JAVER REPORTS STRONG FCF GENERATION AND POSITIVE NET RESULT IN 1Q17
24 Abril 2017 - 3:32PM
BMV General Information
MONTERREY, NUEVO LEON, MEXICO - APRIL 24, 2017 - SERVICIOS
CORPORATIVOS JAVER S.A.B. DE C.V., (BMV: JAVER) ("JAVER" OR "THE
COMPANY"), THE LARGEST HOUSING DEVELOPMENT COMPANYIN MEXICO IN
TERMS OF UNITS SOLD, TODAY ANNOUNCED FINANCIAL RESULTS FOR THE
FIRST QUARTER ("1Q17") PERIOD ENDED MARCH 31, 2017. ALL FIGURES
PRESENTED IN THIS REPORT ARE EXPRESSED IN NOMINAL MEXICAN PESOS
(PS.), UNLESS OTHERWISE SPECIFIED.
1Q17 HIGHLIGHTS:- UNITS TITLED TOTALED 4,224 UNITS IN 1Q17, DOWN
8.4% FROM 4,613 UNITS IN 1Q16 GIVEN A LOWER AVAILABILITY OF
SUBSIDIES COMPARED TO 1Q16.
- NET REVENUES DECREASED 4.0% TO PS. 1,667.8 MILLION IN 1Q17 FROM
PS. 1,737.1 MILLION IN 1Q16, AS A RESULT OF THE DECLINE IN VOLUME,
HOWEVER, A 4.1% INCREASE IN THE OVERALL SALES PRICE CONTRIBUTED TO
OFFSET THIS EFFECT.
- EBITDA DECREASED 32.4% TO PS.140.0MILLION IN 1Q17 FROM PS. 207.0
MILLION IN 1Q16, MAINLY DUE TO THE VOLUME EFFECT, THE INCREASE IN
COST OF RAW MATERIALS AND GREATER ADVERTISING EXPENSES TO PROMOTE
THE NEW DEVELOPMENTS.
- NET RESULT WAS PS. 155.5 MILLION IN 1Q17 COMPARED TO PS. (164.1)
MILLION IN 1Q16, PRIMARILY DUE TO FX GAINS OF PS. 247.8MILLION
GIVEN THE APPRECIATION OF THE MEXICAN PESO, WHILE THE NET RESULT IN
1Q16 WAS AFFECTED BY THE PS. 376.8 MILLION IN COSTS INCURRED FROM
THE TENDER OFFER FOR THE COMPANY'S 2021 NOTES, EXECUTED DURING THE
PERIOD AFTER THE COMPANY'S IPO. NET INCOME PER SHARE WAS PS. O.56
AS OF MARCH 31, 2017 COMPARED TO THE NET LOSSPER SHARE OF PS.
(0.62) AS OF MARCH 31, 2016.
- FCF INCREASED 143.2% TO PS. 176.9 MILLION IN 1Q17, COMPARED TO
PS. 72.7 MILLION IN 1Q16, DRIVEN BY AN EFFICIENT INVENTORY CONTROL,
IMPROVEMENTS IN COLLECTIONS AND LOWER FINANCIAL EXPENDITURES.CEO
STATEMENT
MR. REN MARTNEZ, JAVER'S CHIEF EXECUTIVE OFFICER COMMENTED,
"THEFIRST QUARTER OF THE YEAR WAS MARKED BY SIGNIFICANT CHANGES IN
SEVERAL DIMENSIONS OF THE COMPANY. FIRST, AS WE ANNOUNCED IN OUR
4Q16 REPORT, WE SUCCESSFULLY COMPLETED THE TRANSITION PERIOD IN THE
GENERAL MANAGEMENT, TODAY UNDER MY LEADERSHIP, AND PREVIOUSLY
OCCUPIED BY MR. EUGENIO GARZA. DURING 1Q17, WE CONTINUED WITHTHE
DISCIPLINE WE ARE KNOWN FOR, REGARDING INVENTORY CONTROL, ALONG
WITH A CONSTANT EFFORT TO ALIGN OUR LAND RESERVES TO MARKET
CONDITIONS, RESULTING IN A WORKING CAPITAL CYCLE OF 273 DAYS,
SIGNIFICANTLY BELOW OUR PEERS' LEVELS. THE EFFICIENT MANAGEMENT OF
OUR WC CYCLE ALLOWED US TO GENERATE A FREE CASH FLOW OF PS. 176.9
MILLION, MORE THAN DOUBLE THE FCF GENERATED IN 1Q16.
OPERATIONALLY, ONE OF THE MAIN CHALLENGES PRESENTED DURING THE
QUARTER CONSISTED IN BEING ALERT OF THE RELEASE OF THE OPERATIONAL
RULES OF THE 2017 SUBSIDIES' PROGRAM, WHICH WERE PUBLISHED IN THE
MIDDLE OF FEBRUARY. THE EXERCISED BUDGET AS OF MARCH 31, 2017
DECREASED 31% IN THE STATES WHERE WE HAVE PRESENCE, COMPARED TO THE
EXERCISED AMOUNT OF THE 2016 SUBSIDY PROGRAM. THE 2017 SUBSIDY'
BUDGET IS EXPECTED TO GRANT AROUND PS. 4.8 BILLION FOR NEW HOUSING
THROUGH INFONAVIT AND PS. 270 MILLION THROUGH FOVISSSTE.
GIVEN THE CHANGES INTHE OPERATIONAL RULES, IT WILL NO LONGER BE
CONSIDERED THE VALUE OF THE HOUSING OR THE WORKERS' INCOME BASED ON
GENERAL MINIMUM WAGES (VECES SALARIO MNIMO OR "VSM"), INSTEAD, THE
UNIT OF MEASUREMENT AND UPGRADE (UNIDAD DE MEDIDA Y ACTUALIZACIN OR
"UMA"), WILL BE CONSIDERED AS REFERENCE, WHICH IS CALCULATED AND
PUBLISHED BY INEGI; SUBSIDIES CAN BE REQUESTED BY WORKERS EARNING
UP TO 4 UMAS (PS.9,180/MONTHLY), WHEN THE PRIOR RULES GRANTED
SUBSIDIES TO WORKERS WITH AN INCOME OFUP TO 5 VSM (PS.
11,475/MONTHLY). IN ADDITION, WORKERS EARNING BELOW 2.7 UMAS (PS.
6,196/MONTHLY) WILL HAVE PRIORITY FOR A GREATER AMOUNT OF SUBSIDY,
FOR THEMTHE SUBSIDY COULD BE BETWEEN PS. 41,000 TO PS. 80,000
DEPENDING ON THE HOUSING VALUE AND THE SCORE OBTAINED FOR THE
DEVELOPMENT WHERE THEY WILL BUY THE HOME. FOR THE WORKERS WITH AN
INCOME BETWEEN 2.7 UMAS AND 4 UMAS, THE SUBSIDY COULD BE
APPROXIMATELY BETWEEN PS. 9,000 AND PS. 23,000, ACCORDING TO THE
SAME CRITERIA ABOVE MENTIONED. THE OPERATIONAL RULES OF 2016 DID
NOT DIFFERENTIATE THE AMOUNT OF SUBSIDY OBTAINED BASE ON THE
WORKERS' LEVEL OF INCOME. DURING 2017, WE WILL HAVE THE SAME NUMBER
OF DEVELOPMENTS THAN LAST YEAR, HOWEVER, DURING 1Q17 WE HAD THE
IMPACT OF APPROXIMATELY 275 UNITS OF PROJECTS THAT WERE TITLED
DURING 1Q16, THIS EFFECT WILL BE DIMINISHED THROUGH THE YEAR.
THE DELAY IN THE STARTING OF THE SUBSIDY PROGRAM AND THEREDUCTION
OF THE BUDGET, CAUSED A DECLINE OF 63.9% OF THE SUBSIDIZED UNITS
SOLD DURING 1Q17, COMPARED TO SUBSIDIZED UNITS IN 1Q16. HOWEVER,
THE SHIFT IN STRATEGY TO BE READY WITH UNITS NOT RELIANT ON
SUBSIDIES WAS SUCCESSFUL, RESULTING IN A DECLINE OF VOLUME OF ONLY
8.4% COMPARED TO 1Q16, AND A DECREASE OF ONLY 4.0% IN REVENUES,
DERIVED FROM OUR IMPROVEMENTS IN THE SALES MIX TOWARDS THE MIDDLE
INCOME AND RESIDENTIAL SEGMENTS. EVEN WITH THE EFFECTS ABOVE
MENTIONED, WE CONTINUE BEING THE LEADER IN THE INFONAVIT SYSTEM IN
TERMS OF UNITS SOLD, WITH A MARKET SHARE OF 5.4% AT THE END OF
MARCH 2017, WHICH IS APPROXIMATELY THE DOUBLE OF MARKET SHARE
REGISTERED BY OUR CLOSEST PEER.
THE INFONAVIT INDICATORS REGARDING THE AMOUNT OF LOANS GRATED FOR
NEW HOUSING, SHRANK APPROXIMATELY 13.6%, FROM 53,144 LOANS AS OF
MARCH 31, 2016 TO 45,925 LOANS AS OF MARCH 31, 2017, AFFECTED BY
THE DECLINE OF 14,731 HOUSING ACTIONS YOYREPRESENTED BY SUBSIDIES
FOR NEW HOUSING.
IN ORDER TO MINIMIZE THE AFOREMENTIONED EFFECTS, INFONAVIT
INCREASED THE MAXIMUM AMOUNT OF THE LOANS FOR EACH INCOME SEGMENT,
EFFECTIVE ON APRIL 4, 2017, INITIALLY THE RISES WERE GOING TO BE
EFFECTIVE ON MAY. WITH THESE MODIFICATIONS, INFONAVITWILL BE ABLE
TO GRANT LOANS OF UP TO PS. 1.7 MILLION. IN AVERAGE, THE AMOUNT OF
THE LOANS GRANTED TO WORKERS, EARNING BETWEEN 1.3 AND 2.6 UMAS,
WILL BE INCREASING BETWEEN PS. 27,000 AND PS. 52,0000, THUS,
SIGNIFICANTLY OFFSETTING THE CONTRACTION IN THE SUBSIDY AMOUNT.
GIVEN THE EXPECTATIONS OF THE 2017 SUBSIDY PROGRAM, ACCORDING TO
THE NEW OPERATION RULES AND THE INCREASE IN THE INFONAVIT LOANS, WE
CONTINUE TO BE COMMITTED WITH THE FULFILLMENTOF OUR ANNUAL GUIDANCE
AND FCF GENERATION.
REGARDING THE DEVELOPMENTS THAT HAD SOME TITLING DELAYS DURING
2016, WE ARE PLEASED TO MENTION THAT ONE OF THEM STARTED TO TITLE
UNITS DURING 1Q17, PASEO KUSAMIL LOCATED IN QUINTANA ROO, WHICH IS
THE SECOND PROJECT WE HAVE IN THIS STATE, AND THAT WILL CONTRIBUTE
TOEXPAND OUR PRESENCE IN THE CITY. IN ADDITION, WE CONCLUDED ON
TIME AND WITH ATTRACTIVE YIELDS, OUR FIRST RESIDENTIAL PROJECT IN
MEXICO CITY, BULGARIA 533, THROUGH A JOINT VENTURE WITH WELT, ONE
OF THE MOST RESPECTED LOCAL DEVELOPERS.
REGARDING THE RE-FINANCING PROCESS, WEARE STILL WORKING IN AN
INTEGRAL STRUCTURE THAT ALLOWS US TO ELIMINATE THE FX EXPOSURE OF
OUR 2021 NOTES. FURTHERMORE, AS A CONSERVATIVE MEASURE, WE STARTED
A PROGRAM TO HEDGE THE PRINCIPAL OF OUR 2021 NOTES, AND NOT ONLY
THE COUPON PAYMENTS AS WE HAVE TRADITIONALLY HEDGED, MAINLY TO TAKE
ADVANTAGE OF THE POSITIVE RALLY OF THE FX IN THE LAST WEEKS.
OVERALL, WE ARE SATISFIED WITH THE QUARTERLY RESULTS AND WE ARE
CONFIDENT WITH OUR CAPACITY TO CONTINUE OFFERING ATTRACTIVE YIELDS
TO OUR SHAREHOLDERS." UNITS SOLD AND NET REVENUES
UNITS SOLD DECREASED 8.4% TO 4,224 UNITS IN 1Q17 FROM 4,613 UNITS
IN 1Q16. THE AFFORDABLE ENTRY LEVEL (AEL) UNITS DECREASED 19.3%
COMPARED TO 1Q16, WHILE THE RESIDENTIAL AND MIDDLE INCOME SEGMENT
DECLINED 8.1% AND 5.3%, RESPECTIVELY. THE SALES MIX CONTINUES WITH
THE FOCUS TOWARD THE MIDDLE-INCOME SEGMENT, WHICH REPRESENTED 70.9%
OF TOTAL UNITS SOLD AND 58.3% OF TOTAL REVENUES IN 1Q17; WHILE AEL
UNITS COMPRISED 17.9% OF TOTAL HOMES TITLED AND 11.0% OF TOTAL
REVENUES DURING THE SAME PERIOD. THE RESIDENTIAL SEGMENT
REPRESENTED 11.2%OF TOTAL UNITS SOLD AND 28.5% OF TOTAL
REVENUES.
COMMERCIAL LOT SALES INCREASED 43.1% TO PS. 36.1 MILLION IN 1Q17
FROM PS. 25.2 MILLION IN 1Q16, MAINLY FOR PLOTS OF LAND AVAILABLE
IN NEW PROJECTS THAT WILL START TITLING HOMES DURING THE
YEAR.PRICES: JAVER'S AVERAGE HOME SALES PRICE INCREASED 4.1% TO PS.
386.3 THOUSAND IN 1Q17 COMPARED WITH PS. 371.1 THOUSAND DRIVEN BY
THE SALES MIX IMPROVEMENT WITH A GREATER PROPORTION OF MIDDLE
INCOME UNITS, MAINTAINING THE RESIDENTIAL UNITS' LEVEL AND
DECREASING THE AEL FIGURE.
MORTGAGE PROVIDER MIX: INFONAVIT CONTINUED TO BE JAVER'S PRIMARY
MORTGAGE PROVIDER. DURING 1Q17, INFONAVIT (INCLUDING COFINAVIT)
REPRESENTED 93.9% OF TOTAL UNITS TITLED COMPARED TO 94.0% IN
1Q16.
SUBSIDIES: DURING 1Q17, SUBSIDIES REPRESENTED 20.1% OF TOTAL UNITS
SOLD COMPARED TO 50.9% IN 1Q16. VERTICAL HOUSING ABSORBED 59.9% OF
THE TOTAL SUBSIDIES DURING THE PERIOD, COMPARED TO 31.8% IN
1Q16.
GROSS PROFIT / MARGIN
GROSS PROFIT DECREASED 11.0% TO PS. 423.0 MILLION IN 1Q17 FROM PS.
475.4 MILLION IN 1Q16, PRIMARILYDUE TO THE DECLINE IN VOLUME AND
THE INCREASE IN THE COST OF RAW MATERIALS.
GROSS MARGIN DECLINED 2.0PERCENTAGE POINTS TO 25.4% IN 1Q17
COMPARED TO 27.4% IN 1Q16 IMPACTED BY THE SAME EFFECTS MENTIONED
ABOVE.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES INCREASED 5.2% TO PS.
294.2 MILLION IN 1Q17 FROM PS. 279.7 MILLIONIN 1Q16, AS A RESULT OF
A GREATER INVESTMENT IN THE ADVERTISING OF NEW PROJECTS AND THE
SET-UP OF NEW SALES OFFICES. EBITDA / MARGINEBITDA DECREASED 32.4%
TO PS.140.0 MILLION IN 1Q17 FROM PS. 207.0 MILLION IN 1Q16, MAINLY
FOR THE VOLUME EFFECT, THE INCREASE IN RAW MATERIAL COSTS AND
GREATER ADVERTISING EXPENSES FOR THE PROMOTION OF NEW
DEVELOPMENTS.
NET RESULTNET RESULT WAS PS. 155.5 MILLION IN 1Q17 COMPARED TO PS.
(164.1) MILLION IN 1Q16, PRIMARILY DUE TO FX GAINS OF PS. 247.8
MILLION GIVEN THE APPRECIATION OF THE MEXICAN PESO, WHILE THE NET
RESULT IN 1Q16 WAS AFFECTED BY THE PS. 376.8 MILLION IN COSTS
INCURRED FROM THE TENDER OFFER FOR THECOMPANY'S 2021 NOTES EXECUTED
DURING THE PERIOD AFTER THE COMPANY'S IPO. NET INCOME PER SHARE WAS
PS. O.56 AS OF MARCH 31, 2017, COMPARED TO THE NET LOSS PER SHARE
OF PS. (0.62) AS OF MARCH 31, 2016.
COMPREHENSIVE INCOME, WHICH INCLUDES DERIVATIVES (MTM) GAINSAND
LOSSES TO HEDGE THE COUPONS CORRESPONDING TO THE LONG-TERM DEBT
DENOMINATED IN US DOLLARS, WAS PS. 78.1MILLION IN 1Q17.ASSETS /
LIABILITIES
CASH AND CASH EQUIVALENTS WERE PS. 583.5 MILLION AS OF MARCH 31,
2017.
WORKING CAPITAL
AS OF MARCH 31, 2017, THE WORKING CAPITAL CYCLE WAS 273 DAYS, WHICH
DECREASED 10 DAYS, COMPARED TO THE WORKING CAPITAL CYCLE OF 283
DAYS AS OF DECEMBER 31, 2016, DUE TO THE COMPANY'S DISCIPLINE
REGARDING THE INVENTORY CONTROL AND IMPROVEMENTS IN THE COLLECTION
PROCESSES.
FREE CASH FLOW
FCFINCREASED 143.2% TO PS. 176.9 MILLION IN 1Q17 COMPARED TO PS.
72.7 MILLION IN 1Q16, DRIVEN BY AN EFFICIENT INVENTORY CONTROL,
IMPROVEMENTS IN COLLECTIONS AND LOWER FINANCIAL EXPENDITURES.
DEVELOPMENT PIPELINE
HOME STARTSDECREASED 41.7% TO 2,958 UNITS IN 1Q17, COMPARED TO
5,071 UNITS IN 1Q16, PRIMARILY DUE TO A SHIFT IN THE INVENTORY
STRATEGY TO DEVELOP HOMES WITH NO RELIANCE TO SUBSIDIES.
HOME COMPLETIONS DECLINED 19.6% TO 3,562 UNITS IN 1Q17 FROM 4,429
UNITS IN 1Q16, GIVEN THE DECREASE OF INVESTMENT IN INVENTORIES DUE
TO A MINOR AVAILABILITY OF SUBSIDIES.
FINISHED HOME INVENTORYDECREASED TO 1,374 UNITS AS OF MARCH 31,
2017, COMPARED TO 2,036 UNITS AS OF DECEMBER 31, 2016, AFFECTED
MAINLY BY THE DECREASE OF UNITS' PRODUCTION.DEBT AND DERIVATIVES
EXPOSURE
AS OF MARCH 31, 2017, JAVER CONTINUED TO POSSESS AVAILABLE CREDIT
FACILITY LINES IN EXCESS OF PS. 347.1 MILLION. THESE CREDIT LINES
COULD BE USED AT ANY TIME AS LONG AS JAVER IS IN COMPLIANCEWITH ITS
BOND INCURRENCE COVENANTS.
JAVER MAINTAINED DERIVATIVE POSITIONS TO HEDGE ITS CURRENCY
EXPOSURE RELATED TO THE 2021 NOTE COUPONS AND A PORTION OF THE
PRINCIPAL OF ITS 2021 NOTES. AS OF MARCH 31, 2017, THE WEIGHTED
HEDGE OF THE COUPONS WAS 1.75 YEARS. FOR THE PRINCIPAL, JAVER HAS
AN OPTION CALL WITH MATURITY IN APRIL 2017 AND A CROSS CURRENCY
SWAP THAT MATURES IN APRIL 2019. THE COMPANY WILL CONTINUE WITH A
PROGRAM TO HEDGE THE PRINCIPAL IN THE FOLLOWING QUARTERS.
AS OF MARCH 31, 2017, THE COMPANY POSSESSED US$ 23 MILLION IN
AVAILABLE CREDIT LINES FROM DERIVATIVE COUNTERPARTIES TO FINANCE
ANY POTENTIAL NEGATIVE CARRYING VALUES ON THE COMPANY'S DERIVATIVE
CONTRACTS.
AS OF MARCH 31, 2017, TOTAL DEBT / LTM EBITDA REACHED 3.08X; NET
DEBT TO EBITDA WAS 2.40X; EBITDA INTEREST COVERAGE REACHED
2.21X.
SERVICIOS CORPORATIVOS JAVER S.A.B. DE C.V.CORDIALLY INVITES YOU TO
ITS
FIRST QUARTER 2017CONFERENCE CALL & WEBCAST PRESENTATION IN
SPANISHTUESDAY, APRIL 25, 2017
11:00 A.M. NEW YORK TIME10:00 A.M. MEXICO CITY/MONTERREY
TIMEPRESENTERS:
RENE MARTINEZ MARTINEZ, CHIEF EXECUTIVE OFFICER
FELIPE LOERA, CHIEF FINANCIAL OFFICER
------
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PASSCODE: 2366TO ACCESS THE LIVE AND ARCHIVED WEBCAST PRESENTATION,
VISIT:
HTTPS://WWW.WEBCASTER4.COM/WEBCAST/PAGE/1110/20497
A REPLAY OF THIS CALL WILL BE AVAILABLE FOR 30 DAYS.
TO OBTAIN THE REPLAY,PLEASE CALL:
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PASSCODE: 60462767
ABOUT JAVER:SERVICIOS CORPORATIVOS JAVER S.A.B. DE C.V. SPECIALIZES
IN THE CONSTRUCTION OF LOW-INCOME, MIDDLE INCOME AND RESIDENTIAL
HOUSING AND IT IS THE LARGEST HOUSING DEVELOPMENT COMPANIES IN
MEXICO IN TERMS OF UNITS SOLD. THE COMPANY BEGAN OPERATIONS IN
1973, AND IT IS HEADQUARTERED IN THE CITY OF MONTERREY, NUEVO LEON.
THE COMPANY OPERATES IN THE STATES OF NUEVO LEON, AGUASCALIENTES,
TAMAULIPAS, JALISCO, QUERETARO, STATE OF MEXICO, QUINTANA ROO, AND
HAD OPERATIONS IN MEXICO CITY WITH A RESIDENTIAL PROJECT IN 2016.
JAVER IS THE LARGEST SUPPLIER OF THE INFONAVIT SYSTEM IN THE
COUNTRY, HOLDINGA 4.9% MARKET SHARE IN 2016; IN ADDITION, IT IS THE
LARGEST SUPPLIER OF INFONAVIT LOANS IN THE STATE OF NUEVO LEON,
JALISCO, QUERETARO AND AGUASCALIENTES WITHA 15.1%, 15.0%, 12.9% AND
12.7% MARKET SHARE IN 2016, RESPECTIVELY; THE SECOND LARGEST
SUPPLIER OF INFONAVIT LOANS IN THE STATE OF MEXICO WITH A 7.1%
MARKET SHARE, AND THE FIFTH LARGEST IN QUINTANA ROO WITH 4.8%
MARKET SHARE, WHERE THE COMPANY STARTED OPERATIONS IN 2014. DURING
2016, THE COMPANY REPORTED REVENUES OF PS. 7,052 MILLION AND SOLD A
TOTAL OF 18,352 UNITS.
DISCLAIMER:THIS PRESS RELEASE MAY INCLUDE FORWARD-LOOKING
STATEMENTS. THESE FORWARD-LOOKING STATEMENTS INCLUDE, WITHOUT
LIMITATION, THOSE REGARDING JAVER'S FUTURE FINANCIAL POSITION AND
RESULTS OF OPERATIONS, THE COMPANY'S STRATEGY, PLANS, OBJECTIVES,
GOALS AND TARGETS, FUTURE DEVELOPMENTS IN THE MARKETS IN WHICHJAVER
PARTICIPATES OR ARE SEEKING TO PARTICIPATE OR ANTICIPATED
REGULATORY CHANGES IN THE MARKETS IN WHICH JAVER OPERATES OR
INTENDS TO OPERATE.JAVER CAUTIONS POTENTIAL INVESTORS THAT
FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE
AND ARE BASED ON NUMEROUS ASSUMPTIONS AND THATJAVER'S ACTUAL
RESULTS OF OPERATIONS, INCLUDING THE COMPANY'S FINANCIAL CONDITION
AND LIQUIDITY AND THE DEVELOPMENT OF THE MEXICAN MORTGAGE FINANCE
INDUSTRY, MAY DIFFER MATERIALLY FROM THE FORWARD-LOOKING STATEMENTS
CONTAINED IN THIS PRESS RELEASE. IN ADDITION, EVEN IF JAVER'S
RESULTS OF OPERATIONS ARE CONSISTENT WITHTHE FORWARD-LOOKING
STATEMENTS CONTAINED IN THIS PRESS RELEASE, THOSE RESULTS OR
DEVELOPMENTS MAY NOT BE INDICATIVE OF RESULTS OR DEVELOPMENTS IN
SUBSEQUENT PERIODS.
IMPORTANT FACTORS THAT COULD CAUSE THESE DIFFERENCES INCLUDE, BUT
ARE NOT LIMITED TO: RISKSRELATED TO JAVER'S COMPETITIVE POSITION;
RISKS RELATED TO JAVER'S BUSINESS AND COMPANY'S STRATEGY, JAVER'S
EXPECTATIONS ABOUT GROWTH IN DEMAND FOR ITS PRODUCTSAND SERVICES
AND TO THE COMPANY'S BUSINESS OPERATIONS, FINANCIAL CONDITION AND
RESULTS OF OPERATIONS; ACCESS TO FUNDING SOURCES, AND THE COST OF
THE FUNDING; CHANGES IN REGULATORY, ADMINISTRATIVE, POLITICAL,
FISCAL OR ECONOMIC CONDITIONS, INCLUDING FLUCTUATIONS IN INTEREST
RATES AND GROWTH OR DIMINUTION OF THE MEXICANREAL ESTATE AND/OR
HOME MORTGAGE MARKET; INCREASES IN CUSTOMER DEFAULT RATES; RISKS
ASSOCIATED WITH MARKET DEMAND FOR AND LIQUIDITY OF THE NOTES;
FOREIGN CURRENCY EXCHANGE FLUCTUATIONS RELATIVE TO THE U.S. DOLLAR
AGAINST THE MEXICAN PESO; AND RISKS RELATED TO MEXICO'S SOCIAL,
POLITICAL OR ECONOMIC ENVIRONMENT.THIS DOCUMENT IS NOT AN OFFER OF
SECURITIES FOR SALE IN MEXICO OR IN THE UNITED STATES. SECURITIES
MAY NOT BE OFFEREDOR SOLD (I) IN MEXICO ABSENT AUTHORIZATION BY THE
CNBV IN ACCORDANCE WITH THE LEY DEL MERCADO DE VALORES (MEXICAN
SECURITIES MARKET LAW) AND ALL APPLICABLE REGULATIONS AND THE DUE
REGISTRATION OF THE SECURITIES IN THE NATIONAL REGISTRY OF
SECURITIES MAINTAINED BY THE CNBV; OR (II) IN THE UNITED STATES
ABSENT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR AN EXEMPTION FROM REGISTRATION THEREFROM. ANY PUBLIC OFFERING OF
SECURITIES IN MEXICO OR IN THE UNITED STATES MUST BE MADE BY MEANS
OF A PROSPECTUS CONTAINING DETAILED INFORMATION ABOUT THE TERMS OF
THE OFFERING, THE ISSUER AND MATTERS RELATING TO ITS FINANCIAL,
ADMINISTRATIVE, AND LEGAL CONDITION, AS WELL AS FINANCIAL
STATEMENTS.
WWW.JAVER.COM.MXSOURCE: SERVICIOS CORPORATIVOS JAVER, S.A.B. DE
C.V.
AV. JUREZ NO. 1102COLONIA CENTRO, 64000
MONTERREY, NUEVO LEN, MXICO