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 — Q1 2024 Earnings Presentation
16 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Apr 23, 2024
Slide 1: First Quarter 2024 Earnings Webcast
FIRST QUARTER 2024 Earnings Webcast 1
Slide 2: Today's Speakers
TODAY’S SPEAKERS JORGE YOUNG JOSÉ CARLOS PONS BÁRBARA AMAYA CEO CFO IRO 2
Slide 3: Today's Agenda
TODAY’S AGENDA 1 Overview 2 Strategic Initiatives 3 Financial Performance 4 Q&A 3
Slide 4: Quarter Overview
QUARTER OVERVIEW 4 4
Slide 5: Cost Structure Improvement
COST STRUCTURE IMPROVEMENT 80% PROGRESS TOWARDS GOAL Footprint Improved Power Organizational Systems Efficiency ACTION: Optimization Supply Agreements Restructuring & Centers of Excellence EFFECTIVE BY: 1Q24 1Q24 2H24 2025+ EXECUTION: Completed Completed On-track On-track $60M $75M Achieved by 1Q24
Slide 6: Improvement in ESG Ratings
IMPROVEMENT IN ESG RATINGS B B Top Decile B- B- in the industry C 29 D 26 Risk 20 Rating Climate Water Supply 2021 2022 2023 Change Chain 2022 2023 Chemical Industry Risk Percentile 25 19 7 6
Slide 7: Financial Results
FINANCIAL RESULTS 7
Slide 8: 1Q24 Financial Results
1Q24 FINANCIAL RESULTS VOLUME +4% • In line with Guidance 1,161 1,202 VOLUME 1,100 • Improved volume, 1.2M TONS particularly for Polyester +4% YoY | +9% QoQ 1Q23 4Q23 1Q24 • Reference margins COMPARABLE EBITDA1 COMPARABLE EBITDA o PET: Stable $154M -26% o P&C: Lower -26% YoY | -8% QoQ 207 167 • High
Slide 9: Polyester
POLYESTER VOLUME COMPARABLE EBITDA -19% • Volume recovered from +6% 133 939 122 customers anticipating 907 990 107 109 heightened demand • Higher feedstock cost & increased Px disconnection 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Reported EBITDA • PET reference margins FEEDSTOCK REFERENCE MARGINS +5% +1% 343
Slide 10: Plastics & Chemicals
PLASTICS & CHEMICALS VOLUME COMPARABLE EBITDA • Volume recovered vs -5% -44% 77 4Q23. Down YoY as some 222 212 193 57 industries are still under 43 43 pressure • Higher feedstock costs led 1Q23 4Q23 1Q24 1Q23 4Q23 1Q24 Reported EBITDA to a decrease in average POLYPROPYLENE EPS reference margins FEED
Slide 11: Free Cash Flow Generation
FREE CASH FLOW GENERATION +5% -$160M NWC 1,807 Mainly due to higher raw 34 16 material prices & 1,729 168 160 36 32 sequential volume growth $34M CAPEX Scheduled maintenance -$94M Op. FCF $78M Net debt increase -$94 Operating FCF Net Debt EBITDA NWC Financial Taxes CAPEX Other Net Debt Dec 2023 Expe
Slide 12: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt Leverage 1,879 (Times) 3.7 3.4 1,807 2.6 Committed 1,729 2.3 to reaching the 2.5x 1,675 target year- end 2Q23 3Q23 4Q23 1Q24 2Q23 3Q23 4Q23 1Q24 All amounts in millions of U.S. dollars unless otherwise noted 12
Slide 13: Looking Ahead
LOOKING AHEAD 1. Achieving structural cost reductions • 80% progress made towards our goal this year 2. Capitalize our position as a domestic supplier • Progress in EPS recycling and attractive new markets for PET Sheet 3. Maximizing cash flow and further strengthening the balance sheet • Potential
Slide 14: Q&A
Q&A JORGE YOUNG JOSÉ CARLOS PONS CEO CFO 14
Slide 15: Investor Relations
INVESTOR RELATIONS BÁRBARA AMAYA ALEJANDRA BUSTAMANTE IRO | Strategic Planning Director | IR Manager Corporate Finance Director bamaya@alpek.com abustamante@alpek.com VISIT ALPEK.COM OR CONTACT US FOR ADDITIONAL INFORMATION: IR@ALPEK.COM 15
Slide 16: First Quarter 2024 Earnings Webcast
FIRST QUARTER 2024 Earnings Webcast 16