-----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, L7XDC550zuRr39sO7buqjHGFpI0fakWNy+VIrIx7C76t4SgU0OhJKQbMQM5t7KPK 3TYqMD/wkxF2rTzFpIWMkQ== 0000891092-09-001866.txt : 20090506 0000891092-09-001866.hdr.sgml : 20090506 20090506131359 ACCESSION NUMBER: 0000891092-09-001866 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20090531 FILED AS OF DATE: 20090506 DATE AS OF CHANGE: 20090506 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: 09800571 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 e35311-6k.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, 2009. 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 6, 2009. 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: 2008 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED FINANCIAL STATEMENT AT DECEMBER 31 OF 2008 AND 2007 (thousands of Mexican pesos) AUDITED
- -------------------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR S - -------------------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - -------------------------------------------------------------------------------------------------------------------------- s01 TOTAL ASSETS 30,814,017 100 22,841,257 100 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s02 CURRENT ASSETS 13,045,429 42 14,453,755 63 - -------------------------------------------------------------------------------------------------------------------------- s03 CASH AND SHORT-TERM INVESTMENTS 576,741 2 6,396,155 28 - -------------------------------------------------------------------------------------------------------------------------- s04 ACCOUNTS AND NOTES RECEIVABLE (NET) 2,855,472 9 2,481,189 11 - -------------------------------------------------------------------------------------------------------------------------- s05 OTHER ACCOUNTS AND NOTES RECEIVABLE 504,818 2 574,002 3 - -------------------------------------------------------------------------------------------------------------------------- s06 INVENTORIES 8,849,906 29 4,930,404 22 - -------------------------------------------------------------------------------------------------------------------------- s07 OTHER CURRENT ASSETS 258,492 1 72,005 0 - -------------------------------------------------------------------------------------------------------------------------- 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) 10,291,145 33 7,900,638 35 - -------------------------------------------------------------------------------------------------------------------------- s13 LAND AND BUILDINGS 3,731,695 12 2,619,597 11 - -------------------------------------------------------------------------------------------------------------------------- s14 MACHINERY AND INDUSTRIAL EQUIPMENT 12,790,306 42 8,992,073 39 - -------------------------------------------------------------------------------------------------------------------------- s15 OTHER EQUIPMENT 230,015 1 109,237 0 - -------------------------------------------------------------------------------------------------------------------------- s16 ACCUMULATED DEPRECIATION 6,847,468 22 4,016,312 18 - -------------------------------------------------------------------------------------------------------------------------- s17 CONSTRUCTION IN PROGRESS 386,597 1 196,043 1 - -------------------------------------------------------------------------------------------------------------------------- s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 7,351,774 24 384,346 2 - -------------------------------------------------------------------------------------------------------------------------- s19 OTHER ASSETS 125,669 0 102,518 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s20 TOTAL LIABILITIES 9,508,520 100 5,589,223 100 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s21 CURRENT LIABILITIES 5,255,145 55 2,860,124 51 - -------------------------------------------------------------------------------------------------------------------------- s22 SUPPLIERS 3,399,772 36 2,104,235 38 - -------------------------------------------------------------------------------------------------------------------------- s23 BANK LOANS 8,800 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s24 STOCK MARKET LOANS 4,055 0 3,282 0 - -------------------------------------------------------------------------------------------------------------------------- s103 OTHER LOANS WITH COST 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s25 TAXES PAYABLE 298,251 3 72,551 1 - -------------------------------------------------------------------------------------------------------------------------- s26 OTHER CURRENT LIABILITIES WITHOUT COST 1,544,267 16 680,056 12 - -------------------------------------------------------------------------------------------------------------------------- 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 4,253,375 45 2,729,099 49 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s33 CONSOLIDATED STOCKHOLDERS' EQUITY 21,305,497 100 17,252,034 100 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s34 MINORITY INTEREST 3,122,342 15 2,390,179 14 - -------------------------------------------------------------------------------------------------------------------------- s35 MAJORITY INTEREST 18,183,155 85 14,861,855 86 - -------------------------------------------------------------------------------------------------------------------------- s36 CONTRIBUTED CAPITAL 8,350,900 39 7,181,744 42 - -------------------------------------------------------------------------------------------------------------------------- S79 CAPITAL STOCK 4,142,696 19 4,030,427 23 - -------------------------------------------------------------------------------------------------------------------------- s39 PREMIUM ON ISSUANCE OF SHARES 4,208,204 20 3,151,317 18 - -------------------------------------------------------------------------------------------------------------------------- s40 CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s41 EARNED CAPITAL 9,832,255 46 7,680,111 45 - -------------------------------------------------------------------------------------------------------------------------- s42 RETAINED EARNINGS AND CAPITAL RESERVES 9,507,958 45 8,550,179 50 - -------------------------------------------------------------------------------------------------------------------------- s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 324,297 2 (870,068) (5) - -------------------------------------------------------------------------------------------------------------------------- s80 SHARES REPURCHASED 0 0 0 0 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 576,741 100 6,396,155 100 - -------------------------------------------------------------------------------------------------------------------------- s46 CASH 234,679 41 301,766 5 - -------------------------------------------------------------------------------------------------------------------------- s47 SHORT-TERM INVESTMENTS 342,062 59 6,094,389 95 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s07 OTHER CURRENT ASSETS 258,492 100 72,005 100 - -------------------------------------------------------------------------------------------------------------------------- s81 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s82 DISCONTINUED OPERATIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s83 OTHER 258,492 100 72,005 100 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s18 OTHER INTANGIBLE ASSETS AND DEFERRED ASSETS (NET) 7,351,774 100 384,346 100 - -------------------------------------------------------------------------------------------------------------------------- s48 DEFERRED EXPENSES 3,099,182 42 332,737 87 - -------------------------------------------------------------------------------------------------------------------------- s49 GOODWILL 4,166,160 57 36,258 9 - -------------------------------------------------------------------------------------------------------------------------- s51 OTHER 86,432 1 15,351 4 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s19 OTHER ASSETS 125,669 100 102,518 100 - -------------------------------------------------------------------------------------------------------------------------- s84 INTANGIBLE ASSET FROM LABOR OBLIGATIONS 3,446 3 5,059 5 - -------------------------------------------------------------------------------------------------------------------------- s85 DERIVATIVE FINANCIAL INSTRUMENTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s50 DEFERRED TAXES 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s86 DISCONTINUED OPERATIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s87 OTHER 122,223 97 97,459 95 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s21 CURRENT LIABILITIES 5,255,145 100 2,860,124 100 - -------------------------------------------------------------------------------------------------------------------------- s52 FOREIGN CURRENCY LIABILITIES 3,766,787 72 2,348,357 82 - -------------------------------------------------------------------------------------------------------------------------- s53 MEXICAN PESOS LIABILITIES 1,488,358 28 511,767 18 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s26 OTHER CURRENT LIABILITIES WITHOUT COST 1,544,267 100 680,056 100 - -------------------------------------------------------------------------------------------------------------------------- s88 DERIVATIVE FINANCIAL INSTRUMENTS 376,206 24 0 0 - -------------------------------------------------------------------------------------------------------------------------- s89 INTEREST LIABILITIES 5,251 0 3,952 1 - -------------------------------------------------------------------------------------------------------------------------- s68 PROVISIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s90 DISCONTINUED OPERATIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s58 OTHER CURRENT LIABILITIES 1,162,810 75 676,104 99 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- 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 4,253,375 100 2,729,099 100 - -------------------------------------------------------------------------------------------------------------------------- s66 DEFERRED TAXES 4,172,251 98 2,672,480 98 - -------------------------------------------------------------------------------------------------------------------------- s91 OTHER LIABILITIES IN RESPECT OF SOCIAL INSURANCE 34,095 1 18,422 1 - -------------------------------------------------------------------------------------------------------------------------- s92 DISCONTINUED OPERATIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s69 OTHER LIABILITIES 47,029 1 38,197 1 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s79 CAPITAL STOCK 4,142,696 100 4,030,427 100 - -------------------------------------------------------------------------------------------------------------------------- s37 CAPITAL STOCK (NOMINAL) 2,420,230 58 2,307,961 57 - -------------------------------------------------------------------------------------------------------------------------- s69 RESTATEMENT OF CAPITAL STOCK 1,722,466 42 1,722,466 43 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 9,507,958 100 8,550,179 100 - -------------------------------------------------------------------------------------------------------------------------- s93 LEGAL RESERVE 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s43 RESERVE FOR REPURCHASE OF SHARES 200,612 2 200,612 2 - -------------------------------------------------------------------------------------------------------------------------- s94 OTHER RESERVES 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s95 RETAINED EARNINGS 7,511,209 79 6,820,510 80 - -------------------------------------------------------------------------------------------------------------------------- s45 NET INCOME FOR THE YEAR 1,796,137 19 1,529,057 18 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- s44 OTHER ACCUMULATED COMPREHENSIVE RESULT 324,297 100 (870,068) 100 - -------------------------------------------------------------------------------------------------------------------------- s70 ACCUMULATED MONETARY RESULT 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- s71 RESULT FROM HOLDING NON-MONETARY ASSETS 0 0 132,155 (15) - -------------------------------------------------------------------------------------------------------------------------- s96 CUMULATIVE RESULT FROM FOREIGN CURRENCY TRANSLATION 595,165 184 (31,710) 4 - -------------------------------------------------------------------------------------------------------------------------- s97 CUMULATIVE RESULT FROM DERIVATIVE FINANCIAL INSTRUMENTS (270,868) (84) 0 0 - -------------------------------------------------------------------------------------------------------------------------- s98 CUMULATIVE EFFECT OF DEFERRED INCOME TAXES 0 (970,513) 112 - -------------------------------------------------------------------------------------------------------------------------- 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: 2008 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 7,790,284 11,593,631 - --------------------------------------------------------------------------------------------------------------------------- S73 PENSIONS FUND AND SENIORITY PREMIUMS 0 0 - --------------------------------------------------------------------------------------------------------------------------- S74 EXECUTIVES (*) 60 51 - --------------------------------------------------------------------------------------------------------------------------- S75 EMPLOYERS (*) 1,890 1,190 - --------------------------------------------------------------------------------------------------------------------------- S76 WORKERS (*) 2,873 3,196 - --------------------------------------------------------------------------------------------------------------------------- S77 COMMON SHARES (*) 497,709,214 474,621,611 - --------------------------------------------------------------------------------------------------------------------------- S78 REPURCHASED SHARES (*) 0 0 - --------------------------------------------------------------------------------------------------------------------------- S101 RESTRICTED CASH 0 0 - --------------------------------------------------------------------------------------------------------------------------- S102 NET DEBT OF NON CONSOLIDATED COMPANIES 270,766 0 - ---------------------------------------------------------------------------------------------------------------------------
(*) THESE ITEMS SHOULD BE EXPRESSED IN UNITS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF INCOME FROM JANUARY 1 TO DECEMBER 31 OF 2008 AND 2007 (thousands of Mexican pesos) AUDITED
- -------------------------------------------------------------------------------------------------------------------------- REF CATEGORIES CURRENT YEAR PREVIOUS YEAR R - -------------------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - -------------------------------------------------------------------------------------------------------------------------- r01 NET SALES 35,185,220 100 24,106,094 100 - -------------------------------------------------------------------------------------------------------------------------- r02 COST OF SALES 29,796,163 85 20,498,918 85 - -------------------------------------------------------------------------------------------------------------------------- r03 GROSS PROFIT 5,389,057 15 3,607,176 15 - -------------------------------------------------------------------------------------------------------------------------- r04 OPERATING EXPENSES 2,273,828 6 1,423,159 6 - -------------------------------------------------------------------------------------------------------------------------- r05 OPERATING INCOME 3,115,229 9 2,184,017 9 - -------------------------------------------------------------------------------------------------------------------------- r08 OTHER INCOME AND (EXPENSE), NET (3,916) 0 21,329 0 - -------------------------------------------------------------------------------------------------------------------------- r06 COMPREHENSIVE FINANCING RESULT (174,661) 0 40,503 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 2,936,652 8 2,245,849 9 - -------------------------------------------------------------------------------------------------------------------------- r10 INCOME TAXES 1,036,303 3 620,674 3 - -------------------------------------------------------------------------------------------------------------------------- r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS 1,900,349 5 1,625,175 7 - -------------------------------------------------------------------------------------------------------------------------- r14 DISCONTINUED OPERATIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- r18 NET CONSOLIDATED INCOME 1,900,349 5 1,625,175 7 - -------------------------------------------------------------------------------------------------------------------------- r19 NET INCOME OF MINORITY INTEREST 104,212 0 96,118 0 - -------------------------------------------------------------------------------------------------------------------------- r20 NET INCOME OF MAJORITY INTEREST 1,796,137 5 1,529,057 6 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 35,185,220 100 24,106,094 100 - -------------------------------------------------------------------------------------------------------------------------- r21 DOMESTIC 10,713,674 30 7,075,267 29 - -------------------------------------------------------------------------------------------------------------------------- r22 FOREIGN 24,471,546 70 17,030,827 71 - -------------------------------------------------------------------------------------------------------------------------- r23 TRANSLATED INTO DOLLARS (***) 2,198,590 1,564,695 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- r08 OTHER INCOME AND (EXPENSE), NET (3,916) 100 21,329 100 - -------------------------------------------------------------------------------------------------------------------------- r49 OTHER INCOME AND (EXPENSE), NET 20,025 (511) 21,329 100 - -------------------------------------------------------------------------------------------------------------------------- r34 EMPLOYEES' PROFIT SHARING EXPENSES 23,941 611 0 0 - -------------------------------------------------------------------------------------------------------------------------- r35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- r06 COMPREHENSIVE FINANCING RESULT (174,661) 100 40,503 100 - -------------------------------------------------------------------------------------------------------------------------- r24 INTEREST EXPENSE 57,288 (33) 24,585 61 - -------------------------------------------------------------------------------------------------------------------------- r42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- r45 OTHER FINANCE COSTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- r26 INTEREST INCOME 135,810 (78) 297,898 735 - -------------------------------------------------------------------------------------------------------------------------- r46 OTHER FINANCIAL PRODUCTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- r25 FOREIGN EXCHANGE GAIN (LOSS), NET (253,183) 145 (37,879) (94) - -------------------------------------------------------------------------------------------------------------------------- r28 RESULT FROM MONETARY POSITION 0 0 (194,931) (481) - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- r10 INCOME TAXES 1,036,303 100 620,674 100 - -------------------------------------------------------------------------------------------------------------------------- r32 INCOME TAX 743,255 72 111,522 18 - -------------------------------------------------------------------------------------------------------------------------- r33 DEFERRED INCOME TAX 293,048 28 509,152 82 - --------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 35,618,819 24,593,431 - ---------------------------------------------------------------------------------------------------------------------------- r37 TAX RESULT FOR THE YEAR 0 0 - ---------------------------------------------------------------------------------------------------------------------------- r38 NET SALES (**) 35,185,220 24,106,094 - ---------------------------------------------------------------------------------------------------------------------------- r39 OPERATION INCOME (**) 3,143,385 2,184,017 - ---------------------------------------------------------------------------------------------------------------------------- r40 NET INCOME OF MAJORITY INTEREST (**) 1,796,137 1,529,057 - ---------------------------------------------------------------------------------------------------------------------------- r41 NET CONSOLIDATED INCOME (**) 1,900,349 1,625,175 - ---------------------------------------------------------------------------------------------------------------------------- r47 OPERATIVE DEPRECIATION AND AMORTIZATION 867,150 549,256 - ----------------------------------------------------------------------------------------------------------------------------
(**) RESTATED INFORMATION FOR THE LAST TWELVE MONTHS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. QUARTERLY STATEMENTS OF INCOME FROM OCTOBER 1 TO DECEMBER 31 OF 2008 AND 2007 (thousands of Mexican pesos) AUDITED
- -------------------------------------------------------------------------------------------------------------------------- REF CATEGORIES CURRENT YEAR PREVIOUS YEAR R - -------------------------------------------------------------------------------------------------------------------------- AMOUNT % AMOUNT % - -------------------------------------------------------------------------------------------------------------------------- r01 NET SALES 7,617,888 100 5,824,351 100 - -------------------------------------------------------------------------------------------------------------------------- r02 COST OF SALES 7,326,696 96 5,435,842 93 - -------------------------------------------------------------------------------------------------------------------------- r03 GROSS PROFIT 291,192 4 388,509 7 - -------------------------------------------------------------------------------------------------------------------------- r04 OPERATING EXPENSES 916,294 12 352,024 6 - -------------------------------------------------------------------------------------------------------------------------- r05 OPERATING INCOME (625,102) (8) 36,485 1 - -------------------------------------------------------------------------------------------------------------------------- r08 OTHER INCOME AND (EXPENSE), NET (56,867) 0 (24,331) 0 - -------------------------------------------------------------------------------------------------------------------------- r06 COMPREHENSIVE FINANCING RESULT 58,853 1 (167,318) (3) - -------------------------------------------------------------------------------------------------------------------------- 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 (623,116) (8) (155,164) (3) - -------------------------------------------------------------------------------------------------------------------------- r10 INCOME TAXES (172,312) (2) (119,559) (2) - -------------------------------------------------------------------------------------------------------------------------- r11 INCOME (LOSS) BEFORE DISCONTINUED OPERATIONS (450,804) (6) (35,605) 0 - -------------------------------------------------------------------------------------------------------------------------- r14 DISCONTINUED OPERATIONS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- r18 NET CONSOLIDATED INCOME (450,804) (6) (35,605) 0 - -------------------------------------------------------------------------------------------------------------------------- r19 NET INCOME OF MINORITY INTEREST (506,206) (7) (140,009) (2) - -------------------------------------------------------------------------------------------------------------------------- r20 NET INCOME OF MAJORITY INTEREST 55,402 1 104,404 2 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 7,617,888 100 5,824,351 100 - -------------------------------------------------------------------------------------------------------------------------- rt21 DOMESTIC 2,635,143 35 1,559,961 27 - -------------------------------------------------------------------------------------------------------------------------- rt22 FOREIGN 4,982,745 65 4,264,390 73 - -------------------------------------------------------------------------------------------------------------------------- rt23 TRANSLATED INTO DOLLARS (***) 338,726 420,709 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- rt08 OTHER INCOME AND (EXPENSE), NET (56,867) 100 (24,331) 100 - -------------------------------------------------------------------------------------------------------------------------- rt49 OTHER INCOME AND (EXPENSE), NET (41,616) 73 (24,331) 100 - -------------------------------------------------------------------------------------------------------------------------- rt34 EMPLOYEES' PROFIT SHARING EXPENSES 15,251 27 0 0 - -------------------------------------------------------------------------------------------------------------------------- rt35 DEFERRED EMPLOYEES' PROFIT SHARING 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- rt06 COMPREHENSIVE FINANCING RESULT 58,853 100 (167,318) 100 - -------------------------------------------------------------------------------------------------------------------------- rt24 INTEREST EXPENSE 28,070 48 5,120 -3 - -------------------------------------------------------------------------------------------------------------------------- rt42 GAIN (LOSS) ON RESTATEMENT OF UDI'S 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- rt45 OTHER FINANCE COSTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- rt26 INTEREST INCOME 25,685 44 60,589 -36 - -------------------------------------------------------------------------------------------------------------------------- rt46 OTHER FINANCIAL PRODUCTS 0 0 0 0 - -------------------------------------------------------------------------------------------------------------------------- rt25 FOREIGN EXCHANGE GAIN (LOSS), NET 61,238 104 (35,465) 21 - -------------------------------------------------------------------------------------------------------------------------- rt28 RESULT FROM MONETARY POSITION 0 0 (187,322) 112 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- rt10 INCOME TAXES (172,312) 100 (119,559) 100 - -------------------------------------------------------------------------------------------------------------------------- rt32 INCOME TAX 305,519 (177) (158,241) 132 - -------------------------------------------------------------------------------------------------------------------------- rt33 DEFERRED INCOME TAX (477,831) 277 38,682 (32) - --------------------------------------------------------------------------------------------------------------------------
(***) THOUSANDS OF DOLLARS MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 465,209 169,880 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. STATEMENTS OF CHANGES IN FINANCIAL POSITION FROM JANUARY 1 TO DECEMBER 31 OF 2008 AND 2007 (thousands of pesos) AUDITED
- -------------------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR C - -------------------------------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - -------------------------------------------------------------------------------------------------------------------------- c01 CONSOLIDATED NET INCOME 1,900,349 1,625,175 - -------------------------------------------------------------------------------------------------------------------------- c02 + (-) ITEMS ADDED TO INCOME WHICH DO NOT REQUIRE CASH 1,292,538 1,062,983 - -------------------------------------------------------------------------------------------------------------------------- c03 RESOURCES FROM NET INCOME FOR THE YEAR 3,192,887 2,688,158 - -------------------------------------------------------------------------------------------------------------------------- c04 RESOURCES PROVIDED OR USED IN OPERATION (1,252,433) (304,274) - -------------------------------------------------------------------------------------------------------------------------- c05 RESOURCES PROVIDED BY (USED FOR) OPERATING ACTIVITIES 1,940,454 2,383,884 - -------------------------------------------------------------------------------------------------------------------------- c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES 205,605 (128,292) - -------------------------------------------------------------------------------------------------------------------------- c07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES 1,169,155 2,420,726 - -------------------------------------------------------------------------------------------------------------------------- c08 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES 1,374,760 2,292,434 - -------------------------------------------------------------------------------------------------------------------------- c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (9,134,628) (484,181) - -------------------------------------------------------------------------------------------------------------------------- c10 NET INCREASE (DECREASE) IN CASH AND SHORT-TERM INVESTMENTS (5,819,414) 4,192,137 - -------------------------------------------------------------------------------------------------------------------------- c11 CASH AND SHORT-TERM INVESTMENTS AT THE BEGINNING OF PERIOD 6,396,155 2,204,018 - -------------------------------------------------------------------------------------------------------------------------- c12 CASH AND SHORT TERM INVESTMENTS AT THE END OF PERIOD 576,741 6,396,155 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 1,292,538 1,062,983 - -------------------------------------------------------------------------------------------------------------------------- c13 DEPRECIATION AND AMORTIZATION FOR THE YEAR 895,306 549,256 - -------------------------------------------------------------------------------------------------------------------------- c41 + (-) OTHER ITEMS 397,232 513,727 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- c04 RESOURCES PROVIDED OR USED IN OPERATION (1,252,433) (304,274) - -------------------------------------------------------------------------------------------------------------------------- c18 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 290,082 (237,795) - -------------------------------------------------------------------------------------------------------------------------- c19 + (-) DECREASE (INCREASE) IN INVENTORIES (2,030,274) 123,835 - -------------------------------------------------------------------------------------------------------------------------- c20 + (-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE (251,920) (274,808) - -------------------------------------------------------------------------------------------------------------------------- c21 + (-) INCREASE (DECREASE) IN SUPPLIERS 541,938 255,378 - -------------------------------------------------------------------------------------------------------------------------- c22 + (-) INCREASE (DECREASE) IN OTHER LIABILITIES 197,741 (170,884) - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- c06 RESOURCES PROVIDED BY (USED FOR) EXTERNAL FINANCING ACTIVITIES 205,605 (128,292) - -------------------------------------------------------------------------------------------------------------------------- c23 + BANK FINANCING 1,334,129 0 - -------------------------------------------------------------------------------------------------------------------------- c24 + STOCK MARKET FINANCING 0 (124) - -------------------------------------------------------------------------------------------------------------------------- c25 + DIVIDEND RECEIVED 0 0 - -------------------------------------------------------------------------------------------------------------------------- c26 OTHER FINANCING 232,943 0 - -------------------------------------------------------------------------------------------------------------------------- c27 BANK FINANCING AMORTIZATION (1,325,329) 0 - -------------------------------------------------------------------------------------------------------------------------- c28 (-) STOCK MARKET FINANCING AMORTIZATION 0 0 - -------------------------------------------------------------------------------------------------------------------------- c29 (-) OTHER FINANCING AMORTIZATION (36,138) (128,168) - -------------------------------------------------------------------------------------------------------------------------- c42 + (-) OTHER ITEMS 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- C07 RESOURCES PROVIDED BY (USED FOR) INTERNAL FINANCING ACTIVITIES 1,169,155 2,420,726 - -------------------------------------------------------------------------------------------------------------------------- c30 + (-) INCREASE (DECREASE) IN CAPITAL STOCK 112,269 267,015 - -------------------------------------------------------------------------------------------------------------------------- c31 (-) DIVIDENDS PAID 0 0 - -------------------------------------------------------------------------------------------------------------------------- c32 + PREMIUM ON ISSUANCE OF SHARES 1,056,886 2,153,711 - -------------------------------------------------------------------------------------------------------------------------- c33 + CONTRIBUTION FOR FUTURE CAPITAL INCREASES 0 0 - -------------------------------------------------------------------------------------------------------------------------- c43 + (-) OTHER ITEMS 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- c09 RESOURCES PROVIDED BY (USED FOR) INVESTMENT ACTIVITIES (9,134,628) (484,181) - -------------------------------------------------------------------------------------------------------------------------- c34 + (-) DECREASE (INCREASE) IN PERMANENT INVESTMENTS (8,450,796) 0 - -------------------------------------------------------------------------------------------------------------------------- c35 (-) ACQUISITION OF PROPERTY, PLANT AND EQUIPMENT (479,804) (485,668) - -------------------------------------------------------------------------------------------------------------------------- c36 (-) INCREASE IN CONSTRUCTION PROGRESS 0 0 - -------------------------------------------------------------------------------------------------------------------------- c37 + SALE OF OTHER PERMANENT INVESTMENTS 0 0 - -------------------------------------------------------------------------------------------------------------------------- c38 + SALE OF TANGIBLE FIXED ASSETS 4,769 0 - -------------------------------------------------------------------------------------------------------------------------- c39 + (-) OTHER ITEMS (208,797) 1,487 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. STATE OF CASH FLOW (INDIRECT METHOD) FROM JANUARY 1 TO DECEMBER 31 OF 2008 AND 2007 (thousands of pesos) AUDITED
- -------------------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR C - -------------------------------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - -------------------------------------------------------------------------------------------------------------------------- ACTIVITIES OF OPERATION - -------------------------------------------------------------------------------------------------------------------------- e01 INCOME (LOSS) BEFORE INCOME TAXES 2,936,652 2,245,849 - -------------------------------------------------------------------------------------------------------------------------- e02 + (-) ITEMS NOT REQUIRING CASH 126,084 0 - -------------------------------------------------------------------------------------------------------------------------- e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 759,496 207,925 - -------------------------------------------------------------------------------------------------------------------------- e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 57,288 24,585 - -------------------------------------------------------------------------------------------------------------------------- e05 CASH FLOW BEFORE INCOME TAX 3,879,520 2,478,359 - -------------------------------------------------------------------------------------------------------------------------- e06 CASH FLOW PROVIDED OR USED IN OPERATION (2,034,270) (479,260) - -------------------------------------------------------------------------------------------------------------------------- e07 CASH FLOW PROVIDED OF OPERATING ACTIVITIES 1,845,250 1,999,099 - -------------------------------------------------------------------------------------------------------------------------- INVESTMENT ACTIVITIES - -------------------------------------------------------------------------------------------------------------------------- e08 NET CASH FLOW FROM INVESTING ACTIVITIES (9,000,056) (198,309) - -------------------------------------------------------------------------------------------------------------------------- e09 CASH FLOW AFTER INVESTING ACTIVITIES (7,154,806) 1,800,790 - -------------------------------------------------------------------------------------------------------------------------- FINANCING ACTIVITIES - -------------------------------------------------------------------------------------------------------------------------- e10 NET CASH FROM FINANCING ACTIVITIES 1,334,154 2,397,504 - -------------------------------------------------------------------------------------------------------------------------- e11 NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (5,820,652) 4,198,294 - -------------------------------------------------------------------------------------------------------------------------- e12 TRANSLATION DIFFERENCES IN CASH AND CASH EQUIVALENTS 1,238 (6,171) - -------------------------------------------------------------------------------------------------------------------------- e13 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD 6,396,155 2,204,032 - -------------------------------------------------------------------------------------------------------------------------- e14 CASH AND CASH EQUIVALENTS AT THE END OF PERIOD 576,741 6,396,155 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. STATE OF CASH FLOW (INDIRECT METHOD) BREAKDOWN OF MAIN CONCEPTS (thousands of pesos) AUDITED
- -------------------------------------------------------------------------------------------------------------------------- REF CONCEPTS CURRENT YEAR PREVIOUS YEAR C - -------------------------------------------------------------------------------------------------------------------------- AMOUNT AMOUNT - -------------------------------------------------------------------------------------------------------------------------- e02 + (-) ITEMS NOT REQUIRING CASH 126,084 0 - -------------------------------------------------------------------------------------------------------------------------- e15 + ESTIMATES FOR THE PERIOD 0 0 - -------------------------------------------------------------------------------------------------------------------------- e16 + PROVISIONS FOR THE PERIOD 0 0 - -------------------------------------------------------------------------------------------------------------------------- e17 + (-) OTHER UNREALIZED ITEMS 126,084 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- e03 + (-) ITEMS RELATED TO INVESTING ACTIVITIES 759,496 207,925 - -------------------------------------------------------------------------------------------------------------------------- e18 + DEPRECIATION AND AMORTIZATION FOR THE PERIOD 895,306 505,823 - -------------------------------------------------------------------------------------------------------------------------- e19 (-) + GAIN OR LOSS ON SALE PROPERTY, PLANT AND EQUIPMENT 0 0 - -------------------------------------------------------------------------------------------------------------------------- e20 + IMPAIRMENT LOSS 0 0 - -------------------------------------------------------------------------------------------------------------------------- e21 (-) + EQUITY IN RESULTS OF ASSOCIATES AND JOINT VENTURES 0 0 - -------------------------------------------------------------------------------------------------------------------------- e22 (-) DIVIDENDS RECEIVED 0 0 - -------------------------------------------------------------------------------------------------------------------------- e23 (-) INTEREST INCOME (135,810) (297,898) - -------------------------------------------------------------------------------------------------------------------------- e24 (-) + OTHER ITEMS 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- e04 + (-) ITEMS RELATED TO FINANCING ACTIVITIES 57,288 24,585 - -------------------------------------------------------------------------------------------------------------------------- e25 + ACCRUED INTEREST 57,288 24,585 - -------------------------------------------------------------------------------------------------------------------------- e26 + (-) OTHER ITEMS 0 0 - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- e06 CASH FLOW PROVIDED OR USED IN OPERATION (2,034,270) (479,260) - -------------------------------------------------------------------------------------------------------------------------- e27 + (-) DECREASE (INCREASE) IN ACCOUNTS RECEIVABLE 290,082 (237,795) - -------------------------------------------------------------------------------------------------------------------------- e28 + (-) DECREASE (INCREASE) IN INVENTORIES (2,030,274) 123,835 - -------------------------------------------------------------------------------------------------------------------------- e29 + (-)DECREASE (INCREASE) IN OTHER ACCOUNT RECEIVABLES (251,920) (274,808) - -------------------------------------------------------------------------------------------------------------------------- e30 + (-) INCREASE DECREASE IN SUPPLIERS 541,938 255,378 - -------------------------------------------------------------------------------------------------------------------------- e31 + (-)INCREASE DECREASE IN OTHER LIABILITIES 111,756 (170,884) - -------------------------------------------------------------------------------------------------------------------------- e32 + (-) INCOME TAXES PAID OR RETURNED (695,852) (174,986) - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- e08 NET CASH FLOW FROM INVESTING ACTIVITIES (9,000,056) (198,309) - -------------------------------------------------------------------------------------------------------------------------- e33 (-) PERMANENT INVESTMENT IN SHARES (8,450,796) 0 - -------------------------------------------------------------------------------------------------------------------------- e34 + DISPOSITION OF PERMANENT INVESTMENT IN SHARES 0 0 - -------------------------------------------------------------------------------------------------------------------------- e35 (-) INVESTMENT IN PROPERTY PLANT AND EQUIPMENT (479,804) (485,668) - -------------------------------------------------------------------------------------------------------------------------- e36 + SALE OF PROPERTY PLANT AND EQUIPMENT 4,769 0 - -------------------------------------------------------------------------------------------------------------------------- e37 (-) INVESTMENT IN INTANGIBLE ASSETS 0 0 - -------------------------------------------------------------------------------------------------------------------------- e38 + DISPOSITION OF INTANGIBLE ASSETS 0 0 - -------------------------------------------------------------------------------------------------------------------------- e39 + OTHER PERMANENT INVESTMENTS 0 0 - -------------------------------------------------------------------------------------------------------------------------- e40 + DISPOSITION OF OTHER PERMANENT INVESTMENTS 0 0 - -------------------------------------------------------------------------------------------------------------------------- e41 + DIVIDEND RECEIVED 0 0 - -------------------------------------------------------------------------------------------------------------------------- e42 + INTEREST RECEIVED 135,810 297,898 - -------------------------------------------------------------------------------------------------------------------------- e43 + (-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS 0 0 - -------------------------------------------------------------------------------------------------------------------------- e44 + (-) OTHER ITEMS (210,035) (10,539) - -------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------- e10 NET CASH FROM FINANCING ACTIVITIES 1,334,154 2,397,504 - -------------------------------------------------------------------------------------------------------------------------- e45 + BANK FINANCING 1,334,129 0 - -------------------------------------------------------------------------------------------------------------------------- e46 + STOCK MARKET FINANCING 0 (124) - -------------------------------------------------------------------------------------------------------------------------- e47 + OTHER FINANCING 232,943 0 - -------------------------------------------------------------------------------------------------------------------------- e48 (-) BANK FINANCING AMORTIZATION (1,325,329) 0 - -------------------------------------------------------------------------------------------------------------------------- e49 (-) STOCK MARKET FINANCING AMORTIZATION 0 0 - -------------------------------------------------------------------------------------------------------------------------- e50 (-) OTHER FINANCING AMORTIZATION 0 0 - -------------------------------------------------------------------------------------------------------------------------- e51 + (-) INCREASE (DECREASE ) IN CAPITAL STOCK 112,269 267,015 - -------------------------------------------------------------------------------------------------------------------------- e52 (-) DIVIDENDS PAID 0 0 - -------------------------------------------------------------------------------------------------------------------------- e53 + PREMIUM ON ISSUANCE OF SHARES 1,056,887 2,153,711 - -------------------------------------------------------------------------------------------------------------------------- e54 + CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES 0 0 - -------------------------------------------------------------------------------------------------------------------------- e55 (-) INTEREST EXPENSE (40,607) (24,585) - -------------------------------------------------------------------------------------------------------------------------- e56 (-) REPURCHASE OF SHARES 0 0 - -------------------------------------------------------------------------------------------------------------------------- e57 + (-) OTHER ITEMS 0 1,487 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. STATUS OF CHANGES IN STOCKHOLDERS' EQUITY (THOUSANDS OF MEXICAN PESOS) CONSOLIDATED AUDITED
- ------------------------------------------------------------------------------------------------------------------------------------ STOCK- MINORITY HOLDERS' CONCEPTS CONTRIBUTED CAPITAL EARNED CAPITAL INVESTMENT EQUITY - ------------------------------------------------------------------------------------------------------------------------------------ PREMIUM ON ACCUMULATED ACCUMULATED CAPITAL ISSUANCE (LOSSES) COMPREHENSIVE MAJORITY STOCK OF SHARES EARNINGS OR RESULT INTEREST - ------------------------------------------------------------------------------------------------------------------------------------ OTHER EARNINGS RETAM COMPRE- (LOSSES) AND ISR HENSIVE RESERVES TO APPLY DEFERRED RESULT - ------------------------------------------------------------------------------------------------------------------------------------ BALANCE AT DECEMBER 31, 2006 3,763,412 997,606 200,612 6,820,510 -1,044,172 -30,096 10,707,872 2,252,461 12,960,333 - ------------------------------------------------------------------------------------------------------------------------------------ APPLICATION OF THE RESULT OF THE EXERCISE TO ACCUMULATED RESULTS 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ CONSTITUTION OF RESERVES 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ DECREED DIVIDENDS 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ (DECREASE) INCREASE CAPITAL 267,015 0 0 0 0 0 267,015 38,436 305,451 - ------------------------------------------------------------------------------------------------------------------------------------ REPURCHASE OF SHARES 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ RESERVE FOR THE ACQUISITION OF SHARES 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ (DECREASE) INCREASE IN PREMIUM ON ISSUANCE OF SHARES 0 2,153,711 0 0 0 0 2,153,711 0 2,153,711 - ------------------------------------------------------------------------------------------------------------------------------------ (DECREASE) INCREASE IN MINORITY INVESTMENT 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ COMPREHENSIVE INCOME (*) 0 0 0 1,529,057 205,814 -1,614 1,733,257 99,282 1,832,539 - ------------------------------------------------------------------------------------------------------------------------------------ BALANCE AT DECEMBER 31, 2007 4,030,427 3,151,317 200,612 8,349,567 -838,358 -31,710 14,861,855 2,390,179 17,252,034 - ------------------------------------------------------------------------------------------------------------------------------------ RECLASSIFICATION INITIAL BALANCES RESULT FOR HOLDING OF MONETARY ASSETS AND DEFERRED TAX ON INCOME 0 0 0 -838,358 838,358 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ APPLICATION OF THE RESULT OF THE EXERCISE TO ACCUMULATED RESULTS 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ CONSTITUTION OF RESERVES 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ DECREED DIVIDENDS 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ (DECREASE) INCREASE CAPITAL 112,269 0 0 0 0 0 112,269 0 112,269 - ------------------------------------------------------------------------------------------------------------------------------------ REPURCHASE OF SHARES 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ RESERVE FOR THE ACQUISITION OF SHARES 0 0 0 0 0 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ (DECREASE) INCREASE IN PREMIUM ON ISSUANCE OF SHARES 0 1,056,887 0 0 0 0 1,056,887 0 1,056,887 - ------------------------------------------------------------------------------------------------------------------------------------ (DECREASE) INCREASE IN MINORITY INVESTMENT 0 0 0 0 0 0 0 9,794 9,794 - ------------------------------------------------------------------------------------------------------------------------------------ COMPREHENSIVE INCOME (*) 0 0 0 1,796,137 0 356,007 2,152,144 722,369 2,874,513 - ------------------------------------------------------------------------------------------------------------------------------------ BALANCE AT DECEMBER 31, 2008 4,142,696 4,208,204 200,612 9,307,346 0 324,297 18,183,155 3,122,342 21,305,497 - ------------------------------------------------------------------------------------------------------------------------------------
(*) INCLUDES EARNED AND RECYCLED MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. DATE PER SHARE CONSOLIDATED AUDITED
- ----------------------------------------------------------------------------------------------------------------------- REF CATEGORIES QUARTER OF PRESENT QUARTER OF PREVIOUS D FINANCIAL YEAR FINANCIAL YEAR - ----------------------------------------------------------------------------------------------------------------------- d01 BASIC PROFIT PER ORDINARY SHARE (**) $ 3.70 $ 3.27 - ----------------------------------------------------------------------------------------------------------------------- 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 (**) $ 3.70 $ 3.27 - ----------------------------------------------------------------------------------------------------------------------- d05 DISCONTINUED OPERATIONS EFFECT ON EARNING (LOSS) PER SHARE (**) $ 0.00 $ 0.00 - ----------------------------------------------------------------------------------------------------------------------- d08 CARRYING VALUE PER SHARE $36.53 $31.31 - ----------------------------------------------------------------------------------------------------------------------- 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 0.62 times 1.24 times - ----------------------------------------------------------------------------------------------------------------------- d12 MARKET PRICE TO BASIC PROFIT PER ORDINARY SHARE 6.12 times 11.84 times - ----------------------------------------------------------------------------------------------------------------------- d13 MARKET PRICE TO BASIC PROFIT PER PREFERENT SHARE (**) 0.00 times 0.00 times - -----------------------------------------------------------------------------------------------------------------------
(**) TO CALCULATE THE DATA PER SHARE USE THE NET INCOME FOR THE LAST TWELVE MONTHS. MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 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 5.40% 6.74% - ----------------------------------------------------------------------------------------------------------------------- p02 NET INCOME TO STOCKHOLDERS' EQUITY (**) 8.92% 9.42% - ----------------------------------------------------------------------------------------------------------------------- p03 NET INCOME TO TOTAL ASSETS (**) 6.17% 7.12% - ----------------------------------------------------------------------------------------------------------------------- p04 CASH DIVIDENDS TO PREVIOUS YEAR NET INCOME 0.00% 0.00% - ----------------------------------------------------------------------------------------------------------------------- p05 INCOME DUE TO MONETARY POSITION TO NET INCOME 0.00% (11.99%) - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- ACTIVITY - ----------------------------------------------------------------------------------------------------------------------- p06 NET SALES TO NET ASSETS (**) 1.14 times 1.06 times - ----------------------------------------------------------------------------------------------------------------------- p07 NET SALES TO FIXED ASSETS (**) 3.42 times 3.05 times - ----------------------------------------------------------------------------------------------------------------------- p08 INVENTORIES TURNOVER (**) 3.37 times 4.16 times - ----------------------------------------------------------------------------------------------------------------------- p09 ACCOUNTS RECEIVABLE IN DAYS OF SALES 25 days 32 days - ----------------------------------------------------------------------------------------------------------------------- p10 PAID INTEREST TO TOTAL LIABILITIES WITH COST (**) 0.20% 749.09% - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- LEVERAGE - ----------------------------------------------------------------------------------------------------------------------- p11 TOTAL LIABILITIES TO TOTAL ASSETS 30.86% 24.47% - ----------------------------------------------------------------------------------------------------------------------- p12 TOTAL LIABILITIES TO STOCKHOLDERS' EQUITY 0.45 times 0.32 times - ----------------------------------------------------------------------------------------------------------------------- p13 FOREIGN CURRENCY LIABILITIES TO TOTAL LIABILITIES 39.61% 42.02% - ----------------------------------------------------------------------------------------------------------------------- p14 LONG-TERM LIABILITIES TO FIXED ASSETS 0.00% 0.00% - ----------------------------------------------------------------------------------------------------------------------- p15 OPERATING INCOME TO INTEREST PAID 54.38 times 88.84 times - ----------------------------------------------------------------------------------------------------------------------- p16 NET SALES TO TOTAL LIABILITIES (**) 3.70 times 4.31 times - ----------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------- LIQUIDITY - ----------------------------------------------------------------------------------------------------------------------- p17 CURRENT ASSETS TO CURRENT LIABILITIES 2.48 times 5.05 times - ----------------------------------------------------------------------------------------------------------------------- p18 CURRENT ASSETS LESS INVENTORY TO CURRENT LIABILITIES 0.80 times 3.33 times - ----------------------------------------------------------------------------------------------------------------------- p19 CURRENT ASSETS TO TOTAL LIABILITIES 1.37 times 2.59 times - ----------------------------------------------------------------------------------------------------------------------- p20 AVAILABLE ASSETS TO CURRENT LIABILITIES 10.97% 223.63% - -----------------------------------------------------------------------------------------------------------------------
(**) 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: 2008 GRUPO SIMEC, S.A.B. DE C.V. DIRECTOR REPORT CONSOLIDATED AUDITED GUADALAJARA, MEXICO, May 6, 2009- Grupo Simec, S.A.B. de C.V. (AMEX:SIM) ("Simec") announced today final audited results of operations for the year ended December 31, 2008. Acquisition of Corporacion Aceros DM, S.A. de C.V. On February 21, 2008, we entered into an agreement to acquire 100% of the shares of Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates ("Grupo San"), and on May 30, 2008 said acquisition was consummated. 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 1,450 employees produce 600 thousand tons of finished products annually. With this acquisition, Simec and Industrias CH, S.A.B. de C.V. ("ICH") position themselves as the second-largest producer of rebar and the largest steel producer 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, with 40% of sales in Mexico and 60% outside Mexico, both of which will allow them to better address the natural cycles of the steel industry on the domestic and global levels. Additionally, Simec has already identified significant synergies and economies of scale that will increase the company's operating margins. Grupo San's central location in San Luis Potosi, where Simec is 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 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. The financial statements of Simec include the operations of Grupo San since June 1, 2008. Pursuant to Mexican Financial Reporting Standards "Bulletin B-7 Acquisitions of Business," Simec is in the process of calculating the goodwill and other intangible assets in the acquisition of Grupo San; as of December 31, 2008, Simec registered the adjustments of the fixed assets and intangible assets, the Company has not concluded the period of identification and measurement of the reasonable values of the acquires assets and liabilities assumed in the acquisition of Grupo San. Year Ended December 31, 2008 compared to Year Ended December 31, 2007 Net Sales Net sales increased 46% to Ps. 35,185 million in 2008 (including the net sales generated by the newly acquired plants of Grupo San of Ps. 2,532 million) compared to Ps. 24,106 million in 2007. Shipments of finished steel products increased 9% to 2 million 924 thousand tons in 2008 (including the net sales generated by the newly acquired plants of Grupo San of 261 thousand tons) compared to 2 million 693 thousand tons in 2007. Total sales outside of Mexico in 2008 increased 44% to Ps. 24,471 million (including the net sales generated by the newly acquired plants of Grupo San of Ps. 98 million) compared with Ps. 17,031 million in 2007, while total Mexican sales increased 51% from Ps. 7,075 million in 2007 to Ps. 10,714 million in 2008 (including the net sales generated by the newly acquired plants of Grupo San of Ps. 2,434 million). The increase in sales can be explained due to higher shipments during 2008, compared with 2007 (a 231,000 tons increase) and 34% increase in the average price of steel products. Direct Cost of Sales Direct cost of sales increased 45% from Ps. 20,499 million in 2007 to Ps. 29,796 million in 2008 (including the cost of sales generated by the newly acquired plants of Grupo San of Ps. 1,444 million). Direct cost of sales as a percentage of net sales represented 85% in 2008 compared to 85% in 2007. The increase in the direct cost of sales is attributable mainly to an increase of 34% in the average cost of raw materials used to produce steel products in 2008 versus 2007, primarily as a result of increases in the price of scrap and certain other raw materials, as well as a 9% increase in shipments. Gross Profit Gross profit in 2008 increase 49% to Ps. 5,389 million (including the gross profit generated by the newly acquired plants of Grupo San of Ps. 1,010 million) compared to Ps. 3,607 million in 2007. Gross profit as a percentage of net sales was 15% in 2008 and 2007. This increase in gross profit was principally due to an increase of 9% in sales volume. Operating Expenses Operating expenses increased 60% to Ps. 2,274 million in 2008 (including the operating expenses from the newly acquired plants of Grupo San of Ps. 433 million and the depreciation and amortization of the tangible and intangible assets of Ps. 270 million registered by the acquisition of Grupo San) compared to Ps. 1,423 million in 2007 and represented 6% of net sales in 2008 and 2007. Operating Profit Operating profit increased 43% to Ps. 3,115 million in 2008 (including the operating profit from the newly acquired plants of Grupo San of Ps. 655 million) compared to Ps. 2,184 million in 2007. Operating profit as a percentage of net sales was 9% in 2008 compared to 9% in 2007. The increase in the operating profit was due principally to an increase of 9% in sales volume and an increase of 34% in the average price of steel products. Comprehensive Financial Cost Comprehensive financial cost in 2008 represented an expense of Ps. 175 million compared with a gain of Ps. 41 million in 2007. Net interest income was Ps. 79 million in 2008 compared with net interest income of Ps. 274 million in 2007, reflecting the use of cash and debt for the acquisition of Grupo San. At the same time, we registered an exchange loss of Ps. 254 million in 2008 compared with an exchange loss of Ps. 38 million in 2007, reflecting a 25% increase in the value of the dollar versus the peso as of December 31, 2008 compared to December 31, 2007. Other Expenses (Income) net The company recorded other expense net of Ps. 4 million in 2008 compared to other income net of Ps. 21 million in 2007. Income Taxes Income Taxes recorded Ps. 1,036 million in 2008 (including Ps. 293 million of deferred income taxes) compared to Ps. 621 million in 2007 (including Ps. 509 million of deferred income taxes). Net Profit As a result of the foregoing, net profit increased by 17% to Ps. 1,900 million in 2008 from Ps. 1,625 million in 2007. Liquidity and Capital Resources As of December 31, 2008, Simec's total consolidated debt consisted of U.S. $952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest on December 31, 2008 was U.S. $387,882). As of December 31, 2007, Simec's total consolidated debt consisted of U.S. $302,000 from 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest on December 31, 2007 was U.S. $363,703). Net resources provided by operations were Ps. 1,940 million in 2008 versus Ps. 2,384 million of net resources provided by operations in 2007. Net resources provided by financing activities were Ps. 1,375 million in 2008 (which amount includes the capital increase of Ps. 1,169 million in July 2008) versus Ps. 2,292 million of net resources provided by financing activities in 2007 (which amount includes the capital increase of Ps. 2,421 million in February 2007). Net resources used in investing activities (to acquire property, plant and equipment, other non-current assets and liabilities) were Ps. 9,135 million in 2008 (which amount includes Ps. 8,451 million used in the acquisition of Grupo San) versus net resources used in investing activities (to acquire property, plant and equipment and other non-current assets and liabilities) of Ps. 484 million in 2007. Comparative Fourth Quarter 2008 vs. Third Quarter 2008 Net Sales Net sales decreased 28% from Ps. 10,533 million for the third quarter 2008 (including the net sales generated by the newly acquired plants of Grupo San of Ps. 1,073 million) to Ps. 7,618 million for the fourth quarter 2008 (including the net sales generated by the newly acquired plants of Grupo San of Ps. 945 million). Sales in tons of finished steel decreased 29% to 567 thousand tons in the fourth quarter 2008 compared with 795 thousand tons in the third quarter 2008. The total sales outside of Mexico for the fourth quarter 2008 decreased 32% to Ps. 4,983 million compared with Ps. 7,317 million for the third quarter 2008. Total Mexican sales decreased 18% to Ps. 2,635 million in the fourth quarter 2008 from Ps. 3,216 million in the third quarter 2008. Prices of finished products sold in the fourth quarter 2008 increased approximately 1% compared to the third quarter 2008. Direct Cost of Sales Direct cost of sales decreased 16% from Ps. 8,726 million in the third quarter 2008 (including the cost of sales generated by the newly acquired plants of Grupo San of Ps. 663 million) to Ps. 7,327 million for the fourth quarter 2008 (including the cost of sales generated by the newly acquired plants of Grupo San of Ps. 473 million). With respect to sales, in the fourth quarter 2008, the direct cost of sales represents 96% compared to 83% for the third quarter 2008. The average cost of raw materials used to produce steel products increased 18% in the fourth quarter 2008 versus the third quarter 2008, primarily as a result of increases in the price of scrap and certain other raw materials. Gross Profit Gross profit for the fourth quarter 2008 decreased 84% to Ps. 291 million (including the gross profit generated by the newly acquired plants of Grupo San of Ps. 472 million) compared to Ps. 1,807 million in the third quarter 2008 (including the gross profit generated by the newly acquired plants of Grupo San of Ps. 410 million). The gross profit as a percentage of net sales for the fourth quarter 2008 was 4% compared with 17% for the third quarter 2008. The decrease in gross profit was principally due to the increases in the price of scrap and certain other raw materials and the decrease in tons shipped. Operating Expenses Operating expenses increased 62% to Ps. 916 million in the fourth quarter 2008 (including the operating expenses from the newly acquired plants of Grupo San of Ps. 232 million and the depreciation and amortization of Ps. 270 of the tangible and intangible assets determined in the acquisition of Grupo San) compared to Ps. 564 million for the third quarter 2008 (including the operating expenses from the newly acquired plants of Grupo San of Ps. 149 million). Operating expenses as a percentage of net sales represented 12% during the fourth quarter 2008 compared to 5% in the third quarter 2008. Operating Profit Operating profit was Ps. 1,243 million in the third quarter 2008 (including the operating profit from the newly acquired plants of Grupo San of Ps. 261 million) compared to an operating loss of Ps. 625 million for the fourth quarter 2008 (including the operating profit by the newly acquired plants of Grupo San of Ps. 240 million). The operating loss as a percentage of net sales in the fourth quarter 2008 was 8% compared to 12% of operating profit in the third quarter 2008. The operating loss was principally due to the decrease in tons shipped and the increases in the price of scrap and certain other raw materials. Comprehensive Financial Cost Comprehensive financial cost for the fourth quarter 2008 represented an income of Ps. 59 million compared with Ps. 25 million of income for the third quarter 2008. Net interest expense was Ps. 2 million in the fourth quarter 2008 compared with Ps. 11 million of net interest expense in the third quarter 2008. At the same time, we registered an exchange gain of Ps. 61 million in the fourth quarter 2008 compared with an exchange gain of Ps. 36 million in the third quarter 2008. Other Expenses (Income) net The company recorded other expenses net of Ps. 57 million in the fourth quarter 2008 compared with other income net of Ps. 49 million for the third quarter 2008. Income Taxes Income taxes for the fourth quarter 2008 was an income of Ps. 172 million compared to Ps. 483 million of expense for the third quarter 2008. Net Profit As a result of the foregoing, net profit was Ps. 834 million in the third quarter 2008 compared to Ps. 451 million of net loss in the fourth quarter 2008. Comparative Fourth Quarter 2008 vs. Fourth Quarter 2007 Net Sales Net sales increased 31% from Ps. 5,824 million for the fourth quarter 2007 compared with Ps. 7,618 million for the same period in 2008 (including the net sales generated by the newly acquired plants of Grupo San of Ps. 945 million). Sales in tons of finished steel decreased 16% to 567 thousand tons in the fourth quarter 2008 compared with 675 thousand tons in the same period 2007. The total sales outside of Mexico for the fourth quarter 2008 increased 17% to Ps. 4,983 million compared with Ps. 4,264 million for the same period 2007. Total Mexican sales increased 69% to Ps. 2,635 million in the fourth quarter 2008 from Ps. 1,560 millions in the same period 2007. Prices of finished products sold in the fourth quarter 2008 increased approximately by 56% compared to the fourth quarter 2007. Direct Cost of Sales Direct cost of sales increased 35% from Ps. 5,436 million in the fourth quarter 2007 to Ps. 7,327 million for the same period 2008 (including the cost of sales generated by the newly acquired plants of Grupo San of Ps. 473 million). With respect to sales, in the fourth quarter 2008, the direct cost of sales represents 96% compared to 93% for the same period 2007. The average cost of raw materials used to produce steel products increased 60% in the fourth quarter 2008 versus the fourth 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 2008 decreased 25% to Ps. 291 million (including the gross profit generated by the newly acquired plants of Grupo San of Ps. 472 million) compared to Ps. 388 million in the same period 2007. The gross profit as a percentage of net sales for the fourth quarter 2008 was 4% compared with 7% for the same period 2007. The decrease in gross profit was principally due to the decrease in tons shipped and the increases in the price of scrap and certain other raw materials. Operating Expenses Operating expenses increased 160% to Ps. 916 million in the fourth quarter 2008 (including the operating expenses from the newly acquired plants of Grupo San of Ps. 232 million and the depreciation and amortization of Ps. 270 of the tangible and intangible assets determined in the acquisition of Grupo San) compared to Ps. 352 million for the same period 2007. Operating expenses as a percentage of net sales represented 12% during the fourth quarter 2008 compared to 6% of the same period 2007. Operating Profit Operating profit was Ps. 36 million in the fourth quarter 2007 compared to Ps. 625 million of operating loss for the same period 2008 (including the operating profit by the newly acquired plants of Grupo San of Ps. 240 million). The operating loss as a percentage of net sales in the fourth quarter 2008 was 8% compared to 1% of operating profit in the same period 2007. Comprehensive Financial Cost Comprehensive financial cost for the fourth quarter 2008 represented a gain of Ps. 59 million compared with an expense of Ps. 168 million for the fourth quarter 2007. Net interest expense was Ps. 2 million in the fourth quarter 2008 compared with Ps. 55 million of net interest income in the fourth quarter 2007. At the same time, we registered an exchange gain of Ps. 61 million in the fourth quarter 2008 compared with an exchange loss of Ps. 36 million in the fourth quarter 2007. Other Expenses (Income) net The company recorded other expenses net of Ps. 57 million for the fourth quarter 2008 compared with other expenses net of Ps. 24 million for the same period 2007. Income Taxes Income taxes for the fourth quarter 2008 decreased to Ps. 172 million compared to a decrease of Ps. 120 million for the same period 2007. Net Profit As a result of the foregoing, net loss was Ps. 451 million in the fourth quarter 2008 compared to Ps. 36 million of net loss in the fourth quarter 2007. - -------------------------------------------------------------------------------- Twelve months Twelve months 2008 ended December ended December vs. Millions of pesos 31, 2008 31, 2007 2007 - -------------------------------------------------------------------------------- Sales 35,185 24,106 46% - -------------------------------------------------------------------------------- Cost of Sales 29,796 20,499 45% - -------------------------------------------------------------------------------- Gross Profit 5,389 3,607 49% - -------------------------------------------------------------------------------- Operating Expenses 2,274 1,423 60% - -------------------------------------------------------------------------------- Operating Profit 3,115 2,184 43% - -------------------------------------------------------------------------------- EBITDA 4,011 2,733 47% - -------------------------------------------------------------------------------- Net Profit 1,900 1,625 17% - -------------------------------------------------------------------------------- Sales Outside Mexico 24,471 17,031 44% - -------------------------------------------------------------------------------- Sales in Mexico 10,714 7,075 51% - -------------------------------------------------------------------------------- Total Sales (tons) 2,924 2,693 9% - --------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------- 4Q08 vs. 4Q08 vs. (Millions of pesos) 4Q08 3Q08 4Q07 3Q08 4Q07 - ----------------------------------------------------------------------------------------------------------------- Sales 7,618 10,533 5,824 (28%) 31% - ----------------------------------------------------------------------------------------------------------------- Cost of Sales 7,327 8,726 5,436 (16%) 35% - ----------------------------------------------------------------------------------------------------------------- Gross Profit 291 1,807 388 (84%) (25%) - ----------------------------------------------------------------------------------------------------------------- Operating Expenses 916 564 352 62% 160% - ----------------------------------------------------------------------------------------------------------------- Operating Profit (625) 1,243 36 (150%) (1,836%) - ----------------------------------------------------------------------------------------------------------------- EBITDA (160) 1,407 206 (111%) (178%) - ----------------------------------------------------------------------------------------------------------------- Net Profit (451) 834 (36) (154%) 1,153% - ----------------------------------------------------------------------------------------------------------------- Sales Outside Mexico 4,983 7,317 4,264 (32%) 17% - ----------------------------------------------------------------------------------------------------------------- Sales in Mexico 2,635 3,216 1,560 (18%) 69% - ----------------------------------------------------------------------------------------------------------------- Total Sales (tons) 567 795 675 (29%) (16%) - -----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------- Thousands Millions of Average Thousands Millions of Average of tons pesos price per of tons pesos price per twelve twelve ton twelve twelve twelve ton twelve months months months months months months ended ended ended ended ended ended December December December December December December Product 31, 2008 31, 2008 31, 2008 31, 2007 31, 2007 31, 2007 - ----------------------------------------------------------------------------------------------------- SBQ 2,034 26,165 12,864 1,946 18,419 9,465 - ----------------------------------------------------------------------------------------------------- Light Structural 172 1,787 10,391 276 2,162 7,834 - ----------------------------------------------------------------------------------------------------- Structural 183 1,979 10,815 216 1,752 8,112 - ----------------------------------------------------------------------------------------------------- Rebar 467 4,408 9,439 250 1,703 6,810 - ----------------------------------------------------------------------------------------------------- Others 68 845 0 5 70 0 - ----------------------------------------------------------------------------------------------------- Total 2,924 35,185 12,033 2,693 24,106 8,951 - -----------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------- Average Average Thousands of Millions Average Thousands Millions price per Thousands Millions price per tons of pesos price per of tons of pesos ton of tons of pesos ton Product 4Q08 4Q08 ton 4Q08 3Q08 3Q08 3Q08 4Q07 4Q07 4Q07 - --------------------------------------------------------------------------------------------------------------------------------- SBQ 335 5,435 16,224 555 7,858 14,159 497 4,524 9,102 - --------------------------------------------------------------------------------------------------------------------------------- Light Structural 30 339 11,302 41 482 11,756 59 457 7,754 - --------------------------------------------------------------------------------------------------------------------------------- Structural 33 371 11,243 40 488 12,200 45 357 7,930 - --------------------------------------------------------------------------------------------------------------------------------- Rebar 146 1,210 8,287 127 1,324 10,425 70 456 6,510 - --------------------------------------------------------------------------------------------------------------------------------- Others 23 263 0 32 381 0 4 31 0 - --------------------------------------------------------------------------------------------------------------------------------- Total 567 7,618 13,435 795 10,533 13,249 675 5,824 8,629 - ---------------------------------------------------------------------------------------------------------------------------------
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: 2008 GRUPO SIMEC, S.A.B. DE C.V. FINANCIAL STATEMENT NOTES CONSOLIDATED AUDITED (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. 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 - Below is a summary of the most significant accounting policies and practices used in the preparation of the consolidated financial statements, in conformity with Mexican Financial Reporting Standards (MFRS), which include Bulletins and Circulars issued by the Accounting Principles Commission (CPC) of the Mexican Institute of Public Accountants (IMCP) which have not been amended, replaced or abrogated by MFRS issued by the Mexican Financial Reporting Standards Research and Development Board (Consejo Mexicano para la Investigacion y Desarrollo de Normas de Informacion Financiera, A.C. (CINIF). b. The main subsidiaries of SIMEC are the following: o Compania Siderurgica de California, S.A. de C.V. o Industrias del Acero y del Alambre, S.A. de C.V. o Pacific Steel Inc. o SimRep Corporation and PAV Republic and Subsidiaries o Corporacion Aceros DM, S.A. de C.V. 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 - Domestic subsidiaries' inventories are recorded initially at average cost under the direct costing system. Foreign subsidiaries' inventories are valued on a last-in, first-out (LIFO). For translation effects into MFRS the inventories have been adjusted from LIFO to average cost under the direct costing system. Billet finished goods and work in process, raw materials and materials, supplies and rollers - At the average cost. 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, 2008 the fair value of natural gas 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, until December 31, 2007. 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 estimated useful lives of assets as of December 31, 2008 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 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. Income taxes - 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. k. 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 foreign subsidiaries, were translated into pesos in conformity with Mexican accounting Bulletin MFRS B-15, Transactions in Foreign Currency. The first step in the process of conversion of financial information of the operations is the determination of the functional currency, which is in first instance the currency of primary the economic surroundings of the foreign operation; nevertheless, despite the previous thing, the functional currency can differ from the premises or registry, in the measurement that this one does not represent the currency that fundamentally affects the cash flow of the operations abroad. The financial statements of the foreign subsidiaries were turned to Mexican pesos with the following procedure: - - Applying the prevailing exchange rate at the consolidated balance date for monetary assets and liabilities. - - Applying the prevailing historical exchange rate for nonmonetary assets and liabilities and for stockholders' equity accounts. - - Applying the prevailing the historical exchange rate at the consolidated balance sheet date for revenues and expenses during the reporting period - - The resulting effect of translation, the process of consolidation and to apply the participation method, is recorded in stockholders' equity under the accumulated effect by conversion forming part of the Comprehensive Income. l. 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, 2008 sales to five customers accounted for approximately 34% 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. m. Other income (expenses) - Other income (expenses) shown in the consolidated statements of operations primarily includes other financial operations. (2) Financial Debt: As of December 31, 2008, Simec's total consolidated debt consisted of U.S. $952,000; U.S. $650,000 is a credit bank and U.S. $302,000 of 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest on December 31, 2008 was U.S. $387,882). As of December 31, 2007, Simec's total consolidated debt consisted of U.S. $302,000 from 8 7/8% medium-term notes ("MTN's") due 1998 (accrued interest on December 31, 2007 was U.S. $363,703). (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. 13,320 (U.S. $983,875) at December 31, 2008, (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: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. RELATIONS OF SHARES INVESTMENTS CONSOLIDATED
- --------------------------------------------------------------------------------------------------------------------------- NUMBER OF COMPANY NAME MAIN ACTIVITIES SHARES OWNERSHIP - --------------------------------------------------------------------------------------------------------------------------- SUBSIDIARIES - --------------------------------------------------------------------------------------------------------------------------- Cia Siderurgica de Guadalajara Sub-Holding 99.99 - --------------------------------------------------------------------------------------------------------------------------- Simec International Production and sales of steel products 99.99 - --------------------------------------------------------------------------------------------------------------------------- Arrendadora Simec Production and sales of steel products 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 products 50.22 - --------------------------------------------------------------------------------------------------------------------------- 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 - --------------------------------------------------------------------------------------------------------------------------- Corporacion Aceros DM Production and sales of steel products 100.00 - --------------------------------------------------------------------------------------------------------------------------- Productos Siderurgicos Tlaxcala Sales of steel products 100.00 - --------------------------------------------------------------------------------------------------------------------------- Comercializadora MSAN Sales of steel products 100.00 - --------------------------------------------------------------------------------------------------------------------------- Comercializadora Aceros DM Sales of steel products 100.00 - --------------------------------------------------------------------------------------------------------------------------- Promotora de Aceros San Luis Sales of steel products 100.00 - --------------------------------------------------------------------------------------------------------------------------- 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: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. CREDITS BREAK DOWN (THOUSANDS OF MEXICAN PESOS) CONSOLIDATED AUDITED
- ------------------------------------------------------------------------------------------------------------------------------------ Denominated in Pesos Denominated in Foreign Currency (Thousands of Pesos) (Thousands of Pesos) - ------------------------------------------------------------------------------------------------------------------------------------ Credit Type / Amortization Rate of Institution Date Interest Time Interval Time Interval - ------------------------------------------------------------------------------------------------------------------------------------ Until Until 5 5 Until Until Until Years Until Until Until Years Current Until 1 2 3 4 or Current Until 1 2 3 4 or Year Year Years Years Years More Year Year Years Years Years More - ------------------------------------------------------------------------------------------------------------------------------------ BANKS - ------------------------------------------------------------------------------------------------------------------------------------ Libor GE Capital 20/05/2010 + 0.25 8,800 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL BANKS 0 0 0 0 0 0 0 8,800 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 4,055 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL STOCK EXCHANGE 0 0 0 0 0 0 0 4,055 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ SUPPLIERS - ------------------------------------------------------------------------------------------------------------------------------------ Various 0 443,522 0 0 0 0 0 2,956,250 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL SUPPLIERS 0 443,522 0 0 0 0 0 2,956,250 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 0 737,785 0 0 0 0 0 806,482 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 0 737,785 0 0 0 0 0 806,482 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------ TOTAL 0 1,181,307 0 0 0 0 0 3,775,587 0 0 0 0 - ------------------------------------------------------------------------------------------------------------------------------------
NOTES: The exchange rate of the peso to the U.S. Dollar at December 31, 2008 was Ps. 13.5383 MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. MONETARY FOREIGN CURRENCY POSITION (Thousands of Mexican Pesos) CONSOLIDATED AUDITED
- ---------------------------------------------------------------------------------------------------------------------------- DOLLARS OTHER CURRENCIES TOTAL - ---------------------------------------------------------------------------------------------------------------------------- THOUSANDS THOUSANDS THOUSANDS THOUSANDS THOUSANDS FOREIGN CURRENCY POSITION OF DOLLARS OF PESOS OF DOLLARS OF PESOS OF PESOS - ---------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS 169,629 2,296,508 1 19 2,296,527 - ---------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------- LIABILITIES POSITION 277,676 3,758,261 630 8,526 3,766,787 - ---------------------------------------------------------------------------------------------------------------------------- SHORT TERM LIABILITIES POSITION 277,676 3,758,261 630 8,526 3,766,787 - ---------------------------------------------------------------------------------------------------------------------------- LONG TERM LIABILITIES POSITION 0 0 0 0 0 - ---------------------------------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------------------------------- NET BALANCE (108,047) (1,461,753) (629) (8,507) (1,470,260) - ----------------------------------------------------------------------------------------------------------------------------
NOTES THE EXCHANGE RATE OF THE PESO TO THE U.S. DOLLAR AT DECEMBER 31, 2008 WAS PS. 13.5383 MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. DEBT INSTRUMENTS CONSOLIDATED AUDITED 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 2.45 times. B) Accomplished the actual situation is 0.29 C) Accomplished the actual situation is 93.89 As of December 31, 2008, the remaining balance of the MTNs not exchanged amounts to Ps. 4,055 ($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: 2008 GRUPO SIMEC, S.A.B. DE C.V. PLANTS, COMMERCE CENTERS OR DISTRIBUTION CENTERS CONSOLIDATED AUDITED
- -------------------------------------------------------------------------------------------------------------------------- PLANT PLANT OR CENTER ECONOMIC ACTIVITY CAPACITY UTILIZATION (%) - -------------------------------------------------------------------------------------------------------------------------- GUADALAJARA MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS 480 77.60 - -------------------------------------------------------------------------------------------------------------------------- MEXICALI MINI MILL PRODUCTION AND SALES OF STEEL PRODUCTS 250 75.77 - -------------------------------------------------------------------------------------------------------------------------- INDUSTRIAS DEL ACERO Y DEL ALAMBRE SALE OF STEEL PRODUCTS 0 0 - -------------------------------------------------------------------------------------------------------------------------- APIZACO AND CHOLULA PLANTS PRODUCTION AND SALES OF STEEL PRODUCTS 460 82.13 - -------------------------------------------------------------------------------------------------------------------------- CANTON CASTER FACILITY PRODUCTION OF BILLET 1,380 64.20 - -------------------------------------------------------------------------------------------------------------------------- LORAIN CASTER FACILITY PRODUCTION OF BILLET 1,150 76.50 - -------------------------------------------------------------------------------------------------------------------------- LORAIN HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 840 71.10 - -------------------------------------------------------------------------------------------------------------------------- LACKAWANNA HOT-ROLLING MILL PRODUCTION AND SALES OF STEEL PRODUCTS 600 75.40 - -------------------------------------------------------------------------------------------------------------------------- MASSILLON COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 125 74.30 - -------------------------------------------------------------------------------------------------------------------------- GARY COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 70 46.90 - -------------------------------------------------------------------------------------------------------------------------- ONTARIO COLD-FINISH FACILITY PRODUCTION AND SALES OF STEEL PRODUCTS 60 51.10 - --------------------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. MAIN RAW MATERIALS CONSOLIDATED AUDITED
- ------------------------------------------------------------------------------------------------------------- DOMESTIC COST DOMESTIC MAIN SUPPLIERS FOREIGN MAIN SUPPLIERS SUBSTITUTION PRODUCTION (%) - ------------------------------------------------------------------------------------------------------------- PLANTS IN USA SCRAP VARIOUS NO 10.20 - ------------------------------------------------------------------------------------------------------------- SCRAP VARIOUS PLANTS IN MEXICO YES 51.46 - ------------------------------------------------------------------------------------------------------------- PLANTS IN USA COKE VARIOUS NO 26.50 - ------------------------------------------------------------------------------------------------------------- PLANTS IN USA PELLETS VARIOUS NO 5.30 - ------------------------------------------------------------------------------------------------------------- FERROALLOYS VARIOUS PLANTS IN MEXICO YES 7.76 - ------------------------------------------------------------------------------------------------------------- PLANTS IN USA FERROALLOYS VARIOUS NO 6.00 - ------------------------------------------------------------------------------------------------------------- ELECTRODES VARIOUS PLANTS IN MEXICO VARIOUS YES 1.79 - ------------------------------------------------------------------------------------------------------------- PLANTS IN USA ELECTRODES VARIOUS NO 1.10 - -------------------------------------------------------------------------------------------------------------
MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. SALES DISTRIBUTION BY PRODUCT CONSOLIDATED DOMESTIC SALES AUDITED - -------------------------------------------------------------------------------- MAIN PRODUCTS NET SALES MAIN DESTINATION - -------------------------------------------------------------------------------- VOLUME AMOUNT TRADEMARKS CUSTOMERS - -------------------------------------------------------------------------------- STRUCTURAL PROFILES 143 1,562,615 - -------------------------------------------------------------------------------- COMMERCIAL PROFILES 55 601,003 - -------------------------------------------------------------------------------- REBAR 378 3,638,583 - -------------------------------------------------------------------------------- FLAT BAR 81 801,724 - -------------------------------------------------------------------------------- STEEL BARS 304 3,264,473 - -------------------------------------------------------------------------------- OTHER 4 224,466 - -------------------------------------------------------------------------------- BILLET 26 210,347 - -------------------------------------------------------------------------------- MALLA 17 178,614 - -------------------------------------------------------------------------------- CASTILLOS 6 76,093 - -------------------------------------------------------------------------------- ALAMBRON 15 155,756 - -------------------------------------------------------------------------------- T O T A L 10,713,674 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FOREIGN SALES 24,471,546 - -------------------------------------------------------------------------------- TOTAL 35,185,220 - -------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. SALES DISTRIBUTION BY PRODUCT CONSOLIDATED FOREIGN SALES AUDITED - -------------------------------------------------------------------------------- MAIN PRODUCTS NET SALES MAIN DESTINATION - -------------------------------------------------------------------------------- VOLUME AMOUNT TRADEMARKS CUSTOMERS - -------------------------------------------------------------------------------- EXPORTS - -------------------------------------------------------------------------------- STRUCTURAL PROFILES 40 416,458 - -------------------------------------------------------------------------------- COMMERCIAL PROFILES 21 203,603 - -------------------------------------------------------------------------------- REBAR 89 769,551 - -------------------------------------------------------------------------------- STEEL BARS 43 496,084 - -------------------------------------------------------------------------------- FLAT BAR 15 180,986 - -------------------------------------------------------------------------------- BILLET 0 0 - -------------------------------------------------------------------------------- FOREIGN SUBSIDIARIES - -------------------------------------------------------------------------------- HOT-ROLLED BARS 944 12,754,052 - -------------------------------------------------------------------------------- COLD-FINISHED BARS 131 2,390,303 - -------------------------------------------------------------------------------- SEMI-FINISHED SEAMLESS TUBE ROUNDS 350 3,991,389 - -------------------------------------------------------------------------------- OTHER SEMI-FINISHED TRADE PRODUCTS 262 3,269,120 - -------------------------------------------------------------------------------- T O T A L 24,471,546 - -------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. CONSTRUCTION IN PROGRESS CONSOLIDATED AUDITED THE PROJECTS IN PROGRESS AT DECEMBER 31, 2008, ARE: PROJECTS IN PROGRESS TOTAL INVESTMENT PROJECTS IN REPUBLIC 195,561 PROJECTS IN MEXICALI 158,992 PROJECTS IN TLAXCALA 18,154 PROJECTS IN GUADALAJARA 10,674 PROJECTS IN SAN LUIS (GRUPO SAN) 3,216 ------- TOTAL INVESTMENT AT DECEMBER 31, 2008 386,597 ------- MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. TRANSACTIONS IN FOREIGN CURRENCY AND CONVERSION OF FINANCIAL STATEMENTS OF FOREIGN OPERATIONS INFORMATION RELATED TO BULLETIN B-15 CONSOLIDATED AUDITED 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 foreign subsidiaries, were translated into pesos in conformity with Mexican accounting Bulletin MFRS B-15, Transactions in Foreign Currency. The first step in the process of conversion of financial information of the operations is the determination of the functional currency, which is in first instance the currency of primary the economic surroundings of the foreign operation; nevertheless, despite the previous thing, the functional currency can differ from the premises or registry, in the measurement that this one does not represent the currency that fundamentally affects the cash flow of the operations abroad. The financial statements of the foreign subsidiaries were turned to Mexican pesos with the following procedure: - - Applying the prevailing exchange rate at the consolidated balance date for assets and liabilities. - - Applying the prevailing historical exchange rate for stockholders' equity accounts. - - Applying the prevailing the historical exchange rate at the consolidated balance sheet date for revenues and expenses during the reporting period. - - The resulting effect of translation, the process of consolidation and to apply the participation method, is recorded in stockholders' equity under the accumulated effect by conversion forming part of the Comprehensive Income. MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED INTEGRATION OF THE PAID SOCIAL CAPITAL STOCK CHARACTERISTICS OF THE SHARES AUDITED
- -------------------------------------------------------------------------------------------------------------- NOMINAL VALID CAPITAL STOCK SERIES VALUE COUPON NUMBER OF SHARES (Thousands of Pesos) - -------------------------------------------------------------------------------------------------------------- FIXED VARIABLE PORTION PORTION MEXICAN FREE SUBSCRIPTION FIXED VARIABLE - -------------------------------------------------------------------------------------------------------------- B 90,850,050 406,859,164 0 497,709,214 441,786 1,978,444 - -------------------------------------------------------------------------------------------------------------- TOTAL 90,850,050 406,859,164 0 497,709,214 441,786 1,978,444 - --------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- TOTAL NUMBER OF SHARES REPRESENTING THE PAID-IN CAPITAL STOCK ON THE DATE OF SENDING THE INFORMATION: 497,709,214 - -------------------------------------------------------------------------------- MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED AUDITED R20: PRO FORMA FINANCIAL INFORMATION The following combined pro forma financial information (unaudited) is based on the Company's historical financial statements, adjusted to include the effects of the acquisition of Grupo San. The pro forma information (unaudited) assumes that the acquisition was conducted at the beginning of 2008 and 2007, respectively, and is based on the available information and certain assumptions that management considered reasonable. The pro forma financial information (unaudited) is not intended to present the results of the consolidated operations had the acquisition occurred on such date, nor to anticipate the Company's results of operations. Year ended Year ended December 31, December 31, 2008 2007 ------------ ------------ Net sales Ps. 37,870 Ps. 28,402 Marginal profit 6,302 4,587 Net income Ps. 2,378 Ps. 1,867 ------ ------ Earnings per share 4.90 3.99 ====== ====== MEXICAN STOCK EXCHANGE SIFIC / ICS STOCK EXCHANGE CODE: SIMEC QUARTER: 4 YEAR: 2008 GRUPO SIMEC, S.A.B. DE C.V. CONSOLIDATED AUDITED 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 6 OF 2009. -----END PRIVACY-ENHANCED MESSAGE-----