Orbia Advance Corp. Sab De Cv · BMV:ORBIA
Orbia Advance Corp. Sab De Cv — Investor Presentation (March 2022)
51 slides from Orbia Advance Corp. Sab De Cv's investor presentation, March 2022
Slide 1: Investor Presentation March 2022
Investor Presentation March 2022
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: Invest with Us
Invest with Us 01 Leading global business platforms 02 Multiple catalysts for value creation with organic and inorganic growth opportunities 03 Experienced global leadership team executing transformation to double-digit ROIC and strong cash flow generation 04 Focused on ESG while delivering world-cl
Slide 4: Company Overview and Strategy
Company Overview and Strategy Investor Presentation | 4
Slide 5: orb • bia: Making a mark in the world, for the world
Making a mark in the world, for the world. “Orb” “Bia” Optimize Our Reduce The Latin word for a A word from Greek mythology Investments Greenhouse Gas Emissions spherical globe. for the personification of force. orb • bia Evolve to an Innovative Solutions Provider Reduce Waste Sent to Landfill 2018
Slide 6: Addressing the world's biggest challenges
Addressing the world’s biggest challenges. How do we feed the How can we better manage How do we make cities more world sustainably? our water systems? livable, lovable and resilient? How do we connect and empower Can health and well-being How do we push beyond communities with data? be made accessi
Slide 7: Orbia Snapshot—A global company with global impact
Orbia Snapshot—A global company with global impact. 1953 ~22,000 100+ Countries US $8.8B 23.3% Founded Employees Commercial Activities 2021 Revenues 2021 EBITDA Margin 2021 Financial Highlights by Segment Diversified Global Footprint 8% 2021Revenues by Region1 11% 35% NORTH EUROP 13% Revenues AMERIC
Slide 8: Diverse, global platforms with strong market positions
Diverse, global platforms with strong market positions. Mexichem (2005) Revenue by Geography EBITDA by Sector Revenue by Geography Orbia (2020) EBITDA by Sector Growth Since 20051 80% 35% 70% Chemicals & 10% Chemicals & 11x Revenue Mexico Basic Products Mexico Basic Products 30% 20% 90% Rest of Wo
Slide 9: Durable portfolio focused on higher growth markets
Our durable portfolio of businesses is focused on higher growth markets and regions and benefits from long-term megatrends. POLYMER BUILDING & PRECISION DATA FLUORINATED SOLUTIONS INFRASTRUCTURE AGRICULTURE COMMUNICATION SOLUTIONS 35%1 33%1 13%1 11%1 8%1 • Amongst the most cost- • Legendary brand wi
Slide 10: Experienced and passionate leadership team focused on execution
Experienced and passionate leadership team focused on execution. Sameer Bharadwaj Chief Executive Officer Business Group Leaders Corporate & Functional Leaders Gaby Gautam Peter John Jorge Luis Jim Mike Tania Rabasa Miodownik Nivarthy Hajdu Branan Guzmán Mejía Kelly Bruggeman Kovacs EVP & President,
Slide 11: Engaged Board of Directors
Engaged Board of Directors Antonio del Juan Pablo del Valle Antonio del Valle María de Guadalupe Francisco Guillermo Ortiz Valle Ruiz Perochena Perochena del Valle Perochena del Valle Martínez Honorary Chairman Chairman Patrimonial Patrimonial Patrimonial Independent for Life Eduardo Mihir Divo Mila
Slide 12: The next phase of our strategy
The next phase of our strategy Where we are going Capture profitable growth and have an impact as a global leader. Where we are Cultivating for tomorrow Where we were Robust organic growth • Grow through geographic expansion, Building capabilities and new product offerings and innovative solutions.
Slide 13: Where We Are: Customer-Centricity
1 Where We Are: Customer-Centricity Getting closer to customers by strengthening and expanding our market leadership through value-adding initiatives. Polymer Building & Precision Data Fluorinated Solutions Infrastructure Agriculture Communications Solutions • Assessing expansion • Expanding our foo
Slide 14: Where We Are: Innovation
2 Where We Are: Innovation Innovating differently to capture large market opportunity. Generating new products Organic and services through the introduction of “circular Fluorinated economy” principles. Offers a multi-layered data collection Solutions strategy – military grade drones, ground sensors
Slide 15: Where We Are: Operational Excellence
3 Where We Are: Operational Excellence Our Operational Excellence journey is underway, identifying cost efficiencies in order to drive stronger profitability. Delivering positive results by maintaining focus on: Supply Chain Improving Footprint Optimizing Asset Management Efficiency and Capacity Uti
Slide 16: Where We Are: Sustainability
4 Where We Are: Sustainability Significant progress on ESG initiatives in 2021 and against our longer-term goals. Our path to net zero 2025 20301 2050 Environmental Waste Management Climate change Safety 100% of plants Air emissions Climate change 100% of Sites Certified Achieve TRIR2 < 0.2 for will
Slide 17: Where We Are: Sustainability
4 Where We Are: Sustainability Significant progress on ESG initiatives in 2021 and against our longer-term goals. Social Governance 2% Resource Efficiency /Circularity • Continuing to support our people • Issued inaugural 2% 66% and families around the world in Sustainability-Linked Bond. getting th
Slide 18: Sustainable Solutions Highlights
4 Where We Are: Sustainability Sustainable Solutions Highlights 7 of 8 transactions by Orbia Ventures in climate tech. 66% of 2020 revenues contribute to the UN SDGs. Building & Infrastructure Precision Agriculture Fluorinated Solutions Rotterdam selected Wavin as a partner to implement innovative L
Slide 19: ESG Transparency and Accountability
4 Where We Are: Sustainability ESG Transparency and Accountability Dow Jones Sustainability Index Since 2019, Orbia is a member of the DJSI MILA Pacific Alliance Index. In 2021, our total score increased by 5%, reflecting a commitment to continuously improve our ESG performance in all aspects of our
Slide 20: Strong financial performance despite an unprecedented pandemic
5 Where We Are: Financial Outperformance Strong financial performance despite an unprecedented pandemic. Sales ($M) EBITDA ($M) & Margin (%) ROIC (%) $8,783 13.9% $2,047 $6,987 $6,420 $1,365 $1,318 23.3% 7.9% 7.5% 20.5% 19.5% 2019 2020 2021 2019 2020 2021 2019 2020 2021 Agility and Customer Focused
Slide 21: Multiple Catalysts for Future Value Creation
Multiple Catalysts for Future Value Creation Global Leading Business Platforms Strong Cash ESG is a Competitive Flow to Support Advantage Profitable Growth Operational Rigor to Enable Stronger Performance Higher Growth Markets and Regions Investor Presentation | 21
Slide 22: Business Groups
Business Groups Investor Presentation | 22
Slide 23: Orbia's business unit value chain positions
Orbia’s business unit value chain positions Natural Resource Basic Specialty Differentiated Manufactured Downstream Recovery Chemicals Chemicals Materials Processes Solutions Chlor-Alkali & PolyVinyl Chloride Vinyl Chloride Specialty Caustic Soda (PVC) Market Monomer Compounding Production Manufactu
Slide 24: Polymer Solutions Snapshot
Polymer Solutions Snapshot Business Concentration Polymer Solutions Corporate Headquarters $3.4B $1.1B 33.0% 2021 Revenues 2021 EBITDA 2021 EBITDA Margin Boston, MA, United States The Polymer Solutions group is as adaptable and dynamic as the materials it produces. It focuses largely on PVC and othe
Slide 25: Polymer Solutions Strengths & Future
Polymer Solutions Strengths & Future Core Strengths Leveraging Strengths to Win The Future of Vestolit/Alphagary • Low-cost PVC producer. • Backwards integration into basic raw Expand our Core Business materials (Ethylene and VCM) that Continue to grow as a key player in the PVC, Compounds • Global
Slide 26: Polymer Solutions Growth Initiatives
Polymer Solutions Growth Initiatives Organic Growth Market Expansion New Products Streamline Production Leverage geographic footprint Develop out next generation • De-bottleneck existing and strong distribution network of best-in-class products for: production capacity. • Enter Asian market with a w
Slide 27: Building & Infrastructure Snapshot
Building & Infrastructure Snapshot Business Concentration Building & Infrastructure $2.9B $424M 2021 Revenues 2021 EBITDA 14.5% 2021 EBITDA Margin Corporate Headquarters Amsterdam, Netherlands The Building and Infrastructure group is 75K+ 80+ ~50 ~11K 5 SKUs Countries served Production plants in Emp
Slide 28: Building & Infrastructure Strengths & Future
Building & Infrastructure Strengths & Future Core Strengths Leveraging Strengths to Win The Future of Wavin • Key player with customer • Broad product portfolio and Global Market Leader solutions in drinking water, strong brand recognition. Safe and efficient water supply, better sanitation sanitati
Slide 29: Building & Infrastructure Growth Initiatives
Building & Infrastructure Growth Initiatives Water Sanitation Climate Resilient Cities Building Performance Building Soil and Waste Storm Water Management Indoor Climate Systems • Expand our Hot & Cold position • Continue to rationalize • Complete range of infiltration • Integrate heating, (currentl
Slide 30: Precision Agriculture Snapshot
Precision Agriculture Snapshot Business Concentration Precision Agriculture Corporate Headquarters Tel Aviv, Israel $1.1B $146M 12.9% 2021 Revenues 2021 EBITDA 2021 EBITDA Margin The Precision Agriculture group helps the world grow more with less. With a focus on irrigation systems, services and dig
Slide 31: Precision Agriculture Strengths & Future
Precision Agriculture Strengths & Future Core Strengths Leveraging Strengths to Win The Future of Netafim • Market leader in most regions • Leverage Netafim’s unique leadership Expand our Core Business in the world, with the most position in the market. Continue geographical expansion, established a
Slide 32: Precision Agriculture Growth Initiatives
Precision Agriculture Growth Initiatives Digital Farming Community Irrigation Leading the digital farming market for Penetrate the 500 million small Irrigation and fertigation. farmer market with scalable, • Continue developing NetBeat: sustainable solutions. The cutting-edge solution for • PPP mode
Slide 33: Data Communications Snapshot
Data Communications Snapshot Business Concentration Data Communications Corporate Headquarters Boston, MA, United States The Data Communications group is working to ensure that everyone around the $994M $134M 2021 Revenues 2021 EBITDA 13.5% 2021 EBITDA Margin world has a chance to make the most of t
Slide 34: Data Communications Strengths & Future
Data Communications Strengths & Future Core Strengths Leveraging Strengths to Win The Future of Dura-Line • Deep, technical knowledge • Global footprint, relevant for hyper- More Advanced Products in conduit products. scalers and global network/data Shift to more advanced products: from center opera
Slide 35: Data Communications Growth Initiatives
Data Communications Growth Initiatives Market Expansion New Products & Services Digitization Emerging Markets Advanced, Application-Centric Digital Transformation • Develop strategic accounts team. Product Portfolio • Become an Infrastructure • Shift to higher margin micro-ducts Technology (InfraTec
Slide 36: Fluorinated Solutions Snapshot
Fluorinated Solutions Snapshot Business Concentration Fluorinated Solutions $744M $244M 32.9% 2021 Revenues 2021 EBITDA 2021 EBITDA Margin Corporate Headquarters Boston, MA, United States The Fluorinated Solutions group creates fluorine-based products and technologies 100% Vertical integration 20% P
Slide 37: Fluorinated Solutions Strengths & Future
Fluorinated Solutions Strengths & Future Core Strengths Leveraging Strengths to Win The Future of Koura • Koura supplies ~20% of the • World’s largest Fluorspar mineral body Strengthen Existing Portfolio world’s fluorine from our mine with decades of proven reserves. Optimize and invest in our exist
Slide 38: Fluorinated Solutions Growth Initiatives
Fluorinated Solutions Growth Initiatives Low Global Warming Healthcare Sustainable Energy Refrigerants Expand into New Business Formulated Materials New Downstream Models • Become leading supplier of • Next-generation low-GWP electrolyte components, binders, Opportunities propellants with a carbon f
Slide 39: Financial Highlights
Financial Highlights
Slide 40: Historical Financial Performance
Historical Financial Performance Sales ($M) EBITDA ($M) & Margin (%) ROIC (%) 2500 50% $8,783 45% 13.9% $2,047 2000 40% $7,198 $6,987 $6,420 35% $5,828 9.2% $1,397 $1,365 $5,349 1500 30% $1,318 8.2% 7.9% 23% 7.5% $1,106 25% 21% 6.7% $884 19% 20% 1000 20% 19% 17% 15% 500 10% 5% 0 0% 2016 2017 2018 20
Slide 41: Improving Free Cash Flow and Conversion
Improving Free Cash Flow and Conversion Free Cash Flow ($M) & FCF Conversion (%) Drivers of strong FCF 700 500% • Prioritization of strategic $572 growth projects in optimal 450% $553 600 end markets 400% 500 350% $406 $413 300% • Resilient and diversified, global portfolio 400 250% 300 200% $201 20
Slide 42: Strong Balance Sheet with ample liquidity
Strong Balance Sheet with ample liquidity Balance Sheet ($M, 12/31/2021) Debt Profile ($M, 12/31/2021) Net Debt-to-EBITDA Cash / Cash Equivalents 782 Gross Debt 3,520 2.5x 2.1x 2.1x 2.1x Accounts Receivable 1,370 Less Cash 782 1.8x 2.0x Inventory 1,292 Net Debt 2,738 Total Assets 10,587 Gross Debt t
Slide 43: Disciplined capital allocation strategy: Focused on investing for growth
Disciplined capital allocation strategy: Focused on investing for growth 3 Focus Areas Our Philosophy Compelling project funding with no Reinvestment Growth Cash Returns Business Group bias To support day-to-day With an emphasis In the form of Continuous risk operations and on organic healthy di
Slide 44: A strategic and disciplined approach to inorganic growth
A strategic and disciplined approach to inorganic growth. • Seek bolt-on M&A to achieve new technologies and build upon existing capabilities. M&A Approach • An efficient avenue to achieve growth strategies, especially when assets, brand, distribution channels and/or technologies can be attained at
Slide 45: Invest with Us
Invest with Us 01 02 03 04 05 Leading, global Multiple catalysts Experienced Focused on ESG Solid financial business for value creation global leadership while delivering foundation with platforms. with organic and team executing world-class disciplined capital inorganic growth transformation to per
Slide 46: Appendix
Appendix Investor Presentation | 46
Slide 47: P&L Last 5 years (Annual)
P&L USD in millions Last 5 years (Annual) Income Statement 2021 2020 2019 2018 2017 Net sales 8,783 6,240 6,987 7,189 5,828 Cost of sales 6,156 4,574 5,029 5,199 4,375 Gross profit 2,627 1,846 1,958 1,999 1,453 Operating expenses 1,178 1,126 1,135 1,064 745 Operating income (loss) 1,449 720 823 935
Slide 48: Balance Sheet
Balance Sheet USD in millions Last 5 years (Annual) Balance sheet 2021 2020 2019 2018 2017 Total assets 10,587 10,211 10,057 10,075 9,776 Current assets 3,724 3,156 2,852 2,977 3,952 Cash and temporary investments 782 875 586 700 1,900 Receivables 1,370 1,093 1,158 1,150 975 Inventories 1,292 861 83
Slide 49: Cash Flow Statement
Cash Flow Statement USD in millions Last 5 years (Annual) Cash flow 2021 2020 2019 2018 2017 EBITDA 2,074 1,318 1,365 1,397 1,106 Taxes paid, net (278) (264) (233) (242) (122) Net interest/Bank commissions (252) (196) (261) (237) (164) Change in trade working capital (479) 32 (112) (92) (103) Others
Slide 50: Financial Results 2021: Business Performance
Financial Results 2021: Business Performance Polymer Data Solutions Communications mm US$ Annual mm US$ Annual Polymer Solutions 2021 2020 2019 % Var. 21-20 % Var. 20-19 Data Communications 2021 2020 2019 % Var. 21-20 % Var. 20-19 Total Revenue 3,438 2,171 2,334 58% -7% Total Revenue 994 732 749 36%
Slide 51: IR Contact
IR Contact Gerardo Lozoya Latapi Investor Relations Director gerardo.lozoya@orbia.com Diana Echemendía Echeverría Investor Relations Manager diana.echemendia@orbia.com Orbia Social Networks http://linkedin.com/company/orbiaglobal twitter.com/orbia instagram.com/weareorbia/ Yammer Investor Presentati
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