Alpek Polyester (PET). Pearl River, USA. Petrochemicals

Transcription

1 Alpek Polyester (PET). Pearl River, USA Petrochemicals

2 Contents Overview Recent Developments Strategy Outlook

3 Overview Alpek Polyester (PTA, PET). Columbia, USA

4 Alpek at a glance LTM 3Q18 US $6.6 Billion Revenues US $834 Million EBITDA 26 Plants ~5,900 Employees

5 Leading position across product portfolio Sales by product (%) 73% Polyester Polyester (PTA, PET, rpet, Fibers) 73% #1 PTA-PET producer in America 27% Plastics & Chemicals Polypropylene (PP) 12% Expandable Polystyrene (EPS) Caprolactam (CPL) & Fertilizers Specialty & Industrial Chemicals 8% 4% 3% #2 PET producer Worldwide #1 EPS producer in America Only PP and CPL producer in Mexico

6 Focus on consumer end-markets Volume by end-use Others 11% Consumer Goods 22% Food and Beverages 66%

7 Sustainable growth track record Volume Index Polyester acquisition in Brazil U.S. PTA/PET plant acquisitions IPO (BMV) Acquisition of first PTA plant PP plant start-up (JV) CPL plant acquisition First U.S. polyester plant acquisitions EPS capacity expansion (JV) First recycling plant (JV) First power cogeneration plant Thirty-year CAGR: +8%

8 Financial performance EBITDA LTM (US$ Million) Net Leverage (Times) Q17 4Q17 1Q18 2Q18 3Q18 3Q17 4Q17 1Q18 2Q18 3Q18

9 Recent Developments

10 Global margin recovery PTA/PET (Asia, Integrated) Polypropylene (North America) Caprolactam (Asia) +61% +15% +48% Average Average Average (1) Sep 18 YTD Note: Industry figures; source: WoodMackenzie, IHS Markit, ICIS

11 Actively engaged in transformational events PTA & PET Capacity Share in the Americas PTA Alpek 36% Alpek 47% Suape/Citepe acquisition PET Alpek 36% M&G Bankruptcy Alpek 44% Source: WoodMackenzie, Alpek

12 Suape/Citepe acquisition Access to strategic market One of three PET producers in the region Attractive growth potential Competitive asset Only integrated PTA/PET site in the region Enhanced footprint in the Americas Alpek Polyester (PTA, PET, Fibers). Suape/Citepe, Brazil

13 Ongoing turnaround at Suape/Citepe Foto informe 2016 pg 33 Initial achievements Cost reduction Increased production Enhanced profitability Customer relationship Opportunities Cost optimization Plant reliability Energy savings

14 M&G bankruptcy 1 Relevant role in Mexico Restructure First Lien Acquisition DIP Financing Secure PTA supply Maximize debt recovery 2 Corpus Christi Chapter 11 Process Winning Bid 1 in partnership with Indorama & FENC Access to most competitive PTA/PET in the Americas 1) FTC approval process in progress

15 Power cogeneration Power Rate Index (Mexico) 109% Two plants (Mexico) 445 MW Cosoleacaque: 95 MW Altamira: 350 MW J J A S O N D J F M A M J J A S

16 Potential divestment considerations 4Q17 3Q18 Power Rate Mexico ( /kwh) Construction (Altamira) Alpek Leverage (Net debt / EBITDA) 87% 98% 3.3x 1.9x 1) January ) September 2018 Alpek Polyester (Power cogeneration). Altamira, México

17 Strategy Indelpro (PP). Altamira, México

18 Strategic priorities Strengthen Core Business Growth PET Sustainability Alpek Polyester (PET). Columbia, USA

19 Strengthen Core Business Strengthen core business Cambiar foto Ensure profitability throughout margin cycles Cost improvement Enhance position in the Americas Reliability, quality and innovation Secure competitive feedstock/power supply

20 Enhance profitability Strengthen Core Business US PET Conversion Cost (Index 2014: 100) PTA Sales Mix -20% 91% Domestic / Integrated 40% Q18 YTD Proforma

21 Strengthen Core Business Key opportunities Lever Integrex technology Altamira PTA Brazil expansion (PTA and Fibers) Paraxylene / MEG / propylene integration Ammonia & ethylene storage spheres

22 Growth Growth Deliver returns following US $1 Billion investments Suape/Citepe Altamira Cogeneration Corpus Christi PTA/PET Vertical integration Strategic and opportunistic M&A Focus on synergies Explore new geographies Alpek Polyester (PET). Pearl River, USA

23 Growth Disciplined capital allocation >15% IRR (unlevered, dollar-denominated) Foto Maintain healthy capital structure Competitive assets / relevant markets Preference for existing or related businesses Strategic fit

24 Key PET advantages Global Recycling Rate (%) PET Sustainability % recyclable 14 Lower cost and energy consumption vs aluminum and glass Lightweight and resistant PET Other Plastics Source: Ellen MacArthur Foundation ( The New Plastics Economy )

25 Developments PET Sustainability Operating two recycling facilities ( 90 Kta) USA: #1 PET recycler Argentina: only food-grade recycler Expand recycled content offering Customer-oriented initiatives Bio-content Product development (lightweighting)

26 Outlook Indelpro (PP). Altamira, México

27 Build upon robust cash generation Selected cash flow items (US$ Million) Cash CAPEX + Dividends LTM 3Q18

28 Focus Enhance market position Ensure profitability throughout margin cycles Deliver returns on recent investments Pursue profitable growth Maintain disciplined capital allocation

29 Alpek Polyester (PET). Pearl River, USA Petrochemicals