Orbia Advance Corp. Sab De Cv · BMV:ORBIA
Orbia Advance Corp. Sab De Cv — Orbia — Santander LatAm Conference (May 2024)
44 slides from Orbia Advance Corp. Sab De Cv's conference presentation, May 2024
Slide 1: Purpose-Driven. Customer-Focused. Addressing World Challenges.
Purpose-Driven. Customer-Focused. Addressing World Challenges. May 2024
Slide 2: Safe Harbor
Safe Harbor In addition to historical information, this presentation contains "forward-looking" statements that reflect management's expectations for the future. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally
Slide 3: Key Messages
Key Messages 01 Harnessing the power of material science and innovation to serve customer needs, address world challenges and provide sustainable solutions 02 Investing in profitable growth, leveraging our uniquely advantaged position to bring differentiated solutions to market 03 Maximizing the val
Slide 4: Global Imprint and Impact
Global Imprint and Impact Diversified global footprint Revenue1 by region Amsterdam, Netherlands 39% North America 19% South America Boston, MA USA Mexico City, Mexico $8.2B 10% Tel Aviv, 2023 Revenue1 Israel Asia 3% 30% Africa Europe ■ Operations and Commercial Activities 4 Global Strategic Hubs OR
Slide 5: Customer-Focused and Addressing World Challenges
Customer-Focused and Addressing World Challenges Enabling health and well-being worldwide Water & Food Security Decarbonization & Information Access Energy Transition & Connectivity Business Group Polymer Solutions + Building & Infrastructure Fluor & Energy Materials Connectivity Solutions + Precisi
Slide 6: Leading Positions Across all Businesses
Leading Positions Across all Businesses Decarbonization & Information Access Water & Food Security Energy Transition & Connectivity Polymer Building & Precision Fluor and Energy Connectivity Solutions Infrastructure Agriculture Materials Solutions Advantaged player in PVC Leading global provider of
Slide 7: Value Creation Strategy
Value Creation Strategy Three key focus areas: 1 Invest in profitable growth and innovation • To leverage our uniquely 2 Maximize the value of integration across Orbia and the value chains we participate in 3 Create shareholder value by being thoughtful stewards of capital and disciplined advantaged
Slide 8: Our Sustainability Strategy is embedded in our value chain
Our Sustainability Strategy is embedded in our value chain, enabling us to tackle three key global challenges At Orbia, sustainability is where strategy meets purpose, and purpose turns into action Through our operations, solutions and investments we contribute to tackling three key world challenges
Slide 9: Significant progress on our sustainability journey in 2023
In 2023, we made significant progress on our sustainability journey across our three strategic pillars Low-Impact and Sustainable Impact Resilient Operations Solutions Ventures ✓ Reduced by 28% our GHG Scope 1 & 2 Expanding portfolio of sustainable solutions: Three Orbia Venture’s portfolio companie
Slide 10: Continuously improving operational performance on path to Net Zero
Continuously improving on our operational performance while making progress on our path to Net Zero Our pathway1 is backed by science-based commitments 2025 2030 2050 Safety Waste Climate Change Climate Change Total Recordable Incident 100% of plants will Reduce scope 1 & 2 GHG Reduce scope 3 GHG Ac
Slide 11: Providing sustainable solutions for our customers
Providing sustainable solutions for our customers, supporting their sustainability journey and amplifying our impact Decarbonization & Energy Transition Water & Food Security Information Access & Connectivity 11
Slide 12: Innovation and Material Science are Key Competitive Advantages
Innovation and Material Science are Key Competitive Advantages >280 New products and Orbia Ventures services account for investing in Research and development 13% 12 promising startups professionals sharing our vision of revenues1 Portfolio2 of 3,878 4,644 Patents Trademarks 1. 2. Percent of 2022 re
Slide 13: Polymer Solutions
Polymer Solutions An industry leader in the production of PVC resins, polymer compounds and derivative materials. Enabling solutions for: #1 Specialty PVC producer globally2 • Food and water security #6 Resins producer globally • Clean water and sanitation #1 Latin America • Affordable housing and i
Slide 14: Paused Planned Investment in PVC Value Chain
Polymer Solutions Paused Planned Investment in PVC Value Chain to Support Water and Food Security • Up to 1 million ton integrated Chlor-Alkali PVC. • Long term fundamentals remain strong. • Anticipated four-year phased investment from • However, temporary headwinds for the end 2024–2028. next 2-3 y
Slide 15: Long-Term demand growth will outstrip capacity additions
Polymer Solutions Long-Term demand growth will outstrip capacity additions PVC Supply, Demand and Operating Rates1 2010-2030E Global PVC demand: 100 • Driven by building and infrastructure industries, 100% 90% urbanization & addressing worldwide water needs. 90 90%• Economic slowdown moderating shor
Slide 16: Building and Infrastructure
Building and Infrastructure Leader in providing city-scale water management solutions enabling the world to adapt to changing climate conditions Offering sustainable customer Leading market share solutions for drinking water, positions include: sanitation, climate-resilient cities and better buildin
Slide 17: Addressing Water & Energy Challenges
Building & Infrastructure Addressing Water & Energy Challenges 46% Cities lose up to 60% of people lack access to 30% 60% of all pumped water Heavier rainfall due to of the world’s electricity is safely managed sanitation2 through pipe leakages1 climate change in parts of consumed the world3 in buil
Slide 18: Providing Solutions to Optimize Water Supply and Reduce Energy Use
Building & Infrastructure Providing Solutions to Optimize Water Supply, Improve Sanitation, Enhance Urban Climate Resilience and Reduce Energy Use in Buildings Safe and Efficient Better Sanitation Climate-Resilient Better Building Water Supply and Hygiene Cities Performance Water Distribution Soil &
Slide 19: Climate Adaptation Solutions
Building & Infrastructure Climate Adaptation Solutions Growth in high-value segments Urban Climate Resilience • Solutions for storm water management and managing heat stress. Complete portfolio to catch, transport, filter, infiltrate, attenuate and re-use rainwater – closing the urban rainwater cycl
Slide 20: Wide portfolio offers one-stop shop for Building and Infrastructure
Building & Infrastructure Our wide portfolio offers ‘one-stop shop’ for Building and Infrastructure applications. Central ranges managed by global teams, local ranges managed by BU product teams. Building Infrastructure Hot & Cold Foul Water Water Solutions Solutions Soil & Waste Urban Climate Solut
Slide 21: Opened New Frontiers in North America, India and Indonesia
Building & Infrastructure Opened New Frontiers in North America, India and Indonesia Continuing our Geographical Expansion North America India Indonesia • Acquired Bow Plastics in • Acquired Vectus Plastics in • Began construction of new 2022 as platform for growth 2022. greenfield site in 2022. in
Slide 22: Leveraging Competitive Advantages for Future Growth
Building & Infrastructure Leveraging Competitive Advantages for Future Growth • Broad product portfolio with expert services and solutions and strong global brand recognition. • Recognized industry and thought leader with track record of innovation, product quality and technical support. • Groundbre
Slide 23: Precision Agriculture
Precision Agriculture Focusing on precision irrigation systems, greenhouses and digital farming technologies Solutions enable farmers to get higher and better-quality yields #1 Global market share2 while using less water, fertilizer, energy and labor to play a critical role in driving a food-secure
Slide 24: Addressing Our Limited Resource Future with Precision Irrigation
Precision Agriculture Addressing Our Limited Resource Future with Precision Irrigation Solutions The world today: The world in 20501: Global water Irrigated area as Global irrigated area withdrawal by sector % of arable land by method 10B People 7% Micro-irrigation 70% Agricultural 18% Sprinklers 60
Slide 25: Leveraging Leadership and Quality to Outpace Market Growth
Precision Agriculture Leveraging Leadership and Quality to Outpace Market Growth Aligned with population growth, local food security and climate change megatrends Precision Irrigation Protected Agriculture (Greenhouse) • Leader in precision irrigation, expecting to • Accelerating market penetration
Slide 26: Sustainable Competitive Advantages with Full End-to-End Solutions
Precision Agriculture Sustainable Competitive Advantages with Full End-to-End Solutions Water Full • Best-in-class, broad range of storage services & end-to-end integrated offerings Automation & Pumps support fertigation • Strong brand based on reputable teams, largest distribution network, Agro mac
Slide 27: Investing to Grow the Total Addressable Market
Precision Agriculture Investing to Grow the Total Addressable Market for Precision Agriculture and in new Business Models Extensive Crops Irrigation-as-a-Service Developed and sold fit- Successfully ran pilots, building for-use solutions for rice, capability to scale. corn, soybeans, cotton and othe
Slide 28: Fluor and Energy Materials
Fluor and Energy Materials Decarbonizing our environment and enabling the world’s transition to sustainable energy Enabling solutions by: #1 Fluorspar2 • Reducing the carbon footprint of steel, cement & aluminum production #1 Medical propellants2 • Transitioning to lower global warming potential ref
Slide 29: Fluorine Plays a Fundamental Role in Enhancing our Day-to-Day Lives
Fluor and Energy Materials Fluorine Plays a Fundamental Role in Enhancing our Day-to- Day Lives Infrastructure Cooling & Refrigeration Medical Propellants Pharmaceuticals Fluorspar is critical to cement, Fluorine is used in refrigerants Fluorinated medical gas Fluorine plays a key role steel and alu
Slide 30: Fluorine is a Critical Material Enabling Energy Transition
Fluor and Energy Materials Fluorine is a Critical Material Enabling Energy Transition The energy storage market Lithium-ion battery The element fluorine is used in: >20% 30kg 1 BINDER ELECTROLYTE (PVDF) (LiPF6) • The electrolyte that CAGR Acidspar per electric vehicle enables lithium ions to move (L
Slide 31: Substantial Investment in Energy Materials: PVDF Joint Venture
Fluor and Energy Materials Substantial Investment in Energy Materials Signed and launched PVDF binder joint venture with Syensqo (formerly Solvay) Syensqo and Orbia created a Combination of Syensqo and Orbia partnership to produce battery-grade strengths enables JV to serve North polyvinylidene fluo
Slide 32: Substantial Investment in Energy Materials: LiPF6
Fluor and Energy Materials Substantial Investment in Energy Materials Leveraging industry-leading technology for LiPF6 manufacturing and U.S. Department of Energy grant Building industry first large-scale Secured world-class technology from North American LiPF6 recognized industry leader manufacturi
Slide 33: Connectivity Solutions
Connectivity Solutions Producing standard and advanced conduit and accessories for telecommunications infrastructure, including FTTx and Data Centers Essential and innovative products and solutions for passive network #1 Global market share2 Industry-leading infrastructure that connect cities, custo
Slide 34: Providing Foundational Infrastructure with Sustainable Competitive Advantages
Connectivity Solutions Providing Foundational Infrastructure with Sustainable Competitive Advantages • Market leadership and innovation. 150+ Salesforce and Project Specialist Employees1 Largest, most sophisticated among peers • Global presence, strategically aligned with high-growth markets. • Rela
Slide 35: Addressable Market Expanding Rapidly Driven by FTTx and Data Centers
Connectivity Solutions Addressable Market Expanding Rapidly Driven by Investments in FTTx and Data Centers FTTx Data Centers Large, multi-year growth driven by need for Robust long-term growth outlook for data fiber to support billions of devices with center investments driven by increased private a
Slide 36: Significant Tailwinds in United States
Connectivity Solutions Significant Tailwinds in United States, Driven by Increasing Appetite for Data & Public Investment >$100B Public Investment in Fiber Fiber Demand Growth Orbia Demand N. American New Fiber to the Home (FTTH) Passings • Positioned as market leader in BEAD $42.5 Mm homes/year dat
Slide 37: Planned Growth Aligned with Tailwinds
Connectivity Solutions Planned Growth Aligned with Tailwinds Investing to meet surging demand Four ongoing footprint expansions Expanding into complementary services • Two new facilities in Salt Lake City, Utah • Acquired Biarri Networks in 2022, a • One new facility in St. Albert, Canada software &
Slide 38: Financial Outlook
Financial Outlook 38
Slide 39: Solid Performance Despite a Weak Market
Financial Outlook Solid Performance Despite a Weak Market Revenue EBITDA US$B US$B $9.6 $2.0 $8.8 $1.9 $8.2 $7.0 $1.5 $6.4 $1.3 $1.3 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Revenue growth of ~17% between 2019 and 2023 39
Slide 40: Consistent Cash Flow Conversion
Financial Outlook Consistent Cash Flow Conversion Operating Cash Flow1 ($) & Operating Cash Flow Conversion2 (%) US$M $1,107 $982 $931 $871 Core drivers for improvement $766 include3: • Working capital improvements • Efficiencies from 66.1% 58.0% digitalization and process 56.1% 48.0% improvements 6
Slide 41: Supporting Growth with a Strong, Flexible Balance Sheet
Financial Outlook Supporting Growth with a Strong, Flexible Balance Sheet • Target Net Debt/EBITDA: <2.5X • Ample liquidity with $1.4B in • Credit Ratings Debt by currency available credit under renewed • Moody’s: Baa3 • Long-Term Debt revolving loan facility 1.8% stable outlook • No near-term fixed
Slide 42: Demonstrated Ability to Grow EBITDA and Maintain Leverage Below Target
Financial Outlook Demonstrated Ability to Grow EBITDA and Maintain Leverage Below Target Over Long Term $2.05 Orbia EBITDA ($B) and Leverage Ratio 2013 – 2023 $1.91 $1.46 $1.40 $1.37 $1.32 $1.11 $0.90 $0.91 $0.93 $0.82 2.2 2.4 2.1 2.1 2.1 1.8 1.7 1.2 1.3 1.0 1.0 2013 2014 2015 2016 2017 2018 2019 20
Slide 43: Key Takeaways
Closing Remarks Key Takeaways 01 Orbia leads in water, food, climate resilience, energy transition and connectivity solutions and is poised to benefit from growth in these sectors 02 Vertically-integrated footprint on supply side of sustainability solutions and positioned to enable near-shoring of c
Slide 44: Orbia is a company driven by a shared purpose
Orbia is a company driven by a shared purpose: to advance life around the world. The five Orbia business groups have a collective focus on expanding access to health and wellness, reinventing the future of cities and homes, ensuring food and water security, connecting communities to information and