Supplemental Guarantor Information | 25. Supplemental Guarantor Information Condensed Consolidating Financial Information The following consolidating information presents condensed consolidating statements of financial position as of December 31, 2017 and 2018 and condensed consolidating statements of comprehensive income and cash flows for each of the three years in the period ended December 31, 2018 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 Condensed consolidating statements of financial position As of December 31, 2017 Parent Wholly-owned Subsidiary Combined non-guarantor Eliminations Consolidated 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 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 — — 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 Combined non-guarantor Eliminations Consolidated 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 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 — — 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 Combined non-guarantor Eliminations Consolidated 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 — — 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 — — 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 Combined non-guarantor Eliminations Consolidated 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 — — 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 — — 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 Combined non-guarantor Eliminations Consolidated 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 — — 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 — — (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 Combined non-guarantor Eliminations Consolidated Operating activities: Profit before taxes Ps. 937,247 Ps. (5,537,427 ) Ps. 28,077,775 Ps. — Ps. 23,477,595 Non-cash (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 — — (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 Combined non-guarantor Eliminations Consolidated 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 (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 Combined non-guarantor Eliminations Consolidated 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 (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 |