Alfa de CV : reports 4Q16 EBITDA of U.S. $540 million

Monterrey, N.L., Mexico, February 14, 2017.- ALFA, S.A.B. de C.V. (ALFA), a Mexican company with global operations that manages a portfolio of businesses involved in refrigerated food, petrochemicals, aluminum auto components, IT and telecommunications services and energy, reported today its 4Q16 unaudited financial results. Total revenues were U.S. $3,874 million, down 1% year-on-year primarily due to the depreciation of the Mexican peso and lower petrochemical feedstocks and aluminum prices. EBITDA was U.S. $540 million, down 17% vis-à-vis 4Q15, but only 3% down excluding extraordinary gains recorded in 4Q15. This reduction is mainly explained by lower margins for petrochemical products and adverse foreign exchange effects.

Alvaro Fernandez, ALFA's President, commented on the Company's results: 'Overall 4Q16 results were mixed, with good performances at Nemak and Sigma offset by weaker performances at Alpek and Axtel. Supported by strong auto markets in North America and Europe, Nemak performed solidly in the quarter and posted another record year in EBITDA. Excluding one-time gains recorded a year ago, Sigma posted positive results on a currency-neutral basis. In contrast, Alpek's results were negatively affected by lower polypropylene margins. Axtel's results were also impacted by the weakness of the Mexican Peso against the U.S. Dollar and the government´s spending cuts which resulted in a reduced number of projects'. Mr. Fernandez further commented, 'The Alfa companies continue to make investments to both support future growth and enhance efficiencies'.

Consolidated capital expenditures and acquisitions amounted to U.S. $450 million during 4Q16, for a total of U.S. $1,491 million in 2016. Net Debt at the quarter end of U.S. $5,844 million was 22% higher when compared to the U.S. $4,785 million in 4Q15. This increase primarily reflects the consolidation of Axtel's Net Debt plus capital expenditures in the period. At the end of the quarter, financial ratios were: Net Debt to EBITDA: 2.5 times; Interest Coverage: 6.6 times.

Majority Net Loss was U.S. $41 million in 4Q16, compared to Majority Net Income of U.S. $12 million in 4Q15. This year-on-year decrease is mainly the result of lower operating results and higher Comprehensive Financing Expenses ('CFE') due to higher foreign exchange losses.