DESCH

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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.

¿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:

¿W

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SALES

Millions of Dollars

2,2161,959

1,717

2003 2004 2005

Domestic Exports

CAGR 14%

EBITDA

127170

199

2003 2004 2005

CAGR 26%

Millions of Dollars

NET DEBT

990

674587

62

43

44

2003 2004 2005

Net Debt Cash

41%

Millions of Dollars

DEBT PROFILE

185

315

200

16 154

105 110130

231

2006 2007 2008 2009 2010

Dec 2004 Dec 2005Millions of Dollars

Core

Bu

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Consumer

AutomotiveChemical

Real Estate

Ch

em

ical

Bu

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ess

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

Products and Aplications

Synthetic RubberSynthetic RubberPRODUCTS AND APPLICATION

PolystyrenePolystyrene

Disposable cups and plates , packingDisposable cups and plates , packingPlastics, tires, pavementsPlastics, tires, pavements

PhosphatesPhosphates

Detergents Detergents

Carbon BlackCarbon Black

TiresTires

Chemical

SALES

319 388 437

276

341405595

729842

2003 2004 2005

Domestic Export

Chemical

Millions of Dollars

Chemical

EBITDA

3750

64

02003 2004 2005

Millions of Dollars

Chemical

Au

tom

oti

ve

Bu

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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

• 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.

Automotive

Products and AplicationsPRODUCTS AND APPLICATION

PistonsPistons

Ring GearRing Gear

Manual TransmissionsManual Transmissions

Automotive

Axles Axles

Products and AplicationsPRODUCTS AND APPLICATION

Stamping, Painting & AssemblyStamping, Painting & Assembly

Automotive

Axe TubeAxe Tube

End Yokes and Diff. CasesEnd Yokes and Diff. CasesGearsGears

Products and AplicationsPRODUCTS AND APPLICATION

SealsSeals

Automotive

Diesel and Gas PistonsDiesel and Gas Pistons Steel WheelsSteel Wheels

SALES

197 223 257

394431

498

755

654

591

2003 2004 2005

Domestic Export

Automotive

Millions of Dollars Automotive

Automotive

EBITDA

6051 51

2003 2004 2005

Millions of Dollars

Automotive

Con

su

mer

Bu

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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

Products and AplicationsPRODUCTS

U.S.A ProductsU.S.A Products

SalsasSalsasChilesChiles

Consumer

ParticleParticle BoardBoard(Rexcel)(Rexcel)

SALES

Consumer

Millions of Dollars

298 344 382

108118

124

506462

406

2003 2004 2005

Domestic Exports

Consumer

EBITDA

31

55 60

2003 2004 2005

Consumer

Consumer

Millions of Dollars

Real Esta

teB

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Real Estate

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.

Dine’s specialties are:

– High income market segment

– Unique developments

– Large scale projects

– High specifications, design and quality

Real Estate

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 - ResidentialPacific 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

Real Estate

Project Pipeline

Punta Mita

Real Estate

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.

Real Estate

Punta Mita

Market

• 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.

• 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 requirementsof our clients by offering:

– Ready to use residential units,

– Residential homesites for singlefamily,

– Multifamily residential lots fordevelopers.

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.

Real Estate

Punta Mita

Current StatusResidential 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.

Real Estate

Punta Mita

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.

Real Estate

Current Status in Other Projects

Real Estate

Future Overview

What’s 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.

Real Estate

SALES

116111105

2003 2004 2005

Millions of Dollars

Real Estate

LAND BANK (Book Value)

324292

263

2003 2004 2005

Real EstateMillions of Dollars

Real Estate