GRUPO INDUSTRIAL SALTILLO, S.A.B. DE C.V.

22nd Santander Latin American Conference

January 17-19, 2018

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Forward Looking Statement

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This presentation and discussion may contain forecasts or projections in accordance with the vision and

expectations of the Administration with respect to the performance of the Company, the businesses and future

events. These forecasts and projections are subject to risks, uncertainties and assumptions that are uncertain.

Several factors can cause actual results to differ materially from those forecasts, projections and plans of the

Administration, including, without limitation, business development and marketing of new products, the demand

for and acceptance of the Company’s products, economic conditions in the product markets and the different

regions, the cost of raw materials and energy and the fluctuation of the exchange rate.

FINANCIAL EXPECTATIONS

The financial expectations, forecasts and projections in this presentation reflect the current beliefs of the Company

and its Administration. The Company is not required and does not acquire duty to update this presentation or any

forecast, projection or expectation as a result of new information, events or circumstances subsequent to this date.

Diversification

3

Auto Parts

Casting and machining of auto parts in gray iron, ductile iron,

and aluminum; for brake, engine, transmission and suspension

systems.

Construction

Ceramic and Porcelain Tiles, Water Heaters* and Pipe Fitting

products*.

Housewares

Kitchen and tableware in aluminum, enamel on steel and

ceramic.

* In process of Divestment.* Subject to COFECE authorization.

Breakdown

4

Sales

EBITDA

Auto Parts2010 to 2017:

Over $650 Million USD CAPEX for Organic growth and

Acquisitions. *

Iron Casting Annual Capacity grew

from 78 k to +550 K tons. *

AUTO PARTS CONSTRUCTION HOUSEWARES

Pro forma GIS figures LTM Sep-17 including Infun and Calorex

59%

33%

8%

79%

17%

4%

* Including Evercast (JV with TRW)

GISSA at a Glance

5

90 Year Story 40+ years listed in BMV + 8000 employees

25 manufacturing facilitiesin 7 countries & 3 continents

$1B USD Sales15% EBITDA Margin

from 2014 to 2017Sales doubled and

EBITDA tripled

Pro forma figures LTM Sep-17 including Infun and Calorex

Strategic Repositioning

6

2010 2012 2014-2015

2011 2012-2013 2015

millions

Acquisition Auto Parts

facility in SLP

USD $50millions

To double the installed

capacity of SLP facility

USD $65millions

JV with Fagor Ederlan for

machining of iron parts

USD $50

Up to

millions

To increase capacity in

Saltillo and Irapuato

USD $30millions JV with TRW

for casting and

machining of parts for

brake systems

USD $120 USD $88Millions to Acquire ACE Group

Facilities in Spain, Poland and the Czech

Republic. Iron casting and Aluminum

casting and machining. Leader in parts for

brake systems in Europe

millions of

Divestment of

Blocks and Heads

Division

USD $439

2016

millions to Acquire INFUN Group

design, casting y machining of parts for

engine, transmission and suspension –

Auto Industry. Facilities in Spain, Italy

and China *

USD $308

2017

Millions

Water Heaters BU

Divestiture

Announcement **

USD $210

* US $352 including Net Debt * Subject to COFECE authorization

Global Footprint

7

Pro forma GIS figures LTM Sep-17 including Infun and Calorex

Pre Infun Acquisition Pro-forma Infun Acquisition

Revenue by Geography Revenue by Currency

Europe

17%

America83%

Europe

30%

Asia

4%

America

66%

39%

EUR USD

MXN

17%

44%MXN

33%30%

EUR

CNY

4%

33%

USD

Pre Infun Acquisition Pro-forma Infun Acquisition

Highlights of Globalization

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• Auto Parts developed a Differentiated Value Proposal.

• Expansion in the Auto Parts Industry: New Geographies and growing our customer base

• Exposition to Nafta market is reduced because of Diversification to Europe and China.

• Aluminum Casting process added to portfolio.

• Machining + Co-design (R&D): Value Chain Integration.

• Challenging year of Transition and Focus on Integration.

• Talent development to achieve Synergies and Best Practices.

AUTO PARTS SECTOR

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5 Business Units and facilities in Mexico, Spain,

Italy, Poland, Czech Republic and China, we supply

iron and aluminum components to our customers at

the most important regions in the world.

Mexican and European leaders in the production of calipers for brake systems and engine crankshafts.

Auto Parts Business Units

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6 Business Units in North America, Europe and China.Installed capacity of +550 k tons iron foundry, + 10 k tons aluminum & + 15 machined million pieces.

Iron Foundry Iron & Aluminum Foundry + Machining

Iron Foundry + Machining

Iron Foundry + Machining

Machining Machining

México Spain, Poland & Czech Rep.

Spain, Italy & China México México China

235k tons 82k tons (Iron)10k tons (Alum)

3.5 Mill. Pc. (Mac)

193k tons2.5 Mill. Pc.

52k tons6 Mill. Pc.

5 Mill. Pc. 2.5 Mill. Pc.

85% Tiers15% OEM

100% Tiers 74% OEM26% Tiers

100% Tiers 100% Tiers 100% Tiers

Brake, Engine, Suspension & Transmission

Brake Engine, Suspension and Transmission

Brake Suspension, Transmission & Brake

Suspension

Auto Parts Product Portfolio

• Differential Case• Yokes• Gear box

• Clutch Plates

Transmission (16%)• Rotor / disk• Drums• Spacers

• Brackets• Calipers• Cylinder Wheel

Brake (44%)

• Crankshafts• Bearings• Exhaust manifolds• Flywheels• Dampers

Engine (27%)

• Knuckles• Control arms

Suspension (13%)

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Auto Parts Highlights

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• Largest independent manufacturer of Crankshafts in the world.

• Largest independent Foundry in Mexico.

• From 2010 to 2017 the Iron Casting Annual Capacity grew from 78K to 550K tons.

• Co-Design + R&D + Casting + Machining: Integrated Value Chain.

• 60% Revenues Europe + China and 40% Revenues in North America.

• EBITDA margin expansion.

Differentiated Value Proposal

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Co-DesigningStrategic Global

Footprint

Focus on 6 Strategic Products

R&D

Efficiency based Competitiveness

Customer Oriented

Material Diversification

Iron MoldingProcess

Diversification

Machining Value Added Process

Multi-region Platforms

INDUSTRY

OVERVIEW

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Industry Cycle – North America

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• 2017 Light Vehicles Production ~ 17.5 million

• 2017-2021 CAGR 1.3% *

• Production Growth Driver: México

• SUV’s most dynamic category

* IHS Automotive Light Vehicle Production Forecast @ August 2017

Our Position:

• Iron Foundry Market Share in México ~ 30%

• Future demand growth in Mexican Iron Foundry

Capacity – Expansion Opportunity

• ~ 75% of GIS NA Auto Parts Sales to Pickups & SUVs

Competitive Advantage:

• Machining (value added) capabilities

• Recognized as experts in safety critical

components

• Strategic Facilities Location

NAFTA Negotiations

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KEY ISSUES OF CONTROVERSY

• Regional Content (62.5% to 85%)

• US Content (50%)

• Sunset Clause

NAFTA CANCELLATION

MITIGATING FACTORS

• GIS NA Auto Parts ~ 90% (Average) of Regional

Content

• Long lifecycles / Limited capacity in the US

• Structured review vs Automatic termination

• Tactics as dramatic rhetoric

• Will only raise vehicle prices for American

consumers

• ~ 3% tariffs under WTO rules (MFN)

60% of GIS Auto Parts Sales made in Europe and China

Industry Cycle - Europe

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• 2017 Passenger Cars Production ~ 19.8 million

• 2017-2021 CAGR 2.6% *

• Production Growth Driver: Eastern Europe

• German OEMs increasing Market Share

* PWC July 2017 Passenger Cars / PanEurope: Europe, Turkey and Russia

Our Position:

• ACE Brakes Market Share ~ 25%

• Iron & Aluminum (Foundry & Machining)

• Ongoing Capacity Expansion in Czech Republic and Spain

Competitive Advantage:

• Strong and specialized European supplier

• Leading edge capabilities in new products

development

• Western and Central Eastern Europe Presence

Industry Cycle - China

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• 2017 Vehicle Production ~ 27.9 million

• 2017-2021 CAGR 3.1% *

• World´s production leader

• Japan & Korea production decreasing

Our Position:

• Iron Foundry & Machining

• Possible Capacity Expansion

• Machining JV with Fagor Ederlan

Competitive Advantage:

• Local Customers Access

• Regional Export Capabilities

• World Class Facilities (Customer Awarded)

* IHS

INDUSTRY

TRENDS

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Industry Disruptive Trends

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* UBS, IHS, ACEA, CAAM, Fourin, May- 17

• Electrification

‐ * 2025 Global Sales ~ 104 million vehicles, expected mix:

‐ 86% ICE + Hybrid

‐ 14% Electric

‐ GIS Components compatible to ICE + Hybrid (including Crankshaft)

‐ Our customer, Chassis Brakes International (CBI) assigned Fuchosa (an ACE facility) a platform

for electrical vehicles to supply Volkswagen. The operations are expected to begin by mid

2019. We believe this will be approximately 3,000 tons/year program.

‐ Ongoing negotiations to capture additional volume for electrical vehicles (not only in Brakes

auto parts).

Industry Disruptive Trends

21* Deloitte “Future of Mobility, whats next”** Deloitte “Supplying the future of mobility”

• Diverse Mobility

‐ Shared mobility could expand demand on cars. *

‐ We supply the same parts to hybrids as we do to ICE

• Autonomous Driving

‐ Tiers concentration in new technologies could allow us to consolidate Design, Foundry and

Machining processes (CAPEX restrictions & preferences).

• Connectivity

‐ Technology will push efficiency levels and complexity, creating barriers of competitiveness

within the actual market participants. **

Auto Parts Strategic Priorities

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• Follow on Globalization Strategy – Assuring Synergies Execution.

• Guarantee Technical Talent Development.

• Profitable and Sustainable Growth in each Business Unit.

• Designing Capabilities + R&D.

• Supply capabilities in various technologies & value added processes.

CONSTRUCTION SECTOR

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Ceramic Tiles

60%

Water Heaters

40%

Sector Sales Distribution:

Ceramic Tiles Highlights

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• Market Value: *

‐ México: ~ US $1.0 billion

‐ US: ~ US $3.7 billion

• Demand Expected Growth: ~ 4% CAGR (16-21), for both markets.

* FCW Magazine, U.S. Floor Report 2017 and internal estimates

Our Position:

• ~ 17% Mexican Market Share

• ~52 million sq. meter installed capacity (México)

• Exports (mainly US) ~ 25% of Total Sales

Competitive Advantage:

• Strong Distribution Channels

• 100% Decoration on Digital Printing Tech.

• Brand positioning

Vitromex Evolution

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• 50 years in the market.

• #13 largest manufacturer worldwide. *

• CAPEX for Capacity Transformation and Digital Decoration.

* Resource: The Ceramic World Review magazine

Ceramic Tiles Strategic Priorities

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• Focus on Productivity.

• US Sales Team Consolidation.

• Product Portfolio Segmentation.

• Capacity Transformation.

Water Heaters Highlights

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• Market Value: *

‐ México: ~ $2,650 million MXP

‐ US: ~ US $4.2 billion

* Internal estimates

Our Position:

• ~ 3% NAFTA Market Share

• Multi region – channel distribution in México

• Exports (mainly US) ~ 20% of Total Sales

Competitive Advantage:

• Market Share Leader in México

• Strong Branding Positioning

• Segmentation & Wide Product Portfolio

Calorex Leadership

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• 60 years in the market.

• New Technologies in Product development.

• American Standard brand license in US sales.

Water Heaters Strategic Priorities

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• Preserve Mexican Market Leadership

• Develop Retail Plumbing Distribution Channel

• US Market Focus (products & regions)

HOUSEWARES SECTOR

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Manufacture and market diverse cookware &

tableware products. Also trade kitchenware

accessories & appliances.

Housewares Highlights

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• México Market Value: *

‐ Cookware: ~ $4,000 million MXP

‐ Tableware: ~ $2,800 million MXP

* Internal estimates

Our Position:

• ~ 18% México Cookware Market Share

• ~ 11% México Tableware Market Share

• Multi region – channel distribution in México

Competitive Advantage:

• Strong Branding Positioning

• Segmentation & Wide Product Portfolio

• Competitive manufacturing cost vs regional

producers

Cinsa Continuous Innovation

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• GIS origins.

• Most recognized kitchenware brands in Mexico.

• Innovation of products and Enamel Steel Repositioning.

• Consistent Cash Flow generation.

Housewares Strategic Priorities

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• Profitable Sustained Growth

• Preserve or Increase Market Share of each category

• US Expansion Strategy Development

FINANCIAL PERFORMANCE

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2013 2014 2015 2016 20172013 2014 2015 2016 2017

Accelerated and Profitable Growth

35AUTO PARTS CONSTRUCTION HOUSEWARES

8,845

19,306

95010.7%

2,91915.1%

NET SALESCAGR 2013 - 2017 + 21.5%

EBITDACAGR 2013 - 2017 + 32.4%

MXPMillions

9,71211,275

14,552

1,05810.9%

1,43412.7%

2,11114.5%

Margin Expansion because of Auto Parts contribution

growth

GIS estimated figures LTM Sep-17 including Infun and Calorex

Financial Highlights

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• “AA -” Credit Rating (Fitch & HR)

• Net Debt to EBITDA: 2.5x

• Debt Composition: 30% USD, 50% Euros & 20% MXP

• Average Debt Maturity: 3.8 years

• Debt Maturity Profile:USD Million %

2017 7 2%

2018 153 33%

2019 47 10%

2020 82 18%

2021 - 169 37%

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Stock Performance

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GISSA NEMAK RASSINI A RASSINI CPO LAMOSA * CERAMIC D VASCONI *

• Most defensive stock in a volatility period

• Average Daily Trading (90 days):

‐ 200,000 shares / $6.5 million MXP

• vs July 2016 (Avg 90 days):

‐ 5.5x Daily Transactions improvement

‐ Triple Daily Trading Volume

‐ Double Analyst Coverage

• Liquidity Index (IB) 72nd place, an

improvement of 25 positions vs Nov-16

• Active Market Maker & Buy-back Program

• Stock price upside: 14% - 38% *

* Analyst Coverage Estimates – GISSA 2018 Price Target

FOCUS AND PORTFOLIO SIMPLIFICATION

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Press Release Highlights

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• In May 23rd, GISSA informed the market about the agreement with Rheem Manufacturing Co.

for the divestment of the Water Heaters Business.

• The transaction includes the subsidiaries Calentadores de América S.A. de C.V., Fluida

S.A. de C.V. y Water Heating Technologies Corp., dedicated to the manufacture and market of

water heating and pipe fitting solutions.

• Transaction size: MXP$3,915 millions.

• Subject to COFECE authorization.

Rational & Strategic Fit

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• This represents for GIS an opportunity to focus and simplify the business portfolio.

• This transaction brings along financial flexibility.

• Proceeds will be used to pay Debt and support Organic Growth.

• Since June 2017, Calorex has been reported as Discontinued Operation.

• Ongoing process – so far, GIS have complied with all information requirements from COFECE.

Pro forma Contribution

41

• Strong focus and concentration in

Auto Parts.

• Vitromex focus: Capacity Transformation.

• Auto Parts working on Synergies.

AUTO PARTS CONSTRUCTION HOUSEWARES

GIS estimated figures LTM Sep-17 with Infun but excluding Calorex

Sales

EBITDA

68%

23%

9%

84%

12%

4%

Revenue Distribution – Pro forma

42

GIS estimated figures LTM Sep-17 with Infun but excluding Calorex

Pre Divestiture Post Divestiture

Revenue by Geography Revenue by currency

America

4%

Asia

35%

Europe

61%

EUR

MXN

4%

35%

USD

26%

CNY*

35%

Pre Divestiture Post Divestiture

30%

66%

4%

America

Europe

Asia

4%

MXN

RMB

EUR

30%

34%

USD

32%

2016 20172016 2017

Pro forma Revenue

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GIS Estimates of Calorex Divestiture

AUTO PARTS CONSTRUCTION HOUSEWARES 2017 Pro forma LTM Sep-17 including Infun

14,552

19,306

PRE DIVESTITURE POST DIVESTITURE

12,011

16,827

MXPMillions

¿WHY GISSA?

44

45

¿WHY GISSA?

• Auto Parts Business Differentiated value proposal.

• Accelerated Growth and Margin Expansions.

• Strategic Diversification into European and Asian Markets.

• Recognized Brands, Leaders.

• Solid Corporate Governance.

GRUPO INDUSTRIAL SALTILLO, S.A.B. DE C.V.

22nd Santander Latin American Conference

January 17-19, 2018

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