Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q1 2022 Earnings Presentation
24 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, April 2022
Slide 1: 1Q22 Results
1Q22 RESULTS APRIL 2022
Slide 2: Disclaimer
Disclaimer R E S U L T S 1 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 1 Q 2 2 p. 04 02 Main Highlights of our Mining Division p. 10 03 Main Highlights of our Transportation Division p. 15 04 Main Highlights of our Infrastructure Division p. 21 05 Q&A Session p. 24 3
Slide 4: Main Highlights
Main ESG Highlights Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile 4
Slide 5: ESG Highlights
ESG R E S U L T S Highlights ▪ Grupo Mexico has had a performance that confirms the trend of continuous 1 Q 2 2 improvement in our main sustainability indicators over the past 3 years. ▪ Accident rates were reduced by 16%, water recirculation increased by almost SUSTAINABILITY STRATEGY 5 million m3,
Slide 6: Scorecard
Scorecard R E S U L T S FINANCIAL PERFOMANCE EBITDA EBITDA Margin 1 Q 2 2 SUPPORTS SHAREHOLDER RETURNS US$2,205 M. 58.6% Sales 3.1% vs 1Q21 vs 62.3% in 1Q21 US$3,764 M. 9.6% vs 1Q21 Production Cash Cost Mainly driven by favorable copper prices (+17.7% LME), and higher prices in our by- products, mol
Slide 7: Financial Highlights
Financial Highlights R E S U L T S 1 Q 2 2 USD 1Q22 1Q21 VAR % REVENUE (MM) 3,764 3,435 9.6% OPERATING INCOME (MM) 1,869 1,700 9.9% EBITDA (MM) 2,205 2,139 3.1% EBITDA MARGIN 58.6% 62.3% CASH COST 0.81 0.88 8.6% DIVIDEND PER SHARE ($MXN) 1.50 1.50 7
Slide 8: Grupo Mexico maintains a solid balance sheet
Grupo Mexico R E S U L T S maintains a solid Dividend Payments 1 Q 2 2 balance sheet 3.6% 5.4% 6.4% 5.5% 5.9% 7.4% 7.4% 8.1% 6.3% ▪ Low leverage $1.75 $1.75 $1.75 $1.50 ▪ 96% of the debt has a fixed rate $1.50 $1.25 $1.00 $0.80 Debt $0.40 QUARTERLY DIVIDEND YIELD 0.3x Net Debt/ 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Slide 9: Debt Maturity Profile
Debt Maturity R E S U L T S Profile US MILLIONS 1 Q 2 2 1,500 1,400.0 MINING DIVISION 1,200 1,200.0 1,111 TRANSPORTATION DIVISION 1,017 1,000 1,000.0 INFRASTRUCTURE DIVISION 800.0 725 722 600.0 501 ▪ Comfortable maturity schedule. 400.0 356 ▪ No significant payments until 2035. 185 200.0 136 152 ▪ C
Slide 10: Mining Division
Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation 10
Slide 11: Financial Highlights 1Q22 - Mining
Financial R E S U L T S 1Q22 Highlights 1 Q 2 2 SALES EBITDA NET INCOME US$3,077 M. US$1,849 M. US$828 M. 1Q22 sales were 9.8% higher than in 2021, During 1Q22, 2.2% higher than in 1Q21, with During 1Q22. mainly due to a favorable price environment for a 60.1% margin. copper (+17.7%) and higher pric
Slide 12: Projects Update
Projects R E S U L T S Update 1 Q 2 2 PROJECT QUARTER HIGHLIGHTS ▪ Pilares, Sonora, Mexico (4Q22): PILARES The project has obtained all permits and licenses required. 50% of investment has been deployed up to date. ▪ Buenavista Zinc, Sonora, Mexico (2H23): BUENAVISTA Engineering study has been compl
Slide 13: Projects Update
Projects R E S U L T S Update PROJECT QUARTER HIGHLIGHTS 1 Q 2 2 ▪ Los Chancas, Apurimac, Peru (2027): LOS CHANCAS An open-pit mine with a combined operation of concentrator and SX-EW processes to produce 130,000 tons of copper and 7,500 tons of molybdenum annually. In 2021, we continued to engage i
Slide 14: Continuous Value Creation
Continuous Value Creation ROBUST PIPELINE R E S U L T S GROWTH PROJECTS Year Region Project Production USD 1 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 202
Slide 15: Transportation Division
Transportation Financial Highlights Division 1Q22 Highlights Main Variations Operating Metrics CAPEX GMXT 2022 15
Slide 16: Financial Highlights 1Q22 - Transportation
Financial R E S U L T S 1Q22 Highlights 1 Q 2 2 SALES EBITDA US$644 M. US$297 M. An 8.6% increase vs 2021, mainly driven by the 12.7% higher than 1Q21. continuous investment plan of the recent years, which has allowed us to increase capacity and improve 46.1% margin. efficiency in our operation. +17
Slide 17: 1Q22 Highlights
1Q22 Highlights R E S U L T S 1 Q 2 2 Highlights 1Q22 vs 1Q21 Revenue increased 9.6% in MXN$50cts/share Volumes have increased MXN, driven by market share dividend was in most business units. volume gains. approved by the Board. The first quarter of 2022 represents a new record EBITDA increased 13.5
Slide 18: Main Variations
Main Variations R E S U L T S REVENUE 1Q22 1 Q 2 2 % REVENUE GROWTH Industrial: Market share gains in consumption products, beer market, as well as a recovery of new railcar export 33% volumes. Metals: 28% Increased share of MX imports and volume on both raw materials and finished products. High 56%
Slide 19: Operating Metrics
Operating Metrics R E S U L T S 1Q22 VS 1Q21 1 Q 2 2 AVERAGE TRAIN SPEED DWELL TIME CARS VELOCITY (KM/HR) -1.3% ( H O U RS) -6.4% (KM/DAY) +5.7% 37.9 26.3 294.3 37.4 24.6 278.4 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 AVERAGE TRAIN LENGTH GROSS TONS PER TRAIN CREW STARTS (METERS) -0.1% ( TO NS) -2.2% ( A V E R
Slide 20: CAPEX GMXT 2022
CAPEX GMXT 2022 R E S U L T S MILLION USD 1 Q 2 2 DESCRIPTION 2022 MAIN PROJECTS MAINTENANCE $ 291.3 • New Rail & Ties (1) • Locomotive overhaul • Rail maintenance • Tools and equipment • Bridges (2) • Surfacing • Track Equipment • Celaya Bypass (4) GROWTH $ 115.9 • Monterrey Bypass (5) • Ojinaga –P
Slide 21: Infrastructure Division
Infrastructure Financial Highlights Division Relevant Events 21
Slide 22: Financial Highlights 1Q22 - Infrastructure
Financial R E S U L T S 1Q22 Highlights SOLID PERFORMANCE, GENERATING VALUE AND GROWTH THROUGH OUR DIFFE RENT BUSINESS UNITS 1 Q 2 2 EBITDA SALES US$64 M. US$146 M. 6.8% higher vs 1Q21, with a margin of 43.7%. 1.1% lower than in 1Q21. The main drivers of this growth were the improved performance of
Slide 23: Q&A
Q&A 2022 ‘ty
Slide 24: Grupo México
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