JAVER REPORTS STRONG FCF GENERATION, REVENUES AND EBITDA FOR 9M16

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1 JAVER REPORTS STRONG FCF GENERATION, REVENUES AND EBITDA FOR 9M16 Monterrey, Nuevo Leon, Mexico October 20, Servicios Corporativos Javer S.A.B. de C.V., (BMV: JAVER) ( Javer or the Company ), one of the largest housing development companies in Mexico, today announced financial results for the third quarter ( 3Q16 ) and first nine month ( 9M16 ) periods ended September 30, All figures presented in this report are expressed in nominal Mexican pesos (Ps.), unless otherwise specified. 3Q16 Highlights: Units titled decreased 3.7% to 4,339 units in 3Q16 from 4,507 units in 3Q15. In 9M16, units sold declined 1.0% to 13,551 units from 13,691 units in 9M15. Net Revenues increased 4.3% to Ps. 1,636.9 million in 3Q16 from Ps. 1,568.8 million in 3Q15; revenues were Ps. 5,119.6 million in 9M16, representing a double digit growth of 11.6% compared to Ps. 4,586.4 million in 9M15, which was driven by an improved sales mix, a higher proportion of residential revenues and a higher average sales price. EBITDA increased 11.8% to Ps million in 3Q16 from Ps million in 3Q15. In 9M16, EBITDA grew 14.0% to Ps million from Ps million in 9M15, as a result of higher margins derived from the effects mentioned above. EBITDA margin increased 0.3 percentage points to 12.7% in 9M16 from 12.4% in 9M15. Net Result was Ps. (20.1) million in 3Q16 compared to Ps. (395.5) million in 3Q15, primarily due to lower interest expenses and lesser FX losses as a result of the debt reduction. This result is mainly explained by a change in the FX loss from Ps million in 3Q15 to Ps million in 3Q16. In 9M16 net result was Ps. (349.2) million, compared to Ps. (528.3) million in 9M15. The 9M16 net result was primarily affected by the Ps in costs incurred from the tender offer for the Company s 2021 Notes executed in 1Q16 along with Ps million in FX losses. Net income (loss) per share was Ps. (0.06) as of September 30, 2016 and Ps. (3.86) as of September 30, Positive FCF totaled Ps million in 3Q16 compared to Ps. (313.4) million in 3Q15. For 9M16, the Company generated Ps million, which is more than double the amount of Ps million generated in 9M15. The increases were driven by an efficient inventory management and lower interest expenses due to the de-leveraging of our balance sheet. Dividends: On April 29, 2016, our General Shareholders Meeting approved a dividend payment of Ps per share, in accordance with the parameters of the Company s

2 dividend policy. The dividend is being paid in 4 installments. The third installment of Ps per share was distributed on October 18, The first two installments were paid on May 18, 2016 and July 19, 2016, respectively, and were also equivalent to Ps per share. The fourth and final payment of Ps per share will take place in January All dividend payments have been totally funded with the free cash flow generated in the year. CEO STATEMENT Mr. Eugenio Garza, Javer s Chief Executive Officer commented, The third quarter of 2016 provided yet again, further evidence that our flexible business model continues to deliver strong results under a continuously changing market environment. Although our unit volumes declined compared to last year, the deliberate change in geographic and product segment mix we started to implement since last year, continues to payoff handsome returns. Our average price is up 13.9% year over year and with it our accumulated revenues and operating profit for the year. Moreover, we continue to maintain extreme discipline of our investments and working capital to be able to translate this increased profitability into free cash flow. During the year we have generated Ps million in free cash flow, which is more than enough to fund our generous dividend payout ratio while still maintaining adequate reserves for prudent and balanced growth. During the quarter, subsidy disbursements in the country continued on their expected downward trend as most of the resources allocated in our target states began to dry out. As of Sept 30, Ps. 6.9 million of the total Ps. 9.3 million subsidy budget had been spent, practically exhausted in our states of interest. We still expect a relatively small disbursement for the fourth quarter in the states where we have presence as reallocations and year-end adjustments free up the last remaining resources. Nonetheless our subsidy sales as a percentage of total sales for the year stands at 42.3% compared to 54.1% last year, with a downward trend for the fourth quarter. Notwithstanding this, our ability to quickly shift production and sales mixes towards other segments continues to help us attenuate this effect. The 2017 subsidy budget continues to be discussed within the context of a very austere fiscal stance by the federal government. Preliminary figures suggest that housing subsidies will probably be about 30% lower in We believe that more than the absolute amount, the most important part of the 2017 subsidy program will be in the detailed operational rules. We anticipate that both the maximum amount per home, priority assignment and other rules will likely change to try to maximize the social impact of the program within the absolute peso amount constraint. At the margin and despite how the program ends up being funded, the Company would prefer to know the policies in advance, and would prefer that the authorities provide a level playing field, and the continuity of the exercise of the program until resources are exhausted rather that the queuing system that is currently employed. Notwithstanding this, we are confident that our operational capabilities will allow us to profitably deliver solid results under any scenario that ends up playing out.

3 On the financing front we have made some progress, albeit slow, in planning a total refinancing package that will lower all our financing cost and eliminate our FX exposure completely. We hope to have more concrete news on this front in the near future. On the new development front, we continue to experience permitting delays in a couple of our most important expected openings for These delays have already caused titlings to be below our expected volumes to date and will likely also affect 4Q volumes. Nonetheless, we have been able to recoup these losses so far with better mix, and expense control which should continue to partially mitigate the impact through the end of On a final note, we want to highlight an exciting new pilot initiative we just launched in conjunction with Conavi and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) or the German Corporation for International Cooperation, and the state of Nuevo Leon. On October 13, we broke ground on a cluster of 52 residential units within our Bosque Boreal project, which will be constructed under the NAMA Facility Guidelines. Through subsidies provided by the multilateral institution and Conavi we will be building homes with advanced eco-friendly technologies and building materials which will reduce energy consumption and CO2 emissions by up to 70% approximately, when compared to our current specifications. These energy savings translate directly into higher purchasing power for our customers and improve not only their quality of life but the quality of the environment for future generations. We are confident that these kinds of initiatives will pave the way to a secular trend of innovation in building materials and practices that will provide benefits to the ecosystem and everyone involved in the industry. UNITS SOLD AND NET REVENUES Units Sold: The Company titled 4,339 units in 3Q16, a 3.7% decrease compared to 4,507 units in 3Q15. The residential segment was the only one to show a positive trend with a 32.2% growth compared with 3Q15 figures; the affordable entry level (AEL) and middle income segments decreased 5.7% and 7.6%, respectively. Despite the decline, the sales mix was focused toward the middle income segment, which represented 62.4% of total units sold and 53.8% of total revenues in 3Q16; while AEL units comprised 25.9% of total homes titled and 16.7% of total revenues during the same period. For the first nine months of 2016, homes titled decreased 1.0% to 13,551 units compared to 13,691 units in 9M15. The residential segment had a 107.7% increase YOY, while the middle income segment remained flat and the AEL segment decreased 22.7%. For 9M16, middle income segment homes represented 63.6% of total units sold and 55.3% of total revenues. AEL units comprised 24.6% of total homes titled and 15.7% of total revenues. Residential homes represented 11.8% of total units sold and 27.4% of total revenues. Commercial lot sales decreased 50.4% to Ps million in 3Q16 and declined 31.3% to Ps million in 9M16, as no bulk sales were registered during the quarter.

4 Prices: Javer s average home sales price increased 10.0% in 3Q16 to Ps thousand from Ps thousand in 3Q15; while the average overall sales price in 9M16 also registered a double digit growth of 13.9% to Ps thousand from Ps thousand in 9M15. In both periods, the rise in the average sales prices is due to the improved sales mix with a higher focus on the middle income and residential segments. Mortgage Provider Mix: Infonavit continued to be Javer s primary mortgage provider. During 3Q16, Infonavit (including Cofinavit) represented 93.9% of total units titled compared to 95.5% in 3Q15. In 9M16, units sold with an Infonavit or Cofinavit loan comprised 93.8% of the total compared to 97.1% in 9M15. The Company has been able to increase its Fovissste and financial institutions mortgage mix as the residential segment and its presence in the State of Mexico has grown. Subsidies: During 3Q16, subsidies represented 29.1% of total units sold compared to 19.0% in 3Q15. Vertical housing absorbed 64.3% of the total subsidies during the period compared to 33.1% in 3Q15. In 9M16, 42.3% of units were sold with a subsidy compared to 54.1% in 9M15. Vertical housing represented 41.2% of the total subsidies absorbed in 9M16 compared to 28.5% in 9M15. GROSS PROFIT / MARGIN Gross Profit increased 3.4% to Ps million in 3Q16 and 14.4% in 9M16 to Ps. 1,370.2 million, primarily due to the improvement of the sales mix with a greater focus towards the middle income segment, a greater proportion of residential revenues, a higher average sales price, and an effective cost containment program. Gross Margin decreased 0.2 percentage points in 3Q16 to 25.9% compared to 26.1% in 3Q15, and improved 0.7 percentage points in 9M16 to 26.8% from 26.1% in 9M15. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Selling, General and Administrative Expenses increased 1.2% in 3Q16 to Ps million from Ps million in 3Q15. For 9M16, SG&A grew 15.3% to Ps million from Ps million in 9M15, as a result of a higher number of personnel in the State of Mexico and Quintana Roo, investments in new IT systems, expenses related to regulatory requirements that Javer must comply with as a publicly-traded entity; along with a non-cash charge of Ps million due to an accelerated depreciation of assets that were left in disuse given the recent move of our headquarters to a new building.

5 EBITDA / MARGIN EBITDA increased 11.8% to Ps million in 3Q16 from Ps million in 3Q15. In 9M16, EBITDA grew 14.0% to Ps million from Ps million in 9M15, as a result of higher margins derived from the effects mentioned above. EBITDA margin increased 0.3 percentage points to 12.7% in 9M16 from 12.4% in 9M15 NET RESULT Net Result was Ps. (20.1) million in 3Q16 compared to Ps. (395.5) million in 3Q15, primarily due to lower interest expenses and lesser FX losses as a result of the debt reduction. This result is mainly explained by a change in the FX loss from Ps million in 3Q15 to Ps million in 3Q16. In 9M16 net result was Ps. (349.2) million, compared to Ps. (528.3) million in 9M15. The 9M16 net result was primarily affected by the Ps in costs incurred from the tender offer for the Company s 2021 Notes executed in 1Q16 along with Ps million in FX losses. Net income (loss) per share was Ps. (0.06) as of September 30, 2016 and Ps. (3.86) as of September 30, Comprehensive Income, which includes MTM gains and losses on derivatives to hedge the coupons of the foreign exchange exposure on debt, was Ps. (7.9) million in 3Q16 and Ps. (395.5) million in 9M16. ASSETS / LIABILITIES Cash and cash equivalents were Ps million as of September 30, WORKING CAPITAL As of September 30, 2016, the working capital cycle was 292 days, which remained relatively flat compared to 288 days registered in June 30, The Company s efficient inventory management contributed to maintain unchanged its work in progress inventory turnover, while its collection period remained in 75 days as in the last two quarters, a 9 days decrease compared to the receivable turnover of 86 days registered in 1Q16. FREE CASH FLOW Positive FCF totaled Ps million in 3Q16 compared to Ps. (313.4) million in 3Q15. In 9M16, the Company generated Ps million, which is more than double the amount of Ps million generated in 9M15. The increases were driven by an efficient inventory management and lower interest expenses due to the de-leveraging of its balance sheet.

6 DEVELOPMENT PIPELINE Home Starts increased 12.2% to 4,902 units in 3Q16 compared to 4,369 units in 3Q15, as the Company is preparing to launch 5 new developments in Aguascalientes, Queretaro, Quintana Roo and State of Mexico, and ramping up inventory for the first few months of Home Completions increased 1.8% to 4,579 units in 3Q16 from 4,499 in 3Q15, in line with the increase in construction spend in the quarter. Finished Home Inventory increased to 2,262 units as of September 30, 2016 compared to 2,022 units as of June 30, 2016 as the rise in home completions impacted the replenishment of Javer s finished home inventory. LAND RESERVES As of September 30, 2016, the Company s total land bank reached approximately 95,566 units, of which approximately 65.8% were owned land reserves and 34.2% were held through land trust agreements. DEBT AND DERIVATIVES EXPOSURE As of September 30, 2016, Javer continued to possess available credit facility lines in excess of Ps million. These credit lines could be used at any time as long as Javer is in compliance with its bond incurrence covenants. Javer maintained derivative positions to hedge its currency exposure related to the 2021 Note coupons and principal. As of September 30, 2016 the weighted hedge of the coupons was 2.0 years and Javer will include additional hedges to be in line with its hedging strategy. As of September 30, 2016, the Company possessed US$ 23 million in available credit lines from derivative counterparties to finance any potential negative carrying values on the Company s derivative contracts. As of September 30, 2016, Total Debt / LTM EBITDA reached 2.55x; Net Debt to EBITDA was 1.95x; EBITDA interest coverage reached 2.52x. Servicios Corporativos Javer S.A.B. de C.V.

7 cordially invites you to its Third Quarter 2016 Conference Call & Webcast Presentation Friday, October 21, :00 a.m. New York Time 10:00 a.m. Mexico City/Monterrey Time Presenting for Javer: Mr. Eugenio Garza, Chief Executive Officer Mr. Felipe Loera Reyna, Chief Financial Officer To access the call, please dial: 1(800) from within the U.S. 1(334) from outside the U.S. Passcode: 2366 To access the live and archived webcast presentation, visit: A replay of this call will be available for 30 days. To obtain the replay, please call: 1(877) from within the U.S. 1(334) from outside the U.S. Passcode:

8 About Javer The Company is the largest housing development company in Mexico regarding the number of units sold through the Infonavit lending system in 2015, according to the Report of loans granted by developer published in Infonavit s website (Reporte de créditos por oferente). The Company has presence in the states of Nuevo León, Jalisco, Querétaro, Estado de México, Aguascalientes, Quintana Roo, Tamaulipas, and recently in Mexico City. The Company offers three housing segments in terms of cost: (i) affordable entry level (AEL), (ii) middle income and (iii) residential housing. As of December 31, 2015 revenues from AEL segment were Ps. 1,301.1 million, middle income segment of Ps.3,601.8 million and residential segment of Ps.1,337.9 million; which represented 20.1%, 55.8%, 20.7% of total revenues, respectively. As of December 31, 2014 revenues from AEL segment were Ps.2,106.9 million, middle income segment of Ps.2,882.1 million and residential segment of Ps million; which represented 34.8%, 47.6%, 15.0% of total revenues, respectively. As of December 31, 2013 revenues from AEL segment were Ps.1,930.5 million, middle income segment of Ps.2,690.4 million and residential segment of Ps million; which represented 35.6%, 49.6%, 12.8% of total revenues, respectively. Disclaimer This press release may include forward-looking statements. These statements relate to projections, future developments and business strategies and can be identified by the use of terms and phrases such as "anticipates," "believes," "can," "will," "estimates," "expects," "prevents", "intends", "pretends", "may", "plans"," predicts", "projects", "aims", "strategy" and similar terms and phrases, and may include references to assumptions. These forward-looking statements include, without limitation, those regarding the Company s future financial position and results of operations, the Company s strategy, plans, objectives, goals and targets, future developments in the markets in which the Company participates or are seeking to participate or anticipated regulatory changes in the markets in which the Company operates or intends to operate. The Company cautions potential investors that forward looking statements are not guarantees of future performance and are based on numerous assumptions and that the Company s actual results of operations, including the Company s financial condition and liquidity and the development of the Mexican mortgage finance industry, may differ materially (and may be more negative than) from the forward-looking statements contained in this press release. In addition, even if the Company s results of operations are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. These forward-looking statements speak only as of the date of this press release and the Company assumes no obligation to revise or update any forward-looking statement, whether as a result of new information or new events or developments obligation. More detailed information on these and other factors is included in the Offer to Purchase. Source: Servicios Corporativos Javer, S.A.B. de C.V. Av. Juárez No Colonia Centro, Monterrey, Nuevo León, México