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4Q16

Webcast Presentation

This presentation has been prepared by Grupo KUO, S.A.B. de C.V. (“KUO” or the “Company”) solely for use at this presentation and has not been independentlyverified.

This presentation is being communicated only to persons who have professional experience in matters relating to investments and to persons to whom it may belawful to communicate it to (all such persons being referred to as relevant persons). This presentation is only directed at relevant persons and any investment orinvestment activity to which the presentation relates is only available to relevant persons or will be engaged in only with relevant persons. Solicitations resulting fromthis presentation will only be responded to if the person concerned is a relevant person. Other persons should not rely or act upon this presentation or any of itscontents.

You agree to keep the contents of this presentation strictly confidential. This presentation is highly confidential and contains proprietary and confidentialinformation about KUO, its subsidiaries, its financial results and its operations. This presentation material is being presented solely for your information and may notbe copied, reproduced or redistributed to any other person in any manner. At the request of KUO the recipient will promptly return all non-public material receivedfrom KUO (including this presentation) without retaining any copies thereof. No securities may be offered or sold in the United States absent registration or anexemption from registration under the U.S. Securities Act of 1933, as amended. KUO does not intend to register any of its securities for offer or sale in the UnitedStates or elsewhere, or to conduct a public offering of securities in the United States or elsewhere.

This presentation may contain “forward-looking statements” and actual results may vary from those expressed or implied. Such forward-looking statements can beidentified by the use of forward-looking terminology such as “anticipate,” “believe,” “considering,” “depends,” “estimate,” “expect,” “intend,” “plan,” “planning,”“planned,” “project,” “trend,” and similar expressions. All forward-looking statements are the Company's current expectation of future events and are subject to anumber of factors that could cause actual results to differ materially from those described in the forward-looking statements. Caution should be taken with respect tosuch statements and you should not place undue reliance on any such forward-looking statements. Factors that could affect these results include those mentioned inthe company’s filings with the Mexican Authorities and/or Regulators as well as the offering circular for the Company´s proposed offering of debt securities.

No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the informationpresented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives accept any responsibility whatsoever for any lossor damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of thedate hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives makeany undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.

Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly,the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change basedon various factors. The use of registered trademarks, commercial trademarks and logos or photographic materials within this document are exclusively for illustrativepurposes and are not meant to violate the rights of the creators and/or applicable intellectual property laws.

This presentation does not constitute an offer or invitation to purchase or subscribe for any debt securities or other securities of the Company and neither any part ofthis presentation nor any information or statement contained herein shall form the basis of or be relied upon in connection with any contract or commitmentwhatsoever. Any decision to purchase securities in any offering of securities of the Company should be made solely on the basis of the information contained in theoffering document which may be published or distributed in due course in connection with any offering of securities of the Company, if any.

By participating in this presentation, you agree to be bound by the foregoing limitations.

Disclaimer

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Financial Highlights 4Q16

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REVENUE

EBITDA

+22.4%

+30.7%

+17.6%

+34.5% +36.0% -4.6%+13.0%

+38.5%+87.6%+58.4%

+120.8%

+310.8%

+54.5%

+104.8%

% Exports 95.6%100.0%45.0%31.4% 40.3% 12.2%51.2%

EBITDA Margin 22.6%7.8%15.4%13.9% 18.9% 11.2%10.7%

Note: Figures are expressed in million Mexican pesos in Combined Pro forma IFRS, considering the proportional consolidation method.

Financial Highlights 2016

Note: Figures are expressed in million Mexican pesos in Combined Pro forma IFRS, considering the proportional consolidation method.

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REVENUE

EBITDA

+17.6%

+30.2%+15.7%

+5.4%+21.0%

+11.6%

+13.8%

+19.8%+77.6%+40.2%

+31.7%

+112.2%

+62.1%

+23.8%

% Exports 93.3%96.3%44.1%30.8% 44.0% 11.8%52.3%

EBITDA Margin 19.4%12.4%13.6%12.7% 10.4% 11.5%11.9%

Debt (De-Risking)MM MXN

Balanced Capital Structure

*Calculated on US dollars, according to the compliance of credit agreements obligations

Debt Profile 4Q16MM USD

Note: Figures are expressed in Combined Pro forma IFRS, considering the proportional consolidation method.

5

4,479

5,608

3,998 3,729

5,206 5,500

4,316

6,029 6,607

7,037 6,950 6,601 6775

3.0 2.8

2.21.9 2.1 2.0 1.9

2.21.7 1.7 1.6 1.4 1.5

0.5

1.5

2.5

3.5

4.5

5.5

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 1Q16 2Q16 3Q16 4Q16

Net Debt Leverage Ratio

61 25

45 62

14

326

2017 2018 2019 2020 2021 2022

Ratios 2015* 2016*

Net Debt / EBITDA 1.7x 1.5x

Total Debt/ EBITDA 2.4x 2.5x

Interest Coverage Ratio 7.8x 7.1x

Weighted average cost of debt 6.0%

Average debt life 5 years

Debt in foreign currency 78.4%

Fixed Rate 69%

Rating S&P, Fitch BB

2016

49%

16%

16%

4%

9%6%

Pork Meat (PM)

Herdez Del Fuerte JV(HDF)

Transmissions (T)

Aftermarket (AM)

Synthetic Rubber JV (SR)

Polystyrene (P)

Ongoing Growth Projects

Pork Meat SBU• Increase installed capacity to double output & increase distribution channels

Transmissions SBU• Development of the infrastructure to produce components lines• Investments in DCT product line

Herdez Del Fuerte JV• Investments for the Distribution Center expansion at Los Mochis, Sinaloa• Investments to improve capacity at MegaMex operations in USA

Capital Allocation

CAPEX CAPEX

16%84%

Maintenance Growth

PM

HDF

T

AM

SR

P

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Business Portfolio/ Revenue BreakdownKUO

Consumer Chemical

Automotive

7

58%

42%

Pork Meat Herdez Del Fuerte JV

51%

49%

Synthetic Rubber JV Polystyrene

47%

32%

21%

Consumer Chemical Automotive

60%

40%

Transmissions Aftermarket

Business Portfolio/ EBITDA BreakdownKUO

Consumer Chemical

Automotive

8

56%

44%

Pork Meat Herdez Del Fuerte JV

55%

45%

Synthetic Rubber JV Polystyrene

46%

28%

26%

Consumer Chemical Automotive

72%

28%

Transmissions Aftermarket

• +30% Revenues +78% EBITDA

• Record Op Margin 10% & EBITDA Margin 13%

• Ongoing Plan to double entire business capacity by 2020

• 3% of Sales goes to US market

REVENUES EBITDA

$9,089 MM $1,153 MM

EXPORTSEBITDAMargin

Consumer

Note: Figures are expressed in Combined Pro forma IFRS, considering the proportional consolidation method. Full year 2016 figures.

13%

9

(of total SBU sales)

OperatingMargin

10%

Business Highlights

Pork Meat

Herdez Del Fuerte JV

REVENUES EBITDA

$6,645 MM $900 MM

EXPORTSEBITDAMargin

14%


OperatingMargin

10%

Business Highlights


• Strong Op Margin 10% & EBITDA Margin 14%

• Ongoing expansion plans for new distribution facility


•Strong US consumer market

(of KUO consolidated sales) (of KUO consolidated EBITDA)


$5,419 MM $672 MM

EBITDAMargin

Chemical

12%

10


OperatingMargin

8%

Synthetic Rubber JV

Polystyrene

REVENUES EBITDA

$5,231 MM $541 MM

EXPORTSEBITDAMargin

10%


OperatingMargin

9%

Note: Figures are expressed in Combined Pro forma IFRS, considering the proportional consolidation method. Full year 2016 figures

REVENUES EBITDA EXPORTS


• Op Margin 8% & EBITDA Margin 12%


Business Highlights




Business Highlights


(of KUO consolidated sales)(of KUO consolidated EBITDA)

REVENUES EBITDA

$4,295 MM $831 MM

EXPORTS

EBITDAMargin

Automotive

19%

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OperatingMargin

14%

Transmissions

Aftermarket

REVENUES EBITDA

$2,862 MM $328 MM

EXPORTSEBITDAMargin

11%


OperatingMargin

9%

Note: Figures are expressed in Combined Pro forma IFRS, considering the proportional consolidation method. Full year 2016 figures

• Sole independent producer of dual clutch transmissions in North America

•+12% Revenues +62% EBITDA



Business Highlights




Business Highlights


(of KUO consolidated sales)(of KUO consolidated EBITDA)

Business Outlook

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TAILWINDS

Solid Financial Structure(Strongest in 10 years)

Revenues Diversification(High % Exports)

Porfolio Diversification

Leading Market Position

Balance between DomesticSales and Exports

HEADWINDS

Uncertainty on NAFTA Negotiation

Inflationary Pressures CouldUndermine DomesticConsumption

Market Volatility

Antonia Gutié[email protected]@kuo.com.mx+(52 55) 52.61.83.44

José Eduardo [email protected]@kuo.com.mx+(52 55) 52.61.80.00 ext. 3057

Investor Relations Contacts

www.kuo.com.mx

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