GMexico Investor Presentation 2Q15

8/16/2019 GMexico Investor Presentation 2Q15

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Company Overview & HighlightsAugust 2015


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CONTENTS

I. Grupo Mexico Overview

II. Copper Market

III. Mining Division – AMC

IV. Transportation Division – ITM

V. Infrastructure Division – MPD


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I. GRUPO MEXICO OVERVIEW1


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Complementary Divisions with Relevant Growth Potential

Among world’s largest producers ofCu, Mo, Ag & Zn.

Largest and most profitable railroadin Mexico (64% market share).

78 years experience ininfrastructure construction projects.

2

49%

Public

FloatGMEXICOB

MINING TRANSPORTATION INFRASTRUCTURE

Peru

Division

Americas Mining

Corporation (AMC)FM Rail Holding

Mexico Proyectos

y Desarrollo

74.9% 100%

25.1%

Southern

Copper

Corporation

ASARCOInfraestructura

y Transportes

Ferroviarios

Grupo

Ferroviario

Mexicano

FERROSUR FERROMEX

Mexico

Compañía

Constructora

e Ingeniería

86.2% 100% 100% 74%

100% 100% 100% 100%

26%

100% 100%

Perforadora

México

Mexico

Generadora

de Energía

100%

Mexico

Division

100%

ITMStake in GAP*

* IITM owns 10% of Grupo Aeroportuario del Pacifico´s shares


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Significant Cash Generation Capabilities, focused on Organic Growth

► US$ 2.2 Billion

Capital

Expenditure

Program for 2015

► Cash Flowgeneration is

expected to

significantly grow

along with

production

► In 2015 we are

expecting a 13%

increase in

production derived

from our

expansions

Market Cap as of Aug 2015: US$22 B

Millions of USD 2011 2012 2013 2014 LTM³

Copper Pr ice

(Avg. US$ per lb)4 01 3 61 3 34 3 12 2 89

Revenues 10,443 10,183 9,357 9,324 8,985

Mining Division 83% 83% 77% 75% 72%

Transportation Division 16% 16% 20% 21% 21%

Infrastructure Division 1% 3% 4% 6%

EBITDA 5,193 5,006 4,147 3,907 3,686

Net Income 2,472 2,385 1,845 1,703 1,839

Cash & Securities 2,229 3,513 2,589 1,641 2,998

Total Assets 15,201 19,559 19,805 20,204 22,251

Total Debt¹ 3,801 5,584 5,811 5,948 7,846

Shareholder's Equity 7,269 8,293 9,458 9,763 9,989

Capital Expenditures 1,217 2,118 2,852 2,438 2,147

Free Cash Flow² 1,761 1,082 41 21 228

1 Includes short-term and long-term debt

2 Free Cash Flow def ined as net cash from operating activities less capital expenditures

3 Last tw elve months as of June 30, 2015

5


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Key Strategic Catalysts

4

► Expansion program to increase current capacity from

180K to 504K tons by 2016. A production increase of

180%.

► The SX/EW III has been completed and reached its full

capacity in November 2014. The New CopperConcentrator is expected to come in line by the 3Q15 .

► In 2015 we are expecting 163KT of additional production

coming from the expansions.

Buenavista Expansion – Top 3 Cu Mine by 2015

GMéxico –Capex Program in 2015

► We are expecting a US$2.2 Billion Capex program for

2015; 72% to the Mining Division, 20% to the

Transportation Division and 8% to the Infrastructure

Division.

► Our capital expenditures are expected to decline after

2016, which, combined with higher production, will

result in substantial incremental free cash flows.

► Expecting to continue with our quarterly dividend

payment.

Infrastructure Division – Creating Value

► Executing attractive growth infrastructure opportunities

in oil and water drilling services, power production, civil

and industrial engineering.

► During 2014 we delivered the second of the two

combined cycle power plants, the two 400ft platforms,the wind farm and the first tranche of our toll road.

► We expect Infrastructure Division’s EBITDA to reach

~US$400 million by 2016.

Rail Growth – Increasing Market Share

► The Transportation Division will invest 22% of expected

revenues in 2015, while other one class railroads invest

on average 16%.

► When the railroads were privatized, only 19% of freight

was transported by railroad in Mexico. The Company is

confident that with these investments, cargo load by

railroad will increase to 30% by 2018.

► Sixth consecutive year of double digit EBITDA growth.


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II. Copper Market5


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►After 2017 the market will shift into a position of ever

widening deficits 454kt expected in 2018 (CRU).

►COCHILCO has indicated they believe that at the current

price levels about 10% of the country’s production is at

risk. In 2014, Chile produced approximately 5.8 million

metric tons of copper.

►The government of Zambia has increased its royalty

regime from approximately 6% to 20% of the sales value.

This confiscatory taxation will jeopardize their production

and exports. In 2014, Zambia produced 577,000 metric

tons.

Significant decreases to production have been made

at key mines

Copper Consumption Increase of 2.1% in 2015

Estimated by CRU

Copper has the best fundamentals in the basic

materials space

Source: CRU Source:-Wood Mackenzie

Source:-Wood Mackenzie

Long Term price of US$3.50/lb should be the

incentive price to develop new projects

6

Bingham Canyon (75KT)

Escondida (50KT)

Sierra Gorda (150KT)


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III. MINING DIVISION: AMERICAS MINING CORPORATION

49%

Public

Float

100%

Mexico

Division

Peru

Division

Americas MiningCorporation (AMC)

Southern

Copper

Corporation

ASARCO

86.2% 100%

100% 100%

MINING DIVISION

7


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►World Class Assets in The America’s

►Easy Access to Consumers

Mines

Smelters and Refineries

Location of Projects

Key

Location of Operations(Fully Integrated)

USA

Ray Mine, Arizona

Mission Mine, ArizonaSilver Bell Mine, ArizonaHayden Smelter, ArizonaAmarillo Refinery, Texas

Chile, Argentina Ecuador

Exploration Projects in Northern Chile:Ticnamar, Catanave, Santa María, & San Benito.Exploration Projects in South Argentina andSouth Ecuador Chaucha

Peru

Toquepala Mine, Toquepala

Cuajone Mine, Cuajone

Ilo Smelter & Refinery, IloTia María SXEWLos Chancas

Mexico

Buenavista Mine, Sonora

La Caridad Mine, Sonora

La Caridad Smelter & Refinery, SonoraSanta Barbara Mine, ChihuahuaSanta Eulalia Mine, ChihuahuaZinc Refinery, San Luis PotosíSan Martin Mine, ZacatecasTaxco Mine, GuerreroAngangueo, Michoacan

El Arco, Baja CaliforniaEl Pilar Mine, Sonora

. .

►Large Scale Open-Pit Mines, in

Investment Grade Countries

Projects Exploration Projects

8


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Mexico

33%

USA &

Canada

27%China & Asia

19%

LatAm exc.

Mexico & Peru

9%

Europe

7%

Peru

5%

84

34 34

2521 21

18

55

-

10

20

30

40

50

60

70

80

90

AMC Anglo American Codelco FCX BHP Rio Tinto Glencore/Xstrata New AMC After

Expansions

71

57

37

33

27 32

21

1311

0

10

20

30

40

50

60

70

80

A M C

C o d e l c o

F C X

B H P

G l e n c o r e

/ X s t r a t a

A n g l o

A m e r i c a n

R i o T i n t o

A n t o f a g a s t a

V a l e

Largest Pure Copper Player & Diversified Country Asset Base

1H15 Revenue by Market Life of Mine

Copper Reserves as Reported1H15 Revenue by Product

MT

Years

9

AMC* Codelco FXC BHP Glencore/

Xstrata AA Rio Tinto

Antofag

asta Vale

Source 10K Annual Rep. 10K 20F Reserve Rep. Annual Rep. Annual Rep. 20F Annual Rep.

Period 12/31/14 12/31/14 12/31/14 06/30/14 12/31/14 12/31/14 12/31/2014 12/31/14 12/31/14

Cu Price $2.90 N/A $2.00 $3.65 N/A N/A N/A $3.10 $3.35

Copper

82.1%

Silver

3.5%

Molybdenum

4.9%

Sulfuric Acid

2.1%

Zinc

3.7%

Gold

2.4%

Others

0.8% Lead

0.6%


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224

24 2 4 2 4 1 8

399

299

51

986

1,092

1,179

0

200

400

600

800

1,000

1,200

1,400

2 0 1 5

2 0 1 6

2 0 1 7

2 0 1 8

2 0 1 9

2 0 2 0

2 0 2 1

2 0 2 2

2 0 2 3

2 0 2 4

2 0 2 5

2 0 2 6

2 0 2 7

2 0 2 8

2 0 2 9

2 0 3 0

2 0 3 1

2 0 3 2

2 0 3 3

2 0 3 4

2 0 3 5

2 0 4 0

2 0 4 2

Power & Fuel

30%

Operating

Materials

19%

Maintenance

18%

Labor25%

Other

8%

10

AMC Cash Operating Cost Net of By-Products

Cents per pound of Copper

► One of the Lowest Copper Cost Producer, well under the Industry Average.► Significant SX-EW production (22% vs 28%) after expansions.

Source: GMexico / BrookHunt

AMC’s Consolidated Cash Operating Cost AMC Cost Structure

2014 Cost for Copper By Company AMC Comfortable Debt Maturity

Average AMC: 23

0

50

100

150

200

250

300

0 5000 10000 15000 20000 25000 30000 35000

C 1 C a s h C o s t C o m p o s i t e ( c / l b C u )

Cumulative Production (Paid Mlb Cu)

SCC

Rio Tinto

AMC

Antofagasta

CodelcoFreeport Glencore

Anglo

Global average154c/lb

BHP

1.321.29

1.341.32

1.25

1.39

1.22

1.18

1.29

2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15


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11

$ MM ‘000 MT

Source: GMexicoNote: Includes Operating Capex . The Capex budget for 2014 only approved by the board.

Attractive Organic Growth Prospects – Investments to Significantly Increase Production

2015 – 2019 Estimated Capex Program 2015 – 2019 Estimated Copper Sales

Source: GMexico

9601,072

1,2011,331 1,283

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2015 2016 2017 2018 2019

Asarco SCC

1,587

2,105

1,215

649

449

0

500

1,000

1,500

2,000

2,500

2015 2016 2017 2018 2019

As ar co S CC

2013 and 2014 2015 -2017

Delivered Board Approved Pending Approval

Buenavista Buenavista, Sonora, México Empalme, Sonora, México Los Chalchihuites,México

Molybdenum Plant Concentrator Plant Copper Smelter $870M $140M 26K Cu

3Q13 - $38M /2K Tons Mo 3Q15 - $1,400M 300K Tons Cu Cont. El Arco, Baja California, México

Mission 188K Tons Cu / 2.6K Tons Mo Copper Refinery $270M Concentrator & SX/EW

Mill Expansion Toquepala, Perú 300K Tons Cu Cont. $2,600M

3Q13 - $60M/10K Tons Cu Concentrator Expansion Zinc Refinery $600M-120K 190K Tons Cu

Molybdenum Plant 4Q17 - $1,200M Tons Zinc 105K Oz Au

2Q13- $5M / 0.5 Tons Mo 100K Tons Cu / 3.1K Tons Mo Buenavista, Sonora, México Los Chancas, Perú

Cuajone Tia Maria, Perú Zinc Concentrator $1,200MVariable cut-off SX/EW $200M 100K Tons Cu

Grade + HPGR/2H13 - $158M 1Q18- $1,400M 16K Tons Cu + 55K Tons Zn 7.5k Tons Mo22K Tons Cu / 0.7K Tons Mo 120K Tons Cu Ray, Arizona Cuajone, Per

Buenavista El Pilar, Sonora, México Concentrator & SX/EW Concentrator Expansion

SX/EW III 2018 - $300M $TBA $500M4Q14 - $525M 35K Tons Cu 90K Tons Cu / 0.9 Tons Mo 50K Tons Cu120K Tons Cu Aznalcóllar, Sevilla, Spain 0.7 Tons Mo

Polymetallic Deposit - 60K tons Zinc

CAPEX €300M

2018 and on


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12

FM Rail Holding

25.1

Infraestructura

y Transportes

Ferroviarios

Grupo

Ferroviario

Mexicano

FERROSUR FERROMEX

100% 74%

100% 100%

26

TEXAS PACIFICO

100%

Líneas

Ferroviarias

Mexico

100%

74.9%

49%

Public

Float

TRANSPORTATION DIVISION *

* The transportation division owns 10% of GAP’s shares through its subsidiary ITM positioned at the same levelas FM Rail Holding.


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Strong Operating Track Record

► EBITDA margin

has grown from

30% to 38% in the

last quarter

► Conservative debt

profile (2) 0.70x vsindustry peers

average 1.90x

► Sixth consecutive

year of double

digit EBITDA

growth

13

Million of USD 2009 2010 2011 2012 2013 2014

39,205 45,277 52,182 51,344 51,054 51,704

869 1,003 1,070 1,102 1,115 1,164

Revenues 920 1,178 1,632 1,677 1,856 1,995

Operating Income 190 269 327 417 460 490

Operating Margin 21% 23% 20% 25% 25% 25%

EBITDA 273 371 465 559 621 689

Margin EBITDA 30% 31% 29% 33% 34% 35%

Net Income 121 206 157 341 262 347

Total Debt¹ 368 350 492 474 420 403

Shareholder's Equity 1,140 1,406 1,408 1,851 2,001 2,224

Capital Expenditures 124 132 355 259 415 289

1 Includes short-term and long-term debt

2 Debt profile: Total Debt /EBITDA

Load Volumes

Carloads


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Mexico’s largest railroad with a track network of 10,400 km, covering 81% of Mexico’s

territory. Operations in the State of Texas, US.

14

Mexico’s Leading Railroad

Strong Revenue Mix

Agricultural, 27%

Automotive, 12%

Industrial, 11%Mineral, 10%

Chemical, 9%

Energy, 8%

Intermodal, 7%

Siderurgical, 6%

Others, 5%

Cement, 5%


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I. Strategic Growth Areas15


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► Penetration and Market Share.- Exceptional growth potential due to low rail

penetration.

► Automotive.- In 2014 Nissan, Mazda and Honda started assembling in new plants

within our tracks. Audi will start in this year. KIA and BMW in 2016.

► Intermodal.- Expected to be the most dynamic segment in the near future.

► ITM to explore strategic alternatives to create value.

Growth Opportunities for FM Rail Holding

16


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50% 52%

55%53%

55%58%

62% 61% 63% 67%

66% 65% 65% 64% 65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

TON-KM ITM TON-KM Moved by Train %

Truck

75%

Ferromex

14%

Ferrosur

2%

KCSM

8%

Others

1%

Rail

25%

17

FM Rail Holding – Market Share & Penetration

2014 Mexican Railway Load Distribution FM Rail Holding Market's Participation in Tons-KM

Source: SCT

2014 Rail Penetration by Country Growth & Current Participation by Segment

► Energy, Intermodal,Automotive and

Minerals have achieved

a CAGR above 10%

during the last five

years

Source: Company DataSource: OECD; U.S. Bureau Transportation Statistics

62%

54% 53%

36%

25%

0%

10%

20%

30%

40%

50%

60%

70%

Canada United States Australia United Kingdom Mexico

► In 1998 only 8% of freight was transported by railroad in Mexico.

Agricultural

Minerals

Energy

Metals

CementChemicals & Fert.

Intermodal

Automotive

Industrials

0%

5%

10%

15%

20%

25%

30%

0% 5% 10% 15% 20% 25% 30% 35%

Revenue Part. 2014


20/35

The largest shipper in the Automotive Sector in Mexico

►FM Rail Holding has currently access to 11 automotive plants.►4 additional plants to be installed in Mexico by 2016, are within FM Rail Holding’s

network.

Mexico's Automotive Expected Production will

significantly increase FM Rail Holding’s carloads

►By 2017 Mexico's automobile production is expected to increase by

34%.

Source: Bloomberg and Company data

18

117,508

200,875

2.3

2.6

2.9 2.9

3.23.3

3.6

4.4

4.7 4.8

-

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

-

50,000

100,000

150,000

200,000

250,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

ITM (000' carloads) Production (000'.cars)FM Rail Holding(000´carloads)


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Intermodal Segment

Geographically advantaged with improved service capabilityWe have a wide network of intermodal terminals

Source: SCT, Bloomberg, OECD; U.S. Bureau Transportation Statisticsand Company Data.

TEU: Twenty-foot Equivalent Unit19

Prepared to significantly grow this segment by developing

8 New Intermodal terminals to increase our volumes

► Since 2005 Chinese products have become about +33% more

expensive than Mexican products (US dollar terms).

189,296

533,875

-

100,000

200,000

300,000

400,000

500,000

600,000

2008 2013 2014 2015E 2016E 2017E 2018E 2019E

TEU’s Expected Growth


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716780

860

9821,038

0

200

400

600

800

1,000

1,200

2015 2016 2017 2018 2019

23.12

28.4

35.54

0.0

10.0

20.0

30.0

40.0

50.0

2010 2014 2019E

80%

75%

72%

68%

70%

72%

74%

76%

78%

80%

82%

2009 2014 2019E

Significant Investments Resulting in Strong Financial Performance &

Improved Operating efficiencies

20

Operating Ratio

Source: FM Rail Holding

429

522

472 479

394

0

100

200

300

400

500

600

2015 2016 2017 2018 2019

2015-2019 Estimated EBITDAEstimated Capital Expenditures

CAGR

10

US$Million US$Million

Speed (Km/Hr) TN/KM EBITDA Margin

27%

35%

39%

0%

10%

20%

30%

40%

50%

2009 2014 2019E

39,204

51,704

64,880

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

20 09 2014 2019ESource: FM Rail Holding Source: FM Rail Holding Source: FM Rail Holding


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V. INFRASTRUCTURE DIVISION21

100%

Mexico Proyectosy Desarrollo (MPD)

100%

Perforadora

México

(PEMSA)

Mexico

Compañía

Constructora e

Ingeniería

(MCC)

100%Mexico

Generadora

de Energía

(MGE)

100%

49%

PublicFloat

INFRASTRUCTURE DIVISION

Oil & Gas Construction Energy


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MGELa Caridad, SonoraCombine Cycle Power Plants 500 MW

MGEEZaragoza, Oaxaca

Wind Farm Power Plant“El Retiro” 74 MW

TabascoJack-Up

PEMSACd. del Carmen, Campeche- PEMSA Headquarters- Cement Plant

MCCLeón, Guanajuato

Highway Salamanca- León

PEMSAPoza Rica, VeracruzOnshore Drilling base camp“Don Jorge” ATG

ZacatecasJack-Up

ChihuahuaJack-Up

SonoraJack-Up

PEMSA

Infrastructure Division’s operations & projects’ location

MPDCd. De México, DF-MPD Headquarters-GMSI Headquarters

Upcoming platforms to start

-Veracruz Platform Rig-Tamaulipas Platform Rig (Baytown, Texas)

PEMSA

Houston, TexasPEMSA Office

PEMSA

CampecheJack-Up

24


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147

662572

482

175

1,441

0

200

400

600

800

1,000

1,200

1,400

1,600

2011 2012 2013 2014 2015E 2016E &

2017E *

MCC

MGE

PEMSA

Infrastructure Projects that Generate Value and Growth

Capital Expenditures

30

MPD EBITDA and Margin %

MPD Revenues GMexico 2016 Estimated EBITDA Contribution

**Estimated copper price US$2.50/lb**Estimated FM Rail Holding’S Tn/Km 56,673

$ MM $ MM

$ MM

69108

208

270

405

31% 36%

37%45%

41%

30%

40%

50%

60%

70%

80%

-

100

200

300

400

500

2012 2013 2014 2015E 2016E

223

305

562 603

986

0

200

400

600

800

1,000

1,200

2012 2013 2014 2015E 2016E

MCC

MGE

PEMSA

Mining

70%

Rail

20%

Infrastructure

10%

* CAPEX for 2016 &2017 is not approved by the Board of Directors. Thus, it is a preliminary estimated number.


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Infrastructure Divisions Overview

Perforadora México(PEMSA)

Oil & Gas

► 55 years working alongside

PEMEX

► Main assets located in

Campeche, Tabasco, Puebla &

Veracruz

► Recent state of the art assets

for the offshore división

► Supplier of choice with PEMEX

in certain oil services (e.g.

cement)

Main Assets

• 5 Jack-up Rigs

• 2 Platform Rigs (“modular”)

• 3 onshore drilling equipments

• Cement Plant for offshore

• Integrated services base

camp

Projects

• Participation in PEMEX’s

Round One

México Generadora de Energía(MGE)

Power

► Newest division in the

infrastructure division

► Created in 2010

► Generates power for our own

mining & railroad operations

and for third parties (e.g.

Cinemex)

Main Assets

• Two C.C power plants(250MW each):

• One operating since 3Q14

• Second operating since

3Q14

• 74MW Wind Farm,

operating since 2Q14

Projects

• Peñas Prietas Wind Farm

• Cogeneration projects

México CompañíaConstructora (MCC)

Construction

► Relevant experience in the

construction industry

► 78 years developing

infrastructure projects

Main Assets

• Construction & Operation for

30 years of Leon-

Salamanca toll road

• 24 month construction

• Lenght 78KM

• The first tranche came inline on 4Q14

Grupo México Servicios deIngeniería (GMSI)

Engineering

► Provides engineering

services

► Created 1998 and fully

acquired by GM in 2011

► Specializes in the industrial

sectors such as:

• Mining/ Metallurgy

• Refining/Petrochemical

• Pipelines

• Infrastructure

► The main areas of expertise

in the engineering projects:

Feasibility studies

Conceptual & Detailed

Engineering

Project Management

22


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With our companies, Grupo Mexico covers most of the opportunities in Mexico's

National Development Plan

Grupo Mexico covers

72% of the

development plan

Sectors of

Main Focus

Perforadora Mexico

(PEMSA)

Mexico Generadora de

Energía

(MGE)

Mexico Compañía

Constructora (MCC)

ITM

• 84 Projects

• US$ 2 Bn

investment

• 5% totalestimated

investment

• 170 Projects

• US$19.6 Bninvestment


investment

National Development Plan

2014-2018

Construction &

TransportationHydraulic Health &

Tourism

• 124 Projects

• US$ 254 Bninvestment


investment

• 4 Projects

• US$ 143 Bn

investment


investment

• 223 Projects

• US$ 101 Bninvestment


investment

• 138 Projects

• US$ 46 Bn

investment


investment

Oil & Gas Urban

Development

Power

23

Grupo México Servicios de Ingeniería (GMSI)

Grupo México Servicios

de Ingeniería (GMSI)


28/35

Onshore Drilling

Overview

► Expertise in some of

the most difficult oil

fields and in most

onshore regions

(Poza Rica, Tabasco)

► Successfully

concluded a recent

contract for onshore

integral drilling in

ATG (development of

159 wells)

►First Mexican drilling

Company to perform

horizontal wells

►3 onshore drilling

equipments

• 2 x 1,000hp

• 1 x 1,500hp

PEMSA Onshore Drilling & Drilling services

Drilling FluidsEngineering

Overview

► Provides drilling

fluids services since

2007

► Operations in “Don

Jorge” base camp for

ATG

► Offers several types

of services:

Oil--based drilling

fluids

Water-based

drilling fluids

Crystal clear

brines

► Portable drilling

fluids plant with

1,000m3 capacity

► Currently evaluating

the construction of a

drilling fluids plant for

offshore services in

Cd.Carmen.

Well CementingEngineering

Overview

► Cementing services to

offshore and onshore

oil Wells for PEMEX

and third parties

since 2005

►2 cement plants:

Cd. Del Carmen

1,000 ton

Poza Rica: Portable

plant with 720 ton

capacity

► Cementing Services

include:

Primary and

intermediate casing

cementingProduction casing

and liners cementing

Special slurrys H2S

resistant

Cementing services

on Deep and shallow

waters

Directional DrillingServices

Overview

► Directional Drilling

services for offshore

and onshore drilling

since 2007

► Main directional

drilling equipment:

Measurement-While-

Drilling (MWD)

Logging-While-

Drilling (LWD)

Pressure-While-

Drilling (PWD)

Rotary Steerable

Systems (RSS)

► Workshop locations

for Directional

Drilling

Cd. Del Carmen

Poza Rica

(1,200M3)

Hydraulic FrackingServices

Overview

► Strategic Joint Venture

with C&J that allows

PEMSA to provide

Hydraulic Fracking

services

► Offers well completion

services for PEMEX

and third parties

► C&J is a Premium

provider of hydraulic

fracturing and coiled

tubing services

► The Company is listed

in NYSE with a market

cap of US$1.4billion

► Main operation in themost active US shale

basins

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Year built: 2012

Delivery date: Oct/2012

Operating water depth: 300ft

Max drilling water depth: 30,000ft

Design: F&G Super M2

Living quarters capacity: 110 men

Variable load: 9,000 kips

Year built: 2011

Delivery date: Abr/2012



Design: F&G Super M2



Description

PEMSA - Offshore Drilling

Year built: 1979

Last modification: 2009



Design: Marathon Le Tourneau



“Chihuahua” Jack -up “Zacatecas” Jack -up“Sonora” Jack -up

Description

PEMSA Offshore Drilling Assets

Description Year built: 2013

Delivery date: Jan/2014



Design: F&G JU-2000E



“Tabasco” Jack -up

Year built: 2014

Delivery date: Sep/2014



Design: F&G JU-2000E



“Campeche” Jack -up

Description

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Description

Description Year built: 2014

Delivery date: 2Q/2015

Rig type: Platform rig (modular)


Design: Drillmec, 3,000 HP


Description

“Veracruz” Platform Rig

Year built: 2014

Delivery date: 4Q/2015

Rig type: Platform rig (modular)


Design: Drillmec, 3,000 HP


“Tamaulipas” Platform Rig

Description

Operating Assets

Under Maintenance

In process


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The Oil & Gas Opportunities for Controladora de Infraestructura Petrolera México(CIPM) will focus on …

Main

Opportunities

that will be

evaluated

►The company's experience / ability to use its currentassets. Mainly focus on fields of land, and shallow waters

►Interesting economic potential. Proven fields is

privileged with measured reserves (2P) attractive for

exploitation and those close to existing fields with good

production.

►Cogeneration projects

Grupo Mexico has entered its registration request to participate in phase 2 of round one,

concerning the exploitation of oil fields in shallow waters.

Round 1

Phase 2 Shallow waters areas

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Energy Division (MGE) Assets in Operation

Pipeline for Gas Transportation

Overview

► From Agua Prieta to Nacozari, Sonora

► 100 Km

► 16” Capacity

► Operated by Mexicana de Cobre

(Minera Mexico)

► For self supply in our refining complex

and C.C Power Plants

► El Paso Natural Gas Supplies the

natural gas

Combined Cycle Power Plants

Overview

► Two combined cycle power plants

► 250 MW each

► Both in Nacozari, Sonora

► US$620MM invested in this assets

► Both currently in operation

► Both for self supply

Wind Farm

Overview

► One 74 MW Wind Farm

► 37 turbines to produce 239 GWH per

year

► Juchitán, Oaxaca

► Total investment of US$149 MM

► For self supply and third parties (Grupo

Mexico´s related Company)

► Currently under operation since June

2014

These investments are generating significant value in terms of cost savings in power for the Mining Division and at the same time

generating significant cash-flows.

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The investment Opportunities for MGE will focus on …

Main

Opportunities

that will be

evaluated

Current

Business

Focus

Potential

Business

Focus

►Additional investments to generate energyfor own consumption.

►Combined cycle Power Plants

►Alternative Power “Green Energy”

• Wind Farms

• Hydroelectric

• Solar Fields• Cogeneration

►Licenses for Geothermic fields

Grupo Mexico is studying different energy generation projects to meet the consumption that is

currently supply by CFE.We seek to satisfy 100% of Group Mexico energy demand and to supply third parties.

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The investment Opportunities for MCC will focus on …

• New airports (E.G

Palenque)

• Upgrade in some

airports to enhance

the conectivity in the

country

• Does not include

Mexico City´s airport

• Upgrade thecurrent fleet

• New railways lines

for passengers

• New bus terminals

National Development Plan 2014-2018

Airports Public Transportation

• 46 new higways• Optimize the current

railway operation

• More railway lines to

increase the load by

train

• Streghten the actual

port capacities

• New ports

• New terminals at

existing ports

Highways Railroad Ports

Construction

(SCT)

Main Objectives:

• Global Logistics Platform

• Modern passenger mobility throughout the country29


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Low cost leader with fully integrated operations

Strengthened position as top copper producer

Growing railroad and logistics operation with

improved efficiency and profitability

# 1 worldwide reserves with excellent organic growth prospects

Strong financial performance / investment grade credit rating

Experienced Management team

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Strategically positioned to execute on Infrastructure growth opportunity

Reasons to Invest in Grupo Mexico


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Safe Harbor Statement

This presentation contains certain statements that are neither reported financial results nor other

historical information. These estimates are forward-looking statements within the meaning of the safe-

harbor provisions of the Mexican securities laws. These forward-looking estimates are subject to risk

and uncertainties that could cause actual results to differ materially from the expressed in the

forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond

Grupo Mexico’s ability to control or estimate precisely, such as future market conditions, commodity

prices, the behavior of other market participants and the actions of governmental regulators. Readers

are cautioned not to place undue reliance on these forward-looking statements, which speak only as

of the date of this presentation. Grupo Mexico does not undertake any obligation to publicly release

any revision to these forward-looking estimates to reflect events or circumstances after the date of this

presentation.

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GMexico Investor Presentation 2Q15

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