América Móvil, S.A.B. de C.V. (AMX) 20-F 2020 FY Annual report (foreign)

As filed with the Securities and Exchange Commission on April 28, 2021

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 20-F

Annual Report Pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934

for the fiscal year ended December 31, 2020

Commission file number: 1-16269

AMÉRICA MÓVIL, S.A.B. DE C.V.

(exact name of registrant as specified in its charter)

America Mobile

(translation of registrant’s name into English)

United Mexican States

(jurisdiction of incorporation)

Lago Zurich 245, Plaza Carso / Edificio Telcel Colonia Ampliación Granada, Miguel Hidalgo 11529 Mexico City, Mexico

(address of principal executive offices)

Daniela Lecuona Torras

Lago Zurich 245, Plaza Carso / Edificio Telcel, Piso 16 Colonia Ampliación Granada, Miguel Hidalgo 11529 Mexico City,

Telephone: (5255) 2581-3700 / Facsimile: (5255) 2581-4422

E-mail: daniela.lecuona@americamovil.com

(name, telephone, e-mail and/or facsimile number and address of company contact person)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading symbol	Name of each exchange on which registered:
A Shares, without par value	AMOV	New York Stock Exchange
L Shares, without par value	AMX	New York Stock Exchange
3.125% Senior Notes Due 2022	AMX22	New York Stock Exchange
3.625% Senior Notes Due 2029	AMX29	New York Stock Exchange
2.875% Senior Notes Due 2030	AMX30	New York Stock Exchange
6.375% Notes Due 2035	AMX35	New York Stock Exchange
6.125% Notes Due 2037	AMX37	New York Stock Exchange
6.125% Senior Notes Due 2040	AMX40	New York Stock Exchange
4.375% Senior Notes Due 2042	AMX42	New York Stock Exchange
4.375% Senior Notes Due 2049	AMX49	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

The number of outstanding shares of each of the registrant’s classes of capital or common stock as of December 31, 2020:

20,578 million	AA Shares
520 million	A Shares
45,764 million	L Shares

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.	Yes	X	No
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.	Yes		No	X
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.	Yes	X	No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this Chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).	Yes	X	No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

   X       Large accelerated filer   Accelerated filer   Non-accelerated filer   Emerging growth company

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

  U.S. GAAP             X       International Financial Reporting Standards as issued by the International Accounting Standards Board   Other    

If “other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17             Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No   X     

4

(See Form 20-F Cross Reference Guide on page 89)
Selected Financial Data	6
PART I: INFORMATION ON THE COMPANY	9
About América Móvil	10
Our Networks	17
Our Competitors	18
Acquisitions, Other Investements and Divestitures	19
Marketing, Sales and Distribution, Customer Services	20
PART II: OPERATING AND FINANCIAL REVIEW AND PROSPECTS	23
Overview	24
Results of Operations	26
Liquidity and Capital Resources	32
PART III: RISK FACTORS	37
PART IV: SHARE OWNERSHIP AND TRADING	49
Major Shareholders	50
Related Party Transactions	51
Dividends	51
Trading Markets	52
Bylaws	52
Purchases of Equity Securities by the Issuer and Affiliated Purchasers	53
Taxation of Shares and ADSs	54
PART V: CORPORATE GOVERNANCE	59
Management	60
Corporate Governance	64
Controls and Procedures	66
Corporate Sustainability Report	68
Code of Ethics	69
PART VI: REGULATION	71
PART VII: ADDITIONAL INFORMATION	87
Employees	88
Legal Proceedings	88
Principal Accountant Fees and Services	89
Additional Information	89
Forward-Looking Statements	90
Form 20-F Cross Reference Guide	91
Signatures	93
PART VIII: CONSOLIDATED FINANCIAL STATEMENTS

5

We present our consolidated financial statements in Mexican pesos. This annual report contains translations of various peso amounts into U.S. dollars at specified rates solely for your convenience. You should not construe these translations as representations that the peso amounts actually represent the U.S. dollar amounts or could be converted into U.S. dollars at the rate indicated. Unless otherwise indicated, we have translated U.S. dollar amounts from pesos at the exchange rate of Ps.19.9487 to U.S.$1.00, which was the rate reported by Banco de México on December 30, 2020, as published in the Official Gazette of the Federation (Diario Oficial de la Federación, or “Official Gazette”).

We have not included earnings or dividends on a per American Depositary Share (“ADS”) basis. Each L Share ADS represents 20 L Shares and each A Share ADS represents 20 A Shares.

6

	FOR THE YEAR ENDED DECEMBER 31,
	2016			2017			2018			2019			2020			2020
	(in millions of Mexican pesos, except share and per share amounts)															(in millions of U.S. dollars, except share and per share amounts)
STATEMENT OF COMPREHENSIVE INCOME DATA:
Operating revenues		Ps.	975,412		Ps.	1,021,634		Ps.	1,038,208		Ps.	1,007,348		Ps.	1,016,887		U.S.	50,975
Operating costs and expenses			865,802			921,490			898,651			852,507			851,532			42,686
Depreciation and amortization			148,526			160,175			155,713			158,915			164,244			8,233
Operating income			109,610			100,144			139,557			154,841			165,355			8,289
Net profit for the year		Ps.	12,079		Ps.	32,155		Ps.	54,517		Ps.	70,313		Ps.	51,027		U.S.	2,559
NET PROFIT ATTRIBUTABLE FOR THE YEAR TO:
Equity holders of the parent		Ps.	8,650		Ps.	29,326		Ps.	52,566		Ps.	67,731		Ps.	46,853		U.S.	2,349
Non-controlling interests			3,429			2,829			1,951			2,582			4,174			210
Net profit for the year		Ps.	12,079		Ps.	32,155		Ps.	54,517		Ps.	70,313		Ps.	51,027		U.S.	2,559
EARNINGS PER SHARE:
Basic		Ps.	0.13		Ps.	0.44		Ps.	0.79		Ps.	1.03			0.71			0.04
Diluted		Ps.	0.13		Ps.	0.44		Ps.	0.79		Ps.	1.03			0.71			0.04
Dividends declared per share (1)		Ps.	0.28		Ps.	0.30		Ps.	0.32		Ps.	0.35		Ps.	0.38		U.S.	0.02
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING (MILLIONS):
Basic			65,693			65,909			66,055			66,016			66,265			-
Diluted			65,693			65,909			66,055			66,016			66,265			-
	AS OF DECEMBER 31,
	2016			2017			2018			2019			2020			2020
	(in millions of Mexican pesos, except share and per share amounts)															(in millions of U.S. dollars, except share and per share amounts)
BALANCE SHEET DATA:
Property, plant and equipment, net		Ps.	701,190		Ps.	676,343		Ps.	640,001		Ps.	639,343		Ps.	722,930		U.S.	36,239
Right of use assets			-			-			-			118,003			101,977			5,112
Total assets			1,515,042			1,486,212			1,429,223			1,531,934			1,625,048			81,463
Short-term debt and current portion of long-term debt			82,607			51,746			96,230			129,172			148,083			7,423
Short-term lease debt												25,895			25,068			1,257
Long-term debt			625,194			646,139			542,692			495,082			480,300			24,077
Long-term lease debt												94,702			84,259			4,224
Capital stock			96,338			96,339			96,338			96,338			96,342			4,829
Total equity			271,024			260,634			245,872			226,907		Ps.	315,118		U.S.	15,797
NUMBER OF OUTSTANDING SHARES (MILLIONS):
AA Shares			20,635			20,602			20,602			20,602			20,578			-
A Shares			592			567			546			531			520			-
L Shares			44,571			44,901			44,887			44,872			45,764			-

⁽¹⁾ Figures for each year provided represent the annual dividend declared at the general shareholders’ meeting that year. For information on dividends paid per share translated into U.S. dollars, see “Share Ownership and Trading—Dividends” under Part IV of this annual report.

7

HISTORY AND CORPORATE INFORMATION

América Móvil, S.A.B. de C.V. (“América Móvil,” “we” or the “Company”) is a Sociedad Anónima Bursátil de Capital Variable organized under the laws of Mexico.

We were established in September 2000 when Teléfonos de México, S.A.B. de C.V. (“Telmex”), a fixed-line Mexican telecommunications operator privatized in 1990, spun off to us its wireless operations in Mexico and other countries. We have made significant acquisitions throughout Latin America, the United States, the Caribbean and Europe, and we have also expanded our businesses organically.

Our principal executive offices are located at Lago Zurich 245, Plaza Carso / Edificio Telcel, Colonia Ampliación Granada, Miguel Hidalgo, 11529, Mexico City, Mexico. Our telephone number at this location is (5255) 2581-3700.

10

BUSINESS OVERVIEW

We provide telecommunications services in 25 countries. We are a leading telecommunications services provider in Latin America, ranking first in wireless, fixed-line, broadband and Pay TV services based on the number of revenue generating units (“RGUs”).

Our largest operations are in Mexico and Brazil, which together account for over half of our total RGUs and where we have the largest market share based on RGUs. We also have operations in 16 other countries in the Americas and seven countries in Central and Eastern Europe as of December 31, 2020. For a list of our principal subsidiaries, see Note 2 a(ii) to our audited consolidated financial statements and “Additional Information—Exhibit 8.1” under Part VII of this annual report.

We intend to build on our position as leaders in integrated telecommunications services in Latin America and the Caribbean, and to grow in other parts of the world by continuing to expand our subscriber base through the development of our existing businesses and strategic acquisitions when opportunities arise. We have developed world-class integrated telecommunications platforms to offer our customers new services and enhanced communications solutions with higher data speed transmissions at lower prices. We continue investing in our networks to increase coverage and implement new technologies to optimize our network capabilities. See “Operating and Financial Review and Prospects—Overview” under Part II of this annual report for a discussion on the seasonality of our business.

11

12

13

KEY PERFORMANCE INDICATORS

We have identified RGUs as a key performance indicator (“KPI”) that helps measure the performance of our operations. The table below includes the number of our wireless subscribers and our fixed RGUs, which together make up the total RGUs, in the countries where we operate. Wireless subscribers consist of the number of prepaid and postpaid subscribers to our wireless services. Fixed RGUs consist of fixed voice, fixed data and Pay TV units (which include customers of our Pay TV services and, separately, of certain other digital services). The figures below reflect total wireless subscribers and fixed RGUs of all our consolidated subsidiaries, without adjustments to reflect our equity interest, in the following reportable segments:

• Mexico Wireless;

• Mexico Fixed;

• Brazil;

• Colombia;

• Southern Cone (Argentina, Chile, Paraguay and Uruguay);

• Andean Region (Ecuador and Peru);

• Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama);

• the Caribbean (the Dominican Republic and Puerto Rico);

• the United States; and

• Europe (Austria, Belarus, Bulgaria, Croatia, Macedonia, Serbia and Slovenia).

	AS OF DECEMBER 31,
	2018		2019		2020
			(in thousands)
WIRELESS SUBSCRIBERS
Mexico Wireless		75,448		76,918		77,789
Brazil		56,416		54,488		63,140
Colombia		29,681		31,104		33,009
Southern Cone		30,971		31,507		30,669
Andean Region		20,344		20,104		18,877
Central America		14,364		15,488		15,044
Caribbean		5,887		6,244		6,422
United States		21,688		20,876		20,682
Europe		21,029		21,296		21,864
Total Wireless Subscribers		275,828		278,025		287,497
FIXED RGUS:
Mexico Fixed		22,337		21,992		21,925
Brazil		35,285		34,048		32,648
Colombia		7,171		7,613		8,318
Southern Cone		2,199		2,514		2,836
Andean Region		1,856		2,049		2,158
Central America		6,465		4,409		4,247
Caribbean		2,546		2,528		2,558
Europe		6,203		6,143		6,050
Total Fixed RGUs		84,062		81,296		80,740
Total RGUs		359,890		359,323		368,237

PRINCIPAL BRANDS

We operate in all of our geographic segments under the Claro brand name, except in Mexico, the United States and Europe, where we principally do business under the brand names listed below.

COUNTRY	PRINCIPAL BRANDS	SERVICES AND PRODUCTS
Mexico	Telcel	Wireless voice
		Wireless data
	Telmex Infinitum	Fixed voice
		Fixed data
United States(1)	TracFone	Wireless voice
		Wireless data
	Straight Talk	Wireless voice
		Wireless data
Europe	A1	Wireless voice
		Wireless data
		Fixed voice
		Fixed data
		Pay TV

(1) We entered into an agreement to sell our United States operations to Verizon Communications Inc. as described under “Acquisitions, Other Investments and Divestitures.” We expect the closing to occur during 2021.

SERVICES AND PRODUCTS

We offer a wide range of services and products that vary by market, including wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and IT services, Pay TV and over-the-top (“OTT”) services.

Wireless Operations

In 2020, our wireless voice and data operations generated revenues of Ps.561.5 billion, representing 55.5% of our consolidated revenues. As of December 31, 2020, our wireless operations represented approximately 78.1% of our total RGUs.

VOICE AND DATA. Our wireless subsidiaries provide voice communication services across the countries in which they operate. We offer international roaming services to our wireless subscribers through a network of cellular service providers with which our wireless subsidiaries have entered into international roaming agreements around the world, and who provide GSM, 3G and 4G-LTE roaming services.

The voice and data plans are either “postpaid,” where the customer is billed monthly for the previous month, or “prepaid,” where the customer pays in advance for a specified volume of use over a specified period. Postpaid plans increased as a percentage of the wireless base from 32.0% in December 2019 to 34.0% as of December 31, 2020, while prepaid plans represented 66.0% as of December 31, 2020.

14

Our wireless voice services are offered under a variety of plans to meet the needs of different market segments. In addition, we often bundle wireless data communications services together with wireless voice services. Our wireless subsidiaries had approximately 287 million wireless voice and data subscribers as of December 31, 2020.

Prepaid customers typically generate lower levels of usage and are often unwilling or financially ineligible to purchase postpaid plans. Our prepaid plans have been instrumental to increase wireless penetration in Latin America and Eastern Europe to levels similar to those of developed markets. Additionally, prepaid plans entail little to no risk of non-payment, as well as lower customer acquisition costs and billing expenses, compared to the average postpaid plan.

In general, our average rates per minute of wireless voice are very competitive for both prepaid and postpaid plans. On average, rates per minute of wireless voice used in 2020 decreased by approximately 27.1% at constant exchange rates relative to 2019. In addition, the plans we offer our retail customers include selective discounts and promotions that reduce the rates our customers pay.

VALUE-ADDED SERVICES. As part of our wireless data business, our subsidiaries offer value-added services that include Internet access, messaging and other wireless entertainment and corporate services through GSM/EDGE, 3G and 4G LTE networks.

Internet services include roaming capability and wireless Internet connectivity for feature phones, smartphones, tablets and laptops, including data transmission, e-mail services, instant messaging, content streaming and interactive applications. For example, in Mexico, our website for our wireless services (www.telcel.com) through Radiomóvil Dipsa, S.A. de C.V (“Telcel”), offers a wide range of services and content such as video, music, games and other applications, which our subscribers can access from mobile devices. In addition, we offer other wireless services, including wireless security services, mobile payment solutions, machine-to-machine services, mobile banking, virtual private network (“VPN”) services, video calls and personal communications services (“PCS”).

Fixed Operations

In 2020, our fixed voice, data, broadband and IT solutions had revenues of Ps.284.6 billion, representing 28.1% of our consolidated revenues. As of December 31, 2020, our fixed operations represented approximately 21.9% of our total RGUs, compared to 22.6% as of December 31, 2019.

VOICE. Our fixed voice services include local, domestic and international long-distance, under a variety of plans to meet the needs of different market segments, specifically tailored to our residential and corporate clients.

DATA. We offer data services, including data centers, data administration and hosting services to our residential and corporate clients under a variety of plans.

BROADBAND. We provide residential broadband access through hybrid fiber-coaxial (“HFC”) or fiber-optic cable. These services are typically bundled with voice services and are competitively priced as a function of the desired or available speed. As a complement to these services, we offer a number of products such as home networking and smart home services.

IT SOLUTIONS. Our subsidiaries provide a number of different IT solutions for small businesses and large corporations. We also provide specific solutions to the industrial, financial, government and tourism sectors, among others.

PAY TV. We offer Pay TV through cable and satellite TV subscriptions to both retail and corporate customers under a variety of plans. As of December 31, 2020, we had approximately 20.1 million Pay TV RGUs, a decrease of approximately 796 thousand Pay TV RGUs from the prior year.

EQUIPMENT, ACCESSORIES AND COMPUTER SALES. Equipment, accessories and computer sales primarily include the sale of handsets, accessories and other equipment.

OTHER SERVICES. Other services include other businesses such as telephone directories, call center services, wireless security services, advertising, media and software development services.

OTT SERVICES. We sell video, audio and other media content that is delivered through the internet directly from the content provider to the viewer or end user. Our most important service is ClaroVideo, an on-demand internet streaming video provider with more than 18,500 content titles sold across all the Latin American and Caribbean markets in which we operate. We offer bundled packages of ClaroVideo, which may include:

Subscription video on demand, providing unlimited access to a catalogue of over 18,500 titles for a fixed monthly subscription fee;

15

Transactional video on demand and electronic sell-through, offering the option to rent or buy new content releases; and

Add-on services such as subscription and other OTT services through a platform payment system, including access to FOX, HBO, Noggin and Paramount+, among others.

We also offer an advertised and unlimited music streaming and downloading service in 16 countries in Latin America and Europe through ClaroMúsica, with access to approximately 50 million titles across all music genres.

Services and Products by Country

The following table is a summary of our principal services rendered and products produced as of December 31, 2020 in the countries in which we operate.

	WIRELESS VOICE, DATA AND VALUE ADDED  SERVICES(1)	FIXED VOICE, BROADBAND, DATA AND IT SERVICES(2)	PAY TV	OTT SERVICES(3)
Argentina	🌑	🌑	🌑	🌑
Austria	🌑	🌑	🌑	🌑
Belarus	🌑	🌑	🌑	🌑
Brazil	🌑	🌑	🌑	🌑
Bulgaria	🌑	🌑	🌑	🌑
Chile	🌑	🌑	🌑	🌑
Colombia	🌑	🌑	🌑	🌑
Costa Rica	🌑	🌑	🌑	🌑
Croatia	🌑	🌑	🌑	🌑
Dominican Republic	🌑	🌑	🌑	🌑
Ecuador	🌑	🌑	🌑	🌑
El Salvador	🌑	🌑	🌑	🌑
Guatemala	🌑	🌑	🌑	🌑
Honduras	🌑	🌑	🌑	🌑
Macedonia	🌑	🌑	🌑	🌑
Mexico	🌑	🌑		🌑 (4)
Nicaragua	🌑	🌑	🌑	🌑
Panama	🌑	🌑	🌑	🌑
Paraguay	🌑	🌑	🌑	🌑
Peru	🌑	🌑	🌑	🌑
Puerto Rico	🌑	🌑	🌑	🌑
Serbia	🌑			🌑
Slovenia	🌑	🌑	🌑	🌑
Uruguay	🌑			🌑
United States (5)	🌑

⁽¹⁾  Includes voice communication and international roaming services, interconnection and termination services, SMS, MMS, e-mail, mobile browsing, entertainment and gaming applications.

⁽²⁾  Includes local calls, national and international long distance.

⁽³⁾  Includes ClaroVideo and ClaroMúsica.

⁽⁴⁾  Services provided by non-concessionaire subsidiaries.

⁽⁵⁾  We entered into an agreement to sell our United States operations to Verizon Communications Inc. as described under “Acquisitions, Other Investments and Divestitures.” We expect the closing to occur during 2021.

16

Our networks are one of our main competitive advantages. Today, we own and operate one of the largest integrated platforms based on our covered population across 17 countries in Latin America and are expanding our network in Europe.

INFRASTRUCTURE

For the year ended December 31, 2020, our capital expenditures totaled Ps.129.6 billion, which allowed us to increase our network, to expand our capacity and to upgrade our systems to operate with the latest technologies. With fully convergent platforms, we are able to deliver high-quality voice, video and data products.

As of December 31, 2020, the main components of our infrastructure were comprised of:

• Cell sites : 100,122 sites with 2G, 3G and 4G technologies across Latin America and Europe. Tower space for our cell sites is a combination of towers we own and tower spaces leased from third parties. Additionally, we have been expanding our coverage and improving quality and speed with a number of street cells and indoor solutions. Our Board of Directors has approved a plan to spin off our towers and related passive infrastructure in Latin America into an independent Company. See “Acquisitions, Other Investments and Divestitures.”

• Fiber-optic network: More than 1,081 thousand km. Our network passed approximately 81 million homes.

• Submarine cable system: Capacity of more than 189 thousand km in submarine cable, including the AM-1 submarine cable that extends 17,500 km and connects the United States to Central and South America with 11 landing points and provides international connectivity to all of our subsidiaries in these geographic areas.

• Satellites: Six. Star One S.A. (“Star One”) has the most extensive satellite system in Latin America, with a fleet that covers the United States, Mexico, Central America and South America. We use these satellites to supply capacity for DTH services for Claro TV throughout Brazil and in other DTH Operations, as well as cellular backhaul, video broadcast and corporate data networks. In 2015 and 2016, we launched the Star One D1 and the Star One C4 to replace two limited capacity satellites.

• Data centers: 31. We use our data centers to manage a number of cloud solutions, such as Infrastructure as a Service (“IAAS”), Software as a Service (“SAAS”), security solutions and unified communications.

In the United States, we do not own any wireless telecommunications facilities or hold any wireless spectrum licenses. Instead, we purchase airtime through agreements with wireless service providers and resell airtime to customers. Through these agreements, we have a nationwide “virtual” network, covering almost all areas in which wireless services are available.

TECHNOLOGY

Our primary wireless networks use GSM/EDGE, 3G and 4G LTE technologies, which we offer in most of the countries where we operate. We aim to increase the speed of transmission of our data services and have been expanding our 3G and 4G LTE coverage. We have begun our 5G rollout in some countries.

We transmit wireless calls and data through radio frequencies that we use under spectrum licenses. Spectrum is a limited resource, and, as a result, we may face spectrum and capacity constraints on our wireless network. We continue to invest significant capital in expanding our network capacity and reach and to address spectrum and capacity constraints on a market-by-market basis.

The table below presents a summary of the population covered by our network, by country, as of December 31, 2020.

GENERATION TECHNOLOGY*
	GSM			UMTS			LTE
	(% of covered population)
Argentina		99	%		99	%		98	%
Austria		100	%		97	%		98	%
Belarus		100	%		100	%		-
Brazil		94	%		95	%		87	%
Bulgaria		100	%		100	%		99	%
Chile		97	%		97	%		98	%
Colombia		91	%		80	%		72	%
Costa Rica		85	%		79	%		75	%
Croatia		99	%		99	%		99	%
Dominican Republic		100	%		99	%		97	%
Ecuador		96	%		80	%		76	%
El Salvador		91	%		81	%		66	%
Guatemala		89	%		88	%		82	%
Honduras		89	%		82	%		58	%
Macedonia		100	%		100	%		99	%
Mexico		94	%		95	%		91	%
Nicaragua		76	%		72	%		55	%
Panama		82	%		88	%		82	%
Paraguay		76	%		74	%		70	%
Peru		88	%		84	%		83	%
Puerto Rico		82	%		97	%		98	%
Serbia		99	%		98	%		98	%
Slovenia		100	%		100	%		99	%
Uruguay		96	%		91	%		82	%

* As of December 31, 2020, our 5G network covered the following percentages of popula- tion in the places indicated: 22.7% in Austria, 16.4% in Brazil and 10% in Puerto Rico.

17

We operate in an intensely competitive industry. Competitive factors within our industry include pricing, brand recognition, service and product offerings, customer experience, network coverage and quality, development and deployment of technologies, availability of additional spectrum licenses and regulatory developments.

Our principal competitors differ, depending on the geographical market and the types of service we offer. We compete against other providers, of wireless, broadband and Pay TV that operate on a multi-national level, such as AT&T Inc., Teléfonica and Millicom, as well as various providers that operate on a nationwide level, such as Telecom Argentina in Argentina and Telecom Italia in Brazil. Competition remains intense as a result of saturation in the fixed and wireless market, increased network investment by our competitors, the development and deployment of new technologies, the introduction of new products and services, new market entrants, the availability of additional spectrum, both licensed and unlicensed, and regulatory changes.

The effects of competition on our subsidiaries depend, in part, on the size, service offerings, financial strength and business strategies of their competitors, regulatory developments and the general economic and business climate in the countries in which they operate, including demand growth, interest rates, inflation and exchange rates. The effects could include loss of market share and pressure to reduce rates. See “Regulation” under Part VI and “Risk Factors” under Part III of this annual report.

18

Geographic diversification has been a key to our financial success, as it has provided for greater stability in our cash flow and profitability and has contributed to our strong credit ratings. In recent years, we have been evaluating the expansion of our operations to regions outside of Latin America. We believe that Europe and other areas beyond Latin America present opportunities for investment in the telecommunications sector that could benefit us and our shareholders over the long term.

We continue to seek ways to optimize our portfolio, including by finding investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often have several possible acquisitions under consideration. We may pursue opportunities in Latin America or in other areas in the world. Some of the assets that we acquire may require significant funding for capital expenditures. We can give no assurance as to the extent, timing or cost of such investments. We also periodically evaluate opportunities for dispositions, in particular for businesses and in geographies that we no longer consider strategic. Recent developments related to acquisitions, other investments and divestitures include:

• On September 13, 2020, we entered into an agreement to sell our wholly-owned subsidiary TracFone Wireless, Inc. to Verizon Communications Inc. The consideration for the transaction will include U.S.$3,125 million in cash and U.S.$3,125 million in Verizon common stock (determined based on the pre-closing trading price of Verizon common stock, but subject to a collar on the number of shares, whereby the number of shares constituting the stock consideration will be no less than 47,124,445 and no greater than 57,596,545), subject to customary adjustments, at closing. The agreement also includes up to an additional $650 million in future cash consideration related to the achievement of certain performance measures and other commercial arrangements. The closing of the transaction is subject to customary conditions, including obtaining regulatory approval. Approvals from the Federal Communications Commission and California Public Utilities Commission are still pending. We expect the closing to occur during the second half of 2021.

• In September 2020, we terminated our January 24, 2019 agreement to purchase 99.3% of Telefónica Móviles El Salvador, S.A. de C.V. after careful consideration of the conditions to obtaining regulatory approval.

• In December 2020, our Brazilian subsidiary, Claro S.A. (“Claro”), together with two other offerors, won a competitive bid to acquire the mobile business owned by Oi Group in Brazil. Pursuant to the transaction, Claro will pay R$3.6 billion for 32% of Oi Group’s mobile business and approximately 4.7 thousand mobile access sites (representing 32% of Oi Group’s mobile business access sites). Claro also committed to enter into long term agreements with Oi Group for the supply of data transmission capacity. The closing of the transaction is subject to customary conditions, including obtaining regulatory approval, and we expect the closing to occur during 2021.

• In February 2021, our Board of Directors approved a plan to spin off our telecommunications towers and other related passive infrastructure in Latin America. This operation will maximize the infrastructure’s value, as the resulting entities will be independent from the Company, with their own management and personnel, exclusively focused on developing, building and sharing telecommunications towers for wireless services. We expect to enter into lease agreements with the new entities under which we will continue using the tower space to provide wireless services. The execution of the reorganization plan will comply with applicable requirements under the laws of each applicable jurisdiction, and will be subject to obtaining required regulatory approvals. See note 25 to our audited consolidated financial statements.

For additional information on our acquisitions and investments, see note 12 to our audited consolidated financial statements included in this annual report.

19

MARKETING

We advertise our services and products through different channels with consistent and distinct branding and targeted marketing. We advertise via print, radio, television, digital media, sports event sponsorships and other outdoor advertising campaigns. In 2020, our efforts were mainly focused on promoting our 4.5G LTE services, leveraging the speed and quality of our networks and our fixed bundled offers, which compete on broadband speed and premium content.

We build on the strength of our well-recognized brand names to increase consumer awareness and customer loyalty. Building brand recognition is crucial for our business, and we have managed to position our brands as those of a premium carrier in most countries where we operate. According to the 2020 Brand Finance Telecom 150 report, Telcel is among the top ten strongest brands in the telecom sector which evaluates marketing investment, customer perception, staff satisfaction and corporate reputation. Also, Claro was named the most valuable brand in the Latin America region. BrandZ’s Top 50 Most Valuable Latin American Brands 2020 ranked Telcel among the top five brands in Latin America. In the same year, BrandZ also named Telcel and Claro as two of the highest-ranked telecom brands in Latin America. In addition, a year-end 2020 study by Austrian Brand Monitor found that A1, the brand name behind Telekom Austria, ranked number one in the Austrian telecommunications market for brand awareness, as well as for brand perception as a premium brand.

20

SALES AND DISTRIBUTION

Our extensive sales and distribution channels help us attract new customers and develop new business opportunities. We primarily sell our services and products through a network of retailers and service centers for retail customers and a dedicated sales force for corporate customers, with more than 490,000 points of sale and more than 2,900 customer service centers. Our subsidiaries also sell their services and products online.

CUSTOMER SERVICE

We give priority to providing our customers with quality customer care and support. We focus our efforts on constantly improving our customers’ experience by leveraging our commercial offerings and our sales and distribution networks. Customers may make inquiries by calling a toll-free telephone number, accessing our subsidiaries’ web sites and social media accounts or visiting one of the customer sales and service centers located throughout the countries we serve.

21

22

23

INTRODUCTION

Effects of the COVID-19 Pandemic

The unprecedented health crisis arising from the spread of the COVID-19 pandemic has resulted in a severe global economic downturn and has caused significant volatility, uncertainty, and disruption. We are closely monitoring the evolution of the COVID-19 pandemic in the countries where we operate to take preventive measures to ensure the continuity of operations and safeguard the health and safety of our personnel and customers. Based on the information available as of the date of this annual report, below is a summary of the main effects of the COVID-19 pandemic on our business and results of operations:

• During most of the year, practically all our region of operations was subject to lockdown and other measures implemented to control the spread of COVID-19. These restrictions disrupted commercial activities, resulted in the closure of shops and customer-care centers and imposed constraints on the mobility of our clients. They also disrupted our supply chain for handsets and other equipment. During the second quarter of the year, we disconnected five million wireless clients, including 4.6 million prepaid clients, that were unable to recharge their accounts, and we were unable to disconnect service for a significant amount of other customers as a result of governmental restrictions prohibiting disconnection due to non-payment during the pandemic. As a result, our uncollectible accounts increased temporarily before stabilizing again at pre-pandemic levels. The impact on prepaid revenues was stronger in countries where prepaid services are more prevalent, including Mexico and the Dominican Republic. The impact of COVID-19 was more limited on our fixed-line platform.

• During the second half of the year, the economy recovered throughout most of our regions of operations, with confidence levels increasing in November following the U.S. presidential election and, shortly thereafter, the announcements of the approval of COVID-19 vaccines. Latin American currencies, which had depreciated sharply against the U.S. dollar as the pandemic spread, strengthened notably, with the Mexican, Colombian and Chilean pesos appreciating versus the dollar during the fourth quarter. Other currencies also did well during the fourth quarter, including the euro and the Brazilian real.

Segments

We have operations in 25 countries, which are aggregated for financial reporting purposes into ten reportable segments. Our operations in Mexico are presented in two segments—Mexico Wireless and Mexico Fixed, which consist principally of Telcel and Telmex, respectively. Our headquarters operations are allocated to the Mexico Wireless segment. Financial information about our segments is presented in

Note 23 to our audited consolidated financial statements included in this annual report.

The factors that drive our financial performance differ in the various countries where we operate, including subscriber acquisition costs, the competitive landscape, the regulatory environment, economic factors and interconnection rates, among others. Accordingly, our results of operations in each period reflect a combination of these effects on our different segments.

Constant Currency Presentation

Our financial statements are presented in Mexican pesos, but our operations outside Mexico account for a significant portion of our revenues. Currency variations between the Mexican peso and the currencies of our non-Mexican subsidiaries, especially the Euro, U.S. dollar, Brazilian real, Colombian and Argentine peso, affect our results of operations as reported in Mexican pesos. In the following discussion regarding our operating results, we include a discussion of the change in the different components of our revenues between periods at constant exchange rates, i.e., using the same exchange rate to translate the local-currency results of our non-Mexican operations for both periods. We believe that this additional information helps investors better understand the performance of our non-Mexican operations and their contribution to our consolidated results.

Effects of Exchange Rates

Our results of operations are affected by changes in currency exchange rates. In 2020 compared to 2019, the Mexican peso was weaker against some of our operating currencies, including the U.S. Dollar and the Euro.

Since most of our debt is issued by América Móvil out of Mexico, to the extent that our functional currency, the Mexican peso, appreciates or depreciates against the currencies in which our indebtedness is denominated, we may incur foreign exchange gains or losses that are recorded as other comprehensive income in our consolidated statements of financial position.

Changes in exchange rates also affect the fair value of derivative financial instruments that we use to manage our currency-risk exposure, which are generally not accounted for as hedging instruments. In 2020, the Mexican peso weakened against the currencies in which most of our indebtedness is denominated, and we recorded net foreign exchange losses of Ps.65.4 billion and net fair value gains on derivatives of Ps.12.4 billion. In 2019, the Mexican peso strengthened against the currencies in which most of our indebtedness is denominated, and we recorded net foreign exchange gains of Ps.5.2 billion and net fair value gains on derivatives of Ps.4.4 billion. See Note 7 to our audited consolidated financial statements included in this annual report.

24

EFFECTS OF REGULATION

We operate in a regulated industry. Our results of operations and financial condition have been, and will continue to be, affected by regulatory actions and changes. Significant regulatory developments are presented in more detail in “Regulation” under Part VI and “Risk Factors” under Part III of this annual report.

Comparison of Results of Operations Between 2019 and 2018

Discussions of year-over-year comparisons between 2019 and 2018 that are not included in this report can be found in under Part II, Operating and Financial Review and Prospects of our Form 20-F for the fiscal year ended December 31, 2019.

COMPOSITION OF OPERATING REVENUES

In 2020, our total operating revenues were Ps.1,017 billion.

Revenues from wireless and fixed voice services primarily include charges from monthly subscriptions, usage charges billed to customers and usage charges billed to other service providers for calls completed on our network. The primary drivers of revenues from monthly subscription charges are the number of total RGUs and the prices of our service packages. The primary driver of revenues from usage charges (airtime, international and long-distance calls and interconnection costs) is traffic, which is represented by the number of total RGUs and their average usage.

Revenues from wireless and fixed data services primarily include charges for data, cloud, internet and OTT services and the usage from our data centers. In addition, revenues from value-added services and IT solutions to corporate clients contribute to our results for wireless and fixed data services, respectively. Revenues from IT solutions to our corporate clients mainly consist of revenues from installing and leasing dedicated links and revenues from VPN services.

Pay TV revenues consist primarily of charges from subscription services, additional programming, including on-demand programming and advertising.

Equipment, accessories and computer sales revenues primarily include revenues from the sale of handsets, accessories and other equipment such as office equipment, household appliances and electronics. Most of our sales in handsets are driven by the number of new customers and contract renewals.

Other services primarily include revenues from other businesses, such as advertising and news companies, entertainment content distribution, telephone directories, call

center services, wireless security services, network infrastructure services and a software development company.

Seasonality of our Business

Our business is subject to a certain degree of seasonality, characterized by a higher number of new customers during the fourth quarter of each year. We believe this seasonality is mainly driven by the Christmas shopping season. Revenue also tends to decrease during the months of August and September, when family expenses shift towards school supplies in many of the countries in which we operate, mainly Mexico.

General Trends Affecting Operating Results

Our results of operations in 2020 reflected several continuing long-term trends, including:

• intense competition, with growing costs for marketing and subscriber acquisition and retention, as well as declining customer prices;

• developments in the telecommunications regulatory environment;

• growing demand for data services over fixed and wireless networks, as well as for smartphones and devices with data service capabilities;

• declining demand for voice services; and

• growing operating costs reflecting, among other things, higher costs for Pay TV, customer care services and managing larger and more complex networks.

These trends are broadly characteristic of our businesses in all regions in recent years, and they have affected comparable telecommunications providers as well. Our performance in recent years has also been affected by ongoing regulatory changes in Mexico.

25

CONSOLIDATED RESULTS OF OPERATIONS FOR 2020 AND 2019

Operating Revenues

Total operating revenues for 2020 increased by 0.9%, or Ps.9.5 billion, over 2019. At constant exchange rates, total operating revenues for 2020 decreased by 0.4% over 2019. This decrease principally reflects a decrease in equipment sales and handset financing revenues as well as a decrease in Pay TV services revenues.

SERVICE REVENUES. Revenues services for 2020 increased by 2.8%, or Ps.23.5 billion, over 2019. At constant exchange rates, revenues services for 2020 increased by 1.7% over 2019. This increase principally reflects increases in revenues from our mobile services (both prepaid and postpaid), fixed broadband and corporate networks, which were partially offset by a decrease in revenues from our Pay TV services in Brazil.

SALES OF EQUIPMENT, ACCESSORIES AND COMPUTERS. Sales of equipment, accessories and computer sales revenues for 2020 decreased by 8.1%, or Ps.14.0 billion, over 2019. At constant exchange rates, revenues from sales of equipment, accessories and computer sales for 2020 decreased by 10.7% over 2019. This decrease principally reflects lower sales of smartphones, data-enabled devices and accessories.

Operating Costs and Expenses

COST OF SALES. Cost of sales was Ps.167.5 for 2020, a decrease of 4.0% from Ps.174.5 billion in 2019. At constant exchange rates, cost of sales for 2020 decreased by 8.0% over 2019. This decrease principally reflects lower sales of higher-end smartphones and handset financing plans.

COST OF SERVICES. Cost of services was Ps.302.9 for 2020, an increase of 1.9% from 297.2 billion in 2019. At constant exchange rates, cost of services for 2020 decreased by 0.1% over 2019. We were able to maintain low cost of services in significant part because of the success of our cost savings program.

COMMERCIAL, ADMINISTRATIVE AND GENERAL EXPENSES. Commercial, administrative and general expenses for 2020 decreased by 1.8%, or Ps.3.9 billion, over 2019. As a percentage of operating revenues, commercial, administrative and general expenses were 20.9% for 2020, as compared to 21.4% for 2019. At constant exchange rates, commercial, administrative and general expenses for 2020 decreased by 2.7% over 2019. This decrease principally reflects the success of our corporate cost savings program and better allocation of marketing, advertising, and sales resources, and an increase in the proportion of online sales as compared to sales in physical stores due to COVID-19 restrictions.

OTHER EXPENSES. Other expenses for 2020 decreased by Ps.1.1 billion over 2019.

DEPRECIATION AND AMORTIZATION. Depreciation and amortization for 2020 increased by 3.4%, or Ps.5.3 billion, over 2019. As a percentage of operating revenues, depreciation and amortization was 16.2% for 2020, as compared to 15.8% for 2019. At constant exchange rates, depreciation and amortization for 2020 increased by 2.1% over 2019. This increase principally reflects depreciation and amortization expenses of Nextel Telecomunicações Ltda. And its subsidiaries (“Nextel Brazil”) in 2020, which were not incurred in 2019 before our acquisition of Nextel Brazil.

Operating Income

Operating income for 2020 increased by 6.8%, or Ps.10.5 billion, over 2019. Operating margin (operating income as a percentage of operating revenues) was 16.3% for 2020, as compared to 15.4% for 2019.

Non-Operating Items

NET INTEREST EXPENSE. Net interest expense (interest expense less interest income) for 2020 increased by 6.2%, or Ps.2.0 billion, over 2019. This increase principally reflects an increase in interest expense on lease liabilities and a decrease in interest income in Brazil.

FOREIGN CURRENCY EXCHANGE LOSSES, NET. We recorded a net foreign currency exchange losses of Ps.65.4 billion for 2020, compared to our net foreign currency exchange gain of Ps.5.2 billion for 2019. The loss principally reflects the appreciation of some of the currencies in which our indebtedness is denominated, particularly the Euro and the Dollar.

VALUATION OF DERIVATIVES, INTEREST COST FROM LABOR OBLIGATIONS AND OTHER FINANCIAL ITEMS, NET. We recorded a net gain of Ps.1.3 billion for 2020 on the valuation of derivatives, interest cost from labor obligations and other financial items, net, compared to a net loss of Ps.7.1 billion for 2019. The change in 2020 principally reflects a gain on hedging instruments as a result of the appreciation of some of the currencies in which our indedebtedness is denominated. See Note 22 to our audited consolidated financial statements included in this annual report.

INCOME TAX. Our income tax expense for 2020 decreased by 67.9%, or Ps.34.7 billion, over 2019. This decrease principally reflects lower profit before income due to a foreign exchange loss in 2020.

Our effective corporate income tax rate as a percentage of profit before income tax was 24.3% for 2020, compared to 42.1% for 2019. This rate differed from the Mexican statutory rate of 30% and changed year over year principally as a

26

result of the reversal of certain tax expenses in Brazil, which lowered our income tax expense and our effective corporate income tax for 2020.

Net Profit

We recorded a net profit of Ps.51.0 billion for 2020, a decrease of 27.4%, or Ps.19.3 billion, over 2019.

SEGMENT RESULTS OF OPERATIONS

We discuss below the operating results of each reportable segment. Notes 2. z) and 23 to our audited consolidated financial statements describe how we translate the financial statements of our non-Mexican subsidiaries. Exchange rate changes between the Mexican peso and the currencies in which our subsidiaries operate affect our reported results in Mexican pesos and the comparability of reported results between periods.

The following table sets forth the exchange rates used to translate the results of our significant non-Mexican operations, as expressed in Mexican pesos per foreign currency unit, and the change from the rate used in the prior period indicated. The U.S. dollar is our functional currency in several of the countries or territories in which we operate in addition to the United States, including Ecuador, Puerto Rico, Panama and El Salvador.

MEXICAN PESOS PER FOREIGN CURRENCY   UNIT (AVERAGE FOR THE PERIOD)
	2019	2019/2020 % CHANGE	2020
Brazilian real	4.8907	(14.4)	4.1850
Colombian peso	0.0059	0.00	0.0058
Argentine peso	0.4110	(25.3)	0.3070
U.S. dollar	19.2641	11.5	21.4859
Euro	21.5642	13.7	24.5080

The tables below set forth operating revenues and operating income for each of our segments for the years indicated.

	YEAR ENDED DECEMBER 31, 2020
	OPERATING REVENUES				OPERATING INCOME
	(in millions of Mexican pesos)		(as a% of to- tal operating revenues)		(in millions of Mexican pesos)		(as a% of total operat- ing income)
Mexico Wireless	Ps.	232,242		22.8%	Ps.	70,852		42.8%
Mexico Fixed		91,589		9.0		11,204		6.8
Brazil		168,073		16.5		25,204		15.2
Colombia		77,635		7.6		15,112		9.1
Southern Cone		56,705		5.6		1,877		1.1
Andean Region		53,935		5.3		8,699		5.3
Central America		48,195		4.7		4,005		2.4
United States		177,179		17.4		10,579		6.4
Caribbean		38,624		3.8		6,701		4.1
Europe		111,472		11.0		13,160		8.0
Eliminations	Ps.	(38,762)		(3.7)		(2,038)		(1.1)
Total	Ps.	1,016,887		100%	Ps.	165,355		100%

	YEAR ENDED DECEMBER 31, 2019
	OPERATING REVENUES				OPERATING INCOME
	(in millions of Mexican pesos)		(as a% of to- tal operating revenues)		(in millions of Mexican pesos)		(as a% of total operat- ing income)
Mexico Wireless	Ps.	237,840		23.6%	Ps.	67,694		43.7%
Mexico Fixed		96,037		9.5		9,732		6.3
Brazil		181,778		18.0		28,847		18.6
Colombia		74,636		7.4		15,325		9.9
Southern Cone		65,272		6.5		4,008		2.6
Andean Region		55,533		5.5		8,023		5.2
Central America		46,734		4.6		5,712		3.7
United States		155,864		15.5		2,968		1.9
Caribbean		35,718		3.5		5,741		3.7
Europe		98,420		9.8		8,688		5.6
Eliminations		(40,484)		(3.9)		(1,897)		(1.2)
Total	Ps.	1,007,348		100%	Ps.	154,841		100%

27

INTERPERIOD SEGMENT COMPARISONS

The following discussion addresses the financial performance of each of our reportable segments by comparing results for 2020 and 2019. In the year-to-year comparisons for each segment, we include percentage changes in operating revenues, percentage changes in operating income and operating margin (operating income as a percentage of operating revenues), in each case calculated based on the segment financial information presented in Note 23 to our audited consolidated financial statements, which is prepared in accordance with IFRS.

Each reportable segment includes all income, cost and expense eliminations that occurred between subsidiaries within the reportable segment. The Mexico Wireless segment also includes corporate income, costs and expenses.

Comparisons in the following discussion are calculated using figures in Mexican pesos. We also include percentage changes in adjusted segment operating revenues, adjusted segment operating income and adjusted operating margin (adjusted operating income as a percentage of adjusted operating revenues). The adjustments eliminate (i) certain intersegment transactions, (ii) for our non-Mexican segments, the effects of exchange rate changes and (iii) for the Mexican Wireless segment only, revenues and costs of group corporate activities and other businesses that are allocated to the Mexico Wireless segment.

Discussions of year-over-year comparisons between 2019 and 2018 that are not included in this report can be found under Part II, Operating and Financial Review and Prospects of our Form 20-F for the fiscal year ended December 31, 2019.

2020 COMPARED TO 2019

Mexico Wireless

The number of prepaid wireless subscribers for 2020 increased by 1.1% over 2019, and the number of postpaid wireless subscribers increased by 1.3%, resulting in an increase in the total number of wireless subscribers in Mexico of 1.1%, or 871 thousand, to approximately 77.8 million as of December 31, 2020.

Segment operating revenues for 2020 decreased by 2.4% over 2019. Adjusted segment operating revenues for 2020 decreased by 2.4% over 2019. This decrease in segment operating revenues principally reflects a decrease in equipment sales and handset financing plans.

Segment operating income for 2020 increased by 4.7% over 2019. Adjusted segment operating income for 2020 increased by 1.8% over 2019.

Segment operating margin was 30.5% in 2020, as compared to 28.5% in 2019. Adjusted segment operating margin for this segment was 36.7% in 2020, as compared to 35.1% in 2019. This increase in segment operating margin for 2020 principally reflects the success of our corporate cost savings program in operations and lower networks and maintenance costs, which we successfully continue to implement without affecting the quality of our services and coverage.

Mexico Fixed

The number of fixed voice RGUs in Mexico for 2020 decreased by 3.1% over 2019, and the number of broadband RGUs in Mexico increased by 3.3%, resulting in a decrease in total fixed RGUs in Mexico of 0.3% over 2019, or 67 thousand, to approximately 21.9 million as of December 31, 2020.

Segment operating revenues for 2020 decreased by 4.6% over 2019. Adjusted segment operating revenues for 2020 decreased by 7.4% over 2019. This decrease in segment operating revenues principally reflects a decrease in fixed voice revenues of 4.9% and corporate networks services by 0.6%, which was partially offset by higher revenues from broadband.

Segment operating income for 2020 increased by 15.1% over 2019. Adjusted segment operating income for 2020 decreased by 33.6% over 2019. This decrease principally reflects a decrease in services provided, increases in the contractual salary of our employees, higher information technology and customer service costs.

Segment operating margin was 12.2% in 2020, as compared to 10.1% in 2019. Adjusted segment operating margin was 1.8% in 2020, as compared to 2.5% in 2019. The decrease in segment operating margin for 2020 principally reflects reductions in equipment sales and lower revenues from voice services, partially offset by a decrease in segment depreciation expenses.

Brazil

The number of prepaid wireless subscribers for 2020 increased by 1.9% over 2019, and the number of postpaid wireless subscribers increased by 29.6%, resulting in an increase in the total number of wireless subscribers in Brazil of 15.9%, or 8.6 million, to approximately 63 million as of December 31, 2020. The increase in the number of postpaid wireless subscribers is due primarily to commercial efforts aimed at converting prepaid subscribers to postpaid subscribers and additional subscribers as a result of the Nextel Brazil’s acquisition. The number of fixed voice RGUs for 2020 decreased by 8.4% over 2019, the number of broadband RGUs increased by 2.8%, and the number of Pay TV RGUs decreased by 5.6%, resulting in a decrease in total fixed RGUs in Brazil of 4.1%, or 1.4 million, to approximately 32.6 million as of December 31, 2020.

28

Segment operating revenues for 2020 decreased by 7.5% over 2019. Adjusted segment operating revenues for 2020 increased by 1.6% over 2019. This increase in segment operating revenues principally reflects higher mobile data and fixed data revenues in 2020 over 2019. The increase in mobile data revenues in 2020 principally reflects the increased usage of social networking platforms, cloud services and other content, and fixed data revenues increased principally due to an increase in broadband RGUs, which were, in each case, partially offset by a decrease in Pay TV revenues.

Segment operating income for 2020 decreased by 12.6% over 2019. Adjusted segment operating income for 2020 decreased by 0.5% over 2019.

Segment operating margin was 15.0% in 2020, as compared to 15.9% in 2019. Adjusted segment operating margin was 14.1% in 2020, as compared to 15.1% in 2019. This decrease in segment operating margin for 2020 principally reflects a higher amortization and depreciation expense as a result of changes to the useful life of certain assets in Brazil, partially offset by improved cost management as a result of our cost savings program.

Colombia

The number of prepaid wireless subscribers for 2020 increased by 6.3% over 2019, and the number of postpaid wireless subscribers increased by 5.6%, resulting in an increase in the total number of wireless subscribers in Colombia of 6.1%, or 1.9 million, to approximately 33.0 million as of December 31, 2020. The number of fixed voice RGUs for 2020 increased by 7.9% over 2019, the number of broadband RGUs increased by 14.3% and the number of Pay TV RGUs increased by 5.2%, resulting in an increase in total fixed RGUs in Colombia of 9.3%, or 705 thousand, to approximately 8.3 million as of December 31, 2020.

Segment operating revenues for 2020 increased by 4.0% over 2019. Adjusted segment operating revenues for 2020 increased by 5.1% over 2019. This increase in segment operating revenues principally reflects increases in fixed data revenues, mobile data revenues, both in prepaid and postpaid mobile data, and Pay TV revenues. The increase in segment operating revenues was partially offset by a decrease in long distance revenues.

Segment operating income for 2020 decreased by 1.4% over 2019. Adjusted segment operating income for 2020 increased by 1.4% over 2019.

Segment operating margin was 19.5% in 2020, as compared to 20.5% in 2019. Adjusted segment operating margin was 24.7% in 2020, as compared to 25.6% in 2019. This decrease

is due to an increase in amortization expenses caused by increased investments in spectrum and submarine cables.

Southern Cone - Argentina, Chile, Paraguay and Uruguay

The number of prepaid wireless subscribers for 2020 decreased by 5.1% over 2019, and the number of postpaid wireless subscribers increased by 1.6%, resulting in a decrease in the total number of wireless subscribers in our Southern Cone segment of 2.7%, or 838 thousand, to approximately 30.6 million as of December 31, 2020. The number of fixed voice RGUs for 2020 increased by 17.4% over 2019, the number of broadband RGUs increased by 29.8%, and the number of Pay TV RGUs decreased by 6.3%, resulting in an increase in total fixed RGUs in our Southern Cone segment of 12.8%, or 322 thousand, to approximately 2.8 million as of December 31, 2020.

Segment operating revenues for 2020 decreased by 13.1% over 2019. Adjusted segment operating revenues for 2020 decreased by 8.3% over 2019. This decrease principally reflects a decrease in adjusted operating revenues in Argentina, Paraguay and Uruguay. In Argentina, we experienced decrease in revenues from prepaid and postpaid wireless voice, corporate networks, and fixed voice, which were attributable to adverse economic conditions and which were partially offset by an increase in broadband. In Chile, we experienced a decline in wireless service revenues due to competitive pressures. For this segment, we analyze results in Argentina, Paraguay and Uruguay in terms of the Argentine peso, because Argentina accounts for the major portion of the operations in these three countries.

Segment operating income for 2020 decreased by 53.2% over 2019. Adjusted segment operating income for 2020 decreased by 16.8% over 2019.

Segment operating margin was 3.3% in 2020, as compared to 6.1% in 2019. Adjusted segment operating margin was 15.7% in 2020, which decreased in comparison to 18.5% in 2019. This decrease in the segment operating margin for 2020 principally reflects a decrease in revenues, as described above, coupled with an increase in costs and expenses, including as a result of inflation or exchange rates.

Andean Region - Ecuador and Peru

The number of prepaid wireless subscribers for 2020 decreased by 4.7% over 2019, and the number of postpaid wireless subscribers decreased by 8.9%, resulting in a decrease in the total number of wireless subscribers in our Andean Region segment of 6.1%, or 1.2 million, to approximately 18.9 million as of December 31, 2020. The number of fixed voice RGUs for 2020 decreased by 4.4% over 2019, the number of broadband RGUs increased by 21.9%

29

and the number of Pay TV RGUs decreased by 13.6 %, resulting in an increase in total fixed RGUs in our Andean Region segment of 5.3%, or 109 thousand, to approximately 2.1 million as of December 31, 2020.

Segment operating revenues for 2020 decreased by 2.9% over 2019. Adjusted segment operating revenues for 2020 decreased by 9.8% over 2019. This decrease principally reflects a decrease in revenues in Ecuador, partially offset by an increase in Peru. The decrease in revenues in Ecuador reflects a decrease in revenues from prepaid and postpaid wireless and Pay TV services, partially offset by a slight increase in revenues from fixed voice services. In Peru, fixed service revenues increased, and they were partially offset by lower revenues on postpaid mobile services.

Segment operating income for 2020 increased by 8.4% over 2019. Adjusted segment operating income for 2020 decreased by 2.9% over 2019. This decrease principally reflects an operating income increase of 40.0% in Peru and a decrease of 21.0% in Ecuador.

Segment operating margin was 16.1% in 2020, as compared to 14.4% in 2019. Adjusted segment operating margin was 18.4% in 2020, as compared to 17.1% in 2019. This increase in the segment operating margin for 2020 principally reflects a recovery in Peru and reduced costs as a result of our cost savings program, partially offset by a decrease in operating income in Ecuador.

Central America—Guatemala, El Salvador, Honduras, Nicaragua, Panama and Costa Rica

The number of prepaid wireless subscribers for 2020 decreased by 1.5% over 2019, and the number of postpaid wireless subscribers decreased by 9.7%, resulting in a decrease in the total number of wireless subscribers in our Central America segment of 2.9%, or 444 thousand, to approximately 15 million as of December 31, 2020. The number of fixed voice RGUs for 2020 decreased by 8.0% over 2019, the number of broadband RGUs increased by 5.3%, and the number of Pay TV RGUs decreased by 5.1%, resulting in a decrease in total fixed RGUs in our Central America segment of 3.7%, or 162 thousand, to approximately 4.2 million as of December 31, 2020.

Segment operating revenues for 2020 increased by 3.1% over 2019. Adjusted segment operating revenues for 2020 decreased by 7.8% over 2019.

Segment operating income for 2020 decreased by 29.9% over 2019. Adjusted segment operating income for 2020 decreased by 32.7% over 2019.

Segment operating margin was 8.3% in 2020, as compared to 12.2% in 2019. Adjusted segment operating margin was 10.1% in 2020, as compared to 13.7% in 2019. This decrease in segment operating margin for 2020 principally reflects a decrease in income, particularly in Panama, partially offset by the cost savings program that continues to be implemented in the operating segment.

Caribbean - Dominican Republic & Puerto Rico

The number of prepaid wireless subscribers for 2020 increased by 3.3% over 2019, and the number of postpaid wireless subscribers increased by 1.8%, resulting in an increase in the total number of wireless subscribers in our Caribbean segment of 2.9%, or 178 thousand, to approximately 6.4 million as of December 31, 2020. The number of fixed voice RGUs for 2020 decreased by 2.5% over 2019, the number of broadband RGUs increased by 6.1% and the number of Pay TV RGUs increased by 2.4%, resulting in an increase in total fixed RGUs in our Caribbean segment of 1.2%, or 30 thousand, to approximately 2.5 million as of December 31, 2020.

Segment operating revenues for 2020 increased by 8.1% over 2019. Adjusted segment operating revenues for 2020 decreased by 3.3% over 2019. This decrease in segment operating revenues principally reflects exchange rate losses in the Dominican Republic, partially offset by an increase in operating revenues in Puerto Rico. We analyze segment results in U.S. dollars because it is the functional currency of our operations in Puerto Rico.

Segment operating income for 2020 increased by 16.7% over 2019. Adjusted segment operating income for 2020 increased by 2.8% over 2019. This increase principally reflects an increase of 29.7% in Puerto Rico and an increase of 6.2% in the Dominican Republic.

Segment operating margin was 17.3% in 2020, as compared to 16.1% in 2019. Adjusted segment operating margin was 14.9% in 2020, as compared to 14.1% in 2019. This increase in segment operating margin for 2020 principally reflects an increase in service revenues in Puerto Rico, all revenues in the Dominican Republic and the effects of the cost savings program, partially offset by the depreciation of the Dominican Peso.

United States

The number of prepaid wireless subscribers for 2020 decreased by 0.9% over 2019, or 194 thousand, to approximately 20.6 million total wireless subscribers in the United States as of December 31, 2020.

30

Segment operating revenues for 2020 increased by 13.7% over 2019. Adjusted segment operating revenues for 2020 increased by 1.9% over 2019. This increase in segment operating revenues principally reflects higher mobile voice and data usage as the mix of clients continues to shift towards to our high-usage Tracfone brands.

Segment operating income for 2020 increased by 256.4% over 2019. Adjusted segment operating income for 2020 increased by 58.6% over 2019.

Segment operating margin was 6.0% in 2020, as compared to 1.9% in 2019. Adjusted segment operating margin was 11.0% in 2020, as compared to 7.1% in 2019. This increase in segment operating margin for 2020 principally reflects better controls over commercial, operational and administrative costs.

Europe

The number of prepaid wireless subscribers for 2020 decreased by 6.7% over 2019, and the number of postpaid wireless subscribers increased by 5.1%, resulting in an increase in the total number of wireless subscribers in our Europe segment of 2.7%, or 568 thousand, to approximately 21.9 million as of December 31, 2020. The number of fixed voice RGUs for 2020 decreased by 5.4% over 2019, the number of broadband RGUs increased by 0.4% and the number of Pay TV RGUs almost remained the same, resulting in a decrease in total fixed RGUs in our Europe segment of 1.5%, or 93 thousand, to approximately 6.0 million as of December 31, 2020.

Segment operating revenues for 2020 increased by 13.3% over 2019. Adjusted segment operating revenues for 2020 decreased by 0.3% over 2019. This decrease in segment operating revenues principally reflects a decrease in mobile voice, partially offset by an increase in fixed services.

Segment operating income for 2020 increased by 51.5% over 2019. Adjusted segment operating income for 2020 increased by 32.2% over 2019. Segment operating margin was 11.8% in 2020, as compared to 8.8% in 2019. Adjusted segment operating margin was 11.7% in 2020, as compared to 8.8% in 2019. This increase in segment operating margin for 2020 principally reflects our corporate cost savings program in all countries and improved performance in some countries.

31

FUNDING REQUIREMENTS

We generate substantial cash flows from our operations. On a consolidated basis, our cash flows from operating activities were Ps.280.8 billion in 2020, compared to Ps.234.3 billion in 2019. Our cash and cash equivalents amounted to Ps.35.9 billion at December 31, 2020, compared to Ps.19.7 billion at December 31, 2019. We believe our working capital is sufficient for our present requirements, and we anticipate generating sufficient cash to satisfy our long-term liquidity needs. We use the cash that we generate from our operations and from borrowings principally for the following purposes:

• Capital expenditures - We make substantial capital expenditures to continue expanding and improving our networks in each country in which we operate. Our capital expenditures on plant, property and equipment and acquisition or renewal of licenses were Ps.129.6 billion in 2020, Ps.151.8 billion in 2019 and Ps.151.8 billion in 2018. The amount of capital expenditures can vary significantly from year to year, depending on acquisition opportunities, concession renewal schedules and the need for more spectrum. We have budgeted capital expenditures for 2021 of approximately U.S.$7.5 billion (Ps.152.1 billion), which will be primarily funded by our operating activities. That amount is subject to change as we continue to evaluate our capital expenditure needs and opportunities in light of the ongoing COVID-19 outbreak.

• Acquisitions - In December 2020, we entered into an agreement to acquire 32% of Oi Group’s Brazilian mobile business for R$3.6 billion. The completion of the acquisition is subject to certain customary conditions, including regulatory approval.

• Short-term debt and contractual obligations - We must pay interest on our indebtedness and repay principal when due. As of December 31, 2020, we had approximately Ps.247.6 billion in debt and contractual obligations due in 2021, including approximately Ps.148.1 billion of principal and amortization, Ps.25.1 billion in short-term lease debt, and Ps.74.4 billion in purchase obligations.

• Long-term debt and contractual obligations - As of December 31, 2020, we had approximately Ps.267.1 billion in debt and contractual obligations due between 2022 and 2024, including approximately Ps.169.4 billion of principal and amortization, Ps.58.1 billion in long-term lease debt,

and Ps.39.6 billion in purchase obligations. On the same date, we had approximately Ps.350.6 billion in debt and contractual obligations due between 2025 and 2026, including approximately Ps.310.9 billion of principal and amortization, Ps.26.1 billion in long-term lease debt, and Ps.13.6 billion in purchase obligations.

• Dividends - We pay regular dividends. We paid Ps.9.6 billion in dividends in 2020 and Ps.24.2 billion in 2019. Our shareholders approved on April [26], 2021 the payment of a Ps.0.40 ordinary dividend per share in two installments in 2021. See “Share Ownership and Trading—Dividends” under Part IV in this annual report.

• Share repurchases - We regularly repurchase our own shares. We spent Ps.5,241.3 million repurchasing our own shares in the open market in 2020 and Ps.429.8 million in 2019. Our shareholders have authorized additional amounts to repurchase, and as of March 31, 2021, we have spent Ps.4,538.8 million repurchasing our shares in the open market in 2021, but whether we will continue to do so will depend on our operating cash flow and on various other considerations, including market prices and our other capital requirements.

Other than the amounts described above, we had no other outstanding material purchase commitments as of December 31, 2020. We enter into a number of supply, advertising and other contracts in the ordinary course of business, but those contracts are not material to our liquidity. The obligations described above do not include accounts payable, pension liabilities, interest payments or payments under derivatives contracts. See notes 14, 15 and 17 to our audited consolidated financial statements included in this annual report.

BORROWINGS

In addition to cash flows generated from operations, we rely on a combination of borrowings from a range of different sources, including the international capital markets, capital markets in Mexico and other countries where we operate, international and local banks, equipment suppliers and export credit agencies. We seek to maintain access to diverse sources of funding. In managing our funding, we generally seek to keep our leverage, as measured by the ratio of net debt to EBITDA, at a level that is consistent with maintaining the ratings given to our debt by the principal credit rating agencies. Our total consolidated indebtedness as of December 31, 2020 was Ps.628.4 billion, of which Ps.148.1 billion was short-term debt (including the current portion of long-term debt), compared to Ps.624.3 billion as of December 31, 2019.

32

Management defines net debt as total debt minus cash and cash equivalents, minus marketable securities (including Koninklijke KPN N.V. (“KPN”) shares) and other short-term investments. As of December 31, 2020, we had net debt of Ps.537.8 billion, compared to Ps.556.8 billion as of December 31, 2019. Without taking into account the effects of derivative financial instruments that we use to manage our interest rate and currency risk, approximately 87.5% of our indebtedness at December 31, 2020 was denominated in currencies other than Mexican pesos (approximately 33.9% of such non-Mexican peso debt in U.S. dollars and 66.1% in other currencies), and approximately 10.9% of our consolidated debt obligations bore interest at floating rates. After the effects of derivative transactions and excluding the debt of Telekom Austria, approximately 44.9% of our net debt as of December 31, 2020 was denominated in Mexican pesos.

The weighted average cost of all our third-party debt at December 31, 2020 (excluding commissions and reimbursement of certain lenders for Mexican taxes withheld) was approximately 3.72% per annum.

Our major categories of indebtedness at December 31, 2020 are summarized in the table below. See also Note 14 to our audited consolidated financial statements included in this annual report.

DEBT
(millions of Mexican pesos)
SENIOR NOTES
DENOMINATED IN U.S. DOLLARS
América Móvil 3.125% Senior Notes due 2022	31,918
América Móvil 3.625% Senior Notes due 2029	19,949
América Móvil 2.875% Senior Notes due 2030	19,949
América Móvil 6.375% Senior Notes due 2035	19,576
América Móvil 6.125% Senior Notes due 2037	7,365
América Móvil 6.125% Senior Notes due 2040	39,897
América Móvil 4.375% Senior Notes due 2042	22,941
América Móvil 4.375% Senior Notes due 2049	24,936

  Total 186,531

DENOMINATED IN MEXICAN PESOS
América Móvil 6.450% Senior Notes due 2022	22,500
América Móvil 7.125% Senior Notes due 2024	11,000
América Móvil 0.000% Domestic Senior Notes due 2025	4,911
América Móvil 8.460% Senior Notes due 2036	7,872
Telmex 8.360% Domestic Senior Notes due 2037	5,000

  Total 51,283

DENOMINATED IN EURO
América Móvil 3.000% Senior Notes due 2021	24,369
TKA 3.125% Senior Notes due 2021	18,277
TKA 4.000% Senior Notes due 2022	18,277

América Móvil 4.750% Senior Notes due 2022	18,277
TKA 3.500% Senior Notes due 2023	7,311
América Móvil 3.259% Senior Notes due 2023	18,277
América Móvil 1.500% Senior Notes due 2024	20,714
TKA 1.500% Senior Notes due 2026	18,277
América Móvil 0.750% Senior Notes due 2027	24,369
América Móvil 2.125% Senior Notes due 2028	15,840
América Móvil B.V. -0.230% to -0.310% Commercial Paper due 2021	40,941
Total	224,929

DENOMINATED IN POUND STERLING
América Móvil 5.000% Senior Notes due 2026	13,635
América Móvil 5.750% Senior Notes due 2030	17,726
América Móvil 4.948% Senior Notes due 2033	8,181
América Móvil 4.375% Senior Notes due 2041	20,452

  Total 59,994

DENOMINATED IN JAPANESE YEN
América Móvil 2.950% Senior Notes due 2039	2,512

  Total 2,512

DENOMINATED IN CHILEAN PESOS
América Móvil 3.961% Senior Notes due 2035	4,078

  Total 4,078

DENOMINATED IN BRAZILIAN REAIS
Claro Brasil 104.000% of CDI Domestic Senior Notes due 2021	4,222
Claro Brasil 104.250% of CDI Domestic Senior Notes due 2021	5,816
Claro Brasil CDI + 0.600% Domestic Senior Notes due 2021	1,382
Claro Brasil CDI + 0.960% Domestic Senior Notes due 2022	9,597
Claro Brasil 106.000% of CDI Domestic Senior Notes due 2022	7,677
Claro Brasil 106.500% of CDI Domestic Senior Notes due 2022	3,839

Total	32,533
HYBRID NOTES

DENOMINATED IN EURO
América Móvil NC10 (Series B) Capital Securities due 2073	13,403

  Total 13,403

BANK DEBT AND OTHER
DENOMINATED IN MEXICAN PESOS	27,100
DENOMINATED IN CHILEAN PESOS	8,926
DENOMINATED IN PERUVIAN SOLES	17,094

Total	53,120
Total Debt	628,383

  Less short-term debt and current portion of long-term debt 148,083

  Total Long-term Debt 480,300

EQUITY
Capital stock	96,342
Total retained earnings	314,718
Other comprehensive income (loss) items	(151,669)
Non-controlling interest	74,235

Total Equity	333,626
Total Capitalization (total long-term debt plus equity)	813,926

33

Additional information about certain categories of our indebtedness is provided below:

Mexican peso-denominated international notes. Our 8.46% senior notes due 2036 are denominated in Mexican pesos, but all amounts in respect of the notes are payable in U.S. dollars, unless a holder of notes elects to receive payment in Mexican pesos in accordance with specified procedures.

Mexican peso-denominated domestic notes. Our domestic senior notes (certificados bursátiles) sold in the Mexican capital markets have varying maturities, ranging from 2025 through 2037, and bear interest at fixed rates.

Global peso notes program. The global peso notes program was established in November 2012. Since its establishment, we have issued peso-denominated notes that can be distributed and traded on a seamless basis in Mexico and internationally. The notes are registered with the SEC in the United States and with the CNBV in Mexico.

International notes. We have outstanding debt securities in the international markets denominated in U.S. dollars, pounds sterling and euros. We have also issued debt securities in the local market in Japan. On March 31, 2021, we redeemed in full our 3.000% senior notes due 2021 with an aggregate principal outstanding amount of EUR 1 billion.

Hybrid notes. We have outstanding one series of Capital Securities maturing in 2073, denominated in euros totaling €550 million. The Capital Securities are subject to redemption at our option at varying dates beginning in 2023. Our hybrid notes are deeply subordinated, and when they were issued, the principal rating agencies stated that they would treat half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50% equity credit). Standard & Poor’s now treats 100% of the principal amount under the hybrid notes as indebtedness.

Bank loans. At December 31, 2020, we had approximately Ps.53.1 billion outstanding under a number of bank facilities bearing interest at fixed and variable rates. We also have two revolving syndicated credit facilities—one for U.S.$2.5 billion expiring in August 2024 and one for the Euro equivalent of U.S.$2.0 billion expiring in May 2021. We are currently negotiating with the lenders under the Euro credit facility for a 5-year extension and a reduction to the Euro equivalent of U.S.$1.5 billion. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2020, these credit facilities were not drawn. Both facilities include covenants that limit our ability to incur secured debt, to effect a merger in which the surviving entity would not be América Móvil or to sell substantially all of our assets. In addition, both facilities require us to maintain a consolidated ratio of debt to EBITDA not greater than 4.0 to 1.0 and a consolidated ratio of

EBITDA to interest expense not less than 2.5 to 1.0. As of the date of this annual report, we are in compliance with these covenants. Telekom Austria has an undrawn revolving syndicated credit facility for €1.0 billion (the “TKA Facility”) expiring in July 2026. The TKA Facility includes covenants that limit Telekom Austria’s ability to incur secured debt, effect certain mergers or sell substantially all of its assets and our ability to transfer control over, or reduce our share ownership in, Telekom Austria. For more information, see Note 14 to our audited consolidated financial statements included in this annual report.

Options involving TKA shares. The Company has entered into the sale of a cash-settled put option related to TKA shares that will expire in August 2023. See Note 7 to our audited consolidated financial statements included in this annual report.

Bonds exchangeable for KPN shares. On March 2, 2021, our wholly-owned Dutch subsidiary, América Móvil B.V., issued approximately EUR 2.1 billion principal amount of senior unsecured bonds. The bonds will mature in 3 years, will not bear interest and were issued at an issue price of 104.75% of their principal amount. The Bonds will be exchangeable into ordinary shares of KPN and the initial exchange price is EUR 3.1185.

Euro-denominated commercial paper program. At December 31, 2020, debt under our euro-denominated commercial paper program aggregated to Ps.$40.9 billion.

As of December 31, 2020, we had, on an unconsolidated basis, unsecured and unsubordinated indebtedness of approximately Ps.455.6 billion (U.S.$22.8 billion), excluding guarantees of subsidiaries’ indebtedness. As of December 31, 2020, our subsidiaries had indebtedness (excluding guarantees of indebtedness of us and our other subsidiaries) of approximately Ps.172.7 billion (U.S.$8.7 billion), and a substantial portion of our subsidiaries’ indebtedness is owed by Telekom Austria.

As of December 31, 2020, we had no off-balance sheet arrangements that require disclosure under applicable SEC regulations.

34

GUARANTOR FINANCIAL INFORMATION

In March 2020, the SEC amended Rule 3-10 of Regulation S-X and adopted Rule 13-01 to simplify disclosure requirements related to certain registered securities, which we have adopted effective immediately. Some of the public securities issued by América Móvil in international and Mexican capital markets are guaranteed by Telcel, a wholly-owned subsidiary. As of December 31, 2020, the aggregate principal amount of debt guaranteed by Telcel was Ps.122,215 million. The guarantees provide that, in case of the failure of the Company to punctually make payment of any principal, premium, interest, additional amounts or any other amounts that may become payable by the Company in respect of the notes, Telcel agrees to immediately pay the amount that is due and required to be paid.

The following table presents summarized unconsolidated financial information for the Company and Telcel after eliminating transactions and balances between them.

		DECEMBER 31, 2020
	PARENT			GUARANTOR
Current Assets	Ps.		45,320,066	Ps.	45,909,283
Total Assets			80,095,274		145,711,133
Current Liabilities			93,871,633		41,939,310
Total Liabilities			504,150,282		75,949,203
Total revenues	Ps.		72,124,718	Ps.	132,393,542
Operating Income			18,559,695		3,304,582
Net profit for the year			(37,332,145)		50,569,556

RISK MANAGEMENT

We regularly assess our interest rate and currency exchange exposures in order to determine how to manage the risk associated with these exposures. We have indebtedness denominated in currencies other than the currency of our operating environments, and we have expenses for operations and for capital expenditures in a variety of currencies. We use derivatives to adjust the resulting exchange rate and interest rate exposures. We do not use derivatives to hedge the exchange rate exposures that arise from having operations in different countries.

Our practices vary from time to time depending on our judgment of the level of risk, expectations as to exchange or interest rate movements and the costs of using derivative financial instruments. We may stop using derivative financial instruments or modify our practices at any time.

As of December 31, 2020, we had derivatives positions with an aggregate net fair value asset of Ps.6.7 billion, which are described in Note 7 to our audited consolidated financial statements. For additional information, see Note 2 v) to our audited consolidated financial statements included in this annual report.

35

36

[Graphic Appears Here]

37

RISKS RELATING TO OUR OPERATIONS

Competition in the telecommunications industry is intense and could adversely affect the revenues and profitability of our operations

Our businesses face substantial competition. We expect that competition will intensify in the future as a result of the entry of new competitors, the development of new technologies, products and services and convergence. We also expect consolidation in the telecommunications industry, as companies respond to the need for cost reduction and additional spectrum. This trend may result in larger competitors with greater financial, technical, promotional and other resources to compete with our businesses.

Among other things, our competitors could:

• provide higher handset subsidies;

• offer higher commissions to retailers;

• provide free airtime or other services (such as internet access);

• offer services at lower costs through double, triple and quadruple play packages or other pricing strategies;

• expand their networks faster; or

• develop and deploy improved technologies faster, such as 5G LTE technology.

Competition can lead us to increase advertising and promotional spending and to reduce prices for services and handsets. These developments may lead to lower operating margins, greater choices for customers and increasing movement of customers among competitors, which may make it difficult for us to retain or add new customers. The cost of adding new customers may also continue to increase, reducing profitability even if customer growth continues.

Our ability to compete successfully will depend on our coverage, the quality of our network and service, our rates, customer service, effective marketing, our success in selling double, triple and quadruple play packages and our ability to anticipate and respond to various competitive factors affecting the telecommunications industry, including new services and technologies, changes in consumer preferences, demographic trends, economic conditions and discount pricing strategies by competitors.

If we are unable to respond to competition and compensate for declining prices by adding new customers, increasing usage and offering new services, our revenues and profitability could decline.

Governmental or regulatory actions could adversely affect our operations

Our operations are subject to extensive government regulation and can be adversely affected by changes in law, regulation or regulatory policy. The licensing, construction, operation, sale, resale and interconnection arrangements of telecommunications systems in Latin America and elsewhere are regulated to varying degrees by government or regulatory authorities. Any of these authorities having jurisdiction over our businesses could adopt or change regulations or take other actions that could adversely affect our operations. In particular, the regulation of prices that operators may charge for their services and environmental matters, including renewable energy and climate change regulation, could have a material adverse effect by reducing our profit margins. See “Regulation” under Part VI for a discussion on the functional separation of Telmex and Telnor wholesale services, “Legal Proceedings” under Part VI and Note 17 to our audited consolidated financial statements included in this annual report.

In addition, changes in political administrations could lead to new regulation and the adoption of policies that could adversely affect our operations, including those concerning competition and taxation of communications services. For example, since 2013, Mexico has implemented reforms to the telecommunications sector that aim to promote more competition and investment by imposing asymmetric regulation upon economic agents deemed “preponderant or dominant.” The asymmetric regulations that are applicable to us, which have adversely affected the results of our Mexican operations, may be reviewed every two years. We are unable to anticipate the effect of an amendment on existing asymmetric regulations, or the imposition of new ones, on our results or operations in Mexico. In other countries, we could also face policies such as preferences for local over foreign ownership of communications licenses and assets or for government over private ownership, which could make it more cumbersome or impossible for us to continue to develop our businesses. Restrictions such as those described above could result in lower revenues and require capital investments, all of which could materially adversely affect our businesses and results of operations.

Our failure to meet or maintain quality of service goals and standards could result in fines and other adverse consequences

The terms of the concessions under which our subsidiaries operate require them to meet certain service quality goals, including, for example, minimum call completion rates, maximum busy circuits rates, operator availability and responsiveness to repair requests. Failure to meet service quality obligations in the past has resulted in the imposition

38

of material fines by regulatory entities. We are also subject to and may be subject to additional claims by customers, including class actions, seeking remedies for service problems. Our ability to comply with these obligations in the future may be affected by factors beyond our control and, accordingly, we cannot assure that we will be able to comply with them.

Dominant carrier related regulations could adversely affect our business by limiting our ability to pursue competitive and profitable strategies

Our regulators are authorized to impose specific requirements as to rates (including termination rates), quality of service, access to active or passive infrastructure and information, among other matters, on operators that are determined to have substantial market power in a specific market. We cannot predict what steps regulatory authorities might take in response to determinations regarding substantial market power in the countries in which we operate. However, adverse determinations against our subsidiaries could result in material restrictions on our operations. We may also face additional regulatory restrictions and scrutiny as a result of our provision of combined services.

If dominant carrier regulations are imposed on our business in the future, they could likely reduce our flexibility to adopt competitive market policies and impose specific tariff requirements or other special regulations on us, such as additional requirements regarding disclosure of information or quality of service. Any such new regulation could have a material adverse effect on our operations.

We must continue to acquire additional radio spectrum capacity and upgrade our networks in order to expand our customer base and maintain the quality of our wireless services

Licensed radio spectrum is essential to our growth and the quality of our wireless services and for the operation and deployment of our networks, including new generation networks such as 5G LTE technology, to offer improved data and value-added services. We obtain most of our radio spectrum through auctions conducted by governments of the countries in which we operate. Participation in spectrum auctions in most of these countries requires prior government authorization, and we may be subject to caps on our ability to acquire additional spectrum. Our inability to acquire additional radio spectrum capacity could affect our ability to compete successfully because it could result in, among other things, a decrease in the quality of our network and service and in our ability to meet the demands of our customers.

In the event we are unable to acquire additional radio spectrum capacity, we can increase the density of our network by building more cell and switch sites, but such measures are costly and may be subject to local restrictions and regulatory approvals, and they would not meet our needs as effectively.

We have concessions and licenses for fixed terms, and the government may revoke or terminate them as well as reacquire the assets under our concession under various circumstances, some of which are beyond our control

Our concessions and licenses have specified terms, ranging typically from five to 20 years, and are generally subject to renewal upon payment of a fee, but renewal is not assured. The loss of, or failure to renew, any one concession could have a material adverse effect on our business and results of operations. Our ability to renew concessions and the terms of renewal are subject to a number of factors beyond our control, including the prevalent regulatory and political environment at the time of renewal. Fees are typically established at the time of renewal. As a condition for renewal, we may be required to agree to new and stricter terms and service requirements. In some of the jurisdictions where we operate and under certain circumstances, mainly in connection with fixed services, we may be required to transfer certain assets covered by some of our concessions to the government pursuant to valuation methodologies that vary in each jurisdiction. It is uncertain whether reversion would ever be applied in many of the jurisdictions where we operate and how reversion provisions would be interpreted in practice. For further information, see “Regulation” under Part VI of this annual report and Note 17 to our audited consolidated financial statements included in this annual report.

In addition, the regulatory authorities in the jurisdictions in which we operate can revoke our concessions under certain circumstances. In Mexico, for example, the Federal Law on Telecommunications and Broadcasting gives the government the right to temporarily seize our concessions or to take over the management of our networks, facilities and personnel in cases of failures to meet obligations under our concession agreements, imminent danger to national security, internal peace or the national economy, natural disasters and public unrest. See “Regulation” under Part VI of this annual report.

39

We continue to look for acquisition opportunities, and any future acquisitions and related financing could have a material effect on our business, results of operations and financial condition

We continue to look for investment opportunities in telecommunications and related companies worldwide, including in markets where we are already present, and we often have several possible acquisitions under consideration. Any future acquisitions, and related financing and acquired indebtedness, could have a material effect on our business, results of operations and financial condition, but we cannot provide assurances that we will complete any of them. In addition, we may incur significant costs and expenses as we integrate these companies in our systems, controls and networks.

We are subject to significant litigation

Some of our subsidiaries are subject to significant litigation that, if determined adversely to our interests, may have a material adverse effect on our business, results of operations, financial condition or prospects. Our significant litigation is described in “Regulation” under Part VI and in Note 17 to our audited consolidated financial statements included in this annual report.

We are contesting significant tax assessments

We and some of our subsidiaries have been notified of tax assessments for significant amounts by the tax authorities of the countries in which we operate, especially in Brazil, Mexico and Ecuador. The tax assessments relate to, among other things, alleged improper deductions and underpayments. We are contesting these tax assessments in several administrative and legal proceedings, and our challenges are at various stages. If determined adversely to us, these proceedings may have a material adverse effect on our business, results of operations, financial condition or prospects. In addition, in some jurisdictions, challenges to tax assessments require the posting of a bond or security for the contested amount, which may reduce our flexibility in operating our business. Our significant tax assessments are described in Note 17 to our audited consolidated financial statements included in this annual report.

Failure to comply with anti-corruption, anti-bribery and anti-money laundering laws could harm our reputation, subject us to substantial fines and adversely affect our business

We operate in multiple jurisdictions and are subject to complex regulatory frameworks with increased enforcement activities worldwide. Our governance and compliance

processes may not prevent future breaches of legal, accounting or governance standards and regulations. We may be subject to breaches of our code of ethics, anti-corruption policies and business conduct protocols and to instances of fraudulent behavior, corrupt practices and dishonesty by our employees, contractors or other agents. Our failure to comply with applicable laws and other regulatory requirements could harm our reputation, subject us to substantial fines, sanctions or penalties and adversely affect our business and ability to access financial markets.

A system failure could cause delays or interruptions of service, which could have an adverse effect on our operations

We need to continue to provide our subscribers with a reliable service over our network. Some of the risks to our network and infrastructure include the following:

• physical damage to access lines and fixed networks;

• power surges or outages;

• natural disasters;

• climate change;

• malicious actions, such as theft or misuse of customer data;

• limitations on the use of our radio bases;

• software defects;

• human error; and

• other disruptions beyond our control, including as a result of civil unrest in the regions where we operate.

In Brazil, for example, our satellite operations may be affected if we experience a delay in launching new satellites to replace those currently in use when they reach the end of their operational lives. Such delay may occur because of, among other reasons, construction delays, unavailability of launch vehicles and/or launch failures. In addition, our operations have been disrupted by natural disturbances such as hurricanes and earthquakes.

We have instituted measures to reduce these risks. However, there is no assurance that any measures we implement will be effective in preventing system failures under all circumstances. System failures may cause interruptions in services or reduced capacity for our customers, either of which may have an adverse effect on our operations due to, for example, increased expenses, potential legal liability, loss of existing and potential subscribers, reduced user traffic, decreased revenues and reputational harm.

40

Our financial condition and results of operations may be adversely affected by the occurrence of severe weather, natural or man-made disasters and other catastrophic events, including war, terrorism and other acts of violence, and disease

Our operations can be disrupted by unforeseen events, including war, terrorism, and other international, regional, or local instability or conflicts (including labor issues), embargos, public health issues (including tainted food, food-borne illnesses, food tampering, tampering with or failure of water supply or widespread or pandemic illness such as coronavirus (“COVID-19”), Ebola, the avian or H1N1 flu, MERS), and natural disasters such as earthquakes, tsunamis, hurricanes, or other adverse weather and climate conditions in the countries in which we operate. These events could disrupt or prevent our ability to perform functions and otherwise impede our ability to continue business operations in a continuous manner, which in turn may materially and adversely impact our business and operating results.

The COVID-19 pandemic has had a material impact on the global economy and our business

The COVID-19 pandemic has had, and continues to have, a material impact on businesses around the world and the economic environments in which they operate. Governments in jurisdictions where we operate have taken aggressive measures to slow the spread of COVID-19, including quarantines and lock-downs, restrictions on travel, and closing of businesses and public and private institutions. In addition, governments have imposed a wide variety of consumer protection measures that limit how certain businesses, including telecommunications companies, can operate their businesses and interact with their customers. The virus continues to spread globally and cause significant social and market disruption.

There are a number of consequences of the pandemic and its impact on global economies that could have a material adverse effect on our business.

• In 2020, the economic slowdown had an adverse impact on our customers’ ability to pay for our services.

• We have been required to change or restrict many of our operations, including customer support, servicing and repairs, network maintenance, retail operations and investment projects. We have also experienced supply chain disruptions for handsets and other equipment. This could have an impact on our costs.

• We have implemented policies, including work-from-home policies and social distancing policies, that could limit the efficiency and effectiveness of our operations and our reporting and internal controls.

The extent of the impact of the COVID-19 on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic, and the availability and effectiveness of vaccines, all of which are highly uncertain and cannot be predicted. If the COVID-19 pandemic continues to spread, the impact on our operations, our clients, our suppliers and financial markets could materially adversely affect our financial condition or results of operations. See “Operating And Financial Review And Prospects—Effects of the COVID-19 Pandemic.”

Increases in labor and employee benefit costs may reduce our profitability, increase our funding requirements and could have an adverse impact on our operations

Many of our employees are members of labor unions with which we conduct collective negotiations on wages, benefits and working conditions. We use actuarial methodologies and assumptions such as discount rate, salary increase and mortality, among others, for the determination and valuation of our employee benefits, including retirement benefits. We evaluate from time to time, with the support of specialists, our actuarial methodologies and assumptions, as well as the valuation of the assets related to these benefits.

Our labor costs and the costs of maintaining employee benefits could be affected by several factors, including legislative and regulatory changes, work stoppages, subsequent negotiations, increases in healthcare costs, minimum wages, decreases in investment returns on the assets held in funds to support the payment of certain employee benefits and changes in the discount rate and mortality assumptions. An increase in labor and employee benefit costs could reduce our profitability, increase our funding requirements and have an adverse impact on our operations.

41

We rely on highly skilled personnel throughout all levels of our business. Our business could be harmed if we are unable to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture.

The market for highly skilled workers and leaders in our industry is extremely competitive. We believe that our future success depends in substantial part on our ability to recruit, hire, motivate, develop, and retain talented personnel for all areas of our organization, including our CEO and the other members of our senior leadership team. Our inability to retain these employees or to replace them with qualified and capable successors could hinder our strategic planning and execution. If key employees depart, our business could be negatively impacted. We may incur significant costs in identifying, hiring and replacing departing employees and may lose significant expertise and talent. As a result, we may not be able to meet our business plan and our revenue growth and profitability may be materially adversely affected.

Cybersecurity incidents and other breaches of network or information technology security could have an adverse effect on our business and our reputation

Cybersecurity incidents, and other tactics designed to gain access to and exploit sensitive information by breaching critical systems of large companies, are evolving and have been increasing in both sophistication and occurrence in recent years. While we employ a number of measures to prevent, detect and mitigate such incidents, there is no guarantee that we will be able to adequately anticipate or prevent one. Cybercrime, including attempts to overload our servers with denial-of-service attacks, theft, social engineering, phishing, ransomware or similar disruptions from unauthorized access or attempted unauthorized access to our systems could result in the destruction, misuse or release of personal information or other sensitive data. However, it is difficult to detect or prevent evolving forms of cybersecurity incidents, and our systems, and those of our third-party service providers and of our customers, are vulnerable to cybersecurity incidents.

In the event that our systems are breached or damaged for any reason, we may suffer loss or unavailability of data and interruptions to our business operations. If such an event occurs, the unauthorized disclosure, loss or unavailability of data and the disruption to our fixed-line or wireless networks may have a material adverse effect on our business and results of operations. The costs associated with a cybersecurity incident could include increased expenditures on information and cybersecurity measures, damage to our reputation, loss of existing customers and business partners

and lead to financial losses from remedial actions and potential liability, including possible litigation and sanctions. Any of these occurrences may result in a material adverse effect on our results of operations and financial condition.

Failure to achieve proper data governance could lead to data mismanagement

We process large amounts of personally identifiable information of customers and employees and are subject to various compliance, security, privacy, data quality and regulatory requirements. Failure to achieve proper data governance could lead to data mismanagement which in turn could result in data loss, regulatory investigations or sanctions, and cybersecurity risk. We are subject to data privacy regulations in the countries where we operate. Complying with such regulations may expose us to increased costs and limit our ability to transfer data between certain jurisdictions, which may adversely affect our operations.

If our churn rate increases, our business could be negatively affected

The cost of acquiring a new subscriber is much higher than the cost of maintaining an existing subscriber. Accordingly, subscriber deactivations, or “churn,” could have a material negative impact on our operating income, even if we are able to obtain one new subscriber for each lost subscriber. A substantial majority of our subscribers are prepaid, and we do not have long-term contracts with them. Our average churn rate on a consolidated basis was 3.8% for the year ended December 31, 2020 and 4.1% for the year ended December 31, 2019. If we experience an increase in our churn rate, our ability to achieve revenue growth could be materially impacted. In addition, a decline in general economic conditions could lead to an increase in churn, particularly among our prepaid subscribers.

We rely on key suppliers to provide equipment that we need to operate our business

We rely upon various key suppliers to provide us with handsets, network equipment or services, which we need to expand and operate our business. Our key suppliers include Huawei, Ericsson and Alcatel. If these suppliers fail to provide equipment or service to us on a timely basis, we could experience disruptions, which could have an adverse effect on our revenues and results of operations. In addition, we might be unable to satisfy requirements under our concessions.

Government or regulatory actions with respect to certain suppliers may impact us. For example, the government of the United States and Canada, among others, are currently conducting a regulatory review of certain international suppliers of network equipment and technologies to evaluate

42

potential risks. We are currently unable to predict the outcome of such reviews, including any possible restrictions placed on our key suppliers, and as a result we cannot determine their potential impact on our business.

Our ability to pay dividends and repay debt depends on our subsidiaries’ ability to pay dividends and make other transfers to us

We are a holding company with no significant assets, other than the shares of our subsidiaries and our holdings of cash and cash equivalents. Our ability to pay dividends and repay debt depends on the continued transfer to us of dividends and other income from our subsidiaries. The ability of our subsidiaries to pay dividends and make other transfers to us may be limited by various regulatory, contractual and legal constraints that affect them.

We may fail to realize the benefits anticipated from acquisitions, divestments and significant investments we make from time to time

The business growth opportunities, revenue benefits, cost savings and other benefits we anticipated to result from our acquisitions, divestments and significant investments may not be achieved as expected, or may be delayed. Our divestments may also adversely affect our prospects. For example, we may be unable to fully implement our business plans and strategies for the combined businesses due to regulatory limitations, and we may face regulatory restrictions in our provision of combined services in some of the countries in which we operate. To the extent that we incur higher integration costs or achieve lower revenue benefits or fewer cost savings than expected, or if we are required to recognize impairments of acquired assets, investments or goodwill, our results of operations and financial condition may suffer.

A downgrade of Mexico’s credit rating could affect us

Credit rating agencies regularly evaluate Mexico and its sovereign rating based on various factors including macroeconomic trends, tax and budgetary conditions and indebtedness metrics. If Mexico’s sovereign credit rating is downgraded by credit rating agencies, the rating of our securities may also be downgraded, which could negatively affect our financing costs and the market price of our securities.

Changing expectations from stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks

Influential investors and other stakeholders are increasingly focused on the environmental, social and governance (“ESG”) practices of companies across all industries. If we do not adapt to or comply with evolving expectations, or if we are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, we may suffer from reputational damage, and our business, financial condition or stock price could be materially and adversely affected. If we do not meet our stakeholders’ expectations or we are not effective in addressing ESG matters or achieve relevant sustainability goals, trust in our brand may suffer and our business or our ability to access capital could be harmed.

RISKS RELATING TO THE TELECOMMUNICATIONS INDUSTRY GENERALLY

Changes in the telecommunications industry could affect our future financial performance

The telecommunications industry continues to experience significant changes as new technologies are developed that offer subscribers an array of choices for their communications needs. These changes include, among others, regulatory changes, evolving industry standards, ongoing improvements in the capacity and quality of digital technology, shorter development cycles for new products, evolving renewable energy and clean technologies, and changes in end-user needs and preferences. There is uncertainty as to the pace and extent of growth in subscriber demand, and as to the extent to which prices for airtime, broadband access, Pay TV and fixed-line rental may continue to decline. Our ability to compete in the delivery of high-quality internet and broadband services is particularly important, given the increasing contribution of revenues from data services to our overall growth. If we are unable to meet future advances in competing technologies on a timely basis or at an acceptable cost, we could lose subscribers to our competitors. In general, the development of new services in our industry requires us to anticipate and respond to the varied and continually changing demands of our subscribers. It also requires significant capital expenditure, including investment in the continual maintenance and upgrading of our networks, in order to expand coverage, increase our capacity to absorb higher bandwidth usage and adapt to new technologies. We may not be able to accurately predict technological trends or the success of new services in the market. In addition, there could be legal or regulatory restraints to our introduction of new

43

services. If these services fail to gain acceptance in the marketplace, or if costs associated with implementation and completion of the introduction of these services materially increase, our ability to retain and attract subscribers could be adversely affected. This is true across many of the services we provide, including wireless and cable technology.

The intellectual property used by us, our suppliers or service providers may infringe on intellectual property rights owned by others

Some of our products and services use intellectual property that we own or license from others. We also provide content we receive from content producers and distributors, such as ringtones, text games, video games, video, including TV programs and movies, wallpapers or screensavers, and we outsource services to service providers, including billing and customer care functions, that incorporate or utilize intellectual property. We and some of our suppliers, content distributors and service providers have received, and may receive in the future, assertions and claims from third parties that the content, products or software utilized by us or our suppliers, content producers and distributors and service providers infringe on the patents or other intellectual property rights of these third parties. These claims could require us or an infringing supplier, content distributor or service provider to cease engaging in certain activities, including selling, offering and providing the relevant products and services. Such claims and assertions also could subject us to costly litigation and significant liabilities for damages or royalty payments, or require us to cease certain activities or prevent us from selling certain products or services.

Concerns about health risks relating to the use of wireless handsets and base stations may adversely affect our business

Portable communications devices have been alleged to pose health risks, including cancer, due to radio frequency emissions. Lawsuits have been filed in the United States against certain participants in the wireless industry alleging various adverse health consequences as a result of wireless phone usage, and our subsidiaries may be subject to similar litigation in the future. Government authorities could increase regulation on electromagnetic emissions of mobile handsets and base stations, which could have an adverse effect on our business, financial condition and results of operations. Research and studies are ongoing, and there can be no assurance that further research and studies will not demonstrate a link between radio frequency emissions and health concerns. Any negative findings in these studies could adversely affect the use of wireless technology and, as a result, our future financial performance.

Developments in the telecommunications sector have resulted, and may result, in substantial write-downs of the carrying value of certain of our assets

Where the circumstances require, we review the carrying value of each of our assets, subsidiaries and investments in associates to assess whether those carrying values can be supported by the future discounted cash flows expected to be derived from such assets. Whenever we consider that due to changes in the economic, regulatory, business or political environment, our goodwill, investments in associates, intangible assets or fixed assets may be impaired, we consider the necessity of performing certain valuation tests, which may result in impairment charges. The recognition of impairments of tangible, intangible and financial assets could adversely affect our results of operations.

RISKS RELATING TO OUR CONTROLLING SHAREHOLDERS, CAPITAL STRUCTURE AND TRANSACTIONS WITH AFFILIATES

Members of one family may be deemed to control us and may exercise their control in a manner that may differ from the interest of other shareholders

Based on reports of beneficial ownership of our shares filed with the SEC, Carlos Slim Helú, together with his sons, daughters and grandchildren (together, the “Slim Family”) may be deemed to control us. The Slim Family may be able to elect a majority of the members of our Board of Directors and to determine the outcome of other actions requiring a vote of our shareholders. The interests of the Slim Family may diverge from the interests of our other investors.

We have significant transactions with affiliates

We engage in various transactions with Telesites, S.A.B. de C.V. (“Telesites”) and certain subsidiaries of Grupo Carso, S.A.B. de C.V. (“Grupo Carso”) and Grupo Financiero Inbursa, S.A.B. de C.V. (“Grupo Financiero Inbursa”), all which may be deemed for certain purposes to be under common control with América Móvil.

These transactions occur in the ordinary course of business. Transactions with affiliates may create the potential for conflicts of interest.

We also make investments together with related parties, sell investments to related parties and buy investments from related parties. For more information about our transactions with affiliates, see “Related Party Transactions” under Part IV of this annual report.

44

Our bylaws restrict transfers of shares in some circumstances

Our bylaws provide that any acquisition or transfer of 10.0% or more of our capital stock by any person or group of persons acting together requires the approval of our Board of Directors. You may not acquire or transfer more than 10.0% of our capital stock without the approval of our Board of Directors.

The protections afforded to minority shareholders in Mexico are different from those in the United States

Under Mexican law, the protections afforded to minority shareholders are different from those in the United States. In particular, the law concerning fiduciary duties of directors is not as fully developed as in other jurisdictions, the procedure for class actions is different, and there are different procedural requirements for bringing shareholder lawsuits. As a result, in practice it may be more difficult for minority shareholders of América Móvil to seek remedies against us or our directors or controlling shareholders than it would be for shareholders of a company incorporated in another jurisdiction, such as Delaware.

Holders of L Shares and L Share ADSs have limited voting rights

Our bylaws provide that holders of L Shares are not permitted to vote, except on such limited matters as, among others, the transformation or merger of América Móvil or the cancellation of registration of the L Shares with the Mexican Securities Registry (Registro Nacional de Valores, or “RNV”) maintained by the CNBV or any stock exchange on which they are listed. If you hold L Shares or L Share ADSs, you will not be able to vote on most matters, including the declaration of dividends, which are subject to a shareholder vote in accordance with our bylaws.

Holders of ADSs are not entitled to attend shareholders’ meetings, and they may only vote through the depositary

Under our bylaws, a shareholder is required to deposit its shares with a custodian in order to attend a shareholders’ meeting. A holder of ADSs will not be able to meet this requirement and, accordingly, is not entitled to attend shareholders’ meetings. A holder of ADSs is entitled to instruct the depositary as to how to vote the shares represented by ADSs, in accordance with procedures provided for in the deposit agreements, but a holder of ADSs will not be able to vote its shares directly at a shareholders’ meeting or to appoint a proxy to do so.

Our bylaws may only be enforced in Mexico

Our bylaws provide that legal actions relating to the execution, interpretation or performance of the bylaws may be brought only in Mexican courts. As a result, it may be difficult for non-Mexican shareholders to enforce their shareholder rights pursuant to the bylaws.

It may be difficult to enforce civil liabilities against us or our directors, officers and controlling persons

América Móvil is organized under the laws of Mexico, with its principal place of business in Mexico City, and most of our directors, officers and controlling persons reside outside the United States. In addition, all or a substantial portion of our assets and their assets are located outside of the United States. As a result, it may be difficult for investors to effect service of process within the United States on such persons or to enforce judgments against them, including in any action based on civil liabilities under U.S. federal securities laws. There is doubt as to the enforceability against such persons in Mexico, whether in original actions or in actions to judgments of U.S. courts, of liabilities based solely on U.S. federal securities laws.

You may not be entitled to participate in future preemptive rights offerings

Under Mexican law, if we issue new shares for cash as part of certain capital increases, we must grant our shareholders the right to purchase a sufficient number of shares to maintain their existing ownership percentage in América Móvil. Rights to purchase shares in these circumstances are known as preemptive rights. Our shareholders do not have preemptive rights in certain circumstances such as mergers, convertible debentures, public offers and placement of repurchased shares. We may not be legally permitted to allow holders of ADSs or holders of L Shares or A Shares in the United States to exercise any preemptive rights in any future capital increase unless we file a registration statement with the U.S. Securities and Exchange Commission (the “SEC”) with respect to that future issuance of shares. At the time of any future capital increase, we will evaluate the costs and potential liabilities associated with filing a registration statement with the SEC and any other factors that we consider important to determine whether we will file such a registration statement.

We cannot assure you that we will file a registration statement with the SEC to allow holders of ADSs or U.S. holders of L Shares or A Shares to participate in a preemptive rights offering. As a result, the equity interest of such holders in América Móvil may be diluted proportionately. In addition, under current Mexican law, it is not practicable for the depositary to sell preemptive rights and distribute the proceeds from such sales to ADS holders.

45

RISKS RELATING TO DEVELOPMENTS IN MEXICO AND OTHER COUNTRIES

Economic, political and social conditions in Latin America, the United States, the Caribbean and Europe may adversely affect our business

Our financial performance may be significantly affected by general economic, political and social conditions in the markets where we operate. Many countries in Latin America and the Caribbean, including Mexico, Brazil and Argentina, have undergone significant economic, political and social crises in the past, and these events may occur again in the future. We cannot predict whether changes in political administrations will result in changes in governmental policy and whether such changes will affect our business. Factors related to economic, political and social conditions that could affect our performance include:

• significant governmental influence over local economies;

• substantial fluctuations in economic growth;

• high levels of inflation, including hyperinflation;

• changes in currency values;

• exchange controls or restrictions on expatriation of earnings;

• high domestic interest rates;

• price controls;

• changes in governmental economic, tax, labor or other policies;

• imposition of trade barriers;

• changes in law or regulation; and

• overall political, social and economic instability and civil unrest.

Adverse economic, political and social conditions in Latin America, the United States, the Caribbean or in Europe may inhibit demand for telecommunication services and create uncertainty regarding our operating environment or may affect our ability to renew our licenses and concessions, to maintain or increase our market share or profitability and may have an adverse impact on future acquisitions, which could have a material adverse effect on our company. In addition, the perception of risk in the countries in which we operate may have a negative effect on the trading price of our shares and ADSs and may restrict our access to international financial markets.

In various countries where we operate, for example, elections took place during 2018, which could lead to economic, political and social changes over which we have no control. Our business may also be especially affected by conditions in Mexico and Brazil, two of our largest markets. Mexican elections in July 2018 resulted in a new president and in a new Congress with a majority of members in both houses

representing a different political party from the parties that have been in power in the past. We cannot predict what changes in policy the Mexican administration may adopt, or their impact on our operations. Additionally, in Mexico, economic conditions are strongly impacted by those of the United States. There is continuing uncertainty regarding U.S. policies with respect to matters of importance to Mexico and its economy, particularly with respect to trade and migration.

Possible replacement of the LIBOR benchmark interest rate may have an impact on our business

On July 27, 2017, the U.K. Financial Conduct Authority (the authority that regulates LIBOR) announced that it would phase out LIBOR as a benchmark by the end of 2021. The discontinuation date for submission and publication of rates for certain tenors of USD LIBOR (1-month, 3-month, 6-month and 12-month) has been extended by the ICE Benchmark Administration (the administrator of LIBOR) until June 30, 2023. It is unclear whether new methods of calculating LIBOR will be established such that it continues to exist after 2021. Similarly, it is not possible to predict whether LIBOR will continue to be viewed as an acceptable market benchmark, what rate or rates may become acceptable alternatives to LIBOR, or what effect these changes in views or alternatives may have on financial markets for LIBOR-linked financial instruments. Potential changes, or uncertainty related to such potential changes may adversely affect the market for loans with LIBOR-indexed interest rates. When LIBOR ceases to exist, we may need to amend the credit and loan agreements with our lenders that utilize LIBOR as a factor in determining the interest rate based on a new standard that is established, if any. There is no guarantee that a transition from LIBOR to an alternative will not result in financial market disruptions, significant increases in benchmark rates, or borrowing costs to borrowers, any of which could have an adverse effect on our business, results of operations and financial condition.

Changes in exchange rates could adversely affect our financial condition and results of operations

We are affected by fluctuations in the value of the currencies in which we conduct operations compared to the currencies in which our indebtedness is denominated. Such changes result in exchange losses or gains on our net indebtedness and accounts payable. In 2020, we reported net foreign exchange losses of Ps.65.4 billion.

In addition, currency fluctuations between the Mexican peso and the currencies of our non-Mexican subsidiaries affect our results as reported in Mexican pesos. Currency fluctuations are expected to continue to affect our financial income and expense.

46

Major depreciation of the currencies in which we conduct operations could cause governments to impose exchange controls that would limit our ability to transfer funds between us and our subsidiaries

Major depreciation of the currencies in which we conduct operations may result in disruption of the international foreign exchange markets and may limit our ability to transfer or to convert such currencies into U.S. dollars and other currencies for the purpose of making timely payments of interest and principal on our indebtedness. The government of Argentina has adopted exchange controls and restrictions on the movement of capital and has taken other measures in response to capital flight and the significant depreciation of the Argentine peso. In addition, although the Mexican government does not currently restrict, and for many years has not restricted, the right or ability of Mexican or foreign persons or entities to convert Mexican pesos into U.S. dollars or to transfer other currencies out of Mexico, it could institute restrictive exchange rate policies in the future. Similarly, the Brazilian government may impose temporary restrictions on the conversion of Brazilian reais into foreign currencies and on the remittance to foreign investors of proceeds from investments in Brazil whenever there is a serious imbalance in Brazil’s balance of payments or a reason to foresee a serious imbalance.

Developments in other countries may affect the market price of our securities and adversely affect our ability to raise additional financing

The market value of securities of Mexican companies is, to varying degrees, affected by economic and market conditions in other countries, including the United States, the European Union (the “EU”) and emerging market countries. Although economic conditions in such countries may differ significantly from economic conditions in Mexico, investors’ reactions to developments in any of these other countries may have an adverse effect on the market value of securities of Mexican issuers. Crises in the United States, the EU and emerging market countries may diminish investor interest in securities of Mexican issuers. This could materially and adversely affect the market price of our securities, and could also make it more difficult for us to access the capital markets and finance our operations in the future on acceptable terms or at all.

47

The following table sets forth our capital structure as of March 31, 2021.

SERIES	NUMBER OF SHARES (MILLIONS)		PERCENT OF COMBINED CAPITAL			A SHARES AND AA SHARES(1)
L Shares		45,448		68.3	%			–
(no par value)
AA Shares		20,578		30.9	%		97.6	%
(no par value)
A Shares		515		0.8	%		2.4	%
(no par value)
Total(2)		66,541		100	%		100	%

(1) The AA Shares and A Shares of América Móvil, together, are entitled to elect a majority of our directors. Holders of L Shares are entitled to limited voting rights under our bylaws. See “Bylaws—Voting Rights” under this Part IV.

(2) Figures in the table may not recalculate exactly due to rounding.

According to reports of beneficial ownership of our shares filed with the SEC, the Slim Family may be deemed to control us through their interests in a Mexican trust that holds AA Shares and L Shares for their benefit (the “Family Trust”), their interest in Inversora Carso, S.A. de C.V., including its subsidiary Control Empresarial de Capitales, S.A. de C.V. and their direct ownership of our shares. See “Management—Directors” and “Management—Executive Committee” under Part V and “Related Party Transactions” under this Part IV of this annual report.

The following table identifies owners of more than 5.0% of any series of our shares as of March 31, 2021. Except as described in the table below and the accompanying notes, we are not aware of any holder of more than 5.0% of any series of our shares. Figures below do not include L Shares that would be held by each shareholder upon conversion of AA Shares or A Shares, as provided for under our bylaws. See “Management—Share Ownership of Directors and Senior Management” under Part V of this annual report.

SHAREHOLDER	SHARES OWNED (MILLIONS)		PERCENT OF CLASS(1)
AA SHARES:
Family Trust(2)		10,894		52.9%
Inversora Carso(3)		4,381		21.3%
Carlos Slim Helú		1,879		9.1%
L SHARES:
Inversora Carso(3)		6,020		13.2%
Family Trust(2)		5,998		13.2%
Carlos Slim Helú		3,072		6.8%
BlackRock, Inc.(4)		2,466		5.4%

(1) Percentage figures are based on the number of shares outstanding as of March 31, 2021.

(2) The Family Trust is a Mexican trust that holds AA Shares and L Shares for the benefit of members of the Slim Family. In addition to shares held by the Family Trust, members of the Slim Family, including Carlos Slim Helú, directly own an aggregate of 3,558 million AA Shares and 9,570 million L Shares representing 17.3% and 21.1%, respectively, of each series. According to beneficial reports filed with the SEC, none of these members of the Slim Family, other than Carlos Slim Helú, individually directly own more than 5.0% of any class of our shares.

(3) Includes shares owned by subsidiaries of Inversora Carso. Based on beneficial ownership reports filed with the SEC, Inversora Carso is a Mexican sociedad anón- ima de capital variable and may be deemed to be controlled by the Slim Family.

(4) Based on beneficial ownership reports filed with the SEC.

As of March 31, 2021, 15.7% of the outstanding L Shares were represented by L Share ADSs, each representing the right to receive 20 L Shares, and 99.98% of the L Share ADSs were held by 6,532 registered holders with addresses in the United States. As of such date, 37.2% of the A Shares were held in the form of A Share ADSs, each representing the right to receive 20 A Shares, and 99.9% of the A Share ADSs were held by 3,215 registered holders with addresses in the United States. Each A Share may be exchanged at the option of the holder for one L Share.

We have no information concerning the number of holdings or holders with registered addresses in the United States that hold:

• AA Shares;

• A Shares not represented by ADSs; or

• L Shares not represented by ADSs.

50

Our subsidiaries purchase materials or services from a variety of companies that may be deemed for certain purposes to be under common control with us, including Telesites, Grupo Carso and Grupo Financiero Inbursa and their respective subsidiaries.

These services include insurance and banking services provided by Grupo Financiero Inbursa and its subsidiaries. In addition, we sell products in Mexico through the Sanborns and Sears Operadora México, S.A. de C.V. store chains. Some of our subsidiaries also purchase network construction services and materials from subsidiaries of Grupo Carso. Our subsidiaries purchase these materials and services on terms

no less favorable than they could obtain from unaffiliated parties, and would have access to other sources if our related parties ceased to provide them on competitive terms.

We and Telesites have entered into an agreement providing for site usage fees, annual price escalations and fixed annual charges that permit us to install a pre-determined amount of equipment at the Telesite towers and provide for incremental fee payments if capacity use is exceeded. The principal economic terms of the agreement conform to the reference terms published by Telesites and approved by IFT.

Note 6 to our audited consolidated financial statements included in this annual report provides additional information about our related party transactions.

We regularly pay cash dividends on our shares. The table below sets forth the nominal amount of dividends paid per share on each date indicated, in Mexican pesos and translated into U.S. dollars at the exchange rate reported by Banco de México, as published in the Official Gazette, for each of the respective payment dates.

PAYMENT DATE	PESOS PER SHARE			DOLLARS PER SHARE
November 9, 2020		Ps.	0.19	U.S.$	0.0092
July 20, 2020		Ps.	0.19	U.S.$	0.0085
November 11, 2019		Ps.	0.17	U.S.$	0.0090
July 15, 2019		Ps.	0.18	U.S.$	0.0095
November 12, 2018		Ps.	0.16	U.S.$	0.0080
July 16, 2018		Ps.	0.16	U.S.$	0.0085
November 13, 2017		Ps.	0.15	U.S.$	0.0079
July 17, 2017		Ps.	0.15	U.S.$	0.0085
November 14, 2016		Ps.	0.14	U.S.$	0.0068
July 15, 2016		Ps.	0.14	U.S.$	0.0076

On April 26, 2021 our shareholders approved a cash dividend of Ps.0.40 per share, of which Ps.0.20 per share is payable on July 19, 2021 and Ps.0.20 is payable on November 8, 2021.

The declaration, amount and payment of dividends by América Móvil is determined by majority vote of the holders of AA Shares and A Shares, generally on the recommendation of the Board of Directors, and depends on our results of operations, financial condition, cash requirements, future prospects and other factors considered relevant by the holders of AA Shares and A Shares.

Our bylaws provide that holders of AA Shares, A Shares and L Shares participate equally on a per-share basis in dividend payments and other distributions, subject to certain non-material preferential dividend rights of holders of L Shares.

51

Our shares and ADSs are listed on the following markets:

SECURITY	STOCK EXCHANGE	TICKER SYMBOL
L Shares	Mexican Stock Exchange—Mexico City	AMXL
L Share ADSs	New York Stock Exchange—New York	AMX
A Shares	Mexican Stock Exchange—Mexico City	AMXA
A Share ADSs	New York Stock Exchange—New York	AMOV

We are a Sociedad Anónima Bursátil de Capital Variable organized under Mexican law. For a description of our AA Shares, A Shares and L Shares, and a brief summary of certain significant provisions in our current bylaws and Mexican law, see “Description of Securities Registered Under Section 12 of the Exchange Act,” filed as Exhibit 2.1 with this annual report. For a description of our Board of Directors, Executive and Audit and Corporate Practices Committees and External Auditor, see “Management” under Part V of this annual report.

52

We periodically repurchase at our discretion our L Shares and A Shares on the open market pursuant to guidelines approved by our Board of Directors, using funds up to an amount authorized by our shareholders specifically for the repurchase of L Shares and A Shares. In our 2021 annual ordinary shareholders’ meeting, our shareholders authorized an allocation of Ps.25 billion to repurchase L Shares and A Shares from April 2021 to April 2022.

The following tables set out information concerning purchases of our L Shares by us and our affiliated purchasers in 2020. We did not repurchase our L Shares other than through the share repurchase program, and we did not repurchase any A Shares.

PERIOD	TOTAL NUMBER OF SHARES  PURCHASED(1)		AVERAGE PRICE PER SHARE		TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS		APPROXIMATE MEXICAN PESO VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS(2)
January 2020		5,650,000		Ps. 15.34		5,650,000		Ps. 2,664,468,912
February 2020		2,200,000		16.06		2,200,000		2,629,333,277
March 2020		-		-		-		2,629,333,277
April 2020		11,000,000		13.64		11,000,000		5,930,090,256
May 2020		19,975,000		14.99		19,975,000		5,632,443,872
June 2020		22,000,000		15.26		22,000,000		5,298,718,225
July 2020		22,500,000		14.64		22,500,000		4,971,126,848
August 2020		21,000,000		14.14		21,000,000		4,675,982,377
September 2020		32,000,000		13.49		32,000,000		4,246,872,865
October 2020		43,000,000		13.60		43,000,000		3,665,445,685
November 2020		80,000,000		14.40		80,000,000		2,519,753,255
December 2020		106,282,651		14.48		106,282,651		989,494,709
Total L Shares		365,607,651				365,607,651

(1) This includes purchases by us and our affiliated purchasers in 2020.

(2) This is the approximate peso amount available at the end of the period for purchases of both L Shares and A Shares pursuant to our share repurchase program.

53

The following summary contains a description of certain Mexican federal and U.S. federal income tax consequences of the acquisition, ownership and disposition of L Shares, A Shares, L Share ADSs or A Share ADSs, but it does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a decision to purchase, hold or sell shares or ADSs.

This discussion does not constitute, and should not be considered as, legal or tax advice to holders. The discussion is for general information purposes only and is based upon the federal tax laws of Mexico (including the Mexican Income Tax Law (Ley del Impuesto sobre la Renta) and the United States in effect on the date of this annual report, including the Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion and the protocols thereto between the United States and Mexico currently in force (together, the “Tax Treaty”) and the agreement between the United States and Mexico concerning the exchange of information with respect to tax matters. The Tax Treaty is subject to change, and such changes may have retroactive effects. Holders of shares    or ADSs should consult their own tax advisors as to the Mexican, U.S. or other tax consequences of the purchase, ownership and disposition of shares or ADSs, including, in particular, the effect of any foreign, state or local tax laws.

MEXICAN TAX CONSIDERATIONS

The following is a general summary of the principal consequences under the Mexican Income Tax Law and the rules and regulations thereunder, as currently in effect, of an investment in shares or ADSs by a holder that is not a resident of Mexico and that will not hold shares or ADSs or a beneficial interest therein in connection with the conduct of a trade or business through a permanent establishment in Mexico (a “nonresident holder”).

For purposes of Mexican taxation, the definition of residence is highly technical and residence arises in several situations. Generally, an individual is a resident of Mexico if he or she has established his or her home or center of vital interests in Mexico, and a corporation is considered a resident if it has its place of effective management in Mexico. However, any determination of residence should take into account the particular situation of each person or legal entity.

If a legal entity or an individual is deemed to have a permanent establishment in Mexico for Mexican tax purposes, all income attributable to that permanent establishment will be subject to Mexican income taxes, in accordance with applicable tax laws.

This summary does not purport to be a comprehensive description of all the Mexican tax considerations that may be relevant to a decision to purchase, own or dispose of the shares. In particular, this summary (i) does not describe any tax consequences arising under the laws of any state, locality, municipality or taxing jurisdiction other than certain federal laws of Mexico and (ii) does not address all of the Mexican tax consequences that may be applicable to specific holders of the shares, including a holder:

• whose shares were not acquired through the Mexican Stock Exchange or other markets authorized by the Ministry of Finance and Public Credit (Secretaría de Hacienda y Crédito Público) or the Mexican Federal Tax Code;

• of shares or ADSs that control us;

• that holds 10.0% or more of our shares;

• that is part of a group of persons for purposes of Mexican law that controls us (or holds 10.0% or more of our shares); or

• that is a resident of Mexico or is a corporation resident in a tax haven (as defined by the Mexican Income Tax Law).

Tax Treaties

Provisions of the Tax Treaty that may affect the taxation of certain U.S. holders (as defined below) are summarized below.

The Mexican Income Tax Law has established procedural requirements for a nonresident holder to be entitled to benefits under any of the tax treaties to which Mexico is a party, including on dispositions and dividends. These procedural requirements include, among others, the obligation to (i) prove tax treaty residence, (ii) file tax calculations made by an authorized certified public accountant or an informational tax statement, as the case may be, and (iii) appoint representatives in Mexico for taxation purposes. Parties related to the issuer may be subject to additional procedural requirements.

Payment of Dividends

Dividends, either in cash or in kind, paid with respect to L Shares, A Shares, L Share ADSs or A Share ADSs will generally be subject to a 10.0% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2014).

54

Taxation of Dispositions

The tax rate on income realized by a nonresident holder from a disposition of shares through the Mexican Stock Exchange is generally 10.0%, which is applied to the net gain realized on the disposition. This tax is payable through withholding made by intermediaries. However, such withholding does not apply to a nonresident holder who certifies that the holder is resident in a country with which Mexico has entered into an income tax treaty.

The sale or other transfer or disposition of shares not carried out through the Mexican Stock Exchange and not held in the form of ADSs will be subject to a 25% tax rate in Mexico, which is applicable to the gross proceeds realized from the sale. Alternatively, a nonresident holder may, subject to certain requirements, elect to pay taxes on the net gain realized from the sale of shares at a rate of 35%.

The sale or disposition of ADSs through securities exchanges or markets recognized under the Mexican federal tax code (which includes the NYSE) by nonresidents who are residents of a country with which Mexico has entered into an income tax treaty is not subject to income tax in Mexico under the current tax rules. The tax treatment of such transfer of ADSs by nonresidents who are also not residents of a country with which Mexico has entered into an income tax treaty is not clear under the current Mexican tax rules.

Pursuant to the Tax Treaty, gains realized by a U.S. resident that is eligible to receive benefits pursuant to the Tax Treaty from the sale or other disposition of shares or ADSs, even if the sale or disposition is not carried out under the circumstances described in the preceding paragraphs, will not be subject to Mexican income tax, provided that the gains are not attributable to a permanent establishment or a fixed base in Mexico, and further provided that such U.S. holder owned less than 25% of the shares representing our capital stock (including ADSs), directly or indirectly, during the 12-month period preceding such disposition. U.S. residents should consult their own tax advisors as to their possible eligibility under the Tax Treaty.

Gains and gross proceeds realized by other nonresident holders that are eligible to receive benefits pursuant to other income tax treaties to which Mexico is a party may be exempt from Mexican income tax, in whole or in part. Non-U.S. holders should consult their own tax advisors as to their possible eligibility under such treaties.

Other Mexican Taxes

A nonresident holder generally will not be liable for estate, inheritance or similar taxes with respect to its holdings of shares or ADSs; provided, however, that gratuitous transfers of shares or ADSs may, in certain circumstances, result in the imposition of a Mexican tax upon the recipient.

There are no Mexican stamp, issue registration or similar taxes payable by a nonresident holder with respect to shares or ADSs.

U.S. FEDERAL INCOME TAX

CONSIDERATIONS

The following is a summary of certain U.S. federal income tax consequences to U.S. holders (as defined below) of the acquisition, ownership and disposition of shares or ADSs. The summary does not purport to be a comprehensive description of all of the tax consequences of the acquisition, ownership or disposition of shares or ADSs. The summary applies only to U.S. holders that will hold their shares or ADSs as capital assets and does not apply to special classes of U.S. holders, such as dealers in securities or currencies, holders with a functional currency other than the U.S. dollar, holders of 10.0% or more of our shares measured by vote or value (whether held directly or through ADSs or both), tax-exempt organizations, banks, insurance companies or other financial institutions, holders liable for the alternative minimum tax, securities traders electing to account for their investment in their shares or ADSs on a mark-to-market basis, entities that are treated for U.S. federal income tax purposes as partnerships or other pass-through entities or equity holders therein and persons holding their shares or ADSs in a hedging transaction or as part of a straddle or conversion transaction.

For purposes of this discussion, a “U.S. holder” is a holder of shares or ADSs that is:

• a citizen or resident of the United States of America,

• a corporation (or other entity taxable as a corporation) organized under the laws of the United States of America or any state thereof or

• otherwise subject to U.S. federal income taxation on a net income basis with respect to the shares or ADSs.

Each U.S. holder should consult such holder’s own tax advisor concerning the overall tax consequences to it of the ownership or disposition of shares or ADSs that may arise under foreign, state and local laws.

Treatment of ADSs

In general, a U.S. holder of ADSs will be treated as the owner of the shares represented by those ADSs for U.S. federal income tax purposes. Deposits or withdrawals of shares by U.S. holders in exchange for ADSs will not result in the realization of gain or loss for U.S. federal income tax purposes. U.S. holders that withdraw any shares should consult their own tax advisors regarding the treatment of any foreign currency gain or loss on any pesos received in respect of such shares.

55

Taxation of Distributions

In general, a U.S. holder will treat the gross amount of distributions we pay, without reduction for Mexican withholding tax, as dividend income for U.S. federal income tax purposes to the extent of our current and accumulated earnings and profits. Because we do not expect to maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that distributions paid to U.S. holders generally will be reported as dividends. In general, the gross amount of any dividends will be includible in the gross income of a U.S. holder as ordinary income on the day on which the dividends are received by the U.S. holder, in the case of shares, or by the depositary, in the case of ADSs.

Dividends will be paid in pesos and will be includible in the income of a U.S. holder in a U.S. dollar amount calculated by reference to the exchange rate in effect on the date that they are received by the U.S. holder, in the case of shares, or by the depositary, in the case of ADSs (regardless of whether such pesos are in fact converted into U.S. dollars on such date). If such dividends are converted into U.S. dollars on the date of such receipt, a U.S. holder generally should not be required to recognize foreign currency gain or loss in respect of the dividends. U.S. holders should consult their own tax advisors regarding the treatment of foreign currency gain or loss, if any, on any pesos received by a U.S. holder or depositary that are converted into U.S. dollars on a date subsequent to receipt. Dividends paid by us will not be eligible for the dividends-received deduction allowed to corporations under the U.S. Internal Revenue Code of 1986, as amended (the “Code”).

The amount of Mexican tax withheld generally will give rise to a foreign tax credit or deduction for U.S. federal income tax purposes. Dividends generally will constitute “passive category income” for purposes of the foreign tax credit. The foreign tax credit rules are complex. U.S. holders should consult their own tax advisors with respect to the implications of those rules for their investments in our shares or ADSs.

Subject to certain exceptions for short-term and hedged positions, the U.S. dollar amount of dividends received by an individual with respect to the shares or ADSs will be subject to taxation at reduced rates if the dividends are “qualified dividends.” Dividends paid on the shares or ADSs will be treated as qualified dividends if (i) (A) the shares or ADSs are readily tradable on an established securities market in the United States or (B) we are eligible for the benefits of a comprehensive tax treaty with the United States which the U.S. Treasury determines is satisfactory for purposes of this provision and which includes an exchange of information program, and (ii) we were not, in the year prior to the year in

which the dividend was paid, and are not, in the year in which the dividend is paid, a passive foreign investment company (“PFIC”). The ADSs are listed on the NYSE, and will qualify as readily tradable on an established securities market in the United States so long as they are so listed. In addition, the U.S. Treasury has determined that the Tax Treaty meets the requirements for reduced rates of taxation, and we believe we are eligible for the benefits of the Tax Treaty. Based on our audited consolidated financial statements and relevant market data, we believe that we were not treated as a PFIC for U.S. federal income tax purposes with respect to the 2019 and 2020 taxable years. In addition, based on our audited consolidated financial statements and our current expectations regarding the value and nature of our assets, the sources and nature of our income and relevant market data, we do not anticipate becoming a PFIC for the 2021 taxable year. Holders of shares or ADSs should consult their own tax advisors regarding the availability of the reduced dividend tax rate in the light of their own particular circumstances.

Distributions of additional shares or ADSs to U.S. holders with respect to their shares or ADSs that are made as part of a pro rata distribution to all of our shareholders generally will not be subject to U.S. federal income tax.

Taxation of Dispositions

A U.S. holder generally will recognize capital gain or loss on the sale or other disposition of the shares or ADSs in an amount equal to the difference between the U.S. holder’s basis in such shares or ADSs (in U.S. dollars) and the amount realized on the disposition (in U.S. dollars, determined at the spot rate on the date of disposition if the amount realized is denominated in a foreign currency). Gain or loss recognized by a U.S. holder on such sale or other disposition generally will be long-term capital gain or loss if, at the time of disposition, the shares or ADSs have been held for more than one year. Long-term capital gain recognized by a U.S. holder that is an individual is taxable at reduced rates. The deductibility of a capital loss is subject to limitations.

Gain, if any, realized by a U.S. holder on the sale or other disposition of the shares or ADSs generally will be treated as U.S. source income for U.S. foreign tax credit purposes. Consequently, if a Mexican withholding tax is imposed on the sale or disposition of the shares, a U.S. holder that does not receive significant foreign source income from other sources may not be able to derive effective U.S. foreign tax credit benefits in respect of such Mexican taxes. U.S. holders should consult their own tax advisors regarding the application of the foreign tax credit rules to their investment in, and disposition of, the shares or ADSs.

56

Information Reporting and Backup Withholding

Dividends on, and proceeds from the sale or other disposition of, the shares or ADSs paid to a U.S. holder generally may be subject to the information reporting requirements of the Code and may be subject to backup withholding unless the holder:

• establishes that it is an exempt recipient, if required, or

• provides an accurate taxpayer identification number on a properly completed Internal Revenue Service Form W-9 and certifies that no loss of exemption from backup withholding has occurred.

The amount of any backup withholding from a payment to a holder will be allowed as a credit against the U.S. holder’s U.S. federal income tax liability and may entitle such holder to a refund, provided that certain required information is timely furnished to the Internal Revenue Service.

U.S. Tax Consequences for Non-U.S. holders

DISTRIBUTIONS. A holder of shares or ADSs that is, with respect to the United States, a foreign corporation or a nonresident alien individual (a “non-U.S. holder”) will generally not be subject to U.S. federal income or withholding tax on dividends received on shares or ADSs, unless such income is effectively connected with the conduct by the holder of a U.S. trade or business.

DISPOSITIONS. A non-U.S. holder of shares or ADSs will not be subject to U.S. federal income or withholding tax on gain realized on the sale of shares or ADSs, unless:

• gain is effectively connected with the conduct by the holder of a U.S. trade or business or

• in the case of gain realized by an individual holder, the holder is present in the United States for 183 days or more in the taxable year of the sale and certain other conditions are met.

INFORMATION REPORTING AND BACKUP WITHHOLDING. Although non-U.S. holders generally are exempt from backup withholding, a non-U.S. holder may be required to comply with certification and identification procedures in order to establish its exemption from information reporting and backup withholding.

57

DIRECTORS

Our Board of Directors has broad authority to manage our company. Our bylaws provide for the Board of Directors to consist of between five and 21 directors and allow for the election of an equal number of alternate directors. Directors need not be shareholders. A majority of our directors and a majority of the alternate directors must be Mexican citizens and elected by Mexican shareholders.

A majority of the holders of the AA Shares and A Shares voting together elect a majority of the directors and alternate directors, provided that any holder or group of holders of at least 10.0% of the total AA Shares and A Shares is entitled to name one director and one alternate director. Two directors and two alternate directors, if any, are elected by a majority vote of the holders of L Shares. Each alternate director may attend meetings of the Board of Directors and vote in the absence of the corresponding director. Directors and alternate directors are elected or reelected at each annual general meeting of shareholders and each annual ordinary special meeting of holders of L Shares. In accordance with the Mexican Securities Market Law (Ley del Mercado de Valores), the determination as to the independence of our directors is made by our shareholders, though the CNBV may challenge this determination. Pursuant to our bylaws and the Mexican Securities Market Law, at least 25.0% of our directors must be independent. In order to have a quorum for a meeting of the Board of Directors, a majority of those present must be Mexican nationals.

At the annual shareholders’ meetings held on April [26], 2021, the current members of the Board of Directors, the Executive Committee and the Audit and Corporate Practices Committee were reelected, and the Corporate Secretary and the Corporate Pro Secretary were reappointed, with 11 directors elected by the AA Shares and A Shares voting together and two directors elected by the L Shares. 54% of the members of the Board of Directors are independent and 8% are women.

Our bylaws provide that the members of the Board of Directors are elected for a term of one year. Pursuant to Mexican law, members of the Board continue in their positions after the expiration of their terms for up to an additional 30-day period if new members are not elected. Furthermore, in certain circumstances provided under the Mexican Securities Market Law, the Board of Directors may

elect temporary directors who then may be elected or replaced at the shareholders’ meetings.

The names and positions of the members of the Board reelected or elected for the first time at the 2021 annual general shareholders’ meeting, their year of birth, and information concerning their committee membership and principal business activities outside América Móvil are set forth below:

Directors elected by holders of Series AA and Series A Shares:

CARLOS SLIM DOMIT
Chairman of the Board and the Executive Committee
Born:	1967
First elected:	2011
Term expires:	2022
Principal occupation:	Chairman of the Board of América Móvil
Other directorships:	Chairman of the Board of Grupo Carso and its affiliates
Business experience:	Business administration; Chief Executive Officer of Sanborn Hermanos

PATRICK SLIM DOMIT
Vice Chairman and Member of the Executive Committee
Born:	1969
First elected:	2004
Term expires:	2022
Principal occupation:	Vice Chairman of our Board of Directors
Other directorships:	Director of Grupo Carso and its affiliates
Business experience:	Business administration; Chief Executive Officer of Grupo Carso and Vice President of Commercial Markets of Telmex

DANIEL HAJJ ABOUMRAD
Director and Member of the Executive Committee
Born:	1966
First elected:	2000
Term expires:	2022
Principal occupation:	Chief Executive Officer of América Móvil
Other directorships:	Director of Grupo Carso and Telmex
Business experience:	Business administration; Chief Executive Officer of Compañía Hulera Euzkadi

60

LUIS ALEJANDRO SOBERÓN KURI
Director
Born:	1960
First elected:	2000
Term expires:	2022
Principal occupation:	Chief Executive Officer and Chairman of the Board of Serinem México (a subsidiary of Corporación Interamericana de Entretenimiento
Other directorships:	Director of CIE; Director of Grupo Financiero Citibanamex
Business experience:	Business administration; Various positions at CIE

FRANCISCO MEDINA CHÁVEZ
Director
Born:	1956
First elected:	2018
Term expires:	2022
Principal occupation:	Chief Executive Officer and Chairman of Grupo Fame, and Chairman of Grupo Altozano
Other directorships:	Director of Banamex Citigroup México and Grupo Chedraui
Business experience:	Real estate; Director of Aeromexico and Mitsui Mexico

ERNESTO VEGA VELASCO
Director, Chairman of the Audit and Corporate Practices Committee
Born:	1937
First elected:	2007
Term expires:	2022
Principal occupation:	Retired. Member of the board of directors and audit and corporate practices, planning and finance and evaluation and compensation committees of certain companies.
Other directorships:	Director of Kuo and its affiliates, Inmuebles Carso and its affiliates, and Industrias Peñoles
Business experience:	Accounting and business administration; Various positions in Desc Group, including Corporate Vice-President

RAFAEL MOISÉS KALACH MIZRAHI
Director and Member of the Audit and Corporate Practices Committee
Born:	1946
First elected:	2012
Term expires:	2022
Principal occupation:	Chairman and Chief Executive Officer of Grupo Kaltex
Other directorships:	Director of Grupo Carso and its affiliates
Business experience:	Accounting and business administration; Various positions in Grupo Kaltex

ANTONIO COSÍO PANDO
Director
Born:	1968
First elected:	2015
Term expires:	2022
Principal occupation:	Vice President of Grupo Hotelero las Brisas, Compañía Industrial Tepeji del Río, and Bodegas de Santo Tomás
Other directorships:	Director of Grupo Carso and its affiliates, Corporación Actinver, and Grupo Aeromexico
Business experience:	Engineer; Various positions in Grupo Brisas and Compañía Industrial Tepeji del Río, S.A. de C.V.

ARTURO ELÍAS AYUB
Director
Born:	1966
First elected:	2011
Term expires:	2022
Principal occupation:	Head of Strategic Alliances, Communications and Institutional Relations of Telmex; Chief Executive Officer of Fundación Telmex
Other directorships:	Director of Grupo Carso and its affiliates, Dine and its affiliates, Grupo México Transportes and Grupo Gigante
Business experience:	Business administration; Chief Executive Officer of Sociedad Comercial Cadena, President of Pastelería Francesa (El Globo) and President of Club Universidad Nacional, A.C.

OSCAR VON HAUSKE SOLÍS
Director
Born:	1957
First elected:	2011
Term expires:	2022
Principal occupation:	Chief Fixed-line Operations Officer of América Móvil
Other directorships:	Member of Telekom Austria’s Supervisory Board
Business experience:	Accounting and business administration; Chief Executive Officer of Telmex Internacional, Chief Systems and Telecommunications Operators Officer of Telmex and member of KPN’s supervisory board

VANESSA HAJJ SLIM
Director
Born:	1997
First elected:	2018
Term expires:	2022

61

Directors elected by holders of Series L Shares:

PABLO ROBERTO GONZÁLEZ GUAJARDO
Director and Member of the Audit and Corporate Practices Committee
Born	1967
First elected:	2007
Term expires:	2022
Principal occupation:	Chief Executive Officer of Kimberly Clark de México
Other directorships:	Director of Kimberly Clark de México, Grupo Sanborns and Grupo Lala
Business experience:	Law and business administration; Various positions in the Kimberly Clark Corporation and Kimberly Clark de México

DAVID IBARRA MUÑOZ
Director
Born:	1930
First elected:	2000
Term expires:	2022
Principal occupation:	Retired
Other directorships:	Director of Grupo Carso and its affiliates, and Grupo Mexicano de Desarrollo
Business experience:	Economist; Chief Executive Officer of Nacional Financiera, S.N.C., and served as minister of Finance and Public Credit of Mexico

Our 2021 annual ordinary general shareholders’ meeting determined that the following directors are independent: Messrs. Ernesto Vega Velasco, Pablo Roberto González Guajardo, David Ibarra Muñoz, Antonio Cosío Pando, Rafael Moisés Kalach Mizrahi, Luis Alejandro Soberón Kuri and Francisco Medina Chávez.

Alejandro Cantú Jiménez, our General Counsel, serves as Corporate Secretary and Rafael Robles Miaja as Corporate Pro-Secretary.

Patrick Slim Domit and Carlos Slim Domit are brothers. Daniel Hajj Aboumrad and Arturo Elías Ayub are brothers- in-law of Patrick Slim Domit and Carlos Slim Domit. Vanessa Hajj Slim is the daughter of Daniel Hajj Aboumrad.

EXECUTIVE COMMITTEE

Our bylaws provide that the Executive Committee may generally exercise the powers of the Board of Directors, with certain exceptions. In addition, the Board of Directors is required to consult the Executive Committee before deciding on certain matters set forth in the bylaws, and the Executive Committee must provide its views following a request from the Board of Directors, the Chief Executive Officer or the

Chairman of the Board of Directors. If the Executive Committee is unable to make a recommendation within ten calendar days, or if a majority of the Board of Directors or any other corporate body duly acting within its mandate determines in good faith that action cannot be deferred until the Executive Committee makes a recommendation, the Board of Directors is authorized to act without such recommendation. The Executive Committee may not delegate its powers to special delegates or attorneys-in-fact.

The Executive Committee is elected from among the directors and alternate directors by a majority vote of the holders of common shares (AA Shares and A Shares). The majority of its members must be Mexican citizens and elected by Mexican shareholders. The current members of the Executive Committee are Messrs. Carlos Slim Domit, Patrick Slim Domit and Daniel Hajj Aboumrad. See “Major Shareholders” under Part IV of this annual report.

AUDIT AND CORPORATE PRACTICES COMMITTEE

Our Audit and Corporate Practices Committee is comprised of independent members of the Board of Directors, as determined by our shareholders pursuant to the Mexican Securities Market Law and as defined under Rule 10A-3 under the Exchange. The Audit and Corporate Practices Committee consists of Messrs. Ernesto Vega Velasco (Chairman), Rafael Moisés Kalach Mizrahi and Pablo Roberto González Guajardo. The mandate of the Audit and Corporate Practices Committee is to assist our Board of Directors in overseeing our operations and establish and monitor procedures and controls in order to ensure that the financial information we distribute is useful, appropriate and reliable and accurately reflects our financial position. In particular, the Audit and Corporate Practices Committee is required to, among other things, (i) call shareholders’ meetings and recommend items to be included on the agenda, (ii) advise the Board of Directors on internal control procedures, related party transactions that are outside the ordinary course of our business, succession plans and compensation structures of our key executives, (iii) select and monitor our auditors, (iv) discuss with our auditors the procedures for the preparation of the annual financial statements and the accounting principles to the annual and the interim financial statements and (v) obtain from our auditors a report that includes a discussion of the critical accounting policies used by us, any alternative accounting treatments for material items that have been discussed by management with our auditors and any other written communications between our auditors and management.

62

The Company is required to make public disclosure of any Board action that is inconsistent with the opinion of the Audit and Corporate Practices Committee. In addition, pursuant to our bylaws, the Audit and Corporate Practices Committee is in charge of our corporate governance functions under the Mexican securities laws and regulations and is required to submit an annual report to the Board of Directors with respect to our corporate and audit practices. The Audit and Corporate Practices Committee must request the opinions of our executive officers for purposes of preparing this annual report.

SENIOR MANAGEMENT

The names, responsibilities and prior business experience of our senior officers are as follows:

DANIEL HAJJ ABOUMRAD
Chief Executive Officer
Appointed:	2000
Business   experience:	Director of Telmex; Chief Executive Officer of Compañía Hulera Euzkadi, S.A. de C.V.

CARLOS JOSÉ GARCÍA MORENO ELIZONDO
Chief Financial Officer
Appointed:	2001
Business   experience:	General Director of Public Credit at the Ministry of Finance and Public Credit; Managing Director of UBS Warburg; Associate Director of Financing at Petróleos Mexicanos (Pemex); Member of Telekom Austria’s Supervisory Board; Member of KPN Supervisory Board

ALEJANDRO CANTÚ JIMÉNEZ
General Counsel
Appointed:	2001
Business   experience:	Member of Telekom Austria’s Supervisory Board; Attorney at Mijares, Angoitia, Cortés y Fuentes, S.C.

OSCAR VON HAUSKE SOLÍS
Chief Fixed-line Operations Officer
Appointed:	2010
Business   experience:	Chief Executive Officer of Telmex Internacional; Chief Systems and Telecommunications Officer of Telmex; Head of Finance at Grupo Condumex; Director of Telmex, Telmex Internacional, Empresa Brasileira de Telecomunicaçőes S.A. (“Embratel”), and Net Serviços de Comunicaçăo S.A. (“Net Serviços”); Member of Telekom Austria’s Supervisory Board

ANGEL ALIJA GUERRERO
Chief Wireless Operations Officer
Appointed:	2012
Business   experience:	Various positions in América Móvil

AUDIT COMMITTEE FINANCIAL EXPERT

Our Board of Directors has determined that Ernesto Vega Velasco qualifies as an “audit committee financial expert,” and Mr. Vega Velasco is independent under the definition of independence applicable to us under the rules of the NYSE.

COMPENSATION OF DIRECTORS AND SENIOR MANAGEMENT

The aggregate compensation paid to our directors (including compensation paid to members of our Audit and Corporate Practices Committee) and senior management in 2020 was approximately Ps.6.3 million and Ps.79.6 million, respectively. None of our directors is a party to any contract with us or any of our subsidiaries that provides for benefits upon termination of employment. We do not provide pension, retirement or similar benefits to our directors in their capacity as directors. Our executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees, and we do not separately set aside, accrue or determine the amount of our costs that is attributable to executive officers.

SHARE OWNERSHIP OF DIRECTORS AND SENIOR MANAGEMENT

Carlos Slim Domit, Chairman of our Board of Directors, holds 647 million (or 3.1%) of our AA Shares and 1,567 million (or 3.4%) of our L Shares directly. Patrick Slim Domit, Vice Chairman of our Board of Directors, holds 323 million (or 1.6%) of our AA Shares and 859 million (or 1.9%) of our L Shares directly. In addition, according to beneficial ownership reports filed with the SEC, Patrick Slim Domit and Carlos Slim Domit are beneficiaries of a trust that owns shares of the Company. See “Major Shareholders” under Part IV of this annual report. Except as described above, according to the information provided to us by our directors and members of senior management, none of our directors or executive officers is the beneficial owner of more than 1.0% of any class of our capital stock.

63

Our corporate governance practices are governed by our bylaws, the Mexican Securities Market Law and the regulations issued by the CNBV. We also comply with the Mexican Code of Best Corporate Practices (Código de Mejores Prácticas Corporativas). On an annual basis, we file a report with the Mexican Banking and securities Commission and the Mexican Stock Exchange regarding our compliance with the Mexican Code of Best Corporate Practices.

The table below discloses the significant differences between our corporate governance practices and those required for U.S. companies under the NYSE listing standards.

NYSE STANDARDS	OUR CORPORATE GOVERNANCE PRACTICES
DIRECTOR INDEPENDENCE
Majority of board of directors must be independent. §303A.01. “Controlled companies” are exempt from this requirement. A controlled company is one in which more than 50.0% of the voting power is held by an individual, group or another company, rather than the public. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.	Pursuant to the Mexican Securities Market Law, our shareholders are required to appoint a board of directors of no more than 21 members, 25% of whom must be independent. Certain persons are per se non-independent, including insiders, control persons, major suppliers and any relatives of such persons. In accordance with the Mexican Securities Market Law, our shareholders’ meeting is required to make a determination as to the independence of our directors, though such determination may be challenged by the CNBV. There is no exemption from the independence requirement for controlled companies. Currently, the majority of our Board of Directors is independent.
EXECUTIVE SESSIONS
Non-management directors must meet at regularly scheduled executive sessions without management. Independent directors should meet alone in an executive session at least once a year. §303A.03.	Our non-management directors have not held executive sessions without management in the past, and they are not required to do so.
NOMINATING/CORPORATE GOVERNANCE COMMITTEE
Nominating/corporate governance committee composed entirely of independent directors is required. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.04. “Controlled companies” are exempt from these requirements. §303A.00. As a controlled company, we would be exempt from this requirement if we were a U.S. issuer.	Mexican law requires us to have one or more committees that oversee certain corporate practices, including the appointment of directors and executives. Under the Mexican Securities Market Law, committees overseeing certain corporate practices must be composed of independent directors. However, in the case of controlled companies, such as ours, only a majority of the committee members must be independent. Currently, we do not have a nominating committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is composed of independent directors, oversees our corporate practices, including the compensation and appointment of directors and executives.
COMPENSATION COMMITTEE
Compensation committee composed entirely of independent directors is required, which must evaluate and approve executive officer compensation. The committee must have a charter specifying the purpose, duties and evaluation procedures of the committee. §303A.02(a)(ii) and §303A.05. “Controlled companies” are exempt from this requirement. §303A.00.	We currently do not have a compensation committee, and we are not required to have one. Our Audit and Corporate Practices Committee, which is comprised solely of independent directors, evaluates and approves the compensation of management (including our CEO) and directors.
AUDIT COMMITTEE
Audit committee satisfying the independence and other requirements of Rule 10A-3 under the Ex- change Act and the additional requirements under the NYSE standards is required. §§303A.06 and 303A.07.	We have an audit and corporate practices committee of three members. Each member of the Audit and Corporate Practices Committee is independent, as independence is defined under the Mexican Securities Market Law, and also meets the independence requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934, as amended. Our Audit and Corporate Practices Committee operates primarily pursuant to (1) a written charter adopted by our Board of Directors, which assigns to the Committee responsibility over those matters required by Rule 10A-3, (2) our bylaws and (3) Mexican law. For a more detailed description of the duties of our Audit and Corporate Practices Committee, see “Management” under Part V of this annual report.

64

NYSE STANDARDS	OUR CORPORATE GOVERNANCE PRACTICES
EQUITY COMPENSATION PLANS
Equity compensation plans and all material revisions thereto require shareholder approval, subject to limited exemptions. §§303A.08 and 312.03.	Shareholder approval is expressly required under Mexican law for the adoption or amendment of an equity compensation plan. Such plans must provide for similar treatment of executives in comparable positions.
SHAREHOLDER APPROVAL FOR ISSUANCE OF SECURITIES
Issuances of securities (1) that will result in a change of control of the issuer, (2) that are to a related party or someone closely related to a related party, (3) that have voting power equal to at least 20.0% of the outstanding common stock voting power before such issuance or (4) that will increase the number of shares of common stock by at least 20.0% of the number of outstanding shares before such issuance requires shareholder approval. §§312.03(b)-(d).	Mexican law requires us to obtain shareholder approval for any issuance of equity securities. Under certain circumstances, however, we may sell treasury stock subject to the approval of our Board of Directors.
CODE OF BUSINESS CONDUCT AND ETHICS
Corporate governance guidelines and a code of business conduct and ethics are required, with disclosure of any waiver for directors or executive officers. The code must contain compliance standards and procedures that will facilitate the effective operation of the code. §303A.10.	We have adopted a code of ethics, which applies to all of our directors and executive officers and other personnel. For more information, see “Corporate Governance—Code of Ethics” under Part V of this annual report.
CONFLICTS OF INTEREST
Determination of how to review and oversee related party transactions is left to the listed company. The audit committee or comparable body, however, could be considered the forum for such review and oversight. §314.00. Certain issuances of common stock to a related party require shareholder approval. §312.03(b).	In accordance with Mexican law, an independent audit committee must provide an opinion to the board of directors regarding any transaction with a related party that is outside of the ordinary course of business, which must be approved by the board of directors. Pursuant to the Mexican Securities Market Law, our Board of Directors may establish certain guidelines regarding related party transactions that do not require specific board approval.
SOLICITATION OF PROXIES
Solicitation of proxies and provision of proxy materials is required for all meetings of shareholders. Copies of such proxy solicitations are to be provided to NYSE. §§402.01 and 402.04.	We are not required to solicit proxies from our shareholders. In accordance with Mexican law and our bylaws, we inform shareholders of all meetings by public notice, which states the requirements for admission to the meeting. Under the deposit agreement relating to our ADSs, holders of our ADSs receive notices of shareholders’ meetings and, where applicable, instructions on how to instruct the depositary to vote at the meeting. Under the deposit agreement relating to our ADS, we may direct the voting of any ADS as to which no voting instructions are received by the depositary, except with respect to any matter where substantial opposition exists or that materially and adversely affects the rights of holders.

65

A) DISCLOSURE CONTROLS AND PROCEDURES

We carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures as of December 31, 2020. Based upon our evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

B) MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Under the supervision and with the participation of our management, including our Chief Executive Officer, Chief Financial Officer and other personnel, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control—Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of the inherent limitations in all control systems, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Based on our evaluation under the framework in Internal Control—Integrated Framework, our management concluded that our internal control over financial reporting was effective as of December 31, 2020.

Mancera, S.C. (“Mancera”), a member practice of Ernst & Young Global Limited, an independent registered public accounting firm, our independent auditor, issued an attestation report on our internal control over financial reporting on April 28, 2021.

C) ATTESTATION REPORT OF THE REGISTERED PUBLIC ACCOUNTING FIRM

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of América Móvil, S.A.B. de C.V.

Opinion on Internal Control Over Financial Reporting

We have audited América Móvil, S.A.B. de C.V. and subsidiaries’ internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, América Móvil, S.A.B. de C.V. and subsidiaries (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2020 and 2019, the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of three years in the period ended December 31, 2020, and the related notes, and our report dated April 28, 2021 expressed an unqualified opinion thereon.

66

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company´ s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definitions and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future

periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ MANCERA, S.C.

Mexico City, Mexico

April 28, 2021

D) CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There has been no change in our internal control over financial reporting during 2020 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

67

Our Corporate Sustainability Executive Committee defines and oversees the implementation of our overall strategy to improve our performance on sustainability matters.

By incorporating sustainability in our daily decision-making, we seek to foster greater efficiencies and operate with the highest sense of social responsibility and environmental care, strengthening our market leadership while contributing to economic, social, and cultural development in the communities where we operate.

Our corporate sustainability reports are available on our website at www.americamovil.com.

68

Our Code of Ethics codifies the ethical principles that govern our business and promotes, among other things, honest and ethical conduct, full, fair, accurate, timely and understandable disclosure in reports and documents that we file with, or submit to, the SEC, compliance with applicable governmental laws, rules and regulations, the prompt internal reporting of violations of the Code of Ethics and accountability for adherence to the Code of Ethics. Our Code of Ethics applies to all of our officers, senior management, directors and employees.

The full text of our Code of Ethics may be found on our website at www.americamovil.com.

69

MEXICO

Legal Framework

The legal framework for the regulation of telecommunications and broadcasting services is based on constitutional amendments passed in June 2013, the Federal Law on Telecommunications and Broadcasting (Ley Federal de Telecomunicaciones y Radiodifusión) enacted in July 2014 as amended and the Federal Law on Economic Competition (Ley Federal de Competencia Económica) enacted in May 2014 as amended.

Under the framework, the IFT may determine whether there is a “preponderant economic agent” in the telecommunications sector, based on number of customers, traffic or network capacity. In 2014, the IFT determined that an “economic interest group” consisting of us and our Mexican operating subsidiaries (Telcel, Telmex and Telnor) as well as Grupo Carso and Grupo Financiero Inbursa, constitutes the “preponderant economic agent” in the telecommunications sector, based on a finding that we serve more than half of the customers in Mexico, as measured by the IFT on a national basis.

The IFT has authority to impose on any preponderant economic agent a special regulatory regime. The special regime is referred to as “asymmetric” regulation because it applies to one sector participant and not to the others. Pursuant to the IFT’s determination that we are part of a group constituting a preponderant economic agent, we are subject to extensive asymmetric regulations in the telecom sector, which impacts our Mexican fixed-line and wireless businesses. See “—Asymmetric Regulation of the Preponderant Economic Agent” and “—Functional Separation of Telmex and Telnor Wholesale Services” under this Part VI. This legal framework has had a substantial impact on our business and operations in Mexico.

Principal Regulatory Authorities

The IFT is an autonomous authority that regulates telecommunications and broadcasting. It is headed by seven commissioners appointed by the President, and ratified by the Senate, from among candidates nominated by an evaluation committee. The IFT has authority over the application of legislation specific to the telecommunications and broadcasting sectors, and also over competition legislation as it applies to those sectors. The Mexican Ministry of Communications and Transportation (Secretaría de Comunicaciones y Transportes) retains regulatory authority over a few specific public policy matters.

The Mexican government has certain powers in its relations with concessionaires, including the right to take over the management of an operator’s networks, facilities and personnel in cases of imminent danger to national security, public order or the national economy, natural disasters and public unrest, as well as to ensure continuity of public services.

Telecommunications operators are also subject to regulation by the Federal Consumer Bureau (Procuraduría Federal del Consumidor) under the Federal Consumer Protection Law (Ley Federal de Protección al Consumidor), which regulates publicity, quality of services and information required to be provided to consumers.

Asymmetric Regulation of the Preponderant Economic Agent

We are currently subject to extensive specific asymmetric measures based on the IFT’s determination that we, our Mexican operating subsidiaries (Telcel, Telmex and Telnor) and certain affiliates, constitute the preponderant economic agent in the telecommunications sector, and along with Telesites, Red Nacional Ultima Milla S.A.P.I. de C.V. and Red Ultima Milla Del Noroeste S.A.P.I. de C.V. are compelled to comply with such asymmetric regulation. Below is a summary of what we believe are the most important measures applicable to us.

• Interconnection Rates. The Federal Law on Telecommunications and Broadcasting provides that we are not permitted to charge other carriers for the termination services we provide in our networks. These provisions were declared unconstitutional by the Mexican Supreme Court (Suprema Corte de Justicia de la Nación) in August 2017 with respect to wireless services and in April 2018 with respect to fixed services. As a result, the IFT ruled that, as of January 1, 2018, in the case of Telcel, and as of January 1, 2019, in the case of Telmex, we are able to charge other carriers for terminating calls to our networks at asymmetric rates established by the IFT. We continue to pay such carriers for their interconnection services in accordance with the fixed and mobile rates set by the IFT.

• Sharing Of Wireless Infrastructure and Services. We must provide other carriers access to (i) passive infrastructure, including towers, sites, ducts and rights of way, (ii) elements of our network that allow other carriers and mobile virtual network operators (“MVNOs”) to use our network or resell those services we provide to our customers and (iii) domestic roaming services; in each case, pursuant to IFT pre-approved reference terms (ofertas públicas de referencia). If we cannot reach an agreement with other carriers or MVNOs, our rates may be determined by the IFT using a long-run average incremental costs methodology or, in the case of MVNOs, a “retail-minus” methodology.

For mobile services, the IFT has the right to verify, through a replicability test, that carriers using our regulated wholesale services can match our end user rates.

• Sharing of Fixed Infrastructure and Services. We must provide other carriers access to (i) passive infrastructure, including towers, sites, telephone poles, ducts, manholes and rights of way, (ii) elements of our network that allow

72

other carriers to use our network or resell those services we provide to our customers and (iii) our dedicated links (either local or long distance). Rates for this access are determined by the IFT using a long-run average incremental cost methodology.

For fixed services, the IFT has the right to verify, through a replicability test, that carriers using our regulated wholesale services can match our end user rates.

• Local Loop Unbundling. We must offer other carriers access to elements of our local loop network separately on terms and conditions (including rates) pre-approved by the IFT. The IFT has also ordered the legal and functional separation of the provision of wholesale regulated fixed services related to local loop unbundling, local dedicated links and shared access/use of passive infrastructure related with the local loop network. See “Functional Separation of Telmex and Telnor Wholesale Services” under this Part VI.

• Certain Obligations Relating to Retail Services. Rates for the provision of telecommunications services to our customers are subject to the IFT’s prior authorization.

We are also subject to certain obligations and restrictions relating to the sale of our services and products; one such obligation includes unlocking mobile devices for our customers and regulations on the sale end financing at mobile devices.

• Content. We are subject to specific limitations on acquisitions of exclusive transmission rights to “relevant” content (contenidos audiovisuales relevantes), as determined from time to time by the IFT, including the Mexican national team soccer matches, the opening and closing ceremonies and certain matches of the FIFA World Cup, the semifinal and final matches of the Liga MX soccer tournament and the Super Bowl.

• Reference Terms. Every year we must submit, for IFT’s approval, a proposal of the reference terms for all wholesale services that are subject to asymmetric regulation for the following year. Once approved, we must publish and offer the regulated wholesale services, in the terms approved by IFT.

IFT’s Biannual Review of Asymmetric Regulation

The IFT reviewed the measures in 2020 and determined, among other things, to modify and add new asymmetrical regulations for mobile and fixed services.

The measures are transitory and may be amended by the IFT, or terminated if the IFT determines effective competition conditions exist in the telecommunications sector or if we cease to be considered a preponderant economic agent. The IFT reviews the impact of the asymmetrical measures every

two years and may modify or eliminate measures or set forth new measures. In March 2017, the IFT issued a resolution that modified and added asymmetrical regulations for mobile and fixed services, including the legal and functional separation of Telmex and Telnor wholesale services, among other measures.

We have challenged the determination that we are a preponderant economic agent and the asymmetric regulations in court. These challenges were denied. We have also challenged further resolutions by IFT concerning the review of certain asymmetrical regulations. However, IFT’s determinations are not suspended while legal challenges against them are resolved.

Functional Separation of Telmex and Telnor Wholesale Services

In March 2018, we received notice of an IFT resolution directed to the Company setting forth the terms under which we are required to separate the provision of wholesale regulated fixed services by Telmex and Telnor (the “Separation Plan”). As of the date of this annual report, we have complied with all milestones of the Separation Plan including the following:

• New Companies. Telmex and Telnor established new subsidiaries, Red Nacional Ultima Mila and Red Ultima Mila Del Noroeste (the “New Companies”), to provide local wholesale services related to the elements of the access network, including local access dedicated links, as well as those services related to passive infrastructure associated with the access network, such as ducts, poles and rights of way. The main features of the New Companies are as follows:

• Price of Services. The prices and terms of the services provided by the New Companies are subject to IFT regulation, which could affect the viability and financial requirements of the New Companies.

• Corporate Governance. The New Companies have their own corporate governance, including: (i) a board of directors with at least seven members, of which a majority (including the Chairman) is independent; (ii) a Chief Executive Officer and senior officers appointed by the boards of directors, different and independent from those of our Mexican concessionaire subsidiaries; (iii) an independent external auditor; (iv) an Audit Committee chaired by an independent member of the board of directors; and (v) a Regulatory Compliance Committee entirely composed of independent members. The bylaws of the New Companies were approved by the IFT. Independence for these purposes is used as defined under Mexican Securities Market Law.

73

• Personnel. Subject to the discussion under “Services Through Union Employees” below, the New Companies have personnel necessary to provide wholesale services required by the Separation Plan.

• Assets. The New Companies have the resources necessary to comply with their obligations and provide services.

• Systems and Procedures. The New Companies have their own procedures, operating and management systems that are independent from those of Telmex and Telnor.

• Branding. The New Companies have their own branding distinct from América Móvil’s concessionaire subsidiaries. The brands must be dissociated from those of Telmex and Telnor by March 2022.

• Principal Offices. The New Companies have their own principal offices distinct from those of América Móvil’s concessionaire subsidiaries.

• Services Through Union Employees. Certain employees that are members of a labor union provide services to the New Companies. These employees are functionally independent from Telmex and Telnor, and are under the operational control of the New Companies, however, their labor contracts remain with Telmex and Telnor.

• Wholesale Unit. Telmex and Telnor established a business unit to provide the remaining wholesale services to other concessionaires, including interconnection, co-location for interconnection, inter-city and international long-distance dedicated links, resale of telephone lines, broadband and bundles, as well as certain passive infrastructure services, including shared use of towers.

The implementation of the Separation Plan has been complex, and some features (including those related with the recent IFT revision of Asymmetrical Regulation resolutions) remain uncertain and may require further development. As a result, we are not yet able to identify all the possible consequences, but some of the consequences could have a material adverse impact on us.

We have challenged the resolution in the Mexican courts. However, legal challenges will not suspend the implementation of the Separation Plan and final determinations are pending.

Substantial Market Power Investigations

In 2007, the Federal Antitrust Commission (Comisión Federal de Competencia Económica, or “Cofeco”) initiated two substantial market power investigations against Telcel and determined that Telcel had substantial market power in the mobile termination services market and in the nationwide

wireless voice and data services market. Telcel filed challenges against both decisions, and a final resolution of these challenges is still pending. If upheld, these decisions would allow the IFT to impose additional requirements as to rates, quality of service and information, among other matters. The Preponderance regime has regulated all of these matters.

In 2007, Cofeco initiated various investigations to evaluate whether Telmex and its subsidiary Telnor have substantial power in the markets for termination, origination, transit and wholesale dedicated-link circuits. Cofeco issued final resolutions concluding that Telmex and Telnor have substantial power in all four markets, which were challenged by Telmex and Telnor. The challenges related to each one of these markets have been denied, effectively upholding Cofeco’s findings. Consequently, the IFT may impose specific tariff requirements or other special regulations with respect to the matters for which the challenges were denied, such as additional requirements regarding disclosure of information or quality of service. The Preponderance regime has regulated all of these matters.

In the case of the market for wholesale dedicated-link leasing, the IFT’s predecessor, Cofetel, published an agreement in the Official Gazette, establishing requirements regarding tariffs, quality of service and information for dedicated-link circuits. Telmex and Telnor have filed petitions for relief against such resolutions, which are still pending. The regulation that could arise from these investigations has been already implemented by the IFT through the special regulatory regime for preponderant agents. However, given the uncertainty of the IFT’s actions, we are not able to identify all possible consequences and as a result an adverse resolution could have an impact on the Company’s future revenues in this market.

Concessions

Under the current legal framework, a carrier of public telecommunications networks, such as Telcel or Telmex, must operate under a concession. The IFT is an autonomous federal agency that grants new or extends existing concessions, which may only be granted to a Mexican citizen or corporation that has agreed to the concession terms and may not be transferred or assigned without the approval of the IFT. There are three types of concessions:

• NETWORK CONCESSIONS. Telcel, Telmex and its subsidiary Telnor hold network concessions, granted under the previous regulatory framework, to provide specified types of services. Their ability to migrate to the new regime of unified concessions and, consequently, to provide any and all telecommunications and broadcasting services, is subject to conditions, as described under “Migration of Concessions and Additional Services” below.

74

• SPECTRUM CONCESSIONS. Telcel holds multiple concessions, granted under both the previous and current regulatory frameworks, to provide wireless services that utilize frequencies of radio-electric spectrum. These concessions have terms of 15 to 20 years and may be extended for an additional term of equal length.

• UNIFIED CONCESSION. Each of the New Companies holds a unified concession granted to provide only wholesale telecommunications services. These concessions were issued in March 2020 and have a term of 30 years and may be extended for an additional term of equal length.

Termination of Concessions

Mexican legislation provides that under certain circumstances, some assets of a concessionaire may be acquired by the federal government upon termination of these concessions.

There is no specific guidance or precedent for applying these provisions, so the scope of assets covered, the compensation to the concessionaire and the procedures to be followed would depend on the type of concession, the type of assets and the interpretation of applicable legislation by the competent authorities at the time.

Migration of Concessions and Additional Services

The new legislative framework established the unified concession (concesión única), which allows the holder to provide all types of telecommunications and broadcasting services, and a regime under which an existing concession can be migrated to the new unified concession at the end of its term or upon request by the concession holder. A unified concession has a term of up to 30 years, extendable for up to an equal term. Also, under this new framework a current concession may be modified to add services not previously contemplated therein.

However, as a result of our preponderant economic agent status, Telcel, Telmex and Telnor are subject to additional conditions for the migration to a unified concession or the addition of a service, such as Pay TV, to a current concession, including in certain cases (i) payment of any new concession fee to be determined by the IFT, (ii) compliance with current requirements under the network concession, the 2013 constitutional amendments, the 2014 legislation and any additional measures imposed by the IFT on the preponderant economic agent and (iii) such other requirements, terms and conditions as the IFT may establish in the concession itself. We expect the process of migration or additional services to be lengthy and complex. Consequently, Telcel, Telmex and Telnor may not be able to provide certain additional services, such as Pay TV and broadcasting, in the near term.

Telcel’s Concessions

Telcel operates under several different network and spectrum concessions covering particular frequencies and regions, holding an average of 280.96 MHz of capacity in Mexico’s nine regions in the 850 MHz, 1900 MHz,1.7/2.1 GHz, 2.5 GHz and 3.5 GHz bands. The following table summarizes Telcel’s concessions.

FREQUENCY	COVERAGE AREA	INITIAL DATE	TERMINATION DATE
Band A (1900 MHz)	Nationwide	Sep. 1999	Oct. 2039
Band D (1900 MHz)	Nationwide	Oct. 1998	Oct. 2038
Band B (850 MHz)	Regions 1, 2, 3	Aug. 2011	Aug. 2026
Band B (850 MHz)	Regions 4, 5	Aug. 2010	Aug. 2025
Band B (850 MHz)	Regions 6, 7, 8	Oct. 2011	Oct. 2026
Band B (850 MHz)	Region 9	Oct. 2015	Oct. 2030
Band F (1900 MHz)	Nationwide	Apr. 2005	Apr. 2025(1)
Bands A and B (1.7/2.1 GHz)	Nationwide	Oct. 2010	Oct. 2030
Bands H, I and J (1.7/2.1 GHz)	Nationwide	May 2016	Oct. 2030
Band 7 (2.5 GHz)	88% of the population	Jul. 2017	Sep. 2020(1) – Nov. 2028 – Oct. 2040 – May 2041
Band 3.5 GHz(2)	Nationwide	Oct. 2020(3)	Oct. 2038 and 2040

(1) A request for extension has already been filed with the IFT.

(2) On December 18, 2020, Telcel filed a formal request with the IFT to include mobile service in these concessions.

(3) The term of this concession is currently in force and was extended by IFT in favor of Telmex until 2040 and afterwards it was assigned by Telmex to Telcel as of March 11, 2020. Concessions acquired from Axtel were extended by the IFT until 2038.

On August 21, 2020, Claro TV, S.A. de C.V. filed before the IFT a notice of merger with Claro Sat, S.A. de C.V. Likewise, on December 18, 2020, Duono, S.A de C.V., filed before the IFT a notice of merger with Integración de Servicios Empresariales y Corporativos, S.A. de C.V. (ISEC). As result of both the Claro TV, S.A. de C.V. and Duono, S.A de C.V. mergers, these corporations will be the license holders.

Concession Fees

All of Telcel’s concessions granted or renewed on or after January 1, 2003 are required to pay annual fees for the use and exploitation of radio spectrum bands. The amounts payable are set forth by the annual Federal Fees Law (Ley Federal de Derechos) and vary depending on the relevant region and radio spectrum band.

Telmex’s Concessions

Telmex’s concession was granted in 1976 and is currently set to expire in 2026. In December 2016, the IFT granted Telmex a 30-year extension of this concession, which will become effective in 2026 and will be valid until 2056. The new terms of this concession will be issued in early 2023.

75

Telmex’s subsidiary, Telnor, holds a separate concession, which covers one state and two municipalities in northwestern Mexico and will expire in 2026. The IFT also granted Telnor a 30-year extension of its concession, which will be effective in 2026 and will be valid until 2056. The material terms of Telnor’s concession are similar to those of Telmex’s concession.

In addition, Telmex currently holds concessions for the use of frequencies to provide point-to-point and point-to-multipoint transmission in 10.5, 15 and 23 GHz bands.

In 2018, Telmex was notified of a resolution issued by the IFT, through which the IFT imposed a fine of Ps.2.5 billion derived from an alleged breach in 2013 and 2014 of certain minimum quality of service goals for dedicated link services. Telmex has exercised all legal remedies challenging such resolution and a final resolution is pending.

Rates for Wireless Service

Wireless services concessionaires are generally free to establish the prices they charge customers for telecommunications services. Wireless rates are not subject to a price cap or any other form of price regulation. The interconnection rates concessionaires charge other operators are also generally established by agreement between the parties and, if the parties cannot agree, may be imposed by the IFT, subject to certain guidelines, cost models and criteria. The IFT publishes at the end of the year the rates they would impose in the event of a dispute, eliminating all incentives for a negotiation among the parties. The establishment of interconnection rates has resulted, and may in the future result, in disputes between carriers and with the IFT.

As a result of the preponderance determination, Telcel’s retail prices are subject to pre-approval by the IFT before they can take effect.

The IFT is also authorized to impose specific rate requirements on any carrier that is determined by the IFT to have substantial market power under the Federal Antitrust Law (Ley Federal de Competencia Económica) and the 2014 legislation. For more information on litigation related to the Federal Antitrust Law and the 2014 legislation, see “—Substantial Market Power Investigations” under this Part VI.

Rates for Fixed Service

Telmex’s concessions subject its rates for basic retail telephone services in any period, including installation, monthly rent, measured local-service and long-distance service, to a ceiling on the price of a “basket” of such services, weighted to reflect the volume of each service provided by Telmex during the preceding period. Telmex is required to file a survey with the IFT every four years with its projections of

units of operation for basic services, costs and prices. Telmex is free to determine the structure of its own rates, with the exception of domestic long-distance rates, which were eliminated in 2015 under the 2014 legislation, and of the residential fixed-line rates, which have a cap based on the long-run average incremental cost. As a result of the preponderance determination, Telmex’s retail prices are subject to pre-approval by the IFT before they can take effect.

The price ceiling varies directly with the Mexican National Consumer Price Index (Indice Nacional de Precios al Consumidor), allowing Telmex to raise nominal rates to keep pace with inflation (minus a productivity factor set for the telecommunications industry), subject to consultation with the IFT. Telmex has not raised its nominal rates for many years. Under Telmex’s concession, the price ceiling is also adjusted downward periodically to pass on the benefits of Telmex’s increased productivity to its customers. The IFT sets a periodic adjustment for every four-year period to permit Telmex to maintain an internal rate of return equal to its weighted average cost of capital.

In addition, basic retail telephone services, as well as broadband services and “calling party pays” charges, are subject to a separate price ceiling structure based on productivity indicators. In each case, Telmex is required to submit a survey on productivity indicators to the IFT every two years, including a total factor productivity. The IFT establishes the productivity factor that will apply over the next two years, and, based on this, the IFT will approve the customer prices before they can take effect.

Prices for Telmex’s wholesale services are established by the IFT based on the long-run average incremental cost model methodology.

BRAZIL

Legal Framework and Principal Regulatory Authorities

The Brazilian Telecommunications Law (Lei Geral das Telecomunicações Brasileiras) provides the framework for telecommunications regulation. The primary telecommunications regulator in Brazil is the Telecommunications Agency (Agência Nacional de Telecomunicações, or “Anatel”), which has the authority to grant concessions and licenses in connection with telecommunications services and the use of orbits, except broadcasting, and to adopt regulations that are legally binding on telecommunications services providers.

The Brazilian Congress has approved an updated legislation to modernize the current concession-based model to an authorization-based model. The updated law brings the possibility of allowing fixed-line concessionaires, such as

76

Claro Brasil, to provide services under an authorization rather than a concession, as long as certain investment-related obligations are met. Under the new legislation, it is possible to extend the current concessions, as well as radio frequency licenses and orbital positions, for more than one period. The legislation also permits the possibility of a secondary market for trading cellphone frequencies. The legislation will be implemented by regulations promulgated by Anatel. We are currently evaluating the potential impact of this legislation on our operations.

Licenses

In 2014, we simplified our corporate structure, and our subsidiaries Embratel, Embratel Participações S.A. (“Embrapar”) and Net Serviços were merged into Claro Brasil, with all licenses previously granted to our subsidiaries transferred to Claro Brasil.

In 2018, subsidiary Star One merged into Claro Brasil. As a result, all Brazilian satellite operation rights previously granted to Star One were transferred under the same terms and conditions to Claro Brasil. The satellite operation rights (AMC-12) covering regions outside of Brazil were relinquished by Star One before the merger. In 2020, the satellite operation rights were transferred to Embratel Tysat Telecomunicações S.A. (“Claro TV”), after approval by Anatel.

In December 18, 2019, AMX announced the acquisition of 100% of the shares of Nextel Brazil and Sunbird Telecomunicações Ltda. (“Sundbird”), as well as its correspondent subsidiaries in Brazil. Nextel Brazil had authorizations to provide personal mobile services, specialized mobile services, multimedia communication services, paid fixed telephony services (national and international long-distance) and radiofrequency services in Brazil that were granted by Anatel. Sunbird had authorizations to provide specialized mobile services and radiofrequency services. Derived from the acquisition of Nextel Brazil and Sunbird by AMX, Anatel provided AMX with: (i) a term of 18 months to consolidate and cancel the overlapped authorizations granted in favor of Nextel Brazil and Sunbird; and (ii) a term of 2 months to adjust the radiofrequency thresholds. In 2020, the authorizations and radiofrequencies granted in favor of Nextel Brazil and Sunbird for specialized mobile services were waived. Also in 2020, Nextel’s PS licenses were transferred to Claro.

In 2019, the subsidiary Primesys was merged into Claro Brasil. As a result, service authorizations granted to Primesys were transferred under the same terms and conditions to Claro Brasil.

Our Brazilian subsidiaries hold licenses for the telecommunications services listed below and expect to continue acquiring spectrum if Anatel conducts additional

public auctions, although Claro Brazil, like all of its peer competitors, is subject to a cap on the additional spectrum it may acquire per frequency band.

SUBSIDIARY	LICENSE	TERMINATION DATE
Claro Brasil	Fixed Local Voice Services	Indefinite
	Domestic and International Long-Distance	2025
	Voice Services	Indefinite
	Personal Communication Services	Indefinite
	Data Services	Indefinite
	Cable TV Services	Indefinite
	Mobile Maritime Services	Indefinite
	Global Mobile Satellite Services	Indefinite
Claro TV	DTH TV Services	Indefinite
	Data Services	Indefinite
Americel S.A.	Data Services	Indefinite
Telmex do Brasil	Data Services	Indefinite
Nextel Brazil	Personal Communication Services	Indefinite
	Domestic and International Long-Distance	Indefinite
	Data Services	Indefinite

In addition, Claro TV has various orbital position authorizations for our satellite operations, which are set to expire between 2022 and 2033. Requests for extensions for 15 more years have been requested from Anatel. Claro TV also has radio frequency licenses to provide PCS, which are set to expire between 2022 and 2032. These grants were transferred from Claro Brasil to Claro TV in 2020, subsequent to Anatel’s approval.

Nextel Brazil has radio frequency licenses to provide PCS, which expire between 2026 and 2031.

Concessions

Claro Brasil holds two fixed-line concessions to provide domestic and international long-distance telephone services. The remaining telecommunications services provided by Claro Brasil are governed by a system of licenses instead of concession arrangements.

Concession Fees

Claro Brasil is required to pay a biennial fee equal to 2.0% of net revenues from wireless services, except for the final year of the 15 year term of its PCS authorizations, in which the fee equals 1.0% of net revenues from wireless services.

Claro Brasil is also required to pay a biennial fee during the term of its domestic and international long-distance concessions equal to 2.0% of the revenues from long- distance telephone services, net of taxes and social contributions, for the year preceding the payment.

77

Termination of Concessions

Our domestic and international long-distance fixed-line concessions provide that certain of our assets deemed “indispensable” for the provision of these services will revert to the Brazilian state upon termination of these concessions. Compensation for those assets would be their depreciated cost. See Note 17 to our audited consolidated financial statements included in this annual report.

Regulation of Rates

Anatel regulates rates (tariffs and prices) for all telecommunications services, except for fixed-line broadband services, Pay TV and satellite capacity rates, which are not regulated. In general, PCS license holders and fixed local voice services license-holders are authorized to increase basic plan rates annually. Domestic long-distance concession-holders may adjust rates annually only for inflation, provided that they give Anatel and the public advanced notice of such adjustments. Claro Brasil may set international long-distance and mobile rates freely, provided that it gives Anatel and the public advance notice.

Regulation of Wholesale Market Competition

In November 2012, Anatel approved the General Competition Plan (Plano Geral de Metas da Competição, or “PGMC”), a comprehensive regulatory framework aimed at increasing competition in the telecommunications sector. The PGMC imposes asymmetric measures upon economic groups determined by Anatel to have significant market power in any of the five wholesale markets in the telecommunications sector, on the basis of several criteria, including having over 20.0% of market share in the applicable market.

In 2012, Claro Brasil and three of its primary competitors were determined to have significant market power in the mobile wireless termination and national roaming markets. As a result, Claro Brasil was required to reduce mobile termination rates to 75.0% of the 2013 rates by February 2014, and to 50.0% of the 2013 rates by February 2015. In July 2014, Anatel established termination rates for mobile services applicable to operators with significant market power through 2019, based on a cost model, and in December 2018, Anatel established termination rates for mobile services applicable to operators with significant market power from 2020 to 2023. These termination rates were revised by Anatel in February 2020. Claro Brasil is also required to publish its reference roaming prices for voice, data and SMS on an annual basis, among other measures. These prices must be related to the Anatel reference values and need to be approved by Anatel before they can take effect. The approval of new prices by Anatel took place in January 2021.

In 2018, Anatel approved Claro Brasil’s most recent wholesale reference offers with respect to national roaming, telecommunications duct infrastructure, long-distance leased lines, high capacity transport above 34 Mbps, wireless networks interconnection, fixed network interconnection, internet network interconnection and internet links, which are reviewed and approved by Anatel on an annual basis. Anatel also reviews its determination of which operators have significant market power on a quadrennial basis. Anatel began its first review of all telecom operators in 2014 and published the most recent list of operators with significant market power for each of the relevant markets in 2018. In addition to the review, in 2018 Anatel changed some of the asymmetric measures applicable under the PGMC and added two new wholesale markets covering high capacity transport and fixed network interconnection. Anatel has determined that Claro Brasil has significant market power in eight wholesale markets.

Network Usage Fees and Fixed-Line Interconnection Rates

In July 2014, Anatel approved a resolution establishing the reference terms for fees charged by operators in connection with the use of their mobile network and leased lines and set a price cap on fees charged for fixed network usage by operators deemed to have significant market power. Such fees, based on costs of allocation services (coubicación), have been applicable since February 2016.

In December 2018, Anatel published reference values for fees network that are applicable from 2020 to 2023.

Fixed-line operators determined by Anatel to have significant market power in the local fixed-line market may freely negotiate interconnection rates, subject to a price cap established by Anatel.

Other Obligations

Under applicable law and our concessions, Claro Brasil has an obligation to (i) comply with certain coverage obligations to ensure universal access to its fixed-line voice services, (ii) contribute to the funding of the country’s transition from analogue to digital TV (due to the acquisition of the 700 MHz frequency), (iii) meet quality-of-service targets and (iv) comply with applicable telecommunications services consumer rights.

CADE Anti-Competition Proceeding

On March 9 2021, the General Superintendence at the Administrative Council for Economic Defense (“CADE”) issued a non-binding opinion recommending fines against Claro Brasil, Oi Móvel S.A. (“Oi”) and Telefônica Brasil S.A. (“Telefônica”, together Claro Brasil and Oi, the “Defendants”). The potential fines relate to a complaint filed by British

78

Telecom do Brasil (“BT”) against the Defendants alleging, among other things, that, in connection with a public bid, the Defendants (i) colluded to prevent competition between the leading players in the broadband internet services market in Brazil, which caused anti-competitive effects in the telecommunications sector and (ii) made it difficult for BT to participate in the bid through price discrimination tactics and by refusing to supply communication circuits (specifically, MPLS links) that were required for BT to participate in the bid. The case will be reviewed by CADE’s tribunal for a final ruling and CADE’s final decision may be challenged in judicial courts. We intend to challenge the final decision if it is not in our favor. The amount of monetary penalty recommended by the General Superintendence at CADE could be substantial, but we cannot reasonably estimate the range of possible loss related to the proceeding.

COLOMBIA

Legal Framework and Principal Regulatory Authorities

The Information and Communications Ministry (Ministerio de Tecnologías de la Información y las Comunicaciones, or “ICT Ministry”) and the Communications Regulatory Commission

(Comisión de Regulación de Comunicaciones, or “CRC”) are responsible for overseeing and regulating the telecommunications sector. The main audiovisual regulatory authorities in Colombia with respect to Pay TV services are the CRC, the ICT Ministry and the Industry and Commerce Superintendence (Superintendencia de Industria y Comercio, or “SIC”). Claro is also subject to supervision by other government entities responsible for enforcing other regulations, such as antitrust rules or those protecting consumer rights.

Concessions

Comunicación Celular S.A. (“Comcel”) is qualified to provide fixed and mobile services and was included in the registry of networks and services administered by the ICT Ministry. Such general authorization superseded all of Comcel’s former concession contracts, and, consequently, such former concessions were terminated.

As a result of the termination of Comcel’s former concessions, the ICT Ministry and Comcel began discussions with respect to the liquidation of the agreements governing those concessions. In light of the decision of the Colombian Constitutional Court (Corte Constitucional de Colombia) holding that certain laws limiting the reversion of assets of telecommunications providers did not apply to concessions granted prior to 1998 and, consequently, that reversion of assets under those earlier concessions would be governed by their contractual terms, the ICT Ministry obtained a domestic award ordering Comcel to revert assets under its earlier

concessions to the Colombian government. Comcel challenged such award and the Company filed an international arbitration claim against Colombia arising from Colombia’s measures.

Licenses and Permits

Comcel holds licenses to provide mobile services in the spectrum frequency bands shown in the table below.

FREQUENCY	BANDWIDTH	TERMINATION DATE
850 MHz	25 MHz	Mar. 2024
1900 MHz	10 MHz	Dec. 2039
	5 MHz	Sept. 2021
	15 MHz	Apr. 2024
2.5 GHz	30 MHz	Aug. 2023
	10 MHz	Feb. 2021(1)
	10 MHz	Mar. 2040
	10 MHz	Mar. 2040
	10 MHz	Mar. 2040
700 MHz	20 MHz	May 2040

(1) Refers to a temporary license, which we renew on an annual basis.

In 2013, Telmex Colombia S.A. obtained permission to provide Pay TV services under any available technology, pursuant to the ICT Ministry’s unified licensing system. On May 31, 2019, Telmex Colombia, S.A. merged into Comcel. The permission to provide Pay TV services granted in favor of Telmex Colombia, S.A. was simultaneously transferred to Comcel without modifications in connection with the merger. On July 30, 2019, Comcel’s permission to provide Pay TV was incorporated under Comcel’s general power to provide Pay TV granted to it under Law 1978 of 2019.

In 2017, the ICT Ministry issued a decree approving a higher cap on spectrum acquisitions by operators in low and high frequency bands. This new cap allows Comcel to participate in future spectrum auctions. The ICT Ministry has released its plan to conduct spectrum auctions in the 700 MHz, 1900 MHz and 2.5 GHz bands. The final resolution containing the auctions’ terms and conditions was published by the ICT Ministry during the fourth quarter of 2019. The auction took place on December 20, 2019. A subsidiary of Novator Partners LLP, a London-based private equity firm (the “Novator Subsidiary”), participated in the auction as a new competitor in the market. The Novator Subsidiary was granted a 20MHz license to operate in the 700MHz frequency band and three blocks of 10MHz for the 2,500MHz frequency band. Colombia Telecomunicaciones (Movistar) and Colombia Movil (Tigo) also participated in the auction. Tigo was granted a 40MHz license to operate in the 700MHz frequency band. Colombia Telecomunicaciones was not granted any licenses in the auction.

79

Subsequently, the Novator Subsidiary resigned and refused to exercise its rights under the license to operate one block of 10MHz for the 2,500MHz frequency band. As a consequence, on February 11, 2020, the ICT Ministry initiated an administrative proceeding to evaluate and decide on the effects caused by such resignation. Comcel was notified by the ICT Ministry and was considered an interested third party in the administrative proceeding. The ICT Ministry imposed a sanction of 42 billion Colombian Pesos, approximately U.S. $12.3 million against Partners as a result of the aforementioned administrative proceeding.

Asymmetric Charges

In January 2017, the Colombian government approved symmetrical access charges among established operators like Comcel, Movistar and Tigo. However, under current regulation, new market entrants continue to receive a higher interconnection rate than incumbent operators and pay lower national roaming fees, in both cases, for a limited period.

In 2017, the CRC issued a resolution updating the list of relevant telecommunication markets by adding the mobile services market (including bundled mobile voice and data services) and by also including the mobile service market in the list of relevant markets subject to ex-ante regulation. In connection with the mobile services market, on January 28, 2021, the CRC determined that COMCEL has a dominant position in the relevant mobile services market, but did not impose particular measures. COMCEL considers that the CRC did not take into account important elements in its determination, which COMCEL has challenged. A resolution is pending.

SOUTHERN CONE

ARGENTINA

The National Communications Agency (Ente Nacional de Comunicaciones, or “Enacom”) is the main telecommunications regulatory authority in Argentina and became operational in 2016.

Fixed and mobile services providers are prohibited from providing DTH technology, which is currently the fastest way to provide Pay TV services. In 2017, the Argentine government issued a decree allowing telecommunications providers, including AMX Argentina S.A. (“AMX Argentina”), to provide Pay TV services via cable within a limited number of territories as of January 2018 and to the rest of the country as of January 2019. AMX Argentina has obtained the permissions necessary to provide Pay TV services via cable in accordance with the decree.

AMX Argentina holds licenses in the 700 MHz, 900 MHz, 1700/2100 MHz (AWS), 1900 MHz and 2600 MHz frequency bands, some of which expire in 15 years and some of which

have no expiration date. Each license also contains certain coverage parameters, reporting and service requirements and provides Enacom a revocation right upon a material breach of the license terms.

All telecommunications providers in Argentina must contribute approximately 1.0% of their monthly revenues to finance the provision of telecommunications services in underserved areas and to underserved persons. All providers must also meet certain quality-of-service requirements.

In 2020, the government of Argentina issued a decree by which it declared information and communications technology (ICT) services and access to telecommunications networks, for and between licensees of ICT services, as essential and strategic public services in competition. It also established that Enacom is the competent authority to approve prices for ICT services and to establish regulations to that effect.

CHILE

The General Telecommunications Law (Ley General de Telecomunicaciones) establishes the legal framework for telecommunications services in Chile, including the regulation of concessions, permits, rates and interconnection. The main regulatory agency of the telecommunications sector is the Chilean Transportation and Communications Ministry (Ministerio de Transportes y Telecomunicaciones), which acts primarily through the Undersecretary of Telecommunications (Subsecretaría de Telecomunicaciones, “SUBTEL”).

Claro Chile S.A. (“Claro Chile”) holds concessions to provide mobile and fixed-line services in the 700MHz, 850 MHz, 1900 MHz, 2.6 GHz, 3.4 GHz and 5.8 GHz frequency bands. Except for the concession to provide services in the 850 MHz frequency, which has an indefinite termination date, the concessions to provide services in the 700 MHz, 1900 MHz, 2.6 GHz, 3.4 GHz and 5.8 GHz frequencies have termination dates that vary from 2027 to 2045. In 2020, Claro Chile received a 10 MHz license from Movistar to operate in the 1900 MHz frequency band.

Claro Chile also holds license to provide DTH technology services until 2024 and a license with an indefinite term to provide Pay TV services. In 2018, the Chilean Supreme Court (Corte Suprema de Justicia) issued a ruling requiring Claro to return 20 MHz of spectrum acquired through a band auction because Claro supposedly exceeded the limit of spectrum any given operator is permitted to hold. The return of such spectrum is currently being implemented before the Competition Court (Tribunal de Defensa de la Libre Competencia, or the “TDLC”). In addition, pursuant to the ruling, and in order to increase the maximum limit, SUBTEL initiated a review of such limit of spectrum through a regulatory proceeding. In 2020, the Chilean Supreme Court defined a higher cap for spectrum acquisitions by operators in low, medium low, medium and high frequency bands. This

80

new cap allows Claro Chile to participate in the current spectrum auctions.

Some of Claro Chile’s concessions impose additional requirements, such as coverage, reporting and service quality requirements. The Chilean Transportation and Communications Ministry is authorized to terminate any concession in the event of specified breaches under the terms of such concessions. Additionally, Claro Chile’s concession in the 700 MHz band imposes certain obligations to expand mobile and data services in rural areas. In 2017, the Undersecretary of Telecommunication approved Claro Chile’s expansion project in connection with its obligations under its concession in the 700 MHz band.

PARAGUAY

The National Telecommunications Commission of Paraguay (Comisión Nacional de Telecomunicaciones de Paraguay) is in charge of supervising the telecommunications industry in Paraguay. It is authorized to cancel licenses in the event of specified breaches of the terms of a license.

AMX Paraguay, S.A. (“AMX Paraguay”) holds licenses to operate in the 1900 MHz and the 1700/2100 MHz bands. The 1700/2100 MHz band is in the process of being renewed and is expected to be renewed in February 2021. AMX Paraguay also holds a nationwide internet access and data transmission license. In addition, AMX Paraguay holds licenses to provide DTH services and cable TV services. The DTH License is in the process of being renewed for another 5 years (until 2025). Additionally, in January 2018, AMX Paraguay participated in a spectrum auction and was awarded a license to provide telecommunications services in the 700 MHz band. In November 2018, the Telecommunications Commission of Paraguay granted the renewal of spectrum license in the 1900 MHz band. These licenses are renewable, subject to regulatory approval, and contain coverage, reporting and service requirements.

In November 2019, the Telecommunications Commission of Paraguay granted AMX Paraguay a license to provide internet access and data transmission services in the 3,500 MHz frequency band, effective until January 12, 2024

URUGUAY

The Regulatory Unit of Communications Services (Unidad Reguladora de Servicios de Comunicaciones) is in charge of the regulation of the telecommunications industry in Uruguay.

AM Wireless Uruguay, S.A. holds licenses to operate in the 1900 MHz, 1700/2100 MHz and 700 MHz frequency bands that expire in 2024, 2033, 2037, 2039 and 2045. Additionally, AM Wireless Uruguay S.A. holds an authorization to do a trial for 5G in the 26, 50 GHz – 26, 85 GHz frequency band that expires on July 2021. Telstar S.A. holds licenses to provide

international long-distance communications and international and national data services that have no expiration date.

The license initially granted to Flimay S.A. (“Flimay”) to provide DTH technology services in Uruguay has been contested by the government since 2012. In 2017, the executive branch of Uruguay held under a new ruling that Flimay does not have a valid license to provide DTH services in the country. Flimay requested this ruling be voided, but in February 2018, the executive branch of Uruguay, with support from the Administrative Court (TCA), requested the process be closed. As of the date of this annual report, a decision on Flimay’s appeal is pending.

ANDEAN REGION

ECUADOR

The primary regulatory authorities for our mobile and fixed-line operations are the National Telecommunications, Regulation and Control Agency (Agencia de Regulación y Control de las Telecomunicaciones, or “Arcotel”) and the Telecommunications and Information Society Ministry (Ministerio de Telecomunicaciones y Sociedad de la Información, or “Mintel”). Arcotel is responsible for the licensing and oversight of radio-electric spectrum use and telecommunications services provisions. Mintel is responsible for the promotion of equal access to telecommunications services.

The Telecommunications Law (Ley Orgánica de Telecomunicaciones), adopted in 2015, serves as the legal framework for telecommunications services. It established regulations for operators with significant market power and penalties based on their gross incomes as well as additional fees also based on an operator’s gross income, but that can vary depending on the size of their market share. Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) has been deemed to have significant market power in the advanced wireless services market, and as a result, such fee payments are made on a quarterly basis on the dates established by Arcotel.

Conecel paid to the Ecuadorian government U.S. $26.1 million, which corresponds to 3.0% of its wireless services revenues generated in the 2020. An arbitration proceeding to partially void the payment by Conecel of such fees was conducted and a decision in favor of the government was reached. Conecel has appealed this decision and, as of the date of this annual report, a decision of the Constitutional Court is pending.

Conecel holds concessions to operate in the 850MHz, 1900 MHz and AWS bands, which include concessions for PCS that expire in 2023. The PCS concession contains quality- of-service requirements for successful call completions, SMS delivery times, customer service, geographic coverage and other service conditions.

81

Conecel also holds licenses to provide internet value-added services, Pay TV Services (through DTH technology) and bearer services, expiring in 2021, 2023 and 2032, respectively.

Conecel, following the acquisition of Ecuador Telecom, S.A. in 2016, also holds a concession to offer fixed-line voice, public telephone and domestic and international long-distance wholesale services, as well as a license to provide Pay TV (through HFC technology) that expires in 2032 and 2031, respectively.

Recalculation of Concession Fees

Arcotel initiated several proceedings to recalculate the variable portion of the concession fees payable under Conecel’s concessions, which, as of the date of this annual report, is equivalent to 2.93% of Conecel’s annual subscriber base revenues, in addition to its contribution for Universal Service (Servicio Universal 1%). These recalculation proceedings with Arcotel remain ongoing.

In 2018, Conecel paid Arcotel U.S.$11.9 million based on its annual revenues for the 2015 period and was required to pay U.S.$13 million based on its annual revenues for the 2016 period.

For its Universal Service contribution, Conecel was required to pay U.S.$5 million for the 2015 period and U.S.$6 million for the 2016 period. Conocel obtained a judicial order that suspended the collection process for the 2015 and 2016 periods.

These recalculation proceedings mentioned in this section were disputed with Arcotel in arbitration. On April 17, 2020, the arbitration court issued its resolution which was favorable for Conecel. Arcotel was ordered to pay Conecel U.S. $ 32.4 million plus interests.

On January 15, 2021, the Provincial Court of Justice accepted the request to nullify the resolution issued by    the arbitration court, thereby declaring it null. However, the annulment of the resolution has not ended the dispute with Arcotel. A new arbitration court must issue a new resolution. At the same time Conecel will enforce its rights by presenting an Extraordinary Action for Protection before the Constitutional Court for the violation of its rights.

PERU

The Supervisory Agency for Private Investment in Telecommunication (Organismo Supervisor de la Inversión Privada en Telecomunicaciones, or “OSIPTEL”) is in charge of the regulation of the telecommunications industry in Peru. The Ministry of Transport and Communications (Ministerio de Transportes y Comunicaciones or “MTC”) grants concessions, permits and licenses. The Telecommunications Law (Decreto Supremo N° 013-93-TCC Ley de Telecomunicaciones), adopted in 1993, serves as the legal framework for telecommunications services.

América Móvil Perú, S.A.C. (“Claro Perú”) holds nationwide concessions to provide wireless, PCS, fixed-line, local wholesale, domestic and international long-distance, Pay TV services (through DTH and HFC technologies), public telephone and value-added services (including internet access). The concessions allow Claro Perú to operate on the 450 MHz, 700 MHz, 850 MHz, 1900 MHz, 3.5 GHz and 10.5 GHz bands. As part of Claro Perú’s acquisition of Olo del Perú S.A.C., TVS Wireless S.A.C. and their respective subsidiaries in 2016, Claro has a resale agreement with such companies to operate in certain regions on the 2.5 GHz band.

Spectrum reframing is the process conducted by the MTC to properly order the assignment of a frequency band in order to have continuous coverage nationwide and adequate bandwidth. The MTC issued the final decision on the spectrum reframing for the 2.5 Ghz band, granting 80 Mhz to TVS Wireless, S.A.C. (Lima and Callao) and Olo del Peru, S.A.C. (rest of the country).

Each of the concessions was awarded by the MTC and covers a 20-year period. The concessions contain coverage, reporting, service requirement and spectral efficiency goals. The MTC is authorized to cancel any of the concessions in the case of specified breaches of its terms.

82

EUROPE AND OTHER JURISDICTIONS

European Legal Framework and Principal Regulatory Authorities

The telecommunications regulatory framework in the EU    is based on the European Electronic Communications Code (EECC) that is currently in the process of being transposed into national laws for all EU member states. Austria, Bulgaria, Croatia and Slovenia are EU member states. Macedonia and Serbia, candidates for accession to the EU, are expected to gradually harmonize their regulatory frameworks with the EU’s framework.

In each European country in which we operate, we are also subject to a domestic telecommunications regulatory framework and to oversight by one or more local regulators.

Licenses

COUNTRY	FREQUENCY	TERMINATION DATE
AUSTRIA	800 MHz	Dec. 2029
	900 MHz	Dec. 2034
	1500 Mhz	Dec. 2044
	1800 MHz	Dec. 2034
	2100 MHz	Dec. 2044
	2600 MHz	Dec. 2026
	3500 MHz	Dec 2039
BELARUS	900 MHz	Not applicable
	1800 MHz	Not applicable
	2100 MHz	Not applicable
BULGARIA	900 MHz	June 2024
	1800 MHz	June 2024
	2100 MHz	Apr. 2025
CROATIA	800 MHz	Oct. 2024
	900 MHz	Oct. 2024
	1800 MHz	Oct. 2024
	2100 MHz	Oct. 2024
MACEDONIA	800 MHz	Dec. 2033
	900 MHz	Sept. 2023
	1800 MHz	Dec. 2033
	2100 MHz	Feb. 2028
SERBIA	800 MHz	Jan. 2026
	900 MHz	Nov. 2026
	1800 MHz	Nov. 2026
	2100 MHz	Nov. 2026
SLOVENIA	800 MHz	May 2029
	900 MHz	Jan. 2031
	1800 MHz	Jan. 2031
	2100 MHz	Sept. 2021
	2600 MHz	May 2029

83

OTHER JURISDICTIONS

COUNTRY	PRINCIPAL REGULATORY AUTHORITIES	CONCESSION AND LICENSES
COSTA RICA	Superintendency of Telecommunications (Superintendencia de Telecomunicaciones) Ministry of Science, Technology and Tele-communications (Ministerio de Ciencia, Tecnología y Telecomunicaciones)	•  Concessions in the AWS and 1800 MHz bands that expire in 2032 •  Concessions in the 2100 MHz band that expire in 2026 •  License to operate Pay TV services using DTH technology that will expire in 2026
EL SALVADOR	Electricity and Telecommunications Super- intendency (Superintendencia General de Electricidad y Telecomunicaciones)	•  Concession of 50 MHz in the 1900 MHz band of which 30 MHz that expire in 2038, 10 MHz that expire in 2041 and 10 MHz that expire in 2028 •  Concession to provide public telephone service that expires in 2027 •  Licenses to provide Pay TV Services through HFC and DTH technologies have an indefinite term •  Concession of 40 MHz in 1700/2100 MHz bands (AWS) that will expire in 2040
GUATEMALA	Guatemalan Telecommunications Agency (Superintendencia de Telecomunicaciones)	•  Licenses to use 12 MHz in the 900 MHz band and 120 MHz in the 1900 MHz band that all expire in 2033 •  Concession of 175 MHz in the 3.5 GHz band that will expire in 2033
NICARAGUA	Nicaraguan Telecommunications and Mailing Institute (Instituto Nicaragüense de Teleco- municaciones y Correos)	•  Concessions in the 700 MHz, 850 MHz, 1900 MHz and 1700/2100 MHz bands that all expire in 2042 •  Concession of 50 MHz in the 3.5 GHz band that will expire in 2042 •  Licenses to provide DTH technology that will expire in January 2028 and Pay TV services that has an indefinite term
HONDURAS	Honduran National Telecommunications Commission (Comisión Nacional de Teleco-municaciones)	•  Concessions to use 80 MHz in the 1900 MHz PCS band and 40 MHz in the LTE-4G 1700/2100 MHz band that all expire in 2033 •  Licenses to operate Pay TV services through (i) HFC technology that will expire in 2027 and (ii) DTH technology that will expire in 2030
PANAMA	National Authority of Public Services (Auto-ridad Nacional de los Servicios Públicos)	•  License to use 40 MHz in the 1900 MHz and 20 MHz in the 700 MHz bands that all expire in 2028 •  Licenses to provide fixed local and long-distance services that expire in 2030 •  License to provide internet service that expires in 2033 •  Licenses to provide international long-distance, value-added services, interactive television, and Pay TV service through DTH and IPTV technologies, which expire in 2028, 2030, 2037 and 2034, respectively •  License to provide Pay TV service through optical fiber that expires in 2037 •  License for data transportation, Service No. 200, which expires in 2023
UNITED STATES	The FCC	•  International Section 214 Authorization (Claro Enterprise Solutions)
DOMINICAN REPUBLIC	Dominican Institute of Telecommunications (Instituto Dominicano de las Telecomunica-ciones)	•  Concession to provide fixed and wireless services, internet and pay TV services through DTH and IPTV technologies that expire in 2030 •  Licenses to use 25 MHz in the 800 MHz band, 30 MHz in the 1900 MHz band, 80 MHz in the 2.5/2.7 GHz band, 30 MHz in the 3.5 GHz band and 40 MHz in the 1.7/2.1 GHz (AWS) band that expire in 2030
PUERTO RICO	Federal Communications Commission (FCC) and the Telecommunications Bureau of Puerto Rico	•  Concessions to use the 700 MHz, 1900 MHz and the 28 GHz bands that expire in 2021, 2027 and 2029, respectively •  Concessions to use the 800 MHz bands that expire in 2021, 2026, 2028 and 2030 •  Concessions to use the AWS-1 and AWS-3 bands (1.7/2.1 GHz) that expire in 2026 and 2028, respectivel. •  Concessions to use the 3.5 GHz band that expires in 2030 •  Long-term transfer lease concessions to use 35.6 MHz of the 2.5 GHz band that expire in 2022, 2023, 2025, 2026 and 2030 •  Franchise to operate Pay TV services using IPTV technology that expires in 2030

84

[THIS PAGE INTENTIONALLY LEFT BLANK]

Many of our employees are members of labor unions with which we conduct collective negotiations on wages, benefits and working conditions. We believe that we have good current relations with our workforce.

The following table sets forth the total number of employees and a breakdown of employees by main category of activity and geographic location, as of the end of each year in the three-year period ended December 31, 2020.

			DECEMBER 31,
	2018		2019		2020
NUMBER OF EMPLOYEES		189,448		191,523		186,851
CATEGORY OF ACTIVITY:
Wireless		77,845		83,091		73,404
Fixed		92,429		87,034		91,460
Other businesses		19,174		21,398		21,987
GEOGRAPHIC LOCATION:
Mexico		88,613		89,539		88,172
South America		62,500		61,058		59,304
Central America		9,586		10,372		9,936
United States		848		859		843
Caribbean		9,195		11,351		10,647
Europe		18,706		18,344		17,949

In each of the countries in which we operate, we are party to various legal proceedings in the ordinary course of business.

These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters such as interconnection and tariffs. We are party to a number of proceedings regarding our compliance with administrative rules and regulations and concession standards.

Our material legal proceedings are described in Note 17 to our audited consolidated financial statements included in this annual report and in “Regulation” under Part VI of this annual report.

88

AUDIT AND NON-AUDIT FEES

The following table sets forth the fees billed to us and our subsidiaries by our independent registered public accounting firm, Mancera, during the fiscal years ended December 31, 2019 and 2020:

	YEAR ENDED DECEMBER 31,
	2019		2020
	(in millions of Mexican pesos)
Audit fees(1)	Ps.	250	Ps.	250
Audit-related fees(2)		17		10
Tax fees(3)		34		19
Total fees	Ps.	301	Ps.	279

(1) Audit fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms in connection with the audit of our annual financial statements and statutory and regulatory audits.

(2) Audit-related fees represent the aggregate fees billed by Mancera and its Ernst & Young Global affiliated firms for the review of reports on our operations submitted to IFT and attestation services that are not required by statute or regulation.

(3) Tax fees represent fees billed by Mancera and its Ernst & Young Global affiliated firms for tax compliance services, tax planning services and tax advice services.

AUDIT AND CORPORATE PRACTICES COMMITTEE APPROVAL POLICIES AND PROCEDURES

Our audit and corporate practices committee has established policies and procedures for the engagement of our independent auditors for services.

Our audit and corporate practices committee expressly approves any engagement of our independent auditors for audit or non-audit services provided to us or our subsidiaries. Prior to providing any service that requires specific pre-approval, our independent auditor and our Chief Financial Officer present to the audit committee a request for approval of services in which they confirm that the request complies with the applicable rules.

We file reports, including annual reports on Form 20-F, and other information with the SEC pursuant to the rules and regulations of the SEC that apply to foreign private issuers.

Any fillings we make electronically will be available to the public over the internet at the SEC’s web site at www.sec.gov and at our website at www.americamovil.com. This URL is intended to be an inactive textual reference only. It is not intended to be an active hyperlink to our website. The information on our website, which might be accessible through a hyperlink resulting from this URL, is not incorporated into this annual report.

The following documents have been filed with the SEC as exhibits to this annual report:

1.1	Amended and Restated Bylaws (estatutos sociales) of América Móvil, S.A.B. de C.V., dated as of April  16, 2018 (together with an English translation) (incorporated by reference to Exhibit 1.1 of our annual report on Form 20-F File No. 001-16269, filed on April  26, 2018).
2.1	Description of Rights of Each Class of Securities
4.1	Stock Purchase Agreement by and among Verizon Communications Inc., América Móvil, S.A.B. de C.V., AMX USA Holding, S.A. de C.V. and Tracfone Wireless, Inc. dated as of September 13, 2020.

8.1	List of certain subsidiaries of América Móvil, S.A.B. de C.V.
12.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
12.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
13.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
15.1	Code of Ethics (incorporated by reference to Exhibit 14.1 of our annual report on Form 20-F, File No. 001-16269, filed on April 26, 2018).
15.2	Consent of independent registered public accounting firm.
17.1	Subsidiary Guarantors
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Document.

Omitted from the exhibits filed with this annual report are certain instruments and agreements with respect to long-term debt of América Móvil, none of which authorizes securities in a total amount that exceeds 10% of the total assets of América Móvil. We hereby agree to furnish to the SEC copies of any such omitted instruments or agreements as the Comission requests.

89

Some of the information contained or incorporated by reference in this annual report constitutes “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Although we have based these forward-looking statements on our expectations and projections about future events, it is possible that actual events may differ materially from our expectations. In many cases, we include, together with the forward-looking statements themselves, a discussion of factors that may cause actual events to differ from our forward-looking statements.

Examples of forward-looking statements include the following:

• projections of our commercial, operating or financial performance, our financing, our capital structure or our other financial items or ratios;

• statements of our plans, objectives or goals, including those relating to acquisitions, competition and rates;

• statements concerning regulation or regulatory developments;

• the impact of COVID-19;

• statements about our future economic performance or that of Mexico or other countries in which we operate;

• competitive developments in the telecommunications sector;

• other factors and trends affecting the telecommunications industry generally and our financial condition in particular; and

• statements of assumptions underlying the foregoing statements.

We use words such as “believe,” “anticipate,” “plan,” “expect,” “intend,” “target,” “estimate,” “project,” “predict,” “forecast,” “guideline,” “should” and other similar expressions to identify forward-looking statements, but they are not the only way we identify such statements.

Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors, some of which are discussed under “Risk Factors,” include the impact of the COVID-19 pandemic, economic and political conditions and government policies in Mexico, Brazil, Colombia, Europe and elsewhere, inflation rates, exchange rates, regulatory developments, technological improvements, customer demand and competition. We caution you that the foregoing list of factors is not exclusive and that other risks and uncertainties may cause actual results to differ materially from those in forward-looking statements. You should evaluate any statements made by us in light of these important factors.

Forward-looking statements speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

90

ITEM	FORM 20-F CAPTION	LOCATION IN THIS REPORT	PAGE
1	IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS	Not applicable	-
2	OFFER STATISTICS AND EXPECTED TIMETABLE	Not applicable	-
3	KEY INFORMATION
	3A Selected financial data	Selected financial data	6
	3B Capitalization and indebtedness	Not applicable	-
	3C Reasons for the offer and use of proceeds	Not applicable	-
	3D Risk factors	Risk factors	37
4	INFORMATION ON THE COMPANY
	4A History and development of the Company	Information on the Company	9
		Note 10—Property, Plant and Equipment, Net	F-38
		Liquidity and capital resources	32
		Additional Information	87
	4B Business overview	Information on the Company	9
		Regulation	71
	4C Organizational structure	Exhibit 8.1	-
	4D Property, plant and equipment	Information on the Company	9
		Note 10—Property Plant and Equipment, Net	F-38
		Liquidity and capital resources	32
		Regulation	71
4A	Unresolved staff comments	None	-
5*	OPERATING AND FINANCIAL REVIEW AND PROSPECTS
	5A Operating results	Overview	24
		Results of operations	26
		Regulation	71
	5B Liquidity and capital resources	Liquidity and capital resources	32
		Note 14—Debt	F-51
	5C Research and development, patents and licenses, etc.	Not applicable	-
	5D Trend information	Overview	24
		Results of operations	26
	5E Critical Accounting Estimates	Not applicable	-
6	DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES
	6A Directors and senior management	Management	60
	6B Compensation	Management	60
	6C Board practices	Management	60
		Management	60
	6D Employees	Employees	88
	6E Share ownership	Major shareholders	50
		Management	60
7	MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS
	7A Major shareholders	Major shareholders	50
	7B Related party transactions	Related party transactions	51
	7C Interests of experts and counsel	Not applicable	-
8	FINANCIAL INFORMATION
	8A Consolidated statements and other financial information	Consolidated Financial Statements	F-1
		Dividends	51
		Note 17—Commitments and Contingencies	F-59
	8B Significant changes	Not applicable	-

*América Móvil has elected to apply the SEC rules issued on November 19, 2020 which became effective on February 10, 2021, with respect to Item 5 of this Form 20-F. Registrants, including América Móvil, are required to comply with the amended rules for their first fiscal year ending on or after April 9, 2021.

91

ITEM	FORM 20-F CAPTION	LOCATION IN THIS REPORT	PAGE
9	THE OFFER AND LISTING
	9A Offer and listing details	Trading markets	52
	9B Plan of distribution	Not applicable	-
	9C Markets	Trading markets	52
	9D Selling shareholders	Not applicable	-
	9E Dilution	Not applicable	-
	9F Expenses of the issue	Not applicable	-
10	ADDITIONAL INFORMATION
	10A Shareholders’ equity	Bylaws	52
	10B Memorandum and articles of association	Bylaws	52
	10C Material contracts	Information on the Company	9
		Results of operations	26
		Related party transactions	51
		Regulation	71
	10D Exchange controls	Additional information	87
	10E Taxation	Taxation of shares and ADSs	54
	10F Dividends and paying agents	Not applicable	-
	10G Statement by experts	Not applicable	-
	10H Documents on display	Additional information	87
	10I Subsidiary information	Not applicable	-
11	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	Risk management	35
		Note 2 a)—Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices	F-8
12	DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES
	12A Debt securities	Not applicable	-
	12B Warrants and rights	Not applicable	-
	12C Other securities	Not applicable	-
	12D American Depositary Shares	Bylaws	52
13	DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES	Not applicable	-
14	MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS	Not applicable	-
15	CONTROLS AND PROCEDURES	Controls and procedures	66
16A	AUDIT COMMITTEE FINANCIAL EXPERT	Management	60
16B	CODE OF ETHICS	Code of ethics	69
16C	PRINCIPAL ACCOUNTANT FEES AND SERVICES	Principal accountant fees and services	87
16D	EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES	Not applicable	-
16E	PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS	Purchases of equity securities by the issuer and affiliated purchasers	53
16F	CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT	Not applicable	-
16G	CORPORATE GOVERNANCE	Corporate governance	64
16H	MINE SAFETY DISCLOSURE	Not applicable	-
17	FINANCIAL STATEMENTS	Not applicable	-
18	FINANCIAL STATEMENTS	Consolidated Financial statements	F-1
19	EXHIBITS	Additional Information	87

92

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

Dated: April 28, 2021

AMÉRICA MÓVIL, S.A.B. DE C.V.

By:	/s/ Carlos José García Moreno Elizondo
Name:	Carlos José García Moreno Elizondo
Title:	Chief Financial Officer
By:	/s/ Alejandro Cantú Jiménez
Name:	Alejandro Cantú Jiménez
Title:	General Counsel

93

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Financial Statements

Years Ended December 31, 2018, 2019 and 2020

with Report of Independent Registered Public Accounting Firm

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Financial Statements

Years Ended December 31, 2018, 2019 and 2020

Contents:

Report of Independent Registered Public Accounting Firm	F-2
Audited Consolidated Financial Statements:
Consolidated Statements of Financial Position	F-7
Consolidated Statements of Comprehensive Income	F-8
Consolidated Statements of Changes in Shareholders’ Equity	F-9
Consolidated Statements of Cash Flows	F-11
Notes to Consolidated Financial Statements	F-12

F-1

AMX Audit Opinion 2020

To the Board of Directors and Shareholders of

América Móvil, S.A.B. de C.V.

Opinion on the Financial Statements

We have audited the accompanying consolidated statements of financial position of América Móvil, S.A.B. de C.V. and its subsidiaries (the Company) as of December 31, 2020 and 2019, the related consolidated statements of comprehensive income, changes in shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2020, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2020 and 2019, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2020, in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated April 28, 2021 expressed an unqualified opinion thereon.

Change in accounting policy for certain class of assets (Towers)

As discussed in Note 2, item a), i) to the consolidated financial statements, effective December 31, 2020, the Company changed prospectively its method of accounting for its towers using the revaluation model permitted by IAS 16 “Property, Plant and Equipment”. As explained below, auditing this change in accounting policy was a Critical Audit Matter.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

F-2

	Deferred tax assets, realizability of Net Operating Loss Carryforwards
Description of the Matter	As discussed in Note 13 to the consolidated financial statements, as of December 31, 2020, the net balance of deferred tax assets was Ps.66,303,077 thousand. The Company has recognized deferred tax assets arising from net operating loss carryforwards (NOLs) of approximately Ps.25,121,933 thousand. The NOLs were generated primarily by its subsidiary in Brazil. Auditing management’s assessment of the realizability of the deferred tax assets arising from NOLs involved complex auditor judgement because management´s estimate of realizability was based on assessing the probability, timing and sufficiency of expected reversals of taxable temporary differences, future taxable profits and available tax planning opportunities. These projections are sensitive because they can be affected by future operating results and future market and economic conditions.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the realizability of the deferred tax assets. We tested controls over management’s analyses of future reversal of existing taxable temporary differences, their projections of future taxable income and related assumptions used in developing the projected financial information and their identification of available tax planning opportunities. Our audit also included the evaluation of controls that address the completeness and accuracy of the data utilized in the valuation models. To test the realizability of the deferred tax assets arising from NOLs our audit procedures included, among other things, the review of management´s estimates of future taxable income in Brazil, the methodology used, the significant assumptions and the underlying data used by the Company in developing the projected financial information, such as the weighted average cost of capital, customer attrition rates, growth rates, and other key assumptions by comparing them with historical, economic and industry trends and evaluating whether changes to the Company´s business model and other factors would significantly affect the projected financial information. We also involved our internal specialists to evaluate the methodologies and assumptions used, and to test the calculations used by the Company. In addition, with the assistance of our tax professionals, we assessed the application of relevant tax laws, including assessing the Company’s future tax planning opportunities and tested the Company´s scheduling of the timing and amounts of expected reversals of taxable temporary differences. We also assessed the adequacy of the related financial statement disclosures.
	Impairment of goodwill
Description of the Matter	As discussed in Note 2 item iii) i) and in Note 11 to the consolidated financial statements, as of December 31, 2020, the Company’s goodwill balance was Ps.143,052,859 thousand. The Company tests goodwill at least annually at the Cash Generating Unit (CGU) level. Impairment exists when the carrying value of a CGU exceeds its recoverable amount, which is the higher of its fair value less cost to sell and its value-in-use. Auditing management´s annual assessment of impairment of goodwill involved complex auditor judgement because the estimations required to determine the fair value and value-in-use of the CGUs, including revenue growth rates, operating margins and weighted average cost of capital, are sensitive to, and affected by, expected economic factors, technological changes and market conditions, among other factors.

F-3

How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the determination of the impairment of goodwill, including controls over management’s review of the significant assumptions described above, projected financial information and the valuation model used to develop such estimates. To test the impairment of goodwill our audit procedures included, among others, evaluating the methodology used, testing the significant assumptions mentioned above and the underlying data used by the Company. We assessed the historical accuracy of management’s estimates and projections by comparing them to actual results and obtaining appropriate explanations for the variances; examined management’s support for the current estimates and projections by comparing them to industry and economic trends, including market participant data; evaluated management’s methodology on the estimation of the weighted average cost of capital reflecting the economic conditions for each CGU; tested the completeness and accuracy of the underlying data, and evaluated other factors that would significantly affect the projected financial information and thus the fair value and value-in-use of the CGUs. In addition, we involved our valuation specialist to evaluate the methodologies and assumptions used and to test the calculations made by the Company. We also assessed the adequacy of the related financial statement disclosures.
	Discount rates used in determining pension and postretirement benefit obligations in Mexico
Description of the Matter	As discussed in Note 2, item iii), q) and in Note 18 to the consolidated financial statements, as of December 31, 2020, the defined benefit pension obligation balance was Ps.168,230,202 thousand. The Company assessed and updated its estimates and assumptions used to actuarially measure and value the defined benefit pension obligation as of December 31, 2020, using the assistance of independent actuarial specialists. Auditing the defined benefit pension obligation which the majority of it arises from one of its subsidiaries in Mexico and for which this matter is related, involved complex auditor judgement and required the involvement of actuarial specialists because of the highly judgmental nature of the actuarial assumptions, primarily the discount rate used in the Company’s measurement process. This assumption was complex because it required a valuation of the credit quality of the corporate bonds used to develop the discount rate and the correlation of those bonds’ cash inflows to the timing and amount of future expected benefit payments.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement relating to the determination of the discount rate used in the defined benefit pension and postretirement benefit obligations calculations. We tested controls over management’s determination and review of the discount rate provided to the independent actuaries. To test the determination of the discount rate of the defined benefit pension obligation we involved our valuation and actuarial specialists to assist us in evaluating the methodology used to select the yield curve applied on the calculation, assessing the credit quality of the corporate bonds that comprise the yield curve, the timing and amount of cash flows at maturity with the expected amounts and duration of the related benefit payments. In addition, we compared the Company’s current projections to historical projected defined benefit pension and postretirement benefit obligations cash flows and compared the current-year benefits paid to the prior-year projected cash flows.

F-4

	We also evaluated the objectivity and competence of the independent actuaries used by management and management´s qualified persons responsible for overseeing the preparation of the discount rate by the independent actuaries specialists through the consideration of their professional qualifications, experience and their use of accepted methodology. We also assessed the adequacy of the related financial statement disclosures.
	Revaluation of towers due to a change in accounting policy
Description of the Matter	As discussed in Note 2, item a), i) and in Note 10 to the consolidated financial statements, as of December 31, 2020, the balance of the network in operation and equipment was Ps.1,057,592,243 thousand. This includes a revaluation adjustment of Ps.107,152,628 due to a change in the accounting policy adopted by the Company on December 31, 2020 for certain class of assets (towers) from the cost model to the revaluation model. Auditing management´s revaluation model of towers involved complex auditor judgement because the estimation of the fair value of the towers required the assessment of the valuation technique and the assumptions used, as the future lease income, tenancy ratios, earnings before interest, taxes, depreciation and amortization (EBITDA) and weighted average cost of capital (WACC) that are sensitive to, and affected by, expected economic factors, technological changes and market conditions, among others.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls that address the risks of material misstatement related to the determination of tower’s fair value, including controls over management’s review of the significant assumptions described above, the valuation model used to develop such values and the completeness and accuracy of the data utilized in the valuation model. Our audit procedures included, among others, the evaluation of the tower´s measurement change from cost to the revaluation model, considering the nature of the asset and industry. To test the revaluation model of the towers, we evaluated the methodology used and tested the significant assumptions included in the model and the underlying data used by management. In particular, we assessed the historical accuracy of significant assumptions such as, EBITDA and tenancy ratios by comparing them to actual and expected results, the industry and economic trends, including market participant data, and obtained appropriate explanations for the variances; we evaluated the future lease income by comparing it with actual lease agreements’ terms and conditions with external third party companies by geography and assessed management’s methodology for determining the WACC used in the model for each country. We involved our valuation specialists to evaluate the methodology and some assumptions, including EBITDA and WACC used in the fair value estimation and tested the calculations. In addition, we evaluated the objectivity and competence of the external valuation specialists used by management and management´s qualified persons responsible for overseeing the preparation of the determination of the fair value of the towers by the external valuation specialists through the consideration of their professional qualifications, experience and their use of accepted methodology. Furthermore, we assessed the adequacy of the related financial statement disclosures.

/s/ Mancera, S.C.

We have served as the Company’s auditor since 1993.

Mexico City, Mexico

April 28, 2021

F-5

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Financial Position

(In thousands of Mexican pesos)

			At December 31,
	Note		2019			2020			2020 Millions of U.S. dollars
Assets
Current assets:
Cash and cash equivalents		3	Ps.	19,745,656		Ps.	35,917,907		US$	1,801
Equity investments at fair value through other comprehensive income (OCI) and other short-term investments		4		47,718,025			54,636,395			2,739
Accounts receivable:
Subscribers, distributors, recoverable taxes, contract assets and other, net		5		204,706,296			207,977,954			10,426
Related parties		6		1,273,140			1,391,300			70
Derivative financial instruments		7		6,825,760			20,928,335			1,049
Inventories, net		8		41,102,012			30,377,439			1,523
Other current assets, net		9		9,473,434			8,993,907			451
Total current assets			Ps.	330,844,323		Ps.	360,223,237		US$	18,059
Non-current assets:
Property, plant and equipment, net		10	Ps.	639,343,370		Ps.	722,929,631		US$	36,239
Intangibles, net		11		125,169,389			133,456,967			6,690
Goodwill		11		152,899,801			143,052,859			7,171
Investments in associated companies				2,474,193			1,829,760			92
Deferred income taxes		13		106,167,897			115,370,240			5,783
Accounts receivable, subscriber, distributors and contract assets, net		5		15,139,442			7,792,863			391
Other assets, net		9		41,892,019			38,415,826			1,926
Right-of-use assets		15		118,003,223			101,976,844			5,112
Total assets			Ps.	1,531,933,657		Ps.	1,625,048,227		US$	81,463
Liabilities and equity
Current liabilities:
Short-term debt and current portion of long-term debt		14	Ps.	129,172,033		Ps.	148,083,184		US$	7,423
Short-term liability related to right-of-use of assets		15		25,894,711			25,067,905			1,257
Accounts payable		16a		216,112,824			186,995,472			9,374
Accrued liabilities		16b		52,371,252			50,291,851			2,521
Income tax		13		33,026,606			14,644,979			734
Other taxes payable				24,373,400			27,969,739			1,402
Derivative financial instruments		7		9,596,751			14,230,249			713
Related parties		6		3,460,419			3,999,916			201
Deferred revenues				31,391,749			36,027,383			1,806
Total current liabilities			Ps.	525,399,745		Ps.	507,310,678		US$	25,431
Non-current liabilities:
Long-term debt		14	Ps.	495,082,444		Ps.	480,299,772		US$	24,077
Long-term liability related to right-of-use of assets		15		94,702,022			84,259,336			4,224
Deferred income taxes		13		18,093,041			49,067,163			2,460
Deferred revenues				3,425,738			2,875,467			144
Asset retirement obligations		16c		15,816,744			17,887,991			897
Employee benefits		18		152,507,058			168,230,202			8,433
Total non-current liabilities			Ps.	779,627,047		Ps.	802,619,931		US$	40,235
Total liabilities			Ps.	1,305,026,792		Ps.	1,309,930,609		US$	65,666
Equity:
Capital stock		20	Ps.	96,338,262		Ps.	96,341,695		US$	4,829
Retained earnings:
Prior years				213,719,236			267,865,420			13,428
Profit for the year				67,730,891			46,852,605			2,349
Total retained earnings				281,450,127			314,718,025			15,777
Other comprehensive loss items				(199,878,430	)		(160,580,917	)		(8,049	)
Equity attributable to equity holders of the parent				177,909,959			250,478,803			12,557
Non-controlling interests				48,996,906			64,638,815			3,240
Total equity				226,906,865			315,117,618			15,797
Total liabilities and equity			Ps.	1,531,933,657		Ps.	1,625,048,227		US$	81,463

The accompanying notes are an integral part of these consolidated financial statements.

F-6

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

(In thousands of Mexican pesos, except for earnings per share)

			For the years ended December 31
	Note		2018			2019			2020			2020 Millions of U.S. dollars, except for earnings per share
Operating revenues:
Service revenues			Ps.	863,647,642		Ps.	834,365,232		Ps.	857,860,234		US$	43,003
Sales of equipment				174,560,039			172,982,637			159,026,296			7,972
			Ps.	1,038,207,681		Ps.	1,007,347,869		Ps.	1,016,886,530		US$	50,975
Operating costs and expenses:
Cost of sales and services				508,822,430			471,736,157			470,427,476			23,582
Commercial, administrative and general expenses				227,192,478			215,993,865			212,135,830			10,634
Other expenses				6,923,022			5,862,102			4,724,630			237
Depreciation and amortization		9,10,11 and 15		155,712,580			158,915,210			164,243,683			8,233
			Ps.	898,650,510		Ps.	852,507,334		Ps.	851,531,619		US$	42,686
Operating income			Ps.	139,557,171		Ps.	154,840,535		Ps.	165,354,911		US$	8,289
Interest income				10,646,169			6,284,672			5,062,036			254
Interest expense				(31,771,433	)		(37,911,339	)		(38,661,740	)		(1,938	)
Foreign currency exchange (loss) gain, net				(7,261,956	)		5,226,071			(65,366,200	)		(3,277	)
Valuation of derivatives, interest cost from labor obligations and other financial items, net		22		(10,176,316	)		(7,075,342	)		1,291,108			65
Equity interest in net result of associated companies				267			(17,609	)		(287,006	)		(14	)
Profit before income tax				100,993,902			121,346,988			67,393,109			3,379
Income tax		13		46,477,079			51,033,533			16,366,152			820
Net profit for the year			Ps.	54,516,823		Ps.	70,313,455		Ps.	51,026,957		US$	2,559
Net profit for the year attributable to:
Equity holders of the parent			Ps.	52,566,197		Ps.	67,730,891		Ps.	46,852,605		US$	2,349
Non-controlling interests				1,950,626			2,582,564			4,174,352			210
			Ps.	54,516,823		Ps.	70,313,455		Ps.	51,026,957		US$	2,559
Basic and diluted earnings per share attributable to equity holders of the parent			Ps.	0.79		Ps.	1.03		Ps.	0.71		US$	0.04
Other comprehensive income (loss) items:
Net other comprehensive loss that may be reclassified to profit or loss in subsequent years:
Effect of translation of foreign entities			Ps.	(64,314,032	)	Ps.	(35,536,252	)	Ps.	(11,515,297	)	US$	(579	)
Items that will not be reclassified to (loss) or profit in subsequent years:
Re-measurement of defined benefit plan, net of deferred taxes				757,278			(29,535,672	)		(10,299,558	)		(516	)
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes				(3,765,688	)		883,408			(1,952,414	)		(98	)
Revaluation surplus, net of deferred taxes				—			—			77,230,031			3,871
Total other comprehensive (loss) income items for the year, net of deferred taxes		21		(67,322,442	)		(64,188,516	)		53,462,762			2,678
Total comprehensive (loss) income for the year			Ps.	(12,805,619	)	Ps.	6,124,939		Ps.	104,489,719		US$	5,237
Comprehensive (loss) income for the year attributable to:
Equity holders of the parent			Ps.	(11,770,227	)	Ps.	5,450,679		Ps.	86,150,118		US$	4,319
Non-controlling interests				(1,035,392	)		674,260			18,339,601			918
			Ps.	(12,805,619	)	Ps.	6,124,939		Ps.	104,489,719		US$	5,237

The accompanying notes are an integral part of these consolidated financial statements.

F-7

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2018, 2019 and 2020

(In thousands of Mexican pesos)

	Capital stock			Legal reserve		Retained earnings			Unrealized (loss) gain on equity investment at fair value			Re-measurement of defined benefit plans			Cumulative translation adjustment			Revaluation surplus		Total equity attributable to equity holders of the parent			Non- controlling interests			Total equity
As of January 1, 2018	Ps.	96,338,508		Ps.	358,440	Ps.	170,729,158		Ps.	(6,047,296	)	Ps.	(75,080,656	)	Ps.	7,866,158		Ps.	—	Ps.	194,164,312		Ps.	66,469,205		Ps.	260,633,517
Effect of adoption of new accounting standards		—			—		19,598,349			—			—			—			—		19,598,349			518,440			20,116,789
As of January 1, 2018 (restated)	Ps.	96,338,508		Ps.	358,440	Ps.	190,327,507		Ps.	(6,047,296	)	Ps.	(75,080,656	)	Ps.	7,866,158		Ps.	—	Ps.	213,762,661		Ps.	66,987,645		Ps.	280,750,306
Net profit for the year		—			—		52,566,197			—			—			—			—		52,566,197			1,950,626			54,516,823
Unrealized loss on equity investments at fair value, net of deferred taxes		—			—		—			(3,765,688	)		—			—			—		(3,765,688	)		—			(3,765,688	)
Remeasurement of defined benefit plan, net of deferred taxes		—			—		—			—			652,722			—			—		652,722			104,556			757,278
Effect of translation of foreign entities		—			—		—			—			—			(61,223,458	)		—		(61,223,458	)		(3,090,574	)		(64,314,032	)
Comprehensive income (loss) for the year		—			—		52,566,197			(3,765,688	)		652,722			(61,223,458	)		—		(11,770,227	)		(1,035,392	)		(12,805,619	)
Dividends declared		—			—		(21,134,520	)		—			—			—			—		(21,134,520	)		(1,850,462	)		(22,984,982	)
Hyperinflation adjustment		—			—		15,826,934			—			—			—			—		15,826,934			—			15,826,934
Repurchase of shares		(130	)		—		(518,633	)		—			—			—			—		(518,763	)		—			(518,763	)
Redemption of hybrid bond		—			—		—			—			—			—			—		—			(13,440,120	)		(13,440,120	)
Other acquisitions of non-controlling interests		—			—		(170,440	)		—			—			—			—		(170,440	)		(784,894	)		(955,334	)
Balance at December 31, 2018	Ps.	96,338,378		Ps.	358,440	Ps.	236,897,045		Ps.	(9,812,984	)	Ps.	(74,427,934	)	Ps.	(53,357,300	)	Ps.	—	Ps.	195,995,645		Ps.	49,876,777		Ps.	245,872,422

F-8

	Capital stock			Legal reserve		Retained earnings			Unrealized (loss) gain on equity investment at fair value			Re-measurement of defined benefit plans			Cumulative translation adjustment			Revaluation surplus		Total equity attributable to equity holders of the parent			Non- controlling interests			Total equity
Net profit for the year		—			—		67,730,891			—			—			—			—		67,730,891			2,582,564			70,313,455
Unrealized gain on equity investments at fair value, net of deferred taxes		—			—		—			883,408			—			—			—		883,408			—			883,408
Remeasurement of defined benefit plan, net of deferred taxes		—			—		—			—			(29,153,554	)		—			—		(29,153,554	)		(382,118	)		(29,535,672	)
Effect of translation of foreign entities		—			—		—			—			—			(34,010,066	)		—		(34,010,066	)		(1,526,186	)		(35,536,252	)
Comprehensive income (loss) for the year		—			—		67,730,891			883,408			(29,153,554	)		(34,010,066	)		—		5,450,679			674,260			6,124,939
Dividends declared		—			—		(23,106,823	)		—			—			—			—		(23,106,823	)		(1,473,290	)		(24,580,113	)
Repurchase of shares		(116	)		—		(427,212	)		—			—			—			—		(427,328	)		—			(427,328	)
Other acquisitions of non-controlling interests		—			—		(2,214	)		—			—			—			—		(2,214	)		(80,841	)		(83,055	)
Balance at December 31, 2019	Ps.	96,338,262		Ps.	358,440	Ps.	281,091,687		Ps.	(8,929,576	)	Ps.	(103,581,488	)	Ps.	(87,367,366	)	Ps.	—	Ps.	177,909,959		Ps.	48,996,906		Ps.	226,906,865
Net profit for the year		—			—		46,852,605			—			—			—			—		46,852,605			4,174,352			51,026,957
Unrealized loss on equity investments at fair value, net of deferred taxes		—			—		—			(1,952,414	)		—			—			—		(1,952,414	)		—			(1,952,414	)
Remeasurement of defined benefit plan, net of deferred taxes		—			—		—			—			(10,026,454	)		—			—		(10,026,454	)		(273,104	)		(10,299,558	)
Effect of translation of foreign entities		—			—		—			—			—			(13,558,774	)		—		(13,558,774	)		2,043,477			(11,515,297	)
Revaluation surplus, net of deferred taxes		—			—		—			—			—			—			64,835,155		64,835,155			12,394,876			77,230,031
Comprehensive income (loss) for the year		—			—		46,852,605			(1,952,414	)		(10,026,454	)		(13,558,774	)		64,835,155		86,150,118			18,339,601			104,489,719
Dividends declared		—			—		(25,161,564	)		—			—			—			—		(25,161,564	)		(1,860,300	)		(27,021,864	)
Stock dividend		4,650			—		17,054,007			—			—			—			—		17,058,657			—			17,058,657
Repurchase of shares		(1,217	)		—		(5,209,880	)		—			—			—			—		(5,211,097	)		—			(5,211,097	)
Other acquisitions of non-controlling interests		—			—		(267,270	)		—			—			—			—		(267,270	)		(837,392	)		(1,104,662	)
Balance at December 31, 2020	Ps.	96,341,695		Ps.	358,440	Ps.	314,359,585		Ps.	(10,881,990	)	Ps.	(113,607,942	)	Ps.	(100,926,140	)	Ps.	64,835,155	Ps.	250,478,803		Ps.	64,638,815		Ps.	315,117,618

The accompanying notes are an integral part of these consolidated financial statements.

F-9

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(In thousands of Mexican pesos)

			For the years ended December 31
	Note		2018			2019			2020			2020 Millions of U.S. dollars
Operating activities
Profit before income tax			Ps.	100,993,902		Ps.	121,346,988		Ps.	67,393,109		US$	3,379
Items not requiring the use of cash:
Depreciation property, plant and equipment and right-of-use assets		10 and 15		129,115,727			138,386,952			143,691,770			7,203
Amortization of intangible and other assets		9 and 11		26,596,853			20,528,258			20,551,913			1,030
Equity interest in net (loss) income of associated companies				(267	)		17,609			287,006			14
Loss on sale of property, plant and equipment				664,777			119,272			257,330			13
Net period cost of labor obligations		18		13,989,100			16,609,565			18,085,954			907
Foreign currency exchange loss (income), net				6,148,612			(7,250,635	)		59,923,928			3,005
Interest income				(10,646,169	)		(6,284,672	)		(5,062,036	)		(254	)
Interest expense				31,771,433			37,911,339			38,661,740			1,938
Employee profit sharing				1,500,342			1,618,695			2,066,066			105
Loss in valuation of derivative financial instruments, capitalized interest expense and other, net				(7,518,445	)		(9,202,167	)		(13,678,083	)		(686	)
Gain on net monetary positions		22		(4,429,145	)		(4,267,194	)		(3,262,512	)		(164	)
Working capital changes:
Subscribers, distributors, recoverable taxes, contract assets and other, net				(15,420,291	)		6,800,942			3,129,237			157
Prepaid expenses				3,264,685			9,079,931			20,925			1
Related parties				38,426			476,671			421,337			21
Inventories				(3,232,136	)		(2,095,622	)		11,618,280			582
Other assets				(6,081,740	)		(6,597,262	)		(2,613,460	)		(131	)
Employee benefits				(14,235,549	)		(20,224,276	)		(18,795,532	)		(942	)
Accounts payable and accrued liabilities				23,997,632			(16,811,135	)		11,531,391			578
Employee profit sharing paid				(1,013,799	)		(2,187,316	)		(2,436,223	)		(122	)
Financial instruments and other				5,286,290			(1,774,932	)		2,606,938			131
Deferred revenues				38,243			(636,221	)		3,198,018			160
Interest received				1,215,800			1,008,076			3,946,110			198
Income taxes paid				(33,713,753	)		(42,294,398	)		(60,715,663	)		(3,044	)
Net cash flows provided by operating activities			Ps.	248,330,528		Ps.	234,278,468		Ps.	280,827,543		US$	14,079
Investing activities
Purchase of property, plant and equipment				(143,888,033	)		(132,884,335	)		(108,907,418	)		(5,459	)
Acquisition of intangibles				(7,933,647	)		(18,962,856	)		(20,647,571	)		(1,035	)
Dividends received		22		2,622,237			1,773,336			2,122,826			106
Proceeds from sale of plant, property and equipment				178,532			344,924			162,060			8
Acquisition of businesses, net of cash acquired		12		(310,604	)		(13,330,651	)		(152,896	)		(8	)
Partial sale of shares of associated company				548,484			36,478			601,509			30
Investments in associate companies				—			(56,985	)		(64,341	)		(3	)
Short-term disinvestments				—			—			(8,671,662	)		(435	)
Net cash flows used in investing activities			Ps.	(148,783,031	)	Ps.	(163,080,089	)	Ps.	(135,557,493	)	US$	(6,796	)
Financing activities
Loans obtained				155,263,221			118,082,256			277,515,598			13,911
Repayment of loans				(189,314,144	)		(109,808,816	)		(330,607,399	)		(16,573	)
Payment of liability related to right-of-use of assets		15		—			(26,765,075	)		(29,623,565	)		(1,485	)
Interest paid				(30,869,017	)		(28,046,695	)		(28,421,734	)		(1,425	)
Repurchase of shares				(511,421	)		(435,713	)		(5,076,119	)		(254	)
Dividends paid				(22,369,793	)		(24,248,145	)		(9,592,253	)		(481	)
Redemption of hybrid bond				(13,440,120	)		—			—			—
Acquisition of non-controlling interests				(115,821	)		(83,055	)		(1,104,662	)		(55	)
Net cash flows used in financing activities			Ps.	(101,357,095	)	Ps.	(71,305,243	)	Ps.	(126,910,134	)	US$	(6,362	)
Net increase (decrease) in cash and cash equivalents			Ps.	(1,809,598	)	Ps.	(106,864	)	Ps.	18,359,916		US$	921
Adjustment to cash flows due to exchange rate fluctuations, net				(800,913	)		(1,807,442	)		(2,187,665	)		(110	)
Cash and cash equivalents at beginning of the year				24,270,473			21,659,962			19,745,656			990
Cash and cash equivalents at end of the year			Ps.	21,659,962		Ps.	19,745,656		Ps.	35,917,907		US$	1,801
Non-cash transactions related to:
Acquisitions of property, plant and equipment in accounts payable at end year			Ps.	19,099,066		Ps.	19,673,706		Ps.	3,063,081		US$	154
Redemption of exchangeable bond				16,446,262			—			—			—
Revaluation surplus				—			—			107,152,628			5,371
Non-cash transactions			Ps.	35,545,328		Ps.	19,673,706		Ps.	110,215,709		US$	5,525

The accompanying notes are an integral part of these consolidated financial statements.

F-10

AMÉRICA MÓVIL, S.A.B. DE C.V. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Years ended December 31, 2018, 2019 and 2020

(In thousands of Mexican pesos [Ps.] and thousands of

U.S. dollars [US$], unless otherwise indicated)

1. Description of the Business and Relevant Events

I. Corporate Information

América Móvil, S.A.B. de C.V. and subsidiaries (hereinafter, the “Company”, “América Móvil” or “AMX”) was incorporated under laws of Mexico on September 25, 2000. The Company provides telecommunications services in 25 countries throughout Latin America, the United States, the Caribbean and Europe. These telecommunications services include mobile and fixed-line voice services, wireless and fixed data services, internet access and Pay TV, over the top and other related services. The Company also sells equipment, accessories and computers.

• Voice services provided by the Company, both wireless and fixed, mainly include the following: airtime, local, domestic and international long-distance services, and network interconnection services.

• Data services include value added, corporate networks, data and Internet services.

• Pay TV represents basic services, as well as pay per view and additional programming and advertising services.

• AMX provides other related services to advertising in telephone directories, publishing and call center services.

• The Company also provides video, audio and other media content that is delivered through the internet directly from the content provider to the end user.

In order to provide these services, América Móvil has licenses, permits and concessions (collectively referred to herein as “licenses”) to build, install, operate and exploit public and/or private telecommunications networks and provide miscellaneous telecommunications services (mostly mobile and fixed voice and data services) and to operate frequency bands in the radio-electric spectrum for point-to-point and point-to-multipoint microwave links. The Company holds licenses in the 24 countries where it has networks, and such licenses have different dates of expiration through 2056.

Certain licenses require the payment to the respective governments of a share in sales determined as a percentage of revenues from services under concession. The percentage is set as either a fixed rate or in some cases based on certain size of the infrastructure in operation.

The corporate offices of América Móvil are located in Mexico City, Mexico, at Lago Zurich 245, Colonia Ampliación Granada, Delegación Miguel Hidalgo, 11529, Mexico City, Mexico.

The accompanying consolidated financial statements were approved for their issuance by the Company’s Chief Financial Officer on April 26, 2021, and subsequent events have been considered through that date.

II. Relevant events in 2020

a) The Covid-19 is an infectious disease caused by a new virus, was declared a world-wide pandemic by the World Heald Organization (“WHO”) on March 11, 2020. The measures to slow the spread of Covid-19 have had

F-11

a significant impact on the global economy. Given the evolving nature of Covid-19 and the limited recent experience of the economic and financial impacts of such a pandemic, Companies around the world have had to assess the changes and effects in their financial information. These changes and effects have not presented significant challenges for the Company in the valuation, presentation and disclosure of its financial statement consolidated as of December 31, 2020, considering that the telecommunications industry has been one of the least affected by the pandemic. As part of the actions taken, the Company has evaluated the impact, mainly on the estimates related to the measurement assets and liabilities that may arise in the future, without identifying significant changes in the assumptions used.

b) During the COVID-19 crisis, the Mexican peso fell in value against the U.S dollar, Euro and Great Britain Pound (GBP) by 5.8%, 15.3% and 9.2%, respectively. Given that a significant portion of the Company’s debt is denominated in Dollars, Euros and in GBPs, the currency depreciation adversely affected the results of the Company as part of the foreign currency exchange loss, net recognized in the period, which amounted to Ps.65,366,200.

c) In September 2020 the Company announced an agreement with Verizon Communications Inc. to sell the 100% interest in TracFone Wireless, Inc., the largest mobile virtual prepaid service operator in the United States, serving 21 million subscribers. The agreed purchase price payment at the closing is US$6,250 million, of which one-half will be in cash and the other in Verizon stock. In addition, following the closing, Verizon shall pay to AMX: (i) up to US$500 million as an earn-out if Tracfone continues to achieve certain performance measures during the 24 months following the closing, calculated and paid in 4 consecutive 6-month periods, and (ii) US$150 million deferred commercial consideration payable within two years following the closing. AMX continued to benefit from EBITDA generated by Tracfone during fiscal year 2020 and until the closing date of the transaction. The closing of the transaction is subject to customary conditions for this type of transactions, including obtaining required governmental approvals.

2. Basis of Preparation of the Consolidated Financial Statements and Summary of Significant Accounting Policies and Practices

a) Basis of preparation

The accompanying consolidated financial statements have been prepared in conformity with International Financial Reporting Standards, as issued by the International Accounting Standards Board (“IASB”) (hereafter referred to as IFRS).

The consolidated financial statements have been prepared on the historical cost basis, except for the derivative financial instruments, the mobile telecommunications towers, the trust assets of post-employment and other employee benefit plans and the investments in equity at fair value through other comprehensive income (OCI), which are presented at their market value.

Effective July 1, 2018, the Argentinian economy has been considered to be hyperinflationary in accordance with the criteria in IAS 29 “Financial Reporting in Hyperinflationary Economies” (“IAS 29”). Accordingly, for the Argentinian subsidiaries, we have included, adjustments for hyperinflation and reclassifications as is required by the standard for purposes of presentation of IFRS in the consolidated financial statements.

The preparation of these consolidated financial statements under IFRS requires the use of critical estimates and assumptions that affect the amounts reported for certain assets, liabilities, income and expenses, including the main impact generated by the COVID-19 pandemic and the potential effect on the amounts disclosed in the consolidated financial statements. It also requires that management exercise judgment in the application of the Company’s accounting policies. Actual results could differ from these estimates and assumptions.

The Mexican peso is the functional currency of the Company’s Mexican operations and the consolidated reporting currency of the Company.

F-12

i) Changes in Accounting Policies and Disclosures

Amendments to IFRS 16 Covid-19 Related Rent Concessions

On 28 May 2020, the IASB issued Covid-19-Related Rent Concessions - amendment to IFRS 16 Leases. The amendments provide relief to lessees from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the Covid-19 pandemic. As a practical expedient, a lessee may elect not to assess whether a Covid-19 related rent concession from a lessor is a lease modification. A lessee that makes this election accounts for any change in lease payments resulting from the Covid-19 related rent concession the same way it would account for the change under IFRS 16, if the change were not a lease modification.

The amendment applies to annual reporting periods beginning on or after 1 June 2020. Earlier application is permitted. This amendment had no significant impact on the consolidated financial statements of the Company (See Note 15).

Revaluation of telecommunications towers (plant, property and equipment)

As of December 31, 2020, the company changed its accounting policy to record the value of the passive infrastructure (towers) of its subsidiaries. With the change, this passive infrastructure was no longer recognized at historical cost and it began to be recognized under the revaluation model (market value). The company considers that the revaluation model represents the actual conditions of the industry of this class of assets and improves its financial position, this allows its shareholders and stakeholders to have the necessary financial information associated with market expectations about this class of assets. The incremental effect on passive infrastructure is Ps.107,152,628.

The first time application of an asset revaluation policy is a change in accounting policy that must be treated as a revaluation in accordance with IAS 16, this implies that it is not necessary to restructure the book value of previous periods, therefore, the adoption of this method will be carried out prospectively.

ii) Basis of consolidation

The consolidated financial statements include the accounts of América Móvil, S.A.B. de C.V. and those subsidiaries over which the Company exercises control. The consolidated financial statements for the subsidiaries were prepared for the same period as the Company´s and applying consistent accounting policies. All of the subsidiary companies operate in the telecommunications sector or related.

Subsidiaries are entities over which the Company has control. Control is achieved when the Company has power over the investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated on a line by line basis from the date which control is achieved by the Company. The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the elements of control.

On March 6, 2020, in accordance with a resolution of the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones or IFT), the subsidiaries Teléfonos de México, S.A.B. de C.V. and Teléfonos del Noroeste, S.A. de C.V. created separate companies related to the wholesale services named Red Nacional Última Milla S.A.P.I. de C.V., Servicios de Telecomunicaciones Ultima Milla, S.A. de C.V. and Red Última Milla del Noroeste S.A.P.I. de C.V. The restructuring of Telmex has no impact in the consolidated financial information of the Company.

Changes in the Company’s ownership interests in a subsidiary that do not result in the Company losing control over the subsidiary are accounted for as equity transactions. The carrying amounts of the equity attributable to

F-13

owners of the parent and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the carrying amount of the non-controlling interests and the fair value of the consideration paid or received in the transaction is recognized directly in the equity attributable to the owners.

Subsidiaries are deconsolidated from the date which control ceases. When the Company ceases to have control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary at their carrying amounts, derecognizes the carrying amount of non-controlling interests in the former subsidiary and recognizes the fair value of any consideration received from the transaction. Any retained interest in the former subsidiary is then remeasured to its fair value.

All intra-Company balances and transactions, and any unrealized gains and losses arising from intra-Company transactions, are eliminated in preparing the consolidated financial statements.

Non-controlling interests represent the portion of profits or losses and net assets not held by the Company. Non-controlling interests are presented separately in the consolidated statements of comprehensive income and in equity in the consolidated statements of financial position separately from Company’s own equity.

Associates:

An associate is an entity over which the Company has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but does not have control or joint control over those decisions.

The Company’s investment in associates includes goodwill identified on acquisition, net of any accumulated impairment losses.

The investments in associated companies in which the Company exercises significant influence are accounted for using the equity method, whereby Company recognizes its share in the net profit (losses) and equity of the associate.

The results of operations of the subsidiaries and associates are included in the Company’s consolidated financial statements beginning as of the month following their acquisition and its share of other comprehensive income after acquisition is recognized directly in other comprehensive income.

The Company assesses at each reporting date whether there is objective evidence that investment in associates is impaired. If so, the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value.

F-14

The equity interest in the most significant subsidiaries at December 31, 2019 and 2020 is as follows:

Company name	Country		Equity interest at December 31
			2019			2020
Subsidiaries:
América Móvil B.V. a)		Netherlands		100.0	%		100.0	%
Compañía Dominicana de Teléfonos, S.A. (“Codetel”) b)		Dominican Republic		100.0	%		100.0	%
Sercotel, S.A. de C.V. a)		Mexico		100.0	%		100.0	%
Radiomóvil Dipsa, S.A. de C.V. and subsidiaries (“Telcel”) b)		Mexico		100.0	%		100.0	%
Puerto Rico Telephone Company, Inc. b)		Puerto Rico		100.0	%		100.0	%
Servicios de Comunicaciones de Honduras, S.A. de C.V. (“Sercom Honduras”) b)		Honduras		100.0	%		100.0	%
TracFone Wireless, Inc. (“TracFone”) b)		USA		100.0	%		100.0	%
Claro S.A. (Claro Brasil) b)		Brazil		98.2	%		98.2	%
NII Brazil Holding S.A.R.L a)		Luxembourg		100.0	%		100.0	%
Nextel Telecomunicações Ltda b)		Brazil		100.0	%		100.0	%
Telecomunicaciones de Guatemala, S.A. (“Telgua”) b)		Guatemala		99.3	%		99.3	%
Claro Guatemala, S.A. b)		Guatemala		100.0	%		100.0	%
Empresa Nicaragüense de Telecomunicaciones, S.A. (“Enitel”) b)		Nicaragua		99.6	%		99.6	%
Compañía de Telecomunicaciones de El Salvador, S.A. de C.V. (“CTE”) b)		El Salvador		95.8	%		95.8	%
Comunicación Celular, S.A. (“Comcel”) b)		Colombia		99.4	%		99.4	%
Consorcio Ecuatoriano de Telecomunicaciones, S.A. (“Conecel”) b)		Ecuador		100.0	%		100.0	%
AMX Argentina, S.A. b)		Argentina		100.0	%		100.0	%
AMX Paraguay, S.A. b)		Paraguay		100.0	%		100.0	%
AM Wireless Uruguay, S.A. b)		Uruguay		100.0	%		100.0	%
Claro Chile, S.A. b)		Chile		100.0	%		100.0	%
América Móvil Perú, S.A.C b)		Peru		100.0	%		100.0	%
Claro Panamá, S.A. b)		Panamá		100.0	%		100.0	%
Teléfonos de México, S.A.B. de C.V. b)		Mexico		98.8	%		98.8	%
Telekom Austria AG b)		Austria		51.0	%		51.0	%

a) Holding companies

b) Operating companies of mobile and fixed services

iii) Basis of translation of financial statements of foreign subsidiaries and associated companies

The operating revenues of foreign subsidiaries jointly represent approximately 73%, 71% and 72% of consolidated operating revenues for the years ended December 31, 2018, 2019 and 2020, respectively, and their total assets jointly represent approximately 73% and 75% of consolidated total assets at December 31, 2019 and 2020, respectively.

The financial statements of foreign subsidiaries have been prepared under or converted to IFRS in the respective local currency (which is their functional currency) and then translated into the Company’s reporting currency as follows:

• all monetary assets and liabilities were translated at the closing exchange rate of the period;

• all non-monetary assets and liabilities at the closing exchange rate of the period;

• equity accounts are translated at the exchange rate at the time the capital contributions were made and the profits were generated;

F-15

• revenues, costs and expenses are translated at the average exchange rate of the period, except for the operations of the subsidiaries in Argentina, whose economy is considered hyperinflationary since 2018;

• the consolidated statements of cash flows presented using the indirect method were translated using the weighted-average exchange rate for the applicable period (except for Argentina), and the resulting difference is shown in the consolidated statements of cash flows under the heading “Adjustment to cash flows due to exchange rate fluctuations, net”.

The basis of translation for the operations of the subsidiaries in Argentina are described:    

In recent years, the Argentina economy has shown high rates of inflation. Although inflation data has not been consistent in recent years and several indexes have coexisted, inflation in Argentina indicates that the three-year cumulative inflation rate exceeded 100% in 2018, which is one of the quantitative references established by IAS 29. As a result, Argentina was considered a hyperinflationary economy in 2018 and the Company applies hyperinflation accounting to its subsidiary whose functional currency is the Argentine peso for financial information for periods ending on or after July 1, 2018, however the calculation of the cumulative impact was measured as of January 1, 2018.

In order to restate for hyperinflation its financial statements, the subsidiary used the series of indices defined by resolution JG No. 539/18 issued by the “Federación Argentina de Consejos Profesionales de Ciencias Económicas” (“FACPCE”), based on the National Consumer Price Index (IPC) published by the Instituto Nacional de Estadística y Censos (INDEC) of the Argentine Republic and the Wholesale Internal Price Index (IPIM) published by FACPCE. The cumulative index at December 31, 2020 is 385.8826, while on an annual inflation for 2020 is 36.1%.

The main implications are as follows:

• Adjustment of the historical cost of non-monetary assets and liabilities and equity items from their date of acquisition, or the date of inclusion in the consolidated statements of financial position, to the end of the year, in order to reflect changes in the currency’s purchasing power caused by inflation.

• The gain on the net monetary position caused by the impact of inflation in the year is included in the consolidated statements of comprehensive income as part of the caption “Valuation of derivatives, interest cost from labor obligations and other financial items, net”. Items in the statement of comprehensive income and in the statements of cash flows are adjusted by the inflation index since their origination, with a balancing entry, and a reconciling item in the statements of cash flows, respectively.

• All items in the financial statements of the Argentine company are translated at the closing exchange rate, which at December 31, 2019 and 2020 were 0.3147 and 0.2371, respectively, per argentine peso per Mexican peso.

The difference resulting from the translation process is recognized in equity in the caption “Effect of translation of foreign entities”. At December 31, 2019 and 2020, the cumulative translation adjustment was Ps.(87,367,366) and Ps.(100,926,140), respectively.

b) Revenue recognition

The Company revenues are derived principally from providing the following telecommunications services and products: wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and IT services, Pay TV and over-the-top (“OTT”) services.

The Company provides fixed and mobile services. These services are offered independently in contracts with customers or together with the sale of handsets (mobile) under the postpaid model. In accordance with IFRS 15 “Revenues from contracts with customers”, the transaction price should be assigned to the different performance obligations based on their relative standalone selling price.

F-16

The Company with respect to the provided services, it has market observable information, to determine the standalone selling price of the services. On the other hand, in the case of the sale of bundled mobile phones sold (including service and handset) by the Company, the allocation of the sales is done based on their relative standalone selling price of each individual component related to the total bundled price. The result is that more equipment revenue is recognized at the moment of a sale and, therefore, less service revenue from the monthly fee are being recognized under IFRS 15.

The services provided by the Company are satisfied over the time of the contract period, given that the customer simultaneously receives and consumes the benefits provided by the Company.

Such service bundles, voice and data, accomplish the criteria mentioned in IFRS 15 of being substantially similar and of having the same transfer pattern which is why the Company concluded that the revenue from these different services offered to its customers are considered as a single performance obligation with revenue being recognized over time, except for sales of equipment.

Under IFRS 15, for those contracts with customers in which generally the sale of equipment and other electronic equipment is a single performance obligation, the Company recognizes the revenue at the moment when it transfers control to the customer which generally occurs when such goods are delivered.

The commissions are considered incremental contract acquisition costs that are capitalized and are amortized over the expected period of benefit, during the average duration of customer contracts.

Some subsidiaries have loyalty programs where the Company awards credits customer credit awards referred as “points”. The customer can redeem accrued “points” for awards such as devices, accessories or airtime. The Company provides all awards. The consideration allocated to the award credits is identified as a separate performance obligation; the corresponding liability of the award credits is measured at its fair value. The consideration allocated to award credits amount is recognized as a contract liability until the points are redeemed. Revenue is recognized upon redemption of products by the customer.

c) Cost of sales

The cost of mobile equipment and computers is recognized at the time the client and distributor receive the device which is when the control is are transferred to the customer.

d) Cost of services

The cost of services represents the costs incurred to properly deliver the services to the customers, it includes the network operating costs and licenses related costs and is accounted at the moment in which such services are provided.

e) Commissions to distributors

The Company pays commissions to its distributors different than those that acquire customers. Such commissions are recognized in “commercial, administrative and general expenses” in the consolidated statements of comprehensive income at the time in which the distributor either reports an activation or reaches certain number of lines activated or obtained at a certain point of time.

f) Cash and cash equivalents

Cash and cash equivalents represent bank deposits and liquid investments with maturities of less than three months. These amounts are stated at cost plus accrued interest, which is similar to their market value.

The Company also maintains restricted cash held as collateral to meet certain contractual obligations. Restricted cash is presented as part of “Other assets” within other non-current financial assets given that the restrictions are long-term in nature (See Note 9).

F-17

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

Equity investments at fair value through OCI and other short-term investments are primarily composed of equity investments and other short-term financial investments. Amounts are initially recorded at their estimated fair value. Fair value adjustments for equity investments are recorded through other comprehensive income, and other short-term investment.

h) Inventories

Inventories are initially recognized at historical cost and are valued using the average cost method without exceeding their net realizable value.

The estimate of the realizable value of inventories on-hand is based on their age and turnover.

i) Business combinations and goodwill

Business combinations are accounted for using the acquisition method, which in accordance with IFRS 3, “Business acquisitions”, consists in general terms as follows:

(i) Identify the acquirer

(ii) Determine the acquisition date

(iii) Value the acquired identifiable assets and assumed liabilities

(iv) Recognize the goodwill or a bargain purchase gain

For acquired subsidiaries, goodwill represents the difference between the purchase price and the fair value of the net assets acquired at the acquisition date. The investment in acquired associates includes goodwill identified on acquisition, net of any impairment loss.

Goodwill is reviewed annually to determine its recoverability or more often if circumstances indicate that the carrying value of the goodwill might not be fully recoverable.

The possible loss of value in goodwill is determined by analyzing the recovery value of the cash generating unit (or the group thereof) to which the goodwill is associated at the time it was originated. If this recoverable amount is lower than the carrying value, an impairment loss is charged to the results of operations. The recoverable amount is determined based on the higher of fair value less cost of disposal or value in use.

For the years ended December 31, 2018, 2019 and 2020, no impairment losses were recognized for goodwill.

j) Property, plant and equipment

i) Property, plant and equipment are recorded at acquisition cost, net of accumulated depreciation; except for the passive infrastructure of telecommunications towers, which are recognized under the revaluation model as of December 31, 2020. Depreciation is computed on the cost of assets using the straight line method, based on the estimated useful lives of the related assets, beginning the month after they become available for use.

Borrowing costs that are incurred for general financing for construction in progress for periods exceeding six months are capitalized as part of the cost of the asset. During the years ended December 31, 2018, 2019 and 2020, borrowing costs that were capitalized amounted to Ps.2,020,288, Ps.2,233,358 and Ps.1,771,613, respectively.

In addition to the purchase price and costs directly attributable to preparing an asset in terms of its physical location and condition for operating as intended by management, when required, the cost also includes the estimated costs of dismantling and removal of the asset and for restoration of the site where it is located (See Note 16c).

The passive infrastructure of telecommunications towers will be recorded at revalued value, which is its fair value at the time of revaluation less accumulated depreciation; if there is any loss or impairment, it must also be

F-18

considered within its value. The revaluations will be calculated with sufficient regularity to ensure that the book value, every time, does not differ significantly from that which could be determined using the fair value at the end of the reporting period.

The increase resulting from a revaluation is recorded in other comprehensive income (OCI) and is accumulated in equity as a revaluation surplus. To the extent that there is a decrease in revaluation, it will be recognized in profit or loss, except to the extent that it compensates for an existing surplus on the same asset.

An annual transfer of the asset revaluation surplus and accumulated earnings is made to the extent that the asset is used, therefore, the surplus is equal to the difference between the depreciation calculated on the revalued value and the one calculated according to its original cost. These transfers do not record in the results for the period. A total transfer of the surplus may be made when the entity disposes of the asset.

ii) The net book value of property, plant and equipment is removed from the consolidated statements of financial position at the time the asset is sold or when no future economic benefits are expected from its use or sale. Any gains or losses on the sale of property, plant and equipment represent the difference between net proceeds of the sale and the net book value of the item at the time of sale. These gains or losses are recognized as either other operating income or other operating expenses upon sale.

iii) The Company periodically assesses the residual values, useful lives and depreciation methods associated with its property, plant and equipment. If necessary, the effects of any changes in accounting estimates is recognized prospectively, at the closing of each period, in accordance with IAS 8, “Accounting Policies, Changes in Accounting Estimates and Errors”.

For property, plant and equipment made up of several components with different useful lives, the major individual components are depreciated over their individual useful lives. Maintenance costs and repairs are expensed as incurred.

Annual depreciation rates are as follows:

Network infrastructure	5%-33%
Buildings and leasehold improvement	2%-33%
Other assets	10%-50%

iv) The carrying value of property, plant and equipment is reviewed if there are indicators of impairment in such assets. If an asset’s recovery value is less than the asset’s net carrying value, the difference is recognized as an impairment loss.

During the years ended December 31, 2018, 2019 and 2020, no impairment losses were recognized.

v) Spare parts for network operation are recognized at cost.

The valuation of inventory for network considered obsolete, defective or slow-moving, is reduced to their estimated net realizable value. The estimate of the recovery value of inventories is based on their age and turnover.

k) Intangibles

i) Licenses

Licenses to operate wireless telecommunications networks granted by the governments of the countries in which the Company operates are recorded at acquisition cost or at fair value at their acquisition date, net of accumulated amortization. Certain licenses require payments to the governments, such payments are recognized in the cost of service and equipment.

The licenses that in accordance with government requirements are categorized as automatically renewable, for a nominal cost and with substantially consistent terms, are considered by the Company as intangible assets with an

F-19

indefinite useful life. Accordingly, they are not amortized. Licenses are amortized when the Company does not have a basis to conclude that they are indefinite lived. Licenses are amortized using the straight-line method over a period ranging from 3 to 30 years, which represents the usage period of the assets.

The Company has conducted an internal analysis on the applicability of the International Financial Reporting Interpretation Committee (“IFRIC”) No. 12 (Service Concession Agreements) and has concluded that its concessions are outside the scope of IFRIC 12. To determine the applicability of IFRIC 12, the Company analyzes each concession or group of similar concessions in a given jurisdiction. As a threshold matter, the Company identifies those government concessions that provide for the development, financing, operation or maintenance of infrastructure used to render a public service, and that set out performance standards, mechanisms for adjusting prices and arrangements for arbitrating disputes.

With respect to those services, the Company evaluates whether the grantor controls or regulates (i) what services the operator must provide, (ii) to whom it must provide them and (iii) the applicable price (the “Services Criterion”). In evaluating whether the applicable government, as grantor, controls the price at which the Company provides its services, the Company looks at the terms of the concession agreement according to all applicable regulations. If the Company determines that the concession under analysis meets the Services Criterion, then the Company evaluates whether the grantor would hold a significant residual interest in the concession’s infrastructure at the end of the term of the arrangement.

ii) Trademarks

Trademarks acquired are measured on initial recognition at cost. The cost of trademarks acquired in a business combination is their fair value at the date of acquisition. The useful lives of trademarks are assessed as either definite or indefinite. Trademarks with finite useful lives are amortized using the straight-line method over a period ranging from 1 to 10 years. Trademarks with indefinite useful lives are not amortized but are tested for impairment annually at the cash generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable, if not, the change in useful life from indefinite to definite is made on a prospective basis.

iii) Irrevocable rights of use

Irrevocable rights of use are recognized according to the amount paid for the right and are amortized over the period in which they are granted.

The carrying values of the Company’s licenses and trademarks are reviewed annually and whenever there are indicators of impairment in the value of such assets. When an asset’s recoverable amount, which is the higher of the asset’s fair value, less disposal costs and its value in use (the present value of future cash flows), is less than the asset’s carrying value, the difference is recognized as an impairment loss.

iv) Customer relationships

The value of customer relations is determined and valued at the time that a new subsidiary is acquired, as determined by the Company with the assistance of independent appraisers and is amortized over a 5-year period.

During the years ended December 31, 2018, 2019 and 2020, no significant impairment losses were recognized for licenses, trademarks, irrevocable rights of use or customer relationships.

l) Impairment in the value of long-lived assets

The Company assesses the existence of indicators of impairment in the carrying value of long-lived assets, investments in associates, goodwill and intangible assets according to IAS 36 “Impairment of assets”. When

F-20

there are such indicators, or in the case of assets whose nature requires an annual impairment analysis (goodwill and intangible assets with indefinite useful lives), the Company estimates the recoverable amount of the asset, which is the higher of its fair value, less disposal costs, and its value in use. Value in use is determined by discounting estimated future cash flows, applying a pre-tax discount rate that reflects the time value of money and taking into consideration the specific risks associated with the asset. When the recoverable amount of an asset is below its carrying value, impairment is considered to exist. In this case, the carrying value of the asset is reduced to the asset’s recoverable amount, recognizing the loss in results of operations for the respective period. Depreciation and/or amortization expense of future periods is adjusted based on the new carrying value determined for the asset over the asset’s remaining useful life. Impairment is computed individually for each asset. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or group of assets.

In the estimation of impairments, the Company uses the strategic plans established for the separate cash-generating units to which the assets are assigned. Such strategic plans generally cover a period from 3 to 5 years. For longer periods, beginning in the fifth year, projections are based on such strategic plans while applying a constant or declining expected perpetual growth rate.

Key assumptions used in value in use calculations

The forecasts are made in real terms (net of inflation) and in the functional currency of the subsidiary as of December 31, 2020. Financial forecasts, premises and assumptions are similar to what any other market participant in similar conditions would consider, including impacts from the COVID-19 pandemic.

Local synergies, that any other market participant would not have taken into consideration to prepare similar forecasted financial information, have not been included.

The assumptions used to develop the financial forecasts were validated for each of the cash generating units (“CGUs”), typically identified by country and by service (in the case of Mexico) taking into consideration the following:

• Current subscribers and expected growth.

• Type of subscribers (prepaid, postpaid, fixed line, multiple services)

• Market environment and penetration expectations

• New products and services

• Economic environment of each country

• Expenses for maintaining the current assets

• Investments in technology for expanding the current assets

• Market consolidation and synergies

The foregoing forecasts could differ from the results obtained through time; however, the Company prepares its estimates based on the current situation of each of the CGUs.

The recoverable amounts are based on value in use. The value in use is determined based on the method of discounted cash flows. The key assumptions used in projecting cash flows are:

• Margin on EBITDA is determined by dividing EBITDA (operating income plus depreciation and amortization) by total revenues.

• Margin on CAPEX is determined by dividing capital expenditures (“CAPEX”) by total revenues.

• Pre-tax weighted average cost of capital (“WACC”) is used to discount the projected cash flows.

F-21

As discount rate, the Company uses the WACC which was determined for each of the cash generating units and is described in the following paragraphs.

The estimated discount rates to perform the IAS 36 “Impairment of assets”, impairment test for each CGU consider market participants assumptions. Market participants were selected taking into consideration size, operations and characteristics of the business that were similar to those of Company. These discount rates do not include inflation.

The discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate calculation is based on the specific circumstances of the Company and its operating segments. The WACC takes into account both debt and equity costs. The cost of equity is derived from the expected return on investment for each GCU. The cost of debt is based on the interest-bearing borrowings the Company is obliged to service. Segment-specific risk is incorporated by applying individual beta factors.

The beta factors are evaluated annually based on publicly available market data.

Market participant assumptions are important because, not only do they include industry data for growth rates, but also management assesses how the CGU’s position, relative to its competitors, might change over the forecasted period.

The most significant forward-looking estimates used for the 2019 and 2020 impairment evaluations are shown below:

	Average margin on EBIDTA		Average margin on CAPEX		Average pre-tax discount rate (WACC)
2019:
Europe (7 countries)		29.40% - 44.50%		10.90% - 19.30%		5.77% - 14.96%
Brazil (fixed line, wireless and TV)		40.43%		23.50%		11.00%
Puerto Rico		21.94%		17.94%		4.39%
Dominican Republic		47.23%		16.17%		13.84%
Mexico (fixed line and wireless)		38.81%		9.84%		6.94%
Ecuador		44.98%		11.65%		19.85%
Peru		32.51%		18.51%		8.86%
El Salvador		44.04%		25.03%		16.05%
Chile		26.85%		18.00%		4.16%
Colombia		45.58%		19.25%		17.27%
Other countries		7.40% - 52.40%		0.57% - 31.0%		6.41% - 34.75%
2020:
Europe (7 countries)		32.20% - 40.76%		7.04% - 19.39%		3.88% - 12.02%
Brazil (fixed line, wireless and TV)		40.67%		25.36%		9.50%
Puerto Rico		23.06%		14.57%		3.53%
Dominican Republic		47.57%		13.71%		8.27%
Mexico (fixed line and wireless)		32.69%		11.01%		6.03%
Ecuador		49.23%		11.14%		17.50%
Peru		38.72%		15.43%		4.76%
El Salvador		45.92%		21.19%		14.63%
Chile		26.34%		13.18%		3.37%
Colombia		43.45%		18.19%		6.44%
Other countries		10.07% - 47.23%		0.48% - 31.67%		3.42% - 21.85%

F-22

Sensitivity to changes in assumptions:

The implications of the key assumptions for the recoverable amount are discussed below:

Margin on CAPEX- The Company performed a sensitivity analysis by increasing its CAPEX by 5% and maintaining all other assumptions the same. The sensitivity analysis would require the Company to adjust the amount of its long-lived assets in its CGUs with potential impairment of approximately Ps.62,548.

WACC- Additionally, should the Company increase by 50 base points in WACC per CGU and maintain all other assumptions the same, results without impairment.

m) Right-of-use assets

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Assets	Useful life
Towers and sites	5 to 12 years
Property	10 to 25 years
Other equipment	5 to 15 years

The right-of-use assets are also subject to impairment test.

ii) Lease liabilities.

At the commencement date of the lease, the Company recognizes the lease liabilities measured at the present value of the lease payments to be made over the lease term. Lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or rate, and amounts expected to be paid under residual value guarantees. The lease payments also include payments of penalties for early termination of the lease, if the term of the lease reflects that the Company exercises the option to terminate early. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period on which the event or condition that triggers the payment occurs.

In calculating the present value of the lease payments, the Company uses an incremental borrowing rate at the lease commencement date, if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of the lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed payments or change in the assessment to purchase the underlying asset.

iii) Short-term leases and leases of low value assets.

The Company applies the short-term lease recognition exemption for its leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a

F-23

purchase option). It also applies the recognition exemption lease of low-value assets (that is, below US$5,000). Short-term lease payments and leases of low-value assets are recognized as expenses on straight-line basis over the lease term.

n) Financial assets and liabilities

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them, with the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

• Financial assets at amortized cost (debt instruments)

• Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

• Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

• Financial assets at fair value through profit or loss

Financial assets at amortized cost (debt instruments)

The Company measures financial assets at amortized cost if both of the following conditions are met:

• The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows, and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.

The Company’s financial assets at amortized cost includes cash equivalents, loans and receivables.

Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments)

The Company measures debt instruments at fair value through OCI if both of the following conditions are met:

• The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling, and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

F-24

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognized in the statements of profit or loss and computed in the same manner as for financial assets measured at amortized cost. The remaining fair value changes are recognized in OCI. Upon derecognition, the cumulative fair value change recognized in OCI is recycled to profit or loss.

Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument by instrument basis.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognized as other income in the statements of profit or loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows that are not solely payments of principal and interest are classified and measured at fair value through profit or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at amortized cost or at fair value through OCI, as described above, debt instruments may be designated at fair value through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.

Financial assets at fair value through profit or loss are carried in the statements of financial position at fair value with net changes in fair value recognized in the consolidated statements of comprehensive income within “Valuation of derivatives, interest cost from labor obligations and other financial items”.

Derecognition of financial assets

A financial asset is primarily derecognized when:

• The rights to receive cash flows from the asset have expired, or

• The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

When the Company has transferred its rights to receive cash flows from an asset or has entered into a passthrough arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognize the transferred asset to the extent of its continuing involvement. In that case, the Company also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Company has retained.

F-25

Impairment of financial assets

The Company recognizes an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognized in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For some trade receivables and contract assets based on available information, the Company applies the simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Company has established a loss rate approach that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment, including the impact by the COVID-19 pandemic.

Financial liabilities

Initial recognition

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, and derivative financial instruments.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the statements of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss.

F-26

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statements of profit or loss.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statements of comprehensive income.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statements of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously.

o) Transactions in foreign currency

Transactions in foreign currency are initially recorded at the prevailing exchange rate at the time of the related transactions. Foreign currency denominated assets and liabilities are subsequently translated at the prevailing exchange rate at the financial statements reporting date. Exchange differences determined from the transaction date to the time foreign currency denominated assets and liabilities are settled or translated at the financial statements reporting date are charged or credited to the results of operations.

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Company initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Company determines the transaction date for each payment or receipt of advance consideration.

F-27

The exchange rates used for the translation of foreign currencies against the Mexican peso are as follows:

		Average exchange rate						Closing exchange rate at December 31,
Country or Zone	Currency	2018		2019		2020		2019		2020
Argentina (1)	Argentine Peso (AR$)		0.7311		0.4110		0.3070		0.3147		0.2371
Brazil	Real (R$)		5.2937		4.8907		4.1850		4.6754		3.8387
Colombia	Colombian Peso (COP$)		0.0065		0.0059		0.0058		0.0058		0.0058
Guatemala	Quetzal		2.5591		2.5023		2.7826		2.4478		2.5596
U.S.A. (2)	US Dollar		19.2397		19.2641		21.4860		18.8452		19.9487
Uruguay	Uruguay Peso		0.6274		0.5479		0.5110		0.5051		0.4712
Nicaragua	Cordoba		0.6097		0.5817		0.6257		0.5569		0.5728
Honduras	Lempira		0.7994		0.7806		0.8678		0.7597		0.8215
Chile	Chilean Peso		0.0300		0.0275		0.0271		0.0252		0.0281
Paraguay	Guaraní		0.0034		0.0031		0.0032		0.0029		0.0029
Peru	Sol (PEN$)		5.8517		5.7708		6.1483		5.6814		5.5046
Dominican Republic	Dominican Peso		0.3876		0.3737		0.3766		0.3542		0.3416
Costa Rica	Colon		0.0332		0.0326		0.0366		0.0327		0.0323
European Union	Euro		22.7101		21.5642		24.5080		21.1311		24.3693
Bulgaria	Lev		11.6110		11.0257		12.5284		10.8076		12.4594
Belarus	New Belarusian Ruble		9.4451		9.2159		8.8172		8.9420		7.5721
Croatia	Croatian Kuna		3.0613		2.9069		3.2498		2.8406		3.2279
Macedonia	Macedonian Denar		0.3688		0.3504		0.3975		0.3431		0.3950
Serbia	Serbian Denar		0.1920		0.1830		0.2083		0.1795		0.2071

(1) Year-end rates are used for the translation of revenues and expenses if IAS 29 “Financial Reporting in Hyperinflationary Economies” is applied.

Financial reporting in hyperinflationary economies

Financial statements of Argentina subsidiaries are restated before translation to the reporting currency of the Company and before consolidation in order to reflect the same value of money for all items. Items recognized in the statements of financial position which are not measured at the applicable year-end measuring unit are restated based on the general price index. All non-monetary items measured at cost or amortized cost is restated for the changes in the general price index from the date of transaction or the last hyperinflationary calculation to the reporting date. Monetary items are not restated. All items of shareholders’ equity are restated for the changes in the general price index since their addition or the last hyperinflationary calculation until the end of the reporting period. All items of comprehensive income are restated for the change in a general price index from the date of initial recognition to the reporting date. Gains and losses resulting from the net-position of monetary items are reported in the consolidated statements of operations in financial result in exchange differences. In accordance with IFRS, prior year financial statements were not restated.

(2) Includes U.S.A., Ecuador, El Salvador, Puerto Rico and Panama.

As of April 26, 2021, the exchange rate between the US dollar and the Mexican Peso was Ps.19.8695. The appreciation of the Mexican peso against the US dollar represent 0.4% with respect to the year-end value.

p) Accounts payable, accrued liabilities and provisions

Liabilities are recognized whenever (i) the Company has current obligations (legal or assumed) resulting from a past event, (ii) when it is probable the obligation will give rise to a future cash disbursement for its settlement, and (iii) the amount of the obligation can be reasonably estimated.

When the effect of the time value of money is significant, the amount of the liability is determined as the present value of the expected disbursements to settle the obligation. The discount rate is determined on a pre-tax basis

F-28

and reflects current market conditions at the financial statements reporting date and, where appropriate, the risks specific to the liability. Where discounting is used, an increase in the liability is recognized as finance expense.

Contingent liabilities are recognized only when it is probable, they will give rise to a future cash disbursement for their settlement.

q) Employee benefits

The Company has defined benefit pension plans for its subsidiaries Puerto Rico Telephone Company, Teléfonos de Mexico, Claro Brasil, and Telekom Austria. Claro Brasil also has medical plans and defined contribution plans and Telekom Austria provides retirement benefits to its employees under a defined contribution plan. The Company recognizes the costs of these plans based upon independent actuarial computations and are determined using the projected unit credit method. The latest actuarial computations were prepared as of December 31, 2020.

Mexico

Mexican subsidiaries have the obligation to pay seniority premiums to personnel based on the Mexican Federal Labor Law which also establishes the obligation to make certain payments to personnel who cease to provide services under certain circumstances. Pensions (for Telmex) and seniority premiums are determined based on the salary of employees in their final year of service, the number of years worked at and their age at the moment of retirement.

The costs of pensions, seniority premiums and severance benefits, are recognized based on calculations by independent actuaries using the projected unit credit method using financial hypotheses, net of inflation.

Telmex has established an irrevocable trust fund and makes annual contributions to that fund.

Puerto Rico

In Puerto Rico, the Company has noncontributing pension plans for full-time employees, which are tax qualified as they meet Employee Retirement Income Security Act of 1974 requirements.

The pension benefit is composed of two elements:

(i) An employee receives an annuity at retirement if they meet the rule of 85 (age at retirement plus accumulated years of service). The annuity is calculated by applying a percentage times year of services to the last three years of salary.

(ii) The second element is a lump-sum benefit based on years of service ranging from 9 to 12 months of salary. Health care and life insurance benefits are also provided to retirees under a separate plan (post-retirement benefits).

Brazil

Claro Brasil provides a defined benefit plan and post-retirement medical assistance plan, and a defined contribution plan, through a pension fund that supplements the government retirement benefit for certain employees.

Under the defined benefit plan, the Company makes monthly contributions to the pension fund equal to 17.5% of the employee’s aggregate salary. In addition, the Company contributes a percentage of the aggregate salary base for funding the post-retirement medical assistance plan for the employees who remain in the defined benefit plan. Each employee makes contributions to the pension fund based on age and salary. All newly hired employees automatically adhere to the defined contribution plan and no further admittance to the defined benefit plan is allowed. For the defined contribution plan, see Note 18.

F-29

Austria

Telekom Austria provides retirement benefits to its employees under defined contribution and defined benefit plans.

The Company pays contributions to publicly or privately administered pension or severance insurance plans on mandatory or contractual basis. Once the contributions have been paid, the Company has no further payment obligations. The regular contributions are recognized as employee expenses in the year in which they are due.

All other employee benefit obligations provided in Austria are unfunded defined benefit plans for which the Company records provisions which are calculated using the projected unit credit method. The future benefit obligations are measured using actuarial methods on the basis of an appropriate assessment of the discount rate, rate of employee turnover, rate of compensation increase and rate of increase in pensions.

For severance and pensions, the subsidiary recognizes actuarial gains and losses in other comprehensive income. The re-measurement of defined benefit plans relates to actuarial gains and losses only as Telekom Austria holds no plan assets. Interest expense related to employee benefit obligations is reported in “Valuation of derivatives, interests cost from labor obligation and other financial items, net” in the statements of comprehensive income.

Other subsidiaries

For the rest of the Company’s subsidiaries, there are no defined benefit plans or compulsory defined contribution structures. However, certain subsidiaries make contributions to national pension, social security and severance plans in accordance with the percentages and rates established by the applicable social security and labor laws of each country. Such contributions are made to the entities designated by the countries legislation and are recorded as direct labor expenses in the consolidated statements of comprehensive income as they are incurred.

Remeasurements of defined benefit plans, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net interest and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to retained earnings through OCI in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognized in profit or loss on the earlier of:

(i) The date of the plan amendment or curtailment, and

(ii) The date that the Company recognizes restructuring-related costs

Net interest on liability for defined benefits is calculated by applying the discount rate to the net defined benefit liability or asset and it is recognized in the “valuation of derivatives, interest cost from labor obligations and other financial items” in the consolidated statements of comprehensive income. The Company recognizes the changes in the net defined benefit obligation under “Cost of sales and services” and “Commercial, administrative and general expenses” in the consolidated statements of comprehensive income.

Paid absences

The Company recognizes a provision for the cost of paid absences, such as vacation time, based on the accrual method.

r) Employee profit sharing

Employee profit sharing is paid by certain subsidiaries of the Company to its eligible employees. The Company has employee profit sharing in Mexico, Ecuador and Peru. In Mexico, employee profit sharing is computed at the rate of 10% on the individual subsidiaries taxable base adjusted for employee profit sharing purposes as provided by law.

F-30

Employee profit sharing is presented as an operating expense in the consolidated statements of comprehensive income.

s) Taxes

Income taxes

Current income tax payable is presented as a short-term liability, net of prepayments made during the year.

Deferred income tax is determined using the liability method based on the temporary differences between the tax values of the assets and liabilities and their book values at the consolidated financial statements reporting date.

Deferred tax assets and liabilities are measured using the tax rates that are expected to be in effect in the period when the asset will materialize or the liability will be settled, based on the enacted tax rates (and tax legislation) that have been enacted or substantially enacted at the financial statements reporting date. The value of deferred tax assets is reviewed by the Company at each financial statements reporting date and is reduced to the extent that it is more likely that the Company will not have sufficient future tax profits to allow for the realization of all or a part of its deferred tax assets. Unrecognized deferred tax assets are revalued at each financial statement reporting date and are recognized when it is more likely that there will be sufficient future tax profits to allow for the realization of these assets.

Deferred taxes relating to items recognized in Other Comprehensive Income are recognized together with the concept that generated such deferred taxes. Deferred taxes consequence on unremitted earnings from subsidiaries and associates are considered as temporary differences, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Taxes withheld on remitted foreign earnings are creditable against Mexican taxes, thus to the extent that a remittance is to be made, the deferred tax would be limited to the incremental difference between the Mexican tax rate and the rate of the remitting country. As of December 31, 2019 and 2020, the Company has not provided for any deferred taxes related to unremitted foreign earnings.

The Company offsets tax assets and liabilities if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Sales tax

Revenues, expenses and assets are recognized net of the amount of sales tax, except:

• When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable.

• Receivables and payables that are stated with the amount of sales tax included.

The net amount of sales tax recoverable from, or payable to, the tax authorities is included as part of the current receivables or payables in the consolidated statements of financial position unless they are due in more than a year in which case they are classified as non-current.

t) Advertising

Advertising expenses are recognized as incurred. For the years ended December 31, 2018, 2019 and 2020, advertising expenses were Ps.26,255,952, Ps.22,810,211 and Ps.19,894,607 respectively, and are presented in the consolidated statements of comprehensive income in the caption “Commercial, administrative and general expenses”.

F-31

u) Earnings per share

Basic and diluted earnings per share are determined by dividing net profit of the year by the weighted-average number of shares outstanding during the year. In determining the weighted average number of outstanding shares, shares repurchased by the Company have been excluded.

v) Financial risks

The main risks associated with the Company’s financial instruments are: (i) liquidity risk, (ii) market risk (foreign currency exchange risk and interest rate risk) and (iii) credit risk and counterparty risk. The Board of Directors approves the policies submitted by management to mitigate these risks.

i) Liquidity risk

Liquidity risk is the risk that the Company may not meet its financial obligations associated with financial instruments when they are due. The Company’s financial obligations and commitments are included in Notes 14 and 17.

ii) Market risk

The Company is exposed to certain market risks derived from changes in interest rates and fluctuations in exchange rates of foreign currencies. The Company’s debt is denominated in foreign currencies, mainly in US dollars and euros, other than its functional currency. In order to reduce the risks related to fluctuations in the exchange rate of foreign currency, the Company uses derivative financial instruments such as cross-currency swaps and forwards to adjust exposures resulting from foreign exchange currency. The Company does not use derivatives to hedge the exchange risk arising from having operations in different countries.

Additionally, the Company occasionally uses interest rate swaps to adjust its exposure to the variability of the interest rates or to reduce their financing costs. The Company’s practices vary from time to time depending on judgments about the level of risk, expectations of change in the movements of interest rates and the costs of using derivatives. The Company may terminate or modify a derivative financial instrument at any time. See Note 7 for disclosure of the fair value of derivatives as of December 31, 2019 and 2020.

iii) Credit risk

Credit risk represents the loss that could be recognized in case the counterparties fail to comply with their contractual obligations.

The financial instruments that potentially represent concentrations of credit risk are cash and short-term deposits, trade accounts receivable and financial instruments related to debt and derivatives. The Company’s policy is designed in order to limit its exposure to any one financial institution; therefore, the Company’s financial instruments are contracted with several different financial institutions located in different geographic regions.

The credit risk in accounts receivable is diversified because the Company has a broad customer base that is geographically dispersed. The Company continuously evaluates the credit conditions of its customers and generally does not require collateral to guarantee collection of its accounts receivable. The Company monitors on a monthly basis its collection cycle to avoid deterioration of its results of operations.

A portion of the Company’s cash surplus is invested in short- term deposits with financial institutions with high credit ratings.

F-32

iv) Sensitivity analysis for market risks

The Company uses sensitivity analysis to measure the potential losses based on a theoretical increase of 100 basis points in interest rates and a 5% fluctuation in exchange rates:

Interest rate

In the event that the Company’s agreed-upon interest rates at December 31, 2020 increase/(decrease) by 100 basis points and a 5% fluctuation in exchange rates, the net interest expense would increase/(decrease) by Ps.1,476,660 and Ps.(13,417,231), respectively.

Exchange rate fluctuations

Should the Company’s debt at December 31, 2020 of Ps.628,382,956, suffer a 5% increase/(decrease) in exchange rates, the debt would increase/(decrease) by Ps.31,429,089 and Ps.(31,429,089), respectively.

w) Derivative financial instruments

Derivative financial instruments are recognized in the consolidated statements of financial position at fair value. Valuations obtained by the Company are compared against those of the financial institutions with which the agreements are entered into, and it is the Company’s policy to compare such fair value to a valuation provided by an independent pricing provider in case of discrepancies. Changes in the fair value of derivatives that do not qualify as hedging instruments are recognized immediately in the line “Valuation of derivatives, interest cost from labor obligations and other financial items, net”.

The Company is exposed to interest rate and foreign currency risks, which tries to mitigate through a controlled risk management program that includes the use of derivative financial instruments. The Company principally uses to offset the risk of exchange rate and interest rate fluctuations. Additionally, for the years ended December 31, 2018, 2019 and 2020 certain of the Company’s derivative financial instruments had been designated, and had qualified, as cash flow hedges. The effective portion of gains or losses on the cash flow derivatives is recognized in equity under the heading “Effect for fair value of derivatives”, and the ineffective portion is charged to results of operations of the period.

x) Current versus non-current classification

The Company presents assets and liabilities in its consolidated statements of financial position based on current/non-current classification.

An asset is current when it is either:

(i) Expected to be realized or intended to be sold or consumed in the normal operating cycle.

(ii) Held primarily for the purpose of trading.

(iii) Expected to be realized within twelve months after the reporting period.

(iv) Cash and cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liability is current when:

• It is expected to be settled in the normal operating cycle.

• It is held primarily for the purpose of trading.

• It is due to be settled within twelve months after the reporting period.

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

F-33

The Company classifies all other assets and liabilities, including deferred income tax assets and liabilities, as non-current.

y) Presentation of consolidated statements of comprehensive income

The costs and expenses shown in the consolidated statements of comprehensive income are presented in combined manner (based on both their function and nature), which allows a better understanding of the components of the Company’s operating income. This classification allows a comparison to the telecommunications industry.

The Company presents operating income in its consolidated statements of comprehensive income since it is a key indicator of the Company’s performance. Operating income represents operating revenues less operating costs and expenses.

z) Operating segments

Segment information is presented based on information used by management in its decision-making processes. Segment information is presented based on the geographic areas in which the Company operates. The management of the Company is responsible for making decisions regarding the resources to be allocated to the Company’s different segments, as well as evaluating the performance of each segment. Intersegment revenues and costs, intercompany balances as well as investments in shares in consolidated entities are eliminated upon consolidation and reflected in the “eliminations” column in Note 23.

None of the segments records revenue from transactions with a single external customer amounting to 10% or more of the revenues.

Aa) Convenience translation

The consolidated financial statements are stated in thousands of Mexican pesos (“Ps.”); however, solely for the convenience of the readers, the consolidated statement of financial position as of December 31, 2020 and the consolidated statement of comprehensive income and consolidated statement of cash flows for the year ended December 31, 2020 were converted into U.S. dollars at the exchange rate of Ps.19.9487 per U.S. dollar, which was the exchange rate at that date. This arithmetic conversion should not be construed as representations that the amounts expressed in Mexican pesos may be converted into U.S. dollars at that or any other exchange rate.

Ab) Significant accounting judgments, estimates and assumptions

In preparing its consolidated financial statements, the Company makes estimates concerning a variety of matters. Some of these matters are highly uncertain, and its estimates involve judgments it makes based on the available information. In the discussion below, the Company has identified several of these matters for which its financial statements would be materially affected if either (1) the Company uses different estimates that it could have reasonably used or (2) in the future América Móvil changes its estimates in response to changes that are reasonably likely to occur.

The following discussion addresses only those estimates that the Company considers most important based on the degree of uncertainty and the likelihood of a material impact had it used a different estimate. There are many other areas in which the Company uses estimates about uncertain matters, but the reasonably likely effect of changed or different estimates is not material to the financial presentation for those other areas.

Estimated useful lives of plant, property and equipment

The Company currently depreciates most of its network infrastructure based on an estimated useful life determined upon the expected particular conditions of operation and maintenance in each of the countries in which it operates. The estimates are based on AMX’s historical experience with similar assets, anticipated

F-34

technological changes and other factors, taking into account the practices of other telecommunications companies. The Company reviews estimated useful lives each year to determine, for each particular class of assets, whether they should be changed. The Company may shorten/extend the estimated useful life of an asset class in response to technological changes, changes in the market or other developments. This results in increased/decreased depreciation expense (See Note 10).

Revaluation of passive infrastructure of telecommunications towers

The Company recognizes the passive structure of the telecommunication towers at fair value, recognizing the changes in OCI. The discounted cash flow model was used. The Company hired a valuation specialist with industry experience to measure fair values as of December 31, 2020.

Impairment of Long-Lived Assets

The Company has large amounts of long-lived assets, including property, plant and equipment, intangible assets, investments in affiliates and goodwill on its consolidated statements of financial position. The Company is required to test long-lived assets for impairment when circumstances indicate a potential impairment or, in some cases, at least on an annual basis. The impairment analysis for long-lived assets requires the Company to estimate the recoverable amount of the asset, which is the higher of its fair value (minus any disposal costs) and its value in use. To estimate the fair value of a long-lived asset, the Company typically takes into account recent market transactions or, if no such transactions can be identified, the Company uses a valuation model that requires making certain assumptions and estimates. Similarly, to estimate the value in use of long-lived assets, the Company typically makes various assumptions about the future prospects for the business to which the asset relates, considers market factors specific to that business and estimates future cash flows to be generated by that business. Based on this impairment analysis, including all assumptions and estimates related thereto, as well as guidance provided by IFRS relating to the impairment of long-lived assets different assumptions and estimates could materially impact the Company’s reported financial results. More conservative assumptions of the anticipated future benefits from these businesses could result in impairment charges, which would decrease net income and result in lower asset values on the consolidated statements of financial position. Conversely, less conservative assumptions could result in smaller or no impairment charges, higher net income and higher asset values. The key assumptions used to determine the recoverable amount for the Company’s CGUs, are further explained in Notes 23, 10 and 11.

Deferred Income Taxes

The Company is required to estimate its income taxes in each of the jurisdictions in which it operates. This process involves the jurisdiction-by-jurisdiction estimation of actual current tax exposure and the assessment of temporary differences resulting from the differing treatment of certain items, such as accruals and amortization, for tax and financial reporting purposes, as well as net operating loss carry-forwards and other tax credits. These items result in deferred tax assets and liabilities as discussed in Note 2 s). The analysis is based on estimates of taxable income in the jurisdictions in which the Company operates and the period on which the deferred tax assets and liabilities will be recovered or settled. If actual results differ from these estimates, or the Company adjusts these estimates in future periods, its financial position and results of operations may be materially affected.

In assessing the future realization of deferred tax assets, the Company considers future taxable income, ongoing planning strategies and future results in its operations. In the event that the estimates of projected future taxable income are lowered, or changes in current tax regulations are enacted that would impose restrictions on the timing or extent of the ability to utilize the tax benefits of net operating loss carry-forwards in the future, an adjustment to the recorded amount of deferred tax assets would be made, with a related charge to income. See Note 13.

F-35

Accruals

Accruals are recorded when, at the end of the period, the Company has a present obligation as a result of past events, whose settlement requires an outflow of resources that is considered probable and can be measured reliably. This obligation may be legal or constructive, arising from, but not limited to, regulation, contracts, common practice or public commitments, which have created a valid expectation for third parties that the Company will assume certain responsibilities. The amount recorded is the best estimation performed by the Company’s management in respect of the disbursement that will be required to settle the obligations, considering all the information available at the date of the financial statements, including the opinion of external experts, such as legal advisors or consultants. Accruals are adjusted to account for changes in circumstances for ongoing matters and the establishment of additional accruals for new matters.

If the Company is unable to reliably measure the obligation, no accrual is recorded, and information is then presented in the notes to its consolidated financial statements. Because of the inherent uncertainties in these estimations, actual expenditures may be different from the originally estimated amount recognized. See Note 16.

The Company is subject to various claims and contingencies related to tax, labor and legal proceedings as described in Note 17b).

Labor Obligations

The Company recognizes liabilities on its consolidated statements of financial position and expenses in its statements of comprehensive income to reflect its obligations related to its post-retirement seniority premiums, pension and retirement plans in the countries in which it operates and offer defined contribution and benefit pension plans. The amounts the Company recognizes are determined on an actuarial basis that involves estimations and accounts for post-retirement and termination benefits.

The Company uses estimates in four specific areas that have a significant effect on these amounts: (i) the rate of return the Company assumes its pension plans will earn on its investments, (ii) the salaries increase rate that the Company assumes it will observe in future years, (iii) the discount rates that the Company uses to calculate the present value of its future obligations and (iv) the expected inflation rate. The assumptions applied are further disclosed in Note 18. These estimates are determined based on actuarial studies performed by independent experts using the projected unit-credit method.

3. Cash and Cash Equivalents

Cash and cash equivalents are comprised of short-term deposits with different financial institutions. Cash equivalents only include instruments with purchased maturity of less than three months. The amount includes the amount deposited, plus any interest earned.

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

As of December 31, 2019 and 2020, equity investments at fair value through OCI and other short-term investments includes an equity investment in KPN for Ps.37,572,410 and Ps.50,033,111, respectively, and other short-term investments for Ps.10,145,615 and Ps.4,603,284, respectively, which represents a cash deposit used to guarantee a short-term obligation for one of the Company’s foreign subsidiaries and are presented at their carrying value, which approximates fair value.

The investment in KPN is carried at fair value with changes in fair value being recognized through other comprehensive (loss) gain items (equity) in the Company’s consolidated statements of financial position. As of December 31, 2019 and 2020, the Company has recognized in equity changes in fair value of the investment of Ps.883,408 and Ps.(1,952,414), respectively, net of deferred taxes, through other comprehensive (loss) gain items in equity.

F-36

During the years ended December 31, 2018, 2019 and 2020, the Company received dividends from KPN for an amount of Ps.2,605,333, Ps.1,742,242 and Ps.2,119,668, respectively; which are included within “Valuation of derivatives, interest cost from labor obligations, and other financial items, net” in the consolidated statements of comprehensive income.

5. Accounts receivable from subscribers, distributors, recoverable taxes contractual assets and other, net

a) An analysis of accounts receivable by component at December 31, 2019 and 2020 is as follows:

	At December 31,
	2019			2020
Subscribers and distributors		Ps.184,260,099			Ps.168,758,386
Telecommunications carriers for network interconnection and other services		5,079,763			4,914,094
Recoverable taxes		23,628,728			44,557,402
Sundry debtors		12,084,050			12,504,566
Contract assets		34,274,007			29,588,104
Impairment of trade receivables		(39,480,909	)		(44,551,735	)
Total net		Ps.219,845,738			Ps.215,770,817
Non-current subscribers, distributors and contractual assets		Ps.  15,139,442			Ps.    7,792,863
Total current subscribers, distributors and contractual assets		Ps.204,706,296			Ps.207,977,954

b) Changes in the impairment of trade receivables is as follows:

	For the years ended December 31,
	2018			2019			2020
Balance at beginning of year		Ps.(39,044,925	)		Ps.(40,798,025	)		Ps.(39,480,909	)
Increases recorded in expenses		(19,535,707	)		(16,346,395	)		(19,112,635	)
Adjustment on initial application of IFRS 9		(2,400,783	)		—			—
Write-offs		15,497,254			17,839,957			11,953,227
Business combination					(3,265,490	)		(2,066	)
Translation effect		4,686,136			3,089,044			2,090,648
Balance at end of year		Ps.(40,798,025	)		Ps.(39,480,909	)		Ps.(44,551,735	)

c) The following table shows the aging of accounts receivable at December 31, 2019 and 2020, for subscribers and distributors:

Past due

Total

Unbilled services provided

a-30 days

31-60 days

61-90 days

Greater than 90 days

December 31, 2019

Ps.

184,260,099

Ps.

76,223,243

Ps.

46,083,644

Ps.

6,076,281

Ps.

4,121,929

Ps.

51,755,002

December 31, 2020

Ps.

168,758,386

Ps.

75,972,811

Ps.

37,439,995

Ps.

5,325,264

Ps.

3,313,835

Ps.

46,706,481

d) The following table shows the accounts receivable from subscribers and distributors included in the impairments of trade receivables, as of December 31, 2019 and 2020:

	Total		1-90 days		Greater than 90 days
December 31, 2019	Ps.	39,480,909	Ps.	3,948,091	Ps.	35,532,818
December 31, 2020	Ps.	44,551,735	Ps.	4,455,174	Ps.	40,096,561

F-37

e) An analysis of contract assets and liabilities at December 31, 2019 and 2020 is as follows:

	2019			2020
Contract Assets:
Balance at the beginning of the year	Ps.	34,718,749		Ps.	34,274,007
Additions		34,877,851			27,242,031
Disposals		(2,658,641	)		(1,397,714	)
Business Combination		576,463			—
Amortization		(30,501,315	)		(29,002,995	)
Translation effect		(2,739,100	)		(1,527,225	)
Balance at the end of the year	Ps.	34,274,007		Ps.	29,588,104
Non-current contract assets	Ps.	1,786,560		Ps.	817,740
Current portion contracts assets	Ps.	32,487,447		Ps.	28,770,364

6. Related Parties

a) The following is an analysis of the balances with related parties as of December 31, 2019 and 2020. All of the companies were considered affiliates of América Móvil since the Company’s principal shareholders are either direct or indirect shareholders in the related parties.

	2019		2020
Accounts receivable:
Hubard y Bourlon, S.A. de C.V.		Ps.   172,952		Ps.   437,231
Patrimonial Inbursa, S.A.		386,194		327,985
Sears Roebuck de México, S.A. de C.V. and Subsidiaries.		228,523		233,402
Sanborns Hermanos, S.A.		229,964		160,116
Claroshop.com, S.A.P.I de C.V.		91,874		100,075
Grupo Condumex, S.A. de C.V. and Subsidiaries		12,018		10,038
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries		41,204		7,679
Other		110,411		114,774
Total		Ps.1,273,140		Ps.1,391,300
	2019		2020
Accounts payable:
Carso Infraestructura y Construcción, S.A. de C.V. and Subsidiaries		Ps.1,656,123		Ps.2,192,405
Grupo Condumex, S.A. de C.V. and Subsidiaries		905,776		1,054,526
Fianzas Guardiana Inbursa, S.A. de C.V.		241,305		241,898
Grupo Financiero Inbursa, S.A.B. de C.V.		246,804		234,954
Seguros Inbursa, S.A. de C.V.		100,155		92,173
PC Industrial, S.A. de C.V. and Subsidiaries		68,189		44,198
Enesa, S.A. de C.V. and Subsidiaries		25,076		22,014
Other		216,991		117,748
Total		Ps.3,460,419		Ps.3,999,916

For the years ended December 31, 2018, 2019 and 2020, the Company has not recorded any impairment of receivables in connection with amounts owed by related parties.

F-38

b) For the years ended December 31, 2018, 2019 and 2020, the Company conducted the following transactions with related parties:

	2018		2019		2020
Investments and expenses:
Construction services, purchases of materials, inventories and property, plant and equipment (i)	Ps.	7,211,960	Ps.	8,573,894	Ps.	7,130,769
Insurance premiums, fees paid for administrative and operating services, brokerage services and others (ii)		4,134,380		4,590,620		4,375,113
Rent of towers (iii)		6,168,592		—		—
Other services		1,864,017		1,277,404		1,101,528
	Ps.	19,378,949	Ps.	14,441,918	Ps.	12,607,410
Revenues:
Service revenues	Ps.	679,220	Ps.	538,110	Ps.	608,248
Sales of equipment		1,296,204		944,697		656,801
	Ps.	1,975,424	Ps.	1,482,807	Ps.	1,265,049

i) In 2020, this amount includes Ps.5,312,845 (Ps.6,809,244 in 2019 and Ps.5,622,791 in 2018) for network construction services and construction materials purchased from subsidiaries of Grupo Carso, S.A.B. de C.V. (Grupo Carso).

ii) In 2020, this amount includes Ps.203,013 (Ps.956,132 in 2019 and Ps.778,191 in 2018) for network maintenance services performed by Grupo Carso subsidiaries; Ps.13,490 in 2020 (Ps.16,161 in 2019, and Ps.13,784 in 2018) for software services provided by an associate; Ps.2,713,370 in 2020 (Ps.2,623,795 in 2019 and Ps.2,541,703 in 2018) for insurance premiums with Seguros Inbursa S.A. and Fianzas Guardiana Inbursa, S.A., which, in turn, places most of such insurance with reinsurers.

iii) Due to the implementation of IFRS 16 amounts related to payments for tower leases are no longer considered rental expenses.

c) The aggregate compensation paid to the Company’s, directors (including compensation paid to members of the Audit and Corporate Practices Committee), and senior management in 2020 was approximately Ps.6,300 and Ps.79,600, respectively. None of the Company’s directors is a party to any contract with the Company or any of its subsidiaries that provides for benefits upon termination of employment. The Company does not provide pension, retirement or similar benefits to its directors in their capacity as directors. The Company’s executive officers are eligible for retirement and severance benefits required by Mexican law on the same terms as all other employees.

d) Österreichische Bundes- und Industriebeteiligungen GmbH (ÖBIB) is considered a related party due to it is a significant non-controlling shareholder in Telekom Austria. Through Telekom Austria, América Móvil is related to the Republic of Austria and its subsidiaries, which are mainly ÖBB Group, ASFINAG Group and Post Group as well as Rundfunk und Telekom Reguliegungs-GmbH, all of which these are related parties. In 2018, 2019 and 2020, none of the individual transactions associated with government agencies or government-owned entities of Austria were considered significant to América Móvil.

F-39

7. Derivative Financial Instruments

To mitigate the risks of future increases in interest rates and foreign exchange rates for the servicing of its debt, the Company has entered into derivative contracts in over-the-counter transactions carried out with financial institutions. In 2020 the weighted-average interest rate of the total debt including the impact of interest rate derivatives held by the Company is 3.5% (3.8% and 4.1% in 2019 and 2018, respectively). An analysis of the derivative financial instruments contracted by the Company at December 31, 2019 and 2020 is as follows:

	At December 31,
	2019					2020
Instrument	Notional amount in millions		Fair Value			Notional amount in millions		Fair Value
Assets:
Swaps US Dollar-Mexican peso	US$	3,290		Ps. 4,420,433		US$	3,490		Ps.16,806,937
Swaps US Dollar – Euro	US$	150		96,967		US$	150		117,726
Swaps Yen-US Dollar	¥	6,500		262,993		¥	9,750		269,215
Swaps Pound sterling – US Dollar	£	100		2,988		£	1,010		2,237,919
Forwards US Dollar – Mexican Peso	US$	100		18		US$	240		39,607
Forwards US Dollar-Brazilian real	US$	83		90,429			—		—
Forwards Brazilian Real-US Dollar	BRL	5,803		1,620,605		BRL$	4,193		1,190,292
Forwards Euro-Brazilian real	€	50		4,255			—		—
Forwards Euro-US Dollar	€	1,506		204,241		€	915		266,639
Forwards Argentinean Peso – US Dollar	ARS$	1,388		122,831			—		—
Total Assets				Ps.6,825,760					Ps.20,928,335
	At December 31,
	2019					2020
Instrument	Notional amount in millions		Fair Value			Notional amount in millions		Fair Value
Liabilities:
Swaps US Dollar-Mexican peso	US$	200		Ps.     (33,253	)		—		Ps.             —
Swaps US Dollar-Euro	US$	800		(2,228,287	)	US$	800		(4,811,031	)
Swaps Yen-US Dollar		—		—		¥	3,250		(14,802	)
Swaps Pound sterling-Euro	£	640		(2,201,997	)	£	640		(3,122,492	)
Swap Pound sterling-US Dollar	£	2,010		(3,019,255	)	£	550		(457,559	)
Forwards US Dollar-Mexican Peso	US$	2,343		(1,398,247	)	US$	3,494		(4,052,852	)
Forwards Brazilian Real-US Dollar		—		—		BRL$	1,762		(425,249	)
Forwards Euro – Mexican Peso		—		—		€	200		(272,274	)
Forwards Euro-US Dollar	€	1,094		(554,278	)		—		—
Forwards US Dollar – Euro	US$	20		(3,787	)		—		—
Forwards Euro – Brazilian Real	€	140		(10,196	)		—		—
Forwards Yen – US Dollar	¥	6,500		(18,769	)		—		—
Put option	€	374		(126,569	)	€	374		(1,073,990	)
Call option	€	3,000		(2,113	)		—		—
Total Liabilities				Ps.(9,596,751	)				Ps.(14,230,249	)

The changes in the fair value of these derivative financial instruments for the years ended December 31, 2018, 2019 and 2020 amounted to a (loss) gain of Ps.(4,686,407), Ps.4,432,023 and Ps.12,378,193. Such amounts are included in the consolidated statements of comprehensive income as part of the caption “Valuation of derivatives interest cost from labor obligations and other financial items, net”.

F-40

The maturities of the notional amount of the derivatives are as follows:

Instrument	Notional amount in millions	2021		2022		2023		2024	2025 Thereafter
Assets
Swaps US Dollar-Mexican peso	US$				1,600					1,890
Swaps Yen-US Dollar	¥									9,750
Swaps US Dollar – Euro	US$									150
Swaps Pound sterling – US Dollar	£									1,010
Forwards US Dollar-Mexican Peso	US$		240
Forwards Brazilian Real-US Dollar	BRL		4,193
Forwards Euro-US Dollar	€		915
Liabilities
Swaps US Dollar-Euro	US$									800
Swaps Yen-US Dollar	¥									3,250
Swaps Pound sterling-Euro	£									640
Swap Pound sterling-US Dollar	£									550
Forwards US Dollar – Mexican Peso	US$		3,494
Forwards Brazilian Real-US Dollar	BRL		1,762
Forwards Euro – Mexican Peso	€		200
Put option	€						374

8. Inventories, net

An analysis of inventories at December 31, 2019 and 2020 is as follows:

	2019			2020
Mobile phones, accessories, computers, TVs, cards and other materials		Ps.43,954,616			Ps.33,763,086
Less: Reserve for obsolete and slow-moving inventories		(2,852,604	)		(3,385,647	)
Total		Ps.41,102,012			Ps.30,377,439

For the years ended December 31, 2018, 2019 and 2020, the cost of inventories recognized in cost of sales was Ps.180,013,986, Ps.174,543,602 and Ps.167,546,288, respectively.

9. Other assets, net

An analysis of other assets at December 31, 2019 and 2020 is as follows:

	2019		2020
Current portion:
Advances to suppliers (different from PP&E and inventories)		Ps.  7,718,343		Ps.  7,600,644
Prepaid insurance		978,927		1,300,019
Other		776,164		93,244
		Ps.  9,473,434		Ps.  8,993,907
Non-current portion:
Recoverable taxes		Ps.14,647,726		Ps.11,559,961
Prepayments for the use of fiber optics		2,095,556		2,709,358
Judicial Deposits (1)		19,506,147		15,402,840
Prepaid expenses		5,642,590		8,743,667
Total		Ps.41,892,019		Ps.38,415,826

F-41

For the years ended December 31, 2018, 2019 and 2020, amortization expense for other assets was Ps.798,243, Ps.318,824 and Ps.213,833, respectively.

(1) Judicial deposits represent cash and cash equivalents pledged in order to fulfill the collateral requirements for tax contingencies mainly in Brazil. At December 31, 2019 and 2020, the amount for these deposits is Ps.19,506,147 and Ps.15,402,840, respectively for Brazil. Based on its evaluation of the underlying contingencies, the Company believes that such amounts are recoverable.

10. Property, Plant and Equipment, net

a) An analysis of activity in property, plant and equipment, net for the years ended December 31, 2018, 2019 and 2020 is as follows:

	At December 31, 2017		Additions		Retirements			Business combinations		Effect of translation of foreign subsidiaries and hyperinflation adjustment			Depreciation for the year			At December 31, 2018
Cost
Network in operation and equipment	Ps.	989,665,946	Ps.	68,900,443	Ps.	(1,610,246	)		Ps.128,246	Ps.	(87,888,453	)	Ps.	—		Ps.	969,195,936
Land and buildings		62,584,189		4,429,433		(3,987,671	)		8,874		(5,904,499	)		—			57,130,326
Other assets		150,315,807		25,268,252		(13,377,798	)		2,578		(12,399,702	)		—			149,809,137
Construction in process and advances plant suppliers (1)		74,121,374		92,285,397		(76,978,798	)		1,379		(8,336,823	)		—			81,092,529
Spare parts for operation of the network		26,591,598		49,380,349		(44,626,488	)		1,939		(2,902,869	)		—			28,444,529
Total		1,303,278,914		240,263,874		(140,581,001	)		143,016		(117,432,346	)		—			1,285,672,457
Accumulated depreciation
Network in operation and equipment		552,345,509		—		(28,712,096	)		—		(67,907,227	)		104,279,361			560,005,547
Buildings		10,655,285		—		(2,311,442	)		—		(2,157,996	)		2,625,102			8,810,949
Other assets		63,359,529		—		(2,418,837	)		—		(6,579,983	)		22,172,785			76,533,494
Spare parts for operation of the network		575,393		—		(160,696	)		—		(131,429	)		38,479			321,747
Total	Ps.	626,935,716	Ps.	—	Ps.	(33,603,071	)		Ps.       —	Ps.	(76,776,635	)	Ps.	129,115,727		Ps.	645,671,737
Net Cost	Ps.	676,343,198	Ps.	240,263,874	Ps.	(106,977,930	)		Ps.143,016	Ps.	(40,655,711	)	Ps.	(129,115,727	)	Ps.	640,000,720

F-42

	At December 31, 2018		Additions		Retirements			Business combinations		Effect of translation of foreign subsidiaries and hyperinflation adjustment			Depreciation for the year			At December 31, 2019
Cost
Network in operation and equipment	Ps.	969,195,936	Ps.	82,992,062	Ps.	(13,417,360	)	Ps.	9,572,805		Ps.(57,669,840	)	Ps.	—		Ps.	990,673,603
Land and buildings		57,130,326		1,530,677		(4,025,222	)		115,935		(3,950,463	)		—			50,801,253
Other assets		149,809,137		26,881,611		(7,594,735	)		1,021,051		(7,776,500	)		—			162,340,564
Construction in process and advances plant suppliers (1)		81,092,529		82,640,305		(76,892,011	)		209,790		(5,511,439	)		—			81,539,174
Spare parts for operation of the network		28,444,529		44,776,904		(36,525,735	)		—		(2,462,605	)		—			34,233,093
Total		1,285,672,457		238,821,559		(138,455,063	)		10,919,581		(77,370,847	)		—			1,319,587,687
Accumulated depreciation
Network in operation and equipment		560,005,547		—		(24,954,514	)		—		(47,778,627	)		93,097,695			580,370,101
Buildings		8,810,949		—		(287,072	)		—		(1,386,974	)		2,330,405			9,467,308
Other assets		76,533,494		—		(695,425	)		—		(4,754,982	)		19,249,104			90,332,191
Spare parts for operation of the network		321,747		—		(283,986	)		—		(79,226	)		116,182			74,717
Total	Ps.	645,671,737	Ps.	—	Ps.	(26,220,997	)	Ps.	—		Ps.(53,999,809	)	Ps.	114,793,386		Ps.	680,244,317
Net Cost	Ps.	640,000,720	Ps.	238,821,559	Ps.	(112,234,066	)	Ps.	10,919,581		Ps.(23,371,038	)	Ps.	(114,793,386	)	Ps.	639,343,370

	At December 31, 2019		Additions		Retirements			Business combinations		Revaluation adjustments		Transfers			Effect of translation of foreign subsidiaries and hyperinflation adjustment			Depreciation for the year			At December 31, 2020
Cost
Network in operation and equipment	Ps.	990,673,603	Ps.	90,387,449	Ps.	(19,574,391	)	Ps.	996,974	Ps.	107,152,628	Ps.	(62,050,212	)	Ps.	(49,993,808	)	Ps.	—		Ps.	1,057,592,243
Land and buildings		50,801,253		570,062		(2,853,037	)		—		—		—			369,300			—			48,887,578
Other assets		162,340,564		17,474,218		(14,454,598	)		55,848		—		—			(8,393,187	)		—			157,022,845
Construction in process and advances plant suppliers (1)		81,539,174		59,635,316		(68,661,847	)		1,099		—		—			(5,011,829	)		—			67,501,913
Spare parts for operation of the network		34,233,093		30,721,413		(37,829,818	)		—		—		—			(2,328,430	)		—			24,796,258
Total		1,319,587,687		198,788,458		(143,373,691	)		1,053,921		107,152,628		(62,050,212	)		(65,357,954	)		—			1,355,800,837
Accumulated depreciation
Network in operation and equipment		580,370,101		—		(25,726,856	)		—		—		(62,050,212	)(2)		(58,055,450	)		96,729,723			531,267,306
Buildings		9,467,308		—		(1,663,796	)		—		—		—			(622,253	)		1,906,140			9,087,399
Other assets		90,332,191		—		(9,317,821	)		—		—		—			(5,120,175	)		16,549,822			92,444,017
Spare parts for operation of the network		74,717		—		(176,131	)		—		—		—			38,898			135,000			72,484
Total	Ps.	680,244,317	Ps.	—	Ps.	(36,884,604	)	Ps.	—	Ps.	—	Ps.	(62,050,212	)	Ps.	(63,758,980	)	Ps.	115,320,685		Ps.	632,871,206
Net Cost	Ps.	639,343,370	Ps.	198,788,458	Ps.	(106,489,087	)	Ps.	1,053,921	Ps.	107,152,628	Ps.	—		Ps.	(1,598,974	)	Ps.	(115,320,685	)	Ps.	722,929,631

⁽¹⁾ Construction in progress includes fixed and mobile network facilities as well as satellite developments and fiber optic which is in the process of being installed.

⁽²⁾ This transfer relates to the accumulated depreciation as at the revaluation date that was eliminated against the gross carrying amount of the revalued asset.

The completion period of construction in progress is variable and depends upon the type of plant and equipment under construction.

b) Revaluation of telecommunications towers

F-43

The Fair value of the passive infrastructure of telecommunications towers was determined using the ”income approach” method through a discounted flow model (DFC) where, among others, inputs such as average rents per tower were used, contract term and discount rates considering market information.

As of December 31, 2020, date of the revaluation, the fair values of the passive infrastructure of the telecommunications towers were determinated by a valuation specialist with experience in the industry. The complement for the revaluation of the passive infrastructure of the telecommunications towers amounted to Ps.107,152,628 and was recognized in OCI, the change in revaluation did not have an impact on the results of the year due to depreciation effects since the change occurred on effective date 31 December 2020.

The information to be disclosed on the fair value measurement for the revalued telecommunications towers is provided in Note 19.

	2020
Book value as of December 31, 2020 (cost model)		Ps.615,777,003
Supplement for change in accounting policy		107,152,628
Book value and fair value as of December 31, 2020 (revaluation model)		722,929,631

c) Relevant information related to the computation of the capitalized borrowing costs is as follows:

	Year ended December 31,
	2018		2019		2020
Amount invested in the acquisition of qualifying assets	Ps.	45,456,630	Ps.	50,783,957	Ps.	46,528,232
Capitalized interest		2,020,288		2,233,358		1,771,613
Capitalization rate		4.4%		4.4%		3.8%

Capitalized interest is being amortized over a period of estimated useful life of the related assets.

F-44

11. Intangible assets, net and goodwill

a) An analysis of intangible assets at December 31, 2018, 2019 and 2020 is as follows:

	For the year ended December 31, 2018
	Balance at beginning of year			Acquisitions		Acquisitions in business combinations		Disposals and other			Amortization of the year			Effect of translation of foreign subsidiaries and Hyperinflation adjustment			Balance at end of year
Licenses and rights of use	Ps.	247,413,824		Ps.	4,227,244	Ps.	—	Ps.	1,508,274		Ps.	—		Ps.	(19,670,368	)	Ps.	233,478,974
Accumulated amortization		(134,109,438	)		—		—		(1,005,877	)		(11,347,089	)		16,281,825			(130,180,579	)
Net		113,304,386			4,227,244		—		502,397			(11,347,089	)		(3,388,543	)		103,298,395
Trademarks		28,779,212			159,958		6,631		—			—			(738,635	)		28,207,166
Accumulated amortization		(18,841,405	)		—		—		—			(4,973,602	)		275,046			(23,539,961	)
Net		9,937,807			159,958		6,631		—			(4,973,602	)		(463,589	)		4,667,205
Customer relationships		26,985,714			74,637		15,556		—			—			(1,532,839	)		25,543,068
Accumulated amortization		(16,129,495	)		—		—		—			(3,754,312	)		1,122,270			(18,761,537	)
Net		10,856,219			74,637		15,556		—			(3,754,312	)		(410,569	)		6,781,531
Software licenses		15,055,598			2,004,550		3,006		(905,610	)		—			(1,848,286	)		14,309,258
Accumulated amortization		(7,815,161	)		—		—		2,677,848			(3,491,629	)		924,139			(7,704,803	)
Net		7,240,437			2,004,550		3,006		1,772,238			(3,491,629	)		(924,147	)		6,604,455
Content rights		6,717,442			850,779		—		—			—			(18,512	)		7,549,709
Accumulated amortization		(4,516,665	)		—		—		—			(2,231,978	)		(14,949	)		(6,763,592	)
Net		2,200,777			850,779		—		—			(2,231,978	)		(33,461	)		786,117
Total of intangibles, net	Ps.	143,539,626		Ps.	7,317,168	Ps.	25,193	Ps.	2,274,635		Ps.	(25,798,610	)	Ps.	(5,220,309	)	Ps.	122,137,703
Goodwill	Ps.	151,463,232		Ps.	—	Ps.	334,739	Ps.	(1,094,861	)		—		Ps.	(5,136,613	)	Ps.	145,566,497

	For the year ended December 31, 2019
	Balance at beginning of year			Acquisitions		Acquisitions in business combinations		Disposals and other			Amortization of the year			Effect of translation of foreign subsidiaries and Hyperinflation adjustment			Balance at end of year
Licenses and rights of use	Ps.	233,478,974		Ps.	13,206,877	Ps.	7,844,339	Ps.	7,286,114		Ps.	—		Ps.	(15,715,442	)	Ps.	246,100,862
Accumulated amortization		(130,180,579	)		—		—		(2,391,624	)		(11,577,160	)		9,481,480			(134,667,883	)
Net		103,298,395			13,206,877		7,844,339		4,894,490			(11,577,160	)		(6,233,962	)		111,432,979
Trademarks		28,207,166			53,467		—		(6,012	)		—			(835,613	)		27,419,008
Accumulated amortization		(23,539,961	)		—		—		—			(1,008,483	)		618,145			(23,930,299	)
Net		4,667,205			53,467		—		(6,012	)		(1,008,483	)		(217,468	)		3,488,709
Customer relationships		25,543,068			20,248		—		5,507			—			(2,693,812	)		22,875,011
Accumulated amortization		(18,761,537	)		—		—		—			(3,371,924	)		2,357,831			(19,775,630	)
Net		6,781,531			20,248		—		5,507			(3,371,924	)		(335,981	)		3,099,381
Software licenses		14,309,258			2,729,480		—		(949,858	)		—			(2,984,770	)		13,104,110
Accumulated amortization		(7,704,803	)		—		—		(1	)		(2,479,088	)		2,183,149			(8,000,743	)
Net		6,604,455			2,729,480		—		(949,859	)		(2,479,088	)		(801,621	)		5,103,367
Content rights		7,549,709			1,427,694		—		1,638,007			—			(455,228	)		10,160,182
Accumulated amortization		(6,763,592	)		—		—		(8,720	)		(1,772,779	)		429,862			(8,115,229	)
Net		786,117			1,427,694		—		1,629,287			(1,772,779	)		(25,366	)		2,044,953
Total of intangibles, net	Ps.	122,137,703		Ps.	17,437,766	Ps.	7,844,339	Ps.	5,573,413		Ps.	(20,209,434	)	Ps.	(7,614,398	)	Ps.	125,169,389
Goodwill	Ps.	145,566,497		Ps.	—	Ps.	10,869,571	Ps.	(843,005	)		—		Ps.	(2,693,262	)	Ps.	152,899,801

F-45

	For the year ended December 31, 2020
	Balance at beginning of year			Acquisitions		Acquisitions in business combinations			Disposals and other			Amortization of the year			Effect of translation of foreign subsidiaries and Hyperinflation adjustment			Balance at end of year
Licenses and rights of use	Ps.	246,100,862		Ps.	15,079,714	Ps.	4,436,313		Ps.	1,502,981		Ps.	—		Ps.	(14,029,709	)	Ps.	253,090,161
Accumulated amortization		(134,667,883	)		—		—			105,892			(14,274,497	)		14,227,424			(134,609,064	)
Net		111,432,979			15,079,714		4,436,313			1,608,873			(14,274,497	)		197,715			118,481,097
Trademarks		27,419,008			162,309		12,110			4,000			—			1,534,938			29,132,365
Accumulated amortization		(23,930,299	)		—		—			(4,276	)		(300,727	)		(1,119,645	)		(25,354,947	)
Net		3,488,709			162,309		12,110			(276	)		(300,727	)		415,293			3,777,418
Customer relationships		22,875,011			1,935		2,689,718			(5,763	)		—			4,018,365			29,579,266
Accumulated amortization		(19,775,630	)		—		—			855			(1,654,237	)		(3,996,593	)		(25,425,605	)
Net		3,099,381			1,935		2,689,718			(4,908	)		(1,654,237	)		21,772			4,153,661
Software licenses		13,104,110			2,445,784		36			(2,485,429	)		—			4,236,645			17,301,146
Accumulated amortization		(8,000,743	)		—		—			2,013,617			(2,667,870	)		(3,578,452	)		(12,233,448	)
Net		5,103,367			2,445,784		36			(471,812	)		(2,667,870	)		658,193			5,067,698
Content rights		10,160,182			1,570,415		—			(313,942	)		—			619,657			12,036,312
Accumulated amortization		(8,115,229	)		—		—			—			(1,440,749	)		(503,241	)		(10,059,219	)
Net		2,044,953			1,570,415		—			(313,942	)		(1,440,749	)		116,416			1,977,093
												��
Total of intangibles, net	Ps.	125,169,389		Ps.	19,260,157	Ps.	7,138,177		Ps.	817,935		Ps.	(20,338,080	)	Ps.	1,409,389		Ps.	133,456,967
Goodwill	Ps.	152,899,801		Ps.	—	Ps.	(7,014,120	)	Ps.	(537,343	)	Ps.	—		Ps.	(2,295,479	)	Ps.	143,052,859

b) The aggregate carrying amount of goodwill is allocated as follows:

	2019		2020
Europe	Ps.	52,950,325	Ps.	53,388,139
Brazil		28,062,398		18,730,686
Puerto Rico		17,463,394		17,463,394
Dominican Republic		14,186,723		14,186,723
Colombia		12,124,685		12,253,743
México		10,148,380		10,148,380
Peru		2,739,947		2,710,979
Chile		2,364,816		2,558,098
El Salvador		2,499,552		2,499,544
United States (Tracfone)		3,220,105		3,362,900
Ecuador		2,155,384		2,155,384
Guatemala		3,245,613		2,301,533
Other countries		1,738,479		1,293,356
	Ps.	152,899,801	Ps.	143,052,859

c) The following is a description of the major changes in the “Licenses and rights of use” caption during the years ended December 31, 2018, 2019 and 2020:

2018 Acquisitions

i) In December, Dominican Republic acquired radio spectrum totaling Ps.709,829 (RD$ 1,831,427) with a useful life of 11 years.

F-46

ii) Additionally, in 2018, the Company acquired other licenses in Paraguay, Puerto Rico, Europe, Argentina, Chile and others countries in the amount of Ps.3,517,415.

2019 Acquisitions

i) In 2019, Claro Brasil increased its licenses value by Ps.3,457,251 by renewal licenses Anatel and reversion of IRU of Telxus referring to ICMS.

ii) In 2019, Austria acquired licenses to operate certain frequencies for Ps.3,023,732, (3.5 GHz; EUR 64.3 mn), Belarus (2.1 GHz; EUR 9.5 mn) and Croatia (2.1 GHz; EUR 7.2 mn).

iii) In 2019, Telmex increased its licenses value by Ps.459,668 for rights to use IFETEL with a validity of 20 years, and a right to use submarine cable with a validity of 10 years.

iv) In January 2019, Telcel acquired licenses for an amount of Ps.1,649,525 for PC´s 98 concessions titles and September 30, 2019 for 400 MHZ concessions titles.

v) In December 2019, Comcel increased its licenses value by Ps.2,753,768 or (468,511,573,375 Colombian pesos) in accordance with Res.3386 of December 23, granted Claro (Comcel) the 20 years renewal of 10 MHz of spectrum in the 1900 MHz band.

vi) Additionally, in 2019, the Company acquired other licenses in Puerto Rico, Argentina, Guatemala, Panamá and other countries in the amount of Ps.1,862,934.

2020 Acquisitions

i) In February 2020, Comcel increased its licenses value by Ps.9,246,825 for an auction of the 30 Mhz spectrum in the 2,500 band for a period of 20 years in accordance with resolution. 325,326 and 327 of February 20, 2020 issued by the Ministry of Information and Communication (MINTIC)

ii) In 2020, Telcel acquired licenses for an amount Ps.1,806,875 for Axtel and Ultra Vision concession titles valid from 2020 to 2040.

iii) In January 2020, CTE acquired licenses by Ps.620,052 for 12 pairs of frequencies, advance payment of Advanced Wireless Services (AWS) band and complementary payment of AWS band of block 4.

iv) In 2020, TAG acquired licenses for the right of us for Ps.1,704,280, in Slovenia and VIP Movil 1940E.

v) Additionally, in 2020, the Company acquired other licenses in Puerto Rico, Argentina, Uruguay, Honduras, Paraguay, Brasil and other countries in the amount of Ps.1,701,682.

Amortization of intangibles for the years ended December 31, 2018, 2019 and 2020 amounted to Ps.25,798,610, Ps.20,209,434 and Ps.20,338,080, respectively.

Some of the jurisdictions in which the Company operates can revoke their concessions under certain circumstances such as imminent danger to national security, national economy and natural disasters.

F-47

12. Business combinations, acquisitions and non-controlling interest

a) The following is a description of the major acquisitions of investments in associates and subsidiaries during the years ended December 31, 2019 and 2020:

Acquisitions 2019

a) On January 24, 2019, the Company acquired 100% of Telefónica Móviles Guatemala, S.A (“Telefónica Guatemala”) from Telefónica S.A. and certain of its affiliates. The acquired company provides mobile and fixed telecommunications services, including voice, data and Pay TV. The final purchase price paid for the business acquisition was Ps.5,734,254, net of acquired cash. For the purchase accounting, the Company determined the fair value of Telefónica Guatemala´s identifiable assets and liabilities based on relative fair values. The purchase accounting is completed as of the date of the financial statements and the values of the assets acquired and liabilities assumed are as follows:

	2019 amounts at the acquisition date
Current assets	Ps.	1,312,906
Other non-current assets		257,853
Intangible assets (excluding goodwill)		1,354,105
Property, plant and equipment		4,144,334
Rights-of-use		864,046
Total assets acquired		7,933,244
Accounts payable		1,248,470
Other liabilities		1,705,580
Total liabilities assumed		2,954,050
Fair value of assets acquired a liabilities assumed-net		4,979,194
Acquisition Price		6,174,330
Goodwill	Ps.	1,195,136

b) On December 18, 2019, after receipt of the necessary approvals from local regulators, the Company completed the previously announced acquisition of 100% of Nextel Telecomunicações Ltda. and its subsidiaries (“Nextel Brazil”), from NII Holdings, Inc. and certain of its affiliates (“NII”) and AI Brazil Holdings B.V. Nextel Brazil provides nationwide mobile telecommunications services.

The aggregate purchase price was Ps.17,992,362, after making adjustments pursuant to the Purchase Agreement. After deducting Ps.9,325,712 of net debt, the net purchase consideration transferred at closing was Ps.6,905,539 net of acquired cash.

The net assets recognized in the 31 December 2019 financial statements were based on provisional amounts, the Company finished the Purchase Price allocation adjusting some values mainly for the spectrum licenses from the provisional goodwill, as a result the final goodwill was Ps.1,912,372.

F-48

The final amounts as of the date of the financial statement and the values of the assets acquired and liabilities assumed are as follows:

	2019 amounts at the acquisition date
Current assets		Ps. 6,366,943
Other non-current assets		5,970,810
Intangible assets (excluding goodwill)		12,914,175
Property, plant and equipment		5,147,093
Rights-of-use assets		8,086,655
Total assets acquired		38,485,676
Accounts payable		9,170,230
Other liabilities		22,504,097
Total liabilities assumed		31,674,327
Fair value of assets acquired a liabilities assumed-net		6,811,349
Purchase consideration transferred		8,723,721
Goodwill		Ps. 1,912,372

Acquisitions 2020

a) During 2020, the Company acquired through its subsidiaries, other entities for which it paid Ps.152,896, net of acquired cash.

b) The Company acquired an additional non-controlling interest in its entities for an amount of Ps.1,104,662.

c) In December 2020, the offer submitted by our Brazilian subsidiary, Claro, jointly with Telefónica Brasil, S.A. and TIM, S.A. for the acquisition of the mobile business owned by Oi Group was accepted. The offer is in the amount of R$16.5 billion, of which Claro will pay 22%. In consideration of such amount, Claro will receive 32% of Oi Group’s mobile business customer base and approximately 4.7 thousand mobile access sites. The closing of the transaction is subject to customary conditions including regulatory approvals from Anatel and Conselho Administrativo de Defesa Econômica, CADE.

F-49

Consolidated subsidiaries with non-controlling interests

The Company has control over Telekom Austria, which has a material non-controlling interest. Set out below is summarized information as of December 31, 2019 and 2020 of TKA’s consolidated financial statements. The amounts disclosed for this subsidiary are before inter-company eliminations and using the same accounting policies of América Móvil.

Selected financial data from the consolidated statements of financial position

	December 31,
	2019		2020
Assets:
Current assets		Ps.  29,516,038		Ps.  32,775,046
Non-current assets		137,724,390		150,747,947
Total assets		Ps.167,240,428		Ps.183,522,993
Liabilities and equity:
Current liabilities		Ps.  34,608,254		Ps.  49,942,415
Non-current liabilities		89,711,288		82,293,652
Total liabilities		124,319,542		132,236,067
Equity attributable to equity holders of the parent		21,864,132		26,129,649
Non-controlling interest (1)		21,056,754		25,157,277
Total equity		Ps.  42,920,886		Ps.  51,286,926
Total liabilities and equity		Ps.167,240,428		Ps.183,522,993

Summarized consolidated statements of comprehensive income

	For the year ended December 31,
	2018		2019		2020
Operating revenues		Ps.100,716,444		Ps.98,420,289		Ps.111,472,191
Operating costs and expenses		95,984,880		89,732,428		98,312,325
Operating income		Ps.    4,731,564		Ps.  8,687,861		Ps.  13,159,866
Net income		Ps.    3,809,694		Ps.  5,051,145		Ps.    7,787,388
Total comprehensive income		Ps.    5,047,838		Ps.  1,466,783		Ps.  12,103,406
Net income attributable to:
Equity holders of the parent		Ps.    1,942,944		Ps.  2,565,733		Ps.    3,986,412
Non-controlling interest		1,866,750		2,485,412		3,800,976
		Ps.    3,809,694		Ps.  5,051,145		Ps.    7,787,388
Comprehensive income attributable to:
Equity holders of the parent		Ps.    2,574,397		Ps.    748,059		Ps.    6,172,737
Non-controlling interest		2,473,441		718,724		5,930,669
		Ps.    5,047,838		Ps. 1,466,783		Ps.  12,103,406

13. Income Taxes

As explained previously in these consolidated financial statements, the Company is a Mexican corporation which has numerous consolidated subsidiaries operating in different countries. Presented below is a discussion of income tax matters that relates to the Company’s consolidated operations, its Mexican operations and significant foreign operations.

F-50

i) Consolidated income tax matters

The composition of income tax expense for the years ended December 31, 2018, 2019 and 2020 is as follows:

	2018			2019		2020
In Mexico:
Current year income tax	Ps.	28,572,414		Ps.	26,295,431	Ps.	13,407,948
Deferred income tax		(2,688,727	)		208,658		(9,334,246	)
Foreign:
Current year income tax		19,898,728			20,843,720		15,250,218
Deferred income tax		694,664			3,685,724		(2,957,768	)
	Ps.	46,477,079		Ps.	51,033,533	Ps.	16,366,152

Deferred tax related to items recognized in OCI during the year:

	For the years ended December 31,
	2018			2019			2020
Remeasurement of defined benefit plans		Ps.   408,735			Ps.9,217,320			Ps.   4,151,600
Equity investments at fair value		1,613,667			(378,606	)		(665,814	)
Other		(8,922	)		—			(35,670	)
Revaluation assets		—			—			(29,922,597	)
Deferred tax benefit recognized in OCI		Ps.2,013,480			Ps.8,838,714			Ps.(26,472,481	)
					��

A reconciliation of the statutory income tax rate in Mexico to the consolidated effective income tax rate recognized by the Company is as follows:

	Year ended December 31,
	2018			2019			2020
Statutory income tax rate in Mexico		30.0	%		30.0	%		30.0	%
Impact of non-deductible and non-taxable items:
Tax inflation effects		7.3	%		3.5	%		6.1	%
Derivatives		0.4	%		(0.1	%)		(0.7	%)
Employee benefits		1.3	%		1.8	%		3.0	%
Other		6.3	%		1.8	%		(2.4	%)
Effective tax rate on Mexican operations		45.3	%		37.0	%		36.0	%
Tax recoveries in Brazil		—			—			(9.3	%)
Dividends received from associates Equity		(0.8	%)		(0.4	%)		(0.9	%)
Foreign subsidiaries and other non-deductible items, net		1.5	%		5.5	%		(1.5	%)
Effective tax rate		46.0	%		42.1	%		24.3	%

F-51

An analysis of temporary differences giving rise to the net deferred tax liability is as follows:

	Consolidated statements of financial position						Consolidated statements of net income
	2019			2020			2018			2019			2020
Provisions	Ps.	17,964,305		Ps.	19,312,081		Ps.	1,841,705		Ps.	(257,070	)	Ps.	4,458,848
Deferred revenues		5,820,260			6,748,101			3,632,051			(1,077,259	)		897,762
Tax losses carry forward		26,630,407			25,121,933			(5,833,660	)		(9,873	)		2,236,244
Property, plant and equipment (1)		(11,962,544	)		(39,459,549	)		453,493			(461,594	)		3,524,761
Inventories		1,787,065			(537,404	)		81,270			(291,531	)		(2,393,979	)
Licenses and rights of use (1)		(3,399,931	)		(5,177,924	)		961,402			432,403			344,729
Employee benefits		41,743,744			45,467,827			1,128,209			(1,019,042	)		422,473
Other		9,491,550			14,828,012			(270,407	)		(1,210,417	)		2,801,176
Net deferred tax assets	Ps.	88,074,856		Ps.	66,303,077
Deferred tax expense in net profit for the year							Ps.	1,994,063		Ps.	(3,894,383	)	Ps.	12,292,014

(1) As of December 31, 2020 the balance included the effects of hyperinflation and revaluation of telecommunications towers.

Reconciliation of deferred tax assets and liabilities, net:

	2018			2019			2020
Opening balance as of January 1,		Ps. 104,573,985			Ps.  86,613,327			Ps.  88,074,856
Deferred tax benefit		1,994,063			(3,894,383	)		12,292,014
Translation effect		(8,854,010	)		2,047,915			375,105
Deferred tax benefit recognized in OCI		2,013,480			8,838,714			(26,472,481	)
Deferred taxes acquired in business combinations		(25,827	)		(276,568	)		(2,580,552	)
Hyperinflationary effect in Argentina		(4,907,151	)		(5,254,149	)		(5,385,865	)
Effect of adoption of IFRS 9		544,628			—			—
Effect of adoption of IFRS 15		(8,725,841	)		—			—
Closing balance as of December 31,		Ps.  86,613,327			Ps.  88,074,856			Ps. 66,303,077
Presented in the consolidated statements of financial position as follows:
Deferred income tax assets		Ps.111,186,768			Ps.106,167,897			Ps.115,370,240
Deferred income tax liabilities		(24,573,441	)		(18,093,041	)		(49,067,163	)
		Ps.  86,613,327			Ps.  88,074,856			Ps.  66,303,077

The deferred tax assets are in tax jurisdictions in which the Company considers that based on financial projections of its cash flows, results of operations and synergies between subsidiaries, will generate sufficient taxable income in subsequent periods to utilize or realize such assets.

The Company does not recognize a deferred tax liability related to the undistributed earnings of its subsidiaries, because it currently does not expect these earnings to be taxable or to be repatriated in the near future. The Company’s policy has been to distribute the profits when it has paid the corresponding taxes in its home jurisdiction and the tax can be accredited in Mexico.

At December 31, 2019 and 2020, the balance of the contributed capital account (“CUCA”) is Ps.551,221,490 and Ps.573,362,949 respectively. Effectively, on January 1, 2014, the Cuenta de Utilidad Fiscal Neta (“CUFIN”) is computed on an América Móvil’s stand-alone basis. The balance of the América Móvil’s stand-alone basis CUFIN amounted to Ps.320,880,512 and Ps.332,273,039 as of December 31, 2019 and 2020, respectively.

F-52

ii) Significant foreign income tax matters

a) Results of operations

The foreign subsidiaries determine their taxes on profits based on their individual taxable income, in accordance with the specific tax regimes of each country.

The effective income tax rate for the Company’s foreign jurisdictions was 31% in 2018, 40% in 2019 and 18% in 2020. The statutory tax rates in these jurisdictions vary, although many approximate 10% to 34%. The primary difference between the statutory rates and the effective rates in 2018, 2019 and 2020 was attributable to dividends received from KPN, other non-deductible items, non-taxable income and tax recoveries in Brazil.

a.1) In 2020 the Claro Brasil began to use the tax benefit related to the ICMS Grant on TV based on Complementary Law 160/2017 and art. 30 of Law 12,973, as well as in recent interpretations on the subject, investment grants are not computed in determining actual profit in the amount of Ps.1,721,453 (R$411,336). The Company kicked back the application of the benefit for the years 2018 and 2019, with a total impact of Ps.2,748,084 (R$656,646).

iii)    Tax losses

a) At December 31, 2020, the available tax loss carryforwards recorded in deferred tax assets are as follows on a country by country basis:

Country	Gross balance of available tax loss carryforwards at December 31, 2020		Tax-effected loss carryforward benefit
Brazil	Ps.	44,578,152	Ps.	15,156,572
Mexico		20,523,070		6,156,920
Austria		11,631,381		2,907,845
United States		3,023,441		786,095
Peru		380,770		112,327
Puerto Rico		5,574		2,174
Total	Ps.	80,142,388	Ps.	25,121,933

b) The tax loss carryforwards in the different countries in which the Company operates have the following terms and characteristics:

bi) The Company has accumulated Ps.44,578,152 in net operating loss carryforwards (NOL’s) in Brazil as of December 31, 2020. In Brazil, there is no expiration of the NOL’s. However, the NOL´s amount used against taxable income in each year may not exceed 30% of the taxable income for such year. Consequently, in the year in which taxable income is generated, the effective tax rate is 25% rather than the 34% corporate tax rate.

The Company believes that it is more likely than not that the accumulated balances of its net deferred tax assets are recoverable, based on the positive evidence of the Company to generate future taxable income related to the same taxation authority which will result in taxable amounts against which the available tax losses can be utilized before they expire.

bii) The Company has accumulated Ps.20,523,070 in tax losses in Mexico. The company estimates that there is positive evidence that allows it to use these losses, these should be reduced to the extent that it is considered likely that there will be sufficient taxable profits to allow them to recover in full or in part, the losses will only be compensated when there is a right legally required and are approved by the tax authorities in Mexico.

F-53

biii) The Company has accumulated Ps.11,631,381 in NOL’s in Austria as of December 31, 2020. In Austria, the NOL´s have no expiration, but its annual usage is limited to 75% of the taxable income of the year. The realization of deferred tax assets is dependent upon the expected generation of future taxable income during the periods in which these temporary differences become deductible.

iv)    Optional regime

The Mexican Tax Law establishes an optional regime for group companies called: Optional Regime for Groups of Companies. For these purposes, the integrating (controlling) company must own more than 80% of the shares with voting rights of the integrated (controlled) companies. In general terms, the Integration regime allowed deferral, for each of the companies that make up the group, and for up to three years, or sooner if certain assumptions are made, the whole of the income tax that results from considering the determination of the individual income tax to its charge is the effect derived from recognizing, indirectly, the tax losses incurred by the companies in the group for the year in question.

On December 19, 2019, the integrating company submitted to the Mexican tax authorities, the notice to end to belong under the Optional Regime for Groups of Companies, which implies, pay in January 2020, the deferred income tax for the years 2016-2018. Therefore, from the year 2020, the group will be taxable under the General Regime for Legal Persons.

v)     Limiting interest deductions

The Mexican Tax Law establishes for 2020 further new rules related with the limiting interest deductions, in concordance with the action 4 of Base Erosion and Profit Shifting (BEPS) project, by Organization for Economic Co-operation and Development (OCDE), whom Mexico is member.

In general terms, each Mexican companies should calculated a Tax EBITDA, whose amount by the corporate income tax, will be the limit allow to deduct in the tax year it’s important to underline the amount that was not deductible could be carryforward in the following ten years.

vi)     Revaluation of telecommunications towers

Deferred taxes related to the revaluation of the passive infrastructure of the telecommunications towers have been calculated at the tax rate of the jurisdiction in which the subsidiaries are located.

F-54

14. Debt

a) The Company’s short-and long-term debt consists of the following:

The Company’s short-and long-term debt consists of the following:

At December 31, 2019						(Thousands of Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)		5.000%		2020		Ps. 11,774,764
	Fixed-rate Senior notes (i)		3.125%		2022		30,152,320
	Fixed-rate Senior notes (i)		3.625%		2029		18,845,200
	Fixed-rate Senior notes (i)		6.375%		2035		18,493,360
	Fixed-rate Senior notes (i)		6.125%		2037		6,958,119
	Fixed-rate Senior notes (i)		6.125%		2040		37,690,400
	Fixed-rate Senior notes (i)		4.375%		2042		21,671,980
	Fixed-rate Senior notes (i)		4.375%		2049		23,556,500
	Subtotal U.S. dollars						Ps.169,142,643
Mexican pesos
	Domestic Senior notes (i)		8.600%		2020		Ps.    7,000,000
	Fixed-rate Senior notes (i)		6.450%		2022		22,500,000
	Fixed-rate Senior notes (i)		7.125%		2024		11,000,000
	Domestic Senior notes (i)		0.000%		2025		4,757,592
	Fixed-rate Senior notes (i)		8.460%		2036		7,871,700
	Domestic Senior notes (i)		8.360%		2037		5,000,000
	Subtotal Mexican pesos						Ps.  58,129,292
Euros
	Commercial Paper (iv)		-0.230%		2020		Ps.    2,599,128
	Exchangeable Bond (i)		0.000%		2020		60,051,270
	Fixed-rate Senior notes (i)		3.000%		2021		21,131,123
	Fixed-rate Senior notes (i)		3.125%		2021		15,848,342
	Fixed-rate Senior notes (i)		4.000%		2022		15,848,342
	Fixed-rate Senior notes (i)		4.750%		2022		15,848,342
	Fixed-rate Senior notes (i)		3.500%		2023		6,339,337
	Fixed-rate Senior notes (i)		3.259%		2023		15,848,342
	Fixed-rate Senior notes (i)		1.500%		2024		17,961,454
	Fixed-rate Senior notes (i)		1.500%		2026		15,848,342
	Fixed-rate Senior notes (i)		0.750%		2027		21,131,123
	Fixed-rate Senior notes (i)		2.125%		2028		13,735,230
	Subtotal Euros						Ps.222,190,375
Pound Sterling
	Fixed-rate Senior notes (i)		5.000%		2026		Ps.  12,491,541
	Fixed-rate Senior notes (i)		5.750%		2030		16,239,003
	Fixed-rate Senior notes (i)		4.948%		2033		7,494,924
	Fixed-rate Senior notes (i)		4.375%		2041		18,737,311
	Subtotal Pound Sterling						Ps.  54,962,779
Brazilian reais
	Debentures (i)		102.900% of CDI		2020		Ps.    7,013,124
	Debentures (i)		104.000% of CDI		2021		5,142,958
	Debentures (i)		104.250% of CDI		2021		7,083,256
	Promissory notes (i)		CDI + 0.600%		2021		1,683,150
	Promissory notes (i)		106.000% of CDI		2022		9,350,832
	Promissory notes (i)		106.500% of CDI		2022		4,675,416
	Subtotal Brazilian reais						Ps.  34,948,736
Other currencies
Japanese yen
	Fixed-rate Senior notes (i)		2.950%		2039		Ps.    2,255,663
	Subtotal Japanese yen						Ps.    2,255,663

F-55

At December 31, 2019						(Thousands of Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Chilean pesos
	Fixed-rate Senior notes (i)		3.961%		2035		Ps.    3,562,695
	Subtotal Chilean pesos						Ps.    3,562,695
	Subtotal other currencies						Ps.    5,818,358
Hybrid Notes
Euros
	Euro NC10 Series B Capital Securities (iii)		6.375%		2073		Ps.  11,622,118
	Subtotal Euros						Ps.  11,622,118
Pound Sterling
	GBP NC7 Capital Securities (iii)		6.375%		2073		Ps.  13,740,695
	Subtotal Pound Sterling						Ps.  13,740,695
	Subtotal Hybrid Notes						Ps.  25,362,813
Lines of Credit and others
U.S. dollars
	Lines of credit (ii)		5.500% - 9.020%		2020 - 2024		Ps.    9,359,340
Mexican pesos
	Lines of credit (ii)		TIIE + 0.050% - TIIE + 0.090%		2020		Ps.  22,000,000
Euros
	Lines of credit (ii)		0.030%		2020		Ps.    2,113,112
Peruvian Soles
	Lines of credit (ii)		3.550% - 3.700%		2020 - 2021		Ps.  15,351,211
Chilean pesos
	Lines of credit (ii)		TAB + 0.350%		2021		Ps.    4,821,222
	Financial Leases		8.700% - 8.970%		2020 - 2027		Ps.         54,596
	Subtotal Lines of Credit and others						Ps.  53,699,481
	Total debt						Ps.624,254,477
	Less: Short-term debt and current portion of long-term debt						Ps.129,172,033
	Long-term debt						Ps.495,082,444

F-56

At December 31, 2020						(Thousands of Mexican pesos)
Currency	Loan	Interest rate		Maturity		Total
Senior Notes
U.S. dollars
	Fixed-rate Senior notes (i)		3.125%		2022	Ps.	31,917,920
	Fixed-rate Senior notes (i)		3.625%		2029		19,948,700
	Fixed-rate Senior notes (i)		2.875%		2030		19,948,700
	Fixed-rate Senior notes (i)		6.375%		2035		19,576,258
	Fixed-rate Senior notes (i)		6.125%		2037		7,365,559
	Fixed-rate Senior notes (i)		6.125%		2040		39,897,400
	Fixed-rate Senior notes (i)		4.375%		2042		22,941,005
	Fixed-rate Senior notes (i)		4.375%		2049		24,935,875
	Subtotal U.S. dollars					Ps.	186,531,417
Mexican pesos
	Fixed-rate Senior notes (i)		6.450%		2022	Ps.	22,500,000
	Fixed-rate Senior notes (i)		7.125%		2024		11,000,000
	Domestic Senior notes (i)		0.000%		2025		4,911,181
	Fixed-rate Senior notes (i)		8.460%		2036		7,871,700
	Domestic Senior notes (i)		8.360%		2037		5,000,000
	Subtotal Mexican pesos					Ps.	51,282,881
Euros
	Fixed-rate Senior notes (i)		3.000%		2021	Ps.	24,369,332
	Fixed-rate Senior notes (i)		3.125%		2021		18,276,999
	Fixed-rate Senior notes (i)		4.000%		2022		18,276,999
	Fixed-rate Senior notes (i)		4.750%		2022		18,276,999
	Fixed-rate Senior notes (i)		3.500%		2023		7,310,800
	Fixed-rate Senior notes (i)		3.259%		2023		18,276,999
	Fixed-rate Senior notes (i)		1.500%		2024		20,713,932
	Fixed-rate Senior notes (i)		1.500%		2026		18,276,999
	Fixed-rate Senior notes (i)		0.750%		2027		24,369,332
	Fixed-rate Senior notes (i)		2.125%		2028		15,840,066
	Commercial Paper (iv)		-0.230% -0.310%		2021		40,940,477
	Subtotal Euros					Ps.	224,928,934
Pound Sterling
	Fixed-rate Senior notes (i)		5.000%		2026	Ps.	13,634,936
	Fixed-rate Senior notes (i)		5.750%		2030		17,725,417
	Fixed-rate Senior notes (i)		4.948%		2033		8,180,962
	Fixed-rate Senior notes (i)		4.375%		2041		20,452,405
	Subtotal Pound Sterling					Ps.	59,993,720
Brazilian reais
	Debentures (i)		104.000% of CDI		2021	Ps.	4,222,597
	Debentures (i)		104.250% of CDI		2021		5,815,668
	Promissory notes (i)		CDI + 0.600%		2021		1,381,941
	Debentures (i)		CDI + 0.960%		2022		9,596,811
	Promissory notes (i)		106.000% of CDI		2022		7,677,449
	Debentures (i)		106.500% of CDI		2022		3,838,725
	Subtotal Brazilian reais					Ps.	32,533,191
Other currencies
Japanese yen
	Fixed-rate Senior notes (i)		2.950%		2039	Ps.	2,511,701
	Subtotal Japanese yen					Ps.	2,511,701
Chilean pesos
	Fixed-rate Senior notes (i)		3.961%		2035	Ps.	4,078,453
	Subtotal Chilean pesos					Ps.	4,078,453
	Subtotal other currencies					Ps.	6,590,154
Hybrid Notes
Euros
	Euro NC10 Series B Capital Securities (iii)		6.375%		2073	Ps.	13,403,133
	Subtotal Euros					Ps.	13,403,133
	Subtotal Hybrid Notes					Ps.	13,403,133

F-57

At December 31, 2020					(Thousands of Mexican pesos)
Currency	Loan	Interest rate	Maturity		Total
Lines of Credit and others
Mexican pesos
	Lines of credit (ii)	TIIE + 0.300% - TIIE + 1.000%		2021	Ps.	27,100,000
Peruvian Soles
	Lines of credit (ii)	1.200% - 1.450%		2021	Ps.	17,094,079
Chilean pesos
	Lines of credit (ii)	TAB + 0.350% and TAB + 0.450%		2021	Ps.	8,868,181
	Financial Leases	8.700% - 8.970%		2021 - 2027	Ps.	57,266
	Subtotal Lines of Credit and others				Ps.	53,119,526
	Total debt				Ps.	628,382,956
	Less: Short-term debt and current portion of long-term debt				Ps.	148,083,184
	Long-term debt				Ps.	480,299,772

L= LIBOR (London Interbank Offered Rate)

TIIE = Mexican Interbank Rate

CDI = Brazil Interbank Deposit Rate

TAB= Chilean weighted average funding rate

Interest rates on the Company’s debt are subject to variances in international and local rates. The Company’s weighted average cost of borrowed funds at December 31, 2019, and December 31, 2020 was approximately 4.16% and 3.72%, respectively.

Such rates do not include commissions or the reimbursements for Mexican tax withholdings (typically a tax rate of 4.9%) that the Company must pay to international lenders.

An analysis of the Company’s short-term debt maturities as of December 31, 2019, and December 31, 2020, is as follows:

	2019			2020
Obligations and Senior Notes	Ps.	88,438,286		Ps.	95,007,014
Lines of credit		40,722,004			53,062,260
Financial Leases		11,743			13,910
Total	Ps.	129,172,033		Ps.	148,083,184
Weighted average interest rate		3.31	%		2.23	%

The Company’s long-term debt maturities as of December 31, 2020 are as follows:

Years	Amount
2022	Ps.	112,091,112
2023		25,594,561
2024		31,721,298
2025 and thereafter		310,892,801
Total	Ps.	480,299,772

F-58

(i) Senior Notes

The outstanding Senior Notes at December 31, 2019, and December 31, 2020, are as follows:

Currency*	2019		2020
U.S. dollars	Ps.	169,142,643	Ps.	186,531,417
Mexican pesos		58,129,292		51,282,881
Euros**		222,190,375		183,988,456
Pounds sterling**		54,962,779		59,993,720
Brazilian reais		34,948,736		32,533,191
Japanese yens		2,255,663		2,511,701
Chilean pesos		3,562,695		4,078,453

* Thousands of Mexican pesos

** Includes secured and unsecured senior notes.

(ii) Lines of credit

At December 31, 2019, and December 31, 2020, debt under lines of credit aggregated to Ps.$53,645 million and Ps.$53,062 million, respectively.

The Company has two revolving syndicated credit facilities, one for the Euro equivalent of U.S. $2,000 million and the other for U.S. $2,500 million maturing in 2021 and 2024, respectively. As long as the facilities are committed, a commitment fee is paid. As of December 31, 2020, these credit facilities are undrawn. Telekom Austria has an undrawn revolving syndicated credit facility in Euros for €1,000 million that matures in 2026.

(iii) Hybrid Notes

We currently have a Capital Securities (hybrid notes) maturing in 2073: a series denominated in euros for a total amount of €550 million with a coupon of 6.375%. The Capital Securities are deeply subordinated, and when they were issued the principal rating agencies stated that they would treat only half of the principal amount as indebtedness for purposes of evaluating our leverage (an analysis referred to as 50.0% equity credit). The Capital Securities are subject to redemption at our option at varying dates beginning in 2023 for the euro-denominated series.

(iv) Commercial Paper

In August 2020, we established a new Euro-Commercial Paper program for a total amount of €2,000 million. At December 31, 2020, debt under this program aggregated to Ps.40,940 million.

Restrictions

A portion of the debt is subject to certain restrictions with respect to maintaining certain financial ratios, as well as restrictions on selling a significant portion of groups of assets, among others. At December 31, 2020, the Company was in compliance with all these requirements.

A portion of the debt is also subject to early maturity or repurchase at the option of the holders in the event of a change in control of the Company, as defined in each instrument. The definition of change in control varies from instrument to instrument; however, no change in control shall be considered to have occurred as long as its current shareholders continue to hold the majority of the Company’s voting shares.

F-59

Covenants

In conformity with the credit agreements, the Company is obliged to comply with certain financial and operating commitments. Such covenants limit in certain cases, the ability of the Company or the guarantor to: pledge assets, carry out certain types of mergers, sell all or substantially all of its assets, and sell control of Telcel.

Such covenants do not restrict the ability of AMX’s subsidiaries to pay dividends or other payment distributions to AMX. The more restrictive financial covenants require the Company to maintain a consolidated ratio of debt to EBITDA (defined as operating income plus depreciation and amortization) that does not exceed 4 to 1, and a consolidated ratio of EBITDA to interest paid that is not below 2.5 to 1 (in accordance with the clauses included in the credit agreements).

Several of the financing instruments of the Company may be accelerated, at the option of the debt holder in the case that a change in control occurs.

At December 31, 2020, the Company was in compliance with all the covenants.

15. Right-of-use assets and lease debt

The Company has lease contracts for various items of towers & sites, property and other equipment used in its operations. Towers and sites generally have lease terms between 5 and 12 years, while property and other equipment generally have lease terms between 5 and 25 years.

At December 31, 2019 and 2020 the right-of-use assets and lease liabilities are as follows:

	Right-of-use assets												Liability related to right-of-use of assets
	Towers & Sites			Property			Other equipment			Total
As of January 1, 2019	Ps.	94,252,098		Ps.	21,075,884		Ps.	4,750,320		Ps.	120,078,302		Ps.	119,387,660
Additions and release		6,364,508			921,542			729,001			8,015,051			7,437,621
Business Combinations		9,668,507			—			—			9,668,507			10,810,111
Modifications		7,474,469			1,288,974			728,837			9,492,280			8,363,045
Depreciation		(17,286,497	)		(4,941,222	)		(1,365,847	)		(23,593,566	)		—
Interest expense		—			—			—			—			7,940,240
Payments		—			—			—			—			(26,765,075	)
Translation adjustment		(4,370,636	)		(905,808	)		(380,907	)		(5,657,351	)		(6,576,869	)
Balance at December 31, 2019	Ps.	96,102,449		Ps.	17,439,370		Ps.	4,461,404		Ps.	118,003,223		Ps.	120,596,733
Balance at the beginning of the year	Ps.	96,102,449		Ps.	17,439,370		Ps.	4,461,404		Ps.	118,003,223		Ps.	120,596,733
Additions and release		5,745,869			309,576			1,514,519			7,569,964			4,833,959
Modifications		8,559,335			(3,035,831	)		1,048,858			6,572,362			7,769,326
Depreciation		(22,064,413	)		(3,440,428	)		(2,866,244	)		(28,371,085	)		—
Interest expense		—			—			—			—			9,134,288
Payments		—			—			—			—			(29,623,565	)
Translation adjustment		(3,124,365	)		932,748			393,997			(1,797,620	)		(3,383,500	)
Balance at December 31, 2020	Ps.	85,218,875		Ps.	12,205,435		Ps.	4,552,534		Ps.	101,976,844		Ps.	109,327,241

At December 31, 2019 and 2020, the total of the right-of-use assets include an amount of Ps.22,878,245 and Ps.$18,499,851, corresponding to related parties, respectively and the total of lease liabilities include an amount of Ps.23,805,275 and Ps.$20,016,478 corresponding to related parties, respectively.

The implementation of IFRS 16 required a significant effort due to the fact of the need to make certain estimates, such as the lease term, based on the non-cancelable period and the periods covered by options to extend the lease. The

F-60

Company considered the extension of the lease terms beyond the non-cancelable period only when it was reasonably certain to extend it. The reasonability of the extension was affected by several factors, such as regulation, business model, and geographical business strategies.

The lease debt of the Company is integrated according to its maturities as follows:

	2020
Short term	Ps.	25,067,905
Long term		84,259,336
Total	Ps.	109,327,241

The Company’s long-term debt maturities as of December 31, 2020 are as follows:

Year ended December 31,
2022	Ps.	35,744,268
2023		12,778,050
2024		9,606,195
2025 and thereafter		26,130,823
Total	Ps.	84,259,336

During the years ended December 31 2019 and 2020, the Company recognized expenses as follows:

	2019
	Others		Related parties		Total
Depreciation expense of right-of-use assets		Ps.18,176,521		Ps.5,417,045		Ps.23,593,566
Interest expense on lease liabilities		5,654,721		2,285,519		7,940,240
Expense relating to short-term leases		1,978,403		1,958		1,980,361
Expense relating to leases of low-value assets		25,935		—		25,935
Variable lease payments		1,299,502		—		1,299,502
Total		Ps.27,135,082		Ps.7,704,522		Ps.34,839,604

	2020
	Others		Related parties		Total
Depreciation expense of right-of-use assets		Ps.22,404,924		Ps.5,966,161		Ps.28,371,085
Interest expense on lease liabilities		7,081,693		2,052,595		9,134,288
Expense relating to short-term leases		32,238		—		32,238
Expense relating to leases of low-value assets		2,883		—		2,883
Variable lease payments		78,494		—		78,494
Total		Ps.29,600,232		Ps.8,018,756		Ps.37,618,988

Impact on accounting for changes in lease payments applying the exemption.

Based on the information available for evaluation as of the date of adoption, the effect of applying this amendment to IFRS 16 in the Company’s consolidated financial statements as of December 31, 2020 was Ps.277,680, reflecting an adjustment to accrued liability for leases and recognizing a benefit in the income statement for the period.

F-61

16. Accounts payable, accrued liabilities and asset retirement obligations

a) The components of the captions account payable and accrued liabilities are as follows:

	At December 31,
	2019		2020
Suppliers		Ps.113,370,716		Ps.74,285,881
Sundry creditors		90,849,195		101,406,307
Interest payable		8,057,170		7,661,762
Guarantee deposits from customers		1,467,835		1,386,645
Dividends payable		2,367,908		2,254,877
Total		Ps.216,112,824		Ps.186,995,472

b) The balance of accrued liabilities at December 31, 2019 and 2020 are as follows:

	At December 31,
	2019		2020
Current liabilities
Direct employee benefits payable	Ps.	17,991,283	Ps.	18,965,160
Contingencies		34,379,969		31,326,691
Total	Ps.	52,371,252	Ps.	50,291,851

The movements in contingencies for the years ended December 31, 2019 and 2020 are as follows:

	Balance at December 31, 2018		Business combination		Effect of translation			Increase of the year		Applications						Reclassification by adoption of IFRIC 23			Balance at December 31, 2019
										Payments			Reversals
Contingencies	Ps.	40,281,573	Ps.	1,378,611	Ps.	(2,302,058	)	Ps.	6,410,975	Ps.	(5,483,327	)	Ps.	(1,833,518	)	Ps.	(4,072,287	)	Ps.	34,379,969

Balance at December 31, 2019

Business combination

Effect of translation

Increase of the year

Applications

Balance at December 31, 2020

Payments

Reversals

Contingencies

Ps.

34,379,969

Ps.

292

Ps.

(4,290,753

)

Ps.

7,442,292

Ps.

(3,214,407

)

Ps.

(2,990,702

)

Ps.

31,326,691

Contingencies include tax, labor, regulatory and other legal type contingencies. See Note 17 b) for detail of contingencies.

c) The movements in the asset retirement obligations for the years ended December 31, 2019 and 2020 are as follows:

Balance at December 31, 2018

Business combination

Effect of translation

Increase of the year

Applications

Balance at December 31, 2019

Payments

Reversals

Asset retirement obligations

Ps.

15,971,601

Ps.

293,548

Ps.

(1,339,033

)

Ps.

1,600,197

Ps.

(128,842

)

Ps.

(580,727

)

Ps.

15,816,744

Balance at December 31, 2019

Business combination

Effect of translation

Increase of the year

Applications

Balance at December 31, 2020

Payments

Reversals

Asset retirement obligations

Ps.

15,816,744

Ps.

—

Ps.

374,418

Ps.

2,412,908

Ps.

(593,644

)

Ps.

(122,435

)

Ps.

17,887,991

The discount rates used for the asset retirement obligation are based on market rates that are expected to be undertaken by the dismantling or restoration of cell sites and may include labor costs.

F-62

17. Commitments and Contingencies

a) Commitments

The Company and its subsidiaries have commitments that mature on different dates, related to committed capital expenditures and cell phone purchases.

As of December 31, 2020, the total amounts equivalent to the contract period are detailed below:

Year ended December 31,
2021	Ps.	74,446,526
2022		37,345,449
2023		2,240,297
2024 and thereafter		13,555,946
Total	Ps.	127,588,218

b) Contingencies

In each of the countries in which we operate, we are party to legal proceedings in the ordinary course of business. These proceedings include tax, labor, antitrust, contractual matters and administrative and judicial proceedings concerning regulatory matters regarding interconnection and tariffs. The following is a description of our material legal proceedings.

(1) Mexican Tax Assessment and Fine

In 2014, the Mexican Tax Administration Service (Servicio de Administración Tributaria) (“SAT”) notified the Company a Ps.529,700 tax assessment related to the Company’s tax return for the fiscal year ended December 31, 2005, pursuant to which the SAT has determined a reduction of the Company’s consolidated tax loss for such year from Ps.8,556,000 to zero. Furthermore, in 2012 the SAT notified the Company’s subsidiary Sercotel, S.A. de C.V. a tax assessment of approximately Ps.1,400,000. The Company and such subsidiary challenged these tax assessments and once all corresponding instances had been concluded, during the second half of 2020, the Federal Tax Court issued a final judgment annulling such tax assessments.

(2) Telcel Mobile Termination Rates

The mobile termination rates between Telcel and other network operators have been the subject of various legal proceedings. With respect to interconnection fees for 2017, 2018, 2019, 2020 and 2021, Telcel has challenged the applicable resolutions and final resolutions are pending. With respect to 2021, Telcel will challenge the applicable resolutions.

Given that the “zero rate” that prevented Telcel from charging termination rates in its mobile network was held unconstitutional by the Supreme Court (Suprema Corte de Justicia de la Nación “SCJN”), the IFT has determined asymmetric interconnection rates for the termination of traffic in Telcel’s and other operators’ networks for 2018, 2019, 2020 and 2021. The resolutions setting such rates have been challenged by Telcel, and final resolutions are pending.

The Company expects that mobile termination rates, as well as other rates applicable to mobile interconnection (such as transit), will continue to be the subject of litigation and administrative proceedings. The Company cannot predict when or how these disputes will be resolved or the financial effects of any such resolution.

(3) Telcel Class Action Lawsuits

One of the three class action lawsuits that have been filed against Telcel by customers allegedly affected by Telcel’s quality of service and wireless and broadband rates continues in process, the remaining two lawsuits

F-63

have been concluded without any adverse effect on the Company. At this stage, the Company cannot assess whether this class action lawsuit could have an adverse effect on the Company’s business and results of operations in the event that it is resolved against Telcel, due to uncertainty about the factual and legal claims underlying this proceeding. Consequently, the Company has not established a provision in the accompanying consolidated financial statements for an eventual loss arising from this proceeding.

(4) IFT Proceedings Against Telmex

In 2018, the IFT imposed a fine of Ps.2,543,937 on Telmex relating to a sanction procedure triggered by the alleged breach in 2013 and 2014 of certain minimum quality goals for link services. Telmex challenged this fine, and a final resolution is pending.

(5) Brazilian Tax Matters

As of December 31, 2020, certain Company’s Brazilian subsidiaries had aggregate tax contingencies of Ps.119,231,362 (R$ 31,060,349) for which the Company has established provisions of Ps.17,643,740 (R$ 4,596,280) in the accompanying consolidated financial statements for eventual losses arising from contingencies that the Company considers probable. The most significant contingencies for which provisions have been established are:

• Ps.41,974,641 (R$ 10,934,598) aggregate contingencies and Ps.3,101,862 (R$ 808,050) provisions related to value-added tax (Imposto sobre a Circulação de Mercadorias e Prestação de Serviços or “ICMS”) assessments;

• Ps.20,151,371 (R$ 5,249,530) aggregate contingencies and Ps.3,319,251 (R$ 864,681) provisions related to social contribution on net income (Contribuição Social sobre o Lucro Líquido or “CSLL”) and corporate income tax (Imposto de Renda sobre Pessoa Jurídica or “IRPJ”) assessments;

• Ps.14,991,233 (R$ 3,905,289) aggregate contingencies and Ps.4,993,865 (R$ 1,300,926) provisions related to the social integration program (Programa de Integração Social or “PIS”) and the contribution for social security financing (Contribuição para o Financiamento da Seguridade Social or “COFINS”) assessments;

• Ps.11,476,895 (R$ 2,989,787) aggregate contingencies and Ps.1,428,756 (R$ 372,198) provisions mainly related to an allegedly improper exclusion of interconnection revenues and costs from the basis used to calculate Fund for Universal Telecommunication Services (Fundo de Universalização dos Serviços de Telecomunicações or “FUST”) obligations, which are being contested;

• Ps.4,410,628 (R$ 1,148,990) aggregate contingencies and Ps.656 (R$ 171) provisions related to an alleged underpayment of obligations to the Telecommunications Technology Development Fund (Fundo para o Desenvolvimento Tecnológico das Telecomunicações or “FUNTTEL”), which are being challenged and a final resolution is pending;

• Ps.1,688,790 (R$ 439,938) aggregate contingencies and Ps.46,947 (R$ 12,230) provisions related to the alleged nonpayment of Services Tax (Imposto Sobre Serviços or “ISS”) over several communication services, including Pay TV services, considered taxable for ISS by the Municipal Revenue Services, which are being challenged and a final resolution is pending;

• Ps.4,183,953 (R$ 1,089,940) aggregate contingencies and Ps.108,877 (R$ 28,363) provisions arising, among others, from the alleged underpayment of IRRF and CIDE taxes and on remittances made to foreign operators as remuneration for completing international calls abroad (outgoing traffic); and

• Ps.3,848,354 (R$ 1,002,515) aggregate contingencies and Ps.3,826,631 (R$ 996,856) provisions related to the requirement to contribute to the Promotion of Public Radio Broadcasting (“EBC”).

In addition, the Company’s Brazilian subsidiaries are subject to a number of contingencies for which it has not established provisions in the accompanying consolidated financial statements because the Company does not

F-64

consider the potential losses related to these contingencies to be probable. These include a fine for Ps.12,921,410 (R$ 3,366,090) imposed for an unpaid installation inspection fee (Taxa de Fiscalização de Instalação or “TFI”) allegedly due for the renovation of radio base stations, which is being challenged on the basis that there was no new equipment installation that could have led to this charge.

(6) Anatel Challenge to Inflation Adjustments

Anatel has challenged the calculation of inflation-related adjustments due under the concession agreements with Tess S.A. (“Tess”), and Algar Telecom Leste S.A. (“ATL”), two of the Company’s subsidiaries that were previously merged into Claro Brasil. Anatel rejected Tess and ATL’s calculation of the inflation-related adjustments applicable to 60% of the concessions price (which was due in three equal annual installments, subject to inflation-related adjustments and interest), claiming that the companies’ calculation of the inflationrelated adjustments resulted in a shortfall of the installment payments. The companies have filed declaratory and consignment actions seeking the resolution of the disputes and have obtained injunctions from a federal appeals court suspending payment until the pending appeals are resolved.

The amount of the alleged shortfall as well as the method used to calculate monetary corrections are in dispute. If other methods or assumptions are applied, the amount may increase. In 2019, Anatel calculated the monetary correction in a total amount of Ps.15,738,670 (R$ 4,100,000). As of December 31, 2020, the Company has established a provision of Ps.2,625,671 (R$ 684,000) in the accompanying consolidated financial statements for the losses arising from these contingencies, which the Company considers probable.

18. Employee Benefits

An analysis of the net liability and net period cost for employee benefits is as follows:

	At December 31,
	2019		2020
Mexico	Ps.	116,537,660	Ps.	129,260,355
Puerto Rico		13,228,592		14,924,874
Brazil		9,503,738		8,913,548
Europe		12,827,318		14,392,445
Ecuador		409,750		488,161
El Salvador				154,422
Nicaragua				61,337
Honduras				35,060
Total	Ps.	152,507,058	Ps.	168,230,202

	For the year ended December 31
	2018		2019		2020
Mexico	Ps.	12,046,208	Ps.	12,788,464	Ps.	14,911,208
Puerto Rico		686,067		747,755		664,046
Brazil		579,432		511,964		722,412
Europe		619,039		2,526,957		1,701,424
Ecuador		58,354		34,425		67,402
El Salvador						15,751
Nicaragua						3,711
		13,989,100	Ps.	16,609,565	Ps.	18,085,954

F-65

a) Defined Benefit Plans

The defined benefit obligation (DBO) and plan assets for the pension and other benefit obligation plans, by country, are as follows:

	At December 31
	2019									2020
	DBO		Plan Assets			Effect of asset celling		Net employee benefit liability		DBO		Plan Assets			Effect of asset celling		Net employee benefit liability
Mexico	Ps.	280,602,176	Ps.	(164,910,346	)	Ps.		Ps.	115,691,830	Ps.	278,434,302	Ps.	(150,090,481	)	Ps.		Ps.	128,343,821
Puerto Rico		35,803,893		(22,575,301	)				13,228,592		40,240,193		(25,315,319	)				14,924,874
Brazil		21,412,097		(18,815,174	)		4,428,021		7,024,944		18,568,932		(16,143,783	)		3,393,640		5,818,789
Europe		4,538,543							4,538,543		5,490,873							5,490,873
Total	Ps.	342,356,709	Ps.	(206,300,821	)	Ps.	4,428,021	Ps.	140,483,909	Ps.	342,734,300	Ps.	(191,549,583	)	Ps.	3,393,640	Ps.	154,578,357

Below is a summary of the actuarial results generated for the pension and retirement plans as well as the medical services in Puerto Rico and Brazil; the pension plans and seniority premiums related to Telmex; the pension plan, the service awards plan and severance in Austria corresponding to the years ended December 31, 2018, 2019 and 2020:

	At December 31, 2018
	DBO			Plan Assets			Effect of asset celling			Net employee benefit liability
Balance at the beginning of the year	Ps.	329,113,625		Ps.	(227,688,604	)	Ps.	6,519,560		Ps.	107,944,581
Current service cost		3,322,813									3,322,813
Interest cost on projected benefit obligation		30,185,257									30,185,257
Expected return on plan assets					(20,804,104	)					(20,804,104	)
Changes in the asset ceiling during the period and others								587,373			587,373
Past service costs and other					157,765						157,765
Actuarial gain for changes in experience		(7,222	)								(7,222	)
Actuarial loss from changes in demographic assumptions		134,625									134,625
Actuarial gain from changes in financial assumptions		(24,890	)								(24,890	)
Net period cost	Ps.	33,610,583		Ps.	(20,646,339	)	Ps.	587,373		Ps.	13,551,617
Actuarial gain for changes in experience		(21,283,470	)								(21,283,470	)
Actuarial loss from changes in demographic assumptions		68,482									68,482
Actuarial gain from changes in financial assumptions		(1,246,539	)								(1,246,539	)
Changes in the asset ceiling during the period and others								(1,055,409	)		(1,055,409	)
Return on plan assets greater than discount rate (shortfall)					23,503,296						23,503,296
Recognized in other comprehensive income	Ps.	(22,461,527	)	Ps.	23,503,296		Ps.	(1,055,409	)	Ps.	(13,640	)
Contributions made by plan participants		173,722			(173,722	)					—
Contributions to the pension plan made by the Company					(1,565,792	)					(1,565,792	)
Benefits paid		(19,546,541	)		19,546,541						—
Payments to employees		(10,651,938	)								(10,651,938	)
Effect of translation		(3,535,477	)		3,353,498			(963,981	)		(1,145,960	)
Others	Ps.	(33,560,234	)	Ps.	21,160,525		Ps.	(963,981	)	Ps.	(13,363,690	)
Balance at the end of the year		306,702,447			(203,671,122	)		5,087,543			108,118,868
Less short-term portion		(212,141	)								(212,141	)
Non-current obligation	Ps.	306,490,306		Ps.	(203,671,122	)	Ps.	5,087,543		Ps.	107,906,727

F-66

	At December 31, 2019
	DBO			Plan Assets			Effect of asset celling			Net employee benefit liability
Balance at the beginning of the year	Ps.	306,702,447		Ps.	(203,671,122	)		5,087,543		Ps.	108,118,868
Current service cost		2,591,975									2,591,975
Interest cost on projected benefit obligation		31,001,348									31,001,348
Expected return on plan assets					(20,070,037	)					(20,070,037	)
Changes in the asset ceiling during the period and others								445,743			445,743
Past service costs and others					144,481						144,481
Actuarial gain for changes in experience		(22,599	)								(22,599	)
Actuarial gain from changes in demographic assumptions		(129	)								(129	)
Actuarial loss from changes in financial assumptions		36,163									36,163
Net period cost	Ps.	33,606,758		Ps.	(19,925,556	)	Ps.	445,743		Ps.	14,126,945
Actuarial loss for changes in experience		31,606,323									31,606,323
Actuarial gain from changes in demographic assumptions		(339,657	)								(339,657	)
Actuarial loss from changes in financial assumptions		7,207,072									7,207,072
Changes in the asset ceiling during the period and others								(712,064	)		(712,064	)
Return on plan assets greater than discount rate (shortfall)					423,514						423,514
Recognized in other comprehensive income	Ps.	38,473,738		Ps.	423,514		Ps.	(712,064	)	Ps.	38,185,188
Contributions made by plan participants		155,188			(155,188	)					—
Contributions to the pension plan made by the Company					(1,337,610	)					(1,337,610	)
Benefits paid		(15,836,928	)		15,836,928						—
Payments to employees		(16,996,920	)								(16,996,920	)
Effect of translation		(3,534,509	)		2,528,213			(393,201	)		(1,399,497	)
Others	Ps.	(36,213,169	)	Ps.	16,872,343		Ps.	(393,201	)	Ps.	(19,734,027	)
Balance at the end of the year		342,569,774			(206,300,821	)		4,428,021			140,696,974
Less short-term portion		(213,065	)								(213,065	)
Non-current obligation	Ps.	342,356,709		Ps.	(206,300,821	)	Ps.	4,428,021		Ps.	140,483,909

F-67

	At December 31, 2020
	DBO			Plan Assets			Effect of asset celling			Net employee benefit liability
Balance at the beginning of the year	Ps.	342,569,774		Ps.	(206,300,821	)	Ps.	4,428,021		Ps.	140,696,974
Current service cost		2,810,584									2,810,584
Interest cost on projected benefit obligation		30,482,173									30,482,173
Expected return on plan assets					(17,655,119	)					(17, 655,119	)
Changes in the asset ceiling during the period and others								278,639			278,639
Past service costs and other					148,253						148,253
Actuarial gain for changes in experience		(8,945	)								(8,945	)
Actuarial gain from changes in demographic assumptions		(270	)								(270	)
Actuarial loss from changes in financial assumptions		20,219									20,219
Net period cost	Ps.	33,303,761		Ps.	(17,506,866	)	Ps.	278,639		Ps.	16,075,534
Actuarial gain for changes in experience		(9,677	)								(9,677	)
Actuarial gain from changes in demographic assumptions		(103,987	)								(103,987	)
Actuarial loss from changes in financial assumptions		3,475,345									3,475,345
Changes in the asset ceiling during the period and others								(542,430	)		(542,430	)
Return on plan assets greater than discount rate (shortfall)					12,320,777						12,320,777
Actuarial loss from changes in demographic assumptions		(924,084	)								(924,084	)
Recognized in other comprehensive income	Ps.	2,437,597		Ps.	12320,777		Ps.	(542,430	)	Ps.	14,215,944
Contributions made by plan participants		137,947			(137,947	)					—
Contributions to the pension plan made by the Company					(1,882,654	)					(1,882,654	)
Benefits paid		(19,740,727	)		19,740,727						—
Payments to employees		(14,426,720	)								(14,426,720	)
Effect of translation		(1,278,392	)		2,217,201			(770,590	)		168,219
Others	Ps.	(35,307,892	)	Ps.	19,937,327		Ps.	(770,590	)	Ps.	(16,141,155	)
Balance at the end of the year		343,003,240			(191,549,583	)		3,393,640			154,847,297
Less short-term portion		(268,940	)								(268,940	)
Non-current obligation	Ps.	342,734,300		Ps.	(191,549,583	)	Ps.	3,393,640		Ps.	154,578,357

In the case of other subsidiaries in Mexico, the net period cost of other employee benefits for the years ended December 31, 2018, 2019 and 2020 was Ps.(16,347) , Ps.49,050 and Ps.174,994, respectively. The balance of other employee benefits at December 31, 2019 and 2020 was Ps.845,830 and Ps.916,534, respectively.

In the case of Brazil, the net period cost of other benefits for the years ended December 31, 2018, 2019 and 2020 was Ps.98,658, Ps.99,498 and Ps.268,562, respectively. The balance of employee benefits at December 31, 2019 and 2020 was Ps.2,402,285 and Ps.2,111,801, respectively.

In the case of Ecuador, the net period cost of other benefits for the years ended December 31, 2018, 2019 and 2020 was Ps.58,354, Ps.34,425 and Ps.67,402, respectively. The balance of employee benefits at December 31, 2019 and 2020 was Ps.409,750 and Ps.488,161, respectively.

F-68

In the case of Central America, the net period cost of other benefits for the years ended December 31, 2020 was Ps.19,462. The balance of employee benefits at December 31, 2020 was Ps.250,819.

Plan assets are invested in:

At December 31

	2019									2020
	Puerto Rico			Brazil			Mexico			Puerto Rico			Brazil			Mexico
Equity instruments		41	%		—			64	%		43	%		—			68	%
Debt instruments		58	%		94	%		36	%		22	%		95	%		32	%
Others		1	%		6	%		—			35	%		5	%		—
		100	%		100	%		100	%		100	%		100	%		100	%

Included in the Telmex’s net pension plan liability are plan assets of Ps.164,910,346 and Ps.150,090,481 as of December 31, 2019 and 2020, respectively, of which 31.9% and 39.6% during 2019 and 2020, respectively, were invested in equity and debt instruments of both América Movil and also of related parties, primarily entities that are under common control of the Company’s principal shareholder. The Telmex pension plan recorded a re-measurement of its defined pension plan of Ps.34,782,129 and Ps.11,753,416 during 2019 and 2020, respectively, attributable to a change in actuarial assumptions, and also a decline in the fair value of plan investments from December 31, 2019 to December 31, 2020. The decrease in fair value of the aforementioned related party pension plan investments approximated Ps.4,156,919 and Ps.14,820,220 during the years ended December 31, 2019 and 2020, respectively.

The assumptions used in determining the net period cost were as follows:

	2018				2019				2020
	Puerto Rico	Brazil	Mexico	Europe	Puerto Rico	Brazil	Mexico	Europe	Puerto Rico	Brazil	Mexico	Europe
				1.25%,				0.75%,		6.48% &		0.25%,
				1.75% &				1.00% &				0.50% &
Discount rate and long- term rate return	4.45%	9.10%	11.81%	2.00%	3.23%	7.03%	10.50%	1.25%	2.34%	7.39%	10.04%	0.75%
				3.0.%,				3.00%,				3.00%,
				3.5% &				3.5% &				3.5% &
Rate of future salary increases	2.75%	4.00%	3.55%	4.40%	2.75%	3.80%	3.20%	4.40%	2.75%	3.25%	2.84%	4.10%
Percentage of increase in health care costs for the coming year	3.87%	10.50%			3.18%	10.30%			2.28%	9.96%
Year to which this level will be maintained	N/A	2029			N/A	2029			N/A	2031
Rate of increase of pensions				1.60%				1.60%				1.60%
Employee turnover rate*				0.0%-1.51%				0.00%-1.38%				0.00%-1.31%

* Depending on years of service

F-69

Biometric

Puerto Rico:
Mortality:	RP 2014, MSS 2020 Tables.
Disability:	1985 Pension Disability Table
Brazil:
Mortality:	2000 Basic AT Table for gender
Disability for assets:	UP 84 modified table for gender
Disability retirement:	80 CSO Code Table
Rotation:	Probability of leaving the Company other than death, Disability and retirement is zero

Europe

Life expectancy in Austria is base on “AVÖ 2018-P – Rechnungsgrundlagen für die Pensionsversicherung – Pagler & Pagler”.

Telmex
Mortality:	Mexican 2000 (CNSF) adjusted
Disability:	Mexican Social Security adjusted by Telmex experience
Turnover:	Telmex experience
Retirement:	Telmex experience

For the year ended December 31, 2020, the Company conducted a sensitivity analysis on the most significant variables that affect the DBO, simulating independently, reasonable changes to roughly 100 basis points in each of these variables. The increase (decrease) would have resulted in the DBO pension and other benefits at December 31, 2020 are as follows:

	-100 points			+100 points
Discount rate	Ps.	29,012,552		Ps.	(25,541,956	)
Health care cost trend rat	Ps.	(665,934	)	Ps.	781,238

Telmex Plans

Part of the Telmex´s employees are covered under defined benefit pension plans and seniority premiums. Pension benefits and seniority premiums are determined on the basis in their final year of employment, their seniority, and their age at the time of retirement. Telmex has set up an irrevocable trust fund to finance these employee benefits and has adopted the policy of making contributions to such fund when it is considered necessary.

Europe

Defined benefit pension plans

A1 Telekom Austria Group provides defined benefits for certain former employees in Austria. All eligible employees are retired and were employed prior to January 1, 1975. This unfunded plan provides benefits based on a percentage of salary and years employed, not exceeding 80% of the salary before retirement, and taking into consideration the pension provided by the social security system. A1 Telekom Austria Group is exposed primarily to the risk of development of life expectancy and inflation because the benefits from pension plans are lifetime benefits. Furthermore, at December 31, 2020 and 2019, approximately 10% and 10%, respectively, of the obligation for pensions relate to the employees of the company Akenes in Lausanne, which was acquired in 2017.

F-70

Service awards

Civil servants and certain employees (in the following “employees”) are eligible to receive service awards. In accordance with the legal regulations, eligible employees receive a cash bonus of two months’ salary after 25 years of service and four months’ salary after 40 years of service. Employees with at least 35 years of service when retiring (at the age of 65) or who are retiring based on specific legal regulations are also eligible to receive the service award of four monthly salaries. The obligation is accrued over the period of service, taking into account the employee turnover rate of employees who leave service early. The main risk that A1 Telekom Austria Group is exposed to is the risk of development of salary increases and changes of interest rates.

Severance

Defined contribution plans

Employees who started work for A1 Telekom Austria Group in Austria on or after January 1, 2003 are covered by a defined contribution plan. A1 Telekom Austria Group paid Ps.54,945 and Ps.66,294 (1.53% of the salary or wage) into this defined contribution plan (BAWAG Allianz Mitarbeitervorsorgekasse AG) in 2019 and 2020, respectively.

Defined benefit plans

Severance benefit obligations for employees hired before January 1, 2003, excluding civil servants, are covered by defined benefit plans. Upon termination by A1 Telekom Austria Group or retirement, eligible employees receive severance payments. Depending on their time in service, their severance is equal to a multiple of their monthly basic compensation plus variable elements such as overtime or bonuses, with a maximum of twelve monthly salaries. In case of death, the heirs of eligible employees receive 50% of the severance benefits. The primary risks to A1 Telekom Austria Group are salary increases and changes of interest rates.

b) Defined Contribution Plans

Brazil

Claro makes contributions to the DCP through Embratel Social Security Fund – Telos. Contributions are computed based on the salaries of the employees, who decide on the percentage of their contributions to the plan (participants enrolled before October 31st, 2014 is from 1% to 8% and, for those subscribed after that date, the contribution is from 1% to 7% of their salaries). Claro contributes the same percentage as the employee, capped at 8% of the participant’s balance for the employees that are eligible to participate in this plan.

At December 31, 2019 and 2020, the balance of the DCP liability was Ps.76,509 and Ps, 980,014 respectively. For the years ended December 31, 2018, 2019 and 2020 the cost of labor were Ps.2,377, Ps.3,365 and Ps.2,930, respectively.

Europe

In Austria, pension benefits are generally provided by the social security system for employees, and by the government for civil servants. The contributions of 12.55% that A1 Telekom Austria Group made in 2019 and 2020 to the social security system and the government in Austria, amount to Ps.1,334,713 and Ps.1,474,721, respectively. Contributions of the foreign subsidiaries into the respective systems range between 7% and 29% and amount to Ps.530,888 and Ps.601,476 in 2019 and 2020, respectively.

Additionally, A1 Telekom Austria Group offers a defined contribution plan for employees of some of its Austrian subsidiaries. A1 Telekom Austria Group’s contributions to this plan are based on a percentage of the compensation not exceeding 5%. The annual expenses for this plan amounted to Ps.281,693 and Ps.295,567 in 2019 and 2020, respectively.

F-71

As of December 31, 2019 and 2020 the liability related to this defined contribution plan amounted to Ps.111,724 and Ps.134,034, respectively.

Other countries

For the rest of the countries where the Company operates and that do not have defined benefit plans or defined contribution plans, the Company makes contributions to the respective governmental social security agencies which are recognized in results of operations as they are incurred.

c) Long-term direct employee benefits

Balance at December 31, 2018

Effect of translation

Increase of the year

Applications

Balance at December 31, 2019

Payments

Reversals

Long-term direct employee benefits

Ps.

8,111,778

Ps.

(518,180

)

Ps.2,528,224

Ps.(1,946,055

)

Ps. —

Ps.8,175,767

Balance at December 31, 2019

Effect of translation

Increase of the year

Applications

Balance at December 31, 2020

Payments

Reversals

Long-term direct employee benefits

Ps.

8,175,767

Ps.

1,256,880

Ps.1,729,392

Ps.(2,411,436

)

Ps. —

Ps.8,750,603

In 2008, a comprehensive restructuring program was initiated in the segment Austria. The provision for restructuring includes future compensation of employees who will no longer provide services for A1 Telekom Austria Group but who cannot be laid off due to their status as civil servants. These employment contracts are onerous contracts under IAS 37, as the unavoidable cost related to the contractual obligation exceeds the future economic benefit. The restructuring program also includes social plans for employees whose employment will be terminated in a socially responsible way. In 2009 and every year from 2011 to 2019, new social plans were initiated that provide for early retirement, special severance packages and golden handshake options. Due to their nature as termination benefits, these social plans are accounted for according to IAS 19.

19. Financial Assets and Liabilities

Set out below is the categorization of the financial instruments, excluding cash and cash equivalents, held by the Company as of December 31, 2019 and 2020:

	December 31, 2019
	Loans and Receivables		Fair value through profit or loss		Fair value through OCI
Financial Assets:
Equity investments at fair value through OCI and other short term investments	Ps.	10,145,615	Ps.	—	Ps.	37,572,410
Accounts receivable from subscribers, distributors, contractual assets and other		196,217,010		—		—
Related parties		1,273,140		—		—
Derivative financial instruments		—		6,825,760		—
Total	Ps.	207,635,765	Ps.	6,825,760	Ps.	37,572,410
Financial Liabilities:
Debt	Ps.	624,254,477	Ps.	—	Ps.	—
Liability related to right-of-use of assets		120,596,733		—		—
Accounts payable		216,112,824		—		—
Related parties		3,460,419		—		—
Derivative financial instruments		—		9,596,751		—
Total	Ps.	964,424,453	Ps.	9,596,751	Ps.	—

F-72

	December 31, 2020
	Loans and Receivables		Fair value through profit or loss		Fair value through OCI
Financial Assets:
Equity investments at fair value through OCI and other short term investments	Ps.	4,603,284	Ps.	—	Ps.	50,033,111
Accounts receivable from subscribers, distributors, contractual assets and other		171,213,415		—		—
Related parties		1,391,300		—		—
Derivative financial instruments		—		20,928,335		—
Total	Ps.	177,207,999	Ps.	20,928,335	Ps.	50,033,111
Financial Liabilities:
Debt	Ps.	628,382,956	Ps.	—	Ps.	—
Liability related to right-of-use of assets		109,327,241		—		—
Accounts payable		186,995,472		—		—
Related parties		3,999,916		—		—
Derivative financial instruments		—		14,230,249		—
Total	Ps.	928,705,585	Ps.	14,230,249	Ps.	—

Fair value hierarchy

The Company’s valuation techniques used to determine and disclose the fair value of its financial instruments are based on the following hierarchy:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Variables other than quoted prices in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices); and

Level 3: Variables used for the asset or liability that are not based on any observable market data (non-observable variables).

F-73

The fair value for the financial assets (excluding cash and cash equivalents) and financial liabilities shown in the consolidated statements of financial position at December 31, 2019 and 2020 is as follows:

	Measurement of fair value at December 31, 2019
	Level 1		Level 2		Level 3		Total
Assets:
Equity investments at fair value through OCI and other short-term investments	Ps.	37,572,410	Ps.	10,145,615	Ps.	—	Ps.	47,718,025
Derivative financial instruments		—		6,825,760		—		6,825,760
Pension plan assets		185,981,861		20,294,557		24,403		206,300,821
Total	Ps.	223,554,271	Ps.	37,265,932	Ps.	24,403	Ps.	260,844,606
Liabilities:
Debt	Ps.	582,003,256	Ps.	101,667,421	Ps.	—	Ps.	683,670,677
Liability related to right-of-use of assets		120,596,733		—		—		120,596,733
Derivative financial instruments		—		9,596,751		—		9,596,751
Total	Ps.	702,599,989	Ps.	111,264,172	Ps.	—	Ps.	813,864,161
	Measurement of fair value at December 31, 2020
	Level 1		Level 2		Level 3		Total
Assets:
Equity investments at fair value through OCI and other short-term investments	Ps.	50,033,111	Ps.	4,603,284	Ps.	—	Ps.	54,636,395
Derivative financial instruments		—		20,928,335		—		20,928,335
Revalued of assets		—		—		107,152,628		107,152,628
Pension plan assets		168,939,091		22,589,392		21,100		191,549,583
Total	Ps.	218,972,202	Ps.	48,121,011	Ps.	107,173,728	Ps.	374,266,941
Liabilities:
Debt	Ps.	578,712,562	Ps.	135,645,912	Ps.	—	Ps.	714,358,474
Liability related to right-of-use of assets		109,327,241		—		—		109,327,241
Derivative financial instruments		—		14,230,249		—		14,230,249
Total	Ps.	688,039,803	Ps.	149,876,161	Ps.	—	Ps.	837,915,964

Fair value of derivative financial instruments is valued using valuation techniques with market observable inputs. To determine its Level 2 fair value, the Company applies different valuation techniques including forward pricing and swaps models, using present value calculations. The models incorporate various inputs including credit quality of counterparties, foreign exchange spot and forward rates and interest rate curves. Fair value of debt Level 2 has been determined using a model based on present value calculation incorporating credit quality of AMX. The Company’s investment in equity investments at fair value, specifically the investment in KPN, is valued using the quoted prices (unadjusted) in active markets for identical assets. The net realized (loss) gain related to derivative financial instruments for the years ended December 31, 2019 and 2020 was Ps.(1,774,932) and Ps.2,606,938 respectively.

The fair value of the asset revaluation was calculated using valuation techniques, using observable market data and internal information on transactions carried out with independent third parties. To determine fair value we use level 2 and 3 information, the Company used inputs such as average rents, contract term and discount rates for discounted flow modeling techniques; in the case of discount rates, we use level 2 data where the information is public and is found in recognized databases, such as country risks, inflation, etc. In the case of average rents and contract terms, we use level 3 data, where the information is mainly internal based on lease contracts entered into with independent third parties.

F-74

During the end of the period ended December 31, 2019 and 2020, there were no transfers between the Level 1 and Level 2 fair value measurement hierarchies.

Changes in liabilities arising from financing activities

	At December 31, 2018		At January 1, 2019		Cash flow			Foreign currency exchange and other			At December 31, 2019
Debt		638,922,453		—		8,273,440			(22,941,416	)		624,254,477
Liability related to right-of-use of assets		—		119,387,660		(26,765,075	)		27,974,148			120,596,733
Total liabilities from financing activities	Ps.	638,922,453	Ps.	119,387,660	Ps.	(18,491,635	)	Ps.	5,032,732		Ps.	744,851,210

	At December 31, 2019		Cash flow			Foreign currency exchange and other		At December 31, 2020
Debt		624,254,477		(53,091,801	)		57,220,280		628,382,956
Liability related to right-of-use of assets		120,596,733		(29,623,565	)		18,354,073		109,327,241
Total liabilities from financing activities		Ps.744,851,210		Ps.(82,715,366	)		Ps.75,574,353		Ps.737,710,197

20. Shareholders’ Equity

a) Pursuant to the Company’s bylaws, the capital stock of the Company consists of a minimum fixed portion of Ps.270,049, (nominal amount), represented by a total of 71,063,212,170 shares (including treasury shares available for placement in accordance with the provisions of the Ley del Mercado de Valores), of which (i) 20,578,173,274 are “AA” shares (full voting rights); (ii) 519,948,436 are “A” shares (full voting rights); and (iii) 49,965,090,460 are “L” shares (limited voting rights).

b) As of December 31, 2020 and 2019, the Company’s capital stock was represented by 66,862,560,649 shares (20,578,173,274 “AA” shares, 519,926,536 “A” shares and 45,764,460,839 “L” shares), and 66,004,214,830 (20,601,632,660 “AA” shares, 530,563,378 “A” shares and 44,872,018,792 “L” shares), respectively.

c) As of December 31, 2020 and 2019, the Company’s treasury held for placement in accordance with the provisions of the Ley del Mercado de Valores and the Disposiciones de carácter general aplicables a las emisoras de valores y a otros participantes en el Mercado de valores issued by the Comisión Nacional Bancaria y de Valores, a total amount of 4,200,651,521 shares (4,200,629,621 “L” shares and 21,900 “A” shares); and 5,058,997,340 shares (5,058,975,440 “L” shares and 21,900 “A” shares), respectively, all acquired pursuant to the Company’s share repurchase program.

d) The holders of “AA” and “A” shares are entitled to full voting rights. The holders of “L” shares may only vote in limited circumstances, and they are only entitled to appoint two members of the Board of Directors and their respective alternates. The matters in which “L” shares holders are entitled to vote are the following: extension of the Company´s corporate life, dissolution of the Company, change of Company’s corporate purpose, change of nationality of the Company, transformation of the Company, a merger with another company, any transaction representing 20% or more of the Company’s consolidated assets, as well as the cancellation of the inscription of the shares issued by the Company at the Registro Nacional de Valores and any other foreign stock exchanges where they may be registered, except for quotation systems or other markets not organized as stock exchanges. Within their respective series, all shares confer the same rights to their holders.

The Company’s bylaws contain restrictions and limitations related to the subscription and acquisition of “AA” shares by non-Mexican investors.

F-75

e) Pursuant to the Company’s bylaws, “AA” shares must at all times represent no less than 20% and no more than 51% of the Company’s capital stock, and they shall also represent at all times, no less than 51% of the common shares (entitled to full voting rights, represented by “AA” and “A” shares) representing said capital stock.

“A” shares, which may be freely subscribed, must not represent more than 19.6% of capital stock and must not exceed 49% of the common shares representing such capital. Common shares (entitled to full voting rights, represented by “AA” and “A” shares), must represent no more than 51% of the Company’s capital stock.

Lastly, “L” shares which have limited voting rights and may be freely subscribed may not exceed, along with “A” shares, 80% of the Company’s capital stock. For purposes of determining these restrictions, the percentages mentioned above refer only to the number of the Company’s shares outstanding.

Dividends     

On April 24, 2020, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps.$0.38 (thirty-eight peso cents) per share to each of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installments of Ps.$0.19 (nineteen peso cents) each, on July 20 and November 09, 2020 respectively.

On April 9, 2019, the Company’s shareholders approved, among other resolutions, the payment of a dividend of Ps.$0.35 (thirty-five peso cents) per share to each of the shares series of its capital stock “AA”, “A” and “L”. It was approved, that such dividend would be paid in two installments of Ps.$0.18 (eighteen peso cents) and Ps.$0.17 (seventeen peso cents), on July 15 and November 11, 2019 respectively.

Legal Reserve

According to the Ley General de Sociedades Mercantiles, companies must allocate from the net profit of each year, at least 5% to increase the legal reserve until it reaches 20% of its capital stock. This reserve may not be distributed to shareholders during the existence of the Company, except as a stock dividend. As of December 31, 2020 and 2019, the legal reserve amounted Ps.358,440.

Restrictions on Certain Transactions

Pursuant to the Company’s bylaws any transfer of more than 10% of the full voting shares (“A” shares and “AA” shares), effected in one or more transactions by any person or group of persons acting in concert, requires prior approval by our Board of Directors. If the Board of Directors denies such approval, however, the Company bylaws require it to designate an alternate transferee, who must pay market price for the shares as quoted on the Bolsa Mexicana de Valores, S.A.B. de C.V.

Payment of Dividends

Dividends, either in cash or in kind, paid with respect to the “A” Shares, “L” Shares, “A” Share ADSs or “L” Share ADSs will generally be subject to a 10% Mexican withholding tax (provided that no Mexican withholding tax will apply to distributions of net taxable profits generated before 2015). Nonresident holders could be subject to a lower tax rate, to the extent that they are eligible for benefits under an income tax treaty to which Mexico is a party.

F-76

Earnings per Share

The following table shows the computation of the basic and diluted earnings per share:

	For the years ended December 31,
	2018		2019		2020
Net profit for the period attributable to equity holders of the parent	Ps.	52,566,197	Ps.	67,730,891	Ps.	46,852,605
Weighted average shares (in millions)		66,055		66,016		66,265
Earnings per share attributable to equity holders of the parent	Ps.	0.79	Ps.	1.03	Ps.	0.71

21. Components of other comprehensive loss

The movement on the components of the other comprehensive (loss) income for the years ended December 31, 2018, 2019 and 2020 is as follows:

	For the years ended December 31,
	2018			2019			2020
Controlling interest:
Unrealized (loss) gain on equity investments at fair value, net of deferred taxes		(3,765,688	)		883,408			(1,952,414	)
Translation effect of foreign entities		(61,223,458	)		(34,010,066	)		(13,558,774	)
Remeasurement of defined benefit plan, net of deferred taxes		652,722			(29,153,554	)		(10,026,454	)
Assets revaluation surplus net of deferred taxes		—			—			64,835,155
Non-controlling interest of the items above		(2,986,018	)		(1,908,304	)		14,165,249
Other comprehensive (loss) income		Ps.(67,322,442	)		Ps.(64,188,516	)		Ps.53,462,762

22. Valuation of derivatives, interest cost from labor obligations and other financial items, net

For the years ended December 31, 2018, 2019 and 2020, valuation of derivatives and other financial items are as follows:

	For the years ended December 31,
	2018			2019			2020
Controlling interest:
(Loss) gain in valuation of derivatives, net	Ps.	(4,686,407	)	Ps.	4,432,023		Ps.	12,378,193
Capitalized interest expense (Note 10 b)		2,020,288			2,233,358			1,771,613
Commissions		(1,901,473	)		(2,820,477	)		(1,135,082	)
Interest cost of labor obligations (Note 18)		(9,968,526	)		(11,377,054	)		(13,105,693	)
Interest expense on taxes		(555,921	)		(516,522	)		(59,032	)
Dividend received (Note 4)		2,605,333			1,773,336			2,122,826
Gain on net monetary positions		4,429,145			4,267,194			3,262,512
Other financial cost		(2,118,755	)		(5,067,200	)		(3,944,229	)
Total	Ps.	(10,176,316	)	Ps.	(7,075,342	)	Ps.	1,291,108

23. Segments

América Móvil operates in different countries. As mentioned in Note 1, the Company has operations in Mexico, Guatemala, Nicaragua, Ecuador, El Salvador, Costa Rica, Brazil, Argentina, Colombia, United States, Honduras, Chile, Peru, Paraguay, Uruguay, Dominican Republic, Puerto Rico, Panama, Austria, Croatia, Bulgaria, Belarus, Macedonian, Serbia and Slovenia. The accounting policies for the segments are the same as those described in Note 2.

F-77

The Chief Executive Officer, who is the Chief Operating Decision Maker (“CODM”), analyzes the financial and operating information by operating segment. All operating segments that (i) represent more than 10% of consolidated revenues, (ii) more than the absolute amount of its reported 10% of profits before income tax or (iii) more than 10% of consolidated assets, are presented separately.

The Company presents the following reportable segments for the purposes of its consolidated financial statements: Mexico (includes Telcel and Corporate operations and assets), Telmex (Mexico), Brazil, Southern Cone (includes Argentina, Chile, Paraguay and Uruguay), Central America (includes Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama), U.S.A. (excludes Puerto Rico), Caribbean (includes Dominican Republic and Puerto Rico), and Europe (includes Austria, Bulgaria, Croatia, Belarus, Slovenia, Macedonia and Serbia).

The segment Southern Cone comprises mobile communication services in Argentina as well as Chile, Paraguay and Uruguay. Beginning in 2018, hyperinflation accounting in accordance with IAS 29 was initially applied to Argentina, which results in the restatement of non-monetary assets, liabilities and all items of the statement of comprehensive income for the change in a general price index and the translation of these items applying the period-end exchange rate.

The Company considers that the quantitative and qualitative aspects of any aggregated operating segments (that is, Central America and Caribbean reportable segments) are similar in nature for all periods presented. In evaluating the appropriateness of aggregating operating segments, the key indicators considered included but were not limited to: (i) the similarity of key financial statements measures and trends, (ii) all entities provide telecommunications services, (iii) similarities of customer base and services, (iv) the methods to distribute services are the same, based on telephone plant in both cases, wireless and fixed lines, (v) similarities of governments and regulatory entities that oversee the activities and services of telecom companies, (vi) inflation trends, and (vii) currency trends.

F-78

	Mexico			Telmex			Brazil			Southern Cone			Colombia		Andean		Central America		U.S.A.		Caribbean		Europe			Eliminations			Consolidated total
As of and for the year ended December 31, 2018 (in Ps.):
External revenues		207,610,244			86,339,289			188,712,666			89,149,978			75,460,428		55,633,192		44,883,585		153,266,315		36,435,541		100,716,443			—			1,038,207,681
Intersegment revenues		16,946,543			9,741,908			4,593,760			13,200,358			344,517		154,082		149,445		—		204,294		—			(45,334,907	)		—
Total revenues		224,556,787			96,081,197			193,306,426			102,350,336			75,804,945		55,787,274		45,033,030		153,266,315		36,639,835		100,716,443			(45,334,907	)		1,038,207,681
Depreciation and amortization		17,619,342			18,358,248			42,857,751			13,526,361			13,464,867		8,516,960		8,940,655		1,545,395		5,036,831		26,838,972			(992,802	)		155,712,580
Operating income (loss)		57,450,599			8,085,764			23,494,903			16,975,797			14,388,552		5,003,915		4,867,763		2,665,270		5,811,846		4,731,562			(3,918,800	)		139,557,171
Interest income		26,578,280			420,380			11,303,888			2,251,474			1,013,839		1,666,879		1,566,086		559,548		1,458,874		122,133			(36,295,212	)		10,646,169
Interest expense		32,526,258			1,153,913			20,377,191			4,338,941			2,913,881		1,719,663		509,081		—		561,867		1,973,431			(34,302,793	)		31,771,433
Income tax		28,842,505			643,377			4,026,444			1,390,039			2,251,877		2,498,666		2,533,600		810,898		2,774,204		707,093			(1,624	)		46,477,079
Equity interest in net income (loss) of associated companies		(5,962	)		44,965			(152	)		(20,871	)		—		—		—		—		—		(17,713	)		—			267
Net profit (loss) attributable to equity holders of the parent		23,185,029			(2,201,572	)		3,530,653			6,065,703			9,165,801		1,730,933		2,821,733		2,820,505		3,644,697		3,809,694			(2,006,979	)		52,566,197
Assets by segment		970,564,314			174,461,398			390,791,480			127,946,573			111,975,598		96,347,779		81,640,157		38,814,907		102,531,547		186,135,358			(851,985,719	)		1,429,223,392
Plant, property and equipment, net		56,056,634			103,737,293			173,197,708			62,988,635			51,422,548		35,800,477		37,146,601		1,356,237		38,011,242		80,421,642			(138,297	)		640,000,720
Goodwill		27,104,632			215,381			21,388,124			2,796,759			12,770,380		5,242,365		5,466,871		3,328,533		14,186,723		53,066,729			—			145,566,497
Trademarks, net		227,774			243,556			124,910			—			—		—		—		507,033		249,984		3,313,948			—			4,667,205
Licenses and rights, net		10,573,147			—			25,873,910			12,555,496			3,400,235		9,651,582		3,605,416		—		10,294,336		27,344,273			—			103,298,395
Investment in associated companies		5,621,661			563,667			543			20,697			412		—		24,262		—		—		748,674			(3,847,209	)		3,132,707
Liabilities by segments		748,965,728			136,993,838			298,308,084			94,550,901			56,211,438		50,064,761		28,592,953		35,552,678		58,716,154		117,214,746			(441,820,311	)		1,183,350,970

F-79

	Mexico			Telmex			Brazil			Southern Cone			Colombia		Andean			Central America			U.S.A.		Caribbean		Europe			Eliminations			Consolidated total
As of and for the year ended December 31, 2019 (in Ps.):
External revenues		226,164,232			84,173,980			177,596,077			54,230,682			74,274,684		55,440,675			46,602,036			155,864,392		34,580,822		98,420,289			—			1,007,347,869
Intersegment revenues		11,676,015			11,863,364			4,182,248			11,041,705			361,386		92,249			132,061			—		1,136,879		—			(40,485,907	)		—
Total revenues		237,840,247			96,037,344			181,778,325			65,272,387			74,636,070		55,532,924			46,734,097			155,864,392		35,717,701		98,420,289			(40,485,907	)		1,007,347,869
Depreciation and amortization		24,742,622			16,346,927			39,424,474			13,847,506			13,439,489		10,256,129			11,045,817			1,396,422		6,322,648		24,975,146			(2,881,970	)		158,915,210
Operating income (loss)		67,694,409			9,731,852			28,846,565			4,007,614			15,324,977		8,023,002			5,712,068			2,968,236		5,741,368		8,687,862			(1,897,418	)		154,840,535
Interest income		23,713,455			1,839,973			3,155,681			896,256			1,306,571		1,283,788			532,046			324,932		1,478,560		115,359			(28,361,949	)		6,284,672
Interest expense		30,972,658			1,439,785			19,021,965			3,849,318			2,952,123		2,422,887			1,406,720			385		1,435,862		2,220,168			(27,810,532	)		37,911,339
Income tax		30,000,511			1,528,229			4,251,116			2,022,336			5,405,452		1,681,159			2,355,380			1,119,478		719,774		1,946,255			3,843			51,033,533
Equity interest in net income (loss) of associated companies		(3,732	)		46,789			(1,538	)		(23,424	)		—		—			(28,795	)		—		—		(6,909	)		—			(17,609	)
Net profit (loss) attributable to equity holders of the parent		42,598,946			(1,705,068	)		5,618,095			(6,984	)		9,571,046		(2,604,646	)		2,335,963			2,095,807		4,312,630		5,051,145			463,957			67,730,891
Assets by segment		915,233,048			201,283,526			382,561,753			132,722,497			115,851,227		94,021,632			77,355,732			30,775,893		100,694,650		191,744,924			(710,311,225	)		1,531,933,657
Plant, property and equipment, net		54,589,459			106,869,482			174,761,167			60,537,650			50,133,642		39,068,450			38,934,747			1,405,755		38,223,641		75,707,738			(888,361	)		639,343,370
Goodwill		27,396,393			215,381			25,379,805			5,241,305			12,124,685		4,895,331			7,289,748			3,220,105		14,186,723		52,950,325			—			152,899,801
Trademarks, net		46,476			212,324			37,207			—			—		—			—			369,950		227,156		2,595,596			—			3,488,709
Licenses and rights, net		11,087,882			452,504			29,324,718			12,103,980			5,530,422		8,064,487			4,390,547			—		7,942,670		25,951,335			—			104,848,545
Investment in associated companies		3,562,323			610,807			111,073			(7,806	)		391		—			25,603			—		—		—			(1,828,198	)		2,474,193
Liabilities by segments		718,354,229			175,774,964			297,877,328			103,330,525			55,576,253		55,463,339			37,993,180			31,557,816		54,276,868		124,319,541			(349,497,251	)		1,305,026,792

F-80

	Mexico			Telmex			Brazil			Southern Cone			Colombia		Andean		Central America		U.S.A.		Caribbean		Europe			Eliminations			Consolidated total
As of and for the year ended December 31, 2020 (in Ps.):
External revenues		214,578,601			77,920,910			163,865,421			55,484,744			77,282,658		53,846,358		48,073,436		177,179,369		37,182,842		111,472,191			—			1,016,886,530
Intersegment revenues		17,663,525			13,668,264			4,207,466			1,220,100			352,694		88,305		121,580		—		1,440,983		—			(38,762,917	)		—
Total revenues		232,242,126			91,589,174			168,072,887			56,704,844			77,635,352		53,934,663		48,195,016		177,179,369		38,623,825		111,472,191			(38,762,917	)		1,016,886,530
Depreciation and amortization		24,748,756			13,341,479			41,795,397			13,095,004			14,413,760		11,447,356		14,355,899		1,561,284		7,094,331		25,593,204			(3,202,787	)		164,243,683
Operating income (loss)		70,851,525			11,204,433			25,203,504			1,877,079			15,111,947		8,698,645		4,004,501		10,579,394		6,701,086		13,159,865			(2,037,068	)		165,354,911
Interest income		21,322,406			1,479,021			2,904,430			980,581			822,447		1,049,261		1,130,767		77,235		1,105,420		90,746			(25,900,278	)		5,062,036
Interest expense		30,936,195			1,306,867			17,976,227			3,334,966			2,586,708		2,223,478		1,559,917		255		1,658,619		2,546,255			(25,467,747	)		38,661,740
Income tax		4,905,863			577,178			(4,442,598	)		992,831			2,078,789		3,115,693		1,518,953		2,856,881		2,524,214		2,234,065			4,283			16,366,152
Equity interest in net income (loss) of associated companies		(3,820	)		23,955			(2,972	)		(15,422	)		—		—		—		—		—		(288,747	)		—			(287,006	)
Net profit (loss) attributable to equity holders of the parent		3,613,907			(1,085,038	)		4,963,424			1,456,062			16,579,303		4,649,047		1,919,558		7,797,723		3,294,111		7,777,426			(4,112,918	)		46,852,605
Assets by segment		947,396,510			203,081,314			386,982,711			118,266,380			132,210,369		101,717,708		88,690,683		35,083,285		109,914,293		239,583,759			(737,878,785	)		1,625,048,227
Plant, property and equipment, net		52,117,395			110,751,083			145,307,497			62,157,797			48,876,853		36,102,261		37,855,227		1,761,595		39,128,447		82,595,077			(876,229	)		615,777,003
Revalued of assets		—			—			36,076,207			7,494,408			12,893,284		9,500,708		7,059,247		—		2,572,504		31,556,270			—			107,152,628
Goodwill		26,949,185			215,381			16,048,092			5,436,675			12,253,743		4,866,363		6,345,659		3,362,899		14,186,723		53,388,139			—			143,052,859
Trademarks, net		126,823			181,094			—			—			—		—		—		269,325		219,087		2,981,089			—			3,777,418
Licenses and rights, net		12,017,318			100,623			26,171,345			12,099,873			12,363,039		6,870,531		5,427,857		—		8,616,880		27,963,250			—			111,630,716
Investment in associated companies		51,645			613,449		��	64,125			(20,970	)		395		—		25,413		—		—		—			1,095,703			1,829,760
Liabilities by segments		725,408,198			193,840,756			263,989,566			61,786,265			63,610,642		53,379,366		34,252,511		33,141,315		60,839,340		138,747,621			(319,064,971	)		1,309,930,609

F-81

24. Recently Issued Accounting Standards

New and amended standards and interpretations

The Company applied for the first-time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2020. The Company has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Amendments to IFRS 3, Definition of a Business

The amendment to IFRS 3 Business Combinations clarifies that to be considered a business, an integrated set of activities and assets must include, at a minimum, an input and a substantive process that, together, significantly contribute to the ability to create output. Furthermore, it clarifies that a business can exist without including all of the inputs and processes needed to create outputs. These amendments had no impact on the consolidated financial statements of the Company, but may impact future periods should the Company enter into any business combinations.

Amendments to IFRS 7, IFRS 9 and IAS 39 Interest Rate Benchmark Reform

The amendments to IFRS 9 and IAS 39 Financial Instruments: Recognition and Measurement provide a number of reliefs, which apply to all hedging relationships that are directly affected by interest rate benchmark reform. A hedging relationship is affected if the reform gives rise to uncertainty about the timing and/or amount of benchmark-based cash flows of the hedged item or the hedging instrument. These amendments have no impact on the consolidated financial statements of the Company as it does not have any interest rate hedge relationships.

Amendments to IAS 1 and IAS 8 Definition of Material

The amendments provide a new definition of material that states, “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments clarify that materiality will depend on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements. A misstatement of information is material if it could reasonably be expected to influence decisions made by the primary users. These amendments had no impact on the consolidated financial statements of, nor is there expected to be any future impact to the Company.

Conceptual Framework for Financial Reporting issued on 29 March 2018

The Conceptual Framework is not a standard, and none of the concepts contained therein override the concepts or requirements in any standard. The purpose of the Conceptual Framework is to assist the IASB in developing standards, to help preparers develop consistent accounting policies where there is no applicable standard in place and to assist all parties to understand and interpret the standards. This will affect those entities which developed their accounting policies based on the Conceptual Framework. The revised Conceptual Framework includes some new concepts, updated definitions and recognition criteria for assets and liabilities and clarifies some important concepts. These amendments had no impact on the consolidated financial statements of the Company.

25. Subsequent Events

a) In February 2021, The Board of Directors approved a plan to spin-off our towers from América Móvil in Latin América. This spin-off will maximize the value of the infrastructure by becoming an independent entity entirely focused on development, construction and co-location of towers for wireless services and this transaction is consider to shareholders as a new entity. The Company expect to complete the reorganization of assets in 2021.

F-82

b) In February, 2021, the Company announces that its wholly-owned Dutch subsidiary América Móvil B.V. (the “Issuer”) has completed the placement of approximately EUR 2.1 billion principal amount of senior unsecured bonds (the “Bonds”) exchangeable into ordinary shares of Koninklijke KPN N.V. (the “Exchangeable Bond Offering”). The Bonds will have a maturity of 3 years, they will not bear interest (zero-coupon) and will be issued at an issue price of 104.75% of their principal amount, resulting in an annual yield-to-maturity of (1.53)%. The aggregate proceeds from the Bonds will be approximately EUR 2.2 billion. The Bonds will be exchangeable into Koninklijke KPN N.V. (“KPN”) ordinary shares and the initial exchange price has been set at EUR 3.1185, a premium of 15 per cent. above the Reference Price of EUR 2.7117 (the volume weighted average price of the KPN ordinary shares on Euronext Amsterdam on 23 February 2021). The Exchangeable Bond Offering is expected to close on 2 March 2021.

F-83