NOTES TO CONSOLIDATED

FINANCIAL STATEMENTS

For the years ended December 31, 2015 y 2014
(In thousands of Mexican pesos)

1. Activities

Grupo Lamosa, S.A.B. de C.V. and its subsidiaries (the “Company”) are engaged in the manufacture of ceramic products for wall and floor coverings, adhesive for ceramic tiles and real estate projects for sale. The Company’s address is Avenida Pedro Ramírez Vázquez No. 200-1 Col. Valle Oriente C.P. 66269 San Pedro Garza García, Nuevo León, Mexico.

2. Relevant events

On May 4, 2015, the Company completed the sale of 100% of its interest in its Sanitaryware business after meeting applicable regulatory approvals, including the Federal Competition Commission. This transaction was announced on December 19, 2014, and as result, the Company classified the assets and liabilities to be disposed as held for sale and as a discontinued operation (see Note 19).

3. Basis of presentation and consolidation

4. Significant accounting policies

5. Critical accounting judgments and key uncertainty sources in estimates

6. Objectives of risk management in financial instruments

7. Cash and cash equivalents

8. Accounts receivable, net

9. Inventories

10. Other current assets

11. Real estate inventories

12. Property, plant and equipment, net

13. Intangible assets

14. Other current liabilities

15. Long-term debt

16. Finance leases

17. Employee benefits

18. Stockholders’ equity

19. Discontinued operations and assets classified as held for sale

20. Operating expenses

21. Contingencies and commitments

22. Income taxes

23. Related party balances and transactions

24. Information by operating segments

25. Approval of financial statements