Grupo Mexico S.a.b. De C.v. Class B · BMV:GMEXICO/B
Grupo Mexico S.a.b. De C.v. Class B — Q1 2021 Earnings Presentation
24 slides from Grupo Mexico S.a.b. De C.v. Class B's earnings presentation, 2021
Slide 1: 1Q21 Results
SGnupo MexICE 1Q21 Results ‘= GrupoMexico
Slide 2: Disclaimer
1Q21 RESULTS Disclaimer The material in this presentation has been prepared by [Grupo obligation to publicly release the result of any revisions to these México, S.A.B. de C.V. (“GM”)] and is general background in- forward looking statements to reflect events or circumstances after formation about G
Slide 3: Contents
1Q21 RESULTS Contents p.04 p.10 p.14 p.21 p.24 01 02 03 04 05 Grupo México’s Main Highlights of our Main Highlights of our Main Highlights of our Q&A Sessions Main Highlights Mining Division Transportation Division Infraestructure Division 3
Slide 4: Main Highlights
1Q21 RESULTS Main Highlights
Slide 5: ESG at the Core of our Strategy
1Q21 RESULTS ESG at the Core of our Strategy We remain committed and moving towards the adoption of best practices. • For the fourth consecutive year, we have been included in the DJSI MILA. • The company’s 2020 rating in the annual CSA by S&P Global increased to 56 points, +4-point improvement vs 2
Slide 6: Scorecard 1Q21
1Q21 RESULTS Scorecard 1Q21 FINANCIAL PERFOMANCE SUPPORTS SHAREHOLDER RETURN Record Sales Operating Income US$3.43bn US$1.70bn +40.2% vs 1Q20 +140.4% vs 1Q20 Mainly driven by higher copper (+50.4%), molybdenum (+17.0%), gold (+13.6%), zinc (+28.9%) and silver (55.8%) prices YoY Record EBITDA EBITDA
Slide 7: Financial Highlights
1Q21 RESULTS Financial Highlights MOST OF OUR BUSINESS UNITS HAVE SHOWN A STEEP FINANCIAL RECOVERY DURING THE 1Q21. USD 1Q21 1Q20 VA R % REVENUE (MM) 3,435 2,450 40.2% OPERATING INCOME (MM) 1,700 707 140.4% EBITDA (MM) 2,139 1,071 99.7% EBITDA MARGIN 62.3% 7 43.7% CASH 0.88 0.93 -5.5% COST DIVIDEND
Slide 8: Dividend Payments and solid balance sheet
1Q21 RESULTS Dividend Payments Grupo Mexico maintains a 5.9% solid balance sheet $1.50 With a low leverage and a net debt to EBITDA ratio of 0.7x. An 82% of the debt is in US 5.5% Dollars, and 18% in Mexican Pesos (MXN). 94% of the debt has a fixed rate. In addition, $1.25 Grupo Mexico has a comfort
Slide 9: Debt Maturity Profile
1Q21 RESULTS Debt Maturity Profile • Comfortable maturity schedule. • No significant payments until 2035. • Cash Flow increased +19% during the 1Q21 to US$ 4.8 Bn compared to the 4Q20. • Net debt was reduced by -16% compared to the 4Q20. MINING DIVISION TRANSPORTATION DIVISION INFRASTRUCTURE DIVISIO
Slide 10: Mining Division
1Q21 RESULTS Mining Division
Slide 11: Financial Highlights
1Q21 RESULTS Financial Highlights 1Q21 271,312 tons of US $2,801 million in US $0.88 Cash-Cost copper sales (net) 56.1% TOP-LINE INCREASE COST LEADER IN THE INDUTRY WORLDWIDE -0.5% lower than in 1Q20 The Mining Division’s posted record A reduction of 5.5% vs US$0.93 in 1Q20, sales of US$2,801 millio
Slide 12: Project Progress
1Q21 RESULTS Project Progress PROJECT QUARTER HIGHLIGHTS • Pilares, Sonora, Mexico (1Q22) : The construction of the 25-meter-wide road for mining trucks to transport the ore between the Pilares pit and the primary crushing plants in La Caridad began a couple of months ago and is already materially c
Slide 13: Continuous Value Creation
1Q21 RESULTS Continuous Value Creation Robust Pipeline Growth Projects Thousand of Tons +75% Michiquillay +225k 1,983 1,800 El Arco 2028 +190k Copper 1,600 Production Los Chancas Including Tía María +130k Projects 1,400 +120k Buenavista El Pilar Zinc 1,200 Pilares +35k +20k +35k 1,129 1,000 Copper P
Slide 14: Transportation Division
4th QUARTER & 2020 RESULTS Transportation Division
Slide 15: Financial Highlights
1Q21 RESULTS Financial Highlights 1Q21 US $593 million in US $264 million in sales EBITDA A 2.1% decrease vs 1Q20, mainly driven by 6.0% lower than in 1Q20 the Industrial, Automotive and Cement A recovery of 12.8% vs 4Q20 segments, partially offset by the Energy, Metals and Minerals segments. Sales
Slide 16: 1Q21 Highlights
1Q21 RESULTS 1Q21 Highlights Highlights 1Q21 vs 1Q20 Volumes have returned to Pre-COVID levels in most segments at the level of 1Q20 which was our best 1Q ever. Revenue increased 0.3% in MXN, with volume increases on fuel oil and refined products in México, as well as construction materials in Flori
Slide 17: Main Variations
1Q21 RESULTS Main Variations REVENUE 1Q21 % Revenue Growth Energy: Increased fuel oil exports from domestic refineries, LPG imports, as well as the launch High 11% 11% of new routes for refined products. 7% Metals: Volume increase both, raw material and finished products for MX consumption. Minerals
Slide 18: Operating Metrics
1Q21 RESULTS Operating Metrics 1Q21 VS 1Q20 (Jan-Mar) Million MXN Average Train Speed Dwell Time Cars Velocity (km/hr) (hours) (km/ Day) -1.0% -1.5% -2.7% 38.29 38.40 296.7 37.90 282.6 278.4 27.03 26.31 24.05 +0.3% -1.3% -11.1% +5.0% +9.4% -6.2% 1Q 19 1T 19 1Q 20 1T 20 1Q 1T 21 21 1Q 19 1T 19 1Q 20
Slide 19: CAPEX GMXT 2021
1Q21 RESULTS CAPEX GMXT 2021 (MILLION USD) Description CAPEX Main Projects ▪ New Rail & Ties (1) ▪ Bridges (2) MAINTENANCE ▪ Locomotive overhaul Surfacing $ 231.6 ▪ ▪ Rail maintenance ▪ Track Equipment ▪ Tools and equipment ▪ M&S Project’s ▪ Celaya Bypass (5) GROWTH $ 72.4 ▪ Intermodal Terminal (3)
Slide 20: GMXT Outlook 2021
1Q21 RESULTS GMXT OUTLOOK 2021 DOUBLE DIGIT REVENUE GROWTH Million USD Volume 5% - 7% Growth Revenue 10% - 12% Growth $358.3 CAPEX Million USD 20
Slide 21: Infrastructure Division
1Q21 RESULTS Infrastructure Division
Slide 22: Financial Highlights
1Q21 RESULTS Financial Highlights 1Q21 US$ 148 million in sales US$ 60 million EBITDA An increase of 8.3% compared to the previous 25.5% lower vs 1Q20, due to lower year given higher revenues in the energy exchange gain derived from the businesses. Mexican peso depreciation, with a margin of 40.5% S
Slide 23: Relevant Events
1Q21 RESULTS Relevant Events Energy Generation Projects Update ▪ Sales totaled US$81 million; an increase of 46.6% vs New Fenicias Wind Farm 1Q20, mainly driven by an increase in the price of ▪ 168MW renewable project, located in Nuevo Leon, is 94% the gas molecule. complete. Assembly of the wind tu
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