Grupo Carso, S.A.B. de C.V. and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2014 and 2013 (In thousands of Mexican pesos)

    2014   2013
Cash flows from operating activities:        
Utilidad neta consolidada $ 6,774,643 $ 14,962,770
Adjustments not requiring (providing) cash:
Income tax recognized in earnings   2,673,669   3,721,708
Depreciation and amortization   1,742,190   1,632,182
Gain on sale of property, machinery and equipment and others assets   (31,304)   (1,597)
Derecognition of property, machinery and equipment and Intangible assets   44,307   27,783
Gain on investment property revaluation   (225,695)   (210,076)
Equity in income of associated companies   (1,414,603)   (1,308,793)
Derivative financial instruments   42,742   (27,034)
Interest income   (465,787)   (459,899)
Interest expense   440,199   581,374
Loss (gain) on disposal of shares of associates   209,386   (7,588,664)
Exchange gain from financing   (3,179)   (32,595)
Other items   131,640   168,655
    9,918,208   11,465,814
Items related to operating activities:
(Increase) decrease in:
Accounts receivable   1,788,410   (2,241,581)
Other accounts receivable   811,498   (107,798)
Due from related parties   1,140,996   (889,187)
Inventories   642,414   498,514
Prepaid expenses   23,632   315,048
Long-term accounts receivable   11,500   23,610
Real estate inventories   (46,283)   (315,112)
Other assets   37,568   101,561
Increase (decrease) in:
Trade accounts payable   (550,191)   (229,560)
Due to related parties   (802,323)   388,888
Other liabilities   360,963   (767,559)
Provisions   (243,732)   2,088,567
Direct employee benefits   24,307   27,905
Advances from customers   (567,204)   (238,930)
Other long-term liabilities   370,248   464,695
Employee retirement benefits   (135,764)   18,365
Deferred revenue - Net     (872)
Income taxes paid   (3,016,004)   (5,097,420)
Derivative financial instruments   (191,655)   (104,545)
Net cash flows provided by operating activities   9,576,588   5,400,403
Cash flows from investing activities:
Purchase of investments in securities held for trading   (3,446,267)   (4,564,157)
Sale of investments in securities held for trading   788,019   1,013,038
Purchase of property, machinery and equipment   (3,114,661)   (2,361,218)
Proceeds from sale of property, machinery and equipment   175,964   68,171
Intangible assets   (251,156)   (232,805)
Interest received   465,270   459,899
Dividends received   678,486   761,335
Purchase of investment property   (470)  
Derivative financial instruments   162   12,537
Other   43,622   277,422
Sale of shares in associates     7,858,665
Acquisition of shares in subsidiaries and associates     (293,922)
Net cash flows (used in) provided by investing activities   (4,661,031)   2,998,965
Cash flows from financing activities:
Borrowings   5,652,066   8,556,225
Payment of borrowings and long-term debt   (6,811,432)   (14,053,805)
Interest paid   (441,835)   (581,374)
Dividends paid   (2,251,822)   (11,513,922)
Capital stock repurchase   (296,549)  
Derivative financial instruments   (2,364)   2,573
Proceeds from issuance of shares by our subsidiary     11,348,631
Expenses related to the issuance of shares by our subsidiary     (186,761)
Acquisition of non-controlling interest     (61,056)
Net cash flows used in financing activities   (4,151,936)   (6,489,489)
Effects of exchange rate changes on cash and cash equivalents   115,298   7,178
Net decrease in cash and cash equivalents   878,919   1,917,057
Cash and cash equivalents at beginning of the year   6,898,520   4,981,463
Cash and cash equivalents at end of the year $ 7,777,439 $ 6,898,520

See accompanying notes to consolidated financial statements.