11/03/2009 09:15 skiron\Roadshow\Presentación Roadshow Script 2.ppt

1

2

Agenda

4Business Unit Operating and Financial Results 4Q08, 2008

4Consolidated Financial Results 4Q08, 2008

42009 Guidance

4Q & A

3

Adverse market conditions, especially in 4Q08, hada significant impact on annual results

2008 Same Store Sales (SSS): Famsa Mexico -3.1%, Famsa USA -0.6%

EBITDA: Pressured by market conditions in MX andUSA, 101 new Banco Ahorro Famsa branches and 31 new stores in MX and USA

* Constant pesos of December 31, 2007(1) Nominal figures, real 4Q08 SSS: -14.8%

$544

$269

$1,654

$1,416

4Q07 * 4Q08 2007 2008

-50.7%

-14.4%

12.7% 6.4% 11.7% 9.6%

$4,272 $4,209

$14,181 $14,762

4Q07 * 4Q08 2007 2008

Total: -1.5%SSS: -10.3% (1)

Total: +4.1%SSS: -2.7%

Consolidated Net Sales Consolidated EBITDA

Peso

s (M

illio

ns)

Peso

s (M

illio

ns)

4

6 stores were opened during the Fourth Quarter, all included a Banco Ahorro Famsa branch

390421

2007 2008

+7.9%

(1) 8 of the 13 new Famsa USA stores correspond to the acquisition of Edelstein’s Better Furniture(2) Banking branches are installed within Famsa Mexico stores, and therefore do not increase retail area

Total Stores(31 new stores in the last 12 months)

494.3547.4

2007 2008

+10.7%

Total Retail Area(53,100M2 added in the last 12 months)

Num

ber o

f sto

res

M2

(Tho

usan

ds)

101131831

20084216Stores

606

4Q08

277Banco Ahorro Famsa (2)

52Famsa USA (1)

369Famsa Mexico

Total

Store and Banking branch openings

5

Grupo Famsa faces the global economic downturnwith a solid portfolio of complementary businesses

USA

1 2 3

438% of receivablesfunded through Banco Ahorro Famsa4190K customers use

Famsa credit card4Value offer includes

banking services

4277 banking branches in Famsa stores4332K savings customers &

506K credit customersthrough Famsa brandrecognition and traffic4$3,550M in funding

4Sustained gain in marketshare (Famsa USA SSS > Industry)4Credit granting and

managing experience has limited macro effects onreceivables

Grupo Famsa: Business Portfolio

6

In Mexico, low consumer confidence and increasingunemployment have affected consumption

Source: INEGI

Consumer Confidence Index Unemployment Rate

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2007

/01

2007

/03

2007

/05

2007

/07

2007

/09

2007

/11

2008

/01

2008

/03

2008

/05

2008

/07

2008

/09

2008

/11

80

85

90

95

100

105

110

2007

/01

2007

/03

2007

/05

2007

/07

2007

/09

2007

/11

2008

/01

2008

/03

2008

/05

2008

/07

2008

/09

2008

/11

4.3

Dic-2008

7

Economic slowdown pressure over consumersimpacted Famsa Mexico’s sales

Famsa Mexico’s Net Sales decreased -1.7% during 2008

100% 100%

* Constant pesos of December 31, 2007(1) Nominal figures, real 4Q08 SSS: -18.8%

$3,430 $3,084

$11,326 $11,133

4Q07 * 4Q08 2007 2008

20.8% 17.7%

18.2% 17.0%

17.9%16.2%

15.0%13.0%

28.1% 36.1%

2007 2008

Total: -10.1%SSS: -13.7% (1)

Total: -1.7%SSS: -3.1%

Famsa Mexico: % Share of sales by product category

Peso

s (M

illio

ns)

% o

f Sal

es

Other

Electronics

Furniture

White Goods

Mobile Phones

8

Banco Ahorro Famsa’s current implementation phase focuses on two fundamental objectives

1. Increase available fundsBankarize Famsa Mexico’s customers and complement the existing customer base with new accounts

Issuance of promissory notes and CDs

Obtaining interbank loans

2. Increase loans, emphasizing on credits for Famsa Mexico customers

Originate credits for existing Famsa Mexico customers as well as new customers

Take control of existing Famsa Mexico credit accounts

Complement Famsa Mexico’s credit offering with Banco Ahorro Famsa products

1

2

9

Banco Ahorro Famsa has sustained significant funding growth through diverse sources

1

195 290 391 478 59976308

534

861880202

707

1,745441

327

4Q07 1Q08 2Q08 3Q08 4Q08

Funds: Banco Ahorro Famsa

Pes

os (M

illion

s)

$3,550

Deposits –Famsa/Bank customers

Promissory notes & CDs –Famsa/Bank customers

Promissory notes & CDs –Financial Intermediaries

Interbank Loans

Deposits

332K accounts

10

Funding availability and effective integration withFamsa’s retail platform have allowed loan growth

28%

45%

27%

2008 Highlights+540% growth as consolidatedGrupo Famsa receivables(from Ps$552M to Ps$3,539M)506K credit customers (vs. 31K in 2007)190K private label (FAMSA) credit cards issued

2

Banco Ahorro Famsa currently funds 38% of Mexican receivables

Grupo Famsa consolidated Trade Accounts Receivable (2008): Ps$12,945M

Famsa Mexico

Banco AhorroFamsa

Famsa USA

11

Progress at Banco Ahorro Famsa is rapidly transforming Grupo Famsa’s financial structure

Grupo Famsa: Net Debt and Bank Deposits

$6,075 $6,094 $6,575$5,473

$576 $1,103

$1,832$3,132

1Q08 2Q08 3Q08 4Q08

$2,236 $2,329 $2,606$3,560

$7,322 $7,427 $6,776$5,846

$556$1,127 $2,306

$3,539

1Q08 2Q08 3Q08 4Q08

Grupo Famsa: Trade Accounts Receivable

Pes

os (M

illion

s)

Pes

os (M

illion

s)

Bank Deposits

Net Debt

BAF

Famsa MX

Famsa USA

12

Pressure on consumption has been even greater in the USA, especially in the Hispanic market

Source: Survey Research Center, U.S. Bureau of Labor Statistics

Consumer Sentiment Index Unemployment Rate

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2007

/01

2007

/03

2007

/05

2007

/07

2007

/09

2007

/11

2008

/01

2008

/03

2008

/05

2008

/07

2008

/09

2008

/11

2009

/01

50

60

70

80

90

100

2007

/01

2007

/03

2007

/05

2007

/07

2007

/09

2007

/11

2008

/01

2008

/03

2008

/05

2008

/07

2008

/09

2008

/11

Total Population

Hispanic population

9.7

7.6

Jan-2009

13

Famsa USA’s Net Sales grew 28.0% during 2008

$828$1,110

$2,808

$3,594

4Q07 * 4Q08 2007 2008

% Famsa-to-

Famsa8.2% 5.7% 9.3% 7.3%

Famsa USA has been able to limit the effects of thefinancial crisis on its operation

Total: +34.1%SSS: -1.6% (1)

Total: +28.0%SSS: -0.6%

* Constant pesos of December 31, 2007(1) Nominal figures, real 4Q08 SSS: -3.3%

2.1%

3.5%

5.7%

8.8%

6.1%

2004 2005 2006 2007 2008

Weakness in California, the Chicago incursion, and uncollectibles pressured 2008 EBITDA margin

Peso

s (M

illio

ns)

% E

BIT

DA

Mar

gin

14

Digital TV signal migration has been the main driver behind strong Electronics demand

100% 100%

42.9% 37.4%

23.0% 28.8%

9.4% 7.9%

9.3% 7.3%

15.4% 18.7%

2007 2008

Cross-product promotions have successfullyleveraged strong digital TV demand

Note: The US government postponed the digital signal migration date from Feb 17 to Jun 12, 2009

Customers could get a 42” LG plasma for US$499 with the purchase of US$999 or more in Furniture

% o

f Sal

es

Electronics

Appliances

Furniture

Famsa to Famsa

Other

15

Grupo Famsa is implementing targeted efforts tostrengthen its fundamentals in three main fronts

Financing

Demand

Operation

► Conclude Banco Ahorro Famsa’s implementationMitigate refinancing riskReduce cost of funding

► Ensure liquidityReduce 2009 Capex: 5 new stores MX, 3 USASeek longer terms in fundingAchieve “Operation” goals

► Reactivate core product demand (durable goods)Implement cross-business/cross-product promotions (e.g. Multisorteo)Improve shopping experience and continue direct mktg efforts (e.g. Gran Crédito)

► Diversify exposure to durable good demand sensitivityReinforce personal loan offeringIdentify other products / services with good “fit” (e.g. insurance, optics, etc.)

► Achieve greater operating efficiencyAdjust operating capacity to current market conditions (e.g. payroll, advertising)Identify areas of opportunity in operating processes (e.g. credit centralization) Optimize the use of working capital (e.g. inventory)

► Ensure / protect the quality of our ReceivablesReinforce credit granting and collection processesMaintain a conservative perspective regarding credit granting

Grupo Famsa: 2008 - 2009 Initiatives

16

Agenda

4Business Unit Operating and Financial Results 4Q08, 2008

4Consolidated Financial Results 4Q08, 2008

42009 Guidance

4Q & A

17

-0.6%-3.1%-2.7%2008

14.0%1.1%2.5%

2007

-1.6%13.3%Famsa USA-13.7%0.2%Famsa México-10.3%1.2%Total4Q084Q07

80.2% 75.7%

19.8% 24.3%

2007 2008* Constant pesos of December 31, 2007

25.2% 22.6%

19.2% 19.9%

16.2% 14.1%

12.0%9.8%

1.9%1.8%

25.6% 31.8%

2007 2008

$4,272 $4,209

$14,181 $14,762

4Q07 * 4Q08 2007 2008

-1.5%

+4.1%

Famsa USA: Share of Consolidated Net SalesSame Store Sales (%)

% o

f Sal

es

Peso

s (M

illio

ns)

Consolidated Net Sales Consolidated Product Mix

% o

f Sal

es

Net Sales

Electronics

Appliances

Furniture

Famsa to Famsa

Other

Mobile Phones

Famsa Mexico

Famsa USA

18

$1,966 $2,030

$6,489$7,191

4Q07 * 4Q08 2007 2008

$544

$269

$1,654

$1,416

4Q07 * 4Q08 2007 2008

$190

-$142

$680

$432

4Q07 * 4Q08 2007 2008

$159

$329

$518$590

4Q07 * 4Q08 2007 2008

+10.8%

-174.7%

-50.7%

+107.2%

+3.3%

-36.4%

-14.4%

+13.9%

46.0% 48.2% 45.8% 48.7% 12.7% 6.4% 11.7% 9.6%

4.4%

-3.4%

4.8% 2.9%

3.7% 7.8% 3.7% 4.0%

* Constant pesos of December 31, 2007

Gross Income EBITDA

Comprehensive Financing Expense Net Income

Peso

s (M

illio

ns)

Profitability

19

$12,945

$9,794

2007 2008

$5,470 $5,473

$3,132

$258

2007 2008

$2,344 $2,429

2007 2008

$6,479$7,300

2007 2008

+32.2%

+50.2%

+3.6%

+12.7%

3.0% 5.4%

Bank Deposits

Net Debt

$5,728

$8,604

* Constant pesos of December 31, 2007

Main Balance Sheet Accounts

% Write-Off over Credit

Sales

Trade Accounts Receivable Inventories

Net Debt and Bank Deposits Stockholder’s Equity

Peso

s (M

illio

ns)

20

Agenda

4Business Unit Operating and Financial Results 4Q08, 2008

4Consolidated Financial Results 4Q08, 2008

42009 Guidance

4Q & A

21

8Stores (1)

535

2009 Est

Banking branchesFamsa USAFamsa Mexico

Store and Banking branch openings

2009 Guidance

(1) Does not include approximately 10 stores that are being evaluated for closure.

$1,300 - $1,500EBITDA (Millions MXN)

$15,000 - $15,500Net Sales (Millions MXN)

(9%) to (5%)Famsa Mexico

2% to 5%Net Sales growth

(5%) to (3%)

2009 Est

Famsa USA

Same Store Sales growth

Summary of Financial Results

22

Forward Looking Statements

This presentation contains, or may be deemed to contain, “forward-looking statements”. By

their nature, forward looking statements involve risks and uncertainties because they relate to

events and depend on circumstances that may or may not occur in the future. The future

results of the issuer may vary from the results expressed in, or implied by, the forward-looking

statements made to you, possibly to a material degree.