Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2022 Earnings Presentation
25 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, July 2022
Slide 1: 2Q22 Results
2Q22 RESULTS JULY 2022
Slide 2: Disclaimer
Disclaimer R E S U L T S 2 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 2 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 R E S U L T S Highlights ▪ Grupo Mexico, as well as GMéxico Transportes, joined the S&P Global sustainability 2 Q 2 2 index called S&P/BMV Total Mexico ESG. Southern Copper Corporation was recognized, joining the S&P/BVL Peru General ESG index by the same agency. Both S&P GLOBAL indices are inte
Slide 6: Scorecard
Scorecard R E S U L T S FINANCIAL PERFOMANCE EBITDA EBITDA Margin 2 Q 2 2 SUPPORTS SHAREHOLDER RETURNS US$3,626 M. 52.0% Sales -20.4% vs 2021 vs 62.0% in 1H21 US$6,967 M. -5.2% vs 1H21 Production Cash Cost Mainly due to the US$217 million drop in production in Cuajone, lower ore grades equivalent to
Slide 7: Financial Highlights
Financial Highlights R E S U L T S 2 Q 2 2 USD 2Q22 2Q21 VAR % YTD22 YTD21 VAR% REVENUE (MM) 3,203 3,914 -18.2% 6,967 7,349 -5.2% OPERATING INCOME (MM) 1,079 2,076 -48.0% 2,948 3,776 -20.4% EBITDA (MM) 1,421 2,416 -41.2% 3,626 4,556 -20.4% EBITDA MARGIN 44.4% 61.7% 52.0% 62.0% CASH COST 1.29 0.76 69
Slide 8: Grupo Mexico maintains a solid balance sheet
Grupo Mexico R E S U L T S maintains a solid Dividend Payments 2 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% ▪ 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 $0.80 Debt $0.40 QUARTERLY DIVIDEND YIELD 0.4x Net Debt/ 1Q 2Q 3Q 4
Slide 9: Debt Maturity Profile
Debt Maturity R E S U L T S Profile US MILLIONS 2 Q 2 2 1,500 MINING DIVISION 1,400.0 1,200 1,200.0 TRANSPORTATION DIVISION 1,113 1,017 1,000 1,000.0 INFRASTRUCTURE DIVISION 800.0 725 722 600.0 473 ▪ Comfortable maturity schedule. 400.0 357 ▪ No significant payments until 2035. 185 200.0 136 152 ▪ C
Slide 10: Mining Division
Mining Division Financial Highlights Projects Update Continuous Value Creation 10
Slide 11: Copper Market
Copper Market R E S U L T S 2 Q 2 2 LME COPPER PRICE OUTLOOK Fear of global recession. Increase in interest rates. -2% 4.40 China COVID 19 restrictions. 4.32 Construction sector in China. Low levels of inventories. Expected market deficit. 2Q21 2Q22 11
Slide 12: Financial Highlights 1H22
Financial R E S U L T S 1H22 Highlights 2 Q 2 2 TONS OF COPPER SALES EBITDA 481,216 US$5,561 M. US$2,916 M. 1H22 sales were 7.8% lower than in 2021, During 1H22, 24.6% lower than in 1H21, 11.1% lower vs 2021, mainly due to the mainly due to the US$217 million drop in with a 52.4% margin. temporary s
Slide 13: Projects Update
Projects R E S U L T S Update 2 Q 2 2 PROJECT QUARTER HIGHLIGHTS ▪ Pilares, Sonora, Mexico (4Q22): PILARES The project has obtained all permits and licenses required. 51% of investment has been deployed up to date. ▪ Buenavista Zinc, Sonora, Mexico (2H23): BUENAVISTA Engineering study has been compl
Slide 14: Projects Update
Projects R E S U L T S PROJECT QUARTER HIGHLIGHTS Update Los Chancas, Apurimac, Peru (2027): 2 Q 2 2 ▪ In 1Q22, we continued to be involved in generating social and environmental LOS CHANCAS improvements for the local communities and we worked in the environmental impact assessment for the project.
Slide 15: Continuous Value Creation
Continuous Value Creation ROBUST PIPELINE R E S U L T S GROWTH PROJECTS Year Region Project Production USD 2 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 120
Slide 16: Transportation Division
Transportation Financial Highlights Division 2Q22 Highlights Main Variations Operating Metrics CAPEX GMXT 2022 16
Slide 17: Financial Highlights
Financial R E S U L T S 2H22 Highlights 2 Q 2 2 SALES EBITDA US$1,314 M. US$592 M. An 6.3% increase vs 2021, mainly driven by a positive 6.4% higher than 1H21. performance of most of the segments in terms of revenue during the quarter. 45.0% margin. The same level vs the previous year. TRANSPORTED V
Slide 18: 2Q22 Highlights
2Q22 Highlights R E S U L T S 2 Q 2 2 Highlights 2Q22 vs 2Q21 MXN$50cts/share Volumes have returned Revenue increased 4.1%. dividend was stronger than Pre-COVID approved by the in most business units. Board. The second quarter of EBITDA increased 1% 2022, as well as the to MXN$5,930 million. whole y
Slide 19: Main Variations
Main Variations R E S U L T S REVENUE 2Q22 2 Q 2 2 % REVENUE GROWTH 18% Industrial: Market share gains after COVID, mainly in beer market in MX and US. And a recovery of new railcar export volumes had also a positive impact. 18% Metals: Increased share of MX imports and exports and more volume on bo
Slide 20: CAPEX GMXT 2022
CAPEX GMXT 2022 R E S U L T S MILLION USD 2 Q 2 2 DESCRIPTION 2022 MAIN PROJECTS MAINTENANCE $ 291.3 • New Rail & Ties (1) • Locomotive overhaul • Rail maintenance • Tools and equipment • Bridges (2) • Surfacing • Track Equipment • Celaya Bypass (4) GROWTH $ 115.9 • Monterrey Bypass (5) • Ojinaga –P
Slide 21: Infrastructure Division
Infrastructure Financial Highlights Division Relevant Events 21
Slide 22: Financial Highlights
Financial R E S U L T S 1H22 Highlights SOLID PERFORMANCE, GENERATING VALUE AND GROWTH THROUGH OUR DIFFE RENT BUSINESS UNITS 2 Q 2 2 SALES EBITDA US$315 M. US$126 M. 7.6% higher vs 2021, with a margin of 40.1%. 15.9% higher than in 2021. NET INCOME US$25 M. 39.0% higher than in 2021. 22
Slide 23: Relevant Events
Relevant R E S U L T S Events 2 Q 2 2 ▪ As of the end of 2Q22, we continue to improve results achieving an NET INCOME accumulated Net Income of U$25M which represents an incremental of US$7M respectively vs. 2021. This growth is attributable to the continued operation of Oil Rigs, the increase of ca
Slide 24: Q&A
Q&A 2022 ‘te
Slide 25: Grupo México
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