Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Investor Presentation (February 2023)
36 slides from Grupo Rotoplas Sab De Cv's investor presentation, February 2023
Slide 1: Corporate Presentation
E= /potoplas:. } Q Grupo Rotoplas Bo. de CV. 22
Slide 2: In Rotoplas we are more and better water
Corporate Presentation E= /potoplas:. In Rotoplas we are more and better water @ +3 decades in the water industry @ Experts in water products and services @ Presence in 14 countries @ Focused on 360° value creation
Slide 3: AGUA* | Key messages
Corporate Presentation AGUA* | Key messages Fporopl2s:- Sustainable growth lan: Rotoplas pays P P dividends annually, Sa uit despite being a growing company Leader in sustainability and innovation — Rotoplas operates sustainably and helps its clients to reduce their environmental impact Transformati
Slide 4: Water
Corporate Presentation WATER PROVIDING SOLUTIONS WHERE WE ARE GOING STRONG FINANCIALS Dow Jones | Sustainability Indices In Collaboration with RobecoSAM «@ rotop!as:
Slide 5: A nascent industry of opportunities
Corporate Presentation 2) jas... 0 0 masy me" agua WATER A nascent industry of opportunities
Slide 6: Water Demand and Water Supply
Corporate Presentation Water Demand Population Growth 2020 2050 Rural. 3.0B.... 3.0B Urban..4.0B_...7.0B Total 7.0B 10.0B The demand for water for non-agricultural uses increases 2.5x faster than the population ° mpl \ “1S General population will grow by an average of 77 million people in the next 2
Slide 7: Which countries are most at risk of running out of water?
Which countries are most at risk of running out of water? Level of vulnerability to water stress in the world*. Very low (<10%) Low (10-20%) Medium (20-40%) High (40-80%) MExtreme (>80%) “According to the proportion of water used annually with respect to the available supply. Source: 2020 Ecological
Slide 8: Water situation in Mexico
Corporate Presentation. Water situation in Mexico | | General water risk! 2-3 medium-high 3-4 high 1-2 low-medium 1 O-l low t ‘In relation to the percentage of consumption over the total water available in a year. 2UN Global Land Outlook Source: World Resources Institute (WRI) /potoplas. AP. General
Slide 9: Water cost evolution | USA
Corporate Presentation Water cost evolution | USA Trends in consumer prices (CPI) for utilities 1978 Weeeeeeeueeeeeee Source: Institute of Public Utilities/Michigan State University Water & Sewer (1953) Postage (1935) CPI (1913, 1983=100) Electricity (1913) Natural Gas (1935) Tel. Services (1997=100
Slide 10: Providing Solutions: Market leaders
Corporate Presentation PROVIDING SOLUTIONS Market leaders
Slide 11: The Company
Corporate Presentation The Company 1994 Storage Products @ | country 800 direct clients 500 employees 3,000 points of sale 2 product lines 8 plants 1 innovation and development center Sales MXN 500mm EBITDA MXN 70mm 4Q22 Water Market Leader 14 countries (14x)! 90,000+ points of service 3,200+ employ
Slide 12: Points of service and points of sale
points of service points of sale
Slide 13: Value Growth: Adaptation and Mitigation Solutions
Corporate Presentation Fporop las Pe /Rotopl35:.. Value Growth Adaptation Solutions Mitigation Solutions Traditional Businesses New Businesses @) Leading brands ® Investment phase: negative cash flow @) Strong market share fk Negative EBITDA — YTD ($288) M Strong cash flow : @ Strong earnings growth
Slide 14: Our products and services are 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 15: Portfolio
Corporate Presentation . E Portfolio /potop!s:. { mds PRODUCTS SERVICES nie) 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 Pl
Slide 16: Favorable Growth Drivers | Tailwinds
Corporate Presentation Favorable Growth Drivers | Tailwinds Re /potop!as:. PRODUCTS SERVICES 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 -
Slide 17: Competitive Advantages
Corporate Presentation Competitive Advantages - Value - Quality - Social Responsibility /potoplas-. + Focus on ESG (Environmental, Social & Governance) 5 + Operational excellence in our processes ROTOPLAS PROCESSES backed by a SAP platform + Customer Centric culture - Strategy with a robust coherenc
Slide 18: 360º Value generation
Corporate Presentation Va (aS... 360° Value | 2021-2025 Sustainability Strategy /Rotop'? 360° VALUE 360° stakeholder ~ ~ impact NV a x~wCDP , $ le / > Employees \ 2y K { ——» Clients and users \ STREET | As TCFD | 5 Ne Ale i ——» Suppliers \ / Booreine colen Cr eer schiee ec — Investors and financial
Slide 19: Profit Planet People: Results & Goals | ESG
Corporate Presentation. Results & Goals| ESG @ lroSer Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) Oaner CO, Intensity - Scope 1 and Scope 2 - per ton of processed resin m3 of purified water using our solutions Olerrle People impacted with access to sanitation (cumulative)
Slide 20: Climate Change Strategy
Corporate Presentation Climate Change Strategy : a¢ *) « Renewable energy supply - solar panels - Main initiatives | energy & materials a “y circularity C a) --« Incorporation of recycled resins (own and third party) . = ) --« Development of blow-molding process for the manufacturing of water tanks,
Slide 21: Independent Members / Total Members
8/14 3/3 3/3 3/3 Independent Members / Total Members
Slide 22: Where we are going: Growth and value opportunities
/potoplas: ) WHERE WE ARE GOING Growth and value opportunities
Slide 23: Flow | Transformation Program
Corporate Presentation Flow | Transformation Program A. 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 optim
Slide 24: FLOW
Corporate Presentation y— FLOW | /potop!as:. — 2024 - 2025 X * Sustainable growth * 360° Value creation 2021-2022 oo + Flow's methodology used + Enhanced profitability 020 in all the organization's + Demonstrate sustainability processes of the transformation 2019 5 - _ + Prioritizati F ke * Executio
Slide 25: Cross selling opportunities
Corporate Presentation y— Cross selling opportunities ‘Rotopl®- Hi Mature market | | Expanding market |_| Emerging market Plan fp Explore a” Storage | Acuantia, igi P scrons | Aporoplas | | Aporoplas 3 Waterflow | ca | qubopls J rvons* jz ‘same 2 Improvement “et I Aporoplas Es | ” Purification hana
Slide 26: Mexico, Peru, USA, Central America, Argentina, Brazil
MEXICO PERU • • • • • • USA CENTRAL AMERICA • • • • • • ARGENTINA BRAZIL • • • • •
Slide 27: Improve discipline in Capital Allocation
Corporate Presentation Improve |discipline in Capital Allocation Resource allocation for: Qo Organic growth | —— &S norganic growth Share buybacks Dividend Payment Debt Payment Coherence matrix approach Process: Y > PSO es BS Project proposal Evaluation IRR > WACC Validation and approval anil Quarte
Slide 28: What's next for Rotoplas?
Corporate Presentation What's next for Rotoplas? Growth Avenues Water-as-a-service Platform potoplas: Acuantia ACUANTIA = Acuantia Sy =-Double digit-ROIC > WACC ~ “(20%'s Neighborhood) Launching of new solutions Synergies between operations D&A Platforms
Slide 29: Ahead of plan in sales 22% CAGR vs. 14-15% planned
~ Ahead of plan in sales 22% CAGR vs. 14-15% planned • •
Slide 30: Sales growth, Adj. EBITDA Margin, Net Debt, ROIC
Zz rotop!as: Sales growth Adj. EBITDA Margin Net Debt / Adj. EBITDA ROIC = 32
Slide 31: Strong Financials
Corporate Presentation Zz /potoplas:. STRONG FINANCIALS With a sustainable focus 33
Slide 32: Continuous growth, double-digit margins: Sales and EBITDA
Corporate Presentation. Spear ©) Continuous growth ©) Double-digit margins (Q)Strong Management * Mexico — 45 years * Central America — 23 years * Peru — 21 years * Argentina - 21 years * Brazil — 20 years * USA-— 5 years Sales Zz /potoplas:. 7.2X 1,769 1,980 2.161 2Al' CAGR: 13.2% v 12714 10,915 8,
Slide 33: 2022 Results
Corporate Presentation 2022 Results oplas.. MXN mm c top" [>) = Mexico Sales per $12,774 EBITDA per CAPEX per $659 @ Argentina Country Country Country = USA = Other 80% 2022 2021 A %/bps Net sales {12,774 |{ 10918 || 17% | Cash Conversion Cycle coGs {7339 || 676 || 8% | 73 days ns 5 : Inventory Days
Slide 34: Sound Financials
Corporate Presentation Sound Financials /potop!2s:- MXN mm Debt Maturity Profile Strong Balance Sheet to support growth December 202 $4 billion f th Cash and Cash Equivalents 673 illion from the A Nl issuance of our b Other Asssets sustainable bond TotalAssets [12,528 AGUAI72X Liye Debt Other Liabil
Slide 35: ROIC vs Cost of Capital
Corporate Presentation. | ROIC vs Cost of Capital | /potopls:. ROIC-WACC spread exceeds earnings 174% guidance —®ROIC —®WACC ROIC: NOPAT LTM/Average Invested Capital t, 1. Invested Capital: Total Assets - Cash and Cash Equivalents — Short-Term Liabilities. ROIC excludes Flow program execution costs
Slide 36: Thank you!
Corporate Presentation E= /potoplas:. Thank you! INVESTOR RELATIONS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com 38
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