Alpek, S.a.b. De C.v. Class A · BMV:ALPEK/A
Alpek, S.a.b. De C.v. Class A — Investor Presentation (February 2025)
50 slides from Alpek, S.a.b. De C.v. Class A's investor presentation, February 2025
Slide 1: Institutional Presentation February 2025
INSTITUTIONAL PRESENTATION FEBRUARY 2025
Slide 2: Index
INDEX ALPEK AT A GLANCE STRATEGY AND COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 2
Slide 3: Alpek holds leading positions across two main segments
ALPEK HOLDS LEADING POSITIONS ACROSS TWO MAIN SEGMENTS Revenues for 2024 resulted in $7.5B USD 66% 34% Of Sales POLYESTER PLASTICS & CHEMICALS Of Sales EPS Natural Gas Trading Industrial PET PET Recycled Polypropylene Chemicals Resin Sheet PET #1 #1 #1 #1 ONLY #1 #1 PET Resin PTA PET Sheet EPS Produ
Slide 4: Our global footprint
OUR GLOBAL FOOTPRINT POLYESTER P&C CAPACITY BY PRODUCT OTHER EPS 6% 5% PP 8% PTA rPET 35% 3% 8.2 9 COUNTRIES M Tons 34 PLANTS 43% +5,500 EMPLOYEES WORLDWIDE PET 4
Slide 5: Index
INDEX ALPEK AT A GLANCE STRATEGY & COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 5
Slide 6: Investment thesis
INVESTMENT THESIS Leadership positions in attractive markets in the Americas Focus on efficiency, low costs, quality & service Cyclical businesses, with high potential for cash flow generation Achieving growth and dividend payments, maintaining solid financial strength and investment grade Experienc
Slide 7: Resilient end-markets account for 89% of volume
RESILIENT END-MARKETS ACCOUNT FOR 89% OF VOLUME 95% of sales are dollar-based Volume by Industry 2024 Sales Geography 2024 ME ASIA & OTHERS Housing & Construction EUR 3% Sales outside of MEX 13% Resilient End-Market 7% 1% 87% 67% USA/CAN SA 38% 19% Consumer Goods 18% Volume 2024 Sales 2024 4,745 Kto
Slide 8: Growth through key strategic acquisitions
GROWTH THROUGH KEY STRATEGIC ACQUISITIONS SALES VOLUME TOTAL CAPACITY OPERATIONS (KTONS) (MTONS) 2012 2024 +16% +23% 20 plants 34 plants 3 countries 9 countries 4,745 8 4,086 6.5 2012 2024 2012 2024 2012 2015-2016 2018 2019 2020 2021 2022 IPO (BMV) Styrenics Polyester PET acquisition (UK) Styrenics
Slide 9: Long-term strategy based on key pillars
LONG-TERM STRATEGY BASED ON 3 KEY PILLARS 1 STRENGTHEN CORE BUSINESS 3 STRATEGIC & FOCUSED GROWTH GROWTH Global Cost Value-added Footprint Value Chain Product M&A Improvement Products Optimization Integration Innovation Opportunities Drive competitiveness Shift to products with higher Ensure global
Slide 10: Management with 25+ years average experience
MANAGEMENT WITH 25+ YEARS AVERAGE EXPERIENCE Clear strategy & culture of empowerment ensure efficient operations Jorge Young José Carlos Pons Teresa Quintero CEO (34) CFO (27) CHRO (14) Alejandro Llovera Alejandro Alanis Andreas Plettner David Coindreau Roberto Blanco President President President P
Slide 11: Index
INDEX ALPEK AT A GLANCE STRATEGY & COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 11
Slide 12: 2024 Highlights
2024 HIGHLIGHTS • Annual Comparable EBITDA $699 M (+17% Original Guidance) • Volume reached 4.7 M tons; (+2% YoY) driven by stable demand across segments • $75 M in Cost Savings following strategy to enhance long-term competitiveness • CAPEX $121 M (-19% Revised Guidance) • Successful deleveraging s
Slide 13: Financial results
FINANCIAL RESULTS Sales Volume (KTon) Revenues (US$M) 4,802 4,798 5,065 10,555 4,635 4,745 P&C 7,697 7,759 7,530 Others 5,326 Polyester P&C Polyester 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Reported EBITDA (US$M) CAPEX (US$M) 1,455 862 Comparable 1,396 EBITDA 1,145 962 734 646 699 530 601
Slide 14: Free cash flow generation
FREE CASH FLOW GENERATION Free Cash Flow Leverage (US$M) (Times) 570 3.3 3.4 518 489 491 2.9 442 433 Target Average 2.5 389 2.1 1.6 1.7 1.6 253 203 1.3 1.1 104 16 17 18 19 20 21 22 23 24 16 17 18 19 20 21 22 23 24 14
Slide 15: Dividends
DIVIDENDS US$1,500M delivered to 13.2 Shareholders 9.0 9.6 8.1 6.5% 5.9 5.6 7.2 average 3.0 3.4 3.4 dividend yield 2.1 372 US$150M average 183 dividend payment 161 143 143 143 132 100 114 111 95 2013 20141 2015 2016 2017 2019 20202 2021 2022 2023 2024 (1) Paid in December 2013 15 (2) (1) Showing US$
Slide 16: Free cash flow generation
FREE CASH FLOW GENERATION FCF 2024 (US$M) 53 1,884 170 1,729 646 37 84 NWC 155 78 Primarily driven by higher -$224 volumes. 224 CAPEX Mainly from scheduled maintenance, 40% lower than $121 original Guidance figure DIVIDENDS Operating FCF US$104M Dividend to Shareholders of $170 $132M in September Ne
Slide 17: Healthy balance sheet
HEALTHY BALANCE SHEET Consolidated Debt Profile (Dec. 2024) (US$M) Cash Bonds Bank Debt Coupon Coupon 3.250% 5.375% 4.1 YEARS OF DEBT MATURITY Coupon Coupon 600 4.250% 5.375% 503 500 Solid Credit Ratings RATING: OUTLOOK: 326 SL Coupon Loan* 5.375% Baa3 Stable 200 120 BBB- Stable 62 BBB- Stable Cash
Slide 18: Index
INDEX ALPEK AT A GLANCE STRATEGY & COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 18
Slide 19: Continued progress towards our main ESG targets
CONTINUED PROGRESS TOWARDS OUR MAIN ESG TARGETS Scope 1&2 Goal SAFETY SBTi CO2 Achieved (TRIR) Scope 1 & 2 Emissions (MTons) 1.40 2.80 2030 SBTi 1.90 2.01 Target2 0.5 Target Top Decile 2019 2024 2019 SBTi Base¹ 2024 0 Accidents 32% Across 10 Plants CO2 Emissions Reduction +4 Years 40% Without Accide
Slide 20: Improvement in our ESG ratings
IMPROVEMENT IN OUR ESG RATINGS S&P Global CSA 1st Low Risk rating B B 1st improvement in last 5 years B- B- B- 26 26 59 59 Rating D Risk 54 20 Rating BBB BB BB Climate Water Supply 2022 2023 2024 2022 2023 2024 2022 2023 2024 Change Chain1 2023 2024 25 19 7 90 91 93 Chemical Industry Percentile Risk
Slide 21: Biovento: Alpek's organic fertilizer
BIOVENTO®: ALPEK’S ORGANIC FERTILIZER Organic fertilizer produced with microorganisms 5 QUALITY PROPERTIES: 1. Turns nitrogen in the air into nutrients that plants easily absorb 2. Increases crop production by 25% on average and quality with fast-assimilating nitrogen (100% yield) 3. Focused on the
Slide 22: Index
INDEX ALPEK AT A GLANCE STRATEGY & COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 22
Slide 23: Alpek is prepared to capitalize on the upside
ALPEK IS PREPARED TO CAPITALIZE ON THE UPSIDE Our focus remains on solidifying our financial position HEADWINDS BASE TAILWINDS - Continuation of industry Global overcapacity + Accelerated capacity conditions rationalization - Slower than expected Low margin environment + Improvement in fair trade ma
Slide 24: 2025 Guidance
2025 GUIDANCE 2025 CHANGE METRICS UNITS 2024 GUIDANCE (VS. 2024) Asia PTA/PET Margin US$/Ton 270 297 -9% MARKET China PTA/PET Margin US$/Ton 160 159 +1% Polypropylene Margin cpp 14 15 -7% Volume Mtons 4.8 4.7 +2% FINANCIALS Comparable EBITDA1 US$M 625 699 -11% CAPEX US$M 150 121 +25% Net Sales US$B
Slide 25: Cost reduction initiatives
COST REDUCTION INITIATIVES Priorities • Improving operative performance • Reducing fixed & variable costs $100M • Optimizing footprint by 3Q25 $75M • EPS Footprint Optimization (+$20M) • Polyester Footprint Optimization • Improved Power Supply Agreements • Organizational Restructuring COMPLETED IN P
Slide 26: Beaver Valley facility shutdown
BEAVER VALLEY FACILITY SHUTDOWN • Ceased operations in the BV Facility located in Monaca, Pennsylvania in January 2025. • Site had an installed capacity of 123,000 tons of EPS, 2% of Alpek’s total assets. • Production will be transferred to other sites in NA. • Part of our Footprint Optimization eff
Slide 27: Index
INDEX ALPEK AT A GLANCE STRATEGY & COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 27
Slide 28: PET is #1 for a reason
’ PET is #1 for a reason 100% RECYCLABLE HDPE PVC LDPE RECYCLED AT HIGH RATES ONLY PLASTIC THAT CAN BE REMADE BACK TO ITS ORIGINAL PURPOSE PP PS OTHERS HOWEVER, THEY ALL GET BUNDLED TOGETHER, 28
Slide 29: You can easily identify PET products
You can easily identify PET products, just look for the 29
Slide 30: Beverage packaging industry units by substrate
BEVERAGE PACKAGING INDUSTRY UNITS BY SUSTRATE (B UNITS ) 30
Slide 31: Let's put it into perspective
187 gr. CO 182 gr. CO 2 x 2 x Let’s put it into 37 gr. CO 2 x perspective» CARBON FOOTPRINT OVER LIFECYCLE, PER 355 ML. BOTTLE. 31
Slide 32: Let's put it into perspective
90 gr. CO x2 Let’s put it into 31 gr. CO 2 10 gr. CO x perspective» 2 x CARBON FOOTPRINT OVER LIFECYCLE, PER 355 ML. BOTTLE. 32
Slide 33: Made at temperatures hotter than lava
IS MADE AT TEMPERATURES HOTTER THAN LAVA. IS MADE AT A TEMPERATURE HOTTER THAN THE SURFACE OF VENUS. IS MADE AT THE SAME TEMPERATURE NEEDED TO MAKE A NICE SLICE OF PIZZA. 33
Slide 34: CO2 from flying NYC to San Francisco vs recycling PET bottles
The CO2 emissions generated by flying from NYC to San Francisco is equal to that from recycling PET bottles 34
Slide 35: Index
INDEX ALPEK AT A GLANCE STRATEGY & COMPETITIVENESS FINANCIAL RESULTS ESG PROGRESS QUARTERLY UPDATES THE CASE FOR PET APPENDIX 35
Slide 36: Balance sheet accounts
BALANCE SHEET ACCOUNTS Net Working Capital (US$M) Property, Plant and Equipment (US$M) 1,165 2,502 2,424 2,285 876 1,934 1,914 608 655 602 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Net Debt (US$M) Stockholders’ Equity (US$M) 1,860 1,884 2,696 1,729 IFRS 16 2,409 2,281 1,967 1,185 1,225 1,653
Slide 37: State-of-the-art technology
Conventional Conventional Esterification Oxidation Post- Pre-Poly Oxidation Polymerization Crystallization Filtration and Pelletization Drying Precursosr CTA Storage Storage Precursor Feed Prep Preheating Low-cost production & Patents Crystallization Hydrogenation Annealing Crystallization Solid Sta
Slide 38: Our global footprint
OUR GLOBAL FOOTPRINT P PET rPET Country Site PTA Resin Sheet Flake Pellet SPT PP EPS Other Altamira 1,000 640 240 Mexico Cosoleacaque 610 185 15 (2,790) Lerma 100 Fayetteville, NC 170 64 Columbia, SC 640 725 Bay St. Louis, MS 430 15 USA Richmond, IN 66 31 (2,409) Darlington, SC 26 Painesville, OH 45
Slide 39: Our value chain
OUR VALUE CHAIN 0.66 ton PX 0.84 ton PTA per ton PTA per ton PET 0.80 ton Ethylene per ton EO 0.06 ton Pentane per ton EPS 0.79 ton Benzene per ton Styrene 0.94 ton Styrene 0.29 ton Ethylene per ton EPS (From Natural Gas) per ton Styrene 0.72 ton EO NAPHTHA per ton MEG 0.34 ton MEG per ton PET 1.01
Slide 40: Relevant references | Paraxylene
RELEVANT REFERENCES | PARAXYLENE Px disconnection decreased to $194 per ton Px Contract Price (US$/Ton) 1,508 1,462 1,345 1,352 1,341 1,293 1,235 1,235 1,174 1,033 1,073 992 1,005 954 1,104 1,124 876 1,054 1,081 1,070 1,055 1,063 1,083 985 894 702 857 879 847 579 2015 2016 2017 2018 2019 2020 2021 2
Slide 41: Relevant references | Integrated PET margins
RELEVANT REFERENCES | INTEGRATED PET MARGINS Stability throughout 2024 PET Integrated Margins | Px / MEG to PET (US$/Ton) 382 392 359 343 332 306 297 297 305 340 285 288 266 269 272 227 223 296 268 279 227 223 223 225 206 203 155 154 166 170 146 147 2015 2016 2017 2018 2019 2020 2021 2022 1Q 2Q 3Q 4
Slide 42: Relevant references | Propylene
RELEVANT REFERENCES | PROPYLENE NA Propylene Contract Price | PGP (cpp) 71 72 69 -21% 54 55 53 51 45 47 43 42 39 39 34 33 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q 2Q 3Q 4Q 2024 42
Slide 43: Relevant references | Polypropylene margins
RELEVANT REFERENCES | POLYPROPYLENE MARGINS NA Polypropylene Margins | PP to PGP (cpp) 45 34 24 25 22 21 - 19 18 15 17 13 15 15 15 15 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 1Q 2Q 3Q 4Q 2024 43
Slide 44: Relevant references | EPS reference margins
RELEVANT REFERENCES | EPS REFERENCE MARGINS NA EPS Margin | EPS to Styrene (cpp) 56 +19% 43 36 35 36 32 31 33 26 27 26 18 2016 2017 2018 2019 2020 2021 2022 2023 1Q 2Q 3Q 4Q 2024 44
Slide 45: Ocean freight prices
OCEAN FREIGHT PRICES Trending back to historical levels Asia – Americas Spot Ocean Freight Rate (US$/Ton) 600 East Coast West Coast 500 South America 400 300 200 100 0 2018 2019 2020 2021 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2022 2023 2024 45 Source: SCFI, prices based on 20-foot containers with 24-t
Slide 46: Stock highlights (BMV: ALPEK)
STOCK HIGHLIGHTS (BMV: ALPEK) Daily Stock Price (MXN) 35 30 25 Valuation 2021 2022 2023 2024 20 15 10 Market Cap. (US$M) 2,282 2,810 2,208 1,456 Jan May Sep Jan May Sep Jan May Sep Dec Net Debt (US$M) 1,225 1,860 1,729 1,884 2022 2023 2024 EBITDA LTM (US$M) 1,145 1,455 514 646 Daily Average Traded S
Slide 47: How to: Integrated PET reference margins
HOW TO: INTEGRATED PET REFERENCE MARGINS Methodology based on public information (Bloomberg) 0.66 ton PX per ton PTA 0.84 ton PTA per ton PET Three-Step Guide PET Margin = PET Price – (Yield PET from PTA * PTA Price) – (Yield PET from MEG * MEG Price) PX PTA PET 1 86 890 0.84 710 0.34 610 US$ / PET
Slide 48: Contact us for additional information
CONTACT US FOR ADDITIONAL INFORMATION BÁRBARA AMAYA (+13) ALEJANDRA BUSTAMANTE (+12) IRO | Strategic Planning | Corporate Finance IR Manager bamaya@alpek.com abustamante@alpek.com Email: IR@alpek.com 48
Slide 49: Disclaimer
DISCLAIMER This presentation contains, or may be deemed to contain, “forward-looking statements”. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Alpek
Slide 50: Fourth Quarter 2024 Institutional Presentation
FOURTH QUARTER 2024 Institutional Presentation FEBRUARY 2025
Alpek, S.A.B. de C.V. — Investor Presentation (February 2025) on 6ix