Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q3 2022 Earnings Presentation
38 slides from Grupo Rotoplas Sab De Cv's earnings presentation, October 2022
Slide 1: Corporate Presentation 3Q22
E= Fpotoplas:. 3 Q Grupo Rotoplas S.A.B. de CV.
Slide 2: Forward-looking statements
Corporate Presentation Zz /potop!s:. 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 Rotop
Slide 3: In Rotoplas we are more and better water
Corporate Presentation E= Fpotoplas:. In Rotoplas we are more and better water @ +3 decades in the water industry @ Experts in water products and services @ Presence in 14 countries @ Focused on 360° value creation
Slide 4: AGUA* | Key messages
Corporate Presentation AGUA* | Key messages Fporopl2s:- Sustainable growth lan: Rotoplas pays P P dividends annually, Sa uit despite being a growing company Leader in sustainability and innovation — Rotoplas operates sustainably and helps its clients to reduce their environmental impact Transformati
Slide 5: Water: providing solutions, where we are going, strong financials
Corporate Presentation WATER PROVIDING SOLUTIONS WHERE WE ARE GOING STRONG FINANCIALS Dow Jones Sustainability Indices In Collaboration with RobecoSAM «@ rotoplas:
Slide 6: Water: a nascent industry of opportunities
Corporate Presentation 2) jas... 0 0 masy mel" agua WATER A nascent industry of opportunities
Slide 7: Water Demand and Water Supply
Corporate Presentation Water Demand Water Supply Fporop las: Population Growth “™ Imbalance in water distribution 2020 2050 @) Rural... 3.0B.... 3.0B ] countries control Urban..4.0B_...7.0B Total 7.0B 10.08 60% of the global fresh water supply AaAnAw aansr The demand for water for non-agricultural u
Slide 8: Case Study — Mexico City
Corporate Presentation Case Study — Mexico City ior ‘40% of inhabitants have water access and Pay iw quality problems“ Bringing water in and out of the city -2,240m altitude- is energy intensive and very expensive @ Shortages Poor quality Renewable water in Mexico will ie. Nowadays in Tlalpan neighb
Slide 9: Which countries are most at risk of running out of water?
Which countries are most at risk of running out of water? Level of vulnerability to water stress in the world*. Very low (<10%) Low (10-20%) Medium (20-40%) High (40-80%) MExtreme (>80%) “According to the proportion of water used annually with respect to the available supply. Source: 2020 Ecological
Slide 10: Water situation in Mexico
Corporate Presentation. Water situation in Mexico | | General water risk! ¢ 2 oo S cy oe o 2 EL SE. SEE EE EEE EES § SS PES BE ES SF é Lo e “oe ee ss oe 3 * oe & ae Soy ef Oy Se oe ot FS FS S gf & es & ee TS 1 . . . . 1 O-1low 1-2 low-medium 2-3 medium-high 3-4 high 4-5 extremely high t ‘In relation
Slide 11: Water cost evolution | USA
Corporate Presentation Water cost evolution | USA Trends in consumer prices (CPI) for utilities 1978 Weeeeeeeueeeeeee Source: Institute of Public Utilities/Michigan State University Water & Sewer (1953) Postage (1935) CPI (1913, 1983=100) Electricity (1913) Natural Gas (1935) Tel. Services (1997=100
Slide 12: Providing Solutions: Market leaders
Corporate Presentation PROVIDING SOLUTIONS Market leaders
Slide 13: The Company
Corporate Presentation The Company 1994 Storage Products @ | country 800 direct clients 500 employees 3,000 points of sale 2 product lines 8 plants 1 innovation and development center Sales MXN 500mm EBITDA MXN 70mm 3Q22 Water Market Leader 14 countries (14x)! 83,000+ points of service 3,300+ employ
Slide 14: Points of service and points of sale
points of service points of sale
Slide 15: Traditional and New Businesses
Corporate Presentation Fporop las Os /Rotopl?5:.. Value Growth Adaptation Solutions Mitigation Solutions Traditional Businesses New Businesses ©) Leading brands ® Investment phase: negative cash flow @) Strong market share th Negative EBITDA — YTD ($236) M) Strong cash flow : @ Strong earnings growt
Slide 16: Our products and services are present throughout 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 17: Portfolio
Corporate Presentation . E Portfolio /potop!4s:. { mds 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 P
Slide 18: Favorable Growth Drivers | Tailwinds
Corporate Presentation Favorable Growth Drivers | Tailwinds Re /potop!as:. PRODUCTS SERVICES 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 -
Slide 19: Competitive Advantages
Corporate Presentation Competitive Advantages a - Value BRAND RECOGNITION - Quality - Social Responsibility /potoplas-. + Focus on ESG (Environmental, Social & Governance) 5 - Operational excellence in our processes ROTOPLAS PROCESSES backed by a SAP platform + Customer Centric culture - Strategy wi
Slide 20: 360º Value generation
Corporate Presentation V4 (aS... 360° Value | 2021-2025 Sustainability Strategy /Rotop'? 360° VALUE 360° stakeholder ~ ~ impact NV a x~wCDP , $ le / > Employees \ 2y K { ——» Clients and users \ STREET | As TCFD | 5 Ne Ale i ——» Suppliers \ / Booreine colen Cr eer schiee ec — Investors and financial
Slide 21: Results and Targets | ESG
Corporate Presentation. Results and Targets | ESG @ lroSer Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) Oaner CO, intensity - Scope 1 and Scope 2 per ton of processed resin m3 of water treated by our solutions (cumulative) Olerrle People with access to water and sanitation
Slide 22: Climate Change Strategy
Corporate Presentation Climate Change Strategy Main initiatives | energy & materials circularity : ee) « Renewable energy supply - solar panels - a) --« Incorporation of recycled resins (own and third party) = ) -« Development of blow-molding process for the manufacturing of water tanks, which is mo
Slide 23: Independent Members / Total Members
8/14 3/3 3/3 3/3 Independent Members / Total Members
Slide 24: Where we are going: Growth and value opportunities
/potoplas: ) WHERE WE ARE GOING Growth and value opportunities
Slide 25: Flow | Transformation Program
Corporate Presentation Flow | Transformation Program A. 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 optim
Slide 26: Transformation timeline 2020-2021 and beyond
Corporate Presentation. — 2021 2020 019 * Execution of initiatives * Successful transformation + Plan design * Economic value creation * Construction of platform and processes Demonstrate sustainability of the transformation Maintain pace of creation and execution of initiatives * Sustainable growth
Slide 27: Cross selling opportunities
Corporate Presentation ay Cross selling opportunities ‘Rotopl®- Hi Mature market | | Expanding market |_| Emerging market Plan fp Explore ” Storage | Acuantia. P scrons | *potoplas | | Apotoplas 3 Waterflow | ca | qubopls J rvons* jz “onan 2 Improvement “et I Aporoplas Es | an Purification hana PP P
Slide 28: Mexico, Peru, USA, Central America, Argentina, Brazil
MEXICO PERU • • • • • • USA CENTRAL AMERICA • • • • • • ARGENTINA BRAZIL • • • • •
Slide 29: Improve discipline in Capital Allocation
Corporate Presentation Improve |discipline in Capital Allocation Resource allocation for: Qo Organic growth | —— &S norganic growth Share buybacks Dividend Payment Debt Payment Coherence matrix approach Process: Y > © See BS Project proposal Evaluation IRR > WACC Validation and approval anil Quarter
Slide 30: What's next for Rotoplas?
Corporate Presentation What's next for Rotoplas? Growth Avenues Water-as-a-service Platform potoplas: Acuantia ACUANTIA = Acuantia Sy =-Double digit-ROIC > WACC ~ “(20%'s Neighborhood) Launching of new solutions Synergies between operations D&A Platforms
Slide 31: Expected 2025 revenues and margins
Corporate Presentation PRODUCTS 12-14% 12-14% Mexico 10 -12% 10 - 12% Argentina 12 - 14% 9-1% * : USA 29 - 31% 44-46% eS | Other 1S - 17% 15-17% Expecte : SERVICES 30 - 32%” Margin > 20% TOTAL 14-15% 16 - 18% "2025 Revenues Orner 10% Services Argentina 20% 2x Revenue 20% Adj. EBITDA Margin >20% Prod
Slide 32: Sales growth, Adj. EBITDA margin, Net Debt/Adj. EBITDA, ROIC
Zz rotoplas: Sales growth Adj. EBITDA Margin Net Debt / Adj. EBITDA ROIC = 32
Slide 33: Strong Financials
Corporate Presentation Zz /potoplas:. STRONG FINANCIALS With a sustainable focus 33
Slide 34: Continuous growth, double-digit margins
Corporate Presentation. Spear ©) Continuous growth ©) Double-digit margins (Q)Strong Management * Mexico — 41 years * Central America — 23 years * Peru — 21 years * Argentina - 21 years * Brazil — 20 years * USA-— 5 years Sales 71x CAGR: 13.0% y 12,481 10,915 8,644 7,859 7,790 6.551 6,660 asso 2322
Slide 35: 9M22 Results
Corporate Presentation 9M22 Results oplas.. MXN mm c top" S = Mexico Sales per $9,649 EBITDA pe CAPEX per $452 @ Argentina Country Country Country = USA = Other 9M22 9M21 A %/bps Net sales [| g649 || ana |] 19% | Cash Conversion Cycle Cost of Sales 5,610 5,064 1% ays | | I | 60 d Inventory Days 73 M
Slide 36: Sound Financials
Corporate Presentation Sound Financials /potop!2s:- MXN mm Strong Balance Sheet to support growth September 2022 Debt Maturity Profile Cash and Cash Equivalents $4 billion from the Other Asssets sustainable bond KOK Debt 4,096 AGUA 17-2X Bla an = Other Liabilities 2,388 ‘Total Liabilities == |_-6.48
Slide 37: ROIC vs Cost of Capital
Corporate Presentation. | ROIC vs Cost of Capital | /potopls:. “S ROIC above WACC _ 174% 12.9% 11.0% ROIC: NOPAT L12M/Average Invested Capital t, t1. Invested Capital: Total Assets - Cash and Cash Equivalents — Short-Term Liabilities. ROIC excludes Flow program execution costs from 2Q20 to 4Q21 as t
Slide 38: Thank you! Investor Relations
Corporate Presentation E= /potoplas:. Thank you! INVESTOR RELATIONS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com 38
Grupo Rotoplas, S.A.B. de C.V. — Q3 2022 Earnings Presentation on 6ix