RESULTS
Fourth
2016
GRUPOQuarter
MÉXICO
FOURTH QUARTER RESULTS 2016

Relevant figures in US dollars1
Contact:
Marlene Finny
(55) 1103-5344
[email protected]
www.gmexico.com
Mexico City, February 1, 2017.
Grupo México, S.A.B. de C.V. (“Grupo México” “GMéxico” BMV: GMEXICOB).
 Copper production reached a new historical record of 1,054,414 tons
in 2016, a 16% increase compared to 2015, driven by the expansion of the
Buenavista mine, which increased its production by + 57%. We also
increased our production of gold + 68%, zinc + 20% and silver + 20%

Revenues in 4Q16 totaled US$2.1 billion, 4% higher than 4Q15 mainly due to higher copper
production and higher copper prices +8%.

In the Mining Division, we consolidated ourselves again as the Company with the lowest cash
cost worldwide. In 4Q16, the copper cash-cost per pound reached US$1.13, an improvement of
17% when compared with 4Q15.

Cost of sales in 2016 reached US$4.59 billion, 15% less than in 4Q15. In the Mining Division,
costs decreased 19% due to lower input prices and greater efficiencies and savings in our
operations. In the Transportation Division, it decreased 7% thanks to greater productivity and costsavings in dollar-denominated inputs. In the Infrastructure Division, it rose 25%, mainly due to the
start of operations of the Veracruz modular platform, higher natural gas costs, and the start of
operations of the second part of the Salamanca-Leon Toll Road.

EBITDA for 4Q16 totaled US$905 million, 52% greater than 4Q15. The Mining Division
reached US$635 million, translating into 102% growth vs. 4Q15. The Transportation Division
reached US$191 million, 24% growth vs. 4Q15. The Infrastructure Division achieved US$66
million in EBITDA with a 42% margin.

The consolidated net profit in the quarter reached US$251 million which compares favorably with
the US$87 million loss we had in 4Q15.

Capital investments were US$432 million for 4Q16 and totaled US$1.6 billion in the year.

On January 27, 2017, the Management Board declared the payment of a cash dividend of P$0.26
per share outstanding, to be made in a single installment as of March 1st, 2017.
(Thousand US Dollars)
Sales
Cost of Sales
Operating Income
EBITDA
EBITDA Margin (%)
Net Income
Profit Margin (%)
Investments / Capex
Employees
Fourth Quarter
2015
2016
Variance
US$000
%
January - December
2015
2016
Variance
US$000
%
1,990,333
2,062,564
72,231
3.6
8,178,888
8,173,492
(5,396)
(0.1)
1,312,299
1,119,133
(193,166)
(14.7)
4,774,696
4,591,462
(183,235)
(3.8)
343,242
609,340
266,098
77.5
2,182,416
2,298,569
116,153
5.3
596,943
905,276
308,333
51.7
3,016,952
3,361,694
344,742
11.4
338,571
(385.8)
356,886
41.2
(105,212)
(6.2)
30.0%
(87,759)
-4.4%
43.9%
250,812
36.9%
12.2%
456,398
431,761
30,264
30,657
865,784
10.6%
(24,637)
393
(5.4)
1.3
41.1%
1,222,670
15.0%
1,689,451
1,584,239
30,264
30,657
393
1
All figures are in dollars ("US$"), United States currency, under US GAAP, unless otherwise stated.
4Q16
www.gmexico.com
Page 1
1.3
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Highlights by Division
Mining Division
Constant Value Creation in Grupo Mexico.- Year after year, Grupo Mexico becomes a more competitive
organization in every segment where it participates. We remain committed to ensure sustained growth, striving to
increase our productivity and control costs, to always generate greater value for our investors.
At the end of January, the price of GMEXICO stock in dollars was US$2.93, 30% below the maximum price of
US$4.18 reached in April 2013. The average price of the stock since 2010 is US$2.99 , so it is currently trading
at a discount against its average even with a 53% increase in copper production and a 109% increase in the
EBITDA generated by the Transport Division since 2010 coupled with US$278 million additional EBITDA
generated by the Infrastructure Division.
Historical Stock Price GMEXICO 2000-2017 (USD)
4.50
US$4.18
US$4.14
4.00
US$2.99
3.50
US$2.93
3.00
2.50
2.00
1.50
01/17
10/16
07/16
01/16
04/16
10/15
07/15
04/15
10/14
01/15
07/14
04/14
01/14
07/13
10/13
04/13
01/13
10/12
04/12
07/12
01/12
10/11
07/11
01/11
04/11
10/10
07/10
04/10
01/10
1.00
Natural Hedge in USD.- During these times of high FX volatility, is it particularly worth highlighting our
privileged position to deal with exchange rate fluctuation. Because our income is related to commodities’ price
such as metals and energetics, which are in dollar terms, we have 84% of our consolidated revenues in dollars. On
the other hand, because we have most of our operations in Mexico and Peru, only 47% of our costs are in USD. So
our Company has a natural hedge in USD with a positive impact on results due to the current appreciation of the
dollar.
Mining Division
Transportation Division
Infrastructure Division
Weighted Average
4Q16
Revenues
USD
MXN
100%
35%
65%
60%
40%
84%
16%
USD
56%
19%
38%
47%
Cost of Sales
MXN
Soles
31%
13%
81%
62%
44%
0%
www.gmexico.com
Page 2
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Grupo Mexico’s Key Strengths
Strong Balance Sheet Provides Financial Flexibility for Continuing Growth
-
Debt duration exceeds 20 years.
Leading Company in Copper Extraction
-
#1 Copper Reserves Worldwide: more than 76 Million Tons of Contained Copper
Cost leader in the Industry: US$1.08 per pound of copper.
Great World Class Assets all in Investment Grade Countries
Third largest integrated producer of copper
Great Organic Growth Execution : new copper production record in 2016, with 1,054,414 tons
produced (+53% vs. 2010).
Best in Class Cash Flow Generation even through the low part of the Copper Price Cycle
Best Pipeline of Profitable Growth Projects: Increase of 53% in copper production to more than 1.6
million tons of copper in the next seven years.
o Toquepala (Peru) increase annual copper production by 100k MT to 217k MT in 2018 and
260k in 2019 and 3,100 tons of Moly per year
o Tia Maria (Arequipa, Peru) open-pit mine 120k MT per year SX-EW copper production.
o Aználcollar mine in Spain.- Underground polymetallic mine with a capacity of 102k tons of
equivalent zinc on an annual basis.
o Pilares (Sonora, Mexico) open-pit mine, 35k MT per year, production leveraging on La
Caridad infrastructure
o El Pilar (Sonora, Mexico) open-pit mine, 35k MT per year SX-EW copper production
o El Arco (Baja California, Mexico) open-pit mine, combined SX-EW and concentrator
operation: 200k MT of copper per year and significant gold by-product of 105,000 gold ounces
per year
o Los Chancas (Apurimac, Peru) open-pit mine, combined SX-EW and concentrator operation
100k MT of copper and 4,500 tons of molybdenum
o Buenavista Zinc (Sonora, Mexico – Buenavista mine complex) zinc open-pit mine 60k MT of
zinc per year
Largest and most profitable Transportation Company, with the greatest coverage in Mexico.
- Greatest coverage in Mexico and best connectivity to the US and access ports: Over 10,570 km of
-
railway tracks covering 81% of the national territory with 5 border crossings and 8 port terminals.
Most Economical Railway Company: It was determined by the OECD as the most inexpensive
railroad in the American continent.
Record EBITDA in 2016: US$775 million with a margin of 44%, this implies a growth of 12%
compared to 2015. EBITDA has increased by 296% since the beginning of the operation thanks to a
continuous growth in profitability through operational efficiencies.
Wide Experience reflected in the growth of the Infrastructure Division.
4Q16
Broad experience in Infrastructure: 80 years of experience in the construction of infrastructure and
industrial plants. Over 200 large works built in 24 states of the Mexican Republic.
Strong Growth in the Division: +US$200 million increase in EBITDA since 2012, implying 30%
CAGR (2012-2016).
Record High Power Generation: We had a 14% increase in power generation in 2016
New Record for the Leon-Salamanca Highway: +4 million cars and trucks on the Salamanca-Leon
highway.
Strategic position to execute growth opportunities in Infrastructure in Mexico.
www.gmexico.com
Page 3
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Mining Division
New copper production record.- During 2016, the Mining Division achieved a new record in copper production,
reaching 1,054,414 tons produced. This implies 16% growth compared to the 905,691 tons produced in 2015.
Projects in Mexico
We have concluded our $3.5 billion investment program in Mexico and all of the projects of this program will be in
full operation in 2017.
Buenavista Projects, Sonora.- The Buenavista program is being completed on time and $100 million below our
budget, including the Crushing, Conveying and Spreading System for Leachable Ore (Quebalix IV). This project will
reduce processing time as well as mining and hauling costs increasing production by improving SX-EW copper
recovery. The installed conveyor system is operating steadily. The project has reached 99% progress and $285.7
million has been invested from a budget of $444.2 million.
Projects in Peru
We are currently working on five copper projects in Peru with a total capital investment for these projects of $ 2,900
million.
Toquepala Expansion Project, Tacna.- This $1.2 billion project includes a new-state-of-the-art concentrator which
will increase annual copper production by 100k MT to 217k MT in 2018 and 260k MT in 2019, and will also increase
annual molybdenum production by 3,100 tons. Through December 31, 2016, we have invested $550.4 million in the
project. The project has reached 53% progress and is expected to be completed by the 2Q18.
Toquepala High Pressure Grinding Roll (HPGR) system.- The main objective of this project is to ensure that our
existing concentrator will operate at its maximum milling capacity of 60,000 tons per day, even with an increase of
the ore material hardness index. Additionally, recoveries will be improved and production enhanced with improved
ore crushing. The budget for this project is $40 million and we have invested $21.9 million as of December 31, 2016.
This project is expected to be completed by the 4Q17.
Cuajone´s Heavy Mineral Management Optimizing Project, Moquegua.- The project consists of installing a
primary crusher at the Cuajone mine pit with a conveyor system for moving the ore to the concentrator. The project
aims to optimize the hauling process by replacing rail haulage, thereby reducing operating and maintenance costs as
well as the environmental impact of the Cuajone mine. The crusher will have a processing capacity of 43.8 million
tons per year. The main components, including the crusher and the 7 kilometer overland conveyor belt, have been
acquired and we are well underway with electromechanical assembly. As of December 31, 2016, we have invested
$150.9 million in this project out of the approved capital budget of $215.5 million. The project has reached 80%
progress and is expected to be completed in the 2Q17.
The Cuajone tailing thickeners project at the concentrator will replace two of the three existing thickeners with a
new hi-rate thickener. The purpose is to streamline the concentrator flotation process and improve water recovery
efficiency, increasing the tailings solids content from 54% to 61%, thereby reducing fresh water consumption and
replacing it with recovered water. As of December 31, 2016, we have almost completed the engineering and
procurement process and have started the excavation and civil works. We have invested $14.4 million in this project
out of the approved capital budget of $30 million. The project has reached 62% progress and we expect it to be
completed in the 2Q17.
Tia Maria.- We have completed all engineering and have successfully obtained the environmental impact assessment.
We are currently working to obtain the construction license for this 120k MT of copper per year SX-EW greenfield
project with a total capital budget of $1,400 million.
4Q16
www.gmexico.com
Page 4
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Transportation Division
Most Inexpensive Railroad.- The OECD determined that Grupo México Transportes is the most inexpensive
railroad in the American continent and, when compared to the railways of the continent, remains the leader in prices
with an average tariff of US$0.29 cents per ton-km. The latter has fallen even further in recent months due to the
devaluation of the peso against the dollar reaching US $0.24 cents
Strong Growth in Revenues in Pesos.- Although the Mexican currency depreciated by 18%, revenues in dollar
terms declined by only 7% in relation to 2015. In pesos, revenues increased by 10%.
Strong Investment in our Fleet.- We invested US$360 in 2016, of which US$167 million were invested in the
purchase of 50 new state-of-the-art locomotives, in line with our focus on continuous improvement and constant
creation of operational efficiencies.
Double Digit Growth in EBITDA.- We grew our EBITDA by 11% in dollars and 31% in pesos during the year
compared to 2015.
Continued Growth for 2017.- For this year, US$314 million were authorized for capital expenditures, we expect
to invest roughly 60% in infrastructure and capacity projects to maintain a safe and consistent operation. With this,
we will be able to meet the volume expectations of the most important customers.
Increase in Average Speed.- The average speed of our trains increased from 28.5 km/hr in 2015 to 29.6 km/hr in
2016 in spite of an increase in insecurity during the year. During December, we reached an average speed of 32.8
km/hr as a result of a significant improvements in security, due to actions carried out jointly with the army and
federal and state authorities.
Metals Segment Growth.- This segment accumulated a 12.0% growth in Tons-Km, due to the demand from related
products in this segment.
Automotive Segment Growth.- The segment showed accrued growth of 2.4% in Ton-Km. This is mainly due to the
rise in vehicle exports across the border at Piedras Negras and Ciudad Juarez.
Growth of the Agriculture Segment.- The segment showed 3% accrued growth in Tons-Km, due to greater purchases
of basic grain imports, which caused greater movement across the border.
Growth in the Intermodal Segment.- This segment accrued 7.0% growth in Ton-Km. This growth is due to a greater
number of containers hauled, mainly with an increase in cross-border traffic of auto parts and consumer products from
Monterrey and Silao to Chicago.
Infrastructure Division
Good Traffic on the Salamanca-Leon Highway.- During 4Q16, the highway reported record revenues of $155
million pesos and a weighted average daily traffic (ADT) of 11,914 vehicles; the equivalent traffic translates into
17,730 vehicles. 4Q16 revenues grew 6.15%, and weighted ADT 11.28% vs. 3Q16. Vehicle traffic surpasses the flow
agreed with the Ministry of Communications and Transportation (SCT in Spanish).
New Record Energy Generation.- In 2016, we increased our power generation by 14% compared to 2015,
reaching a new record by generating 3,136,980 MW-hr.
Greater revenues in Mexico Compañia Constructora.- 4Q16 sales totaled US$43 million, 7% greater than in the
same period a year earlier, due to the production of the following works: Ferromex Galibos, Guadalajara, FerromexMonterrey, Ferromex-Aguascalientes, and Ferromex Silao.
4Q16
www.gmexico.com
Page 5
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Financing
2015
Gross
(1)
As of December 31, 2016
Gross
Cash &
Net
(1)
(2)
(US$000)
Grupo México
Americas Mining Corporation
Southern Copper Corporation
Asarco
GMéxico Transportes
GFM - Ferromex
5,951,461
5,954,180
597,349
90,809
66,593
41,255
25,338
-
-
95,597
(95,597)
241,430
245,294
(3,864)
Ferrosur
México Proyectos y Desarrollos
Grupo Mexico (Consolidated)
36,784
26,109
40,766
(14,657)
1,185,680
1,043,828
88,258
955,570
7,559,835
7,332,141
1,248,601
6,083,539
Debt
Debt
Banks
Debt
-
-
42,975
(42,975)
-
-
97,107
(97,107)
295,100
5,356,831
(1) include Debt Fees
(2) include Short Term Investment
Grupo Mexico maintains a solid balance sheet with a low leverage and a net debt to EBITDA ratio of 1.95x. 94%
of the debt contracts are in US dollars, and 6% are in pesos. 92% of the debt has a fixed rate. Moreover, GMexico has
a comfortable debt maturities schedule; we have no significant capital payments until 2035.
The Company’s financial soundness enables it to be well positioned to face the difficult economic environment that
affects its various Divisions and maintain its commitment to continue with its aggressive expansion program, as well
as to analyze possible opportunities that may arise in the market.
Grupo Mexico Maturities
As of December 31st, 2016
1,600.0
1,400.0
1,200.0
1,000.0
800.0
600.0
400.0
200.0
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045
División Minera
4Q16
División Transporte
www.gmexico.com
División Infraestructura
Page 6
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Mining Division
Americas Mining Corporation
Key Figures
(Thousand US Dollars)
Sales
Cost of Sales
Operating Income
EBITDA
EBITDA Margin (%)
Net Income
Profit Margin (%)
Fourth Quarter
2015
Variance
US$000
%
2016
January - December
2015
2016
Variance
US$000
%
1,487,428
1,600,550
113,122
7.6
6,008,688
6,209,957
201,269
3.3
1,115,930
907,661
(208,269)
(18.7)
3,783,133
3,751,103
(32,030)
(0.8)
131,956
448,176
316,220
239.6
1,372,839
1,531,006
158,167
11.5
314,785
634,558
319,773
101.6
2,026,461
2,287,903
261,441
12.9
548,951
134.9
21.2%
39.6%
(188,264)
232,973
-12.7%
Investments / Capex
33.7%
421,236
(223.7)
406,798
14.6%
316,905
6.8%
304,511
(12,394)
(3.9)
1,222,075
36.8%
955,749
15.4%
1,209,579
(12,496)
(1.0)
Average Metal Prices
Copper
1Q
2Q
3Q
2015
2016
2016
Fourth Quarter
2016
2015
Var.
%
January - December Var.
2016
2015
%
($cts/Pound)
2.11
2.13
2.16
2.39
2.20
8.6
2.20
2.51
(12.4)
Molybdenum ($dlls/Pound)
5.27
6.89
6.94
6.58
4.75
38.5
6.42
6.59
(2.6)
Zinc
($cts/Pound)
0.76
0.87
1.02
1.14
0.73
56.3
0.95
0.88
8.2
Silver
($dlls/Ounce)
14.87
16.83
19.59
17.12
14.75
16.1
17.10
15.68
9.1
Gold
($dlls/Ounce)
1,181.21
1,259.36
1,334.82
1,217.98
1,104.40
10.3
1,248.34
1,160.11
7.6
Lead
($cts/Pound)
Sulfuric Acid ($dlls/Ton)
0.79
0.78
0.85
0.98
0.76
27.9
0.85
0.81
4.7
46.35
49.78
51.54
55.16
69.18
(20.3)
50.52
71.42
(29.3)
So urce: Co pper & Silver - COM EX; Zinc & Go ld - LM E;
M o lybdenum - M etals Week Dealer Oxide, Sulfuric A cid - A M C
Copper.- Copper production in 2016 grew 16% vs. 2015 to 1,054,414 tons. This translates into an increase of 148,723
tons, as a result of greater production at Buenavista (+57%), mainly.
Molybdenum.- Molybdenum production in 2016 decreased 7% to 21,736 tons compared to the same period a year
earlier, given a lower production at Toquepala (-20%) and Cuajone (-12%), due to lower ore grades.
Zinc.- Zinc production in the year increased 20% to 73,984 tons compared to 61,905 tons in 2015. This increase
resulted from the start of operations of the Santa Eulalia mine following the problems caused by the flood that affected
production in 2015.
Silver.- In 2016, silver production increased +20% to 17.85 million ounces compared to 2015, given a greater
production in Buenavista (+103%).
Gold.- Gold production increased (+68%) to 68,651 ounces, given a higher production in Buenavista (+126%).
4Q16
www.gmexico.com
Page 7
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Mining Production
Mining Division
Copper
Production
Sales
Molybdenum
Production
Sales
Zinc
Production
Sales
Silver
Production
Sales
Gold
Production
Sales
Sulfuric Acid
Production
Sales
Fourth Quarter
2015
2016
(MT)
($US MM)
248,713
1,214,842
263,605
1,307,224
(MT)
($US MM)
5,993
47,497
(MT)
($US MM)
Variance
%
14,893
92,382
6.0
7.6
5,280
59,332
(714)
11,835
16,434
49,380
17,110
73,225
('000 Oz)
($US MM)
3,877
62,597
(Oz)
($US MM)
(MT)
($US MM)
January - December
2015
2016
Variance
%
905,691
4,940,008
1,054,414
5,032,227
(11.9)
24.9
23,368
239,232
21,736
268,050
(1,632)
28,818
(7.0)
12.0
676
23,845
4.1
48.3
61,905
210,702
73,984
234,348
12,079
23,646
19.5
11.2
3,793
77,698
(84)
15,102
(2.2)
24.1
13,638
227,554
15,196
294,797
1,558
67,244
11.4
29.6
51,761
56,893
33,537
40,710
(18,224)
(16,183)
(35.2)
(28.4)
156,001
177,958
164,864
207,364
8,863
29,406
5.7
16.5
729,135
35,908
587,980
21,518
(141,155)
(14,390)
(19.4)
(40.1)
2,703,588
134,708
2,691,371
95,390
(12,217)
(39,318)
(0.5)
(29.2)
148,723
92,219
16.4
1.9
Cash Cost
In 4Q16, operating cash costs per pound of copper reached US$1.13, vs. US$1.36 (-17%) in the same period last year.
The reduction was due to operating improvements resulting from greater low-cost production from the Buenavista
expansions and higher byproduct prices: Silver (+16%), zinc (+56%), and molybdenum (+39%).
Sales Distribution
The contribution of each metal to AMC’s accrued sales in 2016 is depicted below
Zinc
Sulfuric Acid 3.8%
1.5%
Gold
3.3%
Others
0.6% Lead
0.7%
Molybdenum
4.3%
Silver
4.8%
Copper
81.0%
4Q16
www.gmexico.com
Page 8
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Transportation Division
Key Figures
(Thousand US Dollars)
Load Volume (MillionTons/Km)
Moved Cars
Sales
Cost of Sales
Operating Income
EBITDA
EBITDA Margin (%)
Net Income
Profit Margin (%)
Investments / Capex
Fourth Quarter
2015
2016
Variance
US$000
%
13,563
13,226
300,706
304,987
4,281
450,520
417,190
277,732
257,472
114,182
107,058
(7,124)
(6.2)
154,758
191,478
36,720
34.4%
65,424
14.5%
119,021
(337)
(2.5)
54,220
54,445
225
0.4
1,210,057
1,231,539
21,482
1.8
(33,330)
(7.4) 1,890,863
1,767,303
(123,560)
(6.5)
(20,260)
(7.3) 1,126,522
1,032,752
(93,770)
(8.3)
528,326
521,192
(7,134)
(1.4)
23.7
695,154
774,961
79,807
11.5
23,854
36.5
303,955
53,065
17.5
1,646
1.4
377,842
(18,012)
(4.8)
1.4
45.9%
89,278
36.8%
21.4%
120,667
January - December
Variance
2015
2016
US$000
%
43.8%
357,020
16.1%
20.2%
359,830
The Transportation Division’s total revenues during 2016 amounted US$1.8 billion, 7% lower than in 2015. This is
due to the conversion effect resulting from a 17.7% devaluation of the peso vs. the USD. Revenues in peso terms
showed an accumulated increase of 9.8% up to 4Q16, compared to a year earlier.
Volumes transported in 4Q16 increased 0.4% in tons per kilometer compared to the same period of 2015.
Contribution by segment in tons-kms and revenues up to December 31, 2016:
Tons – Km.
Revenues per Segment
Automotive,
2,809
Cement, 4%
Industrial, 2,891
Others, 5%
Agricultural, 29%
Siderurgical, 7%
Cement, 3,028
Agricultural,
20,063
Energy, 3,781
Energy, 8%
Intermodal,
4,312
Intermodal, 8%
Automotive, 12%
Chemical, 8%
Chemical, 4,857
Mineral, 9%
4Q16
Industrial, 10%
Mineral, 7,412
Siderurgical,
5,292
www.gmexico.com
Page 9
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
EBITDA in the quarter and accrued at December 2016 grew 24 and 12% vs. the same period of 2015, going from
US$155 to US$191 million and from US$695 to US$775 million, respectively. The quarter’s margin went from 34%
to 46%, while the accrued figure improved significantly from 37% to 44% compared to the previous year, respectively.
EBITDA growth in peso terms for the year ended in 2016 was 15.4% vs. 2015.
Capital Investments.- During 2016, capital investments totaled $360 million, including the purchase of 50
locomotives, and the development of infrastructure and telecommunications projects, which will bring greater
operating efficiencies.
4Q16
www.gmexico.com
Page 10
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Infrastructure Division
Key Figures
(Thousand US Dollars)
Sales
Cost of Sales
Operating Income
EBITDA
EBITDA Margin (%)
Net Income (Loss)
EBITDA Margin (%)
Investments / Capex
Fourth Quarter
2015
2016
Variance
US$000
%
January - December
2015
2016
Variance
US$000
%
189,084
157,887
(31,197)
(16.5)
616,183
608,265
(7,918)
(1.3)
72,795
90,742
17,947
24.7
283,723
315,645
31,922
11.3
84,163
35,588
(48,576)
(57.7)
218,857
167,644
(51,213)
(23.4)
122,162
65,799
(56,363)
(46.1)
308,922
278,631
(30,291)
(9.8)
(34,424)
(26.7)
(74,704)
(83.4)
64.6%
52,065
27.5%
20,472
41.7%
18,400
50.1%
(33,665)
(64.7)
11.7%
6,583
128,710
20.9%
(13,889)
(67.8)
89,534
45.8%
94,287
15.5%
14,830
During 2016, consolidated sales in the Infrastructure Division reached US$608 million, 1% less than in the previous
year.
EBITDA in the Division reached US$279 million, representing a 10% decrease vs. the same period a year earlier; the
decrease is mainly due to the adjustment in PEMSA’s rates and less construction works due to completion of the
Salamanca-Leon highway in 2015.
Capital investments.- Up to December 2016, we have invested US$15 million in the Infrastructure Division. Among
the investments, we should note US$5 million for Tamaulipas and US$3 million for the Salamanca-Leon highway
(recorded as an intangible asset).
*****
4Q16
www.gmexico.com
Page 11
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Company Profile
Grupo Mexico “GMéxico” is a holding company whose main activities are: (i) mining, where it is one of the
largest integrated copper producers worldwide; (ii) the vastest railway system in Mexico; and (iii) engineering,
procuring, construction, and drilling services. These business lines are grouped under the following subsidiaries:
GMexico’s Mining Division is represented by its subsidiary Americas Mining Corporation (“AMC”), whose main
subsidiaries are Southern Copper Corporation (“SCC”) in Mexico and Peru, and Asarco In the USA. Both companies
together hold the largest copper reserves in the world. SCC trades on the New York and Lima stock exchanges. SCC’s
shareholders, directly or through subsidiaries, are: GMexico (88.9%) and other shareholders (11.1%). It has mines,
metallurgical plants and exploration projects in Peru, Mexico, the USA, Spain, Chile, Argentina, and Ecuador. Asarco
was reincorporated into GMexico on December 9, 2009. It has 3 mines and 1 smelting plant in Arizona, and 1 refinery
in Texas.
GMexico’s Transportation Division is represented by its subsidiary Infraestructura y Transportes México, S.A. de
C.V. (“ITM”) and Grupo México Transportes S.A. de C.V. Its main subsidiaries are Grupo Ferroviario Mexicano,
S.A. de C.V. (“GFM”), Ferrocarril Mexicano, S.A. de C.V. (“Ferromex”), Ferrosur, S. A. de C. V. (“Ferrosur”),
Intermodal México, S.A. de C.V., and Texas Pacifico, LP, Inc. Ferromex is the largest railway company and has the
largest coverage in Mexico. Its network spans 8,111 km. of railways covering roughly 71% of the Mexican territory.
Ferromex’s lines connect at five border points with the USA, as well as at four ports on the Pacific Coast, and two on
the Gulf of Mexico. GMexico holds 55.% of Ferromex, Union Pacific holds 26%, and Grupo Carso-Sinca Inbursa,
18.5%. Ferrosur’s railway network spans 1,549 km. covering the center and southeast of the country. It serves the
states of Tlaxcala, Puebla, Veracruz, and Oaxaca, mainly, and has access to the Veracruz and Coatzacoalcos ports in
the Gulf of Mexico. GMexico holds 74.99% of Ferrosur, and Grupo Carso-Sinca Inbursa holds 25.01%.
GMexico’s Infrastructure Division is represented by its subsidiary México Proyectos y Desarrollos, S.A. de C.V.
(“MPD”). Its main subsidiaries are México Compañía Constructora, S.A. de C.V. (MCC) y Grupo México Servicios
de Ingeniería, S.A. de C.V. (“GMSI”), Controladora de Infraestructura Petrolera México, S.A. de C.V. (“PEMSA”),
Controladora de Infraestructura Energética México, S.A. de C.V. (“CIEM”), and Concesionaria de Infraestructura del
Bajío, S.A. de C.V. (“CIBSA”). MPD, PEMSA, MCC, GMSI, and CIEM are controlled 100% by GMéxico. MPD
and MCC participate in engineering, procuring, and construction activities for infrastructure works. GMSI’s business
line is integrated project engineering. PEMSA offers drilling services for oil and water exploration, and related added
value services, such as cementation engineering, and directional drilling. CIEM’s business line is energy generation
through two combined cycle plants and a wind farm. CIBSA operates and maintains a highway concession joining
Salamanca and Leon.
___________________________
This report includes certain estimates and future projections that are subject to risks and uncertainty of their real
results, which could differ significantly from the figures expressed. A lot of these risks and uncertainty are related to
risk factors that GMexico cannot control or estimate precisely, such as future market conditions, metal prices, the
performance of other market participants, and the actions of government regulators, all of which are described in detail
in the Company’s annual report. GMexico is under no obligation to publish a revision of these future projections to
reflect events or circumstances that may take place following the release of this report.
4Q16
www.gmexico.com
Page 12
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
Conference call to discuss the results of the fourth quarter of 2016
Mexico City, February 01, 2017—Grupo Mexico, S.A.B. de C.V. (“Grupo México” -BMV: GMEXICOB)
will hold its conference call to comment on the results for the fourth quarter of 2016 with the financial
community on February 07, 2017 at 11:00 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:
(888) 771-4371 (US participants)
(847) 585-4405 (participants outside the US)
Confirmation code: 44280308
A repetition of the call shall be available 2 hours following the end of the call and until February 16, 2017.
Afterwards, a transcription of the call shall be made available via Grupo Mexico’s website.
(888) 843-7419 (participants from the US)
(630) 652-3042 (participants outside the US)
Confirmation code: 44280308#
4Q16
www.gmexico.com
Page 13
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
GRUPO MEXICO, S.A.B. DE C.V. (GM)
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)
STATEMENT OF EARNINGS
Net sales
Cost of sales
Exploration
Gross profit
Gross margin
Administrative expenses
Environmental remediation
EBITDA
Depreciation, amortization and depletion
Operating income
Operating margin
Interest expense
Interest income
(Gain) loss in investments
Other (income) expense, net
Earnings before Tax
Taxes
Participation in subsidiary not consolidated and
associated
Net Earnings
Net income attributable to the non-controlling
interest
Net income attributable to GM
BALANCE SHEET
Cash and cash equivalents
Restricted cash
Notes and accounts receivable
Inventories
Prepaid and others current assets
Total Current Assets
Property, plant and equipment, Net
Leachable material, net
Other long term assets
Total Assets
Liabilities and Stockholders' Equity
Current - term debt
Accumulated liabilities
Current Liabilities
Long-term debt
Other non-current liabilities
Total Liabilities
Stockholders equity
Other equity accounts
Retaining earnings
Total Stockholders' equity
Non-controlling interest.
Total Liabilities and Equity
CASH FLOW
Net earnings
Depreciation, amortization and depletion
Deferred income taxes
Participation in subsidiary not consolidated and
associated
Other Net
Changes in assets and liabilities
Cash generated by operating activities
Capital expenditures
Purchase of El Pilar Concesion
Restricted cash
Stock reimbursement of permanent
shares
Other - Net
Cash used in investing activities
Debt incurred
Debt repaid
Dividends paid
SCC common shares buyback
Cash used in financing activities
Effect of exchance rate changes on cash and cash
equivalents
Net increase (decrease) cash & cash equivalents
Cash and cash equivalents - Beginning of year
Cash and cash equivalents - End of year
4Q16
Accumulated
Quarters
(Thousands of US Dollars)
2015
8,178,888
4,769,938
53,938
3,355,012
41%
241,918
45,003
3,016,952
885,674
2,182,416
27%
298,888
(24,070)
(249,174)
101,271
2,055,501
943,084
Variance
(5,396)
(179,109)
(13,008)
186,721
(1,962)
(829)
(29,084)
13,810
284,162
(69,455)
2016
8,173,492
4,590,829
40,930
3,541,733
43%
219,114
3,361,694
1,024,050
2,298,569
28%
385,550
(19,329)
(364,762)
78,791
2,218,319
758,850
(8,252)
(49,852)
455
353,162
(27,801)
1,487,270
(22,398)
1,134,816
(5,403)
352,454
37,907
(87,759)
14,591
338,571
264,599
1,222,670
269,031
865,784
(4,432)
356,886
(353,876)
(41,109)
87,966
54,192
205,976
(46,851)
329,962
40,694
202,235
526,040
1,248,601
43,949
850,020
1,033,987
937,541
4,114,097
13,800,331
846,170
3,358,431
22,119,029
1,602,477
85,058
762,054
979,795
731,564
4,160,948
13,470,369
805,476
3,156,196
21,592,989
(353,876)
(41,109)
87,966
54,192
205,976
(46,851)
329,962
40,694
202,235
526,040
144,589
129,689
1,254,174
1,346,762
1,398,763
1,476,451
7,415,246
7,202,452
1,678,391
1,517,857
10,196,760 10,492,400
2,003,496
2,003,496
(2,755,153) (2,546,448)
11,111,931 10,115,023
9,572,071
10,360,274
1,528,518
1,561,996
21,592,989
22,119,029
-
(14,900)
92,587
77,688
(212,794)
(160,534)
(295,641)
(208,705)
996,908
788,203
33,478
526,040
-
144,589
129,689
1,254,174
1,346,762
1,398,763
1,476,451
7,415,246
7,202,452
1,678,391
1,517,857
10,196,760 10,492,400
2,003,496
2,003,496
(2,755,153) (2,546,448)
11,111,931 10,115,023
9,572,071
10,360,274
1,528,518
1,561,996
21,592,989
22,119,029
-
303,311
265,939
(7,001)
(49,851)
237,021
96,403
353,162
28,918
(103,404)
1,487,270
1,024,050
(1,914)
1,134,816
885,674
101,238
352,454
138,376
(103,152)
(7,797)
(24,175)
(61,342)
468,935
(431,761)
38,959
(8,252)
72,284
(158,158)
189,447
(456,398)
52,060
455
(96,459)
96,815
279,487
24,637
(13,101)
(27,801)
(349,651)
(363,628)
1,768,326
(1,584,239)
41,109
(22,398)
(165,857)
(286,835)
1,646,638
(1,689,451)
(100,448)
6,687
(5,403)
(183,794)
(76,793)
121,688
105,212
100,448
34,422
(5,722)
(398,524)
(37,986)
(61,106)
(99,092)
68,838
(335,500)
59,637
(46,744)
(96,350)
(280,012)
(363,469)
(74,560)
(63,024)
(59,637)
8,758
35,244
280,012
264,377
15,074
(44,567)
(1,572,623)
5,000
(144,771)
(292,313)
(71,736)
(503,820)
(3,576)
18,650
16,287
(60,855)
252,793
(1,825,416)
2,153,928 (2,148,928)
279,327
(424,098)
255,659
(547,972)
932,628
(1,004,364)
(681,314)
177,494
(2,498)
(31,179)
1,279,780
1,248,601
(11,189)
(520,710)
2,123,188
1,602,477
8,691
489,531
(843,408)
(353,876)
(45,759)
(353,876)
1,602,477
1,248,601
Q4-16
2,062,564
1,119,143
9,766
933,656
45%
58,377
905,276
265,939
609,340
30%
93,872
(5,444)
(21,230)
19,731
522,411
226,897
Q4-15
1,990,333
1,311,332
13,766
665,235
33%
63,472
21,500
596,943
237,021
343,242
17%
95,834
(4,615)
7,854
5,920
238,249
296,352
Variance
72,231
(192,189)
(4,000)
268,420
(7,796)
303,310
52,498
250,812
1,248,601
43,949
850,020
1,033,987
937,541
4,114,097
13,800,331
846,170
3,358,431
22,119,029
1,602,477
85,058
762,054
979,795
731,564
4,160,948
13,470,369
805,476
3,156,196
21,592,989
www.gmexico.com
(5,095)
(21,500)
308,333
28,918
266,098
(36,608)
(37,893)
1,640,370
1,602,477
(22,804)
(45,003)
344,742
138,376
116,153
86,662
4,741
(115,588)
(22,480)
162,818
(184,233)
(14,900)
92,587
77,688
(212,794)
(160,534)
(295,641)
(208,705)
996,908
788,203
33,478
526,040
-
(9,151)
(315,984)
(37,893)
(353,876)
Page 14
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
AMERICAS MINNING CORPORATION (AMC)
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)
(Thousands of US Dollars)
STATEMENT OF EARNINGS
Net sales
Cost of sales
Exploration
Gross profit
Gross margin
Administrative expenses
Environmental remediation
EBITDA
Depreciation, amortization and depletion
Operating income
Operating margin
Interest expense
Interest income
(Gain) loss in investments
Other (income) expense, net
Earnings before Tax
Taxes
Participation in subsidiary not consolidated and
associated
Net Earnings
Net income attributable to the non-controlling
interest
Net income attributable to AMC
Accumulated
Q4-15
1,487,428
1,114,963
13,766
358,699
24%
33,669
21,500
314,785
171,575
131,956
9%
69,587
(2,522)
25,492
11,346
28,054
223,302
Variance
113,122
(207,291)
(4,000)
324,414
2015
6,008,688
3,778,375
53,938
2,176,375
36%
128,107
45,003
2,026,461
630,426
1,372,839
23%
224,347
(11,209)
23,725
26,937
1,109,040
629,808
Variance
201,269
(27,904)
(13,008)
242,181
4,633
(3,867)
(157,458)
11,464
461,448
21,727
2016
6,209,957
3,750,471
40,930
2,418,556
39%
125,282
2,287,903
762,268
1,531,006
25%
305,699
(13,735)
(451,901)
31,793
1,659,151
643,053
(6,471)
250,944
(7,336)
(187,913)
864
438,857
(23,901)
1,039,999
(16,790)
496,022
(7,111)
543,977
17,971
232,973
351
(188,264)
17,621
421,237
84,250
955,749
89,224
406,798
(4,974)
548,951
(320,191)
(30,568)
164,333
55,347
123,282
(7,797)
470,892
40,694
371,845
875,634
735,711
7,521
669,608
944,827
792,099
3,149,766
10,330,325
846,170
2,073,674
16,399,934
1,055,902
38,089
505,276
889,479
668,817
3,157,563
9,859,432
805,476
1,701,829
15,524,300
(320,191)
(30,568)
164,333
55,347
123,282
(7,797)
470,892
40,694
371,845
875,634
27,707
27,707
(21,497)
(118,764)
(112,554)
(7,520)
955,749
948,229
39,959
875,634
-
24,332
24,332
1,563,561
1,535,854
1,587,893
1,560,186
5,996,441
6,017,938
1,125,162
1,243,926
8,709,496
8,822,050
1,056,021
1,056,021
(2,449,559) (2,442,040)
8,394,046
7,438,297
7,000,508
6,052,278
689,930
649,972
16,399,934
15,524,300
-
BALANCE SHEET
Cash and cash equivalents
Restricted cash
Notes and accounts receivable
Inventories
Prepaid and others current assets
Total Current Assets
Property, plant and equipment, Net
Leachable material, net
Other long term assets
Total Assets
735,711
7,521
669,608
944,827
792,099
3,149,766
10,330,325
846,170
2,073,674
16,399,934
Liabilities and Stockholders' Equity
Long-term debt
Other non-current liabilities
Current Liabilities
Long term debt
Other long term liabilities
Total Liabilities
Stockholders equity
Other equity accounts
Retained earnings
Total Stockholders' equity
Non-controlling interest.
Total Liabilities and Equity
24,332
24,332
1,563,561
1,535,854
1,587,893
1,560,186
5,996,441
6,017,938
1,125,162
1,243,926
8,709,496
8,822,050
1,056,021
1,056,021
(2,449,559) (2,442,040)
8,394,046
7,438,297
7,000,508
6,052,278
689,930
649,972
16,399,934
15,524,300
-
CASH FLOW
Net earnings
Depreciation, amortization and depletion
Deferred income taxes
Participation in subsidiary not consolidated and
associated
Others Net
Changes in assets and liabilities
Cash generated by operating activities
Capital expenditures
Purchase of El Pilar Concesion
Restricted cash
Capital reimbursement
Cash used in investing activities
Debt incurred
Debt repaid
Dividends paid
SCC common shares buyback
Cash used in financing activities
Effect of exchance rate changes on cash and cash
equivalents
Net increase (decrease) cash & cash equivalents
Cash and cash equivalents - Beginning of year
Cash and cash equivalents - End of year
4Q16
Quarters
Q4-16
1,600,550
907,671
9,766
683,113
43%
34,424
634,558
200,513
448,176
28%
74,220
(6,390)
(131,966)
22,809
489,502
245,029
1,055,902
38,089
505,276
889,479
668,817
3,157,563
9,859,432
805,476
1,701,829
15,524,300
756
(21,500)
319,773
28,938
316,220
250,944
200,513
19,458
(187,913)
171,575
75,912
438,857
28,938
(56,454)
1,039,999
762,268
(5,601)
(6,471)
(117,646)
(107,353)
239,445
(304,511)
290
11,816
(292,405)
(6,083)
(4,287)
(10,370)
(7,336)
84,383
(62,100)
74,522
(316,905)
2,339
1,396
(313,170)
(6,083)
(3,882)
(280,012)
(289,977)
864
(202,028)
(45,254)
164,923
12,394
(2,049)
10,420
20,765
(405)
280,012
279,607
(23,901)
(413,050)
(266,308)
1,093,407
(1,209,579)
30,568
(134,079)
(1,313,090)
(24,332)
(15,551)
(71,736)
(111,619)
13,904
(49,427)
785,138
735,711
(6,958)
(535,583)
1,591,485
1,055,902
20,862
486,157
(806,347)
(320,190)
11,112
(320,190)
1,055,901
735,711
www.gmexico.com
496,022
630,426
13,317
(2,825)
(45,003)
261,442
131,842
158,167
81,352
(2,526)
(475,626)
4,857
550,111
13,245
27,707
27,707
(21,497)
(118,764)
(112,554)
(7,520)
955,749
948,229
39,959
875,634
543,977
131,842
(18,918)
(16,790)
(7,111)
80,079
(493,129)
(150,387)
(115,921)
1,052,667
40,741
(1,222,075)
12,496
(100,448)
100,448
10,090
20,478
(153,889)
19,810
(1,466,322)
153,232
2,045,790 (2,045,790)
(290,332)
266,000
(38,006)
22,455
(1,004,364)
932,628
713,088
(824,707)
(483)
298,950
756,952
1,055,902
11,595
(619,140)
298,949
(320,190)
Page 15
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
GMÉXICO TRANSPORTES, S. A. DE C.V. (GMXT)
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)
(Thousands of US Dollars)
STATEMENT OF EARNINGS
Net sales
Cost of sales
Gross profit
Gross margin
Administrative expenses
EBITDA
Depreciation, amortization and depletion
Operating Income
Operating margin
Interest expense
Interest income
Other (income) expense - Net
Earnings before Tax
Taxes
Participation in subsidiary not consolidated and
associated
Net Earnings
Net income attributable to the non-controlling
interest
Net income attributable to ITM
BALANCE SHEET
Cash and cash equivalents
Notes and accounts receivable
Inventories
Prepaid and others current assets
Total Current Assets
Property, plant and equipment - Net
Other long term assets
Total Assets
Liabilities and Stockholders' Equity
Current portion of long-term debt
Accumulated liabilities
Current Liabilities
Long-term debt
Other non-current liabilities
Other liabilities
Total Liabilities
Stockholders equity
Other equity accounts
Retaining earnings
Total Stockholders' equity
Non-controlling interest.
Total Liabilities and Equity
CASH FLOW
Net earnings
Depreciation, amortization and depletion
Deferred income taxes
Participation in subsidiary not consolidated and
associated
Other Net
Changes in assets and liabilities
Cash generated by operating activities
Capital expenditures
Other
Dividends received
Cash used in investing activities
Debt repaid
Dividends received (paid) - Net
Cash used in financing activities
Effect of exchance rate changes on cash and cash
equivalents
Net increase (decrease) cash & cash equivalents
Cash and cash equivalents - Beginning of year
Cash and cash equivalents - End of year
4Q16
Quarters
Q4-16
417,190
257,472
159,718
38%
15,428
191,478
37,232
107,058
26%
5,595
(2,645)
(8,660)
112,768
2,288
Accumulated
Q4-15
Variance
450,520
(33,330)
277,732
(20,260)
172,788
(13,070)
38%
20,425
(4,997)
154,758
36,720
38,181
(949)
114,182
(7,124)
25%
6,128
(533)
(1,684)
(961)
(3,015)
(5,645)
112,753
15
30,206
(27,918)
2016
2015
Variance
1,767,303 1,890,863 (123,560)
1,032,752 1,126,522
(93,770)
734,551
764,341
(29,790)
42%
40%
62,450
76,862
(14,412)
774,961
695,154
79,807
150,909
159,153
(8,244)
521,192
528,326
(7,134)
29%
28%
22,841
27,398
(4,557)
(10,392)
(6,187)
(4,205)
(18,667)
(11,027)
(7,640)
527,410
518,142
9,268
80,753
143,760
(63,007)
(1,325)
111,805
(916)
83,463
(409)
28,342
(3,900)
450,557
(5,608)
379,990
1,708
70,567
22,527
89,278
-
18,039
65,424
-
4,488
23,854
-
93,537
357,020
-
76,035
303,955
-
17,502
53,065
-
381,657
127,611
35,834
75,727
620,829
1,690,985
219,975
2,531,789
335,023
170,259
38,937
60,394
604,613
1,753,908
254,499
2,613,020
381,657
127,611
35,834
75,727
620,829
1,690,985
219,975
2,531,789
335,023
170,259
38,937
60,394
604,613
1,753,908
254,499
2,613,020
46,634
(42,648)
(3,103)
15,333
16,216
(62,923)
(34,524)
(81,231)
46,634
(42,648)
(3,103)
15,333
16,216
(62,923)
(34,524)
(81,231)
8,692
14,797
(6,105)
177,105
218,307
(41,202)
185,797
233,104
(47,307)
258,847
317,087
(58,240)
108,406
61,518
46,888
6,252
7,572
(1,320)
559,302
619,281
(59,979)
5
5
(855,156) (574,780) (280,376)
2,454,130 2,197,110
257,020
1,598,979 1,622,335
(23,356)
373,508
371,404
2,104
2,531,789 2,613,020
(81,231)
111,805
37,232
1,804
8,692
14,797
(6,105)
177,105
218,307
(41,202)
185,797
233,104
(47,307)
258,847
317,087
(58,240)
108,406
61,518
46,888
6,252
7,572
(1,320)
559,302
619,281
(59,979)
5
5
(855,156) (574,780) (280,376)
2,454,130 2,197,110
257,020
1,598,979 1,622,335
(23,356)
373,508
371,404
2,104
2,531,789 2,613,020
(81,231)
83,463
38,181
(3,830)
28,342
(949)
5,634
450,557
150,909
21,584
(1,325)
(4,014)
15,040
160,542
(120,667)
(1,676)
55
(122,288)
(2,228)
(2,228)
(916)
(590)
36,230
152,538
(119,021)
1,578
(117,443)
(5,158)
(5,158)
(409)
(3,424)
(21,190)
8,004
(1,646)
(1,676)
(1,523)
(4,845)
2,930
2,930
(3,900)
(2,158)
(16,974)
600,018
(359,830)
(1,676)
216
(361,290)
(14,628)
(126,000)
(140,628)
(14,288)
21,738
359,919
381,657
(3,865)
26,072
308,951
335,023
(10,423)
(4,334)
50,968
46,634
(51,466)
46,634
335,023
381,657
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379,990
159,153
(8,982)
70,567
(8,244)
30,566
(5,608)
1,708
(3,135)
977
(9,636)
(7,338)
511,782
88,236
(377,842)
18,012
(1,676)
3,553
(3,337)
(374,289)
12,999
(27,440)
12,812
(26,000) (100,000)
(53,440)
(87,188)
(34,477)
49,576
285,447
335,023
(16,989)
(2,942)
49,576
46,634
Page 16
FOURTH QUARTER RESULTS 2016
GRUPO MÉXICO
MÉXICO PROYECTOS Y DESARROLLOS, S.A. DE C.V. (MPD)
CONSOLIDATED FINANCIAL STATEMENTS (US GAAP)
(Thousands of US Dollars)
STATEMENT OF EARNINGS
Net sales
Cost of sales
Gross profit
Gross margin
Administrative expenses
EBITDA
Depreciation, amortization and depletion
Operating income
Operating margin
Interest expense
Interest income
Other (income) expense, net
Earnings before Tax
Taxes
Net Earnings
Net income attributable to the non-controlling
interest
Net income attributable to MPD
Quarters
Q4-16
157,887
90,742
67,145
43%
4,265
65,799
27,292
35,588
23%
16,740
(248)
(2,918)
22,015
3,613
18,402
Q4-15
189,084
72,795
116,289
62%
5,773
122,162
26,351
84,164
45%
25,041
(1,818)
(11,646)
72,588
20,557
52,031
1
(35)
Accumulated
Variance
(31,197)
17,947
(49,144)
(1,509)
(56,363)
941
(48,577)
(8,300)
1,569
8,728
(50,573)
(16,944)
(33,629)
36
2016
608,265
315,645
292,619
48%
17,706
278,631
107,270
167,644
28%
76,124
(3,159)
(3,718)
98,397
4,108
94,288
2015
616,183
283,723
332,460
54%
21,298
308,922
92,305
218,857
36%
68,947
(3,351)
2,240
151,021
22,353
128,668
1
(43)
Variance
(7,918)
31,922
(39,840)
(3,592)
(30,291)
14,965
(51,213)
7,177
191
(5,958)
(52,624)
(18,245)
(34,380)
44
18,400
52,065
(33,665)
94,287
128,710
(34,424)
BALANCE SHEET
Cash and cash equivalents
Restricted cash
Notes and accounts receivable
Inventories
Prepaid and others current assets
Total Current Assets
Property, plant and equipment, Net
Other long term assets
Total Assets
88,258
36,428
52,800
53,324
131,291
362,101
1,736,074
394,500
2,492,675
78,996
46,968
86,520
51,376
135,090
398,949
1,811,427
386,242
2,596,618
9,262
(10,540)
(33,719)
1,948
(3,799)
(36,848)
(75,353)
8,258
(103,943)
88,258
36,428
52,800
53,324
131,291
362,101
1,736,074
394,500
2,492,675
78,996
46,968
86,520
51,376
135,090
398,949
1,811,427
386,242
2,596,618
9,262
(10,540)
(33,719)
1,948
(3,799)
(36,848)
(75,353)
8,258
(103,943)
Liabilities and Stockholders' Equity
Current portion of long-term debt
Accumulated liabilities
Current Liabilities
Long-term debt
Other non-current liabilities
Total Liabilities
Stockholders equity
Other equity accounts
Retaining earnings
Total Stockholders' equity
Non-controlling interest.
Total Liabilities and Equity
96,665
165,685
262,351
947,163
60,396
1,269,910
952,662
(80,531)
350,024
1,222,155
610
2,492,675
-
105,459
183,795
289,254
1,080,221
168,068
1,537,542
901,552
(98,741)
255,737
1,058,548
528
2,596,618
-
(8,793)
(18,110)
(26,903)
(133,058)
(107,672)
(267,632)
51,110
18,210
94,287
163,607
82
(103,943)
-
96,665
165,685
262,351
947,163
60,396
1,269,910
952,662
(80,531)
350,024
1,222,155
610
2,492,675
-
105,459
183,795
289,254
1,080,221
168,068
1,537,542
901,552
(98,741)
255,737
1,058,548
528
2,596,618
-
(8,793)
(18,110)
(26,903)
(133,058)
(107,672)
(267,632)
51,110
18,210
94,287
163,607
82
(103,943)
-
18,401
27,293
1,683
(1,624)
(32,008)
13,745
(6,582)
38,670
(5,835)
26,253
(29,675)
(29,675)
10,323
77,935
88,258
52,031
26,351
18,246
4,514
(140,678)
(39,536)
(20,472)
49,723
7,175
36,426
59,637
(35,503)
24,134
21,024
57,971
78,996
(33,630)
942
(16,563)
(6,138)
108,670
53,281
13,890
(11,053)
(13,010)
(10,173)
(59,637)
5,828
(53,809)
(10,701)
19,963
9,262
94,288
107,270
(1,790)
(11,273)
(123,281)
65,214
(14,830)
10,541
(1,961)
(6,250)
5,000
(105,811)
51,110
(49,701)
9,262
78,996
88,258
128,668
92,305
13,714
7,208
(107,468)
134,427
(89,534)
2,563
(18,225)
(105,196)
108,138
(106,326)
1,812
31,044
47,952
78,996
(34,380)
14,965
(15,504)
(18,481)
(15,814)
(69,214)
74,704
7,978
16,263
98,945
(103,138)
515
51,110
(51,513)
(21,781)
31,044
9,262
CASH FLOW
Net earnings
Depreciation, amortization and depletion
Deferred income taxes
Other Net
Changes in assets and liabilities
Cash generated by operating activities
Capital expenditures
Restricted cash
Other - Net
Cash used in investing activities
Debt incurred
Debt repaid
Other - Net
Cash used in financing activities
Net increase (decrease) cash & cash equivalents
Cash and cash equivalents - Beginning of year
Cash and cash equivalents - End of year
4Q16
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Page 17