JAVER REPORTS FINANCIAL RESULTS FOR

FIRST QUARTER 2012

Monterrey, Nuevo Leon, Mexico April 27, 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 first quarter period ended March 31, 2012.
EXECUTIVE SUMMARY
1Q12
Homes titled
Net Revenues (Ps.mm)
Gross Profit (Ps.mm)
Gross Margin
EBITDA (Ps.mm)
EBITDA Margin
Net Income
Net Margin
Comprehensive income

1Q11

4,438
Ps.
Ps.
Ps.
Ps.
Ps.

1,405,310
352,563
25.1%
204,675
14.6%
202,921
14.4%
80,394

Ps.
Ps.
Ps.
Ps.
Ps.

Variance

3,007

47.6%

860,804
267,647
31.1%
127,228
14.8%
55,639
6.5%
30,683

63.3%
31.7%
(6.0%)
60.9%
(0.2%)
264.7%
8.0%
162.0%

12M11

12M10

16,339
Ps.
Ps.
Ps.
Ps.
Ps.

4,718,574
1,471,627
31.2%
902,227
19.1%
4,169
0.09%
294,912

16,063
Ps.
Ps.
Ps.
Ps.
Ps.

4,673,919
1,369,241
29.3%
878,795
18.8%
117,666
2.5%
77,284

Variance
1.7%
1.0%
7.5%
1.9%
2.7%
0.3%
(96.5%)
(2.4%)
281.6%

Net Revenues in first quarter 2012 increased 63.3% to Ps. 1,405.3

million from Ps. 860.8 million in 1Q11. This was mainly due to the
increase in volume given the greater availability of subsidies during
1Q12. Homes titled grew 47.6% from 3,007 units in 1Q11 to 4,438 units
in 1Q12.

EBITDA increased 60.9% to Ps. 204.7 million in first quarter 2012 from
Ps. 127.2 million in 1Q11, mostly driven by the sharp increase in volume
compared to first quarter 2011, which enhanced the operative
performance for the period.

Net Income posted an increase of 264.7%, reaching Ps. 202.9 million in

1Q12 from 55.6 million reported in 1Q11, driven by a Ps. 263.3 million
gain in the interest income line due to the appreciation of the peso along
with 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

First Quarter 2012 Earnings Release

CEO STATEMENT
Mr. Roberto Russildi, Javers Chief Executive Officer, commented, We are extremely pleased with
Javers performance during the first quarter which was highlighted by significant volume, revenue,
and operating profit growth coupled with positive free cash flow and best in class returns on
invested capital. These results underscore the resilience of our strategy, which focuses on quickly
adapting to changing demand and mortgage availability patterns through pricing and prototype
adjustments while maintaining working capital discipline and a strong balance sheet.
It is worth noting that although a good part of our volume growth during the quarter can be
attributed to subsidy availability within our AEL focused businesses, another major portion came
from calibrating our pricing and prototype selection in the MI segment in a similar fashion as we
had done in 2011. Although this calibration resulted in overall lower gross margins across our
product mix, it did significantly improve our volume, operating leverage, and thus better Javers
operating profit margins. Additionally, it improved asset turnover, resulting in increased free cash
flow and return on invested capital.
Notably, Infonavit and Fovissste are off to great starts to the year from an origination perspective,
driven, in part, by the availability of subsidies which has been widespread throughout the country.
Nonetheless, around 80% of the Infonavit targeted subsidies for the year have already been
allocated and we have begun to see availability dry up in some states within our territory. Although
the non-Infonavit targeted subsidy budget is still grossly underutilized, it is not clear whether the
reallocation process will allow for more subsidies to flow through Infonavit to our territory during
the remainder of the year. In light of this possibility, Javer has been managing its inventory position
very conservatively, and remains vigilant to adjust accordingly should subsidy availability pick up
again. Nonetheless, given our volume achieved in the first quarter and our anticipated sales even
without subsidies for the remainder of the year, Javer remains comfortable with the yearly guidance
we provided for 2012.
Although challenges indeed remain, we are confident that given what Javer has accomplished thus
far and how our business has reacted and adapted in the recent past, the Company will continue to
deliver a superior performance and returns to all its stakeholders.

Page 2

First Quarter 2012 Earnings Release

UNITS SOLD AND NET REVENUES*

1Q12

% of
revenues

1Q11

% of
Variance
revenues

12M11

% of
revenues

% of
Variance
revenues

12M10

Equivalent Units Sold

2,772
1,581
85
4,438

Low Income
Middle Income
Residential
TOTAL

2,118
792
97
3,007

30.9%
99.6%
(12.4%)
47.6%

9,396
6,515
428
16,339

11,070
4,090
903
16,063

-15.1%
59.3%
(52.6%)
1.7%

Revenues (Ps.mm)
Low Income
Middle Income
Residential
Total Home Sales

Ps.

Commercial Lot Sales

TOTAL

Ps.

582,656 41.5%
464,810
468,627 33.3%
249,153
93,238
6.6%
106,471
1,144,520 81.4% Ps. 820,433
260,790 18.6%
40,371
1,405,310 100.0% Ps. 860,804

54.0% 25.4%
1,967,140 41.7%
2,369,305 50.7% -17.0%
28.9% 88.1%
2,026,791 43.0%
1,259,002 26.9% 61.0%
12.4% (12.4%)
494,684 10.5%
890,255 19.0% (44.4%)
95.3% 39.5% Ps. 4,488,616 95.1% Ps. 4,518,562 96.7% (0.7%)
4.7% 546.0%
229,958
4.9%
155,357
3.3%
48.0%
100.0% 63.3% Ps. 4,718,574 100.0% Ps. 4,673,919 100.0% 1.0%

* 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.

1Q12
Average Sales Price per Unit (in thousands)
Low Income
Ps.
Middle Income
Ps.
Residential
Ps.
TOTAL
Ps.

210.2
296.4
1,096.9
257.9

1Q11
Ps.
Ps.
Ps.
Ps.

219.5
314.6
1097.6
272.8

12M11
Ps.
Ps.
Ps.
Ps.

209.4
311.1
1,155.8
274.7

12M10
Ps.
Ps.
Ps.
Ps.

214.0
307.8
985.9
281.3

Units Sold: Units sold increased 47.6% to 4,438 units in first quarter 2012 from 3,007 units in
1Q11. For the quarter, the major increase in revenues was reported by the middle income segment
with 88.1% while the low income segment posted 25.4%; conversely, the residential segment
registered a decrease of 12.4%. Low income sales represented 62.5% of total units titled and 41.5%
of total revenues, compared to 70.4% and 54.0%, respectively, in first quarter 2011.
Prices: For 1Q12, the average overall sales price decreased compared to 1Q11, from Ps. 272.8
thousand to Ps. 257.9 thousand.
Commercial lot sales grew 546.0% to Ps. 260.8 million in 1Q12 from Ps. 40.4 million posted in
the same period 2011, as a result of a higher number of large lot sales.

Page 3

First Quarter 2012 Earnings Release

Mortgage Provider Mix: During first quarter 2012, Infonavit continued to be Javers primary
mortgage provider, representing 97.1% of total units titled compared to 93.6% in first quarter 2011.
Mortgage Provider

1Q12

% of total

1Q11

Infonavit
Fovissste
Cofinavit
Banks / Sofoles
Other
TOTAL

4,310
39
17
37
35
4,438

97.1%
0.9%
0.4%
0.8%
0.8%
100.0%

2,814
24
37
110
22
3,007

% of total 12M11 % of total 12M10 % of total

93.6%
0.8%
1.2%
3.7%
0.7%
100.0%

14,981
232
155
465
506
16,339

91.7%
1.4%
0.9%
2.8%
3.1%
100.0%

13,079
215
490
1,358
919
16,061

81.4%
1.3%
3.1%
8.5%
5.7%
100.0%

GROSS PROFIT / MARGIN

1Q12

1Q11

269,788 Ps.
82,775 Ps.
352,563 Ps.

231,568
36,079
267,647

Variance

12M11

12M10

Variance

Gross Margin (PS.mm)

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

23.6%
31.7%
25.1%

28.2%
89.4%
31.1%

16.5% Ps. 1,313,008 Ps. 1,253,456

129.4% Ps.
158,619 Ps.
115,785
31.7% Ps. 1,471,627 Ps. 1,369,241

(4.7 pp)
(57.6 pp)
(6.0 pp)

29.3%
69.0%
31.2%

4.8%
37.0%
7.5%

27.7%
74.5%
29.3%

1.5 pp
(5.6 pp)
1.9 pp

Gross Profit increased 31.7% to Ps. 352.6 million in the first quarter 2012 from Ps. 267.6 million
registered in 1Q11 given the volume growth experienced during the quarter.
Gross Margin decreased 6.0 percentage points in 1Q12 mainly due to a decrease in the average
overall sales price which offset a higher participation of commercial lot sales in the quarterly
revenue figure.

Page 4

First Quarter 2012 Earnings Release

EBITDA / MARGIN

1Q12

1Q11

Ps.mm
Ps.
as a % of Sales

163,268 Ps.
11.62%

154,446
17.94%

EBITDA
Ps.mm
Ps.
EBITDA Margin

204,675 Ps.
14.6%

127,228
14.8%

Variance

12M11

12M10

Variance

5.7% Ps.
(6.3 pp)

635,006 Ps.
13.46%

549,938
11.77%

15.5%
1.7 pp

60.9% Ps.
(0.2 pp)

902,227 Ps.
19.1%

878,795
18.8%

2.7%
0.3 pp

SG&A

Selling, General and Administrative Expenses increased 5.7% in first quarter 2012 as a result of
higher commissions and increased advertising expenses. Given the operating leverage achieved
with the volume increase, as a percentage of sales, SG&A decreased 6.3 percentage points.
EBITDA for 1Q12 reported an increase of 60.9%, reaching Ps. 204.7 million from Ps. 127.2
million registered in 1Q11. EBITDA margin remained relatively flat for the quarter, with a 0.2
percentage point decline compared with 1Q11.

1Q12

1Q11
101,423
1,809
83,993

21% Ps.
206% Ps.
202% Ps.

493,809 Ps.
-5,884 Ps.
251,249 Ps.

Variance

12M11

Interest expense
Interest income
FX gains / losses

Ps.
Ps. Ps. -

123,023 Ps.
5,529 Ps. 253,239 Ps. -

NCFR

Ps. -

135,745 Ps.

15,621

769% Ps.

739,175 Ps.

Net gain (loss) on

cash flow hedges

Ps. -

122,527 Ps. -

24,956

391% Ps.

290,743 Ps.

12M10
426,982
-24,076
24,249
427,155
-40,382

Variance
16%
-76%
936%
73%
620%

Net comprehensive financing result improved for first quarter 2012, registering a Ps. 135.7
million income compared to a Ps. 15.6 million expense reported in 1Q11. This result was mainly
due the appreciation of the peso during the period.
Net Income increased to Ps. 202.9 million in the first quarter 2012 from Ps. 55.6 million in 1Q11.
Comprehensive Income, which includes MTM gains and losses on derivatives to hedge foreign
exchange exposure on debt, increased Ps. 80.3 million in 1Q12.

Page 5

First Quarter 2012 Earnings Release

ASSETS / LIABILITIES
Cash and cash equivalents increased to Ps. 417.2 million from Ps. 148.7 million registered in
1Q11.

WORKING CAPITAL

Trade Accounts Receivable

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

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

March 2012
Ps.mm
Days
1,811,422
125
2,628,933
258
1,192,917
117
1,456,888
143
4,303
0.4
4,172,081
357

LTM Sales
LTM Cost of Goods Sold

Ps.
Ps.

5,263,080
3,706,537

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

December 2011
Ps.mm
Days
2,090,398 161
2,720,634 305
875,367
98
1,454,175 163
5,749
1
4,226,475 401
4,718,574
3,246,947

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

March 2011
Ps.mm
Days
1,760,263
126
2,287,165
233
829,172
84
939,623
96
7,345
1
3,929,632
347

Ps.
Ps.

5,066,882
3,573,174

Javer reported an improvement in its working capital cycle for the period ended March 31, 2012
when compared to 2011, primarily due to absorption of inventory that was built up towards the end
of 2011 targeted towards the 2012 subsidy program.

FREE CASH FLOW

1Q12
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.

204,675
103,415
178,785
(103,441)
(56,995)
(264,043)
6,043
68,439

1Q11
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

127,227
68,104
(282,122)
(78,282)
(59,983)
(159,171)
(2,710)
(386,937)

12M11
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

902,227
385,391
(556,827)
(453,187)
(174,895)
(459,845)
(26,954)
(384,090)

12M10
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.
Ps.

878,795
425,304
(951,327)
(376,324)
(86,130)
(482,888)
(55,132)
(647,702)

During 1Q12, the Company reported positive free cash flow of Ps. 68.4 million pesos achieved
through efficient inventory planning.

Page 6

First 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

Home Starts grew 39.3% to 4,989 in 1Q12 when compared to 3,582 in 1Q11 reflecting the rampup in construction activity at the Companys developments, especially in Jalisco and Nuevo Leon.
Home Completions increased 46.4% in the first quarter 2012 to 4,264 from 2,912 in the same
period 2011, in line with the Companys construction spend during the quarter.
Finished Home Inventory decreased 6.8% to 2,383 units from 2,557 units reported at the end of
December 2011, as a result of the growth in homes sold.

LAND RESERVES
As of March 31, 2012, the Companys total land bank reached approximately 128,071 units, of
which approximately 76,051 were owned land reserves, while 52,020 were held through land trust
agreements.

Page 7

First Quarter 2012 Earnings Release

DEBT AND DERIVATIVES EXPOSURE

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

54,131

Derivatives

TOTAL

54,131

Long Term Debt (Ps.mm)

High Yield Bond
Capital Leases
Less Current Portion
TOTAL

2,943,381
110,620
54,131
2,999,870

TOTAL DEBT
CASH AND CASH EQUIVALENTS
MTM DERIVATIVE POSITION
NET DEBT

3,054,001
417,210
263,236
2,373,555

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$)

FMV (US$)

Ps. 203,076
Ps. 19,161
Ps.
5,534
Ps. 35,465
Ps. 263,236

15,805
1,491
431
17,727

2.85
2.42
3.11

** Total debt= Total Debt - MTM Derivative Position

As of March 31, 2012, Javer continued to possess available credit facility lines in excess of Ps.
1,294.9 million.
As of March 31, 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 March 31, 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 March 31, 2012, Total Debt / LTM EBITDA reached 2.85; EBITDA interest coverage
reached 3.11x

Page 8

First 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

First Quarter 2012 Earnings Release

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

Consolidated Balance Sheets
As of March 31, 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
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

March 31,
2012

December 31,
2011

Ps. 417,210
1,811,422
2,628,933
166,472
187,053
5,211,090
66,904
1,192,917
274,615
263,236
93,716
Ps. 7,102,478

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

288,916
1,470,771
2,999,870
334,735
26,480
809,911
5,641,767

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
779,453
5,748,269

734,806
621,683
104,222
1,460,711
Ps. 7,102,478

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

Ps. 54,131
1,122,153
1,268
4,303

The accompanying notes are part of the consolidated financial statements.

Page 10

First Quarter 2012 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, 2012 and 2011
(In thousands of Mexican pesos (Ps.))

1Q12
Revenues
Costs

1Q11

Ps. 1,405,310
1,052,747

Ps. 860,804
593,157

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

352,563
(163,268)
(676)
135,745
324,364
121,443
202,921

267,647
(154,445)
(4,234)
(15,621)
93,347
37,708
55,639

(122,527)

(24,956)

Total comprehensive income (loss)

Ps.80,394

Ps.30,683

The accompanying notes are part of the consolidated financial statements

Page 11

First 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 three month ended March 31, 2012
(In thousands of Mexican pesos (Ps.))

Balance as of December 31, 2011

Comprehensive income
Balance as of March 31, 2012

Capital
Stock
Ps. 734,806

Retained
Earnings
(Accumulated
Deficit)
Ps. 418,762
202,921

Ps. 734,806

Ps. 621,683

Valuation of
Derivative
Financial
Instruments
Ps. 226,749
(122,527)

Total
Stockholders
Equity
Ps. 1,380,317
80,394

Ps. 104,222

Ps. 1,460,711

The accompanying notes are part of the consolidated financial statements.

Page 12

First Quarter 2012 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, 2012 and 2011.
(In thousands of Mexican pesos (Ps.))
March 31,
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

Ps. 324,363

(Increase) decrease in:

Trade receivables net
Other accounts receivable net
Inventories
Prepaid expenses
Increase (decrease) in:
Trade accounts payable
Due to related parties
Advances from customers
Income tax payable
Other liabilities
Net cash used in operating activities

Ps. 93,347

15,380
(260,357)

14,026
(96,558)

10,139
117,495
207,020

10,028
99,615
120,458

212,072
(81,778)
(257,933)
49

(28,230)
(59,678)
(75,252)
5,314

87,013

516
165,513

(163,326)
(881)
177
(9,704)
(16,490)
(227,612)

6,043
324
6,367

(2,709)
(74,697)
(77,406)

(1,446)

Investing activities:
Purchase of machinery and equipment
Other assets
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
Interest paid
Commissions on Financing Activities
Net cash (used in) provided by financing activities
Cash:
Net decrease in cash
Cash at beginning of year
Cash at end of year

March 31,
2011

50,000
(59,000)
3,929
(11,879)

(6,265)

(103,441)
(170,391)

(78,282)
(3,637)
(38,184)

1,489
415,721

(343,202)
491,939

Ps. 417,210

Ps. 148,737

The accompanying notes are part of the consolidated financial statements.

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First Quarter 2012 Earnings Release

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

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

1. Inventories

Land under development

Housing units under construction
Urbanization and related equipment

As of March
31, 2012
Ps.947,997
462,746
1,218,190
Ps. 2,628,933

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

2. Notes payable to financial institutions

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%

As of
December 31,
2011
$ 50,000
9,000
$59,000

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

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First Quarter 2012 Earnings Release

3. 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 12.53% and 13.75% for the year 2011
and 2010, respectively, with various maturities through 2015.
Capital lease agreements to acquire trucks bearing annual fixed
interest rate of 13.62%, with various maturities through 2015.
Capital lease agreements to acquire vehicles, bearing annual
fixed interest rate of 11.58 %, with various maturities
through 2015.
Capital lease agreements to acquire computers, bearing annual
fixed interest rate of 9.47%, whit various maturities through
2014.
Loan to pay suppliers bearing fixed interest rate of 11.80%,
with various maturities through 2015.

As of March
31, 2012
Ps. 2,483,728
379,047
80,605

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

77,329

76,717

6,247

7,185

9,137

9,721

13,978

15,458

3,930
3,054,001
(54,131)

Less Current portion

Ps. 2,999,870

Long-term debt

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

As of March 31, 2012, long-term debt maturities were as follows:

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

Ps.

37,111
96,630
3,354
2,862,775

Ps. 2,999,870
4. 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 March 31, 2012 was
$263,236, respectively, as further detailed below (notional amounts in millions):
Instrument
Coupon Swaps
Forward
Embedded derivatives asset

Type of
hedge
Cash flow
Cash flow

Notional
US$277
US$40

March 31,
2012
Ps.222,237
5,534
35,465
Ps.263,236

Total asset

* * * * *

Page 15