LETTER FROM THE CEO

In 2017, Rotoplas consolidated its position as a leading company in the development and sale of water solutions focused on innovation and sustainability. Throughout this year, we completed the integration of our most recent acquisitions and capitalized on new opportunities to further our research and development department and increase our market share in the US. Likewise, we obtained several international awards to our performance in sustainability.

This year, we launched 12 new solutions developed in our R&D center in Leon, Guanajuato, and acquired Canadian innovation center Sanzfield, which specializes in the development of wastewater treatment and recycling systems. It is also worth noting the strategic acquisition of the leading e-commerce platform for water storage solutions in the US, which will enable us to strengthen our presence in that important market and leverage the synergies obtained throughout our other operations. Moreover, we successfully completed the integration of Sytesa in Mexico, and Talsar in Argentina.

Thanks to all this, total revenues amounted to $6.66 billion Mexican pesos and EBITDA to $1.004 billion Mexican pesos, which translates into 24.4% and 36.1% increases, respectively. EBITDA margin settled at 15.1%, 130 basis points higher than in 2016, while our net profit grew 18.7%.

I would also like to note that, as a result of our efforts and commitment to our Sustainability Model, we issued the first Sustainable Bond in Latin America, worth $2 billion Mexican pesos. This issuance, which adheres to international standards, will enable us to finance and refinance projects with environmental and social benefits, as well as to contribute to the achievement of various Sustainable Development Goals. Our performance in sustainability was recognized through our entry into the Dow Jones Sustainability MILA Pacific Alliance index and the Greenbrand award, which acknowledges us as one of the most prestigious brands in the market.

On the other hand, we should also mention the response of our company and collaborators to the tragedy of the earthquakes that hit Mexico in 2017. To show our solidarity with the victims, we launched the Water for Affected Areas Program, which benefited over 600 thousand victims through water purifying plants, outdoor toilets with biodigester at shelters, and water storage tanks.

Lastly, I would like to reiterate Grupo Rotoplas’ commitment with its mission, sustainability, and the 10 principles of the United Nation’s World Compact regarding human rights, employment and environmental issues, and anticorruption.

I wish to thank our board members and collaborators who, through their effort and commitment, make it possible for us to meet our goals and serve our clients, suppliers, shareholders, and users who, by giving us their trust, enable us to realize our mission for people to have more and better water.