Alfa de CV : reports record EBITDA of US $887 million in 4Q18, up 56% year-over-year

Monterrey, N.L., Mexico, February 13, 2019.- ALFA, S.A.B. de C.V. (ALFA), reported today its 4Q18 unaudited financial results. Total revenues were US $4,692 million, up 9% year-on-year driven by higher sales at Alpek. EBITDA was US $887 million, a 56% increase vis-à-vis 4Q17 and 8% higher when excluding extraordinary items in both quarters.

Commenting on the Company's results Mr. Alvaro Fernandez, ALFA's President, said: 'Both the quarter and full year showed good results. The quarter's EBITDA was up 9% year-on-year in comparable terms and full year 2018 was a strong year for ALFA, with the highest EBITDA ever, even when excluding extraordinary items. During the quarter, two of our companies moved forward with significant strategic transactions that better position both ALFA and the subsidiary companies for future growth. Alpek, along with its joint venture partners, closed the acquisition of M&G's project in Corpus Christi, while Axtel, aligned with its strategy to focus in the enterprise and government segments, divested its mass-market business, with proceeds utilized to significantly strengthen its balance sheet. This, along with Alpek's announced sale of its Cogen plants keeps us firmly on track to meet our stated goal of lowering ALFA's consolidated leverage.'

Consolidated capital expenditures and acquisitions amounted to US $262 million during 4Q18. Net Debt at the close of the quarter reached US $6,543 million, 4% higher when compared to US $6,300 million in 4Q17 reflecting mainly the acquisition of PetroquimicaSuape and Citepe (Suape/Citepe) and the contribution for the Corpus Christi Project by Alpek in 2Q18 and 4Q18, respectively. At the end of the quarter, Net Debt to EBITDA improved to 2.3 times and Interest Coverage to 5.8 times from 3.1 times and 4.6 times in 4Q17, respectively.

Majority Net Income was US $237 million in 4Q18, a reversal from the US $31 million loss reported in 4Q17. This improvement is mainly explained by increased margins at Alpek, along with extraordinary gains at Alpek and Axtel that resulted in higher year-on-year operating income, as well as by lower exchange losses compared to 4Q17.

Selected Financial Information (U.S. $ Millions)
	4Q18	3Q18	4Q17	CH.% VS. 3Q18	CH% VS. 4Q17	YTD. ´18	YTD. ´17	YTD. Chg.%
Consolidated Revenues	4,692	4,950	4,297	(5)	9	19,055	16,804	13
Sigma	1,596	1,601	1,593	-	-	6,336	6,054	5
Alpek	1,758	1,941	1,321	(9)	33	6,991	5,231	34
Nemak	1,078	1,152	1,094	(6)	(1)	4,704	4,481	5
Axtel	208	202	226	3	(8)	809	822	(2)
Newpek	22	27	31	(18)	(29)	108	107	-
Consolidated EBITDA 1	887	666	568	33	56	2,858	2,018	42
Sigma	174	180	195	(3)	(11)	684	676	1
Alpek	369	274	141	35	163	1,063	384	177
Nemak	171	160	166	7	3	734	715	3
Axtel	206	69	77	199	170	422	290	46
Newpek	16	(2)	3	926	358	31	3	971
Majority Net Income	237	72	(31)	229	871	682	(134)	608
Capital Expenditures & Acq.	262	198	250	32	5	1,296	1,101	18
Net Debt	6,543	6,901	6,300	(5)	4	6,543	6,300	4
Net Debt/LTM EBITDA*	2.3	2.7	3.1
LTM Interest Coverage*	5.8	5.2	4.6
*Times. LTM= Last 12 months 1 EBITDA = operating income + depreciation and amortization + impairment of assets.

About ALFA

ALFA is a holding company that manages a portfolio of diversified subsidiaries: Sigma, a leading multinational refrigerated food company, focused on the production, marketing and distribution of quality foods through recognized brands in Mexico, Europe, United States and Latin America. Alpek, one of the world's largest producers of polyester (PTA, PET and fibers), and the leader in the Mexican market for polypropylene, expandable polystyrene (EPS) and caprolactam. Nemak, a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain, structural components and for electric vehicles. Axtel, a provider of Information Technology (IT) and Communication services for the enterprise, government and mass market in Mexico. Newpek, an oil and gas exploration and production company with operations in Mexico and the United States. In 2018, ALFA reported revenues of Ps 366,432. million (U.S. $19,055 billion), and EBITDA1 of Ps.55,178 million (U.S. $2,858 billion). ALFA's shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.

Contact:

Luis Ochoa Reyes
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
[phone]
[e-mail]