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 — Q1 2023 Earnings Presentation
25 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Apr 25, 2023
Slide 1: First Quarter 2023 Earnings Webcast
FIRST QUARTER 2023 EARNINGS WEBCAST
Slide 2: Today's Speakers
TODAY’S SPEAKERS JORGE YOUNG JOSÉ CARLOS PONS ANTÓN FERNÁNDEZ CEO CFO IRO 3
Slide 3: Topics for Today's Webcast
TOPICS FOR TODAY’S WEBCAST I. Financial Performance II. Footprint Optimization III. Corporate Governance IV. Revised CAPEX 4
Slide 4: Integrated PET Reference Margins
INTEGRATED PET REFERENCE MARGINS Asian Margins | Px / MEG to PET (US$/Ton) China 431 420 410 400 +2% 382 356 330 338 343 306 318 • Asian reference margins averaged 266 269 US$343/Ton (+2% QoQ) 323 260 328 307 302 262 Asia-China spread increased to 184 243 264 PET 249 228 • 193 192 US$120/Ton (+5% Qo
Slide 5: Polypropylene Reference Margins
POLYPROPYLENE REFERENCE MARGINS NA Polypropylene Margins | PP to PGP (cpp) 52 47 47 38 39 34 32 -26% • PP reference margins decreased to 17 cpp (-26% QoQ) from additional 23 19 22 21 supply in the Americas 18 17 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2021 2022 2023 6
Slide 6: EPS Reference Margins
EPS REFERENCE MARGINS NA EPS Margin | EPS to Styrene (cpp) 75 -23% 64 56 49 49 43 EPS reference margins decreased 35 32 32 33 • 27 to 49 cpp (-23% QoQ); continued 25 normalization to previous levels 18 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2021 2022 2023 7
Slide 7: Ocean Freight Prices
OCEAN FREIGHT PRICES Decline to previous levels Asia – Americas Spot Ocean Freight Rate (US$K/Container) 12 US EC 11 US WC 10 US SA 9 8 7 6 5 4 3 2 1 0 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2021 2022 2023 8 Source: SCFI, prices based on 20-foot containers with 24-ton capacity from Shanghai
Slide 8: 1Q23 Financial Highlights
1Q23 FINANCIAL HIGHLIGHTS • Volume of 1.16M tons (-6% QoQ) primarily as a result of high PET inventory levels in the market, continued seasonality and lower exports in the Polyester Segment • Comparable EBITDA of US$207 million (-23% QoQ) mainly due to lower demand, the decrease in reference margins
Slide 9: Volume Evolution
VOLUME EVOLUTION Quarterly Sales Volume (Ktons) 1,359 -6% 1,260 1,230 1,216 246 1,161 • Overall quarterly volume of 1.16M 250 217 tons (-6% QoQ) 254 222 P&C • Polyester volume of 939 Ktons (-7% QoQ) due to high PET inventory levels in the market and continued seasonality softening demand 1,114 962 1
Slide 10: Feedstock Costs
FEEDSTOCK COSTS Crude Oil & Paraxylene NA Propylene Contract Price NA Px Brent Contract US$/Bbl US$/Ton cpp 140 2,000 90 Crude Oil (Brent) -8% 82 Px 80 120 -3% 73 • Brent crude oil price decreased to 70 67 1,500 66 63 61 +56% an average US$81 dollars per barrel 100 60 (-8% QoQ) 50 50 47 80 1,000 • P
Slide 11: EBITDA Breakdown
EBITDA BREAKDOWN 1Q23 EBITDA (US$M) 333 -23% • Comparable EBITDA of US$207 270 million (-23% QoQ) 142 207 • Reported EBITDA of US$187 million 120 0 -1 -19 187 (+1% QoQ) 77 99 P&C • Polyester Comparable EBITDA of US$133 million (-12% QoQ) 193 151 133 • P&C Comparable EBITDA of US$77 91 Polyester mill
Slide 12: Free Cash Flow Generation
FREE CASH FLOW GENERATION Quarterly Free Cash Flow (US$M) 2,082 8 185 1,860 • NWC increased by US$66 million, 52 57 mainly from rising raw material 187 42 prices in P&C segment 66 • CAPEX totaled US$52 million, mainly from CCP construction • Dividend payment of US$159 million to Shareholders approve
Slide 13: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times) 2,082 1,426 1,396 1,805 1,860 1,776 1,270 1,236 1,310 1,092 1,512 1,539 1,455 1.8 1,277 1,186 1.3 1.2 1.2 1.0 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Comp. EBITDA 14
Slide 14: Footprint Optimization
FOOTPRINT OPTIMIZATION • Cooper River’s PET Resin production transferred to other Alpek sites • Cost reductions of US$20 million/year and improvements in capacity utilization • Strengthening core business and increasing cost competitiveness • Growth with more efficient assets to remain as one of the
Slide 15: Corporate Governance
CORPORATE GOVERNANCE • Three new members of the Board of Directors were elected (two of them independent). • Share of female Board members is now 21% • Share of independent Board members at 64% • The addition of new and experienced members shall support Alpek´s long-term growth strategy and ESG goal
Slide 16: Revised CAPEX
REVISED CAPEX • Alpek originally provided a CAPEX Guidance of US$445 million for the year • Revised CAPEX Guidance of US$335 million as Alpek is taking more time to further optimize investment estimates and prepare projects for final investment decisions 17
Slide 17: Q&A
Q &A JORGE YOUNG JOSÉ CARLOS PONS CEO CFO 18
Slide 18: Appendix
APPENDIX
Slide 19: Extraordinary Effects Breakdown
EXTRAORDINARY EFFECTS BREAKDOWN 2023 2022 Delta US$M 1Q 1Q 4Q 1Q 4Q Reported EBITDA 187 456 186 (269) 1 Inventory 1 (63) 57 65 (55) Adjustment Carry-forward - (66) 27 66 (27) Others 19 6 - 13 19 Comparable EBITDA 207 333 270 (126) (63) 20
Slide 20: Relevant References | Crude Oil
RELEVANT REFERENCES | CRUDE OIL Prices declined due to challenging economic environment Brent Crude Oil Price US$/Bbl 140 120 100 100 81 80 71 70 64 60 54 42 40 20 0 2017 2018 2019 2020 2021 2022 2023 21
Slide 21: Relevant References | Paraxylene
RELEVANT REFERENCES | PARAXYLENE Px prices decreased by 3% NA Px Contract Price (US$/Ton) 1,837 -3% 1,505 1,389 1,345 1,301 1,174 1,033 1,066 1,069 954 996 891 702 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2021 2022 2023 22
Slide 22: Relevant References | Propylene
RELEVANT REFERENCES | PROPYLENE Prices increased as a result of PGP scarcity NA Propylene Contract Price | PGP (cpp) 82 73 67 66 +56% 63 61 54 50 45 47 34 33 32 2017 2018 2019 2020 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2021 2022 2023 23
Slide 23: For Additional Information
FOR ADDITIONAL INFORMATION Email: IR@alpek.com | Phone: +52 (818) 748-1146 ANTÓN • 17 Years at Alfa/Alpek FERNÁNDEZ • Alpek IRO / Corporate Finance / ESG Director since 2022 • Previously held roles as VP of Administration & Strategic Planning at Indelpro, Commercial IRO Technology Manager at Alpek P
Slide 24: Disclaimer
DISCLAIMER This presentation contains, or may be deemed to contain, “forward-looking statements”. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Alpek
Slide 25: First Quarter 2023 Earnings Webcast
FIRST QUARTER 2023 EARNINGS WEBCAST