Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q4 2019 Earnings Presentation
25 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, February 2020
Slide 1: 4th Quarter 2019 Earnings Report
4rd QUARTER & 2019 Earnings Report
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: Schedule 4Q19
Schedule 4Q19 04 Grupo México’s main highlights Marlene Finny 10 Main highlights of our Mining Division Xavier García de Quevedo Oscar González 14 Main highlights of our Transportation Division Fernando López Guerra 21 Main highlights of our Infrastructure Division Francisco Zinser 24 Q&A session
Slide 4: Main Highlights Grupo México 2019
MAIN HIGHLIGHTS GRUPO MÉXICO –2019 4
Slide 5: Reaching the First Milestone…
Reaching the First Milestone… 2010-2020 63% 1,200.0 1,119 1,118 1,054 1,011 1,002 125 119 1,000.0 154 906 134 118 847 826 792 163 800.0 773 414 418 171 688 189 313 306 331 175 185 600.0 209 322 319 311 308 296 400.0 334 587 571 553 579 581 200.0 421 327 358 292 309 144 - 2010 2011 2012 2013 2014 201
Slide 6: Scorecard 2019
Scorecard 2019 Financial performance supports shareholder returns FINANCIAL HIGHLIGHTS ▪ Sales reached US$10.68 billion during the 2019, 1.8% higher than 2018, in spite of lower copper (-6.9%), zinc (-12.8%) and molybdenum (-4.9%) prices. ▪ EBITDA for 2019 totaled US$4.95 billion, 1.2% higher YoY. S
Slide 7: Financial Highlights
Financial Highlights USD 4Q18 4Q19 Var. % 2018 2019 Var. % REVENUE (MM) 2,567 2,637 2.8% 10,495 10,684 1.8% OPERATING INCOME (MM) 799 830 4.0% 3,590 3,491 -2.8% EBITDA (MM) 1,157 1,163 0.6% 4,889 4,948 1.2% EBITDA MARGIN 45.1% 44.1% 46.6% 46.3% CASH COST 1.15 1.07 -6.8% 1.10 1.07 -3.7% DIVIDENDS PER
Slide 8: Company Highlights
Company Highlights Mi ning PRODUCTION RECORD SAN MARTIN RESTART TOQUEPALA EXPANSION & Mo. PLANT We are very proud to say that After 11 years of strike we are proud to Toquepala expansion increased this production reached 1,119,246 tons of say that after a major renovation of the mine’s copper produc
Slide 9: Grupo México maintains a solid balance sheet; Dividend Payments
Grupo México maintains Dividend Payments a solid balance sheet With a low leverage and a net debt to EBITDA ratio of 1.4x 6.0% 6.8% 7.1% 7.4% 6.73% 6.41% 5.7% 5.7% 81% of the debt is in US Dollars, and 19% in Mexican Pesos (MXN). 96% of the debt has a fixed rate. In addition, Grupo $0.80 $0.80 $0.80
Slide 10: Debt Maturity Profile
Debt Maturity Profile 1,700.0 1,500 1,500.0 1,300.0 1,200 1,111 1,100.0 1,016 1,000 900.0 768 700.0 593 543 509 500.0 376 300.0 171 130 146 105 100.0 47 56 60 64 15 16 17 18 19 19 0 0 0 0 0 0 0 US $MILLONES 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 203
Slide 11: Mining Division
Mining Division 11
Slide 12: Financial Highlights 2019
Financial Highlights 2019 US$7,966 billion SALES US$3,564million EBITDA The Mining Division’s annual sales were In line with 2018, with an 1% higher than in 2019, despite the EBITDA margin of 44.7% during decline in Copper, Zinc and 2019. The EBITDA for the 4Q19 Molybdenum prices. totaled US$809, al
Slide 13: Copper Market Outlook 2020
Copper Market Outlook 2020 ▪ During the 4Q19 the LME copper price decreased, from an average of $2.80 per pound in the 4Q18 to $2.67 (-4.6%). ▪ As of today we are seeing prices in the range of $2.55-2.60 per pound as a reflection of the worldwide concern regarding the effect of COVID-19 or Coronavir
Slide 14: Projects Update
Projects Update TOQUEPALA EXPANSION SAN MARTÍN ASARCO TACNA, PERÚ ZACATECAS, MÉXICO ARIZONA, U.S.A. This US$1.30 billion project includes a We have destined an investment budget of In spite of the strike of the unions Asarco new, state-of-the-art copper concentrator US$57 million. The concentrator r
Slide 15: Production Short Term Growth Profile
Production Short Term Growth Profile PILARES BUENAVISTA ZINC EL PILAR SONORA, MEXICO SONORA, MEXICO SONORA, MEXICO +35,000 tons Cu +20,000 tons Cu +35,000 tons Cu US $159 Million Total Capex +80,000 tons Zn US$ 259 Million Total Capex US$ 413 Million Total Capex Highlights: Highlights: ▪ Attractive
Slide 16: Transportation Division
455°: Transportation Division = GRUPOMEXICO
Slide 17: Financial Highlights 2019
Financial Highlights 2019 US$2,473 million in sales US$1,096 million in EBITDA A 4.8% increase vs 2018, An 8.2% increase from 3Q18, mainly driven by the due to operating Industrial, Agricultural and improvements. 4Q19 EBITDA Automotive segments. For the reached US$ 278 million, a 4Q19 sales reached
Slide 18: 2019 Highlights
2019 Highlights ▪ EBITDA Increase ✓ EBITDA increased 8.2% during 2019, reaching USD$ 1,096 million. ▪ Operating Metrics ✓ Solid improvement & stability in main operating metrics. ✓ Train speed improved 7.2% in 2019. ✓ Crew starts were down 9.3% in 2019. ▪ External Challenges that impacted Volume: ✓
Slide 19: Main Variations
Main Variations Revenue 4Q 2019 % Revenue Growth % of Growth 4Q ∆ Mix Metals: Reactivated import route, increase on scrap metal volumes and new metal structures High 11% 12% exports. 8% Cement: New movements from tuck to rail conversion. 7% Minerals: Recovered and increased iron ore volume and expor
Slide 20: CAPEX GMXT 2020
CAPEX GMXT 2020 (Million USD) Description CAPEX (MXN) Main Projects ▪ New Rail & Ties (1) ▪ Bridges MAINTENANCE ▪ Locomotive overhaul Surfacing $ 191.6 ▪ ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ Construction and reconfiguration of yards ▪ Transportation Management System EFFICIEN
Slide 21: Outlook - 2020
Outlook - 2020 C o nce pt 2020 Volume Growth 4% - 6% Revenue Growth 9% - 11% Operating Ratio 200 – 300 BP Capital Expenditures $ 466 Million USD Outlook Market Drivers 2020 Energy Increase of refined products imports. Metals Increase of flat steel imports and new truck to rail conversion. Intermodal
Slide 22: Infrastructure Division
Infrastructure Division = GRUPOMEXICO
Slide 23: Financial Highlights 2019
Financial Highlights 2019 US$583 million in sales US$279 million A decrease of 7% compared to EBITDA during 2019 increased 1% the previous year. vs 2018 with a margin of 47.9%. The For the 4Q19 sales reached 4Q19 EBITDA totaled US$73 a 6.3% US$153 million, 2.9% lower than decrease vs 4Q18, with a ma
Slide 24: Relevant Events
Relevant Events ENERGY GENERATION THE SALAMANCA-LEON HIGHWAY PEMSA 2019 EBITDA reached US$117 million During 2019, revenues totaled US$43 PEMSA ended the year with 6 oil rigs with a 51.9% margin, 390 basis million, EBITDA was 5% higher in operation and an average points higher than the 2018 EBITDA r
Slide 25: Q&A
Q&A