INFRASTRUCTURE AND CONSTRUCTION DIVISION

Carso Infraestructura y
Construcción’s revenues for 2012 were

17,533

million pesos

Carso Infraestructura y Construcción

Carso Infraestructura y Construcción’s annual sales grew by 22.2% in 2012, totaling $17,533 million pesos, compared to $14,349 million pesos in sales in 2011, due mainly to a higher contribution from Manufacturing and Services for the Chemical and Oil Industry sector, as well as the increase in Pipeline Installation sales.

We continued with the progress of infrastructure projects of national significance as Atotonilco WWTP, the Emisor Oriente Tunnel and the highway bypass of Guadalajara, Tepic, Culiacán and Mazatlán.

The division’s operating income and EBITDA also presented solid growth rates of 184.6% and 140.7%, respectively, in 2012, as margins in those categories increased by 7.9 and 7.7 percentage points. Operating improvements were attained in all of the sectors, primarily in Manufacturing and Services for the Chemical and Oil Industry and Pipeline Installation.

Consolidated net income moved up from $386 million pesos in 2011 to $2,045 million pesos in 2012.

The Infrastructure business initiated construction on the Mazatlán highway bypass and on the Guadalajara southern highway bypass. Work continued on the Valley of Mexico Emisor Oriente Tunnel and on the Atotonilco Wastewater Treatment Plant (WWTP) projects. Completed projects included the Culiacán highway bypass, the El Realito dam, and several mining projects.

The improvements in sales and profitability in Manufacturing and Services for the Chemical and Oil Industry was due mainly to additions to the existing drilling contracts, the drilling of steam injection wells and the assignment of three production platforms.

With respect to Pipeline Installation, we continue to see growth in the network businesses domestically, like the natural gas network, while the construction of fiber-optic networks and links was a highlight of the International division.

The performance of the Civil Construction sector declined as a result of the completions and delays in certain project launches. The CIMMYT and the El Rosario multimodal terminal were completed, while construction continued on the Star Médica hospital in Querétaro and on several Plaza Carso buildings.

CICSA’s backlog reached $26,379 million pesos as of December 31, 2012, up 60.3% over the figure reported at the close of the previous year.

The net income of
Carso Infraestructura
y Construcción during
2012 reached

2,045

million pesos

During 2012 the construction of several projects was completed such as El Realito dam, the building of the International Maize and Wheat Improvement Center (CIMMYT) and the subway line 12 in Mexico City.

Carso Infraestructura y Construcción’s capital investments totaled $396 million pesos, in 2012, funds that were allocated to enhanced maintenance of machinery and heavy construction and production as well as drilling equipment for oil wells, among other investments.

Sincerely,

José Humberto Gutiérrez-Olvera Zubizarreta
Chief Executive Officer

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