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Corporate Presentation
3Q17
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.
20.5
Index
• Business Overview
• Consolidated Financials
• Appendix
Index
• Business Overview
• Consolidated Financials
• Appendix
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
Alpek is a leading petrochemical company focused
on Polyester chain products, mainly PTA and PET
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
Alpek Polyester2
PTA / PET Polyester Fibers
Polyester (72% of sales) Plastics & Chemicals (28% of Sales)
PolypropyleneExpandable
Polystyrene
Caprolactam
& FertilizersOthers
Indelpro3 Styropek Unimor Polioles4
Revenues1: US$ 5.1 Billion
EBITDA1: US$ 376 Million (US$ 489 Million ex-A/R impairment)
Source: Alpek
Polyester Chain
Gasoline
Reformer Paraxylene
Crude Oil
Fibers
PET
PTA
MEGEthyleneCrackerEthane
Naphtha Ethylene Oxide
Polyester
7
Alpek´s products are widely used for food
packaging and consumer end-markets
Source: Alpek estimates
Kta: Thousand tons per year
Volume by Industry 2016(3,938 Kta)
Consumer
Goods
32%
Textiles
7%Construction
3%
Sales Geography 2016(4,838 Kta)
Europe
3%
Mexico
37%
USA
44%
Asia and Others
1%LatAm
14%
Food and
Beverages
58%
Canada
1%
8
Sample End Users by Industry
Beverage Food Personal care Textiles
Alpek is the largest integrated polyester producer
in North America (PTA-PET)
Source: PCI adjusted with Alpek’s official capacities
2016 Capacities, 2016 M&As
PTA(5,550 kta)
Indorama
NanYa
M&G
42%
PET(4,391 kta)
North America
2016 Installed Capacity
9
BP
Indorama
Eastman
41%
29%
19%
10%
30%
25%
5%
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 1,000 640 165
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: 5,755 Kta 2,250 2,014 89 310 640 250 85 117
AB
CD EF
GIHJ
LMN
O
P
Q
R
K
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
lye
ste
rP
las
tic
s &
Ch
em
ica
ls
11
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 $965 M invested up to Sep-17
Alpek also holds a successful M&A track record
and is constantly evaluating potential targets
Attractive Market Potential
Existing/Related Business
Cost Competitiveness
M&A Deals (2011-2016)M&A Guidelines
Product Capacity Year Country Investment
1. EastmanPTA /
PET1.3 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. Petroquimica
Suape (1)
PTA 700 ktons
2018
est.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 13
YTD Volume, Revenues and Capex in line with
guidance; EBITDA affected by M&G provision
3,0793,036
4,1063,9383,9373,931
20162015 2017G YTD17G2014 YTD17
-1%
Sales Volume Revenues
EBITDA CAPEX
Source: Alpek estimates
373
243
502
669630
434
2014
-35%
YTD17GYTD172017G20162015
200206238
345317320
+3%
2014 2017G YTD17GYTD1720162015
(Kto
ns
)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
3,8553,910
5,0694,8385,284
6,471
+1%
YTD172014 YTD17G2017G20162015
% Sales 6.7% 9.9%11.9% 13.8%
14
6.2% 9.7%
EBITDA vs. Guidance (YTD17)
US$M YTD17 YTD17G
Polyester 180 225
Plastics & Chemicals 170 149
Comparable 351 373
Inventory gain 6 -
M&G A/R Provision (113) -
Reported 243 373
Alpek EBITDA vs Guidance
2436212
12260
373
113
Secondary
feedstocks
(IPA)
Polyester
Outages
2Q17
YTD17
Ex-M&GYTD
17G
M&G A/R
Provision
Other YTD17Inventory
gain
-6%
15
Lower 2017 EBITDA guidance mainly due to
normalization of PP margins after 1Q16 peak
16
2723
8924
502
637669
EBITDA
2017G
Others
4
PolyesterComparable
EBITDA
2016
8
EPS
Margin
PP
Margin
Non
operating
items
EBITDA
2016
Inventory
gain
17
26
18
111111
2012 2013 2014 20162015 2017
Average Margin:
Polypropylene to Propylene (PGP)(c/lb)
181818
23
2830
26
20
15
11
20
2Q173Q173Q162Q16 1Q174Q162Q153Q15 1Q164Q151Q15
Alpek: EBITDA(M dls)
Relevant events – forward looking
● M&G’s financial distress
▪ Support M&G Altamira PET plant restart
▪ Focus on restructuring processes for M&G Mexico and Corpus Christi)
● Sale of Cosoleacaque and Altamira power cogeneration plants
▪ Exclusivity with ContourGlobal
● CADE approval process - PQS acquisition (Brazil)
● PET antidumping cases in U.S.A. and Canada
▪ USA: DOC and ITC investigations initiated 4Q17
▪ Canada: preliminary duties imposed in 4Q17 (22% - 77%)
17
Index
• Business Overview
• Consolidated Financials
• Appendix
Sales Volume and Revenues
+2%
77%78%
4,006
20162015
23%
3,937
23%
LTM 17
3,9383,931
24%22%
77%
2014
76%
Sales Volume Revenues
+4%
4,838
28%
5,0365,284
71%
LTM 17
27%
2015
27%
2016
71%
29%
6,471
2014
73%
73%
(Kta
)
(US
$ M
illi
on
)
Polyester Plastics & Chemicals
Source: Alpek estimates 19
Income Statement Accounts
532481
286
LTM 1720162014 2015
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
60
95
155
2015 20162014 LTM 17
198175
65
2016 LTM 172014 2015
(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% -5.1%1.0%% Sales
669630
434
LTM 172014 20162015
13.8%11.9%6.7%
20
-3.9%
7.4%
489
376
155
ex-M&G347ex-M&G
ex-M&G
ex-M&G
201
261
Balance Sheet Accounts
488
694632
685
201620152014 Sep 17
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
2,1171,955
1,8201,861
201620152014 Sep 17
1,192
1,042
722715
2015 20162014 Sep 17
1,628
2,0192,0052,028
201620152014 Sep 17
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
505347 45NWC Days
21
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
201620152014 LTM 17
1.6
1.1
1.6
2.4
2014 2015 LTM 172016
3.2
280
345317320
LTM 172014 2015 2016
(Tim
es
)
(Tim
es
)
(US
$ M
illio
n)
170160
110
LTM 1720162014 2015
EBITDA / Ton
(US
$ / T
on
)
22
ex-M&G5.4
7.0 ex-M&G
ex-M&G
94
122
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)
(1) A small portion of debt is denominated in ARS
300
650
50
221
27
154
224
447
20232021202020192018 20222017Cash
23
Dividends paid to shareholders
143
111
95
114
100
129
20162015 20172014(1)20132012
(1) Paid in December2013
(US
$ M
illio
n)
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
Source: Alpek
(1) Times: Last 12 months.
Alpek: Selected Financial Information
27
(%) 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
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)
967998981988 9701,038986
4Q1Q 2Q 3Q
143157
208
171
133
3
82
158
1Q 2Q 3Q 4Q
1,2191,2361,2371,182 1,1831,3061,293
4Q2Q 3Q1Q
295048
7228
-400
25
87
2Q1Q 4Q3Q
1.4% 6.1%
-97.9% -902.8%
Ch.% Ch.%
Ch.% Ch.%
0.3% -2.9%
-6.8% -4.2%
-0.2% 9.4%
-7.9% 20.4%
(US
$ M
illio
n)
5.8% 5.5%
-60.5% -48.5%
282015 2016 2017
1,012
ex-M&G
1,312
3
Latest Quarter Results
Source: Alpek
Alpek: Net Income
Alpek: Cash Flow
29
(%) 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
(%)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
Comparable EBITDA and 2017 Guidance (ex-M&G)
30
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
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
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
Polyester Chain
PTA, 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 LTM 17
US$ 3,103 Million
Revenues LTM 17
US$ 152 Million
General Information
Source: Alpek 31
Pearl River, MI
PET
Cedar Creek, NC
PET, R-PET
Columbia, SC
PTA & PET
Cooper River, SC
PET & PSF
Monterrey, N.L.
Headquarters
Polyester Filament
Cosoleacaque, Ver.
PTA & PET
Altamira, Tamps.
PTA
Selenis, Quebec.
PET
ARG
Zárate, Arg.
PET
Pacheco, Arg.
PET
Plastics & Chemicals
PP, 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 LTM 17
US$ 1,425 Million
Revenues LTM 17
US$ 226 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
32
Concon, Chile
EPS
Source: Alpek
Alpek is managed by an experienced team focused
on delivering value to shareholders
Source: Alpek
Po
lye
ste
rP
las
tic
s&
Ch
em
ica
ls
Name PositionYears with
Alpek / Alfa
José de Jesús Valdez Simancas CEO 40
Eduardo Escalante Castillo CFO 29
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
Po
lye
ste
rP
las
tic
s&
Ch
em
ica
ls
33
Plastics & Chemicals
Organization Chart
Source: Alpek
Polyester Chain
Felipe GarzaCo-President
Alpek Polyester
Jorge YoungCo-President
Alpek Polyester
Alejandro Llovera
President, Polypropylene
Jorge GonzálezPresident, Polyester Filaments
Eduardo Escalante
CFO
José de Jesús ValdezCEO
José Luis Zepeda
President, EPS and Chemicals
Gustavo Talancón
President, CPL and Ammonium
Sulfate
34
Polypropylene Chain
Source: Alpek
Propylene
Refinery
Cracker
Polypropylene
35
Gasoline
Reformer Benzene
Refinery
Crude Oil
EPS
EPS & CPL Chain
Source: Alpek
Ethylene
Styrene
Cyclohexane Caprolactam
(CPL)
Cracker
Ammonia
36
+ +
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
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)
CabelmaPET
Coso 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)
DMT
Expansion EPS
Expansion
Polypropylene
expansion
EPS
acquisition
Source: Alpek
Sales Volume 1986-2016(Index: 1986=100)
38
Selenis/ Concon
Acquisition
Organic growth and acquisitions position Alpek as
a leading PTA and PET producer in North America
2004(5,500 Kta)
2016(5,550 Kta)
2004 (3,800 Kta)
2016(4,931 Kta)
PTA – Installed Capacity(1)
PET – Installed Capacity(1)
InvistaInterquisa
Eastman
BP
Others
M&G
Indorama
NanYa
Wellman
Invista
Eastman
NanYa
M&G
IndoramaSource: PCI
(1) In North America
29%
41%
8%
42%
39
BP
Eastman
Indorama
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
Alpek: Proprietary and Third-Party Technologies
Source: Alpek
40
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
Power cogeneration overview
Contract-based
power
customers
Ga
s
turb
ine
Heat Recovery
Cogeneration plant
Ste
am
turb
ineNatural 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
M&G’s Corpus Christi site capacity breakdown
420 Ktons
PTA1.3 M tons
M&G850 Ktons
500 Ktons
M&G600 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.)
43
Alpek has effectively transformed its EPS business
The Americas’ installed EPS capacity 2017ETotal: 600 ktons
Flint Hills
Nexkemia42%
Others
8%
Nova18%
17%
15%
Alpek
(Styropek)
32575
23065
165
20
2018Altamira
Expansion
Concon
Plant
2015Acquisition2014
Kta
Alpek: EPS capacityExpandable Polystyrene (EPS)
44
Alpek acquired a controlling interest in Selenis
Canada Inc.
45
• 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
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
46
• Rates applicable for a minimum period of five years.
• Trade orders could be renewed in five-year increments
U.S.A. and Canada PET antidumping case (2017)
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
47
2017 average Brent price estimated at $55/bbl
Brent Crude Oil
48
40
100
60
20
80
120
Dls/Bbl
99 $/bbl
53 $/bbl
2014 2015 2016 2017
44 $/bbl
Guidance 2017
($55/bbl)
• Δ 1 US$ dollar / Bbl = ~ Δ 3 US$ Million EBITDA
981898
995926
871920
838882
948
1,168
9701,014
1,543
1,6351,708
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
49
Propylene and Styrene Prices
North America Propylene Contract Price North America Styrene Spot Price
50494847
40393939
46
52
48
42
3638
33313133
42
50
70717073
JM SJAE F O4Q M A1Q 2Q3Q2Q 4Q1Q 3Q4Q 3Q1Q2Q DN
2014 2015 2016 2017
57
5352
60
55
504846
50
63
74
59
49
4446
4239
48
59
44
59
7171
75
AF J OME4Q J SM A3Q4Q4Q 2Q1Q1Q 3Q2Q2Q 1Q3Q DN
2014 2015 2016 2017
(c / lb
)
(c / lb
)
50
Margin: Asia PET to Px/MEG
(US
$ / To
n)
PET Margin (Asia)
2016
51
2017
PTA
PET
201
74 71 69 63 59 71 64 63 60 72 80 81
232
237222
214200
1Q14
230
258
13
284
210
270
212
12 15
394
3Q
210
240
1Q
263
4Q
276
2Q 4Q2Q 3Q11
260
China
250
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 to Contract Benzene
(US
$ / To
n)
Caprolactam Margin (US)
52
2015 2016 2017
Alpek stock highlights (BMV: ALPEK)
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
3
1
6
5
4
3
5
1
2
0 0
2
6
4
DNOJ S OA F AJ MDN J SM JA
Daily Average Traded Shares & Value
2016
Daily Stock Price
(Pe
so
s)
20
25
30
35
15
40
Jun Sep Dec Jun SepMar Dec
2016
Performance ALPEK IPC DJI
December 2017 0.2% 4.8% 1.8%
YTD (Dec-17) -5.3% 8.1% 25.1%
Shares
Value ($)
(M Shares) (U.S. $ M)
53
20172017
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
54
Alpek’s exposure to M&G
US$M Guarantee
Capacity Reservation Corpus Christi 435 Corpus Christi assets (2nd lien)
Accounts Receivable 113 Unsecured
M&G Mexico Loan (Acquired) 100 M&G Mexico PET plant in Altamira (1st lien)
$90 M Loan 90 Corporate guarantees
55
Non-recurring charges associated to M&G
Income Statement Balance Sheet
US$MYTD17
(ex-M&G)
M&G
ChargeYTD17
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 interest127 (416) (289)
Net Debt 1,192 1,192
Net Debt / EBITDA 2.4 3.2
US$MSep-17
(ex-M&G)
M&G
ChargeSep-17
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
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
PTA PET
Source: PCI adjusted with Alpek’s official capacities
2016 Capacities, 2016 M&As
North America
2016 Installed Capacity
57