Consolidated Financial Statements and Report of Independent Registered Public Accounting Firm
Grupo TMM, S.A.B. and Subsidiaries
December 31, 2020 and 2019
Contents
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Page
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Report of independent registered public accounting firm
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1 - 3
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Consolidated statements of financial position
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4
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Consolidated statements of profit or loss
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5
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Consolidated statements of comprehensive income
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6
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Consolidated statements of changes in stockholders’ equity
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7
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Consolidated statements of cash flow
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8
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Notes to the consolidated financial statements
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1
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Nature of operations
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9
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2
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General information and statement of compliance with IFRS
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13
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3
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Changes in accounting policies
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14
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4
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Summary of significant accounting policies
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15
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5
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Acquisitions and disposals
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29
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6
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Cash and cash equivalents
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31
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7
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Trade receivables
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32
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8
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Other accounts receivable
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33
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9
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Property, vessels and equipment
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33
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10
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Leases
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36
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11
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Concession rights
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39
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12
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Intangible assets
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40
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13
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Impairment of long-lived assets
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40
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14
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Financial assets and liabilities
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42
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15
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Balances and transactions with related parties
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46
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16
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Accounts payable and accrued expenses
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47
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17
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Stockholders’ equity
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47
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18
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Revenues
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49
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19
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Other (expenses) income
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50
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20
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Interest expense and other financial costs
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50
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21
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Income tax and tax loss carryforwards
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50
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22
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Segment reporting
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52
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23
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Employee benefits
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54
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24
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Earnings per share
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58
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25
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Fair value measurement
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58
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26
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Financial instruments risk
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60
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27
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Capital management policies and procedures
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65
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28
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Commitments and contingencies
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65
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29
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Subsequent events to the reporting date
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67
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30
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Authorization of the consolidated financial statements
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68
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Salles, Sainz – Grant Thornton, S.C.
Periférico Sur 4348
Col. Jardines del Pedregal
04500, Mexico City
www.grantthornton.mx
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Report of Independent Registered Public Accounting Firm
To the Stockholders and Board of Directors of
Grupo TMM, S.A.B.:
Opinion on the Financial Statements
We have audited the accompanying consolidated statements of financial position of Grupo TMM, S.A.B. and subsidiaries (‘Grupo TMM’ or the ‘Company’) as of December 31, 2020 and 2019, the related consolidated statements of profit or loss,
comprehensive income, changes in stockholders’ equity, and cash flows, for each of the three years in the period ended December 31, 2020 and the related notes (collectively referred to as the ‘financial statements’).
In our opinion, the financial statements present fairly, in all material respects, the financial position of Grupo TMM as of December 31, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in
the period ended December 31, 2020 in conformity with International Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the
Public Company Accounting Oversight Board (United States) (‘PCAOB’) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement,
whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal
control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining,
on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or
disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgements. The communication of critical audit matters does not alter in any way our opinion on the financial
statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
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Critical audit matter
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How the matter was addressed in the audit
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Going concern evaluation. See Notes 1 and 4 to the consolidated financial statements
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Mexico, as well as other countries of the world, have suffered the effects of the COVID- 19 pandemic, which was declared as such by the World Health Organization in March 2020. These effects have been reflected in a decrease in
the revenues of the Company, mainly in the segment of Ports and terminals, starting as of the end of March 2020 and up to the date of this report. During this period, the Company has taken various actions to improve its financial
structure, such as delaying payments to suppliers and creditors, reduction of compensation to personnel, and non-essential expenses, among other things.
Based on evaluations carried out as mentioned in Note 1, Management determined that its consolidated financial statements as at December 31, 2020 have been prepared under the assumption that it operates on a going concern basis.
Pursuant to the effects described in the above paragraph, the transportation profit (loss) of the last fiscal years and the accumulated deficit as at December 31, 2020, this going concern evaluation is considered a critical audit
matter.
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Our audit procedures, among other things, included the following:
• evaluate the historical and projected information on operating profit or loss financial structure.
• analyze the business plan of the Company for the short, medium, and long-term, including the evaluation of the feasibility of its main projects.
• analyze the main financial ratios, key indexes and indicators of the industry in which the Company operates.
• reconcile the projected financial information with other elements of the consolidated financial statements, such as future cash flows used for the determination of the fair
value of the ships and evaluation of impairment of long-lived assets.
• we tested the key measures implemented, and we examined the updated contracts, employment contracts, and other supporting documentation.
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Critical audit matter
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How the matter was addressed in the audit
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Measured at fair value of properties and vessels. See Notes 9 and 25 to the consolidated financial statements
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The Company applies the revaluation model for its properties (land and buildings) and vessels, in accordance with IFRS. Under this model, the values of these assets are expressed at their fair value, the revalued amounts for
properties are determined by external professional appraisers and for vessels through the revenue technique (expected future cash flows).
We have considered this as a critical audit matter, given the importance of the impacts on the consolidated financial statements and the judgments and estimates that are required.
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Our audit procedures included, among others, the following:
• use of independent valuation experts to assist us in understanding and evaluating the assumptions, methodologies and input data used by the Company in its valuation process.
• validate the adequate recognition of the accounting effects of fair value measurements.
• verify compliance with the disclosures on accounting policies and aspects related to fair value measurements.
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Impairment of long-lived assets. See Note 13 to the consolidated financial statements
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The Company evaluates long-lived assets annually or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Long-lived assets amounted to $3,039,370 at December 31, 2020. An impairment
loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. We identified the long-lived impairment analysis as a critical audit matter because the analysis involves a high degree of
auditor judgment due to the significant estimation required to determine the recoverable amount of long-lived assets. In particular, the estimate of the recoverable amount was sensitive to significant assumptions, such as forecasted
revenues and gross margins and discount rate.
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Our audit procedures applied included, among other things, the participation of an independent evaluation expert to assist us in understanding and evaluating the assumptions, methodologies, and input data used by the Company,
particularly, the information related to revenue forecasts and gross margins of the main cash generating units, as well as the appropriate disclosure of the assumptions used, which are highly sensitive for the determination of the
recoverable amount of long-lived assets.
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We have served as the Company’s auditor since 2005.
Salles, Sainz – Grant Thornton, S.C.
Mexico City, Mexico
May 14, 2021
Grupo TMM, S.A.B. and Subsidiaries
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4
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Consolidated statements of financial position
As at December 31, 2020 and 2019
(Amounts in thousands of pesos, except number of shares)
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2020
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2019
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Assets
|
|
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Current
|
|
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|
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Cash and cash equivalents (Note 6)
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|
$
|
105,310
|
|
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$
|
476,714
|
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Restricted cash (Note 6)
|
|
|
37,672
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|
|
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36,085
|
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Trade receivables, net (Note 7)
|
|
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186,363
|
|
|
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344,030
|
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Other accounts receivable (Note 8)
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|
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264,261
|
|
|
|
421,770
|
|
Related parties (Note 15)
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42,228
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|
|
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163,344
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Materials and supplies
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53,853
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|
|
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60,964
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Prepayments
|
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32,465
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|
|
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22,696
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Total current assets
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722,152
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1,525,603
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Non-current
|
|
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Other accounts receivable (Note 8)
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|
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238,000
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|
|
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-
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Property, vessels and equipment, net (Note 9)
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2,531,996
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|
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2,285,420
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Right-of-use assets (Note 10)
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354,232
|
|
|
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560,099
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Intangible assets (Note 12)
|
|
|
151,250
|
|
|
|
141,484
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Concession rights, net (Note 11)
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|
|
1,892
|
|
|
|
5,676
|
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Other non-current assets
|
|
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31,025
|
|
|
|
45,493
|
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Total non-current assets
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|
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3,308,395
|
|
|
|
3,038,172
|
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Total assets
|
|
$
|
4,030,547
|
|
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$
|
4,563,775
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|
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|
|
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Liabilities
|
|
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Short-term
|
|
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Short-term portion of the financial debt (Note 14)
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$
|
129,085
|
|
|
$
|
139,189
|
|
Short-term leases liabilities (Note 10)
|
|
|
58,245
|
|
|
|
60,578
|
|
Trade payables
|
|
|
228,959
|
|
|
|
262,159
|
|
Accounts payable and accrued expenses (Note 16)
|
|
|
525,108
|
|
|
|
499,529
|
|
Related parties (Note 15)
|
|
|
1,458
|
|
|
|
87,573
|
|
Total short-term liabilities
|
|
|
942,855
|
|
|
|
1,049,028
|
|
|
|
|
|
|
|
|
|
|
Long-term
|
|
|
|
|
|
|
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Long-term portion of the financial debt (Note 14)
|
|
|
53,644
|
|
|
|
118,737
|
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Long-term lease liabilities (Note 10)
|
|
|
297,268
|
|
|
|
526,781
|
|
Acounts payable
|
|
|
23,551
|
|
|
|
46,742
|
|
Employee benefits (Note 23)
|
|
|
150,197
|
|
|
|
151,481
|
|
Deferred income tax (Note 21)
|
|
|
315,624
|
|
|
|
248,214
|
|
Total long-term liabilities
|
|
|
840,284
|
|
|
|
1,091,955
|
|
Total liabilities
|
|
|
1,783,139
|
|
|
|
2,140,983
|
|
|
|
|
|
|
|
|
|
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Stockholders’ equity (Note 17):
|
|
|
|
|
|
|
|
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Share capital (103,760,541 shares authorized and issued)
|
|
|
2,216,733
|
|
|
|
2,216,733
|
|
Treasury shares (1,577,700 shares)
|
|
|
(46,805
|
)
|
|
|
(46,805
|
)
|
Accumulated losses
|
|
|
(963,602
|
)
|
|
|
(565,526
|
)
|
Other components of equity
|
|
|
999,675
|
|
|
|
771,958
|
|
Controlling interest
|
|
|
2,206,001
|
|
|
|
2,376,360
|
|
Non-controlling interest
|
|
|
41,407
|
|
|
|
46,432
|
|
Total stockholders’ equity
|
|
|
2,247,408
|
|
|
|
2,422,792
|
|
Total liabilities and stockholders’ equity
|
|
$
|
4,030,547
|
|
|
$
|
4,563,775
|
|
The attached notes are part of these consolidated statements.
Grupo TMM, S.A.B. and Subsidiaries
|
5
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Consolidated statements of profit or loss
For the years ended December 31, 2020, 2019 and 2018
(Amounts in thousands of pesos, except per share amounts and number of shares)
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Revenue from transportation (Note 18)
|
|
$
|
1,203,281
|
|
|
$
|
1,475,683
|
|
|
$
|
1,523,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries, wages and employee benefits (Note 23)
|
|
|
341,399
|
|
|
|
343,700
|
|
|
|
368,614
|
|
Leases (Note 10)
|
|
|
312,463
|
|
|
|
300,466
|
|
|
|
436,469
|
|
Contracted services
|
|
|
293,543
|
|
|
|
448,217
|
|
|
|
413,060
|
|
Fuel, materials and supplies
|
|
|
170,753
|
|
|
|
206,820
|
|
|
|
211,793
|
|
Depreciation, amortization and loss from revaluation
|
|
|
141,051
|
|
|
|
182,880
|
|
|
|
80,277
|
|
Other costs and expenses
|
|
|
15,635
|
|
|
|
14,740
|
|
|
|
17,221
|
|
|
|
|
1,274,844
|
|
|
|
1,496,823
|
|
|
|
1,527,434
|
|
Transportation loss
|
|
|
(71,563
|
)
|
|
|
(21,140
|
)
|
|
|
(4,368
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expenses) income, net (Note 19)
|
|
|
(257,225
|
)
|
|
|
233,907
|
|
|
|
102,625
|
|
Operating (loss) profit
|
|
|
(328,788
|
)
|
|
|
212,767
|
|
|
|
98,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive financing cost:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
7,097
|
|
|
|
5,100
|
|
|
|
9,137
|
|
Interest expense and other financial costs (Note 20)
|
|
|
(75,654
|
)
|
|
|
(146,875
|
)
|
|
|
(84,890
|
)
|
Exchange (loss) gain, net
|
|
|
(25,145
|
)
|
|
|
24,875
|
|
|
|
5,844
|
|
|
|
|
(93,702
|
)
|
|
|
(116,900
|
)
|
|
|
(69,909
|
)
|
(Loss) profit before taxes
|
|
|
(422,490
|
)
|
|
|
95,867
|
|
|
|
28,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) (Note 21)
|
|
|
19,334
|
|
|
|
(64,575
|
)
|
|
|
(4,799
|
)
|
Net (loss) profit for the year
|
|
$
|
(403,156
|
)
|
|
$
|
31,292
|
|
|
$
|
23,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
(5,025
|
)
|
|
|
(772
|
)
|
|
|
4,543
|
|
Controlling interest
|
|
|
(398,131
|
)
|
|
|
32,064
|
|
|
|
19,006
|
|
|
|
$
|
(403,156
|
)
|
|
$
|
31,292
|
|
|
$
|
23,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit per share for the year (Note 24)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per share for the year
|
|
$
|
(3.896
|
)
|
|
$
|
0.314
|
|
|
$
|
0.186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares for the year
|
|
|
102,182,841
|
|
|
|
102,182,841
|
|
|
|
102,182,841
|
|
The attached notes are part of these consolidated statements.
Grupo TMM, S.A.B. and Subsidiaries
|
6
|
Consolidated statements of comprehensive income
For the years ended December 31, 2020, 2019 and 2018
(Amounts in thousands of pesos)
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) profit for the year
|
|
$
|
(403,156
|
)
|
|
$
|
31,292
|
|
|
$
|
23,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be subsequently reclassified to profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains, net (Note 23)
|
|
|
10,953
|
|
|
|
2,354
|
|
|
|
15,430
|
|
Revaluation surplus (Note 25)
|
|
|
314,436
|
|
|
|
379,420
|
|
|
|
(161,411
|
)
|
Income tax on other comprehensive income
|
|
|
(97,617
|
)
|
|
|
(114,532
|
)
|
|
|
43,794
|
|
Total of other comprehensive income (loss) for the year
|
|
|
227,772
|
|
|
|
267,242
|
|
|
|
(102,187
|
)
|
Comprehensive (loss) income for the year
|
|
$
|
(175,384
|
)
|
|
$
|
298,534
|
|
|
$
|
(78,638
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
(5,025
|
)
|
|
|
(772
|
)
|
|
|
4,543
|
|
Controlling interest
|
|
|
(170,359
|
)
|
|
|
299,306
|
|
|
|
(83,181
|
)
|
|
|
$
|
(175,384
|
)
|
|
$
|
298,534
|
|
|
$
|
(78,638
|
)
|
The attached notes are part of these consolidated statements.
Grupo TMM, S.A.B. and Subsidiaries
|
7
|
Consolidated statements of changes in stockholders’ equity
For the years ended December 31, 2020, 2019 and 2018
(Amounts in thousands of pesos, except number of shares)
|
|
Number of
outstanding
common shares
|
|
|
Share
capital
|
|
|
Treasury
shares
|
|
|
Mandatory
convertible
debentures
into shares
|
|
|
Accumulated
losses
|
|
|
Other
components
of equity
|
|
|
Subtotal
|
|
|
Non
controlling
interest
|
|
|
Total
stockholders’
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances as at December 31, 2017
|
|
|
102,182,841
|
|
|
$
|
2,216,733
|
|
|
$
|
(46,805
|
)
|
|
$
|
-
|
|
|
$
|
(859,159
|
)
|
|
$
|
849,466
|
|
|
$
|
2,160,235
|
|
|
$
|
68,827
|
|
|
$
|
2,229,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,006
|
|
|
|
-
|
|
|
|
19,006
|
|
|
|
4,543
|
|
|
|
23,549
|
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40,335
|
|
|
|
(142,522
|
)
|
|
|
(102,187
|
)
|
|
|
-
|
|
|
|
(102,187
|
)
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(83,181
|
)
|
|
|
4,543
|
|
|
|
(78,638
|
)
|
Dividends paid to non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(26,166
|
)
|
|
|
(26,166
|
)
|
Balances as at December 31, 2018
|
|
|
102,182,841
|
|
|
|
2,216,733
|
|
|
|
(46,805
|
)
|
|
|
-
|
|
|
|
(799,818
|
)
|
|
|
706,944
|
|
|
|
2,077,054
|
|
|
|
47,204
|
|
|
|
2,124,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net profit for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
32,064
|
|
|
|
-
|
|
|
|
32,064
|
|
|
|
(772
|
)
|
|
|
31,292
|
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
202,228
|
|
|
|
65,014
|
|
|
|
267,242
|
|
|
|
-
|
|
|
|
267,242
|
|
Comprehensive loss for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
299,306
|
|
|
|
(772
|
)
|
|
|
298,534
|
|
Balances as at December 31, 2019
|
|
|
102,182,841
|
|
|
|
2,216,733
|
|
|
|
(46,805
|
)
|
|
|
-
|
|
|
|
(565,526
|
)
|
|
|
771,958
|
|
|
|
2,376,360
|
|
|
|
46,432
|
|
|
|
2,422,792
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the year
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(398,131
|
)
|
|
|
-
|
|
|
|
(398,131
|
)
|
|
|
(5,025
|
)
|
|
|
(403,156
|
)
|
Other comprehensive income
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
55
|
|
|
|
227,717
|
|
|
|
227,772
|
|
|
|
-
|
|
|
|
227,772
|
|
Comprehensive loss for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(170,359
|
)
|
|
|
(5,025
|
)
|
|
|
(175,384
|
)
|
Balances as at December 31, 2020
|
|
|
102,182,841
|
|
|
$
|
2,216,733
|
|
|
$
|
(46,805
|
)
|
|
$
|
-
|
|
|
$
|
(963,602
|
)
|
|
$
|
999,675
|
|
|
$
|
2,206,001
|
|
|
$
|
41,407
|
|
|
$
|
2,247,408
|
|
The attached notes are part of these consolidated statements.
Grupo TMM, S.A.B. and Subsidiaries
|
8
|
Consolidated statements of cash flow
For the years ended December 31, 2020, 2019 and 2018
(Amounts in thousands of pesos)
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit before taxes
|
|
$
|
(422,490
|
)
|
|
$
|
95,867
|
|
|
$
|
28,348
|
|
Adjustments to reconcile the profit with cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, amortization and loss from revaluation
|
|
|
141,051
|
|
|
|
182,880
|
|
|
|
80,277
|
|
Other amortizations
|
|
|
20,140
|
|
|
|
1,679
|
|
|
|
5,259
|
|
(Gain) loss from the sale of property, vessels and equipment, net
|
|
|
(153
|
)
|
|
|
(23,415
|
)
|
|
|
1,849
|
|
Accrued interests
|
|
|
72,093
|
|
|
|
140,021
|
|
|
|
80,580
|
|
Interest income
|
|
|
(7,097
|
)
|
|
|
(5,100
|
)
|
|
|
(9,137
|
)
|
Exchange (loss) gain, net
|
|
|
43,873
|
|
|
|
(26,411
|
)
|
|
|
(8,312
|
)
|
Gain from the sale of subsidiaries
|
|
|
(451
|
)
|
|
|
(279,744
|
)
|
|
|
(111,484
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(80,333
|
)
|
|
|
(95,847
|
)
|
|
|
2,454
|
|
Other accounts receivable and related parties
|
|
|
162,437
|
|
|
|
45,287
|
|
|
|
(98,394
|
)
|
Materials and supplies
|
|
|
7,111
|
|
|
|
(4,343
|
)
|
|
|
1,440
|
|
Prepayments
|
|
|
(9,769
|
)
|
|
|
2,177
|
|
|
|
(13,346
|
)
|
Other accounts payable and accrued expenses
|
|
|
(145,729
|
)
|
|
|
(46,638
|
)
|
|
|
117,065
|
|
Other non-current assets
|
|
|
4,702
|
|
|
|
4,981
|
|
|
|
(22,685
|
)
|
Employee benefits
|
|
|
2,002
|
|
|
|
(25,125
|
)
|
|
|
1,046
|
|
Total adjustments
|
|
|
209,877
|
|
|
|
(129,598
|
)
|
|
|
26,612
|
|
Cash (used in) from operating activities
|
|
|
(212,613
|
)
|
|
|
(33,731
|
)
|
|
|
54,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from investment activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sale of property, vessels and equipment
|
|
|
614
|
|
|
|
16,233
|
|
|
|
169,627
|
|
Acquisition of property, vessels and equipment
|
|
|
(28,375
|
)
|
|
|
(48,281
|
)
|
|
|
(86,283
|
)
|
Sale of subsidiaries, net
|
|
|
33,985
|
|
|
|
600,887
|
|
|
|
50,331
|
|
Dividends paid to non-controlling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
(26,166
|
)
|
Interest charged
|
|
|
7,097
|
|
|
|
5,100
|
|
|
|
9,137
|
|
Cash from investment activities
|
|
|
13,321
|
|
|
|
573,939
|
|
|
|
116,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from debt
|
|
|
31,419
|
|
|
|
29,590
|
|
|
|
124,010
|
|
Repayment of debt
|
|
|
(123,703
|
)
|
|
|
(189,026
|
)
|
|
|
(397,458
|
)
|
Repayment of leases
|
|
|
(90,432
|
)
|
|
|
(134,245
|
)
|
|
|
-
|
|
Interest paid
|
|
|
(22,712
|
)
|
|
|
(42,510
|
)
|
|
|
(40,792
|
)
|
Cash used in financing activities
|
|
|
(205,428
|
)
|
|
|
(336,191
|
)
|
|
|
(314,240
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exchange effect on cash
|
|
|
33,316
|
|
|
|
(6,145
|
)
|
|
|
(607
|
)
|
(Decrease) increase in cash and cash equivalents
|
|
|
(371,404
|
)
|
|
|
197,872
|
|
|
|
(143,241
|
)
|
Cash and cash equivalents, beginning of year
|
|
|
476,714
|
|
|
|
278,842
|
|
|
|
422,083
|
|
Cash and cash equivalents, end of year
|
|
$
|
105,310
|
|
|
$
|
476,714
|
|
|
$
|
278,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplementary information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
|
|
$
|
10,873
|
|
|
$
|
14,512
|
|
|
$
|
4,799
|
|
The attached notes are part of these consolidated statements.
Grupo TMM, S.A.B. and Subsidiaries
|
9
|
Notes to the consolidated financial statements
December 31, 2020 and 2019
(Amounts in thousands of pesos, except number of shares and where otherwise indicated)
Principal activity
Grupo TMM, S.A.B. (‘Grupo TMM’ or the ‘Company’) is a Mexican company whose principal activity is providing multimodal transport and logistics services to premium customers throughout Mexico.
The Company’s activities are grouped into the following service divisions:
|
•
|
Maritime: includes specialized offshore shipping services, clean oil, and chemical products shipping, tugboat services, bulk carrier and other activities related to the maritime
transportation business.
|
|
•
|
Ports and terminals: include shipping agency services, inland and seaport terminal services.
|
|
•
|
Logistics: includes the operations of logistics solutions services and container and railcar maintenance and repair services.
|
|
•
|
Warehousing: includes bonded warehouse operations and management.
|
On March 11, 2020, the WHO declared COVID-19 to be a pandemic. In response, governments throughout the world, including Mexico, have implemented various extraordinary measures to control its spread, including travel restrictions,
quarantines, and the suspension of non-essential activities. The effect of the COVID-19 pandemic on the Company’s business continues to be uncertain, and it will depend on its duration and its impact on the Mexican and global economies.
However, as of the date of these financial statements, various international banks and multilateral institutions such as the International Monetary Fund have assessed that the COVID-19 pandemic resulted in the worst global economic
recession since the Great Depression.
Grupo TMM, S.A.B. and Subsidiaries
|
10
|
For fiscal 2020, the Company’s revenues, particularly in the Ports and Terminals segment, have decreased due to the COVID-19 pandemic, and the various emergency public health measures implemented by governments to combat it. Although the
Company expects its revenues to improve as these extraordinary measures are lifted and public health emergency restrictions are removed, as of the date of these consolidated financial statements, the Company cannot quantify the adverse
effect that COVID-19 will have on its operating profit for fiscal 2021.
In view of the foregoing and other conditions beyond the control of the Company, operating profit can be volatile and subject to change rapidly as the situation of COVID-19 develops. Consequently, the Company has taken various measures
to maintain business continuity and strengthen its financial position, including the deferment of payments to suppliers and creditors, maintenance of its early collection program to help offset the effect of delays in payments from
customers, as well as different actions to reduce general expenses. As part of these efforts, the Company decided to relocate its corporate headquarters, which will generate significant savings in corporate costs. The Company continues to
comply with the health and safety protocols established by the Mexican government, and it has taken measures and implemented policies to safeguard the threats posed by the COVID-19 pandemic, its businesses, employees, and the locations in
which it operates. These steps include, among other things, active cleaning and disinfection of open public areas, the implementation of a sophisticated videoconference platform and collaborative remote work, as well as the reinforcing of
information security protocols, which have allowed employees to be able to continue to participate in the full scope of Company activities from any location, so as to guarantee operating continuity without placing the health of employees at
risk. In addition, the Company has continued to provide health benefits to employees on a temporary leave of absence until the end of the pandemic. In the future, the Company will continue to monitor the development of the COVID-19
pandemic closely, including its effect on the Company’s businesses, financial condition, and operating profit.
To limit the spread of COVID-19, the Mexican government has imposed various safety measures, including the suspension of all non-essential activities. In view of these conditions, the Company has taken various actions to protect its
facilities and employees, strengthen the business, and promote its financial recovery. The Company maintains limited access to its facilities, has implemented additional cleaning and disinfection measures, allows employees to work remotely
where possible and has implemented new controls for emergency procedures and to mitigate potential cybersecurity risks. Although these actions have helped to maintain business continuity, they can limit the efficiency of Company operations,
including reports and internal controls. At this time, the severity of the global economic recession expected to arise from the COVID-19 pandemic is uncertain; therefore, Management continues to monitor the material impact of the pandemic
on operating income and the financial position of the Company.
As part of Company’s effort to mitigate the effects of the pandemic, it has done the following:
|
•
|
continued with its strategic plan to offset part of the instability in the oil industry and the recent COVID-19 pandemic by: (a) reducing costs and general and administrative expenses; (ii) maintaining its early collection
program (the “supply chain program”) through Nacional Financiera, SNC, therby reducing liquidity risk and the effect of delays in the payments that can result from recent changes in the payment policies of PEMEX; and (iii)
diversifying its customer base; and (iv) negotiating payment deferments and extensions of the maturity date of certain financial commitments;
|
Grupo TMM, S.A.B. and Subsidiaries
|
11
|
|
•
|
adopted various measures to help guarantee that financial and audit reporting processes continue to be sound, and as timely as possible in the middle of the global crisis of the COVID-19 pandemic, including, among other things,
implementing: (i) new controls for emergency procedures; (ii) close monitoring of IT access controls to enable remote work to be performed; (iii) controls for mitigating the possible increase in cyber risks arising from a higher
level of remote work; (iv) alternative controls appropriately designed to offset the lack of information that may arise where it is not possible to conduct face-to-face controls; and (v) an alternative audit plan to test the
operating effectiveness of controls remotely, due to travel restrictions; and
|
|
•
|
expanded its customer base in each of its businesses, thereby strengthening the position of the Company on the market and successfully achieving better operating margins.
|
The business strategy of the Company, which will help to mitigate the effects of the COVID-19 pandemic, is focused mainly on the following:
Expansion and improvement of maritime operations
The Energy Reform has the potential to increase exploration activities and hydrocarbon production in Mexico, both with PEMEX and with other participants of the industry (domestic and international). To maximize opportunities created by
this reform and considering the protection of the Mexican Navigation Law (Mexican flag vessels to carry out cabotage transportation in Mexican waters), the maritime business is focused on consolidating and expanding its operations by: i)
increasing cabotage services with medium and long-term contacts; ii) satisfying the growing demand for distribution and exploration services in Mexico and abroad, by meeting the requirements of the new generation of vessels with greater
deep water capacities; iii) increasing the current capacity of repair services in the shipyard to more than 30 ships per year, and it is expected to have shipbuilding capacity in the long-term, which will enable the Company to compete to
satisfy the demand for current and future ship customers.
Expansion of port and terminal operations
Tuxpan is the closest port to Mexico City and the states of central Mexico, which represent more than 50% of the GDP of Mexico, and it is the major port for importing gasoline and diesel, which represent more than 70% of domestic
consumption.
In view of the opportunities offered by the Energy Reform for increased imports of gasoline and diesel and the strategic location of the Company’s land in Tuxpan, in August 2016 the Company announced a strategic association with
TransCanada and Sierra Oil & Gas to develop new infrastructure for storage, transportation, and distribution of refined petroleum products from Tuxpan, Veracruz to the center of the country. In February 2019, the Company agreed to
acquire from Sierra Oil & Gas its 50% stake in the Optimus company, for the amount of $2.6 million dollars, resulting in Optimus becoming a 100% subsidiary company of the Company and giving the Company full responsibility for the
development of the project.
To take advantage of the growth potential of this market, the Company continues with efforts to develop this and other port facilities and storage terminals to satisfy the future demand of imports of gasoline and diesel.
In addition, the Company retains a significant part of the land in Tuxpan where it intends to develop projects related to that region, such as a general cargo terminal.
Grupo TMM, S.A.B. and Subsidiaries
|
12
|
Expansion of logistics operations
The Company takes advantage of experience and knowledge of Mexico and its laws, customer relationships, and its skills in human resource management and unions to expand the business with the automotive industry and, in general all
activities related to shipyards and storage management, with an emphasis on “just-in-time” inventory management, storage, sub-assemblies, and yard management.
Improving warehousing operations
The Company continues to work to improve bonded warehouse service, as well as the import tariff service. In addition, it continues to focus on growth through rendering a comprehensive logistics service to its customers, which range from
bonded warehouse services, inventory management, added value services, and delivery to the end customer.
Structure of Grupo TMM
At December 31, 2020 and 2019, Grupo TMM holds the percentage of equity interest in various subsidiaries, the most significant are as follows:
|
|
% of ownership
|
|
|
|
2020
|
|
|
2019
|
|
Specialized maritime
|
|
|
|
|
|
|
Transportación Marítima Mexicana, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Inmobiliaria Dos Naciones, S. de R.L. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
TMM Parcel Tankers, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
Logistics
|
|
|
|
|
|
|
|
|
Almacenadora de Depósito Moderno, S.A. de C.V. (Warehouse)
|
|
|
100
|
%
|
|
|
100
|
%
|
Autotransportación y Distribución Logística, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
TMM Almacenadora, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
Ports and terminals
|
|
|
|
|
|
|
|
|
TMM Logistics, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Prestadora de Servicios MTR, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Bimonte, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Administradora Marítima TMM, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Caoba Energía, S. de R.L. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Services & Solutions Optimus, S. de R.L de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Servicios Administrativos API Acapulco, S.A. de C.V.
|
|
|
51
|
%
|
|
|
51
|
%
|
Administración Portuaria Integral de Acapulco, S.A. de C.V.
|
|
|
51
|
%
|
|
|
51
|
%
|
|
|
|
|
|
|
|
|
|
Payroll outsourcing
|
|
|
|
|
|
|
|
|
Mexschiff Operación de Personal, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Omexmar Operadora Mexicana Marítima, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Perhafen Services Marítimos, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
TMM Dirección Corporativa, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
Perjomar Operadora, S.A.P.I. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
Property leasing
|
|
|
|
|
|
|
|
|
Inmobiliaria TMM, S.A. de C.V.
|
|
|
100
|
%
|
|
|
100
|
%
|
The Company’s subsidiaries are incorporated in Mexico, where most of their activities take place.
Grupo TMM, S.A.B. and Subsidiaries
|
13
|
Non-controlling interest in subsidiaries
Grupo TMM holds an equity interest in the subsidiaries Administración Portuaria Integral de Acapulco, S.A. de C.V. and Servicios Administrativos API Acapulco, S.A. de C.V., for which there is non-controlling interest; the associated
effect on the Company’s consolidated financial statements is considered immaterial. These companies are established and conduct their activities in Mexico.
Investments in associates
The Company maintains investments in the following associates:
|
(a)
|
In July 2014, Grupo TMM contributed $40,000 to the capital stock of Almacenes de Jugos Citricos de Mexico, S.A.P.I. de C.V., which represents 21% of the voting shares. Since this entity has not started up operations as of the
issue date of the consolidated financial statements, Company Management decided to reserve the investment in its entirety.
|
|
(b)
|
The Company lost control of its subsidiary TMM División Marítima, S.A. de C.V. (TMM DM) in 2017, retaining 15% equity in its capital without exerting significant influence. Accordingly, this investment has been classified as an
investment in associate. As of December 31, 2020 and 2019, the value of this investment is nil, since the stockholders’ equity of TMM DM is negative. Moreover, in accordance with the statutes of TMM DM, the stockholders only assume
obligation in connection with their equity up to the amount thereof.
|
2
|
General information and statement of compliance with IFRS
|
Grupo TMM’s head office is located at Paseo de la Reforma N° 296 piso 19, Colonia Juárez, Alcaldía Cuauhtémoc, C.P. 06600, Mexico City. In addition, a significant portion of its maritime division activities is conducted at Calle 55 N° 2
Col. Electricistas C.P. 24120 Cd. del Carmen, Campeche.
Grupo TMM’s shares are listed on the Mexican Stock Exchange, where they trade under the symbol TMM A. In the United States, Grupo TMM’s shares trade on the “Over-the-Counter’ (‘OTC’) market in the form of American Depositary Shares
(‘ADSs’) under the symbol GTMAY.
Grupo TMM and its subsidiaries prepare their consolidated financial statements in accordance with International Financial Reporting Standards (‘IFRS’), as issued by the International Accounting Standards Board (‘IASB’), and these are
presented in thousands of Mexican pesos. They have been prepared under the assumption that Grupo TMM operates on a going concern basis.
Grupo TMM, S.A.B. and Subsidiaries
|
14
|
The Company has decided to present in its consolidated statements of income a subtotal of ‘Operating income’ which reconciles with the ‘Net profit for the year’ considering the items of ‘Comprehensive financing cost’ and ‘Income tax
expense’; with regard to the subtotal of ‘Transportation loss’, the latter reconciles with the ‘Operating income’ considering the item ‘Other (expenses) income’.
3
|
Changes in accounting policies
|
New Standards adopted as of January 1, 2020
Some accounting pronouncements which have become effective from 1 January 2020 and have therefore been adopted do not have a significant impact on the Company’s financial results or position.
Other Standards and amendments that are effective for the first time in 2020 and could be applicable to the Company are:
|
•
|
Definition of a Business (Amendments to IFRS 3)
|
|
•
|
Definition of Material (Amendments to IAS 1 and IAS 8)
|
|
•
|
Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)
|
|
•
|
Amendments to Refences to the Conceptual Framework (Various Standards)
|
|
•
|
COVID-19 Rent Related Concessions (Amendments to IFRS 16)
|
These amendments do not have a significant impact on these financial statements and therefore the disclosures have not been made.
Standards, amendments and Interpretations to existing Standards that are not yet effective and have not been adopted early by the Company
At the date of authorization of these consolidated financial statements, several new, but not yet effective Standards, amendments to existing Standards, and Interpretations have been published by the IASB, none of which have been adopted
in advance by Grupo TMM.
Other new standards and amendments that are not yet effective and have not been adopted early by the Company include:
|
•
|
References to the Conceptual Framework
|
|
•
|
Annual Improvements to IFRS Standards 2018-2020 Cycle (Amendments to IFRS 1, IFRS 9, IFRS 16, IAS 41)
|
|
•
|
Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
|
These amendments are not expected to have a significant impact on the financial statements in the period of initial application and therefore the disclosures have not been made.
Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year
have been disclosed as they are not expected to have a material impact on the Company’s consolidated financial statements.
Grupo TMM, S.A.B. and Subsidiaries
|
15
|
4
|
Summary of significant accounting policies
|
The most significant accounting policies are summarized as follows:
The Company’s financial statements have been prepared on an accrual basis and under the historical cost convention except for the revaluation of vessels and properties. Monetary amounts are expressed in Mexican pesos and are rounded to
the nearest thousands, except for earnings per share.
4.2
|
Basis of consolidation
|
The consolidated financial statements include the accounts of Grupo TMM and those of its subsidiaries. Grupo TMM controls a subsidiary when it is exposed, or has rights, to variable returns resulting from its involvement with the
subsidiary and has the ability to affect those returns through its power over the subsidiary. All subsidiaries have the reporting date of “December 31”, for all years reported.
The balances and transactions among subsidiaries have been eliminated for the purposes of consolidation, including balances and unrealized gains on transactions between Grupo TMM’s companies. Unrealized losses on the sale of assets among
the Company are eliminated in the consolidation and the asset involved is also reviewed for impairment from a group perspective. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies
adopted by Grupo TMM.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed during the year are recognized from the effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interest, presented as part of the stockholders’ equity, represents the portion of the subsidiary’s profit or loss and net assets that are not held by Grupo TMM. The Company attributes the total comprehensive income or
loss of the subsidiaries between the owners of the parent and the non-controlling interest based on their respective ownership interests.
Associates and joint ventures
Associates are all entities over which Grupo TMM has significant influence but not control. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement having rights to the net assets of the
arrangement.
Investments in associates and joint ventures are accounted by the equity method and are initially recognized at their acquisition cost.
The carrying amount of investments in associates and joint ventures is increased or decreased to recognize Grupo TMM’s share of the profit or loss and other comprehensive income of the associate and joint venture, adjusted where
necessary to ensure consistency with the accounting policies of the Company.
Unrealized gains on transactions between Grupo TMM and its associates and joint ventures are eliminated to the extent of the Company’s interest on those entities. When unrealized losses are eliminated, the
asset involved is also tested for impairment.
Grupo TMM, S.A.B. and Subsidiaries
|
16
|
4.3
|
Business combinations
|
Grupo TMM applies the acquisition method to accounting for business combinations. The consideration transferred by Grupo TMM to obtain control of a subsidiary is calculated as the sum of the fair values on the acquisition-date of the
assets transferred, liabilities incurred, and the equity interests issued by Grupo TMM, which includes, accordingly, the fair value of any asset or liability that arises from the contingent consideration arrangement. Acquisition costs are
expensed as incurred.
Grupo TMM recognizes identifiable assets acquired and liabilities assumed in the business combination independent of whether these were recognized in acquirer’s financial statements prior to the acquisition. Assets acquired and
liabilities assumed are generally measured at their acquisition-date fair value.
Goodwill is stated after the individual recognition of identifiable intangible assets. It is calculated as the excess of the sum of : a) the fair value of the consideration transferred, b) the amount recognized for any non-controlling
interest in the entity acquired, and c) the fair value on the acquisition date of any equity interest in the acquire, over the acquisition-date the fair values of the identifiable net assets. If the fair values of the identifiable net
assets exceed the sum calculated above, this excess amount (e.g. gain on a bargain purchase) is immediately recognized in profit or loss.
4.4
|
Foreign currency translation
|
Functional and presentation currency
The consolidated financial statements are reported in Mexican pesos, which is also the functional currency of Grupo TMM.
Foreign currency balances and transactions
Foreign currency transactions are translated into the functional currency of the respective Company entity, using the exchange rates prevailing at the dates of the transactions (spot exchange rate). Foreign exchange gains and losses
resulting from the settlement of such transactions and from the measurement of monetary items denominated in foreign currency at year-end exchange rates are recognized in profit or loss.
Non-monetary items are not retranslated at year-end and are measured at historical cost (translated using the exchange rates at the transaction date), except for non-monetary items measured at fair value which are translated using the
exchange rates at the date when fair value was determined.
4.5
|
Cash and cash equivalents
|
Cash and cash equivalents comprise cash on hand and demand deposits, together with other highly liquid and short-term investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of
change in their value.
4.6
|
Materials and supplies
|
Materials and supplies, consisting mainly of fuel and items for the maintenance of property, vessels and equipment, are valued at the lower of the average cost and the net realizable value.
Grupo TMM, S.A.B. and Subsidiaries
|
17
|
Represent prepayments for services that will be received in the future and are amortized in the period when said services are received.
4.8
|
Property, vessels and equipment
|
Properties and vessels
The properties (land and buildings) are measured at fair value, which are determined by external professional valuers every three years or before if the market factors indicate a significant change in the fair value. The last valuation
of these assets was in December 2019.
The vessels are measured at fair value and as of December 31, 2020 and 2019, the revalued amounts were determined using the revenue technique (expected future cash flows). The frequency of the revaluations for this class of assets will
be based on the changes of the fair values, meaning when these values significantly differ from their carrying value. The Company has revaluated this class of assets as of December 31, 2020 and 2019.
The revaluation surplus that is derived from the valuation of properties and vessels is recognized as part of ‘Other comprehensive income items’ and forms part of ‘other capital components’ in stockholders’ investment. A revaluation
surplus is credited to income up to an amount equivalent to any revaluation write-down or impairment loss previously recognized income. Any excess is recognized in ‘Other comprehensive income items’ and in stockholders’ equity in the item
of ‘Revaluation surplus’. Revaluation write-downs or impairment losses are recognized in ‘Other comprehensive income items’ up to the amount previously recognized on that asset in stockholders’ equity in the item of ‘Revaluation surplus’.
Any remaining decrease is recognized in income for the year. Any remaining balance of the revaluation surplus in stockholders’ equity at the time of disposing of the asset that gave rise thereto is reclassified to retained earnings.
Moreover, any remaining balance of the revaluation surplus in stockholders’ equity may not be distributed to stockholders.
The depreciation of properties and vessels is recognized using the straight-line method to write down its carrying value less its estimated residual value. As no finite useful life for land can be determined, the related carrying amounts
are not depreciated.
Equipment
Equipment is stated at construction or acquisition cost, including any cost directly attributable to bringing the assets to the location and condition necessary for them to be capable of operating in the manner intended by Grupo TMM’s
Management. Acquisitions through capital leases or charter arrangements with an obligation to purchase are capitalized based on the present value of future minimum payments, recognizing the related liability. Depreciation of equipment is
computed using the straight-line method based on the useful lives of the assets net of the estimated residual value.
Recurring maintenance and repair expenditures are charged to operating expenses as incurred. Major repairs to vessels (docks) are capitalized and amortized over the period in which benefits are expected to be received (two to five years
for vessels). The material residual values and the estimated useful life are adjusted as necessary, at least once a year.
Grupo TMM, S.A.B. and Subsidiaries
|
18
|
Gains or losses from the disposal of property, vessels and equipment are determined as differences between the disposal proceeds and the carrying amount of the assets and are recognized in profit or loss as part of ‘Other (expenses)
income’, accordingly (see Note 19).
Construction in progress
Disbursements attributable to construction of assets that are identifiable and may be controlled by the Company are recognized as assets when they meet the following conditions:
|
•
|
it is technically possible to complete the construction of the asset so that it can be available to be used;
|
|
•
|
management has the intent of completing the asset to use it;
|
|
•
|
it can be proven that the asset will generate economic benefits in the future;
|
|
•
|
adequate technical, financial or another type of resources are available to complete the asset; and
|
|
•
|
the disbursement attributable to the asset during its construction can be determined reliably.
|
The Company as lessee
The Company makes the use of leasing arrangements principally of warehouse, courtyards, corporate building and cranes. The rental contracts for facilities are typically negotiated for terms of between 1 and 9 years and some of these have
extension terms. Lease terms for cranes have lease terms of between 1 and 2 years without any extension terms. The Company does not enter into sale and leaseback arrangements. All the leases are negotiated on an individual basis and contain
a wide variety of different terms and conditions.
The Company assesses whether a contract is or contains a lease at inception of the contract. A lease conveys the right to direct the use and obtain substantially all of the economic benefits of an identified asset for a period of time in
exchange for consideration.
Some lease contracts contain both lease and non-lease components. These non-lease components are usually associated with facilities management services. The Company has elected to separate their lease and non-lease components based on
their relative stand-alone prices.
Measurement and recognition of leases as a lessee
At lease commencement date, the Company recognizes a right-of-use asset and a lease liability in its consolidated statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial measurement of
the lease liability.
The Company depreciates the right-of-use asset on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Company also assesses the
right-of-use asset for impairment when such indicators exist.
At the commencement date, the Company measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the Company’s incremental borrowing rate on the date of the revaluation when the implicit
lease rate cannot be easily determined.
Grupo TMM, S.A.B. and Subsidiaries
|
19
|
Lease payments included in the measurement of the lease liability are made up of fixed payments and variable payments based on an index or rate.
Subsequent to initial measurement, the liability will be reduced by lease payments that are allocated between repayments of principal and finance costs. The finance cost is the amount that produces a constant periodic rate of interest on
the remaining balance of the lease liability.
The lease liability is reassessed when there is a change in the lease payments. Changes in lease payments arising from a change in the lease term. The revised lease payments are discounted using the Company’s incremental borrowing rate
at the date of reassessment when the rate implicit in the lease cannot be readily determined. The amount of the remeasurement of the lease liability is reflected as an adjustment to the carrying amount of the right-of-use asset.
Payments under leases can also change when change through an index or a rate used to determine those payments. The lease liability is remeasured only when the adjustment to lease payments takes effect and the revised contractual payments
for the remainder of the lease term are discounted using an unchanged discount rate.
The remeasurement of the lease liability is dealt with by a reduction in the carrying amount of the right-of-use asset to reflect the full or partial termination of the lease for lease modifications that reduce the scope of the lease.
Any gain or loss relating to the partial or full termination of the lease is recognized in profit or loss. The right-of-use asset is adjusted for all other lease modifications.
The Company has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of recognizing a right-of-use asset and lease liability, the payments in relation to these are recognized as
an expense in profit or loss on a straight-line basis over the lease term.
The Company as lessor
As a lessor the Company classifies its leases as either operating or finance leases.
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset and classified as an operating lease if it does not.
Recognition of intangible assets
Concession rights
Concession rights correspond to payments made for the rights to operate assets under concession, which are stated at cost and are amortized over the terms specified in the corresponding agreements.
Software
Software licenses acquired are capitalized on the basis of costs incurred to acquire and install the specific software.
Grupo TMM, S.A.B. and Subsidiaries
|
20
|
Trademark
The trademark acquired in a business combination that qualifies for separate recognition is considered an intangible asset and is recorded at its fair value.
Subsequent measuring
All finite-lived intangible assets are accounted for using the cost model by which the net capitalized costs of their residual value are amortized using the straight-line method throughout their estimated useful lives, in the case of the
concession rights; these are amortized according to the term specified in the corresponding agreement. The residual values and useful lives are reviewed at each reporting date. The trademark is considered an intangible asset with an
indefinite life; therefore, it is subject to impairment tests annually as described in Note 13.
The amortization is included in the consolidated statement of operations as part of the depreciation, amortization, and loss on revaluation item. Subsequent expenditures to preserve software and trademarks are expensed as incurred.
4.11
|
Impairment testing of long-lived assets
|
For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested
at cash-generating unit level.
Trademark is allocated to those cash-generating units that are expected to benefit from synergies of a related business combination and represent the lowest level within the Company at which management monitors the trademark.
Cash-generating units to which trademark has been allocated (determined by the Grupo TMM’s Management as equivalent to its operating segments) are tested for impairment at least annually. All other individual assets or cash-generating
units are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the asset’s (or cash-generating unit’s) carrying amount exceeds its recoverable amount, which is the higher of fair value less costs of disposal and value-in-use. To determine the
value-in-use, management estimates expected future cash flows from each cash-generating unit and determines a suitable discount rate in order to calculate the present value of those cash flows.
The data used for impairment testing procedures are directly linked to the Grupo TMM’s latest approved budget, adjusted as necessary to exclude the effects of future reorganizations and asset enhancements. Discount factors are determined
individually for each cash-generating unit and reflect current market assessments of the time value of money and asset-specific risk factors.
Impairment losses for cash-generating units reduce first the carrying amount of any goodwill allocated to that cash-generating unit. Any remaining impairment loss is charged pro rata to the other assets in the cash-generating unit.
Grupo TMM, S.A.B. and Subsidiaries
|
21
|
With the exception of the trademark, all assets are subsequently reassessed for indications that an impairment loss previously recognized may no longer exist. An impairment loss is reversed if the asset’s or cash-generating unit’s
recoverable amount exceeds its carrying amount.
4.12
|
Financial instruments
|
Recognition and derecognition
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the financial instrument.
Financial assets are derecognized when the contractual rights to the cash flow from a financial asset expire, or when the financial asset and all the substantial risks and benefits have been transferred. A financial liability is
derecognized as extinguished, discharged, canceled, or expired.
Classification and initial measurement of financial assets
Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value, adjusted by
transaction costs (where applicable).
Financial assets are classified into the following categories:
|
•
|
fair value through profit or loss (FVTPL)
|
|
•
|
fair value through other comprehensive income (FVOCI).
|
In the periods presented the Company does not have any financial assets categorized as FVTPL or FVOCI.
The classification is determined by both:
|
•
|
the Company’s business model for managing the financial asset; and
|
|
•
|
the contractual cash flow characteristics of the financial asset.
|
All income and expenses relating to financial assets that are recognized in profit or loss are presented within financial costs and income; except for impairment of trade receivables which is presented in the heading of ‘Other costs and
expenses’.
Subsequent measurement of financial assets
Financial assets at amortized cost
Financial assets are measured at amortized cost if the assets meet the following conditions:
|
•
|
they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and
|
|
•
|
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.
|
Grupo TMM, S.A.B. and Subsidiaries
|
22
|
After initial recognition, these are measured at amortized cost using the effective interest method. The financial assets of the Company are not discounted since it is not material. The Company’s cash and cash equivalents, trade
receivables and part of the other accounts receivable fall into this category of financial instruments.
Impairment of financial assets
IFRS 9’s impairment requirements use more forward-looking information to recognize expected credit losses – the ‘expected credit loss (ECL) model’. Instruments within the scope of the new requirements
included mainly trade receivables, contract assets recognized and measured under IFRS 15, other accounts receivables and accounts receivable from related parties.
Recognition of credit losses considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable
forecasts that affect the expected collectability of the future cash flows of the instrument.
Grupo TMM makes use of a simplified approach in accounting for trade and other accounts receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in
contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Company uses its historical experience, external indicators and forward-looking information to
calculate the expected credit losses using a provision matrix.
The Company assess impairment of trade receivables based on the characteristics of the business segment, when appropriate this assessment is made on a collective basis as they possess shared credit risk characteristics, they have been
grouped based on the days past due. Refer to Note 26, for a detailed analysis of how the impairment requirements of IFRS 9 are applied.
Classification and measurement of financial liabilities
The Company’s financial liabilities include borrowings, trade and other payables. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs. Subsequently, financial liabilities are
measured at amortized cost using the effective interest method.
All interest-related charges are included within finance costs or finance income.
4.13
|
Provisions, contingent liabilities and contingent assets
|
Provisions are recognized when the present obligations resulting from a past event will probably lead to an outflow of the Company economic resources and the amounts can be reliably estimated. Timing or amount of the outflow may still be
uncertain. A present obligation arises from a presence of a legal or constructive commitment that has resulted from past events. Provisions are not recognized for future operating losses.
Provisions are the estimated amounts required to be expended to settle the present obligation based on the most reliable evidence available at the date of the consolidated financial statements, including the risks and uncertainties
associated with the present obligation. Provisions are discounted at their present value, where the time value of money is material.
Grupo TMM, S.A.B. and Subsidiaries
|
23
|
All provisions are reviewed on the issuance of the financial statements and adjusted to reflect the current best estimate. When an outflow of economic resources for present obligations is not probable, this is not recognized as a
liability, unless it was assumed in the course of a business combination. Such cases are disclosed as contingent liabilities unless the outflow of resources is remote.
Possible inflows of the Company’s economic benefits, which do not yet meet the criteria for recognition of an asset, are considered as contingent assets.
Calculation of current income tax is based on tax rates and tax laws that have been enacted or substantially enacted to the reporting date of the consolidated financial statements.
Deferred income tax is determined using the liability method, based on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements. Determination of deferred income
tax has considered tax rates that will be effective at the time of reversion of the temporary differences.
The income tax expense in the statement of profit or loss includes the sum of the deferred tax, which has not been recognized in other comprehensive income or directly in stockholders’ equity, and the current income tax for the year.
Deferred tax assets are recognized to the extent that it is probable that future taxable profit against which temporary differences can be utilized will be available (see Note 21).
This is assessed based on the Company’s forecast of future operating results, adjusted for significant items that are reconciled for the taxable income and the limits on the use of tax losses and other tax asset carryforwards.
Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary
difference will not reverse in the foreseeable future.
4.15
|
Statutory employee profit sharing
|
The statutory employee profit sharing is determined applying the rate of 10% on taxable income, adjusted as provided for by the Income Tax Law. The statutory employee profit sharing accrued is considered an ordinary expense associated
with employee benefits.
4.16
|
Post-employment benefits and benefits for short-term employees
|
Post-employment benefits
Defined benefit plans
The seniority pension to which employees are entitled after 15 years of service and after having retired at the age of 60, are expensed in the years in which the services are rendered (see Note 23).
Grupo TMM, S.A.B. and Subsidiaries
|
24
|
In addition, the Company has pension plans for certain employees who retire after the age of 65 (or early retirement at 60 or 55), in addition to having completed a minimum 15 years of service, which are expensed in the years in which
the services are rendered (see Note 23).
Under the defined benefits plan, the pension amount an employee will receive upon retirement is determined in reference to the time of service and salary determined for each case based on the plan. The legal obligation of the benefits
lies with Grupo TMM, even if the plan’s assets to finance the defined benefits plan are separate. The plan’s assets may include assets specifically designated in a long-term benefit fund.
The liability recognized in the consolidated statement of financial position for the defined benefits plans is the present value of the defined benefits obligation (DBO) as of the reporting date less the fair value of the plan assets.
Management estimates the DBO annually with the assistance of independent actuaries, based on the standard inflation rate, the salary growth rates, and the mortality rate. The discount factors are determined near the close of each year in
reference to the high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and which have maturities similar to the terms of the corresponding pension liability.
The net cost for the defined benefits liability period is included in the item ‘Salaries, wages and employee benefits’ in the consolidated statements of profit or loss.
Indemnifications
Indemnifications that are not substitutive of retirement, paid to personnel who leave the company due to restructuring or any other reason, are charged to the operations for the period when incurred or provisions are created when there
is a present obligation of these events, with a probability of an outflow of resources and this obligation can be reasonably estimated.
Short-term employee benefits
Short-term employee benefits, including vacation entitlement, are current liabilities included in ‘Accounts payable and accrued expenses’, measured at the amount Grupo TMM expects to pay as a result of time not taken; as these
liabilities are short-term, they were not discounted as their effect is considered immaterial.
4.17
|
Stockholders’ equity
|
Common shares are classified as equity. Grupo TMM does not have other equity instruments in addition to its common shares.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of taxes, from the proceeds. Incremental costs directly attributable to the issue of new shares or options are included
in the cost of acquisition as part of the purchase consideration.
The accumulated losses include the profit (loss) for the year and previous periods.
Other components of equity capital include:
|
•
|
revaluation surplus, including gains and losses from the revaluation of vessels and properties;
|
|
•
|
statutory reserve corresponds to the separation of earnings withheld for this reserve;
|
Grupo TMM, S.A.B. and Subsidiaries
|
25
|
|
•
|
additional paid-in capital is equivalent to the amount received in excess of the par value of the shares;
|
|
•
|
translation result represents the cumulative effect of the change in functional currency in previous years; and
|
|
•
|
actuarial gains and losses include experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred); and the effects of changes in actuarial assumptions.
|
4.18
|
Recognition of revenue, costs and expenses, and financing costs
|
Revenues
Company’s revenue arises mainly from services of maritime transportation, logistics and warehousing. To determine whether to recognize revenue, the Company follows a 5-step process:
|
1.
|
Identifying the contract with a customer
|
|
2.
|
Identifying the performance obligations
|
|
3.
|
Determining the transaction price
|
|
4.
|
Allocating the transaction price to the performance obligations
|
|
5.
|
Recognizing revenue when/as performance obligation(s) are satisfied.
|
The Company does not carry out transactions that involve different contracts and on which their characteristics must be combined in accordance with IFRS. Moreover, transactions are not usually carried out that involve different services
as part of the same contract; therefore, the total price of the transaction for a contract in all cases is allocated to a single performance obligation, based on their relative independent sales prices. The transaction price for contracts
does not consider variable payments, except for certain service payments that are not considered significant in connection with the total revenues of the Company, nor are payments in kind, nor amounts collected on behalf of third parties
and nor contemplate a financing component.
All revenues are recognized over time, as the Company meets performance obligations by transferring the services promised to its customers.
When the Company meets a performance obligation before receiving the payment, the Company already recognizes either a contract asset or a receivable in its consolidated statement of financial position, depending upon if something else is
required than only passage of time before the consideration becomes due. The Company generally does not receive payments in advance in connection with performance obligations; therefore, contractual liabilities are not required to be
recognized.
In obtaining these contracts, the Company incurs immaterial incremental costs. Since the amortization period of these costs would be less than one year, if capitalized, and also that those costs are immaterial, the Company makes use of
the practical expedient in IFRS 15.94 and expenses them as they incur.
Grupo TMM, S.A.B. and Subsidiaries
|
26
|
Parcel vessels and bulk carriers
These revenues are derived from the transportation of merchandise through the Company’s own shipments or third parties, usually in periods ranging between 7 and 30 days. The rate is fixed and it is set at the beginning of the contract,
based on the space or capacity required by the customer. The performance obligation is met as the merchandise is transported from the point of origin to the destination. Revenues are recognized over time on a straight-line basis during the
term of each contract. Given that the costs required for rendering the service under these contracts do not vary significantly, that method provides a reasonable representation of the services transferred.
The amounts that remain unbilled at the end of the reporting period are presented in the consolidated statement of financial position as contractual assets, since something additional is required in addition to time elapsed in order for
those amounts to become due and payable. The Company generally does not receive advances that exceed the amount of obligations met; therefore, contract liability balances are not generated.
Maritime administration services
They correspond to revenues for services rendered for contracting, operating, and managing shipments, mainly offshore service providers. The rate for these services is determined by applying a 2.85% profit margin to the costs incurred by
the Company for rendering services. This percentage is reviewed annually, and it can be increased under certain circumstances, but by applying it beginning the year subsequent to its modification, these services are considered a single
performance obligation. Accordingly, the consideration is totally allocated; revenues are recognized over time as the related costs are incurred by applying the corresponding profit margin. The amounts are billed monthly, in accordance with
these referred to above; therefore, neither asset balances nor contract liabilities are generally generated.
Ship repair services (shipyard) and containers
They correspond to revenues for minor and major repairs and maintenance to ships made at the facilities of the Company (shipyard), as well as containers of shipping companies and others such as wharfage. The consideration for the
services is fixed, and it is determined in the contract based on the work ordered, including materials and replacement parts, which must be realized in an estimated period for the work, which ranges from 2 days up to 60 days for ships, and
from 1 day up to 6 days for containers. Wharfage depends on the considerations of the ship from 1 to 365 days, due to the high degree of interdependence among the various elements of these services. They are recorded in the accounting as a
single performance obligation. These revenues are recognized over time in conformity with the completion of the services agreed upon.
The Company measures its completion toward total compliance of the performance obligation by comparing real hours invested up to the date with the total estimated hours required to perform the repair or maintenance, including related
costs. This base reasonably represents services transferred to each customer, by virtue of the ability of the Company to make reliable estimates based on its significant historical experience in rendering these services.
The amounts that remain unbilled at the end of the reporting period are presented in the consolidated statement of financial position as contractual assets, since something additional is required in addition to time passaged in order for
those amounts to become due and payable. The Company generally does not receive advances that exceed the amount of obligations met; therefore, liabilities balances are not generated.
Grupo TMM, S.A.B. and Subsidiaries
|
27
|
Other services
The Company obtains revenues for other services such as tugboats, suppliers, negotiations, port formalities, among other things. Most of these services are considered single performance obligations in the terms of the respective
contracts, and the consideration is entirely allocated to those performance obligations. Revenues are recognized over time, since customers receive and consume the benefits as the Company renders the services, that is, as the performance
obligations are met. The Company does not generate asset balances or contract liabilities for most of these services. The Company acts as an agent for the specific case of agency services and, therefore, it recognizes the revenues
corresponding to the profit margin generated net of the costs incurred.
Costs and expenses
The costs and expenses for maritime, and also those related to other logistics operations, are recognized in operations when the services are rendered, materials are consumed or as incurred.
Financing income and costs
Interest income and expense are reported as accrued using the effective interest method and are reported as part of the comprehensive financing cost.
4.19
|
Information by segments
|
The Company has four operating segments: maritime division, logistics division, ports and terminals division and warehousing division. These operating segments are monitored by the Company’s Management, who are responsible for making
strategic decisions, which are made based on adjusted operating segment results. In identifying its operating segments. Management follows Grupo TMM’s service lines, which represent the main services provided by the Company.
Each of these operating segments is managed separately as each of these service lines requires different technologies and other resources as well as marketing approaches. All inter-segment transfers are carried out at market prices.
The accounting policies Grupo TMM uses for segment reporting are the same as those used in its consolidated financial statements, with the exception that corporate assets which are not directly attributable to the business activities of
any operating segment are not allocated. In the financial periods presented, this primarily applies to Grupo TMM’s corporate headquarters.
4.20
|
Significant management judgment in applying accounting policies and estimation uncertainty
|
When preparing the consolidated financial statements, Management considers a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.
Significant management judgment
The reporting judgments made by Management as to the application of the accounting policies of the Company that would have a material effect on the consolidated financial statements are described following.
Grupo TMM, S.A.B. and Subsidiaries
|
28
|
Evaluation of control, significant influence, and joint control
Management evaluates the terms of voting power with respect to its investees, the power to govern, decisions, contractual and legal agreements, upon determining if there is control, significant influence, and joint control. Significant
judgment is required by evaluating some of these characteristics that can be modified over time (see Note 4.2).
Estimation uncertainty
Information about estimates and assumptions that have the most significant effect on the recognition and measurement of assets, liabilities, income and expenses is provided below; actual results may be substantially different.
Impairment of long-lived assets
On assessing impairment, Management determines the recoverable value of each asset or cash generating unit based on the expected future cash flows and determines an adequate interest rate to be able to calculate the present value of
these cash flows.
The uncertainty in the estimate is related to the assumptions regarding results of future operations and the determination of suitable discount rate.
Useful lives of depreciable assets
Management reviews the useful lives of the depreciable assets on each reporting date, based on the expected use of each asset. The uncertainty in these estimates is derived from the technical obsolescence that could change the expected
use of vessels and other equipment.
Defined benefits obligation
Management’s estimate of the DBO is based on a number of critical assumptions, such as inflation rates, mortality rates, discount rate, and a consideration for future salary increases. The variances in these assumptions can impact the
amount of the DBO and the corresponding annual expense for defined benefits (the analysis is provided in Note 23).
Measures of fair value
Management uses valuation techniques to measure the fair value of its vessels and properties. This results in Management preparing estimates and assumptions based on market information and using observable data that could be used by
market participants to assign a price to the asset, however these are not always available. Moreover, other valuation techniques based on expected future cash flows are used for certain assets, and an interest rate is determined to
calculate their present value. These fair value estimates for these non-financial assets can vary from the actual prices obtained on operations at market value on the reporting date, as well as future results and the discount rate (see Note
25).
Grupo TMM, S.A.B. and Subsidiaries
|
29
|
Leases – determination of the appropriate discount rate to measure lease liabilities
As noted above, the Company enters into leases with third-party landlords and as a consequence the rate implicit in the relevant lease is not readily determinable. Therefore, the Company uses its incremental borrowing rate as the
discount rate for determining its lease liabilities at the lease commencement date. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow over similar terms which requires estimations when no
observable rates are available.
These rates are, where necessary, then adjusted to reflect the credit worthiness of the entity entering into the lease and the specific condition of the underlying leased asset. The estimated incremental borrowing rate is higher than the
parent company for leases entered into by its subsidiary undertakings.
Effect of estimation uncertainty:
The effect of a change in the incremental borrowing rate for leases entered into during the reporting period is shown in the table below:
Estimate
|
|
Change in estimate
|
|
Effect on right-of-
use asset
|
|
Effect on lease
liability
|
Incremental borrowing rate
|
|
1% increase in the rate
|
|
Reduces by $7,564
|
|
Reduces by $7,564
|
5
|
Acquisitions and disposals
|
Disposal of subsidiaries
Year 2020
Grupo TMM sold 100% of the shares of the subsidiaries Siremirta Corporate, S.A. de C.V., Ricalme Services, S.A. de C.V., Dogoubert, S.A.P.I. de C.V. (Split of TMM Logistics, S.A. de C.V.) and Judsony, S.A.P.I. de C.V. (Split of TMM
Logistics, S.A. de C.V.) to an unrelated third party in 2020. The gain on the sale of these subsidiaries amounted to $451, which is shown in the item of ‘Other (expenses) income’ in the consolidated statements of profit or loss (see Note
19). The value of the net assets of those subsidiaries was immaterial as of the date of the sale.
Year 2019
Grupo TMM sold 100% of the shares of the subsidiaries Bamorau Servicios, S.A.P.I. de C.V. and Snekke, S.A. de C.V. (tugboats) to unrelated third parties in 2019.
Grupo TMM, S.A.B. and Subsidiaries
|
30
|
At the date of sale, the value of the assets of those subsidiaries and the consideration received was as follows:
|
|
Snekke, S.A. de
C.V. (a)
|
|
|
Bamorau
Servicios,
S.A.P.I. de C.V.
|
|
|
Total
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Other accounts receivable
|
|
$
|
27,786
|
|
|
$
|
-
|
|
|
$
|
27,786
|
|
Other current assets
|
|
|
5,388
|
|
|
|
-
|
|
|
|
5,388
|
|
Total current assets
|
|
|
33,174
|
|
|
|
-
|
|
|
|
33,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
|
|
|
339,038
|
|
|
|
-
|
|
|
|
339,038
|
|
Total assets
|
|
$
|
372,212
|
|
|
|
-
|
|
|
$
|
372,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Other accounts payable
|
|
$
|
25,243
|
|
|
|
-
|
|
|
$
|
25,243
|
|
Total short-term liabilities
|
|
|
25,243
|
|
|
|
-
|
|
|
|
25,243
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax
|
|
|
58,920
|
|
|
|
-
|
|
|
|
58,920
|
|
Total liabilities
|
|
$
|
84,163
|
|
|
|
-
|
|
|
$
|
84,163
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net assets
|
|
$
|
288,049
|
|
|
|
-
|
|
|
$
|
288,049
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consideration transferred
|
|
|
543,184
|
|
|
|
24,609
|
|
|
|
567,793
|
|
Gain on the disposition of subsidiaries
|
|
$
|
255,135
|
|
|
$
|
24,609
|
|
|
$
|
279,744
|
|
In December 2019, in connection with the sale of Snekke, S.A. de C.V., and with the prior authorization of the Administración Portuaria Integral de Manzanillo, the Company transferred the rights to its concession to provide tugboat
services in the port of Manzanillo in favor of the buyer, following which the Company stopped operating its tugboat business (see Note 11).
The gain on the sale of these subsidiaries is shown in the item of ‘Other (expenses) income’ (see Note 19).
These divestitures form part of the business plan and financial restructuring of Grupo TMM, which contemplates focusing its resources and operation in the specialized maritime and ports and terminals, through a more efficient operating
structure.
Year 2018
Grupo TMM sold 100% of the shares of the subsidiaries Impact Engine, S.A. de C.V., Talocaan Services, S.A. de C.V., and Ditermax Corporate, S.A. de C.V. to an unrelated third party in 2018. These divestitures form part of the business
plan of Grupo TMM, which contemplates focusing its resources and operation in the specialized maritime segment.
The gain on the sale of these subsidiaries amounted to $111,484, which is shown in the item of ‘Other (expenses) income’ in the consolidated statements of profit or loss (see Note 19). The value of the net assets of those subsidiaries
was immaterial as of the date of the sale.
Grupo TMM, S.A.B. and Subsidiaries
|
31
|
Acquisition of subsidiaries
Year 2020
During 2020 no company was acquired.
Year 2019
On February 14, 2019, the Company acquired the remaining 50% of the shares of Servicies & Solutions Optimus, S. de R.L. de C.V., giving Grupo TMM 100% of the shares of the entity and control as of that date. The purpose of this
acquisition is to continue to the develop hydrocarbon and refined oil product storage and transportation infrastructure, such as gasoline, diesel and jet fuel in the port of Tuxpan.
The details of this business combination are as follows:
|
|
2019
|
|
Fair value of the consideration transferred
|
|
$
|
51,126
|
|
|
|
|
|
|
Recognized amounts of identifiable net assets
|
|
|
|
|
Cash and cash equivalents
|
|
|
671
|
|
Other current assets
|
|
|
8,703
|
|
Land
|
|
|
122,481
|
|
Construction in progress
|
|
|
23,595
|
|
Total identifiable assets
|
|
|
155,450
|
|
|
|
|
|
|
Accounts payable
|
|
|
113,777
|
|
Other liabilities
|
|
|
373
|
|
Total liabilities assumed
|
|
|
114,150
|
|
Identifiable net assets
|
|
$
|
41,300
|
|
Goodwill on acquisition
|
|
$
|
9,826
|
|
|
|
|
|
|
Consideration transferred settled in cash
|
|
$
|
51,126
|
|
Cash and cash equivalents acquired receive on acquisition
|
|
|
(671
|
)
|
Net cash outflow on acquisition
|
|
$
|
50,455
|
|
Goodwill of $ 9,826 is mainly related to growth expectations, expected future profitability that the management of Grupo TMM estimated at the acquisition date. As of December 31, 2019, Grupo TMM’s management decided to impair goodwill in
view that the operations will not generate cash flows for the next two years as the project continues and construction remains in progress. The impairment is presented in the consolidated statement of profit or loss as part of the item
“Other (expenses) income” (see Note 19).
6
|
Cash and cash equivalents
|
Cash and cash equivalents as of December 31, 2020 and 2019, are summarized as follows:
|
|
2020
|
|
|
2019
|
|
Cash on hand
|
|
$
|
756
|
|
|
$
|
902
|
|
Cash at banks
|
|
|
49,356
|
|
|
|
126,972
|
|
Short-term investments (a)
|
|
|
55,198
|
|
|
|
348,840
|
|
|
|
$
|
105,310
|
|
|
$
|
476,714
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
32
|
|
(a)
|
Includes fix-term deposits (promissory notes) and repurchase/resell agreements with terms up to 3 days.
|
Restricted cash
As of December 2020 and 2019, restricted cash represents the amounts $37,672 and $36,085, respectively, required to guarantee payments according to the obligations arising from the debt agreements for the acquisition of vessels and
guarantee for the sale of Terminal Marítima de Tuxpan, S.A. de C.V.
Trade receivables as of December 31, 2020 and 2019, are summarized as follows:
|
|
2020
|
|
|
2019
|
|
Maritime
|
|
|
|
|
|
|
Shipyard
|
|
$
|
40,979
|
|
|
$
|
34,325
|
|
Tugboats
|
|
|
13,981
|
|
|
|
19,406
|
|
Parcel tankers
|
|
|
14,485
|
|
|
|
18,217
|
|
Offshore vessels
|
|
|
29,864
|
|
|
|
4,737
|
|
Bulk carrier
|
|
|
98
|
|
|
|
906
|
|
Others
|
|
|
-
|
|
|
|
173
|
|
|
|
|
|
|
|
|
|
|
Ports and terminals
|
|
|
|
|
|
|
|
|
Shipping agencies
|
|
|
331
|
|
|
|
128,300
|
|
Port services
|
|
|
7,152
|
|
|
|
10,732
|
|
Commercial leases
|
|
|
106
|
|
|
|
93
|
|
|
|
|
|
|
|
|
|
|
Logistics, warehousing and other businesses
|
|
|
|
|
|
|
|
|
Warehousing
|
|
|
27,145
|
|
|
|
44,820
|
|
Repair of containers
|
|
|
16,204
|
|
|
|
28,986
|
|
Automotive services
|
|
|
1,021
|
|
|
|
1,112
|
|
Other businesses
|
|
|
-
|
|
|
|
1,165
|
|
Total trade receivables
|
|
|
151,366
|
|
|
|
292,972
|
|
Contract assets
|
|
|
56,215
|
|
|
|
65,443
|
|
Allowance for doubtful accounts
|
|
|
(21,218
|
)
|
|
|
(14,385
|
)
|
|
|
$
|
186,363
|
|
|
$
|
344,030
|
|
All amounts are short-term. The net carrying value of trade accounts receivables is considered a reasonable approximation to fair value.
The activity in the allowance for doubtful accounts is presented below:
|
|
2020
|
|
|
2019
|
|
Balance as of January 1
|
|
$
|
14,385
|
|
|
$
|
22,303
|
|
Impairment loss for the period
|
|
|
20,140
|
|
|
|
-
|
|
Receivables written off during the year
|
|
|
-
|
|
|
|
(1,847
|
)
|
Allowance cancelation recognized during the year
|
|
|
(13,307
|
)
|
|
|
(6,071
|
)
|
Balance as of December 31
|
|
$
|
21,218
|
|
|
$
|
14,385
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
33
|
Note 26 includes disclosures related to credit risk exposures and the analysis related to the allowance for expected credit losses. In 2020 and 2019 the impairment loss was calculated applying the expected credit loss model in accordance
with IFRS 9.
8
|
Other accounts receivable
|
Other accounts receivable as of December 31, 2020 and 2019, are summarized as follows:
|
|
2020
|
|
|
2019
|
|
Current
|
|
|
|
|
|
|
Recoverable taxes
|
|
$
|
203,503
|
|
|
$
|
306,327
|
|
Services for port, maritime and other operations
|
|
|
54,288
|
|
|
|
93,692
|
|
Employees
|
|
|
4,495
|
|
|
|
4,698
|
|
Insurance claims
|
|
|
818
|
|
|
|
773
|
|
Others
|
|
|
1,157
|
|
|
|
16,280
|
|
|
|
|
264,261
|
|
|
|
421,770
|
|
Non-current
|
|
|
|
|
|
|
|
|
Value added tax recoverable (a)
|
|
|
238,000
|
|
|
|
-
|
|
|
|
$
|
502,261
|
|
|
$
|
421,770
|
|
|
(a)
|
During the 2020, the VAT recovery processes have been affected by practices of the tax authorities to extend the recovery periods.
|
9
|
Property, vessels and equipment
|
Property, vessels and equipment as of December 31, 2020 and 2019 are summarized as follows:
|
|
2020
|
|
|
|
Net
balances at
beginning
of year
|
|
|
Additions
|
|
|
Disposals
|
|
|
|
Transfers
and others
|
|
|
|
Depreciation
/ loss from
revaluation
|
|
|
Net
balances at
year end
|
|
|
Estimated
useful
lives(years)
|
|
Vessels
|
|
$
|
214,938
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
$
|
(16,241
|
)
|
(a)
|
|
$
|
16,642
|
|
|
$
|
182,055
|
|
|
25
|
|
Shipyard
|
|
|
232
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
42
|
|
|
|
190
|
|
|
40
|
|
Major vessel maintenance
|
|
|
15,180
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
5,871
|
|
|
|
|
14,193
|
|
|
|
6,858
|
|
|
2.5
|
|
Buildings and facilities
|
|
|
299,660
|
|
|
|
3,432
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
16,860
|
|
|
|
286,232
|
|
|
20 & 25
|
|
Warehousing equipment
|
|
|
205
|
|
|
|
616
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
371
|
|
|
|
450
|
|
|
10
|
|
Computer equipment
|
|
|
456
|
|
|
|
214
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
273
|
|
|
|
397
|
|
|
3 & 4
|
|
Terminal equipment
|
|
|
26,035
|
|
|
|
999
|
|
|
|
281
|
|
|
|
|
-
|
|
|
|
|
2,444
|
|
|
|
24,309
|
|
|
10
|
|
Ground transportation equipment
|
|
|
5,027
|
|
|
|
79
|
|
|
|
-
|
|
|
|
|
28
|
|
|
|
|
1,404
|
|
|
|
3,730
|
|
|
4,5 & 10
|
|
Other equipment
|
|
|
10,892
|
|
|
|
166
|
|
|
|
180
|
|
|
|
|
1
|
|
|
|
|
1,379
|
|
|
|
9,500
|
|
|
|
|
|
|
|
572,625
|
|
|
|
5,506
|
|
|
|
461
|
|
|
|
|
(10,341
|
)
|
|
|
|
53,608
|
|
|
|
513,721
|
|
|
|
|
Lands
|
|
|
1,597,923
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
336,422
|
|
(a)
|
|
|
-
|
|
|
|
1,934,345
|
|
|
|
|
Constructions in progress
|
|
|
114,872
|
|
|
|
22,869
|
|
|
|
31,804
|
|
(b)
|
|
|
(22,007
|
)
|
|
|
|
-
|
|
|
|
83,930
|
|
|
|
|
|
|
$
|
2,285,420
|
|
|
$
|
28,375
|
|
|
$
|
32,265
|
|
|
|
$
|
304,074
|
|
|
|
$
|
53,608
|
|
|
$
|
2,531,996
|
|
|
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
34
|
|
|
2019
|
|
|
|
Net
balances at
beginning of year
|
|
|
Additions
|
|
|
|
Disposals
|
|
|
|
Transfers
and others
|
|
|
|
Depreciation
/ loss from
revaluation
|
|
|
Net
balances at
year end
|
|
|
Estimated
useful
lives(years)
|
|
Vessels
|
|
$
|
782,673
|
|
|
$
|
-
|
|
|
|
$
|
200,119
|
|
(c), (g)
|
|
$
|
(337,211
|
)
|
(d)
|
|
$
|
30,405
|
|
|
$
|
214,938
|
|
|
25
|
|
Shipyard
|
|
|
275
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
43
|
|
|
|
232
|
|
|
40
|
|
Major vessel maintenance
|
|
|
41,611
|
|
|
|
1,753
|
|
|
|
|
12,317
|
|
|
|
|
(1,979
|
)
|
|
|
|
13,888
|
|
|
|
15,180
|
|
|
2.5
|
|
Buildings and facilities
|
|
|
238,901
|
|
|
|
4,891
|
|
|
|
|
-
|
|
|
|
|
67,484
|
|
(e)
|
|
|
11,616
|
|
|
|
299,660
|
|
|
20 & 25
|
|
Warehousing equipment
|
|
|
255
|
|
|
|
419
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
469
|
|
|
|
205
|
|
|
10
|
|
Computer equipment
|
|
|
581
|
|
|
|
249
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
374
|
|
|
|
456
|
|
|
3 & 4
|
|
Terminal equipment
|
|
|
7,390
|
|
|
|
280
|
|
|
|
|
-
|
|
|
|
|
20,345
|
|
|
|
|
1,980
|
|
|
|
26,035
|
|
|
10
|
|
Ground transportation equipment
|
|
|
5,366
|
|
|
|
1,621
|
|
|
|
|
602
|
|
|
|
|
36
|
|
|
|
|
1,394
|
|
|
|
5,027
|
|
|
4,5 & 10
|
|
Other equipment
|
|
|
7,079
|
|
|
|
446
|
|
|
|
|
-
|
|
|
|
|
4,663
|
|
|
|
|
1,296
|
|
|
|
10,892
|
|
|
|
|
|
|
|
1,084,131
|
|
|
|
9,659
|
|
|
|
|
213,038
|
|
|
|
|
(246,662
|
)
|
|
|
|
61,465
|
|
|
|
572,625
|
|
|
|
|
Lands
|
|
|
1,146,252
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
451,671
|
|
(e)
|
|
|
-
|
|
|
|
1,597,923
|
|
|
|
|
Constructions in progress
|
|
|
83,054
|
|
|
|
38,622
|
|
(f)
|
|
|
-
|
|
|
|
|
(6,804
|
)
|
|
|
|
-
|
|
|
|
114,872
|
|
|
|
|
|
|
$
|
2,313,437
|
|
|
$
|
48,281
|
|
|
|
$
|
213,038
|
|
|
|
$
|
198,205
|
|
|
|
$
|
61,465
|
|
|
$
|
2,285,420
|
|
|
|
|
All the amounts for depreciation and for loss from revaluation are included as part of the depreciation, amortization, and loss from revaluation on the consolidated statements of profit or loss.
The accumulated depreciation on property, vessels and equipment at December 31, 2020 and 2019 is $290,056 and $261,862, respectively.
|
(a)
|
It is mainly comprised of the surplus for revaluation of land for $ 330,571 and a deficit for revaluation of vessels for $ 16,135.
|
|
(b)
|
Corresponds mainly to the cancellation of the project called “Terminal Quintana Roo”, derived from changes in the conditions of the project previously considered by Management.
|
|
(c)
|
On August 30, 2019, the sale of the vessel SMR Manzanillo to Bricor Servicios Portuarios Mexicanos, S.A. de C.V. by Transportación Marítima Mexicana, S.A. de C.V., a subsidiary of Grupo TMM, was complete for an amount of $15,703,
generating a profit of $ 4,410.
|
|
(d)
|
It is comprised mainly of disposal of the TMM Colima vessel in the divestiture of Snekke, S.A. de C.V. of Grupo TMM for $339,038, which is partially offset by the revaluation surplus of $1,827.
|
|
(e)
|
Includes the surplus for revaluation of lands and properties for $310,833 and $66,518, respectively.
|
|
(f)
|
Corresponds to the construction of infrastructure for various projects related to the storage and transportation of hydrocarbons and refined petroleum products.
|
|
(g)
|
During 2018, the offshore vessel ‘Subsea 88’ suffered a major mishap in one of its areas and for which it stopped operating. As of December 31, 2018, Grupo TMM was making the corresponding insurance claims without a final
settlement having been issued on the mishap as of that date. Since the repair of the ship requires a substantial time that affects future cash flows, Management recognized a loss in fair value in the amount of $206,076.
|
Grupo TMM, S.A.B. and Subsidiaries
|
35
|
Subsequently, in June 2019 the insurer declared the vessel ‘Subsea 88’ as a total loss. Given the result, the Company recognized the loss of the vessel for a total of $ 191,377, which was its book value as of
that date.
If the cost model had been used, the revalued carrying amounts for vessels, land and properties as of December 31, 2020 and 2019, would be as follows:
|
|
2020
|
|
|
2019
|
|
Vessels
|
|
$
|
102,993
|
|
|
$
|
108,414
|
|
Lands
|
|
|
715,616
|
|
|
|
715,616
|
|
Properties
|
|
|
140,360
|
|
|
|
147,747
|
|
|
|
$
|
958,969
|
|
|
$
|
971,777
|
|
The revalued amounts include a revaluation surplus of $1,455,179 and $1,140,744 in 2020 and 2019, respectively, before taxes, which is not available for distribution to stockholders.
Fair value measurement
See Note 25 regarding the measuring of fair value for vessels and properties.
Guarantees
At the end of 2020 no vessel was under warranty, while at the end of 2019, the vessel ‘Olmeca’ was securing financial debt with ‘ACT Maritime, LLC’ (see Note 14).
At the end of 2020, there were three properties securing various bank loans, while at the end of 2019 there were two properties under guarantee. Likewise, as of December 31, 2020 and 2019, there was an RTG crane under guarantee with ‘PNC
Bank, N.A.’.
Grupo TMM, S.A.B. and Subsidiaries
|
36
|
Right-of-use assets
|
|
2020
|
|
|
|
Warehouse
|
|
|
Cranes
|
|
|
Courtyards
|
|
|
Major vessel
maintenance
|
|
|
Corporate
building
|
|
|
|
Total
|
|
Gross carrying amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance 1 January 2020
|
|
$
|
83,968
|
|
|
$
|
3,112
|
|
|
$
|
60,035
|
|
|
$
|
10,834
|
|
|
$
|
513,735
|
|
|
|
$
|
671,684
|
|
Additions
|
|
|
216,548
|
|
|
|
8,610
|
|
|
|
-
|
|
|
|
22,135
|
|
|
|
92,170
|
|
|
|
|
339,463
|
|
Disposals
|
|
|
12,875
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,834
|
|
|
|
513,735
|
|
(a)
|
|
|
537,444
|
|
Balance at 31 December 2020
|
|
|
287,641
|
|
|
|
11,722
|
|
|
|
60,035
|
|
|
|
22,135
|
|
|
|
92,170
|
|
|
|
|
473,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance 1 January 2020
|
|
|
40,212
|
|
|
|
2,197
|
|
|
|
10,794
|
|
|
|
8,667
|
|
|
|
49,715
|
|
|
|
|
111,585
|
|
Disposals
|
|
|
1,884
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,834
|
|
|
|
62,146
|
|
|
|
|
74,864
|
|
Depreciation
|
|
|
44,708
|
|
|
|
4,960
|
|
|
|
11,701
|
|
|
|
6,317
|
|
|
|
15,064
|
|
|
|
|
82,750
|
|
Balance 31 December 2020
|
|
|
83,036
|
|
|
|
7,157
|
|
|
|
22,495
|
|
|
|
4,150
|
|
|
|
2,633
|
|
|
|
|
119,471
|
|
Carrying amount 31 December 2020
|
|
$
|
204,605
|
|
|
$
|
4,565
|
|
|
$
|
37,540
|
|
|
$
|
17,985
|
|
|
$
|
89,537
|
|
|
|
$
|
354,232
|
|
|
|
2019
|
|
|
|
Warehouse
|
|
|
Cranes
|
|
|
Courtyards
|
|
|
Major vessel
maintenance
|
|
|
Corporate
building
|
|
|
Total
|
|
Gross carrying amount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance 1 January 2019
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Additions
|
|
|
83,968
|
|
|
|
3,112
|
|
|
|
60,035
|
|
|
|
10,834
|
|
|
|
513,735
|
|
|
|
671,684
|
|
Disposals
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Balance at 31 December 2019
|
|
|
83,968
|
|
|
|
3,112
|
|
|
|
60,035
|
|
|
|
10,834
|
|
|
|
513,735
|
|
|
|
671,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance 1 January 2019
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Disposals
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Depreciation
|
|
|
40,212
|
|
|
|
2,197
|
|
|
|
10,794
|
|
|
|
8,667
|
|
|
|
49,715
|
|
|
|
111,585
|
|
Balance 31 December 2019
|
|
|
40,212
|
|
|
|
2,197
|
|
|
|
10,794
|
|
|
|
8,667
|
|
|
|
49,715
|
|
|
|
111,585
|
|
Carrying amount 31 December 2019
|
|
$
|
43,756
|
|
|
$
|
915
|
|
|
$
|
49,241
|
|
|
$
|
2,167
|
|
|
$
|
464,020
|
|
|
$
|
560,099
|
|
|
(a)
|
It corresponds to the cancellation of the rental agreement of the former corporate headquarters located on Av. De la Cuspide, which generates an effect on profit or loss in the amount of $113,469, which is presented in the
caption of other (expenses) income (See note 19). In accordance with the agreement, the Company is bound to pay an amount of 158 thousand dollars monthly for 4 years, which will be conditioned to the rent or sale by the lessor of
the real property.
|
Grupo TMM, S.A.B. and Subsidiaries
|
37
|
Lease liabilities
As of December 31, 2020 and December 31, 2019, the information on leases is summarized below:
|
|
2020
|
|
|
|
Short-term
|
|
|
Long-term
|
|
Payable in Mexican pesos
|
|
|
|
|
|
|
Warehouse
|
|
$
|
33,916
|
|
|
$
|
174,894
|
|
Cranes
|
|
|
4,272
|
|
|
|
488
|
|
Courtyards
|
|
|
8,260
|
|
|
|
33,030
|
|
Major vessel maintenance
|
|
|
6,490
|
|
|
|
13,214
|
|
|
|
|
|
|
|
|
|
|
Payable in US dollars
|
|
|
|
|
|
|
|
|
Corporate building
|
|
|
5,307
|
|
|
|
75,642
|
|
|
|
$
|
58,245
|
|
|
$
|
297,268
|
|
|
|
2019
|
|
|
|
Short-term
|
|
|
Long-term
|
|
Payable in Mexican pesos
|
|
|
|
|
|
|
Warehouse
|
|
$
|
32,673
|
|
|
$
|
14,094
|
|
Cranes
|
|
|
963
|
|
|
|
-
|
|
Courtyards
|
|
|
10,285
|
|
|
|
41,248
|
|
Major vessel maintenance
|
|
|
2,269
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Payable in US dollars
|
|
|
|
|
|
|
|
|
Corporate building
|
|
|
14,388
|
|
|
|
471,439
|
|
|
|
$
|
60,578
|
|
|
$
|
526,781
|
|
Grupo TMM has leased its corporate headquarters building, warehouses for the storage service, cranes for the logistics services and a major vessel maintenance. With the exception of short-term leases and low-value underlying assets, each
lease is reflected on the consolidated statement of financial position as a right-of-use asset and a lease liability.
Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company.
Leases are either non-cancellable or may only be cancelled by incurring a substantive termination fee. Some leases contain an option to extend the lease for a further term.
Grupo TMM is prohibited from selling or pledging the underlying leased assets as security. For leases over office buildings and warehouses, Grupo TMM must keep those properties in a good state of repair and return the properties.
Further, Grupo TMM must insure items of leases assets and incur maintenance fees on such items in accordance with the lease contracts.
Grupo TMM, S.A.B. and Subsidiaries
|
38
|
The table below describes the nature of Grupo TMM’s leasing activities by type of right-of-use asset recognized in the consolidated statement of financial position:
Right-of-use asset
|
|
No. of
right-of-use
assets
leased
|
|
|
Range of
remaining
term
(years)
|
|
|
No. of
leases with
extension
options
|
|
|
No. of
leases with
purchase
option
|
|
|
No. of
leases with
variable
payments
linked to an
index
|
|
|
No. of
leases with
termination
options
|
|
Corporate headquarters
|
|
|
1
|
|
|
|
8
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
Warehouse
|
|
|
6
|
|
|
|
1 - 5
|
|
|
|
2
|
|
|
|
-
|
|
|
|
6
|
|
|
|
-
|
|
Courtyards
|
|
|
5
|
|
|
|
1 – 6
|
|
|
|
5
|
|
|
|
-
|
|
|
|
5
|
|
|
|
-
|
|
Cranes
|
|
|
1
|
|
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Major vessel maintenance
|
|
|
1
|
|
|
|
4
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Lease liabilities are secured with related underlying assets. Future minimum lease payments at 31 December 2020 and 2019 were as follows:
|
|
Within the
1st year
|
|
|
1 to 3 years
|
|
|
3 to 5 years
|
|
|
After 5
years
|
|
|
Total
|
|
Balance at December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease payments
|
|
$
|
95,914
|
|
|
$
|
178,415
|
|
|
$
|
152,179
|
|
|
$
|
54,620
|
|
|
$
|
481,128
|
|
Financial charges
|
|
|
(37,669
|
)
|
|
|
(55,149
|
)
|
|
|
(23,783
|
)
|
|
|
(9,014
|
)
|
|
|
(125,615
|
)
|
Present values, net
|
|
$
|
58,245
|
|
|
$
|
123,266
|
|
|
$
|
128,396
|
|
|
$
|
45,606
|
|
|
$
|
355,513
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Lease payments
|
|
$
|
121,847
|
|
|
$
|
185,494
|
|
|
$
|
198,259
|
|
|
$
|
427,355
|
|
|
$
|
932,955
|
|
Financial charges
|
|
|
(61,269
|
)
|
|
|
(108,101
|
)
|
|
|
(87,429
|
)
|
|
|
(88,797
|
)
|
|
|
(345,596
|
)
|
Present values, net
|
|
$
|
60,578
|
|
|
$
|
77,393
|
|
|
$
|
110,830
|
|
|
$
|
338,558
|
|
|
$
|
587,359
|
|
Lease payments not recognized as a liability
The Company has elected not to recognize a lease liability for short-term leases (leases with an expected term of 12 months or less) or for leases of low-value assets. Payments made under such leases are expensed on a straight-line
basis. In addition, certain variable lease payments are not permitted to be recognized as lease liabilities and are expensed as incurred.
The expense relating to payments not included in the measurement of the lease liability is as follows:
|
|
2020
|
|
|
2019
|
|
Short-term leases (a)
|
|
$
|
307,643
|
|
|
$
|
296,770
|
|
Leases of low-value assets
|
|
|
4,820
|
|
|
|
3,696
|
|
|
|
$
|
312,463
|
|
|
$
|
300,466
|
|
|
(a)
|
Corresponds to the leasing of parcel and bulk carrier vessels.
|
At December 31, 2020, Grupo TMM was committed on short-term leases and total commitment at that date was $95,914.
Grupo TMM, S.A.B. and Subsidiaries
|
39
|
At December 31, 2020 Grupo TMM had no lease commitments that had not yet started.
Total cash outflow for leases for the years ended December 31, 2020 and 2019 were $402,892 and $434,710, respectively.
As of December 31, 2020 and 2019, the concession rights are as follows:
|
|
2020
|
|
|
2019
|
|
|
Years to amortize
|
|
Administración Portuaria Integral de Acapulco (a)
|
|
$
|
94,607
|
|
|
$
|
94,607
|
|
|
10
|
|
Transportación Marítima Mexicana (b)
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
|
|
94,607
|
|
|
|
94,607
|
|
|
|
|
Accumulated amortization
|
|
|
(92,715
|
)
|
|
|
(88,931
|
)
|
|
|
|
Concession rights, net
|
|
$
|
1,892
|
|
|
$
|
5,676
|
|
|
|
|
|
(a)
|
As of December 31, 2020 and 2019, the Company holds concession to operate the cruise and vehicle terminal at the port of Acapulco, Guerrero. Under this concession agreements, the Company is obliged to keep the facilities included
in the concession in good condition, as well as making monthly payments (fixed and variable), related to the operation (see Note 28).
|
At December 31, 2020 and 2019, the Company was in compliance with its obligation to maintain the concession facilities in good condition.
The amortization of the concession rights was $3,784 for the years ended December 31, 2020 and 2019. Monthly payments to the Administración Portuaria Integral de Acapulco were $7,507 and $7,536 in 2020 and
2019, respectively.
|
(b)
|
As of December 31, 2018, the Company maintained the concession rights to operate the tug services in the Port of Manzanillo, Colima. This concession was renewed in October 2014, expiring on January 16, 2023, with the possibility
of being renewed for another eight years.
|
In connection with the December 2019 sale of Snekke, S.A. de C.V. and with the prior authorization of the Administración Portuaria Integral de Manzanillo, the Company transferred the rights of this concession
in favor of the buyer (see Notes 1 and 5). As of the date of this sale, the total value of the concession rights, which amounted to $30,266, had been fully amortized.
Grupo TMM, S.A.B. and Subsidiaries
|
40
|
Intangible assets as of December 31, 2020 and 2019, are summarized as follows:
|
|
2020
|
|
|
|
Net
balances at
beginning
of year
|
|
|
Additions
|
|
|
|
Transfers
and others
|
|
|
Amortization
|
|
|
Net
balances at
year end
|
|
|
Estimated
useful life
(years)
|
|
Software
|
|
$
|
15,956
|
|
|
$
|
10,508
|
|
(b)
|
|
$
|
-
|
|
|
$
|
742
|
|
|
$
|
25,722
|
|
|
3 y 5
|
|
Trademark (a)
|
|
|
125,528
|
|
|
|
-
|
|
|
|
|
|
|
|
|
-
|
|
|
|
125,528
|
|
|
Indefinite
|
|
|
|
$
|
141,484
|
|
|
$
|
10,508
|
|
|
|
$
|
-
|
|
|
$
|
742
|
|
|
$
|
151,250
|
|
|
|
|
|
|
|
2019
|
|
|
|
Net
balances at
beginning
of year
|
|
|
Additions
|
|
|
Transfers
and others
|
|
|
Amortization
|
|
|
Net
balances at
year end
|
|
|
Estimated
useful life
(years)
|
|
Software
|
|
$
|
909
|
|
|
$
|
19,048
|
|
|
$
|
-
|
|
|
$
|
4,001
|
|
|
$
|
15,956
|
|
|
3 y 5
|
|
Trademark (a)
|
|
|
125,528
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
125,528
|
|
|
Indefinite
|
|
|
|
$
|
126,437
|
|
|
$
|
19,048
|
|
|
$
|
-
|
|
|
$
|
4,001
|
|
|
$
|
141,484
|
|
|
|
|
|
|
(a)
|
Corresponds to the rights on the Marmex trademark associated with the specialized maritime division segment, specifically the offshore vessels operation. This trademark is subject to annual impairment testing (see Note 13).
|
|
(b)
|
Corresponds mainly to the SAP Hana system upgrade project.
|
The accumulated amortization of intangible assets as of December 31, 2020 and 2019, is $3,850 and $7,096, respectively.
13
|
Impairment of long-lived assets
|
As of December 31,2020, and 2019, Grupo TMM had performed annual impairment tests. The recoverable amounts of the cash generating units were determined based on calculations of the value in use and fair value less costs of sale as
follows:
Vessels and trademark
Vessels are identifiable assets that individually generate cash flows which are largely independent from the flows from other assets or groups of assets.
The trademark is considered an asset that does not generate flows independently, therefore this was grouped with the vessels as a cash-generating unit (specialized maritime division segment) together with other long-lived assets in this
segment.
The recovery value for these assets was determined as the higher between their value in use and their market value, less selling costs. As of December 31, 2020, and 2019, no impairment losses were determined for these assets.
Grupo TMM, S.A.B. and Subsidiaries
|
41
|
Properties
The recoverable value of properties was determined as their fair value less costs of sale, which are considered immaterial in terms of the fair value. The determination of fair value is described in Note 25. At December 31, 2020 and
2019, no impairment losses were determined for these assets.
Corporate assets and other long-lived assets
These assets are not identified with any cash-generating unit, therefore these were evaluated at the Grupo TMM level. The recoverable amount of these assets was determined as their value in use. At December 31, 2020 and 2019, no
impairment losses were determined for these assets.
The recoverable amounts for cash-generating units were determined based on calculations of the value in use, covering a detailed three-year projection, followed by an extrapolation of the cash flows expected for the useful lives
remaining for the assets using the growth rates determined by Management.
The present value of the cash flows expected for each segment was determined applying an appropriate discount rate.
|
|
2020
|
|
|
2019
|
|
|
|
Growth rate
|
|
|
Discount rate
|
|
|
Growth rate
|
|
|
Discount rate
|
|
Vessels
|
|
|
2.00
|
%
|
|
|
7.45
|
%
|
|
|
2.00
|
%
|
|
|
7.19
|
%
|
Growth rates
The growth rates reflect the long-term average for these rates for the specialized maritime segment (all publicly available).
Discount rates
The discount rate reflects adequate adjustments associated with the market risk and the specific risk factors.
Cash flow assumptions
The key assumptions of Management for the specialized maritime segment include stable profit margins, which have been determined based on experience in this market. Grupo TMM Management considers this to be the best information available
to forecast this market. The cash flow projections reflect stable profit margins achieved before the period covered by said projections.
No consideration has been given to efficiency improvements and prices and salaries reflect the inflation projected for the industry, which are publicly available.
In addition to the considerations described above for determining the value in use of assets and the cash-generating units described above, Management is currently not aware of any other probable change that could require changes in
their estimate. However, the estimate for the recoverable amount for the specialized maritime segment is particularly sensitive to the discount rates. If the discount rate used increases 1%, the value in use would decrease up to 4.91% in
terms of the value determined, the value that continues to exceed the carrying value of the aforementioned assets.
Grupo TMM, S.A.B. and Subsidiaries
|
42
|
14
|
Financial assets and liabilities
|
Categories of financial assets and liabilities
The financial assets and liabilities as of December 31, 2020 and 2019, are summarized as follows:
|
|
2020
|
|
|
2019
|
|
Financial assets
|
|
|
|
|
|
|
Valued at amortized cost
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
105,310
|
|
|
$
|
476,714
|
|
Restricted cash
|
|
|
37,672
|
|
|
|
36,085
|
|
Trade receivables
|
|
|
130,148
|
|
|
|
278,587
|
|
Other accounts receivable
|
|
|
60,758
|
|
|
|
115,443
|
|
Related parties
|
|
|
42,228
|
|
|
|
163,344
|
|
Total current financial assets
|
|
$
|
376,116
|
|
|
$
|
1,070,173
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
Valued at amortized cost
|
|
|
|
|
|
|
|
|
Short-term portion of the financial debt
|
|
$
|
129,085
|
|
|
$
|
139,189
|
|
Trade payables
|
|
|
228,959
|
|
|
|
262,159
|
|
Accounts payable and accrued expenses
|
|
|
486,827
|
|
|
|
461,892
|
|
Related parties
|
|
|
1,458
|
|
|
|
87,573
|
|
Total short-term portion of the financial debt
|
|
|
846,329
|
|
|
|
950,813
|
|
Long-term financial debt
|
|
|
53,644
|
|
|
|
118,737
|
|
Total financial liabilities
|
|
$
|
899,973
|
|
|
$
|
1,069,550
|
|
As of December 31, 2020, and 2019, the carrying value of the financial assets and liabilities at amortized cost is considered similar to their fair value.
Grupo TMM, S.A.B. and Subsidiaries
|
43
|
Financial debt
The information for financing as of December 31, 2020 and 2019 is summarized as follows:
|
|
2020
|
|
|
2019
|
|
|
|
Short-term
|
|
|
Long-term
|
|
|
Short-term
|
|
|
Long-term
|
|
Payable in Mexican pesos
|
|
|
|
|
|
|
|
|
|
|
|
|
Daimler Financial Services México, S. de R.L. de C.V.
|
|
$
|
16,333
|
|
|
$
|
-
|
|
|
$
|
9,504
|
|
|
$
|
9,074
|
|
Recognition of debt and substitution of debtor for $40.9 million at a fixed rate of 12%, with monthly payments of principal and interest and maturing in
November 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to improve the profile of the schedule of payments, a new debt recognition was formalized on October 11, 2018, in the amount of $28 million at a 12.9%
fixed rate, with monthly payments on principal and interest, due October 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to face the effects of the Covid-19 pandemic, the Company obtained two grace periods of 3 months each for the principal payment from April to September
2020, extending the term of the loan to January 2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company is currently in the process of negotiating with the finance company to restructure the debt repayment schedule.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banco Autofin México, S.A. Institución de Banca Múltiple
|
|
|
23,352
|
|
|
|
12,773
|
|
|
|
23,319
|
|
|
|
28,477
|
|
Five lines of credit with mortgage surety for $45.8, $34.6, $25.5, $21.6, and $8.4 million at a variable rate of the 28-day TIIE plus 450 basis points, with monthly payments of principal and interest,
maturing September 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
On November 26, 2018, a new line of credit was drawn down in the amount of $20 million at a variable rate at 28-day TIIE, plus 550 base points, due November
2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to face the effects of the Covid-19 pandemic, the Company obtained a grace period of 6 months in the payment of principal of 4 of the 6 lines, the
period applies from the months of January to June of 2020, extending the maturity of those lines correspondingly.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INPIASA, S.A. de C.V. (a)
|
|
|
1,435
|
|
|
|
-
|
|
|
|
1,566
|
|
|
|
1,044
|
|
Contract for line of credit, the first for $15.7 million at a variable rate of the 28-day TIIE plus 450 basis points, with monthly payments of principal and interest, and maturing August 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HSBC, S.A. (a)
|
|
|
951
|
|
|
|
-
|
|
|
|
1,629
|
|
|
|
543
|
|
$9.77 million line of credit at a variable rate of the 28-day TIIE plus 300 points, with monthly payments of principal and
interest, and maturing April 2021.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to face the effects of the Covid-19 pandemic, the Company obtained a grace period of 3 months in the payment of
principal from the months of May to July 2020, extending the term of each credit line 3 months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banco del Bajío, S.A. Intemza (a)
|
|
|
211
|
|
|
|
-
|
|
|
|
842
|
|
|
|
-
|
|
$9.36 million line of credit at a variable rate of the 28-day TIIE plus 250 points, with monthly payments of principal and interest, and maturing August 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to face the effects of the Covid-19 pandemic, the Company obtained a 6-month grace period in the payment of principal from April to September 2020,
extending the term of each credit line 6 months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banco del Bajío, S.A. (a)
|
|
|
-
|
|
|
|
-
|
|
|
|
23,227
|
|
|
|
-
|
|
$24.0 million line of credit at a variable rate of the 28-day TIIE plus 600 points, with monthly payments of principal and interest; and maturing in March 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
44
|
|
|
2020
|
|
|
2019
|
|
|
|
Short-term
|
|
|
Long-term
|
|
|
Short-term
|
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Banco del Bajío, S.A.
|
|
|
1,714
|
|
|
|
9,571
|
|
|
|
-
|
|
|
|
-
|
|
$12.0 million line of credit line with a mortgage guarantee for $30.0 million, variable rate of TIIE 28 days plus 600 points, with monthly payments of principal and interest, maturing in July 2027.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portafolio de Negocios, S.A. de C.V. SOFOM
|
|
|
2,738
|
|
|
|
6,334
|
|
|
|
-
|
|
|
|
-
|
|
Line of credit for $10.0 million with a fixed rate of 15.0%, with monthly payments of principal and interest; maturity in July 2023, without prepayment penalty.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other investors
|
|
|
12,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Two unsecured loans were contracted, each for $6.0 million at a fixed rate of 15.0% per annum, with principal and interest payments due, originally in October 2020. The Company is in negotiation extending the payment term, as
well as the conditions of both credits.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payable
|
|
|
563
|
|
|
|
-
|
|
|
|
410
|
|
|
|
-
|
|
|
|
|
59,297
|
|
|
|
28,678
|
|
|
|
60,497
|
|
|
|
39,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total financial debt in Mexican pesos
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACT Maritime, LLC
|
|
|
-
|
|
|
|
-
|
|
|
|
15,843
|
|
|
|
57,349
|
|
A line of credit at 5 years was contracted in September 2018 in the amount of $5.52 million dollars with a variable Libor rate at 90 days plus 750 points, with quarterly payments of principal and
interest, due September 2023. The total credit line that it had with DVB Bank America NV was totally liquidated with the proceeds of this line.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In December 2020, the Company prepaid the total credit line, with the advance received for the sale of the Olmeca vessel
(see Note 29).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
59,806
|
|
|
|
-
|
|
|
|
56,618
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured credits were contracted, each one amounting to $3 million dollars at a fixed rate of 11.25%, with semiannual payments of principal and interest, originally due January 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Both credits were contracted again in January 2017, and $1 million dollars on one of them was paid and both were due in
July 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The payment rescheduling and outstanding balance amounting to $5 million dollars were formalized in July 2017, with a fixed rate of 11.25% with monthly payments on interest and principal, due July
2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A new rescheduling of payments and unpaid balance amounting to $4.5 million dollars was formalized in July 2018, with an
11.25% fixed rate with monthly interest payments. The principal amounting to $500 thousand dollars was paid in July 2018, and the balance of $4 million dollars is due in July 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
45
|
|
|
|
2020
|
|
|
|
2019
|
|
|
|
|
Short-term
|
|
|
|
Long-term
|
|
|
|
Short-term
|
|
|
|
Long-term
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to improve the amortization profile, the Company continued its negotiations with creditors to define a new
amortization schedule. On December 20, 2019, the payment of $ 1.0 million dollars was made.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In July 2020, the rescheduling of payments for $3.0 million dollars was formalized, with a fixed rate of 11.25% with
monthly payments of interest and principal due in July 2021. The Company is in negotiations to improve the conditions and amortization profile of the balance of the current credit.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hewlett Packard
|
|
|
4,180
|
|
|
|
14,679
|
|
|
|
2,354
|
|
|
|
9,263
|
|
Two lines of credit for $607.8 dollars and $201.6 dollars, at a fixed rate of 6.84% and 6.13%, monthly payments of
principal and interest on unpaid balances and maturing in March and October 2024, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to face the effects of the Covid-19 pandemic, the Company obtained a grace period of 3 months in the payment of
principal for the months of May to July, extending the term of each credit line 3 months.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In order to continue with the Company’s technological transformation strategy, 3 additional simple credit lines were
contracted for $86.6 thousand dollars, $96.9 thousand dollars and $ 252.1 thousand dollars, at a fixed rate of 5.96%, 7.16% and 4.58% fixed annual, respectively, monthly payments of principal and interest on unpaid balances and
maturing in March, April and August 2025.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PNC, Bank, N.A.
|
|
|
3,429
|
|
|
|
10,287
|
|
|
|
3,246
|
|
|
|
12,987
|
|
Line of credit with collateral for $860 thousand dollars, at a fixed rate of 4.40%, semiannual payments of principal and interest on unpaid balances and maturing in July 2024.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payable
|
|
|
2,373
|
|
|
|
-
|
|
|
|
631
|
|
|
|
-
|
|
Total financial debt in US dollars
|
|
|
69,788
|
|
|
|
24,966
|
|
|
|
78,692
|
|
|
|
79,599
|
|
Total financial debt
|
|
$
|
129,085
|
|
|
$
|
53,644
|
|
|
$
|
139,189
|
|
|
$
|
118,737
|
|
|
(a)
|
They correspond to judicial and private agreements signed for the debt recognition with respect to Deposit Certificates secured and backed by Almacenadora de Depósito Moderno, S.A. de C.V. (ADEMSA), a related party.
|
Covenants
Some of the agreements related to the abovementioned loans contain certain covenants including the observance of certain financial ratios, restrictions on dividend payments, and sales of assets, among others. As of December 31, 2020, and
2019, Grupo TMM and subsidiaries complied with the covenants set forth in those contracts.
The interest expense on the financial debt was $38,558 and $69,796 for the periods of twelve months ended December 31, 2020 and 2019, respectively.
Grupo TMM, S.A.B. and Subsidiaries
|
46
|
The maturity of the long-term financial debt as of December 31, 2020 and 2019 is as follows:
Maturity
|
|
2020
|
|
|
2019
|
|
2021
|
|
$
|
-
|
|
|
$
|
57,017
|
|
2022
|
|
|
23,638
|
|
|
|
31,861
|
|
2023
|
|
|
16,315
|
|
|
|
25,427
|
|
2024
|
|
|
8,275
|
|
|
|
4,427
|
|
2025
|
|
|
2,703
|
|
|
|
5
|
|
2026
|
|
|
2,713
|
|
|
|
-
|
|
|
|
$
|
53,644
|
|
|
$
|
118,737
|
|
15
|
Balances and transactions with related parties
|
The accounts payable and transactions with related parties as of December 31, 2020 and 2019 are summarized as follows:
|
|
2020
|
|
|
2019
|
|
|
|
Receivable
|
|
|
Payable
|
|
|
Receivable
|
|
|
Payable
|
|
TMM División Marítima, S.A. de C.V. (a)
|
|
$
|
42,228
|
|
|
$
|
-
|
|
|
$
|
163,344
|
|
|
$
|
-
|
|
SSA México, S.A. de C.V. (b)
|
|
|
-
|
|
|
|
1,458
|
|
|
|
-
|
|
|
|
87,573
|
|
|
|
$
|
42,228
|
|
|
$
|
1,458
|
|
|
$
|
163,344
|
|
|
$
|
87,573
|
|
|
(a)
|
The accounts receivable is related to the maritime services provided to TMM DM by Grupo TMM. In September 2020, the Company agreed through an agreement with this related party to
forgive $98,859.
|
|
(b)
|
The accounts payables to SSA México, S.A. de C.V. are largely due to subagency services that this related party provides to Grupo TMM.
|
The most relevant transactions with related parties as of December 31, 2020, 2019 and 2018 are summarized as follows:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Maritime services (a)
|
|
$
|
131,137
|
|
|
$
|
159,772
|
|
|
$
|
187,426
|
|
Shipping agency services (b)
|
|
|
499
|
|
|
|
758
|
|
|
|
-
|
|
Leases (c)
|
|
|
-
|
|
|
|
-
|
|
|
|
66
|
|
|
|
$
|
131,636
|
|
|
$
|
160,530
|
|
|
$
|
187,492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs:
|
|
|
|
|
|
|
|
|
|
|
|
|
Sub-agency commissions (d)
|
|
$
|
107,692
|
|
|
$
|
264,743
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses (e)
|
|
$
|
440
|
|
|
$
|
391
|
|
|
$
|
366
|
|
|
(a)
|
Maritime services between TMM Dirección Corporativa, S.A. de C.V, subsidiary of Grupo TMM, and TMM DM.
|
|
(b)
|
Shipping agency services between Administradora Marítima TMM, S.A.P.I. de C.V., subsidiary of Grupo TMM, and TMM DM.
|
|
(c)
|
Grupo TMM, S.A.B. leasing operation with SSA México, S.A. de C.V. in Acapulco, Guerrero.
|
|
(d)
|
Shipping agency servicies provided by SSA México, S.A. de C.V. to Administradora Marítima TMM, S.A.P.I. de C.V.
|
|
(e)
|
Management consulting provided by SSA México, S.A. de C.V. to Administración Portuaria Integral de Acapulco, S.A. de C.V.
|
Grupo TMM, S.A.B. and Subsidiaries
|
47
|
Transactions involving executive personnel for the years ended December 31, 2020, 2019 and 2018, include the following expenses:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Short-term benefits
|
|
|
|
|
|
|
|
|
|
Salaries
|
|
$
|
36,003
|
|
|
$
|
40,851
|
|
|
$
|
33,790
|
|
Social security costs
|
|
|
1,633
|
|
|
|
497
|
|
|
|
462
|
|
|
|
$
|
37,636
|
|
|
$
|
41,348
|
|
|
$
|
34,252
|
|
16
|
Accounts payable and accrued expenses
|
Accounts payable and accrued expenses at December 31, 2020 and 2019, are shown as follows:
|
|
2020
|
|
|
2019
|
|
General expenses
|
|
$
|
259,151
|
|
|
$
|
212,595
|
|
Operating expenses
|
|
|
57,929
|
|
|
|
96,004
|
|
Purchased services
|
|
|
89,976
|
|
|
|
95,470
|
|
Taxes payable
|
|
|
38,281
|
|
|
|
37,637
|
|
Salaries and wages
|
|
|
924
|
|
|
|
3,256
|
|
Others
|
|
|
78,847
|
|
|
|
54,567
|
|
|
|
$
|
525,108
|
|
|
$
|
499,529
|
|
Capital stock
As of December 31, 2020, and 2019, the Company’s capital stock is comprised of 102,182,841 shares outstanding, registered, without par value, and with voting rights, which may be held by Mexican nationals, investors, or companies that
include in their bylaws the exclusion of foreigners clause. Foreigners may acquire economic rights in the Company’s common shares through ordinary participation certificates (‘CPOs’), with each CPO corresponding to one common share.
In the United States, the Company’s ADSs, each representing five CPOs, trade on the OTC market under the symbol GTMAY. The underlying TMM common shares for the ADSs are traded on the Mexican Stock Exchange under the listing code TMM A.
Grupo TMM, S.A.B. and Subsidiaries
|
48
|
Net tax profit account (CUFIN)
As of December 31, 2020, and 2019, the restated balance of the Net Taxable Income Account (CUFIN for its acronym in Spanish) of the Parent Company amounts to $3,727,180 and $3,613,359, respectively, which was generated up to December 31,
2013. No new balances have been generated in this account thereafter.
Dividends or earnings distributed to stockholders that are paid out of the CUFIN balance generated up to December 31, 2014 will not be subject to income tax until that balance is exhausted.
Dividends not drawn from the CUFIN, in addition to the above, will continue to be subject to income tax, paid by the entity, based on the general rate set by law, which is definitive and may be credited against the income tax for this
and the next two years. The balance in these accounts is susceptible to adjustment to the distribution date using the Mexican Consumers’ Price Index (INPC).
Capital decreases
As of December 31, 2020, and 2019, the current balance in the Capital Contribution Account (CUCA for its acronym in Spanish) is $4,868,700 y $4,720,020, respectively. In the event of capital reimbursement or decreases in favor of
stockholders, the surplus for said reimbursement on this amount will be treated as a distributed earning.
In the event the equity capital exceeds the balance in the CUCA, the difference will be considered a dividend or distributed earning subject to the payment of income tax. If the earnings in reference come from the CUFIN, there will be no
corporate tax due for the capital decrease or reimbursement. Otherwise, these will be treated as dividends or distributed earnings.
Other components of equity
Details of other components of equity as of December 31, 2020 and 2019, as follows:
|
|
Statutory
reserve
|
|
|
Defined
benefit
plan
|
|
|
Premium
on
convertible
obligations
|
|
|
Translation
result
|
|
|
Revaluation
surplus
|
|
|
|
Total
|
|
Balance as of December 31, 2018
|
|
$
|
216,948
|
|
|
$
|
(125,417
|
)
|
|
$
|
77,106
|
|
|
$
|
(247,668
|
)
|
|
$
|
785,975
|
|
|
|
$
|
706,944
|
|
Revaluation of assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
379,420
|
|
|
|
|
379,420
|
|
Defined benefit plan
|
|
|
-
|
|
|
|
2,354
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2,354
|
|
Reclassification from disposal of properties and depreciation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(202,228
|
)
|
(a)
|
|
|
(202,228
|
)
|
Total before taxes
|
|
|
-
|
|
|
|
2,354
|
|
|
|
-
|
|
|
|
-
|
|
|
|
177,192
|
|
|
|
|
179,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense
|
|
|
-
|
|
|
|
(706
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(113,826
|
)
|
|
|
|
(114,532
|
)
|
Total net of taxes
|
|
|
-
|
|
|
|
1,648
|
|
|
|
-
|
|
|
|
-
|
|
|
|
63,366
|
|
|
|
|
65,014
|
|
Balance as of December 31, 2019
|
|
|
216,948
|
|
|
|
(123,769
|
)
|
|
$
|
77,106
|
|
|
$
|
(247,668
|
)
|
|
$
|
849,341
|
|
|
|
$
|
771,958
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
49
|
|
|
|
Statutory
reserve
|
|
|
|
Defined
benefit
plan
|
|
|
|
Premium
on
convertible
obligations
|
|
|
|
Translation
result
|
|
|
|
Revaluation
surplus
|
|
|
|
|
Total
|
|
Revaluation of assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
314,436
|
|
(b)
|
|
|
314,436
|
|
Defined benefit plan
|
|
|
-
|
|
|
|
10,953
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
10,953
|
|
Reclassification from revaluation of assets
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
(55
|
)
|
(a)
|
|
|
(55
|
)
|
Total before taxes
|
|
|
-
|
|
|
|
10,953
|
|
|
|
-
|
|
|
|
-
|
|
|
|
314,381
|
|
|
|
|
325,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense
|
|
|
-
|
|
|
|
(3,286
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(94,331
|
)
|
|
|
|
(97,617
|
)
|
Total net of taxes
|
|
|
-
|
|
|
|
7,667
|
|
|
|
-
|
|
|
|
-
|
|
|
|
220,050
|
|
|
|
|
227,717
|
|
Balance as of December 31, 2020
|
|
$
|
216,948
|
|
|
$
|
(116,102
|
)
|
|
$
|
77,106
|
|
|
$
|
(247,668
|
)
|
|
$
|
1,069,391
|
|
|
|
$
|
999,675
|
|
|
(a)
|
It corresponds to the reclassification of the revaluation surplus to accumulated losses from the sale of properties and disposals of vessels, as well as the depreciation for the period of revaluation of properties and vessels.
|
|
(b)
|
Corresponds to the revaluation of the land of the project called “Liquid Storage Terminal”, derived from changes in the conditions of the project generated by obtaining permits, the revaluation allows the Management to know the
fair value of the property based on at its best use.
|
The revenues as of December 31, 2020, 2019 and 2018, are summarized as follows:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Maritime
|
|
|
|
|
|
|
|
|
|
Parcel tankers
|
|
$
|
340,767
|
|
|
$
|
287,140
|
|
|
$
|
312,305
|
|
Maritime administration services
|
|
|
131,136
|
|
|
|
159,772
|
|
|
|
187,426
|
|
Shipyard
|
|
|
100,864
|
|
|
|
164,917
|
|
|
|
138,517
|
|
Bulk carrier
|
|
|
85,085
|
|
|
|
162,897
|
|
|
|
144,664
|
|
Tugboats
|
|
|
-
|
|
|
|
81,707
|
|
|
|
70,037
|
|
Offshore vessels
|
|
|
93,373
|
|
|
|
12,072
|
|
|
|
56,506
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ports and terminals
|
|
|
|
|
|
|
|
|
|
|
|
|
Port services
|
|
|
41,659
|
|
|
|
90,144
|
|
|
|
101,688
|
|
Shipping agencies
|
|
|
27,530
|
|
|
|
79,695
|
|
|
|
64,283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Logistics, warehousing and other businesses
|
|
|
|
|
|
|
|
|
|
|
|
|
Repair of containers
|
|
|
196,584
|
|
|
|
211,171
|
|
|
|
234,534
|
|
Warehousing
|
|
|
139,042
|
|
|
|
171,867
|
|
|
|
160,991
|
|
Intermodal terminal
|
|
|
41,794
|
|
|
|
49,157
|
|
|
|
47,581
|
|
Automotive services
|
|
|
5,447
|
|
|
|
5,144
|
|
|
|
4,534
|
|
Total consolidated revenue
|
|
$
|
1,203,281
|
|
|
$
|
1,475,683
|
|
|
$
|
1,523,066
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
50
|
The Company’s revenues do not show any particular grouping characteristic, such as by type of customer (government and private), geographic zone, etc. The main grouping is shown based on the type of revenue for each segment. Moreover, as
discussed in Note 4.18, all of the Company’s revenues are recognized over time.
19
|
Other (expenses) income
|
Other (expenses) income as of December 31, 2020, 2019 and 2018, is summarized as follows:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Gain (loss) from the sale of subsidiaries (see Note 5)
|
|
$
|
451
|
|
|
$
|
279,744
|
|
|
$
|
111,484
|
|
Recoveries of taxes paid in prior years, net of expenses for recovery
|
|
|
(11,145
|
)
|
|
|
(16,595
|
)
|
|
|
(3,919
|
)
|
Cancellation of projects
|
|
|
(31,804
|
)
|
|
|
(18,944
|
)
|
|
|
(5,604
|
)
|
Forgiveness of accounts receivable
|
|
|
(98,859
|
)
|
|
|
-
|
|
|
|
-
|
|
Expenses related to the cancellation of the corporate building lease
|
|
|
(113,469
|
)
|
|
|
-
|
|
|
|
-
|
|
Goodwill impairment (see Note 5)
|
|
|
-
|
|
|
|
(9,826
|
)
|
|
|
-
|
|
Other, net
|
|
|
(2,399
|
)
|
|
|
(472
|
)
|
|
|
664
|
|
|
|
$
|
(257,225
|
)
|
|
$
|
233,907
|
|
|
$
|
102,625
|
|
20
|
Interest expense and other financial costs
|
This line at December 31, 2020, 2019 and 2018, is comprised as follows:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Interest on financial debt
|
|
$
|
38,558
|
|
|
$
|
69,796
|
|
|
$
|
80,580
|
|
Interest expense on leasing arrangements
|
|
|
33,535
|
|
|
|
70,225
|
|
|
|
-
|
|
Other financial expenses
|
|
|
2,066
|
|
|
|
5,303
|
|
|
|
2,146
|
|
Amortization of transaction cost associated with financial debt
|
|
|
1,495
|
|
|
|
1,551
|
|
|
|
2,164
|
|
|
|
$
|
75,654
|
|
|
$
|
146,875
|
|
|
$
|
84,890
|
|
21
|
Income tax and tax loss carryforwards
|
Income Tax
Results for the year
Grupo TMM and Subsidiaries incurred combined tax losses for the years ended December 2020 and 2019, in the amounts of $(383,647) and $(397,746), respectively. Most of the companies that generated taxable income fully offset them against
tax losses from prior years. Income tax recognized in profit or loss corresponds to subsidiaries that generated taxable income of $36,243 and $48,373, respectively.
The difference between taxable and book income is due primarily to the net effect of the gain or loss on inflation recognized for tax purposes, the difference between tax and book amortization and depreciation, non-deductible expenses,
as well as certain temporary differences reported in different periods for financial and tax purposes.
Grupo TMM, S.A.B. and Subsidiaries
|
51
|
In accordance with the currently enacted Income Tax Law, the rate for 2018, 2019, 2020, and subsequent years is 30%.
The provision for income tax recognized in the statement of profit or loss for the years ended December 31, 2020, 2019 and 2018, is as follows:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Income tax
|
|
$
|
(10,873
|
)
|
|
$
|
(14,512
|
)
|
|
$
|
(4,799
|
)
|
Income tax (agreement) (a)
|
|
|
-
|
|
|
|
(85,196
|
)
|
|
|
-
|
|
Deferred income tax
|
|
|
30,207
|
|
|
|
35,133
|
|
|
|
-
|
|
Total income tax expense
|
|
$
|
19,334
|
|
|
$
|
(64,575
|
)
|
|
$
|
(4,799
|
)
|
|
(a)
|
During 2019, Grupo TMM agreed with the Tax Administration Service to resolve the Company’s outstanding tax liabilities for the fiscal year 2010 through payment of 2.6 million pesos over a period of 36 months beginning in November
2019.
|
The reconciliation between the provision for income tax based on the statutory income tax rate and the provision recorded by the Company at December 31, 2020, 2019 and 2018, is as follows:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
(Loss) profit before taxes
|
|
$
|
(422,490
|
)
|
|
$
|
95,867
|
|
|
$
|
28,348
|
|
Income tax
|
|
|
126,747
|
|
|
|
(28,760
|
)
|
|
|
(8,504
|
)
|
Increase (decrease) from:
|
|
|
|
|
|
|
|
|
|
|
|
|
Difference in depreciation and amortization
|
|
|
(86,033
|
)
|
|
|
(180,395
|
)
|
|
|
(56,356
|
)
|
Revaluation surplus
|
|
|
94,331
|
|
|
|
113,826
|
|
|
|
(48,424
|
)
|
Income recognized in advance
|
|
|
-
|
|
|
|
-
|
|
|
|
(62
|
)
|
Materials and supplies
|
|
|
3,625
|
|
|
|
(31,073
|
)
|
|
|
(19,888
|
)
|
Inflationary and currency exchange effects on monetary assets and liabilities, net
|
|
|
(4,035
|
)
|
|
|
1,236
|
|
|
|
(26,686
|
)
|
Tax losses – net
|
|
|
12,054
|
|
|
|
19,277
|
|
|
|
206,485
|
|
Provisions and allowance for doubtful accounts
|
|
|
(78,527
|
)
|
|
|
54,214
|
|
|
|
(44,609
|
)
|
Forgiveness of accounts receivable
|
|
|
(29,658
|
)
|
|
|
-
|
|
|
|
-
|
|
Difference between the tax and book value for the sale of assets
|
|
|
(14,276
|
)
|
|
|
(13,133
|
)
|
|
|
(15,551
|
)
|
Difference between the tax and book value for the sale of shares of subsidiaries
|
|
|
(104
|
)
|
|
|
97,284
|
|
|
|
20,800
|
|
Non-deductible expenses
|
|
|
(4,790
|
)
|
|
|
(11,855
|
)
|
|
|
(12,004
|
)
|
Income tax (agreement)
|
|
|
-
|
|
|
|
(85,196
|
)
|
|
|
-
|
|
Benefit (provision) for income tax
|
|
$
|
19,334
|
|
|
$
|
(64,575
|
)
|
|
$
|
(4,799
|
)
|
Grupo TMM, S.A.B. and Subsidiaries
|
52
|
The components of deferred tax liability at December 31, 2020 and 2019, are comprised as follows:
|
|
2020
|
|
|
2019
|
|
Portion of tax loss carryforwards for subsequent years
|
|
$
|
350,272
|
|
|
$
|
338,218
|
|
Inventories and provisions – net
|
|
|
41,080
|
|
|
|
51,657
|
|
Concession rights and property, vessels and equipment
|
|
|
(706,976
|
)
|
|
|
(638,089
|
)
|
Total deferred tax liability
|
|
$
|
(315,624
|
)
|
|
$
|
(248,214
|
)
|
As of December 31, 2020, the Company’s Management carried out the evaluation of the amount of tax losses that will be recoverable and determined based on projections that the effect of the deferred tax asset determined in the year will
be realized at 51% based on the information available at the date of issuance of the consolidated financial statements.
Tax loss carryforwards
As of December 31, 2020, Grupo TMM and its subsidiaries, report the following cumulative tax losses, which are restated applying the National Consumer Price Index (NCPI) factors in accordance with Mexican law.
Year in which the
loss was incurrred
|
|
Amounts
|
|
|
Year of expiration
|
|
2011
|
|
$
|
66,483
|
|
|
|
2021
|
|
2012
|
|
|
168,689
|
|
|
|
2022
|
|
2013
|
|
|
199,466
|
|
|
|
2023
|
|
2014
|
|
|
142,463
|
|
|
|
2024
|
|
2015
|
|
|
69,170
|
|
|
|
2025
|
|
2016
|
|
|
410,181
|
|
|
|
2026
|
|
2017
|
|
|
103,125
|
|
|
|
2027
|
|
2018
|
|
|
216,620
|
|
|
|
2028
|
|
2019
|
|
|
491,902
|
|
|
|
2029
|
|
2020
|
|
|
434,618
|
|
|
|
2030
|
|
|
|
$
|
2,302,717
|
|
|
|
|
|
The Company operates in the following segments: i) specialized maritime transportation, ii) logistics, iii) ports and terminals and iv) warehousing. Specialized maritime transportation operations (‘Specialized Maritime Division’) include
transportation of bulk liquid products, materials and provisions for drilling platforms, and until December 31, 2019 towing services for ships. Logistics operations (‘Logistics Division’) include the
operations of logistics solutions services and container and railcar maintenance and repair services. Operations at ports and terminals (‘Ports and Terminals Division’) include loading and unloading, storage at maritime port terminals, and
shipping agency operations. Warehousing operations (‘Warehousing Division’) include storage and management of the facilities and bonded warehouses. There are no changes in the measuring methods used to calculate the earnings reported for
each segment. The information for each operating segment is as follow:
Grupo TMM, S.A.B. and Subsidiaries
|
53
|
|
|
Specialized
maritime division
|
|
|
Logistics
division
|
|
|
Ports and
terminals
division
|
|
|
Warehousing
division
|
|
|
Other
businesses
and shared
accounts
|
|
|
Total
consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
751,225
|
|
|
$
|
243,825
|
|
|
$
|
69,189
|
|
|
$
|
139,042
|
|
|
$
|
-
|
|
|
$
|
1,203,281
|
|
Costs and expenses
|
|
|
(634,919
|
)
|
|
|
(217,699
|
)
|
|
|
(74,521
|
)
|
|
|
(110,309
|
)
|
|
|
-
|
|
|
|
(1,037,448
|
)
|
Corporate expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(96,345
|
)
|
|
|
(96,345
|
)
|
Depreciation and amortization
|
|
|
(41,764
|
)
|
|
|
(22,571
|
)
|
|
|
(15,423
|
)
|
|
|
(45,261
|
)
|
|
|
(16,032
|
)
|
|
|
(141,051
|
)
|
Transportation profit (loss)
|
|
$
|
74,542
|
|
|
$
|
3,555
|
|
|
$
|
(20,755
|
)
|
|
$
|
(16,528
|
)
|
|
$
|
(112,377
|
)
|
|
$
|
(71,563
|
)
|
Costs, expenses and revenue not allocated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(331,593
|
)
|
Net profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(403,156
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets by operating segment
|
|
$
|
1,060,473
|
|
|
$
|
250,188
|
|
|
$
|
1,664,819
|
|
|
$
|
539,521
|
|
|
$
|
-
|
|
|
$
|
3,515,001
|
|
Shared assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
515,546
|
|
|
|
515,546
|
|
Total assets
|
|
$
|
1,060,473
|
|
|
$
|
250,188
|
|
|
$
|
1,664,819
|
|
|
$
|
539,521
|
|
|
$
|
515,546
|
|
|
$
|
4,030,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities by operating segment
|
|
$
|
363,098
|
|
|
$
|
141,723
|
|
|
$
|
498,233
|
|
|
$
|
345,091
|
|
|
$
|
-
|
|
|
$
|
1,348,145
|
|
Shared liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
434,994
|
|
|
|
434,994
|
|
Total liabilities
|
|
$
|
363,098
|
|
|
$
|
141,723
|
|
|
$
|
498,233
|
|
|
$
|
345,091
|
|
|
$
|
434,994
|
|
|
$
|
1,783,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures by segment
|
|
$
|
7,608
|
|
|
$
|
33
|
|
|
$
|
5,137
|
|
|
$
|
4,086
|
|
|
$
|
-
|
|
|
$
|
16,864
|
|
Shared capital expenditures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,511
|
|
|
|
11,511
|
|
Total capital expenditures
|
|
$
|
7,608
|
|
|
$
|
33
|
|
|
$
|
5,137
|
|
|
$
|
4,086
|
|
|
$
|
11,511
|
|
|
$
|
28,375
|
|
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
868,505
|
|
|
$
|
265,472
|
|
|
$
|
169,839
|
|
|
$
|
171,867
|
|
|
$
|
-
|
|
|
$
|
1,475,683
|
|
Costs and expenses
|
|
|
(652,157
|
)
|
|
|
(232,386
|
)
|
|
|
(122,882
|
)
|
|
|
(132,792
|
)
|
|
|
-
|
|
|
|
(1,140,217
|
)
|
Corporate expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(173,726
|
)
|
|
|
(173,726
|
)
|
Depreciation and amortization
|
|
|
(66,306
|
)
|
|
|
(19,474
|
)
|
|
|
(15,186
|
)
|
|
|
(41,516
|
)
|
|
|
(40,398
|
)
|
|
|
(182,880
|
)
|
Transportation profit (loss)
|
|
$
|
150,042
|
|
|
$
|
13,612
|
|
|
$
|
31,771
|
|
|
$
|
(2,441
|
)
|
|
$
|
(214,124
|
)
|
|
$
|
(21,140
|
)
|
Costs, expenses and revenue not allocated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,432
|
|
Net profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
31,292
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets by operating segment
|
|
$
|
1,285,751
|
|
|
$
|
266,079
|
|
|
$
|
1,763,135
|
|
|
$
|
386,418
|
|
|
$
|
-
|
|
|
$
|
3,701,383
|
|
Shared assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
862,392
|
|
|
|
862,392
|
|
Total assets
|
|
$
|
1,285,751
|
|
|
$
|
266,079
|
|
|
$
|
1,763,135
|
|
|
$
|
386,418
|
|
|
$
|
862,392
|
|
|
$
|
4,563,775
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities by operating segment
|
|
$
|
431,893
|
|
|
$
|
158,203
|
|
|
$
|
567,030
|
|
|
$
|
173,616
|
|
|
$
|
-
|
|
|
$
|
1,330,742
|
|
Shared liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
810,241
|
|
|
|
810,241
|
|
Total liabilities
|
|
$
|
431,893
|
|
|
$
|
158,203
|
|
|
$
|
567,030
|
|
|
$
|
173,616
|
|
|
$
|
810,241
|
|
|
$
|
2,140,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures by segment
|
|
$
|
12,048
|
|
|
$
|
598
|
|
|
$
|
24,086
|
|
|
$
|
494
|
|
|
$
|
-
|
|
|
$
|
37,226
|
|
Shared capital expenditures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,055
|
|
|
|
11,055
|
|
Total capital expenditures
|
|
$
|
12,048
|
|
|
$
|
598
|
|
|
$
|
24,086
|
|
|
$
|
494
|
|
|
$
|
11,055
|
|
|
$
|
48,281
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
54
|
|
|
Specialized
maritime
division
|
|
|
Logistics
division
|
|
|
Ports and
terminals
division
|
|
|
Warehousing
division
|
|
|
Other
businesses
and shared
accounts
|
|
|
Total
consolidated
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
909,455
|
|
|
$
|
286,649
|
|
|
$
|
165,971
|
|
|
$
|
160,991
|
|
|
$
|
-
|
|
|
$
|
1,523,066
|
|
Costs and expenses
|
|
|
(727,535
|
)
|
|
|
(248,364
|
)
|
|
|
(106,993
|
)
|
|
|
(165,388
|
)
|
|
|
(473
|
)
|
|
|
(1,248,753
|
)
|
Corporate expenses
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(198,404
|
)
|
|
|
(198,404
|
)
|
Depreciation and amortization
|
|
|
(59,451
|
)
|
|
|
(2,772
|
)
|
|
|
(9,616
|
)
|
|
|
(1,305
|
)
|
|
|
(7,133
|
)
|
|
|
(80,277
|
)
|
Transportation profit (loss)
|
|
$
|
122,469
|
|
|
$
|
35,513
|
|
|
$
|
49,362
|
|
|
$
|
(5,702
|
)
|
|
$
|
(206,010
|
)
|
|
$
|
(4,368
|
)
|
Costs, expenses and revenue not allocated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27,917
|
|
Net profit for the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
23,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets by operating segment
|
|
$
|
1,820,844
|
|
|
$
|
240,024
|
|
|
$
|
866,849
|
|
|
$
|
294,326
|
|
|
$
|
-
|
|
|
$
|
3,222,043
|
|
Shared assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
559,041
|
|
|
|
559,041
|
|
Total assets
|
|
$
|
1,820,844
|
|
|
$
|
240,024
|
|
|
$
|
866,849
|
|
|
$
|
294,326
|
|
|
$
|
559,041
|
|
|
$
|
3,781,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities by operating segment
|
|
$
|
887,042
|
|
|
$
|
159,956
|
|
|
$
|
280,473
|
|
|
$
|
66,583
|
|
|
$
|
-
|
|
|
$
|
1,394,054
|
|
Shared liabilities
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
262,772
|
|
|
|
262,772
|
|
Total liabilities
|
|
$
|
887,042
|
|
|
$
|
159,956
|
|
|
$
|
280,473
|
|
|
$
|
66,583
|
|
|
$
|
262,772
|
|
|
$
|
1,656,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total capital expenditures by segment
|
|
$
|
42,745
|
|
|
$
|
592
|
|
|
$
|
13,176
|
|
|
$
|
582
|
|
|
$
|
-
|
|
|
$
|
57,095
|
|
Shared capital expenditures
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
29,188
|
|
|
|
29,188
|
|
Total capital expenditures
|
|
$
|
42,745
|
|
|
$
|
592
|
|
|
$
|
13,176
|
|
|
$
|
582
|
|
|
$
|
29,188
|
|
|
$
|
86,283
|
|
Expense for employee benefits
The expenses recognized for employee benefits are:
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
Salaries, benefits and inherent
|
|
$
|
317,776
|
|
|
$
|
320,827
|
|
|
$
|
347,403
|
|
Pensions – defined benefit plans
|
|
|
23,623
|
|
|
|
22,873
|
|
|
|
21,211
|
|
|
|
$
|
341,399
|
|
|
$
|
343,700
|
|
|
$
|
368,614
|
|
The long-term liabilities recognized for pensions and other employee remunerations in the consolidated statement of financial position are comprised as follows:
|
|
2020
|
|
|
2019
|
|
Long-term:
|
|
|
|
|
|
|
Pensions and seniority premium
|
|
$
|
136,832
|
|
|
$
|
141,014
|
|
Termination of employment
|
|
|
13,365
|
|
|
|
10,467
|
|
|
|
$
|
150,197
|
|
|
$
|
151,481
|
|
The short-term liabilities for employee benefits, are included in the line ‘Accounts payable and accrued liabilities’ in the consolidated statements of financial position, which at December 31, 2020 and 2019, amount to $924 and $3,256,
respectively.
Grupo TMM, S.A.B. and Subsidiaries
|
55
|
Remunerations on the termination of employment
The seniority premiums and the retirement plan (‘pensions’) obligations are based on actuarial calculations using the projected unit credit method. Pension benefits are based mainly on years of service, age, and salary level upon
retirement.
The amounts charged to operations include the amortization of the cost of past services over the average time of service remaining. The Company continues with its policy of recognizing actuarial losses and gains for seniority premiums
and pensions in the consolidated statement of operations, the actuarial (loss) gain net of taxes for 2020 and 2019 was $7,667 and $1,648, respectively.
The plan exposes Grupo TMM to such risks as interest rate, investment, mortality, and inflation.
Interest rate risk
The present value of the defined benefits obligation is calculated using a discount rate making reference to the market performance of high-quality corporate bonds.
The estimated term for the bonds is consistent with the estimated term for the defined benefits obligation and is denominated in pesos. A decrease in the market performance of high-quality corporate bonds will increase the defined
benefits obligation of the Company, although this is expected to be partially compensated by an increase in the fair value of certain of the plan’s assets.
Investment risk
The plan assets are predominantly capital and debt instruments traded on the Mexican Stock Exchange which are considered low risk.
Mortality risk
The Company provides benefits for life to those who are covered by the defined benefits liability. An increase in the life expectancy of such persons will increase the defined benefits liability.
Inflation risk
A significant proportion of the defined benefits obligation is linked to inflation. An increase in the inflation rate will increase the Company’s obligation.
The details of the net cost for the period for seniority premiums and termination of employment, and also the basic actuarial estimates for the calculation of these labor obligations is shown as follows:
|
|
2020
|
|
|
2019
|
|
|
|
Pensions and
seniority
premiums
|
|
|
Termination
of
employment
|
|
|
Pensions and
seniority
premiums
|
|
|
Termination
of
employment
|
|
Current service cost
|
|
$
|
4,541
|
|
|
$
|
1,727
|
|
|
$
|
4,709
|
|
|
$
|
2,178
|
|
Interest cost
|
|
|
11,892
|
|
|
|
867
|
|
|
|
13,643
|
|
|
|
2,343
|
|
Net cost for the period
|
|
$
|
16,433
|
|
|
$
|
2,594
|
|
|
$
|
18,352
|
|
|
$
|
4,521
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
56
|
At December 31, 2020 and 2019, the reserve for pensions and seniority premiums, and also for the termination of employment, is comprised as follows:
|
|
2020
|
|
|
2019
|
|
|
|
Pensions and
seniority
premiums
|
|
|
Termination
of
employment
|
|
|
Pensions and
seniority
premiums
|
|
|
Termination
of
employment
|
|
Defined benefit obligations
|
|
$
|
139,763
|
|
|
$
|
13,365
|
|
|
$
|
144,044
|
|
|
$
|
10,467
|
|
Plan assets
|
|
|
(2,931
|
)
|
|
|
-
|
|
|
|
(3,030
|
)
|
|
|
-
|
|
Total reserve
|
|
$
|
136,832
|
|
|
$
|
13,365
|
|
|
$
|
141,014
|
|
|
$
|
10,467
|
|
As of December 31, 2020, and 2019, the defined benefit obligations (DBO) for pensions and seniority premiums, and also for the reserve for termination of employment, are comprised as follows:
|
|
2020
|
|
|
2019
|
|
|
|
Pensions and
seniority
premiums
|
|
|
|
Termination
of
employment
|
|
|
Pensions and
seniority
premiums
|
|
|
Termination
of
employment
|
|
DBO at beginning of period
|
|
$
|
144,044
|
|
|
|
$
|
10,467
|
|
|
$
|
154,128
|
|
|
$
|
25,604
|
|
Current service cost
|
|
|
4,541
|
|
|
|
|
1,727
|
|
|
|
4,709
|
|
|
|
2,178
|
|
Interest cost
|
|
|
11,892
|
|
|
|
|
867
|
|
|
|
13,643
|
|
|
|
2,343
|
|
Benefits paid
|
|
|
(2,072
|
)
|
|
|
|
(70
|
)
|
|
|
(338
|
)
|
|
|
-
|
|
Benefits paid from plan assets
|
|
|
(7,315
|
)
|
|
|
|
-
|
|
|
|
(7,617
|
)
|
|
|
-
|
|
Miscellaneous
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(304
|
)
|
|
|
-
|
|
Past service cost
|
|
|
-
|
|
|
|
|
-
|
|
|
|
(16,822
|
)
|
|
|
(21,365
|
)
|
Actuarial gain or losses
|
|
|
(11,327
|
)
|
|
|
|
374
|
|
|
|
(3,355
|
)
|
|
|
1,707
|
|
DBO at end of period
|
|
$
|
139,763
|
|
|
|
$
|
13,365
|
|
|
$
|
144,044
|
|
|
$
|
10,467
|
|
The plan assets as of December 31, 2020 and 2019 are comprised as follows:
|
|
2020
|
|
|
2019
|
|
Value of the fund at beginning of year
|
|
$
|
3,030
|
|
|
$
|
3,126
|
|
Expected return on assets
|
|
|
(356
|
)
|
|
|
310
|
|
Plan contributions
|
|
|
7,315
|
|
|
|
7,617
|
|
Benefits paid
|
|
|
(7,315
|
)
|
|
|
(7,617
|
)
|
Interests on plan assets
|
|
|
257
|
|
|
|
208
|
|
Miscellaneous
|
|
|
-
|
|
|
|
(614
|
)
|
Found value at end of the year
|
|
$
|
2,931
|
|
|
$
|
3,030
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
57
|
The changes in the pension plan, seniority premium, and termination of employment plan as of December 31, 2020 and 2019 are as follows:
|
|
2020
|
|
|
2019
|
|
Reserve for obligations at the beginning of the period
|
|
$
|
151,481
|
|
|
$
|
176,606
|
|
Cost for the period
|
|
|
19,027
|
|
|
|
22,873
|
|
Interest income
|
|
|
(257
|
)
|
|
|
(208
|
)
|
Contributions to the plan
|
|
|
(7,315
|
)
|
|
|
(7,617
|
)
|
Benefits paid on pension plan
|
|
|
(2,142
|
)
|
|
|
(338
|
)
|
Miscellaneous
|
|
|
356
|
|
|
|
-
|
|
Actuarial gain or losses
|
|
|
(10,953
|
)
|
|
|
(1,648
|
)
|
Past service cost
|
|
|
-
|
|
|
|
(38,187
|
)
|
Reserve for obligations at the end of the period
|
|
$
|
150,197
|
|
|
$
|
151,481
|
|
The significant actuarial assumptions used for the valuation are:
|
|
2020
|
|
|
2019
|
|
Discount rate
|
|
|
7.50
|
%
|
|
|
8.50
|
%
|
Salary increase rate
|
|
|
4.00
|
%
|
|
|
4.00
|
%
|
Inflation rate
|
|
|
3.50
|
%
|
|
|
3.50
|
%
|
Average working life expectancy
|
|
|
16.10
|
|
|
|
18.30
|
|
These assumptions were prepared by Management with the assistance of independent actuaries. The discount factors are determined near the end of each year making reference to the market performance of high-quality corporate bonds
denominated in the currency in which the benefits will be paid and which have similar maturities to the terms for the pension obligation corresponding. Other assumptions are based on actual reference parameters and Management’s historical
experience.
On December 31, 2020 and 2019, approximately 12% and 18% of the Company’s employees work under collective work contracts that are subject to annual salary reviews and biannually for other compensations. As of December 31, 2020, and 2019,
Grupo TMM has 934 and 1,099 employees, respectively.
The significant actuarial assumptions to determine the defined benefits obligation are the discount rate, the salary increase rate, and the average life expectancy. The calculation of the defined benefits obligation is sensitive to these
assumptions.
The following table summarizes the effects of changes to these actuarial assumptions on the defined benefits obligations at December 31, 2020:
|
|
1.0% increase
|
|
|
1.0% decrease
|
|
Discount rate
|
|
|
|
|
|
|
(Decrease) increase in the defined benefits obligation
|
|
$
|
(54
|
)
|
|
$
|
6,958
|
|
|
|
|
|
|
|
|
|
|
Salary increase rate
|
|
|
|
|
|
|
|
|
Increase (decrease) in the defined benefits obligation
|
|
$
|
5,711
|
|
|
$
|
(678
|
)
|
Grupo TMM, S.A.B. and Subsidiaries
|
58
|
|
|
One year
Increase
|
|
|
One year
Decrease
|
|
Average life expectancies
|
|
|
|
|
|
|
Increase (decrease) in the defined benefits obligation
|
|
$
|
3,426
|
|
|
$
|
(3,940
|
)
|
The present value of the defined benefits obligation and also the defined benefits obligation recognized in the consolidated statement of financial position are calculated using the same method (projected unit credit). The sensitivity
analyses are based on a change in one assumption without changing the others. This sensitivity analysis may not be representative of the real variance in the defined benefits obligation, as it is unlikely that the change to the assumptions
would occur on its own, as some of the assumptions may be correlated.
As of December 31, 2020, 2019 and 2018, earnings per share was determined based on the weighted average number of shares outstanding during the year. There are no potentially dilutive instruments outstanding, therefore basic and diluted
earnings per share are the same.
25
|
Fair value measurement
|
Fair value measures for non-financial assets
The non-financial assets and liabilities measured at fair value in the statement of financial position are grouped into three levels of fair value hierarchy. The three levels are defined based on the observability of relevant data for
the measuring, as follows:
|
•
|
Level 1: quoted prices (without adjustment) in active markets for identical assets and liabilities.
|
|
•
|
Level 2: data other than the quoted prices included in Level 1 that are observable for the asset and liability, either directly or indirectly;
|
|
•
|
Level 3: non-observable data for the asset or liability.
|
As of December 31, 2020 and 2019 non-financial assets measured at fair value are classified in Level 3 of this hierarchy, as described below:
|
|
2020
|
|
|
2019
|
|
Level 3
|
|
|
|
|
|
|
Vessels
|
|
$
|
182,055
|
|
|
$
|
214,938
|
|
Buildings
|
|
|
286,232
|
|
|
|
299,660
|
|
Land
|
|
|
1,934,345
|
|
|
|
1,597,923
|
|
|
|
$
|
2,402,632
|
|
|
$
|
2,112,521
|
|
As of December 31, 2020, the values of the Company’s land, buildings and facilities were estimated based on appraisals performed by independent, professionally qualified property valuers.
As of December 31, 2020, and 2019, the revalued amounts for all the vessels were determined using the revenue technique.
Grupo TMM, S.A.B. and Subsidiaries
|
59
|
The important information and assumptions are prepared in close collaboration with Management. The valuation processes and changes in the fair value are reviewed by the Administration and Finance Department on the financial reporting
date. Additional information on fair value measurement is as follows.
Vessels (Level 3)
The fair values for the offshore vessels, and parcel tankers are estimated based on revenue that capitalizes the estimated revenue cash flows from the leasing of vessels net of operating costs projected, using an appropriate discount
rate that reflects the required performance for similar assets. Cash flows are calculated based on the average of international charter rates and operating costs (including maintenance), and also the historical utilization level. The value
of vessels is sensitive to changes in these variables.
The most significant information, which is not observable, is the value of the estimated daily rates, the assumptions for the percentage of utilization and the discount rate. The fair value increases if the estimated daily rates and the
percentage of utilization increase or if the discount rate (market yields) decreases. The appraisals in general are sensitive to these three assumptions.
Management believes that the range of reasonably possible alternatives is greater for the value of the rates and the percentage of use, and also that there is a correlation between these factors.
The information used for the measurement of fair value as of December 31, 2020 was:
|
|
Offshore vessels
|
|
|
Parcel tankers
|
|
Daily rate or fee
|
|
4,504 usd
|
|
|
15,805 usd
|
|
Average percentage of utilization
|
|
|
78
|
%
|
|
|
89
|
%
|
Discount rate
|
|
|
7.44
|
%
|
|
|
7.65
|
%
|
Buildings and land (Level 3)
The valuation was prepared based on a market focus that reflects the prices observed on recent market transactions involving similar properties and incorporates adjustments for factors specific to the property in question, including land
size, location, liens, and current use.
The most significant information used, which is not observable, is the adjustment for factors specific to the properties in question. The magnitude and direction of this adjustment depends on the characteristics of observable market
transactions for similar properties used as the end point for the valuation. Although this information is subjective, Management considers that the global valuation will not be materially affected by reasonably possible alternatives.
Grupo TMM, S.A.B. and Subsidiaries
|
60
|
As of December 31, 2020, and 2019, the reconciliation between the carrying amounts of non-financial assets classified within Level 3 is as follows:
|
|
Vessels
|
|
|
Buildings
andFacilities
|
|
Balance as of January 1, 2020
|
|
$
|
214,938
|
|
|
$
|
1,897,583
|
|
Amount recognized in other comprehensive income:
|
|
|
|
|
|
|
|
|
Revaluation surplus of vessels
|
|
|
-
|
|
|
|
330,571
|
|
Amount recognized in statements profit or loss:
|
|
|
|
|
|
|
|
|
Loss on revaluation of vessels
|
|
|
(16,136
|
)
|
|
|
-
|
|
|
|
|
(16,136
|
)
|
|
|
330,571
|
|
Additions and disposals, net
|
|
|
(16,747
|
)
|
|
|
(7,577
|
)
|
Balance as of December 31, 2020
|
|
$
|
182,055
|
|
|
$
|
2,220,577
|
|
Balance as of January 1, 2019
|
|
$
|
782,673
|
|
|
$
|
1,385,153
|
|
Amount recognized in other comprehensive income:
|
|
|
|
|
|
|
|
|
Revaluation surplus of vessels
|
|
|
41,026
|
|
|
|
377,593
|
|
Amount recognized in statements profit or loss:
|
|
|
|
|
|
|
|
|
Loss on revaluation of vessels
|
|
|
(39,199
|
)
|
|
|
-
|
|
|
|
|
1,827
|
|
|
|
377,593
|
|
Additions and disposals, net
|
|
|
(569,562
|
)
|
|
|
134,837
|
|
Balance as of December 31, 2019
|
|
$
|
214,938
|
|
|
$
|
1,897,583
|
|
As of December 31, 2020, and 2019, there were no effects from unrealized gains from fair value measurements.
26
|
Financial instruments risk
|
Risk management objectives and policies
Grupo TMM is exposed to various risks in relation to financial instruments. The Company’s financial assets and liabilities by category are summarized in Note 14. The main types of risks are market risk, credit risk and liquidity risk.
The Company’s risk management is coordinated at its headquarters, in close cooperation with the board of directors, and focuses on actively securing short to medium-term cash flows by minimizing the exposure to volatile financial
markets.
The Company does not actively engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risk to which the Company is exposed are described below:
Grupo TMM, S.A.B. and Subsidiaries
|
61
|
Market risk
Currency risk
The monetary position for Grupo TMM may be materially affected by variances in the exchange rate between the US dollar and the Mexican peso due to the Company’s significant operations in Mexico. The Company does not cover this exposure.
Grupo TMM minimizes its exposure effects in foreign currency by contracting financial debt in Mexican pesos.
Grupo TMM also faces transactional currency exposure. This exposure derives from sales and acquisitions made in currencies other than Mexican pesos, Grupo TMM’s functional currency. As of December 31, 2020 and 2019, approximately 55% and
45% of Grupo TMM’s sales are denominated in US dollars, respectively while approximately 20% and 25% of the costs and expenses for both years are denominated in US dollars.
As of December 31, 2020 and 2019, the Company held monetary assets and liabilities denominated in foreign currencies other than the Mexican peso, translated at the corresponding interbank exchange rate as related to the Mexican peso, as
follows:
|
|
2020
|
|
|
2019
|
|
|
|
US dollar
|
|
|
Other
currencies
|
|
|
US dollar
|
|
|
Other
currencies
|
|
Assets
|
|
$
|
309,657
|
|
|
$
|
932
|
|
|
$
|
547,320
|
|
|
$
|
1,093
|
|
Liabilities
|
|
|
(480,253
|
)
|
|
|
(1,372
|
)
|
|
|
(1,042,661
|
)
|
|
|
(1,641
|
)
|
|
|
$
|
(170,596
|
)
|
|
$
|
(440
|
)
|
|
$
|
(495,341
|
)
|
|
$
|
(548
|
)
|
As of December 31, 2020 and 2019, the exchange rate was Ps19.9352 and Ps18.8727 6 per US dollar, respectively.
Sensitivity analysis
The following table shows for the years ended December 31, 2020 and 2019, the sensitivity in profit or loss related to the financial assets and liabilities of Grupo TMM and the exchange rate; United States dollar (USD) / peso
‘considering that the rest of the conditions remain the same’, assumes a change of +/- 11.64% for 2020 and +/- 22.10% for 2019 in the peso / USD exchange rate.
This percentage was determined based on the volatility of the average exchange rate market over the past 12 months. The sensitivity analysis is based on financial instruments in foreign currency held by Grupo TMM on the reporting date.
Grupo TMM, S.A.B. and Subsidiaries
|
62
|
If the peso had strengthened or weakened against the USD by 11.64% for 2020 and 22.10% for 2019, this would have had the following impact on the monetary position:
|
|
2020
|
|
|
2019
|
|
|
|
11.64%
Increase in
the exchange
rate
|
|
|
11.64%
Decrease in
the exchange
rate
|
|
|
22.10%
Increase in the
exchange rate
|
|
|
22.10%
Decrease in
the exchange
rate
|
|
Assets in US dollars
|
|
$
|
36,030
|
|
|
$
|
(36,030
|
)
|
|
$
|
120,944
|
|
|
$
|
(120,944
|
)
|
Assets in other currencies
|
|
|
108
|
|
|
|
(108
|
)
|
|
|
242
|
|
|
|
(242
|
)
|
Liabilities in US dollars
|
|
|
(55,880
|
)
|
|
|
55,880
|
|
|
|
(230,401
|
)
|
|
|
230,401
|
|
Liabilities in other currencies
|
|
|
(160
|
)
|
|
|
160
|
|
|
|
(363
|
)
|
|
|
363
|
|
|
|
$
|
(19,902
|
)
|
|
$
|
19,902
|
|
|
$
|
(109,578
|
)
|
|
$
|
109,578
|
|
The exposure to exchange rates varies during each year, depending on the volume of overseas operations or in foreign currency; however, the above analysis is considered representative of Grupo TMM’s exposure to currency risk.
Interest rate risks
Grupo TMM’s exposure to the risk of changes in market interest rates is related principally to the long-term debt obligations of Grupo TMM at a variable interest rate.
Grupo TMM’s policy is to obtain fixed rated instruments on its loans and, when a loan has a variable interest rate, the Company’s policy is to obtain all needed derivative financial instruments in order to fix this rate. At December 31,
2020 and 2019, the Company has $129.8 and $50.2 million pesos of debt contracted on fixed and variable rates, respectively. At December 31, 2020 and 2019, the debt contracted on fixed and variable rates was $103.0 and $159.1 million pesos,
respectively.
Sensitivity analysis
The following table illustrates the sensitivity in profit or loss at December 31, 2020 and 2019 to a reasonably possible change in the interest rates of +/- 8.24% and +/- 7.05%, respectively. These changes are considered to be reasonably
possible based on the current market conditions.
The calculations are based on a variance in the average market interest rate for each period and the financial instruments on the reporting date that are sensitive to variances in the interest rates. The rest of the variables remain
constant.
|
|
2020
|
|
|
2019
|
|
|
|
+8.24%
Variance
|
|
|
-8.24%
Variance
|
|
|
+7.05%
Variance
|
|
|
-7.05%
Variance
|
|
Profit or loss for the year
|
|
$
|
(1,140
|
)
|
|
$
|
1,140
|
|
|
$
|
(1,698
|
)
|
|
$
|
1,698
|
|
The impact shown in the above sensitivity is considered the same both in the results of profit or loss and in stockholders’ equity.
Grupo TMM, S.A.B. and Subsidiaries
|
63
|
Concentration of risk
For the year ended December 31, 2020, the Company obtained revenues from TMM DM (related party), Celanse Operations Mexico and Helmsley Management, representing 14%, 13% and 7%, respectively. None of the remaining customers represent
more than 4% of its total revenues. For the year ended December 31, 2019, the Company obtained revenues from TMM DM (related party), Helmsley Management and Celanese Operations Mexico, representing 17%, 11%, and 7%, respectively. None of
the remaining customers represents more than 4% of the total revenues.
Credit risk
Credit risk is managed on a group basis, based on the credit risk management policies and procedures of Company.
Credit risk with respect to cash balances maintained in banks and sight deposits is managed through diversification of bank deposits that are only made with high credited financial institutions. For other receivables, other than trade
accounts receivable and contractual assets, the balances are considered immaterial and whose risk of default is null.
The Company continuously monitors the creditworthiness of customers, based on its experience and customer profiles defined by Management. The Company’s policy is to deal only with creditworthy counterparties. Credit terms range between
30 and 90 days. Credit terms negotiated with customers are subject to an internal approval process that considers the experience and profile of the customer. Current credit risk is managed by a periodic review of the accounts receivable
aging analysis, together with credit limits per customer.
Trade accounts receivable consist of a large number of customers in various industries and geographical areas.
Guarantees (collateral)
The Company does not maintain any guarantee on its trade accounts receivable. In addition, the Company does not have guarantees related to other financial assets (i.e., other receivables, cash and cash equivalents held in banks).
Trade accounts receivable
Grupo TMM applies the IFRS 9 simplified model of recognizing lifetime expected credit losses for all trade receivables as these items do not have a significant financing component.
In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due and also according to the
geographical location of customers.
Expected credit loss rates are based on the sales payment profile over the last 48 months prior to December 2020 and 2019, respectively, as well as the corresponding historical credit losses during that period. Historical rates are
adjusted to reflect current and future macroeconomic factors that affect the customer’s ability to liquidate the unpaid balance.
Grupo TMM, S.A.B. and Subsidiaries
|
64
|
Trade receivables are written off (i.e. derecognized) when there is no reasonable expectation of recovery. Failure to make payments within 180 days from the invoice date and failure to engage with the Company on alternative payment
arrangement amongst other is considered indicators of no reasonable expectation of recovery. However, industry and client’s practices could generate balances with more than 180 days of aging, for which conclusion is that those balances will
be collected.
Pursuant to the foregoing, the expected credit loss for trade accounts receivable as of December 31, 2020 and 2019 was determined as follows:
|
|
Trade accounts receivable days in arrears
|
|
|
|
Current
|
|
|
More than
30 days
|
|
|
More than
60 days
|
|
|
More than
90 days
|
|
|
Total
|
|
As of December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected credit loss rate
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
32.7
|
%
|
|
|
-
|
|
Gross carrying value
|
|
$
|
77,030
|
|
|
$
|
5,875
|
|
|
$
|
4,290
|
|
|
$
|
64,841
|
|
|
$
|
152,036
|
|
Expected credit losses during the lifetime
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21,218
|
|
|
|
21,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected credit loss rate
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
|
|
2.3
|
%
|
|
|
27.4
|
%
|
|
|
-
|
|
Gross carrying value
|
|
$
|
214,850
|
|
|
$
|
18,398
|
|
|
$
|
7,976
|
|
|
$
|
51,748
|
|
|
$
|
292,972
|
|
Expected credit losses during the lifetime
|
|
|
|
|
|
|
|
|
|
|
185
|
|
|
|
14,200
|
|
|
|
14,385
|
|
Liquidity risk
The goal of Grupo TMM is to maintain a balance between the continuity of loans and flexibility through the use of bank loans and securitizations. As of December 31, 2020, and 2019, only 35% and 24%, respectively, of Grupo TMM’s financial
liabilities are due within the next 12 months.
As of December 31, 2020, and 2019, the financial liabilities of Grupo TMM have contractual maturities (including interest payments as applicable) are summarized as follows:
|
|
Current
|
|
|
Non-Current
|
|
|
|
In 6 months
|
|
|
6 to 12
Months
|
|
|
1 to 4 years
|
|
|
More than 4
Years
|
|
At December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
$
|
228,959
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Accounts payable and accrued expenses
|
|
|
-
|
|
|
|
525,108
|
|
|
|
23,522
|
|
|
|
-
|
|
Leasing liabilities
|
|
|
29,465
|
|
|
|
28,780
|
|
|
|
193,811
|
|
|
|
103,457
|
|
Financial debt
|
|
|
52,125
|
|
|
|
76,960
|
|
|
|
48,227
|
|
|
|
5,417
|
|
|
|
$
|
310,549
|
|
|
$
|
630,848
|
|
|
$
|
265,560
|
|
|
$
|
108,874
|
|
Grupo TMM, S.A.B. and Subsidiaries
|
65
|
|
|
Current
|
|
|
Non-Current
|
|
|
|
In 6 months
|
|
|
6 to 12
Months
|
|
|
1 to 4 years
|
|
|
More than 4
Years
|
|
At December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables
|
|
$
|
-
|
|
|
$
|
262,159
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Accounts payable and accrued expenses
|
|
|
-
|
|
|
|
499,529
|
|
|
|
46,742
|
|
|
|
-
|
|
Leasing liabilities
|
|
|
34,908
|
|
|
|
25,670
|
|
|
|
130,238
|
|
|
|
396,543
|
|
Financial debt
|
|
|
55,139
|
|
|
|
84,050
|
|
|
|
113,288
|
|
|
|
5,449
|
|
|
|
$
|
90,047
|
|
|
$
|
871,408
|
|
|
$
|
290,268
|
|
|
$
|
401,992
|
|
The above amounts reflect the contractual cash flows without discount, which may differ from the values registered in the liabilities on the reporting date.
27
|
Capital management policies and procedures
|
Grupo TMM’s capital management goal is to ensure the capacity of Grupo TMM to continue as a going concern and to provide its stockholders with an appropriate return on their investment. The Company monitors capital based on the carrying
value plus its financial debt.
The Company sets its capital amount proportionate to its overall financing structure, meaning, the capital and financial liabilities that are not loans. Grupo TMM manages the capital structure and makes adjustments in light of changes in
the economic conditions and the associated risks of the underlying assets. In order to maintain or adjust the capital structure, Grupo TMM may adjust the amount of capital reimbursements to stockholders, or issue new shares or sell assets
to reduce its financial debt.
As of December 31, 2020, and 2019, the capital management is summarized as follows:
|
|
2020
|
|
|
2019
|
|
Stockholders’ equity
|
|
$
|
2,247,408
|
|
|
$
|
2,422,792
|
|
Cash and cash equivalents
|
|
|
(142,982
|
)
|
|
|
(512,799
|
)
|
Stockholders’ equity, net
|
|
$
|
2,104,426
|
|
|
$
|
1,909,993
|
|
|
|
|
|
|
|
|
|
|
Total financial debt
|
|
$
|
182,729
|
|
|
$
|
257,926
|
|
Leasing liabilities
|
|
|
355,513
|
|
|
|
587,359
|
|
Overall financing
|
|
$
|
538,242
|
|
|
$
|
845,285
|
|
|
|
|
|
|
|
|
|
|
Capital-to-overall financing ratio
|
|
|
3.91
|
|
|
|
2.26
|
|
28
|
Commitments and contingencies
|
Commitments
Pursuant to the concession to operate the cruise and automobile terminal in the Port of Acapulco, Guerrero, the Company must make fixed and variable monthly payments. These payments totaled $7,507 and $7,536, in the years of 2020 and
2019, respectively.
Grupo TMM, S.A.B. and Subsidiaries
|
66
|
Contingencies
On August 7, 2007, Transportación Marítima Mexicana, S.A. de C.V. (‘TMM’) filed a claim for arbitration against Refined Product Services (“RPS”) for US$50 thousand, for various expenses incurred by TMM due to the delay of the re-delivery
of the tanker vessel Palenque.
On October 19, 2007, RPS filed a countersuit for US$3.0 million, for alleged faults and lack of maintenance involving the tanker vessel Palenque, and also consequential damages for having lost a contract while the vessel was being
repaired. The consolidated financial statements did not present any significant claims for payments of loss (RPS) during 2019, 2020 and up to the authorization date hereof.
The Company’s Management and its legal advisors consider the position against this countersuit is strong, as there are sufficient elements and arguments for defense, also the amount claimed by RPS would appear to be excessive and for
non-supported issues.
b)
|
Mutual loans between WWS y TMM
|
In December 2007, TMM and Worldwide Services, Ltd. (“WWS”) filed mutual claims; TMM for $394 thousand dollars, claiming fuel and low return on the performance of the tanker ship Veracruz A, and WWS in the amount of $938 thousand dollars,
primarily claiming a presumed over-performance of the same ship.
As of the date of the authorization of the consolidated financial statements, total claims against TMM amount to $2.4 million dollars. However, those claims are considered weak.
TMM filed an appeal to have the case dismissed, claiming that the Court has no jurisdiction since the arbitration proceedings were initiated with the wrong plaintiff’s name. In January 2017, a ‘partial award’ was issued in which the
dismissal of the case was not granted. WWS presented a ‘claim submission’ discounting certain claims, to which TMM responded, requesting a “security of costs” from WWS; same that WWS never presented. Therefore, on March 2, 2021 TMM was
notified of the award by which the court dismissed the case. This matter is closed.
c)
|
Tax liabilities determined on TMM
|
Suit filed by TMM against the rulings handed down on which various tax liabilities were determined for presumed omitted income tax, corresponding to tax year 2005.
On November 5, 2012, the appeal for annulment was allowed to proceed before the former Federal Court of Tax and Administrative Justice. That appeal for annulment was forwarded for study and resolution to the Metropolitan Regional First
Division of the Federal Court of Tax and Administrative Justice.
On January 30, 2018, TMM was notified of the decision whereby the matter was forwarded to the Full Federal Tax Court of Administrative Justice sitting in Mexico City, and in February 2020, a favorable judgment was issued for the
interests of the Company.
Grupo TMM, S.A.B. and Subsidiaries
|
67
|
d)
|
Motions for Annulment against various tax provisions
|
During 2017 and 2016, Grupo TMM filed Motions for Annulment with the Federal Court of Administrative Justice against various decisions of the Tax Administration Service (SAT), on the rejection of deductions (tax year 2007), modifications
to the Consolidation Regime for controlled companies (tax year 2005), deferred income tax on consolidation (tax year 2010), and the termination of the consolidation regime (tax year 2013), on which rulings have not been handed down by the
courts with competent jurisdiction. Grupo TMM believes its legal position is strong and a ruling favorable to the interests of the Company is expected.
e)
|
Other legal proceedings
|
The Company is party to various other legal proceedings and administrative actions, all of which are of an ordinary or routine nature and incidental to its operations. Although it is impossible to predict the outcome of any legal
proceeding, in the opinion of the Company’s management, such proceedings and actions should not, individually or in the aggregate, have a material adverse effect on the Company’s financial condition, results of operations or liquidity.
f)
|
Operations with related parties
|
Under the Income Tax Law, companies that conduct operations with related parties, nationals or nonresidents, are subject to fiscal limitations and obligations regarding the determination of the prices negotiated, as these must be
comparable to those that would be used with or between independent parties on similar operations.
In the event the tax authorities were to review the prices and reject the amounts determined, they may demand, an addition to the taxes and accessory charges corresponding (adjustments and surcharges), fines on omitted taxes, which could
be for up to 100% of the adjusted tax amount.
The Company has significant transactions and relations with related parties, for which the Company holds documentation that confirms the terms of these transactions were conducted in 2020 similarly to transactions between unrelated
parties. The Company and its subsidiaries are in the process of completing this study for 2020.
Grupo TMM and Subsidiaries are subject to the laws and ordinances of other countries, as well as international regulations governing maritime transportation and the observance of safety and environmental regulations.
29
|
Subsequent events to the reporting date
|
|
(a)
|
On January 8, 2021, the sale of the ship “Olmeca” was formalized by Transportación Marítima Mexicana, S.A. de C.V., a subsidiary of Grupo TMM which was delivered in Singapore to the Athene Shipping Limited company, generating a
profit. On December 2, 2020, the Company received an advance to guarantee the purchase for an amount of $63,700. This amount was used to settle the debt owed to ACT Maritime, LLC.
|
Grupo TMM, S.A.B. and Subsidiaries
|
68
|
|
(b)
|
Management continues to monitor the development of the COVID-19 pandemic and its impact on the Company, and has not identified any significant event related to the pandemic or any other matter between the reporting date and the
authorization date of the accompanying financial statements, which in its view requires any adjustment or disclosure.
|
30
|
Authorization of the consolidated financial statements
|
The consolidated financial statements of the Company were authorized by Luis Rodolfo Capitanachi Dagdug on May 14, 2021, in his capacity as Director of Administration and Finance, as well as by the Board of Directors on the same date, to
be issued and subsequently approved by the General Stockholders’ Meeting, which has the authority to modify the accompanying consolidated financial statements.