Diapositiva 1 - Grupo México

Company Overview & Highlights
August 2015
CONTENTS
I.
Grupo Mexico Overview
II.
Copper Market
III. Mining Division – AMC
IV. Transportation Division – ITM
V. Infrastructure Division – MPD
I. GRUPO MEXICO OVERVIEW
1
Complementary Divisions with Relevant Growth Potential
49%
Public
Float
GMEXICOB
MINING
TRANSPORTATION
100%
Americas Mining
Corporation (AMC)
Southern
Copper
Corporation
100%
100%
Mexico
Division
ASARCO
Peru
Division
 Among world’s largest producers of
Cu, Mo, Ag & Zn.
100%
74.9%
ITM
Stake in GAP*
100%
86.2%
INFRASTRUCTURE
25.1%
FM Rail Holding
100%
Mexico Proyectos
y Desarrollo
74%
Infraestructura
y Transportes
Ferroviarios
Grupo
Ferroviario
Mexicano
100%
100%
FERROSUR
FERROMEX
 Largest and most profitable railroad
in Mexico (64% market share).
* IITM owns 10% of Grupo Aeroportuario del Pacifico´s shares
26%
100%
Perforadora
México
100%
Mexico
Compañía
Constructora
e Ingeniería
100%
Mexico
Generadora
de Energía
 78 years experience in
infrastructure construction projects.
2
Significant Cash Generation Capabilities, focused on Organic Growth
Market Cap as of Aug 2015:
US$22 B
Millions of USD
2011
2012
2013
2014
LTM³
Copper Price (Avg. US$ per lb)
4.01
3.61
3.34
3.12
2.89
9,324
8,985
Revenues
Mining Division
Transportation Division
10,443
9,357
83%
16%
77%
20%
75%
21%
72%
21%
5,193
1%
5,006
3%
4,147
4%
3,907
6%
3,686
Net Income
2,472
2,385
1,845
1,703
1,839
Cash & Securities
2,229
3,513
2,589
1,641
2,998
Total Assets
15,201
19,559
19,805
20,204
22,251
Total Debt¹
3,801
5,584
5,811
5,948
7,846
Shareholder's Equity
7,269
8,293
9,458
9,763
9,989
Capital Expenditures
1,217
2,118
2,852
2,438
2,147
Free Cash Flow²
1,761
1,082
41
21
228
Infrastructure Division
EBITDA
83%
16%
10,183
► US$ 2.2 Billion
Capital
Expenditure
Program for 2015
► In 2015 we are
expecting a 13%
increase in
production derived
from our
expansions
► Cash Flow
generation is
expected to
significantly grow
along with
production
1 Includes short-term and long-term debt
2 Free Cash Flow defined as net cash from operating activities less capital expenditures
3 Last tw elve months as of June 30, 2015
5
Key Strategic Catalysts
Buenavista Expansion – Top 3 Cu Mine by 2015
Infrastructure Division – Creating Value
►
Expansion program to increase current capacity from
180K to 504K tons by 2016. A production increase of
180%.
►
Executing attractive growth infrastructure opportunities
in oil and water drilling services, power production, civil
and industrial engineering.
►
The SX/EW III has been completed and reached its full
capacity in November 2014. The New Copper
Concentrator is expected to come in line by the 3Q15 .
►
During 2014 we delivered the second of the two
combined cycle power plants, the two 400ft platforms,
the wind farm and the first tranche of our toll road.
►
In 2015 we are expecting 163KT of additional production
coming from the expansions.
►
We expect Infrastructure Division’s EBITDA to reach
~US$400 million by 2016.
GMéxico –Capex Program in 2015
Rail Growth – Increasing Market Share
►
The Transportation Division will invest 22% of expected
revenues in 2015, while other one class railroads invest
on average 16%.
►
When the railroads were privatized, only 19% of freight
was transported by railroad in Mexico. The Company is
confident that with these investments, cargo load by
railroad will increase to 30% by 2018.
►
Sixth consecutive year of double digit EBITDA growth.
►
We are expecting a US$2.2 Billion Capex program for
2015; 72% to the Mining Division, 20% to the
Transportation Division and 8% to the Infrastructure
Division.
►
Our capital expenditures are expected to decline after
2016, which, combined with higher production, will
result in substantial incremental free cash flows.
►
Expecting to continue with our quarterly dividend
payment.
4
II. Copper Market
5
Copper has the best fundamentals in the basic
materials space
► After 2017 the market will shift into a position of ever
widening deficits 454kt expected in 2018 (CRU).
Significant decreases to production have been made
at key mines
Bingham Canyon (75KT)
Escondida (50KT)
Sierra Gorda (150KT)
► COCHILCO has indicated they believe that at the current
price levels about 10% of the country’s production is at
risk. In 2014, Chile produced approximately 5.8 million
metric tons of copper.
► The government of Zambia has increased its royalty
regime from approximately 6% to 20% of the sales value.
This confiscatory taxation will jeopardize their production
and exports. In 2014, Zambia produced 577,000 metric
tons.
Copper Consumption Increase of 2.1% in 2015
Estimated by CRU
Source: CRU
Source:-Wood Mackenzie
Long Term price of US$3.50/lb should be the
incentive price to develop new projects
Source:-Wood Mackenzie
6
49%
Public
Float
MINING DIVISION
100%
Americas Mining
Corporation (AMC)
86.2%
100%
Southern
Copper
Corporation
100%
Mexico
Division
ASARCO
100%
Peru
Division
III. MINING DIVISION: AMERICAS MINING CORPORATION
7
►World Class Assets in The America’s
►Easy Access to Consumers
►Large Scale Open-Pit Mines, in
Investment Grade Countries
Location of Operations
(Fully Integrated)
USA
Ray Mine, Arizona
Mission Mine, Arizona
Silver Bell Mine, Arizona
Hayden Smelter, Arizona
Amarillo Refinery, Texas
Mexico
Peru
Toquepala Mine, Toquepala
Cuajone Mine, Cuajone
Ilo Smelter & Refinery, Ilo
Tia María SXEW
Los Chancas
Key
Mines
Smelters and Refineries
Location of Projects
Projects
Exploration Projects
Buenavista Mine, Sonora
La Caridad Mine, Sonora
La Caridad Smelter & Refinery, Sonora
Santa Barbara Mine, Chihuahua
Santa Eulalia Mine, Chihuahua
Zinc Refinery, San Luis Potosí
San Martin Mine, Zacatecas
Taxco Mine, Guerrero
Angangueo, Michoacan
El Arco, Baja California
El Pilar Mine, Sonora
.
.
Chile, Argentina & Ecuador
Exploration Projects in Northern Chile:
Ticnamar, Catanave, Santa María, & San Benito.
Exploration Projects in South Argentina and
South Ecuador Chaucha
8
Largest Pure Copper Player & Diversified Country Asset Base
1H15 Revenue by Product
Zinc
Sulfuric Acid 3.7%
2.1%
Copper Reserves as Reported
MT
Gold Others
2.4% 0.8% Lead
0.6%
80
71
70
57
60
50
Molybdenum
4.9%
Silver
3.5%
37
40
33
30
32
27
21
20
13
11
10
Source
10K
Period 12/31/14
Cu Price $2.90
Codelco
Glencore/
Xstrata
AA
Vale
Antofagasta
Rio Tinto
BHP
Anglo
American
FXC
Glencore
/Xstrata
BHP
AMC*
FCX
AMC
Codelco
0
Copper
82.1%
Rio Tinto
Antofag
asta
Vale
Annual Rep.
10K
20F
20F
Annual Rep.
12/31/14
12/31/14
06/30/14
12/31/14
12/31/14
12/31/2014
12/31/14
12/31/14
N/A
$2.00
$3.65
N/A
N/A
N/A
$3.10
$3.35
1H15 Revenue by Market
Reserve Rep. Annual Rep. Annual Rep.
Life of Mine
Years
Peru
5%
Europe
7%
LatAm exc.
Mexico & Peru
9%
China & Asia
19%
Mexico
33%
90
84
80
70
60
55
50
USA &
Canada
27%
40
34
34
30
25
21
21
BHP
Rio Tinto
20
18
10
-
AMC
Anglo American
Codelco
FCX
Glencore/Xstrata
New AMC After
Expansions
9
AMC Cash Operating Cost Net of By-Products
► One of the Lowest Copper Cost Producer, well under the Industry Average.
► Significant SX-EW production (22% vs 28%) after expansions.
AMC’s Consolidated Cash Operating Cost
AMC Cost Structure
Cents per pound of Copper
Other
8%
1.39
1.34
1.32
1.29
1.32
1.29
1.25
Power & Fuel
30%
Labor
25%
1.22
1.18
Operating
Materials
19%
Maintenance
18%
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
2Q15
2014 Cost for Copper By Company
AMC Comfortable Debt Maturity
300
1,400
250
1,200
Anglo
1,179
1,092
986
1,000
200
Rio Tinto Freeport
BHP
Codelco
Glencore
Antofagasta
800
150
SCC
AMC
Global average
154c/lb
600
100
399
400
50
299
224
Source: GMexico / BrookHunt
24
24 24
18
51
2042
2040
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
0
2024
35000
2023
30000
2022
Cumulative Production (Paid Mlb Cu)
25000
2021
20000
2020
15000
2019
10000
2018
5000
2017
0
2016
200
0
2015
C1 Cash Cost Composite (c/lb Cu)
Average AMC: 23
10
Attractive Organic Growth Prospects – Investments to Significantly Increase Production
2013 and 2014
Delivered
Buenavista
Molybdenum Plant
3Q13 - $38M /2K Tons Mo
Mission
Mill Expansion
3Q13 - $60M/10K Tons Cu
Molybdenum Plant
2Q13- $5M / 0.5 Tons Mo
Cuajone
Variable cut-off
Grade + HPGR/2H13 - $158M
22K Tons Cu / 0.7K Tons Mo
Buenavista
SX/EW III
4Q14 - $525M
120K Tons Cu
2015 -2017
Board Approved
Buenavista, Sonora, México
Concentrator Plant
3Q15 - $1,400M
188K Tons Cu / 2.6K Tons Mo
Toquepala, Perú
Concentrator Expansion
4Q17 - $1,200M
100K Tons Cu / 3.1K Tons Mo
Tia Maria, Perú
SX/EW
1Q18- $1,400M
120K Tons Cu
El Pilar, Sonora, México
2018 - $300M
35K Tons Cu
Aznalcóllar, Sevilla, Spain
Polymetallic Deposit - 60K tons Zinc
CAPEX €300M
2018 and on
Pending Approval
Empalme, Sonora, México
Copper Smelter $870M
300K Tons Cu Cont.
Copper Refinery $270M
300K Tons Cu Cont.
Zinc Refinery $600M-120K
Tons Zinc
Buenavista, Sonora, México
Zinc Concentrator
$200M
16K Tons Cu + 55K Tons Zn
Ray, Arizona
Concentrator & SX/EW
$TBA
90K Tons Cu / 0.9 Tons Mo
Los Chalchihuites,México
$140M 26K Cu
El Arco, Baja California, México
Concentrator & SX/EW
$2,600M
190K Tons Cu
105K Oz Au
Los Chancas, Perú
$1,200M
100K Tons Cu
7.5k Tons Mo
Cuajone, Perú
Concentrator Expansion
$500M
50K Tons Cu
0.7 Tons Mo
2015 – 2019 Estimated Copper Sales
2015 – 2019 Estimated Capex Program
‘000 MT
$ MM
2,000
1,800
Asarco
2,500
SCC
1,600
2,105
Asarco
SCC
1,400
2,000
1,200
1,587
1,000
1,500
1,215
960
1,072
1,201
1,331
1,283
2018
2019
800
1,000
600
649
449
500
400
200
0
2015
2016
2017
2018
Source: GMexico
Note: Includes Operating Capex . The Capex budget for 2014 only approved by the board.
2019
0
2015
Source: GMexico
2016
2017
11
49%
Public
Float
TRANSPORTATION DIVISION *
74.9%
25.1%
FM Rail Holding
100%
Infraestructura
y Transportes
Ferroviarios
100%
FERROSUR
100%
74%
Grupo
Ferroviario
Mexicano
26%
100%
FERROMEX
Líneas
Ferroviarias
Mexico
100%
TEXAS PACIFICO
* The transportation division owns 10% of GAP’s shares through its subsidiary ITM positioned at the same level
as FM Rail Holding.
12
Strong Operating Track Record
Million of USD
Load Volumes
Carloads
Revenues
2009
2010
2011
2012
2013
39,205
45,277
52,182
51,344
51,054
869
1,003
1,070
1,102
1,115
920
1,178
1,632
1,677
1,856
2014
51,704
► Sixth consecutive
year of double
1,164
digit EBITDA
growth
1,995
Operating Income
190
269
327
417
460
490
Operating Margin
21%
23%
0.218
20%
25%
25%
EBITDA
273
371
465
559
621
Margin EBITDA
30%
31%
29%
33%
34%
► EBITDA margin
has grown from
30% to 38% in the
689
last quarter
35%
Net Income
121
206
157
341
262
347
Total Debt¹
368
350
492
474
420
Shareholder's Equity
1,140
1,406
1,408
1,851
2,001
Capital Expenditures
124
132
355
259
415
25%
► Conservative debt
profile (2) 0.70x vs
2,224
industry peers
289
average 1.90x
403
1 Includes short-term and long-term debt
2 Debt profile: Total Debt /EBITDA
13
Mexico’s Leading Railroad
Mexico’s largest railroad with a track network of 10,400 km, covering 81% of Mexico’s
territory. Operations in the State of Texas, US.
Strong Revenue Mix
Cement, 5%
Others, 5%
Agricultural, 27%
Siderurgical, 6%
Intermodal, 7%
Energy, 8%
Automotive, 12%
Chemical, 9%
Mineral, 10%
Industrial, 11%
14
I. Strategic Growth Areas
15
Growth Opportunities for FM Rail Holding
► Penetration and Market Share.- Exceptional growth potential due to low rail
penetration.
► Automotive.- In 2014 Nissan, Mazda and Honda started assembling in new plants
within our tracks. Audi will start in this year. KIA and BMW in 2016.
► Intermodal.- Expected to be the most dynamic segment in the near future.
► ITM to explore strategic alternatives to create value.
16
FM Rail Holding – Market Share & Penetration
2014 Mexican Railway Load Distribution
FM Rail Holding Market's Participation in Tons-KM
Ferrosur
2%
Truck
75%
80%
80,000
70%
70,000
60%
60,000
KCSM
8%
Rail
25%
90,000
66%
55%
40,000
Others
1%
Ferromex
14%
30,000
61%
62%
50,000
64%
65%
50%
58%
40%
30%
52%
20%
10%
10,000
-
0%
2000
2001
2002
2003
2004
Source: SCT
2005
TON-KM ITM
2014 Rail Penetration by Country
2006
2007
2008
2009
TON-KM Moved by Train
2010
2011
2012
2013
2014
%
Growth & Current Participation by Segment
70%
30%
► Energy, Intermodal,
Automotive and
Minerals have achieved
a CAGR above 10%
during the last five
years
62%
60%
25%
Energy
53%
50%
Intermodal
20%
Automotive
40%
65%
20,000
► In 1998 only 8% of freight was transported by railroad in Mexico.
54%
65%
67%
53%
55%
50%
63%
36%
15%
30%
Metals
25%
Minerals
10%
20%
Industrials
5%
Agricultural
10%
Chemicals & Fert.
Cement
0%
0%
Canada
United States
Australia
Source: OECD; U.S. Bureau Transportation Statistics
United Kingdom
Mexico
0%
5%
Source: Company Data
10%
15%
20%
Revenue Part. 2014
25%
30%
35%
17
The largest shipper in the Automotive Sector in Mexico
►FM Rail Holding has currently access to 11 automotive plants.
►4 additional plants to be installed in Mexico by 2016, are within FM Rail Holding’s
network.
Mexico's Automotive Expected Production will
significantly increase FM Rail Holding’s carloads
►By 2017 Mexico's automobile production is expected to increase by
34%.
4.7
250,000
4.8
4.4
200,875
200,000
2.9
150,000
4.5
4.0
3.6
3.2
5.0
3.3
3.5
2.9
3.0
2.6
2.3
2.5
100,000
2.0
1.5
50,000
1.0
0.5
-
117,508
2010
2011 2012 2013 2014
FM Rail Holding
ITM (000' carloads)
(000´carloads)
Source: Bloomberg and Company data
2015
2016
2017
2018
2019
Production (000'.cars)
18
Intermodal Segment
Geographically advantaged with improved service capability
We have a wide network of intermodal terminals
Prepared to significantly grow this segment by developing
8 New Intermodal terminals to increase our volumes
►
Since 2005 Chinese products have become about +33% more
expensive than Mexican products (US dollar terms).
TEU’s Expected Growth
600,000
533,875
500,000
400,000
300,000
200,000
189,296
100,000
2008
2013
2014
2015E 2016E 2017E 2018E 2019E
Source: SCT, Bloomberg, OECD; U.S. Bureau Transportation Statistics
and Company Data.
TEU: Twenty-foot Equivalent Unit
19
Significant Investments Resulting in Strong Financial Performance &
Improved Operating efficiencies
Operating Ratio
82%
80%
50.0
80%
75%
76%
30.0
74%
72%
72%
35.54
28.4
68%
2009
2014
2019E
39,204
27%
20%
10%
10,000
0.0
0
2010
2014
2019E
0%
2009
Source: FM Rail Holding
1,200
2009
2014
2019E
Source: FM Rail Holding
CAGR
10%
1,000
800
300
600
200
400
100
200
0
982
1,038
860
394
400
2019E
US$Million
479
429
2014
2015-2019 Estimated EBITDA
522
472
30%
20,000
US$Million
500
35%
50,000
Estimated Capital Expenditures
600
39%
40%
51,704
30,000
20.0
Source: FM Rail Holding
Source: FM Rail Holding
50%
64,880
60,000
40,000
23.12
10.0
70%
EBITDA Margin
70,000
40.0
78%
TN/KM
Speed (Km/Hr)
716
780
0
2015
2016
2017
2018
2019
2015
2016
2017
2018
2019
20
49%
Public
Float
INFRASTRUCTURE DIVISION
100%
Mexico Proyectos
y Desarrollo (MPD)
100%
Perforadora
México
(PEMSA)
Oil & Gas
V. INFRASTRUCTURE DIVISION
100%
Mexico
Compañía
Constructora e
Ingeniería
(MCC)
Construction
100%
Mexico
Generadora
de Energía
(MGE)
Energy
21
Infrastructure Division’s operations & projects’ location
MGE
La Caridad, Sonora
Combine Cycle Power Plants 500 MW
PEMSA
Houston, Texas
PEMSA Office
PEMSA
Upcoming platforms to start
-Veracruz Platform Rig
-Tamaulipas Platform Rig (Baytown, Texas)
Zacatecas
Jack-Up
PEMSA
Chihuahua
Jack-Up
MCC
León, Guanajuato
Highway Salamanca- León
Sonora Tabasco
Jack-Up Jack-Up
PEMSA
Poza Rica, Veracruz
Onshore Drilling base camp
“Don Jorge” ATG
PEMSA
MPD
Cd. De México, DF
-MPD Headquarters
-GMSI Headquarters
Campeche
Jack-Up
MGEE
Zaragoza, Oaxaca
Wind Farm Power Plant
“El Retiro” 74 MW
Cd. del Carmen, Campeche
- PEMSA Headquarters
- Cement Plant
24
Infrastructure Projects that Generate Value and Growth
MPD EBITDA and Margin %
Capital Expenditures
$ MM
80%
405
400
200
69
108
31%
36%
2012
2013
70%
MCC
MGE
800
662
572
PEMSA
482
600
208
50%
37%
40%
45%
1,200
1,000
60%
270
300
-
1,441
1,400
500
100
1,600 $ MM
41%
400
200
147
175
0
2011
2012
2013
2014
2015E
30%
2014
2015E
2016E
MPD Revenues
2016E &
2017E *
* CAPEX for 2016 &2017 is not approved by the Board of Directors. Thus, it is a preliminary estimated number.
GMexico 2016 Estimated EBITDA Contribution
Infrastructure
10%
$ MM
1,200
MCC
1,000
986
MGE
PEMSA
800
562
600
Rail
20%
603
Mining
70%
305
400
223
200
0
2012
2013
2014
2015E
2016E
**Estimated copper price US$2.50/lb
**Estimated FM Rail Holding’S Tn/Km 56,673
30
Infrastructure Divisions Overview
Perforadora México
(PEMSA)
México Generadora de Energía
(MGE)
México Compañía
Constructora (MCC)
Grupo México Servicios de
Ingeniería (GMSI)
Oil & Gas
Power
Construction
Engineering
► 55 years working alongside
PEMEX
► Newest division in the
infrastructure division
► Relevant experience in the
construction industry
► Provides engineering
services
► Main assets located in
Campeche, Tabasco, Puebla &
Veracruz
► Created in 2010
► 78 years developing
infrastructure projects
► Created 1998 and fully
acquired by GM in 2011
► Recent state of the art assets
for the offshore división
► Generates power for our own
mining & railroad operations
and for third parties (e.g.
Cinemex)
► Specializes in the industrial
sectors such as:
•
•
•
•
► Supplier of choice with PEMEX
in certain oil services (e.g.
cement)
Main Assets
Main Assets
•
•
•
•
•
5 Jack-up Rigs
2 Platform Rigs (“modular”)
3 onshore drilling equipments
Cement Plant for offshore
Integrated services base
camp
Projects
• Participation in PEMEX’s
Round One
• Two C.C power plants
(250MW each):
• One operating since 3Q14
• Second operating since
3Q14
• 74MW Wind Farm,
operating since 2Q14
Projects
• Peñas Prietas Wind Farm
• Cogeneration projects
Main Assets
• Construction & Operation for
30 years of LeonSalamanca toll road
• 24 month construction
• Lenght 78KM
• The first tranche came in
line on 4Q14
Mining/ Metallurgy
Refining/Petrochemical
Pipelines
Infrastructure
► The main areas of expertise
in the engineering projects:
 Feasibility studies
 Conceptual & Detailed
Engineering
 Project Management
22
With our companies, Grupo Mexico covers most of the opportunities in Mexico's
National Development Plan
National Development Plan
2014-2018
Grupo Mexico covers
72% of the
development plan
Sectors of
Main Focus
Construction &
Transportation
Urban
Development
Oil & Gas
Hydraulic
Power
Health &
Tourism
•
124 Projects
•
4 Projects
•
223 Projects
•
138 Projects
•
84 Projects
•
170 Projects
•
US$ 254 Bn
investment
•
US$ 143 Bn
investment
•
US$ 101 Bn
investment
•
US$ 46 Bn
investment
•
US$ 2 Bn
investment
•
US$19.6 Bn
investment
•
42% total
estimated
investment
•
25% total
estimated
investment
17% total
• 8% total
estimated
estimated
Grupo México Servicios de Ingeniería (GMSI)
investment
investment
•
5% total
estimated
investment
•
3% total
estimated
investment
•
Perforadora Mexico
(PEMSA)
Mexico Generadora de
Energía
(MGE)
Mexico Compañía
Constructora (MCC)
Grupo México Servicios
de Ingeniería (GMSI)
ITM
23
PEMSA Onshore Drilling & Drilling services
Onshore Drilling
Drilling Fluids
Engineering
Well Cementing
Engineering
Directional Drilling
Services
Hydraulic Fracking
Services
Overview
Overview
Overview
Overview
Overview
► Expertise in some of
the most difficult oil
fields and in most
onshore regions
(Poza Rica, Tabasco)
► Provides drilling
fluids services since
2007
► Operations in “Don
Jorge” base camp for
ATG
► Offers several types
of services:
 Oil--based drilling
fluids
 Water-based
drilling fluids
 Crystal clear
brines
► Portable drilling
fluids plant with
1,000m3 capacity
► Currently evaluating
the construction of a
drilling fluids plant for
offshore services in
Cd.Carmen.
► Cementing services to
offshore and onshore
oil Wells for PEMEX
and third parties
since 2005
► 2 cement plants:
Cd. Del Carmen
1,000 ton
Poza Rica: Portable
plant with 720 ton
capacity
► Cementing Services
include:
Primary and
intermediate casing
cementing
Production casing
and liners cementing
Special slurrys H2S
resistant
Cementing services
on Deep and shallow
waters
► Directional Drilling
services for offshore
and onshore drilling
since 2007
► Main directional
drilling equipment:
Measurement-WhileDrilling (MWD)
Logging-WhileDrilling (LWD)
Pressure-WhileDrilling (PWD)
Rotary Steerable
Systems (RSS)
► Workshop locations
for Directional
Drilling
Cd. Del Carmen
Poza Rica
(1,200M3)
► Strategic Joint Venture
with C&J that allows
PEMSA to provide
Hydraulic Fracking
services
► Offers well completion
services for PEMEX
and third parties
► C&J is a Premium
provider of hydraulic
fracturing and coiled
tubing services
► The Company is listed
in NYSE with a market
cap of US$1.4billion
► Main operation in the
most active US shale
basins
► Successfully
concluded a recent
contract for onshore
integral drilling in
ATG (development of
159 wells)
► First Mexican drilling
Company to perform
horizontal wells
► 3 onshore drilling
equipments
• 2 x 1,000hp
• 1 x 1,500hp
25
PEMSA Offshore Drilling Assets
“Sonora” Jack-up







“Chihuahua” Jack-up
“Campeche” Jack-up
“Tabasco” Jack-up
Description
Description
Description
Description
Description
Year built:
1979
Last modification:
2009
Operating water depth:
285ft
Max drilling water depth: 20,000ft
Design:
Marathon Le Tourneau
Living quarters capacity: 94 men
Variable load:
3,280 kips
“Zacatecas” Jack-up







Year built:
2011
Delivery date:
Abr/2012
Operating water depth:
300ft
Max drilling water depth: 30,000ft
Design:
F&G Super M2
Living quarters capacity: 110 men
Variable load:
9,000 kips
“Veracruz” Platform Rig







Year built:
2012
Delivery date:
Oct/2012
Operating water depth:
300ft
Max drilling water depth: 30,000ft
Design:
F&G Super M2
Living quarters capacity: 110 men
Variable load:
9,000 kips







Year built:
2013
Delivery date:
Jan/2014
Operating water depth:
400ft
Max drilling water depth: 35,000ft
Design:
F&G JU-2000E
Living quarters capacity: 140 men
Variable load:
14,300 kips
“Tamaulipas” Platform Rig
Operating Assets
In process
Under Maintenance







Year built:
2014
Delivery date:
Sep/2014
Operating water depth:
400ft
Max drilling water depth: 35,000ft
Design:
F&G JU-2000E
Living quarters capacity: 140 men
Variable load:
14,300 kips
PEMSA - Offshore Drilling
Description
Description
Description






Year built:
2014
Delivery date:
2Q/2015
Rig type: Platform rig (modular)
Max drilling water depth: 25,000ft
Design:
Drillmec, 3,000 HP
Living quarters capacity: 100 men






Year built:
2014
Delivery date:
4Q/2015
Rig type: Platform rig (modular)
Max drilling water depth: 25,000ft
Design:
Drillmec, 3,000 HP
Living quarters capacity: 100 men
29
The Oil & Gas Opportunities for Controladora de Infraestructura Petrolera México
(CIPM) will focus on …
Main
Opportunities
that will be
evaluated
►The company's experience / ability to use its current
assets. Mainly focus on fields of land, and shallow waters
►Interesting economic potential. Proven fields is
privileged with measured reserves (2P) attractive for
exploitation and those close to existing fields with good
production.
►Cogeneration projects
Phase 2 Shallow waters areas
Round 1
Grupo Mexico has entered its registration request to participate in phase 2 of round one,
concerning the exploitation of oil fields in shallow waters.
30
Energy Division (MGE) Assets in Operation
Pipeline for Gas Transportation
Combined Cycle Power Plants
Wind Farm
Overview
Overview
Overview
► From Agua Prieta to Nacozari, Sonora
► Two combined cycle power plants
► One 74 MW Wind Farm
► 100 Km
► 250 MW each
► 16” Capacity
► Both in Nacozari, Sonora
► 37 turbines to produce 239 GWH per
year
► Juchitán, Oaxaca
► Operated by Mexicana de Cobre
(Minera Mexico)
► US$620MM invested in this assets
► Total investment of US$149 MM
► Both currently in operation
► For self supply and third parties (Grupo
Mexico´s related Company)
► For self supply in our refining complex
and C.C Power Plants
► El Paso Natural Gas Supplies the
natural gas
► Both for self supply
► Currently under operation since June
2014
These investments are generating significant value in terms of cost savings in power for the Mining Division and at the same time
generating significant cash-flows.
27
The investment Opportunities for MGE will focus on …
Current
Business
Focus
►Additional investments to generate energy
for own consumption.
►Combined cycle Power Plants
►Alternative Power “Green Energy”
Main
Opportunities
that will be
evaluated
• Wind Farms
• Hydroelectric
• Solar Fields
• Cogeneration
Potential
Business
Focus
►Licenses for Geothermic fields
Grupo Mexico is studying different energy generation projects to meet the consumption that is
currently supply by CFE.
We seek to satisfy 100% of Group Mexico energy demand and to supply third parties.
32
The investment Opportunities for MCC will focus on …
National Development Plan 2014-2018
Construction
(SCT)
Highways
• 46 new higways
Railroad
Airports
Ports
Public Transportation
• Optimize the current
railway operation
• Streghten the actual
port capacities
• New airports (E.G
Palenque)
• Upgrade the
• More railway lines to
increase the load by
train
• New ports
• Upgrade in some
airports to enhance
the conectivity in the
country
• New railways lines
for passengers
• New terminals at
existing ports
current fleet
• New bus terminals
• Does not include
Mexico City´s airport
Main Objectives:
• Global Logistics Platform
• Modern passenger mobility throughout the country
29
Reasons to Invest in Grupo Mexico
# 1 worldwide reserves with excellent organic growth prospects
Low cost leader with fully integrated operations
Strengthened position as top copper producer
Strong financial performance / investment grade credit rating
Growing railroad and logistics operation with
improved efficiency and profitability
Experienced Management team
Strategically positioned to execute on Infrastructure growth opportunity
31
Safe Harbor Statement
This presentation contains certain statements that are neither reported financial results nor other
historical information. These estimates are forward-looking statements within the meaning of the safeharbor provisions of the Mexican securities laws. These forward-looking estimates are subject to risk
and uncertainties that could cause actual results to differ materially from the expressed in the
forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond
Grupo Mexico’s ability to control or estimate precisely, such as future market conditions, commodity
prices, the behavior of other market participants and the actions of governmental regulators. Readers
are cautioned not to place undue reliance on these forward-looking statements, which speak only as
of the date of this presentation. Grupo Mexico does not undertake any obligation to publicly release
any revision to these forward-looking estimates to reflect events or circumstances after the date of this
presentation.
32