-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MHUZpwkqI/lnQWi6x9LaWOie3a8roSgR6zjc4v64oUrB6k+NMy8aA8fTDXvkw6Rm OnjDX3DR8Ql1wxUsSCiUog== 0000891092-08-002423.txt : 20080505 0000891092-08-002423.hdr.sgml : 20080505 20080505145906 ACCESSION NUMBER: 0000891092-08-002423 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20080505 FILED AS OF DATE: 20080505 DATE AS OF CHANGE: 20080505 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GROUP SIMEC SA DE CV CENTRAL INDEX KEY: 0000887153 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11176 FILM NUMBER: 08802156 BUSINESS ADDRESS: STREET 1: CALZADA LAZARO CARDENAS 601 CITY: 44910 GUADALAJARA JA STATE: O5 ZIP: 10022 MAIL ADDRESS: STREET 1: CALZADA LAZARO CARDENAS CITY: GUADALAJARA JALISCO STATE: O5 ZIP: 999999999 6-K 1 e31488_6k.txt FORM 6-K 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 COMMISSION FILE NUMBER 1-11176 For the month of May , 2008. - -------------------------------------------------------------------------------- Group Simec, Inc. - -------------------------------------------------------------------------------- (Translation of Registrant's Name Into English) Av. Lazaro Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco, Mexico 44440 - -------------------------------------------------------------------------------- (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 whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1) Yes |_| No |X| Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7) Yes |_| No |X| Indicate by check mark whether the registrant by furnishing the information contained in this form 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-_______________________.) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GRUPO SIMEC, S.A.B. de C.V. ---------------------------------- (Registrant) Date: May 5, 2008. By: /s/ Luis Garcia Limon ------------------------------ Name: Luis Garcia Limon Title: Chief Executive Officer MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED FINANCIAL STATEMENT AT DECEMBER 31 OF 2007 AND 2006 (thousands of Mexican pesos)
AUDITED - ---------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR S - ---------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - ---------------------------------------------------------------------------------------------------------------- s01 TOTAL ASSETS 22,841,257 100 18,042,780 100 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s02 CURRENT ASSETS 14,453,755 63 9,871,045 55 - ---------------------------------------------------------------------------------------------------------------- s03 CASH AND SHORT-TERM INVESTMENTS 6,396,155 28 2,204,018 12 - ---------------------------------------------------------------------------------------------------------------- s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 2,481,189 11 2,243,394 12 - ---------------------------------------------------------------------------------------------------------------- s05 OTHER ACCOUNTS AND NOTES RECEIVABLE 574,002 3 262,838 1 - ---------------------------------------------------------------------------------------------------------------- s06 INVENTORIES 4,930,404 22 5,052,434 28 - ---------------------------------------------------------------------------------------------------------------- s07 OTHER CURRENT ASSETS 72,005 0 108,361 1 - ---------------------------------------------------------------------------------------------------------------- s08 LONG-TERM 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s09 ACCOUNTS AND NOTES RECEIVABLE (NET) 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s10 INVESTMENT IN SHARES OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s11 OTHER INVESTMENTS 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s12 PROPERTY, PLANT AND EQUIPMENT (NET) 7,900,638 35 7,599,837 42 - ---------------------------------------------------------------------------------------------------------------- s13 LAND AND BULIDINGS 2,619,597 11 2,578,198 14 - ---------------------------------------------------------------------------------------------------------------- s14 MACHINERY AND INDUSTRIAL EQUIPMENT 8,992,073 39 8,077,100 45 - ---------------------------------------------------------------------------------------------------------------- s15 OTHER EQUIPMENT 109,237 0 116,053 1 - ---------------------------------------------------------------------------------------------------------------- s16 ACCUMULATED DEPRECIATION 4,016,312 18 3,299,068 18 - ---------------------------------------------------------------------------------------------------------------- s17 CONSTRUCTION IN PROGRESS 196,043 1 127,554 1 - ---------------------------------------------------------------------------------------------------------------- s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 384,346 2 476,810 3 - ---------------------------------------------------------------------------------------------------------------- s19 OTHER ASSETS 102,518 0 95,088 1 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s20 TOTAL LIABILITIES 5,589,223 100 5,082,447 100 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s21 CURRENT LIABILITIES 2,860,124 51 2,907,498 57 - ---------------------------------------------------------------------------------------------------------------- s22 SUPPLIERS 2,104,235 38 1,848,857 36 - ---------------------------------------------------------------------------------------------------------------- s23 BANK LOANS 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s24 STOCK MARKET LOANS 3,282 0 3,406 0 - ---------------------------------------------------------------------------------------------------------------- s103 OTHER LOANS WITH COST 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s25 TAXES PAYABLE 72,551 1 197,922 4 - ---------------------------------------------------------------------------------------------------------------- s26 OTHER CURRENT LIABILITIES WITHOUT COST 680,056 12 857,313 17 - ---------------------------------------------------------------------------------------------------------------- s27 LONG-TERM LIABILITIES 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s28 BANK LOANS 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s29 STOCK MARKET LOANS 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s30 OTHER LOANS WITH COST 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s31 DEFERRED LIABILITIES 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s32 OTHER NON-CURRENT LIABILITIES WITHOUT COST 2,729,099 49 2,174,949 43 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s33 CONSOLIDATED STOCKHOLDERS' EQUITY 17,252,034 100 12,960,333 100 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s34 MINORITY INTEREST 2,390,179 14 2,252,461 17 - ---------------------------------------------------------------------------------------------------------------- s35 MAJORITY INTEREST 14,861,855 86 10,707,872 83 - ---------------------------------------------------------------------------------------------------------------- s36 CONTRIBUTED CAPITAL 7,181,744 42 4,761,018 37 - ---------------------------------------------------------------------------------------------------------------- S79 CAPITAL STOCK 4,030,427 23 3,763,412 29 - ---------------------------------------------------------------------------------------------------------------- s39 PREMIUM ON ISSUANCE OF SHARES 3,151,317 18 997,606 8 - ---------------------------------------------------------------------------------------------------------------- s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s41 EARNED CAPITAL 7,680,111 45 5,946,854 46 - ---------------------------------------------------------------------------------------------------------------- s42 RETAINED EARNINGS AND CAPITAL RESERVES 8,550,179 50 7,021,122 54 - ---------------------------------------------------------------------------------------------------------------- s44 OTHER ACCUMULATED COMPREHENSIVE RESULT (870,068) (5) (1,074,268) (8) - ---------------------------------------------------------------------------------------------------------------- s80 SHARES REPURCHASED 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED FINANCIAL STATEMENT BREAKDOWN OF MAIN CONCEPTS (thousands of Mexican pesos)
AUDITED - ---------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR S - ---------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - ---------------------------------------------------------------------------------------------------------------- s03 CASH AND SHORT-TERM INVESTMENTS 6,396,155 100 2,204,018 100 - --------------------------------------------------------------------------------------------------------------- s46 CASH 301,766 5 395,213 18 - --------------------------------------------------------------------------------------------------------------- s47 SHORT-TERM INVESTMENTS 6,094,389 95 1,808,805 82 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s07 OTHER CURRENT ASSETS 72,005 100 108,361 100 - --------------------------------------------------------------------------------------------------------------- s81 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s82 DISCONTINUED OPERATIONS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s83 OTHER 72,005 100 108,361 100 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 384,346 100 476,810 100 - --------------------------------------------------------------------------------------------------------------- s48 DEFERRED EXPENSES 332,737 87 427,916 90 - --------------------------------------------------------------------------------------------------------------- s49 GOODWILL 36,258 9 0 0 - --------------------------------------------------------------------------------------------------------------- s51 OTHER 15,351 4 48,894 10 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s19 OTHER ASSETS 102,518 100 95,088 100 - --------------------------------------------------------------------------------------------------------------- s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS 5,059 5 5,921 6 - --------------------------------------------------------------------------------------------------------------- s85 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s50 DEFERRED TAXES 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s86 DISCONTINUED OPERATIONS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s87 OTHER 97,459 95 89,167 94 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s21 CURRENT LIABILITIES 2,860,124 100 2,907,498 100 - --------------------------------------------------------------------------------------------------------------- s52 FOREIGN CURRENCY LIABILITIES 2,348,357 82 2,223,849 76 - --------------------------------------------------------------------------------------------------------------- s53 MEXICAN PESOS LIABILITIES 511,767 18 683,649 24 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s26 OTHER CURRENT LIABILITIES WITHOUT COST 680,056 100 857,313 100 - --------------------------------------------------------------------------------------------------------------- s88 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 6,329 1 - --------------------------------------------------------------------------------------------------------------- s89 INTEREST LIABILITIES 3,952 1 6,849 1 - --------------------------------------------------------------------------------------------------------------- s68 PROVISIONS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s90 DISCONTINUED OPERATIONS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s58 OTHER CURRENT LIABILITIES 676,104 99 844,135 98 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s27 LONG-TERM LIABILITIES 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s59 FOREIGN CURRENCY LIABILITIES 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s60 MEXICAN PESOS LIABILITIES 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s31 DEFERRED LIABILITIES 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s65 NEGATIVE GOODWILL 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s67 OTHER 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s32 OTHER NON CURRENT LIABILITIES WITHOUT COST 2,729,099 100 2,174,949 100 - --------------------------------------------------------------------------------------------------------------- s66 DEFERRED TAXES 2,672,480 98 2,081,717 96 - --------------------------------------------------------------------------------------------------------------- s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 18,422 1 23,107 1 - --------------------------------------------------------------------------------------------------------------- s92 DISCONTINUED OPERATIONS 0 0 0 0 - --------------------------------------------------------------------------------------------------------------- s69 OTHER LIABILITIES 38,197 1 70,125 3 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- s79 CAPITAL STOCK 4,030,427 100 3,763,412 100 - --------------------------------------------------------------------------------------------------------------- s37 CAPITAL STOCK (NOMINAL) 2,307,961 57 2,048,257 54 - --------------------------------------------------------------------------------------------------------------- s69 RESTATEMENT OF CAPITAL STOCK 1,722,466 43 1,715,155 46 - ---------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED FINANCIAL STATEMENT BREAKDOWN OF MAIN CONCEPTS (thousands of Mexican pesos)
AUDITED - ---------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR S - ---------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s42 RETAINED EARNINGS AND CAPITAL RESERVES 8,550,179 100 7,021,122 100 - ---------------------------------------------------------------------------------------------------------------- s93 LEGAL RESERVE 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s43 RESERVE FOR REPURCHASE OF SHARES 200,612 2 200,612 3 - ---------------------------------------------------------------------------------------------------------------- s94 OTHER RESERVES 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s95 RETAINED EARNINGS 6,820,510 80 4,641,816 66 - ---------------------------------------------------------------------------------------------------------------- s45 NET INCOME FOR THE YEAR 1,529,057 18 2,178,694 31 - ---------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------- s44 OTHER ACCUMULATED COMPREHENSIVE RESULT (870,068) 00) (1,074,268) (100) - ---------------------------------------------------------------------------------------------------------------- s70 ACCUMULATED MONETARY RESULT 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s71 RESULT FROM HOLDING NON-MONETARY ASSETS 132,155 15 (73,659) (7) - ---------------------------------------------------------------------------------------------------------------- s96 CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION (31,710) (4) (25,539) (2) - ---------------------------------------------------------------------------------------------------------------- s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS 0 0 (4,557) 0 - ---------------------------------------------------------------------------------------------------------------- s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES (970,513) (112) (970,513) 90 - ---------------------------------------------------------------------------------------------------------------- s99 LABOR OBLIGATION ADJUSTMENT 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------- s100 OTHER 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. BALANCE SHEETS OTHER CONCEPTS (thousands of Mexican pesos)
AUDITED - ------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR S - ------------------------------------------------------------------------------------------- AMOUNT AMOUNT - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- S72 WORKING CAPITAL 11,593,631 6,963,547 - ------------------------------------------------------------------------------------------- S73 PENSIONS FUND AND SENIORITY PREMIUMS 0 0 - ------------------------------------------------------------------------------------------- S74 EXECUTIVES (*) 51 54 - ------------------------------------------------------------------------------------------- S75 EMPLOYERS (*) 1,190 1,137 - ------------------------------------------------------------------------------------------- S76 WORKERS (*) 3,196 2,862 - ------------------------------------------------------------------------------------------- S77 COMMON SHARES (*) 474,621,611 421,214,706 - ------------------------------------------------------------------------------------------- S78 REPURCHASED SHARES (*) 0 0 - ------------------------------------------------------------------------------------------- S101 RESTRICTED CASH 0 0 - ------------------------------------------------------------------------------------------- S102 NET DEBT OF NON CONSOLIDATED COMPANIES 0 238,555 - -------------------------------------------------------------------------------------------
(*) THESE ITEMS SHOULD BE EXPRESSED IN UNITS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF INCOME FROM JANUARY 1 TO DECEMBER 31 OF 2007 AND 2006 (thousands of Mexican pesos)
AUDITED - ---------------------------------------------------------------------------------------------------------------------- REF CATEGORIES CURRENT YEAR PREVIOUS YEAR R - ---------------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - ---------------------------------------------------------------------------------------------------------------------- r01 NET SALES 24,106,094 100 23,515,297 100 - ---------------------------------------------------------------------------------------------------------------------- r02 COST OF SALES 20,498,918 85 19,131,879 81 - ---------------------------------------------------------------------------------------------------------------------- r03 GROSS PROFIT 3,607,176 15 4,383,418 19 - ---------------------------------------------------------------------------------------------------------------------- r04 OPERATING EXPENSES 1,423,159 6 1,351,682 6 - ---------------------------------------------------------------------------------------------------------------------- r05 OPERATING INCOME 2,184,017 9 3,031,736 13 - ---------------------------------------------------------------------------------------------------------------------- r08 OTHER INCOME AND (EXPENSE), NET 21,329 0 39,205 0 - ---------------------------------------------------------------------------------------------------------------------- r06 COMPREHENSIVE FINANCING RESULT 40,503 0 (63,444) 0 - ---------------------------------------------------------------------------------------------------------------------- r12 EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------------- r48 NON ORDINARY ITEMS 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------------- r09 INCOME BEFORE INCOME TAXES 2,245,849 9 3,007,497 13 - ---------------------------------------------------------------------------------------------------------------------- r10 INCOME TAXES 620,674 3 608,721 3 - ---------------------------------------------------------------------------------------------------------------------- r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 1,625,175 7 2,398,776 10 - ---------------------------------------------------------------------------------------------------------------------- r14 DISCONTINUED OPERATIONS 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------------- r18 NET CONSOLIDATED INCOME 1,625,175 7 2,398,776 10 - ---------------------------------------------------------------------------------------------------------------------- r19 NET INCOME OF MINORITY INTEREST 96,118 0 220,082 1 - ---------------------------------------------------------------------------------------------------------------------- r20 NET INCOME OF MAJORITY INTEREST 1,529,057 6 2,178,694 9 - ----------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF INCOME BREAKDOWN OF MAIN CONCEPTS (thousands of Mexican pesos)
AUDITED - ----------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR R - ----------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - ----------------------------------------------------------------------------------------------------- r01 NET SALES 24,106,094 100 23,515,297 100 - ----------------------------------------------------------------------------------------------------- r21 DOMESTIC 7,075,267 29 7,575,777 32 - ----------------------------------------------------------------------------------------------------- r22 FOREIGN 17,030,827 71 15,939,520 68 - ----------------------------------------------------------------------------------------------------- r23 TRANSLATED INTO DOLLARS (***) 1,564,695 1,411,601 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- r08 OTHER INCOME AND (EXPENSE), NET 21,329 100 39,205 100 - ----------------------------------------------------------------------------------------------------- r49 OTHER INCOME AND (EXPENSE), NET 21,329 100 39,205 100 - ----------------------------------------------------------------------------------------------------- r34 EMPLOYEES' PROFIT SHARING EXPENSES 0 0 0 0 - ----------------------------------------------------------------------------------------------------- r35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0 - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- r06 COMPREHENSIVE FINANCING RESULT 40,503 100 (63,444) 100 - ----------------------------------------------------------------------------------------------------- r24 INTEREST EXPENSE 24,585 (61) 15,518 (24) - ----------------------------------------------------------------------------------------------------- r42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0 - ----------------------------------------------------------------------------------------------------- r45 OTHER FINANCE COSTS 0 0 0 0 - ----------------------------------------------------------------------------------------------------- r26 INTEREST INCOME 297,898 735 62,450 98 - ----------------------------------------------------------------------------------------------------- r46 OTHER FINANCIAL PRODUCTS 0 0 0 0 - ----------------------------------------------------------------------------------------------------- r25 FOREIGN EXCHANGE GAIN (LOSS), NET (37,879) (94) (37,424) (59) - ----------------------------------------------------------------------------------------------------- r28 RESULT FROM MONETARY POSITION (194,931) (481) (72,952) (115) - ----------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------- r10 INCOME TAXES 620,674 100 608,721 100 - ----------------------------------------------------------------------------------------------------- r32 INCOME TAX 111,522 18 627,612 103 - ----------------------------------------------------------------------------------------------------- r33 DEFERRED INCOME TAX 509,152 82 (18,891) (3) - -----------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF INCOME OTHER CONCEPTS (thousands of Mexican pesos)
AUDITED - ---------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR R - ---------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- r36 TOTAL SALES 24,593,431 24,178,722 - ---------------------------------------------------------------------------------------------------- r37 TAX RESULT FOR THE YEAR 0 0 - ---------------------------------------------------------------------------------------------------- r38 NET SALES (**) 24,106,094 23,515,297 - ---------------------------------------------------------------------------------------------------- r39 OPERATION INCOME (**) 2,184,017 3,031,736 - ---------------------------------------------------------------------------------------------------- r40 NET INCOME OF MAJORITY INTEREST (**) 1,529,057 2,178,694 - ---------------------------------------------------------------------------------------------------- r41 NET CONSOLIDATED INCOME (**) 1,625,175 2,398,776 - ---------------------------------------------------------------------------------------------------- r47 OPERATIVE DEPRECIATION AND AMORTIZATION 549,256 449,742 - ----------------------------------------------------------------------------------------------------
(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. QUARTERLY STATEMENTS OF INCOME FROM SEPTEMBER 1 TO DECEMBER 31 OF 2007 AND 2006 (thousands of Mexican pesos)
AUDITED - ---------------------------------------------------------------------------------------------------------------------- REF CATEGORIES CURRENT YEAR PREVIOUS YEAR R - ---------------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - ----------------------------------------------------------------------------------------------------------------------- rt01 NET SALES 5,824,351 100 4,898,726 100 - ----------------------------------------------------------------------------------------------------------------------- rt02 COST OF SALES 5,435,842 93 4,106,157 84 - ----------------------------------------------------------------------------------------------------------------------- rt03 GROSS PROFIT 388,509 7 792,569 16 - ----------------------------------------------------------------------------------------------------------------------- rt04 OPERATING EXPENSES 352,024 6 315,355 6 - ----------------------------------------------------------------------------------------------------------------------- rt05 OPERATING INCOME 36,485 1 477,214 10 - ----------------------------------------------------------------------------------------------------------------------- rt08 OTHER INCOME AND (EXPENSE), NET (24,331) 0 10,683 0 - ----------------------------------------------------------------------------------------------------------------------- rt06 COMPREHENSIVE FINANCING RESULT (167,318) (3) (53,614) (1) - ----------------------------------------------------------------------------------------------------------------------- rt12 EQUITY IN NET INCOME OF NON-CONSOLIDATED SUBSIDIARIES AND ASSOCIATES 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------- rt48 NON ORDINARY ITEMS 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------- rt09 INCOME BEFORE INCOME TAXES (155,164) (3) 434,283 9 - ----------------------------------------------------------------------------------------------------------------------- rt10 INCOME TAXES (119,559) (2) 247,449 5 - ----------------------------------------------------------------------------------------------------------------------- rt11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS (35,605) 0 186,834 4 - ----------------------------------------------------------------------------------------------------------------------- rt14 DISCONTINUED OPERATIONS 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------- rt18 NET CONSOLIDATED INCOME (35,605) 0 186,834 4 - ----------------------------------------------------------------------------------------------------------------------- rt19 NET INCOME OF MINORITY INTEREST (140,009) (2) (46,065) (1) - ----------------------------------------------------------------------------------------------------------------------- rt20 NET INCOME OF MAJORITY INTEREST 104,404 2 232,899 5 - -----------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. QUARTERLY STATEMENTS OF INCOME BREAKDOWN OF MAIN CONCEPTS (thousands of Mexican pesos)
AUDITED - ------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR R - ------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - -------------------------------------------------------------------------------------------------------- rt01 NET SALES 5,824,351 100 4,898,726 100 - -------------------------------------------------------------------------------------------------------- rt21 DOMESTIC 1,559,961 27 2,085,359 43 - -------------------------------------------------------------------------------------------------------- rt22 FOREIGN 4,264,390 73 2,813,367 57 - -------------------------------------------------------------------------------------------------------- rt23 TRANSLATED INTO DOLLARS (***) 420,709 293,798 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- rt08 OTHER INCOME AND (EXPENSE), NET (24,331) 100 10,683 100 - -------------------------------------------------------------------------------------------------------- rt49 OTHER INCOME AND (EXPENSE), NET (24,331) 100 10,683 100 - -------------------------------------------------------------------------------------------------------- rt34 EMPLOYEES' PROFIT SHARING EXPENSES 0 0 0 0 - -------------------------------------------------------------------------------------------------------- rt35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0 - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- rt06 COMPREHENSIVE FINANCING RESULT (167,318) 100 (53,614) 100 - -------------------------------------------------------------------------------------------------------- rt24 INTEREST EXPENSE 5,120 (3) 6,144 (11) - -------------------------------------------------------------------------------------------------------- rt42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0 - -------------------------------------------------------------------------------------------------------- rt45 OTHER FINANCE COSTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------- rt26 INTEREST INCOME 60,589 36 23,178 43 - -------------------------------------------------------------------------------------------------------- rt46 OTHER FINANCIAL PRODUCTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------- rt25 FOREIGN EXCHANGE GAIN (LOSS), NET (35,465) (21) (20,256) (38) - -------------------------------------------------------------------------------------------------------- rt28 RESULT FROM MONETARY POSITION (187,322) (112) (50,392) (94) - -------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------- rt10 INCOME TAXES (119,559) 100 247,449 100 - -------------------------------------------------------------------------------------------------------- rt32 INCOME TAX (158,241) (132) 98,360 40 - -------------------------------------------------------------------------------------------------------- rt33 DEFERRED INCOME TAX 38,682 32 149,089 60 - --------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. QUARTERLY STATEMENTS OF INCOME OTHER CONCEPTS (thousands of Mexican pesos)
AUDITED - ----------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR RT - ----------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - ----------------------------------------------------------------------------------------------------- rt47 OPERATIVE DEPRECIATION AND ACCUMULATED IMPAIRMENT LOSSES 169,880 119,188 - -----------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF CHANGES IN FINANCIAL POSITION FROM JANUARY 1 TO DECEMBER 31 OF 2007 AND 2006 (thousands of pesos)
AUDITED - -------------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR C - -------------------------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- c01 CONSOLIDATED NET INCOME 1,625,175 2,398,776 - -------------------------------------------------------------------------------------------------------------------- c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 1,062,983 436,312 - -------------------------------------------------------------------------------------------------------------------- c03 RESOURCES FROM NET INCOME FOR THE YEAR 2,688,158 2,835,088 - -------------------------------------------------------------------------------------------------------------------- c04 RESOURCES PROVIDED OR USED IN OPERATION (304,274) (401,251) - -------------------------------------------------------------------------------------------------------------------- c05 RESOURCES PROVIDED BY (USED FOR) OPERATING ACTIVITIES 2,383,884 2,433,837 - -------------------------------------------------------------------------------------------------------------------- c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES (128,292) (597,935) - -------------------------------------------------------------------------------------------------------------------- c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES 2,420,726 130,901 - -------------------------------------------------------------------------------------------------------------------- c08 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES 2,292,434 (467,034) - -------------------------------------------------------------------------------------------------------------------- c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (484,181) 12,845 - -------------------------------------------------------------------------------------------------------------------- c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS 4,192,137 1,979,648 - -------------------------------------------------------------------------------------------------------------------- c11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 2,204,018 224,370 - -------------------------------------------------------------------------------------------------------------------- c12 CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD 6,396,155 2,204,018 - --------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF CHANGES IN FINANCIAL POSITION BREAKDOWN OF MAIN CONCEPTS (thousands of pesos)
AUDITED - -------------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR C - -------------------------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 1,062,983 436,312 - -------------------------------------------------------------------------------------------------------------------- c13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 549,256 449,742 - -------------------------------------------------------------------------------------------------------------------- c41 + (-) OTHER ITEMS 513,727 (13,430) - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- c04 RESOURCES PROVIDED OR USED IN OPERATION (304,274) (401,251) - -------------------------------------------------------------------------------------------------------------------- c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE (237,795) 205,508 - -------------------------------------------------------------------------------------------------------------------- c19 + (-) DECREASE (INCREASE) IN INVENTORIES 123,835 (1,219,702) - -------------------------------------------------------------------------------------------------------------------- c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE (274,808) 234,752 - -------------------------------------------------------------------------------------------------------------------- c21 + (-) INCREASE (DECREASE) IN SUPPLIERS 255,378 336,227 - -------------------------------------------------------------------------------------------------------------------- c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES (170,884) 41,964 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES (128,292) (597,935) - -------------------------------------------------------------------------------------------------------------------- c23 + BANK FINANCING 0 0 - -------------------------------------------------------------------------------------------------------------------- c24 + STOCK MARKET FINANCING (124) (105) - -------------------------------------------------------------------------------------------------------------------- c25 + DIVIDEND RECEIVED 0 0 - -------------------------------------------------------------------------------------------------------------------- c26 OTHER FINANCING 0 0 - -------------------------------------------------------------------------------------------------------------------- c27 BANK FINANCING AMORTIZATION 0 (438,536) - -------------------------------------------------------------------------------------------------------------------- c28 (-) STOCK MARKET FINANCING AMORTIZATION 0 0 - -------------------------------------------------------------------------------------------------------------------- c29 (-) OTHER FINANCING AMORTIZATION (128,168) (159,294) - -------------------------------------------------------------------------------------------------------------------- c42 + (-) OTHER ITEMS 0 0 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- C07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES 2,420,726 130,901 - -------------------------------------------------------------------------------------------------------------------- c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 267,015 38,655 - -------------------------------------------------------------------------------------------------------------------- c31 (-) DIVIDENDS PAID 0 0 - -------------------------------------------------------------------------------------------------------------------- c32 + PREMIUM ON ISSUANCE OF SHARES 2,153,711 92,246 - -------------------------------------------------------------------------------------------------------------------- c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0 - -------------------------------------------------------------------------------------------------------------------- c43 + (-) OTHER ITEMS 0 0 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (484,181) 12,845 - -------------------------------------------------------------------------------------------------------------------- c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS 0 0 - -------------------------------------------------------------------------------------------------------------------- c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (485,668) (417,219) - -------------------------------------------------------------------------------------------------------------------- c36 (-) INCREASE IN CONSTRUCTION PROGRESS 0 0 - -------------------------------------------------------------------------------------------------------------------- c37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0 - -------------------------------------------------------------------------------------------------------------------- c38 + SALE OF TANGIBLE FIXED ASSETS 0 0 - -------------------------------------------------------------------------------------------------------------------- c39 + (-) OTHER ITEMS 1,487 430,064 - --------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. DATE PER SHARE CONSOLIDATED
UDITED - --------------------------------------------------------------------------------------------------------------------------- REF CATEGORIES QUARTER OF PRESENT QUARTER OF PREVIOUS D FINANCIAL YEAR FINANCIAL YEAR - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- d01 BASIC PROFIT PER ORDINARY SHARE (**) $ 3.27 $ 5.18 - --------------------------------------------------------------------------------------------------------------------------- d02 BASIC PROFIT PER PREFERRED SHARE (**) $ 0.00 $ 0.00 - --------------------------------------------------------------------------------------------------------------------------- d03 DILUTED PROFIT PER ORDINARY SHARE (**) $ 0.00 $ 0.00 - --------------------------------------------------------------------------------------------------------------------------- d04 EARNINGS (LOSS) BEFORE DISCONTINUED OPERATIONS PER COMMON SHARE (**) $ 3.27 $ 5.18 - --------------------------------------------------------------------------------------------------------------------------- d05 DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER SHARE (**) $ 0.00 $ 0.00 - --------------------------------------------------------------------------------------------------------------------------- d08 CARRYING VALUE PER SHARE $31.31 $25.42 - --------------------------------------------------------------------------------------------------------------------------- d09 CASH DIVIDEND ACCUMULATED PER SHARE $ 0.00 $ 0.00 - --------------------------------------------------------------------------------------------------------------------------- d10 DIVIDEND IN SHARES PER SHARE 0.00 shares 0.00 shares - --------------------------------------------------------------------------------------------------------------------------- d11 MARKET PRICE TO CARRYING VALUE 1.24 times 2.13 times - --------------------------------------------------------------------------------------------------------------------------- d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE 11.84 times 10.44 times - --------------------------------------------------------------------------------------------------------------------------- d13 MARKET PRICE TO BASIC PROFIT PER PREFERENT SHARE (**) 0.00 times 0.00 times - ---------------------------------------------------------------------------------------------------------------------------
(**) TO CALCULATE THE DATE PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS. MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. RATIOS CONSOLIDATED
AUDITED - --------------------------------------------------------------------------------------------------------------------------- REF CATEGORIES QUARTER OF PRESENT QUARTER OF PREVIOUS P FINANCIAL YEAR FINANCIAL YEAR - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- YIELD - --------------------------------------------------------------------------------------------------------------------------- p01 NET INCOME TO NET SALES 6.74% 10.20% - --------------------------------------------------------------------------------------------------------------------------- p02 NET INCOME TO STOCKHOLDERS' EQUITY (**) 10.29% 20.35% - --------------------------------------------------------------------------------------------------------------------------- p03 NET INCOME TO TOTAL ASSETS (**) 7.12% 13.29% - --------------------------------------------------------------------------------------------------------------------------- p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00% 0.00% - --------------------------------------------------------------------------------------------------------------------------- p05 INCOME DUE TO MONETARY POSITION TO NET INCOME (11.99)% (3.04)% - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- ACTIVITY - --------------------------------------------------------------------------------------------------------------------------- p06 NET SALES TO NET ASSETS (**) 1.06 times 1.30 times - --------------------------------------------------------------------------------------------------------------------------- p07 NET SALES TO FIXED ASSETS (**) 3.05 times 3.09 times - --------------------------------------------------------------------------------------------------------------------------- p08 INVENTORIES TURNOVER (**) 4.16 times 3.79 times - --------------------------------------------------------------------------------------------------------------------------- p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 32 days 30 days - --------------------------------------------------------------------------------------------------------------------------- p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 749.09% 6.41% - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- LEVERAGE - --------------------------------------------------------------------------------------------------------------------------- p11 TOTAL LIABILITIES TO TOTAL ASSETS 24.47% 28.17% - --------------------------------------------------------------------------------------------------------------------------- p12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 0.32 times 0.39 times - --------------------------------------------------------------------------------------------------------------------------- p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 42.02% 43.76% - --------------------------------------------------------------------------------------------------------------------------- p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00% - --------------------------------------------------------------------------------------------------------------------------- p15 OPERATING INCOME TO INTEREST PAID 88.84 times 195.37 times - --------------------------------------------------------------------------------------------------------------------------- p16 NET SALES TO TOTAL LIABILITIES (**) 4.31 times 4.63 times - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- LIQUIDITY - --------------------------------------------------------------------------------------------------------------------------- p17 CURRENT ASSETS TO CURRENT LIABILITIES 5.05 times 3.40 times - --------------------------------------------------------------------------------------------------------------------------- p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 3.33 times 1.66 times - --------------------------------------------------------------------------------------------------------------------------- p19 CURRENT ASSETS TO TOTAL LIABILITIES 2.59 times 1.94 times - --------------------------------------------------------------------------------------------------------------------------- p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 223.63% 75.80% - --------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------- CASH FLOW - --------------------------------------------------------------------------------------------------------------------------- p21 RESOURCES FROM NET INCOME TO NET SALES 11.15% 12.06% - --------------------------------------------------------------------------------------------------------------------------- p22 RESOURCES FROM CHANGES IN WORKING CAPITAL TO NET SALES (1.26)% (1.71)% - --------------------------------------------------------------------------------------------------------------------------- p23 RESOURCES GENERATED (USED) IN OPERATING TO INTEREST PAID 96.96 times 156.84 times - --------------------------------------------------------------------------------------------------------------------------- p24 EXTERNAL FINANCING TO RESOURCES PROVIDED BY (USED FOR) FINANCING (5.60)% 128.03% - --------------------------------------------------------------------------------------------------------------------------- p25 INTERNAL FINANCING TO RESOURCES PROVIDED (USED FOR) FINANCING 105.60% (28.03)% - --------------------------------------------------------------------------------------------------------------------------- p26 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES 100.31% (3,248.10)% - ---------------------------------------------------------------------------------------------------------------------------
(**) IN THESE RATIOS FOR THE DATA TAKE INTO CONSIDERATION THE LAST TWELVE MONTHS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. DIRECTOR REPORT AUDITED CONSOLIDATED Grupo Simec, S.A.B. de C.V. ("Simec") announced today its final audited results of operations for the year ended December 31, 2007. Acquisition of Corporacion Aceros DM, S.A. de C.V. On February 21, 2008, Simec executed an agreement to acquire 100% of the shares of Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates ("Grupo San"). Grupo San is a long products steel mini-mill and the second-largest corrugated rebar producer in Mexico. Grupo San's operations are based in San Luis Potosi, Mexico. Its plants and its 1,457 employees rely on cutting edge technology to produce 700 thousand tons of finished products annually. With this acquisition, Simec and Industrias CH, S.A. de C.V. ("ICH") position themselves as the second largest producers of rebar and the largest steel producers in Mexico, with a production capacity of approximately 4.5 million tons of liquid steel and 3.8 million tons of finished products. With this strategic acquisition, Simec and ICH will achieve a more diversified product mix and sales mix, with 50% of sales in Mexico and 50% outside Mexico, both of which will allow them to better address the natural cycles of the steel industry at the domestic and global levels. Additionally, Simec and ICH have already identified significant synergies and economies of scale that will increase Simec's operating margins. Grupo San's central location in Mexico, where Simec and ICH are not currently present, also represents a strong competitive advantage since it provides several strategic benefits mainly related to distribution given its proximity to Mexico's main cities, sea ports, and borders. In addition, Grupo San has aggressive expansion plans in its corrugated rebar business, which ICH and Simec will support and promote to satisfy the growing demand for this product resulting from the Mexican Government's aggressive infrastructure plan. Simec, the main subsidiary of ICH, will acquire 100% of the shares of Grupo San. The transaction is valued at 850 million U.S. dollars, 85% of which will be paid with cash generated by the company's operations and by the company's stock public offering, which took place in February 2007. This acquisition confirms the growth strategy that has characterized ICH, reaffirming its position as a consolidator in the steel sector. This acquisition is subject to the approval of Mexico's federal competition commission, Comision Federal de Competencia, as well as Simec's shareholders' meeting. Grupo San's shareholders were advised by Lehman Brothers, Inc. and by the law office of Galicia y Robles, S.C. Simec was represented by the law office of Mijares, Angoitia, Cortes y Fuentes, S.C. Year Ended December 31, 2007 compared to Year Ended December 31, 2006 Net Sales Net sales increased 3% to Ps. 24,106 million in 2007 compared to Ps. 23,515 million in 2006. Shipments of finished steel products increased 0.5% to 2,693 thousand tons in 2007 compared to 2,673 thousand tons in 2006. Total sales outside of Mexico in 2007 increased 7% to Ps. 17,031 million compared with Ps. 15,939 million in 2006, while total Mexican sales decreased 7% from 7,576 million in 2006 to Ps. 7,075 million in 2007. The increase in sales can be explained by higher shipments during 2007, compared with 2006 (14,000 tons increase). The increase in tons shipped originated mainly in the plant of Apizaco and compensated for the two unexpected stoppages in the rolling lines of the plants in Guadalajara and Apizaco due during the periods July 5-8, July 10-13, and September 10-15, as a result of the shortage of natural gas due to the explosions on the property of Petroleos Mexicanos. Direct Cost of Sales Direct cost of sales increased 7% from Ps. 19,132 million in 2006 to Ps. 20,499 million in 2007. Direct cost of sales as a percentage of net sales represented 85% in 2007 compared to 81% in 2006. The increase in the Direct Cost of Sales is attributable mainly to an increase of 6% in real terms in the average cost of raw materials used to produce steel products in 2007 versus 2006, primarily as a result of increases in the price of scrap and certain other raw materials and an increase in the labor costs per ton sold, due to the three unexpected stoppages in the rolling lines of the plants in Guadalajara and Apizaco due during the periods July 5-8, July 10-13, and September 10-15, as a result from the shortage in natural gas due to the explosions on the property of Petroleos Mexicanos. Gross Profit Gross profit in 2007 decreased 18% to Ps. 3,607 million compared to Ps. 4,383 million in 2006. Gross profit as a percentage of net sales in 2007 was 15% compared to 19% in 2006. The decline in gross profit is due to the increase in cost of goods sold due to the reasons previously mentioned. Operating Expenses Operating expenses increased 5% to Ps. 1,423 million in 2007 compared to Ps. 1,351 million in 2006 (depreciation and amortization increased Ps. 99 million in 2007 compared to 2006) but remained stable at 6% of net sales. Operating Profit Operating profit decreased 28% from Ps. 3,032 million in 2006 to Ps. 2,184 million in 2007. Operating profit as a percentage of net sales was 9% in 2007 compared to 13% in 2006. The decline in operating profit is due to the increase in cost of goods sold due to the reasons previously mentioned. Comprehensive Financial Cost Comprehensive financial cost in 2007 represented a gain of Ps. 40 million compared with a expense of Ps. 63 million in 2006. Net interest income was Ps. 273 million in 2007, compared with Ps. 47 million in 2006 due to larger cash balances during this year partly reflecting our recent capital increase in February 2007. At the same time we registered an exchange loss of Ps. 38 million in 2007 compared with an exchange loss of Ps. 37 million in 2006, reflecting a 0.1% decrease in the value of the peso versus the dollar in 2007 compared to 2006. Simec recorded a loss from monetary position of Ps. 195 million in 2007 compared to a loss from monetary position of Ps. 73 million in 2006, reflecting the domestic inflation rate of 3.6% in 2007 as compared to a 4% inflation rate in 2006. Other Expenses (Income) net The company recorded other income net of Ps. 21 million in 2007 compared to other income net for Ps. 39 million in 2006. Income Tax Income Tax recorded Ps. 620 million in 2007 compared to Ps. 609 million in 2006. In 2006, we amortized Ps. 364 million of our deferred credit which is non-taxable income. This does not affect the cash flow. Net Profit As a result of the foregoing, net profit decreased by 32% to Ps. 1,625 million in 2007 from Ps. 2,399 million in 2006. Liquidity and Capital Resources At December 31, 2007, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest at December 31, 2007 was U.S. $363,703 dollars). At December 31, 2006, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest at December 31, 2006 was U.S. $336,525 dollars). Net resources provided by operations were Ps. 2,384 million in 2007 versus Ps. 2,434 million of net resources provided by operations in 2006. Net resources provided by financing activities were Ps. 2,292 million in 2007 (which amount includes the capital increase of Ps. 2,421 million in February 2007) versus Ps. 467 million of net resources used by financing activities in 2006. Net resources used in investing activities (to acquire property, plant and equipment, other non-current assets and liabilities) were Ps. 484 million in 2007 versus net resources provided by investing activities (to acquire property, plant and equipment, other non-current assets and liabilities and proceeds for insurance claim) of Ps. 13 million in 2006. Comparative fourth quarter 2007 vs third quarter 2007 Net Sales Net sales increased 2% from Ps. 5,737 million for the third quarter 2007 to Ps. 5,824 million for the third quarter 2007. Sales in tons of finished steel products increased 7% to 675 thousand tons in the fourth quarter 2007 compared with 635 thousand tons in the third quarter 2007. The total sales outside of Mexico for the fourth quarter 2007 increased 6% to Ps. 4,264 million compared with Ps. 4,038 million for the third quarter 2007. Total Mexican sales decreased from Ps. 1,699 million in the third quarter 2007 to Ps.1,560 millions in the fourth quarter 2007. Prices of finished products sold in the fourth quarter 2007 decreased approximately 4% in real terms compared to the third quarter 2007. Direct Cost of Sales Direct cost of sales increased 10% from Ps. 4,937 million in the third quarter 2007 to Ps. 5,436 million for the fourth quarter 2007. In the fourth quarter 2007, the direct cost of sales represented 93% of net sales compared to 86% for the third quarter 2007. The average cost of raw materials used to produce steel products increased 4% in real terms in the fourth quarter 2007 versus the third quarter 2007, primarily as a result of increases in the price of scrap and certain other raw materials. Gross Profit Gross profit for the fourth quarter 2007 decreased 52% to Ps. 388 million compared to Ps. 800 million in the third quarter 2007. Gross profit as a percentage of net sales for the fourth quarter 2007 was 7% compared with 14% for the third quarter 2007. The decline in gross profit is due to the increase in the average cost of raw materials to produce steel products due to the reasons previously mentioned. Operating Expenses Operating expenses were Ps. 352 million in the fourth quarter 2007 compared to Ps. 354 million for the third quarter 2007. As a percentage of sales, operating expense represented 6% during the fourth quarter of 2007 compared to 6% in the third quarter of 2007. Operating Profit Operating profit decreased 92% from Ps. 446 million in the third quarter 2007 to Ps. 36 million for the fourth quarter 2007. Operating profit as a percentage of net sales decreased to 1% in the fourth quarter 2007 from 8% in the third quarter 2007. This was due to an increase of 4% in the average cost of raw materials. Comprehensive Financial Cost Comprehensive financial cost for the fourth quarter 2007 represented an expense of Ps. 167 million compared with an income of Ps. 91 million for the third quarter 2007. Net interest income was Ps. 55 million in the fourth quarter 2007 compared with Ps. 93 million in the third quarter 2007, due to larger cash balances during this year partly reflecting our recent capital increase in February 2007. At the same time, we registered an exchange loss of Ps. 35 million in the fourth quarter 2007 compared with an exchange gain of Ps. 29 million in the third quarter 2007. Simec recorded a loss from monetary position of Ps. 187 million in the fourth quarter 2007 compared to a loss from monetary position of Ps. 31 million in the third quarter 2007. Other Expenses (Income) net The company recorded other income net of Ps. 24 million for the fourth quarter 2007 compared with other income net of Ps. 27 million for the third quarter 2007. Income Tax Income Tax for the fourth quarter 2007 decreased Ps. 119 million compared to a provision of Ps. 199 million for the third quarter 2007. Net Profit As a result of the foregoing, net profit decreased by 55% to Ps. 163 million in the fourth quarter 2007 from Ps. 365 million in the third quarter 2007. Comparative fourth quarter 2007 vs. fourth quarter 2006 Net Sales Net sales increased 19% from Ps. 4,898 million for the fourth quarter 2006 compared with Ps. 5,824 million for the same period 2007. Sales in tons of finished steel increased 9% to 675 thousand tons in the fourth quarter 2007 compared with 622 thousand tons in the same period 2006. The total sales outside of Mexico for the fourth quarter 2007 increased 52% to Ps. 4,264 million compared with Ps. 2,813 million for the same period 2006. Total Mexican sales decreased 25% to 1,560 million in the fourth quarter 2007 from Ps. 2,085 millions in the same period 2006. Prices of finished products sold in the fourth quarter 2007 increased approximately 10% in real terms compared to the fourth quarter 2006. Direct Cost of Sales Direct cost of sales increased 32% from Ps. 4,106 million in the fourth quarter 2006 to Ps. 5,436 million for the same period 2007. With respect to sales, in the fourth quarter 2007, the direct cost of sales represents 93% compared to 84% for the same period 2006. The average cost of raw materials used to produce steel products increased 22% in real terms in the fourth quarter 2007 versus the fourth quarter 2006, primarily as a result of increases in the price of scrap and certain other raw materials. Gross Profit Gross profit for the fourth quarter 2007 decreased 51% to Ps. 388 million compared to Ps. 792 million in the same period 2006. The gross profit as a percentage of net sales for the fourth quarter 2007 was 7% compared with 16% for the same period of 2006. The decline in gross profit is due to the increase in cost of goods sold due to the reasons previously mentioned. Operating Expenses Operating expenses increased 12% to Ps. 352 million in the fourth quarter 2007 compared to Ps. 315 million for the same period 2006, the depreciation and amortization in the fourth quarter 2007 was Ps. 170 million compared to Ps. 119 million in the same period of 2006. Operating expenses as a percentage of net sales represented 6% during the fourth quarter 2007 compared to 6% of the same period 2006. Operating Profit Operating profit decreased 92% from Ps. 477 million in the fourth quarter 2006 to Ps. 36 million for the same period 2007. The operating profit as a percentage of net sales in the fourth quarter 2007 was 1% compared to 10% in the same period 2006. The decline in operating profit is due to the increase in cost of goods sold due to the reasons previously mentioned. Comprehensive Financial Cost Comprehensive financial cost for the fourth quarter 2007 represented an expense of Ps. 167 million compared with an expense of Ps. 54 million for the fourth quarter 2006. Net interest income was Ps. 55 million in the fourth quarter 2007 compared with Ps. 17 million in the fourth quarter 2006, due to larger cash balances during 2007 partly reflecting our recent capital increase in February 2007. At the same time we registered an exchange loss of Ps. 35 million in the fourth quarter 2007 compared with an exchange loss of Ps. 20 million in the fourth quarter 2006 Simec recorded a loss from monetary position of Ps. 187 million in the fourth quarter 2007 compared to a loss from monetary position of Ps. 51 million in the fourth quarter 2006. Other Expenses (Income) net The company recorded other income net of Ps. 24 million for the fourth quarter 2007 compared with other income net of Ps. 11 million for the same period 2006. Taxes and Profit Sharing Taxes and profit sharing for the fourth quarter 2007 decreased to Ps. 119 million compared to Ps. 247 million for the same period 2006. Net Profit As a result of the foregoing, Simec recorded loss profit of Ps. 36 million in the fourth quarter 2007 compared to net profit of Ps. 187 million in the fourth quarter 2006. Year ended Year ended 2007 December 31, December 31, vs (Millions of pesos) 2007 2006 2006 Sales 24,106 23,515 3% Cost of Sales 20,499 19,132 7% Gross Profit 3,607 4,383 -18% Operating Expenses 1,423 1,351 5% Operating Profit 2,184 3,032 -28% EBITDA 2,733 3,481 -21% Net Profit 1,625 2,399 -32% Sales outside Mexico 17,031 15,939 7% Sales in Mexico 7,075 7,576 -7% Total sales (tons) 2,693 2,673 1% 4Q'07 vs 4Q'07 vs (Millions of pesos) 4Q'07 3Q'07 4Q'06 3Q'07 4Q'06 Sales 5,824 5,737 4,898 2% 19% Cost of Sales 5,436 4,937 4,106 10% 32% Gross Profit 388 800 792 -52% -51% Operating Expenses 352 354 315 -1% 12% Operating Profit 36 446 477 -92% -92% EBITDA 206 571 596 -64% -65% Net Profit -36 365 187 -110% -119% Sales outside Mexico 4,264 4,038 2,813 6% 52% Sales in Mexico 1,560 1,699 2,085 -8% -25% Total sales (tons) 675 635 622 6% 9%
Average Average Thousands Millions price Thousands Millions price of tons of pesos per ton of tons of pesos per ton year ended year ended year ended year ended year ended year ended December December December December December December Product 31,2007 31,2007 31,2007 31,2006 31,2006 31,2006 SBQ 1,946 18,419 9,465 1,941 18,050 9,300 Light Structural 276 2,162 7,834 266 1,894 7,122 Structural 216 1,752 8,112 204 1,632 7,998 Rebar 250 1,703 6,810 260 1,909 7,343 Others 5 70 - 2 30 - otal 2,693 24,106 8,951 2,673 23,515 8,797
Thousands Millions Average price of tons of pesos per ton Product 4Q'07 4Q'07 4Q'07 SBQ 497 4,524 9,102 Light Structural 59 457 7,754 Structural 45 357 7,930 Rebar 70 456 6,510 Others 4 30 0 Total 675 5,824 8,629 Thousands Millions Average price of tons of pesos per ton Product 3Q'07 3Q'07 3Q'07 SBQ 467 4,438 9,504 Light Structural 60 489 8,143 Structural 50 401 8,011 Rebar 58 388 6,694 Others 0 21 0 Total 635 5,737 9,035 Thousands Millions Average price of tons of pesos per ton Product 4Q'06 4Q'06 4Q'06 SBQ 459 3,685 8,029 Light Structural 51 371 7,270 Structural 52 434 8,339 Rebar 60 395 6,577 Others 0 13 0 Total 622 4,898 7,874 Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein. MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. FINANCIAL STATEMENT NOTES AUDITED CONSOLIDATED (1) Operations preparation bases and summary of significant accounting policies: Grupo Simec, S.A. de C.V. and its Subsidiaries ("the Company") are subsidiaries of Industrias CH, S.A.B. de C.V. ("ICH"), and their main activities consist of the manufacturing and sale of steel products primarily destined for the construction sector of Mexico and other countries. Significant accounting policies and practices followed by the Companies which affect the principal captions of the financial statements are described below: a. Financial statement presentation - The consolidated financial statements have been prepared in accordance with principles generally accepted in Mexico, which include the recognition of the effects of inflation on the financial information and the presentation in constant Mexican pesos. b. Principles of Consolidation - As part of the financial debt restructuring agreement into during 1997, Compania Siderurgica de Guadalajara, S.A. de C.V. ("CSG") assumed all of the debt of the Company in return for an equity interest in its subsidiaries. As a result of the above, the Company is the principal shareholder of CSG, and CSG is the principal shareholder of the other subsidiaries that Grupo Simec, S.A. de C.V. ("Simec") controlled before the restructuring. The main subsidiaries of CSG are the following: o (degree) Compania Siderurgica de California, S.A. de C.V. o (degree) Industrias del Acero y del Alambre, S.A. de C.V. o (degree) Pacific Steel Inc. o (degree) SimRep Corporation and PAV Republic and Subsidiaries All significant intercompany balances and transactions have been eliminated in consolidation. c. Cash and cash equivalents - The Company considers short-term investments with original maturities not greater than three months to be cash equivalent. Cash equivalents include temporary investments and Mexican Government Treasury Bonds, and are stated at market value, which approximates cost plus earned interest. Any increase in market value is credited to operations for the period. d. Inventories - The inventories are originally stated at average cost and subsequently adjusted to replacement value at the balance sheet date. The replacement values do not exceed market and are determined as follows: Billet finished goods and work in process - At the latest production cost for the month. Raw materials - According to purchase prices prevailing in the market at the balance sheet date. Materials, supplies and rollers - At historical cost, restated by applying the steel industry inflation index. The Company presents as non-current inventories the rollers and spare parts, which according to historical data and production trends will not be used within a one-year period. e.- Derivative financial instruments-- The Company is using derivative financial instruments for hedging risks associated with natural gas prices and conducted studies on historical consumption, future requirements and commitments; thus it avoided exposure to risks other than the normal operating risks. Management of the Company examines its financial risks by continually analyzing price, credit and liquidity risks. The Company uses futures contracts for hedging risks from fluctuations in natural gas prices, which are based on demand and supply at the principal international markets. As applicable, the Company recognized the fair value of instruments either as liabilities or assets. Such fair value and thus, the value of these assets or liabilities were restated at each month's-end. The Company opted for the early adoption of Bulletin C-10 "Derivative Financial Instruments and Hedging"; therefore, at December 31, 2003 the fair value of natural gas in force during 2004, 2005 and 2006 and which effective portions will not be offset against the asset risks until consumed, were recognized within the comprehensive income account in stockholders' equity. f. Property, plant and equipment - Property, plant and equipment of domestic origin are restated by using factors derived from The National Consumer Price Index ("NCPI") from the date of their acquisition, and imported machinery and equipment are restated by applying devaluation and inflation factors of the country of origin. Depreciation recorded in the consolidated statement of income (loss) is computed based upon the estimated useful life and the restated cost of each asset. In addition, Financial expense incurred during the construction period is capitalized as construction in progress. The capitalized amounts are restated using a factor derived from the NCPI cumulative from the date of capitalization through period-end and are amortized over the average depreciation period of the corresponding assets. The estimated useful lives of assets as of December 31, 2007 are as follows: Years ----- Buildings...................................... 15 to 50 Machinery and equipment ....................... 10 to 40 Buildings and improvements (Republic).......... 10 to 25 Land improvements (Republic)................... 5 to 25 Machinery and equipment (Republic)............. 5 to 20 g. Other assets - Organization and pre-operating expenses are capitalized and restated using a factor derived from the NCPI cumulative from the date of generation through period-end, and their amortization is calculated by the straight-line method over a period of 20 years. h. Seniority premiums and severance payments - According to Federal Labor Law, employees are entitled to seniority premiums after fifteen years or more of services. These premiums are recognized as expenses in the years in which the services are rendered, using actuarial calculations based on the projected unit credit method, and since 1996 by applying real interest and salary increases. Any other payments to which employees may be entitled in case of separation, disability or death, are charged to operations in the period in which they become payable. i. Pension plan - Until 1995, the Company provided pension benefits for all personnel with a minimum of 10 years of service and 35 years of age. The Company had established an irrevocable trust for its contributions, which were based on actuarial calculations. In December 1995, the board of directors of the Company, in agreement with the trade union, discontinued these benefits and related contributions to the trust fund. This decision was made because of the new Mexican pension fund system, Administradoras de Fondos para el Retiro, which establishes similar benefits for the employees. The balance of the trust fund will be applied to the retirement benefits of qualifying employees until the fund is exhausted due to the irrevocable status of the fund. The Company does not have any contractual obligation regarding the payment of pensions of retirements. j. Cost of sales - Cost of sales related to sales of inventory items is recorded at standard cost, which approximates the replacement cost at the date of sale. k. Income tax and employee profit sharing - In 1999, the Mexican Institute of Public Accountants issued Bulletin D-4, "Accounting for Income and Asset Taxes and Employee Profit Sharing", which is effective for all fiscal years beginning January 1, 2000. Bulletin D-4 establishes financial accounting and reporting standards for the effects of asset tax, income tax and employee profit sharing that result from enterprise activities during the current and preceding years. The Company and its subsidiaries are included in the consolidated tax returns of the company's parent. l. Foreign currency transactions and exchange differences - All transactions in foreign currency are recorded at the exchange rates prevailing on the date of their execution or liquidation. Foreign currency denominated assets and liabilities are translated at the exchange rates prevailing at the balance sheet date. Any exchange differences incurred with regard to assets or liabilities denominated in foreign currency are charged to operations of the period and are included in financial income (expense) in the accompanying consolidated statements of income (loss). For consolidation purposes, the financial statements of the subsidiaries abroad, SimRep and subsidiaries, Pacific Steel and Undershaft Investment, were translated into pesos in conformity with Mexican accounting Bulletin B-15, Transactions in Foreign Currency and Translation of Financial Statements of Foreign Operations. The subsidiary SimRep was considered as a foreign entity for translation purposes; therefore the financial statements as reported by the subsidiary abroad were adjusted to conform with Mexican GAAP, which includes the recognition of the effects of inflation as required by Mexican accounting Bulletin B-10, applying inflation adjustment factors derived from the U.S. Consumer Price Index (CPI) published by the U.S. labor department, The financial information already restated to include inflationary effects, is translated to Mexican pesos as follows: - -By applying the prevailing exchange rate at the consolidated balance sheet date for monetary and non-monetary assets and liabilities. - -By applying the prevailing exchange rate for stockholders' equity accounts, at the time capital contributions were made and earnings were generated. - -By applying the prevailing exchange rate at the consolidated balance sheet date for revenues and expenses during the reporting period. - -The related effect of translation is recorded in stockholders' equity under the caption Equity adjustments for non monetary assets. - -The resulting amounts were restated applying adjustment factors derived from the NCPI, in conformity with Mexican accounting Bulletin B-10. The subsidiaries Pacific Steel and Undershaft Investment, were considered an "integral part of the operations" of the Company; and the financial statements of such subsidiaries were translated into Mexican pesos as follows: By applying the prevailing exchange rate at the consolidated balance sheet date for monetary items. By applying the prevailing exchange rate at the time the non-monetary assets and capital are generated, and the weighted average exchange rate of the period for income statement items. The related effect of translation is recorded in the statement of operations as part of the caption Comprehensive financing cost. The resulting amounts were restated applying adjustment factors derived from the Mexican NCPI, in conformity with Mexican accounting Bulletin B-10. m. Geographic concentration of credit risk - The Company sells its products primarily to distributors for the construction industry with no specific geographic concentration. Additionally, no single customer accounted for a significant amount of the Company's sales, and there were no significant accounts receivable from a single customer or affiliate at December 31, 2007 and at December 31, 2007, direct sales to two customers accounted for approximately 10% and 16.6% of the Republic's sales. The Company performs evaluations of its customers' credit histories and establishes and allowance for doubtful accounts based upon the credit risk of specific customers and historical trends. n. Other income (expenses) - Other income (expenses) shown in the consolidated statements of operations primarily includes other financial operations. o. Gain on monetary position - The gain on monetary position in the consolidated statements of income (loss) is determined by applying to net monetary assets or liabilities at the beginning of each month the factor of inflation derived from the NCPI and is restated at period-end with the corresponding factor. p. Restatement of capital stock and retained earnings (losses) - This is determined by multiplying capital stock contributions and retained earnings (losses) by factors derived from the NCPI, which measure the cumulative inflation from the date when capital stock contributions were made and earnings (losses) were generated, through the latest period-end. q. Effect of restatement of stockholders' equity - The effect resulting from restating stockholders' equity includes the accumulated effect from holding non-monetary assets, which represents the change in the specific price level of those assets compared to the change in the NCPI. (2) Financial Debt: At December 31, 2007 Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest at December 31, 2007 was U.S. $363,703 dollars. At December 31, 2006, Simec's total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest at December 31, 2006 was U.S. $336,525 dollars. (3) Commitments and contingent liabilities: a. Pacific Steel, Inc. (a wholly-owned subsidiary located in the U.S.A.) has been named in various claims and suits relating to the generation, storage, transport, disposal and cleanup of materials classified as hazardous waste. The Company has accrued approximately Ps. 14,727 (U.S. $1,355,297) at December 31, 2007, (included in accrued liabilities) relating to these actions; the reduction of this reserve from previous levels reflects clean-up activities undertaken by Simec. Management believes the ultimate liability with respect to this matter will not exceed the amounts that have been accrued. b. The Company is subject to various other legal proceeding and claims, which have arisen, in the ordinary course of its business. It is the opinion of management that their ultimate resolution will not have a material adverse effect on the Company's consolidated financial position or consolidated results of operations. MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: IMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. RELATIONS OF SHARES INVESTMENTS AUDITED CONSOLIDATED
- ----------------------------------------------------------------------------------------------------------------------------- COMPANY NAME MAIN ACTIVITIES NUMBER OF OWNERSHIP SHARES - ----------------------------------------------------------------------------------------------------------------------------- SUBSIDIARIES - ----------------------------------------------------------------------------------------------------------------------------- Cia siderurgica de Guadalajara Production of steel products 99.99 - ----------------------------------------------------------------------------------------------------------------------------- Simec International Production and sales of steel 99.99 products - ----------------------------------------------------------------------------------------------------------------------------- Arrendadora Simec Production and sales of steel 100.00 products - ----------------------------------------------------------------------------------------------------------------------------- Controladora Simec Sub-Holding 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Pacific Steel Scrap purchase 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Cia. Siderurgica del Pacifico Rent of land 99.99 - ----------------------------------------------------------------------------------------------------------------------------- Coordinadora de Servicios Siderurgicos de Calidad Administrative services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Comercializadora Simec Sales of steel products 99.99 - ----------------------------------------------------------------------------------------------------------------------------- Industrias del Acero y del Alambre Sales of steel products 99.99 - ----------------------------------------------------------------------------------------------------------------------------- Procesadora Mexicali Scrap purchase 99.99 - ----------------------------------------------------------------------------------------------------------------------------- Servicios Simec Administrative services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Sistemas de Transporte de Baja California Freight services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Operadora de Metales Administrative services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Operadora de Servicios Siderurgicos de Tlaxcala Administrative services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Administradora de Servicios Siderurgicos de Tlaxcala Administrative services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- Operadora de Servicios de la Industria Siderurgica Administrative services 100.00 - ----------------------------------------------------------------------------------------------------------------------------- SimRep Sub-Holding 50.22 - ----------------------------------------------------------------------------------------------------------------------------- PAV Republic Production and sales of steel 50.22 products - ----------------------------------------------------------------------------------------------------------------------------- CSG Comercial Sales of steel products 99.95 - ----------------------------------------------------------------------------------------------------------------------------- Comercializadora de Aceros de Tlaxcala Sales of steel products 99.95 - ----------------------------------------------------------------------------------------------------------------------------- Siderurgica de Baja California Sales of steel products 99.95 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT IN SUBSIDIARIES - ----------------------------------------------------------------------------------------------------------------------------- ASSOCIATEDS - ----------------------------------------------------------------------------------------------------------------------------- 0 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL INVESTMENT IN ASSOCIATEDS 0 - ----------------------------------------------------------------------------------------------------------------------------- OTHER PERMANENT INVESTMENTS 0.00 - ----------------------------------------------------------------------------------------------------------------------------- TOTAL 0 - -----------------------------------------------------------------------------------------------------------------------------
NOTES MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: IMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. CREDITS BREAK DOWN (THOUSANDS OF MEXICAN PESOS) AUDITED CONSOLIDATED
- ----------------------------------------------------------------------------------------------------------------------------------- Amortization Rate of Denominated in Pesos (Thousands of Pesos) Denominated in Foreign Currency (Thousands of Pesos) - ----------------------------------------------------------------------------------------------------------------------------------- Credit Type / Date Interest Institution Time Interval Time Interval - ----------------------------------------------------------------------------------------------------------------------------------- Current Until 1 Until Until Until Until Current Until 1 Until Until Until Until 2 3 4 5 2 3 4 5 - ----------------------------------------------------------------------------------------------------------------------------------- Years Years Year Year Years Years Years or Year Year Years Years Years or - ----------------------------------------------------------------------------------------------------------------------------------- More More - ----------------------------------------------------------------------------------------------------------------------------------- BANKS - ----------------------------------------------------------------------------------------------------------------------------------- With Warranty 0 0 0 0 0 0 0 0 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL BANKS 0 0 0 0 0 0 0 0 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- LISTED IN THE STOCK EXCHANGE - ----------------------------------------------------------------------------------------------------------------------------------- UNSECURED DEBT - ----------------------------------------------------------------------------------------------------------------------------------- Medium Term Notes 15/12/1998 9.33 0 0 0 0 0 0 0 3,282 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL STOCK EXCHANGE 0 0 0 0 0 0 0 3,282 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- SUPPLIERS - ----------------------------------------------------------------------------------------------------------------------------------- Various 0 261,280 0 0 0 0 0 1,842,955 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL SUPPLIERS 0 261,280 0 0 0 0 0 1,842,955 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- OTHER LOANS WITH COST - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 0 0 0 0 0 0 0 0 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- OTHER CURRENT LIABILITIES WITHOUT COST - ----------------------------------------------------------------------------------------------------------------------------------- Various 0 177,936 0 0 0 0 0 502,120 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 0 177,936 0 0 0 0 0 502,120 0 0 0 0 - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- TOTAL 0 439,216 0 0 0 0 0 2,348,357 0 0 0 0 - -----------------------------------------------------------------------------------------------------------------------------------
NOTES: The exchange rate of the peso to the U.S. Dollar at December 31, 2007 was Ps. 10.8662 MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: IMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. MONETARY FOREIGN CURRENCY POSITION (Thousands of Mexican Pesos)
AUDITED CONSOLIDATED - -------------------------------------------------------------------------------------------------------------------------- DOLLARS OTHER CURRENCIES TOTAL - -------------------------------------------------------------------------------------------------------------------------- FOREING CURRENCY POSITION THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF THOUSANDS OF DOLLARS PESOS DOLLARS PESOS PESOS - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 758,115 8,237,831 0 0 8,237,831 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- LIABILITIES POSITION 216,080 2,347,980 34 377 2,348,357 - -------------------------------------------------------------------------------------------------------------------------- SHORT TERM LIABILITIES POSITION 216,080 2,347,980 34 377 2,348,357 - -------------------------------------------------------------------------------------------------------------------------- LONG TERM LIABILITIES POSITION 0 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- NET BALANCE 542,035 5,889,851 (34) (377) 5,889,474 - --------------------------------------------------------------------------------------------------------------------------
NOTES THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT DECEMBER 31, 2007 WAS PS. 10.8662 MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: IMEC QUARTER: 4 YEAR:2007 GRUPO SIMEC, S.A.B. DE C.V. RESULT FROM MONETARY POSITION (Thousands of Mexican Pesos)
AUDITED CONSOLIDATED - --------------------------------------------------------------------------------------------------------------------------------- MONETARY MONETARY ASSET (LIABILITY) MONTHLY (PROFIT) MONTH ASSETS LIABILITIES MONETARY POSITION MONTHLY INFLATION AND LOSS - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- JANUARY 3,373,099 2,186,629 (1,186,470) 0.52 (6,128) - --------------------------------------------------------------------------------------------------------------------------------- FEBRUARY 3,663,966 1,510,290 (2,153,676) 0.28 (6,020) - --------------------------------------------------------------------------------------------------------------------------------- MARCH 6,158,413 1,425,766 (4,732,647) 0.22 (10,243) - --------------------------------------------------------------------------------------------------------------------------------- APRIL 6,425,075 2,204,991 (4,220,084) (0.06) 2,520 - --------------------------------------------------------------------------------------------------------------------------------- MAY 6,574,516 2,249,298 (4,325,218) (0.49) 21,100 - --------------------------------------------------------------------------------------------------------------------------------- JUNE 6,644,573 2,526,523 (4,118,050) 0.12 (4,945) - --------------------------------------------------------------------------------------------------------------------------------- JULY 6,889,513 2,504,376 (4,385,138) 0.42 (18,626) - --------------------------------------------------------------------------------------------------------------------------------- AUGUST 7,229,951 2,471,374 (4,758,577) 0.41 (19,387) - --------------------------------------------------------------------------------------------------------------------------------- SEPTEMBER 7,449,185 2,522,922 (4,926,263) 0.78 (38,251) - --------------------------------------------------------------------------------------------------------------------------------- OCTOBER 7,414,411 2,505,795 (4,908,616) 0.39 (19,128) - --------------------------------------------------------------------------------------------------------------------------------- NOVEMBER 7,512,548 3,290,602 (4,221,946) 0.71 (29,785) - --------------------------------------------------------------------------------------------------------------------------------- DECEMBER 7,850,262 3,104,608 (4,745,654) 0.41 (19,621) - --------------------------------------------------------------------------------------------------------------------------------- RESTATEMENT (7,857) - --------------------------------------------------------------------------------------------------------------------------------- CAPITALIZATION 0 - --------------------------------------------------------------------------------------------------------------------------------- FOREIGN CORPOPATION 38,963 - --------------------------------------------------------------------------------------------------------------------------------- OTHER (77,523) - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- TOTAL (194,931) - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------------------- OTHER CONCEPTS: - --------------------------------------------------------------------------------------------------------------------------------- CAPITALIZED RESULT FOR MONETARY POSITION 0 - ---------------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. DEBT INSTRUMENTS AUDITED CONSOLIDATED FINANCIAL LIMITED BASED IN ISSUED DEED AND/OR TITLE MEDIUM TERM NOTES A) Current assets to current liabilities must be 1.0 times or more. B) Total liabilities to total assets do not be more than 0.60. C) Operating income plus items added to income which do not require using cash must be 2.0 times or more. This notes was offered in the international market. ACTUAL SITUATION OF FINANCIAL LIMITED MEDIUM TERM NOTES A) Accomplished the actual situation is 5.05 times. B) Accomplished the actual situation is 0.24 C) Accomplished the actual situation is 111.18 As of December 31, 2007, the remaining balance of the MTNs not exchanged amounts to Ps. 3,282 ($302,000 dollars). C.P. Jose Flores Flores Chief Financial Officer BONDS AND/OR MEDIUM TERM NOTES CERTIFICATE MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS
AUDITED CONSOLIDATED - --------------------------------------------------------------------------------------------------------------------- PLANT OR CENTER ECONOMIC ACTIVITY PLANT CAPACITY UTILIZATION (%) - --------------------------------------------------------------------------------------------------------------------- GUADALAJARA MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS 480 87.63 - --------------------------------------------------------------------------------------------------------------------- MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS 250 80.88 - --------------------------------------------------------------------------------------------------------------------- INDUSTRIAS DEL ACERO Y DEL ALAMBRE SALE OF STEEL PRODUCTS 0 0 - --------------------------------------------------------------------------------------------------------------------- APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL PRODUCTS 460 97.19 - --------------------------------------------------------------------------------------------------------------------- CANTON CASTER FACILITY PRODUCTION OF BILLET 1,380 52.70 - --------------------------------------------------------------------------------------------------------------------- LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,150 85.60 - --------------------------------------------------------------------------------------------------------------------- LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 840 76.70 - --------------------------------------------------------------------------------------------------------------------- LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 600 82.60 - --------------------------------------------------------------------------------------------------------------------- MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 125 79.90 - --------------------------------------------------------------------------------------------------------------------- GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 70 51.40 - --------------------------------------------------------------------------------------------------------------------- ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 60 59.40 - ---------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. MAIN RAW MATERIALS
AUDITED CONSOLIDATED - ------------------------------------------------------------------------------------------------------------------------- DOMESTIC COST PRODUCTION (%) DOMESTIC MAIN SUPPLIERS FOREIGN MAIN SUPPLIERS SUBSTITUTION - ------------------------------------------------------------------------------------------------------------------------- PLANTS IN USA SCRAP VARIOUS NO 19.25 - ------------------------------------------------------------------------------------------------------------------------- SCRAP VARIOUS PLANTS IN MEXICO NO 50.78 - ------------------------------------------------------------------------------------------------------------------------- PLANTS IN USA COKE VARIOUS NO 11.82 - ------------------------------------------------------------------------------------------------------------------------- PLANTS IN USA PELLETS VARIOUS NO 9.81 - ------------------------------------------------------------------------------------------------------------------------- FERROALLOYS VARIOUS PLANTS IN MEXICO YES 7.61 - ------------------------------------------------------------------------------------------------------------------------- PLANTS IN USA FERROALLOYS VARIOUS NO 19.71 - ------------------------------------------------------------------------------------------------------------------------- ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 2.24 - ------------------------------------------------------------------------------------------------------------------------- PLANTS IN USA ELECTRODES VARIOUS NO 1.33 - -------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. SELLS DISTRIBUTION BY PRODUCT CONSOLIDATED
DOMESTIC SELLS AUDITED - ----------------------------------------------------------------------------------------------------------- MAIN PRODUCTS NET SALES MAIN DESTINATION - ----------------------------------------------------------------------------------------------------------- VOLUME AMOUNT TRADEMARKS COSTUMERS - ----------------------------------------------------------------------------------------------------------- STRUCTURAL PROFILES 188 1,528,851 - ----------------------------------------------------------------------------------------------------------- COMMERCIAL PROFILES 81 618,226 - ----------------------------------------------------------------------------------------------------------- REBAR 168 1,155,065 - ----------------------------------------------------------------------------------------------------------- FLAT BAR 162 1,285,627 - ----------------------------------------------------------------------------------------------------------- STEEL BARS 299 2,417,309 - ----------------------------------------------------------------------------------------------------------- OTHER 2 57,797 - ----------------------------------------------------------------------------------------------------------- BILLET 3 12,392 - ----------------------------------------------------------------------------------------------------------- HOT-ROLLED BARS - ----------------------------------------------------------------------------------------------------------- COLD-FINISHED BARS - ----------------------------------------------------------------------------------------------------------- SEMI-FINISHED SEAMLESS TUBE ROUNDS - ----------------------------------------------------------------------------------------------------------- OTHER SEMI-FINISHED TRADE PRODUCTS - ----------------------------------------------------------------------------------------------------------- T O T A L 7,075,267 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- FOREIGN SALES 17,030,827 - ----------------------------------------------------------------------------------------------------------- TOTAL 24,106,094 - -----------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. SELLS DISTRIBUTION BY PRODUCT CONSOLIDATED
FOREIGN SELLS AUDITED - --------------------------------------------------------------------------------------------------------------- MAIN PRODUCTS NET SELLS MAIN - --------------------------------------------------------------------------------------------------------------- VOLUME AMOUNT TRADEMARKS COSTUMERS - --------------------------------------------------------------------------------------------------------------- EXPORTS - --------------------------------------------------------------------------------------------------------------- STRUCTURAL PROFILES 28 223,417 - --------------------------------------------------------------------------------------------------------------- COMMERCIAL PROFILES 26 199,355 - --------------------------------------------------------------------------------------------------------------- REBAR 82 547,494 - --------------------------------------------------------------------------------------------------------------- STEEL BARS 36 298,349 - --------------------------------------------------------------------------------------------------------------- FLAT BAR 7 58,956 - --------------------------------------------------------------------------------------------------------------- BILLET 0 0 - --------------------------------------------------------------------------------------------------------------- FOREIGN SUBSIDIARIES - --------------------------------------------------------------------------------------------------------------- HOT-ROLLED BARS 920 9,577,814 - --------------------------------------------------------------------------------------------------------------- COLD-FINISHED BARS 149 2,101,196 - --------------------------------------------------------------------------------------------------------------- SEMI-FINISHED SEAMLESS TUBE ROUNDS 216 1,642,198 - --------------------------------------------------------------------------------------------------------------- OTHER SEMI-FINISHED TRADE PRODUCTS 326 2,382,048 - --------------------------------------------------------------------------------------------------------------- T O T A L 17,030,827 - ---------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK CHARACTERISTICS OF THE SHARES
AUDITED - --------------------------------------------------------------------------------------------------------------------------- SERIES NOMINAL VALID NUMBER OF SHARES CAPITAL STOCK VALUE CUPON (Thousands of Pesos) - --------------------------------------------------------------------------------------------------------------------------- FIXED PORTION VARIABLE FREE SUSCRIPTION PORTION MEXICAN FIXED VARIABLE - -------------------------------------------------------------------------------------------------------------------------- B 90,850,050 383,771,561 0 474,621,611 441,786 1,866,175 - -------------------------------------------------------------------------------------------------------------------------- TOTAL 90,850,050 383,771,561 0 474,621,611 441,786 1,866,175 - --------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION: 474,621,611 - -------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. CONSTRUCTION IN PROGRESS CONSOLIDATED AUDITED THE PROJECTS IN PROGRESS AT DECEMBER 31, 2007, ARE: PROJECTS IN PROGRESS TOTAL INVESTMENT PROJECTS IN REPUBLIC 86,521 PROJECTS IN MEXICALI 88,236 PROJECTS IN TLAXCALA 4,193 PROJECTS IN GUADALAJARA 14,555 TOTAL INVESTMENT AT DECEMBER 31, 2007 193,505 ======= MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. INFORMATION RELATED TO BULLETIN B-15 (FOREIGN CURRENCY TRANSLATION) CONSOLIDATED Foreign currency transactions and exchange differences - All transactions in foreign currency are recorded at the exchange rates prevailing on the date of their execution or liquidation. Foreign currency denominated assets and liabilities are translated at the exchange rates prevailing at the balance sheet date. Any exchange differences incurred with regard to assets or liabilities denominated in foreign currency are charged to operations of the period and are included in financial income (expense) in the accompanying consolidated statements of income (loss). The financial statements of foreign subsidiaries are translated into Mexican pesos in conformity with Bulletin B-15 "Transactions in Foreign Currency and Translation of Financial Statements of Foreign Operations". Pacific Steel and Undershaft investments are considered to be "integrated foreign operations", as defined in Bulletin B-15, and accordingly such financial statements were translated as follows: - - Monetary items at the exchange rate at the balance sheet date. - - Non-monetary items and stockholders' equity at the exchange rate prevailing at the date the transactions occurred. - - Income and expense items at an appropriate average exchange rate. - - The resulting foreign currency translation differences are included in the financial income (expense) in the statement of income (loss). - - All resulting Mexican peso amounts are restated for the effects of inflation in accordance with the dispositions of Bulletin B-10 using the NCPI, where such effects are considered significant. SimRep and subsidiaries are considered to be "foreign operations", as defined in Bulletin B-15, and accordingly such financial statements were translated as follows: - - Monetary and non-monetary items at the exchange rate at the balance sheet date. - - Income and expense items at the exchange rate at the balance sheet date. - - The resulting foreign currency translation differences are included in the stockholders' equity. - - All resulting Mexican peso amounts are restated for the effects of inflation in accordance with the dispositions of Bulletin B-10 using the NCPI, where such effects are considered significant. MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER:4 YEAR: 2007 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED DECLARATION OF THE COMPANY OFFICIALS RESPONSIBLE FOR THE INFORMATION CONTAINED IN THIS REPORT. LUIS GARCIA LIMON AND JOSE FLORES FLORES CERTIFY THAT BASED ON OUR KNOWLEDGE, THIS REPORT DOES NOT CONTAIN ANY UNTRUE STATEMENT OF A MATERIAL FACT OR OMIT TO STATE A MATERIAL FACT NECESSARY TO MAKE THE STATEMENTS MADE HEREIN, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH SUCH STATEMENTS WERE MADE, NOT MISLEADING WITH RESPECT TO THE PERIOD COVERED BY THIS FOURTH QUARTER REPORT. ING LUIS GARCIA LIMON C.P. JOSE FLORES FLORES CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER GUADALAJARA, JAL, AT MAY 5 OF 2008. -----END PRIVACY-ENHANCED MESSAGE-----