UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16 OR 15D-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April , 2003
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Commission File Number: 001-13196
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DESC, S.A. DE C.V.
------------------
(Translation of registrant's name into English)
PASEO DE LOS TAMARINDOS 400-B, BOSQUES DE LAS LOMAS, 05120 MEXICO, D.F., MEXICO
-------------------------------------------------------------------------------
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F __
---
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ____
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes |_| No |X|
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-___________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
Desc, S.A. de C.V.
-------------------------------
(Registrant)
Date: April 30, 2003 By /s/ Arturo D'Acosta Ruiz
----------------------- --------------------------------
(Signature)
Name: Arturo D'Acosta Ruiz
Title: Chief Financial Officer
2
The following are included in this report on Form 6-K:
Sequential
Item Page Number
---- -----------
1. Press Release, dated April 29, 2003, announcing
Registrant's Results for the First Quarter of 2003 4
2. Consolidated Financial Statements of Registrant
as of December 31, 2002 and 2001, in the format 18
required to be filed with the Mexican Stock Exchange.
3. Consolidated Financial Statements of
Registrant as of March 31, 2003 and 2002, in the format 70
required to be filed with the Mexican Stock Exchange.
3
EXHIBIT 1
---------
[Desc Logo]
DESC ANNOUNCES FIRST QUARTER 2003 RESULTS
-----------------------------------------
Mexico City, April 29, 2003 - Desc, S.A. de C.V. (NYSE: DES; BMV:
DESC) announced today its results for the first quarter ended March 31, 2003
(1Q03). All figures were prepared according to generally accepted accounting
principles in Mexico. -
HIGHLIGHTS
----------
During the first quarter of 2003, the Company's EBITDA improved significantly
from US$18 million reported during the fourth quarter of 2002, to US$51 million.
This result reflects the following:
|X| The initiation of the Tractor Project in the Autoparts Sector for the
production of automotive power train components,
|X| Higher sales volumes in the Chemical Sector, and
|X| Improved results from the Real Estate Sector due to higher sales from
the Punta Mita project.
Year-over-year the results for the first quarter of 2003 reflect a decline
caused by:
|X| Lower sales in the Autoparts Sector as a result of the ongoing
temporary shutdowns in some of the assembly plants in order to reduce
inventory levels, and the closing of the Daimler Chrysler Lago Alberto
Plant in Mexico City,
|X| In the Chemical Sector, the pressure on sales prices due to the
worldwide oversupply, as well as the increase in main raw material
prices, and
|X| Increases in the cost of raw materials in the Food Branded Products
business.
4
DESC, S.A. DE C.V. AND SUBSIDIARIES
-----------------------------------
TABLE 1. CONSOLIDATED FIGURES
(FIGURES IN MILLIONS OF CONSTANT PESOS (PS.) AND U.S. DOLLARS (US$))
------------------------------------------------------------------------------------------------------------------------------------
1Q03 1Q03
vs. vs.
1Q03 1Q02 1Q02 4Q02* 4Q02
------------------------------------------------------------------------------------------------------------------------------------
Sales (Ps.)(3) 5,126 4,892 4.8% 4,451 15.2%
------------------------------------------------------------------------------------------------------------------------------------
SALES (US$)(1) 471 507 -7.0% 430 9.8%
------------------------------------------------------------------------------------------------------------------------------------
EXPORTS (US$)(2) 216 228 -5.6% 187 14.9%
------------------------------------------------------------------------------------------------------------------------------------
Operating Income (Ps.)(3) 218 374 -41.8% -169 NA
------------------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (US$)(1) 20 39 -48.7% -17 NA
------------------------------------------------------------------------------------------------------------------------------------
Operating Margin 4.2% 7.7% -3.8%
------------------------------------------------------------------------------------------------------------------------------------
EBITDA (Ps.)(3) 552 671 -17.7% 197 NA
------------------------------------------------------------------------------------------------------------------------------------
EBITDA (US$)(1) 51 70 -27.1% 18 NA
------------------------------------------------------------------------------------------------------------------------------------
Net Majority Income (Ps.)(3) -323 149 NA -745 NA
------------------------------------------------------------------------------------------------------------------------------------
NET MAJORITY INCOME (US$)(1) -30 15 NA -72 NA
------------------------------------------------------------------------------------------------------------------------------------
1Figures in U.S. dollars for sales, operating income, EBITDA and net income are
calculated using monthly figures in current pesos divided by the average monthly
exchange rate.
2 All export figures are based on real sales invoiced in U.S. dollars.
3All figures in this report are expressed in constant pesos as of March 31,
2003. * Actual results in pesos based on audited financials.
SALES
-----
During the first quarter, sales increased 9.8% when compared to 4Q02, from
US$430 million to US$471 million. This result reflects the initiation of the
Tractor Project in the Autoparts Sector, as well as price increases and higher
sales volumes in the Chemical Sector and sales related with the Punta Mita
project in the Real Estate Sector.
When compared to 1Q02, revenues declined 7.0% to US$471 million from US$507
million. This result was due to the 24.7% decline in revenues from the Autoparts
Sector caused by the drop in production volumes of OEM's, the closing of the
Daimler Chrysler plant in Mexico City, and, despite the recovery Q-o-Q, the
declining industry trend mentioned during previous quarters.
Revenues from the Chemical Sector increased 21.2% when compared to 1Q02, as a
result of the repositioning of inventories by some clients and a greater demand
in the detergent market.
Sales in the Food Sector declined 8.0% when compared to 1Q02 due to the closing
of the Pork Business in the Bajio region. However, it is important to note that
the pork operation in Yucatan is showing positive results.
Sales from the Real Estate Sector declined 9.7% when compared to 1Q02 because
estimated sales in the Bosques de Santa Fe project were not achieved.
5
GRAPH 1 - NET SALES 1Q03
SECTOR NET SALES 1Q03 (%)
------ ------------------
Autoparts 41%
Chemical 38%
Food 16%
Real Estate 5%
EXPORTS
-------
Quarter-over-quarter total exports increased 14.9% due to higher sales from the
Autoparts and Chemical Sectors. Compared to the same quarter of 2002, exports
declined 5.6% from US$228 million in 1Q02 to US$216 million in 1Q03. This result
is due to the 25.7% decline in the Autoparts Sector, which was not offset by the
57.9% and 2.4% increases in the Chemical and Food Sectors, respectively. During
the quarter, exports represented 45.8% of total sales.
OPERATING INCOME (LOSS), MARGIN AND EBITDA
------------------------------------------
Compared to the fourth quarter of 2002, operating income increased more than
100% from a US$17 million loss to a US$20 million income. Compared to 1Q02
operating income declined 48.7%.
EBITDA for the first quarter was US$51 million, a 183.3% increase when compared
to the previous quarter. Compared to the same quarter of 2002, EBITDA declined
27.1%.
TAXES
-----
During the quarter, tax provisions were US$10 million, which included Income and
Asset Taxes and Employee Profit Sharing. Deferred taxes had a net effect in the
amount of US$2 million.
NET MAJORITY INCOME (LOSS)
--------------------------
Net majority loss for the first quarter of 2003 was US$30 million, as a result
of exchange rate losses.
DEBT STRUCTURE
--------------
At the close of the first quarter of 2003, Desc's results posted a significant
improvement when compared to the fourth quarter of 2002. However, due primarily
to the effects derived from the depreciation of the peso/dollar exchange rate
during 1Q03, Desc did not achieve the leverage ratio target set forth in the
credit contracts signed with Citibank N.A. and a bank syndicate on June 10, 2002
and with BBVA Bancomer S.A. and a bank syndicate on May 27, 2002. All other
contractual obligations have been met, including interest and principal
payments.
6
To date, Desc has informed these lenders that it has not met the leverage ratio
and is negotiating a corresponding waiver with the lenders.
During 1Q03, Desc registered a net debt increase of US$33 million when compared
to 4Q02, due to the reduction in cash levels generated mainly by higher working
capital requirements and dividend payments.
TABLE 2. DEBT BREAKDOWN
-----------------------
(Figures in millions of U.S. dollars)
--------------------------------------------------------------------------------
MAR. 31 JUNE 30 SEPT. 30 DEC.31 MAR. 31
2002 2002 2002 2002 2002
--------------------------------------------------------------------------------
Cash Flow 160 214 163 232 103
--------------------------------------------------------------------------------
Total Debt 1,103 1,143 1,083 1,178 1,082
--------------------------------------------------------------------------------
Net Debt 943 929 920 946 979
--------------------------------------------------------------------------------
Interest Coverage 3.4x 3.8x 3.8x 3.4x 3.0x
--------------------------------------------------------------------------------
Leverage Ratio 3.2x 3.3x 3.4x 4.4x 4.9x
--------------------------------------------------------------------------------
At the end of the first quarter of 2003, the debt composition was 69%
dollar-denominated and 31% peso-denominated. The average cost of debt was 4.5%
in dollars and 9.7% in pesos, compared to 4.8% and 10.4%, respectively in 1Q02.
RESULTS BY SECTOR
-----------------
AUTOPARTS SECTOR [AUTOPARTS SECTOR LOGO]
The following table (Table 3) shows the figures obtained in the Autoparts
Sector.
TABLE 3. DESC AUTOMOTRIZ FIGURES
--------------------------------
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
--------------------------------------------------------------------------------
1Q03 1Q03
vs. vs.
1Q03 1Q02 1Q02 4Q02* 4Q02
--------------------------------------------------------------------------------
Sales (Ps.) 1,947 2,298 -15.3% 1,716 13.4%
--------------------------------------------------------------------------------
SALES (US$) 179 238 -24.7% 166 8.2%
--------------------------------------------------------------------------------
EXPORTS (US$) 117 157 -25.7% 102 14.1%
--------------------------------------------------------------------------------
Operating Income (Ps.) 116 256 -54.7% -95 NA
--------------------------------------------------------------------------------
OPERATING INCOME (US$) 11 27 -59.9% -9 NA
--------------------------------------------------------------------------------
Operating Margin 6.0% 11.2% -5.5%
--------------------------------------------------------------------------------
EBITDA (Ps.) 299 422 -45.6% 110 NA
--------------------------------------------------------------------------------
EBITDA (US$) 28 44 -37.0% 11 NA
--------------------------------------------------------------------------------
* Actual results in pesos based on audited financials.
Q-o-Q sales increased 8.2% and operating income went from a US$9 million loss to
an income of US$11 million. This was due to the 65.3% increase in sale volumes
in propeller shafts and 23.6% in axles, while front half-axles started being
manufactured as a result of the Tractor Project.
7
Sales for the quarter declined 24.7% when compared to 1Q02 mainly due to the
inertia in the automotive industry at the end of 2002. As a result, sales
volumes remained low reflecting the decline in orders from OEMs in the U.S. and
Mexico, the continued temporary shutdown in some assembly plants (GM, FORD,
NISSAN, VW and DAIMLERCHRYSLER) with the purpose of adjusting inventories and
the closing of the DaimlerChrysler Lago Alberto plant, which impacted the axle,
propeller shaft and pick-up box businesses.
As a result of the above, operating income was US$11 million while operating
margin reached 6.0%.
The variation in volumes sold in 1Q03, compared to the same quarter of 2002,
reflect the increase in aluminum wheels by 108.0%, cv joints by 16.4%, tappets
by 63.3%, and output shafts - a new export product derived from the Tractor
Project - by 100%,
Compared to the first quarter of 2002, the most significant volume declines were
registered in transmissions components 19.6%, pick-up boxes 59.9%, axles 50.0%,
pistons 33.3%, light transmissions 23.9%, heavy-duty transmissions 31.0% and
steel wheels 14.7%.
Exports during 1Q03 increased 14.1% compared to 4Q02 from US$102 million to
US$117 million. Y-o-Y exports declined 25.7%.
The average capacity utilization of the transmissions, stamping, axles and cv
joints businesses was approximately 54.0%.
Sales per employee increased to US$111.4 thousand, from US$110.4 thousand in the
same period of the previous year. This improvement reflects the layoffs that
took place during 2002.
Mexico's total vehicle production, accumulated as of March 2003, was 400,944
units, which represents a 14.0% decline when compared to the same period of
2002.
CHEMICAL SECTOR [CHEMICAL SECTOR LOGO]
The following table (Table 4) shows the figures obtained in the Chemical Sector.
8
TABLE 4. CHEMICAL SECTOR FIGURES
--------------------------------
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
--------------------------------------------------------------------------------
1QO3 1QO3
vs. vs.
1Q03 1Q02 1Q02 4Q02* 4Q02
--------------------------------------------------------------------------------
Sales (Ps.) 2,036 1,490 36.7% 1,788 13.9%
--------------------------------------------------------------------------------
SALES (US$) 187 154 21.2% 173 8.5%
--------------------------------------------------------------------------------
EXPORTS (US$) 73 46 57.9% 64 14.7%
--------------------------------------------------------------------------------
Operating Income (Ps.) 40 83 -51.6% 3 NA
--------------------------------------------------------------------------------
OPERATING INCOME (US$) 4 9 -57.4% 0 NA
--------------------------------------------------------------------------------
Operating Margin 2.0% 5.6% 0.2%
--------------------------------------------------------------------------------
EBITDA (Ps.) 132 156 -15.1% 110 19.9%
--------------------------------------------------------------------------------
EBITDA (US$) 12 16 -24.8% 11 14.2%
--------------------------------------------------------------------------------
* Actual results in pesos based on audited financials.
During the quarter sales increased 21.2% compared to 1Q02, as a result of the
repositioning of inventories by some clients mainly in Europe and the U.S. in
the rubber solution and polystyrene businesses. On one hand, the phosphates
business benefited from the demand derived from detergent production, which was
higher than expected. On the other hand, sales from the adhesive and
waterproofing businesses declined due to the lower activity in government
construction projects.
The combination of the pressure on sales prices as a result of the global
oversupply of petrochemicals and the increase in the prices of main raw
materials and energy products, which were not able to be passed on completely to
sales prices, affected the operating income and EBITDA which reached US$4
million and US$12 million, representing a decline of 57.4% and 24.8%,
respectively. Q-o-Q sales increased 8.5% and operating margin went from 0.2% to
2.0% in 1Q03.
Capacity utilization in the Chemical Sector surpassed 90%, despite the tight
margins. Operating margins are expected to recover when pressures on raw
material prices decline.
Exports for the quarter increased 57.9% from US$46 million in 1Q02 to US$73
million in 1Q03. This increase partially offset the decline in demand from the
Mexican market.
9
FOOD SECTOR [FOOD SECTOR LOGO]
The following table (Table 5) shows the figures obtained in the Food Sector.
TABLE 5. FOOD SECTOR FIGURES
----------------------------
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
--------------------------------------------------------------------------------
1QO3 1QO3
vs. vs.
1Q03 1Q02 1Q02 4Q02* 4Q02
--------------------------------------------------------------------------------
Sales (Ps.) 907 874 3.7% 905 0.2%
--------------------------------------------------------------------------------
SALES (US$) 83 91 -8.0% 87 -0.4%
--------------------------------------------------------------------------------
EXPORTS (US$) 26 25 2.4% 21 19.5%
--------------------------------------------------------------------------------
Operating Income (Ps.) 9 7 33.2% -3 NA
--------------------------------------------------------------------------------
OPERATING INCOME (US$) 1 1 14.9% 0 NA
--------------------------------------------------------------------------------
Operating Margin 1.0% 0.8% -0.3%
--------------------------------------------------------------------------------
EBITDA (Ps.) 48 54 -9.9% 41 17.0%
--------------------------------------------------------------------------------
EBITDA (US$) 4 6 -20.4% 4 11.4%
--------------------------------------------------------------------------------
* Actual results in pesos based on audited financials. Includes the
non-recurring effects of the closing of the Bajio region operations.
The following table provides the operating margins of the branded products and
pork businesses
TABLE 6. FOOD SECTOR - RELEVANT FIGURES
---------------------------------------
* The Pork Business includes the Bajio region operations.
--------------------------------------------------------------------------------
Sales (millions of US$) 54 48 12.0%
--------------------------------------------------------------------------------
OPERATING MARGIN 1.0% 4.7%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales (millions of US$) 29 43 -32.5%
--------------------------------------------------------------------------------
OPERATING MARGIN 1.2% -4.4%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sales (millions of US$) 83 91 -8.0%
--------------------------------------------------------------------------------
OPERATING MARGIN 1.0% 0.8%
--------------------------------------------------------------------------------
10
BRANDED PRODUCTS
The 12.0% increase in sales of branded products Y-o-Y reflects the solid
performance of the "Del Fuerte" tomato puree brand, the "Embasa" ketchup style
salsa brand and the increase in coffee exports to the U.S., coupled with the 9%
average increase in all product categories and a 21.0% increase in the "La
Gloria" corn oil brand. In addition, it reflects a market share increase in all
the products in the local and U.S. markets.
In addition, revenues were benefited by the new line of "Del Fuerte" chile and
salsa as well as the distribution of "Ybarra" canned tuna. These factors have
helped to compensated the drop in economic activity in Mexico and the U.S.
The operating margin declined from 4.7% during 1Q02 to 1.0% in 1Q03 due to the
significant increase in the cost of the main raw materials which was not offset
by the previously mentioned price increases.
PORK BUSINESS
During the quarter, sales in the Pork Business declined 32.5% compared to the
same period of 2002 due to the closing of the Bajio region operations. The
operating margin was 1.2% which was above the -4.4% reported in 1Q02, as a
result of the closing of the Bajio region operations.
GRAPH 2: NATIONAL PORK PRICE
[Graph Displaying National Pork Prices. Source is national market information
systems (SECOFI).]
The depreciation of the peso versus the dollar negatively impacted the results
since some of the raw materials used for the production of feed maintained its
price related to the dollar.
Sales volumes from the Southeast operations increased 2.7% compared to 1Q02 and
capacity utilization was 100%.
REAL ESTATE SECTOR [REAL ESTATE SECTOR LOGO]
Following are the results for the real estate sector for the first quarter of
2003:
11
TABLE 7. DINE FIGURES
---------------------
(Figures in millions of constant pesos (Ps.) and U.S. dollars (US$))
--------------------------------------------------------------------------------
1QO3 1QO3
vs. vs.
1Q03 1Q02 1Q02 4Q02* 4Q02
--------------------------------------------------------------------------------
Sales (Ps.) 233 227 2.8% 37 NA
--------------------------------------------------------------------------------
SALES (US $) 21 24 -9.7% 4 NA
--------------------------------------------------------------------------------
Operating Income (Ps.) 58 32 83.9% -30 NA
--------------------------------------------------------------------------------
OPERATING INCOME (US $) 5 3 58.4% -3 NA
--------------------------------------------------------------------------------
Operating Margin 24.7% 14.1% -80.9%
--------------------------------------------------------------------------------
EBITDA (Ps.) 64 37 71.1% -29 NA
--------------------------------------------------------------------------------
EBITDA (US $) 6 4 48.0% -3 NA
--------------------------------------------------------------------------------
* Actual results in pesos based on audited financials.
Sales in 1Q03 reached US$21 million, a decline of 9.7% when compared to 1Q02,
reflecting sales from the Punta Mita and Bosques de Santa Fe projects, which
contributed approximately 71.0% and 25.0% of the revenue for the quarter,
respectively.
Compared to the previous quarter, the results from the real estate sector
significantly recovered due to the sale of lots in the projects mentioned above.
Operating income reached US$5 million while the operating margin increased to
24.7% from 14.1% during 1Q02. This result was mainly due to the sales mix, since
the lots from Punta Mita represent one of the products with the highest
profitability for the Sector. For this reason an intense effort has been made
regarding the sale and promotion of the large lots denominated "Ranchos" and the
residential lots with ocean and golf course views.
12
CONTACTS: MARISOL VAZQUEZ-MELLADO
ALEJANDRO DE LA BARREDA / CAROLINA RENDON
TEL.: (5255) 5261 8037
ABARREDAG@MAIL.DESC.COM.MX
** Tables to Follow **
--------------------------------------------------------------------------------
FINANCIAL INDICATORS
1Q03 4Q02 3Q02 2Q02 1Q02
--------------------------------------------------------------------------------
Interest Coverage 3.0x 3.3x 3.8x 3.8x 3.4x
--------------------------------------------------------------------------------
Leverage Ratio 4.9x 4.4x 3.4x 3.3x 3.2x
--------------------------------------------------------------------------------
Short-Term Debt 23% 28% 20% 26% 35%
--------------------------------------------------------------------------------
Long-Term Debt 77% 72% 80% 74% 65%
--------------------------------------------------------------------------------
Peso-denominated debt 31% 39% 32% 31% 23%
--------------------------------------------------------------------------------
Dollar-denominated debt 69% 61% 68% 69% 77%
--------------------------------------------------------------------------------
------------------------------------------------------------------
OUTSTANDING SHARES
------------------------------------------------------------------
"A" Shares 587,479,900 42.9%
------------------------------------------------------------------
"B" Shares 506,257,866 37.0%
------------------------------------------------------------------
"C" Shares 275,341,610 20.1%
------------------------------------------------------------------
TOTAL 1,369,079,376 100.0%
------------------------------------------------------------------
13
-----------------------------------------------------------------------------------------------------------------------------------
DESC, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Balance Sheet
(In millions of constant pesos, as of March 31, 2003)
------------------------------------------------------------------------------------------------------------------------------------
2003 2002 %
------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and Short Term Investments 1,106 1,529 -27.6%
Account and Documents Receivable (net) 4,943 3,921 26.1%
Inventories and Other Assets 2,989 3,033 -1.5%
TOTAL CURRENT ASSETS 9,038 8,483 6.5%
------------------------------------------------------------------------------------------------------------------------------------
Land held for development and real estate projects 4,317 3,951 9.3%
Fixed Assets 13,257 12,928 2.5%
Investments in shares of Subsidiaries Non Consolidated 110 166 -33.7%
Other Assets 2,631 2,859 -7.9%
TOTAL ASSETS 29,353 28,387 3.4%
------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Current Liabilities:
Banks Loans 2,706 3,738 -27.6%
Suppliers 1,968 1,759 11.9%
Taxes to be paid 800 393 103.6%
Other Liabilities 1,521 1,348 12.8%
TOTAL CURRENT LIABILITIES 6,995 7,238 -3.4%
------------------------------------------------------------------------------------------------------------------------------------
Long-Term Debt 8,872 6,816 30.2%
Deferred taxes 1,263 1,152 9.6%
Other 582 446 30.5%
TOTAL LIABILITIES 17,712 15,652 13.2%
------------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
Capital Stock 18 18 0.0%
Paid-in Surplus 1,170 1,170 0.0%
Retained Earnings and Reserve for Repurchase of Shares 20,234 21,414 -5.5%
Other -13,653 -13,850 -1.4%
TOTAL MAJORITY INTEREST 7,769 8,752 -11.2%
Minority Interest 3,872 3,983 -2.8%
TOTAL STOCKHOLDERS' EQUITY 11,641 12,735 -8.6%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 29,353 28,387 3.4%
-----------------------------------------------------------------------------------------------------------------------------------
14
------------------------------------------------------------------------------------------------------------------------------------
DESC, S.A. DE C.V. AND SUBSIDIARIES
Consolidated Income Statements
(In millions of constant pesos, as of March 31, 2003)
------------------------------------------------------------------------------------------------------------------------------------
1Q03 1Q02 Var.
------------------------------------------------------------------------------------------------------------------------------------
Net Sales 5,126 4,892 4.8%
Cost of Sales 4,021 3,677 9.4%
GROSS PROFIT 1,105 1,215 -9.1%
------------------------------------------------------------------------------------------------------------------------------------
Operating Expenses
Administrative and Selling Expenses 887 841 5.5%
OPERATING INCOME 218 374 -41.8%
------------------------------------------------------------------------------------------------------------------------------------
Interest Expense 241 226 6.5%
Interest Income (11) (46) -75.8%
Exchange Gain (loss), net 278 (117) NA
Gain on Monetary Position (75) (99) -24.6%
COMPREHENSIVE FINANCIAL RESULT 433 (36) NA
------------------------------------------------------------------------------------------------------------------------------------
OTHER EXTRAORDINARY INCOME OR EXPENSES 10 40 -75.9%
------------------------------------------------------------------------------------------------------------------------------------
INCOME BEFORE PROVISIONS (225) 370 NA
------------------------------------------------------------------------------------------------------------------------------------
Provisions for:
Income and Asset Tax 88 183 -51.9%
Employee Profit Sharing 22 39 -41.7%
Deferred Income Taxes (18) (49) NA
TOTAL TAXES 92 173 -46.5%
------------------------------------------------------------------------------------------------------------------------------------
NET CONSOLIDATED INCOME (317) 197 NA
------------------------------------------------------------------------------------------------------------------------------------
Minority Interest 6 48 -87.3%
MAJORITY NET INCOME (323) 149 NA
------------------------------------------------------------------------------------------------------------------------------------
12 months Net Income per Share (1.12) 0.00 NA
Number of shares outstanding: 1,369 1,369 NA
(Millions of shares)
EBITDA 552 671 -17.7%
------------------------------------------------------------------------------------------------------------------------------------
15
------------------------------------------------------------------------------------------------------------------------
ACUM
1Q03 2002* 4Q02 3Q02 2Q02 1Q02
------------------------------------------------------------------------------------------------------------------------
SALES (US$)
------------------------------------------------------------------------------------------------------------------------
Consolidated 471 1,978 430 490 551 507
------------------------------------------------------------------------------------------------------------------------
Autoparts Sector 179 850 166 203 243 238
------------------------------------------------------------------------------------------------------------------------
Chemical Sector 187 699 173 185 187 154
------------------------------------------------------------------------------------------------------------------------
Food Sector 83 348 87 76 94 91
------------------------------------------------------------------------------------------------------------------------
Real Estate Sector 21 78 4 24 26 24
------------------------------------------------------------------------------------------------------------------------
EXPORTS (US$)
------------------------------------------------------------------------------------------------------------------------
Consolidated 216 902 187 222 265 228
------------------------------------------------------------------------------------------------------------------------
Autoparts Sector 117 555 102 128 168 157
------------------------------------------------------------------------------------------------------------------------
Chemical Sector 73 247 64 68 69 46
------------------------------------------------------------------------------------------------------------------------
Food Sector 26 100 21 26 28 25
------------------------------------------------------------------------------------------------------------------------
OPERATING INCOME (US$)
------------------------------------------------------------------------------------------------------------------------
Consolidated 20 106 -17 36 48 39
------------------------------------------------------------------------------------------------------------------------
Autoparts Sector 11 64 -9 15 31 27
------------------------------------------------------------------------------------------------------------------------
Chemical Sector 4 33 0 11 13 9
------------------------------------------------------------------------------------------------------------------------
Food Sector 1 10 0 10 0 1
------------------------------------------------------------------------------------------------------------------------
Real Estate Sector 5 9 -3 3 6 3
------------------------------------------------------------------------------------------------------------------------
OPERATING MARGIN
------------------------------------------------------------------------------------------------------------------------
Consolidated 4.2% 5.3% -3.8% 7.3% 8.7% 7.7%
------------------------------------------------------------------------------------------------------------------------
Autoparts Sector 6.0% 7.5% -5.5% 7.4% 12.9% 11.2%
------------------------------------------------------------------------------------------------------------------------
Chemical Sector 2.0% 4.8% 0.1% 6.2% 7.0% 5.6%
------------------------------------------------------------------------------------------------------------------------
Food Sector 1.0% 2.8% -0.3% 12.6% -0.5% 0.8%
------------------------------------------------------------------------------------------------------------------------
Real Estate Sector 24.7% 11.2% -80.9% 10.6% 21.7% 14.1%
------------------------------------------------------------------------------------------------------------------------
EBITDA (US$)
------------------------------------------------------------------------------------------------------------------------
Consolidated 51 234 18 67 79 70
------------------------------------------------------------------------------------------------------------------------
Autoparts Sector 28 135 11 32 48 44
------------------------------------------------------------------------------------------------------------------------
Chemical Sector 12 68 11 20 21 16
------------------------------------------------------------------------------------------------------------------------
Food Sector 4 26 4 13 4 6
------------------------------------------------------------------------------------------------------------------------
Real Estate Sector 6 11 -3 4 6 4
------------------------------------------------------------------------------------------------------------------------
* Actual figures.
16
This press release contains "forward-looking statements" (within the
meaning of the Private Securities Litigation Reform Act of 1995) that reflect
the current views of Desc's management with respect to future events. The words
"anticipate," "believe," "estimate," "expect," "intend," "may," "plan,"
"project," and "should" and similar expressions generally are intended to
identify forward-looking statements. These statements are subject to risks,
uncertainties and changes in circumstances. Actual results may differ materially
from present expectations as a result of many factors, including, but not
limited to, changes in global and domestic political, economic, business,
competitive, market and regulatory factors, the cyclicality of the autoparts and
chemicals industries and other factors which are described under the heading
"Risk Factors" in Desc's most recent Annual Report on Form 20-F filed with the
Securities and Exchange Commission. Desc does not assume any obligation to
update these forward-looking statements. Any forward-looking statement speaks
only as of the date on which it is made.
17
EXHIBIT 2
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. SIFIC/ICS Consolidated
CONSOLIDATED BALANCE SHEET
AT DECEMBER 31 OF 2002 AND 2001
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF S CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- --------------------- -----------------------
AMOUNT % AMOUNT %
1 TOTAL ASSETS 29,306,247 100% 29,062,032 100%
2 CURRENT ASSETS 9,309,245 32% 8,589,268 30%
3 CASH AND SHORT-TERM INVESTMENTS 2,406,043 8% 1,449,173 5%
4 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 2,715,498 9% 2,880,841 10%
5 OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE 963,785 3% 891,570 3%
6 INVENTORIES 3,071,196 10% 3,348,823 11%
7 OTHER CURRENT ASSETS 152,723 1% 18,861 0%
8 LONG-TERM 4,143,236 14% 4,345,022 15%
9 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 0 0% 0 0%
INVESTMENT IN SHARES OF SUBSIDIARIES AND NON-CONSOLIDATED
10 ASSOCIATED 16,538 0% 210,268 1%
11 OTHER INVESTMENTS 4,126,698 14% 4,134,754 14%
12 PROPERTY, PLANT AND EQUIPMENT 13,161,896 45% 13,281,053 46%
13 PROPERTY 7,048,224 24% 7,514,336 26%
14 MACHINERY AND INDUSTRIAL EQUIPMENT (NET) 16,456,795 56% 15,744,909 54%
15 OTHER EQUIPMENT 1,190,653 4% 992,599 3%
16 ACCUMULATED DEPRECIATION 12,415,585 42% 11,628,695 40%
17 CONSTRUCTION IN PROGRESS 881,809 3% 657,904 2%
18 DEFERRED ASSETS (NET) 1,328,809 5% 1,377,329 5%
19 OTHER ASSETS 1,363,061 5% 1,469,360 5%
20 TOTAL LIABILITIES 17,932,309 100% 16,380,079 100%
21 CURRENT LIABILITIES 7,382,486 41% 7,586,181 46%
22 SUPPLIERS 2,007,995 11% 1,802,011 11%
23 BANK LOANS 3,502,768 20% 3,247,468 20%
24 STOCK MARKET LOANS 0 0% 0 0%
25 TAXES TO BE PAID 102,349 1% 383,659 2%
26 OTHER CURRENT LIABILITIES 1,769,374 10% 2,153,043 13%
27 LONG-TERM LIABILITIES 8,706,020 49% 7,422,773 45%
28 BANK LOANS 6,510,656 36% 5,224,911 32%
29 STOCK MARKET LOANS 2,195,364 12% 2,197,862 13%
30 OTHER LOANS 0 0% 0 0%
31 DEFERRED LOANS 1,287,982 7% 1,114,750 7%
32 OTHER LIABILITIES 555,821 3% 256,375 2%
18
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
33 CONSOLIDATED STOCK HOLDERS' EQUITY 11,373,938 100% 12,681,953 100%
34 MINORITY INTEREST 3,758,630 33% 3,862,894 30%
35 MAJORITY INTEREST 7,615,308 67% 8,819,059 70%
36 CONTRIBUTED CAPITAL 12,394,252 109% 12,394,252 98%
37 PAID-IN CAPITAL STOCK (NOMINAL) 17,798 0% 17,798 0%
38 RESTATEMENT OF PAID-IN CAPITAL STOCK 11,206,064 99% 11,206,064 88%
39 PREMIUM ON SALES OF SHARES 1,170,390 10% 1,170,390 9%
40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
41 CAPITAL INCREASE (DECREASE) -4,778,944 -42% -3,575,193 -28%
42 RETAINED EARNINGS AND CAPITAL RESERVE 20,054,688 176% 18,661,167 147%
43 REPURCHASE FUND OF SHARES 958,783 8% 958,783 8%
44 EXCESS (SHORTFALL) IN RESTATEMENT OF HOLDER'S EQUITY -24,749,282 -218% -23,238,855 -183%
45 NET INCOME FOR THE YEAR -1,043,133 -9% 43,712 0%
19
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CONSOLIDATED BALANCE SHEET
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF S CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------ -------------------
AMOUNT % AMOUNT %
3 CASH AND SHORT-TERM INVESTMENTS 2,406,043 100% 1,449,173 100%
46 CASH 420,039 17% 247,734 17%
47 SHORT-TERM INVESTMENTS 1,986,004 83% 1,201,439 83%
18 DEFERRED ASSETS (NET) 1,328,809 100% 1,377,329 100%
48 AMORTIZED OR REDEEMED EXPENSES 0% 0%
49 GOODWILL 1,328,809 100% 1,377,329 100%
50 DEFERRED TAXES 0 0% 0 0%
51 OTHERS 0 0% 0 0%
21 CURRENT LIABILITIES 7,382,486 100% 7,586,181 100%
52 FOREIGN CURRENCY LIABILITIES 4,908,091 66% 4,553,964 60%
53 MEXICAN PESOS LIABILITIES 2,474,395 34% 3,032,217 40%
24 STOCK MARKET LOANS 0 100 0
54 COMMERCIAL PAPER 0 0
55 CURRENT MATURITIES OF MEDIUM TERM NOTES 0 0
56 CURRENT MATURITIES OF BONDS 0 0
26 OTHER CURRENT LIABILITIES 1,769,374 100% 2,153,043 100%
57 OTHER CURRENT LIABILITIES WITH COST 0 0% 0 0%
58 OTHER CURRENT LIABILITIES WITHOUT COST 1,769,374 100% 2,153,043 100%
27 LONG-TERM LIABILITIES 8,706,020 100% 7,422,773 100%
59 FOREIGN CURRENCY LIABILITIES 5,184,967 60% 5,193,203 70%
60 MEXICAN PESOS LIABILITIES 3,521,053 40% 2,229,570 30%
29 STOCK MARKET LOANS 2,195,364 100% 2,197,862 100%
61 BONDS 0 0% 0 0%
62 MEDIUM TERM NOTES 2,195,364 100% 2,197,862 100%
30 OTHER LOANS 0 100% 0 100%
63 OTHER LOANS WITH COST 0 0 0
64 OTHER LOANS WITHOUT COST 0 0
31 DEFERRED LOANS 1,287,982 100% 1,114,750 100%
65 NEGATIVE GOODWILL 0 0% 0 0%
66 DEFERRED TAXES 1,287,982 100% 1,114,750 100%
67 OTHERS 0 0% 0 0%
32 OTHER LIABILITIES 555,821 100% 256,375 100%
68 RESERVES 0 0% 0 0%
69 OTHER LIABILITIES 555,821 100% 256,375 100%
44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK
HOLDERS' EQUITY -24,749,282 100% -23,238,855 100%
70 ACCUMULATED INCOME DUE TO MONETARY POSITION 0 0% 0 0%
71 INCOME FROM NON-MONETARY POSITION ASSETS -24,749,282 100% -23,238,855 100%
20
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CONSOLIDATED BALANCE SHEET
OTHER AMOUNTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF S CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------- ---------------------
AMOUNT AMOUNT
72 WORKING CAPITAL 1,926,759 1,003,087
73 PENSIONS FUND AND SENIORITY PREMIUMS 555,819 645,206
74 EXECUTIVES (*) 0 0
75 EMPLOYERS (*) 5,982 7,408
76 WORKERS (*) 10,342 11,936
77 CIRCULATION SHARES (*) 1,369,079,376 1,369,079,376
78 REPURCHASED SHARES (*) 0 0
(*) THESE AMOUNTS SHOULD BE EXPRESSED IN UNITS
21
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. SIFIC/ICS Consolidated
CONSOLIDATED INCOME STATEMENT
FROM JANUARY THE 1ST TO DECEMBER 31 OF 2002 AND 2001
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF R CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------- ---------------------
AMOUNT % AMOUNT %
1 NET SALES 19,582,937 100% 21,815,702 100%
2 COST OF SALES 14,977,545 76% 16,270,716 75%
3 GROSS INCOME 4,605,392 24% 5,544,986 25%
4 OPERATING EXPENSES 3,565,380 18% 3,781,308 17%
5 OPERATING INCOME 1,040,012 5% 1,763,678 8%
6 TOTAL FINANCING COST 1,225,192 6% 323,915 1%
7 INCOME AFTER FINANCING COST -185,180 -1% 1,439,763 7%
8 OTHER FINANCIAL OPERATIONS 130,140 1% 755,932 4%
9 INCOME BEFORE TAXES AND WORKERS' PROFIT SHARING -315,320 -2% 683,831 3%
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 242,113 1% 156,071 1%
11 NET INCOME AFTER TAXES AND WORKERS' PROFIT SHARING -557,433 -3% 527,760 2%
12 SHARE IN NET INCOME OF SUBSIDIARIES AND
NON-CONSOLIDATED ASSOCIATES (5,200) 0% 0 0%
13 CONSOLIDATED NET INCOME OF CONTINUOUS -562,633 -3% 527,760 2%
14 INCOME OF DISCONTINUOUS OPERATIONS 605,817 3% 0 0%
15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS -1,168,450 -6% 527,760 2%
16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0% 298,164 1%
17 NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN
ACCOUNTING PRINCIPLES 0 0% 0 0%
18 NET CONSOLIDATED INCOME -1,168,450 -6% 229,596 1%
19 NET INCOME OF MINORITY INTEREST -125,317 -1% 185,884 1%
20 NET INCOME OF MAJORITY INTEREST -1,043,133 -5% 43,712 0%
22
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CONSOLIDATED INCOME STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF R CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- --------------------- -------------------
AMOUNT % AMOUNT %
1 NET SALES 19,582,937 100% 21,815,702 100%
21 DOMESTIC 10,650,843 54% 11,929,364 55%
22 FOREIGN 8,932,094 46% 9,886,338 45%
23 TRANSLATED INTO DOLLARS (***) 902,039 5% 1,035,679 5%
6 TOTAL FINANCING COST 1,225,192 100% 323,915 100%
24 INTEREST PAID 948,112 77% 914,263 282%
25 EXCHANGE LOSSES 740,939 60% -223,523 -69%
26 INTEREST EARNED 65,588 5% 123,402 38%
27 EXCHANGE PROFITS 0 0% -124,336 -38%
28 GAIN DUE TO MONETARY POSITION -398,271 -33% -367,759 -114%
8 OTHER FINANCIAL OPERATIONS 130,140 100% 755,932 100%
29 OTHER NET EXPENSES (INCOME) NET 130,140 100% 755,932 100%
30 (PROFIT) LOSS ON SALE OF OWN SHARES 0% 0%
31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0% 0%
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 242,113 100% 156,071 100%
32 INCOME TAX 217,458 90% 460,407 295%
33 DEFERRED INCOME TAX -79,974 -33% -457,420 -293%
34 WORKERS' PROFIT SHARING 104,629 43% 153,084 98%
35 DEFERRED WORKERS' PROFIT SHARING 0 0% 0 0%
23
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CONSOLIDATED INCOME STATEMENT
OTHER CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF R CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------- --------------------
AMOUNT AMOUNT
36 TOTAL SALES 20,414,788 23,660,881
37 TAX RESULT 0 0
38 NET SALES (**) 19,582,937 21,815,702
39 OPERATION INCOME (**) 1,040,012 1,763,678
40 NET INCOME OF MAJORITY INTEREST (**) -1,043,133 43,712
41 NET CONSOLIDATED INCOME (**) -1,168,450 229,596
(**) THE RESTATED INFORMATION ON THE LAST TWELVE MONTHS SHOULD BE USED
24
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4: 2002
DESC, S.A. de C.V. SIFIC/ICS Consolidated
CONSOLIDATED CASH FLOW STATEMENT
FROM JANUARY THE 1ST TO DECEMBER 31 OF 2002 AND 2001
(Thousands of Pesos)
QUARTER OF QUARTER OF
PRESENT PREVIOUS
REF C CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------ -------------------
AMOUNT AMOUNT
1 CONSOLIDATED NET INCOME -1,168,450 229,596
2 +(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING CASH 1,383,206 1,186,350
3 CASH FLOW FROM NET INCOME OF THE YEAR 214,756 1,415,946
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL 661,663 2,205,763
5 CASH GENERATED (USED) IN OPERATING ACTIVITIES 876,419 3,621,709
6 CASH FLOW FROM EXTERNAL FINANCING 1,367,677 -3,703,553
7 CASH FLOW FROM INTERNAL FINANCING -540,100 -817,781
8 CASH FLOW GENERATED (USED) BY FINANCING 827,577 -4,521,334
9 CASH FLOW GENERATED (USED) IN INVESTMENT ACTIVITIES -733,726 649,323
10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS 970,270 250,302
11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 1,435,773 1,699,475
12 CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD 2,406,043 1,449,173
25
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4: 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CONSOLIDATED CASH FLOW STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
QUARTER OF QUARTER OF
PRESENT PREVIOUS
REF C CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------ ------------------
AMOUNT AMOUNT
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE 1,383,206 1,186,350
13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 1,269,144 1,349,320
14 + (-) NET INCREASE (DECREASE) IN PENSIONS FUND AND SENIORITY PREMIUMS 0 0
15 + (-) NET LOSS (PROFIT) IN MONEY EXCHANGE 0 0
16 + (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES ACTUALIZATION 0 0
17 + (-) OTHER ITEMS 114,062 -162,970
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL 661,663 2,205,763
18 + (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLE -51,894 1,130,742
19 + (-) DECREASE (INCREASE) IN INVENTORIES 51,557 630,455
20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLE 542,444 5,358
21 + (-) INCREASE (DECREASE) IN SUPPLIER ACCOUNT -135,232 251,844
22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 254,788 187,364
6 CASH FLOW FROM EXTERNAL FINANCING 1,367,677 -3,703,553
23 + SHORT-TERM BANK AND STOCK MARKET FINANCING -1,530,392 -640,500
24 + LONG-TERM BANK AND STOCK MARKET FINANCING 3,069,140 -1,716,982
25 + DIVIDEND RECEIVED 0 0
26 + OTHER FINANCING 0 0
27 (-) BANK FINANCING AMORTIZATION 0 0
28 (-) STOCK MARKET AMORTIZATION 0 0
29 (-) OTHER FINANCING AMORTIZATION -171,071 -1,346,071
7 CASH FLOW FROM INTERNAL FINANCING -540,100 -817,781
30 + (-) INCREASE (DECREASE) IN CAPITAL STOCKS 0 0
31 (-) DIVIDENDS PAID -540,100 -817,781
32 + PREMIUM ON SALE OF SHARES 0 0
33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0
9 CASH FLOW GENERATED (UTILIZED) IN INVESTMENT ACTIVITIES -733,726 649,323
34 + (-) DECREASE (INCREASE) IN STOCK INVESTMENTS OF A PERMANENT NATURE 28,024 1,187,217
35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT -1,105,034 -117,779
36 (-) INCREASE IN CONSTRUCTIONS IN PROGRESS -35,375 -739,696
37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0
38 + SALE OF TANGIBLE FIXED ASSETS 314,728 403,803
39 + (-) OTHER ITEMS 63,931 -84,222
26
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4 2002
DESC, S.A. de C.V. SIFIC/ICS Consolidated
RATIOS
CONSOLIDATED
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF P CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------ -------------------
YIELD
1 NET INCOME TO NET SALES -5.97 % 1.05 %
2 NET INCOME TO STOCK HOLDERS' EQUITY (**) -13.7 % 0.5 %
3 NET INCOME TO TOTAL ASSETS (**) -3.99 % 0.79 %
4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 2.35 % 0.72 %
5 INCOME DUE TO MONETARY POSITION TO NET INCOME -34.09 % 160.18 %
ACTIVITY
6 NET SALES TO NET ASSETS (**) 0.67 Times 0.75 Times
7 NET SALES TO FIXED ASSETS (**) 1.49 Times 1.64 Times
8 INVENTORIES ROTATION (**) 4.88 Times 4.86 Times
9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 44 Days 41 Days
10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 7.77 % 8.57 %
LEVERAGE
11 TOTAL LIABILITIES TO TOTAL ASSETS 61.19 % 56.36 %
12 TOTAL LIABILITIES TO STOCK HOLDERS' EQUITY 1.58 Times 1.29 Times
13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 56.28 % 59.51 %
14 LONG-TERM LIABILITIES TO FIXED ASSETS 66.15 % 55.89 %
15 OPERATING INCOME TO INTEREST PAID 1.10 Times 1.93 Times
16 NET SALES TO TOTAL LIABILITIES (**) 1.09 Times 1.33 Times
LIQUIDITY
17 CURRENT ASSETS TO CURRENT LIABILITIES 1.26 Times 1.13 Times
18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 0.84 Times 0.69 Times
19 CURRENTS ASSETS TO TOTAL LIABILITIES 0.52 Times 0.52 Times
20 AVAILABLE ASSETS TO CURRENT LIABILITIES 32.59 % 19.1 %
CASH FLOW
21 CASH FLOW FROM NET INCOME TO NET SALES 1.10 % 6.49 %
22 CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET SALES 3.38 % 10.11 %
23 CASH GENERATED (USED) IN OPERATING TO INTEREST PAID 0.92 Times 3.96 Times
24 EXTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING 165.26 % 81.91 %
25 INTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING -65.26 % 18.09 %
26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO CASH GENERATED
(USED) IN INVESTMENT ACTIVITIES 150.61 % -18.14 %
(**) IN THESE RATIOS, DATA IS BASED ON THE LAST TWELVE MONTHS
27
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. SIFIC/ICS Consolidated
DATA PER SHARE
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF D CONCEPTS FISCAL YEAR [2002] FISCAL YEAR [2001]
----- -------- ------------------ --------------------
AMOUNT AMOUNT
1 BASIC PROFIT PER ORDINARY SHARE (**) $ -0.76 $ 0.35
2 BASIC PROFIT PER PREFERENT SHARE (**) $ 0 $ 0
3 DILUTED PROFIT PER ORDINARY SHARE (**) $ 0 $ 0
4 CONTINUOUS OPERATING PROFIT PER COMMON SHARE(**) $ -0.41 $ 0.35
5 EFFECT OF DISCONTINUOUS OPERATING ON CONTINUOUS OPERATING $ -0.44 $ 0.00
PROFIT PER SHARE (**)
6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUS $ 0 $ 0
OPERATING PROFIT PER SHARE (**)
7 EFFECT BY CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS $ 0 $ 0
OPERATING PROFIT PER SHARE (**)
8 CARRYING VALUE PER SHARE $ 5.56 $ 6.44
9 CASH DIVIDEND ACCUMULATED PER SHARE $ 0.29 $ 0.15
10 DIVIDEND IN SHARES PER SHARE 0 SHARES 0 SHARES
11 MARKET PRICE TO CARRYING VALUE 4.1 TIMES 0.79 TIMES
12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) 0 TIMES 13.74 TIMES
13 MARKET PRICE TO BASIC PROFIT PER PREFERENT SHARE (**) 0 0
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE
MONTHS
28
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
AUDITORS' NOTES
The 2001 figures correspond to those originally presented that year, without
reflecting any changes for discontinued operations.
29
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CONSOLIDATED RESULTS
The audited consolidated figures included in this report are in thousands of
pesos (Ps.) with purchasing power as of December 31, 2002, unless otherwise
stated. 2001 figures are presented as of that date and do not include the effect
of discontinued operations.
The following table includes information derived from the Income Statement of
DESC, S.A. de C.V. and its subsidiaries (the "Company").
--------------------------------------------------------------------------------------------------------------------
Year ended December 31,
-----------------------
2001 2002
---- ----
--------------------------------------------------------------------------------------------------------------------
Net Sales Ps. 21,815,702 Ps. 19,582,937
Cost of Sales 16,270,716 14,977,545
Gross Margin 25.4% 23.5%
Operating Expenses Ps. 3,781,308 Ps. 3,565,380
Operating Profit 1,763,678 1,040,012
Operating Margin 8.1% 5.3%
Comprehensive Financial Result Ps. 323,915 Ps. 1,225,192
Equity in Associated Companies and (120,589) (5,200)
Unconsolidated Subsidiaries
Other Expenses, Net 537,995 130,140
Provisions for Income Tax and Employee Profit Sharing 156,071 242,113
Net Majority Income 43,712 (1,043,133)
Depreciation and Amortization 1,276,687 1,269,144
Capital Expenditures and Other Investments, including Acquisitions 1,499,880 1,495,298
Exports (Millions of U.S. dollars) 979.8 902.0
--------------------------------------------------------------------------------------------------------------------
30
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
2002 Compared to 2001
Consolidated net sales for 2002 decreased 10.2% to Ps. 19,582,937 compared to
Ps. 21,815,702 in 2001. Exports reached $902 million U.S. dollars, representing
a 7.9% annual decrease. These decreases were mainly due to the economic
slowdown, which started in 2001 and continued in 2002, and caused important
effects in the U.S. and Mexico, consequently decreasing DESC's results,
primarily in the Autoparts and Chemical Sectors. These decreases are also due to
an approximate 5.8% decrease in production the North American auto industry, as
well as higher raw materials costs, which were not passed on to final product
prices at the same rate.
Cost of sales decreased 7.95% to Ps. 14,977,545 during 2002, from Ps. 16,270,716
in 2001. This decrease was lower than the decrease in sales, due to the cost
reduction programs implemented throughout the year.
Gross Margin was 23.5%, which was lower than the 25.4% margin reported in 2001.
Operating expenses decreased 5.7% to Ps. 3,565,380 in 2002, compared to Ps.
3,781,308 in 2001, due to cost reduction programs.
AUTOPARTS SECTOR
--------------------------------------------------------------------------------------------
Year ended December 31,
-----------------------
2001 2002
---- ----
--------------------------------- -------------------------- --------------------------------
Net Sales Ps. 9,933,611 Ps. 8,398,394
Cost of Sales 7,521,370 6,615,119
Gross Margin 24.3% 21.2%
Operating Expenses Ps. 1,321,022 Ps. 1,163,785
Operating Profit 1,091,219 619,490
Operating Margin 11.0% 7.4%
Depreciation and Amortization Ps. 717,449 Ps. 705,140
Capital Expenditures 323,085 775,192
Exports (Millions of U.S. dollars) 638.1 554.9
--------------------------------- ------------------------- --------------------------------
31
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
2002 Results
The complex macroeconomic environment affected the results of the Autoparts
Sector. Lower economic activity in North America caused inconsistent cycles in
automotive production within the NAFTA region, where discounts were applied to
achieve reductions in inventories levels.
Specifically, automotive production within the NAFTA region improved 5.6%,
resulting in 16.7 million units, due to discounts granted to consumers
throughout the year, with the car and medium trucks segments being the most
important. On the other hand, for the second year in a row, automotive
production in Mexico registered a decline of 1.8 million units. Although
production in the domestic market presented positive growth, it was not enough
to compensate for the setback in the production of vehicles for export caused by
the economic situation in United States, our most important commercial partner
and the destination of Mexican vehicles for export.
During the year, the North American big three producers (original equipment
maker) represented 49% of our sales; losing 7% market share against the Asian
and European producers.
In the third quarter of 2002, Daimler-Chrysler closed its plant located in Lago
Alberto, Mexico City, to which DESC provided mainly pick-up beds, axles and
propeller shafts. This translated into a decline of approximately $130 million
in annual sales.
As a result of the aforementioned, sales in the sector decreased 13.7%, to US
$850 million, when compared to the prior year. Exports to more than 20
countries in the world constituted 65% of total sales, and the goal is to
diversify our markets.
In 2002, the sector generated EBITDA of US $135 million, equivalent to 15.9% of
sales.
DESC Automotriz reached an agreement with its partner, Dana Corporation, to
initiate two new projects. The projects consist of transferring the production
of diverse components of the drive train to Mexico and were named "Project
Tractor".
It is important to mention that capital expenditures during the 2002, rose to US
$52 million and were primarily used for the launching of new products related to
"Project Tractor". These include, modernization and maintenance projects,
balance of capacity and automation in the constant velocity joint business and
the installation of a forge (Forjas Spicer). These investments allowed us to
have the latest technology and to bring operations to a world-class level.
In 2002, as part of our strategy to sell non-strategic assets, the operations of
the Spark Plugs (Bumex) and Electric Parts (IEA) businesses were closed and the
operative assets were sold. Total sales from these businesses represented US
$16.2 million in 2001 and did not contribute to operating income.
32
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CHEMICAL SECTOR
-------------------------------------------------------------------------------------------
Year ended December 31,
-----------------------
2001 2002
---- ----
------------------------------------------------------------------ ------------------------
Net Sales Ps. 7,260,119 Ps. 6,936,483
Cost of Sales 5,452.234 5,261,413
Gross Margin 24.9% 24.1%
Operating Expenses Ps. 1,303,741 Ps. 1,346,692
Operating Profit 504,144 328,378
Operating Margin 6.9% 4.7%
Depreciation and Amortization Ps. 318,359 Ps. 343,376
----------------------------
Capital Expenditures 253,549 268,219
Exports (Millions of U.S. dollars) 228.7 247.1
----------------------------------------------------------------- -------------------------
2002 Results
In 2002, the Chemical Sector experienced a slight reduction of 2.9%, in its
sales in dollars when compared to 2001, reaching US $699 million. However,
exports increased 8%, reaching US $247 million. This increase in exports
partially compensated for the decrease in demand in the Mexican markets.
The weakened markets and the rise in the price of raw materials such as styrene
monomer, butadiene monomer and acrylonitrile monomer, as well as natural gas
severely affected the industry in general. The rise in raw material prices could
not be passed on to final product prices at the same rate due to aggressive
competition and weakened demand, which affected operating results. As a result
of the aforementioned, the operating margin in 2002 was 4.8%, which was lower
than the 6.9% registered in 2001.
It is important to note that these factors also affected several global chemical
companies resulting in a decline in operating income when compared to 2001.
Additionally, in the domestic market, the closing of the Euzkadi tire-production
facility, as well as, the structural crisis in the footwear industry, caused
additional reductions in the industrial demand level.
In 2002, the Sector continued with the implementation of several strategies in
order to control the critical supply of some raw materials, thereby avoiding
negative impacts due to the temporary or definitive closing of some supply
sources. As part of the portfolio restructuring, which is based on the sale of
non-core assets, the natural pigments business (Bioquimex) was closed.
The research efforts of the Sector are concentrated on the development of
specialty products. The new styrenic and acrylic transparent copolymers and high
impact resistant acrylic sheets are good examples of improvements in the margin
33
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
of the mixture of products of their respective business. At the end of 2001, the
sector began to use a miniaturized and robotic system contracted with Symyx
Technologies, and established a strategic technological platform from which to
compete in the Chemical Industry in the XXI century.
Investments for the year reached US $18.3 million and were primarily focused on
projects to improve the productivity and efficiency of solution rubbers,
polystyrene and particle boards, the relocation of the production of
polyurethane adhesives to the Lerma facility, and the acquisition of the rights
of the forest plantation Planfosur to guarantee the cellulosic supply for the
production of particle boards, and the system of experimentation of Symyx.
Last year there was a shortage of cellulosic supply due to the closing of
sawmills. The acquisition of the forest plantations in 2001, which are operated
by the company Forestaciones Operativas de Mexico, guaranteed the supply of this
raw material for the production of particle boards.
FOOD SECTOR
------------------------------------- --------------------------------------------------------
Year ended December 31,
-----------------------
2001 2002
---- ----
------------------------------------- --------------------------- ----------------------------
Net Sales Ps. 3,748,296 Ps. 3,445,214
Cost of Sales 2,844,516 2,666,619
Gross Margin 24.1% 22.6%
Operating Expenses Ps. 825,089 Ps. 680,124
------------------------------------- --------------------------- ----------------------------
Operating Profit 78,691 98,471
Operating Margin 2.1% 2.9%
Depreciation and Amortization Ps. 175,321 Ps. 164,724
Capital Expenditures 178,342 30,161
Exports (Millions of U.S. dollars) 113.0 100.0
------------------------------------- --------------------------- ----------------------------
2002 Results
Sales registered US $348 million, a decrease of 6.6 % compared to US $373
million in 2001. EBITDA remained in-line with 2001 figures reaching US $26
million.
Branded Products:
During 2002, results improved significantly due to measures taken in the
development of new strategies and cost reductions, generating a growth in sales
of 3.3% and 29.7% in cash flow (dollars).
US food brands "La Victoria" and "Embasa" posted impressive sales increases
given the flat to declining food industry trends in 2002. Combined, both brands
grew by 5.8% over the previous year.
34
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
Products derived from tomatoes, branded under "Del Fuerte", increased their
market share by five percentage points, demonstrating their leadership and the
preference for the brand among the Mexican consumers. The canned tuna brand
"Nair", increased sales over the previous year, while the coffee brand "Blason"
is considered a premium product among the line of toasted and granulated
coffees. During 2002, a new line of chiles and salsas under the brand "Del
Fuerte", was introduced in most of the supermarkets chains in Mexico.
Pork:
The Pork business reported sales of US $130 million. Exports to Japan grew 21.9%
compared to the previous year as supermarket and "foodservice" participation
increased in an important way in Mexico.
The results of the pork business can be attributed to the poor results in the
Bajio region, as well as at the high costs, low production and efficiency
levels, and higher mortality in the animals of this area. During the third
quarter of 2002, the Board of Directors of DESC made the decision to close down
the operations in the Bajio region in September 2002.
2002 results were also affected by the drop in the price of pork by
approximately 22.0% and to a lesser extent, by Hurricane Isidore, which caused
farm damage as well as decreases in efficiency production. The insurance company
mitigated the damage caused.
Shrimp: The Board of Directors of DESC made the decision to donate the shrimp
business (AquaNova) to the Instituto Tecnologico y de Estudios Superiores de
Monterrey (ITESM) in October of 2002.
REAL ESTATE SECTOR
----------------------------------------------------------------------------------------------
Year ended December 31,
-----------------------
2001 2002
---- ----
----------------------------------------------------------------------------------------------
Net Sales
Residential Ps. 327,823 Ps. 345,943
Tourism 282,495 230,629
Commercial 242,916 192,191
Total 853,234 768,763
Cost of Sales 452,466 429,532
Gross Margin 47.0% 44.1%
Operating Expenses Ps. 247,418 Ps. 252,698
Operating Income 153,350 86,533
Operating Margin 18.0% 11.3%
Depreciation and Amortization Ps. 37,618 Ps. 22,513
Capital Expenditures 2,649 24,023
Investment in Real Estate Projects 739,690 393,286
----------------------------------------------------------------------------------------------
35
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
2002 Results
In 2002, the real estate sector, as with the rest of DESC's sectors, was
affected by the slow recovery of the North American and domestic economy. This
year, the Sector registered sales of US $78 million, which represented a
decline of 8.5% compared to the US $85 million registered in 2001. The decrease
in sales was caused by the economic factors mentioned above and delayed sales in
the "Punta Mita" and "Bosques de Santa Fe" projects into the year 2003.
The operating margin registered 11.1% and EBITDA decreased 40.6%, from US $19
million in 2001 to US $11 million in 2002. This decrease was caused by a sales
mix with lower margins.
Significant milestones were achieved in the tourist areas. The Punta Mita
development continued successfully with the structure of commercialization of
the diverse real estate products being offered coupled with the ability to close
various operations with several dimensions and characteristics. Sales continued
on the lots denominated "Ranchos", which are properties with an area of
approximately one hectare, near the seashore. Sales of lots adjacent to the golf
course and beach lots which constitute the product with the highest development,
continued.
Significant progress has been made in residential developments. The urbanization
and commercialization of "Bosques de Santa Fe", a 200-hectare project located in
the southern part of Santa Fe in Mexico City, is successfully undergoing with
the sales of over 80% of the residential lots and 42% of the multi-family lots.
At the moment, there are more than 20 houses and 40 apartments under
construction. Several families are already living in the development and have
integrated the development operational structure.
Due to the great success of the Arcos Bosques North Building "B", at the end of
2001 we began the construction of the North Building "C". This project, which
construction continued throughout 2002, has a total area of 43,000 m2 and a
saleable area of 16,500 m2. This is project which is expected to be concluded by
the end of 2003, is being developed in 50-50 association with ICA. Currently,
70% of the project has been completed and 20% has been pre-sold.
In addition to "Bosques de Santa Fe", we continued promoting the residential
lots of "La Estadia", "Punta Ixtapa" and "La Punta Bosques" (the number of
available lots are one in "Punta Bosques", two in "Punta Ixtapa" and 14 in "La
Estadia") achieving a good number of operations in spite of the difficult
economic situation in 2002.
COMPREHENSIVE FINANCIAL RESULT
The income statement of the company, which complies with the Generally Accepted
Accounting Principles in Mexico (MEXICAN GAAP), should indicate all the
operations and financial effects including inflation. The comprehensive
financial result includes: i) interest expense, ii) interest income on temporary
36
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
investments, iii) foreign exchange gains or losses caused by inflation on net
monetary assets or liabilities in foreign currency, iv) UDIs fluctuations, and
v) monetary gains or losses caused by inflation over net monetary assets or
liabilities. When the Company's monetary liabilities are higher than its
monetary assets during inflationary periods, the Company generates a profit on
its monetary position. The Company's net position in foreign currency is
affected by the changes in the exchange rate (peso/dollar), which generates
foreign exchange gains or losses.
The following table provides a breakdown of the comprehensive financial result
for the periods indicated:
----------------------------------------- --------------------------------------------------------------------------
Year ended December 31,
-----------------------
2001 2002
---- ----
----------------------------------------- --------------------------------- ----------------------------------------
Interest Expense (Ps. 1,038,590) (Ps. 832,071)
Interest Income 123,401 65,588
Exchange Gain (Loss), Net 328,631 (740,939)
Variation in UDIS (105,109) (116,041)
Gain on Monetary Position 367,756 398,271
COMPREHENSIVE FINANCIAL RESULT (323,911) (1,225,192)
----------------------------------------- --------------------------------- ----------------------------------------
In 2002, the comprehensive financial result reflected a loss of Ps. 1,225,192
compared to a loss of Ps. 323,911 in 2001. This result was mainly due to the
combination of the following factors: i) a decline of 19.88% in interests paid,
from (Ps. 1,038,590) in 2001 to (Ps. 832,071) in 2002; ii) a 46.85% decrease in
interests earned from Ps. 123,401 in 2001 to Ps. 65,588 en el 2002; iii) the
exchange rate depreciated during 2002 which created an exchange rate loss of Ps.
740,939 compared to an exchange rate gain of Ps. 328,631 in 2001; iv) from the
two medium-term notes denominated in UDIS there was a (Ps. 116,041) loss in
2002, and v) in 2002 there was a 8.30% lower gain from monetary position, from
Ps. 367,756 in 2001 to Ps. 398,271 in 2002.
EQUITY IN ASSOCIATED COMPANIES AND UNCONSOLIDATED SUBSIDIARIES
The Company reported a loss from equity in associated companies and
unconsolidated subsidiaries of Ps. 5,200 in 2002 compared to a loss of Ps.
120,589 in 2001. The losses posted in 2001 were a result of the divestiture of
the shrimp business.
37
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
OTHER EXPENSES, NET
In 2002, other expenses amounted to Ps. (130,140) compared to Ps. (537,995) in
2001. The main expenses consist of the following:
- Amortization of goodwill, pre-operating expenses and patents (Ps.
113,002)
- Impairment of Fixed Assets (Ps. 49,041)
DISCONTINUED OPERATIONS
In 2002, we decided to close the following non-strategic businesses:
Spark plugs and electric parts in the Autoparts Sector, the natural pigments
business in the Chemical Sector and the Bajio region pork business in the Food
Sector.
In closing these businesses, the Company is complying with its strategy to focus
on sectors that have greater value generation potential. The cost of these
discontinued operations, recorded in the Company's results rose to (Ps.
605,817). On the other hand, the shrimp business was donated to the Instituto
Tecnologico de Estudios Superiores de Monterrey (ITESM) in October 2002.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity
The Company's cash flow generation allows it to maintain a solid liquidity
level. During 2002, Desc generated an operating cash flow of Ps. 2,309,156,
which represented an annual decline of 24.0% compared to 2001. This operating
cash flow level helped to partially offset the consolidated debt expense of the
Company, to increase the working capital for the year and complete the
investment in fixed assets. The Company's capitalization ratio at the close of
2002 was 0.48x and the interest coverage ration was 3.32x.
At the holding company level, DESC does not have any significant operations,
and, as a result, its main revenue sources are dividend payments and other
payments from its subsidiaries, which meet practically all of its cash needs.
1) Dividends
During DESC's Annual Ordinary and Extraordinary Shareholder's Meeting, which
took place on April 25, 2002, a cash dividend payment was declared of Ps. 0.29
per share, payable in four quarterly installments of Ps. 0.0725 per share in the
months of July 2002, October 2002, January 2003 and April 2003. Therefore,
during 2002, the first two installments were paid on July 25, 2002 and October
24, 2002.
38
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
- PHENOL BUSINESS FILES FOR "CONCURSO MERCANTIL"
------------------------------------------------
On March 12, 2002 Fenoquimia S.A. de C.V., which produces and markets phenol,
acetone and methylmethacrylate has filed for its "Concurso Mercantil" before the
Mexican courts. This process is similar to "Chapter 11" protection under US
bankruptcy laws.
- DESC OBTAINS A SYNDICATED LOAN TO REFINANCE DEBT
--------------------------------------------------
On June 13, 2002, DESC closed two syndicated loan contracts (one in pesos and
one in dollars) for a total of approximately US$ 410 million, which will allow
DESC to improve its debt profile.
DESC used these proceeds to replace certain bank loans, thereby optimizing the
Company's financing costs. This will also improve its debt structure, while
taking advantage of the competitive interest rates in the market and will
continue to strengthen its balance sheet, which has been characteristic of DESC
for the last five years.
These achievements were made possible due to the following two transactions:
The first transaction for US$ 275 million was divided into two tranches:
|X| Tranche A - US$97 million, 3-year maturity at a rate of LIBOR plus
137.5 basis points, and
|X| Tranche B - US$178 million, 5-year maturity at a rate of LIBOR plus
162.5 basis points.
Citibank acted as lead arranger, with JP Morgan Chase and Deutsche Bank as
Senior Arrangers. Comerica Bank and Banco Nacional de Comercio Exterior acted as
Arrangers. Other participants included Export Development Canada, the
Toronto-Dominion Bank, BBVA Bancomer, Credit Lyonnais, Credit Suisse First
Boston, HSBC Bank and Bayerische Hypo-Und Vereinsbank.
The second transaction was for Ps. 1,300 million and 5-year maturity at a rate
of TIIE plus 0.90 basis points. The leading arrangers were BBVA-Bancomer and
Banco Santander Mexicano, other participants included Banorte, Invex, Comerica
Bank and Ixe Banco.
- DESC-DINE MERGER
------------------
During the General Annual Ordinary and Extraordinary Shareholders' Meeting,
which took place on April 25, 2002, the merger of DESC with its Dine subsidiary
was approved, with DESC being the surviving entity and Dine the merged company.
39
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
- CLOSE OR SALE OF NON-STRATEGIC BUSINESSES
-------------------------------------------
On July 25, DESC announced the close or sale of the following businesses:
AUTOPARTS SECTOR
Spark plugs
Electric parts
CHEMICAL SECTOR
Natural Pigments
These closings are in-line with the strategy of focusing on businesses with the
greater value generation potential.
ADMINISTRATIVE RESTRUCTURING PROCESS
------------------------------------
As part of productivity improvements, which includes administrative efficiencies
and improvements in the decision making process, the consolidation of the new
DESC structure took place during 2002. This new structure is composed of a Chief
Financial Officer, a Chief Planning and Human Resources Officer and a Chief
Information Officer. These positions will report directly to the Executive
Vice-President.
In addition, the Autoparts Sector, the Real Estate Sector, Branded Products
division (Industrias Resistol, Corfuerte and ASF), Polymers and Specialties, the
Ecosystems division, and the Grupo Porcicola Mexicano (pork business) will
report to the Executive Committee.
During the year, 3,020 employees were laid-off. This represents a 15.6%
headcount reduction from 2001. This figure includes the administrative corporate
staff in each of the Sectors.
DONATION OF BUSINESS
--------------------
In the Third Quarter of 2002, the shrimp business (AquaNova) was donated to the
Instituto Tecnologico de Estudios Superiores de Monterrey (ITESM). Through the
donation of this important national asset, DESC hopes that its 10-year effort
will be fruitful by donating the business to an institution that will look to
achieve its set objectives.
CHANGE IN THE NAME OF THE AUTOPARTS SECTOR
------------------------------------------
As part of the restructure that took place at DESC, during the fourth quarter of
2002, Unik S.A. de C.V. changed its name to DESC Automotriz, S.A. de C.V.
40
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
SIGNIFICANT ACCOUNTING POLICIES
THE ACCOUNTING POLICIES FOLLOWED BY THE COMPANY ARE IN CONFORMITY WITH MEXICAN
GAAP, WHICH REQUIRE MANAGEMENT TO MAKE CERTAIN ESTIMATES AND USE CERTAIN
ASSUMPTIONS TO DETERMINE THE VALUATION OF SOME OF THE BALANCES INCLUDED IN THE
FINANCIAL STATEMENTS AND TO MAKE THE DISCLOSURES REQUIRED FOR INCLUSION THEREIN.
ALTHOUGH ACTUAL RESULTS MAY DIFFER FROM THOSE ESTIMATES, MANAGEMENT BELIEVES
THAT THE ESTIMATES AND ASSUMPTIONS USED WERE APPROPRIATE UNDER THE
CIRCUMSTANCES.
THE SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY ARE AS FOLLOWS:
CHANGES IN ACCOUNTING POLICIES - IN 2001, THE NEW BULLETIN C-2 "FINANCIAL
INSTRUMENTS" WENT INTO EFFECT. THIS BULLETIN ESTABILSHES THE METHODOLOGY FOR
VALUING AND RECORDING FINANCIAL INSTRUMENTS AND REQUIRES RECOGNITION OF ALL
EFFECTS OF THE FINANCIAL INSTRUMENTS CONTRACTED ON THE BALANCE SHEET AS EITHER
ASSETS OR LIABILITIES, UNDER NET COMPREHENSIVE FINANCIAL RESULT. THE FINANCIAL
INSTRUMENTS THAT HAVE BEEN DESIGNATED AND EFFECTIVELY FUNCTION AS HEDGING OF
ASSETS AND LIABILITIES OR FUTURE TRANSACTIONS WILL AFFECT THE ASSETS,
LIABILITIES OR THE RESPECTIVE TRANSACTIONS WHEN THEY ARE REALIZED, SETTLED OR
TAKE PLACE, RESPECTIVELY.
AS OF 2001, INTERNATIONAL ACCOUNTING STANDARD 40, "INVESTMENT PROPERTIES,"
ENTERED INTO EFFECT ON A SUPPLEMENTAL BASIS, ESTABLISHING VALUATION CRITERIA FOR
PROPERTIES WHOSE PURPOSE IS TO GENERATE PROFITS OR INCREASE VALUE OR BOTH.
PURSUANT TO CIRCULAR 55 ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS,
THE VALUATION MODEL APPLICABLE TO MEXICO IS THE COST MODEL, WHICH ESTABLISHES
THAT SUCH PROPERTIES MUST BE VALUED AT ACQUISITION AND/OR CONSTRUCTION COST AND
ARE RESTATED BY APPLYING THE NPCI, LESS THE RESPECTIVE ACCUMULATED DEPRECIATION.
BEGINNING JANUARY 2000, THE COMPANY ADOPTED THE PROVISIONS OF NEW BULLETIN D-4,
"ACCOUNTING FOR INCOME AND ASSET TAXES AND EMPLOYEE PROFIT SHARING". THE EFFECT
OF THE ADOPTION WAS TO RECOGNIZE AN INITIAL LONG-TERM LIABILITY FOR DEFERRED
INCOME TAXES AFFECTING STOCKHOLDERS' EQUITY UNDER "CUMULATIVE EFFECT OF INITIAL
RECOGNITION OF DEFERRED INCOME TAXES."
AS A RESULT OF THE IMPLEMENTATION OF THE ADOPTION OF BULLETIN D-4 MENTIONED
ABOVE, THE COMPANY CHANGED ITS METHOD FOR RECORDING THE EFFECT FROM TAX
CONSOLIDATION. UNTIL 1999, IT WAS RECORDED IN THE YEAR IN WHICH THE RESPECTIVE
ANNUAL CONSOLIDATED TAX RETURN WAS FILED. BEGINNING IN 2000, THIS BENEFIT IS
RECORDED IN RESULTS OF THE YEAR IN WHICH THE BENEFIT IS GENERATED.
41
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
BASIS OF CONSOLIDATION - THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS
INCLUDE THOSE OF DESC AND THE SUBSIDIARIES IN WHICH THERE IS STOCKHOLDING AND
ADMINISTRATIVE CONTROL. ALL SIGNIFICANT INTERCOMPANY TRANSACTIONS AND BALANCES
HAVE BEEN ELIMINATED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS.
THE EQUITY IN NET INCOME (LOSS) AND CHANGES IN STOCKHOLDERS' EQUITY OF THOSE
SUBSIDIARIES THAT WERE ACQUIRED OR SOLD, HAS BEEN INCLUDED IN THE FINANCIAL
STATEMENTS AS OF OR UP TO THE DATE ON WHICH THE TRANSACTIONS TOOK PLACE AND WAS
RESTATED IN TERMS OF THE PURCHASING POWER AS OF THE END OF THE LATEST PERIOD.
INVESTMENTS IN SHARES OF ASSOCIATED COMPANIES AND UNCONSOLIDATED SUBSIDIARIES
ARE RECORDED USING THE EQUITY METHOD.
TRANSLATION OF FINANCIAL STATEMENTS OF SUBSIDIARIES - THE FINANCIAL STATEMENTS
OF FOREIGN SUBSIDIARIES, WHOSE OPERATIONS ARE NOT AN INTEGRAL PART OF THE
MEXICAN COMPANIES ("FOREIGN ENTITIES"), ARE RESTATED FOR THE INFLATION RATE OF
THE RESPECTIVE FOREIGN COUNTRY AND ARE TRANSLATED INTO MEXICAN PESOS AT THE
EXCHANGE RATE IN EFFECT AT THE END OF THE YEAR. THE FINANCIAL STATEMENTS OF
FOREIGN SUBSIDIARIES, WHOSE OPERATIONS ARE AN INTEGRAL PART OF THE MEXICAN
COMPANIES ("INTEGRATED FOREIGN OPERATIONS"), ARE TRANSLATED USING YEAR END
EXCHANGE RATES FOR MONETARY ITEMS AND HISTORICAL EXCHANGE RATES FOR NONMONETARY
ITEMS, AND THE TRANSLATED FINANCIAL STATEMENTS ARE THEN RESTATED USING THE
NATIONAL CONSUMER PRICE INDEX (NCPI) OF MEXICO. THE EFFECTS OF TRANSLATING
FOREIGN ENTITIES ARE RECORDED DIRECTLY IN STOCKHOLDERS' EQUITY IN THE
"CUMULATIVE EFFECT OF RESTATEMENT" ACCOUNT. THE EFFECTS OF TRANSLATING
INTEGRATED FOREIGN OPERATIONS ARE INCLUDED IN THE "INTEGRAL FINANCING RESULT" OF
THE YEAR IN THE "MONETARY POSITION GAIN" ACCOUNT. SUCH EFFECTS ARE NOT
SIGNIFICANT.
RECOGNITION OF THE EFFECTS OF INFLATION - THE COMPANIES RESTATE ALL OF THEIR
FINANCIAL STATEMENTS IN TERMS OF THE PURCHASING POWER OF THE MEXICAN PESO AS OF
THE END OF THE LATEST PERIOD, THEREBY COMPREHENSIVELY RECOGNIZING THE EFFECTS OF
INFLATION. THE PRIOR YEAR AMOUNTS PRESENTED HEREIN DIFFER FROM THOSE ORIGINALLY
REPORTED IN TERMS OF MEXICAN PESOS OF THE RESPECTIVE YEAR. CONSEQUENTLY, ALL
FINANCIAL STATEMENT AMOUNTS ARE COMPARABLE, BOTH FOR THE CURRENT AND THE PRIOR
YEAR, BECAUSE ALL ARE STATED IN TERMS OF MEXICAN PESOS OF THE SAME PURCHASING
POWER.
CASH EQUIVALENTS - INVESTMENTS IN MARKETABLE SECURITIES CONSIST MAINLY OF
ACCEPTANCES, BANK PROMISSORY NOTES, AND PAPER ISSUED BY THE MEXICAN AND UNITED
STATES OF AMERICA GOVERNMENTS, AT MARKET (COST PLUS ACCRUED INTEREST).
INVENTORIES AND COST OF SALES - INVENTORIES ARE ORIGINALLY RECORDED AT THEIR
ACQUISITION OR MANUFACTURING COST AND RESTATED TO THEIR SPECIFIC NET REPLACEMENT
42
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
COST WITHOUT EXCEEDING NET REALIZABLE VALUE. SUBSTANITALLY ALL SUBSIDIARIES
COMPUTE COST OF SALES USING THE REPLACEMENT COST AT THE TIME OF SALE.
LAND HELD FOR DEVELOPMENT AND REAL ESTATE PROJECTS - UNDEVELOPED LAND REPRESENTS
LAND RESERVES THAT, TOGETHER WITH DEVELOPED LAND AND ONGOING AND COMPLETED
PROJECTS, ARE CONSIDERED NON-CURRENT INVENTORIES, SINCE THEY ARE HELD FOR SALE.
THEY INCLUDE ACQUISITION, DEVELOPMENT AND CONSTRUCTION COSTS AND ARE RESTATED IN
U.S. DOLLARS BASED ON THE SLIPPAGE OF THE MARKET EXCHANGE RATE FOR THE PURPOSE
OF SHOWING VALUES IN ACCORDANCE WITH THE CURRENT SITUATION OF THE REAL ESTATE
MARKET.
THE COMPANY CAPITALIZES THE NET COMPREHENSIVE FINANCING COST ON DEBT USED TO
FINANCE REAL ESTATE PROJECTS IN PROGRESS, IN ADDITION TO THEIR CONSTRUCTION AND
DEVELOPMENT COSTS.
INVESTMENT IN SHARES - INVESTMENT IN SHARES HAS BEEN RECORDED USING THE EQUITY
METHOD, BASED ON THE FINANCIAL STATEMENTS PREPARED ON THE SAME BASIS AS THOSE OF
THE COMPANY, AND IS PRESENTED UNDER OTHER ASSETS IN THE BALANCE SHEET.
PROPERTY, PLANT AND EQUIPMENT - THIS ITEMS IS RECORDED AT ACQUISITION COST AND
IS RESTATED BY USING NCPI FACTORS. FOR FOREIGN FIXED ASSETS, THEIR ACQUISITION
COST IS RESTATED FOR INFLATION OF THE COUNTRY OF ORIGIN AND THE FLUCTUATION OF
THE MEXICAN PESO AGAINST SUCH CURRENCY IS CONSIDERED.
DEPRECIATION IS CALCULATED BY THE STRAIGHT-LINE METHOD BASED ON THE REMAINING
USEFUL LIVES OF THE ASSETS.
THE COMPANIES CAPITALIZE THE NET COMPREHENSIVE FINANCING COST ON DEBT USED TO
FINANCE CONSTRUCTION IN PROGRESS AND THE INSTALLATION OF EQUIPMENT, UNTIL THEY
ARE PLACED IN SERVICE.
IMPAIRMENT OF FIXED ASSETS - THE AMOUNTS SHOWN IN THE ACCOMPANYING CONSOLIDATED
STATEMENTS OF INCOME BASICALLY REFER TO THE REDUCTION IN VALUE OF PROPERTY AND
EQUIPMENT OF SOME PRODUCTION FACILITIES, IN ORDER TO REFLECT THEIR REALIZABLE
VALUE IN ACCORDANCE WITH THE CURRENT SITUATION OF SUCH BUSINESSES.
GOODWILL - THE GOODWILL RESULTING FROM ACQUISITIONS MADE IN EXCESS OF BOOK VALUE
IS AMORTIZED OVER PERIODS RANGING FROM FIVE TO 20 YEARS, THE TERMS OVER WHICH
THE BENEFITS FROM THE INVESTMENT WILL BE REALIZED.
FINANCIAL INSTRUMENTS - FINANCIAL ASSETS AND LIABILITIES RESULTING FROM ANY TYPE
OF FINANCIAL INSTRUMENT, EXCEPT FOR INVESTMENTS IN FINANCIAL INSTRUMENTS HELD TO
MATURITY, ARE PRESENTED IN THE BALANCE SHEET AT FAIR VALUE. THE EFFECTS OF THE
VALUATION OF A FINANCIAL ASSET OR LIABILITY ARE RECOGNIZED IN RESULTS OF
OPERATIONS OF THE RESPECTIVE PERIOD. INVESTMENTS IN FINANCIAL INSTRUMENTS HELD
43
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
TO MATURITY ARE VALUED AT ACQUISITION COST. THE COSTS AND YIELDS OF FINANCIAL
INSTRUMENTS ARE RECOGNIZED IN RESULTS OF THE PERIOD IN WHICH THEY OCCUR.
DERIVATE FINANCIAL INSTRUMENTS - THE INTERNAL CONTROL SYSTEM ESTABLISHED BY THE
COMPANY INCLUDES POLICIES AND PROCEDURES TO MANAGE ITS EXPOSURE TO FLUCTUATIONS
IN FOREIGN CURRENCY EXCHANGE RATES USING DERIVATIVE FINANCIAL INSTRUMENTS. THESE
INSTRUMENTS ARE TRADED ONLY WITH AUTHORIZED INSTITUTIONS AND READING LIMITS HAVE
BEEN ESTABLISHED FOR EACH INSTITUTION. THE COMPANY DOES NOT CARRY OUT
TRANSACTIONS WITH DERIVATIVE FINANCIAL INSTRUMENTS FOR THE PURPOSE OF
SPECULATION.
THE DERIVATIVE FINANCIAL INSTRUMENTS CURRENTLY USED BY THE COMPANY ARE PRIMARILY
HEDGE CONTRACTS TO REDUCE ITS EXPOSURE TO EXCHANGE RATE FLUCTUATIONS. PREMIUMS
PAID ARE AMORTIZED OVER THE TERM OF THE DERIVATIVE FINANCIAL INSTRUMENT USING
THE UNPAID BALANCE OF THE LIABILITY BEING HEDGED.
DERIVATIVE FINANCIAL INSTRUMENTS IDENTIFIED AS HEDGES ARE VALUED BY APPLYING THE
SAME VALUATION CRITERIA USED FOR THE ASSETS OR LIABILITIES HEDGED, AND THE
EFFECTS OF THEIR VALUATION ARE RECOGNIZED IN RESULTS OF OPERATIONS, NET OF
COSTS, EXPENSES, OR REVENUE FROM THE ASSETS OR LIABILITIES WHOSE RISKS ARE BEING
HEDGED. THE FINANCIAL ASSETS OR LIABILITIES GENERATED BY THESE INSTRUMENTS ARE
PRESENTED IN THE BALANCE SHEET AS A REDUCTION OF THE LIABILITIES OR ASSETS WHOSE
RISKS ARE BEING HEDGED.
INCOME TAX, ASSET TAX AND EMPLOYEE PROFIT SHARING - INCOME TAX (ISR) AND
EMPLOYEE STATUTORY PROFIT-SHARING (PTU) ARE RECORDED IN RESULTS OF THE YEAR IN
WHICH THEY ARE INCURRED. DEFERRED INCOME TAX ASSETS AND LIABILITIES ARE
RECOGNIZED FOR TEMPORARY DIFFERENCES RESULTING FROM COMPARING THE BOOK AND TAX
VALUES OF ASSETS AND LIABILITIES, PLUS ANY FUTURE BENEFITS FROM TAX LOSS
CARRYFORWARDS DEFERRED INCOME TAX ASSETS ARE REDUCES BY ANY BENEFITS THAT, IN
THE OPINION OF MANAGEMENT, WILL PROBABLY NOT BE REALIZED. DEFERRED PTU IS
DERIVED FROM TEMPORARY DIFFERENCES BETWEEN THE BOOK RESULT AND INCOME FOR PTU
PURPOSES AND IS RECOGNIZED ONLY WHEN IT CAN BE REASONABLY ASSUMED THAT THEY WILL
GENERATE A LIABILITY OR BENEFIT, AND THERE IS NO INDICATION THAT THIS SITUATION
WILL CHANGE IN SUCH A WAY THAT THE LIABILITIES WILL NOT BE PAID OR BENEFITS WILL
NOT BE REALIZED.
THE ASSET TAX PAID THAT IS EXPECTED TO BE RECOVERABLE IS RECORDED AS AN ADVANCE
PAYMENT OF INCOME TAX AND IS PRESENTED ON THE BALANCE SHEET WITH DEFERRED ISR.
EMPLOYEE RETIREMENT OBLIGATIONS - THE LIABILITY FROM SENIORITY PREMIUMS,
PENSIONS AND RETIREMENT PAYMENTS, WHICH IS SIMILAR TO A PENSION, IS RECORDED AS
ACCRUED, AND IS CALCULATED BY INDEPENDENT ACTUARIES BASED ON THE PROJECTED
CREDIT UNIT METHOD, AT REAL INTEREST RATES. THEREFORE, THE LIABILITY IS BEING
44
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
RECOGNIZED WHICH, AT PRESENT VALUE, IS EXPECTED TO COVER THE OBLIGATION FOR
THESE BENEFITS AT THE ESTIMATED RETIREMENT DATE OF ALL THE COMPANIES' EMPLOYEES.
SEVERANCE PAYMENTS ARE CHARGED TO RESULTS WHEN THEY ARE DETERMINED TO BE
PAYABLE.
RESTATED STOCKHOLDERS' EQUITY - THIS ITEM CONSISTS OF MONETARY POSITION RESULT
ACCUMULATED THROUGH THE FIRST RESTATEMENT OF THE FINANCIAL STATEMENTS AND THE
GAIN (LOSS) FROM HOLDING MONETARY ASSETS, BECAUSE PRICE LEVELS INCREASED ABOVE
(BELOW) INFLATION.
REVENUE RECOGNITION - REVENUES OF THE SUBSIDIARIES OF THE AUTOPARTS, CHEMICAL
AND FOOD SECTORS ARE RECOGNIZED WHEN THE INVENTORIES ARE DELIVERED OR SHIPPED TO
CUSTOMERS AND CUSTOMERS ASSUME RESPONSIBILITY FOR THEM.
THE REAL ESTATE SECTOR RECOGNIZES THE REVENUES AND COSTS FROM SALES OF URBANIZED
PLOTS OF LAND IN RESULTS WHEN THE SALES ARE FORMALIZED AND THE DEPOSITS SECURING
THE TRANSACTION ARE RECEIVED. THE INDIVIDUAL ASSIGNMENT OF THE COST OF THE LAND
AND REAL ESTATE PROJECT TAKES INTO CONSIDERATION THE RELATIVE SELLING PRICE OF
THE TOTAL PROJECT SO AS TO MAINTAIN THE SAME PROFIT MARGIN THROUGHOUT THE
PROJECT.
REVENUES AND COSTS FROM REAL ESTATE PROJECTS ARE RECORDED ORIGINALLY AS A
DEFERRED CREDIT FOR CONSTRUCTION COMMITMENTS AND AS REAL ESTATE PROJECTS IN
PROCESS, AND ARE RECOGNIZED IN RESULTS BASED ON THE "PERCENTAGE OF COMPLETION"
METHOD. THEREFORE, REVENUE IS MATCHED WITH COSTS INCURRED TO REACH THE STAGE OF
COMPLETION TO TERMINATE THE PROJECT. IF THE LAST ESTIMATED COSTS DETERMINED
EXCEED THE TOTAL REVENUES CONTRACTED, THE RESPECTIVE PROVISION IS CHARGED TO
RESULTS OF THE YEAR.
INTEGRAL FINANCIAL RESULT - THIS REPRESENTS THE NET EFFECT OF INTEREST EARNED
AND INCURRED, EXCHANGE GAINS AND LOSSES AND MONETARY POSITION GAIN OR LOSS ON,
WHICH IS THE RESULT OF MAINTAINING MONETARY ASSETS AND LIABILITIES WHOSE REAL
PURCHASING POWER IS MODIFIED BY THE EFFECTS OF INFLATION.
FOREIGN CURRENCY TRANSACTIONS ARE RECORDED AT THE EFFECTIVE EXCHANGE RATE AT THE
DATE THE TRANSACTIONS ARE CARRIED OUT AND FOREIGN CURRENCY ASSETS AND
LIABILITIES ARE ADJUSTED TO THE EXCHANGE RATE EFFECTIVE AT YEAREND.
INCOME PER SHARE - BASIC INCOME (LOSS) PER ORDINARY SHARE IS CALCULATED BY
DIVIDING CONSOLIDATED NET INCOME (LOSS) OF MAJORITY STOCKHOLDERS BY THE WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE YEAR.
COMPREHENSIVE INCOME (LOSS) - COMPREHENSIVE INCOME (LOSS IS COMPRISED OF THE NET
CONSOLIDATED INCOME FOR THE PERIOD PLUS (LESS) ANY GAINS OR LOSSES THAT UNDER
45
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
SPECIFIC ACCOUNTING REGULATIONS ARE RECORDED DIRECTLY IN STOCKHOLDERS' EQUITY,
SUCH AS THE GAIN OR LOSS FROM HOLDING NONMONETARY ASSETS.
46
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
ANNEX 3
SHARE OWNERSHIP
NUMBER OF TOTAL AMOUNT
COMPANY NAME MAIN ACTIVITIES SHARES OWNERSHIP (THOUSANDS OF PESOS)
------------------------------------------------------------------------------------------------------------------------------------
ACQUISITION PRESENT
SUBSIDIARIES COST VALUE
------------------------------------------------------------------------------------------------------------------------------------
BOSQUES DE LAS LOMAS, S.A. DE C.V. REAL ESTATE SECTOR 43,189,000 100 161,193 161,193
CLUB ECUESTRE CHILUCA, S.A. DE C.V. REAL ESTATE SECTOR 15,274,170 78 421,968 421,968
PROMOCIONES BOSQUES, S.A. DE C.V. REAL ESTATE SECTOR 82,212,000 100 412,919 412,919
CORPORATIVO DINE, S.A. DE C.V REAL ESTATE SECTOR 238,390,000 100 56,373 56,373
HOLDING DICOMEX, S.A. DE C.V REAL ESTATE SECTOR 141,740,000 50 78,623 78,623
PROMOTORA INMOBILIARIA HIDALGUENSE, S.A DE C.V. REAL ESTATE SECTOR 12,876,272 59.31 12,228 12,228
TURISTICA AKKO, S.A. DE C.V. REAL ESTATE SECTOR 10,000 100 -1,417 -1,417
BOSQUES DE SANTA FE, S.A. DE C.V. REAL ESTATE SECTOR 50 98 -46,862 -46,862
CANADA DE SANTA FE, S.A. DE C.V. REAL ESTATE SECTOR 278,000,000 73 813,771 813,771
INMOBILIARIA DINE, S.A. DE C.V. REAL ESTATE SECTOR 10,010,200 100 62,267 62,267
CANTILES DE MITA REAL ESTATE SECTOR 54,326,326 95.9 1,271,021 1,271,021
CLUB DE GOLF PUNTA MITA, S.A. DE C.V. REAL ESTATE SECTOR 12,410,869 87.69 138,442 138,442
RESORT CLUB PUNTA MITA, S.A. DE C..V REAL ESTATE SECTOR 50,000 100 8,966 8,966
UNIK, S.A. DE C.V. AUTO PARTS SECTOR 700,968,215 100 3,356,730 3,356,730
CORFUERTE, S.A. DE C.V. FOOD SECTOR 643,205,800 77.3 354,036 354,036
AGROKEN, S.A. DE C.V. FOOD SECTOR 366,460,475 100 535,459 535,459
AUTHENTIC SPECIALITY FOODS FOOD SECTOR 291,101 81.31 1,061,770 1,061,770
AGROBIOS CORPORATIVO FOOD SECTOR 550,000 100 36,466 36,466
CID CENTRO DE INVESTIGACION Y DESARROLLO CHEMICALS SECTOR 190,386,900 100 23,863 23,863
DIRECCION IRSA, S.A. DE C.V. CHEMICALS SECTOR 4,201,745 100 -47,049 -47,049
FENOQUIMIA, S.A. DE C.V. CHEMICALS SECTOR 4,998,994 100 -203,708 -203,708
FORESTACIONES OPERATIVAS DE MEXICO, S.A. CHEMICALS SECTOR 31,440 100 21,459 21,459
GIRSA CORPORATIVO, S.A. DE C.V. CHEMICALS SECTOR 5,509,998 100 42,590 42,590
GIRSA INMOBILIARIA, S.A. DE C.V. CHEMICALS SECTOR 615,124,720 100 730,600 730,600
H2ORIZONTES, S.A. DE C.V. CHEMICALS SECTOR 49,950 100 -3,790 -3,790
PRODUCTOS DE CONSUMO RESISTOL, S.A. DE C.V. CHEMICALS SECTOR 691,180,902 100 -12,482 -12,482
QUIMIR, S.A. DE C.V. CHEMICALS SECTOR 1,930,986 100 51,541 51,541
RESIRENE, S.A. DE C.V. CHEMICALS SECTOR 236,058,979 100 193,764 193,764
SERVICIOS FORESTACIONES DE MEXICO, S.A. DE C.V. CHEMICALS SECTOR 218 100 -244 -244
TECNO INDUSTRIA RF, S.A. DE C.V. CHEMICALS SECTOR 10,673,496 100 54,683 54,683
REXEL, S.A. DE C.V. CHEMICALS SECTOR 1,000,997 100 119,049 119,049
INDUSTRIAS NEGROMEX, S.A. DE C.V. CHEMICALS SECTOR 410,044,831 100 587,960 587,960
DYNASOL ELASTOMEROS, S.A. (ESPANA) CHEMICALS SECTOR 1 50 430,883 430,883
DYNASOL GESTION, S.A. CHEMICALS SECTOR 1 50 556 556
DYNASOL, L.L.C. CHEMICALS SECTOR 1 50 10,980 10,980
PARATEC ELASTOMEROS L.L.C. CHEMICALS SECTOR 1 99 20,827 20,827
PLASTIGLAS DE MEXICO, S.A. DE C.V. CHEMICALS SECTOR 200,778,189 95 87,602 87,602
PARATEC, S.A. de C.V. CHEMICALS SECTOR 73,960 29 136,115 136,115
AEROPYCSA, S.A. DE C.V. SERVICE COMPANIES 648,309,280 100 110,687 110,687
CORPORATIVO ARCOS SERVICE COMPANIES 260,524,996 100 56,882 56,882
PROMOCION Y CONTROL, S.A. DE C.V. SERVICE COMPANIES 1,254,000 100 718 718
BIG SOFT SERVICE COMPANIES 1,449,999 100 7,318 7,318
PACIFIC INTERNATIONAL AIRWAYS, S.A. DE C.V. SERVICE COMPANIES 244,498 100 1,431 1,431
SERCOR SERVICE COMPANIES 449 100 695 695
OTHER SUBSIDIARIES (4) (NO. OF SUBS.:) CHEMICALS SECTOR 29,922,181 100 -27842 -27,842
Associates
------------------------------------------------------------------------------------------------------------------------------------
1. Others 11,129,041 11,129,041
------------------------------------------------------------------------------------------------------------------------------------
SERVICES 1 0 16,538 16,
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Other Permanent Investments 4,126,698
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Total 15,272,277
------------------------------------------------------------------------------------------------------------------------------------
47
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
ANNEX 4
PROPERTY, PLANT AND EQUIPMENT
(Thousands of Pesos)
ACCUMULATED DEPRECIATION ON CARRYING VALUE
CONCEPT ACQUISITION COST DEPRECIATION CARRYING VALUE REVALUATION REVALUATION + REV - DEP
------- ---------------- ------------ -------------- ------------ --------------- --------------
DEPRECIATION ASSETS
PROPERTY 1,886,655 395,798 1,490,857 3,783,218 1,822,345 3,451,730
MACHINERY 6,667,406 3,175,152 3,492,254 9,314,682 5,750,498 7,056,438
TRANSPORT EQUIPMENT 195,418 121,826 73,592 76,333 23,121 126,804
OFFICE EQUIPMENT 113,123 65,307 47,816 76,755 47,337 77,234
COMPUTER EQUIPMENT 304,462 264,560 39,902 79,099 71,131 47,870
OTHER 171,364 135,472 35,892 773,895 470,936 338,851
DEPRECIABLES TOTAL 9,338,428 4,158,115 5,180,313 14,103,982 8,185,368 11,098,927
NON-DEPRECIATION ASSETS
GROUNDS 255,759 0 255,759 897,804 0 1,153,563
CONSTRUCTIONS IN PROCESS 909,406 0 909,406 0 0 909,406
OTHER 0 0 0 0 0 0
NON-DEPRECIABLES TOTAL 1,165,165 0 1,165,165 897,804 0 2,062,969
TOTAL 10,503,593 4,158,115 6,345,478 15,001,786 8,185,368 13,161,896
48
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
------------------------------------------------------------------------------------------------------------------------------------
Credit Type/ Amortization Rate of Amoritization of Credits in Foreign Currency with National
Institution Date Interest Denominated in Pesos Entities (Thousands of $)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Time Interval
------------------------------------------------------------------------------------------------------------------------------------
Until 1 More than Current Until 1 Until 2 Until 3 Until 4 Until 5
Banks Year 1 Year Year Year Years Years Years Years
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
WITH WARRANTY
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
DEUTSCHE BANK 15-Oct-07 8.75 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL INSTITUTIONS
IFC 15-Feb-04 3.86 0 0 0 0 0 0 0 0
IFC 15-Feb-03 3.74 0 0 0 0 0 0 0 0
IFC 15-Feb-06 3.86 0 0 0 0 0 0 0 0
IFC 15-Sep-09 8.31 0 0 0 0 0 0 0 0
DEG 28-Dec-06 4.13 0 0 0 0 0 0 0 0
CITIBANK NA
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
DEUTSCHE BANK
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
JP MORGAN CHASE BANK
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 12-Jun-07 2.97 0 0 0 0 0 0 0 0
COMERICA BANK
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
EXPORT DEVELOPMENT
CANADA 12-Jun-07 2.97 0 0 0 0 0 0 0 0
TORONTO DOMINION
BANK 12-Jun-07 2.97 0 0 0 0 0 0 0 0
BBVA BANCOMER
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
CREDIT LYONNAIS
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
CREDIT SUISSE FIRST
BOSTON (SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
HSBC BANK (SINDICADO)12-Jun-07 2.97 0 0 0 0 0 0 0 0
BAYERISCHE HYPO-UND
VEREINSBANK
(SYNDICATE) 12-Jun-07 2.97 0 0 0 0 0 0 0 0
49-A
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
------------------------------------------------------------------------------------------------------------------------------------
Credit Type/ Amortization Rate of Amoritization of Credits in Foreign Currency with National
Institution Date Interest Denominated in Pesos Entities (Thousands of $)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Time Interval
------------------------------------------------------------------------------------------------------------------------------------
Until 1 More than Current Until 1 Until 2 Until 3 Until 4 Until 5
Banks Year 1 Year Year Year Years Years Years Years
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
WITH WARRANTY
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
DEUTSCHE BANK 15-Oct-07 8.75 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL INSTITUTIONS
BBVA BANCOMER
(SYNDICATE) 26-Jun-07 9.30 0 355,000 0 0 0 0 0 0
BANCO SANTANDER
MEXICO (SYNDICATE) 26-Jun-07 9.30 0 355,000 0 0 0 0 0 0
BANCO INVEX
(SYNDICATE) 26-Jun-07 9.30 0 200,000 0 0 0 0 0 0
COMERICA BANK MEXICO
(SYNDICATE) 26-Jun-07 9.30 0 100,000 0 0 0 0 0 0
IXE BANCO
(SYNDICATE) 26-Jun-07 9.30 0 40,000 0 0 0 0 0 0
BANCO MERCANTIL DEL
NORTE 26-Jun-07 9.30 0 250,000 0 0 0 0 0 0
BANCO INBURSA 1-Dec-03 3.85 0 0 0 227,949 0 0 0
BANCO INBURSA 1-Dec-04 3.75 0 0 0 80,818 518,065 0 0 0
BANCO INBURSA 9-Jun-03 3.85 0 0 0 704,568 0 0 0 0
IXE BANCO 30-May-03 3.75 0 0 0 61,132 0 0 0 0
BBVA BANCOMER 8-Apr-03 3.02 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 10-Nov-03 2.82 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 3-Jun-03 2.59 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 16-May-08 8.06 5 11,907 0 0 0 0 0 0
BANCO INBURSA 11-Feb-03 3.25 0 0 0 6,735 0 0 0 0
BANCO INBURSA 11-Feb-03 3.25 0 0 0 13,832 0 0 0
ING BANK 3-Mar-03 3.02 0 0 0 0 0 0 0 0
California Commerce B.2-Aug-03 2.25 0 0 0 0 0 0 0 0
California Commerce B.3-Apr-03 3.25 0 0 0 0 0 0 0 0
BANCO INBURSA 10-Jan-03 3.75 0 0 0 93,251 0 0 0 0
BANCO INBURSA 10-Jan-03 3.75 0 0 0 31,084 0 0 0 0
Other Financial
Leases 2-Jul-10 8.40 0 0 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 31-Jan-07 8.87 1,216 3,953 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 31-Jan-07 8.87 2,040 6,637 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 31-Jan-07 6.60 1,040 3,192 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 28-May-03 2.66 0 0 0 51,807 0 0 0 0
BANAMEX-CITIBANK 3-Jun-03 2.59 0 0 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 4-Jun-03 2.48 0 0 0 20,723 0 0 0 0
BANAMEX-CITIBANK 25-Mar-03 3.57 0 0 0 0 0 0 0 0
JP MORGAN CHASE BANK 11-Mar-03 7.34 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 25-Mar-03 3.64 0 0 0 0 0 0 0 0
50-A
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
------------------------------------------------------------------------------------------------------------------------------------
Credit Type/ Amortization Rate of Amoritization of Credits in Foreign Currency with National
Institution Date Interest Denominated in Pesos Entities (Thousands of $)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
Time Interval
------------------------------------------------------------------------------------------------------------------------------------
Until 1 More than Current Until 1 Until 2 Until 3 Until 4 Until 5
Banks Year 1 Year Year Year Years Years Years Years
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
WITH WARRANTY
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
DEUTSCHE BANK 15-Oct-07 8.75 0 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL INSTITUTIONS
BANAMEX-CITIBANK 14-Aug-03 3.56 0 0 0 0 0 0 0 0
COMERICA BANK 20-Mar-04 2.83 0 0 0 0 0 0 0 0
COMERICA BANK 21-Dec-03 2.92 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 16-Jun-03 2.82 0 0 0 0 0 0 0 0
COMERICA BANK 30-Aug-03 7.75 0 0 0 0 0 0 0 0
COMERICA BANK 30-Aug-03 7.75 0 0 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 7-Feb-03 2.63 0 0 0 46,626 0 0 0 0
BBVA BANCOMER 17-Mar-03 2.98 0 0 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 17-Feb-03 2.68 0 0 0 31,084 0 0 0 0
BANAMEX-CITIBANK 17-Jan-03 3.04 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 23-Apr-03 2.84 0 0 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 4-Jun-03 2.48 0 0 0 15,930 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 10-Mar-03 2.85 0 0 0 6,994 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 7-Feb-03 2.63 0 0 0 48,698 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 14-Feb-03 2.68 0 0 0 25,903 0 0 0 0
BBVA BANCOMER 17-Mar-03 2.98 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 23-Apr-03 2.84 0 0 0 0 0 0 0 0
BANAMEX-CITIBANK 13-Jun-03 2.41 0 0 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 21-May-03 2.49 0 0 0 53,879 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 10-Mar-03 2.85 0 0 0 9,196 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL BANKS 4,301 1,325,689 0 1,530,209 518,065 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
** TABLE CONTINUED **
51-A
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
-----------------------------------------------------------------------------------
Credit Type/ Amoritization of Credits in Foreign Currency with Foreign
Institution Entities (Thousands of $)
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Time Interval
-----------------------------------------------------------------------------------
Current Until 1 Until 2 Until 3 Until 4 Until 5
Banks Year Year Years Years Years Years
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
WITH WARRANTY
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
DEUTSCHE BANK 0 0 0 0 0 756,903
-----------------------------------------------------------------------------------
FINANCIAL INSTITUTIONS
IFC 0 62,168 31,084 0 0 0
IFC 0 51,807 0 0 0 0
IFC 0 14,806 14,798 14,802 7,402
IFC 0 155,420 155,420 155,420 155,420 466,259
DEG 0 4,180 4,297 2,169 2,169 0
CITIBANK NA (SYNDICATE) 0 0 77,710 252,556 174,847 116,565
DEUTSCHE BANK (SYNDICATE) 0 0 59,577 150,886 91,309 60,873
JP MORGAN CHASE BANK
(SYNDICATE) 0 0 59,577 150,886 91,309 60,873
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 116,565 116,565 77,710
COMERICA BANK (SYNDICATE) 0 0 51,807 129,516 77,710 51,807
EXPORT DEVELOPMENT
CANADA 0 0 34,555 86,336 51,807 34,529
TORONTO DOMINION
BANK 0 0 0 77,710 77,710 51,807
BBVA BANCOMER (SYNDICATE) 0 0 12,951 22,665 9,714 6,476
CREDIT LYONNAIS
(SYNDICATE) 0 0 51,807 51,807 0 0
CREDIT SUISSE FIRST
BOSTON (SYNDICATE) 0 0 51,807 51,807 0 0
HSBC BANK (SINDICADO) 0 0 51,807 51,807 0 0
BAYERISCHE HYPO-UND
VEREINSBANK (SYNDICATE) 0 0 51,807 51,807 0 0
49-B
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
-----------------------------------------------------------------------------------
Credit Type/ Amoritization of Credits in Foreign Currency with Foreign
Institution Entities (Thousands of $)
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Time Interval
-----------------------------------------------------------------------------------
Current Until 1 Until 2 Until 3 Until 4 Until 5
Banks Year Year Years Years Years Years
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
WITH WARRANTY
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
DEUTSCHE BANK 0 0 0 0 0 756,903
-----------------------------------------------------------------------------------
FINANCIAL INSTITUTIONS
BBVA BANCOMER (SYNDICATE) 0 0 0 0 0 0
BANCO SANTANDER
MEXICO (SYNDICATE) 0 0 0 0 0 0
BANCO INVEX (SYNDICATE) 0 0 0 0 0 0
COMERICA BANK MEXICO
(SYNDICATE) 0 0 0 0 0 0
IXE BANCO (SYNDICATE) 0 0 0 0 0 0
BANCO MERCANTIL DEL
NORTE 0 0 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
IXE BANCO 0 0 0 0 0 0
BBVA BANCOMER 0 207,226 0 0 0 0
BANAMEX-CITIBANK 0 362,646 0 0 0 0
BANAMEX-CITIBANK 0 93,252 0 0 0 0
BANAMEX-CITIBANK 0 0 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
ING BANK 0 86,344 0 0 0 0
California Commerce B 0 93,252 0 0 0 0
California Commerce B 0 39,373 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
BANCO INBURSA 0 0 0 0 0 0
Other Financial Leases 0 17,766 3,841 5,996 6,607 29,705
BANCO SANTANDER
MEXICANO 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 0 0 0 0 0 0
BANCO SANTANDER
MEXICANO 0 0 0 0 0 0
BANAMEX-CITIBANK 0 155,420 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BANAMEX-CITIBANK 0 7,584 0 0 0 0
JP MORGAN CHASE BANK 0 43,789 0 0 0 0
BANAMEX-CITIBANK 0 7,770 0 0 0 0
50-B
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
-----------------------------------------------------------------------------------
Credit Type/ Amoritization of Credits in Foreign Currency with Foreign
Institution Entities (Thousands of $)
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Time Interval
-----------------------------------------------------------------------------------
Current Until 1 Until 2 Until 3 Until 4 Until 5
Banks Year Year Years Years Years Years
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
WITH WARRANTY
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
DEUTSCHE BANK 0 0 0 0 0 756,903
-----------------------------------------------------------------------------------
FINANCIAL INSTITUTIONS
BANAMEX-CITIBANK 0 15,195 0 0 0 0
COMERICA BANK 0 10,361 5,181 0 0 0
COMERICA BANK 0 62,168 0 0 0 0
BANAMEX-CITIBANK 0 122,263 0 0 0 0
COMERICA BANK 0 202 0 0 0 0
COMERICA BANK 0 390 65 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BBVA BANCOMER 0 103,613 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BANAMEX-CITIBANK 0 51,807 0 0 0 0
BANAMEX-CITIBANK 0 13,988 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BBVA BANCOMER 0 103,613 0 0 0 0
BANAMEX-CITIBANK 0 30,048 0 0 0 0
BANAMEX-CITIBANK 0 51,807 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
BANCO NAL. COMERCIO
EXTERIOR 0 0 0 0 0 0
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
TOTAL BANKS 0 1,968,258 718,091 1,372,735 862,569 1,713,507
-----------------------------------------------------------------------------------
** TABLE COMPLETE **
51-B
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
------------------------------------------------------------------------------------------------------------------------------------
LISTED IN THE Amortization Rate of Amoritization of Credits in Foreign Currency with National
MEXICAN STOCK Date Interest Denominated in Pesos Entities (Thousands of $)
EXCHANGE
------------------------------------------------------------------------------------------------------------------------------------
Time Interval
------------------------------------------------------------------------------------------------------------------------------------
Until 1 More than Current Until 1 Until 2 Until 3 Until 4 Until 5
Year 1 Year Year Year Years Years Years Years
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
UNSECURED DEBT
------------------------------------------------------------------------------------------------------------------------------------
UDIBONOS 21-Oct-06 9.00 1,045,153 0 0 0 0 0 0
UDIBONOS 13-Jul-07 8.20 1,150,211 0 0 0 0 0 0
0 2,195,364 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
TOTAL STOCK EXCHANGE
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
SUPPLIERS 759,169 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
OTHERS
------------------------------------------------------------------------------------------------------------------------------------
TOTAL SUPPLIERS 759,169 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
OTHERS 1/0/1900 1,608,576 0 0 0 0 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
OTHER CURRENT
LIABILITIES AND
OTHER CREDITS 2,372,046 3,521,053 0 1,530,209 518,065 0 0 0
------------------------------------------------------------------------------------------------------------------------------------
** TABLE CONTINUED **
52-A
Ticker Symbol: DESC
DESC, S.A. de C.V. Audited Information
MEXICAN STOCK EXCHANGE QUARTER: 4 2002
SIFIC/ICS Consolidated
ANNEX 5
LOAN BREAKDOWN
(Thousands of Pesos)
------------------------------------------------------------------------------------
LISTED IN THE Amoritization of Credits in Foreign Currency with Foreign
MEXICAN STOCK Entities (Thousands of $)
EXCHANGE
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
Current Until 1 Until 2 Until 3 Until 4 Until 5
Year Year Years Years Years Years
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
UNSECURED DEBT
------------------------------------------------------------------------------------
UDIBONOS 0 0 0 0 0 0
UDIBONOS 0 0 0 0 0
0 0 0 0 0 0
------------------------------------------------------------------------------------
TOTAL STOCK EXCHANGE
------------------------------------------------------------------------------------
------------------------------------------------------------------------------------
SUPPLIERS 0 1,248,826 0 0 0 0
------------------------------------------------------------------------------------
OTHERS
------------------------------------------------------------------------------------
TOTAL SUPPLIERS 0 1,248,826 0 0 0 0
------------------------------------------------------------------------------------
OTHERS 0 160,798 0 0 0 0
------------------------------------------------------------------------------------
OTHER CURRENT
LIABILITIES AND
OTHER CREDITS 0 3,377,882 718,091 1,372,735 862,569 1,713,507
------------------------------------------------------------------------------------
** TABLE COMPLETE **
52-B
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
TRADE BALANCE AND MONETARY POSITION IN FOREIGN EXCHANGE
(THOUSANDS OF PESOS)
------------------------------------------------------------------------------------------------------------------------------------
DOLLARS (1) OTHER CURRENCIES TOTAL
THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF
TRADE BALANCE DOLLARS PESOS DOLLARS PESOS PESOS
------------------------------------------------------------------------------------------------------------------------------------
1. INCOME
EXPORTS 902,039 8,932,094 0 0 8,932,094
OTHER 4,359 42,094 0 0 42,094
TOTAL 906,398 8,974,188 0 0 8,974,188
2. EXPEDITURE
IMPORT (RAW MATERIALS) 405,591 3,916,886 0 0 3,916,886
INVESTMENTS 29,174 281,685 0 0 281,685
OTHER 113,307 1,093,579 0 0 1,093,579
TOTAL 548,072 5,292,150 0 0 5,292,150
NET BALANCE 358,326 3,682,038 3,682,038
FOREIGN MONETARY POSITION
TOTAL ASSETS 351,852 3,645,644 0 0 3,645,644
LIABILITIES POSITION 1,001,953 10,381,536 0 0 10,381,536
SHORT TERM LIABILITIES POSITION 480,833 4,982,055 0 0 4,982,055
LONG TERM LIABILITIES POSITION 521,120 5,399,481 0 0 5,399,481
NET BALANCE -650,101 -6,735,892 0 0 -6,735,892
53
Ticker Symbol: DESC Mexican Stock Exchange Quarter : 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
INTEGRATION AND INCOME CALCULATION BY MONETARY POSITION
(THOUSANDS OF PESOS)
(ASSET)
LIABILITIES
MONETARY MONETARY MONTHLY MONTHLY (PROFIT)
MONTH MONETARY ASSETS LIABILITIES POSITION INFLATION AND LOSS
JANUARY 6,547,549 15,496,640 -8,949,091 0.92 82,332
FEBRUARY 5,870,367 15,568,071 -9,697,704 0 -5,819
MARCH 6,161,504 15,906,306 -9,744,802 0.51 49,698
APRIL 6,554,529 15,787,368 -9,232,839 0.55 50,781
MAY 6,264,061 15,742,248 -9,477,647 0.2 18,955
JUNE 6,320,793 16,310,647 -9,989,854 0.49 48,950
JULY 7,837,993 16,647,138 -8,809,145 0.29 25,547
AUGUST 7,311,643 16,289,775 -8,978,132 0.38 34,117
SEPTEMBER 7,073,792 16,723,293 -9,649,501 0.6 57,897
OCTOBER 7,220,801 16,690,826 -9,470,025 0.44 41,668
NOVEMBER 6,762,260 16,424,933 -9,662,673 0.81 78,268
DECEMBER 6,734,293 16,660,173 -9,925,880 0.54 53,600
ACTUALIZATION 0 0 0 0 0
CAPITALIZATION 0 0 0 0 -137,723
FOREIGN CORP. 0 0 0 0 0
OTHER 0 0 0 0 0
TOTAL 398,271
54
ZTicker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE QUARTER: 3 YEAR: 2002
CODE: DESC
BONDS AND MEDIUM TERM NOTES LISTING IN STOCK MARKET (1)
ANNEX 8
FINANCIAL LIMITATIONS BASED ON ISSUANCES OR INSTRUMENTS
-1 Interest Coverage.
The result obtained from dividing the sum of (i) the consolidated operating
profit plus depreciation and amortization during the immediately prior 4 full
fiscal quarters by (ii) consolidated financial expense during such period, shall
not be less than 2.75 times.
-2 Capitalization.
The result obtained from dividing, (i) total debt with cost minus cash plus
fifty million dollars, by (ii) net assets plus total debt with cost minus cash
plus fifty million dollars, shall not be greater than 0.50 times.
-3 Leverage Ratio.
The result obtained from dividing (i) total debt with cost minus cash plus fifty
million dollars, by (ii) the sum of the consolidated operating profit plus
depreciation and amortization during the immediately prior 4 full fiscal
quarters, shall not exceed 4.75 times.
55
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
CURRENT STATUS OF FINANCIAL LIMITATIONS
(1) Interest Coverage. 3.32
(2) Capitalization. 0.48
(3) Leverage Ratio. 4.47
56
Ticker Symbol: DESC Mexican Stock ExchangeQuarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------------------
PLANT ECONOMIC PLANT
OR CAPACITY UTILIZATION
CENTER ACTIVITY (1) %
------------------------------------------------------------------------------------------------------------------------------------
EJES TRACTIVOS, S.A. DE C.V. REAR AXLES 320 50%
PISTONES MORESA, S.A. DE C.V. PISTONS (PIECES) 11,800 41%
MORESTANA, S.A. DE C.V. TAPPETS (PIECES) 12,900 68%
PISTONES MORESA, S.A. DE C.V. PISTON PINS (PIECES) 23,500 47%
ENGRANES CONICOS, S.A. DE C.V. GEARS (SETS) 820 70%
PRODUCTOS ESTAMPADOS DE MEXICO, S.A. DE C.V. PICK-UP BOXES (PIECES) 330 35%
VELCON, S.A. DE C.V. CONSTANT VELOCITY JOINTS (PIECES) 1,920 90%
TRANSMISIONES TSP, S.A DE C.V. TRANSMISSIONS (TRANS.) 71 24%
TREMEC, S.A. DE C.V. TRANSMISSIONS (TRANS.) 400 70%
CARDANES, S.A. DE C.V. PROPELLER SHAFTS (PIECES) 742 57%
HAYES WHEELS CHIHUAHUA, S.A. DE C.V. ALUMINUM WHEELS (PIECES) 650 60%
HAYES WHEELS ACERO, S.A. DE C.V. STEEL WHEELS (PIECES) 6,100 40%
AUTOMETALES, S.A. DE .CV. IRON FOUNDRY (TONS.) 20 47%
TF VICTOR, S.A. DE C.V. GASKETS, SEALS, MOTOR PARTS (PIECES) 20,000 60%
FORJAS SPICER, S.A. DE C.V. PRECISION FORGES (TONS.) 55 32%
VEHYCO PISTONS (PIECES) 1,200 70%
COATZACOALCOS, VER. POLYSTYRENE (TONS) 75,000 103%
XOCOHTZINGO,TLAX. POLYSTYRENE (TONS) 65,000 64%
ALTAMIRA, TAMPS. (Dynasol) SYNTHETIC RUBBER (TONS) 84,500 100%
ALTAMIRA, TAMPS. (INSA) SYNTHETIC RUBBER (TONS) 96,000 88%
ALTAMIRA, TAMPS. (PARATEC) SYNTHETIC RUBBER (TONS) 40,000 74%
COATZACOALCOS, VER. PHOSPHATE (TONS) 100,000 102%
TULTITLAN, EDO. MEX. PHOSPHATE (TONS) 86,000 64%
LECHERIA, EDO. MEX. PHOSPHATE (TONS) 40,000 8%
ALTAMIRA, TAMPS. CARBON BLACK (TONS) 120,000 88%
COSOLEACAQUE, VER. METHYL METHACRYLATE (TONS) 20,000 99%
OCOYOACAC, EDO. MEX. ACRYLC SHEET 7,855 106%
SAN LUIS POTOSI. S.L.P. ACRYLC SHEET 4,806 96%
SALAMANCA, GTO. WATERPROOFING SEALANTS AND ADHESIVES (TONS) 145,000 46%
VALLEJO, D.F. ADHESIVES (TONS) 16,000 53%
LERMA, EDO. MEX. ADHESIVES (TONS) 4,080 57%
------------------------------------------------------------------------------------------------------------------------------------
57
Ticker Symbol: DESC Mexican Stock ExchangeQuarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 CONSOLIDATED
------------------------------------------------------------------------------------------------------------------------------------
PLANT ECONOMIC PLANT
OR CAPACITY UTILIZATION
CENTER ACTIVITY (1) %
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
QUERETARO, QRO. NATURAL PIGMENTS 72 34%
LECHERIA, EDO. MEX. EMULSIONS (TONS) 6,000 68%
LERMA, EDO. MEX. MELAMINE LAMINATES (TONS) 6 77%
ZITACUARO, MICH. PARTICLE BOARD (Millions of M2) 14 68%
LECHERIA, EDO. MEX. ORTHOPHOSPHATE (TONS) 119,000 32%
------------------------------------------------ -----------------------------------------------------------------------------------
58
Ticker Symbol: DESC Mexican Stock ExchangeQuarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9
------------------------------------------------------------------------------------------------------------------------------------
PLANT ECONOMIC PLANT
OR CAPACITY UTILIZATION
CENTER ACTIVITY (1) %
------------------------------------------------------------------------------------------------------------------------------------
MERIDA MILL (ton/month) 27600 1
IRAPUATO MILL (ton/month) 20,000 38%
PENINSULA HOG (thousands) 35 100%
BAJIO HOG (thousands) 10 100%
MERIDA SLAUGHTER HOUSE 222 100%
CANCUN SLAUGHTER HOUSE 27 80%
PENJAMO SLAUGHTER HOUSE 111 80%
IRAPUATO SLAUGHTER HOUSE 240 0%
MOCHIS (SANTA ROSA) FRESH TOMATO PROCESSING
(THOUSAND OF POUNDS IN 100 DAYS) 6,614 4%
TOMATO PRODUCTS IN TETRABRIK CONTAINER
(MILLION OF CASES) 6 74%
TOMATO PASTE (THOUSAND OF POUNDS IN 100 DAYS) 98,104 0%
DEHYDRATED PRODUCTS ( THOUSAND OF
POUNDS/YEAR IN 100 DAYS OF SEASON?) 847 0%
MOCHIS (LA CORONA) CANNED VEGETABLES (THOUSAND OF PONDS) 159,981 50%
CANNED VEGETABLES (MILLIONS OF CASES) 6.66 50%
MAZATLAN TUNA (thousands boxes) 2500 58%
ROSEMEAD, CALIFORNIA SALSA & CANNED VEGETABLES (thousands lb) 166226 37%
------------------------------------------------------------------------------------------------------------------------------------
59
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
MAIN RAW MATERIALS
ANNEX 10 CONSOLIDATED
---------------------------- ----------------------------------- ---------------------- ------------------ ------------- -----------
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
%
--------------------------- ------------------------------------ ---------------------- ----------------- -------------- -----------
LAMINATE HYLSA, S. A. DE C.V. STEEL MC STEEL NO
STEEL INDUSTRIAS CH, S. A. STEEL MITSUBISHI YES
ALUMINUM NACOBRE LAMINATE NISHO OWAI NO
COLOR PAINTS P.P.G. INDUSTRIAS DE MEXICO STEEL TOTH INDUSTRIES NO
S.A DE C.V.
LAMINATE AHMSA AUTOMOTIVE PARTS DANA CO. NO
COLOR PAINTS DUPONT DE MEXICO FORGE GSB FORJA NO
RODAMIENTOS KOYO DE MEXICO LAMINATE DAEWOO CORP. NO
RODAMIENTOS TIMKEM ALUMINUM REYNOLDS METAL YES
LAMINATE GENERAL MOTORS RODAMIENTOS THE TIMKEN CO. NO
FORGE THYSSEN PRECISION FORGE NO
STYRENE PEMEX STYRENE STERLING, MITSUI
BUTADIEN BUTADIEN SHELL, POLIMERI EUROPA , BP CHEMICAL,
EQUISTAR, SABIC, REPSOL QUIMICA, DSM
METHANOL PEMEX METHANOL CELANESE, PETROCEL
TOLUEN PEMEX
NATURAL GAS PEMEX
PHOSPHORIC ACID MERCANTILE RHODIA MEXICANA
PHOSPHORIC ACID (TECHNICAL) RHODIA MEXICANA
ACETOCYANOHIDRINE BP CHEMICAL
FRESH JALAPENO OWN PRODUCTION & FRESH MARKET ( VARIOUS )
FRESH TOMATO OWN PRODUCTION & FRESH MARKET ( VARIOUS )
FRESH TOMATILLO OWN PRODUCTION & FRESH MARKET ( VARIOUS )
TETRABRIK CONTAINER TETRAPAK
METALLIC CAN GRUPO ZAPATA
60
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
MAIN RAW MATERIALS
ANNEX 10 CONSOLIDATED
---------------------- ------------------------------- ---------------------- ------------------ ------------- -------------
MAIN MAIN DOM. COST
DOMESTIC SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
%
--------------------- -------------------------------- ---------------------- ----------------- -------------- ------------
METALLIC CAN ZAPATA ENVASES
CORN OIL ARANCIA CORN PRODUCTS
SHIPPING CARTON CELULOSA Y CORRUGADOS
SHIPPING CARTON EMPAQUE DE CARTON TITAN
TOMATO PASTE MORNING STAR OK
REYNOLD'S ITEMS REYNOLDS
METALLIC CAN ENVASES DE SINALOA
DIESEL PEMEX
VEGETABLES RIO FARMS
VEGETABLES WOOLF ENTERPRISES
PACKAGING MATERIAL - GLASS OWENS BROCKWAY
PACKAGING MATERIAL - CANS PECHINEY PLASTIC
HOG GENETIC PIC
GRAIN CARGILL OK
---------------------------------------------------------------------------------------------------------------------------
61
Ticker Symbol: DESC Mexican Stock Exchange Quarter: 4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
MEXICAN STOCK EXCHANGE
SIFIC / ICS
SALES DISTRIBUTION BY PRODUCT
DOMESTIC SALES
--------------------------------------- -------------------------------------------------- -----------------------------------------
MAIN PRODUCTS TOTAL PRODUCTION SALES
--------------------------------------- -------------------------------------------------- -----------------------------------------
VOLUME AMOUNT VOLUME AMOUNT
--------------------------------------- ---------------------------- --------------------- ----------------------- -----------------
AUTOPARTS SECTOR 2,920,544
CHEMICAL SECTOR 4,495,081
FOOD SECTOR 2,432,372
REAL ESTATE SECTOR 768,763
COMPANIES OF OTHER SERVICES 34,083
--------------------------------------- ---------------------------- --------------------- ----------------------- ----------------
TOTAL 10,650,843.00
--------------------------------------- ---------------------------- --------------------- ----------------------- -----------------
** TABLE CONTINUED **
--------------------------------------- --------------------------------------- -------------------------------------------
MAIN PRODUCTS MARKET SHARES (%) MAIN
--------------------------------------- --------------------------------------- -------------------------------------------
TRADEMARKS CUSTOMERS
--------------------------------------- --------------------------------------- ---------------- ----------------
AUTOPARTS SECTOR
CHEMICAL SECTOR
FOOD SECTOR
REAL ESTATE SECTOR
COMPANIES OF OTHER SERVICES
--------------------------------------- --------------------------------------- ----------------- -----------------
TOTAL
** TABLE COMPLETE **
SALES DISTRIBUTION BY PRODUCT
FOREIGN SALES
--------------------------------------- -------------------------------------------------- -----------------------------------------
MAIN PRODUCTS TOTAL PRODUCTION SALES
--------------------------------------- -------------------------------------------------- -----------------------------------------
VOLUME AMOUNT VOLUME AMOUNT
--------------------------------------- ---------------------------- --------------------- ----------------------- -----------------
AUTOPARTS SECTOR 5,477,850
CHEMICAL SECTOR 2,441,402
FOOD SECTOR 1,012,842
--------------------------------------- ---------------------------- --------------------- ----------------------- -----------------
TOTAL 8,932,094.00
--------------------------------------- ---------------------------- --------------------- ----------------------- -----------------
** TABLE CONTINUED **
--------------------------------------- ------------------------------------------ -------------------------------------------
MAIN PRODUCTS MARKET SHARES (%) MAIN
--------------------------------------- ------------------------------------------ -------------------------------------------
TRADEMARKS CUSTOMERS
--------------------------------------- ------------------------------------------ ---------------------- --------------------
AUTOPARTS SECTOR
CHEMICAL SECTOR
FOOD SECTOR
--------------------------------------- ------------------------------------------ ---------------------- --------------------
TOTAL
--------------------------------------- ------------------------------------------ ---------------------- --------------------
** TABLE COMPLETE **
62
Ticker Symbol: DESC Mexican Stock Exchange Quarter:4 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
ANNEX 12
SCHEDULE FOR THE DETERMINATION OF THE NET FISCAL EARNINGS ACCOUNT (NFEA)
(Thousands of Pesos)
NFEA BALANCE FOR PREVIOUS PERIOD FOR WHICH IS DETERMINED
----------------------
NFE BALANCE TO DECEMBER 31st Of: 2001 3,984,396
----------------------
----------------------
Number of shares Outstanding at the Date of the NFEA: 1,369,079,376
----------------------
(Units)
----------------
X Are figures fiscally audited?
----------------
DIVIDENDS PAIDOUT IN THE PERIOD THAT COMES FROM THE NFEA
-------------------------------------------------------------------------------------------------------
Quarter Series Number of shares Date of Settlement Amount
Outstanding
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
2 A 587,479,900 18-04-02 42,592
---------------- ------------ ----------------------- -------------------------- ----------------------
4 A 587,479,900 24-10-02 42,592
---------------- ------------ ----------------------- -------------------------- ----------------------
3 A 587,479,900 25-07-02 42,592
---------------- ------------ ----------------------- -------------------------- ----------------------
1 A 587,479,900 31-01-02 42,592
---------------- ------------ ----------------------- -------------------------- ----------------------
2 B 506,176,760 18-04-02 36,698
---------------- ------------ ----------------------- -------------------------- ----------------------
4 B 506,257,866 24-10-02 36,704
---------------- ------------ ----------------------- -------------------------- ----------------------
3 B 506,257,866 25-07-02 36,704
---------------- ------------ ----------------------- -------------------------- ----------------------
1 B 506,176,760 31-01-02 36,698
---------------- ------------ ----------------------- -------------------------- ----------------------
2 C 275,341,610 18-04-02 19,962
---------------- ------------ ----------------------- -------------------------- ----------------------
4 C 275,341,610 24-10-02 19,962
---------------- ------------ ----------------------- -------------------------- ----------------------
3 C 275,341,610 25-07-02 19,962
---------------- ------------ ----------------------- -------------------------- ----------------------
1 C 275,341,610 31-01-02 19,962
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
-------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DETERMINATION OF THE NFEA OF THE PRESENT YEAR NFE
FROM THE PERIOD JANUARY 1 TO 31 OF DECEMBER OF 2001
--------------------------
FISCAL EARNINGS 0
--------------------------
--------------------------
- DETERMINED INCOME 0
--------------------------
--------------------------
+ DEDUCTED WORKER'S PROP. 0
--------------------------
--------------------------
- DETERMINED WORKER 0
--------------------------
--------------------------
- DETERMINED RFE 0
--------------------------
--------------------------
- NON DEDUCTIBLES 0
--------------------------
--------------------------
NFE OF PERIOD: 0
--------------------------
--------------------------------------------------------------------------------
BALANCE OF THE NFEA AT THE END OF THE PERIOD
----------------------
NFE BALANCE TO DECEMBER 31st Of: 2002 3,802,604
----------------------
----------------------
Number of shares Outstanding at the Date of the NFEA: 1,369,079,376
----------------------
--------------------------------------------------------------------------------
MODIFICATION BY COMPLEMENTARY
----------------------
NFE BALANCE TO DECEMBER 31st Of: 2002 0
----------------------
----------------------
Number of shares Outstanding at the Date of the NFEA: 0
----------------------
Units
--------------------------------------------------------------------------------
63
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
ANNEX 12-A
SCHEDULE FOR THE DETERMINATION OF THE NET FISCAL EARNINGS ACCOUNT REINVERTED
(NFEAR)
(Thousands of Pesos)
NFEAR BALANCE FOR PREVIOUS PERIOD FOR WHICH IS DETERMINED
-----------------------
NFEAR BALANCE TO DECEMBER 31st Of: 2001 0
-----------------------
-----------------------
Number of shares Outstanding at the Date of the NFEAR: 0
-----------------------
(Units)
----------- ------------
-----------Are figures fiscally audited? ------------ Are the figures fiscally
consolidated?
----------------------------------------------------------------------------------------------------------------------
DIVIDENDS PAIDOUT IN THE PERIOD THAT COMES FROM THE NFEAR
----------------------------------------------------------------------------------------------------------------------
Quarter Series Number of shares Date of Settlement Amount
Outstanding
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
0 0
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------ ---------------- --------------------------- -------------------------- ---------------------------
------------------- --------------- ----------- -------------- ------------- --------- ---------- --------------------
----------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DETERMINATION OF THE NFEAR OF THE PRESENT
YEAR NFER FROM THE PERIOD JANUARY 1 TO 31 OF DECEMBER OF 2001
Fiscal Earnings
-----------
+ Deducted Worker's profit share 0
-----------
-----------
- Determined income tax 0
-----------
-----------
- Non-Deductibles 0
-----------
- (+) Earnings (loss) from foreign of profit:
-----------
Determinated RFE of the fiscal year 0
-----------
-----------
- Income Tax (Deferred ISR) 0
-----------
-----------
* Factor to Determine the NFEAR: 0
-----------
-----------
NFER From the period 0
-----------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
BALANCE OF THE NFEAR AT THE END OF THE PERIOD
-----------
NFEAR BALANCE TO 31 OF DECEMBER OF 2002 0
-----------
-----------
Number of Shares Outstanding at the Date of the NFEAR: 0
Units -----------
--------------------------------------------------------------------------------
MODIFICATION BY COMPLEMENTARY
-----------
NFEAR BALANCE TO 31 OF DECEMBER OF 2002 0
-----------
-----------
Number of Shares Outstanding at the Date of the NFEAR: 0
Units -----------
--------------------------------------------------------------------------------
64
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
-------------------- ------------- ------------ ------------------------------------------------------------------------------------
NOMINAL VALID
SERIES VALUE COUPON NUMBER OF SHARES
-------------------- ------------- ------------ ------------------------------------------------------------------------------------
VARIABLE
FIXED PORTION PORTION MEXICAN SUBSCRIPTION
-------------------- ------------- ------------ ---------------------- --------------------- ---------------------- -------------
A 0.01300 18 5,874,799,000 587,479,900
-------------------- ------------- ------------ ------------------------- --------------------- ---------------------- -------------
B 0.01300 18 506,257,866 506,257,866
-------------------- ------------- ------------ ------------------------- --------------------- ---------------------- -------------
C 0.01300 18 275,341,610 275,341,610
-------------------- ------------- ------------ ------------------------- --------------------- ---------------------- -------------
Total 5,874,799,000 781,599,476 1,093,737,766 275,341,610
-------------------- ------------- ------------ ------------------------- --------------------- ---------------------- -------------
** TABLE CONTINUED **
---------------------- ---------------------------------
CAPITAL STOCK (THOUSANDS OF
SERIES PESOS)
---------------------- ---------------------------------
FIXED VARIABLE
---------------------- ---------------- ----------------
A 7,637
---------------------- ---------------- ----------------
B 6,581
---------------------- ---------------- ----------------
C 3,580
---------------------- ---------------- ----------------
Total 7,637 10,161
---------------------- ---------------- ----------------
** TABLE COMPLETE **
TOTAL NUMBER OS SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF
SENDING THE SHARES:
1,369,079,376
SHARES PROPORTION BY:
CPO'S:
UNITS:
ADRS's:
GDRS's:
ADS's:
GDS's:
Repurchased own shares
Market value of the share
Number of
Series Shares At repurchase At Quarter
--------------- ------------- ------- ----------------------------- ------------
65
Ticker Symbol: DESC Mexican Stock Exchange Quarter 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: DESC QUARTER: 4 YEAR: 2002
DESC, S.A. DE C.V.
CONSOLIDATED
Final Printing
DECLARATION FROM THE COMPANY OFFICIALS RESPONSIBLE:
I HEREBY SWEAR THAT THE FINANCIAL INFORMATION HEREIN SUPPLIED TO THIS
STOCK EXCHANGE, CORRESPONDING TO THE PERIOD FROM 1 OF JANUARY TO 31
OF DECEMBER OF 2002 AND 2001 IS THAT OBTAINED FROM OUR AUTHORIZED
ACCOUNTING REGISTERS AND IS RESULT OF THE APPLICATION OF THE
ACCOUNTING PRINCIPLES AND NORMS ACCEPTED AND STATED BY THE MEXICAN
INSTITUTE OF PUBLIC ACCOUNTANTS AND IN THE PROVISIONS OF THE MEXICAN
NATIONAL BANK AND STOCK COMMISSION (COMISION NACIONAL BANCARIA Y DE
VALORES).
THE ACCOUNTING PRINCIPLES AND NORMS USED BY THIS COMPANY AND THE
PROCESSING OF DATA FOR THE PERIOD TO WHICH THE SAID INFORMATION
REFERS WERE APPLIED USING THE SAME BASES AS FOR THE PREVIOUS YEAR.
-------------------------- --------------------------------------------
LIC. ARTURO D'ACOSTA RUIZ LIC. SALVADOR S. ICAZBALCETA OCAMPO CHIEF
FINANCIAL OFFICER DIRECTOR OF CONTROL
MEXICO, D.F., AT APRIL 29, 2003
66
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4: 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
General Data of the Issuer:
---------------------------
Corporate Name: Desc, S.A. de C.V.
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: desc@mail.desc.com.mx
Internet Address www.desc.com.mx
Fiscal Data of the Issuer:
--------------------------
RFC of Company: DES9405182F1
Domicile: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Responsibility for Payments:
----------------------------
Name: Lic. Alejandro de la Barreda Gomez
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
Data with respect to officers:
------------------------------
Mexican Stock
Exchange equivalent: Chairman of the Board of Directors
Title at company: Chairman and Chief Executive Officer
Name: Mr. Fernando Senderos Mestre
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
Mexican Stock
Exchange equivalent: Chief Financial Officer
Title at company: Director of Finance
Name: Lic. Arturo D'Acosta Ruiz
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: adacosta@mail.desc.com.mx
67
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4: 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
Mexican Stock
Exchange equivalent: Officer in Charge of Sending Quarterly
Financial Information
Title at company: Corporate Manager of Financial Information
Name: Lic. Alejandro De La Barreda Gomez
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: abarredag@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Alternate Officer in Charge of Sending
Quarterly Financial Information
Title at company: Corporate Comptroller
Name: Lic. Salvador Icazbalceta Ocampo
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-96
E-Mail: sicazbalceta@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer Responsible for Legal Affairs
Title at company: General Counsel
Name: Lic. Ramon Estrada Rivera
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-97
E-Mail: restrada@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Secretary of the Board of Directors
Title at company: Secretary of the Board of Directors
Name: C.P. Ernesto Vega Velasco
Address: Bosque de Ciruelos No. 130 Room 1203
City: Bosques de las Lomas
Zip Code: 11700
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-60
E-Mail: evega@mail.desc.com.mx
68
Ticker Symbol: DESC Mexican Stock Exchange Quarter 4: 2002
DESC, S.A. de C.V. Audited Information SIFIC/ICS Consolidated
Mexican Stock
Exchange equivalent: Officer in Charge of Providing Information
to Investors
Title at company: Corporate Manager of Financial Information
Name: Lic. Alejandro De La Barreda Gomez
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-97
E-Mail: abarredag@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer Authorized to Send Information via
Emisnet
Title at company: Chief Financial Officer
Name: Lic. Arturo D'Acosta Ruiz
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: adascosta@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer Authorized to Send Relevant Events
via Emisnet
Title at company: Secretary of the Board of Directors
Name: C.P. Ernesto Vega Velasco
Address: Bosque de Ciruelos No. 130 Room 1203
City: Bosques de las Lomas
Zip Code: 11700
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-60
E-Mail: evega@mail.desc.com.mx
69
EXHIBIT 3
70
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
CONSOLIDATED BALANCE SHEET
AT MARCH 31 OF 2003 AND 2002
(Thousands of Pesos)
REF S CONCEPTS QUARTER OF PRESENT FISCAL YEAR QUARTER OF PREVIOUS FISCAL YEAR
AMOUNT % AMOUNT %
1 TOTAL ASSETS 29,352,600 100% 28,386,877 100%
2 CURRENT ASSETS 8,892,454 30% 8,482,508 30%
3 CASH AND SHORT-TERM INVESTMENTS 1,106,338 4% 1,528,700 5%
4 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 3,370,046 11% 3,053,644 11%
5 OTHER ACCOUNTS AND DOCUMENTS RECEIVABLE 1,572,661 5% 866,941 3%
6 INVENTORIES 2,843,409 10% 3,014,372 10%
7 OTHER CURRENT ASSETS 0 0% 18,851 0%
8 LONG-TERM 4,426,671 15% 4,116,951 14%
9 ACCOUNTS AND DOCUMENTS RECEIVABLE (NET) 0 0% 0 0%
INVESTMENT IN SHARES OF SUBSIDIARIES AND
10 NON-CONSOLIDATED ASSOCIATED 109,561 0% 166,387 1%
11 OTHER INVESTMENTS 4,317,110 15% 3,950,564 13%
12 PROPERTY, PLANT AND EQUIPMENT 13,401,967 46% 12,928,183 46%
13 PROPERTY 6,941,019 24% 6,702,578 23%
14 MACHINERY AND INDUSTRIAL EQUIPMENT (NET) 16,446,398 56% 15,156,302 53%
15 OTHER EQUIPMENT 2,026,905 7% 1,862,377 6%
16 ACCUMULATED DEPRECIATION 12,979,135 44% 11,759,698 41%
17 CONSTRUCTION IN PROGRESS 966,780 3% 966,624 3%
18 DEFERRED ASSETS (NET) 1,556,405 5% 1,362,204 5%
19 OTHER ASSETS 1,075,103 4% 1,497,031 5%
20 TOTAL LIABILITIES 17,712,066 100% 15,652,296 100%
21 CURRENT LIABILITIES 6,994,666 39% 7,238,222 46%
22 SUPPLIERS 1,968,169 11% 1,759,091 11%
23 BANK LOANS 2,705,811 15% 3,737,641 24%
24 STOCK MARKET LOANS 0 0% 0 0%
25 TAXES TO BE PAID 800,331 5% 393,590 3%
26 OTHER CURRENT LIABILITIES 1,520,355 9% 1,347,900 9%
27 LONG-TERM LIABILITIES 8,872,202 50% 6,815,605 44%
28 BANK LOANS 6,651,564 38% 4,595,559 29%
29 STOCK MARKET LOANS 2,220,638 13% 2,220,046 14%
30 OTHER LOANS 0 0% 0 0%
31 DEFERRED LOANS 1,263,143 7% 1,151,882 7%
32 OTHER LIABILITIES 582,055 3% 446,587 3%
33 CONSOLIDATED STOCK HOLDERS' EQUITY 11,640,534 100% 12,734,581 100%
34 MINORITY INTEREST 3,871,782 33% 3,983,048 31%
35 MAJORITY INTEREST 7,768,752 67% 8,751,533 69%
36 CONTRIBUTED CAPITAL 12,557,803 108% 12,450,910 98%
37 PAID-IN CAPITAL STOCK (NOMINAL) 17,798 0% 17,798 0%
38 RESTATEMENT OF PAID-IN CAPITAL STOCK 11,369,615 98% 11,262,722 88%
39 PREMIUM ON SALES OF SHARES 1,170,390 10% 1,170,390 9%
40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
41 CAPITAL INCREASE (DECREASE) -4,789,051 -41% -3,699,377 -29%
42 RETAINED EARNINGS AND CAPITAL RESERVE 17,487,440 150% 18,687,555 147%
43 REPURCHASE FUND OF SHARES 907,079 8% 907,079 7%
44 EXCESS (SHORTFALL) IN RESTATEMENT OF HOLDER'S EQUITY -22,860,079 -196% -23,442,673 -184%
45 NET INCOME FOR THE YEAR -323,491 -3% 148,662 1%
71
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
CONSOLIDATED BALANCE SHEET
AT MARCH 31 OF 2003 AND 2002
(Thousands of Pesos)
REF S CONCEPTS QUARTER OF PRESENT QUARTER OF PREVIOUS
FISCAL YEAR FISCAL YEAR
AMOUNT % AMOUNT %
3 CASH AND SHORT-TERM INVESTMENTS 1,106,338 100% 1,528,700 100%
46 CASH 391,688 35% 207,737 14%
47 SHORT-TERM INVESTMENTS 714,650 65% 1,320,963 86%
18 DEFERRED ASSETS (NET) 1,556,405 100% 1,362,204 100%
48 AMORTIZED OR REDEEMED EXPENSES 0% 0%
49 GOODWILL 1,556,405 100% 1,362,204 100%
50 DEFERRED TAXES 0% 0%
51 OTHER 0% 0%
21 CURRENT LIABILITIES 6,994,666 100% 7,238,222 100%
52 FOREIGN CURRENCY LIABILITIES 3,936,480 56% 4,762,745 66%
53 MEXICAN PESOS LIABILITIES 3,058,186 44% 2,475,477 34%
24 STOCK MARKET LOANS
54 COMMERCIAL PAPER 0 0% 0 0%
55 CURRENT MATURITIES OF MEDIUM TERM NOTES 0 0% 0 0%
56 CURRENT MATURITIES OF BONDS 0 0% 0 0%
26 OTHER CURRENT LIABILITIES 1,520,355 100% 1,347,900 100%
57 OTHER CURRENT LIABILITIES WITH COST 0% 0%
58 OTHER CURRENT LIABILITIES WITHOUT COST 1,520,355 100% 1,347,900 100%
27 LONG-TERM LIABILITIES 8,872,202 100% 6,815,605 100%
59 FOREIGN CURRENCY LIABILITIES 5,326,948 60% 4,563,015 67%
60 MEXICAN PESOS LIABILITIES 3,545,254 40% 2,252,590 33%
29 STOCK MARKET LOANS 2,220,638 100% 2,220,046 100%
61 BONDS 0% 0%
62 MEDIUM TERM NOTES 2,220,638 100% 2,220,046 100%
30 OTHER LOANS
63 OTHER LOANS WITH COST 0 0% 0 0%
64 OTHER LOANS WITHOUT COST 0 0% 0 0%
31 DEFERRED LOANS 1,263,143 100% 1,151,882 100%
65 NEGATIVE GOODWILL 0% 0%
66 DEFERRED TAXES 1,263,143 100% 1,151,882 100%
67 OTHER 0% 0%
32 OTHER LIABILITIES 582,055 100% 446,587 100%
68 RESERVES 0 0% 0 0%
69 OTHER LIABILITIES 582,055 100% 446,587 100%
44 EXCESS (SHORTFALL) IN RESTATEMENT OF STOCK HOLDERS' -22,860,079 100% -23,442,673 100%
EQUITY
70 ACCUMULATED INCOME DUE TO MONETARY POSITION 0 0% 0 0%
71 INCOME FROM NON-MONETARY POSITION ASSETS -22,860,079 100% -23,442,673 100%
72
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
CONSOLIDATED BALANCE SHEET
OTHER CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF S CONCEPTS FISCAL YEAR FISCAL YEAR
AMOUNT AMOUNT
72 WORKING CAPITAL 1,897,788 1,244,288
73 PENSIONS FUND AND SENIORITY PREMIUMS 599,820 638,112
74 EXECUTIVES (*) 0 0
75 EMPLOYERS (*) 5,787 7,522
76 WORKERS (*) 10,336 11,891
77 CIRCULATION SHARES (*) 1,369,079,376 1,369,079,376
78 REPURCHASED SHARES (*) 0 0
(*) THESE CONCEPTS SHOULD BE EXPRESSED IN UNITS
73
CONSOLIDATED INCOME STATEMENT
FROM JANUARY THE 1ST TO MARCH 31 OF 2003 AND 2002
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF R CONCEPTS FISCAL YEAR FISCAL YEAR
AMOUNT % AMOUNT %
1 NET SALES 5,126,462 100% 4,892,226 100%
2 COST OF SALES 4,021,345 78% 3,676,690 75%
3 GROSS INCOME 1,105,117 22% 1,215,536 25%
4 OPERATING EXPENSES 887,027 17% 841,110 17%
5 OPERATING INCOME 218,090 4% 374,426 8%
6 TOTAL FINANCING COST 433,260 8% -35,795 -1%
7 INCOME AFTER FINANCING COST -215,170 -4% 410,221 8%
8 OTHER FINANCIAL OPERATIONS 9,766 0% 15,310 0%
9 INCOME BEFORE TAXES AND WORKERS' PROFIT SHARING -224,936 -4% 394,911 8%
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 92,402 2% 172,633 4%
11 NET INCOME AFTER TAXES AND WORKERS' PROFIT SHARING -317,338 -6% 222,278 5%
12 SHARE IN NET INCOME OF SUBSIDIARIES AND NON-CONSOLIDATED 0 0% 0 0%
ASSOCIATES
13 CONSOLIDATED NET INCOME OF CONTINUOUS -317,338 -6% 222,278 5%
14 INCOME OF DISCONTINUOUS OPERATIONS 0 0% 0 0%
15 CONSOLIDATED NET INCOME BEFORE EXTRAORDINARY ITEMS -317,338 -6% 222,278 5%
16 EXTRAORDINARY ITEMS NET EXPENSES (INCOME) 0 0% 25,135 1%
17 NET EFFECT AT THE BEGINNING OF THE YEAR BY CHANGES IN 0 0% 0 0%
ACCOUNTING PRINCIPLES
18 NET CONSOLIDATED INCOME -317,338 -6% 197,143 4%
19 NET INCOME OF MINORITY INTEREST 6,153 0% 48,482 1%
20 NET INCOME OF MAJORITY INTEREST -323,491 -6% 148,661 3%
74
CONSOLIDATED INCOME STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF R CONCEPTS FISCAL YEAR FISCAL YEAR
AMOUNT % AMOUNT %
1 NET SALES 5,126,462 100% 4,892,226 100%
21 DOMESTIC 2,780,695 54% 2,687,070 55%
22 FOREIGN 2,345,767 46% 2,205,156 45%
23 TRANSLATED INTO DOLLARS (***) 215,682 4% 228,436 5%
6 TOTAL FINANCING COST 433,260 100% -35,795 100%
24 INTEREST PAID 240,995 56% 226,367 -632%
25 EXCHANGE LOSSES 278,437 64% -116,626 326%
26 INTEREST EARNED 11,154 3% 46,031 -129%
27 EXCHANGE PROFITS 0 0% 0%
28 GAIN DUE TO MONETARY POSITION -75,018 -17% -99,505 278%
8 OTHER FINANCIAL OPERATIONS 9,766 100% 15,309 100%
29 OTHER NET EXPENSES (INCOME) NET 9,766 100% 15,309 100%
30 (PROFIT) LOSS ON SALE OF OWN SHARES 0 0% 0 0%
31 (PROFIT) LOSS ON SALE OF SHORT-TERM INVESTMENTS 0 0% 0 0%
10 RESERVE FOR TAXES AND WORKERS' PROFIT SHARING 92,402 100% 172,633 100%
32 INCOME TAX 88,108 95% 183,290 106%
33 DEFERRED INCOME TAX -18,182 -20% -49,194 -28%
34 WORKERS' PROFIT SHARING 22,476 24% 38,537 22%
35 DEFERRED WORKERS' PROFIT SHARING 0 0% 0 0%
75
CONSOLIDATED INCOME STATEMENT
OTHER CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF R CONCEPTS FISCAL YEAR FISCAL YEAR
AMOUNT AMOUNT
36 TOTAL SALES 5,395,195 5,093,611
37 TAX RESULT 0 0
38 NET SALES (**) 20,075,415 21,238,133
39 OPERATION INCOME (**) 897,391 1,706,580
40 NET INCOME OF MAJORITY INTEREST (**) -1,581,120 2,257
41 NET CONSOLIDATED INCOME (**) -1,750,418 186,137
76
CONSOLIDATED CASH FLOW STATEMENT
FROM JANUARY THE 1ST TO MARCH 31 OF 2003 AND 2002
(THOUSANDS OF PESOS)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF C CONCEPTS FISCAL YEAR FISCAL YEAR
AMOUNT AMOUNT
1 CONSOLIDATED NET INCOME -317,338 197,143
2 +(-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE USING CASH 334,062 296,083
3 CASH FLOW FROM NET INCOME OF THE YEAR 16,724 493,226
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL -360,326 7,966
5 CASH GENERATED (USED) IN OPERATING ACTIVITIES -343,602 501,192
6 CASH FLOW FROM EXTERNAL FINANCING -791,774 -257,684
7 CASH FLOW FROM INTERNAL FINANCING 0 -105,237
8 CASH FLOW GENERATED (USED) BY FINANCING -791,774 -362,921
9 CASH FLOW GENERATED (USED) IN INVESTMENT ACTIVITIES -196,057 -125,462
10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS -1,331,433 12,809
11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 2,437,770 1,515,890
12 CASH AND SHORT-TERM INVESTMENTS AT THE END OF PERIOD 1,106,338 1,528,700
77
CONSOLIDATED CASH FLOW STATEMENT
BREAKDOWN OF MAIN CONCEPTS
(Thousands of Pesos)
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF C CONCEPTS FISCAL YEAR FISCAL YEAR
AMOUNT AMOUNT
2 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE 334,062 296,083
13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 334,062 296,083
14 + (-) NET INCREASE (DECREASE) IN PENSIONS FUND 0 0
AND SENIORITY PREMIUMS
15 + (-) NET LOSS (PROFIT) IN MONEY EXCHANGE 0 0
16 + (-) NET LOSS (PROFIT) IN ASSETS AND LIABILITIES 0 0
ACTUALIZATION
17 + (-) OTHER ITEMS 0 0
4 CASH FLOW FROM CHANGE IN WORKING CAPITAL -360,326 7,967
18 + (-) DECREASE (INCREASE) IN ACCOUNT RECEIVABLE -840,681 -134,820
19 + (-) DECREASE (INCREASE) IN INVENTORIES 219,080 577,844
20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNT 103,942 36,384
RECEIVABLE
21 + (-) INCREASE (DECREASE) IN SUPPLIER ACCOUNT -149,352 -66,680
22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 306,686 -404,762
6 CASH FLOW FROM EXTERNAL FINANCING -791,774 -257,684
23 + SHORT-TERM BANK AND STOCK MARKET FINANCING -841,527 447,356
24 + LONG-TERM BANK AND STOCK MARKET FINANCING 49,754 -705,040
25 + DIVIDEND RECEIVED 0 0
26 + OTHER FINANCING 0 0
27 (-) BANK FINANCING AMORTIZATION 0 0
28 (-) STOCK MARKET AMORTIZATION 0 0
29 (-) OTHER FINANCING AMORTIZATION 0 0
7 CASH FLOW FROM INTERNAL FINANCING 0 -105,237
30 + (-) INCREASE (DECREASE) IN CAPITAL STOCKS 0 0
31 (-) DIVIDENDS PAID 0 -105,237
32 + PREMIUM ON SALE OF SHARES 0 0
33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0
9 CASH FLOW GENERATED (UTILIZED) IN INVESTMENT -196,056 -125,462
ACTIVITIES
34 + (-) DECREASE (INCREASE) IN STOCK INVESTMENTS OF 0 14,625
A PERMANENT NATURE
35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT -129,274 -49,085
36 (-) INCREASE IN CONSTRUCTIONS IN PROGRESS -66,783 -91,002
37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0
38 + SALE OF TANGIBLE FIXED ASSETS 0 0
39 + (-) OTHER ITEMS 0 0
78
RATIOS
CONSOLIDATED
QUARTER OF PRESENT QUARTER OF PREVIOUS
REF P CONCEPTS FISCAL YEAR FISCAL YEAR
YIELD
1 NET INCOME TO NET SALES -6.19 % 4.03 %
2 NET INCOME TO STOCK HOLDERS' EQUITY (**) -20.35 % 0.03 %
3 NET INCOME TO TOTAL ASSETS (**) -5.96 % 0.66 %
4 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0 % 0 %
5 INCOME DUE TO MONETARY POSITION TO NET INCOME -23.64 % 50.47 %
ACTIVITY
6 NET SALES TO NET ASSETS (**) 0.68 TIMES 0.75 TIMES
7 NET SALES TO FIXED ASSETS (**) 1.5 TIMES 1.64 TIMES
8 INVENTORIES ROTATION (**) 5.19 TIMES 5.26 TIMES
9 ACCOUNTS RECEIVABLE IN DAYS OF SALES 51 DAYS 49 DAYS
10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 0 % 7.73 %
LEVERAGE
11 TOTAL LIABILITIES TO TOTAL ASSETS 60.34 % 55.14 %
12 TOTAL LIABILITIES TO STOCK HOLDERS' EQUITY 1.52 TIMES 1.23 TIMES
13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 52.3 % 59.58 %
14 LONG-TERM LIABILITIES TO FIXED ASSETS 66.2 % 52.72 %
15 OPERATING INCOME TO INTEREST PAID 0.90 TIMES 1.65 TIMES
16 NET SALES TO TOTAL LIABILITIES (**) 1.13 TIMES 1.36 TIMES
LIQUIDITY
17 CURRENT ASSETS TO CURRENT LIABILITIES 1.27 TIMES 1.17 TIMES
18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 0.86 TIMES 0.76 TIMES
19 CURRENTS ASSETS TO TOTAL LIABILITIES 0.50 TIMES 0.54 TIMES
20 AVAILABLE ASSETS TO CURRENT LIABILITIES 15.82 % 21.12 %
CASH FLOW
21 CASH FLOW FROM NET INCOME TO NET SALES 0.33 % 10.08 %
22 CASH FLOW FROM CHANGES IN WORKING CAPITAL TO NET SALES -7.03 % 0.16 %
23 CASH GENERATED (USED) IN OPERATING TO INTEREST PAID -1.43 TIMES 2.21 TIMES
24 EXTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING 100 % 71 %
25 INTERNAL FINANCING TO CASH GENERATED (USED) IN FINANCING 0 % 29 %
26 ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT TO CASH GENERATED (USED) 65.94 % 39.12 %
IN INVESTMENT ACTIVITIES
(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS
79
DATA PER SHARE
REF D CONCEPTS QUARTER OF PRESENT QUARTER OF PREVIOUS
FINANCIAL YEAR FINANCIAL YEAR
AMOUNT AMOUNT
1 BASIC PROFIT PER ORDINARY SHARE (**) $ -1.12 $ 0.01
2 BASIC PROFIT PER PREFERRED SHARE (**) $ 0 $ 0
3 DILUTED PROFIT PER ORDINARY SHARE (**) $ 0 $ 0
4 CONTINUOUS OPERATING PROFIT PER COMMON SHARE(**) $ 0 $ 0
5 EFFECT OF DISCONTINUOUS OPERATING ON CONTINUOUS OPERATING PROFIT PER $ 0.00 $ 0.00
SHARE (**)
6 EFFECT OF EXTRAORDINARY PROFIT AND LOSS ON CONTINUOUS OPERATING PROFIT $ 0 $ 0
PER SHARE (**)
7 EFFECT BY CHANGES IN ACCOUNTING POLICIES ON CONTINUOUS OPERATING PROFIT $ 0 $ 0
PER SHARE (**)
8 CARRYING VALUE PER SHARE $ 5.67 $ 6.05
9 CASH DIVIDEND ACCUMULATED PER SHARE $ 0 $
10 DIVIDEND IN SHARES PER SHARE 0 SHARES 0 SHARES
11 MARKET PRICE TO CARRYING VALUE 3.66 TIMES 5.48 TIMES
12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE (**) 0 TIMES 0 TIMES
13 MARKET PRICE TO BASIC PROFIT PER PREFERRED SHARE (**) 0 0
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE
MONTHS
80
PRESS RELEASE
See Exhibit 1 to the Registrant's Form 6-K to which this document is included as
an exhibit.
SIGNIFICANT ACCOUNTING POLICIES
THE ACCOUNTING POLICIES FOLLOWED BY THE COMPANY ARE IN CONFORMITY WITH MEXICAN
GAAP, WHICH REQUIRE MANAGEMENT TO MAKE CERTAIN ESTIMATES AND USE CERTAIN
ASSUMPTIONS TO DETERMINE THE VALUATION OF SOME OF THE BALANCES INCLUDED IN THE
FINANCIAL STATEMENTS AND TO MAKE THE DISCLOSURES REQUIRED FOR INCLUSION THEREIN.
ALTHOUGH ACTUAL RESULTS MAY DIFFER FROM THOSE ESTIMATES, MANAGEMENT BELIEVES
THAT THE ESTIMATES AND ASSUMPTIONS USED WERE APPROPRIATE IN THE CIRCUMSTANCES.
THE SIGNIFICANT ACCOUNTING POLICIES FOLLOWED BY THE COMPANY ARE AS FOLLOWS:
CHANGES IN ACCOUNTING POLICIES - IN 2001 THE NEW BULLETIN C-2 "FINANCIAL
INSTRUMENTS", WENT INTO EFFECT. THIS BULLETIN ESTABLISHES THE METHODOLOGY FOR
VALUING AND RECORDING FINANCIAL INSTRUMENTS, AND REQUIRES RECOGNITION OF ALL
EFFECTS OF THE FINANCIAL INSTRUMENTS CONTRACTED ON THE BALANCE SHEET AS EITHER
ASSETS OR LIABILITIES, UNDER NET COMPREHENSIVE FINANCIAL RESULT. THE FINANCIAL
INSTRUMENTS THAT HAVE BEEN DESIGNATED AND EFFECTIVELY FUNCTION AS HEDGING OF
ASSETS AND LIABILITIES OR FUTURE TRANSACTIONS WILL AFFECT THE ASSETS,
LIABILITIES OR THE RESPECTIVE TRANSACTIONS WHEN THEY ARE REALIZED, SETTLED OR
TAKE PLACE, RESPECTIVELY.
AS OF 2001, INTERNATIONAL ACCOUNTING STANDARD 40, "INVESTMENT PROPERTIES,"
ENTERED INTO EFFECT ON A SUPPLEMENTAL BASIS, ESTABLISHING VALUATION CRITERIA FOR
PROPERTIES WHOSE PURPOSE IS TO GENERATE PROFITS OR INCREASE VALUE OR BOTH.
PURSUANT TO CIRCULAR 55 ISSUED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS,
THE VALUATION MODEL APPLICABLE TO MEXICO IS THE COST MODEL, WHICH ESTABLISHES
THAT SUCH PROPERTIES MUST BE VALUED AT ACQUISITION AND/OR CONSTRUCTION COST AND
ARE RESTATED BY APPLYING THE NPCI, LESS THE RESPECTIVE ACCUMULATED DEPRECIATION.
BEGINNING JANUARY 2000, THE COMPANY ADOPTED THE PROVISIONS OF NEW BULLETIN D-4,
"ACCOUNTING FOR INCOME AND ASSET TAXES AND EMPLOYEE PROFIT SHARING". THE EFFECT
OF THE ADOPTION WAS TO RECOGNIZE, AN INITIAL LONG-TERM LIABILITY FOR DEFERRED
INCOME TAXES AFFECTING STOCKHOLDERS' EQUITY UNDER "CUMULATIVE EFFECT OF INITIAL
RECOGNITION OF DEFERRED INCOME TAXES"
AS A RESULT OF THE IMPLEMENTATION OF THE ADOPTION OF BULLETIN D-4 MENTIONED
ABOVE, THE COMPANY CHANGED ITS METHOD FOR RECORDING THE EFFECT FROM TAX
CONSOLIDATION. UNTIL 1999, IT WAS RECORDED IN THE YEAR IN WHICH THE RESPECTIVE
ANNUAL CONSOLIDATED TAX RETURN WAS FILED. BEGINNING IN 2000, THIS BENEFIT IS
RECORDED IN RESULTS OF THE YEAR IN WHICH THE BENEFIT IS GENERATED.
BASIS OF CONSOLIDATION - THE ACCOMPANYING CONSOLIDATED FINAN-CIAL STATEMENTS
INCLUDE THOSE OF DESC AND THE SUBSIDIARIES IN WHICH THERE IS STOCKHOLDING AND
ADMINISTRATIVE CONTROL. ALL SIGNIFICANT INTERCOMPANY TRANSACTIONS AND BALANCES
HAVE BEEN ELIMINATED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS.
THE EQUITY IN NET INCOME (LOSS) AND CHANGES IN STOCKHOLDERS' EQUITY OF THOSE
SUBSIDIARIES THAT WERE ACQUIRED OR SOLD, HAS BEEN INCLUDED IN THE FINANCIAL
STATEMENTS AS OF OR UP TO THE DATE ON WHICH THE TRANSACTIONS TOOK PLACE AND WAS
RESTATED IN TERMS OF THE PURCHASING POWER AS OF THE END OF THE LATEST PERIOD.
INVESTMENTS IN SHARES OF ASSOCIATED COMPANIES AND UNCON-SOLIDATED SUBSIDIARIES
ARE RECORDED USING THE EQUITY METHOD.
81
TRANSLATION OF FINANCIAL STATEMENTS OF SUBSIDIARIES - THE FINANCIAL STATEMENTS
OF FOREIGN SUBSIDIARIES, WHOSE OPERATIONS ARE NOT AN INTEGRAL PART OF THE
MEXICAN COMPANIES ("FOREIGN ENTITIES"), ARE RESTATED FOR THE INFLATION RATE OF
THE RESPECTIVE FOREIGN COUNTRY AND ARE TRANSLATED INTO MEXICAN PESOS AT THE
EXCHANGE RATE IN EFFECT AT THE END OF THE YEAR. THE FINANCIAL STATEMENTS OF
FOREIGN SUBSIDIARIES, WHOSE OPERATIONS ARE AN INTEGRAL PART OF THE MEXICAN
COMPANIES ("INTEGRATED FOREIGN OPERATIONS"), ARE TRANSLATED USING YEAREND
EXCHANGE RATES FOR MONETARY ITEMS AND HISTORICAL EXCHANGE RATES FOR NONMONETARY
ITEMS, AND THE TRANSLATED FINANCIAL STATEMENTS ARE THEN RESTATED USING THE
NATIONAL CONSUMER PRICE INDEX (NCPI) OF MEXICO. THE EFFECTS OF TRANSLATING
FOREIGN ENTITIES ARE RECORDED DIRECTLY IN STOCKHOLDERS' EQUITY IN THE
"CUMULATIVE EFFECT OF RESTATEMENT" ACCOUNT. THE EFFECTS OF TRANSLATING
INTEGRATED FOREIGN OPERATIONS ARE INCLUDED IN THE "INTEGRAL FINANCING RESULT" OF
THE YEAR IN THE "MONETARY POSITION GAIN" ACCOUNT. SUCH EFFECTS ARE NOT
SIGNIFICANT.
RECOGNITION OF THE EFFECTS OF INFLATION - THE COMPANIES RESTATE ALL OF THEIR
FINANCIAL STATEMENTS IN TERMS OF THE PURCHASING POWER OF THE MEXICAN PESO AS OF
THE END OF THE LATEST PERIOD, THEREBY COMPREHENSIVELY RECOGNIZING THE EFFECTS OF
INFLATION. THE PRIOR YEAR AMOUNTS PRESENTED HEREIN DIFFER FROM THOSE ORIGINALLY
REPORTED IN TERMS OF MEXICAN PESOS OF THE RESPEC-TIVE YEAR. CONSEQUENTLY, ALL
FINANCIAL STATEMENT AMOUNTS ARE COMPARABLE, BOTH FOR THE CURRENT AND THE PRIOR
YEAR, BECAUSE ALL ARE STATED IN TERMS OF MEXICAN PESOS OF THE SAME PURCHASING
POWER.
CASH EQUIVALENTS - INVESTMENTS IN MARKETABLE SECURITIES CONSIST MAINLY OF
ACCEPTANCES, BANK PROMISSORY NOTES, AND PAPER ISSUED BY THE MEXICAN AND UNITED
STATES OF AMERICA GOVERNMENTS, AT MARKET (COST PLUS ACCRUED INTEREST).
INVENTORIES AND COST OF SALES - INVENTORIES ARE ORIGINALLY RECORDED AT THEIR
ACQUISITION OR MANUFACTURING COST AND RESTATED TO THEIR SPECIFIC NET REPLACEMENT
COST WITHOUT EXCEEDING NET REALIZABLE VALUE. SUBSTANTIALLY ALL SUBSIDIARIES
COMPUTE COST OF SALES USING THE REPLACEMENT COST AT THE TIME OF SALE.
LAND HELD FOR DEVELOPMENT AND REAL ESTATE PROJECTS - UNDEVELOPED LAND REPRESENTS
LAND RESERVES THAT, TOGETHER WITH DEVELOPED LAND AND ONGOING AND COMPLETED
PROJECTS, ARE CONSIDERED NON-CURRENT INVENTORIES, SINCE THEY ARE HELD FOR SALE.
THEY INCLUDE ACQUISITION, DEVELOPMENT AND CONSTRUCTION COSTS AND ARE RESTATED IN
U.S. DOLLARS BASED ON THE SLIPPAGE OF THE MARKET EXCHANGE RATE FOR THE PURPOSE
OF SHOWING VALUES IN ACCORDANCE WITH THE CURRENT SITUATION OF THE REAL ESTATE
MARKET.
THE COMPANY CAPITALIZES THE NET COMPREHENSIVE FINANCING COST ON DEBT USED TO
FINANCE REAL ESTATE PROJECTS IN PROGRESS, IN ADDITION TO THEIR CONSTRUCTION AND
DEVELOPMENT COSTS.
INVESTMENT IN SHARES - INVESTMENT IN SHARES HAS BEEN RECORDED USING THE EQUITY
METHOD, BASED ON THE FINANCIAL STATEMENTS PREPARED ON THE SAME BASIS AS THOSE OF
THE COMPANY, AND IS PRESENTED UNDER OTHER ASSETS IN THE BALANCE SHEET.
PROPERTY, PLANT AND EQUIPMENT - THIS ITEMS IS RECORDED AT ACQUISITION COST AND
IS RESTATED BY USING NCPI FACTORS. FOR FOREIGN FIXED ASSETS, THEIR ACQUISITION
COST IS RESTATED FOR INFLATION OF THE COUNTRY OF ORIGIN AND THE FLUCTUATION OF
THE MEXICAN PESO AGAINST SUCH CURRENCY IS CONSIDERED.
DEPRECIATION IS CALCULATED BY THE STRAIGHT-LINE METHOD BASED ON THE REMAINING
USEFUL LIVES OF THE ASSETS.
82
THE COMPANIES CAPITALIZE THE NET COMPREHENSIVE FINANCING COST ON DEBT USED TO
FINANCE CONSTRUCTION IN PROGRESS AND THE INSTALLATION OF EQUIPMENT, UNTIL THEY
ARE PLACED IN SERVICE.
IMPAIRMENT OF FIXED ASSETS - THE AMOUNTS SHOWN IN THE ACCOMPANYING CONSOLIDATED
STATEMENTS OF INCOME BASICALLY REFER TO THE REDUCTION IN VALUE OF PROPERTY AND
EQUIPMENT OF SOME PRODUCTIVE FACILITIES, IN ORDER TO REFLECT THEIR REALIZABLE
VALUE IN ACCORDANCE WITH THE CURRENT SITUATION OF SUCH BUSINESSES.
GOODWILL - THE GOODWILL RESULTING FROM ACQUISITIONS MADE IN EXCESS OF BOOK VALUE
IS AMORTIZED OVER PERIODS RANGING FROM FIVE TO 20 YEARS, THE TERMS OVER WHICH
THE BENEFITS FROM THE INVESTMENT WILL BE REALIZED.
FINANCIAL INSTRUMENTS - FINANCIAL ASSETS AND LIABILITIES RESULTING FROM ANY TYPE
OF FINANCIAL INSTRUMENT, EXCEPT FOR INVESTMENTS IN FINANCIAL INSTRUMENTS HELD TO
MATURITY, ARE PRESENTED IN THE BALANCE SHEET AT FAIR VALUE. THE EFFECTS OF THE
VALUATION OF A FINANCIAL ASSET OR LIABILITY ARE RECOGNIZED IN RESULTS OF
OPERATIONS OF THE RESPECTIVE PERIOD. INVESTMENTS IN FINANCIAL INSTRUMENTS HELD
TO MATURITY ARE VALUED AT ACQUISITION COST. THE COSTS AND YIELDS OF FINANCIAL
INSTRUMENTS ARE RECOGNIZED IN RESULTS OF THE PERIOD IN WHICH THEY OCCUR.
DERIVATE FINANCIAL INSTRUMENTS - THE INTERNAL CONTROL SYSTEM ESTABLISHED BY THE
COMPANY INCLUDES POLICIES AND PROCEDURES TO MANAGE ITS EXPOSURE TO FLUCTUATIONS
IN FOREIGN CURRENCY EXCHANGE RATES USING DERIVATIVE FINANCIAL INSTRUMENTS. THESE
INSTRUMENTS ARE TRADED ONLY WITH AUTHORIZED INSTITUTIONS AND READING LIMITS HAVE
BEEN ESTABLISHED FOR EACH INSTITUTION. THE COMPANY DOES NOT CARRY OUT
TRANSACTIONS WITH DERIVATIVE FINANCIAL INSTRUMENTS FOR THE PURPOSE OF
SPECULATION.
THE DERIVATIVE FINANCIAL INSTRUMENTS CURRENTLY USED BY THE COMPANY ARE PRIMARILY
HEDGE CONTRACTS TO REDUCE ITS EXPOSURE TO EXCHANGE RATE FLUCTUATIONS. PREMIUMS
PAID ARE AMORTIZED OVER THE TERM OF THE DERIVATIVE FINANCIAL INSTRUMENT USING
THE UNPAID BALANCE OF THE LIABILITY BEING HEDGED.
DERIVATIVE FINANCIAL INSTRUMENTS IDENTIFIED AS HEDGES ARE VALUED BY APPLYING THE
SAME VALUATION CRITERIA USED FOR THE ASSETS OR LIABILITIES HEDGED, AND THE
EFFECTS OF THEIR VALUATION ARE RECOGNIZED IN RESULTS OF OPERATIONS, NET OF
COSTS, EXPENSES, OR REVENUE FROM THE ASSETS OR LIABILITIES WHOSE RISKS ARE BEING
HEDGED. THE FINANCIAL ASSETS OR LIABILITIES GENERATED BY THESE INSTRUMENTS ARE
PRESENTED IN THE BALANCE SHEET AS A REDUCTION OF THE LIABILITIES OR ASSETS WHOSE
RISKS ARE BEING HEDGED.
INCOME TAX, ASSET TAX AND EMPLOYEE PROFIT SHARING - INCOME TAX (ISR) AND
EMPLOYEE STATUTORY PROFIT-SHARING (PTU) ARE RECORDED IN RESULTS OF THE YEAR IN
WHICH THEY ARE INCURRED. DEFERRED INCOME TAX ASSETS AND LIABILITIES ARE
RECOGNIZED FOR TEMPORARY DIFFERENCES RESULTING FROM COMPARING THE BOOK AND TAX
VALUES OF ASSETS AND LIABILITIES, PLUS ANY FUTURE BENEFITS FROM TAX LOSS
CARRYFORWARDS DEFERRED INCOME TAX ASSETS ARE REDUCES BY ANY BENEFITS THAT, IN
THE OPINION OF MANAGEMENT, WILL PROBABLY NOT BE REALIZED. DEFERRED PTU IS
DERIVED FROM TEMPORARY DIFFERENCES BETWEEN THE BOOK RESULT AND INCOME FOR PTU
PURPOSES AND IS RECOGNIZED ONLY WHEN IT CAN BE REASONABLY ASSUMED THAT THEY WILL
GENERATE A LIABILITY OR BENEFIT, AND THERE IS NO INDICATION THAT THIS SITUATION
WILL CHANGE IN SUCH A WAY THAT THE LIABILITIES WILL NOT BE PAID OR BENEFITS WILL
NOT BE REALIZED.
THE ASSET TAX PAID THAT IS EXPECTED TO BE RECOVERABLE IS RECORDED AS AN ADVANCE
PAYMENT OF INCOME TAX AND IS PRESENTED ON THE BALANCE SHEET WITH DEFERRED ISR.
EMPLOYEE RETIREMENT OBLIGATIONS - THE LIABILITY FROM SENIORITY PREMIUMS,
PENSIONS AND RETIREMENT PAYMENTS, WHICH IS SIMILAR TO A PENSION, IS RECORDED AS
ACCRUED, AND IS CALCULATED BY INDEPENDENT ACTUARIES BASED ON THE PROJECTED
83
CREDIT UNIT METHOD, AT REAL INTEREST RATES. THEREFORE, THE LIABILITY IS BEING
RECOGNIZED WHICH, AT PRESENT VALUE, IS EXPECTED TO COVER THE OBLIGATION FOR
THESE BENEFITS AT THE ESTIMATED RETIREMENT DATE OF ALL THE COMPANIES' EMPLOYEES.
SEVERANCE PAYMENTS ARE CHARGED TO RESULTS WHEN THEY ARE DETERMINED TO BE
PAYABLE.
RESTATED STOCKHOLDERS' EQUITY - THIS ITEM CONSISTS OF MONETARY POSITION RESULT
ACCUMULATED THROUGH THE FIRST RESTATEMENT OF THE FINANCIAL STATEMENTS AND THE
GAIN (LOSS) FROM HOLDING MONETARY ASSETS, BECAUSE PRICE LEVELS INCREASED ABOVE
(BELOW) INFLATION.
REVENUE RECOGNITION - REVENUES OF THE SUBSIDIARIES OF THE AUTOPARTS, CHEMICAL
AND FOOD SECTORS ARE RECOGNIZED WHEN THE INVENTORIES ARE DELIVERED OR SHIPPED TO
CUSTOMERS AND CUSTOMERS ASSUME RESPONSIBILITY FOR THEM.
THE REAL ESTATE SECTOR RECOGNIZES THE REVENUES AND COSTS FROM SALES OF URBANIZED
PLOTS OF LAND IN RESULTS WHEN THE SALES ARE FORMALIZED AND THE DEPOSITS SECURING
THE TRANSACTION ARE RECEIVED. THE INDIVIDUAL ASSIGNMENT OF THE COST OF THE LAND
AND REAL ESTATE PROJECT TAKES INTO CONSIDERATION THE RELATIVE SELLING PRICE OF
THE TOTAL PROJECT SO AS TO MAINTAIN THE SAME PROFIT MARGIN THROUGHOUT THE
PROJECT.
REVENUES AND COSTS FROM REAL ESTATE PROJECTS ARE RECORDED ORIGINALLY AS A
DEFERRED CREDIT FOR CONSTRUCTION COMMITMENTS AND AS REAL ESTATE PROJECTS IN
PROCESS, AND ARE RECOGNIZED IN RESULTS BASED ON THE "PERCENTAGE OF COMPLETION"
METHOD. THEREFORE, REVENUE IS MATCHED WITH COSTS INCURRED TO REACH THE STAGE OF
COMPLETION TO TERMINATE THE PROJECT. IF THE LAST ESTIMATED COSTS DETERMINED
EXCEED THE TOTAL REVENUES CONTRACTED, THE RESPECTIVE PROVISION IS CHARGED TO
RESULTS OF THE YEAR.
INTEGRAL FINANCIAL RESULT - THIS REPRESENTS THE NET EFFECT OF INTEREST EARNED
AND INCURRED, EXCHANGE GAINS AND LOSSES AND MONETARY POSITION GAIN OR LOSS ON,
WHICH IS THE RESULT OF MAINTAINING MONETARY ASSETS AND LIABILITIES WHOSE REAL
PURCHASING POWER IS MODIFIED BY THE EFFECTS OF INFLATION.
FOREIGN CURRENCY TRANSACTIONS ARE RECORDED AT THE EFFECTIVE EXCHANGE RATE AT THE
DATE THE TRANSACTIONS ARE CARRIED OUT AND FOREIGN CURRENCY ASSETS AND
LIABILITIES ARE ADJUSTED TO THE EXCHANGE RATE EFFECTIVE AT YEAREND.
INCOME PER SHARE - BASIC INCOME (LOSS) PER ORDINARY SHARE IS CALCULATED BY
DIVIDING CONSOLIDATED NET INCOME (LOSS) OF MAJORITY STOCKHOLDERS BY THE WEIGHTED
AVERAGE NUMBER OF SHARES OUTSTANDING DURING THE YEAR.
COMPREHENSIVE INCOME (LOSS) - COMPREHENSIVE INCOME (LOSS IS COMPRISED OF THE NET
CONSOLIDATED INCOME FOR THE PERIOD PLUS (LESS) ANY GAINS OR LOSSES THAT UNDER
SPECIFIC ACCOUNTING REGULATIONS ARE RECORDED DIRECTLY IN STOCKHOLDERS' EQUITY,
SUCH AS THE GAIN OR LOSS FROM HOLDING NONMONETARY ASSETS.
84
ANNEX 3
SHARE OWNERSHIP
NUMBER OF
COMPANY NAME MAIN ACTIVITIES SHARES OWNERSHIP (THOUSANDS OF PESOS)
ACQUISITION PRESENT
SUBSIDIARIES COST VALUE
BOSQUES DE LAS LOMAS, S.A. DE C.V. REAL ESTATE SECTOR 43,189,000 100.00 164,322 164,322
CLUB ECUESTRE CHILUCA, S.A. DE C.V. REAL ESTATE SECTOR 15,274,170 78.00 433,433 433,433
PROMOCIONES BOSQUES, S.A. DE C.V. REAL ESTATE SECTOR 82,212,000 100.00 422,240 422,240
CORPORATIVO DINE, S.A. DE C.V REAL ESTATE SECTOR 238,390,000 100.00 45,895 45,895
HOLDING DICOMEX, S.A. DE C.V REAL ESTATE SECTOR 141,740,000 50.00 79,172 79,172
PROMOTORA INMOBILIARIA HIDALGUENSE, S.A DE C.V. REAL ESTATE SECTOR 12,876,272 59.31 12,505 12,505
TURISTICA AKKO, S.A. DE C.V. REAL ESTATE SECTOR 10,000 100.00 -1,460 -1,460
BOSQUES DE SANTA FE, S.A. DE C.V. REAL ESTATE SECTOR 50 98.00 -47,896 -47,896
CANA DE SANTA FE, S.A DE C.V. REAL ESTATE SECTOR 278,000,000 73.00 826,884 826,884
INMOBILIARIA DINE, S.A. DE C.V. REAL ESTATE SECTOR 10,010,200 100.00 65,005 65,005
CANTILES DE MITA REAL ESTATE SECTOR 54,326,326 95.90 1,372,696 1,372,696
CLUB DE GOLF PUNTA MITA, S.A. DE C.V. REAL ESTATE SECTOR 12,410,869 87.69 138,768 138,768
RESORT CLUB PUNTA MITA, S.A. DE C..V REAL ESTATE SECTOR 50,000 100.00 9,611 9,611
UNIK, S.A. DE C.V. AUTOMOTIVE SECTOR 700,968,215 100.00 3,464,584 3,464,584
CORFUERTE, S.A. DE C.V. FOOD SECTOR 643,205,800 77.30 405,590 405,590
AGROKEN, S.A. DE C.V. FOOD SECTOR 366,460,475 100.00 530,847 530,847
AUTHENTIC SPECIALITY FOODS FOOD SECTOR 291,101 81.31 1,093,760 1,093,760
AGROBIOS CORPORATIVO FOOD SECTOR 550,000 100.00 36,823 36,823
CID CENTRO DE INVESTIGACION Y DESARROLLO CHEMICAL SECTOR 190,386,900 100.00 23,864 23,864
DIRECCION IRSA, S.A. DE C.V. CHEMICAL SECTOR 4,201,745 100.00 -51,434 -51,434
FENOQUIMIA, S.A. DE C.V. CHEMICAL SECTOR 4,998,994 100.00 -212,614 -212,614
FORESTACIONES OPERATIVAS DE MEXICO, S.A. CHEMICAL SECTOR 31,658 100.00 18,625 18,625
GIRSA CORPORATIVO, S.A. DE C.V. CHEMICAL SECTOR 5,509,998 100.00 22,123 22,123
GIRSA INMOBILIARIA, S.A. DE C.V. CHEMICAL SECTOR 615,124,720 100.00 721,122 721,122
H2ORIZONTES, S.A. DE C.V. CHEMICAL SECTOR 49,950 100.00 -4,708 -4,708
PRODUCTOS DE CONSUMO RESISTOL, S.A. DE C.V. CHEMICAL SECTOR 691,180,902 100.00 -38,144 -38,144
QUIMIR, S.A. DE C.V. CHEMICAL SECTOR 1,930,986 100.00 87,213 87,213
RESIRENE, S.A. DE C.V. CHEMICAL SECTOR 236,058,979 100.00 202,272 202,272
TECNO INDUSTRIA RF, S.A. DE C.V. CHEMICAL SECTOR 10,673,496 100.00 57,619 57,619
REXCEL, S.A. DE C.V. CHEMICAL SECTOR 1,000,997 100.00 120,604 120,604
INDUSTRIAS NEGROMEX, S.A. DE C.V. CHEMICAL SECTOR 410,044,831 100.00 605,281 605,281
DYNASOL ELASTOMEROS, S.A. (ESPANA) CHEMICAL SECTOR 1 50.00 408,483 408,483
DYNASOL GESTION, S.A. CHEMICAL SECTOR 1 50.00 2,008 2,008
DYNASOL, L.L.C. CHEMICAL SECTOR 1 50.00 12,581 12,581
PARATEC ELASTOMERS, L.L.C. CHEMICAL SECTOR 1 98.93 29,015 29,015
PlASTIGLAS DE MEXICO, S.A. DE C.V. CHEMICAL SECTOR 200,778,189 95.00 88,038 88,038
PARATEC, S.A. de C.V. CHEMICAL SECTOR 73,960 28.70 183,111 183,111
AEROPYCSA, S.A. DE C.V. SERVICES COMPANIES 648,309,280 100 113,047 113,047
CORPORATIVO ARCOS SERVICES COMPANIES 260,524,996 100 57,344 57,344
PROMOCION Y CONTROL, S.A. DE C.V. SERVICES COMPANIES 1,254,000 100 6,096 6,096
BIG SOFT SERVICES COMPANIES 1,449,999 100 6,910 6,910
PACIFIC INTERNATIONAL AIRWAYS, S.A. DE C.V. SERVICES COMPANIES 244,498 100 1,675 1,675
SERCOR SERVICES COMPANIES 449 100 -1,150 -1150
BIOQUIMEX CHEMICAL SECTOR 28,922,181 100.00 9,581 9,581
OTHER SUBSIDIARIES (4) (NO. OF SUBS.:) 1 0 126 126
Associates
1. Others Services 1 100 11,521,467 11,521,468
TOTAL OTHER INVESTMENTS 109,561 109,561
Other Permanent Investments 4,317,110
Total 15,948,139
85
ANNEX 4
PROPERTY, PLANT AND EQUIPMENT
(THOUSANDS OF PESOS)
CONCEPT ACCUMULATED DEPRECIATION ON CARRYING VALUE
ACQUISITION COST DEPRECIATION CARRYING VALUE REVALUATION REVALUATION + REV - DEP
DEPRECIATION ASSETS
PROPERTY 1,792,610 398,573 1,394,037 4,012,814 1,941,166 3,465,685
MACHINERY 6,776,446 3,334,649 3,441,797 9,669,952 6,003,797 7,107,952
TRANSPORT EQUIPMENT 190,984 124,733 66,251 77,740 23,177 120,814
OFFICE EQUIPMENT 113,690 68,533 45,157 78,569 49,342 74,384
COMPUTER EQUIPMENT 313,242 277,180 36,062 81,814 75,107 42,769
OTHER 351,592 170,051 181,541 819,274 512,827 487,988
TOTAL DEPRECIATION 9,538,564 4,373,719 5,164,845 14,740,163 8,605,416 11,299,592
NON DEPRECIATION ASSETS
GROUNDS 260,403 0 260,403 875,192 0 1,135,595
CONSTRUCTIONS IN PROCESS 966,780 0 966,780 0 0 966,780
OTHER 0 0 0 0 0 0
TOTAL NON DEPRECIABLES 1,227,183 0 1,227,183 875,192 0 2,102,375
TOTAL 10,765,747 4,373,719 6,392,028 15,615,355 8,605,416 13,401,967
86
ANNEX 5
LOAN BREAKDOWN
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
STOCK EXCHANGE CODE:DESC QUARTER: 1 YEAR: 2003
--------------------------------------------------------------------------------
ANNEX 5
--------------------------------------------------------------------------------
CREDITS BREAKDOWN
--------------------------------------------------------------------------------
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
-------------------------------- ---------------- ------------- ------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION RATE OF DENOMINATED
DATE INTEREST IN PESOS
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
BANKS UNTIL 1 MORE THAN
YEAR 1 YEAR
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
WITH WARRANTY
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
DEUTSCHE BANK 15-Oct-07 8.75 0 0
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
FINANCIAL INSTITUTIONS
-------------------------------- ---------------- ------------- ----------- ------------
IFC 15-Feb-04 3.47 0 0
-------------------------------- ---------------- ------------- ----------- ------------
IFC 15-Feb-06 3.47 0 0
-------------------------------- ---------------- ------------- ----------- ------------
IFC 15-Sep-09 4.98 0 0
-------------------------------- ---------------- ------------- ----------- ------------
IFC 15-Sep-09 10.35 0 0
-------------------------------- ---------------- ------------- ----------- ------------
DEG 28-Dec-06 4.13 0 0
-------------------------------- ---------------- ------------- ----------- ------------
CITIBANK NA (SYNDICATE) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
DEUTSCHE BANK (SYNDICATE) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
JP MORGAN CHASE BANK (SYNDICATE) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK (SYNDICATE) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
EXPORT DEVELOPMENT CANADA 12-Jun-05 2.81 0 0
(SYNDICATE)
-------------------------------- ---------------- ------------- ----------- ------------
BBVA BANCOMER (SYNDICATE) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
CREDIT LYONNAIS (SYNDICATE) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
CREDIT SUISSE FIRST BOSTON 12-Jun-05 2.81 0 0
(SYNDICATE)
-------------------------------- ---------------- ------------- ----------- ------------
HSBC BANK (SINDICADO) 12-Jun-05 2.81 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BAYERISCHE HYPO-UND 12-Jun-05 2.81 0 0
VEREINSBANK (SYNDICATE)
-------------------------------- ---------------- ------------- ----------- ------------
CITIBANK NA (SYNDICATE) 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
DEUTSCHE BANK (SYNDICATE) 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
JP MORGAN CHASE BANK (SYNDICATE) 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCOMEXT 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
87-A
-------------------------------- ---------------- ------------- ------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION RATE OF DENOMINATED
DATE INTEREST IN PESOS
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
BANKS UNTIL 1 MORE THAN
YEAR 1 YEAR
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
WITH WARRANTY
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
DEUTSCHE BANK 15-Oct-07 8.75 0 0
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
FINANCIAL INSTITUTIONS
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK (SYNDICATE) 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
EXPORT DEVELOPMENT CANADA 12-Jun-07 3.06 0 0
(SYNDICATE)
-------------------------------- ---------------- ------------- ----------- ------------
TORONTO DOMINION (SYNDICATE) 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BBVA BANCOMER (SYNDICATE) 12-Jun-07 3.06 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BBVA BANCOMER (SYNDICATE) 26-Jun-07 9.30 0 355,000
-------------------------------- ---------------- ------------- ----------- ------------
BANCO SANTANDER MEXICANO
(SYNDICATE) 26-Jun-07 9.30 0 355,000
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INVEX (SYNDICATE) 26-Jun-07 9.30 0 200,000
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK MEXICO (SYNDICATE) 26-Jun-07 9.30 0 100,000
-------------------------------- ---------------- ------------- ----------- ------------
IXE BANCO (SYNDICATE) 26-Jun-07 9.30 0 40,000
-------------------------------- ---------------- ------------- ----------- ------------
BANCO MERCANTIL DEL NORTE
(SYNDICATE) 26-Jun-07 9.30 0 250,000
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 1-Sep-03 3.85 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 1-Dec-04 3.85 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 12-May-03 3.85 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 18-Aug-03 3.80 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 10-Jun-03 4.90 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 16-Jun-03 4.90 0 0
-------------------------------- ---------------- ------------- ----------- ------------
IXE BANCO 30-May-03 3.75 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BBVA BANCOMER 8-Apr-03 3.02 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 10-Nov-03 2.82 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 11-Jun-03 2.61 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 16-May-08 8.06 1,500 10,410
-------------------------------- ---------------- ------------- ----------- ------------
California Commerce B. 2-Aug-03 2.25 0 0
-------------------------------- ---------------- ------------- ----------- ------------
California Commerce B. 3-Apr-03 3.25 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 9-Jul-03 3.85 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO INBURSA 12-May-03 3.85 0 0
-------------------------------- ---------------- ------------- ----------- ------------
Other Financial Leases 31-Dec-10 8.40 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO SANTANDER MEXICANO 31-Jan-07 10.54 1,773 11,261
-------------------------------- ---------------- ------------- ----------- ------------
BANCO SANTANDER MEXICANO 31-Jan-07 8.20 1,026 2,945
-------------------------------- ---------------- ------------- ----------- ------------
BANCO SANTANDER MEXICANO 28-May-03 2.66 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 3-Jun-03 2.59 0 0
-------------------------------- ---------------- ------------- ----------- ------------
88-A
-------------------------------- ---------------- ------------- ------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION RATE OF DENOMINATED
DATE INTEREST IN PESOS
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
BANKS UNTIL 1 MORE THAN
YEAR 1 YEAR
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
WITH WARRANTY
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
DEUTSCHE BANK 15-Oct-07 8.75 0 0
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
FINANCIAL INSTITUTIONS
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 4-Jun-03 2.48 0 0
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK 13-Jun-03 2.28 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 14-Aug-03 2.99 0 0
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK 20-Mar-04 2.29 0 0
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK 21-Dec-03 2.39 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 16-Jun-03 2.39 0 0
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK 30-Aug-03 7.75 0 0
-------------------------------- ---------------- ------------- ----------- ------------
COMERICA BANK 28-Feb-04 7.75 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 8-Aug-03 2.73 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BBVA BANCOMER 12-Sep-03 2.25 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 8-Aug-03 2.72 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 16-Jul-03 2.58 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 23-Apr-03 2.36 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 4-Jun-03 2.48 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 5-Sep-03 2.69 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 8-Aug-03 2.73 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 8-Aug-03 2.72 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BBVA BANCOMER 12-Sep-03 2.25 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 23-Apr-03 2.36 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANAMEX-CITIBANK 13-Jun-03 2.27 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 21-May-03 2.49 0 0
-------------------------------- ---------------- ------------- ----------- ------------
BANCO NAL. COMERCIO EXTERIOR 5-Sep-03 2.69 0 0
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
TOTAL BANKS 4,299 1,324,616
-------------------------------- ---------------- ------------- ----------- ------------
-------------------------------- ---------------- ------------- ----------- ------------
** TABLE CONTINUED **
89-A
ANNEX 5
LOAN BREAKDOWN
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
STOCK EXCHANGE CODE:DESC QUARTER: 1 YEAR: 2003
--------------------------------------------------------------------------------
ANNEX 5
--------------------------------------------------------------------------------
CREDITS BREAKDOWN
--------------------------------------------------------------------------------
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
-------------------------------- ---------------------------------------------------------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
WITH NATIONAL ENTITIES (THOUSANDS OF $)
-------------------------------- ---------------------------------------------------------------------------
TIME INTERVAL
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANKS CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEARS YEARS YEARS YEARS
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
WITH WARRANTY
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
DEUTSCHE BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
FINANCIAL INSTITUTIONS
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
IFC 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
IFC 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
IFC 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
IFC 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
DEG 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
CITIBANK NA (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
DEUTSCHE BANK (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
JP MORGAN CHASE BANK (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
EXPORT DEVELOPMENT CANADA 0 0 0 0 0 0
(SYNDICATE)
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BBVA BANCOMER (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
CREDIT LYONNAIS (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
CREDIT SUISSE FIRST BOSTON 0 0 0 0 0 0
(SYNDICATE)
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
HSBC BANK (SINDICADO) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BAYERISCHE HYPO-UND 0 0 0 0 0 0
VEREINSBANK (SYNDICATE)
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
CITIBANK NA (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
DEUTSCHE BANK (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
JP MORGAN CHASE BANK (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCOMEXT 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
87-B
-------------------------------- ---------------------------------------------------------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
WITH NATIONAL ENTITIES (THOUSANDS OF $)
-------------------------------- ---------------------------------------------------------------------------
TIME INTERVAL
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANKS CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEARS YEARS YEARS YEARS
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
WITH WARRANTY
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
DEUTSCHE BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
FINANCIAL INSTITUTIONS
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
EXPORT DEVELOPMENT CANADA 0 0 0 0 0 0
(SYNDICATE)
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
TORONTO DOMINION (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BBVA BANCOMER (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BBVA BANCOMER (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO SANTANDER MEXICANO
(SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INVEX (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK MEXICO (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
IXE BANCO (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO MERCANTIL DEL NORTE 0 0 0 0 0 0
(SYNDICATE)
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 318,860 0 160,500 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 0 0 374,500 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 48,150 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 96,300 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 48,150 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 74,900 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
IXE BANCO 63,130 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BBVA BANCOMER 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
California Commerce B. 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
California Commerce B. 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 111,280 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO INBURSA 14,285 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
Other Financial Leases 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO SANTANDER MEXICANO 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO SANTANDER MEXICANO 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO SANTANDER MEXICANO 53,500 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
88-B
-------------------------------- ---------------------------------------------------------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
WITH NATIONAL ENTITIES (THOUSANDS OF $)
-------------------------------- ---------------------------------------------------------------------------
TIME INTERVAL
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANKS CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEARS YEARS YEARS YEARS
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
WITH WARRANTY
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
DEUTSCHE BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
FINANCIAL INSTITUTIONS
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 21,400 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
COMERICA BANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 48,150 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BBVA BANCOMER 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 32,100 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 16,451 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 7,223 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 50,290 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 26,750 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BBVA BANCOMER 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 55,640 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
BANCO NAL. COMERCIO EXTERIOR 9,496 0 0 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
TOTAL BANKS 1,096,055 0 535,000 0 0 0
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
-------------------------------- ------------ ------------ ----------- ------------ ------------ -----------
** TABLE CONTINUED **
89-B
ANNEX 5
LOAN BREAKDOWN
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
STOCK EXCHANGE CODE:DESC QUARTER: 1 YEAR: 2003
--------------------------------------------------------------------------------
ANNEX 5
--------------------------------------------------------------------------------
CREDITS BREAKDOWN
--------------------------------------------------------------------------------
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
-------------------------------- ------------------------------------------------------------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
WITH FOREIGN ENTITIES (THOUSANDS OF $)
-------------------------------- ------------------------------------------------------------------------------
TIME INTERVAL
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANKS CURRENT UNTIL UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR 1 YEAR YEARS YEARS YEARS YEARS
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
WITH WARRANTY
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
DEUTSCHE BANK 0 0 0 0 0 781,646
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
FINANCIAL INSTITUTIONS
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
IFC 32,100 32,100 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
IFC 7,643 7,643 15,286 15,286
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
IFC 34,393 34,393 68,786 68,786 68,786 171,964
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
IFC 45,857 45,857 91,714 91,714 91,714 229,286
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
DEG 3,242 0 4,995 2,240 1,680 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
CITIBANK NA (SYNDICATE) 0 0 80,250 80,250 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
DEUTSCHE BANK (SYNDICATE) 0 0 61,525 61,525 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
JP MORGAN CHASE BANK (SYNDICATE) 0 0 61,525 61,525 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK (SYNDICATE) 0 0 53,500 53,500 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
EXPORT DEVELOPMENT CANADA 0 0 35,685 35,685 0 0
(SYNDICATE)
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BBVA BANCOMER (SYNDICATE) 0 0 13,375 13,375 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
CREDIT LYONNAIS (SYNDICATE) 0 53,500 53,500 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
CREDIT SUISSE FIRST BOSTON 0 0 53,500 53,500 0
(SYNDICATE)
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
HSBC BANK (SINDICADO) 0 0 53,500 53,500 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BAYERISCHE HYPO-UND 0 0 53,500 53,500 0 0
VEREINSBANK (SYNDICATE)
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
CITIBANK NA (SYNDICATE) 0 0 0 180,563 180,563 120,375
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
DEUTSCHE BANK (SYNDICATE) 0 0 0 94,294 94,294 62,863
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
JP MORGAN CHASE BANK (SYNDICATE) 0 0 0 94,294 94,294 62,863
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCOMEXT 0 0 0 120,375 120,375 80,250
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
87-C
-------------------------------- ------------------------------------------------------------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
WITH FOREIGN ENTITIES (THOUSANDS OF $)
-------------------------------- ------------------------------------------------------------------------------
TIME INTERVAL
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANKS CURRENT UNTIL UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR 1 YEAR YEARS YEARS YEARS YEARS
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
WITH WARRANTY
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
DEUTSCHE BANK 0 0 0 0 0 781,646
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
FINANCIAL INSTITUTIONS
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK (SYNDICATE) 0 0 0 80,250 80,250 53,500
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
EXPORT DEVELOPMENT CANADA 0 0 0 53,487 53,487 35,658
(SYNDICATE)
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
TORONTO DOMINION (SYNDICATE) 0 0 0 80,250 80,250 53,500
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BBVA BANCOMER (SYNDICATE) 0 0 0 10,026 10,031 6,693
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BBVA BANCOMER (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO SANTANDER MEXICANO
(SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INVEX (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK MEXICO (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
IXE BANCO (SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO MERCANTIL DEL NORTE
(SYNDICATE) 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
IXE BANCO 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BBVA BANCOMER 214,000 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 267,500 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 28,890 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
California Commerce B. 0 0 96,300 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
California Commerce B. 40,660 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO INBURSA 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
Other Financial Leases 7,387 4,177 5,698 6,192 6,820 30,550
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO SANTANDER MEXICANO 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO SANTANDER MEXICANO 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO SANTANDER MEXICANO 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 160,500 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
88-C
-------------------------------- ------------------------------------------------------------------------------
CREDIT TYPE / INSTITUTION AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
WITH FOREIGN ENTITIES (THOUSANDS OF $)
-------------------------------- ------------------------------------------------------------------------------
TIME INTERVAL
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANKS CURRENT UNTIL UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR 1 YEAR YEARS YEARS YEARS YEARS
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
WITH WARRANTY
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
DEUTSCHE BANK 0 0 0 0 0 781,646
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
FINANCIAL INSTITUTIONS
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK 63,130 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 7,846 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK 5,350 5,350 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK 64,200 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 126,260 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK 132 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
COMERICA BANK 302 70 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BBVA BANCOMER 107,000 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 53,500 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 14,445 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BBVA BANCOMER 107,000 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 31,030 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANAMEX-CITIBANK 53,500 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
BANCO NAL. COMERCIO EXTERIOR 0 0 0 0 0 0
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
TOTAL BANKS 1,475,867 129,590 802,639 1,417,617 882,544 1,689,148
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
-------------------------------- ------------ ------------ ------------ ------------ ----------- --------------
** TABLE COMPLETE **
89-C
ANNEX 5
LOAN BREAKDOWN
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
STOCK EXCHANGE CODE:DESC QUARTER: 1 YEAR: 2003
--------------------------------------------------------------------------------
ANNEX 5
--------------------------------------------------------------------------------
CREDITS BREAKDOWN
--------------------------------------------------------------------------------
(THOUSANDS OF PESOS)
--------------------------------------------------------------------------------
---------------------------- ---------------- -------------- -------------------------
LISTED IN THE MEXICAN AMORTIZATION RATE OF DENOMINATED IN PESOS
STOCK EXCHANGE DATE INTEREST
---------------------------- ---------------- -------------- ------------ ------------
---------------------------- ---------------- -------------- ------------ ------------
UNTIL 1 MORE THAN
YEAR 1 YEAR
---------------------------- ---------------- -------------- ------------ ------------
---------------------------- ---------------- -------------- ------------ ------------
UNSECURED DEBT
---------------------------- ---------------- -------------- ------------ ------------
---------------------------- ---------------- -------------- ------------ ------------
UDIBONOS 10/21/2006 9.00 0 1,057,186
---------------------------- ---------------- -------------- ------------ ------------
UDIBONOS 7/13/2007 8.20 0 1,163,452
---------------------------- ---------------- -------------- ------------ ------------
0 2,220,638
---------------------------- ---------------- -------------- ------------ ------------
TOTAL STOCK EXCHANGE
---------------------------- ---------------- -------------- ------------ ------------
---------------------------- ---------------- -------------- ------------ ------------
SUPPLIERS 948,187 0
---------------------------- ---------------- -------------- ------------ ------------
OTHERS 0 0
---------------------------- ---------------- -------------- ------------ ------------
TOTAL SUPPLIERS 948,187 0
---------------------------- ---------------- -------------- ------------ ------------
OTHERS 1,305,369 0
---------------------------- ---------------- -------------- ------------ ------------
OTHER CURRENT LIABILITIES 2,257,855 3,545,254
AND OTHER CREDITS
---------------------------- ---------------- -------------- ------------ ------------
** TABLE CONTINUED **
90-A
---------------------------- -----------------------------------------------------------------------------
LISTED IN THE MEXICAN AMORTIZATION OF CREDITS IN FOREIGN CURRENCY WITH NATIONAL ENTITIES
STOCK EXCHANGE (THOUSANDS OF $)
---------------------------- -----------------------------------------------------------------------------
TIME INTERVAL
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5
YEAR YEAR YEARS YEARS YEARS YEARS
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
UNSECURED DEBT
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
UDIBONOS 0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
UDIBONOS 0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
TOTAL STOCK EXCHANGE
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
SUPPLIERS 0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
OTHERS 0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
TOTAL SUPPLIERS 0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
OTHERS 0 0 0 0 0 0
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
OTHER CURRENT LIABILITIES 1,096,055 0 535,000 0 0 0
AND OTHER CREDITS
---------------------------- ------------ ----------- ------------ ------------- ------------ ------------
** TABLE CONTINUED **
90-B
---------------------------- ------------------------------------------------------------------------------
LISTED IN THE MEXICAN AMORTIZATION OF CREDITS IN FOREIGN CURRENCY WITH FOREIGN ENTITIES (THOUSANDS
STOCK EXCHANGE OF $)
---------------------------- ------------------------------------------------------------------------------
TIME INTERVAL
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
CURRENT UNTIL 1 UNTIL 2 UNTIL 3 UNTIL 4 UNTIL 5 YEARS
YEAR YEAR YEARS YEARS YEARS
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
UNSECURED DEBT
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
UDIBONOS 0 0 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
UDIBONOS 0 0 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
0 0 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
TOTAL STOCK EXCHANGE
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
SUPPLIERS 0 1,019,982 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
OTHERS 0 0 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
TOTAL SUPPLIERS 0 1,019,982 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
OTHERS 0 214,986 0 0 0 0
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
OTHER CURRENT LIABILITIES 1,475,867 1,364,558 802,639 1,417,617 882,544 1,689,148
AND OTHER CREDITS
---------------------------- ------------ ------------ ------------ ------------ ----------- --------------
** TABLE COMPLETE **
90-C
ANNEX 6
TRADE BALANCE AND MONETARY POSITION IN FOREIGN EXCHANGE
(THOUSANDS OF PESOS)
DOLLARS (1) OTHER CURRENCIES TOTAL
THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF
TRADE BALANCE DOLLARS PESOS DOLLARS PESOS PESOS
1. INCOME
EXPORTS 215,682 2,332,126 0 0 2,332,126
OTHER 1,285 13,760 0 0 13,760
TOTAL 216,967 2,345,886 0 0 2,345,886
2. EXPENDITURE
IMPORT (RAW MATERIALS) 107,643 1,127,078 0 0 1,127,078
INVESTMENTS 3,079 31,789 0 0 31,789
OTHER 19,956 208,615 0 0 208,615
TOTAL 130,678 1,367,482 0 0 1,367,482
NET BALANCE 86,289 978,404 978,404
FOREIGN MONETARY POSITION
TOTAL ASSETS 240,129 2,569,380 0 0 2,569,380
LIABILITIES POSITION 865,742 9,263,439 0 0 9,263,439
SHORT TERM LIABILITIES POSITION 367,896 3,936,487 0 0 3,936,487
LONG TERM LIABILITIES POSITION 497,846 5,326,952 0 0 5,326,952
NET BALANCE -625,613 -6,694,059 0 0 -6,694,059
91
ANNEX 7
INTEGRATION AND INCOME CALCULATION BY MONETARY POSITION
(THOUSANDS OF PESOS)
(ASSET)
MONETARY LIABILITIES MONTHLY (PROFIT)
MONTH MONETARY ASSETS LIABILITIES MONETARY POSITION MONTHLY INFLATION AND LOSS
JANUARY 7,547,767 17,932,309 -10,384,542 0.4 41,538
FEBRUARY 7,353,633 18,695,312 -11,341,679 0.28 31,757
MARCH 6,550,172 17,713,494 -11,163,322 0.63 70,329
APRIL
ACTUALIZATION 0 0 0 0 0
CAPITALIZATION 0 0 0 0 -68,606
FOREIGN CORP. 0 0 0 0 0
OTHER 0 0 0 0 0
0 0 0 0 0
TOTAL 75,018
92
STOCK EXCHANGE CODE: DESC
QUARTER: 1
BONDS AND MEDIUM TERM NOTES LISTING IN STOCK MARKET (1)
ANNEX 8
FINANCIAL LIMITATIONS BASED ON ISSUES OR INSTRUMENTS
-1 Interest Coverage.
The result obtained from dividing the sum of (i) the consolidated operating
profit plus depreciation and amortization during the immediately prior 4 full
fiscal quarters by (ii) consolidated financial expense during such period, shall
not be less than 2.75 times.
-2 Capitalization.
The result obtained from dividing, (i) total debt with cost minus cash plus
fifty million dollars, by (ii) net assets plus total debt with cost minus cash
plus fifty million dollars, shall not be greater than 0.50 times.
-3 Leverage Ratio.
The result obtained from dividing (i) total debt with cost minus cash plus fifty
million dollars, by (ii) the sum of the consolidated operating profit plus
depreciation and amortization during the immediately prior 4 full fiscal
quarters, shall not exceed 4.50 times.
CURRENT STATUS OF FINANCIAL LIMITATIONS
(1) Interest Coverage. 3.00
(2) Capitalization. 0.49
(3) Leverage Ratio. 4.96
93
MEXICAN STOCK EXCHANGE
SIFIC/ICS
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 CONSOLIDATED
----------------------------------------------- -------------------------------------------- ----------- -----------------
PLANT ECONOMIC PLANT
OR CAPACITY UTILIZATION
CENTER ACTIVITY (1) %
----------------------------------------------- -------------------------------------------- ----------- -----------------
EJES TRACTIVOS, S.A. DE C.V. REAR AXLES 320 40%
PISTONES MORESA, S.A. DE C.V. PISTONS (PIECES) 11,800 42%
MORESTANA, S.A. DE C.V. TAPPETS (PIECES) 12,900 84%
PISTONES MORESA, S.A. DE C.V. PISTON PINS (PIECES) 23,500 47%
ENGRANES CONICOS, S.A. DE C.V. GEARS (SETS) 820 70%
PRODUCTOS ESTAMPADOS DE MEXICO, S.A. DE C.V. PICK-UP BOXES (PIECES) 330 30%
VELCON, S.A. DE C.V. CONSTANT VELOCITY JOINTS (PIECES) 1,920 80%
TRANSMISIONES TSP, S.A DE C.V. TRANSMISSIONS (TRANS.) 71 24%
TREMEC, S.A. DE C.V. TRANSMISSIONS (TRANS.) 400 70%
CARDANES, S.A. DE C.V. PROPELLER SHAFTS (PIECES) 742 50%
HAYES WHEELS CHIHUAHUA, S.A. DE C.V. ALUMINUM WHEELS (PIECES) 650 50%
HAYES WHEELS ACERO, S.A. DE C.V. STEEL WHEELS (PIECES) 6,100 40%
AUTOMETALES, S.A. DE .CV. IRON FOUNDRY (TONS.) 20 77%
TF VICTOR, S.A. DE C.V. GASKETS, SEALS, MOTOR PARTS (PIECES) 20,000 55%
FORJAS SPICER, S.A. DE C.V. PRECISION FORGES (TONS.) 55 28%
VEHYCO PISTONS (PIECES) 1,200 70%
COATZACOALCOS, VER. POLYSTYRENE (TONS) 75,000 89%
XICOHTZINGO,TLAX. POLYSTYRENE (TONS) 65,000 86%
ALTAMIRA, TAMPS. (Dynasol) SYNTHETIC RUBBER (TONS) 85,500 90%
ALTAMIRA, TAMPS. (INSA) SYNTHETIC RUBBER (TONS) 96,000 87%
----------------------------------------------- -------------------------------------------- ----------- -----------------
94
MEXICAN STOCK EXCHANGE
SIFIC/ICS
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9 CONSOLIDATED
----------------------------------------------- -------------------------------------------- ----------- -----------------
PLANT ECONOMIC PLANT
OR CAPACITY UTILIZATION
CENTER ACTIVITY (1) %
----------------------------------------------- -------------------------------------------- ----------- -----------------
ALTAMIRA, TAMPS. (PARATEC) SYNTHETIC RUBBER (TONS) 40,000 79%
COATZACOALCOS, VER. PHOSPHATE (TONS) 100,000 112%
----------------------------------------------- -------------------------------------------- ----------- -----------------
TULTITLAN, EDO. MEX. PHOSPHATE (TONS) 86,000 75%
LECHERIA, EDO. MEX. PHOSPHATE (TONS) 40,000 12%
ALTAMIRA, TAMPS. CARBON BLACK (TONS) 120,000 83%
COSOLEACAQUE, VER. METHYL METHACRYLATE (TONS) 20,000 100%
OCOYOACAC, EDO. MEX. ACRYLC SHEET (TONS) 7,855 108%
SAN LUIS POTOSI. S.L.P. ACRYLC SHEET (TONS) 4,806 92%
SALAMANCA, GTO. WATERPROOFING SEALANTS AND ADHESIVES (TONS) 104,936 39%
LERMA, EDO. MEX. ADHESIVES (TONS) 4,204 31%
LERMA, EDO. MEX. MELAMINE LAMINATES (MLLS MM2) 5 75%
ZITACUARO, MICH. PARTICLE BOARD (THOUSAND M3) 164 103%
LECHERIA, EDO. MEX. ORTHOPHOSPHATE (TONS) 119,000 36%
----------------------------------------------- -------------------------------------------- ----------- -----------------
95
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: DESC QUARTER: YEAR: 2003
PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
ANNEX 9
------------------------ --------------------------------------------------------------------- ----------------- ---------------
PLANT ECONOMIC PLANT
OR CAPACITY UTILIZATION
CENTER ACTIVITY (1) %
------------------------ --------------------------------------------------------------------- ----------------- ---------------
MERIDA MILL (ton/month) 27,600 100%
IRAPUATO MILL (ton/month) 20,000 38%
PENINSULA HOG (thousands) 35 100%
MERIDA SLAUGHTER HOUSE 222 100%
CANCUN SLAUGHTER HOUSE 27 80%
PENJAMO SLAUGHTER HOUSE 111 80%
IRAPUATO SLAUGHTER HOUSE 240 0%
MOCHIS (SANTA ROSA) FRESH TOMATO PROCESSING (THOUSAND OF POUNDS IN 100 DAYS) 6,614 4%
TOMATO PRODUCTS IN TETRABRIK CONTAINER (MILLION OF CASES) 6 85%
TOMATO PASTE (THOUSAND OF POUNDS IN 100 DAYS) 98,104 0%
DEHYDRATED PRODUCTS ( THOUSAND OF POUNDS/YEAR IN 100 DAYS OF SEASON?) 847 0%
MOCHIS (LA CORONA) CANNED VEGETABLES (THOUSAND OF PONDS) 159,981 45%
CANNED VEGETABLES (MILLIONS OF CASES) 7 45%
MAZATLAN TUNA (thousands boxes) 2,500 77%
ROSEMEAD, CALIFORNIA SALSA & CANNED VEGETABLES (thousands lb) 166,226 37%
------------------------ --------------------------------------------------------------------- ----------------- ---------------
96
MEXICAN STOCK EXCHANGE
SIFIC / ICS
MAIN RAW MATERIALS
ANNEX 10 CONSOLIDATED
-------------------------------------------- --------------------- --------------------------------------- -------- ---------------
MAIN MAIN DOM. COST
SUPPLIERS FOREIGN SUPPLIERS SUBST. PRODUCTION
%
-------------------------------------------- --------------------- --------------------------------------- -------- ---------------
HYLSA, S. A. DE C.V. STEEL MC STEEL NO
INDUSTRIAS CH, S. A. STEEL MITSUBISHI YES
NACOBRE LAMINATE NISHO OWAI NO
P.P.G. INDUSTRIAS DE MEXICO , S. A. DE C.V. STEEL TOTH INDUSTRIES NO
AHMSA AUTOMOTIVE PARTS DANA CO. NO
DUPONT DE MEXICO FORGE GSB FORJA NO
KOYO DE MEXICO LAMINATE DAEWOO CORP. NO
TIMKEM ALUMINUM REYNOLDS METAL YES
GENERAL MOTORS RODAMIENTOS THE TIMKEN CO. NO
FORGE THYSSEN PRECISION FORGE NO
PEMEX STYRENE STERLING, MITSUI
BUTADIEN SHELL, POLIMERI EUROPA , BP CHEMICAL,
EQUISTAR, SABIC, REPSOL QUIMICA
PEMEX METHANOL CELANESE, PETROCEL
PEMEX
PEMEX
RHODIA MEXICANA
RHODIA MEXICANA
ACETOCYANOHIDRINE BP CHEMICAL
OWN PRODUCTION & FRESH MARKET ( VARIOUS )
OWN PRODUCTION & FRESH MARKET ( VARIOUS )
OWN PRODUCTION & FRESH MARKET ( VARIOUS )
-------------------------------------------- --------------------- --------------------------------------- -------- ---------------
TETRAPAK
GRUPO ZAPATA
ZAPATA ENVASES
ARANCIA CORN PRODUCTS
CELULOSA Y CORRUGADOS
EMPAQUE DE CARTON TITAN
TOMATO PASTE MORNING STAR OK
REYNOLD'S ITEMS REYNOLDS
ENVASES DE SINALOA
PEMEX
VEGETABLES RIO FARMS
VEGETABLES WOOLF ENTERPRISES
PACKAGING MATERIAL
- GLASS OWENS BROCKWAY
PACKAGING MATERIAL
- CANS PECHINEY PLASTIC
PIC
GRAIN CARGILL OK
-------------------------------------------- --------------------- --------------------------------------- -------- ---------------
97
ANNEX 11
SALES DISTRIBUTION BY PRODUCT
DOMESTIC SALES
-------------------------------- ---------------------------------------------- ------------------------------------------------
MAIN PRODUCTS TOTAL PRODUCTION SALES
-------------------------------- ---------------------------------------------- ------------------------------------------------
VOLUME AMOUNT VOLUME AMOUNT
-------------------------------- ----------------------- ---------------------- ------------------------ -----------------------
AUTOPARTS SECTOR 679,911
CHEMICAL SECTOR 1,238,917
FOOD SECTOR 624,882
REAL ESTATE SECTOR 233,196
COMPANIES OF OTHER SERVICES 3,789
-------------------------------- ----------------------- ---------------------- ------------------------ -----------------------
TOTAL 2,780,695
-------------------------------- ----------------------- ---------------------- ------------------------ -----------------------
SALES DISTRIBUTION BY PRODUCT
FOREIGN SALES
-------------------------------- ---------------------------------------------- ------------------------------------------------
MAIN PRODUCTS TOTAL PRODUCTION SALES
-------------------------------- ---------------------------------------------- ------------------------------------------------
VOLUME AMOUNT VOLUME AMOUNT
-------------------------------- ----------------------- ---------------------- ------------------------ -----------------------
AUTOPARTS SECTOR 1,266,670
CHEMICAL SECTOR 797,421
FOOD SECTOR 281,677
-------------------------------- ----------------------- ---------------------- ------------------------ -----------------------
TOTAL
-------------------------------- ----------------------- ---------------------- ------------------------ -----------------------
** TABLE CONTINUED **
SALES DISTRIBUTION BY PRODUCT
DOMESTIC SALES
-------------------------------- --------------------------------------------------- ----------------------------------
MAIN PRODUCTS MARKET SHARES (%) MAIN
-------------------------------- --------------------------------------------------- ----------------------------------
TRADEMARKS CUSTOMERS
-------------------------------- --------------------------------------------------- ----------------- ----------------
AUTOPARTS SECTOR
CHEMICAL SECTOR
FOOD SECTOR
REAL ESTATE SECTOR
COMPANIES OF OTHER SERVICES
-------------------------------- --------------- -------------- -------------------- ----------------- ----------------
TOTAL
-------------------------------- --------------- -------------- -------------------- ----------------- ----------------
SALES D
-------------------------------- --------------------------------------------------- ----------------------------------
MAIN PRODUCTS MARKET SHARES (%) MAIN
-------------------------------- --------------------------------------------------- ----------------------------------
TRADEMARKS CUSTOMERS
-------------------------------- --------------------------------------------------- ----------------- ----------------
AUTOPARTS SECTOR
CHEMICAL SECTOR
FOOD SECTOR
-------------------------------- --------------------------------------------------- ----------------- ----------------
TOTAL 2,345,768
-------------------------------- --------------------------------------------------- ----------------- ----------------
** TABLE COMPLETE **
98
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
ANNEX 12
SCHEDULE FOR THE DETERMINATION OF THE NET FISCAL EARNINGS ACCOUNT (NFEA)
(Thousands of Pesos)
NFEA BALANCE FOR PREVIOUS PERIOD FOR WHICH IS DETERMINED
----------------------
NFE BALANCE TO DECEMBER 31st Of: 2002 3,802,604
----------------------
----------------------
Number of shares Outstanding at the Date of the NFEA: 1,369,079,376
----------------------
(Units)
----------------
Are figures fiscally audited?
----------------
DIVIDENDS PAIDOUT IN THE PERIOD THAT COMES FROM THE NFEA
-------------------------------------------------------------------------------------------------------
Quarter Series Number of shares Date of Settlement Amount
Outstanding
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
1 A 587,479,900 31-01-03 42,592
---------------- ------------ ----------------------- -------------------------- ----------------------
1 B 506,257,866 31-01-03 36,704
---------------- ------------ ----------------------- -------------------------- ----------------------
1 C 275,341,610 31-01-03 19,962
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
---------------- ------------ ----------------------- -------------------------- ----------------------
-------------------------------------------------------------------------------------------------------
DETERMINATION OF THE NFEA OF THE PRESENT YEAR NFE
FROM THE PERIOD JANUARY 1 TO 31 OF DECEMBER OF 2001
--------------------------
FISCAL EARNINGS 0
--------------------------
--------------------------
- DETERMINED INCOME 0
--------------------------
--------------------------
+ DEDUCTED WORKER'S PROP. 0
--------------------------
--------------------------
- DETERMINED WORKER 0
--------------------------
--------------------------
- DETERMINED RFE 0
--------------------------
--------------------------
- NON DEDUCTIBLES 0
--------------------------
--------------------------
NFE OF PERIOD: 0
----------------------------- ------------------- --------------------------
--------------------------------------------------------------------------------
BALANCE OF THE NFEA AT THE END OF THE PERIOD
-------------------
NFE BALANCE TO DECEMBER 31st Of: 2002 3,752,467
-------------------
-------------------
Number of shares Outstanding at the Date of the NFEA: 1,369,079,376
-------------------
---------------- ------------ ----------------------- --------------------------
--------------------------------------------------------------------------------
MODIFICATION BY COMPLEMENTARY
-------------------
NFE BALANCE TO DECEMBER 31st Of: 2002 0
-------------------
-------------------
Number of shares Outstanding at the Date of the NFEA: 0
-------------------
Units
---------------- ------------ ----------------------- --------------------------
99
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
ANNEX 12-A
SCHEDULE FOR THE DETERMINATION OF
THE NET FISCAL EARNINGS ACCOUNT REINVERTED (NFEAR)
(Thousands of Pesos)
NFEAR BALANCE FOR PREVIOUS PERIOD FOR WHICH IS DETERMINED
----------
NFEAR BALANCE TO DECEMBER 31st Of: 2002 0
----------
----------
Number of shares Outstanding at the Date of the NFEAR: 0
----------
(Units)
--------------- -----------
Are figures Are the figures
fiscally audited? fiscally consolidated?
--------------- -----------
DIVIDENDS PAIDOUT IN THE PERIOD THAT COMES FROM THE NFEAR
--------------------------------------------------------------------------------------------------------------------
Quarter Series Number of shares Date of Settlement Amount
Outstanding
----------------------- -------------------- -------------------- ---------------------------- ---------------------
0 0 0 0
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
----------------------- -------------------- -------------------- ---------------------------- ---------------------
--------------------------------------------------------------------------------------------------------------------
DETERMINATION OF THE NFEAR OF THE PRESENT YEAR
NFER FROM THE PERIOD JANUARY 1 TO 31 OF DECEMBER OF 2001
Fiscal Earnings
--------------
+ Deducted Worker's profit share 0
--------------
--------------
- Determined income tax 0
--------------
--------------
- Non-Deductibles 0
--------------
- (+) Earnings (loss) from foreign of profit:
--------------
Determined RFE of the fiscal year 0
--------------
--------------
- Income Tax (Deferred ISR) 0
--------------
--------------
* Factor to Determine the NFEAR: 0
--------------
--------------
NFER From the period 0
--------------
100
--------------------------------------------------------------------------------
BALANCE OF THE NFEAR AT THE END OF THE PERIOD
------------------
NFEAR BALANCE TO 31 OF DECEMBER OF 2002 0
------------------
------------------
Number of Shares Outstanding at the Date of the NFEAR: 0
------------------
Units
--------------------------------------------------------------------------------
MODIFICATION BY COMPLEMENTARY
------------------
NFEAR BALANCE TO 31 OF DECEMBER OF 2002 0
------------------
------------------
Number of Shares Outstanding at the Date of the NFEAR: 0
------------------
Units
----------------------- -------------------- ---------------- ------------------
101
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
CHARACTERISTICS OF THE SHARES
102
--------------------------------------------------------------------------------------------------------------------------------
INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK
--------------------------------------------------------------------------------------------------------------------------------
CHARACTERISTICS OF THE SHARES
--------------------------------------------------------------------------------------------------------------------------------
-------------------- --------- -------- -------------------------------------------------------------------- -------------------
SERIES NOMINAL VALID NUMBER OF SHARES CAPITAL STOCK
VALUE COUPON (THOUSANDS OF PESOS)
-------------------- --------- -------- ----------------------------------------------------------------------------------------
VARIABLE
FIXED PORTION PORTION MEXICAN SUBSCRIPTION FIXED VARIABLE
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
A 0.01300 19 587,479,900
5,874,799,000 7,637
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
B 0.01300 19 506,257,866 506,257,866
6,581
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
C 0.01300 19 275,341,610 275,341,610
3,580
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
Total 781,599,476 1,093,737,766 275,341,610 10,161
5,874,799,000 7,637
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
------------------------------------------------------------------------------------------------------------ ------- -----------
TOTAL NUMBER OS SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE SHARES:
------------------------------------------------------------------------------------------------------------ ------- -----------
1,369,079,376
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
------------------------------ -------- -------------------------- ----------- --------------- ------------- ------- -----------
SHARES PROPORTION BY:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
CPO'S:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
UNITS:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
ADRS's:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
GDRS's:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
ADS's:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
GDS's:
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
Repurchased own shares
-------------------- --------- -------- -------------------------------------- --------------- ------------- ------- -----------
Market value of the share
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
Series Number of At repurchase At Quarter
Shares
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
-------------------- --------- -------- -------------------------- ----------- --------------- ------------- ------- -----------
103
MEXICAN STOCK EXCHANGE
SIFIC / ICS
STOCK EXCHANGE CODE: DESC QUARTER: 1 YEAR: 2003
DESC, S.A. DE C.V.
CONSOLIDATED
Final Printing
DECLARATION FROM THE COMPANY OFFICIALS RESPONSIBLE:
I HEREBY SWEAR THAT THE FINANCIAL INFORMATION HEREIN SUPPLIED TO THIS STOCK
EXCHANGE, CORRESPONDING TO THE PERIOD FROM 1 OF JANUARY TO THE 31st OF MARCH OF
2003 AND 2002 IS THAT OBTAINED FROM OUR AUTHORIZED ACCOUNTING REGISTERS AND IS
THE RESULT OF THE APPLICATION OF THE ACCOUNTING PRINCIPLES AND NORMS ACCEPTED
AND STATED BY THE MEXICAN INSTITUTE OF PUBLIC ACCOUNTANTS AND IN THE PROVISIONS
OF THE MEXICAN NATIONAL BANK AND STOCK COMMISSION (COMISION NACIONAL BANCARIA Y
DE VALORES).
THE ACCOUNTING PRINCIPLES AND NORMS USED BY THIS COMPANY AND THE PROCESSING OF
DATA FOR THE PERIOD TO WHICH THE SAID INFORMATION REFERS WERE APPLIED USING THE
SAME BASES FOR THE PREVIOUS YEAR.
------------------------------ ------------------------------------
LIC. ARTURO D'ACOSTA RUIZ LIC. SALVADOR S. ICAZBALCETA OCAMPO
CHIEF FINANCIAL OFFICER DIRECTOR OF CONTROL
MEXICO, D.F., AT APRIL 29, 2003
104
General Data of the Issuer:
---------------------------
Corporate Name: Desc, S.A. de C.V.
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: desc@mail.desc.com.mx
Internet Address www.desc.com.mx
Fiscal Data of the Issuer:
--------------------------
RFC of Company: DES9405182F1
Domicile: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Responsibility for Payments:
----------------------------
Name: Lic. Alejandro de la Barreda Gomez
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
Data with respect to officers:
Mexican Stock
Exchange equivalent: Chairman of the Board of Directors
Title at company: Chairman and Chief Executive Officer
Name: Mr. Fernando Senderos Mestre
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
Mexican Stock
Exchange equivalent: Chief Financial Officer
Title at company: Director of Finance
Name: Lic. Arturo D'Acosta Ruiz
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: adacosta@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer in Charge of Sending Quarterly Financial Information
Title at company: Corporate Manager of Financial Information
Name: Lic. Alejandro De La Barreda Gomez
105
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: abarredag@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Alternate Officer in Charge of Sending Quarterly Financial Information
Title at company: Corporate Comptroller
Name: Lic. Salvador Icazbalceta Ocampo
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-96
E-Mail: sicazbalceta@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer Responsible for Legal Affairs
Title at company: General Counsel
Name: Lic. Ramon Estrada Rivera
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-97
E-Mail: restrada@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Secretary of the Board of Directors
Title at company: Secretary of the Board of Directors
Name: C.P. Ernesto Vega Velasco
Address: Bosque de Ciruelos No. 130 Room 1203
City: Bosques de las Lomas
Zip Code: 11700
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-60
E-Mail: evega@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer in Charge of Providing Information to Investors
Title at company: Corporate Manager of Financial Information
Name: Lic. Alejandro De La Barreda Gomez
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-97
E-Mail: abarredag@mail.desc.com.mx
106
Mexican Stock
Exchange equivalent: Officer Authorized to Send Information via Emisnet
Title at company: Chief Financial Officer
Name: Lic. Arturo D'Acosta Ruiz
Address: Paseo de los Tamarindos 400-B
City: Bosques de las Lomas
Zip Code: 5120
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-98
E-Mail: adascosta@mail.desc.com.mx
Mexican Stock
Exchange equivalent: Officer Authorized to Send Relevant Events via Emisnet
Title at company: Secretary of the Board of Directors
Name: C.P. Ernesto Vega Velasco
Address: Bosque de Ciruelos No. 130 Room 1203
City: Bosques de las Lomas
Zip Code: 11700
State: Mexico, D.F.
Telephone: 52-61-80-00
Fax: 52-61-80-60
E-Mail: evega@mail.desc.com.mx
107