Strategic Update. October 2016

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2 Strategic Update October 2016

3 Disclaimer This presentation contains certain forward-looking statements and information relating to Elementia, S.A. de C.V.( Elementia ) that reflect the current views and/or expectations of Elementia and its management with respect to its performance, business and future events. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like anticipate, believe, estimate, expect, forecast, plan, predict, project, target or any other words or phrases of similar meaning. Such statements are subject to a number of risks, uncertainties and assumptions. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed or implied in this presentation, including: general economic, political and business conditions in Mexico and the other markets in which we operate; the performance of the global financial markets and economic crises, as well as our ability to refinance our financial obligations, as necessary; competition in our industry and markets; management s expectations and estimates regarding our future financial performance and our funding plans and programs; limitations on our access to sources of financing on competitive terms or otherwise, and compliance with covenants by which we are bound; our ability to service our debt; our capital expenditure plans; fluctuations in exchange rates, market interest rates or rates of inflation or the conversion of currencies; existing and future laws and governmental regulations, including environmental laws, and liabilities or obligations arising thereunder and adverse administrative or judicial rulings relating to us; policies and interpretations in respect of acquisitions; increases in insurance premiums; changes in market prices, demand and consumer preferences and competitive conditions; cyclicality and seasonality in our results of operations; our ability to implement our strategy; increases in the prices of goods and/or services supplied to us and fluctuations in the prices of raw materials in commodities markets; the imposition of price controls on the products we sell; trade barriers; technological innovations; the costs, difficulties, uncertainties and regulations related to mergers, acquisitions or joint ventures; our ability to complete acquisitions, for regulatory or other reasons, and to successfully integrate the operations of our acquired businesses; liability claims including claims related to health, safety and environmental matters and claims arising from class action laws in Mexico or other jurisdictions in which we operate; failures in our information technology systems, including our data and communications systems; the effect of changes in accounting principles, new legislation, actions by regulatory authorities, government bulletins and monetary or fiscal policy in Mexico and the other markets in which we operate; declines in sales of our products by independent distributors; our ability to retain certain key personnel and to hire additional key personnel; our ability to realize synergies from our mergers and acquisitions activity; delays by our suppliers or the inability to source, on terms acceptable to us or otherwise, inputs required by us to produce the products which we sell; investigations by governmental authorities; and other risk factors discussed under Risk Factors in the Offering Memorandum. All forward-looking statements in this presentation are based on information and data available as of the date they were made, and Elementia undertakes no obligation to update them in light of new information or future developments. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur and are not guarantees of future performance. Because of these uncertainties, you should not make any investment decision based upon these estimates and forward-looking statements. This presentation and its contents are proprietary information and may not be reproduced or otherwise disseminated in whole or in part without Elementia s prior written consent. This presentation is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. These securitieshavenotbeenandwillnotberegisteredundertheu.s. SecuritiesActof1933,asamended(the SecuritiesAct )oranystatesecuritieslawsandmaynotbeofferedor sold in the United States absent registration or an applicable exemption from registration requirements. Accordingly, the securities are being offered only: (1) to qualified institutional buyers(as defined in Rule 144A under the Securities Act) and(2) outside the United States to non-u.s. persons in compliance with Regulation S under the Securities Act.

4 The commitment of Elementia s shareholders will strengthen through a capital increase Rights Offering Amount mm USD: 220 Use of proceeds: 55% stake of Giant Holding Inc. Potential definitions for non-taken shares: a) Controlling Shareholders kept the nontaken shares. b) Distribution to Shareholders according to ownership. c) Re-distribution of non-taken shares: a) A current Shareholder b) A third party d) Cancelation of non-taken shares Oct-17 Shareholders Meeting Oct-18 Record 15 days Confirmation & Contribution Nov-2 1 st stage contribution Nov-4 2 nd stage contribution Mon Nov-7 Capital availability Wed Nov-9 Acquisition

5 which supports our growth strategy of expanding our footprint in core businesses Core inorganic growth strategy 1. Building Materials, in particular Cement 2. Countries in which we have operations 3. Market opportunities 4. Synergies Cement Plant (5) (3) Building Systems Plant (20) Metal Products Plant (3) Corporate HQ Int l Sales Office Successful M&A track record Financial discipline - conservative leverage ratio Value creation

6 Giant is the right fit for our growth strategy Acquisition of Giant s 55% controlling stake 2.8 million tons/year 3 Cement plants 2 aggregate quarries 6 cement terminals 4th largest cement producer in the East coast

7 by contributing to the profitable creation of value with a positive outlook Greenfield US Vulcan-Argos 2014 US Martinsburg-Argos 2016 US USD 400/MT USD 247/MT USD 300/MT Giant-Elementia 2016 US USD 250/MT competitive acquisition value Capacity utilization rate Positive trends Housing starts Cement consumption Pricing

8 in an attractive market, at the right time Housing Starts in the US (Housing Starts; 000 s) 2,500 US Cement demand evolution (cement demand; MT) CAGR = 5% 2,000 CAGR = 13.4% 1,500 1, Source: US Census Bureau to December 2015, new privately owned housing units started, not seasonally adjusted average prices at higher levels than pre-recession and expected improvement US cement price trend (US/MT) CAGR = 4% room for improvement

9 in an attractive market, at the right time Dragon Thomaston, ME Cement Facility Cement Terminal Keystone Bath, PA Giant Harleyville, SC 4 th largest cement producer in the East coast

10 through the Power of Oneness Optimize processes, operating costs and working capital Implement operating standards and best practices 5 th Integrate IT and control systems primarily through SAP Focus on materializing synergies (1) Acquired Results EBITDA of US$1 million in 1999 to US$17 million in 2014 ~US$3 million loss in 2007 to US$12 million profit in 2014 Improved gross profit by US$14 million, turning around a lossmaking operation

11 Contact information: Juan Francisco Sanchez Kramer