Grupo Famsa de CV : pursues greater efficacy in its operating structure during 2017

Monterrey, N.L., Mexico, February 23, 2016. Grupo Famsa, S.A.B. de C.V. (BMV: GFAMSA), a leading Mexican commercial conglomerate in the retail, consumer credit and savings sectors, announced today its earnings results for the fourth quarter and full year 2016, posting an annual growth rate of 10.1% in Consolidated Net Sales for year 2016, and a Consolidated EBITDA of Ps.1,702 million, in line with its 2016 Guidance.

For 2017, the Company anticipates to revitalize its operating and business structure with the execution of an operating expense reduction program, which is estimated to reach Ps.240 million at year-end, and the selective closing of units in Mexico and the United States, coupled with a conservative only-maintenance CAPEX program as there is not any new opening planned in pipeline.

Likewise, Grupo Famsa will move forward to enhance its participation of clients from the formal economy, as well as payroll credit origination, which have generated significant benefits through the addition of stable and good quality assets into the credit portfolio in 2016; recording an 8.5% non- performing loans ratio (NPL) in Banco Famsa as of December 31, 2016.

Separately, it is important to note that derived from the guarantee monetization contributed by our majority shareholder, we expect to obtain an incremental cash flow in 2017 which will improve Grupo Famsa's financial structure. To this date, buy-sell transactions of 8 properties located in San Luis Potosi, Edo. Mexico, Tamaulipas, Chihuahua and Nuevo Leon are in process of titling, jointly amounting to Ps.570 million expected proceeds. Meanwhile, we are in the final stage of negotiation of 7 buy-sell transactions, which jointly reach Ps.805 million. The execution of these transactions will be informed to the market in a timely manner.

In light of this results, Mr. Humberto Garza Valdez, Grupo Famsa's CEO, stated: "We are well prepared to face the current challenges through the solid grounds of our strategies and the renewed vision of our business model, which has endured and successfully grown even under difficult times. Our 2017 Guidance sets forth a Consolidated Net Sales growth target range between 4.8% and 5.3% (Ps.18,900 - 19,000 million), and Consolidated EBITDA growth target range between 8.7% and 12.8% (Ps.1,850 - 1,920 million). Furthermore, we anticipate to obtain additional resources to capitalize our business plan and strengthen our financial structure tapping into the monetization of the real assets comprised in the guarantee trust."

Established in 1970 in Monterrey, Nuevo Leon, Grupo Famsa has consolidated its position as a publicly-traded company with a solid presence in the retail sector, focusing its efforts on satisfying families' diverse consumption, financing and savings needs. Its target market lies in the Mexican low-middle income households and the Hispanic population of the states where it operates in the USA. Retail sales of Grupo Famsa in Mexico comprise furniture, electronics, appliances, mobile phones, computers, motorcycles, clothing and other durable goods, which are mainly sold within the stores network of Grupo Famsa. In Texas and Illinois, in the USA, Grupo Famsa's offering comprises furniture, electronics, appliances, computers and other durable goods through the operation of its subsidiary Famsa, Inc.

Contact:

Investor Relations Paloma E. Arellano Bujanda paloma.arellano@famsa.com

Phone: +52 (81) 8389-3400 ext. 1419