Fourth Quarter 2013 Results


Mexico City, February 26, 2014 Grupo Carso S.A.B. de C.V. (BMV: GCARSO OTC: GPOVY) announced today its results for the fourth quarter and full year 2013.

Highlights

o Quarterly sales of the Retail division and the Industrial division grew 3.0% and 2.2%, reaching $13,091 and $6,394 million pesos, respectively.

o Cumulative sales of Grupo Carso posted a 3.1% increase reaching $85,871 million pesos. Revenues of

Infrastructure and Construction rose 12.9% while revenues of Retail rose 2.8% during 2013.

o On a cumulative basis, operating income and EBITDA grew 89.8% and 78.0% respectively, due mainly to the recording of $7,589 million pesos related to the sale of the 20% equity stake in Philip Morris Mexico S.A. de C.V. (PMM), transaction which was completed in September 30, 2013.

Summary


Amounts in million pesos (MM Ps)

Consolidated Results

4Q13

4Q12

Var %

2013

2012

Var %

Sales

24,741

24,759

-0.1%

85,871

83,316

3.1%

Operating Income

2,447

3,204

-23.6%

17,277

9,103

89.8%

Controlling Net Income

1,929

2,539

-24.0%

13,929

7,641

82.3%

EBIT DA*

2,638

3,519

-25.0%

18,597

10,448

78.0%

Operating Margin

9.9%

12.9%

20.1%

10.9%

EBIT DA Margin

10.7%

14.2%

21.7%

12.5%

* For purposes of the EBITDA calculation, the amount from appraisal of inv ested properties of the retail div ision w as not included.

CONSOLIDATED RESULTS

Revenues

Other & Elim. 1.7%

4Q13 Revenue Breakdown

CICSA

19.6%

GCondumex

25.8%

GSanborns

52.9%

www.carso.com.mx

page 1

4Q13

Net Income

During the quarter, operating income decreased 23.6%, mainly driven by a provision related to the transaction price of the 20% equity stake in PMM reduced in part by a dividend given by the same PMM and other minor items. Additionaly, an allowance for slow-moving and obsolete inventories was recorded in the sector of Construction and Energy.
On a cumulative basis, operating income and EBITDA grew 89.8% and 78.0% respectively, due mainly to the recording of $7,589 million pesos related to the sale of the 20% equity stake in Philip Morris Mexico (PMM), transaction which was completed in September 30, 2013.
Controlling net income posted an 82.3% increase in 2013 reaching $13,929 MM Ps. This was mainly due to the recording of the sale of the 20% stake in PMM, as well as from the increase in revenues in the Infrastructure Division and to a lesser extent in the Retail Division.

Operating Income and EBITDA

Other &

elimin

-31.5%

4Q13 Op. Income Breakdown

GCondumx

17.5%


EBITDA (MM Ps)

4Q13

4Q12

2,638

3,519


Financial Results

Financial Results

4Q13

4Q12

Var%

2013

2012

Var%

Interest Expenses

-154.7

-264.8

-41.6%

-581.4

-815.2

-28.7%

Income (Loss) on derivatives net

24.1

8.1

196.2%

0.7

611.0

-99.9%

Interest Income

162.5

91.6

77.3%

459.9

294.5

56.2%

Interest (net)

31.9

-165.0

NA

-120.8

90.3

NA

ForEx Results

63.4

-13.7

NA

219.2

296.7

-26.1%

CFR

95.4

-178.7

NA

98.4

387.1

-74.6%

Income taxes

477.0

900.3

-47.0%

3,721.7

2,921.7

27.4%

Earnings from non-consolidated companies

250.7

590.9

-57.6%

1,308.8

1,662.9

-21.3%

Non-controlling participation in Net Income

386.9

170.0

127.6%

1,033.3

596.2

73.3%

NA= Not applicable

www.carso.com.mx

page 2

4Q13

Interest-bearing Liabilities

Total debt as of December 31, 2013 was $8,883 MM Ps compared to a total debt of $14,413 MM Ps as of
December 2012. Net debt was ($1,671) MM Ps, compared to a net debt of $9,328 MM Ps at December 31,
2012.
Net debt to LTM EBITDA was (0.08) times in the 4Q13, from 0.90 times as of December 2012. Additionally, the ratio LTM EBITDA to Interest Expense was 32.0 times in the 4Q13 compared to 12.8 times reported in the
4Q12.

Total Debt by CURRENCY

(Includes ForEx Hedges)

Pesos

84%

Dollars

16%

Total bank Debt by TERM

Long T

65%

Short T

35%

LTM EBITDA/Interest

Expense


32.0

Net Debt (MM Ps)

-1,671

4Q13

12.8

4Q12 4Q13

4Q12

9,328

www.carso.com.mx

page 3

4Q13



SEGMENT RESULTS RETAIL

Consolidated Results 4Q13 4Q12 Var % 2013 2012 Var %

Sales 13,091 12,704 3.0% 40,514 39,411 2.8% Operating Income 2,042 1,837 11.1% 5,006 4,566 9.7% Controlling Net Income 1,206 1,155 4.4% 3,233 2,967 9.0% EBIT DA 2,014 2,002 0.6% 5,500 5,226 5.3% Operating Margin 15.6% 14.5% 12.4% 11.6%

EBIT DA Margin 15.4% 15.8% 13.6% 13.3%

Contribution to

Consolidated Results

53% SALES

84% OP. INCOME

76% EBITDA

During the 4Q13, consolidated sales of Grupo Sanborns totaled $13,091 MM Ps, which meant $387 million pesos more than in the 4Q12; or a 3.0% growth.
Sears increased 2.8% its total sales (TS) and 0.5% its same store sales (SSS), Sanborns reduced 0.6%
its TS and 1.6% its SSS, while iShop/Mixup increased 13.7% its TS and 5.7% its SSS. It is worth mentioning that although all the formats were affected by a slow consumption environment, promotion plans and discounts in November for "El Buen Fin" and in December were carried out to support sales.
The increase in revenues mentioned, the sound performance of the credit business and the recording of Other Income, where $210 MM Ps came from the appraisal of investment properties, caused operating income to improve 11.1% in the 4Q13 totaling $2,042 MM Ps. This translated into an increase of 1.1 percentage points in the operating margin, which rose from 14.5% to 15.6%.
For purposes of the EBITDA calculation, the amount from appraisal of invested properties was not included. Therefore, EBITDA totaled $2,014 MM Ps, or a 0.6% growth compared to the 4Q12, while the EBITDA margin was 15.4%.
Controlling net income reached $1,206 MM Ps representing a 4.4% increase compared to the net income from October to December 2012, which was $1,155 MM Ps.

Grupo Sanborns 4Q13 Revenue Breakdown

Other

5.1%

iShop/M

6.4%

Grupo Sanborns 4Q13 EBITDA Breakdown

Sanbor

29.5%

Sears

53.7%

iShop/ Mix

11.1%

Sanborn

18.7%

Other

20.5%

Sears

54.4%

Note: For additional information please refer to Grupo Sanborns S.A.B. de C.V. 4Q13 Earnings Report.

www.carso.com.mx

page 4

4Q13


SEGMENT RESULTS

INDUSTRIAL

Consolidated Results 4Q13 4Q12 Var % 2013 2012 Var %

Sales 6,394 6,259 2.2% 25,223 25,852 -2.4%

Contribution to

Consolidated Results

26% SALES

18% OP. INCOME

20% EBITDA

Sales of Grupo Condumex increased 2.2% from October to December 2013 totaling $6,394 MM Ps, which is explained by the following sectors:

Industrial Metals showed a recovery in sales of 58.1% while the Automotive Sector had a sound performance of 31.3% in the quarter and 17.8% during the year. This was mainly due to an increase in the sales of harnesses, line which included a larger number of components in its design compared to the previous year.
The Construction Sector grew 1.0% its sales. Energy cables offset the reductions in transformers and turnkey projects, which reflected a lower demand from mining and electricity projects mainly driven by the lack of tender offers. During the last quarter of the year an allowance for slow-moving and obsolete inventories was recorded in transformers.
Although the sales of fiber optic were higher, the Telecom sector declined 1.6% due to lower volumes of copper and coaxial cables.
For the same reasons, a controlling net income of $294 MM Ps was reported, representing a decrease of
32.7% compared to a net income of $436 MM Ps in the previous year.

Revenue Breakdown by Business Sector

Var% 4Q13 vs. 4Q12

Var% 2013 vs. 2012

T elecom -1.6% -6.2% Automotive 31.3% 17.8% Construction and Energy 1.0% -2.7%

Industrial Metals 58.1% -3.3%

www.carso.com.mx

page 5

4Q13

SEGMENT RESULTS



INFRAESTRUCTURE AND CONSTRUCTION

Consolidated Results 4Q13 4Q12 Var % 2013 2012 Var % Sales 4,846 4,983 -2.8% 18,818 16,670 12.9% Operating Income 747 806 -7.3% 2,816 2,255 24.9% Controlling Net Income 619 606 2.1% 2,076 2,045 1.5% EBIT DA 869 904 -3.9% 3,255 2,580 26.1% Operating Margin 15.4% 16.2% 15.0% 13.5%

EBIT DA Margin 17.9% 18.1% 17.3% 15.5%

Contribution to

Consolidated Results

20% SALES

31% OP. INCOME

33% EBITDA

CICSA's sales were $4,846 MM Ps, representing a reduction of 2.8% compared to the same period of 2012.
The sectors that increased revenues were: Civil Construction, Manufacturing and Services for the Oil and Chemical Industry and Infrastructure, with increases of 54.2%, 6.4% and 4.7% respectively. Civil Construction benefitted from the progress of works at the Nuevo Veracruz shopping mall, while Manufacturing and Services for the Oil and Chemical Industries reflected higher income from the allocation of steam injection wells and the outstanding addendums to the drilling contracts.
However this results were impacted by i) a decrease in sales in Housing, which fell 78.4% mainly due to the recording of an extraordinary income in 2012 on the sale of a land bank; and to a lesser extent by ii) a lower volume in the ducts installations in Mexico, which translated into a 16.1% reduction compared to the 4Q12.
For these reasons operating Income and EBITDA decreased 7.3% and 3.9% in the 4Q13, while margins declined by 0.8 and 0.2 percentage points, respectively.

Controlling net income increased 2.1% from $606 to $619 million pesos in the 4Q13, generated by an improvement in the financial results.

CICSA's backlog was $17,361 MM Ps at December 31, 2013, reducing 23.2% compared to the amount reported in the same period a year ago. It is important to highlight that this figure does not include $3,192
MM pesos from projects in consortium with other companies, such as the Atotonilco wastewater plant and the

Mitla-Tehuantepec highway.
www.carso.com.mx

page 6

4Q13


Forward Looking Statements

Certain statements in this earnings release may be related to expectations about future events of Grupo Carso. The phrases "will allow," "will," "estimate," "expect," "intend," "might," "should" and similar expressions generally indicate comments based on financial information, operating levels and conditions of the market to date. These statements are subject to factors such as volatility in metals prices, energy inputs and other inputs, the possibility of cyclical or seasonal business or consumer slowdown risks that are detailed in the Company's annual report and may cause actual results to differ materially from current expectations. Grupo Carso undertakes no obligation to publish a review on these forward-looking statements to reflect events or circumstances occurring after the date of publication of this release.

Invitation to the Conference Call

Date: Thursday, February 27, 2014
Time: 10:00-10:45 A.M. Mexico City Time
11:00-11:45 A.M. NY Time (US EST)
Access Number: +1 (412) 317-6776 (International and Mexico) Conference ID: Grupo Carso
Replay: Until March 11, 2014 (9:00 US EST)

Investor Relations Contact

Jorge Serrano Esponda

T. +52 (55) 5625-4900 Xt. 6617 jserranoe@inbursa.com
www.carso.com.mx

page 7

4Q13


ADDITIONAL CHARTS:

Financial Income Data

Million PESOS

Million DOLLARS

GRUPO CARSO

4Q13 4Q12 Var % 2013 2012 Var % 4Q13 4Q12 Var %

Revenues 24,740.9 100.0% 24,758.7 100.0% -0.1% 85,870.5 100.0% 83,315.9 100.0% 3.1% 1,899.0 1,912.4 -0.7% Operating Income 2,447.3 9.9% 3,203.7 12.9% -23.6% 17,277.3 20.1% 9,102.8 10.9% 89.8% 187.8 247.5 -24.1% EBIT DA 2,638.0 10.7% 3,518.9 14.2% -25.0% 18,597.0 21.7% 10,447.8 12.5% 78.0% 202.5 271.8 -25.5% Financial Results 95.4 0.4% -178.7 -0.7% NA 98.4 0.1% 387.1 0.5% -74.6% 7.3 -13.8 NA Net Income 1,929.4 7.8% 2,538.5 10.3% -24.0% 13,929.5 16.2% 7,640.6 9.2% 82.3% 148.1 196.1 -24.5%

GRUPO SANBORNS

Sales 13,090.8 100.0% 12,703.8 100.0% 3.0% 40,514.4 100.0% 39,411.3 100.0% 2.8% 1,004.8 981.3 2.4%

Operating Income

2,041.6

15.6%

1,836.9

14.5%

11.1%

5,006.2

12.4%

4,565.5

11.6%

9.7%

156.7

141.9

10.4%

EBIT DA

2,014.2

15.4%

2,001.7

15.8%

0.6%

5,500.2

13.6%

5,225.7

13.3%

5.3%

154.6

154.6

0.0%

Net Income

1,205.7

9.2%

1,155.2

9.1%

4.4%

3,233.0

8.0%

2,967.0

7.5%

9.0%

92.5

89.2

3.7%

GRUPO CONDUMEX

Sales 6,394.2 100.0% 6,258.7 100.0% 2.2% 25,222.6 100.0% 25,851.8 100.0% -2.4% 490.8 483.4 1.5%

Operating Income

428.7

6.7%

568.7

9.1%

-24.6%

1,656.5

6.6%

2,062.5

8.0% -19.7%

32.9

43.9

-25.1%

EBIT DA

518.4

8.1%

613.9

9.8%

-15.6%

2,023.5

8.0%

2,402.0

9.3% -15.8%

39.8

47.4

-16.1%

Net Income

294.0

4.6%

436.9

7.0%

-32.7%

1,265.3

5.0%

1,705.9

6.6% -25.8%

22.6

33.7

-33.1%

CICSA

Sales 4,845.6 100.0% 4,982.9 100.0% -2.8% 18,818.2 100.0% 16,669.9 100.0% 12.9% 371.9 384.9 -3.4%

Operating Income

746.7

15.4%

805.5

16.2%

-7.3%

2,816.5

15.0%

2,255.3

13.5%

24.9%

57.3

62.2

-7.9%

EBIT DA

869.2

17.9%

904.2

18.1%

-3.9%

3,255.2

17.3%

2,580.5

15.5%

26.1%

66.7

69.8

-4.5%

Net Income

618.8

12.8%

606.3

12.2%

2.1%

2,076.0

11.0%

2,045.1

12.3%

1.5%

47.5

46.8

1.4%

Balance Sheet Data

Million PESOS

GRUPO CARSO

Million DOLLARS

4Q13 4Q12 Var % 4Q13 4Q12 Var %

Cash & Equivalents 10,553.5 5,085.3 107.5% 810.0 392.8 106.2% T otal Assets 85,930.2 76,558.5 12.2% 6,595.5 5,913.6 11.5% T otal Debt 8,882.9 14,413.0 -38.4% 681.8 1,113.3 -38.8%

% Ps. Denominated 84% 80% 5.0% 84% 80% 5.0%

% Long T erm 65% 35% 84.4% 65% 35% 84.4% Net Debt -1,670.6 9,327.7 NA -128.2 720.5 NA Stockholder's Equity 56,641.0 41,880.6 35.2% 4,347.4 3,235.0 34.4% Shares Outstanding (´000) 2,289,801 2,289,801 0.0% NA NA NA Stock Price 69.5 40.1 73.1% 5.33 3.10 72.1%


www.carso.com.mx

page 8

distributed by