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Transcription:

Corporate Presentation 3Q17

This presentation contains, or may be deemed to contain, forwardlooking 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. 19.8

Index Business Overview Consolidated Financials Appendix

Index Business Overview Consolidated Financials Appendix

Investment Highlights 1 Market-leading position in the Americas 2 Attractive consumer-oriented product portfolio 3 High-return integration and cost-saving projects 4 Low cost producer with leading technology 5 Experienced management team 6 Strong free cash flow and financial performance 5

Alpek is a leading petrochemical company focused on Polyester chain products, mainly PTA and PET Polyester (72% of sales) Plastics & Chemicals (28% of Sales) PTA / PET Polyester Fibers Polypropylene Expandable Polystyrene Caprolactam & Fertilizers Others Alpek Polyester 2 Indelpro 3 Styropek Unimor Polioles 4 Revenues 1 : US$ 5.1 Billion EBITDA 1 : US$ 376 Million (US$ 489 Million ex-a/r impairment) Source: Alpek estimates (1) September 2017 LTM (2) 6.65% of the subsidiaries Akra Polyester, S.A. de C.V. and 8.55% Tereftalatos Mexicanos, S.A. de C.V., are owned by BP Amoco Chemical Co. (3) 49% is owned by Lyondell Basell Industries Holdings B.V. (4) 50% minus one share is owned by BASF de Mexico S.A. de C.V. 6

Polyester Chain Polyester Crude Oil Gasoline PET Reformer Paraxylene PTA Fibers Naphtha Ethane Cracker Ethylene Ethylene Oxide MEG Source: Alpek 7

Alpek s products are widely used for food packaging and consumer end-markets Consumer Goods 32% Volume by Industry 2016 (3,938 Kta) Textiles 7% Construction 3% Food and Beverages 58% Sales Geography 2016 (4,838 Kta) Canada 1% Europe 3% LatAm 14% Asia and Others 1% USA 44% Mexico 37% Sample End Users by Industry Beverage Food Personal care Textiles Source: Alpek estimates Kta: Thousand tons per year 8

Alpek is the largest integrated polyester producer in North America (PTA-PET) North America 2016 Installed Capacity PTA (5,550 kta) 5% Eastman 10% NanYa PET (4,391 kta) BP 25% 41% M&G 19% 42% Indorama 30% Indorama 29% Source: PCI adjusted with Alpek s official capacities 2016 Capacities, 2016 M&As 9

Alpek s installed capacity amounts to 5.8 M tons; 23 production facilities and ~5,200 employees Location of Production Sites Installed Capacity Breakdown (Kta) Site PTA PET rpet Fibers PP EPS CPL Other A Monterrey 160 A B DC FE J I G H K R P Q N L M O Mexico (2,950 Kta) USA (2,343 Kta) B Altamira 1,000 640 165 C Salamanca 85 D Ocotlán 10 E Cosoleacaque 610 185 F Lerma 100 G Cedar Creek 170 73 H Cooper River 170 150 I Columbia 640 725 J Pearl River 430 Canada K Selenis 144 Argentina (225 kta) L Zárate 190 M Pacheco 16 N General Lagos 19 Brazil O Guaratingueta 46 Chile (27 Kta) P Santiago 5 Q Puerto Montt 2 R Concon 20 Total Capacity 1 : 5,755 Kta 2,250 2,014 89 310 640 250 85 117 Source: Alpek estimates Kta: Thousand tons per year (1) Includes industrial and specialty chemicals and recycled PET capacities 10

Alpek has developed a leading position in every product of its portfolio Alpek: Industry Position Industry Position Comments PTA #1 in North America Attractive industry structure 41% est. installed capacity share 1 Polyester PET Fibers #1 in North America #2 Worldwide #2 in North America 42% est. installed capacity share 1 Leading supplier of filament for car seatbelts 26% est. installed capacity share 1 PP Only producer in Mexico Attractive growth potential Plastics & Chemicals EPS #1 in the Americas Largest plant in the Americas 40% est. installed capacity share 2 CPL Only producer in Mexico Among top 5 lowest cost producers worldwide Source: PCI and Alpek estimates (1) In North America (2) In the Americas, including recent EPS acquisition 11

Alpek is investing in attractive organic projects to boost profitability Strategic Guidelines Project Overview Estimated figures and dates Project Capex (US$M) EBITDA (US$M) Start-up Capture natural gas, ethane and propane advantage in North America Maximize operating efficiency Selective capacity expansion Lever IntegRex technology 1. Cosoleacaque Cogeneration 140 30 4Q14 2. MEG Tolling Agreement 65 20 2Q16 3. Propylene Spheres (2) 23 10 2Q17 4. EPS Expansion Altamira 30 10 3Q17 5. Altamira Cogeneration 350 90 2018 6. PTA/PET Site (Corpus Christi) 435 100 TBD Total ~ $1 B ~$260 US $965 M invested up to Sep-17 Source: Alpek estimates 12

Alpek also holds a successful M&A track record and is constantly evaluating potential targets M&A Guidelines M&A Deals (2011-2016) Product Capacity Year Country Investment Attractive Market Potential 1. Eastman PTA / PET 1.3 Mtons 2011 USA US $622 M 2. Wellman PET 430 ktons 2011 USA US $123 M 3. Cabelma rpet 16 ktons 2014 Argentina Undisclosed Cost Competitiveness Alpek M&A Existing/Related Business 4. BASF EPS EPS 230 ktons 2015 The Americas Undisclosed 5. BASF (Concon) EPS 20 Ktons 2016 Chile Undisclosed 6. Selenis PET 144 ktons 2016 Canada Undisclosed PTA 640 ktons 7. Petroquimica Suape (1) PET 450 Ktons 2018 est. Brazil US $385 M Fibers 90 ktons (1) Subject to corporate and governmental approvals after suspension imposed on the assets sale is resolved by Petrobras 13

YTD Volume, Revenues and Capex in line with guidance; EBITDA affected by M&G provision Sales Volume Revenues (Ktons) 3,931 3,937 3,938 4,106 3,036-1% 3,079 (US$ Million) 6,471 5,284 4,838 5,069 3,910 +1% 3,855 2014 2015 2016 2017G YTD17 YTD17G 2014 2015 2016 2017G YTD17 YTD17G EBITDA CAPEX (US$ Million) 434 630 669 502 243-35% 373 (US$ Million) 320 317 345 238 206 +3% 200 % Sales 6.7% 11.9% 13.8% 9.9% 6.2% 9.7% 2014 2015 2016 2017G YTD17 YTD17G 2014 2015 2016 2017G YTD17 YTD17G Source: Alpek estimates 14

Lower 2017 EBITDA guidance mainly due to normalization of PP margins after 1Q16 peak Alpek: EBITDA (M dls) Average Margin: Polypropylene to Propylene (PGP) (c/lb) 26 669 24 8 637 89 18 17 23 27 502 11 11 11 4 2012 2013 2014 2015 2016 2017 15 20 26 30 28 23 18 18 18 11 EBITDA 2016 Inventory gain Non Comparable operating items EBITDA 2016 PP Margin EPS Margin Polyester Others EBITDA 2017G 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 15

EBITDA vs. Guidance (YTD17) Alpek EBITDA vs Guidance US$M YTD17 YTD17G 373 Polyester Comp. 168 217 Plas. & Chem. Comp. 170 149 113 260 12 US -$17 M 12 2 6 243 PPA Selenis 12 8 Guidance EBITDA 351 373 Val. Inv. 6 - M&G A/R Provision (113) - Reported EBITDA 243 373 YTD 17G M&G A/R Provision YTD17 Ex-M&G Polyester Outages 2Q17 Secondary feedstocks (IPA) Other Inventory gain YTD17 16

Relevant events forward looking M&G s financial distress Support M&G Altamira PET plant restart Formal restructuring plan to be presented by M&G (PET operations + Corpus Christi) Sale of Cosoleacaque and Altamira power cogeneration plants PET antidumping cases in U.S.A. and Canada CADE evaluation of potential acquisition in Brazil 17

Index Business Overview Consolidated Financials Appendix

Sales Volume and Revenues Sales Volume Revenues +2% 3,931 3,937 3,938 4,006 6,471 (Kta) 22% 78% 23% 77% 24% 76% 23% 77% (US$ Million) 27% 73% 5,284 27% 73% 4,838 29% 71% +4% 5,036 28% 71% 2014 2015 2016 LTM 17 2014 2015 2016 LTM 17 Polyester Plastics & Chemicals Source: Alpek estimates 19

Income Statement Accounts Operating Income EBITDA 481 532 630 669 (US$ Million) 286 347 ex-m&g (US$ Million) 434 489 376 ex-m&g % Sales 4.4% 9.1% 11.0% -3.9% 2014 2015 2016 201 LTM 17 % Sales 6.7% 11.9% 13.8% 7.4% 2014 2015 2016 LTM 17 Financial Cost, Net (1) Majority Net Income (US$ Million) 111 116 133 155 95 (US$ Million) 65 175 198 155 ex-m&g 60 ex-m&g 261 2014 2015 2016 LTM 17 % Sales 1.0% 2014 2015 3.3% 4.1% -5.1% 2016 LTM 17 Source: Alpek estimates (1) Financial Cost, Net = Net Financial Expenses + Fx Gains (Losses) + Interest Rate Swaps + Gas & Comm. Derivatives 20

Balance Sheet Accounts Net Working Capital (1) Property, Plant and Equipment 685 632 694 1,861 1,820 1,955 2,117 (US$ Million) 488 (US$ Million) NWC Days 47 45 53 50 2014 2015 2016 Sep 17 Net Debt (2) 2014 2015 2016 Sep 17 Stockholders Equity (US$ Million) 715 722 1,042 1,192 (US$ Million) 2,028 2,005 2,019 1,628 2014 2015 2016 Sep 17 2014 2015 2016 Sep 17 Source: Alpek estimates (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 21

Financial Ratios and Other Indicators Net Debt / EBITDA Interest Coverage (1) 3.2 10.7 (Times) 1.6 1.1 1.6 2.4 ex-m&g (Times) 6.5 7.0 7.0 ex-m&g 5.4 2014 2015 2016 LTM 17 2014 2015 2016 LTM 17 EBITDA / Ton CAPEX (US$ / Ton) 110 160 170 122 94 ex-m&g (US$ Million) 320 317 345 280 2014 2015 2016 LTM 17 2014 2015 2016 LTM 17 Source: Alpek estimates (1) Interest coverage= EBITDA / Net financial expenses 22

Alpek Consolidated Debt Profile September 2017 Gross Debt: U.S. $1,639 million Net Debt: U.S. $1,192 million Available Committed Credit Lines: U.S. $171 million (Total: U.S. $430 million) 99% of our debt is denominated in US dollars (1) 650 447 300 224 154 221 27 50 Cash 2017 2018 2019 2020 2021 2022 2023 (1) A small portion of debt is denominated in ARS 23

Dividends paid to shareholders 143 129 100 114 95 111 (US$ Million) 2012 2013 2014 (1) 2015 2016 2017 (1) Paid in December2013 24

Index Business Overview Consolidated Financials Appendix

Operating & Financial Highlights (3Q17) Alpek One-time charges associated to Mossi & Ghisolfi (M&G): U.S. -$113 million A/R provision (EBITDA), U.S. -$435 million intangible asset impairment (Oper. Income), U.S. -$95 million financial asset impairment (Financial Cost, Net) and U.S. +$223 million deferred tax 3.2 times Net Debt/LTM EBITDA; 2.4 times excluding M&G A/R provision (U.S. -$113 million) Offers for power cogeneration assets in final selection stage Polyester 3Q17 Polyester EBITDA of U.S.$ -51 million, including the U.S. -$113 million M&G A/R provision and a U.S. $9 million non-cash inventory gain PTA supply to M&G was suspended in Mexico (Sep) and Brazil (Aug) due to missed payments Alpek engaging M&G and its key creditors to resume PTA supply Plastics & Chemicals (P&C) 3Q17 P&C EBITDA of U.S. $54 million; null inventory loss/gain Volume impacted by temporary feedstock supply disruptions, mainly due to Hurricane Harvey Resilient margins in polypropylene (PP), expandable polystyrene (EPS) and caprolactam (CPL) 26

Latest Quarter Results Alpek: Selected Financial Information (%) 3Q17 vs. 3Q17 2Q17 3Q16 2Q17 3Q16 YTD17 YTD16 Ch.% Total Volume (ktons) 1,012 1,038 998 (2) 1 3,036 2,967 2 Polyester 788 807 757 (2) 4 2,353 2,254 4 Plastics & Chemicals 225 231 241 (3) (7) 683 713 (4) Consolidated Revenues 1,312 1,306 1,236-6 3,910 3,655 7 Polyester 945 930 885 2 7 2,791 2,593 8 Plastics & Chemicals 367 375 351 (2) 4 1,119 1,062 5 Consolidated EBITDA 3 82 157 (96) (98) 243 536 (55) Polyester (51) 33 83 (254) (161) 70 267 (74) Plastics & Chemicals 54 49 73 10 (26) 173 270 (36) Profit Attributable to Controlling Interest (400) 25 50 (1,719 ) (903) (289) 170 (270) CAPEX and Acquisitions 64 65 128 (2) (50) 206 270 (24) Net Debt 1,192 1,058 915 13 30 Net Debt/LTM EBITDA (1) 3.2 2.0 1.3 Interest Coverage (1) 5.4 8.0 10.8 Source: Alpek (1) Times: Last 12 months. 27

Latest Quarter Results Sales Volume Revenues (Ktons) 1,012 988 986 1,038 981 998 967 970 (US$ Million) 1,293 1,306 1,312 1,182 1,237 1,236 1,219 1,183 Ch.% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -0.2% 5.8% 1.4% 0.3% Ch.% 9.4% 5.5% 6.1% -2.9% (US$ Million) 171 158 EBITDA 208 82 157 143 133 (US$ Million) 72 Majority Net Income 87 48 50 25 29 28 Ch.% 3-400 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q -7.9% -60.5% -97.9% -6.8% Ch.% 20.4% -48.5% -902.8% -4.2% Source: Alpek 2015 2016 2017 ex-m&g 28

Latest Quarter Results Alpek: Cash Flow (%) 3Q17 vs. 3Q17 2Q17 3Q16 2Q17 3Q16 YTD17 YTD16 Ch.% EBITDA 3 82 157 (96) (98) 243 536 (55) Net Working Capital & Others 29 156 37 (81) (21) 121 (100) 221 Capital Expenditures & Acq. (64) (65) (128) 2 50 (206) (270) 24 Financial Expenses (17) (17) (18) (5) 5 (50) (41) (21) Income tax (19) (33) (23) 43 18 (78) (142) 45 Dividends (71) (9) - (712) (100) (168) (205) 18 Payment affiliated companies - 1 (4) (100) 100 1 60 (99) Other Sources / Uses 5 3 (25) 76 119 (13) (32) 60 Decrease (Increase) in Net Debt (135) 118 (4) (214) (2,947) (151) (193) 22 Alpek: Net Income (%)3Q17 vs. 3Q17 2Q17 3Q16 2Q17 3Q16 YTD17 YTD16 Ch.% Consolidated Net Income (394) 38 65 (1,140) (709) (251) 240 (205) Non-Controlling Interest 6 13 15 (53) (58) 38 70 (45) Controlling Interest (400) 25 50 (1,719) (903) (289) 170 (270) Earnings per Share (U.S. Dollars) (0.19) 0.01 0.02 (1,719) (903) (0.14) 0.08 (270) Avg. Outstanding Shares (Millions)* 2,117 2,117 2,118 2,117 2,118 Source: Alpek 29

Comparable EBITDA and 2017 Guidance (ex-m&g) Reported EBITDA 2014 2015 2016 2017G 3Q16 3Q17 2016 2017 Polyester 270 344 349 304 157 (51) 267 70 Plastics & Chemicals 159 284 322 198 83 54 270 173 TOTAL 434 630 669 502 73 3 536 243 Adjustments* 2014 2015 2016 2017G 3Q16 3Q17 2016 2017 Polyester 71 35 (18) - 2 105 (2) 98 Plastics & Chemicals - (11) (14) - (6) - (14) (3) TOTAL 71 24 (32) - (4) 105 (16) 95 *Adjustments: Inventory and non-operating, one-time (gains) losses Comparable EBITDA 2014 2015 2016 2017G 3Q16 3Q17 2016 2017 Polyester 341 378 331 304 85 54 265 168 Plastics & Chemicals 159 273 308 198 67 54 356 170 TOTAL 505 654 637 502 152 108 520 338 30

Polyester Chain PTA, PET, and Polyester Fibers Revenues LTM 17 US$ 3,103 Million EBITDA LTM 17 US$ 152 Million Selenis, Quebec. PET General Information Employees: 3,629 Products (Capacity): PTA (2,250 Kta) PET (2,014 Kta) rpet (89 Kta) PSF (150 Kta) Filament and polymer (160 Kta) Monterrey, N.L. Headquarters Polyester Filament Cosoleacaque, Ver. PTA & PET Cedar Creek, NC PET, R-PET Cooper River, SC PET & PSF Columbia, SC PTA & PET Pearl River, MI PET Altamira, Tamps. PTA ARG Zárate, Arg. PET Raw Materials: Paraxylene (Px) Monoethyleneglycol (MEG) Acetic Acid Pacheco, Arg. PET End Markets: Food and beverage Textile Consumer Goods Source: Alpek 31

Plastics & Chemicals PP, EPS, CPL and Others Revenues LTM 17 US$ 1,425 Million EBITDA LTM 17 US$ 226 Million Altamira, Tamps. PP, EPS Employees: 1,527 General Information Products (Capacity): Polypropylene - PP (640 Kta) Expandable Polystyrene - EPS (250 Kta) Caprolactam - CPL (85 Kta) Other (117 Kta) Raw Materials: Propylene, Styrene, Cyclohexane, Ammonia, Sulfur, Pentane, Ethylene Oxide, Propylene Oxide and Others End Markets: Consumer Goods Food and Beverage Construction Monterrey, N.L. Headquarters, Ocotlán, Jal. Nylon 6 Salamanca, Gto. CPL and Fertilizers Lerma, Edo. De Mex. Specialty Chemicals Concon, Chile EPS Santiago, Chile Other Puerto Montt, Chile Other General Lagos, Argentina EPS Guaratingueta, Brazil EPS Source: Alpek 32

Alpek is managed by an experienced team focused on delivering value to shareholders Name Position Years with Alpek / Alfa José de Jesús Valdez Simancas CEO 40 Eduardo Escalante Castillo CFO 29 Polyester Polyester Plastics Plastics & Chemicals Chemicals Felipe Garza Medina Co-President, Alpek Polyester 39 Jorge Young Cerecedo Co-President, Alpek Polyester 26 Jorge González Escobedo President, Polyester Filaments 42 Alejandro Llovera Zambrano President, Polypropylene 31 José Luis Zepeda Peña President, EPS and Chemicals 30 Gustavo Talancón Gómez President, CPL and Ammonium Sulfate 27 Source: Alpek 33

Organization Chart José de Jesús Valdez CEO Eduardo Escalante CFO Polyester Chain Plastics & Chemicals Felipe Garza Co-President Alpek Polyester Jorge Young Co-President Alpek Polyester Jorge González President, Polyester Filaments Alejandro Llovera President, Polypropylene José Luis Zepeda President, EPS and Chemicals Gustavo Talancón President, CPL and Ammonium Sulfate Source: Alpek 34

Polypropylene Chain Refinery Propylene Polypropylene Cracker Source: Alpek 35

EPS & CPL Chain Refinery Ammonia Gasoline Crude Oil Cyclohexane Caprolactam (CPL) Reformer Benzene Styrene EPS Cracker Ethylene Source: Alpek 36

Alpek has been a reliable partner to other global industry leaders through successful joint ventures Alpek: Sample Joint Ventures 51.0% 50.0% + 1 Share + + World leader in PP production with sales in more than 100 countries Largest petrochemical company in the world with more than 370 sites Source: Alpek 37

Alpek has grown at a 8% annualized rate since 1986 through M&A, JVs and organic projects Sales Volume 1986-2016 (Index: 1986=100) Selenis/ Concon Acquisition PTA/PET acquisitions (USA) EPS acquisition Acquisition of polyester business (USA) EPS expansion in Altamira Polypropylene expansion Clear Path Recycling IPO (BMV) CabelmaPET Coso Cogen Acquisition of Univex (Caprolactam) DMT Expansion Acquisition of PTA plant Polypropylene plant start-up Cogeneration project EPS Expansion Propylene splitter installation Acquisition of Argentina and Mexico PET plants 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 Source: Alpek 38

Organic growth and acquisitions position Alpek as a leading PTA and PET producer in North America 2004 (5,500 Kta) PTA Installed Capacity (1) 2016 (5,550 Kta) Interquisa Invista Eastman Eastman BP BP 41% 29% Indorama 2004 (3,800 Kta) PET Installed Capacity (1) 2016 (4,931 Kta) 8% Indorama Others Eastman NanYa NanYa M&G Wellman 42% Invista Source: PCI (1) In North America M&G Indorama 39

Alpek operates a state-of-the-art portfolio of proprietary and third-party technologies Alpek: Proprietary and Third-Party Technologies PTA PET Oilfield Chemicals Proprietary Technologies (I&D, acquisitions) Integrex PTA Integrex PET In-house technology Melt Tek TM Polypropylene EPS Caprolactam Third-Party Technologies Spheripol (LB) Spherizone (LB) Single Step (BASF) HSO Source: Alpek 40

Alpek s IntegRex technology simplifies both PTA and PET production processes PTA / PET: Process Diagram Oxidation Feed prep Esterification Precursor Preheating Post-Oxidation Hydrogenation Pre-Poly Crystallization Crystallization Crystallization Polymerization Annealing Filtration and Drying CTA Storage Filtration and Drying PTA Storage Pelletization Precursor Storage Solid State Polymerization PET Resin Steps eliminated with IntegRex TM technology Source: Alpek Benefits from IntegRex TM technology: ~20% reduction in conversion cost ~US$15 less per ton in capital cost 11 less steps for the production of PTA and PET Lower wastewater by-product and greenhouse gas emissions 41

Power cogeneration overview Natural Gas 1 Gas turbine Cogeneration plant Hot gases 2 Heat Recovery Steam 3 Steam turbine Electricity Steam Contract-based power customers 1. Gas turbine generates electricity 2. Combustion gases produce steam 3. Steam is used to generate additional electricity and for Alpek s chemical reactions 42

M&G s Corpus Christi site capacity breakdown Corpus Christi Site (CC) PTA 1.3 M tons PET 1.1 M tons Raw materials (e.g. Px, MEG, etc.) 420 Ktons 500 Ktons Raw materials (e.g. Px, MEG, etc.) M&G 850 Ktons M&G 600 Ktons 350 Ktons PTA Pearl River 43

Alpek has effectively transformed its EPS business Alpek: EPS capacity Expandable Polystyrene (EPS) The Americas installed EPS capacity 2017E Total: 600 ktons Kta 75 325 Others 65 230 20 Nexkemia 8% 17% 42% Alpek (Styropek) 165 Nova 18% 15% Flint Hills 2014 Acquisition 2015 Concon Altamira Plant Expansion 2018 44

Alpek acquired a controlling interest in Selenis Canada Inc. Alpek: Polyester production facilities Monterrey. México Cosoleacaque. México Columbia. USA Bay St. Louis. USA Altamira. México Fayetteville. USA Charleston. USA Montreal. Canada Selenis Plant Capacity: 144 Ktons (PET) Location: Montreal, Canada Rationale: Only PET plant in Canada Alpek to capture PTA integration synergies Complement product portfolio with differentiated PET products Polyester Plants (4,519 Kta) Selenis Plant (144 Kta) Zárate. Argentina Pacheco. Argentina 45

U.S.A. PET antidumping case (2016) Case Calendar Final Rates March 15: Department of Commerce (DOC) and International Trade Commission (ITC) filing March 16: DOC issued affirmative FINAL Antidumping Duty and Countervailing Duty determinations April 16: ITC issued affirmative FINAL determinations Countervailing Antidumping Canada N/A 14 % China 7 126 % 105 126 % India 0 154 1 % 8 19 % Oman 1 % 8 % Rates applicable for a minimum period of five years. Trade orders could be renewed in five-year increments (1) 154% only for JBF Industries Limited 46

U.S.A. and Canada PET antidumping case (2017) U.S. A. Petitions filed in September Department of Commerce ( DOC ) initiated investigation (4Q 18) International Trade Commission ( ITC ) pending determination of existence of material injury (2Q 18) Canada Canada Border Services Agency ( CBSA) initiated investigation in August Preliminary resolution expected in 4Q 17 Countries under investigation U.S.A. Brazil Indonesia South Korea Pakistan Taiwan Canada China India Oman Pakistan 47

2017 average Brent price estimated at $55/bbl Brent Crude Oil Dls/Bbl 120 100 99 $/bbl 80 60 40 53 $/bbl 44 $/bbl Guidance 2017 ($55/bbl) 20 2014 2015 2016 2017 Δ 1 US$ dollar / Bbl = ~ Δ 3 US$ Million EBITDA 48

Paraxylene (Px) Price Px USA Contract Price 1,708 1,635 1,543 1,168 (US$ / Ton) 1,014 970 948 882 838 920 871 926 995 898 981 2011 2012 2013 2014 1Q 15 2Q 15 3Q 15 4Q 15 1Q 16 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 3Q 17 49

Propylene and Styrene Prices North America Propylene Contract Price North America Styrene Spot Price 73 70 71 70 75 71 71 74 (c / lb) 50 42 33 31 31 33 38 36 42 48 52 46 39 39 39 40 47 (c / lb) 59 59 59 48 49 44 46 44 42 39 63 60 55 50 48 50 46 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q E F M A M J J A S 1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q E F M A M J J A S 2014 2015 2016 2017 2014 2015 2016 2017 50

PET Margin (Asia) Margin: Asia PET to Px/MEG 394 (US$ / Ton) 250 258 270 230 210 260 212 210 200 240 214 276 222 263 237 China PET 201 74 71 69 63 59 71 64 63 60 72 80 PTA 11 12 13 14 15 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2016 2017 51

Caprolactam Margin (US) Margin: CPL Spot to Contract Benzene 2,108 (US$ / Ton) 1,181 1,013 797 986 985 704 641 584 647 637 781 1,192 819 933 2011 2012 2013 2014 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2015 2016 2017 52

Alpek stock highlights (BMV: ALPEK) Daily Stock Price Daily Average Traded Shares & Value (Pesos) 40 35 30 25 (M Shares) (U.S. $ M) 6 6 5 Shares Value ($) 5 4 3 4 3 2 2 20 1 1 15 Jul Sep Nov Jan Mar May Jul Ago Sep 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Abr May Jun Jul Ago Sep 0 2016 2017 2016 2017 Performance ALPEK IPC DJI September 2017-3.6% -1.7% 2.1% YTD (Sep-17) -23.1% 10.3% 13.4% LTM (Sep-17) -42.1% 6.6% 22.4% Valuation 4Q14 4Q15 4Q16 3Q17 3Q17 Proforma Market Cap. (U.S.$ B) 2,475 3,113 2,193 2,228 2,228 Net Debt (U.S.$ M) 715 722 1,042 1,192 1,192 EBITDA LTM (U.S.$ M) 434 630 669 376 489 Enterprise Value / EBITDA 8.0 6.5 5.2 9.7 7.5 Price / Earnings 23.8 13.3 8.0 N/A 11.0 Price per Share (MXN) 17.78 25.98 21.10 20.00 20.00 Exchange Rate (MXN/USD) 15.21 17.67 20.35 19.00 19.00 53

M&G Chemicals Overview About M&G Plant locations Founded 1953 in Toronta, Italy Private company; no public debt or equity 20-yr comercial relationship w/alpek (11% of Alpek sales) Corpus Christi 1 Apple Grove Altamira Installed Capacity PTA PET Apple Grove (USA) 270 Altamira (Mexico) 560 Suape (Brazil) 550 Corpus Christi 1 (USA) 864 600 Suape 1) Under construction; net of Alpek s capacity reservation Source: PCI 54

Alpek s exposure to M&G US$M Guarantee Capacity Reservation Corpus Christi 435 Corpus Christi assets (2 nd lien) Accounts Receivable 113 Unsecured M&G Mexico Loan (Acquired) 100 M&G Mexico PET plant in Altamira (1 st lien) $90 M Loan 90 Corporate guarantees 55

Non-recurring charges associated to M&G Income Statement Balance Sheet US$M YTD17 (ex-m&g) M&G Charge YTD17 US$M Sep-17 (ex-m&g) M&G Charge Sep-17 Operating Income 250 (548) (298) Intangible asset impairment (435) A/R Provision (113) EBITDA 356 (113) 243 A/R Provision (113) Financial cost, net (26) (95) (121) Taxes (55) 223 168 Net income (loss) 169 (420) (251) Profit (loss)attributable to controlling interest 127 (416) (289) Net Debt 1,192 1,192 Net Debt / EBITDA 2.4 3.2 Assets 5,044 (481) 4,563 Trade accounts receivable 620 (113) 507 Intangible Assets Cap Res 571 (360) 211 Other Assets Cap Res 76 (75) 1 Other Assets Loan 102 (95) 7 Other Assets Deferred tax 20 162 182 Other Assets 3,655-3,655 Liabilities 2,996 (61) 2,935 Other Liabilities Deferred tax 373 (61) 312 Other Liabilities 2,622-2,622 Stockholders Equity 2,048 (420) 1,628 Earned surplus 978 (420) 558 Others 1,070-1,070 56

North America PTA / PET capacity breakdown North America 2016 Installed Capacity PTA PET Ktons USA Mexico Canada Total Alpek 640 1,610-2,250 Indorama 1,050-600 1,650 BP 1,400 - - 1,400 Eastman 250 - - 250 Total 3,340 1,610 600 5,550 Ktons USA Mexico Canada Total Alpek 1,495 185 144 1,824 Indorama 812 480-1,292 M&G 270 560-830 Nan Ya 445 - - 445 Total 3,022 1,225 144 4,391 Source: PCI adjusted with Alpek s official capacities 2016 Capacities, 2016 M&As 57