Alpek, S.a.b. De C.v. Class A · BMV:ALPEK/A
Alpek, S.a.b. De C.v. Class A — Alpek Sab De Cv Ord — Q3 2023 Earnings Presentation
20 slides from Alpek, S.a.b. De C.v. Class A's earnings presentation, Oct 23, 2023
Slide 1: Third Quarter 2023 Earnings Webcast
THIRD QUARTER 2023 EARNINGS WEBCAST
Slide 2: Today's Speakers
TODAY’S SPEAKERS JORGE YOUNG JOSÉ CARLOS PONS ANTÓN FERNÁNDEZ CEO CFO IRO 3 3
Slide 3: Agenda for Today's Webcast
AGENDA FOR TODAY’S WEBCAST 1. Overview 2. Financial Performance 3. Relevant Events 4. Outlook 5. Q&A 4
Slide 4: Quarterly Context
QUARTERLY CONTEXT ——
Slide 5: Integrated PET Reference Margins
INTEGRATED PET REFERENCE MARGINS 400 Asian reference margins averaged -18% US$272 332 323 per ton 272 Average YTD $316 225 Chinese reference margins averaged US$146 146 per ton 3Q22 2Q23 3Q23 Asia China Px / MEG to PET (US$/Ton) 6 6
Slide 6: NA Polypropylene Reference Margins
NA POLYPROPYLENE REFERENCE MARGINS 34 17 cents per pound ~ 17 17 Margins remain flat due to supply/demand dynamics 3Q22 2Q23 3Q23 PP to PGP (cpp) 7 7
Slide 7: NA EPS Reference Margins
NA EPS REFERENCE MARGINS 75 19 cents -58% per pound 44 Due primarily to a disconnect between higher raw material prices and a lag in EPS price increases 19 3Q22 2Q23 3Q23 EPS to Styrene (cpp) 8 8
Slide 8: 3Q23 Financial Highlights
3Q23 FINANCIAL HIGHLIGHTS VOLUME COMPARABLE NWC EBITDA 1.18M TONS US$160M US$214M Influence from Asian Decrease PET ref. Net Working Capital imports margins improved mainly from inventory Lower EPS ref. PP volume improved management margins from seasonality Higher feedstock costs for EPS 9 9
Slide 9: Volume Evolution
VOLUME EVOLUTION 1,359 Polyester: 955K tons -2% (-3% QoQ) 246 1,197 1,177 Due mostly from a continuation of Asian imports 213 222 P&C P&C: 222K tons (+4% QoQ) Mainly from PP demand improvement 1,114 984 955 Polyester from seasonality 3Q22 2Q23 3Q23 Quarterly sales volume (ktons) 1010
Slide 10: Average Feedstock Costs
AVERAGE FEEDSTOCK COSTS Paraxylene Prices NA Propylene Styrene Contract Price Spot Prices 61 +8% -10% +11% 1,505 47 1,462 40 53 1,352 36 51 1,124 48 1,110 1,070 46 45 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 3Q22 2Q23 3Q23 North America Asia North America Asia NA Px price Disconnect Propylene prices Styrene pr
Slide 11: EBITDA Breakdown
EBITDA BREAKDOWN Comparable EBITDA 424 4 Overall 159 US$160 M Polyester US$114 M -21% 201 3 160 (-11% QoQ) 70 4 -1 0 -18 126 261 42 -15 Others 4 P&C US$42 M 43 P&C 127 114 79 Polyester (-40% QoQ) 3Q22 2Q23 3Q23 Carry-forward Inventory Filament Others 3Q23 Reported Comparable Comparable Comparable Ef
Slide 12: Free Cash Flow Generation
FREE CASH FLOW GENERATION 1,879 NWC: US$214M Mainly due to inventory 126 management 1,675 15 2 CAPEX: US$38M 214 38 35 From maintenance & to 46 a lesser extent for CCP Operating FCF YTD: US$407M Operating FCF: US$221M Net Debt EBITDA NWC Financial Taxes CAPEX Dividends Others Net Debt Jun’23 Expense
Slide 13: Net Debt & Leverage
NET DEBT & LEVERAGE Net Debt (US$M) LTM EBITDA (US$M) 2,082 1,860 1,879 1,805 1,675 1,426 Leverage Goal to remain 1,102 below 2.5x 837 1,539 827 646 3Q22 4Q22 1Q23 2Q23 3Q23 3Q22 2Q23 3Q23 Comp. EBITDA 2.6 ND / EBITDA 1414
Slide 14: Debt Profile 3Q23
DEBT PROFILE 3Q23 Net debt: Coupon Coupon 3.250% 5.375% US$1,675 M Coupon Coupon 4.250% 5.375% 600 Available Committed 522 Credit lines: US$607 M 505 500 Approved sustainability-linked 200 loan for 158 US$200 M 6 11 Cash 2023 2024 2025 2026 2027 2028 2029 2030 2031 Cash Bonds Bank Debt Consolidated
Slide 15: Filament Operations Shutdown
FILAMENT OPERATIONS SHUTDOWN
Slide 16: Corpus Christi Polymers
7 CORPUS CHRISTI POLYME Ss i a (,
Slide 17: WEPS Women's Empowerment
"] WoMeEN’s | EMPOWERMENT
Slide 18: Outlook
OUTLOOK
Slide 19: Q&A
Q &A JORGE YOUNG JOSÉ CARLOS PONS CEO CFO 2020
Slide 20: Visit alpek.com or Contact Us for Additional Information
THIRD QUARTER 2023 EARNINGS WEBCAST VISIT ALPEK.COM OR CONTACT US FOR ADDITIONAL INFORMATION ANTÓN FERNÁNDEZ ALEJANDRA BUSTAMANTE IRO | Corporate Finance | ESG VP IR Manager afernandez@alpek.com abustamante@alpek.com EMAIL: IR@alpek.com