Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q1 2024 Earnings Presentation
25 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, April 2024
Slide 1: 1Q24 Results
1Q24 Results APRIL 2024
Slide 2: Disclaimer
1Q24 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
1Q24 RESULTS MAIN HIGHLIGHTS 01 Main Highlights ESG Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile 4
Slide 5: ESG Highlights
1Q24 RESULTS GRUPO MEXICO ESG Highlights Sustainability is a key pillar of Grupo Mexico’s business model. Performance in For the third consecutive year, we were included in S&P Global's ESG Assessments Sustainability Yearbook. We are ranked among the top 15% of the best- from Rating rated companies
Slide 6: Scorecard
1Q24 RESULTS GRUPO MEXICO US$3,799M 267,994 TONS OF CU IN 1Q24 US$1.28 /LB 1Q24 SALES 1Q24 NET CASH COST -1.6% vs 1Q23 A recovery of 5.9% vs 2023 +29.0% vs 1Q23 11.3% vs 4Q23 -1.4% vs 4Q23 A reduction of US$0.15 (-10.6%) vs 4Q23. Mainly due to a slightly decrease in the Mining Division offset by exc
Slide 7: Financial Highlights
1Q24 RESULTS GRUPO MEXICO Financial Highlights USD 1Q24 1Q23 VAR % REVENUE (MM) 3,799 3,862 -1.6% OPERATING INCOME (MM) 1,544 1,729 -10.7% EBITDA (MM) 1,966 2,106 -6.6% EBITDA MARGIN 51.8% 54.5% CASH COST 1.28 0.99 29.0% DIVIDEND PER SHARE ($MXN) 1.00 1.00 7
Slide 8: Grupo Mexico maintains a solid balance sheet
1Q24 RESULTS GRUPO MEXICO Grupo Mexico maintains Dividend Payments a solid balance sheet 1Q $1.50 6.3% 2022 Low leverage $1.00 5.2% Average 2Q 5.1% 95% of the debt has a fixed rate 2022 3Q $0.75 4.7% 4Q $1.00 4.8% Debt 1Q $1.00 4.4% 2023 0.3x Net Debt/EBITDA ratio 2Q $0.80 3.7% 4.3% Average 2023 3Q
Slide 9: Debt Maturity Profile
1Q24 RESULTS GRUPO MEXICO Debt Maturity US Millions Profile 2024 2025 2026 246.6 767.1 51.6 2027 968.5 2028 213.1 2029 507.5 MINING DIVISION 2030 59.8 2031 64.6 TRANSPORTATION DIVISION 2032 69.5 2033 20.7 2034 22.6 INFRASTRUCTURE DIVISION 2035 1,022.4 2036 24.0 2037 25.4 2038 26.6 2039 27.5 2040 1,1
Slide 10: Mining Division
1Q24 RESULTS MAIN HIGHLIGHTS 02 Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation 10
Slide 11: Copper Market
1Q24 RESULTS MINING DIVISION Copper Market Outlook LME Copper Price Expected market deficit in 2024. Low copper inventories. 4.05 1Q23 Strong market demand for 2024. -5.4% Resilient US economy. 1Q24 3.83 New demand from decarbonization technologies. 11
Slide 12: Mining Division Financial Highlights
1Q24 RESULTS MINING DIVISION US$2,818M US$1,470M 267,994 1Q24 SALES 1Q24 EBITDA TONS OF COPPER IN 1Q24 Quarterly sales were 7.4% lower than 2023, as a 11.5% lower than 2023, with a 52.2% margin. An increase of 5.9% vs 2023, mainly due to a result of lower copper (-5.6%, Comex), molybdenum production
Slide 13: Projects Update: Short Term Project Highlights
1Q24 RESULTS MINING DIVISION Projects Update Short Term Project Highlights Buenavista Zinc, Sonora, Mexico (2024): Buenavista Zinc Of the total $439 million capital budget, $383 million have been invested and the concentrator has initiated operations during 1Q24. This year we will produce 54,500 ton
Slide 14: Projects Update: Long Term Project Highlights
1Q24 RESULTS MINING DIVISION Projects Update Long Term Project Highlights Los Chancas Los Chancas, Apurimac, Peru (2031): The Company continues to engage in coordinated efforts with the Peruvian authorities to eradicate illegal mining activity. Once this process is completed, we will restart environ
Slide 15: Continuous Value Creation
1Q24 RESULTS MINING DIVISION Continuous Value Creation Robust Pipeline Region Growth Projects Mexico Project Region El Pilar Peru Production Project 36k tons Cu Ilo Smelter USD USD $310M $1.3 Bn Region Region Region Region Mexico Peru Region Mexico Peru Region Project Project Peru Project Project Me
Slide 16: Transportation Division
1Q24 RESULTS MAIN HIGHLIGHTS 03 Transportation Division Financial Highlights Main Variations Operating Metrics CAPEX 2024 16
Slide 17: Transportation Division Financial Highlights
1Q24 RESULTS TRANSPORTATION DIVISION Financial Highlights 1Q24 US$885M US$397M Transported volume 1Q24 1Q24 SALES 1Q24 EBITDA NET TON-KM CARLOADS A 16.1% increase vs 2023, mainly driven by a revaluation of the exchange rate. 8.6% higher than in 2023. 44.9% margin. +5.9% +10.4% vs 2023. 11.7% higher
Slide 18: Main Variations
1Q24 RESULTS TRANSPORTATION DIVISION Main Variations Revenue 1Q24 | MXN % Revenue Growth Intermodal 16% Significant volume increase in Cross Border FAK and auto parts. Gained market share Domestic MX traffic. Significant increase in grain shuttle train imports as well as market share gains in resins
Slide 19: Operating Metrics
1Q24 RESULTS TRANSPORTATION DIVISION Operating Metrics 1Q24 VS 1Q23 Average train speed Dwell time Cars velocity (KM/HR) (HOURS) (KM/DAY) 0.0% +17.0% -6.0% 21 296.9 38.2 1Q23 1Q23 1Q23 1Q24 1Q24 1Q24 38.1 24.6 280.3 Average train length Gross tons per train Crew starts (METERS) (TONS) (AVERAGE MONTH
Slide 20: CAPEX GMXT 2024
1Q24 RESULTS TRANSPORTATION DIVISION CAPEX GMXT 2024 Million USD Description 2024 Main Projects Maintenance • New Rail & Ties (1) • Locomotive and Machinery Overhauls $303.3 • Track maintenance (2) • Tools and equipment • Bridges, Cuts and Slopes Stabilization (3) Growth • “Pesqueria” Branch (4) • S
Slide 21: Infrastructure Division
1Q24 RESULTS INFRASTRUCTURE DIVISION 04 Infrastructure Division Financial Highlights Relevant Events 21
Slide 22: Infrastructure Division Financial Highlights
1Q24 RESULTS INFRASTRUCTURE DIVISION US$190M US$89M US$10M 1Q24 SALES 1Q23 EBITDA 1Q24 NET INCOME 22.0% higher than 2023. 4.5% higher vs 2023, with a 47.0% margin. These consistent good results are mainly driven by the increase of daily quotas across the 6 drilling rigs, -0.8% decrease vs 4Q23. redu
Slide 23: Relevant Events
1Q24 RESULTS INFRASTRUCTURE DIVISION Relevant Events Oil rigs Enhanced Performance: Driving Infrastructure Growth Perforadora Mexico maintained, alongside consistent profitability improvements, a noteworthy operational efficiency throughout this first quarter of 2024, showcasing a strong rate of 96.
Slide 24: Q&A
1Q24 RESULTS MAIN HIGHLIGHTS 05 Q&A 24
Slide 25: 1Q24 Results
APRIL 2024 = GrupoMexico ] Q24 Results