Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2020 Earnings Presentation
27 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, July 2020
Slide 1: 2nd Quarter 2020 Earnings Report
2nd Quarter 2020 Earnings Report 1
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by [Grupo México, S.A.B. de C.V. (“GM”)] and is general background information about GM’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information
Slide 3: Schedule
Schedule 2Q20 Grupo México’s Main Highlights 04 Marlene Finny Main Highlights of our Mining Division 14 Xavier Garcia de Quevedo Oscar González Main Highlights of our Transportation Division 18 Fernando López-Guerra Main Highlights of our Infrastructure Division 24 Francisco Zinser Q&A Session 27 Su
Slide 4: Main Highlights
BGnupe Viexica Main Highlights ‘te
Slide 5: Covid-19: Community and Social Wellbeing
Covid-19 Community and Social Wellbeing Grupo México continues to fight the COVID-19 pandemic by prioritizing efforts to safeguard the health and well-being of all our stakeholders, including our workers and the communities in which we are present. We are currently operating all of our business unit
Slide 6: Donations to more than 200 hospitals in 21 states
Donations to more than 200 hospitals in 21 states 139 Breathing support ventilators 60,000 Liters of anti-bacterial gel 500 Non-invasive ventilators 63,000 Pantries 486,000 Medical Kits 60,000 Prepared Foods 94,000 Medical Supplies Support of medical equipment for the reconversion of four hospitals
Slide 7: Resilience in Challenging Times
Resilience in Challenging Times Grupo Mexico’s strengths • Strong financial position • Capex schedule flexibility • Strong cash generation • Comfortable Maturity Schedule • Cost competitiveness • World’s largest Copper reserves • Experience Management Team • Proven track record in executing growth p
Slide 8: Scorecard 2Q20
Scorecard 2Q20 Financial Performance Supports Shareholder Return Financial Highlights ▪ Sales were US$2.41 billion during the 2Q20, 11.5% lower than 2Q19, given lower copper (-12.6%), zinc (- 28.8%) and molybdenum (-31.2%) prices. ▪ EBITDA for 2T20 totaled US$1.06 billion, 19.1% lower YoY. Sharehold
Slide 9: Financial Highlights
Financial Highlights USD 2Q20 2Q19 Var. % YTD20 YTD19 Var. % REVENUE (MM) 2,408 2,720 -11.5% 4,858 5,252 -7.5% OPERATING INCOME (MM) 748 920 -18.7% 1,456 1,778 -18.1% EBITDA (MM) 1,064 1,316 -19.1% 2,136 2,536 -15.8% EBITDA margin 44.2% 48.4% 44.0% 48.3% CASH COST 0.85 1.00 -14.7% 0.89 1.06 -16.0% D
Slide 10: Company Highlights
Company Highlights Mi ning Tr ansportation I nfrastructure PRODUCTION OPERATING METRICS +8% EBITDA GROWTH We have been able to continue operating Despite lower volume in the second +8% EBITDA growth YoY, due to the and maintain production roughly in line quarter, GMXT continues to improve continuous
Slide 11: Grupo Mexico maintains a solid balance sheet; Dividend Payments
Grupo Mexico maintains a solid balance sheet Dividend Payments With a low leverage and a net debt to EBITDA ratio of 1.4x 6.0% 6.8% 7.1% 5.7% 5.7% 7.4% 6.7% 6.4% 5.4% 84% of the debt is in US Dollars, and 16% in Mexican Pesos (MXN). 96% of the debt has a fixed rate. In addition, Grupo $0.80 $0.80 $0
Slide 12: Debt Maturity Profile
• Comfortable maturity schedule. Debt Maturity Profile • No significant payments until 2035. 1,500 1,500.0 1,300.0 1,200 1,109 1,100.0 1,013 1,000 900.0 700.0 637 556 489 500.0 317 300.0 259 122 136 105 103 100.0 54 58 62 45 13 14 14 15 15 16 0 0 0 0 0 0 0 US $MILLONES 2020 2021 2022 2023 2024 2025
Slide 13: Natural Hedging
Grupo México Natural Hedging Revenue Costs Grupo México 89% 11% Grupo México 47% 44% Mining 100% Mining 67% 33% Transportation 53% 47% Transportation 30% 70% Infrastructure 59% 41% Infrastructure 35% 65% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% USD MXN
Slide 14: Mining Division
Mining Division 14
Slide 15: Mining Division Financial Highlights
Financial Highlights 2Q20 US$1,888 billion SALES US$815 million EBITDA The Mining Division’s 2Q20 sales were 15.0% lower than 2Q19, with an 6.8% lower than in 2Q19, due to the EBITDA margin of 43.1% during the decline in Copper, Zinc and Molybdenum quarter. prices. . 285,759 tons US$124 million CAPE
Slide 16: Production Growth Profile: Short-Term
Production Growth Profile • We do not expect significant delays in our Project Pipeline due to COVID-19. Short-Term Tia Maria Pilares Buenavista, Zinc El Pilar Arequipa, Peru Sonora, Mexico Sonora, Mexico Sonora, Mexico +120,000 tons Cu +35,000 tons Cu +20,000 tons Cu +35,000 tons Cu US $1.4 Billion
Slide 17: Production Growth Profile: Long-Term
Production Growth Profile Long-Term Los Chancas Michiquillay El Arco Apurimac, Peru Cajamarca, Peru Baja California Mexico +225,000 tons Cu +190,000 tons Cu +130,000 tons Cu US$ 2.5 Billion Total Capex US$ 2.8 Billion Total Capex US $2.8 Billion Total Capex ▪ Byproducts: 105K Oz Au ▪ Byproducts: 7.5
Slide 18: Transportation Division
_ Grupo Mexico Transportation Division = GrupoMéxico
Slide 19: Transportation Division Financial Highlights
Financial Highlights 2Q20 US$474 million in SALES US$192 million in EBITDA A 25.5% decrease vs 2Q19, A 34.3% decrease from 2Q19, mainly driven by the due to the decrease in volumes Automotive, Intermodal caused by the closure of some and Industrial segments, industries and the decrease in partially
Slide 20: 2Q20 Highlights
2Q20 Highlights ▪ COVID-19 Effects ✓ Revenues decreased (9.3)% in MXN. ✓ Impacts included the automotive industry shut-down of 2.5 months and some other industrial production drop of 75% for 1 month. ✓ International Intermodal Imports from Manzanillo decreased (11)%, offset by an increase in market
Slide 21: Main Variations
Main Variations Revenue 2Q20 % Revenue Growth Energy: Volume increase and new routes for imported refined products offset the decrease caused a 12% lower demand due to current COVID-19 market conditions. High 22% Growth Agricultural: Market share growth in local crops (Northwest) and ports. Volume i
Slide 22: Operating Metrics
Operating Metrics Strong Performance 2Q20 vs 2Q29 Average Train Speed Dwell Time Cars Velocity* (Km/hr) (Hours) (Km/day) +2.2% +14.2% 39.19 29.35 274.0 38.34 -18.9% 239.9 23.80 2Q1919 Abr-Jun 2Q2020 Abr-Jun 2Q1919 Abr-Jun 2Q2020 Abr-Jun 2Q1919 Abr-Jun 2Q2020 Abr-Jun Average Train Length Gross Tons p
Slide 23: CAPEX 2020
CAPEX 2020 (Million USD) ▪ Our Capex for 2020 has been adjusted to $372 MUSD, of which $109 MUSD have been spent and $80 MUSD have been committed Description CAPEX Main Projects ▪ New Rail & Ties (1) ▪ Bridges MAINTENANCE ▪ Locomotive overhaul Surfacing $ 179.9 ▪ ▪ Rail maintenance ▪ Track Equipment
Slide 24: Infrastructure Division
_ Grupo Mexico Infrastructure Division = GrupoMéxico
Slide 25: Infrastructure Division Financial Highlights
Financial Highlights 2Q20 US$126 million in sales US$63 million EBITDA A decrease of 7.8% compared during 2Q20 decrease 7.6% vs to the previous year. 2Q19 with a margin of 50.1%. US$6 million Net profit in 2Q20 25
Slide 26: Relevant Events
Relevant Events PEMSA The Salamanca-Leon Highway Energy Generation < PEMSA ended the quarter with 6 oil Accumulated revenues totaled 2Q20 EBITDA totaled US$27 million rigs in operation and an average US$17 million,—and the decrease with a 48.4% margin. There was a efficiency of 99.5%. Sales were up
Slide 27: Q&A 2020
Q&Q 2020 27