Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q3 2019 Earnings Presentation
17 slides from Grupo Rotoplas Sab De Cv's earnings presentation, Oct 24, 2019
Slide 1: Grupo Rotoplas Earnings Results Conference Call 3Q19
Grupo Rotoplas (AGUA*) Earnings Results Conference Call 3Q19 October 24th, 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements and information relating to Grupo Rotoplas S.A.B. de C.V. and its subsidiaries (collectively, “ROTOPLAS”) that are based on its knowledge of present facts, expectations and projections, circumstances and assumpt
Slide 3: Speakers
Speakers Carlos Rojas Aboumrad CEO Mario Romero Orozco CFO 3
Slide 4: What pushes us
What pushes us: Relentless evolution FOTOS DE COMUNIDADES Permanent innovation Y OPERACIONES Talent promotion Communities development 4
Slide 5: Flow program kick off: ROIC greater than WACC
“…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 5
Slide 6: Flow | Transformational Program
Flow | Transformational Program Profitability of Growth initiatives Transformation current portfolio • Revenue levers • Improve quality and execution on growth • Innovation opportunities • Talent development • Cost levers • Clear set of opportunities: • Cross-selling opportunities • Asset optimizati
Slide 7: Financial Highlights
Apotoplas: Financial Highlights
Slide 8: ESG Results 2019
ESG Results 2019 ✓ • • • ✓ • • • Rotoplas is included in the sample of the IPC Sustentable of the Mexican Stock Exchange Sample size: 30 issuers Rotoplas improves Bloomberg ESG rating from 55.4 to 59.5 - Top 10 in Mexico 9
Slide 9: Geographic Breakdown
Geographic Breakdown Sales • Government sales represented 1.4% in the quarter vs. 3.0% in 3Q18 • Growth in sales, linked to EBITDA storage, water treatment plants in Mexico and higher sales of pipes and heaters in Argentina. 10
Slide 10: Portfolio Mix
Portfolio Mix 3Q19 3Q18 • Good traction in the water as a service platform • Revenue recognition linked to WWTP that started to operate this quarter. • Positive trend in bebbia 11
Slide 11: Financial Highlights
Financial Highlights Million MXN Income Statement 3Q19 3Q181 Var (%) 9M19 9M181 Var (%) Net Sales 2,022 1,939 4.3% 5,978 5,738 4.2% Cost of Sales 1,156 1,166 (0.9%) 3,477 3,488 (0.3%) Gross Profit 866 773 12.1% 2,501 2,250 11.2% Gross Profit Margin 42.8% 39.9% 7.5% 41.8% 39.2% 6.7% Operating Income
Slide 12: Current Leverage
Current Leverage Million MXN Leverage remains within the established debt policy of 2.0x Net Debt / EBITDA Sale of manufacturing assets in the US increased $762 million in cash position Net Debt to adjusted EBITDA ratio decreased from 1.5x to 1.1x 13
Slide 13: YTD Cash Flow
YTD Cash Flow 2019 2018 Var (%) The cash generated from continued EBIT 773 685 13% 1 operations amounts to Depreciation 566 272 108% $575 million Cash flow from: Operating Activities 2 1,337 602 122% Investing Activities (232) (1,359) (83%) Financing Activities (605) (62) 876% Cash Flow 499 (820) (1
Slide 14: ROIC vs. Cost of Capital
ROIC vs. Cost of Capital ROIC has an inflection point in September, increasing 200 bp compared to December 2018 and changing previous quarters’ trend. 15
Slide 15: 2019 Guidance
2019 Guidance Sales mid single digit growth EBITDA Margin 16% - 17% Despite the headwinds in Mexico and Argentina the company is posted to grow and increase its profitability. 16
Slide 16: Q&A
Q&A 17
Slide 17: Thank you
rotop!as: rotoplas.com &Rotoplas §J [py Rotoplas Mexico jj) Rotoplas oy 01800 506 3000