Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Q3 2021 Earnings Presentation
40 slides from Grupo Rotoplas Sab De Cv's earnings presentation, 2021
Slide 1: Corporate Presentation Third Quarter 2021
Grupo Rotoplas S.A.B. de CY. Corporate Presentation Third Quarter 2021
Slide 2: Forward-looking statements
Apotoplas-. Forward-looking statements The contents of this presentation, including text, graphics, images and other materials (“Content”), here contained, is for general information purposes only. While we endeavor to keep the information up to date and correct, Grupo Rotoplas, S.A.B. de C.V., make
Slide 3: Experts in water products
a Lie. ; - 2a tter water er industry ow ae @ Experts in water products al
Slide 4: Investment Considerations
Apotoplas-. Investment Considerations | WATER A nascent industry of opportunities PROVIDING SOLUTIONS Market leaders HACIA DONDE VAMOS Oportunidades de valor y crecimiento Dow Ji 4 STRONG FINANCIALS Sustainability Indices Ss ustainab le foc us In Collaboration with RobecoSAM «@
Slide 5: Water: A nascent industry of opportunities
Corporate Presentation WATER A nascent industry of opportunities
Slide 6: Water Demand and Supply
Corporate Presentation Water Demand Population Growth 2020 2050 Total 7.0B 10.0B The demand for water for 2.5x faster than the population NoY) Wd General population will grow by an average of 77 million people in the next 20 years Source: Water Facts and Trends. UN Water. Water Study RobecoSAM, Wate
Slide 7: Water Challenges and Market Size & Dynamics
Corporate Presentation Water Challenges for 2 4 billion people worldwide live without access to adequate sanitation services DoBe DoBe DoBe DoBe DoBe ° ° a) Q Humanity 2/3 of the world’s population live in areas that have water scarcity at least once a month ToudU Market Size & Dynamics $ USD 780 Bi
Slide 8: Case Study — Mexico City
Corporate Presentation Case Study — Mexico City io? “Nowadays, 40% of inhabitants have problems dW regarding water access and quality” Poor quality ie. Nowadays in Tlalpan neighborhood the local government spends US$7M annually in water trucks CDMxX International Airport * The city's water system pr
Slide 9: Water situation in Mexico
Corporate Presentation Zc Water situation in Mexico | | /potoplas:. Country Ranking Risk Mexico 24 3.86 Guatemala 57 2.36 + J Peru 66 208 General water risk lin relation to oe 4 q ee the percentage alvador . ra ; cons Argentina 92 131 aie ts eT m Costa Rica 107 0.92 5.0 49 49 over the total Brazil n
Slide 10: Providing Solutions: Market leaders
Corporate Presentation PROVIDING SOLUTIONS Market leaders
Slide 11: The Company
Corporate Presentation Za toplas:.- The Company ‘Roto yas: => 1994 3Q21 Storage Products Water Market Leader | country 14 countries (14x)! 800 direct clients 53,500+ points of service 500 employees 3,500+ employees (7x)! 3,000 points of sale 29,000+ points of sale (/Ox)! 2 product lines 27 product l
Slide 12: Business Model | Decentralized Water Solutions
Corporate Presentation Business Model | Decentralized Water Solutions B2D ecommerce B2C Residential Commercial Schools B2B / B2C B2B: Business to Business B2C: Business to Consumer B2D: Business to Distributor Through our solutions, we become allies to our customers in order to be more sustainable e
Slide 13: Products and services present throughout the water cycle
Our products and services are present throughout the water cycle. Availability and water harvesting Provisioning to people, industries and communities from the water source: superficial / shallow Reinsertion to the environment Reuse (oO) EU Treatment Pollutants removal from the wastewater Boy Potabi
Slide 14: Portfolio
Corporate Presentation Ze soplas Portfolio /potoplas:.. PRODUCTS SERVICES HE) Water treatment and recycling Wastewater Treatment Plants (WWTP), STORAGE WATER FLOW IMPROVEMENT SELF-SUSTAINABLE Post industrial and Pre- consumption water Water tanks Piping Heaters Rural rainwater Water Purification Pla
Slide 15: Favorable Growth Drivers | Tailwinds
Corporate Presentation Zc Favorable Growth Drivers | Tailwinds /potop!5:. sy Storage * Rapid urban growth = supply interruption > higher demand for water storage products * Water demand > centralized system capacity (old infrastructure and poor city planning) * Growing trend of circular economy - us
Slide 16: Competitive Advantages
Corporate Presentation Competitive Advantages “Value BRAND RECOGNITION - Quality - Social Responsibility - Over 29,000 points of sale in America UNIQUE - Over 53,500 points of DISTRIBUTION F treatment, recycling and RW yaa aad purification NETWORK Source: Rotoplas. Information as of December 2020, =
Slide 17: ESG focus
Corporate Presentation ESG focus /potoplas:. sy Q QQ +28,300 hrs! training collaborators on human rights, processes, health and safety, among other topics 57% independent By Board Members Audit, Compensation and Corporate -& Practices Committees chaired by + 1 - sluinbes trained SOPTAL é CORPORATE i
Slide 18: 360° Value | 2021-2025 Sustainability Strategy
Corporate Presentation 360° Value | 2021-2025 Sustainability Strategy 360° stakeholder impact 360° VALUE _—_—_®—~_ ae VY jas. / potop!4?:. __ pualtaility and collection a 360° sTAK! ER Macy Boosting talent Corporate governance and ethics ——» Employees ——-> Clients and users ——+» Suppliers OOO” ——> I
Slide 19: Climate Change Strategy
Corporate Presentation Climate Change Strategy Seeks to mitigate risks and capitalize on opportunities raised by climate change for Rotoplas and its stakeholders / é End user | Financial Community s Academy @ ain Aa dah Ce Employees BOR, Distribution chain. Board of Directors & Regulatory bodies | C
Slide 20: Climate Change Strategy: Main initiatives
Corporate Presentation - Climate Change Strategy /potop!5:. + Renewable energy supply - solar panels - Main initiatives| energy & materials circularity oS Ba Incorporation of recycled resins (own and third party) y= +--+ Development of blow-molding process for the manufacture of water tanks, more ef
Slide 21: Sustainability Organizational Structure
z Sustainability Organizational Structure potoplas.. Committee is responsible fo g and mon g the different initiatives related to the Sustainability Model and the Sustainabi Practices & Committee It has a multidisciplinary structure and reports to the Board of Directors through the Corporate Practic
Slide 22: Best Corporate Governance Practices
Corporate Presentation 3) ,; S.. Best Corporate Governance Practices otop!as: Board of Directors Our board of directors: Audit Compensation Committee Transparency = > 57% Independent Members Diversity == > 5 international Board Members Innovation = > Represented by 4 different generations Equality =
Slide 23: Growth and value opportunities: Where we are going
Corporate Presentation Growth and value 3 WHERE WE ARE GOING opportunities |
Slide 24: Flow | Transformational program for sustainable growth
Corporate Presentation Flow | Transformational program for a sustainable growth ®@ What is it? Itisan organizational transformation program. What is it for? To seek sustainable growth and the creation of economic, social, and environmental value When did it start? It was proposed in June 2019 and th
Slide 25: Flow | Transformation Program
Corporate Presentation Flow | Transformation Program Enhance performance of current portfolio * Revenue levers 1) Price & volume optimization * Cost levers 1) Procurement of materials 2) Manufacturing efficiency 3) Distribution costs optimization * Working capital levers 1) Inventory levels optimiza
Slide 26: Cross selling opportunities
Corporate Presentation Cross selling opportunities Hi Mature market | | Expanding market i | Emerging market © Plan as /potop!as:. a Storage = & J scrons | | Aporoplas | Aporoplas 1S) ra Waterflow | qubopls qubops | qubopls jz "sane (e) 5 Acuantia. é = = Improvement BIOROCK’ ime I ‘potoplas || Aporo
Slide 27: Strategy per country or region
Corporate Presentation Strategy per country or region - /potoplas:. f- \ a e MEXICO /potopl2s: 1) PERU Arotoplas. * Grow service platform bebbia * Maintain leadership in storage and improvement * Maintain products leadership a * Develop and grow water flow and control segment * Explore new business
Slide 28: Improve discipline in Capital Allocation
Corporate Presentation Improve discipline in Capital Allocation Resource allocation for: bs 5 Inorganic growth Coherence matrix approach Organic growth Share buybacks /potop!as:. @® Dividend Payment Debt Payment Process: 9 —-— pPp—@: Project proposal Evaluation IRR > WACC vA eel alA Q raid Validatio
Slide 29: FLOW | Transformation
Corporate Presentation FLOW | Transformation y /potoplas:. _ —=2022-2025 _— 2021 2020 2019 == a * Plan design * Construction of machinery * Execution of initiatives * Successful transformation * Economic value creation Demonstrate sustainability of the transformation Maintain pace of creation and ex
Slide 30: What's next for Flow? 2025 Guidance
Corporate Presentation What's next for Flow? 2025 Guidance — 2x Sales — Adj. EBITDA Margin 220% — Net Debt / Adj. EBITDA. < 2.0x — Double digit ROIC > WACC (20%'s Neighborhood) ( Growth Avenues S Water-as-a-service Platform Mexico & Brazil bebbia. Sytesaw rieggo. 0) ACUANTIA United States & PLASTIC-
Slide 31: 2025 Expected Growth
Corporate Presentation y /potop!9s:. 2025 | Expected Growth 1M _9, revenue N iS) —Adj. EBITDA Margin >20% N Growth Revenues 2025 CAGR 20-25 - Services Revenue Adj. EBITDA 15% PRODUCTS 12-14% 12 -14% Mexico 8 -10% 9-11% Product: Argentina 5-7% 5-7% 85% USA 29 - 31% 44 - 46% Other 22 - 24% 22 - 24% Ot
Slide 32: 2025 | Strategy
ZS S.. 2025 | Strategy /potoplas:. 1, FLOW 470 Initiatives with approved business case $5.8 bn Incremental sales $3.1 bn Incremental Adj. EBITDA ; ; 2. THINGS TO Flow implementation costs ~$75 mm 60% Successs rate CONSIDER (4Q21 is the last quarter) — CapEx 5% of sales — Government sales < 10%. 3. S
Slide 33: Guidance 2021
Corporate Presentation Guidance 2021 /potoplas:. — Sales growth 217% — Adj. EBITDA Margin 17% - 18% — Net Debt / Adj. EBITDA s 2.0x — ROIC = WACC + 200 bp
Slide 34: Rotoplas Commitments
Corporate Presentation /potopl2s:. — To being driven by out Company’s purpose; best serving our customers and communities — To ESG best practices, in line with our stakeholders’ interests — To creating value for our shareholders through sustainable growth ROTOPLAS COMMITMENTS — To promoting society’
Slide 35: Strong Financials
4 STRONG FINANCIALS With a sustainable focus
Slide 36: Business Model Resilience
Corporate Presentation Business Model Resilience ‘o) Continuous growth (©) Double digit margins (0)Strong Management * Mexico — 41 years * Central America — 23 years * Peru — 21 years * Argentina - 2] years * Brazil — 20 years * USA-— 5 years 2 /potoplas:. Ro ye 6.0x 1 . 9 CAGR: 12.7% 10,565 8 7,889
Slide 37: 9M21 Results
Corporate Presentation y— /potop!s:. = Mexico mw Argentina mUSA = Other $378 Cash Conversion Cycle Inventory Days 59 Accounts Receivable Days 51 Accounts Payable Days 52 9M21 Results MXN mm 12% | 12% SF Sales per EBITDA per CAPEX m4 Country $8,114 Country $1,256 Country 9M21 9M20 A %/bps Net sales {
Slide 38: Sound Financials
Corporate Presentation Sound Financials MXN mm Debt Maturity Profile Qc wr $4,094 $4 billion from the issuance of our sustainable bond AGUA 17-2X $69 2021 2027 Interest coverage* 7.2% SIX 3 Ax i [ qT 2017 2018 2019 2020 LTM “Financial expenses used for the calculation consider interest paid on inter
Slide 39: ROIC vs Cost of Capital
Corporate Presentation ROIC vs Cost of Capital © ROIC 400bp above WACC © Ww 1% 73% 73% TUITAORBELeonEnnwaNnNUAAAAOQOQSOAAA ocMoMoMeMoMoMoMeMoMeMoMmoMoMeMoMeMoMcMcMo—eMei—~—~E~E Remon) SHPZAAFFRAGPRaFZARILRGELSIGGFAS ROIC: NOPAT LI2M/Invested Capital t, t1 Invested Capital: Total Assets — Cash and ca
Slide 40: Thank you! Investor Relations
Corporate Presentation /potopl?5-. Thank you! INVESTOR RELATIONS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com
Grupo Rotoplas S.A.B. de C.V. — Q3 2021 Earnings Presentation on 6ix