Orbia Advance Corp. Sab De Cv · BMV:ORBIA

Orbia Advance Corp. Sab De Cv — Mexichem — FY2012 Earnings Presentation

27 slides from Orbia Advance Corp. Sab De Cv's earnings presentation, Feb 28, 2013

1. Slide 1: Mexichem's 4Q and full year 2012 results

   2013 Mexichem´s 4Q and February full year 2012 results Thursday, February 28 0

2. Slide 2: Forward looking information and safe harbor

   Forward looking information and safe harbor The material that follows is a presentation of general background information about Mexichem, S.A.B. de C.V. and its consolidated subsidiaries (collectively, “Mexichem”) as of the date of the presentation. It is information in summary form and does not pur

3. Slide 3: Senior management presenting

   Senior management presenting Ricardo Gutierrez Executive Committee Chairman 15 years with Mexichem 25 years of industry experience Antonio Carrillo Rule Enrique Ortega Chief Executive Officer Chief Corporate Development Officer Recently appointed in Mexichem 23 years with Mexichem 24 years of indust

4. Slide 4: Agenda

   Agenda  Introduction  4Q and full year 2012 results  Looking forward: 2013 opportunities  Appendix − 4Q and FY2012 results by segment − Consolidated balance sheet − Consolidated income statement 3

5. Slide 5: Strong track record of value creation

   Strong track record of value creation… Mexichem’s proven track record of growth EBITDA (US$mm) Stock price (MXN)  Ineos Fluor  Fluorita de Mexico  Policyd and Plásticos Rex  Wavin  Remaining 30% of Plastubos  Amanco  Tubos Flexibles  Grupo Primex (PVC)  Petroquimica Colombiana  Camesa trad

6. Slide 6: Through strategic activity and operational excellence

   … through strategic activity and operational excellence  Business structure redefinition to absorb JV with Pemex  Balance Sheet preparation for further growth  Antonio Carrillo assumes as CEO  Debt re–design, maintaining internal cap of 2.0x Net Debt / EBITDA (currently 0.67x)  Fire power of US

7. Slide 7: Agenda

   Agenda  Introduction  4Q and full year 2012 results  Looking forward: 2013 opportunities  Appendix − 4Q and FY2012 results by segment − Consolidated balance sheet − Consolidated income statement 6

8. Slide 8: Strong 2012 quarterly vs. 2011 quarterly results, driven mostly by acquisitions and synergies

   Strong 2012 quarterly vs. 2011 quarterly results, driven mostly by acquisitions and Synergies Consolidated volume (‘000 tons) Consolidated revenues (US$mm) 1,300 1,351 1,039 +251 24% +349 35% 1,114 952 953 +29 3% +154 19% +142 18% 748 +329 42% 859 2% +61 9% 881 1,010 1,049 1,002 798 811 687 785 1Q 2

9. Slide 9: Fulfillment of 20/20/20 vision

   Fulfillment of 20/20/20 vision Consolidated volume (‘000 tons) Consolidated revenues (US$mm) +25% 4,805 +10% 3,511 3,846 3,178 2,881 2,814 2010 2011 2012 2010 2011 2012 Consolidated EBITDA & EBITDA margin +21% 1,005 642 830 2010 2011 2012 Margin 22% 22% 21% Note: Unaudited financial figures 8

10. Slide 10: Unexpected one-offs and market conditions affected results

    Unexpected One–Offs and market conditions affected results FY 2012 expected vs. FY12 actual reconciliation (US$mm) 20 21 15 14 7 76 1,120 (17.4%)¹ (18.3%)¹ 55 (13.0%)¹ (12.2%)¹ (6.1%)¹ 17 1,005 Total FY2012 = 77 (66.1%)¹ (14.8%)¹ 47.8%¹ Total 4Q2012 = 67 Total FY2012 = 93 Total FY2012 = 55 Total 4Q2

11. Slide 11: Most of the non expected impacts were on the 4Q

    Most of the non expected impacts were on the 4Q 4Q12 expected vs. 4Q12 actual reconciliation (US$mm) 21 296 19 (18.3%)¹ 15 (16.5%)¹ 6 6 31 (13.0%)¹ (5.2%)¹ (5.2%)¹ 17 Total = 67 (27.0%)¹ (14.8%)¹ 180 Total = 48 Total of the effects = 115 Expected Receivables & Waving VCM Shortage PVC expansion Pemex

12. Slide 12: Wavin: expected rationalization delay

    Wavin: expected rationalization (face of Europe´s market condition) delay Wavin acquisition ─ synergies and restructuring 1 Synergies and expansion 2 Capacity relocation and flexibilization  Raw Materials  Costs savings through the outsourcing of labor intensive products to regions outside − Centr

13. Slide 13: PVC expansion delay and others

    PVC expansion delay and others PVC volume (000´s tons) Actual Expected 1,500 1,150 1,150 980 150 930 1,000 1Q11 1Q11 4Q11 4Q11 4Q12 4Q12 1Q13 1Q13 4Q15 4Q15 Impact MU$D Reasons 2012 6 • Delay in new equipment • Delay in new equipment and new process inclusion in operations as a result of tight deman

14. Slide 14: VCM shortage (Pemex outage + PPG force majeure) + Pemex JV

    VCM shortage (Pemex outage + PPG force majeure) + Pemex JV Pemex´s VCM operation vs. Target Pemex JV Production Real Ethane maintenance Ethylene (Pemex Gas) 600 Scheduled Maintenance Pemex is the Mexichem is the main only Pemex 500 Mexichem VCM customer for VCM customer for Chlorine 400 Compounds 30

15. Slide 15: Maximum refrigerant prices impacted 4Q EBITDA

    Fluorine prices trend impacted 4Q EBITDA in 31 U$D million Fluorine prices trend Year Comments Refrigerants Fluorspar 2007 • Historic prices very steady (Fluorspar, HF and Refrigerants) 16,000 500 • Long Term contracts 14,000 450 2008 • China export duty for Fluorspar 12,000 400 2009 • Reduction of

16. Slide 16: Agenda

    Agenda  Introduction  4Q and full year 2012 results  Looking forward: 2013 opportunities  Appendix − 4Q and FY2012 results by segment − Consolidated balance sheet − Consolidated income statement 15

17. Slide 17: Attractive strategic growth opportunities remain within our three segments

    Attractive strategic growth opportunities remain within our three segments Fluorine Chlorine–Vinyl Integral Solutions Integral Solutions Manufacturers Geographic footprint New Hydrofluoric acid Chlorine–Vinyl Integral Solutions Ethylene Fluoropolymers Manufacturers Existing Advanced VCM Technologies

18. Slide 18: Balance Sheet ready for growth

    Balance Sheet ready for growth Debt amortization profile (US$mm) No relevant amortizations until 2015 965 400 374 203 29 130 100 28 106 2013 2014 2015 2016 2017 2018 2019 2022 2042 Highlights Current Cash in hand US$1.6bn Net Debt / EBITDA 0.7 x Revolver facility US$1.0bn Cash flow generation 60% of

19. Slide 19: M&A Opportunities for 2013: Integral Solutions Chain

    M&A Opportunities for 2013: Integral Solutions Chain Vertical integration Main strategies Other building  Increase capacity and / or market share in key markets systems  Potential targets in key markets  East Europe  Middle East Water  Synergies management  Technology  Conclusion of transfer

20. Slide 20: M&A Opportunities for 2013: Chlorine-Vinyl Chain

    M&A Opportunities for 2013: Chlorine – Vinyl Chain Vertical integration Vertical integration Main strategies 1 JV with OxyChem 2 JV with Pemex  Increase PVC portfolio of products and geographical footprint through acquisitions Highlights Highlights  Potential targets in key markets and / or for ke

21. Slide 21: M&A Opportunities for 2013: Fluorine Chain

    M&A Opportunities for 2013: Fluorine Chain Vertical integration [] Main strategy  Further integration into more value–added products trough mergers Fluorspar Hydrofluoric Fluoro– Fluoro– Fluoroela  Update Fluorspar and HF prices to market trend Acid carbons polymers – tomers #1 #2 #9 1,000 135 108

22. Slide 22: Agenda

    Agenda  Introduction  4Q and full year 2012 results  Looking forward: 2013 opportunities  Appendix − 4Q and FY2012 results by segment − Consolidated balance sheet − Consolidated income statement 21

23. Slide 23: 4Q and FY2012 consolidated results

    4Q and FY2012 consolidated results Consolidated results Fourth Quarter 2012 January–December 2012 Consolidated Million Pesos 2012 2011 % Var. 2012 2011 % Var. Net Sales 14,424 10,474 38% 63,398 47,310 34% Gross Profit 4,526 3,591 26% 20,515 15,913 29% Net Income (79) 103 N/A 4,579 2,711 69% Operatin

24. Slide 24: 4Q and FY2012 results by segment

    4Q and FY2012 results by segment Integral solutions chain Fourth Quarter 2012 January–December 2012 Integral solutions chain 2012 2011 % Var. 2012 2011 % Var. Net Sales 9,362 5,068 85% 33,930 18,771 81% Operating Income (287) 433 N/A 2,377 2,049 16% EBITDA 740 711 4% 4,500 2,996 50% Volumes & Prices

25. Slide 25: 4Q and FY2012 results by segment (cont'd)

    4Q and FY2012 results by segment (cont’d) Fluorine chain Fourth Quarter 2012 January–December 2012 Fluorine chain 2012 2011 % Var. 2012 2011 % Var. Net Sales 2,264 2,499 (9%) 11,159 10,853 3% Operating Income 275 596 (54%) 3,418 3,190 7% EBITDA 776 807 (4%) 4,793 3,979 20% Volumes & Prices Fourth Qu

26. Slide 26: Consolidated balance sheet

    Consolidated balance sheet Consolidated balance sheet results Pesos in thousands Dec–12 Dec–11 Total assets 99,733,429 60,456,761 Cash and temporary investments 21,411,114 7,675,504 Receivables 12,115,691 8,990,694 Inventories 9,739,137 6,657,677 Others current assets 1,883,490 1,831,948 Long term a

27. Slide 27: Consolidated income statement

    Consolidated income statement Consolidated income statement results Pesos in thousands January–December 2012 Fourth Quarter 2012 2012 2011 % 2012 2011 % Net Sales 63,397,746 47,309,622 34% 14,423,790 10,474,237 38% Cost of Sales 42,883,227 31,396,206 37% 9,897,838 6,883,099 44% Gross Profit 20,514,5

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