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Grupo TRAXION
Corporate Presentation
UBS Latin America Infrastructure & Industrials Conference
New York
July 30 & 31, 2018
Disclaimer
The material that follows presents general background information about Grupo Traxion, S.A.B. de C.V. (the “Company”) as of the date of the presentation. This information consists of
information concerning the Company. It is information in summary form and does not purport to be complete. It is not intended to be relied upon as advice to potential investors and
does not form the basis for an informed investment decision. This presentation is strictly confidential and may not be disclosed to any other person.
The information in this presentation is preliminary in nature and subject to change. No representation or warranty, express or implied, is made concerning, and no reliance should be
placed on, the accuracy, fairness or completeness of the information presented herein. All information in this presentation is subject to verification, correction, completion and change
without notice. In giving this presentation, none of the Company, any of its affiliates, directors, officers, agents or employees, nor any placement agents, managers or initial purchasers
undertake any obligation to provide the recipient with access to any additional information or to update this presentation or any information or to correct any inaccuracies in any such
information.
This presentation may contain statements that are forward-looking. Such forward-looking statements are only predictions and are not guarantees of future performance. Investors are
cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business
environments of the Company and its subsidiaries that may cause the actual results of the Company to be materially different from any future results expressed or implied in such
forward-looking statements. None of the Company, any of its affiliates, directors, officers, agents or employees, nor any placement agents, managers or initial purchasers, shall be
liable to any third party (including investors) for any investment or business decision made or action taken in reliance on the information and statements contained in this presentation
or for any consequential, special or similar damages.
Securities may not be offered or sold in the United States unless they are registered or exempt from registration under the U.S. Securities Act of 1933, as amended (the “Securities
Act”). This presentation is being made only to investors that, by means of their attendance at this presentation, represent that they are “qualified institutional buyers” as that term is
defined in Rule 144A under the Securities Act. Any offering of securities to be made outside of Mexico will be made by means of an offering memorandum that will be sent to you at
the address that you provided today. Such offering memorandum will contain, or incorporate by reference, detailed information about the Company and its business and financial
results, as well as its financial statements. Investment decisions should be solely made on the basis of the offering memorandum and not on the basis of this presentation.
This presentation does not constitute an offer, or an invitation or solicitation for an offer, to subscribe for or purchase any securities, nor shall any part of it nor the fact of its
dissemination form part of or be relied on in connection with any contract or investment decision relating thereto. Neither this presentation nor anything contained herein shall form the
basis of any contract or commitment. If the Company should at any time commence an offering of securities, any decision to invest in such offer to subscribe for or acquire securities of
the Company must be based wholly on the information contained in the offering memorandum to be issued by the Company in connection with any such offer and not on the contents
hereof.
By reading this presentation, you agree to be bound by terms and conditions set out above.
The Company’s management highly recommends the investment community to thoroughly review the information contained in the offering memorandum and consult with independent
advisors deemed necessary before making any investment decisions. A stock investment is complex, is subject to a variety of risks and uncertainties and may result in significant
losses, including the full amount invested.
Who is Traxion?TRAXION: The largest transportation and logistics investment platform in Mexico
Core strategy
▪ Integrate a transportation and logistics platform in an accretive manner and maximize its efficiency
▪ Render a one-stop solution for cargo and logistics
▪ Operate companies under a best-practices approach to optimize performance
▪ Create sustainable long-term value for clients, investors, and stakeholders
3
Financial and operating data as of June 30, 2018
Includes 570 units of Redpack’s last-mile fleet
Transportation and Logistics Solutions
Cargo & Logistics Personnel & student transportation
6,634Power units1
Ps. 2,236 million2Q18 revene
+12,500
Employees
+106Million kilometers driven
in 2Q18
+1,000Clients
+22xFleet growth in 7 years
Brands
Undisputed Leadership
4
Domestic freight
Intermodal
Student transportation
Services
International freight
& border transfers
Logistics services
Relocation and moving
Less-than-truckload
(LTL)
Personnel commuting
Tourism
Leader Leader Leader Leader Leader Leader
Packaging and courier Last mile
Diversified Business Model
36%
23%
19%
6%
3%
3%
11%
Retail Auto Industrial
Education Electronics Government
Other sectors
Client Sector % of Revenue Segment served
1 Retail 5.0% Cargo
2 Food 2.8% Logistics
3 Pulp & paper 2.7% Cargo
4 Retail 2.7% Cargo
5 Government 2.4% Cargo
6 Auto 2.3% Passenger
7 Auto 2.2% Passenger
8 Retail 2.0% Cargo
9 Auto 2.0% Cargo
10 Electronics 1.7% Logistics
Top-10 client breakdown
Revenue Breakdown
by Segment
Revenue Breakdown
by SectorTop-50
57%
The top-50 clients represent 57% of
total revenues
Top-10 clients1 26%
International alliances with top operators
+33 alliances with the best transportation players
Diversification contributes to a resilient business model
5
Figures as of June 30, 2018
1 Top 10 figures as of September 30, 2017
Figures as of December 31, 2017
49%
8%
43%
Cargo Logistics Passenger
Sole Player Management Service Portfolio Track Record
…with extensive expertise in the sector through several buisness cycles
TRAXION is the leading transportation company in the country…
6
▪ Only publicly-traded company
within a family-owned sector
▪ First mover advantage
▪ Only consolidator in a highly
fragmented sector
▪ Seasoned management team;
extensive expertise in the
sector
▪ Sound corporate governance
bodies
▪ Industry best practices
▪ Premium, diversified service
portfolio
▪ Long-lasting relationships with
blue-chip clients
▪ Highest satisfaction levels and
retention rates
▪ Succesful growth track record
▪ Organic and inorganic growth
potential
▪ High efficiency in operations
and processes
Key Attributes
Proven M&A Track Record
TRAXION has been able to successfully integrate several companies…
7
Best practices conveyance Procurement efficiencies Commercial intelligence
…while maintaining financial discipline on each transaction
Balanced exposure to industries Diversification of service portfolio EBITDA efficiency
The integration of all 5 companies was successful, and significant improvements were reached in all cases
2011 2018
Shared-Services Center
8
• Operations
• Fleet
• Sales
• HHRR
• Adminsitrative
• Finance
• Procurement
• Operations
• Fleet
• Sales
• HHRR
• Adminsitrative
• Finance
• Procurement
• Operations
• Fleet
• Sales
• HHRR
• Adminsitrative
• Finance
• Procurement
• Operations
• Fleet
• Sales
• HHRR
• Adminsitrative
• Finance
• Procurement
• Operations
• Fleet
• Sales
• HHRR
• Adminsitrative
• Finance
• Procurement
Shared
Services
Center
Shared Services Center
• HHRR
• Operations
• Fleet
• Sales
• Operations
• Fleet
• Sales
• Operations
• Fleet
• Sales
• Operations
• Fleet
• Sales
• Operations
• Fleet
• Sales
• Operations
• Fleet
• Sales
• HHRR
• Adminsitrative
• Finance
• Procurement
• Operations
• Fleet
• Sales
• Procurement• Adminsitrative
• Finance
TRAXION’s current structure
TRAXION’s structure at YE2018
Growth Model
9
Companies Services & Regions
INORGANIC
GROWTH
ORGANIC
GROWTH
Fleet
Infrastructure Human CapitalProcesses & Operations
Continuous enhancement
Commercial intelligence
Fleet management
Best practices
Synergies
Efficiencies
Economies of scale
Talent attraction & retention
Management strengthening
Leadership
Domestic freight
Intermodal
Student
transportation
International freight
& border transfers
Logistics services
Relocation
and moving
Less-than-truckload
(LTL)
Personnel
commuting
Tourism
Packaging & courier Last mile
Domestic Peers
Cargo & Logistics
Personnel & Student Transportation
Truckload Intermodal Logistics
CompanyPower
Units1
Domestic
Freight
Intnl
Freight &
Transfer
Relocation
& Moving
Less than
TruckloadIntermodal
Logistics
ServicesLast Mile
Package &
CourierPersonnel Student Tourism
6,634
3,0052
1,887
2,077
2,477
1,625
1,065
1,021
992
TRAXION provides the broadest and most complete offering of integrated transportation premium services…
Large-scale Nationwide footprint Competitive cost structure
1 Includes trucks, buses and vans; excludes trailers; for TRAXION average fleet as fo June 30, 2017; for peers fleet information from T21 Magazine, December 2017
2 Includes the fleets of Transportes Monterrey and Transportes LarMex; Alianza trayecto is a comercial alliance not an established company
10
International Peers
.. and even broader comapred to its international peers
Source: Company websites and anual reports11
Service
Dedicated
Truckload
Intermodal
Refrigerated
Cross border
Drayage
Expedited
Flatbed
Last mile
Logistics
LTL
Package & courier
Personnel transportation
Student transportation
Appealing Sector
12
Overview
▪ Trucking and bus transportation are essential components in an industrialized economy
▪ Virtually every manufactured or consumer product, and person is directly related to transportation
▪ Road is the main cargo method in Mexico
▪ Few companies offer premium, integrated services
▪ Large and fragmented industry (+917k power units)
▪ No player has even 1% market share
Opportunities
• Large companies outsourcing transportation services
• E-commerce expanding
• Fleet flexibility provides access to unattended markets
367 413 435 470 522
186
244284
273292
52
7790
105
120
1995 2000 2005 2010 2015
Road Maritime Rail
605
734809
848
934(excludes air freight)
Source: SCT
1 Includes all units as presented by SCT
2 CAGR includes all the units in the cargo and logistics segment
Million Tons Transported
659716 729
763806
865
Number of units (000s)1
Cargo Transportation Industry
Large companies have grown faster than the rest of the industry2011-2017
CAGR
2.5%
4.7%
5.2%
10.7%
2011-2016
CAGR2
39.1%
148 170 186 202 222 246 272
112122 123 127
133143
152207221 226
235245
260273191
203 194199
206215
221
2011 2012 2013 2014 2015 2016 2017
Large companies (+100 units) Medium companies (31-100 units) Small companies (6-30 units) Owner operators (1-5 units)
917 5.7%
Attractive Sector Fundamentals
Transportation is a very important component in the Mexican economy
Trasportation industry
in Mexico
Us. 90 bn
Road
Air
Rail
Maritime
Us. 77 bn
Us. 8 bn
Us. 3 bn
Us. 1 bn
85.9% 9.2%
3.8%
1.1%
Road Air Rail Maritime
Transportation market
in Mexico
…and it is an extremely fragmented sector with tremendous consolidation potential
+145,000 Companies
+917,000 Power units
+900 potential M&A targets
Transportation industry
in Mexico contributes
5.5%
To annual GDP
13Source: SCT; exchange rate $18.6234 MXN/USD – source: Banxico.org.mx as of July 26, 2018
Compelling Future Growth Drivers
Several variables are expected to fuel growth in the transportation industry
GDP Growth
▪ Mexico is the 15th largest economy in the world by GDP1
▪ It is expected that Mexico more than doubles its GDP by 20301
▪ The transportation sector has a strong correlation to GDP growth
1 Source: https://www.pwc.com/gx/en/world-2050/assets/pwc-the-world-in-2050-full-report-feb-2017.pdf;
https://data.worldbank.org/data-catalog/GDP-ranking-table
E-commerce
Infrastructure
Favorable demographics
▪ Virtually no logistics backbone to support e-commerce operations
▪ e-commerce is expected to consistently gain penetration
▪ Logistics and transportation must synchronize with e-commerce trends
▪ The best demographic bonus: increasing working-age population
▪ Emerging middle-class with increasing disposable income
▪ Healthy unemployment rates and underlevered population
▪ Mexican government has committed to invest in infrastructure
▪ Roads and highways to absorb the most infrastructure investments
▪ Mexico is a competitive investment destination
Positive macro
environment
▪ The largest manufacturing installed capacity in the region
▪ Structural reforms will be a paradigm shift in the mid-term
▪ Internal consumption is expected to continue to grow
14
Mexico is expected to
require more freight, logistics
and passenger services
The Future of Transportation in Mexico
How TRAXION envisions the future of transportation in Mexico?
15
Offer integrated solutions from start to end
Have a greater specialization and enter several niches
Opportunities in Mexico Global Opportunities and Trends
▪ Refrigerated cargo
▪ Fuel transportation
▪ Logistics services
▪ E-Commerce/Last mile
▪ Logistics services
▪ E-Commerce/Last mile
E-commerce in the United States
16
182212
240275
315
366
420
482
554
636
730
2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
1720
23
28
33
40
48
58
71
2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
E-commerce in the U.S. – Market Value
(billion USD)
Logistics Services for e-commerce in the U.S. - Market Value
(billion USD)
▪ E-commerce has gained great relevance in the past decade
▪ In the U.S., the logistics services industry has driven the e-commerce channel
Mexico will likely experience the same phenomenon as E-commerce figures
currently look at those of the U.S. 10 years ago
11 1625
3648
62
82
108
140
176
217
264
318
2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
8 9
11
13
16
20
24
30
37
2014 2015 2016 2017 2018E 2019E 2020E 2021E 2022E
E-commerce in Mexico
17
E-commerce Retail in Mexico – Market Value
(billion USD)
Logistics Services for e-commerce in Mexico - Market Value
(billion MXN)
E-Commerce = Logistics Services + Packaging
Global commerce is evolving
The momentum of retail is diminishing
There is a globalization trend
The world is changing, and this
change generates great opportunities
in the specialized transportation and
logistics…
…and this is our business
Attractive Valuation Relative to Peers
18
Financial and operating data as of June 30, 2018
Source: UBS – US Transportation Weekly 26 May, 2018
1 – Closing price of July 26, 2018
Figures in million MXN
2018E
Company FV/EBITDA P/E
11.0x 29.7x
12.4x 19.0x
11.1x 22.4x
8.0x 16.4x
7.4x 18.5x
9.0x 16.3x
6.4x 19.6x
Media 9.3x 20.3x
Median 9.0x 19.0x
@ 15.601 6.3x 14.3x
Discount vs comparables (32.2)% (29.3)%
Valuation Analysis
Share price @ Jul 26 15.60
Shares outstanding 543
Market cap 8,478
Net debt 1,889
Firm value 10,367
Firm value per share 19.07
Discount vs FV (18.2)%
TRAXION EBITDA 2018E 1,640
EV/EBITDA 2018E 6.3x
Total Assets 14,155
Total Liabilities 4,438
Shareholders' Equity 9,717
Book Value per Share 17.88
Discount to Book Value (14.6)%
Comparables FV/EBITDA Firm Value Equity ValueImplied Price
per Share
Maximum 12.4x 20,336 18,447 33.94
Average 9.3x 15,299 13,410 24.67
Minimum 6.4x 10,496 8,607 15.84
Recent Acquisitions: REDPACK
19
A leading domestic last-mile service provider
Company Overview Acquisition Overview
Key Mexican last-mile player
▪ Last-mile services:
• Domestic: Express, EcoExpress, Metropolitan
• International: Economy, Express, Import/Export, Less-than-truckload
• Logistics solutions: e-commerce, retail
▪ Footprint: 192 points of sale nationwide
▪ Fleet: 570 units1
• 89 trucks
• 287 light trucks
• 38 cars
• 156 motorcycles
▪ Acquisition date: 17 May 2018
▪ Acquisition Price: Ps. 470 million
• Ps. 163 million – debt assumption
• Ps. 307 million – cash payment
Acquisition Rationale
Competitive Advantages
▪ Key player
▪ Strong brand positioning
▪ Broad national footprint
▪ Commercial agreements
▪ Services pricing
▪ Service umbrella
▪ Expertise
▪ Systems
in Platform
▪ LTL service growth through REDPACK’s
installed capacity and fleet
▪ Consolidation of LTL + courier and
messenger segments
▪ Smaller vehicles fit for last-mile service
▪ Back-office integration
▪ Fleet maintenance
▪ Procurement synergies
▪ Optimization of logistics facilities
1 Fleet size os of June 30, 2018; fleet at acquisition date was 543 units
Appendix
Nationwide Footprint
Total nationwide coverage and access with broad operations in the most dynamic economic regions of the country
Nuevo Leon
4.0%
Quintana
Roo
Baja
California
Sonora
3.9%
3.8%
Jalisco
San Luis Potosi
3.9%
Aguascalientes
5.4%
Guanajuato
5.0%
6.3%
Queretaro
5.4%
3.3%
Main Operations / Economic Regions
All Subsidiaries Presence No Presence
Average National GDP growth2.8%
Source: INEGI, Company information21
Long-Lasting Client Relationships
Blue-Chip client base
Customer Awards and Recognitions
65
2521 21 21 20 19 18
Average
26 years
22
• Truckload Provider of the
Year (‘05,’06, ‘07, ‘08)
• Logistics Provider of
Excellence (2012)
• Small International
Carrier of the Year in
Mexico (2013)
• Recognition of Effort and
Dedication for 38 years
of service (2013)
• Innovative Project (2013)
• Stellar Line (2014)
• Recognition for Contribution
to Operations (2015)
• Quality Week (2015)
• Fulfillment of Performance
and Service Indicators (2012)
• Best Supplier – Logistics and
Replenishment Category
• Recognition for Quality
Assurance and
Reliaility with Clients
• New Carrier of the Year
2016
• Distinguished
Provider 2003
Strategic Pillars
Operations Commercial M&A Finance
…through its well established strategy designed to maintain profitability
▪ Constant monitoring
▪ Continuous margin
improvement
▪ National footprint with
international capabilities
▪ Integral solutions
▪ High-quality, reliable
premium services
▪ Solid client relationships
▪ Brand differentiation
▪ Incremental share in
customers’ budgets
▪ Cross-selling
▪ Efficient capital
allocation
▪ Selective adquisitions
▪ Synergy and
implementation analisys
▪ Disciplined leverage
strategy
▪ Sound financial position
▪ Efficiencies and cost
controls
▪ Maximize returns
through capital
deployment
TRAXION has proven to grow successfully both organic and inorganically…
23
Best-In-Class Efficiency
Average Fleet
Age
Average Fleet
Utilization Rate
Logistics Facilities
Utilization Rate
5.2
years95% 96%
State-of-the-art systems
World-Class certifications
24/7 safety and monitoring
Continuous driver training
High-quality fleet maintenance
Commercial intelligence
+
Client Retention
Rate
95%
High efficiency in all metrics
24
Commercial Strategy
Highly differentiated comercial strategy fuels organic growth
25
Client relationships
▪ Highly-specialized client service team
▪ Focus on maintaining client base
▪ Capitalize our clients’ growth
Cross-selling
New clients
▪ Fully-dedicated corporate team focused on identifying opportunities
▪ Broad service offering
▪ Complementary service offering and business segments
▪ Highly-seasoned sales team
▪ Effective corporate strategy
▪ Servce offering contributes to attract potential clients
Integrated solutions for our clients’ needs Within our existing client base
Cargo LogisticsPassenger
M&A Criteria
TRAXION has a clear and thorough M&A selection criteria…
Additional
transportation-related
services
Increase our exposure
to current service
portfolio
Potential for synergies
and economies of scale
Opportunistic
transaction approach
Medium and large
companies
Well-run, succesful
and profitable
companies
Strong presence
and footprint in their
region or niche
Seasoned and
commited management
Focus on target companies with core abilities…
Key target selection criteria…
… that ensures that every transaction is accretive
Clearly identified opportunities
Dry vans, containers and flatbeds
Parcel and packaging
Logistics, warehousing and storage
LTL freight
Petrochemical and hydrocarbon
transportation
Refrigerated cargo
Personnel and student transportation
26
Intermodal
Unique Platform in the Market
Best practices in shared services
27
Procurement
Finance
IT Systems
Human
Resources
Commercial
Strategy
Corporate support
Work groups
Best practices sharing
Continuous improvement
Business knowledge sharing
Cost reduction
High-quality servicing
Efficient management
Integration of new companies
Constant growth
EBITDA
GROWTH
Increase synergies potential
Human Resources CommercialIT Procurement
▪ Designated IT Budget
▪ Plan of IT corporate
initiatives
▪ Most robust IT system in the
industry
▪ Integration culture
▪ Build management and
leadership development
programs
▪ Best processes and policies
of the industry
▪ Cost savings through scale:
fuel, tires, lubricants, and
other
▪ Cross selling
▪ Commercial strategy
Financial & Operating Results
28
Second Quarter Six Months ended June 30
Financial Indicators 2018 2017 ∆ 2018 2017 ∆
Consolidated revenue 2,236 1,777 25.9% 4,095 3,465 18.2%
Consolidated operating income 271 221 22.8% 407 390 4.4%
Consolidated EBITDA1 428 334 28.2% 710 630 12.8%
EBITDA margin 19.1% 18.8% 30 bps 17.3% 18.2% (90) bps
Consolidated net income 250 48 419.1% 101 53 91.6%
Earnings per share2 0.46 0.15 216.5% 0.19 0.16 16.8%
Operating Indicators3,4 2018 2017 ∆ 2018 2017 ∆
Kilometers driven (million) 106.2 95.5 11.2% 200.9 188.5 6.6%
Cargo 44.4 44.6 -0.4% 85.5 88.6 -3.5%
Contracted personnel and student transportation 61.8 51.0 21.3% 115.5 99.9 15.5%
Average fleet size (power units) 6,634 5,275 25.8% 6,490 5,242 23.8%
Cargo 1,625 1,558 4.3% 1,628 1,552 4.9%
Contracted personnel and student transportation 4,439 3,717 19.4% 4,292 3,690 16.3%
Last-mile5 570 - - 570 - -
Avg. revenue per kilometer6 (Ps./km.)
Cargo 24.35 20.06 21.4% 22.45 19.57 14.7%
Contracted personnel and student transportation 15.46 14.77 4.7% 15.31 14.41 6.3%
Avg. cost per kilometer7 (Ps./km.)
Cargo 16.69 14.21 17.4% 16.21 14.41 12.5%
Contracted personnel and student transportation 10.30 10.29 0.1% 10.25 10.22 0.3%
[1] EBITDA is operating income plus depreciation and amortization.[2] For 2Q17 and six months ended June 30, 2017 EPS was calculated using a weighted average of 331,355,360 shares, and 543,478,261 for 2Q18.[3] Unconsolidated figures including inter-company transactions. [4] Includes cargo; does not include neither logistics nor last-mile fleet.[5] Last-mile fleet units include Redpack’s fleet consisting of 89 trucks, 287 light trucks, 38 cars, and 156 motorcycles.[6] Does not include information for Redpack’s fleet (last-mile).[7] Means costs incurred per driven kilometer: wages, maintenance, net fuel, net tolls, and other costs, including depreciation and excluding warehousing costs.
Key Financial & Operating Data per SegmentCargo & Logistics
29
Personnel & Student Transportation
Second Quarter Six months ended June 30
Financial Indicators 2018 2017 ∆ 2018 2017 ∆
Cargo and logistics revenue 1,281 1,024 25.1% 2,303 2,025 13.7%
Total costs 918 757 21.3% 1,682 1,504 11.8%
Operating expenses1 228 187 22.1% 438 352 24.3%
Operating income 151 101 49.9% 203 196 3.4%
EBITDA 228 167 36.7% 356 344 3.4%
EBITDA margin 17.8% 16.3% 150 pbs 15.4% 17.0% (160) pbs
Operating Indicators 2018 2017 ∆ 2018 2017 ∆
Kilometers driven (million) 44.4 44.6 (0.4)% 85.5 88.6 (3.5)%
Average fleet size (power units) 1,625 1,558 4.3% 1,628 1,552 4.9%
Last-mile fleet2 (units) 570 - 570 -
Average fleet age (years) 5.2 5.4 5.2 5.4
Average revenue per km.3 (Ps.) 24.35 20.06 21.4% 22.45 19.57 14.7%
Average cost per km. (Ps.) 16.69 14.21 17.4% 16.21 14.41 12.5%
Warehouse space (m2) 351,500 289,500 21.4% 351,500 289,500 21.4%
Average revenue per m2 (Ps.) 164.35 124.64 31.9% 159.83 139.98 14.2%
Average cost per m2 (Ps.) 108.27 113.08 -4.3% 105.08 104.51 0.5%
[1] Includes general expenses net of other income, other expenses and allowance for doubtful accounts.[2] Last-mile fleet units include Redpack’s fleet consisting of 89 trucks, 287 light trucks, 38 cars, and 156 motorcycles.[3] Includes cargo; does not include neither logistics nor last-mile fleet.
Second Quarter Six months ended June 30
Financial Indicators 2018 2017 ∆ 2018 2017 ∆
Personnel and student transportation revenue 955 753 26.9% 1,792 1,440 24.5%
Total costs 636 524 21.4% 1,196 1,021 17.1%
Operating expenses1 183 124 47.8% 362 229 58.1%
Operating income 133 124 7.4% 242 211 15.0%
EBITDA 202 161 25.6% 371 283 31.3%
EBITDA margin 21.2% 21.4% (20) pbs 20.7% 19.7% 100 pbs
Operating Indicators 2018 2017 ∆ 2018 2017 ∆
Kilometers driven (million) 61.8 51.0 21.3% 115.5 99.9 15.5%
Average fleet size (power units) 4,439 3,717 19.4% 4,292 3,690 16.3%
Average fleet age (years) 5.2 6.5 5.2 6.5
Average revenue per km. (Ps.) 15.46 14.77 4.7% 15.31 14.41 6.3%
Average cost per km. (Ps.) 10.30 10.29 0.1% 10.25 10.22 0.3%
Sound Balance Sheet
Summary Balance Sheet Jun 18
Current assets 3,294
Non-current assets 10.861
Total assets 14,155
Current liabilities 1,604
Non-current liabilities 2,833
Total liabilities 4,438
Shareholders' equity 9,717
Liabilities + Equity 14,155
30
Debt Maturity
Figures in million pesos; financial ratios were calculated on a last twelve month (LTM) EBITDA basis, with no Pro forma figures; includes hedges
Debt Breakdown 2Q18 2Q17 ∆% ∆$
Short-term debt 122 378 (67.7)% (256)
Short-term capital leases 74 59 26.6% 16
Long-term debt 1,890 2,805 (32.6)% (915)
Long-term capital leases 339 185 83.2% 154
Total debt 2,426 3,427 (29.2)% (1,001)
Cash 537 366 46.9% 171
Net debt 1,889 3,061 (38.3)% (1,173)
Leverage ratios 2Q18
Total debt / EBITDA LTM 1.77x
Net debt / EBITDA LTM 1.38x
Total liabilities / Shareholders’ equity 0.46
8%
17%21%
54%
Up to 12 months 12-24 months 24-36 months > 36 months
Fixed Floating
Rate
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