Grupo upo TRAXION ON Corporate Presentation Sant ntander ander XXII I Annual ual Latin in Amer erica ica Confer eren ence Cancun, Mexico January, 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? TRAXIO ION: N: The large rgest st transp sporta tati tion and logist istics ics inve vestmen stment pla latfo form rm in Mexico xico ▪ Integrate te a transportation and logistics platform in an accretiv tive manner and maximize its effi ficie iency ▪ Render a one one-sto top solution for cargo and logistic tics Core strate tegy gy ▪ Operate te companies under a best-practic tices approach to optimize performanc nce ▪ Create sustainable long-term value for clie ients ts, inves esto tors, and stakehol olde ders 5,319 19 5 Ps. 6.7 billion Ps llion +9,500 Power units Leading companies LTM revenues 1 Employees +900 17.5x 5x +365 5 Nationwid wide Footprint Million kilometers driven annually Clients Fleet growth in 6 years Service Segments Cargo & Logistic tics Passenger Student transportation & 1,562 power units 3,408 dry vans personnel commuting ~5.2 years avg. fleet age +307,000 sqm of logistics 3,758 power units space (3.2 mm sqft) (16.6 years avg. of sector) 1 Last-twelve-months accumulated revenues 3 Financial and operating data as of September 30, 2017
Exceptional Growth Story 2.3x 5.7x Ps. 3.9 Ps .9 bn bn 17.5 .5x x Larger than the immediate Larger than the average Successfully invested in Fleet growth competitor company in the sector M&A since 2011 Fleet CAGR 61.5% 61.5% IPO 5,319 4,963 776 760 752 300 316 Fleet (power units) 2011 2012 2013 2014 2015 2016 2017 4 Companies logos indicate the date of integration to Traxion
Undisputed Leadership Auto toEx Expre ress LIPU PU Transporte rte Seguro ro Transporta rtadora ra Egoba Grupo MyM Grupo SID Fronte tera ra Norte te Personnel Commuting International Freight International Freight Domestic freight and Logistics and Domestic and Student Moving and Intermodal Freight Transportation Leader Leader Leader Leader Leader Serv rvic ices International freight Less-than-truckload Domestic freight & border transfers (LTL) Intermodal Logistics services Personnel commuting Student transportation Relocation and moving Tourism 5
Unique Investment Opportunity We believe we are the only consolidator in the sector in Mexico Attractive valuation relative to peers Highly-fragmented sector provides accretive growth opportunities Only consolidator with financial capacity to seize growth opportunities in an accretive manner Sound balance sheet: low leverage and stable margins Proven M&A track record Attractive sector with significant organic growth potential Best-in-class operating platform, supported by market best practices, ensures high performance 6
Diversified Business Model Diversification contributes to a resilient business model 11% 36% 38% 3% 51% 3% 6% Revenue Breakdown wn Revenue Breakdown wn Top-50 50 by Segment by by Secto by tor 19% 23% 57% 11% Retail Auto Industrial The top-50 clients represent 57% of Cargo Logistics Passenger Education Electronics Government total revenues Other sectors Top-10 clien ient breakdown wn Inte tern rnatio tional allian liances with th top opera rators rs Clien ient Secto tor % % of of Revenue Segment serv rved +33 alliances with the best transportation players 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 clients 26% 26% 7 Figures as of September 30, 2017
Key Attributes TRAXION is the leading transportation company in the country… Sole le Pla layer er Mana nage gemen ent Servi vice ce Portfolio olio Track ack Record ord ▪ Only publicly-traded company ▪ Seasoned management team; ▪ Premium, diversified service ▪ Succesful growth track record within a family-owned sector extensive expertise in the portfolio ▪ Organic and inorganic growth sector ▪ First mover advantage ▪ Long-lasting relationships with potential ▪ Sound corporate governance blue-chip clients ▪ Only consolidator in a highly ▪ High efficiency in operations bodies ▪ Highest satisfaction levels and fragmented sector and processes ▪ Industry best practices retention rates … with extensive expertise in the sector through several buisness cycles 8
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