Alpek, S.a.b. De C.v. Class A · BMV:ALPEK/A
Alpek, S.a.b. De C.v. Class A — Alpek Sab De Cv Ord — Q4 2023 Earnings Presentation
19 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Feb 20, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings Webcast
FOURTH QUARTER AND FULL YEAR 2023 Earnings Webcast 2
Slide 2: Today's Speakers
TODAY’S SPEAKERS JORGE YOUNG JOSÉ CARLOS PONS BÁRBARA AMAYA CEO CFO IRO 3
Slide 3: Today's Agenda
TODAY’S AGENDA 1 Overview 2 Current Priorities 3 Financial Performance 4 Guidance & Outlook 5 Q&A 4
Slide 4: 2023 Review
2023 REVIEW 1. Achieving structural cost reductions 2. Strengthening the balance sheet 5
Slide 5: 2023 Financial Highlights
2023 FINANCIAL HIGHLIGHTS FREE CASH FLOW NET WORKING CAPITAL CAPEX $277M $408M $596M 38% +269% YoY +244% YoY Reduction from Original Guidance TOTAL VOLUME COMPARABLE EBITDA TOTAL DEBT 4.64M TONS $734M $1.73B -8% YoY -47% YoY -7% YoY All amounts in U.S. dollars unless otherwise noted. 6
Slide 6: 1. Structural Cost Reductions
1. STRUCTURAL COST REDUCTIONS COST STRUCTURE IMPROVEMENT Footprint Organizational Improved Power Systems Efficiency ACTION Optimization Restructuring Supply Agreements & Centers of Excellence EFFECTIVE BY: 1Q24 2H24 1Q24 2025 IMPACT Annualized Run- Rate Savings $40M+ $35M $75M+ Annualized Run-Rate S
Slide 7: 2. Strengthening the Balance Sheet
2. STRENGTHENING THE BALANCE SHEET NET DEBT $1,729M Coupon Coupon 3.250% 5.375% Coupon Coupon 4.250% 5.375% $600M $503M $500M AVAILABLE COMMITTED $457M CREDIT LINES $584M $200M APPROVED SUSTAINABILITY- $133M LINKED LOAN $20M $200M Cash 2024 2025 2026 2027 2028 2029 2030 2031 Cash Bonds Bank Debt 5.2
Slide 8: 3. Remarkable Results in ESG
3. REMARKABLE RESULTS IN ESG SAFETY ENVIRONMENT OTHER TRIR SBTi3 CO2 Total Recordable Incident Rate Scope 1 & 2 Emissions (MTons) 1.40 -27% 2.77 6 2030 2.02 Recycled + biobased SBTi 2.01 products Target2 0.42 Target Top Decile +17% Recycled PET volume 2019 2023 2019 SBTi Base¹ 2023 21% 0 Accidents 2
Slide 9: Financial Results
FINANCIAL RESULTS 10
Slide 10: 4Q23 Financial Highlights
4Q23 FINANCIAL HIGHLIGHTS VOLUME COMPARABLE EBITDA1 1.1M TONS $167M OTHER -7% QoQ +5% QoQ • Influence from Asian • Higher PET and EPS • Net working capital imports reference margins $163M from inventory management • Demand slowdown • Lower feedstock costs optimizations from seasonality and in NA ove
Slide 11: Polyester
POLYESTER • Volume continued to see impact VOLUME COMPARABLE EBITDA from Asian imports 1,013 -5% 151 955 907 +7% • Lower feedstock cost and a more 122 favorable spread between North 114 American and Asian prices • Asian integrated PET reference margins increased 5% 21 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23 R
Slide 12: Plastics & Chemicals
PLASTICS & CHEMICALS • Sluggish demand in PP amid VOLUME COMPARABLE EBITDA seasonality and supply dynamics in the region -13% 120 217 222 193 • Continued pressure from Asian imports in EPS +3% 42 43 • Higher EPS reference margins 31 offset Polypropylene feedstock costs 4Q22 3Q23 4Q23 4Q22 3Q23 4Q23
Slide 13: Free Cash Flow Generation
FREE CASH FLOW GENERATION -7% 1,860 $596M NWC 1,729 Mainly due to inventory 62 management and lower 514 raw material prices 215 277 $277M CAPEX Scheduled maintenance 596 246 and CCP construction 179 $408M Op. FCF $131M $408 Operating FCF Net debt reduction Net Debt EBITDA NWC Financial Taxes CAPEX D
Slide 14: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt Leverage (Times) 2,082 1,879 3.4 1,729 1,675 2.9 Committed 2.6 2.3 to reducing 1.8 our leverage levels to below 2.5x 1Q23 2Q23 3Q23 4Q23 1Q23 2Q23 3Q23 4Q23 Proforma All amounts in millions of U.S. dollars unless otherwise noted 15
Slide 15: Looking Ahead
LOOKING AHEAD 1. Achieving structural cost reductions 2. Capitalize our position as a domestic supplier 3. Maximizing cash flow and further strengthening the balance sheet 16
Slide 16: 2024 Guidance
2024 GUIDANCE 2024 CHANGE METRICS UNITS 2023 GUIDANCE (% VS. 2023) Asia PTA/PET Margin US$/Ton 270 308 -12% MARKET China PTA/PET Margin US$/Ton 170 187 -9% Polypropylene Margin CPP 16 17 -12% Volume Mtons 4.8 4.6 +4% FINANCIALS Net Sales US$B 7.80 7.76 +1% Comparable EBITDA1 US$M 600 734 -18% CAPEX
Slide 17: Q&A
Q&A JORGE YOUNG JOSÉ CARLOS PONS CEO CFO 18
Slide 18: Visit alpek.com or Contact Us for Additional Information
VISIT ALPEK.COM OR CONTACT US FOR ADDITIONAL INFORMATION EMAIL: IR@alpek.com 19
Slide 19: Investor Relations
INVESTOR RELATIONS BÁRBARA AMAYA ALEJANDRA BUSTAMANTE IRO | Strategic Planning Director | IR Manager Corporate Finance Director bamaya@alpek.com abustamante@alpek.com 20