Grupo Rotoplas Sab De Cv · BMV:AGUA
Grupo Rotoplas Sab De Cv — Investor Presentation (May 2022)
45 slides from Grupo Rotoplas Sab De Cv's investor presentation, May 2022
Slide 1: Corporate Presentation
1 Fpotop!8:. Q Grupo Rotoplas Bo. de CV. 22
Slide 2: Forward-looking statements
Corporate Presentation Zz /potop!s:. 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 Rotop
Slide 3: In Rotoplas we are more and better water
Corporate Presentation E= Fpotoplas:. 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 4: 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 5: Water: providing solutions, where we are going, strong financials
Corporate Presentation WATER PROVIDING SOLUTIONS WHERE WE ARE GOING STRONG FINANCIALS Dow Jones Sustainability Indices In Collaboration with RobecoSAM «@ rotoplas:
Slide 6: Water: A nascent industry of opportunities
Corporate Presentation E, top!as:. Ro WATER A nascent industry of opportunities
Slide 7: Water Demand
Corporate Presentation Water Demand A Population Growth 2020 2050 Rural 3.0B.....3.0B Total 7.0B 10.0B The demand for water for non-agricultural uses increases 2.5x faster than the population General population will grow by an average of 77 million people in the next 20 years Source: Estudio Water F
Slide 8: Water Challenges for Humanity
Corporate Presentation | Water Challenges for | Humanity 2.4 billion 2/3 people worldwide of the world’s population live without access to live in areas that have water scarcity adequate sanitation services at least once a month @eeoeeoe aea0aaa 2200000 S8aaad TuvUuvW Market Size & Dynamics $ USD 78
Slide 9: Case Study — Mexico City
Corporate Presentation Case Study — Mexico City ior “Nowadays, 40% of inhabitants have problems Pay Awl regarding water access and quality” Bringing water in and out of the city -2,240m altitude- is energy intensive and very expensive Poor quality i : i Renewable water in Mexico will i.e. Nowadays i
Slide 10: 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. UN Global Land Outlook Source: World Resources Institute (WRI) /potoplas. AP. General
Slide 11: Water scarcity news in Mexico
Corporate Presentation SI ~_ Monterrey has no waterarid the . .. . nightmare has already started in one Companies are draining Mexico's water of Mexico's largest cities supply amid drought: Activists “Save it's up to you”: water cuts begin in the state of Nuevo Leon Faced with the drought that the e
Slide 12: Water regulation in Brazil
Corporate Presentation. 7 Water regulation in Brazil Ess /potop!2s:. Law 14.026/2020 | "Marco Legal do Saneamento" By 2033 the operating companies must attend 99% of the population with treated water and 90% with water from rainwater harvesting and treatment. The estimated investment of $520 bn BRL
Slide 13: Providing Solutions: Market leaders
Corporate Presentation PROVIDING SOLUTIONS Market leaders
Slide 14: 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 1Q22 Water Market Leader 14 countries (14x)! 68,000+ points of service 3,300+ employ
Slide 15: Points of service and points of sale
points of service points of sale
Slide 16: 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 17: Portfolio
Corporate Presentation /potopl9s.. Portfolio 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 Plants Water
Slide 18: Favorable Growth Drivers | Tailwinds
Corporate Presentation Favorable Growth Drivers | Tailwinds /potop! PRODUCTS SERVICES as... ny mes 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 econ
Slide 19: Competitive Advantages
Corporate Presentation Competitive Advantages a - Value BRAND RECOGNITION - Quality - Social Responsibility /potoplas-. + Focus on ESG (Environmental, Social & Governance) - Operational excellence in our processes ROTOPLAS PROCESSES backed by a SAP platform + Customer Centric culture - Strategy with
Slide 20: ESG focus
Corporate Presentation ESG focus Q QQ +28,300 hrs! training collaborators on human rights, processes, health and safety, among other topics +9,500! plumbers trained { CORPORATE TAL ad GOVERNANCE feXe) a. BOINS +1,153,0002 i n children benefited ENVIRONMENTAL .* SUSTAINABILITY , MODEL +70% energy fro
Slide 21: 360º Value generation
Corporate Presentation 360° Value | 2021-2025 Sustainability Strategy 360° stakeholder 360° VALUE impact _—- — ——_-— a Dn = __ pwalabillty and collection y /: \ Jo STAKEHOLDER Imp, / ——» Employees \ Se | 5 Clients and users \ —> Suppliers ATED 4 = TE financial } J ¢ Boosting talent aaa eae \ ——> Aut
Slide 22: Results and Targets | ESG
Corporate Presentation. Results and Targets | ESG @ lroSer 2021 Suppliers evaluated with ESG criteria Customer Satisfaction (NPS Score) 67 @anet CO, intensity - Scope 1 and Scope 2 0.48 per ton of processed resin m3 of water treated by our solutions 164K (cumulative) Oleople People with access to wa
Slide 23: Climate Change Strategy
Corporate Presentation Climate Change Strategy Lf /potoplas:. Seeks to mitigate risks and capitalize on opportunities raised by climate change for Rotoplas and its stakeholders , & fe End user | Financial Employees Community & x BOD Distribution | etenes chain a > Q g 2 \/ os aes is Z “Suppliers Mul
Slide 24: Climate Change Strategy: Main initiatives
Corporate Presentation Climate Change Strategy Main initiatives] energy & materials circularity : ee) « Renewable energy supply - solar panels - a) --« Incorporation of recycled resins (own and third party) —, -..« Development of blow-molding process for the manufacture of water tanks, more efficien
Slide 25: Sustainability Organizational Structure
Corporate Presentation 7 Sustainability Organizational Structure potop!as:. The Sustainability Committee is responsible for promoting, coordinating and monitoring the different initiatives related to the Sustainability Model and the Sustainability Strategy. It has a multidisciplinary structure and r
Slide 26: Best Corporate Governance Practices
Corporate Presentation. . Agotoplas-. Best Corporate Governance Practices rotop!as: Board of Directors ¥/44 Our board of directors: Compensation Committee Committee 3/3 Transparency > 57% Independent Members Se Diversity > S international Board Members — Innovation -_—> Represented by 4 different ge
Slide 27: Where we are going: Growth and value opportunities
/potoplas: -WHERE WE ARE GOING Growth and value opportunities
Slide 28: 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 29: FLOW
Corporate Presentation. FLOW | — 2021 2020 2019 == a + Plan design * Construction of platform and processes * Execution of initiatives * Successful transformation * Economic value creation Demonstrate sustainability of the transformation Maintain pace of creation and execution of initiatives * Susta
Slide 30: Cross selling opportunities
Corporate Presentation Cross selling opportunities Hi Mature market | | Expanding market |_| Emerging market Plan fp Explorar a Storage | -Acuantia. ss P scrons Aporoplas | Aporoplas | Aporoplas E oO ra Waterflow | Ee qubopls | qubopls jz ‘agains oe) a Improvement Acuantia. ll Fporoplas Agotoplas Es
Slide 31: Mexico, Peru, USA, Central America, Argentina, Brazil
MEXICO PERU • • • • • • USA CENTRAL AMERICA • • • • • • ARGENTINA BRAZIL • • • • •
Slide 32: Improve discipline in Capital Allocation
Corporate Presentation Improve} discipline Resource allocation Qe Organic growth ay . . . Vg in Capital Allocation /potop! for: x) 3 © eas L.—J Inorganic growth Share buybacks Dividend Payment Debt Payment Coherence matrix approach Process: Y > © See BS Project proposal Evaluation IRR > WACC Validat
Slide 33: What's next for Rotoplas?
Corporate Presentation What's next for Rotoplas? — Double digit ROIC > WACC Growth Avenues Water-as-a-service Platform SYtOsa.g9| se rieggo ACUANTIA BIOROCK WASTEWATER TREATMENT Launching of new solutions Synergies between operations D&A Platforms
Slide 34: Expected 2025 revenue mix and margins
Corporate Presentation PRODUCTS 12-14% 12-14% Mexico 10 -12% 10 - 12% Argentina 12 - 14% 9-1% USA 29 - 31% 44-46% | Other 1S - 17% 15-17% Exp ecte Cl SERVICES 30 - 32%” margin > 20% TOTAL 14-15% 16 - 18% " Revenues 2025 orner 10% Services Argentina 20% 2x revenue 20% Adj. EBITDA Margin >20% Products
Slide 35: Guidance
Zz rotoplas: Sales growth Adj. EBITDA Margin Net Debt / Adj. EBITDA ROIC = 35
Slide 36: Rotoplas Commitments
Corporate Presentation ROTOPLAS COMMITMENTS Froroplas:. Jo 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 To promoting society’s well-b
Slide 37: Strong Financials
Corporate Presentation STRONG FINANCIALS With a sustainable focus
Slide 38: 1Q22 | Sales
1Q22 | Sales Changes in families spending prioritization | Decrease in government support Most home repairs were made during social distancing Distributors anticipated purchases in 4Q21 due to price increases Fporop!as.. WATER SOLUTIONS Pandemic changed consumer behavior in 2021 DEMAND Argentina 34%
Slide 39: Gross margin, EBIT & EBITDA margin
GROSS MARGIN EBIT & EBITDA MARGIN MEASURES 39
Slide 40: Continuous growth, double digit margins
Corporate Presentation. pS ©) Continuous growth (0)Double digit margins (Q)Strong Management * Mexico — 41 years * Central America — 23 years * Peru — 21 years * Argentina - 21 years * Brazil — 20 years * USA-— 5 years = S.., 5 /potoplas:. 6.4x CAGR: 12.2% 10.915 i 140, 7859 7,790 © ae 6,660 4680 5.
Slide 41: 1Q22 Results
Corporate Presentation [as... 1922 Results Ae top! a aw = Mexico Sales per $2,660 EBITDA per CAPEX per | $129 # Argentina Country Country Country = USA = Other 1Q22 1Q21 A %/bps Net sales [2,660 _||_2.434 || 9% | Cash Conversion Cycle Cost of Sales { iso2 || 1428 || 1% | 88 days 2 {1068 || 1006 || 6
Slide 42: Sound Financials
Corporate Presentation Sound Financials /potop!2s:- MXN mm Strong Balance Sheet to support growth Debt Maturity Profile March 2022 Cash and Cash Equivalents 1,443 $4 billion from the Other Asssets 1,370 sustainable bond 6 Debt 4,094 AGUA 17-2X owe Other Liabilities 2,247 2022 2027 Equity 6,472 Inter
Slide 43: ROIC vs Cost of Capital
Corporate Presentation. ay | ROIC vs Cost of Capital | /potoplas:. “ ROIC above WACC _ 174% 9 33% soy ; 14.5% 0% 125% 129% 12.4% 1310% 12N% 12.3% 05%, 210% ° 71.0% 100% 9.8% 1% 13% 13% ZV OHOO NH OLKVOR EER ODDDAAAARSS OO foo CMO M© emo MoM© Meo Momo Mmomemememememomem~—~ Mais) AFTAMNMTHENHRTHNMTHEN
Slide 44: Analyst consensus: BUY recommendation
Corporate Presentation Analyst consensus: BUY recommendation with an average target price of $42.72 Apalache Jorge Placido Jorge.placido@apalache.mx BTG Pactual Mariana Cruz mariana.cruz@btgpactual.com GBM Liliana de Leon Ideleon@gbm.com Miranda ESG Marimar marimar.torreblanca@miranda- Torreblanca p
Slide 45: Thank you! Investor Relations
Corporate Presentation E= /potoplas:. Thank you! INVESTOR RELATIONS Mariana Fernandez Maria Fernanda Escobar mfernandez@rotoplas.com mfescobar@rotoplas.com 48
Grupo Rotoplas, S.A.B. de C.V. — Investor Presentation (May 2022) on 6ix