CORPORATEPRESENTATIONFourth Quarter 2019

Safe Harbor

This presentation contains forward-looking information based on numerous

variables and assumptions that are inherently uncertain. They involve

judgments with respect to, among other things, future economic,

competitive and financial market conditions and future business decisions,

all of which are difficult or impossible to predict accurately. Accordingly,

results are likely to vary from those set forth in this presentation. Copyright©

2020 ALFA, S.A.B. de C.V. All rights reserved. Reproduction and distribution is

forbidden without the prior written consent of ALFA, S.A.B. de C.V.

4Q19-v1.22

Index

ALFA Overview

ALFA Fourth Quarter Results

Appendix

Alpek – Petrochemicals

Sigma – Food Products

Nemak – Aluminum Autoparts

Axtel – IT & Telecom

Newpek – Oil & Gas

Other Information

3

Investment Highlights

1. Global company with operations in 28 countries; ~70% of revenues outside Mexico

2. Diversified portfolio of businesses with leading industry positions

3. Value-enhancing initiatives and subsidiary-driven investments/divestments

4. Strong corporate governance and experienced management team

5. Dollar-denominated dividend supported by strong cash generation

6. Solid balance sheet with investment-grade rating

4

ALFA has grown to become a global company

Manuf. Presence(Countries)

SalesOutside Mexico

Employees

2009 16 52% ~47,000

2019 29 67% ~83,000

5

Diversified portfolio of businesses with leading industry positions

8 out of 10Mexican Corporates use Axtel’s

IT and Telecom services

#1 in the production ofPTA, PET and EPSin the Americas

11 Sigma brandssell more than

US $100 Million a year each

1 out every 4 new carssold in the world contains

at least one Nemak product

728 production wellsoperated by Newpek

in U.S. and Mexico

Petrochemicals Food Products Aluminum Autoparts IT + Telecom Oil & Gas

6

Alpek, Sigma and Nemak are ALFA’s three largest businesses

Revenues 20191

US $17.5 BillionEBITDA 20191

US $2.3 Billion

35%

37%

23%

4%

37%

31%

27%

12%

71. Does not include Newpek and others

Ownership

Petrochemicals

Food Products

Aluminum Autoparts

IT + Telecom

Oil & Gas

82%

100%

75%

53%

100%

Public company since 2012

Public company since 2015Ford Motor Co. owns 5.4%

Public company since 2005

8

Bottom-up strategy aimed at driving long-term shareholder value

CORPORATE STRATEGY

Bottom-up strategy,driven by subsidiaries

Strategic investmentsand divestments

Enhance operational excellence

Long-term view

Long-standing independent Board of Directors

9

M&A is an important element of our strategy

2010Sigma

Bar-S

2011Alpek

Columbia siteEastman Chemical

2011Alpek

Wellman

2013Sigma

CampofrioFood Group

2016Alestra

Axtel merger

2018Alpek

Petroquímica Suapeand Citepe

2007Nemak

Teksid & HydroCasting assets

2005ALFA

DivestedHylsamex

2001Alpek

DAK Americas

10

2020Alpek

Lotte UK PET Plant

Wilton, UK

Strong management team and solid corporate governance

• C - Suite average tenure of 29 years generating cohesion, consistency, trust and alignment

• The average tenure of our top 174 Executives is of 21 years developing decision-making, consistent operations and accountability

• Strong Corporate Governance with 85% of Independent Board of Directors

11

Experienced Management Team

Rolando ZubiránAxtel PresidentTenure 21 years

Rodrigo FernándezSigma PresidentTenure 21 years

Armando TamezNemak PresidentTenure 36 years

José de Jesús ValdezAlpek PresidentTenure 43 years

Paulino RodríguezVP Human CapitalTenure 16 years

Armando GarzaChairman of the BoardTenure 41 years

Álvaro FernándezPresidentTenure 29 years

Eduardo EscalanteCFOTenure 32 years

Carlos JiménezLegal CounselTenure 41 years

12

Board of Directors

• JOSE CALDERON ROJAS (2A)Chairman of the Board and Chief Executive Officerof Franca Industrias, S.A. de C.V. and Franca Servicios, S.A. de C.V.

• ENRIQUE CASTILLO SANCHEZ MEJORADA (1A)Managing Partner of Ventura Capital Privado, S.A. de C.V.

• FRANCISCO JAVIER FERNANDEZ CARBAJAL (1C)President of Servicios Administrativos Contry, S.A. de C.V.

• ALVARO FERNANDEZ GARZA (3C)President of ALFA, S.A.B. de C.V.

• ARMANDO GARZA SADA (3C)Chairman of the Board of ALFA, S.A.B. de C.V.

• CLAUDIO X. GONZALEZ LAPORTE (1B)Chairman of the Board of Kimberly-Clark de México, S.A.B. de C.V.

• DAVID MARTINEZ GUZMAN (1C)Chairman of the Board and Special Advisor of Fintech Advisory Inc.

• JOSE ANTONIO MEADE KURIBREÑA (1C)Board member since February 2019

• ALEJANDRO RAMIREZ MAGAÑA (1)President of Cinépolis, S.A. de C.V.

• ADRIAN SADA GONZALEZ (1B)Chairman of the Board of Vitro, S.A.B. de C.V.

• FEDERICO TOUSSAINT ELOSUA (1A)Chairman of the Board and Chief Executive Officer ofGrupo Lamosa, S.A.B. de C.V.

• GUILLERMO F. VOGEL HINOJOSA (1C)Chairman of the Board of Grupo Collado, S.A.B. de C.V., andof Exportaciones IM Promoción, S.A. de C.V.

13Keys: (1) Independent Board Member / (A) Audit Committee (B) Corporate Practices Committee (C) Planning and Finance Committee

ALFA Sustainability Model is based on four pillars

INTERNAL WELL-BEING

COMMUNITY

ECONOMY

ENVIRONMENT

171 ALFA facilities run on clean and renewable energy sources such as wind and geothermal

US $35 Million invested in funding health, safety and employee development programs

10,845 students from 98 schools were benefited from ALFA´s support

More than 83,400 employees across 28 countries in America, Europe and Asia

In 2019, ALFA continued to deploy a broad program of actions in every aspect of its sustainability strategy

Collaborated with more than 190 institutions of social care

Nemak is the main consumer of recycled aluminum in Mexico, 80% of its aluminum usage comes from recycled sources

14

Financial Highlights

17,223 16,315

15,576 16,804

19,055

17,538 17,018

14 15 16 17 18 19 20E

Revenues

2,040

2,420 2,322

2,018

2,858

2,298

2,027

14 15 16 17 18 19 20E

EBITDA

1,422

1,632

1,492

1,148

1,570

920 902

14 15 16 17 18 19 20E

Capex

A. Guidance as of February 12,2020 | B. Includes US $427 Million from extraordinary items

AB

Revenues(US $ Million)

EBITDA(US $ Million)

Capex & Acquisitions(US $ Million)

15

AA

Financial Highlights

3,473

5,123 4,785

5,844

6,300 6,543

6,276

13 14 15 16 17 18 19

Net Debt

1.8

2.12.0

2.5

3.1

2.3

2.7

13 14 15 16 17 18 19

Net Debt/EBITDA

6.77.2

7.7

6.6

4.6

5.8

5.2

13 14 15 16 17 18 19

Interest CoverageNet Debt(US $ Million)

Net Debt/EBITDA(Times)

Interest Coverage(Times)

16

Cash dividends; +11% CAGR 2010 – 2020 (USD denominated)

70

97 104

118

154 154 170 169 168

202

100

10 11 12 13* 14* 15 16 17 18 19 20

* The 2014 dividend was paid early in 2013. The graph shows the approved amounts for each corresponding year.

Paid Dividends(US $ Million)

17

200

To be proposed in Sept ‘20

March100

100

Index

ALFA Overview

ALFA Fourth Quarter Results

Appendix

Alpek – Petrochemicals

Sigma – Food Products

Nemak – Aluminum Autoparts

Axtel – IT & Telecom

Newpek – Oil & Gas

Other Information

18

Revenues(US $ Million)

4Q19 vs 4Q18(US $ Million)

Revenues reflect lower feedstock prices in Alpek and lower volume in Nemak

2019 vs 2018(US $ Million)

19

4,6924,479 4,473 4,319 4,267

4Q18 1Q19 2Q19 3Q19 4Q19

887

519

595 548

636

4Q18 1Q19 2Q19 3Q19 4Q19

Reported EBITDA(US $ Million)

Extraordinary Items Comparable EBITDA(US $ Million)

4Q19 EBITDA benefited from extraordinary items; full year in line with guidance

20

EBITDA Margin4Q19 vs 4Q18: -28%4Q19 vs 3Q19: 16%

4Q18 1Q19 2Q19 3Q19 4Q19

ALPEK 188 (8) (28) (19) 184

SIGMA - - - - -

NEMAK - - 8 - -

AXTEL 139 - 39 - (4)

NEWPEK 22 (1) (1) (4) (58)

TOTAL 322 (8) 18 (23) 122

565528

577 571514

12.0%11.8%

12.9%13.2%

12.1%

4Q18 1Q19 2Q19 3Q19 4Q19

4Q19 vs 4Q18: -9%4Q19 vs 3Q19: -10%

4Q19 Comparable EBITDA down y-o-y due primarily to Nemak amid GM strike

Comparable EBITDA 2019 vs 2018(US $ Million)

21

-10.0%

Comparable EBITDA 4Q19 vs 4Q18(US $ Million)

-9.0%

ALFA Net Debt(US $ Million)

Net Debt 4Q19 vs 4Q18(US $ Million)

Leverage Ratio (Net Debt/EBITDA)

ALFA Net Debt down vs. 3Q19 and 4Q18 supported non-core asset monetizationsand solid operating cash generation

22

6,543

7,194 7,122 7,032

6,276

4Q18 1Q19 2Q19 3Q19 4Q19

2.3

2.62.7

2.82.7

4Q18 1Q19 2Q19 3Q19 4Q19

4Q19 results supported by sale of Cogeneration plants

Paraxylene vs Brent Crude Oil Price (Base=100)

Margin: Asia PET to Px/MEG (US $ / Ton)

23

4Q19 Highlights

• Highest quarterly EBITDA year-to-date in 4Q19

• Sold the cogeneration plants for U.S. $801 million, paid down debt, leverage at 1.6x EBITDA

• Acquired 350 kton PET facility in Wilton, UK; only PET producer in the UK, first plant outside America

• Paraxylene price disconnection vs. crude oil due to new capacity in China

• Asian reference polyester margins decreased below expectations; recovered in January

• Paid an extraordinary dividend of US $143 million in January 2020

60

100

140

dec-18 jan-19 feb-19 mar-19 apr-19 may-19 jun-19 jul-19 ago-19 sept-19 oct-19 nov-19 dec-19

Brent Px

240276 263 284

342

478

377333 323

370304

227

1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

0.0

0.5

1.0

1.5

2.0

2.5

3.0

0

0.2

0.4

0.6

0.8

1

1.2

13.5

12.1

9.0

7.2

14 14.4

9.6

5.8

Mexico USA LatAm Europe

EBITDA Margin By Region4Q19 Highlights

Sigma posted solid results throughout the year, despite raw material prices pressure

• EBITDA up y-o-y in 4Q19 and 2019 driven primarily by the U.S. and Mex.

• Higher EBITDA margin y-o-y in Mexico, U.S. and LatAm despite ASF

• Launched +270 products through its innovation platform in 2019

• Launched “Tastech by Sigma”, its first worldwide acceleration program to collaborate with high-impact startups and scaleups

2018

2019

6.5

24

Pork Ham Price

Jan. Mar. Jun. Sept. Dec.

2018

U.S. ($/lb)

2019Europe (€/kg)

* Excluding a net extraordinary gain of US $6 million in 3Q18 (Reported EBITDA Margin: 7.9)

*

EBITDA per Equivalent Unit (USD/Equivalent Unit)

2018

2019

4Q19 Highlights Volume 4Q19 vs 4Q18(Million Equivalent Units)

4Q19 Sales and EBITDA reflect lower volume amid GM strike

• 4Q19 Volume impacted by:

• GM strike in the US

• Phase-out of production of certain models among Detroit customers

• Lower OEM prod. in Europe and China

• 2019 EBITDA in line with expectations

• Supplied EV/SC components for 16 vehicles of 6 customers worldwide

• Completed construction of facility in NA dedicated to the production of e-mobility applications

25

15.015.8

13.0

14.914.5

15.5

13.1 13.1

1Q 2Q 3Q 4Q

4Q19 Highlights

4Q19 EBITDA from Continuing operations up 11% Y-o-Y

• Better than expected EBITDA driven by operating efficiencies

• Monetized 3 data centers in strategic agreement with Equinix for US $175 million

• 2019 EBITDA was US $232 million, up 7% versus 2018 (adjusting for discont. ops. & ext. items)

• Started operations under two specialized business units: Services and Infrastructure

51%49%

Service Infrastructure

Continuing EBITDA by Business Unit(Total 2019: US $232 million)

EBITDA (US $ Million)

55 56 57 57 62

13 21

-4

138

39

-44Q18 1Q19 2Q19 3Q19 4Q19

Continuing

Discontinued

Extraordinary

26

Progress on value-enhancing initiatives to further strengthen balance sheet and increase return on invested capital

27

• Finalized the sale of two cogeneration power plants for US $801 million

Petrochemicals

• Monetized three Data Centers in a strategic agreement with Equinix for US $175 million

• Began to operate under two specialized business units: Infrastructure and Services

• Ongoing process with financial advisors to evaluate strategic alternatives

IT & Telecom Oil & Gas

• Evaluating strategic alternatives for assets outside of Mexico

Index

ALFA Overview

ALFA Fourth Quarter Results

Appendix

Alpek – Petrochemicals

Sigma – Food Products

Nemak – Aluminum Autoparts

Axtel – IT & Telecom

Newpek – Oil & Gas

Other Information

28

29

Leading Petrochemical company

Leading position across product portfolio:

• #1 PTA-PET producer in America

• #2 PET producer Worldwide

• #1 EPS producer in America

• Only PP producer in Mexico

2019

Revenues

US $6.2 Billion

EBITDA

US $0.9 Billion

30

Business Segments

Polyester chain

2019

Revenues US $4.7 Billion (77%)

EBITDA US $428 Million (50%)

Products

Purified Terephthalic Acid (PTA)

Polyethylene Terephthalate (PET)

Polyester fibers

Plastics & chemicals

2019

Revenues US $1.4 Billion (23%)

EBITDA US $218 Million (26%)

Products

Polypropylene (PP)

Expandable Polystyrene (EPS)

Caprolactam (CPL)

Fertilizers and other chemicals

312019 EBITDA includes a Cogeneration Sale Gain of US $188 M

Products are widely used for food packaging and consumer end-markets

Beverage

Food

Personal care

Sample end users by industry

Volume 2019 By Industry(4,384 Kta)

Construction4%Textiles

7%

ConsumerGoods

35%

Food and Beverages55%

Sales 2019 Geography(US $6,216 Million)

Asia & others0%

Europe3%

Mexico29%

U.S./CAN 44%

SA24%

Textiles

32

Installed capacity amounts to 7.0 Million tons

~5,900 employees

27 Production facilities

Source: Alpek estimate| Kta: Thousand tons per year | (1) Includes industrial and specialty chemicals and recycled PET capacities

Installed Capacity Breakdown (Kta)

SITE PTA PET rPET FIBERS PP EPS CPL OTHER

Mexico

(3,030 Kta)

Monterrey 160

Altamira 1,000 640 240

Salamanca 85

Ocotlán 10

Cosoleacaque 610 185

Lerma 100

U.S.

(2,385 Kta)

Cedar Creek 170 55

Cooper River 170 150

Columbia 640 725

Pearl River 430

Richmond 45

Canada Selenis 144

Argentina

(225 Kta)

Zárate 190

Pacheco 15

General Lagos 19

Brazil

(1,226 kta)

Guaratingueta 46

Ipojuca 640 450 90

Chile

(27 Kta)

Santiago 5

Puerto Montt 2

Concon 20

Total Capacity: 7,036 Kta 2,890 2,464 115 400 640 325 85 117

33

Strategy

Strengthen Core Business

Growth

ProductSustainability

Strengthen Core Business

• Improve cost competitiveness in existing plants

• Enhance position in the Americas

• Ensure competitive feedstock/power supply

Growth

• Deliver returns on recent investments

• Growth into adjacent markets / Vertical integration

• Strategic and opportunistic M&A

ProductSustainability

• Expand PET recycling capacity

• Support growth of circular economy initiatives

34

57

16

PET Other Plastics

37

182 187

GlassPET Aluminum ’00 ’15 ’19E’05 ’10

115

PET

Glass

Aluminum

27

90

#1 Recycling Collection Rate% Worldwide

Carbon Footprint Over Lifecycle1

(gr. CO2 Eq. / 355 mL Bottle)#1 Beverage Packaging MaterialBillion beverages (USA)

PET Fundamental Advantages

Source: Wood Mackenzie, McKinsey Co., PET Resin Association and SBAcci.35(1) Data from EPA and PET Resin Association considering bottle weight of containers. Includes emissions calculation for energy on processing and transportation, and non-energy related emissions; considers that material is

recycled once.

36

Multinational food company dedicated to bringing local favorite foods to communities everywhere

• +640,000 points of sale

• 11% of its sales came from innovation

2019

Revenues

US $6.5 Billion

EBITDA

US $703 Million

37

Highly recognized branded foods in Mexico, U.S., Central & South America and Europe

Region % Sales

LatAm8%

U.S.15%

Europe36%

Mexico41%

• Broad geographic footprint: 70 manufacturing facilities and operations in 18 countries

• Offers quality food at a wide range of price points and across diverse categories

Cooked meats 60%

Dairy 19%

Dry meats 16%

Other categories 5%

Categories products

Mexico

United States

Dominican Rep.

El Salvador

Guatemala

Ecuador

Italy

Belgium

Germany

Netherlands

Spain

France

Peru

Honduras

Nicaragua

Costa Rica

Portugal

Romania

38

Diversified and strong brand portfolio in each market

PACKAGED MEATS DAIRY OTHER THIRD PARTY

MEXICO

EUROPE

U.S.

LATAM

39

Broad supply chain network

Reach, service, efficiency and knowledge

• Global processes

• Benchmarks

• Best practice implementation

• Production sharing capabilities

Safety & quality throughout the supply chain

• Sourcing development programs and

certifications

• In-store quality checks

• Customer development programs

• Certified facilities

70

Production

facilities

25 Europe

13 Latam

26 Mexico

6 USA210

Distribution

centers

18 Europe

39 Latam

139 Mexico

14 USA640,000

Points of sale

62,000 Europe

111,000 Latam

345,000 Mexico

105,000 USA

40

Consumer oriented innovation

41

Health & Nutrition

Origin & Tradition

Indulgence

Convenience

Sustainability & Trust

Innovation Platforms

• Based on “Design Thinking”

• Consumer research (260K contacts/year)

• 2 Research & Development Centers (+200 specialists)

• Innovations represent 11% of sales

• +270 new products launchedin 2019

Growth strategy

Strengthen Core Business

• Continue consolidating recent acquisitions while implementing best practices

• Reinforce brand equity through innovation and differentiated marketing

• Increase distribution to improve market share

Expand the Core

• Capture greater market share in the foodservice market

• Fully leverage assets through distribution of third-party leading brands

• Achieve fair-share in relevant markets / categories

• M&A in packaged meats and dairy

• Grow exports of heritage products

Invest in the Future

• Explore new categories

• Enter new geographies

• Complement innovation capabilities through open innovation / venture capital

• Continue developing world class talent

42

43

Leading provider of lightweighting solutions for the automotive industry

• Global footprint, cost competitiveness, R&D, skilled labor force

• One out of every four new vehicles sold worldwide has at least one Nemak component

• Sole supplier in ~90% of sales volume

2019

Revenues

US $4.0 Billion

EBITDA

US $621 Million

44

Focused on broad portfolio of highly-engineered solutions

Combustion Engine• Heads

• Blocks

• Transmissions

Electric Vehicles• Battery Housings

• E-Motor Housings

Vehicle Structures• Longitudinal Members

• Sub-Frames

• Pillars & others

45

Diversified customer base

• More than 50 customers worldwide

• Nemak supplies ~650 out of ~1,300 vehicle

platforms worldwide

46

28%

19%

14%

13%

6%

5%

4%4%

3% 4%

Solid customer relationships; diversified revenue stream

North

America

56%

Europe

35%

Others

9%

2019Volume distributionBy Customer

2019Revenue distributionBy Region

47

Otros

Global footprint with facilities close to customers

16Countries

Russia

Slovakia

Spain

38Manufacturing facilities• North America (18)

• Europe (14)

• South America (3)

• Asia (3)

48

Combustion Engine Hybrid Pure Electric

US $450 – 500 US $480 – 580 US $550 – 700

Heads, Blocks & Trans Heads & Blocks E-Motor Housings

Structural Components Structural Components Structural Components

Battery Housings Battery Housings

Hybrid Trans Other EV Components

Driving Nemak content per vehicle

Increased value added to sales

49

Sample awarded programs involving electric vehicles and structural components

50

Porsche TaycanVolvo Polestar

BMW X5 Jeep Wrangler Hybrid

Ford Mustang Mach-E

$2,958 $2,955

$1,950

$2,880

$308 $309$260

$365

$0

$100

$200

$300

$400

$500

$600

$700

$800

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

2007 2008 2009 2010

Revenues

EBITDA

Headcount rightsizing

Optimization of work shifts

Increase equipment output

Volume reallocation

Key InitiativesSales vs. EBITDA

Revenues 2009 vs 2008: -34%EBITDA 2009 vs 2008: -16%

EBITDA Margin 10.4% 10.5% 13.3% 12.7%

Strong track record of agile cost structure adjustments and operating efficiencies to maximize profitability

51

Differentiated approach by business segment

Maximize combustion engine business

• Operational efficiencies

• Cash flow generation

• Capacity utilization & consolidation

• Margin expansion through increased secondary processes (e.g. machining)

Capture growth in structural & EV components

• Greater margins & value added

• New competencies

• Assembly

• Design engineering

52

53

IT and Telecom services for the enterprise and government segments

Main Services

Services:

• Managed networks

• System integration

• Collaboration

• Cloud solutions

• Cybersecurity

Infrastructure:

• Fiber to the Tower

• Fiber to the Data Center

• Spectrum

• Wholesale access

2019

Revenues

US $680 Million

EBITDA

US $265 Million

54

Sales and EBITDA Breakdown by Business Unit

80%Services

20%Infrastructure

1. Excludes Mass Market

EBITDASales 1

55

49%Services

51%Infrastructure

Strategic evolution

• Start up local Mass Market «Fixed Wireless»

• Avantel acquisition (´06)

• Broad band Mass Market

• Vertical markets

• Cloud services

• App management

• Data center

• Enterprise strategy

• Value added services – Data IP

• Start up LD services

ALESTRA CONVERGENCE

• Unified communications

• Managed networks

• Security

• Large Scale Solutions

• Systems integration

• Data center

• IPTV (´13)

• Cloud services & managed IT

1997

1999

2000

2008

2011

2008

2011

• Value added services Mass Market– Wimax

• Enterprise integration Telco / IT

• FTH

2015 2015

TELECOMM MARKET OPENED

IP PROTOCOL, INTERNET BUBBLE

VOICE AND DATA NET CONVERGENCE LAN/WAN

TELECOM / IT CONVERGENCE

DATA CENTER CONVERGENCE

MEGER 2016

56

2018

2019

• Sale of mass-market FTTH

business to Televisa and

Megacable • Data Center Partnership

REALIGNMENT PROCESS

Strategy: Strong Positioning in IT & Telecom

MISSIONEnable organizations to become more productive through digitalization

Provide world-class IT & Telecom managed solutions to enterprise and government customers

Multi-cloud solutions partnering with AWS & Microsoft Azure

Multi-platform Mobility Solution to complementICT services

Strategic Alliance with Global Data Center operator

Maximize value from non-strategic assets: Mass Market segment, alternate network

57

Network

Functional separation into two business units

Benefits:

• Accelerate growth – focusing commercial and investment efforts in each business unit

• Increase profitability – maximizing infrastructure utilization

• Better efficiencies - Transparency

Services (Alestra) Infrastructure

Telecom IT

Enterprise & Government

Wholesale/Operators(including Alestra Services)

58

59

Exploration & Production (E&P) operations in the U.S. and Mexico

• Involvement in the E&P industry began in 2006

• Operating mature fields in Mexico since 2013

2019

Revenues

US $76 Million

EBITDA

US $(91) Million1

60 1. 2019 EBITDA Includes US $63 M in non-cash provisions due to lower production outlook in the coming years

Current U.S. Operations – 613 wells

Technology

• Fracking for horizontal drilling

• Mature fields optimization

• World-class sub-surface analysis

capabilities

Net production(MBOED)

0.9 1.1 1.0

2.7

4.7

6.4

8.2 8.37.2

4.9 4.4

2.5

08 09 10 11 12 13 14 15 16 17 18 19

Involvement in the E&P industry began

in 2006

• JV with Ensign Natural Resources (8.6%)

• Development of Eagle Ford Shale with 554 wells in production

61

Activities in Mexico – 115 wells

• Service contracts in San Andrés and Tierra Blanca fields with Pemex (CIEPs)

• Producing over 3.2 MBOED

• Optimization of existing wells

• Development of new wells in conventional formation

• JV with Verdad Exploration, won contracts to operate two wet gas fields in Tamaulipas, Mexico

• Area of 363 Km2

• Minimum required investment of US $4 Million

62

Strategy

• Evaluate strategic alternatives for its assets outside of

Mexico

63

Index

ALFA Overview

ALFA Fourth Quarter Results

Appendix

Alpek – Petrochemicals

Sigma – Food Products

Nemak – Aluminum Autoparts

Axtel – IT & Telecom

Newpek – Oil & Gas

Other Information

64

1979Nemak is founded

2008Sigma invest in

Perú

ALFA's heritage goes back to 1890

2018Alpek acquires

PQS (Brazil)

1993 1997

ALFA Invest US $3,200 Million in modernization and expansion

2000Nemak invests in Canada

2005Hylsamex is divested

2005Nemak acquiresRautenbach

2007Nemak acquires Teksid and Hydro assets

2001Alpek expands

to the U.S.

1996Alestra is founded

(Telecom)

2004Sigma expands in cheese

2007Alpek acquires Eastman PET Mexico & Argentina

2010Sigma

acquires Bas-S

2013Sigma

acquires Campofrio

2016Alestra/Axtel

merger

2011Alpek acquires

Eastman Columbia and

Wellman

1890Brewery is founded

1974Grupo Monterrey

Splits

1975First investment in

petrochem

1980ALFA invest

in food

1982Mexican crisis and

financial restructuring

65

2019Alpek acquires a PET facility (UK)

& rPET plant (USA)

2019Alpek sells its Cogeneration Power Plants

ALFA Guidance 2020

(US $ Millions) Revenues EBITDA CAPEX

2019 2020e 2019 2020e 2019 A 2020e

ALFA 17,538 17,018 2,298 2,027 920 902

Alpek 6,216 5,677 850 547B 270 277

Sigma 6,463 6,780 703 650 186 180

Nemak 4,017 3,800 621 565 344 290

Axtel 680 638 265 322C 94 129

Newpek 76 33 -91 -7 14 14

Assumptions:

• Mx GDP growth: 1.2%• USA GDP growth: 1.7%• Eurozone GDP growth: 1.0%• Avg. exchange rate Mx Peso to USD: $20.20• Avg. exchange rate Euro to USD: $1.11• Avg. oil price (Brent): US $59/barrel.

A. CAPEX for 2019 includes acquisitions| B. Includes a US $30 million gain from U.K. plant acquisition announced in 4Q19| C. Includes a US $107 million gain from the sale of 3 Data Centers announced in 4Q1966

2020 Guidance Highlights

67

• All businesses actively engaged in efficiency initiatives to mitigate headwinds

• Consolidated sales reflect lower prices in Alpek and lower volume in Nemak

• EBITDA reflects:• Lower polyester and polypropylene margins (Alpek)

• Soft auto industry conditions (Nemak)

• Raw material price pressure due to ASF (Sigma)

• Consolidated CAPEX to remain above US $900 million• Investments in efficiencies, high-growth businesses and expansion

• Expected to enhance demonstrated EBITDA generation capacity in the upcycle

ALFA Guidance 2020 – Revenue

68

17,538 317-539 -217 -81 17,018

Δ vs. 2019

Key Assumptions

Alpek -539• Volume up 6% vs. 2019• Lower oil and feedstock prices

Sigma +317• Sales up in all regions driven by price

and volume

Nemak -217 • Volume down 5% vs. 2019

Axtel -42• Sales up 3% adjusting for currency and

discontinued operations

Newpek -43 • Lower production and prices

AlpekRevenue 2019

Sigma Nemak Revenue 2020e

Others*

*Axtel, Newpek and other businesses

-3%(US $ Millions)

(US $ Millions)

ALFA Guidance 2020 - EBITDA

69

Comparable EBITDA 2019

EBITDA 2019

Comparable EBITDA Var.

Comparable EBITDA 2020

EBITDA 2020e

2,298

-300

2,190

1,8902,027

Δ vs. 20191 Key Assumptions

Alpek -205• Decrease in polyester and PP margins• US $40 million less due to Cogen sale

Sigma -53• Pressure on raw material costs due to

ASF

Nemak -47 • Lower volume (soft industry conditions)

Axtel -15• EBITDA up 2% adjusting for currency

and discontinued operations

Newpek +21• Lower comparable loss vs. 2019 due to

adjusted cost structure

10730

Axtel – Gain from sale of 3 D.C. announced in 4Q19 (+107)

Alpek – Gain from UK acquisition announced in 4Q19 (+30)

1,890

108

-12%

Net extraord.

items

(US $ Millions)

(US $ Millions)

1Comparable 2019 vs. Comparable 2020e

2,190

ALFA Guidance 2020 - CAPEX

70

-6920 7 -54 35 902

AlpekCAPEX 2019

Sigma Nemak CAPEX 2020e

Others*

Δ vs. 2019

Key Assumptions

Alpek +7 • Expand PET recycling capacity

Sigma -6 • Investments across all regions

Nemak -54• Support product launches in e-mobility

and structural applications

Axtel +35• Frequency renovation and expand

infrastructure capabilities

Newpek 0 • Focus on Mexican operations

*Axtel, Newpek and other businesses

(US $ Millions)

(US $ Millions)

-2%

13

9

6

12

6

2015 2016 2017 2018 2019

ROIC 2015 - 2019

ROIC = NOPAT / Invested Capital | NOPAT = EBIT – Taxes | Invested Capital = Stockholder’s Equity + Debt 71

Breakdown by Region

Mexico

33%

U.S. & Canada

31%

Europe

22%

South & Central America

12%

Asia & Others

2%

Revenues 2019US $17.5 Billion

72

73

Debt Profile and maturities

Rate (%)Currency (%)

Var.

10%

Fix

90%

U.S.

73%

EUR

18%

MXN

6%

Other

3%

Debt maturities(US $ Million)

1,365

268115

824

421

2,311

780

1,064

94

614 559 506

CASH 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+

Debt maturities – 4Q19

Cash 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+

Alfa Holding Alpek Nemak Sigma Axtel Newpek Other

US $ Million Cash 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030+

ALFA Holding 26 - - - 50 500 - - - - - 500

Alpek 386 70 37 693 319 17 16 16 16 16 499 2

Nemak 327 127 34 28 22 592 543 24 31 50 60 5

Sigma 518 38 20 18 16 689 202 999 0 500 - -

Axtel 46 23 15 84 14 513 19 26 47 48 - -

Newpek - - - - - - - - - - - -

TOTAL* 1,365 268 115 824 421 2,311 780 1,064 94 614 559 506

Total Gross Debt plus interest:US $7,641 MillionAvg. Life of Debt 6.4 years

*Includes other entities74

Outstanding bonds - ALFA

75

Val

ue

90

95

100

105

110

115

120

125

31

/12

/20

18

14

/01

/20

19

28

/01

/20

19

11

/02

/20

19

25

/02

/20

19

11

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19

25

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19

08

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19

22

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19

06

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19

20

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19

03

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19

17

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19

01

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19

15

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19

29

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19

12

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19

26

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19

09

/09

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19

23

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19

07

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19

21

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19

04

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19

18

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/20

19

02

/12

/20

19

16

/12

/20

19

30

/12

/20

19

2044

2024

Outstanding bonds – ALFA Subsidiaries

Val

ue

Val

ue

76

Sigma

Axtel

Alpek

Nemak

90

92

94

96

98

100

102

104

106

31

/12

/20

18

14

/01

/20

19

28

/01

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19

11

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/20

19

25

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19

11

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19

25

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19

08

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19

22

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19

06

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19

20

/05

/20

19

03

/06

/20

19

17

/06

/20

19

01

/07

/20

19

15

/07

/20

19

29

/07

/20

19

12

/08

/20

19

26

/08

/20

19

09

/09

/20

19

23

/09

/20

19

07

/10

/20

19

21

/10

/20

19

04

/11

/20

19

18

/11

/20

19

02

/12

/20

19

16

/12

/20

19

30

/12

/20

19

2024

2025

9092949698

100102104106108110

31

/12

/20

18

14

/01

/20

19

28

/01

/20

19

11

/02

/20

19

25

/02

/20

19

11

/03

/20

19

25

/03

/20

19

08

/04

/20

19

22

/04

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19

06

/05

/20

19

20

/05

/20

19

03

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/20

19

17

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19

01

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19

15

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19

29

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19

12

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19

26

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19

09

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19

23

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19

07

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19

21

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19

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19

18

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19

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19

30

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19

2028

2024

2026

9092949698

100102104106108110

31

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18

14

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19

28

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19

11

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19

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19

25

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19

08

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19

22

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19

06

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19

20

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19

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17

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19

16

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19

30

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19

2023

2022

2029

90

92

94

96

98

100

102

104

106

31

/12

/20

18

14

/01

/20

19

28

/01

/20

19

11

/02

/20

19

25

/02

/20

19

11

/03

/20

19

25

/03

/20

19

08

/04

/20

19

22

/04

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19

06

/05

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19

20

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19

03

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/20

19

17

/06

/20

19

01

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/20

19

15

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/20

19

29

/07

/20

19

12

/08

/20

19

26

/08

/20

19

09

/09

/20

19

23

/09

/20

19

07

/10

/20

19

21

/10

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19

04

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19

18

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/20

19

02

/12

/20

19

16

/12

/20

19

30

/12

/20

19

2024

ALFA & Subsidiaries Outstanding Bonds

CompanyAmount(M US)

RateYTM

(29/Feb/2020)Maturity

Ratings

S&P Fitch Moody’s

Alfa 500 5.250% 2.971% March 25, 2024 BBB- ; SO BBB- ; SO Baa3 ; SO

Alfa 500 6.875% 4.892% March 25, 2044 BBB- ; SO BBB- ; SO Baa3 ; SO

Alpek 650 4.500% 2.678% November 20, 2022 BBB- ; SO BBB- ; SO Baa3 ; SO

Alpek 300 5.375% 2.951% August 08, 2023 BBB- ; SO BBB- ; SO Baa3 ; SO

Alpek 500 4.250% 3.810% September 10, 2029 BBB- ; SO BBB- ; SO Baa3 ; SO

Sigma €600 2.625% 0.719% February 02, 2024 BBB ; SO BBB ; SO Baa3 ; SO

Sigma 1,000 4.125% 3.069% May 02, 2026 BBB ; SO BBB ; SO Baa3 ; SO

Sigma 500 4.875% 3.362% March 22, 2028 BBB ; SO BBB ; SO Baa3 ; SO

Nemak 500 4.750% 2.521% January 11, 2025 BB+ ; SO BBB- ; SO Ba1 ; SO

Nemak €500 3.250% 4.168% February 28, 2024 BB+ ; SO BBB- ; SO Ba1 ; SO

Axtel 500 6.375% 5.529% November 14, 2024 BB ; PO BB- ; SO Ba3 ; SO

77

Stock Highlights (BMV: ALFAA)

78

Daily Average Traded Shares & Value

Daily Stock Price (MXN)

3

12

00

8

2

10

64

15

6 9

F M AJ A M J J A S O N SD J F M A J JM

2019

20

10

15

30

JunDecJan Jun Jan Dec

(M Shares) (US$ M)

2018 2019

Valuation 2017 2018 2019 Feb ‘20

Market Cap. (US$ B) 6,637 6,056 4,875 4,875

Net Debt (US$ M) 6,300 6,543 6,276 6,276

EBITDA LTM (US$ M) 2,018 2,858 2,298 2,298

Enterprise Value /

EBITDA7.0 4.8 5.4 5.4

Price / Earnings N/A 8.9 16.2 12.0

Price per Share

(MXN)24.7 23.0 18.6 13.4

Exchange Rate

(MXN/USD)18.9 19.2 19.3 18.7

2018

25

O N D

US 49%

EUR43%

Other 9%

US99%

MXN 0%

US100%

Debt by Currency

US61%EUR

29%

MXN 7%

US 65%

MXN35%

US $1,048 Million US $1,700 Million US $2,482 Million

US $1,515 Million US $789 Million

*Includes currency hedging

Other 2%

79

Debt by Fixed and Variable Interest Rate

Fix69%

Var31%Fix

87%

Var13%

Fix96%

Var4%

Fix95%

Var 5%

US $1,048 Million US $1,700 Million

US $1,515 Million US $789 Million

*Includes currency hedging80

Fix93%

Var7%

US $2,482 Million

Brent Crude Oil

120

100

80

60

40

202014 2015 2016 2017 2018 2019

US $/Bbl

Brent Crude Oil

99 $/bbl

53 $/bbl

44 $/bbl

54 $/bbl 71 $/bbl

64 $/bbl

81

201

74 71 69 63 59 71 64 63 60 72 80 81104

133 135 118 110155 140

PET Margin (Asia)

PTA

PET

2011

210

2012 3Q2015

258

2013 2014 1Q

260

4Q 1Q 2Q 3Q 4Q

478

4Q1Q2Q 3Q 1Q

394

270

2Q

230210

284

212240

276 263

342

377

324333

370

2Q

China

2016 2017 2018 2019

Margin: Asia PET to Px/MEG (US $/Ton)

250304

3Q

82

4Q

227

82

Pork Ham Price in Europe and U.S.

€/kgPork Ham Price in Europe

US $/lbPork Ham Price in U.S.

2018

2019

Feb. Mar. Jun. Aug. Sept. Dec.

83

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Feb.

0

0.2

0.4

0.6

0.8

1

1.2

Feb. Mar. Jun. Aug. Sept. Dec. Feb.

2019

2020

2018

2019

2019

2020

Contact

Hernán F. LozanoV.P. of Investor Relations & Corporate Communications

T. +52 (81) 8748 2521iralfa@alfa.com.mx