Orbia Advance Corp. Sab De Cv · BMV:ORBIA
Orbia Advance Corp. Sab De Cv — Orbia — Investor Presentation (September 2024)
30 slides from Orbia Advance Corp. Sab De Cv's investor presentation, September 2024
Slide 1: Purpose-Driven. Customer-Focused. Addressing World Challenges.
Purpose-Driven. Customer-Focused. Addressing World Challenges. September 2024
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: Key Messages
Key Messages 01 Harnessing the power of material science and innovation to serve customer needs, address world challenges and provide sustainable solutions 02 Investing in profitable growth, leveraging our uniquely advantaged position to bring differentiated solutions to market 03 Maximizing the val
Slide 4: Global Imprint and Impact
Global Imprint and Impact Diversified global footprint Revenue1 by region Amsterdam, Netherlands 39% North America 19% South America Boston, MA USA Mexico City, Mexico $8.2B 10% Tel Aviv, 2023 Revenue1 Israel Asia 3% 30% Africa Europe ■ Operations and Commercial Activities 4 Global Strategic Hubs OR
Slide 5: Leading Positions Across all Businesses
Leading Positions Across all Businesses Decarbonization & Information Access Water & Food Security Energy Transition & Connectivity Polymer Building & Precision Fluor and Energy Connectivity Solutions Infrastructure Agriculture Materials Solutions Advantaged player in PVC Leading global provider of
Slide 6: Our Sustainability Strategy is embedded in our value chain
Our Sustainability Strategy is embedded in our value chain, enabling us to tackle three key global challenges At Orbia, sustainability is where strategy meets purpose, and purpose turns into action Through our operations, solutions and investments we contribute to tackling three key world challenges
Slide 7: Continuously improving operational performance on path to Net Zero
Continuously improving on our operational performance while making progress on our path to Net Zero Our pathway1 is backed by science-based commitments 2025 2030 2050 Safety Waste Climate Change Climate Change Total Recordable Incident 100% of plants will Reduce scope 1 & 2 GHG Reduce scope 3 GHG Ac
Slide 8: Innovation and Material Science are Key Competitive Advantages
Innovation and Material Science are Key Competitive Advantages >280 New products and Orbia Ventures services account for investing in Research and development 13% 11 promising startups professionals sharing our vision of revenues1 Portfolio2 of 3,817 4,912 Patents Trademarks 1. 2. Percent of 2022 re
Slide 9: Polymer Solutions
Polymer Solutions An industry leader in the production of PVC resins, polymer compounds and derivative materials. Enabling solutions for: #1 Specialty PVC producer globally2 • Food and water security #6 Resins producer globally • Clean water and sanitation #1 Latin America • Affordable housing and i
Slide 10: Polymer Solutions: Long-Term demand growth expected to outstrip capacity additions
Polymer Solutions Long-Term demand growth expected to outstrip capacity additions PVC Supply, Demand and Operating Rates1 2010-2030E Global PVC demand: 100 • Driven by building and infrastructure industries, 100% 90% urbanization & addressing worldwide water needs. 90 90%• Economic slowdown moderati
Slide 11: Building and Infrastructure
Building and Infrastructure Leader in providing city-scale water management solutions enabling the world to adapt to changing climate conditions Offering sustainable customer Leading market share solutions for drinking water, positions include: sanitation, climate-resilient cities and better buildin
Slide 12: Providing Solutions to Optimize Water Supply, Improve Sanitation
Building & Infrastructure Providing Solutions to Optimize Water Supply, Improve Sanitation, Enhance Urban Climate Resilience and Reduce Energy Use in Buildings Safe and Efficient Better Sanitation Climate-Resilient Better Building Water Supply and Hygiene Cities Performance Water Distribution Soil &
Slide 13: Our wide portfolio offers 'one-stop shop' for Building and Infrastructure
Building & Infrastructure Our wide portfolio offers ‘one-stop shop’ for Building and Infrastructure applications. Central ranges managed by global teams, local ranges managed by BU product teams. Building Infrastructure Hot & Cold Foul Water Water Solutions Solutions Soil & Waste Urban Climate Solut
Slide 14: Precision Agriculture
Precision Agriculture Focusing on precision irrigation systems, greenhouses and digital farming technologies Solutions enable farmers to get higher and better-quality yields #1 Global market share2 while using less water, fertilizer, energy and labor to play a critical role in driving a food-secure
Slide 15: Addressing Our Limited Resource Future with Precision Irrigation Solutions
Precision Agriculture Addressing Our Limited Resource Future with Precision Irrigation Solutions The world today: The world in 20501: Global water Irrigated area as Global irrigated area withdrawal by sector % of arable land by method 10B People 7% Micro-irrigation 70% Agricultural 18% Sprinklers 60
Slide 16: Sustainable Competitive Advantages with Full End-to-End Solutions
Precision Agriculture Sustainable Competitive Advantages with Full End-to-End Solutions Water Full • Best-in-class, broad range of storage services & end-to-end integrated offerings Automation & Pumps support fertigation • Strong brand based on reputable teams, largest distribution network, Agro mac
Slide 17: Fluor and Energy Materials
Fluor and Energy Materials Decarbonizing our environment and enabling the world’s transition to sustainable energy Enabling solutions by: #1 Fluorspar2 • Reducing the carbon footprint of steel, cement & aluminum production #1 Medical propellants2 • Transitioning to lower global warming potential ref
Slide 18: Fluorine Plays a Fundamental Role in Enhancing our Day-to-Day Lives
Fluor and Energy Materials Fluorine Plays a Fundamental Role in Enhancing our Day-to- Day Lives Infrastructure Cooling & Refrigeration Medical Propellants Pharmaceuticals Fluorspar is critical to cement, Fluorine is used in refrigerants Fluorinated medical gas Fluorine plays a key role steel and alu
Slide 19: Fluorine is a Critical Material Enabling Energy Transition
Fluor and Energy Materials Fluorine is a Critical Material Enabling Energy Transition The energy storage market Lithium-ion battery The element fluorine is used in: >20% 30kg 1 BINDER ELECTROLYTE (PVDF) (LiPF6) • The electrolyte that CAGR Acidspar per electric vehicle enables lithium ions to move (L
Slide 20: Connectivity Solutions
Connectivity Solutions Producing standard and advanced conduit and accessories for telecommunications infrastructure, including FTTx and Data Centers Essential and innovative products and solutions for passive network #1 Global market share2 Industry-leading infrastructure that connect cities, custo
Slide 21: Addressable Market Expanding Rapidly Driven by FTTx and Data Centers
Connectivity Solutions Addressable Market Expanding Rapidly Driven by Investments in FTTx and Data Centers FTTx Data Centers Large, multi-year growth driven Robust long-term growth outlook by need for fiber to support billions for data center investments driven of devices with private and by increas
Slide 22: Significant Tailwinds in United States
Connectivity Solutions Significant Tailwinds in United States, Driven by Increasing Appetite for Data & Public Investment >$100B Public Investment in Fiber Fiber Demand Growth Orbia Demand N. American New Fiber to the Home (FTTH) Passings • Positioned as market leader in BEAD $42.5 Mm homes/year dat
Slide 23: Financial Outlook
Financial Outlook 23
Slide 24: Consistent Performance Despite Weak Market Conditions
Financial Outlook Consistent Performance Despite Weak Market Conditions Revenue EBITDA US$B US$B $9.6 $2.0 $8.8 $1.9 $8.2 $7.0 $1.5 $6.4 $1.3 $1.3 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Revenue growth of ~17% between 2019 and 2023 24
Slide 25: Focused on Improving Cash Flow Conversion
Financial Outlook Focused on Improving Cash Flow Conversion Operating Cash Flow1 ($) & Operating Cash Flow Conversion2 (%) US$M $1,107 $982 $931 $871 Core drivers for improvement $766 include3: • Working capital improvements • Efficiencies from 66.1% 58.0% digitalization and process 56.1% 48.0% impr
Slide 26: Delivered Sequential Improvement Amidst a Slower than Expected Market Recovery
Financial Outlook – Q2 2024 Results Delivered Sequential Improvement Amidst a Slower than Expected Market Recovery Sales ($M) EBITDA ($M) & Margin (%) Operating Cash Flow ($M) $2,177 $1,863 $1,976 $444 $334 $253 $217 20.4% 13.6% 16.9% -$50 $4 Q2 2023 Q1 2024 Q2 2024 Q2 2023 Q1 2024 Q2 2024 Q2 2023 Q
Slide 27: Committed to Maintaining Investment Grade Rating
Financial Outlook Committed to Maintaining Investment Grade Rating • Target Net Debt/EBITDA: <2.5X • Bank Facility • Credit Ratings Debt by currency • Quarterly periods of higher leverage • Ample liquidity with $1.4B in • Moody’s: Baa3 2.0% due to business seasonality available credit under renewed
Slide 28: 2024 Guidance and Market Outlook
Financial Outlook 2024 Guidance and Market Outlook EBITDA CAPEX Net Debt to EBITDA Effective Tax Rate ~$1.3B $500M – $540M 2.70x – 2.85x 29% – 32% 1 Polymer Building & Precision Connectivity Fluor & Energy Solutions Infrastructure Agriculture Solutions Materials • We expect our end markets • We expe
Slide 29: Key Takeaways
Closing Remarks Key Takeaways 01 Orbia leads in water, food, climate resilience, energy transition and connectivity solutions and is poised to benefit from growth in these sectors 02 Vertically-integrated footprint on supply side of sustainability solutions and positioned to enable near-shoring of c
Slide 30: Orbia is a company driven by a shared purpose
Orbia is a company driven by a shared purpose: to advance life around the world. The five Orbia business groups have a collective focus on expanding access to health and wellness, reinventing the future of cities and homes, ensuring food and water security, connecting communities to information and