Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Investor Day (2024)
62 slides from Grupo Rotoplas Sab De Cv's investor day presentation, Dec 5, 2024
Slide 1: AGUA Day 2024
AGUA DAY 2024
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains certain forward-looking statements and information relating to Grupo Rotoplas S.A.B. de C.V. and its subsidiaries (collectively, “ROTOPLAS”) that are based on its knowledge of present facts, expectations and projections, circumstances and assumpt
Slide 3: Today's Agenda
Today’s Agenda Ql]. Keynote Presentation O2. Rotoplas’ 4 Strategic Priorities O03. Strategy & Initiatives for Mexico, Argentina and the U.S. O4, Digitalization Strategy OS. Financial Strategy OG. Sustainability Strategy
Slide 4: Today's Speakers
‘AGUA Day 2024 ,’ Today’s Speakers ( ( ) Susana Barroso Carlos Rojas Aboumrad Consejo Consultivo del Agua CEO S XL zs) -) (- ( >) * Coordinator of the Communication Committee at the Water Advisory Chief Executive Officer and Board member of Grupo Council in Mexico. Rotoplas. Carlos joined the Compan
Slide 5: Today's Speakers
‘AGUA Day 2024 4 ( ) Fabiano Gongalves Joseph Vesey CEO Latin America CEO USA Se J / la \ 7 > Rotoplas’ CEO of South America, Joined Rotoplas in 2023 as the CEO of responsible for operations in Acuantia US. Before this, Joe served as Argentina, Peru, and Brazil since 2018. Senior Vice President and
Slide 6: Detonating solutions through water
Detonating solutions through water
Slide 7: The Water Advisory Council
The Water Advisory Council is a multisectoral civil association focused on promoting society's participation in the planning, decision-making, execution, evaluation, and monitoring of national water policy. We are recognized by the National Water Law (Article 14 BIS)
Slide 8: Water challenges in Mexico
Water challenges in Mexico Industry Agriculture Public supply Energy Agribusiness Industrial Aquaculture Agriculture Livestock Commerce Urban Services Source: CONAGUA / SEMARNAT
Slide 9: Water challenges in Mexico
Water challenges in Mexico 1. Climate change and climate vulnerability: we receive more water in less time. 2. Governance: Short, medium, and long-term planning. Three government levels and civil society seeking better conditions in basins. 3. Institutional strengthening: • Monitoring and verifiable
Slide 10: Water Budget in Mexico
Water Budget in Mexico Water budget was reduced by 40.8% compared to 2024 and 48.8% compared to 2023, the year the largest federal budget was allocated to the water sector compared to the last 10 years. Source: Aneas Securing water for our societies by 2030 could cost just over 1% of global GDP, aro
Slide 11: Mexico has a robust legal framework
Mexico has a robust legal framework
Slide 12: National Water Plan
National Water Plan Water policy and national sovereignty • Water Law Reforms: Push for updates to national legislation. • Digital Platform: Launch "Water for Wellbeing" for streamlined processes. Justice and access to water • Decree Implementation: Regularize expired water concessions. • Expanded A
Slide 13: National Water Plan
National Water Plan The National Water Plan will use an infrastructure Budget based on: National Agreement for the Human Right to PRODDER: Rights cashback program Water and Sustainability + PROSANEAR: Wastewater Sanitation Program Voluntary contribution of water volumes 2,500 mm3 PROAGUA: Drinking W
Slide 14: Pending Bills
Pending Bills Amendments to the Constitution General New National Amendments to the President AMLO’s Bill Water Law Water Law (Arts. 4 and 27) (Art. 4 Constitution (Art. 27 Constitution Human Right to Water Access) Water management)
Slide 15: Thank You!
Consejo Consultivo del Agua, A.C. THANK YOU!
Slide 16: Which sector has the greatest growth opportunity in Mexico?
Which sector do you believe has the greatest growth opportunity in Mexico in coming years? U) a) Irrigation UL) b) Water treatment and recycling L) c) Rainwater harvesting LU) d) Water purification UL) e) Water storage O) f) Pipes CO) g) All of the above
Slide 17: CEO's strategic priorities
Forop!?8:- tN carlos Rojas | CEO CEO’s strategic priorities
Slide 18: Four strategic priorities
+45 years of innovation in water solutions Sustainable Growth of the Commitment to Stakeholders Traditional Business Growth and Development of New Business Digitalization Businesses
Slide 19: Priority 1: Sustainable Growth of the Traditional Business
Priority 1 | Sustainable Growth of the Traditional Business
Slide 20: SMART Project: Tinaco Plus+, reinventing our legacy
AGUA Day 2024 Aros oplas.. Sustainable Growth of the Traditional Business SMART Project | Tinaco Plus+, reinventing our legacy Innovating to meet customer needs and align with sustainability goals & Faster Manufacturing | Manufacturing time -70% Enhanced Durability YD Sustainable Design ( | -) | 100
Slide 21: Ixtapaluca Manufacturing facility: Transforming Operations
‘AGUA Day 2024 /poropl?s:. Sustainable Growth of the Traditional Business Ixtapaluca Manufacturing facility: Transforming Operations Built to meet the challenges of today while creating value for tomorrow Strategic Location in the Eastern Valley of Mexico AT% Ml Remainin $230 M 8 Invested @ Energy e
Slide 22: Strengthening of the product portfolio
Strengthening of the product portfolio
Slide 23: Priority 2: Growth and Development of New Businesses
Priority 2 | Growth and Development of New Businesses
Slide 24: Growth and Development of New Businesses
‘AGUA Day 2024 Growth and Development of New Businesses million MXN . 9 CAGR: 15.3% 321 Evolution from 5% to 7% of total sales 619 479 465 430 Focus on holistic Water solutions beyond traditional products 2020 2021 2022 2023 LTM24 Ml Services Sales otoplas is now a comprehensive water solutions prov
Slide 25: Growth and Development of New Businesses
Growth and Development of New Businesses Provides subscription-based access tc CAGR: 15.3% high-quality drinking water Optimizes water use in agricultu while promoting sustainability 2020 2021 2022 2023 LTM24 Offer wastewater treatment solutions, improving water availability 26 The graph does not i
Slide 26: Hola Francisco
Hola Francisco il sand, while also removing chePhia SonmestApRaste. Provides users with live update their waterquatityieneco garmRewenas taemiwdtbiactiona information bon | Filters large particles g __=
Slide 27: Mexico Deep Dive
Foroplas.. z Fl conzalo Uribe | CEO MX+CA Mexico Deep Dive
Slide 28: Mexico Products
‘AGUA Day 2024 B Mexico Products Storage 1,702 1478510 1.513 Waterflow Mexico Sales ¥ H e. | EF. (as... 3Q23 4Q23 1924 2Q24 3Q24 Improvement 4| J ats /Rotop!?: MM MXN Strong brand recognition, synonymous loT sensors installed in key Mexican with high quality and durability in the cities to monitor w
Slide 29: Mexico Products Strategy
‘AGUA Day 2024 B Mexico Products Strategy Ol. Consolidate Tinaco Plus in the market * Leverage strong market acceptance to expand reach and drive sustained growth potop!as:
Slide 30: bebbia customer base and metrics
AGUA Day 2024 Customer base +130,000, adding 25,000 new users in 2024 Reduced installation times and improved first- appointment success rates B2B growththrough partnerships with major companies Customer Lifetime Value (LTV) up 30% & Customer Acquisition Cost (CAC) down 15% bebbia SMART leads new su
Slide 31: bebbia Strategy
AGUA Day 2024 HB bebbia Strategy Ol. Drive adoption of loT-enabled products 02. Strategic partnerships to grow B2B sales 03. Improve customer satisfaction (installation and maintenance service) Positive EBITDA could be achieved with the current customer base and churn rate ae Negative EBITDA stem fr
Slide 32: Argentina Deep Dive
Forop!?8:- ‘°= Fabiano Goncalves | CEO LATAM Argentina _ Deep Dive
Slide 33: 3.5% decline in GDP for the full year
3.5% decline in GDP for the full year • • • •
Slide 34: Argentina operational efficiency
‘AGUA Day 2024 Zz /potop!s:. Instalamos contianza ou, sy esacoe SENORIAL Calor que perdura Optimizing transformation costs and achieving savings in raw materials Operational Efficiency and Working Capital Optimization Optimizing inventory levels to align with a less inflationary economy
Slide 35: Argentina Strategy
‘AGUA Day 2024 /rotoplas f= Argentina Strategy Zz /potop!s:. Instalamos contianza ou, sy esacoe IBS SENORIAL Calor que perdura Launching new products O 2 Innovation and e Portfolio Growth Leveraging synergies across our three leading brands
Slide 36: Argentina Strategy
‘AGUA Day 2024 f= Argentina Strategy Zz /potop Ro [as... is Instalamos contianza ou, sy esacoe IBS SENORIAL Calor que perdura 03. Implementation of Dn&A and development of e-commerce Digital Transformation and Improved Customer Experience Redesigning our go-to-market strategy
Slide 37: USA Deep Dive
Foroplas.. y Joseph Vesey | CEO for USA USA Ss Deep Dive
Slide 38: USA Strategy
AGUA Day 2024 z= O1. Septic solutions: Simp and refocused business Online & e-commerce platform water market $3.2 billion served available market with expected annual growth of 3-5% 02. Product expansion: Over 350 new products added Inside/outside commercial team Physical branches with local invento
Slide 39: Digital Transformation
Forop!?8:- z 2 Stephane Mathieu | ClO Digital Transformation
Slide 40: E-commerce: Empowering Our Distributors
AGUA Day 2024 E-commerce: Empowering Our Distributors Order Execution _| Distributor Seamless Efficiency Engagement Customer Experience * Reduced processing * Daily usage by several * Transparent ordering times key distributors process * Real-time dashboard * Enhanced decision- * Trust-building with
Slide 41: Artificial Intelligence: The Future of Sales
AGUA Day 2024 fio toplas:. Artificial Intelligence: The Future of Sales Optimized Real-time insights and Automates tasks, freeing time * Tailored recommendations personalized recommendations for customer relationships build trust with customers Al assists distributors, Increases lead conversion rate
Slide 42: AI Integration and upcoming launches
AGUA Day 2024 By soplas:. Al Integration Frotop!?? * Google Vertex Al and Gemini boost efficiency * Training programs empower teams to adopt Al tools ( ») ( Upcoming launches Monetizing digital investments * B2B2C platform to extend Looking ahead * Digitalfirst solutions drive reach and add revenue
Slide 43: Economic Value Creation
Foroplas.. z Fl Andrés Pliego | CFO Economic Value Creation
Slide 44: Financial Performance Review
Frotop 2s: Financial Performance Review million MXN 12,774 2020 2021 2022 2023 LTM2024 HiSales @ EBITDA Margin
Slide 45: Financial Performance Review
Financial Performance Review million MXN 2020 First record year driven by the pandemic 8,644 2020 HiSales @ EBITDA Margin
Slide 46: Financial Performance Review
Financial Performance Review million MXN 10,915 2021 Faced supply chain disruptions and increases in raw material costs 2021 HiSales @ EBITDA Margin
Slide 47: Financial Performance Review
Financial Performance Review million MXN 12,774 2022 New record year amid water Scarcity in Monterrey 2022 HiSales @ EBITDA Margin
Slide 48: Financial Performance Review
Financial Performance Review million MXN 12,146 2023 Encountered challenges from a strong peso, macroeconomic factors, and climate events 2023 HiSales @ EBITDA Margin
Slide 49: Financial Performance Review
Financial Performance Review million MXN 11,853 2024 Navigated an economic recession in Argentina and experienced water scarcity followed by heavy rains in central Mexico LTM2024 HiSales @ EBITDA Margin
Slide 50: 2025 Strategy | Financial Priorities
AGUA Da) 2025 Strategy | Financial Priorities y 2024 Ol. Reversing the EBITDA trend through cost and expense reductions Decrease in digital expenses SG&A: Staff restructuring in 4Q24 General expense reductions across all business units 02. Increasing free cash flow through optimized working capital
Slide 51: Sustainable Value Creation
Foroplas.. x Pi José Luis Mantecén | CSO | Sustainable S _- Value Creation
Slide 52: Sustainable Value Creation: Profit, Planet, People
Sustainable Value Creation 2023 Target 2024 Target 2025 Critical Tier- suppliers evaluated > 100% with ESG criteria ° 100% solar renewable energy at four of our eleven plants in Mexico Customer satisfaction (NPS score) 80 Al = Planet ’ CO, intensity — Scopes 1 and 2 per ton of processed resin m3 of
Slide 53: Sustainable Value Creation: What is an EPD?
AGUA Day 2024 Frot oplas.. Sustainable Value Creation What is an EPD? Comprehensive analysis throughout the life cycle detailing the environmental impact Our 2030 emission SBTi, committing us Rotoplas' Progress + Published first EPD for Tinaco Plus+ 1,J00L in 2024 * 42% reduction in Declaracién Ambi
Slide 54: Sustainable Value Creation: SBTi targets
AGUA Day 2024 Sustainable Value Creation SE /RotoP! t Declaration X SBTi| Science Based Targets initiative SDID | Sust r \ Our 2030 emission reduction targets were approved by the SBTi, committing us to: * 42% reduction in scopeland 2 emissions * 25% reduction in scope 3 emissions Commitment relativ
Slide 55: Sustainable Value Creation: SDID Report
‘AGUA Day 2024 Sustainable Value Creation approved by the In collaboration with J.P. Morgan, we published our SDID Report We are the first company in Latin America and the second globally to disclose how our strategy aligns with the UN Sustainable Development Goals Google Cloud Platf We have develop
Slide 56: Google Cloud Platform - Environmental indicators
AGUA Day 2024 Frot oplas.. Sustainable Value Creation \ ) Google Cloud Platform - Environmental indicators We have developed an in-house environmental management system to automate the calculation of our GHG inventory for scopes 1 and 2, while also collecting other indicators such as water usage
Slide 57: Sustainability reporting frameworks
a 2028 Ay toplas:- Sustainable Value Creation Frameworks 2022 2023 > Global Reporting Initiative | GRI cpp ij ; | Climate Change Submitted y Sustainability Accounting Standards Board | SASB cDP pc | poe | Suited! Water Security Task Force on Climate-related Financial Disclosures | TCFD ronal nee Car
Slide 58: Our Commitment
Slide 59: Key Takeaways
AGUA Day 2024 Key Takeaways FRoropl?8:- ¢ We are strengthening our traditional business with innovation and efficiency * Our growing services platform is unlocking new opportunities across the water cycle * Digital transformation is enhancing how we operate and connect with customers ¢ Prior investm
Slide 60: TOUTE ELBE USER
TOUTE ELBE USER + HANNA Ta AANA AA Ey
Slide 61: Thank you
maank you! Use the code AGUADAY24 30% discount for 12 months of our bebbia service
Slide 62: Thank you, see you next year!
it ‘AGUA Day 2024 Thank you, see you next year! INVESTOR RELATIONS CONTACTS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com https://rotoplas.com/inversionistas