Corporate Presentation Oct 2015

Corporate Presentation
October 2015
Companies of Grupo Slim
1990
1965
1985
1980
2005
2011
2010
Carso oil & gas
Carso electric
1984
2005
•
More than 270,000 employees
•
Collaborating with more than 50,000 Pymes
•
More than $10 Bn Ps Capex/year
•
Presence in 18 countries
1992
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
– Net Sales:
– EBITDA:
– Assets:
MXN
$82,388
$10,606
$91,710
USD
$6,195
$797
$6,895
•
•
•
•
CapEx 2014:
CapEx 2015e:
Market Cap Dic-14:
Employees 2014e:
$3,119
$7,250
$235 USD
$545 USD
$12.2 Bn USD
70,000
Note: ForEx rate 13.30MXN/USD avg 2014 Price of shares December 31, 2014 $73 Ps
Business Segments
Industrial and
Manufacture
–
–
–
–
Telecom
Construction
Energy
Automotive
Retail and
Consumption
– Restaurant
– Department Stores
– Entertainment Stores
Infrastructure and
Construction
–
–
–
–
Civil Construction
Infrastructure
Ducts Installation
Housing
Carso Energy
– Oil & Gas
– Electricity
– Alternative Energies
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 WahaSan 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 2014.
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.
Outstanding Figures 2014
Million Pesos
2010
2011
2012
2013*
2014
Var
64,196
78,678
83,316
85,871
82,388
-4.1%
6,887
6,918
9,103
17,277
9,090
-47.4%
10.7%
8.8%
11.0%
20.1%
11.0%
-9.1
8,204
8,310
10,535
18,601
10,606
-43.0%
EBITDA Mg
12.8%
10.6%
12.6%
21.7%
12.9%
-8.8
Controlling Net Income
Total Assets
7,092
81,464
4,321
72,822
7,640
76,558
13,929
90,181
5,685
91,710
-59.2%
1.7%
Stockholder’s Equity
31,715
43,764
41,881
56,641
61,185
8.0%
Sales
Operating Income
Op Mg
EBITDA
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
5 year margin history
Op Mg
Sales in million pesos
EBITDA Mg
100,000
56,793 64,196
21.7
86,600
78,678 83,316 85,871 82,388
13.2
12.8
9.6
10.8
10.7
8.8
10.9
2008
2009
2010
2011
2012
11.8
50,000
10.6
12.6
13.7
12.2
11.0
10
2014
2015e
20.1
0
2009
2010
2011
2012
2013
2014e 2015e
Note: 2015 estimates without considering Carso Energy
2013
Contribution to 2013-2014 results
Retail and Consumption
Grupo Sanborns
Million Ps 2012 2013 2014 Var%
Sales
39,411 40,514 41,203 1.7%
Op Inc
4,566 5,006 4,428 -11.5%
EBITDA
5,226 5,500 5,028 -8.6%
11.6% 12.4% 10.7%
Op Mg
EBITDA Mg 13.3% 13.6% 12.2%
Other &
Elim
-0.4%
Industrial and Manufacture
Grupo Condumex
Million Ps 2012 2013 2014
Sales
27,415 26,723 25,957
Op Inc
2,211 1,779 2,474
EBITDA
2,571 2,154 2,822
8.0% 6.7% 9.5%
Op Mg
EBITDA Mg 9.4% 8.1% 10.9%
2014 Revenue Breakdown
CICSA,
19.1%
Condumex
26.3
GSanborn
55.0%
Infrastructure and
Construction
Var%
-2.9%
39.1%
31.0%
CICSA
Million Ps 2012 2013
Sales
16,670 18,818
Op Inc
2,255 2,816
EBITDA
2,738 3,357
13.5% 15.0%
Op Mg
EBITDA Mg 15.6% 17.8%
Op. Income Breakdown 2014
CICSA
21.2%
Condum
21.8%
GSanbor
59.3
Other
& Elim
-2.3%
2014
15,553
2,162
2,716
13.9%
17.5%
Var%
-17.4%
-23.2%
-19.1%
Financial Situation
EBITDA
21000
CapEx by Business Segment
Million Pesos
Net Debt
18,601
19000
7,250
8,000
17000
6,000
15000
3,877
13000
11000
9000
7000
7,468
8,204
8,989
6,766
1,791
9,328
8,310
2,000
5,752
5000
-6,370
-1,671
3000
2009
2010
2011
2012
Total Debt by CURRENCY
(Includes ForEx Hedges)
Pesos
66%
Dollars
15%
Total bank Debt by TERM
Long T
65%
2,773
4,000
10,606
10,535
Short T
35%
2013
0
650
773
3,109
561
207
2010
2014
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
3,119
1,350
396
334
961
2011
2012
Gsanborns
GCondumex
1,675
2013
CICSA
150
128
445
2,347
205
467
3700
500
2,546
2,900
2014
2015e
Carso Energy
CapEx in Million Pesos
7,250
4,949
4,172
3,461
2,572
3,877
3,119
2,773
1,791
2,347
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015e
Retail and Consumption
Grupo SANBORNS (55% of consolidated sales 2014)
Has nationwide presence through its retail formats
2014 Revenue Breakdown
Ishop/M
12%
Other
Sanb
6%
31%
Sears
52%
Ishop/
M 4%
2014 Grupo Sanborns Op. Income Breakdown
Other
28%
Sanb
12%
Sears
57%
EBITDA (mm Ps) and margin
´09-´12 CAGR= 6.0%
Grupo Sanborns
Million Ps 2012 2013 2014 Var%
Sales
39,411 40,514 41,203 1.7%
Op Inc
4,566 5,006 4,428 -11.5%
EBITDA
5,226 5,500 5,028 -8.6%
Op Mg
11.6% 12.4% 10.7%
EBITDA Mg 13.3% 13.6% 12.2%
4,917 4,388 14.4%
2009
5,226 5,500 5,028 4,457 13.4%
2010
13.6%
13.5%
13.3%
2011
2012
2013
EBITDA margin
EBITDA
12.6%
2014
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:
Revenue Breakdown by Business
Sector
Telecom
Automotive
Construction and
Energy
Industrial Metals
Var% 2014
vs 2013
-14.10%
9.30%
-12.80%
-11.20%
Revenue Breakdown 2014
Telecom
21%
Grupo Condumex
Million Ps 2012 2013 2014
Sales
27,415 26,723 25,957
Op Inc
2,211 1,779 2,474
EBITDA
2,571 2,154 2,822
Op Mg
8.0% 6.7% 9.5%
EBITDA Mg 9.4% 8.1% 10.9%
Var%
-2.9%
39.1%
31.0%
Construc
51%
Auto 28%
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
2014 Sales Breakdown by sector
Other and Elim 0.4%
Housing
2.1%
Pipelines
34.2%
Infrastr
26.9%
M&S Oil and Chemical
18.1%
Civil C
18.3%
CICSA
Million Ps 2012 2013
Sales
16,670 18,818
Op Inc
2,255 2,816
EBITDA
2,738 3,357
13.5% 15.0%
Op Mg
EBITDA Mg 15.6% 17.8%
2014
15,553
2,162
2,716
13.9%
17.5%
Var%
-17.4%
-23.2%
-19.1%
2014 Op. Income Breakdown by sector
Housing
‐0.4%
Civil C
8.4%
Infrastr
27.5%
M&S Oil and Chemical
16.8%
Pipeline 41.0%
Other and Elim
0.0%
Carso Energy
Investing in the Energetic Industry
Grupo Carso will start reporting operations in 2015. Carso Energy, which currently has 2
divisions:
1.
2.
Oil: Leasing of oil rigs (Jack-Ups), exploration and production;
Electricity: Construction and operation of gas pipelines, power generation.
Oil & Gas
Electric
Alternative Energies
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.
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:
TEXAS
San Elizario
Presidio
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
CICSA’s Financial Position
Backlog 2014 (1.3 years of sales)
Pipelines
6.4%
Construction
20.2%
M&S Oil
and
Chemical
25.3%
Housing
0.3%
Infrastruct
ure
47.7%
Independencia I Oil Jack-Up
Main projects for CICSA:
 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
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
Gallery of Projects
Guadalajara By-pass road
Atotonilco Waste Water Treatment Plant
Culiacan By-pass road
Oil Drilling
Central Solar Fotovoltaica built by Condumex
Sears Nuevo Veracruz
Gallery of Projects
Star Medica Hospital
Emisor Oriente Water Sewage Tunnel (TEO)
Fabrication dock for oil rigs
Drilling head for the 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