JAVER REPORTS FINANCIAL RESULTS FOR

SECOND QUARTER 2012

Monterrey, Nuevo Leon, Mexico July 24, 2012 - Servicios Corporativos
Javer S.A.P.I. de C.V., (Javer or the Company), one of the largest privatelyowned housing development companies in Mexico, today announced financial
results for the second quarter and first half periods ended June 30, 2012.
EXECUTIVE SUMMARY
2Q12
Homes titled
Net Revenues (Ps.mm)
Gross Profit (Ps.mm)
Gross Margin
EBITDA (Ps.mm)
EBITDA Margin
Net Income
Net Margin
Comprehensive income

2Q11

4,482
Ps.
Ps.
Ps.
Ps.
Ps.

1,224,277
340,370
27.8%
189,415
15.5%
(74,604)
(6.1%)
(22,957)

3,886
Ps.
Ps.
Ps.
Ps.
Ps.

1,093,053
337,418
30.9%
187,277
17.1%
60,564
5.5%
70,309

Variance

6M12

15.3%
12.0%
0.9%
(3.1%)
1.1%
(1.7%)
(223.2%)
(11.6%)
(132.7%)

6M11

8,920
Ps.
Ps.
Ps.
Ps.
Ps.

2,629,587
692,933
26.4%
394,090
15.0%
128,317
4.88%
57,437

6,893
Ps.
Ps.
Ps.
Ps.
Ps.

1,953,857
605,065
31.0%
314,504
16.1%
116,202
5.9%
100,991

Variance
29.4%
34.6%
14.5%
(4.6%)
25.3%
(1.1%)
10.4%
(1.1%)
(43.1%)

Net Revenues in the second quarter 2012 increased 12.0% to Ps. 1,224.3
million, from Ps. 1,093.1 million in 2Q11, driven primarily by 15.3%
growth in homes titled. For the first half 2012, the Company posted a
34.6% increase in revenues to Ps. 2,629.6 million, from Ps. 1,953.9
million in the first half 2011, mainly due to a 29.4% increase in
accumulated volume (from 6,893 to 8,920 units sold).

EBITDA in the second quarter 2012 increased 1.1% to Ps. 189.4 million,
from 187.3 million in 2Q11. For the first half 2012, EBITDA grew
25.3% to Ps. 394.1 million, from Ps. 314.5 million in 1H11, primarily
due to the increase in accumulated volume, partially offset by a more
Affordable Entry Level focused mix, which carries lower gross margins.

Net Income decreased to Ps. (74.6) million in 2Q12, from 60.6 million
in 2Q11, mainly due to a Ps. 164.4 non-cash charge in the interest
expense line due to foreign exchange charges related to U.S. dollardenominated debt. For the first half 2012, net income increased 10.4% to
Ps. 128.3 million, from Ps. 116.2 million in 2011 given the effects
described above.

Investor Relations Contacts:

In Monterrey:
Eugenio Garza, Chief Financial Officer
Tel: +52 81 1133-6684
eugenio.garza@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
javer@i-advize.com
For more information, visit:
http://www.javer.com.mx/inversionistasHome.html

Second Quarter 2012 Earnings Release

CEO STATEMENT
Mr. Roberto Russildi, Javers Chief Executive Officer, commented, During the second quarter,
Javer continued to demonstrate a tremendous amount of operational flexibility that has allowed the
Company to navigate the variable nature of demand experienced in Javers targeted markets over
the past few quarters. This variability stems from quickly changing subsidy availability and priority
allocation mechanisms. As stated in the past, Javers strategy is to produce targeted levels of
absolute profitability in terms of EBITDA under a cash flow neutral environment. Executing this
strategy entails a great degree of discipline in terms of synchronizing housing starts, inventory
levels, and sales across the Companys various geographies, developments, but most importantly,
balancing Javers prototype mix and quickly adjusting prices and margins to displace the volume
needed to achieve both objectives. During the second quarter, the Company was able to deliver on
both absolute profitability, as well as free cash flow despite one of the most difficult quarters for
subsidy planning in years.
During April, subsidies were practically non-existent in Javers main state of Nuevo Leon, given
origination levels during the first three months of 2012 basically exhausted resources originally
targeted for Nuevo Leon. Although the Company did expect additional resources to flow through
the regularly scheduled reallocation process, both from institutions outside of Infonavit, as well as
from other states that were not on track to meet quotas, those resources did not arrive until late May
in Nuevo Leon, and were only available for a short time. In the state of Jalisco, subsidies have been
present basically throughout 2012, but the target for the year has been met very soon and further
quantities will be subject to the reallocation process. Notwithstanding these issues, Javer managed
to meet the Companys absolute profitability target during the quarter despite very choppy subsidy
availability to displace middle income prototypes, as well as subsidy qualifying prototypes in
Jalisco.
Although challenges remain, Javer is confident that given the Companys accomplishments thus far
and the manner in which the business has reacted and adapted, the Company will continue to
deliver superior performance and returns to all stakeholders.

Page 2

Second Quarter 2012 Earnings Release

UNITS SOLD AND NET REVENUES*

2Q12
Equivalent Units Sold
Low Income
Middle Income
Residential
TOTAL

% of
revenues

2Q11

2,853
1,551
78
4,482

% of
Variance
revenues

2,531
1,267
88
3,886

12.7%
22.4%
(11.4%)
15.3%

6M12

% of
revenues

5,625
3,132
163
8,920

6M11

% of
Variance
revenues

4,649
2,059
185
6,893

21.0%
52.1%
(11.9%)
29.4%

Revenues (Ps.mm)
Low Income

618,523

50.5%

566,031

51.8%

9.3%

Middle Income

481,688

39.3%

383,433

35.1%

25.6%

6.0%
95.9%

108,369
Ps. 1,057,833

9.9%
96.8%

4.1%
35,220
100.0% Ps. 1,093,053

Residential
Total Home Sales

Ps.

73,282
1,173,493

Commercial Lot Sales

TOTAL

Ps.

50,784
1,224,277

3.2%
100.0%

1,201,179

45.7%

1,030,840

52.8%

950,315

36.1%

632,586

32.4%

50.2%

(32.4%)
166,520
10.9% Ps. 2,318,014

6.3%
88.2%

214,840
Ps. 1,878,266

11.0%
96.1%

(22.5%)
23.4%

3.9%
100.0%

312.2%
34.6%

44.2%
12.0%

311,573
Ps. 2,629,587

11.8%
75,591
100.0% Ps. 1,953,857

16.5%

* 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.

2Q12

2Q11

6M12

6M11

Average Sales Price per Unit (in thousands)

Low Income
Middle Income
Residential
TOTAL

Ps.
Ps.
Ps.
Ps.

216.8
310.6
939.5
261.8

Ps.
Ps.
Ps.
Ps.

223.6
302.6
1231.5
272.2

Ps.
Ps.
Ps.
Ps.

213.5
303.4
1,021.6
259.9

Ps.
Ps.
Ps.
Ps.

221.7
307.2
1161.3
272.5

Units Sold: The Company sold 4,482 units in second quarter 2012 compared to 3,886 units in the
same quarter 2011, representing an increase of 15.3%. The middle income and low income segment
posted increases in revenues of 25.6% and 9.3%, respectively, while the residential segment
reported a 32.4% decrease. Low income sales represented 63.7% of total units titled and 50.5% of
total revenues in 2Q12, compared to 65.1% and 51.8%, respectively, in second quarter 2011. For
the first half of the year, units titled increased 29.4% to 8,920, from 6,893 in 1H11. The greatest
increase in revenues was registered in the middle income segment with 50.2% growth follow by the
low income segment with 16.5%; conversely, the residential segment decreased 22.5%. Low
income sales represented 63.1% of total units sold and 45.7% of total revenues in the first six
months 2012, compared to 67.4% and 52.8%, respectively, in 1H11.
Prices: During the second quarter 2012, Javers average sales price decreased to Ps. 261.8 thousand
from 272.2 thousand in 2Q11. For the first half 2012, the average overall sales price decreased to
Ps. 259.9 thousand from Ps. 272.5 thousand in 2011.
Commercial lot sales grew 44.2% to Ps. 50.8 million in 2Q12, from Ps. 35.2 million in 2Q11. For
the first half 2012, commercial lot sales registered a 312.2% increase to Ps. 311.6 million, from 75.6
million in 1H11, as a result of a higher number of large lot sales.

Page 3

Second Quarter 2012 Earnings Release

Mortgage Provider Mix: During second quarter 2012, Infonavit continued to be Javers primary
mortgage provider, representing 96.7% of total units titled compared to 88.6% in 2Q11. For the first
half 2012, a similar pattern took place, with 95.7% of sales originating from Infonavit compared to
90.6% in the same period 2011.
Mortgage Provider
Infonavit
Fovissste
Cofinavit
Banks / Sofoles
Other
TOTAL

2Q12

% of total

2Q11

% of total

6M12

% of total

6M11

% of total

4,332
51
13
36
50
4,482

96.7%
1.1%
0.3%
0.8%
1.1%
100.0%

3,443
76
82
179
106
3,886

88.6%
2.0%
2.1%
4.6%
2.7%
100.0%

8,538
122
34
125
101
8,920

95.7%
1.4%
0.4%
1.4%
1.1%
100.0%

6,247
95
122
325
104
6,893

90.6%
1.4%
1.8%
4.7%
1.5%
100.0%

GROSS PROFIT / MARGIN

2Q12

2Q11

303,543 Ps.
36,827 Ps.
340,370 Ps.

318,667
18,751
337,418

Variance

6M12

6M11

573,331 Ps.
119,602 Ps.
692,933 Ps.

550,235
54,830
605,065

Variance

Gross Profit (PS.mm)

Home Sales
Ps.
Commercial Lot Sales Ps.
TOTAL
Ps.
Gross Margin (%)
Home Sales
Commercial Lot Sales
TOTAL

25.9%
72.5%
27.8%

30.1%
53.2%
30.9%

(4.7%) Ps.
96.4% Ps.
0.9% Ps.

(4.3 pp)
19.3 pp
(3.1 pp)

24.7%
38.4%
26.4%

29.3%
72.5%
31.0%

4.2%
118.1%
14.5%

(4.6 pp)
(34.1 pp)
(4.6 pp)

Gross Profit in the second quarter 2012 remained relatively flat at Ps. 340.4 million when
compared to the Ps. 337.4 million reported in 2Q1. This was driven by a decline in housing sales
profits given the decrease in the average overall price, as the Affordable Entry level segment
represented a higher proportion of the sales mix, offset by a higher participation of commercial lot
sales. For the first half 2012, gross profit increased 14.5% to Ps. 692.9 million, from Ps. 605.1
million in 1H11, mainly due to the sharp increase in commercial lot sales, along with the
accumulated volume of housing sales.
Gross Margin decreased 3.1 percentage points in 2Q12 and 4.6 percentage points in the first half
2012, mainly due to the effects described above.

Page 4

Second Quarter 2012 Earnings Release

EBITDA / MARGIN

2Q12

2Q11

Ps.mm
Ps.
as a % of Sales

163,818 Ps.
13.38%

167,260
15.30%

EBITDA
Ps.mm
Ps.
EBITDA Margin

189,415 Ps.
15.5%

187,277
17.1%

Variance

6M12

6M11

Variance

(2.1%) Ps.
(1.9 pp)

327,086 Ps.
12.44%

321,706
16.47%

1.7%
(4.0 pp)

1.1% Ps.
(1.7 pp)

394,090 Ps.
15.0%

314,504
16.1%

25.3%
(1.1) pp

SG&A

Selling, General and Administrative Expenses decreased 2.1% in second quarter 2012 as a result
of cost reduction measures. For the first six months 2012, SG&A increased 1.7%; as a percentage of
sales, SG&A decreased 4.0 percentage points in 1H12, primarily driven by operating leverage
achieved through greater sales volume.
EBITDA increased 1.1% to Ps. 189.4 million in the second quarter 2012, from Ps. 187.3 million in
2Q11 given higher volumes, offset by a more Affordable Entry Level-focused sales mix. EBITDA
margin in 2Q12 decreased 1.7 percentage points mainly due to the contraction in gross margins. For
the first half 2012, EBITDA increased 25.3% driven by the Companys operating leverage.
EBITDA margin decreased 1.1 percentage points in 1H12.

2Q12

2Q11
137,724
747
66,968

(7.7%) Ps.
670.0% Ps.
145.4% Ps.

250,181 Ps.
-11,281 Ps.
-88,883 Ps.

239,435
-2,843
-150,962

70,009

308.2% Ps.

150,017 Ps.

85,630

Interest expense
Interest income
FX gains / losses

Ps.
Ps. Ps.

127,157 Ps.
5,752 Ps. 164,357 Ps. -

NCFR

Ps.

285,762 Ps.

Variance

6M12

6M11

Variance
4.5%
296.8%
-41.1%
75.2%

Net comprehensive financing result increased 308.2% in 2Q12 to Ps. 285.8 million, from Ps. 70.0
million in 2Q11 mainly due to a Ps. 164.4 million non-cash charge related to the depreciation of the
peso and its effect on the Companys U.S. dollar-denominated debt. For the first half 2012, net
comprehensive financing result increased 75.2% to Ps. 150.0 million, from Ps. 85.6 million in the
first half 2011.
Net Income decreased to Ps. (74.6) million in the second quarter 2012, from Ps. 60.6 million in
2Q11. For the first half 2012, net income registered a 10.4% increase to Ps. 128.3 million, from Ps.
116.2 million in 1H11.
Comprehensive Income, which includes MTM gains and losses on derivatives to hedge foreign
exchange exposure on debt, decreased Ps. (23.0) million in 2Q12; conversely, for the first half
2012, comprehensive income increased Ps. 57.4 million.

Page 5

Second Quarter 2012 Earnings Release

ASSETS / LIABILITIES
Cash and cash equivalents decreased to Ps. 363.2 million as of June 30, 2012, from Ps. 384.8
million as of June 30, 2011.

WORKING CAPITAL

Trade Accounts Receivable

Inventory (Work in Progress)
Inventory (Land Reserves)
Suppliers
Customer Advances
Working Capital

Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

June 2012
Ps.mm
Days
1,815,866
123
2,471,628
235
1,212,832
115
1,220,571
116
7,568
1
4,272,187
356

LTM Sales
LTM Cost of Goods Sold

Ps.
Ps.

5,394,304
3,834,809

Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

June 2011
Ps.mm
Days
1,755,788 123
2,257,683 221
1,070,268 105
1,000,421
98
7,459
1
4,075,859 351

Ps.
Ps.

5,187,246
3,710,278

Javer experienced a steady working capital cycle in general terms for the period ended June 30,
2012 when compared to the same period 2011, as slightly higher inventory levels were financed by
slightly higher supplier balances.

FREE CASH FLOW

2Q12
EBITDA
(+) Land included in COGS
(+-) Changes in Working Capital
Cash Interest
Cash Taxes
Land CAPEX
Equipment CAPEX
Free Cash Flow

Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

189,415
108,205
(142,507)
(105,390)
(44,721)
(51,586)
2,120
(44,464)

2Q11
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

187,277
69,570
2,165
(154,481)
(29,368)
(103,417)
(7,301)
(35,555)

6M12
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

394,091
211,620
36,278
(208,831)
(101,716)
(315,629)
8,163
23,976

6M11
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

314,504
137,674
(279,957)
(232,763)
(89,351)
(262,588)
(10,011)
(422,492)

For the first half 2012, the Company reported positive free cash flow of Ps. 23.9 million as working
capital investments were minimized by closely aligning construction spends with collections.

Page 6

Second Quarter 2012 Earnings Release

DEVELOPMENT PIPELINE

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

1Q10
5,582
1,340
1,349
1,415
5,294
127,141

2Q10
4,922
3,030
3,062
1,401
7,319
127,238

3Q10
5,333
4,254
4,184
1,374
7,765
122,975

4Q10
2,106
7,725
7,468
1,444
4,725
131,118

1Q11
3,582
2,912
3,007
1,349
8,851
130,234

2Q11
3,178
2,711
3,886
1,321
7,459
104,292

3Q11
8,113
4,204
4,010
1,515
8,650
108,148

4Q11
6,473
6,478
5,436
2,557
7,979
132,996

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

Home Starts increased 4.5% to 3,320 in 2Q12 when compared to 3,178 in 2Q11, reflecting the
ramp-up in construction activity at the Companys developments.
Home Completions grew 36.2% in the second quarter 2012 to 3,692, from 2,711 in the same
period 2011, in line with the Companys construction spends during the quarter.
Finished Home Inventory decreased 33.2% to 1,592 units, from 2,383 units reported at the end of
1Q12, as a result of housing sales growth.

Development Start Year

8,000
7,000
6,000
5,000
Homes Titled 4,000

2012
2011
2010
2009
2008

3,000
2,000

2007
2006
2005

1,000

Page 7

Second Quarter 2012 Earnings Release

LAND RESERVES
As of June 30, 2012, the Companys total land bank reached approximately 127,487 units, of which
approximately 74,371 were owned land reserves, while 53,116 were held through land trust
agreements.

DEBT AND DERIVATIVES EXPOSURE

Short Term Debt (Ps.mm)
Notes Payable to Financial Institutions
Current Portion of Long Term Debt

57,307

Derivatives

TOTAL

57,307

Long Term Debt (Ps.mm)

High Yield Bond
Capital Leases
Less Current Portion
TOTAL

3,156,102
106,753
57,307
3,205,548

TOTAL DEBT
CASH AND CASH EQUIVALENTS
MTM DERIVATIVE POSITION
NET DEBT

3,262,855
363,226
262,710
2,636,919

TOTAL DEBT** / LTM EBITDA

NET DEBT / LTM EBITDA
LTM EBITDA / LTM INTEREST EXPENSE

Notional
(US$)
Coupon Swaps (TIIE)
Coupon Swaps (Fix)
Principal Hedges (Forwards)
Embedded derivatives asset
TOTAL

156
120
40

FMV
(Ps$)
Ps.
Ps.
Ps.
Ps.
Ps.

FMV (US$)

200,896
7,618
23,802
30,394
262,710

14,714
558
1,714
16,986

3.06
2.69
2.88

** Total debt= Total Debt - MTM Derivative Position

As of June 30, 2012, Javer continued to possess available credit facility lines in excess of Ps.
1,401.5 million.
As of June 30, 2012, Javer maintained derivative positions to hedge 100% of the Companys
currency exposure related to the first five years of 2021 High Yield Bond coupons and 100% of the
coupons related to the remaining principal amount of the 2014 Notes.
As of June 30, 2012, the Company possessed US$ 36.5 million in available credit lines from
derivative counterparties to finance any potential negative carrying values of the Companys
derivative contracts.
As of June 30, 2012, Total Debt / LTM EBITDA reached 3.06; EBITDA interest coverage reached
2.88x.

Page 8

Second Quarter 2012 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 and is the regions leading housing developer in terms of units sold,
the fourth-largest supplier of Infonavit homes in the country, and has a 16% market share in the state of
Nuevo Leon. The Company operates in the states of Nuevo Leon, Aguascalientes, Tamaulipas, Jalisco and
recently Queretaro.
During 2011, the Company reported revenues of Ps. 4,718.9 million (US$ 337.5 million) and sold a total of
16,339 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 9

Second Quarter 2012 Earnings Release

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

Consolidated Balance Sheets
As of June 30, 2012 and December 31, 2011
(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 4)
Other non-current assets
Total
Liabilities and stockholders equity
Current liabilities:
Notes payable to financial institutions (Note 2)
Current portion of long-term debt (Note 3)
Trade accounts payable
Due to related parties
Advances from customers
Income taxes payable
Other liabilities
Total current liabilities
Long-term debt (Note 3)
Real estate liabilities
Employee retirement obligations
Derivative financial instruments
Deferred income taxes
Total liabilities
Commitments and contingencies
Stockholders equity:
Capital stock
Retained earnings (accumulated deficit)
Valuation of derivative financial instruments (Note 5)
Total stockholders equity
Total

June 30,
2012

December 31,
2011

Ps. 363,226
1,752,484
2,471,629
181,543
280,358
5,049,240
63,382
1,212,832
266,850
262,710
93,716
Ps.6,948,730

Ps. 415,721
2,019,973
2,636,334
166,521
204,341
5,442,890
70,425
875,367
288,259
307,099
144,546
Ps. 7,128,586

205,810
1,181,112
3,205,548
311,384
23,128

Ps. 59,000
49,377
1,170,514
1,268
5,749
8,081
204,452
1,498,441
3,245,577
199,361
25,437

789,805
5,510,977

779,453
5,748,269

734,806
547,078
155,869
1,437,753
Ps.6,948,730

734,806
418,762
226,749
1,380,317
Ps. 7,128,586

Ps.57,307
909,187
1,240
7,568

The accompanying notes are part of the consolidated financial statements.

Page 10

Second Quarter 2012 Earnings Release

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

Consolidated Statements of Comprehensive Income
For the three and six month period ended June 30, 2012 and 2011
(In thousands of Mexican pesos (Ps.))

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

2Q12

2Q11

6M 2012

6M 2011

Ps.1,224,277
883,907

Ps.1,093,053
755,635

Ps.2,629,587
1,936,654

Ps. 1,953,857
1,348,792

340,370
163,818
(71)
285,762
(109,139)
(34,535)
(74,604)

337,418
167,260
7,629
70,009
92,520
31,956
60,564

692,933
327,086
605
150,017
215,225
86,908
128,317

605,065
321,706
11,863
85,630
185,866
69,664
116,202

9,745
70,309

(70,880)
Ps. 57,437

(15,211)
Ps.100,991

51,647
Ps.(22,957)

Ps.

The accompanying notes are part of the consolidated financial statements.

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Second Quarter 2012 Earnings Release

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

Consolidated Statements of Changes in Stockholders Equity
For the six month ended June 30, 2012
(In thousands of Mexican pesos (Ps.))

Balance as of December 31, 2011

Comprehensive income
Balance as of June 30, 2012

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

Retained
Earnings
(Accumulated
Deficit)
Ps. 418,762
128,316
Ps.547,078

Valuation of
Derivative
Financial
Instruments
Ps. 226,749
(70,880)
Ps.155,869

Total
Stockholders
Equity
Ps. 1,380,317
57,436
Ps.1,437,753

The accompanying notes are part of the consolidated financial statements.

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Second Quarter 2012 Earnings Release

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

Consolidated Statements of Cash Flows
For the six month period ended June 30, 2012 and 2011.
(In thousands of Mexican pesos (Ps.))
June 30,
2012
Operating activities:
(Loss) income before income taxes
Items related to investing activities:
Depreciation and amortization
Unrealized exchange loss (gain)
Items related to financing activities:
Effects of valuation of derivative financial instruments
Interest expense
(Increase) decrease in:
Trade receivables net
Other accounts receivable net
Inventories
Prepaid expenses
Other assets
Increase (decrease) in:
Trade accounts payable
Due to related parties
Advances from customers
Other liabilities
Net cash used in operating activities
Investing activities:
Sale of machinery and equipment
Net cash used in investing activities
Financing activities:
Proceeds from notes payable from financial institutions
Payments of notes payable to financial institutions
Proceeds from long-term debt
Payments of long-term debt
Debt issuance costs
Interest paid
Payments commission
Net cash (used in) provided by financing activities
Cash:
Net decrease in cash
Cash at beginning of year
Cash at end of year

June 30,
2011

Ps.215,225

Ps. 185,866

28,242
(65,856)

31,145
(128,821)

(21,613)
238,901
394,899

(35,605)
236,591
289,176

274,532
(160,654)
(172,614)
(15,022)
50,830

(23,755)
(130,985)
(288,430)
124,183
(24,165)

(149,304)
(28)
1,819
186
224,644

(102,528)
(951)
291
(22,555)
(179,719)

8,163
8,163

(10,011)
(10,011)
50,000

(59,000)
7,495
(24,966)

(285,302)

348,754
(15,264)
(64,526)
(232,763)
(3,637)
82,564

(52,495)
415,721

(107,166)
491,939

(208,831)

Ps.363,226

Ps. 384,773

The accompanying notes are part of the consolidated financial statements.

Page 13

Second Quarter 2012 Earnings Release

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

Notes to Consolidated Financial Statements
As of June 30, 2012 and December 31, 2011
(In thousands of Mexican pesos (Ps.))

Inventories

Land under development

Housing units under construction
Urbanization and related equipment

As of June 30,
2012
Ps.830,526
401,602
1,239,501
Ps. 2,471,629

As of
December 31,
2011
Ps. 1,060,494
396,118
1,179,722
Ps.2,636,334

Notes payable to financial institutions

As of
December 31,
2011
Unsecured loan with an interest rate of TIIE plus a
spread of 4.0%
Unsecured loan with an interest rate of TIIE plus a
spread of 2.75%

$ 50,000
9,000
$59,000

The TIIE rate is established by the Bank of Mexico. On December 31, 2011, it was 4.79%.

Page 14

Second Quarter 2012 Earnings Release

Long-term debt

Senior Notes US$210 million refinanced 2021

Senior Notes US$30 million 2021
Remaining original Senior Notes US$210 million - 2014
Capital lease agreements to acquire molds, bearing annual
fixed interest rates of 12.33% and 12.53% for the year 2012
and 2011, respectively, with various maturities through 2015.
Capital lease agreements to acquire trucks bearing annual fixed
interest rate of 13.56%, with various maturities through 2015.
Capital lease agreements to acquire vehicles, bearing annual
fixed interest rate of 11.18 %, with various maturities
through 2015.
Capital lease agreements to acquire computers, bearing annual
fixed interest rate of 8.43%, whit various maturities through
2014.
Loan to pay suppliers bearing fixed interest rate of 11.80%,
with various maturities through 2015.

As of June 30,
2012
Ps.2,667,526
402,810
85,766

As of December
31, 2011
Ps. 2,685,916
412,276
87,681

68,187

76,717

5,282

7,185

13,138

9,721

12,869

15,458

7,277
3,262,855
(57,307)

Less Current portion

Ps.3,205,548

Long-term debt

3,294,954
(49,377)
Ps. 3,245,577

As of June 30, 2012, long-term debt maturities were as follows:

July 1, 2013 to March 31, 2014
July 1, 2014 to March 31, 2015
July 1, 2015 to March 31, 2016
2017 to April 6, 2021

Ps. 30,544
101,802
2,866
3,070,336
Ps. 3,205,548

5.

Derivative financial instruments

The Company designated the forwards and combined derivative financial instruments as cash
flow hedges. The fair value of the Companys derivative financial instruments as of June 30,
2012 was $262,710 as further detailed below (notional amounts in millions):

Instrument
Combined derivative financial instruments
Forward
Embedded derivatives asset

Type of
hedge
Cash flow
Cash flow

Notional
US$277
US$40

June 30,
2012
Ps.208,514
23,802
30,394
Ps.262,710

Total asset

* * * * *

Page 15