2Q19 Earnings Release

AHMSA Announces Second Quarter 2019 Results

Monclova, Coahuila – July 26, 2019 - Altos Hornos de Mexico, S.A.B. de C.V. and Subsidiaries (“AHMSA” or “the

Company”) (BMV: AHMSA) reported financial results for the Second Quarter period ended June 30, 2019 (2Q

2019). Financial and operating figures included in this report are unaudited and are based on AHMSA’s operating

figures and financial statements; they are prepared in accordance with International Financial Reporting Standards

(IFRS) and are expressed in U.S. dollars (US$) and metric tons (MT), unless otherwise indicated.

2Q 2019 Highlights

• Adjusted EBITDA was US$ (55.1) million, a 143.6% decline compared to (US$ 126.1 million) in 2Q 2018.

• Adjusted EBITDA for the Steel Segment was US$ (47.4) million, a 133.1% decline compared to US$ 143.2

million in 2Q 2018. This result was explained by the following:

o Steel shipments were 759 thousand MT, a 22.9% decrease.

o Average price per ton declined by 13.3%, due to unfavorable steel market conditions.

o Net Sales declined by 33%, driven by a lower price environment as well as lower demand for our main

products.

o Cost of sales decreased by 13.5%, due to lower production volumes.

• Adjusted EBITDA for the Steam Coal Segment reported a loss of US$ 4.5 million, compared to a loss of

US$ 13 million in 2Q 2018 due to higher prices given the new CFE contract.

IR Contacts: In Mexico Luis Guillermo Valdés Portales Director of Financial Planning Altos Hornos de México, S.A.B. de C.V. Tel: 52 (866) 649-3366 | plan_financiera@gan.com.mx

In New York Maria Barona i-advize Corporate Communications, Inc. Tel: (212) 406-3691 mbarona@i-advize.com / sglickenhaus@i-advize.com

Corporate Strategy Update

As a result of the severe negative impact on AHMSA caused by the blockage of the Company’s accounts and

contracts throughout the financial system by the Department of the Interior’s Financial Intelligence Unit, the

Company opted to simultaneously implement a savings and efficiency plan, as well as a productive reorganization

plan in line with market conditions, aimed at the optimization of required cash flows.

Within this framework, the Company postponed or cancelled non-priority investments, as well as suspend

operations at some of the subsidiaries that are not related to the main business. On another note, the Company is

implementing cost-savings measures and is in the process of selling properties, airplanes, vehicles and other non

assets that are not essential for the Company’s day-to-day operations.

In parallel, we are working to re-establish financing sources that were interrupted by the blockage of accounts, in

order to better position working capital and continue to carry out the investments necessary to strengthen out cost

competitiveness.

• After certain changes in the scope of the project Artemisa, the Company expects to conclude it at the end of the

fourth quarter of this year, which will allow the Company to generate higher benefits from its iron ore

recovery. The project has partially begun operating and is progressing in accordance to schedule.

• AHMSA continues to develop the necessary infrastructure for the opening of the Conchas Sur mine, which will

allow it to secure its own supply of metallurgical coal and is expected to initiate production operations in the

First Quarter of 2020.

2Q 2019 Earnings Release Page 2

Financial Highlights 2Q 2019 2Q 2018 %Var Steel Segment Sales volume (thousands of MT) Flat products 688,855 899,924 (23.5) Coated products 35,512 37,907 (6.3) Structural shapes 34,790 46,693 (25.5) Steel slabs 48 0 N/A Total volume of shipments 759,205 984,524 (22.9) Average sales price (US$ per MT) 750 865 (13.3) Steel financial highlights (thousands of US$) Net sales 574,801 857,093 (32.9) Cost of sales 596,057 688,692 (13.5) Depreciation 40,166 38,072 5.5 Operating costs 32,842 40,455 (18.8) Operating (loss) profit (94,264) 89,874 (204.9) EBITDA (45,656) 129,954 (135.1) Currency fluctuation (1,765) 13,213 (113.4) Adjusted EBITDA (47,420) 143,167 (133.1) Steam Coal Segment Sales volume (thousands of MT) 1,467 1,485 (1.2) Average sales price (US$ per MT) 56 45 23.9 Steam coal financial highlights (thousands of US$) Net sales 82,220 67,188 22.4 Cost of sales 85,692 83,986 2.0 Depreciation 8,211 8,414 (2.4) Operating costs 2,611 1,636 59.6 Operating (loss) profit (14,293) (26,847) 46.8 EBITDA (4,228) (14,895) 71.6 Currency fluctuation (355) 1,943 (118.3) Adjusted EBITDA (4,583) (12,952) 64.6 2Q 2019 Earnings Release Page 3

Financial Results

Consolidated Results

2Q 2019 2Q 2018 Var % Net Sales (thousands of US$) 674,920 936,855 (28.0) Cost of sales 699,745 786,002 (11.0) Depreciation 49,971 47,933 4.3 SG&A 39,906 46,537 (14.2) Other (income) expenses (465) (110) (322.8) Operating income (114,237) 56,492 (302.2) EBITDA (52,930) 110,967 (147.7) Currency fluctuation (2,119) 15,156 (114.0) Adjusted EBITDA (55,049) 126,123 (143.6) Consolidated net sales for 2Q 2019 were US$ 674.9 million, a 28% decrease compared to 2Q 2018. This result was due to lower sales in the steel sector, which was partially offset by better prices in the Steam Coal Segment. In 2Q 2019, cost of sales totaled US$ 699.7 million, a decrease of US$ 86.3 million (-11%) compared to 2Q 2018. This impact on the cost of sales was primarily due to a decline in the consumption of raw materials, such as coke and minerals, resulting from lower production levels of liquid steel. Selling, general and administrative expenses (SG&A) for 2Q 2019 represented 5.9% of net sales, a decrease of US$ 6.6 million compared to 2Q 2018. This result mainly stemmed from the decrease in extraordinary expenses incurred for professional service fees, publicity, as well as other contracted services. As a result, the Company reported an operating loss of US$ 114.2 million in 2Q 2019, a decrease of US$ 170.7 million compared with an operating gain of US$ 56.5 million reported for 2Q 2018.

2Q 2019 Earnings Release Page 4

Steel Segment

2Q 2019 2Q 2018 Var % Net Sales (thousands of US$) 574,801 857,093 (32.9) Cost of sales 596,057 688,692 (13.5) Depreciation 40,166 38,072 5.5 SG&A 33,275 40,576 (18.0) Other (income) expenses (434) (120) (260.1) Operating income (94,264) 89,874 (204.9) EBITDA (45,656) 129,954 (135.1) Currency fluctuation (1,765) 13,213 (113.4) Adjusted EBITDA (47,420) 143,167 (133.1) Steel segment net sales for 2Q 2019 were US$ 574.8 million, a 32.9% below the figure for 2Q 2018, mainly due to a decline in demand and lower prices in our main products, as result of a severe weakening of the steel market. The average price per tonne of steel decreased for US$115/MT (-13.3%). In 2Q 2019, cost of sales reached US$ 596.1 million, a decline of US$ 92.6 million (-13.5%), compared to 2Q 2018. The impact on cost of sales was primarily due to a decrease in the cost of natural gas and raw materials, such as coke and iron concentrates, as well as lower consumption of these products. Selling, general and administration expenses (SG&A) for 2Q 2019 reached US$ 33.2 million, representing 5.8% of net sales, a decrease of US$ 7.3 million compared to 2Q 2018. This result was mainly due to the decline in extraordinary costs incurred in 2Q 2019 for professional service fees, advertising and other contracted services. As a result of the aforementioned, the steel segment reached an operating loss of US$ 94.3 million in 2Q 2019, a US$ 184.1 million decrease versus the operating income reported for 2Q 2018. As part of the Company’s vertical integration, mineral production for our own internal demand was as follows: Product (in MT) 2Q 2019 2Q 2018 % Var

Iron Ore 788,294 984,034 (19.9)

Metallurgical Coal 260,063 341,730 (23.9)

2Q 2019 Earnings Release Page 5

Steam Coal Segment 2Q 2019 2Q 2018 % Var Net Sales (thousands of US$) 82,220 67,188 22.4 Cost of sales 85,692 83,986 2.0 Depreciation 8,211 8,414 (2.4) SG&A 2,609 1,636 59.5 Other (income) expenses 2 0 N/A Operating income (14,293) (26,847) 46.8 EBITDA (4,228) (14,895) 71.6 Currency fluctuation (355) 1,943 (118.3) Adjusted EBITDA (4,583) (12,952) 64.6

Steam Coal segment net sales for 2Q 2019 were US$ 82.2 million, a 22.4% increase compared to 2Q 2018. This was the result of the new formula for calculating the sale price, which went into effect. This price was able to mitigate the slightly lower steam coal demand by CFE of 18 thousand tons (-1.2%). In 2Q 2019, cost of sales was US$ 85.7 million, an increase of US$ 1.7 million compared to 2Q 2018. The cost of sales impact was mainly due to effects of quality levels and production efficiencies derived from the exploitation of Mine VII. Selling, general and administrative expenses (SG&A) in 2Q 2019 represented 3.2% of net sales, reaching US$ 2.6 million. This represented an increase of US$ 1.0 million compared to 2Q 2018, mainly due to higher professional services fees and costs. As a result of the above, the operating loss for the steam coal segment during 2Q 2019 was US$ 14.3 million, an improvement of US$ 12.6 million compared with the loss registered in 2Q 2018.

2Q 2019 Earnings Release Page 6

Sales Analysis of Steel Segment By Product Type:

By Client Type:

By Market:

2Q 2019 Earnings Release Page 7

Financial Debt As of June 30, 2019, financial debt was US$ 978.6 million, up 2.7% compared to the US$ 952.8 million reported at the close of December 2018. Of this figure, US$ 736.9 million (75%) corresponded to bank debt, US$ 241.7 million (25%) corresponded to financial and capital leases.

• In May 2019, AHMSA obtained a credit line with Cargill Financial Services International, Inc., for a total of US$ 475 million at an annual interest rate of LIBOR + 9%, with maturity in 32 months (prorrogable to additional 30 months). The resources were allocated towards the fulfillment of the Company’s financial obligations to release the suspension of payments.

• In June 2019, Minera del Norte, S.A. de C.V. (“MINOSA”) signed a contract for a simple credit line with Banca Afirme S.A., for a total of US$ 11.7 million, at an annual interest rate of TIIE + 7%, maturing in 30 months. The funds obtained were allocated towards working capital needs.

• In June 2019, MINOSA signed a guaranteed collateral credit line with Almacenadora Afirme S.A. de C.V. for US$ 19.6 million amortizing in 30 months. The funds obtained we used for working capital needs. The interest rate of the loan was TIIE plus 7% annually and was guaranteed with MINOSA equipments.

• In June 2019, MINOSA disbursed US$ 13.5 million from its financial leasing line with Caterpillar Crédito S.A. de C.V. (“Caterpillar”), for the acquisition of mining equipment, for a 5-year term and an annual interest rate of 7.95%.

• In June 2019, MINOSA used its credit line with Caterpillar for a total of US$ 8.2 million, at an annual interest rate of 6.75%, maturing in one year. The proceeds were used for working capital.

• In May 2019, Dos Republicas Coal Partnership obtained a credit line with International Bank of Commerce, for a total of US$ 3 million, at an annual interest rate of the Prime Rate plus 1.5% annual, maturing in 60 months. The proceeds were used for the purchase of mining equipment.

• In May 2019, Corporativo Ansat, S.A. de C.V. disbursed US$ 0.07 million from a financial leasing line with Toyota Financial Services México, S.A. de C.V., for the purchase of vehicles, for a 4-year term and a 12.42% annual interest rate.

Financial Debt Profile

2Q 2019 Earnings Release Page 8

CAPEX Capital Expenditures for the Second Quarter of 2019 were US$ 35.8 million (-32.7%). This figure includes the application of results from mining exploration expenses incurred to date. The main investments carried out during this period included those for the modernization and optimization processes, as well as technological updates and development of mines.

2Q19 Shareholder Composition

Shareholder # of Shares % Ownership Grupo Acerero del Norte 302,325,250 64% Board & Management 14,401,883 3% Float 154,750,627 33%

About AHMSA AHMSA is the largest steel producer in Mexico. The Company was founded in 1942 and began operations in 1944. In December 1991, the Company was privatized and Grupo Acerero del Norte, S.A. de C.V. (GAN) assumed control. In December 1995, GAN incorporated into AHMSA the iron ore and coal mines to convert AHMSA into an integrated steel producer in Mexico with a nominal capacity of 3.8 million MT of liquid steel per year. Since 2007, it has managed the Fénix Project, the most ambitious investment program in the Company’s history aimed at increasing installed capacity by at least 40% and enabling AHMSA to surpass 5 million MT of liquid steel per year following the incorporation of its new electric arc furnace. With this new equipment, AHMSA also expanded its ranges of steel and increased specifications, which allows the Company to enter new market niches. In 2018, AHMSA held 13% share of the domestic steel market, 24% of the domestic market for flat products and 12% of exports from Mexico of finished steel products. The corporate headquarters and steel mills have an area of approximately 1,200 hectares and is located in Monclova, Coahuila de Zaragoza, 248 km from the U.S. border. Forward-looking statements: The information set forth in this presentation contains “forward-looking statements” within the meaning of applicable Mexican securities legislation and the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking statements") including but not limited to projections of revenues or losses, plans and objectives for future operations, products or services, and statements relating to future economic performance. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause AHMSA’s actual results to differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include but are not limited to regional, national or global economic, business, market and regulatory conditions and the following: (i) AHMSA’s ability to service its debt, including the outstanding non-transferable rights of each recognized creditor in the suspension of payments proceeding to receive certain payments; (ii) competition and loss of market shares; (iii) changes in AHMSA’s relationships with customers and suppliers; (iv) increases in raw material costs or interruptions in supply; (v) declines in, and volatility affecting, global prices of steel; (vi) the existence or termination of free trade agreements, such as the North American Free Trade Agreement; (vii) foreign currency exchange fluctuations; (viii) the inherently dangerous nature of mining; (ix) work stoppages, strikes or other labor disputes; (x) changes in Mexican economic policy, as well as currency instability; (xi) inaccuracies in AHMSA’s estimates of economically recoverable coal reserves; and (xii) AHMSA’s dependence on certain raw materials. The financial and operating projections, as well as estimates of assets, are based solely on the assumptions developed by AHMSA that it believes are reasonable based upon information available to AHMSA as of the date hereof. All projections and estimates are subject to material uncertainties, and should not be viewed as a prediction or an assurance of actual future performance. The validity and accuracy of AHMSA’s projections will depend upon unpredictable future events, many of which are beyond AHMSA’s control and, accordingly, no assurance can be given that AHMSA’s assumptions will prove true or that its projected results will be achieved. Non-GAAP Financial Measures: This presentation provides information regarding EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are not recognized terms or measures of financial performance under U.S. GAAP or IFRS and do not purport to be and should not be considered as alternatives to net income, as determined on a consolidated basis in accordance with IFRS, as indicators of AHMSA's operating performance or as net resources generated by operating activities as a measure of AHMSA's liquidity. AHMSA includes EBITDA and Adjusted EBITDA because it believes that they enhance the understanding of AHMSA's financial performance and its ability to satisfy principal and interest obligations with respect to its indebtedness as well as to fund capital expenditures and working capital requirements. Exchange Rate disclaimer This document includes certain exchange rate conversions from Mexican Pesos to U.S. Dollars, only for convenience of the user. The exchange rate used for the purposes of this translation is, for accounts related to the Income or Cash Flow statements, the average of the Official Exchange Rates published by Banco de Mexico each day during the months and the years ended, and the last day of each period for accounts related to the Balance Sheet. 2Q 2019 Earnings Release Page 9

Balance Sheet (thousands of US$)

June 2019 December 2018 ASSETS Cash and cash equivalents 31,600 19,768 Restricted cash 196,137 0 Clients, net 235,405 282,232 Due from related parties, net 15,338 14,570 Other accounts receivable, net 100,799 82,313 Inventories, net 413,674 478,929 Prepaid expenses 16,085 6,499

Total Current Assets 1,009,036 884,311 Due from related parties, net 25,370 24,722 Other accounts receivable, net 2,947 2,784 Guaranty deposits 62,439 54,302 Investments in shares of associates or joint ventures 4,540 5,320 Property, plant and equipment, net 2,128,819 2,114,383 Intangible assets, net 153,291 159,435 Other assets, net 82,201 48,165 Total Non-Current Assets 2,459,608 2,409,111

TOTAL ASSETS 3,468,644 3,293,422

LIABILITIES Financial liabilities 218,969 180,479 Suppliers 601,982 533,724 Taxes payable 58,896 59,803 Due to related parties 20,749 25,075 Liabilities from SP Restructuring 190,800 419,669 Advances from customers 76,383 77,859 Other payables and provisions 147,917 127,405 Total Current Liabilities 1,315,696 1,424,014 Financial liabilities 774,919 352,663 Liabilities from SP restructure 0 0 Employee retirement obligations 396,604 363,894 Other payables and provisions 17,532 13,954 Deferred income taxes 108,670 158,259 Total long-term liabilities 1,297,725 888,769

TOTAL LIABILITIES 2,613,421 2,312,784

SHAREHOLDERS’ EQUITY Capital stock 711,839 693,235 Retained earnings 104,326 245,114 Other comprehensive income concepts 3,742 9,152 Total controlling interest 819,907 947,502

Non-controlling interest 35,316 33,137 TOTAL SHAREHOLDERS’ EQUITY 855,223 980,639 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 3,468,644 3,293,422

2Q 2019 Earnings Release Page 10

Income Statement (thousands of US$)

2Q 2019 2Q 2018 Net Sales 674,920 936,855 Cost of Sales 749,716 833,936

GROSS PROFIT (LOSS) (74,796) 102,919 Selling, general and administrative expenses 39,906 46,537 Other Expenses, net (465) (110)

OPERATING INCOME (LOSS) (114,237) 56,492 Financial Expenses 36,738 23,973 Financial Products (3,975) (2,135) Currency Fluctuation (94) 22,301 Investments in shares of associates or joint ventures (377) (136)

INCOME (LOSS) BEFORE INCOME TAXES (146,530) 12,490 Income Taxes (35,921) 458

INCOME (LOSS) FOR THE PERIOD (110,609) 12,032 EBITDA (52,930) 110,967

2Q 2019 Earnings Release Page 11

Statement of Cash Flow (thousands of US$)

Jan-Jun 2019 Jan-Jun 2018 Profit (loss) net (199,882) 23,285 Depreciation and amortization 113,717 110,780 Equity in income of associated and joint ventures (640) (545) Impairment of assets 0 1,152 Loss on sales of property, plant and equipment, net (68) 51 Income from sale of shares 0 0 Interest income (5,846) (3,073) Currency fluctuation, Profit (loss) 63,646 46,133 Interest expense (1,465) 9,668

(30,538) 187,451 Trade accounts receivable, net 57,208 (99,156) Due from related parties, net (376) (4,125) Other short and long-term accounts receivable, net (4,151) (6,505) Inventories, net 77,218 (104,032) Advance payments (11,156) (1,302) Suppliers 57,567 138,697 Taxes payable (3,736) (11,232) Due to related parties (4,656) 1,927 Other payables and provisions 37,465 82,128 Advances from customers (3,795) (23,149) Employee retirement obligations, net (6,488) (11,880) Other long term payables and provisions 0 (34,311) Income tax (paid) recovered (11,898) (15,310) Interest expenses paid (8,532) (9,428) Interest income received 3,076 2,044

177,747 (95,635) Net cash flow provided by operating activities 147,209 91,816 Additions to property, plant and equipment (35,802) (53,223) Cash provided by sales of property, plant and equipment 47 114 Dividend from associated company 1,565 0 Investment in shares of associated companies (3) (3) Accounts receivable from sale of shares 782 787 Guaranty deposits (6,679) (24,344) Interest received 2,770 1,046 Restricted cash (196,097) 0 Other assets 79 (2,936) Purchase of equity of Non controlling interest 0 0 Intangible assets (7,628) (8,109) Net cash flow from financing activities (240,965) (86,668) Financing debt 499,688 69,112 Financial debt paid (77,380) (111,571) Payment released of lifting of Suspension of Payments (272,845) 0 Interest paid (38,638) (21,650) Net cash flow from financing activities 110,826 (64,109) Increase (decrease) in cash and cash equivalents 17,070 (58,961) Adjustments to cash flow due to exchange rate fluctuations (5,238) 146 Beginning of year 19,768 84,976 End of period 31,600 26,161 2Q 2019 Earnings Release Page 12

Balance Sheet (thousands of Ps$)

June 2019 December 2018 ASSETS Cash and cash equivalents 605,723 389,094 Restricted cash 3,759,644 0 Clients, net 4,512,359 5,555,137 Due from related parties, net 294,002 286,787 Other accounts receivable, net 1,932,159 1,620,153 Inventories, net 7,929,509 9,426,710 Prepaid expenses 308,319 127,927

Total Current Assets 19,341,714 17,405,808 Due from related parties, net 486,304 486,595 Other accounts receivable, net 56,494 54,806 Guaranty deposits 1,196,868 1,068,815 Investments in shares of associates or joint ventures 87,031 104,717 Property, plant and equipment, net 40,806,265 41,617,198 Intangible assets, net 2,938,355 3,138,142 Other assets, net 1,575,671 948,020 Total Non-Current Assets 47,146,988 47,418,293

TOTAL ASSETS 66,488,702 64,824,100

LIABILITIES Financial liabilities 4,197,313 3,552,358 Suppliers 11,539,092 10,505,235 Taxes payable 1,128,951 1,177,103 Due to related parties 397,719 493,549 Liabilities from SP Restructuring 3,657,356 8,260,310 Due to related parties 1,464,145 1,532,490 Other payables and provisions 2,835,349 2,507,690 Total Current Liabilities 25,219,924 28,028,735 Financial liabilities 14,854,043 6,941,438 Liabilities from SP restructure 0 0 Employee retirement obligations 7,602,303 7,162,481 Other payables and provisions 336,061 274,648 Deferred income taxes 2,083,035 3,114,989 Total long-term liabilities 24,875,441 17,493,556

TOTAL LIABILITIES 50,095,365 45,522,291

SHAREHOLDERS’ EQUITY Capital stock 13,644,882 13,644,882 Retained earnings 1,999,778 4,824,556 Other comprehensive income concepts 71,720 180,141 Total controlling interest 15,716,380 18,649,579

Non-controlling interest 676,957 652,231 TOTAL SHAREHOLDERS’ EQUITY 16,393,337 19,301,810 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 66,488,702 64,824,100

2Q 2019 Earnings Release Page 13

Income Statement (thousands of Ps$)

2Q 2019 2Q 2018 Net Sales 12,904,014 18,136,796 Cost of Sales 14,338,667 16,142,366

GROSS PROFIT (LOSS) (1,434,653) 1,994,429 Selling, general and administrative expenses 763,351 903,523 Other Expenses, net (8,889) (2,150)

OPERATING INCOME (LOSS) (2,189,114) 1,093,057 Financial Expenses 703,425 463,362 Financial Products (76,122) (41,253) Currency Fluctuation (1,718) 429,130 Investments in shares of associates or joint ventures (7,200) (2,709)

INCOME (LOSS) BEFORE INCOME TAXES (2,807,499) 244,526 Income Taxes (688,080) 14,290

INCOME (LOSS) FOR THE PERIOD (2,119,418) 230,237 EBITDA (1,015,504) 2,146,834

2Q 2019 Earnings Release Page 14

Statement of Cash Flow (thousands of PS$)

Jan-Jun 2019 Jan-Jun 2018 Profit (loss) net (3,832,228) 449,426 Depreciation and amortization 2,180,186 2,111,049 Equity in income of associated and joint ventures (12,258) (10,381) Impairment of assets 0 20,489 Loss on sales of property, plant and equipment, net (895) 974 Income from sale of shares 0 0 Interest income (112,094) (58,916) Currency fluctuation, Profit (loss) 1,220,845 878,259 Interest expense (28,086) 189,763

(584,530) 3,580,663 Trade accounts receivable, net 1,096,825 (1,890,438) Due from related parties, net (7,215) (78,617) Other short and long-term accounts receivable, net (79,594) (124,053) Inventories, net 1,480,458 (1,983,400) Advance payments (213,892) (24,822) Suppliers 1,103,705 2,644,298 Taxes payable (71,620) (214,146) Due to related parties (89,274) 36,733 Other payables and provisions 718,305 1,565,795 Advances from customers (72,754) (441,342) Employee retirement obligations, net (124,395) (226,501) Other long term payables and provisions 0 (654,144) Income tax (paid) recovered (228,105) (291,894) Interest expenses paid (163,581) (179,741) Interest income received 58,981 38,968

3,407,844 (1,823,304) Net cash flow provided by operating activities 2,823,314 1,757,359 Additions to property, plant and equipment (686,403) (1,014,714) Cash provided by sales of property, plant and equipment 895 2,174 Dividend from associated company 30,009 0 Investment in shares of associated companies (65) (63) Accounts receivable from sale of shares 15,000 15,000 Guaranty deposits (128,053) (464,121) Interest received 53,113 19,948 Restricted cash (3,759,644) 0 Other assets 1,515 (55,985) Purchase of equity of Non controlling interest 0 0 Intangible assets (146,252) (154,593) Net cash flow from financing activities (4,619,885) (1,652,354) Financing debt 9,580,236 1,226,707 Financial debt paid (1,483,558) (2,036,200) Payment released of lifting of Suspension of Payments (5,231,106) 0 Interest paid (740,778) (412,754) Net cash flow from financing activities 2,124,794 (1,222,247) Increase (decrease) in cash and cash equivalents 328,223 (1,117,242) Adjustments to cash flow due to exchange rate fluctuations (111,594) (40,152) Beginning of year 389,094 1,677,039 End of period 605,723 519,645

2Q 2019 Earnings Release Page 15