Earnings Presentation 4 th Quarter 2019 1 Disclaimer This - - PowerPoint PPT Presentation

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Earnings Presentation

4th Quarter 2019

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

2019 Highlights

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2nd Highest Reported EBITDA in Alpek’s history (U.S. $850 million) Comparable EBITDA exceeded 2019 Guidance figures

• U.S. $722 million vs. U.S. $718 million

Finalized sale of Cogeneration plants for U.S. $801 million in 2019 as expected Strong financial improvement as Leverage reduced to 1.6x Net Debt to EBITDA Improved PTA/PET capacity balance & 1st expansion outside of Americas through acquisition of 350K PET facility in Wilton, UK

4Q

Relevant References: Crude Oil

Crude Oil prices remained stable during 4Q19

Brent Crude Oil Price

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

4 Source: Bloomberg

Guidance 68

Relevant References: Paraxylene

Px prices were stable during 4Q19

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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 1,077 955 937 500 1,000 1,500 2,000 2Q 2015 3Q US$/Ton 2Q 2013 2011 2012 2014 1Q 2Q 3Q 4Q 1Q 4Q 1Q 3Q 4Q 1Q 2Q 3Q 4Q 2016 2017 2018 2019

Source: IHS

NA Px Contract Price

US$22/ton increase from Sep.’19 to Dec.’19

Relevant References: Integrated PET Margins

’19 Avg. of U.S. $306/ton exceeded guidance, but declined in 4Q

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200 74 69 69 62 58 71 64 63 60 72 80 81 104 133 135 117 110 155 140 82 193 174 186 208 165 153 189 148 147 180 204 184 202 238 346 242 215 214 214 164 145 100 200 300 400 500 600 2014 4Q US$/Ton 2012 1Q 2011 2013 2015 263 2Q 248 3Q 1Q 2Q 4Q 3Q 4Q 277 1Q 478 2Q 3Q 342 1Q 2Q 3Q 4Q PET 260 393 211 255 324 227 PTA 210 240 276 284 212 333 370 304 227 377

China

2016 2017 2018 2019

Asian Margins (Px / MEG to PET)

Source: ICIS, PCI, CCFGroup

Relevant References: Propylene & Polypropylene

Slight decrease in both PGP contract prices & PP margins in 4Q19

7 Source: IHS

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

12 12 13 15 24 27 19 20 22 23 23 22 22 21 20 2 4 6 8 10 12 14 16 18 20 22 24 26 28 14 13 cpp 11 3Q 17 12 16 15 1Q 2Q 4Q 1Q 2Q 3Q 4Q 2018 2019 76 60 69 71 39 34 45 53 52 60 51 38 37 38 35 10 20 30 40 50 60 70 80 2Q 14 12 3Q cpp 11 17 13 16 15 1Q 2Q 3Q 4Q 1Q 4Q 2018 2019

EBITDA

2nd highest Reported EBITDA in Alpek’s history

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181 239 274 149 140 161 194 167 220 188 170 181 172 4Q18 1Q18 218 3Q18 148 189 2Q18 1Q19 234 2Q19 Reported EBITDA 213 3Q19 4Q19 369 356 +83% 843 662 220 188 804 1,063 2018 722 2019 850 Badwill PQS

Alpek EBITDA (US$M)

2018 2019

(1) Raw Material Carry Forward

Comparable EBITDA Comparable EBITDA exc. RMCF1 CoGen Sale

EBITDA Breakdown

Better than expected margins in both segments offset by Px price drop

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52 11 46 46 42 167 4Q19 Comparable 6 122 RMCF1 123 6 Inventories 4Q19 Reported Others

Polyester

P&C Polyester 4Q19G 188 135 173 172 4Q19 Comparable (w. RMCF)1 Others 1 2 2

P&C

125

Others Others

EBITDA 4Q19 vs. 4Q19G

(US$M)

EBITDA 2019 vs. 2019G

(US$M)

(1) Raw Material Carry Forward

190 41 231 67 231 68 218

Polyester

512 2019 Comparable (w. RMCF)1

P&C

9 29 Polyester 541 RMCF1 474 P&C 789 428 2019 Reported Others 11 Inventories 2019G Others 2019 Comparable 718 722 662

Raw Material Carry Forward Effect (RMCF)

Comparable EBITDA + RMCF1 almost matched 2018 record figures

10 (1) Raw Material Carry Forward: Effect on margin generated from price change to raw materials between purchase vs. actual consumption. Positive or negative depending on price change (2) Excludes PQS Badwill (3) Excludes Cogeneration plants’ sale

2019 2018 Delta US$M 1T 2T 3T 4T2 Total 1T 2T 3T 4T3 Total 1T 2T 3T 4T Total Reported EBITDA 140 161 194 167 662 181 239 274 149 843 (41) (78) (80) 18 (181) Inventory Adjustment (19) (27) (16) (6) (68) 16 20 33 (28) 41 (35) (48) (49) 22 (109) Others 11 (1) (3) 1 9 (5) 1 7 (4) (2) 16 (1) (10) 5 10 Comparable EBITDA 148 189 213 172 722 170 218 234 181 804 (23) (29) (21) (10) (82) Raw Material Carry Forward (19) (28) (18) (2) (67) 11 9 (18) 2 4 (30) (36) (1) (4) (70) Comparable EBITDA + Raw Material Carry Forward 167 217 231 173 789 160 210 251 179 800 7 7 (20) (6) (11)

Leverage

Net debt reduced by U.S. $706 million resulting in 1.6x leverage levels

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

407 564 834 1,063 1,022 944 864 850 1Q18 2Q19 4Q18 2Q18 1Q19 3Q18 3Q19 4Q19 3.1 2.9 1.9 1.7 2.2 2.2 2.4 1.6 3Q18 2Q18 1Q18 4Q18 2Q19 1Q19 3Q19 4Q19 1,270 1,637 1,603 1,832 2,200 2,084 2,036 1,330 3Q18 1Q18 2Q18 3Q19 4Q18 1Q19 4Q19 2Q19

495 550 718 167 172 4Q19 YTD Sep19 2019 Reported EBITDA Net Extraordinary Items 2019 Comparable EBITDA 2019 Guidance (ex- Cogen Sale) 60 662 722 +4

2019 Guidance

Alpek met its Comparable EBITDA Guidance for 2019

12 (1) Raw Material Carry Forward

Alpek Comparable EBITDA Guidance (US$M)

US$68M inventory losses US$789M including RMCF1

Alpek EBITDA Guidance + CoGen (US$M)

722 718 188 200 CoGen Sale 2019 2019 Guidance Comparable EBITDA 910 918

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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
• BA 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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