Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q3 2019 Earnings Presentation
26 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2019
Slide 1: 3rd Quarter Earnings Report 2019
3rd QUARTER Earnings Report 2019
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 3Q19
Schedule 3Q19 04 Grupo Mexico’s main highlights Marlene Finny 10 The Mining economic environment of this quarter and the main issues impacting the Company’s profitability Xavier García de Quevedo Oscar González 14 Main highlights of our Transportation Division Fernando López Guerra 21 Main highlight
Slide 4: Main Highlights Grupo México - 3Q19
MAIN HIGHLIGHTS GRUPO MÉXICO - 3Q19 4
Slide 5: Scorecard 3Q19
Scorecard 3Q19 Financial performance supports shareholder returns FINANCIAL HIGHLIGHTS ▪ Sales reached US$2.79 billion during the 3Q19, 7.7% higher than 3Q18, in spite of lower copper (-5%) and zinc (-7.4%) prices. ▪ EBITDA for 3Q19 totaled US$1.25 billion, 7.9% higher YoY. SHAREHOLDER RETURNS ▪ The
Slide 6: Financial Highlights
Financial Highlights USD 3Q18 3Q19 Var. % YTD18 YTD19 Var. % REVENUE (MM) 2,595 2,794 7.7% 7,928 8,046 1.5% OPERATING INCOME (MM) 846 883 4.4% 2,792 2,661 -4.7% EBITDA (MM) 1,157 1,248 7.9% 3,732 3,784 1.4% EBITDA MARGIN 44.6% 44.7% 47.1% 47.0% CASH COST 1.17 1.06 -9.2% 1.10 1.07 -2.5% DIVIDENDS PER
Slide 7: Company Highlights
Company Highlights Mi ning ISSUANCE MINERA MEXICO SAN MARTIN PRODUCTION TOQUEPALA Mo. PLANT US$ 1 Billion After 11 years of strike we are proud to We have been able to increase our 4.50% say that after a major renovation of the Molybdenum production by 40% 30 year term (due 2050) San Martin operatio
Slide 8: Social Highlights Grupo México
Social Highlights Grupo México Hospital in Dr. Vagón Juchitán, Oaxaca We proudly announce that the opening of “Dr. Vagón Through Fundación Grupo México, we have Quirofano” providing operating rooms for minor procedures that implemented social, will compliment services and educational, environmental,
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% 5.7% 5.7% 82% of the debt is in US Dollars, and 18% in Mexican Pesos (MXN). 96% of the debt has a fixed rate. In addition, Grupo $0.80 $0.80 $0.80 $0.80
Slide 10: Debt Maturity Profile
Debt Maturity Profile 1,500 1,500.0 1,300.0 1,200 1,110 1,100.0 1,015 1,000 900.0 739 700.0 591 579 543 500.0 363 300.0 126 142 91 105 100.0 46 55 59 64 33 16 16 17 18 18 14 0 0 0 0 0 0 0 US $MILLONES 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038
Slide 11: Mining Division
Mining Division 11
Slide 12: Financial Highlights 3Q19
Financial Highlights 3Q19 US$2.08 billion in sales US$885 million EBITDA The Mining Division’s sales were implying a 6.5% growth vs. 8.4% higher than in 3Q18, despite 3Q18 with an EBITDA margin of the decline in Copper and Zinc 42.5% during the quarter and prices. 45.7% year to date. 286,335 tons US
Slide 13: Copper Market Outlook 2019-2020 3Q19
Copper Market Outlook 2019-2020 3Q19 ▪ During the 3Q19 the LME copper price decreased, from an average of $2.77 per pound in the 3Q18 to $2.63 (-5.1%). ▪ We see a fair physical market for copper, but we believe the fall in prices is now reflecting a slowdown of the World economy, strongly related wi
Slide 14: Projects Update
Projects Update TOQUEPALA EXPANSION SAN MARTÍN ASARCO TACNA, PERU ZACATECAS, MEXICO ARIZONA, U.S.A. This US$1.30 billion project includes a We have destined an investment budget of We remain focused on improving human new, state-of-the-art copper concentrator US$87 million. The concentrator restarte
Slide 15: Tía María
TÍA MARÍA Opposition Groups: AREQUIPA, PERU ▪ Environmentalist Groups ▪ Agricultural Businessmen Groups ▪ Political Groups July 8th CONSTRUCTION LICENSE OBTAINED ▪ This permit was obtained after completing an exhausting review process, complying with all established regulatory requirements and addre
Slide 16: Production Short Term Growth Profile
Production Short Term Growth Profile TIA MARIA PILARES BUENAVISTA ZINC EL PILAR AREQUIPA, PERU SONORA, MEXICO SONORA, MEXICO SONORA, MEXICO +120,000 tons Cu +35,000 tons Cu +20,000 tons Cu +35,000 tons Cu US $1.4 Billion Total Capex US $159 Million Total Capex +80,000 tons Zn US$ 259 Million Total C
Slide 17: Transportation Division
455°: Transportation Division = GRUPOMEXICO
Slide 18: Financial Highlights 3Q19
Financial Highlights 3Q19 US$643 million in sales US$278 million in EBITDA A 6.4% increase vs 2018, A 4.7% increase from 3Q18, mainly driven by the due to operating Industrial, Agricultural and improvements. Year to date Automotive segments. EBITDA reached US$ 818 million, a 8.3% increase YoY. 3% hi
Slide 19: Third Quarter Highlights
Third Quarter Highlights ▪ Operating Metrics ✓ Solid improvement & stability in main operating metrics. ▪ External Challenges that impacted Volume: ✓ Hurricane Dorian that struck Florida forced us to close our operations for 6 days, impacting overall volume. ✓ Lower volume of steel and mineral movem
Slide 20: Main Variations
Main Variations Revenue 3Q 2019 % Revenue Growth % of Growth 3Q ∆ Mix 18% Industrial: Higher exports of finished goods to the US. High 33% 14% Agricultural: Strong increase of imports into Mexico and local crop movements. 10% Energy: Strong increase in volume and pricing of imported refined products
Slide 21: Productivity
Productivity Processes 1) Increase Train Length, Network Fluidity and Speed 2) Decrease Dwell Time at Terminals 3) Maximize Horsepower Utilization 4) Balance Trains in each direction 5) Clear Workflow Processes Target savings on annual basis: ▪ Reduce crew starts ▪ Fuel efficiency improvement ▪ Decr
Slide 22: CAPEX GMXT 2020
CAPEX GMXT 2020 (Million MXN) Description CAPEX (MXN) Main Projects ▪ New Rail & Ties (1) ▪ Bridges ▪ Locomotive overhaul MAINTENANCE $ 3,842.5 ▪ Surfacing ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ Construction and reconfiguration of yards ▪ Transportation Management System EFFICI
Slide 23: Infrastructure Division
Infrastructure Division = GRUPOMEXICO
Slide 24: Financial Highlights 3Q19
Financial Highlights 3Q19 US$148 million in sales US$74 million A decrease of 4.5% compared to EBITDA during 3Q19 reached an the previous year 8.5% increase vs 3Q18 with a margin of 49.8%. The YTD EBITDA was US$207 a 3.5% increase vs 2018, translating in margin of 48.1%. US$20 million Net Profit YTD
Slide 25: Relevant Events
Relevant Events ENERGY GENERATION THE SALAMANCA-LEON HIGHWAY PEMSA Year to Date EBITDA reached During 3Q19, revenues totaled PEMSA closed the quarter with 6 oil US$92.00 million and achieved a $189.5 million pesos—3% higher rigs in operation and an average 55.5% margin, 850 basis points than in the
Slide 26: Q&A
Q&A