REPORT BY THE BOARD OF DIRECTORS
Report by the Board of Directors of Grupo Carso, S.A.B. De C.V. on the principal accounting policies and criteria followed in the preparation of the Company’s Financial Statement and on the operations and activities in which it participated, in conformance with Article 28, fraction IV, subparagraphs d) and e) of the Stock
Market Law.
Principal accounting and information policies and criteria followed in the preparation of the Financial Statement.
The Board of Directors has examined and approved, with the prior favorable opinion of the Company Practices Committee, the accounting and information policies and criteria that were followed in the preparation of the Consolidated Financial Statement of Grupo Carso, S.A.B. de C.V. and subsidiaries up to December 31 of 2023, which refers to the following aspects, among others:
1. Activities
2. Significant events
3. Combination of businesses
4. Consolidated subsidiaries
5. Cash and cash equivalents
6. Accounts receivable
7. Net investment in leased assets
8. Taxes recoverable
9. Inventories
10. Right to use assets
11. Lease liabilities
12. Administration of financial risks
13. Financial instruments
14. Derivative financial Instruments
15. Fixed assets, machinery and equipment
16. Investment properties
17. Investments in shares of associated companies, joint enterprises and other investments
18. Other assets
19. Intangible assets
20. Short- and long-term debt
21. Other accounts payable and accumulated liabilities
22. Provisions
23. Benefits to employees upon retirement
24. Book Capital
25. Balances and transactions with related parties
26. Income
27. Costs and expenses breakdown
28. Other (income) expenses, Net
29. Tax on income
30. Commitments
31. Contingencies
32. Information by segments
33. Adoption of the International Standards on information New and revised financial information
34. Material accounting policies
35. Critical accounting judgments and sources. Uncertainty principle in the estimates
36. Transactions that did not appear in cash flows
38. Authorization for the issuance of the consolidated financial statement
The details and scope of the accounting policies and criteria and of the information indicated above are found in Note No. 34 of the said financial statement – Material accounting policies, the respective text of which shall be considered to be reproduced here to the letter, as if it actually was.
Matters established in the Stock Market Law
During the fiscal year of 2023 and up to this date, the Board of Directors of Grupo Carso, S.A.B. de C.V. held several meetings in which the information relative to the operations and results of the Company and its subsidiaries, as well as the Company’s consolidated and unconsolidated financial statements were submitted to the Directors. In the said meetings, the directors discussed various matters, including some of those established in the Stock Market Law and they approved, with the prior favorable opinion of the Committee of Company Practices and Auditing, the following matters:
The operations with associated parties, executed successively, carried out by some of the subsidiaries of Grupo Carso, S.A.B. de C.V., each of them representing more than one percent of the Company’s consolidated assets, as follows:
a) Transactions carried out for 8,041,353 thousands of pesos between Empresa de Servicios y Soporte Integral GC, S.A.P.I. de C.V. and (i) Carso Infraestructura y Construcción, S.A. de C.V. (“Cicsa”) and some of its subsidiaries: fiber optic downspouts (from post to well); installation of chambers (Ciudad Segura); installation of fiber optics (external); engineering works (design of the Telmex companies telephony and internet connectivity network); (ii) Grupo Condumex, S.A. de C.V. (“Grupo Condumex”) and some of its subsidiaries: Installation of fiber optics, high-zero wiring; network cables; aerial cable; telephone wiring; fiber optic cable and electronic cable, in additio to construction for the passing of the fiber optics cable; and (iii) other works.
b) Transactions carried out for 4,955,773 thousands of pesos between Red Nacional Última Milla, S.A.P.I. de C.V. and (i) Cicsa and some of its subsidiaries; downspouts, high zero, maintenance and
ducting; (ii) Grupo Condumex and some of its subsidiaries: sale of telephone wire; (iii) Elementia Materiales, S.A.P.I. de C.V.: work on disassembled cable for recovery of the copper; (iv) Carso Eficentrum, S.A. de C.V.: commission for mediation; and (v) other works.
c) Transactions carried out for 2,951,266 thousands of pesos between Aptiv Services US LLC and other companies; and Grupo Condumex and some of its subsidiaries: sale of harnesses, cable, and automotive engineering services.
d) Transactions carried out for 2,877,327 thousands of pesos between Autovía Mitla Tehuantepec, S.A. de C.V. and (i) Cicsa and some of its subsidiaries: Construction of civil works; and (ii) other works.
All the operations with related parties were reviewed by Galaz, Yamazaki, Ruiz Urquiza, S.C., and a summary of them can be found in Note 25 of the Grupo Carso, S.A.B. de C.V.
and subsidiaries financial statements up to December 31 of 2023.
The ratification of the accounting firm of Galaz, Yamazaki, Ruiz Urquiza, S.C. to perform the external auditing services of the consolidated financial statements of Grupo Carso, S.A.B. de C.V. and its subsidiaries up to December 31 of 2023, as well as its fees.
The submission of the consolidated financial statements of Grupo Carso, S.A.B. de C.V. and its subsidiaries to the annual General Ordinary Shareholders’ Assembly for their consideration.
Mexico City, March25, 2024
Chairman of the Board of Advisors
Lic. Carlos Slim Domit
