Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q3 2020 Earnings Presentation
24 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, October 2020
Slide 1: 3rd Quarter 2020 Earnings Report
3rd 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 3Q20 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: Resilience in Challenging Times / ESG at the Core of our Strategy
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 6: Scorecard 3Q20
Scorecard 3Q20 Financial Performance Supports Shareholder Return Financial Highlights ▪ Sales were US$2.83 billion during the 3Q20, 17.7% above the past quarter and 1.4% higher than 3Q19, mainly because of higher copper prices YoY (+12.2%), that offset lower molybdenum prices (-34.8%). ▪ Operating I
Slide 7: Financial Highlights
Financial Highlights ▪ Most of our business units have shown a steep financial recovery during the 3Q20. USD 3Q20 3Q19 Var. % YTD20 YTD19 Var. % REVENUE (MM) 2,834 2,794 1.4% 7,692 8,046 -4.4% OPERATING INCOME (MM) 1,188 883 34.5% 2,643 2,661 -0.7% EBITDA (MM) 1,493 1,248 19.6% 3,628 3,784 -4.1% EBI
Slide 8: Company Highlights
Company Highlights Mi ning Tr ansportation I nfrastructure -25.2% CASH COST VOLUME RECOVERY +380 BPS MARGIN IMPROVEMENT Cash cost net of by products improved by Even though we are still not at the In spite of the current challenging 25.2% during the third quarter. We previous volume levels, we have
Slide 9: Grupo Mexico maintains a solid balance sheet / Dividend Payments
Grupo Mexico maintains a solid balance sheet Dividend Payments 6.4% $1.00 With a low leverage and a net debt to EBITDA ratio of 1.2x 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.
Slide 10: Debt Maturity Profile
• Comfortable maturity schedule. Debt Maturity Profile • No significant payments until 2035. • US$2.9Bn cashflow generated during 9M20. 1,500 1,500.0 1,300.0 1,200 1,108 1,100.0 1,013 1,000 900.0 700.0 651 555 492 500.0 323 287 300.0 124 138 104 100.0 74 59 63 45 55 13 14 14 15 16 16 0 0 0 0 0 0 0 U
Slide 11: Mining Division
Mining Division 11
Slide 12: Financial Highlights
Financial Highlights 3Q20 280,584 tons of COPPER US$2,253 million SALES 2.0% lower than in 3Q19 The Mining Division’s 3Q20 sales were 8.1% higher than in 3Q19, 839k tons copper year to date, primarily due to higher copper prices slightly higher vs. 2019 Sales also increased 19.3% QoQ Strong performa
Slide 13: Production Growth Profile (I)
Production Growth Profile (I) Short-Term Pilares Buenavista, Zinc El Pilar Tia Maria Sonora, Mexico Sonora, Mexico Sonora, Mexico Arequipa, Peru +35,000 tons Cu +20,000 tons Cu +35,000 tons Cu +120,000 tons Cu US $159 Million Total +80,000 tons Zn US$ 310 Million Total Capex US $1.4 Billion Total Ca
Slide 14: Production Growth Profile (II)
Production Growth Profile (II) Long-Term Los Chancas Michiquillay El Arco Apurimac, Peru Cajamarca, Peru Baja California Mexico +225,000 tons Cu +190,000 tons Cu +130,000 tons Cu US$ 2.5 Billion Total Capex US$ 2.8 Billion Total Capex US $2.6 Billion Total Capex ▪ Byproducts: 105K Oz Au ▪ Byproducts
Slide 15: Transportation Division
_ Grupo Mexico Transportation Division = GrupoMéxico
Slide 16: Financial Highlights
Financial Highlights 3Q20 US$537 million in SALES US$238 million in EBITDA A 16.4% decrease vs 3Q19, A 14.4% decrease vs the 3Q19, mainly driven by the due to a decrease in volumes Automotive and Metals and movement of some of our segments, partially offset segments given the situation the by the Ch
Slide 17: 3Q20 Highlights
3Q20 Highlights ▪ COVID-19 Effects ✓ Revenue decreased -4.8% in 3Q. ✓ The automotive segment moved 430 loads/day, 90% of last year’s volume. ✓ Strong recovery in carloads from a -25% decrease in 2Q vs -4% at the end of 3Q. ▪ Financial Highlights 3Q20 vs 3Q19 ✓ EBITDA decreased 2% to MXN$5,268 millio
Slide 18: Main Variations
Main Variations Revenue 3Q20 % Revenue Growth Chemicals: Significant growth in resins as well as basic chemicals. COVID-19 had a positive impact on 10% some chemical products' demand. High 22% Energy: Volume increase and new routes for imported and domestic refined products more than offset 6% COVID
Slide 19: Operating Metrics
Operating Metrics 3Q20 vs 3Q19 Average Train Speed Dwell Time Cars Velocity (km/hr) (hours) (km/ Day) +1.4% +7.1% 37.65 33.28 300.4 37.14 280.4 -30.7% 20.96 3Q19 3T 2019 3Q20 3T 2020 3Q19 3T 2019 3Q20 3T 2020 3Q19 Ene-Sep-19 3Q20 Ene-Sep-20 Average Train Length Gross Tons per Train Crew Starts (Mete
Slide 20: CAPEX GMXT 2021
CAPEX GMXT 2021 (Million USD) CAPEX EXECUTED 2021 3Q 2020 Main Projects Description ▪ New Rail & Ties (1) ▪ Bridges (2) MAINTENANCE ▪ Locomotive overhaul Surfacing $ 260.7 $ 159.7 ▪ ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ Celaya bypass (5) ▪ M&S Projects ▪ Monterrey bypass (6) G
Slide 21: Infrastructure Division
_ Grupo Mexico Infrastructure Division = GrupoMéxico
Slide 22: Financial Highlights
Financial Highlights 3Q20 US$129 million in sales US$60 million EBITDA A decrease of 12.9% during 3Q20 decreased 19.0% vs compared to the previous 3Q19 with a margin of 46.3%. year. However, during 9M20 we have achieved a +380 basis points Sales showed a +2.5% increase in EBITDA margin. increase QoQ
Slide 23: Relevant Events
Relevant Events Energy Generation < PEMSA The Salamanca-Leon Highway Accumulated sales totaled US$167 PEMSA ended the quarter with 6 oil Cumulative revenues were US$24 million; an increase of 0.8% vs rigs in operation and an average million, and monthly traffic totaled 2019. There was a 1.5% increas
Slide 24: Q&A 2020
Q&Q 2020 24
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