CORPORATE · market 16 • 2014e Revenues of U.S. $4,100 million • More than 1.4 million tons/yr,...
Transcript of CORPORATE · market 16 • 2014e Revenues of U.S. $4,100 million • More than 1.4 million tons/yr,...
This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain.They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and futurebusiness decisions, all of which are difficult or impossible to predict accurately. Accordingly, results are likely to vary from those setforth in this presentation. Copyright © 2014 ALFA, S.A.B. de C.V. All rights reserved. Reproduction and distribution is forbidden withoutthe prior written consent of ALFA, S.A.B. de C.V.
CORPORATE
PRESENTATION
Update: October 24, 2014
Established in
1974— Roots go back to XIX century
2
2014e Results*
Revenues (U.S. $ Billions) $15.8
EBITDA (U.S. $ Billions) $2.0
Capex (U.S. $ Millions) $1,055**
* Guidance as of July 15th, 2014** Excludes acquisitions
ALFA participates
in key areas of the economy
3
500
700560
165110 26%
36%
29%
8%5%
6.5
4.5
4.1
0.40.2
41%
29%
26%
3% 1%
REVENUES 2014e(U.S. $ 15.8 BillIon)
EBITDA 2014e(U.S. $ 2.0 Billion)
NEWPEKHydrocarbons
SIGMARefrigerated Foods
NEMAK Aluminum Auto Parts
ALESTRAIT + Telecom
ALPEK Petrochemicals
BREAKDOWN BY BUSINESS GROUP
Ownership
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1: Alpek is a public company since April 2012. Market float is 18%2: Ford Motor Co. owns 7% of Nemak
82%1 93%2 100% 100% 100%
Globalfootprint
55
Production facilities in 23 countries
~65% of sales outside Mexico
More than 68,000 employees
Focusedon long-term value creation
6
0.60.8 0.8
1.0 1.0 1.11.3
1.71.9 1.9 2.0
04 05 06 07 08 09 10 11 12 13 14e
5.16.2
6.9
9.610.6
8.5
10.8
14.715.215.9
15.8
04 05 06 07 08 09 10 11 12 13 14e
EBITDA(U.S. $ Billions)
Revenues(U.S. $ Billions)
Note: Guidance as of July 15th, 2014
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One of the world’s largest integrated
polyester groups
8
• 2014e Revenues of
U.S. $6,500 million
• Production facilities in key geographic areas:
– North America: the biggest market for beverages
– Availability of low-cost raw materials
– Logistics
Fayetteville, N.C.Cooper River, S.C.Columbia, S.C. Pearl River, MS
Monterrey, N.L.Altamira, Tamps.Salamanca, Gto.Ocotlan, Jalisco
Tlalnepantla, Edo. MexicoLerma, Edo. MexicoCosoleacaque, Ver.
Zarate, Argentina
PP
EPS
PURs
Business Segments
Polyester Chain
Plastics and Chemicals
PTA
PET
PolyesterFibers
CPL
Fertilizersand otherschemicals
PRODUCTS SAMPLE OF END-USES
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2014e Revenues
U.S. $4,810 Million
(74%)
2014e EBITDA
U.S. $335 Million
(67%)
2014e Revenues
U.S. $1,690 Million
(26%)
2014e EBITDA
U.S. $165 Million
(33%)
Enhancing
competitivenessINVESTMENT PROJECTS
U.S. $100-300
million
U.S. $50-100
million
Less than U.S. $50 million
FEASIBILITY ANALYSIS
INVESTMENTCOMPLETION
Integrated MEG plant (US$1 billion)
PTA/PET JV Russia
(TBD)
Cogen Altamira(US$250 million)
PTA/PET site in Texas
(US$350 million)
Propylene Sphere (US$20 million)
CPLTechnology
Upgrade
Cogen Coso
(US$130 million)
1
2 3 4
6
7
5
Amount of investment within parenthesis; estimated annual savings in blue area
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Strategic Guidelines
• Capture natural gas, ethane and propane advantage in North America
• Maximize operating efficiency
• Pursue Integrex licensing / JV
1111
The largest producer
of aluminum cylinder heads and engine blocks in the world
• 2014e Revenues of U.S. $4,500 million
• One out of every four new
vehicles sold worldwide has a Nemak component
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A portfolio of 50customers, supplying
more than 650different platforms
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Aluminum structural componentspenetration
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NA and EU LV Aluminum Content(Pounds Per Vehicle)
52 53 54 55 55 57
51 55 60 65 71 79
45 47 49 51 53 57 55 58 61 64 67 71 31 33 34
35 37 39
43 46
50 54
58 64
33 43
57
85
2012
324
2015e
350
301
2009
24
2018e
426
2021e
475
2025e
380StructuralComponents
Others
Heat Transfers
Wheels & Brakes
Transmissions
Engine Blocks
Cylinder Heads
Source: Ducker, Nemak research
109
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A leading playerin the refrigerated food market
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• 2014e Revenues of U.S.
$4,100 million
• More than 1.4 million tons/yr, or 4,000+ per
day
• Acquired 62% of Campofrio
Food Group (Europe)
Production facilities in
13 countries
Note: Does not include the contribution by Campofrio
Strongbrand portfolio
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2013 Processed Meats Brand Awareness (Mexico)
Sigma
Stro
ng
Bra
nd
Aw
aren
ess
Brand A Brand B Brand C
Top of MindShare of Mind
45%
17%3% 7% 5% 1%0%
25%
50%
75%
100%
80%
45%
8%
29%33%
17%
FUDSan
RafaelChimex
Premium
High
Middle
Economy
Low-end
YogurtCheeseProcessed Meats
Source: Sigma
One of the most efficient distribution
networks in Mexico
• 136 distribution
centers; 3,700 delivery routes
• +4,000 refrigerated
vehicles
• Reaching more than
440,000 POS
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CampofrioFood Group
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• 2013 Revenues of U.S.
$2,613 million;
EBITDA of U.S. $199 million
• 25 plants in 9 countries
• 7,300 employees
Sales breakdown
14%
Dry Sausage28%
Dry Ham19%
Cooked Ham
Fresh Meat9%
Poultry9%
Hot Dogs8%
Cooked Products8%
Pizzas &Ready Meals
3%
Others2%
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Strategic
evolution
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ALESTRATELECOM• Mass Market• LD Services
• Enterprise market• Value added services• Internet bubble
• IP as standard• Telecom / Informatics• WAN / LAN• Data Centers• Managed Services• Security Operation
Center
• Vertical Markets• Cloud services• Management
applications (ERP,CRM)• Fixed/Mobile
applications
ALESTRAIP
ALESTRACONVERGENCE
ALESTRACLOUD&MOBILE
• Managed applications
• Governance and compliance in IT
• Business Process Outsourcing
• Integral operation of critical mission
ALESTRAIT
Leader in the value-added IT + Telecom
services for enterprises in Mexico
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Enterprise LDMN & IT Enterprise
Data, internet and local
• 2014e Revenues of
U.S. $430 million
• Value Added Services (VAS)for the enterprise market
• IT Managed Services Security, Data Centers, Cloud Services, VPNs,Internet
Sales breakdown
By type of service
40 %
Consumer & Intl5%
14%41%
Residential International
Enterprise
By Market Segment
94%
2%4%
Infrastructure provides
access to +90% of
Mexican market
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• 20,520 kms. of long-haul fiber optics, plus 3,500 kms. of metro rings in 16 cities
• 50 cities with Data & IT services
• Acquisition of G-TEL to reinforce coverage NW and SE regions.
• New Data Center in Queretaro
Alestra´s Network
Corporate headquarters
International Border CrossingData Centers
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ALFA’s current Energyinitiatives
JV with Pioneer Natural Resources and Reliance
Industries
2014e Revenues
U.S. $160 Million
Production (net)
+7,300 BOED
2P Reserves (Jan ’14)
+61.3 MMBOE
JV with Petrofac
Partner with Monclova Pirineos Gas
E&P in the U.S.(TX, OK, CO & KS)
E&P in Mexico
O&G Services in Mexico
Eagle Ford Shale
Mexico’s Energy Reform: a New
Landscape
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• Profit sharing, production sharing and license agreements
• Booking of reserves
• Pemex: State Productive Entity
• Major infrastructure needs & opportunities
• Open competition in basic petrochemicalsand distribution of oil products
• Retail distribution open by 2016
• Generation and commercialization of electricity
• Participation on transmission and distribution through CFE
• CFE: State Productive Entity
E&P Midstream / Downstream Power
1.
2.
3.
ALFA: to maximize opportunities along all value chains
E&P (Upstream)
Only 25% of the estimated resources in Mexico have been exploited
Midstream / Downstream
Investment in infrastructure will be needed to develop E&P in certain areas
Power
Open competition
Rounds 0 and 1
2P Reserves Prospective
MMMboe
24.8MMMboe
112.257% unconv.
Assigned to Pemex in Round 0 Unrequested
87% Southeast
83%
17%
21%
79%
Burgos ySabinas
Unconventional
Deep waterCinturón Plegado
PerdidoGolden Lane-
Ébano-Chicontepec
Deep WaterHan y Holok
Extra Heavy Oil
Shallow water
Round 0 PemexMigrations Blocks CIEPs y COPFs Round 1 farm-outsRound 1 explorationRound 1 exploitation
ALFA:growing in 2014
2929
Alfa
Alpek
Nemak
Sigma
Alestra
Newpek
Revenues
2013 2014e % Ch
15,870 15,793 0
7,028 6,500 -8
4,391 4,500 2
3,820 4,100 7
395 430 9
133 160 20
EBITDA
2013 2014e % Ch
1,914 1,950 2
573 500 -13
610 700 15
524 5601 7
170 165 -3
91 110 21
Capex*
2013 2014e % Ch
872 1,055 21
179 300 68
339 375 11
118 145 23
120 100 -17
113 130 15
* Excluding acquisitions
Note: Guidance as of July 15th, 2014. 1. Does not include the contribution of Campofrio in 2H14: approx. U.S. $100 million based on LTM EBITDA as of March, 2014.
Guidance 2014 (U.S. $ Millions)