Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q1 2019 Earnings Presentation
24 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2019
Slide 1: 1st Quarter Earnings Report 2019
1st Quarter Earnings Report 2019 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 1 Q 1 9 Grupo Mexico’s main Main highlights of our highlights ………………………………………….…………4 Infrastructure Division …………………………21 Marlene Finny Xavier García de Quevedo The Mining economic Q&A session …………………………………………24 environment of this quarter and the main issues impacting the Company’s
Slide 4: Main Highlights Grupo México 1Q19
Main Highlights Grupo México 1Q19 4
Slide 5: Scorecard
Scorecard Financial performance supports shareholder returns FINANCIAL HIGHLIGHTS 1 Q 1 9 • Accumulated consolidated sales reached US$2.53 billion in 1Q19, 1.3% lower than in the previous quarter, given lower copper prices (-10.5%) • EBITDA for 1Q19 totaled US$1.2 billion, 5.5% higher than in 4Q18 S
Slide 6: Main Highlights
Main Highlights PRODUCTION EBITDA Net Profit Income CAPEX 13% Accrued copper production US$1.2bn US$535 million US$264 million We continued our important reached 261,328 tons given growth and trust plan in the a rise in production at all 4Q18 countries where we operate our operations in México, our
Slide 7: Grupo México maintains a solid balance sheet
Grupo México maintains a Dividend Payments solid balance sheet 6.0% 6.8% 7.1% 5.7% With a low leverage and a net debt to EBITDA ratio of 1.4x 80% of the debt is in US Dollars, and 20% in Mexican Pesos (MXN). $0.80 $0.80 $0.80 78% of the debt has a fixed rate. In addition, Grupo México has a comforta
Slide 8: Debt Maturity Profile
1,500.0 1,300.0 1,100.0 US SMILLION 900.0 700.0 500.0 300.0 100.0 100.0 Debt Maturity Profile 1,475 1,174 1,101 994 844 , 748 | 567 556 | Se 7 177 115 -_ 105 71 64 Ty ese 46 = 5485 -_ me 8 16 17 18 18 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Slide 9: Social Highlights Grupo México
Social Highlights Grupo México Hospital in Juchitán, Oaxaca Sustainable Development Through Fundación Grupo We have invested over US$517 México, we have implemented million in social, healthcare, and social, educational, security projects, seeking to environmental, cultural, and generate value and w
Slide 10: Mining Division
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Slide 11: Financial Highlights 1Q19
Financial Highlights 1Q19 US$1.91 billion in sales US$910 million The Mining Division’s sales were 1.3% EBITDA higher than in 4Q18, despite the decline in Copper, Zinc, implying 13.2% growth vs. 4Q18 with an EBITDA margin reached of Molybdenum, and Silver prices. 48% in 1Q19. 261,328 tons US$184 mil
Slide 12: Copper Outlook 2019
Copper Outlook 2019 During 1Q19, LME copper prices have decreased, from an average of $3.14 per pound in 1Q18 to $2.81 (-10.5%) per pound in 1 Q 1 9 1Q19. We expect to achieve maximum capacity at our new concentrator in Toquepala by mid-May and recover production at the San Martin mine. Thereby, thi
Slide 13: Our Projects
Our Projects TOQUEPALA TIA MARIA SAN MARTÍN BUENAVISTA EXPANSION AREQUIPA, PERU ZACATECAS, MEXICO ZINC TACNA, PERU SONORA, MEXICO This US$1.25 billion project We met the Peruvian We have continued with the We are building a concentrator includes a new, state-of-the-art government’s engineering and w
Slide 14: Transportation Division
455°: Transportation Division Sit) GRUPOMEXICO TRANSPORTES
Slide 15: Financial Highlights 1Q19
Financial Highlights 1Q19 US$567 million US$247 million in sales in EBITDA A 5% increase vs 2018, mainly driven by the Agricultural, Automotive and A 10.6% increase from 1Q18, due to Industrial segments. continued operating improvements. 0.5% higher Net Income transportation volume Decreased 27%; We
Slide 16: Main Variations
Main Variations Volumes were affected by blockades, disruption of energy supply in Mexico and snowfall & flood in Midwest of USA. % Revenue Growth 17% Agricultural: Increase in the imports of grains and local crops. High 33% 16% Automotive: Increased exports of new vehicles due to stronger demand on
Slide 17: Precision Scheduled Railroad (PSR)
Precision Scheduled Railroad (PSR) Processes Identified Savings (Annualized) 1) Increase Train Length, Network Fluidity and Speed 2) Decrease Dwell Time at Terminals ▪ Reduction of +4,000 train starts (-4%) 3) Maximize Horsepower Utilization ▪ Over 4,950 railcars to return or scrap 4) Balance Trains
Slide 18: Outlook 2019
Outlook Financial Outlook - 2019 2019 Volume Growth 3% - 5% Revenue Growth 8% - 11% Operating Ratio 150 - 200 BP $406 Million USD Capital Expenditures >15.5% of revenue through 2019 Outlook 2019 Outlook Market Drivers Agricultural Increase in the shuttle trains volume and in local crop. Double Digit
Slide 19: CAPEX GMXT 2019
CAPEX GMXT 2019 CAPEX Description Million (MXN) Main Projects Other Projects ‒ Rail maintenance ‒ Locomotive overhaul MAINTENANCE $ 4,378.7 ‒ New Rail & Ties ‒ Tools and equipment ‒ Bridges ‒ Others ‒ Construction / extension of sidings ‒ Technology and equipment EFFICIENCY $ 1,288.9 ‒ CTC implement
Slide 20: New Refined Products Terminals
New Refined Products Terminals Zamora Topolobampo Gómez Palacio Escobedo Altamira Lagos de Moreno Guadalajara 2019 Valle De Veracruz Manzanillo México 2020 Puebla 2021 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Unloading capacity (mBD) 19 38 42 82 89 189 Carloads per day 29 57 63 124 135 286
Slide 21: Infrastructure Division
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Slide 22: Financial Highlights 1Q19
Financial Highlights 1Q19 US$64 million US$145 million EBITDA during 1Q19 reached an 8% increase vs 1Q18. in sales Following an upward trend compared to the previous year. . US$6.3 million Net Profit in 1Q19, a 456% YOY increase. 22
Slide 23: Relevant Events
Relevant Events ENERGY NEW RECORD FOR NEW FUEL TERMINALS GENERATION THE SALAMANCA- PROJECT LEON HIGHWAY During 1Q19, 861,719 MWh were During 1Q19, revenues totaled $193 Through the new subsidiary of fuel generated vs. 907,487 in the same million pesos—6% more than in the terminals, fuel transfer ser
Slide 24: Q&A
Q&A