UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2020

GRUPO AEROPORTUARIO DEL SURESTE, S.A.B. de C.V.

(SOUTHEAST AIRPORT GROUP)

(Translation of Registrant’s Name Into English)

México

(Jurisdiction of incorporation or organization)

Bosque de Alisos No. 47A– 4th Floor

Bosques de las Lomas

05120 México, D.F.

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

(Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .)

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: April 23, 2020

Exhibit 99.1

ASUR Reports 1Q20 Financial Results

Passenger traffic reflects travel disruptions worldwide since mid-March 2020 due to the COVID-19 pandemic

Mexico City, April 23, 2020 – Grupo Aeroportuario del Sureste, S.A.B. de C.V.  (NYSE: ASR; BMV: ASUR) (ASUR), a leading international airport group with operations in Mexico, the U.S., and Colombia, today announced results for the three-month period ended March 31, 2020.

1Q20 Highlights ¹

Business Update on COVID-19

Travel Restrictions Imposed by Governments to Mitigate the Impact of COVID-19

Since March 16, 2020, various governments have issued flight restrictions for different regions of the world to limit the breakout of the COVID-19 virus. With respect to the airports ASUR operates:

On March 20, 2020, the Colombian government issued Decree 439 suspending for 30 calendar days, starting March 23, 2020, international air arrivals for the purpose of entry into or connection through Colombian territory. This suspension was further extended until May 30, 2020 by Decree 569 issued on April 15. Similarly, Decree 457, issued on March 22, suspends all domestic commercial aviation in Colombia from March 25 until April 13, 2020, and this suspension has been extended until April 27, 2020 through Decree 531 issued on April 8, 2020. Consequently, ASUR’s commercial aviation operations at the Enrique Olaya Herrera de Medellín, José María Córdova de Rionegro, Los Garzones de Montería, Antonio Roldán Betancourt de Carepa, El Caraño de Quibdó and Las Brujas de Corozal have been suspended.

In Puerto Rico, the Federal Aviation Authority has accepted a request from the Governor of Puerto Rico that all flights bound to Puerto Rico land at LMM Airport, which is operated by ASUR’s subsidiary Aerostar, and that all arriving passengers be screened by representatives of the Puerto Rico Health Department.  On March 30, 2020, the Governor of Puerto Rico, through an executive order of indefinite term, imposed a two-week quarantine on all passengers arriving at the LMM Airport. Therefore, LMM airport remains open and operating, albeit with substantially reduced flight and passenger volumes.

Mexico and/or the United States may issue flight restrictions similar to those issued in other parts of the world, which would cause a significant further reduction in our operations.

Impact of COVID-19 on ASUR’s March 2020 Passenger Traffic

The COVID-19 pandemic has disrupted the travel industry and governments have introduced travel bans and restrictions. As a result, passenger traffic in ASUR’s three countries of operations declined sharply in the second half of March 2020, with total passenger traffic decreasing 68.8% YoY between March 16 and 31, 2020, as shown in the table below:

Ensuring the Well-being of Employees

ASUR has established health and safety protocols aimed at enhancing the well-being of passengers and essential operating personnel across the airports it operates. Protective gear is required for staff working on the premises, and sanitization practices in accordance with the guidelines of local health authorities are in place. The Company has also implemented a remote working policy for staff where possible.

Strong Liquidity Position and Healthy Debt Maturity Profile

ASUR closed 1Q20 with a strong financial position, with cash and cash equivalents totaling Ps.7,784.3 million and Ps. 15,265.8 million in Total Debt, including Ps.432.0 million in principal payments due in the next three quarters, which represents 2.8% of Total Debt.

Liquidity Position as of March 31, 2020

Figures in thousands of Mexican Pesos

The following table show the debt coverage included in the debt agreements for each of ASUR’s regions or operations:

Debt Ratios at March 31, 2020

LTM EBITDA and LTM Interest Expense figures in thousands of Mexican Pesos

¹ Per the applicable debt agreement, the formula for the Interest Coverage ratio is: LTM EBITDA/ LTM Interest Expense.

² Per the applicable debt agreement, the formula for the Debt Coverage ratio is: LTM Cash Flow Generation / LTM Debt Service. LTM Cash Flow Generation for the period was Ps.1,748,791.6 thousand and LTM Debt Service was Ps.754,318.3 thousand,

³ Per the applicable debt agreement, the formula for the Debt Coverage ratio is: (LTM EBITDA minus LTM Taxes)/ LTM Debt Service. EBITDA minus Taxes for the period amounted to Ps.989.5 million and Debt Service was Ps.408.8 million.

Accounts Receivable at March 31, 2020

Figures in Thousands of Mexican Pesos

Starting in mid-March, some of the airlines and other clients and tenants that operate in ASUR’s airports have asked for assistance, either through discounts on payments owed to ASUR or by an extension on those payments. The Company remains in commercial discussions with those clients and tenants regarding their contracts. Notwithstanding these discussions, ASUR believes it has sufficient liquidity to meet its obligations and continue operating in the normal course.

Cost Reduction Initiatives

ASUR is introducing cost reduction initiatives across its three countries of operations. Most of the Company’s cost structure is fixed, except for concession fees across operations and the technical assistance fee in Mexico, which are all variable costs. The impact from these cost reduction measures is not expected to be significant vis a vis the potential decline in revenues resulting from the disruption in passenger traffic across the Company’s operations.

1Q20 Passenger Traffic

Total passenger traffic at ASUR in 1Q20 declined 6.3% YoY to 12.9 million passengers, reflecting the impact of the COVID-19 crisis on travel, starting mid-March 2020. By geography, traffic declined 8.1% in Mexico, 4.1% in Puerto Rico, and 2.8% in Colombia.

The 8.1% YoY decline in passenger traffic in Mexico was driven by declines of 2.0% in domestic traffic and 12.3% in international traffic. Cancun presented the strongest traffic decline, reporting YoY declines of 5.1% in domestic traffic and 12.8% in international traffic. The COVID-19 crisis impacted mainly international traffic during the quarter, reflecting a reduction in flights from international airlines. All ASUR’s Mexican airports remain open and operating. At this time Terminal 2 and 3 at Cancún Airport are closed due to the reduced demand.

Traffic in Puerto Rico declined 4.1% YoY, reflecting decreases of 3.4% in domestic traffic and 10.5% in international traffic. In Puerto Rico, the Federal Aviation Authority (FAA) accepted a request from the Governor of Puerto Rico that all flights bound to Puerto Rico land at LMM Airport, operated by ASUR’s subsidiary Aerostar, and that all passengers be screened by representatives of the Puerto Rico Health Department.  As a result,

LMM airport remains open and operating, albeit with substantially reduced flight and passenger volumes toward the end of the quarter   Due to Governmental restrictions just the essential commercial spaces are open.

Colombia reported a 2.8% YoY decline in total traffic, driven by declines of 3.1% and 0.8% in domestic and international traffic, respectively. Rionegro Airport in Medellin was the most affected by the health crisis, reporting declines of 4.1% and 0.8% in domestic traffic and international traffic, respectively. In response to COVID-19, the Colombian government suspended commercial aviation at all airports in the country from March 25 through April 13, 2020, which has recently been extended until April 27, 2020. As a result, ASUR’s commercial operations at Enrique Olaya Herrera Airport in Medellín, José María Córdova International Airport in Rionegro, Los Garzones Airport in Montería, Antonio Roldán Betancourt Airport in Carepa, El Caraño Airport in Quibdó and Las Brujas Airport in Corozal have been suspended.

Tables with detailed passenger traffic information for each airport can be found on page 21 of this report.

Review of Consolidated Results

Consolidated Revenues

Consolidated Revenues for 1Q20 increased 1.4% YoY, or Ps.55.6 million, to Ps.4,157.0 million, mainly driven by increases of:

These increases were partially offset by a 3.4% decline in revenues from aeronautical services to Ps.2,296.1 million. Operations in Mexico contributed aeronautical revenues of Ps.1,487.3 million, while Puerto Rico and Colombia contributed Ps.493.6 million and Ps.315.2 million, respectively.

Excluding revenues from construction services, which are deducted as costs under IFRS accounting standards, total revenues would have declined 0.5% YoY to Ps.3,924.6 million. Excluding revenues from construction services, Mexico accounted for 68.6% of total revenues, while Puerto Rico and Colombia represented 19.7% and 11.9%, respectively.

Commercial Revenues in 1Q20 increased 4.0% YoY to Ps.1,509.5 million, mainly reflecting the 6.1% average depreciation of the Mexican peso against the U.S. dollar, while in 1Q19 the peso experienced an average appreciation of 2.2%. Commercial revenues in Mexico rose 1.8% Y0Y to Ps.1,089.2.3 million. In addition, commercial revenues in Puerto Rico increased 2.6% YoY to Ps.278.6 million and in Colombia by 28.7% to Ps.141.7 million.

Commercial Revenues per Passenger increased 11.0% YoY to Ps.116.2 in 1Q20. Commercial revenues per passenger were Ps.135.2 in Mexico, Ps.126.3 in Puerto Rico and Ps.51.9 in Colombia.  Commercial revenues per passenger increased 10.7% in Mexico, 7.0% in Puerto Rico and 32.7% in Colombia.

Consolidated Operating Costs and Expenses

Consolidated Operating Costs and Expenses, including construction costs, during 1Q20 increased 4.7% YoY, or Ps.90.6 million, to Ps.2,016.6 million.

Excluding construction costs, operating costs and expenses increased 1.0% YoY, or Ps.16.9 million, mainly due to the following variations:

Cost of Services declined 1.8%, or Ps.16.6 million, principally due to a 35.3%, or Ps.56.4 million, YoY decline in Colombia, mainly resulting from the recognition in 1Q19 of a Ps.37.1 million expense in connection with the early termination of the aforementioned agreement with the parking lot concessionaire and the Ps.8.6 million provision for doubtful collectible accounts. The decline was partially offset by a 10.5%, or Ps.33.1 million, increase in cost of services in Puerto Rico, driven by higher salaries, energy costs, and higher premiums for insurance and medical insurance, as well as higher water usage. In Mexico, cost of services increased 1.5%, or Ps.6.7 million, reflecting higher energy costs, security costs and professional fees, as well as higher maintenance expenses. This was partially offset by the aforementioned Ps.29.5 million asset tax refund at Merida Airport in 1Q20, compared with the Ps.10.2 million asset tax refund in 1Q19.  

Construction Costs increased 46.5% YoY, or Ps.73.7 million. This was mainly driven by an increase of 831.3%, or Ps.118.0 million, in Mexico, partially offset by declines of 19.0%, or Ps.23.3 million, in Puerto Rico and of 94.8%, or Ps.21.0 million, in Colombia.

G&A Expenses, which reflect administrative expenses in Mexico, increased 6.0% YoY, mainly reflecting higher salaries.

Consolidated Technical Assistance declined 4.0% YoY, mainly driven by Mexico.

Concession Fees increased 0.4% YoY, principally reflecting higher fees in Colombia and Puerto Rico, which rose 8.0% and 6.4%, respectively, partially offset by a 6.4% decline in concession fees in Mexico, mainly due to a decline in regulated revenues, a factor in the calculation of the fee.

Depreciation and Amortization increased 7.5%, or Ps.33.3 million, principally due to an increase of 15.0%, or Ps.24.1 million, in Puerto Rico. The FX translation impact, given the average depreciation of the Mexican peso against the US dollar, and amortization of new investments contributed to the increase.

Consolidated Operating Profit and EBITDA

Consolidated Operating Profit in 1Q20 amounted to Ps.2,264.1 million, with an Operating Margin of 54.5%. This compares with operating profit of Ps.2,216.8 million and a margin of 54.1% in 1Q19. Consolidated Operating Profit in 1Q20 benefited from insurance recoveries of Ps.123.7 million (compared with a Ps.41.4 million in 1Q19) in connection with Hurricane Maria in Puerto Rico, as well as from a 13.3% YoY reduction in costs in Colombia.

Adjusted Operating Margin, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Colombia, and Puerto Rico, and which is calculated as

operating profit divided by total revenues less construction services revenues, was 57.7% in 1Q20 compared with 56.2% in 1Q19.

EBITDA increased 3.0%, or Ps.80.6 million, to Ps.2,743.5 million in 1Q20, compared with Ps.2,662.9 million in 1Q19. By country, EBITDA increased 21.9%, or Ps.91.9 million, in Puerto Rico and 37.6%, or Ps.71.8 million, in Colombia, more than offsetting a 4.1%, or Ps.83.1 million, decline in Mexico. EBITDA margin for 1Q20 was 66.0% compared with 64.9% in 1Q19.

Excluding non-recurring insurance recoveries in connection with Hurricane Maria of Ps.123.7 million in 1Q20 and Ps.41.4 million in 1Q19, consolidated EBITDA would have declined 0.1% YoY, and EBITDA margin would have been 63.0% in 1Q20 and 63.9% in 1Q19.

Adjusted EBITDA Margin, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets in Mexico, Puerto Rico, and Colombia, was 69.9% in 1Q20 compared to 67.5% in 1Q19. Excluding the above mentioned non-recurring insurance recoveries, Adjusted EBITDA margin would have been 66.7% in 1Q20 and 66.5% in 1Q19.

Consolidated Comprehensive Financing Gain (Loss)

In 1Q20 ASUR reported a Ps.347.2 million Consolidated Comprehensive Financing Gain, compared to a Ps.191.3 million loss in 1Q19.

In 1Q20, ASUR reported a foreign exchange gain of Ps.536.7 million, resulting from the 6.1% quarterly average depreciation of the Mexican peso against the U.S. dollar (24.5% quarter-end depreciation) together with a U.S. dollar foreign currency net asset position. This compares to a Ps.18.1 million foreign exchange loss in 1Q19 resulting from the 2.2% quarterly average appreciation of the Mexican peso (1.4% quarter-end appreciation) during that period on its foreign currency net asset position.

Interest expense declined Ps.13.7 million, or 4.8%, during the period, mainly driven by a decline in interest expense of Ps.7.8 million, or 6.1%, in Puerto Rico, reflecting a total of Ps.330.5 million in loans paid down in 2019 and 2020. Interest expense in Mexico declined Ps.7.7 million, or 7.3%, reflecting a decline in the TIIE interest rate. Colombia reported a Ps.7.6 million decline in interest payments, reflecting principal loan payments totaling Ps.198.1 million in 2019 and 2020. Interest income declined 27.0%, or Ps.30.0 million, mainly in Colombia as a result of the recognition in 1Q19 of interest income of Ps.33.0 million resulting from a favorable resolution of a legal claim against a contractor.

Income Taxes

Income Taxes for 1Q20 increased Ps.140.0 million YoY, principally due to the combination of the following factors:

Majority Net Income

Majority Net Income for 1Q20 increased 28.3%, or Ps.415.9 million, to Ps.1,884.4 million from Ps.1,468.4 million in 1Q19. Earnings per common share for the quarter were Ps.6.2812 and earnings per ADS (EPADS) were USD$2.6746 (one ADS represents ten series B common shares). This compares with earnings per share of Ps.4.8948 and earnings per ADS of USD$2.0843 for the same period last year.

Excluding non-recurring insurance recoveries of Ps.123.7 million in 1Q20 and Ps.41.4 million in 1Q19 in connection with Hurricane Maria, Majority Net Income for 1Q20 would have increased 25.4% YoY.

Net Income

Net Income for 1Q20 increased 29.3%, or Ps.445.8 million, to Ps.1,964.9 million from Ps.1,519.1 million in 1Q19.

Excluding the non-recurring insurance recoveries in connection with Hurricane Maria in 1Q20 and 1Q19 as described above, Net Income for 1Q20 would have increased 24.6%

Consolidated Financial Position

On March 31, 2020, airport concessions represented 83.5% of the Company’s total assets, with current assets representing 15.5% and other assets representing 1.0%. As of March 31, 2020, the Company had cash and cash equivalents of Ps.7,784.2 million, a 25.7% increase from Ps.6,192.7 million at December 31, 2019. Mexico contributed Ps.1,229.5 million to the increase in cash and cash equivalents in 4Q19, while Puerto Rico and Colombia contributed Ps.286.7 million and Ps.75.3 million, respectively.

As of March 31, 2020, the valuation of ASUR’s investment in Aerostar, in accordance with IFRS 3 "Business Combinations", resulted in the following effects on the balance sheet: i) the recognition of a net intangible asset of Ps.7,049.2 million, ii) goodwill of Ps.887.2 million (net of an impairment of Ps.4,719.1 million), iii) deferred taxes of Ps.704.9 million, and iv) a minority interest of Ps.5,739.0 million within stockholders' equity.

Furthermore, the valuation of ASUR’s investment in Airplan, in accordance with IFRS 3 “Business Combinations”, resulted in the following effects on the balance sheet as of March 31, 2020: i) the recognition of a net intangible asset of Ps.1,531.0 million, ii) goodwill of Ps.1,504.9, iii) deferred taxes of Ps.241.3 million, and iv) Ps.726.7 million from the recognition of bank loans at fair value.

Stockholders’ equity at the close of 1Q20 was Ps.43,626.1 million and total liabilities were Ps.20,956.3 million, representing 67.5% and 32.5% of total assets, respectively. Deferred liabilities represented 18.4% of ASUR’s total liabilities.

Total Debt at quarter-end increased to Ps.15,265.7 from Ps.13,712.9 million on December 31, 2019, mainly reflecting the depreciation of the peso against the US dollar. On March 31, 2020, 26.1% of ASUR’s total debt was denominated in Mexican pesos, 53.9% in U.S. Dollars (at Aerostar in Puerto Rico) and 20.0% in Colombian pesos.

Net Debt-to-LTM EBITDA stood at 0.7x at the close of 1Q20, while the Interest Coverage ratio was 8.1x. This compares with Net Debt-to-LTM EBITDA of 0.9x and an Interest Coverage Ratio of 7.4x at March 31, 2019.

Capex during 1Q20 amounted to Ps.353.7 million. Of this amount, Ps.238.9 million reflect the Company’s plan to modernize its Mexican airports pursuant to its master development plans, Ps.113.7 million were utilized by Aerostar in Puerto Rico, and Ps.1.1 million by Airplan in Colombia. This compares with Ps.270.3 million invested in 1Q19, of which Ps.149.0 million was invested in Mexico and Ps.121.3 million in Puerto Rico.

Review of Mexico Operations

Mexico Revenues

Mexico Revenues for 1Q20 increased 1.2% YoY to Ps.2,825.2 million.

Excluding construction, revenues declined 3.1% YoY, reflecting the 6.9% reduction in revenues from aeronautical services, principally due to the 8.1% decline in passenger traffic. By contrast, revenues from non-aeronautical services increased 2.1%, mainly reflecting the 1.8% growth in commercial revenues.

Commercial Revenues increased 1.8% YoY, principally reflecting the appreciation of the Mexican peso against the US dollar and increases across all commercial categories, except advertising and ground transportation, as shown in Table 8.

Commercial Revenues per Passenger for 1Q20 increased 10.7% YoY to Ps.135.2 from Ps.122.1 in 1Q19.

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

As shown in Table 9, during the last 12 months, ASUR opened a total of 7 new commercial spaces, of which 6 are located at Cancun Airport and one at Oaxaca Airport. More details of these openings can be found on page 22 of this report.

Mexico Operating Costs and Expenses

Total Mexico Operating Costs and Expenses for 1Q20 increased 13.5% YoY. This includes construction costs, which rose 831.3%, reflecting higher levels of capital improvements made to concessioned assets during the period. Excluding construction costs, operating costs and expenses increased 0.6% to Ps.902.8 million.

Cost of Services rose 1.5% YoY, mainly reflecting increases in energy and security expenses, as well as professional fees and maintenance expenses at Cancun Airport. The increase was partly offset by a Ps.29.5 million asset tax refund at Merida Airport in 2Q20, compared with an asset tax refund of Ps.10.2 million in the year-ago quarter.

Administrative Expenses increased by 6.0% YoY, principally as a result of higher salaries.

The 4.1% decline in the Technical Assistance fee paid to ITA reflects lower EBITDA in Mexico, excluding extraordinary items, a factor in the calculation of the fee.

Concession Fees, which include fees paid to the Mexican government, declined 6.4%, mainly as a result of the reduction in regulated revenues, a factor in the calculation of the concession fee.

Depreciation and Amortization increased 4.4% YoY, reflecting higher investments to date as well as the impact from the recognition of lease accounting, per IFRS 16.

Mexico Consolidated Comprehensive Financing Gain (Loss)

ASUR’s Mexico operations reported a Ps.518.3 million Comprehensive Financing Gain, compared to a Ps.33.8 million loss in 1Q19. This was mainly due to a foreign exchange gain of Ps.537.3 million in the quarter, resulting from the 6.1% average quarterly depreciation of the Mexican peso (24.5% at quarter-end) against the U.S. dollar on a foreign currency net asset position, compared with an Ps.18.3 million foreign exchange loss in 1Q19, resulting from the 2.2% average quarterly appreciation of the Mexican peso during that period (1.4% at quarter-end) and a foreign currency net asset position.

In addition, interest expense declined 7.3% YoY to Ps.97.7 million, reflecting the reduction in the TIIE interest rate. Furthermore, interest income declined 12.5%, reflecting lower cash balances at Merida and Huatulco airports.

Mexico Operating Profit and EBITDA

Mexico reported an Operating Profit of Ps.1,790.3 million in 1Q20, resulting in an Operating Margin of 63.4%, compared with 67.4% in 1Q19.

Adjusted Operating Margin in 1Q20, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets and which is calculated as operating profit divided by total revenues excluding construction services revenues, was 66.5%, compared to 67.7% in 1Q19.

EBITDA declined 4.1% to Ps.1,968.8 million from Ps.2,051.9 million in 1Q19, resulting in an EBITDA Margin of 69.7% in 1Q20, compared with 73.5% in 1Q19.

During 1Q20, ASUR’s operations in Mexico recognized Ps.132.1 million in “Construction Revenues,” a year-on-year increase of 831.3%, due to higher capital expenditures and investments in concessioned assets. Adjusted EBITDA Margin in 1Q20, which excludes the effect of IFRIC 12 with respect to the construction of or improvements to concessioned assets, declined 75 bps to 73.1% from 73.9% in 1Q19.

Mexico Tariff Regulation

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

ASUR’s accumulated regulated revenues at its Mexican operations, as of March 31, 2020, totaled Ps.1,906.7 million, with an average tariff per workload unit of Ps.190.8 (December 2018 pesos), accounting for approximately 58.1% of total Mexico income (excluding construction income) for the period.

The Mexican Ministry of Communications and Transportation reviews compliance with maximum rate regulations at the close of each year.  

During 1Q20, ASUR’s operations in Mexico made capital investments of Ps.238.9 million in connection with the Company’s plan to modernize its Mexican airports pursuant to its master development plans. This compares with capex of Ps.149.0 million in 1Q19.

Review of Puerto Rico Operations

As of March 31, 2020, the valuation of ASUR’s investment in Aerostar, in accordance with IFRS 3 "Business Combinations", resulted in the following effects on the balance sheet: i) the recognition of a net intangible asset of Ps.7,049.2 million, ii) goodwill of Ps.887.2 (net of an impairment of Ps.4,719.1 million), iii) deferred taxes of Ps.704.9 million, and iv) a minority interest of Ps.5,739.0 million within stockholders' equity.

Puerto Rico Revenues

Total Puerto Rico Revenues for 1Q20 increased 2.5% YoY to Ps.873.9 million. Excluding construction services, revenues rose 6.2%, mainly due to the following increases:

Construction services revenues declined 19.0% YoY, reflecting lower capital investments in 1Q20.

Commercial Revenues per Passenger increased 7.0% to Ps.126.3 from Ps.118.1 in 1Q19.

Fifteen commercial spaces were opened at LMM Airport over the last 12 months, as shown in Table 15. More details of these openings can be found on page 22 of this report.

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

Puerto Rico Operating Costs and Expenses

Total Operating Costs and Expenses at LMM Airport in 1Q20 increased 5.7% YoY to Ps.669.4 million. During 1Q20, Aerostar reported construction costs of Ps.99.1 million, reflecting capital investments in concessioned assets. Excluding construction costs, operating costs and expenses increased 11.6% to Ps.570.3 million.

Cost of Services increased 10.5% YoY, or Ps.33.1 million, mainly reflecting increases in salaries and energy costs, as well as higher insurance premium fees and water usage costs.

Concession Fees paid to the Puerto Rican government increased Ps.2.2 million YoY, in line with the concession agreement.

Depreciation and Amortization increased 15.0% YoY, or Ps.24.0 million, mainly reflecting the FX translation impact resulting from the average depreciation of the Mexican peso against the average US dollar, together with amortization of new investments.

Puerto Rico Comprehensive Financing Gain (Loss)

During 1Q20, LMM Airport reported a Ps.117.9 million Comprehensive Financing Loss, compared with a Ps.124.2 million loss in 1Q19, mainly reflecting principal payments of Ps.330.5 million in 2019 and 1Q20.

On February 22, 2013, and as part of the financing of its concession agreement, Aerostar entered into a subordinated term loan with Cancun Airport in the amount of US$100 million at an annual interest rate of

LIBOR plus 2.1%, payable each July 1 and January 1, and with no fixed maturity date. As of December 31, 2019, the remaining balance was US$19.8 million, including capitalized interest.

On March 22, 2013, Aerostar carried out a private bond placement for a total of US$350.0 million to finance a portion of the Concession Agreement payment to the Puerto Rico Ports Authority and certain other costs and expenditures associated with it.

On June 24, 2015, Aerostar carried out a private bond placement for a total of US$50.0 million. In December 2015, Aerostar also contracted a line of revolving credit which, as of March 31, 2020, had not been drawn upon. Subsequent to the end of the quarter, on April 1, 2020, Aerostar drew down US$10.0 million from this line of revolving credit for working capital purposes.  

All long-term debt is collateralized by Aerostar’s total assets.

Puerto Rico Operating Profit and EBITDA

Operating Profit at Puerto Rico in 1Q20 declined to Ps.328.3 million, with an Operating Margin of 37.6%. This compares with 30.6% in 1Q19. During 1Q20 and 1Q19, results benefited from insurance recoveries in connection with Hurricane Maria of Ps.123.7 million and Ps.41.4 million, respectively. Excluding the non-recurring insurance recoveries described above, Operating Margin would have been 23.4% in 1Q20 and 25.7% in 1Q19.

EBITDA increased 21.9% to Ps.511.9 million from Ps.420.0 million in 1Q19. EBITDA Margin expanded to 58.6% from 49.3% in 1Q19, while the Adjusted EBITDA Margin (which excludes IFRIC 12), expanded to 66.1% in 1Q20 from 57.6% in 1Q19.

Excluding the non-recurring insurance recoveries described above that benefitted 1Q20 and 1Q19 results, consolidated EBITDA would have increased 2.5% YoY and EBITDA margin would have remained stable at 44.4% in both quarters. Adjusted EBITDA margin (excluding IFRIC 12), also excluding the non-recurring insurance recoveries in both quarters, would have been 50.1% in 1Q20 compared with 51.9% in 1Q19.

During 1Q20, Aerostar invested Ps.113.7 million to modernize LMM Airport, compared with investments of Ps.121.3 million in 1Q19.

Puerto Rico Tariff Regulation

The Airport Use Agreement signed by Aerostar, the airlines serving LMM Airport, and the Puerto Rico Ports Authority govern the relationship between Aerostar and the principal airlines serving LMM Airport. The agreement entitles Aerostar to an annual contribution from the airlines of US$62 million during the first five years of the term. From year six onwards, the total annual contribution for the prior year increases in accordance with an adjusted consumer price index factor based on the U.S. non-core consumer price index. The annual fee is divided between the airlines that operate at LMM Airport in accordance with the regulations and structure defined under the Airport Use Agreement to establish the contribution of each airline for each particular year.

Review of Colombia Operations

The following discussion compares Airplan's independent results for the three-month periods ended March 31, 2019 and 2020.

The valuation of ASUR’s investment in Airplan, in accordance with IFRS 3 "Business Combinations", resulted in the following effects on the balance sheet as of March 31, 2020: i) the recognition of a net intangible asset of Ps.1,531.0 million, ii) goodwill of Ps.1,504.9, iii) deferred taxes of Ps.241.3 million, and iv) Ps.726.7 million from the recognition of bank loans at fair value.

Colombia Revenues

Total Colombia Revenues for 1Q20 increased 0.3% YoY to Ps.457.8 million. Excluding construction services revenues, revenues rose 5.1%, mainly reflecting the 26.9% increase in revenues from non-aeronautical services, principally the 28.7% increase in commercial revenues, and were partially offset by a 2.4% decline in revenues from aeronautical services.

Commercial Revenues per Passenger increased 32.7% YoY to Ps.51.9, from Ps.39.1 in 1Q19.

As shown in Table 21, during the last twelve months, 43 new commercial spaces were opened in Colombia. More details of these openings can be found on page 22 of this report.

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

Colombia Costs & Expenses

Total Operating Costs and Expenses in Colombia declined 18.1% YoY to Ps.312.3 million in 1Q20. Excluding construction costs, operating costs and expenses declined 13.3% YoY to Ps.311.1 million.

Cost of Services declined 35.3% YoY, or Ps.56.4 million, mainly reflecting a Ps.37.1 million expense in connection with the early termination of the agreement with the parking lot concessionaire in Rionegro Airport, and a Ps.8.6 million provision for doubtful collectible accounts, both in 1Q19.

Construction Costs declined 94.8% YoY, or Ps.21.0 million, reflecting lower investments in complementary works to concessioned assets during the period compared to the prior year.

Concession Fees, which include fees paid to the Colombian government, increased 8.0% YoY, mainly reflecting higher regulated and non-regulated revenues during the period.

Depreciation and Amortization increased Ps.1.8 million, principally reflecting the amortization of new investments.

Colombia Comprehensive Financing Gain (Loss)

During 1Q20, Airplan reported a Ps.53.2 million Comprehensive Financing Loss, compared with a Ps.33.3 million loss in 1Q19. While interest expense declined 11.2% YoY to Ps.60.4 million in 1Q20, comparisons reflect

the recognition of interest income of Ps.33.0 million in 1Q19 resulting from a favorable resolution of a legal claim against a contractor, along with a higher cash balance in the quarter.

On June 1, 2015, Airplan entered into 12-Year Syndicated Loan Facility with eight banks, with a 3-year grace period and a net balance of Ps.3,053.4 million as of March 31, 2020, following a Ps.43.9 million principal payment during the quarter.

Colombia Operating Profit and EBITDA

ASUR’s operations in Colombia reported an Operating Profit of Ps.145.6 million in 1Q20, compared with an operating profit of Ps.75.5 million in 1Q19. The Operating Margin expanded to 31.8% in 1Q20 from 16.5% in 1Q19. The Adjusted Operating Margin, which excludes the impact of IFRIC 12 with respect to construction of or improvements to concessioned assets, increased to 31.9% in 1Q20 from 17.4% in 1Q19.

During 1Q20, EBITDA increased 37.6% to Ps.71.9 million from Ps.190.9 million in 1Q19. The EBITDA Margin increased to 57.4% in 1Q20, from 41.8% in 1Q19. The Adjusted EBITDA Margin, which excludes the impact of IFRIC 12 with respect to construction of or improvements to concessioned assets, increased to 57.5% in 1Q20, from 43.9% in 1Q19. This was mainly due to a decline in cost of services of 35.3%, or Ps.56.4 million, as 1Q19 was impacted by a Ps.37.1 million expense in connection with the early termination of the agreement with the parking lot concessionaire in Rionegro Airport and a Ps.8.6 million provision for doubtful collectible accounts.

During 1Q20, Airplan made capital expenditures of Ps.1.2 million. No investments were made in 1Q19.

Colombia Tariff Regulation

Functions of the Special Administrative Unit of Civil Aeronautics include establishing and collecting fees, tariffs, and rights for the provision of aeronautical and airport services or those that are generated by the concessions, authorizations, licenses, or any other type of income or property. As a result, Resolution 04530, issued on September 21, 2007, establishes tariffs for the rights and the rates conceded to the concessionaire of the following airports: José María Córdova of Rionegro, Enrique Olaya Herrera of Medellín, Los Garzones of Montería, El Caraño of Quibdó, Antonio Roldán Betancourt of Carepa, and Las Brujas of Corozal. This resolution also established the methodology to update and the mechanisms to collect such fees, tariffs, and rights. Airplan's regulated revenues for 1Q20 amounted to Ps.315.2 million.

Subsequent Events

On April 9, 2020, ASUR filed with the U.S. Securities and Exchange Commission a Form 20-F for fiscal year 2019.

On April 1, 2020 Aerostar drew down US$10.0 million from a line of revolving credit for working capital purposes.

Definitions

Concession Services Agreements (IFRIC 12 interpretation). In Mexico and Puerto Rico, ASUR is required by IFRIC 12 to include in its income statement an income line, “Construction Revenues,” reflecting the revenue from construction or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line “Construction Costs” because ASUR hires third parties to provide construction services. Because equal amounts of Construction Revenues and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin. In Colombia, “Construction Revenues” include the recognition of the revenue to which the concessionaire is entitled for carrying out the infrastructure works in the development of the concession, while “Construction Costs” represents the actual costs incurred in the execution of such additions or improvements to the concessioned assets.  

Majority Net Income reflects ASUR’s equity interests in each of its subsidiaries and therefore excludes the 40% interest in Aerostar that is owned by other shareholders. Other than Aerostar, ASUR owns (directly or indirectly) 100% of its subsidiaries.

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

Adjusted EBITDA Margin is calculated by dividing EBITDA by total revenues excluding construction services revenues for Mexico, Puerto Rico, and Colombia and excludes the effect of IFRIC 12 with respect to the construction or improvements to concessioned assets. ASUR is required by IFRIC 12 to include in its income statement an income line reflecting the revenue from construction or improvements to concessioned assets made during the relevant period. The same amount is recognized under the expense line “Construction Costs” because ASUR hires third parties to provide construction services. In Mexico and Puerto Rico, because equal amounts of Construction Revenues and Construction Costs have been included in ASUR's income statement as a result of the application of IFRIC 12, the amount of Construction Revenues does not have an impact on EBITDA, but it does have an impact on EBITDA Margin, as the increase in revenues that relates to Construction Revenues does not result in a corresponding increase in EBITDA. In Colombia, construction revenues do have an impact on EBITDA, as construction revenues include a reasonable margin over the actual cost of construction. Like EBITDA Margin, Adjusted EBITDA Margin should not be considered as an indicator of our operating performance or as an alternative to cash flow as an indicator of liquidity and is not defined under U.S. GAAP or IFRS and may be calculated differently by different companies.

About ASUR

Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASUR) is a leading international airport operator with a portfolio of concessions to operate, maintain, and develop 16 airports in the Americas. These comprise nine airports in southeast Mexico, including Cancun Airport, the most important tourist destination in Mexico, the Caribbean, and Latin America, and six airports in northern Colombia, including José María Córdova International Airport (Rionegro), the second busiest airport in Colombia. ASUR is also a 60% JV partner in Aerostar Airport Holdings, LLC, operator of the Luis Muñoz Marín International Airport serving the capital of Puerto Rico, San Juan. San Juan’s Airport is the island’s primary gateway for international and mainland-US destinations and was the first and currently the only major airport in the US to have successfully completed a public–private partnership under the FAA Pilot Program. Headquartered in Mexico, ASUR is listed both on the Mexican Bolsa, where it trades under the symbol ASUR, and on the NYSE in the U.S., where it trades under the symbol ASR. One ADS represents ten (10) series B shares. For more information, visit www.asur.com.mx

Analyst Coverage

In accordance with Mexican Stock Exchange Internal Rules Article 4.033.01, ASUR reports that the stock is covered by the following broker-dealers: Actinver Casa de Bolsa, Banorte, Barclays, BBVA Bancomer, BofA Merrill Lynch, BX+, Bradesco, BTG Pactual, Citi Investment Research, Credit Suisse, Goldman Sachs, Grupo Bursatil Mexicano, Grupo Financiero Monex, HSBC Securities, Intercam Casa de Bolsa, Insight Investment

Research, Itau BBA Securities, INVEX, JP Morgan, Morgan Stanley, Morningstar, Nau Securities, Punto Casa de Bolsa, Santander Investment, Scotia Capital, UBS Casa de Bolsa and Vector.

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

Forward Looking Statements

Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in ASUR’s filings with the SEC. Actual developments could differ significantly from those contemplated in these forward-looking statements. In particular, the impact of the COVID-19 pandemic on global economic conditions and the travel industry, as well as on the business and results of operations of the Company in particular, is expected to be material, and, as conditions are changing rapidly, is difficult to predict. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.

Contacts:

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