GRUPO INDUSTRIAL SALTILLO

Transcription

1 GRUPO INDUSTRIAL SALTILLO 1Q18 Conference Call April 20,

2 Forward Looking Statement This presentation and discussion may contain forecasts or projections in accordance with the vision and expectations of the Administration with respect to the performance of the Company, the businesses and future events. These forecasts and projections are subject to risks, uncertainties and assumptions that are uncertain. Several factors can cause actual results to differ materially from those forecasts, projections and plans of the Administration, including, without limitation, business development and marketing of new products, the demand for and acceptance of the Company s products, economic conditions in the product markets and the different regions, the cost of raw materials and energy and the fluctuation of the exchange rate. FINANCIAL EXPECTATIONS The financial expectations, forecasts and projections in this presentation reflect the current beliefs of the Company and its Administration. The Company is not required and does not acquire duty to update this presentation or any forecast, projection or expectation as a result of new information, events or circumstances subsequent to this date. 2

3 JOSÉ MANUEL ARANA - CEO MAIN HIGHLIGHTS & STRATEGIC OVERVIEW 3

4 90 years! Mr. Isidro Lopez A VISIONARY MAN founded in 1928 in Saltillo, Coahuila a manufacturing and distribution of kitchenware business what would become a global and leading company. The GISSA we know today! 4

5 Globalization Strategy Accelerated and profitable growth Competitive advantages Global basis 5

6 Fully aligned within industry s value chain R&D + Co-design + Casting + Machining Commercial, operating and marketing advantages Savings in the supplying cost of raw materials, machinery and tooling Benefits of synergies expected in engineering, process improvement, product design and access to global customers

7 1Q18 Operating Performance Similar Revenue Level in MXP / 9% Growth in dollarized terms EBITDA was down by 10% in MXP / 3% measured in USD Draxton posted double-digit growth of 14% Positive performance in Europe & Asia from higher aluminum volume NAFTA growth helped by favorable price and product mix 7

8 1Q18 Operating Performance Draxton s EBITDA unchanged savings in energy consumptions and reductions in fixed costs Strategic installed capacity to supply global platforms Poland Auto parts site awarded ISO 18001:2004 Certification New machining plant in San Luis Potosi under GISEderlan, follows our strategy of process integration and increased added value In 2018, our efforts will be focused at productivity and achievement of synergies 8

9 1Q18 Operating Performance Vitromex collaborated with distributors for the opening of an additional boutique under the luxury brand Arko Lafaenza Product portfolio adjustments in the US market Vitromex revenue declined 15% GISSA is committed to turning around Vitromex operation Vitromex 1Q18 EBITDA improvement from 4Q17 Strengthening our relationship with our largest customers: Product renewal - Sell and deliver strategy Leaner structure - Adequate portfolio mix Commercial team reinforcement - Capex for productivity improvements 9

10 1Q18 Operating Performance Cinsa s steady growth pace Favorable price effect New product line added Better product mix Operating efficiencies & Cost Savings Strong EBITDA growth of 41% 10

11 FINANCIAL PERFORMANCE MARIO GUZMÁN - CFO 11

12 1Q18 Highlights Mill Ps 1 Q Q 2017 Revenue $4,596 $4,579 Mixed effects, offseting each other Volume: Draxton (=), Vitromex (-), Cinsa (-) Peso vs US$ (-), vs euro + Improved prices and mix in Draxton, Cinsa EBITDA $741 $827 Currency effect, est negative$30 Mill In US$, US$39 vs US$41 Mill, (3%) Construction segment accounts for most of the difference Proforma with JVs, $855 ( 18), $919 ( 17) Net income $473 $796 1st Qtr 2017 financial gain higher in approx $131 Mill Ps after tax 1st Qtr 2018 increased D&A from PPA $41 Mill Ps after tax Net debt $6,349 $6,570 Net leverage remains at 2.2x ( 17), 2.3x ( 18) level 12

13 1Q18 Draxton Financial Performance Draxton exceeded our expectations Revenues in US$ were 14% higher than 1Q17 Better price-product mix and the positive EUR-USD parity effect EBITDA constant in US$. Delays on the implementation of the raw materials pass thru to selling price, continued pressure on materials costs and energy. Appreciation of the local currencies in México, Poland and Czech Republic, impacting the cost structure 13

14 1Q18 Construction Financial Performance Vitromex revenues decreased 15% from lower volume sold Specifically in the US market, as adjustments made in our product portfolio prevented us from offering our distribution network normal supply levels Cost cutting initiatives implemented since 4Q17 are starting to bear fruit Calorex (excluded from Construction or GIS figures) posted double-digit growth of 36% in EBITDA Divesting process of Calorex is still subject to approval by COFECE 14

15 1Q18 Housewares Financial Performance Cinsa increase revenues by 1% EBITDA and EBITDA margins for 1Q18, both significantly improved, by 41% (to $32 million) and 3 percentage points (to 9%) Better product mix Operating efficiencies Better pricing and lower cost 15

16 2018 CAPEX Budget Ps Million Increase Capacity Improvements in Profitability & Efficiency Technological updates 1250 Maintenance Transformation of Production Capacity Draxton Vitromex Cinsa Compliance 16

17 1Q18 Consolidated Financial Performance Net Debt Ps 6.3 billion Net Debt to EBITDA ratio 2.3x Company will propose to its shareholders a dividend payment of Ps per outstanding share, Ps will be paid on May 7, 2018 and the remaining Ps on November 5, 2018 This proposal is subject to approval at GISSA's next Annual Ordinary General Shareholders Meeting 17

18 Q&A 18

19 GRUPO INDUSTRIAL SALTILLO 1Q18 Conference Call April 20,