Consolidated Statements of Cash Flows

For the years ended December 31, 2018, 2017 and 2016
(In thousands of Mexican pesos)


2018 2017 2016
Cash flows from operating activities:
Consolidated net income for the year $ 10,184,085 $ 11,448,482 $ 11,278,371
Adjustments not requiring (providing) cash:
Income tax recognized in earnings 1,377,603 3,331,065 5,030,852
Depreciation and amortization 2,217,695   2,261,993   2,093,893
(Gain) loss on sale of property, machinery and equipment and others assets (13,908)   3,164   (12,200)
Derecognition of property, machinery and equipment and intangible assets 2,761   –   –
Impairment of property, plant and equipment 10,375   30,228   (236)
Impairment of exploration expenses 372,850   –   44,327
Impairment of concession 84,659   –   –
Gain on investment property revaluation (221,908)   (115,955)   (135,845)
Gain on brand revaluation –   –   (8,672)
Equity in income of associated companies and join ventures (787,689)   (2,507,468)   (1,868,484)
Derivative financial instruments (9,414)   (9,414)   (37,909)
Interest income (4,378,247)   (3,933,023)   (3,560,383)
Interest expense 567,124   575,880   518,538
Gain on disposal of shares of associated –   (1,246,031)   (1,141,267)
Dividends received from associates (558,772)   –   –
Other items (132,756)   367,855   280,041
  8,714,458   10,206,776   12,481,026
Items related to operating activities:            
Increase) decrease in:            
Accounts receivable 951,434   (463,061)   (3,427,025)
Interest income 3,775,271   3,588,215   3,140,534
Other accounts receivable 155,359   (110,538)   (1,028,507)
Due from related parties (617,387)   (408,009)   (246,502)
Inventories (1,254,953)   (742,769)   (1,946,213)
Prepaid expenses (12,658)   24,113   (24,924)
Long-term accounts receivable –   10,143   17,336
Real estate inventories (25,512)   (38,715)   (82,342)
Other assets (374,902)   (235,324)   (278,992)
Increase (decrease) in:          
Trade accounts payable 1,366,532   564,913   941,653
Due to related parties (499,539)   (477,869)   483,388
Other accounts payable and accrued liabilities 174,844   282,526   506,937
Provisions (227,854)   219,086   923,128
Direct employee benefits (27,555)   (15,628)   122,748
Advances from customers 918,954   112,550   (148,539)
Other long-term liabilities 216,275   69,626   146,657
Employee retirement benefits (14,478)   (35,556)   107,624
Income taxes paid (3,776,476)   (2,976,019)   (4,636,975)
Derivative financial instruments (149,448)   75,837   (473,394)
Net cash flows provided by operating activities 9,292,365   9,650,297   6,577,618
Cash flows from investing activities:          
Purchase of investments in securities $ (2,279,153) $ (3,403,884) $ (3,630,842)
Sale of investments in securities 1,906,317 4,125,216 4,824,133
Purchase of property, machinery and equipment (4,340,943)   (5,831,354)   (7,949,201)
Proceeds from sale of property, machinery and equipment 77,515   203,340   41,711
Other assets (872,187)   (100,131)   (13,413)
Interest received 582,590   326,085   379,700
Dividends received 1,189,887   465,125   840,808
Derivative financial instruments (28,137)   (28,137)   3,462
Acquisitions of investment properties (62,890)   -   -
Sale of shares of subsidiaries -   624,641   –
Acquisition of shares in subsidiaries and associates (1,300,552)   (2,145,335)   (3,929,650)
Net cash flows used in investing activities (5,127,553)   (5,764,434)   (9,433,292)
Cash flows from financing activities:          
Borrowings 7,754,302   29,503,548   11,671,967
Payment of borrowings and long-term debt (4,794,250)   (30,997,986)   (7,362,424)
Interest paid (591,891)   (574,944)   (518,901)
Dividends paid (2,790,904)   (1,530,681)   (3,246,915)
Repurchase of own shares (19,780)   (408,746)   (682,139)
Repurchase of shares from subsidiary (300,967)   (424,063)   (235,891)
Derivative financial instruments 3,752   3,752   18,425
Decrease (acquisition) of non-controlling interest (105,276)   33,112   (4,364)
Net cash flows used in financing activities (845,014)   (4,396,008)   (360,242)
Effects of exchange rate changes on cash and cash equivalents 116,310   (16,407)   3,503
Net increase (decrease) in cash and cash equivalents 3,436,108   (526,552)   (3,212,413)
Cash and cash equivalents at beginning of the year 4,331,365   4,857,917   8,070,330
Cash and cash equivalents at end of the year $ 7,767,473 $ 4,331,365 $ 4,857,917

See accompanying notes to consolidated financial statements.