Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — ESG Presentation (2020)
42 slides from Grupo Rotoplas Sab De Cv's sustainability presentation, 2020
Slide 1: Grupo Rotoplas Corporate Presentation | ESG
Grupo Rotoplas S.A.B. Corporate Presentation | ESG ~ Second Quarter 2020
Slide 2: Forward-looking statements
= soplas:. Forward-looking statements /potoplas The contents of this presentation, including text, graphics, images and other materials (“Content”), here contained, is for general information purposes only. While we endeavor to keep the information up to date and correct, Grupo Rotoplas, S.A.B. de C
Slide 3: Investment Considerations
Investment Considerations 6) | Water ? About Rotoplas 3 Sustainability Model & Climate Change Strategy 7A) Social Corporate Governance Innovation & Sustainable Financing Pacts & Certifications Strong Financials r3¥e\ Dow Jones Sustainability Indices i al In Collaboration with RobecoSAM «@ CO NJ OD U
Slide 4: Water
1 Water
Slide 5: Water Supply
Water Supply A otoplas: Population Growth Imbalance in water distribution 2020 2050 Rural 3.0B 3.0B ] O countries control Total 7.0B 10.0B 60% of the global fresh water supply nna ARPT for non-agricultural uses increases than the population Across the world, water supply & sewer systems are Sn] 60-8
Slide 6: Water Challenges for Humanity
Water Challenges for Humanity people worldwide live without access to adequate sanitation services of the world’s population live in areas that have water scarcity at least once a month Market Size & Dynamics billion market Billion market in Market reach for Growing at a Latam and North America CAGR
Slide 7: Case Study — Mexico City
Case Study — Mexico City ior “Nowadays, 40% of inhabitants have problems W regarding water access and quality” Water service reliability “Sh Poor quality i.e. Nowadays in Tlalpan neighborhood the local government spends US$7M annually in water trucks CDMxX International Airport * The city's water sy
Slide 8: Water situation in Mexico
Water situation in Mexico | 8 Apotopls- Country Mexico Guatemala Peru USA El Salvador Argentina Costa Rica Brazil Honduras Nicaragua Source: World Resources Institute (WRI) Ranking Risk 24 3.86 2.36 2.05 185 1.66 131 0,92 0.78 0.27 0.21 5049 49 48 48 6) General water risk! iin nie the percenta: of c
Slide 9: About Rotoplas
About Rotoplas
Slide 10: Rotoplas
Rotoplas 6 Mission | Purpose For people to have more and better water Vision To offer non-centralized and sustainable water solutions, with relevant benefits to our customers, within the Rotoplas Way. Social and Environmental Responsibility Humility Collaboration ( Service-oriented Integrity attitud
Slide 11: ESG focus
sy ESG focus /potopls:. ARQ 4 9,000 hrs! 53% independent zy training collaborators on human Board Members ER? rights, processes, health and safety, among other topics Audit, Compensation and Corporate -& Practices Committees chaired by | independent Board Members +5700! GOVERNANC & plumbers trained
Slide 12: ESG Key Performance Indicators
ESG Key Performance Indicators ao wn) wv VW) Emissions Intensity Scope 1* 2018 0.42 2017 037 Liters of purified water for human consumption 2018 77,500,307 2017 47,921710 © any. Number of employees 2018 2,901 2017 2,851 “per ton of resin processed Emissions Intensity Scope 2* 2018 pO 0.31 2017 pO 0.
Slide 13: Key metrics 2014 — LTM June 2020
Key metrics 2014 — LTM June 2020 Frotopls:. $6,552 $7,868 /\ 40% 4% A-36% Government sales | - (O) 37,500+ A 37,S00+ Treatment & purification units $260 LY $1480 A72% EBITDA cP, 2,703 Gy 3,246 A543 Employees 13% NS 4% A9% Client concentration 13.1% 18.8% AS70pb EBITDA Margin | 23,000+ @) 27,500+ A4,
Slide 14: Sustainability Model & Climate Change Strategy
Sustainability Model & Climate Change Strategy
Slide 15: Sustainability Model
Sustainability Model ore our S ability B>)) 6) sf Our sustainability model is triggered by innovation. We recognize our responsibility in a series of economic, social, and environmental impacts, among which are the provision of water and sanitation, strengthening the water culture in society, and co
Slide 16: Sustainability Organizational Structure
y Sustainability Organizational Structure potoplas.. It has a multidisciplinary structure and reports to the Board of Dir through the Corp Practices Committee Human Capital Investor Government Syieea Quelisy Relations Relations Siieiesy Institutional Purchasing Rdettons Department Marketing Legal In
Slide 17: Climate Change Strategy
Climate Change Strategy Seeks to mitigate risks and capitalize on opportunities raised by climate change for Rotoplas and its stakeholders q ® End user Rotoplas measures its GHG emissions scope 1,2,3 as well as its water footprint woe nen eee 4 “SX Reducing Greenhouse Gas f S Emissions (GHG) | Finan
Slide 18: Climate Change Strategy - relevant issues by stakeholder
Climate Change (CC) Strategy - relevant issues by stakeholder /potopl?s:. Stakeholder Relevant climate topics Rotoplas Perspective * Concern for environmental impact of products +Rotoplas superior to competition in climate End User and purchase decision leadership +*Safety in the face of climate cha
Slide 19: Climate Change Strategy
Climate Change Strategy / Y + Renewable energy supply - solar panels - Main initiatives| energy & materials circularity oS Ba Incorporation of recycled resins (own and third party) y= +--+ Development of blow-molding process for the manufacture of water tanks, more efficient in terms of energy and w
Slide 20: Water footprint and carbon footprint of Rotoplas products
Water footprint! and carbon footprint? of Rotoplas products CO2 equivalences (¢0;) In order to contribute to the reduction, mitigation and elimination of impacts related to climate change, we make : : ) During its use-phase life, a 750 L Water Tank emits CO, available to our stakeholders environment
Slide 21: Social
“Social
Slide 22: Social | Employees
Apotop Social | Employees © Number of employees Percentage of women Salary ratio (woman/man) 0) TS 2: SS -... cZ Executives 0.93 2018 2,901 : : ¢ 2018 23.5% Middle management 0.97 2017 2,851 2017 22.2% Individual contributors 116 Operating staff 1.07 28% women report in first and second line to CEO
Slide 23: Social | suppliers and communities
Social | suppliers and communities Suppliers We seek to develop suppliers who are sensitive and proactive in environmental and social issues. ‘The selection and relationship with suppliers seeks to develop products of the highest quality, as well as working together for innovation in raw materials Q
Slide 24: Corporate Governance
Corporate Governance
Slide 25: Best Corporate Governance Practices
Best Corporate Governance Practices /\ Learn more about Y of Directors Board of Directors Our board of directors: Audit Compensation Committee Ck Committee Transparency = > 53% Independent Members =J Diversity == > 5 international Board Members c 1 5@x Innovation = > Represented by 4 different gener
Slide 26: Ethics | Policies
Ethics | Policies /potop! 6) To ensure the protection of all members of our diverse stakeholders we have designed policies that guide the daily operation of Rotoplas We invite you to read them by clicking on each one: © Hygiene, Workplace Security and Environment Climate Change Human Rights Sustaina
Slide 27: Risk Management
Risk Management ete risk T RISK MANAGEMENT I Economie Bi Social Bi Environmental * Risk map - annually updated * Establishment and prioritization of prevention and mitigation measures * Monitoring through the internal control system Increase in raw material prices ‘Changes in consumers’ income and p
Slide 28: Innovation & Sustainable Financing
Innovation & Sustainable Financing
Slide 29: Collaborative innovation with purpose
Collaborative innovation with purpose / Visit innwai, our 1) r innovation hub 1 Development of blow-molding process for manufacturing water tanks, more efficient in energy and less water is required. 2 Green project, use of recycled resins and incorporation of circular economy in processes as well +
Slide 30: Sustainable Bond | AGUA 17-2X
Sustainable Bond | AGUA 17-2X 1 = . ! The ' “ ‘Oo Green Bond '! / Yo Principles \ { 1 I Ar Social Bond | 1 Principles | \ “ 2. Eligible projects within 4 categories contributing to SDG 6 and SDG 9 1 (@) SUSTAINABLE “ 1 DEVELOPMENT 04, ! Ol. 02. 03. . i 6 Set Drinking Water storage Sanitation Water a
Slide 31: Sustainable bond impacts AGUA 17-2X Key Indicators
= jas... Sustainable bond impacts AGUA 17-2X ‘roto / Y CATEGORY 1 Key Indicato & Provide access to clean water for individuals in areas of scarcity or where tap water is not safe to drink, for example, through drinking water fountains, water filters and purifiers. toes - 130,901,747 liters 1.1 Purif
Slide 32: Pacts & Certifications
Pacts @ Certifications
Slide 33: Our contribution to the SDGs | UN 2030 Agenda
Our contribution to the SDGs | UN 2030 Agenda / Read more about our Y contribution to the SDGs First Scope ‘CLEAN WATER a . An + . ANDSANTATION : To guarantee the availability of quality water, its sustainable management and sanitation for all INDUSTRY, INNOVATION wae we . . . . 9 Nonrasnuctu ¥; § =
Slide 34: Certifications | quality, environmental, health and safety
Certifications | quality, environmental, health and safety O Certifications Dimension Norm Plants that comply d plants Quality ISO 9001:2015 All 15 Environmental ISO 14001:2015 All 4 Health & Safety OHSAS 18001:2007 All 4 @ sVe Sustatnblity Indi ¢ ! Awards, adhesions 1 ity Indices ESR eee ee 7 ! wee
Slide 35: Strong Financials
STRONG FINANCIALS With a sustainable focus
Slide 36: ROIC vs Cost of Capital
ROIC vs Cost of Capital 23.3% 1% 73% 73% SEPT eee nevowoOtFeeSREww~aaanaangodo eve0c070c0cecvn0c0c00gc00000000089 FrFnnTrantrnnm TAM TTN ATTN MT SE ROIC: LTM NOPAT / Average invested Capital t, t potop!s:
Slide 37: Flow transformation program CEO quote
“.throughout this transformation effort, Rotoplas should achieve a ROIC greater than WACC in less than 18 months” Carlos Rojas | CEO Flow’s program kick off August 2019
Slide 38: Flow | Transformation Program
Flow | Transformation Program A. Enhance performance of current portfolio * Revenue levers 1) Price & volume optimization * Cost levers 1) Procurement of materials 2) Manufacturing efficiency 3) Distribution costs optimization * Working capital levers 1) Inventory levels optimization 2) Customizatio
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Slide 40: Revenue and EBITDA CAGR
4.4x CAGR: 11.2% v 7,859 7,790 7.868 6,551 6.660 5,399 3,700 6 369 4,680 3,049 2415 2,859 2,161 “ 1769 1.980 2. [ l | 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 LIM EBITDA 5.6x CAGR: 13.1% 9.7% We : 15.1% 989 9 1 Lo 1 15.5% 100% 9 7386 ae 605 771 736 388 309 2006 2007 2008
Slide 41: Sound Financials
/potopl2s:. Sound Financials MXN mm Debt amortization calendar Prior to second reopening Strong Balance Sheet to support growth 80% June 2020 20% $2,400 $600 Cash and Equivalents $3,193 — IN || Other Assets $9,360 2019 2020 2027 S Debt $4,075 . Other Liabilities $1,991 After second reopening ‘ $1, s
Slide 42: Thank you!
Thank you! 5 X INVESTOR RELATIONS \ Mariana Fernandez ~ mfernandez@rotoplas.com ~ 482 (88) 8201-5000 ext. 50163 & q
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