A VISION TO OUR FUTURE ANNUAL REPORT 2019 53 52 51 50 49 48 42 38 31 27 23 21 20 18 9 7 6 5 3 Contents Our business Our Community Environment Our Employees Our Ethics Vitro Sustainability Corporate Governance 2019 Data Highlights: Letter to our Stakeholders Global Presence Vitro Brands Our Company Our History Flat Glass Governance Structure andCommittees Architectural Glass Business Overview Vision for asustainablefuture Amid adversity, strategic solutions 90 89 79 78 71 70 69 69 68 68 68 64 63 63 62 61 61 60 59 59 57 56 56 55

Estados Financieros Consolidados Carta de verificación GRI Index Membership inorganizations andassociations Financial andoperating analysis Containers 2020 outlook:a vision for thefuture 2019 Results del Álcali Industria Vitro Automotriz 2020 outlook:a vision for thefuture 2019 Results Machine Manufacturing Solid strategies totranscend Operating flexibility and proactivity: tools 2019 overview Vision for asustainablefuture Strategic actions Vision for asustainablefuture Calidad y servicio,binomiodeconfianza Estrategias para capitalizar oportunidades Vision for asustainablefuture best option. Exacting standards andoperating efficiency, tobe the Solid strategies

2 ANNUAL REPORT 2019 Glass (PPG) Pittsburgh Plate The company factory intheUnited States. openedthefirst glass

1883 Our Vidriera Monterrey Monterrey, Nuevo León. plant, startsupoperations in the first glass container History 1909 PPG becomes with apatented process. successfully mass-produce glass one of thefirst companies to

1920 Vitro opens in Nuevo León. its first flat glassplant

1929 environmental glass. the first tinted, heat-absorbing PPG creates Solex,

1934 making automotive glass. Vitrobegins

1960 the float glass process. glass producer intheUSto use PPG becomes thefirst

1963 operation in Mexico. line startsup float glass The first

1968 3 ANNUAL REPORT 2019. promoting thehistory of glass. of recording, preserving and opens itsdoors, with theaim The Glass Museum 1991 Our History automotive andarchitectural glass. is created to produce anddistribute Vitro Colombia 1996 serving theneedsof theCFT market container plants inthe world begins One of thelargest glass 2007 the first time. Company” distinction for “Socially Responsible Vitro obtains 2008 Vitro, S.A.B.deC.V. industry leader. processes that madethecompany an products, plants, peopleandproven acquires PPGFlat Glass, retaining the 2016 Meadville, Pennsylvania. and anautomotive float glassplant in portfolio withcuttingedge technology the company’s automotive glass from LKQ Corporation, strengthening the purchase of Pittsburgh Glass Works Vitro completes 2017 Vitro celebrated which itoperates. employees andthecommunities in development, andcaringaboutits always strivingfor sustainable cutting-edge products and process, the glassindustry by providing 110 years of beingaleader in 4 ANNUAL REPORT 2019 Our Mission Our Vision

We redefine the power of cooperation to gen- Together we will explore the full potential of erate value and bring innovative glass solutions glass to improve how we move, build and live in Our to our clients and communities. the future.

COMPANY Our values 2019. REPORT ANNUAL GRI: 102-1, 102-3, 102-5, 102-11, 102-16. Focus on the customer Our people Our customers are at the heart of everything Bringing together our talent to grow and work Vitro is one of the leading glass manufacturers in Our more than 110-year history is the bedrock on we do. together as a single entity. North America and one of the largest in the world, which Vitro and those who trust us have together backed by more than 110 years of experience in the built a solid, enterprising company, committed to its Operating excellence Integrity industry. Founded in 1909 in Monterrey, Mexico, mission of creating value and developing innovative Always going beyond what is expected of us, Always acting with honesty and in keeping with the Company has subsidiaries around the world glass solutions that meet the needs of clients and with greater efficiency, confidence and quality. our principles. that offer quality products and reliable services to the community. meet the needs of two businesses: glass contain- Innovation Sustainability ers and flat glass. Vitro’s companies make, process, We are progressing along the path to sustainability, Bringing new ideas to processes and opera- Creating the conditions to operate and grow in distribute and sell a wide range of glass articles that with a clear vision of the future: to explore the full tions to continuously improve our results harmony with our environment and communities are part of the daily life of millions of people. Vitro potential of glass to improve the world around us. brings solutions to numerous markets--cosmetics, where we serve fragrances and pharmaceuticals, automotive and architecture. It also supplies chemical products, raw materials, and machinery and equipment for in- dustrial use. As a socially responsible company, Vi- tro pursues various initiatives within the framework of its sustainability model, in order to positively in- fluence economic social and environmental aspects relating to its stakeholders, through responsible corporate management.

Our business philosophy is grounded in our values and in the commitment for which we are known, as we work for the well-being of all our stakeholders and the environment in which society evolves.

employees 5 Vitro brands industries Diverse Solarban Solarban Solarban Solarban Solarban Solarban Solarban Solarban Solarban Solarban Solarban Solarban Solarban TM TM TM TM TM TM TM TM TM TM TM TM TM

z50 R100 72 70 XL 67 60 Azuria Solarblue Pacifica z75 90

Vistacool Solarcool Solarcool Filtrasol Vistacool Klare CLARO Tintex Filtraplus Vistacool Starphire Aquity TM TM TM

TM

TM TM TM TM TM TM TM

Solarbronze Solargray Azuria Pacifica

Pavia Blindex Pacifica Azuria Platia Optigray Vitrosol Kolore Pyrosol Reflectasol Solarblue Tintex Plus TM TM TM TM TM

TM TM

TM

TM Optiblue TM

TM TM

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6 ANNUAL REPORT 2019 • Architectural Sector • Machinery andMolds Acabados • Automotive Sector Agregado enCristal • • • • • • • • • Glass containers VITRO, S.A.B.DEC.V. Glass Holdings OUR MAINCOMPANIES Machinery Manufacturing Vitro Automotive Glass, LLC Vidrio Plano deMéxico LAN Vitro Flat Glass, LLC Productos de Valor Vitro Flotado Cubiertas Vidrio Plano deMéxico Vidrio Plano deMexicali Viméxico Vitro Flat Glass, Inc. Servicios Integrales de Vitro Packaging, LLC Global

(2) (3) (2) Presence

(2) antes Vitro Flatantes Vitro • • • • • • • • • Sp.z o.o. • • • • • • • • Chemicals andRaw Materials • • Automotive Glass Co. Hong Kong Limited Pittsburgh Glass Works GmbH Pittsburgh Glass Works, S.à.r.l PGW Holdings, LLC Vitro Colombia VVPAutoglass Cristales Automotrices Vitrocar VitroAutomotriz Shandong PGW Jinjing Pittsburgh Glass Works, Pittsburgh Glass Works PGW Technik GmbH Pittsburg Glass Works, LLC Vitro Chemicals Comercializadora Álcali Industria del Álcali Distribuidora Álcali Laminated and Tempered Crystal Vitro Do Brasil Industria EComercio (6) GRI: 102-4,102-6 (1) (2) (5) (2) (3) (8)

(2) (4) (7) Guatemala Mexico United States Peru Venezuela Ecuador Nicaragua El Salvador (1) (8) (7) (6) (5) (4) (3) (2) Company with operations inChina Company with operations in Luxembourg Company with operations in Poland Company with operations in Hong Kong Company with operations in Germany Company with operations inCanada Company with operations in U.S. Company with operations in Colombia Canada Puerto Rico Costa Rica Argentina Colombia Honduras Panamá Bolivia Brazil Chile Cuba 7 ANNUAL REPORT 2019 Poland Belgium Portugal Spain France Germany Switzerland Italy United Kingdom Sweden Slovakia Hungary Austria United Arab EmiratesUnited Arab Saudi Arabia Lebanon Turkey Qatar Israel Hong Kong Singapore Australia Malaysia China Germany United States Mexico Our Plants China India South Korea Taiwan Japan Brazil Colombia Canada Poland Luxembourg Peru Costa Rica Ecuador 8 ANNUAL REPORT 2019 and temporarily suspended construction work in work construction suspended temporarily and investment public halted government the Mexico, In pate have beengradually slowing. partici we which in segments business the expanded, economies although Canada, and StatesUnited the In were weak. economies activities, commercialhave we and inLatin America, particularly inthe countries were all, at growth no saw economy Mexican the 2019, In Market conditions what itistoday: asolid,sustainablecompany. become to 1909 since it enabled have management, its of decisions well-aimed the as well as people, its of commitment the and determination its but history, its throughout downs and ups seen has Vitro stable. Nevertheless, the company’s financial position remains this period. sults for the year and affected the goals we had set for company’s the otherinfluenced factorsand re These serve. we industries main the of activity the in down slow a causing consumers, and investors by cisions de on heavily weighed operate we where countries the in events geopolitical over uncertainty and atility forMarketVitro.one vol challenging a yearwasLast DEAR STAKEHOLDERS: Letter to our Stakeholders - - - - - GRI: 102-10,102-14,102-15,102-46, ment improved over the year 2018. Brazil, the performance of the perfume container seg demand their for glass containers. In reducing the United States and volumes, production about cautious Perfume industries. and cosmetics manufacturers pharmaceutical have been very and cosmetics the domestic perfume, affected has situation economic The market the has worsened inrecent years. in situation This States. United the to cars ican Mex of exports did as noticeably, declined industry market trend toward electric cars. In Mexico, the auto ume ina climate of excess capacity, in addition to the vol- for vie who competitors between hostility trade across slowdown, declined economic of because primarily world, the also has industry automotive The margin resulting the shrinkage. and competitors among war capacityofglut a and products market,the on pricea excess causing year, the of half first the in weakness of signs to show began construction States, United the In industry. the in contraction a causing permits, construction new issuing stopped also and progress, cal industry, inhibitingamarket to the which Company system, health the largest buyer in public the country’s pharmaceuti the through medications supplying for In 2019, the Mexican government modified the system - - - competitive intheindustries where weparticipate. ties in order to offer added value products and be more facili modernize to technology in invest to continues Vitro this, anticipation of Ingrowth. of path clear a to return will markets main our and temporary, be will this that convincedare we marketweakness, Despite prices in Mexico had an impact on the financial results. energy in rise a addition, In containers. glass supplies - 9 ANNUAL REPORT 2019 justments that created some interruption cost; the cost; interruption some created that justments ad- some required which States, United the in plant theCarlisle at operations glass float of startup The Architectural Glass operations as well. our affecting circumstances internal some also were there although results, business our influenced kets Adverse mar economic and climate the conditions in Business performance debtplies anet toEBITDA ratio of 1.62times. im- which million, USD485.5 was debt net and lion, mil- USD715.9 was 2019 31, December of as debt total footing: solid very on remains position nancial Company’sfi- the that informyou to Wepleased are capital structure. and costs financial improveVitro’s is program this of additional year. purpose foran The extended maybe co Santander, S.A., that would last for three years and agreement to begin a portfolio sale program with Ban- Decemberon Also, Companythe 2019 20, an signed dicated loan. to BBVA Bancomer, as Administrative Agent of a syn- million USD50 of pre-payment the announced Vitro 2091, 18, February on future, the opportunities in arise growth may that any seize to prepared being pany’s goal of staying in sound financial condition and interest linepayments, in the bothCom- actions with reduce and structure financial improveits orderto In Financial Position - tural glass with Solarban architecofrecord sales foryeara had Mexicowe In of closecompetition. climate a in prices adjust to able were we parallel, In relationships with important clients and forge new commercial ties with others. restore helped us behind stands that experience the and productsouroftures fea- quality the with combined approach, direct The array of added value glass that best suit their projects. wide our fromproducts the recommending in clients work specification team whose main goal is to a support created we expected, as off taken not has glass ty Aware of market conditions in Mexico, where special personalized way possible. to the projects when they need them, and in the most solutions the offering and needs their with precisely becometo closer ourto clients, concerning ourselves is goal ultimate The segment. industrial and idential rescommercial,- the serveseparately to teams in bring ing by States United the in are to sales our wedecided bolster in2019 matters, administrative On the finalsettlement. insurance2020 in companies,haveand to expectwe our by covered partially been had Carlisle at ruption Toward the end of the year, costs relating to the inter profitability. towhich some extent hampered our productivity division, and Glass Architectural the in faced we lenges chal- the of some just were line; glass coater jumbo new the up starting providedforin had wecurve ing learn the and plant; same ofthe 2 repaircoldofline ® solar control coating. - - - - - 10 ANNUAL REPORT 2019 manufacturers andclients inthespare partsmarket. equipment original supply to segment, glass auto - motive the in leadership Vitro’s strengthen will that investmentan ofnew in million technologiesUSD60 approved Directors of Board the 2019, February In well. Both of these arevery located performedin García, market Nuevo León. parts spare the on focused plant the and market, equipment original the serve to line windshield new a launched year,last we Also parts market will feel theconsequences in2020. spare the in operations that believe we situation, of type proceduresappropriateforthis the all followed culties that destabilized the process, and although we shield plants in Mexico City wind- ran intothe irremediableof diffi- one at equipment 2019, December In the endof last year’s third quarter. was a work stoppage at General Motors (GM) toward Another factor that affected our sales results last year usual levels of operating excellence andprofitability. and improve competitiveness, and we will resume the benefits program bring the will 2021, quarter of first the past get we once run, long the over that vinced con- are we but inefficiencies, and costs temporary So far, the production transfers have generated some clients. our on impact any minimizing while efficient, automotive order in plants, make to operations more In 2018, we began a program of reconfiguring Vitro’s Automotive Glass and running and the remaining three will be installed installed be will three remaining the and running and up is already ofwhich one technology, cutting-edge processes,2019 in acquiredwe four machines SI with all improvementcontinuous in of goal the with line In es andfacing growing pressure from competitors. lay challenges its moreits optimizing resourc while in ness had a busi- good year. It Container maintained productivity levels, the standpoint, operating the From Containers erating inthepremium automobile segment. Europeanop- marketthe in clients serves plant This process. outstanding saw Poland in operations Our dows andsunroofs. win- side laminated coatings, windshields, like tions solu- glass automotive advanced of supplier ferred pre technologies - the become to ofcapacities our aligning at aimed series a include investments The - participate, because of exchange-ate volatility and volatility market uncertainty, theperfumeindustry weakened. exchange-ate of because participate, we where countries American Latin the of rest the In some extent punishedour margins. but requirements that invoicing be in local currency volume, to in rise significant a saw Brazil and positive, was growth States, United the in irregular: wereyear last segment container perfume the of dynamics The product lines. halfof the year, venturinginto other markets newand second the in impact that reversing in succeeded ital my. But the strategies and capacity of our human cap- econo- Mexico’s of performance flat the of because half first of thethe Inyear, business declined volumes the businessandmeet thedemandsof our clients. of efficiency operating the improve to all equipment, wrapping product and equipment inspection tomatic au- machines, finishing in invested also We 2020. in new clients to our portfolio. with our products’ reputation, we were able to add ten employees,along ourofcompanyourexperience and Thanks to commercial tactics applied, the capacity and our portfolio. newclients to totenadd We wereable 11 ANNUAL REPORT 2019 accessnew markets strengthento commercial initia to capacities technological and operating its on ing capitaliz business, autonomous an as to strength gain continues FAMA strategies, its with keeping In various industries. in automation and containers glass producingfor ery machin like growth, stronger offer that segments er the no longer profitable molds area and focus on oth- Duringthe 2018. yearclose to decision the made we sales growthover2.5% a achievefor targetdid year,the its it reach not did it Although indicators. all by higherreportedyields it 2019, In serves. it industries applycan capacityexperienceit and its the in various (FAMA) continued to explore potential markets where business manufacturing equipment and machine Our Machine manufacturing new clients, with excellent results. nine added we 2019, In plant. Chloride Calcium the for revenues boosted America South and States ed creased focus on exports bore fruit: sales to the Unit in- an with markets new out seeking ofstrategy The 12.1% and4.8%,respectively. ofgrowth showed which oil, and yearglass werelast market dynamic more the Among value. in increase 4.9% a and tons metric of terms in volumesteady a with performance, 2018 their with line in remained Álcali del Industria by served segments the of Most compared to2018. 2% by output increase to able still were we but get, tar volume production our pre- reaching from us problems vented operating business, chemical our In del Álcali Industria - - - - - tion and and tion closerremain our to produc so clients better can we to improve in order plants automotive our among capacity transfer and reorganize to plan The surance companies. in- fromthe losses recoupof to these some hope we although accident, 2017 the following repair under was which plant Carlisle the at work of interruption Another factor were the expenses originating from an strong offset enoughto theless favorable price mix. not was segments some in volume higher so sures, pres- price unleashed and aggressive more petitors com- made industry US in capacity excess 2019, In tries where we operate or have a commercial presence. and the weak or flat growth of economies in the coun products our are sold, markets which in the in traction con worsening the to largely due wereresults These million, a2.6%reduction from 2018. USD300.4 was EBITDA year. previous the to pared ed net sales of USD2.18 billion, a decline of X% com- ofDecember2019, As Vitro31, reportedconsolidat - 2019 Results of Vitro Architectural Glass and Vitro Automotive affiliates Glass. the supporting tooling, and solutions mation Itfirst projectsits up started also supplier a as of auto petitiveness. tors, offering clients high levels of efficiency andmo- com- servo of line complete a have which machines, companythe 2019, In delivered first the NextGen 40 specializes. it which in segments various the in clients potential tives, while opening channels of communication with - - - - 12 ANNUAL REPORT 2019 row, we received the Socially Responsible Enterprise (SRE) (SRE) Enterprise Responsible Socially the received we ina row, year the twelfth for In 2019, evaluated. and tinguished dis also are products and processes actions, sustainable Our employees, their families andthecommunity. our of well-being the and environmental responsibility vation, clientmeetand surpass expectations in terms of quality, inno products and processes our that ensuring to attention close we pay requirement, anindustry as or regulations, and laws government with compliance in volition, own our ofWhether about and working to promote asustainableenvironment. from society in all senses, because they know we are concerned human time, and its the support of and confidence result we have the received primarily is endurance and trajectory Vitro’s and preserving theenvironment. which we interact as a business and as persons, and protecting employees our with and us surround that communities ofthe families, their and well-being the is interest primordial Our able environment. sustain and safe healthy, in operating to committed are and why for more than eleven decades we accept is responsibility .That for development social encourage and environment the for care growth, economic lead value, comprehensive create Vitro knows that a sustainable company is a company that can Sustainable Development have anindirect impactonour results. economic activity. Althoughthese are exogenous factors, they of pace the dampened and investorscautious keptvery lems, prob crime rising and spending, government restricting icies meet In Mexico, rising fuel prices, economic stagnation, certain pol certain stagnation, economic prices, fuel Mexico,rising In greater competitiveness. and tremendousbenefits bring measures future these will the affected our returns this past year, but we are confident thatin their needs, caused us some short-term expenses that expenses short-term some us caused needs, their - - - - - This report provides more details on our progress and achieve our companies andthecommunities around us. within and of outside development comprehensive promote We create or play an active role in initiatives and programs that the area of corporatesocial responsibility. in practices best international and national of implementation consistent and commitment of our recognition in distinction system. our in largest the León, Nuevo García, at 2 no. furnace glass float the major on repairs out carrying Additionally, be will we for their project until construction is complete. glass ideal closely,fromprospectingthe accompanying clients on efforts our focusing be now will we Mexico, in team tion specifica work the Statesand United the in marketsegments serve commercial areavarious to the in teams Havingdefined capacity insufficient of stemming from interruptions plantat theCarlisle in2017. because past the in volume lost we where clients, relationship with our strengthen restoreand to is step next stabilized. have operations The products,and and structureright the the haveArchitecturalIndivision, we Glass and consumers. clients of demands the meet and trends industry of abreast stay orderto in technology, advanced most the acquiring and out seeking of approach our continue will We upgrades. and modernization machinery and equipment process, on bet to continuing and strategies, commercial our firming businesses, our consolidating of process the continue will we Internally, of many challenges. practices by the competition, all tell us that 2020 will be a year markets the in weserve, investor aggressive and caution commercial downturn the growth, economic weak of Projections 2020 Outlook: A vision for thefuture ments last year inthearea of sustainability. - - 13 ANNUAL REPORT 2019 install finishingequipment to efficiently serve clients there. the commercial office we opened in that country. Our intent is to We intend to capitalize on our growth potential in Brazil through um liquors, candlesandhomefragrances. and pursue niches market growth new in those in which the response explore has been positive--premi- to continue will We needs. their to adapt to clients with synergies explore recover,will we segments pharmaceutical and cosmetics perfumes, the as but For the Container business, expectations are not much different; ing markets like SUVs, hybrid cars andelectric vehicles. Our strategies will also aim at strengthening our position in grow- acoustic protection, among others. and safety connectivity, screens, augmented-reality efficient solutions, energy provide to capacity the us giving technology, high integrated with line glass automotive new a up start will it tive Glass at the forefront of innovation inthisindustry. In2020 automotiveing glass. investments These position Vitro Automo- for mak capacities process cutting-edge with operations in lion fourlast mil- the Inyears,78 USD investedmoreVitrothan has will bebetter prepared to be even more competitive. we complete, is restructuring this once that confidence areWe quality. required the with and time on clients existing our all of mates, but during this process we will be sure to meet the needs automotive glass plants will take the rest of the year, by our esti- our among production of redistribution and reorganization The - ticipate the needs of our clients and the end users of our products. ation of value, proactively and with a strict sense of urgency, to an of the future. Our aim is to direct all of our actions toward thecre vision clear a to committed employees 15,000 than moreareWe continue to earnusthetrustand recognition of our clients. will work, our in place we emphasis the and teamwork,ex perience, of years 110 than more our that convinced are Vitro at We and recogni tions that attest tothequality ourof processes and products. certifications and technology, advanced structure, financial solid a have We them. with deal to necessaryresources the have we but scenarios, challenging demanding, facing Weare ue-added businessesthat offer better conditions for profitability. company is redirecting its capacities and efforts toward higher val Wecontinue our process of transformation andthe consolidation; glass-casting and tooling. and will continue analyzing possibilities in the areas of automation, its efforts to increase sales to clients in the glass container industry FAMA,firmly division, continuewill equipmentour machineryand used, andnew geographies to which can be we canexport. ourproducts where markets new for search to continue ductivity of all four and plants 100% ofreaching capacity. We pro will improving on concentrate will we business, chemical the In portfolio by addingnew prospects. continue to earn the patronage of our existing clients and grow our our operating structure and makes us more competitive, so can we fortifies equipment other and machines SI in investments Recent ------company. assureda sustainable makeprofitable, our us efforts to thatcontinue will be Please Company. this in day by day undertake we initiatives and decisions the in confidence theirfor shareholders gratitude to every one of our stakeholders, and particularly to our ourexpress to likewould I team, Vitrothe ofeverymember committee and executive the Directors, of Board the of behalf On Adrián Sada González Board of Directors Chairman of the

February 19,2020 Adrián Sada Cueva Executive CEO

14 ANNUAL REPORT 2019 Financial Statements GRI: 102-45,201-1, The financialfigures are presented in accordance with Internatio nal Financial Reporting Standards (IFRS) (6) (5) (4) (3) (2) (1) nominal USdollars (Figures inmillionsof pesosunder IFRSstandards, except where otherwise indicated; dollar amounts are expressed inmillionsof Vitro, S.A.B.deC.V. y Subsidiarias Debt net of cashandequivalents. Represents investment infixed asset duringthe fiscal year, and therefore differs from investments presented under cash flow. EBITDA =operating income before others, plusdepreciation, amortization andemployee pensionfund obligations. Based onthe weighted average number of shares outstanding. Change from 2017to 2018. The functionalcurrency for the company in2018 was the U.S. dollar. INTEREST COVERAGE (TIMES)(EBITDA / EBITDA MAJORITY NET INCOME PERSHARE MAJORITY NET INCOME NET INCOME EARNINGS BEFORE OTHERS (EBIT) CAPEX NUMBER OF EMPLOYEES EBITDA MARGIN (%) EBIT MARGIN (%) TOTAL NET INTEREST EXPENSE) NET DEBT(5)EBITDA (TIMES) DEBT(5) EBITDA (TIMES) Capital contable mayoritario Capital contable total Pasivo total Activo total CONSOLIDATED NET SALES (5) (4) Offshore subsidiaries Export Domestic (6) (3)

INCOME STATEMENT FINANCIAL RATIOS BALANCE SHEET $ 2,180 15,035 2019 1,152 1,429 1,430 1,364 2,794 0.13 14% 160 300 155 401 627 1.6 4.5 2.4 7% 64 64 Dollars (1) $ 2,238 14,912 2018 1,247 1,467 1,468 1,303 2,771 0.34 11% 16% 154 365 162 162 245 343 649 1.2 5.6 2.0 Change (37.0) (7.2) (7.6) (3.4) (2.6) (2.6) (2.6) 17.0 % 4.3 0.8 4.7 0.8 (2) 15 ANNUAL REPORT 2019

CONSOLIDATED NET SALES Figures inmillionsof dollars

2019 2018 2017 2016 2015 2014 836 882 1,051 2,075

2,180

2,238

2019 2018 2017 2016 2015 2014 Figures inmillionsof dollars NET SALES CONTAINERS 182 205 218 216 235 240

Figures inmillionsof dollars NET SALES FLAT GLASS

2019 2018 2017 2016 2015 2014 649 672 802 1,852 1,960 2,001 16 ANNUAL REPORT 2019

2019 2018 2017 2016 2015 2014 Figures inmillionsof dollars (BEFORE OTHER INCOME AND EXPENSES) OPERATING INCOME 60 141 201 155 245

273

2019 2018 2017 2016 2015 2014 Figures inmillionsof dollars CONSOLIDATEDEBITDA 134 193 259 300 365

393

2019 2018 2017 2016 2015 2014 Figures inmillionsof dollars CAPEX 33 85 127 154 160 163 17 ANNUAL REPORT 2019 2019 Data Highlights: 4,300 Vitro campaign inMexico. trees reforested intheNaturalmente average training per employe. 54 hours enterprise inMexico. as asocially responsible 12 years from outsidesuppliers. of recycled glasscomes 23% of thecommunity. activities infavor +80 or reused. of our waste isrecycled 93% safety. million invested inhealthand +US$ 15.4 18 ANNUAL REPORT 2019 metric tons of glassrecycled in2019. hectares under conservation. protected and55,081 species 1,302 A total of 712,708 3,958 plants have ISO14001certification. of our originalandchemicalproduct 100% reduction inaccident rate. 37% our community activities. direct beneficiaries from +60,000

invested insocialandcommunity issues. US$ invested intraining. US$ 404,880 1,733,186 new hires. 19 ANNUAL REPORT 2019 ples of responsible corporate management. forand activities thatall ensuring out carried are according princi the to controls, group the companies the of management proper the for lines guide and policies strategies, executing and forresponsibleestablishing is Board The Act. Market Securities Mexican the in established is what than stricter is member board independent an as qualify to process the are which of percentageindependent.above the is This required percent by Mexicanlaw, and 41.66 members, 12 has Directors of Board The tal organizations and other organizations. social regulations, as well as the rulesindustry and standards issued byand non-governmen government all with fully complies and transparently acts In line with the highest standards of corporate governance, the Company Corporate Governance 41.66 percent of which are independent. The Board of Directors has12members, GRI: 102-18,102-22,102-33,102-34,405-1, - - - 20 ANNUAL REPORT 2019 TrusteesMonterreyde ofCáritas and Treasurer of the presariosofBoardNuevoLeónofofmember the and Bank), the Business Round Table (Central(CMN), MexicoGrupo de of Em- Bank the of Council Regional the Monterrey,of member in a Mexico. is Additionally, he Japan of Consul Honorary (IMCO), Competitiveness for Institute Mexican the of President Vice Cydsa; of Officer Executive Chief and Board the of Chairman Member since 1980 TOMÁS SADA GONZÁLEZ (1943) of Monterrey. University the of President the is also FernándezMr. in-American Council of the University of Georgetown. Lat- the of member Citibanamex, Aeroportuario Grupo Pacífico, del Grupo Cydsa, of directors of boards the of member and of ALFA Officer Executive Chief Member since 2011 ÁLVARO FERNÁNDEZGARZA (1968) León. Nuevo de Industriales de Grupo and (CMN) Negocios de Mexicano Consejo Cydsa, ALFA, of Member Board Chairman of theChairmanshipCommittee Chairman of theBoard of Directors Member since 1984 ADRIÁN SADA GONZÁLEZ(1944) Governance Structure and Committees dora andSabadell Banc. TeneICA CEMEX, - ALFA,of Member Board and Inc. Advisory, Fintech for Counsel Special and Chairman Member since 2013 DAVID MARTÍNEZ GUZMÁN(1957) Sachs, Avanzia and Across. Goldman Seguros, AXA Gruma, León, Nuevo México M Astrum Cydsa, Megacable, Xignux, Exchange,Mexder,StockMexicancomer, the Indeval, Cuauhtémoc, Transportación Marítima Mexicana, Ban- ber of the boards - mem of directors of a TV as Azteca, Cervecería served has He Vector. Grupo of director President of Mexder, as well as co-founder and founding general and Firm, Brokerage its of President and er Bancom - of CEO Financiera, Mr.Nacional of CEO mext, Capital. Banco- ABC of director managing and previously was Laborín Holding ABC of President Member since 2010 MARIO LABORÍNGÓMEZ(1952) academic scholarships. Fundación Martínez Sada, the organization that grants Chairman of the Board of Solfi and Board Member ofBoard Member and Solfi ofBoard the of Chairman Member since 2013 RICARDO GUAJARDO TOUCHÉ (1948) e xico, Banco de de Banco xico, Chief Executive Officer and Vice President of the Board Chairman of theCorporate Practices Committee Member since 2007 RICARDO MARTÍN BRINGAS (1960) Frameworkalso served and asManaging Director. Management Fund’sRisk the Reviewof the forPanel MonetaryofFund,External Chairman the as acted he International government.the federalAt Mexican the forCredit Public and Finance of Minister México and de Bank Banco of the Governor Settlements, of International Boardfor the of Chairman as served Has Orbia. and Sureste, del Bom Aeroportuario Grupo bardier, of Directors of Boards the of de and Treinta los of Grupo Member Asociados. y Ortiz Guillermo ofFounder Fundaciónand Chair PerJacobssonthe of man Pactual, BTG of Member Board and Partner Member since 2010 GUILLERMO ORTIZ MARTÍNEZ (1948) Grupo AXA. and FEMSAMonterrey, de ValoresBancomer,BBVA such as in companies positions executive various in the Federal Reserve Bank of New York. He hasserved Membera of Internationalthe Advisory Committee of Sureste,del portuario Coca-Colaand FEMSA.He was BBVA Bancomer, Bimbo, Liverpool, ALFA, Grupo Aero - - - 21 ANNUAL REPORT 2019 Chairman ofChairman Boardthe of GrupoofMVS; Chairman the Chairman of the Audit Committee Member since 2000 JOAQUÍN VARGAS GUAJARDO (1954) Commission. of a ities is the University and for Yale Trustee Trilateral co-chairs the President’s Council on International Activ Minister of Trade, and Minister of Finance. Currently, he Revenue, of Undersecretary as (1986-1994), ernment gov federal Mexican the in positions several held He Vitro.Tenaris, and México, Fondo companies ly-traded de México public and BBVABancomer of Member Board (CAM). de Arbitraje Centro and Auctions), tronic (Elec Aklara of FounderConsultores, SAI of Chairman Member since 1998 JAIME SERRA PUCHE(1951) Nuevo León since March 2019 Transformación (CAINTRA) de Industria la de Cámara Boardof the of Chairman Nemak; and ofMuseum Art, Board Member of Grupo Financiero Banorte, the Dallas Executive Chief Executive Officer of Vitro, S.A.B. de C.V. Member since 2010 ADRIÁN SADA CUEVA (1975) Cristalglass (2007-2012). of Vitro Cristalglass and Chief Executive Officer of Vitro Vitro Europa and Vitro Global, as well as Board Member of Board the of Chairman and Officer Executive Chief Member since 2008 JAIME RICO GARZA (1957) Endowment for theHospital RegionalMaterno Infantil. the of Chairman (ANTAD). Departamentales y Autos ervicio de Tiendas de Nacional Asociación and Leon Nuevo of Empresarios de Grupo (CMN), Negocios de México, Grupo Financiero Banamex, Consejo Mexicano ofDirectors of BoardSoriana. Member of Teléfonosde - - - - - Board of Grupo CMR. Board Member of Grupo Finan Grupo of MemberBoard CMR. Grupo of Board Non-Member Secretary Lic. Alejandro Francisco Sánchez Mújica Independent Board member C.P. Mario Martín Laborín Gómez Independent Board member Dr. Guillermo Ortiz Martínez Independent Board member Lic. Joaquín Vargas Guajardo President Lic. Ricardo Martín Bringas CORPORATE PRACTICES COMMITTEE OFTHE VITRO MEMBERS the University of Texas at Austin. from DegreesMaster’s and Derecho de Libre Escuela the from degree law a has He León. Nuevo of State rently a member of the Private Charitable Board cur for the is and corporations foreign and Mexican various of board the on served has He Knight. & Thompson ofcurrently is Vitro,and SeniorPartner law firm ofthe Pulsar/Savia,po VicePresident Chiefand Legal Officer ficer for a division of Grupo Kuo, Legal Counsel of Gru He has been Legal Manager for Indeval, Chief Legal Of ber) Mem Board (Non 2007 since Board the ofSecretary Member since 1980 ALEJANDRO F. SÁNCHEZ MÚJICA (1954) Association of Restaurant Chain Directors (1989). of Chairman and (1985-1987) Association Restaurant Mexican of Chairman (2000-2001), TelevisionIndustry and Radio of Chamber National of Chairman as served He has Sur. Médica and Pacífico del Aeroportuario Gru po Universal, El Costamex, Grupo Santander, ciero

------Secretary Claudio L.Del Valle Cabello Adrián Sada Cueva President Adrián Sada González CHAIRMANSHIP COMMITTEE Non-Member Secretary Lic. Alejandro Francisco Sánchez Mújica Independent Board member Dr. Jaime José Serra Puche Lic. Adrián G.Sada Cueva Ing. Jaime Rico Garza Independent Board member Dr. Guillermo Ortiz Martínez Ing. David M.Martínez Independent Board member Lic. Ricardo Martín Bringas Independent Board member C.P. Mario Martín Laborín Gómez Ing. Ricardo Guajardo Touché Ing. Tomás Roberto González Sada Lic. Álvaro Fernández Garza Independent Board member Lic. Joaquín Vargas Guajardo President Lic. Adrián G.Sada González DIRECTORSOF VITRO MEMBERS OF THE BOARD OF

Non-Member Secretary C.P. ClaudioLuis Del Valle Cabello Experto Financiero noMiembro Lic. Jonathan Davis Arzac Independent Board member Dr. Jaime José Serra Puche Independent Board member Dr. Guillermo Ortiz Martínez President Lic. Joaquín Vargas Guajardo AUDIT COMMITTEE OFTHE VITRO MEMBERS

22 ANNUAL REPORT 2019 VITRO SUSTAINABILITY Vitro’s businessphilosophy and values. and Our Community, consistent with Ethics, Environment, Our Employees is organized alongfour mainaxes: Our management, theSustainability Model and responsible corporate Under aframework of transparency a better future for all. Every day the company works to build generate value for allour stakeholders. high-quality goods andservices that sustainability strategy: offering reliable, behind Vitro’s firm commitment to its More than110 years of history stand 23 ANNUAL REPORT 2019 Materiality Assessment GRI: 103-2,102-2,102-40,102-47,103-1 tions andonstakeholder devising-making. opera- its on impact representsignificant which a planes, is- relevant most the sues for define Vitro on the economic, environmental and social to us enabled study This suppliers andrepresentatives clients, of private organizations. workers, administrators, executives, of surveys This process involved interviews, focus groups andonline starting in2020. in 2015,anddetermine which ones we would focus on defined issues the reassess to 2019 in study materiality needs onthepartof our stakeholders, we conducted a cent years, within adynamicenvironment andchanging Following a number of acquisitions by the Company in re- 2019 CODE W Q H Ñ G D R K V B A X Y S J L I Sustainable Suppliers Water management(consumptionand discharge) operates Positive impactsoncommunities where thecompany of benefits. Product addedvalue.Research and communication Identification of supplychainrisks of waste) Circular economy(recycling, reuse andmanagement Labor conditions Prevention of environmental impacts Regulatory compliance(national andinternational) Ethics, transparency andanti-corruption Occupational healthandsafety Risk management Climate changeandemissions Energy efficiencyand renewableenergy organizational aspectsandtechnology Innovation inproducts, quality, processes, marketing, stakeholders Reputation of product orservicesoffered among Product safety andquality ISSUE

Influence on STAKEHOLDER evaluations and decisions CODE M O N U C P T E F organizations Monetary andnon-monetarydonations to Volunteer activities Corporate governance Stakeholder engagement Vitro’s brandpositioningstrategy Corporate culture andemployeecommitment Diversity andinclusion Talent attraction andretention Human capitaldevelopment ISSUE and corporate governance impacts for Vitro MANAGEMENT Importance ofenvironmental, social 24 ANNUAL REPORT 2019 • • • • • • • LIST OF MATERIAL ISSUES: • • • Circular economy Climatechange and emissions energy renewable and efficiency Energy Diversity andinclusion Labor conditions Talent attraction and development Health andsafety Legal compliance Risk management Ethics, transparencyand anti-corruption and transparency Governance Environment Our employees:

• • • • • • Identification ofsupply chainrisks companythe operates where communities on impact Positive offered services among stakeholders or products of Reputation Product safety andquality keting, organizational technology aspectsand Innovation in products, quality, processes, mar Product added value Target Innovation Community Our our material issues. initiatives andgoalstoaddress medium- andlong-term committee wewilldevelop In 2020, through asustainability - 25 ANNUAL REPORT 2019 WITH THE FOLLOWING SDGS: VITRO’S ACTIONS ARE ALIGNED Alignment with theSDG changeand achieve well-being through rights. human favorin act commongoals, of sustainability, slow climate prise, civil society and communities in general to work for enter governments,privateencourage to is intentTheir nature. in global and scope in broad are goals 17 These defined by the United Nations Organization (UN). (SDG) Goals Development Sustainable the with aligned ment and with the communities we serve, our actions are environ- the harmony with grow in and operate to condi- tions creating in Sustainability of value the of Aware - 26 ANNUAL REPORT 2019 Since its origins, Vitro has proven its commitment and loyalty to all of its stakeholders, employees, clients, suppliers, shareholders, non- governmental organizations, among others. Commitment is embodied in its various initiatives, policies and procedures, formulated and regulated under transparent, responsible corporate management.

OUR ETHICS https://vitro.com/es/sustentabilidad/competitividad-integral.aspx View ourCodeof Ethics and Conductat: maximize commitment to this Code. also carry outcommunication campaigns to with our Code of Ethics andConduct. We ethical aspects, values andprinciples aligned All employees receive annual training about for corruption. operations, our in regulatoryour compliance and our responsibilities policy our of defines zero also tolerance It authorities. the and ments relationships governharmonious with maintaining environment,and the and protecting for caring communities, neighboring promoting commercialrelations, managing and rights, respecting human serving The Code of Ethics andConduct defines Vitro’s commitments to pre toplicable the countries where thecountry ispresent. regulationsbyand abide laws suppliers principles, ap and clients the employees, its operations, its of context the in that ensuring for has The Code of Ethics and Conduct is one of the chief tools the company GRI: 205-2 AND CONDUCT CODE OF ETHICS - - - 28 ANNUAL REPORT 2019 files complaint Whistleblower ALERT! through Alert! Complaint received 1 WHISTLEBLOWER PROCESS confirmation receives Whistleblower 2 of claim validate substance reviews caseto Internal Audit 3 are classified Complaints 4 Case isassigned 5 into casebegins Investigation 6

Vitro Ethics Committee Case presented to 7 and internal guidelines on theCode of Ethics Decisions madebased

8 Vitro operates. countrieswhere the oflanguage the in internet, or byphone accessed be can It is available for 100% of our operations, 24 hours a day, 365 days a year, and the timeit received until the matter isclosed. the Internal Audit area, which diligently manages every one of the reports from mous and trustworthy service. It is managed by the Ethics Committee through anonyto supply certified firm independent byadministeredan is system The pany’s businessethics and values, inanyof our operations. com the against goes that action some or recordmouslyreport anyquestion anony to party third interested or supplier client, employee, whether hotline this use can followed.Anyonestrictly is Conduct and Ethicsof Code our that The Alert! Anonymous whistleblowersystema is guaranteesthatvaluabletool GRI: 102-33,102-34,205-3,406-1,418-1,

based onrulingincase Penalties applied 9 notified Whistleblower SYSTEM WHISTLEBLOWER 10 closed Complaint - - - 29 ANNUAL REPORT 2019 1 30% 8 4 REPORTS BY CHANNEL 4 REPORTS BY TYPE 9 10 4 70% 24 Others Gifts, BribesorKickbacks Lack of discipline opportunity Recommendations andareas of Safety andenvironment discrimination Diversity, equalopportunitiesand Labor relations harassment Abuse of authority/Workplace Phone Web EXTERNAL EMPLOYEES VENDORS CLIENTS REPORTS BY SOURCE REGULATORY COMPLIANCE our operationsterm. intheshort,mediumandlong ofsocial, affect might that risks environmental and economic ananalysis conducts also It operations. with standards and regulations everywhere we have comply to Vitro’salignment and changes regulatory chargeWeofaddressingareaCompliancein a have portunities, in order to generate value in all respects. offset the threats and to exploit and magnify the op- fying and channeling these to minimize, prevent and every human activity, Vitro in is concerned with identi- opportunities and threats are there that Aware GRI: 205-1,206-1,307-1,411-1,412-1,416-2,417-2,417-3,419-1 3% 6% 6% 85% or socialissues economic, environmental our business,relating to the ordinary course of law that would affect compliance with the or significant non- no reports of material In 2019there were 30 ANNUAL REPORT 2019 OUR EMPLOYEES OUR COLLABORATORS, provide them with theidealconditions PRESENT AND FUTUREPRESENT AND is our humanteam, so we endeavor to For Vitro, our most valuable resource for their professional andpersonal OF VITRO growth.

31 ANNUAL REPORT 2019 GRAND TOTAL FAMA CORPORATE CONTAINERS AUTOMOTIVE ARCHITECTURE ALCALI EMPLOYEES BY BUSINESS 382 551 798 2,759 3,591 6,954 15,035 22% 20% EMPLOYEES BY GENDER EMPLOYEES BY JOB LEVEL 1% 80% 77% Man Woman Salary Executive Hourly 32 ANNUAL REPORT 2019 • GRI: 403-2, 403-3,

LABOR PRACTICES pacities and respect for our values; we prohibit discrimination in any business dealings or job on the basis of gender, color, GRI: 102-41, 201-3, 401-2, 401-3, 403-1, race, age, language, religion, sexual preference or any other 2019 REPORT ANNUAL 403-4, 407-1, 408-1, 409-1, 412-1, prejudice that may be grounds for discrimination.

COLLECTIVE BARGAINING Additionally, we comply with the applicable labor laws, includ- ing the payment of wages and benefits, and we establish the We encourage healthy labor relations that support freedom of necessary controls to avoid forced or child labor or human traf- association and recognize the right to collective negotiation. ficking at all times.

In our workplaces we create mixed committees to strength- In 2019, within our diversity and inclusiveness efforts, we com- en and guarantee this freedom of association, expression and mitted to the United Nations Women’s Empowerment Princi- assembly for our employees, as well as their representation in ples (WEP) and include a self-evaluation of our practices to decision-making. Among the matters covered in these commit- promote gender equity. tees are health, safety and training. QUALITY OF LIFE AT WORK In keeping with best practices and current laws on the mat- ter, Vitro makes sure that all of its companies have processes Because one of our priorities is the comprehensive advancement aligned with the International Labor Organization (ILO) decla- of our people, for more than 30 years Vitro has been conducting ration on fundamental principles and rights at work, as well as a survey to measure and diagnose how its employees feel about the U.N. Universal Declaration of Human Rights. the quality of life at work. In 2019 the satisfaction rate was 82%.

HUMAN RIGHTS Among the factors measured are facilities, working environment, camaraderie, work days, compensation, and other factors. Vitro is committed to respecting and enforcing respect for hu- man rights in each one of our operations and we recognize In 2019, 100 percent of our their importance and universality, aware that human rights are In support of this quality of life and good working environment, inherent, inalienable, universal, indivisible and interdependent. we sponsored tournaments in various sports during the year- operating staff were affiliated -soccer, basketball, golf, volleyball and others, where our em- We offer equal opportunities, training and professional growth ployees participate in internal leagues, building camaraderie with some collective bargaining to all our employees based on merit, work experience, job ca- and commitment to their jobs. agreement in countries where this legal category exists.

33 activity in2019. in at leastonehealthand safety 100% of our employees took part one working at Vitro. every for responsibility and motivation leadership, en strength to Environment(SHE) the Safety,and Health working toward a single goal: building awareness about All of our plants held a health and safety week in 2019, HEALTHSAFETY WEEKS AND or minimize thelikelihood of injury to our employees environment,the and als identify threats anticipate and ology,by which evaluatewemateriequipment, in risks Method ResearchWeAnalysisAccidentfollowand an taken to reduce the frequency and severity of accidents. be to needs action whereus tells Rate,which Accident Through this system, we keep track of indicators like the cal integrity of itspeopleandfacilities. physi the protecting thus proceduresand and policies creating company, health and safety industrial through the controls operating within conditions safe lishes estab System Safety and Health Comprehensive The providing ahealthy andsafe working environment. in founding its since companies pioneer the of one ing byenvironment.be workingmuch proved as Vitrohas their and team but human its is important factors, most the clearly many on depends success company’s A AND SAFETY SYSTEM (CHSS) COMPREHENSIVE HEALTH GRI: 403-2,403-3 HEALTHSAFETY AND

------37% of incapacitating accidents by In 2019 we reduced thenumber awareness of thesafety efforts at Vitro. raise to as well as practices, best the share to seeking network, activities our wereinternal sharedthese in All • • • • ties for employees, suchas: activi various organize to formed were Committees safety issues. US$15.47 billioninhealthand In 2019, Vitro invested more than Training in first aidandfirefighting health, parasites andotherhealth issues. visual pressure, blood high cancer, awareness-raising diabetes, about and checkups medical General tetanus, andother illnesses. Vaccination chikunguña flu, against campaigns fever, tion. Talks by experts on health care and accident preven - -

INCAPACITATING ACCIDENTS 2019 2018 2017 2016 79 89 97 125 34 ANNUAL REPORT 2019 22% issues like languages, health and safety,sustainabili and health languages,like issues rangestudied be fromthatThecan subjects general respondence, or online. person, in be by training space, can so and time cor availabilityofthe and requiredjobs, skills forcertain and needs the on based programsareThedesigned training, education andspecialization programs. ongoing through employees our of ment advance comprehensive the in invest we Vitro, At TRAINING GRI: 404-1,404-3,412-2 HOURS OF TRAINING BY TOPIC TRAINING AND DEVELOPMENTTRAINING AND 8% 4% 2% 2% 26% 36% - - - Technical Knowledge Languages Human Rights Ethics andIntegrity Sustainability Others Health andSafety Hourly HOURS OF TRAINING BY JOB LEVEL 11.7% Salary .5% Executives 87.9% professional careers. their strengthening and performance their proving im for tools to access free employees gives which TalentVitroPlatform, the have we trend, Mind this of ful self-learning. of amount the increased and technology and increasinglyaccessible methods learning made have media the in advances Constant industry trends, andothers. cialized technical aspects, update, new technologies, spe more to growth personal and rights, human ty, employees took at leastonecourse. had 4,862courses, and 100%of our At theclose of 2019,thePlatform - - - 1,733,186. investment of US$ employee,an with 2019 was 54 per hours provided in numberof training The average 35 ANNUAL REPORT 2019 EVALUATION BY JOB LEVEL underwent performance evaluations. In 2019,70%of our employees 19% Executives Employees 46% PERFORMANCE EVALUATIONS BY GENDER *Includes employees (salary) andexecutives Men 71% Women measuring productivity.measuring performancesults-focusedaction, while and individual recognizing re - and leadership analysis, opportunity and risk facilitatingdecision-making, while growth comprehensive employees’ boosts This are measured. dates and authorizes the plan and at the end of the period the results valireviews, boss immediate his strategy, business the with aligned function or area his for objectives performance establishing vidual indi procedureeach ofand Analysis),consiststhe ofPlanning which The other method is through our PADI system (Individual Performance ing our operational efficiency andannual results. Wehavethrough globallyis twomethods:one measur established ployees in Vitro. development and growth, is thethe evaluation professional of performance that is applied to em- to impulse and incentive Another PERFORMANCE EVALUATIONS 69% - - - 36 ANNUAL REPORT 2019 recognized employees. 16 outstanding projetcs and95 In 2019, there were 278ideas, stimulates andempowers our employees. recognizes, also but company the benefits only not This are recognized inanawards event. forout theirstand benefits that arethose evaluatedand receiveand initiativescolleagues.fromtheirve votes All theirimprovement projects, shareof details theirinitiati Weplatforminternal publish wherehavean participants identify thanks to their experience anddaily activities. can employees propose ideas for company’s continuous improvement that they the can which in proposals for call a of consists This employees. of inventiveness and creativity the encourage weprogram, Innspire our With PROGRAMNNSPIRE - 37 ANNUAL REPORT 2019 OUR PLANET communities we serve. harmony with theenvironment andthe necessary to operate andgrow in We work to create theconditions development. and projects that supportsustainable designs andimplements programs Environment andEnergy Policy, Vitro is why, supported by our Safety, Health preserving theenvironment, andthat We understand theimportance of 38 ANNUAL REPORT 2019 23% from ext of recy cled glasscame ernal suppliers. of theimportance of recycling among various groups. awareness raising and economy local the favoring ue centers.collection of chain createsas serve a This val fromceive nearglass communities our facilities, which Through our permanent glass recycling program, we re cess efficiency, energy savings and cost reductions. pro furnace, smelting the in materials raw of volume lowerarethe ofadvantagesreusingglass of the Some tive of reusing postindustrialglassas well. initia the apply States postconsumerUnited the in plants recycleand glass, Mexico in companies Vitro’s cesses andfrom external suppliers. pro internal our from gleaned waste) (glass cullet the use some virgin raw material, we also make the most of recyclable.we Although 100% is it that is which glass, of advantages greatest the of one of advantage taken has founding,Vitro its Since life. in indispensable and safe unique, it make that characteristic with products, arrayofextensive our in component main the is Glass GLASS RECYCLING ment andsustainablesocialpractices. environ - natural the laws, the with tent consis- policies and system management an environmental maintaining to mitted com - are we human; and energy nomic, eco- material, resources: all for caring of importance the of aware are Vitro at We GRI: 102-41,301-2,306-2 CIRCULAR ECONOMY in Mexico by 7%. recycling capacity windshield increased our In 2019 we - - - - - metric tons. 712,708 we recycled In 2019, 39 ANNUAL REPORT 2019 Non-recycled WASTE MANAGEMENT BY TYPE Hazardous Non-hazardous to take advantageof recyclable waste. ways and process, the in opportunity of areas identify correct helps training; separation of and and waste; es process assessments, includes ProgramManagement optimize their use. To do so, to our tryComprehensive we Waste and resources of value the understand We COMPREHENSIVE WASTEMANAGEMENT 2% 3% generation by 20%. We reduced our hazardous waste recycling. waste wassentto In 2019,93%of our Recycled 98% 97% - In addition to these metric, we fully metric, we comply these to with addition regu In and areas of opportunity for eachcompany. that measure standards and diagnose degrees international of conformity, by strengths governed certifications, are and which evaluations regular undergo We climate change actions. of transparency and reduction sion emis plans, control change, climate identifiedopportunities and regarding threats evaluates which (CDP), Program Disclosure Carbon the throughperformanceour report We also cy, environmental performance andcompetitiveness. environmentallaws, improvingwhile process efficien forcomplianceevaluated with be to forcompanies is purpose its and nature, in voluntary is program The Audit Program. Environmental National the of part are and Agency, Protection Environmental Federal the from tification Industrycer Clean have Mexicoalso Vitro’sin plants clients, and we voluntarily comply others with as well. by our audits as governing industry, our lations as well GRI: 305-1,305-2,305-5, CLIMATE CHANGE EMISSIONS AND

- 14001 certification. plants have ISO and chemical product 100% of our original - - - 42% CO Scope 1 2,438,611 tCO 2 e emissions Scope 2 2 e 58% 40 ANNUAL REPORT 2019 ENERGY CONSUMPTION BY SOURCE We alsoreduced our energy

19%

Natural Gas 2019 2018 2017 18% UNIT OF PRODUCTION GJ CONSUMED PER intensity by 8%. Electricity 1% Steam 7.6

8.14 8.22 Others 62% footprint by 6%. enabled us to reduce our carbon In 2019efficiency projects gramof renewable energy use. pro - a through use this mitigate to work We fuel. of types various use we consumers or clients with logistics through materials raw ofprocurement the from because is This sources. non-renewable from energy of amount substantial a consume we ture, Because of the nature of the products we manufac ects that reduce theoverall environmental footprint of our operations. EnergyWean haveManagementofenergySystemproj comprised savings - our processes more environmentally friendly. make to improvement continuous innovation inspires us Ourinterestin and GRI: 302-1,302-3,305-4, ENERGY EFFICIENCY - wind farm in Juchitán, Oaxaca. with renewable energy from a Mexico have beensupplied90% Since 2015,two of our plants in 41 ANNUAL REPORT 2019 OUR COMMUNITY win relationships withallour stakeholders. and communities. At Vitro, we believe in win- and innovative glasssolutions for our clients the power of collaboration to generate value Our missionisclear onthat point: we redefine employees andcommunities. persistence by thecompany together with its of chance. It istheresult of hard work and more thaneleven decadesisnot theproduct Vitro’s ability to endure andtranscend for 42 ANNUAL REPORT 2019 GRI: 102-12,413-1, 61,048 US$404,880 15% SOCIAL INVESTMENT BY AREA 10% 19% 10% beneficiaries direct 46% invested inthe community 81 Art andCulture and Health Humanitarian Assistance Education and Environment Community Development Vitro Family activities Volunteer

comunidad. las comunidades, con lafinalidaddehacer cambiospositivos ennuestra de donativos a organizaciones externas que llevan acabo proyectos con Con diversas acciones, pretendemos maximizar nuestro impacto a través locations where we operate. institutions, educational program support, charitable and other issues that are important and to the hospitals in needy the for assistance ters, disas natural by hurt areas to donations product and aid humanitarian tree-planting, like actions in participate we plants our of one every In around us. world the transform positively to help who citizens active become and ciples. Year after year, we join volunteer programs to be better neighbors as individuals, we at Vitro make an effort to act in keeping with our prin Based on values that guide our words and deeds both as a business and common end:the well-being of thecommunity. mentalorganizations, nonprofits and governments, all working toward a non-govern institutions, other with partnerships and synergies and lic, pub general the and families employees’ for workshops and courses spaces, public of restoration programs, volunteer with present, are we where communities the of development sustainable the for work We VOLUNTEER WORK

- - - - 43 ANNUAL REPORT 2019 in 2019: Mexico in reforestationthree challenges on Wetook Silvestre (OVIS) anditsNow! program. Vida Organización with alliance an through ronment, envi the for caring in interest active an take to ees employ- encourages campaign Vitro” “Naturally The NATURALLY VITRO Pollinizing Garden, Pollinizing Garden, + 1,400 species Mexico City +50 people 3 1

2 +100 + 300species Pollinizing Garden, +250 + 2,200species Mexico State Morelos, Toluca, Reforest Sierra García, NuevoLeón volunteers volunteers

- and others, sharing their time and their love with love their and those who needitmost. time their sharing others, and youthprograms, needy,the to supplies basic bringing and children suffering from serious illness, supporting visiting families like activities community in ticipate par and organize coworkers which five-dayduring campaign a is Giving, of Week the called event, The joy to various charitableinstitutionsandhospitals. little a and support bring States United the in vision Every year,employees of Vitro’s Automotive di - Glass WEEK OF GIVING for wildlife, mention justto a few. refuge a creates and oxygenproduces temperatures, tify if; it also mitigates greenhouse gases, reduces soil ulating a plot of ground with plants and trees to beau The benefits of reforestation go beyond simply repop In 2020, we worked onreinforcing our initiatives, aligning them under asingle volunteer schemeto designspecific targets andgoals that enableusto amplify our impact. - - - among other issues. crafts, and values morals, ethics, in courses through that ofpotential theirtheirvelop and fullest families encouraging activities, those the de lead to present to support their lentempowered who women85 of participation the with began year school 2019 The human potential development program. and training, advancement,comprehensive personal Personal,ProSuperaciónNacional (ANSPAC), A.C. a Asociación the sur of of part as residents neighborhoods as rounding well as daughters and wives WOMEN’S EMPOWERMENT VITRO FAMILY - - have benefited. Familythe Vitro 336 women in ofprogram this Sincestart the 44 ANNUAL REPORT 2019 chain--to promote community development. visors, aspoints of reference or partners inthe value together--asad- work we whom with allies strategic have we strategy, sustainability our with keeping In strengthen thesocialfabric. and well-being promote that programs and actions through us around community the on impact sitive po- a have to strives Vitrostakeholders, our to and our business to benefits environmentbrings ble that sustaina- a in operating of importance the Awareof STRATEGIC ALLIES like picnics,drawing contests andothers. activates outdoor the in part and took also facilities They company. processes, products, our about learn could they where plants, our and to families by employees their visits included activities These attract and retain talent. ment, promoting peace in the workplace and helping commit- generating life, work employees’ for ment ensureto thatfamiliesprovide supportivea environ - activities ofvariety a on workedplants our 2019, In FAMILY EVENTS and their families. attendance of 1,600employees +35 activities withan average

of charitable institutions. andsupport activities al- truistic in participate to parents and students encourage also administrators and teachers events; civic and cultural ting, spor in recognition earn and participate students school, high through preschool From best education. the receive will children their know option this choose independently who Employees operated. and public, the to open all schools, children. employee for schools tion four has Today it instruc basic to alternative an as created was that aninstitution is (FEAC) A.C. Educativa, Formación partnerships with educational institutions. or scholarships through members family other and grams, pro- we also provide incentives education to support children and training employee our Besides FORMACIÓN EDUCATIVA, A.C. (FEAC) - school. primary schoolandhigh schools: preschool, distributed across four faculty of 70teachers, students enrolled, anda institution has1,290 school year, the For the2019-2020 - 45 ANNUAL REPORT 2019 66,291 and nature. themselves enjoy to public general the and families their and employeesfor Vitro place a provide which types of bushes that populate this recreational space, other and oak dark and species white pine, Mexican the like flora has also It turkey. wild and dpecker, woo- acorn jay, gray-breasted fox, red-tailed bear, black squirrel, grey deer, fauna--white-tailed of cies spe - various to home is area natural protected This Mexico. lled Vitro Parque El Manzano, located in Nuevo León, ca- fourdecades, past company forthe bythe owed in the care we have given to a 585-hectare woodland Our interest in preserving the environment is evident VITRO PARQUE EL MANZANO visitors from Vit rovisitors employees andtheir families http://www.vitroparqueelmanzano.com/ members of the general public 18,490 information, visit: For more services through a workshop andsummer courses. groups and the general public, along with educational school to visits guided offers Museum The art. of ks wor glass create true to applications and techniques by Mexican createdand foreign artists who have pieces used various displays museum the galleries, its In rious spaces. va- its in processes and origins its explaining glass, America, the museum encourages an appreciation for toryMexico.ofin glass ALatin in pioneerofkind its his- the disseminate and revive,preserve to us pose pur whose glass,” Mexican of home “the Museum, Glass the created have to proud are manufacturing we companies, glass leading world’s the of one As THE GLASSMUSEUM - - 3,355 5,718 http://www. museodelvidrio.com/ information, visit: museum visitors events outside theMuseum people participating in For more 46 ANNUAL REPORT 2019 environmental conservation spaces. 1,302 protected species in 55,081 hectares under conservation. environmental workshops. and fauna, and flora wild of use wildlife, regulations, ces are consulting on environmental responsibility and servi its Among restoration. and forestry of on matters services of consulting a variety offers also OVIS • • • flora and fauna, including: conserving forprojects and programsof number a has OVIS future andconservation of ecosystems and wildlife species. the ensure to created organization an (OVIS), A.C.Silvestre, Vida Organización of members active and founders are We ORGANIZACIÓN VIDA SILVESTRE, A.C. (OVIS) Restoration of mangroves and wetlands. wolf, and others. grey Mexican bear, black deer, white-tailed sheep, ghorn bi- eagle, the golden like species endangered Protecting the monarch butterfly Multinational projects for protecting pollinizing species like - international projects. for national and US$1,110,172 organization received In 2019the 47 ANNUAL REPORT 2019 OUR BUSINESS 48 ANNUAL REPORT 2019 among other applications. oil industry, road de-icingandinagriculture, water treatment, pharmaceuticals, food, inthe chloride for useinglassmaking,detergents, bicarbonate, sodiumchlorideandcalcium It alsoproduces sodiumcarbonate, sodium meet theexacting demands of every client. technological research center, enablingitto developing added-value products through its glass, thedivisionleadsindustry in marketing, distributingandinstalling segments. In addition to making,processing, the originalequipment andspare parts automotive industries, for thelatter in both of float glass for the construction and leader inthemanufacture andprocessing The Flat Glass businessunitisa worldwide ARCHITECTURAL GLASS, AUTOMOTIVE GLASS AND CHEMICALS FLAT GLASS 49 ANNUAL REPORT 2019 to grow andstrengthen thebusinessunit. opportunities of year a it made also employees our of efforts tive Glass made the year a challenging one. But thetalent and areales in ArchitecturalGlass operatingand areas in Automo both segments. This, combined with a restructuring of the sa chitectural and automotive glass industries pressured prices in businesses: componentintense competition and excess capacity its in the ar and Glass Flat for year complex a was 2019 BUSINESS OVERVIEW - - - 50 ANNUAL REPORT 2019 that is a slightly less transparent alternative to our to alternative transparent less slightly a is that Solbarban We also completed our launch of the Acuity In-Full index (OTIF) across theentire logistical process. United States, where we began measuring the On-Time the in and Mexico in both service customerimproved substantially we and low, all-time an reached issues ty the quali for returns across customer of percentage The progress board. showed results operating Our in 2020 we planto move onto three shifts. 2019 we upped production In to start a second shift, and sizes. larger-than-standard in categories glass our of all produce Texascan Falls, Wichita in factory today this and us, behind is curve learning expected the that now speed up picked has line coater jumbo The surements. mea residential with windows and doors out turn to line Mexicotempering in planthigh-speed a up set we LeónNuevo García, our year.Atlast of Septemberby capacityof 100% Pennsylvaniaat plant,wewere back Following the repair and restart of line 2 at our Carlisle, ® coating. This glass is an ultra-clear glass an ultra-clear is glass This coating. Architectural ® line with Glass - - premium product, Starphireproduct, premium sales volumeby 5%from thepreceding year. down in the entire construction industry, lowering our slow general a to led economy Mexican stagnant A were pressured downward andmargins squeezed. were stable, but less so in the second half, when prices In the first half of the year, market conditions in Canada of line2after repairs following the2017fire. re-startthe and coatline jumbo the on curve learning ally, early in the year the business was dealing with the toglass Acuity clear simple from projects migrate to architects ables this type of glass at an affordable price point that en that point affordable price an at glass of type this using projects new for specifications begun have we We anticipategood a launch. this to response date To a product with amore neutral appearance. avoid the green cast typical of traditional glass and use take place, was hampered by an over-saturation of product over-saturation which put heavy pressure an on prices. Addition by hampered was place, take sales our of bulk the where is which market, US The ® . ® , which means architects means which , - - - 51 ANNUAL REPORT 2019 becoming their commercial partners. and needs their presenceanticipating byourdefend to intend we so imity with customers. Markets shrink and competition grows tougher, greater and proxcommunication fluid moreencourage to and talent people’s our optimize and develop to is idea The markets. industrial and residential the ofcoverage team another assigning and segment commercial the on focus close market a creating each for teams with In 2019 we decided to strengthen our sales area in the United States, decisions madefor thesalesarea, will helpusface thechallenges. the and acquisition, the since achieved have we integration the that Vitro Architectural Glass continues to grow stronger. We are confident AMID ADVERSITY, STRATEGIC SOLUTIONS - segment. Supply to this company doors will come residential mainly from the the new tem in ODL with agreements some inked also We market. our in downturnbroad-based the despite segment this in growsales to us enabling States,United the in commercialclientlargest second ties commercial restored agreement with multi-year the a Trulite, including clients, major States with United the in restructuring thesales team positive: immediately was actions these to response The other aspectsthat guarantee client satisfaction and project success. products according to project needs, supporting them in logistics and value-added selecting in clients assist can which team, specification In Mexico, we created a National Architectural Manager (NAM) project yearsales of in solar control coated glass. record a us brought team Mexican our using products value-added of specification and promotion on focus increased our Meanwhile, furnacepering inGarcía, Nuevo León. - 52 ANNUAL REPORT 2019 f sn Solarban using of potential economic and energy-saving the prove To LOW-EMISSIVITY GLASS TECHNICAL STUDY that supportsustainable architecture. erations to improve our results while creating products op- and processes in partnerships and ideas new sue ofourcoreinnovation,one pur is Because we values RESPONSIBILITY ENVIRONMENTAL INNOVATION AND • • • following recognitions and certifications: the earned business Glass Architectural the 2019, In sacrificing beauty or harmony inthedesign. without savings energy long-term drive and tioning, air condi- and lighting artificial on dependence duce re- energy yield, optimize to buildings in used be can Vitroarray an ofproductsArchitecturalthat has Glass CLIENTS PROCESSES, CERTAINTY FOR PRODUCTS AND RELIABLE SUSTAINABLE FUTURE FOR AVISION efficiency (Fresno Plant) mental Protection Agency (EPA) for superior energy the Environ- from Certification STAR® ENERGY Re-certificationn BASC/C-TPAT /ISO28000 Re-certification ISO9001:2015. ® o-msiiy o lwe ad so- and low-e) (or low-emissivity - • • the future. and today for buildings in glazing energy-efficient ing scenarios where and importanceexplainwethe can of us- forums various in participate We change. mate cli- to due facing is planet our problems the garding re- stakeholders our among awareness raising of and aware being of importance the of aware well is Vitro DEVELOPMENT FORUMS EFFICIENCYSUSTAINABLE AND PARTICIPATION INENERGY people. 110 terrey,moreofthan audience Nuevoan León, to Mon - in another and City Mexico in one events, two in presented and online published were results The GHG emissionadvantages of each. and energy economic, the demonstrating conditions, buildings in nine cities of 15-storyMexico with various weather for prototype building the in glass tectural archi- of types various using of impact economic and energy the analyze to was study the of purpose The research firm. independent an Engineering, 14 Group by study cal techni- a sponsoredlar-control we glass, architectural Greenbuild Mexico 2019 Energy Efficient Building on Collaboration National-Subnational for Forum ganized by the US Green Building Council (USGBC) Oneof majorthe worldwideevents or field, this in tion onenergy efficient building. collaborafoster- to and building Mexican in ciency effi- energy improve to efforts focus to ernments should be shared by Mexico’s federal and local gov- that priorities three the identify to is purpose The - • velopment Agenda DeSustainable- Forum of2020 Challenges the on high percentage of energy supply consumed in the the in percentageconsumedenergyof supplyhigh In this forum, Vitro Architectural Glass spoke on the vices andtechnologies. ser products, construction sustainable innovative about experts the from learning of purpose forthe companies, 150 than representing more countries, fessional experts in ecological constructionfrom 14 togetherproSUMe,involving 350 more with - than - this impact. can make them part of the solution and help reduce decisions right the stressed howmaking also It ing. global warn- cause that emissions forofGHG 70% are responsible they how and cities, large world’s 53 ANNUAL REPORT 2019 mate-resilient societies. cli low-carbon, to transition the accelerate to order in level, local a on power actors key and articulate to intended (WWF) Fund Wildlife World the ini of tiative aglobal are (ACA) Action Climate for Alliances AREA CLIMATE CHANGE ALLIANCE OFSIGNING MONTERREYTHE METROPOLITAN Building Council (USGBC). is and Green US the by partner Education an recognizedas (WGBC) Council Building Green World the before body representative Mexico’s official is SUMe Presidentforas 2019-2021. Vice serve to appointed was employees our of one as directors, of board the on represented were we 2019 in and A.C.), México, para (Sustainability SUMe of members active Weare SUME: A REAFFIRMING,SUPPORTIVE PRESENCE being present will help usbuildabetter world. and solutions joint out seeking partnerships, creating that convinced are we why is That future. the in live tential ofglass to improve the way we move, build and Our vision is that together we can discover the full po- THE FUTURE SHARED SOLUTIONS, VISION FOR - - with thesupply of bird-friendly glass. forest environment; it also supports the entire project conservation of bird species housed in a tropical rain- the to dedicated a space Aviary, National Pittsburgh Vitro Architectural Glass is one of the sponsors of the NATIONALPITTSBURGH AVIARY ient, low-carbon buildings. resil efficient, of operation and construction design, the promotes agreement The Mx). (GABC Mexico in Construction and Buildingsfor Alliance Global the of an agreement on low-carbon sustainable building as part signed Glass Architectural Vitro academics, and International Energy groups private the Agency (IEA), GermanCorporation- for International Cooperation), Zusammenarbeit Internationale für Gesellschaft sche Concanaco,(Deut UN, GIZ Conuee,the ALENER, as such organizations, various of involvement the With BUILDING DECLARATION ONLOW-CARBON SUSTAINABLE action tomake more efficient buildingsurfaces. collective of portfolio a create to agencies, municipal and regional governments, academe, state enterprise, society, private civil of representatives of ment agree and participation the with areas metropolitan largest country’s the of three in alliances began We - - - 54 ANNUAL REPORT 2019 motive glass. auto our recognition quality of earned the for having BMW, and Audi, Benz, Mercedeslike segment, mium pre the in clients serves plant progress. This nificant sig showed Poland in plant our of performance The shield lineto serve theoriginalequipment market. newwind a Kentucky.Berea,launched in Weryalso facto from a newplant production this of ofthe part working at high capacity levels. is In 2019 market,we transferred parts spare the for components produces The new plant we set up in García, Nuevo León, which courseto business. and beasustainable the stay to commitment and ourworkers’ enthusiasm dampened not have conditions difficult the but do, to relocatedand justed infrastructure. There much still is tegration of recently acquired businesses. We have ad In our operations, however, we continued with the in amid growing competition. components automotive on downward prices driving and manufacturers glass as well as plants assembly al glob for idle capacity leaving 4%, by shrank market, main our industry, automotive The VitroAutomotriz. A number of factors marked 2019 as a difficult year for Automotive Glass ------On the other hand, productivity lagged at some inte some at lagged productivity hand, other the On Because of these reorganizations and production ad production and reorganizations these of Because those facilities. at operations upgrading and updating in invest to us led that situation a time, right the at applied been not gratedplants whereappropriatethe maintenancehad ket in2020. mar parts the spare in production affecting continue to it expect we but situation, the address to place in put immediately were plans Contingency continuity. operating affected which breakdown, irreparable an suffered City Mexico in plants windshield our of one at equipment of piece a December in Furthermore, pects. days, 40 negativea had which effect among sales, on other as for work stopped clients, main our of one SeptemberIn2019, workers MotorsGeneral(GM), at operations to bemore stable. expect we 2020 in and problems, key the correcting wereresolved the during year. Today, areweto close which Mexico, in one and States United the in plants the of one at delays some experienced we justments, - - - - 55 ANNUAL REPORT 2019 Honda, Nissan, Toyota, Volkswagen andHyundai. Ford, are 2020 in supplying be will we platforms whose clients the of Some lac CTS,Cadillac CadillacXT7, ATS, andothers. Gladiator, Nissan Versa, Nissan Sentra, Toyota Corolla, and parts for the Cadil MKC, Jeep Lincoln Lincoln Explorer, Aviator, Ford 3, Series platforms--BMW important some of launch the present in 2019, glass was Vitroautomotive In flection of this. clear re a is patronage ongoing their clients; offered its always has it service and quality the ofresult of powerthe Vitrostayingmarket is AutomotrizThe QUALITY AND SERVICE: A COMBINATION THAT BUILDS TRUST ations for our business. creating interesting situ areautonomysystems enhanced and cars electric in gaining are technologies New that (SUVs). Utility Vehicles Sport like market, platforms the as certain in presence as well now, until up active less have that been clients on efforts wefocused conditions, adverse these offset To opportunities inmore specialized markets. a drop in demand for new automobiles. This obligates us to probe other growth In parallel, the uncertainty going on in Mexico and Latin America has prompted prices even at thesacrifice of margins. their dropped product, excess unload to eager competitors, our of number a and plants, assembly at capacity idle caused contraction market the because pressure pricing encounteredmarket,significant we equipment original the In served primarily by importsfrom China. currently States, United the in parts spare in share market our increasing on Dallas, in center distribution focused a Texas, opened we situation this on ize opportunity for created an Vitro. which China, from glass tomotive capital To au Market on weredynamics last year.mixedtariffs States raisedUnited The STRATEGIES FOR CAPITALIZING ONOPPORTUNITIES - - - - - our business. situations for interesting creating systems are autonomy and enhanced in electric cars technologies New 56 ANNUAL REPORT 2019 employees environment for all the about creating a cohesive Vitro Automotrizcares • • • • • • • • • • • • • • and certifications: recognitions following the earned division Automotive the 2019, In added value intheautomotive glassitproduces. industryrequirements,meets theirneeds, places all and meet to ents es, which is why Vitro Automotive makes sure it works closely with cli involvesMakingautomobile an qualityexacting security and process CERTAINTY FOR CLIENTS PRODUCTS ANDPROCESSES, SUSTAINABLE FUTURE FOR AVISION 1@ Companies BASC/C-TPAT/ISORecertification 2800 ISO 28000:2007 Nissan Distinction - Application of technology inmanufacturing Environmental Leadership for Competitiveness Program Expansión Super Empresas deMéxico CNCA Certification VDA 6.0Certification Clean Industry Certification ISO 14001Certification IATF-16949 ISO-TS-16949 ISO 9001/2015Certification Nuevo León Recognition for Greenhouse Gas Mitigation in 2012 - - 57 ANNUAL REPORT 2019 critical thought. and creative for capacity the also but field the in grounding onlynotbystudentsrock-solid them educate giving technical to Wrocławis purpose Technical Poland,whose Universityin the Wrocławliated with Centre of Technology Transferofthe affi is which Club ManagersQuality the of members Weare camps andChristmasgift-giving. nal areas, or events like Family Day, coloring contests, summer to invitewethem our visit comeplants,together recreatioin which in families, employee for year the of course the over activities holding is life of quality promote we way Another ks, Pizza Day, andothers. liketournamentsthroughsoccer, golfsports and par to visits employees our among camaraderie of spirit a encourageWe communitiesand the around them. vironmentsforofcohesion social employees, its theirfamilies creating involved en in and about concerned is business tive Regardlessthe Vitroworld,of the Automowherethey arein QUALITY OF LIFEFOR ALL: A COMMON GOAL many of the world’s leadingautomotive manufacturers. the automotive industry and have earned us the preference of otherand features make Vitrosynonymous excellencewith in king for smooth incorporation into the final assembly line. This pac final its developing to components and glass the signing client. Our engineers work hand-in hand with clients from de The glass made by Vitro Automotive is designed by and for the CLIENT FOR THE COMPREHENSIVE SERVICE ------lets us support them in areas capa whereareparticularly in we them support us lets and relationships strengthens usinclose communities, our with contact keep These activities. community in participate and donations make we which in events volunteer have We VOLUNTEERWORK: THETIESTHAT BIND or to helpprevent them. accidents in assist to use can they to students, giving them knowledge workshop first-aid a give to school land volunteered at a local technical Po in factory our from staff health and Security workshop. aid First talk aboutthecausesthat matter them. to and volunteers, as work donate, to chance a them gives and together employees in all the offices or branches of a company paign, and our coworkers presented gifts. The company brings cam the support to USD30,000 than more donated ployees the in participated We burgh Food Bank. Pitts the to supplies food and cash in USD22,000 around donated employees when Annual Holiday Food Drive, important of which were: most the activities, volunteer 30 than more had we 2019 In ble of doingso. , in which em which United Wayin Campaign, - activities. in community and participate make donations in which we volunteer events We have

- - - - 58 ANNUAL REPORT 2019 • • • • business was asfollows: by sales of breakdown The 2019. to 2018 from 6% grew sales Total company factors. various on pends de- performance whose markets, of number a tend at- Álcali del Industria up make that businesses The our industry andto standupagainstthecompetition. for levels suitable profitability defend at to efforts ble redou to us prompted This production. reduced and costs increased plant the at failuresMaintenance ity. the second half of the year that affected our productiv in challenges there some were side, operating the On by 10%compared to2108. tial financial plan, we succeeded in increasing EBITDA evenourthough results for fell2019 of short our ini and Nevertheless, stronger. even was competition and growth, evident without but stable, were serve we segments market The businesses. various our in Forde last yearIndustriaofÁlcali, challenges full was INDUSTRIADEL ÁLCALI ciiy eoee prily n h scn half of the second in partially recovered activity Oil segment: Reported a 4.8% YoY growth, because levels. 2018 at steady held market This segment: Food formula to due changes, we reported a12.8% decline. (P&G) Gamble & Procter from demand in contraction a of Because Detergents: Pavisa andGlass &Glass). ous markets, sales rose 12.1% (Crisa Libbey, Grupo Glasssegment: growinga With ofuse in glass vari - - - - sell more sodiumcarbonate. had no such issues, but we stopped making product to Bicarbonate Sodium from2018. remainingunchanged expected, than less 5% produced and 2019, in culties diffi operating into ran plant Carbonate Sodium The the others, affecting overall productivity. are integrated, so failures in one plant ultimately impact Because of the nature of our operations, our processes • sons of 2018-2019. sea- winter the in results average measures ment seg year. This previous the to similar and timates De-icing segment. Demand was consistent with es- (WTI) crude, which affected independent drillers. TexasWestIntermediateof price the in drop a to 2019. In the United States growth was modest due - - Quality: Thegoalimproveto is qualitythe of prodthe relation to presentations and/or new launches. to anticipatetheir needs and fulfill their expectations in Customer service: we increased proximity to our clients to full satisfaction and consolidation of our businesses. have designed and implemented strategies with an eye Our clients are at the heart of everything we do, so we STRATEGIC ACTIONS above theprevious year. 6% but budget under 6% in came we and unchanged, largely were conditions Chloride, Calcium For 2018. in than reached higher 3% still production was it though plant, budget, of 93% Chloride Sodium the In ply of material to our client. ucts and services we offer and guarantee a timely sup - - increase themcompared totheprevious year. even and levels profitability maintain us helped trol, All of these actions, combined with strict budget con- results, particularly in thecalciumchlorideline. added nine new clients to our portfolio with very good recordcompressor,time. in We gas hydrator and the likeequipment, major some Wesuccessfullyinstalled businesses inMexico. various in share market our defended We America. particularly in the to exports United States and South plant, Chloride Calcium the of out sales and duction pro- strengthen us helped strategies these Applying business. um chloride, and bolster the operating capacity of this calci in mainly product, more Export markets: New - 59 ANNUAL REPORT 2019 We also used various internal channels to disseminate ries and made sure they were responsibly disposed of. batte- and waste PET,electronic collected we which ourin facilities, a up started we recycling in campaign As part of our effort to build environmental awareness ENVIRONMENTAL AWARENESS and eachof them we cameout with excellent results -Bayer, Pochteca, Avantor, and Brentag, among others, Furthermore, we were audited by some of our clients- well asCleanIndustry Certification. as certifications, ISO our all maintained we 2019, In CLIENTS PROCESSES, CERTAINTY FOR PRODUCTS AND RELIABLE SUSTAINABLE FUTURE FOR AVISION participated upthe insetting garden. well as community members and government officials, More100 as theirfamilies,Vitrothan employeesand talled inoneof our neighboringcommunities. world, for example with the pollinizing garden we ins- and excitement in offering future generations a better interest our society with share to opportunity an us Our “Naturalmente Vitro” reforestation program gives ACTIONSSHARED amount of waste generated. the reduces which components, used the with made ses they were repaired and in others new pieces were ca- some production. In our in wereused that pieces and materials of repair and recovery the is example One process. our in use we materials the recovering for have projects we use, resource our optimize To CIRCULAR ECONOMY sented arecognitionto everyone whoparticipated. pre- and recycling of benefits the about information 60 ANNUAL REPORT 2019 The EBITDA of theFlat Glass divisionin2019 was USD USD totaled they when 2,001 million. 2018, in than less percent 2.1% Consolidated sales totaled US$1,960millionat year-end, chitectural Glass, XXXXXXX. tion of Vitro Automotive Glass, a less favorable price mix in Ar reorganiza the and plants, among capacity production of tion reloca the to due costs logistical highercompany, the Within factors that hampered profitability inthisbusiness. higherand energy Mexico.in prices ofaresome These the just September, in GM at a strike by affected were sales tomotive downward. In Mexico the construction industry shrank and au prices squeezed competitors, our among capacity production architecturalautomotiveand industries, together growingthe with both in retraction A results. projected our reaching from on the results of theFlat Glass business, negatively which prevented us weighed factors internal and external Various million, 2 3.6 percent lessthanin2018. 2019 Results 233 - - - -

that path. on continue will we 2020 in and facilities, and incut equipment ting-edge have invested we years four past the In operations. grading the In Automotive division, weGlass continue will reinforcing up and to beableto face thedifficult years ahead. and, in keeping with Vitro values, we will maintain operating excellence Mexico and the United States, exercise strict cost and expense control, in facilities new our of most the make resources, all optimize Wewill dence that we are their bestchoice. confi and security the them offer thus and process the throughout clients accompany will we team specification project our With glass. ed market in the industry and further promote the use of added-value The strategy for Mexico will be to pave the way for a higher value-add projects. close to clients and reinforce the use of our to specialty stay products in their exploit we will which however, advantages, competitive has Vitro market. contested hotly and mature a is glass, added-value of buyer big a is which industry, construction the States, United the In of our employees. ents in every project, and above all the cli commitment and specialization our strategies, alongside work to us commercial enable that experience crystal-clear and know-how operations, our in technology have what is needed to defend and resume our position: cutting-edge a further restriction, with an increasing number of competitors. Butwe At Vitro Architectural marketand Glass,difficult expect we conditions pared for when themarkets turnupagain. will have been worth it, because we will be betterpositioned and pre costwill more others, than but weknow ourall end the thatin efforts Some confident, however, actions taking. we and strategies are the in and markets will grow increasingly shrink, competitive and aggressive. to continue We are will participates business Glass Flat the which in industries The again. once challenging be to likely is ahead year The FUTURE 2020 OUTLOOK: A VISION FOR THE ------we know we canplace our products competitively. ofourbecause proximityclients, ourfamiliarityand so to them, with market our for the on option best the are We that we confident are our bolster commercial position capacity, and thus improve of operating 100% and financial to results. production increase to are goals our 2020 For business. this in key profitability are and Productivity advantage of industries with evident growth potential. portunities to exploit and to diversify our client portfolio, and to op take business new for watch to continue will We in. participate we segments the in choice bet the being continue to and competitive remain to strive Wewill clear: is Álcali del Industria for outlook The the market technology is demanding, newand this should the help us improve include our results. that products push to opportunity an Although we do not expect volume to grow this coming year, we see ness from variables beyond our control. busi profitability the the of shielding while budget, within expenses We will intensify resource optimization programs and keep costs and European market. that in addition to the United States and Canada it can also serve the Weproducingbe also morewill ofvolumeout so ourChina, in plant tems (ADAS) technology. Sys- Assistance Driver Advanced and cars electric high-performance of for windshields the supply in effectively compete to us able directedtoward luxurythe segment. Thisnew Mexicoin line en- will Poland, in plant our in installed we what to comparable technology with Mexico in windshields of line another launch will we 2020 In try, with advanced technology. indus- the manufacturers in leading the of one as division’sposition the maintain Automotive Glass and strengthenfacilities ourto ment invest - million USD60 Companya Februaryauthorizedthe In 2019, electric vehicles. positionin our and hybridlike higher-techSUVsmodels likesegmentsgrowingand on buttressing focus will strategies Our novation. in- of forefront the at business the keeping on firmly work will We - - 61 ANNUAL REPORT 2019 CONTAINERS various industries. services, equipment andautomation for container industry andoffers engineering machinery andequipment for theglass the pharmaceutical segment. It alsomakes perfumes andtoiletry industriesas well as containers that are usedinthecosmetics, produces highly sophisticated andaesthetic hygiene controls, theContainers businessunit edge technology andstrictquality, safety and than 110 years of experience. With cutting- service excellence accumulated over more Vitro containers are backed by quality and 62 ANNUAL REPORT 2019 TRANSCEND PROACTIVITY: TOOLS TO OPERATINGFLEXIBILITY AND ly affects our clients andtherefore Containers. markets shrink, casing a chain reaction that negative- economythe and not, is it panyand when advances, comgrowing,- the and stable my,regionis the when econo any - in Mexico. As including Latin America, in ofNotemost ourthat company’s activity takes place pared to theprevious year. while financial results were also basically stable com- area, thefinishing in and improved flat levels tivity produc kept we discipline, administrative and tional opera- adaptation, forcapacityteam’s human our to less a good year for the Containers business. Thanks neverthe- was 2019 but America, Latin and Mexico in uncertain and volatile generally were Conditions 2019 OVERVIEW to unexpected changes in demand and take the chal- of the business and our people allowed us to respond the cost impact. The resilience and competitiveness productivity projects order savings in and mitigate to expense reduction and control measures, focusing on The response of our personnel was swift, stepping up take more and time to submitpurchase orders. volume less buy to tended they because us, affected directly This businesses. their panding and ex investing about cautious clients made and serve we markets the destabilized economy, weak a and changes, tariff over jitters countries, several in administrations government new Transitions toward - - vision overall. affected sales of the Container di- thus and business this in traction the country--which caused a con - in products pharmaceutical of er buy- largest agencies--the health public for policies procurement in modifications brought administration presidential in changeover the 2019, In Mexico. in supplier cal lo- a mainly are we segment pharmaceutical the In two of our top markets, grew compared to 2018. Sales of containers for both perfumes and cosmetics, margins. narrows effect latter this although currency, local in billing did as sharply, rose volume Brazil in stability; in- market and fluctuations exchange-rate of cause be - decline modest a experienced segment perfume Peru, Colombia,In Argentina, and Chile Ecuador, the decisions to wind down inventories. off sharply due to weak economic activity and clients’ Mexico, perfume, inpharmaceuticals and beverages while fell well; fairly grew which fresheners, air and treatments skincare, in activity vigorous saw States United The region. geographic the to according ied marketcosmetics and var perfume the trendin The of thistype. keyconfrontingbeen adversityto havecommitment we employees’our and strategiesour but alone, We know arenot Mexico. in competitors of presence growing the and costs energy electrical in increase the were year last faced we challenges other Two quality to clients. and innovation offer to and launches, and products new sales, achieve to chance a proactivelylenges as including Mexico. in Latin America, activity takes place of our company’s Note that most - 63 ANNUAL REPORT 2019 pillars: strategy, Molded for 2025,basedonthefollowing In 2020 we will begin working onanew business automation, digitalization, andsocial responsibility. far, and we have also been paying special so attention to excellent been have results The growth. graphic andgeo innovation, competitiveness, generation, tegic Plan, which consists of strategies for volume In recent years we have been pursuing our 2020 Stra SOLID STRATEGIES Sustainability Added value Competitiveness Premium liqueurs Innovation Growth - - office in Brazil reported good performance, and succeeded in grow in every competitiveness sales ofboosting area, our idea the With ger; in2019 theairfresheners segment saw significant growth. products, bath soaps and candles, which have been growing stron Anothersegment recentlyhaveexploringwe been home been has is agrowing area with opportunities we cancapitalize on. the ability and equipment necessary to serve this niche. We think it glass. quality has Vitro highest the bottles of sophisticated clusive, a is segment that is it very similar because to perfumes, involving prospects, the design strongof ex see we where market, liqueurs premium the into venturing been have we years two past Forthe ing and updating itself, and one of our priorities is to have state-of- moderniz constantly is division Container the whyis quality. That and confidence efficiency, greater with expected, than better do OurOperating Excellence that means Vitrovalue always try to will growing andservingtheregional market. continue to is idea currency.The local in country that in sales ing technology machines with cutting-edge bought four new ISmolding In 2019 the division - - - - In 2019 the division bought four new IS molding machines with cut ten new clients who commissioned usto develop their containers. of patronage the us earned containers new our of prestige the and The combination of experience, responsibility, commercial strategies nues from theperfumebusiness. sales of new products accounted for 35% of total consolidated reve dollar that fact the in confirmed is company’ssuccess,which the to For theContainer division,livingand applying our values isessential our clients outsideof Mexico. equipment for packing our products to ensure they arrive safely with acquiredFinally, we clients. our from demand the meet and market the from requirements exacting increasingly to respond to chines ma finishing latest-generation two and machines, inspection matic remaining three will be the installed in 2020. and We installed also bought three been auto already has first The technology. ting-edge step further one go to but needs clients’ meet only not to technology the-Art . - - - - 64 ANNUAL REPORT 2019 SUSTAINABLE FUTURE FOR AVISION GROWING TOGETHER In 2019, the Container business obtained the following recogni tifications for our Container productsand processes. cer recognitions and earnings in together bring employeesour what are goals crystal-clear and commitment total Dedication, PROCESSES, CERTAINTY FOR CLIENTS PRODUCTS AND RELIABLE ihn u Uino aets rga w gnrt favorable generate conditions to integrate people we with disabilities into program our Talentos workforce. Uniendo our Within our workforce. into integrated In were disabilities initiatives. with and people thirty-nine programs 2019, inclusion have we why is which treatment, equal and defend respect to is ofVitro’s Oneduties JOINING TALENTS, • • • • • • • tions and certifications: ANSPAC Center Recognition Belcorp Quality Excellence Gilberto Rincón Gallardo Distinction 2019-2021 Family Responsible Company Distinction 2019 Testimonial as Center for Peace and Development Clean Industry Recertification Recertification ISO9001:2015

- - employees’ specialization. develop to order in work, start they time the from Plan Career and a Life on focused theoretical, is 30% and practical is 70% methodology: learning 70-30 a on based systemis trainingThe knowledge andapply themtopractical experience onthejob. manufacturing acquireto standardized containerthem theoreticalenables phases, which glass the of each in business our of employees specializing for responsible is University Glass The provement inour processes andproducts. im continuous forworking employeeswhile our of growth the In line with our business philosophy and strategy, we encourage KEYS TOFUTURE THE COMPREHENSIVE DEVELOPMENT: IMPROVEMENTCONTINUOUS AND so; duringtheprevious took period30people thecourse. in Mexican Sign Language for all our employees who wish to do FamilyofDevelopment)Toluca, offer classes we through which In addition, we have an agreement with the DIF system (Integral paigns related with diversiy andinclusion. cam awareness by accompanied employees, our of needs the on adaptation based of the plants is our activities these Among part of our work force 39 employees with disability are Glass University in2019 2,000 employees enrolled inthe - - 65 ANNUAL REPORT 2019 students

projects received competing components, andtheusers’ taste for theproduct. its and of glass integration feasibility, ergonomics, finishes, ativity, Proposals are evaluated according to their concept, aesthetics, cre industries. other and liqueurs premium pharmaceutical, perfume, cosmetics, various universities to submit ideas for containers to be used in the from students invites Contest University Container Perfume The of thatthe Perfume isthe Container Contest. proof stakeholders, and employees our among inventiveness and creativity support to ways different exploring continually are We BETS ON THE FUTURE INNOVATION THAT and Colombia Mexico, Argentina 57 universities in

- 66 ANNUAL REPORT 2019 water used in 2019. 7575 m less well water use andhave a smaller water footprint. we meaning plants, treatment wastewater four have we water, fresh of consumption Toreduce paign inoneof thefurnaces. The target is to consumer at least 20% cullet per cam glass. the of color and purity the to with attention special quality, product affecting without process the in glass post-consumer of use maximizing on cused fo are efforts our recyclable, 100% is glass Because ment to theenvironment. materials raw is transcendental for and our results resources and commit of use optimum business, our In SUSTAINABILITY SYNONYMOUS WITH RESOURCE OPTIMIZATION, 3 of treated - - - • • • of four pillars: consists that program wellness a has Containers monitorthe healthand wellness of our humancapital. programshas initiatives and to evaluate, preserve and forprimaryconcern a it been alwaysVitro,so has ees employ our for development and wellness Holistic WELLNESS COMPREHENSIVE EMPLOYEE nition from the company. the established goal, at which point they earn a recog Employees undergo biweekly tracking until they reach • Physical evaluation: creation of personalized routines trition plans. nu- and diet individualized evaluation: Nutritional prehensive health assessment. for com- checkup medical evaluation: Diagnostic tors that may leadtounhealthy eating habits. fac Emotionalemotional the identifies counseling: - - - 67 ANNUAL REPORT 2019 tion segment: to invest inand strengthen itsbusiness revealsforopportunityThisFAMA an automa - the in gineering Services andSmelting. up of10% throughsales revenues from made Automation, En- industry this 2019 In clients. our as iaries subsid of Vitro support the with tooling, and tions solu- automation ofsupplier a as strength gained we segments, glass architectural and automotive the In increasingly achieve high efficiency levels. clients help can than supplier a strategic as industry the to commitment our tifies for This machines. NextGen4.0 first the delivered which business, Machinery the in sales in rise 22.3% expectations, grew sales 2.6% over a to thanks 2018, our to up come not did financial results the Although last year camefrom thecontainer(?) industry). risk of a high portfolio the concentration (90% mitigates of our which sales services, engineering and parts spare Machines, IS for clients new certifying and ing commercial effortscontainer the in market, prospect solid our continued we 2019 in intense, is industry manufacturing machine the in competition Although which we in participate. segments market different the to according ture struc our organizational consolidating and petitive, processkeeping levelsservicecomwhile quality - and manufacturing aslimmed-down through absorption cost thorough more a towardWeworked indicators. Inoperating our terms, performance better was all by went abroad-based transformation. under and resolutions strategic some adopted pany a challenging year, wasand to face the difficulties, the com- 2019 (FAMA), Máquinas de Fabricación For MACHINE MANUFACTURING - - - - - Commercial: define goals andactions. areas, to opportunity fourof areas as bychallenges see we where sustained is plan strategic FAMA’s SOLID STRATEGIES had become anunprofitable business. this price, to seat back takea to began qualitywhere for of margins, production influx narrowing and competitors steadyeign a With market. commodity a become had segment mold the 2017, in began that sales in drop sharp a of Because industry. container the areaof manufacturing mold the close to decision the made company the 2018, of quarter last the In hold appliances, among others. in Mexico, such as automotive, air & space and house by offering services to various manufacturing markets ply chain is consolidated end to end, from procure- from end, to end consolidated is chain ply dent company to an autonomous one Today, our sup Supply chain: chain: Supply 9001:2015 andISO14001:2015certifications. effi- operating ISO improve earned competitive.more We become to ciency and costs reduce efforts, improvement continuous prioritize to departments excellence: Operating offer services globally. to needed capacities bilingual keythe our with talent ourmetofof goalwe 80% preparingspecializing and in2019 and businesses, competitive internationally seek out We company. tomer-satisfaction-oriented Transformation: Make FAMA a fully service- and cus Smelting, Tooling and Automation businesses. NextGen 40 machines and the growth in sales for the biggest advances in this area were the sale of the first The services. and products of offering the and folio Open and expand both the client port client the both expand and Open Go from being a supply-chain-depen a being from Go lg poess restructure processes, Align ------In Engineering Services, we developed the basic en basic the developed we Services, Engineering In the past. load to offset the volume of casting that used moldsin A big challenge ahead for 2020 is maximizing the work the internal production mix and a rise in foreign to clients.thanks sales total of 2% in kicking year, last ability FAMA’sprofitin part a played segmentFoundry The machines andcurve clamps, and3peripheral devices. sub-assembly 8 cells, 19 developed have report--we to achievements notable some have we area, mation Auto the operating began first we after years Three and performance. abroad, we worked intensively on this area’s efficiency aggressivecompetition in and Mexico machines for IS being the best option for our clients, and aware of the of aim the machine.first With 4.0 NextGen the up ed nel and the support of the Container business, it start ments in 2019. Thanks to the achieveteamwork of its person of number a reported area Machinery The aim--it’s our demand. our just isn’t efficiency actions, and processes our of option--weone just best. In the every be want to one In the industries we serve, FAMSA is not content to be EFFICIENCY, TO BE THE BEST OPTION. EXACTING STANDARDS AND OPERATING and isahighly competitive product onthemarket. motors servo of line full a offers which machine, 4.0 SA completed the first incorporations of the NextGenFAM- 2019, In systems. motor servo developing by independent technologically become to - op portunities innovation identify Development: & Research make on-time delivery to external and internal clients. to easier it delivery. makes to This logistics and ment neering for a new container plant, and helped build a build helped and containernewplant,for a neering

gi ------operation, automation and control, and projects in general. and projects and control, automation operation, maintenance,of areas the involvementin companies’ reinforcedVitro’swe services these Throughmarket. glass architectural the in experience valuable quiring batch house at the XXX plant in the United States, ac - 68 ANNUAL REPORT 2019 molds area. the in particularly (FAMA), business Equipment Ma and chinery the in sales lower and Mexico, in segment fragrances and pharmaceutical the in mix price/product favorable less energy in prices, a rise the to attributed be resultsThesecan EBITDA inthecontainer businesstotaled USD pared to theUSD235million reported in2018. business stood at USD 218 million, an increase of 7.1% com close of the year, total consolidated salesfor theContainer grew, this was not enough to boost consolidated sales. At the performance, excellent andsalesby Fabricación deMáquinas (FAMA) reflected segment cosmetics and perfume the in U.S. the to products value-added of sales export Although tors that affected our revenues duringthe year. fac the of some just were clients, by ordering cautious and of Latin currencies American countries where we dobusiness,market instability, the involving volatility exchange-rate economy,Mexican the of slowdown The2018. to compared The results of theContainer divisionin2019 were stable in 2018. which is6%(less/more) thantheUSD58millionreported 2019 Results 55 million, - - - operations with the shutdown of the molds area. Going forward, we Going area. molds the of shutdown the with operations in our efficiency and performance increasing with along automation, Mar years. machinery and heavily ketare on betting recentprospectsand weare good, in on focusing been have we areas the solidate con and transform to continue will we Manufacturing, Machine In Container in2020. business the for year a good expect to us lead service, and attention quality, ourof basis the on earned have trust we the tomerrelationships and cus strong our with along elements, these all of amalgamation The to our clients. containers priced reasonably and high-qualityvironmentally-friendly, will be another en functional, novel, team bring to order in design exploit to intend our we strength of innovation and creativity The tages to current andprospective clients. differentiated advan offer can we where niches market new ploring remainingthreemachines purchased. weIS Wecontinue ex also will reinforceour competitivenessown and productivity, the in 2020 install we will to investments of advantage take to how learned Having respondmore quickly to their needs. operation finishing in a stall order operate to closer our to clients and in to is 2020 for country. commitment Our that in strongerposition a seek to us encourage Brazil in office sales strongresultsourofThe others. successfully, like premium liqueurs, air fresheners and candles, among CFT, to have venturedaddition we in where,exploresegments to ue intend to attack from all fronts in a concerted manner. We will contin we strategy 2025 for Molded our Under business. Container our of capacity human and operating the however, in confidence, haveWe aggressive intheir commercial tactics. increasingly become will competitors and skittish, remain and volatile to likelyare markets The 2020. in ahead challenges many are There A VISION FOR THE FUTURE 2020 OUTLOOK:

------that maximizes profit margins, considerably increasing sales inthe Au productbetter mix a with stable, keepMachineryWesales to expect potential. growthshow that those and strong,are wherewe segments of sight will focus our efforts on higher value-added businesses, without losing DA in2020. is EBIT stability a positive working and goal for financial of tion, with utiliza capacity increasing positioning, its build to continues FAMA order to remain competitive. in expect they quality same the with solutions low-investmentfering of equipment, clients’ our for lifecycles lengthen that projects pose pro we ahead, budgets innovation limited of prospects with Faced nities found inoutsourced manufacturing markets in Mexico. opportu the along its plants, efficiencyproductive in tocommitment tomation segment by leveraging on internal needs and the Company’s ------69 ANNUAL REPORT 2019 FAMA form a circular economy in our activities. With this in mind, admi mind, in this With activities. our in circulareconomy a form to need the to sensitive veryare we Máquinas, Fabricaciónde At CIRCULAR ECONOMY CERTAINTY FOR CLIENTS RELIABLE PRODUCTS AND PROCESSES, SUSTAINABLE FUTURE FOR AVISION in our dining areas. recycling campaign and waste separation FAMA participates in theelectronics disposal. and handling correct for waste separating reuse--and recycle, ce, nistrative areas coordinate to applythe “3 R’s” methodology--redu - - ir epoes ee sind o qas ht lae u adjoi up cleaned that squads to assigned were employees Vitro to cleanuptheMonterrey Metropolitan area businesses, inNuevo León. crime, call government’s the answered invite public general the streets and nonprofits abandoned and dirty Because of thestate of Nuevo León. government the Monterrey”byorganizedprogram, up “Let’s Clean embody it in our lives. One example of this is our participation in the we don’t just commit this principle to memory. company We take every In our opportunity to of Integrity. value our of definition the is principles our with keeping in and honesty unfailing with Acting “LET’S CLEANUP MONTERREY” PROGRAM sidewalks. painting then rubble, and materials trash, collecting by areas ning - 70 ANNUAL REPORT 2019 FINANCIAL AND OPERATINGFINANCIAL AND ANALYSIS 71 ANNUAL REPORT 2019 • dragged down both economies. that situation a altogether, pact the from withdraw to Congress US and staff president’s the both of members by threats and (USMCA) delays in ratification game, of the United the States-Mexico-Canadaof Agreement rules new the on clarity of lack a by complicated was Mexico’s relationship with its main trading partner, the United States, tors influenced the company’s results last year. fac other and This serve. we industries main the in activity slowing ened investment and consumption in the markets where we operate, Market volatility and jitters over a series of geopolitical events damp- many countries andalackof investment. by trade tensions, political instability, uncertain financial conditions in nounced slowdown in domestic and international economies, sapped for Vitrootherand industry players, characterized primarily by proa - competition intense and challenges, obstacles, of year a was 2019 - 72 ANNUAL REPORT 2019 tensions, a deterioration of industry around the world, trade constant of because movement less with slow, During this period, growth in the global economy was resulting narrowing of margins. the and competitors among war price a country, the primarily due to an excess of supply and weakness, production capacity in of signs showing began dustry in- construction US The sluggish. was participate we and Canada saw Statesgrowth in 2019, the market in which United the both of economies the Although tions tothepublichealthsector. medica supplying for system the to modifications as well as permits, construction new of interruption the pension of construction works already under way and ticularly through measures such as the temporary sus- investment public administrationernment halted par gov- current the and Authorities weak. was activity trade stable, was economy the although Mexico, In Global United States México GDP GROWTH 2015 3.2% 2.9% 3.3% 2016 3.2% 1.5% 2.9% 2017 3.7% 2.3% 2.1% 2018 3.7% 3.0% 2.6% -0.1% 2019 2.6% 2.3% - - 2019 compared toMXN19.23in2018. in MXN19.25 averaging stable, relatively was peso September 2018. Compared to the previous year, the in out topping dollar, per MXN20.13 ofto rangeMXN18.77 a in remained rate exchange the 2018, In close of 2018. MXN18.86 per dollar, compared to MXN19.65 at the As of December 31, 2019, the exchange rate stood at Geografía y (INEGI). Estadística de Nacional Instituto (INEGI)el ography and Ge- Statistics of Institute National byreportedthe as 2019, to 2018 from 0.1% of contraction slight a in resulting stagnated, Mexico in activity economic tors, fac internal some to addition in slowdown, global of process this to Due investment. of flow lower a and exchange rate peso/US dollar Average MX Spread US/MX (US) United States Mexico (MX) INFLATION 1.4% 0.7% 2.1% 2015 15.8 1.3% 2.1% 3.4% 2016 18.7 4.7% 2.1% 6.8% 2017 18.9 19.23 2.9% 1.9% 4.8% 2018 19.25 2.4% 2.4% 2.8% 2019 - 73 ANNUAL REPORT 2019 2.24 billionin2018,a2.6%reduction USD to compared 2019, 31, December ended year fiscal C SALES way of operating. rency better reflects Vitro’s current economic climate and Foreignin ofChanges ExchangeRates,” cur this because “The Effects 21(IAS-21), Standard Accounting national lar, pursuantto regulatory provisions containedin Inter its changed company functional currency for reporting purposes the to the USdol- 2018 In dollars. US nominal in expressed are section this in presented amounts The OPERATING AND CONSOLIDATED RESULTS CONSOLIDATED NET SALES 2019 2018 2017 2016 2015 2014 2013 YEAR noiae nt ae ttld S 21 blin o the for billion 2.18 USD totaled sales net onsolidated USD MILLION 2,180 2,238 2,075 1,051 882 836 881 - - products at highly competitive prices, which resulted in resulted lower salesinthat country. which prices, competitive highly at products turers (OEM) segment, accompanied by a battle to position manufac equipment original the in slowdown a perience ex to began States United the in industry automotive The close of 2018. tive Glass business declined 2.6% in 2019 compared tothe Automo- the in Sales year.last market this in vigorof lack widespread the despite prices, competitive at technology stantly out seeking high-quality products with cutting-edge con- is world the and Mexico in industry automotive The new clients in various countries. with products value-added placing markets, export some penetrating in succeeded segment Glass ArchitecturalThe caused projects sales inthissegment todecline. construction of suspension and temporary administration presidential in change the Mexico, In and declineinaccumulated sales. cesscapacity supplyand of products triggered slowdowna pressure, clients. cost But existing ex intense competition, and new both to sold sector commercial the in volume er high- to due segment glass architectural US the in growth a byprimarily fueled wereSales 2019. and 2018 between Sales in the Architectural Glass business weakened by 2.4% decline from theUSD2.00billionsalesreported for 2018. Flat Glass division in 2019 totaled USD 1.96 billion, a 2.1% both in gish Architecturalor Automotivethe in Sales Glass. slug was market of because year challenging a was 2019 FLAT GLASS - - - - startup phase. but cycle annual operating the the in delays unexpected yearby influenced this of part aplanned normally efforts, maintenance by affected were business this in sales year, the in to Later lines. thanks business four all 2018, in performance to strong compared 2019 for sales in growth The Inorganic Chemical Products businessreported a 4.9% er-than-expected volume andefficiency. process, startup the low- resulting models, some in of production affected which delays some into ran Mexico in opened had we line windshield new the year, the in Early 2019 2018 2017 2016 2015 2014 2013 YEAR FLAT GLASSSALES USD MILLION 1,960 2,001 1,852 802 672 649 676 74 ANNUAL REPORT 2019 Additionally, FAMA’s engineering service gained a gained service engineering FAMA’s Additionally, to decided FAMA lowclose itsmoldsbusinessdue to profitability. services. automation in mance perfor better and segment Equipment and chinery Ma- the largelybyspurred over2018, 2.5% up were sales (FAMA), division manufacturing machine our In of production andquality. standards exacting most the requireprocesses its so quality, and design about demanding highly are ents cli end and fashion, and trends following closely to dedicated segment a serves business Container The and theUnited States inthefourth quarter of 2019. CentralAmerica in accountsnew to sales recognized segment in liquors international premium markets during and the luxury year. the Vitro on more focus and Aneffort to made was theoffset in reduction Mexico tory management efforts. and other client multinational clients’ year-end inven- ersgeneral,in reductiona including in volume by one low demand from perfume and cosmetic manufactur Containerthe business wereaffectedin Sales also by ports of fragrance containers. ex higher and segment, perfume US the productsto value-added of sales export higher by part in offset Mexico, in markets fragrance and perfumes ceutical, to a reduction in sales in the premium liquor, pharma fume segment declined 1.7% from 2018 to 2019 due fragrancescosmetics, per Containerthe and to sales growth inexports. strong a despite 2018, in million USD235 to pared sales, with revenues of USD218 million in 2019 com- The Containers business reported a 7.1% reduction in CONTAINERS ------training andaudits. assistance, technical as well as manufacture, furnace glass and maintenance for plant projectconstruction, stronger positioning than in 2018, by offering services 2019 2018 2017 2016 2015 2014 2013 YEAR CONTAINER SALES USD MILLION 218 235 216 240 205 182 200 fourth quarter the of 2019, an Inaccident at the Crinamex Mexico. and States United the in costs gas and energy in rise a together with costs, ganization reor associated the as well as program, alignment the processinefficiency stemming re from ongoing by affected was Vitro business, Automotive the In and Architectural glass. primarily in the Flat Glass division--both Automotive percentage 2.5 reduction occurred The 2018. in lowerthan points 13.8%, was margin EBITDA The the Flat Glass segment. price pressures in the market which directly affected substantialby accompanied Mexico, in downturn ic econom a broad-based and industry construction 2018, attributed to a slowdown in the US residential in than lower 7.7% was 2019 year the forEBITDA NUES AND EXPENSES(EBIT) AND EBITDA OPERATING INCOME BEFORE OTHER REVE - - - - business opportunities in the architectural the in opportunities business and con by new offset partially were effects TheseEBITDA. in million 2 USD of impact an had Mexico in plant 19.9 million). (+USD agreements leasing treatment of accounting byforeign-exchangeoffset a fromwasthis the gain but million), -USD20.3 of effect yearbeforetotal (a the recoverythan insurance lower a reported pany the com In2019, other. each offset which pacts extraordinarylargeim reveals two 2019 and 2019 between EBITDA of comparison consolidated The in theInorganic ChemicalProducts business. and perfume containers, and solid, sustained results tainer segments, particularly in cosmetics, fragrance - - - 75 ANNUAL REPORT 2019 2019 2018 2017 2016 2015 2014 2013 YEAR CONSOLIDATED EBITDA 2019 2018 2017 2016 2015 2014 2013 YEAR OTHER REVENUES (EBIT) AND EXPENSES OPERATING INCOME BEFORE USD MILLION 300 365 393 259 193 134 155 USD MILLION

155 245 273 201 141 60 87 % OF SALES 14% 16% 19% 25% 22% 16% 18% December 2019,andother working optimization capital initiatives. in began that accounts program receivable of a included effort This balance sheet. healthy a maintain structure and cost processes, streamline the tive capital, the result of our efforts to develop more efficient administra working in lower investment our reflection of a also is increaseThe most the competitive option for toour clients inallindustries. remain us enabling generation, flow cash in increase 22 million the year before, representing a brisk 183% year-over-year USD to compared 2019, in million 63 USD totaled flow cash Free CASH FLOW over-year. compared to USD 162 million in 2018. This is a 60% reduction, year- million, 64 USD totaled 2019 in forVitro income net Consolidated NET INCOME FOR FISCALTHE YEAR ous tax year lossesanditsimpactondeferred taxes. in 2018 (USD 46 million), due primarily to the amortization of previ effect tax rate of 17%. This is 72% less than the tax charge reported an to equivalent million, 13 USD of tax income paid Vitro2019, In TAXES hedging activity. input energy as well as leasing, and debt bank on expense interest net effect of the currency, and this in operations company in dollar the against soliditypeso’s the fromfor stemming losses to eign-exchange largely due was 2019 in cost financial net in increase This 4% more thanin2018 when ittotaled USD65million. The Company reports a net financial cost of USD 67 million in 2019, NET FINANCIAL COST - - - pany’s financial cost and willfurther improve itsfinancial condition. Com the reduced transaction accounts receivable. This certain off a through working flexibility capital optimization program financial that included a its program to sell improved Vitro year, the During was 1.6x. EBITDA to debt net and 2.4x, at 2019 ended ratio debt/EBITDA comparedmillion, atmillion 291 toUSD of end the 2018. Thetotal At the close of 2019, the Company had a cash balance of USD 230 June 2023 in order to reduce leverage and maintain a solid position. USD50 off million inadvance onasyndicated USD700millionloanexpiring in paid voluntarily Vitro year, the of quarter first the In mark-to-market effects of the Company’snegative and swapstandard pegged 16 to theIFRS LIBOR. new the under leasing to corre sponding rest the and loan, syndicated a to related and dollars US in million, made up of USD 650 million in long-term debt denominated 716 USD was debt Company’stotal the 2019, December31, of As CONSOLIDATED FINANCIAL POSITION pacity. machines, IS new casting technology, in maintenance and increasing equipment ca million 27 USD invested business Container The 5 millionininvestment toward general plant maintenance. and IT applications. The Chemical Products Business allocated USD both in this country and in the United States; frames, molds, tooling, vestment in a new windshield line in Mexico to serve new platforms as USD 49 million in the Automotive Business, which include in include which Business, Automotive the in million 49 USD as Pennsylvania, IT applications and general plant maintenance, as well repaircold including Carlisle, segment, production Glassofat line a The Flat Glass business invested USD 85 million in the Architectural The company invested a total of USD 172 million in Capex in 20109. CAPITAL EXPENDITURES - - - - 76 ANNUAL REPORT 2019 of Directors had approved an investment of USD 60 USD of investment an approved had Directorsof On February 27, 2019, Vitro announced that its Board investment innew technologies Vitro Automotive Glass announces USD60million MATERIAL EVENTS the endof 2018. 2019 at 42.05 pesos per share, compared to 52.92 at closed VITROA) symbol (ticker Exchange Stock ican The value of the Company’s capital stock on the Mex tween Mexico, the United States and Canada (TMEC). and the negotiations over a new trade agreement be- foreign, and domestic both investment, lower in ing result uncertainty geopolitical government, federal the by spending public in contraction a country, the in growth economic weak to due consensus, the low be- 4.56% yield a with expectations market pointed In 2019, the Mexican Stock Market’s IPC index disap STOCK PERFORMANCE (MXNPERSHARE) QUARTER I II III IV 46.97 47.50 40.04 39.50 LOW 53.30 54.34 49.99 43.98 HIGH - - - January 2,2020. on loan syndicated its of portion another prepaid ly proceedsthe With of transaction,the Vitro voluntari structure. capital and costs financial Vitro’simprove to USD 110 million. The purpose of this program is to tion to extend it for another year, in the amount of up Santander,duration a of with three op- the and years Banco Santander with USD110million Vitro issuesan Accounts Receivable Program with payment was madeonMarch 1,2019. growth opportunities that may arise in the future. The seize to prepared being and structure financial solid actions in line with the Company’s goal of maintaining financial its structure and improve reduce interest to payments, order both in loan, that toward million 50 USD of amount an advance in and payvoluntarily to intention its of loan, syndicated the of Agent trative Adminis as capacity its in Bancomer, BBVA formed in- had that announced Vitro2019, February18, On Vitro announces voluntary prepayment of debt ents inthe spare partsmarket. cli and manufacturers equipment which original supply will business, glass automotive the in leadership strengthen Vitro’s market to America North in cilities fa- new on focus will investment The Board. the by issued guidelines the toaccording investments these implementing on months 18 next the over work will million in new technologies. The Executive Committee - - - 77 ANNUAL REPORT 2019 Membership in organizations and associations • • • • • • • • • • • • • • • • • • • • • • MX Asociación deRepresentación Industrial y deServicio Industriales Regiomontanos del Poniente, AC Asociación Mexicana delaIndustria Salinera Comité de Ayuda Mutua Monterrey Poniente CLAMMOPO Asociación Mexicana delaIndustria delaSal Asociación Nacional delaIndustria Química CLÚSTER de Vivienda y Desarrollo Urbano Sustentable FTSA-Federación de Trabajadores deSindicatos Autónomos UANL – Tópico Impartido en la Universidad Autónoma de Nuevo León Superiores deMonterrey Instituto Estudios de el Tecnológico cony Convenio – VitroCátedra Asociación de Vidrieros Nuevode León cación Edifi la en Energía de Ahorro de Empresas de Asociación – AEAEE COPARMEX –Confederación Patronal delaRepública Mexicana FIDE –Fideicomiso para el Ahorro delaEnergía Eléctrica Industria y Transformación CONCANACO - Confederación de Cámaras Nacionales de Comercio, CANACINTRA -Cámara Nacional delaIndustria y Transformación Asociación deIndustriales De Ecatepec UNIDEM -Unión Industrial delEstado deMéxico AIEM - Asociación deIndustriales delEstado deMéxico Grupo de Ayuda Mutua Industrial CLÚSTER Automotriz CONACYT -Consejo Nacional deCiencia y Tecnología GRI: 102-13,102-6 - • • • • • LATAM &EUROPE • • • • • • • • • • • • • • • • • • • • • • USA Tyrone Chamber of Commerce Blair County Chamber of Commerce Asociación deEmpresarios deChía CAMARA Y COMERCIO ACRIP -FEDERACIÓN NACIONAL DEGESTIONHUMANA Chamber of Commerce Wichita Wichita Co. Local Emergency Planning Committee Fred Pryor Learning Solutions Willamette Workforce Partnership Strategic Economic Development Corporation Cascade Employers Association Society for Human Resource Management (SHRM) Michigan Works MOCC Friends of Evart Development Richland Crawford Area 10 Workforce Oregon Manufacturing Partnership Extension (OMEP) Chamber of Commerce Committee Wichita Co. Local Emergency Planning Madison County LEPC Bluegrass Business Consortium Richmond Chamber of Commerce Berea Chamber of Commerce Strategic Energy Management Fresno Chamber of Commerce 78 ANNUAL REPORT 2019 GRI INDEX 79 ANNUAL REPORT 2019 SDG 17 Cont 102-14 102-13 102-12 102-11 102-10 102-8 102-7 102-6 102-4 102-3 102-2 102-1 Description maker Statement from senior decision- 2. STRATEGY Membership inassociations External initiatives approach Precautionary principleor organización Cambios significativos enla other workers Information onemployees and Scale of theorganization Markets served Location of operations Location of headquarters services Activities, brands, products, and Name of theorganization 102. ORGANIZATIONAL PROFILE Response or reference Letter to Stakeholders - Page 9 Membership inorganizations andassociations - Page 78 Strategic partners -Page 45 Our Community -Page 42 Our Community -Page 42 Environment -Page 38 Our Employees -Page 31 Letter to Stakeholders - Page 9 *Includes employees with permanent contracts inall Vitro operations. Does not includeoutsourcing, interns or independentprofessionals. Our Employees -Page 32 Our Employees -Page 32 Global Presence -Page 7 Vitro Brands -Page 6" Global Presence -Page 7 Global Presence -Page 7 Monterrey, Nuevo León, Mexico Vitro Brands -Page 6 Global Presence -Page 7 Containers -Page 62 Flat Glass -Page 49 Vitro S.A.BdeC.V.

Assurance Independent Yes 80 ANNUAL REPORT 2019 SDG 8 16 16 16 16 Cont 102-47 102-16 102-46 102-45 102-41 102-40 102-34 102-33 102-22 102-21 102-18 102-17 102-15 Description List of material topics norms of behavior Values, principles,standards, and 3. ETHICS AND INTEGRITY Boundaries Defining report content andtopic consolidated financialstatements Entities includedinthe 6. REPORTING PRACTICES Collective bargaining agreements List of stakeholder groups concerns Nature andnumber of critical concerns Communication of critical committees governance body andits Composition of thehighest social topics economic, environmental, and Consulting stakeholders on Governance structure STAKEHOLDERS 4. GOVERNANCE AND concerns aboutethics Mechanisms for advice and opportunities Key impacts,risks,and and sustainability performance. December 31,2019. The information contained inthisdocument isintended to provide greater insight into organization’s the nonfinancial stakeholders, becauseitcontains information anddetails of actions,initiatives and projectscarriedout bythe company from January1 to The content of thisreportis consistent with Vitro’s 2019Materiality Assessment of andisone the ways we meet theexpectations of our Response or reference Materiality Assessment - Page 24 Our Company -Page 5 Containers -Page 62 Flat Glass -Page 49 Consolidated Financial Statements -Page 90 Collective bargaining - Page 33 External: Clients, competitors, local community, NGOs, government, academia,among others. Internal: Partners andshareholders, employees, employee families andsuppliers Vitro stakeholders include: Corporate Governance -Page 20 Corporate Governance -Page 20 Corporate Governance -Page 20 Materiality Assesment -Page 24 Corporate Governance -Page 20 Whistleblower Hotline -Page 29 Letter to Stakeholders - Page 9

Assurance Independent 81 ANNUAL REPORT 2019 SDG 16 8 8 Cont 103-1 102-56 102-55 102-54 102-53 102-52 102-51 102-50 102-49 102-48 205-1 201-3 201-1 103-2 Description and itsBoundary Explanation of thematerialtopic 103. MANAGEMENT FOCUS External assurance GRI content index with theGRIStandards Claims of reporting inaccordance regarding thereport Contact point for questions Reporting cycle Date of mostrecent report Reporting period Changes in reporting Restatements of information related tocorruption Operations assessed for risks 205. ANTICORRUPTION retirement plans Defined benefitand other and distributed Direct economic value generated 201. ECONOMIC PERFORMANCE components Management approach andits Independent verification letter - Page 89" standard. This report was independently verified by VALORA SOSTENIBILIDAD EINNOVACION, S.A.DEC.V. According to the company's materiality Response or reference Materiality Assessment -Page 24 GRI Index 2019 The 2019Integrated Annual Report hasbeenprepared inaccordance with GRIStandards: Core Option. www.vitro.com" For more information, visit: 66265, Mexico or at our corporate headquarters located at: Av. Ricardo Margaín #400,Col. Valle delCampestre, San Pedro Garza García, Nuevo León [email protected] We welcome your comments onthecontent of thisreport. E-mail: Social Corporate Responsibility andSustainability Viridiana Delgado Elizondo actions of all of Vitro operations The information inthisintegrated annual report encompasses theperiodfrom January 1to December 31,2019,and corresponds to the The lastreport was publishedin2019,basedoninformation for 2018. actions of all of Vitro operations. The information inthis Integrated Annual Report encompasses theperiod from January 1to December 31,2019,and corresponds to the This report hasbeenprepared according toGRIStandards andthemateriality assessment conducted in2019. of information with to previousrespect reports. The data presented contain someof countries theactivitiescarriedoutinall where weoperate. This report contains no restatement Whistleblower Hotline -Page 29 Regulatory Compliance -Page 30 At Vitro, all employees receive the wages andbenefitsestablished by law, along withincentives in keeping withtheir performance. Labor Practices - Page 33 Consolidated Financial Statements -Page 90 Vitro Sustainability -Page 23

Assurance Independent 82 ANNUAL REPORT 2019 13 12 12 16 16 16 SDG 12 13 302-1 301-2 301-1 206-1 205-3 205-2 Cont 303-1 302-3 organization Energy consumption withinthe 302. ENERGY Recycled inputsused volume Materials usedby weight or 301. MATERIALS monopoly practices behavior, anti-trust, and Legal actions for anti-competitive BEHAVIOR 206. ANTI-COMPETITIVE and actionstaken Confirmed incidents of corruption procedures about anti-corruption policiesand Communication andtraining Description Water extraction by source 303. WATER Energy intensity Intensidad deextracción hídrica 2.24m WATER CONSUMPTION We reduced our energy intensity by 8%. In 2019,efficiency toprojects enabledus reduce our carbon footprint by 6%. Glass Recycling -Page 39 Circular Economy -Page 39 Company businessor that of itssubsidiariesasaresult of suchissues. There were nomaterial or significant incidents of non-compliance withthelaw in2019that might have affected the ordinary course of Corporate Governance -Page 20 Our Ethics -Page 27 Response or reference Texas Heat Content of Natural Gas Deliveries Consumers. to The factors calculate usedto thisconsumption are taken from theCalifornia Heat Content of Natural Gas Deliveriesto Consumers and Total energy consumption 28,407,988GJ Extracción deagua Vitro Energy Efficiency - Page 41 VITRO WATER CONSUMPTION Recycled water Municipal or piped water Wastewater Well water

m 3 31% 3% 7,949,335.88 3

/producción Vitro

2017 .04% 7,941,563.12 66% 2018 7,883,860.11 2019

Assurance Independent Yes Yes Yes Yes 83 ANNUAL REPORT 2019 13 13 13 SDG 13 13 13 y 17 14, 15 12 305-7 305-6 305-5 Cont 305-4 305-2 305-1 304-3 303-3 significant air emissions oxides (SOX), andother Nitrogen oxides (NOX), sulfur substances (ODS) Emissions of ozone-depleting Description Reduction of GHGemissions GHG emissionintensity from power generation Indirect (Scope 2)GHGemissions 303. AGUA Direct (Scope 1)GHGemissions 305. EMISSIONS Habitats protected or restored 304. BIODIVERSITY Water recycled andreused llows: Significanttotaled emissions tons inall 13764.13metric of the Company’s operations andinallthe countries where weoperate, as fo- No emissionsof substances that might damage theozone layer (Mtons CFC-11e) were detected inour operations in2019. Emissions andClimate Change -Page 40 Emissions andClimate Change -Page 40 Response or reference All theseemissionsare below the permissible limitinthe various countries where we operate. indicator ineffect for the2018period; thisisbecausethecalculations were performed before publication ofthe2019electrical factor. To calculate GHGemissionsfrom consumption of electricity from emission theCFE,electrical factor used for annual the report the was Emissions andClimate Change -Page 40 Emissions andClimate Change -Page 40 Organización Vida Silvestre, A.C (OVIS) -Page 47 Recycled water: 0.04%of total consumption PM Particles HAP COV COP SOX NOX Atmospheric emissions

2019 82% 9% 0% 1% 0% 9%

Assurance Independent Si Si Si 84 ANNUAL REPORT 2019 8 8 8 16 12 12 12 12 SDG 401-3 401-2 401-1 307-1 306-4 306-3 306-2 306-1 Cont Parental leave employees to temporary or part-time employees that are not provided Benefits providedto full-time employee turnover New employee hires and 401. EMPLOYMENT regulations environmental laws and Non-compliance with 307. ENVIRONMENTAL COMPLIANCE waste Transportation of hazardous Significant spills method Waste by typeanddisposal destination Water discharge by quality and Description 306. WASTEWATER AND WASTE All employees, inallof Vitro's globaloperations, are entitled toparental leave At Vitro, allemployees receive thecompensation andbenefitsestablished by law and are given performance incentives as well. Labor Practices - Page 33 Turnover in2019 was 23%onaverage for allour operations around the world. 80% were men 20% were women In 2019there were 3,958new hires (includingonly full-timepermanent employees) Company businessor that of itssubsidiariesasaresult of suchissues. There were nomaterial or significant incidents of non-compliance withthelaw in2019that might have affected the ordinary course of All hazardous waste generated was specialized channeledto companies who guarantee their proper handlinganddisposal. Company businessor that of itssubsidiariesasaresult of suchissues. There were nomaterial or significant incidents of non-compliance withthelaw in2019that might have affected the ordinary course of In 2019, Vitro produced of tons 803,577.2metric waste, 93%of which was sent for recycling. Circular Economy -Page 39 Response or reference Nonpoint discharges Point discharges TYPE OF DISCHARGE

2019 12% 88% Assurance Independent Yes Yes 85 ANNUAL REPORT 2019 SDG 8 8 8 8 Cont 403-3 403-2 403-1 402-1 Description their occupation high riskof diseasesrelated to Workers with highincidence or 402. LABOR-MANAGEMENT RELATIONS work-related fatalities or illness absenteeism, andnumber of occupational diseases,lostdays, Types of injury andrates of injury, and safety committees joint management–worker health Workers representation in formal 403. OCCUPATIONAL HEALTH AND SAFETY cambios operacionales Plazos deaviso mínimossobre Response or reference Health andSafety -Page 34 that compels continue usto strengthening our Comprehensive Health and Safety System andto continue training our employees. Despite our commitment toprotecting thesafety of our employees, we regret to report one fatal work accident an in2019, experience yees inthe workplace. This includestherelationship between accident frequency andseriousness,isanother factor reflecting the well-being of our emplo- Our accident rates are calculated usingaspecialized methodology that identify enablesusto andprevent accidents more effectively. Health andSafety -Page 34 gement commissions. 100% of our unionagreements andcollective bargaining agreements incorporate matters of healthand safety throughmixed labor-mana- equipment. These agreements alsoincludeanassurance of physical safety protection through the review and regular provision of personal protection Note that alltheperiodsof prior notice of organizational change establishedinour collective bargaining contracts are fully. respected Fatalitites Accident index Incapacitating accidents Accidents INDICATOR The General Illness Days Lost Rate (GIDLR) The General Illness Rate (GIR) The Days Lost Rate (DLIR) The Incident Rate (IR) INDEX 2019 GLOBAL 2019 per 100 employees 192.7 1111 28.3 226 6.3 0.5 79 1 Assurance Independent Si 86 ANNUAL REPORT 2019 8 8, 16 8 16 16 5, 8 y 4 y 8 4 y 8 8 SDG 409-1 408-1 407-1 406-1 405-1 404-3 404-1 403-4 Cont 406. NON-DISCRIMINATION forced or compulsory labor significant risk for incidents of Operations andsuppliers at 409. FORCED ORCOMPULSORY LABOR child labor significant risk for incidents of Operations andsuppliers at 408. CHILDLABOR bargaining may beat risk of association and collective which theright tofreedom Operations andsuppliers in 407. FREEDOMOF ASSOCIATION AND COLLECTIVE BARGAINING corrective actionstaken Incidents of discrimination and and employees Diversity of governance bodies 405. DIVERSITY AND EQUAL OPPORTUNITY and career development reviews receiving regular performance Percentage of employees per employee Average hours of training per year 404. TRAINING AND EDUCATION unions in formal agreements with trade Health andsafety topics covered Description Our Employees -Page 32 benefits, and we establishthe controls necessarily to avoid allkinds of forced or childlabor. cation, andchannels for effective feedback. Additionally, we comply withallapplicablelabor laws,including the payment ofwages and based solely ontheir work experience, jobskillsandrespect for our values. We supportadiverse, inclusive workplace, communi open We know that diversity isthebasisfor our success. For thisreason, we are committed to recruiting, hiringand promoting our employees where we operate. 100% of our operations have Recruitment and Hiring policiesthatprohibit theemployment of minors, each asestablishedin country Labor Practices - Page 33 Labor Practices - Page 33 Our Ethics -Page 27 Governance Structure andCommittees - Page 21 Performance Evaluation - Page 36 Average hours of training per employee doesnot includeoperations inCanada. *Includes training for permanent employees, excluding independent professionals, outsourcing andinterns. Training - Page 35 gement commissions. 100% of our unionagreements andcollective bargaining agreements incorporate matters of healthand safety throughmixed labor-mana- Response or reference

- Assurance Independent Yes Yes Yes 87 ANNUAL REPORT 2019 16 16 17 SDG 17 8 8 2 419-1 418-1 416-2 413-1 Cont 412-3 412-2 412-1 411-1 413. LOCAL COMMUNITY economic area regulations inthe social and Non-compliance with laws and 419. SOCIOECONOMIC COMPLIANCE data privacy andlossesof customer concerning breaches of customer Substantiated complaints 418. CUSTOMER PRIVACY impacts of products andservices concerning thehealthandsafety Incidents of non-compliance 416. CUSTOMER HEALTH AND SAFETY and development programs engagement, impactassessments, Operations withlocal community Description human rights screening rights clausesor that underwent and contracts that includehuman Significant investment agreements INDIGENOUS PEOPLES 411. RIGHTS OF rights policiesor procedures Employee training onhuman or impactassessments humanrightssubject to reviews Operations that have been 412. HUMANRIGHTS ASSESSMENT rights of indigenous peoples Incidents of violations involving

manner, offering equalopportunities for allparties by presenting proposals, obtaining contracts and respectinghuman rights. commercial relationship. We therefore conduct our relationships, trade agreements and contracts honest, withsuppliers inan transparent At Vitro, our suppliers are key to theCompany’s growth. Our relationship andalong-term trust, withsuppliers isbasedonmutualbenefit, Regulatory Compliance -Page 30 For more information about Vitro’s Privacy Notice, visitthe corporate website at vitro.com/es/aviso-de-privacidad sition) by directly sending their to thepersonrequest responsible at [email protected] Users of the websites of Vitro anditssubsidiariesare entitledto exercise their ARCO rights (Access, Rectification, Cancellation and Oppo- In 2019,there were noidentified claims of violations ofcustomer privacy orloss of customer data. Regulatory Compliance -Page 30 Strategic partners -Page 45 Our Community -Page 42 Response or reference Training -Page 35 Regulatory Compliance -Page 30 Company businessor that of itssubsidiariesasaresult of suchissues. There were nomaterial or significant incidents of non-compliance withthelaw in2019that might have affected the ordinary course of

Assurance Independent Yes 88 ANNUAL REPORT 2019 The procedures that we requirements necessary to necessary requirements Our work was carried ou carried work was Our and Standards Assurance the the Information Financial Reviews ofHistorical security level The scope of our independent review, as well as the evidence gathering procedures evidence the well procedures review, gathering as as independent of our The scope information the included in the GRI Standards and, based on the work the on based and, GRI the Standards in included performance the indicators regarding of Report a the carry to out limited content review was the on responsibility Our Our respons error necessary of Vitr The Management GRIStandards. the misstatement in accordance with with accordance in misstatement of Vitro The Management Management the the the “Report”) This report parties. December 131, to January period for the information financial We were required by the Management of Vitro, S.A.B. de C.V. de S.A.B. Vitro, of Management the by We were required To the Management of Vitro,of C.V. S.A.B. de Management the To foreign/English (Translation Spanishfrom Language Original) IndependentReview Report on t

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89 ANNUAL REPORT 2019