Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Investor Presentation (December 2023)
32 slides from Grupo Rotoplas Sab De Cv's investor presentation, December 2023
Slide 1: Grupo Rotoplas Corporate Presentation
OM re Grupo Rotoplas S.A.B. de CV. Corporate Presentation
Slide 2: Our water management solutions
Our water management solutions Clear structure for a sustainable future Solid Financials Water, a resource at risk Mission | for people to have more and better water Vision | Offer non-centralized and sustainable water solutions, with relevant benefits for our customers, within the Rotoplas Way
Slide 3: Our water management solutions
_ ~ Our water '@ | ad management . solutions C)
Slide 4: Key Messages
Corporate Presentation Key Messages Rotoplas pays dividends annually, despite being a growing company Sustainable growth plan: double sales in 5 yea rs Transformation story: Rotoplas significantly increased its ROIC in 2 years Clear climate change and diversity targets Leader in sustainability and i
Slide 5: Mission, vision and water problems
0108 | For people to have | Offer non-centralized more and better water and sustainable water solutions, with relevant benefits for our customers, within the Rotoplas Way We are currently at a crucial point in addressing water-related problems. 40% deficit between water 36 billion USD to renew suppl
Slide 6: Leveraging Rotoplas' leadership in the water industry
Leveraging Rotoplas' leadership in the|water industry Leading products and services in a rapidly Financial Guidance 2025 growing and high-impact industry. 2x sales (vs. 2020) e@ EBITDA Margin 220% Waterflow @ Storage Net Debt / EBITDA $2.0x Double digit ROIC > WACC Sustainability Guidance 2025 a> Fe
Slide 7: A story motivated by water
A story motivated by water 14 countries International expansion begins with the plant Rotoplas starts Rotoplas is born The first polyethylene in Mexico water tank is in Guatemala operating in Argentina C3RBroptas. launched 18 plants r 0) sti © 5 27 product lines Acquisition of Talsar . Rotoplas is l
Slide 8: Our Products | Solutions for adapting to climate change
Corporate Presentation fporoplas:. Our Products | Solutions for adapting to climate change Value Traditional Business @ Leading brands (a) Strong market share C1) Strong cash flow @ Steady EBITDA - YTD $1790 re) Dividend payment \ ‘gate | SENORIAL “fotoplaS- ‘ovsctsyocoe Calor que perdura
Slide 9: Our Services | Climate change mitigation solutions
Corporate Presentation Our Services | Climate change mitigation|solutions Treatment & recycling rsa Rotoplas servicios de agua Acuantia. /poroplas a Growth New Businesses @ nwestment phase: negative cash flow @ Negative EBITDA - YTD ($213) @strong earnings growth potential Ne
Slide 10: Rotoplas' presence
Corporate Presentation Rotoplas’ presence I Mature market IB Expanding market Mi Emerging market © Plan PP Explore (— ) an Storage | Acuantia. [se | Apotoplas | Apotoplas | /poto plas XN J Ee 8 (— S S EE s Instalamas » a Waterflow tubopi tubops" /potop!4 confianza 2. J af = >) Improvement z= | Apoto
Slide 11: What's next for Rotoplas?
What's next for Rotoplas? Guidance 2025 2x Sales Double digit ROIC > WACC Growth Avenues ss Water as a Service Platform Mexico & Brazil bebbia. /Rotoplas: SS ACUANTIA United States Acuantia. & ss Launching of new solutions dase ACuantia. iS Synergies between operations ws D&A Platforms
Slide 12: What's next for Rotoplas? | 2025 expected growth
Corporate Presentation What's next for Rotoplas? | 2025 expected growth PRODUCTS 1S -17% Mexico 15 -17% Argentina 12-14% USA! 24 - 26% Other 16 - 18% SERVICES? 82 — 84% TOTAL 20 —- 22% 1. Storage solutions (retail business) 20 - 22% 1S - 17% 12 - 14% margin > 5% 16 — 19% Margin > 0% 26 - 28% 2. Incl
Slide 13: New Businesses Growth | Market Opportunity
Corporat ion New Businesses Growth | | Market Opportunity BB Main initiatives 2023 /rotop! bebbia. - 3 M households (82C) -1M institutional clients (B28) - 500 M USD annual recurring revenues - Process automation - Development of digital platform - Optimization of field services - Grow B2B Acuantia.
Slide 14: 360º Value generation | 2021-2025 Sustainability Strategy
Corporate Presentation 360° Value | 2021-2025 Sustainability Strategy 0 360° stakeholder ; _ SOO YALE impact | poaitabilty and collection 0° STAKEHOLDER Iajpg \ a 7 ——> Employees \ 5 Clients and users —> Suppliers | — Investors and financial Boosting talent community } > Authorities } / 0) — Academi
Slide 15: Results & Goals | ESG
Corporate Presentation Results & Goals| ESG @Wrofa Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) Olaner CO, Intensity - Scope 1 and Scope 2 — per ton of processed resin m? of purified water using our solutions Olerple People impacted with access to sanitation (cumulative) W
Slide 16: Nearshoring | Opportunities in the Water Industry
Corporate Presentation Nearshoring | Opportunities in the Water Industry fporoplas:. Companies are beginning to move their production chain to Mexico, and this represents a great opportunity for our market. Why Mexico? | 2 | * Location + Trade openness | 14 free trade agreements with 5O countries +
Slide 17: Clear structure for a sustainable future
Clear structure for a sustainable future
Slide 18: Flow has become the daily way of operating within Rotoplas
Flow has become the daily way of operating within Rotoplas. • • • ° • • • • ∼ • • • • • • • • • • • • • • • •
Slide 19: Board & Top Management
Corporate Presentation Corporate structure | Board & Top Management Our board of directors Transpar independent mem internationalmembers Represented by 3 nt generations CEO Equality Gender equality on the Board, omen Board members VP of H and S an Capital tainability VP of North and VP Individual So
Slide 20: Discipline in Capital Allocation
Corporate Presentation, Discipline in Capital Allocation Resource allocation for: a ® Organic growth Inorganic growth Share buybacks Dividend Payment Debt Payment Coherence matrix approach. Process: - e YS Pees yh wt Project proposal Evaluation IRR > WACC Validation and Quarterly status approval upd
Slide 21: Solid Financials
= Solid Financials
Slide 22: Business Model Resilience
Corporate Presentation Business Model Resilience MXN mm SALES EBITDA CAGR: 11.9% 6.7x 12,774 11,895 10,915 8,644 7,859 7,790 6551 6,660 16805222 5,700 6,353 1.769 1.980 2,161 2.418 Th | | | | 2006 2007 2008 2009 2010 201 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM CAGR: 13.0% 8.0x 200
Slide 23: 9M23 Results
/potop!s:- 9M23 Results Rot MXN mm By country By solution Sales EBITDA CAPEX Sales EBITDA S a ys = Mexico @ Products m Argentina m Services $8,770 $1,577 $274 = USA $8,770 = Other 9M23 9M22 A %/bps Net sales 8,770 9,649 (9%) Cash Conversion Cycle Cast of Sales 4,750 5,610 (IS%) 60 days ra [4019 || 4
Slide 24: 9M23 Results: Debt Maturity and Balance Sheet
Corporate Presentation, /potopl2s:. 9M23 Results MXN mm Debt Maturity Profile Strong Balance Sheet to support growth September 2023 $4,096 Cash and Cash Equivalents $18 million working Other Asssets 11,687 capital loan ‘TotalAssets = [_ 12,320 | $4 billion from the Debt issuance of our Other Liabili
Slide 25: ROIC-WACC spread exceeds earnings guidance
ROIC-WACC spread exceeds earnings guidance
Slide 26: AGUA* valuation vs peers and IPC
Corporate Presentation AGUA* FLUIDRA SA 25.0% 37.9% 12.9x 4.7% RELIANCE WORLDWI __ 15.8% 21.4% 9.5x 8.8% GRUPO ROTOPLAS 13.9% 15.3% 7.7K 17.7% FRANKLIN ELEC CO 12.7% 17.4% 13.4x 15.8% TORO CO 12.5% 1.0% 15.4x 15.8% VALMONT INDS 9.6% 9.6% 12.8x 74% COWAY CO LTD 8.9% 10.4% 3.8x 17.5% BADGER METER INC
Slide 27: Guidance 2023
Guidance 2023
Slide 28: Water a resource at risk
Water a resource at risk /potoplas:
Slide 29: Our water supply is at risk, requiring decentralized water solutions
Our water supply is at risk, requiring decentralized water solutions Imbalance in water distribution ] 6) countries control 6BO%or the global fresh water supply n”nr™ anno Across the world, water supply & sewer systems are 40% to 60-80 decrease in @ years atl renewable water . er capita in the last
Slide 30: Water situation in Mexico
Corporate Presentation Water situation in Mexico | 8 General water risk Americal General water risk! Country Ranking Risk Mexico 24 3.86 Guatemala 87 2.36 Peru 66 2.05 50 49 USA vA 185 49 48 ag a7 46 46 46 46 El Salvador 78 166 “84493 a2 gy Argentina 92 131 37 Costa Rica 107 0.92 343333 32 49 Brazil
Slide 31: Water cost evolution | USA
Corporate Presentation Water cost evolution | USA Trends in consumer prices (CPI) for utilities higan State University Water & Sewer (1953) Postage (1935) CPI (1913, 1983=100) Electricity (1913) Natural Gas (1935) Tel. Services (1997=100) Water is the fastest rising utility cost
Slide 32: Investor Relations
INVESTOR RELATIONS Maria Fernanda Escobar Mariana Fernandez mfescobar@rotoplas.com mfernandez@rotoplas.com Institutional e-mail agua@rotoplas.com https://rotoplas.com/inversionistas
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