JAVER REPORTS FINANCIAL RESULTS

FOR FIRST QUARTER 2014

INVESTOR RELATIONS CONTACTS:

In Monterrey:
Felipe Loera, Chief Financial Officer
Tel: +52 81 1133-6468
floera@javer.com.mx
Veronica Lozano, Investor Relations
Tel. +52 (81) 1133-6699 Ext. 6515
vlozano@javer.com.mx

In New York:
Melanie Carpenter
i-advize Corporate Communications, Inc.
Tel: +212-406-3692
mcarpenter@i-advize.com
For more information, visit:
http://www.javer.com.mx/inversionistasHome.html

First Quarter 2014

Earnings Release

JAVER REPORTS HOME SALES UP NEARLY 16% TO 4,418 UNITS IN FIRST QUARTER 2014
Monterrey, Nuevo Leon, Mexico April 29, 2014 - Servicios Corporativos Javer S.A.P.I.
de C.V., (Javer or the Company), one of the largest housing development companies in
Mexico, today announced financial results for the first quarter (1Q14) period ended
March 31, 2014.
1Q14 Highlights:
Units Sold totaled 4,418 homes, up 15.9% compared to 1Q13.
Net Revenues were Ps. 1,370.7 million, representing an increase of 22.2% compared to
1Q13, as a result of the increase of homes titled along with a higher overall sales price.
EBITDA totaled Ps. 173.6 million, representing a margin of 12.7%, which improved from
1Q13 due to i) greater sales volumes, ii) the increase in the average sales price, iii) an
improved gross margin and iv) a reduction of SG&A, as percentage of sales.
Net Income reached Ps. 10.0 million, down 88% compared to 1Q13, when the Company
registered a Ps. 154.9 million gain in the interest income line due to the depreciation of
the peso, versus Ps. 8.9 million during 1Q14, which explains the variance.
EXECUTIVE SUMMARY

(Figures in thousand pesos)

Homes titled
Net Revenues
Gross Profit
Gross Margin
EBITDA
EBITDA Margin
Net Income
Net Margin

1Q14
1Q13
Variance
4,418
3,811
15.9%
1,370,659 1,121,256
22.2%
377,765
299,615
26.1%
27.6%
26.7%
0.8%
173,591
116,346
49.2%
12.7%
10.4%
2.3%
10,033
83,536 (88.0%)
0.7%
7.5% (6.7%)

Page 2

First Quarter 2014

Earnings Release

CEO STATEMENT
Mr. Eugenio Garza, Javers Chief Executive Officer commented, Javer started the year
strong as government support for the sector coupled with a relatively benign operating
environment more than offset the still sluggish underlying demand trends. The
combination of these factors helped us achieve significant growth, both in revenues and
operating earnings, with a lower than anticipated cash burn during the period. Subsidy
availability was widespread across our geographic regions and allowed us to convert a
higher percentage of our foot traffic into sales, along with stronger pricing. Furthermore,
we more than doubled subsidized sales year-over-year and under the new rules which had
much more flexibility with regard to verticality; notably, vertical housing absorbed just
54% of the total subsidies during 1Q14 compared to 100% in 1Q13.
Our key bottleneck continues to be inventory availability, which we recognize is at a
historic low, as we rush to activate as many of our subsidy targeted land reserves as we
can into this favorable window. Home starts in 1Q14 amounted to 6,079 units, a record
level since 2011 as several permitting and infrastructure bottlenecks in key developments
were resolved during the quarter. We also capitalized on a number of land acquisition
opportunities during 1Q14, either directly resulting from or as a second order effect from
the on-going restructuring of our three main competitors.
Land Capex for the quarter was Ps. 248.4 million, which was strategically balanced from a
product segment and geographic perspective. Nevertheless, we continue to be cautious
of the ever-changing nature of our business and therefore have selected land banks with
maximum flexibility to face any potential changes in the subsidy program or our
competitive landscape in 2015 and beyond. Although we were slightly cash flow negative
for the quarter, we maintained a highly liquid balance sheet to capitalize on opportunities
that may continue to present themselves in the on-going restructuring and repositioning
of assets in the business.
We believe Javer is best positioned to take advantage of these opportunities thanks to its
financial strengths and sound operations. Nonetheless, we continue to operate the
company under the assumption that none of these opportunities will transpire. Javer
remains focused on proactively managing its pricing, margins, and working capital cycle to
generate high LTM pre-tax ROIC of 21.6% and positive LTM FCF of Ps. 380.9 million. We
believe that by having a strong team, based on a conservative and balanced approach, we
can meet these financial targets regardless of the market environment in order to
increase the value of Javers stakeholders.

Page 3

First Quarter 2014

Earnings Release

Looking ahead, the government continues its efforts to boost the sector, with a special
subsidy program launched in April 2014 to provide Ps. 500 million for workers earning
below 5 GMW, This program, which we expect will boost demand, is intended for the
acquisition of new and used homes in the U1 and U2 zones in 11 cities, including areas
surrounding Monterrey, Guadalajara, Queretaro and State of Mexico. In addition,
authorities approved the unemployment insurance program with a special sub-account
funded with 3% of monthly employer contributions. It is important to note that this
measure will not impact workers capacity to acquire a home nor their loan conditions;
however, if the need arises, and the worker utilizes these funds for unemployment
benefits, they may require more time to gather the necessary Infonavit points to apply for
a loan.

Page 4

First Quarter 2014

Earnings Release

UNITS SOLD AND NET REVENUES*

Equivalent Units Sold

1Q14

Affordable Entry Level

Middle Income
Residential
TOTAL
Revenues (Figures in
thousand pesos)
Affordable Entry Level
Middle Income
Residential
Total Home Sales
Commercial Lot Sales
TOTAL

% of units

2,359
1,909
150
4,418
1Q14
552,648
636,196
156,162
1,345,007
25,652
1,370,659

53.4%
43.2%
3.4%
100.0%
% of
revenues
40.3%
46.4%
11.4%
98.1%
1.9%
100.0%

1Q13
2,102
1,577
132
3,811
1Q13
455,977
525,728
127,191
1,108,896
12,360
1,121,256

% of units

Variance

55.2%
41.4%
3.5%
100.0%

12.2%
21.1%
13.6%
15.9%

% of
revenues
40.7%
46.9%
11.3%
98.9%
1.1%
100.0%

Variance
21.2%
21.0%
22.8%
21.3%
107.5%
22.2%

* Low Income units have selling prices below Ps. 260,000. Middle Income units have selling prices
between Ps. 260,000 and Ps. 560,000. Residential units have selling price exceeding Ps. 560,000

Units Sold: Units sold increased 15.9% to 4,418 units in 1Q14,

compared to 3,811 units in 1Q13. In terms of revenues, all
segments registered improvements: the residential segment
increased 22.8%, while the middle income and affordable entry
level (AEL) segments rose 21.0% and 21.2%, respectively. AEL sales
represented 53.4% of total homes titled and 40.3% of total
revenues in 1Q14, compared to 55.2% and 40.7%, respectively, in
1Q13.
1Q14 AVERAGE SALES PRICE

Commercial lot sales increased 107.5% to Ps. 25.7 million in 1Q14,

from Ps. 12.4 million in 1Q13, as a result of greater lot sales during
the period.

Average Sales Price per

Unit

1Q14
AEL
Middle Income
Residential
Average Sales Price per Unit

234.3
333.3
1,041.1
304.4

1,041.1

Residential
Middle Income

Prices: In 1Q14, Javers average home sales price increased to Ps.

304.4 thousand, from Ps. 291.0 thousand in 1Q13.

304.4

AEL

1Q13
216.9
333.4
963.6
291.0

Page 5

333.3
234.3

First Quarter 2014

Earnings Release

Mortgage Provider Mix: During 1Q14, Infonavit continued to be Javers primary mortgage
provider, representing 97.0% of total units titled (including Cofinavit), compared to 96.4%
under the same criteria in 1Q13. Cofinavit represented 4.1% in 1Q14, given that this
product is utilized to acquire residential homes. Typically, workers get their Infonavit loan
which can then be supplemented by a bank loan.

Mortgage Provider

1Q14

% of total

1Q13

% of total

Infonavit
Fovissste
Cofinavit
Banks / Sofoles
Other
TOTAL

4,106
47
183
59
23
4,418

92.9%
1.1%
4.1%
1.3%
0.5%
100.0%

3,663
92
11
15
30
3,811

96.1%
2.4%
0.3%
0.4%
0.8%
100.0%

Subsidies: During 1Q14, subsidies represented 54.4% of total units sold, compared to
30.0% in 1Q13; vertical housing absorbed just 54.0% of the total subsidies during the
period compared to 100% in 1Q13.
1Q14
2,403

Subsidies
1Q14
Vertical Housing

1,297

1Q13
1,144

% of total
subsidies
54.0%

1Q13
1,144

Variance
110.1%
% of total
subsidies
100.0%

Page 6

First Quarter 2014

Earnings Release

GROSS PROFIT / MARGIN

Gross Profit (Figures in thousand pesos) 1Q14
Home Sales
357,078
Commercial Lot Sales
20,687
TOTAL
377,765
Gross Margin (%)
Home Sales
Commercial Lot Sales
TOTAL

1Q13
287,538
12,077
299,615

26.5%
80.6%
27.6%

25.9%
97.7%
26.7%

Variance
24.2%
71.3%
26.1%

0.6 pp
(17.1 pp)
0.8 pp

Gross Profit rose 26.1% to Ps. 377.8 million in 1Q14, from Ps. 299.6
million in 1Q13. This increase was mainly due to greater sales volumes
achieved during the quarter coupled with higher prices.
Gross Margin increased 0.8 percentage points in 1Q14 to 27.6%
compared to 26.7% in 1Q13, given the increase in our home sales margin
as a result of the effects described above.
EBITDA / MARGIN

(Figures in thousand pesos)

SG&A
as a % of Sales

1Q14

1Q13

213,350
15.57%

193,269
17.24%

10.4%
(1.7pp)

EBITDA
EBITDA Margin

173,591
12.7%

116,346
10.4%

49.2%
2.3 pp

Variance

Selling, General and Administrative Expenses increased 10.4% in 1Q14,

compared to 1Q13; however as a percentage of sales, SG&A decreased
1.7 percentage points driven by the Companys efforts to control
expenses.
EBITDA increased 49.2% in 1Q14 to Ps. 173.6 million, from Ps. 116.3
million in 1Q13; EBITDA margin increased 2.3 percentage points, mainly
due to the increase in sales volume, a greater gross margin and the
reduction in SG&A as percentage of sales.

Page 7

First Quarter 2014

Earnings Release

COMPREHENSIVE COST OF FINANCING

1Q14

(Figures in thousand pesos)

Interest expense
Interest income
FX gains / losses

NCFR
Net gain (loss) on cash flow hedges

1Q13

Variance

137,175
8,519 8,991 -

125,986
4,221
154,907

8.9%
101.8%
(94.2%)

119,665 -

33,142

(461.1%)

15,118 -

49,035

69.2%

Net Income decreased from Ps. 83.5 million in 1Q13 to Ps. 10.0 million in 1Q14. During
1Q13, the Company registered a Ps. 154.9 million gain in the interest income line due to
the depreciation of the peso, compared to Ps. 8.9 million during 1Q14, which explains the
variation for the period.
Comprehensive Income, which includes MTM gains and losses on derivatives to hedge
foreign exchange exposure on debt, decreased to Ps. (15.1) million in 1Q14.
ASSETS / LIABILITIES
Cash and cash equivalents were Ps. 1,270.3 million as of March 31, 2014.
WORKING CAPITAL

(Figures in thousand pesos)

Trade Accounts Receivable
Inventory (Work in Progress)
Inventory (Land Reserves)
Suppliers
Customer Advances
Working Capital
LTM Sales
LTM Cost of Goods Sold

March 2014
Amount
Days
1,874,333
120
2,222,745
199
1,064,953
95
1,100,063
99
8,624
1
4,053,344
316
5,670,893
4,063,407

December 2013
Amount
Days
1,851,431
124
2,219,763
208
1,008,796
94
1,120,726
105
5,200
0.5
3,954,064
321
5,421,490
3,892,154

Javer reported an improvement in its working capital cycle during the period ended March
31, 2014 as a result of a shorter collection period.

Page 8

First Quarter 2014

Earnings Release

FREE CASH FLOW

(Figures in thousand pesos)

1Q14

1Q13

EBITDA
(+) Land included in COGS
(+-) Changes in Working Capital
Cash Interest
Cash Taxes
Land CAPEX
Equipment CAPEX
Free Cash Flow

173,591
107,632
84,338
(103,882)
(43,287)
(248,363)
(2,627)
(32,598)

116,346
91,470
(49,228)
(105,320)
(30,170)
(107,540)
(3,373)
(87,815)

Javer reported a slightly negative free cash flow of Ps. 32.6 million driven by the
acquisitions of land and the ramp-up in construction to prepare the future titling pipeline.
DEVELOPMENT PIPELINE

Home Starts
Home Completions
Homes Titled
Available Finished Home Inventory
Homes under active development (incl. AFHI)
Total Land Reserves

1Q12
4,989
4,264
4,438
2,383
7,690
128,071

2Q12
3,320
3,692
4,483
1,592
6,869
127,487

3Q12
3,597
3,935
4,161
1,366
6,886
122,962

4Q12
2,364
4,569
4,452
1,483
6,013
117,804

1Q13
2,671
3,386
3,811
1,058
6,444
113,998

2Q13
3,280
3,688
4,311
435
6,103
109,703

3Q13
3,021
4,090
4,227
298
5,530
105,531

4Q13
3,944
4,937
5,039
196
5,189
94,061

1Q14
6,079
4,333
4,418
111
7,212
90,855

Home Starts grew 127.6% to 6,079 in 1Q14, compared to 2,671 in 1Q13, reflecting the
ramp-up in construction activity at the Companys developments derived from the
increase in the 2014 Federal budget for subsidies and loans.
Home Completions in 1Q14 increased 28.0% to 4,333 from 3,386 in 1Q13, in line with the
Companys construction plan for 2014.
Finished Home Inventory decreased to 111 units as of March 31, 2014, from 196 units
reported as of December 31, 2013, since home completions were not enough to replenish
Javers finished home inventory to more normalized levels.

Page 9

First Quarter 2014

Earnings Release

LAND RESERVES
As of March 31, 2014, the Companys total land bank reached approximately 90,855 units,
of which approximately 55% were owned land reserves and 45% were held through land
trust agreements.

Page 10

First Quarter 2014

Earnings Release

DEBT AND DERIVATIVES EXPOSURE

Short Term Debt (Figures in thousand pesos)
Notes Payable to Financial Institutions
Current Portion of Long Term Debt
TOTAL

Derivatives
111,593
111,593

Long Term Debt (Figures in thousand pesos)

High Yield Bond
Capital Leases
Less Current Portion
TOTAL
TOTAL DEBT
CASH AND CASH EQUIVALENTS
MTM DERIVATIVE POSITION
NET DEBT

3,768,209
51,973
111,593
3,708,589

Coupon Swaps (TIIE)

Coupon Swaps (Fix)
Principal Hedges (Forwards)
Embedded derivatives asset
TOTAL

Debt Maturity Profile

3,820,182
$ 1,270,331
208,443
2,341,408

TOTAL DEBT** / LTM EBITDA

NET DEBT / LTM EBITDA
LTM EBITDA / LTM INTEREST EXPENSE
** Total debt= Total Debt - MTM Derivative Position

4.24
2.75
1.67

Notional
FMV (Ps$) FMV (US$)
(US$)
156 Ps.
173,111
13,231
120 Ps.
26,529
2,028
6
Ps.
886
68
7,917
Ps.
208,443
15,326

3,685

112

15

2014

2015

2016

2017

2021

As of March 31, 2014, Javer continued to possess available credit facility lines in excess of
Ps. 1,013.0 million. These credit lines could be used at any time as long as Javer is in
compliance with its bond covenants.
As of March 31, 2014, Javer maintained derivative positions to hedge, for the next three
years, 84% of the Companys currency exposure related to the 2021 High Yield Bond
coupons. As some of our derivatives have evolved, we have included additional hedges to
guarantee 5 years of protection; out of the US$ 320 million total notes, 72% maintained a
hedge for two more years to be in line with our hedging strategy. The Company also holds
a derivate position to hedge 100% of the coupon and the remaining principal amount of
the 2014 Notes.
As of March 31, 2014, the Company possessed US$ 23 million in available credit lines from
derivative counterparties to finance any potential negative carrying values of the
Companys derivative contracts.
As of March 31, 2014, Total Debt / LTM EBITDA reached 4.24x; Net Debt to EBITDA was
2.75x; EBITDA interest coverage reached 1.67x.

Page 11

First Quarter 2014

Earnings Release

About Javer:
Servicios Corporativos Javer S.A.P.I. de C.V. is one of the largest privately-owned housing
development companies in Mexico, specializing in the construction of low-income, middle
income and residential housing in the Northern region of Mexico. The Company, which is
headquartered the city of Monterrey, in the state of Nuevo Leon, began operations in
1973. Javer is the second-largest supplier of Infonavit homes in the country, the largest
supplier of Infonavit loans in the state of Nuevo Leon and Jalisco with a 16.3% and 17.7%
market share, respectively. The Company operates in the states of Nuevo Leon,
Aguascalientes, Tamaulipas, Jalisco, Queretaro and State of Mexico.
During 2013, the Company reported revenues of Ps. 5,421.5 million and sold a total of
17,388 units.
Disclaimer:
This press release may include forward-looking statements. These forward-looking
statements include, without limitation, those regarding Javers future financial position
and results of operations, the Companys strategy, plans, objectives, goals and targets,
future developments in the markets in which Javer participates or are seeking to
participate or anticipated regulatory changes in the markets in which Javer operates or
intends to operate.
Javer cautions potential investors that forward looking statements are not guarantees of
future performance and are based on numerous assumptions and that Javers actual
results of operations, including the Companys financial condition and liquidity and the
development of the Mexican mortgage finance industry, may differ materially from the
forward-looking statements contained in this press release. In addition, even if Javers
results of operations are consistent with the forward-looking statements contained in this
press release, those results or developments may not be indicative of results or
developments in subsequent periods.
Important factors that could cause these differences include, but are not limited to: risks
related to Javers competitive position; risks related to Javers business and Companys
strategy, Javers expectations about growth in demand for its products and services and to
the Companys business operations, financial condition and results of operations; access
to funding sources, and the cost of the funding; changes in regulatory, administrative,
political, fiscal or economic conditions, including fluctuations in interest rates and growth
or diminution of the Mexican real estate and/or home mortgage market; increases in
customer default rates; risks associated with market demand for and liquidity of the
notes; foreign currency exchange fluctuations relative to the U.S. Dollar against the
Mexican Peso; and risks related to Mexicos social, political or economic environment.

Page 12

First Quarter 2014

Earnings Release

Servicios Corporativos Javer, S.A.P.I de C.V. and Subsidiaries

Consolidated Balance Sheets
As of March 31, 2014 and December 31, 2013
(In thousands of Mexican pesos (Ps.))
Assets
Current assets:
Cash and cash equivalents
Trade receivables net
Inventories (Note 1)
Prepaid expenses
Other current assets
Total current assets
Trade receivables
Land held for future development
Improvements, machinery and equipment net
Derivative financial instruments (Note 3)
Other non-current assets
Total
Liabilities and stockholders equity
Current liabilities:
Current portion of long-term debt (Note 2)
Trade accounts payable
Due to related parties
Advances from customers
Income taxes payable
Other liabilities
Total current liabilities
Long-term debt (Note 2)
Real estate liabilities
Employee retirement obligations
Deferred income taxes
Total liabilities
Commitments and contingencies
Stockholders equity:
Capital stock
Retained earnings
Valuation of derivative financial instruments (Note 3)
Cumulative actuarial gain/(loss)
Total stockholders equity
Total

March 31,
2014

December 31,
2013

Ps. 1,270,331
1,835,599
2,222,745
98,784
239,420
5,666,879
38,734
1,064,953
215,131
208,443
98,256
Ps. 7,292,396

Ps. 1,309,469
1,809,176
2,219,763
95,293
245,457
5,679,158
42,255
1,008,796
221,201
126,787
86,256
Ps. 7,164,453

Ps. 111,593
935,752
6,478
8,624
384,684
1,447,131
3,708,591
164,311
37,993
819,494
6,177,520

Ps. 111,663
931,738
9,457
5,200
17,799
240,684
1,316,541
3,681,313
188,989
36,388
821,261
6,044,492

734,806
301,251
80,103
(1,284)
1,114,876
Ps. 7,292,396

734,806
291,218
95,221
(1,284)
1,119,961
Ps. 7,164,453

The accompanying notes are part of the consolidated financial statements.

Page 13

First Quarter 2014

Earnings Release

Servicios Corporativos Javer, S.A.P.I de C.V. and Subsidiaries

Consolidated Statements of Comprehensive Income
For the three month period ended March 31, 2014 and 2013.
(In thousands of Mexican pesos (Ps.)

Revenues
Costs
Gross profit
Selling and administrative expenses
Other expenses net
Net comprehensive financing result
Income before income taxes
Income taxes
Net income
Other comprehensive loss item:
Net (loss) gain on cash flow hedges
Total comprehensive (loss) income

1Q14

1Q13

Ps. 1,370,659
992,894

Ps. 1,121,256
821,641

377,765
213,350
(441)
119,665
45,191
35,158
10,033

299,615
(193,269)
635
33,142
140,123
56,587
83,536

(15,118)
Ps.(5,085)

(49,035)
Ps.34,501

The accompanying notes are part of the consolidated financial statements.

Page 14

First Quarter 2014

Earnings Release

Servicios Corporativos Javer, S.A.P.I de C.V. and Subsidiaries

Consolidated Statements of Changes in Stockholders Equity
For the three month ended March 31, 2014
(In thousands of Mexican pesos (Ps.))

Balance as of December 31, 2013

Comprehensive income
Balance as of March 31, 2014

Capital
Stock
Ps. 734,806
Ps. 734,806

Retained
Earnings
(Accumulated
Deficit)
Ps. 291,218
10,033
Ps. 301,251

Valuation of
Derivative
Financial
Instruments
Ps. 95,221
(15,118)
Ps. 80,103

Cumulative
actuarial
gain/(loss)
Ps. (1,284)
(1,284)

The accompanying notes are part of the consolidated financial statements.

Page 15

Total
Stockholders
Equity
Ps.1,119,961
(5,085)
Ps. 1,114,876

First Quarter 2014

Earnings Release

Servicios Corporativos Javer, S.A.P.I de C.V. and Subsidiaries

Consolidated Statements of Cash Flows
For the three month period ended March 31, 2014 and 2013.
(In thousands of Mexican pesos (Ps.))
March 31,
2014
Operating activities:
Income (Loss) before income taxes
Items related to investing activities:
Depreciation and amortization
Loss of non-current assets
Unrealized exchange gain
Items related to financing activities:
Effects of valuation of derivative financial instruments
Assets held for sale
Interest expense
(Increase) decrease in:
Trade receivables net
Inventories
Other current assets
Prepaid expenses
Increase (decrease) in:
Trade accounts payable
Due to related parties
Advances from customers
Other liabilities
Net cash provided by operating activities
Investing activities:
Improvements, machinery and equipment
Other assets
Net cash (used in) provided by investing activities

Ps. 45,191

Ps. 140,123

9,176

10,000

8,818

(158,315)

(12,894)

10,662

128,655
178,946

121,765
124,235

(22,902)
(56,712)
(48,688)
(15,491)

(67,007)
62,607
(32,433)
3,102

(20,664)
(2,979)
3,424
58,977
73,911

(100,343)
1,282
15,585
21,055
21,879

(2,627)

(3,373)
(1,000)
(4,373)

(2,627)

Financing activities:
Proceeds from long-term debt
Payments of long-term debt
Interest paid
Net cash provided by (used in) financing activities
Effects of exchange gains or losses on cash and cash equivalents
Cash:
Net increase in cash
Cash at beginning of year
Cash at end of year

March 31,
2013

(7,620)
(103,882)
(111,502)
1,080

622,940
(13,967)
(105,321)
503,652

(39,138)
1,309,469

521,158
416,907

Ps. 1,270,331

Ps. 938,065

The accompanying notes are part of the consolidated financial statements.

Page 16

First Quarter 2014

Earnings Release

Servicios Corporativos Javer, S.A.P.I. de C.V. and Subsidiaries

Notes to Consolidated Financial Statements
As of March 31, 2014 and December 31, 2013
(In thousands of Mexican pesos (Ps.))
Inventories

Land under development

Housing units under construction
Urbanization and related equipment

As of
March 31,
2014
Ps. 768,609
383,445
1,070,691
Ps. 2,222,745

As of December
31, 2013
Ps. 833,790
282,997
1,102,976
Ps. 2,219,763

As of
March 31,
2014
Ps. 2,671,852
386,860
626,700
82,796

As of December
31, 2013
Ps. 2,645,616
386,180
625,105
82,677

Long-term debt

Senior Notes US$210 million refinanced 2021

Senior Notes US$30 million 2021
Senior Notes US$50 million 2021
Remaining original Senior Notes US$210 million 2014
Capital lease agreements to acquire molds, bearing annual
fixed interest rates of 12.34%, with various maturities
through 2015.
Capital lease agreements to acquire trucks bearing annual
fixed interest rate of 12.34%, with various maturities
through 2017.
Capital lease agreements to acquire vehicles, bearing annual
fixed interest rate of 10.52 %, with various maturities
through 2017.
Capital lease agreements to acquire computers, bearing
annual fixed interest rate of 7.01%, whit various maturities
through 2016.
Loan to pay suppliers bearing fixed interest rate of 11.80%,
with various maturities through 2015.
Less Current portion
Long-term debt

13,894

17,105

3,547

3,886

14,772

14,358

16,922

14,574

2,841

3,475

3,820,184
(111,593)
Ps. 3,708,591

3,792,976
(111,663)
Ps. 3,681,313

As of March 31, 2014, long-term debt maturities were as follows:

2015
2016
2017
April 6, 2021

Ps.14,575
6,923
1,681
3,685,412
Ps. 3,708,591

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First Quarter 2014

Earnings Release

Derivative financial instruments

The Company designated the combined derivative financial instruments as cash flow hedges. The
fair value of the Companys derivative financial instruments as of March 31, 2014 was $208,443 as
further detailed below (notional amounts in millions):

Instrument
Combined derivative financial instruments
Forwards
Embedded derivatives asset

Type of
hedge

Notional

March 31,
2014

Cash flow
Cash flow

US$277
US$6

Ps.199,640
886
7,917
Ps.208,443

Total asset

* * * * *

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