CORPORATEPRESENTATIONFirst 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
© 2019 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.
2 1Q19-v2.9
Index
ALFA Overview
ALFA Businesses
Alpek – Petrochemicals
Sigma – Food Products
Nemak – Aluminum Autoparts
Axtel – IT & Telecom
Newpek – Oil & Gas
Appendix
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
1979Nemak is founded
2008Sigma invest in
Perú
ALFA´s heritage goes back to 1890
2018Alpek acquires
PQS (Brazil)
1993 1997
ALFA Invest U.S. $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 USA
1996Alestra is founded
(Telecom)
2004Sigma expands in cheese
2007Alpek acquires Eastman PET Mexico & Argentina
2010Sigma
acquires Bas-S
2013Sigma
acquires Campofrío
2016Alestra/Axtel
merger
2011Alpek acquires
Eastman Columbia and
Wellman
5
1890Brewey is founded
1974Grupo Monterrey
Splits
1975Firs investment in
petrochem
1980ALFA invest
in food
1982Mexican crisis and
financial restructuring
ALFA participates in diverse industries
Leading Mexican supplier of managed solutions for
Information Technology
#1 in the production of PTA, PET and EPS in the Americas
12 Sigma brands sell more than U.S. $100 Million a year each
1 out every 4 new cars sold in the world contains at least one
Nemak product
555 production wells operated by Newpek in Texas and
Veracruz
Petrochemicals Food Products Aluminum Autoparts IT + Telecom Oil & Gas
6
Breakdown by Business Group
Revenues 2018U.S. $19.1 Billion
EBITDA 2018U.S. $2.9 Billion
37%
33%
25%
4% 1%
35%
24%
25%
15%
1%
7
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
Strategy aimed at driving long-term shareholder value
CORPORATE STRATEGY
Bottom-up strategy, subsidiary driven
Strategic investments
Enhance operational excellence
Long-term view
Long-standing independent board of directors
9
ALFA has grown to become a global company with leadership in markets
Manuf. Presence(Countries)
SalesOutside Mexico
Employees
2008 16 54% ~50,000
2018 28 70% ~86,000
10
M&A is an important element of our strategy
2010Sigma
Bar-S
2011Alpek
Columbia siteEastman Chemical
2011Alpek
Wellman
2013Sigma
CampofríoFood Group
2016Alestra
Axtel merger
2018Alpek
Petroquímica Suape and Citepe
2007Nemak
Teksid & HydroCasting assets
2005ALFA
DivestedHylsamex
2001Alpek
DAK Americas
11
Our leadership culture is the strongest driver of growth
• The average tenure of our top 125 Executives is of 23 years developing decision-making, consistent operations and accountability
• C - Suite average tenure of 33 years generating cohesion, consistency, trust and alignment
• Strong Corporate Governance with 85% of Independent Board of Directors
12
Experienced Management Team
Rolando ZubiránAxtel PresidentTenure 20 years
Mario PáezSigma PresidentTenure 44 years
Armando TamezNemak PresidentTenure 34 years
José de Jesús ValdezAlpek PresidentTenure 42 years
Paulino RodríguezVP Human CapitalTenure 15 years
Armando GarzaChairman of the BoardTenure 40 years
Álvaro FernándezPresidentTenure 27 years
Eduardo EscalanteCFOTenure 31 years
Carlos JiménezLegal CounselTenure 40 years
13
Financial Highlights
15,870 17,223
16,315 15,576
16,804
19,055 19,107
13 14 15 16 17 18 19E
Revenues
1,915 2,040
2,420 2,322
2,018
2,858
2,429
13 14 15 16 17 18 19E
EBITDA
1,556
1,422
1,632
1,492
1,148
1,570
979
13 14 15 16 17 18 19E
Capex
A. Guidance as of February 14, 2019 | B. Includes U.S. $427 Million from extraordinary items | C. Includes U.S. $200 Million from sale of Cogen plants
A B A, C A
14
Revenues(U.S. $ Million)
EBITDA(U.S. $ Million)
Capex & Acquisitions(U.S. $ Million)
Financial Highlights
3,473
5,123 4,785
5,844 6,300
6,543
7,194
13 14 15 16 17 18 1Q19
Net Debt
1.8
2.12.0
2.5
3.1
2.3
2.6
13 14 15 16 17 18 1Q19
Net Debt/EBITDA
6.77.2
7.7
6.6
4.6
5.8 5.7
13 14 15 16 17 18 1Q19
Interest Coverage
15
Net Debt(U.S. $ Million)
Net Debt/EBITDA Interest Coverage
U.S. $202 Million cash dividend, 21% higher than 2018
70
97 104 118
154 154 170 169 168
202
10 11 12 13* 14* 15 16 17 18 19
* The 2014 dividend was paid early in 2013. The graph shows the approved amounts for each corresponding year.
21%
Paid Dividends(U.S. $ Million)
16
ALFA Sustainability Model is based on four pillars
INTERNAL WELL-BEING
COMMUNITY
ECONOMY
ENVIRONMENT
146 ALFA facilities run on clean and renewable energy sources such as wind and geothermal
U.S. $67 Million invested in funding health, safety and employee development programs
19,500 students from 122 schools were benefited from ALFA´s support
More than 86,000 employees across 28 countries in America, Europe and Asia
In 2018, ALFA continued to deploy a broad program of actions in every aspect of its Sustainability strategy
17,000 people benefited through support to 168 institutions of social care
Nemak is the main consumer of recycled aluminum in Mexico, 80% of its aluminum usage comes from recycled sources
17
Lower-than-expected 1Q19 EBITDA amid challenging
oil/feedstock price environment
Acquired PET recycling facility in U.S. capacity of 45,000 tons
Year-over-year EBITDA growth driven by Mexico and U.S.
1Q19 Sales and EBITDA reflect this year’s anticipated volume
decrease in most regions
1Q19 EBITDA up 7% y-o-y when adjusted by 2018 sale of Mass Market business and towers
Results reflect lower production mainly due to
acreage sales in USA(Eagle Ford and Wilcox)
First Quarter 2019 Summarized Highlights
1Q19 EBITDA on track with full-year Guidance
Adoption accounting standard (IFRS16 Leases) caused U.S. $388 Million increase in Net Debt
Petrochemicals Food Products Aluminum Autoparts IT + Telecom Oil & Gas
18
First Quarter 2019 Recent Developments
Shareholder’sMeeting
Approved a U.S. $202 Million cash dividend, 21% higher than 2018, to be paid in two installments
Cancellation of 145 Million shares valued at U.S. $165 Million on that date
Approved a maximum amount of $5,800 Million Pesos (~U.S. $300 Million) for share repurchases
Appointment of ALFA’s eleventh Independent Board Member; 85% Independent Directors
19
20
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
2018
Revenues
U.S. $7.0 Billion
EBITDA
U.S. $1.1 Million
21
Business Segments
Polyester chain
2018
Revenues U.S. $5.2 Billion (74%)
EBITDA U.S. $788 Million (74%)
Products
Purified Terephthalic Acid (PTA)
Polyethylene Terephthalate (PET)
Polyester fibers
Plastics & chemicals
2018
Revenues U.S. $1.7 Billion (26%)
EBITDA U.S. $276 Million (26%)
Products
Polypropylene (PP)
Expandable Polystyrene (EPS)
Caprolactam (CPL)
Fertilizers and other chemicals
22
Products are widely used for food packaging and consumer end-markets
Beverage
Food
Personal care
Sample end users by industry
Volume 2018 By Industry(4,402 Kta)
Construction4%Textiles
7%
ConsumerGoods
22%
Food and Beverages67%
Sales 2018 Geography(U.S. $6,991 Million)
Asia & others1%
Europe3%
Latam18%
Mexico30%
U.S. 45%Canada
3%
Textiles
23
Installed capacity amounts to 7.0 Million tons
More than 5,800
employees
26 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
USA
(2,358 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
BrazilGuaratingueta 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
24
Strategy
Strengthen Core Business
Growth
ProductSustainability
Strengthen Core Business
• Ensure profitability throughout industry cycles
• Enhance position in the Americas
• Secure competitive feedstock/power supply
Growth
• Deliver returns on recent investments (U.S. $1 Billion)
• Vertical integration
• Strategic and opportunistic M&A
ProductSustainability
• Expand PET recycling capacity
• Enhance recycled content offering
• Support customer initiatives
25
First Quarter 2019 Highlights
Financial Highlights
• Volume – up 7% y-o-y, includes acquisitions, down on organic basis due to decline in oil and feedstock prices
• Revenue – up 7% y-o-y reflects higher volume and flat average prices
• EBITDA – both business segments report lower comparable EBITDA
Business Drivers/Impacts
• Lower oil and feedstock prices impact revenue and margins
• Positive contribution from Suapeand Citepe 2018 acquisition
2019 Outlook
• Lower average Brent prices
• Lower polypropylene margins
• Normalization of PET margins
• Proceeds from co-gen sale benefit EBITDA
26
First Quarter 2019 Recent Developments
Acquired aPET recycling plant
in the USA
Complements Alpek’s facilities in the USA and Argentina
M&G Mexico
Petitioned for “Concurso Mercantil”, including pre-arranged restructuring plan
Restructuring plan subject to court approval before implementation
Cogen SaleProgresses
Contour Global receives shareholder approval to complete transaction
Altamira power plant start-up process underway
27
28
Multinational food company dedicated to bringing local favorite foods to communities everywhere
• 640,000 points of sale
• 10% of its sales came from innovation
2018
Revenues
U.S. $6.3 Billion
EBITDA
U.S. $684 Million
29
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 59%
Dairy 18%
Dry Meats 18%
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
30
Diversified and strong brand portfolio in each market
PACKAGED MEATS DAIRY OTHER THIRD PARTY
MEXICO
EUROPE
USA
LATAM
31
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
26 Europe
13 Latam
25 Mexico
6 USA208
Distribution
centers
18 Europe
39 Latam
137 Mexico
14 USA+642,000
Points of sale
65,000 Europe
116,000 Latam
378,000 Mexico
83,000 USA
32
Product & Process Innovation
Consumer-driven innovation
• Extensive consumer research
• Proprietary mathematical models
• Sigma Innovation System
State-of-the-Art Research & Development center
• With +160 specialists
• Leadership in food process technology
R&D Alliances
• Research agreements with educational and governmental
institutions
• Open technology
33
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
34
First Quarter 2019 Highlights
Financial Highlights
• Revenue – down 2%, but up 2% on FX neutral basis. Mexico and Latamsales higher in local currency while USA and Europe were lower
• EBITDA – up 2% driven by margin improvement in Mexico, USA and Latam. Up 5% on FX neutral basis
Business Drivers/Impacts
• Key raw materials pricing varied by region
• Consumer confidence decreasing in USA and Europe but increasing in Mexico.
2019 Outlook
• Higher average prices across all regions
• Expected margin recovery in Europe
• Higher volumes across all regions
35
First Quarter 2019 Recent Developments
Raw MaterialsRecent rise in pork prices due to African Swine Fever
Working on different fronts to offset potential impact
ExchangeRate Hedges
Continued hedging strategy
• Covers 6 months of Mexico’s operations U.S. Dollar needs
New CFO
Roberto Olivares appointed new CFO
Eugenio Caballero appointed CEO Sigma Mexico, formerly CFO Sigma
36
37
The leading lightweighting solutions provider for the auto industry
• Global footprint, cost competitiveness, R&D, skilled labor force
• One out of every four new vehicles sold worldwide has at least Nemak component
• Sole supplier in ~90% of sales volume
2018
Revenues
U.S. $4.7 Billion
EBITDA
U.S. $734 Million
38
Focused on innovative lightweighting solutions for the automotive industry
Powertrain• Heads
• Blocks
• Transmissions
EV Components• E-Motor Housings
• Battery Housings
Structural Components• Longitudinal Members
• Shock Towers
• Cross Members
39
Diversified customer base
• More than 50 customers worldwide
• Nemak supplies ~650 out of 1,200 vehicle
platforms worldwide
40
Solid customer relationships; diversified revenue stream
North
America
56%
Europe
35%
Others
9%
2018Volume distributionBy Customer
2018Revenue distributionBy Region
28%
16%
11%6%
8%
4%
3%
3%
21%
Others
41
Global footprint with modern facilities near key customers
• Global footprint serving all major markets
• 38 manufacturing facilities strategically located close to customer sites
• North America (18)
• Europe (14)
• South America (3)
• Asia (3)
Canada
United States
Mexico
Brazil
Argentina
Spain
Germany
Hungary
Russia
Slovakia
Poland
Austria
Czech Republic
India
China
Turkey
42
Aluminum components expected to grow due to stricter environmental standards
North America and Europe Light Vehicle Aluminum Content(Pounds per vehicle)
2012
324
2015e
350
301
2009
24
2018e
426
2021e
475
2025e
380
Structural
Components
Others
Heat Transfers
Wheels & Brakes
Transmissions
Engine Blocks
Cylinder Heads
109
Source: Ducker, Nemak 43
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
44
Increased Value Added to Sales
Strategy
Maximize powertrain business
• Capture growth – aluminum penetration in blocks
• Focus on high complexity products
• Continue to increase efficiencies
• Increase machining – additional value added, margin expansion
Invest in development of structural components and parts for EVs
• High-growth segment
• Lightweighting key for EV performance
• Complex products
• Attractive profitability
45
First Quarter 2019 Highlights
Financial Highlights
• Volume – 12.1 Million equivalent units, down 8% as a result of softening industry conditions in most regions
• Revenue – down 11% due to a decrease in volume as well as depreciation of Euro vs U.S. Dollar
• EBITDA – down 11% due to lower volume and Euro depreciation vs U.S. Dollar
Business Drivers/Impacts
• Weaker sales in most regions
2019 Outlook
• Lower volume due to weaker industry trends in North America
• Adverse impact of phasing in new emission testing and lower diesel sales in Europe
46
First Quarter 2019 Recent Developments
New Contracts
New contracts awarded to supply cylinder heads and engine blocks in all regions
• Worth approximately U.S. $200 Million in annual revenues
• Half of the contracts represent incremental business
Electric VehiclesBroke ground on first assembly line for EV battery applications in North America
47
48
IT and Telecom services for the enterprise and government segments
Main Services
• Data centers
• Information security
• Managed networks
• Consultancy services
• Systems integration
• Cloud services
• Internet
2018
Revenues
U.S. $809 Million
EBITDA
U.S. $422 Million
49
Diversified revenue stream; focused on the enterprise market
16%Government
66%Enterprise
9%Wireless
18%Mass Market
66%Telecom
17%IT
15%*FTTH
18%Mass Market
*FTTH: Fiber to the home50
By Market Segment
Sales Breakdown
By Type of Service
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
51
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
52
Functional Separation into two business units
53
Benefits:
Accelerate growth – focusing commercial and investment efforts in each business unit
Increase profitability – maximizing infrastructure utilization
Better efficiencies - Transparency
Services (Alestra) Infrastructure
Data Center Telecom ITNetwork
Enterprise & Government
Wholesale/Operators(including Alestra Services)
53
First Quarter 2019 Highlights
Financial Highlights
• Revenue – down 14% y-o-y due to partial divestment of Mass Market segment. On comparable basis up 1% or up 3% in Mexican Pesos
• EBITDA – was 21% lower than 1Q18, which included the U.S. $15 Million contribution from the Mass Market and U.S. $7 Million one-time gain from the tower sale
Business Drivers/Impacts
• Sale of Mass Market business
• New Administration – transition slower which impacts Government segment business
• FX impact on U.S. Dollar
2019 Outlook
• Positive outlook for Enterprise segment based on strong project pipeline from customers
54
First Quarter 2019 Recent Developments
Mass MarketDivestment
Seeking to divest remainder of Mass Market business
Data CenterMonetization
Plan to monetize a majority stake of its Data Centers
Plan to splitbusiness in two
units:Infrastructure
and Service
Split expected to unlock Shareholder value maximizing infrastructure utilization
• Infrastructure Business: Own majority of Axtel’s assets, including Data Centers and fiber networks. Provide connectivity and internet to wholesale, operators and Axtel´s Service Business
• Service Business: Managed telecom and IT solutions to Enterprise and Government customers
55
56
Exploration & Production (E&P) operations in the U.S. and Mexico
Involvement in the E&P industry began in 2006
• JV with Pioneer (8.6%)
• Development of Eagle Ford Shale
Operating mature fields in Mexico since 2013
• Service contracts with Pemex (CIEPs)
57
14 7 8
30
66
91
116
40
9 3
31
08 09 10 11 12 13 14 15 16 17 18
Current U.S. Operations
Talent
• Team of experience people in the
USA
• World-class partners (e.g. Pioneer
Natural Resources)
Technology
• Fracking for horizontal drilling in
Eagle Ford – 555 wells in operation
• Mature fields optimization
• World-class sub-surface analysis
capabilities
Successful transition to operations
• Experienced transition to operations
• Mineral rights on leases over 220,000
acres
Newpek fields
KS
TX
OK
CO
Eagle Ford
EBITDA(U.S. $ Million)
0.9 1.1 1.0
2.7
4.7
6.4
8.2 8.37.2
4.9 4.4
08 09 10 11 12 13 14 15 16 17 18
Net production(MBOED)
58
Activities in Mexico
• Service contracts in San Andrés and Tierra Blanca fields
• Producing over 3.4 mboed on 131 wells
• Optimization of existing wells
• Development of new wells in conventional formation
• In a JV with Verdad Exploration, won contracts to operate two wet gas fields in Tamaulipas, Mexico
• Area of 363 Km2
• Minimum required investment of U.S. $4 Million
59
Strategy
• Divest assets outside of Mexico
• Continue to assess opportunities in Mexico
• Find unique opportunities in current market
• Migrations and farm-ins
• Leverage partnerships
• Evaluate infrastructure investments
60
First Quarter 2019 Highlights
Financial Highlights
• Volume - down 39% due to divestments in Eagle Ford Shale and Wilcox field
• Revenue – down 31% due to lower volume
• EBITDA loss due to lower production
Business Drivers/Impacts
• Divestment in the Eagle Ford Shale and Wilcox Field
• Natural decline in well productivity
2019 Outlook
• Divesting USA assets will result in lower production and sales
61
First Quarter 2019 Recent Developments
Eagle Ford Shale Divestiture
Seeking to divest the remaining Eagle Ford acreage
62
Appendix
63
ALFA Guidance 2019A
(U.S. $ Millions) Revenues EBITDA CAPEX
2018 2019e 2018 2019e 2018B 2019e
ALFA 19,055 19,107 2,858C 2,429D 1,570 979
Alpek 6,991 7,248 1,063 918 827 310
Sigma 6,336 6,679 684 735 180 194
Nemak 4,704 4,377 734 620 403 320
Axtel 809 641 422 217 117 122
Newpek 108 54 31 (3) 21 29
Assumptions:
• Mexico GDP growth: 1.7%
• USA GDP growth: 2.3%
• Eurozone GDP Growth: 1.8%
• Avg. exchange rate Mx Peso to U.S: $20.60
• Avg. exchange rate Euro to U.S.: $1.18
• Avg. oil price (Brent): U.S. $68/barrel
A. Guidance as of February 14, 2019 | B. CAPEX for 2018 includes acquisitions | C. Includes U.S. $427 Million from extraordinary items | D. Includes U.S. $200 Million from sale of Cogen plants 64
Breakdown by Region
Mexico
32%
USA & Canada
31%
Europe
21%
South & Central America
10%
Asia & Others
6%
Revenues 2018U.S. $19.1 Billion
65
Debt Profile and maturities
Rate (%)Currency (%)
Var.
18%
Fix
82%
U.S.
72%
EUR
16%
MXN
10%
Other
2%
Debt maturities(U.S. $ Million)
*Includes currency hedging
1,3241,221
385494
878
375
2,316
609
1,038
61
561 509
CASH 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+
66
Debt maturities – 1Q19
Cash 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+
Alfa Holding Alpek Nemak Sigma Axtel Newpek Other
U.S. $ Million Cash 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029+
ALFA Holding 166 50 50 0 0 0 499 0 0 0 0 498
Alpek 230 706 200 402 729 313 13 12 12 12 12 2
Nemak 253 163 70 36 35 35 618 579 3 2 2 8
Sigma 542 280 34 18 20 13 673 0 998 0 500 0
Axtel 50 22 22 30 95 13 513 18 24 47 47 0
Newpek 11 0 0 0 0 0 0 0 0 0 0 0
Other 0 0 8 8 0 0 0 0 0 0 0 1
1,324 1,221 385 494 878 375 2,316 609 1,038 61 561 509
Total Debt:U.S. $8,447 MillionAvg. Life of Debt 5.7 years
67
CompanyAmount(M USD)
RatePrice / YTM
(31/Mar/2019)Maturity
Current Rating
S&P Fitch Moody’s
Alfa 500 5.250% $104.5 / 4.2% 25 March 2024 BBB- ; SO BBB- ; SO Baa3 ; SO
Alfa 500 6.875% $108.7 / 6.2% 25 March 2044 BBB- ; SO BBB- ; SO Baa3 ; SO
Alpek 650 4.500% $101.4 / 4.1% 20 November 2022 BBB- ; SO BBB- ; SO Baa3 ; SO
Alpek 300 5.375% $104.6 / 4.2% 08 Agosto 2023 BBB- ; SO BBB- ; SO Baa3 ; SO
Sigma 250 6.875% $102.8 / 2.8% 16 December 2019 BBB ; SO BBB ; SO Baa3 ; SO
Sigma €600 2.625% €104.7 / 1.5% 07 February 2024 BBB ; SO BBB ; SO Baa3 ; SO
Sigma 1,000 4.125% $97.7 / 4.5% 2 Mayo 2026 BBB ; SO BBB ; SO Baa3 ; SO
Sigma 500 4.875% $99.8 / 4.9% 27 March 2028 BBB ; SO BBB ; SO Baa3 ; SO
Nemak 500 4.750% $97.8 / 5.2% 23 January 2025 BB+ ; SO BBB- ; SO Ba1 ; SO
Nemak €500 3.25% €101.5 / 2.8% 15 March2024 BB+ ; SO BBB- ; SO Ba1 ; SO
Axtel 500 6.375% $100.1 / 6.3% 14 November 2024 BB ; SO BB- ; SO Ba3 ; SO
ALFA & Subsidiaries Outstanding Bonds
68
USD52%
EUR41%
Other 7%
USD99%
MXN 1%
USD100%
USD0%
Debt by Currency
USD52%
EUR28%
MXN20%
USD63%
MXN37%
U.S. $1,097 Million U.S. $2,412 Million U.S. $2,537 Million
U.S. $1,551 Million U.S. $831 Million U.S. $0 Million
69
Debt by Fixed and Variable Interest Rate
Fix100%
Fix89%
Var11%
Fix81%
Var19%
Fix59%
Var41%Fix
91%
Var 9%
Var0%
U.S. $1,097 Million U.S. $2,412 Million U.S. $2,537 Million
U.S. $1,551 Million U.S. $831 Million U.S. $0 Million
70
Brent Crude Oil
71
120
100
80
60
40
202014 2015 2016 2017 2018 2019
Guidance 2019($68/bbl)
U.S. $/Bbl
Brent Crude Oil
99 $/bbl
53 $/bbl
44 $/bbl
54 $/bbl 71 $/bbl
PET Margin (Asia)
PTA
PET
201
74 71 69 63 59 71 64 63 60 72 80 81104
133 135 118 110
2011 2Q2015 1Q3Q2012 1Q2014 4Q 1Q
263
212
2Q
210
3Q 4Q 2Q2013 4Q 1Q
394
258270
230210
260240
342
276 284
478
377
333 323
3Q
China250
2016 2017 2018 2019
Margin: Asia PET to Px/MEG (U.S. $/Ton)
72
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2018 2019
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sept. Oct. Nov. Dec.
Pork Ham Price in USA
73
U.S. $/UnitPork Ham Price in USA