Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q4 2018 Earnings Presentation
27 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2019
Slide 1: 4th Quarter and Annual Earnings Report 2018
4th Quarter and Annual 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 4 Q 1 8 Grupo Mexico’s main Main highlights of our highlights ………………………………………….…………4 Infrastructure Division …………………………23 Marlene Finny Octavio Ornelas The Mining economic Q&A session …………………………………………27 environment of this quarter and the main issues impacting the Company’s profitab
Slide 4: Main Highlights Grupo México 4Q18
Main Highlights Grupo México 4Q18 4
Slide 5: Scorecard
Scorecard Financial performance supports shareholder returns 4 Q 1 8 FINANCIAL HIGHLIGHTS • Accrued consolidated sales reached US$10.49 billion in 2018, a record figure since 2011, and 7% higher than in 2017 • EBITDA for 2018 was US$4.9 billion, 8% higher than in 2017 SHAREHOLDER RETURNS • On Januar
Slide 6: Main Highlights
Main Highlights SALES EBITDA Net Profit Income CAPEX 7% US$4.9bn US$1.1bn 12% Consolidated revenues CAPEX reached US$1.68 reached US$10,495 a bn in 2018. Proving our 0 230 460 690 commitment to growth and record figure since 2011. value generation. 0 0.65 1.3 1.95 Net Income for 2018 was 25% lower t
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 1.4x 6.8% 7.1% 80% 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 $0.80 comfortable debt payment sc
Slide 8: Debt Maturity Profile
US SMILLONES 500.0 ,300.0 ,100.0 900.0 700.0 500.0 300.0 100.0 100.0 Debt Maturity Profile 1,475 1,174 1,096 994 747 792 _—_ [ox 559 a 188 | ad a i 53 55 59 64 14.15 17 17 17 18 0 0 0 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2
Slide 9: Relevant Events Grupo México
Relevant Events Grupo México Buybacks Given our trust in the outlook for Hospital in our divisions, during 4Q18 we Juchitán, Oaxaca carried out stock buybacks for the first time since 2011, to keep generating value for our Through Fundación Grupo shareholders. México, we have implemented social, edu
Slide 10: Organizational Changes
Organizational Changes As of Jan 1 2019, we have strengthened our team with some additions from outside our Company and some from within: Mining Division Ramón Leal Chapa - Chief Financial Officer of AMC Bachelors degree in Accounting from Universidad de Monterrey (UDEM). Holds a Master's degree in
Slide 11: Mining Division
Division == GRUPOMEXICO MINERIA Sit)
Slide 12: Financial Highlights
Financial Highlights US$7.88 billion in sales US$3.55 billion In 2018 , the Mining Division reached EBITDA 10% increasing sales vs. 2017. Due to higher metal prices for copper Implying 3% growth vs 2017 with an EBITDA margin reached of 45% (+4.6), Zinc (+1.5), and Molybdenum in 2018. (46%). 1,002,06
Slide 13: Copper outlook
Copper outlook During 2018, LME copper prices have increased, from an average of 4 Q 1 8 $2.80 per pound in 2017 to $2.96 (+5.9%) per pound in 2018. We expect a growth in copper prices in the coming months because the copper market fundamentals are solid and the start of dialogue between the US and
Slide 14: 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 fulfilled Peru´s government We have continued works to Construction of a concentrator includes a new, state-of-the-art engineering and env
Slide 15: Our Projects
Our Projects PILARES SONORA, MEXICO 4 Q 1 8 An open pit mine with an annual production capacity of 35,000 tons of copper concentrates. The high ore grade mineral will be transported to feed the main crushers of the La Caridad concentrator, improving the average ore grade (0.78% expected at Pilares v
Slide 16: Transportation Division
455°: Transportation Division Sit) GRUPOMEXICO TRANSPORTES
Slide 17: Financial Highlights
Financial Highlights US$2.36 billion US$1.01 billion in sales in EBITDA A 15% increase vs 2017, due to stronger operations in Mexico, A 16% increase from 2017 with margin driven mainly by the Chemicals, expansion of 1 bp vs last year, due to Agricultural, Industrial, and Minerals continued operating
Slide 18: Main Variations
Main Variations % Revenue Growth 26% Metals: New routes due to truck conversions 21% Agricultural: Grain imports increased, including record volume of unitary and shuttle trains in May High 44% 19% Chemicals: Recovered traffic after controlling security breaches 16% Energy: New routes due to imports
Slide 19: Full Year Overview
Full Year Overview ▪ During 2018 we managed to deliver on top-line revenue achieving: ▪ $45,431 million pesos an increase of 18% over 2017 ▪ Our 2018 EBITDA reached $19,485 million pesos, an 18% improvement vs 2017. ▪ We faced many external challenges such as weather, theft, vandalism and blockades.
Slide 20: Precision Scheduled Railroad (PSR)
Precision Scheduled Railroad (PSR) Processes 1) Increase Train Length, Network Fluidity and Speed. Manifest over dedicated services. 2) Decrease Dwell Time at Terminals. Less switches, more outbound train alternatives. 3) Maximize Horsepower Utilization. Work locomotives at least 80% of the day and
Slide 21: 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 ‒ CTC implementation (sig
Slide 22: Outlook
Outlook 2019 Fina ncia l Outlook - 2 0 1 9 Volume Growth 4% - 6% Revenue Growth 9% - 12% Operating Ratio 150 - 200 BP Capital $406 Million USD Expenditures >15.5% of revenue through 2019 Outlo o k 2019 Outlook Mark et Drivers Coa l & Fue ls: Increase in imports of fuels and coal Energy Crud e oil: I
Slide 23: Infrastructure Division
== GRUPOMEXICO Ne inrracstauctua
Slide 24: Financial Highlights
Financial Highlights US$270 million EBITDA during 2018, that´s a 24% US$625 million increase than in 2017. An all-time high consolidated sales, reaching 8% more than in the previous year. US$47.3 million Net Profit income in 2018 a 305% YOY increase. 24
Slide 25: Relevant Events
Relevant Events NEW RECORD IN NEW RECORD FOR PROGRESS ON MEXICO ENERGY THE SALAMANCA- COMPAÑÍA GENERATION LEON HIGHWAY CONSTRUCTORA PROJECTS During 2018, 3,929,048 MWh were During 2018, the highway reported Progress has reached 72% vs. 60% generated, with an average power of P$768 million in net sal
Slide 26: Relevant Events
Relevant Events OPERATIONS OF CHIHUAHUA, CAMPECHE, NEW ENERGY PROJECTS SILAO BYPASS AND TABASCO RIGS, AND AND TERMINALS VERACRUZ AND TAMAULIPAS MODULAR PLATFORMS In 2018, the deed of concession was The Crude Oil Division (PEMSA) ended the Through the new subsidiary of fuel signed to build, operate,
Slide 27: Q&A
Q&A