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 — Q3 2022 Earnings Presentation
23 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Oct 20, 2022
Slide 1: Third Quarter 2022 Earnings Webcast
THIRD QUARTER 2022 EARNINGS WEBCAST
Slide 2: Today's Speakers
TODAY’S SPEAKERS JOSÉ DE JESÚS VALDEZ JOSÉ CARLOS PONS ANTÓN FERNÁNDEZ CEO CFO IRO 3
Slide 3: Topics for Today's Webcast
TOPICS FOR TODAY’S WEBCAST I. Financial Performance II. Product Circularity III. Outlook 4
Slide 4: Integrated PET Margins
INTEGRATED PET MARGINS Asian Margins | Px / MEG to PET (US$/Ton) China -2% 431 420 410 400 382 356 • Asian reference margins averaged 330 306 310 318 US$400/Ton, surpassing 266 275 expectations for this quarter 250 242 323 223 260 328 307 302 PET 262 184 227 249 228 • Asia-China spread decreased to
Slide 5: Polypropylene Margins
POLYPROPYLENE MARGINS NA Polypropylene Margins | PP to PGP (cpp) 52 47 47 -13% 39 38 • PP reference margins decreased to 34 32 34 cpp (-13% QoQ) mainly due to 25 lower demand towards quarter-end 22 21 22 and new capacity in North America 19 16 17 15 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Slide 6: 3Q22 Financial Highlights
3Q22 FINANCIAL HIGHLIGHTS • Volume increased to 1.36M tons (+8% QoQ), due mostly to incremental volume from the newly incorporated PET Sheet and Resin business • Highest ever Comparable EBITDA of US$424M (+15% QoQ) mainly due to incremental EBITDA from the new business and higher-than-expected margi
Slide 7: Volume Evolution
VOLUME EVOLUTION Quarterly Sales Volume (Ktons) +8% 1,359 1,260 1,201 1,195 1,216 246 • Overall quarterly volume increased 1,172 P&C 250 by 8% QoQ due mostly to 256 254 271 240 incremental volume from the new PET business • Polyester volume was 10% higher QoQ 1,114 Polyester 1,011 945 924 931 962 •
Slide 8: Feedstock Costs
FEEDSTOCK COSTS Crude Oil & Paraxylene NA Propylene Contract Price NA Px Brent Contract US$/Bbl US$/Ton cpp 140 2,400 90 Crude Oil (Brent) Px -12% 82 2,200 80 120 -18% 2,000 73 -23% • Brent crude oil price decreased 70 67 1,800 66 63 61 (-12% QoQ) due to a tighter 100 1,600 60 macroeconomic environm
Slide 9: EBITDA Breakdown
EBITDA BREAKDOWN 3Q22 EBITDA (US$M) +15% 424 4 • Comparable EBITDA of US$424M 369 -46 (+15% QoQ) 5 158 -70 306 • Polyester Comparable EBITDA of -2 4 Others US$261M (+20% QoQ) from strong 147 margins and volume 234 3 132 P&C • Record P&C Comparable EBITDA of 124 US$158M (+8% QoQ) 261 218 • Combined i
Slide 10: Free Cash Flow Generation
FREE CASH FLOW GENERATION Quarterly Free Cash Flow (US$M) 1,805 1,776 34 12 93 • Free Cash Flow of US-$6M in 3Q22 69 as EBITDA was offset primarily by 306 39 increased Net Working Capital and CAPEX 111 • Lower NWC impact in 3Q due mostly to lower raw material prices vs the previous quarter • CAPEX o
Slide 11: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times) 1,776 1,805 1,426 1,236 1,323 1,310 1,092 1,225 962 813 1,512 1,539 1.2 1.2 1.2 1,277 1.1 1.0 1,077 1,145 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 Comp. EBITDA 12
Slide 12: EPS Circularity
EPS CIRCULARITY 13
Slide 13: Outlook
OUTLOOK 14
Slide 14: Q&A
Q&A JOSÉ DE JESÚS VALDEZ JOSÉ CARLOS PONS CEO CFO 15
Slide 15: Appendix
APPENDIX
Slide 16: Extraordinary Effects Breakdown
EXTRAORDINARY EFFECTS BREAKDOWN 2022 2021 Delta M dls 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD 1Q 2Q 3Q YTD Reported EBITDA 456 507 306 1,270 324 273 279 876 132 234 27 393 Inventory Adjustment (63) (80) 70 (74) (63) (18) (22) (103) (0) (63) 92 30 Carry-forward (66) (73) 46 (93) (58) (29) (21) (109) (8) (43) 67 16
Slide 17: Relevant References | Crude Oil
RELEVANT REFERENCES | CRUDE OIL Prices decreased due to a tighter macroeconomic environment Brent Crude Oil Price US$/Bbl 140 120 103 100 80 71 70 64 60 54 44 42 40 20 0 2016 2017 2018 2019 2020 2021 2022 18
Slide 18: Relevant References | Paraxylene
RELEVANT REFERENCES | PARAXYLENE Px prices decreased 18%, in line with crude oil NA Px Contract Price (US$/Ton) -18% 1,837 1,505 1,301 1,174 1,033 1,066 1,069 954 996 876 876 891 658 685 590 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2020 2021 2022 19
Slide 19: Relevant References | Propylene
RELEVANT REFERENCES | PROPYLENE Started to decline gradually as demand weakened NA Propylene Contract Price | PGP (cpp) 82 73 -23% 67 66 63 61 54 45 47 39 41 34 35 31 26 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2020 2021 2022 20
Slide 20: Ocean Freight Prices
OCEAN FREIGHT PRICES Starting to gradually decline to previous levels Asia – USA Spot Ocean Freight Rate (US$K/Container) -18% 10.7 10.8 11.0 10.4 8.6 7.2 4.7 4.8 3.9 2.5 2.8 2.6 2.8 2.8 2.1 2016 2017 2018 2019 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2020 2021 2022 21 Note: Prices based on 20-foot containe
Slide 21: For Additional Information
FOR ADDITIONAL INFORMATION Email: IR@alpek.com | Phone: +52 (818) 748-1146 ANTÓN • 16 Years at Alfa/Alpek FERNÁNDEZ • Alpek IRO / Corporate Finance / ESG Director since 2022 • Previously held roles as VP of Administration & Strategic Planning at Indelpro, Commercial IRO Technology Manager at Alpek P
Slide 22: 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 23: Third Quarter 2022 Earnings Webcast
THIRD QUARTER 2022 EARNINGS WEBCAST