Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q4 2022 Earnings Presentation
27 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, February 2023
Slide 1: 4Q22 and 2022 Results
4Q22 AND 2022 RESULTS FEBRUARY 2023
Slide 2: Disclaimer
Disclaimer R E S U L T S 4 Q 2 2 This information is given in summary form and does not purport to be This presentation may contain forward looking statements including complete. Information in this presentation, including financial forecasts, statements regarding our intent, belief or current expec
Slide 3: Contents
Contents R E S U L T S 01 Grupo México’s Main Highlights 4 Q 2 2 02 Main Highlights of our Mining Division 03 Main Highlights of our Transportation Division 04 Main Highlights of our Infrastructure Division 05 Q&A Session 3
Slide 4: Main Highlights
Main ESG Highlights Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile 4
Slide 5: ESG Highlights
ESG Highlights R E S U L T S 4 Q 2 2 CDP CSA Grupo Mexico obtained the third highest score in Grupo México improved its CSA 2022 ratings from the CDP’s assessment on climate change and S&P Global, 11%. water security. OCCUPATIONAL SAFETY SOCIAL IMPACT CAMIMEX and CONOCER awarded first place, to Grup
Slide 6: Scorecard
Scorecard R E S U L T S FINANCIAL PERFOMANCE 4 Q 2 2 SUPPORTS SHAREHOLDER RETURNS Operating Income Production US$5,655 M. 1,006,934 2022 TONS OF CU Sales US$13,870 M. -7.2% vs 2021 -6.1% vs 2021 269,375 tons of cu in the 4Q22 0.3% vs 4T21 5.1% vs 3Q22 Slight recovery given the Transportation and Div
Slide 7: Financial Highlights
Financial Highlights R E S U L T S 4 Q 2 2 USD 4Q22 4Q21 VAR % 2022 2021 VAR% REVENUE (MM) 3,788 3,776 0.3% 13,870 14,777 -6.1% OPERATING INCOME (MM) 1,629 1,840 -11.5% 5,655 7,467 -24.3% EBITDA (MM) 2,092 2,196 -4.7% 7,141 8,933 -20.1% EBITDA MARGIN 55.2% 58.1% 51.5% 60.5% CASH COST 0.72 0.94 23.7%
Slide 8: 2022 Quarterly Review
2022 Quarterly Review R E S U L T S (USD MILLONS) Revenue Operating Income EBITDA EBITDA Margin Copper Production Net Cash Cost 4 Q 2 2 3,788 1.28 21.6% 2,092 1,629 269 55.2% 3,115 +950 5.1% -43.9% bps 51.0% 46.8% 45.7% 256 1,424 1,078 0.72 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 9: Grupo Mexico maintains a solid balance sheet
Grupo Mexico R E S U L T S maintains a solid Dividend Payments 4 Q 2 2 balance sheet 3.6% 5.4% 6.4% 5.5% 5.9% 7.4% 7.4% 8.1% 6.3% 5.1% 4.7% 4.8% ▪ Low leverage $1.75 $1.75 $1.75 ▪ 96% of the debt has a fixed rate $1.50 $1.50 $1.25 $1.00 $1.00 $1.00 $0.80 $0.75 Debt $0.40 QUARTERLY DIVIDEND YIELD 0.4
Slide 10: Debt Maturity Profile
Debt Maturity R E S U L T S Profile US MILLIONS 4 Q 2 2 1,500 MINING DIVISION 1,400.0 1,200 1,200.0 TRANSPORTATION DIVISION 1,112 1,018 1,000 1,000.0 INFRASTRUCTURE DIVISION 800.0 731 744 600.0 400.0 367 ▪ Comfortable maturity schedule. 139 156 188 200.0 ▪ No significant payments until 57 62 66 2035
Slide 11: Mining Division
Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation 11
Slide 12: Copper Market
Copper Market R E S U L T S LME COPPER PRICE 4 Q 2 2 4.40 -18% 3.63 OUTLOOK • Reduction in global inflation. • Slowdown in interest rates hikes. • Turnaround in China’s polices. 4Q21 4Q22 • Expected market balance in 2023. 4.23 -5% • Low copper inventories. 4.00 2021 2022 12
Slide 13: Financial Highlights 2022
Financial R E S U L T S 2022 Highlights 4 Q 2 2 TONS OF COPPER SALES EBITDA 1,006,934 US$10,968 M. US$5,654 M. 2022 sales were 9.3% lower than in 2021, During 2022, 25.5% lower than in 2021, 7.2% lower vs 2021, mainly due to the mainly due to lower production during the with a 51.6% margin. illegal
Slide 14: Projects Update
Projects R E S U L T S Update 4 Q 2 2 PROJECT QUARTER HIGHLIGHTS ▪ Pilares, Sonora, Mexico (2Q23): Currently, it is operational and sending copper and mineral oxides to the La Caridad SX/EW plant. We expect to produce mineral at full capacity for the PILARES Concentrator in La Caridad in 2Q23. The i
Slide 15: Projects Update
Projects R E S U L T S Update LONG TERM PROJECT QUARTER HIGHLIGHTS: 4 Q 2 2 ▪ Los Chancas, Apurimac, Peru (2027): As of December 31, 2022, part of the project’s land continued to be occupied by illegal miners, some of whom have irregularly registered their LOS CHANCAS stakes in the "Integral Registr
Slide 16: Continuous Value Creation
Continuous Value Creation ROBUST PIPELINE R E S U L T S GROWTH PROJECTS Year Region Project Production USD 4 Q 2 2 $159 M 2022 Mexico Pilares 35k tons Cu 20k tons Cu $413 M Board Approved 2023 Mexico Buenavista Zinc 100k tons Zn +200k tons Cu +100k tons Zn 2024 Mexico El Pilar 36k tons Cu $310 M 202
Slide 17: Transportation Division
Transportation Financial Highlights Division 4Q22 Highlights Main Variations Operating Metrics CAPEX 2023 17
Slide 18: Financial Highlights 2022
Financial R E S U L T S 2022 Highlights MOST OF THE SEGMENTS SHOW POSITIVE VARIATIONS IN REVENUE 4 Q 2 2 SALES EBITDA US$2,713 M. US$1,234 M. A 7.5% increase vs 2021, mainly driven by a positive 9.9% higher than 2021, with a 45.5% margin. performance of most of the segments, especially the Industria
Slide 19: 4Q22 Highlights
4Q22 Highlights R E S U L T S 4 Q 2 2 Highlights 4Q22 vs 4Q21 Volumes have returned MXN$50cts/share stronger than Pre-COVID Revenue increased 5.1%. dividend was approved levels in most business by the Board. units. 2.8 million shares have It is the highest fourth EBITDA increased 10.4% been repurcha
Slide 20: Main Variations
Main Variations R E S U L T S REVENUE 4Q22 4 Q 2 2 % REVENUE GROWTH 30% Metals: Increased demand of finished products, is driving additional production and inbound of raw materials. High 33% 21% Cement: Increased construction demand is driving Mexican cement exports to the US. High 19% Industrial: N
Slide 21: Operating Metrics
Operating Metrics R E S U L T S 2022 VS 2021 4 Q 2 2 AVERAGE TRAIN SPEED DWELL TIME CARS VELOCITY (KM/HR) +3.0% ( H O U RS) -3.0% (KM/DAY) +2.0% 37.5 25.7 281.3 35.3 275.9 24.9 2021 2022 2021 2022 2021 2022 AVERAGE TRAIN LENGTH GROSS TONS PER TRAIN CREW STARTS (METERS) -1.0% ( TO NS) -2.0% ( A V E R
Slide 22: CAPEX GMXT 2023
CAPEX GMXT 2023 R E S U L T S MILLION USD 4 Q 2 2 DESCRIPTION 2023 MAIN PROJECTS MAINTENANCE $ 245.7 • New Rail & Ties (1) • Bridges (2) • Locomotive overhauls • Surfacing • Rail maintenance • “Pesqueria” strategic Project (3) • Sales & Marketing Project’s GROWTH $ 133.4 • Intermodal Terminal (4) •
Slide 23: Infrastructure Division
Infrastructure Financial Highlights Division Relevant Events 23
Slide 24: Financial Highlights 2022
Financial 2022 R E S U L T S Highlights A Y E AR OF SOL ID R E SULTS A S WE C ON TINUE T O M A KE P ROGRESS T OWARDS OU R ST RATEGIC OB JECTIVE S A N D G R OWTH WIT HIN A L L OU R B U SINESS U N ITS 4 Q 2 2 SALES EBITDA US$664 M. US$269 M. 18.6% higher vs 2021, a 40.5% margin. 19.1% higher than 2021
Slide 25: Relevant Events
Relevant R E S U L T S Events Uninterrupted operations – Record for the company 4 Q 2 2 ▪ Excellence in our operations is one of our main values, as a result, by the end Over the last 3 years the accident rate has OIL RIGS been continuously reduced by 47%. of 4Q22, Perforadora Mexico achieved uninte
Slide 26: Q&A
Q&A 2022 ‘te
Slide 27: Grupo México
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