Diapositiva 1

Corporate Presentation
May, 2014
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
– Net Sales:
– EBITDA:
– Assets:
•
•
•
CapEx 2013:
Market Cap May-14:
Employees 2013:
MXN
$85,871
$18,600
$85,930
USD
$6,726
$1,457
$6,730
USD $180 mm
USD $11.3 Billion
70,000
Note: Forex rate 12.7675 MXN/USD price of shares May 2014 $67.97 Ps
Business Segments
Industrial and
Manufacture
–
–
–
–
Telecom
Construction
Energy
Automotive
Retail and
Consumption
– Restaurant
– Department Stores
– Entertainment Stores
Infrastructure and
Construction
– Civil Construction
– Manufacture and Services
for the Oil&Chemical Ind.
– Infrastructure
– Ducts Installation
– Housing
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 7th, 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.
Outstanding Figures 2013
Million Pesos
2010
2011
2012
2013*
Var
64,196
78,678
83,316
85,871
3.1%
6,887
6,918
9,103
17,277
89.8%
Op Mg
10.7%
8.8%
11.0%
20.1%
9.1pp
EBITDA
8,204
8,310
10,535
18,601
76.6%
12.8%
10.6%
12.6%
21.7%
9.1 pp
7,092
4,321
7,640
13,929
82.3%
Total Assets
81,464
72,822
76,558
85,930
12.2%
Stockholder’s Equity
31,715
43,764
41,881
56,641
35.2%
Sales
Operating Income
EBITDA Mg
Controlling Net
Income
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.
5 year margin history
Sales in million pesos
150,000
Op Mg
100,000
56,793
64,196
78,678
83,316
85,871
2009
2010
11.8
2011
2012
2013
21.7
89,306
50,000
0
EBITDA Mg
2014e
13.2
12.8
10.6
13.6
12.6
9.6
10.8
10.7
8.8
10.9
2008
2009
2010
2011
2012
20.1
2013
11.7
2014e
Contribution to 2013 results
Retail and Consumption
Industrial and Manufacture
Infrastructure and
Construction
Grupo Condumex
CICSA
Grupo Sanborns
Million
Ps
Sales
Op Inc
EBITDA
Op Mg
EBITDA Mg
2011 2012 2013
36,416 39,411 40,514
4,302 4,566 5,006
4,917 5,226 5,500
11.8% 11.6% 12.4%
13.5% 13.3% 13.6%
Other &
Elim
-0.2%
Var%
2.8%
9.6%
5.3%
Million
Ps
Sales
Op Inc
EBITDA
Op Mg
EBITDA Mg
2013 Revenue Breakdown
CICSA,
21.9%
Gcondum,
.311%
Gsanborn
47.2%
2011 2012 2013
28,793 27,415 26,723
1,847 2,211 1,779
2,249 2,571 2,130
6.7% 8.0% 6.6%
8.1% 9.4% 8.0%
Var%
-2.5%
-19.6%
-17.1%
Million
Ps
Sales
Op Inc
EBITDA
Op Mg
EBITDA Mg
2011 2012 2013
14,349 16,670 18,818
848 2,255 2,816
1,137 2,738 3,336
5.9% 13.5% 15.0%
7.9% 15.6% 17.4%
Var%
12.9%
24.9%
26.2%
Op. Income Breakdown 2013 Other
CICSA
29.7%
GCondu
18.8%
& elim
0.9%
GSanbo
50.6%
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.
Financial Situation
EBITDA
21000
Net Debt
19000
Million Pesos
CapEx by Business Segment
5,000
18,601
4,000
17000
3,300
15000
11000
7000
7,468
8,204
8,989
6,766
10,535
8,310
3000
2,000
9,328
1,000
5,752
5000
-1,671
2009
2010
2011
2012
Dollars
16%
2000
Short T
35%
773
561
207
1,350
2010
2011
Gsanborns
2,347
205
467
1,791
396
334
1,675
961
2012
2013
GCondumex
CICSA
300
500
2,500
2014e
CapEx in Million Pesos
4,949
4,172
4000
3000
650
3,109
2014e
5000
Total bank Debt by TERM
Long T
65%
-4,787
0
6000
Total Debt by CURRENCY
(Includes ForEx Hedges)
Pesos
84%
2013
2,773
3,000
12,118
13000
9000
3,877
3,461
2,572
3,877
3,300
2,773
2,347
1,791
1000
0
2006 2007 2008 2009 2010 2011 2012 2013 2014e
Retail and Consumption
Grupo SANBORNS (47% of consolidated sales 2013)
Has nationwide presence through its retail formats
iShop/
M
6.4%
Grupo Sanborns 2013
Revenue Breakdown Other
5.1%
Sanbo
29.5%
Sanbo
18.7%
iShop/
Mix
11.1%
Grupo Sanborns 2013
EBITDA Breakdown
Other
20.5%
Sears
54.4%
Sears
53.7%
Grupo Sanborns
Million Ps
Sales
Op Inc
EBITDA
Op Mg
EBITDA Mg
2011
36,416
4,302
4,917
11.8%
13.5%
2012
39,411
4,566
5,226
11.6%
13.3%
2013
40,514
5,006
5,500
12.4%
13.6%
Var%
2.8%
9.6%
5.3%
Industrial and Manufacture
Grupo CONDUMEX (31% of consolidated sales 2013)
Industrial conglomerate focused mainly in the Telecom, Energy, Construction and Mining
sectors.
Revenue Breakdown by Business
Sector
Markets:
• Mobile and Traditional telephone companies in LatAm;
• Heavy building construction;
• House remodeling;
• Energy companies;
Telecom
Automotive
Constr. and Energy
Industrial Metals
Revenue Breakdown 3Q13
Main Brands:
Constru
58%
Grupo Condumex
Million Ps
Sales
Op Inc
EBITDA
Op Mg
EBITDA Mg
Var% 2013
vs. 2012
-6.2%
17.8%
-2.7%
-3.3%
2011
28,793
1,847
2,249
6.7%
8.1%
2012
27,415
2,211
2,571
8.0%
9.4%
2013
26,723
1,779
2,130
6.6%
8.0%
Var%
-2.5%
-19.6%
-17.1%
Telecom
16%
Autom
26%
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
Other and
Elim 21.1%
Housing
1.0%
Infraest
16.3%
Million Ps
Sales
Op Inc
EBITDA
Op Mg
EBITDA Mg
2011
14,349
848
1,137
5.9%
7.9%
2012
16,670
2,255
2,738
13.5%
15.6%
2013
18,818
2,816
3,336
15.0%
17.4%
Var%
12.9%
24.9%
26.2%
2013 Op. Income Breakdown by sector
2013 Sales Breakdown by sector
Ducts
Install
20.6%
CICSA
Civil
-0.5%
Manuf and
Serv for
Oil&Ch
33.2%
Infrastr
22.3%
Civil C
7.7%
Others &
Elim
1.4%
Housing
-8.2%
Ducts
Install
30.3%
Manuf
and Serv
48.1%
CICSA’s Financial Position
Backlog $17,361 MM Ps 2013
Ducts
686,547
Civil Const
3,321,655
Housing
75,914
Infrastr
7,701,327
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
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;
Gallery of Projects
Guadalajara By-pass road
Atotonilco Waste water Plant
Culiacan By-pass road
Oil Drilling
CFE Solar Panels built by Condumex
Sears Nuevo Veracruz
Gallery of Projects
Star Medica Hospital
Emisor Oriente Water Sewage Tunnel (TEO)
Swecomex Platform Construction
TEO
Nuevo Veracruz Shopping Center
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) 5625-4900 xt. 1460
jserranoe@inbursa.com
Angélica Piña
T. +52(55) 1101-2956
napinag@condumex.com.mx
Trading Symbol:
MSE: GCARSO A-1
OTC: GPOVY 2:1