Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q2 2024 Earnings Presentation
31 slides from Grupo Rotoplas Sab De Cv's earnings presentation, August 2024
Slide 1: Corporate Presentation
Co Borate | Pr ai = il
Slide 2: Our Vision, Mission and Purpose
Our Vision Offer non-centralized Our Mission and sustainable water solutions, with relevant benefits for more and better our customers, water within the Rotoplas Way Our Purpose We exist to transform everyone’s quality of life For people to have by ensuring water is used to its fullest extent We are
Slide 3: Investment considerations
Investment QC] Our water management solutions considerations @) y) Clear structure for a sustainable future @) 3 Solid Financials O4 Water, a resource at risk
Slide 4: Our water management solutions
Froroplas = Our water OT management solutions
Slide 5: Key Messages
Corporate Presentation Key.Messages ( a Sustainable growth plan: double sales in 5 years Transformation story: Rotoplas significantly increased its ROIC in 2 years XY SI Upside potential Analyst Coverage GBM Buy $50.00 Signum / Punto Buy $39.00 Miranda Research Buy $44.00 BTG Pactual Neutral $29.00
Slide 6: Rotoplas' leadership in the industry
Corporate Presentation ing Rotoplas' leadership in.tt ind Leading products and services in a rapidly growing and high-impact industry. Storage Waterflow Improvement Treatment and recycling Financial Guidance 2025 2x sales (vs. 2020) EBITDA Margin 220% Net Debt / EBITDA $2.0x Double digit ROIC > WACC
Slide 7: Company history and milestones
corporate Presentation F f dad International expansion begins with the plant in Guatemala Rotoplas is born The first polyethylene in Mexico water tank is CTRSroptas. launched Rotoplas starts - . operating in Argentina 14 countries 18 plants +3,700 employees product lines Acquisition of Talsar in Arg
Slide 8: Our Products: Solutions for adapting to climate change
oe ; ; ; rotoplas: Our Products|. Solutions for adapting to climate change WATERFLOW IMPROVEMENT 4 |_| Instalamos c— BS confianza
Slide 9: Our Services: Climate change mitigation solutions
potop!as: Our Services |.Climate change mitigation solutions
Slide 10: Rotoplas' presence: portfolio by country
Corporate Presentation -Rotoplas’ presence __. Portfolio by country We provide an extensive array of products and services tailored to meet the unique requirements identified in each market where we operate. Aorop!?5.- Explore 6 7 6 o PRODUCTS — Srotage ° Frotopl2s- Foroplas. FRotopl2s: Frotoplas 5
Slide 11: Sustainable Growth Plan 2025
Corporate Presentation Gz plas. Sustainable Growth Plan 2025 pete 2025 Guidance @ 2x Sales @ EBITDA Margin 220% Net Debt / EBITDA $2.0x PRODUCTS 1S — 17% 20 - 22% wy Mexico 1S — 17% 15-17% Bouse eligi WelS > WSs Argentina 12 - 14% 12 - 14% ; USA' 24 — 26% margin > 5% CLT DATES Other 16 - 18% 16 — 19
Slide 12: Addressable market and key initiatives for 2024
| | Total Addressable Market | | Served Available Market || Key Initiatives for 2024 bebbia. - 3 M households (82C) -1M institutional clients (B28) - 500 M USD annual recurring revenues - Renewing purifiers portfolio - Training technicians for enhanced service quality - Implementing a Programmatic M
Slide 13: 360º Value generation
Corporate Presentation 0 360° stakeholder ; Sere impact : = ail — poaitabilty and collection Y ww - it STAKEHOLDER 1) 360° MPacy /, ——> Employees 5 Clients and users —> Suppliers —> Investors and financial community —> Authorities — Academia Corporate governance and ethics Quality of life Pe of user
Slide 14: Results & Goals: ESG
Corporate Presentation Results & Goals|.ESG___ @ lroSer Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) @lanert CO, Intensity - Scope 1 and Scope 2 - per ton of processed resin m3 of purified water using our solutions Olerrle People impacted with access to sanitation (cumulat
Slide 15: Clear structure for a sustainable future
Clear structure fora sustainable future Froroplas..
Slide 16: • • ° • • • • ∼ • • • • • •
• • ° • • • • ∼ • • • • • • • • • • • • • • • • •
Slide 17: Our board of directors
Corporate Presentation Our board of directors Transparency 53% independent mem! Div 6 international Innovation presented b different generations Equality Gender equality on the Board, Board members backgrounds & more than 500 ye: nbined rience 4 Ordinary Meetingsannually Board of Directors 8/IS Comp
Slide 18: Resource allocation
Corporate Presentation Resource allocation for: 6 Organic Inorganic growth Share Dividend Debt growth Coherence matrix approach buybacks Payment Payment Process: > Project Evaluation IRR > WACC Validation and Quarterly status proposal approval update Supported by a Capital Allocation Committee CAPEX
Slide 19: Solid Financials
Froroplas = O ‘3 i
Slide 20: Business Model Resilience
Corporate Presentation Business Model Resilience MXN mm CAGR: 11.6% 6.8x | 12,774 12,146 |2,036 10,915 8, 7.8597,790 6551 6,660 46805399 58,7005, 353 1 2,415 2,6597049 1,769 1,980 2,161 2006 2007 2008 2009 2010 2011 2012 2013 2014 2018 2016 2017 2018 2019 2020 2021 2022 2023 LIM CAGR: 12.5% TIX y 78
Slide 21: 6M24 Results
Corporate Presentation /poroplas MXN mm By Country By Solution Sales EBITDA CAPEX Sales EBITDA ce m™ Mexico @ Products m Argentina m Services $5,639 = USA $5,639 = Other 95% 6M24 6M23 A %/bps Net sales $639 S750 (2%) Cash Conversion Cycle Cost of Sales 2,898 3,075 (6%) AT days ra (2,742 || 2,674 ||
Slide 22: 6M24 Results: Debt maturity and balance sheet
Corporate Presentation. 6M24 Results MXN mm Debt Maturity Profile Strong Balance Sheet to support growth June 2024 $3,999 Cash and Cash Equivalents Other Asssets 12,819 TotalAssets == |_*13,484_ Debt 4,332 Other Liabilities 2,871 $333 Total Liabilities =| 7,204 | ———— Equit 6,281 208 von Liabities +
Slide 23: ROIC | Sustainable value creation
ROIC | Sustainable value creation jo pb potop!s: ROIC decreased by 490 basis points compared to 2Q23 due to: Results in Argentina Higher effective tax rate in Mexico and Central America 23
Slide 24: Peer valuation and share performance
Corporate Presentation R FLUIDRA SA 25.0% 37.9% 12.9% 4.7% RELIANCE WORLDWI _ 15.8% 214% 98x 8.8% FRANKLIN ELEC CO 12.7% 174% ‘13.4X TORO CO 125% NO% ‘13.4% VALMONT INDS 9.6% 9.6% 12.8x COWAY CO LTD 8.9% 10.4% 3.8x BADGER METER INC 7.0% 7.6% 31.0x GORMAN-RUPP CO 6.6% 1.8% 19x WATTS WATER TE-A 6.3% 1
Slide 25: 2024 Guidance
cor ato A soplas... 2024 Guidance FRotop* Sales 0% - 5% EBITDA Margin 17% - 18% Net Debt / EBITDA < 2.0x ROIC
Slide 26: Water, a resource at risk
Water a resource at risk
Slide 27: What you need to know
Corporate Presentation /potoplas-. What you need to know: ) + 75% of our planet is covered by water, but less than 1% is usable. + The climate and water crises are interconnected: for every +1°C, there is a 20% + Water demand has increased by 40% over the last 40 years and is expected to reduction i
Slide 28: Water situation in Mexico
Corporate Presentation. Water Situati Mexi General water risk! $049 49 4348 47 46 45 46 46 45 aa : AS 42 44 a7 3.4 3.3 33 3.2 : : 2 3.2 3.1 3.079 4in relation to the percentage of consumption over the total water available in a year. 2UN Global Land Outlook Source: World Resources Institute (WRI) Ge
Slide 29: Evolution of Water Costs: USA
Corporate Presentation. Evolution of WaterCosts |. USA Trends in consumer prices (CPI) for utilities —~ Water & Sewer (1953) ~~~ Postage (1935) Water is the fastest rising utility cost ~~ CPI (1913, 1983=100) —~ Electricity (1913) = Natural Gas (1935) => Tel. Services (1997=100) 40) Source: Institut
Slide 30: Why Mexico? Opportunities for Rotoplas
Corporate Presentation Froroplas- Companies are beginning to move their production chain to Mexico, and this represents a great opportunity for our market. Why Mexico? | | Opportunities for Rotoplas * Location We have 14 manufacturing plants for products in Mexico and a robust service platform that
Slide 31: Thank you! Investor Relations contacts
Corporate Presentation Thank you! = INVESTOR RELATIONS CONTACTS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com Institutional e-mail agua@rotoplas.com https://rotoplas.com/investors/