Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q1 2024 Earnings Presentation
31 slides from Grupo Rotoplas Sab De Cv's earnings presentation, May 2024
Slide 1: 1Q24 Corporate Presentation
Slide 2: Our Vision, Mission and Purpose
Our Vision Offer non-centralized Our Mission and sustainable water solutions, with relevant benefits for more and better our customers, water within the Rotoplas Way Our Purpose We exist to transform everyone’s quality of life For people to have by ensuring water is used to its fullest extent We are
Slide 3: Investment considerations
Investment QC] Our water management solutions considerations @) y) Clear structure for a sustainable future @) 3 Solid Financials O4 Water, a resource at risk
Slide 4: Our water management solutions
Froroplas = Our water OT management solutions
Slide 5: Key Messages
Presentacién Corporativa Key.Messages ( a Sustainable growth plan: double sales in 5 years Transformation story: Rotoplas significantly increased its ROIC in 2 years XY SI Upside potential Analyst Coverage GBM Buy Signum / Punto Buy Miranda Research Buy BTG Pactual Neutral Apalache Buy Consensus $50
Slide 6: Rotoplas' leadership in the industry
Presentacién Corporativa ing Rotoplas' leadership in.tt ind Leading products and services in a rapidly growing and high-impact industry. Storage Waterflow Improvement Treatment and recycling Financial Guidance 2025 2x sales (vs. 2020) EBITDA Margin 220% Net Debt / EBITDA $2.0x Double digit ROIC > WA
Slide 7: A story motivated by water
Presentacién Corporativa A story.motivated by water + 7 International expansion Rotoplas is born The first polyethylene - - Rotoplas starts . in Mexico water tank is begins with the Plant operating in Argentina 14 countries launched C5RSroptas. 18 plants +3,400 employees /potoplas-. Acquisition of T
Slide 8: Our Products
— . . ; rotopl?s: Our Products|. Solutions for adapting to climate change WATERFLOW IMPROVEMENT 4 |_| Instalamos c— BS confianza
Slide 9: Our Services
potop!as: Our Services |. Climate change mitigation solutions
Slide 10: Products and services by market
Presentacién Corporativa @ Mature Market @ Expanding Market Emerging Market Explore PRODUCTS | a Improvement =p Dp SERVICES — Purification BU... ~bebbia seein Treatment & recycling ev ae e Central America includes Guatemala, El Salvador, Costa Rica, Honduras y Nicaragua. is) Aroroplas: se We provide
Slide 11: Growth guidance CAGR 23-25
≥ Growth CAGR 23-25 Revenue EBITDA ≤ PRODUCTS 15 – 17% 20 – 22% Mexico 15 – 17% 15 - 17% Argentina 12 - 14% 12 - 14% USA1 24 – 26% margin > 5% Other 16 - 18% 16 – 19% • SERVICES2 82 – 84%~ Margin > 0% • TOTAL 20 – 22% 26 - 28% • •
Slide 12: New Businesses Growth
~New.Businesses Growth... | | Total Addressable Market | | Served Available Market || Key Initiatives for 2024 bebbia, - 3 M households (82C) -1M institutional clients (B28) - 500 M USD annual recurring revenues - Renewing purifiers portfolio - Training technicians for enhanced service quality - Imp
Slide 13: 360º Value generation
Presentacién Corporativa 0 360° stakeholder ; Sere impact : = ail — poaitabilty and collection Y ww - it STAKEHOLDER 1) 360° MPacy /, ——> Employees 5 Clients and users —> Suppliers —> Investors and financial community —> Authorities — Academia Corporate governance and ethics Quality of life Pe of us
Slide 14: Results & Goals ESG
Presentacién Corporativa Results & Goals|.ESG___ @ lroSer Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) @lanert CO2 Intensity - Scope 1 and Scope 2 - per ton of processed resin m3 of purified water using our solutions Olerple People impacted with access to sanitation (cumul
Slide 15: Clear structure for a sustainable future
Clear structure fora sustainable future Froroplas..
Slide 16: • • ° • • • • ∼ • • • • • •
• • ° • • • • ∼ • • • • • • • • • • • • • • • • •
Slide 17: Our board of directors
in Corporativa Our board of directors Transparency 5 independent members 7 internationalr ers Innovation presented by 3 different generations Equality Gender equality on the Board, 14% Experience nbined experie 4 Ordinary Meetings annually Board of Directors 7/14 Compensation Committee 3/3 Corporate
Slide 18: Resource allocation
Presentacién Corporativa Resource allocation for: Oe way Xo) & 3 © Extra L=§ Organic Inorganic growth Share Dividend Debt growth Coherence matrix approach buybacks Payment Payment Process: > Project Evaluation IRR > WACC Validation and Quarterly status proposal approval update Supported by a Capital
Slide 19: Solid Financials
Froroplas = O ‘3 i
Slide 20: Business Model Resilience
Business Model Resilience MXN mm CAGR: 11.3% 6.8x | 12,774 12,14612.088 10,315 8,644 7.8591,790 6551 6,660 5,399 8,700 5 353 4,680 93,048 1-769 1.980 2.16) 2.415 2.65 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 LTM CAGR: 12.2% 8.0x y 2,131 2.19 1,982 1,7
Slide 21: 1Q24 Results
/potoplas:. 1Q24 Results MXN mm By Country By Solution Sales EBITDA CAPEX Sales EBITDA | Ss a = Mexico \r] ‘a @ Products @ Argentina m Services $2,667 $98 = USA $2,667 = Other 1Q24 1Q23 A %/bps Net sales 2.867 2s (3%) Cash Conversion Cycle Cost of Sales 1,316 1,435 (8%) 30 days z [1382 [sn | 3% | z
Slide 22: 1Q24 Results: debt and balance sheet
Presentacién Corporativa 1Q24Results__ MXN mm Debt Maturity Profile $4,000 $124 2024 2027 Interest coverage* 8.8x 8.5x 92x T : | 2020 2021 2022 2023 2024 “Considers net interest paid = interest expense — interest income “Calculation of interest coverage: LTM EBITDA/ LTM Net interest expense Strong B
Slide 23: ROIC: Sustainable value creation
Presentacién Corporativa =ROIC| Sustainable value.creation... Spread ROIC-WACC in line with guidance ROIC = WACC + 200bps BEBLSLOLE EEE SMOMAAMAQASSSSASANSHASNSRSRS LSRAPSRSFSaRgsoeeeegggsgagersgegggsgges ROIC: NOPAT LTM/ Invested Capital LTM, monthly average Invested Capital: Total Assets - Cash an
Slide 24: Peer comparison
5Y 5Y EBITDA Company Revenue ROIC CAGR EV/EBITDA CAGR FLUIDRA SA 25.0% 37.9% 12.9x 4.7% RELIANCE WORLDWI 15.8% 21.4% 9.5x 8.8% GRUPO ROTOPLAS 13.9% 15.3% 7.7x 17.7% FRANKLIN ELEC CO 12.7% 17.4% 13.4x 15.8% TORO CO 12.5% 11.0% 15.4x 15.8% VALMONT INDS 9.6% 9.6% 12.8x 7.4% COWAY CO LTD 8.9% 10.4% 3.8x
Slide 25: 2024 Guidance
* : EB soplas:. top!as 2024 Guidance /RotoP Sales % EBITDA Margin 18% - 19% Net Debt / EBITDA < 2.0x EXe}(em WACC + 200 pb
Slide 26: Water, a resource at risk
Water a resource at risk
Slide 27: What you need to know
Presentacién Corporativa /potoplas-. What you need to know: 5% of our planet is covered by water, but less than 1% is usable. Water demand has increased by 40% over the last 40 years and is expected to rise an additional 25% by 2050, while supply has more than halved since 1970. We could exhaust our
Slide 28: General water risk America
General water risk America1 General water risk1 Country Ranking Risk Mexico 24 3.86 Guatemala 57 2.36 Peru 66 2.05 USA 71 1.85 El Salvador 78 1.66 Argentina 92 1.31 Costa Rica 107 0.92 Brazil 112 0.78 Honduras 133 0.27 Nicaragua 137 0.21 Global estimated, bn people2 0-1 low 1-2 low-medium 2-3 medium
Slide 29: Source: Institute of Public Utilities/Michigan State University
Source: Institute of Public Utilities/Michigan State University
Slide 30: Why Mexico? Nearshoring opportunities
Presentacién Corporativa Froroplas- Companies are beginning to move their production chain to Mexico, and this represents a great opportunity for our market. Why Mexico? | | Opportunities for Rotoplas * Location We have 14 manufacturing plants for products in Mexico and a robust service platform tha
Slide 31: Thank you! Investor Relations contacts
Presentacién Corporativa Thank you! = INVESTOR RELATIONS CONTACTS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com Institutional e-mail agua@rotoplas.com https://rotoplas.com/investors/
Grupo Rotoplas S.A.B. de C.V. — Q1 2024 Earnings Presentation on 6ix