Mexichem Reports 2016 Third Quarter and Nine Month Results

Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“the Company” or “Mexichem”)
today announced its unaudited results for 3Q16. The figures have been
prepared in accordance with International Financial Reporting Standards
(“NIIF” or “IFRS”), IAS 34, interim financial reporting though the
accounting policies and methods are consistent with the annual
consolidated financial statements as of December 31^st, 2015,
having US dollars as the functional and reporting currency. All
comparisons are made against the same period of the prior year, unless
specified to the contrary.

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Given that Mexichem’s reported earnings results (including the impact of
the incident at PMV’s VCM plant) differ substantially from its reported
operating results (without the impact), for clarification purposes this
report contains reported EBIT, EBITDA and net income including the
one-time net benefit related to PMV´s VCM plant, as well as *Adjusted
EBIT, EBITDA and net income which exclude that effect. Additional
details are contained on page 9.

.Third Quarter 2016 Financial and Operating Highlights

• Reported EBITDA including $224 million in one-time net benefit
  related to PMV´s VCM plant, was $466 million. Adjusted EBITDA which
  excludes this effect was $242 million
• Consolidated Adjusted EBITDA margin expanded over 111 bps to 17.3%,
  reflecting higher margins across all key business units
• Reported net majority income was $155 million; adjusted net
  majority income increased 25% to $68 million,
• Reported revenue and EBITDA were $1.4 billion and $466 million
  respectively, and adjusted on a constant currency basis were $1.42
  billion and $470 million, respectively. See more p 14

Establishes Canadian Presence through Acquisition of Gravenhurst
Plastics

Company on Track to Reach Guidance of Approximately $900 Million in
Adj EBITDA for 2016

CONSOLIDATED SELECTED FINANCIAL RESULTS
			Third Quarter									January - September
Consolidated (mm US$)			2016			2015			%Var.			2016			2015			% Var.
Net Sales			1,400			1,446			-3%			4,090			4,408			-7%
Operating Income			374			138			172%			363			401			-10%
EBITDA			466			234			99%			637			698			-9%
EBITDA margin			33.3%			16.2%			1,709			15.6%			15.8%			- 26
Net Majority Income			155			54			187%			173			137			26%
Operating cash flow before Capex			170			217			-22%			308			417			-26%
Total CAPEX (organic & JV)			-87			-216			-60%			-320			-467			-32%
Free Cash Flow*			70			-14			N/A			-53			-99			-46%
Adjusted Operating Income*			150			138			9%			424			401			6%
Adjusted EBITDA*			242			234			3%			699			698			0%
Adjusted EBITDA Margin*			17.3%			16.2%			111			17.1%			15.8%			125
Adjusted Net Maj Income*			68			54			25%			204			137			49%

Nine Month 2016 Financial and Operating Highlights

• Reported EBITDA including $224 million in one-time benefit related
  to PMV´s VCM plant was $637 million; Adjusted EBITDA was $699 million
• Consolidated Adjusted EBITDA margin expanded over 125 bps to 17.1%,
  reflecting higher margins across key business units
• Reported net majority income was $173 million, and adjusted net
  majority income increased by 49% to $204 million y-o-y.
• LTM ROE and ROIC were 3.7% and 5.1% while adjusted LTM ROE and ROIC
  was 5.1% and 5.7% respectively.
• Reported sales and EBITDA were $4.1 billion, and $637 million
  respectively, and adjusted on a constant currency basis were $4.3
  million and $746 million, respectively. See more p 14.

MANAGEMENT COMMENTARY

Mexichem continued to perform well in the third quarter, demonstrating
the ability to expand EBITDA margins and profitability levels within a
period of challenging market conditions. The accomplishments of the
third quarter and first nine months of this year underscore the strength
of our strategic initiatives to expand Mexichem’s portfolio of specialty
products, diversify our end-markets and geographic footprint, and
develop profitable cross-sell opportunities, all with a view toward
increasing companywide returns.

Results by Business Group were in line with our expectations and
reflected the resilience and stability that has characterized Mexichem
throughout 2016. Each of our key operating segments posted improved
EBITDA margin performance. Resins, Compounds and Derivatives, which
accounted for 97% of our Vinyl unit’s sales, benefited from higher
volumes this quarter particularly in Europe. Successful end market
diversification in our Fluor Group and higher pricing for certain
upstream products enabled us to expand margins despite volume declines.
In Fluent, a more favorable product mix resulted in higher margins,
overcoming a sales decline that was primarily due to currency
fluctuations.

In sum, Mexichem’s third quarter results put us on track to reach our
full year EBITDA guidance of approximately $900 million, an important
achievement given the difficult industry conditions we faced, the loss
of VCM and ethylene production at PMV and the effect of the U.S. dollar
appreciation, which significantly reduced our reported revenues and
EBITDA in the first nine months of this year. Additionally, our
financial metrics and ratios continue to improve. Capital expenditures
have declined substantially. Our equity contribution in our Texas- based
ethylene cracker at the end of 3Q16 was 87%. Our free cash flow almost
doubled in the third quarter and will continue to increase; and our net
debt/adjusted EBITDA improved to 1.8x.

Today, we announced an acquisition of Gravenhurst Plastics Ltd. (GPL), a
privately- held Canadian plastic pipe manufacturer company based in
Gravenhurst, Ontario (outside Toronto) with a secondary location in
Temiskaming. This transaction is emblematic of our strategy to expand
our portfolio of value-added specialty products for the datacom industry
and to enter new markets through strategic initiatives.

Based on our current visibility, we believe that Mexichem is positioned
for significant revenue growth in 2017. The key contributor will be our
ethylene cracker, which is scheduled to come on line in the first
quarter and to continue to ramp throughout the year. Other organic
growth initiatives include expanding our compounds business, moving
forward with pilot programs in Fluor, creating sales synergies amongst
our business units and innovating and expanding our product portfolios.
Additionally, with the major capital expenditure program behind us, we
will consider bolt-on acquisitions, similar to the one announced today
that will serve as a platform for Mexichem products in new geographies
and with new customers and end markets. The contribution from revenue
growth, as well as favorable product mix and ongoing operating
efficiencies are expected to result in strong EBITDA performance and
higher returns in 2017.

Clarifications

In the fourth quarter of 2015 the Company completed a restructuring
process in its Fluor Business Group resulting in a total of $49.9
million being reported as “discontinued operations” in full year 2015
results, in accordance with the IFRS regulations. Year-on-year figures
in this report are not comparable given that results reported in the
1st, 2nd, and 3rd quarters of 2015 include the operations that were
discontinued in 4Q15; Appendix I attached to this report contains
comparable figures for each quarter of 2016 vs 2015.

During the first nine months of 2016 we performed an analysis which has
led us to present the elimination of investment in subsidiaries under
the heading “Other Asset” by Business Group instead of “Consolidated
Eliminations”. The comparative information by segment following this
reclassification is included in Appendix II.

REVENUES

Third quarter 2016 reported revenues were $1.4 billion, $46 million or
3% below last year’s levels. Approximately one-half of the decline or
$24 million was due to the appreciation of the U.S. dollar against most
of our other operating currencies The remainder was due to the net
effect of lower sales volumes in Fluor and weaker U.S. demand for
Fluent’s oil and gas pressure pipes, partially offset by the slightly
higher revenues in our Vinyl Group mainly in Europe, which experienced
strong and consistent demand.

On a constant currency basis, total sales would have decreased 2%
year-on-year.

Revenues for 9M16 were $4 billion, or 7% below 2015 levels. Foreign
currency translations accounted for 60.4% of the decline. On a constant
currency basis, total sales would have decreased 3% year-on-year.

The United States represented 17% of total sales for the first nine
months of 2016, Brazil accounted for 6%, and the UK and Germany
represented 8% and 13%, respectively.

EBITDA AND ADJUSTED EBITDA

Reported EBITDA for 3Q16 was $466 million inclusive of PMV’s one-time
benefit of $224 million, compared to $234 million in 3Q15, and Adjusted
EBITDA for the quarter was $242 million, an increase of 3% y-o-y,
primarily reflecting the strong performance in our Resins, Compounds and
Derivatives business within our Vinyl Business Group and the absence of
the hedging strategy loss that impacted last year’s third quarter.

These positive factors were offset the strength of the U.S. dollar
globally. On a constant currency basis Adjusted EBITDA would have
increased 5% to $247 million. Adjusted EBITDA margin expanded by 111 bps
to 17.3% from 16.2%, benefitting from a combination of the previously
mentioned factors, and lower input costs for certain products in our
Vinyl Group and a more favorable product mix in Fluent.

For the first nine months of 2016, Adjusted EBITDA was $699 million,
flat with the $698 million reported in 9M15, despite a $48 million
negative foreign exchange impact in the 2016 period. On a constant
currency basis, nine month 2016 Adjusted EBITDA would have increased 7%
to $746 million.

OPERATING INCOME AND ADJUSTED OPERATING INCOME

Including the one-time benefit related to PMV´s VCM plant, the Company
reported operating income for the third quarter of $374 million.
Adjusted operating income was $150 million, 9% higher than in 3Q15, and
adjusted operating margin expanded 123 bps to 10.7%. These results were
due to the above-mentioned factors. See additional details on page 9.

FINANCIAL COSTS

In 3Q16, financial costs decreased 9% to $50 million from $55 million in
3Q15 which included $14 million in losses related to a Euro-denominated
intercompany loan, which the company did not have in 3Q16 as the
position was hedged in 4Q15. The 27% decline in nine month 2016
financial costs reflected this impact as well as lower FX losses.

TAXES

Cash tax in 3Q16 was 21% lower compared to 3Q15 mainly due to a 10%
reduction in fluorspar volume lowered the mining tax.

Reported deferred taxes increased $73 million mainly as a consequence of
the recognition of the $224 million account receivable (revenue of $252
million net of $28 million in expenses for the 3Q16) related to the
insurance claim associated with the PMV incident.

The Company’s reported effective tax rates for the third quarter and
first nine months of 2016 were 29% and 35%, respectively; adjusted for
the PMV´s one-time benefit the effective tax rates were 30% and 31%,
respectively.

MAJORITY INCOME (LOSS)

In 3Q16, the Company reported net majority income of $155 million
compared to a profit of $54 million in 3Q15, while adjusted net majority
income was $68 million, an increase of 25%. For the first nine months of
2016, the Company reported net majority income of $173 million inclusive
of the related PMV one-time benefit; adjusted net majority income was
$204 million or an increase of 49% compared to $137 million in 9M15.

OPERATING CASH FLOW HIGHLIGHTS –
			Third Quarter									January - September
			2016			2015			%Var.			2016			2015			% Var.
EBITDA			466			234			99%			637			698			-9%
One time non-cash Items			-220			0						25			0
Cash Tax			-36			-46			-21%			-128			-128			0%
Net Interest			-43			-45			-6%			-125			-134			-6%
Bank Commissions			-3			-4			-12%			-9			-13			-34%
Monetary position and Exchange loss			-4			-28			-87%			-18			-47			-61%
Change in Trade Working Capital			10			106			-91%			-74			41			N/A
Operating cash flow before Capex			170			217			-22%			308			417			-26%
CAPEX (organic)			-50			-72			-31%			-150			-180			-17%
CAPEX (Total JV)			-70			-272			-74%			-299			-526			-43%
CAPEX JV (OXY SHARE)			32			128			-75%			129			240			-46%
NET CAPEX JV			-37			-144			-74%			-170			-286			-41%
Total CAPEX (organic & JV)			-87			-216			-60%			-320			-467			-32%
Cash Flow			84			1			7354%			-11			-50			-78%
Dividends			-14			-15			-6%			-42			-49			-14%
Free Cash Flow			70			-14			N/A			-53			-99			-46%

• The decline in operating cash flow before capital expenditures was
  mainly due to working capital management. In 3Q15, Mexichem reduced
  its working capital needs by $106 million compared to 3Q14, and in the
  3Q16 working capital needs were reduced by an additional $10 million
  from 3Q15 levels, demonstrating Mexichem’s continued ability to
  operate with significantly reduced working capital requirements. The
  increase in working capital requirements in the first nine months of
  this year compared to the similar period last year reflects the
  seasonality of our business, particularly relating to Fluent’s
  USA/Canada and European operations, where working capital requirements
  are higher in the first half of the year and decline in the second
  half.

Capital expenditures in 3Q16 decreased 60% to $87 million, $32 million
of which was invested in the ethylene cracker, $6 million as carry over
in PMV, and $50 million allocated to organic projects.

As of September 30, 2016, Mexichem’s equity investment in the ethylene
cracker reached $657 million. This amount represents 87% of the total
equity investment that Mexichem contracted for with OxyChem to gain a
50% stake in the joint venture.

NET WORKING CAPITAL

2016 Variation

2015 Variation

Sep-16

dec-15

D ($)

Sep-15

dec-14

D ($)

Net Working Capital

319

246

-74

526

566

41

The Net Working Capital balance as of September 30, 2016 when compared
to the same period last year reflected a $207 million decline in working
capital requirements.

FINANCIAL DEBT
			Last Twelve Months
			Sep 2016			Dec 2015
Net Debt USD			1,664			1,703
Net Debt/EBITDA 12 M			2.0x			1.9x
Net Debt/Adj EBITDA 12 M			1.8x			1.9x
Interest Coverage			4.2x			4.3x
Adj Interest Coverage			4.5x			4.3x
Outstanding Shares			2,100,000,000			2,100,000,000

Total financial debt as of September 30, 2016 was $2.3 billion plus $1.8
million in letters of credit with maturities of more than 180 days,
while cash and cash equivalents totaled $651 million, resulting in net
financial debt of $1.66 billion.

The Net Debt / EBITDA ratio was 2.0x at September 30, 2016, while the
Interest Coverage was 4.2x. The Net Debt /Adjusted EBITDA ratio was 1.8x
and Adjusted Interest Coverage was 4.5x. Adjusted EBITDA in this case
excludes the on-time charge accrued in 2Q16 and the one-time benefit net
of expenses accrued in 3Q16.

CONSOLIDATED BALANCE SHEET
			USD in thousands
Balance Sheet			Sep 2016			Dec 2015
Total assets			9,081,770			8,669,676
Cash and temporary investments			651,027			653,274
Receivables			963,233			798,779
Inventories			648,302			647,984
Others current assets			384,732			151,816
Long term assets			6,434,476			6,417,823
Total liabilities			5,070,110			4,990,895
Current portion of long-term debt			64,328			43,653
Suppliers			1,292,090			1,201,021
Other current liabilities			576,014			573,887
Long-term debt			2,249,154			2,291,422
Other long-term liabilities			888,524			880,912
Consolidated shareholders' equity			4,011,660			3,678,781
Minority shareholders' equity			888,819			776,419
Majority shareholders' equity			3,122,841			2,902,362
Total liabilities & shareholders' equity			9,081,770			8,669,676

Contingent Asset

On April 20th, 2016, an explosion occurred in Pajaritos, where two out
of three of PMV’s facilities are located; these two facilities are the
VCM and Ethylene plants. There was no damage to the chlorine-caustic
soda plant, which is located at another site. The ethylene plant is
under a mechanical integrity evaluation, but it appears that no damage
has occurred. The VCM plant (Clorados III) is the one that sustained
most of the damage, the major economic impact of which was the write-off
of the asset and the shutdown of that plant.

Mexichem’s assets including those in PMV are adequately insured at
today’s replacement value, while the related non-cash charge was
calculated at book value. The Company’s insurance coverage includes: i)
environmental responsibility, ii) damage to property, iii) business
interruption, iv) liability for damage to third parties, and v)
liability of directors and officers.

During the third quarter PMV gathered sufficient information to decide
to recognize the account receivable related to insurance coverage of
$252 million, therefore PMV recognized $252 million as other income net
of $28 million of other expenses totaling $224 million, related to
property damage, third party expenses, and expenses incurred under
directors’ and officers’ coverage. PMV and Resins, Compounds and
Derivatives recognized income of $14 million for business interruption
that offset fixed costs that were not absorbed.

PMV has presented its claims to its insurance companies.

PMV together with its shareholders, Mexichem & Pemex, are evaluating
several strategic options for the business in the future and depending
on the decisions then taken, PMV will evaluate the impacts on the rest
of its assets in Pajaritos Complex, reason why the Company adopted a
conservative policy with respect to the dollar amount recognized,
reflecting the stated cash value (net book value) of the plant as of
December 31st 2015 and the business interruption that was accrued as a
recovery of fixed costs, even though the insurance policies covers the
current replacement value of the plant and in the case of business
interruption insurance, the fixed cost plus margin. When the business
plan is finalized the exact dollar amount of the account receivable
could change.

Contingent Liability

As a consequence of the VCM Plant (Clorados III) incident described in
the contingent asset disclosure, PMV is performing an environmental
assessment to determine if any pollutants were deposited in areas in or
surrounding the facility. Also PMV could be responsible for third party
injuries, if any. Based on the information the Company has to date,
there is no evidence that there are additional relevant liabilities.

As mention previously, depending on the decision taken by PMV and its
shareholders, once the business future is decided, PMV will evaluate the
impacts in the rest of its assets in Pajaritos Complex.

CONSOLIDATED INCOME STATEMENT
USD mm				Third Quarter																January- September
INCOME STATEMENT				2016			PMV one time event			2016 w/o one time event			2015			%				2016			PMV one time event			2016 w/o one time event			2015	%
	Net sales			1,400,267			-			1,400,267			1,446,397			-3%				4,089,655			-			4,089,655			4,407,866	-7%
	Cost of sales			1,011,919			-			1,011,919			1,049,061			-4%				2,913,342			-			2,913,342			3,210,974	-9%
Gross Profit				388,348			-			388,348			397,336			-2%				1,176,313			-			1,176,313			1,196,892	-2%
	Operating expenses			14,228			(223,694)			237,922			259,771			-8%				813,651			61,831			751,820			796,001	-6%
Operating Income				374,120			223,694			150,426			137,565			9%				362,662			(61,831)			424,493			400,891	6%
	Financial cost			50,491			-			50,491			55,306			-9%				135,418			-			135,418			184,815	-27%
	Equity income of associated entities			131			-			131			(1,378)			N/A				(3,484)			-			(3,484)			- 873	299%
Income from continued operations before income tax				323,498			223,694			99,804			83,637			19%				230,728			(61,831)			292,559			216,949	35%
	Cash tax			35,906			-			35,906			45,508			-21%				127,717			-			127,717			128,263	0%
	Deferred tax			57,179			67,108			(9,929)			(16,261)			-39%				(47,337)			(5,647)			(41,690)			(47,861)	-13%
	Income Tax			93,085			67,108			25,977			29,247			-11%				80,380			(5,647)			86,027			80,402	7%
Income from continued operations				230,413			156,586			73,827			54,390			36%				150,348			(56,184)			206,532			136,547	51%
	Discontinued Operations			(6,573)			-			(6,573)			43			N/A				(5,391)			-			(5,391)			(18)	29850%
Net Consolidated Income				223,840			156,586			67,254			54,433			24%				144,957			(56,184)			201,141			136,529	47%
	Minority Interest			68,551			69,039			(488)			413			N/A				(28,126)			(24,772)			(3,354)			(853)	293%
Net Majority Income				155,289			87,547			67,742			54,020			25%				173,083			(31,413)			204,496			137,382	49%
EBITDA				465,881			223,694			242,187			234,041			3%				636,898			(61,831)			698,729			697,778	0%

OPERATING RESULTS BY BUSINESS GROUP

VINYL Business Group (37% and 31% of Mexichem’s sales (before
eliminations) and Adjusted EBITDA, respectively, in 3Q16)

			Third Quarter									January - September
Vinyl			2016			2015			%Var.			2016			2015			% Var.
Volume (K Tons)			633			647			-2%			1,894			1,886			0%
Total Sales*			537			535			0%			1,535			1,634			-6%
Operating Income**			263			42			532%			61			127			-52%
Adjusted Operating Income			40			42			-5%			123			127			-4%
EBITDA**			299			79			277%			171			239			-29%
Adjusted EBITDA			75			79			-5%			233			239			-3%

*Intercompany sales were $38 million and $33 million in 3Q16 and 3Q15,
respectively. 9M16 and 9M15 intercompany sales were $111 million and
$130 million, respectively.

**Includes Ingleside expenses of $6.9 million (YTD 2016) and $2.6
million (YTD 2015). Adjusted operating income and adjusted EBITDA
excludes one-time net benefit from PMV of $224 million in 3Q16.

			Third Quarter									January - September
Resins, Compounds & Derivatives			2016			2015			%Var.			2016			2015			% Var.
Volume (K Tons)			562			535			5%			1,653			1,578			5%
Total Sales*			523			513			2%			1,495			1,579			-5%
Operating Income**			40			32			23%			123			116			6%
EBITDA**			69			63			10%			211			206			3%

*Intercompany sales were $45 million and $46 million in 3Q16 and 3Q15,
respectively. Of these amounts $7 million and $13 million were invoiced
to PMV in 3Q16 and 3Q15. 9M16 and 9M15 intercompany sales were $136
million and $171 million, respectively; of these amounts $25 million and
$41 million were invoiced to PMV.

**Includes Ingleside expenses of $6.9 million (YTD 2016) and $2.6
million (YTD 2015).

			Third Quarter									January - September
PMV			2016			2015			%Var.			2016			2015			% Var.
Total Sales*			22			62			-65%			98			170			-43%
Operating Income			224			9			2314%			-62			12			N/A
Adjusted Operating Income**			0			9			N/A			0			12			N/A
EBITDA			230			16			1298%			-40			34			N/A
Adjusted EBITDA**			6			16			-63%			22			34			-35%

* Intercompany sales invoiced to Resins, Compounds and Derivatives were
$1 million and $27 million in 3Q16 and 3Q15, respectively. And, as of
September 2016 and 2015 were $32 million and $74 million, respectively.

** Adjusted operating income and adjusted EBITDA excludes a net benefit
of $224 million in 3Q16.

In 3Q16, the Vinyl Business Group reported a 2% decline in volumes, and
slightly above in sales.

Revenues increased by 0.3% to $537 million in 3Q16, slightly above the
$535 million reported in 3Q15, driven mainly by higher volumes and
slight recovery selling prices.

EBITDA for the Vinyl Business Group was positive $299 million due to the
one-time benefit of $224 million in PMV (revenue of $252 million net of
$28 million in expenses for the 3Q16). Adjusted EBITDA (excluding PMV’s
one-time benefits) decreased 5% to $75 million from $79 million.
Adjusted EBITDA margin was 14.0%.

In 3Q16, Resins, Compounds and Derivatives revenues increased 2%, driven
by volume which raised 5% YoY mainly due to higher resin demand which
included double digit growth in European volumes.

3Q16 EBITDA for Resins, Compounds and Derivatives was $69 million, 10%
higher 3Q15, reflecting a resilient operating performance, generating an
expansion in EBITDA margin of 98 bps to 12.3% from 13.3%.

In Resins, Compounds and Derivatives, 3Q16 operating income was $40
million (this included one-time benefit of $4.6 million from the
recognition of business interruption as a consequence of PMV incident)
higher than $32 million reported in 3Q15.

In 3Q16, PMV sales were $22 million, including $21 million from
chlorine-caustic soda operations.

In 3Q16, our Vinyl Group reported a one-time benefit of $224 million
related to the account receivable accrued of $252 million net of cash
expenses of $28 million, that resulted in reported operating income of
$224 million compared to operating income of $9 million in the similar
year-ago period. The one- time benefit is related to the incident which
resulted in a 2Q16 one-time charge of $286 million ($244 million was
non-cash charges related to the asset write off of Clorados III (VCM
plant), and the rest $42 million were related to other cash expenses).
The company adopted a conservative policy with respect to the amount of
the benefit, as PMV together with its shareholders, Mexichem & Pemex,
are in the process of evaluating several strategic options for the
future of this business, and depending on the decisions then taken, PMV
will evaluate the impacts on the rest of its assets in Pajaritos
Complex. When the business plan is finalized the exact dollar amount of
the account receivable could change.

Reported EBITDA in PMV was $230 million in 3Q16 while adjusted EBITDA
totaled $6 million, of which $3.4 million came from the chlorine-caustic
soda plant.

In the first nine months of 2016, the Vinyl Business Group’s sales were
flat YoY even PMV incident. Reported EBITDA was $171 million, while
adjusted EBITDA was $233 million implying an expansion of 51 bps to
15.2% margin.

FLUENT Business Group (53% and 48% of Mexichem’s sales (before
eliminations) and Adjusted EBITDA, respectively, in 3Q16)

			Third Quarter									January - September
Fluent			2016			2015			%Var.			2016			2015			% Var.
Sales			756			793			-5%			2,221			2,412			-8%
Fluent LatAm			276			279			-1%			789			906			-13%
Fluent Europe			324			342			-5%			988			1,013			-2%
Fluent US/AMEA			158			175			-10%			449			500			-10%
Intercompany Eliminations			(2)			(3)			-17%			(5)			(7)			-24%
Operating Income			78			81			-3%			210			202			4%
EBITDA			117			119			-2%			322			321			0%

In 3Q16, the Fluent Business Group’s reported sales declined by $37
million, of which $20 million or 54% represented the appreciation of the
U.S. dollar against almost all other global currencies. The remainder
was primarily due to lower demand in the U.S. for pressure pipes used in
the energy sector. Fluent US has taken actions to diversify its end
markets, and its more favorable product mix in the third quarter
resulted in higher EBITDA margins, despite lower sales.

3Q15			In million dollars			3Q16						Sub16			Sub16/2Q15
Revenues						Revenues			FX			Total			% Var Comp
279			Fluent LatAm			276			5			282			1%
342			Fluent Europe			324			13			337			-1%
175			Fluent US/AMEA			158			2			160			-9%
-3			Intercompany Eliminations			-2						- 2			-17%
793			Total			756			20			776			-2%

On a constant currency base total sales in the Fluent Business Group
would have been 2% lower or $776 million from $793 million.

Third quarter reported EBITDA was 2% lower y-o-y mainly due to an EBITDA
decline in Europe offset by positive operating performance in our LatAm
and US AMEA regions despite lower sales, benefitting from a more
favorable mix of higher margin datacom products, and lower raw material
costs. Fluent Business Group EBITDA margin expanded 43 bps to 15.4%.

On a constant currency basis, EBITDA increased 2% in 3Q16, implying an
EBITDA margin expansion of 60 bps to 15.6% from 15.0% in 3Q15.

In the first nine months of 2016 total reported revenues decreased 8%
while on a constant currency basis, revenues were almost flat. This is
mainly explained as follows:

9M15			In million dollars			9M16			9M16/ 9M15						Sub16			Sub16/9M15
Revenues						Revenues			% Var Comp			FX			Total			% Var Comp
906			Fluent LatAm			789			-13%			143			932			3%
1,013			Fluent Europe			988			-2%			30			1,019			1%
500			Fluent US/AMEA			449			-10%			9			458			-8%
-7			Intercompany Eliminations			-5			-24%			0			- 5			-24%
2,412			Total			2,221			-8%			183			2,404			0%

Reported EBITDA was flat compared to 9M15 despite a $191 million decline
in sales, mainly due to the increased profitability of all the three
regional operations, and EBITDA margin was 14.5%, an increase of 119 bps
year-on-year.

Exclusive of the US dollar exchange rate effect in Fluent Europe,
US/AMEA and LatAm, which totaled $47 million in 9M16, EBITDA would have
increased 15% in 2016, implying an EBITDA margin expansion of 204 bps to
15.3% compared to 13.3% in 9M15.

FLUOR BUSINESS GROUP (10% and 25% of Mexichem’s sales (before
eliminations) and Adjusted EBITDA, respectively, in 3Q16)

			Third Quarter									January - September
Fluor			2016			2015			%Var.			2016			2015			% Var.
Sales			145			151			-4%			449			493			-9%
Operating Income			44			44			1%			129			131			-2%
EBITDA			59			60			-1%			174			182			-5%

In 3Q16 the Fluor Group posted a 4% sales decline, reflecting a 10%
decrease in volumes, partially offset by slightly improved prices in our
upstream business. We continued to successfully diversify end markets,
with cement industry customers accounting for an average of 30% of our
metspar volumes in the 3Q16.

The Fluor Business Group’s reported EBITDA margin reached 40.8%, 120 bps
higher when compared to 39.6% in 3Q15, and despite lower sales, and
operating income was $44 million, an increase of 1%.

Nine month 2016 revenues were $449 million, down 9%, mainly due to
weaker pricing of fluorspar together with lower volumes in the first
nine months of the year. YTD 2016 EBITDA declined by 5%, or $8 million,
to $174 million; however, EBITDA margin expanded 171 bps to 38.7% from
36.9% in 9M15.

RECENT EVENTS

• Today, Mexichem announced that it acquired Gravenhurst Plastics Ltd.
  (GPL), a Canadian, privately held pipe and plastics manufacturer which
  in 2015 generated revenues of $15 million. Established in 1968, GPL
  supplies High Density Polyethylene (HDPE) conduit and inner duct for
  fiber optics, and building supply products to the Canadian market.
  Mexichem will consolidate GPL under its Dura-Line brand in the Fluent
  Business Group.

For all the news please visit the following webpage http://www.mexichem.com/news/

Conference Call Details:

Mexichem will host a conference call to discuss its 3Q16 results on
October 27, 2016 at 10:00 am Mexico City / 11:00 NY. To access the call,
please dial 001-855-817-7630 (Mexico), or 1-888-349-0106 (United States)
or 1-412-902-0131 (International). All callers should dial in a minimum
of 15 minutes prior to the start time and ask for the Mexichem
conference call.

The call will also be available through an audio only live webcasthttp://services.choruscall.com/links/mexichem161027.html
until January 27th, 2017http://services.choruscall.com/links/mexichem150722.html.
A replay of the call will be available approximately two hours after the
end of the call. The replay can be accessed via Mexichem’s website at www.mexichem.comwww.mexichem.com

RECONCILIATION SUMMARY BY BUSINESS GROUP

Third Quarter 2016 Financial and Operating Highlights

			Revenues									EBITDA									EBITDA Margin									Adjusted EBITDA									Adj. EBITDA Margin
In million dollars			3Q15			3Q16			%Var.			3Q15			3Q16			%Var.			3Q15			3Q16			Var.			3Q15			3Q16			%Var.			3Q15			3Q16			Var.
Vinyl			535			537			0%			79			299			277%			14.8%			55.7%			4,086			79			75			-5%			14.8%			14.0%			- 79
Fluent			793			756			-5%			119			117			-2%			15.0%			15.4%			43			119			117			-2%			15.0%			15.4%			43
Fluor			151			145			-4%			60			59			-1%			39.6%			40.8%			120			60			59			-1%			39.6%			40.8%			120
Energy			0			0						0			0															0			0
Eliminations / Holding			-33			-39			17%			-24			-10			-61%												-24			-10			-61%
Mexichem Consolidated			1,446			1,400			-3%			234			466			99%			16.2%			33.3%			106%			234			242			3%			16.2%			17.3%			111

3Q15			In million dollars			3Q16						Sub16			Sub16/3Q15
Revenues						Revenues			FX			Total			% Var Comp
535			Vinyl			537			2			539			1%
793			Fluent			756			20			776			-2%
1,329			Ethylene (Vinyl + Fluent)			1,294			22			1,316			-1%
151			Fluor			145			2			147			-3%
0			Energy			0			0			0
-33			Eliminations/ Holding			-39			0			- 39			17%
1,446			Total			1,400			24			1,424			-2%

3Q15			In million dollars			3Q16			3Q16						Sub16			Sub Adj 16			Sub16/2Q15			Sub Adj 16/2Q15
EBITDA						EBITDA			Adj. EBITDA			FX			Total			Total			% Var Comp			% Var Comp
79			Vinyl			299			75			0			299			76			277%			-5%
119			Fluent			117			117			4			121			121			2%			2%
198			Ethylene (Vinyl + Fluent)			416			192			4.5			420			197			112%			-1%
60			Fluor			59			59			0			59			59			-1%			-1%
0			Energy			0			0			0			0			0						0%
-24			Eliminations/ Holding			-10			-10			0			- 10			- 10			-61%			-61%
234			Total			466			242			4			470			247			101%			5%

First Nine Months 2016 Financial and Operating Highlights
			Revenues									EBITDA									EBITDA Margin									Adjusted EBITDA									Adj. EBITDA Margin
In million dollars			9M15			9M16			%Var.			9M15			9M16			%Var.			9M15			9M16			Var.			9M15			9M16			%Var.			9M15			9M16			Var.
Vinyl			1,634			1,535			-6%			239			171			-29%			14.6%			11.1%			- 352			239			233			-3%			14.6%			15.2%			51
Fluent			2,412			2,221			-8%			321			322			0%			13.3%			14.5%			119			321			322			0%			13.3%			14.5%			119
Fluor			493			449			-9%			182			174			-5%			36.9%			38.7%			171			182			174			-5%			36.9%			38.7%			171
Energy			0			1						0			1															0			1
Eliminations / Holding			-130			-117			-10%			-44			-30			-32%												-44			-30			-32%
Mexichem Consolidated			4,408			4,090			-7%			698			637			-9%			15.8%			15.6%			-26			698			699			0%			15.8%			17.1%			125

9M15			In million dollars			9M16						Sub16			Sub16/9M15
Revenues						Revenues			FX			Total			% Var Comp
1,634			Vinyl			1,535			6			1,541			-6%
2,412			Fluent			2,221			183			2,404			0%
4,046			Ethylene (Vinyl + Fluent)			3,756			188			3,945			-2%
493			Fluor			449			3			453			-8%
0			Energy			1			0			1
-130			Eliminations/ Holding			-117			0			- 117			-10%
4,408			Total			4,090			192			4,282			-3%

9M15			In million dollars			9M16			9M16						Sub16			Sub Adj 16			Sub16/9M15			Sub Adj 16/9M15
EBITDA						EBITDA			Adj. EBITDA			FX			Total			Total			% Var Comp			% Var Comp
239			Vinyl			171			233			1			172			233			-28%			-2%
321			Fluent			322			322			47			369			369			15%			15%
560			Ethylene (Vinyl + Fluent)			492			554			48			540			602			-3%			8%
182			Fluor			174			174			0			173			173			-5%			-5%
0			Energy			1			1						1			1
-44			Eliminations/ Holding			-30			-30						- 30			- 30			-32%			-32%
698			Total			637			699			48			685			746			-2%			7%

ABOUT MEXICHEM

Mexichem is one of the world’s largest chemical and petrochemical
companies. A leader in the manufacture and supply of plastic piping, it
contributes to global development by delivering an extended portfolio of
products to high growth sectors such as infrastructure, housing, datacom
and water cycle management. With operations in over 30 countries
worldwide and more than 18,000 employees, Mexichem has annual revenues
of US$5.7 billion and has been traded on the Mexican Stock Exchange for
more than 30 years.

Forward-looking Statements

In addition to historical information, this press release contains
"forward-looking" statements that reflect management's expectations for
the future. The words “anticipate,” “believe,” “expect,” “hope,” “have
the intention of,” “might,” “plan,” “should” and similar expressions
generally indicate comments on expectations. The final results may be
materially different from current expectations due to several factors,
which include, but are not limited to, global and local changes in
politics, the economy, business, competition, market and regulatory
factors, cyclical trends in relevant sectors; as well as other factors
that are highlighted under the title “Risk Factors” on the annual report
submitted by Mexichem to the Mexican National Banking and Securities
Commission (CNBV). The forward-looking statements included herein
represent Mexichem’s views as of the date of this press release.
Mexichem undertakes no obligation to revise or update publicly any
forward-looking statement for any reason unless required by law.”

Mexichem has implemented a Code of Ethics that rules its
relationships with its employees, clients, suppliers and general groups.
Mexichem’s Code of Ethics is available for consulting in the following
link: http://www.mexichem.com/Codigo_de_etica.html
Additionally, according to the terms contained in the Securities
Exchange Act No 42, Mexichem Audit Committee established a mechanism of
contact, which allows that any person that knows the unfulfilment of
operational and accounting records guidelines and lack of internal
controls of the Code of Ethics, from the Company itself or from the
subsidiaries that this controls, file a complaint which is anonymously
guaranteed. The whistleblower program is facilitated by a third party.
The telephone number in Mexico is 01-800-062-12-03. The website is http://www.ethic-line.com/mexichem
and contact e-mail is mexichem@ethic-line.com.
Mexichem’s Audit Committee will be notified of all complaints for
immediate investigation.

INDEPENDENT ANALYSTS

Currently, the following investment firms have analysts who cover
Mexichem:

1. Actinver

2. -Bank of America Merrill Lynch

3. -Banorte-Ixe

4. -Barclays

5. -BBVA Bancomer

6. -BTG Pactual

7. -Citigroup

8. -Credit Suisse

9. -GBM-Grupo Bursátil Mexicano

10. -Grupo Santander

11. -HSBC

12. -Intercam

13. -Invex Casa de Bolsa

14. -Interacciones

15. -ITAU BBA

16. -JP Morgan

17. -Morgan Stanley

18. -Monex

19. -UBS

20. -Vector

INTERNAL CONTROL

Mexichem’s bylaws provide the existence of the Audit and Corporate
Practices Committees, intermediate corporate organs constituted in
agreement with the applicable law to assist the Board of Directors to
carry on their functions. Through these committees and the external
auditor it is given reasonable safety that transactions and company’s
acts are executed and registered in accordance with the terms and
parameters set by the Board and directives of Mexichem, the applicable
law and different general guidelines, criterion and IFRS (International
Financial Reporting Standards).

APPENDIX 1: RECONCILIATION SUMMARY OF QUARTERLY RESULTS 3Q16/3Q15
RELATED TO THE RESTRUCTURING PROCESS IN THE FLUOR BUSINESS GROUP

USD in thousands			First Quarter								Second Quarter								Third Quarter
			2016				2015				2016				2015				2016				2015				Var
Net Sales			1,262,383				1,437,475				1,427,005				1,516,719				1,400,267				1,442,937				-3	%
Cost of Sales			903,023				1,068,626				998,400				1,081,297				1,011,919				1,042,481				-3	%
Gross Profit			359,360				368,849				428,605				435,422				388,348				400,456				-3	%
Operating Expenses			250,088				276,452				549,336				260,445				14,228				259,605				-95	%
Operating Income			109,272				92,397				(120,731	)			174,977				374,120				140,851				166	%
Financial Cost			43,411				67,932				41,516				61,575				50,491				55,307				-9	%
Equity in income of associated companies			(927	)			727				(2,688	)			(222	)			131				(1,378	)			-110	%
Income from continuing operations before income tax			66,788				23,738				(159,559	)			113,624				323,498				86,922				272	%
Income tax			17,388				7,943				(30,093	)			43,211				93,085				29,248				218	%
Income from continuing operations after income tax			49,400				15,795				(129,466	)			70,413				230,413				57,674				300	%
Discontinued operations			583				(1,662	)			599				(2,446	)			(6,573	)			(3,241	)			103	%
Consolidated net income			49,983				14,133				(128,867	)			67,967				223,840				54,433				311	%
Minority Stock holders			(610	)			(4,837	)			(96,067	)			3,571				68,551				413				16498	%
Majority stock holders			50,593				18,970				(32,800	)			64,396				155,289				54,020				187	%
EBITDA			200,418				199,007				(29,401	)			266,320				465,881				235,883				98	%

FLUOR BUSINESS GROUP INCOME STATEMENT USD in thousands
			First Quarter										Second Quarter										Third Quarter
			2016			2015			Var				2016			2015			Var				2016			2015			Var
Net Sales			139,376			160,548			-13	%			164,829			173,684			-5	%			145,251			147,537			-2	%
Operating Income			33,375			41,550			-20	%			51,399			49,853			3	%			44,368			47,332			-6	%
EBITDA			48,562			57,924			-16	%			65,903			65,796			0	%			59,283			61,662			-4	%

CONSOLIDATED BALANCE SHEET
			March						June						September
USD in thousands			2016			2015			2016			2015			2016			2015
Total Assets			8,840,462			8,334,563			8,762,034			8,638,262			9,081,771			8,545,695
Cash and temporary investments			586,462			403,207			661,521			603,331			651,027			537,252
Receivables			896,554			1,018,378			928,719			1,041,746			963,233			972,386
Inventories			660,804			716,009			644,683			713,823			648,302			673,696
Others current assets			150,362			254,480			131,690			202,305			547,257			195,956
Long term assets			6,546,280			5,942,489			6,395,421			6,077,057			6,434,477			6,166,405
Total liabilities			5,040,949			4,928,943			5,004,523			5,102,899			5,070,110			4,952,846
Current liabilities			1,829,931			1,646,637			1,925,826			1,761,521			1,932,432			1,703,869
Long term liabilities			3,211,018			3,282,306			3,078,697			3,341,378			3,137,678			3,248,977
Consolidated shareholders'equity			3,799,513			3,405,620			3,757,511			3,535,363			4,011,660			3,592,849
Minority shareholders'equity			816,343			499,457			775,063			601,672			888,819			688,791
Majority shareholders'equity			2,983,170			2,906,163			2,982,448			2,933,691			3,122,841			2,904,058

ANNEX 2: SUMMARY RECONCILIATION OF INFORMATION BY SEGMENT

Reclassifications - Comparative information by segment reported
in Q3 2016 interim financial notes (Note 12) for the year ended December
31, 2015, has been reclassified retrospectively to conform with the
presentation used as of September 30 2016, to present the elimination of
investment in subsidiaries by business group under the heading of other
assets, which were previously presented under the heading of
consolidated eliminations column. This reclassification does not impact
the consolidated assets amount.

			As of September 30, 2016
			Vinyl			Energy			Fluor			Fluent			Holding			Eliminations				Consolidated
Current Assets
Cash and Cash equivalents			98,624			93			86,344			335,830			130,136			-				651,027
Net Account Receivable			550,812			23			100,427			623,009			2,575			-				1,276,846
Other current assets			257,490			1,684			332,164			526,615			450,091			(863,897	)			704,147
Assets held for sale			-			-			10,887			4,387			-			-				15,274
Total Current Assets			906,926			1,800			529,822			1,489,841			582,802			(863,897	)			2,647,294
Property, plant and equipment			2,644,612			4,304			395,568			1,166,623			1,594			-				4,212,701
Net other assets			606,068			-			168,451			1,436,539			773,796			(763,079	)			2,221,775
Total Assets			4,157,606			6,104			1,093,841			4,093,003			1,358,192			(1,626,976	)			9,081,770
Current Liabilities
Bank loans and current portion of long-term debt			20,415			-			26,429			17,484			-			-				64,328
Suppliers and letters of credit of suppliers			752,369			-			33,672			502,785			3,264			-				1,292,090
Other current liabilities			521,999			858			22,178			469,742			410,817			(867,183	)			558,411
Liabilities associated with asset held for sale			-			-			17,603			-			-			-				17,603
Total Current Liabilities			1,294,783			858			99,882			990,011			414,081			(867,183	)			1,932,432
Bank loans and long-term debt			91,784			-			54,735			3,510			2,099,125			-				2,249,154
Long-term other liabilities			503,080			129			204,974			662,645			160,510			(642,814	)			888,524
Total Liabilities			1,889,647			987			359,591			1,656,166			2,673,716			(1,509,997	)			5,070,110

			December 31st, 2015
			Vinyl				Energy				Fluor				Fluent				Holding				Eliminations				Consolidated
Current Assets
Cash and Cash equivalents			128,778				77				98,071				254,181				172,167				-				653,274
Net Account Receivable			283,084				(5	)			125,863				484,233				(8,831	)			-				884,344
Other current assets			269,751				307				349,241				423,497				444,090				(789,156	)			697,730
Assets held for sale			-				-				11,533				4,972				-				-				16,505
Total Current Assets			681,613				379				584,708				1,166,883				607,426				(789,156	)			2,251,853
Property, plant and equipment			2,620,435				5,078				420,104				1,157,053				257				-				4,202,927
Net other assets			620,781				-				179,868				1,440,082				637,391				(663,226	)			2,214,896
Total Assets			3,922,829				5,457				1,184,680				3,764,018				1,245,074				(1,452,382	)			8,669,676
Elimination reclasification			(1,779,917	)			(4,802	)			(129,858	)			(268,442	)			(3,329,714	)			5,512,733				-
Total Assets			2,142,912				655				1,054,822				3,495,576				(2,084,640	)			4,060,351				8,669,676
Current Liabilities
Bank loans and current portion of long-term debt			16,103				-				17,879				9,671				-				-				43,653
Suppliers and letters of credit of suppliers			709,595				1				38,957				451,244				1,224				-				1,201,021
Other current liabilities			490,786				156				67,111				374,147				449,357				(827,287	)			554,270
Liabilities associated with asset held for sale			-				-				19,617				-				-				-				19,617
Total Current Liabilities			1,216,484				157				143,564				835,062				450,581				(827,287	)			1,818,561
Bank loans and long-term debt			83,445				-				84,320				5,771				2,117,886				-				2,291,422
Long-term other liabilities			496,332				91				209,364				750,607				71,596				(647,078	)			880,912
Total Liabilities			1,796,261				248				437,248				1,591,440				2,640,063				(1,474,365	)			4,990,895

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