Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q3 2021 Earnings Presentation
24 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, October 2021
Slide 1: 3Q21 Results
SGnupo MexICE 3Q21 Results ‘= GrupoMexico
Slide 2: Disclaimer
3Q21 RESULTS 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 forward looking statements to reflect events or circumstances after information about GM’
Slide 3: Contents
3Q21 RESULTS Contents p.04 p.10 p.15 p.21 p.24 01 02 03 04 05 Grupo México’s Main Highlights of Main Highlights of our Main Highlights of our Q&A Main Highlights our Mining Division Transportation Division Infrastructure Division Session 3
Slide 4: Main Highlights
3Q21 RESULTS Main Highlights
Slide 5: ESG Highlights
3Q21 RESULTS ESG Highlights ▪ Numerous programs and initiatives have been pushed forward by Grupo México to help communities face the COVID-19 pandemic in all regions where we operate. So far, the percentage of employees with at least one dose of the COVID-19 vaccines is 87% for the Mining Division,
Slide 6: Scorecard
3Q21 RESULTS Scorecard FINANCIAL PERFOMANCE SUPPORTS SHAREHOLDER RETURN Sales Operating Income US$11.00bn US$5.63bn +43.0% vs 2020 +112.9% vs 9M20 Mainly driven by higher copper (+59.1%), molybdenum (+73.0%), silver (+33.4%), zinc (+35.1%) and gold (+3.8%) prices YoY and a recovery in transported vo
Slide 7: Financial Highlights
3Q21 RESULTS Financial Highlights USD 3Q21 3Q20 VA R % 9M21 9M20 VA R % REVENUE (MM) 3,652 2,834 28.9% 11,000 7,692 43.0% OPERATING INCOME (MM) 1,851 1,188 55.8% 5,626 2,643 112.9% EBITDA (MM) 2,181 1,493 46.1% 6,737 3,628 85.7% EBITDA MARGIN 59.7% 7 52.7% 61.2% 47.2% CASH COST 0.77 0.82 -6.1% 0.80
Slide 8: Grupo Mexico maintains a solid balance sheet
3Q21 1Q21 RESULTS 7.4% 7.4% $1.75 $1.75 Grupo Mexico maintains Dividend Payments 5.9% a solid balance sheet $1.50 With a low leverage and a net debt to EBITDA ratio of 0.3x. An 81% of the 5.5% debt is in US Dollars, and 19% in Mexican Pesos (MXN). 93% of the debt has $1.25 a fixed rate. In addition,
Slide 9: Debt Maturity Profile
3Q21 RESULTS Debt Maturity Profile • Comfortable maturity schedule. • No significant payments until 2035. • Cash Flow increased +10.4% QoQ reaching US$ 6.2 Bn. MINING TRANSPORTATION INFRASTRUCTURE DIVISION DIVISION DIVISION 1,500 1,400.0 1,200 1,200.0 1,110 1,016 1,000 1,000.0 800.0 722 711 600.0 50
Slide 10: Mining Division
3Q21 RESULTS Mining Division
Slide 11: Financial Highlights
3Q21 RESULTS Financial Highlights 3Q21 Highest quarterly production of the year. US $2,958 million in US $1,849 million Net Income sales EBITDA US $871 million 53.0% TOP-LINE INCREASE The Mining Division’s 3Q21 During 3Q21, with a 62.5% During 3Q21. sales were 31.3% higher than margin. in 3Q20, prim
Slide 12: Project Progress
3Q21 RESULTS Project Progress PROJECT QUARTER HIGHLIGHTS • Pilares, Sonora, Mexico (1Q22) : A 25-meter-wide road was built for mining trucks that will transport the ore between the Pilares pit and the primary crushing plants of La Caridad. • The budget for Pilares is $159 million of which we have in
Slide 13: Project Progress
3Q21 RESULTS Project Progress PROJECT QUARTER HIGHLIGHTS • Michiquillay (2028): Michiquillay is expected to produce 225,000 tons of copper per year (along with molybdenum, gold, and silver byproducts) at a competitive extraction cost with an investment of approximately US$2.50 billion. • In 2018, a
Slide 14: Continuous Value Creation
1Q21 RESULTS 3Q21 Continuous Value Creation Robust Pipeline Growth Projects Thousand of Tons +63% Michiquillay 1,845 +225k 1,800 El Arco +190k 2028 Copper 1,600 Los Chancas Production Tía María +130k Including 1,400 Buenavista El Pilar +120k Projects Pilares Zinc 1,200 +20k +36k +35k 1,129 1,000 Cop
Slide 15: Transportation Division
3Q21 RESULTS Transportation Division
Slide 16: Financial Highlights
1Q21 RESULTS 3Q21 3Q21 RESULTS Financial Highlights 3Q21 Most segments show positive variations in revenue, carloads and tons-kilometer. US $655 million in US $293 million in sales EBITDA A 22.0% increase vs 3Q20, mainly driven 23.4% higher than in 3Q20. by an increase in the transported volume led
Slide 17: Highlights 3Q21 vs 3Q20
3Q21 RESULTS 3Q21 Highlights Highlights 3Q21 vs 3Q20 Volumes have returned stronger than Pre-COVID levels in most business units. The third quarter of 2021 is a new record in Revenue. Revenue increased 10.4%, driven by market share volume gains. EBITDA increased 11.5% to MXN$5,873 million. MXN$50cts
Slide 18: Main Variations
3Q21 RESULTS Main Variations REVENUE 3Q21 % Revenue Growth Metals: Increased Mexico imports and volume on both raw materials and finished products. 62% This was driven by market share gains and a recovery of consumption in Mexico. Cement: Increased Mexico export and US domestic volumes due to a reco
Slide 19: Operating Metrics
3Q21 RESULTS Operating Metrics 3Q21 VS 3Q20 Average Train Speed Dwell Time Cars Velocity (km/hr) (hours) (km/ Day) -5.5% -13.6% -1.2% 33.28 300.4 37.65 280.4 277.1 37.14 28.75 +1.4% 35.11 -6.7% 20.96 +37.2% +7.1% -7.7% -37.0% 3Q 19 3Q 19 3Q 20 3Q 20 3Q 21 3Q 21 3Q19 3Q 19 3Q 20 3Q 20 3Q 3Q21 21 3Q 1
Slide 20: CAPEX GMXT 2022
3Q21 RESULTS CAPEX GMXT 2022 Million USD Description 2021 2022 Main Projects ▪ New Rail & Ties (1) ▪ Bridges (2) MAINTENANCE ▪ Locomotive overhaul Surfacing $ 257.5 $ 294.1 ▪ ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ Celaya Bypass (4) ▪ M&S Project’s GROWTH $ 138.5 $ 119.3 ▪ Inter
Slide 21: Infrastructure Division
3Q21 RESULTS Infrastructure Division
Slide 22: Financial Highlights
1Q21 RESULTS 3Q21 RESULTS Financial Highlights 3Q21 US$ 138 million in sales US$ 56 million EBITDA 6.8% higher than in 3Q20. 6.0% lower vs 3Q20, with a margin of 40.8%. The Energy and Highway business units Accumulated EBITDA totaled US$174 million, -14.5% lower than in 2020, mainly due to the were
Slide 23: Relevant Events
3Q21 RESULTS Relevant Events Energy Generation Projects Update ▪ Accumulated sales totaled US$225.1 million; an Fenicias Wind Farm – Tests Completed, Awaiting Go-Live increase of 34.4% vs 2020, mainly driven by an ▪ 168MW renewable project, located in Nuevo Leon, is complete. increase in the price o
Slide 24: Ait)
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