investor relations 9m 2020...carlos hank gonzález eduardo osuna osuna ernesto ortega arellano...

Investor Relations9M 2020

COVID-19 Response

2

• Full support to our

employees: 21% of

employees received

salary advances during

COVID with flexible

payment options.

• Commitment to our

community and

vulnerable sectors

through donations to

institutions that are

currently having no

income.

• Operational resiliency.

Keeping BMV’s full range

of trading, market

development, and client

support services.

• Keep executing our

BCP protocol for as

long as we need to, in

order to guarantee the

safety of all BMV’s

employees; over 95% of

us are working remotely.

• Operate from a

position of strength

from capital, liquidity

and balance sheet

perspective.

• Focus on risk

management, cash

flow generation and

cost control.

• Strategic

alliances and

technology

platforms that

allow us to

continue

strengthening the

financial

awareness in

Mexico.

We continue building a stronger Mexican exchange through:

3

04 27 22 4004 21 26 39

• We make Mexican stock and derivatives

markets work

• Strong Foundation and Execution

• Creating Shared Value

• Top Partners

4

6

61% 21% >75% 3.5%-5%

8

We create sustainable value

for Mexico through our

services, promoting the best

international practices in

governance, being leaders in

promoting sustainable finance

and contributing to the

strengthening of financial

culture.

9

Corporate Responsibility

Our journey towards Sustainability

Code of

ethics and

conduct

S&P/BMV Total

Mexico ESG

Index

Incorporation

into the

Sustainable

Index

Green, Social and

Sustainable Bonds

Corporate

Volunteer

Program

2011 2013 2014 2016 2017 2018 2019 2020

New institutional

philosophy

BMV Foundation

Anti-corruption

and money

laundering

policy

Information Security

Policy

Business

continuity Policy

BMV Podcast

10

Governance

• BMV is guided by a strong Corporate Governance, ethics and best practices.

– Our board is diverse in gender, structure, experience, ages and ideology

– Measures to prevent conflicts of interest with suppliers and employees

• Policies and guidelines

– Electronic Document and Information Processing Policy

– Regulatory and Corporate Compliance Policy

– Treatment and Protection of Personal Data

– Anti-corruption and money laundering policy

– Policy to establish the mechanisms of good corporate governance in financial infrastructures

– Guide for the prevention and identification of operations with illicit resources

– Securities Operations Manual

• Development of new sustainable products/services

– “S&P/BMV Total Mexico ESG Index”

– Green, social and sustainable bonds

• A strong communication campaign of business ethics and institutional values among employees

– Innovation, Service, Excellence, Teamwork, Transparency, Integrity

Board of Directors

1

68

Trust

holding

control

Chairman

Independent

11

Board of Directors

Marcos Martínez Gavica

Alberto Torrado Martínez

Alfonso González Migoya

Blanca A. Treviño de Vega

Clemente Ismael Reyes Retana Valdés

Eduardo Valdés Acra

Fernando Ruíz Sahagún

Francisco Gil Díaz

Tania Ortiz Mena López Negrete

Carlos Hank González

Eduardo Osuna Osuna

Ernesto Ortega Arellano

Héctor Blas Grisi Checa

Juan Bordes Aznar

Tomás Christian Ehrenberg Aldford

As of September 2020

Senior Management

Ownership

As of September 2020

23%

77%

Free Float

Trust holding

control

13

Shareholder Structure

• Capital Group Companies Inc 9.2%

• Invesco Ltd 4.3%

• B3 SA - BRASIL BOLSA

BALCAO4.1%

• J.P. Morgan 3.5%

• Franklin Resources 3.4%

• Vanguard Group Inc 2.6%

• Seafarer Capital 2.4%

• Fil Ltd 2.1%

• Blackrock 1.9%

• Goldman Sachs 1.6%

35% is held by Top 10 shareholders:

• BBVA

• Banorte

• Ve por Más

• Santander

• Inbursa

• J.P. Morgan

• Valores Mexicanos

• Value

• Vector

We develop and empower talent

Our collaborators are the most important asset.

We constantly seek to offer the best working conditions, a career plan and trainings. BMV’s workplace

culture is one where every employee feels empowered to bring their authentic self to work every day.

490 Employees

• Average hours of training and

development in 2020: 60

• Learning and development

platform available 24/7

44% 56%

Equal opportunities.

• We are a company with diversity

in gender, structure, experience,

ages and ideology.

• Anyone who wants to develop a

career without restrictions or

limitations can grow at BMV.

• In 2019, a total of 45 vacancies

were filled by internal employees

(26W-19 M).

Training

• The working satisfaction has

increased 4 years in a row according to

our last organizational climate survey.

In 2020 was registered at 86%

• Innovation and teamwork culture:

Both are part of our core values and

many of our improvements and

projects successfully were born thanks

to collaboration initiatives.

• Total employee turnover rate in 2019:

11 (50% less than 2018)

Culture

11% 26% 48% 15%

Baby Boomer X Millennial Z

15

Social Development

• In 2020, BMV strengthen the Stock Market and Financial awareness

in Mexico through:

– Exchange School – Online education ( In 2020: 17,500 people | 90

courses).

– Online lectures taught by experts in their fields. All the resources are

available on our You Tube channel.

– MUBO is the only interactive stock market museum in Mexico, which has

had over 100,000 visitors since April 2019 and 7,000 virtual visitors

during the pandemia.

– Means of communication: Blog, Podcast, website and social media.

BMV Group Foundation

- BMV supports art & culture through the promotion of

the creative work of Mexican emerging artists.

Social Programs:

- Volunteer program managed by employees.

- Free lectures in public and private schools.

16

Creating shared value

• We have partnered with the following institutions

• BMV is part of the Sustainable Stock Exchanges Initiative and has an active role in environmental

projects in order to grow Green Finance.

• MEXICO2, BMV’s Carbon Exchange, which provides an electronic forum for certificates conferring

the right to emit one tonne of carbon dioxide, thereby attaching a cost to pollution.

• Last year we launched BMV’s Environmental Strategy which points to 5 objectives

Waste

managementBeing an

example in

the market

Emission

neutralizationSaving

water

Energy

efficiency

In 2019, BMV started measuring its carbon footprint, making it one of the only exchanges in Latin

America to take action.

2019 CO2 / ton

Scope 1 – Direct emissions 166

Scope 2 – Indirect emissions 2,360

Scope 1 + 2 2,526

Co2/Income 0.71

Target 2022: 10% reduction CO2 / Income

18

Sustainable business

• Since 2016, we have issued 33,160 million pesos corresponding to 16 sustainable bonds (5 green, 10 sustainable and 1 social)

2

3

5

3

2

1

2016

2017

2018

2019

Green Bond Sustainable Bond Social Bond

$3,000

$18,000

$11,460

$700

(Million pesos)

C

• Equity

• Debt

• Green, Social and Sustainability Bonds

• ETFs (TRACs)

• REITs (FIBRAs)

• MLP (Fibra E)

• SPAC

• Development Certificates (CKDs and CERPs)

19

C

• Education

• Financial Risk Management

• Governance, Risk & Compliance

• Specialist software

• IT structure

• MexiCO2

• Balance between growth potential and cash generating businesses

• Capex (1): 60 - 90

• Depreciation (2): 180 – 230*

(1) Million

(2) Including 100 million pesos in leases (IFRS 16)

21

• Green bonds

• Social bonds

• Sustainable bonds

• SPACs

• MLPs

• CO2 certificates

• Block trading books

• Incorporation of limit market

stance

• Short sale optimization

• Improvement of crossing

operations

• Securities lending platform

• Direct Custody

• Clearing and settlement for

new securities

• Automation of Corporate

actions

• LatAm Exchanges Data

• Point of presence in NYC

• Consolidated feed

• Alliance with S&P to build

and distribute indices

globally

• Financial risk management

22

It will enable access to the local market infrastructure providing various services to foreign

financial institutions such as broker-dealers, banks, fund managers, insurance companies

and global custodians.

ACCOUNT MANAGER

• Point of contact between our

clients and Indeval

• Customer service platform

(faster responses to queries)

• English speaking account

managers

CORPORATE ACTIONS

• Proxy Voting

• Corporate Events

• Communication via

SWIFT

• Dividend and interest

processing

• Enhanced cut-off

times for instructions

MARKET

INFORMATION

• Extensive Market

reports

• Income

• Safekeeping

TAX

SERVICES

• Tax Reclaim

• Tax Withholding

• Documentation

• Tax reporting

23

Indeval: Direct Custody

CCV is implementing risk models for all on-the-run M Bonds in its technological platform.

BENEFITS

• Permanent risk monitoring

• Risk covering by guarantee

funds

• Increased trust in Financial

System

• Mitigation of counterparty risks

• Electronic trading integration for

derivatives and cash market

A UNIQUE BUSINESS

• Independent risk calculation

• Highly experienced staff

• PFMI compliance

• Robust legal framework

• Best practices on clearing and

settlement

INNOVATION

• Cutting-edge risk

engine

• Robust technological

platform

24

Clearing Services for Fixed-rate Federal Government Development Bonds

Mexico CityInfrastructure and production, as well first-level

support

MiamiProject management, relationships with

contributors, as well as design, marketing, and

sale of final products

Relevant Information

• Structure – BMV owns 51% of the Mexican company and 49% of the American company.

• Stages – the first stage of development is to establish an information distribution platform for the

delivery of end-of-day data from Latin American markets. The second stage will incorporate real-

time products.

• Investment - up to 10 million dollars with an initial outlay of three million dollars for the

development of the first stage.

LED

25

Information Services: LatAm Exchanges Data (LED)

• Fully integrated Exchange

• 125 years of experience

• Diversified business model with 9 revenue segments

• Highest segment contributes 31% of total revenues

• 36% of total revenues are Market driven

26

IndevalCentral Securities Depository

8%

6%2%

3%

6%

11%

31%

15%

1%

13%

4%

BMVEquity Trading

SIF Icap MexicoOTC Trading

SIF Icap ChileOTC Trading

AsignaDerivatives Clearing

MexDerDerivatives Trading

CCV Equity Clearing

Maintenance fees

Listing fees

Information Services

2,959Million pesos

9M20 Revenues

Other

Diversified Revenues by Business Activity

9M20 Financial Results

Fee Related Revenue 64% ----------------------Trading Revenue 36%

27

11

19

33

63

12

24

33

53

9

16

27

42

912

17

0

Q1 Q2 Q3 Q42017 2018 2019 2020

138 134 129 127

152 147138 136136 133

128 125134

128 127

0Q1 Q2 Q3 Q4

2017 2018 2019 2020

Listing Revenue(million pesos)

Key Factors

As of June 30th 2020

Maintenance Revenue(million pesos)

1. Listing and Maintenance

As of June 30th 202028

• All instruments have a one time payment

listing fee

• Maintenance fees are paid annually after the

first year of been listed

• Fees are subject to the CNBV approval and

are adjusted annually by inflation.

• 2020: government and other debt duration

12.4 and 6.4 years, respectively.

26%

6%

8%

18%

14% 52%

76%

Maintenance

9M20 Listings

Equity Alternative Debt (Gov) Debt (Corp)

Revenue Mix

IPOs & Follow-Ons (million pesos)

As of September 30th 2020

Local Market

638 739 8561,124 1,245

577

723

923

1,097

1,194

2016 2017 2018 2019 9M20

Equities ETFs

2016 2017 2018 2019 2020

2

9

12

7

2

Global Distribution

• North America 59%

• Europe 35%

• Asia 4%

• South America 1%

• Africa and Oceania 1% As of September 30th 2020

2020 Equity Listings

Global Market

29

$55,136 $95,663 $68,358 $5,931 $25,827

1,215

1,462

1,779

2,221 2,439

• Follow-Ons of FIDEAL for 25,827 million on april 21

• Follow-Ons of FSITES for 12,037 million on july 23

36% 42%39%

52%

64% 58%61%

48%

20

17

20

18

20

19

9M

20

Global Local

5145 45 47

51

5954

71

53 54 5650

53

61 59

0

Q1 Q2 Q3 Q4

2017 2018 2019 2020

7567

71 747785

71

84

66 6776

63

79 7869

0

Q1 Q2 Q3 Q42017 2018 2019 2020

• Local and global (SIC) markets.

• Trading revenues are based on the total

value traded during the month.

• Participants must deposit margins to

guarantee their trading activities.

• Fees are subject to Financial Regulator’s

approval and are adjusted by inflation.


Market Mix

2. Equity Trading and Clearing



30

Cash Equity Trading Revenue (Million pesos)

Cash Equity Clearing Revenue(Million pesos)

Key Factors

13,524

16,728

23,721

15,526 17,243 16,650

13,998 13,849 14,944

14,205 13,539 14,392

13,192 12,608 12,576 12,891

14,791 13,656 12,403 12,172 12,526

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2020 2019

9,873 10,43712,594

14,44312,362 12,934

14,595 14,483 15,726

13,24516,200

34,094 45,45779,318

138,801 155,682197,308

292,247 277,648

379,690 353,586

390,338

0

100,000

200,000

300,000

400,000

500,000

-1,500500

2,5004,500

6,5008,500

10,50012,50014,500

16,500

18,500

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 *9M20

Value Traded Transactions

2019 vs 2020 Daily Average Trading Value per Month(million pesos)

2010 – 2020 Daily Average Trading Value & Transactions per Year(million pesos)

*As of September 30th 2020, Operational Highlights

Operational Highlights

31 As of September 30th 2020, Operational Highlightss

65

57

5154

5052

50 50

4245

55

44

49 50 51

Q1 Q2 Q3 Q42017 2018 2019 2020

29,064

40,03336,637

32,333

42,494

2016 2017 2018 2019 *9M20

Margin Deposits(average in million pesos)

49,71742,261 31,073 25,323 26,415

26,09526,574

22,459 28,174 29,489

2016 2017 2018 2019 9M20

Futures

Swaps

Total Derivatives Contracts(daily average traded)

• MexDer is the only listed derivatives

market in Mexico

• Futures, options and swaps platform

• Liquidity, transparency, clearinghouse

support and self-regulation

• Average margin deposits $42.4 billion

pesos, up 28% compared to 9M19.


As of September 30th 2020As of September 30th 2020

3. Derivatives Trading and Clearing

32

Derivate Revenue

(Mexder and Asigna in million pesos)Key Factors

IPC Futures

37,47435,292 35,705

32,481

20,088

35,60939,060 42,113

38,958

31,785

2016 2017 2018 2019 2020

Notional Open InterestUSD Futures

136,671 137,380 102,491 82,960 107,184

835,770 910,853

592,701

445,531496,958

2016 2017 2018 2019 2020

Notional Open Interest

DC24 Futures

14,0155,364 3,950 2,760 519

76,330

35,031 33,17317,845

7,867

2016 2017 2018 2019 2020

Notional Open Interest

Swaps

Average as of September 30th 2020

Average as of September 30th 2020 Average as of September 30th 2020

Operational Highlights

33

September: 12,327,574 open contracts

Average as of September 30th 2020

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Jan

-16

Ma

y…

Se

p-…

Jan

-17

Ma

y…

Se

p-…

Jan

-18

Ma

y…

Se

p-…

Jan

-19

Ma

y…

Se

p-…

Jan

-20

Ma

y…

Se

p-…

132 130143

154144

170

135 135127

147156 155

193

171

144

Q1 Q2 Q3 Q42017 2018 2019 2020

• Voice and electronic interdealer broker

• Joint Venture with ICAP Plc

• SIF ICAP has presence in Mexico, Peru and

Chile

• Only inter dealer broker in Mexico with an

area dedicated exclusively to corporate

bonds

México38%

Chile62%

Revenue Mix Products

• Government bonds

• Banking and corporate bonds

• Swaps (IRS and currency)

• Forwards (currency)

• Warrants



4. OTC Trading

34

OTC Revenue

(Million pesos)Key Factors

146 145

195209209

232220

240238253 262 260

301317

304

Q1 Q2 Q3 Q42017 2018 2019 2020

• Indeval is the only CSD in Mexico, safekeeping

+1.1 trillion USD and servicing local equities &

ETFs, Mexican government & corporate bonds,

pension & mutual fund shares, as well as

foreign securities listed in the Global Market SIC

• Indeval is the 9th largest CSD in the world in

terms of daily average value according to BIS*

statistics, and processing Transactions in

pesos for +270 billion USD 9M20

• In July 2017, we implemented a new model for

the Global Market that reduced +50% the costs

for intermediaries and as a result foreign assets

doubled by June 2020. Global Market Services

include cross-border settlement, corporate

actions, tax services (US Tax Forms – W8,W9).

• Custody fees are regulated by the National

Banking and Securities Commission

• Indeval has several projects under development

to enhance service levels, reduce costs for

market participants and continue diversifying

revenue sources.


Custody36%

Global Market Services

39%

Securities Lending

2%

Transactions22%

Other1%

Revenue Distribution


5. Central Securities Depository

35

Indeval Revenue

(Million pesos)Key Factors

* Bank for International

Settlements*Transactions / Securities & Cash Management

3.1 3.4 3.5 3.9

0.60.7 0.7

0.81.11.2 1.2

1.34.85.3 5.5

6.0

2017 2018 2019 9M20

Government Debt Bank Debt Equities Cash .

7.6 7.9 8.3 8.9

9.0 8.9 7.6 7.4

5.1 5.7 6.2 6.82.6 2.9 3.3 3.224.4 25.3 25.5 26.3

2017 2018 2019 9M20Government Debt EquitiesPension / Mutual Funds Corporate Debt


Custody and Transactions Highlights

36

Average daily settlement amount

(average in trillion pesos)

Total Assets Under Custody

(average in trillion pesos)

Gov. Debt64%

Bank Debt13%

Equities1%

Cash22%

Amount Settled Distribution: 9M20


1012

1111

12 12

18

15 15

1716

1719

78

6 78 8

18

9

11

10

10

8 8

0

2

4

6

8

10

12

14

16

18

20

0

2

4

6

8

10

12

14

16

18

20

Bill

ion

US

D

Thousands

Number of Operations Settlement Amount

Assets Settlement – Global Market

Equities20%

ETFs80%


Global Market Services Highlights

37

27.4

40.142.0

46.3

2017 2018 2019 9M20

Assets Under Custody - Global Market(average in billion USD)

46 BUSD

Asset Mix: 9M20

50.1

38.3

49.5

36

38

40

42

44

46

48

50

52

54

56

-1,000

-500

0

500

1,000

1,500

Au

g-1

9

Au

g-1

9

Se

p-1

9

Oct-

19

Oct-

19

Nov-1

9

Dec-1

9

Dec-1

9

Ja

n-2

0

Feb

-20

Feb

-20

Mar-

20

Ap

r-2

0

Ap

r-2

0

May-2

0

Ju

n-2

0

Ju

l-20

Ju

l-20

Au

g-2

0

Se

p-2

0

Se

p-2

0

AuC

Bill

ones

US

D)

Nete

o(M

illones U

SD

)

AuC vs Neteo ConversiónSIC

Netting SIC AuC SIC (USD)

124

103 110 106114 114

136

115

147137 140 135

145 148157

0

Q1 Q2 Q3 Q4

2017 2018 2019 2020

• Valmer is an authorized price vendor and

risk management software provider

• Market Data provides screens, information

stations and data feeds

• Strategic alliance with S&P for production

and distribution of fixed income and equity

indices

Revenue Mix

EquityFixed

Income

Indices 16 105

ETFs referenced

to an index17 5


As of September 30th 2020, Financial Results

S&P/BMV Indices


6. Information Services

38

Information and Services Revenue (Million pesos)

Valmer28%

Market Data72%

Key Factors

• EBITDA Margin: 61%

• EPS: 1.39 9M20

• ROE: 21%

• 9M20 Dividend Yield: 3.6%

• DPS: 1.81

• Payout Ratio: 80%

39

Revenue

Up 11%

$2,959 MM

(9M 2019: $2,663 MM)

Net Income

Up 14%

$1,168 MM

(9M 2019: $1,028 MM)

Expenses controlled while

investing for growth

Up 4%

$1,315 MM

(9M 2019: $1,260 MM)

EBITDA

Up 16%

$1,795 MM

(9M 2019: $1,543 MM)

EBITDA Margin

Up 271 bps

61%

(9M 2019: 58%)

Dividends per Share

80% Payout

$1.81

(2018: $1.78)

9M20 Key Financial Highlights

Strong financial performance from market related businesses and the Central Securities Depository, as well as tight control of underlying costs

40

BMV´s financial results*Excluding impairment of goodwill in 2008/14/15/19

EBITDA Margin

• EBITDA Margin: 58% – 61% • Net Income: $1.4 B - $1.6 B

Guidance 2020

Sustainable Growth

41

95% 77% 77% 77% 80%

39%

44% 45% 46% 47%43%

50%53% 55% 55%

58%61%

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9

9M

20

681 968 1,160 1,360 1,338 1,168

646

741

895

1,052 1,071

2015 2016 2017 2018 2019 9M20

Net Income, Dividend & Payout(million pesos)

Net Income Dividend Payment

Thousand pesos3Q20, Financial Results

3Q20 3Q19 Var. Var. %

Revenues 961,663 933,745 27,919 3.0%

Cash Equities 126,985 131,991 -5,006 -3.8%Cash equities trading- BMV 69,154 75,528 -6,375 -8.4%

Cash equities clearing- CCV 57,831 56,462 1,369 2.4%Derivatives 51,078 53,664 -2,586 -4.8%

MexDer 19,664 25,229 -5,566 -22.1%

Derivatives trading 16,635 22,504 -5,869 -26.1%

Data sales-MexDer 3,029 2,726 303 11.1%Derivatives Clearing- Asigna 31,414 28,434 2,980 10.5%

Derivatives Clearing 31,039 28,386 2,652 9.3%Data Sales- Asigna 376 48 328 688.0%

OTC (SIF ICAP) 143,627 156,254 -12,627 -8.1%

OTC trading 142,075 154,909 -12,833 -8.3%

SIF ICAP México 54,283 62,491 -8,208 -13.1%

SIF ICAP Chile 87,792 92,417 -4,625 -5.0%

SIF ICAP data sales 1,552 1,346 206 15.3%

Capital Formation 144,328 154,248 -9,920 -6.4%Listing fees- BMV 16,910 26,746 -9,836 -36.8%

Maintenance Fee- BMV 127,417 127,502 -85 -0.1%Central Securities Depository (CSD) 303,927 261,501 42,426 16.2%

Information Services 156,679 140,354 16,324 11.6%

Price Vendor- Valmer 44,138 53,846 -9,708 -18.0%

Data Sales 112,540 86,508 26,032 30.1%

Others 35,041 35,733 -692 -1.9%Colocation 5,029 6,247 -1,218 -19.5%

Others 30,012 29,486 526 1.8%

Revenues Overview – quarterly YoY

42

8%6%

2%3%

6%

11%

31%

15%

1%

13%4%

Equity Trading

SIF IcapMex

SIF Icap Chile

Asigna

MexDer

CCV

OtherMaintenance fees

Listing fees

Information and

Services 9M20

Indeval

Indeval

8%7%

7%

6%

11%

19%

11%

7%

8%

16%2%

Equity Trading

SIF IcapMéxico

Asigna

MexDer

CCV

Other

Listing fees

Market Data

Valmer

2008

Indeval

Maintenance fees

Evolution of Revenue Mix

43

Thousand pesos

Good control of underlying expenses

• Personnel - Expenses related to employees (salary, benefits and other expenses). SIF

ICAP has a variable compensation based on performance.

• Technology - Expenses related to the technological platform that the company uses to

carry out its operations and the purchase of data.

• Sub-Custody - Fees generated by the securities service operated outside Mexico.

• CNBV – Financial regulator fees.

9M20 9M19 Var. Var.

Expenses 1,315,245 1,260,312 54,933 4.4%

Personnel 679,767 658,149 21,618 3.3%

Technology 195,849 183,882 11,967 6.5%

Depreciation 151,141 140,687 10,454 7.4%

Rent and Maintenance 48,760 49,311 -550 -1.1%

Consulting Fees 70,328 69,759 569 0.8%

Sub-Custody 73,457 62,458 10,999 17.6%

CNBV Fees 22,410 21,763 646 3.0%

Others 73,532 74,303 -771 -1.0%

Expenses Overview - quarterly YoY

44

• Revenues in dollars: 25%

• Expenses in dollars: 23%

Flat USD position

Operating Income Net IncomeEBITDA

Growth Rate: 9M20 vs 9M19

1,439

1,642

1,865 1,914

1,644 1,512

1,734

1,948 2,015

1,795

968

1,161

1,376 1,338

1,668

2016 2017 2018 2019 9M20Operating Income EBITDA Net Income

9M20, Financial Results

17%

20%

21%

20%

21%

2016

2017

2018

2019

9M20

Historic ROE Operating Income, EBITDA & Net Income(Million pesos)

16%17% 14%

Income Growth

45

Figures in million pesos9M20, Financial Results

Summarized Cash Flow 9M20

Strong cash generation

46

414

1,488

1,488

1,548

1,583

2,129

2,222

0

1073

0

61

35

546

93

0

Free Cash Flow

Dividends to controllingshareholders

Discretionary free cashflow

Dividend paid to non-controlling

Investment activities

Taxes paid

Hardware leases

Cash Generates andChanges in WC

• Cash at the beginning of the period

$3,100MM

• Cash at the end of period $3,514MM due to

maintenance revenue which is collected in

advance.

• $35MM capex – mainly building

improvements and new projects.

• $151MM depreciation and amortization.

• Cash generation-discretionary free cash

flow remains strong at $2.51 per share.

• Free Cash Flow Yield in 2019 was 6.6%

• Cash Flow Return on Investment in 2019

was 28.6%

• Total Assets $8.3 B

• $3.5 B cash and

investments

• Total Liabilities $1.0 B

• Shareholders’ Equity

$7.2 B

• Book Value $4.1 B

3Q20, Financial Results

Sep-20 Dec-19

Total Assets 8,340 7,868 472 6%

Cash & Investment 3,514 3,100 414.5 13%

Accounts Receivable 370 404 -33.3 -8%

Recoverable Taxes 37 14 23.0 168%

Total Current Assets 3,921 3,517 404.1 11%

Amortization expenses 83 55 28.4 52%

Other Non-Current Financial Assets 193 166 26.3 16%

Investments in Associated Companies 30 39 -9.2 -23%

Fixed Assets 471 479 -8.6 -2%

Goodwill 3,084 3,084 0.0 0%

Other Non-Current Assets 558 527 30.9 6%

Total Non-Current Assets 4,419 4,351 67.8 2%

Total Liabilities 1,085 808 277 34%

Suppliers and Other Accounts to Pay 529 444 84.7 19%

Deferred Income 171 11 159.7 1441%

Taxes Payable 127 176 -49.0 -28%

Other Short Term Financial Liabilities 0 0 0.0 0%

Total Current Liabilities 827 631 195.4 31%

Bank Loans & Provisions 258 177 81.6 46%

Total Long Term Liabilities 258 177 81.6 46%

Stockholders´ Equity 7,255 7,060 195 3%

Capital Stock 4,507 4,507 0.00 0%

Premium in issue of shares 0.211 0.211 0.00 0%

Retained Earnings and Reserves 1988 1960 27.47 1%

Other Results 457 344 113.56 33%

Minority Interest 302 248 53.89 22%

Liabilities + Stockholders´ Equity 8,340 7,868 472 6%

Balance Sheet Common-size analysis

47

-30%

-20%

-10%

0%

10%

20%

30%

BOLSA NAFTRAC

Stock Performance

Source: Bloomberg

Analyst Recom.Target Price

Date

Grupo Santander Buy 54 09/sep/2020

J.P. Morgan Buy 50 21/jul/2020

HSBC Hold 38 17/sep/2020

Credit Suisse Buy 54 25/sep/2020

Itau BBA Securities Buy 41.5 15/jul/2020

Barclays Sell 46 12/aug/2020

Bradesco BBI Buy 51 03/jun/2019

Bank of America Buy 50 17/sep/2020

UBS Hold 44 18/feb/2020

Monex Hold 48 21/apr/2020

Vector Buy 56 20/jul/2020

Average 48

Top 10 HoldersAs of September 30th, 2020

Capital Group Companies Inc 9.2%

Invesco Ltd 4.3%B3 SA - BRASIL BOLSA BALCAO 4.1%J.P. Morgan 3.5%Franklin Resources 3.4%

Vanguard Group Inc 2.6%

Seafarer Capital 2.4%

Fil Ltd 2.1%

Blackrock 1.9%

Goldman Sachs 1.6%

Annual Return: 35.0% Annual data: June 30th, 2020 BOLSAA NAFTRAC

Max 50.8 45.9

Min 28.7 33.0

Average Price 42.5 39.8

Close 50.1 37.4

Max Volume (thousands) 7,268.6 91,345.8

Min Volume (thousands) 27.4 183.1

Average Volume (thousands) 1,134.2 15,055.3

Dividend Per Share 1.8 0.4

Dividend Yield 4.3% 0.9%

Return 3M (Price) 16.5% -0.8%

Return 12M (Price) 35.0% -12.9%

Return 12M (TSR) 39.9% -12.1%

Return YTD (Price) 21.2% -14.0%

3M: 16.5%

September 30th, 2019 – September 30th, 2020

BolsaA vs Naftrac (5-year)

49

-25%

-5%

15%

35%

55%

75%

95%

11

/09

/20

15

15

/10

/20

15

19

/11

/20

15

22

/12

/20

15

26

/01

/20

16

29

/02

/20

16

05

/04

/20

16

06

/05

/20

16

08

/06

/20

16

11

/07

/20

16

11

/08

/20

16

13

/09

/20

16

17

/10

/20

16

18

/11

/20

16

23

/12

/20

16

25

/01

/20

17

28

/02

/20

17

03

/04

/20

17

09

/05

/20

17

09

/06

/20

17

12

/07

/20

17

14

/08

/20

17

14

/09

/20

17

17

/10

/20

17

21

/11

/20

17

26

/12

/20

17

29

/01

/20

18

02

/03

/20

18

09

/04

/20

18

11

/05

/20

18

13

/06

/20

18

16

/07

/20

18

16

/08

/20

18

18

/09

/20

18

19

/10

/20

18

23

/11

/20

18

28

/12

/20

18

31

/01

/20

19

06

/03

/20

19

09

/04

/20

19

15

/05

/20

19

17

/06

/20

19

18

/07

/20

19

20

/08

/20

19

23

/09

/20

19

24

/10

/20

19

27

/11

/20

19

02

/01

/20

20

05

/02

/20

20

09

/03

/20

20

14

/04

/20

20

18

/05

/20

20

18

/06

/20

20

21

/07

/20

20

21

/08

/20

20

BolsaA Naftrac

September 30, 2015- September 30 2020

TSR BolsaA 125%

TSR Naftrac -6%

Local

Competitor

Changes to SIC’s

business model

(Global Market)

LatAm

Exchanges

Data

Price Return BolsaA 89%

Price Return Naftrac -12%COVID-19

Contacts

Luis René Ramón

Director of Financial Planningand Investor Relations

[email protected]+52 (55) 53 42 9027

Paseo de la Reforma 255, Col. Cuauhtémoc, 06500, Cd. de México

For information on the Group: www.bmv.com.mx

M. Nalleli Barajas

Head of Corporate Responsibility

[email protected]+52 (55) 53 42 9293

50

investor relations 9m 2020...carlos hank gonzález eduardo osuna osuna ernesto ortega arellano...

Documents