal passengers. Beginning January 1, 2002, the Ministry of Communications and Transportation established that the calculation of workload units would also include commercial cargo for subsequent years. The current workload unit calculation is therefore equal to one terminal passenger or 100 kilograms (220 pounds) of commercial cargo.

Special Adjustments to Maximum Rates

Once determined, each airport’s maximum rates are subject to special adjustment only under the following circumstances:

·

Change in law or natural disasters. A concession holder may request an adjustment in its maximum rates if a change in law with respect to quality standards or safety and environmental protection results in operating costs or capital expenditures that were not contemplated when its maximum rates were determined. In addition, a concession holder may also request an adjustment in its maximum rates if a natural disaster affects demand or requires unanticipated capital expenditures. Requests on these grounds may not be approved in the future.

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·~~Change in law or natural disasters.~~ A concession holder may request an adjustment in its maximum rates if a change in law with respect to quality standards or safety and environmental protection results in operating costs or capital expenditures that were not contemplated when its maximum rates were determined. In addition, a concession holder may also request an adjustment in its maximum rates if a natural disaster affects demand or

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·

Macroeconomic conditions. A concession holder may also request an adjustment in its maximum rates if, as a result of a decrease of at least 5% in Mexican GDP in a 12‑month period, the workload units processed in the concession holder’s airport are less than that projected when its master development program was approved. To grant an adjustment under these circumstances, the Ministry of Communications and Transportation under the master development program must have already allowed the concession holder to decrease its projected capital improvements as a result of the decline in passenger traffic volume. Requests on these grounds may not be approved in the future.

·

Increase in concession tax under Mexican Federal Duties Law. An increase in duty payable by a concession holder under the Mexican Federal Duties Law entitles the concession holder to request an adjustment in its maximum rates. Requests on these grounds may not be approved in the future.

·

Failure to make required investments or improvements. The Ministry of Communications and Transportation is required to review annually each concession holder’s compliance with its master development program (including the provision of services and the making of capital investments). If a concession holder fails to satisfy any of the investment commitments contained in its master development program, the Ministry of Communications and Transportation is entitled to decrease the concession holder’s maximum rates and assess penalties.

·

Excess revenues. In the event that revenues subject to price regulation per workload unit in any year exceed the applicable maximum rate, the maximum rate for the following year will be decreased to compensate airport users for overpayment in the previous year. Under these circumstances, the Ministry of Communications and Transportation is also entitled to assess penalties against the concession holder.

~~requires unanticipated capital expenditures. Requests on these grounds may not be approved in the future.~~

·~~Macroeconomic conditions.~~ A concession holder may also request an adjustment in its maximum rates if, as a result of a decrease of at least 5% in Mexican GDP in a 12-month period, the workload units processed in the concession holder’s airport are less than that projected when its master development program was approved. To grant an adjustment under these circumstances, the Ministry of Communications and Transportation under the master development program must have already allowed the concession holder to decrease its projected capital improvements as a result of the decline in passenger traffic volume. Requests on these grounds may not be approved in the future.

·~~Increase in concession tax under Mexican Federal Duties Law.~~ An increase in duty payable by a concession holder under the Mexican Federal Duties Law entitles the concession holder to request an adjustment in its maximum rates. Requests on these grounds may not be approved in the future.

·~~Failure to make required investments or improvements.~~ The Ministry of Communications and Transportation is required to review annually each concession holder’s compliance with its master development program (including the provision of services and the making of capital investments). If a concession holder fails to satisfy any of the investment commitments contained in its master development program, the Ministry of Communications and Transportation is entitled to decrease the concession holder’s maximum rates and assess penalties.

·~~Excess revenues.~~ In the event that revenues subject to price regulation per workload unit in any year exceed the applicable maximum rate, the maximum rate for the following year will be decreased to compensate airport users for overpayment in the previous year. Under these circumstances, the Ministry of Communications and Transportation is also entitled to assess penalties against the concession holder.

Increases in Maximum Rates Associated with Baggage-Screening Services

On ~~May 1, 2014,~~November 23, 2012, the Mexican Bureau of Civil aviation published mandatory ~~circular~~circulars CO SA-17.2/10 R1, superseded by circulars CO SA-17.2/10 R3 and CO SA-17.9/16, which ~~supersedes mandatory circular CO SA-17.2/10 R2 and requires~~required that all airlines screen checked baggage and that all airports have screening equipment that complies with specified guidelines to provide the service to the airlines. On November 30, 2012, after negotiation with the Mexican Bureau of Civil Aviation, the maximum rates of our thirteen airports were increased to take into account the maintenance cost incurred due to the operation of ~~baggage-screening~~baggage‑screening equipment. The maximum rate increase became effective on January 1, 2013.

Ownership Commitments and Restrictions

The concessions require us to retain a 51% direct ownership interest in each of ~~its~~our 13 concession holders throughout the term of these concessions. Any acquisition by us or one of our concession holders of any additional airport concessions or of a beneficial interest of 30% or more of another concession holder requires the consent of the Competition Commission. In addition, the concessions prohibit us and our concession holders, collectively or individually, from acquiring more than one concession for the operation of an airport along each of Mexico’s southern and northern borders.

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operations and air traffic movements in its airport and to provide the Ministry of Communications and Transportation with any information that it may request. Each concession holder is also required to publish its annual audited consolidated financial statements in a principal Mexican newspaper within the first four months of each year.

The Mexican Airport Law provides that any person or group directly or indirectly acquiring control of a concession holder is required to obtain the consent of the Ministry of Communications and Transportation to such control acquisition. For purposes of this requirement, control is deemed to be acquired in the following circumstances:

·~~if a person acquires 35% or more of the shares of a concession holder;~~

·~~if a person has the ability to control the outcome of meetings of the shareholders of a concession holder;~~

·~~if a person has the ability to appoint a majority of the members of the board of directors of a concession holder; or~~

·~~if a person by any other means acquires control of an airport.~~

·

if a person acquires 35% or more of the shares of a concession holder;

·

if a person has the ability to control the outcome of meetings of the shareholders of a concession holder;

·

if a person has the ability to appoint a majority of the members of the board of directors of a concession holder; or

·

if a person by any other means acquires control of an airport.

Under the regulations to the Mexican Airport Law, any company acquiring control of a concession holder is deemed to be jointly and severally liable with the concession holder for the performance of the terms and conditions of the concession.

The Ministry of Communications and Transportation is required to be notified upon any change in a concession holder’s chief executive officer, board of directors or management. A concession holder is also required to notify the Ministry of Communications and Transportation at least 90 days prior to the adoption of any amendment to its bylaws concerning the dissolution, corporate purpose, merger, transformation or ~~spin-off~~spinoff of the concession holder.

Penalties and Termination and Revocation of Concessions and Concession Assets

Termination of Concessions

Under the Mexican Airport Law and the terms of the concessions, a concession may be terminated upon any of the following events:

·~~the expiration of its term;~~

·~~the surrender by the concession holder;~~

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·

the expiration of its term;

·

the surrender by the concession holder;

·~~the revocation of the concession by the Ministry of Communications and Transportation;~~

·~~the reversion of the Mexican government-owned assets that are the subject of the concession (principally real estate, improvements and other infrastructure);~~

·~~the inability to achieve the purpose of the concession, except in the event of~~ ~~force majeure~~;

·~~the dissolution, liquidation or bankruptcy of the concession holder; or~~

·~~the failure by the concession holder to satisfy the shareholding obligations set forth in the concession.~~

·

the revocation of the concession by the Ministry of Communications and Transportation;

·

the reversion of the Mexican government‑owned assets that are the subject of the concession (principally real estate, improvements and other infrastructure);

·

the inability to achieve the purpose of the concession, except in the event of force majeure;

·

the dissolution, liquidation or bankruptcy of the concession holder; or

·

the failure by the concession holder to satisfy the shareholding obligations set forth in the concession.

Following a concession’s termination, the concession holder remains liable for the performance of its obligations during the term of the concession.

On May 20, 2004, a new Mexican National Assets Law was adopted and published in the Federal Official Gazette that, among other things, establishes regulations relating to concessions on real property held in the public domain, including the airports that we operate. The Mexican National Assets Law establishes additional grounds for revocation of concessions, for failure to pay certain applicable taxes.

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Revocation of Concessions

A concession may be revoked by the Ministry of Communications and Transportation under certain conditions, including:

·~~the failure by a concession holder to begin operating, maintaining and developing an airport pursuant to the terms established in the concession;~~

·~~the failure by a concession holder to maintain insurance as required under the Mexican Airport Law;~~

·~~the assignment, encumbrance, transfer or sale of a concession, any of the rights thereunder or the assets underlying the concession in violation of the Mexican Airport Law;~~

·~~any alteration of the nature or condition of an airport’s facilities without the authorization of the Ministry of Communications and Transportation;~~

·use, with a concession holder’s consent and without the approval of air traffic control authorities, of an airport by any aircraft that does not comply with the requirements of the Mexican Civil Aviation Law, that has not been authorized by the Mexican air traffic control authority or that is involved in the commission of a felony;

·~~knowingly appointing a chief executive officer or board member of a concession holder that is not qualified to perform his functions under the law as a result of having violated criminal laws;~~

·~~the failure by the concession holder to pay the Mexican government the concession tax;~~

·~~the failure by the concession holder to beneficially own at least 51% of the capital stock of its subsidiary concession holders;~~

·~~a violation of the safety regulations established in the Mexican Airport Law and other applicable laws;~~

·~~a total or partial interruption of the operation of an airport or its airport or complementary services without justified cause;~~

·~~the failure to maintain the airport’s facilities;~~

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·

the failure by a concession holder to begin operating, maintaining and developing an airport pursuant to the terms established in the concession;

·

the failure by a concession holder to maintain insurance as required under the Mexican Airport Law;

·~~the provision of unauthorized services;~~

·~~the failure to indemnify a third party for damages caused by the provision of services by the concession holder or a third-party service provider;~~

·~~charging prices higher than those registered with the Ministry of Communications and Transportation for regulated services or exceeding the applicable maximum rate;~~

·~~any act or omission that impedes the ability of other service providers or authorities to carry out their functions within the airport; or~~

·~~any other failure to comply with the Mexican Airport Law, its regulations and the terms of a concession.~~

·

the assignment, encumbrance, transfer or sale of a concession, any of the rights thereunder or the assets underlying the concession in violation of the Mexican Airport Law;

·

any alteration of the nature or condition of an airport’s facilities without the authorization of the Ministry of Communications and Transportation;

·

use, with a concession holder’s consent and without the approval of air traffic control authorities, of an airport by any aircraft that does not comply with the requirements of the Mexican Civil Aviation Law, that has not been authorized by the Mexican air traffic control authority or that is involved in the commission of a felony;

·

knowingly appointing a chief executive officer or board member of a concession holder that is not qualified to perform his functions under the law as a result of having violated criminal laws;

·

the failure by the concession holder to pay the Mexican government the concession tax;

·

the failure by the concession holder to beneficially own at least 51% of the capital stock of its subsidiary concession holders;

·

a violation of the safety regulations established in the Mexican Airport Law and other applicable laws;

·

a total or partial interruption of the operation of an airport or its airport or complementary services without justified cause;

·

the failure to maintain the airport’s facilities;

·

the provision of unauthorized services;

·

the failure to indemnify a third party for damages caused by the provision of services by the concession holder or a third‑party service provider;

·

charging prices higher than those registered with the Ministry of Communications and Transportation for regulated services or exceeding the applicable maximum rate;

·

any act or omission that impedes the ability of other service providers or authorities to carry out their functions within the airport; or

·

any other failure to comply with the Mexican Airport Law, its regulations and the terms of a concession.

The Ministry of Communications and Transportation is entitled to revoke a concession without prior notice as a result of the first six events described above. In the case of other violations, a concession may be revoked as a result of a violation only if sanctions have been imposed at least three times with respect to the same violation.

Pursuant to the terms of our concessions, in the event the Ministry of Communications and Transportation revokes one of our concessions, it is entitled to revoke all of our other concessions.

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According to the Mexican National Assets Law, Mexico’s national patrimony consists of private and ~~government-owned~~government‑owned assets of Mexico. The surface area of our airports and improvements on such space are considered ~~government-owned~~government‑owned assets. A concession concerning ~~government-owned~~government‑owned assets may be “rescued,” or revert to the Mexican government prior to the concession’s expiration, when considered necessary for the public interest. In exchange, the Mexican government is required to pay compensation as determined by expert appraisers. Following a declaration of “rescue,” or reversion, the assets that were subject to the concession are automatically returned to the Mexican government.

In the event of war, public disturbances or threats to national security, the Mexican government may assume the operations (through a process known as requisa) of any airport, airport and complementary services as well as any other airport assets. Such government action may exist only during the duration of the emergency. Except in the case of war, the Mexican government is required to compensate all affected parties for any damages or losses suffered as a result of such government action. If the Mexican government and a concession holder cannot agree as to the appropriate amount of damages or losses, the amount of damages shall be determined by experts jointly appointed by both parties, and the amount of losses shall be determined based on the average net income of the concession holder during the previous year.

The Mexican Airport Law provides that sanctions of up to 400,000 times the minimum daily wage in the Federal District (Mexico City) may be assessed for failures to comply with the terms of a concession. ~~On December 31, 2014, the~~The daily minimum wage in Mexico City as of January 1, ~~2015~~2018 was ~~Ps. 70.10.~~Ps.88.36. As a result, the maximum penalty at such date could have been ~~Ps. 28,040~~Ps.35,344 thousand (U.S.$ ~~1.9~~1.8 million) per airport.

Consequences of Termination or Revocation of a Concession

Upon termination, whether as a result of expiration or revocation, the real estate and fixtures that were the subject of the concession automatically revert to the Mexican government. In addition, upon termination, the Mexican government has a preemptive right to acquire all other assets used by the concession holder to provide services under the concession at prices determined by expert appraisers appointed by the Ministry of Communications and Transportation. Alternatively, the Mexican

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·parties who hold permits to operate civil aerodromes and intend to transform the aerodrome into an airport so long as (i) the proposed change is consistent with the national airport development programs and policies, (ii) the civil aerodrome has been in continuous operation for the previous five years and (iii) the permit holder complies with all requirementsTable of ~~the concession;~~Contents

·

current concession holders when necessary to meet increased demand so long as (i) a new airport is necessary to increase existing capacity, (ii) the operation of both airports by a single concession holder is more efficient than other options, and (iii) the concession holder complies with all requirements of the concession;

·

current concession holders when it is in the public interest for their airport to be relocated;

·

entities in the federal public administration; and

·

commercial entities in which local or municipal governments have a majority equity interest if the entities’ corporate purpose is to manage, operate, develop and/or construct airports.

Environmental Matters

·current concession holders when necessary to meet increased demand so long as (i) a new airport is necessary to increase existing capacity, (ii) the operation of both airports by a single concession holder is more efficient than other options, and (iii) the concession holder complies with all requirements of the concession;

·~~current concession holders when it is in the public interest for their airport to be relocated;~~

·~~entities in the federal public administration; and~~

·~~commercial entities in which local or municipal governments have a majority equity interest if the entities’ corporate purpose is to manage, operate, develop and/or construct airports.~~

~~Environmental Matters~~

Regulation

Our operations are subject to Mexican federal ~~state~~ and ~~municipal~~state laws and regulations relating to the protection of the environment. The major federal environmental laws applicable to our operations are: (i) the General Law of Ecological Equilibrium and Environmental Protection (Ley General del Equilibrio Ecológico y la Protección al Ambiente) or the “General Environmental Law,” and its regulations, which are administered by the Ministry of the Environment and Natural Resources and enforced by the Ministry’s enforcement branch, the Federal Attorney for Environmental Protection; (ii) the General Law for the Prevention and Integral Management of Waste (Ley General para la

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impose a variety of sanctions. Companies in Mexico are required to obtain proper authorizations, licenses, concessions or permits from competent environmental authorities for the performance of activities that may have an impact on the environment or that may constitute a source of contamination. Companies in Mexico are also required to comply with a variety of reporting obligations that include, among others, providing the Federal Attorney for Environmental Protection and the National Waters Commission, as applicable, with periodic reports regarding compliance with various environmental laws.

Prior to the opening of Mexico’s airports to private investment, the Federal Attorney for Environmental Protection required that environmental audits be performed at each of our airports. Based on the results of these audits, the Federal Attorney for Environmental Protection issued recommendations for improvements and corrective actions to be taken at each of our airports. In connection with the transfer of the management of our airports from our predecessor, we entered into environmental

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Liability for Environmental Noncompliance

The legal framework of environmental liability applicable to our operations is generally outlined above. Under the terms of our concessions, the Mexican government has agreed to indemnify us for any environmental liabilities arising prior to November 1, 1998, and for any failure by the Mexican Airport and Auxiliary Services agency prior to November 1, 1998, to comply with applicable environmental laws and with its agreements with Mexican environmental authorities. We believe that we are entitled to indemnification for any liabilities related to actions that our predecessor was required to perform or refrain from performing under applicable environmental laws and under their agreements with environmental authorities, though this may change in the future.

The level of environmental regulation in Mexico has significantly increased in recent years, and the enforcement of environmental laws is becoming substantially more stringent. We expect this trend to

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Name of Company	Jurisdiction of Establishment	Percentage Owned	Description
OMA Logística, S.A. de C.V.	Mexico	100	Develops and operates commercial areas in our concessionaries. Holds 85% of the shares of the investment project to develop and operate a Hilton Garden Inn and commercial areas at the Monterrey airport. Grupo Hotelero Santa Fe ~~S. de R.L. de C.V.,~~ owns the remaining 15%. Holds 51% of the shares of OMA VYNMSA Aero Industrial Park, S.A. de C.V., an investment project to develop, operate and build an industrial park at the Monterrey airport. VYNMSA ~~Desarrollo Inmobiliario, S.A. de C.V.,~~ owns the remaining 49%.

Servicios Aero Especializados del Centro Norte, S.A. de C.V.	Mexico	100	Provider of administrative and other services at certain of our airports.

OMA VYNMSA Aero Industrial Park, S.A. de C.V.	Mexico	51	Entity created to build and operate an industrial park at the Monterrey airport.

Consorcio Hotelero Aeropuerto Monterrey, S.A.P.I. de C.V.	Mexico	85	Holds a 20-year lease agreement with the Monterrey airport to develop and operate a 134-room hotel at the Monterrey airport under the brand Hilton Garden Inn.

Servicios Hoteleros Aeropuerto Monterrey, S.A. de C.V.	Mexico	85	Provider of administrative and other services to Consorcio Hotelero Aeropuerto Monterrey, S.A.P.I. de C.V.

PROPERTY, PLANT AND EQUIPMENT

Pursuant to the Mexican National Assets Law, all real estate and fixtures in our airports are owned by the Mexican government. Each of our concessions is scheduled to terminate in 2048, although each concession may be extended one or more times for up to an aggregate of an additional 50 years. The option to extend a concession is subject to our acceptance of any changes to such concession that may be imposed by the Ministry of Communications and Transportation and our compliance with the terms of our current concessions. Upon expiration of our concessions, these assets automatically revert to the

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acts and a U.S.$1.0 billion policy covering personal and property damages to third parties. We also carry a U.S.$200.0 million insurance policy covering damage to our assets and infrastructure.

Item 4A.Unresolved Staff Comments

None.

Item 5.Operating and Financial Review and Prospects

The following discussion should be read in conjunction with, and is qualified in its entirety by reference to, our consolidated financial statements and the notes to those consolidated financial statements. It does not include all of the information included in our consolidated financial statements. You should read our consolidated financial statements to gain a better understanding of our business and our historical results of operations.

Our consolidated financial statements included in this annual report are prepared in accordance with IFRS, as issued by the IASB.

Overview

We hold concessions to operate, maintain and develop 13 airports in Mexico, many of which are located in the northern and central regions of the country, pursuant to concessions granted by the Mexican government. The substantial majority of our revenues are derived from providing aeronautical services, which generally are related to the use of our airport facilities by airlines and passengers. For example, approximately ~~67.9%~~61.0% of our total revenues in ~~2014~~2017 were earned from aeronautical services and approximately ~~74.0%~~74.9% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues in ~~2014~~2017 were earned from aeronautical services. Changes in our revenues from aeronautical services are principally driven by the passenger and cargo volume at our airports. Our revenues from aeronautical services are also affected by the maximum rates we are allowed to charge under the price regulation system established by the Ministry of Communications and Transportation and the specific prices that we negotiate with airlines for the provision of aeronautical services. The maximum rate system of price regulation that applies to our aeronautical revenues is linked to the traffic volume (measured in workload units) at each airport; thus, increases in passenger and cargo volume generally permit greater revenues from aeronautical services. In evaluating our aeronautical revenues, we focus principally on workload units, which measure volume, and aeronautical revenues per workload unit, which measures the contribution to aeronautical revenues from each workload unit.

We also derive revenues from ~~non-aeronautical~~non‑aeronautical activities, which principally relate to the commercial activities carried out at our airports, such as the operation of parking facilities, advertising and the leasing of space to restaurants and retailers. We also derive ~~non-aeronautical~~non‑aeronautical revenues from diversification activities, such as hotel services, air cargo logistics services and real estate services; and

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Recent Developments

~~Amendment to the Mexican Airport Law~~Appointment of new Chief Financial Officer

On ~~January 26, 2015,~~April 3, 2018, we appointed Ruffo Pérez Pliego to be Chief Financial Officer, effective as of April 3, 2018. Porfirio González, our Chief Executive Officer, had exercised the responsibilities of the Chief Financial Officer on an ~~amendment~~interim basis since November 16, 2017. For more information about Mr. Pérez Pliego’s prior experience, see “Item 6. Executive Officers.”

Inclusion in Dow Jones Sustainability Index for Emerging Markets

We were selected to be included in the ~~Mexican Airport Law was published and enacted. Among other matters, the amendment includes provisions that intend to create a competitive market~~Dow Jones Sustainability Index (DJSI) for Emerging Markets for the ~~suppliers~~second consecutive year. This index represents the highest standard for corporate sustainability based on economic, environmental, social and corporate governance criteria. This is the second time that we have been selected for inclusion in the DJSI, from among 850 companies in developed economies and emerging markets. Only four companies in Mexico are included in the index, of ~~complementary services. To this end,~~which only OMA is in the amendment establishes that a concession holder may not limit the number of providers of complementary services in its airport, except in instances in which space, efficiency and/or safety warrant such a limitation. If a concession holder denies entry to any complementary service provider, that service provider may file a complaint before the Ministry of Communicationstransportation sector. The selection represents an important achievement for us and ~~Transportation.~~our partners, shareholders and employees.

~~Hotel at Monterrey Airport~~We carry out our operations in accordance with corporate governance best practices, with the vision and commitment to respect and be mindful of the environment, and also by promoting the social well-being of our stakeholders through projects supported by our Sustainability Policy.

The DJSI Global index identifies companies that are leaders in sustainability practices based on the analysis of RobecoSAM and the S&P Dow Jones index methodology.

In ~~July 2013,~~addition, as of October 2017, we ~~through our subsidiary OMA Logística, S.A. de C.V.~~were included in the newly-launched Dow Jones Sustainability Index- MILA, among 148 companies in México, Perú, ~~signed an agreement with Grupo Hotelero Santa Fe, S. de R.L. de C.V., a Mexican hospitality investment~~Chile and ~~operating company, to develop and operate a 134-room hotel at~~Colombia. Only two Companies in México are included in the ~~Monterrey airport under the Hilton Garden Inn brand through an investment~~index, of which only OMA ~~Logística, S.A. de C.V., holds 85% and Grupo Hotelero Santa Fe, S. de R.L. de C.V. holds 15%, to develop~~is in the ~~project.~~transportation sector. The ~~Hilton Garden Inn at the Monterrey airport will include a restaurant and bar, business centers and a fitness center and will be easily accessible from Terminals A and B~~current DJSI-MILA is valid for one year.

Launch of the ~~airport. Construction~~OMA Foundation

On October 12, 2017, we launched the “OMA Foundation” as a platform to promote and consolidate community projects, working with civil society organizations and social entrepreneurs. The OMA Foundation supports programs focused on developing technical skills, improving physical education infrastructure and equipment, and providing scholarships that help Mexican youth stay in school and develop professional skills.

During 2017, the OMA Foundation started to implement community projects in Pesquería, Nuevo Leon and Aldama, Chihuahua, in alliance with the non-profit organizations Jóvenes Constructores de la Comunidad A.C. (Young Community Builders A.C.) and Servicios a la Juventud A.C. (Youth Services A.C.).

Through the OMA Foundation, we will continue to support the development of projects that align social investment with our business strategy, by channeling resources and joining forces with initiatives that contribute to society.

Temporary Suspension of Operations at NH Collection Hotel T2

As a result of the ~~hotel began~~earthquake on September 19, 2017, which resulted in ~~January 2014,~~loss of electricity and other utilities, the NH Collection Hotel in Terminal 2 of the Mexico City International Airport temporarily suspended operations until September 25, 2017. The hotel’s infrastructure was not affected by the earthquake, and the hotel ~~is expected to start operations during the second quarter of 2015.~~has operated normally since reopening.

~~Industrial Park at Monterrey Airport~~

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In November 2012, we, through our subsidiary OMA Logística, S.A. de C.V., signed a strategic alliance agreement with VYNMSA, to build and operate an industrial park at the Monterrey airport through the company OMA VYNMSA Aero Industrial Park, S.A. de C.V. (in which OMA Logística, S.A. de C.V., has a 51% ownership interest and VYNMSA Desarrollo Inmobiliario, S.A. de C.V., has a 49% ownership interest). As part of this strategic alliance, 32.4 hectares (0.13 square miles) within the Monterrey airport’s perimeter are being developed in phases for use as an industrial park. The first phase of the industrial park included urbanization works and the construction of a 5,000-square-meter (53,820-square-foot) warehouse.

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Inclusion in The Sustainability Yearbook 2018

Since 2004, this publication has recognized leading companies in the sustainability area around the world, by industry, in accordance with criteria set by RobecoSAM. In 2018, OMA was one of only two Mexican companies included in this book, and one of 15 companies globally in the transport sector recognized for their sustainability activities.

Rescission of advertising contract

Effective December 3, 2017, we terminated our lease and advertising services agreement with SSL, the company that provided most of the advertising in the airports we operate. We initiated legal proceedings against SSL to recover funds it owes us for breaching certain of its obligations under the contract. As of December 3, 2017 the outstanding balance owned by SSL was Ps.45,527 thousand. We are in the process of selecting the new company that will provide us with the advertising service for our 13 airports; however, we expect that our revenues from advertising will be affected during this time.

Operating Results

Certain U.S. dollar amounts have been translated from Mexican pesos for convenience purposes at an exchange rate of ~~Ps. 14.7348~~Ps.19.7354 per U.S.$1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, ~~2014.~~2017.

Passenger and Cargo Volumes

In ~~2014,~~2017, approximately ~~86.4%~~87.6% of the terminal passengers using our airports were domestic. Domestic traffic increased by ~~10.8%~~5.1% and international traffic increased by ~~9.3%~~2.8% as compared to ~~2013.~~2016. In addition, of the international passengers traveling through our airports, a majority has historically traveled on flights originating in or departing to the United States. Accordingly, our results of operations are influenced strongly by changes to Mexican economic conditions and to a lesser extent influenced by U.S. economic and other conditions, particularly trends and events affecting leisure travel and consumer spending. For instance, in 2013, airlines began receiving new aircrafts, which increased flight capacities and, thereby, passenger traffic. Additionally, in 2014, a new Mexican airline called TAR began operations in several of our airports, which has increased passenger traffic volumes by ~~73,081 passengers.~~

381,377 passengers as of December 31, 2017.

Many factors affecting our passenger traffic volume and the mix of passenger traffic in our airports are beyond our control.

In ~~2012, 2013~~2015, 2016 and ~~2014,~~2017, our 13 airports handled approximately ~~89,860, 85,532~~92,776, 92,212 and ~~86,372~~98,634 metric tons of cargo, respectively. The increase in ~~air cargo transportation in 2014~~2017 was due to ana 10.4% increase in ~~ground~~ cargo ~~transportation.~~transportation at the Monterrey airport and a 3.6% increase in cargo transportation at the San Luis Potosí airport. Increases in our cargo volume are beneficial to us for purposes of the ~~maximum-rate~~maximum‑rate calculations, as cargo increases the number of our workload units.

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The following table sets forth certain operating and financial data relating to our revenues and passenger and cargo volumes for the periods indicated:

For the Year Ended December 31,

2012

2013

2014

Domestic terminal passengers(1)

10,769.2

11,459.25

12,691.56

International terminal passengers(1)

1,825.1

1,833.22

2,003.37

Total terminal passengers(1)

12,594.4

13,292.47

14,694.94

Cargo units(1)

898.6

855.32

863.72

Total workload units(1)

13,493.0

14,147.79

15,558.66

Change in total terminal passengers(2)

7.0%

5.5%

10.6%

Change in workload units(2)

6.6%

4.9%

10.0%

Aeronautical revenues(3)

2,130,662

2,268,869

2,532,666

Change in aeronautical revenues(2)

13.9%

6.5%

11.6%

Aeronautical revenues per workload unit

157.9

160.4

162.8

Change in aeronautical revenues per workload unit(1)(2)

6.9%

1.6%

1.5%

Non-aeronautical revenues(3)

688,957

796,501

889,694

Change in non-aeronautical revenues(2)

17.0%

15.6%

11.7%

Non-aeronautical revenues per terminal passenger(4)

54.7

59.9

60.5

Change in non-aeronautical revenues per terminal passenger(2)

9.4%

9.5%

1.00%

Non-aeronautical revenues per terminal passenger, excluding hotel services(4)(5)

42.1

46.6

47.2

Change in non-aeronautical revenues per terminal passenger, excluding hotel services(2)(5)

11.0%

10.7%

1.28%

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	For the Year Ended December 31,
	2015		2016		2017
Domestic terminal passengers(1)	14,551.00		16,387.95		17,219.95
International terminal passengers(1)	2,371.14		2,375.69		2,442.06
Total terminal passengers(1)	16,922.14		18,763.64		19,662.01
Cargo units(1)	927.76		922.12		986.34
Total workload units(1)	17,849.90		19,685.76		20,648.35
Change in total terminal passengers(2)	15.2	%	10.9	%	4.8	%
Change in workload units(2)	14.7	%	10.3	%	4.9	%

Aeronautical revenues(3)	3,033,130		3,872,735		4,347,031
Change in aeronautical revenues(2)	19.8	%	27.7	%	12.2	%
Aeronautical revenues per workload unit	169.9		196.7		210.5
Change in aeronautical revenues per workload unit(1)(2)	4.4	%	15.8	%	7.0	%

Non-aeronautical revenues(3)	1,111,541		1,332,762		1,456,338
Change in non-aeronautical revenues(2)	24.9	%	19.9	%	9.3	%
Non-aeronautical revenues per terminal passenger(4)	65.7		71.0		74.1
Change in non-aeronautical revenues per terminal passenger(2)	8.6	%	8.1	%	4.3	%
Non-aeronautical revenues per terminal passenger, excluding hotel services(4)(5)	52.1		54.4		56.7
Change in non-aeronautical revenues per terminal passenger, excluding hotel services(2)(5)	10.4	%	4.4	%	4.2	%

(1)

In thousands. One cargo unit is equivalent to 100 kilograms (220 pounds) of cargo. Under the regulation applicable to our aeronautical revenues, one workload unit is equivalent to one terminal passenger or 100 kilograms (220 pounds) of cargo.

~~(1)~~In thousands. One cargo unit is equivalent to 100 kilograms (220 pounds) of cargo. Under the regulation applicable to our aeronautical revenues, one workload unit is equivalent to one terminal passenger or 100 kilograms (220 pounds) of cargo.

~~(2)In each case, as compared to previous period.~~

~~(3)In thousands of pesos.~~

~~(4)In pesos.~~

~~(5)Figures presented for comparison purposes, as revenues from hotel services do not increase as a function of terminal passengers.~~

(2)

In each case, as compared to previous period.

(3)

In thousands of pesos.

(4)

In pesos.

(5)

Figures presented for comparison purposes, as revenues from hotel services do not increase as a function of terminal passengers.

In ~~2014,~~2017, we served ~~14.7~~19.7 million terminal passengers, of which ~~12.7~~17.2 million were domestic and ~~2.0~~2.5 million were international, and approximately ~~0.2~~0.1 million were transit passengers. The increase in passengers in ~~2014~~2017 was principally due to an increase in the number of routes at several of our airports.

Classification of Revenues

We classify our revenues into three categories: revenues from aeronautical services, revenues from ~~non-aeronautical~~non‑aeronautical services and revenues from construction services. Historically, a substantial majority of our total revenues have been derived from aeronautical services. For example, in ~~2014, 67.9%~~2017, 61.0% of our total revenues were derived from aeronautical services, and the remainder of our revenues was derived from ~~non-aeronautical~~non‑aeronautical services and construction services. Aeronautical services represented ~~74.0%~~74.9% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

Our revenues from aeronautical services are subject to price regulation under the applicable maximum rate at each of our airports and principally consist of passenger charges, aircraft landing and parking charges, airport security charges, passenger walkway charges, the leasing of space in our airports to airlines (other than first class/VIP lounges and other similar activities not directly related to essential airport operations) and complementary services (i.e., fees from handling and catering providers, permanent ground transportation operators and access fees from fuel providers at our airports).

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Our revenues from ~~non-aeronautical~~non‑aeronautical services are not subject to price regulation under our maximum rates and generally includes revenues earned from: (i) commercial activities, such as car parking (which may be subject to certain municipal regulations, but not to our maximum rates), rental and royalty payments from third parties operating stores and providing commercial services at our airports, such as advertising, retail operators, food and beverage providers, car rental companies, ~~time-share~~time‑share sales and promotions service providers, ~~duty-free~~duty‑free operators and fees collected from other miscellaneous sources, such as financial services providers, telecommunications providers and other passenger services providers; (ii) diversification activities, which include revenues earned by the operation of the Terminal 2 NH Collection Hotel of Mexico City International Airport, OMA Carga operations (air cargo logistics services), the Hilton Garden Inn hotel at the Monterrey airport and real estate services; and (iii) complementary activities, which principally include our checked ~~baggage-screening~~baggage‑screening services, the leasing of space to airlines and complementary service providers for first class/VIP lounges and other activities not directly related to essential airport operations, as well as fees for access to federal zones.

We recognize revenues from construction services derived from the improvements made to airports that are included in our master development programs. We recognize revenues and costs for improvements to airport concessions that are included in the airport’s master development program. Construction service revenues related to the airport concession are determined based on negotiations between us and the Ministry of Communication and Transportation (recognized according to the ~~percentage-of-completion~~percentage‑of‑completion method), as we construct or improve the airports based on the master development programs. ~~The Ministry of Communication and Transportation grants us the right to obtain revenues from the airport services rendered.~~

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The following table sets forth our revenues from aeronautical services for the periods indicated:


	For the Year Ended December 31,						For the Year Ended December 31,
	2012		2013		2014		2015			2016			2017
	Amount	%	Amount	%	Amount	%	Amount	%		Amount	%		Amount	%
	(in thousands of pesos, except percentages)						(in thousands of pesos, except percentages)
Aeronautical revenues:
Domestic passenger charges	1,355,923	63.6%	1,441,037	63.5%	1,613,023	63.7%	1,863,875	61.5	%	2,477,711	64.0	%	2,801,751	64.5	%
International passenger charges	395,947	18.6%	412,817	18.2%	455,244	18.0%	632,834	20.9	%	810,519	20.9	%	921,539	21.2	%
Landing charges	109,045	5.1%	116,082	5.1%	130,614	5.2%	150,739	5.0	%	167,298	4.3	%	178,638	4.1	%
Aircraft parking charges	95,105	4.5%	97,997	4.3%	114,950	4.5%
Airport security charges	24,795	1.1%	27,123	1.2%	30,430	1.2%
Passenger walkway charges	24,378	1.2%	25,845	1.1%	29,202	1.2%
Other(1)	125,470	5.9%	147,968	6.5%	159,203	6.2%
Platform for embarking and disembarking							107,465	3.5	%	118,004	3.0	%	119,123	2.8	%
Aircraft parking charges on extended stay or overnight							30,284	1.0	%	33,242	0.9	%	31,923	0.7	%
Domestic and international passenger and carry-on baggage check							36,433	1.2	%	37,925	1.0	%	48,762	1.1	%
Aerocars and jetways							38,983	1.3	%	40,715	1.1	%	44,234	1.0	%
Other airport services, leases and regulated access(1)							172,516	5.6	%	187,321	4.8	%	201,061	4.6	%
Total aeronautical revenues	2,130,663	100.0%	2,268,869	100.0%	2,532,666	100.0%	3,033,130	100	%	3,872,735	100	%	4,347,031	100	%

(1)

Includes regulated access fees, leasing of space to airlines for their operations and leasing of space in the airside to cargo handling agents and shippers.

~~(1)Includes regulated access fees, leasing of space to airlines for their operations and leasing of space in the airside to cargo handling agents and shippers.~~

Under the regulatory system applicable to our aeronautical revenues, we can set the specific price for each category of aeronautical services, other than complementary services and the leasing of space to

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Non-Aeronautical Revenues

~~Non-aeronautical~~Non‑aeronautical services historically have generated a significantly smaller portion of our total revenues as compared to aeronautical services. The contribution to our total revenues from ~~non-aeronautical~~non‑aeronautical services was ~~23.9%~~20.4% in ~~2014.~~2017. Our ~~non-aeronautical~~non‑aeronautical revenues per terminal passenger increased from ~~Ps. 59.9~~Ps.71.0 in ~~2013~~2016 to ~~Ps. 60.5~~Ps.74.1 in ~~2014,~~2017 due primarily to an increase in and improvement of diversification and commercial activities in all of our airports, ~~especially~~specially our revenues from ~~the NH Terminal 2 Hotel, parking~~hotel services, OMA Carga, baggage screening services, retail food and ~~baggage-screening services.~~beverage and car rental. Our ~~non-aeronautical~~non‑aeronautical revenues in ~~2014~~2017 represented ~~26.0%~~25.1% of the sum of our aeronautical and ~~non-aeronautical~~non‑aeronautical revenues, and our revenues from commercial activities per terminal passenger increased from ~~Ps. 30.6~~Ps.34.7 in ~~2013~~2016 to ~~Ps. 30.8~~Ps.35.4 in ~~2014,~~2017, due primarily to an increase in and improvement of commercial activities in all of our airports, ~~especially~~specially our revenues from ~~parking,~~car rental, food and beverage operations, retail and ~~local advertising.~~

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~~(3)Includes the leasing of space in our airports to airlines and complementary service providers (for first class/VIP lounges and other similar non-essential activities).~~

~~(4)Recovery of costs consists of utility and maintenance charges that are transferred to airlines and other tenants in our airports.~~

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(4)

Other revenues consist mainly of recovery of costs for utility, marketing, security and maintenance charges that are transferred to airlines and other tenants in our airports.

(5)

Other complementary revenues consist of the recovery of costs for utility, marketing, security and maintenance charges that are transferred to airlines and other tenants in our airports, to revenues from passengers’ self-service kiosks (Common-Use Self Service (CUSS)), and to revenues from shared terminal equipment for the airlines’ use located in terminal gates (Common-Use Terminal Equipment (CUTE)).

The majority of our ~~non-aeronautical~~non‑aeronautical revenues are derived from commercial activities, which represented ~~50.9%~~47.9% of our ~~non-aeronautical~~non‑aeronautical revenues in ~~2014.~~2017. Commercial activities include car parking charges (which may be subject to government regulation, but not to our maximum rates), rental and royalty payments from third parties operating retail stores and providing commercial services at our airports, such as advertising, food and beverage providers, car rentals, ~~time-share~~time‑share sales and promotions services, ~~duty-free~~duty‑free stores and fees collected from other miscellaneous sources, such as telecommunications providers, financial services providers and other passenger services providers.

On an individual basis, our most important source of ~~non-aeronautical~~non‑aeronautical revenues is hotel services provided by both Terminal 2 NH Collection Hotel ofat the Mexico City International Airport and the Hilton Garden Inn Hotel at the Monterrey airport, which represented ~~22.0%~~23.4% of our ~~non-aeronautical~~non‑aeronautical revenues in ~~2014~~2017 and is part of our diversification activities. Other than hotel services, diversification activities include OMA Carga operations (air and ground cargo logistics services) and real estate services.

Complementary activities represented ~~16.7%~~16.1% of our ~~non-aeronautical~~non‑aeronautical revenues in ~~2014.~~2017. These activities ~~principally~~primarily include ~~baggage-screening~~baggage‑screening services, the leasing of space to airlines and complementary service providers for first class/VIP lounges and other activities not directly related to essential airport operations; as well as fees for access to federal zones.

94

Operating Costs

Our operating costs have been, and we believe that they will continue to be, funded entirely from our results of operations. The following table sets forth our operating costs and certain other related information for the periods indicated:


	For the Year Ended December 31,					For the Year Ended December 31,
	2012	2013		2014		2015	2016			2017
	Amount	Amount	% Change	Amount	% Change	Amount	Amount	% Change		Amount	% Change
	(in thousands of pesos, except percentages)					(in thousands of pesos, except percentages)
Operating Costs:
Cost of services:						��
Employee costs	157,619	168,549	6.9%	174,509	3.5%
Wages and salaries						191,660	203,912	6.4	%	219,890	7.8	%
Maintenance	91,817	136,400	48.6%	135,957	(0.3%)	147,923	157,740	6.6	%	184,246	16.8	%
Safety, security and insurance	133,580	139,034	4.1%	142,013	2.1%
Security and insurance						153,011	167,678	9.6	%	176,197	5.1	%
Utilities (electricity, cleaning and water)	143,306	139,316	(2.8%)	142,066	2.0%	135,825	158,956	17.0	%	189,238	19.1	%
Real estate leases	26,377	31,755	20.4%	35,294	11.1%
Building lease						38,265	41,031	7.2	%	45,181	10.1	%
Allowance for doubtful accounts	(6,689)	(3,727)	(44.3%)	1,296	(134.8%)	(1,103)	749	N/A		(10,561)	N/A
Hotel service costs	28,220	25,658	(9.1%)	34,091	32.9%
Statutory employee profit sharing	2,790	1,424	(49.0%)	1,226	(13.9%)
Other	79,197	86,920	9.8%	106,494	22.5%
Cost of hotel service						42,742	58,607	37.1	%	65,034	11.0	%
Employee statutory profit sharing						2,411	2,121	(12.0)	%	1,568	(26.1)	%
Equipment lease, fees and other						125,399	109,347	(12.8)	%	110,272	0.8	%
Total cost of services	656,217	725,329	10.5%	772,946	6.6%	836,133	900,141	7.7	%	981,065	9.0	%
Major maintenance provision	164,208	263,167	60.3%	179,932	(31.6%)	174,293	262,871	50.8	%	291,038	10.7	%
Construction costs	321,718	352,688	9.6%	307,327	(12.9%)
Cost of construction						347,988	344,772	(0.9)	%	1,326,458	284.7	%
Administrative expenses	457,749	501,233	9.5%	536,034	6.9%	558,222	642,345	15.1	%	587,917	(8.5)	%
Concession taxes	137,028	148,159	8.1%	171,670	15.9%
Right to use airport facilities						209,771	244,215	16.4	%	271,331	11.1	%
Technical assistance fees	67,365	66,643	(1.1%)	82,461	23.7%	97,818	117,987	20.6	%	135,074	14.5	%
Depreciation and amortization(1)	186,803	201,226	7.7%	223,982	11.3%	238,809	276,634	15.8	%	299,205	8.2	%
Other income, net	(9,924)	(49,782)	401.6%	(13,654)	(72.6%)	(6,930)	(22,250)	221.1	%	(1,380)	(93.8)	%
Total operating costs	1,981,164	2,208,663	11.5%	2,260,698	2.4%	2,456,104	2,766,715	12.6	%	3,890,708	40.6	%

(1)

Depreciation reflects depreciation of fixed assets, and amortization reflects amortization of our concessions and rights to use airport facilities.

~~105~~

95

estimates of the amount and timing of cash flows is a reassessment of the provision and charged or credited as an operating item within our consolidated statements of income and other ~~costs, which increased from Ps. 86,920 thousand~~comprehensive income.

Every quarter, the major maintenance provision is revised to update the amount that has been provided for in ~~2013~~order to ~~Ps. 106,494 thousand in 2014~~keep the provision as accurate as possible. The provision could increase or decrease, as a result of certain events, such as, on the one hand, a contingency in an ~~increase~~airport that requires immediate major maintenance, other maintenance that has been delayed or, on the other hand, an asset that does not need maintenance, in ~~maintenance cost under the master development program.~~which case resources can be better used for other activities.

Construction Costs

We invest in additions and upgrades to our concession assets in accordance with our master development programs. As our construction costs are equal to our revenues from construction services, they do not have a cash impact on our results of operations.

Administrative Expenses

Our administrative expenses consist primarily of personnel expenses, fees and expenses paid to consultants and other providers of professional services and other administrative overhead expenses.

~~Solidarity Fees~~Concession Tax

Beginning November 1, 1998, we became subject to Article 232‑A of the Mexican Federal Duties Law, which requires that the holders of concessions pay a tax for the use of state‑owned assets. This tax is currently equal to 5% of the gross annual revenues of each concession holder obtained from the use of public domain assets pursuant to the terms of its concession. The concession tax may be revised at any time by the Mexican government, and this tax may increase in the future. If the Mexican government increases the concession tax, we are entitled to request an increase in its maximum rates from the Ministry of Communications and Transportation; however, the Ministry of Communications and Transportation may not honor such requests in the future.

Technical Assistance Fee

Under the Technical Assistance Agreement, SETA provides management and consulting services and transfers technical assistance and technological and industry knowledge and experience to us in exchange for a fee. The technical assistance fee for each of 2001 and 2002 was fixed at U.S.$5.0 million (adjusted annually for U.S. inflation). For the remainder of the original contract term, the fee was equal to the greater of U.S.$3.0 million adjusted annually for inflation (measured by the U.S. consumer price index) or 5% of our EBITDA. Pursuant to the extension and amendment to the Technical Assistance Agreement signed on May 13, 2015, as of June 14, 2015, the fee was reduced to the greater of U.S.$3,478,000 (updated annually according to the U.S. consumer price index) and 4% of our EBITDA for the first three years of the extension and 3% of our EBITDA for the last two years of the extension.

Depreciation and Amortization

Our depreciation and amortization expenses primarily reflect the amortization of our investment in our 13 concessions. In 2017, our depreciation and amortization expenses increased by 8.2%, as compared to 2016, primarily due to an increase in investment improvements to concession assets during 2017.

The value of our concessions was determined in June 2000, when SETA won the bid to acquire Series BB shares currently representing 12.6% of our capital stock, based on the value assigned by the independent company INGENIAL. In addition, we depreciate the value of certain fixed assets that we acquire or build at our airports pursuant to the investment requirements under our master development programs.

96

Solidarity Fees

We and our subsidiaries have entered into ~~inter-company~~inter‑company agreements under which we provide services and make payments among us and our subsidiaries. The payments under these agreements affect the revenues, operating costs and income at our individual subsidiaries but not our consolidated results. Under the intercompany agreements, our parent company Grupo Aeroportuario del Centro Norte, S.A.B. de C.V., or GACN, and our administrative services subsidiaries provide certain services and guarantees to our airport operating subsidiaries (which may include payments to certain of our airport operating subsidiaries), in exchange for which our airport operating subsidiaries make payments to GACN and the service subsidiaries. Each of our airports ~~has~~have entered into a “Solidarity Agreement” with our parent company, pursuant to which each of our airport operating subsidiaries pays a solidarity fee to GACN in exchange for which GACN guarantees the ongoing viability of that subsidiary’s concession, including, in the case of certain subsidiaries, by making payments to those subsidiaries to ensure that they have the resources to comply with their master development programs and other regulatory obligations. As described under “Item 4. Information on the Company—Regulatory Framework—General Obligations of Concession Holders,” in the event of a breach of one concession, the Ministry of Communications and Transportation is entitled to revoke all of the concessions held by our airport operating subsidiaries. Therefore, our airport operating subsidiaries that generate higher revenues pay higher solidarity fees to our parent company to ensure the continued viability of the concessions held by our airport operating subsidiaries that generate lower revenues. Amounts paid pursuant to the Solidarity Agreements are determined in accordance with Mexican transfer pricing regulations established under the Mexican Income Tax Law and are in line with a transfer pricing study that we commission annually from an independent third party. The intercompany agreements also include agreements to provide other routine services, including negotiating regulated tariffs and interfacing with regulators, leasing of commercial real

~~106~~

97

For the Year Ended December 31,

2013

2014

Depreciation of the Mexican peso as computed to the U.S. dollar(1)

1.1%

12.6%

Mexican inflation rate(2)

4.0%

4.1%

U.S. inflation rate(3)

1.5%

0.8%

Increase in Mexican GDP(4)

1.1%

2.6%


	For the Year Ended December 31,
	2016		2017
Depreciation of the Mexican peso as computed to the U.S. dollar(1)	19.9	%	(4.7)	%
Mexican inflation rate(2)	3.4	%	6.8	%
U.S. inflation rate(3)	2.1	%	2.1	%
Increase in Mexican GDP(4)	2.3	%	2.0	%

(1)Based on changes in the noon buying rate for Mexican pesos, as published by the U.S. Federal Reserve at the end of each period, which were as follows: ~~Ps. 12.96~~Ps.20.62 per U.S.$1.00 as of December 31, ~~2012, Ps. 13.10~~2016 and Ps.19.64 per U.S.$1.00 as of December 31, ~~2013 and Ps. 14.75 per U.S.$ 1.00 as of December 31, 2014.~~2017.

(2)Based on changes in the Mexican Consumer Price Index from the previous period, as reported by the Mexican Central Bank. The ~~year-end~~year‑end Mexican Consumer Price Index was ~~111.508~~122.515 in ~~2013~~2016 and ~~116.059~~130.813 in ~~2014.~~2017.

(3)Based on changes in the Consumer Price Index for all urban consumers before seasonal adjustment, as reported by the U.S. Department of Labor, Bureau of Labor Statistics.

(4)In real terms, as reported by the Mexican Central Bank.

~~Due to the relatively low rate of inflation in~~ ~~Mexico in recent years, inflation did not have a material impact on our revenues or results of operations during 2013 and 2014. However, the~~The general condition of the Mexican economy, the devaluation of the peso as compared to the U.S. dollar, inflation and high interest rates have in the past adversely affected, and may in the future adversely affect, the following:

Passenger charges. Passenger charges for international passengers are currently denominated in U.S. dollars (although invoiced and paid in Mexican pesos), while passenger charges for domestic passengers are denominated in pesos.

~~108~~

98

Operating Results by Segment

The following table sets forth our results of operations for the periods indicated for each of our airports, our hotel services and our ~~hotel.~~industrial services.


	For the Year Ended December 31,			For the Year Ended December 31,
	2012	2013	2014	2015		2016		2017
	(in thousands of pesos, except percentages)			(in thousands of pesos, except percentages)
*Metropolitan Destination*
Monterrey:
Revenues:
Aeronautical services	989,976	1,046,621	1,167,807	1,443,311		1,799,823		2,046,097
Non-aeronautical services	292,169	320,774	360,228	484,111		560,016		547,586
Construction services	72,331	74,722	36,618	70,999		97,631		367,214
Total revenues	1,354,476	1,442,117	1,564,653	1,998,421		2,457,470		2,960,897
Operating costs:
Costs and administrative expenses	230,395	245,215	267,939	310,601		343,052		365,806
Major maintenance provision	55,770	56,249	24,330	24,327		64,794		72,284
Construction costs	72,331	74,722	36,618	70,999		97,631		367,214
Depreciation and amortization	65,864	71,513	75,036	76,357		76,016		84,142
Solidarity fee	723,974	771,663	890,327	1,150,670		1,402,061		1,552,711
Total operating costs	1,148,334	1,219,363	1,294,250	1,632,954		1,983,554		2,442,157
Income from operations	206,142	222,754	270,403	365,467		473,916		518,740
Operating margin(1)	15.2%	15.4%	17.3%	18.3	%	19.3	%	17.5	%

*Tourist Destinations*
Acapulco:
Revenues:
Aeronautical services	99,498	108,420	117,573
Non-aeronautical services	18,725	20,266	22,779
Construction services	19,665	43,861	48,313
Total revenues	137,888	172,547	188,665
Operating costs:
Costs and administrative expenses	50,720	42,776	35,005
Major maintenance provision	10,288	17,499	3,477
Construction costs	19,665	43,861	48,313
Depreciation and amortization	13,909	14,845	16,601
Solidarity fee	22,996	24,688	40,017
Total operating costs	117,578	143,669	143,413
Income from operations	20,310	28,878	45,252
Operating margin(1)	14.7%	16.7%	24.0%

~~109~~

99


	For the Year Ended December 31,
	2015		2016		2017
	(in thousands of pesos, except percentages)
Tourist Destinations
Acapulco:
Revenues:
Aeronautical services	138,309		149,214		158,448
Non-aeronautical services	27,864		30,446		34,089
Construction services	81,869		76,772		372,253
Total revenues	248,042		256,432		564,790
Operating costs:
Costs and administrative expenses	56,160		37,435		60,628
Major maintenance provision	21,621		2,934		8,476
Construction costs	81,869		76,772		372,253
Depreciation and amortization	18,737		19,466		20,105
Solidarity fee	48,326		80,364		64,795
Total operating costs	226,713		216,971		526,257
Income from operations	21,329		39,461		38,533
Operating margin(1)	8.6	%	15.4	%	6.8	%

Mazatlán:
Revenues:
Aeronautical services	168,703		221,522		249,479
Non-aeronautical services	40,820		46,879		47,819
Construction services	41,487		19,527		30,204
Total revenues	251,010		287,928		327,502
Operating costs:
Costs and administrative expenses	49,225		53,470		61,073
Major maintenance provision	(4,949)		12,490		16,913
Construction costs	41,487		19,527		30,204
Depreciation and amortization	14,486		15,458		15,814
Solidarity fee	110,590		131,931		144,031
Total operating costs	210,839		232,876		268,035
Income from operations	40,171		55,052		59,467
Operating margin(1)	16.0	%	19.1	%	18.2	%

Zihuatanejo:
Revenues:
Aeronautical services	118,736		141,091		167,550
Non-aeronautical services	23,751		26,280		27,334
Construction services	57,943		25,699		28,039
Total revenues	200,430		193,070		222,923
Operating costs:
Costs and administrative expenses	42,710		28,391		42,645
Major maintenance provision	(73)		17,170		20,566
Construction costs	57,943		25,699		28,039
Depreciation and amortization	15,073		16,680		17,347
Solidarity fee	57,439		69,185		75,351
Total operating costs	173,092		157,125		183,948
Income from operations	27,338		35,945		38,975
Operating margin(1)	13.6	%	18.6	%	17.5	%

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos, except percentages)

Mazatlán:

Revenues:

Aeronautical services

122,061

136,063

148,781

Non-aeronautical services

34,900

34,719

37,002

Construction services

11,940

14,173

66,475

Total revenues

168,901

184,955

252,258

Operating costs:

Costs and administrative expenses

36,219

39,990

44,444

Major maintenance provision

6,583

22,044

25,573

Construction costs

11,940

14,173

66,475

Depreciation and amortization

10,903

11,258

11,794

Solidarity fee

78,126

68,905

67,493

Total operating costs

143,771

156,370

215,779

Income from operations

25,130

28,585

36,479

Operating margin(1)

14.9%

15.5%

14.5%

Zihuatanejo:

Revenues:

Aeronautical services

89,602

91,203

102,780

Non-aeronautical services

17,401

17,843

19,990

Construction services

15,708

24,348

14,504

Total revenues

122,711

133,394

137,274

Operating costs:

Costs and administrative expenses

32,660

28,684

40,510

Major maintenance provision

6,360

10,017

12,059

Construction costs

15,708

24,348

14,504

Depreciation and amortization

11,909

13,346

13,738

Solidarity fee

39,920

33,377

31,810

Total operating costs

106,557

109,772

112,621

Income from operations

16,154

23,622

24,653

Operating margin(1)

13.2%

17.7%

18.0%

100

~~110~~


	For the Year Ended December 31,
	2015		2016		2017
	(in thousands of pesos, except percentages)
Regional Destinations
Chihuahua:
Revenues:
Aeronautical services	196,033		272,921		308,746
Non-aeronautical services	40,204		48,374		52,742
Construction services	3,769		16,061		122,412
Total revenues	240,006		337,356		483,900
Operating costs:
Costs and administrative expenses	49,308		51,000		58,522
Major maintenance provision	30,246		28,066		18,446
Construction costs	3,769		16,061		122,412
Depreciation and amortization	12,025		11,853		12,683
Solidarity fee	118,105		166,118		199,542
Total operating costs	213,453		273,098		411,605
Income from operations	26,553		64,258		72,295
Operating margin(1)	11.1	%	19.0	%	14.9	%

Culiacán:
Revenues:
Aeronautical services	255,921		351,096		409,399
Non-aeronautical services	39,981		48,280		53,296
Construction services	34,058		9,608		43,362
Total revenues	329,960		408,984		506,057
Operating costs:
Costs and administrative expenses	52,111		66,614		71,442
Major maintenance provision	23,338		11,251		10,368
Construction costs	34,058		9,608		43,362
Depreciation and amortization	15,898		16,006		16,147
Solidarity fee	163,791		225,630		272,181
Total operating costs	289,196		329,109		413,500
Income from operations	40,764		79,875		92,557
Operating margin(1)	12.4	%	19.5	%	18.3	%

Durango:
Revenues:
Aeronautical services	63,186		98,550		100,884
Non-aeronautical services	9,080		11,026		11,061
Construction services	2,992		4,381		19,974
Total revenues	75,258		113,957		131,919
Operating costs:
Costs and administrative expenses	22,467		22,816		26,242
Major maintenance provision	23,868		14,649		18,130
Construction costs	2,992		4,381		19,974
Depreciation and amortization	5,867		5,965		6,140
Solidarity fee	9,073		47,129		39,045
Total operating costs	64,267		94,940		109,531
Income from operations	10,991		19,017		22,388
Operating margin(1)	14.6	%	16.7	%	17.0	%

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos, except percentages)

Regional Destinations

Chihuahua:

Revenues:

Aeronautical services

139,127

148,028

162,469

Non-aeronautical services

27,259

30,461

34,792

Construction services

26,654

9,127

15,719

Total revenues

193,040

187,616

212,980

Operating costs:

Costs and administrative expenses

33,260

41,320

52,976

Major maintenance provision

14,423

11,419

12,578

Construction costs

26,654

9,127

15,719

Depreciation and amortization

9,183

10,190

11,599

Solidarity fee

83,093

87,043

81,626

Total operating costs

166,613

159,099

174,498

Income from operations

26,427

28,517

38,482

Operating margin(1)

13.7%

15.2%

18.1%

Culiacán:

Revenues:

Aeronautical services

194,285

211,588

223,423

Non-aeronautical services

26,605

32,504

35,022

Construction services

66,093

18,294

34,097

Total revenues

286,983

262,386

292,542

Operating costs:

Costs and administrative expenses

41,589

48,850

53,029

Major maintenance provision

7,561

31,523

10,217

Construction costs

66,093

18,294

34,097

Depreciation and amortization

10,608

12,600

14,148

Solidarity fee

125,593

111,327

130,560

Total operating costs

251,444

222,594

242,051

Income from operations

35,539

39,792

50,491

Operating margin(1)

12.4%

15.2%

17.3%

101

~~111~~


	For the Year Ended December 31,
	2015		2016		2017
	(in thousands of pesos, except percentages)
San Luis Potosí:
Revenues:
Aeronautical services	99,341		130,337		149,823
Non-aeronautical services	20,482		23,666		24,603
Construction services	4,668		24,456		108,756
Total revenues	124,491		178,459		283,182
Operating costs:
Costs and administrative expenses	27,706		26,310		28,283
Major maintenance provision	(16,415)		28,384		29,556
Construction costs	4,668		24,456		108,757
Depreciation and amortization	7,431		7,105		7,934
Solidarity fee	78,415		61,403		79,575
Total operating costs	101,805		147,658		254,105
Income from operations	22,686		30,801		29,077
Operating margin(1)	18.2	%	17.3	%	10.3	%

Tampico:
Revenues:
Aeronautical services	144,178		162,389		171,550
Non-aeronautical services	22,810		22,735		25,859
Construction services	9,589		32,053		46,742
Total revenues	176,577		217,177		244,151
Operating costs:
Costs and administrative expenses	31,839		38,053		40,495
Major maintenance provision	21,551		10,782		14,583
Construction costs	9,589		32,053		46,742
Depreciation and amortization	6,655		6,567		7,697
Solidarity fee	74,150		92,697		95,152
Total operating costs	143,784		180,152		204,669
Income from operations	32,793		37,025		39,482
Operating margin(1)	18.6	%	17.0	%	16.2	%

Torreón:
Revenues:
Aeronautical services	110,480		151,251		156,158
Non-aeronautical services	18,191		20,087		22,478
Construction services	14,796		5,722		20,017
Total revenues	143,467		177,060		198,653
Operating costs:
Costs and administrative expenses	30,346		31,367		33,931
Major maintenance provision	1,431		16,916		19,361
Construction costs	14,796		5,722		20,017
Depreciation and amortization	8,484		8,515		8,726
Solidarity fee	63,345		80,272		80,878
Total operating costs	118,402		142,792		162,913
Income from operations	25,065		34,268		35,740
Operating margin(1)	17.5	%	19.4	%	18.0	%

Zacatecas:
Revenues:
Aeronautical services	66,957		87,616		95,153
Non-aeronautical services	9,304		10,120		12,172
Construction services	10,294		7,677		19,174
Total revenues	86,555		105,413		126,499
Operating costs:
Costs and administrative expenses	21,886		24,425		29,231
Major maintenance provision	10,768		17,315		19,843
Construction costs	10,294		7,677		19,174
Depreciation and amortization	6,718		6,656		6,815
Solidarity fee	25,287		29,793		32,082
Total operating costs	74,953		85,866		107,145
Income from operations	11,602		19,547		19,354
Operating margin(1)	13.4	%	18.5	%	15.3	%

102

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos, except percentages)

Durango:

Revenues:

Aeronautical services

45,051

44,341

48,937

Non-aeronautical services

6,723

7,144

7,784

Construction services

1,015

23,149

13,598

Total revenues

52,789

74,634

70,319

Operating costs:

Costs and administrative expenses

16,392

18,530

19,774

Major maintenance provision

7,152

7,383

9,805

Construction costs

1,015

23,149

13,598

Depreciation and amortization

3,966

4,092

5,981

Solidarity fee

15,783

13,710

10,033

Total operating costs

44,308

66,864

59,191

Income from operations

8,481

7,770

11,128

Operating margin(1)

16.1%

10.4%

15.8%

San Luis Potosí:

Revenues:

Aeronautical services

63,281

65,573

84,498

Non-aeronautical services

13,836

14,541

17,508

Construction services

9,355

73,874

14,772

Total revenues

86,472

153,988

116,778

Operating costs:

Costs and administrative expenses

16,427

19,713

20,871

Major maintenance provision

7,419

35,637

6,487

Construction costs

9,355

73,874

14,772

Depreciation and amortization

3,208

3,698

5,680

Solidarity fee

37,616

8,232

48,956

Total operating costs

74,025

141,154

96,766

Income from operations

12,447

12,834

20,012

Operating margin(1)

14.4%

8.3%

17.1%

~~112~~

	For the Year Ended December 31,
	2015		2016		2017
	(in thousands of pesos, except percentages)
Border Destinations
Ciudad Juárez:
Revenues:
Aeronautical services	146,201		208,042		244,891
Non-aeronautical services	29,225		34,351		40,676
Construction services	9,512		9,905		31,917
Total revenues	184,938		252,298		317,484
Operating costs:
Costs and administrative expenses	43,402		50,427		48,449
Major maintenance provision	29,265		24,025		31,042
Construction costs	9,512		9,905		31,917
Depreciation and amortization	10,658		10,334		11,104
Solidarity fee	63,508		109,129		137,857
Total operating costs	156,345		203,820		260,369
Income from operations	28,593		48,478		57,115
Operating margin(1)	15.5	%	19.2	%	18.0	%

Reynosa:
Revenues:
Aeronautical services	95,742		113,506		104,311
Non-aeronautical services	12,557		14,150		15,094
Construction services	6,012		23,847		127,353
Total revenues	114,311		151,503		246,758
Operating costs:
Costs and administrative expenses	25,587		24,558		29,074
Major maintenance provision	9,315		19,240		11,471
Construction costs	6,012		23,847		127,353
Depreciation and amortization	6,127		6,290		6,616
Solidarity fee	52,897		52,029		48,363
Total operating costs	99,938		125,964		222,877
Income from operations	14,373		25,539		23,881
Operating margin(1)	12.6	%	16.9	%	9.7	%

103

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos, except percentages)

Tampico:

Revenues:

Aeronautical services

105,275

108,330

124,312

Non-aeronautical services

14,938

15,504

18,183

Construction services

8,028

6,116

12,981

Total revenues

128,241

129,950

155,476

Operating costs:

Costs and administrative expenses

27,217

28,505

30,340

Major maintenance provision

9,914

19,496

14,364

Construction costs

8,028

6,116

12,981

Depreciation and amortization

5,172

5,518

7,356

Solidarity fee

58,842

48,419

62,312

Total operating costs

109,173

108,054

127,353

Income from operations

19,068

21,896

28,123

Operating margin(1)

14.9%

16.8%

18.1%

Torreón:

Revenues:

Aeronautical services

77,305

87,321

98,985

Non-aeronautical services

13,259

14,114

15,671

Construction services

10,231

11,887

12,444

Total revenues

100,795

113,322

127,100

Operating costs:

Costs and administrative expenses

23,411

27,644

29,603

Major maintenance provision

13,919

17,060

14,961

Construction costs

10,231

11,887

12,444

Depreciation and amortization

6,933

7,267

9,437

Solidarity fee

31,018

36,839

38,655

Total operating costs

85,512

100,698

105,100

Income from operations

15,283

12,624

22,000

Operating margin(1)

15.2%

11.1%

17.3%

~~113~~


	For the Year Ended December 31,
	2015		2016		2017
	(in thousands of pesos, except percentages)
Hotels
Terminal 2 NH Collection Hotel:
Revenues:
Non-aeronautical services	212,488		227,884		250,777
Total revenues	212,488		227,884		250,777
Operating costs:
Costs and administrative expenses	131,840		138,550		154,181
Depreciation and amortization	20,506		20,739		20,799
Total operating costs	152,346		159,289		174,980
Income from operations	60,142		68,595		75,797
Operating margin	28.3	%	30.1	%	30.2	%

Hilton Garden Inn Hotel:
Revenues:
Non-aeronautical services	16,882		83,625		90,875
Total revenues	16,882		83,625		90,875
Operating costs:
Costs and administrative expenses	16,703		52,135		55,084
Depreciation and amortization	1,163		9,268		10,111
Total operating costs	17,866		61,403		65,195
(Loss) income from operations	(984)		22,222		25,680
Operating margin	(5.8)	%	26.6	%	28.3	%

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos, except percentages)

Zacatecas:

Revenues:

Aeronautical services

51,177

51,282

56,872

Non-aeronautical services

6,713

7,139

7,535

Construction services

21,343

26,264

14,036

Total revenues

79,233

84,685

78,443

Operating costs:

Costs and administrative expenses

17,576

18,296

19,910

Major maintenance provision

5,929

7,099

15,631

Construction costs

21,343

26,264

14,036

Depreciation and amortization

4,467

5,146

6,247

Solidarity fee

20,409

17,990

9,768

Total operating costs

69,724

74,795

65,592

Income from operations

9,509

9,890

12,851

Operating margin(1)

12.0%

11.7%

16.4%

Border Destinations

Ciudad Juárez:

Revenues:

Aeronautical services

110,444

112,707

124,252

Non-aeronautical services

20,563

22,460

24,784

Construction services

27,785

9,078

13,782

Total revenues

158,792

144,245

162,818

Operating costs:

Costs and administrative expenses

35,039

35,965

37,434

Major maintenance provision

12,701

17,275

13,313

Construction costs

27,785

9,078

13,782

Depreciation and amortization

8,222

8,212

9,294

Solidarity fee

54,289

50,964

59,549

Total operating costs

138,036

121,494

133,372

Income from operations

20,756

22,751

29,446

Operating margin(1)

13.1%

15.8%

18.1%


	For the Year Ended December 31,
	2015		2016			2017
	(in thousands of pesos, except percentages)
Industrial Park
OMA-Vynmsa Aero Industrial Park:
Revenues:
Non-aeronautical services		N/A		4,952		12,914
Total revenues		N/A		4,952		12,914
Operating costs:
Costs and administrative expenses		N/A		4,599		5,481
Depreciation and amortization		N/A		3,416		9,200
Total operating costs		N/A		8,015		14,681
Loss from operations		N/A		(3,063)		(1,767)
Operating margin		N/A		(61.9)	%	(13.7)	%

(1)

We determine operating margin per airport by dividing income from operations at each airport by total revenues for that airport.

~~114~~

104

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos, except percentages)

Reynosa:

Revenues:

Aeronautical services

53,719

69,919

85,018

Non-aeronautical services

8,143

9,425

10,988

Construction services

31,570

17,795

9,988

Total revenues

93,432

97,139

105,994

Operating costs:

Costs and administrative expenses

16,816

18,771

22,398

Major maintenance provision

6,188

10,466

17,137

Construction costs

31,570

17,795

9,988

Depreciation and amortization

3,671

4,526

6,939

Solidarity fee

25,299

32,417

30,614

Total operating costs

83,544

83,975

87,076

Income from operations

9,888

13,164

18,918

Operating margin(1)

10.6%

13.6%

17.8%

Hotel:

Revenues:

Non-aeronautical services

158,477

176,510

195,742

Total revenues

158,477

176,510

195,742

Operating costs:

Costs and administrative expenses

98,925

103,801

122,683

Depreciation and amortization

20,334

20,219

19,883

Total operating costs

119,259

124,020

142,566

Income from operations

39,218

52,490

53,176

Operating margin

24.7%

29.7%

27.2%

~~(1)We determine operating margin per airport by dividing income from operations at each airport by total revenues for that airport.~~

Historically, our most profitable airport has been the Monterrey airport, which handles the majority of our international passengers. In recent years, however, this trend has changed. In 2012, the Durango airport was our most profitable airport, primarily due to lower administrative expenses and major maintenance provision compared to the other airports. In 2013, the Zihuatanejo airport was our most profitable airport, primarily due to other income received from the sale of fixed assets. In 2014, the Acapulco airport was our most profitable airport, principally as a result of a decrease in the major maintenance provision, mainly due to new estimates of major maintenance requirements in our airports in 2013, as well as lower minor maintenance requirements coupled with increased aeronautical and non-aeronautical revenues. We determine profitability per airport by dividing income from operations in each airport by total revenues for that airport.

~~115~~

105

Revenues from construction services in ~~2014~~2017 were ~~Ps. 307,327~~Ps.1,326,458 thousand, ~~a decrease~~an increase of ~~12.9%~~284.7% from ~~Ps. 352,688~~Ps.344,772 thousand recognized in ~~2013,~~2016, primarily as a result of ~~a decrease~~an increase in ~~investments~~investment in improvements ~~for~~of concession ~~assets.~~assets, principally in the Acapulco, Monterrey, Chihuahua and San Luis Potosí airports.

Our revenues are highly dependent on the volume of passenger traffic. We have reasonable expectations that passenger traffic will continue to increase in the upcoming years.

Revenues by Segment

On an airport-by-airport basis, the principal contributors to total revenues in ~~2014~~2017 were the Monterrey airport ~~(Ps. 1,564,653~~(Ps.2,960,897 thousand), the Acapulco airport (Ps.564,790 thousand), the Culiacán airport ~~(Ps. 292,542~~(Ps.506,057 thousand), the Chihuahua airport (Ps.483,900 thousand), the Mazatlán airport ~~(Ps. 252,258 thousand), the Chihuahua airport (Ps. 212,980 thousand), the Acapulco airport (Ps. 188,665~~(Ps.327,502 thousand), the Ciudad Juárez airport ~~(Ps. 162,818~~(Ps.317,484 thousand), and the ~~Tampico~~San Luis Potosí airport ~~(Ps. 155,476~~(Ps.283,183 thousand). The new terminal at the Acapulco Airport helped to increase revenues in 2017, but, historically, Monterrey, Culiacán and Chihuahua have been our three principal contributors to revenues, and we expect this trend to continue in the future.

Metropolitan Destination

At the Monterrey airport, aeronautical revenues increased by ~~11.6%~~13.7% from ~~Ps. 1,046,621~~Ps.1,799,823 thousand in ~~2013~~2016 to ~~Ps. 1,167,807~~Ps.2,046,097 thousand in ~~2014,~~2017, due primarily to a ~~10.7%~~13.8% increase in passenger charges, as a result of a 6.5% increase in passenger traffic. Non-aeronautical revenues decreased by 2.2% from Ps.560,016 thousand in 2016 to Ps.547,586 in 2017, due primarily to a 31.5% decrease in revenues from OMA Carga, derived from the opening of the OMA Logística bonded warehouse located at the Monterrey airport, which exclusively deals with ground cargo operations, which used to be operated, along with air cargo operations, by the OMA Carga bonded warehouse located at the Monterrey airport. As of February 17, 2018, the bonded warehouse of OMA Carga in the Monterrey airport is dedicated to serving only air cargo operations. The decrease in non-aeronautical revenues was also due to a 13.7% decrease in advertising. The sum of aeronautical and non‑aeronautical revenues increased by 9.9% from Ps.2,359,839 thousand in 2016 to Ps.2,593,683 thousand in 2017. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 3.1% from Ps.244.4 in 2016 to Ps.251.8 in 2017, principally due to the increase in aeronautical revenues.

TouristDestinations

At the Acapulco airport, aeronautical revenues increased by 6.2% from Ps. 149,214 thousand in 2016 to Ps.158,448 thousand in 2017, due primarily to a 6.3% increase in passenger charges, as a result of an ~~11.1%~~ increase in ~~passenger traffic. Non-aeronautical~~aeronautical tariffs. Non‑aeronautical revenues increased by ~~12.3%~~12.0% from ~~Ps. 320,774~~Ps.30,446 thousand in ~~2013~~2016 to ~~Ps. 360,228~~Ps.34,089 thousand in ~~2014,~~2017, due primarily to a ~~15.0%~~38.0% increase in car ~~parking revenues, new VIP Lounge operating in the airport, which generated Ps. 6,906 thousand revenues in 2014, a 17.6%~~rental and an 84.2% increase in ~~food and beverage services, a 12.2% increase in OMA Carga and a 9.0% increase in advertising revenues.~~rental revenues from telecommunications companies. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~11.7%~~7.2% from ~~Ps. 1,367,395~~Ps.179,660 thousand in ~~2013~~2016 to ~~Ps. 1,528,035~~Ps.192,537 thousand in ~~2014.~~2017. The sum of aeronautical and ~~non-~~

~~117~~

106

16.4% from Ps.167,371 thousand in 2016 to Ps.194,884 thousand in 2017. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 8.7% from Ps.298.9 in 2016 to Ps.324.9 in 2017, principally due to the increase in aeronautical and non aeronautical revenues.

Regional Destinations

At the Chihuahua airport, aeronautical revenues increased by 13.1% from Ps.272,921 thousand in 2016 to Ps.308,746 thousand in 2017, due primarily to a 16.3% increase in passenger charges, as a result of a 7.9% increase in passenger traffic. ~~Non-aeronautical~~Non‑aeronautical revenues increased by ~~6.6% Ps. 34,719~~9.0% from Ps.48,374 thousand in ~~2013~~2016 to ~~Ps. 37,002~~Ps.52,742 thousand in ~~2014,~~2017, due primarily to a ~~19.4%~~29.1% increase in revenues from OMA Carga and a 22.6% increase in car ~~parking revenues, a 15.9% increase in advertising revenues and a 13.8% increase in car rental revenues.~~rental. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~8.8%~~12.5% from ~~Ps. 170,782~~Ps.321,295 thousand in ~~2013~~2016 to ~~Ps. 185,783~~Ps.361,488 thousand in ~~2014.~~2017. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~0.7%~~4.5% from ~~Ps. 230.4~~Ps.234.6 in ~~2013~~2016 to ~~Ps. 231.9~~Ps.245.1 in ~~2014,~~2017, principally due to the ~~increases~~increase in aeronautical and non-aeronautical revenues.

At the ~~Zihuatanejo~~Culiacán airport, aeronautical revenues increased by ~~12.7%~~16.6% from ~~Ps. 91,203~~Ps.351,096 thousand in ~~2013~~2016 to ~~Ps. 102,780~~Ps.409,399 thousand in ~~2014,~~2017, due primarily to ~~a 13.0%~~an 18.5% increase in passenger charges, as a result of a ~~10.5%~~10.6% increase in passenger traffic. Non-aeronautical revenues increased by ~~12.0%~~10.4% from ~~Ps. 17,843~~Ps.48,280 thousand in ~~2013~~2016 to ~~Ps. 19,990~~Ps.53,296 thousand in ~~2014,~~2017, due primarily to a ~~27.2%~~26.3% increase in car rental, ~~revenues, a 45.0%~~an 89.1% increase in ~~food~~VIP lounge revenue and ~~beverage revenues, and a 68.6%~~an 18.7% increase in ~~passenger services, as a result of the implementation of interactive modules and screens with digital advertising and content.~~ retail operations. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~12.6%~~15.9% from Ps. ~~109,046~~399,376 thousand in ~~2013~~2016 to ~~Ps. 122,770 thousand~~Ps.462,695 in ~~2014.~~2017. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~2.2%~~5.0% from ~~Ps. 236.1~~Ps.226.1 in ~~2013~~2016 to ~~Ps. 241.2~~Ps.237.4 in ~~2014,~~2017, principally due to the ~~increases~~increase in aeronautical and non-aeronautical revenues.

~~Regional Destinations~~

At the ~~Chihuahua~~Durango airport, aeronautical revenues increased by ~~9.8%~~2.4% from ~~Ps. 148,028~~Ps.98,550 thousand in ~~2013~~2016 to ~~Ps. 162,469~~Ps.100,884 thousand in ~~2014,~~2017, due primarily to a 28.3% increase in international passenger charges, as a result of an ~~11.1%~~18.0% increase in international passenger traffic. Non‑aeronautical revenues increased by 0.3% from Ps.11,026 thousand in 2016 to Ps.11,061 thousand in 2017, due primarily to a 21.7% increase in car rental. The sum of aeronautical and non‑aeronautical revenues increased by 2.2% from Ps.109,576 thousand in 2016 to Ps.111,945 thousand in 2017. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 9.6% from Ps.255.8 in 2016 to Ps.280.4 in 2017, principally due to the increase in aeronautical and non-aeronautical revenues.

At the San Luis Potosí airport, aeronautical revenues increased by 15.0% from Ps.130,337 thousand in 2016 to Ps.149,823 thousand in 2017, due primarily to a 16.2% increase in passenger charges, as a result of a ~~8.6%~~9.7% increase in passenger traffic. ~~Non-aeronautical~~Non‑aeronautical revenues increased by ~~14.2%~~4.0% from ~~Ps. 30,461~~Ps.23,666 thousand in ~~2013~~2016 to ~~Ps. 34,792~~Ps.24,603 thousand in ~~2014,~~2017, due primarily to ~~an 18.3%~~a 21.7% increase in leasing of space, a 9.5% increase in car ~~parking revenues, a 57.1% increase in food and beverage revenues~~rental and a ~~21.5% increase~~7.3% in ~~retail operations.~~car parking. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~10.5%~~13.3% from ~~Ps. 178,489~~Ps.154,003 thousand in ~~2013~~2016 to ~~Ps. 197,261~~Ps.174,426 thousand in ~~2014.~~2017. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~2.0%~~5.2% from Ps. ~~190.0~~202.0 in ~~2013~~2016 to ~~Ps. 193.8~~Ps.212.6 in ~~2014,~~2017, principally due to the ~~increases~~increase in aeronautical and non-aeronautical revenues.

At the ~~Culiacán~~Tampico airport, aeronautical revenues increased by 5.6% from ~~Ps. 211,588~~Ps.162,389 thousand in ~~2013~~2016 to ~~Ps. 223,423~~Ps.171,550 thousand in ~~2014,~~2017 due primarily to a ~~6.7%~~7.2% increase in passenger charges, as a result of an increase in aeronautical tariffs. Non‑aeronautical revenues increased by 13.7% from Ps.22,735 thousand in 2016 to Ps.25,859 thousand in 2017, due primarily to a 46.7% increase in car rental and a 39.7% increase in food and beverage. The sum of aeronautical and non‑aeronautical revenues increased by 6.6% from Ps.185,124 thousand in 2016 to Ps.197,409 thousand in 2017. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 6.8% from Ps.256.5 in 2016 to Ps.274.0 in 2017, principally due to the increase in aeronautical and non-aeronautical revenues.

At the Torreón airport, aeronautical revenues increased by 3.2% from Ps.151,251 thousand in 2016 to Ps.156,158 thousand in 2017, due primarily to a 6.2% increase in passenger charges. Non‑aeronautical revenues increased by 11.9% from Ps.20,087 thousand in 2016 to Ps.22,478 thousand in 2017, due primarily to a 75.0% increase in car rental. The sum of aeronautical and non‑aeronautical revenues increased by 4.3% from Ps.171,338 thousand in 2016 to Ps.178,636 thousand in 2017. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 8.9% from Ps.261.4 in 2016 to Ps.284.6 in 2017, principally due to the increase in aeronautical and non-aeronautical revenues.

107

At the Zacatecas airport, aeronautical revenues increased by 8.6% from Ps.87,616 thousand in 2016 to Ps.95,153 thousand in 2017, due primarily to a 9.3% increase in passenger charges, as a result of a ~~4.5%~~1.8% increase in passenger traffic. ~~Non-aeronautical~~Non‑aeronautical revenues increased by ~~7.7%~~20.3% from ~~Ps. 32,504~~Ps.10,120 thousand in ~~2013~~2016 to ~~Ps. 35,022~~Ps.12,172 thousand in ~~2014,~~2017, due primarily to a ~~33.4%~~144.5% increase in ~~advertising~~revenues from car rental. The sum of aeronautical and non‑aeronautical revenues increased by 9.8% from Ps.97,736 thousand in 2016 to Ps.107,325 thousand in 2017. The sum of aeronautical and non‑aeronautical revenues per workload unit at the Zacatecas airport increased by 7.8% from Ps.284.7 in 2016 to Ps.307.1 in 2017, principally due to the increase in aeronautical and non aeronautical revenues.

Border Destinations

~~118~~

108

Major maintenance provision

Our major maintenance provision increased from Ps.262,871 thousand in 2016 to Ps.291,038 thousand in 2017, due to inflation adjustments based on the Mexican producer price index (excluding fuel).

Administrative Expenses

Our administrative expenses decreased by 8.5% from Ps.642,345 thousand in 2016 to Ps.587,917 thousand in 2017, due primarily to a 33.2% decrease in studies and a 46.8% decrease in travel expenses.

Technical Assistance Fee

Our technical assistance fee, which is paid in U.S. dollars, increased by 14.5% from Ps.117,987 thousand in 2016 to Ps.135,074 thousand in 2017, reflecting an increase in revenues.

Concession Tax

Our concession tax increased by 11.1% from Ps.244,215 thousand in 2016 to Ps.271,331 thousand in 2017, as a result of an increase in aeronautical and non-aeronautical revenues.

Depreciation and Amortization

Our 8.2% increase in depreciation and amortization, from Ps.276,634 thousand in 2016 to Ps.299,205 thousand in 2017, was principally due to an increase in investment improvements to concession assets during 2017.

Income from Operations

On a consolidated basis, our operating income increased by 16.4% from Ps.2,783,554 thousand during 2016 to Ps.3,239,119 thousand in 2017, due primarily to a 28.5% increase in total revenue, which offset the 40.6% increase in total cost. Our operating margin decreased from 50.2% in 2016 to 45.4% in 2017, but, considering only the sum of our aeronautical and non‑aeronautical revenues, our operating margin increased from 53.5% in 2016 to 55.8% in 2017.

Operating Income by Segment

The figures presented in this section take into account the intercompany transactions described above under “—Operating Results—Solidarity Fees.” In addition, the operating cost amounts exclude construction costs, which have been eliminated together with construction revenues.

On an airport-by-airport basis, the principal contributors to our operating income in 2017 were the Monterrey airport (Ps.2,046,097 thousand), the Culiacán airport (Ps.409,399 thousand), the Chihuahua airport (Ps.308,746 thousand), the Mazatlán airport (Ps.249,479 thousand), the Ciudad Juárez airport (Ps.244,891 thousand), and the Tampico airport (Ps.171,550 thousand).

Metropolitan Destination

Operating income for the Monterrey airport increased by 9.5% from Ps.473,916 thousand in 2016 to Ps.518,740 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues that offset the increase in operating costs. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.1,402,061 thousand in 2016 to Ps.1,552,711 thousand in 2017, due to an increase in aeronautical operations.

Tourist Destinations

Operating income for the Acapulco airport decreased by 2.4% from Ps.39,461thousand in 2016 to Ps.38,533 thousand in 2017, due primarily to an increase in operating costs that exceeded the increase in revenues. The increase in operating costs mainly reflected a 62.0% increase in cost and administrative expenses due to minor maintenance requirements that increased from Ps.11,806 thousand in 2016 to Ps.18,824 thousand in 2017, and an increase in utilities from Ps. 11,571 thousand in 2016 to Ps.13,237 thousand in 2017, derived from a higher level of operations.

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Operating income for the Mazatlán airport increased by 8.0% from Ps.55,052 thousand in 2016 to Ps.59,467 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.131,931 thousand in 2016 to Ps.144,031 thousand in 2017, due to an increase in revenues.

Operating income for the Zihuatanejo airport increased by 8.4% from Ps 35,945 thousand in 2016 to Ps.38,975 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected a 50.2% increase in costs and administrative expenses, from Ps.28,391 thousand in 2016 to Ps.42,645 thousand in 2017.

Regional Destinations

Operating income for the Chihuahua airport increased by 12.5% from Ps.64,258 thousand in 2016 to Ps.72,295 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.166,118 thousand in 2016 to Ps.199,542 thousand in 2017, due to an increase in revenues.

Operating income for the Culiacán airport increased by 15.9% from Ps.79,875 thousand in 2016 to Ps.92,557 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.225,630 thousand in 2016 to Ps.272,181 thousand in 2017, due to an increase in revenue.

Operating income for the Durango airport increased by 17.7% from Ps.19,017 thousand in 2016 to Ps.22,388 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The decrease in operating costs mainly reflected a reduction in solidarity fees from Ps.47,129 thousand in 2016 to Ps.39,045 thousand in 2017, due to a reduction in operations.

Operating income for the San Luis Potosí airport decreased by 5.6% from Ps.30,801 thousand in 2016 to Ps.29,078 thousand in 2017, due primarily to an increase in operating costs that exceeded the increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.61,403 thousand in 2016 to Ps.79,575 thousand in 2017, due to an increase in revenue.

Operating income for the Tampico airport increased by 6.6% from Ps.37,025 thousand in 2016 to Ps.39,482 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.92,697 thousand in 2016 to Ps.95,152 thousand in 2017, due to an increase in revenues.

Operating income for the Torreón airport increased by 4.3% from Ps.34,268 thousand in 2016 to Ps.35,740 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in costs and administrative expenses from Ps.31,367 thousand in 2016 to Ps.33,931 thousand in 2017, due to an increase in utilities from Ps.4,660 thousand in 2016 to Ps.5,393 thousand in 2017 and an increase in minor maintenance requirements from Ps.5,704 thousand to Ps.6,092 thousand in 2017.

Operating income for the Zacatecas airport decreased by 1.0% from Ps.19,547 thousand in 2016 to Ps.19,354 thousand in 2017, due primarily to an increase in operating costs that exceeded the increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in costs and administrative expenses from Ps.24,425 thousand in 2016 to Ps.29,231 thousand in 2017, due to an increase in other income from Ps.1,187 thousand in 2016 to Ps.2,294 thousand in 2017.

Border Destinations

Operating income for the Ciudad Juárez airport increased by 17.8% from Ps.48,478 thousand in 2016 to Ps.57,115 thousand in 2017, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.109,129 thousand in 2016 to Ps.137,857 thousand in 2017 due to an increase in revenues.

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Operating income for the Reynosa airport decreased by 6.5% from Ps.25,539 thousand in 2016 to Ps.23,881 thousand in 2017, due primarily to a decrease in aeronautical revenues due to a 13.9% decrease in passenger traffic. The decrease in operating costs mainly reflected a 40.4% decrease in the major maintenance provision due to a decrease in maintenance requirements and a 7.0% decrease in solidarity fees due to a decrease in aeronautical revenue.

Hotels

Operating income for our Terminal 2 NH Collection Hotel increased from Ps.68,595 thousand in 2016 to Ps.75,797 thousand in 2017, due primarily to an increase in revenues. The increase in revenues was mainly due to a 3.4% increase in the average rate per room, from Ps.2,202 in 2016 to Ps.2,277 in 2017, and due to a higher annual occupancy rate, which increased from 79.0% in 2016 to 86.3% in 2017.

Operating income for our Hilton Garden Inn Hotel increased from Ps.22,222 thousand in 2016 to Ps.25,680 thousand in 2017, due primarily to an increase in revenues. The increase in revenues was mainly due to a 2.8% increase in the average rate per room, from Ps.1,954 in 2016 to Ps.2,010 in 2017, and due to a higher annual occupancy rate, which increased from 73.0% in 2016 to 75.9% in 2017.

Industrial Park

Operating income for our OMA-Vynmsa Industrial Park increased from a loss of Ps.3,063 thousand in 2016 to a loss of Ps.1,767 thousand in 2017, which reflected the start of new lease agreements that we entered into during 2016 and 2017.

Exchange Gain (Loss)

We had a net exchange loss in 2017 of Ps.63,072 thousand, as compared to a loss of Ps. 29,177 thousand in 2016, due primarily to an increase in exchange loss of Ps.161,795 thousand against an increase in exchange gain of Ps.127,897 thousand, mainly due to an increase on our dollar-denominated liabilities. The gross exchange loss in 2017 was Ps.232,043 thousand. The exchange rate used to convert our dollar‑denominated liabilities from pesos to U.S. dollars was Ps.19.7354 to U.S.$1.00 as of December 31, 2017 and Ps.20.6640 to U.S.$1.00 as of December 31, 2016.

Net Interest Expense

Our net interest expense increased by 72.0% from Ps.131,094 thousand in 2016 to Ps.225,532 thousand in 2017, mainly due to a Ps.88,595 thousand decrease in interest income that resulted from the effect of updating the major maintenance provision, reflecting market conditions. During 2017, the annualized interest rates on 28‑day short‑term Mexican treasury bills, or Certificados de la Tesorería de la Federación, consistentlyincreased from 5.8% on January 1, 2017 to 7.2% on December 31, 2017, with a yearly average of 6.7%.

Income Taxes

We recorded an income tax expense of Ps.813,073 thousand in 2017, as compared to an income tax expense of Ps.746,782 thousand in 2016, principally due to an increase in current income tax due to higher revenues.

Our current income tax increased from Ps.672,298 to Ps.810,641 as a result of increased revenues.

Our effective tax rate was 28.5% in 2016 and 27.6% in 2017. The effective tax rates in 2016 and 2017 differed from the statutory rate of 30%, principally as a result of inflationary effects, resulting in a lower effective tax rate.

Net Income and Comprehensive Income

Our net income increased by 13.9% from Ps.1,876,501 thousand in 2016 to Ps.2,137,442 thousand in 2017. Comprehensive income increased by 12.0% from Ps.1,878,974 thousand in 2016 to Ps.2,134,503 thousand in 2017. Earnings per share were Ps.5.4046 and earnings per ADS were Ps.43.2368 in 2017.

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Results of Operations for the Year Ended December 31, 2016, Compared to the Year Ended December 31, 2015.

Consolidated Revenues

Total revenues for 2016 were Ps.5,550,269 thousand, 23.5% higher than the Ps.4,492,659 thousand recorded in 2015, primarily as a result of an increase in both aeronautical and non‑aeronautical revenues. The sum of aeronautical and non‑aeronautical revenues in 2016 increased by 25.6% as compared to 2015.

Aeronautical revenues increased by 27.7% to Ps.3,872,735 thousand in 2016, as compared to Ps.3,033,130 thousand in 2015, due primarily to an increase in passenger charges from Ps.2,496,709 thousand in 2015 to Ps.3,288,230 thousand in 2016 attributable to a 10.9% increase in passenger traffic. Aeronautical revenues per workload unit in 2016 were Ps.196.7 compared to Ps.169.9 in 2015, an increase of 15.8%.

Non‑aeronautical revenues increased by 19.9% from Ps.1,111,541 thousand in 2015 to Ps.1,332,762 in 2016, due primarily to the diversification and expansion of our commercial activities. Non‑aeronautical revenues per terminal passenger increased by 8.1%, from Ps.65.7 in 2015 to Ps.71.0 in 2016, due primarily to the development and implementation of the commercial and diversification initiatives mentioned under “Item 4. Information on the Company—Business Overview—Our Sources of Revenues.”

Revenues from construction services in 2016 were Ps.344,772 thousand, a decrease of 0.9% from Ps.347,988 thousand recognized in 2015, as a result of a decrease in investments on improvements to concession assets.

Our revenues are highly dependent on the volume of passenger traffic. We have reasonable expectations that passenger traffic will continue to increase in the upcoming years.

Revenues by Segment

On an airport-by-airport basis, the principal contributors to revenues in 2016 were the Monterrey airport (Ps.1,799,823 thousand), the Culiacán airport (Ps.351,096 thousand), the Chihuahua airport (Ps.272,921 thousand), the Mazatlán airport (Ps.221,522 thousand), the Ciudad Juárez airport (Ps.208,042 thousand), the Tampico airport (Ps.162,389 thousand), and the Torreón airport (Ps.151,251 thousand). Historically, Monterrey, Culiacán and Chihuahua have been our three principal contributors to revenues; we expect that this trend will continue in the future.

Metropolitan Destination

At the ~~Durango~~Monterrey airport, aeronautical revenues increased by ~~10.4%~~24.7% from ~~Ps. 44,341~~Ps.1,443,311 thousand in ~~2013~~2015 to ~~Ps. 48,937~~Ps.1,799,823 thousand in ~~2014,~~2016, due primarily to ~~10.5%~~a 30.2% increase in passenger charges, ~~principally~~ as a result of an 8.5% increase in passenger traffic. Non-aeronautical revenues increased by ~~9.0%~~15.7% from ~~Ps. 7,144~~Ps.484,111 thousand in ~~2013~~2015 to ~~Ps. 7,784 thousand~~Ps.560,016 in ~~2014,~~2016, due primarily to a ~~23.9%~~21.5% increase in revenues from OMA Carga, a 30.6% increase in retail stores revenues and a 28.2% increase in food and beverage revenues. The sum of aeronautical and non‑aeronautical revenues increased by 22.4% from Ps.1,927,422 thousand in 2015 to Ps.2,359,839 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 13.4% from Ps.215.4 in 2015 to Ps.244.4 in 2016, principally due to the increase in aeronautical and non‑aeronautical revenues.

Tourist Destinations

At the Acapulco airport, aeronautical revenues increased by 7.9% from Ps.138,309 thousand in 2015 to Ps.149,214 thousand in 2016, due primarily to a 9.2% increase in passenger charges, as a result of an increase in aeronautical tariffs. Non‑aeronautical revenues increased by 9.3% from Ps.27,864 thousand in 2015 to Ps.30,446 thousand in 2016, due primarily to a 35.2% increase in revenues from retail stores. The sum of aeronautical and non‑aeronautical revenues increased by 8.1% from Ps.166,173 thousand in 2015 to Ps.179,660 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 10.0% from Ps.226.5 in 2015 to Ps.249.1 in 2016, principally due to the increase in aeronautical and non‑aeronautical revenues.

At the Mazatlán airport, aeronautical revenues increased by 31.3% from Ps.168,703 thousand in 2015 to Ps.221,522 thousand in 2016, due primarily to a 34.2% increase in passenger charges, as a result of a 14.1% increase in

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passenger traffic. Non‑aeronautical revenues increased by 14.8% from Ps.40,820 thousand in 2015 to Ps.46,879 thousand in 2016, due primarily to a 26.8% increase in revenues from time-share developers, a 17.0% increase in retail stores revenues and a 28.8% increase in food and beverage revenues. The sum of aeronautical and non‑aeronautical revenues increased by 28.1% from Ps.209,523 thousand in 2015 to Ps.268,401 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 12.1% from Ps.241.1 in 2015 to Ps.270.2 in 2016, principally due to the increase in aeronautical and non‑aeronautical revenues.

At the Zihuatanejo airport, aeronautical revenues increased by 18.8% from Ps.118,736 thousand in 2015 to Ps.141,091 thousand in 2016, due primarily to a 21.8% increase in passenger charges, as a result of an increase in aeronautical tariffs. Non‑aeronautical revenues increased by 10.6% from Ps.23,751 thousand in 2015 to Ps.26,280 thousand in 2016, due primarily to a 21.9% increase in retail stores revenues and an 8.5% increase in advertising revenues. The sum of aeronautical and non‑aeronautical revenues increased by 17.5% from Ps.142,487 thousand in 2015 to Ps.167,372 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 18.2% from Ps.252.8 in 2015 to Ps.298.9 in 2016, principally due to the increase in aeronautical and non‑aeronautical revenues.

Regional Destinations

At the Chihuahua airport, aeronautical revenues increased by 39.2% from Ps.196,033 thousand in 2015 to Ps.272,921 thousand in 2016, due primarily to a 43.2% increase in passenger charges, as a result of a 17.6% increase in passenger traffic. Non‑aeronautical revenues increased by 20.3% from Ps.40,204 thousand in 2015 to Ps.48,374 thousand in 2016, due primarily to an 84.1% increase in revenues from OMA Carga operations, a 56.7% increase in car rental revenues and a 13.9% increase in car parking revenues. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~10.2%~~36.0% from ~~Ps. 51,485~~Ps.236,237 thousand in ~~2013~~2015 to ~~Ps. 56,721~~Ps.321,295 thousand in ~~2014.~~2016. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~1.2%~~16.5% from ~~Ps. 216.3~~Ps.201.4 in ~~2013~~2015 to ~~Ps. 219.0~~Ps.234.6 in ~~2014,~~2016, principally due to the ~~increases~~increase in aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

At the Culiacán airport, aeronautical revenues increased by 37.2% from Ps.255,921 thousand in 2015 to Ps.351,097 thousand in 2016, due primarily to a 39.8% increase in passenger charges, as a result of a 20.5% increase in passenger traffic. Non‑aeronautical revenues increased by 20.8% from Ps.39,981 thousand in 2015 to Ps.48,280 thousand in 2016, due primarily to a 45.9% increase in retail stores revenues and a 36.5% increase in food and beverage revenues. The sum of aeronautical and non‑aeronautical revenues increased by 35.0% from Ps.295,902 thousand in 2015 to Ps.399,376 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 12.2% from Ps.201.5 in 2015 to Ps.226.1 in 2016, principally due to the increase in aeronautical and non‑aeronautical revenues.

At the Durango airport, aeronautical revenues increased by 56.0% from Ps.63,186 thousand in 2015 to Ps.98,550 thousand in 2016, due primarily to a 66.3% increase in passenger charges, principally as a result of a 34.4% increase in passenger traffic. Non‑aeronautical revenues increased by 21.4% from Ps.9,080 thousand in 2015 to Ps.11,026 thousand in 2016, due primarily to a 38.6% increase in car parking revenues and a 68.3% increase in car rental revenues. The sum of aeronautical and non‑aeronautical revenues increased by 51.6% from Ps.72,266 thousand in 2015 to Ps.109,576 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit increased by 13.1% from Ps.226.2 in 2015 to Ps.255.8 in 2016, principally due to the increase in aeronautical and non‑aeronautical revenues.

At the San Luis Potosí airport, aeronautical revenues increased by ~~28.9%~~31.2% from ~~Ps. 65,573~~Ps.99,341 thousand in ~~2013~~2015 to ~~Ps. 84,498~~Ps.130,337 thousand in ~~2014,~~2016, due primarily to a ~~30.8%~~34.3% increase in passenger charges as a result of a ~~42.9%~~13.5% increase in passenger traffic. ~~Non-aeronautical~~Non‑aeronautical revenues increased by ~~20.4%~~15.5% from ~~Ps. 14,541~~Ps.20,482 thousand in ~~2013~~2015 to ~~Ps. 17,508~~Ps.23,666 thousand in ~~2014,~~2016, due primarily to a ~~36.0% increase in car parking revenues, a 13.3% increase in revenues from the leasing of space, a 31.0% increase in advertising revenues and 22.6%~~64.4% increase in car rental revenues. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~27.3%~~28.5% from ~~Ps. 80,114~~Ps.119,823 thousand in ~~2013~~2015 to ~~Ps. 102,006~~Ps.154,003 thousand in ~~2014.~~2016. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~1.6%~~20.6% from ~~Ps. 157.6~~Ps.167.4 in ~~2013~~2015 to ~~Ps. 160.1~~202.0 in ~~2014,~~2016, principally due to the ~~increases~~increase in aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

At the Tampico airport, aeronautical revenues increased by ~~14.8%~~12.6% from ~~Ps. 108,330~~Ps.144,178 thousand in ~~2013~~2015 to ~~Ps. 124,312~~Ps.162,389 thousand in ~~2014,~~2016, due primarily to a ~~14.1%~~14.9% increase in passenger charges, as a result of ~~a 13.2%~~an increase in ~~passenger traffic. Non-aeronautical~~

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aeronautical tariffs. Non‑aeronautical revenues ~~increased~~decreased by ~~17.3%~~0.3% from ~~Ps. 15,504~~Ps.22,810 thousand in ~~2013~~2015 to ~~Ps. 18,183~~Ps.22,735 thousand in ~~2014,~~2016, due primarily to a ~~55.6% increase~~6.0% decrease in ~~advertising revenues and a 16.4% increase in car parking revenues.~~passenger traffic. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~15.1%~~10.9% from ~~Ps. 123,834~~Ps.166,988 thousand in ~~2013~~2015 to ~~Ps. 142,495~~Ps.185,124 thousand in ~~2014.~~2016. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~1.6%~~18.1% from ~~Ps. 202.3~~Ps.217.2 in ~~2013~~2015 to ~~Ps. 205.6~~Ps.256.5 in ~~2014,~~2016, principally due to the ~~increases~~increase in aeronautical ~~and non-aeronautical~~ revenues.

At the Torreón airport, aeronautical revenues increased by ~~13.4%~~36.9% from ~~Ps. 87,321~~Ps.110,480 thousand in ~~2013~~2015 to ~~Ps. 98,985~~Ps.151,251 thousand in ~~2014,~~2016, due primarily to a ~~15.5%~~39.8% increase in passenger charges, as a result of a ~~12.1%~~16.3% increase in passenger traffic. ~~Non-aeronautical~~Non‑aeronautical revenues increased by ~~11.0%~~10.4% from ~~Ps. 14,114~~Ps.18,191 thousand in ~~2013~~2015 to ~~Ps. 15,671~~Ps.20,087 thousand in ~~2014,~~2016, due primarily to a ~~26.6% increase in retail operations, a 10.8%~~34.6% increase in car ~~parking~~rental revenues and a ~~21.3%~~69.3% increase in ~~advertising~~food and beverage revenues. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by ~~13.0%~~33.2% from ~~Ps. 101,435~~Ps.128,671 thousand in ~~2013~~2015 to ~~Ps. 114,656~~Ps.171,338 thousand in ~~2014.~~2016. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues per workload unit increased by ~~1.0%~~14.5% from 228.3 in 2015 to ~~216.7 from 214.7~~261.4 in ~~2013,~~2016, principally due to the ~~increases~~increase in aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

At the Zacatecas airport, aeronautical revenues increased by ~~10.9%~~30.9% from ~~Ps.51,282~~Ps.66,957 thousand in ~~2013~~2015 to ~~Ps. 56,872~~Ps.87,616 thousand in ~~2014,~~2016, due primarily to a ~~10.1%~~36.9% increase in passenger charges, as a result of a ~~9.6%~~7.2% increase in passenger traffic. ~~Non-aeronautical~~Non‑aeronautical revenues increased by ~~5.5%~~8.8% from ~~Ps. 7,139~~Ps.9,304 thousand in ~~2013~~2015 to ~~Ps. 7,535~~Ps.10,120 thousand in ~~2014,~~2016, due primarily to ~~a 4.6%~~an 11.4% increase in car parking revenues and a ~~8.4%~~51.9% increase in ~~advertising~~food and beverage revenues. The sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues increased by 28.2% from Ps.76,261 thousand in 2015 to Ps.97,736 thousand in 2016. The sum of aeronautical and non‑aeronautical revenues per workload unit at the Zacatecas airport increased by ~~0.6%~~19.5% from ~~Ps. 224.7~~Ps.238.2 in ~~2013~~2015 to ~~Ps. 226.0~~Ps.284.7 in ~~2014,~~2016, principally due to the ~~increases~~increase in aeronautical and ~~non-aeronautical~~non‑aeronautical revenues.

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Industrial Park

At our OMA-Vynmsa Aero Industrial Park, we started to generate revenues in 2016, totaling Ps.4,952 thousand during such year. The price per square meter (3.28 square feet) is denominated in U.S. dollars and collected in the same currency, according to market practices.

Operating Results

Cost of Services

Our cost of services increased by ~~6.6%~~7.7% from ~~Ps. 725,329~~Ps.836,133 thousand in ~~2013~~2015 to ~~Ps. 772,946~~Ps.900,141 thousand in ~~2014,~~2016, mainly asdue to a ~~result~~higher volume of operation which resulted in a ~~3.5%~~17.0% increase in ~~wages~~utilities costs (electricity, cleaning and ~~salaries~~water services) and ~~the recognition of Ps. 1,296 thousand cost~~a 9.6% increase in ~~allowance for doubtful accounts in 2014, compared to a cancellation in the allowance for doubtful accounts of Ps. 3,727 thousand in 2013.~~security and insurance. As a percentage of the sum of aeronautical and ~~non-aeronautical~~non‑aeronautical revenues, cost of services decreased from ~~23.7%~~20.2% in ~~2013~~2015 to ~~22.6%~~17.3% in ~~2014.~~2016.

Major maintenance provision

��

Our major maintenance provision ~~decreased~~increased from ~~Ps. 263,167~~Ps.174,293 thousand in ~~2013~~2015 to ~~Ps. 179,932~~Ps.262,871 thousand in ~~2014, mainly~~2016, due to new estimates of major maintenance requirements in our airports in ~~2013. We are required~~2016, primarily due to ~~perform major maintenance activities to our airports as established by our concession provided by~~inflation adjustments based on the Mexican government. The estimated major maintenance costs are based on our master development programs, which are reviewed and updated every five years. The contractual obligations to maintain and restore the infrastructure of our airports is recognized as a provision in our consolidated statements of financial position based on an estimate of the expenditure that would be required to settle the present obligation at the end of the reporting period. When the effect of the time value of money is material, the amount of the provision equals the present value of the expenditures expected to be required to settle the obligation. Where discounting is used, the carrying amount of the provision increases each period to reflect the passage of time and this increase is recognized as a borrowing cost. After initial recognition, provisions are reviewed at the end of each reporting period and adjusted to reflect currentproducer price index (excluding fuel).

Administrative Expenses

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On an airport-by-airport basis, the principal contributors to our operating income in ~~2014~~2016 were the Monterrey airport ~~(Ps. 270,403~~(Ps.473,916 thousand), the Culiacán airport ~~(Ps. 50,491 thousand), the Acapulco~~

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Table of ~~December 31, 2013, 43.1% of our long-term debt had a floating~~Contents

Operating income for the Tampico airport increased from by 12.9% Ps.32,793 thousand in 2015 to Ps.37,025 thousand in 2016, due primarily to an increase in aeronautical revenue that offset the increase in operating costs. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.74,150 thousand in 2015 to Ps.92,697 thousand in 2016, due to an increase in revenue.

Operating income for the Torreón airport increased by 36.7% from Ps.25,065 thousand in 2015 to Ps.34,268 thousand in 2016, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in the major maintenance ~~provision~~provisions from ~~Ps. 6,188~~Ps.1,431 thousand in ~~2012~~2015 to ~~Ps. 10,466~~Ps.16,916 in 2016 due to an increase in maintenance requirements, and an increase in solidarity fees from Ps.63,345 thousand in ~~2013~~2015 to Ps.80,272 thousand in 2016, principally due to ~~increased maintenance requirements.~~an increase in revenue.

~~Hotel~~

Operating income for ~~our hotel~~the Zacatecas airport increased by 68.5% from ~~Ps. 39,218~~Ps.11,602 thousand in ~~2012~~2015 to ~~Ps. 52,49~~0Ps.19,547 thousand in ~~2013,~~2016, due primarily to an increase in ~~revenues~~aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in the major maintenance provisions from Ps.10,768 thousand in 2015 to Ps.17,315 thousand in 2016, due to ~~higher occupancy rates and tariffs.~~an increase in maintenance requirements.

Border Destinations

Operating income for the Ciudad Juárez airport increased by 69.5% from Ps.34,089 thousand in 2015 to Ps.48,478 thousand in 2016, due primarily to an increase in aeronautical and non-aeronautical revenues. The increase in operating costs mainly reflected an increase in solidarity fees from Ps.63,508 thousand in 2015 to Ps.109,129 thousand in 2016, mainly due to an increase in revenue.

Operating income for the Reynosa airport increased by 77.7% from Ps.14,373 thousand in 2015 to Ps.25,539 thousand in 2016, due primarily to an increase in aeronautical revenue that offset the increase in operating costs. The increase in operating costs mainly reflected an increase in the major maintenance provisions from Ps.9,315 thousand in 2015 to Ps.19,240 thousand in 2016, due to an increase in maintenance requirements.

Hotels

Operating income for our Terminal 2 NH Collection Hotel increased from Ps.60,142 thousand in 2015 to Ps.68,595 thousand in 2016, due primarily to an increase in revenues. The increase in revenues was mainly due to an 11.9% increase in the annual average rate per room, from Ps.1,968 in 2015 to Ps.2,202 in 2016.

Operating income for our Hilton Garden Inn Hotel increased from an operating loss of Ps.984 thousand in 2015 to an operating income of Ps.22,222 thousand in 2016, due to the opening of the hotel in August 2015 and the continued operation of the hotel during 2016.

Industrial Park

In 2016, we registered a loss from the operation of our OMA-Vynmsa Aero Industrial Park of Ps.3,063 thousand, which reflected the opening of the industrial park.

Exchange Gain (Loss)

We had a net exchange loss in ~~2013~~2016 of ~~Ps. 6,198~~Ps.29,177 thousand, as compared to a ~~gain~~loss of ~~Ps. 23,168~~Ps.33,784 thousand in ~~2012,~~2015 due primarily to the depreciation of the peso. The gross exchange loss in 2016 was Ps.70,248 thousand. The exchange rate used to convert our ~~dollar-denominated~~dollar‑denominated liabilities from pesos to U.S. dollars was ~~Ps. 13.0652~~Ps.20.6640 to U.S.$1.00 as of December 31, ~~2013~~2016 and ~~Ps. 12.86~~Ps.17.3398 to U.S.$1.00 as of December 31, ~~2012.~~2015.

Net Interest Expense

~~Net Interest Expense~~

Our net interest expense ~~increased 79.7%~~decreased by 48.4% from ~~Ps. 76,082~~Ps.254,024 thousand in ~~2012~~2015 to ~~Ps. 136,709~~Ps.131,094 thousand in ~~2013,~~2016, mainly due ~~primarily~~ to ~~a 97.4%~~an increase of interest income that resulted from an increase in ~~long-term debt from Ps. 1,505,141 thousand in 2012 to Ps. 2,970,526 thousand in 2013. As~~the discount rate after updating the

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major maintenance provision. During 2016, the average interest rate ~~based on the 28-day (~~~~tasa de interés interbancaria de equilibrio~~~~, or “TIIE”). During 2011, the 28-day TIIE~~ consistently ~~declined,~~increased, from ~~4.8750%~~3.4% on January 1, ~~2011~~2016 to ~~4.7900%~~6.0% on December ~~30, 2011,~~31, 2016, with a yearly average of 4.8231%. During 2012, the 28-day TIIE continued to decline until April, reaching 4.7175%, and it increased for the remainder of the year, closing at 4.8450% on December 31, 2012, with a yearly average of 4.7896%. During 2013, the 28-day TIIE continued to decline, closing at 3.79% on December 31, 2013, with a yearly average of 3.97%4.4%.

Income Taxes

We recorded an income tax ~~benefit~~expense of ~~Ps. 134,876~~Ps.746,782 thousand in ~~2013,~~2016, as compared to an income tax expense of ~~Ps. 288,172~~Ps.512,110 thousand in ~~2012,~~2015, principally due to an increase in income tax due to higher revenues.

Our income tax increased from Ps.298,968 in 2015 to Ps.453,066 in 2016 as a result of a decrease in our net deferred income tax liability from Ps. 156,169 thousand in 2012 to a net deferred income tax asset of Ps. 247,938 thousand in 2013 as a result of the repeal of the Business Flat Tax and a new statutory tax rate in October 2013. As a result of the repeal of the Business Flat Tax, we eliminated our deferred Business Flat Tax liability; and we were able to recognize an additional benefit for recoverable tax on assets, as the shift from Business Flat Tax payment to an Corporate Income Tax payment will result in our ability to recover a portion of tax on assets paid in prior years.

~~Our current income tax~~ increased ~~from Ps. 245,885 to Ps. 267,928 as a result of an increase in taxable income in 2013.~~

~~The decrease in our net deferred tax liability resulted principally from the repeal of the Business Flat Tax in October 2013.~~

revenues.

Our effective tax rate was ~~26.0%~~29.3% in ~~2012~~2015 and ~~(12.6%)~~28.5% in ~~2013.~~2016. The effective tax rates in ~~2013~~2015 and ~~2012~~2016 differed from the statutory rate of 30%, principally as a result of changes in the ~~effect~~estimation of the recoverability of our deferred tax reform under which we eliminated existing deferred Business Flat Tax liabilities as well as recognized a deferred Corporate Income Tax asset for taxes on assets paid in prior years for which we now anticipate we will be able to recover such benefits.assets. Inflationary effects also impacted our effective tax rate, resulting in a lower effective tax rate.

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checked‑baggage inspection equipment acquired by the airports in 2011. The interest rate ~~is three-month~~was three‑month LIBOR plus 95 basis points.

On April ~~11,~~20, 2014, we withdrew U.S.$3.1 million from a line of credit for rescue and firefighting equipment. The line of credit is with UPS Capital Business Credit (guaranteed by ~~Ex-Im~~Ex‑Im Bank) and is valid through ~~July~~January 25, 2019. As of December 31, ~~2014,~~2017, the line of credit amounted to U.S.$ ~~2.7~~0.8 million. The line of credit is guaranteed by the firefighting equipment and the Acapulco, Chihuahua, Culiacan, San Luis Potosí, Zacatecas and Monterrey airports as primary obligors, jointly and severally, with respect to the payment of the principal and interest. The interest rate is LIBOR plus 265 basis points.

On June 16, 2014, OMA issued Ps. 3,000,000 thousand in seven-year notes (certificados bursátiles) at a fixed rate of 6.85% that were registered with the Mexican National Registry of Securities. The objectives of the issuance were to fix interest payments and to extend the maturity profile of debt by prepaying the Ps. 1,300,000 thousand in outstanding floating-rate notes issued under the 2011 Indenture, and to finance the master development programs and strategic investments. The floating-rate Ps. notes issued under the 2011 Indenture were paid on July 11, 2014. The principal covenants and the events of default under the indenture pursuant to which these notes were issued (the “2014 Indenture”) are substantially similar to those under the 2013 Indenture.

Total Indebtedness

The following table sets forth our total indebtedness at the closing of each of the periods indicated:

As of December 31,

Indebtedness

(in thousands of pesos)

2012

Ps. 2,088,209

2013

3,103,535

2014

4,724,401


As of December 31,	Indebtedness
		(in thousands of pesos)
2015	Ps.	4,713,782
2016	Ps.	4,693,865
2017	Ps.	4,633,272

Derivative Financial Instruments

~~As of April 23, 2015, did not execute any operations with derivative financial instruments and we did not have derivatives exposure.~~

~~Other Restrictions~~

As of December 31, ~~2014,~~2017, we were not party to and did not hold any financial derivative instrument.

Other Restrictions

As of December 31, 2017, restrictions imposed by debt instruments did not have any impact on our ability to fulfill our capital and cash obligations.

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~~Investments in Financial Instruments.~~ ~~The Company shall invest its cash balance in a secure and diversified portfolio, including investments of varying terms and with multiple financial institutions, in accordance with the following:~~

·~~The Company shall invest in instruments with a minimum credit rating of MxAA (Mexico) from Standard & Poor’s or its equivalent from a recognized rating agency.~~

·~~The investment period shall never exceed 180 days.~~

·~~No more than 50% of consolidated cash shall be invested in a single financial institution.~~

·~~The financial institution with which the investment is made shall be recognized in the Mexican market and registered with the Mexican National Banking and Securities Commission (~~~~Comisión Nacional Bancaria y de Valores~~~~, or “CNBV”) and shall have had positive earnings for the past three years and a minimum credit rating of MxA (Mexico) from Standard & Poor’s or its equivalent from a recognized rating agency.~~

~~Indebtedness.~~ ~~The Company shall comply with any debt restrictions established in its debt agreements or in related parties debt agreements that include any restriction on the Company’s debt level.~~

~~Derivative Financial Instruments.~~ The Company may only invest in derivative financial instruments that are strictly for coverage, with the objective of setting maximum financial costs and established on a national value. The derivative financial investments shall be tested for effectiveness, the type of coverage shall be designated, and calculations of the Value at Risk or its equivalent will be validated with a third party. The counterparty shall have a minimum risk rating of MxAA (Mexico) or AA (International) from Standard & Poor’s or the equivalent risk rating from a recognized rating agency.

~~Related-Party Transactions.~~ Related-party transactions shall be entered into on market terms in accordance with the opinion of an external expert. Related-party transactions that that exceed Ps. 1,500 thousand in a single transaction or Ps. 10,000 thousand in a series of transactions shall be authorized by the Board of Directors.

~~Loans Between Affiliates.~~ Loans between affiliates shall only be vertical (from the holding company to its subsidiaries and from a subsidiary to the holding company) and never horizontal (between subsidiaries). Such loans shall be made at market rates and within the parameters established in annual price and transfer studies.

~~Payment to Service Providers.~~ ~~Payment to service providers shall be made within 30 calendar days after the date of receipt of the bill;~~ ~~provided~~ ~~that there may be special cases in which this period is shortened or lengthened.~~

~~Share Repurchase.~~ The Company carries out repurchases of its shares in compliance with various policies, including, but not limited to: (i) being up-to-date on payment of cumulative dividends for Series BB shares, (ii) being up-to-date on payment of obligations derived from debt instruments registered with the Mexican National Registry of Securities, (iii) purchasing shares at

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calculations of the Value at Risk or its equivalent will be validated with a third party. The counterparty shall have a minimum risk rating of MxAA in Mexico or the equivalent international risk rating from a recognized rating agency.

·

Related‑Party Transactions. Related‑party transactions shall be entered into on market terms in accordance with the opinion of an external expert. Related‑party transactions that that exceed Ps.1,500 thousand in a single transaction or Ps.10,000 thousand in a series of transactions shall be authorized by the Board of Directors.

·

Loans Between Affiliates. Loans between affiliates shall only be vertical (from the holding company to its subsidiaries and from a subsidiary to the holding company) and never horizontal (between subsidiaries). Such loans shall be made at market rates and within the parameters established in annual price and transfer studies.

·

Payment to Service Providers. Payment to service providers shall be made within 30 calendar days after the date of receipt of the bill; provided that there may be special cases in which this period is shortened or lengthened.

·

Share Repurchase. The Company carries out repurchases of its shares in compliance with various policies, including, but not limited to: (i) being up‑to‑date on payment of cumulative dividends for Series BB shares, (ii) being up‑to‑date on payment of obligations derived from debt instruments registered with the Mexican National Registry of Securities, (iii) purchasing shares at market price, except with regard to public offerings or auctions authorized by the CNBV and (iv) ensuring that there are no relevant events that have not been disclosed to the investing public.

~~market price, except with regard to public offerings or auctions authorized by the CNBV and (iv) ensuring that there are no relevant events that have not been disclosed to the investing public.~~

Principal Uses of Capital

Resources

Our capital resources are mainly used to comply with the master development programs (which include capital expenditures, major maintenance and other expenditures) and to invest in other capital expenditures necessary to accommodate the growth of our business.

The following table details our actual expenditures made during ~~2012, 2013~~2015, 2016 and ~~2014~~2017 and their classification in our consolidated financial statements for such periods:


	For the Year Ended December 31,
	2015	2016	2017
	(in thousands of pesos)
Capital expenditures pursuant to master development programs	347,988	344,772	1,326,458
Other capital expenditures	200,358	184,621	255,501
Total capital expenditures	548,346	529,393	1,581,959
Expenditures made for major maintenance(1)	171,647	102,854	97,584
Other expenditures pursuant to master development programs	12,952	4,575	4,347
Expenditures pursuant to master development programs and other capital expenditures(2)	732,945	636,822	1,683,890

(1)

The amounts disclosed in this table refer to increases in our investments in capital assets and represent both actual cash expenditures and capital additions, which are included in our accounts payable as of the end of each period, as the cash required for the capital additions has not yet been expended.

For the Year Ended December 31,

2012

2013

2014

(in thousands of pesos)

Capital expenditures pursuant to master development programs

321,718

352,688

307,327

Other capital expenditures

70,412

91,783

129,647

Total capital expenditures

392,130

444,471

436,432

Expenditures made for major maintenance provision(2)

201,970

228,849

219,680

Other expenditures pursuant to master development programs

6,908

4,139

11,058

Expenditures pursuant to master development programs and other capital expenditures(1)

601,008

677,458

667,712

(2)

~~(1)~~The amounts disclosed in this table refer to increases in our investments in capital assets and represent both actual cash expenditures and capital additions, which are included in our accounts payable as of the end of each period, as the cash required for the capital additions has not yet been expended.

~~(2)~~ Amounts represent cash outlays for major maintenance, which are provisioned in our major maintenance provision.

In ~~2014,~~2017, we spent ~~Ps. 436,432~~Ps.1,581,959 thousand on capital expenditures, principally ~~for terminal, runway and apron improvements and land.~~in connection with works to improve our terminals. In ~~2013,~~2016, we spent ~~Ps. 444,471~~Ps.529,393 thousand on capital expenditures, principally in connection with works for improvements related to our terminals, runways and aprons. In 2015, we spent Ps.548,346 thousand on capital expenditures, principally for improvements related to our terminals, runways and ~~aprons and machinery and equipment. In 2012, we spent Ps. 392,130 thousand on capital expenditures, principally for improvements related to our terminals, machinery and equipment and runways and~~ aprons.

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We currently intend to fund our commitments pursuant to the master development programs, other capital expenditures and working capital required by our business operations through cash flows generated from our operations ~~and from current indebtedness~~ and through the issuance of additional debt as deemed necessary by our management to comply with our obligations under the master development programs. For a discussion on our master development program obligations, see “Item 4. Information on the Company—Master Development Programs and Capital Expenditures—Revenue Regulation.”

Share Repurchase Program

On April 27, 2007, our shareholders approved the initial creation of a reserve of Ps. 400,000 thousand for our repurchase of Series B shares. On April 14, 2011, April 18, 2012 and April 16, 2013 our shareholders authorized the use of an amount of up to Ps. 400,000 thousand for the operation of our share repurchase program during the year approved and until the next annual shareholders’ meeting. On April 10, 2014, our shareholders authorized the use of an amount of up to Ps. 373,867 thousand for repurchases of Series B shares until the next annual shareholders’ meeting. On April 23, 2015, our shareholders authorized the use of an amount of up to ~~Ps. 241,543~~Ps.241,543 thousand for repurchases of Series B shares until the next annual shareholders’ meeting. On April

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Employee benefits

We provide defined benefit obligations to our employees, for which we recognize a related liability. That obligation is discounted at a discount rate established by reference to ~~year-end~~year‑end market rates

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In our analysis of impairment indicators, we identified indicators of a potential impairment in the Terminal 2 NH Collection Hotel investment. After the analysis, we determined that the Terminal 2 NH Collection Hotel was not impaired and therefore did not record any impairment loss during the period. The Company has not recorded an impairment loss for any periods presented in this Annual Report on Form ~~20-F.~~20‑F.

Major Maintenance Provision

~~Major Maintenance Provision~~

We have an obligation to perform major maintenance activities in our airports, per the terms of our concession agreements. The provision is recognized as accrued at an amount that represents the best estimate of the present value of future disbursements required to settle the obligation. Future disbursements are determined by considering the requirements of our master development programs. The recognition of the major maintenance provision affects the results of the periods in which the infrastructure under concession becomes available for use through the date on which the maintenance and/or repair work is performed.

Off-Balance Sheet Arrangements

Except for operating lease agreements and purchase obligations as disclosed in the contractual obligations table, we are not party to any ~~off-balance~~off‑balance sheet arrangements.

Tabular Disclosure of Contractual Obligations


											Payments Due by Period
	Payments Due by Period												2018		2019-2021		2022-2024			2025-on
			2015		2016-2018		2019-2021		2022-on				Less than							More than
	Total		Less than 1 Year(5)		1-3 Years		3-5 Years		More than 5 Years		Total		1 Year(5)		1-3 Years		3-5 Years			5 Years
	(in thousands of pesos)										(in thousands of pesos)
Master development programs	Ps.	658,067	Ps.	658,067	Ps.	N/A(6)	N/A(6)		N/A(6)		Ps.	3,554,823	Ps.	2,377,074	Ps.	1,177,749	Ps.	N/A	(6)		N/A	(6)
Purchase obligations(1)	26,339		26,339		-		-		-			218,337		71,603		146,734		N/A			N/A
Short-term debt	-		-		-		-		-			—		—		—		—			—
Long-term debt(2)	4,742,032		47,105		125,092		3,069,835		1,500,000			4,644,387		50,852		3,093,535		1,500,000			N/A
Interest(3)	2,170,554		311,448		934,845		806,183		118,078			1,235,772		310,710		806,984		118,078			N/A
Leases(4)	383,379		32,353		85,681		77,037		188,308			369,258		37,053		110,432		86,781			134,992
Total	Ps.	7,980,371	Ps.	1,075,312	Ps.	1,145,618	Ps.	3,953,055	Ps.	1,806,386	Ps.	10,022,578	Ps.	2,847,293	Ps.	5,335,435	Ps.	1,704,859		Ps.	134,992

(1)Reflects minimum fixed annual payment to be paid under our Technical Assistance Agreement of U.S.$3.5 million updated to specific year using an annual U.S. inflation rate of 1.02%, as reported by the U.S. Department of Labor, Bureau of Labor Statistics for the period from June 2016 to June 2017, and assuming an exchange rate of Ps.19.7354 per U.S.$1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, 2017, which is used for operations with related parties in our consolidated financial statements. The amount ultimately to be paid in any year will depend on our profitability. The Technical Assistance Agreement will remain in effect until December 31, 2020. At the end of this term, the Technical Assistance Agreement will be automatically extended for successive one‑year periods unless any party thereto elects otherwise, so long as CONOISA retains at least 12.75% of SETA’s capital. See “Item 7. Major Shareholders and Related‑Party Transactions—Related‑Party Transactions—Arrangements Relating to SETA.”

(2)Debt denominated in U.S. dollars was converted to pesos based on an exchange rate of Ps.19.7354 per U.S.$1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, 2017, which is used for liabilities in our consolidated financial statements.

(3)Interest projected based on forward interest rates (TIIE and LIBOR) and assuming an exchange rate of Ps.19.7354 per U.S.$1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, 2017, which is used for liabilities in our consolidated financial statements.

(4)In October 2008, we acquired 90% of the common stock of Consorcio Grupo Hotelero T2, S.A. de C.V. This entity held a lease agreement with Mexico City International Airport to construct and operate a five‑star hotel at Terminal 2 of Mexico City International Airport, establishing a leasing amount of the higher of Ps.18.5 million per year or a royalty of 18% of total annual revenues. Additionally, we executed a lease agreement with HSBC for our headquarters building with an annual payment of Ps.6.618 million, adjusted every year according to the Mexican national consumer price index.

(5)Amounts for less than one year correspond to obligations for 2018.

(6)In 2020, the fifth year of our current master development program, we will negotiate new master development program commitments for the 2021–2025 period with the Ministry of Communications and Transportation.

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~~(1)~~	Reflects minimum fixed annual payment to be paid under our Technical Assistance Agreement of U.S.$ 3.0 million updated to specific year using an annual U.S. inflation rate of 2.07%, as reported by the U.S. Department of Labor, Bureau of Labor Statistics for the period from June 2013 to June 2014, and assuming an exchange rate of Ps. 14.7348 per U.S.$ 1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, 2014, which is used for operations with related parties in our consolidated financial statements. The amount ultimately to be paid in any year will depend on our profitability. The Technical Assistance Agreement will remain in effect until June 14, 2015 and will be automatically extended for another five-year term, after which it will be automatically extended for successive five-year periods unless any party thereto elects otherwise. At the end of this term, the Technical Assistance Agreement will be automatically extended for successive five-year periods unless any party thereto elects otherwise. Accordingly, the amount set forth in this table solely reflects the contractual amount payable through June 14, 2015. See “Item 7. Major Shareholders and Related-Party Transactions—Related-Party Transactions—Arrangements Relating to SETA.”

~~(2)~~	Debt denominated in U.S. dollars was converted to pesos based on an exchange rate of Ps. 14.7348 per U.S.$ 1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, 2014, which is used for liabilities in our consolidated financial statements.

~~(3)~~	Interest projected based on forward interest rates (TIIE and LIBOR) and assuming an exchange rate of Ps. 14.7348 per U.S.$ 1.00, the FIX exchange rate as reported by the Mexican Central Bank on December 31, 2014, which is used for liabilities in our consolidated financial statements.

~~(4)~~	In October 2008, we acquired 90% of the common stock of Consorcio Grupo Hotelero T2, S.A. de C.V. This entity held a lease agreement with Mexico City International Airport to construct and operate a five-star hotel at Terminal 2 of Mexico City International Airport, establishing a leasing amount of the higher of Ps. 18.5 million per year or a royalty of 18% of total annual revenues. Additionally, we executed a lease agreement with HSBC for our headquarters building with an annual payment of Ps. 5.0 million, adjusted every year according to the Mexican national consumer price index.

~~(5)~~	~~Amounts for less than one year correspond to obligations for 2015.~~

~~(6)~~	In 2015, the fifth year of our current master development program, we will negotiate new master development program commitments for the 2016–2020 period with the Ministry of Communications and Transportation.

Item 6.Directors, Senior Management and Employees

Directors

Our Board of Directors is responsible for the management of our business. Pursuant to our bylaws, our Board of Directors must consist of an odd number of directors determined at an ordinary general meeting of shareholders and is required to have at least 11 members. Our Board of Directors currently consists of 11 directors and one alternate director, each of whom is elected or ratified at the annual shareholders’ meeting. Under the Mexican Securities Law (Ley del Mercado de Valores) and our bylaws, at least 25% of our directors must be independent.

Our bylaws provide that (i) each person (or group of persons acting together) holding 10% of our capital stock in the form of Series B shares is entitled to designate one director, (ii) the holders of Series BB shares are entitled to elect three directors and their alternates pursuant to our bylaws, the Participation Agreement and the Technical Assistance Agreement, and (iii) the remaining members of the Board of Directors are to be elected by the holders of our capital stock (both the Series BB shares and the Series B shares, including those Series B holders that were entitled to elect a director by virtue of their owning 10% of our capital stock).

On April 14, 2011, the shareholders’ meeting was informed of Bernardo Quintana’s decision to step down as Chairman of the Board and approved the election of José Luis Guerrero Álvarez as the new Chairman of the Board. Additionally, it was informed of the resignation of Manuel Francisco Arce Rincón as an Independent Director and approved the designation of Cristina Gil White as an Independent Member of the Board of Directors and of Diego Quintana Kawage as a Member of the Board of Directors.

On October 30, 2011, Salvador Alva Gómez, member of the Board of Directors, resigned as Independent Director because of his appointment as Rector of Sistema Tecnológico de Monterrey. Salvador Alva Gómez served as a member of the Special Committee. At the shareholders’ meeting held on April 18, 2012, Aaron Dychter Poltolarek was approved as an independent director of the Board of Directors. Dr. Dychter served as interim independent director of the Board of Directors from January 24, 2012 until March 25, 2013.

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The following table lists the members of the Board of Directors effective on April 23, ~~2015,~~2018, along with their titles, dates of appointment and ages:

~~Name~~	~~Title~~	~~Director Since~~
Name	Title	Director Since	Age
Diego Quintana Kawage*	Chairman and Director	April 14, 2011	4446
~~Luis Guillermo Zazueta Domínguez~~Guadalupe Phillips Margain*	Director	February 24, 2017	47
Rodrigo Antonio Quintana Kawage*	Director	February 24, 2017	39
Christian Whamond	Director	April 23, 2018	44
Pablo García Aguilar	Director	February 24, 2017	47
Próspero Antonio Ortega Castro	Director	February 24, 2017	46
Ricardo Maldonado Yáñez	Independent Director	~~October 2, 2006~~April 14, 2016	6950
Alberto Felipe Mulás Alonso	Independent Director	October 2, 2006	5457
~~Elsa Beatriz García Bojorges~~Felipe Duarte Olvera	Independent Director	April ~~16, 2013~~14, 2016	4943
~~Ricardo Gutiérrez Muñoz~~Martin Werner Wainfeld	Independent Director	April ~~16, 2013~~23, 2018	7154
~~Carlos Guzmán Bofill~~Luis Solórzano Aizpuru	Independent Director	April ~~16, 2013~~23, 2018	5445
~~José Luis Guerrero Álvarez~~	~~Director~~	~~December 21, 2005~~	71
~~Sergio Fernando Montaño León~~	~~Director~~	~~December 21, 2005~~	67
~~Luis Fernando Zárate Rocha~~	~~Director~~	~~September~~ ~~22, 2000~~	71
Alonso Quintana Kawage*	~~Director~~	~~March~~ ~~14, 2003~~	41
Laurent Galzy*	~~Director~~	~~November 5, 2013~~	57
~~Jacques Follain~~	~~Alternate Director~~	~~December 13, 2006~~	59

*Appointed by SETA

Diego Quintana Kawage. Mr. Diego Quintana Kawage has been a member of our Board of Directors since April 2011 and has acted as its Chairman since April 16, 2013. He has also been a member of the board of directors of Empresas ICA since ~~2008 and is Empresas ICA’s representative for the industrial construction segment and responsible for the airports and housing segments for strategic alliances.~~2008. He joined Empresas ICA in 1995 and served as the General Director of ViveICA, S.A. de C.V., Empresas ICA’s homebuilding company, from 2004 to 2009 and as Finance Director of ViveICA, S.A. de C.V., from 2000 to 2003. He holds an economics degree from the Universidad Anáhuac and has a Master’s of Science in management from Stanford University.

~~Luis Guillermo Zazueta Domínguez~~Guadalupe Phillips Margain. ~~. Mr. Luis Guillermo Zazueta Domínguez~~Ms. Guadulupe Phillips Margain has been the Chief Executive Officer of Empresas ICA, S.A.B. de C.V. since November 2016 and a member of our Board of Directors since October 2006. In 1971, Mr. Zazueta founded Despacho Zazueta Hermanos, S.C., a professional accounting firm advising a wide range of clients on accounting and tax matters. He is also on theEmpresas ICA’s board of directors since April 2016. Previously, she has worked as Chief Restructuring Officer of Altos Hornos de México, S.A.B. de C.V., Seguros Argos, S.A. de C.V., ANA Compañía de Seguros, S.A. de C.V., Prevem Seguros, S.A. de C.V., Almacenadora Gómez, S.A. de C.V., Asecred Unión de Crédito, S.A. de C.V.,Empresas ICA, as well as Vice President of Finance and Risk Management for Grupo ~~Mexicano de Seguros, S.A. de C.V., where he also serves as Chairman of the Audit Committee.~~ HeTelevisa among other positions. She is a member of the ~~College~~boards of ~~Certified Public Accountants~~directors of Innov and ~~registered~~Grupo AXO. She is also an alternate member of the boards of directors of Grupo Televisa and Grupo Financiero Banorte. Ms. Phillips holds a law degree from the Instituto Tecnológico Autónomo de México and an M.A. and Ph.D. from the Fletcher School at Tufts University.

Rodrigo Antonio Quintana Kawage. Mr. Rodrigo Antonio Quintana Kawage has been General Counsel of Empresas ICA since June 2010 and a member of its Board of Directors since November 2016. Previously, Mr. Quintana served as Secretary of OMA’s Board of Directors. He has worked as a ~~Fiscal Public Accountant~~legal intern at Banco de Mexico, Mexico’s central bank, and as an associate in the ~~Ministry~~finance practice of ~~Finance~~Mayer Brown, a global law firm, in its Chicago and ~~Public Credit (~~~~Secretaría~~New York offices. Mr. Quintana joined Empresas ICA’s legal department in 2001, and then rejoined after leaving Mayer Brown in January 2009. Mr. Quintana holds law degrees from the Instituto Tecnologico Autonomo de ~~Hacienda y Crédito Público~~),Mexico in Mexico City and from the ~~Mexican Social Security Institute,~~University of Chicago Law School. He is the ~~Mexican Federal Institute for Workers’ Housing (~~~~Instituto del Fondo Nacional de la Vivienda para los~~brother of Mr. Diego Quintana, the Chairman of OMA’s Board.

~~144~~Christian Whamond. Mr. Christian Whamond has been Portfolio Manager and Director of Corporate Credit at Fintech Advisory Inc. since joining the firm in 2012. He is responsible for directing and managing investments in corporate fixed income and equities. Prior to joining Fintech, Mr. Whamond worked at BTG Pactual where he had responsibility for managing and trading a portfolio of Latin American fixed income corporate credits. He joined BTG Pactual from James Caird Asset Management, a principal investment firm spun-off from Moore Capital where, as Emerging Markets Portfolio Strategist, he co-managed a portfolio of Emerging Markets sovereign and corporate credits. Mr. Whamond worked from 2007 to 2008 for Lehman Brothers’ Global Principal Strategies group (later renamed R3) where he helped manage the Emerging Markets credit portfolio. Prior to this, Mr. Whamond worked at JPMorgan, where he started his career in the Investment Bank in 1996 as a financial analyst and investment banker covering clients from the Buenos Aires office. He was later a Vice President in JPMorgan’s Latin American Mergers and Acquisitions group in New York and afterwards joined the Latin American Sales and Trading group, where he was responsible for trading

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and positioning complex Latin American corporate credits. Mr. Whamond holds an Industrial Engineering degree from the Instituto Tecnológico de Buenos Aires in Argentina.

Pablo García Aguilar. Mr. Pablo García Aguilar was appointed Chief Financial Officer of Empresas ICA in December 2015. Mr. Garcia was the Finance Director for Empresas ICA’s infrastructure division since 2012, where he was responsible for arranging the financings for Empresas ICA’s portfolio of concessioned infrastructure projects and for structuring the sale of minority participations as part of Empresas ICA’s strategy of monetizing its asset portfolio. Prior to joining Empresas ICA, he was Managing Director and head of Project Finance for Latin America at Scotiabank. From 2004 to 2011, he was Senior Vice President for Project Finance for Banco Santander, heading all their Mexico activities. From 1998 to 2004, he served in various capacities at Banco Santander in New York City and Madrid. Mr. Garcia has a B.A. in economics from Florida State University, and an M.A. in Applied Economics and Finance from the University of Michigan.

~~Trabajadores~~Próspero Antonio Ortega Castro.~~, or “INFONAVIT”) and~~ Mr. Prospero Antonio Ortega Castro has been the ~~Federal District.~~Corporate Director of Administration of Empresas ICA since 2015. Previously, he held positions in a number of Empresas ICA’s business units. Prior to joining Empresas ICA in 1995, Mr. ~~Zazueta~~Ortega worked as an auditor at Price Waterhouse. Mr. Ortega holds a degree in ~~public accounting~~Finance and Accounting from the Universidad ~~Iberoamericana.~~de las Americas in Puebla and a Master’s degree in Administration from the Instituto Tecnologico de Estudios Superiores de Monterrey. He also attended an executive program at the Instituto Panamericano de Alta Direccion de Empresas (IPADE) in Mexico City.

Ricardo Maldonado Yáñez. Mr. Ricardo Maldonado Yáñez is a partner in the law firm Mijares, Angoitia, Cortés y Fuentes, S.C. He has over 20 years of experience providing advice and counsel to Mexican and foreign companies on domestic and cross-border merger and acquisition transactions, joint ventures and strategic alliances. He also represents issuers and financial institutions in domestic and international, public and private, debt and equity offerings, and advises clients in the negotiation, structuring and drafting of commercial loans, in complex financings and in infrastructure projects. Mr. Maldonado also represents clients in the Mexican hydrocarbons sector. Mr. Maldonado serves as member and/or secretary of the boards of directors of companies such as Grupo Televisa, Consorcio Ara, Volaris and Grupo Financiero Banorte, among others. Mr. Maldonado holds an undergraduate degree in law from the Universidad Nacional Autónoma de México (UNAM) and an LL.M. from the University of Chicago Law School. He also has specialized in corporate law from the Instituto Tecnológico Autónomo de México (ITAM). He is also a member of Endeavor Mexico.

Alberto Felipe Mulás Alonso. Mr. Alberto Mulás Alonso has been a member of our Board of Directors since October ~~2006. Since~~2006, during such time he has served as a member of our Audit, Best Practices and Finance Committees. From January 2014 through December 2016. Mr. Mulás ~~has~~ served as Mexico country head of Itaú BBA, ~~a subsidiary of Itaú Unibanco (Brazil’s leading private financial group), responsible for developing~~ the ~~bank’s~~ investment and corporate banking ~~presence in the country. Prior~~subsidiary of Itaú Unibanco. Mr. Mulás also headed Mexico’s investment banking practices for both Donaldson, Lufkin & Jenrette Securities Corp. (1999-2001) and Lehman Brothers Inc. (from 1992 to ~~this, in~~1996). Previously, he worked at JP Morgan and Bankers Trust Company. From 2003 ~~he founded and,~~ through 2013, he managed CReSCE Consultores, S.C., a firm specialized in corporate finance, corporate governance and strategic planning. In January 2001, ~~then-president~~then‑president Vicente Fox appointed Mr. Mulás as Undersecretary of Housing at the Mexican Ministry of Social Development (Secretaría de Desarrollo Social) where he prepared the country’s new housing policy, assisted in building the Sociedad Hipotecaria Federal and created the National Housing Commission, becoming its first Commissioner and a member of the presidential cabinet. Prior to 2001, Mr. Mulás’ investment banking career included: heading the Mexican operations of both Donaldson, Lufkin & Jenrette Securities Corp. (1999-2001) and Lehman Brothers Inc. (from 1992 to 1997). He was also a vice-president at JP Morgan and an associate at Bankers Trust Company.cabinet until 2003. Mr. Mulás currently serves as an independent director on various boards, including, ~~Organización Ramirez~~among others: publicly traded companies IENOVA and Fibra Uno; and privately held Grupo Proeza, Organizaciones Ramírez (owner of Cinepolis, Latin America’s largest movie theater chain) and Farmacias del Ahorro (Mexico’s second largest pharmacy chain). In recent years, he has also served as an independent director ~~on the boards of leading public~~in firms such as Grupo Modelo S.A.B. de C.V., Grupo Financiero Santander México, S.A.B. de C.V. and Empresas ~~ICA.~~ICA, and Grupo Comex, among others. Mr. Mulás holds a degree in chemical engineering from the Universidad Iberoamericana and a Master’s in Business Administration from the Wharton School at the University of Pennsylvania.

~~Elsa Beatriz García Bojorges~~Felipe Duarte Olvera. ~~Ms. Elsa Beatriz García Bojorges, a certified public accountant, has been a member~~Mr. Felipe Duarte Olvera is Managing Director for Infrastructure and Energy Sectors in Grupo Financiero Banorte. From 2013 to 2015, he was Managing Director of ~~our Board~~Customer Experience for Grupo Financiero Banorte. Between 2006 and 2012, Mr. Duarte was Undersecretary of ~~Directors since April 2013. She is a researcher~~Transportation at the Ministry of Communications and ~~board member~~Transportation; Undersecretary of Competitiveness and Standards at the Ministry of Economy and Technical Secretary of the ~~Mexican Financial Reporting Standards Board (~~~~Consejo Mexicano de Normas de Información Financiera, A.C.~~~~), which is~~Economic Cabinet in the ~~accounting standard setting body in Mexico. Ms. García is the president of our audit committee, as well as the president~~Office of the ~~audit committee~~President of ~~Empresas ICA,~~Mexico. During that time, he was also a director of Pemex, the ~~president~~Federal Electricity Commission, and the Mexican development banks Nafin and Bancomext.

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Previously he worked for the Mexican government in the Office of the ~~audit committee,~~President for Public Policy and at McKinsey and Co. He is author of “Strategic Cost Management as a ~~member~~Base to Obtain Competitive Advantages”, published by the IMPC. Mr. Duarte has an Master’s in Business Administration from Harvard Business School and degrees in Administration and Public Accounting from the Instituto Tecnológico Autónomo de México (ITAM).

Martin Werner Wainfeld. Mr. Martin Werner Wainfeld was co-head of the ~~corporate governance practices committee,~~Investment Bank for Latin America and Director General of Red de Carreteras de Occidente, S.A.B. de C.V. In 2010, 2011 and 2012, she participated on behalf of Mexico in the Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting hosted by the United Nations Conference on Trade and Development. Previously, she worked as an independent financial consultant. Previously, Ms. García was a partner in the accounting firm Bouzas, Reguera, Gonzalez y Asociados, S.C. She is a lecturer at several universities, accounting associations and companiesGoldman Sachs in Mexico ~~and is a columnist~~from 2000 to 2016. Previously, he was Undersecretary of Finance in Mexico for the ~~Public Accountancy Journal. She hold as an accounting degree with honors from the Universidad Nacional Autónoma de México, as well a diploma~~period 1997-1999. He was in ~~financial engineering. She has been certified by the Mexican Institute of Public Accountants (~~~~Instituto Mexicano de Contadores Públicos~~~~, or “IMCP”) since 1999. In 2012, she received from the IMCP her certification as an accounting specialist.~~

~~Ricardo Gutiérrez Muñoz~~~~. Mr. Ricardo Gutiérrez Muñoz has been a member of our Board of Directors since April 2013. Mr. Gutiérrez has been the president~~charge of the ~~executive committee~~restructuring of ~~Mexichem, S.A.B. de C.V., since 2011,~~Mexico’s external public debt during the 1994-1995 financial crisis. Mr. Werner has 16 years’ experience in investment banking and ~~while he was general director of Mexichem, he was responsible for managing 75 companies~~participated in ~~the chemical~~more than ninety merger and ~~petrochemical sector in Mexico, the Americas, the United Kingdom, Japan~~acquisition and ~~Taiwan. Mr. Gutiérrez was previously general director and~~financing transactions. He is a member of the board of directors of Grupo ~~Industrial Camesa; vice-president of corporate development of Empresas Lanzagorta; general director~~Comercial Chedraui and member of the board of directors of Industrias Synkro and chief financial officer of Indetel/Alcatel. Mr. Gutiérrez holds an accounting degree from the Instituto Politécnico Nacional (Escuela Superior de Comercio y Administración). He also holds a Master’s degree in finance from the Universidad Lasalle.

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executive management program at Instituto Panamericano de Alta Dirección de Empresa (IPADE), a diploma in Project Management from the Project Management Institute, a diploma as a reinforced concrete inspector from the American Concrete Institute and ~~an Executive MBA/Master’s dual degree awarded by ITAM and~~a diploma on management of asbestos containing materials, among other specialization courses in the ~~WP Carey School of Business at Arizona State University.~~

construction sector.

The business address of our directors and executive officers is our principal executive headquarters.

Compensation of Directors and Executive Officers

For ~~2014,~~2017, the aggregate compensation earned by our 2124 officers (including executive officers and airport administrators) was ~~Ps. 73,911~~Ps.70,413 thousand.

At the shareholders’ meeting held on April ~~10, 2014,~~23, 2018, the shareholders approved the following compensation for Directors and Executive Officers: each of the chief executive officer, the chief financial officer, the general counsel and the permanent invitees and secretaries for each meeting of the Board of Directors or committee will receive compensation in the amount of Ps. 50,000, net of any required withholding, for each meeting and committee meeting attended. In addition, Independent Directors will receive a fee of Ps. 4,000, net of any required withholding for each hour they dedicate to our affairs entrusted to them by the Board of Directors outside of board meetings and corporate committee meetings.

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Our bylaws provide that the Committee or Committees responsible for the Audit and Corporate Practices Functions will consist exclusively of Independent Directors and that a minimum of three members shall be appointed by the Board of Directors based on a recommendation from the Chairman of the Board of ~~Directors, and all of such Committee members must also be Independent~~ Directors. Holders of the Series BB shares have the right to propose the appointment of at least one member.

~~If we are~~ controlled by a shareholder or group of shareholders representing 50% or more of our capital stock, the committee that conducts the Corporate Practices Functions will be formed by a majority of Independent Directors.

The Chairman of the Board of Directors will propose to the shareholders meeting one of the Independent Directors as a Chairman of the Audit Committee and the Corporate Practices, Finance, Planning and Sustainability Committee, who should present the requirements of independence, experience, abilities and professional prestige in accordance with Articles 25, 26 and 43 of the Mexican Securities Law.

The Chairman of the Corporate Practices, Finance, Planning and Sustainability Committee shall present an annual report to our Board of Directors with respect to the findings of such Corporate Practices, Finance, Planning and Sustainability Committee, which must include the items mentioned in the “Financial and Planning Functions” section below.

If we are controlled by a shareholder or group of shareholders representing 50% or more of our capital stock, the committee that conducts the Corporate Practices Functions will be formed by a majority of Independent Directors.

Audit Committee

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control system; (viii) analyzing and evaluating the risks factors of the Company, such as the mechanisms for its control; (ix) evaluating whether the investment and financing policies are consistent with the strategic plan of the Company; and (x) evaluating whether the financing projects are consistent with the strategic plan of the Company.

The Chairman of the Corporate Practices, Finance, Planning and Sustainability Committee shall prepare an annual report to our Board of Directors with respect to the findings of this Committee, which shall include (i) observations with respect to relevant directors and officers, (ii) the transactions entered into with related parties, (iii) the remunerations paid to directors and officers and (iv) any permissions granted for a director or officer to take advantage of a business opportunity.

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Workers, an organization formed in 1998 whose members include employees of the Mexican Airport and Auxiliary Services agency as well as of the three other airport groups (the Southeast Group (Grupo Aeroportuario del Sureste, S.A.B. de C.V.), the Mexico City Group (Grupo Aeroportuario de la Ciudad de Mé~~xico)~~xico, S.A. de C.V.) and the Pacific Group (Grupo Aeroportuario del Pacífico, S.A.B. de C.V.)) operating in Mexico. Since July 2008, the labor relations with our employees are governed by a collective labor agreement and negotiated by the local chapter of the union. As is typical in Mexico, wages are renegotiated every year, while other terms and conditions of employment are renegotiated every two years.

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~~(1)~~	In addition to the Series B shares it directly owns, Aeroinvest may be deemed to beneficially own all of our shares owned by SETA by virtue of its ownership of 74.5% of SETA’s capital stock. Aeroinvest and SETA are subsidiaries of Empresas ICA.

~~(2)~~	~~Held in trust with Bancomext. Aeroinvest and SETA are subsidiaries of Empresas ICA.~~

~~(3)~~	~~Based on beneficial ownership report filed with the SEC dated January 6, 2015.~~

~~(4)~~	Members of the Quintana Family, including current Directors, Mr. Alonso Quintana Kawage and Mr. Diego Quintana Kawage, directly own an aggregate of 24,287,210 million Series B shares representing 6.1% of such series. None of the members of the Quintana Family individually directly own more than 5% of any class of our shares. Percentage figures are based on the number of shares outstanding as of the date of the most recently beneficial ownership report.

~~(5)~~	Excludes shares beneficially owned by Mr. Alonso Quintana Kawage and Mr. Diego Quintana Kawage, who own 239,700 and 461,600 Series B shares, respectively, and is included in the percentage owned by the Quintana Family as a group.

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(2)Based on beneficial ownership report filed with the SEC dated December 31, 2017.

(3)Members of the Quintana Family, including Mr. Alonso Quintana Kawage (who served as Director until February 24, 2017) and current Directors Mr. Diego Quintana Kawage and Mr. Rodrigo Quintana, directly own an aggregate of 1,652,810 Series B shares representing 0.4% of our total shares. None of the members of the Quintana Family individually directly own more than 5% of any class of our shares. Percentage figures are based on the number of shares outstanding as of the date of the most recently beneficial ownership report.

(4)Excludes shares beneficially owned by Mr. Diego Quintana Kawage and Mr. Rodrigo Antonio Quintana Kawage, who own 22,000 and 1,052,810 Series B shares, respectively, and is included in the percentage owned by the Quintana Family as a group.

Arrangements Relating to SETA

The rules governing the sale of our Series BB shares to SETA required that SETA place all of its Series BB shares in a trust in order to guarantee SETA’s performance of its obligations under the Technical Assistance Agreement and SETA’s commitment to maintain its interest in us for a specified period. Accordingly, SETA ~~has~~ placed its shares, 8,000,000 Series B shares and 58,800,000 Series BB shares, into ~~the~~a trust with Bancomext ~~Trust.~~(the “Bancomext Trust”). Pursuant to our bylaws, the Technical Assistance Agreement, the Participation Agreement and the Bancomext Trust, SETA was required to retain at least 51% of our shares until June 14, 2007, after which it became entitled to transfer up to one eighth of this 51% during each year thereafter. ~~The terms of the Bancomext Trust will be extended for an additional 15 years if, at the end of the initial 15-year term,~~ SETA holds shares representing more than 10% of our capital stock. SETA may terminate the Bancomext Trust before the second 15-year term begins if: (i) SETA holds less than 10.0% of our capital stock at the end of the initial term; and (ii) the Technical Assistance Agreement has been terminated. If the Bancomext Trust is not terminated within the second 15-year term, SETA is required to instruct Bancomext to transfer the shares to a new trust. SETA iswas required to deposit in the trust any additional shares of our capital stock that it ~~acquires.~~had acquired. On September 15, 2015, SETA’s shareholders unanimously resolved to terminate the Bancomext Trust Agreement, reverting the title of the 8,000,000 Series B shares and 58,800,000 Series BB shares to SETA.

On September 15, 2015, SETA entered into a management and source of payment Trust Agreement with Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero and ADPM (the “Invex Trust”), pursuant to which SETA transferred 8,000,000 Series B shares and 9,034,000 Series BB shares (which were later converted into Series B shares on October 15, 2015) to the trust. The Invex Trust established a mechanism that allowed ADPM to exchange all of its participation in SETA for an equivalent participation in our capital stock and to sell all or part of the Series B or Series BB shares that it acquired without any restrictions as of June 15, 2016. On October 6, 2016, ADPM informed us of its decision to exercise its option to exchange its 25.5% of its shares in SETA, our strategic partner, for Series B shares held by SETA, which represent 4.3% of our total capital stock, in order to sell these shares through an international private placement. On October 10, 2016, ADPM announced the completion of the sale of all the Series B shares received as a result of the option exercise. As a result, the Invex Trust and the consortium agreement entered into among ADPM, CONOISA (as successor in interest to Aeroinvest), and Vinci, S.A. (a corporation organized under the laws of France), on May 16, 2000, as amended and restated on April 13, 2015, which granted certain special corporate rights to ADPM in respect of SETA, were terminated.

Pursuant to our bylaws, SETA (as holder of our Series BB shares) has the right to present ~~the~~to our Board of Directors the name or names of the candidates for appointment as our chief executive officer, to appoint and remove half of our executive officers, which currently include our chief financial officer, our chief operating officer and our commercial director, and to elect three members of our Board of ~~Directors and to propose the appointment of at least one member of each of our committees.~~Directors. SETA (as holder of our Series BB shares) also has the right pursuant to our bylaws to veto certain actions requiring approval of our shareholders (including the payment of dividends, the amendment of our bylaws and the amendment of its right to appoint certain members of our senior management). Additionally, most matters voted on by ~~the~~our Board of Directors require the affirmative vote of the directors appointed by ~~the holder of~~ our Series BB ~~shares. In~~shareholders. If the ~~event of the termination of~~ Technical Assistance Agreement is terminated, the Series BB shares would be converted into Series B shares, resulting in the termination of all of SETA’s special rights. ~~If at any time before~~Before June 14, 2015, if SETA ~~were to hold~~had held less than 7.65% of our capital stock in the form of Series BB shares, it would ~~lose~~have lost its veto rights (but its other special rights would behave been unaffected). If at any time after June 14, 2015, SETA were to hold less than 7.65% of our capital stock in the form of Series BB shares, such shares must be converted into Series B shares, which would cause SETA to lose all of its special rights. As long as SETA retains at least 7.65% of our capital stock in the form of Series BB, ~~shares, whether before or after June 14, 2015,~~ all of its special rights will remain in place. On October 15, 2015, we, at the request of SETA, converted 9,034,000 of our Series BB shares held by SETA to Series B shares, however, after this conversion SETA’s shareholding of Series BB shares remains at 12.6% and its special rights were not affected. In addition, shareholders of SETA have allocated among themselves certain veto rights relating to the exercise by SETA of its veto and other rights, which increases the risk of impasse at the shareholders meeting of SETA and ultimately at our shareholders meetings.

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Our bylaws, the Participation Agreement and the Technical Assistance Agreement also contain certain provisions designed to avoid conflicts of interest between SETA and us, such as approval of certain ~~related-party~~related‑party transactions by our Corporate Practices, Finance, Planning and Sustainability Committee.

Under the terms of the Participation Agreement and the Bancomext Trust, (i) SETA’s key partners, currently Aéroports de Paris Management (ADPM) and Aeroinvest, are required jointly to maintain at least 51% ownership of SETA until June 14, 2015, (ii) Aeroinvest must maintain at least a 25.5% ownership interest in SETA until such date, and (iii) ADPM must maintain at least a 10.0% ownership interest in SETA until such date. To the extent that a key partner acquires shares of SETA in excess of its above-referred interest, such additional interest may be sold without restriction. The terms of the Participation Agreement or the Bancomext Trust may be amended to reduce or eliminate these ownership commitments. If SETA or any of its shareholders defaults on any obligation contained in the trust agreement, or if SETA defaults on any obligation contained in the Participation Agreement or the

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according to the U.S. consumer price index) and ~~amortization)~~4% of our EBITDA, and by an additional 25% for the final two years of the extension, to 3% of our EBITDA. We believe that this structure creates an incentive for SETA to increase our annual consolidated earnings. SETA is also entitled to reimbursement for the ~~out-of-pocket~~out‑of‑pocket expenses it incurs in its provision of services under the agreement.

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Arrangements with Other Affiliates

We periodically engage Empresas ICA and its affiliates to provide construction and related services to us. In ~~2014,~~2017, we contracted ~~Ps. 7,767~~Ps.387,365 thousand for services to be provided by Empresas ICA and its affiliates, periodically. In accordance with our Related Party Guidelines, ~~such~~any of these contracts ~~were~~shall be approved by our Board of Directors upon the recommendation of our Corporate Practices, Finance, Planning and Sustainability Committee and in accordance with Mexican Securities Law. The Committee ~~considered~~considers whether these contracts ~~to be arm’s-length~~are arm’s‑length agreements based on the evaluation of these contracts by the ~~third-party~~third‑party professionals Desarrollo de Ingeniería Civil y Tecnológica, S.A. de C.V. (DICTEC), represented by Jorge Moreno ~~Anaya;~~Anaya and Corporativo de Ingeniería Terrestre, S.A. de C.V. (COITSA), represented by ~~Victor Manuel Corona Ahumada.~~Jorge González Minjares. All companies are independent experts contracted by us to evaluate offers made by Empresas ICA or its ~~affiliates. They determined that Empresas ICA or its affiliates’~~affiliates to determine if such offers ~~were~~are consistent with market prices.

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LEGAL PROCEEDINGS

~~LEGAL PROCEEDINGS~~

General

We are involved in certain legal proceedings from time to time that are incidental to the normal conduct of our business. In addition, the Mexican Airport and Auxiliary Services agency is currently engaged in some legal proceedings related to our airports, none of which is expected to have a material adverse effect on our business.

Amparo Trial in Connection with The Requirement of Municipal Licenses at the Ciudad Juárez Airport

In April 2016, the General Department of Urban Development of the Municipality of Ciudad Juárez notified the entry into force of the Public and Private Parking Lots Operations Regulation, which imposed a series of obligations on the airport as the operator of public parking lots, with the aim of preventing the concessionaire from continuing to provide parking lot services through charge-by-entry.

Subsequently, on April 19, 2016, municipal authorities executed the closure of the public parking lots in the airport claiming the lack of a license to operate and non-compliance with the corresponding regulations.

An amparo constitutional claim was filed against such acts challenging the closure and claiming the unconstitutionality of the municipal regulation. The trial was admitted and in December 2016 the Court issued a resolution in favor of the airport indicating a lack of municipal authority due to the application of the regulations in an area where only the federal government has jurisdiction.

Currently, there is an appeal pending against the decision that granted amparo protection to the airport.

In April 2016, the municipal authority of Ciudad Juárez carried out verification visits at the business premises located at the airport to request the municipal operating licenses, and subsequently ordered the closure of ten businesses in the airport for not having such license.

Against such acts, an amparo trial was filed by the Ciudad Juárez airport to challenge the closure and claim the unconstitutionality of the municipal order. The claim was admitted and the court decided in favor of the airport on November 24, 2017, indicating a lack of municipal authority due to the application of municipal regulations in an area where only the federal government has jurisdiction. This decision concluded the trial in favor of the airport.

Disputed Land Ownership at the Ciudad Juárez Airport

Parties purporting to be former owners of land comprising a portion of the Ciudad Juárez airport initiated legal proceedings against the airport to reclaim the land, alleging that it was improperly transferred to the Mexican government. As an alternative to recovery of this land, the claimants also sought monetary damages of U.S.$120.0 million. On May 18, 2005, a Mexican court ordered us to return the disputed land to the plaintiffs. However, that decision and three subsequent constitutional claims permitted the ruling to be reconsidered, and as a result of such constitutional claims, the original claimants must now include the Ministry of Communications and Transportation as a party to the litigation, as the Ministry of Communications and Transportation is the grantor of the concession title to the Ciudad Juárez airport. On August 28, 2009, the federal government filed its answer to the claim, in which it requested that the trial be removed to federal court. In May 2010, the Court of Appeals granted the federal government’s request, giving the Federal Courts jurisdiction to hear the ~~lawsuit~~.lawsuit. The plaintiffs filed a constitutional claim against this ruling before the Federal District Court in Chihuahua and on November 29, 2010, the District Court in Chihuahua confirmed the Court of Appeals ruling. Against this ruling, the plaintiffs filed an appeal ( (recurso de revisión) before the Federal District Circuit Court and on July 7, 2011, the Federal District Circuit Court ruled that the plaintiffs’ constitutional claim should be heard by a District Court in Ciudad Juárez. In October 2011, the District Court in Ciudad Juárez denied the plaintiffs’ constitutional claim, against which, in November 2011, the plaintiffs filed a new appeal (recurso de revisión) before the Federal District Circuit Court. On January 7, 2012, the Federal District Circuit Court confirmed that the District Court in Ciudad Juárez had jurisdiction to hear the claim. On April 30, 2012, the Federal District Court in Ciudad Juárez ruled that it did not have jurisdiction to hear the claim, and the determination of jurisdiction was sent to the Mexican Supreme Court. However, after the Federal District Court denied jurisdiction, a

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conflict arose that has been resolved by the Circuit Court. The Federal District Circuit Court ruled on January 13, 2013 that a state or local court must hear the lawsuit rather than a federal court. On July 8, 2016, the local court in Ciudad Juárez ruled that the claims against the Ciudad Juárez airport are inadmissible, and on October 21, 2016, the claimants filed an appeal before the Appellate Court in Chihuahua against the court’s determination. On July 31, 2017, the First Civil Court overturned the lower court’s decision and ruled in favor of the plaintiffs, requiring the Mexican government to pay restitution to the plaintiffs for their loss of property and in accordance with the lawsuit. The ~~lawsuit is still underway at this time.~~Mexican government filed an amparo trial to appeal the decision. As of April ~~23, 2015,~~20, 2018, the final resolution of this dispute remains pending.

In the event that any subsequent action results in a decision substantially similar to the May 18, 2005 court order or that is otherwise adverse to us, and the Mexican government does not subsequently exercise its power of eminent domain to retake possession of the land for our use, which we believe the terms of our concessions would require, our concession to operate the Ciudad Juárez airport would terminate. In ~~2014,~~2017, the Ciudad Juárez airport represented ~~4.4%~~4.5% of our consolidated total revenues. Although we believe and have been advised by the Ministry of Communications and Transportation that under the terms of our concessions the termination of our Ciudad Juárez concession would not affect the validity of our remaining airport concessions and that the Mexican government would be obligated to indemnify us against any monetary or other damages resulting from the termination of our Ciudad Juárez concession or a definitive resolution of the matter in favor of the plaintiffs, we may not be so indemnified. We have not recorded any provision relating to this claim, as it is not probable that an outflow of resources embodying economic benefits will be required to settle this obligation.

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On April 17, 2013, the Third District Judge permanently suspended the city’s order, pending a resolution of whether the city of Torreón has the authority and power to inspect the commercial and advertising areas within the Torreón airport. In December 2013 a Federal District Court granted relief to the airport, and instructed the authorities to invalidate the municipal proceedings because they lacked the capacity to demand or require licenses inasmuch as the airport is an exclusively federal facility subject to

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December 7, 2017, the ~~Federal laws. The authorities challenged~~court affirmed the ~~federal verdict~~lower court’s ruling and ~~the lawsuit is still being heard by the Federal Circuit Court~~ (~~Tribunal Colegiado de Circuito~~).

~~On April 24, 2014, the appeal of the city of Torreón was~~ decided ~~and the Federal Circuit Court ruled, in a final ruling,~~ in favor of the ~~Torreón airport, ruling that the city~~Ministry of ~~Torreón lacked the authority to impose the airport operating licensing requirement.~~

~~Order to Stop Sales in Commercial Premises Located in the Reynosa Airport~~

~~In October 2014, the municipality of Reynosa issued an inspection order~~Communications and ~~imposed a stoppage on the sales of alcoholic beverages in commercial premises located at~~Transportation, with the Reynosa airport as ~~it had not obtained a state license for~~an interested third party. This decision concluded the ~~sale of alcoholic beverages.~~trial.

The airport filed a constitutional claim lawsuit against these acts to challenge the closure and unconstitutionality of municipal regulations and the applied state law. The lawsuit was rejected because the District Judge held that the concession holder did not had a valid basis for filing a constitutional claim lawsuit. This ruling was challenged by filing an appeal, which is currently awaiting a ruling. The Reynosa airport also filed a constitutional claim lawsuit against these closure acts to support the affected leaseholder. This proceeding was accepted, although the constitutional hearing has yet to be scheduled.

As these municipal license requirements do not include economic requirements, the legal risk and impact for the Company are valued in all such legal proceedings. Consequently, we have not recorded a provision for these lawsuits because legal precedents involving favorable rulings in this regard also exist.

~~Order to Close Industrial Park Construction, Gas Station and Strip Mall at Monterrey International Airport~~

On November 19, 2013, the Apodaca municipality executed an inspection order and closed the commercial premises located in the Monterrey airport, which include a strip mall, gas station and industrial park, because they did not have multiple licenses for ground use and/or construction. A constitutional claim lawsuit was filed against these acts challenging this shutdown and the constitutionality of the municipal order.

The court granted a provisional suspension ordering that municipal authorities remove the barriers and enable the businesses to continue operations. On October 14, 2014, the District Court ruled in favor of the Monterrey airport. On November 19, 2014, the Apodaca municipality filed an appeal before the Federal Circuit Court against the judgment.

On February 4, 2015, the Apodaca municipality filed an appeal with the Federal District Circuit Court to exercise its competence to hear and determine the appeal against the October 14, 2014 judgment of the District Court. On March 6, 2015, the First Chamber of the Mexican Supreme Court decided to consider exercising its competence to hear the appeal.

Moreover, in February 2014, the Apodaca municipality filed a constitutional controversy lawsuit against the federal government for its approval of the Monterrey airport’s 2011-2015 master development program as well as the authorization of the construction projects, including the hotel at Terminal B, protected under ~~amparo~~. The Mexican Supreme Court agreed to hear the constitutional controversy claim but denied the Apodaca municipality’s petition for the suspension of the challenged authorizations. However, this challenge was decided against the Apodaca municipality denying their petition to suspend the construction projects carried out at the Monterrey airport under the master development program.

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On April 14, 2011, our shareholders approved a ~~new~~ dividend policy, applicable to our results of operations starting in 2011.

Our dividend policy seeks to ensure the tax efficient payment of dividends. Because any dividend we expect to pay will likely be subject to the ~~corporate-level~~corporate‑level dividend tax referred to above, our dividend policy has been designed to ensure that any ~~corporate-level~~corporate‑level dividend tax we pay may be applied by us as a credit against its projected future corporate income tax liability in the year paid and in the subsequent two years.

Our dividend policy has a fixed and a variable component paid annually in equal quarterly installments. The fixed component is ~~Ps. 325,000~~Ps.325,000 thousand per year. The variable component will be based on the funds available for distribution in excess of the fixed component.

~~166~~

143

On April 23, 2018, our shareholders approved a cash dividend of Ps.1,600 million, equal to Ps.4.06 per share, to be paid in cash for each share outstanding in one payment, no later than ~~July and September 2014 and one final payment of Ps. 0.50 per share no later than November 2014.~~

June 20, 2018.

Certain distributions that we make to our shareholders other than capital reimbursements (in the manner described above), including amortization of shares or otherwise, would be subject to taxation in Mexico, including withholding taxes. The tax rates applicable and the method of assessing and paying taxes applicable to any such ~~non-dividend~~non‑dividend distributions will vary depending on the nature of the distributions.

Item 9.The Offer and Listing

SHARE PRICE HISTORY

The following table sets forth, for the periods indicated, the highest and lowest closing prices for (i) the ADSs on the NASDAQ in U.S. dollars and (ii) our common shares on the Mexican Stock Exchange in pesos. For more information, see “Item 3. Key Information—Exchange Rates” for the exchange rates applicable during the periods set forth below. The information set forth in the table below reflects actual historical amounts at the trade dates and has not been restated in constant pesos. ~~As of the date of this report, we do not use the services of a market maker.~~

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	U.S.$ per ADS(1)		Pesos per Series B Share
	Lowest	Highest	Lowest	Highest
2013	22.47	34.35	35.99	52.51
2014	24.20	40.13	40.43	68.82
2015
First quarter	34.10	39.42	65.42	74.29
Second quarter	37.49	42.00	72.07	81.15
Third quarter	37.69	44.91	78.29	91.54
Fourth quarter	35.74	43.02	77.19	88.78
2016
First quarter	34.04	46.06	77.72	99.42
Second quarter	44.35	47.83	97.06	109.29
Third quarter	44.25	52.54	107.50	120.27
Fourth quarter	33.99	48.97	87.76	117.89
2017
First quarter	30.14	43.40	82.65	101.40
Second quarter	41.80	48.18	98.41	109.68
Third quarter	44.39	52.10	100.89	114.28
Fourth quarter	37.79	44.44	90.27	101.96
Monthly Prices
October 2017	39.27	44.44	94.18	100.99
November 2017	37.79	41.61	90.27	96.90
December 2017	40.16	42.57	93.35	101.96
January 2018	40.56	43.69	94.97	105.26
February 2018	39.16	41.58	92.11	96.78
March 2018	38.75	40.90	88.65	95.01

(1)

Eight Series B shares per ADS.

U.S.$ per ADS(1)

Pesos per Series B Share

Lowest

Highest

Lowest

Highest

2010

11.51

16.27

18.71

24.98

2011

12.25

18.85

20.08

27.40

2012

First quarter

13.05

16.79

21.85

27.00

Second quarter

13.45

16.62

23.60

27.65

Third quarter

16.05

18.10

27.00

29.83

Fourth quarter

17.88

23.81

28.69

37.86

2013

First quarter

22.47

33.4

35.99

49.85

Second quarter

22.83

34.35

37.97

52.51

Third quarter

24.85

30.79

40.01

48.57

Fourth quarter

25.38

28.4

41.42

46.75

2014

First quarter

24.20

28.95

40.43

47.43

Second quarter

28.60

33.11

47.01

54.03

Third quarter

31.55

35.67

51.51

59.03

Fourth quarter

33.50

40.13

56.95

68.82

Monthly Prices

October 2014

33.58

39.60

56.95

67.09

November 2014

36.57

40.13

63.55

68.82

December 2014

33.50

37.38

61.35

68.70

January 2015

35.16

38.78

65.42

70.77

February 2015

36.75

39.42

68.63

73.62

March 2015

34.10

38.90

66.44

74.29

~~(1)Eight Series B shares per ADS.~~

Sources: Mexican Stock Exchange and NASDAQ.

TRADING ON THE MEXICAN STOCK EXCHANGE

The Mexican Stock Exchange, located in Mexico City, is the only stock exchange in ~~Mexico~~.Mexico. Founded in 1894, it ceased operations in the early 1900s and was reestablished in 1907. The Mexican Stock Exchange is organized as a corporation (sociedad anónima bursátil de capital variable) whose shares are held by brokerage firms. These firms are exclusively authorized to trade on the floor of the Exchange. Trading on the Mexican Stock Exchange takes place

144

exclusively through an automated ~~inter-dealer~~inter‑dealer quotation system known as SENTRA, which is open between the hours of 8:30 a.m. and 3:30 p.m., Mexico City time, each business day. Each trading day is divided into six trading sessions with ~~10-minute~~10‑minute periods separating each session. Trades in securities listed on the Mexican Stock Exchange can, subject to certain requirements, also be made outside the Exchange. Due primarily to tax considerations, however, most transactions in listed Mexican securities are made through the Exchange. The Mexican Stock Exchange operates a system of automatic suspension of trading in shares of a particular issuer as a means of controlling excessive price volatility. The suspension procedures will not apply to shares that are directly or indirectly (through ADSs or CPOs) quoted on a stock exchange outside Mexico.

Settlement is effected two business days after a share transaction on the Mexican Stock Exchange. Deferred settlement, even if by mutual agreement, is not permitted without the approval of the CNBV. Most securities traded on the Mexican Stock Exchange are on deposit with Indeval, a privately

~~169~~

owned central securities depositary that acts as a clearing house, depositary, custodian and registrar for Mexican Stock Exchange transactions, eliminating the need for the physical transfer of shares.

The Mexican Stock Exchange is one of Latin America’s largest exchanges based on market capitalization, but it remains relatively small and illiquid compared to major world markets and therefore subject to greater volatility.

As of December 31, ~~2014,~~2017, 141 Mexican companies, excluding mutual funds, had equity listed on the Mexican Stock Exchange. In ~~2014,~~2017, the 10 most actively traded equity issues (excluding banks) represented approximately ~~64.8%~~65.37% of the total volume of equity issues traded on the Mexican Stock Exchange. Although the public participates in the trading of securities, a major part of the activity of the Mexican Stock Exchange reflects transactions by institutional investors. There is no formal ~~over-the-counter~~over‑the‑counter market for securities in Mexico.

Reporting Obligations

~~Reporting Obligations~~The

Bolsa Institucional de Valores, or the BIVA, is a new Mexican stock exchange scheduled to launch operations in 2018, following the receipt of Mexican regulatory approvals. Once operational, the BIVA will become the second stock exchange in Mexico and compete with the existing Mexican Stock Exchange. According to rules recently published by the CNBV, the securities of companies that trade on the Mexican Stock Exchange will be required to also trade on the BIVA. Under CNBV rules, the BIVA and the Mexican Stock Exchange may suspend trading on a series of securities upon the occurrence of unusual trading activity. Furthermore, the suspension of trading of a series of securities on one exchange will automatically trigger the suspension of their trading on the other exchange.

As a company with securities listed on the Mexican Stock Exchange and NASDAQ, we are subject to several reporting and disclosure obligations regarding corporate information and material events set forth by the Mexican and U.S. securities laws, which include filing quarterly and annual financial reports, as well as corporate information and disclosing material events to the regulatory authorities in Mexico and the United States.

For the last three years, we have duly and timely filed all the information that we are obligated to file in order to comply with the Mexican and U.S. securities laws.

Material Changes to the Rights Conferred by Our Securities Registered with the Mexican National Registry of Securities and Traded in the Mexican Market

As of December 31, ~~2014,~~2017, there have been no material changes to the rights conferred by our securities registered with the Mexican National Registry of Securities and traded in the Mexican market.

Item 10.Additional Information Bylaws

~~Bylaws~~

This section summarizes certain provisions of Mexican law and our bylaws (estatutos sociales), a copy of which is attached to this Form ~~20-F~~20‑F as Exhibit 1.1.

At our Extraordinary Shareholders’ Meeting held on October 2, 2006, our shareholders adopted resolutions amending and restating of our bylaws to organize the company as a sociedad anónima bursátiland to conform our

145

bylaws to the provisions of the Mexican Securities Law. Some of the relevant changes included the enhancement of certain provisions applicable to the corporate governance of public companies, clarification of certain provisions relating to directors’ and officers’ liability and the elimination of restrictions on ownership of our shares.

Our bylaws were further amended in the shareholders’ meeting held on April 3, 2008. In particular, the primary change concerned the elimination of the Nominations Committee and transfer of such Committee’s duties to the shareholders meeting and, where appropriate, to the Board of Directors.

At our shareholders’ meetings held on May 31, 2017, April 23, 2015 and April 10, 2014, ~~April 16, 2013 and April 18, 2012,~~ our bylaws were ~~further~~ amended to ~~reflect~~update the amounts of fixed minimum common stock ~~after~~to reflect the decrease on the fixed portion of our capital stock after the cancellation of shares held in treasury and capital reimbursements.

~~170~~

At our Extraordinary Shareholders’ meeting, held on April 23, 2015, our shareholders, at the request of one of our non-controlling shareholders, voted on, among other items, the renewal or non-renewal of the Technical Assistance Agreement. As a result of not reaching the majority vote required for its non-renewal, the Technical Assistance Agreement will be automatically renewed for another five-year term.

Purposes

The purposes of the Company include the following:

·

to acquire shares of or interests or participations in privately or ~~state-owned~~state‑owned companies engaged in the management, operation (including the provision of aeronautical, complementary, commercial and construction services) and/or development of civilian airports pursuant to the Mexican Airport Law (Ley de Aeropuertos) and its regulations and to participate in the capital stock of companies engaged in the provision of all types of services;

	·
·	to receive from any other Mexican or foreign entity, company or individual, and to provide to any company in which it may hold any interest or participation or to any other entity, company or individual, any services required to achieve its or their purposes;

	·
·	to apply for and obtain, by any means, directly or through its subsidiaries, concessions and permits to manage, operate, build and/or develop airports;

	·
·	to obtain, acquire, use, transfer and grant or secure licenses in respect of all types of patents, invention certificates, registered trademarks, trade names, copyrights or any rights associated therewith, whether in Mexico or abroad;

	·
·	to obtain all types of secured and unsecured loans or credit facilities and to grant loans to any association, company, entity or individual in which it holds more than 50% of the capital stock with voting rights or which is otherwise under its control; and

	·
·	to provide all types of collateral and guaranties in respect of any credit instrument issued or obligation assumed thereby or by any entity in which it holds more than 50% of the shares of stock with voting rights or which is otherwise under its control.

Election of Directors

The Board of Directors is responsible for the oversight of our business. Pursuant to our bylaws, the Board of Directors must consist of an odd number of directors determined at an ordinary general meeting of shareholders and is required to have at least 11 members. Our Board of Directors currently consists of 11 directors and 1one alternate director, each of whom is elected at the annual shareholders’ meeting. Under the Mexican Securities Law and our bylaws, at least 25% of our directors must be independent. Under Mexican law, the determination as to the independence of our directors made by our shareholders’ meeting may be contested by the CNBV.

At each shareholders’ meeting for the election of directors (i) each person (or group of persons acting together) holding 10% of our capital stock in the form of Series B shares is entitled to designate one director, (ii) the holders of Series BB shares are entitled to elect three directors and their alternates pursuant to our bylaws, the Participation Agreement and the Technical Assistance Agreement and (iii) the remaining members of the Board of Directors are to be elected by the holders of our capital stock (both the Series BB shares and the Series B shares, including those Series B holders that were entitled to elect a director by virtue of their owning 10% of our capital stock). The candidates to be considered for election as directors by the shareholders will be proposed to the shareholders’ meeting by the Board. Any slate of

~~171~~

candidates proposed by the Board shall include independent directors to the extent required by the Mexican Securities Law and other applicable law.

146

~~Under the Participation Agreement, NAFIN, as trustee~~Table of the Ministry of Communications and Transportation, Bancomext, Constructoras ICA, S.A. de C.V. and SETA agreed that three of our directors are to be elected by SETA, as holder of the Series BB shares and three are to be elected by Constructoras ICA, S.A. de C.V. Contents

Five of our directors are independent.

Authority of the Board of Directors

The Board of Directors has broad authority to manage the company. Pursuant to the Mexican Securities Law, the Board of Directors is required to approve, among other matters:

·

our general strategy;

	·
·	the business plan and the investment budget on an annual basis;

	·
·	capital investments not considered in the approved annual budget for each fiscal year;

	·
·	the proposal to increase our capital or that of our subsidiaries;


·		our ~~five-year~~five‑year master development program and any amendments thereto for each of our airports to be submitted to the Ministry of Communications and Transportation;

	·
·	the voting of the shares we hold in our subsidiaries;

	·
·	our management structure and any amendments thereto;

	·
·	the election of our chief executive officer from the candidates proposed by the Series BB directors and the approval of his or her compensation or his or her removal for cause;

	·
·	any transfer by us of shares in our subsidiaries;

·

subject to the recommendation of the Corporate Practices, Finance, Planning and Sustainability Committee, among other matters, (i) the guidelines for the use of the assets of our subsidiaries, (ii) any transaction with related parties, subject to certain limited exceptions, (iii) the authorization for any member of our Board of Directors, principal officers or other relevant persons to take advantage of business opportunities for his own benefit or for the benefit of third parties that originally corresponded to us or the companies under our control or in which we have a significant influence and that exceed the limits set forth under item (vii) of the next paragraph and (iv) the establishment of guidelines for the appointment and compensation of executive officers, which must be consistent with the guidelines established in the Technical Assistance Agreement;

·

subject to the recommendation of the Audit Committee, among other matters, (i) our financial statements and those of our subsidiaries, (ii) subject to certain limited exceptions, the acquisition and sale of our own stock, (iii) guidelines for the granting of loans or any type of credits or guarantees to any related party, (iv) guidelines regarding our internal controls, internal audits and those of our subsidiaries, (v) our accounting policies, including adjustments to our accounting principles to conform to or recognize those issued by the Commission, (vi) the hiring and termination of our external auditors and (vii) unusual or ~~non-recurrent~~non‑recurrent transactions and any transactions or series of related transactions during any calendar year that involve (a) the acquisition or sale of assets with a value equal to or

~~172~~

exceeding 5% of our consolidated assets or U.S.$20.0 million, or (b) the giving of collateral or guarantees or the assumption of liabilities equal to or exceeding 5% of our consolidated assets, U.S.$40.0 million or in excess of the debt level set forth in the annual business plan, which must not exceed a 50% ~~debt-to-capital~~debt‑to‑capital ratio;

	·
·	the creation of, and assignment of responsibilities to, new committees or changing the responsibilities assigned to existing committees;

147

	·
·	the appointment of members of the Corporate Practices, Finance, Planning and Sustainability Committee in which at least one of its members shall be appointed from those proposed by the members of the Board of Directors appointed by the holders of Series BB shares;

	·
·	proposals to the shareholders’ meetings regarding (i) our dividend policy and (ii) the use of our retained earnings;

	·
·	subject to certain conditions, the appointment of provisional members of the Board of Directors, without the need for a shareholders’ meeting for such provisional appointment;

·

the presentation at a general ordinary shareholders’ meeting of any of the following agenda items: (i) the annual reports of the Audit Committee and the Corporate Practices, Finance, Planning and Sustainability Committee, (ii) the annual report given by the chief executive officer, the opinion of the external auditor and the opinion of the Board of Directors on the content of such report, (iii) the report containing the main accounting and information guidelines used for the preparation of our financial information and (iv) the report on the operations and activities in which the Board of Directors had intervened pursuant to the Mexican Securities Law;

	·
·	the appointment, removal, duties and responsibilities of our internal auditor;

	·
·	policies with regard to the disclosure of information to our shareholders, the market and to other members of the Board of Directors and relevant officers as well as decisions with regards to specific information to be released;

	·
·	actions to be taken in order to rectify any known irregularity and to implement any corrective measures;

	·
·	the terms and conditions subject to which the chief executive officer shall exercise his power and duties; and

	·
·	resolutions instructing our chief executive officer to disclose material information to the general public.

Under our bylaws, resolutions at meetings of the Board of Directors with respect to any of the items listed above will be valid only if approved by the members of the Board of Directors elected by the holders of the Series BB shares.

Powers of Series BB Directors

The Series BB directors are entitled to: (i) nominate the candidates for chief executive officer to our Board of Directors, (ii) move for the removal of our chief executive officer, (iii) appoint and remove half of our executive officers in accordance with the guidelines established in the Technical Assistance Agreement and the guidelines approved by our Board of Directors and (iv) appoint at least one member to each of our committees.

~~173~~

In addition, any matter requiring approval of the Board of Directors under our bylaws, as indicated above, will require the approval of a majority of the directors appointed by the Series BB shareholders for so long as the Series BB shares represent at least 7.65% of our capital stock.

Our Capital Stock

Pursuant to our bylaws, our capital stock has a variable portion. As of the date of this report, the Company has a fixed minimum capital stock, without withdrawal rights, of Ps. ~~1,508,446,826.75~~333,179,234, represented by ~~400,000,000~~393,770,973 ordinary nominal Class I shares, without par value, which are fully subscribed and paid, of which ~~341,200,000~~344,004,973 are Series B shares and ~~58,800,000~~49,766,000 are Series BB shares. For the last three years, no part of our capital stock has been paid ~~in-kind.~~in‑kind.

148

Our capital stock has been modified during the last three years as a consequence of the following events:

·

On April ~~18, 2012,~~23, 2015, our shareholders approved a decrease in the fixed portion of our capital stock in the amount of ~~Ps. 500,000~~Ps.1,200,000 thousand, to be conducted without decreasing the number of shares, by reimbursing the shareholders in the amount of ~~Ps. 1.25~~Ps.3.00 per share. As a consequence, the fixed portion of our capital stock decreased from ~~Ps. 4,408,446,826.75~~Ps.1,508,446,826.75 to ~~Ps. 3,908,446,826.75; and~~Ps.308,446,826.75.


·		On ~~April 16, 2013,~~May 31, 2017, our shareholders approved the cancellation of 6,229,027 Series B shares that were repurchased by the Company in accordance with Article 56 of the Mexican Securities Law, reducing the capital stock of the Company. As a ~~decrease in~~result of the cancellation of shares, the fixed ~~portion~~minimum social capital, fully paid-in and subscribed, totals Ps.303,643,946, represented by 393,770,973 ordinary shares, nominative and without par value, of ~~our capital stock in the amount of Ps. 1,200,000 thousand, to be conducted without decreasing the number of~~which 49,766,000 are Series BB shares ~~by reimbursing the shareholders in the amount of Ps. 3.00 per share. As a consequence, the fixed portion of our capital stock decreased from Ps. 3,908,446,826.75 to Ps. 2,708,446,826.75.~~

·	On April 10, 2014, our shareholders approved a decrease in the fixed portion of our capital stock in the amount of Ps. 1,200,000 thousand, to be conducted without decreasing the number of shares, by reimbursing the shareholders in the amount of Ps. 3.00 per share. As a consequence, the fixed portion of our capital stock decreased from Ps. 2,708,446,826.75 to Ps. 1,508,446,826.75.and 344,004,973 are Series B shares.

We have not conducted any issuance of shares during the last three years, and we are not beneficiaries of any derivative instruments payable ~~in-kind,~~in‑kind, which have Series B or Series BB shares, or any other security representing those shares, as underlying assets.

The following table sets forth our authorized capital stock and our issued and outstanding capital stock as of April 23, ~~2015:~~2018:

Authorized

Issued and Outstanding

Capital Stock:

Series B shares

341,200,000

336,144,850

Series BB shares

58,800,000

58,800,000

Total

400,000,000

394,944,850
(1)


	Authorized	Issued and Outstanding
Capital Stock:
Series B shares	344,004,973	343,680,466
Series BB shares	49,766,000	49,766,000
Total	393,770,973	393,446,466	(1)

(1)The difference between our authorized capital stock and our issued and outstanding capital stock constitutes ~~5,055,150~~324,507 shares repurchased and held by the Company.

All ordinary shares confer equal rights and obligations to holders within each series. The Series BB shares have special voting and other rights described below.

~~174~~

Our bylaws provide for the issuance of the following shares, which have the characteristics described below:

·

Series B. Series B shares currently represent ~~85.3%~~87.4% of our capital. Series B shares may be held by any Mexican or foreign natural person, company or entity.


·		Series BB. Series BB shares currently represent ~~14.7%~~12.6% of our capital. Series BB shares, which are issued pursuant to Article 112 of the Mexican General Law of Business Corporations (Ley General de Sociedades Mercantiles), may be held by any Mexican or foreign natural person, company or entity.

Under the Mexican Airport Law and the Mexican Foreign Investments Law (Ley de Inversión Extranjera), foreign persons may not, directly or indirectly, own more than 49% of the capital stock of a holder of an airport concession unless an authorization from the Mexican Commission of Foreign Investments (Comisión Nacional de Inversiones Extranjeras) is obtained.

Voting Rights and Shareholders’ Meetings

Each Series B share and Series BB share entitles the holder to one vote at any general meeting of our shareholders. Holders of Series BB shares are entitled to elect three members of our Board of Directors.

Under Mexican law and our bylaws, we may hold three types of shareholders’ meetings: ordinary, extraordinary and special. Ordinary shareholders’ meetings are those called to discuss any issue not reserved for extraordinary shareholders’ meetings. An annual ordinary shareholders’ meeting must be convened and held within the first four months following the end of each fiscal year to discuss, among other things, the report prepared by the Board

149

on our financial statements, the appointment of members of the Board, declaration of dividends and the determination of compensation for members of the Board. Under the Mexican Securities Law, our ordinary shareholders’ meeting, in addition to those matters described above, must approve any transaction representing 20% or more of our consolidated assets, executed in a single or a series of transactions, during any fiscal year.

Extraordinary shareholders’ meetings are those called to consider any of the following matters:

·

extension of a company’s duration or voluntary dissolution;

	·
·	an increase or decrease in a company’s minimum fixed capital;

	·
·	change in corporate purpose or nationality;

	·
·	any transformation, merger or ~~spin-off~~spin‑off involving the company;

	·
·	any stock redemption or issuance of preferred stock or bonds;

	·
·	the cancellation of the listing of our shares with the Mexican National Registry of Securities or on any stock exchange;

	·
·	amendments to a company’s bylaws; and

	·
·	any other matters for which applicable Mexican law or the bylaws specifically require a general extraordinary shareholders’ meeting.

~~175~~

Special shareholders’ meetings are those called and held by shareholders of the same series or class to consider any matter particularly affecting the relevant series or class of shares.

Shareholders’ meetings are required to be held in our corporate domicile, which is Mexico City. Calls for shareholders’ meetings must be made by the Chairman, the Secretary, two members of the Board of Directors, the Audit Committee and the Corporate Practices, Finance, Planning and Sustainability Committee. Any shareholder or group of shareholders representing at least 10% of our capital stock has the right to request that the president of the Board of Directors, the Audit Committee or the Corporate Practices, Finance, Planning and Sustainability Committee calls a shareholders’ meeting to discuss the matters indicated in the relevant request. If the president of the Board of Directors, the Audit Committee or the Corporate Practices, Finance, Planning and Sustainability Committee fails to call a meeting within 15 calendar days following receipt of the request, the shareholder or group of shareholders representing at least 10% of our capital stock may request that the call be made by a competent court.

Calls for shareholders’ meetings must be published in the Federal Official Gazette ~~of the Federation~~ or in one newspaper of general circulation in Mexico City at least 15 calendar days prior to the date of the meeting. Each call must set forth the place, date and time of the meeting and the matters to be addressed. Calls must be signed by whoever makes them, provided that calls made by the Board of Directors, the Audit Committee or the Corporate Practices, Finance, Planning and Sustainability Committee must be signed by the Chairman, the Secretary or a special delegate appointed by the Board of Directors, the Audit Committee or the Corporate Practices, Finance, Planning and Sustainability Committee for that purpose. Shareholders’ meetings will be validly held and convened without the need of a prior call or publication whenever all the shares representing our capital are duly represented.

To be admitted to any shareholders’ meeting, shareholders must: (i) be registered in our share registry; and (ii) at least 24 hours prior to the commencement of the meeting submit (a) an admission ticket issued by us for that purpose and (b) a certificate of deposit of the relevant stock certificates issued by the Secretary or by a securities deposit institution, a Mexican or foreign bank or securities dealer in accordance with the Mexican Securities Law. The share registry will be closed three days prior to the date of the meeting. Shareholders may be represented at any shareholders’ meeting by one or more ~~attorneys-in-fact~~attorneys‑in‑fact who may not be our directors. Representation at shareholders’ meetings may be substantiated pursuant to general or special powers of attorney or by a proxy executed before two witnesses.

150

Ownership of shares may be evidenced by a certificate issued by a securities depositary (or Indeval) coupled with a certificate issued by any institution with an account at Indeval.

At or prior to the time of the publication of any call for a shareholders’ meeting, we will provide copies of the publication to the depositary for distribution to the holders of ADSs. Holders of ADSs are entitled to instruct the depositary as to the exercise of voting rights pertaining to the Series B shares.

Quorum

Ordinary meetings are regarded as legally convened pursuant to a first call when more than 50% of the shares representing our capital are present or duly represented. Resolutions at ordinary meetings of shareholders are valid when approved by a majority of the shares present at the meeting. Any number of shares represented at an ordinary meeting of shareholders convened pursuant to a second or subsequent call constitutes a quorum. Resolutions at ordinary meetings of shareholders convened in this manner are valid when approved by a majority of the shares present at the meeting.

Extraordinary shareholders’ meetings are regarded as legally convened pursuant to a first call when at least 75% of the shares representing our capital are present or duly represented and no minimum number of shares is required for a quorum at a second call for an extraordinary shareholders’ meeting.

~~176~~

Resolutions at extraordinary meetings of shareholders are valid if taken by the favorable vote of shares representing more than 50% of our capital.

Notwithstanding the foregoing, resolutions at extraordinary meetings of shareholders called to discuss any of the items listed below are valid only if approved by a vote of shares representing at least 75% of our capital:

·

any amendment to our bylaws that: (i) changes or deletes the authorities of our committees or (ii) eliminates or modifies any minority rights;

	·
·	any actions resulting in the cancellation of the concessions granted to us or our subsidiaries by the Mexican government or any assignment of rights arising therefrom;

	·
·	termination of the Participation Agreement that was entered into by SETA and the Mexican government in connection with the Mexican government’s sale of the Series BB shares to SETA;

	·
·	a merger with an entity that conducts business that is not related to the business of us or our subsidiaries; and


·		a ~~spin-off,~~spin‑off, dissolution or liquidation.

Our bylaws also establish that a delisting of our shares requires the vote of holders of 95% of our capital stock.

Veto Rights of Holders of Series BB Shares

So long as the Series BB shares represent at least 7.65% of our capital stock, resolutions adopted at shareholders’ meetings with respect to any of the items listed below will only be valid if approved by a vote of at least 95% of our capital stock or a majority of the Series BB shares:

·

approval of our financial statements and those of our subsidiaries;

	·
·	anticipated liquidation or dissolution;

	·
·	capital increases or decreases of us or of our subsidiaries;

	·
·	declaration and payment of dividends;

	·
·	amendment to our bylaws;

151


·		mergers, ~~spin-offs,~~spin‑offs, reclassifications, consolidations or share splits;

	·
·	grant or amendment of special rights of any series of shares of our capital stock;

	·
·	any decision amending or nullifying a resolution validly taken by the Board of Directors with respect to decisions of the Board of Directors that require the affirmative vote of the directors elected by the holders of our Series BB shares; and

	·
·	any shareholder resolution with respect to a matter requiring the affirmative vote of the directors appointed by the holders of our Series BB shares.

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Right of Withdrawal

Any shareholder having voted against a resolution validly adopted at a meeting of our shareholders with respect to (i) a change in our corporate purpose or nationality, (ii) a change of corporate form, (iii) a merger involving us in which we are not the surviving entity or the dilution of its capital stock by more than 10% or (iv) a ~~spin-off,~~spin‑off, may request redemption of its shares, provided that the relevant request is filed with us within 15 days following the holding of the relevant shareholders’ meeting. The redemption of the shareholders’ shares will be effected at the lower of (a) 95% of the average trading price determined based on the average of the prices of our shares on the 30 days on which the shares may have been quoted prior to the date of the meeting or (b) the book value of the shares in accordance with the most recent audited financial statements approved by our shareholders’ meeting.

Dividends and Distributions

At our annual ordinary general shareholders’ meeting, the Board of Directors will submit to the shareholders for their approval our financial statements for the preceding fiscal year as presented by our Chief Executive Officer. Five percent of our net income (after profit sharing and other deductions required by Mexican law) must be allocated to a legal reserve fund until the legal reserve fund reaches an amount equal to at least 20% of our capital stock (without adjustment for inflation). Additional amounts may be allocated to other reserve funds as the shareholders may from time to time determine including a reserve to repurchase shares. The remaining balance, if any, of net earnings may be distributed as dividends on the shares of common stock. A full discussion of our dividend policy may be found in “Item 8. Financial Information—Dividends.”

Registration and Transfer

Our shares are registered with the Mexican National Securities Registry, as required under the Mexican Securities Law and regulations issued by the CNBV. Our shares are evidenced by share certificates in registered form, and registered dividend coupons may be attached thereto. Our shareholders may either hold their shares directly, in the form of physical certificates, or indirectly, in ~~book-entry~~book‑entry form through institutions that have accounts with Indeval. Indeval is the holder of record in respect of all such shares held in ~~book-entry~~book‑entry form. Indeval will issue certificates on behalf of our shareholders upon request. Accounts may be maintained at Indeval by the following participants: brokers, banks, other financial entities or other entities approved by the CNBV. We maintain a stock registry and only those persons listed in such stock registry, and those holding certificates issued by Indeval or any related Indeval participants indicating ownership, will be recognized as our shareholders. The transfer of shares must be registered in our stock registry. In the case of an international offering, the Depositary will appear in such stock registry as the registered holder of the common shares represented by the ADSs.

Series BB shares may only be transferred after conversion into Series B shares and are subject to the following rules:

·SETA was required to retain at least 51% of its Series BB shares until June 14, 2007. Since June 14, 2007, SETA is free to sell in any year up to one eighth of such 51% interest in Series BB shares. To date, SETA has not elected to transfer any such shares.

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·If SETA owns Series BB shares that represent less than 7.65% of our capital stock after June 14, 2015, those remaining Series BB shares will be automatically converted into freely transferable Series B shares.

·~~If SETA owns Series BB shares representing at least 7.65% of our capital stock after June 14, 2015, those Series BB shares may be converted into Series B shares, provided the holders of~~

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~~at least 51% of Series B shares (other than shares held by SETA and any of its “related persons”) approve such conversion.~~

~~For purposes of our bylaws, a “related person” means, with respect to any person:~~

·~~any corporation or person, directly or indirectly, controlling, controlled by or under common control with such person;~~

·~~any corporation or person having the capacity to determine the business guidelines and policies of such person;~~

·~~in the case of an individual, an individual having a blood or civil kinship in a direct line (ascending or descending) within and including the fourth degree with such person;~~

·~~SETA; or~~

·~~with respect to SETA, its shareholders, persons related to it or any party to the operating agreement pursuant to which SETA fulfills its obligations under the Technical Assistance Agreement.~~

·

If SETA owns Series BB shares that represent less than 7.65% of our capital stock after June 14, 2015, those remaining Series BB shares will be automatically converted into freely transferable Series B shares.

·

If SETA owns Series BB shares representing at least 7.65% of our capital stock after June 14, 2015, those Series BB shares may be converted into Series B shares, provided the holders of at least 51% of Series B shares (other than shares held by SETA and any of its “related persons”) approve such conversion. For purposes of our bylaws, a “related person” means, with respect to any person:

·

any corporation or person, directly or indirectly, controlling, controlled by or under common control with such person;

·

any corporation or person having the capacity to determine the business guidelines and policies of such person;

·

in the case of an individual, an individual having a blood or civil kinship in a direct line (ascending or descending) within and including the fourth degree with such person;

·

SETA; or

·

with respect to SETA, its shareholders, persons related to it or any party to the operating agreement pursuant to which SETA fulfills its obligations under the Technical Assistance Agreement.

For purposes of our bylaws, “control” of a person, with respect to any person, is defined as:

·

the ownership, directly or indirectly of 20% or more of the capital stock with voting rights of such person;

·

the contractual right to elect the majority of the members of the Board of Directors of the person;

·

the ability to veto resolutions that could otherwise be adopted by the majority of the person’s shareholders; or

·

existence of commercial relations representing the purchase of more than 15% of the total annual sales of such person.

·~~the ownership, directly or indirectly of 20% or more of the capital stock with voting rights of such person;~~

·~~the contractual right to elect the majority of the members of the Board of Directors of the person;~~

·~~the ability to veto resolutions that could otherwise be adopted by the majority of the person’s shareholders; or~~

·~~existence of commercial relations representing the purchase of more than 15% of the total annual sales of such person.~~

Shareholder Ownership Restrictions and Anti-Takeover Protection

Under the Mexican Airport Law:

·

no more than 5% of our outstanding capital stock may be owned by air carriers; and

·

foreign governments acting in a sovereign capacity may not directly or indirectly own any portion of our capital stock. The foregoing ownership restrictions do not apply to:

·

the Mexican government;

·

NAFIN, in its capacity as trustee of the Ministry of Communications and Transportation;

·

institutions that act as depositaries for securities; and

·

financial and other authorized institutions that hold securities for the account of beneficial owners (including the depositary), provided that such beneficial owners are not exempt from the ownership restrictions.

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·~~no more than 5% of our outstanding capital stock may be owned by air carriers; and~~

·~~foreign governments acting in a sovereign capacity may not directly or indirectly own any portion of our capital stock.~~

~~The foregoing ownership restrictions do not apply to:~~

·~~the Mexican government;~~

·~~NAFIN, in its capacity as trustee of the Ministry of Communications and Transportation;~~

·~~institutions that act as depositaries for securities; and~~

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·financial and other authorized institutions that hold securities for the account of beneficial owners (including the depositary), provided that such beneficial owners are not exempt from the ownership restrictions.

Air carriers and their subsidiaries and affiliates are not permitted, directly or indirectly, to “control” us or any of our subsidiary concession holders.

Under the Mexican Airport Law, any acquisition of control requires the prior consent of the Ministry of Communications and Transportation.

For purposes of these provisions, “related person” and “control” are defined above under “Registration and Transfer.”

The Mexican Securities Law contains provisions relating to public tender offers and certain other share acquisitions. Any intended acquisition of our shares that results in the acquirer obtaining control of our voting shares (our Series B shares and Series BB shares considered together) requires the acquirer, with the prior approval of the CNBV, to make a mandatory public tender offer for the greater of (i) the percentage of the capital stock intended to be acquired or (ii) 10% of our capital stock. Any intended acquisition of our shares that is aimed at obtaining control requires the potential acquirer to make a mandatory tender offer for 100% of our outstanding capital stock (in addition to the approval of the Ministry of Communications and Transportation). The tender offer must be made at the same price to all shareholders and classes of shares. Our Board of Directors must issue its opinion of any tender offer resulting in a change of control, which opinion must take into account minority shareholder rights and which may be accompanied by an independent fairness opinion. Directors and principal officers are required to disclose whether they will participate in the tender.

Under the Mexican Securities Law, all tender offers must be open for at least 20 business days, and purchases thereunder are required to be made pro rata to all tendering shareholders. The Mexican Securities Law only permits the payment of certain amounts to controlling shareholders over and above the offering price if these amounts are fully disclosed, approved by the Board of Directors and paid solely in connection with ~~non-~~ non‑compete or similar obligations.

Certain Minority Protections

Pursuant to the Mexican Securities Law and the Mexican General Law of Business Corporations, there are several protections afforded to minority shareholders. These protections include provisions that permit:

·

holders of at least 10% of our outstanding capital stock:

-

to vote (including in a limited or restricted manner) to request a call for a shareholders’ meeting;

-

to request that resolutions with respect to any matter on which they were not sufficiently informed be postponed; and

-

to appoint one member of our Board of Directors and one alternate member of our Board of Directors.

·

holders of 20% of our outstanding capital stock to oppose any resolution adopted at a shareholders’ meeting and file a petition for a court order to suspend the resolution temporarily, within 15 days following the adjournment of the meeting at which the action was taken, provided that (i) the challenged resolution violates Mexican law or our bylaws, (ii) the opposing shareholders neither attended the meeting nor voted in favor of the challenged resolution and (iii) the opposing shareholders deliver a bond to the court to secure payment of any damages that we may suffer as a result of suspending the resolution, in the event that the court ultimately rules against the opposing shareholders; and

·

holders of 5% of our outstanding capital stock may initiate a shareholder derivative suit against some or all of our directors, for our benefit, for violations of their duty of care or duty of loyalty, in an amount equal to the damages or losses caused to us. Actions initiated on these grounds have a five year statute of limitations.

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·~~holders of at least 10% of our outstanding capital stock:~~

–~~to vote (including in a limited or restricted manner) to request a call for a shareholders’ meeting;~~

–~~to request that resolutions with respect to any matter on which they were not sufficiently informed be postponed; and~~

–~~to appoint one member of our Board of Directors and one alternate member of our Board of Directors.~~

·holders of 20% of our outstanding capital stock to oppose any resolution adopted at a shareholders’ meeting and file a petition for a court order to suspend the resolution temporarily, within 15 days following the adjournment of the meeting at which the action was

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taken, provided that (i) the challenged resolution violates Mexican law or our bylaws, (ii) the opposing shareholders neither attended the meeting nor voted in favor of the challenged resolution and (iii) the opposing shareholders deliver a bond to the court to secure payment of any damages that we may suffer as a result of suspending the resolution, in the event that the court ultimately rules against the opposing shareholders; and

·holders of 5% of our outstanding capital stock may initiate a shareholder derivative suit against some or all of our directors, for our benefit, for violations of their duty of care or duty of loyalty, in an amount equal to the damages or losses caused to us. Actions initiated on these grounds have a five year statute of limitations.

Changes in Capital Stock

Increases and reductions of our capital must be approved at an extraordinary shareholders’ meeting, subject to the provisions of our bylaws and the Mexican General Law of Business Corporations.

Subject to the individual ownership limitations set forth in our bylaws, in the event of an increase of our capital stock, other than (i) for purposes of conducting a public offering of the shares issued as a result of such increase, (ii) in connection with mergers, (iii) with respect to the resale of repurchased shares or (iv) in connection with the conversion of convertible securities, our shareholders will have a preemptive right to subscribe and pay for new stock issued as a result of such increase in proportion to their shareholder interest at that time. Such preemptive right shall be exercised by any method provided in Section 132 of the Mexican General Law of Business Corporations, by subscription and payment of the relevant stock within 15 business days after the date of publication of the corresponding notice to our shareholders inthrough the ~~Official Gazette~~electronic system established by the Mexican Ministry of ~~the Federation and in one of the newspapers of greater circulation in Mexico,~~Economy (Secretaría de Economía), provided that if at the corresponding meeting all of our shares are duly represented, the ~~15-business~~15‑calendar day period shall commence on the date of the meeting.

Our capital stock may be reduced by resolution of a shareholders’ meeting taken pursuant to the rules applicable to capital increases. Our capital stock may also be reduced upon withdrawal of a shareholder as provided in Section 206 of the Mexican General Law of Business Corporations (see “—Voting Rights and Shareholders’ Meetings—Right of Withdrawal”) or by repurchase of our own stock in accordance with the Mexican Securities Law (see “—Share Repurchases”).

Share Repurchases

We may choose to acquire our own shares through the Mexican Stock Exchange and NASDAQ on the following terms and conditions:

·

the acquisition must be carried out through the Mexican Stock Exchange;

·

the acquisition must be carried out at market price, unless a public offer or auction has been authorized by the CNBV;

·

the acquisition must be carried out against our paid in capital, and shares acquired will be held as treasury stock without any requirement to adopt a reduction in capital stock or reduce our capital stock, in which case, such shares will be cancelled;

·

the annual ordinary shareholders meeting shall determine the maximum amount of funds to be used in the fiscal year for the repurchase of shares;

·

we may not be delinquent on payments due on any outstanding debt issued by us that is registered with the Mexican National Securities Registry; and

·

any acquisition of shares must be in conformity with the requirements of Article 54 of the Mexican Securities Law, and we must maintain a sufficient number of outstanding shares to meet the minimum trading volumes required by the stock markets on which our shares are listed.

·~~the acquisition must be carried out through the Mexican Stock Exchange;~~

·~~the acquisition must be carried out at market price, unless a public offer or auction has been authorized by the CNBV;~~

·the acquisition must be carried out against our paid in capital, and shares acquired will be held as treasury stock without any requirement to adopt a reduction in capital stock or reduce our capital stock, in which case, such shares will be cancelled;

·~~the annual ordinary shareholders meeting shall determine the maximum amount of funds to be used in the fiscal year for the repurchase of shares;~~

·~~we may not be delinquent on payments due on any outstanding debt issued by us that is registered with the Mexican National Securities Registry; and~~

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orders such cancellation, we will be required to conduct a tender offer for the purchase of stock held by minority shareholders and to create a trust for a period of six months, with amounts sufficient to purchase all shares not participating in the tender offer. Under the law, our controlling shareholders will be secondarily liable for these obligations. The price at which the stock must be purchased shall be the higher of (i) the average of the trading price on the Mexican Stock Exchange during the last 30 days on which the shares were quoted prior to the date on which the tender offer is made or (ii) the book value of such shares as determined pursuant to our latest quarterly financial information filed with the CNBV and the Mexican Stock Exchange. If the tender for cancellation is requested by the CNBV, it must be initiated within 180 days from the date of the request. If requested by us, under the new Mexican Securities Law, the cancellation must be approved by 95% of our shareholders.

Liquidation

Upon our dissolution, one or more liquidators must be appointed at an extraordinary shareholders’ meeting to wind up our affairs. All fully paid and outstanding shares will be entitled to participate equally in any distribution upon liquidation. Partially paid shares participate in any distribution in the same proportion that such shares have been paid at the time of the distribution.

Other Provisions

Liabilities of the Members of the Board of Directors

The Mexican Securities Law imposes a duty of care and a duty of loyalty on directors. The duty of care requires our directors to act in good faith and in the best interests of the Company. For such purpose, our directors are required to obtain the necessary information from the chief executive officer, the executive officers, the external auditors or any other person in order to act in our best interests. Our directors are liable for damages and losses caused to us and our subsidiaries as a result of violations of this duty of care.

The duty of loyalty requires our directors to preserve confidential information received in connection with the performance of their duties and to abstain from discussing or voting on matters in which they have a conflict of interest. In addition, the duty of loyalty is violated if a shareholder or group of shareholders is knowingly favored or if, without the express approval of the Board of Directors, a director takes advantage of a corporate opportunity. The duty of loyalty is also violated by (i) failing to disclose to the Audit Committee or the external auditors any irregularities that the director encounters in the performance of his or her duties or (ii) disclosing information that is false or misleading or omitting to record any transaction in our records that could affect our financial statements. Directors are liable for

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In addition to the duty of care and duty of loyalty required by the Mexican Securities Law, our bylaws provide that, from the date on which at least 51% of our capital stock is listed on a stock exchange, a member of the Board of Directors will be liable to us and our shareholders in the following circumstances:

·~~negligence resulting in the loss of more than two-thirds of our capital stock and that results in our dissolution;~~

·~~bankruptcy, subject to certain conditions, when the actions taken by the Board of Directors results in a declaration of insolvency (~~~~concurso mercantil~~);

·~~breaching any of the duties set forth under our bylaws; and~~

·~~failure to report irregularities in the actions of former members of the Board of Directors.~~

·

negligence resulting in the loss of more than two‑thirds of our capital stock and that results in our dissolution;

·

bankruptcy, subject to certain conditions, when the actions taken by the Board of Directors results in a declaration of insolvency (concurso mercantil);

·

breaching any of the duties set forth under our bylaws; and

·

failure to report irregularities in the actions of former members of the Board of Directors.

The members of the Board of Directors are liable to our shareholders only for the loss of net worth suffered as a consequence of disloyal acts carried out in excess of their authority or in violation of our bylaws.

Information to Shareholders

The Mexican General Law on Business Corporations establishes that companies, acting through their boards of directors, must annually present a report at a shareholders’ meeting that includes the following:

·~~a report of the directors on the operations of the company during the preceding year, as well as on the policies followed by the directors and on the principal existing projects;~~

·~~a report explaining the principal accounting and information policies and criteria followed in the preparation of the financial information;~~

·~~a statement of the financial condition of the company at the end of the fiscal year;~~

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·

a report of the directors on the operations of the company during the preceding year, as well as on the policies followed by the directors and on the principal existing projects;

·

a report explaining the principal accounting and information policies and criteria followed in the preparation of the financial information;

·~~a statement showing the results of operations of the company during the preceding year, as well as changes in the company’s financial condition and capital stock during the preceding year;~~

·~~the notes that are required to complete or clarify the above mentioned information; and~~

·~~the report prepared by the Audit Committee with respect to the accuracy and reasonability of the above mentioned information presented by the Board of Directors.~~

·

a statement of the financial condition of the company at the end of the fiscal year;

·

a statement showing the results of operations of the company during the preceding year, as well as changes in the company’s financial condition and capital stock during the preceding year;

·

the notes that are required to complete or clarify the above mentioned information; and

·

the report prepared by the Audit Committee with respect to the accuracy and reasonability of the above mentioned information presented by the Board of Directors.

In addition to the foregoing, our bylaws provide that the Board of Directors should also prepare the information referred to above with respect to any subsidiary that represents at least 20% of our net worth (based on the financial statements most recently available).

Duration

The duration of our corporate existence is indefinite.

Shareholders’ Conflict of Interest

Under Mexican law, any shareholder that has a conflict of interest with respect to any transaction must abstain from voting and from being present and participating in discussions thereon at the relevant shareholders’ meeting. A shareholder that votes on a transaction in which its interest conflicts with ours may be liable for damages in the event the relevant transaction would not have been approved without such shareholder’s vote.

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Table of the transaction that resulted in the shareholder becoming an interested shareholder, the interested shareholder owns at least 85% of the voting stock of the corporation, excluding shares held by directors, officers and employee stock plans; orContents

Directors’ Conflict of Interest

Under Mexican law, any director who has a conflict of interest in any transaction must disclose such fact to the other directors and abstain from voting on such transaction. Any director who violates such provision will be liable to us for any resulting damages or losses.

Certain Differences between Mexican and U.S. Corporate Law

The Mexican General Law of Business Corporations and the Mexican Securities Law, which apply to us, differ in certain material respects from laws generally applicable to U.S. corporations and their shareholders.

Independent Directors

The Mexican Securities Law requires that 25% of the directors of Mexican public companies be independent. Pursuant to the rules and regulations of the NASDAQ National Market, foreign companies subject to reporting requirements under the U.S. federal securities laws and listed on the NASDAQ National Market must maintain a committee responsible for Audit Functions comprised entirely of independent directors as defined in the U.S. federal securities laws.

Mergers, Consolidations and Similar Arrangements

A Mexican company may merge with another company only if a majority of the shares representing its outstanding capital stock approves the merger at a duly convened general extraordinary shareholders’ meeting, unless the company’s bylaws impose a higher threshold. Dissenting shareholders are not entitled to appraisal rights. Creditors have 90 days to oppose a merger judicially, provided they have a legal interest to oppose the merger.

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·

upon consummation of the transaction that resulted in the shareholder becoming an interested shareholder, the interested shareholder owns at least 85% of the voting stock of the corporation, excluding shares held by directors, officers and employee stock plans; or

·

at or after the date of the transaction in which the shareholder became an interested shareholder, the business combination is approved by the board of directors and authorized at a shareholders’ meeting by at least 66 2/3% of the voting stock, which is not owned by the interested shareholder.

·at or after the date of the transaction in which the shareholder became an interested shareholder, the business combination is approved by the board of directors and authorized at a shareholders’ meeting by at least 66 2/3% of the voting stock, which is not owned by the interested shareholder.

Shareholders’ Suits

As mentioned above, holders of 5% of our outstanding shares may initiate action against some or all of our directors for violations of their duty of care or duty of loyalty, for our benefit, in an amount equal to the damages or losses caused to us. Actions initiated on these grounds have a ~~five-year~~five‑year statute of limitations and will not be applicable if the relevant directors acted under any of the exclusions set forth under the new Mexican Securities Law. Procedures for ~~class-action~~class‑action lawsuits were incorporated into Mexican law and became effective in March 2012. However, these rules and procedures are different and more limited than those in place in the United States.

Class actions and derivative actions are generally available to shareholders under Delaware law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law. In these kinds of actions, the court generally has discretion to permit the winning party to recover attorneys’ fees incurred in connection with the action.

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Approval of Corporate Matters by Written Consent

Mexican law permits shareholders to take action by unanimous written consent of the holders of all shares entitled to vote. These resolutions have the same legal effect as those adopted in a general or special shareholders’ meeting. The board of directors may also approve matters by unanimous written consent.

Delaware law permits shareholders to take action by written consent of holders of outstanding shares having more than the minimum number of votes necessary to take the action at a shareholders’ meeting at which all voting shares were present and voted.

Amendment of Certificate of Incorporation

Under Mexican law, it is not possible to amend a company’s certificate of incorporation (acta constitutiva). However, the provisions that govern a Mexican company are contained in its bylaws, which may be amended as described below. Under Delaware law, a company’s certificate of incorporation generally may be amended by a vote of the majority of shareholders entitled to vote thereon (unless otherwise provided in the Certificate of Incorporation), subsequent to a resolution of the board of directors proposing such amendment.

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~~Aeroinvest and SETA have entered into a voting rights agreement providing for bloc voting with respect to their shares~~Table of ~~our capital stock. See “Item 7. Major Shareholders and Related-Party Transactions—Major Shareholders—Arrangements Relating to Aeroinvest.”~~Contents

EXCHANGE CONTROLS

Mexico has had free market for foreign exchange since 1991, and the government has allowed the peso to float freely against the U.S. dollar since December 1994. The government may not maintain its current foreign exchange policies. See “Item 3. Key Information—Exchange Rates.”

TAXATION

The following summary contains a description of the material anticipated U.S. and Mexican federal income tax consequences of the purchase, ownership and disposition of our Series B shares or ADSs by a beneficial holder that is a citizen or resident of the United States or a U.S. domestic corporation or that otherwise will be subject to U.S. federal income tax on a net income basis in respect of our Series B shares or ADSs and that is a ~~“non-Mexican~~“non‑Mexican holder” (as defined below) (a “U.S. holder”), but

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Dividends paid to ~~non-Mexican~~non‑Mexican holders with respect to our Series B shares and, as a consequence, with respect to ADSs, are subject to Mexican withholding tax at the rate of 10% on the gross amount of the dividend distributed. This withholding tax may not apply to dividend distributions related to certain retained earnings for years prior to 2013. Such 10% withholding tax will be remitted to the Mexican tax authorities as a definitive payment on behalf of the ~~non-Mexican~~non‑Mexican holders.

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Taxation of Dispositions of Shares or ADSs

~~Mexican~~ADSs-Mexican Tax Considerations

~~Non-Mexican~~Non‑Mexican holders are liable for income tax in Mexico with respect to income derived from sources of wealth located within the national territory. The Mexican Income Tax Law locates the source

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U.S. Federal Income Tax Considerations

~~Upon~~Assuming we are not treated as a PFIC (as discussed above under Taxation of Dividends—U.S. Federal Income Tax Considerations), upon the sale or other disposition of the Series B shares or ADSs, a U.S. holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized on the sale or other disposition and such U.S. holder’s tax basis in the Series B shares or ADSs. Gain or loss recognized by a U.S. holder on such sale or other disposition generally will be long-term capital gain or loss if, at the time of the sale or other disposition, the Series B shares or ADSs have been held for more than one year. Long-term capital gain recognized by a U.S. holder that is an individual is subject to lower rates of federal income taxation than ordinary income or short-term capital gain. The deduction of a capital loss is subject to limitations for U.S. federal income tax purposes. Deposits and withdrawals of Series B shares by U.S. holders in exchange for ADSs will not result in the realization of gain or loss for U.S. federal income tax purposes.

Gain, if any, realized by a U.S. holder on the sale or other disposition of the Series B shares or ADSs generally will be treated as U.S. source income for U.S. foreign tax credit purposes. Consequently, if a Mexican withholding tax is imposed on the sale or disposition of the Series B shares, a U.S. holder that does not receive significant foreign source income from other sources may not be able to derive effective U.S. foreign tax credit benefits in respect of these Mexican taxes. U.S. holders should consult their own tax advisors regarding the application of the foreign tax credit rules to their investment in, and disposition of, Series B shares.

Other Mexican Taxes

There are no Mexican inheritance, gift, succession or value added taxes applicable to the ownership, transfer or disposition of the Series B shares or ADSs by non-Mexican holders; provided, however, that gratuitous transfers of the Series B shares or ADSs may in certain circumstances cause a Mexican federal tax to be imposed upon the recipient. There are no Mexican stamp, issue, registration or similar taxes or duties payable by non-Mexican holders of the Series B shares or ADSs.

Specified Foreign Financial Assets

Certain U.S. Holders that own “specified foreign financial assets” with an aggregate value in excess of USD 50,000 are generally required to file an information statement along with their tax returns, currently on Form 8938, with respect to such assets. “Specified foreign financial assets” include any financial accounts held at a non-U.S. financial institution, as well as securities issued by a non-U.S. issuer (which would include the Series B shares or ADSs) that are not held in accounts maintained by financial institutions. Higher reporting thresholds apply to certain individuals living abroad and to certain married individuals. Regulations extend this reporting requirement to certain entities that are treated as formed or availed of to hold direct or indirect interests in specified foreign financial assets based on certain objective criteria. U.S. holders that fail to report the required information could be subject to substantial penalties. Prospective investors should consult their own tax advisors concerning the application of these rules to their investment in the Class B shares or ADSs, including the application of the rules to their particular circumstances.

U.S. Backup Withholding Tax and Information Reporting Requirements

In general, information reporting requirements will apply to payments by a paying agent within the United States to a ~~non-corporate (or other non-exempt)~~non-exempt U.S. holder of dividends in respect of the Series B shares or ADSs or the proceeds received on the sale or other disposition of the Series B shares or ADSs, and a backup withholding tax may apply to such amounts if the U.S. holder fails to provide an accurate taxpayer identification number to the paying agent. Backup withholding is not an additional tax. Amounts withheld as backup withholding tax will be ~~creditable~~allowed as a refund or credit against the U.S. holder’s U.S. federal income tax liability, provided that the required information is timely furnished to the U.S. Internal Revenue Service.

A holder that is a foreign corporation or a non-resident alien individual may be required to comply with certification and identification procedures in order to establish its exemption from information reporting and backup withholding.

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DOCUMENTS ON DISPLAY

The materials included in this annual report on Form ~~20-F,~~20‑F, and exhibits hereto, may be viewed at the SEC’s public reference room in Washington, D.C. Please call the Commission at ~~1-800-SEC-0330~~1‑800‑SEC‑0330 for further information on the public reference rooms. The SEC maintains a World Wide Web site on the Internet at http://www.sec.gov that contains reports and information statements and other information regarding us. The reports and information statements and other information about us can also be downloaded from the SEC’s website.

A translation of this annual report on Form ~~20-F~~20‑F will be filed with the Mexican Stock Exchange and will be available for consultation through the Mexican Stock Exchange.

The person responsible of handling requests from investors and analysts on our behalf is our Chief Financial Officer, ~~José Luis Guerrero Cortés,~~Ruffo Pérez Pliego del Castillo, who can be reached at Torre Latitud, L501, Piso 5,

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~~Service~~
Service	Fee or Charge Amount	Payee

Issuance and delivery of ADRs against deposits of shares, including deposits in respect of share distributions, rights and other distributions	U.S.$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)	JPMorgan Chase Bank, N.A.

Cancellation of ADSs for the purpose of withdrawal, including if the deposit agreement terminates	U.S.$5.00 (or less) per 100 ADSs (or portion of 100 ADSs)	JPMorgan Chase Bank, N.A.

Any cash distribution to ADS registered holders	U.S.$0.05 (or less) per ADS	JPMorgan Chase Bank, N.A.

Distribution of securities distributed to holders of deposited securities which are distributed by the depositary to ADS registered holders	A fee equivalent to the fee that would be payable if securities distributed to you had been shares and the shares had been deposited for issuance of ADSs	JPMorgan Chase Bank, N.A.

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~~Service~~	~~Fee or Charge Amount~~	~~Payee~~

Depositary services	U.S.$0.05 (or less) per ADS per calendar year	JPMorgan Chase Bank, N.A.

Transfer and registration of shares on our share register to or from the name of the depositary or its agent when you deposit or withdraw shares	U.S.$1.50 per ADR plus applicable registration or transfer fees	JPMorgan Chase Bank, N.A.

Cable, telex and facsimile transmissions (when expressly provided in the deposit agreement)	Expenses of the depositary	JPMorgan Chase Bank, N.A.

Converting foreign currency to U.S. dollars	Expenses of the depositary	JPMorgan Chase Bank, N.A.

Other fees, as necessary	Taxes and other governmental charges JPMorgan Chase Bank, N.A., or the custodian has to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes	JPMorgan Chase Bank, N.A.

Other fees, as necessary	Any charges incurred by JPMorgan Chase Bank, N.A., or its agents for servicing the deposited securities	JPMorgan Chase Bank, N.A.

The depositary of our ADSs, JPMorgan Chase Bank, N.A., collects its fees directly from investors depositing shares or surrendering ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects these fees by deducting them from the amounts distributed or by selling a portion of distributable property to pay the fees. For example, the depositary may deduct from cash distributions, directly bill investors or charge the book-entry system accounts of participants acting for them. The depositary may generally refuse to provide fee-attracting services until its fees for these services are paid.

~~193~~

166

The following table sets forth the amounts that we received in ~~2014,~~2017, directly or indirectly, from JPMorgan Chase Bank N.A., as depositary of our ADSs:

~~Description~~	~~Amount~~
Description	Amount

For expenses related to the establishment of the facility including, but not limited to, investor relations expenses, the initial NASDAQ application and listing fees or any other program-related expenses.	U.S.$ 0	—

For expenses related to the administration and maintenance of the facility including, but not limited to, investor relations expenses, the annual NASDAQ listing fees or any other program-related expenses.	U.S.$ ~~620,600.83~~	3,048

JPMorgan Chase Bank, N.A., as depositary of our ADSs, has agreed to reimburse us for expenses it incurs that are related to establishment and maintenance expenses of the ADS program. The depositary has agreed to reimburse us for its continuing annual stock exchange listing fees. It has also agreed to reimburse us annually for certain investor relationship programs. There are limits on the amount of expenses for which the depositary will reimburse us, but the amount of reimbursement available to us is not necessarily tied to the amount of fees the depositary collects from investors.

~~194~~

167

(b) Management’s Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities and Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Our internal control over financial reporting includes those policies and procedures that:

1.~~pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;~~

1.

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

2.provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

2.

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and

3.~~provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.~~

3.

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and procedures may deteriorate. Under the supervision of our chief executive

~~195~~

168

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control ~~Over~~over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the ~~Public Company Accounting Oversight Board (United States).~~PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A ~~company’s~~company's internal control over financial reporting is a process designed by, or under the supervision of, the company’s principal executive and principal financial officers, or persons performing similar functions, and effected by the company’s board of directors, management, and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A ~~company’s~~company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the ~~company’s~~company's assets that could have a material effect on the financial statements.

Because of ~~the~~its inherent limitations, of internal control over financial reporting ~~including the possibility of collusion or improper management override of controls, material misstatements due to error~~

~~196~~

169

shareholders’ meeting of April ~~10, 2014, ratified Ms. Elsa Beatriz García Bojorges~~23, 2018, appointed Mr. Martin Werner Wainfeld as the independent director required by the Mexican Securities Law and applicable NASDAQ listing standards and as an “audit committee financial expert” within the meaning of this Item 16A. See “Item 6. Directors, Senior Management and Employees—Directors.”

Item 16B.Code of Ethics

We have adopted a code of ethics, as defined in Item 16B of Form 20-F under the Securities Exchange Act of 1934, as amended. Our code of ethics applies to our Board of Directors, chief executive officer, chief financial officer, chief accounting officer and persons performing similar functions as well as to our other officers and employees. Our code of ethics is filed as an exhibit to this Form 20-F and is available on our website at www.oma.aero. If we amend the provisions of our code of ethics that apply to our chief executive officer, chief financial officer, chief accounting officer and persons performing similar functions, or if we grant any waiver of such provisions, we will disclose such amendment or waiver on our website at the same address.

~~197~~

170

SHARES REPURCHASED BY US PURSUANT TO THE SHARE REPURCHASE PROGRAM


			(c) Total number of	(d) Maximum
			shares purchased as	number of shares
		(b) Average price	part of publicly	that may yet be
	(a) Number of shares	paid or received per	announced plans or	purchased under the
2017	purchased (issued)	share in pesos	programs (issued)	plans or programs
January 1–31	—	—	—	N/A
February 1–28	—	—	—	N/A
March 1–31	—	—	—	N/A
April 1–30	—	—	—	N/A
May 1–31	—	—	—	N/A
June 1–30	—	—	—	N/A
July 1–31	—	—	—	N/A
August 1–31	107,892	107	—	N/A
September 1–30	216,615	105	—	N/A
October 1–31	—	—	—	N/A
November 1–30	—	—	—	N/A
December 1–31	—	—	—	N/A
Total	324,507	N/A	—	N/A

SHARES PURCHASED BY CONOISA


			(c) Total number of	(d) Maximum
			shares purchased as	number of shares
		(b) Average price paid	part of publicly	that may yet be
	(a) Number of shares	or received per share	announced plans or	purchased under the
2017	purchased	in pesos	programs	plans or programs
January 1–31	—	—	—	N/A
February 1–28	—	—	—	N/A
March 1–31	—	—	—	N/A
April 1–30	—	—	—	N/A
May 1–31	—	—	—	N/A
June 1–30	—	—	—	N/A
July 1–31	—	—	—	N/A
August 1–31	—	—	—	N/A
September 1–30	—	—	—	N/A
October 1–31	—	—	—	N/A
November 1–30	—	—	—	N/A
December 1–31	—	—	—	N/A
Total	—	—	—	N/A

~~Shares Repurchased by Us Pursuant to the Share Repurchase Program~~

2014

(a)  Number of
shares purchased
(issued)

(b)  Average price
paid or received per
share in pesos

(c)  Total number of
shares purchased as
part of publicly
announced plans or
programs (issued)

(d)  Maximum
number of shares
that may yet be
purchased under the
plans or programs

January 1–31

48,000

42.08

48,000

N/A

February 1–28

299,011

42.05

299,011

N/A

March 1–31

1,094,183

43.53

1,094,183

N/A

April 1–30

0

0

0

N/A

May 1–31

930,877

50.60

930,877

N/A

June 1–30

18,600

51.52

18,600

N/A

July 1–31

135,411

52.42

135,411

N/A

August 1–31

399,039

56.81

399,039

N/A

September 1–30

254,246

56.37

254,246

N/A

October 1–31

0

0

0

N/A

November 1–30

0

0

0

N/A

December 1–31

0

0

0

N/A

Total

3,179,367

N/A

3,179,367

N/A

~~Shares P~~~~urchased~~ ~~by Aeroinvest~~

2014

(a) Number of
shares purchased

(b)  Average price
paid or received per
share in pesos

(c)  Total number of
shares purchased as
part of publicly
announced plans or
programs

(d)  Maximum
number of shares
that may yet be
purchased under the
plans or programs

January 1–31

0

N/A

0

N/A

February 1–28

0

N/A

0

N/A

March 1–31

0

N/A

0

N/A

April 1–30

0

N/A

0

N/A

May 1–31

0

N/A

0

N/A

June 1–30

0

N/A

0

N/A

July 1–31

0

N/A

0

N/A

August 1–31

0

N/A

0

N/A

September 1–30

0

N/A

0

N/A

October 1–31

0

N/A

0

N/A

November 1–30

0

N/A

0

N/A

December 1–31

(3,500,000)

61.50

0

N/A

Total

(3,500,000)

N/A

0

N/A

Item 16F.Change in Registrant’s Certifying Accountant

Not ~~applicable~~applicable.

~~199~~Item 16G. Corporate Governance

171

The table below discloses the significant differences between our corporate governance practices and the NASDAQ standards.

~~NASDAQ Standards~~
NASDAQ Standards		Our Corporate Governance Practice

*Director Independence*. Majority of board of directors must be independent and directors deemed independent must be identified in a listed company’s proxy statement (or annual report on Form 10-K or 20-F if the issuer does not file a proxy statement). “Controlled companies,” which would include us if we were a U.S. issuer, are exempt from this requirement. A controlled company is one in which more than 50% of the voting power is held by an individual, group or another company, rather than the public. Rules 5605(b)(1), 5615(c)(1) & (c)(2).		*Director Independence. Pursuant to the Mexican Securities Law, we are required to have a board of directors composed of a maximum of 21 members, 25% of whom must be independent. One alternate director may be appointed for each principal director; provided that the alternates for the independent director must also be independent. Certain persons are per se* non-independent, including insiders, control persons, major suppliers, and any relatives of such persons. In accordance with the Mexican Securities Law, our shareholders’ meeting is required to make a determination as to the independence of our directors, though such determination may be challenged by the CNBV. There is no exemption from the independence requirement for controlled companies.

		Our bylaws provide that our Board of Directors shall be composed of at least 11 members. Currently, our board has 11 members, of which five are independent under the Mexican Securities Law and the Sarbanes-Oxley Act of 2002.

*Executive Sessions*. Independent directors must meet regularly in executive sessions at which only independent directors are present. Rule 5605(b)(2).		*Executive Sessions*. Our non-management and independent directors are not required to meet in executive sessions and generally do not do so. Under our bylaws and applicable Mexican law, executive sessions are not required.

172

NASDAQ Standards

Our Corporate Governance Practice

Audit Committee. Audit committee satisfying the independence and other requirements of Rule 10A-3 under the Exchange Act and the more stringent requirements under the NASDAQ standards is required. Rule 5605(c)(1).

Audit Committee. We are in compliance with the independence requirements of Rule 10A-3. Marketplace Rule 4350(a)(1) permits us to follow our home country governance practices in lieu of certain NASDAQ requirements, and as such the members of our Audit Committee are not required to satisfy the NASDAQ independence and other

~~200~~

173


NASDAQ Standards		Our Corporate Governance Practice

		·informing the board of any irregularities that it may encounter; ·receiving and analyzing recommendations and observations made by the shareholders, members of the Board, executive officers, our external auditors or any third party and taking the necessary actions; ·calling shareholders’ meetings; ·overseeing the execution of the shareholders’ and directors’ resolutions by the chief executive officer in accordance with the instructions provided thereto by the shareholders or the directors; and ·providing an annual report to the Board.

174

NASDAQ Standards

Our Corporate Governance Practice

Compensation Committee. CEO compensation must be determined, or recommended to the board for determination, either by compensation committee comprised solely of independent directors or a majority of the independent directors and the CEO may not be present during voting or deliberations. Compensation of all other executive officers must be determined in the same manner, except that the CEO, and any other executive officers, may be present. “Controlled companies” are exempt from this requirement. Rules 5605(e)(1)(B) & 5615(c)(2).

Corporate Practices, Finance, Planning and Sustainability Committee. Pursuant to the Mexican Securities Law, we are required to have a committee responsible for Corporate Practices Functions, although we are not required to have a separate compensation committee. The Mexican Securities Law requires that committees consist of at least three independent directors appointed by the board of directors. All committee members must be independent (except to the extent a controlling shareholder or shareholders own 50% or more of our outstanding capital stock, in which case the majority must be independent).

Pursuant to our bylaws and the Mexican Securities Law, the duties of our Corporate Practices, Finance, Planning and Sustainability Committee include, among others, the following:

(i)providing opinions to our Board of Directors;

(ii)requesting and obtaining opinions from independent experts;

~~202~~

175


NASDAQ Standards		Our Corporate Governance Practice
Code of Business Conduct and Ethics. Corporate governance guidelines and a code of business conduct and ethics is required, with disclosure of any waiver and the reasons for such waiver for directors or executive officers. The code must include an enforcement mechanism. Rule 5610.		*Code of Business Conduct and Ethics*. We have adopted a code of ethics applicable to all of our directors and executive officers, which is available to you free of charge upon request and at ~~www.oma.aero~~.www.oma.aero. We are required by Item 16B of Form 20-F to disclose any waivers granted to our chief executive officer, chief financial officer and persons performing similar functions, as well as to our other officers/employees.

*Conflicts of Interest*. Appropriate review of all related-party transactions for potential conflict of interest situations and approval by an Audit Committee or another independent body of the board of directors of such transactions is required. Rule 5630(a-b).		*Conflicts of Interest*. In accordance with Mexican law and our bylaws, the Audit Committee must provide an opinion regarding any transaction with a related party that is outside of the ordinary course of business, and such transactions must be approved by the Board of Directors. Pursuant to

~~203~~

~~NASDAQ Standards~~		~~Our Corporate Governance Practice~~
		the Mexican Securities Law, our Board of Directors and our Audit Committee are required to establish certain guidelines regarding related-party transactions that do not require board approval.

*Solicitation of Proxies. Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NASDAQ. Rule 5620(b).*		*Solicitation of Proxies*. Under the Mexican Securities Law, we are obligated to make available proxy materials for meetings of shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting and provides a mechanism by which shareholders can vote by proxy. Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders’ meetings and, where applicable, requests for instructions to the ADS depositary for the voting of shares represented by ADSs.

*Peer Review. A listed company must be audited by an independent public accounting firm that is registered as a public accounting firm with the Public Company Accounting Oversight Board. Rule 5250(c)(3).*		*Peer Review*. Under Mexican law, we must be audited by an independent public accountant that has received a “quality control review” as defined by the CNBV. Galaz, Yamazaki, Ruiz Urquiza, S.C., ~~a member~~Member of Deloitte & Touche ~~Tohmatsu,~~Thomatsu Limited, our independent auditor, is not subject to “peer review” as such term is defined in Marketplace Rule 4350(k).

Item 16H.Mine Safety Disclosures

Not applicable.

176

PART III

Item 17. Financial Statements

Not applicable.

~~204~~Item 18. Financial Statements

~~Exhibit No.~~		~~Description~~

~~1.1~~
Exhibit No.		Description

1.1*		An English translation of ~~our~~the Amended and Restated Bylaws (~~Estatutos Sociales~~)(Estatutos Sociales) of GACN, ~~(incorporated~~as amended and restated by ~~reference to~~resolution of our ~~annual report~~shareholders’ meeting held on ~~Form 20-F for the year ended December~~May 31, ~~2013 filed on April 25, 2014).~~2017.

2.1		Deposit Agreement among GACN, the Bank of New York and all registered holders from time to time of any American Depositary Receipts, including the form of American Depositary Receipt (incorporated by reference to our amended registration statement on Form F-1/A (File No. 333-138710) filed on November 22, 2006) (effective through December 26, 2012).

~~2.2~~		Deposit Agreement among GACN, JPMorgan Chase Bank, N.A., and all registered holders from time to time of any American Depositary Receipts, including the form of American Depositary Receipt (incorporated by reference to our Form F-6 (File No. 333-185511) filed on December 14, 2012) (effective as of December 27, 2012).

2.2		Amendment No. 1 to the Deposit Agreement among GACN, JPMorgan Chase Bank, N.A., and all registered holders from time to time of any American Depositary Receipts, including the form of American Depositary Receipt (incorporated by reference to our Form F-6 (File No. 333-185511), post-effective amendment, filed on August 9, 2016).

2.3		Offering Supplement for GACN’s ~~Ps. 1,500,000~~Ps.1,500,000 thousand offering in 10-year peso-denominated notes (~~certificados~~(certificados bursá~~tiles~~)tiles), issued March 25, 2013 (incorporated by reference to our annual report on Form 20-F for the year ended December 31, 2013 filed on April 25, 2014).

2.4*2.4		Offering Supplement for GACN’s ~~Ps. 3,000,000~~Ps.3,000,000 thousand offering in seven-year peso-denominated notes (~~certificados~~(certificados bursá~~tiles~~)tiles), issued June 16, ~~2014.~~2014 (incorporated by reference to our annual report on Form 20-F for the year ended December 31, 2014 filed on April 23, 2015).

3.1		Trust Agreement among GACN, Operadora Mexicana de Aeropuertos, S.A. de C.V. (now Servicios de Tecnología Aeroportuaria, S.A. de C.V.), or SETA, and Banco Nacional de Comercio Exterior, S.N.C., División Fiduciaria, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

3.2		Amendment to the Trust Agreement among GACN, SETA, and Bancomext, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

3.3		Voting Agreement among Aeroinvest, ADPM, SETA, Banco Nacional de Comercio Exterior, S.N.C., División Fiduciaria and Banca Múltiple, J.P. Morgan Grupo Financiero, División Fiduciaria, English translation (incorporated by reference to our annual report on Form 20-F for the year ended December 31, 2006 filed on July 2, 2007).

~~4.1~~3.4		~~Amended~~Trust Agreement among SETA, ADPM and ~~Restated Monterrey Airport Concession Agreement and annexes thereto, English translation and a schedule highlighting~~Banco Invex, S.A., Institución de Banca Múltiple, Invex Grupo Financiero, Fiduciario, with the ~~differences between this concession and GACN’s other concessions~~appearance of GACN (incorporated by reference to our ~~registration statement~~annual report on Form ~~F-1 (File No. 333-138710)~~20-F for the year ended December 31, 2015 filed on ~~November 15, 2006)~~April 27, 2015).

177

~~205~~

~~Exhibit No.~~
Exhibit No.		Description

~~4.2~~ 4.1		Participation Agreement among GACN, the Mexican Federal Government through the Ministry of Communications and Transportation, NAFIN, Servicios Aeroportuarios del Centro Norte, S.A. de C.V., Aeropuerto de Acapulco, S.A. de C.V., Aeropuerto de Chihuahua, S.A. de C.V., Aeropuerto de Ciudad Juárez, S.A. de C.V., Aeropuerto de Culiacán, S.A. de C.V., Aeropuerto de Durango, S.A. de C.V., Aeropuerto de Mazatlán, S.A. de C.V., Aeropuerto de Monterrey, S.A. de C.V., Aeropuerto de Reynosa, S.A. de C.V., Aeropuerto de Tampico, S.A. de C.V., Aeropuerto de Torreón, S.A. de C.V., Aeropuerto de San Luis Potosí, S.A. de C.V., Aeropuerto de Zacatecas, S.A. de C.V. and Aeropuerto de Zihuatanejo, S.A. de C.V. (collectively, the “Concession Companies”), SETA, Constructoras ICA, S.A. de C.V., Aéroports de Paris and Vinci, S.A., with the appearance of Bancomext, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

~~4.3~~4.2		Amendment to Participation Agreement among GACN, the Mexican Federal Government through the Ministry of Communications and Transportation, NAFIN, Servicios Aeroportuarios del Centro Norte, S.A. de C.V., the Concession Companies, SETA, Constructoras ICA, S.A. de C.V. and Aéroports de Paris, with the appearance of Bancomext, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

~~4.4~~4.3		Agreement entered into among NAFIN, Aeroinvest, SETA and the Mexican Federal Government through the Ministry of Communications and Transportation with respect to certain provisions of the Participation Agreement, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

~~4.5~~4.4		Technical Assistance and Transfer of Technology Agreement among the Registrant, Servicios Aeroportuarios del Centro Norte, S.A. de C.V., the Concession Companies, SETA and Constructoras ICA, S.A. de C.V., Aéroports de Paris and Vinci, S.A., English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

4.5		Amendment to Technical Assistance and Transfer of Technology Agreement among the Registrant, Servicios Aeroportuarios del Centro Norte, S.A. de C.V., the Concession Companies, SETA and Constructoras ICA, S.A. de C.V., Aéroports de Paris and Vinci, S.A., English translation (incorporated by reference to our annual report on Form 20-F for the year ended December 31, 2015 filed on April 27, 2015).

4.6		Shareholders Agreement among NAFIN, SETA and Bancomext, with the appearance of the Registrant and the Mexican Federal Government through the Ministry of Communications and Transportation, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

~~4.7~~		Termination Agreement in respect of the Shareholders Agreement among NAFIN, SETA and Bancomext, with the appearance of GACN and the Mexican Federal Government through the Ministry of Communications and Transportation, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

~~4.8~~		Stock Purchase Agreement between the Mexican Federal Government through the Ministry of Communications and Transportation and SETA, with the appearance of Constructoras ICA, S.A. de C.V., Aéroports de Paris and Vinci, S.A., and the Mexican Federal Treasury, English translation (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

~~4.9~~		Lease Agreement among Aeropuerto Internacional de la Ciudad de México S.A. de C.V. and Consorcio Grupo Hotelero T2 S.A. de C.V. dated as of March 22, 2007 (incorporated by reference to our annual report on Form 20-F for the year ended December 31, 2008 filed on June 11, 2009).

8.1		List of subsidiaries of GACN (incorporated by reference to our registration statement on Form F-1 (File No. 333-138710) filed on November 15, 2006).

11.1		Code of Ethics of the Company (incorporated by reference to our annual report on Form 20-F for the year ended December 31, 2006, filed on July 2, 2007).

12.1*		Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of ~~2002.~~

~~206~~2002, dated April 27, 2018.

178


Exhibit No.		Description

101.SCH*		XBRL Taxonomy Extension Schema Document.

101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*		XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF*		XBRL Taxonomy Extension Definition Document.

*Filed herewith

~~207~~

179

SIGNATURES

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this registration statement on its behalf.


	GRUPO AEROPORTUARIO DEL CENTRO NORTE, S.A.B. DE C.V.


	By: ~~/s/ José Luis Guerrero Cortés~~	/s/ Ruffo Pérez Pliego del Castillo
		Name: ~~José Luis Guerrero Cortés~~Ruffo Pérez Pliego del Castillo

		Title: Chief Financial Officer

Dated: April ~~27, 2015~~30, 2018

*****

180

Grupo Aeroportuario del Centro Norte, S. A. B. de C. V. and Subsidiaries (Subsidiary of Controladora de Operaciones de Infraestructura, S.A. de C.V.)	~~Grupo Aeroportuario del Centro Norte, S.A.B. de C.V.~~ ~~and Subsidiaries~~
	~~(Subsidiary of Aeroinvest, S. A. de C. V.)~~

	~~Consolidated Financial Statements~~ ~~for the Years Ended December 31, 2014, 2013 and 2012, and Report of Independent Registered Public Accounting Firm Dated April 27, 2015~~

Consolidated Financial Statements for the Years Ended December 31, 2017, 2016 and 2015, and Report of Independent Registered Public Accounting Firm Dated April 27, 2018

F-1

Grupo Aeroportuario del Centro Norte, ~~S.A.B.~~S. A. B. de ~~C.V.~~C. V. and Subsidiaries

(Subsidiary of ~~Aeroinvest, S. A.~~Controladora de ~~C. V.~~Operaciones de Infraestructura, S.A. de C.V.)

Report of Independent Registered Public Accounting Firm and Consolidated Financial Statements for the Years Ended December 31, ~~2014, 2013~~2017, 2016 and ~~2012~~2015

~~Table of contents~~	~~Page~~

~~Report~~Table of ~~Independent Registered Public Accounting Firm~~contents		~~F-1~~Page

~~Consolidated Statements~~Report of ~~Financial Position~~Independent Registered Public Accounting Firm		~~F-2~~

~~Consolidated Statements of Income and Other Comprehensive Income~~		~~F-3~~

~~Consolidated Statements of Changes in Shareholders’ Equity~~		F-4

Consolidated Statements of ~~Cash Flows~~Financial Position		~~F-5~~F-6

Consolidated Statements of Income and Other Comprehensive Income		F-8

Consolidated Statements of Changes in Shareholders’ Equity		F-10

Consolidated Statements of Cash Flows		F-11

Notes to Consolidated Financial Statements		~~F-6~~F-12

F-2

Index for Notes to Consolidated Financial Statements

~~Note~~	~~Description~~	~~Page~~
1	~~Nature of business~~		~~F–6~~
2	~~Significant events~~		~~F–6~~
3Note		Description		Page
1		Nature of business operations		F-12
2		Significant events		F-12
3		Basis of presentation and consolidation		~~F–6~~F-13
4	~~Significant accounting policies~~		~~F–8~~Significant accounting policies		F-15
5		Critical accounting judgments and key sources of estimation uncertainty		~~F–23~~F-33
6		Cash and cash equivalents		~~F–25~~F-34
7	~~Accounts receivable~~		~~F–25~~Accounts receivable		F-34
8		Other accounts receivable and prepaid expenses		~~F–26~~F-36
9		Property, leasehold improvements and equipment		~~F–27~~F-36
10		Investment in airport concessions		~~F–28~~F-37
11	~~Composition of GACN~~		~~F–29~~
12Composition of GACN	~~Trade accounts payable~~		~~F–31~~F-40
1312		Trade accounts payable		F-41
13		Payable taxes and other accrued expenses		~~F–31~~F-41
14	~~Short-term debt~~		~~F–31~~
15	~~Long-term~~Short-term debt		~~F–31~~F-41
1615	~~Major maintenance provision~~		~~F–33~~
17Long-term debt	~~Labor obligations~~		~~F–33~~F-41
1816	~~Leases~~		~~F–36~~
19Major maintenance provision	~~Income taxes~~		~~F–37~~F-43
2017	~~Contingencies and commitments~~		~~F–40~~
21Labor obligations	~~Risk management~~		~~F–43~~F-44
2218	~~Shareholders’ equity~~		~~F–48~~Leases		F-47
2319		Income taxes		F-48
20		Commitment and contingencies		F-51
21		Financial risk management		F-54
22		Shareholders’ equity		F-60
23		Accumulated other comprehensive income		~~F–49~~F-62
24	~~Other income~~		~~F–49~~Other income		F-62
25		Related party balances and transactions		~~F–50~~F-62
26	~~Business segment data~~		~~F–51~~
27Operating segment data	~~Revenues~~		~~F–54~~F-64
2827	~~Cost of services~~		~~F–56~~
29Revenues	~~Subsequent events~~		~~F–56~~F-68
3028		Cost of services		F-70
29		Authorization for the issuance of the consolidated financial statements		~~F–56~~F-70

F-3

Report of Independent Registered Public Accounting Firm Toto the Shareholders and Board of Directors ~~and Shareholders~~ of Grupo Aeroportuario del Centro Norte, S. A. B. de C. V.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Grupo Aeroportuario del Centro Norte, S. A. B. de C. V., and subsidiaries (the ~~“Company”)~~Company) as of December 31, ~~2014~~2017, 2016 and ~~2013, and~~2015, the related consolidated statements of income and other comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, ~~2014. These~~2017 and the related notes (collectively referred to as the "consolidated financial ~~statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.~~

~~We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States)~~statements"). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, ~~such~~the consolidated financial statements present fairly, in all material respects, the ~~consolidated~~ financial position of ~~Grupo Aeroportuario del Centro Norte, S. A. B. de C. V. and subsidiaries~~the Company as of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, and the results of its operations and ~~their~~its cash flows for each of the three years in the period ended December 31, ~~2014,~~2017, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Our audits also comprehended the translation of ~~the~~ Mexican peso amounts into U.S. dollar amounts and, in our opinion, such translation has been made in conformity with the basis stated in Note ~~3c. The translation of~~3 d. to the consolidated financial ~~statement~~statements. Such U.S. dollar amounts ~~into U.S. dollars and the translation of the financial statements into English have been made~~are presented solely for the convenience of readers ~~in the United States~~outside of ~~America.~~

Mexico.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, ~~2014,~~2017, based on the criteria established in Internal ~~Control-Integrated~~Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated April 27, ~~2015~~2018 expressed an unqualified opinion on the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

F-4

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Galaz, Yamazaki, Ruiz Urquiza, ~~S. C.~~S.C.

Member of Deloitte Touche Tohmatsu Limited

/s/ ~~Emeterio Barrón Perales~~Felipe Antonio Mercado Muñoz

~~C. P. C. Emeterio Barrón Perales~~

C.P.C. Felipe Antonio Mercado Muñoz

Monterrey, Nuevo León, ~~México~~

Mexico

April 27, ~~2015~~2018

We have served as the Company’s auditor since 2000.

~~F-1~~

F-5

Grupo Aeroportuario del Centro Norte, ~~S.A.B.~~S. A. B. de ~~C.V.~~C. V. and Subsidiaries

(Subsidiary of ~~Aeroinvest, S. A.~~Controladora de ~~C. V.~~Operaciones de Infraestructura, S.A. de C.V.)

Consolidated Statements of Financial Position

(Thousands of Mexican ~~pesos~~)pesos)

Thousands of U.S.
dollars (Convenience
Translation Note 3c)
December 31,

December 31,

Thousands of U.S.
dollars (Convenience
Translation Note 3c)
December 31,

December 31,

2014

2014

2013

2014

2014

2013

Current assets:

Current liabilities:

Cash and cash equivalents (Note 6)

$
190,579

Ps.
2,808,149

Ps.
  1,534,006

Short-term debt (Note 14)

$
-

Ps.
-

Ps.
  99,421

Accounts receivable, net (Note 7)

21,710

319,890

304,769

Current portion of long-term debt (Note 15)

3,195

47,076

33,588

Recoverable taxes

10,372

152,827

311,399

Current portion of major maintenance provision (Note 16)

12,535

184,709

271,344

Prepayments for construction to Ingenieros Civiles Asociados, S. A. de
   C.V. (related party)

1,702

25,084

32,001

Trade accounts payable (Note 12)

17,479

257,556

226,184

Other accounts receivable and prepaid expenses
(Note 8)

6,678

98,393

94,763

Payable taxes and other accrued expenses (Note 13)

18,272

269,228

219,012

Accounts payable to related parties (Note 25)

4,894

72,111

107,440

Total current assets

231,041

3,404,343

2,276,938

Total current liabilities

56,375

830,680

956,989

Non-current assets:

Non-current liabilities:

Property, leasehold improvements and equipment, net (Note 9)

155,028

2,284,314

2,165,766

Long-term debt (Note 15)

317,434

4,677,325

2,970,526

Major maintenance provision (Note 16)

27,695

408,080

357,262

Investment in airport concessions, net (Note 10)

419,434

6,180,277

6,092,046

Guarantee deposits

6,850

100,941

43,352

Labor obligations (Note 17)

6,401

94,313

82,497

Other assets, net

3,025

44,578

25,332

Deferred income taxes (Note 19)

12,890

189,938

203,433

Deferred income taxes (Note 19)

34,230

504,368

451,371

Non-current liabilities

371,270

5,470,597

3,657,070

Total liabilities

427,645

6,301,277

4,614,059

Contingencies and commitments (Note 20)

Shareholders’ equity (Note 22)

Contributed capital

Common stock

101,191

1,491,023

2,698,691

Additional paid-in capital

2,021

29,786

29,786

103,212

1,520,809

2,728,477

Earned capital:

Reserve for repurchase of shares

16,393

241,543

373,869

Retained earnings

292,687

4,312,686

3,287,992

Accumulated other comprehensive income

(653
)
(9,625
)
(9,931
)

308,427

4,544,604

3,651,930

Controlling interest

411,639

6,065,413

6,380,407

Total non-current assets

611,717

9,013,537

8,734,515

Non-controlling interest

3,474

51,190

16,987

Total shareholders’ equity

415,113

6,116,603

6,397,394

Total assets

$
842,758

Ps.
12,417,880

Ps.
11,011,453

Total liabilities and shareholders’ equity

$
842,758

Ps.
  12,417,880

Ps.
  11,011,453


		Thousands of
		U.S. dollars
		(Convenience
		Translation
		Note 3 d)		December 31,
	Notes	2017		2017		2016		2015
Assets:
Cash and cash equivalents	6	U.S.$	118,214	Ps.	2,333,007	Ps.	3,005,792	Ps.	2,605,196
Other investments held to maturity			2,500		49,338		—		60,445
Accounts receivable, net	7		31,961		630,757		714,130		390,785
Recoverable taxes			6,598		130,205		104,114		92,531
Repayments for constructions to related parties	25		4,967		98,017		46,032		1,110
Repayments for contractors			11,068		218,442		199,486		36,683
Other accounts receivable and prepaid expenses	8		1,969		38,856		28,905		30,024
Total current assets			177,277		3,498,622		4,098,459		3,216,774

Non-current assets:

Property, leasehold improvements and equipment, net	9		131,814		2,601,397		2,444,205		2,370,975

Investment in airport concessions, net	10		387,548		7,648,417		6,513,514		6,348,605

Other assets, net			5,286		104,330		109,042		110,722

Deferred income taxes	19		17,635		348,034		380,103		463,260

Total non-current assets			542,283		10,702,178		9,446,864		9,293,562
Total assets		U.S.$	719,560	Ps.	14,200,800	Ps.	13,545,323	Ps.	12,510,336

F-6


		Thousands of
		U.S. dollars
		(Convenience
		Translation
		Note 3 d)		December 31,
	Notes	2017		2017		2016		2015
Liabilities and shareholders’ equity:
Current liabilities:
Current portion of long-term debt	15	U.S.$	2,577	Ps.	50,852	Ps.	56,122	Ps.	55,433
Current major maintenance provision	16		11,788		232,645		160,607		220,410
Trade accounts payable	12		12,971		255,982		262,073		253,358
Payable taxes and other accrued expenses	13		22,030		434,772		489,201		372,060
Accounts payable to related parties	25		6,588		130,022		140,328		67,521
Total current liabilities			55,954		1,104,273		1,108,331		968,782

Non-current liabilities:
Long-term debt	15		232,193		4,582,420		4,637,743		4,658,349
Major maintenance provision	16		31,668		624,979		509,046		383,293
Guarantee deposits			15,424		304,395		272,511		241,923
Labor obligations	17		6,459		127,479		111,921		106,414
Other long-term liabilities			1,564		30,858
Deferred income taxes	19		9,986		197,081		218,791		201,048
Total non-current liabilities			297,294		5,867,212		5,750,012		5,591,027
Total liabilities			353,248		6,971,485		6,858,343		6,559,809

Commitment and contingencies	20

Shareholders’ equity	22
Contributed capital:
Common stock			15,373		303,394		303,644		302,398
Additional paid-in capital			1,509		29,786		29,786		29,786
			16,882		333,180		333,430		332,184
Earned capital:
Reserve for repurchase of shares			74,284		1,466,016		1,383,124		1,041
Retained earnings			267,624		5,281,662		4,846,045		5,546,458
Accumulated other comprehensive loss			(557)		(10,991)		(8,052)		(10,525)
			341,351		6,736,687		6,221,117		5,536,974
Controlling interest			358,233		7,069,867		6,554,547		5,869,158
Non-controlling interest			8,079		159,448		132,433		81,369

Total shareholders’ equity			366,312		7,229,315		6,686,980		5,950,527
Total liabilities and shareholders’ equity		U.S.$	719,560	Ps.	14,200,800	Ps.	13,545,323	Ps.	12,510,336

The accompanying notes are an integral part of these consolidated financial statements.

~~F-2~~

F-7

Grupo Aeroportuario del Centro Norte, ~~S.A.B.~~S. A. B. de ~~C.V.~~C. V. and Subsidiaries

(Subsidiary of ~~Aeroinvest, S. A.~~Controladora de ~~C. V.~~Operaciones de Infraestructura, S.A. de C.V.)

Consolidated Statements of Income and Other Comprehensive Income

~~Comprehensive Income~~

(Thousands of Mexican pesos, except per share data)


		Thousands of U.S.
		dollars
		(Convenience
		Translation
		Note 3 d)		For the years ended December 31,
	Notes	2017		2017		2016		2015
Revenues:
Aeronautical services	27	U.S.$	220,266	Ps.	4,347,031	Ps.	3,872,735	Ps.	3,033,130
Non-aeronautical services	27		73,793		1,456,338		1,332,762		1,111,541
Construction services	10		67,212		1,326,458		344,772		347,988
Total revenues			361,271		7,129,827		5,550,269		4,492,659

Operating costs and expenses:
Cost of services, excluding depreciation and amortization	28		49,711		981,065		900,141		836,133
Major maintenance provision	16		14,747		291,038		262,871		174,293
Cost of construction	10		67,212		1,326,458		344,772		347,988
Administrative expenses			29,790		587,917		642,345		558,222
Right to use airport facilities			13,748		271,331		244,215		209,771
Technical assistance fees	25		6,844		135,074		117,987		97,818
Depreciation and amortization			15,161		299,205		276,634		238,809
Other income, net	24		(70)		(1,380)		(22,250)		(6,930)
Total operating costs and expenses			197,143		3,890,708		2,766,715		2,456,104

Operating income			164,128		3,239,119		2,783,554		2,036,555

Interest expense			17,878		352,822		330,694		334,764
Interest income			(6,450)		(127,290)		(199,600)		(80,740)
Exchange loss, net			3,196		63,072		29,177		33,784
			14,624		288,604		160,271		287,808

Income before income taxes			149,504		2,950,515		2,623,283		1,748,747

Income tax expense	19		41,199		813,073		746,782		512,110

Consolidated net income for the year			108,305		2,137,442		1,876,501		1,236,637
Other comprehensive (loss) income:
Items that will not be subsequently reclassified to profit or loss:

F-8

Thousands of
U.S. dollars
(Convenience
Translation Note 3c)
December 31,

Year ended December 31,

2014

2014

2013

2012

Revenues:

Aeronautical services (Note 27)

$
171,883

Ps.
2,532,666

Ps.
2,268,869

Ps.
2,130,663

Non-aeronautical services (Note 27)

60,381

889,694

796,501

688,957

Construction services

20,857

307,327

352,688

321,718

Total revenues

253,121

3,729,687

3,418,058

3,141,338

Operating costs and expenses:

Cost of services, excluding depreciation and amortization (Note 28)

52,457

772,946

725,329

656,217

Major maintenance provision (Note 16)

12,211

179,932

263,167

164,208

Cost of construction

20,857

307,327

352,688

321,718

Administrative expenses

36,379

536,034

501,233

457,749

Right to use airport facilities

11,651

171,670

148,159

137,028

Technical assistance fees (Note 25)

5,596

82,461

66,643

67,365

Depreciation and amortization

15,201

223,982

201,226

186,803

Other income, net (Note 24)

(926)

(13,654)

(49,782)

(9,924)

Total operating costs and expenses

153,426

2,260,698

2,208,663

1,981,164

Operating income

99,695

1,468,989

1,209,395

1,160,174

Interest expense

17,942

264,368

209,359

103,846

Interest income

(5,236)

(77,147)

(72,650)

(27,764)

Exchange (gain) loss, net

1,524

22,463

6,198

(23,168)

14,230

209,684

142,907

52,914

Income before income taxes

85,465

1,259,305

1,066,488

1,107,260

Income tax (benefit) expense (Note 19)

15,768

232,345

(134,876)

288,172

Consolidated net income for the year

69,697

1,026,960

1,201,364

819,088

Other comprehensive income

Items that will not be subsequently reclassified to profit or loss

Actuarial gain (loss) on labor obligations

30

437

(2,851)

(11,313)

Income tax relating to actuarial gain (loss) on labor obligations (Notes 17 and 23)

(9)

(131)

843

3,390

Total other comprehensive income (loss)

21

306

(2,008)

(7,923)

Total comprehensive income for the year

$
69,718

Ps.
1,027,266

Ps.
1,199,356

Ps.
811,165

Consolidated net income attributable to:

Controlling interest

$
69,543

Ps.
1,024,694

Ps.
1,199,636

Ps.
818,121

Non-controlling interest

154

2,266

1,728

967

Consolidated net income for the year

$
69,697

Ps.
1,026,960

Ps.
1,201,364

Ps.
819,088

Comprehensive net income attributable to:

Controlling interest

$
69,564

Ps.
1,025,000

Ps.
1,197,628

Ps.
810,198

Non-controlling interest

154

2,266

1,728

967

Total comprehensive income for the year

$
69,718

Ps.
1,027,266

Ps.
1,199,356

Ps.
811,165

Basic and diluted earnings per share of controlling interest:

$
0.1754

Ps.
2.5844

Ps.
3.0062

Ps.
2.0501

Weighted average shares outstanding

396,493,090

399,052,350

399,060,153


		Thousands of U.S.
		dollars
		(Convenience
		Translation
		Note 3 d)		For the years ended December 31,
	Notes	2017		2017		2016		2015
Actuarial (loss) gain on labor obligations	17 and 23		(213)		(4,199)		3,533		(1,286)
Income tax relating to actuarial loss (gain) on labor obligations	23		64		1,260		(1,060)		386
Total other comprehensive (loss) income			(149)		(2,939)		2,473		(900)

Total comprehensive income for the year		U.S.$	108,156	Ps.	2,134,503	Ps.	1,878,974	Ps.	1,235,737
Consolidated net income attributable to:
Controlling interest		U.S.$	107,805	Ps.	2,127,576	Ps.	1,870,187	Ps.	1,233,772
Non-controlling interest			500		9,866		6,314		2,865
		U.S.$	108,305	Ps.	2,137,442	Ps.	1,876,501	Ps.	1,236,637
Comprehensive income attributable to:
Controlling interest		U.S.$	107,656	Ps.	2,124,637	Ps.	1,872,660	Ps.	1,232,872
Non-controlling interest			500		9,866		6,314		2,865
		U.S.$	108,156	Ps.	2,134,503	Ps.	1,878,974	Ps.	1,235,737
Basic and diluted earnings per share of controlling interest		U.S.$	0.27385	Ps.	5.4046	Ps.	4.7614	Ps.	3.1328
Weighted average shares outstanding			393,660,889		393,660,889		392,784,322		393,826,266

The accompanying notes are an integral part of these consolidated financial statements.

~~F-3~~

F-9

Grupo Aeroportuario del Centro Norte, ~~S.A.B.~~S. A. B. de ~~C.V.~~C. V. and Subsidiaries

(Subsidiary of ~~Aeroinvest, S. A.~~Controladora de ~~C. V.~~Operaciones de Infraestructura, S.A. de C.V.)

Consolidated Statements of Changes in Shareholders’ Equity

(Thousands of Mexican pesos, except ~~for~~ share data (Note 22))

Contributed Capital

Earned capital

Shares

Common
stock

Additional
paid-in
capital

Total
contributed
capital

Reserve for
repurchase
of shares

Retained
earnings

Accumulated
other
comprehensive
income

Total
earned
capital

Total
controlling
interest

Total non-
controlling
interest

Total
shareholders’
equity

Balance as of January 1, 2012

398,848,700

Ps.
4,394,444

Ps.
29,786

Ps.
4,424,230

Ps.
397,557

Ps.
1,255,137

Ps.
-

Ps.
1,652,694

Ps.
6,076,924

Ps.
7,577

Ps.
6,084,501

Decrease in common stock (Ps. 1.25 pesos per share)

-

(500,000)

-

(500,000)

-

-

-

-

(500,000)

-

(500,000)

Sale (repurchase) of shares, net

278,827

2,724

-

2,724

4,503

-

-

4,503

7,227

-

7,227

Increase in share repurchase reserve

-

-

-

-

2,714

(2,714)

-

-

-

-

-

Cancellation of dividends over treasury shares

-

-

-

-

-

13,038

-

13,038

13,038

-

13,038

Increase in non-controlling interest

-

-

-

-

-

-

-

-

-

25

25

Consolidated comprehensive income

-

-

-

-

-

818,121

(7,923)

810,198

810,198

967

811,165

Balance as of December 31, 2012

399,127,527

3,897,168

29,786

3,926,954

404,774

2,083,582

(7,923)

2,480,433

6,407,387

8,569

6,415,956

Decrease in common stock (Ps. 3.00 per share)

-

(1,200,000)

-

(1,200,000)

-

-

-

-

(1,200,000)

-

(1,200,000)

Repurchase of shares, net

(568,310)

(3,832)

-

(3,832)

(20,776)

-

-

(20,776)

(24,608)

-

(24,608)

Transfer of cumulative adjustment to par value of shares

-

5,355

-

5,355

(5,355)

-

-

(5,355)

-

-

-

Decrease in share repurchase reserve

-

-

-

-

(4,774)

4,774

-

-

-

-

-

Increase in non-controlling interest

-

-

-

-

-

-

-

-

6,690

6,690

Consolidated comprehensive income

-

-

-

-

-

1,199,636

(2,008)

1,197,628

1,197,628

1,728

1,199,356

Balance as of December 31, 2013

398,559,217

2,698,691

29,786

2,728,477

373,869

3,287,992

(9,931)

3,651,930

6,380,407

16,987

6,397,394

Decrease in common stock (Ps. 3.00 per share)

-

(1,200,000)

-

(1,200,000)

-

-

-

-

(1,200,000)

-

(1,200,000)

Repurchase of shares, net

(3,179,367)

(7,668)

-

(7,668)

(132,326)

-

-

(132,326)

(139,994)

-

(139,994)

Increase in non-controlling interest

-

-

-

-

-

-

-

-

-

31,937

31,937

Consolidated comprehensive income

-

-

-

-

-

1,024,694

306

1,025,000

1,025,000

2,266

1,027,266

Balance as of December 31, 2014

395,379,850

Ps.
1,491,023

Ps.
29,786

Ps.
1,520,809

Ps.
241,543

Ps.
4,312,686

Ps.
(9,625)

Ps.
4,544,604

Ps.
6,065,413

Ps.
51,190

Ps.
6,116,603

~~The accompanying notes are an integral part of these consolidated financial statements~~.

~~F-4~~


		Contributed capital						Retained earnings				Accumulated
						Total		Reserve for				other						Total non-		Total
	Number of			Additional		contributed		repurchase of		Retained		comprehensive		Total earned		Total controlling		controlling		shareholders’
	shares	Common stock		paid-in capital		capital		shares		earnings		income		capital		interest		interest		equity

Balance as of January 1, 2015	395,379,850	Ps.	1,491,023	Ps.	29,786	Ps.	1,520,809	Ps.	241,543	Ps.	4,312,686	Ps.	(9,625)	Ps.	4,544,604	Ps.	6,065,413	Ps.	51,190	Ps.	6,116,603

Decrease in common stock (Ps. 3.00 per share)	—		(1,200,000)		—		(1,200,000)		—		—		—		—		(1,200,000)		—		(1,200,000)
Repurchase of shares, net	(3,223,473)		11,375		—		11,375		(240,502)		—		—		(240,502)		(229,127)		—		(229,127)
Increase in a non-controlling interest	—		—		—		—		—		—		—		—		—		27,314		27,314
Consolidated comprehensive income	—		—		—		—		—		1,233,772		(900)		1,232,872		1,232,872		2,865		1,235,737

Balance as of December 31, 2015	392,156,377		302,398		29,786		332,184		1,041		5,546,458		(10,525)		5,536,974		5,869,158		81,369		5,950,527

Issuance of shares, net	1,614,596		1,246		—		1,246		183,124		—		—		183,124		184,370		—		184,370
Dividends paid	—		—		—		—		—		(1,371,641)		—		(1,371,641)		(1,371,641)		—		(1,371,641)
Increase in non-controlling interest	—		—		—		—		—		—		—		—		—		44,750		44,750
Increase in reserve for repurchase of shares	—		—		—		—		1,198,959		(1,198,959)		—		—		—		—		—
Consolidated comprehensive income	—		—		—				—		1,870,187		2,473		1,872,660		1,872,660		6,314		1,878,974

Balance as of December 31, 2016	393,770,973		303,644		29,786		333,430		1,383,124		4,846,045		(8,052)		6,221,117		6,554,547		132,433		6,686,980

Repurchase of shares, net	(324,507)		(250)		—		(250)		(33,984)		—		—		(33,984)		(34,234)		—		(34,234)
Dividends paid	—		—		—		—		—		(1,575,083)		—		(1,575,083)		(1,575,083)		—		(1,575,083)
Increase in non-controlling interest	—		—		—		—		—		—		—		—		—		17,149		17,149
Increase in reserve for repurchase of shares	—		—		—		—		116,876		(116,876)		—		—		—		—		—
Consolidated comprehensive income	—		—		—		—		—		2,127,576		(2,939)		2,124,637		2,124,637		9,866		2,134,503

Balance as of December 31, 2017	393,446,466	Ps.	303,394	Ps.	29,786	Ps.	333,180	Ps.	1,466,016	Ps.	5,281,662	Ps.	(10,991)	Ps.	6,736,687	Ps.	7,069,867	Ps.	159,448	Ps.	7,229,315

~~Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. and Subsidiaries~~

~~(Subsidiary of Aeroinvest, S. A. de C. V.)~~

~~Consolidated Statements of Cash Flows~~

~~(Thousands of Mexican pesos)~~

Thousands of
U.S. dollars
(Convenience
Translation Note
3c)
December 31,

Year ended December 31,

2014

2014

2013

2012

Cash flows from operating activities:

Income before income taxes

$
85,465

Ps.
1,259,305

Ps.
1,066,488

Ps.
1,107,260

Adjustments for:

Depreciation and amortization

15,201

223,982

201,226

186,803

Major maintenance provision

12,211

179,932

263,167

164,208

Increase (decrease) in allowance for doubtful accounts

88

1,296

(3,727
)
(6,689
)
Loss (gain) on sale of property and equipment

112

1,651

(30,967
)
-

Interest income

(5,236
)
(77,147
)
(72,650
)
(27,764
)
Interest expense

17,942

264,368

209,359

103,846

Unrealized exchange rate fluctuation

1,901

28,015

3,340

(18,313
)

127,684

1,881,402

1,636,236

1,509,351

Trade accounts receivable

(1,114
)
(16,417
)
(13,234
)
66,121

Recoverable tax

10,762

158,572

(108,452
)
(30,997
)
Other accounts receivable and prepaid expenses

424

6,238

(46,759
)
(19,124
)
Trade accounts payable

1,203

17,728

42,014

3,896

Payable taxes and other accrued expenses

(6,096
)
(89,826
)
(133,557
)
(213,907
)
Income taxes paid

(10,978
)
(161,758
)
(275,701
)
(85,469
)
Related parties, net

(2,398
)
(35,329
)
113,962

219,224

Major maintenance provision payments

(14,909
)
(219,680
)
(228,849
)
(201,970
)
Guarantee deposits and retirement benefit plan

4,740

69,842

19,586

13,288

Net cash flows from operating activities

109,318

1,610,772

1,005,246

1,260,413

Cash flows from investing activities:

Acquisition of property, leasehold improvements and equipment

(11,692
)
(172,285
)
(79,641
)
(56,895
)
Loans to related parties

(6,787
)
(100,000
)
-

-

Proceeds from related party loans

6,787

100,000

-

-

Other non-current assets

(1,412
)
(20,803
)
(669
)
(2,520
)
Proceeds from sale of property and equipment

29

441

64,203

-

Insurance recovery on damaged equipment

2,300

33,887

19,628

-

Investment in airport concessions

(19,697
)
(290,231
)
(347,051
)
(362,233
)
Interest received

5,236

77,147

72,650

27,764

Net cash used in investing activities

(25,236
)

(371,844
)

(270,880
)

(393,884
)
Cash flows from financing activities:

Proceeds from long-term debt

267,280

3,938,325

2,497,524

885,689

Payments of long-term debt

(159,484
)
(2,349,961
)
(1,485,538
)
(336,292
)
Interest paid

(16,424
)
(242,006
)
(149,949
)
(96,035
)
Dividends paid

-

-

-

(198,344
)
Decrease of common stock

(80,665
)
(1,188,581
)
(1,196,912
)
(500,000
)
(Repurchase) sale of shares, net

(10,485
)
(154,499
)
(24,608
)
7,227

Increase in non-controlling interest

2,168

31,937

6,690

25

Net cash used in financing activities

2,390

35,215

(352,793
)

(237,730
)
Net increase in cash and cash equivalents

86,472

1,274,143

381,573

628,799

Cash and cash equivalents at the beginning of year

104,107

1,534,006

1,152,433

523,634

Cash and cash equivalents at the end of year

$
190,579

Ps.
2,808,149

Ps.
1,534,006

Ps.
1,152,433

Non cash financing and investing activities which are not reflected in the consolidated statements of cash flow:

Acquisition of property, leasehold improvements and equipment

Ps.
12,452

Ps.
22,350

Ps.
10,208

Investment in airport concessions

51,308

30,112

24,475

Capital reimbursement

-

3,088

-

The accompanying notes are an integral part of these consolidated financial statements.

~~F-5~~

F-10

Grupo Aeroportuario del Centro Norte, ~~S.A.B.~~S. A. B. de ~~C.V.~~C. V. and Subsidiaries

(Subsidiary of ~~Aeroinvest,~~Controladora de Operaciones de Infraestructura, S.A. de C.V.)

Consolidated Statements of Cash Flows

(Thousands of Mexican pesos)

Thousands of U.S.

dollars

(Convenience

Translation

Note 3 d)

Year ended December 31,


2017

2017

2016

2015
Cash flows from operating activities:








Income before income taxes

U.S.$
149,504

Ps.
2,950,515

Ps.
2,623,283

Ps.
1,748,747
Adjustments for:

Depreciation and amortization

15,160

299,192

276,634

238,809
Major maintenance provision

14,747

291,038

262,871

174,293
(Decrease) increase in allowance for doubtful accounts

(535)

(10,561)

749

(1,103)
Gain on sales of property and equipment

(68)

(1,340)

(22,250)

(140)

Present value of major maintenance provision

(278)

(5,477)

(94,072)

8,268
Interest income

(6,172)

(121,813)

(105,528)

(80,740)
Interest expense

17,878

352,822

330,694

326,496
Unrealized exchange rate fluctuation

3,063

60,458

36,791

40,122

193,299

3,814,834

3,309,172

2,454,752
Trade accounts receivable, net

4,760

93,934

(324,094)

(69,792)
Recoverable tax

(1,322)

(26,091)

13,773

60,296
Repayment for contractors, other accounts receivable and prepaid expenses

110

2,195

15,567

(17,502)
Trade accounts payable

(635)

(12,536)

(72,352)

15,143
Payable taxes and other accrued expenses

(691)

(13,628)

24,274

(41,231)
Income taxes paid

(42,055)

(829,973)

(582,986)

(308,223)
Related parties, net

(3,849)

(75,966)

72,807

(3,867)
Major maintenance provision

(4,955)

(97,784)

(102,854)

(171,647)
Guarantee deposits and labor obligations

3,362

66,348

32,839

151,402
Net cash flows from operating activities

148,024

2,921,333

2,386,146

2,069,331
Cash flows by investment activities:

Acquisition of property improvements

(11,237)

(221,773)

(120,390)

(134,071)
Other non-current assets

(1,090)

(21,519)

(47,531)

(51,701)
Proceeds from sale of property and equipment

68

1,340

30,892

274
Acquisition of improvements in concessioned assets

(69,356)

(1,368,770)

(494,915)

(321,206)
Other investments held to maturity

(2,500)

(49,338)

60,445

(60,445)
Interest received

5,943

117,284

100,142

73,914
Net cash flows used by investing activities

(78,172)

(1,542,776)

(471,357)

(493,235)
Cash flow from financing activities:

Loans obtained from related parties

745

14,700

—

—
Payment of long-term debt

(2,593)

(51,168)

(58,875)

(52,765)
Interest paid

(17,760)

(350,499)

(312,796)

(324,471)
Capital reduction

-

-

—

(1,184,834)
Dividends paid

(79,810)

(1,575,083)

(1,371,642)

—
(Repurchase) issuance of shares

(1,735)

(34,234)

184,370

(244,293)
Increase in non-controlling interest

869

17,149

44,750

27,314
Net cash used by financing activities

(100,284)

(1,979,135)

(1,514,193)

(1,779,049)
Net (decrease) increase in cash and cash equivalents

(30,432)

(600,578)

400,596

(202,953)
Effects of exchange rate changes on the foreign currency cash balance

(3,659)

(72,207)

Cash and cash equivalents at the beginning of the year cash balance

152,305

3,005,792

2,605,196

2,808,149
Cash and cash equivalents at the end of the year

U.S.$
118,214

Ps.
2,333,007

Ps.
3,005,792

Ps.
2,605,196

Non cash investing activities which are not reflected in the consolidated statements of cash flows:
Acquisition of property, leasehold improvements and equipment, including finance lease

U.S.$
2,589

Ps.
51,099

Ps.
41,761

Ps.
4,032
Acquisition of other assets

227

4,484

—

—
Acquisition of improvements in concessioned assets

3,779

74,586

70,268

44,693

F-11

Table of ~~80% of the Company’s earnings before consolidated expenses, financial revenues, taxes, depreciation~~Contents

Grupo Aeroportuario del Centro Norte, S. A. B. de C. V.) and Subsidiaries

(Subsidiary of Controladora de Operaciones de Infraestructura, S.A. de C.V.)

Notes to the Consolidated Financial Statements

For the years ended December 31, ~~2014, 2013~~2017, 2016 and ~~2012~~2015

(~~Thousands~~In thousands of Mexican pesos, except as otherwise ~~indicated~~)indicated)

1.Nature of business operations

Grupo Aeroportuario del Centro Norte, S. A. B. de C. V., (“GACN” or collectively with its subsidiaries, the “Company”), is a direct subsidiary of ~~Aeroinvest, S. A.~~Controladora de ~~C. V.~~Operaciones de Infraestructura, S.A. de C.V. (“~~Aeroinvest”~~CONOISA”)~~, an~~ and indirect subsidiary of Empresas ICA, S. A. B. de ~~C. V.~~C.V. (“Empresas ICA”), the ~~consolidating~~ultimate parent company. GACN is a holding company, whose subsidiaries are engaged in the administration, operation, and use of 13 airports under a concession granted by the Mexican Government through the Ministry of Communications and Transportation. The airports are located in the following cities: Monterrey, Acapulco, Mazatlán, Zihuatanejo, Ciudad Juárez, Reynosa, Chihuahua, Culiacán, Durango, San Luis Potosí, Tampico, ~~Torreó~~.Torreón, and Zacatecas. The Company also generates revenue from hotel ~~business~~ services provided by Consorcio Grupo Hotelero T2, S.A. de C.V. (the Terminal 2 NH ~~Hotel~~Hotel) and Consorcio Hotelero Aeropuerto Monterrey, S.A.P.I. de C.V. (the Hilton Garden Inn Hotel), located inat Terminal 2 of the Mexico City International Airport ~~(“AICM”).~~and at Miguel Alemán Km. 24 SN, Apodaca, Nuevo León, respectively.

The address of the Company’s corporate office is Lázaro Cárdenas #2225 ~~5th~~5th Floor, Valle Oriente, San Pedro Garza García, Nuevo León, Zip Code 66269.

2.~~Significant events~~

a.2. Significant events~~Issuance~~

a.

GACN’s Annual Shareholders’ Meeting approves Ps. 1,600 million dividend payment

At the Annual Shareholders’ Meeting held on April 28, 2017 the shareholders approved the payment of ~~seven-year notes (~~~~certificados bursátiles~~)a cash dividend of Ps.1,600 million, to be paid in a single installment of Ps. 4 per share. The dividend was paid on May 16, 2017, for Ps. ~~3,000,000: On June 16, 2014,~~1,575,083, corresponding to the ~~Company issued~~shares outstanding.

In addition, the shareholders approved a share repurchase reserve of Ps. ~~3,000,000~~1,500 million and authorized use of up to that amount to repurchase shares during 2017 and until the next annual meeting approves the 2017 results. The reserve created in ~~seven-year long-term notes (ticker: OMA14)~~2017 was in the ~~Mexican market at a fixed annual rate of 6.85% and a demand of 2.2x. Interest payments are made every 182 days and the total~~ amount of ~~principal will be settled~~Ps. 116,875.

b.

GACN’s Extraordinary Shareholders’ Meeting approves cancellation of 6.2 million Series B shares

At the General Extraordinary Shareholders’ Meeting held on May 31, 2017, the ~~maturity date, June 7, 2021. The notes received ratings~~shareholders approved the cancellation of ~~mxAA+ by Standard and Poor’s and AA (mex) by Fitch Ratings. The objective of~~6,229,027 Series B shares, reducing the issuance were to: (i) fix interest payments and to extend the maturity profile of debt by prepaying the Ps. 1,300,000,000 of outstanding floating-rate notes issued under the 2011 Indenture and (ii) to finance the master development programs and strategic investments. The floating-rate peso-denominated notes issued under the 2011 Indenture were paid on July 11, 2014. Under the issuance, GACN and nineminimum fixed portion of the Company’s ~~13 airports guaranteed~~capital stock.

c.

GACN was included in the Dow Jones Sustainability Index for the second consecutive year

For the ~~notes thus complying~~second consecutive year, GACN has been included in the Dow Jones Sustainability Emerging Markets Index (DJSI). The index represents the highest standard for corporate sustainability based on economic, environmental, social and corporate governance criteria.

d.

GACN launches the OMA Foundation

On October 12, 2017, GACN, publicly identified as “OMA”, launched the OMA Foundation, as a platform to promote and consolidate community projects, working with ~~the minimum guarantee~~civil society organizations and social entrepreneurs. The OMA Foundation is supporting programs focused on developing technical skills,

F-12

improving physical education infrastructure and ~~amortization (EBITDA~~).equipment and providing scholarships that help Mexican youth stay in school and develop professional skills.

b.~~Opening of a U.S.$ 3,120,000 line of credit~~: On March 20, 2014, the Company signed an agreement for a U.S.$ 3,120,000 line of credit with UPS Capital Business Credit (guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”)), which expires on July 25, 2019. The Company drew down on the line of credit on April 11, 2014, and the proceeds were used to purchase rescue and firefighting equipment for the Acapulco, Chihuahua, Culiacan, San Luis Potosi and Zacatecas airports. The line of credit is guaranteed by the Acapulco, Chihuahua, Culiacán, San Luis Potosí, Zacatecas and Monterrey airports as primary obligors, jointly and severally, with respect to the payment of the principal and interest. The interest rate is LIBOR plus 265 basis points.

3.Basis of presentation and consolidation

a.Statement of compliance

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ~~(“IFRS”)~~(IFRS), including amendments and interpretations, as issued by the International Accounting Standards Board (IASB).

b.Consolidated statement of financial position

According to the requirements of the Mexican National Banking and Securities Commission (Comisión Nacional Bancaria y de Valores), GACN must present as part of its basic consolidated financial statements, a third statement of financial position.

c.Basis of ~~measurement~~preparation

The consolidated financial statements have been prepared on the historical cost basis; notwithstanding, fair value is disclosed in certain cases.

~~F-6~~

~~Table~~ In addition, the Company determines the fair value of ~~Contents~~certain financial instruments for disclosures purposes.

i)Historical cost

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

ii)Fair value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability, if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on such a basis, except for share-based payment transactions that are within the scope ~~of IFRS 2 (Share-Based Payment), leasing transactions that are within the scope of~~ IAS 17, (Leases), and ~~measurements~~valuations that have some similarities to fair value but are not fair value, such as ~~net realizable value in IAS 2 (Inventories) or~~the value in use in IAS 36 (Impairment of Assets).

In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

·Level 11: inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at the measurement date;

·Level 22: inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and

·Level 33: inputs are unobservable inputs for the asset or liability.

F-13

c.d.Convenience translation

Solely for convenience of readers, peso amounts included in the consolidated financial statements as of December 31, ~~2014~~2017 and for the year then ended have been translated into U.S. dollar amounts at the exchange rate of Ps. ~~14.7348~~19.7354 pesos per U.S. dollar, as published by Banco de ~~Mexico,~~México, S.A. Such translation should not be construed as a representation that the Mexican peso amounts have been, could have been or could, in the future, be converted into U.S. dollars at such rate or any other rate.

d.e.Reporting currency

The Mexican peso, legal currency of the United Mexican States is the currency in which the consolidated financial statements are presented. Transactions in currencies other than the peso are recorded in accordance with established policies described in ~~Note 4b.~~note 4 b.

e.f.Consolidated statements of income and other comprehensive income

The Company chose to present the consolidated statement of income and other comprehensive income in a single statement, as well as presenting operating income in such statement in accordance with practices in the industry. Costs and expenses were classified according to their nature.

f.g.Statement of Cash Flows

The Company presents the cash flows from operating activities using the indirect method, in

which the profit or loss is adjusted to reflect the effect of transactions that do not require cash

flow, including those associated with investment or financing activities.

h.Principles of consolidation

The consolidated financial statements incorporate the financial statements of GACN and its subsidiaries. Control is achieved when GACN or its subsidiaries:

·~~have power over the investee;~~

·

Have power over the investee;

·~~are exposed, or have rights, to variable returns from involvement with the investee; and~~

·

Are exposed, or have rights, to variable returns from involvement with the investee; and

·~~have the ability to use their power to affect their returns.~~

~~F-7~~

·

Have the ability to use their power to affect their returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including:

·

The percentage of the Company’s holding of voting rights relative to the percentage and dispersion of holdings of the other vote holders;

·~~the percentage of the Company’s holding of voting rights relative to the percentage and dispersion of holdings of the other vote holders;~~

·

Potential voting rights held by the Company, other vote holders or other parties;

·

Rights arising from other contractual arrangements; and

·~~potential voting rights held by the Company, other vote holders or other parties;~~

F-14

·~~rights arising from other contractual arrangements; and~~Table of Contents

·any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

·

Any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time that decisions need to be made, including voting patterns at previous shareholders’ meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of income and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

The income and each component of other comprehensive income are attributed to the Company’s owners and to the non-controlling interests. ~~Total comprehensive income of subsidiaries is attributed to the Company’s owners and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.~~

The non-controlling interests in equity of subsidiaries are presented separately as non-controlling interests in the consolidated statements of financial position, within the shareholders’ equity section, and the consolidated statements of income and other comprehensive income.

The financial statements of companies that are included in the consolidation are prepared as of December 31 of each year.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Note 11 sets forth the entities that are consolidated on the financial statements and the information related thereto.

4.Significant accounting policies

The consolidated financial statements are prepared in accordance with IFRS. Preparation of financial statements under IFRS requires the Company’s management to make certain estimates and use assumptions to value certain of the items in the consolidated financial statements as well as their related disclosures required therein. The areas with a high degree of judgment and complexity or areas where assumptions and estimates are significant in the consolidated financial statements are described in ~~Note~~note 5. The estimates are based on information available at the time the estimates are made, as well as the best knowledge and judgment of management based on experience and current events. However, actual results could differ from those estimates. The Company has implemented control procedures to ensure that its accounting policies are appropriate and are properly applied. Although actual results may differ from those estimates, the Company’s management believes that the estimates and assumptions used were adequate under the circumstances.

Adoption of International Financial Reporting Standards

The consolidation requirements, accounting policies and valuation methods used in preparing the consolidated financial statements as of and for the year ended December 31, ~~2014~~2017 were the same as those applied in the consolidated financial statements for ~~2013~~2016 and ~~2012,~~2015, except for the standards and interpretations described in paragraph ~~a. i)~~(a) (i) included below, which were applicable to the Company and were effective during ~~2014.~~2017.

~~F-8~~

F-15

a.Application of new and revised ~~IFRS~~

i)~~Effective January 1, 2014, the Company adopted the following standards and interpretations:~~International Financial Reporting Standards

i)

The Company adopted the following IFRS and interpretations of the consolidated financial statements that entered into effect as of the years that started on or after January 1, 2017:

·~~Amendments to IFRS 10 (Consolidated Financial Systems), IFRS 12 (Disclosure of Interests in Other Entities) and IAS 27 (Investment Entities)~~

-

Amendments to IAS 7 (Disclosure Initiative)

-

Amendments to IAS 12 (Recognition of Deferred Tax Assets for Unrealized Losses Annual)

-

Annual Improvements to IFRS 2014-2016 Cycle; IFRS 12 (Disclosure of Interests in Other Entities)

·Amendments to IAS ~~32 (Offsetting Financial Assets and Financial Liabilities)~~

·~~Amendments to IAS 36 (Recoverable Amount Disclosures for Non-Financial Assets)~~

·~~IFRIC 21 (Levies)~~

·~~Amendments to IAS 19 (Defined Benefit Plans: Employee Contributions)(1)~~

·~~Annual Improvements to the IFRS, 2010-2012 Cycle(2)~~

·~~Annual Improvements to the IFRS, 2011-2013 Cycle(1)~~

~~(1) Effective for annual periods beginning on or after July 1, 2014, with earlier application permitted.~~

~~(2) Effective for annual periods beginning on or after July 1, 2014, with limited exceptions.~~7 Disclosure Initiative

The ~~impact~~Company has applied these amendments for the first time in the current year. The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both cash and non-cash changes.

The Company’s liabilities arising from financing activities consist mainly of loans, and the changes of the opening and closing balances are described in note 15.

The application of these ~~new standards on~~amendments affected disclosures in the consolidated financial statements of the Company, isas described ~~as follows:~~in the previous paragraph.

Amendments to ~~IFRS 10 (Consolidated Financial Systems),~~IAS 12 Recognition of Deferred Tax Assets for Unrealized Losses

The Company has applied these amendments for the first time in the current year. The amendments clarify how an entity should evaluate whether there will be sufficient future taxable profits against which it can utilize a deductible temporary difference.

The application of these amendments has had no impact on the Company’s consolidated financial statements, as the Company already assesses the sufficiency of future taxable profits in a way that is consistent with these amendments.

Annual Improvements to IFRSs 2014-2016 Cycle; IFRS 12 ~~(Disclosure~~Disclosure of Interests in Other ~~Entities) and IAS 27 (Investment Entities)~~Entities

The Company has applied the amendments to IFRS ~~10, IFRS~~ 12 ~~and IAS 27~~included in the Annual Improvements to IFRSs 2014-2016 Cycle for the first time in the current year. The other amendments to included in this package are not yet mandatorily effective and they have not been adopted by the Company.

IFRS ~~10 define an investment entity and prohibit a reporting entity~~12 states that ~~meets the definition of an investment entity from consolidating its subsidiaries, but rather requires such~~ an entity ~~to instead measure its~~need not provide summarized financial information for interests in subsidiaries, ~~at fair value through profit~~associates or ~~loss~~joint ventures that are classified (or included in ~~its consolidated and separate financial statements.~~

~~To qualify~~a disposal group that is classified) as ~~an investment entity, a reporting entity~~held for sale. The amendments clarify that this is ~~required to:~~

·~~Obtain funds~~the only concession from ~~one or more investors for~~ the ~~purpose~~disclosure requirements of ~~providing them with investment management services;~~

·~~Commit to its investor(s) that its business purpose is to invest funds solely for returns from capital appreciation, investment income, or both; and~~

·~~Measure and evaluate performance of substantially all of its investments on a fair value basis.~~

~~Consequential amendments have been made to~~ IFRS 12 ~~and IAS 27 to introduce new disclosure requirements~~ for ~~investment entities.~~

As the Company is not an investment entity (assessed based on the criteria set out in IFRS 10 as of January 1, 2014), the application of the amendments has had no impact on the disclosures or the amounts recognized in the Company’s consolidated financial statements.

~~Amendments to IAS 32 (Offsetting Financial Assets and Financial Liabilities)~~

The Company has applied the amendments to IAS 32 for the first time in the current year. The amendments to IAS 32 clarify the requirements relating to the offset of financial assets and financial liabilities. Specifically, the amendments clarify the meaning of “currently has a legally enforceable right of set-off” and “simultaneous realization and settlement.”

As the Company does not have any financial assets and financial liabilities that qualify for offsetting, the application of the amendments has had no impact on the disclosures or on the amounts recognized in the Company’s consolidated financial statements.

~~F-9~~

~~Amendments to IAS 36 (Recoverable Amount Disclosures for Non-Financial Assets)~~

The Company has applied the amendments to IAS 36 for the first time in the current year. The amendments to IAS 36 remove the requirement to disclose the recoverable amount of a cash-generating unit (“CGU”) to which goodwill or other intangible assets with indefinite useful lives had been allocated when there has been no impairment or reversal of impairment of the related CGU. Furthermore, the amendments introduce additional disclosure requirements applicable to when the recoverable amount of an asset or a CGU is measured at fair value less costs of disposal.

~~These new disclosures include the fair value hierarchy, key assumptions and valuation techniques used, which are in line with the disclosure required by IFRS 13 (Fair Value Measurements).~~such interests.

The application of these amendments has had no ~~material impact on the disclosures in the Company’s consolidated financial statements.~~

~~Amendments to IAS 19 (Defined Benefit Plans: Employee Contributions)~~

The amendments to IAS 19 clarify how an entity should account for contributions made by employees or third parties to defined benefit plans, based on whether those contributions are dependent on the number of years of service provided by the employee.

For contributions that are independent of the number of years of service, the Company may either recognize the contributions as a reduction in the service cost in the period in which the related service is rendered or attribute them to the employees’ periods of service using the projected unit credit method. In contrast, the Company is required to attribute contributions that are dependent on the number of years of service to the employees’ periods of service. The Company does not manage contributions of the employees or third parties to the defined benefit plans. Therefore, the application of these amendments has had no impact on the disclosures or the amounts recognized in the consolidated financial statements.

~~Annual Improvements to the IFRS 2010-2012 Cycle~~

~~The Annual Improvements to the IFRS 2010-2012 Cycle include a number of amendments to various IFRS, which are summarized below.~~

The amendments to IFRS 8 (i) require an entity to disclose the judgments made by management in applying the aggregation criteria to operating segments, including a description of the operating segments aggregated and the economic indicators assessed in determining whether the operating segments have “similar economic characteristics” and (ii) clarify that a reconciliation of the total of the reportable segments’ assets to the Company’s assets should only be provided if the segment assets are regularly provided to the chief operating decision maker.

The amendments to IAS 16 and IAS 38 remove perceived inconsistencies in the accounting for accumulated depreciation/amortization when an item of property and equipment or an intangible asset is revalued. The amended standards clarify that the gross carrying amount is adjusted in a manner consistent with the revaluation of the carrying amount of the asset and that accumulated depreciation/amortization is the difference between the gross carrying amount and the carrying amount after taking into account accumulated impairment losses.

The amendments to IAS 24 clarify that a management entity providing key management personnel services to a reporting entity is a related party of the reporting entity. Consequently, the reporting entity should disclose as related party transactions the amounts incurred for the service paid or payable to the management entity for the provision of key management personnel services. However, disclosure of the components of such compensation is not required.

~~The application of these amendments had no significant impact~~effect on the Company’s consolidated financial ~~statements.~~statements as none of the Company’s interests in these entities are classified, or included in a disposal group that is classified, as held for sale.

~~F-10~~ii)

~~Annual Improvements to the IFRS 2011-2013 Cycle~~

The amendments to IFRS 13 clarify that the scope of the portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with, IAS 39 or IFRS 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within IAS 32.

~~The application of these amendments had no significant impact on the Company’s consolidated financial statements.~~

~~IFRIC 21 (Levies)~~

The Company has applied IFRIC 21 (Levies) for the first time in the current year. IFRIC 21 addresses the issue as to when to recognize a liability to pay a levy imposed by a government. The Interpretation defines a levy, and specifies that the obligating event that gives rise to the liability is the activity that triggers the payment of the levy, as identified by legislation. The interpretation provides guidance on how different levy arrangements should be accounted for, in particular, it clarifies that neither economic compulsion nor the going concern basis of financial statements preparation implies that an entity has a present obligation to pay a levy that will be triggered by operating in a future period.

~~The application of these amendments had no significant impact on the Company’s consolidated financial statements.~~

The Company has not applied the following new and revised IFRS, ~~that have been~~which were issued but ~~that are~~have not ~~effective until January 1, 2015 or at a later date:~~yet become effective:

-

IFRS 9 (Financial Instruments)(1)

-

IFRS 15 (Revenue from Contracts with Customers)(1)

-

IFRS 16 (Leases)(2)

·

F-16

-

Annual Improvements to IFRS Standards 2014-2016 Cycle; IFRS 1 (First-time Adoption of International Financial Reporting Standards) and IAS 28 (Investments in Associates and Joint Ventures)(1)

-

IFRIC 22 (Foreign Currency Transactions and Advance Consideration)(1)

-

IFRIC 23 (Uncertainty over income Tax Treatments)(2)

(1)

Effective for annual periods beginning on or after January 1, 2018, with earlier application permitted.

(2)

Effective for annual periods beginning on or after January1, 2019, with earlier application permitted.

IFRS 9 Financial Instruments~~(1)~~

·IFRS ~~15, Revenue from Contracts with Customers(2)~~

·~~Annual Improvements to the IFRS,~~ ~~2012-2014 Cycle~~ ~~(3)~~

·~~Amendments to IFRS 10 (Consolidated Financial Statements) and IAS 28 (Investments in Associates)(4)~~

·~~Amendments to IAS 16 and IAS 38, Clarification of Acceptable Methods of Depreciation and Amortization(4)~~

~~(1) Effective for annual periods beginning on or after January 1, 2018, with earlier application permitted.~~

~~(2) Effective for annual periods beginning on or after January 1, 2017, with earlier application permitted.~~
~~(3) Effective for annual periods beginning on or after July 1, 2016, with earlier application permitted.~~
~~(4) Effective for annual periods beginning on or after January 1, 2016, with earlier application permitted.~~

~~IFRS 9 (Financial Instruments)~~

I~~FRS~~ 9 issued in November 2009 introduced new requirements for the classification and measurement of financial assets. IFRS 9 was subsequently amended in October 2010 to include requirements for the classification and measurement of financial liabilities and for derecognition and in November 2013 to include the new ~~requirements~~requierments for general hedge accounting. Another revised version of IFRS 9 was issued in July 2014, mainly to ~~include:~~include a) impairment requirements for financial assets and b) limited amendments to the classification and measurement requirements by introducing a “fair value through other comprehensive income” ~~(“FVTOCI”)~~(FVTOCI) measurement category for certain simple debt instruments.

Key requirements of IFRS 9:

·

All recognized financial assets that are within the scope of IFRS 9 Financial Instruments·~~All recognized financial assets that are within the scope of IAS 39~~ (~~Financial Instruments: Recognition and Measurement)~~ are required to be subsequently measured at amortized cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods. Debt instruments that are held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets, and that have contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are generally measured at FVTOCI. All other debt investments and equity investments are measured at their fair value through the net profit or loss. In addition, under IFRS 9, entities may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading nor contingent consideration recognized by an acquirer in a business combination) in other comprehensive income, with only dividend income generally recognized in profit or loss.

·

With regard to the measurement of financial liabilities, IFRS 9 allows, optionally, to designate such liabilities as fair value through profit or loss, and requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to profit or loss. Under IAS 39 Financial Instruments: Recognition and Measurement, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss is presented in profit or loss.

~~F-11~~

·

In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model, as opposed to an incurred credit loss model under IAS 39. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since the beginning of the period. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognized.

·

The new general hedge accounting requirements retain the three types of hedge accounting mechanisms currently available under IAS 39. Under IFRS 9, greater flexibility has been

F-17

introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with the principle of an “economic relationship”. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s risk management activities have also been introduced.

~~cost or fair value. Specifically, debt investments that are held within a business model whose objective is to collect~~Based on an analysis of the contractual cash flows, and that have contractual cash flows that are solely payments of principal and interest on the principal outstanding are generally measured at amortized cost at the end of subsequent accounting periods. Debt instruments that are held within a business model whose objective is achieved both by collecting contractual cash flows and sellingCompany’s financial assets and liabilities as of December 31, 2017, and taking into account the facts and circumstances that ~~have contractual terms~~existed as of that ~~give rise on specified dates to cash flows that are solely payments~~date, the Company’s management evaluated the impact of the adoption of IFRS 9 in its consolidated financial statements, as described below:

Classification and measurement

·

Obligations classified as held-to-maturity investments and loans at amortized cost, as detailed in Notes 6 and 21, are kept within a business model whose objective is to collect contractual cash flows that are only principal and interest payments on the outstanding principal. Accordingly, these financial assets will continue to be measured at amortized cost with the application of IFRS 9.

·

Regarding investments in securities classified as available-for-sale investments that are valued at fair market value, the Company does not include balances for this type of transactions in its consolidated financial statements.

·

Regarding unlisted shares, which are classified as available-for-sale investments that must be valued at fair market value, the Company does not include balances for this type of transaction in its consolidated financial statements.

·

The Company does not include redeemable cumulative preferential shares in its financial statements, which are to be valued at fair market value through net profit or loss (FVTPL).

All other financial assets and financial liabilities will continue to be measured on the ~~principal amount outstanding, are measured at FVTOCI. All other debt investments~~same basis currently established by IAS 39.

Impairment of Financial Instruments

The Company expects to apply a simplified model of expected loss to recognize credit losses for its trade account receivables, as required by IFRS 9.

This model is carried out through a transition matrix, which considers the past behavior of the main customers and ~~equity investments are measured at~~ their ~~fair value at~~historical account balances to estimate the ~~end~~probability of ~~subsequent accounting periods.~~ payment and the probability of default. The model also considers financial factors in the stock market, macroeconomic factors and in-house financial information to determine the severity of the loss. Using both variables, together with the information of each customer, one can determine the expected loss as an estimate of uncollectible accounts for a specific period.

In ~~addition, under~~general, the Company’s management expects that the application of the expected loss model of IFRS 9 ~~entities may make an irrevocable election~~ to ~~present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognized in profit or loss.~~

·With regard to the measurement of financial liabilities designated as at fair value through profit or loss, IFRS 9 requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to profit or loss. Under IAS 39, the entire amount of the change in the fair value of the financial liability designated as fair value through profit or loss is presented in profit or loss.

·In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model, as opposed to an incurred credit loss model under IAS 39. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognized.

·The new general hedge accounting requirements retain the three types of hedge accounting mechanisms currently available in IAS 39. Under IFRS 9, greater flexibility has been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with the principle of an “economic relationship.” Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s risk management activities have also been introduced.

~~The Company’s management anticipates that future application of IFRS 9~~its accounts receivable from customers will not have a ~~material~~significant impact on its consolidated financial statements, due to the ~~reported amounts~~good performance of the Company’s portfolios and ~~disclosures~~the quality and levels of guarantees that support accounts receivable from customers.

Hedge accounting

As of December 31, 2017, the Company does not use hedge accounting, so this provision in ~~its~~IFRS 9 does not impact the Company’s consolidated financial statements. ~~However, it is not practicable to provide a reasonable estimate of the effect of IFRS 9 until the Company undertakes a detailed review.~~

F-18

IFRS 15 ~~(Revenue~~Revenue from Contracts with ~~Customers)~~Customers

~~In May 2014,~~ IFRS 15, was issued ~~which~~in May 2014 and applies to annual reporting periods beginning on or after January 1, 2018. IFRS 15 establishes a single comprehensive model for entities to use ~~in accounting~~to account for revenue arising from contracts with customers. IFRS 15 will supersede the current revenue recognition guidance including IAS 18 (Revenue), IAS 11 (Construction Contracts) and the related Interpretations when it becomes effective.

The core principle of IFRS 15 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the ~~Company~~entity expects to be entitled in exchange for those goods or services. Specifically, the ~~standard~~Standard introduces a ~~five-step~~5-step approach to revenue recognition:

·~~Step 1: Identify the contract(s) with a customer.~~

·

Step 1: Identify the contract(s) with a customer

~~F-12~~

·

Step 2: Identify the performance obligations in the contract

·~~Step 2: Identify the performance obligations in the contract.~~

·

Step 3: Determine the transaction price

·~~Step 3: Determine the transaction price.~~

·

Step 4: Allocate the transaction price to the performance obligations in the contract

·~~Step 4: Allocate the transaction price to the performance obligations in the contract.~~

·~~Step 5: Recognize revenue when (or as) the Company satisfies a performance obligation.~~

·

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

Under IFRS 15, an entity recognizes revenue when (or as) a performance obligation is satisfied, i.e., when ~~“control”~~‘control’ of the goods or services underlying the particular performance obligation is transferred to the customer. Far more prescriptive ~~guidance has~~guidelines have been added in IFRS 15 to deal with specific scenarios. Furthermore, extensive disclosures are required by IFRS 15.

The Company has evaluated the impact on its consolidated financial statements from the adoption of this standard as of December 31, 2017, taking into account the following steps to recognize income:

1.

Step 1 The contracts with customers meet the criteria established by IFRS 15 in order to be accounted for: they are clearly identified, they have a fixed duration and, in the case of regulated revenues, they can be modified by updating the rates in accordance with the tariff regulation system.

2.

Step 2 Management has identified different performance obligations grouped into two types of services, aeronautical and non-aeronautical, and each performance obligation identified is presented in a disaggregated form. There are activities that are strongly correlated to the presentation of some services, which are not considered a different service, and therefore, are not treated as separate performance obligations. In connection with the concession contracts, Management recognized that IFRS 15 modifies IFRIC 12 (Service Concession Agreements). Therefore, during construction activities, a cost is recognized in the income statement and as revenue as a result of such activities, thus recording an intangible asset, which was recognized as a separate performance obligation.

3.

Step 3 The Company determines the price of the transaction using the amount of consideration presented in the contracts and the rates established in the annexes for each of the performance obligations identified. The impact is not recognized since that is consistent with current requirements.

4.

Step 4 The Company allocates the transaction price to each of the performance obligations on the basis of independent sales prices; in this case, an applicable rate for each different service required in the contract. In some cases, discounts or incentives are applied directly to a performance obligation because this is established in the contract, so these variable considerations would not be applicable to all performance obligations. No impact was identified in relation to the allocation of the price to the different performance obligations, since they are recognized at their independent selling price.

F-19

5.

Step 5 The revenue is recognized when the obligation is satisfied, such that, to the extent that the service is provided, the amount of the income recognized is the amount assigned to that performance obligation. Thus, the current system for recognition is consistent with the requirements under IAS 18 Revenue and IFRIC 12 Service Concession Agreements.

Based on the facts and circumstances existing as of December 31, 2017, and in accordance with what is mentioned in the preceding paragraphs, the Company’s management anticipates that ~~future application~~the adoption of the new IFRS 15 will not have a ~~material~~significant impact on the ~~reported amounts and disclosures in its the~~Company’s consolidated financial statements.

IFRS 16 Leases

IFRS 16 introduces a comprehensive model for the identification of lease arrangements and accounting treatments for both lessors and lessees. IFRS 16 was issued in January 2016 and will supersede the current lease guidance including IAS 17 Leases and the related interpretations when it becomes effective.

IFRS 16 distinguishes leases and service contracts on the basis of whether an identified asset is controlled by a customer. “Distinctions of operating leases (off balance sheet) and finance leases (on balance sheet) are removed for lessee accounting and is replaced by a model where a right-of-use asset and a corresponding liability have to be recognized for all leases by lessees (i.e. all on balance sheet) except for short-term leases and leases of low-value assets.

The right-of-use asset is initially measured at cost and subsequently measured at cost (subject to certain exceptions) less accumulated depreciation and impairment losses, adjusted for any remeasurement of the lease liability. The lease liability is initially measured at the present value of the lease payments, as well as the impact of lease modifications, among others. Furthermore, the classification of cash flows will also be affected as operating lease payments under IAS 17 are presented as operating cash flows, whereas under the IFRS 16 model, the lease payments will be split into a principal and interest portion.

However, a lessee may elect to account for lease payments as an expense on a straight-line basis over the lease term for leases with a lease term of 12 months or less and containing no purchase options (this election is made by class of underlying asset); and leases where the underlying asset has a low value when new, such as personal computers or small items of office furniture (this election can be made on a lease-by-lease basis).

In contrast to lessee accounting, IFRS 16 substantially carries forward the lessor accounting requirements in IAS 17 and continues to require a lessor to classify a lease either as an operating lease or a finance lease.

IFRS 16 establishes different transitional provisions, including retrospective application or the modified retrospective application where the comparative period is not restated.

The Company is in the process of determining the potential impact that the adoption of this standard could have on its consolidated financial statements. Given the nature of its operations, it is not ~~practicable~~possible to provide a reasonable estimate of the effect of IFRS 1516 until the ~~Company performs a~~Company’s management concludes the detailed ~~review.~~review of the operating leases mentioned in note 18.

Annual Improvements to ~~the~~ IFRSs 2014 - 2016 Cycle;IFRS ~~2012-2014 Cycle~~1 First-time Adoption of International Financial Reporting Standards and IAS 28 Investments in Associates and Joint Ventures

The 2012-2014 cycle of annual improvements made amendments to the following standards: IFRS 5 (Long-Lived Assets Held for Sale and Discontinued Operations) including guidance on:(i) the reclassification of an asset held for sale to held for distribution or vice versa, and (ii) the discontinuation of accounting for an asset “held for distribution”; IFRS 7 (Financial Instruments: Disclosures) clarifying (i) if a contract to provide services is continuing involvement in transferred financial assets “for purposes of transfer disclosure requirements” and (ii) the application of theAnnual Improvements include amendments to IFRS 7 on disclosures of compensation to the interim condensed financial statements; IAS 19 (Employee Benefits) indicating that high-quality corporate bonds that an entity uses to estimate the discount rate for post-employment benefits must be denominated in the same currency as the benefits payable; and IAS 34 Interim Financial Reporting, clarifying the meaning of “elsewhere in the interim report” and requiring cross-references in these reports.

The Company’s management anticipates that future implementation of the annual improvements to the IFRS 2012-2014 Cycle will not have a material impact on the reported amounts and disclosures in the consolidated financial statements.

~~Amendments to IFRS 10 (Consolidated Financial Statements)~~1 and IAS 28, ~~(Investments~~which are not yet mandatorily effective for the Company. The package also includes amendments to IFRS 12, which are mandatorily

F-20

effective for the Company in ~~Associates)~~the current year.

~~Amendments~~There are two amendments to IAS 28, ~~require~~the first one clarifies that ~~gains~~the option for a venture capital organization and ~~losses resulting from transactions between an entity~~other similar entities to measure investments in associates and ~~its~~joint ventures at FVTPL is available separately for each associate or joint venture, ~~apply only to assets~~and that do not constitute a business. Also, a new requirement has been introduced for gains or losses from downstream transactions involving assets that constitute a business between an entity and its associate or joint venture are recognized in full in the financial statements of the investor. Additionally, an entity should consider whether the assets sold and contributed in separate transactions constitute a business andelection should be ~~accounted for as a single transaction.~~

~~Moreover, for consolidated financial statements, an exception was introduced in IFRS 10 so that the gain or loss resulting from the sale or contribution~~made at initial recognition of ~~a subsidiary that does not constitute a business as defined in IFRS 3 to an associate or joint venture is recognized only to the extent of unrelated investors’ interests in~~ the associate or joint venture. With respect to the option for an entity that is not an investment entity (IE) to retain the fair value measurement applied by its associates and joint ventures that are IEs when applying the equity method, the amendments make a similar clarification that this choice is available for each IE associate or IE joint venture. The amendments apply retrospectively with earlier application permitted.

~~The Company’s management anticipates that future implementation of the amendments~~Amendments to IFRS 101 and IAS 28, ~~will not have~~which clarify the option for a ~~material impact~~venture capital organization and other similar entities to measure investments in associates and joint ventures at FVTPL, are effective for annual periods beginning on ~~the reported amounts and disclosures in the consolidated financial statements.~~

~~F-13~~

~~Amendments to IAS 16 (Property, Plant and Equipment) and IAS 38 (Clarification of Acceptable Methods of Depreciation and Amortization)~~

The amendments to IAS 16 prohibit entities from using a revenue-based depreciation method for items of property, plant and equipment. The amendments to IAS 38 introduce a rebuttable presumption that revenue is not an appropriate basis for amortization of an intangible asset. This presumption can only be rebutted in the following two limited circumstances:

~~a) when the intangible asset is expressed as a measure of revenue;~~ or

~~b) when it can be demonstrated that revenue and consumption of the economic benefits of the intangible asset are highly correlated.~~

~~Currently, the Company uses the straight-line method for depreciation and amortization for its property and equipment, and intangible assets, respectively.~~ after January 1, 2018. The Company’s management ~~believes that the straight-line method is the most appropriate method to reflect the consumption of economic benefits inherent in the respective assets and accordingly,~~ does not anticipate that the application of ~~these~~the amendments in the future will have ~~a material~~any impact on the Company’s consolidated financial ~~statements.~~statements, as the Company is neither a first-time adopter of IFRS nor an investment entity. Furthermore, the Company does not have any associate or joint venture that is an investment entity.

IFRIC 22 Foreign Currency Transactions and Advance Consideration

IFRIC 22 addresses how to determine the “date of transaction” for the purpose of determining the exchange rate to use on initial recognition of an asset, expense or income, when consideration for that item has been paid or received in advance in a foreign currency that resulted in the recognition of a non-monetary asset or non-monetary liability (e.g., a non-refundable deposit or deferred revenue).

The Interpretation specifies that the date of transaction is the date on which the entity initially recognizes the non-monetary asset or non-monetary liability arising from the payment or receipt of advance consideration. If there are multiple payments or receipts in advance, the Interpretation requires an entity to determine the date of transaction for each payment or receipt of advance consideration.

The Interpretation is effective for annual periods beginning on or after January 1, 2018, with earlier application permitted. Entities can apply the Interpretation either retrospectively or prospectively. Specific transition provisions apply to prospective application.

The application of these amendments will not have an impact on the Company’s consolidated financial statements, since the Company already accounts for transactions involving the payment or receipt of advance consideration in a foreign currency in a way that is consistent with the amendments.

IFRIC 23 Uncertainty over Income Tax Treatments

This interpretation seeks to clarify the recognition and measurement criteria established in IAS 12 Income Taxes when there are uncertain tax positions. Uncertain tax positions are those tax positions where there is uncertainty about whether the competent tax authority will accept the tax positions under the current tax laws. In such cases, the entity recognizes and measures its asset or liability for current or deferred taxes applying the requirements of IAS 12, based on tax profits (losses), tax bases, unused tax losses, unused tax credits and tax rates determined by applying this interpretation.

The Company will apply IFRIC 23 for annual reporting periods beginning on or after January 1, 2019. Early application is permitted and the event must be disclosed. In its initial application, it is applied retrospectively under IAS 8 requirements, modifying comparative periods or retrospectively, with the accumulated effect of its initial application as an adjustment in the initial balance of retained earnings,

F-21

without modifying comparative periods.

The application of these amendments will not have any effect on the Company’s consolidated financial statements, this is because the Company does not have uncertainty over Income Tax Treatments that require an evaluation in accordance with this interpretation.

b.Foreign currency transactions

Foreign currency transactions are recorded at the exchange rate in effect at the date of the transaction date. Monetary assets and liabilities denominated in foreign currency are translated into Mexican pesos at the exchange rate prevailing at the end of the reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange fluctuations are recorded in profit or loss, except for exchange differences on foreign currency borrowings relating to assets under construction for future productive use, which are included in the cost of those assets when they are regarded as an adjustment to interest costs on those foreign currency borrowings.

c.Cash and cash equivalents

Cash and cash equivalents consist mainly of bank deposits in checking accounts and short-term investments, highly liquid and easily convertible into cash, maturing within three months as of their acquisition date, which are subject to immaterial value change risks. Cash is stated at nominal value and cash equivalents are measured at fair value.

d.Property, leasehold improvements and equipment, net

Expenditures for property, leasehold improvements and equipment acquired are carried at acquisition cost.

Depreciation is recognized so as to write off the cost or deemed cost of assets (other than freehold land and properties under construction). Depreciation of property, leasehold improvements and equipment is calculated using the straight-line method over the useful life of the asset, taking into consideration the related asset’s residual value. Depreciation begins in the month in which the asset is placed in service. The useful lives of assets are as follows:

		~~Useful~~
		~~lives (years)~~

~~Buildings~~		Useful
		Life (years)
Improvement in leased assets		20
Machinery and equipment		10
Furniture and office equipment		10
Transportation equipment		4
~~Computers~~Computer equipment		3.3

~~Financing costs incurred during the construction and installation of property, leasehold improvements and equipment are capitalized.~~

The depreciation of property, leasehold improvements and equipment is recorded in results. ~~Land is not depreciated.~~

~~F-14~~

Disposal of assets

The gain or loss on the sale or retirement of an item of property and equipment is calculated as the difference between the proceeds from the sale and the carrying value of the asset and is recognized in income when all risks and rewards of ownership of the asset is transferred to the buyer, which generally occurs when ownership of the asset is transferred to the buyer.

Replacements or renewals of a component of property or equipment that extend the useful life of the asset, or its economic capacity, are recognized as an increase to property and equipment, with the subsequent write-off or derecognition of the assets replaced or renewed.

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Construction in progress for leasehold improvement

Construction in progress for leasehold improvement is carried at cost less any recognized impairment loss. Cost includes professional fees and, in the case of qualifying assets, borrowing costs capitalized in accordance with the Company’s accounting policy. Such properties are transferred to the appropriate categories of property and equipment when completed and ready for intended use. The depreciation of these assets, as well as other properties, begins when the assets are ready for use.

Subsequent costs

Subsequent costs form part of the value of the asset or are recognized as a separate asset only when it is probable that such disbursement represents an increase in productivity, capacity, efficiency or an extension of the life of the asset, and the cost of the item can be determined reliably. All other expenses, including repairs and maintenance, are recognized in comprehensive income as incurred.

Assets held under finance leases are depreciated over their estimated useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained by the end of the least term, assets are depreciated over the shorter of the lease term and their useful life.

e.Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Operating leasing

As lessor

Rental income from operating leases is recognized on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized in profit using the same criteria used for the recognition of lease income.

As lessee

Any payment or collection made upon execution of an operating lease is treated as an advanced payment or collection that is recognized in results over the lease term, as the benefits of the leased asset are received or transferred.

The costs and expenses arising under operating leases are recognized in results using the ~~straight line~~straight-line method during the term of the lease. Contingent rentals arising under operating leases are recognized as an expense in the period in which they are incurred.

f.Guarantee deposits

~~Mainly attributable~~Guarantee deposits correspond to amounts received from lessees to guarantee performance under the lease. They are recorded at cost and are either returned to tenants at the end of the lease term or recognized ~~within results if utilized~~against services unpaid by ~~the Company.~~tenants.

~~In 2014,~~Additionally, certain agreements were entered into with airlines, which established escrow deposits paid by the airlines to guarantee their obligation for payment of the amounts collected from passengers for the Airport Use Fee (Tarifa de Uso de Aeropuertos or “TUA”). and other airport services. If the payment obligations are not met, the

~~F-15~~

Company may immediately exercise the guarantees and utilize the funds. The aforementioned escrow deposits are recorded at cost.

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g.Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

h.Investment in airport concessions

This item consists of the rights paid to manage, operate and, in certain cases make capital investments to 13 airports based on a concession granted by the Mexican Government through the Ministry of Communications and Transportation, and to use their facilities, for a ~~50 year~~50-year term.

Investment in concessions includes the rights to use airport facilities of airport concessions and improvements to concessioned assets and represents the amount granted by the Ministry of Communications and Transportation to each airport concessions, plus improvements made to each individual concession since the time of grant.

Under all concession arrangements, (i) the grantor controls or regulates what services the Company must provide with the infrastructure, to whom it must provide them, and at what price; and (ii) the grantor controls, through ownership, any significant residual interest in the infrastructure at the end of the term of the arrangement. Accordingly, the Company classifies the assets derived from the construction, administration and operation of the service concession arrangements either as intangible assets, financial assets (accounts receivable) or a combination of both.

The Company classifies its concessioned assets as an intangible ~~asset. Subsequent improvements are recognized at acquisition or construction cost.~~asset, including its improvements.

An intangible asset results when the operator constructs or makes improvements and is allowed to operate the infrastructure for a fixed period after construction is complete, in which the future cash flows of the operator have not been specified, because they may vary depending on the use of the asset, and are therefore considered contingent. The cost of financing incurred during the construction period is capitalized.

Investments in airport concessions are amortized on a ~~straight line~~straight-line basis over the term of the concession, which is 50 years, or from the date of capitalization of additions or improvements considering the remaining term of the concession.

Revenues and costs related to construction or improvements to intangible assets subject to the Company’s airport concession with the government are recognized as revenue based on the percentage of completion method associated with the related construction costs.

i.Impairment of tangible and intangible assets

Management periodically evaluates the impairment of long-lived assets in order to determine whether there is evidence that those assets have suffered an impairment loss. If impairment indicators exist, the recoverable amount of assets is determined, with the help of independent experts, to determine the extent of the impairment loss, if any. Management considers that GACN, together with its 13 airport subsidiaries, can be considered an “independent cash generating unit”, as all formed part of the Central-North package included in the Mexican Government’s original bidding process. In accordance with the terms established by the Mexican Government, all of the Company’s 13 airports must be in operation, regardless of their individual results and are therefore evaluated for impairment on a consolidated basis. The hotel segment is evaluated separately. Considering the foregoing, the evaluation of the existence of impairment indicators was made, a result of which the Company concluded that no impairment indicators existed with respect to the airport concessions.

~~F-16~~

Intangible assets with indefinite useful ~~lives~~life and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

F-24

Table of ~~a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or~~Contents

Recoverable amount is the higher of fair value less costs to sell and ~~value in use.~~value-in-use. In assessing ~~value in use,~~value-in-use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.

When an impairment subsequently reverses, the Company reverses a portion or all of the impairment losses recognized in prior periods. When an impairment loss is reversed, the carrying amount of the asset is increased to the revised estimated value of its recoverable amount, only to the extent that the increased carrying amount does not exceed the carrying amount that would have been calculated if no impairment loss had been initially recognized for the asset in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

The Company considers that each airport individually cannot be considered as a “cash generating unit” to determine the extent of the loss impairment, since the tender for the concession was made by the Mexican Government as a package of 13 airports. Therefore, licensees are obligated to operate them regardless of the results generated individually. Considering the above, the evaluation of a possible impairment loss is performed taking into account the net assets of the 13 airports taken as a whole, while the hotels and industrial park are evaluated individually.

j.Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets are classified into four categories, which in turn determine the form of recognition and valuation of financial assets and liabilities: “Financial assets at fair value through profit or loss”, “investments held-to-maturity”, “financial assets available-for-sale” and “loans and receivables”. The classification depends on the nature and purpose of the financial assets and is determined by the Company’s management upon initial recognition. The Company generally only has financial assets at fair value through profit or loss and loans and ~~receivables.~~receivables and other investments held to maturity.

In the consolidated statement of financial position, financial assets are classified into current and noncurrent, depending on whether their maturity is less than/equal to or greater than 12 months.

Financial assets at fair value through profit or loss

Financial assets are classified at fair value through profit or loss when the financial asset is held for trading or it is designated as fair value through ~~results.~~profit or loss. A financial asset is classified as held for trading if:

·~~It has been acquired principally for the purpose of selling it in the near term; or~~

·

It has been acquired principally for the purpose of selling it in the near term; or

·~~On initial recognition it is part~~

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·

On initial recognition, it is part of a portfolio of identified financial instruments that the Company manages together and has a recent actual pattern of short-term profit-taking; or

·~~It is a derivative (except those designated as hedging instruments or that is a financial guarantee).~~

·

It is a derivative (except those designated as hedging instruments or that is a financial guarantee).

Financial assets at fair value through profit of loss are recorded at fair value, recognizing in results any gain or loss arising from their remeasurement. The gain or loss recognized in results includes any dividend or interest earned from the financial asset and is recorded in interest expense or income in the consolidated statements of income and other comprehensive income.

~~F-17~~

Loans and accounts receivables

Loans and receivables are non-derivative financial assets that have fixed or determinable payments that are not quoted in an active market. After initial recognition, loans and receivables are measured at amortized cost using the effective interest method.

Amortized cost means the initial amount recognized for a financial asset or liability plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the amount at maturity, less any reduction (directly or through a reserve) for impairment or bad debt.

Other held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets, with fixed or determinable payments and fixed maturity dates that the Company intends and is able to retain until maturity, which is after three months from the date of acquisition. Subsequent to initial recognition, held-to-maturity investments are valued at amortized cost using the effective interest method less any impairment loss.

Impairment of financial assets

Financial assets other than financial assets at fair value through profit or loss are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

For other financial assets, objective evidence of impairment could include:

·~~Significant financial difficulty of the issuer or counterparty; or~~

·

Significant financial difficulty of the issuer or counterparty; or

·~~Breach of contract, such as a default or delinquency in interest or principal payments; or~~

·

Breach of contract, such as a default or delinquency in interest or principal payments; or

·~~It becoming probable that the borrower will enter into bankruptcy or financial reorganization; or~~

·

It becoming probable that the borrower will enter into bankruptcy or financial reorganization; or

·~~The disappearance of an active market for that financial asset because of financial difficulties.~~

·

The disappearance of an active market for that financial asset because of financial difficulties.

The carrying amount of the financial asset is reduced directly by the impairment loss, except for trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are recorded in results. Changes in the carrying amount of the allowance account are recognized in profit or loss.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously recognized

F-26

impairment loss is reversed through results to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed the amortized cost if would not have recognized the impairment.

Derecognition of financial assets

On derecognition of a financial asset in its entirety, the difference between the asset´s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in results.

Financial liabilities

Financial liabilities are classified as financial liabilities at fair value through profit or loss, or other financial liabilities based on the substance of contractual arrangements.

Financial liabilities at fair value through profit or loss

~~A financial liability~~Financial liabilities are classified at fair value through profit or loss ~~is a~~when the financial liability is (i) for the contingent consideration that ~~is classified~~would be paid by the acquirer as part of a business combination covered by IFRS 3 (Business Combinations), (ii) held for trading or (iii) designated at fair value through profit or loss.

A financial liability is classified as held for trading if:

·~~It has been acquired principally for the purpose of repurchasing it in the near term; or~~

·

It has been acquired principally for the purpose of repurchasing it in the near term; or

~~F-18~~

·

On initial recognition it is part of a portfolio of identified financial instruments that are managed together for which there is evidence of a recent pattern of making short-term profits, or

·~~On initial recognition it is part of a portfolio of identified financial instruments that are managed together for which there is evidence of a recent pattern of making short-term profits, or~~

·~~It is a derivative that accounting purposes does not comply with requirements to be designated as a hedging instrument.~~

·

It is a derivative that accounting purposes does not comply with requirements to be designated as a hedging instrument.

A financial liability other than a financial liability held for trading or a contingent transaction to be paid by owner as part of a business combination, may be designated as at fair value through profit or loss upon initial recognition if:

·~~Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or~~

·

Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or

·The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

·

The financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Company’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

·~~It forms part of a contract containing one or more embedded derivatives, and IAS 39 permits the entire combined contract (asset or liability) to be designated as at fair value through profit or loss.~~

·

It forms part of a contract containing one or more embedded derivatives, and IAS 39 permits the entire combined contract (asset or liability) to be designated as at fair value through profit or loss.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in results incorporates any interest paid on the financial liability and is included in ~~effects of valuation of financial instruments~~the interest expense in the consolidated statement of income and other comprehensive income.

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Other financial liabilities

Other financial liabilities, including loans, bond issuances and debt with lenders and trade creditors and other payables are valued initially at fair value, represented generally by the consideration transferred, net of transaction costs, and are subsequently measured at amortized cost using the effective interest method.

Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the obligations are discharged, cancelled or they expire. The difference between the carrying amount of the financial liability derecognized and the consideration paid and payable is recognized in results.

Effective interest method

The effective interest method is a method of calculating the amortized cost of a financial asset or liability and of allocating interest income or cost over the relevant period. The effective interest rate is the rate that exactly discounts future cash receivable or payable (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial instrument, or (where appropriate) a shorter period, to the carrying amount of the financial asset or liability on its initial recognition. When calculating the effective interest rate, all cash flows must be estimated (for example, prepayment, ~~call options “call”~~ and the like) except for future credit losses. The calculation must include all commissions and payments or receipts between the parties to the financial instrument, including other premiums or discounts.

Offsetting of financial assets and liabilities

Offsetting of financial assets and liabilities in the consolidated statement of financial position only occurs for accounts receivable and payable arising in transactions that contractually, or by law, have established a right of setoff and for which the Company has the intention to pay a net amount or to realize the asset and pay the liability simultaneously.

k.Risk management policy

The Company is exposed to risks that are managed through the implementation of systems and processes related to identification, measurement, limitation of concentration, and supervision. The

~~F-19~~

basic principles defined by the Company in the establishment of its risk management policy are the following:

·~~Compliance with Corporate Governance Standards.~~

·

Compliance with Corporate Governance Standards.

·Establishment, by each different business line and subsidiary, of risk management controls necessary to ensure that market transactions are conducted in accordance with the policies, rules and procedures of the Company.

·

Establishment, by each different business line and subsidiary, of risk management controls necessary to ensure that market transactions are conducted in accordance with the policies, rules and procedures of the Company.

·~~Special attention to financial risk management, basically composed by interest rate, exchange rate, liquidity and credit risks (see Note 21).~~

·

Special attention to financial risk management, basically composed by interest rate, exchange rate, liquidity and credit risks (see note 21).

Risk management in the Company is mainly preventive and oriented to medium- and long-term, risks taking into consideration the most probable scenarios of ~~evolution of~~ the variables affecting each risk.

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l.Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, when it is probable that the Company will be required to settle the obligation, and when a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties associated with the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

The main provision recognized by the Company is for major maintenance for its concessioned assets, which is classified as current or noncurrent based on the estimated time period over which it expects to settle the obligation.

Major maintenance provisions

The Company is required to perform major maintenance activities to its airports as established by the concession provided by the Mexican Government, in order to preserve the infrastructure in optimal working condition. The estimated major maintenance costs are considered in the Company’s master development program, which is reviewed and updated every five years. ~~Accordingly,~~The Company recognizes and measures the ~~Company records~~contractual obligations of major maintenance of infrastructure when accrued according to IAS 37 (Provisions, Contingent Liabilities and Contingent Assets) and IFRS Interpretation Committee 12 (Service Concession Arrangements), a ~~provision for its estimated maintenance costs,~~portion is recorded as ~~usage of concessioned assets occur each year, based~~short-term and the remainder as long-term depending on the ~~time from when the infrastructure under concession becomes available for use and through the date on~~period in which the maintenance ~~and/or repair work~~ is expected to be performed. ~~Such~~These contractual obligations to maintain and restore the infrastructure of ~~the Company’s~~ airports isare recognized as a provision in the consolidated statements of financial position ~~based on an estimate~~and in the expenses of the ~~expenditure~~current fiscal year, pursuant to estimates that ~~would be~~are required to ~~settle~~comply with the present obligation at the end of the reporting period. When the effect of the time value of money is material, the amount of the provision equals the present value of the expenditures expected to be required to settle the obligation. ~~Where discounting is used, the~~The carrying amount of the provision increases each period to reflect the passage of time and this increase is recognized as an expense. After initial recognition, provisions are reviewed at the end of each reporting period and adjusted to reflect current best estimates. Adjustments to provisions arise from three sources: (i) revisions to estimated cash flows (both in amount and timing); (ii) changes to present value due to the passage of time; and (iii) revisions of discount rates to reflect prevailing current market conditions.

In periods following the initial recognition and measurement of the maintenance provision at its present value, the provision is revised to reflect estimated cash flows being closer to the measurement date. The Company’s major maintenance provisions increase over time as it incurs its obligation to restore the infrastructure of its airports, which deteriorate based on usage. At any reporting date, the best estimate of the expenditure required to settle the obligation in the future is proportional to the usage of the Company’s airport infrastructure, for example the number of airplanes that have used its airports’ runways. The unwinding of the discount relating to the passage of time is recognized as a financing cost and the revision of estimates of the amount and timing of cash flows is a remeasurement of the provision and charged or credited as an operating item within the consolidated statements of income and other comprehensive income.

~~F-20~~m.

Table of shares account, based on the cost of reacquisition and replacement of such shares. Any gain or loss generated on the purchase or sale of the Company’s shares is recorded within the reserve account. Gains or losses arising from the purchase, sale, issue or cancellation of the Company’s equity instruments are not recognized in results.Contents

m.Reserve for repurchase of shares

The Company records a reserve for the repurchase of shares from amounts appropriated from retained earnings, to strengthen the supply and demand of its shares in the stock market, as permitted by Mexican Securities Law. The ~~shareholders authorize~~shareholders’ meeting authorizes the maximum disbursement for the repurchase of ~~shares.~~shares to be used for this activity in each period between said meeting and the following, in which the application of results is approved and made.

~~Purchases and sales~~At the time of a purchase, shares are converted into treasury shares ~~are recorded decreasing or increasing~~and become part of the shareholders’ equity at the purchase price; one part of the ~~Company through common~~capital stock to the historical value, and ~~through~~the remainder to the reserve ~~for the~~to repurchase shares.

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n.Income taxes

Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax is determined based on taxable profit, which differs from profit as reported in the consolidated statement of income and other comprehensive income because of items of income or expense that are taxable or deductible in periods different from when they are recognized in accounting profit. ~~Through December 31, 2013, the Business Flat Tax (~~~~Impuesto Empresarial a la Tasa Única~~ or “IETU”) was effective, which was calculated based on cash flows, considering revenues generated less authorized deductions. Through December 31, 2013, income tax was the greater of the regular income tax (~~Impuesto Sobre la Renta~~ or “ISR”) and IETU. As a consequence of the 2014 Fiscal Reform, the IETU law was eliminated and as a consequence, all deferred IETU amounts recorded in the Company’s financial statements were eliminated.

Deferred income taxes are recognized for the applicable temporary differences resulting from comparing the accounting and tax values of assets and liabilities plus any future benefits from tax loss ~~carryforwards.~~carry-forwards. Except as mentioned in the following paragraph, deferred tax liabilities are recognized for all taxable temporary differences and deferred tax assets are recognized for all deductible temporary differences and the expected benefit of tax losses. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries, except where the Company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. The Company determined recoverability of its deferred tax assets for each subsidiary based on its projections of future taxable income, which include the master development program and the maximum rates for the period ~~2011-2015~~2016-2020 approved by the Ministry of Communications and Transportation.

Current and deferred income taxes are recognized as income or expense in profit or net loss, except when they relate to items recognized outside of profit or loss, as in the case of items of other comprehensive income, or other shareholders’ equity items, in which case the tax is recognized in other comprehensive income as part of the equity item involved.

Assets and deferred tax liabilities are offset when a legal right to offset assets with liabilities exists and when they relate to income taxes relating to the same tax authorities and the Company intends to liquidate its assets and liabilities on a net basis.

~~F-21~~o.Employee benefits

Short-term employee benefits

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Certain subsidiaries are subject to payment of statutory employee profit sharing, which is determined based on the Income Tax Law, and is recorded in the results of the year in which it is incurred and

F-30

presented under cost and administrative expenses in the consolidated statements of income and other comprehensive income.

o.Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

Benefits from retirement and termination ~~and statutory employee profit sharing~~

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

For defined benefit retirement benefit plans, the cost of providing benefits is determined using the projected unit credit method, with actuarial valuations being carried out at the end of each annual reporting period. Remeasurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected immediately in the ~~statement of~~consolidated financial ~~position~~statements with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income may be reclassified directly to retained earnings but will not be reclassified to profit or loss. Past service cost is recognized in profit or loss in the period of a plan amendment. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows:

·~~Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements)~~

a.

Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements)

·~~Net interest expense or income~~

b.

Net interest expense or income

·~~Remeasurement~~

c.

Remeasurement

The Company presents the first two components of defined benefit costs in the consolidated statements of income and other comprehensive income in the line items cost of services and administrative expenses. Curtailment gains and losses are accounted for as past service costs.

The retirement benefit obligation recognized in the consolidated statement of financial position represents the actual deficit or surplus in the Company’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

A liability for a termination ~~benefit~~benefits is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognizes any related restructuring costs.

~~Short-term employee benefits~~

A liability is recognized for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

Certain subsidiaries are subject to payment of statutory employee profit sharing, which is determined based on the Income Tax Law, and is recorded in the results of the year in which it is incurred and presented under cost and administrative expenses in the consolidated statements of income and other comprehensive income.

p.Revenue recognition

Revenues are recognized when it is likely that the Company will receive the economic benefits associated with the transaction. Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of activities. Revenue is reduced for discounts and incentives provided to customers as well as other similar allowances.

Revenues are mainly generated from the delivery of aeronautical and non-aeronautical services.

F-31

Table of Contents

Aeronautical services

Consist mainly of revenues generated from activities related to services provided to airlines and passengers. These revenues are subject to a system of prices regulated by the Ministry of Communications and Transportation, which establishes a maximum rate for such aeronautical and complementary services provided at each airport. Such revenues are recognized when the related services are rendered.

~~F-22~~

With the objective of increasing demand for aeronautical traffic at its airports, the Company implemented an incentive program to its airline customers linked to an increase in airline traffic and the opening of new routes, which is subject to certain restrictions. These incentives are recorded as a reduction of revenues over the period they are provided to clients (see ~~Note~~note 27).

Non-aeronautical services

Consist mainly of the leasing of commercial spaces in airport terminals (different from spaces occupied by airlines that are essential for their operation), revenues from the operation of parking lots, advertising, fees from access to third parties that provide catering services and other services at airports. Spaces in the airport terminals are rented through operating lease agreements that contain either fixed monthly rent (increased annually based on the National Consumer Price Index (“NCPI”)) or fees based on a minimum monthly fee or a percentage of the monthly income of the lessee, whichever is ~~higher.~~higher (contingent rent). The fixed portion of lease revenues is recognized when the services are rendered or based on the terms of the related lease.

Contingent rentals received from the percentage of monthly sales from the Company’s leases are recognized in income once the contingency is met. Therefore, during the year, the percentage of lessee monthly revenues is recognized in the following month, once the Company has received information related to its tenants’ revenues. Though each year reported includes twelve months of revenues, this accounting treatment results in a one-month lag with respect to the commercial revenues for those tenants whose stated percentage of monthly income is greater than the minimum monthly fee. However, the Company monitors the effect of this one-month lag at each reporting date and does not believe such effect to be material to its reported results.

Leasing revenues

The Company’s policy for recognition of revenue from operating leases is described in subparagraph e) of this note (the Company as lessor).

Hotel services revenues

Revenues are recognized when the services are rendered.

Construction services and costs of improvements to concessioned assets

Under ~~IFRS Interpretations Committee (“IFRIC”) Interpretation~~IFRIC 12 ~~(IFRIC 12),~~ (Service Concession Arrangements), the Company recognizes revenues and costs for improvements to the airport concession according to the percentage of completion method derived from the improvements made to the airports and that are included in the master development program. Construction service revenues related to the airport concession are determined based on the exchange between the Company and the government, as the Company constructs or improves the airports based on the master development program, and the government grants the Company the right to obtain revenues from the airport services rendered in return for those construction services. The cost for construction services is determined according to the cost the Company would incur in the construction or improvements based on the investments included in the master development program, for which, through a tender offer, the Company contracts third parties to perform. The revenue amount and cost

F-32

are equivalent, because the Company does not obtain any profit margin for the construction, and the costs incurred are paid at market prices.

q.Basic and diluted earnings per share

Basic earnings per share are computed by dividing net income of the controlling interest by the weighted average number of common shares outstanding during the year. The Company does not have potentially dilutive shares.

5.Critical accounting judgments and key sources of estimation uncertainty

In applying the Company’s accounting policies, described in ~~Note~~note 4, the Company’s management makes judgments, estimates and assumptions about the carrying amounts of assets and liabilities in the consolidated financial statements. The estimates and underlying assumptions are based on historical experience and other factors considered relevant. Actual results may differ from these estimates.

Estimates and assumptions are reviewed on an ongoing basis. Adjustments to accounting estimates are recognized in the period in which the adjustment is made and future periods if the change affects both the current period and to subsequent periods.

~~F-23~~

a.Critical accounting judgments

Critical judgments, other than those involving estimations (see paragraph b), made by management throughout the process of applying the Company’s accounting policies ~~and~~ that have a material effect on the consolidated financial statements, are presented below.

·As of December 31, 2012, in order to assess and determine deferred taxes, the Company created projections involving future taxable income for the period during which the deferred taxes would reverse to establish whether to expect to pay IETU or ISR during those years. The Company identified the subsidiaries subject to ISR and those subject to IETU. As of December 31, 2013, IETU was eliminated by the repeal of the IETU law; therefore, deferred income tax is recognized based only on ISR.

·

Evaluation of the existence of control on investments in subsidiaries (see note 11).

·~~Evaluation of the existence of control on investments in subsidiaries (see Note 11).~~

·

Defined benefit obligations to the Company’s employees are discounted at a rate set by reference to market rates at the end of the reference period of Mexican government bonds.

·Defined benefit obligations to the Company’s employees are discounted at a rate set by reference to market rates at the end of the reference period of Mexican government bonds. An assessment is required to establish the criteria for the bonds to be included in the population from which the yield curve is derived.

·The Company is subject to transactions or contingent events over which it applies professional judgment to determine the probability of occurrence. Factors considered in this determination are the legal situation as of the date on which the estimation is made and the opinion of legal advisors.

·

The Company is subject to transactions or contingent events over which it applies professional judgment to determine the probability of occurrence. Factors considered in this determination are the legal situation as of the date on which the estimation is made and the opinion of legal advisors.

b.Key sources of estimation uncertainty

Basic assumptions concerning the future and other key sources of uncertainty in the estimates made at the end of the reporting period, that have a significant risk of causing significant adjustments to the carrying amounts of assets and liabilities within the following financial year are as follows:

·To determine the estimation of doubtful accounts, the Company determines, among others, customer credit risk arising from its financial position and considerable delays in collections according to the terms agreed upon with customers. (See Note 7).

·

To determine the estimation of doubtful accounts, the Company determines, among others, customer credit risk arising from its financial position and considerable delays in collections according to the terms agreed upon with customers (see note 7).

·

The Company’s long-lived assets correspond to concessions granted by the Mexican Government and properties, leasehold improvements and equipment. The Company reviews the carrying amounts of its long-lived assets to determine whether there are indications of impairment. In the Company’s analysis of impairment indicators, the Company identified indicators of a potential impairment in the Terminal 2 NH Hotel investment. After the analysis, the Company determined that the Terminal 2 NH Hotel was not impaired and therefore did not record any impairment loss during the period. The value in use calculation requires the Company to determine the future cash flows deemed to arise from the cash generating unit (“CGU”) and an appropriate discount rate to

·The Company’s long-lived assets correspond to concessions granted by the Mexican Government and properties, leasehold improvements and equipment. The Company reviews the carrying amounts of its long-lived assets to determine whether there are indications of impairment. In its analysis of impairment indicators, the Company identified indicators of a potential impairment in the Terminal 2 NH Hotel investment. After the analysis, the Company determined that the Terminal 2 NH Hotel was not impaired and therefore did not record any impairment loss during the period (see Note 9).

F-33

·The Company’s management reviews the estimated useful lives and residual values of property, leasehold improvements and equipment at the end of each annual period. Based on detailed analyses, the Company’s management could modify the useful life of certain assets of property, leasehold improvements and equipment. The degree of uncertainty associated with estimates of useful lives is related to market changes, use of assets and technological development.

·~~Valuations for determining the recoverability of deferred tax assets and asset tax (~~~~Impuesto al Activo~~~~, or “IMPAC”) recoverable.~~

·The Company’s management determines and recognizes, based on estimates, the major maintenance provision as per concession contracts with the Mexican Government to maintain and restore the airports’ infrastructure, which affects the results of periods ranging from the moment concession infrastructure becomes available for use through the date on which the maintenance and/or repair works are performed. The Company also calculates the appropriate discount rate for determining the present value of expected expenses that are required to meet its obligations.

~~F-24~~

calculate the present value. The net book value of the investment in the Terminal 2 NH Hotel as of December 31, 2017 was Ps. 277,344; this does not reflect any impairment loss (see note 9).

·

The Company’s management reviews the estimated useful lives of property, leasehold improvements and equipment at the end of each annual period. Based on detailed analyses, the Company’s management could modify the useful life of certain assets of property, leasehold improvements and equipment. The degree of uncertainty associated with estimates of useful lives is related to market changes, use of assets and technological development.

·

Determining the recoverability of deferred tax assets and asset tax (Tax on Assets, or “IMPAC”) recoverable.

·

The Company’s management determines and recognizes, based on estimates, the major maintenance provision as per concession contracts with the Mexican Government to maintain and restore the airports’ infrastructure, which affects the results of periods ranging from the moment concession infrastructure becomes available for use through the date on which the maintenance and/or repair works are performed. The Company also calculates the appropriate discount rate for determining the present value of expected expenses that are required to meet its obligations.

Although these estimates were made based on the best information available as of December 31, ~~2014,~~2017, 2016 and 2015 it is possible that events may take place in the future that will require the Company to modify (increase or decrease) the amounts in the coming years, which in such case would be applicable on a prospective basis by recognizing the effects of changes in estimates in the corresponding consolidated financial statements.

6.Cash and cash equivalents

Cash and cash equivalents are composed as follows:


	December 31,				December 31,
	2014		2013		2017		2016		2015

Cash	Ps.	149,431	Ps.	88,606	Ps.	602,074	Ps.	1,052,860	Ps.	86,388
Cash equivalents:
Bank notes	1,470,812		1,043,953			1,269,090		932,638		1,574,653
Commercial paper	704,648		315,695			139,870		124,361		349,297
Money market investment funds	483,258		85,752			321,973		895,933		594,858
					Ps.	2,333,007	Ps.	3,005,792	Ps.	2,605,196
	Ps.	2,808,149	Ps.	1,534,006

7.~~Accounts receivable~~

7. Accounts receivable

a.The balance of accounts receivable is as follows:

	December 31,
	2014			2013			December 31,
							2017		2016		2015
Receivables	Ps.	504,469		Ps.	489,921		Ps.	668,980	Ps.	781,612	Ps.	458,518
Allowance for doubtful accounts	(184,579		)	(185,152		)
Allowance for doubtful accounts (note 7 b.)								(38,223)		(67,482)		(67,733)
							Ps.	630,757	Ps.	714,130	Ps.	390,785
	Ps.	319,890		Ps.	304,769

~~Accounts receivable disclosed are measured at amortized cost.~~

Accounts receivable represent principally the passenger charges ~~(TUA)~~(TUA) paid by each passenger (other than diplomats, infants, and transit passengers) using the airports operated by the Company. These are collected by airlines and subsequently paid to the Company. As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, amounts receivable for passenger charges amounted to Ps. ~~314,521~~486,650, Ps. 567,818 and Ps. ~~356,093,~~309,711, respectively.

F-34

The Company’s management considers that the carrying amount of accounts receivable ~~reflects~~approximates its fair ~~value.~~value given their short-term nature. No interest income is generated by any short-term account receivable. As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, the balance of the allowance for doubtful accounts was ~~Ps. 184,579~~Ps.38,223, Ps.67,482 and ~~Ps. 185,152,~~Ps.67,733 respectively, determined based on the default history and current financial situation of the ~~counterparties, of which approximately Ps. 145,845 related to Grupo Mexicana de Aviación (see Note 21d).~~Company’s customers.

The following tables set forth a percentage of the principal customers that compose the accounts receivable (before allowance for doubtful accounts) as well as the revenues generated from the Company’s principal customers, which may represent a potential credit risk for the Company if the counterparty had financial and operating difficulties that would prevent them from being able to settle amounts due to the Company.


	December 31,
	2017	2016	2015
	%	%	%
Accounts receivable:
Aeroenlaces Nacionales, S. A. de C. V.	20.40	19.25	16.99
Concesionaria Vuela Compañía de Aviacion, S.A.P.I. de C.V.	18.14	18.42	4.80
ABC Aerolíneas, S. A. de C. V.	1.08	8.41	5.90
Aerolitoral, S. A. de C. V.	24.21	17.68	21.04
Compañía Mexicana de Aviación, S. A. de C. V., Aerovias Caribe, S. A. de C. V. y Mexicana Inter, S. A. de C. V.(1)	-	0.60	2.97
Aerovías de México, S. A. de C.V.	6.01	6.27	8.20

(1)

As of December 31, 2017, the balances of these customers were applied against the allowance for doubtful accounts. The balances owed from these clients were canceled against the allowance for doubtful accounts. As of December 31, 2016 and 2015, the balances owed from this client were fully reserved, in amounts of Ps. 13,611 in both years.


	Year ended December 31,
	2017	2016	2015
	%	%	%
Revenues by client:
Aerolitoral, S. A. de C. V.	14.17	14.33	15.59
Aeroenlaces Nacionales, S. A. de C. V.	15.19	13.72	12.54
ABC Aerolíneas, S. A. de C. V.	11.06	11.93	13.45
Concesionaria Vuela Compañía de Aviación, S. A. P. I. de C. V.	12.74	13.43	9.35
Aerovías de México, S. A. de C. V.	4.85	5.08	5.98

The management of accounts receivable and the determination of the need for an allowance for doubtful accounts are carried out by each individual entity that forms part of the consolidated financial statements, as each entity has more thorough knowledge of the financial situation and relationship with each of its customers. However, in each of the Company’s lines of business, certain guidelines exist regarding specific characteristics that each customer possesses depending on the nature of the line of business.

b. The changes in the allowance for doubtful accounts are as follows:


	December 31,
	2017		2016		2015

Beginning balance	Ps.	67,482	Ps.	67,733	Ps.	184,579
(Decrease) increase		(10,561)		749		(1,103)
Write-off		(18,698)		(1,000)		(115,743)
Ending balance	Ps.	38,223	Ps.	67,482	Ps.	67,733

F-35

Accounts receivable to customers include amounts that are past due at the end of the reporting period (see analysis below for aging), but for which the Company has not recognized any allowance for doubtful accounts since there has been no significant change in credit quality and the amounts are still considered recoverable. The cancellation of doubtful accounts is executed once the Company has exhausted all means for collection of the account. ~~Usually,~~Generally, the cancellation is ~~executed~~recognized when a judge determines the unlikelihood of payment.

~~The following tables set forth a percentage of the principal customers that compose the accounts receivable (before allowance for doubtful accounts) as well as the revenues generated from the~~

~~F-25~~

Company’s principal customers, which may represent a potential credit risk for the Company if the counterparty had financial and operating difficulties that would prevent them from being able to settle amounts due to the Company.

December 31,

2014

2013

Accounts receivable:

%

%

Aeroenlaces Nacionales, S. A. de C. V.

15.02

9.94

ABC Aerolíneas, S. A. de C. V.

9.97

1.51

Aerolitoral, S. A. de C. V.

7.80

16.44

Compañía Mexicana de Aviación, S. A. de C. V., Aerovías Caribe, S. A. de C. V. y Mexicana Inter, S. A. de C. V.(1)

28.86

29.80

Aerovías de México, S. A. de C.V.

3.01

9.74

~~(1) As of December 31, 2014 and 2013, the balance owed from this client was fully reserved, in an amount of Ps.145,845.~~

Year ended December 31,

2014

2013

2012

Revenues by client:

%

%

%

Aerolitoral, S. A. de C. V.

14.62

15.05

14.70

Concesionaria Vuela Compañía de Aviación, S. A. P. I. de C. V.

8.48

6.47

6.02

Aerovías de México, S. A. de C. V.

6.17

9.66

9.45

Aeroenlaces Nacionales, S. A. de C. V.

14.47

13.40

13.59

ABC Aerolíneas, S. A. de C. V.

13.50

12.31

12.43

b.~~The changes in the allowance for doubtful accounts are as follows:~~

December 31,

2014

2013

2012

Beginning balance

Ps.
185,152

Ps.
190,004

Ps.
227,216

Net increase (decrease)

1,296

(3,727
)

(6,689
)

Write-off

(1,869
)

(1,125
)

(30,523
)

Ending balance

Ps.
184,579

Ps.
185,152

Ps.
190,004

c.Aging of trade accounts receivable past due but not ~~reserved:~~reserved


					December 31,
	December 31,				2017		2016		2015
Due:	2014		2013
1-120 days	Ps.	30,488	Ps.	34,844	Ps.	41,294	Ps.	104,318	Ps.	39,969
121-360 days	15,991		14,572

121- 360 days						14,448		34,821		14,301
Total	Ps.	46,479	Ps.	49,416	Ps.	55,742	Ps.	139,139	Ps.	54,270

8.Other accounts receivable and prepaid expenses

Other accounts receivable and prepaid expenses are comprised as follows:


					December 31,
	December 31,				2017		2016		2015
	2014		2013
Prepaid expenses	Ps.	83,675	Ps.	51,151	Ps.	23,310	Ps.	14,316	Ps.	18,529
Insurance recovery	-		31,932
Guarantee deposits	6,456		6,472			5,800		5,844		6,512
Others	8,262		5,208			9,746		8,745		4,983
					Ps.	38,856	Ps.	28,905	Ps.	30,024
	Ps.	98,393	Ps.	94,763

~~F-26~~9.

9.Property, leasehold improvements and equipment

Property, leasehold improvements and equipment are as follows:


					December 31,
	December 31,				2017		2016		2015
Net carrying value:	2014		2013
Land (Note 10)	Ps.	1,715,636	Ps.	1,715,636
Land (note 10)					Ps.	1,709,508	Ps.	1,707,236	Ps.	1,715,636
Leasehold improvements	255,239		261,469			660,589		456,505		424,511
Machinery and equipment						116,117		130,349		146,626
Furniture and office equipment	149,717		82,208			47,113		50,835		61,200
Machinery and equipment	62,563		63,310
Transportation equipment	12,489		14,331			36,246		9,042		8,548
Computer equipment	9,999		10,067			9,483		12,020		14,454
Construction in progress for leasehold improvements	78,671		18,745			22,341		78,218		—
					Ps.	2,601,397	Ps.	2,444,205	Ps.	2,370,975
	Ps.	2,284,314	Ps.	2,165,766

Cost

Land

Leasehold
improvements

Machinery and
equipment

Furniture and
office equipment

Transportation
equipment

Computer
equipment

Construction in-
progress of
leasehold
improvements

Total

Balances as of January 1, 2013

Ps.
1,747,416

Ps.
324,414

Ps.
46,627

Ps.
119,017

Ps.
20,542

Ps.
42,694

Ps.
-

Ps.
2,300,710

Acquisitions

-

3,551

44,879

15,113

4,455

5,040

18,745

91,783

Disposals

(31,780
)
-

-

-

(732
)
(326
)
-

(32,838
)
Others

-

-

(569
)
(8,365
)
-

(2,291
)
-

(11,225
)

Balance as of December 31, 2013

1,715,636

327,965

90,937

125,765

24,265

45,117

18,745

2,348,430

Acquisitions

-

-

37,557

11,785

4,186

5,765

70,354

129,647

Disposals

-

-

-

(408
)
(40
)
-

(448
)
Transfers

10,428

51,203

-

-

-

(10,428
)
51,203

Others

-

-

(3,793
)
-

(361
)
-

(4,154
)

Balance as of December 31, 2014

Ps.
1,715,636

Ps.
338,393

Ps.
179,697

Ps.
133,757

Ps.
28,043

Ps.
50,481

Ps.
78,671

Ps.
2,524,678

Accumulated
depreciation

Land

Leasehold
improvements

Machinery and
equipment

Furniture and
office equipment

Transportation
equipment

Computer
equipment

Construction in-
progress of
leasehold
improvements

Total

Balance as of January 1, 2013

Ps.
-

Ps.
(50,216
)
Ps.
(3,817
)
Ps.
(59,433
)
Ps.
(5,451
)
Ps.
(31,466
)
Ps.
-

Ps.
(150,383
)
Disposals

-

-

-

-

500

293

-

793

Depreciation expense

-

(16,280
)
(4,912
)
(10,768
)
(4,983
)
(6,165
)
-

(43,108
)
Others

-

-

-

7,746

-

2,288

-

10,034

Balance as of December 31, 2013

-

(66,496
)
(8,729
)
(62,455
)
(9,934
)
(35,050
)
-

(182,664
)

Disposals

-

-

-

-

359

39

-

398

Depreciation expense

-

(16,658
)
(21,171
)
(12,102
)
(5,715
)
(5,825
)
-

(61,471
)
Others

-

-

(80
)
3,363

(264
)
354

-

3,373

Balance as of December 31, 2014

Ps.
-

Ps.
(83,154
)
Ps.
(29,980
)
Ps.
(71,194
)
Ps.
(15,554
)
Ps.
(40,482
)
Ps.
-

Ps.
(240,364
)

F-36


													Construction
					Machinery		Furniture						in progress of
			Leasehold		and		and office		Transportation		Computer		leasehold
Cost	Land		improvements		equipment		equipment		equipment		equipment		improvements		Total

Balance as of January 1, 2015	Ps.	1,715,636	Ps.	338,393	Ps.	179,697	Ps.	133,757	Ps.	28,043	Ps.	50,481	Ps.	78,671	Ps.	2,524,678
Acquisitions		—		—		14,941		11,407		2,102		10,878		109,329		148,657
Disposals		—		—		—		—		(1,024)		—		—		(1,024)
Transfers		—		188,000		—		—		—		—		(188,000)		—
Other		—		—		—		(181)		—		(1,172)		—		(1,353)

Balance as of December 31, 2015		1,715,636		526,393		194,638		144,983		29,121		60,187		—		2,670,958
Acquisitions		—		12,963		2,223		2,787		6,227		4,040		124,878		153,118
Disposals		(8,400)		—		—		(625)		(3,030)		(31)		—		(12,086)
Transfers		—		46,660		—		—		—		—		(46,660)		—
Other		—		—		—		—		—		—		—		—

Balance as of December 31, 2016		1,707,236		586,016		196,861		147,145		32,318		64,196		78,218		2,811,990
Acquisitions		2,272		107,735		4,502		6,393		34,531		3,805		75,853		235,091
Disposals		—		—		(249)		—		(4,532)		(62)		—		(4,843)
Transfers		—		131,730		—		—		—		—		(131,730)		—
Other		—		—		—		(183)		(1,274)		(242)		—		(1,699)
Balance as of December 31, 2017	Ps.	1,709,508	Ps.	825,481	Ps.	201,114	Ps.	153,355	Ps.	61,043	Ps.	67,697	Ps.	22,341	Ps.	3,040,539


											Construction in
					Furniture and						progress of
Accumulated	Leasehold		Machinery and		office		Transportation		Computer		leasehold
depreciation	improvements		equipment		equipment		equipment		equipment		improvements		Total

Balance as of January 1, 2015	Ps.	(83,154)	Ps.	(29,980)	Ps.	(71,194)	Ps.	(15,554)	Ps.	(40,482)	Ps.	—	Ps.	(240,364)
Disposals		—		—		—		890		—		—		890
Depreciation		(18,728)		(18,032)		(12,768)		(5,909)		(6,428)		—		(61,865)
Other		—		—		179		—		1,177		—		1,356

Balance as of December 31, 2015		(101,882)		(48,012)		(83,783)		(20,573)		(45,733)		—		(299,983)
Disposals		—		—		—		3,007		31				3,038
Depreciation		(27,629)		(18,500)		(12,527)		(5,710)		(6,474)		—		(70,840)
Other		—		—		—		—		—		—		—

Balance as of December 31, 2016		(129,511)		(66,512)		(96,310)		(23,276)		(52,176)		—		(367,785)

Disposals		—		—		—		4,532		47		—		4,579
Depreciation		(35,342)		(18,674)		(10,112)		(7,264)		(6,323)		—		(77,715)
Other		(39)		189		180		1,211		238		—		1,779

Balance as of December 31, 2017	Ps.	(164,892)	Ps.	(84,997)	Ps.	(106,242)	Ps.	(24,797)	Ps.	(58,214)	Ps.	—	Ps.	(439,142)

Operation of the Terminal 2 NH Hotel: The recoverable amount of the CGU is determined by calculating its value in use, which requires cash flow projections based on financial budgets approved by the Company’s management for the remainder of the lease period. During the projection period, ~~within which, for a period~~the Company’s management projects an occupancy level of ~~six years, occupancy levels are projected as 81%,~~88% in 2018 and, according to current trends in occupancy ~~levels. Then,~~levels, 82% for the subsequent four-year period (2019-2022). For the years ~~2021~~2023 and ~~2022,~~2024, the ~~consideration of a~~ potential stoppage inof operations of the Mexico City airport ~~results in an estimated~~leads to a decrease inof projected occupancy levels to ~~52%.~~53% and 63%, respectively. For the remaining periods, starting in 2025, the Company’s management extrapolated cash flows using aan occupancy rate comparable to that of its competitors in the market with similar levels of infrastructure and expertise, which was ~~64%~~71%. Management ~~estimates~~considers that a reduction in the occupancy rate from ~~81%~~82% to ~~64%~~71%, the growth levels in revenues based on expected inflation in Mexico and the use of a discount rate before taxes of ~~15.05%~~24.53% would not significantly affect the value in use, such that it would continue to exceed the carrying amount of the CGU as of December 31, ~~2014.~~2017. Management ~~believes~~does not believe that ~~any reasonably possible~~a reasonable change in

~~F-27~~

the key assumptions ~~in which recoverable amount is based~~of its projections, such as the occupancy rate, average rate, and/or discount rate, would ~~not~~ cause the carrying value of the investment in Terminal 2 NH Hotel to exceed its recoverable amount.

10.Investment in airport concessions

The Company has concessions to operate, maintain and develop 13 airports in Mexico, which are concentrated in central and northern regions of the country. Each concession is for 50 years from November 1, 1998. The term of each of the Company’s concessions may be extended by the Ministry of Communications and

F-37

Transportation under certain circumstances for a period not exceeding 50 years. As operators of 13 airports the Company earns ~~revenues~~revenue from airlines, passengers, and other users for using the airport facilities. The Company also earns revenues for commercial activities carried out at the airports, such as leasing of space to restaurants and other shops.

Each airport concession agreement contains the following terms and basic conditions:

a.The concessionaire has the right to manage, operate, maintain and use the airport facilities and carry out any construction, improvements or maintenance of the related facilities in accordance with its five year period master development program, and to provide airport, complementary and commercial services.

a.

The concessionaire has the right to manage, operate, maintain and use the airport facilities and carry out any construction, improvements or maintenance of the related facilities in accordance with its five-year period master development program, and to provide airport, complementary and commercial services.

b.The concessionaire will use the airport facilities only for the purposes specified in the concession agreement, will provide services in conformity with the law and applicable regulations and will be subject to inspections by the Ministry of Communications and Transportation.

b.

The concessionaire will use the airport facilities only for the purposes specified in the concession agreement, will provide services in conformity with the law and applicable regulations and will be subject to inspections by the Ministry of Communications and Transportation.

c.The concessionaire must pay a concession tax for the right to use airport facilities (currently 5% of the concessionaire’s annual gross revenues derived from the use of public property), in conformity with the Mexican Federal Duties Law.

c.

The concessionaire must pay a concession tax for the right to use airport facilities (currently 5% of the concessionaire’s annual gross revenues derived from the use of public property), in conformity with the Mexican Federal Duties Law.

d.

The Mexican Airport and Auxiliary Services agency (Aeropuertos y Servicios Auxiliares)d.~~The Mexican Airport and Auxiliary Services agency (~~~~Aeropuertos y Servicios Auxiliares~~) has the exclusive right to supply fuel at the concessionaire’s airports.

e.~~The concessionaire must grant free access to specific airport areas to certain Mexican government agencies, so that they may carry out their activities within the airports.~~

e.

The concessionaire must grant free access to specific airport areas to certain Mexican government agencies, so that they may carry out their activities within the airports.

f.The concession may be revoked if the concessionaire breaches any of its obligations established in the concession title, as established in Article 26 and 27 of the Airports Law and in the concession title. The breach of certain concession terms may be cause for revocation if the Ministry of Communications and Transportation has applied sanctions in three different instances with respect to the same concession term.

f.

The concession may be revoked if the concessionaire breaches any of its obligations established in the concession title, as established in Article 26 and 27 of the General Airports Law and in the concession title. The breach of certain concession terms may be cause for revocation if the Ministry of Communications and Transportation has applied sanctions in three different instances with respect to the same concession term.

The terms and conditions of each concession contract have been ~~met~~fulfilled in all ~~material respects~~important aspects during the years ended December 31, ~~2014~~2017, 2016 and ~~2013.~~2015.

~~Investment~~Investments in airport concessions include: improvements into concessioned assets, rights to use airport facilities, and airport concessions. The total cost of the concession was assigned proportionally to rights to use airport facilities on the basis of the fair value of the assets determined by an independent appraiser. At any airport concession where the cost exceeded the fair value, the excess was recognized within the airport concessions line item.

As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, the carrying value of the ~~rights~~right to use airport facilities, airport concessions and ~~improvements~~improvement to concessioned assets ~~(investments in airport concessions)~~ classified as intangible assets are as follows:


	December 31,						December 31,
	2014			2013			2017		2016		2015
Projects completed and in operation:
Airport concessions	Ps.	605,643		Ps.	605,643		Ps.	605,643	Ps.	605,643	Ps.	605,643
Rights to use airport facilities	3,356,762			3,356,761				3,356,762		3,356,762		3,356,762
Improvements in concessioned assets (see Note 51)	3,844,823			3,595,710
Improvements to concessioned assets (note 15)								5,859,174		4,532,716		4,187,944
Accumulated amortization	(1,626,951		)	(1,466,068		)		(2,173,162)		(1,981,607)		(1,801,744)
							Ps.	7,648,417	Ps.	6,513,514	Ps.	6,348,605
	Ps.	6,180,277		Ps.	6,092,046

~~F-28~~

F-38

The changes in investment in concessions are as follows:


	December 31,						December 31,
	2014			2013			2017		2016		2015
Investment in airport concessions
Beginning balance	Ps.	7,558,114		Ps.	7,254,387		Ps.	8,495,121	Ps.	8,150,349	Ps.	7,807,228
Increase	307,327			352,688				1,326,458		344,772		347,988
Disposals	(58,213		)	(48,961		)		-		—		(4,867)

Ending balance	7,807,228			7,558,114				9,821,579		8,495,121		8,150,349
Amortization of airport concessions:
Beginning balance	(1,466,068		)	(1,311,398		)		(1,981,607)		(1,801,744)		(1,626,951)
Increase	(160,955		)	(157,225		)		(191,555)		(179,863)		(175,106)
Disposals	72			2,555				—		—		313

Ending balance	(1,626,951		)	(1,466,068		)		(2,173,162)		(1,981,607)		(1,801,744)

Net investment in airport concessions	Ps.	6,180,277		Ps.	6,092,046		Ps.	7,648,417	Ps.	6,513,514	Ps.	6,348,605

Master Development Plan– — The Company is obligated to carry out maintenance and improvements to concessioned ~~assets and acquire fixed~~ assets according to the master development program. The master development program for ~~2011-2015~~2016-2020 is ~~Ps. 2,745,214~~Ps.4,445,653 based on December ~~2009~~31, 2014 values and ~~Ps. 3,275,180~~Ps.5,443,013 based on December ~~2014~~31, 2017 values, updated using the National Producer Price Index (NPPI) excluding oil, ~~according~~in accordance with the concession ~~contract. As of~~contract, the amount to be incurred at December 31, ~~2014,~~2017 was Ps.3,554,823, which has a payment schedule in accordance with the ~~remaining amount which will be invested by the Company was Ps. 658,067 and expires in 2015.~~following:

~~Improvements made at the Company’s expense to airport facilities may be recognized by the Mexican Bureau of Civil Aviation (~~~~Dirección General de Aviación Civil~~, or “DGAC”) as part of the Company’s investment in the airport concession. The cost of airport improvements recognized by the DGAC that form part of the Company’s investment in the concession are “recovered” by the Company in the form of adjustments to the maximum rates that the Company may charge for aeronautical services, which are regulated by the DGAC.


Year	Amount
2018	Ps.	2,377,074
2019		711,353
2020		466,396
	Ps.	3,554,823

In 2009, the Company paid ~~Ps. 1,159,613~~Ps.1,159,613 to acquire land strategically located adjacent to the Monterrey airport to allow for the airport’s future growth, including the construction of a second runway, which the Company intends to complete in the future. The acquired land is classified in the Company’s financial statements for the year ended December 31, 2014 and 2013 as land owned by the Company at its acquisition value, presented as a fixed asset. The Company is negotiating the recognition of the cost of the investment made in this land with the ~~DGAC,~~Mexican Bureau of Civil Aviation, to enable the latter to recognize the land acquired within the framework of the future investments in the concession of the Monterrey airport as part of the master development program required for such airport, not as a fixed asset owned by the Company.

On December 4, 2012, the Monterrey airport received authorization from the ~~DGAC~~Mexican Bureau of Civil Aviation to include ~~Ps. 386,538~~Ps.386,538 (amount expressed in nominal pesos of 2009) in investments as part of master development program for 2011-2015. Of the Ps. 386,538 already authorized by the DGAC as part of the investments in concession, Ps. 121,701 was authorized as an investment in the year 2013, Ps. 138,486 was authorized as an investment in concession in the year 2014, and Ps. 126,351 in 2015. An additional amount of ~~Ps. 77,306~~Ps.77,306 was authorized by the ~~DGAC~~Mexican Bureau of Civil Aviation through an extraordinary review of the maximum rate in the year 2011. The Company is still negotiating with the ~~DGAC~~Mexican Bureau of Civil Aviation the recognition as an investment in concession of the remainder of the cost of the land acquired for the amount of ~~Ps. 695,769.~~Ps.695,759. All the amounts included in this disclosure are expressed in pesos of December 31, 2009. The current amounts, when recognized by the ~~DGAC~~Mexican Bureau of Civil Aviation as part of the investment in concession, will be adjusted based on the NCPI.

The Company’s airports exclusively own the lands acquired, which are classified in the consolidated statements of financial position under the headings of property, leasehold improvements and equipment. The land will remain classified under these ~~heading s~~headings until the negotiations with the ~~DGAC~~Mexican Bureau of Civil Aviation have concluded. If the ~~DGAC~~Mexican Bureau of Civil Aviation recognizes the land as part of the concession investment, it is estimated that the property will be transferred to the Mexican Government. At the time of such recognition, the Company shall derecognize the asset and recognize an inclusion of the same amount under ~~investments~~investment in airport concessions (improvements in concessioned assets), which will be subject to amortization for the remaining period of the concession.

F-39

The Company’s improvements to the airport facilities can be recognized by the Mexican Bureau of Civil Aviation (DGAC) as part of the investment in airport concession. The cost of airport improvements recognized by DGAC that are part of the Company’s investment in concessioned assets is “recovered” in the form of adjustments to the maximum rates that the Company may charge for aeronautical services, which are regulated by DGAC.

11.Composition of GACN

a.The following tables set forth information about the composition of GACN ~~at the end~~as of ~~the reporting period:~~December 31, 2017, 2016 and 2015:

~~F-29~~

~~Principal activity~~	~~Place of incorporation~~	~~Number of~~ ~~subsidiaries~~
	~~and operation~~
		~~December 31, 2014 and 2013~~
	Place of
	incorporation and	Number of
Principal activity	operation	subsidiaries
Airports	Mexico	13
Hotels	Mexico	2
Services	Mexico	8	9
		2324

b.The consolidated subsidiaries are as follows:

b.~~The consolidated subsidiaries are as follows:~~

Name of subsidiary	Ownership Percentage ~~December 31, 2014 and~~ ~~2013~~
Airport ~~services:~~services
Aeropuerto de Monterrey, S. A. de C. V.	100	%
Aeropuerto de Acapulco, S. A. de C. V.	100	%
Aeropuerto de ~~Mazatlán,~~Mazatlan, S. A. de C. V.	100	%
Aeropuerto de Zihuatanejo, S. A. de C. V.	100	%
Aeropuerto de ~~Culiacán ,~~Culiacan, S. A. de C. V.	100	%
Aeropuerto de Ciudad ~~Juárez,~~Juarez, S. A. de C. V.	100	%
Aeropuerto de Chihuahua, , S. A. de C. V.	100	%
Aeropuerto de ~~Torreón ,~~Torreon, S. A. de C. V.	100	%
Aeropuerto de Durango, S. A. de C. V.	100	%
Aeropuerto de Tampico, S. A. de C. V.	100	%
Aeropuerto de Reynosa, S. A. de C. V.	100	%
Aeropuerto de Zacatecas, S. A. de C. V.	100	%
Aeropuerto de San Luis ~~Potosí,~~Potosi, S. A. de C. V.	100	%
Hotels and Services
~~Hotels and Services:~~
Operadora de Aeropuertos del Centro Norte, S. A. de C. V.	100	%
Servicios Aeroportuarios del Centro Norte, S. A. de C. V.	100	%
Servicios Aero Especializados del Centro Norte, S. A. de C. V.	100	%
OMA ~~Logística,~~Logistica, S. A. de C. V.(1)	100	%
Holding Consorcio Grupo Hotelero T2, S. A. de C. V.(2)	100	%

(1)

~~In November 2012,~~

Includes subsidiaries in which the Company ~~constituted~~holds an equity participation through OMA Logistica: OMA VYNMSA Aero Industrial Park, S.A. de ~~C.V.~~C.V (VYNMSA) (51%), ~~whereby the Company owns 51% of the shares and in June 2013, constituted~~ Consorcio Hotelero Aeropuerto de Monterrey, ~~S.A.P.I.~~S.A.P.I de C.V (85%) and Servicios Hoteleros Aeropuerto de Monterrey, S.A. de C.V.~~, whereby the Company owns 85% of the shares.~~ (85%).

(2)

Provides hotel services and includes ~~its subsidiaries:~~subsidiaries in which the Company holds an equity participation through Holding Consorcio Hotelero T2: Servicios Complementarios del Centro Norte, S.A. de C.V. ~~and~~(100%), Servicios Corporativos Terminal 2, S.A. de C.V. (100%), ~~with 100% of the shares,~~ and Consorcio Grupo Hotelero T2, S.A. de C.V. ~~with 90% of the shares.~~(90%).

The Company has the majority of voting power at shareholders’ meetings of the subsidiaries and has control by virtue of its contractual right to appoint the board of directors of the companies.

As of December ~~2014~~31, 2017, 2016 and ~~2013,~~2015, the Company has not made investments in shares of any structured or investment-related entity.

~~F-30~~

F-40

12.Trade accounts payable

Trade accounts payable consist of the following:

December 31,

2014

2013

Suppliers

Ps.
96,029

Ps.
88,966

Contractors

97,177

68,968

Other accounts payable

54,796

61,148

Statutory employee profit sharing

9,554

7,102

Ps.
257,556

Ps.
226,184


	December 31,
	2017		2016		2015
Suppliers and contractors	Ps.	207,190	Ps.	212,939	Ps.	165,165
Customer advances		42,317		39,892		78,702
Statutory employee profit sharing		6,475		9,242		9,491
	Ps.	255,982	Ps.	262,073	Ps.	253,358

13.Payable taxes and other accrued expenses

~~Taxes~~Tax payable and other accrued expenses are comprised of the following:


	December 31,				December 31,
	2014		2013		2017		2016		2015
Accrued expenses	Ps.	146,455	Ps.	129,070	Ps.	145,123	Ps.	183,175	Ps.	171,046
Taxes payable	81,625		53,622
Taxes payable other than income tax						220,524		262,772		158,589
Accrued interest	41,148		36,320			69,125		43,254		42,425
	Ps.	269,228	Ps.	219,012	Ps.	434,772	Ps.	489,201	Ps.	372,060

~~14.~~~~Short-term debt~~

~~The Company’s short-term~~14. Short-term debt as of December 31, 2013 was comprised of Ps. 99,421, which corresponds to a short-term securitization certificate program amounting to Ps. 200,000 and maturing on March 19, 2015. This program consists of revolving issuances with different terms and accruing interest for each issuance. As of December 31, 2013, the discount interest rate was 3.72%. As of December 31, 2014, there were no outstanding payment balances for this short-term program.

~~The short-term share certificate program does not provide restrictive clauses with which the Company must comply.~~

As of December 31, ~~2014,~~2017, the Company ~~had~~has short-term credit lines available with financial institutions for ~~Ps. 1,200,000 and had the ability to issue an additional Ps. 200,000 in short-term debt certificates until March 19, 2015.~~Ps.350,000.

15.Long-term debt

~~Long-term~~The long-term debt with credit institutions, debt issuances and other marketable securities as of December 31, ~~2014~~2017, 2016 and ~~2013~~2015, amounted to ~~Ps. 4,742,032~~Ps.4,644,387, Ps.4,707,303 and ~~Ps. 3,013,563,~~Ps.4,729,388, respectively, before amortization of financing commissions and is comprised as follows:

~~F-31~~

F-41


	December 31,
	2017		2016		2015
Debt securities issued in the Mexican market on June 16, 2014, for Ps. 3,000,000, accruing interest at a fixed rate of 6.85%, for a 7-year term maturing on June 7, 2021. GACN and nine of the 13 airports guarantee the certificates, which represent a guarantee of 80% of consolidated EBITDA	Ps.	3,000,000	Ps.	3,000,000	Ps.	3,000,000

Debt securities issued in the Mexican market on March 26, 2013, for Ps. 1,500,000, accruing interest at a fixed rate of 6.47%, for a 10-year term maturing on March 14, 2023. GACN and nine of the 13 airports guarantee the certificates, which represent a guarantee of 80% of consolidated EBITDA		1,500,000		1,500,000		1,500,000

Unsecured lines of credit with Private Export Funding Corporation (supported by Ex-Im Bank) in 2010 and 2011 for U.S. $ 20,385 thousand maturing on December 21, 2021. As December��31, 2017, 2016 and 2015, outstanding amounts were U.S$ 6,536,000, U.S$8,489,000 and US$10,441,000, respectively. Baggage screening equipment was pledged to secure the loan(2). The loan accrues interest at a three-month London Interbank Offered (“LIBOR”) rate plus 1.25 percentage points, with quarterly payments of principal. As of December 31, 2017, 2016 and 2015, the interest rate was 2.94%, 2.25% and 1.86%, respectively.		128,991		175,410		181,050

Line of credit with UPS Capital Business Credit (supported by Ex-Im Bank) for U.S.$3,120,000. The amount was drawn down upon in April 20, 2014, and the line of credit terminates on January 25, 2019. As of December 31, 2017, 2016 and 2015, the outstanding balance was U.S$ 780,000, U.S$ 1,404,000 and US$2,028,000, respectively. The line of credit is secured by firefighting equipment (1). The loan bears interest at three-month LIBOR plus 2.65 percentage point with quarterly principal payments. As of December 31, 2017, 2016 and 2015, the interest rate was 4.34%, 3.65% and 3.26%, respectively.		15,396		29,016		35,170

Unsecured line of credit with UPS Capital Business Credit (supported by Ex-Im Bank) of U.S$2,775,000, which was contracted in 2012 and terminated on August 1, 2017. As of December 31, 2016 and 2015, the balance was U.S$139,000 and U.S$759,000, respectively. Baggage screening equipment acquired in 2010 and 2011 is pledged to secure the loan(2).		—		2,877		13,168
Total long-term debt		4,644,387		4,707,303		4,729,388
Less:

F-42

December 31,

2014

2013

Debt certificates issued in the Mexican market on June 16, 2014, for Ps. 3,000,000, accruing interest at a fixed rate of 6.85%, for a 7-year term maturing on June 7, 2021. GACN and nine of the 13 airports guarantee the certificates, which represent a guarantee of 80% of consolidated EBITDA.

Ps.
3,000,000

Ps.
-

Debt certificates issued in the Mexican market on March 26, 2013, for Ps. 1,500,000, accruing interest at a fixed rate of 6.47%, for a 10-year term maturing on March 14, 2023. GACN and nine of the 13 airports guarantee the certificates, which represent a guarantee of 80% of consolidated EBITDA.

1,500,000

1,500,000

Unsecured debt certificates issued in the Mexican market on July 15, 2011 of Ps. 1,300,000, accruing interest at a variable 28-day Mexican Interbank Equilibrium (“TIIE”) rate plus 70 basis points, for a 5-year term maturing on July 8, 2016. The certificates are guaranteed by nine of the 13 airports whose sum of their EBITDA complies with a minimum guarantee of 80% of consolidated EBITDA. As of December 31, 2013 the interest rate was 4.50%. The certificates were prepaid in July 2014 with the proceeds from the issue of debt certificates issued in June 2014.

-

1,300,000

Unsecured lines of credit with Private Export Funding Corporation in 2012 for U.S. $ 20,385,000 maturing on December 21, 2021. As December 31, 2014 and 2013, outstanding amounts were U.S.$ 12,394,000 and U.S.$ 14,347,000, respectively. Baggage screening equipment is pledged to secure the loan(1). The loan accrues interest at a three-month London Interbank Offered (“LIBOR”) rate plus 1.25 percentage points, with quarterly payments of principal. As of December 31, 2014 and 2013, the interest rate was 1.49% and 1.50%, respectively.

182,622

187,436

Line of credit with UPS Capital Business Credit (supported by Ex-Im Bank) for U.S.$ 3,120,000. The amount was drawn down upon in April 11, 2014, and the line of credit terminates on January 25, 2019. As of December 31, 2014, the outstanding balance is U.S.$ 2,652,000. The line of credit is secured by firefighting equipment(1) and guaranteed by the airports described in Note 2. The loan bears interest at three -month LIBOR plus 2.65 percentage point with quarterly principal payments. As of December 31, 2014, the interest rate is 2.88%.

39,082

-

Unsecured line of credit with UPS Capital Business Credit (supported by Ex-Im Bank) of U.S.$ 4,463,000, and the line of credit terminates on August 1, 2017. As of December 31, 2014 and 2013, the balance is U.S.$. 1,380,000 and U.S.$ 2,000,000, respectively. Baggage screening equipment is pledged to secure the loan(2). The loan bears interest at a three-month LIBOR rate plus 0.95 percentage points, with quarterly payments of principal and maturing on August 1, 2017. As of December 31, 2014 and 2013, the interest rate was 1.18% and 1.19%, respectively.

20,328

26,127

Total long-term debt

4,742,032

3,013,563

Less:

Financing commissions and issuance costs, net

(17,631)

(9,449
)

4,724,401

3,004,114

Current portion

(47,076)

(33,588
)

Long-term debt

Ps.
4,677,325

Ps.
2,970,526

~~F-32~~

Financing commissions		(11,115)		(13,438)		(15,606)
		4,633,272		4,693,865		4,713,782
Current portion long-term debt		(50,852)		(56,122)		(55,433)
Long-term debt	Ps.	4,582,420	Ps.	4,637,743	Ps.	4,658,349

(1)

Carrying values are Ps.44,590, Ps.53,421 and Ps.62,251 as of December 31, 2017, 2016 and 2015, respectively, recorded as improvements to concessioned assets (note 10). The Company is not authorized to use these as collateral or sell them.

(2)

Carrying value amounts to Ps.292,922, Ps.301,835 and Ps.310,749 as of December 31, 2017, 2016 and 2015, respectively, and is recorded in improvements to concessioned assets (note 10). The Company is not authorized to grant such equipment as collateral in other loans or sell them to another Company.

~~(1)Carrying values are~~The movement of the initial balance to the final balance of the bank loans for the years ended December 31, 2017, 2016 and 2015 correspond to debt principal payments of $51,168, $58,875 and $52,765, respectively, and the exchange gain (loss) effects of Ps.11,748, Ps. ~~71,081~~(36,790) and Ps. ~~71,773 as of December 31, 2014 and 2013, respectively, recorded as improvements to concessioned assets. The Company~~(40,121), respectively. There is ~~not authorized to use~~no new loan or other movement associated with these ~~as collateral or sell them.~~

~~(2)~~Carrying value amounts to Ps. 319,662 and Ps. 328,577 as of December 31, 2014 and 2013, respectively, and is recorded in improvements to concessioned assets (Note 10). The Company is not authorized to grant such equipment as collateral in other loans or sell them to another entityloans.

Maturity of long-term debt as of December 31, ~~2014,~~2017, 2016 and 2015 is ~~disclosed~~described in ~~Note~~note 21.

Outstanding long-term loans include certain restrictive clauses such as, but not limited to, limiting bank loans to subsidiaries, pledge provision, tax ~~payment~~payments, other obligations, disposal of fixed assets and other noncurrent assets, as well as the obligation to maintain certain financial ratios. For the years ended December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, these restrictions were met.

16.Major maintenance provision

The Company has the obligation to perform major maintenance activities in its airports. The provision is recognized as accrued at an amount that represents the best estimate of the present value of future disbursements required to settle the obligation, at the date of the accompanying consolidated financial statements at a discount rate of 8.85%, 9.42% and 6.85% ~~and 6.47%~~ as of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, respectively.

This provision is recognized in accordance with IAS 37 and IFRIC 12. A portion is recorded as short-term and the remainder as long-term depending on the period in which the Company expects to perform the major maintenance activities.

As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, the composition and changes of the Company’s major maintenance provision was as follows:

December 31,

Provisions

December 31, 2014

2013

Additions

used

Short-term

Long-term

Major maintenance of concessioned assets

Ps.
628,606

Ps.
183,863(1)

Ps.
(219,680)

Ps.
184,709

Ps.
408,080

December 31,

Provisions

December 31, 2013

2012

Additions

used

Short-term

Long-term

Major maintenance of concessioned assets

Ps.
563,306

Ps.
294,149(1)

Ps.
(228,849)

Ps.
271,344

Ps.
357,262

December 31,

December 31, 2017

2016

Additions

Disbursements

Short-term

Long-term

Major maintenance of concessioned assets

Ps.

669,653

Ps.

285,755

(1)

Ps.

(97,784)

Ps.

232,645

Ps.

624,979

December 31,

Provisions

December 31, 2012

2011

Additions

used

Short-term

Long-term

Major maintenance of concessioned assets

Ps.
601,068

Ps.
164,208

Ps.
(201,970)

Ps.
145,577

Ps.
417,729

December 31,

December 31, 2016

2015

Additions

Disbursements

Short-term

Long-term

Major maintenance of concessioned assets

Ps.

603,703

Ps.

168,804

(1)

Ps.

(102,854)

Ps.

160,607

Ps.

509,046

December 31,

December 31, 2015

2014

Additions

Disbursements

Short-term

Long-term

Major maintenance of concessioned assets

Ps.

592,789

Ps.

182,561

(1)

Ps.

(171,647)

Ps.

220,410

Ps.

383,293

(1)

Includes Ps. (5,477), Ps. (94,072) and Ps. 8,268, recognized as interest (income) expense in the consolidated statement of income and other comprehensive income, for the accumulated effect of the present value estimation as of December 31, 2017, 2016 and 2015, respectively.

F-43

~~(1)~~Includes Ps. 3,931 and Ps. 30,982 recognized as interest expense in the consolidated statement of income and other comprehensive income, for the accumulated effect of the present value estimation as of December 31, 2014 and 2013, respectively.

17.Labor obligations

a.Defined ~~contribution~~contribution plan

The Company offers defined contribution plans for all employees who qualify. The plan assets are kept separate from the Company’s assets in funds kept in a trust under the control of trustees. If the employee leaves the plan before fully vesting, the ~~amount payable~~trust will pay the employee up to 50% as of the fifth year in which he or she adhered to such plan and increase by ~~the Company will be reduced by the amount of lost contributions.~~10% each year until reaching 100%.

The total ~~expense recognized in the consolidated statement of income is Ps. 1,806, Ps, 2.452 and Ps. 1,876 in 2014, 2013 and 2012, respectively, and represents the~~ contributions ~~payable by the Company~~ to these plans based on the specific rates in the ~~plan.~~plan amounted to Ps.1,105, Ps.1,666 and Ps.1,460 in 2017, 2016 and 2015, respectively. A total of ~~Ps. 1,271~~Ps.541, Ps.2,628 and ~~Ps. 901~~Ps.2,232 in ~~2014~~2017, 2016 and ~~2013,~~2015, respectively, ~~has not been paid~~is pending of payment to the trust. ~~As of December 31, 2012, there were no pending contributions.~~

~~F-33~~

b.Defined benefit ~~plan~~plans

~~The~~This liability for employees ~~which~~ derives from ~~the~~a pension plan, seniority premiums benefits and ~~payments at the end of employment to employees upon retirement, are determined based on actuarial computations made by external actuaries, using the projected unit credit method.~~ termination benefits.

Seniority premiums consist of a single payment equal to 12 days’ salary for each year of service based on the employee’s most recent salary based on the Unidad de Medida y Actualización (Unit of Measurement and Update), but without exceeding twice the current minimum wage established by ~~law.~~law and the payments for the pension plan consist of an equivalent of 20 days for each year worked and 90 days based on the pensionable salary determined on actuarial calculations performed by external actuaries, using the projected unit credit.

~~During 2012,~~As of December 2011, the pension plan was modified, establishing an early retirement from age 60 for all employees with aat least 10 years of service ~~with~~to the Company.

The Mexican plans normally expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.


Investment risk		The present value of the defined benefit plan obligations ~~defined benefit~~ is calculated using a discount rate that is determined ~~based on the yields of~~by long-term government ~~bonds.~~bond yields. To select the discount rate, ~~a bond~~the yield rate ~~that~~of the bond is considered, which is similar to the duration of the obligations of the Company’s labor liabilities of the Company is considered. This rate is obtained from a company dedicated to providing current pricing for the valuation of financial instruments prices, as well as comprehensive calculation, reporting, analysis and risks associated with these prices and is regulated by the Mexican National Banking and Securities Commission (~~Comisión Nacional Bancaria y de Valores~~).liabilities. The ~~determination of the appropriate rate takes into account the~~ average days ~~over~~on which ~~benefits will be payable, as opposed~~benefit payments are due and not the days that the bonus is due to ~~the maturity of the bonds,~~expire are taken in to account, which means that the discount rate ~~will depend~~depends on the ~~expectations~~expectation of the flow of payments of the benefits ~~under the~~ plan.

Interest risk		A decrease in the interest rate of the bonds may increase the liabilities of the ~~plan.~~plan, however, this is partially offset by an increase in the plan’s debt investment performance.

Longevity risk		The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

Salary risk		The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability.

There are no ~~further~~additional retirement benefit plans for ~~the~~ qualifying employees.

F-44

The ~~most recent~~ actuarial calculation of the defined benefit obligation ~~were carried out~~was calculated as of December 31, ~~2014~~2017, 2016 and 2015 by actuaries certified by the National School of Actuaries (Colegio Nacional de Actuarios de México). The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

The principal assumptions used for the purposes of the actuarial valuations are as follows:

	Year ended December 31,
	2014	2013	2012	Year ended December 31,
				2017		2016		2015
Discount rate (Note 5a.)	7.00%	7.50%	6.50%
Discount rate (note 5 a.)				7.75	%	7.75	%	7.25	%
Expected rate of salary increase	4.50%	5.5%	5.5%	4.50	%	4.50	%	4.50	%
Average longevity at retirement age for current pensioners (years)	12	15	14	14		15		12
Inflation	3.50%	4.0%	4.0%	3.50	%	3.50	%	3.50	%

The amounts recognized in the statement of income and other comprehensive income in respect of these defined benefit plans are as follows:

~~F-34~~


	Year ended December 31,
	2017		2016		2015
Service cost:
Current service cost	Ps.	7,995	Ps.	7,629	Ps.	7,574
Net interest expense		7,672		6,664		5,627
Components of defined benefit costs recognized in profit or loss		15,667		14,293		13,201
Remeasurement on the net defined benefit liability:
Actuarial gains and losses arising from changes in financial assumptions		—		(5,815)		(4,554)
Actuarial gains and losses arising from experience adjustments		4,199		2,282		5,840
Components of defined benefit costs recognized in other comprehensive income		4,199		(3,533)		1,286
Total	Ps.	19,866	Ps.	10,760	Ps.	14,487

Year ended December 31,

2014

2013

2012

Service cost:

Current service cost

Ps.
7,379

Ps.
6,575

Ps.
5,310

Net interest expense

5,342

4,338

3,891

Components of defined benefit costs recognized in profit or loss

12,721

10,913

9,201

Remeasurement on the net defined benefit liability:

Actuarial gains and losses arising from changes in financial assumptions

(1,586
)

(3,986
)
11,313

Actuarial gains and losses arising from experience adjustments

1,149

6,837

-

Components of defined benefit costs recognized in other comprehensive income

(437
)

2,851

11,313

Total

Ps.
12,284

Ps.
13,764

Ps.
20,514

The current service cost and the net interest expense ~~for 2014, 2013 and 2012~~ are included in the employee benefits expense in the consolidated statement of income and in other comprehensive income.

The remeasurement of the net defined benefit liability is included in other comprehensive income.

The amount included in the consolidated statement of financial position arising from the Company’s obligation in respect of its defined benefit plans is as follows:

December 31,

2014

2013

Present value of defined benefit obligation

Ps.
94,313

Ps.
82,497


	December 31,
	2017		2016		2015
Present value of defined benefit obligations	Ps.	127,479	Ps.	111,921	Ps.	106,414

F-45

Movements in the present value of the defined benefit obligation in the current year are as follows:

	December 31,
	2014			2013			December 31,
							2017		2016		2015
Present value of defined benefit obligation as of January 1	Ps.	82,497		Ps.	70,321
Present value of defined benefit obligation as of January 1,							Ps.	111,921	Ps.	106,414	Ps.	94,313
Current service cost	7,379			6,575				7,995		7,629		7,574
Interest cost	5,342			4,338				7,672		6,664		5,627
Remeasurement (gains)/losses:
Transfers of employees	-			(106		)
Actuarial gains and losses arising from changes in financial assumptions	(1,586		)	(3,985		)
Actuarial gains and losses arising from changes in financial and demographic assumptions								-		(5,815)		(4,554)
Actuarial gains and losses arising from experience adjustments	1,149			6,837				4,199		2,282		5,840
Benefits paid	(468		)	(1,483		)		(4,308)		(5,253)		(2,386)

Present value of defined benefit obligation as of December 31	Ps.	94,313		Ps.	82,497
Present value of defined benefit obligation							Ps.	127,479	Ps.	111,921	Ps.	106,414

Significant actuarial assumptions for the determination of the defined obligation are discount rate, expected salary increase and mortality. The sensitivity analyses below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

·If the discount rate ~~is 25 basis points higher (lower)~~increases (decreases) by 1%, the defined benefit obligation would decrease to ~~Ps. 92,254~~Ps.118,737 (increase ~~to Ps. 96,431)~~by Ps.137,803).

·If the expected salary growth increases (decreases) by ~~25 basis points,~~1%, the defined benefit obligation would increase to ~~Ps.96,140~~Ps.136,949 (decrease ~~to Ps. 92,546)~~by Ps.119,365).

~~F-35~~

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognized in the consolidated statement of financial position.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

There ~~has been~~was no change in the process ~~used~~followed by the Company to manage its risks from prior periods.

The average duration period of the benefit obligation as of December 31, ~~2014~~2017 is 119.0 years ~~(2013: 12~~(2016: 8.8 years and 2015: 9.0 years).

~~18.~~~~Leases~~

F-46

Expected cash flows from pension plans and seniority premium benefits are as follows:


			Seniority premium
Year	Pensions plan		benefits		Total
2018	Ps.	28,776	Ps.	1,638	Ps.	30,414
2019		6,435		1,469		7,904
2020		8,397		1,505		9,902
2021		5,370		1,489		6,859
2022		5,361		1,520		6,881
From 2023 to 2028		44,122		8,563		52,685
Total	Ps.	98,461	Ps.	16,184	Ps.	114,645

~~Operating leases~~18. Leases

~~Leases correspond principally to~~Operating leases

Lease contracts entered into by the Company ~~which~~ are ~~based on the following:~~as follows:

a.As lessee

Cost and expenses of operating leases:

·In October 2008, the Company acquired the shares of Consorcio Grupo Hotelero T2, S.A. de C.V. As a result of this acquisition, the Company assumed the commitments established in the lease agreement signed with the Mexico City ~~airport~~International Airport for a period of 20 years, to construct, prepare and operate a hotel, and manage commercial areas at Terminal 2 of the Mexico City International Airport, establishing a minimum guaranteed income ~~(��~~(“MGI”) of ~~Ps. 18,453~~Ps.18,453 annually as rent, plus a royalty of the 18% of the hotel’s revenue. The MGI will be adjusted on an annual basis using the NCPI.

·The Company entered into a lease agreement with ~~HSBC,~~Banco Invex, S.A. ~~Multiple Banking Institution, Grupo Financiero HSBC, Trust Division~~ for ~~floor space at its corporate~~property, used for our headquarters office, for a ~~lease~~ term of 6660 months, starting ~~from October 1, 2011.~~on September 30, 2016. A monthly minimum rent of ~~Ps. 474~~Ps.638 was established. The rent will be adjusted annually based on the NCPI with a 3% minimum increase.

Payments recognized as cost and ~~expense~~:expense:

Year ended December 31,

2014

2013

2012

Costs and leasing expenses

Ps.
42,979

Ps.
39,343

Ps.
33,274


	Year ended December 31,
	2017		2016		2015
Costs and leasing expenses	Ps.	53,070	Ps.	47,649	Ps.	44,779

Operating ~~leases~~lease commitments:

	December 31
Duration	2014		2013
					Year ended December 31,
					2017		2016		2015
Duration:
Less than one year	Ps.	32,353	Ps.	32,333	Ps.	37,053	Ps.	27,950	Ps.	32,913
Greater than 1 year and less than 5 years	111,359		88,635			139,359		104,984		106,739
Greater than 5 years	239,668		246,530			192,846		192,471		218,719

Total	Ps.	383,380	Ps.	367,498	Ps.	369,258	Ps.	325,405	Ps.	358,371

F-47

b.As lessor

Revenues from operating leases

Mainly related to leases entered into by the Company, which are based on monthly rental payments that generally increase each year based on the NCPI, and/or the greater of a guaranteed minimum monthly

~~F-36~~

rent plus a percentage of monthly income of the tenant. As of December 31, ~~2014 and 2013,~~2017, the committed future rents are as follows:

	December 31,
Duration	2014		2013
					Year ended December 31,
Less than one year	Ps.	323,335	Ps.	345,808
					2017		2016		2015
Duration:
Less than 1 year					Ps.	287,650	Ps.	402,871	Ps.	352,644
Greater than 1 year and less than 5 years	469,142		367,443			542,063		741,320		521,026
Greater than 5 years	150,433		129,624			117,911		321,870		93,110

Total	Ps.	942,910	Ps.	842,875	Ps.	947,624	Ps.	1,466,061	Ps.	966,780

Minimum lease payments in the table above do not include contingent rentals, such as increases by NCPI or increases by a percentage of the monthly income of the lessee. Contingent rental income recorded for the years ended December 31, ~~2014, 2013~~2017, 2016, and ~~2012~~2015 were ~~Ps. 80,058, Ps. 73,823~~Ps.204,172, Ps.178,469 and ~~Ps. 72,258,~~Ps.116,905, respectively.

Revenues from operating leases are disclosed in ~~Note~~note 27.

~~19.~~c.~~Income tax~~Financial lease (as lessee)

~~The Company was subject to ISR as of December 31, 2014, and IETU through December 31, 2013.~~


	December 31,
	2017
Total long-term financial lease (1)	Ps.	37,450
Current portion		(6,592)
Long-term financial lease	Ps.	30,858

~~2014 Tax Reform~~(1)

~~ISR~~ ~~– The rate was 30%~~ Financial obligations for ~~the years 2014, 2013~~financial lease contracts for aerocars and ~~2012,~~other equipment, which accrue up to 48 monthly rents, principal and ~~according to the new 2014 ISR Law (Law 2014), will remain 30% for 2015 and the years thereafter.~~interest payments are made monthly, with monthly maturities until June 2021.

~~In December 2013, Congress approved the Mexican Tax Reform (the “2014 Tax Reform”) which, among other things, eliminated~~ ~~IETU. As a result of the elimination of IETU, the Company eliminated any existing deferred IETU upon the enactment date of the 2014 Tax Reform.~~19. Income taxes

The Company ~~began to consolidate its tax result as of fiscal year 2003, as established in the Mexican Income Tax Law in effect in that year, within the tax results of Empresas ICA.~~

In July 2013, Empresas ICA carried out a public offering to small investors through Aeroinvest to sell part of its shareholding in GACN. Under the assumptions established in the Mexican Income Tax Law in effect in 2013, such transaction represented the reduction of its shareholding in GACN. Consequently, Empresas ICA had to remove GACN from its tax consolidation regime.

~~IETU~~ ~~– In 2014, the IETU was repealed. Accordingly, the Company~~ is subject to ~~ISR, and recognized current IETU through December 31, 2013. This~~Income Tax (“ISR”), whose tax ~~was generated based on cash flows from income less authorized deductions and certain tax credits each year. The~~ rate was ~~17.5%. Due to the elimination of the tax, the Company canceled the Ps. 336,071 balance of deferred IETU in its results of operations~~30% for 2017, 2016 and ~~its financial position~~2015 and will continue at 30% for ~~the year ended December 31, 2013.~~

~~Through December 31, 2013, the income tax rate imposed was the greater of the income tax rate and the flat tax rate.~~later years.

In 2008, the Asset Tax Law was repealed, however, under certain circumstances, the IMPAC paid during the ten years prior to the year in which ISR is paid may be recovered, according to the terms of the law.

a.Income tax are as follows:

Year ended December 31,

2014

2013

2012

Current ISR

Ps.
298,968

Ps.
267,928

Ps.
245,885

Current IETU

-

460

5,553

IMPAC

-

(67,193
)

-

Deferred ISR

(66,623
)

(336,071
)

36,734

Income tax (benefit) expense

Ps.
232,345

Ps.
(134,876
)

Ps.
288,172


	Year ended December 31,
	2017		2016		2015
Current ISR	Ps.	810,641	Ps.	672,298	Ps.	453,066
Deferred ISR		2,432		74,484		59,044
Income tax expense	Ps.	813,073	Ps.	746,782	Ps.	512,110

~~F-37~~

F-48

b.As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, the principal items comprising the balance of the deferred ISR asset ~~and liability~~(liability) were:


	Year ended December 31,								December 31,
	2014			2013			2017		2016		2015
Liabilities:
Provisions, allowances and labor obligations	Ps.	81,098		Ps.	79,543		Ps.	116,740	Ps.	99,313	Ps.	69,288
Investments in airport concessions, property, leasehold improvements and equipment, net	(395,956		)	(420,873		)
Tax loss carryforwards	57,727			70,704
Investment in airport concessions, property, leasehold improvements and equipment, net								(362,866)		(419,384)		(386,888)
Tax loss carryforwards (1)								9,955		53,004		42,919
Recoverable tax on assets	67,193			67,193				39,090		48,276		73,633

Total liabilities	Ps.	(189,938	)	Ps.	(203,433	)	Ps.	(197,081)	Ps.	(218,791)	Ps.	(201,048)

Assets:
Provisions, allowances and labor obligations	Ps.	203,063		Ps.	207,391		Ps.	217,987	Ps.	190,164	Ps.	189,002
Investments in airport concessions, property, leasehold improvements and equipment, net	(361,906		)	(372,270		)		(281,119)		(303,839)		(360,211)
Tax loss carryforwards(1)	663,211			616,250				411,166		493,778		634,469

Total assets	Ps.	504,368		Ps.	451,371		Ps.	348,034	Ps.	380,103	Ps.	463,260
Net deferred ISR asset (liability)	Ps.	314,430		Ps.	247,938
Net deferred ISR asset							Ps.	150,953	Ps.	161,312	Ps.	262,212

~~(1)~~As of December 31, 2014 and 2013, the Company recognized a deferred tax asset of Ps. 720,938 and Ps. 686,954, respectively, corresponding to the tax losses generated by its subsidiaries. During 2014, the Company decided to recognize Ps. 75,377 of deferred tax asset previously unrecognized, due to changes in the estimation of the probability of recovery of tax losses of two of its airports. The change was driven largely by increases in passenger traffic and, therefore, the increase in future taxable profits tax. All subsidiaries of the Company expect to benefit from losses in future years based on projections of taxable income and various trading strategies with favorable tax consequences.

(1)

As of December 31, 2017, 2016 and 2015, the Company recognized a deferred tax asset of Ps.421,121, Ps.546,782 and Ps.677,388, respectively, corresponding to the tax losses generated by its subsidiaries. All subsidiaries of the Company expect to benefit from losses in future years based on projections of taxable income and various strategies with favorable tax consequences. For the years ended December 31, 2017 and 2016, the Company did not make changes in the deferred asset estimates for amortizable tax losses.

c.The changes in deferred tax during the year are as follows:

	December 31
	2014			2013					December 31,
							2017		2016		2015
Beginning balance of deferred tax liability	Ps.	247,938		Ps.	(156,169	)
Beginning balance of deferred tax liability, net							Ps.	161,312	Ps.	262,212	Ps.	314,430
Deferred ISR in results	66,623			336,071				(2,432)		(74,484)		(59,044)
Recoverable tax on assets				67,193				(9,186)		(25,356)		6,440
Income tax effects recognized in other comprehensive income	(131		)	843				1,259		(1,060)		386
Ending balance of deferred tax asset, net	Ps.	314,430		Ps.	247,938		Ps.	150,953	Ps.	161,312	Ps.	262,212

F-49

d.The reconciliation of the statutory income tax rate and the effective income tax rate as a percentage of net income before income tax is as follows:

Year ended December 31,

2014

2013

2012

Statutory rate

30.00
%

30.00
%

30.00
%

Add (deduct) effects of permanent differences, primarily, non-deductible expenses and inflationary effects for financial and tax purposes.

(4.25
)

(8.50
)

(4.28
)

Effects of the 2014 fiscal reform, including changes in tax rates and elimination of IETU

-

(31.60
)

-

Change in estimate of recoverable IMPAC

-

(6.30
)

-

Change in unrecognized deferred income tax on assets

(5.99
)

2.70

5.03

Others

(1.31
)

1.10

(4.72
)

Effective rate

18.45
%

(12.60
)%

26.03
%

~~F-38~~


		Year ended December 31,
	2017				2016				2015
	Amount		Rate %		Amount		Rate %		Amount		Rate %
Income before income taxes	Ps.	2,950,515			Ps.	2,623,283			Ps.	1,748,747
Current ISR		810,641				672,298				453,066
Deferred ISR		2,432				74,484				59,044
Effective rate	Ps.	813,073	27.56	%	Ps.	746,782	28.47	%	Ps.	512,110	29.28	%
Add (deduct) effects of permanent differences, primarily, non-deductible expenses and inflationary effects for financial and tax purposes.		71,107	2.41	%		37,513	1.43	%		19,236	1.10	%
Other		975	0.03	%		2,690	0.10	%		(6,722)	(0.38)	%
Statutory rate	Ps.	885,155	30.00	%	Ps.	786,985	30.00	%	Ps.	524,624	30.00	%

Table of ~~paid and unrecognized IMPAC as deferred income may be recovered subject to certain conditions. Expiration dates at December 31, 2014 are:~~Contents

e.Each airport concession has received approval from the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) to carry forward their tax losses up to the earlier of the date of which such tax loss carryforwards are utilized by the airport or the date of expiration or liquidation of the concession. The base years and amounts as of December 31, ~~2014~~2017 are as follows:

Year of	Tax loss
origin	carryforwards
2000	Ps.		49,556

				Tax loss
Year of Origin				carryforwards
2001	311,668			Ps.	5,745
2002	482,550				190,164
2003	593,717				346,924
2004	521,803				423,841
2005	61,980				60,981
2006	90,145				64,235
2007	88,698				86,884
2008	43,989				42,405
2009	4,508				5,072
2010	-
2011	45,796				31,988
2012	57,972				65,230
2013	36,001				40,508
2014		5,742
2015					30,112
				Ps.	1,394,089
	Ps.		2,394,125

f.In addition to the tax loss carryforwards of the airport concessionaires aforementioned, the Company has tax losses of other subsidiaries other than its concessionaires in the amount of ~~Ps. 9,007,~~Ps.9,648 the duration of which is 10 years under the Income Tax Law, and the maturity date of which is between ~~2017~~2018 and ~~2024.~~2026.

g.In ~~2014,~~2017, the Company ~~amortized~~utilized tax loss carryforwards in the amount of ~~Ps. 244,081.~~Ps.506,543.

h.~~The~~During 2002 through 2007, the Company recognized a deferred tax asset for IMPAC paid in the amount of ~~Ps. 67,193~~Ps.67,193 in 2013, which may be recoverable subject to certain ~~conditions.~~conditions established in the Income Tax Law, recognizing an update of Ps.6,440 in 2015. The Company recovered an amount of Ps.9,186 in 2017, and Ps. 25,356 in 2016. The updated amount as of December 31, 2017 was Ps.39,090.

i.~~The benefits~~

F-50

Maturity

Recoverable

IMPAC

2015

Ps.
28,889

2016

21,274

2017

18,274

Ps.
68,437

j.~~The~~i.The balances of shareholders’ equity tax accounts as of December 31 ~~2014 and 2013 were:~~are:

December 31,

2014

2013

Contributed capital account

Ps.
4,777,082

Ps.
5,763,501

Net consolidated tax profit account

844,321

388,140

Total

Ps.
5,621,403

Ps.
6,151,641


	December 31,
	2017		2016		2015
Contributed capital account	Ps.	3,940,312	Ps.	3,700,652	Ps.	3,580,472
Net consolidated tax profit account		1,331,694		1,018,588		1,515,123
Total	Ps.	5,272,006	Ps.	4,719,240	Ps.	5,095,595

k.Dividends paid from profits generated from January 1, 2014 to individuals residing in Mexico and residents abroad may be subject to additional income taxes of up to 10%, which shall be retained by the Company.

~~F-39~~20. Commitment and contingencies

~~20.~~~~Contingencies and commitments~~Commitment

~~Commitment~~

Guarantor — .In 2014 and 2013, GACN issued long-term ~~securitization certificates~~debt securities for the amount of Ps. 3,000,000 and Ps. 1,500,000 ~~for seven~~with terms of 7 and 10 years, respectively, under the ~~securitization certificate program discussed in Note 15.~~2011 program. The Company and nine of its airports are guarantors of the ~~certificates~~debt securities and must provide a minimum guarantee equal to 80% of EBITDA.

Contingencies

a.~~Real estate property tax~~Property tax.~~. These cases involve lawsuits and/or~~

Reynosa Airport

Administrative law proceedings ~~filed~~have been asserted against the ~~Company’s airports~~Company in the past by the municipality for ~~unpaid taxes. The~~the payment of property tax with respect to the real estate on which the Company operates the airport in this city.

In November 2011, August 2012 and March 2014, the municipality of Reynosa filed ~~proceedings~~property tax claims against the Company for ~~annulment with certain Tax Courts against~~Ps.127,312,Ps.1,119 and Ps.1,361, respectively. In response to these ~~payment requests, all of which are currently awaiting rulings.~~claims, the Company has filed administrative appeals before the Administrative Court (Tribunal de lo Contencioso Administrativo del Estado de Tamaulipas).

As of the date of the consolidated financial statements, ~~these~~the contingencies ~~remain~~are maintained due to the fact that the ~~lawsuits are ongoing and pending a ruling based on the merits of the case. The Ministry of Communications and Transportation has appeared~~judgment continues in court in relation to these lawsuits. However, if the Company receives an unfavorable ruling, the Company believes the economic effects will be assumed by the Mexican Federal Government, except in the case of Zihuatanejo airport. The Company has not recorded any provision for these lawsuits as it expects to receive a favorable ruling.

~~As of December 31, 2014, the Company’s subsidiaries are involved in the following lawsuits, all of which are awaiting rulings:~~

1.~~Reynosa Airport~~

~~In February 2011, the Company filed an administrative appeal before the Administrative Court (~~~~Tribunal de lo Contencioso Administrativo del Estado de Tamaulipas~~~~) against the request by the municipality of Reynosa for the payment of Ps. 117,654; the request does not specify the period for which this amount is outstanding. The appeal~~force since there is still ~~pending.~~

~~The municipality of Reynosa once again requested tax payments~~no decision to resolve these matters in ~~November 2011 and August 2012 of Ps. 127,312 and Ps. 1,119, respectively. The Company filed administrative appeals against these requests,~~ which ~~are still pending.~~

In March 2014, the municipality of Reynosa requested that the Company settle allegedly unpaid real estate property taxes and attempted to collect these amounts through different writs of execution associated with request number 1334096 for the amount of Ps. 1,361, dated March 7, 2014. Notification of this request was given on March 20, 2014.

2.~~Culiacán Airport~~

In September 2014, the municipality of Culiacán requested that the Company settle allegedly unpaid real estate property taxes amounting to Ps. 10,917 and attempted to collect this amount through a writ of execution.

~~The Company filed an administrative appeal before the Administrative Court (~~~~Tribunal de lo Contensioso y Administrativo del Estado de Sinaloa~~~~) against this payment request, which is still pending.~~

3.~~San Luis Potosí Airport~~

In December 2014, the municipality of San Luis Potosí requested that the airport settle allegedly unpaid real estate property taxes amounting to Ps. 10,094 and attempted to collect this amount through a writ of execution.

4.~~Zihuatanejo Airport~~

In October 2012, the Treasury Department of the municipality of Zihuatanejo requested that the airport pay Ps. 2,178 in outstanding real estate property taxes, fines and law-enforcement expenses for the periods from the second bimonthly period through the sixth bimonthly period of 2004 and the first bimonthly period through the sixth bimonthly period of 2005.

~~F-40~~

~~The Company filed an administrative appeal against this payment request before the Administrative Court (~~~~Tribunal de lo Contensioso y Administrativo del Estado de Guerrero~~). In October 2012, the Municipal Finance Coordination Office of the municipality of Zihuatanejo once again determined and requested that the airport pay Ps. 2,855 in outstanding real estate property taxes, fines and law-enforcement expenses for the periods from the first bimonthly period of 2007 through the fifth bimonthly period of 2012, together with a fine for its alleged failure to pay real estate property taxes amounting to Ps. 865 for the first bimonthly period of 2007 through the fifth bimonthly period of 2012, together with Ps. 57 for law-enforcement expenses. The Company filed a new administrative appeal with the Administrative Court against this payment request.

~~On April 10, 2015, a judgment was declared in the airport’s favor, but the municipality of Zihuatanejo may appeal this judgment~~.

b.~~Constitutional claim lawsuits involving the requirement to obtain municipal licenses:~~

1.~~Reynosa Airport~~

In October 2014, the municipality of Reynosa issued an inspection order and imposed a suspension of the sales of alcoholic beverages in commercial premises located at the airport as it had not obtained a state license for the sale of alcoholic beverages.

The airport filed a constitutional claim lawsuit against these acts to challenge the closure and unconstitutionality of municipal regulations and the applied state law. The lawsuit was rejected because the District Judge considered that the concessionaire had little basis for filing a constitutional claim lawsuit. Consequently, this ruling was challenged by filing an appeal, which is currently awaiting a ruling. The airport also filed a constitutional claim lawsuit against these closure acts to support the affected leaseholder; this proceeding was accepted, although the constitutional hearing has yet to be scheduled.

As these municipal license requirements do not include economic requirements, the legal risk and impact for the Company are valued in all such legal proceedings. Consequently, the Company has not recorded a provision for these lawsuits because legal precedents involving favorable rulings in this regard also exist.

2.~~Monterrey Airport~~

On November 19, 2013, the municipality of Apodaca issued an inspection order and closed commercial premises located at Monterrey airport (strip mall, gas station and industrial park) because municipal licenses had not been obtained for land use and/or construction and/or building.

The airport filed a constitutional claim lawsuit before the District Court against the closure and unconstitutionality of the applied municipal regulations. The lawsuit was received and a provisional suspension granted to allow the municipal authority to remove the closure notices and permit continued commercial operations.

Even though the municipality invalidated the closure actions on the basis that they had discovered a series of flaws in the actions, and the official notices ordering such closure, it is not barred from enforcing them again. If there is a new official request from the municipality, the lawsuit filed will be expanded and the issue of unconstitutionality will be considered in the lawsuit under way.

In October 2014, District Court issued in the airport’s favor and ordered the municipal authority to annul the challenged acts. The municipal authority filed a motion for review against this ruling before the Mexican Supreme Court, which is currently under review and awaiting a ruling.

~~On February 4, 2015, the Apodaca municipality filed an appeal (~~~~recurso de revisión~~) with the Federal District Circuit Court to exercise its competence to hear and determine the appeal against the October 14, 2014 judgment of the District Court. On March 6, 2015, the First Chamber of the Mexican Supreme Court decided to consider exercising its competence to hear the appeal.

In relation to this lawsuit, in February 2014, the municipality of Apodaca filed a constitutional controversy claim against the Mexican Federal Government based on its authorization of construction works, including the hotel located at Terminal B of the Monterrey airport, which is covered by the writ of injunctive relief. The Mexican Supreme Court agreed to hear the controversy, but denied the request by the municipality of Apodaca to suspend construction activities and operations (such as those relating to the industrial park and hotel). The municipality of Apodaca challenged the interlocutory judgment, but

~~F-41~~

~~received an unfavorable ruling that denied the petition to suspend the work underway at the airport. On May 20, 2014, a hearing was held to submit evidence and present arguments.~~

The airport filed a report requested by the Mexican Supreme Court, together with the underlying writ of injunctive relief filed in 2007 (relating to the closure of Terminal B), as well as the resulting favorable ruling relating to the 2007 writ, as they are related to this issue.

On February 18, 2015, the constitutional controversy claim was decided against the Apodaca municipality. The judgment determined that the constitutional controversy claim was unfounded and declared the federal government’s authorizations to be valid.

c.~~Land ownership conflict~~

1.~~Reynosa Airport~~

The Company filed an action for annulment against the DGAC and the Department of Communications and Transportation with the Tax Court of Tamaulipas in relation to the administrative ruling containing a constructive disapproval regarding the application filed by the plaintiff with the Ministry of Communications and Transportation ~~for~~is already involved. However, in the ~~return~~event that the judgment is not favorable to the Reynosa airport, the economic impact of ~~land of 200,000 hectares (772 square miles). The plaintiff claims that this land is situated within Reynosa airport. This lawsuit’s file number is 13226/13-17-07-04.~~the trial will be borne by the Mexican government. The Reynosa airport has ~~been called~~not recorded any provision in connection to ~~court as~~these claims since it does not expect an ~~interested third party.~~economic impact, even in case of an unfavorable resolution.

b. Amparo trial related to the requirement of municipal licenses:

1. Ciudad Juarez Airport

·

In April 2016, the General Department of Urban Development of the Municipality of Ciudad Juarez notified the entry into force of the Public and Private Parking Lots Operations Regulation, which imposed a series of obligations on the airport as the operator of public parking lots, with the aim of preventing the concessionaire from continuing to provide parking lot services through charge-by-entry.

F-51

Subsequently, on April 19, 2016, municipal authorities executed the closure of the public parking lots in the airport claiming the lack of a license to operate and non-compliance with the corresponding regulations.

An amparo constitutional claim was filed against such acts challenging the closure and claiming the unconstitutionality of the municipal regulation. The trial was admitted and in December 2016 the Court issued a resolution in favor of the airport indicating a lack of municipal authority due to the application of the regulations in an area where only the federal government has jurisdiction.

Currently, there is an appeal pending against the decision that granted amparo protection to the airport.

·

In April 2016, the municipal authority of Ciudad Juarez carried out verification visits at the business premises located at the airport to request the municipal operating licenses, and subsequently ordered the closure of ten businesses in the airport for not having such license.

·

Against such acts, an amparo trial was filed by the Ciudad Juarez airport to challenge the closure and claim the unconstitutionality of the municipal order. The claim was admitted and the court decided in favor of the airport on November 24, 2017, indicating a lack of municipal authority due to the application of municipal regulations in an area where only the federal government has jurisdiction. This decision concluded the trial in favor of the airport.

c. Conflict related with ownership of certain lands

1. Reynosa airport

·

The Company filed a proceeding for annulment against the Mexican Bureau of Civil Aviation and the Ministry of Communications and Transportation with the Administrative Court (Tribunal de lo Contencioso Administrativo del Estado de Tamaulipas) in relation to the administrative ruling containing a constructive disapproval of the application filed by the plaintiff with the Ministry of Communications and Transportation for the return of land of 200,000 hectares (772 square miles) — Trial Number 13226/13-17-07-04. The plaintiff claims that this land is situated within Reynosa airport. The Reynosa airport has been summoned in its capacity as an interested third party.

The ~~principal~~elements of the claim ~~focuses on: i)~~are: (i) the annulment of the administrative act that deprived the plaintiff of its ownership of the real property; ~~ii)~~(ii) the restitution of the ownership rights of which it was deprived due to an irregular administrative act; ~~iii)~~(iii) the immediate return of its ownership of the real property; and ~~iv)~~(iv) the payment of damages. These claims are based on the argument submitted by the plaintiff to the effect that the disputed land is not subject to an expropriation decree.

~~The submission~~On January 24, 2017, the Administrative Court ruled in favor of ~~expert evidence by~~the Ministry of Communications and Transportation, with the Reynosa Airport as an interested third party. In response, the plaintiff ~~is currently pending.~~filed an amparo trial. On December 7, 2017, the court affirmed the lower court’s ruling and decided in favor of the Ministry of Communications and Transportation, with the Reynosa Airport as an interested third party. This decision concluded the trial.

·

Additionally, there are two amparo trials filed by a different plaintiff who claims the dispossession of property owned by the Ministry of Communications and Transportation

F-52

and the declaration of nullity of the administrative act by which the plaintiff was deprived of the possession of the property, the restitution of the possessory rights, the immediate return of the property and compensation for damages.

In December 2016, the Court issued the resolution for both amparo trials, pointing out that the protection of the amparo does not apply since the lands in conflict were expropriated in favor of the Mexican Government. This decision concluded the trial.

~~Given~~2. Ciudad Juarez airport

·

On November 15, 1995, parties purporting to be former owners of land comprising a portion of the Ciudad Juárez airport initiated legal proceedings against the airport to reclaim the land (240 hectares), alleging that it was improperly transferred to the Mexican government. As an alternative to recovery of this land, the claimants also sought monetary damages of U.S.$120.0 million.

Within the ~~Mexican Federal Government is the principal defendant in this case, if an unfavorable ruling is issued,~~trial, the Company ~~believes it will be liable for~~challenged the ~~payment~~claims of the resulting economic effects detailed in the concession title. The Company has not recorded a provision for this lawsuit because it does not consider the issuance of an unfavorable ruling to be probable.

2.~~Ciudad Juárez Airport~~

~~A lawsuit against the airport of Ciudad Juárez, filed on November 15, 1995, seeking damages for a plot (240 hectares or 0.93 square miles) where the airport is located,~~claimant based on the argument that this land was incorrectly transferred to the Mexican Government. Plaintiff seeks payment of U.S.$120,000,000 because the land cannot be recovered due to its use as the site for an airport.

~~The Company has challenged the plaintiff’s claims by arguing the~~ legitimacy of ~~its~~the possession ~~based on~~derived from the ~~concession title~~Concession Agreement granted by the Ministry of Communications and Transportation.

~~Furthermore, the~~The Ministry of Communications and Transportation was called to ~~appear~~trial in ~~court to defend~~defense of the interests of the Mexican ~~Federal Government. As a result~~government.

On July 8, 2016, the local court in Ciudad Juárez ruled that the claims against the Ciudad Juárez airport are inadmissible, and on October 21, 2016, the claimants filed an appeal before the Appellate Court in Chihuahua against the court’s determination. On July 31, 2017, the First Civil Court overturned the lower court’s decision and ruled in favor of the ~~appearance by~~plaintiffs, requiring the ~~Ministry~~Mexican government to pay restitution to the plaintiffs for their loss of ~~Communications~~property and ~~Transportation~~ in ~~2011, it was determined that~~accordance with the ~~lawsuit could be heard at~~lawsuit. The Mexican government filed an amparo trial to appeal the ~~federal level. However, after~~decision. This case is currently pending. If the Federal Court denied that it was competent to hear the lawsuit, a conflict arose which has been resolved by the Circuit Court of Appeals, through a ruling issued on January 13, 2013 that the judge who must hear the lawsuit is at the state or local level, rather than federal. The lawsuit is still under way at this time.

Asresolution of the date of the financial statements the contingency remains in effect due to the continuing lawsuit because no final ruling has been issued to resolve such proceeding, and the Ministry of Communications and Transportation has already been called to appear in court. If the ruling goes againsttrial is unfavorable for the Company, ~~it believes that~~the Mexican Government will be responsible for the economic ~~effects of the lawsuit will be the obligation of the Mexican Federal Government,~~impact, as ~~established~~set out in the Concession ~~Title and given that the title of the land is held with the Mexican Government and not with the Ciudad Juarez airport, for which reason the~~Agreement. The Company has not recorded any provision regarding this trial, since it does not expect an economic impact, even in ~~this regard.~~

d.~~Other proceedings~~

1.~~Acapulco Airport~~

~~In December 2011, the Local Tax Audit Administration~~case of ~~the Tax Administration Service of Acapulco conducted~~ an ~~audit of the Acapulco airport, after which it issued a new ruling and assessed an unpaid tax~~unfavorable resolution.

~~F-42~~d. Conflict related to the purchase-sale of land

Monterrey airport

On January 12, 2012, a third party filed a claim that it was the owner of a property previously acquired by the Monterrey airport. The third party is seeking a declaration that the documents of sale to the Monterrey airport are null and void based on the absence of a sale deed for the property and the restitution of the property to the third party, together with the corresponding improvements and property rights.

On August 27, 2015, a new claim was filed against the Monterrey airport in connection with the ownership of land with an approximate area of 96 hectares (107,639 square feet) acquired in 2008. The claim was filed by Banco Mercantil del Norte, S.A., acting as trustee of a transnational domain trust, arguing that the trust’s settlors are the rightful owners of the property. The claim was filed against the Monterrey airport but it was requested to call to trial the seller of the property as interested third party. The case is currently pending.

The contingency is not quantified in the demand. However, if an unfavorable verdict is issued, the economic impact of the trial would be assumed by the seller of the land. The Company has not

F-53

recorded any provision relating to this claim, as it is not probable that an outflow of resources embodying economic benefits will be required to settle this obligation.

liability Ps. 27,876 for the year 2006, as the base taxable profit for the distribution of profits and the application of 10% of the amount for profit-sharing. A motion for reconsideration was filed against this ruling, which confirmed the challenged ruling and assessed a new unpaid tax liability for ISR and additional government charges of Ps. 15,946, as well as profit-sharing of Ps. 2,787. The Company filed an action for annulment against this latest ruling with the Federal Tax Court, which issued a favorable ruling to the concessionaire.

In compliance with the ruling issued by the Regional Court of the Pacific Zone, the Tax Administration Service once again issued the tax liability of Ps. 9,848, the notification of which was received on December 9, 2014. This tax liability was issued for 2006 income taxes, surcharges, fines and restatements. The tax authority also determined additional payable employee statutory profit-sharing amounts of Ps. 2,015, in conformity with the ruling issued on June 17, 2014 by the Regional Court of the Pacific Zone and the Federal Tax Court when ruling on the action for annulment. This tax liability will once again be challenged.

~~As a new challenge is currently being prepared, the Company is unable to anticipate the possible outcome. However, a favorable ruling was already issued in this regard by the Federal Tax Court.~~

21.~~Risk~~ Financial risk management

a.Significant accounting policies

The details of the significant accounting policies and adopted methods (including recognition, valuation and basis of recognition of related income and expenses) for each class of financial asset, financial liability and equity instrument is disclosed in ~~Note~~note 4.

b.Categories of financial instruments and risk management policies

The principal categories of financial instruments are:

December 31,

2014

2013

Financial assets

Risk classification

Cash and cash equivalents

Credit and interest rate

Ps.
2,808,149

Ps.
1,534,006

Receivables

Credit and exchange rate

319,890

304,769

December 31,

Risk classification

2014

2013

Financial liabilities

Short-term debt

Interest rate, exchange rate and liquidity

Ps.
-

Ps.
99,421

Long-term debt

Interest rate, exchange rate and liquidity

4,724,401

3,004,114

Trade accounts payable (1)

Liquidity

248,002

219,082

Accrued expenses (2)

Liquidity

187,603

165,390

Accounts payable to related parties

Liquidity

72,111

107,440


		December 31,
Financial assets	Risk classification	2017		2016		2015
Cash and cash equivalents and other investments held to maturity	Credit and interest rate	Ps.	2,382,345	Ps.	3,005,792	Ps.	2,665,641
Receivables, net	Credit and exchange rate		630,757		714,130		390,785

~~(1) Does not include the payments of employee statutory profit-sharing amounts, which were Ps. 9,554 and Ps. 7,102 as of December 31, 2014 and 2013, respectively.~~

~~(2) Does not include taxes payable, which amounted to Ps. 81,625 and Ps. 53,622 as of December 31, 2014 and 2013,~~


		December 31,
Financial liabilities	Risk classification	2017		2016		2015
Short-term and long-term debt	Interest rate, exchange rate and liquidity	Ps.	4,644,387	Ps.	4,707,303	Ps.	4,729,388
Trade accounts payable(1)	Liquidity		249,507		252,831		243,867
Accrued interest	Liquidity		69,125		43,254		42,425
Accounts payable to related parties	Liquidity		130,022		140,328		67,521

(1)

Does not include the payments of employee statutory profit-sharing amounts, which were Ps.6,475, Ps. 9,242 and Ps.9,491 as of December 31, 2017, 2016 and 2015, respectively.

Based on the nature of its activities, the Company is exposed to different financial risks, mainly as a result of its ordinary business activities and its debt contracts entered into to finance its operating activities. The Company’s corporate treasury department provides services to the operating units to coordinate the entry into domestic and international markets and monitors and manages the financial risks relating to the operations of the Company. These risks ~~includes~~include market risk (interest rate risk and foreign currency risk), credit risk and liquidity risk.

Periodically, the Company’s management assesses risk exposure and reviews the alternatives for managing those risks, supervising and managing the financial risks through internal risk reports which

~~F-43~~

analyze exposures by degree and magnitude of risks. The Board of Directors sets and monitors policies and procedures to measure and manage the risks to which the Company is exposed, which are described below.

c.Market risk

Interest rate risk management –— This risk principally stems from changes in the future cash flows of debt entered into at variable interest rates (or with short-term maturity and presumable renewal) as a result of fluctuations in the market interest rates. The purpose of managing this risk is to lessen the impact in the cost of the debt due to fluctuations in such interest rates.

F-54

The risk is ~~also~~ managed by the Company through maintaining an appropriate combination of fixed rate loans and variable rate ~~loans~~.loans. As of December 31, ~~2014,~~2017, the Company had an approximate ~~Ps. 4,742,032~~Ps.4,644,387 in outstanding long-term debt, of which ~~94.9% has~~96.9% had a fixed interest rate and ~~5.1%~~3.1% a variable interest rate. As of December 31, ~~2013,~~2016, the Company had Ps.4,707,303 in outstanding long-term debt, of which 95.6% had a fixed interest rate and 4.4% a variable interest rate. As of December 31, 2015, the Company had an approximate ~~Ps. 3,013,563~~Ps.4,729,388 in outstanding long-term debt, of which ~~49.8% has~~95.1% had a fixed interest rate and ~~50.2%,~~4.9% a variable interest rate.

The contracted credit lines have interest payments at a variable rate, which exposes the Company to interest rate risk as a result of fluctuations in market interest rates. The risk exposure is mainly caused by the variations that could occur in the ~~28-day TIIE rate and the three -month~~three-month LIBOR ~~rate~~.rate.

The Company manages this risk by monitoring constantly the changes of such interest rates. In recent years, the ~~28-day TIIE and three -month~~three-month LIBOR ~~have decreased.~~has increased. The ~~28-day TIIE was at its historical low in September 27, 2014 (3.274%) while the three -month~~three-month LIBOR was at its ~~historic low in May 1, 2014 (0.2229%~~lowest level on January 3, 2017 (0.99872%) and its highest level on December 28, 2017 (1.69465%). Therefore, the Company has not entered into hedging instruments to hedge the risk of a rise in such interest rates. In the future, if the behavior of the referenced rates established in its debt instruments changes and trends ~~upwards,~~upward, the Company may decide to enter into hedging instruments.

Sensitivity analysis for interest rates –— The following sensitivity analysis is based on the assumption of an unfavorable movement of basis points in interest rates, in the indicated amounts applicable to each category of floating rate financial liabilities. The Company determines its sensitivity by applying the hypothetical interest rate (reference rate increased at the rate specified plus surcharge) for each category of financial liabilities accruing interest at a variable rate.

As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, the Company maintained long-term debt, including the current portion, which accrue interest at a variable rate, of ~~Ps. 242,032~~Ps.144,387, Ps.207,303 and ~~Ps. 1,513,563,~~Ps.229,388, respectively (see ~~Notes~~notes 14 and 15, which disclose the outstanding balances and interest rates of the Company’s financial instruments). A hypothetical, instantaneous and unfavorable 10% change in the three-month LIBOR interest rate ~~TIIE 28-day and three-month LIBOR~~ applicable to the outstanding debt with ~~floating~~variable rates would have resulted in an additional financing expense of approximately ~~Ps. 3,220, Ps. 14,384~~Ps.244, Ps.166 and ~~Ps. 9,518~~Ps.74 for ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively. The increase was calculated for U.S. dollar debt based on the year-end exchange rate of each year ~~(Ps. 14,7348, Ps. 13,0652~~(Ps.19.7354, Ps.20.664, and ~~Ps. 12,8609~~Ps.17.3398 for ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively).

Exchange risk management –— The Company performs transactions denominated in foreign currency; consequently, it is exposed to exchange rate risks, which are managed within the parameters of established and approved policies. The main risk related to the exchange rate involves changes in the value of the Mexican peso against the U.S. dollar.

A severe devaluation or appreciation of the Mexican peso could also result in an interruption in the international currency markets and could limit the ability to transfer or convert pesos to U.S. dollars and other currencies in order to make timely payments of interest and principal on the related obligations expressed in U.S. dollars or in other currencies. While the Mexican Government does not currently restrict, and since 1982 has not restricted, the right or ability of individuals or corporations Mexican or foreign to convert pesos into U.S. dollars or other currencies persons and to transfer out of Mexico, the Mexican Government could institute restrictive exchange control policies in the future. There can be no assurance that the Bank of Mexico will maintain its current policy on ~~weight.~~the Mexican peso. The fluctuation of the currency may have an adverse effect on the financial position of the Company, results of operations and cash flows in future periods.

Historically, a ~~significant~~ portion of the revenues generated by the Company’s airports (mainly derived from TUA charged to international passengers) are ~~denominated in~~ ~~U.S. dollars or~~ linked to U.S. dollars, although such revenues are collected in pesos based on the average exchange rate of the previous month. Of consolidated revenues (excluding

F-55

construction services revenues) of the Company,

~~F-44~~

~~13.3%~~ 15.88%, ~~13.46%~~15.57% and ~~14.04%~~15.27% were from TUA of international passengers in ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively. Substantially all other revenues of the Company are denominated in pesos. Based on an appreciation of 10% of the peso against the U.S. dollar, the Company believes that its revenues would have decreased by ~~Ps. 45,524, Ps. 41.282~~Ps.92,154, Ps.81,052, and ~~Ps. 39,595~~Ps.63,283 in ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively.

An appreciation of the Mexican peso against the U.S. dollar would reduce the U.S. dollar-denominated revenues and the Company’s obligations under U.S. dollar-denominated debt when expressed in pesos, whereas a depreciation of the peso against the U.S. dollar would increase the Company’s U.S. dollar-denominated revenues and obligations under debt agreements when expressed in pesos.

For the year ended December 31, ~~2014,~~2017, the peso ~~had depreciated~~appreciated against the U.S. dollar by ~~13%~~4.49%, relative to the exchange rates prevailing at the end of ~~2013.~~2016.

Foreign currency sensitivity analysis - The following sensitivity analyses are based on an instantaneous and unfavorable change in exchange rates which affect the foreign currencies in which the Company’s debt is expressed. These sensitivity analyses cover all the assets and liabilities denominated in foreign currency. Sensitivity is determined by applying a hypothetical exchange rate change to those items, including the outstanding debt expressed in foreign currency.

As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, a hypothetical, instantaneous and unfavorable change of 10% in the exchange rate of the peso against the U.S. dollar, applicable in the Company’s ~~liability~~asset (liability) positions net of U.S.$ ~~15,362~~25,370, U.S.$2,407 and U.S.$ ~~18,605~~14,220 (amounts in thousands) would have resulted in an estimated exchange (gain) loss ~~estimated~~ of approximately Ps. ~~22,636~~(50,069), Ps. 4,974 and ~~Ps. 24,308,~~Ps.24,657 as of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, respectively.

The carrying values of monetary assets and liabilities denominated in foreign currencies at the end of the reporting period are as follows (amounts in thousands):


	Liabilities				Assets				Liabilities						Assets
	December 31,				December 31,				December 31,						December 31,
Currency	2014		2013		2014		2013		2017		2016		2015		2017		2016		2015
U.S. dollars	U.S.$	(19,272)	U.S.$	(22,709)	U.S.$	3,909	U.S.$	4,104	U.S.$	(15,631)	U.S.$	(14,457)	U.S.$	(14,389)	U.S.$	41,001	U.S.$	12,050	U.S.$	169

The transactions in thousands of U.S. dollars for the years ended December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, are as follows:

	Year ended December 31,
	2014		2013		December 31,
					2017		2016		2015
Technical assistance	U.S.$	5,596	U.S.$	5,101	U.S.$	6,863	U.S.$	5,707	U.S.$	5,641
Insurance	2,179		2,199			2,295		1,481		2,651
Purchase of machinery and maintenance	13,087		5,398			16,562		6,886		7,506
Software	1,200		-			1,722		1,728		1,095
Professional services, fees and subscriptions	1,183		2,614			968		1,161		607
Others	3,844		3,503

Other						6,437		7,660		5,387

Pertinent exchange rate information at the date of the consolidated statements of financial position is as follows:

FIX

December 31,

December 31, 2012

December 31,

2014

2013

Purchase

Sale

2017

2016

2015

U.S. dollar exchange rate

Interbank

Ps.

14.7348

Ps.

13.0652

Ps.

12.8409

Ps.

12.8609

Ps.

19.7354

Ps.

20.664

Ps.

17.3398

F-56

As of April 27, ~~2015,~~2018, the issuance date of the consolidated financial statements, the ~~FIX~~ Interbank exchange rate was Ps. ~~15.33213.~~18.8644.

d.Credit ~~Risk~~risk

Credit risk management – —Credit risk refers to the risk whereby one of the parties defaults on its contractual obligations, thereby generating a financial loss for the Company. The objective of this risk management is to reduce its impact by reviewing the solvency of the Company’s potential customers.

~~F-45~~

The creditworthiness of uncollected amounts is periodically evaluated estimates of recoverable amounts are reviewed, resulting in reserves for those amounts whose ~~recover~~recovery is considered doubtful, with corresponding entries to the statements of income and other comprehensive income in the period of review. The credit risk has historically been very limited.

The Company’s maximum credit risk exposure is presented in the amounts included in the table in subsection b) as well as within the past due but not impaired analysis of accounts receivable, included in ~~Note~~note 7. The Company holds bonds and deposits that mitigate the credit risk, being the most relevant the guarantee deposits registered as a liability in the consolidated statements of financial position.

The Company adopted a policy to only carry out transactions with solvent parties and obtain sufficient collateral where appropriate as a means of mitigating the risk of financial loss due to possible default. The Company trades only with entities that have the best possible risk rating. The credit exposure is reviewed and approved by senior management committees of the Company. The credit risk on cash and cash equivalents is limited because the counterparties are banks with high credit ratings assigned by credit rating agencies. Financial instruments that potentially expose the Company to credit risk consist mainly of accounts receivable.

The customers balance is primarily comprised of TUA collected by airlines for each passenger traveling using air terminals and subsequently delivered to the Company. The Company has established three credit options: 30, 45 and 60 days. These days are granted depending on the guarantee that the customer can provide. In case of default, customers will be subject to penalty interests and/or a legal collection process. For both credit customers and cash customers, there are established guarantees, which may include the following: trust, deposit, letter of credit, liquid credit, mortgage and collateral.

As of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, the Company had ~~Ps. 184,579~~Ps.38,223, Ps.67,482 and Ps. ~~185,152~~67,733 as an allowance for doubtful accounts, principally related with accounts receivables from the bankruptcy filing of Grupo Mexicana de Aviación for Ps. 145,845. The failure of not recovering the money from this type of claim would not have a material adverse impact on the liquidity and financial condition of the Company.receivable.

F-57

e.Liquidity risk

Management of liquidity risk– — This risk is generated by temporary differences between the funding required by the Company to fulfill business investment commitments, debt maturities, current asset requirements, etc., and the origin of funds generated by the regular activities of the Company and different types of bank financing. Also, different economic or industry factors, such as financial crises or suspension of operations of any airline could affect the cash flow of the Company. The objective of the Company in the management of this risk is to maintain a balance between the flexibility, period and conditions of credit facilities contracted to manage short, medium and long-term funding requirements. In this regard, the Company’s use of project financing and debt with limited resources described in ~~Notes~~note 14 ~~and 15~~ and the short-term financing for working capital of current assets are significant. The Executive Committee of the Company is ultimately responsible for liquidity management. This Committee has established an appropriate framework for liquidity management guidelines. The Company manages its liquidity risk by maintaining reserves, adequate financial facilities and adequate loans, while constantly monitoring projected and actual cash flows and reconciling the maturity profiles of financial assets and liabilities. Additionally, as mentioned in ~~Note~~note 14, the Company has available credit lines for working capital.

The following table shows the remaining contractual maturities of the Company’s financial liabilities with agreed repayment periods. This table has been prepared based on the projected non-discounted cash flows of financial liabilities at the date on which the Company will make payments. The table includes projected interest cash flows and capital repayments of financial debt included in the consolidated statement of financial position. To the extent that interest is accrued at variable rates, the non-discounted amount is derived from interest rate curves at the end of the reporting period. Contractual maturity is based on the earliest date when the Company must make the respective payment.


							2025 and
As of December 31, 2017	2018		2019-2021		2022-2024		subsequently		Total
Long-term debt	Ps.	50,852	Ps.	3,093,535	Ps.	1,500,000	Ps.	—	Ps.	4,644,387
Interest(1)		310,710		806,984		118,078		—		1,235,772
Trade accounts payable		249,507		—		—		—		249,507
Accrued expenses		69,125		—		—		—		69,125
Accounts payable with related parties		130,022		—		—		—		130,022
Total	Ps.	810,216	Ps.	3,900,519	Ps.	1,618,078	Ps.	—	Ps.	6,328,813

~~F-46~~


							2024 and
To December 31, 2016	2017		2018-2020		2021-2023		subsequently		Total
Long-term debt	Ps.	56,122	Ps.	137,166	Ps.	3,014,015	Ps.	1,500,000	Ps.	4,707,303
Interest(1)		313,145		929,050		287,120		19,680		1,548,995
Trade accounts payable		252,831		—		—		—		252,831
Accrued expenses		43,254		—		—		—		43,254
Accounts payable with related parties		140,328		—		—		—		140,328
Total	Ps.	805,680	Ps.	1,066,216	Ps.	3,301,135	Ps.	1,519,680	Ps.	6,692,711

F-58


							2023 and
As of December 31, 2015	2016		2017-2019		2020-2022		subsequently		Total
Long-term debt	Ps.	55,433	Ps.	128,337	Ps.	3,045,618	Ps.	1,500,000	Ps.	4,729,388
Interest(1)		312,296		931,603		595,794		19,680		1,859,373
Trade accounts payable		243,867		—		—		—		243,867
Accrued expenses		42,425		—		—		—		42,425
Accounts payable with related parties		67,521		—		—		—		67,521
Total	Ps.	721,542	Ps.	1,059,940	Ps.	3,641,412	Ps.	1,519,680	Ps.	6,942,574

As of December 31, 2014

2015

2016-2018

2019-2021

2022 onward

Total

Long-term debt

Ps.
47,105

Ps.
125,092

Ps.
3,069,835

Ps.
1,500,000

Ps.
4,742,032

Interest(1)

311,448

934,845

806,183

118,078

2,170,554

Trade accounts payable

248,002

-

-

-

248,002

Accrued expenses

187,603

-

-

-

187,603

Accounts payable with related parties

72,111

-

-

-

72,111

Total

Ps.
866,269

Ps.
1,059,937

Ps.
3,876,018

Ps.
1,618,078

Ps.
7,420,302

As of December 31,2013

2014

2015-2017

2018-2020

2021 onwards

Total

Short-term debt

Ps.
99,421

Ps.
-

Ps.
-

-

Ps.
99,421

Long-term debt

33,588

1,394,560

76,536

1,508,879

3,013,563

Interest(1)

163,291

424,250

302,970

216,603

1,107,114

Trade accounts payable

219,082

-

-

-

219,082

Accrued expenses

165,390

-

-

-

165,390

Accounts payable with related parties

107,440

-

-

-

107,440

Total

Ps.
788,212

Ps.
1,818,810

Ps.
379,506

Ps.
1,725,482

Ps.
4,712,010

~~(1)The projected interest is determined based on TIIE and LIBOR and assuming an exchange rate of Ps. 14.7348 and Ps. 13.0652 (as of December 31, 2014 and 2013, respectively) per U.S.$ 1.00.~~

(1)

The projected interest is determined based on LIBOR and assuming an exchange rate of Ps.19.7354, Ps.20.664 and Ps.17.3398 (as of December 31, 2017, 2016 and 2015, respectively) per U.S. $1.00.

The amounts forming part of the debt contracted with credit institutions include fixed and variable rate instruments. Variable-rate financial liabilities are subject to change when variable interest rates differ from the estimated interest rates determined at the end of the reporting ~~period.~~period based on their market value.

The Company expects to meet its obligations under its liabilities with its operational cash flows and resources received from the maturity of its financial assets. Additionally, the Company has access to lines of credit with certain financial ~~institutions~~institutions.

f.Financial ~~Instruments~~instruments at fair value

This note provides information about how the Company determines fair values of various financial assets and financial liabilities.

Except as detailed in the following table, the Company considers that the carrying amounts of financial assets and financial liabilities recognized in the consolidated financial statements approximate their fair values due to their short-term maturities.

December 31, 2014

December 31, 2013

Financial liabilities:

Carrying amount

Fair value

Financial liabilities:

Carrying amount

Long-term debt(1)

Ps.
4,742,032

Ps.
4,663,611

Ps.
3,013,563

Ps.
3,068,455

Hierarchy of fair value as of December 31, 2014

Financial liabilities:

Level 1

Level 2

Level 3

Total

Long-term debt(1)

Ps.
-

Ps.
4,663,611

Ps.
-

Ps.
4,663,611

Hierarchy of fair value as of December 31, 2013

Financial liabilities:

Level 1

Level 2

Level 3

Total

Long-term debt(1)

Ps.
-

Ps.
3,068,455

Ps.
-

Ps.
3,068,455

Financial liabilities

Long-term debt

December 31, 2017

December 31, 2016

December 31, 2015

Book value

Fair value

Book value

Fair value

Book value

Fair value

Ps.

4,644,387

Ps.

4,465,684

Ps.

4,707,303

Ps.

4,489,119

Ps.

4,729,388

Ps.

4,655,234

~~(1)~~

Hierarchy of fair value as of December 31, 2017

Level 1

Level 2

Level 3

Total

Financial liabilities:

Long-term debt(1)

Ps.

4,246,875

Ps.

218,809

Ps.

—

Ps.

4,465,684

Hierarchy of fair value as of December 31, 2016

Level 1

Level 2

Level 3

Total

Financial liabilities:

Long-term debt(1)

Ps.

4,204,695

Ps.

284,424

Ps.

—

Ps.

4,489,119

F-59

Hierarchy of fair value as of December 31, 2015

Level 1

Level 2

Level 3

Total

Financial liabilities:

Long-term debt(1)

Ps.

4,384,607

Ps.

270,627

Ps.

—

Ps.

4,655,234

(1)

The fair values of the financial assets and financial liabilities included in the level 2 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

22. Shareholders’ equity

~~F-47~~a.

~~22.~~~~Shareholders’ equity~~

a.~~Equity risk~~Capital management

The objectives of the Company with respect to capital management ~~of equity risk~~ is to maintain an optimum financial-net worth structure, to reduce capital costs and safeguard its capacity to continue its operations with solid indebtedness ratios.

The Company is not subject to any externally imposed requirements for managing capital.

The Company manages its capital to ensure its ability to maximize the return on investment of its shareholders through three primary strategic objectives, as follows:

1.Cost and expense optimization – Indicators of this objective are evaluated, excluding ~~revenues from construction services,~~ construction costs and the maintenance provision, as such amounts do not affect cash flows. This indicator allows management to assess the ratio of costs and expenses to revenues.

2.Increased cash flows and optimization of the consolidated financial position.

3.Revenue growth –— For this purpose, the Company monitors indicators associated with aeronautical and non-aeronautical revenues. On a monthly basis, the Company’s management provides quarterly updates to the Strategic Planning Committee to Empresas ICA, who ~~provide~~provides oversight and ~~review~~reviews compliance with this objective.

The Strategic Planning Committee assesses and reviews these objectives on a quarterly basis. As part of the review, this Committee considers the cost of capital and risks associated with the Company’s strategic objectives.

b.As of December 31, ~~2014~~2017, there were 49,766,000 series BB shares and ~~2013, the total number of Class I approved shares was 400,000,000, of which 58,800,000, correspond to Series “BB” and 341,200,000 to Series “B”.~~344,004,973 series B shares.

c. As of December 31, 2016 and 2015, there were 49,766,000 series BB shares and 350,234,000 series B shares.

d. Subscribed and paid-in capital stock as of December 31, ~~2014~~2017, 2016 and ~~2013,~~2015, is comprised of ordinary, nominal shares, composed as follows:

December 31, 2014

Shares

Common stock

Fixed Capital:

Series B, Class I

341,200,000

Ps.
1,287,494

Series BB, Class I

58,800,000

220,952

Shares in treasury

(4,620,150
)

(17,423
)

395,379,850

Ps.
1,491,023

December 31, 2013

Shares

Common Stock

Fixed Capital:

Series B, Class I

341,200,000

Ps.
2,311,094

Series BB, Class I

58,800,000

397,352

Shares in treasury

(1,440,783
)

(9,755
)

398,559,217

Ps.
2,698,691


	December 31, 2017
	Number of Shares	Contributed Capital
Fixed capital:
Series B Class I	344,004,973	Ps.	265,269
Series BB Class I	49,766,000		38,375
Treasury Series B Class I shares	(324,507)		(250)
	393,446,466	Ps.	303,394

F-60


	December 31, 2016
	Number of Shares	Contributed Capital
Fixed capital:
Series B Class I	350,234,000	Ps.	270,071
Series BB Class I	49,766,000		38,375
Treasury Series B Class I shares	(6,229,027)		(4,802)
	393,770,973	Ps.	303,644


	December 31, 2015
	Number of Shares	Contributed Capital
Fixed capital:
Series B Class I	350,234,000	Ps.	270,071
Series BB Class I	49,766,000		38,375
Treasury Series B Class I shares	(7,843,623)		(6,048)
	392,156,377	Ps.	302,398

d.e. At the Ordinary Shareholders’ Meetings held on April ~~10, 2014~~28, 2017, April 14, 2016 and April ~~16, 2013, the approval of~~23, 2015, the results for the years ended December 31, ~~2013~~2016, 2015 and ~~2012,~~2014, respectively, were ~~approved.~~approved.

e.f. At the Extraordinary General Shareholders’ Meeting held on May 31, 2017, the cancellation of 6,229,027 Series B Treasury shares, representing the minimum fixed portion of the Company’s capital stock was approved. This cancellation does not result in a refund in favor of the shareholders.

g. In 2017, 2016 and 2015, (324,507), 1,614,596, and (3,223,473) shares were (repurchased) issued by the Company for Ps.(34,234) Ps.184,370, and Ps.(244,293), of nominal value, respectively. As of December 31, ~~2014,~~2017, 2016 and 2015, the market price per share was Ps. 101.67, Ps. 89.38 and Ps.83.61, respectively. As of December 31, 2017, the Company had in ~~its~~ treasury repurchased shares in the amount of Ps. ~~247,522.~~34,234. Such amount is represented by ~~4,620,150 common~~324,507 Series B Class I shares. In 2014, 3,179,367 shares were repurchased, which reduced the common stock and the share repurchase reserve by Ps. 7,668 and Ps. 132,326, respectively. The weighted average outstanding shares is impacted according to the dates in

~~F-48~~

~~which the Company’s shares were repurchased. As of December 31, 2014, the market price per share of the Company was Ps. 67.83.~~

f.h. At the ~~Extraordinary~~Ordinary General Shareholders’ Meeting held on April ~~10, 2014,~~28, 2017 the shareholders approved the following: (1) the payment of a ~~capital reduction by reimbursement~~cash dividend of Ps. 1,600 million, to ~~shareholders~~be paid in a single installment of Ps. 4.00s per share (the amount effectively paid was Ps. 1,575,083), corresponding to the shares outstanding less the treasury stock at the payment date (May 16, 2017); (2) a share repurchase reserve of Ps.1,500 million and authorized use of up to that amount to repurchase Series B shares during 2018 and until the next annual meeting approves the 2017 result, for which an amount ~~equal~~of Ps.116,876 was transferred from accumulated results to the share repurchase reserve for completion of the amount approved.

i.

At the Ordinary Shareholders’ Meeting held on April 14, 2016, the shareholders approved the following: (1) the payment of a cash dividend of Ps. 1,400 million, to be paid in a single installment of Ps. 3.50 per share (the amount effectively paid was Ps. 1,371,641), corresponding to the shares outstanding less the treasury stock at the payment date (April 29, 2016); (2) a share repurchase reserve of Ps.1,200 million and authorized use of up to that amount to repurchase shares during 2016 and until the next annual meeting approves the 2016 result, and (3) a decrease in the legal reserve fund of Ps. 176,530, an amount in which the reserve exceeds 20% of the share capital and transfer it to results from previous years.

j.At the Ordinary and Extraordinary Shareholders’ Meetings held on April 23, 2015, the shareholders approved the following: (1) an increase in the Company’s legal reserve fund of Ps. 17,704, and (2) a decrease in the fixed portion of the Company’s capital stock in the amount of Ps. 1,200,000, to be conducted without decreasing the number of shares, by reimbursing the shareholders in the amount of ~~authorized capital, by repayment to shareholders at~~ Ps. ~~3.0~~3.00 per share. The amount paid to shareholders was Ps. ~~1,188,581;~~1,184,834 and the remaining Ps. ~~11.419~~

F-61

15,166 corresponds to shares in treasury.

g.~~The Ordinary Shareholders’ Meeting held on April 10, 2014, increased legal reserves by Ps. 16.039 was approved.~~

h.~~At the Extraordinary Shareholders’ Meeting held on April 16, 2013,~~ In addition, the shareholders approved a ~~capital reduction by reimbursement to shareholders in an amount equal to Ps. 1,200,0000 without decreasing the number of shares of authorized~~ share ~~capital, by reimbursement to shareholders at Ps. 3.00 per share. In addition a decrease to the~~ repurchase reserve of ~~Ps. 4,774 was approved.~~

i.~~At the Ordinary Shareholders’ Meeting held on April 16, 2013, the shareholders approved an increase in the reserve fund for the purchase of Company shares~~ up to Ps. ~~400,000, authorizing~~241,543 and the ~~availability to repurchase shares~~use of ~~the Company up to that maximum amount.~~

j.~~During 2014 and 2013, the Company repurchased 3,179,367 and 568,310 treasury shares, respectively,~~such funds for ~~a value of Ps. 154,498 and Ps. 24,608 (nominal value), respectively.~~share repurchases.

k.Shareholders’ equity, except restated paid-in capital and ~~tax retained~~tax-retained earnings, will be income tax on dividends by the Company to the effect upon the distribution rate. Any tax paid on such distribution may be credited against income tax for the year in which the tax on dividends and the following two years, against the tax for the year and interim payments thereof is paid.

l.~~Retained~~l.Retained earnings include the statutory legal reserve. Under the Mexican General ~~Corporate~~Corporations Law, at least 5% of the year’s net profits must be placed in a legal reserve until the reserve equals an amount representing 20% of capital stock at par value. The legal reserve may be capitalized but may not be distributed unless the Company is dissolved and must be replenished if it is reduced for any reason. As of December 31, ~~2014~~2017 and ~~2013,~~2016, the amount not available for distribution totaled ~~Ps. 220,515~~Ps.61,689, in both years, and ~~Ps. 204,476, respectively.~~in 2015 Ps.238,219.

23.Accumulated other comprehensive income (loss)

Accumulated other comprehensive income (loss) is as follows:

Labor obligations

Amount

Taxes

Total

Balance January 1, 2012

Ps.
-

Ps.
-

Ps.
-

Movements of the year

(11,313
)

3,390

(7,923
)

Balance December 31, 2012

Ps.
(11,313
)
Ps.
3,390

Ps.
(7,923
)
Movements of the year

(2,851
)

843

(2,008
)

Balance December 31, 2013

(14,164
)
4,233

(9,931
)
Movements of the year

437

(131
)

306

Balance December 31, 2014

Ps.
(13,727
)

Ps.
4,102

Ps.
(9,625
)


	Labor obligations
	Amount		Deferred taxes		Total
Balance as of January 1, 2015	Ps.	(13,727)	Ps.	4,102	Ps.	(9,625)
Movements of the year		(1,286)		386		(900)
Balance as of December 31, 2015		(15,013)		4,488		(10,525)
Movements of the year		3,533		(1,060)		2,473
Balance as of December 31, 2016		(11,480)		3,428		(8,052)
Movements of the year		(4,199)		1,260		(2,939)
Balance as of December 31, 2017	Ps.	(15,679)	Ps.	4,688	Ps.	(10,991)

Other comprehensive ~~income~~loss is comprised of the effects of labor obligations.

24.Other income

Other ~~expense (income),~~income, net, consists of the following:


	Year ended December 31,
	2017		2016		2015
Gain on sale of equipment	Ps.	(1,340)	Ps.	(22,250)	Ps.	(140)
Insurance recovery		(40)		—		(6,790)
	Ps.	(1,380)	Ps.	(22,250)	Ps.	(6,930)

~~F-49~~

Year ended December 31,

2014

2013

2012

(Gain) loss on sale of equipment

Ps.
1,651

Ps.
(30,967
)
Ps.
1,311

Loss from damage to improvements to concessioned assets and equipment

-

44,172

-

Insurance recovery

(19,024
)
(51,561
)
-

Other

3,719

(11,426
)

(11,235
)

Ps.
(13,654
)

Ps.
(49,782
)

Ps.
(9,924
)

25.Related party balances and transactions

a.

The repayments for construction to the related parties are as follows:


	December 31,
	2017		2016		2015
ICA Constructora de Infraestructura, S.A. de C.V. (2)	Ps.	44,254	Ps.	—	Ps.	—
ICA Constructora, S.A. de C.V. (2)		44,264		—		—
Actica Sistemas, S.A. de C.V. (2)		5,887		—		—
Ingenieros Civiles Asociados, S.A. de C.V. (2)		—		37,866		1,110
VCD Construcción y Desarrollo, S.A.P.I. de C. V. (2)		3,612		8,166		—
	Ps.	98,017	Ps.	46,032	Ps.	1,110

F-62

a.b.The accounts payable with related parties are as follows:

December 31,

2014

2013

Payables:

Empresas ICA(1)

Ps.
-

Ps.
32,488

Servicios de Tecnología Aeroportuaria, S. A. de C. V. (“SETA”)(2)

50,219

38,181

Nacional Hispana de Hoteles, S. de R. L. de C. V.(1)

21,892

26,891

ICA Ingeniería S. A. de C. V.(2)

-

1,340

Ingenieros Civiles Asociados, S. A. de C. V.(2)

-

8,540

Total

Ps.
72,111

Ps.
107,440


	December 31,
Payable:	2017		2016		2015
Empresas ICA, S.A.B. de C.V. “EMICA”(1)	Ps.	—	Ps.	18,763	Ps.	10,558
Servicios de Tecnología Aeroportuaria, S.A. de C.V. “SETA” (2)		82,501		74,266		41,287
Nacional Hispana Hoteles, S. de R. L. de C. V. (2)		—		5,316		14,559
Operadora Nacional Hispana, S.A. de C.V.(2)		7,985		6,110		—
VCD Construcción y Desarrollo, S.A.P.I. de C.V.(2)		4,773		26,325		—
ICA Ingeniería S. A. de C. V.(2)		367		7,155		—
Actica Sistemas, S. de R.L. de C.V.		1,496		1,760		—
Grupo ICA, S.A. de C.V.		16,592		—		—
GGA Capital, S.A.P.I. de C.V.		14,700		—		—
ICA Constructora de Infraestructura, S.A. de C.V.		783		—		—
Grupo Hotelero Santa Fe, S. A. de C. V. (2)		825		633		1,117
	Ps.	130,022	Ps.	140,328	Ps.	67,521

(1)

Holding Company

(2)

~~(1) Holding Company~~

~~(2)~~ Affiliated company

b.c.The principal transactions with related parties performed in the normal course of business, are as follows:

Year ended December 31,

2014

2013

2012

Capital Investment

Transportation equipment

Ps.
-

Ps.
-

Ps.
6,867

SAP

15,917

-

-

Hotel

29,937

-

-

Expenses:

Technical assistance payments received and travel expense

82,461

66,643

67,365

Maintenance of transportation equipment

-

-

3,416

Major maintenance and improvements on concessioned assets:

Platform

22,833

5,416

22,375

Runway

36,263

64,500

67,043

Improvements on concessioned assets:

Platform

20,315

-

-

Terminal

1,307

-

-

Income

Interest

2,112

-

-

Management services

463

-

-

~~On April 22, 2014, GACN issued a short-term promissory note (~~~~pagaré~~) to a subsidiary of Empresas ICA with a principal amount of Ps. 100,000 and an annual interest rate based on market prices; and as an advance of part of the reimbursement of capital that a subsidiary of Empresas ICA would receive in the following months. On May 21, 2014, the subsidiary of Empresas ICA repaid the principal and interest on this short-term promissory note.

~~F-50~~


	Year ended December 31,
	2017		2016		2015
Capital Investment:
SAP	Ps.	—	Ps.	—	Ps.	10,706
Hotel		—		340		—
Industrial warehouse		46,172		103,235		29,067
Expenses:
Technical assistance payments received		135,074		117,987		97,818
Administrative services		66,783		51,950		22,061
Major maintenance and improvements on concessioned assets:
Platform		10,405		—		3,162
Runway		—		—		29,089
Improvements to concessioned assets:
Construction terminal		210,098		—		—
Platform		—		21,694		—

Remuneration to directors and officers who sit on the Board of Directors and Executive, Audit, Corporate Governance, Finance and Sustainability Committees totaled ~~Ps. 16,082, Ps. 15,289~~Ps.15,283, Ps.15,030 and ~~Ps. 12,043~~Ps.14,725 for ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively. In addition, remuneration to the Chairman of the Board totaled ~~Ps. 850, Ps. 764~~Ps.5,251, Ps.4,970 and ~~Ps. 616~~Ps.4,675 for ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively.

Employee Benefits –— Employee benefits granted to key management personnel of the Company were comprised solely of short-term benefits of ~~Ps. 73,912, Ps. 64,984~~Ps.70,413, Ps.74,706 and ~~Ps. 53,796~~Ps.75,487 in ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively.

Technical Assistance ~~– In 2000,~~— On May 13, 2015, the Company ~~entered into a technical assistance~~signed an extension and ~~transfer-of-technology contract with SETA, which will be in effect for 15 years from~~amendment to its Technical Assistance Agreement. The annual consideration under the ~~agreement date. Currently, the Company~~amendment is ~~required to pay~~ the greater of ~~the fixed~~ U.S.$ ~~3,000 component or 5% of EBITDA (as defined in the contract)~~3,478,000 (updated annually ~~for such services. Beginning in 2007, the fixed U.S.$ 3,000 component is updated~~ according to the U.S. consumer price ~~index~~index) and 4% of the ~~United States. In 2014, 2013 and 2012, 5%~~Company’s consolidated EBITDA before payment of the technical assistance fee for the first three

F-63

years or 3% of consolidated EBITDA before payment of the technical assistance fee during the last two years. For purposes of this calculation, consolidated EBITDA is calculated prior to deducting the technical assistance fee and considers airport concession operations, as well as subsidiaries that provide employee services to airports directly or indirectly, exclusively.

In 2017, 2016 and 2015, the variable consideration was greater than ~~that of~~ the fixed consideration, at U.S.~~$ 3,000 component.~~ $3,517,000, U.S. $3,478,000 and U.S. $3,482,000, respectively.

As of December 31, ~~2014,~~2015, SETA’s shareholders were ~~Aeroinvest~~CONOISA with 74.5% and Aéroports de Paris Management, S. A. (ADPM) with 25.5%. Pursuant to the Company’s bylaws, SETA (as holder of the Company’s Series “BB” shares) has the ability to appoint and remove the Company’s Chief Financial Officer, Chief Operating Officer and Commercial Director, the right to elect three members of the Company’s board of directors, and the right to veto certain actions requiring approval of the Company’s shareholders (including the payment of dividends and the right to appoint certain members of senior management). In the event of the termination of the technical assistance agreement, the Series “BB” shares will be converted into Series “B” shares resulting in the termination of these rights. If at any time ~~prior to June 14, 2015, SETA were to hold less than 7.65% of the Company’s capital stock in the form of Series “BB” shares, it would lose its veto rights. If at any time~~ after June 14, 2015, SETA were to hold less than 7.65% of the Company’s capital stock in the form of Series “BB” shares, such shares must be converted into Series “B” shares, which would cause SETA to lose all of its special rights. So long as SETA retains at least 7.65% of the Company’s capital stock in form of Series “BB” shares, all its special rights will remain in force.

~~Pursuant to~~SETA must maintain 51% of its shareholding in GACN, acquired under the ~~Company’s bylaws,~~purchase agreement for a term of 7 years as from the ~~technical assistance agreement and~~date of the participation agreement (the “seven-year waiting period”) and the remaining 49% during a three-year waiting period, as the case may be, assuming that at the end of the seven-year waiting period, SETA may ~~not transfer more than~~sell to third parties annually up to one-eighth of 51% of its ~~Series “BB”~~shareholding in GACN, and at the end of the three-year waiting period or the five-year waiting period, as the case may be, SETA may sell or otherwise transfer unrestricted shares ~~until after June 14, 2008. After such date, SETA is entitled to transfer up to~~held by GACN in excess of 51% (fifty one ~~eighth of such 51% during each year thereafter. As of December 31, 2014, SETA has not transferred any~~percent) of its ~~representative Series “BB” shares.~~equity stake.

AtADPM announced its decision to exercise its option to exchange its 25.5% shareholding in SETA, the ~~Extraordinary Shareholders’ meeting,~~strategic partner of GACN, for GACN B shares held ~~on April 23, 2015, the Company’s shareholders, at the request~~by SETA, which represent 4.3% of ~~one~~GACN’s total equity, and of ~~our non-controlling shareholders, voted on, among other items, the renewal or non-renewal~~its intention to sell this equity interest in GACN through an international private placement outside Mexico, which was successfully concluded in October 2016

SETA remained GACN’s strategic partner. Upon completion of the ~~Technical Assistance Agreement. As a result~~transactions, ICA’s wholly-owned subsidiary CONOISA became the indirect shareholder of ~~not reaching~~100% of SETA’s capital stock, which in turn holds 12.6% of GACN, all in the ~~majority vote required for its non-renewal, the Technical Assistance Agreement will be automatically renewed for another five-year term.~~form of BB shares. In addition, CONOISA owns 1.9% of GACN’s B shares directly.

26.~~Segment of financial information~~ Operating segment data

The reportable segments are determined on the basis of which the Company internally reports its segment reporting to senior management for purposes of making operating decisions. Considering the same accounting basis described in ~~Note~~note 4, for the purpose of allocating resources and assessing segment performance, segments are presented at their most detailed level of operating segments, such that each airport, hotel and industrial park is considered a reportable ~~segment and hotels is considered a~~ segment. The financial information of the holding company and its service companies, have been combined and included in the “other” column. The information by operating segment is presented considering internal reports on the business units of the Company, which are revised regularly by the Company’s management for purposes of operational decision making in order to allocate resources to a segment and evaluate its performance.

~~F-51~~

F-64


December 31, 2014	Aeronautical revenues		Non-aeronautical revenues		Construction services revenues		Depreciation and amortization		Major maintenance provision		Allowance for doubtful accounts		Operating income		Interest expense		Interest income		Income tax		Assets per segment		Liabilities per segment		Capital investments		Investments in airport concessions
																																	Construction		Depreciation		Major		Allowance for																Investments
																													Aeronautical		Non-aeronautical		services		and		maintenance		doubtful		Operating		Interest		Interest				Assets per		Liabilities per		Capital		in airport
December 31, 2017																													revenues		revenues		revenues		amortization		provision		accounts		income		expense		income		Income tax		segment		segment		investments		concessions

Metropolitan
Monterrey	Ps.	1,167,807	Ps.	360,228	Ps.	36,618	Ps.	75,036	Ps.	24,330	Ps.	1,102	Ps.	270,403	Ps.	(10,586)	Ps.	2,804	Ps.	43,270	Ps.	4,344,401	Ps.	663,502	Ps.	44,869	Ps.	2,462,510	Ps.	2,046,097	Ps.	547,586	Ps.	367,214	Ps.	84,132	Ps.	72,284	Ps.	(4,263)	Ps.	518,737	Ps.	7,975	Ps.	(24,111)	Ps.	100,978	Ps.	4,993,403	Ps.	826,644	Ps.	505,445	Ps.	2,785,385
Tourist
Acapulco	117,573		22,779		48,313		16,601		3,477		(13)		45,252		(1,003)		14,543		(2,981)		1,002,032		92,715		60,496		520,362			158,448		34,089		372,253		20,105		8,475		(1,443)		38,531		4,764		(4,845)		(648)		1,197,164		282,120		372,253		996,944
Mazatlán	148,781		37,002		66,475		11,794		25,573		104		36,479		(1,736)		18,198		6,679		909,203		110,952		69,158		459,333			249,479		47,819		30,205		15,815		16,913		(168)		59,470		4,259		(20,699)		15,213		1,128,244		150,567		30,223		508,123
Zihuatanejo	102,780		19,990		14,504		13,738		12,059		40		24,653		1,101		2,168		(19,449)		555,237		115,549		20,301		452,108			167,550		27,334		28,039		17,347		20,566		(445)		38,977		9,886		(7,494)		4,367		596,780		116,609		28,138		520,632
Regional
Chihuahua	162,469		34,792		15,719		11,599		12,578		75		38,482		(2,334)		11,409		7,785		652,496		117,722		17,131		348,748			308,746		52,742		122,412		12,682		18,446		(4)		72,298		12,251		(21,242)		17,271		903,724		213,533		122,448		460,816
Culiacán	223,423		35,022		34,097		14,148		10,217		(21)		50,491		(1,728)		1,052		7,893		681,227		156,675		45,264		466,986
Culiacan																														409,399		53,296		43,362		16,147		10,368		(1,159)		92,556		7,637		(7,940)		20,847		816,623		126,234		44,389		508,523
Durango	48,937		7,784		13,598		5,981		9,805		-		11,128		567		162		(427)		254,608		51,595		16,451		156,782			100,884		11,061		19,974		6,140		18,130		282		22,389		6,712		(8,174)		954		292,704		67,734		19,991		170,869
San Luis Potosí	84,498		17,508		14,772		5,680		6,487		(25)		20,012		(5,632)		424		3,471		274,944		119,125		16,777		196,517
San Luis Potosi																														149,823		24,603		108,756		7,934		29,556		(1,275)		29,078		4,791		(8,272)		7,570		449,272		232,186		108,756		316,361
Tampico	124,312		18,183		12,981		7,356		14,364		(62)		28,123		2,027		492		5,711		256,379		51,617		13,801		183,062			171,550		25,859		46,740		7,697		14,583		(1,627)		39,483		2,674		(3,441)		8,418		316,409		83,646		46,740		254,622
Torreón	98,985		15,671		12,444		9,437		14,961		(155)		22,000		(378)		1,472		3,456		341,973		84,164		12,733		251,765
Torreon																														156,158		22,478		20,018		8,726		19,361		(59)		35,743		8,382		(9,902)		7,019		371,887		111,569		20,018		264,450
Zacatecas	56,872		7,535		14,036		6,247		15,631		-		12,851		741		198		1,833		237,781		58,565		14,125		184,853			95,153		12,172		19,175		6,815		19,843		46		19,354		3,487		(4,465)		3,495		276,803		90,328		19,175		208,814
Border
Ciudad Juárez	124,252		24,784		13,782		9,294		13,313		181		29,446		(754)		529		535		419,906		67,049		15,194		334,044
Ciudad Juarez																														244,891		40,676		31,917		11,103		31,042		(95)		57,113		4,441		(10,987)		13,507		480,320		124,745		33,404		355,659
Reynosa	85,018		10,988		9,988		6,939		17,137		-		18,918		(2,884)		311		(52,622)		264,084		86,307		10,416		163,207			104,311		15,094		127,353		6,616		11,471		(362)		23,881		—		1,313		2,819		440,857		208,144		127,353		305,411
Hotel services	-		195,742		-		19,883		-		70		53,176		(18,809)		910		13,228		333,113		205,738		5,465		-
Others	-		2,441,636		-		10,249		-		-		807,575		(288,839)		88,354		213,963		7,568,289		5,567,249		74,251		-
Hotel
NH T2 Hotel																														—		250,777		—		20,799		—		—		75,797		5,537		(876)		15,454		289,844		32,374		1,338		—
Hilton Garden Inn																														—		90,875		—		10,111		—		54		25,680		2,329		(3,857)		3,753		250,264		8,857		9,090		—
Industrial Park:
VYNMSA																														—		12,914		—		9,200		—		—		(1,767)		373		(2,034)		(3,053)		242,220		43,260		70,726		—
Other																														—		4,034,440		—		37,836		—		(43)		3,353,545		317,471		(40,411)		595,109		13,789,549		5,756,750		30,664		—
Total																														4,362,489		5,303,815		1,337,418		299,205		291,038		(10,561)		4,500,865		402,969		(177,437)		813,073		26,836,067		8,475,300		1,590,151		7,656,609
	2,545,707		3,249,644		307,327		223,982		179,932		1,296		1,468,989		(330,247)		143,026		232,345		18,095,673		7,548,524		436,432		6,180,277
Total
Eliminations	(13,041)		(2,359,950)		-		-		-				-		65,879		(65,879)		-		(5,677,793)		(1,247,247)		-		-			(15,458)		(3,847,477)		(10,960)		—		—		—		(1,261,746)		(50,147)		50,147		—		(12,635,267)		(1,503,815)		(8,192)		(8,192)

Consolidated	Ps.	2,532,666	Ps.	889,694	Ps.	307,327	Ps.	223,982	Ps.	179,932	Ps.	1,296	Ps.	1,468,989	Ps.	(264,368)	Ps.	77,147	Ps.	232,345	Ps.	12,417,880	Ps.	6,301,277	Ps.	436,432	Ps.	6,180,277	Ps.	4,347,031	Ps.	1,456,338	Ps.	1,326,458	Ps.	299,205	Ps.	291,038	Ps.	(10,561)	Ps.	3,239,119	Ps.	352,822	Ps.	(127,290)	Ps.	813,073	Ps.	14,200,800	Ps.	6,971,485	Ps.	1,581,959	Ps.	7,648,417

December 31, 2013	Aeronautical revenues		Non-aeronautical revenues		Construction services revenues		Depreciation and amortization		Major maintenance provision		Allowance for doubtful accounts		Operating income		Interest expense		Interest income		Income tax		Assets per segment		Liabilities per segment		Capital investments		Investments in airport concessions

Metropolitan
Monterrey	Ps.	1,046,621	Ps.	320,774	Ps.	74,722	Ps.	71,513	Ps.	56,249	Ps.	(2,947)	Ps.	222,754	Ps.	(26,627)	Ps.	2,252	Ps.	(28,997)	Ps.	4,362,342	Ps.	882,689	Ps.	85,737	Ps.	2,495,346
Tourist
Acapulco	108,420		20,266		43,861		14,845		17,499		(353)		28,878		(2,344)		16,562		(95,375)		956,133		104,489		50,246		494,885
Mazatlán	136,063		34,719		14,173		11,258		22,044		(5)		28,585		(3,780)		22,712		4,683		864,654		108,999		15,779		403,943
Zihuatanejo	91,203		17,843		24,348		13,346		10,017		123		23,622		(3,217)		1,242		8,208		556,021		96,789		27,561		449,643
Regional
Chihuahua	148,028		30,461		9,127		10,190		11,419		111		28,517		(4,346)		9,940		(26,729)		601,640		103,732		22,099		343,191
Culiacán	211,588		32,504		18,294		12,600		31,523		(765)		39,792		(5,977)		802		4,153		624,349		138,530		20,833		445,943
Durango	44,341		7,144		23,149		4,092		7,383		(8)		7,770		(1,841)		272		(68,644)		251,282		53,495		23,959		153,739
San Luis Potosí	65,573		14,541		73,874		3,698		35,637		124		12,834		(2,202)		722		(29,413)		265,407		120,636		84,355		186,489
Tampico	108,330		15,504		6,116		5,518		19,496		73		21,896		(4,248)		659		(22,256)		260,445		60,047		7,006		182,659
Torreón	87,321		14,114		11,887		7,267		17,060		139		12,624		(3,459)		2,432		(48,376)		367,317		79,358		14,717		253,468
Zacatecas	51,282		7,139		26,264		5,146		7,099		(103)		9,890		(2,927)		367		(21,773)		240,132		72,641		26,545		189,264
Border
Ciudad Juárez	112,707		22,460		9,078		8,212		17,275		(19)		22,751		(3,882)		2,002		(39,673)		424,192		70,539		11,548		328,981
Reynosa	69,919		9,425		17,795		4,526		10,466		(2)		13,164		(6,304)		222		31,781		206,816		97,955		18,297		164,495
Hotel services	-		176,510		-		20,219		-		(95)		52,490		30,121		(1,898)		4,859		358,728		254,156		13,408		-
Others	-		2,113,785		-		8,796		-		-		638,340		(211,658)		115,010		187,164		6,699,637		3,854,907		22,381		-

Total	2,281,396		2,837,189		352,688		201,226		263,167		(3,727)		1,163,907		(252,691)		173,298		(140,388)		17,039,095		6,098,962		444,471		6,092,046
Eliminations	(12,527)		(2,040,688)		-		-		-		-		45,488		43,332		(100,648)		5,512		(6,027,642)		(1,484,903)		-		-

Consolidated	Ps.	2,268,869	Ps.	796,501	Ps.	352,688	Ps.	201,226	Ps.	263,167	Ps.	(3,727)	Ps.	1,209,395	Ps.	(209,359)	Ps.	72,650	Ps.	(134,876)	Ps.	11,011,453	Ps.	4,614,059	Ps.	444,471	Ps.	6,092,046

~~F-52~~

F-65

~~December 31, 2012~~

~~Aeronautical~~
~~revenues~~

~~Non-aeronautical~~
~~revenues~~

~~Construction~~
~~services~~
~~revenues~~

~~Depreciation and~~
~~amor~~~~tization~~

~~Major~~
~~maintenance~~
~~provision~~

~~Allowance for~~
~~doubtful~~
~~accounts~~

~~Operating~~
~~income~~

~~Interest~~
~~expense~~

~~Interest~~
~~income~~

~~Income tax~~

~~Assets per~~
~~segment~~

~~Liabilities per~~
~~segment~~

~~Capital~~
~~investments~~

~~Investments in~~
~~airport~~
~~concessions~~

~~Metropolitan~~


																																	Construction		Depreciation		Major		Allowance for																Investments
																													Aeronautical		Non-aeronautical		services		and		maintenance		doubtful		Operating		Interest		Interest				Assets per		Liabilities per		Capital		in airport
December 31, 2016																													revenues		revenues		revenues		amortization		provision		accounts		income		expense		income		Income tax		segment		segment		investments		concessions

Metropolitan
Monterrey	Ps.	989,976	Ps.	292,169	Ps.	72,331	Ps.	65,864	Ps.	55,770	Ps.	(2,973)	Ps.	206,142	Ps.	(32,954)	Ps.	2,316	Ps.	39,544	Ps.	4,370,457	Ps.	1,117,432	Ps.	96,724	Ps.	2,487,001	Ps.	1,799,823	Ps.	560,016	Ps.	97,631	Ps.	76,016	Ps.	64,794	Ps.	(1,417)	Ps.	473,916	Ps.	1,136	Ps.	(39,945)	Ps.	119,677	Ps.	4,868,188	Ps.	658,768	Ps.	98,585	Ps.	2,492,242
Tourist
Acapulco	99,498		18,725		19,665		13,909		10,288		124		20,310		(781)		18,771		7,507		844,507		130,801		23,875		509,381			149,214		30,446		76,772		19,466		2,934		(521)		39,461		411		(13,246)		5,197		1,085,908		113,528		77,069		641,082
Mazatlán	122,061		34,900		11,940		10,903		6,583		(347)		25,130		(806)		23,551		5,046		810,580		97,245		13,657		400,357			221,522		46,879		19,527		15,458		12,490		(196)		55,052		428		(27,820)		14,978		1,021,766		128,287		19,632		492,692
Zihuatanejo	89,602		17,401		15,708		11,909		6,360		(136)		16,154		(960)		974		1,692		534,879		88,741		26,488		437,975			141,091		26,280		25,699		16,680		17,170		85		35,945		932		(7,736)		5,705		596,541		114,706		25,822		507,683
Regional
Chihuahua	139,127		27,259		26,654		9,183		14,424		(290)		26,427		(569)		10,904		7,902		564,291		126,495		30,479		343,202			272,921		48,374		16,061		11,853		28,066		(1,011)		64,258		2,102		(23,510)		20,277		793,881		170,004		16,202		349,021
Culiacán	194,285		26,605		66,093		10,608		7,561		(1,655)		35,539		(1,985)		522		5,567		601,005		145,561		69,615		439,365
Culiacan																														351,096		48,280		9,608		16,006		11,251		764		79,875		383		(8,017)		20,524		726,063		117,342		9,896		479,351
Durango	45,051		6,723		1,015		3,966		7,152		(164)		8,481		(873)		177		(4,727)		161,874		38,934		1,673		134,178			98,550		11,026		4,381		5,965		14,649		(286)		19,017		—		(5,739)		4,200		290,258		58,281		4,478		155,540
San Luis Potosí	63,281		13,836		9,355		3,208		7,419		(71)		12,447		(54)		1,861		3,178		162,740		58,743		10,885		115,559
San Luis Potosi																														130,337		23,666		24,456		7,105		28,384		711		30,801		—		(13,166)		11,286		293,618		89,123		24,553		214,064
Tampico	105,275		14,938		8,028		5,172		9,914		(81)		19,068		(1,282)		291		(3,206)		235,147		75,141		9,772		181,357			162,389		22,735		32,053		6,567		10,782		1,907		37,025		—		(3,016)		10,685		306,466		90,438		32,157		214,318
Torreón	77,305		13,259		10,231		6,933		13,919		(507)		15,283		(78)		582		(1,456)		299,076		71,145		10,912		248,792
Torreon																														151,251		20,087		5,722		8,515		16,916		186		34,268		9		(8,265)		10,537		372,001		90,046		5,834		251,932
Zacatecas	51,177		6,713		21,343		4,467		5,929		(16)		9,509		(2,016)		128		8,570		194,505		56,036		22,251		167,534			87,616		10,120		7,677		6,656		17,315		(2)		19,547		150		(8,396)		6,891		286,407		74,939		7,789		195,325
Border
Ciudad Juárez	110,444		20,563		27,785		8,222		12,701		(393)		20,756		(344)		1,665		2,737		380,090		86,313		28,395		327,816
Ciudad Juarez																														208,042		34,351		9,905		10,334		24,025		507		48,478		147		(12,530)		14,819		452,024		111,710		10,005		334,050
Reynosa	53,719		8,143		31,570		3,671		6,188		(180)		9,888		(855)		108		2,196		221,262		87,711		33,778		150,472			113,506		14,150		23,847		6,290		19,240		212		25,539		179		(7,364)		7,923		282,249		67,237		23,944		183,446
Hotel services	-		158,477		-		20,334		-		-		39,218		(25,638)		889		4,389		378,573		293,179		-		-
Others	-		2,123,202		-		8,454		-		-		715,569		(146,279)		76,653		209,233		6,637,073		2,920,377		13,626		-
Hotel
NH T2 Hotel																														—		227,884		—		20,739		—		240		68,595		11,497		(639)		15,505		290,685		85,543		2,095		—
Hilton Garden Inn																														—		83,625		—		9,268		—		—		22,222		2,171		(986)		4,244		234,123		15,996		13,410		—
Industrial Park:
VYNMSA																														—		4,952		—		3,416		—		—		(3,063)		—		(238)		(1,315)		194,209		32,577		104,326		—
Other																														—		4,847,425		—		36,300		—		(430)		2,843,210		345,728		(53,566)		475,649		13,052,525		5,554,128		62,163		—
Total																														3,887,358		6,060,296		353,339		276,634		268,016		749		3,894,146		365,273		(234,179)		746,782		25,146,912		7,572,653		537,960		6,510,746

Total	2,140,801		2,782,913		321,718		186,803		164,208		(6,689)		1,179,921		(215,474)		139,392		288,172		16,396,059		5,393,854		392,130		5,942,989
Eliminations	(10,138)		(2,093,956)		-		-		-		-		(19,747)		111,628		(111,628)		-		(6,385,649)		(1,799,400)		-		-			(14,623)		(4,727,534)		(8,567)		—		(5,145)		—		(1,110,592)		(34,579)		34,579		—		(11,601,589)		(714,310)		(8,567)		2,768

Consolidated	Ps.	2,130,663	Ps.	688,957	Ps.	321,718	Ps.	186,803	Ps.	164,208	Ps.	(6,689)	Ps.	1,160,174	Ps.	(103,846)	Ps.	27,764	Ps.	288,172	Ps.	10,010,410	Ps.	3,594,454	Ps.	392,130	Ps.	5,942,989	Ps.	3,872,735	Ps.	1,332,762	Ps.	344,772	Ps.	276,634	Ps.	262,871	Ps.	749	Ps.	2,783,554	Ps.	330,694	Ps.	(199,600)	Ps.	746,782	Ps.	13,545,323	Ps.	6,858,343	Ps.	529,393	Ps.	6,513,514

~~F-53~~

F-66


					Construction		Depreciation		Major		Allowance for																Investments
	Aeronautical		Non-aeronautical		services		and		maintenance		doubtful		Operating		Interest		Interest				Assets per		Liabilities per		Capital		in airport
December 31, 2015	revenues		revenues		revenues		amortization		provision		accounts		income		expense		income		Income tax		segment		segment		investments		concessions

Metropolitan
Monterrey	Ps.	1,443,311	Ps.	484,111	Ps.	70,999	Ps.	76,353	Ps.	24,327	Ps.	293	Ps.	365,471	Ps.	4,044	Ps.	(11,285)	Ps.	91,560	Ps.	4,501,117	Ps.	626,259	Ps.	73,221	Ps.	2,464,006
Tourist
Acapulco		138,309		27,864		81,869		18,737		21,621		(133)		21,329		832		(7,663)		1,582		1,044,502		113,932		84,354		587,517
Mazatlán		168,703		40,820		41,487		14,487		(4,949)		(576)		40,170		5,283		(16,671)		10,389		934,612		100,921		43,502		487,516
Zihuatanejo		118,736		23,751		57,943		15,073		(73)		(203)		27,338		2,731		(284)		3,844		605,538		148,768		60,483		496,394
Regional
Chihuahua		196,033		40,204		3,769		12,025		30,246		934		26,553		(1,888)		(11,847)		8,991		721,935		159,632		3,933		342,739
Culiacan		255,921		39,981		34,058		15,899		23,338		(102)		40,763		12,319		(1,911)		8,843		683,797		141,263		35,579		487,393
Durango		63,186		9,080		2,992		5,867		23,868		392		10,991		(6,799)		(259)		3,513		281,816		64,356		4,948		155,568
San Luis Potosi		99,341		20,482		4,668		7,431		(16,415)		757		22,686		1,859		(437)		7,575		287,251		117,833		4,760		195,097
Tampico		144,178		22,810		9,589		6,655		21,551		(2,146)		32,793		4,361		(1,389)		2,284		276,428		84,117		9,691		187,509
Torreon		110,480		18,191		14,796		8,484		1,431		(339)		25,065		(3,238)		(1,120)		7,392		361,616		111,837		14,849		253,471
Zacatecas		66,957		9,304		10,294		6,719		10,768		(1,193)		11,601		(2,559)		(439)		3,433		279,613		89,086		10,488		193,119
Border
Ciudad Juarez		146,201		29,225		9,512		10,658		29,265		775		28,593		1,240		(1,195)		7,890		424,666		94,148		11,391		333,676
Reynosa		95,742		12,557		6,012		6,127		9,315		(278)		14,373		(954)		(284)		3,144		263,490		73,408		6,384		164,600
Hotel
NH T2 Hotel		—		212,488		—		20,506		—		—		60,142		14,536		(595)		14,830		311,178		149,555		1,605		—
Hilton Garden Inn		—		16,882		—		1,163		—		—		(984)		369		(583)		(634)		212,412		10,984		95,078		—
Other		—		3,639,434		—		12,625		—		716		1,916,865		342,813		(65,028)		337,238		11,673,674		5,503,723		88,080		—
Total		3,047,098		4,647,184		347,988		238,809		174,293		(1,103)		2,643,749		374,949		(120,990)		511,874		22,863,645		7,589,822		548,346		6,348,605

Eliminations		(13,968)		(3,535,643)		—		—		—		—		(607,194)		(40,185)		40,250		236		(10,353,309)		(1,030,013)		—		—

Consolidated	Ps.	3,033,130	Ps.	1,111,541	Ps.	347,988	Ps.	238,809	Ps.	174,293	Ps.	(1,103)	Ps.	2,036,555	Ps.	334,764	Ps.	(80,740)	Ps.	512,110	Ps.	12,510,336	Ps.	6,559,809	Ps.	548,346	Ps.	6,348,605

~~27.~~~~Revenues~~

F-67

27. Revenues

According to the General Airports Law on Airports and its regulations, Company revenues are classified as aeronautical services and non-aeronautical services.

Aeronautical services include those services provided to airlines and passengers as well as complementary services.

Non-aeronautical services include those services that are not essential for operating an airport, such as the lease of commercial premises, restaurants and banks.

Revenues generated by aeronautical services are under a price regulation system administered by the Ministry of Communications and Transportation for airport concessions, which establishes a maximum rate (TM) for each year in a five-year period. The TM is the maximum amount of revenue per “work load unit” that may be earned at an airport each year from regulated sources. Under this regulation, a work load unit is equivalent to one passenger (excluding transit passengers) or 100 kilograms (220 pounds) of cargo.

Non-aeronautical services are not covered by the regulation system administered by the Ministry of Communications and Transportation. However, in some cases, they may be regulated by other authorities, as is the case with revenues generated from the operation of parking lots.

Under the General Airports Law ~~on Airports~~ and its regulations, revenues generated from the operation of parking lots are considered aeronautical ~~revenues, as they are regulated but not under the maximum tariff; however, for~~revenues. For purposes of these financial statements, such revenues are classified as ~~non-aeronautical, as the definition of aeronautical revenues used by the Company in the accompanying consolidated financial statements are solely those revenues regulated by the maximum tariff.~~non-aeronautical.

Following is a detail of the composition of revenues of the Company, using the classification established by the General Airports Law ~~on Airports~~ and its related regulations, with the exception of non-aeronautical revenues as mentioned in the preceding paragraph:

	Year ended December 31,
	2014		2013		2012		Year ended December 31,
Aeronautical services :
							2017		2016		2015
Aeronautical services:
Domestic TUA	Ps.	1,613,023	Ps.	1,441,037	Ps.	1,355,923	Ps.	2,801,751	Ps.	2,477,711	Ps.	1,863,875
International TUA	455,244		412,817		395,947			921,539		810,519		632,834
Landing charges	130,614		116,082		109,045			178,638		167,298		150,739
Aircraft parking charges on embarking and disembarking	86,932		73,293		71,131
Platform for embarking and disembarking								119,123		118,004		107,465
Aircraft parking charges on extended stay or overnight	28,018		24,704		23,974			31,923		33,242		30,284
Domestic and international passenger and carry-on baggage check	30,430		27,123		24,795			48,762		37,925		36,433
Aerocars and jetways	29,202		25,845		24,378			44,234		40,715		38,983
Complementary: Real estate airport services, access rights to other operators and complimentary services(3)	159,203		147,968		125,470

Other airport services, leases and regulated access rights(3)								201,061		187,321		172,517
Total revenues from aeronautical services(1)	Ps.	2,532,666	Ps.	2,268,869	Ps.	2,130,663	Ps.	4,347,031	Ps.	3,872,735	Ps.	3,033,130

~~F-54~~

F-68


	Year ended December 31,
	2017		2016		2015
Non-aeronautical services:
Commercial activities
Car parking charges	Ps.	200,948	Ps.	192,063	Ps.	181,631
Advertising(2)(3)		106,045		120,591		115,579
Retail operations(2)(3)		106,908		97,631		75,975
Food and beverage(2)(3)		101,577		85,995		67,187
Car rental operators(2)(3)		92,770		75,966		60,168
Time share developers(2)(3)		13,193		13,967		12,283
Financial services(2)(3)		7,418		6,457		5,930
Communication and services(2)(3)		13,604		10,362		13,120
Services to passengers		2,662		2,803		2,669
VIP lounges		20,453		16,937		10,119
Loyalty program		-		911		1,772
Other services		31,420		26,787		23,421
Total revenue from commercial activities		696,998		650,470		569,854

Diversification activities:
Hotel services		340,279		311,679		229,352
OMA Carga		152,963		132,211		107,443
Real estate services		12,328		12,988		10,966
Industrial services		14,647		4,952		—
Other services		4,405		5,852		2,088
Total diversification activities		524,622		467,682		349,849

Complementary activities:
Leasing of space(2)(3)		73,575		67,784		69,376
Access rights		16,538		13,984		11,156
Documented baggage inspection		132,262		121,400		99,974
Other services (CUSS and CUTE)(4)		12,343		11,442		11,332
Total of complimentary activities		234,718		214,610		191,838
Total revenue from non-aeronautical services	Ps.	1,456,338	Ps.	1,332,762	Ps.	1,111,541

(1)

For the year ended December 31, 2017, 2016 and 2015, includes incentives given to airlines for Ps. 62,048, Ps.11,759, and Ps.245,553, respectively.

Year ended December 31,

2014

2013

2012

Non-aeronautical services:

Commercial activities

Car parking charges

Ps.
146,167

Ps.
128,012

Ps.
124,300

Advertising(2)(3)

87,420

80,185

82,494

Retail operations(2)(3)

63,017

57,050

51,162

Food and beverage(2)(3)

53,862

46,472

41,005

Car rentals operators(2)(3)

48,821

45,635

37,355

Time share developers(2)(3)

14,626

14,371

15,590

Financial services(2)(3)

4,740

4,556

4,493

Communication and services(2)(3)

13,337

13,195

6,680

Services to passengers

11,959

12,896

7,711

VIP rooms

6,953

5,038

4,395

Masterkey

1,750

-

-

Total revenue from commercial activities

Ps.
452,652

Ps.
407,410

Ps.
375,185

Diversification activities:

Terminal 2 NH Hotel

195,742

176,510

158,477

OMA Carga

47,309

42,894

31,184

Real estate services

8,155

8,554

3,159

Total diversification activities

Ps.
251,206

Ps.
227,958

Ps.
192,820

Complementary activities:

Leasing of space(2)(3)

60,692

57,147

54,297

Access rights

8,729

7,237

7,896

Baggage inspection

79,090

64,375

25,820

Total of complimentary activities

Ps.
148,511

Ps.
128,759

Ps.
88,013

Recovery of costs from leasing clients

37,325

32,374

32,939

Total revenues from non- aeronautical services

Ps.
889,694

Ps.
796,501

Ps.
688,957

(2)

These revenues are considered as commercial concessions.

(3)

Revenues from commercial concessions and complementary activities are generated principally based on the terms of Company’s operating lease agreements. Lease agreements are based on either a monthly rent (which generally increases each year based on the NCPI) and/or the greater of a monthly minimum guaranteed rent or a percentage of the lessee’s monthly revenues. Monthly rent and minimum guaranteed rent are included under the caption “Commercial concessions” above.

~~(1)For the year ended December 31, 2014, 2013 and 2012, is net of incentives given to airlines for Ps. 219,184, Ps. 175,308 and Ps. 98,495, respectively.~~

~~(2)These revenues are considered as commercial concessions.~~

~~(3)~~Revenues from commercial concessions and complementary activities are generated principally based on the terms of Company’s operating lease agreements. Lease agreements are based on either a monthly rent (which generally increases each year based on the NCPI) and/or the greater of a monthly minimum guaranteed rent or a percentage of the lessee’s monthly revenues. Monthly rent and minimum guaranteed rent are included under the caption “Commercial concessions” above.

(4)

Corresponds to other revenues for complementary activities, primarily Common-Use Self Service (CUSS), revenues from passengers’ self-service kiosks, and Common-Use Terminal Equipment (CUTE) corresponds to revenues from shared terminal equipment for the airlines’ use located in terminal gates

Approximately 82%, 75%, ~~74%~~ and 77% of consolidated revenues for the years ended December 31, ~~2014, 2013~~2017, 2016 and ~~2012,~~2015, respectively, were generated by the Monterrey, Acapulco, Mazatlán, ~~Culiacán,~~Culiacan, Chihuahua, Ciudad ~~Juárez~~Juarez, and Zihuatanejo airports.

~~F-55~~

F-69