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