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Investor Presentaiton

CONSISTENCY IN OUR STRATEGY Гсол CONSOLIDATED STATEMENT OF CASH FLOWS Grupo Herdez, S.A.B. de C.V. and Subsidiaries. (Amounts stated in thousands of Mexican pesos) Year ended December 31 2008 2009 • Operations: Earnings before income tax Items related to investment activities: Discontinued operations Depreciation Loss on sale of fixed assets Net pension cost Interest earned Ps 1,309,402 Ps 931,427 (9,153) (2,842) 120,445 113,754 4,245 5,472 17,191 15,978 (33,965) (32,749) Equity share in earnings of associated companies (43,810) (24,175) Other income without cash flow 22,636 (208,474) Items related to financing activities: Interest expense 129,923 152,059 Subtotal of items related to investment and financing activities 1,516,914 950,450 Increase in accounts receivable (64,794) (762,047) Decrease (increase) in inventories 48,320 (134,993) Decrease in other assets 26,586 24,833 (Decrease) increase in suppliers (140,990) 209,430 (Decrease) increase in other accounts payable (25,831) 154,997 Income tax paid Net cash flows from operating activities Investment activities: Business acquired Collected interests (178,745) 1,181,460 (201,465) 241,205 (176,793) (44,000) 33,480 31,439 Acquisitions of property, machinery and equipment (296,075) (101,618) Collections on sale of property, machinery and equipment 101,840 Net cash flows from investment activities (337,548) 47,576 (66,603) 843,912 174,602 Cash surplus to be used in financing activities Financing activities: Long-term loans (paid) received Interests paid Dividends paid Repurchase of shares Net cash flows from financing activities Net increase of cash and other cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 34 (139,806) 377,519 (121,633) (141,857) (359,045) (324,179) (10,816) (224) (631,300) (88,741) 212,612 85,861 211,585 125,724 Ps 424,197 Ps 211,585 Héctor Hernández Pons Torres General Director Ernesto Ramos Ortiz Administration and Corporate Practices Director The accompanying nineteen notes are an integral part of these consolidated financial statements, which were authorized for issuance on February 18, 2010 by the undersigned officers.
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