DESC

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DESC
HSBC 2006Mexico Conference
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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 DESCs 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 DESCs historical and future
business trends on a comparative basis if they
consider results of operations without these
divested businesses.
DESC
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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?
Who we are?
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SALES
Millions of Dollars
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EBITDA
Millions of Dollars
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NET DEBT
Millions of Dollars
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DEBT PROFILE
Millions of Dollars
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Chemical
Automotive
Core Business
Real Estate
Consumer
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Chemical
Only Mexican producer of synthetic rubber and
carbon black Mexicos 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 Business
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Products and Aplications
PRODUCTS AND APPLICATION
Synthetic Rubber
Polystyrene
Disposable cups and plates , packing
Plastics, tires, pavements
Carbon Black
Phosphates
Tires
Detergents
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Chemical
SALES
Millions of Dollars
Chemical
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Chemical
EBITDA
Chemical
Millions of Dollars
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Automotive
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
Automotive Business

• Light and heavy transmissions.
• Stamping.
• Pistons,pins and seals.
• Wheels.
• Aftermarket.

• Propeller shafts.
• Axles.
• Gears.
• Forging.
• JV with Dana

Main Customers General Motors, Ford,
Renault-Nissan, DANA, Eaton, International, DCX,
Hummer, among others.
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Automotive
Products and Aplications
PRODUCTS AND APPLICATION
Ring Gear
Pistons
Axles
Manual Transmissions
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Automotive
Products and Aplications
PRODUCTS AND APPLICATION
Axe Tube
Stamping, Painting Assembly
Gears
End Yokes and Diff. Cases
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Automotive
Products and Aplications
PRODUCTS AND APPLICATION
Diesel and Gas Pistons
Steel Wheels

Seals
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Automotive
SALES
Automotive
Millions of Dollars
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Automotive
EBITDA
Automotive
Millions of Dollars
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Consumer
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, Sams 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 Business
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Consumer
Products and Aplications
PRODUCTS
Particle Board (Rexcel)
U.S.A Products
Salsas
Chiles
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Consumer
SALES
Consumer
Millions of Dollars
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Consumer
EBITDA
Consumer
Millions of Dollars
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Real Estate

• Mexicos 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.
• Dines specialties are
• High income market segment
• Unique developments
• Large scale projects
• High specifications, design and quality

Real EstateBusiness
Real Estate
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Real Estate
Project Pipeline

• Mexico City
• Bosques de las Lomas, 1972 - 1989
  Residential
• La Estadia, 1975 - 1977 Residential
• Santa Fe Shopping Mall, 1990 - 2001 Retail
• Corporativo Arcos Bosques, 1991 - 2004 Office
• Hacienda de las Palmas, 1993 - 1995
  Residential
• Santa Fe Land Reserve, 2001 - 2004 Commercial
• La Punta Bosques, 1993 - 1996 Residential
• Bosques de Santa Fe, 1998 - 2005 Residential
  
• Bosques de Santa Fe Condos, 2006 -
  Residential
• Lagos de la Estadía, 2006 - Residential
• Pacific Coast Resorts
• Punta Ixtapa Phase 1, 1992 - 1996 Residential
• Punta Mita, 1994 - Residential
• Four Seasons Hotel, 1998 - 1999
• J.Nicklaus Golf Course, 1998 - 1999
• Punta Gorda, 2006 - Residential
• Punta Ixtapa Phase 2, 2006 - Residential

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Real Estate
Punta Mita
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Real Estate
Punta Mita

• Project Overview
• 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.
• 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.
• The master plan includes
• 3 luxury hotels
• 3 Championship Golf Courses
• 5 Beach Clubs, an equestrian facility, pier and
  wellness center
• 1,100 residential units in different gated
  communities.

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Real Estate
Punta Mita

• Market
• Punta Mitas 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.
• There is a particularly large demand for resort
  developments with luxury hotels and world-class
  golf courses in a gated community.
• Punta Mita satisfies the requirements
• of our clients by offering
• Ready to use residential units,
• Residential homesites for single
• family,
• Multifamily residential lots for
• developers.

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Real Estate
Punta Mita

• Current Status
• Resorts and Hotels
• 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.
• A 2nd Four Seasons hotel with 70 suites and
  aditinional villas are in planning stages.
• 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.

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Real Estate
Punta Mita

• Current Status
• Residential Homesites
• The first five developments with 86 residential
  homesites are soldout. The next development
  consists of 31 statelots averaging over 3 M
  dollars per unit.
• Ready to use residential units
• 20 Four Seasons villas are sold out. Phase 3
  consisting of 12 villas are under development.

• Third party projects under development
• Hacienda de Mita 100 oceanfront condos, avg.
  price 1.0 M usd - Mexican developer.
• El Encanto 68 villas and townhouses, avg. price
  2.0 M usd - Mexican developer.
• Las Palmas 100 villas and condos, avg. price 1.5
  M usd - American developer.
• Porta Fortuna 70 residences and condos, avg.
  price 2.5 M usd - American developer.

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Real Estate
Current Status in Other Projects

• Bosques de Santa Fe
• More than 98 of the single-family lots and 55
  of the apartment units are already sold.
• Dine plans to develop 150, 1.0 M dollar luxurious
  apartments
• Punta Gorda
• The project is located 6 miles west of San José
  del Cabo and just a 10 minute drive from the
  international airport.
• 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.
• Dine owns a 50 interest and has a joint venture
  with a local developer with broad experience in
  the area.

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Real Estate
Future Overview

• Whats Next
• The company is currently in a deep analysis
  process in order to consider participating in the
  following real estate segments
• Middle income housing.
• Commercial malls.
• Industrial parks.

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Real Estate
SALES
Real Estate
Millions of Dollars
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Real Estate
LAND BANK (Book Value)
Real Estate
Millions of Dollars