18 slides from Orbia Advance Corp. Sab De Cv's earnings presentation, 2019
Slide 1: Second Quarter 2019 Earnings Results Conference Call
Second Quarter 2019 Earnings Results Conference Call
Slide 2: Forward-Looking Statements
Forward-Looking Statements In addition to historical information, this presentation Mexichem has implemented a Code of Ethics that rules its contains "forward-looking" statements that reflect relationships with its employees, clients, suppliers and management's expectations for the future. The words
Slide 3: ▪ Opening Remarks ▪ Business Highlights ▪ Financial Highlights
▪ Opening Remarks ▪ Business Highlights ▪ Financial Highlights ▪ Closing Remarks 3 Second Quarter 2019 Earnings Results
Slide 4: Overview
Overview Vinyl Fluor Seeing sequential improvement Upstream business sales growing in double digits Pricing pressures and lower supply of raw materials Increase of illegal imports into the EU Revenue EBITDA down 7% to $1.8 billion down 12% to $372 million 10% on a constant currency basis 3% on a con
Slide 5: Our areas of focus
Our areas of focus ▪ Continuing as a resilient company ▪ Building a strong leadership team ▪ Well underway in our transformation 5 Second Quarter 2019 Earnings Results
Slide 6: In Q2 2019, well diversified and moving more downstream to specialty products
In Q2 2019, well diversified and moving more downstream to specialty products Sales by destination Sales by destination 6M’18 6M’19 North North Europe Europe America America 39% 37% 29% 31% South America Others South America Others 19% 13% 19% 13% EBITDA 6M’18 EBITDA 6M’19 6 Second Quarter 2019 Earn
Slide 7: ROIC above our cost of capital and consistent with our long-term strategy
ROIC above our cost of capital and consistent with our long-term strategy 9.2% ROIC (%) Mexichem Group 8.2% 7.9% 7.7% 6.5% 6.7% 2015 2016 2017 2018 LTM Jun-19 LTM Jun-19 wo IFRS ROIC: Adjusted NOPAT for continuing operations/Adjusted Equity from continuing operations + Liabilities with cost – Cash.
Slide 8: Proving ducts to carry power and fiber optics cables for 'greenfield city' in India
Proving ducts to carry power and fiber optics cables for ‘greenfield city’ in India 8 Second Quarter 2019 Earnings Results
Slide 9: Providing irrigation for 2,000 hectares of sugarcane in Tanzania
Providing irrigation for 2,000 hectares of sugarcane in Tanzania, Africa 9 Second Quarter 2019 Earnings Results
Slide 10: Partnership with StormHarvester for smart stormwater tanks
In partnership with StormHarvester to provide ‘smart’ stormwater tanks to capture rainwater 10 Second Quarter 2019 Earnings Results
Slide 11: Building our pipeline of innovative solutions
Building our pipeline of innovative solutions $130 million corporate VC fund to invest in early stage startups to bring innovation into Mexichem. Actively partnering with startups to expand our product offerings, decrease costs and enter new markets. Internal innovation program – inspiring each empl
Slide 12: Brief summary of results
Brief summary of results mm US$ Second Quarter EBITDA by quarter (US mm) Financial Highlights 2019 2018 %Var. Net sales 1,839 1,968 -7% Operating income 237 317 -25% EBITDA 372 423 -12% -129 EBITDA margin 20.2% 21.5% bps EBITDA wo IFRS 16 effect 353 423 -17% Net majority income 84 162 -48% Operating
Slide 13: Strong performance by business group
Strong performance by business group X% EBITDA margin X% D% vs last year *Constant currency Revenues % Total sales Vinyl. Fluent. Fluor 32% 57% 11% revenue growth 3,724 3,724 3,761 1,968 3,605 1,968 1,907 1,839 434 434 415 230 -7% -3% 408 230 -3% 207 1% 204 -11% 2,090 -6% -10% 2,090 -4% 2,210 1,144
Slide 14: Free cash flow
Second Quarter January - June Free cash flow 2019 2018 %Var. 2019 2018 % Var. mm US$ EBITDA 372 423 -12% 690 753 -8% Taxes paid (52) (78) -33% (106) (132) -20% Net interest paid (21) (22) -5% (105) (96) 9% Bank commissions (15) (4) 275% (20) (7) 186% Exchange rate gains (losses) (3) (22) -86% (4) (3
Slide 15: Committed with our investment grade rating
Committed with our investment grade rating Last Twelve Months Jun 2019 Dec 2018 Net Debt USD million 2,991 2,871 Net Debt/EBITDA 12 M 2.31x 2.05x Interest coverage 4.62x 5.59x Net debt USD includes $0.1 million of letters of credit with maturities of more than 180 days that for covenant purposes are
Slide 16: In these volatile and turbulent times...
In these volatile and turbulent times ….. Investment Grade Strong balance sheet and healthy debt profile Fitch Ratings S&P BBB BBB- Moody’s Baa3 Long-Term Debt Schedule 924.3 US$MM, as of June 30th, 2019 750.0 500.0 500.0 ▪ Debt Average Life 400.0 13.93 years 304.1 ▪ Weighted Average Cost of 154.0 D
Slide 17: Second Quarter 2019 Earnings Results
17 Second Quarter 2019 Earnings Results
Slide 18: Mexichem.
Mexichem.