Our Drive

Financial Highlights

3

* The 22 plants of the Company operate as distribution centres.

Key Figures
Figures in millions of Mexican pesos

Financial Performance	2014	2015	Variation
Net Sales	6,552	5,700	(13.0%)
Cost	4,037	3,397	(15.9%)
Gross Profit	2,514	2,303	(8.4%)
Gross Profit Margin	38.4%	40.4%	200 pb
Expenses	1,816	1,641	(9.6%)
Operating Income	698	662	(5.2%)
Operating Income Margin	10.7%	11.6%	90 pb
EBITDA	860	771	(10.3%)
EBITDA Margin	13.1%	13.5%	40 pb
Net Income	417	402	(3.5%)
Net Income Margin	6.4%	7.1%	70 pb
Earnings per Share	0.86	0.83	(3.4%)
Number of outstanding shares ⁽¹⁾	486	486

(1) Figure in million shares

40.4%

Gross Profit Margin

11.6%

Operating Income Margin

7.1%

Net Income Margin

Our Company

We are pioneers in the development and distribution of water and sanitation solutions in the Americas, with more than 35 years serving the market throughout our individual and integrated solutions for storage, flow, and improvement of water.

We are mindful of the urgent need to solve water supply and sanitation problems, and we therefore seek to offer innovative, high-quality products that achieve our goal, that people have more and better water

Our team of 2,272 experts in the industry, work every day to offer individual and integrated solutions to our diversified client base such as governmental and non-governmental entities, various industries, agricultural businesses, hardware stores, and home-improvement retailers, as well as building supply stores.

Value Chain

Throughout our value chain we seek to generate the best benefit for those we serve. Our solutions allow water use to be optimized in various ways and for different users, always making the best use of this resource, so that not only human consumption is favored, but also a positive environmental impact is generated.

Global Context of Water

Water is an essential resource to preserve human life in all senses. Today, having enough of this resource to meet consumer demand is ever more complex due to growing urbanization, the lack of infrastructure, and the consequences of climate change.

Currently we are around 7 billion inhabitants in the world, of whom 748 million do not have access to drinking water, and 2.5 billion do not have basic sanitation (WHO and UNICEF, 2014). It is estimated that by 2050 there will be 9.6 billion people on earth.

Furthermore, more and more people are migrating from rural to urban areas seeking a better quality of life, which places stress on the current water infrastructure and sanitation.

On the other hand, accelerated economic and technological progress has brought with it an increase in greenhouse gases emissions, causing an alteration in precipitation systems, as well as other ever-increasing and more aggressive natural phenomena, all as a consequence of climate change.

At Rotoplas we have the capacity to maximize our knowledge to adequately manage water use through developing decentralized solutions, that are also sustainable.

Our leadership, commitment, and experience in the market enable us to carry out actions that drive efficiency in order to preserve a sustainable environment with benefits for the community.

Source: WWAP | Alice Franek, Engin Koncagul, Richard Connor, and Diwata Hunziker. The United Nations Word Water Development Report 2015. WATER FOR A SUSTAINABLE WORLD. http://www.unesco.org/new/fileadmin/MULTIMEDIA/HQ/SC/images/WWDR2015Facts_Figures_SPA_web.pdf

Mission

For people to have more and better water.

Vision

To be a global company that is a point of reference for individual and integrated water solutions whose success is founded on the Rotoplas Way.

1

Values

Service:

We identify our clients’ internal and external needs and focus our efforts on meeting and exceeding the level of service they expect.

2

Values

Collaboration:

We demonstrate a committed and participative attitude that allows us to align our efforts and work with joint responsibility to achieve a common goal.

3

Values

Social and Environmental Responsibility:

We are committed to generating actions that promote wellness, quality of life, and care for the environment in all the communities where we have a presence.

4

Values

Humility:

We show an attitude that allows other points of view to be taken on board, valuing the contributions of others and promoting constructive feedback.

5

Values

Passion for the Business:

We have the conviction, enthusiasm, and commitment to give our very best and make things happen.

6

Values

Integrity:

We act with honesty, fairness, and ethics congruent with what we think, say, and do.

Stakeholders

For Rotoplas Group, two-way interaction with the people and organizations we work with is vital to responsibly manage our business. We must know and understand the opinions of those impacted by our operations, and we have therefore identified seven main groups who have a distinct type of relationship with our Company. This allows us to understand their needs and expectations, and stay informed about our operational performance and areas of opportunity.

Customers

Distributors
Government bodies
End user

Employees

Part time- developing professionals and interns
Full time- workers, including unionized

Suppliers

Suppliers of raw materials and services

Board of
Directors and
its internal
bodies*

Board of Directors
Audit Committee
Corporate Practices Committee
Compensation Committee

Financial Community

Investors
Banking institutions – debt
Standard & Poor’s – assessment body

Authorities
and Regulatory
Bodies

Mexican Stock Exchange (BMV) and National Banking and Securities Commission (CNBV)
Financial authorities of each country
Ministry of Labor and Social Welfare