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SIM Grupo Simec S.A.B. de C.V.

Filed: 3 May 21, 4:33pm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

COMMISSION FILE NUMBER 1-11176

 

For the month ofDecember2020.

 

Grupo Simec, S.A.B.de C.V.

(Translation of Registrant’s Name Into English)

 

Av. Lázaro Cardenas 601, Colonia la Nogalera, Guadalajara, Jalisco, México 44440

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F [X] Form 40-F [_]

 

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1)

 

Yes  [_] No [X]

 

Indicate by check mark whether the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7)

 

Yes [_] No [X]

 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes [_] No  [X]

 

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-___________.)

 

 

 

SIGNATURE

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  GRUPO SIMEC, S.A.B. de C.V.
    (Registrant)
   
   
   
Date: May 03, 2021. 
By: 
/s/ Rufino Vigil González
 
  Name:  Rufino Vigil González
  Title:  Chief Executive Officer
   

 

 

 

PRESS RELEASEContact: José Luis Tinajero
  Mario Moreno Cortez
  Grupo Simec, S.A.B. de C.V.
  Calzada Lázaro Cárdenas 601
  44440 Guadalajara, Jalisco, México
  52 55 1165 1025
  52 33 3770 6734

 

GRUPO SIMEC ANNOUNCES RESULTS OF OPERATIONS FOR THE TWELVE-MONTH PERIOD ENDED DECEMBER 31, 2020 AUDITED

 

GUADALAJARA, MEXICO, May 03th, 2021- Grupo Simec, S.A.B. de C.V. (NYSE: SIM) (“Simec”) announced today its results of operations for the twelve-month period ended December 31, 2020 audited and December 31, 2019 audited.

 

Twelve-Month Period Ended December 31, 2020 audited compared to Twelve-Month Period Ended December 31, 2019 audited

 

Net Sales

Net sales increased 5% by the combination of higher shipments of finished steel products and a higher average sales price by 1% compared the same period of 2019, the sales increased from Ps. 34,171 million in the twelve-month period ended December 31, 2019 to Ps. 35,869 million in the same period of 2020. Shipments of finished steel products increased 4% to 2 million 441 thousand tons in the twelve-month period ended December 31, 2020 compared to 2 million 349 thousand tons in the same period of 2019. Total sales outside of Mexico on the twelve-month period ended December 31, 2020 increased 6% to Ps. 17,746 million compared with Ps. 16,736 million in the same period of 2019. Total sales in Mexico increased 4% from Ps. 17,435 million in the twelve-month period ended December 31, 2019 to Ps. 18,123 million in the same period of 2020. The increase of 5% in sales is due to a higher average sales price and higher volume of shipments.

 

Cost of Sales

Cost of sales decreased 3% from Ps. 30,067 million in the twelve-month period ended December 31, 2019 to Ps. 29,212 million in the same period of 2020. Cost of sales as a percentage of net sales represented, 81% for 2020 and 2019 88%. The average cost of finished steel produced in the twelve-month period ended December 31, 2020 compared to the same period of 2019 decreased 7% due to higher costs of some supplies at year end.

 

Gross Profit

Gross profit of the Company in the twelve-month period ended December 31, 2020 was of Ps. 6,658 million compared to Ps. 4,104 million in the same period of 2019. Gross profit as a percentage of net sales represented 19% and 12% for the 2020 and 2019 periods respectively.

 

 

Operating Expenses

Selling, general and administrative expenses increased 23% from Ps. 1,637 million in the twelve-month period ended December 31, 2019 to Ps. 2,019 million in the same period of 2020. Selling, general and

 

 

administrative expenses as a percentage of net sales represented 5% during the twelve-month period ended December 31, 2019 and 6% in the same period of 2020.

 

Other Expenses (Income) net

The company recorded other net expenses of Ps. 137 million in the twelve-month period ended December 31, 2019 compared to other net income of Ps. 547 million in the same period of 2020.

 

Operating Income

Operating income increased 123% from Ps. 2,330 million for the twelve-month period ended December 31, 2019 to Ps. 5,185 million in the same period of 2020. Operating income as a percentage of net sales represented 14% and 7% for the 2020 and 2019 periods respectively.

 

 

EBITDA

The EBITDA of the Company increased 93% from Ps. 3,439 million in the twelve-month prior ended December 31, of 2019, generating a net loss of Ps. 1,636, less minority stake of Ps. 3, plus income taxes of Ps. 3,276, plus comprehensive financial cost of Ps. 694, plus depreciation of Ps. 1,108 to Ps. 6,637 million in the same period of 2020 as a result a net income of Ps. 2,957, plus income taxes of Ps. 1,919, plus comprehensive financial cost of Ps. 309, plus depreciation of 1,452.

 

Consolidated   
Million   Twelve-month period ended December 31,
  2020  2019
Net income (loss) attributable to Vale's stockholders  2,957   (1,636)
Loss attributable to noncontrolling interests  0   (4)
Net income (loss)  4,178   (1,640)
Depreciation, depletion and amortization  1,452   1,109
Income taxes  1,919   3,276
Financial results income (loss)  309   694
EBITDA  6,729   3,439
        
Items to reconciled adjusted EBITDA       
Equity results and other results in associates and joint ventures  0   0
Dividends received and interest from associates and joint ventures (i)  0   0
Impairment and disposal of non-current assets  0   0
Adjusted EBITDA  6,637   3,439

 

 

 

 

Comprehensive Financial Cost

Comprehensive financial cost in the twelve-month period ended December 31, 2020 represented a net expense of Ps. 309 million compared with a net expense of Ps. 694 million in the same period of 2019. The net interest was an income of Ps. 54 million in 2020 compared with a net income of Ps. 91 million in the twelve-month period ended December 31, 2019. As a result, we registered a net exchange loss of Ps. 363 million in the twelve-month period ended December 31, 2020 compared with a net exchange loss of Ps. 785 million in the same period of 2019, reflecting a 5.63% increase in the value of the peso versus the dollar in the twelve-month period ended December 31, 2020 compared to December 31, 2019.

 

Income Taxes

The Company have recorded an expense net tax of Ps. 1,919 million in the twelve-month period ended December 31, 2020 (including the income of deferred tax of Ps. 81 million) compared with a net expense tax of Ps. 3,276 million in the same period of 2019 (including the tax deferred expense of Ps. 202 million).

 

Net Income (loss) (After Minority Interest)

As a result of the foregoing, net income increased by 281% from Ps. 1,636 million net loss in the twelve-month period ended December 31, 2019 to Ps. 2,957 million a result net income in the same period of 2020.

 

Liquidity and Capital Resources

As of December 31, 2020, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, Ps. 6.0 million (accrued interest on December 31, 2020 was U.S. $640,393 or Ps. 12.8 million). As of December 31, 2019, Simec’s total consolidated debt consisted of U.S. $302,000 of 8 7/8% medium-term notes (“MTN's”) due 1998, Ps. 5.7 million (accrued interest on December 31, 2019 was U.S. $676,758, or Ps. 12.8 million).

 

 

 

 

Comparative fourth quarter 2020 vs third quarter 2020

 

Net Sales

Net sales increased from Ps. 9,643 million in the third quarter of 2020 to Ps. 10,130 million for the fourth quarter of 2020. Sales in tons decreased from 676 thousand ton in the third quarter of 2020 to 602 thousand ton in the fourth quarter of the same period, a decrease of 11%. Total sales outside of Mexico for the fourth quarter of 2020 decreased 1% from Ps. 4,824 million in the third quarter to Ps. 4,753 million in the four quarter of 2020. Sales in Mexico increased to Ps. 5,377 million in the fourth quarter of 2020 compared Ps. 4,819 million in the third quarter of 2020 and increase of 12%. Prices of finished products sold in the fourth quarter of 2020 increased 18% compared with the third quarter of the same period.

 

 

 

 

Cost of Sales

Cost of sales increased to Ps. 8,356 million in the fourth quarter of 2020 compared to Ps. 7,682 million for the third quarter of 2020. With respect to sales, in the fourth quarter of 2020, the cost of sales represented 82% in the fourth quarter of 2020, compared to 80% in the third quarter of the same period. The average cost of sales by ton increased 22% in the fourth quarter of 2020 versus the third quarter of 2020.

 

 

Gross Profit

Gross profit of the Company for the fourth quarter of 2020 decreased 10% to Ps. 1,774 million compared to Ps. 1,961 million in the third quarter of 2020. The gross profit as a percentage of net sales for the third and fourth quarter of 2020 was of 20% and 18% respectively.

 

 

Operating Expenses

Selling, general and administrative expenses increased 57% to Ps. 703 million in the fourth quarter of 2020 compared to Ps. 449 million for the third quarter of 2020. Selling, general and administrative expenses as a percentage of net sales for the third and fourth quarter of 2020 was of 7% and 5% respectively.

 

 

Other Expenses (Income) net

The company recorded other net income of Ps. 331 million in the fourth quarter of 2020 compared to other net income of Ps. 56 million for the third quarter of 2020.

 

 

 

Operating (Loss) Income

Operating income was of Ps. 1,401 million in the fourth quarter of 2020 compared to an operating income of Ps. 1,568 million in the third quarter of 2020. The operating income as a percentage of net sales represented 14% and 16% for the third quarter and fourth quarter periods respectively.

 

EBITDA

The EBITDA was Ps. 1,891 million in the third quarter of 2020 as a result a net income of Ps. 1,003, less minority stake of Ps. 1 million, plus income taxes of Ps. 352, plus comprehensive financial cost of Ps. 214, plus depreciation of Ps. 323 compared to Ps. 1,895 million for the fourth quarter of 2020, as a result a net loss of Ps. 498, less minority stake of Ps. 4 million, plus income taxes of Ps. 615, plus comprehensive financial cost of Ps. 1,288, plus depreciation of Ps. 494.

 

Consolidated   
Million   Comparative fourth quarter vs third quarter 2020
  4Q 2020  3Q 2020
Net income (loss) attributable to Vale's stockholders  (498  1,003
Loss attributable to noncontrolling interests  (4)  (1)
Net income (loss)  (502)   1,002
Depreciation, depletion and amortization  494   323
Income taxes  615   352
Financial results income (loss)  1,288   214
EBITDA  1,987   1,891
        
Items to reconciled adjusted EBITDA       
Equity results and other results in associates and joint ventures  0   0
Dividends received and interest from associates and joint ventures (i)  0   0
Impairment and disposal of non-current assets  0   0
Adjusted EBITDA  1,895   1,891

 

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter for 2020 was a net expense of Ps. 1,288 million compared with a net expense of Ps. 214 million for the third quarter of 2020. The net interest income the fourth quarter was Ps. 15 million compared with a net expense of Ps. 6 million in the third quarter of 2020. At same time we registered an exchange net loss of Ps. 208 million in the third quarter of 2020 compared with an exchange net loss of Ps. 1,303 million in the fourth quarter of 2020.

 

 

 

Income Taxes

Income Taxes for the third quarter of 2020 had an expense net tax of Ps. 352 million (including an expenses tax deferred for Ps. 18 million) compared to an expense of Ps. 615 million for the fourth quarter of 2020, (including an income tax deferred of Ps. 66 million).

 

Net Income (loss)

As a result of the foregoing, the Company recorded a net loss of Ps. 498 million in the fourth quarter of 2020 compared to Ps. 1,003 million of net income in the third quarter of 2020.

 

 

Comparative fourth quarter 2020 vs fourth quarter 2019

 

Net Sales

Net sales increased 38% from Ps. 7,315 million for the fourth quarter of 2019 to Ps. 10,130 million for the fourth quarter of 2020. Sales in tons of finished steel in the fourth quarter of 2019 were 570 thousand tons versus to 602 thousand tons in the fourth quarter of 2020. Total sales outside of Mexico increased 36% from Ps. 3,497 million for the fourth quarter of 2019 to Ps. 4,753 million in the fourth quarter of 2020. Sales in Mexico increased 41% from Ps. 3,818 million in the fourth quarter of 2019 to Ps. 5,377 million in the fourth quarter of 2020. The average sales prices of finished products sold in the fourth quarter of 2020 increased 31%, compared to the same period of 2019.

 

Cost of Sales

Cost of sales increased 22% from Ps. 6,835 million in the fourth quarter of 2019 compared to Ps. 8,356 million for the fourth quarter of 2020. With respect to sales, the cost of sales represented 82% during the fourth quarter of 2020 and 93% during the fourth quarter of 2019. The average cost of steel products increased 16% in the fourth quarter of 2020 versus the fourth quarter of 2019.

 

Gross Profit

Gross profit for the fourth quarter of 2020 increased 270% from Ps. 480 million in the fourth quarter of 2019 compared to Ps. 1,774 million in the fourth quarter of 2020. The gross profit as a percentage of net sales represented 7% for the fourth quarter of 2019 compared to 18% of the fourth quarter of 2020.

 

Operating Expenses

Selling, general and administrative expenses increased 33% from Ps. 530 million in the fourth quarter of 2019 compared to Ps. 703 million for the fourth quarter of 2020. Selling, general and administrative expenses as a percentage of net sales represented 7% for the fourth quarter of 2019 and 7% for the fourth quarter of 2020.

 

Other Expenses (Income) net

The company recorded other expenses net of Ps. 298 million in the fourth quarter of 2019 compared with other income net of Ps. 331 million for the fourth quarter of 2020.

 

Operating (Loss) Income

Operating income was of Ps. 1,401 million in the fourth quarter of 2020 compared to an operating loss of Ps. 348 million in the fourth quarter of 2019. The operating income as a percentage of net sales in the fourth quarter of 2020 was 14%, compared to an operating loss of -5% in the fourth quarter of 2019.

 

 

EBITDA

The EBITDA was Ps. -42 million in the fourth quarter of 2019 as a result a net loss of Ps. 3,229, plus minority stake of Ps. 124, plus income taxes of Ps. 2,970, less comprehensive financial cost of Ps. 213, plus depreciation of Ps. 306 compared to a profit of Ps 1,895 million in the fourth quarter of 2020 as a result a net loss of Ps. 498, less minority stake of Ps. 4 million, plus income taxes of Ps. 615, plus comprehensive financial cost of Ps. 1,288, plus depreciation of Ps. 494.

 

Consolidated   
Million Comparative fourth quarter vs fourth quarter
  2020  2019
Net income (loss) attributable to Vale's stockholders  (498)   (3,229)
Loss attributable to noncontrolling interests  (4)   124
Net income (loss)  (502)   (3,105)
Depreciation, depletion and amortization  494   306
Income taxes  615   2,970
Financial results income (loss)  1.288   (213)
EBITDA  1,987   (42)
        
Items to reconciled adjusted EBITDA       
Equity results and other results in associates and joint ventures  0   0
Dividends received and interest from associates and joint ventures (i)  0   0
Impairment and disposal of non-current assets  0   0
Adjusted EBITDA  1,895   (42)

 

Comprehensive Financial Income (Cost)

Comprehensive financial cost for the fourth quarter of 2020 was a net expense of Ps. 1,288 million compared with a net income of Ps 213 million in the fourth quarter of 2019. Net interest income was of Ps. 15 million in the fourth quarter of 2020 compared with a net interest expense of Ps. 40 million in the fourth quarter of 2019. At same time we registered a net exchange loss of Ps. 1,303 million in the fourth quarter of 2020 compared with an exchange income of Ps. 253 million in the fourth quarter of 2019.

 

Income Taxes

The Company recorded an expense net taxes for the fourth quarter of 2020 of Ps. 615 million (including an expense of deferred tax of Ps. 66 million), compared to an expense taxes of Ps. 2,970 million for the fourth quarter of 2019, (including an income tax deferred of Ps. 128 million).

 

 

 

Net Income (loss)

As a result of the foregoing, the Company recorded a net loss of Ps. 498 million in the fourth quarter of 2020 compared to Ps. 3,229 million of net loss in the fourth quarter of 2019.

 

 

 

 

 

 

 

(million of pesos)Jan - Dec ‘20 Jan - Dec ‘19 Year 20 vs
 '19
Sales35,869 34,171 5%
Cost of Sales29,212 30,067 (3%)
Gross Profit6,658 4,104 62%
Selling, General and Administrative Expense2,019 1,637 23%
Other Income (Expenses), net547 (137) 500%
Operating Profit5,185 2,330 123%
EBITDA6,637 3,439 93%
Net income 2,957 (1,636) 281%
Sales Outside Mexico17,746 16,736 6%
Sales in Mexico18,123 17,435 4%
Total Sales (Tons)2,441 2,349 4%
Cost by ton11,967 12,800 (7%)

 

 

 

 

 

Quarter     
(million of pesos)4Q‘203Q ‘204Q ‘194Q´20vs
3Q´20
4Q´20 vs
4Q '19
Sales10,1309,6437,3155%38%
Cost of Sales8,3567,6826,8359%22%
Gross Profit1,7741,961480(10%)270%
Selling, General and Adm. Expenses70344953057%33%
Other Income (Expenses), net33156(298)491%211%
Operating Profit1,4011.568(348)(11%)503%
EBITDA1,8951,891(42)0%4613%
Net Income(498)1,003(3,229)(150%)(85%)
Sales Outside Mexico4,7534,8243,497(1%)36%
Sales in Mexico5,3774,8193,81812%41%
Total Sales (Tons)602676570(11%)6%
Cost per Ton13,88111,36411,99122%16%

 

 

 

 

Product

Thousands of Tons

Jan-Dec 2020

Millions of Pesos

Jan-Dec 2020

Average Price per Ton

Jan-Dec

2020

Thousands of Tons

Jan – Dec
2019

Millions of Pesos

Jan- Dec 2019

Average Price per Ton

Jan-Dec

2019

Special Profiles79113,59317,18585115,38418,078
Commercial Profiles1,65022,27613,5011,49818,78712,541
Total Tons2,44135,86914,6942,34934,17114,547

 

 

 

 

 

Product

Thousands of Tons

Oct-Dec 2020

Millions of Pesos

Oct-Dec 2020

Average Price per Ton

Oct-Dec

2020

Thousands of Tons

Jul-Sep

2020

Millions of Pesos

Jul-Sep

2020

Average Price per Ton

Jul-Sep

2020

Thousands of Tons

Oct-Dec

2019

Millions of Pesos Oct-Dec 2019

Average Price per Ton

Oct-Dec

2019

Special Profiles2203,89817,7182153,55116,5161913,04215,927
Commercial Profiles3826,23216,3144616,09213,2153794,27311,274
Total Tons60210,13016,8276769,64314,2655707,31512,833

 

 

Any forward-looking information contained herein is inherently subject to various risks, uncertainties and assumptions which, if incorrect, may cause actual results to vary materially from those anticipated, expected or estimated. The company assumes no obligation to update any forward-looking information contained herein.

 

 

 

 

 

   
CLAVE DE COTIZACION: SIMEC  QUARTER: 4
GRUPO SIMEC, S.A.B. DE C.V   2020
   
   
(THOUSAND PESOS)  
 ENDING CURRENT QUARTERENDING PREVIOUS YEAR
ACCOUNTAmountAmount
TOTAL ASSETS47,584,71846,052,532
TOTAL CURRENT ASSETS28,101,08326,019,447
CASH AND CASH EQUIVALENTS7,727,6987,446,447
SHORT-TERM INVESTMENTS00
  AVAILABLE-FOR-SALE INVESTMENTS00
  TRADING INVESTMENTS00
  HELD-TO-MATURITY INVESTMENTS00
TRADE RECEIVABLES, NET5,072,8694,186,239
  TRADE RECEIVABLES 5,306,2244,423,337
  ALLOWANCE FOR DOUBTFUL ACCOUNTS-233,355-237,098
OTHER RECEIVABLES, NET5,372,5645,345,148
  OTHER RECEIVABLES 5,372,5645,345,148
  ALLOWANCE FOR DOUBTFUL ACCOUNTS00
INVENTORIES9,073,5998,243,213
BIOLOGICAL CURRENT ASSETS00
OTHER CURRENT ASSETS854,353798,400
  PREPAYMENTS00
  DERIVATIVE FINANCIAL INSTRUMENTS00
  ASSETS AVAILABLE FOR SALE00
  DISCONTINUED OPERATIONS00
  RIGHTS AND LICENSES00
  OTHER854,353798,400
TOTAL NON-CURRENT ASSETS19,483,63520,033,085
ACCOUNTS RECEIVABLE, NET00
INVESTMENTS00
  INVESTMENTS IN ASSOCIATES AND JOINT VENTURES00
  HELD-TO-MATURITY INVESTMENTS 00
  AVAILABLE-FOR-SALE INVESTMENTS00
  OTHER INVESTMENTS00
PROPERTY, PLANT AND EQUIPMENT, NET15,950,35216,737,595
  LAND AND BUILDINGS6,756,0556,429,644
  MACHINERY AND INDUSTRIAL EQUIPMENT29,636,66028,925,984
  OTHER EQUIPMENT304,505301,642
  ACCUMULATED DEPRECIATION-21,762,280-20,290,232
  CONSTRUCTION IN PROGRESS41,015,4121,370,557
INVESTMENT PROPERTY00
BIOLOGICAL NON- CURRENT ASSETS00
INTANGIBLE ASSETS, NET2,322,9562,335,117
  GOODWILL1,814,1601,814,160
  TRADEMARKS329,600329,600
  RIGHTS AND LICENSES00
  CONCESSIONS00
  OTHER INTANGIBLE ASSETS179,196191,357
DEFERRED TAX ASSETS00
OTHER NON-CURRENT ASSETS1,210,327960,373
  PREPAYMENTS00
  DERIVATIVE FINANCIAL INSTRUMENTS00
  EMPLOYEE BENEFITS00
  AVAILABLE FOR SALE ASSETS 00
  DISCONTINUED OPERATIONS00
  DEFERRED CHARGES00
  OTHER1,210,327960,373
TOTAL LIABILITIES14,403,59913,442,755
TOTAL CURRENT LIABILITIES10,514,3009,324,250
BANK LOANS00
STOCK MARKET LOANS6,0205,700

 

 

 

OTHER LIABILITIES WITH COST00
TRADE PAYABLES5,347,3254,179,830
TAXES PAYABLE3,542,9323,349,980
  INCOME TAX PAYABLE00
  OTHER TAXES PAYABLE3,542,9323,349,980
OTHER CURRENT LIABILITIES 664,7611,105,718
  INTEREST PAYABLE12,76612,772
  DERIVATIVE FINANCIAL INSTRUMENTS00
  DEFERRED REVENUE 00
  EMPLOYEE BENEFITS00
  PROVISIONS00
  CURRENT LIABILITIES RELATED TO AVAILABLE FOR SALE ASSETS00
  DISCONTINUED OPERATIONS00
  OTHER940,496670,250
TOTAL NON-CURRENT LIABILITIES3,889,2994,118,505
BANK LOANS00
STOCK MARKET LOANS00
OTHER LIABILITIES WITH COST00
DEFERRED TAX LIABILITIES3,469,5983,410,106
OTHER NON-CURRENT LIABILITIES257,837585,031
  DERIVATIVE FINANCIAL INSTRUMENTS00
  DEFERRED REVENUE 00
  EMPLOYEE BENEFITS161,864123,368
  PROVISIONS00
  NON-CURRENT LIABILITIES RELATED TO AVAILABLE FOR SALE ASSETS 00
  DISCONTINUED OPERATIONS00
  OTHER00
TOTAL EQUITY33,181,11932,609,777
EQUITY ATTRIBUTABLE TO OWNERS OF PARENT33,145,10932,584,977
CAPITAL STOCK2,832,2682,832,268
SHARES REPURCHASED-2,101,652-2,059,668
PREMIUM ON ISSUANCE OF SHARES4,575,2334,575,233
CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES00
OTHER CONTRIBUTED CAPITAL 00
RETAINED EARNINGS (ACCUMULATED LOSSES)28,884,63927,237,144
  LEGAL RESERVE00
  OTHER RESERVES5,000,0005,000,000
  RETAINED EARNINGS 17,996,88121,622,790
  NET INCOME FOR THE PERIOD2,957,393(1,635,909)
  OTHER00
ACCUMULATED OTHER COMPREHENSIVE INCOME (NET OF TAX)1,884,9862,250,263
  GAIN ON  REVALUATION OF PROPERTIES00
  ACTUARIAL GAINS  (LOSSES) FROM LABOR OBLIGATIONS00
  FOREING CURRENCY TRANSLATION1,884,9862,250,263
  CHANGES IN THE VALUATION OF FINANCIAL ASSETS AVAILABLE FOR SALE00
  CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS00
  CHANGES IN FAIR VALUE OF OTHER ASSETS00
  SHARE OF OTHER COMPREHENSIVE INCOME  OF ASSOCIATES AND JOINT VENTURES00
  OTHER COMPREHENSIVE INCOME00
NON-CONTROLLING INTERESTS36,01024,800

 

 

 

  

 

 

 

 

Informational data (not a part of the STATEMENTS OF FINANCIAL POSITION)ENDING CURRENT QUARTERENDING PREVIOUS YEAR 
AmountAmount 
 
SHORT-TERM FOREIGN CURRENCY LIABILITIES3,962,9313,962,931 
LONG-TERM FOREIGN CURRENCY LIABILITIES488,242488,242 
CAPITAL STOCK (NOMINAL)2,420,2302,420,230 
RESTATEMENT OF CAPITAL STOCK412,038412,038 
PLAN ASSETS FOR PENSIONS AND SENIORITY PREMIUMS00 
NUMBER OF EXECUTIVES (+)5655 
NUMBER OF EMPLOYEES (+)1,7631,571 
NUMBER OF WORKERS (+)2,9022,575 
OUTSTANDING SHARES (+)497,709,214497,709,214 
REPURCHASED SHARES (+)34,465,80333,729,926 
RESTRICTED CASH (1)00 
GUARANTEED DEBT OF ASSOCIATED COMPANIES00 
  
(1) This concept must be filled when there are guarantees or restrictions that affect cash and cash equivalents 
(*) Data in units   

 

 

 

 

BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMEC QUARTER: 4YEAR 2020 
STATEMENTS OF COMPREHENSIVE INCOME
GRUPO SIMEC, S.A.B. DE C.V  CONSOLIDADO 
     
(THOUSAND PESOS)    
ACCOUNTCURRENT YEARPREVIOUS YEAR
ACCUMULATEDQUARTERACCUMULATEDQUARTER
     
REVENUE35,869,31410,130,49934,171,2017,314,845
  SERVICES0000
  SALE OF GOODS35,869,31410,130,49934,171,2017,314,845
  INTERESTS0000
  ROYALTIES0000
  DIVIDENDS0000
  LEASES0000
  CONSTRUCTIONS0000
  OTHER REVENUE0000
COST OF SALES29,211,7248,356,46730,067,1416,834,547
GROSS PROFIT6,657,5901,774,0324,104,060480,298
GENERAL EXPENSES2,019,328703,4831,637,425529,938
PROFIT (LOSS) BEFORE OTHER INCOME (EXPENSE), NET4,638,2621,070,5492,466,635(49,640)
OTHER INCOME (EXPENSE), NET546,749330,913(136,582)(297,896)
OPERATING PROFIT (LOSS) (*)5,185,0111,401,4622,330,053(347,536)
  FINANCE INCOME107,82639,037145,995(26,698)
  INTEREST INCOME107,82639,037145,995(26,698)
  GAIN ON FOREIGN EXCHANGE, NET0000
  GAIN ON DERIVATIVES, NET0000
  GAIN ON CHANGE IN FAIR VALUE OF FINANCIAL INSTRUMENTS0000
  OTHER FINANCE INCOME0000
  FINANCE COSTS416,9101,327,157839,632(239,685)
  INTEREST EXPENSE53,74623,88055,04913,604
  LOSS ON FOREIGN EXCHANGE, NET363,1641,303,277784,583(253,289)
  LOSS ON DERIVATIVES, NET0000
  LOSS ON CHANGE IN FAIR VALUE OF FINANCIAL INSTRUMENTS0000
  OTHER FINANCE COSTS0000
FINANCE INCOME (COSTS), NET(309,084)(1,288,120)(693,637)(266,383)
SHARE OF PROFIT (LOSS) OF ASSOCIATES AND JOINT VENTURES0000
PROFIT (LOSS) BEFORE INCOME TAX4,875,927113,3421,636,416(134,549)
INCOME TAX EXPENSE1,918,639615,2893,276,2742,970,409
  CURRENT TAX1,837,250548,9713,478,7693,098,568
  DEFERRED TAX81,38966,318(202,495)(128,159)
PROFIT (LOSS) FROM CONTINUING OPERATIONS2,957,288(501,947)(1,639,858)(3,104,958)
PROFIT (LOSS) FROM DISCONTINUED OPERATIONS0000
NET PROFIT (LOSS)2,957,288(501,947)(1,639,858)(3,104,958)
  PROFIT (LOSS) ATTRIBUTABLE TO NON-CONTROLLING INTERESTS(105)(3,682)(3,949)124,105
  PROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT

 

2,957,393

(498,265)

 

(1,635,909)

(3,229,063)
     
BASIC EARNINGS (LOSS) PER SHARE6.38(1.07)(3.52)(6.94)
DILUTED EARNINGS (LOSS) PER SHARE0000

 

 

 

     
 
OTHER COMPREHENSIVE INCOME
(NET OF INCOME TAX)    
     
NET PROFIT (LOSS)2,957,288(501,947)(1,639,858)(3,104,958)
DISCLOSURES NOT BE RECLASSIFIED ON INCOME    
PROPERTY REVALUATION GAINS0000
  ACTUARIAL EARNINGS (LOSS) FROM LABOR OBLIGATIONS0000
SHARE OF INCOME ON REVALUATION ON PROPERTIES OF ASSOCIATES AND JOINT VENTURES0000
DISCLOSURES MAY BE RECLASSIFIED SUBSEQUENTLY TO INCOME    
  FOREING CURRENCY TRANSLATION (353,962) (933,601) (1,103,310) (586,385)
  CHANGES IN THE VALUATION OF FINANCIAL ASSETS HELD-FOR-SALE0000
  CHANGES IN THE VALUATION OF DERIVATIVE FINANCIAL INSTRUMENTS    
  CHANGES IN FAIR VALUE OF OTHER ASSETS0000
SHARE OF OTHER COMPREHENSIVE INCOME  OF ASSOCIATES AND JOINT VENTURES0000
  OTHER COMPREHENSIVE INCOME0000
TOTAL OTHER COMPREHENSIVE INCOME(353,962)(933,601)(1,103,310)(586,385)
     
     
TOTAL COMPREHENSIVE INCOME 2,603,326(1,435,548)(2,743,168)(3,691,343)
  COMPREHENSIVE INCOME, ATTRIBUTABLE TO NON-CONTROLLING INTERESTS11,2108,698348,169467,188)
  COMPREHENSIVE INCOME, ATTRIBUTABLE TO OWNERS OF PARENT2,592,116(1,444,246)(3,091,337)(4,158,531)
     
     
     
Informational data (not part of the statement)CURRENT YEARPREVIOUS YEAR
ACCUMULATEDQUARTERACCUMULATEDQUARTER
OPERATING DEPRECIATION AND AMORTIZATION1,452,271494,0531,108,629305,731
EMPLOYEE PROFIT SHARING EXPENSE0000
     
     
Informative data (12 Months)YEAR  
CURRENTPREVIOUS  
REVENUE NET (**)35,869,31434,171,201  
OPERATING PROFIT (LOSS) (**)5,185,0112,330,053  
PROFIT (LOSS) ATTRIBUTABLE TO OWNERS OF PARENT(**)2,957,393(1,635,909)  
NET PROFIT (LOSS) (**)2,957,288(1,639,858)  
OPERATING DEPRECIATION AND AMORTIZATION (**)1,452,2711,108,629  
     
(*) TO BE DEFINED BY EACH COMPANY    
(**) INFORMATION FOR THE LAST 12 MONTHS    
     

 

 

 

   
BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMECYEAR 2020

QUARTER: 4

 

GRUPO SIMEC, S.A.B. DE C.V
STATEMENTS OF CASH FLOWS
  CONSOLIDADO
(THOUSAND PESOS)  
CONCEPTSCURRENT YEARPREVIOUS YEAR
AmountAmount
OPERATING ACTIVITIES  
PROFIT (LOSS) BEFORE INCOME TAX4,875,9271,636,416
+(-) ITEMS NOT REQUIRING CASH00
+ ESTIMATE FOR THE PERIOD00
+ PROVISION FOR THE PERIOD12,07246,918
+(-) OTHER UNREALISED ITEMS018,030
+(-) ITEMS RELATED TO INVESTING ACTIVITIES1,344,445962,634
DEPRECIATION AND AMORTISATION FOR THE PERIOD1,452,2711,108,629
(-)+ GAIN OR LOSS ON SALE OF PROPERTY, PLANT AND EQUIPMENT00
+(-) LOSS (REVERSAL) IMPAIRMENT00
(-)+ EQUITY IN RESULTS OF ASSOCIATES AND JOINT VENTURES00
(-) DIVIDENDS RECEIVED00
(-) INTEREST RECEIVED(107,826)(145,995)
(-) EXCHANGE FLUCTUATION00
(-)+ OTHER INFLOWS (OUTFLOWS) OF CASH00
+(-) ITEMS RELATED TO FINANCING ACTIVITIES53,74655,049
(+) ACCRUED INTEREST53,74655,049
(+) EXCHANGE FLUCTUATION00
(+) DERIVATIVE TRANSACTIONS00
(-)+ OTHER INFLOWS (OUTFLOWS) OF CASH00
CASH FLOWS BEFORE INCOME TAX6,286,1902,719,047
CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES(2,652,315)(1,676,294)
+(-) DECREASE (INCREASE) IN TRADE ACCOUNTS RECEIVABLE(795,682)515,726
+(-) DECREASE (INCREASE) IN INVENTORIES(777,419)1,812,770
+(-) DECREASE (INCREASE) IN OTHER ACCOUNTS RECEIVABLE(1,628,326)(4,243,829)
+(-) INCREASE (DECREASE) IN TRADE ACCOUNTS PAYABLE1,066,393(151,986)
+(-) INCREASE (DECREASE) IN OTHER LIABILITIES(517,281)391,025
+(-) INCOME TAXES PAID OR RETURNED00
NET CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES3,633,8751,042,753
INVESTING ACTIVITIES  
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES(832,671)(106,686)
(-) PERMANENT INVESTMENTS00
+ DISPOSITION OF PERMANENT INVESTMENTS00
(-) INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT(951,205)(1,271,420)
+ SALE OF PROPERTY, PLANT AND EQUIPMENT00
(-) TEMPORARY INVESTMENTS00
+ DISPOSITION OF TEMPORARY INVESTMENTS00
(-) INVESTMENT IN INTANGIBLE ASSETS00
+ DISPOSITION OF INTANGIBLE ASSETS00
(-) ACQUISITIONS OF VENTURES01,071,032
+ DISPOSITIONS OF VENTURES00
+ DIVIDEND RECEIVED00
+ INTEREST RECEIVED107,826145,995
+(-) DECREASE (INCREASE) ADVANCES AND LOANS TO THIRD PARTS00
(-)+ OTHER INFLOWS (OUTFLOWS) OF CASH10,708(52,293)
FINANCING ACTIVITIES  
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES(2,085,730)(211,107)
+ BANK FINANCING00
+ STOCK MARKET FINANCING00
+ OTHER FINANCING00
(-) BANK FINANCING AMORTISATION00
(-) STOCK MARKET FINANCING AMORTISATION00

 

 

 

(-) OTHER FINANCING AMORTISATION00
+(-) INCREASE (DECREASE) IN CAPITAL STOCK00
(-) DIVIDENDS PAID1,990,0000
+ PREMIUM ON ISSUANCE OF SHARES00
+ CONTRIBUTIONS FOR FUTURE CAPITAL INCREASES00
(-) INTEREST EXPENSE53,74655,049
(-) REPURCHASE OF SHARES41,984156,058
(-)+ OTHER INFLOWS (OUTFLOWS) OF CASH00
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS715,474724,960
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS(434,223)(265,754)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD7,446,4476,987,241
CASH AND CASH EQUIVALENTS AT END OF PERIOD7,727,6987,446,447
   

 

   QUARTER: 4YEAR 2020
     
BOLSA MEXICANA DE VALORES, S.A.B. DE C.V.
STATEMENTS OF CHANGES IN EQUITY 
CLAVE DE COTIZACION: SIMEC    
     
GRUPO SIMEC, S.A.B. DE C.V    
    (THOUSAND PESOS)
CONCEPTSCAPITAL STOCKSHARES REPURCHASEDPREMIUM ON ISSUANCE OF SHARESCONTRIBUTIONS FOR FUTURE CAPITAL INCREASES
     
     
BALANCE AT 1 JANUARY 20192,832,268 1,903,610 4,575,233  
     
RETROSPECTIVE ADJUSTMENTS    
     
APPLICATION OF COMPREHENSIVE INCOME  TO RETAINED EARNINGS    
     
 RESERVES    
     
 DIVIDENDS    
     
CAPITAL INCREASE (DECREASE)     
     
REPURCHASE OF SHARES 156,058   
     
(DECREASE) INCREASE IN PREMIUM ON ISSUE OF SHARES    
     
(DECREASE) INCREASE IN NON-CONTROLLING INTERESTS    
     
OTHER CHANGES   
     
COMPREHENSIVE INCOME     
     

BALANCE AT _31 DECEMBER

2019_________

2,832,268 2,059,668 4,575,233 
     
     
BALANCE AT 1 JANUARY 20192,832,268 2,059,668 4,575,233 
     
RETROSPECTIVE ADJUSTMENTS    
     
APPLICATION OF COMPREHENSIVE INCOME TO RETAINED EARNINGS    
     
 RESERVES    

 

 

 

 

 

    
DIVIDENDS    
     
CAPITAL INCREASE (DECREASE)     
     
REPURCHASE OF SHARES    41,984  
     
(DECREASE) INCREASE IN PREMIUM ON ISSUE OF SHARES    
     
(DECREASE) INCREASE IN NON-CONTROLLING INTERESTS    
     
OTHER CHANGES   0 
     
COMPREHENSIVE INCOME     
     
BALANCE AT 31 DECEMBER 20202,832,2682,101,6524,575,2330
     

 

   QUARTER: 4YEAR 2020
BOLSA MEXICANA DE VALORES, S.A.B. DE C.V.
STATEMENTS OF CHANGES IN EQUITY 
CLAVE DE COTIZACION: SIMEC    
     
GRUPO SIMEC, S.A.B. DE C.V    
    (THOUSAND PESOS)

 

OTHER  CONTRIBUTED CAPITALRETAINED EARNINGS (ACCUMULATED LOSSES)ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)EQUITY ATTRIBUTABLE TO OWNERS OF PARENTNON-CONTROLLING INTERESTSTOTAL EQUITY
RESERVESUNAPPROPRIATED EARNINGS
(ACCUMULATED LOSSES)
       
 5,000,00021,622,790,3,705,69135,832,372(323,369)35,509,003
       
       
       
       
       
       
       
       
       
       
       
     (156,058)   (156,058)
       
       
       
       
       
    (1,455,428) (1,455,428) 352,118 (1,103,310)
       
   (1,635,909)  (1,635,909 (3,949) (1,639,858)
       
05,000,00019,986,8812,250,26336,442,857(442,388)32,609,777
       
       
05,000,00019,986,8812,250,26332,584,97724,80032,609,777
       
       

 

 

 

       
       
       
       
       
       
       
       
       
     (41,984)  (41,984)
       
       
       
       
       
     (1,990,000) (365,277) (2,355,277) 11,315 (2,343,962)
       
  2,957,393  2,957,393(105)2,957,288
       
05,000,00020,954,2741,884,98634,145,10936,01033,181,119

 

 

Grupo Simec, S.A.B. de C.V. and Subsidiaries

(Subsidiary of Industrias CH, S.A.B. de C.V.)

Notes to the consolidated financial statements

 

 1.Nature of business and relevant events

 

Nature of business – The principal activities of Grupo Simec, S.A.B. de C.V. and subsidiaries (the Company) are the manufacture and sale of special bar quality “SBQ” commercial and profiles structural steel products for the automotive and construction industries both in Mexico, the United States (USA) and Canada. The Company is a subsidiary of Industrias CH, S.A.B. de C.V. (Industrias CH). The Company is a private company with limited liability incorporated and existing under the laws of Mexico. The address of its registered office and place of business is Calzada Lazaro Cardenas 601, Guadalajara, Jalisco, Mexico.

 

 2.Basis of preparation

 

a. The consolidated financial statements- As result of the adoption of IFRS mentioned in note 1, consolidated financial statement, interim no audited, have been prepared according to IAS 34, financial information interim, and are part of the first consolidated financial statement according to IFRS, issued to the year ended December 31, 2012, for this reason we have adopted the disposition of IFRS 1, additionally , this consolidated financial statement not include the information and disclosure required for annual financial statement according with IFRS.

 

The Company has included recurring adjustment accounting estimates considered necessary for presentation of the consolidated financial statements interim no audited according to IAS 34. Comprehensive income for the fourth quarter ended December 31, 2012 is not necessarily an indicator of comprehensive income that could be expected for the year ended December, 31 2012.

 

The account policies applied to these financial statement are consistent with those applied to the consolidated financial statement at December 31, 2011.

The financial statements presented on this report were prepared under International Financial Reporting Standard (IFRS).

 

 

b. Historic Cost- consolidated financial statement have been prepared on the historical cost basis, except for certain financial instruments valued to fair value which are valued to fair value. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

 

c. Consolidated Base-consolidated financial statement include of Grupo Simec, S. A. B. de C. V. and the entities (including special purpose entities) controlled by the company (its subsidiaries). Control its obtained when the Company has the power to govern the financial and operating policies of an entity to obtain benefits from its activities. The outcome of subsidiaries acquired or sold during the year include in the consolidated statement of comprehensive income from acquisition date or the date of sale, as the case. Comprehensive income is attributed to both, the company and non-controlling interest even if the non- controlling present a deficit.
  
    

If necessary, further adjustments are done on the financial statements of subsidiaries to adapt their accounting policies that are aligned with those used by other group members. All transactions, balances, income and expenses between companies that are consolidated are eliminated on consolidation.

 

 

 

The changes in investments in subsidiaries of the company that not resulting in a loss of control is recorded as equity transactions. The book value of investments and equity of the company controlled not adjusted to reflect changes in related investments in subsidiaries. Any difference between the amount for which share are adjusted not controlled and the fair value of consideration paid or received is recognized directly in equity and attributed to the owners of the company.

 

When the company loss control of a subsidiary, the gain or loss on disposal is computed as the difference between (i) the aggregate fair value of compensation received ant the fair value of any retained interest and (ii) the value prior books of the assets (including goodwill) and liabilities of the subsidiary and any non-controlling interest.

 

The amounts recognized in other comprehensive income items relating to the subsidiary are recorded (ie to income are reclassified or transferred directly to retained earnings) in the same manner established for the case of the availability of assets or liabilities relevant. The fair value of any investment retained in the former subsidiary at the date of loss of control is considered fair value for the initial recognition in subsequent accounting according to IAS 39 “Financial Instruments Recognition and Measurement”, or if applicable, the cost on initial recognition of an investment in an associate or under joint control entity.

 

Business acquisitions recorded using the purchase method. The consideration given for each acquisition are measured at fair value at the date of exchange, of assets given, liabilities incurred or assumed and equity instruments issued by the company in exchange for control of the acquire. Cost related to the acquisition is recognized in income incurred.

 

The identifiable assets acquired and liabilities assumed are recognized at the fair value at the acquisition date, except that:

-Assets and liabilities deferred income tax liabilities or assets and related agreements, employee benefits are recognized and valued in accordance with IAS 12, “Income tax and IAS 19, employee benefits, respectively;

-Liabilities or equity instruments related to the replacement by the Company acquired the business incentive base payments in shares, are valued in accordance with IFRS 2, “Share based payment” and.

 

The assets or group of assets for sale are classified as held for sale under IFRS 5, long term assets available for sale and discontinued operation, are valued pursuant with this standard.

 

Goodwill is recognized as an asset to the date on which control is acquired, the acquisition date and is valued as the excess of the amount of the consideration paid, plus the value of the non-controlling interest in the business acquired over the fair value of the acquired business share in the previously possessed, if any, on the net at the acquisition date of the identifiable assets acquired and liabilities assumed. If the value of these last is higher, the difference shall be recognized immediately in income as a gain from a bargain purchase.

 

The non-controlling interest on the acquired business should appraise initially at fair value or proportion of the non-controlling interest on the net value at the date of acquisition of the identifiable assets acquired and liabilities assumed. The choice of the basis of valuation of the non-controlling is done case by case.

 

When the consideration paid by the Company in a business acquisition includes assets or liabilities resulting from a contingent consideration, it is valued at its fair value at the acquisition date and include as part of the consideration paid.

 

Changes in the fair value of contingent consideration, which they describe as valuation period settings are adjusted against goodwill retrospectively determined.

The valuation period settings are settings that are determined as a result of information obtained during the “period of valuation”, which can´t exceed one year from the date of acquisition, on facts and

 

 

circumstances that existed at the acquisition date. The record of changes in fair value subsequent to the period of valuation is based on the classification of contingent consideration in the statement of financial position. If the contingent consideration is classified as equity, changes in fair value not recorded and the variation may be seen as contingent consideration is recorded in liquid capital. If the contingent consideration is classified an asset or liability, changes in fair value are recognized in accordance with IAS 39 “Financial Instruments Recognition and Valuation, or IAS 37, Provisions. Contingent Liabilities and Contingent assets, as appropriate, and corresponding gain or loss is recorded in the utility.

 

The initial recognition of business acquisition is not completed at the end of the reporting period, in which acquisition occurs, the Company reported provisional amounts for the items whose recognition is incomplete. During the period of valuation, the Company recognizes adjustments to provisional amounts recognized asset or liability or additional requirements to reflect new information obtained about facts and circumstances that existed at the acquisition date, which if known, would have affected the valuation of amounts recognized at that time.

 

 

 

At December 31, 2020 the subsidiaries of Grupo Simec, S. A. B. de C. V. included in the consolidation are as follows.

 

Percentage of equity owned

 

Subsidiaries established in Mexico:20202019
Compañía Siderúrgica de Guadalajara, S.A. de C.V.99.99%99.99%
Arrendadora Simec, S.A. de C.V.100.00%100.00%
Simec International, S.A. de C.V.100.00%100.00%
Compañía Siderúrgica del Pacífico, S.A. de C.V.99.99%99.99%
Coordinadora de Servicios Siderúrgicos de Calidad, S.A. de C.V.100.00%100.00%
Industrias del Acero y del Alambre, S.A. de C.V.99.99%99.99%
Procesadora Mexicali, S.A. de C.V.99.99%99.99%
Servicios Simec, S.A. de C.V.100.00%100.00%
Sistemas de Transporte de Baja California, S.A. de C.V.100.00%100.00%
Operadora de Servicios Siderúrgicos de Tlaxcala, S.A. de C.V.100.00%100.00%
Operadora de Metales, S.A. de C.V.100.00%100.00%
Administradora de Servicios Siderúrgicos de Tlaxcala, S.A., de C.V.100.00%100.00%
CSG Comercial, S.A. de C.V.99.95%99.95%
Corporativos G&DL S.A. de C.V.(1)100.00%100.00%
Operadora de Servicios de la Industria Siderúrgica ICH, S.A. de C.V.100.00%100.00%
Corporación Aceros DM, S. A. de C. V. y Subsidiarias (3)100.00%100.00%
Acero Transportes San, S. A. de C. V. (3)100.00%100.00%
Simec Acero, S.A. de C.V.100.00%100.00%
Corporación ASL, S. A. de C. V. (1)99.99%99.99%
Simec International 6, S. A. de C. V. (1)100.00%100.00%
Simec International 7, S. A. de C. V. (1)99.99%99.99%
Simec International 9, S. A. P. I. de C.V.99.99%99.99%
Orge, S.A. de C.V.99.99%99.99%
Siderurgica de Occidente del Pacifico, S.A. de C.V. 99.99%99.99%
RRLC, S.A DE C.V. 99.99%99.99%
Republic Steel(5) 50.22%52.00%
Pacific Steel, Inc. (5)100.00%100.00%
Pacific Steel Projects, Inc. (5)100.00%100.00%
Simec Steel, Inc. (5)100.00%100.00%
Simec USA, Corp. (5)100.00%100.00%
Undershaft Investments, NV. (6)100.00%100.00%
GV do Brasil Industria e Comercio de Aco LTDA (7)100.00%100.00%
Companhia Siderúrgica do Espirito Santo S.A.(11)100.00%100.00%
GS Steel B.V100.00%100.00%

 

(1) Entities established in 2010.

 

(2) Entities that change their address and fiscal authority, to the state of California, USA through 2011. Since the change, the main activity of this entities is the acquisition of new business or projects (Investment funds).

 

(3) This Subsidiaries are located in San Luis Potosi, in Mexico, which were acquired by Grupo Simec, S.A.B. de C.V. in 2008. For effects of these Financial Statements, this companies are named as ”Grupo San”.

 

(4) The parent Company ICH it’s the owner of 49.78% of capital stock of this subsidiaries.

 

(5) Companies established in the United States of America, except for one facility that is established in Canada.

 

 

 

(6) Subsidiary established in Curacao.

 

(7) Subsidiary established in Brazil. (See paragraph k, below)

 

d Cost and Expenses Classification - Are presented its function due the practice of industry belong the Company.

 

3. Summary of significant account policies.

 

a. Conversion of financial Statement of Foreign Subsidiaries

 

As a result of early adoption of IFRS as mentioned in Note 1, the financial statements have been prepared in accordance with IFRS-1, First-time Adoption of International Financial Reporting Standards.

 

The functional and reporting currency of the Company is the Mexican peso. The financial statements of foreign subsidiaries were translated to Mexican pesos in accordance with International Accounting Standard (IAS) 21, “The Effects of Changes in Foreign Exchange Rates”. Under this standard, the first step to convert financial information from foreign operations is the determination of the functional currency. The functional currency is the currency of the primary economic environment of the foreign operation or, if different, the currency that mainly impacts its cash flows.

 

The U.S. dollar is considered as the functional currency of the U.S. subsidiaries, SimRep Corporation and Subsidiaries, Inc (Republic) and Pacific Steel Inc. and the Brazilian real for GV do Brasil Industria e Comercio de Aco LTDA., therefore the financial statements of these subsidiaries were translated into Mexican pesos by applying:

 

a. The exchange rates at the balance sheet date to all assets and liabilities.

 

b. The historical exchange rate at stockholders’ equity accounts and revenues, costs and expenses.

 

 

Relevant exchange rates used in the preparation of the consolidated financial statements were as follows (Mexican pesos per one U.S. dollar):

 

 

Current exchange rate as of March 31, 2020

24.2853
 Current exchange rate as of June 30, 202023.1325
 Current exchange rate as of September 30, 202022.3598
 Current exchange rate as of December 31, 202019.9352
   

 

b. Cash and cash equivalents

 

Cash consists of deposits in bank accounts that do not generate interest. Cash equivalents consists in temporary investments refer to short- term fixed income investments whose original maturity is less than three months. These investments are expressed at cost plus accrued yields. The value so determined is similar to their fair value

 

 

 

 

 

c. Allowances for doubtful accounts

 

The Company follows the practice of recording an estimation of an allowance for doubtful accounts, which is computed considering the balance of customer with age higher than one year, those under litigation or the possible loss for non-fulfillment of the customer. Actual result may differ materially from these estimates in the future.

 

d. Inventories and cost of sales

 

Inventories are recorded at the lower of acquisition cost and production, which cost do not exceed the market value or net realizable value. The allocation of cost used is the average cost method. The net realization value represent the estimated selling price for inventories less all costs to complete all necessary costs and for sale.

 

The Company classifies the raw materials inventory on the balance according to the expected date of consumption but she represented as long term inventory who according to historical data and trends, are not consumed in the short term (one year).

 

The Company follows the practice of creating a reserve for slow moving inventory, considering all of products and raw materials with turnover greater than one year.

 

e. Property Plant and equipment- Are recorded at cost less any recognized impairment loss. The cost include professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the accounting policies of the Company. Depreciation is recognized for writing off the cost of assets (other than land and properties under construction) less its residual value over their useful lives using the straight-line method, and commences when the assets are ready for their intended use. The estimated useful-lives, residual values and depreciation method are reviewed at the end of each year, and the effect of any change in the estimate recorded is recognized on a prospective basis.

 

Land is not depreciated.

Property, plant and equipment fail to recognize when they are available or when no future economic benefits expected from its use. The gain or (loss) arising on the disposal or retirement of assets, is the difference between income from the sale and book value of the asset and is recognized in income.

 

The estimated useful lives of the main assets of the Company are:

 

 Years
 

 

Buildings10 to 65
Machinery and equipment5 to 40
Transportation equipment4
Furniture, mixtures and computer equipment3 to 10

 

f. Leasing- Leases are classified as financial leases when the terms of the lease transfer substantially all the risk and benefits inherent to ownership. All other lease transfer classified as operating leases.

 

 

The assets held under finance leases are recognized as assets of the Company at their fair value at inception of the lease, or if lower, the present value of minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease liability.

Lease payments are apportioned between the finance charge and the reduction of lease obligation in order to achieve a constant interest rate on the remaining balance of the liability. Finance cost are charged directly to income, unless they can be directly attributable to qualifying assets, in which case it is capitalized in accordance with the general policy of the Company for borrowing costs. Contingent rents are recognized as expenses in the period incurred.

Income payments under operating leases are charged to expense using the straight line method during the period corresponding to the lease, but is more representative of another systematic basis is more representative of the pattern of the benefits of leasing for the user. Contingent rents are recognized as expenses in the period incurred.

If the Company receives incentives to enter an operating lease, these are recognized as a liability and the added benefit of them is recognized as a reduction of rental expenses on a straight-line basis, unless it sis representative as another systematic basis is more representative of the pattern of benefits to the user.

g. Borrowing Cost. Borrowing costs directly attributable to the acquisition construction or production of qualifying assets, which are assets that require a substantial period of time until ready for use or sale, are added to the cost of those assets during that time until they are ready for use or sale.

The income obtained by the temporary investment of specific borrowings pending funds to be used in qualifying assets is deducted from the borrowing costs eligible for capitalization.

All other borrowing cost are recognized in income during the period they are incurred.

h. Intangible assets- Intangible assets with finite useful- lives acquires separately are recorded at cost less accumulated amortization and accumulated impairment losses. Amortization is based on the straight-line method over their estimated useful lives. The estimated useful lives, residual value and amortization method are reviewed at the end of each year, and the effect of any change in the estimate recorded is recognized on a prospective basis. Intangibles assets with as indefinite useful life acquired separately are recognized at cost less accumulated impairment losses.

Disbursements arising from research activities are recognized as an expense in the period in which incurred.

An internally generated intangible asset arising out of activities of development (or from the development phase of an internal project) is recognized if and only if all the following have been demonstrated.

 -Technical feasibility of completing the intangible asset so that may be available for use or sale,

 -The intention of completing the intangible asset and use or sell it,

 -The ability to use or sell the intangible asset,

 -The manner in which the intangible asset will generate probable future economic benefits,

 -The availability of adequate technical, financial or otherwise , to complete the development and use or sell the intangible asset, and

 -The ability to value reliably the expenditure attributable to the intangible asset during its development.

 

The amount initially recognized for internally generated intangible asset is the sum of expenditure incurred from the time that the item meets the conditions for recognition set out above. When you can´t recognize an internally generated intangible asset, the development expenditure is expensed in the period incurred Subsequent to initial

 

 

recognition, internally generated intangible asset is recognized at cost less accumulated depreciation and any accumulated impairment losses, on the same basis intangibles assets acquired separately.

 

When an intangible asset acquired in a business combination and recognized separately from goodwill, its cost is its fair value at the acquisition date (which is considered as its cost). Subsequent to initial recognition, an intangible asset acquired in a business combination are recognized at cost less accumulated depreciation and any accumulated impairment losses, on the same basis as intangible assets acquired separately.

 

An intangible asset is left to recognize when it is available or when no future economic benefits are expected to use. The gain or (loss) obtained arising from the lowering of intangible, calculated as the difference between the net disposal proceeds and its carrying amount is recognized in earnings.

 

 i.Goodwill- Goodwill arising from a business combination is recognized as an asset at the date on which control is acquired (acquisition date) less accumulated impairment losses. For purposes of assessing impairment, goodwill is allocated to each cash generating units of the Company expects to benefit from the synergies of this combination. The cash generating units to which goodwill is allocated are subject to impairment reviews annually, or more frequently if there is an indication that the unit may be impaired. If the recoverable amount of the cash generating units less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of the unit, based on the carrying amount of each asset in the unit. The impairment loss recognized for goodwill purposes can´t be reversed at a later period. Having a cash generating unit, the amount attributable to goodwill is included in determining the gain or loss on disposal.

 

 j.Impairment of tangible and intangible assets excluding goodwill- To the end of each year, the Company reviews the carrying amounts of its tangible and intangible assets to determine whether there is an indication that those assets have suffered any loss deterioration. If there is any indication, we calculate the assets have recoverable amount to determine the extent of the impairment loss (if any). When it is not possible to estimate the recoverable amount of an individual asset, the Company estimate the recoverable amount of the cash generating unit to which the asset belong. When you can identify a reasonable and consistent distribution of corporate assets are also allocated to individual cash generating units, or otherwise, are assigned to the smallest group of cash generating units for which can be identified based reasonable and consistent distribution. Intangible assets with an indefinite useful life or not yet available for use, are subjected to test for purposes of impairment at least annually and whenever there is an indication that the asset may be impaired. The recoverable amount is the higher of fair value less cost to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate before tax that reflects current market assessments of the value of money and the risks specific to the asset for which have not been adjusted estimates of future cash flows. If it is estimated that the recoverable amount of an asset (or cash generating unit) is less than its carrying amount, the carrying amount of the asset (cash generating unit) is reduced to its recoverable amount. Impairment losses are recognized immediately in profit or loss unless the assets is carried at revalued amount, in which case should be considered an impairment loss as a revaluation decrease, where an impairment loss subsequently reverses, the carrying amount of the asset (cash generating unit) is increased to the revised estimated recoverable amount, so that the increased carrying amount does not exceed the carrying amount is have not been determined whether an impairment loss recognized for the asset (or cash generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss unless the assets is recognized to an amount revalued in which case the reversal of the impairment loss is treated as a revaluation increase.

 

 k.Provisions -. Provisions are recognized when the Company has a present obligation (legal or assumed) as a result of past events, if it is likely that the Company has to liquidate the obligation and reliable estimate can be made of the amount of the obligation.

 

The amount recognized as a provision is the best estimate of the expenditure required to settle the present obligation at the end of the reporting period under review, taking into account the risk and uncertainties that surround obligation. When a provision is valued using cash flows estimated to settle the present obligation, its carrying amount represent the present value of those cash flows.

 

 

 

When expected to recover from a third party of some or all the economic benefits required to settle a provision is recognized a receivable as an asset if it is virtually certain to be received the disbursement and the amount of the receivable can be valued reliably.

 

 l.Cost of retirement benefits. Contributions to benefit plans to defined contribution retirement are recognized as expenses at the time the employees render the services that entitle them to the contributions.

 

In the case of defined benefit plans, the cost of such benefits are determined using the projected unit credit method, with actuarial valuation carried out at the end of each period being reported. Gain and losses that exceed 10% of the greater of the present value of defined benefit obligations of the Company and the fair value of plan assets at the end of last year, are amortized over the estimated average remaining working lives of employees participating in the plan. The past service costs are recognized immediately to the extent that benefits are acquired otherwise, are amortized using the straight-line method over the average period until the benefits become acquired.

 

The retirement benefit obligation recognized in the statement of financial position represent the present value of defined benefit obligation, adjusted for gains and losses not recognized and the costs of unrecognized past service, less the fair value of the plan assets. Any asset that arises from this calculation is limited to unrecognized actuarial losses and past service cost, plus the present value of reimbursements and reductions in future contributions to the plan.

 

 m.Income per share- Earnings per share are calculated by dividing net income controlling interest by the weighted average of common shares outstanding for each of the periods presented.

 

 n.Income Taxes. Expense for income taxes represent the sum of the resulting income taxes payable and deferred income tax.

 

Current Income Tax- The current income tax is the higher income tax (ISR) and the flat rate business tax (Flat Tax) and is recognized in income in the year they are incurred. The income tax payable is based on fiscal profits and cash flows of each year respectively. The fiscal profit differs from profit reported in the consolidated statement of comprehensive income due to items of income or expenses taxable and deductible in other years and items that are never taxable or deductible. The company´s liability for taxes due is computed using tax rates enacted or substantially approved at the end of the period over which it is reported.

 

Deferred Income Tax- The company determined, based on financial projections, determine whether ISR or Flat Tax in the future and recognize the corresponding deferred tax on the tax it paid. Deferred tax is recognized temporary differences between the carrying amount of assets and liabilities included in the financial statements and the corresponding tax base used to determine the tax profit, using the liability method. The deferred tax liability is generally recognized for all temporary tax differences. It recognizes a deferred tax asset, because of all deductible temporary differences, as far as is probable that the future taxable profits available against which to apply those deductible temporary differences. These assets and liabilities are not recognized if temporary differences arise from goodwill or the initial recognition (other than the business combination) of other assets and liabilities in a transaction that affects neither the tax profit accounting profit.

 

The carrying value of deferred tax asset should be reviewed at the end of each year and should be reduced to the extent deemed unlikely to have sufficient taxable profits to allow it to recover all or a portion of the asset.

 

Assets and deferred tax liabilities are computed using tax rates expected to apply in the period when the liability is paid or the asset is realized, based on the rates (and tax act) that have been approved or substantially approved the end of the reporting period under review. The valuation of liabilities and deferred tax assets reflects the tax consequences that would result from the way the Company

 

 

expects, at the end of the reporting period under review, to recover or settle the carrying amount of assets and liabilities.

It also recognizes a deferred tax asset for the estimated future effects of tax loss carry-forwards and tax credits recoverable asset. It records a valuation allowance to reduce the balance of deferred tax assets to the amount of future net benefits are more likely than not they do.

Deferred tax assets and deferred tax liabilities are offset when there is a statutory right to offset short-term assets with short term liabilities as they relate to income taxes for the same taxation authority and the Company intends to liquidate its assets and liabilities en a net basis.

Current income tax and deferred income tax period. Current and deferred are recognized as income or expense in profit or loss, except when related items that are recognized out of the income, either in other comprehensive income or (loss) or directly in equity, in which case the tax is also recognized outside of the outcome, or when arising on initial recognition of a business combination.

Interest on balance recoverable taxes- Interest on tax receivables balances are presented in the consolidated statement of comprehensive income as interest income.

Income Tax in the interim period - The income tax is recorded in the interim period based on the estimated annual effective rate.

 

o Foreign currency transaction- In preparing the financials statements of individual entities, transaction in currencies other than the entity´s functional currency (foreign currencies) are recorded using exchange rates prevailing at the dates on which operations are carried out. At the end each reporting period, monetary items denominated in foreign currency are converted at exchange rates prevailing at that time.

 

The exchange rate differences are recognized in the income statement except:

 -Foreign exchanges differences from foreign currency denominated loans relate to assets under construction for future productive use, which are included in the cost of those assets when considered as an adjustment to interest cost on loans denominated in foreign currency,

 - 

 -Differences on exchange derived from transaction related to hedging exchange rate risks, and

 - 

 -Differences in exchange rate from monetary items receivable from or payable to a foreign operation for which it is planned or is it possible to make a payment (forming part of the investment in foreign operations), which are initially recognized in other comprehensive income and reclassified from equity to profit or loss when selling all or part of investment.

 - 

 

 p.Financial Instruments – assets and liabilities are recognized when the Company is part of the contractual provisions of the instrument.

The assets and liabilities are measured initially at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and liabilities are increased or decreased from its fair value, as appropriate, on initial recognition, the transaction costs directly attributable to the acquisition of assets or liabilities at fair value through income is recognized immediately in earnings.

 q-Financial assets- Financial assets are classified into the following specific categories, “financial assets at fair value through income”, “preserved at maturity investment”, “financial assets available for sale” and loans and charge receivable. The classification depends on the nature and purpose of financial assets and is determined at the time of initial recognition. All financial assets are recognized and unknown on trade date where purchase or sale of financial assets is under a contract whose terms require delivery of

 

 

 

  the asset during a period which is usually set by the relevant market.

 

The method of the effective interest rate is a method of computed the amortized cost of a financial instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts including all fees on points based on interest paid or received that form an integral of the effective interest rate, transaction costs and other premiums or discounts over the expected life of the debt or financial instrument (where appropriate) in a shorter period, with the carrying amount on initial recognition.

 

The Company has no financial assets classified as “financial assets at fair value through income”, “preserved at maturity investments” or “financial assets available for sale”,

 

Accounts receivable, loans and other receivable with fixed or determinable payments that are not trade in an active market are classified as loans and receivable. Loans and receivables are stated at amortized cost using the effective interest method, less any impairment.

 

Financial assets other than financial assets at fair value through income, are subject testing for effects of impairment at the end of each period which is reported. It is considered that financial assets are impaired when there is objective evidence that as a result of one or more events that occurred after initial recognition of financial asset, the estimated future cash flows of the financial assets have been affected.

 

The estimates and underlying assumption are reviewed on a regular basis. The reviews at accounting estimates are recognized in the period of the review and future periods if the review affects both current period and to subsequent periods.

 

Objective evidence of impairment could include:

 

 -Significant financial difficulties of the issuer or counterparty, or

 -Non-payment of interest or principal, or

 -It is likely that the borrower will enter bankruptcy of financial reorganization, or

 -The disappearance of an active market where quoted by the financial asset because of financial difficulties.

 - 

For certain categories of financial assets such as accounts receivables, assets that have been subjected to testing for effects impairment and have not been impaired as individual, are included in the evaluation of impairment on a collective basis. Among the objective evidence that a portfolio of accounts receivable may be impaired, you could include the past experience of the Company with respect to the collection, an increase in the number of last payments in the portfolio in excess of the average credit period of 60 days as well as changes observable in national and local economic conditions that correlate with default on payments.

 

For financial assets carried at amortized cost, the amount of impairment loss recognized is the difference between the book value of assets and present value of future cash receipts discounted at the original effective interest rate of the asset financial.

 

The carrying value of financial assets is reduced by the impairment loss directly for all financial assets except for accounts receivable, where the carrying amount is reduced through an account estimate for doubtful accounts. When you consider that a receivable is uncollectible, it is removed from the estimate. The subsequent recovery of amounts previously deleted become claims against the estimate. Changes in the carrying value of the account of the estimate is recognized in income.

 

Except for equity instruments available for sale, if, in a subsequent period, the amount of the impairment loss decreases and this decrease can be related objectively to an event that occurs after recognition of impairment, impairment loss previously recognized is reversed through income to the extent that the carrying amount of investment to date reversed the impairment does not exceed the amortized cost would have been if he had not recognized the damage.

 

 

 

The company fails to recognize a financial asset only when the contractual rights on the cash flows of financial assets, and transfers substantially all the risk and benefits inherent to the ownership of financial assets. If the Company neither transfer not retains substantially all the risks and benefits inherent to the ownership and continues to retain control of the asset transferred, the Company recognizes its interest in the asset and liability associated to the amounts that would have to pay. If the Company retains substantially all risks and benefits inherent in ownership of transferred financial asset, the Company continues to recognize the financial asset and also recognizes collateral for loan funds received.

 

When fully unknown a financial asset, the difference in value of the asset and the amount of the consideration received and the cumulative gain or loss that has been left to recognize in other comprehensive income (loss) and accumulated in the equity is recognized in income.

 

Not knowing a financial asset in part (where the Company retains the option to repurchase part of a transferred asset, or retains a residual interest that does not result in the retention of substantial risk and benefits property and the company retains control), the Company distributed the previous value of the asset financial between the part that continues to be recognized and the part no longer recognized based on the fair value of those parts of the date of transfer. The difference between the carrying amount allocated to the party is no longer recognized and the amount of the consideration received by such party, and any cumulative gain or loss allocated to it has been recognized in other comprehensive income (loss) will be recognized in income.

 

 s.Financial liabilities – debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definition of a financial liability and equity instrument. Financial liabilities are classified either as “financial liabilities at fair value through income “or” other financial liabilities”-

 

Financial liability at fair value through income is a financial liability is classified as held trading or is designated as fair value through income.

 

A financial liability is classified as held for trading if:

 -Is acquired principally for the purpose of repurchasing in the near future, or,

 -On initial recognition is part of identified financial instruments that are managed together and for which there is evidence of a recent pattern of making short-term profits, or

 -It is a derivative not designed as hedges and meet the conditions to be effective.

A financial liability other than a financial liability held for trading may be designated as an financial liability at fair value through profit or loss upon initial recognition if:

 

 -This eliminates or significantly reduces an inconsistency in the valuation or recognition that would otherwise arise, or

 -The performance of a group of financial assets, financial liabilities or both is managed and evaluated on the basis of fair value, according to an investment strategy or risk management that the entity´s documented, and provide internally about that group, based on their fair value or,

 -Part of a contract containing one or more embedded derivatives, and IAS 39, Financial instruments Recognition and Measurement, allow the entire hybrid contract (asset or liability) is designated as at fair value through income.

 

Financial liabilities at fair value through income are recorded at fair value recognize any gain or loss arising from the remediation in the income statement. The gain or loss recognized in the statement include any dividend or interest earned from the financial asset and is included under the heading “other gains and losses” in the statement of comprehensive income.

 

 

 

Other financial liabilities, including loans, are valued initially at fair value, net of transaction costs. The method of effective interest rate is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate exactly discounts estimated cash payments over the expected life of the financial liability (or, where appropriate, a short period) to the carrying amount financial liabilities on initial recognition.

 

The Company writes off financial liabilities if and only if, the Company´s obligations are fulfilled, cancelled or expire. The difference between the carrying amount of financial liability discharged from and the consideration paid and payable is recognized in earnings.

 

t         Derivative financial instruments – The Company uses derivative financial instruments to manage its exposure to risk in the changes in natural gas prices, which is used for production, conducting studies on historical volumes, future requirements or commitments, reducing the exposure to risks outside the normal operation of the Company.

 

Derivatives are initially recognized at fair value at the date the derivative contract subscribe and then remiden at fair value at the end of the reporting period. The gain or loss is recognized in income immediately unless the derivative is designated and is effective as a hedging instrument, in which case the timing of the recognition results depend on the nature of the hedging relationship.

 

In order to mitigate the risks associated with fluctuations in the price of natural gas, whose price is based on supply and demand from major markets, the Company uses exchange contracts or swaps cash flow of natural gas, where price the Company receives floating and pays fixed price. Fluctuations in the price of this energy input from consumed volumes are recognized as part of the operating costs of the Company.

 

At the beginning of the hedging relationship, the Company documents the relationship between the hedging instrument and hedged item, along with its risk management objective and strategy of hedging transactions. Additionally, the inception of the hedge and on an ongoing basis, the Company documents whether the hedging instrument is highly effective in offsetting the exposure to change in fair value or changes in cash flows of the hedged item.

 

The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flows hedges is recognized in other comprehensive income and accumulated under the title of the fair value of derivative financial instruments, net of profit taxes. Gains and losses on the ineffective portion of the hedging instrument is recognized instrument is recognized immediately in income, and is included in other income (expense)

 

The Company periodically assesses the changes in cash flows from derivative financial instruments to analyze if the swaps are highly effective in reducing exposure to fluctuations in the price of natural gas. A hedging instrument is considered highly effective when changes in fair value or cash flows of the primary position are compensated on a regular basis or as a whole, by changes in the fair value or cash flows of the hedging instrument in a range between 80% and 125%.

 

Amounts previously recognized in other comprehensive income and accumulated in equity are reclassified to earning in the periods when the hedged item is recognized in income in the same area of the statement of comprehensive income of hedged item recognized. However, when a forecast transaction that is covered gives rise to the recognition of a non-financial asset or liability is not financial gain or loss previously accumulated in equity are transferred and include in the initial valuation of the cost of the asset does not financial or nonfinancial liabilities.

 

Hedge accounting is discontinued when the Company reverses the hedging relationship, when the hedging instrument expires or is sold, terminated, or exercised, or no longer meets the criteria for hedge accounting. Any cumulative gain or loss on the hedging instrument that is recognized in equity remain in equity until the forecast transaction is ultimately recognized in the results. When no longer expects the forecast transaction occurs, the cumulative gain or loss in equity is immediately reclassified the results.

 

 

 

u. Revenue recognition Revenue is recognized in the period in which transfer the risks and benefits of inventories to customer who purchased them, which usually coincides with the delivery of products to customers in fulfilling their orders. Net sales represent the goods sold at list price, less returns received and discounts.

 

V. Segments Information Segment information is presented in accordance with the region and due to the operation business is presented in accordance with the information used by management for decision making purposes.

 

w. Earnings (loss) per share

Income per share is calculated by dividing controlling net income or loss, by the weighted average shares outstanding during each year presented. 

 

 

 

      
BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMEC   QUARTER: 4YEAR 2020
GRUPO SIMEC, S.A.B. DE C.V    CONSOLIDADO
      
INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
      
      
 
 (THOUSAND PESOS)    
COMPANY NAMEPRINCIPAL ACTIVITYNUMBER OF SHARES% OWNERSHIPTOTAL AMOUNT
ACQUISITION COSTCURRENT VALUE
SIMEC INTERNATIONALFABRICACION Y VENTA DE PROD. DE ACERO099.9900
ARRENDADORA SIMECFABRICACION Y VENTA DE PROD DE ACERO0100.0000
PACIFIC STEELCOMPRA VENTA DE CHATARRA0100.0000
CIA SIDERURGICA DEL PACIFICOARRENDADORA DE INMUEBLES099.8900
COORDINADORA DE SERVICIOSPRESTACION DE SERVICIOS0100.0000
INDUSTRIA DEL ACERO Y EL ALAMBREFABRICACION Y VENTA DE PROD DE ACERO099.9900
PROCESADORA MEXICALICOMPRA VENTA DE CHATARRA099.9900
SERVICIOS SIMECPRESTACION DE SERVICIOS0100.0000
SISTEMAS DE TRANSPORTE DE BAJA CALIFORNIATRANSPORTISTA0100.0000
OPERADORA DE METALESPRESTACION DE SERVICIOS0100.0000
OPERADORA DE SERVICIOS SIDERURGICOS DE TLAXCALAPRESTACION DE SERVICIOS0100.0000
ADMINISTRADORA DE SERV SIDERURGICOS DE TLAXCALAPRESTACION DE SERVICIOS0100.0000
REPUBLIC STEELFABRICACION Y VENTA DE PROD DE ACERO050.2200
OPERADORA DE SERV DE LA INDUSTRIA SIDERURGICAPRESTACION DE SERVICIOS0100.0000
CSG COMERCIALCOMPRA VENTA DE PROD DE ACERO099.9500
COORPORACION ACEROS DMSUB-HOLDING099.9900
COMERCIALIZADORA ACEROS DMCOMPRA VENTA DE PROD DE ACERO0100.0000
PROMOTORA ACEROS SAN LUISCOMPRA VENTA DE PROD DE ACERO0100.0000
UNDER SHAFTSUB-HOLDING0100.0000
PROCESADORA INDUSTRIALPRESTACION DE SERVICIOS099.9900
CORPORATIVOS G&DLPRESTACION DE SERVICIOS0100.0000
ACERO TRANSPORTE SANTRANSPORTISTA0100.0000
SIMEC INTERNATIONAL 6FABRICACION Y VENTA DE PROD DE ACERO099.9900
SIMEC INTERNATIONAL 7FABRICACION Y VENTA DE PROD DE ACERO099.9900
SIMEC ACEROCOMPRA VENTA DE PROD DE ACERO0100.0000
SIMEC USACOMPRA VENTA DE PROD DE ACERO0100.0000
PACIFIC STEEL PROJECTSPRESTACION DE SERVICIOS0100.0000
SIMEC STEELPRESTACION DE SERVICIOS0100.0000
CIA SIDERURGICA DE GUADALAJARAFABRICACION Y VENTA DE PROD DE ACERO099.9900
CORPORACION ASLCOMPRA VENTA DE PROD DE ACERO099.9900
GV DO BRASILFABRICACION Y VENTA DE PROD DE ACERO099.9900
ORGEFABRICACION Y VENTA DE PROD DE ACERO099.9900
SIDER DE OCCIDENTE DEL PACIFICO, S.A. DE C.V.FABRICACION Y VENTA DE PROD DE ACERO099.9900
RRLCFABRICACION Y VENTA DE PROD DE ACERO 099.9900
SIMEC INTERNATIONAL 9FABRICACION Y VENTA DE PROD DE099.9900

 

 

 

 ACERO    
TOTAL INVESTMENT IN ASSOCIATES   00

 

 
                 
BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMEC              QUARTER: 4YEAR 2020
GRUPO SIMEC, S.A.B. DE C.V               CONSOLIDADO
BREAKDOWN OF CREDITS
(THOUSAND PESOS)
                 
 FOREIGN INSTITUTION (YES / NO)CONTRACT SIGNING DATEEXPIRATION DATEINTEREST RATEMATURITY OR AMORTIZATION OF CREDITS IN NATIONAL CURRENCYMATURITY OR AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
CREDIT TYPE / INSTITUTION TIME INTERVAL TIME INTERVAL
 CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
BANKS                
FOREIGN TRADE                
                 
SECURED                
                 
COMERCIAL BANKS                
                 
OTHER                
                 
                 
TOTAL BANKS    000000000000
                 
STOCK MARKETFOREIGN INSTITUTION (YES / NO)CONTRACT SIGNING DATEEXPIRATION DATEINTEREST RATEMATURITY OR AMORTIZATION OF CREDITS IN NATIONAL CURRENCYMATURITY OR AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
  TIME INTERVAL TIME INTERVAL
LISTED STOCK EXCHANGE (MEXICO AND / OR FOREIGN)CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
                 
UNSECURED                
MEDIUM TERM NOTESNO         06,0200000
SECURED                
                 
PRIVATE PLACEMENTS                
                 
UNSECURED                
                 
SECURED                
                 
TOTAL STOCK MARKET LISTED IN STOCK EXCHANGE AND PRIVATE PLACEMENT    00000006,0200000
                 
OTHER CURRENT AND NON-CURRENT LIABILITIES WITH COSTFOREIGN INSTITUTION (YES / NO)DATE OF AGREEMENTEXPIRATION DATE MATURITY OR AMORTIZATION OF CREDITS IN NATIONAL CURRENCYMATURITY OR AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
 CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
                 
MISCELLANEOUSNO     0    000000
                 
TOTAL OTHER CURRENT AND NON-CURRENT LIABILITIES WITH COST    000000000000
                 
                 
SUPPLIERSFOREIGN INSTITUTION (YES / NO)DATE OF AGREEMENTEXPIRATION DATE MATURITY OR AMORTIZATION OF CREDITS IN NATIONAL CURRENCYMATURITY OR AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
 CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
MISCELLANEOUSNO   0           
MISCELLANEOUSNO     843,028    0

 

4,504,297

    257,837
TOTAL SUPPLIERS    0843,028000004,504,297000257,837
                 

 

 

 

                 
OTHER CURRENT AND NON-CURRENT LIABILITIESFOREIGN INSTITUTION (YES / NO)   MATURITY OR AMORTIZATION OF CREDITS IN NATIONAL CURRENCYMATURITY OR AMORTIZATION OF CREDITS IN FOREIGN CURRENCY
   CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
CURRENT YEARUNTIL
1 YEAR
UNTIL
2 YEAR
UNTIL
3 YEAR
UNTIL
4 YEAR
UNTIL
5 YEAR
OR MORE
MISCELLANEOUSNO   000         
MISCELLANEOUSNO         000   
TOTAL OTHER CURRENT AND NON-CURRENT LIABILITIES    000000000000
                 
                 
GENERAL TOTAL    0843,028000004,510,317000257,837
                 
               
   Estas columnas no aplican para las secciones correspondientes      

 

 

BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMEC     
GRUPO SIMEC, S.A.B. DE C.V   QUARTER: 4YEAR 2020
MONETARY FOREIGN CURRENCY POSITION
THOUSAND PESOS
 
      
FOREIGN CURRENCY POSITIONDOLLARS (1)OTHER CURRENCIESTHOUSAND PESOS TOTAL
THOUSANDS OF DOLLARSTHOUSAND PESOSTHOUSANDS OF DOLLARSTHOUSAND PESOS
      
MONETARY ASSETS605,05512,061,9010012,061,901
CURRENT605,05512,061,9010012,061,901
      
NON CURRENT00000
      
LIABILITIES306,2786,105,728006,105,728
SHORT TERM292,0195,821,467005,821,467
      
LONG TERM14,259284,26100284,261
      
      
NET BALANCE298,7775,956,173005,956,173
      
(1) IN THE NOTES SECTION MUST SPECIFY THE CURRENCY AND EXCHANGE RATE  

 

 

     

 

 

 

 

       
BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
    QUARTER: 4YEAR 2020 
DEBT INSTRUMENTS
 
       
FINANCIAL LIMITATIONS IN CONTRACT, ISSUED DEED AND / OR TITLE
MEDIUM TERM NOTES     
A) Current assets to current liabilities must be 1.0 times or more  
B) Total liabilities to total assets do not be more than 0.60  
C) Operating income plus items added to income which do not require using cash must be 2.0 times or more
       
This notes was offered in the international market   
       
       
       
ACTUAL SITUATION OF FINANCIAL LIMITED
MEDIUM TERM NOTES     
A) Accomplished the actual situation is 2.67 times   
B) Accomplished the actual situation is 0.30   
C) Accomplished the actual situations 123.49   
       
As of December 31, 2020, the remaining balance of the MTNs not exchanged amounts to Ps. 6.02 Millions ($302.000 dollars)
       
       
       

 

BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMEC     
GRUPO SIMEC, S.A.B. DE C.V   QUARTER: 4YEAR 2020
DISTRIBUTION OF REVENUE BY PRODUCT
      
TOTAL INCOME
(THOUSAND PESOS)
MAIN PRODUCTS OR PRODUCT LINESALESMARKET SHARE %MAIN
VOLUMEAMOUNTTRADEMARKSCUSTOMERS
DOMESTIC SALES     
COMMERCIAL PROFILES84112,005,8170  
SPECIAL PROFILES398 6,117,0100  
OTHERS0 00  
      
TOTAL1,23918,122,8270  
      
FOREIGN SALES     
COMMERCIAL PROFILES80910,270,2340  
SPECIAL PROFILES 152 1,828,7110  
OTHERS 0 00  
      
TOTAL96112,098,9450  
      

 

 

 

FOREIGN  SUBSIDIARIES     
SPECIAL PROFILES2415,647,542   
      
      
      
T  O  T  A  L2,44135,869,314   
      
      

 

 

BOLSA MEXICANA DE VALORES, S.A.B. DE C.V. 
CLAVE DE COTIZACION: SIMEC       
GRUPO SIMEC, S.A.B. DE C.V QUARTER: 4YEAR 2020   CONSOLIDADO
ANALYSIS OF PAID CAPITAL STOCK
          
CHARACTERISTICS OF THE SHARES
SERIESNOMINAL VALUE
($)
VALID COUPONNUMBER OF SHARESCAPITAL SOCIAL
FIXED PORTIONVARIABLE PORTIONMEXICANFREE SUBSCRIPTIONFIXEDVARIABLE
         
B0090,850,050406,859,1640497,709,214441,7861,978,444
         
         
         
         
         
         
         
         
TOTAL  90,850,050406,859,1640497,709,214441,7861,978,444
          
TOTAL NUMBER OF SHARES REPRESENTING THE CAPITAL STOCK OF THE DATE OF SENDING THE INFORMATION: 497,709,214