Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q4 2019 Earnings Presentation
21 slides from Grupo Rotoplas Sab De Cv's earnings presentation, Feb 13, 2020
Slide 1: Grupo Rotoplas Earnings Results Conference Call 4Q19
Grupo Rotoplas (AGUA*) Earnings Results Conference Call 4Q19 February 13th, 2020 1
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
Speakers Carlos Rojas Aboumrad CEO Mario Romero Orozco CFO 3
Slide 4: Flow, a roadmap to fulfill our mission
Flow, a roadmap to fulfill our mission For people to have more and better water ROIC = WACC • ROIC improved by 250 bp • Cash Conversion Cycle shortened by 14 days 4
Slide 5: Second reopening | AGUA 17-2X
Second reopening | AGUA 17-2X What are Sustainable Eligible Projects Bonds? Projects which offer viable and basic infrastructure to provide clean water and sanitation to communities. Bonds that finance projects with a social and environmental focus and are aligned with the UN’s Sustainable Developme
Slide 6: Working Capital
Working Capital 2,026 2,135 Million MXN 1,989 1,942 1,651 14 day improvement due to: • Negotiation with suppliers • Better accounts receivable collection • Efficient inventory management CCC (days)
Slide 7: Fulfillment of guidance 2019
Fulfillment of guidance 2019 Guidance Reported Sales growth Single digit 4.0% EBITDA Margin 16-17% 17.5% Net Debt / EBITDA < 2.0x 0.8x
Slide 8: Flow | Transformational Program
Flow | Transformational Program Profitability of Growth initiatives Improve Organizational Health current portfolio • Revenue levers • Improve quality and execution on growth • Management of organizational opportunities change • Cost levers • Clear set of opportunities: • Project diligence and accou
Slide 9: Financial Highlights
Apotoplas: Financial Highlights
Slide 10: Sales & EBITDA | Mexico
Sales & EBITDA | Mexico Mexico • Business model resilience • Better traction in service platform • 2019 EBITDA margin increased by 240 bp reaching 24.7% 4Q19 2019 Δ Sales 5.4% -1.1% Δ EBITDA 13.4% 9.4%
Slide 11: Mexico | Water as a service platform
Mexico | Water as a service platform Million MXN Sytesa – Wastewater treatment and recycling plants WWTP WWTP equivalent unit: • The portfolio grew by 23% • + 99 additional WWTP equivalent units in 2019 $7 million contract • +30 WWTP under construction 7 years • 11 new clients in different industrie
Slide 12: Sales & EBITDA | Argentina
Sales & EBITDA | Argentina Million MXN Market Share Storage Water flow Improvement (water heaters) 4Q19 2019 Δ Sales -6.3% 21.8% Δ EBITDA 14.4% 15.5%
Slide 13: Sales & EBITDA | Other
Sales & EBITDA | Other USA • Consolidation of the strategy to focus on e-commerce platform Central America • Technological update of the platform & strengthening of the commercial team • Country-specific commercial policies • Multichannel strategy (websites, call • Commercial strategy focused on the
Slide 14: Portfolio Mix
Portfolio Mix • Good traction in the water as 4Q19 4Q18 a service platform • WWTP revenue recognition • Continued positive trend in Bebbia (2x purification units)
Slide 15: Financial Highlights
Financial Highlights Million MXN 1 . For comparison purposes, these figures vary from the previously-reported in 2018. These now exclude the manufacturing operations in the United States of America as they have been considered as discontinued due to its sale in July 2019. This adjustment subtracts P
Slide 16: Current Leverage
Current Leverage Million MXN Balance Sheet 2019 2018 Var (%) Cash and cash equivalents 1,848 1,050 75.9% Total Debt 2,935 2,923 0.4% Net Debt 1,087 1,873 (41.9%) Net Debt / EBITDA ratio Net Debt / Adjusted EBITDA 0.8 x 1.4 x (0.7) x decreased from 1.4x to 0.8x CAPEX Leverage remains within the Milli
Slide 17: ROIC vs. Cost of Capital
ROIC vs. Cost of Capital ROIC increased by 250 bp compared to December 2018. Rotoplas faced an inflection point since 3Q19.
Slide 18: Climate change strategy
Climate change strategy Understanding of the risks and business opportunities posed by climate change for Grupo Rotoplas Approach: • Mitigation – emissions reduction • Adaptability –reduce vulnerability • Opportunities – products and services
Slide 19: 2020 Guidance
2020 Guidance Guidance Sales growth ≥ 10% EBITDA Margin ≥ 18% Net Debt / EBITDA ≥ 2.0X ROIC ≥ WACC
Slide 20: Q&A
Q&A 20
Slide 21: Thank you
rotop!as: rotoplas.com Rotoplas §J [py Rotoplas Mexico {jj Rotoplas oy 01800 506 3000