Vitro Reports 3Q 14 Sales up 1.3% YoY and 5.1% Decline in EBITDA

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1 Vitro Reports 3Q 14 Sales up 1.3% YoY and 5.1% Decline in EBITDA San Pedro Garza García, Nuevo León, Mexico, October 28, 2014 Vitro, S.A.B. de C.V. (BMV: VITROA), hereinafter Vitro or the Company, the leading glass producer in Mexico, today announced its unaudited results for the third quarter Third Quarter 2014 Highlights Consolidated sales were up 1.3 percent year-on-year (YoY) to US$433 million driven by positive results in the Glass Containers business unit across all segments, except CFT (Cosmetics, Fragrance and Toiletries). In the Flat Glass business unit, a solid performance in sales to automotive market partially compensated for the impact of lower domestic and export sales to the construction segment. A strong performance in Glass Containers, driven by increasing sales volume and a strong price-mix, along with positive automotive market sales in Flat Glass, partially offset the decline in EBITDA. During 3Q 14, EBITDA was US$100 million, reflecting lower sales volumes to the construction segment, both domestic and exports, lower capacity utilization in one of our float glass furnaces, a 15.3 percent increase in average natural gas prices and a 0.9 percent year-over-year peso depreciation (quarterly average). Aided by higher a cash balance and current debt amortization, Net debt decreased by US$34 million to US$990 million, from US$ 1,024 recorded in the previous quarter and by US$81 million from US$1,071 in December Commenting on Vitro s outlook and performance, Mr. Adrián Sada Cueva, Chief Executive Officer, said This past quarter we achieved important milestones in our strategy and laid the foundations for the future profitable growth of our company. After many months of hard work, our team was able to earn a very important long term contract to supply beer bottles to Constellation Brands with an estimated sales value of approximately US$950 million during the next 7 years. Our board also authorized an investment for a furnace in Brazil to supply the CFT market, for which we entered into an agreement with the state of Bahia to install our new plant in that state. We expect to see the benefits of the Constellation contract starting November of this year and expect to be sourcing the full run rate of the contract on January, 2016 after starting up a furnace exclusively dedicated to this project. Regarding our plant in Brazil we expect to see the positive effect during the second half of 2016, when we have the Brazilian plant installed and operational. Regarding the financial results of this quarter, our Glass Containers business delivered a very strong performance with sales up 6.8 percent and EBITDA growth of 14.7 percent, despite continued soft macro conditions in some of our markets. Sales to the Beer segment remained very strong, while the Soft Drinks, Food and Wine and Liquor segments all reported a good performance resulting in a solid price mix. These developments more than offset continued weak industry conditions for CFT. Our flat glass automotive business also continued to report sustained positive results driven by the continued recovery of the OEM market. FINANCIAL HIGHLIGHTS* 3Q'14 3Q'13 % Change Consolidated Net Sales % Glass Containers % Flat Glass % Cost of Sales % Gross Income % Gross Margins 28.7% 31.5% -2.8 pp SG&A % SG&A % of sales 13.1% 15.0% -1.9 pp EBIT (3) % EBIT Margins 15.5% 16.5% -1 pp EBITDA (3) % Glass Containers % Flat Glass % EBITDA Margins 23.2% 24.8% -1.6 pp Net income from continuing operations Net income (loss) from discontinued operations Net Income attributable to controlling interest % - - #DIV/0! % Total Debt (1) 1,241 1, % Short Term Debt % Long Term Debt 942 1, % Cash & Cash Equivalents (2) % Total Net Debt (1) 990 1, % * Million US$ Nominal (1) Total debt includes account receivables debt programs according to IFRS. (2) Cash & Cash Equivalents include restricted cash on our accounts receivables debt programs and lease contracts. (3) EBIT and EBITDA are presented before other expenses (income). Vitro 3Q 14 Page 1

2 During this quarter, one of our float glass furnaces, which represents around a third of our capacity, had an unexpected technical issue, which ended affecting dramatically the capacity utilization of the furnace. As a consequence, overall Flat Glass results were impacted by lower sales volumes to the construction market, reflecting our capacity constrains during this quarter. We did, however, benefit from a more favorable price mix, which did help to partially offset the impact of lower sales volumes and higher cost absorption. Nevertheless, Flat Glass EBITDA was down significantly this quarter, when compared to the same period of the prior year mainly due to this incident. Corrective measures have been implemented and we have significantly improved our flat glass output to be able to adequately supply the market going forward. Strengthening the balance sheet has been a key priority for the Company. Mr. Claudio Del Valle, Chief Administrative and Financial Officer, noted: We achieved a significant increase in our cash balance reaching US$251 million from US$213 million YoY. Net debt, in turn, declined by US$34 million to US$990 million, from US$1,024 million in the previous quarter, while compared with the closing of 2013, net debt has been reduced by US$81 million, from US$1,071 in December 2013, reflecting a higher cash balance and a reduction in gross debt. All in all, we remain focused on further strengthening our balance sheet, with plans to refinance our US$235 million note due April Despite the productivity incident in the Flat Glass business unit and the soft industry conditions in some of the markets Vitro serves, we continue to make headway in further building our business and consolidating Vitro as a stronger, more productive and innovative Company, expecting to close this year with overall improved results. Our outlook for the end of the year is positive. We are expecting a solid last quarter, with strong demand expected in the container segments supported by the start of supply to Constellation as well as better availability of flat glass to serve our market. concluded Mr. Sada. Financial statements were prepared according to International Financial Reporting Standards (IFRS). The Peso figures included in the document are presented in nominal Pesos which could affect its comparability. Dollar figures are in nominal US dollars and are obtained by dividing nominal pesos for each month by the end of month fixed exchange rate published by Banco de México. In the case of the Balance Sheet, US dollar translations are made at the fixed exchange rate as of the end of the period. Certain amounts may not sum due to rounding. All figures and comparisons are in US dollar terms, unless otherwise stated, and may differ from the peso amounts due to the difference in exchange rates. Vitro 3Q 14 Page 2

3 REVIEW OF CONSOLIDATED RESULTS Sep'14 Sep'13 Inflation in Mexico Quarter 1.0% 0.6% Accumulated 2.1% 1.9% LTM 4.2% 3.4% Inflation in USA Quarter -0.2% 0.3% Accumulated 2.1% 2.0% LTM 1.6% 1.2% Exchange Rate Closing Average (Acumulated) Average (LTM) Average (Quarter) Devaluation (Apreciation) Accumulated 2.7% 1.6% LTM (closing) 2.0% 2.4% Quarter (average) YoY 0.9% -0.1% Accumulated (Average) 2.7% -2.9% CONSOLIDATED SALES Consolidated Net Sales for 3Q 14 increased 1.3 percent to US$433 million, from US$427 million during 3Q 13, reflecting a solid performance across all segments in the Glass Containers business unit, except CFT, and positive results in the Automotive segment in Flat Glass. These increases more than offset the impact from the 0.9 percent year-over-year peso depreciation (quarterly average), lower construction sales volumes in Flat Glass, both to the domestic and export markets, and continued weak sales volumes in the Cosmetics segment in Glass Containers. Table 1 - SALES Million of Mexican Pesos Million of US Dollars YoY% YoY% YoY% YoY% 3Q'14 3Q'13 Change 9M'14 9M'13 Change 3Q'14 3Q'13 Change 9M'14 9M'13 Change Total Consolidated Sales 5,731 5, ,021 16, ,295 1, Domestic Sales 3,769 3, ,004 10, Export Sales 1,780 1,895 (6.1) 5,514 5,563 (0.9) (6.9) (3.4) Foreign Subsidiaries (2.1) Glass Containers 4,080 3, ,885 11, Domestic Sales 2,591 2, ,376 6, Export Sales 1,435 1,443 (0.6) 4,374 4, (1.5) Foreign Subsidiaries (11.5) (13.9) Flat Glass 1,616 1,797 (10.1) 5,072 5,120 (0.9) (10.9) (3.5) Domestic Sales 1,144 1,216 (5.9) 3,564 3, (6.7) Export Sales (23.6) 1,141 1,358 (16.0) (24.4) (18.2) Foreign Subsidiaries (2.2) (3.1) Glass Containers sales increased 6.8 percent in 3Q 14 to US$308 million, from US$289 million in 3Q 13, as a result of a solid performance across all segments, except CFT (Cosmetics, Fragrance and Toiletries). Strong sales in the Beer segment were a major contributor to this positive performance, as well as solid sales figures in the Soft Drinks, Food and Wine and Liquor segments. These factors offset the impact of continued lower sales volumes in the CFT segment, due to ongoing weak industry conditions. Export sales declined 1.5 percent to US$108 million in 3Q 14, from US$110 million in 3Q 13, also affected by a soft consumer environment in the CFT segment. Flat Glass sales declined to US$122 million in 3Q 14, from US$137 million in 3Q 13. Despite positive results in the Automotive segment resulting from higher sales volumes to OEMs (Original Equipment Manufacturers) and the AGR market (Automotive Glass Replacement), as well as a healthy price mix in the Construction segment, Flat Glass sales were affected by lower sales volumes to both, domestic and export construction markets. The decline in sales volumes to the construction market was mainly due to capacity constraints. Foreign subsidiaries sales remained at US$10 million for both periods, with a slight decrease in sales volumes of the Colombian subsidiary in 3T 14. Vitro 3Q 14 Page 3

4 EBIT AND EBITDA Despite the outstanding performance in Glass Containers and positive results in the Automotive segment in Flat Glass, EBIT and EBITDA were affected by a 0.9 percent year-over-year peso depreciation (quarterly average), a 15.3 percent increase in average natural gas prices (quarterly average) and lower capacity utilization in one of the float glass furnaces, which affected fixed cost absorption and margins in the Flat Glass business unit. Consolidated EBIT decreased 4.8 percent to US$67 million in 3Q 14, from US$71 million in 3Q 13. EBIT margin declined 100 basis points to 15.5 percent, from 16.5 percent in the same period last year. Consolidated EBITDA decreased 5.1 percent to US$100 million in 3Q 14, from US$106 million in 3Q 13, while EBITDA margin declined 160 basis points to 23.2 percent from 24.8 percent in the same period last year. Table 2 - EBIT & EBITDA (1) (2) Million of Mexican Pesos Million of US Dollars YoY% YoY% YoY% YoY% 3Q'14 3Q'13 Change 9M'14 9M'13 Change 3Q'14 3Q'13 Change 9M'14 9M'13 Change Consolidated EBIT (3.8) 2,449 2, (4.8) (2.0) Margin 15.6% 16.6% -1 pp 14.4% 14.8% -0.4 pp 15.5% 16.5% -1 pp 14.4% 14.8% -0.4 pp Glass Containers ,260 2, Margin 22.4% 19.2% 3.2 pp 19.0% 18.7% 0.3 pp 22.4% 19.2% 3.2 pp 19.0% 18.8% 0.2 pp Flat Glass (2) (0) Margin -0.1% 9.6% -9.7 pp 4.8% 3.9% 0.9 pp -0.2% 9.6% -9.8 pp 4.8% 3.8% 1 pp Consolidated EBITDA 1,334 1,392 (4.1) 3,770 3,826 (1.4) (5.1) (4.3) Margin 23.3% 24.8% -1.5 pp 22.2% 23.3% -1.1 pp 23.2% 24.8% -1.6 pp 22.1% 23.3% -1.2 pp Glass Containers 1,241 1, ,230 3, (1) Margin 30.4% 28.3% 2.1 pp 27.2% 28.0% -0.8 pp 30.4% 28.3% 2.1 pp 27.1% 28.0% -0.9 pp Flat Glass (65) (65) Margin 6.2% 15.8% -9.6 pp 11.0% 10.3% 0.7 pp 6.1% 15.7% -9.6 pp 11.0% 10.3% 0.7 pp (1) EBIT and EBITDA are presented before other expenses (income) (2) Consolidated EBIT and EBITDA includes Corporate subsidiaries. Glass Containers EBIT increased to US$69 million in 3Q 14, from US$55 million in 3Q 13 while EBITDA increased to US$94 million, from US$82 million in the same period. EBIT and EBITDA margins rose 320 basis points and 210 basis points to 22.4 percent and 30.4 percent, from 19.2 percent and 28.3 percent, respectively. EBIT and EBITDA growth was primarily boosted by an outstanding performance across all Glass Containers segments, except CFT. Strong sales volumes and price mix in the Beer and Soft Drinks segments, coupled with healthy sales volumes in the Food segment, offset the effect of a continued weak performance in CFT, as well as the impact of a 0.9 percent year-over-year peso depreciation (quarterly average) and a 15.3 percent increase in average natural gas prices (quarterly average). Flat Glass EBIT resulted in a breakeven figure in 3Q 14, while EBITDA decreased to US$8 million, from US$22 million in the same period last year. Results in Flat Glass business unit were mainly affected by lower sales in some of the markets the Company participates in due to capacity constraints, a 0.9 percent year-over-year peso depreciation (quarterly average) and a 15.3 percent increase in average natural gas prices. These events were partially offset by a healthy growth in the Automotive segment and a solid price mix in Construction, despite the lower sales volumes. Vitro 3Q 14 Page 4

5 NET FINANCIAL COST Table 3: Net Financial Cost Million of Mexican Pesos Million of US Dollars YoY% YoY% YoY% YoY% 3Q'14 3Q'13 Change 9M'14 9M'13 Change 3Q'14 3Q'13 Change 9M'14 9M'13 Change Net Interest Expense (318) (179) 78.2 (860) (855) 0.7 (24) (13) 78 (65) (67) 2 Other Financial (Expenses) Income (1) (76) (68) 12.0 (241) (252) 4.7 (6) (5) 11 (18) (20) 7 Foreign Exchange Gain (Loss) (492) (144) (479) (161) (37) (10) 268 (35) (8) 327 Total Financing Result (886) (390) (1,580) (1,268) 24.5 (66) (29) 132 (118) (95) 25 (1) Includes natural gas hedgings and expenses related to debt restructuring. During 3Q 14 the Company s Net Financial Cost was US$66 million, compared to a Net Financial Cost of US$29 million in 3Q 13. The significant increase in Net Financial Cost was mainly driven by a higher Foreign Exchange ( FX ) Loss and an increase in net interest expenses. FX Loss of US$37 million in the quarter reflects a 3.6 percent peso depreciation (at the close of the quarter), compared to a lower FX Loss of US$10 million in 3Q 13, when the peso depreciated only 1.1 percent. Lower interest income during 3Q 14 also contributed to a rise in Net Interest expenses to US$24 million, from US$13 million in 3Q 13. TAXES Table 4: Taxes Million of Mexican Pesos Million of US Dollars YoY% YoY% YoY% YoY% 3Q'14 3Q'13 Change 9M'14 9M'13 Change 3Q'14 3Q'13 Change 9M'14 9M'13 Change Accrued Income Tax Deferred Income Tax (gain) (104) (56) (305) -- (8) (4) (23) -- Total Income Tax (51) (4) During 3Q 14 the Company posted a lower Accrued Income Tax of US$4 million, compared to US$17 million in the same period last year. This factor, coupled with a higher Deferred Income Tax gain of US$8 million, compared to US$4 million in 3Q 13, contributed to a Total Income Tax benefit of US$4 million during 3Q 14, compared to an expense of US$13 million recorded in 3Q 13. Vitro 3Q 14 Page 5

6 CONSOLIDATED NET INCOME Consolidated Net Income (million dollars) During 3Q 14 the Company posted a Consolidated Net Income of US$3 million. Consisting of a US$67 million EBIT and a US$4 million gain in taxes, Consolidated Net Income was primarily affected by US$66 million Net Financial Cost mainly due to a higher Foreign Exchange Loss in 3Q (4) 3 *EBIT Net Financial Cost * EBIT is presented before other expenses (income) Other (Income) Expenses Taxes Consolidated Net Income CONSOLIDATED FINANCIAL POSITION Table 5: Debt Indicators Million of US Dollars, except where indicated 3Q'14 2Q'14 1Q'14 4Q'13 3Q'13 2Q'13 1Q'13 Leverage (1) (Total Debt / EBITDA) (Times) LTM (Total Net Debt / EBITDA) (Times) LTM Total Debt (3)(4) 1,241 1,257 1,258 1,262 1,252 1,405 1,173 Short-Term Debt Long-Term Debt ,149 1,149 1,061 1, Cash and Equivalents (2) Total Net Debt 990 1,024 1,032 1,071 1,039 1, Currency Mix (%) Dlls / Pesos 90 / 9 93 / 7 91 / 9 91 / 9 93 / 7 93 / 7 91 / 9 (1) Financial ratios are calculated using figures in pesos. (2) Cash & Cash Equivalents include restricted cash collateralizing lease contracts and cash on our accounts receivables financing programs. (3) According to IFRS, our accounts receivable securitization trusts are included in the Consolidated Financial Statements of Vitro and Subsidiaries. (4) As part of the agreements to finalize the Company s debt restructuring process, a note of US$235 was issued on April 8, 2013 by a Vitro subsidiary, increasing Net and Total Debt by such amount. As of September 30, 2014, the Company had a cash balance of US$251 million, of which US$15 million was restricted cash including collateralized lease contracts and cash related to Vitro s accounts receivable financing program, compared to a cash balance of US$234 million in the previous quarter. Unrestricted cash as of September 30, 2014 increased 7.8 percent to US$236 million, from US$219 million in the previous quarter. Total Net Debt, which is calculated by deducting cash and cash equivalents classified in short and long term assets, decreased by US$34 million to US$990 million at the end of 3Q 14, compared to US$1,024 million in the previous quarter, reflecting a higher cash balance and current debt amortization during the quarter. Vitro 3Q 14 Page 6

7 Fixed Rate Floating Rate + Fixed Spead Rate Exposure Sep.13 Sep.14 90% 87% 10% 13% Dollars Pesos Currency Exposure Sep.13 Sep.14 93% 90% 7% 9% Banks Market Source Sep.13 Sep.14 32% 27% 68% 73% CASH FLOW Table 6: Cash Flow from Operations Analysis (1) Million of Mexican Pesos Million of US Dollars YoY% YoY% YoY% YoY% 3Q'14 3Q'13 Change 9M'14 9M'13 Change 3Q'14 3Q'13 Change 9M'14 9M'13 Change EBITDA 1,334 1,392 (4.1) 3,770 3,826 (1.4) (5.1) (4.3) Net Interest Paid (3) (24) (843) (554) (52.3) (2) 1 -- (65) (43) (51.4) Working Capital (2) (285) (73) (291.2) (221) (21) (6) (281.6) (16) 3 -- Cash Taxes (paid) recovered (4) (38) (22) (73.3) (388) (194) (99.8) (3) (2) (72.1) (30) (16) (89.2) Cash Flow before Capex & Dividends 987 1,312 (24.8) 2,318 3,110 (25.5) (25.1) (27.8) Capex (5) (217) (281) (22.8) (774) (1,017) (23.9) (16) (21) (23.7) (59) (80) (26.7) Dividends Net Free Cash Flow 771 1,032 (25.3) 1,544 2,093 (26.2) (25.5) (28.3) (1) This statement is a cash flow analysis and it does not represent a Cash Flow Statement according with IFRS (2) Includes: Clients, inventories, suppliers, other current assets and liabilities including IVA (Value Added Tax) (3) Includes interest income, natural gas hedgings and expenses related to debt restructuring (4) Includes PSW (Profit Sharing to Workers) (5) Includes advanced payments which under IFRS is cosidered as other long term assets. During 3Q 14 Vitro reported a Net Free Cash Flow of US$58 million, compared to Net Free Cash Flow of US$78 million in 3Q 13. Along with an EBITDA of US$100, compared to US$106 million in 3Q 13, the decline in Net Free Cash Flow was primarily driven by a Working Capital investment of US$21 million in 3Q 14, compared to US$6 million in 3Q 13, mainly resulting from a decrease in accounts payable and higher other current assets, offset by a recovery in accounts receivable. Capital Expenditures: During 3Q 14 CapEx totaled US$16 million, compared to US$21 million in 3Q 13. Glass Containers represented 82 percent of total CapEx, which was mainly utilized for furnace repairs, maintenance across facilities and manufacturing of molds used in production of glass containers. Flat Glass accounted for the remaining 18 percent, utilized for furnace repairs and maintenance in Flat Glass facilities. Vitro 3Q 14 Page 7

8 KEY DEVELOPMENTS FINANCIAL POSITION AND RESTRUCTURING PROCESS Vitro is exploring a potential transaction involving its Food and Beverage Container business On August 14, 2014, the Company reported its intention to explore a potential offer to sell its Food and Beverage Container business. The Sales and EBITDA of this portion of the business represented 48 per cent and 49 per cent, respectively, of Vitro s consolidated results for The potential transaction would include the operations in México, Bolivia (Vilux) and product distribution of the Business in the United States. On the other hand, the transaction would exclude the CFT business (Vitro Cosmos), the Machinery and Equipment business (Fabricación de Máquinas), the Chemical business (Industria del Álcali), and Vitro s participation in its Central American Joint Venture (Comegua) (jointly, the excluded assets ). The transaction would be subject to comprehensive due diligence by the purchaser, now underway, and to the negotiation of all relevant terms and conditions, including the price. Furthermore, the transaction would need to be approved by Vitro s Board of Directors, as well as by an Extraordinary General Shareholders Meeting and would be subject to obtaining antitrust and other regulatory authorizations. If the potential transaction is completed, Vitro would maintain the Excluded Assets, as well as the businesses serving the Automotive industry and Float Glass for construction. Vitro signs new contract with Constellation Brands On August 14, 2014, the Company announced that it had signed a new contract with existing client Constellation Brands to produce 7,300 million beer bottles for export, with an estimated sales value of $950 million dollars during the life of the contract. The contract will be in place over the next seven years and will triple Vitro s current volume of production for the beer market. As a result, the Company will invest approximately $100 million dollars for the construction of a new furnace at its Monterrey plant, which will be using Vitro s own technology, developed by its subsidiary Fabricación de Maquinas. Operations are expected to commence within 18 months. While the new furnace is under construction, the Company will manufacture its bottle requirements in its Toluca and Querétaro facilities. Both sites will continue producing for Constellation Brands once the new Monterrey furnace is installed and operational. With this new project, Vitro reaffirms its leadership in the market and strengthens the strategic position it has built with one of the best and most extensive glass packaging production systems on the continent. Vitro will build new glass containers facility in Brazil On August 14, 2014, Vitro announced it will invest nearly $90 million dollars for the construction of a new plant to manufacture glass containers in Brazil to serve the cosmetics, fragrances and specialty segments. With this investment, the Company will strengthen its presence in the South American country with the highest per capita consumption of cosmetics in 2013, which is also one of the two largest CFT markets in the world. An important aspect of locating a manufacturing facility in Brazil is that Vitro will now be operating closer to an important portion of its customers that already have significant operations in the region. To date, Vitro has been serving for many years these customers from its facilities in Mexico. The Company expects that the new plant, which will be built using its own technology, commences operations in the second quarter of Meanwhile, Vitro will continue exporting to South America from its plant in Toluca. Vitro s manufacturing presence in Brazil will help to consolidate its position as one of the leading players in the global market for cosmetics and fragrances. With a multi-regional presence, Vitro will be better able to serve its customers, as well as meet market needs and requirements on a more timely basis which is an important consideration of this industry. Vitro 3Q 14 Page 8

9 OTHER KEY DEVELOPMENTS Vitro recognized as one of the top places to work in Latin America On July 28, 2014, the Company reported it had been recognized by the Great Place to Work Institute (GPTWI) as one of the great places to work in Latin America and in Mexico. Also, it ranked once again in the 2014 edition of the Super Companies list presented by Top Companies and Expansion business magazine. Evaluations carried out by the GPTWI determined that the subsidiary Vidrio Plano de México LAN, with facilities in Monterrey and Mexico City, and Vitro s containers subsidiary located in Guadalajara, are now listed among the Great Places to Work in Mexico. Vidrio Plano de México LAN was also recognized as one of the 30 great places to work among the largest companies in Latin America by the same Institute. This distinction is awarded to Latin American companies which, besides ranking in the national lists, have increased the trust of their employees in the previous five years. The quality of the labor conditions at Vitro has been further acknowledged by the international firm Top Companies, which also issues a Mexican ranking on Super Companies in the Expansion magazine. The Company has been part of this exclusive group during the last 4 consecutive years. Vitro 3Q 14 Page 9

10 Investor Relations and Media Contacts: INVESTORS Jesus N. Medina Vitro S.A.B. de C.V. + (52) jnmedina@vitro.com U.S. AGENCY Susan Borinelli MBS Breakstone Group (646) / susan.borinelli@mbsvalue.com MEDIA Ricardo Flores Vitro, S.A.B. de C.V. + (52) rfloresd@vitro.com About Vitro Vitro, S.A.B. de C.V. (BMV: VITROA) is the leading glass manufacturer in Mexico and one of the world s major companies in its industry, backed by more than 100 years of experience. Founded in 1909 in Monterrey, Mexico, the Company has subsidiaries in the Americas, offering quality products and reliable services to meet the needs of two businesses: glass containers and flat glass. Companies of Vitro produce, process, distribute, and market a wide range of glass articles, which are part of the daily life of thousands of people. Vitro offers solutions for multiple markets, including food, beverage, wine, liquor, beer, cosmetic, and pharmaceutical, as well as architectural and automotive. The Company is also a supplier of raw material, machinery, and equipment for industrial use. As a socially responsible organization, Vitro works on several initiatives aligned to its Sustainability Model, aiming to create a positive influence in the economic, social, and environmental aspects relevant to its stakeholders, in a responsible corporate management framework. For more information, visit: Disclaimer This announcement contains historical information, certain management s expectations, estimates and other forward-looking information regarding Vitro, S.A.B. de C.V. and its Subsidiaries (collectively the Company ). While the Company believes that these management s expectations and forward looking statements are based on reasonable assumptions, all such statements reflect the current views of the Company with respect to future events and are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated in this report. Many factors could cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental and business conditions worldwide and in such markets in which the Company does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the growth or reduction of the markets and segments where the Company sells its products, changes in raw material prices, changes in energy prices, particularly gas, changes in the business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. The Company does not assume any obligation, to and will not update these forward-looking statements. Use of Non-GAAP Financial Measures A body of generally accepted accounting principles is commonly referred to as GAAP. A non-gaap financial measure is generally defined as one that purports to measure historical or future financial performance, financial position or cash flows but excludes or includes amounts that would not be so adjusted in the most comparable GAAP measure. We disclose in this report certain non-gaap financial measures, including EBITDA. EBITDA: earnings before other income and expenses, interest, taxes plus depreciation and amortization, and provision for employee retirement obligations with impact in the operating profit. In managing our business we rely on EBITDA as a means of assessing our operating performance and a portion of our management s compensation and employee profit sharing plan is linked to EBITDA performance. We believe that EBITDA can be useful to facilitate comparisons of operating performance between periods and with other companies because it excludes the effect of (i) depreciation and amortization, which represents a non-cash charge to earnings, (ii) certain financing costs, which are significantly affected by external factors, including interest rates, foreign currency exchange rates and inflation rates, which have little or no bearing on our operating performance, (iii) income tax and statutory employee profit sharing, which is similar to a tax on income and (iv) other expenses or income not related to the operation of the business. EBITDA is also a useful basis of comparing our results with those of other companies because it presents operating results on a basis unaffected by capital structure and taxes. We also calculate EBITDA in connection with covenants related to some of our financings. We believe that EBITDA enhances the understanding of our financial performance and our ability to satisfy principal and interest obligations with respect to our indebtedness as well as to fund capital expenditures and working capital requirements. EBITDA is not a measure of financial performance under IFRS. EBITDA should not be considered as an alternate measure of net income or operating income, as determined on a consolidated basis using amounts derived from statements of operations prepared in accordance with IFRS, as an indicator of operating performance or as cash flows from operating activity or as a measure of liquidity. EBITDA has material limitations that impair its value as a measure of a company s overall profitability since it does not address certain ongoing costs of our business that could significantly affect profitability such as financial expenses and income taxes, depreciation, pension plan reserves or capital expenditures and associated charges. **To fully comply with the Mexican Stock Exchange Regulation, art Section VIII, the Company informs that currently the following Brokerage or Credit Institutions provide analysis coverage to our securities: GBM Grupo Bursátil Mexicano, S.A. de C.V., Casa de Bolsa. Vitro 3Q 14 Page 10

11 CONSOLIDATED VITRO, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIODS, (MILLION) Third Quarter 9M INCOME STATEMENT Nominal Pesos Nominal Dollars Nominal Pesos Nominal Dollars % Var % Var % Var % Var. Consolidated Net Sales 5,731 5, ,021 16, ,295 1, Cost of Sales 4,085 3, ,245 11, Gross Income 1,646 1,767 (6.9) (7.8) 4,776 5,129 (6.9) (9.5) SG&A Expenses (10.3) (11.1) 2,327 2,703 (13.9) (16.2) Operating Income (3.8) (4.8) 2,449 2, (2.0) Other Expenses (Income), net (21) -- 3 (2) -- Operating income after other expenses (income), net (6.4) (7.4) 2,416 2,446 (1.2) (4.3) Share in earnings (loss) of unconsolidated associated companies 0 2 (84.0) 0 0 (83.4) Interest Expense ,014 1,040 (2.5) (5.1) Interest (Income) (31) (155) (79.9) (2) (12) (80.3) (153) (186) (17.4) (12) (14) (17.8) Other Financial Expenses, net (4.7) (6.9) Foreign Exchange Loss (Income) Net financial cost ,580 1, Income (loss) before Tax (19) (1) ,181 (27.7) (31.7) Income Tax (51) (4) (35.3) (37.5) Net income (loss) (91.3) 3 29 (91.0) (23.7) (28.6) Net Income (loss) attributable to controlling interest (1) (99.6) (29.0) (33.4) Net Income (loss) attributable to noncontrolling interest 33 (27) -- 2 (2) (2) ,252.1 Vitro 3Q 14 Page 11

12 CONSOLIDATED VITRO, S.A.B. DE C.V. AND SUBSIDIARIES CONSOLIDATED FINANCIAL POSITION As of September Nominal P esos Nominal Dollars FINANCIAL POSITION 3Q'14 3Q'13 % Var. 3Q'14 3Q'13 % Var. FINANCIAL INDICATORS (1) 3Q'14 3Q'13 Cash & Cash Equivalents 3,169 2, Debt/EBITDA (LTM, times) Trade Receivables 3,225 3, EBITDA/ Interest. Exp. (LTM, times) Inventories 3,333 3,511 (5.1) (6.9) Debt / (Debt + Equity) (times) Other Current Assets 1,156 1, Debt/Equity (times) Assets held for sale (84.2) 3 17 (84.5) Total Current Assets 10,919 10, Total Liab./Stockh. Equity (times) Curr. Assets/Curr. Liab. (times) Property, Plant & Equipment 14,123 14,333 (1.5) 1,054 1,090 (3.3) Sales (LTM)/Assets (times) Deferred Assets 7,749 8,057 (3.8) (5.7) EPS (Ps$) (YTD)* Other Long-Term Assets (31.6) (32.9) Investment in Affiliates (2) 939 1,016 (7.6) (9.4) Total Non Current Assets 23,490 24,398 (3.7) 1,752 1,854 (5.5) Total Assets 34,409 34,799 (1.1) 2,564 2,644 (3.0) * Based on w eighted average outstanding shares year to date Short-Term & Current Debt 4,015 2, OTHER INFORMATION 3Q'14 3Q'13 Trade Payables 1,361 1, # Shares Issued (thousands) 483, ,571 Other Current Liabilities 2,990 4,883 (38.8) (40.0) # Weighted Average Shares Outstanding (thousands) 458, ,132 Total Current Liabilities 8,366 8,668 (3.5) (5.3) # Employees 16,278 15,730 Long-Term Debt 12,649 13,981 (9.5) 942 1,061 (11.3) Employee benefits 780 1,354 (42.4) (43.5) Other LT Liabilities 3,944 4,225 (6.6) (8.4) Total Non Current Liabilities 17,374 19,559 (11.2) 1,293 1,485 (12.9) Total Liabilities 25,740 28,228 (8.8) 1,916 2,143 (10.6) Controlling interest 7,416 5, Noncontroliing interest 1,253 1,292 (3.0) (4.9) Total Shareholders Equity 8,669 6, (1) Financial ratios are calculated using figures in pesos. (2) Investment in Affiliates includes 49.7% participation in Comegua under the equity method. Vitro 3Q 14 Page 12

13 VITRO, S.A.B. DE C.V. AND SUBSIDIARIES SEGMENTED INFORMATION FOR THE FOLLOWING PERIODS, (MILLION) Third Quarter 9M Nominal Pesos Nominal Dollars Nominal Pesos Nominal Dollars % % % % GLASS CONTAINERS Net Sales 4,080 3, % % 11,885 11, % % Intercompany Sales % % % % Net Sales to third parties 4,075 3, % % 11,868 11, % % EBIT (4) % % 2,260 2, % % Margin (1) 22.4% 19.2% 22.4% 19.2% 19.0% 18.7% 19.0% 18.8% EBITDA (4) 1,241 1, % % 3,230 3, % % Margin (1) 30.4% 28.3% 30.4% 28.3% 27.2% 28.0% 27.1% 28.0% Glass containers volumes (MM Pieces) Domestic 1, % 3,046 2, % Exports % 1,138 1, % Total:Dom.+Exp. 1,434 1, % 4,184 4, % Soda Ash (Thousand Tons) % % FLAT GLASS Net Sales 1,616 1, % % 5,072 5, % % Intercompany Sales 4 0 ###### 0 (0) ###### 1 (0) -- Net Sales to third parties 1,612 1, % % 5,065 5, % % EBIT (4) (2) (0) % % Margin (1) -0.1% 9.6% -0.2% 9.6% 4.8% 3.9% 4.8% 3.8% EBITDA (4) % % % % Margin (1) 6.2% 15.8% 6.1% 15.7% 11.0% 10.3% 11.0% 10.3% Flat Glass Volumes (Thousand m2r) (2) Const + Auto 26,843 35, % 88, , % CONSOLIDATED (3) Net Sales 5,731 5, % % 17,021 16, % 1,295 1, % Intercompany Sales Net Sales to third parties 5,731 5, % % 17,021 16, % 1,295 1, % EBIT (4) % % 2,449 2, % % Margin (1) 15.6% 16.6% 15.5% 16.5% 14.4% 14.8% 14.4% 14.8% EBITDA (4) 1,334 1, % % 3,770 3, % % Margin (1) 23.3% 24.8% 23.2% 24.8% 22.2% 23.3% 22.1% 23.3% (1) EBIT and EBITDA Margins consider Consolidated Net Sales. (2) m2r = Reduced Squared Meters (3) Includes corporate companies and other's sales and EBIT. (4) EBIT and EBITDA are presented before other expenses (income) effect Vitro 3Q 14 Page 13