Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — FY2023 Earnings Presentation
32 slides from Grupo Rotoplas Sab De Cv's earnings presentation, February 2024
Slide 1: Corporate Presentation 2023
EE /potoplas:. 2023. 12M a8 fese re 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 years Transformation story: Rotoplas significantly increased its ROIC in 2 years Clear climate change and diversity targets Leader in sustainability and in
Slide 5: Mission and Vision
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
Corporate Pre Leveraging Rotoplas' leadership in the water industry Leading products and services in a rapidly growing and high-impact industry. Storage Improvement Waterflow Treatment and recycling Financial Guidance 2025 2x sales (vs. 2020) e@ EBITDA Margin 220% Net Debt / EBITDA $2.0x Double digi
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 - 2023 $2,385 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. Apotopls: Bs a Growth New Businesses @ nwestment phase: negative cash flow one EBITDA - 2023 ($254) @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: 12.0% 6.8x 12,774 12,146 10,915 8,644 7,859 7,790 6551 6,660 46802292 5,700 6,353 1,769 1.980 Thi it | | | 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 CAGR: 13.0% 8.0x 2006 2007 2
Slide 23: 2023 Results
/potoplas:. 2023 Results Rot MXN mm By country By solution Sales EBITDA CAPEX Sales EBITDA = Mexico a @ Products m Argentina m Services = USA $12,146 = Other 2023 2022 A %/bps Net sales 12.146 12,774 (5%) . Cost of Sales 6,625 7,331 (10%) Gast Conversion Cycle ra [ssa |[_ 3.444 | 1% | y = 45% 43% 29
Slide 24: 2023 Results: Debt and Balance Sheet
Corporate Presentation, 2023 Results MXN mm Debt Maturity Profile $4,011 $17 million working capital loan $4 billion from the issuance of our sustainable bond $i AGUA 17-2X 2023 2027 Oo Interest coverage* 9.2x TAX Six 47x ' 42x 2019 2020 2021 2022 2023 “Considers net interest paid = interest expense
Slide 25: ROIC closed the year with an 80 bps YoY expansion
ROIC closed the year with an YoY 80 bps expansion
Slide 26: AGUA* valuation vs. peers
Corporate Presentation AGUA* SY EBITDA eVegiTpA GR FLUIDRA SA 25.0% 12.9x 4.7% RELIANCE WORLDWI __ 15.8% 21.4% 9.5x 8.8% 37.9% FRANKLIN ELEC CO 12.7% 17.4% 13.4x 15.8% TORO CO 12.5% 11.0% 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 7.0% 7.8% 31.0x
Slide 27: Guidance 2024
Guidance 2024
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