Post on 22-Sep-2020
transcript
CORPORATE
PRESENTATION2020
Disclaimer
This presentation and discussion may contain forecasts or projections
in accordance with the vision and expectations of the management with
respect to the performance of the Company, the businesses and future
events. These forecasts and projections are subject to risks,
uncertainties and assumptions that are uncertain. Several factors can
cause actual results to differ materially from those forecasts, projections
and plans of the management, including, without limitation, business
development and marketing of new products, the demand for and
acceptance of the Company’s products, economic conditions in the
product markets and the different regions, the cost of raw materials and
energy and the fluctuation of the exchange rate.
FINANCIAL EXPECTATIONS
The financial expectations, forecasts and projections in this
presentation reflect the current beliefs of the Company and its
Administration. The Company is not required and does not acquire duty
to update this presentation or any forecast, projection or expectation as
a result of new information, events or circumstances subsequent to this
date.
This presentation is not intended for, or is intended to be distributed or
used by, any person or entity that is a citizen or resident in any locality,
state, country or other jurisdiction where said distribution or use is
contrary to law or where it is required some registration or license.
Neither the CNBV nor any other authority has approved or disapproved
the information included in this presentation, as well as its veracity and
sufficiency.
Neither this presentation nor its content constitute the basis of a
contract or a binding commitment of any kind. The recipients of this
presentation should not interpret the content thereof as legal, tax or
investment advice, so they should consult their own advisors for that
purpose. This document contains subjective estimates and analysis, as
well as assertions. Certain information contained in this derivation,
however, from sources prepared by third parties. Although it is
considered that such information is reliable for purposes of this, we do
not pronounce on, or guarantee or assume any express or implied
obligation with respect to the sufficiency, accuracy or reliability of such
information, or the assertions, estimates and projections contained
herein; On the other hand, nothing contained in this presentation shall
be considered as an expectation, promise or statement regarding past,
present or future performance. Neither Grupo Industrial Saltillo, S.A.B.
de C.V., their respective directors, officers, employees, members,
partners, shareholders, agents or advisors pronounce themselves on or
guarantee the accuracy of said information. This presentation contains,
and in the talks related to them may be mentioned, "future estimates."
Future estimates may consist of information related to results.
GIS is a global Mexican conglomerate
public since 1976
Strong Brand portfolio and leading businesses…
•Kitchen and tableware
•Enamel steel, ceramic
and aluminum
• Floor and wall tiles
• Ceramic and porcelain
tiles
• Casting and
machining
• Iron and aluminum
Significant portfolio realignment to industries and
geographies of greater potential
2008 2019
EUROPE ASIA
121MHOMES
13MVEHICLES
43%
45%
12% 7%
82%
11%
72%
20%
8% 3%
97%*Includes ByC, business divested in 2012
DRAXTON*
VITROMEX
CINSA
NORTH
AMERICA
NORTH
AMERICA
Mix of Revenue Mix of EBITDA
167MHOMES
57MVEHICLES
Mix of Revenue Mix of EBITDA
DRAXTON
VITROMEX
CINSA
This strategy has resulted on a decade of very
positive economic performance
USD EUR MXN
2008 2019*
RMB
Revenue EBITDA
9,868 6686.8%
62%
38%8%
92%
38%
24%
34%
4%
59%35%
3% 3%
Revenue EBITDA
17,868 2,37413.5%
• 2x Revenues & 4x EBITDA
• +90% Cash Flow in hard currencies
• Strong Balance Sheet
6.33.7
Net
Leverage
Interest
Coverage
1.94.9
Net
Leverage
Interest
Coverage
MXM
Millions
* 2019 L12M - September
OUR STRATEGY: Become a leading global supplier
of iron cast and machined
mobility solutions
A global manufacturing footprint
Our portfolio ready for the future… fully compatible with
Hybrid and +60% compatible with EV
BRAKES (46%)
38% 4%
CHASSIS (10%)
POWERTRAIN (44%)
• Brakes Disc• Caliper• Brackets
• Knuckles• Control Arms• Supports
• Crankshaft• Damper• Clutch Plates• Diff. Cases
Hybrid ElectricInternal Combustion
Draxton to become leading player in
brakes systems
31%
40%
6%
23%
BRAKES POWERTRAIN
2008 2019
CHASSIS
58%
31%
11%
46%
44%
10%
OUR VISION
OTHER INDUSTRIES
With presence in key global markets
84%
8%
8%
2008 2019 OUR VISION
53%
20%
18%
9%
40%
28%
20%
12%
Measured by origin of customers
EUROPEAN ASIAN OTHERNAFTA EUROPEAN ASIAN OTHERNAFTA
While partnering with leading
autoparts and mobility companies
Order book over $250 MUSD
Draxton D4C will be a key advantage in the
future
Sources of value
• Advance marketing
• Best practice transfer between different sites
• Simultaneous co design in different geographies
• Faster roll out of new technologies
• Environment design for innovation
• +150 engineers
• Two centers of excellence
Brake Competence Center (BCC)
Machining Technology Center (MTU)
• Four Engineering and R&D Locations
Spain (two)
Mexico
China
USMCA Positive for Draxton
75% 40-45% 75%components
must be manufacturedin the region
minimum salary US$16
an hour
Iron & Aluminum
purchases of the region
NAFTA
• Relocation of operations from Europe and
Asia to meet regional content
• OEM'S investment requirement for EV
developments
As a result
OUR STRATEGY: Become the best value and service alternative in
ceramic and porcelain tile in NAFTA
Strong fundamentals…
Significant footprint
15th largest manufacturer
in the world
Strong Brand
recognition
in Mexico
Manufacturing and commercial
expertise
• 100% digitalized units
54M m2
Total capacity
We are suppliers to leading companies
in Mexico and the US
OUR STRATEGY: Maintain enamel steel leadership in Mexico and
accelerate expansion in US, innovate in ceramic and
aluminum across all the portfolio
53%
23%
24%
MATERIAL
CERAMIC ALUMINUMENAMEL STEEL
50%
26%
14%
10%
MODERN
TRADE
IRON
MONGERY
WHOLESALES
& DISTRIBUTORS
US
MARKET
SALES CHANNELS
Significant presence: Key tableware,
segments & channels
CINSA has one of the widest distribution
footprint in the industry
cuesta menos
Key Takeaways
Important margin expansion driven by Vitromex
turnaround and recovering US market
Strong cash flow and financial position to take
advantage of inorganic opportunities
Significant growth potential in Draxton: USMCA
(Brakes), China, commercial vehicles (Europe)
and EV components
CORPORATE
PRESENTATION2020