SECOND QUARTER 2021 CORPORATE PRESENTATION
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
SECOND QUARTER 2021 CORPORATE PRESENTATION
Index
Alpek at a Glance
Key Investment Highlights
Financials
Relevant Events
The Case for PET
Appendix
2
Alpek is a large component of ALFA’s portfolio of companies
Alfa posted US$12.3B in Revenues & US$1.5B in EBITDA1
Petrochemicals Food Products IT + Telecom
EBITDA1
37% 45% 20%
(% Alfa)
8 out of 10
#1 Producer of PTA, 11 Sigma brands
Mexican Corporates use
PET, rPET, EPS & sell more than
Axtel’s IT and Telecom
ARCEL® in the Americas US$100M a year each
services
18
18% 19% 53%
%
28%
82
82% 100
% %
Alfa Publicly traded Other Privately Held
(1) Nemak has discontinued operations. Figures as of December 31, 2020 3
Source: Alpek
Alpek is one of the largest PetChems in The Americas
Strong portfolio of resilient products across two main segments
’20 Comparable Dec. ’20 Net Debt /
’20 Revenues1: US$5.3B US$601M 2.1x
EBITDA1: Reported EBITDA1:
Polyester (75% Sales)2 Plastics & Chemicals (22% Sales)2
PTA, PET Polyester Polypropylene Expandable Styrenics Caprolactam Specialty Chemicals
& rPET Fibers (PP) (EPS & ARCEL®) (CPL) & Fertilizers
(1) Figures for the year ended December 31, 2020;
(2) Sales revenue for the year ended December 31, 2020; additional 3% represented by other small business
4
Source: Alpek
Our footprint now spans 32 plants across 7 countries
Over 8.2 million tons and more than 6,300 employees worldwide
Installed capacity breakdown (Kta)
rPET
Country Site PTA PET Flake Pellet SPT Fibers PP EPS Arcel CPL Other
Monterrey 160
Mexico Altamira 1,000 640 240
(3,395 Kta) Salamanca 85 360
Cosoleacaque 610 185 15
Lerma 100
Fayetteville, NC 170 64
Charleston, SC 170 15 150
Columbia, SC 640 725
Bay St. Louis, MS 430
USA
Richmond, IN 66
(2,829 Kta)
Darlington, SC 31
Monaca, PA 123 36
Painesville, OH 45
Reading, PA 115 49
Canada
Montreal 144
(144 Kta)
Zárate 190
Argentina
Pacheco 22 15
(246 Kta)
General Lagos 19
Brazil Guaratingueta 46
(1,226 Kta) Ipojuca 640 450 90
Santiago 5
Chile Puerto Montt 2 Polyester
(28 Kta) Punta Arenas 1
P&C
Concon 20
United Kingdom
Wilton 350
(350 Kta)
Total Capacity: 8,220 Kta 2,890 2,814 268 95 31 400 640 493 36 85 468
Note: rPET flake capacity modified in 2Q21 to reflect inputs / totals may reflect rounding.
5
Kta: Thousand tons per year
Source: Alpek estimates
Index
Alpek at a Glance
Key Investment Highlights
Financials
Relevant Events
The Case for PET
Appendix
6
Investment Highlights
1 Market leadership across all our products in the Americas
2 Consumer-oriented product portfolio limits demand volatility
3 Proven track record of growth across all parts of the cycle
4 State-of-the-art technology resulting in low-cost position
5 Clear strategy & catalysts executed by experienced management team
6 Portfolio uniquely placed to lead growth of circular economy
11. Market Leadership
Alpek holds leading industry positions for all its products
Polyester Industry Position1 by Product P&C Industry Position1 by Product
PTA 1 The Americas PP 1 Mexico
1 The Americas
Expandable
1 The Americas
PET
Styrenics
2 Worldwide 3 Worldwide
rPET 1 The Americas CPL 1 Mexico
PSF2 2 The Americas
(1) Industry position is based on installed capacity and reflects market position as of December 31, 2020. (2) Polyester Staple Fiber (excluding filaments)
8
Source: PCI and Alpek estimates
11. Market Leadership
Alpek is the largest PTA-PET producer in Americas
Market has consolidated & become increasingly organized over time
The Americas PTA Capacity Share (%) The Americas PET Capacity Share (%)
7,240 6,781
Kta 9% Others Kta 7% Others
6,190 5,681 8%
5,940 5,494 M&G
14% 19% BP 8% 11% FENC
16% 10%
24% 6%
23%
25% Indorama 27% 33% Indorama
24% 32%
27%
24%
46% 42%
49% 43%
36% 34%
2015 2020 2025E1 2015 2020 2025E1
(1) Includes
Kta: Thousands
CC Polymers
tons per year 9
Source: Alpek
Wood &Mackenzie
Wood Mackenzie
21. Consumer Oriented Portfolio
Resilient end-markets account for 92% of volume
97% of Alpek’s sales are dollar-based
Volume by Industry 20201 Sales Geography 20201
Textiles 4% Construction 4% EUR 6% Asia 0.4%
92%
71%
SA 22%
Consumer Goods 25% USA/CAN 42%
Volume 2020 Sales 2020
4,802 Kta US$5,326 M
Food & Beverage 67%
MEX 29%
Sample End Users by Industry
Beverage Food Personal Care Textiles
(1) Volume and sales breakdown for data for the year ended December 31, 2020.
10
Kta: Thousand tons per year
Source: Alpek31. Proven Growth
Alpek has continued growing at 8.6% CAGR since 1986
Constant growth at different points of the industry cycle
Sales Volume 1986-2020 (Index: 1986 = 100)
rPET
PET acquisition
acquisition
in UK
Polyester
acquisition Corpus Christi
IPO (BMV)
U.S. PTA/ in Brazil Polymers (JV)
PET plant
acquisitions
Styrenics
rPET
EPS Acquisition
Acquisition
capacity in USA
in USA
expansion First power
First U.S.
(JV) cogeneration
polyester
plant plant
acquisition First
recycling
plant (JV)
CPL plant
acquisition
Acquisition
of first PTA
plant
DMT
Expansion
PP plant
start-up (JV)
´86 ´93 ´98 ´03 ´08 ´13 ´18 ´20 ´21 ‘25
11
Source: Alpek41. Low-Cost Position
State-of-the-art tech, strategically located assets & low-cost
logistics yield low-cost position in industry
Continuous investment in own technology has World scale production facilities make Alpek the
improved Alpek’s cost position (i.e. IntegRex) low-cost producer in The Americas (i.e. PP)
Steps eliminated with IntegRex®
Precursor
Oxidation Feed prep Esterification
Preheating
Margin
Post-Oxidation Hydrogenation Pre-Poly Crystallization
Crystallization Crystallization Polymerization Annealing
80% of Market
Filtration and Filtration and Solid State Participants
Pelletization
Drying Drying Polymerization
Precursor
CTA Storage PTA Storage PET Resin
Storage
Cost
12
Source: Alpek, Philip Townsend51. Strategy & Mgmt. Team
Long-term strategy is based around 3 key pillars
1351. Strategy & Mgmt. Team
Mgmt. with 30+ years average experience in PetChem
Clear strategy & culture of empowerment ensure efficient operations
José de Jesús Valdez
CEO (45)
José Carlos Pons
CFO (25)
Felipe Garza Jorge Young Gustavo Talancón Alejandro Llovera José Luis Zepeda Gustavo Talancón
Co-President Co-President President President President President CPL &
Alpek Polyester (44) Alpek Polyester (31) Polyester Filament (32) Polypropylene (36) EPS & Chemicals (35) Ammonium Sulfate (32)
Polyester Plastics & Chemicals
(#) Years with Alfa/Alpek 14
Source: Alpek61. Portfolio prepared to lead in circular economy
Our strong innovation efforts are focused on circular
economy initiatives and process improvements
In-house • Process simplification & cost reduction to Integrex
Innovation PTA/PET production process
(Examples)
• Organic fertilizer production from bio-mass organisms
• Chemical recycling processes from PET back to BHET &
MEG and EPS back to Styrene
Open • Structured collaboration with start-ups to identify and
Innovation monetize innovation trends related to our business
Initiative
• Extended reach beyond in-house innovation
• Reduced time-to-market for new products
• Increased efficiency of R&D capital allocation
1561. Portfolio prepared to lead in circular economy
Alpek strives to continue improving its ESG performance
Reaffirmed commitment to ESG by joining UN Global Compact in 2021
CDP ESG Ratings Sustainalytics ESG Ratings CSA Ratings
2019 2020 54 2019 2020
Risk
B- 32 29
Rating 43 44
C 35
31 32 30
28
D Manageable
68 71
Risk
D-
Climate Change Water 2020 2021 Env. Soc. Gov. Total
NA D B Chemicals Risk Percentile ‘19 31
31 25
Percentile
Chemicals C B Percentile ‘20 66
Company recognized by as 2 Best ESG in its segment
16Progress in ESG already yielding results
• Strong improvement in Alpek’s 2020 ESG performance & ratings
• Alpek was added to BMV / S&P DJI Total Mexico ESG Index
• Participants’ commitment to ESG translates into higher returns
CO2 Emissions (M Tons) Water Consumption (M m3)
-8.7% -7.7%
2.42
2.21
Scope I 0.80
0.77
21.6 19.9
Scope II 1.62 1.44
2019 2020 2019 2020
17Index
Alpek at a Glance
Key Investment Highlights
Financials
Relevant Events
The Case for PET
Appendix
18Recent Financial Results
Sales Volume (KTon) Revenues (US$M)
4,802 6,991
4,402 4,384 6,216
4,012
5,231 5,326
P&C Others
2,431 P&C
2,293 3,463
2,608
Polyester
Polyester
2017 2018 2019 2020 YTD20 YTD21 2017 2018 2019 2020 YTD20 YTD21
Reported EBITDA (US$M) CAPEX (US$M)
1,063 1,038 826
220 188
Suape/
800 789 Citepe &
565 CCP
601 35
Comparable
excl. RMCF
462 843 850 429 270
236
530 296 597 162 162
384 Nova CarbonLITE
185 42
2017 2018 2019 2020 YTD20 YTD21 2017 2018 2019 2020 YTD20 YTD21
% Sales 7.3% 15.2% 13.7% 10.6% 7.1% 17.3% 19Free Cash Flow Generation
US$M 128 11 1,247
1,219 273
132
32
25
6
FCF: US$ 90M
Net Debt EBITDA NWC Financial Taxes CAPEX Dividends Others Net Debt
Mar’21 Expenses Jun’21Net Debt & Leverage
Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times)
1,428 2.0 2.0 2.0
1,247 1.9
1,235 1,219
1,185 1.7
733
701
657
623 601
977 2.1
1.9
778 1.7
735 719 1.6
565 1.3
2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21 2Q20 3Q20 4Q20 1Q21 2Q21
Comp. EBITDA Net Debt / Comp. EBITDA
21Balance Sheet Accounts
Net Working Capital1 (US$M) Property, Plant and Equipment (US$M)
951 2,390
2,105 2,025
774 771 1,968 1,934
608
497
NWC Days 44 43 53 44 39
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
Net Debt2 (US$M) Stockholders’ Equity (US$M)
1,832 2,391 2,486
2,193 2,281
1,262 1,330 1,247
1,185 1,604
IFRS IFRS 16
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
(1) Net Working Capital = Accounts receivable + Other accounts receivable + Inventories - Suppliers - Other accounts payable and accrued expenses
(2) Net Debt = Bank loans and notes payable + Current portion of long-term debt + Long term debt – Cash
22
Source: Alpek estimatesDebt Profile
100% of Debt denominated in USD1 / Debt average life @ 7.0 years
Available Comm.
Net Debt: US$1,247M Gross Debt: US$1,723M US$430M
Credit Lines
Consolidated Debt Profile1 (Jun. 2021)
US$M
900 Cash
800 Bonds
Bank Debt
700 Coupon
3.250%
600
600 Coupon
4.250%
500
500 476
400 Coupon
5.375%
300
300
Coupon
200 4.500%
100 94
22 32
0
Cash 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
23
(1) Excludes leases, documents and accrued interestsDividends
Alpek Dividends (US$M)
250 12
225 Paid in 2Q21
11
206
10
200 178
176 9
165 160
155 151 8
143 143 143 Total Dividend
150 128 7
114 111 Shareholders
6
100 95
100 9.6 5
4
Dividend
5.9 53 3 (%)
5.6 5.4 Yield
50
3.4 3.4 2
3.0
2.1 1
0
0 0
2013 20141 2015 2016 2017 2018 2019 20202 2021
(1) Paid in December 2013 24
(2)
(1)Showing US$143M
Paid in January Dividend in 2020 (Compensated lack of dividend in 2018)
2020Results by Quarter
Sales Volume (KTon) Revenues (US$M)
1,260 1,248 1,849
1,184 1,230 1,201
1,118 1,059 1,109 1,614
+8% 1,523
1,407 1,392 1,433
1,325
1,175
3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
Reported EBITDA (US$M) Majority Net Income (US$M)
400 209
324
231 Cogen 188
Lotte Bus. 225 121 124
Sale 203
173 Comb. 99
154 356 151 35 147 149
166 65
273 50
194 179 201
168 6
111
74
0
3Q 4Q 1Q 2Q -19
3Q 4Q 1Q 2Q
2019 2020 2021 Comparable EBITDA 25
Source: AlpekEBITDA Breakdown
2Q21 EBITDA (US$M)
273
1 3
18
+11%
29
225
3
203
136
17
149 120
1
97
46
134
102 102
89
2Q20 Comparable 1Q21 Comparable 2Q21 Comparable Carry-forward Effect Inventory Others 2Q21 Reported
EBITDA EBITDA EBITDA Adjustment EBITDABreakdown of Extraordinary Effects
2021 2020 Delta
M dls 1Q 2Q YTD 1Q 2Q YTD 1Q 2Q YTD
Reported EBITDA 324 273 597 111 74 185 214 199 413
Inventory Adjustment (63) (18) (81) 17 42 59 (80) (60) (140)
Carry-forward Effect (58) (29) (87) 20 39 59 (78) (68) (146)
Others 0 (1) (1) 0 (6) (6) 0 5 6
Comparable EBITDA 203 225 429 147 149 296 56 76 133
27Index
Alpek at a Glance
Key Investment Highlights
Financials
Relevant Events
The Case for PET
Appendix
28Alpek acquires CarbonLITE’s rPET facility
World’s largest integrated bottle-to-bottle recycling site
• Reaffirming Alpek’s position as largest rPET recycler in The Americas
• Achieves goal of supplying customers 25% recycled content by 2025
• Brand-new assets and state-of-the-art technology
• Winning bid of US$96M on a debt-free basis / Partially included in Guidance
• Strategically located asset in Reading, PA, USA to start-up operations in 3Q21
394 (+71%)
Output
164 CarbonLITE
268 (+75%) 282
115
159
95 (+105%) 230 Current
153 49
31
46
KTA
Bottle to Flake to Single Pellet Total
Flake (Input) Pellet Technology®NOVA Chemicals’ Expandable
Styrenics Business Purchase
204 529
36
ARCEL®
EPS 168
20 19 325
46
240 NOVA
KTA
MEX BRA CHI ARG Pre- USA Post-
Acquisition Acquisition
Strengthen Foster Circular Strategic &
Core Business Economy Focused Growth
✓ Global Cost ✓ Sustainable Product ✓ Value Chain Integration
Improvement Portfolio
✓ Product Innovation
✓ Value-added Products
✓ Footprint Optimization
30ALFA’s Unlocking Value Initiative
Nemak Axtel Lower Alpek
Spin-off Sale Debt Spin-off
2020 TBD TBD TBD
Alpek’s • Spin-off not expected in 2021
Transition
Plan • Working on becoming fully independent
from ALFA’s corporate services
Potential
• No impact expected to Alpek’s SG&A
Impact &
Benefits • Possibility for more shares to be publicly
traded, thus increasing share liquidity
• Strengthened Governance practices
31CCP Update
• Pre-construction period extended through end of 2021
• Stronger PET demand in NA supportive of project
• Focused on minimizing CAPEX & optimizing timing
• Front-loading engineering work & analyzing all options
PTA PET
1.3 M tons 1.1 M tons
Own Px • PET (Int.): 367 Kta
& MEG • PTA: 125 Kta
Own Px • PET (Int.): 367 Kta
& MEG • PTA: 125 Kta
Own Px • PET (Int.): 367 Kta
& MEG • PTA: 125 Kta
32Index
Alpek at a Glance
Key Investment Highlights
Financials
Relevant Events
The Case for PET
Appendix
33INDEXED GOOGLE SEARCHES 2009-2020
Every bottle ends up in the middle of the
ocean, I’ve seen the images on TV
A friend told me that glass is the most eco-
friendly option, so I always go for that if I can
Companies care more about their sales than the
environment. Just look at any supermarket aisle’
PET is #1 for a reason
100% RECYCLABLE
HDPE PVC LDPE
RECYCLED AT HIGH RATES
ONLY PLASTIC THAT CAN
BE REMADE BACK TO ITS
ORIGINAL PURPOSE
PP PS OTHERS
HOWEVER, THEY ALL GET BUNDLED TOGETHER,Although Alpek plays an important role as the largest producer
and recycler of PET in the Americas, we’re not the only ones
involved in its lifecycle.
So rather than hearing it from us, we’d like to introduce you to
some people that can better explain The Case for PET based
on how it touches their lives every day.
These are their stories.«PET is simply a
better product»
For a while now, we wanted to sell more of our berries in
the local supermarkets, but packaging was a problem. We
used carton but there were a lot of disadvantages, for
example if the package got too wet, like from the humidity
in the supermarket refrigerators, it would lose its
resistance or leave our berries exposed to mold. Also,
since it’s not transparent, it was hard to highlight the
quality of our product.
Last year though, we started working with PET packaging
and things are looking up. The package is nice and
resistant, but is also much cheaper! We are using the
savings in other parts of the business to keep growing,
but I’m not going to lie, I’ve also used it for other things
like computers for my kids homeschool and kept a couple
of dollars in my pocket at the end of the day.
5th-generation berry farmer
California, USAWith the same kilogram of material, you get: For the cost needed to produce 1 glass bottle,
you can produce up to 8 PET bottles.
x
x CENTS
x
BPA & Phthalate free, as well as the only widely Unlike glass and aluminum, PET can be transported with
available individually packaged resealable option. minimal protection as it is more resistant to damage.«PET keeps
me safe»
The current health emergency caused by the Coronavirus
has taught us many things about our life and ourselves in
a very short period of time. Something I didn’t expect to
learn was the importance of PET for us, as doctors and
patients. To me PET was just the water bottle I used when
running, but it turns out that it’s also present in many
other things, starting with the safety goggles and
facemask I must wear at work.
It’s odd how something like a virus we can’t even see
showed us how vulnerable we really are. Today I trust the
PET in those goggles and facemask to get home safely
and be with my two daughters and husband. Obviously,
we were not expecting this pandemic, but PET helped us
face it head-on.
Currently fighting Covid-19
Toronto, CANYou can easily identify PET products, just look for the
«Educating towards
smarter choices»
From my perspective there have never been more
options in terms of the products we consume every day.
I go to the supermarket and for just one thing, let’s say
orange juice, there are like 3 different packaging
options: PET, glass and cardboard.
My job is to encourage my students by exploring the
current problems we face. After doing a ton of research,
I’ve found that the general misconceptions around PET’s
sustainability are wrong. It is fully recyclable and
recycled at the same rates as its alternatives and made
without hazardous materials. More importantly, I have
the responsibility to teach my kids to dispose whichever
juice bottle they choose, to ensure it gets back to them
another day.
Elementary school teacher
Manchester, UKB E V E R A G E PA C K A G I N G I N D U S T R Y U N I T S B Y S U S T R AT E ( B U N I T S ) 2 0 0 0 - 2 0 1 9 B UNITS
98%
69%
65%
58%
46%
30%
16%
ALUMINUM GLASS OTHER
WORLDWIDE
WORLDWIDE WORLDWIDE PLASTICS«We should
think about the
big picture»
I think society has focused on solving the waste
problem, and we definitely need to solve that, but we
shouldn’t lose sight of the real problem facing our
generation: climate change. Said differently, if all we do
is recycle more, does that mean we are doing less harm
to the environment?
More and more people are doing their part, choosing
fully recyclable materials, putting garbage in the right
place, and starting action in their communities, but I
think that we should also start questioning corporations
about everything that happens before and after we as
consumers make our choice. Fixing the amount of
carbon emissions generated to make the green glass
bottle my sparkling water comes in, and how much
more will be released when it’s recycled, now that’s big
picture stuff.
College student
Sao Paulo, BR187 gr. CO
182 gr. CO 2
x
2
x
Let’s put it into 37 gr. CO
2
x
perspective»
CARBON FOOTPRINT OVER LIFECYCLE, PER 355 ML. BOTTLE.90 gr. CO
x2
Let’s put it into 31 gr. CO
2
10 gr. CO
x
perspective»
2
x
CARBON FOOTPRINT OVER LIFECYCLE, PER 355 ML. BOTTLE.IS MADE AT
TEMPERATURES HOTTER
THAN LAVA.
IS MADE AT A
TEMPERATURE HOTTER THAN THE
SURFACE OF VENUS.
IS MADE AT THE SAME
TEMPERATURE NEEDED
TO MAKE A NICE SLICE OF PIZZA.Think back to the last time you had a burger…
What if I told you, you could wash it down with
and stillThe CO2 emissions generated by
flying from NYC to San Francisco
is equal to that from recycling PET bottles«PET is my
livelihood»
I know it might not sound very attractive, but my job is
to find and separate PET from the rest of your garbage.
Why? Because certain people are willing to pay me good
money for it. There are collection points all around my
city, they buy the PET from me, and then they sell that
material to a recycling plant. I guess it’s good business
for them too, because they never stop coming for more
and more PET.
I tend to focus on PET because contrary to glass and
aluminum, I can find it easily, separate it without much
risk, and carry it since it’s so light and compactable. I
definitely don’t miss getting tetanus shots.
My work allows me to put food on the table for my
family and send my children to school, so I’m very proud
of it. It also gives me great pleasure to see the streets
clean, knowing that in some way, my effort contributed
to achieving that.
Garbage collector for 17 years
Ciudad de México, MX· Increase Recycled PET production
· Meet bottlers’ needs
· Improve Recycled PET technology
· Use higher rPET content
® · Design for higher recyclability
· Willingness to source rPET
· Promote recycling
· Promote use of lower
CO2 products
· Promote and offer
recyclable products
· Offer recycle solutions
at their locations
· Grow gathering network
· Consume responsibly
· Improve PET separation
· Recycle everything
· Improve bale quality
· Separate trash properly«We have
a clear goal»
I have proudly been part of Alpek for the last 4 years.
Sometimes I’m questioned by my family about my work
because they’ve heard negative stories surrounding
plastics. But I know that PET is unlike any other plastic.
I’m convinced that for us to achieve a true change in our
society, the first thing we need is real information, so I
actually see these discussions and questions as
opportunities to share the data I have.
I recently had the chance to log-in to a Webcast where
Pepe Valdez, Alpek’s CEO, talked about the company’s
five-year strategy. It was very focused on increasing the
amount of rPET we make, and helping meet our
customers’ goals. These type of things make me proud
to be part of the Alpek family.
Lab Analyst at Ecopek (Alpek rPET)
Pacheco, ARGAlpek is
leading the way
Today we already recycle
each year
And we’re aiming to reach
To get there, among other initiatives, Alpek has joined
associations such as to develop more trash
gathering infrastructure in major US Cities.1. Recycle! As much as you can, and not just PET, but every product you come across. 2. Promote the use of fully recyclable materials in any place: your home, your work and even in your favorite coffee shop. 3. Share your newfound knowledge about PET and recycling, to speed up our progress towards a truly sustainable future.
Index
Alpek at a Glance
Key Investment Highlights
Financials
Relevant Events
The Case for PET
Appendix
55Polyester Value Chain
Crude Oil Refinery Naphtha Reformer/BTX
PET rPET
0.84 ton PTA
per ton PET
0.66 ton PX
per ton PTA
PX PTA
0.34 ton MEG
per ton PET Fibers &
Filaments
0.80 ton Ethylene 0.72 ton EO
per ton EO per ton MEG
Ethane Cracker Ethylene Ethylene Oxide MEG
(From Natural Gas)
56
Source: Alpek, NexantPolypropylene (PP) Value Chain
1.01 ton
Propylene
per ton PP
Ethane /
Propane
57
Source: Alpek, NexantExpandable Styrenics (EPS & ARCEL®) Value Chain
Crude Oil Refinery Naphtha Reformer Pentane
0.06 ton Pentane
Benzene per ton EPS
0.79 ton Benzene
per ton Styrene
Ethylene
0.29 ton Ethylene 0.94 ton Styrene
per ton Styrene per ton EPS
Ethane Cracker Styrene EPS
(From Natural Gas)
Arcel®
Polyethylene 58
Source: Alpek, NexantCaprolactam (CPL) Value Chain
Crude Oil Refinery Naphtha Reformer
Cyclohexane Caprolactam
Benzene
0.94 ton Bz per
ton Cyclohexane
0.99 ton CX
per ton CPL Nylon
Natural Gas Syngas Ammonia Ammonium Sulfate Fertilizers
59
Source: Alpek, NexantLatest Quarter Results
Results and Key Metrics
Ch.
2Q21 1Q21 2Q20 QoQ (%) YoY (%) YTD21 YTD20
(%)
Volume1 (ktons) 1,201 1,230 1,109 (2) 8 2,431 2,293 6
Polyester 945 996 933 (5) 1 1,941 1,900 2
Plastics & Chemicals 256 234 176 9 45 490 393 25
Production (ktons) 1,526 1,621 1,587 (6) (4) 3,146 3,171 (1)
Polyester 1,240 1,346 1,341 (8) (8) 2,586 2,660 (3)
Plastics & Chemicals 286 274 246 4 16 560 511 10
Revenues 1,849 1,614 1,175 15 57 3,463 2,608 33
Polyester 1,183 1,069 925 11 28 2,252 2,020 12
Plastics & Chemicals 610 471 221 29 175 1,080 521 107
EBITDA 273 324 74 (16) 268 597 185 223
Polyester 134 184 33 (27) 305 318 91 248
Plastics & Chemicals 136 123 40 10 237 260 89 191
Others 3 17 1 (81) 278 20 4 364
Comparable EBITDA2 225 203 149 11 51 429 296 45
Polyester 102 89 102 14 - 192 196 (2)
Plastics & Chemicals 120 97 46 23 158 217 96 126
Others 3 17 1 (81) 278 20 4 364
Net Income (Controlling Interest) 124 121 6 2 2,002 245 (14) 1,907
CAPEX 132 30 27 333 390 162 42 290
Net Debt 1,247 1,219 1,428 2 (13)
Net Debt / EBITDA3 1.3 1.6 1.9
(1) Times: Last 12 months 60
(1) Excludes
Source: Alpek intracompany sales (2) Excludes inventories, carry-forward effects, and non-operating, one-time (gains) losses (3) Times: last 12 monthsLatest Quarter Results
Cash Flow
QoQ YoY Ch.
2Q21 1Q21 2Q20 YTD21 YTD20
(%) (%) (%)
EBITDA 273 324 74 (16) 268 597 185 223
Net Working Capital & Others 6 (192) 27 103 (79) (187) 127 (247)
CAPEX (132) (30) (27) (333) (390) (162) (42) (290)
Financial Expenses (25) (67) (25) 63 1 (91) (51) (78)
Income Tax (32) (44) (37) 26 13 (76) (101) 25
Dividends (128) (23) - (465) (100) (151) (163) 7
Other Sources / Uses 11 (2) (4) 635 383 9 (53) 117
Decrease (Increase) in Net Debt 28 (34) 8 17 (446) (62) (98) 37
Net Income
TABLE 7 | NET INCOME QoQ YoY Ch.
2Q21 1Q21 2Q20 YTD21 YTD20
(in U.S.$ million, except as noted) (%) (%) (%)
Consolidated Net Income 159 152 15 4 987 311 (2) 18,294
Non-Controlling Interest 35 31 9 12 303 67 12 463
Controlling Interest 124 121 6 2 2,002 245 (14) 1,907
Earnings per Share (U.S. $) 0.06 0.06 0.00 2 2,002 0.12 (0.01) 1,911
Avg. Outstanding Shares (million)* 2,112 2,112 2,112 2,112 2,113
61
* Source:
The same number of equivalent shares are considered in the periods presented
AlpekRelevant References: Crude Oil
Price continues to increase in line with demand for refined products
Brent Crude Oil Price
US$/Bbl
120
99
100
80
71
64 65
60 52 54
44 42
40
20
0
2014 2015 2016 2017 2018 2019 2020 2021
62Relevant References: Paraxylene
Px prices increased by 12% largely in line with Crude Oil price (+13%)
US$/Ton NA Px Contract Price
2,000
1,708
1,635 1,641
1,500 1,382
+12%
1,174 1,165
1,077
992 954 955 996
1,000 937 891
876 876
658 685
590
500
0
2011 2012 2013 2014 2015 2016 2017 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2019 2020 2021
63Relevant References: Integrated PET Margins
Margins increased by 8% QoQ due to continued demand strength
US$/Ton Asian Margins (Px / MEG to PET)
600
China
500
+8%
400 382
370
356
324 330
304 310
300 277 275
266
214 250 242
227 223 260 227
214 164 262 PET
200 227 249
208 192 196
145 172 175
165 159
100
155 140
122 110 94 PTA
69 62 64 73 82 78 83 78 68 81
0
2014 2015 2016 2017 2018 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2019 2020 2021
64Relevant References: Polypropylene Margins
PP margins remain high as effect from polar vortex persists
NA Polypropylene Margin (PP to PGP)
cpp +46%
50
47
45
40
35
32
30
27
25 24
22 21 22
20 19
16 17
15 15
15 13
12 12
10
5
0
11 12 13 14 15 16 17 18 19 1Q 2Q 3Q 4Q 1Q 2Q
2020 2021
65Relevant References: Propylene
PGP contract prices have remained high as demand strength has continued
NA Propylene Contract Price (PGP)
cpp
-8%
80 76
73
71
70 69 67
60
60
54
50
45
41
39 37
40
34 35
31
30 26
20
10
0
11 12 13 14 15 16 17 18 19 1Q 2Q 3Q 4Q 1Q 2Q
2020 2021
66Relevant References: Caprolactam
US$/Ton Asian Caprolactam to NA Benzene Spread (Contract)
2,400
2,100
2,100
1,800
1,500
1,281
1,240 1,231 1,272
1,200 1,137
1,069 1,075
976 943
900 840 862 854
727 692 739
644 669
606
600 549
300
0
2011 2012 2013 2014 2015 2016 2017 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
2018 2019 2020 2021
67
Source: IHS MarkitStock Highlights (BMV: ALPEK)
Daily Stock Price (MXN)
30
25 Valuation 2018 2019 2020 2Q21
20
15
10 Market Cap. (US$B) 3,040 2,571 1,543 2,355
5
Jan May Sep Jan May Sep Jan May Net Debt (US$M) 1,832 1,330 1,185 1,247
2019 2020 2021 EBITDA LTM (US$M) 1,063 850 565 977
Enterprise Value /
4.8 4.9 5.3 4.0
Daily Average Traded Shares & Value (M Shares) EBITDA
(M Shares) (US$M) Price / Earnings 4.0 6.6 7.9 4.6
5 4
4 Price per Share (MXN) 27.61 23.40 15.70 22.36
3
3
2 Exchange Rate
2 19.24 19.26 21.49 20.05
(MXN/USD)
1 1
0 0
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J
2019 2020 2021
68Alpek’s Investor Relations Team
Email: IR@alpek.com / Phone: +52 (818) 748-1146
Alejandro
• 10 Years at Alfa/Alpek
Elizondo • Previously held roles as Director of Logistics & Procurement at Indelpro, Director of Energy Markets at
IRO Alfa, and Project Leader at The Boston Consulting Group
• BS in Industrial Engineering from Cornell University and MBA from Stanford Graduate School of Business
aelizondo@alpek.com
Alejandra
Bustamante • 9 Years at Alfa/Alpek
IR Manager • Previously held roles in Human Capital, Talent & Culture at Alfa and Axtel
• BA in International Relations from ITESM
abustamante@alpek.com
69Disclaimer
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.
70SECOND QUARTER 2021 CORPORATE PRESENTATION
You can also read
