CONSORCIO ARA, S. A. B. DE C. V. (ARA*) RESULTS FOR THE THIRD QUARTER OF 2015 (3Q15)

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1 CONSORCIO ARA, S. A. B. DE C. V. (ARA*) RESULTS FOR THE THIRD QUARTER OF 2015 (3Q15) (All figures in millions of pesos) Mexico City, October 26, 2015 Consorcio ARA, S.A.B. de C.V. ( ARA BMV: ARA*) reports its results for 3Q15. I. Remarks by the Chief Executive Officer Germán Ahumada Russek had the following remarks: In the third quarter of 2015, ARA obtained a mortgage-backed syndicated loan for 1.85 billion pesos. Of these resources, 1.54 billion were used to pay off in advance an existing syndicated loan, and the remainder is being applied to working capital. Foresta, Mexico State Colinas de la Piedad, Querétaro Fuentes de Tizayuca, Hidalgo Paraíso Country Club, Morelos Paseo de los Sauces, Puebla Paseos del Bosque, Puebla The signing of this contract was a significant achievement for us, because it helps improve our debt maturity profile as well as our credit conditions. The mortgage security on this loan has a collateralization ratio of 1 to 1 (compared to 1.5 to 1 on the previous loan), and is made up of long-term land bank reserves. It is also guaranteed by the Federal Mortgage Society (SHF) for up to 50% of the outstanding balance of the loan, which is the first time this scheme has been used in a loan of this type. Furthermore, ARA can now resume its dividend payment policy, which was restricted by a covenant on the former debt. Consorcio ARA s strong results since the third quarter of 2014, with growth in revenues and profits, free cash flow generation and its characteristic financial solidity, provided the basis for this successful transaction. Our results for the third quarter of 2015 were in line with our original projections, which means we can confirm our guidance on annual growth in revenues, of between 9% and 10%, as well as generation of Free Cash Flow to the Firm of around 500 million pesos. Between January and September 2015, revenues grew 13.1% and net income 24%. Earnings per Share (EPS) in the last twelve months was pesos, a growth of 28.3%. Revenues in the third quarter alone were 4.5% higher than the already-solid third quarter of 2014, driven by the Middle Income Housing segment, with a growth of 15.5%. Net income grew at a pace consistent with revenues. Despite a challenging economic climate in 2015, we at Consorcio ARA are focused on meeting the goals we set at the start of the year. We have a committed team of employees, strong financial capacity and a diversified product portfolio, among other qualities, which we are confident will make 2015 our second consecutive year of stronger results. Investor Relations Alicia Enriquez (5255) aenriquez@ara.com.mx (5255) x. 4096

2 II. Overview 3Q15 vs. 3Q14 Revenues of P$1.72 billion, a growth of 4.5%, corresponding to 3,054 homes, a growth of 1.6%. An average price of P$552,100 (pesos), a growth of 2.8%. Operating income of P$191.8 million, an increase of 12.3%, and an operating margin of 11.2%. EBITDA of P$255.6 million, an increase of 3.8%, and an EBITDA margin of 14.9%. Net income of P$141.8 million, an increase of 4.0%, and a net margin of 8.3%. Free Cash Flow to the Firm was negative by -P$42.6 million. Jan-Sep 15 vs. Jan-Sep 14 Revenues of P$5.09 billion, a growth of 13.1%, corresponding to 9,153 homes, a growth of 16.2%. An average price of P$549,300 (pesos), a slight decrease of 1.8%. Operating income of P$575.5 million, 31.0% higher, and an operating margin of 11.3%. EBITDA of P$736.6 million, an increase of 9.0%, and an EBITDA margin of 14.5%. Net income of P$436.4 million, an increase of 24.0%, and a net margin of 8.6%. Positive Free Cash Flow to the Firm of P$264.1 million. Results (Millions of pesos) 3Q15 3Q14 Var. % Jan-Sep'15 Jan-Sep'14 Var. % Revenues 1, , , , Sales (homes) 3,054 3, ,153 7, Average price (Thousands of pesos) Gross profit , , Income from operations Net income EBITDA (1) Gross margin 26.7% 25.8% 26.8% 25.7% Operating margin 11.2% 10.4% 11.3% 9.8% Net margin 8.3% 8.3% 8.6% 7.8% EBITDA margin 14.9% 15.0% 14.5% 15.0% Free Cash Flow to the Firm (1) EBITDA: Income from operations excluding depreciation, capitalized interest expense that was transferred to cost, and other income (expense) - net

3 Financial position (Millions of pesos) As of Sep'15 As of Dec'14 Chge. % Cash and cash equivalents 1, , Cost bearing liabilities 2, , Net debt , (Times) Cost bearing liabilities As of Sep'15 As of Dec'14 Change / Stockholders equity / Total assets / EBITDA (12m) Net debt / EBITDA (12m) Net debt / Stockholders equity Interest coverage: 3Q15 3Q14 Chge. Jan-Sep'15 Jan-Sep'14 Chge. EBITDA / Interest expense Land Bank As of September 30, 2015, ARA s land bank had an assessed value of P$4.78 billion and included 37.6 million m 2, enough to build 151,187 master-plan homes. This land bank includes 2.8 million m 2 set aside for non-housing development, such as the retail properties, tourist resorts and industrial zones

4 III. Third Quarter Results 2015 / 2014 (3Q15 / 3Q14) Revenues Revenues 3Q15 / 3Q14 100% 80% Other Real Est. Proj. Residential 1.7% 1.7% 16.4% 16.3% Total revenues in 3Q15 amounted to P$1.72 billion, a growth of 4.5% over 3Q14. Housing revenues came to P$1.69 billion, a growth of 4.4%. The total number of homes sold was 3,054, an increase of 1.6% percent over the year earlier. Revenues by type of housing are broken down as follows: 60% Middle Income 44.1% 39.9% 3Q15 3Q14 Chge. 3Q 15/14 40% 20% 0% 100% 80% 60% 40% Affordable Entry Level Progresiva 24.2% 13.6% 3Q15 Units 3Q15 / 3Q14 Residential Middle Income 35.8% Affordable Entry Level 35.9% 23.5% 18.6% 3Q14 4.6% 4.7% 28.5% 33.8% Units Mill. $ Rev% Units Mill. $ Rev% Mill. $ % Progresiva Affordable Entry Level 1, , Middle Income 1, Residential Total as Home Builder 3,054 1, ,006 1, Other Real Estate Projects Total 3,054 1, ,006 1, In 3Q15, revenues in the Affordable Entry Level, Middle Income and Residential segments were 7.4%, 15.5% and 5.4% higher, respectively, than in 3Q14, while the Progresiva segment saw a 23.9% decline in the same period. Revenues from homes sold under federal government subsidies accounted for 29% of total revenues in 3Q15, and 24.7% in 3Q14. In terms of sales volume, the Affordable Entry Level, Middle Income and Residential segments saw a growth of 7.8%, 27.6% and 0.7%, respectively from 3Q14 to 3Q15; while volume in the Progresiva segment was off by 27%. In terms of the number of units sold, homes in vertical or multistory buildings made up 38% of the total in 3Q15. 20% 0% Progresiva 23.8% 3Q % 3Q14 Sales of "Other Real Estate Projects" (largely consisting of the sale of land for commercial properties and leasing revenues) accounted for 1.7% of total revenues in both 3Q15 and 3Q14, and increased 7.0% compared to the same period of last year

5 Percentage of titled homes by type of financing 3Q15 / 3Q14 3Q15 INFONAVIT Total and Cofinavit 3Q14 INFONAVIT Total and Cofinavit INFONAVIT FOVISSSTE INFONAVIT FOVISSSTE SHF, Banks and No Credit SHF, Banks and No Credit 63.5% Total INFONAVIT 71.4% Total INFONAVIT Progresiva Aff. Entry Level AVERAGE Middle Income Residential Costs Average sales prices by type of housing unit 3Q15 (Thousand of pesos) , ,000 1,200 1,400 1,600 1,800 2,000 2,200 The average price of an ARA home sold in 3Q15 was P$552,100 (pesos), an increase of 2.8% compared to the year-earlier period. This was primarily due to a larger share of Middle Income segment in the revenue mix. In 3Q15, costs totaled P$1.26 billion, equivalent to 73.3% of revenues. Costs increased 3.2% over 3Q14. Gross Profit At the close of 3Q15, gross profit totaled P$458.1 million, a 8.3% growth over 3Q14. The gross margin in 3Q15 was 26.7%, 90bp higher than in 3Q14. General expenses In 3Q15, general expenses, which include wages and compensation for administrative and sales personnel as well as sales expense, came to P$265.5 million, an increase of 3.5% compared to 3Q14. General expenses were equivalent to 15.5% of revenues, basically stable against the year-earlier period. Operating Income Operating income in the 3Q15 was P$191.8 million, and grew 12.3% over 3Q14. The operating margin in 3Q15 was 11.2%, 80bp higher than in 3Q

6 Financial income - net 3Q15 3Q14 Change Mill $ Mill $ Mill $ % Net interest expense Interest income Exchange gain Loss on derivatives Financial income - net Q15 3Q14 Change Mill $ Mill $ Mill $ % Interest expense Capitalized interest expense Net interest expense Financial income net in 3Q15 was P$2.7 million. In 3Q15, compared to the same period of last year, interest expense rose by 59.4%, primarily because of the costs relating to the new syndicated loan (see section entitled Debt). Foreign-exchange fluctuations in 3Q15 brought a FX gain of P$1.3 million. Losses on derivative trading were P$0.9 million, corresponding to interest-rate swaps on certain loans that were reprogrammed in 2013, decreased by 69.7% Capitalized interest expense is based on the weighted average acquisition of inventories (which includes land and work in process). The interest is capitalized into inventories and transferred to costs as revenues from the corresponding developments are entered. In 3Q15 and 3Q14, capitalized interest expense included in inventories was P$48.8 million and P$30.6 million, respectively. At the same time, capitalized interest expense of P$44.3 million was transferred from inventories to costs in 3Q15, compared to P$58.3 million in 3Q14. Income tax ARA s tax bill for 3Q15 totaled P$60.8 million, corresponding to an Income Tax rate of 30% of net fiscal earnings. Net Income Net income in 3Q15 was P$141.8 million, with a 4% increase over 3Q14, keeping pace with the rise in revenues. The net margin was 8.3% in 3Q15, stable against the year-earlier period. EBITDA Reconciliation of net income with EBITDA 3Q15 3Q14 Change Mill $ Mill $ Mill $ % Net income Depreciation Capitalized interest paid transferred to costs Income taxes Equity in earnings of equity method investees Other expense (income) - net Financial income - net EBITDA In 3Q15, ARA generated P$255.6 million in EBITDA, a growth of 3.8% compared to the same period of the year. The EBITDA margin for 3Q15 was 14.9% - 6 -

7 IV. Results January-September 2015 / 2014 (9M15 / 9M14) Revenues Revenues 9M15 / 9M14 100% 80% Otros Proyectos Inm. 1.3% 2.1% Residential 17.6% 17.9% Total revenues in the first nine months of 2015 were P$5.09 billion, 13.1% higher than in the same period of Housing revenues came to P$5.03 billion, corresponding to a volume of 9,153 homes. These revenues and sales volume figures are 14.1% and 16.2% higher, respectively, than in the same period of last year. 60% Middle Income 41.4% 43.8% The breakdown of revenues by type of home was as follows: Jan-Sep'15 Jan-Sep'14 Chge. 9M 15/14 40% 20% 0% 100% 80% Affordable Entry Level Progresiva 25.5% 20.8% 14.2% 15.3% 9M15 Units 9M15 / 9M14 Residential 9M14 5.1% 5.6% Middle Income 32.8% 32.5% Units Mill. $ Rev% Units Mill. $ Rev% Mill. $ % Progresiva 2, , Affordable Entry Level 3,448 1, , Middle Income 2,998 2, ,557 1, Residential Total as Home Builder 9,153 5, ,877 4, Other Real Estate Projects Total 9,153 5, ,877 4, In Jan-Sep 15, revenues from all for housing segments grew in comparison to Jan-Sep 14. Sales in the Affordable Entry Level and Residential segments grew at double-digit rates of 38.6% and 11.2%, respectively, while for the Progresiva and Middle Income segments, revenues were 4.8% and 6.8% higher, respectively. Revenues from homes sold under federal government subsidies accounted for 33.2% of total revenues between January and September 2015, and 16.9% in the same period of % 40% Affordable Entry Level 37.7% 32.6% In terms of sales volume, the Affordable Entry Level, Middle-Income and Residential segments all saw growth, of 34.3%, 17.2% and 5.2%, respectively; while sales volume in the Progresiva segment declined by 2.9%. In terms of the number of units sold, homes in vertical or multistory buildings made up 40% of the total in Jan-Sep % 0% Progresiva 24.5% 9M % 9M14 Sales of "Other Real Estate Projects" (largely consisting of the sale of land for commercial properties and leasing revenues) accounted for 1.3% of total revenues in Jan-Sep 15 (2.1% in Jan-Sep 14), and decreased 29.6% compared to the same period of last year, due primarily to a reduction in the sale of commercial land

8 Percentage of titled homes by type of financing 9M15 / 9M14 9M15 INFONAVIT Total and Cofinavit 9M14 INFONAVIT Total and Cofinavit INFONAVIT FOVISSSTE INFONAVIT FOVISSSTE SHF, Banks and No Credit SHF, Banks and No Credit 64.9% Total INFONAVIT 68.4% Total INFONAVIT Progresiva Aff. Entry Level AVERAGE Middle Income Residential Average sales prices by type of housing unit 9M15 (Thousand of pesos) , ,000 1,200 1,400 1,600 1,800 2,000 The average price of an ARA home sold in Jan-Sep 15 was P$549,300 (pesos), a slight decrease of 1.8% compared to the year-earlier period. This was primarily due to a larger share of Affordable Entry Level segment in the revenue mix. V. Financial position, liquidity and capital resources Cash and cash equivalents As of September 30, 2015, cash and cash equivalents totaled P$1.39 billion, an increase of 29.7% over the balance at the close of last year. Accounts receivable The balance of accounts receivable as of September 30, 2015 was P$716.8 million, a 15% percent reduction compared to the balance at the close of the previous fiscal year. Accounts receivable turnover was 1.3 months, down from 1.6 months as of December 31, Inventories ARA s land bank is strategically located in some of Mexico s fastest growing economic regions. As of September 30, 2015, our land bank extended over 37.6 million m 2 in 19 states, enough land on which to build 151,187 master-plan homes. This land bank includes 2.8 million m 2 that have been set aside for non-housing purposes, such as the construction of commercial developments, tourist resorts and industrial zones

9 The table and map below show the geographic distribution of ARA s land bank: State Units % Mexico State 49, Quintana Roo 36, Baja California 10, Nuevo León 8, Veracruz 7, Puebla 6, Hidalgo 6, Guerrero 5, Jalisco 4, Querétaro 3, Subtotal 138, Others (9 states) 12, Total 151, As of September 30, 2015, ARA reported P$13.37 billion in inventory, which includes: i) P$4.78 billion in land currently under development and for future development, and ii) works in progress (building, urbanization, infrastructure, equipment and licenses), and construction materials storage totaling P$8.59 billion. Land bank by type of housing unit as of September 30, 2015 Affordable Entry Level 87, % 15.4% 7.9% 18.6% Middle Income 23,344 Residential 11, ,187 master - plan Progresiva 28,160 homes Property, machinery and equipment ARA is a vertically integrated Company, which allows us to both generate and take fuller advantage of significant economies of scale. Our Concrete, Machinery and Falsework division (COMACI) is a strategic unit that provides the machinery and equipment necessary for our construction, cast-in-place wall and falsework, as well as our supply of readymix. As of September 30, 2015, the Company had P$226.3 million invested in property, machinery and equipment. Debt On September 30, 2015, ARA obtained a new mortgage-backed syndicated loan for P$1.85 billion pesos, at a rate of interest that depends on its cost bearing debt to EBITDA ratio. If that ratio is between 2 and 3 times, the rate would be 242 basis points over the TIIE. As of September 30, 2015, the ratio of cost bearing debt to EBITDA was 2.41 times

10 The loan has a term of five years, and is payable as follows: 16% in year 1, 18% in year 2, 20% in year 3, 21% in year 4 and the remaining 25% in year 5. Of the resources obtained, P$1.54 billion pesos went to pay off in advance an existing syndicated loan that we had as of September 30, 2015, and the remainder is being applied to working capital. The mortgage security for the loan has a collateralization ratio of 1 to 1 on the outstanding balance of the debt and consists of long-term land bank reserves with a book value of P$983.2 million. It is also guaranteed by the Federal Mortgage Society for up to 50% of the outstanding balance. Among the main covenants ARA has with respect to this debt is to keep its leverage ratio (debt to EBITDA) at or below 3.5 times, and net debt (net debt to EBITDA) at or below 2.5 times. Furthermore, Consorcio ARA may now resume its dividend policy, which was restricted by the terms of the previous loan. The improvement in its debt maturity profile is shown in the following graph: Syndicated Loan Maturity Calendar as of September 30 of each year (Millions of pesos) New Syndicated Loan Previous Syndicated Loan As of September 30, 2015, the balance of cost bearing debt (bank loans plus financial leasing) was P$2.33 billion, which was 8.4% higher than the balance as of December 31, 2014 (P$2.15 billion), the result of the P$307 million received under the abovementioned syndicated loan. At the end of 3Q15, short-term debt accounted for 21.7% and long-term debt was 78.3%. All of the cost-bearing debt is denominated in pesos. As of September 30, 2015, the balance of bridge loans was P$256.5 million, representing 11.2% of bank loans. The interest rate on these loans was pegged at 285 basis points over the TIIE, and they expire in terms of up to 3 years. There are credit lines available for bridge loans totaling P$1.15 billion. In 2012 the Company conducted some interest rate swap transactions for certain loans. The interest rate on those reprogrammed loans was between TIIE plus 220 and 250 basis points, and was swapped for a fixed rate of between 7.18% and 7.68%. In financial leasing, a source of funding for the acquisition of machinery and equipment, the outstanding balance as of September 30, 2015, was P$30.3 million

11 As of September 30, 2015, the Company s net debt totaled P$932.5 million, a 13% reduction from its level on December 31, (Times) As of Sep'15 As of Dec'14 Change / Stockholders equity / Total assets / EBITDA (12m) Net debt / EBITDA (12m) Net debt / Stockholders equity Total Liabilities / Total Assets 34.1% 34.2% -10 pb Total Liabilities (a) / Total Assets 23.1% 23.0% 10 pb Total Liabilities / Stockholders equity 51.8% 51.9% -10 pb (a) Cost bearing liabilities Deferred income tax not included. Consorcio ARA has the strongest credit ratings in the Mexican housing industry from Standard & Poor s and Moody s Investors Service, mxa and A2.mx ( Ba2 global), respectively). Other financial ratios In addition to the debt ratios presented previously, the following table contains further indicators of this firm s solid financial structure. As of Sep'15 As of Dec'14 Liabilities in Foreign Currency / Total Liabilities 0.5% 0.1% Cash and Investments / Current Liabilities 67.6% 54.9% Revenues / Total Liabilities 1.18 times 1.11 times Current Assets / Current Liabilities 7.87 times 7.95 times Current Assets (-) Inventories / Current Liabilities 1.39 times 1.36 times Deferred income tax The Company s deferred income tax liability as of September 30, 2015 totaled P$1.86 billion, a slight increase of 2.2% against the balance at the end of The deferred income tax liability is largely the result of the deductible nature of our land bank acquisitions. Stockholder s equity Consorcio ARA s stockholders equity totaled P$11.16 billion as of September 30, Of this amount, 90.3% corresponded to accumulated earnings, which totaled P$10.08 billion. Earnings Per Share (EPS) For the last 12 months ended September 30, 2015, EPS was $0.436 pesos, compared to $0.34 pesos in the same period of last year, a substantial 28.3% increase

12 VI. Shopping malls ARA has a unit devoted to developing, managing and marketing shopping centers. These shopping centers are strategically located in areas of high demographic growth potential, typically inside or close to ARA s housing developments, serving as a major source of added value for those developments. The following table shows the geographic location of the developments and their Gross Leasable Area (GLA): Shopping center State GLA* (m 2 ) % Las Américas State of Mexico 61, Centro San Miguel State of Mexico 25, Plaza Centella State of Mexico 14, Centro San Buenaventura State of Mexico 10, Plaza Oasis Baja California Norte 26, Plaza Carey Veracruz 17, Total 155, * Gross Leasable Area In addition, ARA has 7,428m 2 in uni and mini shopping center formats, bringing the full total of Gross Leasable Area to 162,960m 2. Because the business model of our shopping center projects involves a 50% joint venture partner (except Plaza Carey and Plaza Centella, which are wholly owned by ARA), these projects are not consolidated into ARA s results but are instead recorded based on the equity method. Net Operating Income (NOI) for the shopping centers in 2015 is estimated at around P$300 million, an expected 7% growth over Approximately 55% of the estimated NOI goes to ARA. Paseo Ventura In the third quarter of 2015 the second phase of construction began on the Paseo Ventura project, which will have a total net leasable area of around 28,000m 2, located in the State of Mexico. Our partner in this shopping center is Artha Capital, and we signed a trust agreement in order to carry out the planning, design, construction, operation and leasing of the property. Total estimated investment in the project is around P$550 million, 50% of which will come from ARA and the other 50% from Artha Capital. In the initial phase of investment in the project, Consorcio ARA contributed the property with a value of P$80.2 million. As of September 30, 2015, ARA s stake in this investment was 61.6%. This transaction accounts for less than 5% of ARA s total assets, but because it is a related party transaction, in keeping with our policy on this matter, the transaction was presented, analyzed and approved by the Board of Directors

13 VII. Closing Remarks Dividend payment In 2015, Consorcio ARA introduced the policy of declaring and paying dividends in an amount equivalent to up to 25% of its net profits, provided there was a positive balance in the Net Tax Income Account (known as the CUFIN). In the General Ordinary Annual Meeting held April 23, 2013, shareholders approved the payment of P$85.1 million in dividends, equivalent to 15% of the net income in fiscal year After that, the syndicated loan agreement was signed restricting the payment of this dividend as well as the declaration of any dividends during the life of that agreement. The syndicated loan signed on September 30, 2015 (described in point V. Financial position, liquidity and capital resources Debt, of this report) eliminates that restriction. Accordingly, today the Board of Directors approved the payment of a dividend amounting to P$85.1 million, payable in November Shareholders will be informed on a timely basis of the exact date of payment, in accordance with article 34, section IV of the General Provisions Applicable to Securities Issuers and Other Participants in the Securities Market

14 Conference Call and Webcast ARA will hold its conference call to discuss the Company s 3Q15 results on Tuesday, October 27, 2015 at 10:00 a.m. (Central Standard Time) 12:00 p.m. (Eastern Standard Time). In order to connect to the call, please dial up ten minutes before the conference is scheduled to begin, at one the following numbers: United States International Identification code The Conference Call and presentation will also be transmitted live over the Internet. For access, go to: A recording of the full Conference Call will be available for replay beginning at 1:00p.m. on October 27, 2015, until November 3, 2015 at 10:59 p.m. To listen to the replay please dial one of the following numbers: United States International Código de Identificación Perfil de la Empresa Since 1996, when ARA became a publicly traded Company, it has been characterized by a diversified product offering and a long-term vision, with a solid financial structure that is reflected in the efficient use of our working capital, liquidity and a moderate level of debt. Consorcio ARA is one of the most profitable of Mexico s home developers and builders because of its extraordinary ability to take advantage of economies of scale and to keep quality standards high and production competitive costs. It has 38 years of experience in the building and marketing of Progresiva, Affordable Entry Level, Middle Income and Residential housing. To date, Consorcio ARA has sold more than 318,000 homes and at present approximately 1,272,000 people live in ARA homes. Consorcio ARA has the strongest credit ratings in the Mexican housing industry from Standard & Poor s and Moody s Investors Service, mxa and A2.mx ( Ba2 global), respectively. Disclaimer The information provided herein by Consorcio ARA may contain forward-looking statements about future events and financial results. The reader should understand that the results obtained may differ from the projections contained in this document, because past results in no way offer any guarantee of future performance. For this reason, the Company assumes no responsibility for any indirect factors or elements beyond its control that might occur inside Mexico or abroad and which might affect the outcome of these projections

15 VIII. Financial Statements Statements of Profit or Loss and other Comprehensive Income Third Quarter 2015 / 2014 Change 3Q15 / 3Q14 January-September 2015 / 2014 Change 9M15 / 9M14 3Q15 % 3Q14 % $ % 9M15 % 9M14 % $ % Revenues 1, , , , Costs 1, , , , Gross profit , , General expenses Income before other (expense) income - net Other (expense) income - net (0.8) (5.1) (118.2) (5.8) (9.2) (268) Income from operations Financial income - net: Interest expense (2.6) (2.2) Capitalized interest expense (48.8) -2.8 (30.6) -1.9 (18.3) 59.8 (101.9) -2.0 (103.8) (1.9) Interest income (7.0) -0.4 (8.2) (14.4) (21.0) -0.4 (23.9) (12.0) Exchange gain - Net (1.3) -0.1 (2.0) (37.1) (4.8) -0.1 (1.5) (3.2) 216 Loss on derivatives (2.0) (69.7) (4.6) (53.2) Equity in earnings of equity method investees (2.7) -0.2 (4.3) (37.1) (9.6) -0.2 (4.0) -0.1 (5.6) (11.7) (58.9) (21.1) (35.6) Income before Income taxes Taxes: ISR deferred (14.6) (381) (34.9) (217) ISR current (53.3) (72.9) (39.4) (21.2) Net Income Other comprehensive income Comprehensive income Depreciation (2.6) (12.2) (6.0) (9.4) NCFR recognized in costs (14.0) (24.0) (78.6) (44.7) EBITDA

16 Statements of financial position ASSETS CURRENT ASSETS: Amount % Cash and cash equivalents 1, , Accounts Receivable (15.0) Land for development 4, , Work in process (mainly) 8, , Total Inventories 13, , Other Current Assets NON-CURRENT ASSETS: 16, , Investment properties (17.8) Property, machinery and equipment Net (6.5) Investments in equity method investees Employee benefits (100.0) (3.1) TOTAL ASSETS 16, , CURRENT LIABILITIES: Bank Loans Financial Leasing Suppliers Other current liabilities NON-CURRENT LIABILITIES: As of Sep'15 As of Dec'14 Change 2, , Bank Loans 1, , Financial Leasing Deferred income tax 1, , Other Long Term Liabilities (47.2) 3, , TOTAL LIABILITIES 5, , STOCKHOLDERS' EQUITY 11, , LIABILITIES AND STOCKHOLDERS' EQUITY 16, ,

17 Statements of changes in stockholders equity Common stock Additional paid-in capital (A) Reserve for acquisition of own stock Retained earnings Noncontrolling interest Total stockholders equity Balances as of January 1, , ,227.1 Net repurchase of own stock Decline in non-controlling interest Net comprehensive income Balances as of September 30, , ,591.5 Balances as of January 1, , ,732.6 Net repurchase of own stock Net comprehensive income Balances as of September 30, , ,162.5 (A) Includes Premium on sale of repurchased stock

18 Statements of cash flow Jan-Sep'15 Jan-Sep'14 Operating activities: Income before taxes Items related to investing activities: Depreciation Interest income Equity in earnings of equity method investees Items related to financing activities: Interest expense (Increase) decrease in: Trade accounts receivable - Net Inventories Other assets Increase (decrease) in: Suppliers Other liabilities Income taxes paid Net cash provided by operating activities Investing activities: Investments in equity method investees Purchasing of property, machinery and equipment Disposal of other permanent investments Dividends received from equity method investees Collection of interest Cash excess to apply to financing activities Financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year 1, Cash and cash equivalents at end of year 1, ,