Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q3 2020 Earnings Presentation
22 slides from Grupo Rotoplas Sab De Cv's earnings presentation, Oct 22, 2020
Slide 1: Grupo Rotoplas Earnings Results Conference Call 3Q
Grupo Rotoplas Earnings Results Conference Call 3Q _q@October22, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements and information relating to Grupo Rotoplas S.A.B. de C.V. and its subsidiaries (collectively, “ROTOPLAS”) that are based on its knowledge of present facts, expectations and projections, circumstances and assumpt
Slide 3: Speakers
-potoplas: Speakers Carlos Rojas Aboumrad CEO Mario Romero Orozco CFO
Slide 4: Slide 4
Slide 5: 3Q | Strong Quarter
3Q | Strong Quarter /\ Y e) Double digit increase in sales & EBITDA + record for a quarter © Flow Implementing of powerful digital Building commitment throughout Creating value tools the organization +950 Initiatives +400 Involved employees 9.8% Roc S Workstreams +550 Hours of committee meetings 2\%
Slide 6: Water situation in Mexico
Water situation in Mexico | 8 Country Mexico Guatemala Peru USA El Salvador Argentina Costa Rica Brazil Honduras Nicaragua Source: World Resources Institute (WRI) Ranking Risk 24 3.86 2.36 2.05 185 1.66 131 0,92 0.78 0.27 0.21 6 General water risk! 44 43 4> an Mn relation to the percentage of consum
Slide 7: 7
7
Slide 8: Financial Highlights
Financial Highlights
Slide 9: COVID | Operations status
COVID | Operations status O July August September Meio e eo ee | Continuos Operations USA e ] ] ; Restricted Argentina fs r @ Operations Peru ] ] ] & & @ Central America
Slide 10: Financial Highlights
S.. Financial Highlights /poto las. Million MXN /\ Y 3Q20 3Q)9! A %/bps Net sales 2,364 || 2,003 || 18%| Cost of Sales | 1,383 || 1151 || 20%| Gross Profit, gt | 852 || 15%] Gross Profit Margin 41%|| 43%| (100)| OperatingIncome = ——s—s—< 6 | 809 || 1%) Operating Income Margin 12%| 15%| (380)| Compre
Slide 11: Sales per country | Mexico
/poroplas Sales per country | Mexico 6 Mexico A Sales 14% 9% AEBITDA (14%) (4%) + Double digit increase in storage and water flow + Launch of new water flow products + Record sales in bebbia 11
Slide 12: Sales per country
: $. Sales per country /potoplas:. Million MXN © USA - Argentina + "America went home improvement” trend favors sales + 29% sales growth in local currency * New store in Forth Worth, Texas + An impact on sales estimated in “$35 million due to operating restrictions Central America +. / + Efficient c
Slide 13: Sales | Products & Services Mix
, . /potoplas:. Sales | Products & Services Mix /\ Y 3Q20 3Q19 8% * 20% growth in products * Record sales in bebbia mServices * 4% decrease in services linked to m Products less WWTP contract signings in Mexico 93% 92% © 13
Slide 14: Strong Cash Position
Strong Cash Position /potoplas:. Million MXN / Y Current Leverage Balance Sheet 9M20 9MI19 A% Cash & Cash equivalents [ 3,394 || 1,546 || 120%| Total Debt | 4151 || 2,982 || 39%| Net Debt | 787 || 1,437 || (47%)| . . Net Debt / Adjusted EBITDA | 0.5x_ || 1.0x || (1.0%) | Bnei tiey Preis $4,000 * Net
Slide 15: Discipline in Capital Allocation
Discipline in Capital Allocation /potoplas a Million MXN ©} CAPEX 94 ilk al Ea mmm México mmm Argentina mami Other Sales % 3Q20 9M20 Total CAPEX 74 207 (6) % Sales 3% 3% 15
Slide 16: ROIC vs Cost of Capital
ROIC vs Cost of Capital (ysmaltest gap between ROIC & WACC OQ ow for the last 17 quarters La Greater discipline in Capital Allocation (Control Tower). Optimization of working capital. Increased production efficiency in manufacturing process. Divestment strategy for low return assets. Strict discipli
Slide 17: ESG Initiatives & progress
/potopls-. ESG Initiatives & progress 6 GO Initiative Description 3Q20 Progress (o) G Develop Rotoplas' talent through tools that Identification of value generating roles, Talent development allow them to achieve the objectives of their detection of gaps and elaboration of role development plans Ris
Slide 18: Strategy per country or region
Strategy per country or region © ~ ( e MEXICO ( 1) PERU plas. * Grow service platform bebbia. ri * Maintain leadership in storage and improvement * Maintain products leadership a * Develop and grow water flow and control segment * Explore new business opportunities Sytesa. + Maintain growth and prof
Slide 19: Guidance 2020
Guidance 2020 © Guidance Net sales >10% EBITDA margin 218% Net Debt / EBITDA <2x ROIC ZWACC 19
Slide 20: Capital Reimbursement
3) Capital Reimbursement otop!as.. 6 Proposal /\ Capital reimbursement in kind to the Company's shareholders, at the rate of ] AGUA" share for every 18 AGUA" shares held. /> If in any case, payment in kind with shares results in some fraction of a share, such fraction would be paid in cash to the co
Slide 21: /potop!2s:.
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Slide 22: Thank you!
Thank you! #Rotoplas 7 (ey Rotoplas Mexico itn Rotoplas ey 01800 506 3000 \ 22