Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q2 2024 Earnings Presentation
24 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, July 2024
Slide 1: 2Q24 Results
2Q24 Results JULY 2024
Slide 2: Disclaimer
2Q24 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 15p 20p 23p Contents 3
Slide 4: Main Highlights
2Q24 RESULTS MAIN HIGHLIGHTS 01 Main Highlights ESG Highlights Scorecard Financial Highlights Balance sheet Debt Maturity Profile 4
Slide 5: ESG Highlights
2Q24 RESULTS GRUPO MEXICO ESG Highlights Sustainability is a key pillar of Grupo Mexico’s business model. Renewable On August 1st, 2024, the Company will start receiving eolic energy from Energy the Fenicias wind farm. This will reduce our CO2 emission by approximately 250.000 tons per year, which i
Slide 6: Scorecard
2Q24 RESULTS GRUPO MEXICO US$8,196M 538,741 TONS OF CU IN 1H24 US$1.16 /LB ACCUMULATED SALES 1H24 NET CASH COST 12.1% vs 2023 An increase of 5.3% vs 1H23 -0.4% vs 2023 27.4% vs 2Q23 4.7% vs 2Q23 A reduction of US$0.29 (-22.1%) vs 2Q23. Mainly due to excellent results in the Mining Division given hig
Slide 7: Financial Highlights
2Q24 RESULTS GRUPO MEXICO Financial Highlights USD 2Q24 2Q23 VAR % 1H24 1H23 VAR% REVENUE (MM) 4,397 3,453 27.4% 8,196 7,314 12.1% OPERATING INCOME (MM) 1,964 1,232 59.3% 3,507 2,962 18.4% EBITDA (MM) 2,332 1,628 43.3% 4,298 3,733 15.1% EBITDA MARGIN 53.0% 47.1% 52.4% 51.0% CASH COST 1.03 1.32 -22.1
Slide 8: Grupo Mexico maintains a solid balance sheet
2Q24 RESULTS GRUPO MEXICO Grupo Mexico maintains Dividend Payments a solid balance sheet 1Q $1.50 6.3% 2022 Low leverage 2Q $1.00 95% of the debt has a fixed rate 5.1% 5.2% Average 2022 3Q $0.75 4.7% 4Q $1.00 4.8% Debt 1Q $1.00 4.4% 2023 0.2x Net Debt/EBITDA ratio 2Q $0.80 3.7% 4.3% Average 2023 3Q
Slide 9: Debt Maturity Profile
2Q24 RESULTS GRUPO MEXICO Debt Maturity US Millions Profile 2024 2025 216 763 2026 50 2027 883 2028 202 2029 466 MINING DIVISION 2030 59 2031 63 TRANSPORTATION DIVISION 2032 68 2033 19 2034 21 INFRASTRUCTURE DIVISION 2035 1,020 2036 22 2037 23 2038 24 2039 25 2040 1,115 Comfortable maturity schedule
Slide 10: Mining Division
2Q24 RESULTS MAIN HIGHLIGHTS 02 Mining Division Copper Market Financial Highlights Projects Update Continuous Value Creation 10
Slide 11: Copper Market
2Q24 RESULTS MINING DIVISION Copper Market Outlook LME Copper Price Expected market deficit in 2024. Strong market demand. 3.85 2Q23 Weak China’s Real State. +15.0% Resilient US economy. 2Q24 4.42 New demand from decarbonization technologies. 11
Slide 12: Mining Division Financial Highlights
2Q24 RESULTS MINING DIVISION US$6,216M US$3,354M 538,741 ACCUMULATED SALES 1H24 EBITDA TONS OF COPPER IN 1H24 Accumulated sales were 10.9% higher than 2023, as 18.3% higher than 2023, with a 54.0% margin. An increase of 5.3% vs 2023, mainly due to a a result of higher copper (2.2%), molybdenum produ
Slide 13: Projects Updates
2Q24 RESULTS MINING DIVISION Projects Updates Tía Maria Arequipa, Perú: As of July 1st, the company has restarted activities on the project, which reflects advances on the social and political fronts in the province of Islay, the Arequipa region and the national level. We reiterate our view that Tia
Slide 14: Continuous Value Creation
2Q24 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 Mexico Peru Region Region Project Project Peru Region Peru Mexico El Arco Los Chancas Proje
Slide 15: Transportation Division
2Q24 RESULTS MAIN HIGHLIGHTS 03 Transportation Division Financial Highlights Main Variations Operating Metrics CAPEX 2024 15
Slide 16: Transportation Financial Highlights
2Q24 RESULTS TRANSPORTATION DIVISION Financial Highlights 1H24 US$1,766M US$764M Transported volume 1H24 ACCUMULATED SALES 1H24 EBITDA NET TON-KM CARLOADS A 12.4% increase vs 2023, given a 10.4% carloads increase and a 5.1% net ton km increase. 2.3% higher than in 2023. 43.3% margin. +5.1% +10.4% vs
Slide 17: Main Variations
2Q24 RESULTS TRANSPORTATION DIVISION Main Variations Revenue 2Q24 | MXN % Revenue Growth Intermodal 23% Volume increase in our cross-border operations. Grain port imports volume increase and recovery of soybean border imports. Refineries showed a better fuel oil car Bulk 2% cycle behavior. Partially
Slide 18: Operating Metrics
2Q24 RESULTS TRANSPORTATION DIVISION Operating Metrics 2Q24 VS 2Q23 Average train speed Dwell time Cars velocity (KM/HR) (HOURS) (KM/DAY) +12.0% +16.0% -12.0% 21.8 284.1 39 2Q23 2Q23 2Q23 2Q24 2Q24 2Q24 34.2 25.4 249.8 Average train length Gross tons per train Crew starts (METERS) (TONS) (AVERAGE MO
Slide 19: CAPEX GMXT 2024
2Q24 RESULTS TRANSPORTATION DIVISION CAPEX GMXT 2024 Million USD Description 2024 Main Projects Upkeep Program • New Rail & Ties (1) • Locomotive and Machinery Overhauls $281.7 • Track maintenance (2) • Tools and equipment • Bridges, Cuts and Slopes Stabilization (3) Growth • “Pesqueria” Branch (4)
Slide 20: Infrastructure Division
2Q24 RESULTS INFRASTRUCTURE DIVISION 04 Infrastructure Division Financial Highlights Relevant Events 20
Slide 21: Infrastructure Financial Highlights
2Q24 RESULTS INFRASTRUCTURE DIVISION US$388M US$229M US$67M 1H24 SALES 1H24 EBITDA 1H24 NET INCOME 15.7% higher than 2023. 79.4% higher vs 1H23. 41.5% higher vs 1H23, with a 59.0% margin. This success stems from consistent good performance and strategic initiatives including the integration of our 8
Slide 22: Relevant Events
2Q24 RESULTS INFRASTRUCTURE DIVISION Relevant Events Energy Fenicias Wind Farm – Start of Operations Our newest wind farm with an installed capacity of 168MW, located in the state of Nuevo Leon, started its testing period in May and began its commercial operations on June 1st, accumulating an EBITDA
Slide 23: Q&A
2Q24 RESULTS MAIN HIGHLIGHTS 05 Q&A 23
Slide 24: 2Q24 Results
JULY 2024 = GrupoMexico 2Q24 Resu Its