Orbia Advance Corp. Sab De Cv · BMV:ORBIA
Orbia Advance Corp. Sab De Cv — J.P. Morgan Global Emerging Markets Corporate Conference 2024
40 slides from Orbia Advance Corp. Sab De Cv's conference presentation, March 2024
Slide 1: Purpose-Driven. Customer-Focused. Addressing World Challenges.
Purpose-Driven. Customer-Focused. Addressing World Challenges. March 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% 19% North America South America Boston, MA $8.2B USA Mexico City, Mexico Tel Aviv, 2023 Revenue1 10% 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 Other 2023 EBITDA Share 46% 19% 19% 15% 20291 Plan EBITDA 45% 25% 20% 10% Share 1. Includes full contribution of PVC e
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: Sustainability Strategy
Sustainability Strategy Our purpose to advance life around the world defines our sustainability strategy and our strategy operationalizes our purpose. As a sustainable solutions provider, we operate, invest and provide solutions that contribute to tackling 3 world challenges 8
Slide 9: Our 3-pillar strategy allows us to operate and grow sustainably
Our 3-pillar strategy allows us to operate and grow sustainably Low-Impact & Resilient Operations Sustainable Solutions Impactful Ventures • Climate: -28% Scope 1 & 2 emissions (vs. 2019 Sustainable solutions portfolio enables decarbonization and positive Portfolio companies continue to grow baselin
Slide 10: Progressing on Our Path to Net Zero
Progressing on Our Path to Net Zero Our pathway1 is backed by science-based commitments 2025 2030 2050 Safety 0.71 Waste Climate Change Climate Change 0.56 Total Recordable Incident Rate 100% of facilities to Reduce scope 1 & 2 GHG Reduce scope 3 GHG Achieve net zero carbon (TRIR) below 0.2 for achi
Slide 11: 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 sharing professionals our vision of revenues1 Portfolio2 of 3,000 4,900 Patents Trademarks 1. 2. Percent of 2022 re
Slide 12: 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 13: 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 • Weak real estate and construction markets in China expected to continue for 2 -3 yrs. • Anticipated four-year phased investment from end 2024–2028 • E
Slide 14: 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 15: Addressing Water and Energy Challenges
Building & Infrastructure Addressing Water and Energy Challenges 50% 30% 40% Cities lose up to 60% of all pumped water of the people in the heavier rainfall due to of energy is consumed developing world live climate change3 in buildings4 through pipe leakages1 without improved sanitation2 15
Slide 16: Providing Solutions to Optimize Water, Improve Sanitation, Enhance Urban Climate Resilience
Building & Infrastructure Providing Solutions to Optimize Water, 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 Infrastructure Soil & Wast
Slide 17: Climate Adaptation Solutions
Building & Infrastructure Climate Adaptation Solutions High-value segments aligned with climate adaption solutions Urban Climate Resilience • Includes stormwater management, blue roofs, green roofs, rainwater collection & re-use, tree bunkers • Expected to grow significantly over next several years
Slide 18: Opened New Frontiers in North America, India and Indonesia
Building & Infrastructure Opened New Frontiers in North America, India and Indonesia North America India Indonesia • Acquired Bow Plastics in 2022 as • Acquired Vectus Plastics in • Began construction of new platform for growth in $10B+ 2022; added 14 sites in greenfield site in 2022 North American
Slide 19: Precision Agriculture
Precision Agriculture Focusing on precision irrigation systems, greenhouses and digital farming technologies Solutions enable farmers to get higher #1 Global market share2 and better-quality yields while using less water, fertilizer, energy and labor to play a critical role in driving a food- secure
Slide 20: Addressing Our Limited Resource Future with Precision Irrigation Solutions
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 21: 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 22: Sustainable Competitive Advantages with Full End-to-End Solutions
Precision Agriculture Sustainable Competitive Advantages with Full End-to-End Solutions Water Full services • Best-in-class, broad range of storage end-to-end integrated offerings Automation & & support Pumps fertigation • Strong brand based on reputable teams, largest distribution network, design a
Slide 23: Investing to Grow the Total Addressable Market for Precision Agriculture
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-for- Successfully ran over 10 pilots to use solutions for rice, corn, validate model. Building capability to scale
Slide 24: 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 25: 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, steel Fluorine is used in refrigerants Fluorinated medical gas Fluorine plays a key role and alu
Slide 26: 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 >20% 30kg fluorine is used in: 1 BINDER ELECTROLYTE (PVDF) (LiPF6) CAGR Acidspar per • The electrolyte that enables electric vehicle lithium ions to move (L
Slide 27: Substantial Investment in Energy Materials
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 partnership Combination of Syensqo and Orbia strengths to produce battery-grade polyvinylidene enables JV to serve North Amer
Slide 28: Substantial Investment in Energy Materials
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 North Secured world-class technology from American LiPF6 manufacturing facility recognized indu
Slide 29: Connectivity Solutions
Connectivity Solutions Producing standard and advanced conduit and accessories for telecommunications infrastructure Essential and innovative products and solutions for passive network #1 Global market share2 Industry-leading infrastructure that connect cities, homes customer service and people $1.1
Slide 30: Addressable Market Expanding Rapidly Driven by Investments in Connectivity
Connectivity Solutions Addressable Market Expanding Rapidly Driven by Investments in Connectivity Conduit Market Driven by Demand for Fiber Large, multi-year growth driven by • Urban and rural broadband need for fiber to support billions of • 5G cellular mobile networks devices with private and gove
Slide 31: Providing Foundational Infrastructure with Sustainable Competitive Advantages
Connectivity Solutions Providing Foundational Infrastructure with Sustainable Competitive Advantages • 50 years of market leadership and 200+ Salesforce and Project Specialist Employees1 Largest, most sophisticated among peers innovation • Global presence, strategically aligned with high-growth mark
Slide 32: Significant Tailwinds in United States
Connectivity Solutions Significant Tailwinds in United States, Driven by Increasing Appetite for Data & Public Investment $90B Public Investment in Fiber Fiber Demand Growth Orbia Demand • Positioned as market leader in Incremental U.S. homes connected data conduit and solutions Infrastructure Inves
Slide 33: Planned Growth Aligned with Tailwinds
Connectivity Solutions Planned Growth Aligned with Tailwinds Investing to meet surging demand Four ongoing footprint expansions Expanding into complementary services • Two new facilities in Salt Lake City, Utah • Acquired Biarri Networks in 2022, a • One new facility in St. Albert, Canada software &
Slide 34: Financial Outlook
Financial Outlook 34
Slide 35: Solid Performance Despite a Weak Market
Solid Performance Despite a Weak Market Revenue EBITDA US$B US$B $9.6 $2.0 $8.8 $1.9 $8.2 $7.0 $1.5 $6.4 $1.3 $1.3 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Revenue growth of ~17% between 2019 and 2023 and achieving adjusted EBITDA target for 2023 35
Slide 36: Consistent Cash Flow Conversion
Consistent Cash Flow Conversion Operating Cash Flow1 ($) & Operating Cash Flow Conversion2 (%) US$M $1,107 $982 $931 $871 Core drivers for $766 improvement include3: • Working capital improvements • Efficiencies from 66.1% 58.0% digitalization and process 56.1% 48.0% improvements 64.0% • Supply chai
Slide 37: 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 $850M in available • Credit Ratings credit under $1B revolving loan facility • Moody’s: Baa3 • Long-Term Debt • EUR $750M commercial paper, available stable outlook • No n
Slide 38: 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 9 $2.05 Orbia EBITDA ($B) and Leverage Ratio 2010 – 2023 $1.91 8 7 $1.46 $1.40 $1.37 6 $1.32 5 $1.11 $0.96 $0.91 $0.93 4 $0.90 $0.83 $0.82 $0.65 3 2 2.4 2.2 2.1 2.1 2.1 1.8 1.7 1 1.3 1.3 1.1 1.0 1
Slide 39: 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 40: 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
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