Investor Presentaiton

• October 12, 2021 CERAMIC: VALUATION GBM WE ARE INITIATING COVERAGE ON CERAMIC WITH A MARKET OUTPERFORMER RATING AND A 2022 PRICE TARGET OF P$75, REPRESENTING A -40% RETURN. Our price target is based on a DCF valuation, where the perpetuity cash flow of P$2.5 billion is based on the perpetuity exercise below, which considers the company's ceramic tiles capacity utilization rates (including an expected expansion) and the revenues of its other business segments under different EBITDA margin scenarios. Our DCF approach is discounted at a 10% WACC, including a liquidity premium of 1.7% and a perpetual growth rate of 3.5%. DISCOUNTED CASH FLOW APPROACH -Figures in MXN Million 2021e 2022e 2023e 2024e 2025e 2026e EBITDA 1,990 2,137 2,258 2,380 2,327 2,382 Perpetual CF 2,500 VALUATION ASSUMPTIONS Working Capital -205 -173 -344 -221 -72 -27 Revenues '20-'25 CAGR 5.3% Taxes -334 -366 -383 -406 -392 -402 -506 EBITDA '20-'25 CAGR 5.5% CAPEX -653 -1,403 -1,020 -815 -840 -857 -815 Tax Rate 30.0% FCF to the Firm 196 510 939 1,023 1,095 1,179 Avg. CAPEX (% of Revenues) 4.5% WACC 10.0% Growth g 3.5% DCF 464 775 768 748 12,346 WACC % of Debt Net Present Value of Cash Flows $15,101 (-) Net Debt '22e 3,474 (-) Minority Interest 833 (-) Underfunded Pension Plan 330 (+) ICC 50% Ownership 100 (=) Theoretical Market Cap $10,563 # of Shares (in Million) 2022e Theoretical Price Upside 142 $75 38% 30.0% Cost of Debt 6.3% % of Equity 70.0% Beta 0.9 Risk-Free Rate 5.0% Market Risk Premium 5.8% Cost of Equity* 11.6% WACC 10.0% *Includes liquidity premium PERPETUITY EBITDA Our perpetual EBITDA of P$2.5 billion considers the following: • 2025e ceramic prices increasing in line with inflation The company's incremental EBITDA from an expected -20% capacity expansion • Long-term EBITDA margins of 16.5% including IFRS 16 CERAMIC'S Consolidated EBITDA Mg. Perpetual EBITDA (MXN Billion) Ceramic Tiles Capacity Utilization Rates CERAMIC 5Y Avg. 75% 80% 85% 90% 95% 14.5% 1.8 1.9 2.0 2.1 2.2 15.5% 2.0 2.0 2.1 2.2 2.3 Long-Term GBMe 16.5% 2.1 2.2 2.3 2.4 2.5 17.5% 2.2 2.3 2.4 2.5 2.6 Record High (2016) 18.5% 2.3 2.4 2.6 2.7 2.8 LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 52

View entire presentation