Grupo Rotoplas S.A.B. (AGUA) investor relations material

Strategic transformation and business evolution

• Operations shifted from legacy, resource-intensive processes to advanced, digital, and IoT-enabled systems, resulting in over 90% water savings and 70% faster production cycles in core products.

• Service portfolio expanded, with Bebbia growing to over 159,000 subscribers and Riego covering 55,000 hectares, while predictive maintenance and AI-driven customer service became standard.

• Digitalization accelerated, with 86% of administrative staff regularly using AI, e-commerce and direct digital channels established, and a consolidated digital ecosystem.

• Regional strategies unified under 'One Rotoplas,' increasing execution speed, operational integration, and improved decision-making while maintaining local autonomy.

• Corporate strategy centers on profitable growth, water innovation, tech enablement, and sustainable impact.

Financial performance and guidance

• Services grew at a 56% CAGR, raising their share of total sales from 7% to 10%, while cost reductions and working capital optimization improved free cash flow.

• CapEx allocation shifted, with 70% now directed to services, and digitalization investments largely completed by 2025, with less than 10% of CapEx expected for digital in 2026.

• Sales peaked in 2022 at 12,774 million, then declined to 11,201 million in 2024 LTM, with EBITDA margin dropping from 18.2% in 2020 to 9.2% in LTM 2025.

• Financial priorities include reversing EBITDA decline, cost reductions, operational efficiency, strict CapEx discipline, and a pay-as-you-grow model for services.

• Debt strategy centers on refinancing the AGUA Sustainable Bond before its 2027 maturity and maintaining disciplined use of short-term credit lines.

Sustainability and ESG integration

• Sustainability is embedded in decision-making, with shared executive responsibility and alignment to global frameworks like SASB, TCFD, SBTi, and CDP.

• Environmental achievements include a 25% reduction in water intensity, 11% drop in CO2 intensity, and renewable energy use rising from 2% to 28%.

• The evolved AGUA strategy focuses on environmental action, value generation, well-being, and sustainability partnerships.

• 2030 targets include 42% reduction in Scope 1 and 2 GHG emissions, 25% less freshwater extraction per ton, 70% waste recycling, 40% women in management, and sanitation access for 1.5 million people.

• Recognition includes top ESG ratings, inclusion in major sustainability indices, SBTi validation, and awards for innovation and environmental leadership.