Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2018 Earnings Presentation
23 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, July 2018
Slide 1: Second Quarter Earnings Report 2018
Second quarter Earnings Report 2018 1
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by [Grupo México, S.A.B. de C.V. (“GM”)] and is general background information about GM’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information
Slide 3: Welcome / Schedule
Welcome Schedule 2Q18 Grupo Mexico’s main financial highlights ………………………4 Main highlights of our Infrastructure Division ………21 Marlene Finny Octavio Ornelas The Mining economic environment of this quarter and the Q&A session ……………………………………………………25 main issues impacting the Company’s profitability ……
Slide 4: Main Highlights Grupo México 2Q18
2018 Main Highlights Grupo México 2Q18 4
Slide 5: Scorecard
Scorecard Financial performance supports shareholders returns FINANCIAL HIGHLIGHTS Consolidated sales in 2Q18 were 19% higher than in 2Q17, totaling US$2.66 billion. 2Q18 EBITDA for 2Q18 was US$1.34 billion, 32% higher than in 2Q17. SHAR EHOL DER R ET UR NS On July 20, 2018, the Management Board dec
Slide 6: Main Highlights
Main Highlights SALES EBITDA Net Profit Income CAPEX 19% 32% 22% 23% Finally, net Income for 2Q18 was $434 Sales have gone up 19% from 2Q17 million, 23% higher than last quarter. 0 0.65 1.3 0 230 460 2.6 Finally, net Income for 2Q18 was $459 440 EBITDA reached US$1.34 billions million, 22% higher th
Slide 7: Solid balance sheet and dividend payments
Grupo Mexico maintains Payments of Dividends a solid balance sheet 6.0% $0.80 with a low leverage and a net debt to EBITDA ratio of 1.3x. 80% of the debt 2Q18 contracts is in US dollars, and 20% is in pesos. 78% of the debt has a fixed rate. 3.1% 4.5% In addition, Grupo Mexico has a comfortable debt
Slide 8: Debt Maturity Profile
Debt Maturity Profile $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Mining Division Transportation Division Infrastructure Division 8
Slide 9: Mining Division
Mining Division == GRUPOMEXICO MINERIA it)
Slide 10: Financial Highlights
Financial Highlights US$2 billion in sales US$953 million This was a truly remarkable quarter for the Mining Division, with sales of around US$2 billion, a 15% EBITDA increase from 2Q17. Representing a 30% increase from last Driven by higher metal prices +20% copper, +20% year, reached EBITDA margin
Slide 11: Copper outlook
Copper outlook - During the last quarter, the LME copper price increased significantly, from an average of $2.57 per pound in the 2Q17 to $3.12 (+21%) per pound in the 2Q18 2Q18. - During July copper prices have decreased as low as $2.71 per pound on July 19th. - We view this fall in copper prices a
Slide 12: Our Projects
Our Projects T O Q U E PA L A TIA MARIA B U E N A V I ST A Z I N C PIL AR ES EX PA NSION P ROJECT AREQUIPA, PERU SONOR A, M EXI CO SONOR A, M EXI CO T A C NA , PE R U We are working with the government of Construction of a concentrator with a An open pit mine with an annual production Peru to obtain
Slide 13: Our Projects
Our Projects ASARCO 2Q18 ARIZ ONA, USA The project to modernize the Hayden smelting facility in Arizona to comply 100% with the authorities’ new environmental regulation, with an investment of US$229 million, has nearly been completed. It will have a greater efficiency and will reach its new copper
Slide 14: Acquisition of Michiquillay
Acquisition of Michiquillay On February 20th, 2018, the Company won the public bidding 2Q18 process for the Michiquillay project in Cajamarca, Peru. The Company's offer included a purchase price of US$400 million. Michiquillay is a world-class mining project, with mineral resources of 1,150 million
Slide 15: Transportation Division
ay Transportation ~ Division ‘TRANSPORTES
Slide 16: Financial Highlights
Financial Highlights US$601 million US$266 million in sales in EBITDA A 26% increase, due in part to the Florida East Coast Rail Corp consolidation, A 26% increase form 2Q17 with margin expansions as well as stronger operations in Mexico of 230 bps in our Florida’s operations and in the other driven
Slide 17: Income Statement
Income Statement GMXTyS con FEC Accumulated GMXTyS (Exc. FEC) Variance FEC Variance GMXTyS Variance Concept 1H2018 1H2017 $ % 1H2018 1H2017 $ % 1H2018 1H2017 $ % Revenues $ 17,753 $ 17,219 $ 534 3.1% $ 4,080 $ 3,728 $ 115 2.9% $ 21,833 $ 17,219 $ 4,614 26.8% Operation cost (10,058) (9,793) (265) 2.7
Slide 18: Main Variations
Main Variations % Revenue Growth Intermodal: Higher domestic intermodal volume in Mexico and consolidation of volumen from Florida 148% operations. High 30% 46% Minerals: Increased frac sand volume. Growth in movements of mineral fines and briquette to Ciudad Frontera. Cement: New traffic gains from
Slide 19: Infrastructure Division
2018 Infrastructure Division
Slide 20: Financial Highlights
Financial Highlights US$169 million US$72 million All in all, consolidated revenues reached EBITDA in the Division reached US$72 million US$169 million, 11% more than in the during 2017. previous year. That's a 5% increase. $105 million pesos US$32 million During 2Q18, the highway reported $105 mill
Slide 21: Relevant Events
Relevant Events MEXIC O C O MP A ÑÍA NEW REC O RD F O R TH E S ILA O B YP A S S NEW REC O RD IN C O NS TRU C TO RA , P RO GRES S S A LA MA NC A - LEO N ENERGY GENERA TIO N O N P R O J EC T S A ND NEW H IGH WA Y P R O J EC T S During 2Q18, 979,187 MWh were generated, During 2Q18, the highway reported
Slide 22: Relevant Events
Relevant Events S T A R T O F MO D U LA R REFINANC ING REFINANC ING PLATFORMS TAMAULIPAS OPERATIONS C A MP EC H E, TA BA S C O A ND S A LA MA NC A - LEÓ N MO DU LA RES VERA C RU Z A ND R ES T A R T O F H IGH WA Y O P ER A T IO NS O F T H E A ND T A MA U LIP A S C H IH U A H U A P LA TF O RM Credit w
Slide 23: 2018 Q&A
2018 Q&A 23
Grupo México, S.A.B. de C.V. — Q2 2018 Earnings Presentation on 6ix