1Q20 CORPORATE PRESENTATION 1 DISCLAIMER This presentation has - PowerPoint PPT Presentation

1Q20 CORPORATE PRESENTATION 1

DISCLAIMER This presentation has been prepared by Grupo KUO, S.A.B. de C..V. (“Kuo” or the “Company”) and has not been independently verified. You agree to keep the contents of this presentation strictly confidential. This presentation is highly confidential and contains proprietary and confidential information about KUO, its subsidiaries, its financial results and its operations. This presentation’s material is being presented solely for your information and may not be copied, reproduced or redistributed to any other person in any manner. At the request of KUO the recipient will promptly return all non-public material received from KUO (including this presentation) without retaining any copies thereof. No securities may be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. KUO does not intend to register any of its securities for offer or sale in the United States or elsewhere, or to conduct a public offering of securities in the United States or elsewhere. This presentation includes forward-looking statements. These statements relate to KUO's future prospects, developments and business strategies and are identified by the use of terms and phrases such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “will,” “goals,” “target,” “strategy” and similar terms and phrases, and may include references to assumptions. Forward-looking statements are based on KUO's current expectations and assumptions regarding its business, the economy and other future conditions. KUO's actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include those mentioned in the company’s filings with the Mexican Authorities and/or Regulators as well as the Offering Circular for the Company ´ s proposed offering of debt securities. No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives accept any responsibility whatsoever for any loss or damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice. Certain data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company makes no representations as to the accuracy or completeness of that data, and such data involves risks and uncertainties and is subject to change based on various factors. The use of registered trademarks, commercial trademarks and logos or photographic materials within this document are exclusively for illustrative purposes and are not meant to violate the rights of the creators and/or applicable intellectual property laws. This presentation does not constitute an offer or invitation to purchase or subscribe for any debt securities or other securities of the Company and neither any part of this presentation nor any information or statement contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any decision to purchase securities in any offering of securities of the Company should be made solely on the basis of the information contained in the Offering Circular which may be published or distributed in due course in connection with any offering of securities of the Company, if any. By participating in this presentation, you agree to be bound by the foregoing limitations. 2

KUO AT A GLANCE LTM (MXN) REVENUE EBITDA % of total % of total CONSUMER $43,421 Revenue PORK MEAT $5,319 EBITDA 51% 60% 12.2% EBITDA Margin BRANDED FOOD* 2.87x Net Debt/ EBITDA 53% Exports 28 Manufacturing Plants SYNTHETIC CHEMICAL 70 Countries RUBBER* 29% 33% +25,000 Employees POLYMERS REVENUE DISTRIBUTION 12% ASIA 2% OTHER 10% AUTOMOTIVE EUROPE TRANSMISSIONS 47% MEX 7% 20% 29% US & AFTERMARKET CANADA 3 *JV 50% / 50% Note: FY figures LTM 1Q20, expressed in millions of Mexican pesos in Combined Pro forma IFRS, considering the proportional consolidation method.

RECENT DEVELOPMENTS CONSUMER ACTIONS IMPACTS: COVID & OTHERS PORK MEAT ➢ Typified as a “essential activity” ➢ Focus on export channel ➢ Estimated Export Sales growth (China & Japan) ➢ Deployment of home delivery capabilities of ➢ Expected Higher prices and volume vs 2019 Maxicarne venues ➢ Increase shifts in Merida’s processing plant to ➢ Recent incident on new processing plant (30% absorb production loss installed capacity loss) ➢ ➢ Lower domestic prices Use local third parties processing facilities ➢ Continue with insurance process IMPACTS: COVID & OTHERS ACTIONS DEL FUERTE HERDEZ ➢ Typified as a “essential activity” ➢ Ensure supply chain/ logistics ➢ Strong demand on main categories in domestic market, ➢ Focus on production within higher turnover boosted by COVID outbreak products ➢ Strong Sales trend in March & April ➢ Home office of administrative staff ➢ Divestiture of Tuna business ➢ Resume of operations in Don Miguel facility ➢ Impact in food service channel in Fresherized Foods (avocado business) ➢ Temporary shutdown of Don Miguel facility 4

RECENT DEVELOPMENTS CHEMICAL IMPACTS: COVID & OTHERS ACTIONS ➢ Several applications typified as “essential activity” ➢ SYNTHETIC Increased demand for labels (food & beverages) ➢ New value-added applications under development and belts (hygienic) RUBBER ➢ Drop in oil prices pressures raw material prices ➢ New contract with sandal producer (Alpargatas) ➢ (butadiene -31%) Technical shutdowns of some facilities due to ➢ Shutdown of one facility in Spain given halt of operations contraction in tire segment ➢ of Clients within tire industry Manage contraction in butadiene price IMPACTS: COVID & OTHERS ACTIONS POLYMERS ➢ Several applications typified as “essential activities” ➢ Focus in development of new applications per ➢ Current COVID-19 contingency relieves pressure on COVID-19 ➢ campaign against single use products Increased demand for single use applications in ➢ New value-added applications under development North America region ➢ Shutdown of some US client's operations ➢ Manage contraction in styrene price ➢ Drop in oil prices pressures raw material prices (styrene -11%) 5

RECENT DEVELOPMENTS AUTOMOTIVE TRANSMISSIONS IMPACTS: COVID & OTHERS ACTIONS ➢ Shutdown of US facility for several weeks (March – May) State of Michigan’s support on Wixom facility ➢ ➢ Delay of OEMs sales per temporary operations ➢ Resume operations on June, with expected shutdowns (March – May) gradual volume normalization starting in July ➢ GM has the commitment with customers to supply 2020 ➢ Resume of GM, Ford & Fiat Chrysler operations Corvette model ➢ Higher inventories AFTERMARKET IMPACTS: COVID & OTHERS ACTIONS ➢ Typified as “essential activity” ➢ Enhance operations & inventories ➢ Technical shutdowns during April & May ➢ Resume operations in June, with expected volume normalization in following months 6

RECENT DEVELOPMENTS FINANCIAL ACTIONS ➢ Strict SG&A Control ➢ Canceled all salary increases and hiring freeze ➢ CAPEX to minimum maintenance level ➢ No dividend for 2020 ➢ Divestiture of Non-Strategic Assets (Tuna Business) ➢ US$80 MM withdrawal of committed credit facilities ➢ Available committed credit lines US$190 MM ➢ Increased cashflows/ dividends from JV’s ➢ Working Capital optimization ➢ No significant debt maturities until 2024 ➢ Obtained financial covenant waiver for credit facilities for 2020 (Gross leverage at 5.0x) 7

ANNEXES FINANCIAL HIGHLIGHTS 1Q20 8

FINANCIAL HIGHLIGHTS 1Q20 (MILLION PESOS) REVENUE EBITDA 7.4% 11.9% 1,105 13.00% 11,209 1,100 1,029 12.00% 1,000 10,016 11.00% 900 10.00% 10.3% 800 9.9% 9.00% 700 8.00% 600 7.00% 9.9% 500 6.00% 1Q19 1Q20 1Q19 1Q20 56.2% EXPORTS 13.3% MGN 5,752 CONSUMER 1Q20 1Q20 764 +18.4% +48.2% 4,856 1Q19 516 1Q19 11.0% MGN CHEMICAL 3,134 1Q20 2019 345 -7.3% -2.9% 3,382 1Q19 2018 355 2.8% MGN AUTOMOTIVE 2,274 1Q20 64 2019 -62.9% +30.6% 1,741 1Q19 172 2018 9 Note: Figures are expressed in millions of Mexican pesos in Combined Pro forma IFRS, considering the proportional consolidation method.

CONSUMER 1Q20 (MILLION PESOS) REVENUES +18.4% 5,752 4,856 9.9% 50% OPERATING OF CONSOLIDATED MARGIN SALES 1Q19 1Q20 EBITDA +48.2% 764 516 13.3% 65% OF CONSOLIDATED EBITDA MARGIN EBITDA 1Q19 1Q20 10 Note: Figures are expressed in millions of Mexican pesos in Combined Pro forma IFRS, considering the proportional consolidation method.