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. 2016. 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 www.gmxt.mx 1
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, 2018. Fourth Quarter Variance January - December Variance Million Mexican Pesos 2016 2017 US$000 % 2016 2017 US$000 % Load Volume (MillionTons/Km) 13,447 15,551 2,105 15.7 55,215 59,105 3,890 7.0 Moved Cars 357,243 505,206 147,963 41.4 1,423,847 1,729,818 305,971 21.5 Sales 8,261 10,863 2,602 31.5 32,905 38,577 5,672 17.2 Cost of Sales 4,887 6,266 1,379 28.2 18,555 21,871 3,316 17.9 Operating Income 2,238 2,679 441 19.7 9,819 10,506 687 7.0 EBITDA 3,804 4,585 781 20.5 14,441 16,526 2,085 14.4 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 www.gmxt.mx 2
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 2017 2016 2017 2016 2017 2016 2017 2016 Agricultural $2,669 $2,390 72,959 62,229 $10,323 $9,724 283,975 272,919 Minerals $1,267 $860 59,463 31,966 $4,347 $3,231 188,927 117,430 Energy $805 $653 26,388 24,480 $3,018 $2,567 101,405 95,745 Automotive $1,166 $990 41,624 39,434 $4,340 $3,963 159,126 163,245 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 $3,266 125,260 123,733 Intermodal (Containers) $1,634 $687 206,361 106,994 $4,525 $2,581 610,808 395,363 Total 10,010 7,921 505,206 357,243 $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 $32,905 For the year Revenues per Segment Tons Km 4T17 www.gmxt.mx 3
Key Metrics We report our key operating metrics on a consolidated level up to December 31, 2017: Key Metrics 2016 2017 Var % 2017 vs 2016 Net Ton-km (millions) 55,216 59,105 7.0% Employees 10,048 11,305 12.5% Fuel Consumption (million liters) 473.1 472.7-0.1% Average fuel price (MX$/liter) 11.81 14.24 20.6% Liters of fuel consumed per 1000 GTKs 4.5 4.1-8.0% Average Train Speed (kilometers per hours) 29.08 34.95 20.2% Accident Rate (per 200,000 person hours) 2.97 2.05-31.0% 4T17 www.gmxt.mx 4
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: 52 55 6722 5257 (Participants in Mexico) (001) 866 779 0965 (Outside Mexico) Confirmation code: 4642 2447 A repetition of the call shall be available 2 hours following the end of the call and until February 22, 2018. (888) 843-7419 (participants from the US) (630) 652-3042 (Participants outside the US) Confirmation code: 4642 2447# 4T17 www.gmxt.mx 5
Financial Statements GMÉXICO TRANSPORTES, S.A.B. DE C.V. (GMXT) CONDENSED FINANCIAL STATEMENTS (IFRS) (In million of Mexican Pesos) STATEMENT OF INCOME 2017 2016 Variance 2017 2016 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 509 275 234 85% 1,514 1,059 455 43% Employee profit sharing 251 233 18 8% 922 824 98 12% Other revenues (42) (122) 80-66% (153) (217) 64-29% EBITDA 4,585 3,804 781 21% 16,526 14,441 2,085 14% Depreciation and amortization 1,200 750 450 60% 3,917 2,865 1,052 37% Operating profit 2,679 2,238 441 20% 10,506 9,819 687 7% Operating margin 24.7% 27.1% 27.2% 29.8% Interest expenses 720 106 614 579% 1,430 404 1,026 254% Interest earned (50) (52) 2-4% (195) (194) (1) 1% Exchange loss - net (219) (73) (146) 200% 442 (189) 631-334% 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 291 56 235 420% 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 946 750 196 26% 946 750 196 26% Prepaid expenses and other accounts receivable 645 535 110 21% 645 535 110 21% 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 15,157 515 14,642 2843% 15,157 515 14,642 2843% Other assets 1,519 1,312 207 16% 1,519 1,312 207 16% 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 11,288 180 11,108 6171% 11,288 180 11,108 6171% Accrued expenses 5,771 3,659 2,112 58% 5,771 3,659 2,112 58% Total current liabilities 17,059 3,839 13,220 344% 17,059 3,839 13,220 344% Long - term debt 20,188 5,349 14,839 277% 20,188 5,349 14,839 277% Long - term accrued expenses 8,961 1,949 7,012 360% 8,961 1,949 7,012 360% Employee retirement obligations 190 114 76 67% 190 114 76 67% Total liabilities 46,398 11,251 35,147 312% 46,398 11,251 35,147 312% Other comprehensive income 11,377 871 10,506 1206% 11,377 871 10,506 1206% 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 7,840 229 3% 8,069 7,840 229 3% Total Liabilities and Stockholders Equity 102,115 51,743 50,372 97% 102,115 51,743 50,372 97% 4T17 www.gmxt.mx 6
GMÉXICO TRANSPORTES, S.A.B. DE C.V. (GMXT) CONDENSED FINANCIAL STATEMENTS (IFRS) (In million of Mexican Pesos) 4Q Accum ulated CASH FLOWS 2017 2016 Variance 2017 2016 Variance Incom e before taxes 2,256 2,285 ( 29) -1% 8,912 9,871 ( 959) -10% Depreciation and amortization 1,200 750 450 60% 3,917 2,865 1,052 37% Equity in net income of associated company (28) (28) - (83) (73) (10) 14% Others - Net 9 (5) 14-280% (34) (29) (5) 17% Changes in assets and liabilities 1,367 406 961 237% 158 (1,193) 1,351-113% 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) 712-30% (5,323) (6,702) 1,379-21% Purchase of shares FEC - - - (35,963) - (35,963) Dividends received 3 1 2 200% 10 4 6 150% Others - Net 57 34 23 68% 337 296 41 14% Net cash used in investing activities ( 1,566) ( 2,303) 737-32% ( 40,939) ( 6,402) ( 34,537) 539% Proceeds from bank financing - - - 42,284-42,284 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) 29,741-1020% 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 www.gmxt.mx 7