Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q1 2020 Earnings Presentation
23 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2020
Slide 1: 1st Quarter 2020 Earnings Report
1st QUARTER 2020 Earnings Report
Slide 2: Disclaimer
Disclaimer The material in this presentation has been prepared by [Grupo México, S.A.B. de C.V. (“GM”)] and is general background information about GM’s activities current as at the date of this presentation. This information is given in summary form and does not purport to be complete. Information
Slide 3: Schedule 1Q20
Schedule 1Q20 04 Grupo México’s main highlights Marlene Finny 10 Main highlights of our Mining Division Xavier García de Quevedo Oscar González 14 Main highlights of our Transportation Division Fernando López Guerra 21 Main highlights of our Infrastructure Division Francisco Zinser 24 Q&A session
Slide 4: Main Highlights Grupo México 1Q20
MAIN HIGHLIGHTS GRUPO MÉXICO –1Q20 4
Slide 5: Covid-19 Situation Update
Covid- 19 Situation Update Grupo México continues to operate its essential productive processes. We implemented strict hygiene and protection measures at all its facilities and in the three Divisions to protect the health of its workers, their families, and the nearby communities. Copper is a key ma
Slide 6: Covid-19 Community and Social Wellbeing
Covid- 19 Community and Social Wellbeing ▪ Since the onset of this pandemic, Grupo México has implemented strong prevention, detection, traceability, and care measures, with highly specialized personnel in matters of health and community. USD$11 million in donations and aids to various authorities a
Slide 7: Operations Update
Operations Update COVID-19 Mining Division • Mexico: less than 40 percent of the workforce for essential functions; about 6,000 workers, distributed among 8 mining and metallurgical facilities, 9,000 people have been sent home as a preventive measure. • Peru: Mining is considered essential. 5,500 wo
Slide 8: Scorecard 1Q20
Scorecard 1Q20 Financial performance supports shareholder returns Given the financial strength and competitiveness of our Organization, we have no doubt we will be able to endure this crisis. ▪ Solid Balance Sheet, Comfortable debt maturities, liquidity and solid cash generation. FINANCIAL HIGHLIGHT
Slide 9: Company Highlights
Company Highlights Mi ning OPERATIONS IN PERU +4.3% PRODUCTION -17.3% CASH COST + 39.7% Mo. PRODUCTION We were able to continue operating with Copper production increased 4.3% Molybdenum production in the first close to 5,500 workers (61%) of the total, mainly due to the Toquepala expansion quarter
Slide 10: Grupo México maintains a solid balance sheet; Dividend Payments
Grupo México maintains Dividend Payments a solid balance sheet With a low leverage and a net debt to EBITDA ratio of 1.4x 6.0% 6.8% 7.1% 5.7% 5.7% 7.4% 6.7% 6.4% 3.6% 85% of the debt is in US Dollars, and 15% in Mexican Pesos (MXN). 96% of the debt has a fixed rate. In addition, Grupo $0.80 $0.80 $0
Slide 11: Debt Maturity Profile
Debt Maturity Profile 1,700.0 1,500 1,500.0 1,300.0 1,200 1,108 1,100.0 1,013 1,000 900.0 700.0 624 558 542 500.0 476 310 300.0 194 110 124 103 100.0 45 54 58 62 13 14 14 14 15 16 0 0 0 0 0 0 0 US $MILLONES 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 203
Slide 12: Mining Division
Mining Division 12
Slide 13: Financial Highlights 1Q20
Financial Highlights 1Q20 US$1,794 billion SALES US$700 million EBITDA The Mining Division’s 1Q20 sales were 23.1% lower than 1Q19, with an 6.3% lower than in 1Q19, due to the EBITDA margin of 39.0% during decline in Copper, Zinc and the quarter. Molybdenum prices. . 272,646 tons US$113 million CAPE
Slide 14: Production Short Term Growth Profile
Production Short Term Growth Profile PILARES BUENAVISTA ZINC EL PILAR SONORA, MEXICO SONORA, MEXICO SONORA, MEXICO +35,000 tons Cu +20,000 tons Cu +35,000 tons Cu US $159 Million Total Capex +80,000 tons Zn US$ 310 Million Total Capex US$ 413 Million Total Capex Highlights: Highlights: ▪ Attractive
Slide 15: Transportation Division
455°: Transportation Division = GRUPOMEXICO
Slide 16: Financial Highlights 1Q20
Financial Highlights 1Q20 US$606 million in sales US$281 million in EBITDA A 6.9% increase vs 1Q19, An 13.2% increase from mainly driven by the 1Q19, due to operating Chemical, Agricultural and improvements. Cement segments. 6.6% higher Net Income transportation volume 34.4% higher than 1Q19 due to
Slide 17: 1Q20 Highlights
1Q20 Highlights ▪ Financial Highlights ✓ EBITDA increased 17%, reaching MXN$ 5,577 million. ✓ EBITDA +270Bps vs. 2019. ✓ Operating margin improved by 48.3%., due to a +10.4% increase in revenues and -3.4% reduction in operating costs. ✓ 1Q20 net income reached an all-time record representing a 41.6%
Slide 18: Main Variations
Main Variations Revenue 1Q20 % Revenue Growth 28% Chemicals: Increased volumes due to market share gains from truck to rail conversion of plastics and fertilizers. 27% Agricultural: Market share gains drove an increase in shuttle train imports. High 56% 16% Cement: Increased volumes due to market sh
Slide 19: CAPEX 2020
CAPEX 2020 (Million USD) Description CAPEX CAPEX-COVID Main Projects ▪ New Rail & Ties (1) ▪ Bridges MAINTENANCE ▪ Locomotive overhaul Surfacing $ 191.5 $ 191.5 ▪ ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ Construction and reconfiguration of yards ▪ Transportation Management System
Slide 20: Infrastructure Division
Infrastructure Division = GRUPOMEXICO
Slide 21: Financial Highlights 1Q20
Financial Highlights 1Q20 US$136 million in sales US$80 million A decrease of 5.5% compared to EBITDA during 1Q20 increased the previous year. 24.4% vs 1Q19 with a margin of 58.8%. US$50 million Net profit in 1Q20, showed an increase of 686.9% YOY. 21
Slide 22: Relevant Events
Relevant Events ENERGY GENERATION THE SALAMANCA-LEON HIGHWAY PEMSA 1Q20 EBITDA reached US$36 million During 1Q20, revenues totaled PEMSA ended the quarter with 6 oil with a 64.4% margin, 1,350 basis US$10 million, EBITDA was 1.5% rigs in operation and an average points higher than the 1Q19 EBITDA lo
Slide 23: Q&A
Q&A