Alpek, S.a.b. De C.v. Class A · BMV:ALPEK/A

Alpek, S.a.b. De C.v. Class A — Alpek Sab De Cv Ord — Q1 2020 Earnings Presentation

14 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Apr 16, 2020

  1. Slide 1: Earnings Presentation 1st Quarter 2020

    Earnings Presentation 1st Quarter 2020

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains, or may be deemed to contain, “forward-looking statements”. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Alpek

  3. Slide 3: 1Q20 Highlights

    1Q20 Highlights Achieved better-than-expected results vs. Guidance amid volatile environment COVID-19 has not impacted our operations as our products are considered essential for Food / Beverage / CPG packaging, as well as medical supplies Reported EBITDA of U.S. $111 million / U.S. $127 million Com

  4. Slide 4: COVID-19

    COVID-19 Alpek posted better-than-expected 1Q results amid volatile environment Industry Impact 1Q20 Effects on Alpek Company Reaction • Lower crude oil demand in Asia =• No adverse effect to Alpek’s • Increased hygiene measures & resulted in decreases to Crude Oil business continuity from COVID-19

  5. Slide 5: Relevant References: Crude Oil

    Relevant References: Crude Oil Price reduction from demand reduction & no agreement to reduce output in 1Q20 US$/Bbl Brent Crude Oil Price 120 100 Avg. 99 80 71 60 Guidance 64 59 53 54 44 40 20 2014 2015 2016 2017 2018 2019 2020 5 Source: Bloomberg

  6. Slide 6: Relevant References: Paraxylene

    Relevant References: Paraxylene Px prices also fell in 1Q20 following their correlation with Crude Oil US$/Ton NA Px Contract Price 2,000 1,708 1,635 1,641 1,500 US$165/ton 1,382 decrease from 1,258 1,282 Dec.’19 to Mar.’20 1,165 1,056 1,100 1,077 992 989 977 955 1,000 924 924 937 876 876 500 0 2011

  7. Slide 7: Relevant References: Integrated PET Margins

    Relevant References: Integrated PET Margins Margins have already risen above Guidance levels in low-demand quarter US$/Ton Asian Margins (Px / MEG to PET) 600 China 500 478 393 400 377 370 342 333 324 304 300 193 277 276 284 346 275 255 263 248 240 214 Guidance 227 223 242 227 255 238 215 214 164 20

  8. Slide 8: Relevant References: Propylene & Polypropylene

    Relevant References: Propylene & Polypropylene Decrease in both PGP contract prices & industry PP margins in 1Q20 NA Propylene Contract Price (PGP) NA Polypropylene Margin (PP to PGP) cpp cpp 80 76 28 27 71 26 70 69 24 24 22 22 22 Alpek able to 60 22 21 maintain 60 20 20 margins in 1Q 54 19 50 18 45

  9. Slide 9: EBITDA Comparison

    EBITDA Comparison Lower EBITDA QoQ from lower contract margins & lack of Cogen operations Alpek EBITDA (US$M) Comparable EBITDA 356 Comparable EBITDA exc. RMCF1 CoGen 188 231 Sale 217 213 173 167 189 147 172 148 127 194 161 167 140 Reported 111 EBITDA 1Q19 2Q19 3Q19 4Q19 1Q20 9 (1) Raw Material Carr

  10. Slide 10: EBITDA Breakdown

    EBITDA Breakdown Both Polyester and P&C exceeded Comparable 1Q EBITDA Guidance (exc. RMCF) Alpek 1Q20 EBITDA vs. Guidance (US$M) +26% 147 1 10 20 127 20 116 50 17 Others 111 50 P&C 40 49 94 Polyester 74 74 58 1Q20G Polyester P&C Others 1Q20 Comparable RMCF1 1Q20 Comparable Inventory 1Q20 Reported (w

  11. Slide 11: Raw Material Carry Forward Effect (RMCF) Breakdown

    Raw Material Carry Forward Effect (RMCF1) Breakdown Smaller YoY & QoQ difference in EBITDA when excluding extraordinary effects 2020 2019 Delta US$M 1T 1T 4T 1T 4T Reported EBITDA 111 140 167 (29) (57) Inventory Adjustment (17) (19) (6) 2 (11) Others - 11 1 (11) (1) Comparable EBITDA 127 148 172 (20

  12. Slide 12: Leverage

    Leverage Alpek maintains low leverage despite payment of dividend from Cogen sale Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times) 2,200 1,022 2.4 2,084 2,036 2.2 944 2.2 864 850 821 1.7 1,436 1.6 1,330 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 12

  13. Slide 13: For Additional Information

    For Additional Information Email: IR@alpek.com / Phone: +52 (818) 748-1146 Alejandro • 9 Years at Alfa/Alpek Elizondo • Previously held roles as Director of Logistics & Procurement at Indelpro, Director of Energy Markets at IRO Alfa, and Project Leader at The Boston Consulting Group • BS in Industri

  14. Slide 14: Earnings Presentation 1st Quarter 2020

    Earnings Presentation 1st Quarter 2020

Alpek Sab De Cv Ord — Q1 2020 Earnings Presentation on 6ix