Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Investor Presentation (2020)
33 slides from Grupo Rotoplas Sab De Cv's investor presentation, 2020
Slide 1: Corporate Presentation First Quarter 2020
Corporate Presentation First Quarter 2020
Slide 2: Disclaimer
/potopl2s: The contents of this presentation, including text, graphics, images and other materials (“Content”), here contained, is for general information purposes only. While we endeavor to keep the information up to date and correct, Grupo Rotoplas, S.A.B. de C.V., makes no representations or warr
Slide 3: Investment Considerations
Investment Considerations WATER A nascent industry of opportunities Market leaders ? PROVIDING SOLUTIONS 3 WITH A CLEAR PURPOSE Sustainable long-term model “more and better water” 4 5 6 WHERE WE ARE GOING Growth and value opportunities STRONG FINANCIALS Sustainable focus WHY OWN AGUA? Momentum MEMBE
Slide 4: Water: A nascent industry of opportunities
WATER A nascent industry of opportunities
Slide 5: Population growth and water supply trends
Soure: Facts and Trends. UN Water. Population Growth 2020 2050 Urban,4.0B.....7,0B Total 7.0B 10.0B for non-agricultural uses increases than the population General population will grow by an average of Water Supply Imbalance in water distribution ] O countries control 6 O% of the global fresh water
Slide 6: Water Challenges for Sectors of interest
Water Challenges for Sectors of interest for Rotoplas: Humanity people worldwide of the world’s population Water scarcity & live without access to live in areas that have water scarcity adequate sanitation services at least once a month quality Water management & Market Size & Dynamics recycling bil
Slide 7: Case Study — Mexico City
Case Study — Mexico City ior “Nowadays, 40% of inhabitants have problems W regarding water access and quality” Poor quality i.e. Nowadays in Tlalpan neighborhood the local government spends US$7M annually in water trucks CDMxX International Airport * The city's water system provides 8% of the supply
Slide 8: Providing Solutions: Market leaders
PROVIDING SOLUTIONS Market leaders
Slide 9: The Company
y potoplas-. The Company 1994 1Q20 Storage Products Water Market Leader (@) 0 1 country 14 countries (14x)! 800 direct clients 33,300+ points of service 500 employees 3,250+ employees (7x)! 3,000 points of sale 27,500+ points of sale (9x)! 2 product lines 27 product lines (14x)! 8 plants 19 plants (
Slide 10: Key metrics 2014 - LTM March 2020
Key metrics 2014 - LTM March 2020 $6,552 $8,109 A 24% Sales 40% 7% A -33% Government sales - 33,300+ A 33,300+ Treatment & purification units $860 OS) $1,423 A 66% EBITDA 2,703 3,251 AS48 Employees 13% 4% A9% Client concentration 13.1% 175% A 440pb EBITDA Margin 23,000+ 27,500+ A 4,S00+ Points of sa
Slide 11: Decentralized Water Solutions | Business Model
; . ; Apotopls-. Decentralized Water Solutions | Business Model Rotor TODAY ---------------- 2-22-22 2-2-2022 -2 2-02 -5---------- » EVOLUTION Products Services B2D @ Water Purifying e-commerce 1 _ - Ne Residential e@ Commercial e Schools Storage @ Water flow ® “e Treatment & heating eo Water treatm
Slide 12: Portfolio | Products and Services
Portfolio | Products and Services Sales by soluton tm Services 8% Products 92% EBITDA by solution tm Services 3% Products 97% PRODUCTS SERVICES STORAGE PURIFICATION le ; id a itis Af. Se ie me Water Tanks Cisterns Industrial Other a Residential Institutional WATER FLOW lh. s = - & ww Pipes Valves Pu
Slide 13: Favorable Growth Drivers | Tailwinds
y Favorable Growth Drivers | Tailwinds /potoplas:. Storage Rapid urban growth = supply interruption > higher demand for water storage products Water demand > centralized system capacity (old infrastructure and poor city planning) a Growing trend of circular economy - use of recycled resins in water
Slide 14: • • • • • • • • • • • • • •
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Slide 15: With a Clear Purpose
WITH A CLEAR PURPOSE Sustainable long-term model “more and better water”
Slide 16: Competitive Advantages
Competitive Advantages - Value - Quality - Social Responsibility + Over 27,500 points of sale in America + Over 33,300 points of treatment, recycling and purification Source: Rotoplas. Information as of December 2018. ER OVATION /potopls bt + Focus on ESG (Environmental, Social & Governance) - Opera
Slide 17: ESG focus
ESG focus /potopls:. sy Q QQ +24,000 hrs! training collaborators on human rights, processes, health and safety, among other topics 53% independent By Board Members Audit, Compensation and Corporate -& Practices Committees chaired by independent Board Members GOVERNANC S +7,800! oy plumbers trained a
Slide 18: Best Corporate Governance Practices
Best Corporate Governance Practices Board of Directors Compensation Committee Audit Gi a] Committee © OS ey Corporate Practices Committee Sustainability Committee Our board of directors: /potoplas:. Transparency = > Diversity — > Innovation = > Equality = > Experience = > 53% Independent Members 5 i
Slide 19: Where We Are Going
WHERE WE ARE GOING Growth and value opportunities
Slide 20: Flow's program kick off quote from CEO
“.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
Slide 21: Flow | Transformation Program
Flow | Transformation Program 3) otoplas:.. A. Enhance performance of current portfolio * Revenue levers 1) Price & volume optimization * Cost levers 1) Procurement of materials 2) Manufacturing efficiency 3) Distribution costs optimization + Working capital levers 1) Inventory levels optimization 2
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Slide 23: Water-as-a-Service Platform
- Water-as-a-Service Platform /potop!5:. Mega Trends Building and o) a FE. S. leasing a /potoplas.. Sate eo 4 Sytesa.d \ a Operation and WWTP Wastewater treatment Water reuse & . H e Treated \ S ; Water and recycling plants _/ i maintenance wastewater , SINS SEMIN discharge . ! to sewage On-site tre
Slide 24: E-commerce platform in the USA
E-commerce platform in the USA The platform: #1 online retailer of water storage products ©) J . . . . (3) Access to a nationwide manufacturing footprint through Tank Co. strategic alliance J . . (3 Innovation in the water space (storage, septic) to address the pressing needs rN . (3 Order online an
Slide 25: Improve discipline in Capital Allocation
Improve discipline in Capital Allocation Resource allocation for: & SZ Organic growth Inorganic growth Share buybacks Coherence matrix approach Geo [Fe Process: 9 —- p— Project proposal Evaluation /potoplas: Dividend Payment Debt Payment any] afl Validation and Quarterly status authorization update
Slide 26: Strong Financials
STRONG FINANCIALS With a sustainable focus
Slide 27: Track Record of Growth and Profitability
Track Record of Growth and Profitability Revenue by Country MXN mm $8,109 | $6,660 | $5,353 | 2016 2017 2018 2019 Lm™ Adjusted EBITDA by Solution MXN mm CAGR: 19.1% sas $1286 1% $1004 $738 "4% 2% 16% 2016 2017 2018 2019 mexico MH other Argentina $1,982 4% 25% 4% i... 62% 1a9 1@20 $1,938 17% $1421 MH
Slide 28: Sound Financials
Sound Financials MXN mm Debt amortization calendar Prior to second reopening 80% 20% $2,400 $600 — | 2019 2020 2027 After second reopening 100% $1,600 5 52.400 ll 2019 2020 2027 Interest coverage* 7.2x 5.6x 5.7x 5.2x ATx 2016 2017 2018 2019 LTM “Considers interest payments from interest bearing liab
Slide 29: ROIC vs Cost of Capital
EB, | ROIC vs Cost of Capital /potoplas:. Improvement in ROIC through the Closest spread between and © Flow transformational pr tn the last . ‘\ Greater discipline in Cap ” Allocation (Control Tower). } Optimization of working capital. /,\ Increased production efficiency in “ manufacturing process.
Slide 30: Why Own AGUA?
6 WHY OWN AGUA? Momentum
Slide 31: Business Model Resilience
Business Model Resilience 0) Continuous growth ©) Double digit margins (O)Strong Management Mexico — 41 years Central America — 23 years Peru — 21 years Argentina - 21 years Brazil — 20 years USA — 5S years 4.6x CAGR: 12.4% 6.551 8,660 5,399 5.700 5 359 4.680 3,049 2,659 2415 2.161 iii tI I 2006 200
Slide 32: EV/EBITDA to growth
EBITDA CAGR EV/EBITDA to (18e-22e) growth GEBERIT EV/EBITDA to growth AQUA VENTURES TORO FLOWSERVE XYLEM EVOQUA COWAY FLUIDRA AGUA 2018-2022 EBITDA CAGRe
Slide 33: rotoplas.com contact
~ rotoplas.com & Rotoplas SIPs Rotoplas Mexico nn) Rotoplas 9 01800 506 3000