Earnings Presentation 3 rd Quarter 2019 1 Disclaimer This - - PowerPoint PPT Presentation

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Mar 13, 2024 314 likes •471 views

Earnings Presentation 3 rd Quarter 2019 1 Disclaimer This presentation contains, or may be deemed to contain, forward -looking statements . By their nature, forward looking statements involve risks and uncertainties because they relate to

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Earnings Presentation

3rd Quarter 2019

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This presentation contains, or may be deemed to contain, “forward-looking statements”. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. The future results of Alpek, S.A.B. de C.V. and its subsidiaries may differ from the results expressed in, or implied by the forward-looking statements set out herein, possibly to a material degree.

Disclaimer

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3Q19 Highlights

3Q19 EBITDA results show strong quarter-on-quarter improvement 2019 YTD Comparable EBITDA on track to meet 2019 Guidance Altamira Cogeneration plant obtained all permits for commercial operations in September

Currently operating & serving customers / Sale expected to be finalized before year-end

Issued 10-Year US$500M bond at 4.25% coupon

Lowest spread in Alpek’s history / Debt maturity improved from 2.7 to 4.9 years

Joined The Recycling Partnership to increase PET circular economy efforts & awareness

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Relevant References: Crude Oil

Strong fluctuations due to US-China trade war & Saudi refinery attack

Brent Crude Oil Price

53 44 54 71 64 20 40 100 60 80 120 Guidance 68 US$/Bbl Avg. 99 2014 2015 2016 2017 2019 2018

4 Source: Bloomberg

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Relevant References: Paraxylene

Slow-down in Px price drop during 3Q19 & stable prices since August

1,708 1,635 1,641 1,382 992 829 898 878 900 989 924 924 977 1,056 1,100 1,258 1,282 1,165 1,077 955 500 1,000 1,500 2,000 2Q US$/Ton 2014 2011 1Q 2015 2012 2013 4Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2016 2017 2018 2019

Source: IHS Markit

NA Px Contract Price

Only US$55/ton drop throughout 3Q19

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Relevant References: Integrated PET Margins

Margins remained above both Guidance (US$300/ton) & 1Q19 levels

200 74 69 69 62 58 71 64 63 60 72 80 81 104 133 135 117 110 155 140 193 174 186 208 165 153 189 148 147 180 204 184 202 238 346 242 215 214 214 164 100 200 300 400 500 600 2Q

263

US$/Ton 2015

211

2012 2013 2014 1Q 3Q 4Q 1Q 2Q 3Q 3Q 4Q

324

3Q 1Q 2Q

260

276

342

2Q PET PTA

393 248 333 255

2011

227 212 210 240 277 284 478 377 304 370 China

2016 2017 2018 2019

Asian Margins (Px / MEG to PET)

2018 results benefitted from extraordinary margins

Source: ICIS, PCI, CCFGroup

Sep. posted

US$260/ton

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Relevant References: Propylene & Polypropylene

Slight margin reduction but still above Guidance (21cpp)

7 Source: IHS Markit

NA Propylene Contract Price (PGP) NA Polypropylene Margin (PGP to PP)

12 12 13 15 24 27 19 20 22 23 23 22 22 21 2 4 6 8 10 12 14 16 18 20 22 24 26 28 17 13 15 cpp 11 12 14 16 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2018 2019 76 60 69 71 39 34 45 53 52 60 51 38 37 38 10 20 30 40 50 60 70 80 13 4Q 15 1Q 12 cpp 17 2Q 11 14 16 3Q 1Q 2Q 3Q 2018 2019

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EBITDA

3Q19 with continued operational strength & lower inventory losses

181 239 274 149 140 161 194 170 234 181

2Q18 1Q18 1Q19

369 218 148

3Q18 4Q18

189

2Q19

213

3Q19 Comparable EBITDA Reported EBITDA Comparable EBITDA (exc. RMCF)1 +13%

694 495 622 550

YTD19 YTD18 Badwill PQS

Alpek EBITDA (US$M)

2018 2019

(1) Raw Material Carry-Forward

220

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EBITDA Breakdown

2019 YTD Comparable EBITDA currently exceeding Guidance

53 26 12 65 18 65 16 60 163 3 Others P&C 231 Polyester YTD19G YTD19 Comparable (w. RMCF)1 136 RMCF1 YTD19 Comparable Inventories 3 Others 129

P&C Polyester

190 YTD19 Reported 144 213 194

Others

137 47 184 65 185 63 175 Others 351 Inventories 7 RMCF1 29 550 388 YTD19 Comparable 495 YTD19G Polyester 541 615 YTD19 Reported P&C Others 9

P&C Polyester

305 417 YTD19 Comparable (w. RMCF)1

Others

EBITDA 3Q19 vs. 3Q19G

(US$M)

EBITDA YTD19 vs. YTD19G

(US$M)

(1) Raw Material Carry-Forward

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Leverage

Debt reduction offset by lower LTM EBITDA as ‘18 margins phased out

Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times)

407 564 834 1,063 1,022 944 864 1Q19 2Q18 1Q18 3Q18 4Q18 2Q19 3Q19 3.1 2.9 1.9 1.7 2.2 2.2 2.4 3Q18 1Q19 1Q18 2Q18 2Q19 4Q18 3Q19 1,270 1,637 1,603 1,832 2,200 2,084 2,036 1Q18 2Q18 3Q18 4Q18 3Q19 1Q19 2Q19

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Debt Profile

Issued 10-Year US$500M bond improving debt maturity to 4.9 years

309 96 309 300 250 500 650 100 200 300 400 500 600 700 800 900 2019 US$M 2029 Cash 2020 2024 2021 2022 2023 2025 2026 2027 2028 691 Existing Bonds

(1) A small portion of debt is denominated in ARS (2) Excludes leases, documents and accrued interests

Consolidated Debt Profile (Sep. 2019)

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301 337 918 194 213 168 200 Reported EBITDA 3Q19 Net Extraordinary Items 36 19 Comparable EBITDA 4Q19 EBITDA (To Meet Guidance) Cogen Sale (Estimate) 2019 Guidance 1H19 495 55 550

Guidance

YTD Comparable EBITDA on track to meet Guidance

Alpek Guidance & Progress Towards

US$63M inventory losses US$615M including RMCF1

(1) Raw Material Carry-Forward

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For Additional Information

IR@alpek.com / +52 (818) 748-1146

7 Years at Alfa/Alpek
Previously held roles in Human Resources, Talent & Culture at Alfa and Axtel
BS in International Relations from ITESM

Alejandra Bustamante IR Manager

abustamante@alpek.com

8 Years at Alfa/Alpek
Previously held roles as Director of Logistics & Procurement at Indelpro, Director of Energy Markets at

Alfa, and Project Leader at The Boston Consulting Group

BS in Industrial Engineering from Cornell University and MBA from Stanford Graduate School of Business

Alejandro Elizondo IRO

aelizondo@alpek.com

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