alfa conference day 2010_english.pdfalfaobtained excellent results in 2009. strategic strengths of...

ALFA CONFERENCE 2010

Mexico City

February 4th, 2010

This presentation contains forward-looking information based on numerous variables and assumptions that are inherently uncertain.

They involve judgments with respect to, among other things, future economic, competitive and financial market conditions and future

business decisions, all of which are difficult or impossible to predict accurately. Accordingly, results are likely to vary from those set

forth in this presentation. Copyright © 2010 ALFA, S.A.B. de C.V. All rights reserved. Reproduction and distribution forbidden without

the prior written consent of ALFA, S.A.B. de C.V.

REGISTRATION & WELCOME

2009 RESULTS

ALFA’S STRATEGIC EVOLUTION

OUTLOOK FOR 2010

2009 RESULTS


OUTLOOK FOR 2010

2008 2009

Lower revenues in 2009 due to commodity prices and Nemak’svolumes. However, record EBITDA thanks to strong petrochemical performance.

4

2008 2009

ALFARevenues(U.S. $ Billions)

10.6

8.5

ALFAEBITDA(U.S. $ Millions)

9641,055

EBITDA margin (%) 9.1 12.4

-20% 9%

EBITDA by group(U.S. $ Millions)

5

2008 2009

293

428Alpek

2008 2009

261 273

2008 2009

315261

2008 2009

121104

Sigma

Nemak Alestra

46%5%

17%14%

Lower capital expenditures were needed since Alpek’s investment program was completed in 2008.

ALFACapital Expenditures(U.S. $ Million)

6

ALPEK & NEMAK

Mainly asset replacement.

SIGMA & ALESTRA

Capacity expansion, distribution, new products.

2008 2009

572

288

U.S. $ 288 million

Alestra & Others

73

Sigma

74Nemak

75

Alpek

66

Refinancing of Nemak’s debt, plus Alestra, Petrotemex and Sigma’s bond issues extended average life of consolidated debt …

ALFAMaturity Profile(U.S. $ Millions)

7

BeforeRefinancing Dec. 09

Average Life (years) 1.8 4.2

351453

370267

917

300

121 134 118

250

809

696

891

469

60

409

00 0 117

0

09 10 11 12 13 14 15 16 17 18 19

Jun. 2009Dec. 2009

2008 20092008 2009

… which, coupled with better EBITDA, reinforced the financial condition.

ALFAFinancial Ratios

8

Net Debt / EBITDA*(Times)

Interest Coverage*(Times)

3.5

2.1

3.1

4.3

* 4Q EBITDA times four

2009 RESULTS


OUTLOOK FOR 2010

ALFA obtained excellent results in 2009.

Strategic strengths of businesses proved their value in a crisis year.

ALFA’s human capital talent was demonstrated dealing with a huge crisis.

Confidence from financial community was key.

Streamlined operations now provide even better cost competitiveness than before the crisis.

No need for substantial capital expenditures in the short term.

No meaningful financial commitments in 2010 after 2009 refinancing.

10

Economy in early stage of globalization; 3 crises in 16 years.

11

Salinas1989 – 1994

Zedillo1995 – 2000

Fox2001 – 2006

Calderón2007 – 2012

GrowthReal GDP, avg. (%) 3.9 3.5 2.4 -0.9

InflationAnnual Avg. Rate

(%)16.9 22.0 4.7 4.6

Exchange RatePesos/U.S. $; avg. 3.0 8.3 10.5 11.9

Highlights- NAFTA- Privatizations, deregulation

- Tequila Effect- Fobaproa- Asian Crisis

- “9/11”- US recession

Global commodities crisis

- World financialcrisis

Sources: PIB IMF, CPI IMF, TC Bloomberg

In 1993, ALFA and its environment were very different.

ALFA

Concentrated in Steel and Synthetic Fibers.

Manufacturing operations, mainly .

Focused in Mexico – Incipient exports.

Low capital expenditures during the 80’s.

Recovering financial health.

Environment

Mexico was a closed economy – highly volatile and risky .

Beginnings of globalization – NAFTA.

Oil-based economy

12

ALFA in 1993

13

Portfolio*

Sales EBITDA

(U.S. $ Millions)

2,492

271

Mexico

* Breakdown based on revenues

Size Footprint

New strategy was established in light of then current environment.

ALFA strategy

Complete modernization of commodity-product businesses; grow through “brownfield” investments.

Aggressive growth in high-potential, high value-added businesses.

Divestitures under adequate conditions.

Move into new business areas with great appeal where ALFA could achieve sustainable competitive advantages, e.g.: cogeneration.

14

• Investments to modernize and increase efficiency (global competitiveness).

• Modernization continues. Greater focus on products with added value (galvanized steel, painted and ultra-thin sheets, etc.).

• Incursion into Venezuela due to competitive advantages.• Advancements in HYL direct-reduction technology.

• Overcome global steel industry crisis.• Divestment.

15

96

97

98

99

95

Hylsamex sale

Industry Analysis, Strategy Review Hylsamex Partial Spin-off

Hylsa Bekaert sale

Pickling Expansion

Galvanized and Painting Line

HYL New Plant

Minimill start up

Investments for Plant Modernization

05

93

287

295

Acerex

Minimill Line 2Pickling

Expansion

Sendzimir Cold Mill

Investment in Sidor

New FurnacePuebla Plant

04

02

Self directed teams

50% Purchase Peña Colorada Mine

94Continuous Reactor Sponge

Iron PueblaPainting Line II

First SAP in Mexico

Third Galvanized Line

Sponge Iron capacity

Sale of Sidor stake

Investments

Acquisitions and spin-offs

Technology, Human Capital and Other Relevant Events

EBITDA

U.S. $759 M

Hylsamex IPO

Debt Restructure

Insulated Panels (Galvamet)

Narrow Gauge Rod

ISO 9002

Metallic hood

(Galvateja)

Galvament Line IIPipe Mill No. 6

“Aquila” Mine

Mining capacity growth

EBITDA U.S. $89 M 16

Revenues(U.S. $ Million) 9% CAGR

EBITDA(U.S. $ Million) 21% CAGR

Net Debt / EBITDA(Times)

6.5

4.53.4 2.7 2.9

4.7 4.5 5.1

7.9

5.3 5.4

0.7

Commoditiescrisis

EBITDA/RevenuesMargins(%)

10 16 25 25 24 23 22 18 13 15 13 33

* Divested from ALFA

93 94 95 96 97 98 99 00 01 02 03* 04*

93 94 95 96 97 98 99 00 01 02 03* 04*

93 94 95 96 97 98 99 00 01 02 03* 04*

921 1,006 9401,151

1,395 1,265 1,373 1,4401,211 1,356 1,449

2,305

89163 233

287 334 296 295 253155 197 187

759

17

In summary,

In 1994, Hylsamex had obsolete assets, limited capacity, threat from open market. Low economic value.

¿Modernize or sell? Company was modernized, capacity expanded, value added products introduced. Substantial EBITDA increase.

Worst steel industry crisis in modern history was successful faced.

Company spun-off in the height of the cycle, for significantly more than would have been obtained prior to modernization (U.S. $ 2.4 billon).

18

• Plants modernization with low specific investments.• Entry into PP and EPS.

• Low cost producer.• Modernization and growth in fibers.

• Strengthened position in polyester chain – acquisition of PTA/PET assets in U.S.*, increase PET capacity.

• Profitable growth through scale and learning curve.

• Exit from non-profitable businesses – Nylon, DMT.• Growth in strategic businesses – PTA, PET, PP, EPS.• Energy optimization.• Entry into natural gas business in Texas.

* First major acquisition outside Mexico (2001) 19

94

97

98

99

01

02

03

95

Altamira EPS ExpansionSale of Nylon and Lycra to Koch (keeps Univex, Nyltek)

DAK PET Cooper River start up

JV Akra Teijin in Polyester Fibers

PTA and PET acq.in U.S. (DAK)

Splitter at Indelpro

Enertek cogeneration start up

PTA Altamira start up

Polioles EPS start up

Colombin Bel Acquisition

05

06

07

Natural gas in Texas

DAK PET Cape Fear start up

Acq. Eastman PET Mexico and Argentina

PTA Altamira second expansion

08PP Indelpro II

Expansion

Petrocel (DMT) shut down

Enertek spin-off (Iberdrola)

InvestmentNylon 6,6

93

345

282

09Focus on greater operational efficiency

Increased PP market share in Mexico

Temex capacity growth

Acquisition of Nylon and Univex

Luxor Acquisition (Terza)

Polyester filament Expansion

JV with Shaw to recycle PET

PTA Altamira debottlenecking

Acq. of polyurethane business from BASF

Polioles electricity cogeneration

Petrotemex Energy Efficiency Project 04

First carbon bonds

Nylon 6,6 Expansion

Emission reduction project registered before UN

EPS capacity expansion

EBITDAU.S. $ 428 M

50% sale of Terza to Shaw

ISO 9000 in Polioles

ISO 9002 Nylon de México and Indelpro

Stake acq. Pemex in PTA

Stake acq. Akzo Nobel in Chemical fibers

CPU Fibers start up 96

Texturized Polyester new plant

Lycra Expansion

PTA Cosoleacaque Expansion

Textile Nylon Expansion

Polioles Innovation Project

Fibers Self Managed teams

EBITDA U.S. $ 126 M

Investments



20

126 170

329 351 356 345 309 327

261 314 282 311

385 327

278 293

428

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

826 994 1,423 1,472 1,560 1,350 1,445 1,754 1,663 1,898 2,209

2,738 3,204 3,410

4,007 4,709

3,971

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

21

EBITDA(U.S. $ Million)

EBITDA/RevenuesMargin(%)

8% CAGR

10% CAGR

2.7 2.9

1.3 1.4 2.1

2.7 3.0 3.2

3.8

2.6 2.7 2.2

0.8

1.5 2.1

2.5

1.3

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09


CommoditiesCrisis

Revenues(U.S. $ Million)

15 17 23 24 23 26 21 19 16 17 13 11 12 10 7 6 11

In summary,

In 1994, Alpek focused on DMT and synthetic fibers.

As the economy opened up, it was necessary to modernize and expand plants at the lowest possible investment cost.

Synthetic fibers environment changed in the face of China joining the WTO and illegal trade.

It was decided to reduce focus on fibers, strengthen PTA and PET, and expand EPS and PP.

Divestment of non-profitable businesses.

Incursion into natural gas in Texas.

22

• Divesture of fresh meats business.• Boost to refrigerated meats and distribution.• Entry into dairy products and other refrigerated products.• Product development & formulation.

• Investments in brand equity.• Strengthen refrigerated distribution network.• Reinforce position in regional cold cuts.

• Human talent development.• Organic growth, distribution and acquisitions.• Strengthen position in dairy products.• Consolidate position in cold cuts.

• Growth of current business.• Innovation system.• International expansion.

23

80

93

94

97

99

02

03

04

91

New Zealand Dairy Products in

MexicoRefrigerated Pizzas

Refrigerated prepared foods

ChenDairy products in

Mexico

Distribution network in the U.S.

Acquisitions Central America and the Caribbean

Dairy dessertsGalicia

Cold cuts in MexicoCold Coffee

Exports to U.S.

TangamangaCold cuts in Mexico

San AntonioCold Cuts in Mexico

Acquisition of distributors

Yoghurt plantPrepared frozen food

Cheese manufactureOscar Mayer Distribution

in Mexico

Launch of turkey line Divesture of Fresh MeatExports to Central America

ALFA acquires Sigma

05

06

07

Nayar

Cold cuts in MexicoFood Service

Bernina

Cold cuts in Mexico

MCP

Dairy products in U.S.

IASSA

Cold cuts in Mexico

08U.S. cold cuts plantAcquisition Braedt

Cold cuts in PeruAcquisition Longmont

Cold cuts in U.S.

Reinforced distribution network

EBITDA U.S. $ 18 M

09

46

104

218

Yoghurt capacity expansion

Awards from Supermarkets

Integrated Health “SI” program

First CADI Tepoztlán

300k retail clients

Cost and expenses reduction

Bel DistributionFamily Responsible

Company

ANTAD Award (3rd time)

Sigma Innovation system

Philadelphia distribution

Guten

Cheese plant

Atitalaquia Plant

ANSPAC and SIGMA university

100,000+ point of sale refrigerators

2,000+ vehicle network

Young Talent program

First SAP in food industry

Yoplait Franchise

Product development

90

Automated distribution center

Sigma IPO

Product formulation development continues

EBITDAU.S. $ 273 M

Investments



24

International Footprint Market share (%)

25

Plants

Distribution Centers

15

3451

Cold Cuts

16

59

25

Cheese

38

42

20

Yogurt

Sigma

Next competitor

Others

Next competitor

Others

Sigma

Others First competitor

Sigma

18 32 30 46 47 36 3668 86 104 121

146174 181 184

218 236 239261 273

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

249 299 355 395 422 319 398 540 598 687 848 943 1,0081,0511,220

1,6041,789

2,0682,368

2,187

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

26

12% CAGRRevenues(U.S. $ Million)

EBITDA(U.S. $ Million) 15% CAGR


EBITDA/Revenues Margin(%)

TequilaEffect

Revenue drop due to peso devaluation

0.9

0.3

1.51.7

0.8

2.2

2.7

1.8 1.9

1.41.6

1.00.7 0.6

0.9 0.91.2

1.72.0 1.9

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

7 11 8 12 11 11 9 13 14 15 14 15 17 17 15 14 13 12 11 12

In summary,

At the beginning of the 90s, Sigma focused on red meats, had a limited product portfolio, no brands or self distribution. Strategy was changed.

Cold cuts were boosted, dairy product offering broadened, distribution grew organically and through acquisitions.

Investment in brand equity, entry into regional markets.

Investment in R&D and innovation . Development of human talent.

Leadership positions obtained in cold cuts and cheese.

International expansion.

27

• Competitive in quality and costs.• Capacity expansion in Monterrey.• Technologically dependant on Teksid.• Start of exports to the U.S.

• Development of technology and technical skills.• Incursion into engine blocks.• Improvement in product launching.

• Scale and expansion in North America.• Entry into Europe.• Greater emphasis on skill development and R&D.

• Client portfolio diversification.• Global expansion: acquisitions of Hydro, Teksid and Castech.• Synergies and efficiencies.

28

97

98

00

03

Teksid, Hydro and Castech

Plant VI

Rautenbach Germany

100 millionth head produced

Acq. Of Ford Canada plants

First aluminum engine block produced

PDC built in Monterrey

07

09Production relocation

06

05

02

Entry into Europe with Czech plant

95

Focus on product development

26

75

120

08

93

Monterrey Melting Center

Reduction in fixed costs

301

Acquisitions integration

Acq. Of Teksid stake (20%)

12th prize in 13 years from GM as best powertrain supplier

79JV with Ford

Nemak Founded

81

85GM and Chrysler added to customer portfolio

First engine head for Ford

Acq. of Comalco for engine block technology

Leadership+ Program

96

SAP Installation

QS 9000

Plant III

Plant IV

Plant V

Exporter Award

U.S. sales, Plant II

Talent Development

(Nemak 2000)

Technology Development start up

EBITDA

U.S. $ 14 M Investments



EBITDA

U.S. $ 261 M

29

Nemak Global Footprint

30

CanadaU.S.

ChinaMexico

Argentina

Brazil

Germany

Poland

HungarySlovakia

Czech RepublicAustria

14 25 26 36 38 4469 75 87

114 120 132 153 146

301 315261

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

79 113 118 144 197 222 339 335705 800 844 970

1,243 1,336

2,897 3,026

1,949

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

31

22% CAGR

20% CAGR




Global and auto crises


1.0 1.3 1.5 1.7

3.4 3.52.6

3.4 3.22.6 2.5

2.1 2.12.8

3.3 3.0

4.8

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

18 22 22 25 19 20 20 22 12 14 14 14 12 11 10 10 13

In summary,

In 1994, Nemak was technologically dependant on Teksid. It had limited exports to the U.S.

Investments in R&D; technical skills and own technologies developed.

Leadership in North America obtained.

Diversification to engine blocks.

Global presence and world leadership established through acquisitions. Best technological portfolio in the industry.

32

• Opening of telecom market.• Competing in several market segments. First: LD (voice).• Consumer and enterprise markets.• Unfavorable regulation.

• Focus on data and enterprise.• AT&T Global Network (AGN).

• Bancomer stake bought back.• Transformation to value added services.• Strong presence and differentiation in enterprise

segment.• Integrated networks and convergent services.

33

95

03

05

New brand: Alestra

Buy back of Bancomer stake

Shareholder restructure due to AT&T takeover by SBC

07

06

110

100

119

00Strategic

repositioning

JV with AT&T

Financial Restructure

U.S. $300 M bond

ISO 27001 Information security

AT&T Global Network

Leadership in networks (e.g., SAT)

965,000 Kms

network built

09

Merger with Unicom (Telecom Bancomer)

First LD call1 Million client / 1 Bn

Minutes 97

99EBITDA > 0U.S. $570 M bond issued

U.S. $ 200 m bond

Value Added Services (Data and Internet)

ISO 9002

Centro Experto convergence portfolio

Innovation Program

Boost to IP / Broadband services

Dot.Com crisis

EBITDA

U.S. $ 104 M

EBITDAU.S. $ 53 M

Investments



34

-113 -124

30 53 59 82110 96 100 110 119 121 104

97 98 99 00 01 02 03 04 05 06 07 08 09

192313

398 463 413 447 501419 366 391 453 425

345

97 98 99 00 01 02 03 04 05 06 07 08 09

35

5% CAGR


13% CAGR




-2.5 -2.3

10.4 8.8 9.5 7.53.4 3.6 3.1 2.4 2.0 1.8 2.0

97 98 99 00 01 02 03 04 05 06 07 08 09

(59) (40) 8 11 14 18 22 23 27 28 26 28 30

Revenue drop due to peso devaluation

In summary,

Alestra founded in 1994 to serve the Mexican telecom market.

Unfavorable regulation.

Change of focus to value added services and market niche approach.

Strong presence and differentiation in enterprise segment.

36

Besides supporting it businesses, ALFA has developed other initiatives.

37

ALFA Foundation

Talent Development

Social Responsibility

R&D

Innovation

Energy

• Modernization of businesses focused on commodities (steel, synthetic fibers) to reach international competitiveness.

• Expansion of Sigma & Nemak. Creation of Alestra.

• Reinforce competitive position.• Increased value added to products.• Development of new products.

• Establish international presence.• Restructure portfolio with focus on companies with better

growth, greater value added and differentiation, less cyclical.

• Consolidate global presence.• Develop world-class competences.

38

Investments



93

94

95

96

97

98

99

01

02

03

04

05

06

07

08

09

00

Investments in modernization of plants

Acq. 50% Peña Colorada

Temex capacity increase

Portfolio DiversificationCheese manufacture

Oscar Mayer distribution in Mexico

Focus on Talent and Technology

Sales to U.S. with Plant II

Sponge iron continuous reactor Puebla

Painting Line III

Hylsamex IPO

Acq. Colombin Bel

Invest.Nylon 6,6

Acq. Polyurethanes business from BASF

Sale 50% Terza to Shaw

YoghurtFrozen prepared foods

JV with AT&TAcq. Comalco for

monoblock technologyLeadership

ProgramPolioles EPS

start upAcq. UnivexAcq. Sta. Rosa and Luxor

(Terza)ISO 9000 at

PoliolesPemex PQ privatization

study

New plant HYL

Line 2 Minimill

Expansion Decapado

Sponge iron cap.

Self-directed teams

Metallic tiling

(Galvateja)CPU fibers start up

Expansion PTA Cosoleacaque

Expansion Nylon Textile

Focus on product development

Plant III

5,000 Kms network

Merger with Unicom (Telecom Bancomer)

Galvanized and painting line

Cold millSendzimirAcq. Sidor stake Fine wires

ISO 9002

PTA Altamira start up

Expansion Polyester filament

ISO 9002 Nylon de México and Indelpro

Acq. stake Pemex PTA

Acq. stake. Akzo Nobel Chemical fibers

“San Antonio”Cold cuts MexicoAcq. Distributors

PDC* in Monterrey 20% stake in TeksidQS 9000

Plant IV

1st LD call Client 1 Million / 1 Bn. Minutes

First monoblock Fusion Center Mty“Tangamanga”

Cold cuts Mexico Capacity YoghurtCheese plantEnertek start upTexturized Polyester new plant

Expansion DecapadoNew oven

Puebla plant

Sale Hylsa Bekaert Galvanized Line IIISplitter for

PP at IndelproExpansion Nylon 6,6 to 27

Kta Expansion Lycra“Tangamanga” Capacity YoghurtCheese plantEBITDA > 0570 M dls bond

Strategic repositioning Value Added ServicesISO 9002 2 Ford plants in CanadaSAP Plant VSkill development

(Nemak 2000)

DAK – acq. PTA and PET in US from DuPont

Enertek sale (Iberdrola)

100 millionth headEnergy prize Export to US First CADI TepoztlánANTAD award Joint Venture Akra Teijin polyester fibersDebt restructure

Panel Line II (Galvamet)Pipe mill No. 6

DAK PET Cooper River start upEPS capacityAcq. Central America

and CaribbeanDairy desserts

“Galicia”

Cold cuts MexicoRefrigerated coffee Czech Republic plant

Debt restructure ~300 M bond AT&T Global Network

Refrigerated prepared food

“Chen”Mexico Dairy

Distribution network USPetrotemex emission reduction program

Industry analysis, strategic review Partial Spin-off Hylsamex

Hylsamex spin-offSale of Sidor stake Expansion Altamira

EPS to 165 KtSale of Nylon and Lycra to

Koch (keeps Univex, Nyltek)Repurchase 100% polyester fibers

“New Zealand “

Mexico DairyRefrigerated

pizzasStrengthening of

distribution networkWal-Mart

AwardPhiladelphia Distribution Rautenbach

Export award

Stockholder restructure due to SBC takeover of AT&T

Boost to IP services/ Broad band

Focus on operating efficiency

Increased PP market share in Mexico

JV with Shaw to recycle PETFirst Carbon bonds Cost and expenses

optimizationBel DistributionFamily Responsible

CompanyProduction relocationFixed costs reduction

Leadership in Network (e.g., SAT)

200 M dls bond

Expansion PP Indelpro IIPolioles electricity cogeneration

Emission reduction program registered before U.N. Cold Cuts U.S. plant

“Braedt”Cold cuts Peru

“Longmont”Cold cuts Mexico

ANTAD Award PMI** and Synergies

12th time in 13 years to receive best powertrain supplier award from GM

DAK PET Cape Fear start-up

Acq. Eastman PET Mexico and Argentina

Expansion PTA Altamira to 1.0 Mt

Petrocel shut down (DMT)

“Bernina” Cold cuts Mexico “MCP” U.S. Dairy

“IASSA” Cold cuts Mexico

“SI” integral health program

Sigma Innovation system

Teksid, Hydro and Castech

Our brand: Alestra

ISO 27001 Information security Experto Center

JV Newpek for nat. gas exploration in Texas

Debottlenecking PTA Altamira to 500 Kta

“Nayar” Cold cuts Mexico

Food ServiceHEB and Soriana Awards

300 k Retail clientsANTAD Award Guten

Planta VI Monterrey start-up

Repurchase BBVA stake

Innovation program

39

40

2009

Revenues EBITDA

1,055

* Based on revenues

8,536

Portfolio* Size Footprint: 16 countries

(U.S. $ Million) Canada

U.S.

China

Mexico

El SalvadorCosta Rica

Dominican Rep.

Peru

Argentina

Brazil

GermanyPolandHungarySlovakiaCzech Rep.Austria

93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09

271

1,0559% CAGR

ALFA Annual EBITDA(U.S. $ Million)

383

964

765807

642604

817

668

802802797825

731

617

964

14% CAGR

41

ALFA Total Shareholder Return vs. Securities in U.S. and BMV(1993 - 2009; CAGR in dollars)

U.S.Small

company

Largecompany

(S&P)

Long Term Gov.

Long Term Corporate

ALFA ** Mid TermGov.

T-Bills InflationBMV

Equities* Debt Risk free

Source: Bloomberg

* Adjusted for dividends

** Considering the distribution of Hylsamex´s CPOs as if they were monetized in Aug. 05

DJI

42

10.9 10.8

9.08.0 7.6 7.2

6.04.9

3.22.5

“ALFA has evolved from a regional company with

a commodity focused business portfolio, to a

global company with operations in 16 countries,

in three continents, in more profitable sectors,

with a greater potential for growth, with

products and services of increased added value

and differentiation, and with strong leadership

positions in its relevant markets.”

2009 RESULTS

ALFA’s STRATEGIC EVOLUTION

OUTLOOK for 2010

ALFA: Outlook for 2010

Sales growth explained by more volume, mainly.

45

Revenues(U.S. $ Billion)


2008 2009 2010e2008 2009 2010e

10.69.0 1,055

1,110

6% 5%

8.5 964

ALFA: Outlook for 2010

46

Capex(U.S. $ Million)

Net Debt(U.S. $ Million)

2008 2009 2010e2008 2009 2010e

288

36% -5%

3932,361 2,292

5722,408

* LTM

Net Debt to EBITDA* (times) 2.5 2.3 2.1

ALPEK: Outlook for 2010

Healthy demand supports revenue growth in 2010.

Lower PET margins explain drop in EBITDA .

2010 EBITDA: the third highest in history.

47



2008 2009 2010e2008 2009 2010e

4,0354,709

428372

2% -13%

3,971

293

SIGMA: Outlook for 2010

Volume growth basically explains revenue growth.

EBITDA and profitability trends are maintained.

48



2008 2009 2010e2008 2009 2010e

2,368 2,348261

286

7% 5%

2,187 273

ALESTRA: Outlook for 2010

Value added services growing 12% in 2010, offsetting decline in LD.

Richer revenue mix leads to EBITDA growth.

49



2008 2009 2010e2008 2009 2010e

425

341 121 112

-1% 8%

345104

Nemak: Outlook for 2010

Gradual improvement in industry conditions. Sales volume up 13%.

Nemak benefits from leaner cost structure after 2009 rightsizing.

50



2008 2009 2010e2008 2009 2010e

3,026

2,196

315 331

13% 27%

1,949261

2009 Results confirm robust strategic position of ALFA

businesses: record EBITDA despite the crisis.

The above was due to the profound transformation

experienced by ALFA: leadership positions in its relevant

markets, businesses with greater potential, human

capital, state-of-the-art technology.

Growth continues in 2010. Bases are set to keep on

generating value.

alfa conference day 2010_english.pdfalfaobtained excellent results in 2009. strategic strengths of...

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