23 Strength and determination Annual Report n o i t a n i m r e t e d d n a h t g n e r t S 3 2 0 2 T R O P E R L A U N N A gmexico.mx Index 04 08 26 44 56 66 90 Letter to Shareholders Grupo México Results Mining Division Transportation Division Infrastructure Division Fundación Grupo México and Community Development Board of Directors and Management Team 2 BUENAVISTA DEL COBRE MINE, CANANEA, SONORA, MEXICO. INFORME ANUAL 2021 Letter to Shareholders 3 2 0 2 t r o p e R l a u n n A 4 l s r e d o h e r a h S o t r e t t e L 4 TEQUILA TRAIN, JALISCO, MEXICO. In the national and international context of regulatory changes and economic and social uncertainty that defined the year 2023, Grupo México reiterated its commitment to growth and, at the same time, took advantage of new business opportunities. As a result, the Grupo's capital investments for the year totaled US$1.91 billion dollars. Our strength, determination and long-term vision are decisive factors in achieving positive operating and financial results. Despite the volatile environment, in the Mining Division we consolidated the Pilares project in Sonora during 2023, which reached its total annual production capacity of 30 thousand tons of copper concentrates. Therefore, copper production grew 2.3 percent to 1,029,854 annual tons, which in part is also due to the efficiency of SPCC's operations in Peru and ASARCO's operations in Arizona. The results that our company has achieved have been possible thanks to 5 the perseverance, dedication and talent of our more than 30,000 highly specialized direct employees in the four countries where we operate, as well as the trust of our shareholders, who contribute capital to embody this great group of companies. INFORME ANUAL 2021 3 2 0 2 t r o p e R l a u n n A 6 l s r e d o h e r a h S o t We have two highways in Guanajuato with a traffic flow of more than 10 million vehicles. Our commitment to environmental care, governance and best social practices is permanent and is consolidated as a fundamental factor of our business model. In Fundación Grupo México, and after nine years in operation, Dr. Vagón, the Health Train, successfully completed its scheduled routes on our tracks, covering 23 states in Mexico, 39 communities and 12,153 kilometers. This year, Dr. Vagón provided more than 245,000 free medical services. Through the Escuchar Sin Fronteras (Hearing Without Borders) program, the foundation implanted 40 cochlear devices 2023. On the environmental front, the foundation donated 3.2 million trees from our seven nurseries to 152 municipalities through its Restauración de Cuencas (Watershed Restoration) and Islas Verdes (Green Islands) programs. We continue to produce more than 6.2 million trees annually. Regards, GERMÁN LARREA Chairman of the Board 7 7 r e t t e L SALAMANCA-LEON HIGHWAY, GUANAJUATO, MEXICO. 8 | 9 8 | 11 3 2 0 2 t r o p e R l a u n n A Grupo México results In 2024, we expect to see significant growth in terms of copper and zinc production as a result of our Pilares and Buenavista Zinc projects. Grupo México Thousands of dollars Fourth Quarter Variation January - December Variation 2022 2023 Thousands of USD % 2022 2023 Thousands of USD % Revenues $ 3,787,672 $ 3,412,115 $ (375,557) (9.9) $ 13,870,313 $14,366,895 $ 496,581 3.6 Cost of sales $ 1,667,298 $ 1,768,312 $ 101,014 6.1 $ 6,445,020 $ 6,940,866 $ 495,846 7.7 Operating Profit $ 1,623,929 $ 1,098,534 $ (525,395) (32.4) $ 5,650,444 $ 5,433,042 $ (217,402) (3.8) EBITDA $ 2,089,024 $ 1,544,135 $ (544,889) (26.1) $ 7,138,944 $ 7,059,559 $ (79,385) (1.1) EBITDA Margin 55.2% 45.3% 51.5% 49.1% Net Profit $ 872,305 $ 638,025 $ (234,280) (26.9) $ 2,855,530 $ 2,935,346 $ 79,816 2.8 Profit Margin 23.0% 18.7% 20.6% 20.4% Investments Employees $ 511,024 $ 501,726 $ (9,298) (1.8) $ 1,542,361 $ 1,909,323* $ 366,962 23.8 30,086 30,702 616 2.0 30,086 30,702 616 2.0 * Includes acquisition of Planigrupo (US$248 million) Grupo México employed over 30,000 direct employees and 110,000 indirect employees throughout the year. 8 i s t l u s e R o c x é M o p u r G 9 9 400-TON DIESEL/ELECTRIC ORE TRUCK IN CANANEA, SONORA, MEXICO. INFORME ANUAL 2021 3 2 0 2 t r o p e R l a u n n A 10 i s t l u s e R o c x é M o p u r G Sales by Division Thousands of dollars Infrastructure 2.7% Transportation 21.7% Mining 75.6% $392,912 $3,113,146 $10,860,837 $14,366,895 Net Income by Division Thousands of dollars Infrastructure 1.9% Transportation 16.6% Mining 81.6% $54,783 $481,809 $2,372,331 $2,935,346 11 11 ORE CONVEYOR BELT, BUENAVISTA DEL COBRE, CANANEA, SONORA, MEXICO. * The sum is different from the total due to intercompany transactions. We reinvested US$1.91 billion, 65% of our profits. 12 | 3 2 0 2 t r o p e R l a u n n A Realized sales Mexico US Europe Asia LATAM* 40.8% 20.3% 16.6% 13.7% 8.6% * Does not include Mexico. Total US$14.36 billion 12 i s t l u s e R o c x é M o p u r G Capital Investments Focused on generating long-term value, we invested US$1.91 billion in 2023— a 24% increase compared to 2022. For 2024, we have an investment plan of approximately US$1.97 billion as a company in different projects to continue generating a positive impact through job creation and economic benefits in the countries where we operate. Investments (millions) Mining 2023 2024 US$ 1,166 US$ 1,231 Transportation Infrastructure Total US$ 427 US$ 491 US$ 317 US$ 248 US$ 1,910 US$1,970 13 We are the fifth largest copper producer in the world. 3 2 0 2 t r o p e R l a u n n A 14 i s t l u s e R o c x é M o p u r G Consolidated Debt 76% of the debt contracts are dollar-denominated, and 24% are peso-denominated. 95% of the debt has a fixed rate with excellent terms. Gross debt is US$8.91 billion and net debt is US$2.32 billion with a ratio of 0.3x net debt to EBITDA. Grupo México has a maturity schedule with comfortable payments for the next few years. Grupo México Maturities As at December 31, 2023 Mining Division Transportation Division Infrastructure Division 1,600 1,400 1,200 1,000 800 600 400 200 0 1,500 1,200 1,112 1,021 1,000 15 956 765 509 248 211 52 59 64 68 19 21 22 24 25 26 4 2 0 2 5 2 0 2 6 2 0 2 7 2 0 2 8 2 0 2 9 2 0 2 0 3 0 2 1 3 0 2 2 3 0 2 3 3 0 2 4 3 0 2 5 3 0 2 6 3 0 2 7 3 0 2 8 3 0 2 9 3 0 2 0 4 0 2 0 1 4 0 2 2 4 0 2 0 3 4 0 2 0 6 4 0 2 4 4 0 2 5 4 0 2 0 0 7 4 0 2 8 4 0 2 9 4 0 2 0 5 0 2 CRANE MOVING CONTAINERS AT INTERMODAL TERMINAL IN SILAO, GUANAJUATO, MEXICO. US$ Million 3 2 0 2 t r o p e R l a u n n A 16 i s t l u s e R o c x é M o p u r G SILVER BELL MINE PIT, ARIZONA, USA. Stock performance and dividend payments Grupo México maintains its commitment to generate value for its shareholders, seeking sustained growth and striving to increase productivity with a focus on cost optimization. During 2023, the company maintained the average dividend yield at levels of 4%. GMEXICO share price vs. Average Copper Price - COMEX January - December 2023 Share price COMEX copper price (MXN/lb)* The company's shares appreciated 38% in pesos and 59% in dollar terms during the year, significantly outperforming the annual returns of the Mexican stock market index (IPC) in 74.18 69.40 94.18 66.03 peso terms by 18%. Grupo México closed the year as one of 2023 Feb Mar Apr May Jun Jul Agu Sep Oct Nov Dec the largest companies on the Mexican Stock Exchange (BMV) in terms of market capitalization and marketability. * Equivalent average price in Mexican pesos 17 ENEFEBMARABRMAYJUNJULAGOSEPTOCTNOVDICPrecio de la acción GmexPrecio promedio del cobre - COMEX 3 2 0 2 t r o p e R l a u n n A 18 i s t l u s e R o c x é M o p u r G Credit Profile We are proud to share that, in 2023, credit rating agencies Fitch and S&P confirmed Grupo México's BBB+ credit rating, with a stable outlook. The rating agencies emphasized the benefits that Grupo México obtains from the diversification of its businesses, in addition to its leadership as one of the largest copper producers in the world, with a remarkable track record in project development and a portfolio with significant organic growth. Thanks to the discipline followed for many years and to significant investments in exploration, we are the copper producer with the lowest cash-cost in the industry worldwide and number one in copper reserves. 19 INTERMODAL TRAIN IN CUYUTLAN, COLIMA, MEXICO. 3 2 0 2 t r o p e R l a u n n A 20 i s t l u s e R o c x é M o p u r G FLAMINGOS ARE MIGRATORY BIRDS, FEEDING ON SMALL CRUSTACEANS THAT LIVE IN THE WETLANDS, WHICH PRODUCE THE PINK COLORATION OF THEIR PLUMAGE. GRUPO MÉXICO REMEDIATED THE BAY OF ITE AND CREATED ONE OF THE MOST IMPORTANT WETLANDS IN THE AMERICAS. The Ite wetlands are part of Grupo México's daily efforts as part of its strategy to preserve and protect biodiversity and ecosystems at all levels. Over 20 years, Grupo México has developed one of the largest ecosystems for biodiversity conservation at Ite. Parcels of land were built and flooded; vegetation was introduced. Canals, floodgates and spillways were built to control water levels and today the water quality and the flora and fauna populations that live there are constantly monitored. 1,600 hectares, the largest in Peru. 150 resident and migratory bird species. 25 years working on the recovery of Ite Bay. 21 3 2 0 2 t r o p e R l a u n n A 22 i s t l u s e R o c x é M o p u r G AMERICAN OYSTERCATCHER. SHOREBIRD THAT FEEDS ON MARINE MOLLUSKS. ITS GLOBAL POPULATION IS 3,000 INDIVIDUALS AND IT IS CONSIDERED AN ENDANGERED SPECIES. The wetlands of Ite are composed of shallow water bodies, floating grasses, cattails and reeds, as well as grassland areas. Greater biodiversity With 15,000 resident and migratory birds, Ite is the wetland with the greatest diversity of birds of all the wetlands inventoried in Peru. There are currently more than 150 bird species registered, certified by the National Forestry and Wildlife Service of Peru (SERFOR, for its spanish acronym), 50% of which are resident and 50% migratory. Wetlands represent 6% of the planet’s surface. 23 2323 FLORA OF THE ITE WETLAND. 3 2 0 2 t r o p e R l a u n n A 24 i s t l u s e R o c x é M o p u r G Highlights In 2023, Grupo México paid US$2.72 billion in taxes in Mexico, Peru and the United States. 2021 2022 2023 Var. % 2023/2022 2021 2022 2023 Var. % 2023/2022 Volumes sold * Copper Zinc Silver Gold Molybdenum (tons.) (tons.) (thousands of ounces) (ounces) (tons.) 1,058,348 91,570 20,115 42,428 30,319 985,438 101,140 19,830 52,763 26,266 Average price (dollars) Copper (COMEX) (pound) Zinc (LME) (pound) $ 4.24 $ 1.36 $ 4.01 $ 1.58 Silver (COMEX) (ounce) $ 25.18 $ 21.76 1,012,623 99,677 19,078 43,504 26,875 $ 3.86 $ 1.20 $ 23.41 Gold (LF) (ounce) $ 1,799.58 $ 1,800.80 $ 1,942.74 Molybdenum (MW DEALER OXIDE) (pound) $ 15.85 $ 18.76 $ 24.14 Volumes transported Net tons-kilometers (million tons.) 69,252 63,114 Carloads (thousands of units) 1,908.4 1,885.5 65,400 1,881.8 Balance sheet (millions of dollars) Current Assets Fixed Assets Total Assets Bank Liabilities Total Liabilities Total Shareholders’ Equity Income Statement (millions of dollars) Total Sales Cost of Sales Taxes Incurred*** EBITDA Net Profit $ 10,312 $ 10,099 $ 10,634 $ 16,970 $ 17,342 $ 30,359 $ 30,334 $ 8,782 $ 8,396 $ 13,584 $ 16,775 $ 12,547 $ 17,787 $ 18,357 $ 32,355 $ 8,801 $ 13,307 $ 19,048 $ 14,777 $ 13,870 $ 14,367 $ 5,565 $ 2,453 $ 8,933 $ 3,706 $ 6,445 $ 1,893 $ 7,139 $ 2,856 $ 6,941 $ 1,792 $ 7,060 $ 2,935 3 (1) (4) (18) 2 (4) (24) 8 8 29 4 (0) 5 6 7 5 6 7 4 8 (5) (1) 3 Cash flow (millions of dollars) Generated by the Operation Dividends Paid Taxes Paid*** Applied to Financial Activities Used in Investments Cash Flow after Investments and Financial Acts. Financial Ratios Operating Margin EBITDA Margin Current Assets to Current Liabilities (times) Total Liabilities to Total Assets Debt /Total Stockholders’ Equity + Debt $ 5,627 -$ 2,872 $ 2,964 -$ 228 -$ 1,362 $ 1,165 51% 60% 2.2 45% 34% $ 4,136 -$ 2,461 $ 3,336 -$ 572 -$ 1,542 -$ 439 41% 51% 2.4 41% 32% $ 5,144 -$ 2,282 $ 2,724 - $ 246 -$ 1,910 ** 24 (7) (18) (57) 24 $ 956 (318) 38% 49% 2.4 41% 32% (7) (5) 1 (1) (1) (6) EBITDA/Interest (times) 16.24 13.32 12.54 Grupo México Employees Annual Inflation Mexico United States Peru Average Exchange Rate Mexico Peru 29,707 30,086 30,702 2 7% 7% 6% 8% 6% 8% 5% 3% 3% (pesos/dollar) (soles/dollar) $ 20.28 $ 3.88 $ 20.12 $ 3.84 $ 17.76 $ 3.75 (38) (50) (63) (12) (2) 25 Stated in accordance with US Generally Accepted Accounting Principles (US GAAP) * Throughout the report, tons are metric and ounces are troy. ** Includes acquisition of Planigrupo. *** Taxes Incurred refers only to income tax; Taxes Paid includes all taxes (income tax, VAT, withholdings, etc.) Mining Division MISSION MINE, SAHUARITA, ARIZONA, UNITED STATES. Dr. Vagón, el Tren de la Salud en Viaducto Ferroviario Manzanillo, Colima, México. UNDERGROUND MINE EMPLOYEE. US$10.86 billion in mining sales in 2023 3 3 2 2 0 0 2 2 l t a r o u p n e A R e m a u r o n n n A f I l LA CARIDAD CONCENTRATOR PLANT, NACOZARI DE GARCÍA, SONORA, MEXICO. Mining Division Thousands of dollars Revenues Cost of sales January - December Variation 2022 2023 Thousands of USD % $ 10,968,118 $ 10,860,837 $ (107,281) (1.0) $ 5,304,370 $ 5,413,164 $ 108,795 2.1 Operating Profit $ 4,542,736 $ 4,264,960 $ (277,776) (6.1) EBITDA $ 5,652,726 $ 5,269,878 $ (382,848) (6.8) EBITDA Margin 51.5% 48.5% Net Profit Profit Margin Investment Actual tax rate $ 2,456,863 $ 2,372,331 $ (84,532) (3.4) 22.4% 21.8% $ 1,084,765 $ 1,166,022 $ 81,257 7.5 38.1% 36.3% 28 i i i n o s v D g n n M i i Americas Mining Corporation (AMC) is a U.S.-based company of Grupo México that owns mining concessions and operations in Mexico and Peru, ASARCO with three mines and plants in the United States, and Minera Los Frailes in Spain. In 2023, we were the largest copper producer in Mexico and Peru, and the third largest in the United States. Throughout the years, we have continuously and consistently invested most of our profits. We have several important projects for the organic growth of the company. The mining investments that we will make are: 29 a) US$665 million in Mexico b) US$344 million in Peru c) US$157 million in the United States Total: US$1.16 billion INFORME ANUAL 2021 3 2 0 2 t r o p e R l a u n n A Baja California 01 Arizona 16 03 02 24 05 22 04 Sonora 18 06 38 09 19 25 Chihuahua 11 39 20 12 17 Texas 13 26 Zacatecas 14 21 S.L. Potosi Mexico City 40 27 Michoacan 15 Guerrero PACIFIC OCEAN Mining OPEN PIT MINES POLYMETALLIC UNDERGROUND MINES PROJECTS GULF OF MEXICO Spain 33 01 Ray 02 Mission 03 Silver Bell MINE AND PLANT 04 Planta de Cal 05 Buenavista de Cobre 06 La Caridad 07 Tantahuatay GOLD MINE 11 Santa Eulalia 12 Santa Barbara 13 San Martin 14 Charcas 15 Taxco PLANTS 16 Hayden 17 Amarillo 30 08 Cuajone COPPER MINE 09 Pilares COPPER 10 Toquepala COPPER MINE i i i n o s v D g n n M i i 18 Complejo Metalurgico 19 Terminal Guaymas 20 Taller Central 21 Refineria Electrolitica de Zinc 22 Buenavista Zinc 23 Ilo 24 El Pilar COPPER 25 El Arco COPPER 33 Los Frailes POLYMETALLIC 34 Caldera GOLD AND SILVER 26 Chalchihuites 35 Cañadon del Moro POLYMETALLIC UNDERGROUND MINE SILVER Ecuador 27 Angangueo POLYMETALLIC UNDERGROUND MINE 28 Chaucha COPPER 29 Los Chancas COPPER 30 Tia Maria COPPER 31 Catanave COPPER 32 Michiquillay GOLD AND COPPER 36 La Hoyada COPPER 37 Esperanza GOLD AND SILVER OFFICES 38 Hermosillo CORPORATE 39 Chihuahua CORPORATE 40 Mexico CORPORATE 41 Lima CORPORATE Peru 28 07 32 41 29 30 10 23 08 31 Chile 35 34 36 37 Argentina 31 INFORME ANUAL 2021 Contamos con los mayores recursos minerales de cobre a nivel mundial Construction 20% Copper Copper is present in our daily lives, from its most everyday uses as a comprehensive part of the food and drinking water supply or in our cell phones, to the role it plays in the development of new technologies that enable the decarbonization of the economy. Its main uses are: Power grid 44% To have electrical energy in a home, copper is used in components such as: Used for the wiring of: • Transmission and distribution cables • Transformers • Grounding conductors • Connections and terminals • Electrical substations • Grounding systems • Power generation equipment There can be up to 200kg of copper in a house. • Electrical cables • Structures • Water piping and plumbing systems • Roofing and coatings • Heating and air conditioning systems • Antibacterial coatings • Facade components • Lightning protection systems • Lighting systems • Fire protection systems • Industrial machinery 33 3 2 0 2 t r o p e R l a u n n A 32 i i i n o s v D g n n M i i Contamos con los mayores recursos minerales de cobre a nivel mundial 3 2 0 2 t r o p e R l a u n n A Transportation 12% Appliances and electronics 14% It is the most common raw material used in the manufacture of household appliances that use electric motors. • Refrigerators and freezers • Washers and dryers • Blenders and food processors • Ovens and stoves • Televisions and electronic devices • Fans and exhaust fans • Computers • Smartphones and tablets • Monitors Others • Digital cameras and camcorders • Videogame consoles • Network devices, routers, modems 10% It is present in: It is present in: 34 • Automobiles and land vehicles • Brake, antilock, electronic fuel injection, fuel, and air conditioning systems • Chips and sensors • Trains and streetcars • Electrification of tracks, control and communication systems, engines and lighting systems for railcars • Ships and vessels • Electric propulsion, communication and navigation systems • Aircraft and airships i i i n o s v D g n n M i i • Electric cars, engines, batteries, charging and cooling systems • Aerospace industry, electric propulsion systems • Marine industry, seawater desalination systems and corrosion protection equipment • Food industry, food processing equipment, refrigeration equipment and temperature control systems • Healthcare, manufacturing of medical and surgical equipment, diagnostic devices, medical imaging equipment 35 3 2 0 2 t r o p e R l a u n n A Tons of copper produced Concentrators SX/EW 2022 Concentrators SX/EW 2023 Minera México 436,259 116,624 315,370 79,707 26,451 32,525 552,883 341,820 112,232 426,330 110,546 348,884 86,163 25,253 32,678 536,876 374,137 118,841 831,336 175,599 1,006,935 861,377 168,477 1,029,854 SPCC ASARCO Total Share % and var. vs. 2022 82.6% 17.4% 83.6% 16.4% 2.3% Summary of production of other metals (tons) Mine Product Zinc Lead Gold (ounces) Silver (ounces) Molybdenum Refined metals and semi-processed products Product High purity refined copper Copper Rod Refined Zinc Refined Gold (ounces) Refined Silver (ounces) 36 Sulfuric acid Cadmium Lime 2021 2022 2023 66,958 17,104 60,631 60,010 16,590 65,134 65,509 18,746 65,372 20,234,222 19,663,241 19,527,146 30,262 26,240 26,836 2021 2022 2023 668,210 245,003 92,672 42,628 710,994 203,787 99,893 43,307 676,697 154,304 101,013 37,667 13,690,329 14,271,702 10,926,675 2,228,926 2,393,615 2,415,234 526 274,403 671 346,066 513 240,000 37 i i i n o s v D g n n M i i * Figures expressed in metric tons except where otherwise indicated. 400 TON DIESEL-ELECTRIC TRUCK AND SHOVEL AT TOQUEPALA MINE, PERU. 3 2 0 2 t r o p e R l a u n n A Projects in Mexico AGUA PRIETA LIME PLANT, SONORA, MEXICO. El Arco Buenavista Zinc El Pilar Angangueo Progress • One of the largest untapped copper • deposits in the world Preparation of studies for port, power supply lines, energy, housing and infrastructure facilities underway • During 2023, the construction of the plant was completed, allowing the start of tests for its commissioning It will begin operating in the first quarter of 2024, following technical adjustments to the concentrator, which will result in a significant increase in production • Progress • Adequate copper recovery was confirmed in the test leach dumps. Work is underway to improve recovery levels and options for optimization are being evaluated • The basic engineering of the project was completed and the company is involved in the development of environmental projects and activities at the site • Basic engineering in progress • MIA update pending Start date of operation Capacity Awaiting approval by the authorities First quarter of 2024 190,000 tons of copper 105,000 ounces of gold 35,000 tons of copper 100,000 tons of zinc Investment Millions of Dollars $9,008 38 Jobs 24,300 Mine lifespan in years More than 40 $439 2,330 15 i i i n o s v D g n n M i i Start date of operation 2027 Capacity 36,000 tons of copper To be determined 10,000 tons of copper 2,000,000 tons of silver Investment Millions of Dollars $310 Jobs 2,030 Mine lifespan in years More than 13 Total Projects Mexico $248 2,830 18 39 US$10.00 billion 3 2 0 2 t r o p e R l a u n n A Projects Michiquillay Peru Tia Maria Peru Aznalcollar Spain COPPER REFINERY IN NACOZARI DE GARCIA, SONORA, MEXICO. Progress In final exploration Start date of operation 2029 Awaiting approval by the authorities 2025 Capacity 269,000 tons of copper eq 120,000 tons of copper Investment Millions of Dollars $3,130 Jobs Mine lifespan in years 6,000 40 $1,514 2,800 21 40 Total projects in Peru Start date of operation • It has received a favorable Environmental Report from the Delegación Territorial de Medio Ambiente (Department of the Environment) • The project is moving forward through a meticulous and demanding environmental process to obtain the Unified Environmental Authorization in the short term and accelerate the start of operations Capacity 125,000 tons of zinc Investment Millions of euros Jobs Mine lifespan in years $450 2,000 20 i i i n o s v D g n n M i i US$4.64 PRESA DE JALES, CANANEA, SONORA, MÉXICO. billion We are working on several projects in Mexico, Peru, the United States and Spain, with an investment of more than US$21.21 billion. 41 3 2 0 2 t r o p e R l a u n n A 42 Explorations Mexico Chalchihuites, Zacatecas • Skarn type deposit. • Drilling programs conducted between 1980 and 2014 identified 12.6 million tonnes of ore with an average silver content of 110 grams per ton, 2.66% zinc, 0.37% lead, and 0.67% copper. Bella Union (La Caridad), Sonora • Breccia-type satellite deposit with copper and molybdenum mineralization located less than one kilometer from the southern limit of the La Caridad pit. • A total of 61 million tons of copper sulfides with a copper ore grade of 0.67% and 69 million tons of leachable ore with 0.20% copper have been identified. Peru Los Chancas, Apurimac • Porphyry copper and molybdenum deposit. 545 million 42 tons of mineralized rock with a mineral content of 0.59% copper, 0.04% molybdenum and 0.039 grams of gold per ton. 181 million tons of leached mineralized rock with 0.357% copper content. i i i n o s v D g n n M i i 43 LA CARIDAD MINE. AT THE END OF ITS USEFUL LIFE, IT WILL BECOME A WATER RESERVOIR AND THE SOIL WILL BE RESTORED TO ITS NATURAL STATE. NACOZARI DE GARCIA, SONORA, MEXICO. Transportation Division BULK TRAIN, LA BARCA, JALISCO, MEXICO. EMPLOYEE AT TORREON TERMINAL, MEXICO. US$3.17 billion in Transportation revenue in 2023 We transport more than 1.9 million carloads per year from different industries to supply the country, equivalent to 6 million trailers. 3 2 0 2 t r o p e R l a u n n A 46 i i n o s v D n o i i t a t r o p s n a r T UNLOADING OF BILEVEL CARS. Transportation Division Thousands of Dollars January - December Variation 2022 2023 Thousands of USD % Vol. Transported (Million Tons/Km) 63,114 65,400 2,286 Loads transported 1,885,478 1,881,818 $ (3,660) 3.6 (0.2) 17.2 17.7 15.5 16.0 $ 2,712,743 $ 3,178,482 $ 465,739 $ 1,387,791 $ 1,632,969 $ 245,178 $ 857,086 $ 989,573 $ 132,487 $ 1,234,111 $ 1,431,761 $ 197,650 45.5% 45.0% $ 481,671 $ 481,809 $ 138 0.0 17.8% 15.2% Revenues Cost of Sales Operating Profit EBITDA EBITDA Margin Net Profit Profit Margin The volume transported increased 3.6% compared to 2022, reaching 65.40 billion net tons-km. Volume growth was led by the automotive segment, with a 19% increase in net tons-km, followed by the intermodal segment, which grew by 8% in net tons-km, and lastly, by the agriculture segment. Ferromex is expected to invest around MXN$3.2 billion in various construction works related to Road Safety Programs, corresponding to government and municipal works for which we will be compensated with additional years of exclusivity. For reasons of national security, President López Obrador decided that the Government should operate the Medias Aguas to Coatzacoalcos section, which Ferrosur held as a concession, and to instead grant this company the right of way over the section. As of December 15, 2023, the government is responsible for providing maintenance and ensuring the safety of trains running on this section of 47 the track, which primarily handles hazardous chemical materials. GMXT pays a right-of-way for each rail car traveling on this part and the Medias Investments $ 376,487 $ 426,655 $ 50,168 13.3 Aguas to Salina Cruz section. In exchange for possession of the railway by the Government, we were compensated with eight more years of concession and exclusivity. INFORME ANUAL 2021 UP Mexicali Pascualitos UP Nogales BNSF / UP El Paso Cd. Juarez BNSF / FWWR Coleman Ft. Stockton San Angelo BNSF / CN / CSX / NS Mobile Benjamin Hill Hermosillo Guaymas Ojinaga Presidio Alpine Chihuahua Piedras Negras BNSP / UP Eagle Pass Sufragio Cd. Frontera Topolobampo Culiacan Torreon Paredón R. Arizpe Mazatlan PACIFIC OCEAN Zacatecas Aguascalientes Tepic Monterrey Cd. Victoria Altamira Tampico Coatzacoalcos-Mobile Railferry GULF OF MEXICO GMXT Network Guadalajara Silao Celaya Penjamo Irapuato Manzanillo Colima Ajuno Veracruz Mexico City Puebla Coatzacoalcos Sanchez Medias Aguas Salina Cruz GMXT Rights of way Connections 3 2 0 2 t r o p e R l a u n n A 48 i i n o s v D n o i i t a t r o p s n a r T CSX / NS Jacksonville Orlando Fort Pierce West Palm Beach Fort Lauderdale Miami Coatzacoalcos-Miami Railferry Project 49 INFORME ANUAL 2021 3 2 0 2 t r o p e R l a u n n A 50 i i n o s v D n o i i t a t r o p s n a r T INTERMODAL TRAIN IN SANTA ANA, JALISCO, MEXICO. Revenues by Segment Tons per Segment Cement 5% Metals 6% Chemicals 8% Energy 8% Industrial 8% Automotive 11% Others 3% Agriculture 27% Intermodal 13% Minerals 11% Cement 6% Metals 8% Chemicals 8% Energy 8% Industrial 5% Automotive 2% Total US$3.17 billion Agriculture 36% Intermodal 12% Minerals 15% 51 Total 65.40 million Tons-Km 3 2 0 2 t r o p e R l a u n n A 52 i i n o s v D n o i i t a t r o p s n a r T TEPALCATES INTERMODAL TERMINAL, MANZANILLO, MEXICO. We reinvested nearly 100% of our total profit. In 2023, it amounted to US$427 million. EBITDA During 2023, EBITDA reached US$1.43 billion, 16% growth compared to the same period of 2022; however, margin reports a decrease of 50 basis points because operating costs were affected by the migration crisis and the closing of borders by the U.S. authorities, as well as higher diesel costs. Investments In 2023, we invested 13% more than in the previous year, mainly in: • Track replacement and rehabilitation • Construction and rehabilitation of tunnels, slopes, yards and terminals • Construction of railroad beltways • Upgrade of telecommunications equipment • Acquisition of haulage equipment • Introduction of new operating technologies Productivity Improvements The operational practices implemented by GMXT during 2023 have generated improvements in our service to the supply chains across North America. During 2023, sound operating results were reported for the following 53 indicators. Train speed improved 2.4% from 37.5 km/hr to 38.4 km/hr to 38.4 km/h, allowing us to provide an efficient and timely service for our clients. Similarly, car dwell times decreased by 3.5% to 24 hours, which allowed for a 1.1% improvement in car velocity delivered. 3 2 0 2 t r o p e R l a u n n A 54 Operating metrics Average train speed (km/hr) Car speed (km/hr) +2% 38.4 37.5 40 35 30 25 20 15 0 +1% 280.3 277.4 300 250 200 150 100 50 0 2022 2023 2022 2023 Car's dwell time (hours) Crews (monthly average) 40 35 30 25 20 15 0 24.9 -4% 24.0 +13% 11,060 9,820 12000 10000 8000 6000 4000 2000 0 2022 2023 2022 2023 55 i i n o s v D n o i i t a t r o p s n a r T CONTAINERS STACKED AT JACKSONVILLE TERMINAL, FLORIDA, USA. Infrastructure Division WIND FARM, JUCHITAN, OAXACA. Dr. Vagón, el Tren de la Salud en Viaducto Ferroviario Manzanillo, Colima, México. WIND FARM EMPLOYEE, JUCHITAN, OAXACA. US$710 million in Infrastructure revenue in 2023 3 2 0 2 t r o p e R l a u n n A 58 i i i n o s v D e r u t c u r t s a r f n I Infrastructure Division Thousands of Dollars Revenues Cost of sales January - December Variation 2022 2023 Thousands of USD % $ 664,107 $ 710,338 $ 46,231 7.0 $ 391,744 $ 342,389 $ (49,355) (12.6) Operating Profit $ 112,155 $ 151,613 $ 39,458 35.2 EBITDA $ 267,823 $ 350,426 $ 82,603 30.8 EBITDA Margin 40.3% 49.3% Net Profit Profit Margin Investments $ 36,322 $ 54,783 $ 18,461 50.8 5.5% 7.7% $ 81,109 $ 316,646* $ 235,537 290 The Infrastructure Division has seven lines of business 1. Oil and gas 2. Energy 3. Construction 4. Highways 5. Engineering 6. Fuels 7. Real estate We invested US$317 million in 2023, mainly in the acquisition of construction 59 equipment for new projects, energy projects and the acquisition of Planigrupo. In 2024, we will invest US$248 million. SALAMANCA-LEON HIGHWAY TOLL BOOTH, GUANAJUATO, MEXICO. * Includes acquisition of Planigrupo (US$248 million). 3 2 0 2 t r o p e R l a u n n A 60 i i i n o s v D e r u t c u r t s a r f n I Revenues 2023 Millions of Dollars Engineering $34.5 Real estate $50.8 Highways $66.6 Construction $77.1 Oil rigs $206.1 Fuels $0.3 Energy $274.1 Total US$710.3 In 2023, the Infrastructure Division achieved record figures, with 7% growth in Net Revenues and a 31% improvement in EBITDA compared to 2022. 61 COMBINED CYCLE PLANT WITH A CAPACITY OF 500 THOUSAND MW, LA CARIDAD, SONORA, MEXICO. 3 2 0 2 t r o p e R l a u n n A Baja California 01 Sonora Baja California Sur PACIFIC OCEAN Chihuahua Nayarit Jalisco Coahuila 03 02 Nuevo Leon Tamaulipas San Luis Potosi 06 05 Guanajuato 07 GULF OF MEXICO Veracruz Hidalgo 14 13 Quintana Roo Michoacan State of Mexico Puebla 12 10 11 Campeche 09 08 Tabasco Infrastructure 62 04 Oaxaca i i i n o s v D e r u t c u r t s a r f n I Energy Fuel storage terminal Highways Construction Oil and gas Real estate Engineering 01 Combined Cycle Plants 08 "Tamaulipas" rig 02 Cadereyta Fuel Terminal 09 "Veracruz" rig 03 Fenicias Wind Farm 10 "Tabasco" rig 63 04 El Retiro Wind Farm 11 "Zacatecas" rig 05 Salamanca-León Highway 12 Offshore drilling rig 06 Silao Bypass 13 "Campeche" rig 07 Land drilling rig 14 "Chihuahua" rig 3 2 0 2 t r o p e R l a u n n A 64 i i i n o s v D e r u t c u r t s a r f n I SELF-ELEVATING DRILLING PLATFORM: 400 FEET OF OPERATING DRAFT CONSTRUCTION OF THE PUERTA MEXICO CHEMICAL TERMINAL FOR AND 30,000 FEET OF DRILLING, VERACRUZ, MEXICO. BRASKEM IDESA, COATZACOALCOS, VERACRUZ, MEXICO. CONSTRUCTION OF SUPERELEVATION DAM 3, STAGE 3, NEW TAILINGS DEPOSIT AND WATER RECOVERY FOR REUTILIZATION, CANANEA, SONORA, MEXICO. URBAN VILLAGE GARZA SADA, MONTERREY, NUEVO LEON, MEXICO. 6565 Fundación Grupo México DR. VAGÓN, THE HEALTH TRAIN TRAVELING THROUGH MANZANILLO, COLIMA, MEXICO. Dr. Vagón, el Tren de la Salud en Viaducto Ferroviario Manzanillo, Colima, México. A PATIENT OF DR. VAGÓN. In addition to fulfilling our sustainable development responsibilities in our operating units and surrounding communities, we created Fundación Grupo México, with a genuine interest in providing people with means and tools to increase their quality of life through healthcare services and sustainability programs. 3 2 0 2 t r o p e R l a u n n A 68 i o c x é M o p u r G n ó c a d n u F i Health Dr. Vagón, the Health Train A train equipped with 18 cars where specialized medical care is provided free of charge to the country's communities that need it the most. Thanks to the infrastructure of Grupo México Transportes, we travel through 23 DR. VAGÓN, THE HEALTH TRAIN ON ITS JOURNEY, CHIHUAHUA, MEXICO. We improve people's quality of life through prevention, timely detection and early treatment of diseases. states of Mexico with a team of 65 health professionals. All our healthcare services and medicines are high quality and free of charge, based We offer free general and specialty medical services such as; dentistry, chiropractic, physical rehabilitation, nutrition and family planning, as well as lab and clinical tests. We have a clinic specializing in women's health and a clinic to provide care to individuals with diabetes. We also have the Operating Room Car—the only one of on three lines of action: • Disease prevention • Timely detection • Early treatment its kind in the world—to perform outpatient surgical procedures. In 2023, Dr. Vagón provided medical services in 39 communities, benefiting the following indigenous populations: 69 • Tarahumaras • Yaquis • Mazahuas 3 2 0 2 t r o p e R l a u n n A 70 i o c x é M o p u r G n ó c a d n u F i Coverage 2023: Patients served 61,279 Lab tests 204,186 Medication donated to patients 69,882 Clinical studies 21,857 Eyeglasses 12,320 Timely detection of comorbidities* 4,000 *Disease complications in patients with diabetes Hearing aids 584 Approximately 65% of the patients seen are women of reproductive age. In 2023, the Dr. Vagón program consolidated one of its most ambitious projects: the Women's Car, which offers gynecological consultation, prenatal check-up, early breast and 71 cervical cancer screening, family planning, and a menopause clinic. Through this program, thousands of women have received specialized, quality medical care, improving their health and wellness. IMAGING SERVICE ON BOARD DR. VAGÓN. 3 2 0 2 t r o p e R l a u n n A 72 Mammograms Vasectomies 4,530 136 IUDs placed Years of couples protection 176 2,240 equivalent to preventing 2,240 pregnancies per year In addition to the healthcare services, Dr. Vagón has a train car adapted as a movie theater. During 2023, it brought the magic of cinema to 39 communities where 116 screenings were offered to 22,526 viewers. We thank our allies i o c x é M o p u r G n ó c a d n u F i 73 PHARMACY STAFF HANDING OUT FREE MEDICATION THROUGH DR. VAGÓN. 3 2 0 2 t r o p e R l a u n n A 74 i o c x é M o p u r G n ó c a d n u F i Escuchar Sin Fronteras (Hearing Without Borders) To date, we have implanted devices in 42 children, equivalent to 84 implants provided. Through this program we assist children from 0 to 24 months of age with hearing loss problems (severe and/or profound hypoacusis) in obtaining a Bilateral Cochlear Implant, as well as the corresponding auditory-verbal therapy and follow-up. Our purpose is to achieve the development of auditory skills and the use of spoken language, so that children can have a better insertion into society. In 2023: Bilateral cochlear implants 40 Donation (pesos) $24 millones Auditory-verbal therapy sessions 1,848 Audiological tests 130 Emotional support sessions for families 152 People impacted, including family members and beneficiaries +300 Applications received for the program 108 75 Three years after this program began, the results of the first children who received their cochlear implants are reflected in an improvement of their hearing and language skills. COCHLEAR IMPLANT ACTIVATION. 3 3 2 2 0 0 2 2 l t a r o u p n e A R e m a u r o n n n A f I l Environment 76 i o c x é M o p u r G n ó c a d n u F i TREE NURSERY, SONORA, MEXICO. Contribute to the restoration of watersheds, natural protected areas, parks and areas of environmental value in Mexico in accordance with the Sustainable Development Goals (SDGs) 2030. Support communities in their adaptation to the effects of climate change, with nature-based solutions, encouraging social engagement and environmental education. Programs • Mexicanos Sembrando (Mexicans Planting) • Restauración de cuencas (Watershed restoration) • Islas Verdes (Green islands) We work hand in hand with local governments, civil society organizations, communities and shared land to restore the country's ecosystems and recover biodiversity. We have 7 nurseries with an annual production of 6.2 million trees. 77 3 2 0 2 t r o p e R l a u n n A FOREST NURSERY, SAN LUIS POTOSI, MEXICO. Beneficiaries Rural communities Municipalities 213 Indigenous groups 9 152 Tarahumaras, Cucapás, Tekos, Kikapúes, Huastecos, Tlahuicas, northern Tepehuanos, Purépechas, Guarijíos. Ejidos 2% 78 CSO's 34% i o c x é M o p u r G n ó c a d n u F i States 5% Municipalities 59% Projects started in 2023 State Projects Chihuahua Restoration of the Rio Fuerte Watershed State of Mexico Reforestation and Restoration of the Cutzamala Watershed Durango Carbon Credits Forest Michoacan Reforestation in and around Monarch Butterfly Protected Natural Area Morelos Reforestation around the Sierra Monte Negro Protected Natural Area Reforestation of Sierra San Miguelito Protected Natural Area and Islas Verdes SLP Total Thousands of trees 638 84 86 267 96 166 1,337 79 17 million trees donated in 24 states across the country since 2011. 3 2 0 2 t r o p e R l a u n n A Nurseries We have seven nurseries in four states of the country: Sonora Chihuahua Zacatecas GULF OF MEXICO San Luis Potosi PACIFIC OCEAN • Annual production: 6.2 million trees • 102 species • 50% of the trees are destined for donation • The remaining 50% are used for reforestation of Grupo Mexico's mining properties 80 81 i o c x é M o p u r G n ó c a d n u F i The nurseries have high-tech irrigation systems that achieve 70% water savings in their operations. NURSERY-GROWER IN NURSERY, SAN LUIS POTOSI, MEXICO. 3 2 0 2 t r o p e R l a u n n A 82 i o c x é M o p u r G n ó c a d n u F i Community Development We are committed to generate well-being and improve the quality of life of the inhabitants of the communities where we operate. To this end, we have implemented a Community Development Model in the Mining Division and in the Infrastructure Division with outreach and participation instruments based on transparent communication with stakeholders. Our management is based on three pillars: • Promoting responsible coexistence • Generate a shared economic development • Promoting human development 83 MIDDLE SCHOOL STUDENTS AT THE LA CARIDAD EDUCATIONAL CENTER, NACOZARI DE GARCÍA, SONORA, MEXICO. HIGH PERFORMANCE SCHOOL. THIS CAMPUS IS HOME TO 300 OUTSTANDING STUDENTS FROM THE MOST VULNERABLE AREAS OF THE REGION. TACNA, PERU. 3 2 0 2 t r o p e R l a u n n A 84 i o c x é M o p u r G n ó c a d n u F i We have implemented 3 thousand social programs benefiting close to 300 thousand individuals. Results of our commitments • We have 33 community centers in Mexico, Peru and the United States. • In the last year, we destined US$40 million to tax projects in Peru, benefiting close to 10,000 students with the construction of five educational centers. • We invested US$15 million in community development programs and productive projects. • We provided education to close to 4 thousand children and young people, who are the children of our employees and neighboring communities, in Mexico and Peru, through 11 educational centers from preschool to high school. 85 MEMBER OF THE GRUPO MÉXICO BASEBALL ACADEMY IN ESQUEDA, SONORA. 3 2 0 2 t r o p e R l a u n n A 86 We have 12 orchestral nuclei in Mexico and Peru, where 1,700 students between the ages of five and 22 devote 15 hours a week to music lessons. 90% of these students, after one year of belonging to the project show improvements in their school performance. • We have three baseball academies in the neighboring communities of our operations in the state of Sonora, Mexico, benefiting more than 400 students. • Our swim team is made up of 25 young people from Cananea, Sonora, Mexico, who are part of the Asociación Sonorense de Natación (Sonora Swimming Association). • In the last five years, the Taller Ambulante de Cine Documental (Traveling Documentary Film Workshop) project has benefited 800 students from seven communities in Mexico, who have generated close to 100 original short films, 19 of which have been recognized at festivals. • Eight thousand volunteers have supported us in educational, artistic, sports and environmental activities for the benefit of their own communities. i o c x é M o p u r G n ó c a d n u F i CHRISTMAS CONCERT WITH THE GRUPO MÉXICO ORCHESTRAS AND CHOIRS, TOGETHER WITH THE MINERIA SYMPHONY ORCHESTRA. 8787 MEMBER OF THE CHILDREN’S CHOIR OF SANTA BARBARA, CHIHUAHUA, MEXICO. 3 2 0 2 t r o p e R l a u n n A 88 i o c x é M o p u r G n ó c a d n u F i Red de Asociaciones y Fundaciones Empresariales (Network of Business Associations and Foundations) • The Network of Business Associations and Foundations is a leading social platform in Mexico and Latin America. • It provides free training to organizations and helps social enterprises and community groups. These actions promoted the sustainability and transparency of the participating organizations. • La Red (The Network) celebrated its tenth anniversary with the Expo Red de Asociaciones (Association Network Expo), which was the first hybrid edition and was attended by 5,048 people from 17 countries. 89 PANEL ON GENERATIONAL LEADERSHIP AT EXPO RED 2024. 3 2 0 2 t r o p e R l a u n n A 90 o i r o t c e r i D Grupo México Board of Directors Management Team Germán Larrea Chairman Patrimonial Board Member Oscar González Rocha Patrimonial Board Member Alfredo Casar Pérez Patrimonial Board Member Luis Castelazo Morales Patrimonial Board Member Fernando López-Guerra Larrea Patrimonial Board Member Claudio X. González Laporte Independent Board Member Emilio Carrillo Gamboa Independent Board Member Fernando Ruiz Sahagún Independent Board Member Rolando Vega Saénz Independent Board Member Antonio del Valle Ruiz Independent Board Member Carlos Prieto Sierra Independent Board Member Carlos Rojas Mota Velasco Independent Board Member Lillie Hernández Minor Secretary Germán Larrea CEO and Chairman of the Board Fernando López-Guerra Larrea CEO, Trasportation Division Oscar González Rocha Executive President of Mining Division Francisco Zinser González CEO, Infrastructure Division Leonardo Contreras Lerdo De Tejada CEO, Mining Division Lourdes Aranda Bezaury Chief Communications Officer Alfredo Casar Pérez Executive President of Transportation Division Marlene Finny De La Torre Chief of Financial and Administration Officer 91
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