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General
Corporate Presentation4Q18
General
This presentation contains, or may be deemed to contain, “forward-looking statements”. By theirnature, forward looking statements involve risks and uncertainties because they relate to eventsand 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 theforward-looking statements set out herein, possibly to a material degree.
25.8
General
Business Overview
Consolidated Financials
Appendix
Index
3
General
Business Overview
Consolidated Financials
Appendix
Index
4
General
Investment Highlights
5(1) Note
Source:
Market-leading position in the Americas1
High-return organic projects and accretive M&A3
Attractive consumer-oriented product portfolio2
4 Low cost producer with leading technology
5 Experienced management team
6 Strong free cash flow and financial performance
General
About Alpek
6
• US $7.0 B Revenues
• US $1,063 M EBITDA
(US $804 M Comparable EBITDA)
• 26 Plants
• ~7.0 M Tons/Yr Installed Capacity
• ~5,800 Employees
General
Leading petrochemical company
7
• US $6.6 B Revenues
• US $834 M EBITDA
• 26 Plants
• ~5,900 Employees
• #1 PTA-PET producer in America
• #2 PET producer Worldwide
• #1 EPS producer in America
• Only PP and CPL producer in Mx
25%Plastics &
Chemicals
74%Polyester
Polyester
(PTA, PET, rPET, Fibers)74%
Polypropylene (PP)(1) 11%
Expandable
Polystyrene (EPS)8%
Caprolactam (CPL)
& Fertilizers3%
Specialty & Industrial
Chemicals(2) 3%
% Sales by product
(1) 49% is owned by Lyondell Basell Industries Holdings B.V.
(2) 50% minus one share is owned by BASF de Mexico S.A. de C.V.
Market position
General
Polyester Chain
8
Gasoline
Reformer Paraxylene
Crude Oil
Fibers
PET
PTA
MEGEthyleneCrackerEthane
Naphtha Ethylene
Oxide
Polyester
1
1) 0.84 ton Ethylene per ton Ethylene Oxide
2) 0.72 ton Ethylene Oxide per ton MEG
3) 0.66 ton Paraxylene per ton PTA
4) 0.85 ton PTA per ton PET
5) 0.35 ton MEG per ton PET
2
3
4
5
4
General
Consumer end-markets
9
Sales Geography 2018(US$ 6,991 Million )
Sample End Users by Industry
Food Personal care Textiles
USA
45%Canada
3%
LatAm
18%
Europe
3%Asia and Others
1%
Food and
Beverages
67%
Consumer
Goods
22%
Textiles
7%
Construction
4%
Source: Alpek estimates
Kta: Thousand tons per year
Beverage
México
30%
Volume by Industry 2018(4,402 Kta)
General
Integrated polyester producer (PTA-PET)
10
2004 2018
PTA & PET Capacity Share in the Americas
PTA
PET
Alpek
29%
Alpek
47%
Alpek
44%
8%
Source: WoodMackenzie, Alpek
General
Strategic priorities
11(1) Note
Source:
Strengthen
Core Business
Growth
PET
Sustainability
Strengthen
Core
Business
• Ensure profitability throughout industry cycles
• Enhance position in the Americas
• Secure competitive feedstock/power supply
Growth
• Deliver returns on recent investments (U.S. $1 B)
• Vertical integration
• Strategic and opportunistic M&A
PET
Sustainability
• Expand PET recycling capacity
• Enhance recycled content offering
• Support customer initiatives
Strengthen
Core
Business
Growth
PET
Sustainability
General
2018 Results and 2019 Guidance
12
Sales Volume Revenues
EBITDA CAPEX
(Kto
ns)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
3,937 3,938 4,012
4,000 4,038
2015 2016
4,734
2017 2019G2018
4,402
+8%
5,2844,838
5,231
6,497 6,440
20182015 2016 2019G2017
7,2486,991
+4%
630 669
384
220
200
2015 20182016
843
2017
718
2019G
1,063
918
-14%
310
2019G2015 2016 2017 2018
317 345
236
826
-63%
% Sales 11.9% 15.2%13.8% 7.3% 15.2%
Suape/
Citepe &
Corpus
Suape/
Citepe
Suape/
Citepe
Business
CombinationCogen. Sale
General
Rapid recovery post-M&G bankruptcy (3Q17)
13
LTM EBITDA(US$ M)
Net Leverage (Net Debt/EBITDA)(Times)
384 407
564
834
1,063
3Q182Q184Q17 4Q181Q18
3.33.1
2.9
1.91.7
4Q183Q184Q17 1Q18 2Q18
General
EBITDA: 2018 vs 2019G
14
Alpek: EBITDA(US$ M)
US$M 2018 2019G
Polyester 529 523
Plastics & Chemicals 275 191
Comparable 804 7181
Extraordinary items 259 200
Inventory Valuation 41 -
Business Combination 220 -
Cogeneration Sale - 200
Others (2) -
Reported 1,063 918
1,063
918220
39
84 6 5
200
P&Ch2018
Comp.
Inventory
& others2018 Business
Comb.
Polyester Others 2019G2019
Comp.
Cogen.
Sale
804
718
(1) Comparable EBITDA includes profits (US $5 M) from other activities such as natural gas sales
General
Relevant events – Progress and status (4Q18)
15
• U.S. $801M sale of Cosoleacaque and Altamira power cogeneration plants
• Signed agreement with ContourGlobal; closing expected 1H19
• Altamira plant on track to begin commercial operations during 2Q19
• Use of proceeds: i) Projects, ii) Debt reduction, iii) Dividends
• Corpus Christi project acquisition from M&G USA
• Newly formed JV between Alpek / Indorama / FENC completed acquisition on December 28,2018
• Alpek contributed US$266M cash + US$133M non-cash (Total value: US$1.199B)
• Investment and timeline to complete construction TBD
• Petroquímica Suape and Citepe (Suape/Citepe) acquisition in Brazil
• Consolidated in Alpek’s results as of May 1, 2018; US$435M purchase price
• Successful integration and positive EBITDA contribution
• M&G Mexico restructure process
• Normalized M&G Mexico operations (supported by Alpek)
• M&G Mexico presented “solicitud de concurso mercantil” with pre-arranged restructuring plan; subject to court approval
• Recycled PET acquisition closed in Juanuary (Perpetual)
• Installed capacity (rPET): 45 Ktons, 60% increase in Alpek rPET capacity
General
Business Overview
Consolidated Financials
Appendix
Index
16
General
Sales Volume and Revenues
17
Sales Volume Revenues
(Kta
)
(US
$ M
illi
on
)
Polyester Plastics & Chemicals
77%
23%
77%
2015 2016
76%
24% 23%
2017
21%
79%
2018
3,937 3,938 4,012
4,402
+10%
29%27%
5,284
71%73%
2015
29%
71%
2016 2017
25%
74%
2018
4,8385,231
6,991
+34%
Source: Alpek estimates
General
Income Statement Accounts
18
Operating Income (Loss) EBITDA
Financial Cost, Net(1) Majority Net Income (Loss)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
481 532
220
2015 2016 2017 2018
1,086
-3.6%11.0%9.1%% Sales 15.5%
-188
Ex-M&G360
630669
384
843
220
20162015 2017 2018
1,063
497 Ex-M&G
% Sales 7.3%13.8%11.9% 15.2%
116133
93
14195
20162015 2017 2018
188
Ex-M&G
175 198
220
136
2015 20172016 2018
697
162 Ex-M&G
-6.1%4.1% 10.0%3.3%% Sales
-319
Source: Alpek estimates
(1) Financial Cost, Net = Net Financial Expenses + Fx Gains (Losses) + Interest Rate Swaps + Gas & Comm. Derivatives
M&G Recovery
Business
Combination
Business
Combination
Business
Combination
General
Balance Sheet Accounts
19
Net Working Capital(1) Property, Plant and Equipment
Net Debt(2) Stockholders’ Equity
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
632694
497
955
20162015 2017 2018
394445 53NWC Days
1,8201,955
2,105
2,390
201720162015 2018
722
1,042
1,262
1,832
20162015 2017 2018
2,005 2,019
1,604
2,193
2015 2016 2017 2018
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
General
Financial Ratios and Other Indicators
20
Net Debt / EBITDA Interest coverage(1)
EBITDA / Ton CAPEX and Acquisitions
(Tim
es)
(Tim
es)
(US
$ / T
on
)
(US
$ M
illio
n)
1.1
1.6
2.5
1.7
2015 20182016 2017
3.3
2.2
Ex-M&G
10.7
7.0
4.8
7.8
2015 20172016
9.9
2018
6.2 Ex-M&G
160 170
192
2016
242
2015 2017
124
2018
Ex-M&G
317 345
236
125
435
266
2015 20172016 2018
826
Suape/Citepe
Source: Alpek estimates
(1) Interest coverage= EBITDA / Net financial expenses
Ex-Business
Combination
Ex-Business
Combination
Ex-Business
Combination
CC Polymers
General
Alpek Consolidated Debt Profile - December 2018
• Net Debt: U.S. $1,832 million / Gross Debt: U.S. $2,043 million
• Available Committed Credit Lines: U.S. $728 million (Total: U.S. $1.210 billion)
• 99% of our debt is denominated in US dollars1
21
212
502
171
345
715
300
202220212020Cash 2019 2023
(1) A small portion of debt is denominated in ARS
General
Dividends paid to shareholders
22
(US
$ M
illio
n)
100114
95
111
143
143
143
20162013 2014(1) 2015 2017 2018 2019G
286
(1) Paid in December2013
After
Cogeneration
Sale
General
Business Overview
Consolidated Financials
Appendix
Index
23
General
Latest Quarter Results
24
Alpek: Selected Financial Information
Source: Alpek
(1) Times: Last 12 months
(%) 4Q18 vs.
4Q18 3Q18 4Q17 3Q18 4Q17 2018 2017 Ch.%
Total Volume (ktons) 1,061 1,174 975 (10) 9 4,402 4,012 10
Polyester 851 941 752 (10) 13 3,490 3,105 12
Plastics & Chemicals 210 233 224 (10) (6) 912 906 1
Consolidated Revenues 1,758 1,941 1,321 (9) 33 6,991 5,231 34
Polyester 1,295 1,450 933 (11) 39 5,174 3,724 39
Plastics & Chemicals 400 451 388 (11) 3 1,713 1,506 14
Consolidated EBITDA 369 274 141 35 163 1,063 384 177
Polyester 316 198 77 59 308 788 147 435
Plastics & Chemicals 52 76 64 (32) (19) 276 237 16
Profit Attributable to Controlling Interest 393 80 (30) 390 1,399 697 (319) 318CAPEX and Acquisitions 262 37 30 616 777 826 236 250
Net Debt 1,832 1,603 1,262 14 45
Net Debt/LTM EBITDA1 1.7 1.9 3.3
Interest Coverage1 9.9 7.8 4.8
General
Latest Quarter Results
25
Sales Volume Revenues
EBITDA Majority Net Income
(Kto
ns)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
986 1,038 1,012 9751,0161,151 1,174
1,061
1Q 2Q 4Q3Q
16.0%Ch.% 8.8%3.0% 10.9%
1,293 1,306 1,312 1,3211,532
1,7591,941
1,758
1Q 4Q2Q 3Q
48.0%Ch.% 33.1%18.5% 34.8%
8,358.8%Ch.% 162.8%14.5% 191.1% 120.0%Ch.% 1,399.1%-5.4% 473.8%
158
82
3
141
181
239274
369
2Q1Q 3Q 4Q
8725
-400
-30
82142
80
393
4Q1Q 2Q 3Q
2017 2018Source: Alpek
M&G
Business
CombinationBusiness
Combination
M&G Recovery
220 220
136
General
Latest Quarter Results
26
Alpek: Cash Flow
Alpek: Net Income
Source: Alpek
(%) 4Q18 vs.
4Q18 3Q18 4Q17 3Q18 4Q17 2018 2017 Ch.%
EBITDA 369 274 141 35 163 1,063 384 177
Net Working Capital & Others (45) (125) (37) 64 (21) (321) 83 (485)
Capital Expenditures & Acq. (262) (37) (30) (616) (777) (826) (236) (250)
Financial Expenses (28) (30) (22) 6 (27) (107) (72) (48)
Income tax (17) (34) (9) 52 (80) (92) (87) (5)
Dividends (24) - (7) (100) (237) (53) (176) 70
Payment affiliated companies - - - - (207) 10 1 1,280
Other Sources / Uses (221) (14) (105) (1,511) (111) (245) (118) (108)
Decrease (Increase) in Net Debt (228) 34 (70) (776) (226) (569) (221) (158)
(%) 4Q18 vs.
4Q18 3Q18 4Q17 3Q18 4Q17 2018 2017 Ch.%
Consolidated Net Income 402 101 (20) 299 2,107 765 (271) 383
Non-Controlling Interest 10 21 10 (53) (4) 68 49 40
Controlling Interest 393 80 (30) 390 1,399 697 (319) 318
Earnings per Share (U.S. Dollars) 0.19 0.04 (0.01) 390 1,399 0.33 (0.15) 318
Avg. Outstanding Shares (Millions)* 2,118 2,118 2,117 2,118 2,117
General
EBITDA: 2018 vs 2017
27
Alpek: EBITDA(US$ M)
US$M 2017 2018
Polyester 234 529
Plastics & Chemicals 229 275
Comparable 462 804
Extraordinary items (79) 259
Inventory Valuation 22 41
Business Combination - 220
M&G Provision (113) -
Others 12 (2)
Reported 384 1,063
384
462
804
1,063
113
295
46
220
39
Inventory
& others2017 M&G A/R
Provision
P&Ch
35
2017
Comp.
Polyester 2018
Comp.
Business
Comb.
Inventory
& others2018
General
2018 / 2017 Net Income includes extraordinary items
28
US$M2017
Proforma
Extraord.
items
2017
Reported
2018
Proforma
Extraord.
items
2018
Reported
Operating Income 360 (548) (188) 671 415 1,086
Intangible asset impairment (435) 195
A/R Provision (113) -
Business combination - 220
Financial cost, net (93) (95) (188) (141) - (141)
Taxes (52) 158 106 (119) (59) (178)
Net income (loss) 214 (485) (271) 409 356 765
General
Comparable EBITDA and 2019 Guidance
29
Reported EBITDA 2015 2016 2017 2018 2019G
Polyester 344 349 147 788 723
Plastics & Chemicals 284 322 237 276 191
TOTAL 630 669 384 1,063 9181
Comparable EBITDA 2015 2016 2017 2018 2019G
Polyester 378 331 234 529 523
Plastics & Chemicals 273 308 229 275 191
TOTAL 654 637 462 804 7181
Adjustments* 2015 2016 2017 2018 2019G
Polyester (35) 18 (87) 258 200
Plastics & Chemicals 11 14 8 1 -
TOTAL (24) 32 (79) 259 200
*Adjustments: Inventory and non-operating, one-time (gains) losses
(1) EBITDA includes profits (US $5 M) from other activities such as natural gas sales
General
Alpek’s installed capacity amounts to 7.0 M tons; 26 production facilities and ~5,800 employees
30
Location of Production Sites Installed Capacity Breakdonw(Kta)
AB
CD EF
GIHJ
M
NO
P
Q
R
S
L
T
Site PTA PET rPET Fibers PP EPS CPL Other
Mexico
(3,030 Kta)
A Monterrey 160
B Altamira 1,000 640 240
C Salamanca 85
D Ocotlán 10
E Cosoleacaque 610 185
F Lerma 100
USA
(2,358 Kta)
G Cedar Creek 170 55
H Cooper River 170 150
I Columbia 640 725
J Pearl River 430
K Richmond 45
Canada L Selenis 144
Argentina
(225 kta)
M Zárate 190
N Pacheco 15
OGeneral
Lagos19
Brazil
(1,226 kta)
P Guaratingueta 46
Q Ipojuca 640 450 90
Chile
(27 Kta)
R Santiago 5
S Puerto Montt 2
T Concon 20
Total Capacity1: 7,036 Kta 2,890 2,464 115 400 640 325 85 117Source: Alpek estimates
Kta: Thousand tons per year
(1) Includes industrial and specialty chemicals and recycled PET capacities
K
General
Alpek has developed a leading position in every product of its portfolio
31
Alpek: Industry Position
Industry Position Comments
PTA #1 in the Americas • 47% est. installed capacity share in the Americas
PET#1 in the Americas
#2 Worldwide• 44% est. installed capacity share in the Americas
Fibers #2 in the Americas1 • Leading supplier of filament for car seatbelts
• 31% est. installed capacity share (excl. filament)
PP Only producer in Mexico • Attractive growth potential
EPS #1 in the Americas• Largest plant in the Americas
• 42% est. installed capacity share in the Americas
CPL Only producer in Mexico • Among top 3 lowest cost producers worldwide
Po
lye
ste
rP
las
tic
s &
Ch
em
ica
ls
Source: PCI and Alpek estimates
(1)Staple fiber
General
Alpek has invested in attractive organic projects to enhance profitability
32
Strategic Guidelines Project OverviewEstimated figures and dates
• Capture natural gas, ethane and
propane advantage in North America
• Maximize operating efficiency
• Selective capacity expansion
• Lever IntegRex® technology
ProjectCapex (US$M)
EBITDA (US$M)
Start-up
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 2Q19
6. PTA/PET Site (Corpus Christi)1 TBD TBD TBD
Total ~ $580 ~$160
Source: PCI and Alpek estimates
(1) JV among Alpek, Indorama and FENC acquired Corpus Christi project from M&G
General
Alpek also holds a successful M&A track record and is constantly evaluating potential targets
33
M&A Guidelines M&A Deals (2011-2018)
Alpek
M&A
Product Capacity Year Country Investment
1. Eastman PTA / PET1.3
Mtons2011 USA US $622 M
2. Wellman PET 430 ktons 2011 USA US $123 M
3. Cabelma rPET 16 ktons 2014 Argentina Undisclosed
4. BASF EPS EPS 230 ktons 2015The
AmericasUndisclosed
5. BASF
(Concon)EPS 20 Ktons 2016 Chile Undisclosed
6. Selenis PET 144 ktons 2016 Canada Undisclosed
7. Perpetual rPET 45 ktons 2019 USA Undisclosed
Attractive Market Potential
Existing/Related Business
Cost Competitiveness
Alpek
M&A
General
Alpek acquired Petroquímica Suape and Citepe in Brazil
34
Alpek – Polyester plants Petroquímica Suape and Citepe
Montreal. Canada
Charleston. USA
Columbia. USA
Bay St. Louis. USA
Monterrey. México
Fayetteville. USA
Altamira. México
Cosoleacaque. México
Zárate. Argentina
Pacheco. Argentina
Polyester Plants (4,663 Kta)
Petroquímica Suape / Citepe Site
Ipojuca, Brazil
• Capacity (Ktons): 640 PTA, 450 PET, 90 Filament
• Location: Ipojuca, Pernambuco, Brazil
• Highlights: • Only integrated PTA-PET plant in South
America• Only PTA producer in South America• 1 of 3 PET plants in South America• Brazil is largest polyester export mkt for Alpek
General
JV formed to acquire, complete and operate the Corpus Christi project
35
Highlights - Corpus Christi Polymers LLC (CC Polymers)
Contributions as of 1Q18(US$ Millions)
• Newly formed JV between Alpek, Indorama and Far Eastern (FENC)
• Acquired Corpus Christi assets (U.S. $1.199 B)
• Obtained regulatory clearance from FTC
• Does not include cost to complete (amount TBD)
• JV will operate as toll manufacturer for Alpek, Indorama and Far Eastern
• Board of independent managers
• Each partner will:
• Independently procure its raw materials
• Independently sell and distribute their PTA and PET
Alpek (Cash)
Indorama
FENC
Total Value: US$ 1,199 M
399 M
399 M
266 M
133 M
Alpek
(Non-cash)
(1) U.S. $133M non-cash contribution associated to portion of Alpek’s secured claim with M&G. Alpek will also obtain U.S. $67M cash for the remainder of secured claim, subject to certain conditions
General
CC Polymers capacity share per partner
36
PTA1.3 M tons
PET1.1 M tons
Corpus Christi Plant (CC Polymers)
Raw materials
Raw materials • PET (Int.): 367 Kta• PTA: 125 Kta
• PET (Int.): 367 Kta• PTA: 125 Kta
Raw materials • PET (Int.): 367 Kta• PTA: 125 Kta
General
Alpek has signed an agreement to acquire a PET recycling plant from Perpetual Recycling Solutions
37
Alpek – Polyester Recycling Plants Perpetual
Fayetteville. USA (Fiber-grade)
Pacheco. Argentina (Food-grade)
• Capacity: 45 Ktons (rPET)
• Location: Richmond, Indiana
• Highlights:
• +60% increase in Alpek rPET capacity
• Closing during 1Q19Richmond, USA (High-quality/ Food-grade)
General
Alpek has effectively transformed its EPS business
38
Alpek: EPS CapacityExpandable Polystyrene (EPS)
The Americas’ installed EPS capacity 2017Total: : ̴ 600 ktons
Kta
165
230
325
65
20
75
20152014 2018Concon
Plant
(Chile)
Acquisition
from BASF
(MX/US/SA)
Altamira
Expansion
(Mexico)
42%
15%
14%
7%
21%
Nexkemia
Alpek
(Styropek)
Flint Hills
Others
Nova
General
Key PET advantages
39
Global Recycling Rate (%)
55
14
• 100% recyclable
• Lower cost and energy consumption vs
aluminum and glass
• Lightweight and resistant
Other PlasticsPET
Source: Ellen MacArthur Foundation (“The New Plastics Economy”)
General
U.S.A. PET antidumping case (2016)
40
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 – 1541 % 8 – 19 %
Oman 0 % 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
General
U.S.A. PET antidumping case (2017)
41
Case Calendar
• September’17: Petitions filed
• 4Q17: Investigation initiated by Department of Commerce
(“DOC”) and International Trade Commission (“ITC”)
• April´18: Affirmative preliminary determinations
• September’18: Final affirmative determinations by DOC
• October’18: Negative injury determination by ITC
• November’18: Filed appeal of negative injury determination
Countries under
investigation
• Brazil
• Indonesia
• South Korea
• Pakistan
• Taiwan
General
Polyester ChainPTA, PET, and Polyester Fibers
42
EBITDA 2018
US$ 5,174 Million
Revenues 2018
US$ 788 Million
General Information
Selenis, Quebec.
PET
Cedar Creek, NC
PET, R-PET
Cooper River, SC
PET & PSF
Columbia, SC
PTA & PET
Pearl River, MI
PETAltamira, Tamps.
PTA
Zárate, Arg.
PET
Pacheco, Arg.
PET
Monterrey, N.L.
Headquarters
Polyester Filament
Cosoleacaque, Ver.
PTA & PET Ipojuca, Brazil
PTA, PET and Fibers
Employees: ~4,300
Products (Capacity):
• PTA (2,890 Kta)
• PET (2,464 Kta)
• rPET (115 Kta)
• Fibers (400 Kta)
Raw Materials:
• Paraxylene (Px)
• Monoethyleneglycol (MEG)
• Acetic Acid and Isopthalic Acid (IPA)
End Markets:
• Food and beverage
• Textile
• Consumer Goods
Source: Alpek
Richmond, Virginia
rPET
General
Plastics & ChemicalsPP, EPS, CPL and Others
43
General Information
EBITDA 2018
US$ 1,713 Million
Revenues 2018
US$ 276 Million
Ocotlán, Jal.
Nylon 6
Monterrey, N.L.
Headquarters,
Lerma, Edo. De Mex.
Specialty Chemicals
Altamira, Tamps.
PP, EPS
Salamanca, Gto.
CPL and Fertilizers
Guaratingueta, Brazil
EPS
Santiago, Chile
Other
Puerto Montt, Chile
Other
General Lagos, Argentina
EPS
Concon, Chile
EPS
Source: Alpek
Employees: ~1,600
Products (Capacity):
• Polypropylene - PP (640 Kta)
• Expandable Polystyrene - EPS (325
Kta)
• Caprolactam - CPL (85 Kta)
• Other (117 Kta)
Raw Materials:
• Propylene, Styrene, Cyclohexane,
Ammonia, Sulphur, Pentane, Ethylene
Oxide, Propylene Oxide and Others
End Markets:
• Consumer Goods
• Food and Beverage
• Construction
General
Alpek is managed by an experienced team focused on delivering value to shareholders
44
Po
lye
st
er
Pla
sti
cs
&
Ch
em
ica
lsP
oly
es
ter
Pla
sti
cs
&
Ch
em
ica
lsP
oly
es
t
er
Pla
sti
cs
&
Ch
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ica
l
s
Name PositionYears with
Alpek / Alfa
José de Jesús Valdez Simancas CEO 43
José Carlos Pons de la Garza CFO 23
Felipe Garza Medina Co-President, Alpek Polyester 42
Jorge Young Cerecedo Co-President, Alpek Polyester 29
Gustavo Talancón Gómez President, Polyester Filaments 30
Alejandro Llovera Zambrano President, Polypropylene 34
José Luis Zepeda Peña President, EPS and Chemicals 33
Gustavo Talancón Gómez President, CPL and Ammonium Sulfate 30
Po
lye
ste
rP
las
tic
s&
Ch
em
ica
ls
Source: Alpek
General
Organization Chart
45
Plastics & ChemicalsPolyester Chain
Felipe GarzaCo-President
Alpek Polyester
Jorge YoungCo-President
Alpek Polyester
Alejandro Llovera
President, Polypropylene
Gustavo TalancónPresident, Polyester Filaments
José Carlos Pons de la
GarzaCFO
José de Jesús ValdezCEO
José Luis Zepeda
President, EPS and Chemicals
Gustavo Talancón
President, CPL and Ammonium
Sulfate
Source: Alpek
General
Polypropylene Chain
46
1) 1.02 ton Propylene per ton PP
Propylene
Refinery
Cracker
Polypropylene
1
Source: Alpek
General
EPS & CPL Chain
47
1) 0.29 ton Ethylene per ton Styrene2) 0.79 ton Benzene per ton Styrene3) 0.94 ton Benzene* per ton Cyclohexane4) 1.04 ton Cyclohexane per ton CPL5) 0.90 ton Ammonia pero ton CPL6) 1.00 ton Styrene per ton EPS
* dls/gal x 299.3 = dls/ton
Gasoline
Reformer Benzene
Refinery
Crude Oil
EPS
Ethylene
Styrene
Cyclohexane Caprolactam
(CPL)
Cracker
Ammonia
1
3
2
4
5
6
Source: Alpek
General
Alpek has been a reliable partner to other global industry leaders through successful joint ventures
48
+ +
World leader in PP production with
sales in more than 100 countries
Largest petrochemical company in the
world with more than 370 sites
51.0%50.0%
+ 1 Share
Alpek: Sample Joint Venture
Source: Alpek
General
Alpek has grown at a 8% annualized rate since 1988 through M&A, JVs and organic projects
49
Sales Volume 1986-2018
(Index: 1986=100)
1988 1993 1998 2003 2008 2013 2018
U.S. PTA/PET
plant
acquisitions
First power
cogeneration
plant
CPL plant
acquisition
First recycling
plant (JV)
Acquisitio
n of first
PTA plantPP plant
start-up (JV)
First U.S.
polyester
plant
acquisitions
EPS capacity
expansion
(JV)
IPO (BMV)
Polyester
acquisition
in Brazil
Source: Alpek
General
The Americas PTA / PET capacity breakdown
50
The Americas
2018 Installed capacity
PTA PET
Ktons USA Mexico Canada Brazil Total
Alpek 640 1,610 - 640 2,890
Indorama 967 - 600 - 1,567
BP 1,400 - - - 1,400
Eastman 250 - - - 250
Total 3,257 1,610 600 640 6,177
Ktons USA Mexico Canada Brazil Argentina Total
Alpek 1,495 185 144 450 190 2,464
Indorama 812 480 - 550 - 1,842
M&G 560 - - - 560
Nan Ya 445 - - - - 445
FENC 270 - - - - 270
Total 3,022 1,225 144 1,000 190 5,581
Source: PCI adjusted with Alpek’s official capacities
General
Alpek operates a state-of-the-art portfolio of proprietary and third-party technologies
51
Alpek: Proprietary and Third Party Technologies
Proprietary
Technologies
(I&D, acquisitions)
Third-Party
Technologies
PTA
• Integrex PTA
PET
• Integrex PET
• Melt – TekTM
Oilfield Chemicals
• In-house
technology
Polypropylene
• Spheripol (LB)
• Spherizone (LB)
EPS
• Single Step
(BASF)
Caprolactam
• HSO
• DSM
Source: Alpek
General
Alpek’s IntegRex® technology simplifies both PTA and PET production processes
52
PTA / PET: Process diagram
Steps eliminated with
IntegRexTM technology
Benefits from IntegRexTM 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
Oxidation
Post-Oxidation
Filtration and
Drying
CTA Storage
Filtration and
Drying
Feed prep
Hydrogenation
Crystallization Crystallization
PTA Storage
Polymerization
Precursor
Storage
Esterification
Pre-Poly
Annealing
Solid State
Polymerization
Crystallization
PET Resin
Pelletization
Precursor
Preheating
Source: Alpek
General
Power tariffs (Mexico)
53
Mexico Reference Power Tariff 1
7.8 7.8 7.8 7.77.4
7.77.4
5.76.0
6.6
7.4 7.68.0
9.5
10.8
12.0 11.9
11.1
8.9
Oct OctJulJun MayAug DecSep JanNov Feb Mar Apr Jun AugJul Sep DecNov
20172018
1) Mexico reference power tariff: “Demanda Industrial en Subtransmisión (DIST) del Sistema Interconectado Nacional (SIN), 100% factor de carga”
General
Brent Crude Oil
Brent
20
100
40
80
60
120Dls/Bbl
99 $/bbl
53 $/bbl
2014 2015 2016 2017
44 $/bbl
Guidance 2019
($68/bbl)
2019
54 $/bbl
2018
71 $/bbl
• Δ 1 US$ dollar / Bbl = ~ Δ 3 US$ Million EBITDA
General
Propylene and Styrene Prices
55
North America Propylene Contract Price North America Styrene Spot Price
50
42
3331
31
3836
42
48
52
46
39
3939
47
48 49
59
53
46
51
59
5961
6060
50
42
M4Q D1Q JJ2Q D2Q3Q 1Q 4Q F M A J A3Q AO N J SF M M J J
33
A O N
40
5047
S
2015 2016 2017 2018
44
59
48
39
42
4644
49
59
74
63
50
46
48 50
55
60
52
53
57 60
72
68
59 59
56
60
5856
4441
J A2Q1Q2Q3Q4Q1Q 3Q4Q J F M A
59
OM MJ A S O N D J F SM J J A N D
2015 2016 2017 2018
(c / lb
)
(c / lb
)
General
Paraxylene (Px) Price
56
PX USA Contract Price1,708
1,635
1,543
1,014970
1,168
948882
838920
871926
995
898981 1,003
1,0691,119
1,444
1,146
4Q15 3Q1620122011 4Q162013 2014 1Q15 1Q183Q152Q15 1Q16 2Q16 1Q17 2Q17 3Q17 4Q17 2Q18 3Q18 4Q18
(US
$ / To
n)
General
PET Margin (Asia)
57
Margin: Asia PET to Px/MEG
(US
$ / To
n)
2016 2017
PTA
PET
201
74 71 69 63 59 71 64 63 60 72 80 81104
133 135 118
284
11 13 1Q1512 2Q14
240
3Q 4Q 1Q
333
2Q 3Q 4Q 1Q 2Q 3Q 4Q
263
394
258
210
270
230
377
210
260
212
478
276
342
China
250
2018
Source: ICIS, PCI, CCFGroup, Alpek
General
Polypropylene Margin (USA)
58
Margin: Polypropylene to Propylene (PGP)
(c / lb
)
2015 2016 2017 2018
1011 11 11 11
15
20
26
30
28
23
18 18 18
20 20 20
22
20
23
1Q2011 1Q2013 3Q2012 4Q 4Q3Q2014 2Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 4Q3Q
General
Caprolactam Margin
59
Margin: CPL Spot (Asia) to contract Benzene (NA)2,108
1,181
1,013
797
986 985
704641
584647 637
781
1,192
819
933
1,108 1,1271,215
1,2671,188
4Q4Q2Q 3Q2011 2012 2013 1Q2014 1Q 4Q2Q 3Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q
(US
$ / To
n)
2015 2016 2017 2018
General
Stock Highlights (BMV: ALPEK)
60
Daily Average Traded Shares & ValueDaily Stock Price
43
0
65
3
1
4
2
5
0
6
21
D FJ F JAF OAM M MJ J JS N AM A J J S O N D
2019
(Pe
so
s)
15
20
25
30
35
SepJan May EneSep May Jan
Shares
Value ($)
(M Shares) (U.S. $ M)
20172017 20182018
Valuation 4Q15 4Q16 4Q17 4Q17 Proforma
4Q18 4Q18 Proforma
Market Cap. (U.S.$ B) 3,113 2,193 2,951 2,951 2,884 2,884
Net Debt (U.S.$ M) 722 1,042 1,262 1,262 1,832 1,832
EBITDA LTM (U.S.$ M) 630 669 384 497 1,063 843
Enterprise Value / EBITDA 6.5 5.2 11.6 9.0 4.7 5.9
Price / Earnings 13.3 8.0 N/A 13.8 3.8 7.1
Price per Share (MXN) 25.98 21.10 26.50 26.50 27.00 27.00
Exchange Rate (MXN/USD) 17.67 20.35 19.00 19.00 19.83 19.83
2019
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