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This presentation contains forward-looking information based on numerousvariables and assumptions that are inherently uncertain. They involvejudgments with respect to, among other things, future economic, competitiveand financial market conditions and future business decisions, all of which aredifficult or impossible to predict accurately. Accordingly, results are likely tovary from those set forth in this presentation. Copyright © 2016 ALFA, S.A.B.de C.V. All rights reserved. Reproduction and distribution is forbidden withoutthe prior written consent of ALFA, S.A.B. de C.V.
CORPORATEPRESENTATION
May, 2016
ALFA participates in key areas of the economy
2015 Results Guidance 2016
Revenues (U.S. $ Billions) $16.3 $15.8
EBITDA (U.S. $ Billions) $2.4 $2.2
Capex (U.S. $ Millions) $1,606* $1,220
Net Debt/EBITDA 2.0 times 2.4 times
Interest Coverage 7.7 times 7.3 times
* Including acquisitions
2
REFRIGERATED FOODS PETROCHEMICALS ALUMINUM AUTO PARTS IT + TELECOM HYDROCARBONS
1 Includes Alestra’s revenues and EBITDA only. Alestra was merged with Axtel on February 15th, 2016.
ALPEK
NEMAK
AXTEL 1
NEWPEK
SIGMA
Breakdown by Business Group
3
REVENUES 2015(U.S. $16.3 BillIon) (%)
12
28
33
36
EBITDA 2015(U.S. $2.4 Billion) (%)
37
30
25
35
Ownership
4
1: Alpek is a public company since April 2012. 2: Nemak is a public company since July 2015. Ford Motor Co. owns 5.4%.3: Axtel is a a public company since 2005. ALFA owns 51% of the shares since February 15th, 2016.
82%1 75%2 100%51%3100%
Global footprint
5
More than78,000
employess
ProductionFacilities in
26 countries
~66% ofsales outside
Mexico
Focusedon long-term value creation
6
0.8 0.81.0 1.0 1.1
1.31.7 1.9 1.9 2.0
2.4
05 06 07 08 09 10 11 12 13 14 15
6.26.9
9.610.6
8.5
10.8
14.715.215.9
17.2
16.3
05 06 07 08 09 10 11 12 13 14 15
REVENUES(U.S. $ BillIon)
EBITDA(U.S. $ Billion)
Multinational food company dedicated to bringing local favorite foods to communities everywhere
2015 Revenues of U.S. $5.9 billion
EBITDA of U.S. $876 million in 2015
8
Highly recognized branded foods in Mexico, U.S., Central & South America and Europe
Broad geographic footprint
66 production plantsin 17 countries
Offers quality food at a wide range of price points and across diverse categories
9
Meats 62%
Dairy 18%
Dry Meats 16%
Other Categories 4%Region% Sales
US15%
Mexico43%
Europe36%
LATAM6%
Diversified and strong brand portfolio in each market
MEXICO EUROPE U.S.A. LATAM
PackagedMeats
Dairy
Other
Third Party
10
Broad supply chain network
Reach, service, efficiency and knowledge
Global processes
Benchmarks
Best practice implementation
Production sharing capabilities
Safety & quality throughout the supply chain
Sourcing development programs and certifications
In-store quality checks
Customer development programs
Certified facilities
11
66PRODUCTION PLANTS 24 Europe 12 LatAm 24 Mexico 6 US
177DISTRIBUTION CENTERS 9 Europe 34 LatAm 115 Mexico 13 US
+500,000POINTS OF SALE 47,000 Europe 60,000 LatAm 360,000 Mexico 42,000 US
Product & Process Innovation
12
Consumer-driven innovation
Extensive consumer research
Proprietary mathematical models
Sigma Innovation System
State-of-the-Art Research & Development center
With +170 specialists
Leadership in food process technology
R&D Alliances
Research agreements with educational and governmental institutions
Open technology
One of the world’s largest integrated polyester groups
2015 Revenues of U.S. $5.3 billion
2015 EBITDA of U.S. $631 million
Production facilities in key geographic areas:
North America: the biggest market for beverages
Availability of low-cost raw materials
Logistics
14
Business Segments
15
Polyester chain Plastics & chemicals
2015Revenues
U.S. $3.8 billion (73%)EBITDA
U.S. $344 million (55%)
2015Revenues
U.S. $1.4 billion (27%)EBITDA
U.S. $284 million (45%)
ProductsPTAPETPolyester Fibers
ProductsPPEPSCPLFertilizers and other chemicals
VOLUME BY END MARKET 2015(3,937 Kta)
Construction
3%Textiles
7%
CosnumerGoods
32%
Food andBeverages
58%
Asia & Others
1%Europe
3%
LatAm
14%
Mexico
37%
USA &Canada
45%
Alpek´s products are widely used for food packaging and consumer end-markets
SAMPLE END USERS BY INDUSTRY
BEVERAGE FOOD PERSONAL CARE TEXTILES
16
SALES GEOGRAPHY 2015
Alpek’s installed capacity amounts to 5.5 million tons; 21 production facilities and ~5,000 employees
Installed Capacity Breakdown (Kta)
SITE PTA PET rPET FIBERS PP EPS CPL OTHER
Mexico(2,950
Kta)
A Monterrey 160
B Altamira 1,000 640 165
C Salamanca 85
D Ocotlán 10
E Cosoleacaque 610 180
F Lerma 100
USA(2,270
Kta)
G Cedar Creek 170
H Cooper River 170 135
I Columbia 640 725
J Pearl River 430
Argentina(225 kta)
K Zárate 190
L Pacheco 16
M General Lagos 19
Brazil N Guaratingueta 46
Chile(7 Kta)
O Santiago 5
P Puerto Montt 2
Total Capacity: 5,498 Kta 2,250 1,865 16 295 640 230 85 117
17
Location of Production Sites
Corpus Christi(2016)PTA: 336 k tonsPET: 400 k tons
Source: Alpek estimatesKta: Thousand tons per year(1) Includes industrial and specialty chemicals and recycled PET capacities
The largest provider of key lightweightingsolutions for the automotive industry
2015 Revenues of U.S. $4.5 billion
2015 EBITDA of U.S. $759 million
One out of every four new vehicles sold worldwide has a Nemak component
Global footprint, cost competitiveness, R&D, skilled labor force
19
Focused on complex aluminum components for the automotive industry
20
Complex CastingsEngine & Transmission “Powertrain”
Cylinder Head Increased mechanical properties, Complex designs, integrated manifold
Engine BlocksOEMs starting to switch diesel blocks to aluminum and accelerating replacement of remaining cast iron blocks in gasoline engines
Transmissions Shift to complex automatic transmissions and increasing number of gear
A portfolio of 50+ customers, supplying more than 650 different platforms
Nemak supplies engine & transmission components for ~650 out of 1,200 vehicle platforms worldwide
21Source: HIS Automotive and Nemak research
Solid customer relationships; diversified revenue stream
22
2015 Revenue Distribution By Region
Row
8%
Europe
31% North America
61%
2015 Volume DistributionBy
13%NA
18%
NA
24%
OTHERS
7%
1%
1%
1%
1%
1%
1%
SA
SA
2%
3%
3%
3%
5%
4%
5%
6% EUROPE
Modern facilities with a global footprint near key customers
Global footprint serving all major markets
35 manufacturing facilities strategically located close to customer sites
North America (17), Europe (12), South America (3), Asia (3)
23
India China
Russia(1)
PolandSlovakia
Spain Germany
Austria CzechRepublic
Hungary
Canada
United States
Mexico
Brazil
Argentina
(1) Fully operational by year end 2015
Aluminum components expected to grow due to stricter environmental standards
24
NA and EU LV Aluminum Content(Pounds Per Vehicle)
52 53 54 55 55 57
51 55 60 65 71 79 45 47 49 51 53
57 55 58 61 64 67 71 31 33 34
35 37 39
43 46
50 54
58 64
33 43
57
85
2012
324
2015e
350
301
2009
24
2018e
426
2021e
475
2025e
380StructuralComponents
Others
Heat Transfers
Wheels & Brakes
Transmissions
Engine Blocks
Cylinder Heads
Source: Ducker, Nemak research
109
IT and Communication services for the enterprise, government and residential markets
Main Services
Data centers
Information security
Managed networks
Consultancy services
Systems integration
Cloud services
Internet
Pay-TV
26
Diversified revenue stream; focused on the enterprise market
2015 Revenues ofU.S. $1.0 Billion (proforma)
2015 EBITDA of U.S. $369 million (proforma)
27* 2015 Proforma as if Alestra/Axtel merger would have taken place in 2015
SALES BREAKDOWN*By type of service
10%Wireless
10%FTTH
13%IT
67%Telecomm
BY MARKET SEGMENT
20%Mass Mkt
80%Enterprise & Govt.
Strategic evolution
28
MERGER 2016
• Vertical markets• Cloud services• App management• Data center
TELECOM / IT CONVERGENCE• Value added services mass market– Wimax
• Enterprise integration Telco / IT• FTH 2011
2008
• Enterprise strategy• Value added services – Data IP
IP PROTOCOL, INTERNET BUBBLE
2000
• Start up LD services
TELECOMM MARKET OPENED
• Start up local mass market«Fixed Wireless»
1997
1999
ALESTRA CONVERGENCE• Unified communications• Managed networks• Security
VOICE AND DATA NET CONVERGENCE LAN/WAN
• Avantel acquisition (´06)• Broad band mass market
2011
2008
• Large Scale Solutions• Systems integration• Data center
DATA CENTER CONVERGENCE
• IPTV (´13)• Cloud services & managed IT
20152015
Infrastructure provides access to +90% of Mexican market
29
Almost 39,000 km. of long-haul fiber optics,
5,600 km. of metro rings
Six data centers
6,750 m2
FTTH in major cities
- 53 cities with data services
- 39 cities with local services
- 10 cities with FTTH
E&P operations in the U.S. and Mexico
Involvement in the E&P industry began in 2006
JV with Pioneer
Development of Eagle Ford Shale
Operating mature fields in Mexico since 2013
Service contracts with Pemex (CIEPs)
31
Current U.S. Operations
Talent
Team of experience people in the US.
World-class partners (e.g. Pioneer Natural Resources)
Technology
Fracking for horizontal drilling in Eagle Ford
Mature fields optimization
World-class sub-surface analysis capabilities
Successful transition to operations
Experienced transition to operations
Developing over 400,000 acres
32
Newpek fields
KS
TX
OK
CO
Eagle Ford
3 14 7 830
6691
116
40
'07 '08 '09 '10 '11 '12 '13 14 15
0.3 0.9 1.1 12.7
4.76.4
8.2 8.3
'07 '08 '09 '10 '11 '12 '13 '14 15
Net Production (mboed)
EBITDA (US$ mm)
Activities in Mexico
• Producing over 5.5 mboed
• Optimization of existing wells
• Development of new wells in conventional formations
• Migrating existing CIEPs to the new Exploration and Production Contracts (CEEs)
33
Current environment
• Oil price environment impacting Newpek
• Stop drilling at EFS
• Other projects in the U.S. on hold
• Scaling down in Mx
• Still interested in the energy sector
34
Guidance 2016
35
(U.S.$ Millions) REVENUES EBITDA CAPEX
2015 2016e % 2015Ext.
ItemsAdj.
20151 2016e % 20152 2016e
ALFA 16,315 16,252 0 2,420 210 2,210 2,342 6 1,606 1,435
Sigma 5,901 5,900 0 869 161 708 680 (4) 660 360
Alpek 5,284 4,800 (9) 630 26 604 630 4 317 320
Nemak 4,482 4,500 0 759 - 759 777 2 460 495
Axtel3 389 857 120 166 23 143 305 114 101 224
Newpek 89 57 (36) 40 - 40 10 (75) 59 30
Assumptions:Mx GDP growth: 2.4% USA GDP growth: 2.5% Avg. exchange rate Mx Peso to US$: $18.0 Avg. exchange rate Euro to US$: $1.07 Avg. oil price (Brent): US$38/barrel
1 2015 EBITDA has been normalized to account for one-time items2 Including acquisitions3 2015 figures include Alestra only; 2016 incorporates Axtel after merger date (February 15)
Note: Guidance as of April 15, 2016