TO OUR STOCKHOLDERS

During the year, Grupo Lamosa was able to leverage the recovery of construction in Mexico and the growing use of ceramic products in building works because of the new applications that advancing technology has brought. This translated into growth.

Total sales reached $10,636 million pesos, 19% above 2014. The company’s revenues were favorably affected by the sustained growth of the construction sector, enhanced mortgage origination and the expansion of export sales. 2015 EBITDA was $2,325 million pesos, 16% more than the previous year, with a sales margin of 22%.

The achievements of the year, combined with the company’s efforts to expand its stockholder base and analyst coverage, resulted in an annual return of 37% for investors in Grupo Lamosa shares through the Mexican Stock Exchange (BMV), directly reflecting the company’s performance.

The company managed its financial recourses effectively in 2015, ensuring that it could face the challenges of the volatile and uncertain environment and that its financial robustness remained unaffected.

During the year, Grupo Lamosa implemented major initiatives as part of its growth strategy and in order to focus its efforts on its core business lines and thereby assure its capacity to continue expanding, not just in Mexico, but also in other regions across the Americas. One of these initiatives was the selling of Grupo Lamosa’s Sanitaryware Business in the second quarter of the year. Additionally, a large investment plan was implemented to incorporate new manufacturing centers with leading-edge technology. These facilities will make products with characteristics and designs in accordance with the latest market trends and specific consumer needs.

Grupo Lamosa also continued the efforts it had been making over the past several years to assure its position as a company focused on innovation and design, introducing programs to bring it closer to an increasingly younger end user who is today characterized by diverse and changing purchasing habits and patterns.

In 2015, the company celebrated 125 years of operations in the construction sector in Mexico, an outstanding achievement that very few Mexican companies can boast. This market permanence reflects Grupo Lamosa’s capacity to evolve, to reinvent itself and to adapt to the changing conditions in the markets it serves.

Going forward, Grupo Lamosa will continue to strengthen its presence in Mexico and also make a concerted effort to expand its operations outside the country, largely throughout the Americas, through acquisitions and/or alliances with participants in these markets.

Grupo Lamosa would like to thank its shareholders once again for their trust, its people for their efforts, and its creditors, suppliers, distributors, customers and friends for their vital support.


FEDERICO TOUSSAINT ELOSÚA
Chairman of the Board of Directors and Chief Executive Officer