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 — Q2 2021 Earnings Presentation
24 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Jul 21, 2021
Slide 1: Second Quarter 2021 Earnings Webcast
SECOND QUARTER 2021 EARNINGS WEBCAST
Slide 2: Today's Speakers
Today’s Speakers José de Jesús Valdez José Carlos Pons Alejandro Elizondo CEO CFO IRO 3
Slide 3: Topics for Today's Webcast
Topics for Today’s Webcast I. Financial Performance II. CarbonLITE rPET Acquisition III. ESG Improvement & Index IV. Revised Guidance 4
Slide 4: Integrated PET Margins
Integrated PET Margins Margins increased by 8% QoQ due to continued demand strength US$/Ton Asian Margins (Px / MEG to PET) 600 China 500 +8% 400 382 370 356 324 330 304 310 300 277 275 266 214 250 242 227 223 260 227 214 164 262 PET 200 227 249 208 192 196 145 172 175 165 159 100 155 140 122 110 94
Slide 5: Relevant References: Polypropylene Margins
Relevant References: Polypropylene Margins PP margins remain high as effect from polar vortex persists NA Polypropylene Margin (PP to PGP) cpp +46% 50 47 45 40 35 32 30 27 25 24 22 21 22 20 19 16 17 15 15 15 13 12 12 10 5 0 11 12 13 14 15 16 17 18 19 1Q 2Q 3Q 4Q 1Q 2Q 2020 2021 6
Slide 6: 2Q21 Financial Highlights
2Q21 Financial Highlights • Record high second quarter volume of 1.2 million tons (+8% YoY) on track with Guidance estimate • Comparable EBITDA of US $225 million (+51% YoY) due to record 2Q volume & strengthened margins • Dividend payment of US $128 million approved at Annual Shareholders’ Meeting,
Slide 7: Volume Evolution
Volume Evolution Alpek Sales Volume (KTon) +8% • Highest second quarter volume 1,260 1,248 1,230 in Alpek’s history 1,201 1,109 234 256 234 • Polyester volume increased YoY 256 P&C 176 (+1%) due to strengthened demand • Slight Polyester volume decrease QoQ as temporary 1,026 992 996 drought in Altam
Slide 8: Feedstock Costs
Feedstock Costs Crude Oil and Paraxylene NA Propylene Contract Price NA Px Brent Contract US$/Bbl US$/Ton cpp -8% 80 1,400 80 Crude Oil (Brent) Px +13% 73 +12% 70 67 1,165 1,200 • Crude oil price increased (+13%) 1,077 60 as a result of rising demand for 996 60 955 937 1,000 refined products 891 50
Slide 9: EBITDA Breakdown
EBITDA Breakdown 2Q21 EBITDA (US$M) 273 1 3 +11% 18 • Comparable EBITDA of US$225M 225 29 (+11% QoQ) in 2Q21 3 203 136 • Polyester Comp. EBITDA of 17 US$102M (+14% QoQ) as margins 120 were strengthened 149 1 97 • P&C Comp. EBITDA of US$120M 46 (+23% QoQ) from higher PP margins due to longer-than- ex
Slide 10: Free Cash Flow Generation
Free Cash Flow Generation US$M 128 11 1,247 1,219 273 • NWC gain of US$6M as increase in 132 raw material prices offset by supplier credit terms • Total CAPEX of US$132M includes 32 25 US$96 million from the acquisition 6 of CarbonLITE´s rPET site • Strong FCF of US$90M in 2Q21 as higher CAPEX was o
Slide 11: Net Debt & Leverage
Net Debt & Leverage Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times) 1,428 2.0 2.0 2.0 1,247 1.9 1,235 1,219 1,185 1.7 733 701 657 623 601 977 2.1 1.9 778 1.7 735 719 1.6 565 1.3 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 Comp. EBITDA Net Debt / Comp. EBITDA
Slide 12: Acquisition of CarbonLITE's rPET facility
Acquisition of CarbonLITE’s rPET facility • Reaffirming Alpek’s position as largest PET recycler in The Americas • Achieves goal of supplying customers 25% recycled content by 2025 • Brand-new assets and state-of-the-art technology • Winning bid of US$96M on a debt-free basis • Strategically located
Slide 13: ESG: Improvement & Index
ESG: Improvement & Index • Strong improvement in Alpek’s 2020 ESG performance & ratings • Alpek was added to the S&P / BMV Total Mexico ESG Index • Participants’ commitment to ESG translates into higher returns CO2 Emissions (M Tons) Water Consumption (M m3) -8.7% -7.7% 2.42 2.21 Scope I 0.80 0.77 2
Slide 14: Revised 2021 Guidance & Key Assumptions
Revised 2021 Guidance & Key Assumptions Revised ‘21 Previous ‘21 Change 2020 Guidance Guidance (% vs. ‘20) Crude Oil US$/Bbl 70 63 42 67 Market Asia PTA/PET Margin US$/Ton 300 285 269 12 MXN / USD (Avg.) MXN 21.1 21.1 21.5 (2) Reported EBITDA US$M 880 750 565 56 Financials Comparable EBITDA1 US$M 76
Slide 15: Q&A
Q&A José de Jesús Valdez José Carlos Pons CEO CFO 16
Slide 16: Appendix
APPENDIX
Slide 17: EBITDA Evolution
EBITDA Evolution EBITDA (US$M) 11% 324 • 2Q21 Comparable EBITDA of US$225M (+11% QoQ) 273 • Increase largely due to better 225 polyester margins, solid EPS 203 201 performance and higher PP 179 margins 149 154 151 • Reported EBITDA of US$273M up (+268% YoY) due to better Comp. EBITDA 74 US$35M Badwi
Slide 18: Breakdown of Extraordinary Effects
Breakdown of Extraordinary Effects 2021 2020 Delta M dls 1Q 2Q YTD 1Q 2Q YTD 1Q 2Q YTD Reported EBITDA 324 273 597 111 74 185 214 199 413 Inventory Adjustment (63) (18) (81) 17 42 59 (80) (60) (140) Carry-forward Effect (58) (29) (87) 20 39 59 (78) (68) (146) Others 0 (1) (1) 0 (6) (6) 0 5 6 Compara
Slide 19: Relevant References: Crude Oil
Relevant References: Crude Oil Price continues to increase in line with demand for refined products Brent Crude Oil Price US$/Bbl 120 99 100 80 71 64 65 60 52 54 44 42 40 20 0 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 20: Relevant References: Paraxylene
Relevant References: Paraxylene Px prices increased by 12% largely in line with Crude Oil price (+13%) US$/Ton NA Px Contract Price 2,000 1,708 1,635 1,641 1,500 1,382 +12% 1,174 1,165 1,077 992 954 955 996 1,000 937 891 876 876 658 685 590 500 0 2011 2012 2013 2014 2015 2016 2017 2018 1Q 2Q 3Q 4Q 1
Slide 21: Relevant References: Propylene
Relevant References: Propylene PGP contract prices have remained high as demand strength has continued NA Propylene Contract Price (PGP) cpp -8% 80 76 71 73 70 69 67 60 60 54 50 45 39 41 40 37 34 35 31 30 26 20 10 0 11 12 13 14 15 16 17 18 19 1Q 2Q 3Q 4Q 1Q 2Q 2020 2021 22
Slide 22: For Additional Information
For Additional Information Email: IR@alpek.com / Phone: +52 (818) 748-1146 Alejandro • 10 Years at Alfa/Alpek Elizondo • Previously held roles as Director of Logistics & Procurement at Indelpro, Director of Energy Markets at IRO Alfa, and Project Leader at The Boston Consulting Group • BS in Industr
Slide 23: 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 24: Second Quarter 2021 Earnings Webcast
SECOND QUARTER 2021 EARNINGS WEBCAST