company hightlight alfa, s.a. de c.v. - latibex highlight 8-1-2006.pdf · company hightlight alfa,...

COMPANY HIGHTLIGHT ALFA, S.A. DE C.V.

Ticker BMV: ALFA ABloomberg: ALFAA MMReuters: ALFAA.MXwww.alfa.com.mx

Main Financial Figures4Q01 4Q02 4Q03 4Q04 12M

Date: 4-Ene-06 Sales 52,319 42,574 50,063 59,820 68,383 Last price: $61.79 Op. Profit 4,352 5,012 5,001 5,358 6,407 Outstanding Shares (mn): 581 Net Profit. 419 1,555 1,047 4,425 8,948 Free Float: 55% EBITDA 7,468 6,852 7,115 7,570 8,799 Mkt. Cap.(P$mn) Debt 34,757 19,896 20,331 19,742 15,995 Mkt. Cap.: (USD mill.): 3,390 Cash 6,931 4,568 5,101 7,206 17,406

Operating margin 8.3% 11.8% 10.0% 9.0% 9.4%Board of Directors: Net margin 0.8% 3.7% 2.1% 7.4% 13.1%

EBITDA margin 14.3% 16.1% 14.2% 12.7% 12.9%Tax rates 48.3% 23.6% 35.1% 25.0% 21.3%

IPC1 Day: 0.91 Week: 5.51 Month: 8.9

12 M 3Q04 4Q04 1Q05 2Q05 3Q05 6 Months: 38.3Curr.Assets/Curr.Liab. 1.58 1.83 1.93 1.90 3.10 12 Months: 46.1Tot.Liab/Cons.Equity 1.44 1.25 1.24 1.15 0.90 YTD: 4.9ROE 10.4 17.6 23.4 25.7 33.2 ROA 2.9 5.0 6.3 7.1 11.5 ROIC 7.3 7.9 9.7 10.4 10.1 Actual Prom.3 Años %Interest Coverage 7.3 7.5 7.5 7.7 8.4 P/E 4.0 13.3 -69.8 Net debt/Equity 60.0 50.2 52.2 47.7 -4.6 P/BV 1.2 1.0 15.5

EV/EBITDA 4.4 6.1 -28.3

Ex date Pay date Coupon6/12/2005 8/12/2005 Exchange 1 x 1

21/10/2005 25/10/2005 19 Reimbursement:US$ 0.258/4/2005 12/4/2005 18 Dividend: P$0.892664 .30/3/2004 1/4/2004 17 Dividend: P$0.8407725 25/2/2004 27/2/2004 Reimbursement: 0.339910731 CPOs of HYLSAMX x 1 acc. A of ALFA.25/2/2004 27/2/2004 Exchange 1 x 118/3/2003 20/3/2003 16 Dividend: P$0.648882

23/10/2002 25/10/2002 15 Dividend: P$0400316 23/10/2002 25/10/2002 Exchange 1 x 1

Source: BMV and BBVA Bancomer. Please see other imporant disclosures at the end of the doument.

1.83.41.20.9

35,872

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 ALFA AYields

Last Corporate Rights

Financial Ratios

Valuation (12 M)

9.54.6

3

4

5

6

7

8

9

10

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Ing. Dionisio Garza MedinaIng. Armando Garza SadaSr. Jose Calderon RojasLic. Valentin Diez MorodoLic. Adrian Sada GonzalezIng. Antonio Madero BrachoIng. Alvaro Fernandez GarzaIng. Ricardo Guajardo ToucheIng. Rogelio M. Rebolledo RojasIng. Bernardo Garza De La FuenteIng. Claudio X. Gonzalez LaporteIng. Lorenzo H. Zambrano TreviñoSr. Don Fernando Senderos MestreC.P. Enrique Osorno HeinzeLic. Leopoldo Marroquin Morales

ALFA is a Mexican company made of four business groups: Alpek (petrochemicals and synthetic fibers), Sigma (refrigerated and frozen foods),Versax (aluminum auto parts and other businesses) and Onexa (telecommunications). ALFA is a global leader in the manufacture of aluminumengine heads and the second largest producer of PTA. In Mexico, it is a leading manufacturer of refrigerated foods..

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-20

-10

0

10

20

30

40

50

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC ALFA

COMPANY HIGHTLIGHT AMERICA MOVIL, S.A. DE C.V.

Ticker BMV: AMX LBloomberg: AMXL MMReuters: AMXL.MXwww.americamovil.com


Date: 4-Ene-06 Sales 48,642 63,930 91,955 137,062 168,146 Last price: $17.07 Op. Profit 7,142 13,890 19,217 23,897 29,404 Outstanding Shares (mn): 36,385 Net Profit. 974- 5,119 16,083 16,797 18,593 Free Float: 65% EBITDA 12,407 23,100 34,056 42,812 49,585 Mkt. Cap.(P$mn) Debt 25,505 51,730 52,764 62,516 58,427 Mkt. Cap.: (USD mill.): 58,700 Cash 14,613 11,796 10,788 19,437 11,073

Operating margin 14.7% 21.7% 20.9% 17.4% 17.5%Board of Directors: Net margin -2.0% 8.0% 17.5% 12.3% 11.1%



12 M 3Q04 4Q04 1Q05 2Q05 3Q05 6 Months: 38.3Curr.Assets/Curr.Liab. 1.08 1.16 1.13 0.96 0.78 12 Months: 46.1Tot.Liab/Cons.Equity 1.21 1.51 1.37 1.55 1.50 YTD: 4.9ROE 28.6 23.0 22.4 28.1 22.8 ROA 12.6 9.4 9.5 11.3 9.3 ROIC 14.3 14.0 14.8 14.4 14.6 Actual Prom.3 Años %Interest Coverage 23.1 12.1 11.1 9.1 8.3 P/E 33.4 31.2 7.0Net debt/Equity 52.3 55.8 54.7 45.4 55.1 P/BV 7.2 3.9 84.0

EV/EBITDA 13.6 9.1 49.6

Ex date Pay date Coupon20/3/2006 23/3/2006 20 Dividend: $0.0175 4 of 4 ($0.0525 before split).

21/12/2005 23/12/2005 Extraordinary Dividend: P$0.3021/12/2005 23/12/2005 19 Dividend: $0.0175 3 of 4 ($0.0525 before split).21/9/2005 23/9/2005 18 Dividend: $0.0175 2 of 4 ($0.0525 before split).15/7/2005 19/7/2005 Split: 3 new for 1 old.22/6/2005 24/6/2005 17 Dividend: P$0.0525 . 1 of 4.18/3/2005 23/3/2005 16 Dividend: P$0.03 . 4 of 4.

21/12/2004 23/12/2004 15 Dividend: P$0.03 . 3 of 4.14/12/2004 16/12/2004 Exchange 1 x 1.


3.49.99.660.0

621,086

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 AMX LYields


Financial Ratios

Valuation (12 M)

76.89.8

5

6

7

8

9

10

11

12

13

14

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Ing. Carlos Slim HeluLic. Daniel Hajj AboumradC.P. Francisco Alvarez del CampoC.P. Agustín Aguilar LaurentsLic. Rafael Robles Miaja

AMX is a leading supplier of cellular telephone services in Mexico. Through its subsidiary Radio Movil Dipsa, S.A. de C.V. which operates underthe registered trademark Telcel, it supplies coverage in nine regions of Mexico, with a network that covers approximately 31.4% of the Mexicanterritory.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-20-10

0102030405060708090

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC AMX

COMPANY HIGHTLIGHT GRUPO ELEKTRA, S.A. DE C.V.

Ticker BMV: ELEKTRA *Bloomberg: ELEKTRA* MMReuters: ELEKTRA.MXwww.elektra.com.mx


Date: 4-Ene-06 Sales 16,753 17,565 22,221 26,767 30,816 Last price: $95.67 Op. Profit 2,299 2,293 2,620 2,940 3,421 Outstanding Shares (mn): 240 Net Profit. 1,286 84 1,222 1,950 2,213 Free Float: 27% EBITDA 2,985 3,110 3,692 4,182 4,809 Mkt. Cap.(P$mn) Debt 5,437 6,747 12,972 23,303 30,168 Mkt. Cap.: (USD mill.): 2,174 Cash 2,164 3,732 7,678 13,613 20,308




12 M 3Q04 4Q04 1Q05 2Q05 3Q05 6 Months: 38.3Curr.Assets/Curr.Liab. 1.26 1.27 1.24 1.22 1.25 12 Months: 46.1Tot.Liab/Cons.Equity 3.38 3.86 4.01 4.44 4.22 YTD: 4.9ROE 26.8 27.0 27.0 26.0 26.9 ROA 6.8 6.1 5.7 5.4 5.6 ROIC 10.6 9.9 8.7 8.5 8.2 Actual Prom.3 Años %Interest Coverage 7.7 7.5 7.7 11.2 17.4 P/E 10.4 12.2 -14.5 Net debt/Equity 122.1 122.1 109.3 129.0 111.8 P/BV 2.6 2.2 16.1

EV/EBITDA 6.8 5.6 22.3

Ex date Pay date Coupon27/7/2005 29/7/2005 Exchange: 1 x 16/4/2005 8/4/2005 Dividend: P$1.112/4/2004 6/4/2004 Dividendo: $1.03347 2/4/2003 4/4/2003 Dividendo: $0.77284425/4/2002 29/4/2002 Dividendo: $0.12483 por CPO.18/4/2001 20/4/2001 Dividendo: $0.125415 por CPO


1.50.92.919.7

23,003

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 ELEKTRA *Yields


Financial Ratios

Valuation (12 M)

-0.1 1.8

1

2

3

4

5

6

7

8

9

10

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Sr. Ricardo Benjamin Salinas PliegoSr. Pedro Padilla LongoriaLic. Hugo Salinas PriceSr. Luis J. EcharteSr. Jorge R. Bellot CastroSr. Gonzalo Brockmann GarciaLic. Guillermo Salinas PliegoSr. Manuel Rodriguez De CastroIng. Roberto Servitje AchuteguiSr. Carlos Garza Y RodriguezC.P. Teofilo Juan Augusto Morales GonzalezLic. Rafael Guillermo Martinez De Ita

ELEKTRA is a holding and real-estate company engaged in the acquisition, management and leasing of property to Salinas y Rocha, S.A., for itscommercial operation.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-30

-20

-10

0

10

20

30

40

50

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC ELEKTRA

COMPANY HIGHTLIGHT CORPORACION GEO, S.A. DE C.V.

Ticker BMV: GEO BBloomberg: GEOB MMReuters: GEOB.MXwww.casasgeo.com


Date: 4-Ene-06 Sales 5,539 6,058 6,787 7,991 9,213 Last price: $37.69 Op. Profit 779 937 1,120 1,363 1,594 Outstanding Shares (mn): 533 Net Profit. 330 406 552 817 1,010 Free Float: 73% EBITDA 890 1,048 1,268 1,535 1,799 Mkt. Cap.(P$mn) Debt 2,740 2,410 2,167 2,627 2,875 Mkt. Cap.: (USD mill.): 1,898 Cash 803 952 785 1,694 1,409





EV/EBITDA 12.0 7.6 58.0

Ex date Pay date Coupon7/5/2004 11/5/2004 Split: 5 new x 1 old.


0.53.03.738.3

20,077

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 GEO BYields


Financial Ratios

Valuation (12 M)

69.90.3

23456789

10111213

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Arq Luis Orvañanos LascurainCp Victor Segura GomezLic Jose Carral EscalanteArq Roberto Cruz Y SerranoDr David Casares ArrangoizCp Jose Manuel Agudo RoldanAlfredo Abdeljalek CarrascoCp Emilio Cuenca FriederchsenIng. Miguel Gomez Mont UruetaArq. Francisco Arellano BenitezLic Julio Alonso Millan BojalilArq Carlos Garcia Velez Y CortazarLic Gilberto Perez Alonso CifuentesCp. Joaquin Gomez AlvarezCp Javier Labrador GoyenecheLic. Tomas Lozano MolinaLic Maria Eugenia Fernandez Bustelo

GEO is the leading housing builder in Mexico and Latin America in terms of the number of homes sold. Through its subsidiaries it is positioned inthe country's fastest-growing cities and is involved in all aspects of design, development, construction, marketing, sales and delivery of entry-leveland middle-income housing in Mexico and Chile. Geo is the most widely diversified company in Mexico, operating in 32 cities in 19 states andcovering markets that are home to more than 70% of the country's population.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-20-10

01020304050607080

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC GEO

COMPANY HIGHTLIGHT GRUPO MODELO, S.A. DE C.V.

Ticker BMV: GMODELO CBloomberg: GMODELOC MMReuters: GMODELOC.MXwww.gmodelo.com.mx


Date: 4-Ene-06 Sales 37,829 41,184 43,286 45,584 48,015 Last price: $38.75 Op. Profit 9,235 10,486 11,627 13,376 13,730 Outstanding Shares (mn): 3,252 Net Profit. 4,260 4,701 5,154 6,289 7,559 Free Float: 15% EBITDA 11,166 12,495 13,713 15,527 16,071 Mkt. Cap.(P$mn) Debt - - - - - Mkt. Cap.: (USD mill.): 11,909 Cash 9,763 11,372 12,968 16,122 16,766




12 M 3Q04 4Q04 1Q05 2Q05 3Q05 6 Months: 38.3Curr.Assets/Curr.Liab. 5.53 5.91 5.53 5.53 6.13 12 Months: 46.1Tot.Liab/Cons.Equity 0.22 0.21 0.21 0.20 0.19 YTD: 4.9ROE 13.3 14.0 14.4 15.7 15.8 ROA 8.3 8.8 9.1 10.0 10.1 ROIC 15.5 17.1 17.4 18.2 18.0 Actual Prom.3 Años %Interest Coverage I.G. I.G. I.G. I.G. I.G. P/E 16.7 17.9 -7.0 Net debt/Equity -33.7 -33.9 -36.0 -32.7 -33.5 P/BV 2.5 2.3 11.3

EV/EBITDA 9.2 8.2 11.2

Ex date Pay date Coupon21/4/05 25/4/05 13 Dividend: P$1.05 22/4/04 26/4/04 12 Dividend: P$0.8523 24/4/03 28/4/03 11 Dividend: P$0.541225/4/02 29/4/02 10 Dividend: P$0.3316 26/4/01 30/4/01 9 Dividend: P$0.1226/4/00 28/4/00 8 Dividend: P$0.21333


-0.6 0.911.914.3

126,006

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 GMODELO CYields


Financial Ratios

Valuation (12 M)

25.00.6

7

8

9

10

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Don Antonino Fernandez RodriguezDon Mark BobakDon Pedro SoaresDon James R. JonesDon Thomas W. SantelDoña Anne RichardsDon Jaime Serra PucheDon Pablo Gonzalez DiezDon Alejandro StrauchDon August A. Busch IiiLic. Valentin Diez MorodoLic. Emilio Carrillo GamboaDon Thomas Heather RodriguezDon Rogelio Ramirez De La O.Don Carlos Fernandez GonzalezDon Roberto Hernandez RamirezDon Juan Sanchez Navarro Y Peon

GMODELO is a leader in the production, distribution and sale of beer in Mexico. Over the years, it has been acquiring and building breweries, andnow has eight beer plants in Mexico, with a combined production capacity of 39.5 million hectoliters of beer each year. It has ten brands, the mostimportant of which are Corona Extra, the top-selling Mexican beer brand in the world; Modelo Especial, Victoria, Pacífico, Negra Modelo, and otherregional beers. It exports five brands of beer, with a presence in more than 140 countries, and has exclusive import rights in Mexico for the U.S.brewery Anheuser-Busch, whose brands include Budweiser and Bud Light.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-20

-10

0

10

20

30

40

50

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC GMODELO

COMPANY HIGHTLIGHT SARE HOLDING, S.A DE C.V.

Ticker BMV: SARE BBloomberg: SARE MMReuters: SAREB.MXwww.sare.com.mx


Date: 4-Ene-06 Sales 1,003 1,887 2,364 2,747 3,127 Last price: $11.24 Op. Profit 84 293 372 473 562 Outstanding Shares (mn): 383 Net Profit. 42 145 169 238 281 Free Float: 25% EBITDA 94 304 386 490 575 Mkt. Cap.(P$mn) Debt - 369 499 869 843 Mkt. Cap.: (USD mill.): 407 Cash - 134 383 184 638





EV/EBITDA 9.1 7.3 24.8

Ex date Pay date Coupon


-0.1 1.47.838.4

4,304

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 SARE BYields


Financial Ratios

Valuation (12 M)

28.50.3

5

6

7

8

9

10

10/03 03/04 08/04 01/05 06/05 11/05

C.P. Dionisio Sanchez GonzalezC.P. Elias Reyes CastellanosArq. Elias Reyes SarabiaIng. Miguel Angel Salinas DuarteC.P. Raul Lahud GarciaLic. Manuel Zepeda PayerasSr. Mauricio Romero OrozcoIng. Hector Larios SantillanLic. Alejandro Rojas Mota VelascoLic. Jorge Arturo Sanchez CarbajalC.P. Dionisio Julian Sanchez CarbajalC.P. Horacio Espinoza De Los Mont CuevasC.P. Roberto Diego Puga ContrerasLic. Vicente Grau Alonso

SARE owns stock in various subsidiaries engaged in the development of entry-level, medium-income and upper-income housing, and the provisionof real estate services.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-30

-20

-10

0

10

20

30

40

50

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC SARE

COMPANY HIGHTLIGHT TELEFONOS DE MEXICO, S.A. DE C.V.

Ticker BMV: TELMEX LBloomberg: TELMEXL MMReuters: TELMEXL.MXwww.telmex.com.mx


Date: 4-Ene-06 Sales 130,491 125,446 125,024 141,187 162,172 Last price: $13.68 Op. Profit 50,085 44,042 42,500 44,406 48,167 Outstanding Shares (mn): 22,541 Net Profit. 27,628 21,771 24,021 27,969 30,424 Free Float: 60% EBITDA 70,381 65,812 64,641 67,748 73,132 Mkt. Cap.(P$mn) Debt 82,012 73,578 73,484 91,588 92,127 Mkt. Cap.: (USD mill.): 29,143 Cash 11,189 14,193 10,902 20,851 27,408





EV/EBITDA 5.6 4.7 18.1

Ex date Pay date Coupon20/3/2006 23/3/2006 37 Dividend: P$0.095 . 4 of 4.

16/12/2005 20/12/2005 36 Dividend: P$0.095 . 3 of 4.20/9/2005 22/9/2005 35 Dividend: P$0.095 . 2 of 4.23/5/2005 25/5/2005 Split 2 x 1 15/3/2005 17/3/2005 33 Dividend: P$0.17 . 4 of 4.

14/12/2004 16/12/2004 32 Dividend: P$0.17 . 3 of 4.14/9/2004 17/9/2004 31 Dividend: P$0.17 . 2 of 4.16/6/2004 18/6/2004 30 Dividend: P$0.17 . 1 of 4.17/3/2004 19/3/2004 29 Dividend: P$0.155 . 4 of 4.


-1.2 5.712.533.5

308,355

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 TELMEX LYields


Financial Ratios

Valuation (12 M)

28.94.0

4

5

6

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Lic. Carlos Slim DomitLic Jaime Chico PardoC.P. Juan Antonio Perez SimonIng. Carlos Slim HeluSr. James W. CallawaySr. Robert L. HenrichsSr. Richard P. ResnickIng. Antonio Cosio AriñoIng. Elmer Franco MaciasLic. Angel Losada MorenoSr. Romulo O Farril JrSr. Emilio Azcarraga JeanC.P. Rafael Kalach MizrahiLic. Ricardo Martin BringasLic. Fernando Senderos MestreLic. Marco Antonio Slim DomitMtra. Amparo Espinosa Rugarcia

TELMEX owns and operates the largest telecommunications system in Mexico. It is currently the leading supplier of local, long-distance and cellphone services in Mexico. It also supplies other telecommunications and related services like telephone directories, data transmission, Internetaccess, paging and interconnection of long-distance carriers.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-20

-10

0

10

20

30

40

50

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC TELMEX

COMPANY HIGHTLIGHT TV AZTECA, S.A. DE C.V.

Ticker BMV: TVAZTCA CPOBloomberg: TVAZTCPO MMReuters: TVAZTCACPO.MXwww.tvazteca.com.mx


Date: 4-Ene-06 Sales 6,812 7,442 7,791 8,463 8,476 Last price: $7.18 Op. Profit 2,327 3,137 3,217 3,319 3,285 Outstanding Shares (mn): 2,986 Net Profit. 1,678 1,095 1,686 1,571 1,598 Free Float: 39% EBITDA 3,000 3,565 3,612 3,728 3,694 Mkt. Cap.(P$mn) Debt 6,886 6,851 8,042 6,323 7,034 Mkt. Cap.: (USD mill.): 2,027 Cash 1,837 1,550 2,655 765 850





EV/EBITDA 7.5 6.4 17.3

Ex date Pay date Coupon29/11/2005 1/12/2005 Dividend: $0.01132507666395370 x CPO. Reimbursement: $0.0673058931134574 x CPO7/6/2005 9/6/2005 Reimbursement: P$0.209676682 per CPO.

10/12/2004 14/12/2004 Reimbursement: P$0.495539644540977 per CPO.9/11/2004 11/11/2004 Reimbursement: P$0.0732556065548977 per CPO 2 of 2.9/11/2004 11/11/2004 Dividend: P$0.0155613288793702 per CPO. 11/5/2004 13/5/2004 Reimbursement: P$0.125295393107509 per CPO. 1 of 2.10/2/2004 12/2/2004 Exchange 1 x 1.3/12/2003 5/12/2003 Reimbursement: PP$0.617636 per CPO. 26/6/2003 30/6/2003 Reimbursement: P$0.416875114021871 x CPO.


0.02.66.537.3

21,442

Note: 12M Figures as of 3Q 2005. All figures in million pesos as of 3Q 2005 TVAZTCA CPOYields


Financial Ratios

Valuation (12 M)

11.72.6

4

5

6

7

8

9

01/03 06/03 11/03 04/04 09/04 02/05 07/05 12/05

Sr. Michael VinerSr Michael GearonSr. Francisco Murguia DiazSr. Pedro Padilla LongoriaC.P. Mario San Roman FloresLic. Guillermo Salinas PliegoSr. Joaquin Arrangoiz OrvañanosSr. Luis Jorge Echarte FernandezSr. Sergio Manuel Gutierrez MuguerzaLic. Francisco X. Borrego Hinojosa LinajeC.P. Juan Claudio Salles ManuelLic. Othon Frias Calderon

TVAZTCA produces programming for transmission over its own television networks, and for sale nationally and internationally; it also sellsadvertising time.

Price vs IPC (12 m)

EV/EBITDA (3 Years)

-30

-20

-10

0

10

20

30

40

50

01/05 03/05 05/05 07/05 09/05 11/05 01/06

IPC TVAZTCA

Directory Equity Research Systems and Information José Alberto Galván 52-55-5201-2908 [email protected]

Director Retail and Transportation

Elba Padilla 52-55-5201-2949 [email protected]

Subdirector of Systems and Market Information

Raphael Biderman 52-55-5201-2976 [email protected]

Senior Analyst Metal, Mining and Conglomerates

Josefina Godinez 52-55-5201-2832 [email protected]

Market Information Systems

Franciso Chávez 52-55-5201-2780 [email protected]

Senior Analyst Housing and Construction

Alejandro Fuentes 52-55-5201-2925 [email protected]

Senior Analyst Technical and Quantitative

José Angel Montaño 52-55-5201-2930 [email protected]

Senior Analyst Food, Beverages and Banks

Mari Carmen Negrete 52-55-5201-2659 [email protected]

Senior Analyst Media and Transporation

Rodrigo Ortega 52-55-5201-2781 [email protected]

Senior Analyst Telecom and Conglomerates

National Sales Héctor García 52-55-5201-2892 [email protected]

Retail National Sales Jesús García-Luna 52-55-5201-2932 [email protected]

Retail National Sales

Federico Alvarez Morphy 52-55-5201-2896 [email protected]

Retail National Sales Ana María Rivera 52-55-5201-2000 ext.3811 [email protected]


Julio García Robles 52-55-5201-2900 [email protected]


REQUIRED DISCLOSURES

Analyst Certification

I, ALEJANDRO FUENTES

hereby certify that the views expressed in this research report accurately reflect my personal views about the subject company(ies) and its (their) securities. I also certify that I have not been, am not, and will not be receiving direct and/or indirect compensation in exchange for any specific recommendation in this report.

Ratings System & Target Price Methodology

Ratings are set on a six-month, twelve-month or year-end basis against the relevant benchmark. BBVA Securities issues five equity recommendations:

Buy: Upside potential of more than 15% vs. the market

Outperform: Upside potential of more than 5% vs. the market

Neutral (Hold): Stock is expected to perform in line with the market (+/-5%)

Underperform: Expected downside of at least 5% vs. the market

Sell: Expected downside of at least 15% vs. the market

BBVA Bancomer calculation of price targets and/or ratings are based on a combination of one or more methodologies generally accepted among financial analysts, including, but not limited to, analysis of multiples and/or discounted cash flows (whether in whole or by parts), or any other method which may be applied.

Equity Research Ratings Distribution Data current as of 12/30/05

The percentage breakdown of ratings in the BBVA Bancomer coverage universe is as follows:

Buy (including “Buy” and “Outperform”): 52%

Neutral (“Hold”): 41%

Sell (including “Sell” and “Underperform”): 7%

The percentage breakdown of ratings in the BBVA Latin America Equities coverage universe for companies for which BBVA Bancomer and/or any of its affiliates has performed investment banking services is as follows:

Buy (including “Buy” and “Outperform”): 54%

Neutral (“Hold”): 31%

Sell (including “Sell” and “Underperform”): 15%

Rating, target price and price history information for the mexican companies that are the subject of this report are available at www.bancomer.com

Ownership Positions

Ownership Positions. BBVA Bancomer and/or its affiliates, holds, directly or indirectly, at least 1% of the equity capital of the following companies whose shares are open to negotiation in organized markets and which is(are) the subject of this report: Grupo Macma; Grupo Video Visa; Synkro; Telefónica, S.A.

Receipt of Compensation / Provision of Services current as of 01/02/06

Management or Co-Management of Public Offering. Within the past twelve months, BBVA Bancomer and/or its affiliates have participated as manager or co-manager in public offerings, and received compensation for these services, of the company(ies) which is(are) the subject of this report and/or related separately-disseminated standalone reports: Asur, Cedevis, Cemex, CICSA, CIE, Femsa, ICA, ICH, Pasa, Qualitas, Sare, Telefónica Moviles México, Urbi.

Investment Banking Compensation. Within the past twelve months, BBVA Bancomer and/or any of its affiliates have received compensation for investment banking services from the company(ies) which is(are) the subject of this report and/or related separately-disseminated standalone reports: Alfa, Cemex, Desc, Domecq, Gigante, Grupo Bimbo, Grupo Carso, Grupo Maseca, Grupo México, Grupo Sanborns, Grupo TMM, Hylsamex, Interceramic, Liverpool, Meta, Nadro, Pemex, Peñoles, Sicartsa, SPCC, Tamsa, Telmex, Urbi.

Non-Investment Banking Compensation. Within the past twelve months, BBVA Bancomer has received non-investment banking securities-related compensation from the company(ies) which is(are) the subject of analysis of this report and/or related separately-disseminated standalone reports: Alfa; Alsea; Arca; America Movil; Amtel; Asur; Autlán; Bachoco; Bafar; Cel; Ceramic; Cid Mega; CIE; Cintra; Cmoctez; CMR; Comerci; Cnci; Collado; Consorcio Ara; Contal; Corporación Geo; Cydsasa; DESC; Elektra; Femsa; Fragua; Geupec; Gigante; Gissa; GMD; Gruma; Grupo Bimbo; Grupo Cementos de Chihuahua; Grupo Carso; GF Inbur; GF Norte; Grupo Mexico; Grupo Modelo; GSanborn; Hogar; Homex; Hylsamex; ICA; ICH; IMSA; Kimber; KOF; Lamosa; Liverpool; Maseca; Medica; Movila; Peñoles; Sab; Sare; Savia; Simec; Soriana; Televisa; Telecom; Telmex; TV Azteca; Urbi; Valle; Vitro; Walmex.

Analyst Compensation. The remuneration system concerning the analyst/s, author/s of this report is based on multiple criteria, including the results obtained in the fiscal year by BBVA, S.A., BBVA Bancomer, BBVA Continental, BBVA Escritório de Representacão no Brasil (Brazil), BBVA Banco Frances and BBVA Chile, which, in turn, include the results generated by the investment banking business; nevertheless, they do not receive any remuneration based on revenues from any specific transaction in investment banking.

OTHER DISCLAIMERS

This document and the information, opinions, estimates and recommendations expressed herein, have been prepared by BBVA Bancomer, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer and/or Casa de Bolsa BBVA Bancomer, S.A. de C.V., Grupo Financiero BBVA Bancomer, (“BBVA Bancomer”), to provide its customers with general information regarding the date of issue of the report and are subject to changes without prior notice. BBVA Bancomer is not liable for giving notice of such changes or for updating the contents hereof. This document and its contents do not constitute an offer, invitation or solicitation to purchase or subscribe to any securities or other instruments, or to undertake or divest investments. Neither shall this document nor its contents form the basis of any contract, commitment or decision of any kind.

The determination of a price target does not imply any warranty that it will be attained. For a discussion of the risks associated with the attainment of price targets, which depend on other intrinsic and extrinsic factors that affect both the performance and trends prevailing in the market on which the price target is based, please refer to our recently published documents which are available via e-mail contacting our analysts or in our internet site www.bancomer.com.

Investors who have access to this document should be aware that the securities, instruments or investments to which it refers may not be appropriate for them due to their specific investment goals, financial positions or risk profiles, as these have not been taken into account to prepare this report. Therefore, investors should make their own investment decisions considering the said circumstances and obtaining such specialized advice as may be necessary.

The contents of this document are based upon information available to the public that has been obtained from sources considered to be reliable. However, such information has not been independently verified by BBVA Bancomer and therefore no warranty, either express or implicit, is given regarding its accuracy, integrity or correctness. BBVA Bancomer accepts no liability of any type for any direct or indirect losses arising from the use of the document or its contents. Investors should note that the past performance of securities or instruments or the historical results of investments do not guarantee future performance. The market prices of securities or instruments or the results of investments could fluctuate against the interests of investors. Investors should be aware that they could even face a loss of their investment.

Transactions in futures, options and securities or high-yield securities can involve high risks and are not appropriate for every investor. Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in such circumstances, investors may be required to pay more money to support those losses. Thus, before undertaking any transaction with these instruments, investors should be aware of their operation, as well as the rights, liabilities and risks implied by the same and the underlying stocks. Investors should also be aware that secondary markets for the said instruments may be limited or even not exist.

BBVA Bancomer or any of its affiliates salespersons, traders, and other professionals may provide oral or written market commentary or trading strategies to its clients that reflect opinions that are contrary to the opinions expressed herein. Furthermore, BBVA Bancomer or any of its affiliates’ proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein.

No part of this document may be (i) copied, photocopied or duplicated by any other form or means (ii) redistributed, forwarded or (iii) quoted, without the prior written consent of BBVA Bancomer. No part of this report may be copied, conveyed, distributed or furnished to any person or entity in any country (or persons or entities in the same) in which its distribution is prohibited by law. Failure to comply with these restrictions may breach the laws of the relevant jurisdiction.

This document is provided in the United Kingdom solely to those persons to whom it may be addressed according to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 and it is not to be directly or indirectly delivered to or distributed among any other type of persons or entities. In particular, this document is only aimed at and can be delivered to the following persons or entities (i) those outside the United Kingdom (ii) those with expertise regarding investments as mentioned under Section 19(5) of Order 2001, (iii) high net worth entities and any other person or entity under Section 49(1) of Order 2001 to whom the contents hereof can be legally revealed.

BBVA Bancomer and the rest of entities in the BBVA Group which are not members of the New York Stock Exchange or the National Association of Securities Dealers, Inc., are not subject to the rules of disclosure affecting such members.

The information contained in this document should be taken only a general guide on matters that may be of interest. The application and impact of the laws may vary substantially depending on specific circumstances. Changes in regulations and the risks inherent in electronic communication may cause delays, omissions, or inaccuracy in the information contained in this site. Accordingly, the information contained in the site is supplied on the understanding that the authors and editors do not hereby intend to supply any form of consulting, legal, accounting or other advice. As such, it should not be considered a substitute for the direct advice provided by accounting and fiscal advisors or other competent consultants.

All images and texts and texts are the property of BBVA Bancomer and may not be downloaded from the Internet, distributed, stored, re-used, re-transmitted, modified or used in any way, except as specified in this document, without the express written consent of BBVA Bancomer. BBVA Bancomer reserves all intellectual property rights to the fullest extent of the law. None of the information contained herein may be interpreted as a concession by implication, exclusion or any other means, of any patent or brand of BBVA Bancomer or of any third party. Nothing established herein should be interpreted as a concession of any license or right under any Bancomer copyright.

Any US recipient of this report (other than a US registered broker/dealer) that would like to effect any transactions in any security discussed in this report should contact and place orders with the company distributing the report, BBVA Securities, Inc., at (212) 728-2400. BBVA Securities Inc. accepts responsibilities (solely for purposes of and within the scope of SEC Rule 15a-6 under the U.S. Securities and Exchange Act of 1934) for this report and its dissemination in the United States.

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