ALFA, S.A.B. DE C.V.

FIRST QUARTER 2017 FINANCIAL REPORT ALFA REPORTS 1Q17 EBITDA OF U.S. $528 MILLIONMonterrey, N.L., Mexico, April 24, 2017.- ALFA, S.A.B. de C.V.(ALFA),aleadingMexicanindustrialcompany,reportedtodayits1Q17unauditedfinancialresults.TotalrevenueswereU.S.$3,997million,up5%year-on-yearprimarilyduetohigherpetrochemicalfeedstocksandaluminumprices.EBITDAwasU.S.$528million,down9%vis-à-vis1Q16,mainlyexplainedby lowermargins forpolypropylene, adverse metal lag in Nemak and higher rawmaterialcostsatSigma.

Alvaro Fernandez, ALFA’s President, commented on theCompany’s results: “Overall 1Q17 resultswere generally in linewith guidance provided last quarter as ALFA continued to faceunfavorable market and economic conditions marked byuncertaintyandhighvolatility.Alpek’sresultsweresupportedbybetter-than-expected performance in Plastics & Chemicals andhigheroilprices;SigmawasaffectedbyongoingstartupcostsinEurope and higher raw materials; Nemak’s volume growth

couldn’tcompensatetheeffectofnegativemetalpricelag,whileAxtel’senterprisebusinessprovidedasolidbaseforgrowth”.

ConsolidatedcapitalexpendituresandacquisitionsamountedtoU.S. $297million during 1Q17.NetDebt at the quarter end ofU.S. $6,359millionwas 3% higherwhen compared to theU.S.$6,145millionin1Q16.Attheendofthequarter,financialratioswere: Net Debt to EBITDA: 2.8 times; Interest Coverage: 6.1times.

MajorityNetIncomewasU.S.$154millionin1Q17,comparedtoU.S.$142millionin1Q16.Thisyear-on-yearincreaseismainlytheresult of lower operating results but higher ComprehensiveFinancing Income (“CFI”) due to higher foreign exchange gainsstemmingfromtheappreciationofthepesoduringthequarter.

SELECTEDFINANCIALINFORMATION(U.S.$MILLION)

1Q17 4Q16 1Q16CH.%

VS.4Q16CH.%

VS.1Q16CONSOLIDATEDREVENUES 3,997 3,874 3,810 3 5Sigma 1,350 1,438 1,354 (6) -Alpek 1,293 1,183 1,182 9 9Nemak 1,123 996 1,076 13 4Axtel 181 191 147 (5) 23Newpek 26 27 25 (4) 3

CONSOLIDATEDEBITDA1 528 540 580 (2) (9)Sigma 135 166 163 (19) (17)Alpek 158 133 171 19 (8)Nemak 190 186 209 2 (9)Axtel 58 46 48 26 21Newpek (2) 12 (2) (117) (30)

MAJORITYNETINCOME 154 (41) 142 360 8CAPITALEXPENDITURES&ACQ. 297 450 321 (34) (7)NETDEBT 6,359 5,844 6,145 (9) (3)NetDebt/LTMEBITDA* 2.8 2.5 2.5 LTMInterestCoverage* 6.1 6.6 7.5

*Times.UDM=Last12months1EBITDA=OperatingIncome+depreciationandamortization+impairmentofassets.CONTENTS:SummaryofGroups…2–AlfaFinancialTables…5–ALFAGroupsFinancialInformation…9

Thisreleasemaycontainforward-lookinginformationbasedonnumerousvariablesandassumptionsthatareinherentlyuncertain.Theyinvolvejudgmentswithrespectto,amongotherthings, futureeconomic,competitiveandfinancialmarketconditionsandfuturebusinessdecisions,allofwhicharedifficultor impossibletopredictaccurately.Accordingly,resultscouldvaryfromthosesetforthinthisrelease.Thereportpresentsunauditedfinancialinformation.FiguresarepresentedinMexicanpesosorU.S.Dollars,asindicated.Whereapplicable,pesoamountsweretranslatedintoU.S.Dollarsusingtheaverageexchangerateofthemonthsduringwhichtheoperationswererecorded.FinancialratiosarecalculatedinU.S.Dollars.Duetotheroundingupoffigures,smalldifferencesmayoccurwhencalculatingpercentchangesfromoneperiodtotheother.

ALFA´S FIRST QUARTER 2017 2

SUMMARY OF GROUPS´ PERFORMANCE DURING 1Q17

Sigma’srevenuesamountedtoU.S.$1,350million,inlinewith1Q16.Thisincludesanimpactof13%depreciationofthe

pesoyear-on-year,onacurrencyneutralbasis,revenuesrose3%.Byregion,salesinMexicoincreased12%y-o-yinpesoterms,reflectingpriceadjustmentstoabsorbtheeffectofahigherexchangerateonrawmaterialcosts.Europeansalescontinuedtoimprove,increasing3%ineuroterms,LatinAmericaincreased3%indollarterms,whileUSsalesremainedsimilartolastyear.

Inlinewithguidance,Sigmareported1Q17EBITDAofU.S.$135million,down17%year-on-year,mainlyattributabletoaparticularlystrong1Q16andtheimpactofthePesodepreciationontheMexicanresultswhentranslatedintoU.S.dollars.Inaddition,thestart-upcostsofthenewBurgosplantinSpainandabaconfacilityintheU.S.,alsoimpactedresults.

During 1Q17, capital expenditures totaledU.S. $33million. Fundswereutilized for the finalizationof thenewplant inBurgos,Spain,otherfixedassetsandminorprojectsthroughoutthecompany.

Attheendof1Q17,NetDebtwasU.S.$1,838million,downU.S.$117millionfrom1Q16.Financialratiosattheendof1Q17were:NetDebttoEBITDA,2.9times; InterestCoverage,4.2times. Interestcoverage includesaonetimeU.S.$20millionfeeattributabletotheU.S.450millionbondprepayment.Excludingtheseeffects,andconsideringSigma´snewcostofdebt,interestcoveragewouldbe6.6times.

(Seeappendix“A”formorecomprehensiveanalysisofSigma´s1Q17financialresults)

Alpek’s1Q17revenuestotaledU.S.$1,293million,up9%year-on-yeardrivenmainlybyhigheraverageconsolidated

prices in both business segments.While 1Q17 consolidated volumewas flat year-on-year, average consolidated pricesincreased10%.1Q17EBITDAwasU.S. $158million, down8%when comparedwith1Q16. Thisquarter’sConsolidatedEBITDAincludesaU.S.$26millionnon-cashinventorygain.Adjustingforinventorygains,comparableconsolidatedEBITDAwas U.S. $131million and U.S. $179million in 1Q17 and 1Q16, respectively. Comparable 1Q17 Consolidated EBITDAdecreased26%year-on-yearmainlyduetolowerPolypropylene(PP)andPETmargins,asanticipated.

Alpek’s 1Q17 capital expenditures were U.S. $76 million, with Altamira power cogeneration facility accounting forapproximately70%of totalcapex.Other investments includedthe75,000tonperyearEPScapacityexpansionandtheconstructionoftwopropylenestoragespheres.

Alpekobtainedallnecessarycorporateapprovals toacquire100%ofPetroquímicaSuapeandCitepefromPetrobras forU.S.$385million.Thisamount ispayableon theclosingdatewhich is still dependenton several customary conditionspending,includingapprovalbytheAdministrativeCouncilforEconomicDefense(CADE)inBrazil.

Net Debt as of the end of the quarter was U.S. $1,175 million, up 30% year-on-year, driven by the aforementionedinvestmentinstrategicprojects.Atquarterend,financialratioswereasfollows:NetDebttoEBITDA,1.8times;InterestCoverage,10.0times.

(Seeappendix“B”forAlpek´s1Q17financialreport)

Nemak´s 1Q17 sales volume reached 13.2million equivalent units, 2% higher than 1Q16, supported by stronger

volumesinEuropeandRestofWorldregions,morethanoffsettingadeclineinNorthAmerica,whichremainsaffectedbysoftness in thepassenger car segment.Volumegrowth alongwithhigher aluminumprices supported revenues,whichshowed a 4% year-over-year increase. 1Q17 EBITDA totaled U.S. $190million, down 9% year-on-year, mainly due to

ALFA´S FIRST QUARTER 2017 3

negativemetalpricelagandlowervolumesinNorthAmerica.EBITDAperunitwasU.S.$14.4in1Q17,downfromU.S.$16.2inthesameperiodlastyear.

CapitalexpendituresinthequarteramountedtoU.S.$143millionasthecompanycontinuedtomoveaheadwithstrategicprojects.Fundswereutilizedtocontinuetheexpansionofmachiningcapacity,aswellastheconstructionofanewfacilityinSlovakiaandexpansioninPoland.NetDebtattheendof1Q17totaledU.S.$1,349million,up2%from1Q16,reflectingthecapitalexpendituresduringtheperiod.Financialratiosin1Q17were:NetDebttoEBITDAof1.7times,andInterestCoverageof11.1times.

(Seeappendix“C”forNemak´s1Q17financialreport)

Axtel’s revenues in the first quarter totaledU.S. $181million, up 23%year-on-year, largely attributable to the full

consolidationofAxtel.Onapro-formabasisrevenuesdecreased10%mainlyreflectingthepesodepreciationintheperiod.However,inpesoterms,totalpro-formarevenuesincreased2%inthequarter,reflecting1%and6%growthinenterpriseand government segments, respectively, and flat mass-market segment results. Enterprise and government segmentrepresented79%ofrevenuesinthequarter.

1Q17EBITDAwasU.S.$58million,up21%year-on-year,explainedinpartbythefullconsolidationofAxtel.Onapro-formabasis,EBITDAincreased65%year-on-year,duetoadeclineinthelevelofmerger-relatedexpensesandtothesynergiesachievedfromthemergerwhichhavereducedduplicateoperatingexpenses.Inpesoterms,pro-formaEBITDAincreased85%year-on-year.

Capital expenditures totaled U.S. $42 million in 1Q17, including investments to provide last-mile access to connectcustomers, todeploy IT infrastructureandto further increasedatacentercapacity inQueretaro,Mexico.At theendof1Q17,NetDebtwasU.S.$1,021million,downU.S.$40millionyear-on-year.Financialratiosattheendof1Q17were:NetDebttoEBITDAratioof4.3timesandInterestCoverageof9.2times.

(Seeappendix“D”forAxtel´s1Q17financialreport)

Newpek’srevenuesweresimilartothesameperiodintheprioryear,ashigheroilandgaspricesoffsetadeclinein

production.WestTexasIntermediate[WTI]Oilpricewasup56%from1Q16,averagingU.S.$52perbarrel,andHenryHubnaturalgaspriceincreased52%toanaverageofU.S.$3permillionBTU.

Newpek´sproductionintheU.S.averaged5.1millionbarrelsofoilequivalentperday(MBOED)during1Q17,down41%from1Q16.Withimprovedpricing,drillingandcompletionactivitiesresumedatEagleFordShaleduringthequarterwithfourwellsdrilled.Firstproductionfromthenewwellsisexpectedduring2Q17,andatotalof20newwellsareexpectedtobeputonproductionduringtheyear.InMexico,productionaveraged3.7MBOEDduring1Q17,up3%from1Q16.

1Q17 revenues totaledU.S. $26million, up3%year-on-year,while EBITDAwasnegativeU.S. $2million, similar to thenegativeU.S.$1.5millionin1Q16.CapitalexpendituresinthequarteramountedtoU.S.$4million.

(Seeappendix“E”formorecomprehensiveanalysisofNewpek´s1Q17financialresults)

CONSOLIDATED FINANCIAL RESULTS 1Q17 consolidated revenueswereU.S. $3,997million, up 5% fromU.S. $3,810million reported in 1Q16. The increasemainlyreflectshigherrawmaterialspricesforAlpek(oil-relatedfeedstocks)andNemak(aluminum),andthefullquarterconsolidationofAxtel.Duringthequarter,foreignsalesrepresented65%ofthetotal,inlinewith1Q16.

ALFA´S FIRST QUARTER 2017 4

1Q17ConsolidatedOperatingIncometotaledU.S.$293million,down22%from1Q16,primarilyattributabletoincreasingcommoditycostsandadverseFXatthebeginningofthequarterimpactingSigma;areversalofmetallageffectinNemak,whichreversedfrompositivetonegativeyear-on-year,andlowerPPmarginsinAlpek,whencomparedtoahistorically-highPPmarginin1Q16.

1Q17EBITDAwasU.S.$528million,down9%year-on-year,reflectingthelowerOperatingIncomeexplainedabove.

ALFAreported1Q17ComprehensiveFinancing Income(CFI)ofU.S.$118million,comparedtoComprehensiveFinancialExpenseofU.S.$107millionin1Q16,mainlyexplainedbyhigherforeignexchangegainsduringthequarterresultingfromthe9%appreciationofthePesoduringtheperiod.

MajorityNet IncomewasU.S.$154million in1Q17,compared toU.S.$142million in1Q16.This year-on-year increase ismainlyexplainedbyloweroperatingresultsbuthigherComprehensiveFinancingIncome(“CFI”)duetohigherforeignexchangegains

stemmingfromtheappreciationofthepesoduringthequarter.

CAPITAL EXPENDITURES AND ACQUISITIONS; NET DEBT ConsolidatedcapitalexpendituresandacquisitionstotaledU.S.$297million in1Q17.Allsubsidiariescontinuedtomakeprogressontheirinvestmentplansasdiscussedintheinitialsectionofthisreport.Atquarter-end1Q17,ALFA’sNetDebtamountedtoU.S.$6,359million,U.S.$214millionhigherthan1Q16.Attheendofthequarter,financialratioswere:NetDebttoEBITDA,2.8times;InterestCoverage,6.1times.Theseratioscompareto2.5timesand7.5timesin1Q16.

ALFA´S FIRST QUARTER 2017 5

ALFATABLE1|VOLUMEANDPRICECHANGES(%)

1Q17vs. 4Q16 1Q16

TotalVolume 3.7 8.6DomesticVolume 2.9 18.1ForeignVolume 4.6 0.8Avg.Ps.Prices 2.3 9.2

Avg.U.S.$Prices (0.5) (3.4)

TABLE2|REVENUES

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16TOTALREVENUES Ps.Millions 81,381 76,713 68,628 6 19U.S.$Millions 3,997 3,874 3,810 3 5

DOMESTICREVENUES Ps.Millions 28,344 27,213 23,873 4 19U.S.$Millions 1,393 1,373 1,326 1 5

FOREIGNREVENUES Ps.Millions 53,037 49,500 44,755 7 19U.S.$Millions 2,604 2,500 2,484 4 5Foreign/Total(%) 65 65 65

TABLE3|OPERATINGINCOMEANDEBITDA

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16OPERATINGINCOME Ps.Millions 5,977 3,734 6,761 60 (12)U.S.$Millions 293 192 376 53 (22)

EBITDA Ps.Millions 10,748 10,709 10,444 - 3U.S.$Millions 528 540 580 (2) (9)

TABLE4|COMPREHENSIVEFINANCING(EXPENSE)/INCOME(CFI)(U.S.$MILLIONS)

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16FinancialExpenses (131) (70) (109) (87) (20)FinancialIncome 9 9 9 (5) (2)NetFinancialExpenses (122) (61) (100) (102) (22)FxGains(Losses) 237 (127) 27 287 788PREvaluation 0 0 (34) - 100CapitalizedCFE 3 5 0 (35) 663CFE 118 (183) (107) 164 210Avg.CostofBorrowedFunds(%) 5.9 4.9 5.0

ALFA´S FIRST QUARTER 2017 6

ALFATABLE5|MAJORITYNETINCOME(U.S.$MILLIONS)

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16ConsolidatedNetIncome(Loss) 231 (54) 212 532 9MinorityInterest 77 6 70 1,225 10MajorityNetIncome(Loss) 154 (59) 142 360 8PerShare(U.S.Dollars) 0.03 (0.01) 0.03 361 9Avg.OutstandingShares(Millions) 5,112 5,121 5,121 TABLE6|CASHFLOW(U.S.$MILLIONS)

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16EBITDA 528 540 580 (2) (9)NetWorkingCapital&Others (265) 232 (387) (214) 32CapitalExpenditures&Acquisitions (298) (450) (321) 34 7NetFinancialExpenses (124) (60) (111) (107) (12)Taxes (53) (58) (122) 9 57Dividends(ALFA,S.A.B.) (170) 0 (172) - 1OtherSources/Uses (133) (105) (826) (27) 84Decrease(Increase)inNetDebt (515) 99 (1,360) (620) 62TABLE7|SELECTEDBALANCESHEETINFORMATION&FINANCIALRATIOS(U.S.$MILLIONS)

1Q17 4Q16 1Q16Assets 17,502 16,868 16,794Liabilities 12,581 11,999 11,937Stockholders’Equity 4,921 4,869 4,857MajorityEquity 3,659 3,667 3,645NetDebt 6,359 5,844 6,145NetDebt/EBITDA* 2.8 2.5 2.5InterestCoverage* 6.1 6.6 7.5*Times:LTM=Last12months

AppendixAALFA,S.A.B.deC.V.andSubsidiariesBALANCESHEETInformationinmillionsofNominalMexicanPesos

(%)Mar17vs.Mar-17 Dec-16 Mar-16 Dec16 Mar16

ASSETSCURRENTASSETS:Cashandcashequivalents 20,286 24,633 18,995 (18) 7Tradeaccountsreceivable 28,059 28,850 28,143 (3) (0)Otheraccountsandnotesreceivable 5,271 6,441 7,719 (18) (32)Inventories 41,186 40,923 35,062 1 17Othercurrentassets 10,788 10,921 8,542 (1) 26Totalcurrentassets 105,590 111,768 98,461 (6) 7

INVESTMENTSINASSOCIATESANDJOINTVENTURES 2,075 2,111 2,399 (2) (14)PROPERTY,PLANTANDEQUIPMENT 141,775 149,503 124,047 (5) 14INTANGIBLEASSETS 57,655 63,171 47,638 (9) 21OTHERNON-CURRENTASSETS 22,102 22,009 19,695 0 12

Totalassets 329,197 348,562 292,240 (6) 13LIABILITIESANDSTOCKHOLDER'SEQUITY

CURRENTLIABILITIES:Currentportionoflong-termdebt 479 2,614 3,928 (82) (88)Bankloansandnotespayable 11,297 6,193 5,502 82 105Suppliers 50,421 53,729 38,749 (6) 30Othercurrentliabilities 20,217 20,470 20,225 (1) (0)Totalcurrentliabilities 82,414 83,006 68,404 (1) 20LONG-TERMLIABILITIES:Long-termdebt 127,861 136,323 116,445 (6) 10Deferredincometaxes 14,998 16,228 12,282 (8) 22Otherliabilities 6,980 7,890 6,722 (12) 4Estimatedliabilitiesforsenioritypremiumsandpensionplans 4,392 4,502 3,875 (2) 13

Totalliabilities 236,644 247,950 207,728 (5) 14STOCKHOLDERS'EQUITY:Controllinginterest:Capitalstock 212 213 205 (1) 3

Contributedcapital 212 213 205 (1) 3Earnedsurplus 68,607 75,562 63,215 (9) 9Totalcontrollinginterest 68,819 75,776 63,421 (9) 9TotalNon-controllinginterest 23,734 24,837 21,091 (4) 13

Totalstockholders'equity 92,553 100,613 84,512 (8) 10Totalliabilitiesandstockholders'equity 329,197 348,562 292,240 (6) 13Currentratio 1.28 1.35 1.44Debttoequity 2.56 2.46 2.46

AppendixBALFA,S.A.B.DEC.V.andSubsidiaries

STATEMENTOFCOMPREHENSIVEINCOMEInformationinmillionsofNominalMexicanPesos

1Q17vs.(%)1Q17 4Q16 1Q16 YTD'17 YTD'16 4Q16 1Q16

Netsales 81,381 76,713 68,628 81,381 68,628 6 19

Domestic 28,344 27,213 23,873 28,344 23,873 4 19Export 53,037 49,500 44,755 53,037 44,755 7 19

Costofsales (64,555) (59,773) (52,584) (64,555) (52,584) (8) (23)

Grossprofit 16,826 16,940 16,044 16,826 16,044 (1) 5

Operatingexpensesandothers (10,849) (13,206) (9,283) (10,849) (9,283) 18 (17)

Operatingincome 5,977 3,734 6,761 5,977 6,761 60 (12)

Comprehensivefinancingexpense,net 2,269 (3,711) (1,946) 2,269 (1,946) 161 217

Equityinincome(loss)ofassociates 45 77 (12) 45 (12) (42) 477

Incomebeforethefollowingprovision 8,292 100 4,803 8,292 4,803 8,174 73

Provisionsfor:Incometax (3,639) (1,274) (1,018) (3,639) (1,018) (186) (257)

Consolidatednetincome 4,652 (1,173) 3,784 4,652 3,784 497 23

Income(loss)correspondingtominorityinterest 1,546 92 1,247 1,546 1,247 1,586 24

Netincome(loss)correspondingtomajorityinterest 3,106 (1,265) 2,538 3,106 2,538 346 22

EBITDA 10,748 10,503 10,444 32,545 10,444 2 3Interestcoverage* 6.6 6.6 7.4 6.6 7.4*LTM

ALFA´S FIRST QUARTER 2017 9

LUIS OCHOA +52 (81) 8748.2521

lochoa@alfa.com.mx

JUAN ANDRÉS MARTÍN

+52 (81) 8748.1676

jamartin@alfa.com.mx

MARCELA ELIZONDO

+52 (81) 8748.1223

melizondo@alfa.com.mx

MBS VALUE PARTNERS SUSAN BORINELLI+1 (646) 330.5907

susan.borinelli@mbsvalue.com

APPENDIX: A SIGMA 10 B ALPEK 13 C NEMAK 25 D AXTEL 33 E NEWPEK 42

ALFA´S FIRST QUARTER 2017 10

SIGMA | REFRIGERATED FOOD PRODUCTS 34% AND 26% OF ALFA´S REVENUES AND EBITDA IN 1Q17 Sigmaisaleadingmultinationalrefrigeratedfoodcompanythatproduces,marketsanddistributesqualitybrandedfoods,includingpackagedmeats, cheese, yogurt andother refrigeratedand frozen foods. Sigmahas adiversifiedportfolioofleadingbrandsandoperates67plantsin17countriesacrossitsfourkeyregions:Mexico,Europe,theUnitedStates,andLatinAmerica

INDUSTRY COMMENTS

During 1Q17, the consumer markets were mixed across Sigma’s main regions of operations. In Mexico, the averageconsumer confidence index reported by INEGI (Instituto Nacional de Estadística y Geografía – National Institute forStatistics and Geography) was down 17% year-on-year. As a result, 1Q17 same-store sales reported by the NationalAssociationofSupermarketsandDepartmentStores(ANTAD)increasedonly4%year-on-yearinnominalpesos.InEurope,accordingtotheEuropeanCommission,theaverageconsumerconfidenceindexfor1Q17wasanegative5.3,althoughthiswas35%higherthanin1Q16.IntheU.S.,theindexincreasedto125.6in1Q17asreportedbyTheConferenceBoard,thehighestsince2000.FoodretailsalesreportedbytheU.S.CensusBureauincreased3%year-on-year,abovethe1%year-on-yeargrowthin4Q16.

Keyrawmaterialpricesweremixedduringthequarterandvariedbyregion.IntheAmericas,thepriceofsomeofSigma’skeyrawmaterialsremainedbelow1Q16levels.Specifically,turkeybreastwas60%lower,whileporkhamswereatsimilarlevels.Bycontrast, turkeythighandmilkpriceswereup26%and19%,respectively,althoughtheywerestillbelowthelevelsobservedin2013and2014.InEurope,porkpricesincreasedduringthesecondhalfof2016andhavestayflatsince,causing1Q17pricestobe13%abovewhencomparedtothesameyear-agoperiod.InMexico,thestrengtheningoftheU.S. Dollar vis-a-vis the Peso has offset much of the potential cost savings from such favorable commodity priceenvironment,astheindustryparticipantsimportmostofitsmeatsfromtheU.S.

OPERATIONS

During1Q17,Sigmasoldapproximately413,000tonsoffoodproducts,up3%from1Q16,supportedbygrowthacrossallregions,withMexicoanotablestandout.Indollarterms,averagepricesdeclined3%year-on-yearaveragemainlyduetothestrongerU.S.Dollarexchangerate.

FINANCIAL RESULTS

1Q17RevenuestotaledU.S.$1,350million,inlinewith1Q16,affectedbythestrongerU.S.Dollaraverageexchangerate,whichrose13%year-on-yearagainsttheMexicanPeso.ExcludingtheFXimpact,revenuesincreased3%.InMexico,salesinpesoswere12%higheryear-on-year,reflectinghighersalesvolumesandpriceadjustmentstoabsorbhigherrawmaterialcosts.InEurope,salesinEuroswere3%above1Q16drivenbyhighersalesvolume.IntheU.S.,saleswereflat.

SalesinMexicoaccountedfor41%ofthequarter’stotal,whileEuroperepresented36%,theU.S.15%,andLatinAmerica8%.

Inlinewithguidance,OperatingIncomeandEBITDAwereU.S.$85millionandU.S.$135millionin1Q17,down28%and17%year-on-year,respectively.Thesedecreasesaremainlyexplainedbyastrongerthanusual1Q16resultsandtheeffectthatthedepreciationofthePesohasontheMexicanresultswhentranslated intoU.S.dollars. Inaddition,thestart-upcostsofthenewBurgosplantinSpainandabaconfacilityintheU.S.,alsoimpactedresults.

ALFA´S FIRST QUARTER 2017 11

CAPITAL EXPENDITURES AND ACQUISITIONS; NET DEBT During 1Q17, capital expenditures totaledU.S. $33million. Fundswereutilized for the finalizationof thenewplant inBurgos,Spain,otherfixedassetsandminorprojectsacrossthecompany.

Sigma´s consistent cash flowgenerationhasallowed it to financecapitalexpendituresand tomaintaina solid financialposition.Attheendof1Q17,NetDebtwasU.S.$1,838million,downU.S.$117millionfrom1Q16.Financialratiosattheendof1Q17were:NetDebttoEBITDA,2.9times;InterestCoverage,4.2times.Theseratioscomparewiththosereportedin1Q16,of2.2timesand8.9times,respectively.

OnFebruary2,2017,Sigmaissueda144ª,RegulationSbondintheEuropeanmarketfor600millionEuros.Thesecurityhasa2.625%couponandamaturityofsevenyears.Proceedsfromthistransactionweremainlyusedtorefinancedebt.

ALFA´S FIRST QUARTER 2017 12

SIGMA

TABLE1|VOLUMEANDPRICECHANGES(%)

1Q17vs. 4Q16 1Q16

TotalVolume (2.8) 2.9Avg.Ps.Prices (0.9) 9.4Avg.U.S.$Prices (3.4) (3.2)TABLE2|REVENUES

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16TOTALREVENUES Ps.Millions 27,462 28,521 24,388 (4) 13U.S.$Millions 1,350 1,438 1,354 (6) -

DOMESTICREVENUES Ps.Millions 11,370 11,484 10,172 (1) 12U.S.$Millions 559 579 565 (3) (1)

FOREIGNREVENUES Ps.Millions 16,092 17,037 14,216 (6) 13U.S.$Millions 791 859 789 (8) -Foreign/Total(%) 59 60 58

TABLE3|OPERATINGINCOMEANDEBITDA

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16OPERATINGINCOME Ps.Millions 1,709 2,095 2,117 (18) (19)U.S.$Millions 85 106 118 (20) (28)EBITDA Ps.Millions 2,738 3,295 2,929 (17) (7)U.S.$Millions 135 166 163 (19) (17)TABLE4|SELECTEDBALANCESHEETINFORMATION&FINANCIALRATIOS(U.S.$MILLIONS)

1Q17 4Q16 1Q16

Assets 4,951 4,876 4,976Liabilities 4,161 4,051 4,028Stockholders’Equity 790 825 949MajorityEquity 760 795 918NetDebt 1,838 1,724 1,955NetDebt/EBITDA* 2.9 2.6 2.3InterestCoverage* 4.2 5.5 8.9*Times:LTM=Last12months

First Quarter 2017 (1Q17) |

This release 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 could vary from those set forth in this release. The report presents unaudited financial information based on International Financial Reporting Standards (IFRS). Figures are stated in nominal Mexican pesos ($) and in current U.S. Dollars (U.S. $), as indicated. Where applicable, peso amounts were translated into U.S. Dollars using the average exchange rate of the months during which operations were recorded. Financial ratios are calculated in U.S. Dollars. Due to the rounding up of figures, small differences may occur when calculating percent changes from one period to the other.

Monterrey, Mexico. April 24, 2017 – Alpek, S.A.B. de C.V. (BMV: ALPEK)

Alpek reports 1Q17 EBITDA of U.S. $158 million

Selected Financial Information (U.S. $ Millions)

(1) Times: Last 12 months

Operating & Financial Highlights (1Q17)

Alpek

• 1Q17 Consolidated EBITDA of U.S. $158 million, including a U.S. $26 million non-cash

inventory gain

• U.S. $143 million cash dividend approved at Annual Shareholders Meeting; U.S. $72 million

paid in March

Polyester

• 1Q17 Polyester EBITDA of U.S. $87 million, including a U.S. $19 million non-cash inventory

gain

• Obtained all necessary corporate approvals to acquire PetroquimicaSuape and Citepe from

Petrobras; closing subject to approval from Brazilian authority (CADE)

Plastics &

Chemicals

(P&C)

• 1Q17 P&C EBITDA of U.S. $70 million, including an U.S. $8 million non-cash inventory gain

• Better-than-expected polypropylene and expandable polystyrene EBITDA, driven by favorable

January results

• 1Q17 caprolactam reference margins posted highest level since 2012

1Q17 4Q16 1Q16 4Q16 1Q16

986 970 988 2 -

Polyester 759 749 755 1 1

Plastics & Chemicals 227 221 234 3 (3)

1,293 1,183 1,182 9 9

Polyester 916 851 837 8 9

Plastics & Chemicals 376 332 345 13 9

158 133 171 19 (8)

Polyester 87 82 73 6 19

Plastics & Chemicals 70 52 99 34 (29)

87 28 72 214 20

76 75 32 1 137

1,175 1,042 904 13 30

1.8 1.6 1.4

10.0 10.5 11.3

(%) 1Q17 vs.

Consolidated EBITDA

Total Volume (ktons)

Consolidated Revenues

Net Debt/LTM EBITDA(1)

Interest Coverage(1)

Profit Attributable to Controlling Interest

CAPEX and Acquisitions

Net Debt

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 2

Message from the CEO

Plastics & Chemicals (P&C) segment performance and higher feedstock prices contributed to a better-than-

expected start this year. Alpek’s first quarter 2017 consolidated EBITDA was U.S. $158 million, down 8% versus 1Q16

and up 19% compared with the previous quarter.

1Q17 consolidated EBITDA benefited from a rising oil and feedstock price environment. For instance, the

average U.S. paraxylene contract price increased 20% and 10% versus 1Q16 and 4Q16, respectively. Also, the average

U.S. propylene contract price was up 52% year-on-year and 30% quarter-on-quarter.

Higher feedstock prices resulted in a U.S. $26 million non-cash inventory gain during this first quarter,

comprised of a U.S. $19 million gain in Polyester and an U.S. $8 million gain in P&C.

Polyester segment EBITDA was U.S. $87 million in 1Q17. Adjusting for non-cash inventory gains, Comparable

Polyester EBITDA was U.S. $69 million; in line with Alpek’s 2017 Guidance.

Comparable 1Q17 Polyester EBITDA was down 19% versus 1Q16 as moderate improvements in PTA, Fibers

and Cogeneration were more than offset by lower PET margins. In contrast, the 4% sequential increase in Comparable

segment EBITDA reflects a recovery after disruptions caused by Hurricane Matthew in 4Q16, as well as progress in

Selenis Canada Inc. which generated a smaller loss than in the previous quarter.

The combination of a recent upswing in caprolactam margins and favorable January figures in our

polypropylene (PP) and expandable polystyrene (EPS) businesses supported better-than-expected first quarter P&C

results. 1Q17 P&C EBITDA was U.S. $70 million and Comparable segment EBITDA was U.S. $63 million; above Alpek’s

2017 Guidance.

First quarter Comparable P&C EBITDA was down 34% versus the segment’s record 1Q16 figure, mainly due

to lower PP margins. However, sequential improvement across P&C products resulted in a 20% quarter-on-quarter

increase in Comparable 1Q17 P&C EBITDA.

Capex totaled U.S. $76 million in 1Q17, and is expected to reach U.S. $238 million by year-end as a result

of programmed strategic projects. The Altamira power cogeneration facility accounted for almost 70% of Alpek’s

first quarter Capex. Other investments included the 75,000 ton per year EPS capacity expansion in Altamira,

Mexico, and the completion of two propylene storage spheres.

In addition to the progress in organic projects, we obtained all necessary corporate approvals to acquire

100% of PetroquímicaSuape and Citepe from Petrobras for U.S. $385 million. This amount is payable on the closing

date which is still dependent on several conditions precedent, including approval by the Administrative Council for

Economic Defense (CADE) in Brazil.

As the acquisition process moves forward, we are working on several fronts that would reduce debt

financing for the potential transaction. Hence, a formal process to monetize our power cogeneration assets is

underway. We believe that acquiring the Brazilian assets, while preserving Alpek’s investment grade rating is in

our shareholder’s best interest.

Certain positive developments in our P&C segment and higher feedstock prices during 1Q17, partially

offset some of the headwinds we anticipated in the beginning of the year. However, we maintain our original

outlook for the remainder of 2017. Adjusting for non-cash inventory gains, 1Q17 Comparable Consolidated EBITDA

was U.S. $131 million or 26% of Alpek’s U.S. $502 million full-year EBITDA guidance.

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 3

Results by Business Segment

Polyester (Purified Terephthalic Acid (PTA), Polyethylene Terephthalate (PET), Polyester fibers – 71% of Alpek’s Net Sales)

Alpek’s first quarter 2017 Polyester revenues were up 9% year-on-year and 8% quarter-on-quarter, mainly

as a result of higher prices. Average 1Q17 Polyester prices increased 9% versus 1Q16 and 6% when compared with

4Q16, reflecting the recovery in crude oil and feedstock prices such as paraxylene (Px) and monoethylene glycol

(MEG). The average U.S. contract Px price reached its highest level since 3Q15.

1Q17 Polyester volume was up 1% when compared to 1Q16 and 4Q16. However, segment volume was lower

than expected as growth driven by the integration of Selenis Canada Inc. (PET) was partially offset by subpar PET

volume in Mexico and Argentina.

First quarter 2017 segment EBITDA was U.S. $87 million, including a U.S. $19 million non-cash inventory gain.

Adjusting for inventory gains, Comparable 1Q17 Polyester EBITDA decreased 19% versus 1Q16. As anticipated, the

year-on-year decline in U.S. PET margins more than offset moderate EBITDA growth in other parts of the Polyester

segment such as PTA, Fibers and Cogeneration. Comparable 1Q17 Polyester EBITDA increased 4% against the

previous quarter which was negatively impacted by unplanned shutdowns associated to Hurricane Matthew and a

higher EBITDA loss at Selenis Canada Inc.

Plastics & Chemicals (P&C) (Polypropylene (PP), Expandable Polystyrene (EPS), Caprolactam (CPL), Other products – 29% of Alpek’s Net Sales)

1Q17 P&C revenue was up 9% and 13% when compared to 1Q16 and 4Q16, respectively, as higher average

prices more than offset mixed volume figures. Average 1Q17 P&C prices increased 12% year-on-year and 10%

quarter-on-quarter driven by higher feedstock prices, mainly propylene and styrene.

First quarter 2017 P&C volume was down 3% versus 1Q16 and up 3% when compared to 4Q16. PP was the

main underlying driver, posting a volume decrease compared with its all-time high in 1Q16, while increasing versus

4Q16 which was negatively impacted by a multi-week planned maintenance shutdown as well as a weak propylene

price environment.

1Q17 P&C EBITDA totaled U.S. $70 million, including an U.S. $8 million non-cash inventory gain. Adjusting for

inventory gains, Comparable 1Q17 P&C EBITDA decreased 34% versus the segment’s record 1Q16 figure which was

boosted by peak PP margins. Since then, PP margins declined and appear to have stabilized in line with Alpek’s

estimations. Comparable 1Q17 P&C EBITDA was 20% higher than 4Q16 and above Alpek’s 2017 Guidance driven by

better-than-expected PP and EPS results in January as well as the recent upswing in CPL margins. 1Q17 CPL reference

margins posted their highest level since 2012.

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 4

Consolidated Financial Results

Net Sales: Net Sales for the first quarter totaled U.S. $1.3 billion, up 9% year-on-year and quarter-on-quarter,

mainly due to higher average consolidated prices in both business segments. Average 1Q17 consolidated prices

increased 10% and 7% when compared with 1Q16 and 4Q16, respectively. 1Q17 consolidated volume was flat

year-on-year and up 2% on a quarterly basis.

EBITDA: 1Q17 EBITDA was U.S. $158 million, down 8% when compared with 1Q16 and 19% higher than 4Q16. This

quarter’s Consolidated EBITDA includes a U.S. $26 million non-cash inventory gain. Adjusting for inventory gains,

Comparable Consolidated EBITDA was U.S. $131 million, U.S. $117 million and U.S. $179 million in 1Q17, 4Q16 and

1Q16, respectively. Comparable 1Q17 Consolidated EBITDA decreased 26% year-on-year mainly due to lower PP and

PET margins, as anticipated. The 12% increase versus Comparable 4Q16 Consolidated EBITDA was largely driven by

better-than-expected P&C segment results.

Profit (Loss) Attributable to Controlling Interest: Profit Attributable to Controlling Interest for the first

quarter of 2017 was U.S. $87 million, compared to U.S. $72 million and U.S. $28 million in 1Q16 and 4Q16,

respectively. 1Q17 Profit Attributable to Controlling Interest increased versus 4Q16 and 1Q16 as a higher Income Tax

was more than offset by a non-cash Fx gain following the recent appreciation of the Mexican Peso.

Capital Expenditures and Acquisitions (Capex): 1Q17 Capex was U.S. $76 million, compared to

U.S. $32 million and U.S. $75 million in 1Q16 and 4Q16 respectively. The majority of these funds were invested in the

350 MW power cogeneration plant in Altamira, Mexico. Other projects such as the EPS capacity expansion in

Altamira, Mexico and the construction of two propylene spheres advanced as planned.

Net Debt: Consolidated Net Debt as of March 31, 2017 was U.S. $1.175 billion, up 30% year-on-year and 13%

quarter-on-quarter. On an absolute basis, Net Debt increased U.S. $134 million during 1Q17. Dividends, CAPEX and

investment in Net Working Capital were among the largest cash flow line items in the first quarter. Consolidated

Dividends include U.S. $72 million paid to shareholders in March, as approved at Alpek’s Annual Shareholders

Meeting. Capex is associated to the ongoing development of strategic projects, mainly the Altamira power

cogeneration plant. Investment in Net Working Capital reflects a rising feedstock price environment. Gross Debt as

of March 31, 2017 was U.S. $1.301 billion, up 13% and 10% when compared to 1Q16 and 4Q16 respectively. 1Q17

Cash and Cash equivalents balance was U.S. $126 million. Financial ratios as of March 31, 2017 were: Net Debt to

LTM EBITDA of 1.8 times and Interest Coverage of 10.0 times.

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 5

Appendix A - Tables

TABLE 1 | VOLUME (KTONS)

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Total Volume 986 970 988 2 -

Polyester 759 749 755 1 1

Plastics and Chemicals 227 221 234 3 (3)

TABLE 2 | PRICE CHANGES (%)

(%) 1Q17 vs.

4Q16 1Q16

Polyester

Avg. Ps. Prices 9 23

Avg. U.S. $ Prices 6 9

Plastics and Chemicals

Avg. Ps. Prices 14 27

Avg. U.S. $ Prices 10 12

Total

Avg. Ps. Prices 11 24

Avg. U.S. $ Prices 7 10

TABLE 3 | INCOME STATEMENT (U.S. $ Millions)

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Total Revenues 1,293 1,183 1,182 9 9

Gross Profit 171 142 185 21 (7)

Operating expenses and others (48) (44) (47) (9) (2)

Operating income 123 98 138 26 (11)

Financial cost, net 17 (36) (16) 147 204

Share of losses of associates - - - - -

Income Tax (34) (29) (17) (16) (98)

Consolidated net income 106 33 105 222 1

Controlling Interest 87 28 72 214 20

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 6

TABLE 4 | REVENUES

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Total Revenues

Ps. Millions 26,339 23,428 21,292 12 24

U.S. $ Millions 1,293 1,183 1,182 9 9

Domestic Revenues

Ps. Millions 9,632 8,491 8,242 13 17

U.S. $ Millions 473 429 458 10 3

Foreign Revenues

Ps. Millions 16,707 14,937 13,050 12 28

U.S. $ Millions 820 754 724 9 13

Foreign / Total (%) 63 64 61

TABLE 5 | OPERATING INCOME AND EBITDA

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Operating Income

Ps. Millions 2,535 1,944 2,484 30 2

U.S. $ Millions 123 98 138 26 (11)

EBITDA

Ps. Millions 3,241 2,647 3,089 22 5

U.S. $ Millions 158 133 171 19 (8)

TABLE 6 | COMPARABLE EBITDA

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

EBITDA

Ps. Millions 3,241 2,647 3,089 22 5

U.S. $ Millions 158 133 171 19 (8)

Adjustments*

Ps. Millions (550) (327) 131 (68) (519)

U.S. $ Millions (26) (16) 7 (64) (467)

Comparable EBITDA

Ps. Millions 2,691 2,320 3,220 16 (16)

U.S. $ Millions 131 117 179 12 (26) *Adjustments: Inventory and non-operating, one-time (gains) losses

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 7

TABLE 7 | FINANCIAL COST, NET (U.S. $ Millions)

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Financial Expenses (18) (17) (19) (5) 7

Financial Income 4 4 5 (11) (23)

Net Financial Expenses (14) (13) (14) (11) 2

Fx Gains (Losses) 31 (23) (2) 233 1,924

Financial Cost, Net 17 (36) (16) 147 204

TABLE 8 | NET INCOME (U.S $ Millions)

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Consolidated Net Income 106 33 105 222 1

Non-Controlling Interest 19 5 32 264 (41)

Controlling Interest 87 28 72 214 20

Earnings per Share (U.S. Dollars) 0.04 0.01 0.03 214 20

Avg. Outstanding Shares (Millions)* 2,117 2,117 2,118 *For comparability are considered the same number of equivalent shares in the periods presented.

TABLE 9 | CASH FLOW (U.S. $ Millions)

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

EBITDA 158 133 171 19 (8)

Net Working Capital & Others (64) (84) (114) 23 43

Capital Expenditures & Acq. (76) (75) (32) (1) (137)

Financial Expenses (16) (16) (5) 2 (227)

Income tax (27) (22) (75) (21) 64

Dividends (88) (20) (135) (340) 35

Payment affiliated companies - 8 12 (99) (100)

Other Sources / Uses (20) (50) (5) 60 (319)

Decrease (Increase) in Net Debt (134) (127) (182) (5) 26

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 8

TABLE 10 | STATEMENT OF FINANCIAL POSITION & FINANCIAL RATIOS (U.S. $ Millions)

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Assets

Cash and cash equivalents 126 142 243 (12) (48)

Trade accounts receivable 582 542 512 7 14

Inventories 807 719 660 12 22

Other current assets 271 254 343 7 (21)

Total current assets 1,786 1,656 1,758 8 2

Investment in associates and others 29 28 27 5 9

Property, plant and equipment, net 2,028 1,970 1,824 3 11

Goodwill and intangible assets, net 571 575 509 (1) 12

Other non-current assets 227 200 96 14 135

Total assets 4,640 4,428 4,213 5 10

Liabilities & stockholders' equity

Debt 278 135 102 106 173

Suppliers 692 636 483 9 43

Other current liabilities 171 168 208 2 (18)

Total current liabilities 1,141 939 793 21 44

Debt 1,017 1,043 1,038 (2) (2)

Employees´ benefits 60 59 65 1 (8)

Other long term liabilities 372 367 349 1 7

Total liabilities 2,590 2,409 2,246 8 15

Total stockholders' equity 2,050 2,019 1,968 2 4

Total liabilities & stockholders' equity 4,640 4,428 4,213 5 10

Net Debt 1,175 1,042 904 13 30

Net Debt/EBITDA* 1.8 1.6 1.4

Interest Coverage* 10.0 10.5 11.3 * Times: last 12 months.

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 9

Polyester

TABLE 11 | REVENUES

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Total Revenues

Ps. Millions 18,670 16,862 15,087 11 24

U.S. $ Millions 916 851 837 8 9

Domestic Revenues

Ps. Millions 5,006 4,473 3,940 12 27

U.S. $ Millions 246 226 219 9 12

Foreign Revenues

Ps. Millions 13,663 12,389 11,147 10 23

U.S. $ Millions 670 625 618 7 8

Foreign / Total (%) 73 73 74

TABLE 12 | OPERATING INCOME AND EBITDA

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Operating Income

Ps. Millions 1,253 1,078 847 16 48

U.S. $ Millions 61 54 47 13 30

EBITDA

Ps. Millions 1,794 1,640 1,322 9 36

U.S. $ Millions 87 82 73 6 19

TABLE 13 | COMPARABLE EBITDA

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

EBITDA

Ps. Millions 1,794 1,640 1,322 9 36

U.S. $ Millions 87 82 73 6 19

Adjustments*

Ps. Millions (395) (327) 199 (21) (299)

U.S. $ Millions (19) (16) 11 (17) (272)

Comparable EBITDA

Ps. Millions 1,399 1,313 1,521 7 (8)

U.S. $ Millions 69 66 84 4 (19) *Adjustments: Inventory and non-operating, one-time (gains) losses

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 10

Plastics & Chemicals

TABLE 14 | REVENUES

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Total Revenues

Ps. Millions 7,670 6,566 6,205 17 24

U.S. $ Millions 376 332 345 13 9

Domestic Revenues

Ps. Millions 4,626 4,018 4,302 15 8

U.S. $ Millions 227 203 239 12 (5)

Foreign Revenues

Ps. Millions 3,044 2,548 1,903 19 60

U.S. $ Millions 149 129 106 16 41

Foreign / Total (%) 40 39 31

TABLE 15 | OPERATING INCOME AND EBITDA

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

Operating Income

Ps. Millions 1,282 898 1,654 43 (22)

U.S. $ Millions 62 45 92 37 (32)

EBITDA

Ps. Millions 1,447 1,039 1,784 39 (19)

U.S. $ Millions 70 52 99 34 (29)

TABLE 16 | COMPARABLE EBITDA

(%) 1Q17 vs.

1Q17 4Q16 1Q16 4Q16 1Q16

EBITDA

Ps. Millions 1,447 1,039 1,784 39 (19)

U.S. $ Millions 70 52 99 34 (29)

Adjustments*

Ps. Millions (154) - (68) (100) 129

U.S. $ Millions (8) - (4) (100) (100)

Comparable EBITDA

Ps. Millions 1,293 1,039 1,717 24 (25)

U.S. $ Millions 63 52 95 20 (34) *Adjustments: Inventory and non-operating, one-time (gains) losses

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 11

Appendix B – Financial Statements

Mar 17 Dec 16 Mar 16 Dec 16 Mar 16

ASSETS

CURRENT ASSETS:

Cash and cash equivalents 2,362 2,935 4,222 (20) (44)

Trade accounts receivable 10,939 11,191 8,914 (2) 23

Other accounts and notes receivable 3,503 3,626 2,397 (3) 46

Inventories 15,187 14,853 11,482 2 32

Other current assets 1,599 1,616 3,570 (1) (55)

Total current assets 33,590 34,221 30,585 (2) 10

Investment in associates and others 547 575 466 (5) 17

Property, plant and equipment, net 38,136 40,699 31,740 (6) 20

Goodwill and intangible assets,net 10,738 11,875 8,850 (10) 21

Other non-current assets 4,269 4,130 1,679 3 154

Total assets 87,280 91,500 73,320 (5) 19

LIABILITIES AND STOCKHOLDER'S EQUITY

CURRENT LIABILITIES:

Debt 5,228 2,787 1,772 88 195

Suppliers 13,009 13,151 8,404 (1) 55

Other current liabilities 3,216 3,469 3,625 (7) (11)

Total current liabilities 21,453 19,407 13,801 11 55

NON-CURRENT LIABILITIES:

Debt (include debt issuance cost) 19,134 21,551 18,062 (11) 6

Deferred income taxes 5,410 5,883 4,643 (8) 17

Other liabilities 1,592 1,710 1,436 (7) 11

Employees´ benefits 1,127 1,227 1,133 (8) (1)

Total liabilities 48,716 49,778 39,075 (2) 25

STOCKHOLDERS´ EQUITY:

Controlling interest:

Capital stock 6,048 6,048 6,049 - (0)

Share premium 9,071 9,071 9,071 - (0)

Contributed capital 15,119 15,119 15,120 - (0)

Earned surplus 19,155 21,954 14,417 (13) 33

Total controlling interest 34,274 37,073 29,537 (8) 16

Non-controlling interest 4,290 4,649 4,708 (8) (9)

Total stockholders´equity 38,564 41,722 34,245 (8) 13

Total liabilities and stockholders´ equity 87,280 91,500 73,320 (5) 19

ALPEK, S.A.B. DE C.V. and Subsidiaries

(%) Mar 17 vs.

STATEMENT OF FINANCIAL POSITION

Information in Millions of Mexican Pesos

First Quarter 2017 (1Q17) |

ir@alpek.com

www.alpek.com 12

ALPEK, S.A.B. DE C.V. and Subsidiaries

Information in Millions of Mexican Pesos

1Q17 4Q16 1Q16 4Q16 1Q16

Revenues 26,339 23,428 21,292 12 24

Domestic 9,632 8,491 8,242 13 17

Export 16,707 14,937 13,050 12 28

Cost of sales (22,826) (20,615) (17,957) (11) (27)

Gross profit 3,513 2,813 3,335 25 5

Operating expenses and others (978) (869) (851) (13) (15)

Operating income 2,535 1,944 2,484 30 2

Financial cost, net 317 (719) (290) 144 209

Share of losses of associates (2) 2 (5) (200) 60

Profit (loss) before income tax 2,850 1,227 2,189 132 30

Income tax (693) (582) (317) (19) (119)

Consolidated net income 2,157 645 1,872 234 15

Profit attributable to Controlling interest 1,769 544 1,282 225 38

Profit attributable to Non-controlling interest 388 101 590 284 (34)

STATEMENT OF INCOME

1Q17 vs.(%)

April 24, 2017 1

Nemak posts 1Q17 EBITDA1 of US$190 million

Monterrey, Mexico. April 24, 2017. - Nemak, S.A.B. de C.V. (“Nemak”) (BMV: NEMAK), a leading provider of innovative lightweighting solutions for the global automotive industry, announced today its operational and financial results for the first quarter of 2017 ("1Q17"). What follows is an overview of the quarter’s main highlights:

Key Figures

For 1Q17, sales volume increased 2.3% year-over-year due to the strength of Nemak´s Europe and Rest-of-World (“RoW”) regions more than offsetting decline in North America. Meanwhile, higher volumes combined with higher aluminum prices drove a 4.4% year-over-year increase in revenues. These results notwithstanding, 1Q17 EBITDA was US$190 million, a 9.1% decrease vis-a-vis the same quarter in 2016. This decrease was mainly due to two negative effects: one, the time lag needed to pass through aluminum price increases to customers (“metal price lag”); and two, lower volumes in North America. 1Q17 capex was US$143 million as the company continued to move ahead with strategic projects, reaching new milestones in the expansion of its footprint as well as the scale-up of its new structural and electric vehicles (“EV”) components businesses.

Message from the CEO

We saw profitability down this quarter mainly due to the negative impact of metal price lag. Continued softness in the passenger car segment in North America also weighed on our results, albeit to a lesser extent. The ramp-up of new programs in our Europe and Rest-of-World regions remained a bright spot, partially offsetting the aforementioned headwinds.

Turning to strategic projects, I am pleased to share that we reached several key milestones in the expansion of our global footprint as well as the execution of our plans in structural and EV components. First, we moved forward with the post-merger integration process in Turkey as expected, ensuring business continuity and delivering good results. Second, our team in Poland successfully brought our first three structural components programs to volume production, reinforcing our positive outlook for this new business line. Last, we officially inaugurated a new state-of-the-art production plant in Monterrey, Mexico. Equipped with high-pressure die casting

1 EBITDA = Operating Income + Depreciation, Amortization & other Non-Cash Charges

April 24, 2017 2

technology, this plant will support the production of engine blocks, transmission cases, and structural components, with most of the volume to be machined on-site.

On the financing front, during the quarter we successfully placed a seven-year, 500 million euro bond, which bears a 3.25% coupon. The proceeds from this placement were used to prepay shorter maturity debt, increasing the average life from four to six years. Additionally, it enabled us to better match the currency mix of our debt and cash flows in euros and further diversify our sources of funding.

Automotive Industry

In the quarter, SAAR for vehicle sales was nearly flat compared to 1Q16, as higher sales of trucks and large SUVs were offset by lower sales of passenger cars. North America vehicle production increased 1.6%, mainly due to the continued relocation of production to North America from other regions. In addition, Nemak customers’ vehicle production in North America rose 2.7% as higher overall production more than offset the combined impact of the discontinuation of production of FCA´s small- and medium-size sedan platforms and lower passenger car production volumes from Ford.

In Europe, vehicle sales SAAR in 1Q17 was up 1.2% compared to 1Q16 as growth in Western Europe outweighed a decrease in Eastern Europe. Vehicle production increased 7.8%, driven by higher sales during the quarter, while that of Nemak’s customers grew at a similar pace.

Recent Developments

During the quarter, Nemak won new contracts worth approximately US$125 million in annual revenues. These included a new program to produce structural components for Daimler. With this new program, Nemak has been awarded contracts to produce structural components for all premium German OEMs.

Nemak successfully launched three new programs at its plant in Poland to produce structural components for BMW and Audi.

On February 17, Nemak´s operation in Slovakia was recognized by FCA for its outstanding contributions to the successful launch of the engine platform serving Alfa Romeo’s first-ever SUV line as well as its all-new sedan.

April 24, 2017 3

Financial Results

What follows is an explanation of the results shown in the table above:

Total volume increased by 2.3% in 1Q17 as the ramp-up of new production programs in Europe and RoW more than compensated for lower volumes in North America. The acquisition in Turkey also contributed to this increase. In turn, higher volumes combined with double-digit increases in global aluminum price references resulted in a 4.4% year-on-year increase in revenues.

1Q17 operating income decreased 15.7% year-on-year, mainly as a result of aluminum price increases which created the aforementioned “metal price lag” effect. The comparison vis-a-vis 1Q16 was even more difficult taking into account that the metal price lag effect was positive in 1Q16. Additionally, the effect of lower volumes in Nemak’s North American operations contributed to this decrease. Lower operating income translated into an operating margin of 10.1%, 240 basis points below 1Q16.

The decrease in operating income already explained resulted in a 9.1% year-over-year decrease in EBITDA. 1Q17 EBITDA margin was 16.9%, down from the 19.4% reported in 1Q16. 1Q17 EBITDA per equivalent unit was US$14.40, down from US$16.20 in 1Q16.

1Q17 net income decreased 30.9% compared to 1Q16 mainly due to the already-mentioned decrease in operating income combined with increased financing expenses associated with the Eurobond issuance in March.

Capital expenditures totaled US$143 million during 1Q17. Investments were made to expand capacity, update existing production equipment, and improve operational efficiency. These included activities associated with the ramp-up of two new facilities in Mexico—a production plant and a machining center—as well as a new production plant in Slovakia and expansion in Poland.

As of March 31, 2017, Nemak reported Net Debt in the amount of US$1.3 billion, including Cash and Marketable Securities worth US$109 million. Financial ratios were: Debt, net of Cash, to EBITDA, 1.7 times; Interest Coverage, 11.9 times. These ratios are similar to those reported at the end of 2016.

April 24, 2017 4

Regional Results

North America

In 1Q17, revenues in North America decreased 1.7% compared to 1Q16 mainly due to the impact of lower volumes which was partially offset by higher aluminum prices. Meanwhile, this aluminum price increase created a negative metal price lag effect, which combined with lower volumes caused an 18.9% EBITDA reduction year-over-year.

Europe

In 1Q17, revenues in Europe increased 8.8% compared to 1Q16 mainly due to 12.5% higher volumes and higher aluminum prices, which were partially offset by the depreciation of the euro compared to the US dollar and an unfavorable sales mix. The consolidation of the plant acquired in Turkey in 4Q16 also contributed to the volume increase. EBITDA increased only 3.2% year-on-year as the impact of negative metal price lag partially offset benefits from higher volumes.

Rest of the World (RoW)

In 1Q17, revenues in RoW increased by 37.0% compared to 1Q16 mainly due to higher volumes and a better product mix in Asia. EBITDA in RoW increased US$5 million in 1Q17 compared to 1Q16 due to higher profitability in Asia.

------------------

April 24, 2017 5

Methodology for presentation of results

The report presents unaudited financial information. Figures are in Mexican pesos or U.S. dollars, as indicated. For income statements, peso amounts were translated into dollars using the average exchange rate of the months during which the operations were recorded. For balance sheets, peso amounts were translated into dollars using the end-of-period exchange rate. Financial ratios were calculated in dollars. Due to rounding, small differences may occur when calculating percent changes from one period to another.

Conference call information

Nemak’s First Quarter 2017 Conference Call will be held on Tuesday, April 25th, 2017, 11:30 a.m. Eastern Time (10:30 a.m. Mexico City Time). To participate in the conference call, please dial: Domestic U.S.: (877) 407-0784; International: (201) 689-8560; Mexico Toll Free 01-800-522-0034. The conference call will be webcast live through streaming audio. If you are unable to connect, the conference call audio and script will be available on Nemak’s website. For more information, please visit www.nemak.com/investors

Forward-looking statements

This report may contain certain forward-looking statements concerning Nemak’s future performance that should be considered as good faith estimates made by the Company. These forward-looking statements reflect management’s expectations and are based upon currently available data and analysis. Actual results are subject to future events and uncertainties, which could materially impact Nemak’s actual performance and results.

About Nemak

Nemak is a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain and body structure applications. The company employs more than 22,000 people at 38 facilities worldwide, generating annual revenues of US$4.3 billion in 2016. For more information about Nemak, visit http://www.nemak.com

Three pages of tables to follow

April 24, 2017 6

April 24, 2017 7

April 24, 2017 8

Investor Relations:

Adrian de los Santos

IR@axtel.com.mx

+52(81) 8114-1128

1st 2017Quarter

Media Relations:

Julio Salinas

contacto@axtel.com.mx

+52(81) 8114-1144

Nancy Llovera

IR@axtel.com.mx

+52(81) 8114-1128

San Pedro Garza Garcia, Mexico, April 24, 2017 - Axtel, S.A.B. de C.V. (“Axtel” or “the Company”), a Mexican

Information and Communications Technology company, announced today its unaudited first quarter results

ended March 31, 2017(1). Results presented on this report reflect figures consolidated under Alfa S.A.B. de C.V.

The complete unaudited first quarter results of Axtel have been filed with the Mexican Stock Exchange and are

also available at the Company’s website, axtelcorp.mx .

Note: Financial information presented throughout this report includes unaudited consolidated results for Alestra S. de

R.L. de C.V. and its subsidiaries (“Alestra”) up to February 14th, 2016, and for Axtel and its subsidiaries,

including Alestra, from February 15th, 2016, and thereafter.

Highlights:

Results in this quarter reflect the execution of Axtel’s business strategy focused on

telecom and IT value-added services to enterprise and government customers, which

represent approximately 80% of Axtel’s total revenues. Demand for data, Internet,

managed network, cloud and hosting solutions, as well as the positive performance of

Axtel’s FTTx-based services to mass market customers are the drivers of these results.

First quarter 2017 EBITDA increased 85% compared to pro forma first quarter 2016, due

to a 92% decline in the level of merger-related expenses and to the synergies’ initiatives

implemented in 2016 which translated into a 12% decline in recurring operative expenses.

In 2017, Axtel continues working to further increase its profitability. On March 31st, legacy

and separate ERP platforms of Alestra and Axtel were integrated into a modern, single

platform. Additionally, and subject to shareholders’ and legal approvals, on May 1st, legal

entities Alestra and Axtel will merge to consolidate bookkeeping activities and operating

processes, among others, to benefit customers and eliminate redundant activities.

YTD

In millions 4Q16 1Q16 D%

Revenues (Ps.) 3,683 3,783 2,646 -3% 39% 3,683 2,646 39%

In USD 181 191 147 -5% 23% 181 147 23%

EBITDA (Ps.) (5) 1,177 910 863 29% 36% 1,177 863 36%

In USD 58 46 48 26% 21% 58 48 21%

Net (loss) Income (Ps.) 851 -774 175 n.a. >100% 851 175 >100%

In USD 43 -38 11 n.a. >100% 43 11 >100%

Capital Expenditures (Ps.) 848 551 1,294 54% -35% 848 1,294 -35%

In USD 42 45 71 -7% -41% 42 71 -41%

Net Debt (In USD) 1,021 972 1,061 5% -4%

Net Debt / EBITDA (6) 4.4x 4.6x 3.9x

YTD'17 YTD'161Q17 1Q164Q16(%) 1Q17 vs.

2

Sources of Revenues

Quarterly revenues totaled $117 million, compared to $107 million in the same period in

2016, a 10% increase. The year-over-year growth is explained by the consolidation of Axtel

revenues for the complete period in 2017 and only since February 15th for the 2016 period. In the

quarter, Telecom revenues increased 10% and IT revenues increased 5% due to a positive

performance of hosting, cloud and security services during the quarter. In peso terms, Enterprise

revenues in the first quarter of 2017 increased 24% compared to the same period in 2016.

Enterprise

Total revenues increased 23% in the first quarter of 2017 compared to the same period in

2016, mostly explained by the consolidation of Axtel revenues for the complete 2017 period and

only since February 15th for the 2016 period. In peso terms, revenues increased 39%.

1Q16 1Q17

FTTx proportion within the revenue mix increased from 9% in 1Q16 to 15% in 1Q17 and wireless remained at

6%; Enterprise decreased from 73% in 1Q16 to 65% in 1Q17 and Government increased from 13% to 14%.

YTD

In millions 4Q16 1Q16 D%

ENTERPRISE (Ps.) 2,388 2,451 1,926 -3% 24% 2,388 1,926 24%

In USD 117 124 107 -5% 10% 117 107 10%

GOVERNMENT (Ps.) 523 558 331 -6% 58% 523 331 58%

In USD 26 28 18 -8% 39% 26 18 39%

MASS MARKET (Ps.) 772 775 389 0% 98% 772 389 98%

In USD 38 39 22 -3% 75% 38 22 75%

TOTAL (Ps.) 3,683 3,783 2,646 -3% 39% 3,683 2,646 39%

In USD 181 191 147 -5% 23% 181 147 23%

YTD'17 YTD'16(%) 1Q17 vs.

1Q17 4Q16 1Q16

85%

15%

Enterprise & Gov't

Mass Market

79%

21%

Enterprise & Gov't

Mass Market

YTD

In million USD 4Q16 1Q16 D%

TELECOM 106 111 96 -5% 10% 106 96 10%

Voice 30 32 30 -6% 0% 30 30 0%

Data and Internet 41 42 37 -3% 11% 41 37 11%

Managed Networks 35 38 29 -7% 19% 35 29 19%

IT 12 12 11 -5% 5% 12 11 5%

TOTAL ENTERPRISE 117 124 107 -5% 10% 117 107 10%

(%) 1Q17 vs.YTD'17 YTD'161Q17 4Q16 1Q16

3

Government revenues amounted to $26 million in the first quarter of 2017, compared to

$18 million in the same period in 2016, a 39% increase driven by the consolidation of Axtel

revenues for the complete period in 2017 and only since February 15th for the 2016 period. IT

revenues increased 7% and Telecom revenues increased 74% due to a good performance of

managed networks services related to new projects with government entities. In peso terms,

Government revenues in the first quarter of 2017 increased 58% compared to the first quarter of

2016.

Government

Mass Market (2)

Revenues for the mass market totaled $38 million in the first quarter of 2017, compared to

$22 million in same period in 2016, a 75% increase due to the consolidation of Axtel revenues for

the complete period in 2017 and only since February 15th for the 2016 period. In peso terms,

mass market revenues increased 98%.

FTTx. Revenues totaled $27 million in the first quarter of 2017 compared to $13 million in

the year-earlier quarter. FTTx customers increased 18% during the year.

Legacy Technologies. Revenues from clients connected with WiMAX and other legacy

technologies totaled $11 million in the first quarter of 2017, compared to $9 million in the

year-earlier quarter. Legacy technologies’ customers declined 37% during the year.

YTD

In million USD 4Q16 1Q16 D%

TELECOM 16 12 9 25% 74% 16 9 74%

Voice 2 2 1 13% 76% 2 1 76%

Data and Internet 4 5 3 -19% 58% 4 3 58%

Managed Networks 9 6 5 68% 81% 9 5 81%

IT 10 15 10 -35% 7% 10 10 7%

TOTAL GOVERNMENT 26 28 18 -8% 39% 26 18 39%

(%) 1Q17 vs.YTD'17 YTD'161Q17 4Q16 1Q16

YTD

In million USD 4Q16 1Q16 D%

FTTx 27 26 13 2% >100% 27 13 >100%

Legacy Technologies 11 13 9 -15% 23% 11 9 23%

TOTAL MASS MARKET 38 39 22 -3% 75% 38 22 75%

(%) 1Q17 vs.YTD'17 YTD'161Q17 4Q16 1Q16

16 1617 17YTDQTR

16 1617 17YTDQTR

16 1617 17YTDQTR

30

30

43

43

48

48

58

58

69

69

79

79

4

Cost of Revenues(in Mdlls.)

Expenses(in Mdlls.)

EBITDA(in Mdlls.)

Cost of revenues, Operating and other expenses and EBITDA

Cost of revenues(3) (excludes depreciation and amortization

cost). For the three month period ended March 31, 2017, the cost of

revenues represented $43 million, a 43% or $13 million increase,

explained by the consolidation of Axtel results for the complete 2017

period and only since February 15th in the 2016 period. In addition, as part

of the homologation accounting process between Axtel and Alestra, costs

that were previously classified as operating expenses related to billing,

collection and maintenance directly associated with customers are being

recorded as costs as of 2017. This adjustment represents a year-over-

year increase of $4 million in the quarter. In peso terms, Cost of

Revenues increased 63% year-over-year.

Operating and other expenses(4) (excludes depreciation and

amortization expense). In the first quarter of year 2017, expenses

totaled $79 million, 16% higher than the $69 million recorded in the same

period in year 2016. This increase is mostly explained by the

consolidation of Axtel results for the complete 2017 period and only since

February 15th in the 2016 period. In peso terms, expenses increased 31%

year-over-year.

EBITDA(5). For the first quarter of 2017, EBITDA totaled $58 million,

a 21% increase compared to the same period in year 2016. In peso

terms, EBITDA increased 36% year-over-year, mostly explained by the

consolidation of Axtel results for the complete 2017 period and only since

February 15th in the 2016 period. For the three month period ended March

31, 2017 and 2016, non-recurring merger and integration process

expenses totaled $2 million and $3 million, respectively.

5

Interest Expense

At the end of the first quarter 2017, total debt declined $28 million in comparison with

first quarter 2016. The decline is explained by (i) an $86 million increase related to an

additional peso-denominated portion of the Syndicated Credit Facility obtained in April 2016

used to refinance short-term debt, which is reflected in the (ii) $88 million decrease in loans

and other financing obligations; (iii) a $4 million increase in accrued interests, and (iv) a $31

million non-cash decrease caused by the 7% depreciation of the Mexican peso.

Total Debt and Net Debt (7)

Net interest expense reached $18 million in the first quarter of 2017, compared to $28

million in the same period of 2016, due to the redemption premium related to the prepayment

of the Senior Notes registered in 2016, which was later cancelled in the fourth quarter of 2016

as it represented an obligation for Axtel previous to the merger transaction. In peso terms, net

interest expense reached Ps. 358 million in the first quarter of 2017 compared to Ps. 511

million in 2016.

In the first quarter of 2017, capital investments totaled $42 million, compared to $71

million in the year-earlier quarter, a 41% decline due to a non-recurring intangible investment

related to the merger transaction in the first quarter of 2016.

Capital Investments

Million dollars 1Q17 4Q16 1Q16

Syndicated Credit Facility 833 803 774

Other loans 214 212 285

Other financing obligations 27 29 48

Accrued interests 7 6 3

Total Debt 1,081 1,050 1,110

(-) Cash and cash equivalents (60) (77) (49)

Net Debt 1,021 972 1,061

Appendix

Other important information

1) We are presenting financial information based on International Financial ReportingStandards (IFRS) in nominal pesos for the following periods:

– Consolidated income statement information for the three month periods endingon March 31, 2017 and 2016, and December 31, 2016; and year-to-date periodsending on March 31, 2017 and 2016, and

– Balance sheet information as of March 31, 2017 and 2016; and December 31,2016.

2) Mass market operating data:

3) Costs of revenues include expenses related to the termination of our customers’cellular and long distance calls in other carriers’ networks, as well as expenses relatedto billing, payment processing, operator services and our leasing of private circuit links.Costs that were previously classified as operating expenses related to billing, collectionand maintenance directly associated with customers are being recorded as costs as of2017.

4) Operating and other expenses are those incurred in connection with general andadministrative matters, such as personnel, land and tower leases, sales and marketing,maintenance of our network and net other not recurrent expenses including merger andintegration expenses.

5) EBITDA is defined as operating income (loss) plus depreciation and amortization, plusimpairment of assets.

6) Net Debt to EBITDA ratio: Net debt translated into U.S. Dollars using the end-of-periodexchange rate divided by the respective LTM pro forma EBITDA translated into U.S.Dollars using the average exchange rate for each month.

* Revenue Generating Units, represent individual service subscriptions (line,

broadband, video) which generate recurring revenues for the Company.

6

In thousands Q1 2017 Q4 2016 Q1 2016

FTTH

Customers 242 233 205

RGUs 661 639 552

Lines in service 295 281 233

Broadband subscribers 242 234 204

Video subscribers 124 124 116

LEGACY TECHNOLOGIES

Customers 182 207 289

RGUs 348 393 528

Lines in service 200 226 314

Broadband subscribers 148 167 214

7) Total debt includes accrued interests for each period. Net debt is calculated subtractingcash and equivalents, including non-current restricted cash, from total debt.

8) In March 2017, Axtel entered into a FX forward transaction fixing its dollar-denominatedinterest payments at an exchange rate of 20.0629 MXN/USD for the following amountsand dates:

April 2017 US$ 6.3 million

July 2017 US$ 7.7 million

October 2017 US$ 7.3 million

January 2018 US$ 7.6 million

9) The number of outstanding paid Series B shares was 19,229,939,531 as of March 31,2017, equivalent to 2,747,134,219 CPOs. On July 21, 2016, all former Series A shareswere converted into Series B shares.

About AXTEL

Axtel is a Mexican Information and Communication Technology Company that serves the enterprise,

government and residential markets with a robust portfolio of solutions through its brand Alestra (enterprise

and government services) and its brand Axtel (residential and small businesses services).

With a network infrastructure of over 40 thousand kilometers of fiber and more than 7 thousand square

meters of data center, Axtel enables organizations to be more productive and brings people together to

improve their quality of life.

As of February 15, 2016, Axtel is a subsidiary of Alfa, which owns 51% of its equity.

Axtel shares, represented by Ordinary Participation Certificates, or CPOs, trade on the Mexican Stock

Market under the symbol “AXTELCPO” since 2005.

Axtel’s Investor Relations Center: www.axtelcorp.mx

Enterprise and Government services website: www.alestra.mx

Mass Market services website: www.axtel.mx

7

(%) Mar-17 vs.

Mar-17 Dec-16 Mar-16 Mar-16

ASSETSCURRENT ASSETSCash and equivalents 975,031 1,447,118 695,882 40Accounts receivable 2,824,136 3,129,046 3,928,409 (28)Related parties 15,866 20,949 21,060 (25)Refundable taxes and other accounts receivable 910,106 916,831 1,045,777 (13)Advances to suppliers 539,345 517,457 693,447 (22)Inventories 130,897 109,388 111,412 17Financial Instruments (Zero Strike Call) 162,974 152,978 368,538 (56)Total current assets 5,558,356 6,293,766 6,864,526 (19)

NON CURRENT ASSETSRestricted cash 155,126 153,040 149,285 4Property, plant and equipment, net 20,819,253 20,918,953 19,872,296 5Long-term accounts receivable - 8,642 102,565 n.a.Intangible assets, net 6,198,711 6,446,945 1,982,381 >100Deferred income taxes 4,053,186 4,048,385 2,898,399 40Investment in shares of associated co. & other 1,708 1,708 18,131 (91)Other assets 199,788 203,597 183,207 9Total non current assets 31,427,770 31,781,268 25,206,265 25

TOTAL ASSETS 36,986,126 38,075,035 32,070,791 15

LIABILITIES & STOCKHOLDERS' EQUITYCURRENT LIABILITIESAccount payable & Accrued expenses 3,268,279 3,183,091 3,004,736 9Accrued Interest 139,636 132,815 60,343 >100Short-term debt 412,498 400,000 609,053 (32)Current portion of long-term debt 450,110 495,773 1,364,590 (67)Taxes payable 185,697 17,357 44,022 >100Deferred Revenue 673,962 1,022,982 444,640 52Provisions 46,972 129,647 205,187 (77)Other accounts payable 2,066,356 2,198,215 2,106,265 (2)Total current liabilities 7,243,511 7,579,880 7,838,834 (8)

LONG-TERM LIABILITIESLong-term debt 19,178,670 20,485,861 17,075,414 12Employee Benefits 492,856 467,036 406,971 21Other LT liabilities 2,686,583 2,760,220 351,521 >100Total long-term debt 22,358,109 23,713,118 17,833,906 25

TOTAL LIABILITIES 29,601,620 31,292,998 25,672,741 15

STOCKHOLDERS EQUITYCapital stock 365,512 10,362,334 10,364,785 (96)Additional paid-in capital - 644,710 644,710 n.a.Cumulative earnings (losses) 7,018,994 (4,225,008) (4,611,445) n.a.

TOTAL STOCKHOLDERS' EQUITY 7,384,506 6,782,037 6,398,051 15

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 36,986,126 38,075,035 32,070,791 15

8

Axtel, S.A.B. de C.V. and SubsidiariesUnaudited Consolidated Balance Sheet

(in Thousand Mexican pesos)

9

Axtel, S.A.B. de C.V. and SubsidiariesUnaudited Consolidated Income Statement

(in Thousand Mexican pesos)

1Q17 4Q16 1Q16 4Q16 1Q16 YTD'17 YTD'16 D%

Total Revenues 3,682,789 3,783,302 2,645,921 (3) 39 3,682,789 2,645,921 39

Operating cost and expenses

Cost of sales and services (884,609) (790,408) (543,891) 12 63 (884,609) (543,891) 63

Selling, administrative and other expenses (1,621,214) (2,082,775) (1,238,822) (22) 31 (1,621,214) (1,238,822) 31

Asset impairment (423) (81,136) (204) (99) >100 (423) (204) >100

Depreciation and amortization Cost (931,110) (639,019) (513,627) 46 81 (931,110) (513,627) 81

Depreciation and amortization Expenses (319,859) (811,819) (94,124) (61) >100 (319,859) (94,124) >100

(3,757,214) (4,405,158) (2,390,668) (15) 57 (3,757,214) (2,390,668) 57

Operating income (loss) (74,425) (621,856) 255,254 (88) n.a. (74,425) 255,254 n.a.

Comprehensive financing result:

Interest expense (369,001) 431,538 (515,239) n.a. (28) (369,001) (515,239) (28)

Interest income 10,742 6,940 3,951 55 >100 10,742 3,951 >100

Foreign exchange gain (loss), net 1,438,212 (907,628) 394,653 n.a. >100 1,438,212 394,653 >100

Change in fair value of fin. instruments (12,770) (40,852) 23,438 (69) n.a. (12,770) 23,438 n.a.

Comprehensive financing result, net 1,067,183 (510,003) (93,197) n.a. n.a. 1,067,183 (93,197) n.a.

Equity in results of associated company (0) (265) 0 (100) n.a. (0) 0 n.a.

Income (loss) before income taxes, 992,758 (1,132,124) 162,056 n.a. >100 992,758 162,056 >100

Income taxes:

Current (219,603) 16,268 (37,293) n.a. >100 (219,603) (37,293) >100

Deferred 78,223 341,522 50,265 (77) 56 78,223 50,265 56

Total income taxes (141,380) 357,790 12,972 n.a. n.a. (141,380) 12,972 n.a.

Net Income (Loss) 851,378 (774,334) 175,029 n.a. >100 851,378 175,029 >100

(%) 1Q17 vs.

ALFA´S FIRST QUARTER 2017 42

NEWPEK | NATURAL GAS AND HYDROCARBONS 1% AND 0% OF ALFA´S REVENUES AND EBITDA IN 1Q17 Newpek is an oil & gas exploration and production company with operations in the United States and Mexico. ThecompanyownsmineralrightsinseveralstateswithintheU.S.whereitextractsoil,naturalgasandliquids.InMexico,itsoperationsareconcentratedintwomatureoilfieldsunderaserviceagreementwithPetróleosMexicanos(PEMEX).

INDUSTRY COMMENTS

Althoughhydrocarbonpricesremainedessentiallyunchangedduring1Q17comparedtothepreviousquarter,withWTIOilprice averaging around U.S. $52 per barrel, and Henry Hub natural gas price at around U.S. $3.00 per MMBTU, theuncertaintysurroundingmid-to-longtermoilpricesremained.OPECcontinuestograpplewithwhethertoregainmarketshareoraimforhigheroilpriceswhiletheUSrigcountgrows,whichisthekeyfactordrivingpricesintheshortterm.

OPERATIONS IN THE U.S.

During1Q17,nonewwellswereconnectedtosalesattheEagleFordShaleplay(“EFS”)inSouthTexas.ThiskeptwellsinproductionatEFSat628bythequarter’send,1%abovethe625wellsinproductionattheendof1Q16.SalesvolumeintheU.S. averaged 5.1MBOEDduring 1Q17, down41% from1Q16. Liquids and oil represented 67%of the total salesvolume for thequarter,up from63%ayearago.Strategicdrillingandcompletionactivities resumedatEFSduring thequarterwithfourwellsdrilled.Firstproductionofthenewwellsisexpectedduring2Q17,andatotalof20newwellsareexpected tobeputonproductionduring theyear. Theprospects in theotherareaswithin theU.S. remainedonholdduringthequarter,butdrillreadylocationshavealreadybeenidentifiedandareexpectedtobedrilledassoonasbetterandmorestablehydrocarbonpricesarepresent.

OPERATIONS IN MEXICO

InMexico,productionaveraged3.7MBOEDduring1Q17,up3%from1Q16.TheSanAndrésfieldrepresented71%ofthetotalproductionforthequarter,essentiallyflatyear-on-year.Therewere132wellsinproductioninMexicoatquarter’send,a94%increasefromthe68wellsinproductionattheendof1Q16.

FINANCIAL RESULTS; CAPITAL EXPENDITURES AND ACQUISITIONS; NET DEBT

Oilandgaspricesincreasedsignificantlyonayear-on-yearbasis,withWTIOilpriceup56%andHenryHubnaturalgaspriceup52%,whichwassufficient tooffset thenormaldecline inproductionvolume.This in turn, resulted inslightlyhigherrevenuesinthequarter,whichtotaledU.S.$26millionin1Q17,up3%year-on-year.EBITDAwasnegativeU.S.$2million,similartothenegativeU.S.$1.5millionin1Q16.CapitalexpendituresamountedtoU.S.$4million,whilenetdebtwasU.S.$34millionattheendofthequarter.

ALFA´S FIRST QUARTER 2017 43

NEWPEKTABLE1|REVENUES

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16TOTALREVENUES Ps.Millions 536 544 460 (2) 17U.S.$Millions 26 27 25 (4) 3

DOMESTICREVENUES Ps.Millions 252 246 220 2 15U.S.$Millions 12 12 12 - 2

FOREIGNREVENUES Ps.Millions 284 298 240 (5) 18U.S.$Millions 14 15 13 (8) 5Foreign/Total(%) 53 55 52 VOLUME (U.S. Assets) ThousandsofBarrelsofOilEquivalentPerDay(MBOEPD) 5.1 5.9 7.5 Liquids&othersas%oftotalsalesvolume 67 68 57

TABLE3|SELECTEDBALANCESHEETINFORMATION&FINANCIALRATIOS(U.S.$MILLIONS)

1Q17 4Q16 1Q16Assets 345 343 546Liabilities 295 292 325Stockholders’Equity 50 51 221NetDebt 34 25 86NetDebt/EBITDA* 3.7 2.7 1.5InterestCoverage* 1.4 1.5 4.2*Times:LTM=Last12months

TABLE2|OPERATINGINCOMEANDEBITDA

(%)1Q17VS. 1Q17 4Q16 1Q16 4Q16 1Q16OPERATINGINCOME Ps.Millions (180) (1,275) (292) 86 39U.S.$Millions (9) (62) (16) 86 46EBITDA Ps.Millions (40) 240 (28) (117) (44)U.S.$Millions (2) 12 (2) (117) (30)