Mexichem to Appoint Daniel Martínez-Valle Chief Executive Officer

January 31, 2018

Martínez-Valle Brings Formidable Industrial and Technology Leadership
to the Company

TLALNEPANTLA DE BAZ, Mexico–(BUSINESS WIRE)–Mexichem, S.A.B. de C.V. (BMV: MEXCHEM*) (“The Company” or “Mexichem”)
announced that it will appoint Daniel Martínez-Valle to the position of
Chief Executive Officer, following the resignation of Antonio Carrillo,
who has informed us that he is leaving to pursue other professional
interests in the US at a public company. The Board of Directors of
Mexichem will formally appoint Mr. Martínez-Valle in the coming days.

Mr. Martínez-Valle, 46, is currently CEO of Kaluz, an industrial and
financial conglomerate, which he joined in 2010. Previously, he was the
Director of Worldwide Strategy & Planning at Cisco, a worldwide
technology leader. Prior to that, Mr. Martínez-Valle was the founding
partner of a private equity firm and also served as CEO of Aquanima, a
leading provider of global supply management for large corporations in
Europe and Latin America. Earlier in his career, he was a consultant at
McKinsey & Co., and served as Chief of Staff in the Mexican Ministry of
Finance. Mr. Martínez-Valle earned an MBA from Stanford University, a
B.S. from ITAM.

Commenting on this upcoming appointment, Mr. Juan Pablo del Valle,
Mexichem’s Chairman said, “We are fortunate to have a person of Daniel’s
leadership style, vision and background. He is the right person to lead
Mexichem in our development as a purpose driven, future fit
organization. Daniel has been instrumental in the profitable growth and
global expansion of Kaluz and brings tremendous industrial and
technological leadership. Importantly, Daniel is current on all areas of
Mexichem’s operations, having worked closely with the Company’s
operating management teams in an advisory capacity, specifically around
recent acquisitions, including the Netafim transaction.”

Mexichem’s Chairman continued, “We appreciate Antonio’s valuable
contribution to all Mexichem’s stakeholders and his role in developing
the organization’s talent and in positioning the Company for future
growth. At the same time, we accept his decision to assume another
leadership position, and we all wish him continued success in his new
endeavor.”

“This is a great honor for me, and I am pleased to be working together
with the excellent global teams in place at Mexichem,” Mr.
Martínez-Valle noted. “Mexichem has a unique growth platform, and I look
forward to leveraging my experience to build upon the Company’s success
to-date.”

“This was a difficult decision for me personally. Mexichem is a
fantastic company with strong fundamentals and a terrific management
team. I am pleased to be leaving it in excellent hands, with strong
growth prospects ahead and with tremendous potential coming from the
Netafim acquisition” said Antonio Carrillo.

The Company takes this opportunity to re-affirm its guidance for 2017
full year EBITDA growth of 20%-25% above the $884 million in EBITDA
reported in 2016. Mexichem expects to close the Netafim acquisition in
early February.

In order to accommodate any questions from the financial community
related to this announcement, the Company has decided to host a brief
conference call at 4pm Mexico City Time/5pm US Eastern Time today,
January 31, 2018, hosted by Mr. Carrillo and Mr. Martínez-Valle. The
call will be open to analysts and investors.

Details are as follows:

USA Toll Free Dial-in: +1 (877) 883-0383

International Dial-in: +1 (412) 902-6506

Participant Elite Entry Number: 1593841

Click here
for the webcast.

Mr. Carrillo and Mr. Martínez-Valle will work together during the
upcoming transition period, and both will participate in the Company’s
investment community conference call scheduled for Thursday, February
22, 2018 at 10 a.m. Mexico City Time/11 a.m. US Eastern Time, following
the release of Mexichem’s fourth quarter and full year 2017 results.

ABOUT MEXICHEM

Mexichem is a global leader in plastic piping and one of the world’s
largest chemical and petrochemical companies. It has more than 50 years
of experience. The Company contributes to global development by
delivering an extended portfolio of products to high growth sectors such
as infrastructure, housing, datacom and water management, among others.
With operations in 37 countries, 120 facilities worldwide and more than
18,000 employees, Mexichem has the rights to produce fluorspar in two
mines in Mexico, as well as 8 formation academies and 15 R&D labs.
Operations are divided into two value chains and three business units:
Ethylene Chain: Vinyl and Fluent Business and Fluor Value Chain, which
includes Fluor business group. Mexichem has annual revenues of US$5.4
billion and has been traded on the Mexican Stock Exchange for more than
30 years. The company is member of the Mexican Stock Exchange
Sustainability Index and the sustainability emerging markets index
FTSE4Good.

Forward-looking Statements

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

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