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 2024 Earnings Presentation
18 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Jul 24, 2024
Slide 1: Second Quarter 2024 Earnings Webcast
SECOND QUARTER 2024 Earnings Webcast 2
Slide 2: Today's Speakers
TODAY’S SPEAKERS JORGE YOUNG JOSÉ CARLOS PONS BÁRBARA AMAYA CEO CFO IRO 3
Slide 3: Today's Agenda
TODAY’S AGENDA 1 Overview 2 Strategic Initiatives 3 Financial Performance 4 Q&A 4
Slide 4: Quarter Overview
QUARTER OVERVIEW 5
Slide 5: Altamira Operations
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Slide 6: Cost Structure Improvement $75M
COST STRUCTURE IMPROVEMENT 100% PROGRESS TOWARDS 2024 GOAL Systems Efficiency Footprint Improved Power Organizational ACTION: & Optimization Supply Agreements Restructuring Centers of Excellence EFFECTIVE BY: 1Q24 1Q24 3Q24 2025+ EXECUTION: Completed Completed Completed On-track $75M Effective by 3Q2
Slide 7: Progress on ESG Front
PROGRESS ON ESG FRONT • Alpek published its 2023 Sustainability Report, including the following 1st improvement additions: in last 5 years • New Materiality Matrix • Roadmap showcasing our BBB decarbonization journey BB BB 2021 2022 2023 8
Slide 8: Financial Results
FINANCIAL RESULTS €\alpek 9
Slide 9: 2Q24 Financial Results
2Q24 FINANCIAL RESULTS VOLUME - • Both volume & Comp. VOLUME 1,197 1,202 1,202 EBITDA in line with 1.2M TONS Guidance Flat YoY & QoQ • Stable volume, with an 2Q23 1Q24 2Q24 improvement for Polyester COMPARABLE EBITDA COMPARABLE EBITDA • Partially offset by temporary $158M -21% disruptions in Altamir
Slide 10: Polyester
POLYESTER VOLUME COMPARABLE EBITDA -20% • Volume increase mainly from +2% 984 1,000 127 a continuation of stable 990 107 122 102 demand levels • PTA production from Altamira impacted by 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Reported EBITDA scheduled maintenance and PX PRICES REFERENCE MARGINS temporary rest
Slide 11: Plastics & Chemicals
PLASTICS & CHEMICALS VOLUME COMPARABLE EBITDA • Volume down primarily -5% -26% from temporary 213 212 202 70 interruptions in Altamira 52 43 44 • EPS reference margins witnessed a recovery, while 2Q23 1Q24 2Q24 2Q23 1Q24 2Q24 Reported EBITDA PP remained flat POLYPROPYLENE EPS PROPYLENE PRICES REF. MA
Slide 12: Ocean Freights
OCEAN FREIGHTS • Continued conflict in the 500 Red Sea, alternate East Coast West Coast transportation routes and 400 South America tight capacity 300 • Significant role in domestic 200 markets that could generate potential 100 opportunities 0 2019 2020 2021 2022 2023 1Q24 2Q24 • Increase reaching lev
Slide 13: Free Cash Flow Generation
FREE CASH FLOW GENERATION -5% $34M NWC 1,807 170 Mainly from variations in 34 22 20 14 1,726 raw material prices 40 26 $22M CAPEX Scheduled maintenance $116M Op. FCF $82M Net debt decrease $116 Operating FCF Net Debt EBITDA NWC Financial Taxes CAPEX Dividends Other Net Debt Mar 2024 Expenses Jun 202
Slide 14: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt Leverage (Times) -8% 1,807 3.7 3.4 3.3 2.6 Committed 1,729 1,726 to reaching 2.5x target 1,675 3Q23 4Q23 1Q24 2Q24 3Q23 4Q23 1Q24 2Q24 All amounts in millions of U.S. dollars unless otherwise noted 15
Slide 15: 2024 Priorities
2024 PRIORITIES 1. Achieving structural cost reduction initiatives • $75M annualized savings up-to-date • Looking for additional opportunities 2. Capitalize our position as a domestic supplier. • Reliable supply of high-quality products • Sustainable packaging solutions – CaPETAll patent for bottle
Slide 16: Q&A
Q&A JORGE YOUNG JOSÉ CARLOS PONS CEO CFO 17
Slide 17: Investor Relations
INVESTOR RELATIONS BÁRBARA AMAYA ALEJANDRA BUSTAMANTE IRO | Strategic Planning Director | IR Manager Corporate Finance Director bamaya@alpek.com abustamante@alpek.com VISIT ALPEK.COM OR CONTACT US FOR ADDITIONAL INFORMATION: IR@ALPEK.COM 18
Slide 18: Second Quarter 2024 Earnings Webcast
SECOND QUARTER 2024 Earnings Webcast 19