Consolidated Statements of Cash Flows

For the years ended December 31, 2013 and 2012
(In thousands of Mexican pesos)

    2013   2012
Operating activities:
Income before taxes $ 994,360 $ 1,436,775
Adjustment for:        
Depreciation and amortization   318,657   362,443
Other reserves   78,759   22,308
Interest income   (13,802)   (30,130)
Interest expense   341,460   506,071
Exchange loss (gain), net   27,450   (280,866)
Disposal of property, plant and equipment   30,960   37,665
Effect of valuation of derivative financial instruments   16,987   18,275
    1,794,831   2,072,541
Changes in working capital:        
Increase in customers   (9,721)   (14,704)
Increase in inventories and real estate inventories   (176,147)   (88,020)
(Decrease) increase in suppliers   (66,621)   45,672
Other liabilities   46,698   37,233
Income taxes paid   (409,882)   (100,557)
Net cash flows provided by operating activities   1,179,158   1,952,165
 
Investing activities:
Purchase of property, plant and equipment   (423,140)   (184,058)
Interest income   13,802   30,130
Acquisition of intangible assets   (81,180)   (57,330)
Net cash flows used in investing activities   (490,518)   (211,258)
 
Financing activities:
Payments for bank liabilities   (757,776)   (998,691)
Interest paid   (297,012)   (474,959)
Dividens paid   (73,562)    
Net cash flows used in financing activities   (1,128,350)   (1,473,650)
Net (decrease) increase in cash and cash equivalents   (439,710)   267,257
Cash and cash equivalents at beginning of year   1,064,900   779,928
Effects from changes in cash value   1,755   17,715
Cash and cash equivalents at end of the year $ 626,945 $ 1,064,900

See accompanying notes to consolidated financial statements.