Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2019 Earnings Presentation
22 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, July 2019
Slide 1: 2nd Quarter Earnings Report 2019
2nd 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 and Schedule
Welcome Schedule 2 Q 1 9 Grupo Mexico’s main Main highlights of our highlights ………………………………………….…………4 Infrastructure Division …………………………19 Marlene Finny Francisco Zinser The Mining economic Q&A session …………………………………………22 environment of this quarter and the main issues impacting the Company’s profita
Slide 4: Main Highlights Grupo México 2Q19
Main Highlights Grupo México 2Q19 4
Slide 5: Scorecard
Scorecard Financial performance supports shareholder returns FINANCIAL HIGHLIGHTS 2 Q 1 9 • Consolidated sales reached US$2.72 billion during the 2Q19, 2% higher than in 2Q18, despite a decline in copper (-11%), zinc (-11%) and silver (-10%) prices. • EBITDA for 2Q19 totaled US$1.3 billion, in line
Slide 6: Main Highlights
Main Highlights PRODUCTION EBITDA Net Profit Income CAPEX 16% Accrued copper production US$1.3bn US$439 million 2Q18 US$276 Million in 2Q19 We continued our important reached 288,561 tons given 2Q19 growth and trust plan in the a rise in production at all 2Q18 countries where we operate our operatio
Slide 7: Grupo México maintains a solid balance sheet; Dividend Payments
Grupo México maintains a Dividend Payments solid balance sheet 6.0% 6.8% 7.1% 5.7% 5.7% 7.3% With a low leverage and a net debt to EBITDA ratio of 1.5x 80% of the debt is in US Dollars, and 20% in Mexican Pesos (MXN). $0.80 $0.80 $0.80 $0.80 91% of the debt has a fixed rate. In addition, Grupo Méxic
Slide 8: Debt Maturity Profile
Debt Maturity Profile 1,500.0 1,475 1,300.0 1,174 1,097 1,100.0 994 S00 850 [sais 756 500.0 15 16 16 7 18 (18 2033 2034 2035 2036 «2037 «2038 «2039 «2040 «2041 «2042 :«2043«2044 = 2045 3 re 2022 2023 2024 2025 100.0 US SMILLION mg Mining Division Transportation Division ug Infrastructure Division
Slide 9: Social Highlights Grupo México
Social Highlights Grupo México Hospital in Juchitán, Oaxaca Sustainable Development Through Fundación Grupo We have invested over US$950 México, we have implemented million in social, healthcare, and social, educational, security projects during the last environmental, cultural, and healthcare progr
Slide 10: Mining Division
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Slide 11: Financial Highlights 2Q19 - Mining
Financial Highlights 2Q19 US$2.02 billion in sales US$959 million The Mining Division’s sales were 2.0% EBITDA higher than in 2Q18, despite the decline in Copper, Zinc, and Silver implying 0.6% growth vs. 2Q18 with an EBITDA margin reached of prices. 47% in 2Q19. 288,561 tons US$189 million 16.3% mo
Slide 12: Copper Outlook 2019
Copper Outlook 2019 During 2Q19, LME copper prices have decreased, from an average of $3.12 per pound in the 2Q18 to $2.77 (-11%) per pound in the 2 Q 1 9 2Q19. We believe the fall in prices since the 2H18 reflected the sentiment of a possible slowdown in the World economy, concerns on Brexit and tr
Slide 13: Our Projects
Our Projects TOQUEPALA TIA MARIA SAN MARTÍN BUENAVISTA EXPANSION AREQUIPA, PERU ZACATECAS, MEXICO ZINC TACNA, PERU SONORA, MEXICO This US$1.3 billion project On July 8th 2019, we received the We continue with the works to We are building a concentrator includes a new, state-of-the-art construction p
Slide 14: Transportation Division
455°: Transportation Division Sit) GRUPOMEXICO TRANSPORTES
Slide 15: Financial Highlights 2Q19 - Transportation
Financial Highlights 2Q19 US$636 million US$293 million in sales in EBITDA A 5.8% increase vs 2018, mainly driven by the Automotive and A 10% increase from 2Q18, due to Industrial segments. continued operating improvements. 1.1% higher Net Income Decreased 11.5%; Affected by a rise in transportation
Slide 16: Main Variations
Main Variations Revenue 2Q 2019 % Revenue Growth % of Growth 2Q ∆ Mix 24% Automotive: Increased exports of new vehicles due to stronger demand on the US West Coast. High 22% 18% Industrial: Finished goods exports to US destinations. Increased imports of waste paper. Increased beer exports 8% Chemica
Slide 17: Outlook
Outlook Volume Growth 2 % - 4% 2019 Revenue Growth 7% - 10% Operating Ratio 150 - 200 BP $ 406 Million USD >15.5% of Capital Expenditures revenue trought 2019 Outlook 2019 Outlook Market Drivers This year’s re-tooling will be finished during September and October and will shift model platforms to SU
Slide 18: Capital Expenditures
Capital Expenditures Infraestructure 2019 CAPEX Description Million (MXN) Main Projects ‒ New Rail & Ties / bridges maintenance ‒ Technology and equipment $ 9,049.9 ‒ Monterrey and Piedras Negras Yards ORIGINAL ‒ Celaya and Monterrey bypass ‒ Locomotive overhaul ‒ Intermodal ramps SAVINGS $(1,123.7)
Slide 19: Infrastructure Division
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Slide 20: Financial Highlights 2Q19 - Infrastructure
Financial Highlights 2Q19 US$68 million US$137 million EBITDA during 2Q19 reached an 5% decrease vs 2Q18. The YTD in sales EBITDA at the end of the 2Q19 was US$132.8 a 1% increase vs A decrease of 19.2% 2018. compared to the previous year US$17 million Net Profit YTD at the end of 2Q19, showed a 22.
Slide 21: Relevant Events
Relevant Events ENERGY THE SALAMANCA- CRUDE OIL DIVISION GENERATION LEON HIGHWAY (PEMSA) During 2Q19, 898,269 MWh were During 2Q19, revenues totaled $198 The petroleum division PEMSA closed the generated vs. 979,187 in the same million pesos—5% more than in the quarter with 6 rigs in operation and a
Slide 22: Q&A
Q&A