Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — 2Q23 Earnings Presentation
32 slides from Grupo Rotoplas Sab De Cv's earnings presentation, August 2023
Slide 1: Grupo Rotoplas Corporate Presentation
6M re Grupo Rotoplas S.A.B. de CV. Corporate Presentation
Slide 2: Our water management solutions
Our water management solutions Clear structure for a sustainable future Solid Financials Water, a resource at risk Mission | for people to have more and better water Vision | Offer non-centralized and sustainable water solutions, with relevant benefits for our customers, within the Rotoplas Way
Slide 3: Our water management solutions
_ ~ Our water '@ | ad management . solutions C)
Slide 4: Key Messages
Corporate Presentation Key Messages Rotoplas pays dividends annually, despite being a growing company Sustainable growth plan: double sales in 5 yea rs Transformation story: Rotoplas significantly increased its ROIC in 2 years Clear climate change and diversity targets Leader in sustainability and i
Slide 5: Mission, vision and water challenges
0108 | For people to have | Offer non-centralized more and better water and sustainable water solutions, with relevant benefits for our customers, within the Rotoplas Way We are currently at a crucial point in addressing water-related problems. 40% deficit between water 36 billion USD to renew suppl
Slide 6: Leveraging Rotoplas' leadership in the water industry
Leveraging Rotoplas' leadership in the|water industry Leading products and services in a rapidly Financial Guidance 2025 growing and high-impact industry. 2x sales (vs. 2020) e@ EBITDA Margin 220% Waterflow @ Storage Net Debt / EBITDA $2.0x Double digit ROIC > WACC Sustainability Guidance 2025 a> Fe
Slide 7: A story motivated by water
A story motivated by water 14 countries International expansion begins with the plant Rotoplas starts Rotoplas is born The first polyethylene in Mexico water tank is in Guatemala operating in Argentina C3RBroptas. launched 18 plants r 0) sti © 5 27 product lines Acquisition of Talsar . Rotoplas is l
Slide 8: Our Products | Solutions for adapting to climate change
Corporate Presentation fporoplas:. Our Products | Solutions for adapting to climate change Value Traditional Business @ Leading brands (a) Strong market share C1) Strong cash flow @ Steady EBITDA - YTD $1,217 re) Dividend payment \ ‘gate | SENORIAL “fotoplaS- ‘ovsctsyocoe Calor que perdura
Slide 9: Our Services | Climate change mitigation solutions
Corporate Presentation Our Services | Climate change mitigation|solutions Treatment & recycling rsa Rotoplas servicios de agua Acuantia. /poroplas a Growth New Businesses @ nwestment phase: negative cash flow @ Negative EBITDA - YTD ($110) @strong earnings growth potential Ne
Slide 10: Rotoplas' presence
Corporate Presentation Rotoplas’ presence I Mature market IB Expanding market Mi Emerging market © Plan PP Explore (— ) an Storage | Acuantia. [se | Apotoplas | Apotoplas | /poto plas XN J Ee 8 (— S S EE s Instalamas » a Waterflow tubopi tubops" /potop!4 confianza 2. J af = >) Improvement z= | Apoto
Slide 11: What's next for Rotoplas?
What's next for Rotoplas? Guidance 2025 2x Sales Double digit ROIC > WACC Growth Avenues ss Water as a Service Platform Mexico & Brazil bebbia. /Rotoplas: SS ACUANTIA United States Acuantia. & ss Launching of new solutions dase ACuantia. iS Synergies between operations ws D&A Platforms
Slide 12: What's next for Rotoplas? | 2025 expected growth
Corporate Presentation What's next for Rotoplas? | 2025 expected growth PRODUCTS 12 -14% Mexico 10-12% Argentina 12 - 14% USA* 29 - 31% Other 15-17% SERVICES 30 - 32%” TOTAL 14 - 15% 20 - 22% 18 - 20% 14 - 16% Margin > 7% 17-19% Margin > 0% 25-27% “USA, includes the e-commerce retail business and th
Slide 13: New Businesses Growth and Market Opportunity
Corporat ion New Businesses Growth | | Market Opportunity BB Main initiatives 2023 /rotop! bebbia. - 3 M households (82C) -1M institutional clients (B28) - 500 M USD annual recurring revenues - Process automation - Development of digital platform - Optimization of field services - Grow B2B Acuantia.
Slide 14: 360° Value | 2021-2025 Sustainability Strategy
Corporate Presentation 360° Value | 2021-2025 Sustainability Strategy 0 360° stakeholder ; _ SOO YALE impact | poaitabilty and collection 0° STAKEHOLDER Iajpg \ a 7 ——> Employees \ 5 Clients and users —> Suppliers | — Investors and financial Boosting talent community } > Authorities } / 0) — Academi
Slide 15: Results & Goals | ESG
Corporate Presentation Results & Goals| ESG @Wrofa Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) Olaner CO, Intensity - Scope 1 and Scope 2 — per ton of processed resin m? of purified water using our solutions Olerple People impacted with access to sanitation (cumulative) W
Slide 16: Nearshoring | Opportunities in the Water Industry
Corporate Presentation Nearshoring | Opportunities in the Water Industry fporoplas:. Companies are beginning to move their production chain to Mexico, and this represents a great opportunity for our market. Why Mexico? | 2 | * Location + Trade openness | 14 free trade agreements with 5O countries +
Slide 17: Clear structure for a sustainable future
Clear structure for a sustainable future
Slide 18: Flow has become the daily way of operating within Rotoplas
Flow has become the daily way of operating within Rotoplas. • • • ° • • • • ∼ • • • • • • • • • • • • • • • •
Slide 19: Corporate structure | Board & Top Management
ee Apotopl9s: Corporate structure | Board & Top Management Our board of directors Transpar independent mem internationaln rent generations CEO Equality Gender equality on the Board, omen VP of North and Board members VP of H and S VP Individual Solutions and Services Latam an Capital tainability Cen
Slide 20: Discipline in Capital Allocation
Corporate Presentation, Discipline in Capital Allocation Resource allocation for: a ® Organic growth Inorganic growth Share buybacks Dividend Payment Debt Payment Coherence matrix approach. Process: - e YS Pees yh wt Project proposal Evaluation IRR > WACC Validation and Quarterly status approval upd
Slide 21: Solid Financials
= Solid Financials
Slide 22: Business Model Resilience
Corporate Presentation Business Model Resilience MXN mm CAGR: 12.1% v 7.0x 12774) ay 10,915 n 8.644 7 uu 7,859 7,790 Continu grow =] 6.551 6,660 a 4,680 2° $700 5,383 uble-digit margins srg 1980 2.161 TIL il | | | Strong Manageme: 2006 2007 2008 2009 2010 20! 2012 2013 2014 2015 2016 2017 2018 2019
Slide 23: 6M23 Results
/potoplas:. 6M23 Results Rot MXN mm By country By solution EBITDA CAPEX Sales EBITDA = Mexico @ Products m Argentina m Services = USA $5,750 = Other 6M23 6M22 A %/bps Net sales 3.750 6,107 (6%) Cash Conversion Cycle Cost of Sales 3,075 3,583 (14%) z 70 days 2 47% 41% 320 pb Inventory Days 3 (ees aa
Slide 24: 6M23 Results: Debt Maturity and Balance Sheet
corporate earaion /potoplas-. 6M23 Results MXN mm Debt Maturity Profile Strong Balance Sheet to support growth June 2023 $4,007 Cash and Cash Equivalents $180 million working Other Asssets 11,995 capital loan TotalAssets = 12.5 $4 billion from the Debt 4187 issuance of our Other Liabilities 2550 sus
Slide 25: ROIC-WACC spread exceeds earnings guidance
ROIC-WACC spread exceeds earnings guidance
Slide 26: AGUA* peer comparison and dividend history
Corp Preseaton /potoplas-. AGUA* peer NS AGUA* vs. IPC (Mexbo) Sales \ Rexnord 1% Watts 4% ee Veolia 5% Xylem A% Coway 5% 100%, fl Flowserve 3% 1% Evoqua 4% 5% Pentair 4% 5% Mueller 3% 1% Primo 4% 5% Lindsay Corp 5% 6% Hayward 7% 13% Fluidra 3% 3% Toro 5% 10% Badger Meter 1% 1% Ecolab 6% 1% Franklin
Slide 27: Guidance 2023
Guidance 2023
Slide 28: Water a resource at risk
Water a resource at risk /potoplas:
Slide 29: Our water supply is at risk, requiring decentralized water solutions
Our water supply is at risk, requiring decentralized water solutions Imbalance in water distribution ] 6) countries control 6BO%or the global fresh water supply n”nr™ anno Across the world, water supply & sewer systems are 40% to 60-80 decrease in @ years atl renewable water . er capita in the last
Slide 30: Water situation in Mexico
Corporate Presentation Water situation in Mexico | 8 General water risk Americal General water risk! Country Ranking Risk Mexico 24 3.86 Guatemala 87 2.36 Peru 66 2.05 50 49 USA vA 185 49 48 ag a7 46 46 46 46 El Salvador 78 166 “84493 a2 gy Argentina 92 131 37 Costa Rica 107 0.92 343333 32 49 Brazil
Slide 31: Water cost evolution | USA
Corporate Presentation Water cost evolution | USA Trends in consumer prices (CPI) for utilities higan State University Water & Sewer (1953) Postage (1935) CPI (1913, 1983=100) Electricity (1913) Natural Gas (1935) Tel. Services (1997=100) Water is the fastest rising utility cost
Slide 32: Investor Relations
INVESTOR RELATIONS Maria Fernanda Escobar Mariana Fernandez mfescobar@rotoplas.com mfernandez@rotoplas.com Institutional e-mail agua@rotoplas.com https://rotoplas.com/inversionistas
Grupo Rotoplas S.A.B. de C.V. — 2Q23 Earnings Presentation on 6ix