Investor Presentaiton
o. Exchange gain
Transactions in foreign currencies are initially recorded in the recording currency, applying the exchange
rates prevailing on the dates they are entered into and/or settled. Assets and liabilities denominated in
such currencies are translated at the exchange rate prevailing on the balance sheet date. Exchange gains
or losses arising from fluctuations in exchange rates between the transaction and settlement dates, or
valuation at the period close, are applied to income, as a component of the Comprehensive Financing
Result (RIF, for its acronym in Spanish), except for exchange differences, which are capitalized along with
other components of the RIF, as part of the cost of ratable assets.
p. Foreign currency transactions
The financial statements of foreign subsidiaries (foreign currency transactions) maintain the same
recording and functional currency. Therefore, said figures served as the basis to convert the financial
information of foreign operations to the Company's reporting currency, considering a non-inflationary
environment, as shown below:
i. The balances at December 31, 2009 and 2008 shown for assets and liabilities stated in the recording
currency were translated at the closing exchange rate of Ps13.04 and Ps13.77 to the US dollar,
respectively.
ii. Stockholders' equity at December 31, 2007 was translated applying the exchange rate at that date and
movements in 2009 and 2008 were translated at the historical exchange rate.
iii. Revenue, costs and expenses of 2009 and 2008 were translated at the historical exchange rate was of
Ps13.51 and Ps11.14 to the US dollar, respectively.
iv. In light of the above, a conversion effect was recognized in stockholders' equity.
q.Information per segment
The Standard B-5 "Financial information by segments" of NIF, requires that the Company analyze its
organizational structure and its reporting system for the purpose of identifying segments. With respect
to the years presented, the Company has operated the following business segments: domestic and
foreign.
These segments are managed independently, since the goods they handle and the markets they serve
are different. Their activities are performed through different subsidiaries. Operations between operating
segments are recorded at market value.
Revenue by segment is shown according to the manner by which Management analyzes, directs and
controls the business and operating income. See Note 11.
r. Barter transactions
At December 31, 2009 and 2008, Grupher's individual financial statements show an account receivable
arising from barter transactions ("Trade Credits"), conducted in foreign currency. These operations are
conducted with independent third parties and at the closing of said periods, show a balance of Ps3,655
and Ps77,501, respectively.
s. Joint ventures
The contributions made to the joint ventures were initially recorded at fair value as per IFRS 31 "Interest
in Joint Ventures", to be applied on a supplementary basis for NIF purposes.
NOTE 3 FOREIGN CURRENCY POSITION:
a. At December 31, 2009 and 2008, the Company and its subsidiaries had the following monetary assets
and liabilities in US dollars:
Assets
Liabilities
Net long (short) position
Consolidated
2009
2008
Dls. 25,542 Dls. 12,944
(20,935)
(23,031)
Dls. 4,607 (Dls. 10,087)
At December 31, 2009 and 2008, the exchange rate was Ps13.04 and Ps13.77 to the dollar, respectively.
At February 18, 2010, date of issuance of the audited financial statements, the exchange rate had not
varied significantly.
In October 2008, the Mexican peso suffered a devaluation against foreign currencies; as regards the US
dollar, the exchange rate slipped approximately 25% with respect to the exchange rate at January 1,
2008. As a result, the Company incurred a consolidated exchange loss of Ps845 at December 31, shown
in the income statement in the RIF.
At December 31, 2009 and 2008, the Company and its subsidiaries had contracted no hedging against
exchange risks, except for McCormick, which at December 31, 2009, maintained hedging instruments to
protect against exchange risks, as described in Note 4.
b.Following is a summary of the main operations conducted by the subsidiaries (excluding the
acquisition or sale of machinery and equipment for own use), along with income and expenses in
thousands of dollars:
Exported merchandise
Importations of finished products
Royalties and technical service expenses
Net
Year ended
December 31,
2009
2008
Dls. 71,532 Dls.
67,507
(22,315)
(33,453)
(12,129)
(12,569)
Dls. 37,088
Dls. 21,485
39
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