Orbia (ORBIA) Business Update Presentation summary

Strategic priorities and financial outlook

• Focus on improving earnings power, strengthening the balance sheet, and pursuing long-term growth opportunities amid weak market conditions.

• Adjusted EBITDA for 2024 expected at $1.15B–$1.20B, with a target of ~$1.5B by 2027 through cost savings and growth initiatives.

• Cost savings initiatives aim to deliver $250M/year by 2027, with $85M in 2024 and incremental $165M by 2027.

• Capital expenditures to be reduced to $450M or less for 2025 and 2026, prioritizing safety, asset integrity, and selective growth.

• Divestment of non-core assets targeted to generate $150M–$200M by 2026.

Market conditions and business challenges

• Market headwinds include lower PVC prices, excess capacity in China, high interest rates, and delayed infrastructure investments.

• Net farm income has dropped 23% over two years, impacting Precision Agriculture.

• F-gas quota reductions and telecom infrastructure funding delays are affecting volumes in Fluor & Energy Materials and Connectivity Solutions.

Growth investments and future opportunities

• Completed growth projects expected to add $150M+/year in EBITDA from 2025–2027, including specialty PVC, digital farming, and network solutions.

• Investments in PVDF and LiPF6 for fluorinated battery materials to contribute to earnings by 2028/early 2029, supporting the North American supply chain.

• Market recovery could deliver $250M–$500M+ per year in incremental earnings through improved utilization and pricing.