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General
Corporate Presentation
4Q17
General
This presentation contains, or may be deemed to contain, “forward-looking statements”. By their nature, forward looking statements involverisks and uncertainties because they relate to events and depend oncircumstances that may or may not occur in the future. The future resultsof Alpek, S.A.B. de C.V. And its subsidiaries may differ from the resultsexpressed in, or implied by the forward-looking statements set outherein, possibly to a material degree.
21.2
General
Index
• Business Overview
• Consolidated Financials
• Appendix
General
Index
• Business Overview
• Consolidated Financials
• Appendix
General
Investment Highlights
5
Market-leading position in the Americas1
High-return integration and cost-saving projects3
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
Alpek is a leading petrochemical company focused on Polyester chain products, mainly PTA and PET
6
Alpek Polyester2
PTA / PET Polyester Fibers
Polyester (72% of sales) Plastics & Chemicals (28% of Sales)
PolypropyleneExpandable Polystyrene
Caprolactam& Fertilizers
Others
Indelpro3 Styropek Unimor Polioles4
Revenues1: US$ 5.2 BillionEBITDA1: US$ 384 Million (US$ 497 Million ex-A/R impairment)
Source: Alpek estimates
(1) 2017
(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.
General
Polyester Chain
Gasoline
Reformer Paraxylene
Crude Oil
Fibers
PET
PTA
MEGEthyleneCrackerEthane
Naphtha Ethylene
Oxide
Polyester
7Source: Alpek
General
Alpek´s products are widely used for food packaging and consumer end-markets
Source: Alpek estimates
Kta: Thousand tons per year
Volume by Industry 2017(4,012 Kta)
Consumer Goods
25%
Textiles7%
Construction2%
Sales Geography 2017(US$ 5,231 Million )
Europe3%
Mexico 35%
USA 44%
Asia and Others1%
LatAm13%
Food and Beverages
66%
Canada3%
8
Sample End Users by Industry
Beverage Food Personal care Textiles
General
Alpek is the largest integrated polyester producer in North America (PTA-PET)
1) Far Eastern (“FENC”) acquired Apple Grove assets from M&G on January 30th 2018
Source: PCI adjusted with Alpek’s official capacities
2017 Capacities, 2018 YTD M&As
PTA(5,550 kta)
M&G
FENC1
Indorama
NanYa
42%
PET(4,391 kta)
North America2017 Installed Capacity
9
BP
Indorama
Eastman
41%
29%
13%
10%
30%
25%
5%
6%
General
Alpek’s installed capacity amounts to 5.8 M tons; 23 production facilities and ~5,200 employees
Source: Alpek estimates
Kta: Thousand tons per year
(1) Includes industrial and specialty chemicals and recycled PET capacities
Location of Production Sites Installed Capacity Breakdown (Kta)
10
Site PTA PET rPET Fibers PP EPS CPL Other
Mexico(2,950 Kta)
A Monterrey 160
B Altamira 1,000 640 240
C Salamanca 85
D Ocotlán 10
E Cosoleacaque 610 185
F Lerma 100
USA(2,343 Kta)
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 Capacity1: 5,830 Kta 2,250 2,014 89 310 640 325 85 117
AB
CD EF
GIHJ
LMN
O
P
Q
R
K
General
Alpek has developed a leading position in every product of its portfolio
Source: PCI and Alpek estimates
(1) In North America
(2) In the Americas, including recent EPS acquisition
Alpek: Industry Position
Industry Position Comments
PTA #1 in North America • Attractive industry structure• 41% est. installed capacity share1
PET#1 in North America #2 Worldwide
• 42% est. installed capacity share1
Fibers #2 in North America• Leading supplier of filament for car seatbelts• 26% est. installed capacity share1
PP Only producer in Mexico • Attractive growth potential
EPS #1 in the Americas• Largest plant in the Americas• 40% est. installed capacity share2
CPL Only producer in Mexico • Among top 5 lowest cost producers worldwide
Po
lyeste
rP
lasti
cs &
C
hem
icals
11
General
Alpek is investing in attractive organic projects to boost profitability
Strategic Guidelines
Source: Alpek estimates
Project OverviewEstimated figures and dates
● Capture natural gas, ethane and propane
advantage in North America
● Maximize operating efficiency
● Selective capacity expansion
● Lever IntegRex® technology
12
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 2018
6. PTA/PET Site (Corpus Christi) 435 100 TBD
Total ~ $1 B ~$260
US $978 M invested up to Dec-17
General
Alpek also holds a successful M&A track record and is constantly evaluating potential targets
13
Attractive Market Potential
Existing/Related Business
Cost Competitiveness
M&A Deals (2011-2016)M&A Guidelines
Product Capacity Year Country Investment
1. EastmanPTA / 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
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
Alpek M&A
7. PetroquimicaSuape (1)
PTA 640 ktons
2018est.
Brazil US $385 MPET 450 Ktons
Fibers 90 ktons
(1) Subject to corporate and governmental approvals after suspension imposed on the assets’ sale is resolved by Petrobras
General
Guidance 2018
4,1354,0123,9383,9373,931
20152014 20172016
+3%
2018G
Sales Volume Revenues
EBITDA CAPEX
Source: Alpek estimates
569
669630
434384
2015
+48%
2017 2018G2014 2016
167
345317320
236
-29%
2014 2018G2015 2016 2017
(Kto
ns)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
5,4134,838
5,284
6,471
5,231
2014 2018G201720162015
+3%
% Sales 6.7% 7.3%11.9% 13.8%
14
10.5%
General
EBITDA: 2017 vs 2018 Guidance
15
22569
99
113384
2017 2018G
5
M&G A/R Provision
Inv. Val.P&ChPolyester
Alpek: EBITDA(M dls)
US$M 2017 2018G
Polyester 246 346
Plastics & Chemicals 229 224
Comparable 475 569
Inventory gain 22 -
M&G A/R Provision (113) -
Reported 384 569
General
Relevant events – forward looking
● M&G’s Restructure
� Support M&G Altamira PET plant operations (tolling agreement + US $60 M secured credit facility)
� Focus on Altamira and Corpus Christi restructuring processes
● Sale of Cosoleacaque and Altamira power cogeneration plants
� Advanced process with ContourGlobal
● PQS acquisition (Brazil)
� Transaction approved by CADE (Feb 2018)
● PET antidumping cases in U.S.A. and Canada
� USA: DOC and ITC investigations initiated 4Q17
� Canada: preliminary duties imposed in 4Q17 (22% - 77%)
16
General
Index
• Business Overview
• Consolidated Financials
• Appendix
General
Sales Volume and Revenues
2016
3,9383,937
+2%
3,931
78%
23%24%
2015
23%
2017
4,012
77%77%
2014
76%
22%
Sales Volume Revenues
29%
2015
5,284
+8%
5,231
71%
29%
20172016
4,838
71%
73%
2014
27%
73%
27%
6,471
(Kta
)
(US
$ M
illi
on
)
Polyester Plastics & Chemicals
Source: Alpek estimates 18
General
Income Statement Accounts
532481
286
2015 201720162014
Operating Income EBITDA
Financial Cost, Net (1) Majority Net Income
Source: Alpek estimates
(1) Financial Cost, Net = Net Financial Expenses + Fx Gains (Losses) + Interest Rate Swaps + Gas & Comm. Derivatives
133116111
93
95
188
2017201620152014
198175
65
2014 2015 20172016
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
11.0%9.1%4.4%% Sales
% Sales
4.1%3.3% -6.1%1.0%% Sales
669630
434
2014 20172015 2016
13.8%11.9%6.7%
19
-3.6%
7.3%
497
384
162
ex-M&G360 ex-M&G
ex-M&G
ex-M&G
188
319
General
Balance Sheet Accounts
497
694632
685
20162014 20172015
Net Working Capital(1) Property, Plant and Equipment
Net Debt(2) Stockholders’ Equity
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
2,1051,955
1,8201,861
20152014 2016 2017
1,262
1,042
722715
2014 201720162015
1,604
2,0192,0052,028
20172014 2015 2016
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
445347 45NWC Days
20
General
Financial Ratios and Other Indicators
Interest Coverage(1)Net Debt / EBITDA
CAPEX
Source: Alpek estimates
(1) Interest coverage= EBITDA / Net financial expenses
7.0
10.7
6.5
2014 2015 20172016
1.6
1.1
1.6
2.5
2014 2016 20172015
3.3
236
345317320
20162014 20172015
(Tim
es)
(Tim
es)
(US
$ M
illio
n)
170160
110
20162014 2015 2017
EBITDA / Ton
(US
$ / T
on
)
21
ex-M&G 4.8
6.2 ex-M&G
ex-M&G
94
124
General
Alpek Consolidated Debt Profile December 2017
● Gross Debt: U.S. $1,747 million
● Net Debt: U.S. $1,262 million
● Available Committed Credit Lines: U.S. $166 million (Total: U.S. $430 million)
● 99% of our debt is denominated in US dollars(1)
(1) A small portion of debt is denominated in ARS
300
715
105
241
12
362
484
20212019 202320202018 2022Cash
22
General
Dividends paid to shareholders
23
143
111
95
114
100
129
20162014(1) 20172012 20152013
(1) Paid in December2013
(US
$ M
illio
n)
General
Index
• Business Overview
• Consolidated Financials
• Appendix
General
Operating & Financial Highlights (4Q17)
Alpek
• 4Q17 Consolidated EBITDA of U.S. $141 million, including a U.S. $16 million non-cash inventory gain; rapid recovery after 3Q17
• Cogeneration power plants’ sale process advanced with ContourGlobal• 3.3 times Net Debt/EBITDA; 2.5 times excluding M&G A/R provision (U.S. -
$113 million)
Polyester
• M&G Mexico resumed PET production in 4Q17; Alpek supplies PTA via tolling agreement and secured credit facility
• The Court of the Administrative Council for Economic Defense in Brazil (CADE) approved the acquisition of PetroquímicaSuape and Citepe
• PET antidumping cases moving forward in the United States and Canada
Plastics &
Chemicals
(P&C)
• 4Q17 P&C EBITDA of U.S. $64 million, including a U.S. $5 million non-cash inventory gain
• Margin expansion in polypropylene (PP) and caprolactam (CPL) more than offsets flat 4Q17 volume
25
General
Latest Quarter Results
Source: Alpek
(1) Times: Last 12 months.
Alpek: Selected Financial Information
26
(%) 4Q17 vs.
4Q17 3Q17 4Q16 3Q17 4Q16 YTD17 YTD16 Ch.%
Total Volume (ktons) 975 1,012 970 (4) 1 4,012 3,938 2
Polyester 752 788 749 (5) - 3,105 3,004 3
Plastics & Chemicals 224 225 221 - 1 906 934 (3)
Consolidated Revenues 1,321 1,312 1,183 1 12 5,231 4,838 8
Polyester 933 945 851 (1) 10 3,724 3,444 8
Plastics & Chemicals 388 367 332 6 17 1,506 1,394 8
Consolidated EBITDA 141 3 133 4,241 6 384 669 (43)
Polyester 77 (51) 82 253 (6) 147 349 (58)
Plastics & Chemicals 64 54 52 18 21 237 322 (26)
Profit Attributable to Controlling Interest (30) (400) 28 92 (209) (319) 198 (261)
CAPEX and Acquisitions 30 64 75 (54) (60) 236 345 (32)
Net Debt 1,262 1,192 1,042 6 21
Net Debt/LTM EBITDA(1) 3.3 3.2 1.6
Interest Coverage(1) 4.8 5.4 10.5
General
Latest Quarter Results
Sales Volume Revenues
EBITDA Majority Net Income
Source: Alpek
(Kto
ns)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
970998981988 9751,0121,038986
4Q1Q 2Q 3Q
133
157
208
171
141
3
82
158
4Q1Q 3Q2Q
1,1831,2361,237
1,182
1,3211,3121,3061,293
1Q 4Q3Q2Q
285048
72
-30
-400
25
87
3Q1Q 4Q2Q
1.4% 6.1%
-97.9% -902.8%
Ch.% Ch.%
Ch.% Ch.%
0.5% 11.7%
5.5% -209.4%
-0.2% 9.4%
-7.9% 20.4%
(US
$ M
illio
n)
5.8% 5.5%
-60.5% -48.5%
272016 2017 ex-M&G
3
116
General
Latest Quarter Results
Source: Alpek
Alpek: Net Income
Alpek: Cash Flow
28
(%) 4Q17 vs.
4Q17 3Q17 4Q16 3Q17 4Q16 YTD17 YTD16 Ch.%
EBITDA 141 3 133 4,241 6 384 669 (43)
Net Working Capital & Others (37) 29 (84) (228) 55 83 (183) 145
Capital Expenditures & Acq. (30) (64) (75) 54 60 (236) (345) 32
Financial Expenses (22) (17) (16) (27) (35) (72) (58) (25)
Income tax (9) (19) (22) 50 58 (87) (164) 47
Dividends (7) (71) (20) 90 64 (176) (225) 22
Payment affiliated companies - - 8 - (100) 1 68 (99)
Other Sources / Uses (105) 5 (50) (2,325) (108) (118) (83) (42)
Decrease (Increase) in Net Debt (70) (135) (127) 48 45 (221) (320) 31
(%)4Q17 vs.
4Q17 3Q17 4Q16 3Q17 4Q16 YTD17 YTD16 Ch.%
Consolidated Net Income (20) (394) 33 95 (161) (271) 272 (199)
Non-Controlling Interest 10 6 5 65 94 49 75 (35)
Controlling Interest (30) (400) 28 92 (209) (319) 198 (261)
Earnings per Share (U.S. Dollars) (0.01) (0.19) 0.01 92 (209) (0.15) 0.09 (261)
Avg. Outstanding Shares (Millions)* 2,117 2,117 2,117 2,117 2,117
General
Comparable EBITDA and 2018 Guidance (ex-M&G)
29
Reported EBITDA 2015 2016 2017 2018G 4Q16 4Q17
Polyester 344 349 147 346 82 77
Plastics & Chemicals 284 322 237 224 52 64
TOTAL 630 669 384 569 133 141
Comparable EBITDA 2015 2016 2017 2018G 4Q16 4Q17
Polyester 378 331 234 346 66 66
Plastics & Chemicals 273 308 229 224 52 59
TOTAL 654 637 462 569 117 124
Adjustments* 2015 2016 2017 2018G 4Q16 4Q17
Polyester 35 (18) 87 - (16) (11)
Plastics & Chemicals (11) (14) (8) - - (5)
TOTAL 24 (32) 79 - (16) (16)
*Adjustments: Inventory and non-operating, one-time (gains) losses
General
EBITDA vs. Guidance (2017)
30
US$M 2017 2017G
Polyester 246 304
Plastics & Chemicals 229 198
Comparable 475 502
Inventory gain 22 -
M&G A/R Provision (113) -
Reported 384 502
Alpek EBITDA vs Guidance
38422321
32389
502
113
29
Secondary feedstocks
(IPA)
2017OthersM&G PP
US -$5 M
Inv. val.M&G A/R Provision
2017G 2017 Ex-M&G
General
Polyester ChainPTA, PET, and Polyester Fibers
Employees: 3,629
Products (Capacity):• PTA (2,250 Kta)• PET (2,014 Kta) • rPET (89 Kta)• PSF (150 Kta)• Filament and polymer (160 Kta)
Raw Materials:• Paraxylene (Px)• Monoethyleneglycol (MEG)• Acetic Acid
End Markets:• Food and beverage• Textile• Consumer Goods
EBITDA 2017
US$ 3,724 Million
Revenues 2017
US$ 147 Million
General Information
Source: Alpek 31
Pearl River, MIPET
Cedar Creek, NCPET, R-PET
Columbia, SCPTA & PET
Cooper River, SCPET & PSF
Monterrey, N.L. HeadquartersPolyester Filament
Cosoleacaque, Ver. PTA & PET
Altamira, Tamps.PTA
Selenis, Quebec. PET
ARG
Zárate, Arg.PET
Pacheco, Arg.PET
General
Plastics & ChemicalsPP, EPS, CPL and Others
General Information
Employees: 1,527
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
EBITDA 2017
US$ 1,506 Million
Revenues 2017
US$ 237 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, BrazilEPS
Santiago, ChileOther
Puerto Montt, ChileOther
General Lagos, ArgentinaEPS
32
Concon, ChileEPS
Source: Alpek
General
Alpek is managed by an experienced team focused on delivering value to shareholders
Source: Alpek
Po
lyeste
rP
lasti
cs
&
Ch
em
icals
Name PositionYears with Alpek / Alfa
José de Jesús Valdez Simancas CEO 42
Eduardo Escalante Castillo CFO 31
Felipe Garza Medina Co-President, Alpek Polyester 41
Jorge Young Cerecedo Co-President, Alpek Polyester 28
Gustavo Talancón Gómez President, Polyester Filaments 29
Alejandro Llovera Zambrano President, Polypropylene 33
José Luis Zepeda Peña President, EPS and Chemicals 32
Gustavo Talancón Gómez President, CPL and Ammonium Sulfate 29
Po
lyeste
rP
lasti
cs
&
Ch
em
icals
33
General
Plastics & Chemicals
Organization Chart
Source: Alpek
Polyester Chain
Felipe GarzaCo-President
Alpek Polyester
Jorge YoungCo-President
Alpek Polyester
Alejandro Llovera
President, Polypropylene
Gustavo TalancónPresident, Polyester Filaments
Eduardo Escalante
CFO
José de Jesús ValdezCEO
José Luis Zepeda
President, EPS and Chemicals
Gustavo Talancón
President, CPL and Ammonium
Sulfate
34
General
Polypropylene Chain
Source: Alpek
Propylene
Refinery
Cracker
Polypropylene
35
General
Gasoline
Reformer Benzene
Refinery
Crude Oil
EPS
EPS & CPL Chain
Source: Alpek
Ethylene
Styrene
Cyclohexane Caprolactam(CPL)
Cracker
Ammonia
36
General
+ +
World leader in PP production with sales in more than 100 countries
Largest petrochemical company in the world with more than 370 sites
Alpek has been a reliable partner to other global industry leaders through successful joint ventures
51.0%50.0%
+ 1 Share
Source: Alpek
Alpek: Sample Joint Ventures
37
General
Alpek has grown at a 8% annualized rate since 1986 through M&A, JVs and organic projects
1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015
PTA/PET acquisitions(USA)
CabelmaPETCoso Cogen
Acquisition of Univex
(Caprolactam)
Clear Path Recycling
Cogeneration project
Acquisition of PTA plant
Polypropylene plant start-up
Propylene splitter
installation
Acquisition of polyester business
(USA)
Acquisition of Argentina and Mexico PET plants
EPS expansion in Altamira
IPO (BMV)
DMTExpansion EPS
Expansion
Polypropylene expansion
EPS acquisition
Source: Alpek
Sales Volume 1986-2016(Index: 1986=100)
38
Selenis/ ConconAcquisition
General
Organic growth and acquisitions position Alpek as a leading PTA and PET producer in North America
2004(5,500 Kta)
2017(5,550 Kta)
2004 (3,800 Kta)
2017(4,931 Kta)
PTA – Installed Capacity(1)
PET – Installed Capacity(1)
Eastman
Interquisa
BP
Invista
Indorama
Eastman
Wellman
Invista
M&G
NanYa
Others
M&G
Indorama
NanYa
FENC1
Source: PCI adjusted with Alpek’s official capacities
2017 Capacities, 2018 YTD M&As
29%
41%
8%
42%
39
Indorama
BP
Eastman
1) Far Eastern (“FENC”) acquired Apple Grove assets from M&G on January 30th 2018
General
Proprietary Technologies(I&D, acquisitions)
Third-Party Technologies
Alpek operates a state-of-the-art portfolio of proprietary and 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
Alpek: Proprietary and Third-Party Technologies
Source: Alpek
40
General
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
Steps eliminated with IntegRexTM
technology
�
�
�
�
�
�
� �
�
�
�
Alpek’s IntegRex® technology simplifies both PTA and PET production processes
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 emissionsSource: Alpek
PTA / PET: Process Diagram
41
General
Power cogeneration overview
Contract-based power
customers
Ga
s
turb
ine
Heat Recovery
Cogeneration plant
Ste
am
tu
rbin
eNatural Gas
Electricity
Steam
Steam
12
3
1. Gas turbine generates electricity
2. Combustion gases produce steam
3. Steam is used to generate additional electricity and for Alpek’s chemical reactions
Hot gases
42
General
Alpek has effectively transformed its EPS business
43
The Americas’ installed EPS capacity 2017ETotal: 600 ktons
Flint Hills
42%
17%
15%
Alpek(Styropek)
18%
8%
Others
Nexkemia
Nova
32575
23065
165
20
ConconPlant
2018Acquisition Altamira Expansion
2014 2015
Kta
Alpek: EPS capacityExpandable Polystyrene (EPS)
General
Alpek acquired a controlling interest in SelenisCanada Inc.
44
• 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
Montreal. Canada
Charleston. USAColumbia. USA
Bay St. Louis. USA
Monterrey. México
Fayetteville. USA
Altamira. México
Cosoleacaque. México
Zárate. Argentina
Pacheco. Argentina
Alpek: Polyester production facilities
Polyester Plants (4,519 Kta)
Selenis Plant (144 Kta)
Selenis Plant
General
U.S.A. PET antidumping case (2016)
Case Calendar
• 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 %
(1) 154% only for JBF Industries Limited
Final Rates
45
• Rates applicable for a minimum period of five years.
• Trade orders could be renewed in five-year increments
General
U.S.A. and Canada PET antidumping cases (2017)
46
U.S. A.
● Petitions filed in September
� Department of Commerce (“DOC”) – initiated investigation (4Q’17)
� International Trade Commission (“ITC”) – initiated investigation (4Q’17)
Canada
● Canada Border Services Agency (“CBSA) initiated investigation in Aug-17
● Preliminary duties imposed in 4Q’17 (22%-77%); final resolution expected in 1Q’18 (duration 5 years)
Countries under investigation
U.S.A. Canada
• Brazil• Indonesia• South Korea• Pakistan• Taiwan
• China• India• Oman• Pakistan
General
2018 average Brent price estimated at $57/bbl
Brent Crude Oil
47
• Δ 1 US$ dollar / Bbl = ~ Δ 3 US$ Million EBITDA
120
80
60
20
40
100
Dls/Bbl
99 $/bbl
53 $/bbl
2014 2015 2016 2017
44 $/bbl
Guidance 2018($57/bbl)
2018
54 $/bbl
General
981898
995926
871920
838882
948
1,168
9701,014
1,5431,635
1,708
1,003
2Q’164Q’15 2Q’173Q’15 1Q’17 3Q’173Q’161Q’16 4Q’162012 2Q’151Q’1520142011 2013 4Q’17
Px USA Contract Price
(US
$ / To
n)
Paraxylene (Px) Price
48
General
Propylene and Styrene Prices
49
North America Propylene Contract Price North America Styrene Spot Price
50494847
40393939
46
5248
42
3638
333131
33
42
50
70717073
JM SJAE F O4Q M A1Q 2Q3Q2Q 4Q1Q 3Q4Q 3Q1Q2Q DN
2014 2015 2016 2017
575352
60
55
504846
50
63
74
59
49
4446
4239
48
59
44
59
717175
AF J OME4Q J SM A3Q4Q4Q 2Q1Q1Q 3Q2Q2Q 1Q3Q DN
2014 2015 2016 2017
(c / lb
)
(c / lb
)
General
Margin: Asia PET to Px/MEG
(US
$ / To
n)
PET Margin (Asia)
2016
50
2017
PTA
PET
201
74 71 69 63 59 71 64 63 60 7280 81
232
237222
214200
15
260
212 210
2Q 4Q3Q
258
4Q
394
11 13 3Q
284
2Q1Q
240
1Q
230
14
210
276270 263
12
China
250
General
Polypropylene Margin (USA)
51
Margin: Polypropylene to Propylene (PGP)
2020
181818
23
28
30
26
20
15
111111 11
20132012 2014 3Q 1Q4Q 4Q 3Q2Q2Q 4Q1Q1Q 3Q2Q
(c / lb
)
2015 2016 2017
General
933
819
1,192
781
637647584
641704
985986
797
1,013
1,181
2,108
1,108
3Q2013 2Q1Q2Q1Q 3Q4Q2014 4Q 1Q 4Q20122011 3Q2Q
Margin: CPL Spot (Asia) to Contract Benzene (NA)
(US
$ / To
n)
Caprolactam Margin
52
2015 2016 2017
General
M&G Chemicals Overview
● Founded 1953 in Toronta, Italy
● Private company; no public debt or equity
● 20-yr comercial relationship w/Alpek(11% of Alpek sales)
PTA PET
Apple Grove (USA) 270
Altamira (Mexico) 560
Suape (Brazil) 550
Corpus Christi1 (USA) 864 600
About M&G Plant locations
Installed Capacity
1) Under construction; net of Alpek’s capacity reservation
Source: PCI
Altamira
Suape
Apple Grove
Corpus Christi1
53
General
Alpek’s exposure to M&G
54
US$M Guarantee
Capacity Reservation Corpus Christi 435 Corpus Christi assets (2nd lien)
Accounts Receivable 113 Unsecured
$90 M Loan 90 Corporate guarantees
M&G Mexico Loan (Acquired) 100 M&G Mexico PET plant in Altamira (1st lien)
M&G Mexico Loan 30 US $60 M secured credit facility
General
M&G’s Corpus Christi site capacity breakdown
420 Ktons
PTA1.3 M tons
M&G
850 Ktons
500 Ktons
M&G
600 Ktons
Pearl River
PET1.1 M tons
350 Ktons PTA
Corpus Christi Site (CC)
Raw materials
(e.g. Px, MEG, etc.)
Raw materials
(e.g. Px, MEG, etc.)
55
General
Non-recurring charges associated to M&G
56
Income Statement Balance Sheet
US$M2017
(ex-M&G)Non-rec.charges
2017
Operating Income 360 (548) (188)
Intangible asset impairment (435)
A/R Provision (113)
EBITDA 497 (113) 384
A/R Provision (113)
Financial cost, net (93) (95) (188)
Taxes (52) 158 106
Net income (loss) 214 (485) (271)
Profit (loss)attributable to controlling interest
162 (481) (319)
Net Debt 1,262 1,262
Net Debt / EBITDA 2.5 3.3
US$MDec-17
(ex-M&G)Non-rec.charges
Dec-17
Assets 5,298 (546) 4,752
Trade accounts receivable 657 (113) 544
Intangible Assets – Cap Res 566 (360) 206
Other Assets – Cap Res 77 (75) 2
Other Assets – Loan 204 (95) 109
Other Assets – Deferred tax 26 97 123
Other Assets 3,769 - 3,769
Liabilities 3,208 (61) 3,147
Other Liabilities – Deferred tax 284 (61) 223
Other Liabilities 2,924 - 2,924
Stockholders’ Equity 2,089 (485) 1,604
Net Income 214 (485) (271)
Others 1,875 - 1,875
General
North America PTA / PET capacity breakdown
57
Ktons USA Mexico Canada Total
Alpek 640 1,610 - 2,250
Indorama 1,050 - 600 1,650
BP 1,400 - - 1,400
Eastman 250 - - 250
Total 3,340 1,610 600 5,550
Ktons USA Mexico Canada Total
Alpek 1,495 185 144 1,824
Indorama 812 480 - 1,292
M&G 560 - 560
Nan Ya 445 - - 445
FENC1 270 - - 270
Total 3,022 1,225 144 4,391
PTA PET
1) Far Eastern (“FENC”) acquired Apple Grove assets from M&G on January 30th 2018
Source: PCI adjusted with Alpek’s official capacities
2017 Capacities, 2017 M&As
North America2017 Installed Capacity
General
Alpek stock highlights (BMV: ALPEK)
Valuation 4Q15 4Q16 4Q17 4Q17 Proforma
2018G
Market Cap. (U.S.$ B) 3,113 2,193 2,951 2,951 2,859
Net Debt (U.S.$ M) 722 1,042 1,262 1,262 1,167
EBITDA LTM (U.S.$ M) 630 669 384 497 569
Enterprise Value / EBITDA 6.5 5.2 11.6 9.0 7.5
Price / Earnings 13.3 8.0 N/A 13.8 10.9
Price per Share (MXN) 25.98 21.10 26.50 26.50 26.0
Exchange Rate (MXN/USD) 17.67 20.35 19.00 19.00 19.25
2
1
3
0
6
5
4
2
5
0
6
1
4
3
S A OAJM MF NJNO S JDDAJ J
Daily Average Traded Shares & Value
2016
Daily Stock Price
(Peso
s)
20
15
30
25
40
35
JunMarDec Sep DecJun Sep
2016
Shares
Value ($)
(M Shares) (U.S. $ M)
58
20172017 2018
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