Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2021 Earnings Presentation
23 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2021
Slide 1: 2Q21 Results
SGnupo MexICE 2Q21 Results ‘= GrupoMexico
Slide 2: Disclaimer
2Q21 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
2Q21 RESULTS Contents p.04 p.10 p.14 p.20 p.23 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
2Q21 RESULTS Main Highlights
Slide 5: ESG at the Core of our Strategy
2Q21 RESULTS ESG at the Core of our Strategy We proudly announce the release of our ESG Report that is aligned to GRI, and for the first time this year to SASB and TCFD. Strengthening our commitment to transparency. • In 2020, 3.8% Grupo Mexico’s net income was invested in community and philanthropy
Slide 6: Scorecard
2Q21 RESULTS Scorecard FINANCIAL PERFOMANCE SUPPORTS SHAREHOLDER RETURN Sales Operating Income US$7.35bn US$3.78bn +51.3% vs 2020 +159.4% vs 6M20 Mainly driven by higher copper (+65.6%), molybdenum (+41.2%), silver (+58.8%), zinc (+37.6%) and gold (+9.7%) prices YoY and a recovery in transported vol
Slide 7: Financial Highlights
2Q21 RESULTS Financial Highlights USD 2Q21 2Q20 VA R % YTD21 YTD20 VA R % REVENUE (MM) 3,914 2,408 62.5% 7,349 4,858 51.3% OPERATING INCOME (MM) 2,076 748 177.4% 3,776 1,456 159.4% EBITDA (MM) 2,416 1,064 127.1% 4,556 2,135 113.4% EBITDA MARGIN 61.7% 7 44.2% 62.0% 43.9% CASH COST 0.76 0.84 -8.7% 0.8
Slide 8: Grupo Mexico maintains a solid balance sheet
2Q21 1Q21 RESULTS 7.4% $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 0.5x. An 81% of the 5.5% debt is in US Dollars, and 19% in Mexican Pesos (MXN). 93% of the debt has $1.25 a fixed rate. In addition, Grupo Mexi
Slide 9: Debt Maturity Profile
2Q21 RESULTS Debt Maturity Profile • Comfortable maturity schedule. • No significant payments until 2035. • Cash Flow increased +17% QoQ reaching US$ 5.6 Bn. • Net debt was reduced by -45% compared to the 2Q20 and -17% lower than 1Q21. MINING INFRASTRUCTURE TRANSPORTATION DIVISION DIVISION DIVISION
Slide 10: Mining Division
2Q21 RESULTS Mining Division
Slide 11: Financial Highlights
2Q21 RESULTS Financial Highlights 2Q21 US $3,230 million in US $2,056 million Net Income sales EBITDA US $900 million 71.1% TOP-LINE INCREASE The Mining Division’s 2Q21 During 2Q21, with a 63.7% During 2Q21. sales were 71.1% higher than margin in 2Q20, primarily due to Cumulative EBITDA reached high
Slide 12: Project Progress
2Q21 RESULTS Project Progress PROJECT QUARTER HIGHLIGHTS • Pilares, Sonora, Mexico (1Q22) : The construction of the 25-meter-wide road for mining trucks to transport the ore between the Pilares pit and the primary crushing plants in La Caridad began a couple of months ago and is already materially c
Slide 13: Continuous Value Creation
1Q21 RESULTS 2Q21 Continuous Value Creation Robust Pipeline Growth Projects Thousand of Tons +63% Michiquillay +225k 1,845 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 14: Transportation Division
2Q21 RESULTS Transportation Division
Slide 15: Financial Highlights
1Q21 RESULTS 2Q21 2Q21 RESULTS Financial Highlights 2Q21 All segments show positive variations in revenue, carloads and tons-kilometer. US $644 million in US $293 million in sales EBITDA A 35.9% increase vs 2Q20 and 8.6% 52.2% higher than in 2Q20. QoQ, mainly driven by the Automotive, Metals, Interm
Slide 16: Highlights
2Q21 RESULTS 2Q21 Highlights Highlights 2Q21 vs 2Q20 Volumes have returned stronger than Pre-COVID levels in all business units. The second quarter of 2021 is a new record in Revenue, EBITDA and Net Income. Revenue increased 17%, driven by market share volume gains. EBITDA increased 31.3% to MXN$5,8
Slide 17: Main Variations
2Q21 RESULTS Main Variations REVENUE 2Q21 % Revenue Growth Automotive: The segment shows a strong recovery compared to last year's period with temporary 221% plant shutdowns due to COVID-19, partially offset by the worldwide microchips shortage. Metals: Volume increased on both raw materials and fin
Slide 18: Operating Metrics
2Q21 RESULTS Operating Metrics 2Q21 VS 2Q20 Average Train Speed Dwell Time Cars Velocity (km/hr) (hours) (km/day) -4.3% +1.5% -8.8% 38.82 37.99 28.82 314.7 286.7 290.9 36.37 26.27 +2.2% -6.3% 20.04 +31.1% +9.8% -7.5% -30.4% 2Q 19 2Q 19 2Q 20 2Q 20 2Q 21 2Q 21 2Q 19 2Q 19 2Q 20 2Q 20 2Q 21 2Q 21 2Q 1
Slide 19: CAPEX GMXT 2021
2Q21 RESULTS CAPEX GMXT 2021 Million USD Description CAPEX Main Projects ▪ New Rail & Ties (1) ▪ Bridges (2) MAINTENANCE ▪ Locomotive overhaul Surfacing $ 246.6 ▪ ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ M&S Project’s ▪ Celaya Bypass (5) GROWTH $ 72.4 Monterrey Bypass (6) ▪ Inter
Slide 20: Infrastructure Division
2Q21 RESULTS Infrastructure Division
Slide 21: Financial Highlights
1Q21 RESULTS 2Q21 RESULTS Financial Highlights 2Q21 US$ 272 million in sales YTD US$ 58 million EBITDA 3.6% higher than in 2020. 8.6% lower vs 2Q20, with a margin of Despite the still present circumstances 46.4%. generated by the pandemic, we were able to execute our strategy and achieve an Accumula
Slide 22: Relevant Events
2Q21 RESULTS Relevant Events Energy Generation Projects Update ▪ Sales totaled US $66 million; an increase of 20.6% vs Fenicias Wind Farm – Tests Completed, Awaiting Go-Live 2Q20, mainly driven by an increase in the price of ▪ 168MW renewable project, located in Nuevo Leon, is 99% the gas molecule.
Slide 23: Ait)
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