Pacific Airport Group [PAC] Filings

20-F 1 pac-20231231.htm 20-F 20-F

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2023

Commission File Number: 001-32751

Grupo Aeroportuario del Pacífico, S.A.B. de C.V.

(Exact name of registrant as specified in its charter)


Pacific Airport Group		United Mexican States
(Translation of registrant’s name into English)		(Jurisdiction of incorporation or organization)

Avenida Mariano Otero No. 1249-B

Torre Pacífico, Piso 6

Col. Rinconada del Bosque

44530 Guadalajara, Jalisco

Mexico

(Address of principal executive offices)

Saúl Villarreal García

Chief Financial Officer

Grupo Aeroportuario del Pacífico, S.A.B. de C.V.

Avenida Mariano Otero No. 1249-B

Torre Pacífico, Piso 6

Col. Rinconada del Bosque

44530 Guadalajara, Jalisco

Mexico

Telephone: + 52 (33) 38801100 ext. 20294

svillarreal@aeropuertosgap.com.mx

(Name, telephone, e-mail and/or facsimile number and address of company contact person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Series B Shares	GAP B	New York Stock Exchange, Inc.*
American Depositary Shares (ADSs), each representing ten Series B Shares	PAC	New York Stock Exchange, Inc.

*Not for trading, but only in connection with the registration of American Depositary Shares, pursuant to the requirements of the Securities and Exchange Commission.

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: N/A

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:


Title of each class:		Number of Shares
Series B Shares		429,485,845
Series BB Shares		75,791,619

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☒

Note: Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). N/A

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐
				Emerging growth company	☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards* provided pursuant to Section 13(a) of the Exchange Act. ☐

*The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:


U.S. GAAP ☐	International Financial Reporting Standards as issued by the International Accounting Standards Board	☒	Other	☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow:


Item 17		☐		Item 18		☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

TABLE OF CONTENTS


	Forward-Looking Statements	1

Item 1.	Identity of Directors, Senior Management and Advisers	2

Item 2.	Offer Statistics and Expected Timetable	2

Item 3.	Key Information	2

	Selected Financial and Other Data	2

	Risk Factors	5

Item 4.	Information on the Company	28

	History and Development of the Company	28

	Business Overview	35

	Regulatory Framework	68

	Organizational Structure	88

	Property, Plant And Equipment	88

Item 4A.	Unresolved Staff Comments	89

Item 5.	Operating and Financial Review and Prospects	89

Item 6.	Directors, Senior Management and Employees	119

Item 7.	Major Shareholders and Related Party Transactions	129

	Major Shareholders	129

	Related Party Transactions	130

Item 8.	Financial Information	132

	Legal Proceedings	132

	Dividends	134

Item 9.	The Offer and Listing	135

	Trading Markets	135

Item 10.	Additional Information	136

	Corporate Governance	136

	Material Contracts	143

	Taxation	143

	Documents On Display	147

Item 11.	Quantitative and Qualitative Disclosures About Market Risk	147

Item 12.	Description of Securities Other Than Equity Securities	150

Item 12A.	Debt Securities	150

Item 12B.	Warrants and Rights	150

Item 12C.	Other Securities	150

Item 12D.	American Depositary Shares	151

Item 13.	Defaults, Dividend Arrearages and Delinquencies	152


Item 14.	Material Modifications to the Rights of Security Holders and Use of Proceeds	152

Item 15.	Controls and Procedures	152

Item 16.	Reserved	154

Item 16A.	Audit Committee Financial Expert	154

Item 16B.	Code of Ethics	154

Item 16C.	Principal Accountant Fees and Services	154

Item 16D.	Exemptions from the Listing Standards for Audit Committees	154

Item 16E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	154

Item 16F.	Change in Registrant’s Certifying Accountant.	155

Item 16G.	Corporate Governance	155

Item 16H.	Mine Safety Disclosure	157

Item 16I.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	157

Item 16J.	Insider trading policies	157

Item 16K.	Cybersecurity	158

Item 17.	Financial Statements	160

Item 18.	Financial Statements	160

Item 19.	Exhibits	161

FORWARD-LOOKING STATEMENTS

This annual report on Form 20-F contains forward-looking statements. We may from time to time make forward-looking statements in our reports to the Securities and Exchange Commission, or the SEC, on Forms 20-F and 6-K, in our annual reports 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 financial analysts, institutional investors, representatives of the media and others. Examples of such forward-looking statements include:

•

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

•

statements of our plans or objectives;

•

changes in our regulatory environment;

•

statements about our future economic performance or that of the countries in which we operate or the countries to and from which the passengers who use our airports arrive and depart; and

•

statements of assumptions underlying such statements.

Words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “should” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the projections, plans, objectives, expectations, estimates and intentions expressed in forward-looking statements. These factors, some of which are discussed below under “Risk Factors,” include material changes in the performance or terms of our concessions, developments in legal proceedings, economic and political conditions and government policies in Mexico, Jamaica or elsewhere, inflation rates, exchange rates, regulatory developments, customer demand and competition. We caution you that the foregoing list of factors is not exclusive and that eventualities related to other risks and uncertainties; may cause actual results to differ materially from those expressed in forward-looking statements. Additionally, we have approximated certain numbers in this annual report to their closest round numbers or a given number of decimal places. Due to rounding, figures shown as totals in tables may not be arithmetic aggregations of the figures preceding them.

Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update them in light of new information or future developments.

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 AND OTHER DATA

The following tables contain selected financial and other data for each of the periods indicated. This data should be read in conjunction with, and is qualified in its entirety by reference to, our audited consolidated financial statements referred to in Item 18 hereof and included elsewhere in this document, including the notes to them. Our audited consolidated financial statements are prepared following International Financial Reporting Standards, issued by the International Accounting Standards Board (IFRS).

References in this annual report on Form 20-F to “U.S. dollars” or “U.S.$” are to the lawful currency of the United States of America. References in this annual report on Form 20-F to “pesos,” “Mexican pesos” or “Ps.” are to Mexico's lawful currency. References in this annual report on Form 20-F to “Jamaican dollars” or “J$” are to Jamaica’s lawful currency. We publish our audited consolidated financial statements in Mexican pesos.

This annual report on Form 20-F contains translations of specific peso amounts into U.S. dollars at specified rates solely for readers' convenience. These translations are for convenience only and should not be construed as representations that the peso amounts 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.16.8998 to U.S.$1.00, the noon buying rate for pesos on December 31, 2023, as published by the U.S. Federal Reserve Board. On April 19, 2024, the exchange rate published by the U.S. Federal Reserve Board was Ps.17.2062 to U.S.$1.00.

This annual report on Form 20-F contains references to “workload units,” which measure an airport’s passenger traffic volume and cargo volume. A workload unit equals a terminal passenger or 100 kilograms (220 pounds) of cargo. When we refer to “terminal passengers,” we mean the sum of all arriving and departing passengers on commercial and general aviation flights, other than transit passengers. “Transit passengers” are those who are typically not required to change aircraft while on a multiple-stop itinerary and who typically do not disembark from their aircraft to enter the terminal building. When we allude to “total passengers,” we include terminal passengers and transit passengers. When we refer to “commercial aviation passengers,” we include terminal and transit passengers, excluding general aviation passengers, such as those on private, non-commercial aircraft. This annual report on Form 20-F contains references to “air traffic movements,” which represent all aircraft arrivals and departures at an airport.

In reviewing this annual report, you should take into account the fact that certain margin and ratio calculations that utilize “total revenues” or “total operating costs” will reflect the effects of International Financial Reporting Interpretation Committee 12 Service Concession Arrangements (“IFRIC 12”), which provides the accounting treatment to be followed for service concession contracts for services considered to be public in nature. We recognize revenues and the associated costs of improvements to concession assets that we are obligated to perform at the airports. These improvements are established by our Master Development Programs for our Mexican airports and by our Capital Development Programs for our Jamaican airports. The amount of revenues for these services is equal to the amount of costs incurred, as we do not obtain any profit margin for these construction services. The amounts paid are set at market value. As a result, revenues from improvements to concession assets do not have a cash impact on our results and do not represent a cash inflow. Furthermore, they are not directly related to passenger traffic, which is the main driver of our revenues.

Consequently, changes in total revenues, total operating costs, operating margin, total revenues per terminal passenger, and other ratios included in this annual report, as well as other ratios potentially useful to investors, may not be comparable between periods. In such instances, we have included a parenthetical notation with comparable amounts or measures. Nominal results for amounts used in calculating certain margins, such as income from operations, are not affected by the adoption of IFRIC 12 and are therefore comparable. See “Item 5, Operating and Financial Review and Prospects – Critical Accounting Policies.”

On October 10, 2019, our Jamaican subsidiary, PAC Kingston Airport Limited (“PACKAL”), took over the operation, management, and administration of Norman Manley International Airport (“NMIA”) in Kingston, Jamaica. This was done under a concession agreement signed with the Jamaican Government on October 10, 2018. Our consolidated financial and operating data for the fiscal year ended December 31, 2019, includes PACKAL’s financial and operating data from October 10, 2019. However, it is important to note that financial and operating data for the fiscal year ending December 31, 2019, may not be directly comparable with data from other fiscal years. PACKAL uses the U.S. dollar as its functional currency, and its financial statements are prepared following IFRS.


		As of and for the year ended December 31,
	2019 (1)		2020		2021		2022		2023		2023
		(thousands of pesos, except per share and per ADS data)									(thousands of U.S. dollars; except per share and per ADS data) (2)
Profit or loss and other comprehensive income data:
Revenues:
Aeronautical services (3)	Ps.	10,547,720	Ps.	7,225,742	Ps.	11,983,954	Ps.	17,336,734	Ps.	19,267,395	U.S.$	1,140,096
Non-aeronautical services (4)		3,771,500		2,448,053		3,662,441		5,197,238		6,165,429		364,823
Improvements to concession assets (5)		1,906,801		2,192,578		3,368,511		4,846,404		7,791,320		461,030
Total revenues		16,226,021		11,866,373		19,014,906		27,380,376		33,224,144		1,965,949
Operating costs:
Employee cost (6)		877,068		970,481		1,115,750		1,373,264		1,724,461		102,040
Maintenance (6)		578,510		426,523		546,548		730,568		728,618		43,114
Safety, security and insurance (6)		428,208		458,316		510,440		577,122		691,155		40,897
Utilities (6)		380,370		355,562		391,836		474,032		485,265		28,714
Expected credit loss of the year (6)		5,299		86,596		15,487		41,444		29,395		1,739
Other operation expenses (6)		475,409		371,229		409,570		584,624		721,175		42,674
Technical assistance fees (7)		461,549		289,154		526,220		756,648		851,320		50,375
Concession taxes (8)		1,318,220		908,310		1,231,044		1,895,182		2,532,896		149,877
Depreciation and amortization:
Depreciation (9)		446,517		495,292		546,128		728,860		851,577		50,390
Amortization (10)		1,329,620		1,505,069		1,504,411		1,584,461		1,694,125		100,245
Total depreciation and amortization		1,776,137		2,000,361		2,050,539		2,313,321		2,545,702		150,635
Other (income) expense - net		1,212		(12,726)		(8,232)		(26,428)		(15,876)		(939)
Cost of improvements to concession assets (5)		1,906,801		2,192,578		3,368,511		4,846,404		7,791,320		461,030
Total operating costs		8,208,783		8,046,384		10,157,713		13,566,181		18,085,431		1,070,157
Income from operations		8,017,238		3,819,989		8,857,193		13,814,195		15,138,713		895,792
Finance cost - net		(671,132)		(1,434,222)		(1,027,930)		(1,538,509)		(2,377,023)		(140,654)
Share of profit (loss) of associates		79		3		-		-
Income before income taxes		7,346,185		2,385,770		7,829,263		12,275,686		12,761,690		755,138
Income tax expense		1,891,443		467,067		1,785,546		3,090,212		3,072,090		181,783
Net profit for the year		5,454,742		1,918,703		6,043,717		9,185,474		9,689,600		573,356
Other comprehensive income
Exchange differences on translating foreign operations		(269,440)		580,308		30,810		(488,316)		(893,709)		(52,883)
Remeasurements of employee benefit – net of income taxes		(1,404)		(16,658)		15,263		8,802		(15,932)		(943)
Cash flow hedges, effective portion of changes in fair value, net of income tax		(172,094)		(299,013)		500,765		100,966		(69,905)		(4,136)
Total comprehensive income for the year		5,011,804		2,183,340		6,590,555		8,806,926		8,710,054		515,394
Profit for the year attributable to:

Pacific Airport Group [PAC] Filings

Pacific Airport Group [GPAEF] Filings

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