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 — Q2 2023 Earnings Presentation
19 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Jul 16, 2023
Slide 1: Second Quarter 2023 Earnings Webcast
SECOND QUARTER 2023 EARNINGS WEBCAST
Slide 2: Today's Speakers
TODAY’S SPEAKERS JORGE YOUNG JOSÉ CARLOS PONS ANTÓN FERNÁNDEZ CEO CFO IRO 3 3
Slide 3: Agenda for Today's Webcast
AGENDA FOR TODAY’S WEBCAST 1. Overview & Relevant Events 2. Financial Performance 3. Revised Guidance 4. Q&A 4
Slide 4: Overview
OVERVIEW
Slide 5: Integrated PET Reference Margins
INTEGRATED PET REFERENCE MARGINS Asian reference margins averaged 410 -3% US$332 343 332 per ton 317 Chinese reference margins averaged 223 225 US$225 per ton 2Q22 1Q23 2Q23 Asia China Px / MEG to PET (US$/Ton) 6 6
Slide 6: NA Polypropylene Reference Margins
NA POLYPROPYLENE REFERENCE MARGINS 39 17 cents per pound ~ 17 17 New supply has ramped up and margins have stabilized 2Q22 1Q23 2Q23 PP to PGP (cpp) 7 7
Slide 7: NA EPS Reference Margins
NA EPS REFERENCE MARGINS -10% 49 44 44 cents 35 per pound Due primarily to lower ocean freight costs leading to more competitive imports 2Q22 1Q23 2Q23 EPS to Styrene (cpp) 8 8
Slide 8: Ocean Freight Prices
OCEAN FREIGHT PRICES East Coast 600 West Coast South America 500 400 300 200 100 0 2019 2020 2021 1Q 2Q 3Q 4Q 1Q 2Q 2022 2023 Asia – Americas Spot Ocean Freight Rate (US$/Ton) Source: SCFI, prices based on 20-foot containers with 24-ton capacity from Shanghai to U.S. East Coast, West Coast & South A
Slide 9: Sustainability-Linked Loan US$200 M
FIRST ESG TRANSACTION SUSTAINABILITY–LINKED LOAN US$200 M
Slide 10: EPS Recycling
EPS RECYCLING
Slide 11: 2Q23 Financial Highlights
2Q23 FINANCIAL HIGHLIGHTS VOLUME COMPARABLE FREE CASH FLOW EBITDA 1.2M TONS US$201M US$216M Slight demand increase Decrease PET ref. margins Net Working Capital significantly improved Soft Markets in Lower EPS ref. margins by US$284 M Americas Higher feedstock costs Influence from Asian imports 1212
Slide 12: Volume Evolution
VOLUME EVOLUTION +3% 1,260 1,197 Polyester: 984K tons 1,161 250 (+5% QoQ) 213 P&C 222 Slight improvement, yet below expectation P&C: 213K tons (-4% QoQ) PP: oversupply impacting demand 1,011 984 Polyester EPS: competitive imports 939 2Q22 1Q23 2Q23 Quarterly sales volume (ktons) 1313
Slide 13: Feedstock Costs
FEEDSTOCK COSTS Paraxylene NA Propylene Contract Price 1,837 NA Px price increased to an 61 average of -20% Propylene prices decreased to US$1,352 50 an average of 1,505 40 cents 40 1,301 1,389 1,345 1,352 per ton 1,271 per pound 1,110 Disconnect increased to 1,081 1,070 1,001 1,034 US$282 1Q22 2Q22
Slide 14: EBITDA Breakdown
EBITDA BREAKDOWN Comparable EBITDA 369 5 Overall US$201 M 147 -3% 207 Polyester 201 77 3 70 -8 -32 148 US$127 M -13 (-4% QoQ) 3 Others 55 P&C 218 P&C 133 127 90 Polyester US$70 M (-9% QoQ) -3 2Q22 1Q23 2Q23 Carry-forward Inventory Others 2Q23 Reported Comparable Comparable Comparable Effect Adjustme
Slide 15: Free Cash Flow Generation
FREE CASH FLOW GENERATION 2,082 NWC: US$284M 148 Improvement in inventory 1,879 management 13 75 284 97 CAPEX: US$75M 45 Mainly from CCP & maintenance Income tax: US$97M Mainly from FCF:US$216M fiscal payments Net Debt EBITDA NWC Financial Taxes CAPEX Dividends Others Net Debt Mar’23 Expenses Jun’23
Slide 16: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt (US$M) LTM EBITDA (US$M) 2,082 1,879 1,776 1,236 1,270 LEVERAGE: 1,102 2.3 TIMES 1,512 1,186 827 2Q22 1Q23 2Q23 2Q22 1Q23 2Q23 Comp. EBITDA 1717
Slide 17: 2023 Revised Guidance & Key Assumptions
2023 REVISED GUIDANCE & KEY ASSUMPTIONS Revised ’23 Previous ‘23 Change Guidance Guidance (% vs. ’23) Crude Oil US$/Bbl 80 90 (11) MARKET Asia PTA/PET Margin US$/Ton 320 320 - Volume Mtons 4.65 4.90 (5) Comparable EBITDA1 US$M 770 920 (16) FINANCIALS Net Sales US$M 7,700 9,170 (16) CAPEX US$M 300 33
Slide 18: Q&A
Q &A JORGE YOUNG JOSÉ CARLOS PONS CEO CFO 1919
Slide 19: Second Quarter 2023 Earnings Webcast
SECOND QUARTER 2023 EARNINGS WEBCAST