Grupo Famsa de CV : strengthens its financial structure and advances on its operational transformation to improve profitability

Monterrey, N.L., Mexico, May 3, 2017. 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 first quarter 2017, posting a 7.9% decrease in bank debt and debt certificates compared to 4Q16, a growth of 3.6% YoY in Consolidated Net Sales, as well as the selective closing of 19 branches in pursuit of a more efficient business structure.

During 1Q17, Grupo Famsa made significant efforts to strengthen its financial structure, reducing the balance of its bank debt and debt certificates in pesos by 9.1% and 12.5%, respectively, compared to the end of 2016. In addition, on May 4th,2017, the Company will pay the second capital amortization of GFAMSA16´s issuance totaling Ps.166.6 million. In consequence, the due balance in debt certificates will decrease to Ps.1,554 million, equivalent to a 20.9% balance decrease vs. year-end, 2016.

On the other hand, and following the monetization of assets announced last February, a Guarantee Trust was established to which 20 properties were contributed with a commercial value of Ps.2,006 million and whose trustee is Famsa Mexico. Furthermore, 10 properties were sold for Ps.827 million and 25 properties are in process to be monetized for an estimated commercial value of Ps.2,258 million, for which we expect to achieve significant progress in its monetization by June 30, 2017.

In relation to the retail front, operations in Mexico were the main driver for consolidated results, reaching an increase of 6.4% in Net Sales and 6.0% in SSS, compared to 1Q16, in line with the 2017 Guidance. This sales performance was driven by a higher origination of Personal Loans and the outstanding execution of the Motorcycles (+12.2%) and Appliances (+9.0%) categories during the quarter. In contrast, Famsa USA's MXP sales decreased 13.3% due to weak demand as a result of the social and political uncertainty of the Hispanic population in that country.

At the same time, Banco Famsa implemented intense marketing campaigns to attract new clients, mainly from the formal economy, both to collect savings of wealth management and to originate consumer loans, posting an increase of 16.5% in Bank Deposits and the strengthening of the consolidated loan portfolio through the greater participation of clients belonging to the formal economy (64%), and, in this way, contributing to the stability of the NPL ratio, which remained at a level of 8.5% at the end of the quarter.

In this regard, Mr. Humberto Garza Valdez, CEO of Grupo Famsa, stated: "We entered the year 2017 facing major challenges. Nevertheless, we achieved positive results due to the timely implementation and execution of our strategic initiatives. We expect these initiatives will improve the Company's liquidity and profitability in the coming quarters, coupled with the use of resources obtained through the monetization of assets, despite the persistent environment of higher inflation and interest rates in Mexico and uncertainty in the United States."

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