Orbia Advance Corporation, S.A.B. de C.V. (ORBIA) Earnings Call Transcript & Summary

So, good morning, everyone, and welcome to Orbia's 2022 Investor Day. I am Gerardo Lozoya Investor Relations Director. Thank you for joining us today. We appreciate your interest in Orbia. Today, we're very excited to be here presenting Who is Orbia and what's our strategy. We're committed to have best-in-class disclosure and transparency as we go through this journey. I would like to take a minute to address an important topic, which is security. So in case we have an emergency, you will find 2 doors behind you with an exit signal. If needed, we will need to go out of the room following the signal behind you. And if needed, the right, there are stairs behind you that will give you -- or that will allow us to take us to the straight level. We're going to receive further instructions from the safety team from the hotel. So now I would like to draw your attention to our safe harbor statements in our presentation on Page #2, and take a moment to review this slide. For those of you on our webcast, please send your questions through the webcast platform. We will be collecting your questions throughout the presentations. And I and Josh will be reading your questions to management team during the Q&A session in the order in which we receive those questions. As a reminder, at the end of the presentation, we will host the lunch in the St. George C&D Room. Now I'd like now to introduce Josh Preneta, our Head of Corporate Strategy, who will walk through the agenda of the day.

Thank you, Gerardo. Good morning, everyone. Thank you. So as Gerardo said, my name is Josh Preneta. I'm Head of Corporate Strategy. I've been at the company for about 3 years. I have worked with Sameer for quite a bit longer than that background in strategy and a variety of different industries. So the agenda for today, which I'll pull up is really focused on answering a few questions. So just for context, the last time we had an Investor Day at Orbia was back in 2012. So it's been almost 10 years since we've done an event like this. So we thought it would be appropriate to really focus on 3 questions. Who is Orbia, -- what is our strategy? And what will the results of that strategy be? So this is kind of how we built the agenda for today. We're super excited to share it with you. We're going to start with Juan Pablo, who I think many of you know, who's going to really talk about Orbia's history and how we got to where we are today. Sameer will then come on stage and talk to you about, Who we are? what ties these businesses together? What drives our growth? What is our strategy? Tania will come on stage, talk a little bit about sustainability, which we see as absolutely core to who we are. And then each of our business group presidents will walk through who is the business group, what is the strategy of the business group? And what are the results that, that strategy is going to drive. Shai will come on stage. Shai is Head of Innovation for Orbia and talk about how we think about innovation. And then finally, Jim, who's going to come on stage as CFO and really talk about in a bit more detail what's the financial impact of this strategy. So super excited. You're not going to see me on stage after this, but looking forward to catching up with all of you over lunch. And I guess with no further ado, Juan Pablo?

Is the mic working? Yes. It's great to be here with all of you today. As Josh said, it has been 10 years since our last Mexican day. I'm sure that you will see after this presentation that we have a larger company that is more sustainable, that is more professional and that is more global. My name is Juan Pablo del Valle, and I have been the Chairman of the Board of Orbia since 2011. And I have been lucky to participate in the last 20 years in Orbia's monumental transformation that started many of you will remember with CAMMESA that turned into Mexican and today is Orbia. I'm here to tell you 2 important things. The first is what's my priority as Chairman? And the second is to tell you about Orbia's resiliency and opportunities for the future. If I tell you about my priority, it's really a shared priority with the Board and with the leadership team. And that is to be good stewards of capital, your capital. If we want to be good stewards of capital, I think we have to have the right owners mentality. And the right owners mentality has to understand that Orbia is a business and businesses require maximizing capital and we do that by continuously growing, by having healthy margins, healthy cash flows, strong balance sheets and stable dividends, which is what we've done in the past years. But without forgetting that in order to do that, we have to create value for our clients, for our community and for the planet. So let me tell you now a little bit about why Orbia is so resilient. And why Orbia has so great opportunities for the future. I cannot continue with this. It's not going into the next chapter -- to the next slide. Josh, if I give it to you, can you help me. I wanted to start by telling you, and many of you remember that 20 years ago, CAMMESA or Mexichem, mainly sold rocks. We had a fluorspar mine and a salt mine. And we sold that -- we sold that those rocks and that salt as chlorine and caustic soda. But we defined a very clear strategy. Our central idea was vertical integration. And from that vertical integration today, we're integrated from mine to market, and we're integrated from lab to everyday life materials and from ground to home. You will see what that means when Sameer and the team explain a little bit further how we transformed this rock fluorspar into derivatives that go directly into the market and that will actually be key for the energy transition. Can I control it now? So this is the fluorspar that we have in San Luis Potosi so that you picture the kind of rocks that we sell. Can we go to the next? This is a salt that I was referring to. But don't worry with the presentation, I will continue. I was telling you that our central idea had been to grow with a vertical integration strategy and that we evolved from mine to market, from ground to home and from lab to everyday life. And just remember that framework because when you see all of the business leaders presenting, that will serve you well in terms of understanding how we do it. But the end result is, as I told you, we are today a larger company. We grew from $200 million in 2001 to almost $9 billion now. In terms of EBITDA, we have grown around 60x. We have maintained a very strong balance sheet, 2x, around 2x. Very healthy margins, more than 20%. A strong balance sheet and stable dividends. And we have been able to do that because our markets are diversified. We participate in 40 countries, and the markets that we participate in are relevant. We are in water, food, datacom, health, et cetera. And we've been able to stay resilient and grow and have all these characteristics that I tell you about even after we had a terrible global financial crisis in 2008. Recently, the pandemic, inflationary pressures, stagflation risk. And many other obstacles, also internal like the JV that we have from Pemex. No matter what, we have going through these obstacles, growing, having good margins, strong balance sheet, et cetera. But we understand that we cannot sleep on our laurels. As we say in Spanish, [Foreign Language] Use news, you lose. And our team is incredibly dynamic in looking at all the opportunities that we have available and focusing on the relevant ones, the ones where we have an edge, the ones where we can make a difference. Sameer and the team will tell you all these details, and I am pretty sure that by the end of this session, you will be as excited as me about the future of the company. In summary, please, when you think about Orbia, think about the stewards of capital with an owner's mindset with a purpose to advance life around the world, and with clear opportunities to grow in the future. Thank you. I want to also thank all of our employees, many of them who are connected our clients and our stakeholders. Sameer, the floor is yours.

Thank you, Juan Pablo for the great introduction. And Juan Pablo is quite humble in his remarks. He and he's one of the key team members that has been the Chief Architect of Orbia's strategy over the last 20 years and clearly has a significant contribution to taking this company from $200 million to almost $9 billion today. I want to start by giving everybody a very warm welcome. Many thanks for attending the Investor Day presentation in person. And thank you for all those online who are going to be with us for the next few hours. Today, my -- and our team's primary objective is to help you understand who Orbia is? And where are we headed in the future? Let me start with a brief introduction to myself. I'm an engineer. My background is a PhD in chemical engineering. And I've worked in industries related to Orbia for over the last 2 decades. And these include experiences at the Dow Chemical Company, The Boston Consulting Group and Cabot Corporation. My involvement with Orbia started over 10 years ago as a board member for the fluor business, and I joined the company roughly 6 years ago. The key messages I would like to leave you with are the following: Orbia is a company that harnesses the power of material science and innovation to serve customer needs, addressing key world challenges at the same time and providing sustainability solutions. The second message I want to leave you with is that we are going to be investing in profitable growth, leveraging our uniquely advantaged positions and bringing differentiated solutions to market. And we will do that by maximizing the value of vertical integration in the value chains we participate in. As Juan Pablo highlighted, the most important thing is being good stewards of capital, and we will demonstrate that by being disciplined operators. And finally, as you will hear from Jim, we aspire to deliver double-digit earnings growth and steady and growing returns to shareholders through dividends. Let me start with defining who Orbia is today. 3 years ago, we went through the transformation from Mexichem to Orbia and we chose the name Orbia after much deliberation. The name Orbia comes from Orb, which is Latin for a sphere or a globe and Bia, which is great for the personification of force. We want Orbia to be a force for the world. We also spent over a year with a group of 400 team members distilling Orbia's purpose and we landed upon the purpose of advancing life around the world. And this for us is a beacon with which we look at everything we do. The choices we make, the investments we make and where we are headed in the future. We also codified our values and landed upon bravery, responsibility and diversity as our key values. So to summarize, driven by purpose and unified by values. We choose to work on the toughest challenges. From mine to market, ground to home, field to table and lab to everyday life, we rely on our collective ingenuity and the integration across our value chain to transform materials into greener, smarter and more efficient solutions. This is Orbia. Orbia today is a truly global company with 35% of our sales in Europe, 33% in North America, 22% in Latin America and 10% in the rest of the world with operations in over a 100 countries and manufacturing assets in over 50. This is a truly global company. Safety of our people and communities is our #1 priority. And we do this in 3 ways: by continually transforming our culture and ingraining safety into the DNA of our team members through operational discipline, in our chemical operations, our mining operations and our downstream extrusion operations and then providing the teams with the tools and technology to come to work safely and go home safely. And you can see this in the results. Over the last several years, we have continuously improved our safety performance with a total recordable incident rate of 0.6 in the last year, and we aspire to achieve world standards of 0.2, 0.3 over the next few years. People are our most valuable asset. Today, I'm proud to say we are a truly global team of 23,000 employees that's highly diverse, highly talented, fully empowered and works with an owner's mindset and the fulfillment development and well-being of our employees with a long-term mindset is one of our top priorities. I want to now switch gears and talk about our businesses. Orbia today has leading positions in the businesses it operates in. We're the sixth largest producer of PVC in the world. We're the world's largest producer of specialty PVC. In our Building & Infrastructure business, Wavin we are #1 in Europe, #1 in Latin America. Our Precision Agriculture business, Netafim is the #1 Precision Agriculture Business in the world. Dura-Line our telecommunications conduit business is #1 in North America and #3 in Europe. And finally, our Fluorinated Solutions business, Koura is the world's largest producer of fluorspar. These are enviable positions that provide us an incredible platform to grow from. Orbia is a customer-focused company. Now what's fascinating about the set of businesses we have is that not only are we customer focused, we are also addressing key world challenges at the same time. And the 5 world challenges I'll talk about today, and you'll hear from in the business group presentations include: sanitation and water management, health and well-being, food and water security, information access and connectivity and finally, climate resilience and decarbonization. And you can see that many of our businesses cut across each of these challenges. Now there's no better way for me to communicate to you who Orbia is today, then by talking about the value we create in our customers' applications and the world challenges we address at the same time. And I'll talk about 5 of these. The first one is providing access to clean water and sanitation. 1 in 4 people around the world today do not have access to clean drinking water. Millions of children around the world today still die in developing countries because they do not have access to clean water. 1 in 2 people around the world today do not have access to safely manage sanitation. So as the world population grows, providing access to clean water and sanitation will continue to remain an important priority for the world. Orbia provides PVC for use in pipes and fittings, providing clean water and sanitation to people around the world. Why PVC? PVC is safe, it's durable, and it's cost effective. It's immensely recyclable with a lower carbon footprint than alternatives and it gives you UV resistance without the addition of Carbon Black. So there are no real alternatives to PVC for delivering clean water and sanitation to the world. In addition, as you will hear from Maarten during his presentation, Orbia is a leader in providing city-scale water management solutions. The second example I want to talk about is enhancing urban climate resilience. Cities around the world are stressed today with massive population growth, lack of infrastructure, aging infrastructure, flooding, droughts, pollution and sinking land. And the world's population is expected to grow -- the urban population is expected to grow from 4 billion to 6 billion by 2045. Now in that context, Orbia provides resilient urban infrastructure solutions to its customers. And these include storm water management, indoor climate solutions for building energy efficiency and various mechanisms for recovering and recycling rainwater, and Maarten will talk about these in his presentation as well. The third example in terms of how Orbia creates value for customers, is helping the world grow more with less. By 2050, the world population is going to exceed 10 billion. What does this mean? It means we will need a 60% increase in agricultural output. So feeding the world is going to be a significant challenge. Orbia delivers Precision Agriculture Solutions through its Netafim business, in particular, drip irrigation. Now of course, many of you understand that drip irrigation allows you to use less water, improve yields. But the best way to hear about how value is created is by going and talking to customers. So a couple of weeks ago, I was in India, and I went to visit a farm. And I sat down with the farmer in the field, and I asked him, why are you using drip irrigation? And what he explained to me was fascinating. He said, "Look, I have intermittent power. I get electricity a few times a day. I don't have enough people to work in the fields. And this area is water-stressed. So for me, it's not just about saving water, it's about saving energy, saving labor and getting increased crop yields. That was incredible to hear. And we have similar such stories that Gaby can share with you during his presentation from around the world. The fourth example I want to talk to you about is enabling connectivity. There's an exponential need for connectivity around the world, and Peter will discuss this in his presentation, driven by the need to bring more people online, enable people to work remotely and provide cloud solutions and data storage. Dura-Line provides conduit solutions that allow network providers to lay these conduits and dig trenches only once, and so that they can deploy fiber in the future in a much more sustainable manner. Peter will also talk to you about some of the other solutions that we are providing for network infrastructure and connectivity. Finally, the last example I want to talk to you about is enabling the world's transition to sustainable energy. Now all of you are aware about the significant growth expected and the transportation of -- the electrification of the transportation fleet with lithium-ion batteries as well as with the growth in wind and solar, the need for grid level energy storage which could also be served by lithium-ion batteries. The demand for battery -- lithium-ion storage capacity is expected to go up by 10x or 20x over the next decade. More than 30 million cars are expected to be electric by 2030. Now everybody talks about shortages of lithium, nickel, cobalt, and are concerned about those supply chains. What most people don't appreciate is that fluorine is a key component of lithium-ion batteries, almost 10% by mass. And if you do the math correctly, you'll find that by the end of the decade, more than half the world's fluorine should end up in lithium-ion batteries. Now in that context, Orbia through its Koura business provides 3 key things. I have here with me a couple of samples of fluorspar. Juan Pablo shared these pictures with you, and you can come and touch and feel these rocks during the break. Orbia has the world's largest fluorspar reserve and is the largest producer of fluorspar. And so we will provide security of supply to the lithium-ion battery chain over the next decade. Second, with increasing supply chain and logistics challenges around the world, as many of these giga factories are being built in Europe and North America, all of the battery plants are requiring local supply chains. And Orbia is in a position to provide local supply chains to its customers in both Europe and North America. And finally, Orbia is going to provide high-value fluorinated materials for lithium-ion battery applications, which include electrolyte salts, electrolyte additives, cathode materials and recycled components from lithium-ion batteries. I'm pleased to announce that last Thursday, on May 12, Gregg, who's here in the audience today will share more in his presentation. We signed our first joint venture with Foosung Technologies of Korea to produce lithium hexafluorophosphate in Poland. This is a landmark milestone, one of many. And the next frontier will be North America. Very excited about this. Hopefully, these 5 examples give you a better sense for who Orbia is today. Orbia is a truly global company with a fantastic team, really talented people, extremely well positioned to grow in some very important market segments over the next decade. I want to now talk to you about our strategy for value creation. And the first point to note is we will be investing in growth. And we will do so because we have uniquely advantaged positions that we can leverage for highly profitable growth. And we have differentiated technologies that we can bring to the world. Second, I will talk you through the value of vertical integration. In a world of supply chain disruptions and deglobalization security of supply of key materials is key. And Orbia has a unique position in the chains that participates in. And finally, I'll share with you how we'll create shareholder value by being good stewards of capital and disciplined operators. First, we are looking at significant growth opportunities across each of our businesses. And you'll hear about these in each of the business group presentations. But I can tell you that at an Orbia level, we are aspiring to grow our earnings, our EBITDA by 11% to 14% over the next 5 or 6 years. The key thing to note here, and this is the only thing you take away from this slide is that much of this growth is going to come from growth in our core markets. 70% to 80% of our growth is going to come from organic growth in our core markets and the remaining 20% to 30% will come from adjacent products, adjacent services, geographic expansion and maybe a bolt-on acquisition here and there. Let me talk about the drivers for the growth in each of these market segments. Over here, you can see the takeaway message from this slide is we aspire to grow above market rates in each of the businesses that we operate in. In Polymer Solutions, this is driven by basic need for clean water and sanitation. Likewise, in building and infrastructure with the urbanization of the planet and needs for urban infrastructure solutions, we'll see significant growth in our Wavin business. In Precision Agriculture, it's increasing the penetration in high-value crops and through innovation, going into extensive crops. In data communications, as you see increasing deployment of fiber infrastructure rurally, increase in cloud infrastructure, data storage infrastructure, we will see significant growth in that business. And then finally, in Fluorinated Solutions, it's the solutions we are bringing for next-generation refrigerants and medical propellents with far lower global warming potential and the new materials I talked about in energy storage. Combined, this will allow us to grow our revenues by 8% to 11% over the next several years relative to a market growth rate of 5% to 6%. I want to spend a little bit of time on vertical integration. And this is -- as Juan Pablo talked about this, this has been key to our strategy, and this has allowed us to be immensely successful over the past couple of decades and will hold us in good stead in the future. We start with 2 simple materials, ethane and salt. Now both of these are highly advantaged on the U.S. Gulf Coast. Ethane comes from shale gas and salt comes from salt caverns in Texas and Louisiana. Now we take the ethane molecule and you take 2 hydrogens off, that's what you do in a cracker and you get ethylene. And this is what we do in our cracker in Ingleside, in Corpus Christi. Next, you take the salt, you make a solution, apply electricity to it and split the salt molecule, you take off the chlorine. You combine the chlorine with the ethylene you get PVC. So very important to understand that to be successful in PVC there's very few companies in the world that can thread the needle on this complex value chain where you're doing both caustic soda chlorine you're starting with ethane going to ethylene, combining it to make PVC. And the most advantaged location for that in the world is the U.S. Gulf Coast. And with our presence in North America on the U.S. Gulf Coast, we have one of the most advantaged cost positions in the world. We then go further downstream, produce general resins, general PVC, specialty resins, which then gets further integrated downstream into specialty compounds. Gautam will talk about our AlphaGary business, building and infrastructure, our Wavin business, Precision Agriculture, our Netafim business. And then, of course, we meet the needs of external customers around the world as well. Very powerful integration here. And this last year was the best example of when we really reaped significant benefits from this integration, and you can see that in the results. The second integration I want to talk about is the mine-to-market integration in our fluorine chain. This rock that I talked about is going to be key to the world's transition to sustainable energy. But that's not all. There are other critical applications of fluorine. And we've been producing metallurgical grade fluorspar for the last -- over the last 2 decades. And this goes into steel and cement applications. You cannot produce high grades of steel without fluorspar. Fluorspar also lowers the carbon footprint of steel and cement. We then take the fluorspar and produce 97.5% fluorspar, which is called acidspar, which is a starting point for all downstream fluorochemicals. The fluorspar -- the acidspar is converted to hydrofluoric acid. And Gregg will share with you the markets we participate in today include medical propellants, refrigerant gases, energy storage materials and aluminum fluoride. What I haven't talked about is that fluorine is also used in 5G telecom, fiber optic cables, the jacketing on a fiber optic cable is a fluoropolymer. Fluorine is extensively used for semiconductor manufacturing. And Gregg will share more about that with you, but all of these will drive significant demand for fluorine and our vertical integration positions us extremely well to win in that value chain. In addition, we are working hard to continually realize synergies across our business groups. Besides supply security and improved economics, we are working hard to increase the internal consumption of PVC, plasticizers and stabilizers, and Gautam will talk about those. We have a strong innovation mindset, and we are working seamlessly across business groups with materials innovation. For example, Nick is working with Maarten and Gaby on a fit-for-purpose PVC for irrigation applications. We have significant geographic synergies, and Peter and Maarten will talk about those. Wavin was able to enter India in an accelerated fashion by taking on 2 of Dura-Line's facilities. And Dura-Line was able to do the same in Europe. And finally, we have many other asset synergies that we are going after and sharing resources where it makes sense across the whole company. We have a highly disciplined approach to investments. As I've mentioned before, 70% to 80% of our growth is coming from investments in our core markets. We have a very rich pipeline of opportunities. These are highly actionable projects, which we have clear line of sight into. Expansions within our current assets brownfield expansions, addition of new lines. And much of this growth comes at less than 4x EBITDA, typically 2x to 4x EBITDA and at significant scale. We will look at inorganic growth opportunities on a case-by-case basis, specifically to address our technology gaps, any gaps in our geographic footprint or to facilitate entry into our market, but the bar will be very high. You need to have significant growth, significant synergies and strong financial discipline in terms of return on invested capital. Now I will share with you the scale of our aspiration shortly, but one cannot scale a company, a $9 billion company without having a robust operating system in place. And to that end, we've been slowly deploying an excellence operating system across the entire company across each of the businesses. And you'll hear each of the business leaders talk about the excellence operating system during their presentations, which provide a common set of tools and processes and standardization of how we run our business. And finally, digital transformation is going to be key to enable us to scale the company. I have Mike Bruggeman here sitting in the back, who leads our technology function. And we've assembled a really fantastic team that's addressing our foundational IT needs, enabling customer-centric digital in our e-commerce applications and then future-fit digital where we will leverage tools such as artificial intelligence, machine learning, whether it's for preventive maintenance, for supply and demand planning and other applications. So this is what we are aspiring to. Today, we are a roughly $9 billion company. And based on what we've shared -- what I've shared with you so far and as you'll hear from the business groups, we're looking at growing our revenues to $13 billion to $15 billion over the next 5 or 6 years. Our EBITDA will scale from around $1.8 billion, $1.9 billion to a range of $3.1 billion to $3.5 billion. Jim will talk a lot more about this in his presentation. And simultaneously, we will grow our margins from the 20%, 21% range to 23%, 24% by 2027. We understand we are living in an uncertain world. There are many risks out there. What I'd like you to walk away with is we understand these risks, and we have put the systems, processes and teams in place to manage these risks should any of these events occur. And these include cybersecurity, ethics and compliance, operational safety, regulatory risks as well as systemic risks. I want to spend a moment on resilience. Our balance sheet is incredibly strong. Today, our leverage is around 1.3. And our operating cash flow is in excess of 60%. We have ready access to additional debt as necessary. And then on the structural side, the value -- the vertical integration that I described positions us at the bottom left of the supply curve in the chains we participate in, which allows us to weather storms better than most people out there. I want to come back to what I started with. Orbia is a company that harnesses the power of material science and innovation to serve customer needs and is addressing key world challenges at the same time. We are gearing up to invest in profitable growth, and we'll leverage our uniquely advantaged positions, offer differentiated solutions and maximize the power of vertical integration. We'll create value for all stakeholders by being good stewards of capital and disciplined operators. And finally, we aspire to deliver double-digit earnings growth and steady returns to our shareholders through growing dividends. Thank you very much. With that, I'd like to invite Tania to come and talk to you about how we think about sustainability at Orbia.

Thank you very much, Sameer. Hello, everyone, and welcome once again to our Investor Day. It's really great to see so many familiar faces and also new faces. My name is Tania Rabasa Kovacs. I'm Corporate Vice President of Sustainability and Corporate Affairs. And I'm truly delighted to be with you today to share Orbia's exciting ESG story, which really is all about enabling a sustainable future for generations to come. But before I step into my slides, I'd like to tell you a little bit about myself for those of you that don't know me. I've stepped into my current role only in December of last year, but I've been with Orbia for over 3 years, heading areas of Corporate Development and Energy Insights. Before joining Orbia, I worked in large energy companies looking at energy transition and strategic agendas. Let's start. During my presentation today, I would focus on 3 key aspects of our ESG story to set the broad framework from what you'll hear later on today from each of our business group presidents. First, the very ambitious environmental goals we have committed to and how we have been progressing towards achieving them whilst at the same time, setting new bold targets around Scope 3 emissions to help our customers reduce their own environmental footprint. Second, the strategy we have to actually reach those goals and our aspirations to go beyond. And third, the strong governance structures and processes we have in place to enable our ESG ambitions and to create the impact at the scale and the speed that all our stakeholders demand. As a global purpose-led company, that Sameer already described, we recognize that the world needs to drastically reduce greenhouse gas emissions by 2050 to avoid further climate catastrophes. So at Orbia, we are committed to reaching carbon neutrality by 2050, and we have also laid down with transparency, our path to get there, rooted in climate sites. Starting in 2025, we've already set ourselves 3 environmental-related goals around waste, environmental management systems and SOx reductions. By 2030, we are first in Latin America, among petrochemical companies to actually set a Scope 3 greenhouse gas emissions reduction target. And this is really a landmark that sets us apart. And you will hear with much more detail, the very concrete actions we have to actually reach this target. Since this Scope 3 emissions are mostly related to our Fluorinated Solutions, Gregg Smith will go into more detail later on today. Also by 2020 -- by 2030, we are aiming at reducing our Scope 1 and Scope 2 emissions by 47%. And that should place us -- should allow us to reach by 2050 net zero. But we are progressing on our path is demonstrated by recent accomplishments from which I'd like to highlight 3 today. 2021, we already reduced our Scope 1 and 2 emissions by 10% and our Scope 3 emissions by 8% and our SOx emissions by 21%. And these achievements have been recognized by external parties as they have upgraded our ratings, the most recent one being EcoVadis, who upgraded Orbia to Gold, which means that we are now at the top 5% of our industry. I have already shared with you what our goals and targets are. So now let me tell you what the 3 strategic pillars are we are focusing on to reach those goals and even to go beyond. The first one we are focusing on is running low impact and resilient operations. This means seeking opportunities to minimize or eliminate any negative impacts while implementing projects to become climate resilient. Second, constantly, delivering sustainable solutions. This means developing products and services with an improved environmental performance and supporting the United Nation sustainable development goals. And third, seeding new business, which means accelerating new technologies and business models for a net positive world. This framework allows us not only to operate sustainably, but also to grow sustainably. I'll now go into a little bit more detail into each 1 of these 3 pillars. Starting with our own operations. At Orbia, we aspire to be a global leader in sustainable development based also on how we conduct our businesses, which is why we are continually seeking opportunities in all of our plants across all of our business groups to optimize our processes and make our manufacturing processes more efficient, to transition to renewable and lower carbon energy sources. And additionally, each business group President is looking at implementing circular models around water, waste and recycle content. Now let me move on to the second strategic pillar, Sustainable Solutions. The world is set to add 2 billion people, as Sameer already mentioned, and that means we're going to need more water, more energy and more food. And so we will need more efficient solutions to cover these basic needs. As a sustainable solution provider, at Orbia, we are constantly seeking to address some of the most pressing challenges the world is facing today. Such as expanding health and well-being, connecting communities, ensuring food and water security, contributing to climate resilience and decarbonization and improving access to sanitation. And Sameer also already gave very concrete examples of how our offerings contribute to each of these challenges. What he did not mention and I want to highlight here, is that our solutions also contribute to the United Nations Sustainable Development goals. And we have actually conducted an assessment to better understand and even quantify how our different offerings contribute to these goals. And this was just a various exercise we conducted together with KPMG, but we are looking at further understanding and quantifying how each of our offerings contribute to many of the United Nations' development goals. Let me move on to the third strategic pillar. I already described previously that we are not only focused on decarbonizing our current footprint and operations, but we're also developing new offerings, and we are also seeding new business for a net positive world. Because we believe decarbonization is our generation's greatest opportunity, but also our greatest responsibility. We are exploring these 5 different subcategories in the broad climate tech space: energy, mobility, both agriculture and land use, heavy industry and built environment. Through our corporate venture capital fund, we are making strategic investments and partnering to develop key technologies to unlock opportunities for deep decarbonization. I'll just highlight 2 examples here. Verdagy, which is a start-up that's developing technology for the production of green hydrogen and [indiscernible] element that's looking into the recyclability of Paris. I will not go into further detail now because later on, our Vice President of Innovation, Shai will do a deep dive. The best ESG practices start and end with corporate governance. So let me end my presentation today by describing our governance structure at the Board as well as at the enterprise level. And I do want to take the opportunity here to acknowledge the dedication and the commitment of all of our Board of Directors to our ESG journey. At the Board level, the Corporate Practices and Sustainability Committee aids the Board in setting the strategy and overseeing the ESG strategy. Myself as VP of Sustainability report at least quarterly to the committee. On the other hand, the Audit Committee assists the board in managing risks through a Critical Risk Committee led by our CEO and our CFO. And certainly, climate risks are included in this process. At the enterprise level, we have taken steps to better align management practices around ESG. Crucially, we have now an ESG modifier that ties our leaders' performance to specific ESG metrics such as greenhouse gas emission reductions. Let me conclude by highlighting 3 key takeaways. First, we have established ambitious commitments, made significant progress across ESG practices in the past few years and set new impactful targets. Second, we will deliver long-term value by focusing on climate action, both on our operations and also through our offerings and investment. And third, we will continually raise the bar to improve already strong governance structure and ensure we achieve our ambitions with transparency and accountability. Just a final slide. We won't have time today to really go into all the details and the data on our progress, our expanded portfolio of solutions and our investments in impactful ventures, which is why we wanted to share with you that on our website, you can find our latest 2021 annual sustainability report, our improved TCFD-aligned climate risk report and our companion ESG data book, which provides a data-driven view of our ESG performance. As you will see, these reports are really a reflection of the achievements of each and every one of my Orbia colleagues. So I do want to take this opportunity to thank them all for their daily efforts on our sustainability commitments. Thank you very much. With that, I'll turn the presentation to Nick.

Terrific. Thank you, Tania. Good morning, everyone. My name is Nick Ballas, and I look after the chlorvinyls portion of the Polymer Solutions business for Orbia. I've been in my role for almost 2 years now, and I've got more than 25 years of experience in the chemical industry much of that living and working in Asia. I'm sharing the presentation today with Gautam Nivarthy, who is the head of our compounds business, our downstream compounds business. Look, our teams are very driven by our purpose of advancing life around the world. And we're all quite motivated by the role that we play in helping address the key world problems that Sameer talked about. I'm very excited about where we are with the business today. We've got some great people working on really challenging problems. The business is doing great. We have very strong profitability today, and we've got some great growth opportunities in front of us. So again, when I finished my presentation today, I hope you're all as excited as I am about our business. Look, there are 4 key messages that we hope that you walk away with -- about the Polymer Solutions business. One, we have leading market positions in all the businesses that we operate. Two, our strength comes from our low-cost position and a geographic footprint that gives us access to really attractive markets. Number three, our specialty products portfolio is considered by our customers' best-in-class. And it gives us a stable source of earnings and really strong margins throughout the business cycle. And then the fourth and maybe the most important point is that the market conditions have really shifted for us. The demand capacity balance is tight, and we see a really favorable market environment. And we, as a business, are very well positioned to grow and expand. This is the Polymer Solutions business in a nutshell. We have leading positions in the businesses that we operate, as I said before. And these are our numbers. We serve customers in 80-plus countries. We've got 28 production sites, 11 R&D centers and 3,600 employees. And it's important to note here that the earnings power and the growth of the business is strong. We delivered $1.1 billion in EBITDA in 2021 and $3.5 billion in sales. So a very healthy 33% EBITDA margin. So that's the business in a nutshell or at a glance. Sameer talked about these megatrends before, but again, our business is addressing customer needs and important world challenges. The big megatrends are population growth for us, life expectancy and urbanization. The population is going to be 10 billion people on the planet, a 25% increase from today. Life expectancy, 77 years. That's from 73 today and 68% of the people in the world will be living in cities. That's compared to 56% today. And those trends are driving the need for clean water and sanitation, affordable housing and infrastructure, food security, city-scale water management and safe medical products. And our business helps provide solutions that address those problems. Sameer already talked about PVC. It's a very unique and difficult to replicate characteristics. In addition to that, we have a derivatives business that's primarily caustic soda and chlorine-based products that also offer essential products for critical end uses in the building and automotive industry, in water treatment and sanitation and also in the medical and pharmaceutical industries. The world needs our products to grow. It needs PVC and it needs our derivative products. These are the industries, the growth rates which are extremely healthy for the products that we -- for our applications -- for our products and our applications. A couple of key points here. These are all large important industries, again, with very healthy growth rates. And our products are absolutely critical in each one of these industries. I want to move now into the market situation and the big opportunity that we have in front of us. So PVC demand growth has been strong and stable for decades. Market growth just sort of ticks along with just a little bit above overall GDP growth, and growth is being driven by the trends, the megatrends that we just talked about. A couple of other quick points. Growth is expected to accelerate just after the COVID crisis ends. And the second key point is that there's no real existing material that provides the cost and performance balance that PVC does. So we don't really see product substitution as something that's going to cause a meaningful change in this overall demand picture. So that's the demand side of the equation, strong and stable growth. Let me move on to the supply side of the market. So this shows the history as well as the projected global capacity expansions and closures. And the key points here are really that -- over the last 10 years, there's really -- there's been underinvestment in the industry. And over the next 5, we see very limited expansions overall. So the important thing to understand is that PVC capacity additions will not keep pace with demand. Other key issues affecting supply are that we've seen reliability problems in the industry due to aging assets and a lack of investment. And there's a fair amount of capacity in China that's coal-based that is off-line today because of environmental concerns and issues. And that's limiting global supply. So supply will remain constrained. This kind of pulls the market picture together overall. It shows supply, demand and operating rates, history and projected. IHS has an estimate of operating rates for 2022 at 84%, growing to 90% in 2025. But this is based on nameplate capacity. And actual available capacity is much lower than this. So you see these rates are probably understated in a major way. And again, I mean Sameer mentioned the supply disruptions that we saw in 2021. A very small, I think it was a 2% or 3% of the global capacity came off-line because of the weather problems and reliability problems and it caused a huge disruption in supply overall. And it made us realize that the market was a lot tighter than we thought it was. So the market is tight today. Demand growth will continue to outpace capacity expansions. So we've got, again, very healthy market conditions today and moving forward. So that's the market situation. In addition, we as a business are operating at very high rates. Margins are good. We're delivering strong profitability. In that context, we're working on 2 key initiatives to expand our core business and then to strengthen our overall competitive position. The first -- our first initiative is a major investment in the PVC value chain. We'll be expanding capacity by 1 million tons in really what's going to be a 4-year phased investment. It will be a mix of new investment and an expansion of existing assets. In the short term, we've identified some smart capital-efficient debottlenecking and expansion projects that will give us about 120,000 tons of capacity in the short term. And we're working on those right now. And then in the medium term, we're going to invest in a new integrated facility that will bring us to the -- that will keep us at the low cost end of the supply curve. The strategic rationale for the investment. We've talked about some of these already. It's the market situation. It's advantaged access to raw materials on the U.S. Gulf Coast. The U.S. Gulf Coast is also an excellent location for logistics and to reach other markets. We've got these capital efficient investments in our existing footprint that will allow us to unlock value in our existing plants. And the project -- or the series of projects will provide or return on capital that's well in excess of our cost of capital. So we estimate that when the project -- the expansion is finished, and mature, it will be contributing about $650 million in EBITDA. I wanted to make a point here. I mean Sameer talked about it earlier, but the -- but the barriers to entry for this industry are high. The value chain is complex. And to invest and operate this space, you really need to have world-class technology, strong operating capability and very deep value chain knowledge. You also need the ability to deploy large amounts of capital, and we at Orbia have these capabilities. A couple of other things to mention is that sustainability will be key. It will further secure our supply chain and our raw materials for our compounds, our building infrastructure in our Precision Agriculture businesses. A couple of other things to mention is that sustainability will be key here is that in our industry, this is the place to be. It's a great place to operate from, and it makes our business extremely resilient. And our new investment will help strengthen our position further, it will move us even further down the cost curve. The second key project or major initiative that I want to talk about is an increase in our specialty resins capacity, and that's to address global growth. The project will increase our capacity by about 30%. It will help us address growth -- high growth in key high-value segments, and we'll take the opportunity to also implement our best-in-class technology across our system of plants. In addition to the big projects that we've been working on, we're also deploying a number of excellence initiatives to improve efficiency, to reduce costs and to take care of our people. Let me start very quickly with people. We -- in the safety area, we had pretty good performance in 2021, in fact, very good performance. Our TRIR was 0.35 -- but our goal is 0 injuries for our business overall. And so we've set an interim target of world-class. We want to be best-in-class. So we're targeting 0.2 by 2025. I'm happy to report that so far this year, we're actually tracking a little bit below that level, a little bit better than that level. In the sustainability area, our goal is to become a leader in the industry. Again, we're going to be -- it's going to be a key factor in our investment choices. We're going to maximize clean energy and renewable both from day one. We also have a bio-based PVC under development, and there's been very strong customer interest for that product. In the Commercial Excellence area, we've got a centralized commercial organization in place that provides very responsive, disciplined and efficient global pricing. And it was really instrumental in us increasing our margins quarter to quarter to quarter in 2021. We're also directing significant volumes to Orbia -- Orbia Wavin, sorry, Orbia AlphaGary to capture higher integrated margins overall for the company and, of course, to help the businesses grow in the supply-constrained environment. And then finally, in the operations area, we've got a great team in operations. They ran our plants last year at well over 90% utilization. And they're working on a program to use dynamic modeling in order to improve and increase throughput. And we've identified a number of projects that should get us between -- well, 3% to 5% -- sorry, 5% to 10% improvement in capacity with very little capital investment. So we're working on those projects right away. So those are some of the things that we're doing to deploy our excellence system that Sameer talked about. Finally, to wrap things up. The execution of our plan will result in improved competitiveness in a stronger position on the low end of the industry supply curve, a move in global capacity share from #6 to #4 for us. Consolidation of our #1 position in specialty resins globally. And at maturity, the projects will allow us to significantly grow EBITDA and provide an increasingly stable source of cash flow for Orbia and will be recognized as a clear industry leader in sustainability. Thank you very much. And with that, I will turn it over to Gautam.

Thank you, Nick. I'm really excited to be here and continue from where Nick left off and talk a little bit more about the Polymer Solutions business at Orbia, and in particular, about the AlphaGary of the compounding business. My name is Gautam Nivarthy, and I'm the President of AlphaGary at the Polymer Solutions Group in Orbia. I've been in the chemical industry now for over 20 years, the last 5 of which have been at Orbia. In the past, I worked at companies like Unilever, DuPont, Honeywell in global roles expanding across Europe, Asia and North America. Very excited to be here. So Nick has laid out about our position as Orbia in the PVC value chain and why we see some of our investments here, really building on our competitive advantages here. Now PVC is a versatile polymer. In fact, I often think of it as the lowest cost engineering polymer money can buy. But there are several applications where the application requires very complex material properties that PVC alone cannot satisfy. And this is where you need to combine the PVC with additives of different kinds and create a unique set of properties for that application, and that is where the compounding business or AlphaGary comes in. So the question for the AlphaGary business is how do we take some of those advantages in manufacturing PVC and use material science to create a new set of properties that solve or address very challenging material applications and deliver value downstream. So what we do at AlphaGary is we start with a polymer we then blend it with a wide range of additives, in some cases, as many as 10 to 15 different additives in proprietary recipes that enable our customers to solve material challenges in unique applications. And in doing this, we must think of the material properties the customers require the processing conditions that they operate with and of course, the economics of their applications. Many of these applications I'm talking about are in highly regulated spaces with high switching costs. So once our material solution is qualified by the customer. It is difficult for the customer to switch out of it, which creates a high barrier to entry. We are also lucky to be working in a number of these market spaces that are large in size and have very high attractive growth rates, such as data and power transmission, wire and cable products, medical markets, consumer, industrial and automotive businesses. So our material scientists are listening to customers, understanding what these challenges are in developing unique recipes to solve their needs. And of course, while doing this, they have to take into account the economics of the application, and that is where our backward integration into PVC resin stands us in good stead. But we also make our own additives like specialty plasticizers and stabilizers that are an important component of the material solutions we develop. Now customers don't just want a product that works. They also want us to deliver the product to them when they need it and where they need it. And that is where our geographical footprint becomes an important part of our value proposition. And just last year, we expanded this geographical footprint by investing in a new location in Asia that gives us the opportunity to serve customers in that market as well. Now I'd like to talk a little bit about some key material challenges that our solutions address and talk about how we are satisfying customer need while also serving critical challenges in the world. Now in wire and cable markets, today's wire and cable constructions address some -- involve some very complex designs. And I have here an optical fiber cable -- but in this optical fiber cable, the material has to satisfy a wide range of different properties. It has to have the mechanical strength. It has to have the right electrical properties. It must be flexible and it should also be resistant to fires because these cables are used in buildings that you don't want to have catch fires or propagate fires. And so our material solutions sold under branded product names like Megolon and Smoke Guard both based on PVC, but also based on halogen-free solutions in this case. They enable customers to meet regulatory requirements, allow them to make these products at high throughputs, all while doing it in an economical way. In the medical market, you probably have seen equipment or accessories like this in hospital environments. Now this is a dialysis tube, you'll notice that it has to be transparent. It has to be flexible. It has to be cleanable. So in the hospital environment, this sometimes needs to be cleaned. And also, it has to be manufactured in a very regulated and controlled process so that it's replicable each time it's made. And this is how we spend time with customers ensuring that these products meet their requirements to enable them to make these products day in and day out. And our product brands under Alphamed, VYTHENE and our plasticizers, which enable the flexibility in these solutions become important. I'd also like to talk briefly about the building and infrastructure space, which is where our downstream business, Wavin, that Maarten will be talking about shortly after me has a key role to play. Now in water transportation with PVC pipes in order to process those pipes, calcium zinc stabilizers that are made in the AlphaGary business are an important ingredient. This allows the pipe to be processed efficiently, but also to be recycled. Now we also make rigid PVC compounds and thermoplastic elastomers that lead to products like this, which might look very simple, but by carefully formulating the material in this product, we are able to prevent the ingress of routes into the pipes in underground pipe applications, which is an important problem in underground water transportation that support buildings and infrastructure. So our strategy in AlphaGary relies on 3 pillars. First, we will grow organically. We happen to be in a number of market spaces that have -- that are supported by global mega trends. In data and power transmission, for example, the increased consumption of data, the rollout of 5G, the use of data across the world, cloud computing, et cetera, and also the investments by governments and infrastructure are creating increased demand for sophisticated data and power cables that require the use of materials that we can make. In medical markets, lifestyle diseases that you see in the West, medical innovation that addresses those diseases, innovations in medical science, the increased longevity of populations, all create increased demand of regulated materials in hospital environments, which our solutions address. And we are also seeing a lot of opportunity created by sustainability. So for example, the use of biomaterials, biodegradable ingredients in our formulations and even increased use of recycled content all create increased demand for our products. The second pillar of our strategy involves geographical expansion. So while the initial phase of our business growth came from the Western world, we are now seeing opportunities to expand that growth into emerging markets, particularly in Asia and several parts of Latin America, where evolving regulatory standards are creating demand for our kind of products. We are also seeing opportunities to create fit-for-purpose solutions that are tailored specifically to the regulatory needs of those markets. Now also, as I mentioned before, we don't just compound materials we are also now getting into making functional additives that support those compounded materials. So for example, we make our own specialty plasticizers. We make our own calcium zinc stabilizes for PVC and we see attractive growth opportunities with investments in these areas. Now with all these strategic pillars, we see an opportunity to grow our top line by 6% to 8% over the next 5 years, and our bottom line by about 8% to 10%. And that does not include some of the opportunities that are very attractive, and we can see in the horizon for inorganic bolt-on acquisitions to support the business growth. Now in terms of our operation -- operating excellence model, I'd first like to talk a little bit about people. Safety is a priority for us as other colleagues of mine have mentioned here. But another very important requirement, especially as we grow into emerging markets is to continue to invest in our innovation engine. And this is something that we are investing to build new capabilities for innovation in the emerging markets where we are seeing new opportunities. Now our business model relies heavily on working with the customer. And so commercial excellence is really critical for that. We need to find ways to continuously innovate, listen to customers, develop solutions to meet their needs. And so we target having at least 20% of our sales coming from new products or modified versions of existing products. We also focus on having a very high customer retention rate. Our portfolio has customers that have stayed with us for decades, and we intend to keep it that way, and that is an important focus for us in our CRM effort. In terms of operational excellence, we are focused on relentlessly on continuous improvement programs, and that includes both fixed and variable cost productivity. It includes making investments in automation, IoT investments and also more traditional approaches such as Lean and Six Sigma. And lastly, as I mentioned, sustainability is an opportunity for our business. This involves not just lowering our own footprint, reducing the amount of waste to landfill, reducing our carbon footprint, our energy consumption, our water consumption, but also and perhaps more importantly, the opportunities we are seeing with developing new environmentally friendly solutions. For example, through the use of biomaterials, biodegradable ingredients and recycled content in our formulations. So to summarize, and this is for the portion covered by both Nick and I, we are really excited by the opportunities ahead of us in Polymer Solutions. We have a leading market position that includes both general and specialty PVC resin and with specialty compounds in the AlphaGary business. Our strategy is built on growing our low-cost position and the competitive advantage that comes from our unique geographical asset footprint. We have a best-in-class specialty product portfolio that includes both the specialty resins that Nick talked about and the specialty compounds in the AlphaGary business. And finally, based on market dynamics that Nick described and some of which I talked about, we see an exciting opportunity to increase capacity and build on some of the advantages and advanced lives around the world. Thank you very much. And with that, I'll pass it on to Maarten Roef of from the Wavin business.

Thank you, Gautam, and good day to all of you. My name is Maarten Roef. I'm the President of the Building and Infrastructure business of Orbia. I'm with the company already a long time, over 20 years, and had previous experiences in the chemical industry and in the packaging industry. I'm really thrilled by the Orbia purpose, not only because of the purpose itself, but especially on how we execute on this. And I think we have an important message to share with you today, as you have seen already for quite a few of the presentations. And I'm going to elaborate a little bit on that in the Wavin business. So the world is facing challenging problems, both in energy and in water surroundings. In that space, Wavin is an integrated leading customer-centric supplier of pipes and fittings and solutions. We build on services that help our customers perform better in their industries. We are recognized as the industry leader, the thought leader bringing innovative solutions to the market. We have a centralized R&D capability in the Netherlands and have local facilities elsewhere. We run in parallel every single year, about 50 new innovations through our programs and bring very many new first to the market. And we hold about 500 patents. Let me give one example of a recent product that we developed. If you erect a new building, for example, a hospital, in a hospital, you do all the installations. And then you test the water mains in the hospital, so the connections to the tap with water. If you leave that building, and at that moment, the patient is only coming in 2 to 3 months later, meaning that you have a high risk of Legionella or Veterans' disease. So what we have developed is a system and the first in the world and the only one in the world at the moment, that helps doing pressure testing with air rather than with water. And if you do it with air and one of these fittings is not cleaned, it's not closed, then you have a big issue. Because in a big hospital, it's very difficult to find that leak. You see the air pressure dropping, but you don't know where it is. So what we have developed is the first whistling fitting in the world. So basically, we did that together with a fluid company. So you put pressure on it, and you know exactly which fitting is not pressured. So this is one of our latest developments that is growing very fast. We have knowledgeable teams that are looking for new innovations and specially new market opportunities on a continuous basis. The business is becoming truly global. We're expanding around the world. We have a truly multichannel approach based on a one-stop shopping principle with a wide program of products that we have. In the last couple of years, a truly entrepreneurial spirit has delivered as a lot of growth. And we are very ready, very much ready to further grow on the strength of the company. We have capabilities to do it via bolt-on acquisitions, as already mentioned by a few of us, but especially also due to organic growth, both in existing markets where we can still expand our positions through replicating products that are not sold in certain markets, by new innovations and also by new services that we are developing. I'll come back to that later on in the presentation. But before going there, let me first move to Wavin as a business. It's a USD 2.9 billion company, business, I should say. And we're serving the belowground and the aboveground applications in the building industry. And we do that to customers that are typically using our products inside of buildings or under the ground. So let me give a few examples. Installers, HVAC installers. Construction companies, water companies, municipalities, all these are customers on our site. And in the distribution, we have a multi-channel approach to the market. So there, we serve via distribution via merchants, via retail, direct, but also online. And we do that via our web shop. Composing solutions are crucial for us. So we look at the water space and the energy space to find new applications. Our legacy is in Europe and in LatAm. We started in 1955, by being the inventor of the plastic water pressure pipe that is currently used all around the world. It stems from Orbia. It's not protected anymore. So everybody can use it now, but it is an innovative solution of those days in 1955. In Europe, we're absolutely a market leader by innovation and sustainability. In our industry, the European market is leading over many of the other markets in the world, even in the U.S. In LatAm, which is a less mature market, we can make use of all the capabilities that we have from the European market. So we transfer technologies. We are a clear market leader with presence in 13 countries. We employ about 13,000 people and 37 locations where we produce. Our business is driven by 4 major megatrends, and they relate very strongly to the United Nations development goals. The first one is about water. Water is scarce in the world. It's called the new gold. It's said that approximately 60% of the water pushed into the water infrastructure is never reaching a tap inside of cities. That is not only a pity of all that fresh water, but also the energy used and the CO2 emissions with that to pump that water around. The second megatrend that we follow is the fact that 50% of the people in the developing world are deprived of good sanitation and hygiene. The third megatrend is about climate resilience of cities. We see too much water, too little water and heat resin cities. And the latter one predominantly because of the lack of greenery and we have a lot of solutions that help that solve. And the fourth mega trend that we look at is the energy consumption in buildings. About 40% of the energy consumption of the world goes inside of buildings. So based on these 4 megatrends, we have composed our mission, building healthy, sustainable environments, which resonates very nicely with advancing life around the world. We have composed 4 pillars to support that. It supports our mission and our strategy. And any decision that we take in the company is based on these 4. 4 selective product lines that we are investing in, saving efficient water supply, better sanitation and hygiene, climate resilient cities and better building performance. So let me now elaborate on a few of our competitive advantages that we have. We outpace in most of the places, the growth of our competition. The first one is our very strong brand. We have the legacy in Europe and in LatAm, but we also have been licensing around the world. And with that, our name is very well recognized in the places where we're not present yet. We have by far the widest portfolio of products in our industry. And with that, we can do one-stop shopping for end users. We're globalizing our services and the fact that we can scale our best practices to the world in a very efficient way helps us outpacing smaller competitors. We have investments and CapEx that we can allocate to a level that most of our competition cannot do, and it helps us bring new technologies on a higher level to the market. We developed digital scalable solutions with amongst others, connected products. Whereby we collect data and in the end, can bring that data to the market on a monetized way. Another one is our strong innovation power. We have 75 people diligently working on new end applications. And next to that, we're working in collaboration with universities, with tech partners and its suppliers to bring new technology to life and to advance our proposition to the market. But most centric to us and closest to the heart are our customers. Some of them have been with us more than 50 years. They have built their businesses with us based on our brand. Our supply chain and our innovation capabilities have brought them to the forefront of our industry -- of their industry. And we back this all up with a very strong IT backbone on which we have strong global platforms running for us. Last, but not least, our already mentioned very often to help backward and forward integration is bringing us to the forefront of our industry, both on the cost base as well as an availability for the raw materials. Let me now switch gear to the growth. We have multiple engines along which we believe that we can deliver on the target that was shared earlier on already by Sameer. A revenue growth of about 5% to 7% and an EBITDA growth of 7% to 9%. The engines that we look at are, first of all, are existing markets where we can bring new products, new services and excel our existing products into markets that are not serving these products yet. And I have a nice example of that as well. This is a product which connects to copper. It's for hot and cold water. You're going to just push it on a copper pipe and then you can connect it to the plastic systems. This is extremely successful in the U.K. We're now rolling the same product a couple of years after its launch in the U.K. out to our LatAm country, very successful and very innovative to the local markets in LatAm. The last part for our growth is M&A and bolt-on acquisitions, plus the cooperation that we have with Shai on the ventures and partners. The second area of growth is in the geographical expansion that we have. I'm very proud that we have just -- the beginning of this year, concluded a majority stake in Vectus, the #6 player together with us now in the Indian market. Jointly, we occupied 19 locations from which we serve the market. Currently being #6 in the market with the intention to grow to a #3 position. In Indonesia, we're expanding quite rapidly with organic growth, and we want to be there with a greenfield factory within the next couple of years. Actually, we're occupying a position of land at the very moment to start that build. Then the last 2 ones are segments in which we grow exponentially fast and they serve a large part of the problems in the world. Stormwater management that helps cities solve their, there are water management problems in their surroundings. So it's about bringing rainwater to groundwater. It's about reusing water. Groundwater is a very important part. Water wells are drying up. The depletion of ground water is a big problem. Soil is compacting and with that cities are compacting and infrastructures are hurt. Cities like Mexico City are sinking 8 to 9 centimeters per year. That's a very massive impact. We have a lot of portfolios that we currently serve in the European market and now exploring around the world. Recently, we did an acquisition in a green and blue roof company where greenery on top of roofs is helping us in storing water and also greenification of the city, bringing a natural air condition to the city. In the indoor climate part, we're focusing on 3, 4 areas of composition and running systems fully integrated systems over a device, 1 device, 1 control system that serves with a dot on the horizon. Temperature, ventilation, humidity, air composition and air quality. We have a lot of products that are currently already in our portfolio, and you can steer that via your telephone. So what makes us strong compared to competition? I think, first of all, we have strong teams. We do a lot of programs around the world with commercial excellence, but let me lift out 2. The first one is e-marketing. In e-marketing, we have done a campaign last year, end of last year, where we rolled out one campaign into 25 countries in one go. That helped us in reducing our cost and get a very broad experience to our people. Over 500 million views and 61 million clicks on videos regarding our products. The second one is web shop and direct route to market. We have recently launched a web shop in Indonesia and India, multiply that now into 20 countries and running that business and exploring that business growth in a massive way, rolling that out to 37 countries in the end. Our diversified teams are very strong on the people side. We have in the Amsterdam office continuously over 15 nationalities. We truly embrace diversity and have a lot of growth in the female part of our organization and leadership. And due to the very good spirit in the company, we have very low turnover of management. Last, but not least, on the sustainability side, we have set strong targets. We started our first recycling factory in 1991, so a long time ago. Ever since we have been using a lot of post-consumer recycled material in our products. We have the aim to do 25% of post-consumer recycle materials into our products and recycle up to 90% of our products, 100%. So we have set targets that are reachable, ambitious and are helping our customers also reducing their footprint. So before wrapping up one major example of many that I could share with you reference case in France. Our infiltration rate that you see here is produced out of 100% post-consumer recycled material. It's helping bringing rainwater back to groundwater. So it's installed below ground. This is a project with 10,000 crates involved. The product itself is lightweight, can easily be installed. It's very good on logistics. It helps storing the water from roots and harden surface and bring it back to groundwater. In Europe, every single erection of a new building needs to be disconnected. Sewer systems are under designed and cannot handle the stormwater management anymore with the increase of urbanization that you heard before. So this is coming into the European market now, but most likely will grow exponentially thereafter around the world. So let me finish off by wrapping up why we believe the Wavin business is a strong growth engine for the Orbia business. We are an industry leader, a thought leader. We have proven that we can bring new innovations to the market. We've also proven that we can expand on new technologies, acquire technologies and technology that we develop ourselves. We have also proven that we can scale outside of our existing markets. And with that, we are set up to grow our business very fast in the next years to come. Our teams are ready for it. I'm ready to support that. And I hope that in the due course, you will be excited to see what the Wavin business can contribute to Orbia. With that, thank you very much. And I think we now have a small pause.

So thank you. Thank you, Maarten. So we now have about a 15-minute break in the program. We will restart at 11:00. [Break]

Good morning, everybody. Great to be here with you again and even greater that we are not after a lunch break, only a coffee break. So my name is Gaby Miodownik, I'm heading Netafim, the Precision Agriculture business of Orbia. And I'm very happy to be here with you and share what we do and what we plan to do in the coming years. I've been in Netafim almost 19 years in different leadership position, started as a CFO of one of our regions and from there, grew to leadership of specific countries and bigger regions. And in the last 2.5 years, I'm in this position of President of the company. Before Netafim, I worked a few years as a manager in KPMG Consulting. So let's start. Netafim is the global leader in the irrigation business, specifically precision irrigation, which is what we do, and we are well positioned to continue this leadership and expand our market in the coming years. We are well equipped to increase our market share in our core markets, as I will explain in the coming moments. But on top of that, we have clear plans how to take this leadership position and use it to enter into new markets such as extensive crops, greenhouse business and to offer to our solutions digital farming solutions, much more than are existing today in the market. We are known and our brand is known for the innovation part of our business. We were the pioneers of drip irrigation 57 years ago. And from there, we continued with the culture of continuous improvement and innovation in our basic products, which are the drippers and drip lines but much more than that, also in the way we use our systems to enter into new crops and new geographical regions by our agronomic knowledge and technical knowledge. And by that, helping the farmers to use the system in a better way and improve their productivity. As a leader, we have the most developed footprint and distribution network in all the markets we operate. And as part of that, we are using these trends in order to be able to grow faster, offering new solutions in new markets into these markets. And these solutions are not only products. These solutions are also new applications, new business models and adding new things that are not current -- part of our current portfolio using this footprint. And I will elaborate in the coming minutes on that. Let's see what is Netafim today. But before that, let's speak a little bit about the history. Netafim was founded in 1965 in the Kibbutz in the desert of Israel. Kibbutz is an agricultural community that had the idea, together with a local engineer that using drip irrigation to cultivate makes better life for the plant. Started by that idea and from there, expanded first in Israel and a few years after went out to the world. And today is the largest irrigation company in the world, as I said, focused mainly on drip and precision irrigation. We are a $1.1 billion company that crossed the $170 million EBITDA last year, with a margin of 15%, which is a little lower than our usual margin because of the challenges last year of raw material costs and transportation. This year, as you could see, we started going back to our margins and expect this to continue in the rest of the year. We estimate our market share in the precision irrigation around 30%, and we have 5,000 employees all around the world, operating with 17 manufacturing plants in all the continents. Sameer talked with us about the necessity to grow more food in the coming decades to feed our planet. Let's talk a little bit about the water use. 70% of the water today in the world is used for agriculture. But this 70% is irrigating only 24% of the land. The rest are still farmers that are praying for rain as 1,000 years ago we used to do. And if we deep dive into this 24% of irrigated land, still 75% of the land, which is irrigated is using the most inefficient way of flood irrigation. Only 7% of the irrigated land in the world, which is less than 2% of the total agricultural land in the world is using micro irrigation or precise irrigation solutions. And this is the potential we are talking about. Just to give you a sense, 1% moving up from 7% to 8% of micro irrigation in the coming years represents an addressable market for the precision irrigation industry of approximately USD 6 billion. So why is it that we are so passionate about precision irrigation? What does it do? So first of all, as human beings, we like to eat and drink a few times a day. The plants do the same. When we irrigate them by flood, the plants get water and nutrients once a week, once in 10 days in 1 shot and then they need to live with it through this 7 or 10 days until they get it again. With drip irrigation, we give the roots of the plant, the water and fertilizer they need every day in the time they need it and the quantity they need it. And this results in a much higher yields per hectare or per acre compared to the other irrigation methods and obviously compared to non-irrigated land. But together with that, we offer the farmers, reduced labor costs in using our systems, reduced use of fertilizers and crop protection and reduced use of labor and energy. So all of that is resulting in a much better economics for the farmer that is using our type of technology. In terms of water, as you can imagine, using drip irrigation versus flooding the field is saving a lot of water. And we are talking about average of 50% water savings compared to flood irrigation solutions. All of it together means to me one world, sustainable agriculture because all of that is basically coming to the fundamental of using less natural resources like land and water and energy, creating more food in the same area. And on top of that, also reducing the carbon footprint of the agriculture. This is in a nutshell what is Netafim, as part of Orbia. Improving sustainability in agriculture and creating food security for our coming decades, grandchildren and their grandchildren. Where are we operating? We operate in 2 very important markets. One is the precision irrigation market. As I shared, we are approximately 30% of that market, which is estimated today in around $3.5 billion a year. But this market is growing faster. After COVID, we see a lot of growth coming from the necessity of governments and private sector to increase the food security to make sure they produce more locally and depend less on logistics to bring their food to their countries and also to produce faster than needs of the coming years. So this drives a faster growth than we saw in the last decade in the precision irrigation market. And with the plans I will share in a moment, we plan to [ overpace ] this growth in the market. The other segment, we decided strategically to enter into in the last 2 years, is the greenhouse segment or protected agriculture if we would like to call it. This is also a segment that is growing a lot in the last few years and is expected to continue growing because of the need of local food production and in a much better control environment. This is a market we decided to enter through the acquisition of Gakon, a leading Dutch greenhouse supplier of projects and services for the greenhouse industry. And using our footprint all around the world, our plans are to take the knowledge of Gakon and the capabilities of Gakon and using our footprint to enter into the key markets of greenhouses. This is a picture of our solutions. I would like to show it working for you, but you will get muddy and wet. So I prefer just to show you a picture. We offer everything a farmer might need from the water source, delivering the water to the field itself. And obviously, everything he needs inside the field to irrigate the crop and to control the system in the best way using digital farming solutions. Our unique capabilities are in the engineering part. We can take a small farmer in India of 1 acre and also huge governmental projects of thousands of hectares in Rwanda or Ethiopia and tailormade the solution to the farmer needs. Part of our unique knowledge is the agronomical knowledge and the technical knowledge, and this is one of the main strengths and competitive advantage we have in the market. We have hundreds of people on the ground supporting the farmers after they install our system, not only during the installation to make sure they make the best use of the technology and by that, improve the productivity and reduce the use of water, energy, fertilizers and labor. We have hundreds of patents that are not only in the drip irrigation solutions, but also in all the other products that you see here in the picture, and we continue to work on developing the new area of drip irrigation, as I will share in the next slide. So our plan for growth are growing our revenues in a pace of 10% to 12% annually and -- sorry, 8% to 10% annually and growing our EBITDA 10% to 12% in the coming 5 years. And this is based on a few pillars of strategy. One is the core business. In the core business, we have the main crops we operated in the last 50 years, which are high-value crops, orchard, vegetable, berries, greenhouse solutions, et cetera, in which we are a clear market leader. This market is growing due to all the trends that I shared with you already, and we plan to expand our market leadership there by offering new solutions such as digital farming and also new innovative solutions that are tailor-made for this type of crops. But the other part that Sameer already mentioned is the new horizon, which is the commodity crops or the extensive crops in which we have a lot of success in the last few years in growing, but our plans are to grow even more. We are working very hard with our R&D teams to invent and tailor-made new solutions for these type of crops, which will be more accessible and will help the farmers to invest faster in this type of technology. And also together with governments that are understanding the need for this type of technology, we are helping the governments to create programs of local subsidies that will help the farmer invest while he has some help from his government. These are markets that are growing very fast because of the understanding of the government, they need to support the industry. The other part is new services. We came with a new model, which is called Irrigation as a Service in which we basically operate the system, the irrigation system for the farmer and invest for him, and we kind of lease it for him during the use of the system. And this is helping us to show proof to farmers that are more hesitant that the system is working and giving them advantages. This is one of our main strategies to deal with the barriers that are today in part of the extensive crops to enter with this type of technology. And another one is the projects and mega projects capabilities we have. Since we are at the forefront of offering full end-to-end solution to our customers, we came to know that we can offer projects from the water delivery until the drip irrigation. And by that, partner with governments to create new areas of irrigation in their countries. A great example is the government of Rwanda in which we partnered in creating a new area of thousands of hectares of irrigation, an area that had nothing before as part of their growth and food security strategy for the coming years. Fourth pillar is digital farming. As I mentioned, we are already a leader in the digital farming arena of controlling the irrigation system with solutions that are controller, cloud-based, giving recommendations to the farmers. But we are planning and have concrete plans how to take this furthermore, using all the technologies that there are today in the ag space, in the digital farming space of AI and machine learning and adding to this platform more solutions that the farmers can benefit from and increase even more their productivity. Last pillar, as I already mentioned, the greenhouse market. We did the acquisition of Gakon and we have concrete markets, which are North America, China, Australia and Middle East on top of the current business of Gakon today that we are going to take this technology and take significant market share on our route to become a clear leader of the greenhouse business in a few years. In terms of operational excellence, we have commercial excellence efforts that are all around as part of being better in what we do. One of them that Sameer already mentioned and is very important for the future, is working together as one Orbia together with business -- with the businesses of Polymer Solutions and building an infrastructure and creating a new PVC pipes that are fitted for irrigation solutions. On top of that, we are leading in our operational activities, not only in the product itself, but also in the technology and we produce these products, the speed of production and the innovation that -- and that gives us a competitive advantage over the market. In terms of people, we are very proud of our people all around the world that are passionate day by day and doing every day the help of farmers to grow more with less. We are working a lot on talent programs to make sure we have the correct people in the right positions for our current needs and also for future needs and also on partnering with the local communities in which we operate and supporting them with our volunteering activities. Last but not least, sustainability. Sustainability is the heart of what we do, as you know. We are supporting by our commercial activities, the sustainability of agriculture for the coming decades. So this is what we wake up every morning for. But on top of that, we have programs that are used -- that we are using in order to improve the sustainability in the way we work. For example, the region concept in which we take the drip -- the used drip lines from the field of the farmer, recycle it and bring it -- use again the recycled material as part of the new driplines. And this is helping us to reduce the carbon footprint and the plastic footprint in the world. This is just one example. On top of that, we are always obviously focusing on increasing the renewable energy use and reducing the waste in our factories. I would like to share with you before we finish, one story of innovation in action and how we can really revolutionize the world of agriculture in the coming years. Rice is the biggest agricultural crop in the world, which represents the use of about 40% of the water in the world. On top of that, it is because of the anaerobic way of the paddy fields that are irrigated, it produces 10% of the methane gas emissions in the world. This is similar to the airlines all around the world in 1 year just to get a reference. Our innovative solutions of agriculture -- of our agriculture department after 10 years of work succeeded to come with a concept in which we can use drip irrigation to cultivate rice instead of the traditional paddy irrigation that you see in the pictures. This is helping the farmers again to produce more using less labor. But on top of the increase of yield and using less labor and less water, the great impact of this solution is the sustainability impact of reducing the methane emissions to 0 because instead of growing in an anaerobic situation, the rice is being grown using drip irrigation. This is just the beginning. We did until now in the last 2 years, 3,000 hectares of these type of solutions in a few countries. But just imagine what this market could represent in a few years if we succeed in our efforts to convince governments, to convince farmers to move to this new type of irrigation. These are millions and millions of hectares that represents addressable market of millions and millions of U.S. dollars. And the most important, this is sustainable agriculture in practice. So just to summarize, we are the largest provider of precision irrigation solutions but we are in a market that, although it exists already 50 years, it is just in the beginning. The potential for growth is amazing. We have concrete plans in different aspects of our activity to grow our market and through that also to grow our market share and to increase the market -- the growth of our activities. Netafim by me, and by the 5,000 employees that work in Netafim as part of Orbia are really passionate about advancing life around the world by helping the world grow more with less. Thank you very much. Peter?

Thank you, Gaby. Good morning, everyone. Welcome. My name is Peter Hajdu, and I'm the President of Dura-Line, Orbia's data communications advanced connectivity business. Now I'm an economist, and I'm also a technologist. I studied and lived in Silicon Valley, and I started my career at McKinsey & Company. Later on, I spent more than a decade working for technology business, Cisco Systems, where I've been in various leadership positions across the globe, also running businesses for them. And then 4 years ago, I arrived to Orbia. And I'm incredibly excited about Orbia's datacom business, Dura-Line. About Dura-Line, Dura-Line is basically very, very proud to be contributing to the overall purpose of Orbia, advancing life around the world by supporting the build-out of the next-generation connectivity business in the world. And in the next 15 minutes, I will be talking about our business, the performance of our business, the potential of our business. And also, I hope that by the end of my presentation, you will be just as excited as I am about the future ahead of us. Orbia and Orbia's Dura-Line business is the world leader when it comes to designing and manufacturing conduit solutions. Conduits are an essential building block for any type of network. This is essentially one of the ground to home solutions that Juan Pablo was talking about. This product is actually the physical pathway to any type of fiber connectivity under the ground. And as you probably know, fiber connectivity is essential for all digital services and therefore, the entire digital economy. Our material scientists have actually combined plastic resin with silicon oil. And as a result of that, a new material was born called SILICORE which is inside these tubes. Now SILICORE enables the coefficient of friction to be incredibly low. What it means is that any network operator who would actually deploy this product into the ground would be able to manage the cable and to get the cable for much, much longer distances than before. That is, for example, one of the advantages of these products besides what Sameer was talking about that any network operator who would deploy this product would actually create an opportunity for the future to manage the cable options, to deploy further cable without having to dig up the street and therefore, causing disruption to our everyday life. We are the world leader in this. We have the largest market share in the entire globe when it comes to physical conduit solutions. Now we are also incredibly proud to serve some of the most advanced largest technology companies and telecom companies in the world. We work with mobile network operators, with Internet service providers, with data companies, with streaming companies, with cloud companies and also with public utilities who decide to invest and build government-owned networks. And many of those customers, we have been serving for a long, long time and we are very proud of those relationships. Because of our proximity to these customers and because of the footprint that we have globally, the extensive footprint, we actually believe that we are really well positioned to capture the investment -- the upcoming investment in fiber network deployment and that opportunity creates an incredible business outcome for us in the future. Now our future growth is predominantly going to be driven by expanding our core business by building -- by building upon our manufacturing footprint and sales coverage as well as bringing new products to the market with higher value-added in different form factors and more advanced features. And we will also invest in digital solutions and in design capability, so we could actually help our customers to improve the efficiency of their design, their employment and for them to be able to optimize their network management capabilities. A short snapshot about Dura-Line. Dura-Line is a $1 billion business. We actually manufacture 500 million, so 0.5 billion meters of conduit every single year. We have 2,000 people spread across 17 locations in the globe. And while last year, we had a decline in our EBITDA margin, our historic performance is between 18% and 20% of EBITDA margin. And as you have probably seen in the Q1 earnings announcement, our business is back on track to deliver similar results. The disruption last year was mainly caused by COVID-related -- by supply chain disruptions as well as various COVID-related disruptions. We actually, as a business, we have long seen the need for fiber deployment and network development. And we also have seen that COVID and the disruption that it has caused in our life has actually accelerated that need in a great deal. If you -- I think all of you remember that 2 years ago in the spring of 2020, more than 1 billion students across the globe have found themselves outside of a classroom and in front of a digital screen. That has not been unnoticed by private investors or by public investors and governments. The most recent $1 trillion infrastructure built by the current administration in the United States earmarks $65 billion for broadband investment, and there are very similar plans across the European Union and even in emerging markets. And that public investment and government activity will be coupled with private investment as well, the largest technology companies, the largest telecom network operators and really large infrastructure funds are all ramping up their investment in digital infrastructure, including fiber, including data center infrastructure and all the related technologies. And we believe that we will -- we are very strongly -- we can very strongly participate in this expansion of the digital infrastructure. Now there are 3 market forces and technology transitions, which are really driving the demand for connectivity. The very first one is what I have talked about, investment in broadband. In the last few years, in North America and in Western Europe, around 60 million households have been connected to fiber. In the next few years, another 100 million households will get similar connections. Second, 5G technologies, investment in 5G. 5G is a wireless technology. And there will be around -- nearly $1 trillion in the next few years invested in building 5G connections. And despite the fact that this is a wireless technology, the antennas, which are providing the wireless access, they actually need to be extensively connected by fiber if people want to enjoy the bandwidth requirements and the latency requirements of proper 5G connection. And thirdly, and also very importantly, investment in data centers and cloud technologies. I am sure that all of you are familiar with the multiple enterprise cloud solutions that we are all using every day. Also, the consumer solutions, the streaming services. All of these services require extensive data center infrastructure investment. And behind those data centers -- require data center investment requirements, there will be fiber connectivity expansions as well. So all of these efforts and all of these programs are actually feeding into the expansion of our total addressable market. Urban and rural broadband, as I have actually described to you and the other factors are all causing basically the addressable market for passive network infrastructure. And within that, the addressable market for fiber conduit to grow rapidly. According to our analysis, we estimate that in our core markets in North America, especially, this market is likely to grow double digit. And conduit alone could be a market worth of $5 billion or more by 2027. Now we are incredibly proud of our achievements over the last decade. And we believe that some of those achievements are really a strong foundation to a competitive advantage, a sustainable competitive advantage that we can have in the next coming years. Dura-Line has, by far, the largest global footprint in terms of conduit manufacturing capability. We have 17 manufacturing locations on several continents. This actually gives us an ability to be very, very close to our customers. Furthermore, we have one of the largest and most sophisticated commercial team and sales team in the globe. What I mean by that, these are people who are account managers, they are product specialists. They're solution architects, they're customer service representatives. Every single day, they wake up with one thought, how to partner with their customers. And those customers tend to be some of the most sophisticated, most advanced telecom companies in the world. Some of them we have been serving for decades. And the reason why this is so important because they are the most demanding ones. And if you have partnership with the most demanding customer, then you will learn something that your competitors will not learn. And that will be a source of knowledge, which then later can be applied in product development, in solution architecting, in design capabilities. And all of those things are things that we are building upon when we actually build the business ahead of us. Now our growth is predominantly built on 3 pillars. The first one, which actually is going to be the source of majority of our financial performance in the next couple of years in the short to mid-run, is actually expanding our core business, expanding our sales coverage and upskilling our people as well as upgrading our capacity both in North America and in Europe. The second one is that we will actually bring to market more advanced products. Our teams are really working very closely. It's a customer-centric innovation that we do every single day. We work very closely with our customers to advance the product portfolio that we have as well as to increase the value added as a result of that. And thirdly, we will be investing in digital solutions because we believe that as our customers go through a life cycle of designing networks, deploying networks and then optimizing the options of their networks, we have the ability to participate in that life cycle. And with our deep knowledge of installing physical networks, basically, we can help them optimize their own performance and really run their businesses in a more efficient manner. Now I just want to very briefly talk about the operating system that we have in place. And many of my colleagues have talked about this as well. we actually, over the years, we have become a safer company, a company which is more diverse. In the leadership team of Dura-Line today, we have 8 nationalities. We have also become a company which is more sustainable. During the last year, we actually have managed to reduce our Scope 1 and Scope 2 emissions by 11% by being a company, by being an organization and the business, which basically has the ability to reduce the intensity of our water usage, our energy usage and also the greenhouse gas emissions. Now Sameer also talked about the example that we actually have found very, very strong synergy with one of our businesses, which is led by Maarten, the Building and Infrastructure business Wavin. Over the years, we actually have the exchange assets amongst us. We have gained 2 manufacturing plants in Europe. And we have also given up 2 manufacturing units in India. And as a result of that, both companies have become stronger in their respective territories. We are very proud of that. We are also developing and deploying Dura-Line Academy, which is a global educational platform targeting the engineers, the architects, the network specialists so they can learn the latest -- learn about the latest conduit technologies. Now last but not least, I would like to bring all of this together through an example with the real customer. Over the last 2 years, 1.5, 2 years, we actually have partnered with one of the largest cloud companies in the world, multibillion business, which has reached out to us because they were planning to improve their connectivity between their data centers. And our team has actually worked with them in defining the right design, the right products that need to go into the doc bank, and they have managed to optimize the entire solution. Our solution architects have extensively been involved. We have actually worked through the entire operations value chain to actually rapidly scale up the production of those products. And we have also offered the help of Dura-Line Academy, which actually helped their installers to become more efficient in installing these solutions. As a result of that, basically, we have managed to increase the business volume by tenfold in just 1.5 years. And today, this account is around -- it represents -- actually, it is a $20 million per year business for us. Now last but not least, just to provide the key takeaways to you. We are the global leader when it comes to designing and manufacturing fiber cable conduit solutions. We have partnered with some of the largest, most advanced, more sophisticated strategic telecom and cloud companies in the world. As a result of that, we believe that we are really well positioned to capture the increasing -- the ever-increasing opportunities in terms of fiber network deployment. And I'm also absolutely sure, in fact, that as some of our colleagues are watching this presentation online, that there is actually a Dura-Line conduit supporting the delivery of this content to their screens. Thank you very much. And with that, I would like to welcome Gregg. Thanks.

So good morning. Good afternoon to anyone who's watching another continent or good evening, if it's in Asia. My name is Gregg Smith. I'm the President of Koura, which is Orbia's Fluorinated Solutions business. I'm here today to talk about Fluorine and our mine-to-market approach for Fluorine. Let me tell you a bit about myself. I'm a chemical engineer by training. I lost that a while ago by moving into management over the years. But I have worked extensively in the chemicals and materials industry for about 35 years. I have started a couple of new businesses at some of the other companies that I worked for. One of which is in the energy materials space, which I think is highly relevant to what I'm going to be talking about today in our strong interest in battery materials. So today, we operate and work the world's largest fluorspar mine. In the flurospar, is what you saw a little bit earlier here today. Sameer held up this rock. This is another rock. And we have a few that we can take to the tables outside and during lunch, you can actually hold it in your hand and see how heavy it is. But this is where fluorine comes from. And I'm going to tell you why fluorine is so important in our day-to-day lives. But we're unique. Our mineral body is unique. The concentration 65% to 80% flurospar is unique. That gives us an incredibly advantaged cost position with our fluorspar. So please keep that in mind as we go through today. We take an owner's mindset, particularly when we think about our fluorspar and how we operate our mine, and particularly how we operate our chemical plants, to convert the fluorspar into the useful products that are used downstream. We're very focused on the impact of refrigerants on Scope 3 emissions. We recognize we have a responsibility to drive to -- as low a carbon footprint as possible, that's required by the regulators in the markets and our customers. And then lastly, sustainable energy, lithium-ion batteries. So your cell phones, your laptops, some of you have electric vehicles. Those are powered by lithium-ion batteries. And I'm going to talk about that. And why we should really call it a lithium fluoride-ion battery. So a quick snapshot of where we are today as Koura. We are a mine to market. So we take, as Juan Pablo talked earlier, rocks, we convert those rocks into chemical intermediates and then those chemical intermediates are turned into finished products. Those finished products, those rocks today, we generate about $743 million of revenue. We generated about $244 million of earnings, roughly about 33% EBITDA margins. But what I really want you to take away from this is our position in the fluorspar market. Fluorine, as Sameer talked about earlier, will rapidly increase in the quantity that's needed to advance life around the world. Where is it going to come from? Today, China produces about 65% to 70% of the world's fluorspar. Outside of China, our mine produces a significant quantity. We deliver about 18% of the world's fluorspar and fluorine use today. When you look at outside of China, that's way larger numbers, so for the Americas and Europe, our mine is an incredibly important source of fluorine. We then talk about being vertically integrated, so we take that fluorine in the form of fluorspar and we convert it, and we make downstream products. Today, we're -- have a #1 global position in fluorspar, a #1 position in fluorine intermediates. And some of you will recognize this, it's an inhaler. For those of you who have a family member or yourself suffer from respiratory issues, these are incredibly important life-saving device. And we're #1 position in the gas propellent that delivers the pharmaceutical to your lungs. Okay. Fluorine. Why is it important? Well, it's an incredibly reactive material element. When it forms compounds with other elements, those compounds have very special properties. And it's special properties that give it ubiquitous use in our everyday lives. Special water repellency, oil repellency, unique electrical properties. Peter talked about connectivity in 5G. 5G would not exist without the fluoropolymer and fluor coatings that used to enable those systems to work. So it touches everything we've already talked about today. The primary source of fluorine is these rocks, the fluorspar, and we'll have these out a little later today. The fluorine is then used in many applications. And this is why I want you to take away this slide. If I spend a couple of minutes here, I think it's very, very important. You cannot make aluminum. You -- cement high-quality steels without the use of fluorspar. So for an infrastructure perspective, our fluorspar is incredibly important. It's also one of the largest consumers of fluorine today. The next is what I represent here is comfortable -- or we have cooling and refrigeration. This is refrigerants. So refrigerants used to keep our schools and our buildings and our homes, our cars comfortable and workable and livable. Refrigerants also are used to keep like ultra-low cold temperature with vaccines. We read about COVID and the need to keep vaccines at ultralow temperatures. This is done through fluorinated molecules. And that's one of the unique things about fluorine because it has unique properties that it will do this in that kind of a system. We talked about medical propellants. The reason why they use it is because it doesn't interact with the body in this form. So it's able to deliver the medicine and then be released from the body. A number of our key drugs that you may be on or some of a loved one might be on, there's fluorine in that molecule. So the fluorine acts in a unique way. It allows the active pharmaceutical ingredient to actually do its job in the body. And if it weren't there, you wouldn't have the same kind of efficacy or result. And so it's very important in our day-to-day lives. When we think about the future, we talked earlier with Peter on telecommunications, fluorine, fluoropolymer, fluor coatings is key. You need it. You need it in the data centers. You need it to make semiconductors. Again, the phones, your iPads, you cannot make a semiconductor without fluorine. You cannot build a semiconductor without the fluorinated gases that are used to deposit the unique properties to make that chip work. As semiconductors grows, you need more and more fluorine and the tinier the features, typically the more fluorine that's used. Renewables, we also have solar panels you need to keep them protected. And then lastly, I'll spend a bit of time talking about energy storage or renewable energy. Lithium-ion batteries are 10% by mass fluorine. So today, the construct I'd like you to think about, we have minerals from the ground. We convert the minerals into chemical intermediates. We then take those chemical intermediates, and we further reacted into downstream products. In our whole business, it has been around rocks and a concentrated form of this rock is called acidspar. So we affectionately say rocks and sand, we turn into from our mind to market to lithium-ion batteries, refrigerants and medical propellents. One thing to keep in mind, minerals, typically, say, hundreds of dollars per kilogram on a price basis. Chemical intermediates, in the order, say, thousands of dollars per ton -- sorry, thousands of dollars per ton on a price basis. And on the finished products, particularly some of the new battery materials and some of the high-end refrigerants typically like $10,000 per ton. So the value in use goes up significantly, typically in order of magnitude as you go through these step-wise. And while we've been very focused on rocks and sand as part of our legacy and history, going forward, we want to push way further down into the downstream products. This is a bit about our strategy. We have to continue to invest to make sure that the rocks and sand are available, particularly in a constrained world, where fluorine will be in greater and greater demand. We need to make sure that we have the access and availability to those critical materials. As Sameer had pointed out in the value chain slide, you need the rocks and sand converted to chemical intermediates, the mine to market in order to get to the finished products. We are focused on low carbon footprint refrigerants. We have launched 2 materials, R473A, which is a very low carbon footprint of alternative to R23 that's used in ultra-low cold temperature refrigeration. We've also launched R456A, which is another for the automotive aftermarket, which has half the global footprint of our current R-134A material. In health care, we've launched Zephex 152A about 1.5 months ago, I opened a new facility with Chiesi Pharmaceutical, one of our key customers to help us get started in this space. We cut the ribbon. This has a 90% reduction in the carbon footprint of the predecessor material. And this is really critical for all of our customers in the pharmaceutical space to reduce their emissions. And lastly, let me move to the next slide on sustainable energy because this is really a key takeaway. Roughly, say, 30 kilograms of this material acidspar is required to make a typical battery pack in, say, a 75- to -- 75-kilowatt hour battery pack. Those batteries are about 10% fluorine by mass. That's a combination of the salts and the glue that holds the battery together. And it's growing super fast, 20% a year. And we believe that, that growth rate will continue, as you see, the rapid conversion of ICE or internal combustion engines to electric mobility. And we have a number of areas that we see that we can focus on, the salts that are used. The salt is basically the lifeblood of the battery. It enables the lithium-ion to go from one side to the other side. That's a critical component. The additives help the battery perform in cold temperature or have more cycle life or greater energy density. And you have to redesign the system for whatever the particular application is. PVDF, that's the polymer or the glue that holds the cathode material together. That's a very similar molecule to what we do today in Vestolit. And so as we go forward with our efforts in PVDF, we will be leveraging a lot of the people that know polymer systems in our sister business. Recycled materials, Shai will talk a bit about what we've done with Ascend elements. But you have to have a closed loop. There's a huge amount of lithium, but there's also a huge amount of fluorine left in these batteries that has to be recycled. And we are developing the technology to make that happen. And lastly, this is not a static space. We can't expect energy storage to remain the same. Fluorine, because of the -- what I talked about earlier, has unique properties. And as a result, it will be designed in future systems for energy storage, and we want to be out in front to do that. Quickly, I'll focus on this. Safety is a key operating principle for everything that we do from our mine to how we talk about our products and how we work with our customers. It is first and foremost in our minds. In moving into a new space, energy storage, you need to develop and have the right kinds of people and capabilities. We have gone out and built a great team of knowledge experts, material scientists in energy storage space, so that we're able to do the kinds of work that's required in order to get our products adopted and supplied. I'll focus in on sustainability. We have a suite of products, refrigerants, refrigerant blends that will address our Scope 3 emissions. This is not a 1-year effort. This is a decade-long effort. It takes time to convince customers to move to different types of systems. We have some of the basic steps in place. We're working with the end market on that today. But ultimately, in order to meet the regulatory requirements, you'll need even more bold moves. We have one suite of materials called our LFR3 materials. I'm not going to go into the details, but that product alone could meet the future requirements. And we are working with customers on these materials, and we will bring it to the marketplace, and we will do our part to address the Scope 3 emissions. I also want to point out we will address also the SOx emissions. We have a project in place at our plant in Matamoros that comes online in the fall of this year that will help enable Orbia to meet its overall target on SOx reduction. And lastly, at our mine, we have developed a new technology that will enable us to move to a significant reduction in the amount of water that's required in order to process the rocks into acidspar in a water constrained environment. And so we're doing our part for the world and for our local communities to be very good stewards of our environment. So in closing, we have the world's largest highest concentration, low-cost position of fluorspar. We are going to invest in the rocks and sand and in the chemical intermediates and in the finished products. We will continue to work our efforts on low-carbon footprint refrigerants. And lastly, we're making a significant push to providing a number of materials in the battery space. Most recently, last week, as Sameer mentioned, I was in Poland to sign our joint venture with Foosung, creating the Foosung Orbia Technologies joint venture to be the first European producer of LiPF6, which is essentially the lifeblood of lithium-ion batteries. So with that, thank you very much. Appreciate your time.

And good morning, everybody. It's only me and our CFO, so hanging there, okay? My name is Shai Albaranes. I'm leading the innovation and ventures at Orbia, A few words about myself. I live in Tel Aviv, Israel. I'm married. I have 2 beautiful kids. Well, my wife is also beautiful, but they're also. In my past 25 years before Orbia, I was a tank commander in the Israeli army. I launched my own startup and sold it a few years after. Then I moved to McKinsey, worked there for a few years. And before joining Orbia, I was leading the product portfolio of Netafim for a few years. I'm very, very excited to be here today and share with you the journey that we've taken in the past few years. I think it's really remarkable. And on a personal note, I'm very proud and I feel very privileged to work in this organization and to work with an amazing group of people Juan Pablo, Sameer and the rest of the group leadership. Four key messages for today. First one, and you've heard it throughout the whole morning, innovation is really at the heart of everything that we do. Our leadership team from Sameer and the rest of the team is fully committed to innovation and realizes that this is what will deliver the future growth and profitability of Orbia. Message #2, innovation is not a single activity. It's not a single project. It's actually a complex portfolio of many, many different activities, and we think very consciously how exactly we manage them and how we allocate resources to manage those innovation activities. Number three, we're not only relying on our own capabilities, we partner with universities. We partner with start-ups in order to leverage their innovation and our core assets in order to benefit both the start-up and Orbia. And number four, you heard it also throughout the whole presentation, decarbonizing our planet is really our core focus. Let's jump in. So I mentioned that innovation is a portfolio of activities. And we need to decide very carefully how we allocate the resources. Across Orbia, we can categorize our innovation efforts into 4 main efforts. Starting from the left, our business group innovation activities. You heard from our businesses, you know the innovation effort that they are leading. Our businesses interact with our customers on a daily basis. They know the competition. They know the industry trends. They know where growth will come from. They are best positioned to manage core R&D activities. Moving to the right, LaunchPad. This is our internal innovation program. While core R&D efforts are at the hands of a select group of people, across our organization, we believe that every employee has the capacity to innovate. And therefore, LaunchPad allows every employee in the organization to participate in innovation. Startup partnerships, we collaborate with partner with start-ups. We find them, we screen them. We find the right collaborations, and we go together to the market, leveraging our footprint, leveraging our scale. And lastly, Orbia Ventures, we were fortunate by the Board of Orbia that allowed us to invest in early-stage start-ups that are strategic to Orbia. Let's look at this in a little bit more detail. So you heard the stories from each one of our businesses, but it's also very nice to look at our core R&D efforts across the businesses. We have more than 280 professionals working in R&D. And they built in the last few years, a very, very healthy portfolio of over 2,000 patents and 4,600 trademarks. New products and services account for 13% of our revenue, what is known as the vitality index. And this number will continue to grow because this is a very, very important KPI that management has a strong focus on. LaunchPad. As I said, every employee can participate in innovation, a few numbers to back it up. In 2021, we had thousands of people participating in innovation, not R&D scientists or engineers, every employee in the organization. They generated over 850 ideas, and then we invest enormous resources to train, mentor and coach those winning teams and help them take their ideas all the way from initial concept through piloting and full implementation. The engagement levels are amazing. The cultural impact is amazing. We already see the financial results in 2021 and 2022, and this will continue to grow as more and more ideas and projects are being implemented. Now we think very highly about ourselves, but it's always nice to get some external feedback. So this is a quote from a Brightidea. Brightidea is one of the 2 leading innovation management platforms in the world -- digital innovation platform. And we use them as part of our LaunchPad efforts. And they told us that compared to every company that they serve, Orbia is one of the top performers. Start-up engagement. So 2 ways that we engage with startup, either we invest in them and/or we partner with them. Orbia Ventures, $130 million fund that invests in early-stage startups. I've put here on the screen, on the left, a select examples of our portfolio, ranging from agriculture technologies, green hydrogen production, lithium-ion battery materials and stormwater management. Each one of these companies are leading in their space. And each one of our investments need to satisfy 2 criteria. One, it has to be a good financial investment, and two, it has to be aligned with our strategy. Now as most of you know, Venture Capital investment have a longer time horizon and therefore, in order to create a faster time to impact, we also have a partnership program with leading startups. There are many, many use cases -- successful use cases across our businesses. I want to highlight 2 here, just to bring to life the way that we work with those products. The first one is Ascend element, which is also a good example of how the different innovation activities across Orbia are benefiting one another. So we came to know Ascend elements through Orbia Ventures, we invested in Ascend. But we soon realized together with Koura that the value between Koura and Ascend is huge. And in the past couple of years, we partnered with Ascend to develop joint IP to recycle fluorine, to recycle lithium, to recycle graphite. And this IP is now being deployed not only in our own operations, but also in the joint ventures that Ascend is about to announce with the leading car and battery manufacturers around the world. So this is one example. Second example, with Wavin, our building and infrastructure business, TaKaDu is an Israel-based startup that developed advanced algorithms to detect water leaks in large urban networks. They have deployed their systems throughout the world, but they came to us and understood that in Latin America, the footprint of Wavin, the sales force, the customer intimacy, nobody has a better position. And we signed an exclusive agreement with TaKaDu, and we're now commercializing those technologies in Brazil, Mexico, Colombia, and hopefully, if this will be successful also in other countries in Latin America. That's it in a nutshell. Let me emphasize the 2 messages that I started with. We've done an amazing journey in the past few years. We're still in the middle of the journey. We have many more things that we want to achieve Innovation is really at the heart of everything that we do, and I'm very proud to be part of this journey. Thank you very much, and Jim.

Thank you, Shai. Good afternoon, everyone. It's a pleasure to be here with you. I'm Jim Kelly. I'm Orbia's CFO. I've been with the company now for just under a year, and it's really great to be here with you. I'd like to share a number of things with you today. First of all, I'll start with my background. So before joining Orbia, I spent about 30 years in a variety of industrial manufacturing companies, everything from chemicals to manufacture a flat glass and things like that. In the finance organization, essentially building high-performing financial teams, focusing on productivity improvements and working with businesses to create shareholder value. There are 3 main things that I'd like to discuss in my time with you today. The first being sharing our financial strategy, the second being our capital allocation plan and the third being our long-term financial targets and where we intend to be by 2027. Starting with our financial strategy. In line with Orbia's purpose to advance life around the world, our strategy is designed to create value for all of our stakeholders. As that relates to financial targets, you'll see over time here as I go through the discussion, we intend to increase revenues between 8% and 11% annually between now and 2027. When it comes to EBITDA, we intend to grow at an even faster rate between 11% and 14% over that same period of time, thus inferring an increase in our EBITDA margins. We'll be also executing a disciplined capital allocation plan to ensure that we invest in profitable growth while maintaining a strong and flexible balance sheet over time. Thirdly, we'll be using our strong cash flow not only to invest in growth, but also to return cash to shareholders through stable and growing dividend over time. We'll also be engaging in ongoing share repurchases periodically after prioritizing our investments in growth and paying our dividends. I'd like to turn briefly to the short-term view of our numbers to our Q1 earnings release where we affirmed our guidance for 2022. I'd like to reaffirm that today. At the time, we said that we intended moderate growth in revenue for the period. We continue to believe that and that for the year, our revenue will range between $8.9 billion and $9.3 billion. At the time, we also increased our EBITDA guidance for the year, and we continue to support that today, and that will be in the range of $1.75 billion to $1.9 billion for the year. That infers an EBITDA margin for the year of roughly 20% to 21% and takes into account what we're seeing today in terms of economic uncertainties in the world as well as inflation impacts in areas such as labor, logistics and energy costs. Turning to the longer-term view. What really excites me in terms of Orbia's longer-term view is the opportunity to grow all of our businesses over the future period of time. As you've heard from all of the business presidents today, there are significant growth opportunities, whether they be organic, inorganic, in businesses that we know very well and feel that we have a great opportunity to succeed in with very high returns. All of the businesses have incredible opportunities. You've heard the individual stories through the course of the morning. What that will lead to from an individual basis by business, you can see along the bottom of this chart, we expect EBITDA margins to grow from the range of high single-digit levels in building and infrastructure to levels of greater than 15% or higher in both data communications and fluorinated solutions over time. What that will translate to in terms of net revenue and EBITDA growth over this period of time is by 2027, we expect revenues to reach the range of between $13 billion and $15 billion and EBITDA to reach a range between $3.1 billion and $3.5 billion. That infers growth from today's EBITDA margin of 20% to 21% to between 22% and 24% by the time we get to 2027. This will be achieved through various growth initiatives that have been discussed over the course of the morning, leveraging significant megatrends that underlie our businesses as well as strong execution from all of the business teams. Not only will we grow our revenue and EBITDA, but we also anticipate growing significant amounts of operating cash flow. In 2021, we generated just under $1 billion of operating cash. By 2027, we intend to more than double that amount and achieve $1.9 billion to $2.1 billion of operating cash flow. That infers greater than a 60% conversion of EBITDA to operating cash and we intend to maintain that level of conversion throughout the investment period between now and 2027. This will be driven by tight working capital management, benefits from digitalization and active supply chain integration activities. Not only will we have strong cash flow generation, but we also have a very strong and flexible balance sheet. At the end of 2021, you may have seen we had net debt-to-EBITDA of 1.34x and that number has continued to decline as we progress through 2022. Our long-term target for leverage is to maintain a level below 2.5x. We also have significant liquidity available to us of over $1.5 billion to help to fund our growth in future years. We have no short-term debt maturities. We also have a strong investment-grade rating for our debt and a stable outlook. I wanted to talk very briefly about the resilience of the company. You've heard it mentioned several times over the course of the day, but I want to try to put some numbers to it. As you can see on this slide, over the past 12 years, despite the fact that we've gone through a period of an oil shock in the mid-teens, COVID crisis in the last few years and a period of investment with a number of acquisitions over the course of the years, we have succeeded in consistently growing our EBITDA, which you can see along the top. While along the bottom, you can see we also maintained a very reasonable leverage ratio never exceeding our 2.5x target. As to how we'll deploy our cash flow and available liquidity as we go forward, we'll have a disciplined capital allocation model that will involve elements, both investing in growth and returning cash to shareholders. If we look at the investment in growth, as you've heard Sameer mentioned earlier in the day, approximately 70% to 80% of the growth that we've been talking about over the course of the day will come from organic growth. In this case, we'll be investing in activities that we know, markets and products that we know. And therefore, we believe that we have a very high probability of success. These will also not be expensive investments. You heard Sameer say earlier that we'll be investing at 2x to 4x EBITDA. So we expect very high returns from these projects. We'll also then only selectively engage in disciplined bolt-on M&A. These will be small- to medium-sized acquisitions. And again, as you heard Sameer say earlier, the primary activities that we'll look at for them will be growth and synergies and accretive ROIC in the short to medium term. On returning cash to shareholders, you heard me say just a minute ago, we are committed to a base dividend that will be stable and growing. You may have seen already this year that we've increased our base dividend from a historical level of about $200 million to $240 million. Again, we intend to continue to grow that over time with the growth in our earnings. And then lastly, we continue -- we believe to repurchase shares. But that will be prioritized after making growth investments and ensuring that we maintain our dividend to shareholders. The execution of this plan will lead to long-term growth in our ROIC. By 2027, we intend to achieve a level of ROIC between 13% and 15% and to continue to grow that over time. Importantly, in the investment period between now and 2027, we also will maintain an ROIC in excess of 10%, which is well above our weighted average cost of capital. Going back to return cash to shareholders, I just wanted to show the historical view of our return to cash by dividends. So again, you can see here, in recent history, we've consistently maintained a $200 million dividend. And in 2022, we've increased that base dividend from $200 million to $240 million. And on top of that, declared a special dividend of $60 million. That's reflective of the extraordinary results that we achieved in 2021. Again, we intend to maintain and grow this dividend over time in line with the growth of our earnings. In terms of our cash inflows and outflows, for the 6-year period 2022 to 2027, inclusively, you can see here that operating cash flows are expected to fund over 75% of our cash needs for the period. We anticipate generating approximately $8 billion in operating cash over this period. In terms of the outflows of this cash, we intend to spend approximately $2 billion on maintenance capital, which will increase on an annual basis as we go through the period as we grow the business. We anticipate spending approximately $6.5 billion in growth capital. And lastly, about $2.5 billion in return of cash to shareholders. On net, this will mean that we'll be taking on approximately $3 billion in debt over this period, which will still allow us to maintain a level within our 2.5x target for rougher leverage. So summarizing our goals for 2027, we intend to increase revenues to between $13 billion and $15 billion, to achieve an EBITDA level between $3.1 billion and $3.5 billion, inferring an EBITDA margin of between 22% and 24%, maintaining operating cash flow of greater than 60% through the period to 2027 and thereafter, achieving 13% to 15% ROIC growing from there in the mid-teens, maintaining a level below 2.5x for our leverage index and maintaining and growing a stable dividend over time. So in conclusion, supporting the purpose of advancing life around the world that Orbia aspires to, we will create value for stakeholders, growing both top and bottom line while increasing margins. We'll be disciplined in our capital allocation, leading to profitable growth and a strong and flexible balance sheet and we'll use our strong cash flow generation to provide stable and growing returns to shareholders over time. Thank you for your attention. I'd like to turn it back to Sameer.

Thank you, Jim. When I began the presentation today, I said our primary objective is to help everyone here, everyone online and the world have a better understanding of who Orbia is today and where are we headed going forward. You heard me talk about how we create value in customer applications. You heard me and the business group leaders talk about our plans to invest in profitable growth. You heard Tania and Shai talk about how sustainability and innovation are truly embedded in everything we do. And finally, you heard about the excellence operating system we are deploying to massively scale the company. In the end, as Jim talked about it, we are aspiring to deliver outstanding returns, earnings growth, cash conversion as well as steady, consistent and growing returns to our shareholders. I want to end with what we began. And this is really personifying who Orbia is and I would like everybody to leave with this image and this memory, driven by purpose and unified by values. We choose to work on the toughest challenges. From mine to market, ground to home, field to table and lab-to-everyday life, we rely on the collective ingenuity and integration of our value chains, to transform materials into smarter, greener and more efficient solutions. I thank you very much for your attention. And with this, I would like to hand it over to our Chairman, Juan Pablo del Valle for closing remarks.

Okay. I will be very brief because we want to really favor Q&A. And now I will rely on the basics because sometimes technology doesn't work. Just remember, as this company has evolved into a larger company, more sustainable, more global, more professional, I think this phase will resonate more after you heard our leaders explaining our business. Think of Orbia as stewards of capital with owner's mentality, a purpose to advance life around the world and clear future opportunities. Think about us in terms of 4 attributes. We sold rocks, and we are much more than that today, but we have something similar to a rock, which is we are super solid. And we have something very similar to a molecule and to a fluoride, fluorine atom, which is versatility; the versatility that, that molecule and that atom provides. We are obsessed to find the right solutions for our clients, our customers, our community and our planet. And most importantly, as you've seen with Sameer and all our leaders, we have a great group of people that will execute on our plan. Thank you very much.

Thank you, Juan Pablo. So we are going to set up for Q&A. So if you give us 1 minute for that, we need to get chairs on stage. The logistics of it will be we have some questions online, which I will ask Gerardo, and Gerardo is going to be looking for folks in the room with their hand raised, and we have Casey and Diana will bring mics around. And the leadership team will be on stage. So just give us 1 second, we'll get started.

Okay. We should be starting. We're going to have questions from the audience, also from the webcast. So if you have any questions, please raise your hand. And then we will go from there. Nik can you stand up, say your name I think Diana is going there with the mic.

I think first of all, it was really great learning more about your [indiscernible] businesses [indiscernible]. Did this [indiscernible] looking at more strict performance versus nominal performance [indiscernible]? And then thinking forward with the past M&A [indiscernible] growth, can you perhaps -- and this, I guess, is a question predominantly for procurement as in Sameer. Can you talk about what's been [ repeated ] in terms of our return of capital needs in that vis-à-vis the 13% or 12% that you have today, that with or without [indiscernible] is it different by division? You have some very cyclical businesses, some not so cyclical business, which is again just very overall question, is to what degree do you have alignment in terms of the team that I'm looking at here will share remuneration as a widespread method of -- as a meaningful part of your -- well, the conversation of all of you guys?

Thank you, Nik. Happy to take that question. And it's a very good question. As we had indicated earlier, a good part of our growth comes from investing in organic growth in our core markets. And our investment plan over the next several years, we are looking at realizing growth at a cost of less than 4x EBITDA, and that will result in very attractive ROIC for those investments and projects and eventually grow the ROIC of the company over time. And your second question, Nik, it wasn't clear to me what you...

Basically, are you all getting compensated in a very meaningful way with the value of the equity with the company?

Sure. Very good question, Nik. And as I had started off early in my presentation, people are our most valuable asset. And as you've seen over the last several years, we have significantly grown around the world and added a number of talented people. And you cannot attract the best people, one, in today's times, if you're not a purpose-driven company, that's helping address world challenges, is highly focused on sustainability and at the same time, has a compensation system that is aligned with world standards and competitive with world standards. I have a Chief People Officer here in the room, Deb Butters, and you may meet Deb over lunch, and she can talk to you about how we have spent a significant amount of time and energy over the last couple of years bringing Orbia on par or ahead of best-in-class companies in terms of compensation practices.

Do you have any follow-up, Nik?

[indiscernible] I'm not sure if I -- actually, is this -- does that include a material part of equity...

Absolutely.

As cost-price and the compensation of -- it does. Okay.

Absolutely. So most companies typically have several components to compensation, which include a base salary, short-term incentives and long-term incentives. And Orbia has a long-term incentive plan that is aligned with the interests of all stakeholders, and that's a significant component of our team members' compensation.

Okay. I think [ Matt ] from [indiscernible].

I have a question for Jim. The three going in depth you were talking about having, I was wondering if we could get more detail on that, the timing, the triggers. Does it depend on EBITDA growth or just pure opportunities?

It will be opportunistic as we work through the investment period over the next 6 years. We -- as I indicated in the slide, we maintained a strong commitment to generating strong operating cash flow over time. The $6.5 billion may not be spent, in terms of the growth capital, spent fully equally over time. So it will depend a bit on the timing of the expenditure, the growth in EBITDA and conversion of that to operating cash.

What will the composition mean? Maybe thoughts, bank, company?

I would expect that we're going to want to retain some flexibility and take advantage of the best market circumstances we can at the time. So we'll see as time goes on, but probably some combination thereof, I would think.

Thank you, Matt. Is there any more -- any other questions from the audience? I think Pedro Zevallos from Dalton Investments.

This question is for David on Netafim. I wanted to understand the guidance you're giving us. So the guidance that you've made on Slide 77 is total revenue growth of 8% to 10% and EBITDA growth of 10% to 12%. When Mexichem acquired Netafim, the last annual 2017 Netafim had EBITDA of $140 million, revenue of around $1 billion. If I annualize the first quarter, I mean, I get a sales of at least $1,250 billion and EBITDA, which should be in excess of $200 million. That's a 6% 5-year CAGR growth in revenue and a 9% EBITDA CAGR growth. When the deal was sold to investors, I mean there were a few aspects that were really interesting about Netafim being acquired by Mexichem, which was, first of all, the main input for Netafim were PVC pipes. So there was going to be a significant cost reduction and because of the vertical integration. The second was that Netafim was not present in Latin America in a significant way and levering the Wavin distribution was going to be pretty attractive for growing growth. And then, which was not part of the deal, is you guys have recently entered India, which should be a pretty significant market. So my question to you is, is that guidance that you're providing just an extremely conservative guidance because I was expecting something significantly higher than that?

Go ahead, Gaby, and then I'll jump in.

Okay. So first of all, when we look into the markets that we've seen in the last 2 years, post-COVID, I would say mainly, we see that the trends of food security, government and private sector, understanding the benefits of our type of technology to increase food security, stronger than what they were in the last 5, 6, 7 years before COVID. This is part of the reason we are optimistic about our ability to grow faster than what we did in the last few years. Whether it's pessimistic guidance, there are always -- we are 50 years in this business. There are [ areas ] of faster growth when we have the good fundamentals of the market with us, then there -- but we are in agriculture. So there might be cycles also of going down in agriculture. We are now in a good cycle, might be probably 2, 3 years from now, it might go down. So if you look in the long term, I think that our guidance is not a conservative one. I think it's a realistic one, taking into account the last 10 or 15 years. We are in a market that is much more positive today than what it was 2, 3 years ago. But I would not consider it as a conservative guidance. Sameer, if you want to add.

I think you covered it very well, Gaby. What I would point you towards is the levers of growth for Netafim. There is still significant room for growth in high-value crops and through innovation, and we didn't dive into this in this session, but our R&D teams are working incredibly hard to lower system costs for drip irrigation, which then enable faster penetration for extensive crops. So that will be a significant driver of growth. We already participate in extensive crops today. But if you can lower the cost of the system, that will make it even faster. We are now working closely together. So Nick and Maarten and Gaby are working closely to develop fit-for-purpose PVC solutions based on materials technology innovations that will give Netafim a competitive edge in the marketplace, once again, realizing the value of integration. And then finally, you've got the new products and services, our service business model, which we have piloted and run successfully. And we are now in the process of scaling across the world. And second, our greenhouse technology solutions, which is a substantial market. We've acquired the technology, and now we can leverage Netafim's footprint and scale to roll out these solutions around the world. So these things take time. And as Gaby said, the guidance provided is not exactly conservative, but could we potentially exceed it? Yes, if all conditions fall in place, possibly.

I just think that the Netafim story, given the current environment is such a compelling story, I mean, it can really be a homerun for this company. I mean it should be a homerun. I mean you're in the right place at the right time.

We'd have to agree on that. Couldn't agree more, Pedro.

Now Pablo from Barclays. Please, Pablo.

I'm Pablo Monsivais from Barclays. I just have a quick question. It's my perception that your portfolio of product has been viewed more like it's a cyclical nature or industrial-driven. But today, I've learned that it's not. And it's perhaps in 5 years from now, you have much more resilient products from day to day. So do you have a number that you can share with us or a view on how the cyclicality of your portfolio will go over the next 5 years?

It's a very good question, Pablo. And so -- and this comes up again and again. And so let me directly address it. There's this notion of cyclicality, the notion of being in commodity products. It's very important to understand what drives the cycle. A cycle is driven when you have economic cycles, you have demand and demand can go up and down with global expansions and recessions. And then you have cyclicality driven by the supply side when people deploy large amounts of capacity and capital at the same time, and the market cannot absorb it. In the businesses we operate in, the Fluor or Vinyl chain, the PVC chain and the Fluorine chain, today, that is not the case. As Nick showed, demand for PVC has grown monotonically over the last 2 decades and will continue to do so in the foreseeable future. And the capacity additions are small. They are not big enough to cause any cycles, okay? So I'm less concerned about cyclicality. Now there are others who believe we are in commodity businesses. And what I'd like to say is, today, more than ever, people are realizing the value of secure supply chains. And it's these businesses, if you look at the margins, they're well above 30%, okay? And so if you are at the bottom left of the supply curve, it gives you a lasting competitive advantage, the barriers to entry are high. And simultaneously, we are absolutely excited about growing in downstream, high-value products and applications that you heard about. And so our strategy is, of course, to grow massively in downstream value-added applications, whether it's in the Fluor or Vinyl chain, Building & Infrastructure, Precision Agriculture, [indiscernible] chlorinated solutions and backstop that with our tight vertical integration, which gives us a very lasting competitive advantage. So hopefully, that answers your question.

Thank you, Pablo. Now Stefan from Bank of America.

This is Stefan Styk with Bank of America. I have 2 questions. The first one is your 1 million tonne capacity expansion in PVC what is CapEx associated with this expansion? And is this already in your 2022 CapEx guidance? And then the second question is your plans on the revolving credit facility, if you're planning on drawing this down or leaving it undrawn in the midterm?

So Stefan, let me take this initially and then Nick can supplement that question. The 1 million tonne expansion, don't think of it as a one and done. It's a mix of smart debottlenecking of existing capacity, brownfield investments and some new greenfield investments, and these will be spaced over time. And so it will -- you will see this playing through '23, '24, '25 over a period of time. In terms of specific numbers, we're not ready to give that out right now other than I can tell you that it's within the guidance of less than 4x EBITDA. Okay? And so -- and we are pretty conservative in our planning assumptions. But that's what I can share with you at this point. Nick, do you want to add something?

So when it comes to the revolving facility. So as I mentioned a minute ago, we would, I'm sure, retain flexibility in terms of our financing and our balance sheet. So we have drawn down a bit on the revolver just very recently. We may continue to do that a bit over time, but I think we'll also want to retain some of that as being available in the longer term. So I would expect that future debt financing would be through a combination of that and other sources of funds.

Thank you. So now I'll take a question from the audience through the webcast. This is from Frank McGann, Bank of America. Based on your estimates, your base partner solutions in Building & Infrastructure segments are expected to see growth somewhat below your other businesses. Yet these businesses are important contributors to results. Is there still any thoughts to reduce your exposure to these more commodity-based segments? Or is that still a possibility over time? I think it's for you, Sameer.

Thank you, Gerardo. And Frank, thank you very much for joining the webcast. And hopefully, wish you here in person, and we'll see you soon. But I think what I just answered about the perception of commodity products, that addresses part of your question. In terms of growth rates, that's purely a function of scale. Our Polymer Solutions business and our Building & Infrastructure business today are very large businesses. They are above $3 billion each. And it's harder to scale those businesses at the same rates at which we are scaling some of our lower businesses. So hopefully, that answers your question. In terms of reducing our exposure to commodity businesses, once again, I'd rather not label these as commodity businesses. These are businesses that provide essential materials. These are businesses that have high barriers to entry, extremely strong margins and sustainable competitive advantage. And so we plan to be in these businesses because it provides tremendous integration value as we have seen last year for our downstream businesses.

Thank you, Sameer. I think we have a question from Abraham from BlackRock Mexico. Please, Abraham.

You mentioned that you are improving your free cash flow generation and conversion rate. And one of the drivers is the working capital. So can you tell us a little more detail about the efforts that you are doing in this regard, please?

Sure. So we're always attentive to our working capital management and generation. So we have been working significantly actually this year on developing some plans to reduce our number of days really across all elements, receivables, inventory and payables. Everything from working with customers on terms of sales to internally managing our inventories and working through our supply chains to make sure that those are efficient. As well as then working with suppliers on payable days. So it really is across the gamut, and we are committed to continuing to make progress in this area over time.

Thank you, Jim. I think there is Lilly from GBM.

I have 2 questions, both for Polymer Solution. The first one, PVC prices were too high, I think, record levels in November. So I think that my question is your guidance considered that eventually, we can expect a deceleration in terms of revenue or EBITDA assuming that demand is expected to grow only 3%, 4%?

Nick, why don't you take this question, and I'll jump in as necessary.

Yes, I'm happy to do that. Margins are more important in our business than actual overall price levels. And so that's really what we look at. And our margins today are probably close to what they were at the reference period that you just mentioned. So I don't know if we can say anything more in terms of guidance, Sameer.

Yes. I think it's hard to talk about specific margins. I think what I would point you to is more than prices, the spreads are more important. And your position on the cost curve and the underlying raw materials that affect that, your position on the cost curve, are very important. And we are based on U.S. shale gas and have very competitive economics. And if you think about players on the right side of the supply curve, they are based on oil, which is close to $100 a barrel and they're based on naphtha. So from that standpoint, the spreads that we experience in North America are favorable. If you look at external publications, they're all predict that PVC prices will eventually come down to some extent, but settle well above pre-pandemic levels, okay? And we don't have a crystal ball, and so we follow what everybody else follows. But once again, I would point you to the fundamentals. The fundamental supply-demand situation is very tight. Okay? And that will play itself out in the marketplace. In terms of our planning for long-term capital projects and if you look at our expansions, we think in 10-year, 20-year terms. And so when we model these scenarios, we don't go by what's happening in the marketplace in 1 year or 2 years. We take a very long view on what we think it will be like and we are very conservative in our modeling. Yes.

Perfect. The second is also about Polymer Solutions. I mean, I get the point that being integrated is important and makes sense. But my question is about sustainability. I mean, this business, I think it's the most CO2 emission or the most intense in terms of water or waste. So I don't know if you can give us more like a strategical view here.

It's a great question. Let me give you some numbers, right? Our Scope 1 emissions are roughly 0.5 million tonnes. And our Scope 2 emissions, across all of Orbia, right, this is for all of Orbia, 1.5 million tonnes. So from a sustainability standpoint, we have clear line of sight to lowering our impact over the decade. Now having said that, there's a few things important to note. On a weight basis, PVC has 1/2 the carbon footprint of other polymers at end of life. Second, it's immensely recyclable. Third, much of the expansion that we are planning will be based on clean or green energy. The biggest contributor to the carbon footprint of PVC production is the electrolysis of salt where you split the chlorine from the sodium. And if that is based on clean and renewable energy, it massively lowers the carbon footprint. Likewise, the production of ethylene is energy-intensive and requires natural gas and which is, again, one of the long-term strategic reasons why we are investing in a green hydrogen company. And in the long term, we view green hydrogen as a way to decarbonize an ethylene cracker. And so again, we've been very strategic about our view on having a very clean and sustainable PVC value chain. Some of the further solutions that Nick talked about, biologic bio-based PVC options, these are still in our research and development phase, and we have some strong interest from customers in initial applications. But I would say they are much further out.

Thank you. We have another question from Nik. Nik Lippmann from Morgan Stanley.

Again, 2 questions. First to you, Shai. You mentioned R&D being $1.3 billion. Can you talk a little bit about how that is evolving over the time? You said 30% of revenue. It seems very high. Your total SG&A is 1 4. So I was just thinking if you have some of that in CapEx or where I would find it. And also to what degree -- when you think about growth CapEx, is that -- does that -- the $6.5 billion almost $7 billion, do you bake in investment into R&D into that number? And then the second question, quite different question sorry, is on the Scope 3, and thanks for addressing it. And I understand the replacement market for -- and this was I think for Tania and Gregg. I understand the replace market for refrigerator and gases, which is basically what we're talking about there. But we -- but you didn't mention HFO. So there is a technology available. There are certain patents that will go -- just that will basically go off patent over the next couple of years. When you think about the whole purpose and the decarbonization, why not have more of a focus on HFOs?

Why don't you start. So Shai, why don't you address the first question. I wanted to clarify your next question on the vitality index. I think it's helpful to define that clearly so that there's no confusion. And then -- and Nik, I know Gregg's been waiting to answer your question on refrigerants and scope, please. So we're happy to answer that as well.

So Nick just to make sure I understood. You're referring to the 13%...

If I understood you right. So first, our R&D investment is about -- on an annual basis is close to 13%.

No, no, no. No, 13% is our Vitality Index, which is a percentage of new products that were introduced in the last 5 years.

Brilliant. I just got it wrong. So I can -- when we think about R&D investments, I think that would be a great thing for you guys to publish on a quarterly annual basis just for us to follow the investments. And also, I can still beg the question to what degree is there any R&D investment baked into the growth CapEx numbers?

Yes. Okay. Yes. So I think the growth CapEx -- so Nick, R&D investments typically are expensed in the year they are incurred. And so to the extent they will show up in the growth CapEx, they'll show up as investments for scaling and commercializing the technology in terms of the new capacity for those new materials. So hopefully, that -- so you'll see the cost of R&D in the day-to-day expenses that we have, but the capital that we deploy to produce those products, solutions and services will be part of the CapEx.

Maybe to add to that. I think if you look at our financial results, you can collect the total R&D investments from a financial reporting point of view. I think that from an innovation point of view, the investment that we make are much larger than only the R&D expense that we see on the financial results. This does not include application development, our investment in digital transformation, our start-up investment. So none of these are included in the total number of R&D. So if you look at our total innovation investment, it's much, much larger than core R&D as a pure financial KPI. Okay? And we think of it as a much larger investment than just what is reported in our P&L.

Yes. And to answer your second question, Nik, I'll just give a brief background, but Gregg will be happy to share with you our efforts on HFOs and other solutions. If you go back and look at history, Koura was instrumental in the development of hydrofluorocarbons, which helps solve the world's ozone layer problem, okay? And this -- remember the Montreal protocol -- and when ozone was creating a hole in the ozone layer. And the industry rallied and Koura was one of the pioneers in HFCs. But HFCs have a high global warming potential. We fully understand that and we fully support the controlled phase down and replacement of HFCs with alternate solutions with far lower global warming potential. And today, those HFCs contribute significantly to our Scope 3 emissions. And our view is rather than move away from that problem, we want to take that problem hands on and address it and develop new solutions and new products and bring them to market and massively reduce the carbon footprint of our customers. And so that is something we are really excited about and committed to. And Gregg, please share with everyone here, all of the new things we're doing in the next-generation refrigerants, including HFOs.

Yes. Fair. So I think Nik's question was around HFOs specifically. And HFOs are a part of the solution going forward for sure. Two of the new products that we've brought forward, R473A and R456A, which are in the marketplace today, do contain HFO. HFO is a broad term. It refers to what they call hydrofluoroolefin, and the reason why they say that is because it breaks down quickly, so it doesn't stay in the atmosphere and contribute to global warming. We do see it as a part of our solution going forward, both in the short term, the midterm and the long term. In the short term, we have a number of blends, a number of -- specific intellectual property that's been developed by Koura, Mexican. These are useful, and we can clearly show through our own internal testing that you can get the same kind of cooling and heating at a far lower global warming potential. However, it takes time. Customers need to understand the features and the benefits. And we're working day in and day out with our customers to show why this set of solutions has advantage in performance features. Secondly, the midterm and long term, we have another set of solutions that we believe will address the cap and phase-down requirements. If you take today's HFO solutions, and I want to make this very clear for the group, it's not a pure HFO. Most of the solutions in place for the larger parts of the market require a blend. Fluorine is unique material, but it doesn't do all the job by itself and you need to have blends of materials to get the right inlet temperature, outlet temperature and the amount of heat. So going forward, the future systems, the future molecule or blends are going to have to be different than what is being adopted and used today. We're focused on that mid- and long-term piece as well. And we believe that the solutions that we have and are going to bring forward in the form of what we call, and you can see on our web page, the LFR3 materials have that kind of unique feature because they have exceptionally low global warming potential. And they also have excellent energy efficiency because it's not just about the global warming potential of the gas; it's about the overall life cycle, the CO2 emissions from the gas itself and the energy required to make and move that heat. And so we have those sets of solutions. We're working on it. We believe that we have a very good set of alternatives for the marketplace and HFOs will be part -- they are a part of our portfolio today with those products that I mentioned, and they will be an increasing larger part of our portfolio as we go forward.

Thank you, Gregg. Our next question will come from Rodrigo from [ IM Advisors ].

It's a very exciting story and -- but it's a broad story too. So I don't know if we have a plan that for shareholders to keep track of all the exciting things that are happening in each business. There are a lot of them. So how can we keep track of the whole story and I don't know, see the progress in each thing you mentioned?

Rodrigo, that's a great question. And again, today's Investor Day is step one of us doing a better job of communicating to the world who Orbia is, how we create value and applications and how we will evolve going forward. And so we plan to do this not once in 10 years, we'll probably do this quite frequently. And as the company evolves we'll -- and through our periodic disclosures, engage with the investment community to keep them apprised of the development. So absolutely, that's great feedback, and we will do much more going forward to address that.

And just one more question. On the CapEx investments you mentioned, they seem a bit high for the next 5 years if you're only like implying bolt-on investments and organic expansion. So I don't know if you can go further into that on what the investments are there? Or if it implies some M&A bigger than bolt-on investments? Or what's the strategy behind those CapEx numbers you presented?

Yes. We've implied in the numbers around $5.5 billion, $6 billion of investments over the next 5 or 6 years. And a large proportion of those will be to support organic growth. And some of those investments will be directed in getting into adjacent products, adjacent services and may involve bolt-on acquisitions. Now those numbers do not have significant bolt-on acquisitions in them. Some of them are in there. But we are looking at acquisitions in the range of anywhere from $50 million to $500 million, okay? The $500 million one will be rare. The $50 million to $100 million, $200 million acquisition could play an important role in strengthening our position in some of the key markets or adding some technologies to our portfolio. So hopefully, that gives you a sense for that. But all of that cumulatively included will lead to an earnings growth of from $1.9 billion to $3.5 million, $1.8 billion, $1.9 billion to $3.1 billion to $3.5 billion.

Thank you, Sameer. Before we continue, we're going to extend the time for Q&A for 15 minutes. We have a lot of questions going through the webcast, and we might have some others in person. I think Pedro, you have a follow-up question.

Sameer, I wanted to follow up on -- just to confirm the answer you gave to Frank McGann. So is the strategic review of the polymers business, is that off the table?

Yes, it is off the table.

Okay. Perfect. And then my question then is -- and I'm really excited, I'm glad to hear as a target the reduction of carbon emissions. So my question is, how strategic is it for Orbia to be an equity holder in a cracker with Oxy? I mean you could buy VCM, you're the -- you mentioned you're the 6 larger PVC producer, the largest specialty PVC producer. You could procure that VCM and ethylene. You would get that in the market. So especially with this in mind of a target of reducing carbon emissions, all the bad press that major oils are getting where shareholders are really voting to not put CapEx into -- to return capital to shareholders as opposed to investing. Do you need to be invested in a cracker?

So let me answer that question going to the fundamentals, right? Whether we are invested in a cracker or not, the world is still going to need PVC. And so we can technically buy ethylene and not have that footprint on our books. That would be disingenuous. We would rather participate in a cracker and make that cracker green, right? And so I'm happy to share our thinking on the decarbonization of the planet. And we are looking at multiple sectors when you think about decarbonization. The biggest one is power, which has to go renewable, the clean sources of power. The next one is industrial applications, and these include steel, cement, aluminum, and the petrochemical industry. This is best suited for green hydrogen applications, okay? And we've been looking at this space very hard, whether it's green hydrogen or blue hydrogen, both are good solutions. And if you take a long view and see many years out in the future, when there is substantial amount of renewable energy on the grid, the cost of producing green hydrogen will become very competitive and will allow you to decarbonize all of these industries. Okay? And so that's how we are looking at that. The next big sector is transportation, the electrification of transportation, and you heard about how we are participating in the electrification of transportation. And then finally, this is a sector we don't participate in today. It's marine and aviation. And to decarbonize marine and aviation, you would have to take -- capture carbon dioxide, you have to capture the carbon dioxide, combine it with green hydrogen and then you can make a slew of marine and aviation fuels. That's the CO2 refinery concept. And we are developing a very good understanding of all of these spaces. And depending on the very hard look at the business case and whether it makes sense to participate in these areas, we do believe the decarbonization of this planet, as Tania said, is one of the single largest opportunities of our lifetime and one of the single largest responsibilities. So in that context, the world needs clean water and sanitation. We deliver those solutions through resin manufacturer, through the Building & Infrastructure business, and we have a responsibility to decarbonize that value chain, and we will take that challenge head on. So which is the reason why few people choose to enter this industry because they do not want to commit to having clean solutions or renewable solutions from day 1. And if we look at any expansions, we want to strive for maximum clean and green. Infrastructure doesn't exist today. We may not get 100% on day 1, but over time, we absolutely want to go there.

Okay. Now we'll take a question from the webcast. This is [ Carso Basil Zellers ], UBS analyst. Going back where you expect to grow, could you comment further on what is driving the growth above market average? Is it more aggressive pricing, expansion into higher growth regions? And also on market share, if you can comment on current and expected market share for each of your businesses?

So I think the last part of the question is a very detailed one, and we can address that separately and make it available to everybody. The first part of your question, aspiring for growth above market, if you go through each of the segments we participate in, in Polymer Solutions, it's driven by being at the bottom left of the supply curve. If we are able to produce the lowest cost PVC in the world, we'll be the first to sell out. It's driven by growth in high-value products and applications in Specialty Compound geographic growth, particularly for AlphaGary. In Building & Infrastructure, Maarten talked about going into value-added products and solutions. Two of our fastest-growing businesses are strong water management and indoor climate solutions. In Precision Agriculture, I mentioned this before, it's about growing our high-value crops, our extensive crops, services and digital and greenhouses. In data and telecom, it's driven by the massive deployment of fiber around the world. And we are in the right place at the right time with the best possible solutions, ready to address customer needs. So when you combine all of the above, it allows us to have the aspiration of growing faster than market. So hopefully, that addresses your question.

Thank you, Samir. We will take another one from the webcast. This is from Alejandro Zamacona and Frank McGann. They had a very similar question. This is related to lithium-ion batteries, Gregg. So they are asking is there any potential plans for lithium-ion batteries? What is the production stage problems, potential opportunities for Orbia if materialized? And also -- it's for ion battery, sorry. In terms of revenues and EBITDA, how important this is? And today, the automatic refrigerant applications currently as a percentage of revenue and EBITDA, if you could share any color, it would be great. Thank you.

Go ahead.

Thanks. Sure. So let me be clear to start. We're talking about lithium hexafluorophosphate is the current technology that's used by lithium-ion batteries. There is future-future state lithium fluoride ion battery. I only use those words to describe because we talk about the lithium-ion battery without understanding the fact that there's 10% by mass fluorine. So I wanted to just emphasize that. So with respect to the current battery technology, which we believe will be in place for the next decade or more, it will use lithium hexafluorophosphate. This is a product that we have signed a joint venture with Foosung of Korea to establish the first in Europe lithium hexafluorophosphate supply for the localization of the supply chain in Europe. And so this is a significant opportunity for us to grow and participate in this value chain that will -- is growing at 20% per year per year and will likely do so for the next decade as electric vehicles become more ubiquitous and are driven everywhere. So that was the first part of the question. I think the second question was focused on refrigerants.

Automatic refrigerants.

Okay. With automotive refrigerants, this is a sector of a larger refrigerant space. Automotive, typically by volume, is somewhere between, on the total market, 10% to 15% of refrigerants used today. We serve the entire market. I don't think -- we don't disclose specifically our refrigerant sales. But we look at the automotive, both the OEM and aftermarket, as important sectors in the larger refrigerant space, and we are focused on solutions. The one I spoke about was R456A. That is specifically designed for the automotive aftermarket.

Okay. Thank you, Gregg. One more. This is from Andres Cardona from Citi. Business plan has a clear message about the relevance of organic growth, but how to convince investors' community about it. It has been already 4 years since the Netafim acquisition and the market still show concerns about Orbia's M&A DNA. Can you comment on that?

It's a very good question. And I'll point to the track record of success over the last 20 years in terms of doing M&A and integrating these companies and making them successful. And so from that standpoint, it takes time. Successful M&A takes time. We've -- Wavin's been part of the group for over 10 years now and is today getting tremendous momentum. Dura-Line earnings are more than 3x when we acquired Dura-Line. And this was mentioned earlier in the conversation today, Precision Agriculture earnings power of the business is much higher than what it was when we acquired them. So in terms of M&A, Orbia's had a fairly successful track record of integrating the companies and positioning Orbia for where it is headed in the future. Having said that, where we see the biggest opportunities today, they are on the organic side. Okay? And where we can deliver earnings growth at 4x EBITDA versus buying companies for 10 or 12x EBITDA. And that's very compelling. Having said that, we do not rule out M&A. If a very compelling opportunity comes along, and there's a very strong fit with the business and there is tremendous growth and synergies, we'll take a hard look at it, right? And typically, like I said, these will be bolt-ons in the $50 million to $500 million range, with the $500 million being rare and the $50 million being more frequent. But we will absolutely look at that going forward. We don't rule that out. So hopefully, that addresses the question.

Thanks, Sameer. Is there any additional questions from the audience here? Okay. Manuel, from Barclays? And sorry, sorry, this is the last question we'll take for Q&A session. And after this, we'll have lunch. Thank you.

I have a question for the Dura-Line business. You talked mostly about developed markets like North America, Europe. What about Latin America or other emerging regions? What's the plan there?

So basically, today, the technology that we supply to the market is the dominant technology in the developed markets, right? So this is where there is a big demand for such solutions. Emerging markets are just discovering the opportunities around deploying fiber through conduits. And we actually do have presence, commercial presence in many of these markets. Including Latin America, we also have manufacturing presence in Asia, in the Middle East as well as India. So -- and we work very actively together with many of those service providers. Today, I would say this is more of a specialty application in some of those markets. But as time evolves, we actually expect some of those markets to open up in a bigger way, but it may actually take time.

Will these be included in the period until 2025-2027 that you mentioned or?

To some degree, yes. To some degree, yes. But right now, most of the investments that I have described in my presentation, and if you go the industry agreement around this, including 5G and data centers, most of the investments are happening in the developed markets. So in this time frame, the predominant outcome will be derived out of developed markets.

So thank you, everyone. I'm going to hit Sameer for last remarks in just a moment, but just logistics. Lunch is in the St. George room right next door. Everybody has a number written on the back of your name tag, that's your table number for lunch. I think that's it from me. So Sameer, why don't I hand it over to you.

Thank you very much, everyone, and really appreciate for those who made the effort to come here. We are very grateful that you're here to listen to Orbia's story. For those who stayed online for over 4 hours, many thanks. And as I talk to the team members here, for us, this is a very important day where we introduce Orbia to the world. Not many fully appreciate who Orbia is and where it's headed in the future. And this is the beginning of a long journey. I don't call this Investor Day; this is investor year. So we'll be out on the road and would love to engage with the investment community over the next several months, addressing your questions and concerns and setting the stage for a vibrant Orbia going forward. I want to close by thanking members of Orbia's Investor Relations team, the strategy team and the communications team for the outstanding work they've done to pull this event together. And once again, thank you very much. Then I thank our Chairman for joining us today.