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Investor Presentaiton

36 Company Real Estate group: Alimentos HP, S.A. de C.V. (Alimentos) Percentage of shareholding 2009 2008 100% 100% Activity Leasing of property, machinery and equipment to group companies. Comercial de Finanzas Netesa, S.A. de C.V. (Netesa) 100% 100% Real estate company. 100% 100% Real estate company. Herpons Continental, S.A. de C.V. (Herpons Co.) 100% 100% 100% Real estate company. Quicolor de México, S.A. de C.V. (Quicolor) Promotora Hercal, S.A. de C.V. (Hercal) Merged in 2009: Hermarcas, S.A. de C.V. (Hermarcas) Arpons, S.A. de C.V. (Arpons) Inmobiliaria Enna, S.A. de C.V. (Enna) Yavaros Industrial, S.A. de C.V. (Yavaros) d. Basis of preparation - 100% Leasing of real property and storage services provided to group companies. Administrative and organizational advisory services (merged into Grupher). 100% Currently idle (merged into Netesa). 100% Real estate company (merged into Netesa). 100% Up to November 23, 2007, date of sale of its assets and liabilities, this company was mainly engaged in fishing activities, stockpiling and industrialization of agricultural products, processing and commercialization of sea and agricultural products. The accompanying consolidated financial statements at December 31, 2009 and 2008 are in compliance with the provisions of Mexican Financial Reporting Standards (NIF, for its acronym in Spanish) to ensure fair presentation of the Company's financial position. The Company prepared its statements of income under the classification criterion based on the nature of the items thereof, whose main characteristic is that it separtes the cost of sales from other costs and expenses. Additionally, for a better analysis of its income position, the Company has considered it necessary to show the operating income separately in the statement of income, which is a common disclosure practice in the industry to which the Company belongs. According with the guidelines of NIF B-10"Effects of inflation" (NIF B-10), the Mexican economy is currently in a non-inflationary environment, as cumulative inflation has remained below 26% in the past three years (threshold for an economy to be considered non-inflationary). Therefore, as of January 1, 2008, recognition of the effects of inflation on the financial information is no longer required (disconnection from inflationary accounting). Consequently, the figures contained in the accompanying financial statements at December 31, 2009 and 2008 are stated in historical Mexican pesos, modified by the cumulative effects of inflation on the financial information recognized up to December 31, 2007. The inflation rates are as shown below: Year's inflation Cumulative inflation of the past three years December 31 2009 3.57% 2008 6.53% 14.48% 15.01% In accordance with the provisions of the NIF B-15: investment in foreign subsidiaries are identified as foreign operations, and were converted to the reporting currency as described in Note 2p. e. New NIFs effective as of January 1, 2009 Beginning on January 1, 2009 the following NIF issued by the Mexican Financial Reporting Standards Board (CINIF for its acronym in Spanish), have been adopted by the Company, without significant effects, for the preparation of these financial statements. The accounting policies are disclosed in the Note 2. NIF B-7 "Business acquisitions" NIF B-8 "Consolidated and combined financial statements" NIF C-7 "Investment in associated companies and other permanent investments" NIF C-8 "Intangible assets" NIF D-8 "Share-based payments" f. International Financial Reporting Standards In January 2009, the National Banking and Securities Commission published the changes to the Sole Circular for Issuers, making it mandatory to present financial statements prepared as per International Financial Reporting Standards (IFRS) as from 2012, and allowing for early adoption of these changes. Accordingly, the Company has established and initiated the procedures that allow it to comply with said requirement on a prompt basis. At the date of issuance of these financial statements, it has not been determined whether or not adoption of IFRS could generate an important effect on the Company's consolidated financial statements. g.Authorization of financial statements The accompanying consolidated financial statements and notes thereto were authorized for issuance on February 18, 2010 by Héctor Hernández Pons Torres and Ernesto Ramos Ortiz. CONSISTENCY IN OUR STRATEGY
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