Consolidated Statements of Cash Flows

Grupo Lamosa, S.A.B. de C.V. and Subsidiaries
For the years ended December 31, 2016 and 2015 (In thousands of Mexican pesos)

Grupo Lamosa, S.A.B. de C.V. and Subsidiaries
For the years ended December 31, 2016 and 2015 (In thousands of Mexican pesos)

    2016   2015
Cash flows from operating activities        
Income before taxes $ 1,325,828 $ 1,149,694
Adjustment for:        
Depreciation and amortization   454,812   365,950
Other provisions   191,811   143,803
Interest income   (11,745)   (17,148)
Interest expense   355,115   247,203
Exchange loss, net   771,973   399,418
Disposal of property, plant and equipment   36,000   36,000
    3,123,794   2,324,920
Changes in working capital:        
Increase in accounts receivable   (169,024)   (71,754)
Increase in inventories and real estate inventories   (7,808)   (87,271)
Increase in trade accounts payable   243,335   165,868
Other current liabilities   (82,918)   (106,829)
Income taxes paid   (1,313,647)   (225,518)
Net cash flows provided by operating activities   1,793,732   1,999,416
Cash flows from investing activities:        
Acquisition of property, plant and equipment   (1,620,714)   (926,045)
Interest income   11,745   17,148
Acquisition of intangible assets   (15,994)   (48,882)
(Acquisitions) proceeds from sale of business   (4,625,595)   544,735
Net cash flows used in investing activities   (6,250,558)   (413,044)
Cash flows from financing activities:        
Bank loans   5,034,650   -
Payments for bank liabilities and finance lease liability   (836,570)   (237,221)
Interest paid   (312,396)   (205,759)
Dividends paid   (143,826)   (102,791)
Payments for bank liabilities   (135,044)   -
Net cash flows provided by (used in) financing activities   3,606,814   (545,771)
Net increase (decrease) in cash and cash equivalents   (850,012)   1,040,601
Cash and cash equivalents at beginning of year   1,371,456   290,270
Effects from changes in cash value   17,422   40,585
Cash and cash equivalents at end of the year $ 538,866 $ 1,371,456

See accompanying » notes to these consolidated financial statements.

Ing. Federico Toussaint Elosúa
Chief Executive Officer

Ing. Tomás Luis Garza de la Garza
Chief Financial Officer