This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain. They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future business decisions, all of which are difficult or impossible to predict accurately. Accordingly, results are likely to vary from those set forth in this presentation. Copyright © 2015 ALFA, S.A.B. de C.V. All rights reserved. Reproduction and distribution is forbidden without the prior written consent of ALFA, S.A.B. de C.V.
CORPORATE
PRESENTATION
Update: August 3rd, 2015
Established in
1974 — Roots go back to XIX century
2
2014 Results
Revenues (U.S. $ Billions) $17.2
EBITDA (U.S. $ Billions) $2.0
Capex (U.S. $ Millions) $1,426*
Net Debt/EBITDA 2.5 times
Interest Coverage 6.0 times
* Including acquisitions
ALFA participates
in key areas of the economy
3
434
636
714
170 120 21%
34%
31%
8% 6%
6.5
5.4
4.6
0.4 0.2
38%
27%
32%
2% 1%
REVENUES 2014 (U.S. $ 17.2 BillIon)
EBITDA 2014 (U.S. $ 2.0 Billion)
NEWPEK Hydrocarbons
NEMAK Aluminum Auto Parts
ALESTRA IT + Telecom
ALPEK Petrochemicals
BREAKDOWN BY BUSINESS GROUP
SIGMA Refrigerated Foods
Ownership
4
1: Alpek is a public company since April 2012. Market float is 18% 2: Nemak is a public company since July 2015. Ford Motor Co. owns 5.4% of Nemak and market float is 19.3%.
82%1 75%2
100% 100% 100%
Global footprint
5 5
Production facilities in 25 countries
~65% of sales outside Mexico
More than 70,000 employees
Focused on long-term value creation
6
0.6 0.8 0.8
1.0 1.0 1.1 1.3
1.7 1.9 1.9 2.0
04 05 06 07 08 09 10 11 12 13 14
5.1 6.2
6.9
9.6 10.6
8.5
10.8
14.7 15.2 15.9 17.2
04 05 06 07 08 09 10 11 12 13 14
EBITDA (U.S. $ Billions)
Revenues (U.S. $ Billions)
7
One of the world’s largest integrated
polyester groups
8
• 2014 Revenues of
U.S. $6,470 million
• Production facilities in key geographic areas:
– North America: the biggest market for beverages
– Availability of low-cost raw materials
– Logistics
Cedar Creek, N.C. Cooper River, S.C. Columbia, S.C. Pearl River, MS
Monterrey, N.L. Altamira, Tamps. Salamanca, Gto. Ocotlan, Jalisco
Lerma, Edo. Mexico Cosoleacaque, Ver.
Pacheco, Arg. General Lagos, Arg. Zarate, Arg.
Guaratingueta, Bra.
Santiago, Chile Puerto Montt, Chile
PP
EPS
Business Segments
Polyester Chain
Plastics and Chemicals
PTA
PET
Polyester Fibers
CPL
Fertilizers and others chemicals
PRODUCTS SAMPLE OF END-USES
9
2014 Revenues
U.S. $4,752 Million
(73%)
2014 EBITDA
U.S. $270 Million
(63%)
2014 Revenues
U.S. $1,719 Million
(27%)
2014 EBITDA
U.S. $159 Million
(37%)
Enhancing
competitiveness MAIN INVESTMENT PROJECTS
U.S. $100-300
million
U.S. $50-100
million
FEASIBILITY ANALYSIS
INVESTMENT COMPLETION
Integrated MEG plant (US$1 billion)
Cogen Altamira (US$250 million)
PTA/PET site in Texas
(US$350 million)
1
3 2
Amount of investment within parenthesis; estimated annual savings in blue area
10
Strategic Guidelines
• Capture natural gas, ethane and propane advantage in North America
• Maximize operating efficiency
• Pursue Integrex licensing / JV
11 11
The largest producer
of aluminum cylinder heads and engine blocks in the world
• 2014 Revenues of U.S. $4,645 million
• One out of every four new
vehicles sold worldwide has a Nemak component
• Public company since July 2015
12
A portfolio of 50
customers, supplying
more than 650
different platforms
13
Aluminum structural components
penetration
14
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
380 Structural Components
Others
Heat Transfers
Wheels & Brakes
Transmissions
Engine Blocks
Cylinder Heads
Source: Ducker, Nemak research
109
15
A leading player in the refrigerated food market
16
• 2014 Revenues of U.S.
$5,359 million
• More than 1.4 million tons/yr, or 4,000+ per
day
• Presence in Mexico, the U.S. Central & South America and Europe
• Acquired the remaining shares of Campofrio from WH Group.
Presence in
18 countries
Creating an
enhanced global platform
17
55%
17%
19%
9%
Chilled Processed Meats Dairy Dry Meats Other
41%
15%
39%
5%
18 countries (Americas & Western Europe) Geographic footprint
Product portfolio Dry & Cooked Processed Meats, Dairy, Yogurt, Ready meals, Others
Positioning Leadership in Mexico, US value segment & Western
Europe
Revenue 2014
Geography
Segment 55%
17%
19%
9%
Mexico U.S. Europe Other
One of the most efficient distribution
networks in Mexico
• 136 distribution
centers; 3,900 delivery routes
• +4,000 refrigerated
vehicles
• Reaching more than
450,000 POS
18
19
Strategic
evolution
20
ALESTRATELECOM • Mass Market • LD Services
• Enterprise market • Value added services • Internet bubble
• IP as standard • Telecom / Informatics • WAN / LAN • Data Centers • Managed Services • Security Operation
Center
• Vertical Markets • Cloud services • Management
applications (ERP,CRM) • Fixed/Mobile
applications
ALESTRAIP
ALESTRACONVERGENCE
ALESTRACLOUD&MOBILE
• Managed applications
• Governance and compliance in IT
• Business Process Outsourcing
• Integral operation of critical mission
ALESTRAIT
Leader in the value-added IT + Telecom
services for enterprises in Mexico
21
• 2014e Revenues of
U.S. $415 million
• Value Added Services (VAS) for the enterprise market
• IT Managed Services Security, Data Centers, Cloud Services, VPNs, Internet
Enterprise LD MN & IT Enterprise
Data, internet and local
Sales breakdown By type of service
50 %
Consumer & Intl 5%
14% 31%
Residential International
Enterprise
By Market Segment
95%
2% 3%
Infrastructure provides
access to +90% of
Mexican market
22
• 20,520 kms. of long-haul fiber optics, plus 3,500 kms. of metro rings in 16 cities
• 50 cities with Data & IT services
• Acquisition of G-TEL to reinforce coverage NW and SE regions
• New Data Center in Queretaro
Alestra´s Network
Corporate headquarters
International Border Crossing Data Centers
23
Newpek: U.S.
Operations began in 2006
Value drivers
Newpek fields
KS
TX
OK
CO
Current U.S. Operations
Eagle Ford
EBITDA (US$ mm)
Net Production (mboed)
3 14 7 8 30
66 91
116
'07 '08 '09 '10 '11 '12 '13 14
0.3 0.9 1.1 1 2.7
4.7 6.4
8.2
'07 '08 '09 '10 '11 '12 '13 '14
Talent • Team of 28 experienced 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 in exploration and operations through past
acquisitions • Developing over 400,000 acres
E&P • JV 50/50 with MPG (Grupo ACS) • Producing over 5.5 mboed • Optimization of existing wells (workovers) • Development of new wells in conventional formations • Migrating existing CIEPs to the new Exploration and Production
Contracts (CEEs)
Services • JV 50/50 with Petrofac • Services: Onshore / offshore drilling, workovers, well testing,
O&M and equipment rentals
Activities in Mexico began in 2013
Current operations Focus
Services
Operation (CIEPs)
Prepared to capture energy reform opportunities in Mexico
Alfa’s Energy History
Areas of Interest Attractive Opportunities
Exploration and Production of Hydrocarbons (E&P)
Midstream / Downstream
Power
1
2
3
23.0 mmmboe of 2P reserves 112.8 mmmboe of prospective resource Expected 5.4% CAGR in O&G services by 2020
Open competition in transportation and distribution of natural gas
Liberalization of basic petrochemicals
111 GWeq by 2027 Expected 4.6% CAGR in large, mid-sized and
commercial industry growing 2.3 GWeq per year Edge for those with clean, competitive generation
E&P Midstream / Downstream Power
Newpek, LLC established in
2006 to explore and exploit
unconventional resources
Alpek as leading petrochemical
company in North America
Experience in energy markets
Long history of implementing
cogeneration projects, including a
97 MW plant during 2014
E&P investment
opportunities
Overview of current E&P investment map Focus
Strategy: to continue to successfully growing through low-cost exploration and production in competitive new blocks
Possibility to partner with existing operators as CIEP and COPF contracts migrate to new exploration and exploitation contracts
Liberalization of the midstream / downstream sectors with open private participation across all segments
Liberalization of power generation and investment in distribution and transmission
Increased demand of E&P services from increased production
49,536 mmboe prospective
9,118 km2 Unconventional /
Chicontepec
21,772 mmboe prospective
5,657 km2 Onshore / shallow water / extra-
heavy oil
US$50bn over 4 years as originally
projected Investment opportunities
1,557 mmboe Farm-out projects
Alfa’s areas of interest
Round 0 (PEMEX) Migration CIEPs & COPFs Round 1 farm-outs
Round 1 exploration Round 1 exploitation
Burgos & Sabinas
Deep water Perdido
Golden Lane- Ébano-
Chicontepec
Deep water Han & Holok
Extra-heavy oil
Shallow waters
Unconventional
Farm-outs
U.S.
Mexico
Round 1 focus: Migration of Contracts, Bids and Farm Outs
The first opportunity for investors to participate in the Mexican O&G industry
Migration
Bids and Farm-outs
2,208 / 2,252
NA / 71,963
2P / Prospective (mmboe)
Production sharing License Ty
pes
3 to 5-year exploration
20 to 30-year exploitation Len
gth
Prequalification
Award variables
Bonus (license)
Adjustment mechanism Co
nsi
der
atio
ns
Blocks
Characteristics of contracts
22 fields (CIEP & COPF)
88 exploration
57 production
10 farm-outs
Announcement of bid
Database opening
Type of fields
Dec 2014
Feb 2015
TBD 2015
Jan 2015
Feb 2015
TBD 2015
Shallow water Exploration
Shallow water Production
Onshore Chicontepec
Unconventional Deep-water
Round 1 Calendar
May 2015
May 2015
Newpek: Key
competitive strengths
Experience in exploring and developing conventional and unconventional formations in the US and
Mexico
Strong presence in the Eagle Ford Shale formation
Partnerships with established upstream players in the US and Mexico
Highly qualified technical team to identify quality prospects
Integrated energy services company to support oil & gas field development (onshore and offshore)
ALFA: Guidance 2015
30 30
Alfa
Alpek
Nemak
Sigma
Alestra
Newpek
Revenues
2014 2015e % Ch
17,200 16,660 (3)
6,471 4,950 (24)
4,622 4,730 2
5,359 6,330 18
415 415 0
170 110 (35)
EBITDA
2014 2015e % Ch
2,040 2,228 9
434 585 35
714 745 4
636 758 19
170 160 (6)
116 60 (48)
Capex
2014* 2015e
1,426 1,280
320 400
393 435
387 250
106 115
133 80
* Including acquisitions
Note: Guidance as of July 22, 2015.
(U.S. $ Millions)