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CONTROLADORA MABE 2Q21 RESULTS

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| 1 | CONTROLADORA MABE 2Q21 RESULTS
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CONTROLADORA MABE

2Q21 RESULTS

DISCLAIMER

GENERAL INFORMATIONThe following material is submitted by way of general information regarding ControladoraMabe, S.A. de C.V., “Mabe”, as it stands to date. Said information is presented in asummarized fashion and is not intended to be comprehensive. Nor does it constitute arecommendation for potential investors. This presentation is strictly confidential and shallnot be divulged to any other person.

No representation or guarantee, either expressed or implied, is intentional, and itsexactness, precision or comprehensive information herein presented shall not beemphasized. This presentation may contain declarations that express the expectations ofmanagement regarding future events or results in lieu of historic events. These forward-looking declarations imply risk and uncertainty that may cause the real results to differmaterially from those forecast, and Mabe cannot ensure that said declarations will prove tobe correct. These risks and uncertainties include factors related to all the economies wherewe operate, which in turn may show volatility and may be adversely affected by factorspertaining to other countries, related to the business of retail sales, that by its very nature iscyclical and linked to the highly competitive industry of which Mabe is a part and in which itoperates.

COMMENTS ON FINANCIAL INFORMATIONThis presentation contains our unaudited financial information. EBITDA is not a measure offinancial performance under IFRS and should not be considered as an alternative to netincome or operating income as a measure of operating performance or to cash flows fromoperating activities as a measure of liquidity.

IFRS 16 became effective January 1st, 2019, this new standard affects the way leasing assetsand liabilities are reported in the Balance Sheet and Profit & Loss Statement.In the P&L leases expenses no longer be an operating expense and is recognized asdepreciation and interest expense separately, which has a positive impact on EBITDA andincrease in depreciation and financial costs.

All financial information, including its calculations and data, are deemed to be accurate, butaccuracy is not guaranteed, therefore, they are not guaranteed by Mabe or its affiliates andsubsidiaries. Past performance is not an indicator whatsoever of future results.

On October 23, 2020 the International Swaps and Derivatives Association (ISDA) published inits 2006 ISDA Definitions the revised definition of LIBOR, as well as a modification to thedefinition of other IBOR rates, and a new Protocol was issued.

The effective date of the Protocol is January 25, 2021. ISDA definition states that, in view of theeffective cessation of USD LIBOR in the United States, the substitute rate will be SOFR plus anadditional rate to offset the historical difference between LIBOR and SOFR.

On January 22, 2021, Mabe voluntarily adhered to ISDA 2020 IBOR Fallbacks Protocol, with theobjective that new transactions and/or those entered into prior to adhering be subject to theamended definition of LIBOR (or other IBORs), with respect to the counterparties also adhering tothe Protocol. Therefore, from that date onwards, all transactions conducted by Mabe will besubject to the new definitions as amended by the Supplement.

In order to mitigate the possible impact of the change in LIBOR rate, Mabe’s treasury is managingthe plan for transition from LIBOR to another reference rate and is in the process of defining thetransition to alternative reference rates, as well as significant assumptions and estimates forapplying the amendment.

INDUSTRY & MARKET DATACertain data is based on our estimates, which are derived from our review of internal surveys, aswell as independent sources.

TERMS AND CONDITIONS OF USEViewers or recipients of the information herein that do not agree with the term and conditions ofuse, should not utilize any information contained herein. Decisions based on informationcontained herein are the sole responsibility of the person viewing it. In exchange for utilizing theinformation you agree to indemnify and hold Mabe, its officers, directors, employees, affiliates,agents, licensors and suppliers harmless against any and all claims, losses, liability, costs andexpenses (including but not limited to attorneys' fees) arising from the use of the abovementioned information or from any decisions that the viewer makes based on such information.

These terms and conditions and this Site are governed by the federal laws of Mexico applicabletherein, excluding any conflict of laws which would lead to the application of any other laws. Youhereby irrevocably submitted to the federal courts located in Mexico City for any disputes ormatters arising from, connected with, or relating to this information or any related matters.

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HIGHLIGHTS

• Volume and sales in 2Q21 increased 62% and 66%respectively Vs. 2Q20, driven by strong performances in allour markets

• Significantly increased EBITDA of 91% 2Q21/2Q20

• Strong improvement in EBITDA margin of 11% in 2Q21 (146bps better than 2Q20)

• Reduced Net Debt by US$200 MM from US$598 MM toUS$398 MM

• Best ever covenant ratios in 2Q21: Net leverage - 0.90x& Net interest coverage - 10.89x

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34%

7%

27%

32%

Cooking Others

Laundry Refrigeration100

53%

2%

19%

26%

North America International

Latin America Mexico

TOTAL SALES

2Q21 BY SEGMENT

TOTAL SALES 2Q21

Figures in US$MM, unless otherwise noted

TOTAL SALES

2Q21 BY REGION

TOTAL NORTH AMERICA MEXICO LATIN AMERICA INTERNATIONAL

Sales Change vs 2Q20 66% 40% 94% 159% 29%

SALES BY SEGMENT TOTAL NORTH AMERICA MEXICO LATIN AMERICA INTERNATIONAL

Cooking 34% 37% 28% 31% 44%

Refrigeration 32% 29% 30% 44% 33%

Laundry 27% 32% 24% 17% 15%

Others 7% 2% 18% 8% 8%

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3,069 3,284 3,273

621

1,030

-

FY´18 FY´19 FY´20 2Q20 2Q21

11,176 11,393 11,390

2,159

3,487

FY´18 FY´19 FY´20 2Q20 2Q21

VOLUME AND SALES 2Q

Figures in US$MM, unless otherwise noted

VOLUME (UNITS) SALES

61.5% 65.8%

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258

296

353

60

114

8.4%

9.0%

10.8%

9.6%

11.0%

FY´18 FY´19 FY´20 2Q20 2Q21

EBITDA 2Q

For purposes of this slide, EBITDA does not consider IFRS16, which affects the way leasing assets and liabilities arereported in the Balance Sheet.

Figures in US$MM, unless otherwise noted | 6 |

EBITDA % Margin

90.9%

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RESULTS OVERVIEW 2Q

Figures in US$MM, unless otherwise noted

* Covenants do not consider IFRS16

CONCEPT 2Q21 2Q20 D VS 2020

Sales 1,030 621 66%

% SG&A 11.6% 12.9% (1%)

EBITDAR 121 66 83%

EBITDAR Margin 11.7% 10.6%

CapEx 28 24 16%

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FREE CASH FLOW 2Q21

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RESULTS OVERVIEW YTD

Figures in US$MM, unless otherwise noted

* Covenants do not consider IFRS16

CONCEPT YTD21 YTD20 D VS 2020

Sales 1,886 1,299 45%

% SG&A 11.9% 13.6% (2%)

EBITDAR 215 126 71%

EBITDAR Margin 11.4% 9.7%

CapEx 57 57 (0%)

Net Debt 398 598 (34%)

Net Leverage * 0.90x 2.05x

Net Interest Coverage * 10.89x 6.42x

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FREE CASH FLOW YTD21

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370

175

15 30 22

4 9 9

2

2021 2022 2023 2024 2026 2028398

467

373

514

598

637

478

241

181

313

203

290

290

247

2Q21

1Q21

4Q20

3Q20

2Q20

1Q20

4Q19

Net Debt Cash

DEBT PROFILE

DEBT Average life of debt: 6.6 years

Figures in US$MM, unless otherwise noted

41 1 1

Notes 2028 Private Placement Club Deal ST Debt LT Peru CAD Loan

Gross Debt

927

888

717

686

639

725

Net Debt Cash

648

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FINAL REMARKS

• We expect continued high-volume demand in the third quarter in most ofour markets. In the fourth quarter, demand will stabilize.

• During the second quarter and early third quarter, prices and promotionswere adjusted to offset inflation in materials and freight costs.

• Mabe continues on the process to increase the capacity of its plants to meetstrong customer demand.

• Ongoing focus on improving the company's financial profile

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Florencia de la FuenteCorporate Treasury & Investor Relations ManagerPhone: +52 55 1100 3730 E-mail: [email protected]

Laura AlvizoTreasury & Investor Relations Jr. ManagerPhone: +52 55 9178 8268E-mail: [email protected]

Av. Paseo de las Palmas 100,Lomas de Chapultepec I Sección,C.P. 11000, Ciudad de México, México.

CONTACT


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