Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q3 2018 Earnings Presentation
22 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, October 2018
Slide 1: 3rd Quarter and Nine Months Earnings Report 2018
3rd Quarter and Nine Months 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 3 Q 1 8 Grupo Mexico’s main financial Main highlights of our highlights ………………………………………….…………5 Infrastructure Division …………………………19 Marlene Finny Octavio Ornelas The Mining economic Q&A session …………………………………………22 environment of this quarter and the main issues impacting the Company’
Slide 4: Main Highlights
Main Highlights Grupo México 3Q18 4
Slide 5: Scorecard
Scorecard Financial performance supports shareholder returns 3 Q 1 8 FINANCIAL HIGHLIGHTS Consolidated sales accumulated in 2018 were 13% higher than in the same period of 2017, totaling US$7.92 billion. EBITDA for 9M18 was US$3.73 billion. SHAREHOLDER RETURNS On October 19, 2018, the Management Boa
Slide 6: Main Highlights
Main Highlights SALES EBITDA Net Profit Income CAPEX 13% US$3.73bn US$1.07bn 17% Consolidated revenues were CAPEX reached US$1.20 higher than in 9M17, bn in 9M18. 0 0.65 1.3 1.95 0 230 460 690 totaling US$7.92 billion. EBITDA was 17% higher Net Income for 9M18 was 16% less than previous year, than i
Slide 7: Solid balance sheet and Dividend Payments
Grupo México maintains a Dividend Payments solid balance sheet with a low leverage and a net debt to EBITDA ratio of 1.3x. 80% 6.8% of the debt contracts are in US dollars, and 20% in pesos. 78% of the debt has a fixed rate. In addition, Grupo México has a $0.80 comfortable debt payment schedule. 7
Slide 8: Debt Maturity Profile
Debt Maturity Profile 1,474 1,100.0 900.0 764 769 Lenn) freineiy 578 557 a 300.0 188 181 siti Pit) 105 100.0 72 47 54. 55-6064 IEEE 14 2020 2021 2023 2024 2025 2027 2028 2029 2032 2033 2036 2037 2038 ©2039 2040 2041 2042 «2043-2044 2045 100.0 ~ Mining Division Transport Division —_w Infrastructure D
Slide 9: Mining Division
Division == GRUPOMEXICO MINERIA Sit)
Slide 10: Financial Highlights
Financial Highlights US$5.99 billion in sales US$2.75 billion This first 9 months, the Mining EBITDA Division reached 10% increasing EBITDA margin reached of 46% in sales vs. 9M17. the first three quarters. 733,895 tons US$122 million With greater production in the Mexican in Net Profit and Peruvian
Slide 11: Copper outlook
Copper outlook During the last quarter, LME copper prices have decreased, from an 3 Q 1 8 average of $3.12 per pound in 2Q18 to $2.77 (-3.8%) per pound in 3Q18. We view this fall in copper prices as a result of market concerns regarding the trade war between the US and China. We expect a recovery in
Slide 12: Our Projects
Our Projects TOQUEPALA BUENAVISTA PILARES TIA MARIA EXPANSION AREQUIPA, PERU ZINC SONORA, MEXICO PROJECT SONORA, MEXICO TACNA, PERU An open pit mine with an Construction of a concentrator annual production capacity We are working with the with a production capacity of of 35,000 tons of copper A US$1
Slide 13: Our Projects
Our Projects 3 Q 1 8 ASARCO ARIZONA, 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 been completed. It will have a greater efficiency and will reach its new copper conce
Slide 14: Transportation Division
455°: Transportation Division Sit) GRUPOMEXICO TRANSPORTES
Slide 15: Financial Highlights
Financial Highlights US$1.74 billion US$756 million in sales in EBITDA A 19% increase vs first nine months in 2017, due in part to the A 18% increase from 9M17 with consolidation of Florida East Coast margin expansion of 1 bp vs the first Rail Corp, as well as stronger nine months ended on September
Slide 16: Main Variations
Main Variations % Revenue Growth 73% Intermodal: Increase in volume of domestic routes and volume consolidation from the Florida operations. High 33% 28% Minerals: Increase on the volume of frac sand, briquette, and iron ore. 25% Cement: New routes due to the conversion from truck and the constructi
Slide 17: CAPEX GMXT 2019
CAPEX GMXT 2019 Description CAPEX (MXN) Main Projects Other Projects ▪ Rail maintenance ▪ Locomotive overhaul MAINTENANCE $ 4,378.7 ▪ New Rail & Ties ▪ Tools and equipment ▪ Bridges ▪ Others ▪ Technology and equipment ▪ Construction / extension of sidings EFFICIENCY $1,288.9 ▪ Construction and ▪ CTC
Slide 18: Infrastructure Division
== GRUPOMEXICO Ne inrracstauctua
Slide 19: Financial Highlights
Financial Highlights US$200 million EBITDA in the Division reached US$468 million US$200 million during 2018. That's a 10% increase than in Consolidated revenues 9M17. reached 7% more than in the first three quarters of the US$33.5 million previous year. Net Profit income in the first 3 quarters of
Slide 20: Relevant Events
Relevant Events NEW RECORD IN NEW RECORD FOR MEXICO COMPAÑÍA ENERGY THE SALAMANCA- CONSTRUCTORA, GENERATION LEON HIGHWAY PROGRESS ON PROJECTS AND NEW PROJECTS During 3Q18, 1,072,931 MWh were During 3Q18, the highway reported Progress has reached 72% vs. 60% generated, with an average power of revenu
Slide 21: Relevant Events
Relevant Events OPERATIONS OF CHIHUAHUA, CAMPECHE, AND TABASCO RIGS, AND SILAO BYPASS VERACRUZ AND TAMAULIPAS MODULAR PLATFORMS During 3Q18, construction of the Silao 3Q17 ended with only the Campeche rig Bypass began. On September 17, $322.5 in operation. Since then, the Chihuahua, million pesos we
Slide 22: Q&A
Q&A 22