Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q3 2023 Earnings Presentation
25 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, October 2023
Slide 1: 3Q23 Results
3Q23 Results OCTOBER 2023
Slide 2: Disclaimer
3Q23 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
01 02 03 04 05 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
3Q23 RESULTS MAIN HIGHLIGHTS 01 Main Highlights ESG Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile
Slide 5: ESG Highlights
3Q23 RESULTS GRUPO MEXICO ESG Highlights Sustainability is a key pillar of Grupo Mexico’s business model. Investments with We are diligently constructing infrastructure to provide clean drinking water a Lasting Impact and sewage systems in Cananea and Nacozari, to address the pressing water scarcity
Slide 6: Scorecard
3Q23 RESULTS GRUPO MEXICO US$10,963M US$4,335M 765,602 TONS OF CU 9M23 SALES 9M23 OPERATING INCOME YTD PRODUCTION 8.7% vs 2022 7.6% vs 9M22 3.8% vs 2022 17.1% vs 3Q22 27.3% vs 3Q22 -1.0% vs 3Q22 P$1.00 Mainly due to an increase in copper sales volumes, good metrics in the Transportation Division and
Slide 7: Financial Highlights
3Q23 RESULTS GRUPO MEXICO Financial Highlights USD 3Q23 3Q22 VAR % 9M23 9M22 VAR% REVENUE (MM) 3,647 3,115 17.1% 10,963 10,083 8.7% OPERATING INCOME (MM) 1,373 1,078 27.3% 4,335 4,027 7.6% EBITDA (MM) 1,782 1,424 25.1% 5,515 5,050 9.2% EBITDA MARGIN 48.9% 45.7% 50.3% 50.1% CASH COST 1.29 1.28 0.3% 1
Slide 8: Grupo Mexico maintains a solid balance sheet
3Q23 RESULTS GRUPO MEXICO Grupo Mexico maintains Dividend Payments a solid balance sheet 1Q $1.50 5.9% 2021 Low leverage $1.75 2Q 7.4% 95% of the debt has a fixed rate 7.2% Average 2021 3Q $1.75 7.4% $1.75 4Q 8.1% 1Q $1.50 6.3% Debt 2Q $1.00 5.1% 2022 0.3x Net Debt/EBITDA ratio 2022 3Q $0.75 4.7% 4Q
Slide 9: Debt Maturity Profile
3Q23 RESULTS GRUPO MEXICO Debt Maturity US Millions Profile 2023 2024 2025 26 237 757 2026 51 2027 917 2028 210 MINING DIVISION 2029 496 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. 2
Slide 10: Mining Division
3Q23 RESULTS MINING DIVISION 02 Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation
Slide 11: Copper Market
3Q23 RESULTS MINING DIVISION Copper Market Outlook Slow recovery of the Chinese economy. LME Copper Price Recession in Europe. 3.51 3Q22 Soft landing in the US. 7.9% Expected market surplus in 2023. 3Q23 3.79 Low copper inventories. 11
Slide 12: Mining Division Financial Highlights 9M23
3Q23 RESULTS MINING DIVISION US$8,333M US$4,164M 765,602 9M23 SALES YTD EBITDA TONS OF COPPER IN 9M23 9M23 sales were 5.1% higher than in 2022, as a 5.5% higher than 2022, with a 50.0% margin. 3.8% higher vs 9M22, mainly due to a result of higher copper sales volumes and an production increase of 10
Slide 13: Projects Update: Short Term Project Highlights
3Q23 RESULTS MINING DIVISION Projects Update Short Term Project 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
Slide 14: Projects Update: Long Term Project Highlights
3Q23 RESULTS MINING DIVISION Projects Update Long Term Project Highlights Los Chancas Los Chancas, Apurimac, Peru (2030): As of September 30, 2023, the Company has held talks with representatives of the Tiaparo Community to acquire part of the land required for the project. Hydrogeological and geote
Slide 15: Continuous Value Creation
3Q23 RESULTS MINING DIVISION Continuous Value Creation Robust Pipeline Region Peru Project Growth Projects Los Chancas Region Production Peru 7.5k tons Mo Project 130k tons Cu Ilo Smelter USD USD $2.6 Bn $1.3 Bn Region Region Region Region Region Mexico Region Mexico Mexico Mexico Peru Region Projec
Slide 16: Transportation Division
3Q23 RESULTS TRANSPORTATION DIVISION 03 Transportation Division Financial Highlights Main Variations Operating Metrics CAPEX 2024
Slide 17: Transportation Financial Highlights
3Q23 RESULTS TRANSPORTATION DIVISION Financial Highlights 9M23 US$2,395M US$1,105M Transported volume 9M23 9M23 SALES 9M23 EBITDA NET TON-KM CARLOADS +5.2% -0.5% An 18.9% increase vs 9M22, mainly driven by a 20.4% higher than 9M22. positive performance of the Automotive segment. 46.2% margin. +60bps
Slide 18: Main Variations
3Q23 RESULTS TRANSPORTATION DIVISION Main Variations Revenue 3Q23 | MXN % REVENUE GROWTH Automotive: Increase in volume due to empty car availability and market share gains, as well as increasing import volumes from Asian 47% brands. High 33% 17% Metals: Increase in scrap and slab imports, as well a
Slide 19: Operating Metrics
3Q23 RESULTS TRANSPORTATION DIVISION Operating Metrics 9M23 VS 9M22 Average train speed Dwell time Cars velocity (KM/HR) (HOURS) (KM/DAY) +4.0% -12.0% 6.0% 25.7 272.2 37.3 9M22 9M22 9M22 9M23 9M23 9M23 38.8 22.6 288.1 Average train length Gross tons per train Crew starts (METERS) (TONS) (AVERAGE MON
Slide 20: CAPEX GMXT 2024
3Q23 RESULTS TRANSPORTATION DIVISION CAPEX GMXT 2024 Million USD Description 2024 Main Projects New Rail & Ties (1) Locomotive and Machinery Maintenance $294.6 Overhauls Rail maintenance (2) Tools and equipment Bridges, Cuts and Slopes Stabilization (3) Growth $40.9 “Pesqueria” Branch (4) Sales & Ma
Slide 21: Infrastructure Division
3Q23 RESULTS INFRASTRUCTURE DIVISION 04 Infrastructure Division Financial Highlights Relevant Events
Slide 22: Infrastructure Financial Highlights 9M23
3Q23 RESULTS INFRASTRUCTURE DIVISION US$529M US$57M US$261M 9M23 SALES 9M23 NET INCOME 9M23 EBITDA 4.1% higher than 9M22. 70.6% higher than in 2022. 31.6% higher vs 2022, with a 49.3% margin. These outstanding outcomes are a direct reflection of 140% higher vs 3Q22. An increase of 37.7% vs 3Q22. our
Slide 23: Relevant Events
3Q23 RESULTS INFRASTRUCTURE DIVISION Relevant Events Oil rigs Promoting Substantial Growth within Infrastructure Perforadora Mexico continues to demonstrate outstanding operational efficiency, achieving a rate of 96.1%, along with cost reductions and a consistent improvement in profitability. As of
Slide 24: Q&A 2023
05 Q&A 2023 24
Slide 25: 3Q23 Results
OCTOBER 2023 = GrupoMexico 3Q2 3 Results