Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q1 2023 Earnings Presentation
31 slides from Grupo Rotoplas Sab De Cv's earnings presentation, May 2023
Slide 1: Corporate Presentation 1Q23
EE /potoplas:. 202 23. l Q. SAB de cy. re Corporate Presentation
Slide 2: We are water solutions
We are water solutions Clear structure for a sustainable future Strong Finances Water, a treasure at risk Mission | for people to have more and better water Vision | Offer non-centralized and sustainable water solutions, with relevant benefits for our customers, within the Rotoplas Way
Slide 3: potopla°:
potopla°:
Slide 4: Key Messages
Corporate Presentation Key Messages Rotoplas pays dividends annually, despite being a growing company Sustainable growth plan: double sales in 5 yea rs Transformation story: Rotoplas significantly increased its ROIC in 2 years Clear climate change and diversity targets Leader in sustainability and i
Slide 5: A story motivated by water
A story motivated by water 14 countries International expansion begins with the plant Rotoplas starts Rotoplas is born The first polyethylene in Mexico water tank is in Guatemala operating in Argentina C3RBroptas. launched 18 plants r 0) sti © 5 27 product lines Acquisition of Talsar . Rotoplas is l
Slide 6: Our Products | Solutions for adapting to climate change
Corporate Presentation fporoplas:. Our Products | Solutions for adapting to climate change Value Traditional Business @ Leading brands (a) Strong market share C1) Strong cash flow @ Steady EBITDA - YTD $599 re) Dividend payment \ ‘gate | SENORIAL “fotoplaS- ‘ovsctsyocoe Calor que perdura
Slide 7: Our Services | Climate change mitigation solutions
Corporate Presentation Our Services | Climate change mitigation|solutions Treatment & recycling rsa Rotoplas servicios de agua Acuantia. /poroplas a Growth New Businesses @ nwestment phase: negative cash flow @ Negative EBITDA - YTD ($46) @strong earnings growth potential Ne
Slide 8: Rotoplas' presence
Corporate Presentation Rotoplas’ presence I Mature market IB Expanding market Mi Emerging market © Plan PP Explore ( & & & >) al Storage J acuona | | /potop!as | roto! plas ) Ee 12) D> ( pops bo} is &, las ye silanes *) a q Waterflow Tu Tul Rotop! [BS comanze ) fe) [4 af = ~ q Improvement z= | worl
Slide 9: What's next for Rotoplas?
What's next for Rotoplas? Guidance 2025 2x Sales Double digit ROIC > WACC Growth Avenues ss Water as a Service Platform Mexico & Brazil bebbia. /Rotoplas: SS ACUANTIA United States Acuantia. & ss Launching of new solutions dase ACuantia. iS Synergies between operations ws D&A Platforms
Slide 10: Higher growth than the initial plan, 22% CAGR vs 14-15%
• • • ~ • • • ≥ Higher growth than the initial plan, 22% CAGR vs 14-15%
Slide 11: New Businesses Growth | Market Opportunity
Corporat ion New Businesses Growth | | Market Opportunity BB Main initiatives 2023 /rotop! bebbia. - 3 M households (82C) -1M institutional clients (B28) - 500 M USD annual recurring revenues - Process automation - Development of digital platform - Optimization of field services - Grow B2B Acuantia.
Slide 12: 360° Value | 2021-2025 Sustainability Strategy
Corporate Presentation 360° Value | 2021-2025 Sustainability Strategy 0 360° stakeholder ; _ SOO YALE impact | poaitabilty and collection 0° STAKEHOLDER Iajpg \ a 7 ——> Employees \ 5 Clients and users —> Suppliers | — Investors and financial Boosting talent community } > Authorities } / 0) — Academi
Slide 13: Results & Goals | ESG
Corporate Presentation Results & Goals| ESG @Wrofa Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) Olaner CO, Intensity - Scope 1 and Scope 2 — per ton of processed resin m? of purified water using our solutions Olerple People impacted with access to sanitation (cumulative) W
Slide 14: Investment in training, development and acquisition of key talent
-Investment in training, development and • • acquisition of key talent • • • • • -Team focused on improving online presence • • -Investment in process • optimization -Clear processes for capital allocation and prioritization of initiatives • • • • • • • • -Sustainable Growth Plan • • • -Robust cyber
Slide 15: Nearshoring | Opportunities in the Water Industry
Corporate Presentation Nearshoring | Opportunities in the Water Industry fporoplas:. Companies are beginning to move their production chain to Mexico, and this represents a great opportunity for our market. Why Mexico? | 2 | Opportunities for Rotoplas * Location We have 14 manufacturing plants for p
Slide 16: Clear structure for a sustainable future
Clear structure for a sustainable future
Slide 17: Flow has become the daily way of operating within Rotoplas
Flow has become the daily way of operating within Rotoplas. • • • ° • • • • ∼ • • • • • • • • • • • • • • • •
Slide 18: Corporate structure | Board & Top Management
ee Apotopl9s: Corporate structure | Board & Top Management Our board of directors Transpar independent mem internationaln nit generations CEO Equality Gender equality on the Board, omen VP of North and Board members VP of H and S VP Individual Solutions and Services Latam an Capital tainability Cent
Slide 19: Discipline in Capital Allocation
Corporate Presentation, Discipline in Capital Allocation Resource allocation for: a ® Organic growth Inorganic growth Share buybacks Dividend Payment Debt Payment Coherence matrix approach. Process: - e YS Pees yh wt Project proposal Evaluation IRR > WACC Validation and Quarterly status approval upd
Slide 20: Strong Finances
Strong Finances potopla°:
Slide 21: Business Model Resilience
Corporate Presentation Business Model Resilience MXN mm CAGR: 12.4% v 7.3x 12,861 12,774 10,915 n 8.644 Ane - Ww 7,859 7,790 Continuous grow | 6551 6,660 < 5,399 5,700 5,363 uble-digit margins n 4,680 3.049 Strong Manageme 1,769 1.980 2.161 2,415 I i | | | | _ ° 2006 2007 2008 2009 2010 201 2012 201
Slide 22: 3M23 Results
/potopl2s- 3M23 Results MXN mm By country By solution Sales EBITDA CAPEX Sales EBITDA P “] = \ ; Ve ‘ce cn \ = Mexico a @ Products y m Argentina m Services $2,746 $553 $110 = USA $2,746 = Other 1Q23 1Q22 A %/bps vt “ ae i on Cash Conversion Cycle ost of Sales 1% : : 86 days ra [isn | 06s | 23% | 2 4
Slide 23: 3M23 Results | Debt Maturity Profile
Corporate Presentation, 3M23 Results MXN mm Debt Maturity Profile $4,096 2023 2027 Interest coverage* 5.4x i Alx 4.3x 2019 2020 2021 2022 2023 9.6x TAX “Considers net interest paid = interest expense — interest income “Calculation of interest coverage: LTM EBITDA/ LTM Net interest expense $50 millio
Slide 24: ROIC-WACC spread exceeds earnings guidance
ROIC-WACC spread exceeds earnings guidance
Slide 25: AGUA* vs. IPC and peers
Corporate Presentation, Arotopls:. AGUA* mee Ne AGUA* vs. IPC (Mexbo) Sales soo Rexnord 1% Watts 4% Veolia 5% _ Xylem 4% Coway S% Flowserve 3% Evoqua 4% Pentair. 4% Mueller 3% Primo. 4% Lindsay Corp 5% Hayward 1% Fluidra 3% Toro S% Badger Meter 1% Ecolab 6% Franklin Electric 1% Average 5% | Rotoplas
Slide 26: Guidance 2023
Guidance 2023
Slide 27: Water a treasure at risk
Water a treasure at risk /potoplas:
Slide 28: Our water supply is at risk, requiring decentralized water solutions
Our water supply is at risk, requiring decentralized water solutions Imbalance in water distribution ] 6) countries control 6BO%or the global fresh water supply n”nr™ anno Across the world, water supply & sewer systems are 40% to 60-80 decrease in @ years atl renewable water . er capita in the last
Slide 29: Water situation in Mexico
Corporate Presentation Water situation in Mexico | 8 General water risk Americal General water risk! Country Ranking Risk Mexico 24 3.86 Guatemala 87 2.36 Peru 66 2.05 50 49 USA vA 185 49 48 ag a7 46 46 46 46 El Salvador 78 166 “84493 a2 gy Argentina 92 131 37 Costa Rica 107 0.92 343333 32 49 Brazil
Slide 30: Water cost evolution | USA
Corporate Presentation Water cost evolution | USA Trends in consumer prices (CPI) for utilities higan State University Water & Sewer (1953) Postage (1935) CPI (1913, 1983=100) Electricity (1913) Natural Gas (1935) Tel. Services (1997=100) Water is the fastest rising utility cost
Slide 31: Investor Relations
INVESTOR RELATIONS Maria Fernanda Escobar Mariana Fernandez mfescobar@rotoplas.com mfernandez@rotoplas.com Institutional e-mail agua@rotoplas.com https://rotoplas.com/inversionistas