Corporate Presentation
2Q17
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.
18.6
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
Polyester (71% of Sales) Plastics & Chemicals (29% of Sales)
Alpek is a leading petrochemical company focused
on Polyester chain products, mainly PTA and PET
Source: Alpek estimates
(1) June 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.
Revenues1 US$ 5.0 Billion
EBITDA1 US$ 530 Million
Polypropylene Expandable Polystyrene
Capro-lactamPTA / PET
Polyester Fibers
Fertilizers & Specialty
Chemicals
Products
and Uses
Subsidiaries Grupo Petrotemex2 Indelpro3 Styropek Unimor
Polioles4
6
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
Sample End Users by Industry
Beverage Food
Personal Care Textiles
Volume by Industry 2016(3,938 Kta)
Consumer
Goods
32%
Textiles
7%Construction
3%
Sales Geography 2016
Europe
3%
Mexico
37%
USA
44%
Asia and Others
1%LatAm
14%
Food and
Beverages
58%
Canada
1%
8
Alpek is the largest integrated polyester producer
in North America (PTA-PET)
Source: PCI
2016 Capacities, 2016 M&As
PTA(5,560 kta)
NanYa
M&G
Indorama
42%
PET(4,443 kta)
North America
2016 Installed Capacity
9
Eastman
BP
Indorama
41%
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
Corpus Christi
(2017)
PTA: 420 k tons
PET: 500 k tons
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. PTA/PET Site (Corpus Christi) 400+ 100 2017
5. EPS Expansion Altamira 30 10 2017
6. Altamira Cogeneration 350 90 2018
Total ~ $1 B ~$260
US $899 M invested up to Jun-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 /
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 640 ktons
TBD 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
2017 average Brent price estimated at $55/bbl
Brent Crude Oil
14
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
2017 Guidance
4,1063,9383,9373,931
2017G
+4%
20152014 2016
Sales Volume Revenues
EBITDA CAPEX
Source: Alpek estimates
502
669630
434
-25%
2016 2017G2014 2015
238
345317320
-31%
2014 2016 2017G2015
(Kto
ns
)
(US
$ M
illio
n)
(US
$ M
illio
n)
(US
$ M
illio
n)
5,0694,8385,284
6,471
20152014 2016
+5%
2017G
% Sales 6.7% 9.9%11.9% 13.8%
15
Lower 2017 EBITDA guidance mainly due to
normalization of PP margins after 1Q16 peak
16
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 (2Q and YTD17)
17
M dls 2Q17 2Q17G 2017 2017G
Polyester Comp. 45 72 114 139
PPA Selenis 12 8 12 8
P&Ch Comp. 54 49 116 100
Total 112 129 243 246
Val. Inv. (29) - (3) -
Reported 82 - 240 -
12
5
5
5 45
72
2Q17Fibers +
Others
US $27
2Q17G Plant
outages
Feedstock
cost
carryover
IPA
Alpek EBITDA vs Guidance Alpek Polyester EBITDA vs Guidance
M dls
Index
• Business Overview
• Consolidated Financials
• Appendix
Sales Volume and Revenues
+1%
77%78%
3,992
20162015
23%
3,937
23%
LTM 17
3,9383,931
24%22%
77%
2014
76%
Sales Volume Revenues
+4%
4,838
29%
5,0175,284
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
392
532
481
286
20162014 LTM 172015
-26%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
53
133
116111
20152014 LTM 17
-60%
2016
189198
175
65
20162014 LTM 172015
-4%
(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% 3.8%1.0%% Sales
530
669630
434
20152014 LTM 172016
-21%
13.8%11.9%6.7%
20
7.8% 10.6%
Balance Sheet Accounts
610
694632
685
2016
-12%
20152014 Jun 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
2,0881,955
1,8201,861
2016
+7%
20152014 Jun 17
1,0581,042
722715
2015
+2%
20162014 Jun 17
2,0792,0192,0052,028
20162015
+3%
2014 Jun 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
8.0
10.510.7
6.5
LTM 17201620152014
2.0
1.6
1.1
1.6
2016 LTM 1720152014
326345
317320
LTM 1720152014 2016
(Tim
es
)
(Tim
es
)
(US
$ M
illio
n)
133
170160
110
2016 LTM 1720152014
EBITDA / Ton
(US
$ / T
on
)
22
Alpek Consolidated Debt Profile
June 2017
● Gross Debt: U.S. $1.246 billion
● Net Debt: U.S. $1,058 million
● 99% of our debt is denominated in US dollars(1)
● Available Committed Credit Lines: U.S. $321 million
(1) A small portion of debt is denominated in ARS
300
650
212747
192188
19Cash 1817 2220 21 23
23
Index
• Business Overview
• Consolidated Financials
• Appendix
Operating & Financial Highlights (2Q17)
Alpek
• 2Q17 Consolidated EBITDA of U.S. $82 million, including a U.S. $29 million
non-cash inventory loss and a U.S. $12 million one-time gain from the Selenis
Canada acquisition (2016)
• The decline in oil and feedstock prices also had an estimated impact of U.S.
$10 million on 2Q17 Comparable Consolidated EBITDA
• Net Debt down U.S. $118 million versus 1Q17 driven by positive Net Working
Capital cash flow
Polyester
• 2Q17 Polyester EBITDA of U.S. $33 million, including a U.S. $25 million non-
cash inventory loss and a U.S. $12 million one-time gain from the Selenis
Canada acquisition (2016)
• Resilient demand; 2Q17 Polyester volume up 9% and 6% versus 2Q16 and
1Q17 respectively
• Initial deposit of U.S. $39 million in escrow to acquire PetroquimicaSuape and
Citepe; Brazilian authority (CADE) started transaction evaluation process
Plastics &
Chemicals
(P&C)
• 2Q17 P&C EBITDA of U.S. $49 million, including an U.S. $5 million non-cash
inventory loss
• Better-than-expected polypropylene volume and margins despite high
feedstock price volatility
• 2Q17 caprolactam reference margins decreased to expected level after 1Q17
spike
25
Latest Quarter Results
Source: Alpek
(1) Times: Last 12 months.
Alpek: Selected Financial Information
26
(%) 2Q17 vs.
2Q17 1Q17 2Q16 1Q17 2Q16 YTD17 YTD16 Ch.%
Total Volume (ktons) 1,038 986 981 5 6 2,024 1,970 3
Polyester 807 759 743 6 9 1,566 1,497 5
Plastics & Chemicals 231 227 239 2 (3) 458 472 (3)
Consolidated Revenues 1,306 1,293 1,237 1 6 2,598 2,419 7
Polyester 930 916 871 2 7 1,846 1,708 8
Plastics & Chemicals 375 376 366 - 2 752 711 6
Consolidated EBITDA 82 158 208 (48) (61) 240 380 (37)
Polyester 33 87 110 (62) (70) 120 184 (35)
Plastics & Chemicals 49 70 98 (30) (50) 119 197 (39)
Profit Attributable to Controlling Interest 25 87 48 (72) (49) 112 120 (7)
CAPEX and Acquisitions 65 76 110 (14) (40) 142 142 -
Net Debt 1,058 1,175 910 (10) 16
Net Debt/LTM EBITDA(1) 2.0 1.8 1.3
Interest Coverage(1) 8.0 10.0 11.1
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)
967980981988 9709981,038986
3Q 4Q2Q1Q
143156
208
171
133
157
82
158
4Q2Q1Q 3Q
1,2191,346
1,2371,182 1,1831,2361,3061,293
4Q1Q 3Q2Q
29
38
48
72
28
50
25
87
2Q 3Q1Q 4Q
1.8% -8.2%
0.6% 29.6%
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%
272015 2016 2017
Latest Quarter Results
Source: Alpek
Alpek: Net Income
Alpek: Cash Flow
28
(%) 2Q17 vs.
2Q17 1Q17 2Q16 1Q17 2Q16 YTD17 YTD16 Ch.%
EBITDA 82 158 208 (48) (61) 240 380 (37)
Net Working Capital & Others 156 (64) (22) 342 797 91 (136) 167
Capital Expenditures & Acq. (65) (76) (110) 14 40 (142) (142) -
Financial Expenses (17) (16) (18) (4) 8 (33) (23) (42)
Income tax (33) (27) (45) (23) 26 (60) (119) 50
Dividends (9) (88) (69) 90 87 (97) (205) 53
Payment affiliated companies 1 - 52 100 (99) 1 64 (99)
Other Sources / Uses 3 (20) (3) 113 200 (17) (7) (133)
Decrease (Increase) in Net Debt 118 (134) (7) 188 1,836 (16) (189) 92
(%) 2Q17 vs.
2Q17 1Q17 2Q16 1Q17 2Q16 YTD17 YTD16 Ch.%
Consolidated Net Income 38 106 70 (64) (46) 144 175 (18)
Non-Controlling Interest 13 19 22 (31) (41) 32 55 (41)
Controlling Interest 25 87 48 (72) (49) 112 120 (7)
Earnings per Share (U.S. Dollars) 0.01 0.04 0.02 (72) (49) 0.05 0.06 (7)
Avg. Outstanding Shares (Millions)* 2,117 2,117 2,117 2,117 2,117
Comparable EBITDA
29
Reported EBITDA 2014 2015 2016 2017G 2Q16 2Q17 2016 2017
Polyester 270 344 349 304 110 33 184 120
Plastics & Chemicals 159 284 322 198 98 49 197 119
TOTAL 434 630 669 502 208 82 380 240
Comparable EBITDA 2014 2015 2016 2017G 2Q16 2Q17 2016 2017
Polyester 341 378 331 304 96 45 180 114
Plastics & Chemicals 159 273 308 198 94 54 189 116
TOTAL 505 654 637 502 190 99 368 230
Adjustments* 2014 2015 2016 2017G 2Q16 2Q17 2016 2017
Polyester 71 35 (18) - (15) 12 (4) (7)
Plastics & Chemicals - (11) (14) - (4) 5 (8) (3)
TOTAL 71 24 (32) - (19) 17 (11) (10)
*Adjustments: Inventory and non-operating, one-time (gains) losses
New Guidance 2017
2017 Ch.% (vs. 2016)
Volume (Ktons) 4,106 4
Net Sales (Million) U.S. $5,069 5
EBITDA (Million)1 U.S. $502 (25)
Capex (Million) U.S. $238 (31)
2017 New Consolidated Guidance
(1) Does not include any impact from inventory valuation.30
Polyester Chain
PTA, PET, and Polyester Fibers
Employees: 3,629
Products (Capacity):
• PTA (2,250 Kta)
• PET (2,014 Kta)
• rPET (89 Kta)
• PSF (150 Kta)
• Filament and polymer (160 Kta)
Raw Materials:
• Paraxylene (Px)
• Monoethyleneglycol (MEG)
• Acetic Acid
End Markets:
• Food and beverage
• Textile
• Consumer Goods
EBITDA LTM 17
US$ 3,583 Million
Revenues LTM 17
US$ 286 Million
General Information
Source: Alpek 31
Pearl River, MI
PET
Cedar Creek, NC
PET, R-PET
Columbia, SC
PTA & PET
Cooper River,
SC
PET & PSFMonterrey, 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$ 1,435 Million
Revenues LTM 17
US$ 245 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(5,560 Kta)
2004 (3,800 Kta)
2016(4,443 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$15 less per ton in capital cost
• 11 less steps for the production of PTA and PET
• Lower wastewater by-product and greenhouse gas emissionsSource: Alpek
PTA / PET: Process Diagram
41
Power cogeneration overview
Contract-based
power
customers
Ga
s
turb
ine
Heat Recovery
Cogeneration plant
Ste
am
turb
ineNatural Gas
Electricity
Steam
Steam
12
3
1. Gas turbine generates electricity
2. Combustion gases produce steam
3. Steam is used to generate additional electricity and for Alpek’s chemical reactions
Hot
gases
42
Alpek signed an IntegRex® PTA license and PTA-
PET sourcing agreement with M&G
• Integrated PTA - PET site in Corpus Christi, TX
• Capacity: 1.2 M tons PTA and 1.1 M tons PET
• Wholly owned and operated by the M&G Group
• ~U.S.$ 1B estimated investment (green field)
• Largest IntegRex® PTA facility in the world
• Expected to begin operations in 2017
License fee ($)
U.S.$ 350M
400 Ktons per year
of integrated PET
PTA-PET
Sourcing
Agreement
IntegRex®
PTA License
Agreement
Corpus Christi Site
43
The sourcing agreement provides Alpek with
unique access to M&G’s Corpus Christi site
(1) Additional supply rights acquired in 4Q15
336 Ktons+84 Ktons1
PTA1.2 M tons
M&G864 Ktons
400 Ktons+100 Ktons1
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.)
44
Alpek acquires Polioles’ and BASF’s EPS business
activities in North and South America
Polioles’ EPS business activities
EPS site in Altamira, Mexico
Polyurethane (PU) business activities
Selected assets in Lerma, Mexico
EPS sales & distribution in NA/SA
EPS site in Guaratingueta, Brazil
EPS site in General Lagos, Argentina
Aislapol, S.A. (Chile)
Industrial & Specialty Chemicals
Alpek/BASF JV
45
Styropek is the leading EPS player in the Americas
Sites
Sales office
Warehouses
• Largest EPS capacity in the Americas (~250 ktons)
• Only EPS producer covering North and South America
Styropek: Locations
46
Alpek has effectively transformed its EPS business
47
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)
Alpek acquired a 20 Kta EPS plant in Concon, Chile
from BASF
48
Alpek: EPS production facilities Concon Plant
• Capacity: 20 Kta (EPS)
• Location: Concon, Chile (BASF site)
• Closing: March 31, 2016Altamira. México
Guaratingueta, Brasil
Santiago, Chile
Puerto Montt, Chile
General Lagos, Argentina,
Concón, Chile
Styropek Plants (230 Kta)
Concon Plant (20 Kta)
Alpek acquired a controlling interest in Selenis
Canada Inc.
49
• 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. PET antidumping case
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
50
• Rates applicable for a minimum period of five years.
• Trade orders could be renewed in five-year increments
995926
871920
838882
948
1,168
9701,014
1,543
1,6351,708
898
2Q’171Q’15 2Q’162Q’15 3Q’161Q’164Q’15 1Q’174Q’163Q’15201420122011 2013
Px USA Contract Price
(US
$ / To
n)
Paraxylene (Px) Price
51
Propylene and Styrene Prices
52
North America Propylene Contract Price North America Styrene Spot Price
3939
46
52
48
42
3638
33313133
42
50
70717073
J1Q4Q3Q AFE3Q M2Q M4Q1Q 4Q3Q 1Q2Q 2Q
2014 2015 2016 2017
4846
50
63
74
59
49
4446
4239
48
59
44
59
7171
75
E4Q M M3Q AF3Q2Q 4Q1Q 2Q4Q 1Q 2Q3Q1Q J
2014 2015 2016 2017
(c / lb
)
(c / lb
)
67 6799
67 62 61 69 67 70 70 7256
84
201
2Q
222214
394
220
20122011
232
2014
219
3Q
198200
2Q2013
200213212
1Q
196
1Q 2Q
195
4Q3Q
195
1Q4Q
Margin: China PET to Px/MEG
(US
$ / To
n)
PET Margin (Asia)
2015 2016
53
2017
PTA
PET
819
1,192
781
637647584
641704
985986
797
1,013
1,181
2,108
2012 2Q4Q2Q 1Q3Q4Q 1Q2Q 3Q20142013 1Q2011
Margin: CPL Spot to Contract Benzene
(US
$ / To
n)
Caprolactam Margin (US)
54
2015 2016 2017
Alpek stock highlights (BMV: ALPEK)
Valuation 4Q14 4Q15 4Q16 2Q17 2017G
Market Cap. (U.S.$ B) 2,475 3,113 2,193 2,419 1,969
Net Debt (U.S.$ M) 715 722 1,042 1,058 1,069
EBITDA LTM (U.S.$ M) 434 630 669 530 502
Enterprise Value / EBITDA 8.0 6.5 5.2 7.0 6.5
Price / Earnings 23.8 13.3 8.0 10.0 N/A
Price per Share (MXN) 17.78 25.98 21.1 20.00 20.00
Exchange Rate (MXN/USD) 15.21 17.67 20.35 17.50 21.50
2
4
1
3
4
0
6
0
1
5
3
2
5
6
JanNovJulMay Feb MarDecOctSepAugJunMar Apr
Daily Average Traded Shares & Value
2016
Daily Stock Price
(Pe
so
s)
34
26
28
22
36
20
24
32
30
18
MarNovSep JanJulMayMar May Jul
2016
Performance ALPEK IPC DJI
June 2017 -4.3% 2.2% 1.6%
YTD (Jun-17) -12.1% 9.2% 8.0%
LTM (Jun-17) -27.5% 8.5% 19.1%
Shares
Value
(M Shares) (U.S. $ M)
55
20172017