Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2023 Earnings Presentation
25 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, July 2023
Slide 1: 2Q23 Results
2Q23 Results JULY 2023
Slide 2: Disclaimer
2Q23 RESULTS DISCLAIMER Disclaimer Summary financial information This information is given in summary form and does not purport This presentation may contain forward looking statements This document includes summary financial information and to be complete. Information in this presentation, includin
Slide 3: Contents
Grupo México’s Mining Division Transportation Division Infrastructure Division Q&A Session Main Highlights Main Highlights Main Highlights Main Highlights 04p 10p 16p 21p 24p Contents 3
Slide 4: Main Highlights
2Q23 RESULTS MAIN HIGHLIGHTS 01 Main Highlights ESG Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile
Slide 5: ESG Highlights
2Q23 RESULTS GRUPO MEXICO ESG Highlights Sustainability is a key pillar of Grupo México’s business model. Risk Management As of the 2Q23, all the operating units of the Mining Division have successfully obtained the ISO 14001 certification in Environmental management and ISO 45001 in Occupational he
Slide 6: Scorecard
2Q23 RESULTS GRUPO MEXICO US$7,316M US$3,733M 511,738 TONS OF CU 1H23 SALES 1H23 EBITDA 1H23 PRODUCTION 5.0% vs 1H22 3.0% vs 1H22 6.3% vs 1H22 14.6% vs 2Q22 7.8% vs 2Q22 9.2% vs 2Q22 P$0.80 Mainly due to an increase in copper production, record high metrics in the Transportation Division and excepti
Slide 7: Financial Highlights
2Q23 RESULTS GRUPO MEXICO Financial Highlights USD 2Q23 2Q22 VAR % 1H23 1H22 VAR% REVENUE (MM) 3,454 3,203 7.8% 7,316 6,967 5.0% OPERATING INCOME (MM) 1,232 1,079 14.2% 2,962 2,948 0.5% EBITDA (MM) 1,628 1,420 14.6% 3,733 3,626 3.0% EBITDA MARGIN 47.1% 44.4% 51.0% 52.0% CASH COST 1.32 1.31 1.1% 1.16
Slide 8: Grupo Mexico maintains a solid balance sheet
2Q23 RESULTS GRUPO MEXICO Grupo Mexico maintains Dividend Payments a solid balance sheet $1.50 1Q 5.9% 2021 Low leverage 2Q $1.75 7.4% 94% of the debt has a fixed rate 7.2% Average 2021 3Q $1.75 7.4% 4Q $1.75 8.1% Debt 1Q $1.50 6.3% 2022 0.4x Net Debt/EBITDA ratio 2Q $1.00 5.1% 5.2% Average 2022 3Q
Slide 9: Debt Maturity Profile
1Q23 RESULTS GRUPO MEXICO Debt Maturity US Millions Profile 2023 2024 2025 133 242 763 2026 51 2027 946 2028 210 MINING DIVISION 2029 486 2030 59 2031 64 TRANSPORTATION DIVISION 2032 68 2033 19 INFRASTRUCTURE DIVISION 2034 21 2035 1,021 2036 22 2037 24 2038 25 2039 26 Comfortable maturity schedule.
Slide 10: Mining Division
2Q23 RESULTS MINING DIVISION 02 Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation
Slide 11: Copper Market
2Q23 RESULTS MINING DIVISION Copper Market Outlook Reduction in global inflation. LME Copper Price Slowdown in interest rates hikes. 4.32 2Q22 Slowdown of the Chinese economy. -10.9% Expected market balance in 2023. 2Q23 3.85 Low copper inventories. 11
Slide 12: Mining Division Financial Highlights 1H23
2Q23 RESULTS MINING DIVISION US$5,604M US$2,834M 511,738 1H23 SALES 1H23 EBITDA TONS OF COPPER IN 1H23 1H23 sales were 0.8% higher than in 2022, even During 1H23, 2.8% lower than in 1H22, with a 6.3% higher vs 1H22, mainly due to an increase though copper price (Comex) was 10.6% lower than 50.6% mar
Slide 13: Projects Update
2Q23 RESULTS MINING DIVISION Projects Update Project Quarter Highlights Pilares Pilares, Sonora, Mexico: This project will significantly improve the overall mineral ore grade, considering the 0.78% expected from Pilares with 0.29% from La Caridad. The investment budget is US$176 million, of which $1
Slide 14: Projects Update: Long Term Projects
2Q23 RESULTS MINING DIVISION Projects Update Long Term Project Quarter Highlights Los Chancas Los Chancas, Apurimac, Peru (2030): As of June 30, 2023, part of the project’s land continued to be occupied by illegal miners, 75 of whom have irregularly registered their stakes in the “Integral Registry
Slide 15: Continuous Value Creation
2Q23 RESULTS MINING DIVISION Continuous Value Creation Robust Pipeline Region Region Peru Mexico Project Project Growth Projects Los Chancas Pilares Production Production 7.5k tons Mo 35k tons Cu 130k tons Cu USD USD $176M $2.6 Bn Region Region Mexico Region Region Mexico Region Project Mexico Peru
Slide 16: Transportation Division
2Q23 RESULTS TRANSPORTATION DIVISION 03 Transportation Division Financial Highlights 1H23 Highlights Main Variations Operating Metrics CAPEX 2023
Slide 17: Transportation Financial Highlights
2Q23 RESULTS TRANSPORTATION DIVISION Financial Highlights 1H23 – Most of the segments show positive variations in revenue and transported volumes. Sales and EBITDA reached record highs. US$1,573M US$747M Transported volume 1H23 1H23 SALES 1H23 EBITDA NET TON-KM CARLOADS +7.2% +0.5% A 19.6% increase
Slide 18: Main Variations
2Q23 RESULTS TRANSPORTATION DIVISION Main Variations Revenue 2Q23 % REVENUE GROWTH 50% Automotive: Production increase and market share gains from major auto makers and new import volumes from Asian brands. 18% Cement: Volume growth from all major Cement companies due to longer hauls and increase in
Slide 19: Operating Metrics
2Q23 RESULTS TRANSPORTATION DIVISION Operating Metrics 1H23 VS 1H22 Average train speed Dwell time Cars velocity (KM/HR) (HOURS) (KM/DAY) +4.0% -17.0% 6.0% 25.8 273.1 37.3 1H22 1H22 1H22 1H23 1H23 1H23 38.6 21.4 290.2 Average train length Gross tons per train Crew starts (METERS) (TONS) (AVERAGE MON
Slide 20: CAPEX GMXT 2023
2Q23 RESULTS TRANSPORTATION DIVISION CAPEX GMXT 2023 Million USD Description 2023 Main Projects • New Rail & Ties (1) • Locomotive overhauls Maintenance $245.7 • Rail maintenance • Bridges • Surfacing Growth $133.4 • “Pesqueria” strategic Project (3) • Box cars, hoppers, multilevels & intermodal equ
Slide 21: Infrastructure Division
2Q23 RESULTS INFRASTRUCTURE DIVISION 04 Infrastructure Division Financial Highlights Relevant Events
Slide 22: Infrastructure Financial Highlights
2Q23 RESULTS INFRASTRUCTURE DIVISION US$335M US$37M US$162M 1H23 SALES 1H23 NET INCOME 1H23 EBITDA 6.5% higher than 1H22, given by reaching results that In 1H23, 48.0% higher than in 1H22. 28.2% higher vs 2022, with a 48.3% margin. surpass our initial expectations across all business units as a resu
Slide 23: Relevant Events
2Q23 RESULTS INFRASTRUCTURE DIVISION Relevant Events Oil rigs Uninterrupted operations Perforadora Mexico achieved a remarkable operational efficiency of 99.2%, cost reductions, and continuous improvement in profitability. By the end of 2Q23, accumulated net sales reached US$102MM and EBITDA US$54MM
Slide 24: Q&A 2023
05 Q&A 2023 24
Slide 25: 2Q23 Results
JULY 2023 = GrupoMexico 2Q2 3 Results