Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q3 2022 Earnings Presentation
26 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, October 2022
Slide 1: 3Q22 Results
3Q22 RESULTS OCTOBER 2022
Slide 2: Disclaimer
Disclaimer R E S U L T S 3 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 3 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 Highlights R E S U L T S 3 Q 2 2 UN GLOBAL COMPACT CSA AMC, a Grupo México subsidiary, joins the United Grupo México, along with Southern Copper and Nations Global Compact. Joining the UN Global GMXT improved their CSA 2022 ratings from S&P Compact will allow us to strengthen our Global. GMEX: 1
Slide 6: Scorecard
Scorecard R E S U L T S FINANCIAL PERFOMANCE EBITDA EBITDA Margin 3 Q 2 2 SUPPORTS SHAREHOLDER RETURNS US$5,050 M. 50.1% Sales -25.0% vs 9M21 vs 61.2% in 9M21 US$10,083 M. -8.3% vs 9M21 Production Cash Cost Mainly driven by a decrease in the Mining Division revenues, partially offset by the Transpor
Slide 7: Financial Highlights
Financial Highlights R E S U L T S 3 Q 2 2 USD 3Q22 3Q21 VAR % 9M22 9M21 VAR% REVENUE (MM) 3,115 3,652 -14.7% 10,083 11,000 -8.3% OPERATING INCOME (MM) 1,078 1,851 -41.7% 4,027 5,626 -28.4% EBITDA (MM) 1,424 2,181 -34.7% 5,050 6,737 -25.0% EBITDA MARGIN 45.7% 59.7% 50.1% 61.2% CASH COST 1.28 0.77 66
Slide 8: Grupo Mexico maintains a solid balance sheet
Grupo Mexico R E S U L T S maintains a solid Dividend Payments 3 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% 4.7% ▪ Low leverage $1.75 $1.75 $1.75 ▪ 97% of the debt has a fixed rate $1.50 $1.50 $1.25 $1.00 $1.00 $0.80 $0.75 Debt $0.40 QUARTERLY DIVIDEND YIELD 0.4x Net Debt/
Slide 9: Debt Maturity Profile
Debt Maturity R E S U L T S Profile US MILLIONS 3 Q 2 2 1,600.0 1,500 MINING DIVISION 1,400.0 1,200 TRANSPORTATION DIVISION 1,200.0 1,111 1,017 1,000 INFRASTRUCTURE DIVISION 1,000.0 800.0 722 711 600.0 ▪ Comfortable maturity schedule. 396 400.0 352 ▪ No significant payments until 2035. 183 200.0 135
Slide 10: Mining Division
Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation 10
Slide 11: Copper Market
Copper Market R E S U L T S LME COPPER PRICE 3 Q 2 2 4.25 4.17 -17.4% 4.12 3.51 OUTLOOK High Inflation. Increase in interest rates. Impact of energy prices on consumer’s demand. 3Q21 3Q22 9M21 9M22 4.17 -1.2% 4.12 Low inventories levels. 51 Expected market deficit in 2022. Slightly market surplus in
Slide 12: Mining Division Financial Highlights
Financial R E S U L T S 9M22 Highlights 3 Q 2 2 TONS OF COPPER SALES EBITDA 737,560 US$7,925 M. US$3,947 M. 9M22 sales were 11.8% lower than in 2021, During 9M22, 30.9% lower than in 9.6% lower vs 2021, mainly due to the mainly due to 9.6% lower production given 2021, with a 49.8% margin. illegal bl
Slide 13: Projects Update
Projects R E S U L T S Update 3 Q 2 2 PROJECT QUARTER HIGHLIGHTS ▪ Pilares, Sonora, Mexico (4Q22): The project is 95% completed and has obtained all permits and licenses PILARES required. Operation has started and is currently mining copper oxides and mineral to be processed. ▪ Buenavista Zinc, Sono
Slide 14: Projects Update: Long Term Projects
Projects R E S U L T S Update LONG TERM PROJECT QUARTER HIGHLIGHTS: 3 Q 2 2 ▪ Los Chancas, Apurimac, Peru (2027): As of September 30, 2022, part of the project’s land continued to be occupied by illegal miners, some of whom have irregularly registered their LOS CHANCAS stakes in the "Integral Regist
Slide 15: Continuous Value Creation
Continuous Value Creation ROBUST PIPELINE R E S U L T S GROWTH PROJECTS Year Region Project Production USD 3 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 3Q22 Highlights Main Variations Operating Metrics CAPEX GMXT 2023 16
Slide 17: Transportation Financial Highlights
Financial R E S U L T S 9M22 Highlights MOST OF THE SEGMENTS SHOW POSITIVE VARIATIONS IN REVENUE 3 Q 2 2 SALES EBITDA US$2,014 M. US$918 M. A 6.4% increase vs 2021, mainly driven by a positive 8.0% higher than 9M21, with a 45.6% margin. performance of most of the segments, especially the Energy and
Slide 18: 3Q22 Highlights
3Q22 Highlights R E S U L T S 3 Q 2 2 Highlights 3Q22 vs 3Q21 Volumes have returned Revenue increased 8.0%. MXN$50cts/share stronger than Pre-COVID dividend was approved levels in most business by the Board. units. The third quarter of 5.3 million shares have 2022, as well as the EBITDA increased 12
Slide 19: Main Variations
Main Variations R E S U L T S REVENUE 3Q22 3 Q 2 2 % REVENUE GROWTH 20% Industrial: We continue to enjoy volume increases on our Mexico to the US exports of finished goods, as we see consumption growth quarter over quarter. Minerals: Positive volume of copper an iron ores, both for exports and domes
Slide 20: Operating Metrics
Operating Metrics R E S U L T S 3Q22 VS 3Q21 3 Q 2 2 AVERAGE TRAIN SPEED DWELL TIME CARS VELOCITY (KM/HR) +2.4% ( H O U RS) -1.1% (KM/DAY) +0.9% 37.3 25.9 284.7 36.4 25.6 282.1 9M21 9M22 9M21 9M22 9M21 9M22 AVERAGE TRAIN LENGTH GROSS TONS PER TRAIN CREW STARTS (METERS) -1.6% ( TO NS) -1.6% ( A V E R
Slide 21: CAPEX GMXT 2023
CAPEX GMXT 2023 R E S U L T S MILLION USD 3 Q 2 2 DESCRIPTION 2023 MAIN PROJECTS • New Rail & Ties (1) MAINTENANCE $ 240.2 • Locomotive overhaul • Rail maintenance • “El Mexicano” Tunnel Rehabilitation (3) • Bridges (2) • Surfacing • Fleet Acquisition (Grain, Intermodal, Auto) GROWTH $ 188.7 • Celay
Slide 22: Infrastructure Division
Infrastructure Financial Highlights Division Relevant Events 22
Slide 23: Infrastructure Financial Highlights
Financial 9M22 R E S U L T S Highlights SOLID PERFORMANCE, GENERATING VALUE AND GROWTH THROUGH OUR DIFFE RENT BUSINESS UNITS 3 Q 2 2 SALES EBITDA US$508 M. US$198 M. 13.9% higher vs 9M21, with a margin of 39.0%. 23.9% higher than in 2021, mainly due to increased revenues in the power plant “La Carid
Slide 24: Relevant Events
Relevant R E S U L T S Events 3 Q 2 2 Uninterrupted operations ▪ Operational efficiency continues to be one of our key strengths, given the impact it has on our results. As of the end of 3Q22, Perforadora Mexico has OIL RIGS achieved uninterrupted operations in all of its rigs, with an operational e
Slide 25: Q&A
Q&A 2022 ‘te
Slide 26: Grupo México
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