Corporate Presentation October 2015

Transcription

1 Corporate Presentation October 2015

2 Companies of Grupo Slim Carso oil & gas More than 270,000 employees Collaborating with more than 50,000 Pymes More than $10 Bn Ps Capex/year Presence in 18 countries 1992 Carso electric

3 Grupo Carso in brief Leading conglomerate in Mexico with diversified operations 4 business sectors: Retail, Industrial, Infrastructure and Energy. With well-known brands and formats such as: Sears, Sanborns, Ishop/MixUp, Saks Fifth Avenue Condumex, IEM, Gabriel, Precitubo, Sitcom, Microm, Sinergia, Equiter, Logtec CILSA, PC Construcciones, Urvitec Servicios Integrales GSM, Swecomex, Bronco Drilling Mexico Figures (mm) 2014 MXN USD Net Sales: $82,388 $6,195 EBITDA: $10,606 $797 Assets: $91,710 $6,895 CapEx 2014: $3,119 $235 USD CapEx 2015e: $7,250 $545 USD Market Cap Dic-14: $12.2 Bn USD Employees 2014e: 70,000 Note: ForEx rate 13.30MXN/USD avg 2014 Price of shares December 31, 2014 $73 Ps

4 Business Segments Industrial and Manufacture Retail and Consumption Infrastructure and Construction Carso Energy Telecom Construction Energy Automotive Restaurant Department Stores Entertainment Stores Civil Construction Infrastructure Ducts Installation Housing Oil & Gas Electricity Alternative Energies

5 Recent Events Gas Pipeline in Mexico Grupo Carso announced on September 11, 2015 that Federal Electricity Commission of Mexico (CFE) selected the proposal submitted by its subsidiary Carso Electric, S.A. de C.V., as the winning bid in the tender process for the construction and operation of the Samalayuca-Sasabe pipeline, between the states of Chihuahua and Sonora. The company bid the amount of USD $471 million as net present value (NPV). Gas Pipelines in Texas, U.S.A. Grupo Carso announced on January 9 and 29, 2015, that the CFE selected the proposals submitted by the consortium led by its subsidiary Carso Energy S.A. de C.V. with Energy Transfer Partners L.P. and Mastec Inc., as the winning bids in the tender process for the construction and operation of 2 gas pipelines in the State of Texas, USA. i) the Waha-Presidio pipeline having bid an amount of USD $767 mm as NPV and ii) the Waha- San Elizario pipeline having bid an amount of USD $596 mm as NPV. In both cases the formalization of the transport service contract with the CFE is still pending. Carso Energy Grupo Carso announced in the 3Q14 a corporate reorganization on its current energy related activities through its subsidiary Carso Energy, consolidating assets of more than $8 Billion pesos and experienced human capital. IPC Mexico GCARSO is part of the IPC Mexican Index since September Appointment of CEO Gcarso announced on April, 2014 the appointment of Mr. Antonio Gómez García, former CEO of CICSA and Condumex, as the new CEO of Grupo Carso, substituting Mr. José Gutiérrez-Olvera, who retired but remained as member of the Board of Directors.

6 Outstanding Figures 2014 Million Pesos * 2014 Var Sales 64,196 78,678 83,316 85,871 82, % Operating Income 6,887 6,918 9,103 17,277 9, % Op Mg 10.7% 8.8% 11.0% 20.1% 11.0% -9.1 EBITDA 8,204 8,310 10,535 18,601 10, % EBITDA Mg 12.8% 10.6% 12.6% 21.7% 12.9% -8.8 Controlling Net Income 7,092 4,321 7,640 13,929 5, % Total Assets 81,464 72,822 76,558 90,181 91, % Stockholder s Equity 31,715 43,764 41,881 56,641 61, % 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 in Grupo Sanborns. In 2014 the appraisal was $220 mm Ps. 150, ,000 50,000 0 Sales in million pesos 56,793 64,196 78,678 83,316 85,871 82,388 86, e 2015e Op Mg 5 year margin history EBITDA Mg e Note: 2015 estimates without considering Carso Energy

7 Contribution to results Retail and Consumption Grupo Sanborns Million Ps Var% Sales 39,411 40,514 41, % Op Inc 4,566 5,006 4, % EBITDA 5,226 5,500 5, % Op Mg 11.6% 12.4% 10.7% EBITDA Mg 13.3% 13.6% 12.2% Industrial and Manufacture Grupo Condumex Million Ps Var% Sales 27,415 26,723 25, % Op Inc 2,211 1,779 2, % EBITDA 2,571 2,154 2, % Op Mg 8.0% 6.7% 9.5% EBITDA Mg 9.4% 8.1% 10.9% Infrastructure and Construction CICSA Million Ps Var% Sales 16,670 18,818 15, % Op Inc 2,255 2,816 2, % EBITDA 2,738 3,357 2, % Op Mg 13.5% 15.0% 13.9% EBITDA Mg 15.6% 17.8% 17.5% Other & Elim -0.4% Condumex Revenue Breakdown CICSA, 19.1% GSanborn 55.0% Op. Income Breakdown 2014 CICSA 21.2% Condum 21.8% GSanbor 59.3 Other & Elim -2.3%

8 Financial Situation EBITDA CapEx by Business Segment Million Pesos Net Debt 18,601 8,000 6,000 3,877 2,773 10,535 10,606 4,000 8,989 9,328 1,791 8,204 8,310 7,468 3, ,000 6, , , ,671-6, Gsanborns GCondumex CICSA Carso Energy 2, ,675 7, , ,546 2, e Total Debt by CURRENCY (Includes ForEx Hedges) Long T 65% Pesos 66% Total bank Debt by TERM Short T 35% Dollars 15% CapEx in Million Pesos 7,250 4,949 4,172 3,877 3,461 3,119 2,572 2,773 2,347 1, e

9 Retail and Consumption Grupo SANBORNS (55% of consolidated sales 2014) Has nationwide presence through its retail formats 2014 Revenue Breakdown Sanb 31% Other 6% Sears 52% Ishop/M 12% Ishop/ M 4% Sanb 12% Grupo Sanborns Million Ps Var% Sales 39,411 40,514 41, % Op Inc 4,566 5,006 4, % EBITDA 5,226 5,500 5, % Op Mg 11.6% 12.4% 10.7% EBITDA Mg 13.3% 13.6% 12.2% 2014 Grupo Sanborns Op. Income Breakdown Sears 57% Other 28% EBITDA (mm Ps) and margin CAGR= 6.0% 4,388 4, % 4,917 5,226 5, % 13.5% 13.3% 13.6% 5, % EBITDA EBITDA margin

10 Industrial and Manufacture Grupo CONDUMEX (26% of consolidated sales 2014) Industrial conglomerate focused mainly in the Telecom, Energy, Construction, Mining and Automotive sectors. Markets: Mobile and Traditional telephone companies in LatAm; Heavy building construction; House remodeling; Energy companies; Automotive Industry Main Brands: Grupo Condumex Million Ps Var% Sales 27,415 26,723 25, % Op Inc 2,211 1,779 2, % EBITDA 2,571 2,154 2, % Op Mg 8.0% 6.7% 9.5% EBITDA Mg 9.4% 8.1% 10.9% Revenue Breakdown by Business Sector Var% 2014 vs 2013 Telecom % Automotive 9.30% Construction and Energy % Industrial Metals % Revenue Breakdown 2014 Construc 51% Auto 28% Telecom 21%

11 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 16,670 18,818 15, % Op Inc 2,255 2,816 2, % EBITDA 2,738 3,357 2, % Op Mg 13.5% 15.0% 13.9% EBITDA Mg 15.6% 17.8% 17.5% 2014 Sales Breakdown by sector Other and Elim 0.4% Housing 2.1% Pipelines 34.2% Infrastr 26.9% Civil C 18.3% M&S Oil and Chemical 18.1% 2014 Op. Income Breakdown by sector Infrastr 27.5% Civil C 8.4% Housing 0.4% M&S Oil and Chemical 16.8% Pipeline 41.0% Other and Elim 0.0%

12 Carso Energy Investing in the Energetic Industry Grupo Carso will start reporting operations in Carso Energy, which currently has 2 divisions: 1. Oil: Leasing of oil rigs (Jack-Ups), exploration and production; 2. Electricity: Construction and operation of gas pipelines, power generation. Oil & Gas Electric Alternative Energies

13 Carso Energy Drilling Services: Through its subsidiary GSM and Bronco Drilling, Carso Energy offers onshore drilling and most of all related activities like cementing, directional and horizontal drilling, fracking, etc. 13 drills ranging from 750 HP to 1,200 HP Experience (mainly with Pemex) includes 248 development wells in Chicontepec (including related services) and 335 exploratory and development wells in the southern región, where 86 are steam injection Wells. Jack Up Operation and Construction With 2 fabrication docks (both in Veracruz) GCarso has designed and constructed 9 drilling rigs, 3 production rigs including the Independencia 1 Jack Up, 1 Telecom rig and 1 housing rig. Currently leasing the Jack-Up Independencia 1 to Pemex in the South-East waters of Mexico with a duration of 2,555 days including leasing, maintenance, mobilization and operations supervisión. E&P Through Tabasco Oil Co., GCarso operates 2 concession blocks in Colombia which incluide an exploratory and a water injection well. Main activites include: acquisition and interpretation of Seismic Data, 1 exploratory well, 1 water injection well, currently ongoing second drilling program which includes 2 development Wells and 2 exploration wells, expanding production through development Wells.

14 Gas Pipelines in Mexico and the U.S. The Federal Electricity Commission of Mexico selected the following bids for the construction and operation of pipelines: Carso Energy S.A. de C.V. with Energy Transfer Partners LP and Mastec Inc., for 2 gas pipelines in the State of Texas, USA. i) the Waha-Presidio pipeline having bid an amount of USD $767 as NPV and ii) the Waha-San Elizario pipeline having bid an amount of USD $596 as NPV. Carso Electricity S.A. de C.V. for 1 gas pipeline between the states of Chihuahua and Sonora, in the north of Mexico. i) The Samalayuca-Sásabe pipeline having bid an amount of USD $471 as NPV. DETAILS OF THE PROJECTS: San Elizario Presidio TEXAS Waha-Presidio: 230kms long and 42 inches diameter. 1,350 million cubic feet daily (MMCFD) 30 months estimated for construction March 2017 Waha-San Elizario: 277 kms long and 42 inches diameter. 1,450 MMCFD 30 months estimated for construction January 2017 Samalayuca-Sásabe: 528 kms long and 36 inches diameter 550 MMPCD 24 months estimated for construction June 2017

15 CICSA s Financial Position Backlog 2014 (1.3 years of sales) Pipelines 6.4% Construction 20.2% M&S Oil and Chemical 25.3% Infrastruct ure 47.7% Housing 0.3% Main projects for CICSA: Independencia I Oil Jack-Up Water sewage system (Tunel Emisor Oriente); Plaza Carso and Nuevo Veracruz shopping centers; Drilling of oil wells in the Southeast of the country; Telecom and natural gas pipelines; Aqueducts and water treatment plants (Atotonilco); Bypass roads in the Northeast of the country Construction of department stores for Grupo Sanborns

16 Investment Thesis Dynamic conglomerate that adapts its business portfolio to take advantage of economic cycles, market tendencies and business opportunities; Focus on industries where the Group holds a strong competitive position; Retail sector with well-known formats and nationwide presence; Innovative in products, engineering and construction processes; Efficient use of resources and technology; Value creation for shareholders; Sound corporate governance

17 Gallery of Projects Guadalajara By-pass road Culiacan By-pass road Central Solar Fotovoltaica built by Condumex Atotonilco Waste Water Treatment Plant Oil Drilling Sears Nuevo Veracruz

18 Gallery of Projects Star Medica Hospital Fabrication dock for oil rigs Drilling head for the TEO Emisor Oriente Water Sewage Tunnel (TEO) Nuevo Veracruz Shopping Center

19 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 [email protected] Angélica Piña T. +52(55) [email protected] Trading Symbol: MSE: GCARSO A-1 OTC: GPOVY 2:1