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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 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.
19.8
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& Fertilizers
Others
Indelpro3 Styropek Unimor Polioles4
Revenues1: US$ 5.1 BillionEBITDA1: 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%
Textiles7%
Construction3%
Sales Geography 2016(4,838 Kta)
Europe3%
Mexico 37%
USA 44%
Asia and Others1%
LatAm14%
Food and Beverages
58%
Canada1%
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 America2016 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
lyeste
rP
lasti
cs &
C
hem
icals
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
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
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%
Lower 2017 EBITDA guidance mainly due to normalization of PP margins after 1Q16 peak
15
2723
8924
502
637669
8
Inventory gain
Non operating
items
EBITDA 2016
Comparable EBITDA
2016
EBITDA 2017G
Others
4
PolyesterEPS Margin
PP Margin
17
26
18
111111
2012 2013 2015 2016 20172014
Average Margin: Polypropylene to Propylene (PGP)
(c/lb)
181818
23
2830
26
20
15
11
3Q15 4Q163Q162Q16 1Q171Q164Q15 2Q171Q15 2Q15
Alpek: EBITDA(M dls)
EBITDA vs. Guidance (YTD17)
16
US$M YTD17 YTD17G
Polyester Comp. 168 217
Plas. & Chem. Comp. 170 149
PPA Selenis 12 8
Guidance EBITDA 351 373
Val. Inv. 6 -
M&G A/R Provision (113) -
Reported EBITDA 243 373
Alpek EBITDA vs Guidance
2436212
12260
373
113
M&G A/R Provision
Secondary feedstocks
(IPA)
Polyester Outages
2Q17
YTD17 Ex-M&G
YTD 17G
Inventory gain
US -$17 M
Other YTD17
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
+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&G347 ex-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
24
143
111
95
114
100
129
20162015 20172014(1)20132012
(1) Paid in December2013
(US
$ M
illio
n)
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 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 LTM 17
US$ 3,103 Million
Revenues LTM 17
US$ 152 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
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 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, BrazilEPS
Santiago, ChileOther
Puerto Montt, ChileOther
General Lagos, ArgentinaEPS
32
Concon, ChileEPS
Source: Alpek
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 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
lyeste
rP
lasti
cs
&
Ch
em
icals
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)
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
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
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
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.)
43
Alpek has effectively transformed its EPS business
44
The Americas’ installed EPS capacity 2017ETotal: 600 ktons
Flint Hills
Nexkemia42%
Others
8%
Nova18%
17%
15%
Alpek(Styropek)
32575
23065
165
20
2018Altamira Expansion
ConconPlant
2015Acquisition2014
Kta
Alpek: EPS capacityExpandable Polystyrene (EPS)
Alpek acquired a controlling interest in SelenisCanada 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 1 % 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)
47
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. Canada
• Brazil• Indonesia• South Korea• Pakistan• Taiwan
• China• India• Oman• Pakistan
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
1,5431,635
1,708
20122011 1Q’173Q’16 2Q’172Q’16 4Q’163Q’15 1Q’16 3Q’174Q’152014 2Q’151Q’152013
Px USA Contract Price
(US
$ / To
n)
Paraxylene (Px) Price
49
Propylene and Styrene Prices
50
North America Propylene Contract Price North America Styrene Spot Price
47
40393939
46
5248
42
3638
33313133
42
50
70717073
4Q M3Q2Q1Q ME JF JA2Q 4Q1Q 3Q A S4Q2Q1Q3Q
2014 2015 2016 2017
60
55
504846
50
63
74
59
49
4446
4239
48
59
44
59
717175
F JMAM1Q4Q E4Q3Q 2Q2Q1Q 4Q3Q 3Q2Q1Q SAJ
2014 2015 2016 2017
(c / lb
)
(c / lb
)
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
200214
222237
4Q
212
2Q
260
1Q
210
15
270
13 141211
394
276
230
3Q2Q
240
210
1Q
263
3Q
258
China
250
933
819
1,192
781
637647584
641704
985986
797
1,013
1,181
2,108
4Q 2Q1Q2012 3Q2Q3Q 1Q20142011 1Q2013 2Q 4Q 3Q
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
0
1
2 2
4
3
6
5
0
1
4
3
6
5
FebNovOct JanAug Sep DecJul Mar May Jun AgoJulAbr Sep
Daily Average Traded Shares & Value
2016
Daily Stock Price
(Peso
s)
30
20
40
15
35
25
NovJul May JulMarJanSep Ago Sep
2016
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%
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
55
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)
$90 M Loan 90 Corporate guarantees
Non-recurring charges associated to M&G
56
Income Statement Balance Sheet
US$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 interest
127 (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
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 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 America2016 Installed Capacity
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