Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q1 2023 Earnings Presentation
26 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, April 2023
Slide 1: 1Q23 Results
1Q23 Results APRIL 2023
Slide 2: Disclaimer
1Q23 RESULTS DISCLAIMER Disclaimer Summary financial information This information is given in summary form and does not purport This presentation may contain forward looking statements This document includes summary financial information and to be complete. Information in this presentation, includin
Slide 3: Contents
Grupo México’s Mining Division Transportation Division Infrastructure Division Q&A Session Main Highlights Main Highlights Main Highlights Main Highlights 04p 10p 16p 22p 25p Contents 3
Slide 4: Main Highlights
1Q23 RESULTS MAIN HIGHLIGHTS 01 Main Highlights ESG Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile
Slide 5: ESG Highlights
1Q23 RESULTS GRUPO MEXICO ESG Highlights We celebrate 15 years of publishing our SDR with a focus on transparency and continuous improvement Third-party Buenavista Mine has been certified with three important ISO validation standards in quality management, environmental management, and in occupation
Slide 6: Scorecard
1Q23 RESULTS GRUPO MEXICO US$3,862M US$1,729M 253,059 TONS OF CU SALES OPERATING INCOME 1Q23 PRODUCTION 2.6% vs 1Q22 3.6% vs 1Q22 2.0% vs 4Q22 US$2,106M -6.1% vs 4Q22 EBITDA 1Q23 We achieved an increase in copper production, record high metrics in the Transportation Division and excellent results in
Slide 7: Financial Highlights
1Q23 RESULTS GRUPO MEXICO Financial Highlights USD 1Q23 1Q22 VAR % REVENUE (MM) 3,862 3,764 2.6% OPERATING INCOME (MM) 1,729 1,869 -7.5% EBITDA (MM) 2,106 2,205 -4.5% EBITDA MARGIN 54.5% 58.6% CASH COST 0.99 0.81 23.2% DIVIDEND PER SHARE ($MXN) 1.00 1.50 -33.3% 7
Slide 8: Grupo Mexico maintains a solid balance sheet
1Q23 RESULTS GRUPO MEXICO Grupo Mexico maintains Dividend Payments a solid balance sheet 1Q $1.50 5.9% $1.75 2021 Low leverage 2Q 7.4% 96% of the debt has a fixed rate $1.75 7.2% Average 2021 3Q 7.4% $1.75 8.1% 4Q $1.50 Debt 1Q 6.3% 2022 0.3x Net Debt/EBITDA ratio 2Q $1.00 5.1% 5.2% Average 2022 3Q
Slide 9: Debt Maturity Profile
1Q23 RESULTS GRUPO MEXICO Debt Maturity US Millions Profile 2023 2024 2025 144 164 744 2026 43 2027 793 2028 195 MINING DIVISION 2029 390 2030 58 2031 63 TRANSPORTATION DIVISION 2032 67 2033 18 INFRASTRUCTURE DIVISION 2034 20 2035 1,020 2036 21 2037 22 2038 23 2039 24 Comfortable maturity schedule.
Slide 10: Mining Division
1Q23 RESULTS MINING DIVISION 02 Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation
Slide 11: Copper Market
1Q23 RESULTS MINING DIVISION Copper Market Outlook Reduction in global inflation. LME Copper Price Slowdown in interest rates hikes. 4.53 1Q22 Bouncing back of Chinese economy. -11% Expected market balance in 2023. 1Q23 4.05 Low copper inventories. 11
Slide 12: Mining Division Financial Highlights 1Q23
1Q23 RESULTS MINING DIVISION US$3,043M US$1,662M 253,059 SALES EBITDA TONS OF COPPER 1Q23 sales were 1.1% lower than in 1Q22, mainly During 1Q23, 10.1% lower than in 1Q22, with a 3.6% higher vs 1Q22, mainly due to a recovery due to general decrease in copper prices (-10.6%), 54.6% margin. in the ope
Slide 13: Projects Update
1Q23 RESULTS MINING DIVISION Projects Update Project Quarter Highlights Pilares Pilares, Sonora, Mexico (2Q23): Currently, it is operating and delivering copper mineral oxides to the La Caridad SX/EW plant. We expect to produce mineral at full capacity for the Concentrator in La Caridad in 2Q23. The
Slide 14: Projects Update: Long Term Projects
1Q23 RESULTS MINING DIVISION Projects Update Long Term Project Quarter Highlights Los Chancas Los Chancas, Apurimac, Peru (2030): As of March 31, 2023, part of the project’s land continued to be occupied by illegal miners, 70 of whom have irregularly registered their stakes in the “Integral Registry
Slide 15: Continuous Value Creation
1Q23 RESULTS MINING DIVISION Continuous Value Creation Robust Pipeline Region Region Peru Mexico Project Project Growth Projects Los Chancas Pilares Production Production 7.5k tons Mo 35k tons Cu 130k tons Cu USD USD $176M $2.6 Bn Region Region Mexico Region Region Mexico Region Project Mexico Peru
Slide 16: Transportation Division
1Q23 RESULTS TRANSPORTATION DIVISION 03 Transportation Division Financial Highlights 1Q23 Highlights Main Variations Operating Metrics CAPEX 2023
Slide 17: Transportation Financial Highlights
1Q23 RESULTS TRANSPORTATION DIVISION Financial Highlights US$113M 1Q23 – Most of the segments show positive variations in revenue. NET INCOME Sales and EBITDA reached record highs. During 1Q23. US$762M US$366M Transported volume SALES EBITDA NET TON-KM CARLOADS +8.8% +0.9% An 18.3% increase vs 1Q22,
Slide 18: 1Q23 Highlights
1Q23 RESULTS TRANSPORTATION DIVISION 1Q23 Highlights 1Q23 vs 1Q22 Volumes increased 8.8% in NTK. The first quarter of 2023 is a record in volume, revenue and EBITDA Revenue increased 7.8%. EBITDA increased 12.1% to MXN$6,849 million. MXN$50cts/share dividend was approved by the Board. 9.8 million sh
Slide 19: Main Variations
1Q23 RESULTS TRANSPORTATION DIVISION Main Variations Revenue 1Q23 % REVENUE GROWTH 31% Automotive: Production increase and market share gains from major auto makers and new import volumes from Asian brands. 20% Cement: A more favorable revenue mix, due to export vs domestic routes. 16% Metals: Incre
Slide 20: Operating Metrics
1Q23 RESULTS TRANSPORTATION DIVISION Operating Metrics 1Q23 VS 1Q22 Average train speed Dwell time Cars velocity (KM/HR) (HOURS) (KM/DAY) +1.0% -9.0% 0.0% 37.5 297.3 1Q22 23.1 1Q22 1Q22 1Q23 1Q23 1Q23 37.9 296 21 Average train length Gross tons per train Crew starts (METERS) (TONS) (AVERAGE MONTH) -
Slide 21: CAPEX GMXT 2023
1Q23 RESULTS TRANSPORTATION DIVISION CAPEX GMXT 2023 Million USD Description 2023 Main Projects Maintenance $245.7 • New Rail & Ties (1) • Bridges (2) • Locomotive overhauls • Surfacing • Rail maintenance Growth $133.4 • “Pesqueria” strategic Project (3) • Sales & Marketing Project’s • Box cars, hop
Slide 22: Infrastructure Division
1Q23 RESULTS INFRASTRUCTURE DIVISION 04 Infrastructure Division Financial Highlights Relevant Events
Slide 23: Infrastructure Financial Highlights 1Q23
1Q23 RESULTS INFRASTRUCTURE DIVISION US$156M US$31M US$85M SALES NET INCOME EBITDA 6.7% higher than 1Q22, mainly driven by reaching better In 1Q23, 156.9% higher than in 1Q22. 34.0% higher vs 1Q22, with a 54.9% margin. than expected results in ALL our business units; including operational excellence
Slide 24: Relevant Events
1Q23 RESULTS INFRASTRUCTURE DIVISION Relevant Events Oil rigs Uninterrupted operations Continues to achieve great operational efficiency (99.5%), reduced costs and increasing profitability. By the end of 1Q23, accumulated net sales reached US$50MM and EBITDA US$27MM, increasing 30% and 51% respectiv
Slide 25: Q&A 2023
05 Q&A 2023 25
Slide 26: 1Q23 Results
APRIL 2023 = GrupoMéxico ] Q2 3 Results