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, 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
Equity investments at fair value through OCI and other short-term investments		10,303,535		—		48,817,141			—			59,120,676
Accounts receivable and derivative financial instruments		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 financial position

As of December 31, 2018

Parent

Wholly-owned
Guarantor
Subsidiary

Combined
non-guarantor
Subsidiaries

Eliminations

Consolidated
Total

Assets:

Cash and cash equivalents

Ps.

8,335,101

Ps.

1,745,895

Ps.

11,578,966

Ps.

—

Ps.

21,659,962

Equity investments at fair value through OCI and other short-term investments

9,511,368

—

39,504,566

—

49,015,934

Accounts receivable and derivative financial instruments

31,462,176

35,671,582

154,380,710

—

221,514,468

Related parties

199,566,671

1,144,534

560,142,367

(759,589,967

)

1,263,605

Inventories, net

215,055

18,495,502

21,594,805

—

40,305,362

Other current assets

—

1,218,764

14,077,429

—

15,296,193

Property, plant and equipment, Net

1,340,358

23,192,546

615,467,816

—

640,000,720

Investments in associated companies

734,944,344

88,070,845

16,926,615

(836,809,097

)

3,132,707

Intangible assets and other non- current assets, net

4,113,902

26,176,381

406,744,158

—

437,034,441

Total assets

Ps.

989,488,975

Ps.

195,716,049

Ps.

1,840,417,432

Ps.

(1,596,399,064

)

Ps.

1,429,223,392

Liabilities:

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

Ps.

52,827,411

Ps.

—

Ps.

43,403,223

Ps.

—

Ps.

96,230,634

Current liabilities

153,489,868

72,282,238

597,174,025

(452,085,876

)

370,860,255

Long-term debt

456,918,590

—

85,773,229

—

542,691,819

Other non-current liabilities

130,257,461

109,368,210

242,232,897

(308,290,306

)

173,568,262

Total liabilities

Ps.

793,493,330

Ps.

181,650,448

Ps.

968,583,374

Ps.

(760,376,182

)

Ps.

1,183,350,970

Equity attributable to equity holders of the parent

195,995,645

14,065,601

760,485,332

(774,550,933

)

195,995,645

Non-controlling interests

—

111,348,726

(61,471,949

)

49,876,777

Total equity

195,995,645

14,065,601

871,834,058

(836,022,882

)

245,872,422

Total liabilities and equity

Ps.

989,488,975

Ps.

195,716,049

Ps.

1,840,417,432

Ps.

(1,596,399,064

)

Ps.

1,429,223,392

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
Equity investments at fair value		(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	)
Equity investments at fair value		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 comprehensive income

For the year ended December 31, 2018

Parent

Wholly-owned
Guarantor
Subsidiary

Combined
non-guarantor
Subsidiaries

Eliminations

Consolidated
Total

Total revenues

Ps.

170,887,145

Ps.

190,924,413

Ps.

890,427,121

Ps.

(214,030,998

)

Ps.

1,038,207,681

Total cost and operating expenses

129,039,749

183,542,058

799,085,884

(213,017,181

)

898,650,510

Operating income

41,847,396

7,382,355

91,341,237

(1,013,817

)

139,557,171

Interest (expense) income, net

(24,831,538

)

(11,033,069

)

14,757,906

(18,563

)

(21,125,264

)

Foreign currency exchange (loss) gain, net

11,805,283

626,304

(19,693,543

)

—

(7,261,956

)

Other financing cost, net

(4,443,892

)

—

(5,732,424

)

—

(10,176,316

)

Income tax

17,754,010

798,639

27,924,430

—

46,477,079

Equity interest in net income of associated companies

46,101,188

1,325,723

(2,497,059

)

(44,929,585

)

267

Net profit (loss) for year

Ps.

52,724,427

Ps.

(2,497,326

)

Ps.

50,251,687

Ps.

(45,961,965

)

Ps.

54,516,823

Distribution of the net profit (loss) to:

Equity owners of holding company

52,724,427

(2,497,326

)

46,641,696

(44,302,600

)

52,566,197

Non-controlling interest

—

3,609,991

(1,659,365

)

1,950,626

Net profit (loss)

Ps.

52,724,427

Ps.

(2,497,326

)

Ps.

50,251,687

Ps.

(45,961,965

)

Ps.

54,516,823

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

(61,223,458

)

(724,521

)

(64,314,032

)

61,947,979

(64,314,032

)

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

Remeasurement of defined benefit plan, net of income tax effect

652,722

(1,603,145

)

757,278

950,423

757,278

Equity investments at fair value

(3,765,688

)

—

(3,765,688

)

3,765,688

(3,765,688

)

Total other comprehensive income items for the period

Ps.

(64,336,424

)

Ps.

(2,327,666

)

Ps.

(67,322,442

)

Ps.

66,664,090

Ps.

(67,322,442

)

Total comprehensive income for the period

Ps.

(11,611,997

)

Ps.

(4,824,992

)

Ps.

(17,070,755

)

Ps.

20,702,125

Ps.

(12,805,619

)

Comprehensive income for the period attributable to:

Equity holders of the parent

Ps.

(11,611,997

)

Ps.

(4,824,992

)

Ps.

(16,035,363

)

Ps.

20,702,125

Ps.

(11,770,227

)

Non-controlling interests

—

(1,035,392

)

—

(1,035,392

)

Ps.

(11,611,997

)

Ps.

(4,824,992

)

Ps.

(17,070,755

)

Ps.

20,702,125

Ps.

(12,805,619

)

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

Condensed consolidating statements of cash flows

For the year ended December 31, 2018

Parent

Wholly-owned
Guarantor
Subsidiary

Combined
non-guarantor
Subsidiaries

Eliminations

Consolidated
Total

Operating activities:

Profit before taxes

Ps.

70,478,437

Ps.

(1,698,687

)

Ps.

78,176,117

Ps.

(45,961,965

)

Ps.

100,993,902

Non-cash items

(23,099,316

)

20,952,414

149,503,016

39,836,704

187,192,818

Changes in working capital:

(49,040,542

)

(35,329,228

)

(61,332,380

)

105,845,958

(39,856,192

)

Net cash flows provided by operating activities

Ps.

(1,661,421

)

Ps.

(16,075,501

)

Ps.

166,346,753

Ps.

99,720,697

Ps.

248,330,528

Investing activities:

Purchase of property, plant and equipment

(17,709

)

(4,031,228

)

(139,839,096

)

—

(143,888,033

)

Acquisition of intangibles

—

(2,993,373

)

(4,940,274

)

—

(7,933,647

)

Dividends received from associates

24,314,803

—

2,622,237

(24,314,803

)

2,622,237

Proceeds from sale of plant, property and equipment

—

178,532

—

178,532

Acquisition of business, net of cash acquired

—

(310,604

)

—

(310,604

)

Investment in associates companies

—

(5,092,881

)

—

5,092,881

—

Sale of associated company

—

548,484

—

548,484

Net cash flows provided by (used in) investing activities

Ps.

24,297,094

Ps.

(12,117,482

)

Ps.

(141,740,721

)

Ps.

(19,221,922

)

Ps.

(148,783,031

)

Financing activities:

Bank loans, net

24,784,341

—

19,592,788

(78,428,052

)

(34,050,923

)

Acquisition of no controlling interest

—

(115,821

)

—

(115,821

)

Interest paid

(24,802,363

)

26,385,526

(6,066,654

)

(26,385,526

)

(30,869,017

)

Repurchase of shares and others

(514,007

)

—

2,586

—

(511,421

)

Payment of dividends

(20,787,102

)

—

(25,897,494

)

24,314,803

(22,369,793

)

Redemption of hybrid bond

—

(13,440,120

)

—

(13,440,120

)

Net cash flows used in financing activities

Ps.

(21,319,131

)

Ps.

26,385,526

Ps.

(25,924,715

)

Ps.

(80,498,775

)

Ps.

(101,357,095

)

Net (decrease) increase in cash and cash equivalents

1,316,542

(1,807,457

)

(1,318,683

)

—

(1,809,598

)

Adjustment to cash flow for exchange rate differences

—

(800,913

)

—

(800,913

)

Cash and cash equivalents at beginning of the period

7,018,559

3,553,352

13,698,562

—

24,270,473

Cash and cash equivalents at end of the period

Ps.

8,335,101

Ps.

1,745,895

Ps.

11,578,966

Ps.

—

Ps.

21,659,962