Notes to consolidated financial statements
For the years ended December 31, 2011 and 2010 (as adjusted)
(In thousands of Mexican pesos ($) and thousands of U.S. dollars (US$))

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11. Derivative financial instruments

The purpose of contracting financial derivative instruments is: (i) to partially cover the financial risks for exposure to exchange rates, interest rates, and prices of natural gas and of certain metals; or (ii) the expectation of a good financial return due to the behavior of the underlying. The decision to contract an economical financial hedge is based on market conditions, the expectation of such instrument at a given date, and the domestic and international economic context of the economic indicators that influence the Company's operations.

The transactions performed with foreign exchange and/or interest rate forwards and swaps; as well as embedded derivatives, are summarized below:

		Notional			Valuation as of December 31, 2011
Instrument	Designated as	Amount ('000)	Unit	Maturity		Asset (Liability)		RIF of the year		RIF of prior year		(Profit) loss on settlement into comprehensive financing result
Dollar forwards	Negociación compra	205,000	Dollars	During 2011	$	-	$	-	$	-	$	8,101
Dollar forwards	Negociación venta	375,000	Dollars	February and march, 2012		(60,512)		60,512		-		-
Dollar forwards	Negociación venta	811,000	Dollars	During 2011		-		-		-		202,437
Dollar swaps / libor in pesos / TIIE	Negociación compra	110,000	Dollars	During 2011		-		-		-		(218,350)
TIIE swaps to fixed rate	Negociación compra	8,700,000	Mexican pesos	May 2017 and September 2018		(856,112)		308,680		547,432		283,866
TIIE swaps to fixed rate	Negociación compra	266,667	Mexican pesos	September 2012		(112)		112		-		-
TIIE swaps to fixed rate	Negociación compra	1,195,846	Mexican pesos	During 2011		-		-		-		915
TIIE swaps to fixed rate	Negociación venta	1,700,000	Mexican pesos	June 2017 and may 2018		261,915		(55,888)		(206,027)		(73,214)
Warrant	Negociación compra	5,440,770	Shares	During 2011		-		-		-		(163,382)
Embedded	N/A	23,949	Dollars	During 2012 and 2020		54,226		(32,891)		(21,335)		-
Total at December 31, 2011					$	(600,595)	$	280,525	$	320,070	$	40,373
Total at December 31, 2010					$	(76,811)	$	553,528	$	(416,134)	$	206,529

Open and closed transactions with hedge forwards to purchase foreign currency are summarized below:

	Notional			Valuation as of December 31, 2011
Instrument	Amount ('000)	Unit	Maturity		Asset (liability)		Comprehensive income		(Profit) loss on settlement into comprehensive financing result
Euro forwards purchase	6,581	Euros	January 2012 to December 2013	$	(7,736)	$	4,642	$	-
Euro forwards purchase	2,258	Euros	During 2011		-		-		(1,396)
Euro forwards sale	285	Canadian Dollar	January 2012		(89)		62		-
Euro forwards sale	814	Canadian Dollar	During 2011		-		-		(2,019)
Total at December 31, 2011				$	(7,825)	$	4,704	$	(3,415)
Total at December 31, 2010				$	(985)	$	591	$	-

The transactions opened and settled with hedge swaps to purchase metals and natural gas:

	Notional			Valuation as of December 31, 2011
Instrument	Amount ('000)	Unit	Maturity		Asset (liability)		Comprehensive income		(Profit) loss on settlement into comprehensive financing result
Copper Swaps	1,574	Tons	January to December 2012	$	(8,823)	$	6,176	$	-
Copper Swaps	8,959	Tons	During 2011		-		-		685
Aluminum Swaps	550	Tons	January to July 2012		(247)		173		-
Aluminum Swaps	3,175	Tons	During 2011		-		-		1,145
Natural Gas Swaps	131,841	MMBtu	During 2011		-		-		198
Total December 31, 2011				$	(9,070)	$	6,349	$	2,028
Total December 31, 2010				$	30,170	$	(20,290)	$	(38,639)