Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q4 2020 Earnings Presentation
28 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2021
Slide 1: 4Q20 & 2020 Results
aatlpo MexIcs 4Q20 & 2020 Results
Slide 2: Disclaimer
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Disclaimer The material in this presentation has been prepared by [Grupo obligation to publicly release the result of any revisions to these México, S.A.B. de C.V. (“GM”)] and is general background in- forward looking statements to reflect events or circumstanc
Slide 3: Contents
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Contents p.04 p.14 p.18 p.25 p.28 01 02 03 04 05 Grupo México’s Main Highlights of our Main Highlights of our Main Highlights of our Q&A Sessions Main Highlights Mining Division Transportation Division Infraestructure Division Marlene Finny Xavier García de Que
Slide 4: Main Highlights
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Main Highlights
Slide 5: 2020 a Record Year Production and EBITDA
2020 A RECORD YEAR PRODUCTION AND EBITDA EBITDA EBITDA CU PRODUCTION CASH COST COPPER PRICE YEAR (COMEX USD) (USD) MARGIN (MT) (LB USD) 2020 49.1% 1,129 k 0.85 2.80 5.35 Billion 2019 46.3% 1,119 k 1.07 2.72 4.95 Billion 2018 46.6% 1,002 k 1.11 2.93 4.89 Billion 2017 46.3% 1,011 k 1.11 2.80 4.53 Bill
Slide 6: COVID-19 Donations and Actions
4 t h QU A RT E R & 2 0 2 0 RE S U LTS COVID-19 Donations and Actions Grupo Mexico faced the challenge of the pandemic with resilience, capacity for innovation and an approach based on solidarity •Grupo Mexico devoted an extraodinary budget of MXN$500 million to protect health personnel and support
Slide 7: Scorecard 4Q20
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Scorecard 4Q20 FINANCIAL PERFOMANCE SUPPORTS SHAREHOLDER RETURN Financial Highlights • Sales were US$10.90 billion during the 2020, 2.1% above 2019, 22.1% higher than 4Q19 and 13.5% above 3Q20; mainly because of an increase in copper production (+1%) and higher
Slide 8: Financial Highlights
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Financial Highlights MOST OF OUR BUSINESS UNITS HAVE SHOWN A STEEP FINANCIAL RECOVERY DURING THE 4Q20. USD 4Q 20 4Q 19 VA R % 2020 2019 VA R % REV EN UE (MM) 3,217 2,635 22.1% 10,909 10,681 2.1% O PERA T I N G I N C O M E (M M ) 1,320 819 61.2% 3,963 3,480 13.9
Slide 9: Company Highlights: Mining
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Company Highlights Mining RECORD YEAR IN COPPER PRODUCTION Despite the challenges of the COVID-19 pandemic, we reached a record production of 1,128,927 tons of copper during 2020. RECORD YEAR IN MOLYBDENUM & SILVER PRODUCTION Molybdenum production reached 30,24
Slide 10: Company Highlights: Transportation
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Company Highlights Transportation SERVICE AND OPERATIONS UNINTERRUPTED During this challenging year we are proud to say that we were able to maintain our railway service uninterrupted while safeguarding our workforce. VOLUME RECOVERY Despite 2020 resulting in l
Slide 11: Company Highlights: Infrastructure
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Company Highlights Infrastructure +360 BPS EBITDA MARGIN IMPROVEMENT VS 2019 In spite of the current challenging situation worldwide because of the pandemic, we have been able to increase our EBITDA margin in the Division from 47% to 50.6%. This is mostly due t
Slide 12: Solid balance sheet and dividend payments
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Grupo Mexico maintains a Dividend Payments 5.5% solid balance sheet $1.25 With a low leverage and a net debt to EBITDA ratio of 0.9x An 82% of the debt is in US Dollars, and 18% in Mexican Pesos (MXN). 96% of the debt has a 6.4% fixed rate. In addition, Grupo M
Slide 13: Debt Maturity Profile
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Debt Maturity Profile • Comfortable maturity schedule. • No significant payments until 2035. • US$ 4.05 Bn cashflow generated during 2020. MINING DIVISION TRANSPORTATION DIVISION INFRASTRUCTURE DIVISION 1,500 1,500.0 1,300.0 1,200 1,110 1,100.0 1,015 1,000 900.
Slide 14: Mining Division
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Mining Division
Slide 15: Financial Highlights
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Financial Highlights 2 020 1,128,927 tons of US $8,566 million in US $0.85 Cash-Cost copper sales (net) NEW PRODUC TION RECORD 7.5% TOP-LINE INCREASE COST LEADER IN THE INDUTRY WORLDWIDE 1.0% higher than in 2019, and The Mining Division’s 2020 sales A reduction
Slide 16: Production Growth Profile (I)
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Production Growth Profile (I) SHORT-TERM This translates in +210 k tons of copper production during the next 5 years. Our projects are low capital intensive and improve our overall cost structure to continue enhacing efficiency. Pilares Buenavista, Zinc El Pila
Slide 17: Production Growth Profile (II)
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Production Growth Profile (II) L ON G-TERM This translates in +560 k tons of copper production and a significant increase in byproduct output. These projects will lead us to the next milestone of reaching roughly 2.0 million tons of production. Los Chanchas Mic
Slide 18: Transportation Division
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Transportation Division
Slide 19: Financial Highlights
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Financial Highlights 2020 US $2,158 million US $944 million in in sales EBITDA A 12.7% decrease vs 2019, mainly driven by 13.9% lower than in 2019, due to a decrease the Automotive, Industrial and Intermodal in volumes and movement of some of our segments, part
Slide 20: 4Q20 Highlights
4 t h QU A RT E R & 2 0 2 0 RE S U LTS 4Q20 Highlights Commercial Highlights 4Q20 vs 4Q19 Revenue decreased -7.6%. In MXN. Mainly driven by the agricultural segment, where volume decrease was related to shifts in demand and externalities. GMXT continues to improve market share position in relevant m
Slide 21: Main Variations
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Main Variations REV ENUE 4 Q 2 0 % Revenue Growth 13% Metals: Inaugurated new routes of raw materials accompanied by market share increase. Chemicals: Increased cross border volumes of chemical products where COVID-19 had a positive High 33% 13% impact on deman
Slide 22: Operating Metrics
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Operating Metrics 4 Q 2 0 VS 4Q19 (Oct-Dec) M i l l i o n M XN Average Train Speed Dwell Time Cars Velocity (k m/hr) (hours) (k m/ Day) +13.2% +14.9% -24.8% 38.04 38.10 31.82 295.2 291.8 253.9 -1.2% +0.2% 24.84 23.92 +16.3% -21.9% 33.65 +13.0% -3.7% 4Q 18 4Q 18
Slide 23: CAPEX GMXT 2021
4 t h QU A RT E R & 2 0 2 0 RE S U LTS CAPEX GMXT 2021 (M IL L ION USD) CAPEX Description 2021 Main Projects ▪ New Rail & Ties (1) ▪ Bridges (2) MAINTENANCE ▪ Locomotive overhaul ▪ Surfacing $ 260.7 ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ Celaya bypass (5) ▪ M&S Projects GROWTH
Slide 24: GMXT Outlook 2021
4 t h QU A RT E R & 2 0 2 0 RE S U LTS GMXT OUTLOOK 2021 DOUBL E DIGIT REV ENUE GROWTH M i l l i on M XN 5.5 - 7.5 % 4-6% Double - Digit YOY Growth $46,106 24
Slide 25: Infrastructure Division
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Infrastructure Division
Slide 26: Financial Highlights
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Financial Highlights 2020 US$ 528 million in sales US$ 267 million EBITDA A decrease of 9.0% compared to the previous 2.0% lower vs 2019 with a margin of year given lower revenues in the construction 50.6% and highway businesses derived from the health continge
Slide 27: Relevant Events
4 t h QU A RT E R & 2 0 2 0 RE S U LTS Relevant Events Energy Generation ▪ Accumulated sales totaled US$230 million; an increase of 1.9% vs 2019, mainly driven by an increase in the price of the gas molecule. • 1.0% increase in energy generation which totaled 3,656 GWh during 2020. PEMSA ▪ PEMSA end
Slide 28: Q&A 2020
Q&A 2020 “
Grupo México, S.A.B. de C.V. — Q4 2020 Earnings Presentation on 6ix