Presentación Junio 2006


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Presentación Junio 2006

  1. 1. DESC HSBC 2006 Mexico Conference
  2. 2. DESC During this presentation management might discuss forward-looking statements which reflect the current opinions of DESC regarding future events. The words “anticipate,” “believe,” “expect,” “hope,” “have the intention of,” “might,” “plan,” “should” and similar expressions generally indicate comments on expectations. These comments are subject to risks, uncertainties and changing circumstances. The final results may be materially different from current expectations due to several factors, which include, but are not limited to, global and local changes in politics, the economy, business, competition, market and regulatory factors, cyclical trends in the automobile parts and chemical sectors; as well as other factors. DESC has no obligation whatsoever to update these comments on expectations. . . . . . . . . . . . Unless otherwise noted, the results in this report are being compared to adjusted 2003 and 2004 results, which are pro forma since they exclude DESC’s Constant Velocity Joint, Valve Lifter and Acrylic Laminate businesses to make them more comparable with the 2005 results. Management believes that investors can better evaluate and analyze DESC’s historical and future business trends on a comparative basis if they consider results of operations without these divested businesses.
  3. 3. ¿Who we are? DESC currently has 13,200 employees, distributed among the corporate area and four sectors. 2005 annual sales total more than US $2.2 billion which includes exports of over US $1 billion: ¿Who we are?
  4. 4. SALES Millions of Dollars CAGR 14%
  5. 5. EBITDA Millions of Dollars CAGR 26%
  6. 6. NET DEBT Millions of Dollars 41%
  7. 7. DEBT PROFILE Millions of Dollars
  8. 8. Core Business Consumer Automotive Chemical Real Estate
  9. 9. Chemical Business Only Mexican producer of synthetic rubber and carbon black ; Mexico’s leading producer of polystyrene and phosphates. Manufactures 6 product lines, at 8 plants located in 4 states of Mexico and one in Spain , using propietary technology and third parties. Sales: Exports products to 40 countries. Main Customers: Procter & Gamble, “La Corona” , Coca-Cola Company, Koch, Michelin, Central de Bolsas Jaguar (Pactiv), Cooper Tire & Rubber, Rubber Company “Tornel”, Bridgestone-Firestone, Total-Fina-Elf among others. Chemical
  10. 10. Products and Aplications Synthetic Rubber PRODUCTS AND APPLICATION Polystyrene Disposable cups and plates , packing Plastics, tires, pavements Phosphates Detergents Carbon Black Tires
  11. 11. Chemical SALES Chemical Millions of Dollars
  12. 12. Chemical EBITDA Millions of Dollars Chemical
  13. 13. Automotive Business Manufactures and sells several autoparts and components in 14 plants throughout Mexico and 1 in the U.S. In 2005 DESC announced a JV agreement between CIE Automotive and DESC Automotive to encourage a strategic relation in the manufacturing of automotive parts. Products <ul><li>Light and heavy transmissions . </li></ul><ul><li>Stamping. </li></ul><ul><li>Pistons,pins and seals. </li></ul><ul><li>Wheels. </li></ul><ul><li>Aftermarket. </li></ul>* Propeller shafts. * Axles. * Gears. * Forging. * JV with Dana Main Customers: General Motors, Ford, Renault-Nissan, DANA, Eaton, International, DCX, Hummer, among others. Automotive
  14. 14. Products and Aplications PRODUCTS AND APPLICATION Pistons Ring Gear Manual Transmissions Automotive Axles
  15. 15. Products and Aplications PRODUCTS AND APPLICATION Stamping, Painting & Assembly Automotive Axe Tube End Yokes and Diff. Cases Gears
  16. 16. Products and Aplications PRODUCTS AND APPLICATION Seals Automotive Diesel and Gas Pistons Steel Wheels
  17. 17. SALES Automotive Millions of Dollars Automotive
  18. 18. Automotive EBITDA Millions of Dollars Automotive
  19. 19. Consumer Business With 4 plants located in Mexico, this business produces and distributes a wide variety of non-perishable products such as tomato puree, canned vegetables, corn oil, tuna, coffee, chili, hot sauces, among others under the brands “ Del Fuerte”, “La Gloria”, “Embasa”, “Nair”, “Smuckers” and “Blason” . In the U.S. under the brand “La Victoria”, the Branded Food Business mainly sells hot salsas and chiles with an excellent market share in the west coast. Main Customers : Wal Mart, Sam’s Club, Casa Ley, Soriana, Comercial Mexicana, Gigante, Kroger, Costco, US Food Service, among other retail stores, both wholesale and retailer. The particle board Business which includes Wood Plantations is distributed among 3 facilities in Mexico as well as in 12,000 eucalyptus acre. Exports are mainly focus in the United States. The Pork Meat Business includes from the production of feed stock to the commercialization of pork meat. Consumer
  20. 20. Products and Aplications PRODUCTS U.S.A Products Salsas Chiles Consumer Particle Board (Rexcel)
  21. 21. SALES Consumer Millions of Dollars Consumer
  22. 22. EBITDA Consumer Consumer Millions of Dollars
  23. 23. Real Estate Business Real Estate <ul><li>Mexico’s most prestigious real estate development company was founded in 1978, oriented to the real estate projects for the highest income sector in Mexico, establishing world quality projects in residential, commercial, leisure and corporate real estate developments. </li></ul><ul><li>Dine’s specialties are: </li></ul><ul><ul><li>High income market segment </li></ul></ul><ul><ul><li>Unique developments </li></ul></ul><ul><ul><li>Large scale projects </li></ul></ul><ul><ul><li>High specifications, design and quality </li></ul></ul>Real Estate
  24. 24. <ul><li>Mexico City </li></ul><ul><li>Bosques de las Lomas, 1972 - 1989 Residential </li></ul><ul><li>La Estadia, 1975 - 1977 Residential </li></ul><ul><li>Santa Fe Shopping Mall, 1990 - 2001 Retail </li></ul><ul><li>Corporativo Arcos Bosques, 1991 - 2004 Office </li></ul><ul><li>Hacienda de las Palmas, 1993 - 1995 Residential </li></ul><ul><li>Santa Fe Land Reserve, 2001 - 2004 Commercial </li></ul><ul><li>La Punta Bosques, 1993 - 1996 Residential </li></ul><ul><li>Bosques de Santa Fe, 1998 - 2005 Residential </li></ul><ul><li>Bosques de Santa Fe Condos, 2006 - Residential </li></ul><ul><li>Lagos de la Estadía, 2006 - Residential </li></ul><ul><li>Pacific Coast Resorts </li></ul><ul><li>Punta Ixtapa Phase 1, 1992 - 1996 Residential </li></ul><ul><li>Punta Mita, 1994 - Residential </li></ul><ul><ul><li>Four Seasons Hotel, 1998 - 1999 </li></ul></ul><ul><ul><li>J.Nicklaus Golf Course, 1998 - 1999 </li></ul></ul><ul><li>Punta Gorda, 2006 - Residential </li></ul><ul><li>Punta Ixtapa Phase 2, 2006 - Residential </li></ul>Real Estate Project Pipeline
  25. 25. Punta Mita Real Estate
  26. 26. <ul><li>Project Overview </li></ul><ul><li>Punta Mita is a tropical sanctuary that encompasses more than 1,500 acres on a majestic peninsula surrounded on three sides by 9.5 miles of pristine shoreline. Occupying a premier location on the Pacific Coast of Mexico in the northern tip of Banderas Bay and a leisure drive from Puerto Vallarta. </li></ul><ul><li>The development is 100% owned by Desc with project partnership with Four Seasons, Starwood, Strategic Hotel Capital, Casa Mexicana/AIG, Inspired developments, B.W. and Others. </li></ul><ul><li>The master plan includes: </li></ul><ul><ul><li>3 luxury hotels </li></ul></ul><ul><ul><li>3 Championship Golf Courses </li></ul></ul><ul><ul><li>5 Beach Clubs, an equestrian facility, pier and wellness center </li></ul></ul><ul><ul><li>1,100 residential units in different gated communities. </li></ul></ul>Real Estate Punta Mita
  27. 27. <ul><li>Market </li></ul><ul><li>Punta Mita’s natural market is the Southern, Western and Mid-western United States, being just a few hours from San Francisco, Los Angeles, Dallas and other main US cities. </li></ul><ul><li>There is a particularly large demand for resort developments with luxury hotels and world-class golf courses in a gated community. </li></ul><ul><li>Punta Mita satisfies the requirements </li></ul><ul><li>of our clients by offering: </li></ul><ul><ul><li>Ready to use residential units, </li></ul></ul><ul><ul><li>Residential homesites for single </li></ul></ul><ul><ul><li>family, </li></ul></ul><ul><ul><li>Multifamily residential lots for </li></ul></ul><ul><ul><li>developers. </li></ul></ul>Real Estate Punta Mita
  28. 28. <ul><li>Current Status </li></ul><ul><li>Resorts and Hotels: </li></ul><ul><li>A Four Seasons Resort with 170 rooms and a Jack Nicklaus Signature Golf Course are in operation since December 1999. Dine is developing 60+ whole ownership Four Seasons villas averaging 3 M dollars and a fractional project is under construction with 38 units. </li></ul><ul><li>A 2 nd Four Seasons hotel with 70 suites and aditinional villas are in planning stages. </li></ul><ul><li>A St. Regis Resort, including a 120 room deluxe hotel schedule to open late 2007 is under construction,St Regis branded fractional units and villas will complement this resort. </li></ul>Real Estate Punta Mita
  29. 29. <ul><li>Current Status </li></ul><ul><li>Residential Homesites: </li></ul><ul><li>The first five developments with 86 residential homesites are soldout. The next development consists of 31 statelots averaging over 3 M dollars per unit. </li></ul><ul><li>Ready to use residential units: </li></ul><ul><li>20 Four Seasons villas are sold out. Phase 3 consisting of 12 villas are under development. </li></ul><ul><li>Third party projects under development: </li></ul><ul><li>Hacienda de Mita 100 oceanfront condos, avg. price 1.0 M usd - Mexican developer. </li></ul><ul><li>El Encanto 68 villas and townhouses, avg. price 2.0 M usd - Mexican developer. </li></ul><ul><li>Las Palmas 100 villas and condos, avg. price 1.5 M usd - American developer. </li></ul><ul><li>Porta Fortuna 70 residences and condos, avg. price 2.5 M usd - American developer. </li></ul>Real Estate Punta Mita
  30. 30. <ul><li>Bosques de Santa Fe </li></ul><ul><li>More than 98% of the single-family lots and 55% of the apartment units are already sold. </li></ul><ul><li>Dine plans to develop 150, 1.0 M dollar luxurious apartments: </li></ul><ul><li>Punta Gorda </li></ul><ul><li>The project is located 6 miles west of San José del Cabo and just a 10 minute drive from the international airport. </li></ul><ul><li>In its 1,850 acres of land with 4 miles of coast-line, the master plan contemplates a 27 hole golf course, single family lots and villas with great ocean views. </li></ul><ul><li>Dine owns a 50% interest and has a joint venture with a local developer with broad experience in the area. </li></ul>Real Estate Current Status in Other Projects
  31. 31. Real Estate Future Overview <ul><li>What’s Next </li></ul><ul><li>The company is currently in a deep analysis process in order to consider participating in the following real estate segments: </li></ul><ul><ul><li>Middle income housing. </li></ul></ul><ul><ul><li>Commercial malls. </li></ul></ul><ul><ul><li>Industrial parks. </li></ul></ul>
  32. 32. Real Estate SALES Millions of Dollars Real Estate
  33. 33. LAND BANK (Book Value) Real Estate Millions of Dollars Real Estate