EARNINGS WEBCAST Todays Speakers Jos de Jess Valdez Jos Carlos - PowerPoint PPT Presentation

SECOND QUARTER 2020 EARNINGS WEBCAST

Today’s Speakers José de Jesús Valdez José Carlos Pons Alejandro Elizondo CEO CFO IRO 2

Topics for Today’s Webcast I. COVID-19 Update II. Financial Performance III. Long-term Growth Strategy 3

COVID-19 Update • Lower crude oil demand in Asia results in Feedstock = historically low prices for Crude Oil and Px Prices • Resulting in negative Inventory loss & RMCF effects in 2Q20, with potential to revert in 3Q20 Polyester • Solid demand and lower Asian PTA/PET output + Margins improved margins (+13% QoQ) • Alpek’s businesses deemed as essential / No Operations adverse effect to operations = • Increased safety measures for employees at plants and home-office whenever possible • Strong PET volume, particularly due to emphasis Demand on hygiene and safety + • EPS volume from Construction segment impacted in Mexico, though rebounded in June 4

2Q20 Financial Highlights Strong Alpek performance QoQ best explained through Comparable EBITDA excluding RMCF result (US$149M / +1% QoQ) Polyester margins increased by 13% QoQ and Volume on record-setting pace (+4% YTD) but lower vs. 1Q20 record high (-6% QoQ) Temporary negative Inventory Adjustment (-US$42M) and Raw Material Carry- forward (-US$39M) effects in 2Q20 as feedstock prices fell to historical lows Focus on FCF as Net Debt reduced (-31% YoY) and CAPEX lowered (-61% YoY) US$81.6M dividend suspended, but open for review by Board of Directors in 2H20 Liquidity strength continues as cash balance improved (+7% QoQ) and US$1.4B in total credit lines were maintained 5

EBITDA Evolution Alpek EBITDA (US$M) 356 CoGen Sale • Comparable EBITDA excluding RMCF 1 of US$149M (+1% QoQ) 188 231 • Quarter on quarter improvement 217 as stronger Polyester margins (+13%) more than offset lower 213 +1.4% 173 167 volume (-6% QoQ) 189 149 147 Comp. EBITDA 172 excl. RMCF 1 • Comparable EBITDA and 148 Reported EBITDA lower QoQ due 127 Comp. EBITDA to larger Inventory Losses & 194 110 167 161 RMCF effects 140 111 Reported 74 EBITDA 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 6 (1) Raw Material Carry-forward

Feedstock Costs Crude Oil, Px and Propylene all reached record lows in April/May 2020 Brent Crude Oil Price NA Paraxylene Contract Price NA Propylene Contract Price US$/Bbl US$/Ton cpp 2,000 40 80 38 38 37 -16% 35 35 31 1,500 30 60 26 25 1,165 -33% 1,077 955 41 937 40 1,000 20 876 15 590 500 10 20 17 5 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 1Q 2Q 3Q 4Q 1Q 2Q 2019 2020 2019 2020 2020 2019 7

EBITDA Breakdown Alpek 2Q20 EBITDA (US$M) 217 Others • Polyester Comp. EBITDA excl. RMCF of US$102M (+9% QOQ) P&C 62 +1% • Negative RMCF & Inventory 149 147 Adjustment effects from Px and Propylene price decline 39 46 50 110 • P&C Comp. EBITDA of US$46M (-7% QoQ) 46 42 74 Polyester 151 6 • Strong PP margins, but volume 40 decrease from EPS (-19% QoQ) 102 94 63 • One-time US$6M gain from 33 insurance payout related to 3Q18 fire at Altamira PTA facility 2Q19 1Q20 2Q20 RMCF 1 2Q20 Inventory Others 2Q20 Comparable Comparable Comparable Comparable Adjustment Reported EBITDA EBITDA EBITDA EBITDA EBITDA excl. RMCF excl. RMCF excl. RMCF 8 (1) Raw Material Carry-forward

Free Cash Flow Generation US$M 1,428 53 163 • Alpek with emphasis on financial 1,330 185 stability and strong liquidity 42 • FCF year-to-date of US$118M 101 127 (+US$189M vs. Guidance) 51 • NWC +US$127M year-to-date (+US$203M vs. Guidance) • CAPEX of US$42M (-61% YoY & -US92M vs. Guidance) • US$81.6M Dividend suspended FCF: US$118M but open for review by Board of Directors Net Debt EBITDA NWC Financial Taxes CAPEX Dividends Others Net Debt Dec’19 Jun’20 Expenses 9 9

Long-term Growth Strategy Growth Catalysts • Global Cost Improvement Strengthen • Value-added Products Core • FCF Generation Business • Footprint Optimization • rPET Leadership Foster • Recycling Promotion Circular Economy • Sustainable Product Portfolio • Value Chain Integration Strategic & • Product Innovation Focused Growth • Maximize CCP Value 10

2H20 OUTLOOK 11

Q&A José de Jesús Valdez José Carlos Pons CEO CFO 12

APPENDIX

Disclaimer “forward -looking This presentation contains, or may be deemed to contain, 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. 14

Raw Material Carry-forward Effect (RMCF) Breakdown Smaller YoY & QoQ difference in EBITDA when excluding extraordinary effects 2020 2019 Delta M dls 1Q 2Q YTD 1Q 2Q YTD 1Q 2Q YTD Reported EBITDA 111 74 185 140 161 301 (29) (87) (116) Inventory Adjustment (17) (42) (59) (19) (27) (46) 2 (15) (13) Others 0 6 6 11 (1) 10 (11) 7 (4) Comparable EBITDA 127 110 238 148 189 337 (20) (79) (99) Raw Material Carry-forward (20) (39) (59) (19) (28) (47) (1) (11) (12) Comparable EBITDA excl. RMCF 147 149 296 167 217 384 (20) (68) (88) 15

Relevant References: Crude Oil Historical lows in April before rebound after OPEC production cuts US$/Bbl Brent Crude Oil Price 120 Avg. 100 99 80 71 60 64 54 53 44 40 20 0 2014 2015 2016 2017 2019 2020 2018 16

Relevant References: Paraxylene Px prices continued to fall in 2Q20 following their correlation with Crude Oil US$/Ton NA Px Contract Price 2,000 1,708 1,635 1,641 1,500 1,382 1,258 1,282 US$143/ton 1,165 decrease 977 1,056 1,100 1,077 from Mar.’20 992 989 955 to Jun.’20 937 924 924 1,000 876 876 590 500 0 2011 2012 2013 2014 2015 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2017 2018 2019 2020 17

Integrated PET Margins Margins improved by 13% based on resilient demand and lower Asian production Asian Margins (Px / MEG to PET) US$/Ton 600 China 500 478 393 400 377 370 342 333 324 310 304 284 346 300 277 193 276 275 263 255 248 240 214 242 227 227 223 215 238 164 214 200 227 PET 202 204 196 208 184 186 174 145 180 165 159 100 200 155 140 133 135 117 110 104 80 81 82 78 83 PTA 74 69 69 72 62 64 60 0 2011 2012 2013 2014 2015 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2017 2018 2019 2020 18

Relevant References: Propylene & Polypropylene Decrease in PGP contract prices, but Alpek PP margins remain strong NA Propylene Contract Price (PGP) NA Polypropylene Margin (PP to PGP) cpp cpp 80 28 27 76 26 71 69 24 70 24 22 22 22 60 22 21 20 60 54 20 19 18 50 16 45 15 16 15 39 13 38 38 40 37 14 35 12 34 12 12 31 30 26 10 8 20 6 4 10 2 0 0 11 12 13 14 15 16 17 18 1Q 2Q 3Q 4Q 1Q 2Q 11 12 13 14 15 16 17 18 1Q 2Q 3Q 4Q 1Q 2Q 2019 2020 2019 2020 19

Continuously improving financial performance Net Debt decreased by 1% as Leverage remains at strong levels Net Debt (US$M) LTM EBITDA (US$M) Net Debt/EBITDA (Times) 2,084 944 2.4 2,036 2.2 864 850 821 1.9 -1% 735 1.7 1,436 1,428 1.6 1,330 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 20

Alpek Growth Strategy Details / Description Growth Catalysts • • Global Cost Improvement Zero Based Budgeting & process innovation (Mainly Operations, Logistics & SG&A) Strengthen • • Value-added Products Shift to products with higher margins & barriers to entry (Copolymers, Grey EPS) Core • • FCF Generation Reductions to CAPEX & NWC / Recovery of M&G Mexico debt Business • • Footprint Optimization Ensure global production is performed in optimal sites & logistic networks • • rPET Leadership Lead rPET supply in Americas through capital-effective investment Foster • Secure PET Bale & Flake supply / Equip vPET plants with single-pellet technology Circular • • Recycling Promotion Active lobbying for circular economy via associations & The Recycling Partnership Economy • • Sustainable Product Portfolio Develop sustainable alternatives for all our products (Biodegradable EPS & PP, etc.) • • Value Chain Integration Grow capacity selectively & integrate into value chain (EPS, Px) Strategic & Focused • • Product Innovation New products & business lines (Biovento, Natural Gas Commercialization, CO 2 , PLA) Growth • • Maximize CCP Value Optimize project timing & minimize CAPEX 21