Corporate Presentation May, 2014

Transcription

1 Corporate Presentation May, 2014

2 Grupo Carso in brief Leading conglomerate in Mexico with diversified operations 3 business sectors: Retail, Industrial and Infrastructure. With well-known brands and formats such as: Sears, Sanborns, Ishop/MixUp, Saks Fifth Avenue Condumex, Promotora de Partes Electricas, Sinergia and Microm Servicios Integrales GSM, Swecomex, CILSA Figures (mm) 2013 MXN USD Net Sales: $85,871 $6,726 EBITDA: $18,600 $1,457 Assets: $85,930 $6,730 CapEx 2013: USD $180 mm Market Cap May-14: USD $11.3 Billion Employees 2013: 70,000 Note: Forex rate MXN/USD price of shares May 2014 $67.97 Ps

3 Business Segments Industrial and Manufacture Retail and Consumption Infrastructure and Construction Telecom Construction Energy Automotive Restaurant Department Stores Entertainment Stores Civil Construction Manufacture and Services for the Oil&Chemical Ind. Infrastructure Ducts Installation Housing

4 Recent Events Appointment of CEO Gcarso announced on April, 2014 the appointment of Mr. Antonio Gómez García, currently CEO of CICSA and Condumex, as the new CEO of Grupo Carso, substituting Mr. José Gutiérrez-Olvera, who decided to take his retirement, but will remain part of the Board of Directors. Transaction of Philip Morris shares On September 30, 2013 GCARSO announced that it had finalized the process to sell to Philip Morris International, INC. ("PMI") the remaining 20% of its equity stake in Philip Morris Mexico S.A. de C.V. (PMM), which is a subsidiary of PMI dedicated to the tobacco industry in Mexico. The price of the sale was approximately USD $703 million and is subject to a potential adjustment process that will reflect PMM s performance during a three year period that shall end two years following the conclusion of the sale. As a result of the transaction, PMI has acquired 100% of PMM. Leasing of Independencia I oil JackUp On May 7 th, 2013, Grupo Carso announced a lease agreement with Pemex Exploración y Producción (PEP), without purchase Option of a Jack-Up Offshore Drilling Rig named Independencia 1. The agreement includes the complete maintenance of this rig and shall be used by PEP to drill for oil in Mexican waters of the Gulf of Mexico. The agreement shall be effective for seven years and its sum shall total up to $415 million USD. The Jagüeyes 3432 B was a discovery well for oil On July 2, 2013 GCARSO informed that Tabasco Oil Company LLC (TOC) concluded the first exploratory well of the Jagüeyes 3432-B program in the Llanos Orientales Plains of northeastern Colombia; therefore, the production testing shall start to confirm the economic viability. Grupo Carso through its Carso Energy subsidiary participates in 70% of the capital of TOC.

5 Outstanding Figures 2013 Million Pesos * Var Sales 64,196 78,678 83,316 85, % Operating Income 6,887 6,918 9,103 17, % Op Mg 10.7% 8.8% 11.0% 20.1% 9.1pp EBITDA 8,204 8,310 10,535 18, % EBITDA Mg 12.8% 10.6% 12.6% 21.7% 9.1 pp Controlling Net Income 7,092 4,321 7,640 13, % Total Assets 81,464 72,822 76,558 85, % Stockholder s Equity 31,715 43,764 41,881 56, % Note: Includes $7,589 mm Ps as Other Income from the sale of Philip Morris Mexico as well as $210 mm Ps from appraisal of investment properties. 150, ,000 50,000 0 Sales in million pesos 78,678 83,316 85,871 89,306 56,793 64, e 5 year margin history Op Mg EBITDA Mg e

6 Contribution to 2013 results Retail and Consumption Grupo Sanborns Million Ps Var% Sales 36,416 39,411 40, % Op Inc 4,302 4,566 5, % EBITDA 4,917 5,226 5, % Op Mg 11.8% 11.6% 12.4% EBITDA Mg 13.5% 13.3% 13.6% Industrial and Manufacture Grupo Condumex Million Ps Var% Sales 28,793 27,415 26, % Op Inc 1,847 2,211 1, % EBITDA 2,249 2,571 2, % Op Mg 6.7% 8.0% 6.6% EBITDA Mg 8.1% 9.4% 8.0% Infrastructure and Construction CICSA Million Ps Var% Sales 14,349 16,670 18, % Op Inc 848 2,255 2, % EBITDA 1,137 2,738 3, % Op Mg 5.9% 13.5% 15.0% EBITDA Mg 7.9% 15.6% 17.4% Other & Elim -0.2% Gcondum,.311% 2013 Revenue Breakdown CICSA, 21.9% Gsanborn 47.2% Op. Income Breakdown 2013 CICSA 29.7% GCondu 18.8% GSanbo 50.6% Other & elim 0.9% Note: Does not include extraordinary income of $7,589 mm Ps from the sale of Philip Morris Mexico as well as $210 mm Ps from appraisal of investment properties.

7 Financial Situation EBITDA Million Pesos Net Debt 18,601 12,118 10,535 8,989 9,328 8,204 8,310 7,468 6,766 5,752-1,671-4, e 5,000 4,000 3,000 2,000 1,000 0 CapEx by Business Segment 3,877 2,773 3, , , , , ,500 1, e Gsanborns GCondumex CICSA Total Debt by CURRENCY (Includes ForEx Hedges) Pesos 84% Total bank Debt by TERM Dollars 16% ,572 4,172 CapEx in Million Pesos 4,949 3,877 3,461 2,773 1,791 2,347 3,300 Long T 65% Short T 35% e

8 Retail and Consumption Grupo SANBORNS (47% of consolidated sales 2013) Has nationwide presence through its retail formats Grupo Sanborns 2013 Revenue Breakdown Sanbo 29.5% Other 5.1% ishop/ Mix 11.1% Sears 53.7% ishop/ M 6.4% Sanbo 18.7% Grupo Sanborns 2013 EBITDA Breakdown Sears 54.4% Other 20.5% Grupo Sanborns Million Ps Var% Sales 36,416 39,411 40, % Op Inc 4,302 4,566 5, % EBITDA 4,917 5,226 5, % Op Mg 11.8% 11.6% 12.4% EBITDA Mg 13.5% 13.3% 13.6%

9 Industrial and Manufacture Grupo CONDUMEX (31% of consolidated sales 2013) Industrial conglomerate focused mainly in the Telecom, Energy, Construction and Mining sectors. Markets: Mobile and Traditional telephone companies in LatAm; Heavy building construction; House remodeling; Energy companies; Revenue Breakdown by Business Sector Var% 2013 vs Telecom -6.2% Automotive 17.8% Constr. and Energy -2.7% Industrial Metals -3.3% Main Brands: Revenue Breakdown 3Q13 Telecom 16% Constru 58% Autom 26% Grupo Condumex Million Ps Var% Sales 28,793 27,415 26, % Op Inc 1,847 2,211 1, % EBITDA 2,249 2,571 2, % Op Mg 6.7% 8.0% 6.6% EBITDA Mg 8.1% 9.4% 8.0%

10 Infrastructure and Construction Carso Infraestructura y Construcción (22% of consolidated sales 2013) CICSA is one of the largest infrastructure and construction companies in Mexico servicing 5 main business sectors: 1. Manufacturing and Services for the Oil & Chemical Industry; 2. Ducts Installation; 3. Infrastructure Projects; 4. Civil Construction 5. Housing CICSA Million Ps Var% Sales 14,349 16,670 18, % Op Inc 848 2,255 2, % EBITDA 1,137 2,738 3, % Op Mg 5.9% 13.5% 15.0% EBITDA Mg 7.9% 15.6% 17.4% 2013 Sales Breakdown by sector Housing 1.0% Other and Elim 21.1% Ducts Install 20.6% Infraest 16.3% Manuf and Serv for Oil&Ch 33.2% Civil C 7.7% 2013 Op. Income Breakdown by sector Civil -0.5% Infrastr 22.3% Housing -8.2% Ducts Install 30.3% Manuf and Serv 48.1% Others & Elim 1.4%

11 CICSA s Financial Position Backlog $17,361 MM Ps 2013 Ducts 686,547 Civil Const 3,321,655 Infrastr 7,701,327 Housing 75,914 Manuf and Services for Oil &C 5,575,703 Independencia I Oil Jack-Up Main projects for CICSA: Water sewage system (Tunel Emisor Ote); Plaza Carso multiple use complex, second phase; Drilling of oil wells in the Southeast of the country; Telecom and natural gas ducts installation; Acueduct and water treatment plants (Atotonilco); Bypass roads in the Northeast of the country

12 Investment Thesis Dynamic conglomerate that adapts its business portfolio quickly to take advantage of economic cycles, market tendencies and business opportunities; Focus on industries where its divisions have strong competitive position; Retail sector with well-known formats and nationwide presence; Innovation in products, engineering and construction processes; Exemplary use of resources and technology; Sound growth record; Value creation for shareholders; Sound corporate governance;

13 Gallery of Projects Guadalajara By-pass road Culiacan By-pass road CFE Solar Panels built by Condumex Atotonilco Waste water Plant Oil Drilling Sears Nuevo Veracruz

14 Gallery of Projects Star Medica Hospital Swecomex Platform Construction TEO Emisor Oriente Water Sewage Tunnel (TEO) Nuevo Veracruz Shopping Center

15 Forward Looking Statements: Certain statements in this corporate presentation may be related to expectations about future events of Grupo Carso. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Grupo Carso undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this presentation. For more information: Jorge Serrano T. +52 (55) xt jserranoe@inbursa.com Angélica Piña T. +52(55) napinag@condumex.com.mx Trading Symbol: MSE: GCARSO A-1 OTC: GPOVY 2:1