Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q1 2021 Earnings Presentation
43 slides from Grupo Rotoplas Sab De Cv's earnings presentation, 2021
Slide 1: Corporate Presentation First Quarter 2021
Grupo Rotoplas S.A.B. de CY. Corporate Presentation First Quarter 2021
Slide 2: Forward-looking statements
Apotopls-. Forward-looking statements The contents of this presentation, including text, graphics, images and other materials (“Content”), here contained, is for general information purposes only. While we endeavor to keep the information up to date and correct, Grupo Rotoplas, S.A.B. de C.V., makes
Slide 3: Presence and focus on 360° value creation
rea tter water @ Presence sy 7... Pe ~ @ Focused on 360° value creation
Slide 4: Investment Considerations
Apotopls-. Investment Considerations ] WATER A nascent industry of opportunities PROVIDING SOLUTIONS Market leaders WHERE WE ARE GOING Growth and value opportunities Dow J A STRONG FINANCIALS Sustainability Indices Ss ustainab le foc us In Collaboration with RobecoSAM «@
Slide 5: Water: a nascent industry of opportunities
Corporate Presentation WATER A nascent industry of opportunities
Slide 6: Water Demand and Supply
Corporate Presentation Water Demand Population Growth 2020 2050 Rural 3.0B 3.0B Total 7.0B 10.0B The demand for water for 2.5x faster than the population NoY) Wd General population will grow by an average of 77 million people in the next 20 years Source: Water Facts and Trends. UN Water. Water Study
Slide 7: Water Challenges and Market Size & Dynamics
Corporate Presentation Water Challenges for 2 4 billion people worldwide live without access to adequate sanitation services DoBe DoBe DoBe DoBe DoBe ° ° a) aQ Humanity 2/3 of the world’s population live in areas that have water scarcity at least once a month DUT Market Size & Dynamics $ USD 780 Bil
Slide 8: Case Study — Mexico City
Corporate Presentation Case Study — Mexico City io? “Nowadays, 40% of inhabitants have problems dW regarding water access and quality” Poor quality ie. Nowadays in Tlalpan neighborhood the local government spends US$7M annually in water trucks CDMxX International Airport * The city's water system pr
Slide 9: Water situation in Mexico
Corporate Presentation Zc Water situation in Mexico | | /potoplas:. Country Ranking Risk Mexico 24 3.86 Guatemala 57 2.36 + J Peru 66 208 General water risk 'In relation to USA 7 1.85 the percentage El Salvador 78 1.66 of consumption Argentina 92 1.31 tt l Costa Rica 107 0.92 5.0 4.9 49 OUEP UN Uele
Slide 10: Providing Solutions: Market leaders
Corporate Presentation PROVIDING SOLUTIONS Market leaders
Slide 11: The Company
Corporate Presentation Za toplas:.- The Company ‘Roto yas: => 1994 4Q20 Storage Products Water Market Leader | country 14 countries (14x)! 800 direct clients 53,500+ points of service 500 employees 3,400+ employees (7x)! 3,000 points of sale 29,000+ points of sale (/Ox)! 2 product lines 27 product l
Slide 12: Key metrics 2014 — LTM21
Key metrics 2014 — LTM21 $6,552 $9152 A 40% Sales 40% >5% A -35% Government sales | - (O) 53,000+ A53,000+ Treatment & purification units $860 & $1,688 A 96% EBITDA 2,703 3,410 A707 Employees | 13% ren 4% AI% Client concentration a /potoplas.. 13.1% (2) 18.4% AS30pb EBITDA Margin 23,000+ 29,000+ A 6
Slide 13: Business Model | Decentralized Water Solutions
Corporate Presentation Business Model | Decentralized Water Solutions B2D ecommerce B2C Residential Commercial Schools B2B / B2C B2B: Business to Business B2C: Business to Consumer B2D: Business to Distributor Through our solutions, we become allies to our customers in order to be more sustainable e
Slide 14: Products and services across the water cycle
Our products and services are present throughout the water cycle. Availability and water harvesting Provisioning to people, industries and communities from the water source: superficial / shallow Reinsertion to the environment Reuse (oO) EU Treatment Pollutants removal from the wastewater Boy Potabi
Slide 15: Portfolio
Corporate Presentation Ze soplas Portfolio /potoplas:.. PRODUCTS SERVICES nie) Water treatment and recycling Wastewater Treatment Plants (WWTP), STORAGE WATER FLOW IMPROVEMENT SELF-SUSTAINABLE Post industrial and Pre- consumption water Water tanks Piping Heaters Rural rainwater Water Purification Pl
Slide 16: Favorable Growth Drivers | Tailwinds
Corporate Presentation y Favorable Growth Drivers | Tailwinds /potop!5:. Storage * Rapid urban growth = supply interruption > higher demand for water storage products * Water demand > centralized system capacity (old infrastructure and poor city planning) * Growing trend of circular economy - use of
Slide 17: Competitive Advantages
Corporate Presentation Competitive Advantages “Value BRAND RECOGNITION - Quality - Social Responsibility - Over 29,000 points of sale in America - Over 53,500 points of DISTRIBUTION treatment, recycling and [RW pedal sa purification NETWORK Source: Rotoplas. Information as of December 2020, = /rotop
Slide 18: ESG focus
Corporate Presentation ESG focus ARQ +28,300 hrs! training collaborators on human rights, processes, health and safety, among other topics +9,500! plumbers trained { CORPORATE GOVERNANCE pS SOCIAL feXe) a. BOINS +1,153,0002 4 ROCA children benefited ENVIRONMENTAL :* SUSTAINABILITY , MODEL +70% energ
Slide 19: 360° Value | 2021-2025 Sustainability Strategy
Corporate Presentation 360° Value | 2021-2025 Sustainability Strategy 360° stakeholder impact 360° VALUE _—_—_®—~_ ae VY jas. / potop!4?:. __ pualtaility and collection a 360° sTAK! ER Macy ——> Employees Boosting talent Corporate governance > Clients and users amelie ——» Suppliers @OE) ) ——> Investo
Slide 20: Climate Change Strategy
Corporate Presentation Climate Change Strategy Seeks to mitigate risks and capitalize on opportunities raised by climate change for Rotoplas and its stakeholders « S& ae - /potop!5:. Rotoplas measures its GHG emissions scope 1,2,3 as well as its water footprint Mitigation Reducing Greenhouse Gas Emi
Slide 21: Climate Change Strategy
Corporate Presentation - Climate Change Strategy /potop!5:. « Renewable energy supply - solar panels - Main initiatives| energy & materials circularity oS Ba Incorporation of recycled resins (own and third party) y= +--+ Development of blow-molding process for the manufacture of water tanks, more ef
Slide 22: Sustainability Organizational Structure
z Sustainability Organizational Structure potoplas.. It has a multidisciplinary structure and reports to the Board of Directors through the Corporate Practices Committee T Human F Investor Government Syecea Capital Quelisy Relations Relations Sareea) Institutional Purchasing Marketing Legal Innovati
Slide 23: Best Corporate Governance Practices
Corporate Presentation 3) ,; S.. Best Corporate Governance Practices otop!as: Board of Directors Our board of directors: Audit Compensation Committee Transparency == 3> 54% Independent Members Diversity == > 5 international Board Members Innovation = > Represented by 4 different generations Equality
Slide 24: Where We Are Going: Growth and value opportunities
Corporate Presentation Growth and value 3 WHERE WE ARE GOING opportunities |
Slide 25: Flow | Transformational program for a sustainable growth
Corporate Presentation Flow | Transformational program for a sustainable growth © What is it? Itisan organizational transformation program. What is it for? To seek sustainable growth and the creation of economic, social, and environmental value When did it start? It was proposed in June 2019 and the
Slide 26: Flow | Transformation Program
Corporate Presentation Flow | Transformation Program Enhance performance of current portfolio * Revenue levers 1) Price & volume optimization * Cost levers 1) Procurement of materials 2) Manufacturing efficiency 3) Distribution costs optimization * Working capital levers 1) Inventory levels optimiza
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Slide 28: Strategy per country or region
Corporate Presentation Strategy per country or region 7 /potoplas:. f- ‘\ a e@ MEXICO Feororl2s: 1) PERU Atop. * Grow service platform bebbia * Maintain leadership in storage and improvement * Maintain products leadership _ * Develop and grow water flow and control segment * Explore new business opp
Slide 29: Improve discipline in Capital Allocation
Corporate Presentation Improve discipline in Capital Allocation Resource allocation for: bs 5 Inorganic growth Coherence matrix approach Organic growth Share buybacks /potop!as:. Ke) Dividend Payment Debt Payment Process: G9 —-— P—@s Project proposal Evaluation IRR > WACC va Saeed alA Q raid Validat
Slide 30: Flow | Transformation results
Corporate Presentation y Flow | Transformation results /potop!5:. >1,500 involved l Guidance Results EMPIOYees 2020 2020 >350 Sales > 10% 11.0% Y Fully executed initiatives Adj. EBITDA Margin > 18% 18.2% Y . >20 Net Debt / Adj. EBITDA < Ox 0.6x 4 Launching of new solutions P| ROIC 2 WACC (10.0%) 12.
Slide 31: FLOW 1Q21
Corporate Presentation FLOW 1Q2]1 > Ps. 414 million additional sales > Ps. 100 million contributed To EBITDA 6 new solutions launched >40 fully executed initiatives 14.8% >10.5% ROIC WACC v > Ps. 59 million CapEx related to Flow Initiatives 34-day reduction in cash conversion cycle >8% Increase in A
Slide 32: FLOW | Transformation
Corporate Presentation FLOW | Transformation y /potoplas:. _ —=2022-2025 _— 2021 2020 2019 == a + Plan design * Construction of machinery * Execution of initiatives * Successful transformation * Economic value creation Demonstrate sustainability of the transformation Maintain pace of creation and ex
Slide 33: What's next for Flow?
Corporate Presentation What's next for Flow? 2025 Guidance — 2x Sales — Adj. EBITDA Margin 220% — Net Debt / Adj. EBITDA. < 2.0x — Double digit ROIC > WACC (20%'s Neighborhood) ( Growth Avenues 6) Water-as-a-service Platform Mexico & Brazil bebbia. Sytesas rieggo. C} ACUANTIA United States & PLASTIC
Slide 34: 2025 | Expected Growth
Corporate Presentation y /potop!9s:. 2025 | Expected Growth 1M _9, revenue N iS) —Adj. EBITDA Margin >20% N Growth Revenues 2025 CAGR 20-25 - Services Revenue Adj. EBITDA 15% PRODUCTS 12-14% 12 -14% Mexico 8 -10% 9-11% Product: Argentina 5-7% 5-7% 85% USA 29 - 31% 44 - 46% Other 22 - 24% 22 - 24% Ot
Slide 35: 2025 | Strategy
2025 | Strategy 1, FLOW Zz /potoplas. 470 Initiatives with approved business case $5.8 bn Incremental sales $3.1 bn Incremental Adj. EBITDA 60% Successs rate 2. THINGS TO Flow implementation costs ~$75 mm (6 quarters) CONSIDER CapEx 5% of sales Government sales < 10%. 3. STRATEGY A a >) 2° Grow serv
Slide 36: Guidance 2021
Corporate Presentation Guidance 2021 /potoplas:. — Sales growth 210% — Adj. EBITDA Margin = 19% — Net Debt / Adj. EBITDA s 2.0x — ROIC = wacc + 100 bp
Slide 37: Rotoplas Commitments
Corporate Presentation /potoplas:. — To being driven by out Company’s purpose; best serving our customers and communities — To ESG best practices, in line with our stakeholders’ interests — To creating value for our shareholders through sustainable growth ROTOPLAS COMMITMENTS — To promoting society’
Slide 38: Strong Financials
4 STRONG FINANCIALS With a sustainable focus
Slide 39: Business Model Resilience
Corporate Presentation Business Model Resilience 1) Continuous growth ()Double digit margins (0)Strong Management * Mexico — 41 years * Central America — 23 years * Peru — 21 years * Argentina - 2] years * Brazil — 20 years * USA-— 5 years y /potoplas:. Sales Ro ner? 5.2x 5 v CAGR: 11.6% 9,152 8,644
Slide 40: Results
Corporate Presentation Ze soplas.. 1 21 Results /potop!* r 4 = Mexico Sales per EBITDA per CAPEX per | 6% | = Argentina Country $2,434 Couneey $473 Country x. = USA = Other 1Q21 1Q20 A %/bp . Net Sales [2434 [1926 ]| 76%] cast Cycle 7 COGS [ 1,428 || 1,083 || 32%| y 5 [1,006 |[ 843 || 19% | @ Invent
Slide 41: Sound Financials
Corporate Presentation Sound Financials MXN mm Debt Maturity Profile $4,000 $4 billion from the issuance of our sustainable bond 6 AGUA 17-2X eet $52 $55 2021 2023 2027 Interest coverage* 7.2x 5.7x 5A , L 4.6x | 2017 2018 2019 2020 LTM “Los gastos financieros utilizados para el calculo consideran lo
Slide 42: ROIC vs Cost of Capital
Corporate Presentation ROIC vs Cost of Capital 23.3% IPO . Improvement in ROIC throug | Flow transformational program: I 174% Greater discipline in Capital Allocation (Control Tower). I I 3.3% I manufacturing process. I ar . 12.3% Strict discipline on spending. 71% > 9.8% | I I I I I I TPIT EO noooe
Slide 43: Thank you! Investor Relations
Corporate Presentation /potopl?5-. Thank you! INVESTOR RELATIONS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com
Grupo Rotoplas S.A.B. de C.V. — Q1 2021 Earnings Presentation on 6ix