ALFA faced a year of challenges in 2014, but also of opportunities to continue advancing in our business strategy and our social responsibility initiatives. We completed acquisitions that expanded the horizon of our markets and we started up projects to expand our production capacity, improve efficiency and add value to our products and services. We also had to contend with volatility in some of the industries where we participate, like petrochemicals, which limited our business performance.

Our revenues and EBITDA for 2014 grew 9% and 7%, respectively, largely because of a strong performance in our aluminum auto parts business and the contribution from Campofrio, a processed meats company with a solid presence in Europe, which results were consolidated into ALFA’s starting in the third quarter.

During the year, we invested U.S. $1,426 million in fixed assets and acquisitions. Among the most important of these investments was our purchase of a majority stake in Campofrio. We also signed an agreement to buy BASF’s expandable polystyrene business in the Americas.

In fulfilling our corporate social responsibilities, we continued our initiatives and programs in areas like employee health, safety and development programs, engagement with our communities, and improving our environmental performance.

Our support for employee advancement was embodied in the efforts of Sigma University, which in 2014 served more than 14,000 people through its 11 schools.

Regarding our engagement with the community, the Extracurricular Talent Center sponsored by ALFA Foundation, tripled its capacity, serving 560 students.

Finally, regarding the environment, our programs to cut down on waste, reduce CO2 emissions and optimize our energy and water consumption all made encouraging progress. We are particularly proud of the startup of our cogeneration plant in Veracruz, which not only supplies clean, efficient energy but reduces CO2 emissions as well.

For more than 40 years, ALFA has forged a tradition of being a socially responsible company as its founders originally conceived it. Today, we re-commit to working under this philosophy, that has always been the pillar of our company’s growth.

We invite you to read this report of the most important activities our company carried out in 2014, in the area of corporate social responsibility.

San Pedro Garza García, N.L., Mexico, March 17, 2015.

Armando Garza Sada
Chairman of the Board of Directors

Álvaro Fernández Garza