25. Supplemental Guarantor Information

Condensed Consolidating Financial Information

The following consolidating information presents condensed consolidating statements of financial position as of December 31, 2016 and 2017 and condensed consolidating statements of comprehensive income and cash flows for each of the three years in the period ended December 31, 2017 of the Company and Telcel (the “wholly-owned Guarantor Subsidiary”). The unconsolidated financial statements of América Móvil and Telcel reflect their investments in subsidiaries on the basis of the equity method. These unconsolidated entities are the Guarantors of most of América Móvil’s consolidated obligations. The guarantees of the Guarantor are full and unconditional.

The Company’s consolidating condensed financial information for the (i) Company; (ii) its wholly-owned guarantor subsidiary Telcel (on standalone basis), which is a wholly and unconditional guarantor under the Senior Notes; (iii) the combined non-guarantor subsidiaries; iv) eliminations and v) the Company’s consolidated financial statements are as follows:

Condensed consolidating statements of financial position


	As of December 31, 2016
	Parent		Wholly-owned Guarantor Subsidiary		Combined non-guarantor Subsidiaries		Eliminations			Consolidated Total
Assets:
Cash and cash equivalents	Ps.	4,107,645	Ps.	1,948,159	Ps.	17,162,579	Ps.	—		Ps.	23,218,383
Marketable securities		11,716,039		—		43,141,118		—			54,857,157
Accounts receivable, net		41,086,859		23,541,672		142,056,406		(1,347	)		206,683,590
Related parties		271,373,391		14,461,731		379,358,127		(664,452,757	)		740,492
Inventories, net		323,642		10,246,083		26,575,972		(274,405	)		36,871,292
Other current assets		—		951,739		18,586,354		—			19,538,093
Property, plant and equipment, Net		2,774,540		24,124,644		674,290,882		—			701,190,066
Investments in associated companies		704,272,725		134,150,348		59,589,480		(894,409,069	)		3,603,484
Intangible assets and other non-current assets, net		11,734,707		25,653,093		430,951,917		—			468,339,717

Total assets	Ps.	1,047,389,548	Ps.	235,077,469	Ps.	1,791,712,835	Ps.	(1,559,137,578	)	Ps.	1,515,042,274

Liabilities:
Short-term debt and current portion of long-term debt	Ps.	57,213,648	Ps.	—	Ps.	25,393,611	Ps.	—		Ps.	82,607,259
Current liabilities		222,336,894		178,205,640		643,759,333		(656,905,877	)		387,395,990
Long-term debt		555,475,368		—		69,718,776		—			625,194,144
Other non-current liabilities		3,448,396		885,834		152,707,752		(8,220,868	)		148,821,114

Total liabilities	Ps.	838,474,306	Ps.	179,091,474	Ps.	891,579,472	Ps.	(665,126,745	)	Ps.	1,244,018,507

Equity attributable to equity holders of the parent		208,915,242		55,985,995		714,469,820		(770,455,814	)		208,915,243
Non-controlling interests		—		—		185,663,543		(123,555,019	)		62,108,524
Total equity		208,915,242		55,985,995		900,133,363		(894,010,833	)		271,023,767

Total liabilities and equity	Ps.	1,047,389,548	Ps.	235,077,469	Ps.	1,791,712,835	Ps.	(1,559,137,578	)	Ps.	1,515,042,274

As of December 31, 2017

Parent

Wholly-owned
Guarantor
Subsidiary

Combined
non-guarantor
Subsidiaries

Eliminations

Consolidated
Total

Assets:

Cash and cash equivalents

Ps.

7,018,559

Ps.

3,553,352

Ps.

13,698,562

Ps.

—

Ps.

24,270,473

Marketable securities

10,303,535

—

48,817,141

—

59,120,676

Accounts receivable, net

9,874,652

24,064,936

167,873,940

—

201,813,528

Related parties

208,240,067

957,704

503,895,549

(712,225,090

)

868,230

Inventories, net

264,649

16,700,837

21,844,079

—

38,809,565

Other current assets

17,805,747

922,245

(1,375,246

)

—

17,352,746

Property, plant and equipment, Net

1,996,721

24,287,904

650,058,573

—

676,343,198

Investments in associated companies

747,771,790

35,569,788

3,457,152

(783,063,558

)

3,735,172

Intangible assets and other non-current assets, net

4,104,268

73,557,904

386,236,092

—

463,898,264

Total assets

Ps.

1,007,379,988

Ps.

179,614,670

Ps.

1,794,505,842

Ps.

(1,495,288,648

)

Ps.

1,486,211,852

Liabilities:

Short-term debt and current portion of long-term debt

Ps.

34,345,398

Ps.

—

Ps.

17,400,443

Ps.

—

Ps.

51,745,841

Current liabilities

161,940,198

41,304,845

797,880,314

(639,534,701

)

361,590,656

Long-term debt

547,728,176

—

98,410,882

—

646,139,058

Other non-current liabilities

69,201,904

132,728,838

40,909,234

(76,737,196

)

166,102,780

Total liabilities

Ps.

813,215,676

Ps.

174,033,683

Ps.

954,600,873

Ps.

(716,271,897

)

Ps.

1,225,578,335

Equity attributable to equity holders of the parent

194,164,312

5,580,987

741,988,231

(747,569,218

)

194,164,312

Non-controlling interests

—

97,916,738

(31,447,533

)

66,469,205

Total equity

194,164,312

5,580,987

839,904,969

(779,016,751

)

260,633,517

Total liabilities and equity

Ps.

1,007,379,988

Ps.

179,614,670

Ps.

1,794,505,842

Ps.

(1,495,288,648

)

Ps.

1,486,211,852

Condensed consolidating statements of comprehensive income

For the year ended December 31, 2015


	Parent			Wholly-owned Guarantor Subsidiary			Combined non-guarantor Subsidiaries			Eliminations			Consolidated Total
Total revenues	Ps.	173,615,615		Ps.	157,930,068		Ps.	743,147,639		Ps.	(180,955,583	)	Ps.	893,737,739
Total cost and operating expenses		126,724,721			142,902,403			663,102,125			(180,404,671	)		752,324,578

Operating income		46,890,894			15,027,665			80,045,514			(550,912	)		141,413,161
Interest (expense) income, net		(16,668,472	)		(9,031,432	)		(872,237	)		227,781			(26,344,360	)
Foreign currency exchange (loss) gain, net		(51,209,235	)		(2,060,917	)		(25,727,836	)		—			(78,997,988	)
Other financing cost, net		14,115,563			—			7,380,753			—			21,496,316
Income tax		1,150,992			1,747,302			16,281,357			—			19,179,651
Equity interest in net income of associated companies		43,077,014			(4,722,363	)		(2,534,350	)		(37,246,997	)		(1,426,696	)

Net profit (loss) for year	Ps.	35,054,772		Ps.	(2,534,349	)	Ps.	42,010,487		Ps.	(37,570,128	)	Ps.	36,960,782

Distribution of the net profit (loss) to:
Equity owners of holding company	Ps.	35,054,772		Ps.	(2,534,349	)	Ps.	41,711,424		Ps.	(39,177,075	)	Ps.	35,054,772
Non-controlling interest		—			—			299,063			1,606,947			1,906,010

Net profit (loss)	Ps.	35,054,772		Ps.	(2,534,349	)	Ps.	42,010,487		Ps.	(37,570,128	)	Ps.	36,960,782

Other comprehensive income (loss) items:
Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent years:
Effect of translation of foreign entities	Ps.	(34,224,932	)	Ps.	(4,664,901	)	Ps.	(34,129,089	)	Ps.	37,412,602		Ps.	(35,606,320	)
Effect of fair value of derivatives, net of deferred taxes		37,011			—			22,482			(21,998	)		37,495
Items not to be reclassified to profit or loss in subsequent years:
Remeasurement of defined benefit plan, net of income tax effect		(17,791,354	)		—			(10,750,136	)		10,561,072			(17,980,418	)
Available for sale		173,540			—			(169,529	)		—			4,011

Total other comprehensive income items for the period		(51,805,735	)		(4,664,901	)		(45,026,272	)		47,951,676			(53,545,232	)

Total comprehensive income for the period	Ps.	(16,750,963	)	Ps.	(7,199,250	)	Ps.	(3,015,785	)	Ps.	10,381,548		Ps.	(16,584,450	)

Comprehensive income for the period attributable to:
Equity holders of the parent	Ps.	(16,750,963	)	Ps.	(7,199,250	)	Ps.	(10,304,830	)	Ps.	17,504,080		Ps.	(16,750,963	)
Non-controlling interests		—			—			7,289,045			(7,122,532	)		166,513

	Ps.	(16,750,963	)	Ps.	(7,199,250	)	Ps.	(3,015,785	)	Ps.	10,381,548		Ps.	(16,584,450	)

Condensed consolidating statements of comprehensive income

For the year ended December 31, 2016


	Parent			Wholly-owned Guarantor Subsidiary			Combined non-guarantor Subsidiaries			Eliminations			Consolidated Total
Total revenues	Ps.	137,236,301		Ps.	173,714,225		Ps.	857,137,822		Ps.	(192,675,860	)	Ps.	975,412,488
Total cost and operating expenses		117,835,634			160,949,691			778,483,079			(191,466,226	)		865,802,178

Operating income		19,400,667			12,764,534			78,654,743			(1,209,634	)		109,610,310
Interest (expense) income, net		(12,331,095	)		97,314			(17,207,855	)		(227,781	)		(29,669,417	)
Foreign currency exchange (loss) gain, net		(46,625,392	)		(5,853,669	)		12,051,654			—			(40,427,407	)
Other financing cost, net		(10,475,673	)		(11,203,533	)		5,453,365			—			(16,225,841	)
Income tax		(7,712,179	)		1,139,631			17,971,404			—			11,398,856
Equity interest in net income of associated companies		50,968,741			(1,342,073	)		(6,677,059	)		(42,759,659	)		189,950

Net profit (loss) for year	Ps.	8,649,427		Ps.	(6,677,058	)	Ps.	54,303,444		Ps.	(44,197,074	)	Ps.	12,078,739

Distribution of the net profit (loss) to:
Equity owners of holding company		8,649,427			(6,677,058	)		50,049,280			(43,372,222	)		8,649,427
Non-controlling interest		—			—			4,254,164			(824,852	)		3,429,312

Net profit (loss)	Ps.	8,649,427		Ps.	(6,677,058	)	Ps.	54,303,444		Ps.	(44,197,074	)	Ps.	12,078,739

Other comprehensive income items:
Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent years:
Effect of translation of foreign entities		104,178,880			755,978			108,291,984			(105,728,134	)		107,498,708
Effect of fair value of derivatives, net of deferred taxes		48,496			—			30,206			(29,573	)		49,129
Items not to be reclassified to profit or loss in subsequent years:
Remeasurement of defined benefit plan, net of income tax effect		14,771,770			(12,300	)		7,477,926			(7,463,997	)		14,773,399
Available for sale		(6,673,731	)		—			(6,673,731	)		6,673,731			(6,673,731	)

Total other comprehensive income items for the period	Ps.	112,325,415		Ps.	743,678		Ps.	109,126,385		Ps.	(106,547,973	)	Ps.	115,647,505

Total comprehensive income for the period	Ps.	120,974,842		Ps.	(5,933,380	)	Ps.	163,429,829		Ps.	(150,745,047	)	Ps.	127,726,244

Comprehensive income for the period attributable to:
Equity holders of the parent	Ps.	120,974,842		Ps.	(5,933,380	)	Ps.	150,900,984		Ps.	(144,967,604	)	Ps.	120,974,842
Non-controlling interests		—			—			12,528,845			(5,777,443	)		6,751,402

	Ps.	120,974,842		Ps.	(5,933,380	)	Ps.	163,429,829		Ps.	(150,745,047	)	Ps.	127,726,244

Condensed consolidating statements of comprehensive income

For the year ended December 31, 2017

Parent

Wholly-owned
Guarantor
Subsidiary

Combined
non-guarantor
Subsidiaries

Eliminations

Consolidated
Total

Total revenues

Ps.

160,057,511

Ps.

170,991,493

Ps.

887,951,615

Ps.

(197,367,084

)

Ps.

1,021,633,535

Total cost and operating expenses

123,548,341

163,152,868

832,429,198

(197,640,175

)

921,490,232

Operating income

36,509,170

7,838,625

55,522,417

273,091

100,143,303

Interest (expense) income, net

(16,779,235

)

(12,365,116

)

1,810,523

(41,305

)

(27,375,133

)

Foreign currency exchange (loss) gain, net

(15,223,111

)

1,320,667

83,493

—

(13,818,951

)

Other financing cost, net

6,775,455

—

(8,719,215

)

—

(1,943,760

)

Income tax

14,201,399

1,386,519

9,353,593

—

24,941,511

Equity interest in net income of associated companies

32,245,041

(8,977,146

)

(13,466,845

)

(9,709,665

)

91,385

Net profit (loss) for year

Ps.

29,325,921

Ps.

(13,569,489

)

Ps.

25,876,780

Ps.

(9,477,879

)

Ps.

32,155,333

Distribution of the net profit (loss) to:

Equity owners of holding company

29,325,921

(13,569,489

)

21,417,549

(7,848,060

)

29,325,921

Non-controlling interest

—

4,459,231

(1,629,819

)

2,829,412

Net profit (loss)

Ps.

29,325,921

Ps.

(13,569,489

)

Ps.

25,876,780

Ps.

(9,477,879

)

Ps.

32,155,333

Other comprehensive income items:

Net other comprehensive income (loss) to be reclassified to profit or loss in subsequent years:

Effect of translation of foreign entities

(21,683,333

)

(1,897,936

)

(18,309,877

)

23,581,269

(18,309,877

)

Effect of fair value of derivatives, net of deferred taxes

12,292

—

12,292

(12,292

)

12,292

Items not to be reclassified to profit or loss in subsequent years:

Remeasurement of defined benefit plan, net of income tax effect

(7,075,606

)

(8,439

)

(7,046,089

)

7,084,045

(7,046,089

)

Available for sale

622,424

—

622,424

(622,424

)

622,424

Total other comprehensive income items for the period

Ps.

(28,124,223

)

Ps.

(1,906,375

)

Ps.

(24,721,250

)

Ps.

30,030,598

Ps.

(24,721,250

)

Total comprehensive income for the period

Ps.

1,201,698

Ps.

(15,475,864

)

Ps.

1,155,530

Ps.

20,552,719

Ps.

7,434,083

Comprehensive income for the period attributable to:

Equity holders of the parent

Ps.

1,201,698

Ps.

(15,475,864

)

Ps.

(5,076,855

)

Ps.

20,552,719

Ps.

1,201,698

Non-controlling interests

—

6,232,385

—

6,232,385

Ps.

1,201,698

Ps.

(15,475,864

)

Ps.

1,155,530

Ps.

20,552,719

Ps.

7,434,083

Condensed consolidating statements of cash flows

For the year ended December 31, 2015


	Parent			Wholly-owned Guarantor Subsidiary			Combined non-guarantor Subsidiaries			Eliminations			Consolidated Total
Operating activities:
Profit before taxes	Ps.	36,205,763		Ps.	(787,047	)	Ps.	58,291,845		Ps.	(37,570,128	)	Ps.	56,140,433
Non-cash items		(4,256,606	)		20,449,298			141,713,565			37,246,997			195,153,254
Changes in working capital:		(72,746,155	)		(1,580,787	)		(13,562,885	)		323,131			(87,566,696	)

Net cash flows (used in) provided by operating activities	Ps.	(40,796,998	)	Ps.	18,081,464		Ps.	186,442,525		Ps.	—		Ps.	163,726,991

Investing activities:
Purchase of property, plant and equipment		1,498			(6,894,071	)		(121,147,340	)		—			(128,039,913	)
Acquisition of intangibles		—			(3,292,490	)		(20,240,336	)		—			(23,532,826	)
Dividends received from associates		74,901,349			—			—			(73,255,637	)		1,645,712
Proceeds from sale of plant, property and equipment		—			—			27,329			—			27,329
Acquisition of business, net of cash acquired		—			—			(3,457,153	)		—			(3,457,153	)
Partial sale of shares of associate company		—			—			633,270			—			633,270
Spin of company		—			(216,626	)		21,216,626			—			21,000,000
Investment in associates companies		(2,213,277	)		(1,404,489	)		3,439,801			—			(177,965	)

Net cash flows provided by (used in) investing activities	Ps.	72,689,570		Ps.	(11,807,676	)	Ps.	(119,527,803	)	Ps.	(73,255,637	)	Ps.	(131,901,546	)

Financing activities:
Bank loans, net		50,879,779			—			5,083,236			—			55,963,015
Acquisition of no controlling interest		(34,970	)		—			(996,079	)		—			(1,031,049	)
Interest paid		(23,379,273	)		(6,200,848	)		(3,250,311	)		—			(32,830,432	)
Repurchase of shares and others		(34,684,520	)		—			241,436			—			(34,443,084	)
Payment of dividends		(36,524,317	)		—			(74,090,920	)		73,255,637			(37,359,600	)
Derivative financial instruments		—			—			(503,444	)		—			(503,444	)

Net cash flows (used in) financing activities	Ps.	(43,743,301	)	Ps.	(6,200,848	)	Ps.	(73,516,082	)	Ps.	73,255,637		Ps.	(50,204,594	)

Net (decrease) increase in cash and cash equivalents		(11,850,729	)		72,940			(6,601,360	)		—			(18,379,149	)
Adjustment to cash flow for exchange rate differences		—			—			(2,934,522	)		—			(2,934,522	)
Cash and cash equivalents at beginning of the period		25,654,313			1,395,096			39,424,294			—			66,473,703

Cash and cash equivalents at end of the period	Ps.	13,803,584		Ps.	1,468,036		Ps.	29,888,412		Ps.	—		Ps.	45,160,032

Condensed consolidating statements of cash flows

For the year ended December 31, 2016


	Parent			Wholly-owned Guarantor Subsidiary			Combined non-guarantor Subsidiaries			Eliminations			Consolidated Total
Operating activities:
Profit before taxes	Ps.	937,247		Ps.	(5,537,427	)	Ps.	28,077,775		Ps.	—		Ps.	23,477,595
Non-cash items		(997,587	)		19,800,396			209,821,118			—			228,623,927
Changes in working capital:		74,520,320			9,130,768			(93,359,195	)		(6,595,361	)		(16,303,468	)

Net cash flows provided by operating activities	Ps.	74,459,980		Ps.	23,393,737		Ps.	144,539,698		Ps.	(6,595,361	)	Ps.	235,798,054

Investing activities:
Purchase of property, plant and equipment		—			(7,860,232	)		(130,846,925	)		—			(138,707,157	)
Acquisition of intangibles		—			(4,947,506	)		(11,369,232	)		—			(16,316,738	)
Dividends received from associates		21,950			—			5,988,938			(270,796	)		5,740,092
Proceeds from sale of plant, property and equipment		20,078			—			95,522			—			115,600
Acquisition of business, net of cash acquired		—			(2,796,254	)		(1,823,813	)		2,796,254			(1,823,813	)
Partial sale of shares of associate company		756,444			—			2,796,254			(3,552,698	)		—
Investment in associates companies		—			663,203			(666,690	)		—			(3,487	)

Net cash flows provided by (used in) investing activities	Ps.	798,472		Ps.	(14,940,789	)	Ps.	(135,825,946	)	Ps.	(1,027,240	)	Ps.	(150,995,503	)

Financing activities:
Bank loans, net		(39,598,698	)		—			(21,792,115	)		—			(61,390,813	)
Acquisition of no controlling interest		—			—			(2,280,278	)		—			(2,280,278	)
Interest paid		(24,826,139	)		(7,972,827	)		(5,922,267	)		6,595,361			(32,125,872	)
Paid-In capital		—			—			(756,444	)		756,444			—
Sale of shares of subsidiaries		—			—			6,323,336			—			6,323,336
Repurchase of shares and others		(7,092,385	)		—			71,138			—			(7,021,247	)
Payment of dividends		(13,437,168	)		—			(643,585	)		270,796			(13,809,957	)
Derivative financial instruments		—			—			(351,213	)		—			(351,213	)

Net cash flows (used in) financing activities	Ps.	(84,954,390	)	Ps.	(7,972,827	)	Ps.	(25,351,428	)	Ps.	7,622,601		Ps.	(110,656,044	)

Net (decrease) increase in cash and cash equivalents		(9,695,938	)		480,121			(16,637,676	)		—			(25,853,493	)
Adjustment to cash flow for exchange rate differences		—			—			3,911,844			—			3,911,844
Cash and cash equivalents at beginning of the period		13,803,584			1,468,036			29,888,412			—			45,160,032

Cash and cash equivalents at end of the period	Ps.	4,107,645		Ps.	1,948,159		Ps.	17,162,579		Ps.	—		Ps.	23,218,383

Condensed consolidating statements of cash flows

For the year ended December 31, 2017

Parent

Wholly-owned
Guarantor
Subsidiary

Combined
non-guarantor
Subsidiaries

Eliminations

Consolidated
Total

Operating activities:

Profit before taxes

Ps.

43,527,320

Ps.

(12,182,970

)

Ps.

35,230,373

Ps.

(9,477,879

)

Ps.

57,096,844

Non-cash items

(17,017,287

)

30,000,109

171,062,158

11,635,563

195,680,543

Changes in working capital:

(18,973,478

)

(9,486

)

(66,062,629

)

50,040,581

(35,005,012

)

Net cash flows provided by operating activities

Ps.

7,536,555

Ps.

17,807,653

Ps.

140,229,902

Ps.

52,198,265

Ps.

217,772,375

Investing activities:

Purchase of property, plant and equipment

16,526

(5,571,410

)

(113,630,253

)

—

(119,185,137

)

Acquisition of intangibles

—

(3,053,345

)

(14,485,196

)

—

(17,538,541

)

Dividends received from associates

21,465,687

970,000

2,385,559

(22,435,687

)

2,385,559

Proceeds from sale of plant, property and equipment

—

133,349

—

133,349

Acquisition of business, net of cash acquired

—

(3,381,505

)

(3,497,288

)

—

(6,878,793

)

Investment in associates companies

—

1,925,898

—

(1,925,898

)

—

Sale of associated company

—

340,040

—

340,040

Net cash flows provided by (used in) investing activities

Ps.

21,482,213

Ps.

(9,110,362

)

Ps.

(128,753,789

)

Ps.

(24,361,585

)

Ps.

(140,743,523

)

Financing activities:

Bank loans, net

13,548,138

—

16,382,838

(57,364,465

)

(27,433,489

)

Acquisition of no controlling interest

—

(11,930

)

—

(11,930

)

Interest paid

(24,009,216

)

(7,092,098

)

(7,187,225

)

7,092,098

(31,196,441

)

Repurchase of shares and others

(1,240,028

)

—

6,657

—

(1,233,371

)

Payment of dividends

(14,406,748

)

—

(24,120,329

)

22,435,687

(16,091,390

)

Derivative financial instruments

—

(71,474

)

—

(71,474

)

Net cash flows used in financing activities

Ps.

(26,107,854

)

Ps.

(7,092,098

)

Ps.

(15,001,463

)

Ps.

(27,836,680

)

Ps.

(76,038,095

)

Net (decrease) increase in cash and cash equivalents

2,910,914

1,605,193

(3,525,350

)

—

990,757

Adjustment to cash flow for exchange rate differences

—

61,333

—

61,333

Cash and cash equivalents at beginning of the period

4,107,645

1,948,159

17,162,579

—

23,218,383

Cash and cash equivalents at end of the period

Ps.

7,018,559

Ps.

3,553,352

Ps.

13,698,562

Ps.

—

Ps.

24,270,473