Orbia Advance Corp. Sab De Cv · BMV:ORBIA
Orbia Advance Corp. Sab De Cv — Q2 2020 Earnings Presentation
20 slides from Orbia Advance Corp. Sab De Cv's earnings presentation, Jul 29, 2020
Slide 1: Q2 2020 Earnings Call
Q2 2020 Earnings Call July 29, 2020
Slide 2: Safe Harbor
Safe Harbor In addition to historical information, this presentation contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally
Slide 3: Q2 2020 Highlights
Q2 2020 Highlights Daniel Martínez-Valle, CEO
Slide 4: Key Messages
Key Messages Strong financial position despite temporary economic 01 challenges with focus on organic growth, margin expansion, cash flow generation and ROIC. Aggressively managing costs with relentless focus on 02 operational excellence while continuing to make seed- planting investments. Significa
Slide 5: Q2 Financial Highlights
Q2 Financial Highlights Revenue EBITDA EBITDA Margin Cash Generation Overall, our results were Consolidated reported EBITDA margin of Working capital better than our initial EBITDA totaled contributed to a strong expectations cash generation of $1.4 Billion $263 Million 18.7% $100 Million down 23%,
Slide 6: COVID-19 Business Update
COVID-19 Business Update Highlights Team Management Status of Operations Community Support • We are remaining strong, • Restricted non-essential travel • Supported UNICEF by providing • Nearly 100% of our collaborating, helping for health and safety manufacturing plants, facilities hand sanitation e
Slide 7: Execution Against Play-to-Win Strategy
Execution Against Play-to-Win Strategy Purpose-Led Organization Customer-Centric Mindset • Feeding more people using less water, land and energy • Enhancing the end user experience with industry leading innovation and • Building future cities that are smart, highest quality products sustainable and
Slide 8: Q2 2020 Financial Results
Q2 2020 Financial Results Edgardo Carlos, CFO
Slide 9: Q2 Consolidated Financial Performance
Q2 Consolidated Financial Performance Net Sales ($M) Operating Income ($M) -23% -47% $1,839 $237 $1,412 Sales by Region Q2 2020 $126 15% 2Q19 2Q20 2Q19 2Q20 Sales decreased primarily due to lower sales in the Vestolit, Wavin and Netafim businesses, offset 37% by resiliency of our diverse businesses
Slide 10: Q2 Business Group Financial Results ($M)
Q2 Business Group Financial Results ($M) Netafim Dura-Line Wavin Koura Vestolit Net Sales Net Sales Net Sales Net Sales Net Sales -16% -7% -31% -18% -27% $295 $596 $588 $247 $208 $193 $204 $427 $409 $167 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 EBITDA & Margin EBITDA & Margin EBITDA & Margi
Slide 11: Cost Management & Cash Preservation
Cost Management & Cash Preservation • Reassessed CAPEX and applied zero-based budgeting in key areas • Renegotiated contracts for raw materials, freights and other relevant supplies • Focus on targeted and strategic capital investments • Eliminated non-essential travel and further reduced discretion
Slide 12: Strong Balance Sheet & Ample Liquidity
Strong Balance Sheet & Ample Liquidity Balance Sheet ($M) Debt Profile ($M) Cash Generation ($M) Cash / Cash Equivalents 1,238 Gross Debt 4,208 $288 Accounts Receivable 1,130 Less Cash 1,238 Inventory 773 $216 $173 Total Assets 10,421 Net Debt 2,969 Accounts Payable 1,197 $100 Total Debt 4,208 Gross
Slide 13: Q2 2020 Closing Remarks
Q2 2020 Closing Remarks Daniel Martínez-Valle, CEO
Slide 14: Global Business Trends and Expectations
Global Business Trends and Expectations Europe is starting to see U.S. remains steady to date some signs of a rebound • Assuming economic forecasts do not worsen, we expect earnings in Q3 to trend positively compared to Q2 • Anticipate a moderating performance in Q4 due to seasonality and other fact
Slide 15: Key Takeaways
Key Takeaways Committed to delivering on our promise to Advance Life Around the World and deliver value for all our stakeholders. Strong balance sheet with ample liquidity to withstand the impact from COVID-19; well-positioned for growth when economic recovery begins. A changed company with a new, d
Slide 16: Appendix
Appendix orbia O
Slide 17: P&L
P&L Second Quarter January - June USD in millions Income Statement 2020 2019 % 2020 2019 % Net sales 1,412 1,839 -23% 3,039 3,605 -16% Cost of sales 1,043 1,324 -21% 2,221 2,621 -15% Gross profit 369 514 -28% 818 983 -17% Operating expenses 243 278 -13% 520 560 -7% Operating income (loss) 126 237 -4
Slide 18: Balance Sheet
Balance Sheet USD in millions Balance sheet Jun 2020 Dec 2019 Total assets 10,421 10,057 Current assets 3,360 2,852 Cash and temporary investments 1,238 586 Receivables 1,130 1,158 Inventories 773 834 Others current assets 219 274 Non current assets 7,061 7,205 Property, plant and equipment, Net 3,5
Slide 19: Cash Flow Statement
Cash Flow Statement Second Quarter January - June mm US$ 2020 2019 %Var. 2020 2019 % Var. EBITDA 263 372 -29% 573 690 -17% Taxes paid, net (78) (52) 50% (108) (106) 2% Net interest / Bank commissions (15) (36) -58% (104) (125) -17% Change in trade working capital (0) (64) -100% 7 (279) N/A Others (O
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Orbia Advance Corporation, S.A.B. de C.V. — Q2 2020 Earnings Presentation on 6ix