Slides
Page 1
Rotoplas más y mejor agua 2Q26 Rotoplas más y mejor agua Corporate Presentation Grupo Rotoplas S.A.B. de C.V. Rotol
Page 2
Corporate Presentation Grupo Rotoplas Leading company in the water industry | With over 45 years of experience, we are the Mexican company driving the transformation of water across the Americas, from Mexico to Argentina. Experts in the complete water cycle | We master the entire ecosystem, offering a comprehensive portfolio.Innovation centered on well-being | Our evolution is driven by challenging the status quo. We were pioneers in replacing risky materials with safer and more efficient solutions. Powered by impact and sustainability | We see water as the engine of well-being. Our technology and purpose come together to create sustainable solutions that ensure the availability and care of every drop. A synonym for quality and trust | We are the industry standard and the brand that ensures safe water, turning innovation into peace of mind and well-being for millions of households. ProductsServices Asbestos tank Copper piping Single-use plastic bottles Triple-layer polyethylene tank with antibacterial protectionHigh-resistance PPR piping with heat-fusion technology On-site purification service with IoT solutions Who is Rotoplas? 2
Page 3
Corporate Presentation Grupo Rotoplas Our VisionOffer non-centralizedand sustainable water solutions, withrelevant benefits for our customers,within the Rotoplas Way Our PurposeWe exist to transform the quality of life of everyone by ensuring the best use of water.Our MissionFor people to have more and better water We are currently at a crucial point in addressing water-related problemsA40% gap between global water supply and demandis projected by2030 We could exhaust our fresh water supply by 2040 at the current rate of consumption At least 69% of the impact of climate change is manifested through the water cycle 3
Page 4
Corporate Presentation Grupo Rotoplas Investment considerations 1.The Water Industry2.Our Solutions3.Our Strategy4.Our Results 4
Page 5
Grupo Rotoplas 01The Water Industry5
Page 6
Grupo Rotoplas The climate crisis exposes critical inefficiencies, creating opportunities across the water industry •75%of our planet is coveredby water, but lessthan 1%is usable.•Water demandhas increasedby 40%over the last 40 years and is expectedto risean additional 25%by 2050, while supplyhas more than halvedsince 1970.•We could exhaustour freshwatersupplyby 2040at the current rate of consumption.•80%of global wastewateris dischargedinto the seawithoutadequate treatment.•Microplasticsare present in 83%of drinkingwater.•57%of global freshwater aquifersare overexploited.•One thirdof freshwaterin pipelines is lostdue to leaks.•The climateand watercrisesare interconnected: for every +1°C, there is a 20%reductionin renewable water. •At least 69% of the impactof climatechangeis manifestedthrough the watercycle. •Everydollarinvestedin water access and sanitation couldyield $7 in returns1.•Solvingthe global watercrisiswould costonly 1%of the annualGDPuntil 2030. •Approximately 78% of the capitalemployedin watersecuritycomes from the publicsector, but it is expectedto fallto 43%in the next decade, while privatecapitalwill increasefrom 3.8 to 12.6 trillion dollars2. What you need to know: 1.World Bank2.Global Water Intelligence 6
Page 7
Grupo Rotoplas 02Our Solutions7
Page 8
Corporate Presentation Grupo Rotoplas Rotoplas is born in Mexico1978 The first polyethylene water tank is launched 1978 International expansion begins with the plant in Guatemala 1996 Rotoplas starts operating in Argentina1997 Acquisition of Talsar in Argentina and Sytesa (RSA) in Mexico2016 Start of operations in the USA 2015 Rotoplas is listed on the BMV under the ticker AGUA* 2014 Launch of Tuboplus2003 Issuance of the first Sustainable Bond in LATAM & Entry into the Dow Jones Sustainability MILA Pacific Alliance 2017 Start of the Flow transformation program 2019 Launch of the Sustainable Growth Plan for 20252020 Update of the Sustainability Strategy2021 Start of technological update in plants In Mexico2022 2024 2025 Launching of B2B and B2C e-commerce platform in Mexico Launching of IoT solutions for products and services Rotoplas’ history is proof of our adaptability and ability to evolve from a manufacturing company into a solutions leader across the entire water cycle. A story inspired by water | 45+ years of execution, growth, and innovation 8
Page 9
Corporate Presentation Grupo Rotoplas Distribution & LogisticsManufacturing Presence The power of our operating platform | Efficient large-scale manufacturing and a unique logistics network that ensures full market coverage 14 countries 27 product lines 3 service lines +3,200 employees +190,000 points of service +32,000 points of sales18 plants 3 distribution centers +12,000 distributors +3,400 suppliers Our installed capacity and logistics footprint allow us to absorb demand peaks and scale production without compromising service. 9 Leading Brands
Page 10
Corporate Presentation Grupo Rotoplas 💧Severe contamination in urban areas. 💧Inadequate sanitation infrastructure. 💧Significant challenges for public health and the environment. 💧Overexploitation and poor management of aquifers (North and Central regions). 💧Severe deterioration in water quality due to contamination. 💧Direct impact on urban and rural communities. 💧Urgent need to balance usage and strengthen quality controls. 💧Uneven distribution vs. scarcity between the Coast and the Andes. 💧Heavy contamination from mining activities. 💧Geographically uneven management: abundance in the Amazon vs. inefficient wastewater management elsewhere. 💧Compromised water quality in the most populated areas. 💧Critical water scarcity in the western region. 💧Severe water contamination issues. 💧Aging, unsustainable infrastructure (70–100 years old) causing inefficiency and losses. 💧Deep inequality in water distribution. 💧Water scarcity in arid zones. 💧Contamination from industrial and agricultural sources. 💧Multiple regions facing droughts and poor water quality. 💧Dual challenges: water scarcity and excess (flooding). 💧Pollution from inadequate waste management. 💧Direct impact on human health and biodiversity. 💧Water management capacity overwhelmed. Water Crisis | The opportunity for companies with the ability to develop decentralized solutions 10
Page 11
Corporate Presentation Grupo Rotoplas •Water Treatment Plants Building a solid pipeline •Storage•Waterflow•Improvement•Purification•Water Treatment Plants•Irrigation #1Storage#1Waterflow#1Improvement •Storage•Waterflow•Improvement #1Storage#2Improvement •e-Commerce•Septic Solutions #1Online storage sales •Storage•Waterflow•Improvement #1Storage#1Waterflow#1Improvement •Storage•Waterflow•Improvement#1Storage We set the industry standard | Regional leadership built on the continent’s most extensive operating footprint Our leadership allows us to leverage future growth in services and technologies through an established distribution network. 11
Page 12
Corporate Presentation Grupo Rotoplas From the water tank, our flagship product, to an ecosystem of solutions that exponentially expands our market potentialProducts | Solutions for adapting to climate change Services | Climate change mitigation solutions Storage Purification Waterflow Water Treatment Improvement Irrigation Solutions that address intermittent water supply. This is our foundational and market-leading category, serving as the main access point for millions of customers. Pipe and hydraulic connection systems for residential, commercial, and industrial buildings. We tackle inefficiency, leaks, and the renewal of obsolete infrastructure. Equipment that enhances the water experience. This category transforms our value proposition from “supply” to “comfort,” increasing value for the customer. Water purification systems under a subscription model. They restore trust in water quality, eliminate single-use plastics, and generate recurring income. Large-scale water treatment and recycling solutions (plants) for industrial and municipal clients (B2B/B2G). We address scarcity and sanitation through water reuse. Smart irrigation systems (AgTech) for the agricultural sector, a high water-consumption market. Focused on improving efficiency and climate adaptation in agriculture. 💧Investment phase: Negative cash flow 💧Negative EBITDA 6M26 ($116) 💧Strong earnings growth potential 💧Leading brands 💧Strong market share 💧Strong cash flow 💧Steady EBITDA – 6M26 $857 💧Cash contribution for the payment of capital reimbursementsSales 1212
Page 13
Presentación Corporativa Grupo Rotoplas Our Strategy0313
Page 14
Grupo Rotoplas Sustainable growth of the traditional businessGrowth and development of new businessesDigitalization of the water ecosystemCommitment to look after all stakeholders•Strong momentum in strategic product lines: the new vertical tank (opening the multi-family and urban apartment market) & the smart pump (enables integrated in-home water solutions).•Boosting adoption through expanded training for the sales force and plumbers, a reinforced plumber loyalty program, and active product demos on social media.•Mexico grows with agile pricing & margin protection. •Fifth consecutive quarter of positive EBITDA in the U.S. & Argentina growing in local currency while narrowing losses. Strategic Priorities | Building capabilities to sustain leadership in the next growth wave •bebbiasurpassed 193,000 active subscribers, with record additions and stronger unit economics.•Platform migration completed, positioning bebbiato accelerate growth.•Services' path to breakeven remains a priority. •Technology embedded across the water cycle: smart level sensors, smart pump and IoT-enabled products.•AI-enabled tools deployed to enhance customer experience and commercial execution.•Continued investment in data infrastructure and specialized talent in analytics, automation, AI and e-commerce. •CDP Supplier Engagement Leader for the second consecutive year.•2nd year publicly reporting SDG contributions through the SDID.•Capital reimbursement of $82 million pesos.•Leverage reduced to 2.3x, from 3.2x a year ago.•Refinanced the sustainable bond with a 7-year Bancomextfacility.•Peru: 9th consecutive sustainable-management distinction and first-time entry into the national carbon footprint program. 14
Page 15
Grupo Rotoplas 02.Increasing free cash flow through optimized working capital and controlled Capex•Reduce inventories in Argentina and Mexico•Optimizing accounts receivables by leveraging technology in our processes•Capex Cherry-Picking Strategy:oPrioritize maintenance Capex to sustain the performance of productso"Pay-as-you-grow" strategy for services businesses 01.Reversing the EBITDA trend through cost and expense reductions •Decrease in digital expenses•SG&A: Internal restructuring•General expense reductions across all business units Financial Priorities | Building capabilities to sustain leadership in the next growth wave 15
Page 16
Corporate Presentation Grupo Rotoplas Jerónimo Marcos Gerard Rivero Mario Romero OrozcoGonzalo Uribe LebrijaPablo Iturbe FernándezLeo Rastogi Carlos Rojas Mota Velasco Carlos Rojas Aboumrad John G. Silvia Francisco Amaury OlsenAlberto Esteban ArizuRegina García-CuellarMarcos WestphalenWilliam A. Russo Board of Directors CFOMexico & CA VPLatam VP USA VP CIO CPO & Transformation Sustainability VP Strategic pillars and focus 💧Maintain a solid financial position and a healthy growth profile 💧Develop and scale new businesses (services) 💧Drive sustainable growth of the traditional business (products)Key capabilities 💧Water Management 💧Digital Transformation 💧Sustainability and ESG 💧Strategic Vision 💧Innovation and Entrepreneurship 💧Financial Strength 💧Risk Management 💧Industrial Expertise 💧Business Development 💧Operational Knowledge Related MemberIndependent Member Strategic Governance | Ensuring the key capabilities for execution Board of DirectorsAudit CommitteeCompensations Committee Digital CommitteeCorporate Practices & Strategy Committee CEO 50% Independent21% Excecutive43% International7% Female representation Sustainability Committee Work Groups 16
Page 17
Corporate Presentation Grupo Rotoplas 2005 2010 20152018 2017 2016 20202021 2022 2019 2024 Bono SustentableAGUA 17-2X 2025 Where We Come From | Sustainability in Our DNAOur trajectory demonstrates a deep and evolving commitment, validated by the most rigorous sustainability frameworks.Main stakeholdersEmployeesCustomersDistributorsSuppliersInvestorsPlumbers and techniciansCommunities 17
Page 18
Corporate Presentation Grupo Rotoplas llyship in SustainabilityWe position ourselves as a strategic partner driving the transition toward a sustainable future, working hand in hand with communities, governments, investors, business partners, and end-users. plifting Well-beingWe promote the well-being of our employees, the communities we serve, and the people within our stakeholder ecosystem, through unity and teamwork, ensuring fair working conditions, equal opportunities, and a discrimination-free environment. eneration of ValueWe pursue the creation of economic, environmental, and social value for all our stakeholders and throughout our value chain. ction for the environmentWe promote initiatives to mitigate and adapt to climate change, responsibly manage water and waste in our operations, increase the circularity of our materials and products, and protect biodiversity in the communities where we operate. Main stakeholdersEmployeesCustomersDistributorsSuppliersInvestorsPlumbers and techniciansCommunities AGUA is built on four interconnected pillars 45AGUA | The strategy that embodies who we are 18
Page 19
Corporate Presentation Grupo Rotoplas AGUA Strategy -Public Targets update 2030 targetQ2 UpdateLast updateReduce 42% scopes 1 and 2 emissions, and 25% scope 3 emissionsS1 + S2: 23,282 tCO2eS3: N.A.May Reduce freshwater extraction 15% across all manufacturing sites per produced ton0.85 m3/tMay Recycle 70% of non hazardous waste generated in manufacturing sites70%May Engage with 80% of our critical suppliers in sustainability0% - 30% of the company’s CapEx allocated to sustainable projects (cumulative)65%JuneReach 40% of women in management positions 34.6%JunePurify the equivalent of 150 million water jugs by 2030 (cumulative)12.7 MJuneTreat 35 million cubic meters of wastewater by 2030 (cumulative)N.A.- Benefit over 1.5 million people with access to sanitation by 2030 (cumulative)110 KJune 19 Key Achievements 2021 – 2025Environmental•Measurement of the corporate carbon footprint•Monitoring of key environmental indicators•Emission reduction targets approved by SBTi•Climate-related risks and opportunities assessment•Product environmental footprints + Environmental Product Declarations (EPDs) for Tinaco Plus+ 1,100L and Tuboplus•Biodiversity analysisSocial•Group-wide Human Rights assessment•Gap analysis on workplace equality and non-discrimination•Onboarding, training, and development programs•Diversity, equity, and inclusion initiatives•Volunteer programs in Mexico, Peru, and ArgentinaGovernance•Internal and external communication plans and campaigns•Evaluation and engagement of critical suppliers•Sustainability distinctions: ESR, EGS, EHR•Participation in disclosure questionnaires•Improved CSA rating•Updated materiality assessment
Page 20
Corporate Presentation Grupo Rotoplas20 Social How do we execute the Strategy? | Sustainable Governance Structure
Page 21
Grupo Rotoplas 04OurResults21
Page 22
Corporate Presentation Grupo Rotoplas Strength across geographies: disciplined execution lifts group EBITDA offsetting Brazil's one-time effect Million MXNSales COGS SG&A EBITDA 22
Page 23
Corporate Presentation Grupo Rotoplas CAPEX Cash Net Debt Leverage Cash generation and working capital discipline cut leverage to 2.3x, from 2.7x at 2025 year-endMillion MXN 23
Page 24
Corporate Presentation Grupo Rotoplas 6M26 ResultsMXN mm Sales EBITDABy CountryBy SolutionSales EBITDAProductsServices 24 $741$5,705 $741$5,705
Page 25
Corporate Presentation Grupo Rotoplas June 2026 Cash and Cash Equivalents 1,247- Other Asssets 12,247- Total Assets 13,493- Financial Debt 4,399- Other Liabilities 3,6620 Total Liabilities 8,061- Equity 5,432- Liabilities + Equity 13,493 Interest coverageNet debt / EBITDA Balance SheetDebt Maturity Profile* 2026 ResultsMXN mm 25 $4,000 $431 Short TermLong Term * Does not consider provisions
Page 26
Corporate Presentation Grupo Rotoplas ROIC vs. WACC ROIC: NOPAT LTM/ Invested Capital LTM, monthly averageInvested Capital: Total Assets –Cash and Cash Equivalents –Short-Term Liabilities.ROIC excludes Flow program execution costs from 2Q20 to 4Q21 as they are one-off. 26
Page 27
Corporate Presentation Corporate Presentation •We are strengthening our traditionalbusiness with innovationand efficiency•Our growing services platform is unlocking new opportunities across the water cycle•Digital transformationis enhancinghow we operateand connectwith customers•Prior investments are expectedto startdelivering visible results, leading to improvedcashflowand enhancedROIC•Sustainabilitycontinues to guideeverydecision, creating meaningful impactfor all stakeholders•AGUA* upside potentialBTG PactualNeutral$15.30GBMOutperform $39.00Signum / PuntoBuy$18.64Consensus$24.31 Analyst Coverage Key Takeaways 27
Page 28
Thank you!INVESTOR RELATIONSMariana Fernandez mfernandez@rotoplas.com Institutional e-mailagua@rotoplas.comhttps://rotoplas.com/inversionistas Maria Fernanda Escobar mfescobar@rotoplas.com