GMéxico Transportes, S.A.B. de C.V. ( GMXT - BMV: GMXT*).

Transcription

1 Mexico City, February 2, 2018 GMéxico Transportes, S.A.B. de C.V. ( GMXT - BMV: GMXT*). During 2017, GMXT achieved record EBITDA of P$16,526 million, translating into 14.4% growth vs This followed the consolidation of two quarters of results from Florida East Coast (FEC), and sound results from the rest of its operations. FEC Acquisition.- On June 30, 2017, the acquisition of FEC was completed. This is an important strategic addition for GMXT in its transportation service portfolio in North America, providing it with access to one of the most important markets on the Continent. This transaction also gives GMXT greater geographic diversification and expands the industries it serves, while furnishing it with access to technological advances and better productivity and service practices. Record Revenues.- Revenues grew 17.2% vs. 2016, mainly driven by the Intermodal and Minerals segments. Volumes in net ton-km increased 7% vs. 2016, while carloads grew 21.5%, given the acquisition of FEC and higher volumes in its Mexican operations. Intermodal had an accumulated growth of 75% in revenues due to a greater number of containers hauled, mainly in the domestic traffic of consumer goods and the consolidation of volumes from the Florida operations. Minerals accumulated a 35% growth in revenues. This growth was due to an increase in the volumes of fracturing sand, iron ore, and copper concentrates hauled. Net Income.- Net income was mainly affected by an increase of P$1,026 million in interest paid due to higher debt and an increase of P$336 million in income tax due to a non-recurring deduction for 2016, which was offset by a positive impact of deferred income tax for P$584 million. 4T17 1

2 Operating Improvements.- GMXT continues to improve its results in terms of safety and productivity. The review of safety policies and processes made it possible to reduce the Accident Rate by 31.0%, reaching the lowest level in the company s history. Fuel yield improved 8.0%, making it possible to counter the effect of the 20.6% increase in fuel prices. Train Speed rose 20.2%, given the implementation of train load consolidation strategies, as well as the measures implemented to eradicate theft and vandalism. GMXT s Initial Public Offering.- On November 9, 2017, Grupo México Transportes announced its IPO on the Mexican Stock Exchange under the ticker GMXT ( GMXT* ). The successful transaction showed a demand overhang of 2.5x the base offer, reflecting the Company s sound balance sheet, growth potential, and fundamentals. Grupo Mexico s Transportation Division s IPO is the largest transportation offer made in the LATAM region, as well as the largest IPO in Mexico in the last five years. Dividend.- A Shareholders Meeting shall be convened for the approval of the cash dividend declared by the Management Board on January 30, 2018, worth $0.15 pesos per share outstanding, to be paid in a single installment as of February 27, Fourth Quarter Variance January - December Variance Million Mexican Pesos US$000 % US$000 % Load Volume (MillionTons/Km) 13,447 15,551 2, ,215 59,105 3, Moved Cars 357, , , ,423,847 1,729, , Sales 8,261 10,863 2, ,905 38,577 5, Cost of Sales 4,887 6,266 1, ,555 21,871 3, Operating Income 2,238 2, ,819 10, EBITDA 3,804 4, ,441 16,526 2, EBITDA Margin (%) 46.0% 42.2% 43.9% 42.8% Net Income 2,229 1,965 (264) (11.8) 8,407 7,696 (711) (8.5) Profit Margin (%) 27.0% 18.1% 25.5% 19.9% 4T17 2

3 Results by Segment Contribution by segment in terms of revenues, net ton-km, and carloads up to December 31, 2017: For the fourth quarter Segmento Revenues Carloads Revenues Carloads Agricultural $2,669 $2,390 72,959 62,229 $10,323 $9, , ,919 Minerals $1,267 $860 59,463 31,966 $4,347 $3, , ,430 Energy $805 $653 26,388 24,480 $3,018 $2, ,405 95,745 Automotive $1,166 $990 41,624 39,434 $4,340 $3, , ,245 Metals $441 $561 18,839 23,389 $2,027 $2,229 85,683 97,084 Cement $468 $350 27,224 23,090 $1,701 $1,342 99,925 91,718 Chemicals $806 $692 20,007 16,765 $3,082 $2,762 74,709 66,610 Industrial $755 $739 32,341 28,896 $2,933 $3, , ,733 Intermodal (Containers) $1,634 $ , ,994 $4,525 $2, , ,363 Total 10,010 7, , ,243 $36,295 $31,664 1,729,818 1,423,847 Other revenues $852 $340 $2,282 $1,241 Total at December 31 $10,862 $8,261 $38,577 $32,905 For the year Revenues per Segment Tons Km 4T17 3

4 Key Metrics We report our key operating metrics on a consolidated level up to December 31, 2017: Key Metrics Var % 2017 vs 2016 Net Ton-km (millions) 55,216 59, % Employees 10,048 11, % Fuel Consumption (million liters) % Average fuel price (MX$/liter) % Liters of fuel consumed per 1000 GTKs % Average Train Speed (kilometers per hours) % Accident Rate (per 200,000 person hours) % 4T17 4

5 Conference call to discuss the results of the fourth quarter 2017 GMéxico Transportes, S.A.B. de C.V. ( GMXT - BMV: GMXT*). Will hold its conference call to comment on the results for the fourth quarter of 2017 with the financial community on February 08, 2018 at 11 am (Mexico time). A Q&A session for analysts and investors shall follow the call. To participate, please dial in 10 minutes before the start of the conference call: (Participants in Mexico) (001) (Outside Mexico) Confirmation code: A repetition of the call shall be available 2 hours following the end of the call and until February 22, (888) (participants from the US) (630) (Participants outside the US) Confirmation code: # 4T17 5

6 Financial Statements GMÉXICO TRANSPORTES, S.A.B. DE C.V. (GMXT) CONDENSED FINANCIAL STATEMENTS (IFRS) (In million of Mexican Pesos) STATEMENT OF INCOME Variance Revenues 10,863 8,261 2,602 31% 38,577 32,905 5,672 17% Operating Cost 6,266 4,887 1,379 28% 21,871 18,555 3,316 18% Marginal contribution 4,597 3,374 1,223 36% 16,706 14,350 2,356 16% Gross margin 42% 41% 43% 44% Administrative expenses % 1,514 1, % Employee profit sharing % % Other revenues (42) (122) 80-66% (153) (217) 64-29% EBITDA 4,585 3, % 16,526 14,441 2,085 14% Depreciation and amortization 1, % 3,917 2,865 1,052 37% Operating profit 2,679 2, % 10,506 9, % Operating margin 24.7% 27.1% 27.2% 29.8% Interest expenses % 1, , % Interest earned (50) (52) 2-4% (195) (194) (1) 1% Exchange loss - net (219) (73) (146) 200% 442 (189) % Equity in net income in associated companies (28) (28) - (83) (73) (10) 14% Incom e before taxes 2,256 2,285 ( 29) -1% 8,912 9,871 ( 959) -10% Income Tax % 1,216 1,464 (248) -17% Net incom e 1,965 2,229 ( 264) -12% 7,696 8,407 ( 711) -8% Noncontrolling interest (424) (444) 20-5% (1,729) (1,730) 1 0% Net incom e attributed to controlling interest 1,541 1,785 ( 244) # DIV/0! -14% 5,967 6,677 ( 710) # DIV/0! -11% BALANCE SHEET Cash and cash equivalents 6,642 7,887 (1,245) -16% 6,642 7,887 (1,245) -16% Accounts receivable 5,737 3,666 2,071 56% 5,737 3,666 2,071 56% Inventories % % Prepaid expenses and other accounts receivable % % Total Current Assets 13,970 12,838 1,132 9% 13,970 12,838 1,132 9% Property, machinery, equipment and concessions Net 71,469 37,078 34,391 93% 71,469 37,078 34,391 93% Goodwill 15, , % 15, , % Other assets 1,519 1, % 1,519 1, % Total Assets 102,115 51,743 50,372 97% 102,115 51,743 50,372 97% Liabilities and Stockholders Equity 4Q Accum ulated Variance Current portion of long - term debt 11, , % 11, , % Accrued expenses 5,771 3,659 2,112 58% 5,771 3,659 2,112 58% Total current liabilities 17,059 3,839 13, % 17,059 3,839 13, % Long - term debt 20,188 5,349 14, % 20,188 5,349 14, % Long - term accrued expenses 8,961 1,949 7, % 8,961 1,949 7, % Employee retirement obligations % % Total liabilities 46,398 11,251 35, % 46,398 11,251 35, % Other comprehensive income 11, , % 11, , % Retained earnings 36,271 31,781 4,490 14% 36,271 31,781 4,490 14% Total stockholders' equity 47,648 32,652 14,996 46% 47,648 32,652 14,996 46% Non - controlling interest 8,069 7, % 8,069 7, % Total Liabilities and Stockholders Equity 102,115 51,743 50,372 97% 102,115 51,743 50,372 97% 4T17 6

7 GMÉXICO TRANSPORTES, S.A.B. DE C.V. (GMXT) CONDENSED FINANCIAL STATEMENTS (IFRS) (In million of Mexican Pesos) 4Q Accum ulated CASH FLOWS Variance Variance Incom e before taxes 2,256 2,285 ( 29) -1% 8,912 9,871 ( 959) -10% Depreciation and amortization 1, % 3,917 2,865 1,052 37% Equity in net income of associated company (28) (28) - (83) (73) (10) 14% Others - Net 9 (5) % (34) (29) (5) 17% Changes in assets and liabilities 1, % 158 (1,193) 1, % Net cash provided by operating activities 4,804 3,408 1,396 41% 12,870 11,441 1,429 12% Acquisition of property and equipment (1,626) (2,338) % (5,323) (6,702) 1,379-21% Purchase of shares FEC (35,963) - (35,963) Dividends received % % Others - Net % % Net cash used in investing activities ( 1,566) ( 2,303) % ( 40,939) ( 6,402) ( 34,537) 539% Proceeds from bank financing ,284-42,284 Amortization of bank loan (12,275) (46) (12,229) 26585% (18,321) (272) (18,049) 6636% IPO proceeds 8,357-8,357 8,357-8,357 Dividends paid (2,971) (2,274) (697) 31% Others - Net (2,183) (190) (1,993) 1049% (2,525) (371) (2,154) 581% Net cash used in financing activities ( 6,101) ( 236) ( 5,865) 2485% 26,824 ( 2,917) 29, % Increase ( decrease) in cash ( 2,863) 869 ( 3,732) -429% ( 1,245) 2,122 ( 3,367) -159% Cash at beginning of the period 9,505 7,018 2,487 35% 7,887 5,765 2,122 37% Cash at the end of the period 6,642 7,887 ( 1,245) -16% 6,642 7,887 ( 1,245) -16% 4T17 7