Orbia (ORBIA) Investor Presentation summary

Strategic focus and business overview

• Emphasizes material science and innovation to address global challenges and deliver sustainable solutions.

• Operates five business groups: Polymer Solutions, Building & Infrastructure, Precision Agriculture, Connectivity Solutions, and Fluor & Energy Materials.

• Maintains a diversified global footprint with operations in over 50 countries and commercial presence in more than 100.

• Holds leading positions in PVC, water management, precision irrigation, fluorspar, and data network solutions.

• Focuses on expanding access to health, well-being, urban resilience, food and water security, and energy transition.

Financial performance and market conditions

• 2023 revenue reached $8.2B with an EBITDA margin of 17.8% and operating cash flow of $931M.

• 2024 EBITDA impacted by weak market conditions, including excess PVC capacity, high interest rates, and lower farm income.

• Market headwinds also include delays in infrastructure funding and regulatory changes affecting volumes.

• Cost savings initiatives target $250M/year by 2027, with $85M expected in 2024.

• Growth investments are expected to deliver over $150M/year in incremental EBITDA from 2025 to 2027.

Capital allocation and debt management

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

• Plans to generate $350-400M in cash through 2026, prioritizing debt reduction.

• Aims to reduce net debt by more than $350M by 2026, targeting a net debt/EBITDA ratio below 2.5x.

• Maintains ample liquidity with $1.4B in available credit and no significant near-term debt maturities.

• Average long-term debt maturity is 9.32 years with a 4.8% average cost.